DPKE: Process Economics

ORGANISATION AND MANAGEMENT

2023
Fourth week agenda…

• INVESTMENT COST

• Assignments (due date: Five days)

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The Four Types of Firms (Ref.6)
1. A sole proprietorship: is a business owned and run by one person.

2. A partnership: is identical to a sole proprietorship except it has

more than one owner.

3. A Limited Liability Companies: the owners’ liability is limited to

their investment and, therefore, they can not be held personally
liable for the firm’s debts. Two types: (i) Private companies
(Germany: GmbH; France: SARL; Italy: SRL; Spain: SL): the
owners are not allowed to trade their shares on an organised
exchange. (ii) Public companies (Germany: AG; UK: plc or PLC;
France: SG; Spain: SA): may allow their shares to be traded on an
organised exchange.

4. A corporation (or company): it is a legally defined, artificial being

(a judicial person or legal entity), separate from its owner. It has
many of the legal powers that people have. It can enter into
contracts, acquire assets, incur obligations, and it enjoys protection
under most jurisdictions against the seizure of its property.
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Plant Organization and Management (Ref.11)

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Organizational functions (Ref.11)

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Organizational structure (Ref.11)

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Organizational Design (Ref.11)

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Example from a methanol project (Ref.4, 1 million ton/year)

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References

1. Fertilizer Manual, UNIDO, Kluwer Academic Publishers (1998).

2. Kaltim-5 Project, Unpublished results (2015).

3. Equity Market-1, Lecture handout, UNSW Business School (2019).

4. Study on Methanol Project in Puerto Libertad, the United Mexican States, Sojitz
Corporation,( 2017).

5. HBR Guide to Project Management, Harvard Business Review Press, (2012).

6. J. Berk and P. DeMarzo, Corporate Finance, 2nd Ed., Pearson (2011).

7. S. Battistuta and S. Duncan, Accounting For non-accountants, Nelson-Australia (1998).

8. M.S. Peters and K.D. Timmerhaus, Plant Design and Economics for Chemical Engineers, 5 th
ed. (2003).

9. T.Tran, Process Economics, School of Chem.Eng.&Ind.Chem. UNSW (1994).

10. G.Towler and R. Sinnot, Chemical Engineering Design, Elsevier (2008).

11. W. Behrens and P.M. Hawranek, Manual For The Preparation of Industrial Feasibility Studies,
UNIDO (1991).

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 Assignment#5: Group Discussion (Due date: five days,
late submission will be penalized for whatever reason)
1. Identify the types of Indonesian firms, prepare a comparison matrix against
four types of firms as previously discussed.

2. Obtain the Organization Structure of PT. Pertamina (Holding)

3. Obtain the Organization Structure of Petronas (Malaysia)

4. Compare between 1. and 2. by preparing in a matrix of advantages and

disadvantages, give your opinion, try to obtain their latest Global Fortune
500 ranks!.

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