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Plant Design Assignment Outline

Milestone 06 Definite Equipment Sizing and Capital Cost Estimate

REV 00 January 13, 2012 Page 1 of 2

Use the information obtained from the mass and energy balances, the PFD, as well as the equipment sizing exercise to estimate the Fixed-Capital Investment. Most estimates of capital investment are based on the costs of the equipment required. The most significant errors in capital investment estimation are generally due to omissions of equipment, services, or auxiliary facilities rather than to gross errors in costing. (Peters et al., Plant Design and Economics for Chemical Engineers, 5th ed. McGraw Hill, 2003.). Using the Study Cost Estimate approach, estimate the Fixed-Capital Investment for your plant. Use the following breakdown of fixed-capital investment items for your process: Direct Costs Indirect Costs 1. Purchased equipment 1. Engineering supervision 2. Purchased equipment installation 2. Legal expenses 3. Instrumentation and controls 3. Construction expenses 4. Piping 4. Contractors fee 5. Electrical systems 5. Contingency 6. Buildings (incl. services) 7. Yard improvements 8. Service facilities Justify all assumptions made during the estimation the Fixed-Capital Investment Cost. Present all costs in Canadian dollars! This work forms an integral part of the final plant design report (Plant Design Report Outline REV 04, 2011-9- 13). The work must be completed as a group and one submission per group must be issued for marking. The group leader will assign specific task to the group members. The following tasks need to be accomplished for Milestone 6: TASK DESCRIPTION MARK DISTRIBUTION (%) 20 35 GUIDELINES / COMMENTS MARK

6.1 Equipment Sizing 6.2 Determine Purchased Equipment Costs

Complete sizing of the equipment For each piece of equipment found on the PFD, utilize the respective equipment key parameters, the temperature and operating pressures, and the materials of construction to estimate the Purchased Equipment Costs. Include the individual costs in the equipment summary table. Based on the findings from item 6.2, determine items 2 (Purchased Equipment Installation) to 8 (Service Facilities) in the Direct Costs summary found above. Estimate the Indirect Costs. Estimate the Fixed-Capital Investment; provide a written cost summary and cost summary table. Combine this milestone and the corrected previous milestone(s) in one document

6.3 Determine Direct Costs

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6.4 Determine Indirect Costs 6.5 Cost Summary 6.6 Report revisions

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CHE 4225 PLANT DESIGN UNB - Department of Chemical Engineering

Plant Design Assignment Outline


Milestone 06 Definite Equipment Sizing and Capital Cost Estimate

REV 00 January 13, 2012 Page 2 of 2

(electronic and paper format required). Submit the original marked version of the previous milestone as a separate document in paper format only! 6.6 Report Format TOTAL: 10 100 Report: Grammar, spelling, formatting

CHE 4225 PLANT DESIGN UNB - Department of Chemical Engineering