50 Process Economics Review
Important Equations
| Total Capital Investment[latex][/latex] | [latex]TCI=FCI+WC[/latex] |
| Effect of capacity on equipment prices | [latex]\frac{C_a}{C_b}=\Big(\frac{A_a}{A_b}\Big)^n[/latex]
[latex]ln(Ca)=ln(K)+n ln(A_a)[/latex] |
| Effect of time on equipment prices | [latex]C_2=C_1\Big(\frac{I_2}{I_1}\Big)[/latex] |
| Preliminary Estimation of Purchased Equipment Costs | [latex]C_e=a+bS^n[/latex] |
| Lang Factor | [latex]C_{TM}=F_{lang}\sum^{n}_{i=1}C_{p,i}[/latex] |
| Return on Investment | [latex]ROI=\frac{revenue-COM}{TCI}×100\text{%}[/latex] |
| Revenue | [latex]revenue=unit\;price\;of\;product×sales[/latex] |
| Cost of manufacturing | \begin{align*} &cost\; of\; manufacturing\\ &=direct\;cost+fixed\;cost\\ &\;\;+general\;expenses \end{align*} |
| Number of operating labour | [latex]N_{OL}=(6.29+31.7P^2+0.23N_{np})^{0.5}[/latex] |
| Cost of operating labour | \begin{align*} &\text{# of operators}\\ &=N_{OL}×\frac{\text{# of shifts in a year}}{\text{# of shifts per operator}} \end{align*}$$C_{OL}=\text{# of operators}×salary$$ |
| Total direct cost of manufacturing | \begin{align*} &\text{total direct cost of manufacturing}\\ &=C_{RM}+C_{WT}+C_{UT}+1.33C_{OL}+0.03COM+0.069FCI \end{align*} |
| Total fixed cost of manufacturing | \begin{align*} &\text{total fixed cost of manufacturing}\\ &=0.708C_{OL}+0.068FCI+depreciation(0.1FCI) \end{align*} |
| Depreciation | \begin{align*} &\text{depreciation}\\ &=\frac{\text{purchased value}-\text{salvage value}}{\text{life of equipment }(n)} \end{align*} |
| General expenses | \begin{align*} &\text{general expenses}\\ &=0.177C_{OL}+0.009FCI+0.16COM \end{align*} |
| Cost of manufacturing | \begin{align*} &\text{cost of manufacturing}\\ &=0.180FCI+1.23(C_{RM}+C_{WT}+C_{UT})+2.73C_{OL}+depreciation(0.1FCI) \end{align*} |
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