CHEN 4450 Process Economics Project-Fall 2009

A project team member evaluation form must be filled out, signed, and returned to me (either put in my mailbox or under my office door). This must be returned when you submit your oral report.  Turning in the form is part of the project grade.

Help and Hints

  1. Costs for most of the major pieces of equipment are in Peters, M.S. and Timmerhaus, K.D. [2003] Plant Design and Economics for Chemical Engineers. 5th ed. McGraw-Hill and the Icarus Process Economics Program
  2. Industrial supply companies are good sources for current costs and standard sizes of pumps, tanks, valves, blowers, etc. These companies include McMaster-Carr and Grainger.
  3. Prices from sources that are more than 15 years old are too old to be of much usefulness.

 

 

Format for the Final Report

Final Written Report (One report for the entire team)

1. The final project report should be consistent with the report described in chapter 11 of Peters and Timmerhaus Plant Design and Economics for Chemical Engineers. The format for the project report is as follows:

Letter of Transmittal (Brief- less than one page)

Title Page with each team member’s signature

Body of Report-

   Very Brief Introduction (origin, scope of project, process description and diagrams).

    Literature on Dimethyl Ether from Methanol (process design, catalysts, process economics, uses and markets, summarize your literature articles and indicate how they impact the proposed project’s economic viability). At least 4 references.

    Assumptions (basic assumptions in the economic analysis, alternatively this section can be incorporated into the appendix instead).

    Discussion (outline methods of economic analysis employed; give basis, reasoning and itemized tables for equipment costs, FCI, WCI, each itemized operating cost, yearly gross profit, depreciation, net profit and cash flow; present itemized profitability tables and itemized yearly calculations to obtain ROI, PBP, NPW and DCFRR). Attach your original calculations on each of the equipment, each of the operating cost items, and each of your economic calculation items and put them in an Appendix.

    Provide a description of your group’s approach to analyzing the economics of the Econ Project as requested by Dr. Chambers, including the detailed process economic analysis calculations and Icarus print outs for the requested analysis items for the proposed DME from Methanol project indicating the solutions to problems HW38 parts a,b,c,d,e,g,h; HW41. Do not do HW38f.

    Conclusions and Recommendations

    References (bibliography)

    Appendix

    1. Neat, word processed or handwritten calculations organized by topic ((itemized equipment costs, FCI, WCI, itemized operating costs, yearly project profitability calculations, etc. showing your calculations of each item such as each equipment cost item, raw material, direct labor, operating supervision each utility requirement and utility costs, waste treatment, maintenance and repair, operating supplies, laboratory charges, royalties, catalyst costs, property taxes, insurance, plant overhead, (administration, D and M, R and D expenses), etc.)). When using Excel spread sheets show cell formulas. All equations should either be word processed or handwritten. Use professional style.

     2. Discuss all assumptions - a bad assumption that is clearly explained is better than a mysterious item that appears in the report

     3. List sources of cost information in the main body of the report and in the sample calculations section. For periodicals and internet, list the normal information plus the date. For books, list the page number and the figure or equation numbers. For phone data, list the company or organization name, contact information and the date.

 

Oral Report

1. Plan a 15-20 minute talk. This will be followed by a 5 minute question and answer session.

2. Each group member should speak. Natural divisions of the material to be covered are (1) capital costs, itemized total product costs;  (2) profitability measures including depreciation, taxes, net profit, cash flow, ROI, PBP, NPW, and DCFRR;  (3) short term and long term project economics, global economics, global raw material sourcing, global product demand marketing, plant location, plant size (Use your ICARUS FCI, operating cost summary and profitability to help determine if the proposed size is too large, too small or about right, also should Auburn Enterprises plan a second plant, if so how large and where ?), product transport considerations. 

3. A computer projector and an overhead transparency projector will be available.

4. Turn in one hardcopy of your overheads (just before your presentation).

5. Attend presentations before or after yours (YOU MUST ATTEND AND EVALUATE ONE OTHERTALK). Fill out observer evaluation forms.

Last Modified:  Nov 30, 2009