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    Capital Cost

    Uploaded by

    Sollehan
    The document provides cost estimates for building and operating a chemical plant, including: 1) The total capital cost is estimated to be RM2150311, with 61% (RM1311690) for equipment and 39% (RM838621) for installation, labor, supervision and engineering. 2) Operating labor costs are estimated to be RM814968 per year for 18 workers across 3 shifts daily. 3) Utility costs including electricity (RM531833/year) and water (RM14076/year) are estimated to be RM550000/year. 4) The total annual cost of raw materials including urea, triple superphosphate, muriate of potash,

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    © All Rights Reserved
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    Capital Cost

    Uploaded by

    Sollehan
    100 views7 pages
    The document provides cost estimates for building and operating a chemical plant, including: 1) The total capital cost is estimated to be RM2150311, with 61% (RM1311690) for equipment and 39% (RM838621) for installation, labor, supervision and engineering. 2) Operating labor costs are estimated to be RM814968 per year for 18 workers across 3 shifts daily. 3) Utility costs including electricity (RM531833/year) and water (RM14076/year) are estimated to be RM550000/year. 4) The total annual cost of raw materials including urea, triple superphosphate, muriate of potash,

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    The document provides cost estimates for building and operating a chemical plant, including: 1) The total capital cost is estimated to be RM2150311, with 61% (RM1311690) for equipment and 39% (RM838621) for installation, labor, supervision and engineering. 2) Operating labor costs are estimated to be RM814968 per year for 18 workers across 3 shifts daily. 3) Utility costs including electricity (RM531833/year) and water (RM14076/year) are estimated to be RM550000/year. 4) The total annual cost of raw materials including urea, triple superphosphate, muriate of potash,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    100 views7 pages

    Capital Cost

    Uploaded by

    Sollehan
    The document provides cost estimates for building and operating a chemical plant, including: 1) The total capital cost is estimated to be RM2150311, with 61% (RM1311690) for equipment and 39% (RM838621) for installation, labor, supervision and engineering. 2) Operating labor costs are estimated to be RM814968 per year for 18 workers across 3 shifts daily. 3) Utility costs including electricity (RM531833/year) and water (RM14076/year) are estimated to be RM550000/year. 4) The total annual cost of raw materials including urea, triple superphosphate, muriate of potash,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    Capital Cost

    Equipment
    Mixer
    Boiler
    Granulator
    Screening
    Cooler
    Crusher
    Oil coating
    Dust coating
    Packaging
    Conveying Machine &
    belt
    Pump

    Quantity
    1
    1
    1
    2
    1
    1
    1
    1
    1
    1

    Cost
    4000
    9200
    32000
    5000
    280000
    16000
    4000
    4000
    9000
    10000

    2000
    Total Cost

    380200(RM1311690)

    Based on Table 7.5, the basis for the chemical engineering plant cost index;
    61% of the total plant cost are the equipment, while the other 39% is the
    installation, labor, supervision and engineer.
    So if the total cost of equipment is RM1311690 = 61%,
    The value of 39% can be obtain by cross-multiply with 61% = RM1311690,
    61% = RM1311690
    39% = RM x
    X = RM838621
    61% + 39% = 100% total cost of the plant
    RM1311690 + RM838621 = RM2150311
    The total capital cost of this plant is RM2150311

    Cost of Operating Labor

    Equipment
    Mixer
    Granulator
    Boiler
    Dust Coating
    Screener (2)
    Cooler
    Crusher
    Packaging
    Conveying belt & machine
    Oil Coating

    Workers
    2
    2
    1
    1
    2
    2
    1
    2
    4
    1
    Total Workers 18

    The total workers is 18 and there are 3 shift per day.


    18 workers x 3 shift per day = 54 workers require per day
    8 hour/day x 5.5 RM/hour x 343 day/year = 15092 RM/year
    15092 RM/year x 54 workers = RM 814968/year
    A single operator works on the average 49 weeks a year (3 weeks time off),
    five 8-hour shifts a week. This is amounts to (49 weeks/year x 5 shifts/week)
    245 shifts per operator per year. A chemical plant normally operates 24
    hours/day. This requires (365 days/year x 3 shifts/day) 1095 operating shifts
    per year. The number of operator needed to provide this number of shifts is
    [(1095 shifts/year)/ (245 shifts/operator/y) or approximately 4.5 operators

    Cost of Utilities

    Electric
    Equipment
    Mixer
    Granulator
    Boiler
    Dust Coating
    Screener (2)
    Cooler
    Crusher
    Packaging
    Conveying belt & machine
    Oil Coating

    Power (KW/per cycle)


    30
    25
    252
    30
    1.5
    15
    37
    0.75
    27.4
    30
    Total Power

    448.65
    The total power per cycle is 448.65 KW
    448.65 KW/cycle x 12 cycle/day = 5383.8 KW/day
    5383.8KW/day x 343 day/year = 1846643.4 KW/year
    1846643.4 KW/year x RM0.288/KW = RM 531833/year
    Water
    Equipment
    Boiler

    Water (m3) per cycle


    1.5

    1.5m3/cycle x 12 cycle/day x 343 day/year x RM2.28/m3 = RM14076


    Total Utilities
    Water + Electric = RM14076 + RM 531833 = RM545909/year ~
    RM550000/year (estimated)

    Cost of Raw Material


    Raw materials for the production of fertilizer is urea, triple superphosphate,
    muriate of potash and German Kieserite.

    Urea:
    Mass flow rate of urea= 10556.4 kg/day
    Price for urea per metric tonne= RM 895.31/ tonne
    Yearly

    cost

    of

    urea

    (10556.4

    kg/d)

    (343

    d)

    (RM

    895.31/tonne)

    (1tonne/1000kg)
    = RM 3241778.92
    Triple Superphosphate
    Mass flow rate of triple superphosphate= 9314.4 kg/d
    Price for urea per metric tonne= RM1205.22 / tonne
    Yearly

    cost

    of

    triple

    superphosphate=

    (9314.4kg/d)(343

    d)(RM

    1205.22/tonne)(1tonne/1000kg)
    = RM 3850484.10
    Muriate Of Potash
    Mass flow rate of muriate of potash= 6284.4 kg/d
    Price for urea per metric tonne= RM 688.70/ tonne
    Yearly cost of triple superphosphate= (6284.4kg/d)(343 d)(RM 688.70/tonne)
    (1tonne/1000kg)
    = RM 1484526.73

    German Kieserite
    Mass flow rate of german kieserite= 3844.8 kg/d
    Price for urea per metric tonne= RM 619.83/ tonne
    Yearly cost of german kieserite= (3844.8kg/d)(343 d)(RM 619.83/tonne)
    (1tonne/1000kg)
    = RM 817410.98
    Total Amount Cash of raw material= RM 3241778.92 + RM 3850484.10 +RM
    1484526.73
    + RM 817410.98
    = RM 9394200.73

    Estimating Manufacturing Cost


    By referring to the Table 8.2, page 200, Analysis, Synthesis, and Design of
    Chemical Processes:
    Direct manufacturing Costs (A)
    i)
    ii)
    iii)
    iv)
    v)
    vi)
    vii)

    Patents and royalties


    (0-0.06)COM = (0.05382)(15156228.64) = 815737.54
    Laboratory charges
    (0.1-0.2)COL = (0.2)(814968) = RM 292864
    Operating supplies
    (0.1-0.2)(line vi) = (0.2)(250000) = RM50000
    Maintenance and repairs
    (0.02-0.1)FCI = (0.1)(2500000) = RM250000
    Direct supervisory and clerical labor
    (0.1-0.25)COL = (0.25)(814968) = RM366080

    Fixed Manufacturing Costs (B)


    i)
    ii)
    iii)

    Depreciation
    0.1 FCI = 0.1(2500000) = RM250000
    Local Taxes and insurance
    (0.014-0.05)FCI = (0.05)(2500000) = RM125000
    Plant overhead costs
    (0.5-0.7)(line A.vii + line A.vi + COL) = (0.7)(2080400) = RM
    1456280

    Total Fixed Manufacturing Costs (C)


    i)
    ii)
    iii)

    Administration costs
    0.15 (COL + line A.vii + line A.vi) = RM312060
    Distribution and selling costs
    (0.02-0.2)COM = (0.2)(15156228.64) = RM3031245.6
    Research and development
    (0.05)COM = (0.05)(15156228.64) = RM757811.4

    TOTAL COST OF MANUFACTURING (COM) = RM 18909353.8

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