Total Capital Investment |
TCI=FCI+WC |
Effect of capacity on equipment prices |
CaCb=(AaAb)n
ln(Ca)=ln(K)+nln(Aa) |
Effect of time on equipment prices |
C2=C1(I2I1) |
Preliminary Estimation of Purchased Equipment Costs |
Ce=a+bSn |
Lang Factor |
CTM=Flang∑ni=1Cp,i |
Return on Investment |
ROI=revenue−COMTCI×100% |
Revenue |
revenue=unitpriceofproduct×sales |
Cost of manufacturing |
costofmanufacturing=directcost+fixedcost+generalexpenses |
Number of operating labour |
NOL=(6.29+31.7P2+0.23Nnp)0.5 |
Cost of operating labour |
# of operators=NOL×# of shifts in a year# of shifts per operatorCOL=# of operators×salary |
Total direct cost of manufacturing |
total direct cost of manufacturing=CRM+CWT+CUT+1.33COL+0.03COM+0.069FCI |
Total fixed cost of manufacturing |
total fixed cost of manufacturing=0.708COL+0.068FCI+depreciation(0.1FCI) |
Depreciation |
depreciation=purchased value−salvage valuelife of equipment (n) |
General expenses |
general expenses=0.177COL+0.009FCI+0.16COM |
Cost of manufacturing |
cost of manufacturing=0.180FCI+1.23(CRM+CWT+CUT)+2.73COL+depreciation(0.1FCI) |
Feedback/Errata