Fabricated equipment and machinery
Process instruments and control
Pumps and compressor
Electrical equipments and material
A. Fabricated equipment and machinery
Fixed charges
Plant overheads
Direct products cost
Administrative expenses
10
20
> 20
< 20
4
13
22
34
Market survey
Operating labour, supervision and supplies
Overhead and utilities
Depreciation, property tax and insurance
Perpetuity
Capital charge factor
Annuity
Future worth
Quarterly
Semi-annually
Annually
In no case, they are equal
15%
10%
1.5%
150%
Overhead cost
Working capital
Indirect production cost
Direct production cost
General expenses
Overhead cost
R & D cost
None of these
Fixed
Overhead
Utilities
Capital
Decrease
Increase
No change
None of these
Net present worth
Pay out period
Discounted cash flow
Rate of return on investment
Coal gasification
Steam reforming of naphtha
Electrolysis of water
Coke oven gas
Current asset
Current liability
Long term debt
Profit
Decreases
Increases
Remains the same
May increase or decrease, depending upon whether the fluid is Newtonian or non-Newtonian
Book value
Total cost
Operating cost
None of these
Cash reserve
Rate of return on investment
Payout period
Discounted cash flow based on full life performance
30
50
75
95
Gross margin = net income - net expenditure
Net sales realisation (NSR) = Gross sales - selling expenses
At breakeven point, NSR is more than the total production cost
Net profit = Gross margin - depreciation - interest
Utilities plants
Maintenance and repair inventory
Process equipments
Depreciation
(P - S)/n
1 - (P/S)1/m
(m/n) (P - S)
[2 (n - m + 1)/n(n + 1)]. (P - S)
p[(1+i)n - 1)]
p(1 + i)n
p(1 - i)n
p(1 + in)
Proper utilisation of machines
Means to minimise idle time for machines
Time of completion of job
Time of starting of job and also about how much work should be completed during a particular period
Product inventory
In-process inventory
Minimum cash reserve
Storage facilities
The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment
Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost
Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment
In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
Property
Excise
Income
Capital gain
Cost benefit analysis
Floor area availability
Terminal parameters
Evaporation capacity required
Fixed charges and plant overhead cost
And plant overhead cost
Plant overhead cost and administrative expenses
None of these
Equipment selection
Product evaluation
Equipment design
Cost estimation
Contingencies
Onsite and offsite costs
Labour costs
Raw material costs