OS%
and
J
JAIIES B. WEAVER Atlas Powder Co., W i l m i n g t o n , Del.
T
H I S new series is intended to review published d a t a and techniques for estimating chemical engineeiing capital investment, manufacturing cost, and profitability. An almost complete seriea of bibliographies, for both chemical manufacturing and petroleum refining, covers publications through 1954 (1L, ZL, 5L, 6 L ) . Reprinted compilations of articles ( 2 K , SIC, 6 K ) are also available with some of the basic publications in this relatively young field. T h e attached bibliography is annotated briefly t o supplement this section of discussion, and an alphabetic subject index is also provided. TTOcomplete texts on different phases of chemical engineeiing economics ( l K , 7 K ) and several books containing relevant sections (lOD, 4K, 5K, 8 K ) appeared during the year. Certainly the outstanding addition was by Schn-eyer (7K)-the first booklength study for chemical engineers of engineering economics. Mechanical and industrial engineers have long since had texts available, with examples in their own field, describing the principles of economy, interest, economic balance, break-even charts, and manufacturing cost relationships. T h e Schweyer text is generally good, b u t somewhat ambiguous on profitability. It first properly relates rate of return on investment to interest earning r a t e b u t then introduces less exact measuies (p. 164) which are called acceptable, although their answers a l e shown t o be in error. Aries and Newton ( 1 K ) offer an extensive compilation of d a t a on capital investment required for a x i d e range of equipment. T h e possible range of error resulting from use of their graphs should have been indicated more clearly. V i t h o u t more details on t h e source year for each d a t a point as 17-ell as d a t a on the cost index used to bring them to 1954 prices, t h e compilation can only b e used for very rough estimating. The section on piofitability suffers by comparison n i t h many of t h e discussions reviex-ed here. T h e y d o n o t insist t h a t working capital b r considered vvith fixed investment in such analysis. Other important contributions in book form weie t h e chapters in Ireson and G r a n t ( 5 K ) on “managerial economics” by Joel Dean and “engineering economy” by Paul Norton; the sections on (‘the time factor in costs and plofits,” and ”control of operations and investment” in Fiske and Beckett (4K);a revised printing of Grant’s fine text on depreciation ( 1 O D ) ; and t h e fourth edition of a pamphlet on engineering economy intended to assist chemical and other engineers seeking t o pass the New York professional engineering examination (8K). PROFITABILITY
I n contrast t o t h e ambiguous treatment accorded profitability estimation in two texts as mentioned, a number of different and
934
very specific techniques, each Kith its persuasive adherents, have, continued t o appear in the periodical literature. The timehonored DLIPont system has been described again (IF)and seems instancae still to be in wide use by estimators in general-for (25E,41G, 1 5 N ) . Other systems non- being proposed have ~ I I common t h e advantage of taking into account t h e effect of tho time value of money. T h e “investor’s’’ or “discounted cash flow” method, 17-hich uses, as a measure of rate of return, the compound interest earning r a t e of t h e project, turned up in notably dissimilar publicatione ($?F,9F, IOF). Happel’s “ventureworth” method ( S F , @‘) and a related proposal (88‘)measure profitability as t h e present value in dollars of t,he lifetime earnings of t h e project after cost of capital as an interest rate has been applied. Scheuble ( 1 1 F ) presents a nomograph for equipnient replaccment which interrelates earnings, investment, minimum desired return on investment (interest rate). and cash-recovery period (pay-out time) for investment, plus interest’. YanagisaTYa (1BF) presents a nomograph for pay-out time including interest. T h e “capitalized cost’, system, well recognized in noncheniical texts on engineering economy, has been related to chemical eiigineering ( 6 F , 6 F ) . T h e system has also been compared with the “annual cost” method ( i F ) . i i n interesting discussion has arisen as to whether, in these techniques, annually compounded interest should be applied a t the beginning or the end of the year (6F). This difficulty might be avoided by continuous compounding, as recommended for other systems (WF:QF, IOF). Such application of continuous int’erest also better approximates the continuous influx and outflow of moneys t o and from a business enterprise. TECHNIQUES AND MISCELLANEOUS
h
fell- discussions of general estimating techniques and their usefulness are st’ill appearing (10E, 14E, IgE-WOE, %E, S2E, B M , 1 6 M ) ,along with studies of such familiar aids as breakeven charts (R?E pro, 2223 con), nomographs (16E), and statistical analysis ( I S E , %$E,31E). A number of new techniques have also been described. T h e operations-research t’echnique of h e x programing is apparently useful to estimators ( l E , 333). Smith and Dresser (29E)develop the applicability of incremental costs in estimat,es. Punched-card compilation of equipment. cost d a t a has been used to advantage (623, 8E). Other approaches should improve insight into run length ( J E ) , replacement to minimize cost ( 9 E ) ,penalty for partial capacity operation (I‘?‘E), and reduction of intangibles to numerical values ($023). Gitzendanner (11E, 1ZE) has proposed a novel method for analyzing the risks of various alternatives in order to minimize probable cost. T h e graphs are apparently printed incorrectly, b u t the approach is said to have merit (2E, Z S E ) .
INDUSTRIAL AND ENGINEERING CHEMISTRY
Vol. 48, No. 5
COST ESTIMATION REVIEW Research and pilot plant economics and their relation to estimating have been analyzed from several points of view ( 6 M , 7 M , I J M , 1 9 M ) . T h e various methods for analyzing profitability prospects of research projects have been reviewed ( 1 6 M ) . Estimates are at times purposely made conservative; they may include n o t only contingency items but safety factors. Butler ( S M ) discusses t h e superiority of truly realistic appraisals. Productivity ( 8 M , I S M ) , sources of capital (9M,W O M ) , and price as a function of national product volume (ZTM, 2 I M ) have also been discussed. T h e choice of making or buying chemical ingredients has been reviewed ( 6 M ) . A new quarterly publication ( Z d M ) , though aimed at general engineering economic studies rather t h a n chemical engineering alone, should provide a valuable forum for publication and critical review. Cost indexes have been kept up to date (Section J of bibliography), and Kelson ( 5 J ) has reviewed the base costs on which his series of indexes ( 4 J ) are compiled. Nelson, one of t h e most prolific contributors t o t h e field of cost estimation ( 6 K ) ,has also started a new “cost-imating” series (35A-37A), so far devoted to equipment costs.
MANUFACTURING COST ESTIMATION
Two U. S. Government publications ( 2 0 , S D ) can assist in estimation of wages for areas of t h e country where t h e estimator’s company has no experience. Fringe benefits are largely a matter of company policy, b u t some available figures for t h e industry ( 6 D , 1.90) are useful guideposts. New d a t a also appeared which should assist in estimating: maintenance (5D, 9D,180, $ID), packaging (14D),materials handling (5B, 16D), chemical freight ( l l D , 19D, WSD), and administrative expense (WWD). The many references indexed under depreciation swell further the flow of books and articles on this subject since the revision of the 1954 tax laws. Estimation of depreciation costs often appears deceptively simple, since a company can establish a rigid project-life assumption with which all projects are compared for profitability. However, the actual depreciation allowance for tax purposes, t h e method of calculating depreciation by straightline or other methods, the expected process obsolescence, and the degree of specialization of t h e equipment involved will all affect the timing of a company’s earnings on a given product or process. Such relationships should be clear before a project is undertaken so t h a t the most profitable course, based on all available data, can be chosen.
PRODUCT COST DATA INVESTMENT D4TA
Considerable d a t a has appeared on investment and manufacturing costs for chemical and petroleum products (Sections G, H ) . Assumptions on which costs are based are usually stated in enough detail t o allow conversion to different utility costs, estimated plant life, etc., for use in varying circumstances. Konperiodical literature provided two significant contributions to the d a t a available on petrochemical costs (SG, SWG). As shown by the index, these cover in some detail a wide range of petrochemical products. It is interesting t h a t they are published, respectively, by a state and the National Government. T h e latter introduces a concept, not used in previous literature, relating labor requirement on a plant to the size of the plant. T h e “six-tenths factor” is >>-ellestablished for relating capital costs roughly to t h e ratio of capacities raised to t h e 0.6 or 0.7 power (dttE,bK). This new concept relates labor cost in dollars per year t o the ratio of capacities raised to fractional powers between 0.15 and 0.5. No substantiating d a t a for this technique is presented. The tendency is continuing, particularly in t h e petroleum journals, to publish d a t a t h a t have already appeared elsewhere (for instance, S1A-33AJ ZSG, i4G, 7”-9H). Better service might be provided by some sort of cross indexing or abstracting service which could in one journal summarize the contents of other journals each month and make unnecessary the regular reading of all of them.
Section A of the bibliography covers processing equipment; Section B covers auxiliary equipment such as piping, blowers, and instruments; Section C covers off-sitefacilities including utilities. Few of these items need to be discussed here in detail, since the index and t h e bibliography annotations are self-explanatory, Rauman’s (2C) comprehensive analyses of utility and off-site facilities, investment, and operating costs are worthy of special mention as a workmanlike compilation of d a t a from his company files. His work offers real assistance t o this country’s estimators. Many of our larger chemical and engineering companies must have considerable d a t a which, if correlated and published in this manner, would significantly improve t h e accuracy of estimations based on information from t h e literature. Some of the basic sources in t h e literature appeared in 1947-for instance, Chilton in (dK)-and reliability depends now on accurate choice of cost indexes as well as a n assumption of little technological advance in the last nine years. Faasen (10E) and Gore ( I S E ) have both referred t o the availability in company files of certain correlated equipment and plant cost d a t a which, either because of a restrictive company policy or because no author has volunteered his services, have never been published. Gore’s system for statistical analysis of past investment-cost d a t a allows preliminary investment estimation with a
JAMES BELLAMY WEAVER, 2nd, a chemical engineer, has chosen to specialize in a relatively new field-the economic phases of chemical engineering-and currently utilizes this experience as senior engineer in the Economics Evaluations Department of Atlas Powder Co. Weaver attended the Massachusetts Institute of Technology, receiving his B.S.Ch.E. there in 1944 and M.S. in 1947. From 1945 to 1950 Weaver served as an assistant to the director of research, Godfrey L. Cabot Co., and then before joining Atlas in 1954 was a techno-economist with the staff services research group of Olin Industries. Although chemical engineering economics has provided the material for most of his published papers, Weaver has also coauthored articles on soil chemistry. He is a registered professional engineer in Delaware and is active in the affairs of the ACS, AIChE, ASEE, and the Chemical Marketing Research Association. May 1956
INDUSTRIAL AND ENGINEERING CHEMISTRY
935
good knoxledge of t h e accuracy involved. T h e system could be applied generally if a continuing flow of information on recent equipment costs were being published regularly. 1955 INDEX
rlbsorbers. See Towers, fractionating. Accounting (6E, 7 K ) . Acetaldehyde manufacture (SWG). Acetic acid manufacture (SZG). Acetic anhydride manufacture (SZG). Acetylene manufacture (4G, I l G , 20G, SWG, 46G, 48G-50G). Bcrylonitrile manufacture (S2G). Administrative expense (22D, S Z E , I K , 2 K ) . Adsorption ( 7 K ) . Agitators. See Mixing equipment. Agglomerators. See Precipitators. Air ( 2 K ) . Air conditioning ( 1 K , 7 K ) . Alcohol, ethyl. See Ethyl alcohol manufacture. illcohol, methyl. See Methanol manufacture. Alcohols, fatty. See Fatty alcohol manufacture. Alkylation ( l Q H ,2 0 H ) . Ammonia manufacture ( l S G , 14G, 16G, 29G, SaG, SSG, SOG, S K ) . Ammonium nitrate manufacture (SZG). Amortization. See Depreciation. Amyl alcohol, acetate, chloride manufacture (28G). hnnual cost (lOD, 7 F , I I F , 7 K ) . Aromatics recovery ( 1 1 H ) . Asbestos ( I K , 6 K ) . Autoclaves. See Vessels. Auxiliary facilities. See Service facilities. Bags ( I K ) . Ball mills. See Size reduction equipment. Bark removal ( 6 A ) . Batch operations ( S K ) . Bibliographies (lL, 2L,6L,6L). Blasting (OK). Blenders. See Mixing equipment. Blowers (See also Fans) (6B, l K , 2 K , 6 K , 7 K ) . Board (BK). Boilers ( l K , 6 K ) . Book value ( 7 K ) . Break-even charts ( Z i E , %E, H E , S F , i K , BK, 6 K , 7 K , 8 K ) . Brick ( l K , 2 K , 6 K ) . Bridges ( 6 K ) . Bubble cap plates. See Trays, fractionating. Budgeting. See Capital budgeting. Buildings (2C, 4C, 6C,18E-20E3 ZK). Building cost indexes ( S J , 4 J , lOJ,l K , 6 K , 7 K ) . Burden. See Overhead, operating. Burners ( 6 K ) . Butadiene manufacture (26G, 27G, 56G, S7G). Butene manufacture ( S 7 G ) . By-products, cost allocation ( l K , 5 K , 7 K ) . Cafeteria buildings ( 2 C ) . Canital
Sources of (25E, BF, X7orking (26E, SWE, 1K-SK). Capitalized costs (SF, 6F, 6F, S K , 8 K ) . Carbon monoxide purification ( S A ) . Carboys ( l K , BK). Cash ( I K , 2 K ) . Caustic soda. See Sodium hydroxide manufacture. Cement and block ( 2 K , 6 K ) . Centrifugal separators ( l a A , I K , 2 K , 6 K , 7 K ) . Chemical transportation. See Freight, chemicals. Chlorine manufacture (9G, 20G, 42G). Chromium, manufacture from wastes (S4G). Clarifiers. See Thickeners, continuous. Classifiers. See Thickeners, continuous. Coal ( I K ) . Coffee, soluble, manufacture (24G). Coking ( l G , S H ) . Cold storage. See Storage, cold. Columns. See Towers, fractionating. -Communications systems (2'2, 4C). Compressed air. See Compressors.
936
Compressors ( l S B , BC, l K , Z K , O K , 7 K ) . Concrete ( 1 K , BK, 6 K ) . Concrete reinforcement ( 6 K ) . Condenser boxes ( 6 K ) . Condensers ( I O A , l 4 A , gOE, I K , 2 K , 6 K ) . Conduits (BK). Conservatism ( S J I ) . Construction. See Installation costs; Buildings; Fabrication, Containers ( l K , 2 K ) . Contingencies (32E, l K , 2 K ) . Contractor's fee ( l K , 2 K ) . Control laboratory. See Laboratory, control. Conveyors (6B, 1 K , 2 K ) . Coolers. See Heat exchangers: Refrigeration. Cooling towers ( I S C , 7°K). Cooling water. See Water, cooling. cost Control (21E). Indexes. See Indexes, cost. Of estimating. See Estimates, cost of preparing, Crushers. See Size reduction equipment. Crystallizers (121, 2 K , 6 K ) . Culverts ( 6 K ) . Cyclones ( 4 2 A , 1K-SK, CK, 7 K ) . Decarbonization ( S H ). Definitions of terms. See Glossary. Dehydrators, gas (8A, 24H). Dehydrators, tissue (20A). Delivery. See Distribution of products. Demineralized water systems. See Water, demineralization. Depreciation ( 1 D , 40,7D, 8 0 , IOD, 13D, 1 6 0 , l 7 D , 2OD, 3ZE, IK-SK, 5K-8K). Design costs ( 2 K ) . Desulfurization, catalytic ( i H , 2 H , i 3 H , l 4 H ) . Detergent manufacture (ZSG, 4SG). Discounted cash flow ( Z F , 1O F ) , Distillation equipment. See Towers. Distilled water. See Water. distilled. Distribution of products Ditching ( 6 K ) . Doors ( 6 K ) . Drafting costs ( 2 K ) . Driers. See Dryers. Drums ( 1 4 0 , l K , BK). Dryers ( Z 7 A , 41A, I K , ZK, GK, 7 K ) . Dryers, spray (2OA). Dust collectors. See Filters, gas and air. Earnings. See Profit. Economic balances (lOD, 29E, S F , 4P,7 K , 8 K ) . Economics. See Engineering economics. Ejectors ( 1 K , 2 K , 6 K ) . Electrical equipment ( l K , BK, 6 K , 7 K ) . Electrical indexes ( 7 J ) . Electricity. See Power. Elevators, bucket ( I K ) . Employee benefits (6D, 12D, SZE, l K , 2 K , 611). Emulsifier manufacture (4SG). Engineering, design ( i K , 2 K , 3-11), Engineering economics ( S F , 4F, b'K, 7 K , 8 K , 12M, 1551). Engines, Diesel, electric. gas, steam (4C, 6 K ) . Entrainment separators ( 4 6 A ) . Equipment estimation (IOE, 18E-20E). Equipment indexej (10E. I J , 4J. 5J, QJ). Erection. See Installation costs; Fabrication. Error propagation (13E). Estimates Comparison with actual (I5E. ZK, 831). Cost of preparing (31E). Reliability of ( I S E , 7 K ) . Timing (,WE. 1 K . 2J1, 1011,1 4 X , i 6 M , 1941). Estimating forms (BK, OK, 7 K ) . Estimation methods (10E, i 4 E , i8E-20E9 26E, 2 K , 6 K , 7 K , S J I , 1641). Ethane recovery (18G). Ethanolamines manufacture (SBG). Ethyl alcohol manufacture (SG. BOG, S 2 G ) . Ethylbenzene manufacture (32G). Ethyl chloride manufacture (SG. S2G). Ethyl dichloride manufacture ( 2 G ) . Ethylene dichloride manufacture (S2G). Ethylene glycol manufacture (SG, S#G, SSG). Ethylene manufacture ( S G , i 2 G , 17G, SgG).
INDUSTRIAL AND ENGINEERING CHEMISTRY
Vol. 48, No. 5
COST ESTIMATION REVIEW Ethylene oxide manufacture (SG, 10G, S l G , S6G). Ethylene purification ( S A ) . Evaporators (ZSA, 1K-SK, 6 K ) . Excavation ( 1 K , 6 K ) . Exchangers, heat. See Heat exchangers. Exchangers, ion. See Ion exchange. Exhausters. See Fans; Blowers. Expansions, plant (ZK, 6 K , 9iM). Explosion doors ( 6 K ) . Extractors. See Centrifugal separators.
Fabrication ( 6 K ) . Failure theory ( Q E ) . Fans (6B, 1 K , WK, 6 K , 7 K ) . Fatty alcohol manufacture (6G, ,266). Fencing ( 1 K , 6 K ) . Fertilizer, liquid, manufacture (5G). Filters, gas and air (WA, 21A, M A , 388, 1 K , S K , 6 K , 7 K ) . Filters, liquid ( l S A , 2 4 A , ZOE, l K , 2 K , 6 K , 7 K ) . Financial control ( 2 1 E ) . Firebrick ( 6 K ) . Fire-fighting equipment (ZC, 6 K ) . Fireproofing ( Z K ) . Fittings, pipe (17B, 1 K , ZK, 6 K ) . Fixed capital. See Capital, fixed. Fixed costs ( l K , 7 K ) . Floors ( 4 C , 1 K ) . Flotation equipment ( 1 K . 7 K ) . Flowmeters ( 1 K ) . Footings ( Z K ) . Forgings ( 6 K ) . Formaldehyde manufacture (WQG,d2G). Forms, concrete ( 6 K ) . Forms for estimating. See Estimating forms. Foundations ( 4 C , WOE, I K , 2 K , 6 K ) . Frames, structural ( 6 K ) . Freight, chemicals ( l l D , l Q D , WSD, SZE, l K , WK, 6 K ) . Freight, equipment ( Z K , 6 K ) . Fringe benefits. See Employee benefits. Fuel ( Q C , l l D , 1 K ) . Furfural manufacture (15G). Furnaces ( Z K , 6 K , 7 K ) .
Gages, pressure. See Pressure gages. Gages, tank (SZA). Gas ( 9 C ) . Gas dryers. See Dehydrators, gas. Gasholders ( l K , 2 K , 6 K ) . Gasoline engines. See Engines. Gas producers ( I K , 2 K , 6 K ) . General expense. See Administrative expense. Generators, electrical. See Power plants, electricTgeneration equipment. Glossary ( % K ,7 K ) . Grating ( l K , 6 K ) . Grinders. See Size reduction equipment. Guesstimates ( 2 K ) .
Handholes ( 6 K ) . Handrails ( I K , 6 K ) . Heat exchangers (See also Condensers; Coolers) ( I A , 4A, 6 A , 11A, S4A, S6A, 20E, 1K-SK, 6 K , 7 K ) . Heating ( 1K ) . Hoists (6B). Holders, gas. See Gasholders. Hydrogen manufacture ( S A , 19G). Hydrogen cyanide manufacture (16E, S2G, @G),
Incinerators ( 1K ) . Income statement ( Z K ) . Incremental approach (IOD, ZQE,2 F , S F , S K , 5 K , 7 K , 8 K ) . Indexes, subject. See Subject indexes. Indexes, cost ( I O E , 1 S E , 18E-2OE, SG, 1 J , 2J-10J, 1K-SK, 6K. 7 K ) . Inflation ( 2 J , ZK, 7 K ) . Ingredients ($$E, I K , 2 K , 7 K , 6M). Installation costs (18E-2OE, l K , 2 K , 6K). Instrumentation (See also particular instruments) (16B, 4 C , I K , ZK,
65).
Insulation, for cold ( 6 K , 7 K ) .
May 1956
Insulation, for heat ( l K , 2 K , 6 K , 7 K ) . Insurance (S2E, I K , 8 K ) . Intangibles (SOE). Interest on investments (SWE, l K , S K , Y K ) . Inventory (1K-SK). Investment, other than equipment (usually per cent breakdown) (ZK,SK, 6 K , 2 M ) . Ion exchange (JOG, S4G, Z K ) . Ion exchangers ( 1K ) . Isobutylene manufacture (2G). Iron, cast ( 6 K ) .
Kettles. See Vessels. Kilns. See Dryers; Furnaces.
Laboratory buildings (WC, 1K ) . Laboratory, control ( 2 K ) . Labor Indexes ( S J , 4 J , 9 J , 1OJ, 7 K ) . Operating ( I K , 2 K ) . Operating, per unit product, various products ( 2 K ) . Rates (2D, SD, 1 K , WK. 6 K ) . Lactic acid manufacture (2QG). Ladders ( 1 K , 2 K , 6 K ) . Land ( I K ) . Lighting (See also Power ) ( I K , ZK). Linear programing ( 1E , M E ) . Linings, vessel or tower ( 6 K ) . Low temperature processing ( S A , 47G). Lubricators ( 6 K ) . Lumber ( I K , 6 K ) .
Maintenance (60,QD, 1 8 0 , 2 1 0 , Q E ,S$E, 1K-SK, 6 K ) . Manholes ( 2 K , 6 K ) . Manufacturing cost (%E, 1 K , S K ) . Marginal return ( M E , S K ) . Marginal unit costs (29E, S K ) . Market analysis ( 2 K ) . Materials Chemical. See Ingredients. Fabrication, construction indexes (SJ-BJ, 9 J ) . Handling (6B, 16D). Metallizing ( 6 K ) . Metallographic equipment ( 1 6 A ) . Meters. See Instrumentation; meters by name. Methane purification ( S A ) . Methanol manufacture (32G). Methods of approach to estimating. See Estimation methods. Methyl chloride manufacture (SWG). Mineral dressing ( 7 K ) . iMixing equipment liquids (%A, 44A, I K , ZK). Solids ( 3 9 A , l K , 2 K ) . Mortar ( 6 K ) . Motors, electric (CC, 1 K , 2 K , 6 K , 7 K ) . Motor reducers. See Speed reducers.
Nitric acid manufacture (SWG). Nomographs (16E, I I F , 1 2 F , S K ) . Nozzles, pressure ( 2 K ) .
Obsolescence. See Depreciation. Office buildings ( 2 C , 1 K ) . Office equipment ( 6 K ) . Oil, exploration and production (llLJJ). Oil, fuel (9C, 16C, 1 K ) . Operating capital. See Capital, working, Operating costs. See Manufacturing cost estimates. Out-of-pocket estimating method. See Incremental approach. Outside lines (WK). Overhead, operating ($$E,1 K , ZK, 7 K ) . Oxygen manufacture (47G). Ozone manufacture ( 7 G ) . Packaging ( S Z E , I K ) . Packing, tower ( 2 K , 6 K ) . Painting ( S I A , SWA).
INDUSTRIAL AND ENGINEERING CHEMISTRY
932
Paints ( 2 K ) . Parking facilities ( 6 C ) . Partial capacity operation ( I 7 E , S Z E ) . Patents. See Royalty. Pay-out time (25E, IF, l $ F , i K , 2 K , 5 K , 7 K , W ) , Peep boxes ( 6 K ) . Phenol manufacture (S2G). Phthalic anhydride manufacture (SZG). Pickle-liquor recovery (SOG) Piling ( I K ) . Pilot plant economics (1431). Pilot plant equipment ( @ A , 2 K ) . Pipe bends ( 6 K ) . Pipe stills. See Stills, pipe. Pipelines Cross-country- (4C, ZK, 6 K , 7 K ) . Transportation (S2G). Solids transportation (6B). Piping, process and utility (123-423,17B, IOE, lI1, OK, 611). Plant Investment breakdown, per cent (IOE, GK, , $ X ) . Location ( 4 E , 1 K ) . Site. See Site preparation. Plant costs Complete, various products ( S K , 6 K ) . From eauimnent costs (10E. l K - S K ) . Per unit pioduct ( 2 K , S K ) . Plaster ( 6 K ) . Platforms ( I K , 6 K ) . Plates, fractionating. See Trays, fractionating. Plumbing ( 6 K ) . Polyethylene manufacture (32G) Polystyrene manufacture (3ZG). Poly(viny1 acetate) manufacture (SIG). PoIy(viny1 chloride) manufacture (32G). Power costs ( S C , 4OE, I K , OK). Power Lines ( 1C ) Per unit product, rarious products (bK). Plants, electric generation equipment (ZC, 2K, SK,6 K ) . Precipitators, electrical, dust and mist ( 4 9 A , 1 K , S K ) . Preconstruction expenses ( g K ) . Premium pay ( 2 K ) . Pressure gages ( i K , 6 K ) Pressure vessels. See Vessels, steel, pressure. Price of product ( 4 K ) . Pricing ( l K - d K , I O M , 1 7 M , 1 8 M , ZZAll). Producers, gas. S e e Gas. Production cost control ( 2 I E ) . Production cost estimates. See Manufacturing cost. Productivity (8M,I S M ) . Profit (1K-SK, 7 K ) . Profitability ( 1 F - l 2 F , I K , S K , 7 K , 11.11). Programing, linear ( I E , S S E ) . Propylene manufacture ( 1 7 G ) . Pulverizers. See Size reduction equipment. Pump houses ( 6 K ) . Pump stations ( l K , 6 K ) . Pumps Gas ( 1 K , S K , 6 K ) . High vacuum ( 6 K ) Installation of (DB). Liquid ( 7 B , 8 B , JOB, I K , 2K, 6 K , 7 1 0 . Punched card utilization ( 6 E , 8 E ) . Purchasing value. See Inflation. Pyrometer. See Thermocouples; Thermometers.
.
.
I
Railroad cars ( I K ) . Railroad siding (ZC, 1 K ) . Raw materials. See Ingredients. Reactors. See Vessels. Receivers. See Tanks, storage. Reducers, motor. See Speed reducers. Reduction, size. See Size reduction equipment. Refineries, complete cost ( 6 K ) . Refining (16H, 16H, Z 5 H ) . Reforming catalytic (28G, dH-iBH, I7H, I R H , ~ Z l H - Z S H ,7 K ) . Refrigeration ($C, l 4 C , I K , ZK, 6 K , 7 K ) . Reliability of estimates. See Estimates, comparison with actual. Repairs. See Maintenance. Replacement (iOD, 9 E , 6 F , 6 F , I I F , SK-jK, 7 K , 8 K ) . Research economics ( 5 X , 7 M , l 4 M , i 6 M , i 9 M ) .
938
Research expense (32E, I K , 2 K ) . Return on inrestment ( M E , IF-QF, 8F-i1F, I K , ZK, 6 K , 7 K , S K , 11M) . Rice wax extraction (LOG). Risk comparison ( 2 E , I i E , IZE, 25E,I K , ZK, 4 K ) . Road building (ZC, 4 C , 1 K ) . Rock ( 6 K ) . Rolls. See Size reduction equipment. Roofs ( I K ) . Rotameters ( I R ,6K). Rovalty ( S 2 E , I K , ZK). Rubber, synthetic, manufacture (SZG). Run-length optimization ( S E ).
Sales expense ( H E , ZK,Z K ) . Salvage value ( 9 K ) . Sand ( B K ) . Sandblasting ( 3 2 A ) . Scaffolding ( I K , 6 K ) . Screens, vibrating ( 1 K , 2 K ) . Screens, wet ( 7 8 ) . Screw conveyors. See Conveyors. Scrubbers ( S K ) . Selling expense. See Sales expense. Semicontinuous operations (327). Separators. See Centrifugal separators: Cyclones; Entrainment separators; Flotation equipment; Thickeners, continuous. Service facilities (ZC, 4 C , 1 K , Z K ) . Settling equipment. See Thickeners, continuous. Sewage disposal. S e e Waste disposal. Shingles ( 6 K ) . Shipping. See Freight. Shop buildings ( 2 C ) . Sidewalks (K',4C, I K ) . Siding (BK). Site preparation (ZOE, i K , ZK, 6 K ) . Sixth tenths factor (18E-$OE, 28E, I K , 2 K , 6 K , 7 K ) . Size factor us. cost (See also Six tenths factor) (1821). Size reduction equipment ( 4 S A , 1K. 2 K , 6 K , 7 K ) . Sodium carbonate manufacture (QG). Sodium hydroxide manufacture (QG, 29G, 42G). Soluble-coffee manufacture (94G). Speed reducers ( Z K ) . Spheres ( I K , 2 K , 6 K ) . Spray dryers. See Dryers, spray. Sprinklers ( I K ) . Stacks (1423,i 5 B ) . Stairways ( I K , Z K ) . Standard costs ( 2 K , I X ) . Starters, motor (ZK, 6 K ) . Statistics in estimating (2423,S l E , Z K ) . Steam ( I K , ZK, 7 K ) . Steam generators ( 2 C , I Z C , iK,7 K ) . Steam requirements per unit product, various products ( 2 K ) . Steel ( I K , BK, 7 K ) . Stills, pipe ( 6 K ) . Storage Cold ( 6 K ) . General ( 2 C ) . Tanks. See Tanks, storage. Styrene manufacture (3G, SZG). Subject indexes ( 7 K , I L , BL, S L , 4L,6L, 6 L ) . Substations, electrical ( I K ) . Sulfonation ( 2 3 G ) . Sulfuric acid manufact,ure (8G). Sunk costs ( 5 K , 7 K ) . Supervision (S2E. l K , Z K ) . Supplies, operating (SZE, I K , IK).
Tanks, storage (See also I'essels) (1QA. 2 6 4 , SIA-33.4, S 7 A , 4C, $DE, i K , IK,6 K , 7 K ) . Tank cars. See Railroad cars. Taxes (52E, I K , S K , 5 K ) . Telephone ( 6 K , 7 K ) . Thermocouples ( 6 K ) . Thermometers ( I K , 6 K ) . Thickeners, continuous ( I S A , I K , 2 K , 6K. 7 K ) . Tile ( I K , 6K). Tools, hand, costs, index ( 8 J ) . Towers, cooling. See Cooling tovers. Fractionating (9d,2OE, I K , ZK, 6 K , 7 K ) . Transforniers (fBC,ZT1,BK).
INDUSTRIAL AND ENGINEERING CHEMISTRY
%A,
Vol. 48, No. 5
COST ESTIMATION REVIEW Transportation ( 1 K ) . Trays, fractionating @$A, WK, 6 K ) . Tubes, boiler (ill?). Tubing ( 2 K , 6 K ) . Turnover ratio (17E-WOE, IK-SK, 7 K ) . Urea manufacture (SZG, 44G). Utilities, operating (see also individual utilities) (WC,% E , I K , ZK). Vacuum equipment ( 6 K , 7 K ) . Valves ( i 9 B , 20E,I K , WK, 6 K ) . Variable costs ( 1 K ) . Vegetable oil refining (22G). Ventilators ( 6 K ) . Venture-worth ( S F , 4F, S F , 7 K ) . Vessels (See also Tanks, storage). Rubber-lined ( S O A ) . Steel, pressure ( i $ A , I 7 A , M A , @ A , ZOE, IK-SK, 6 K , 7 K ) . Vinyl acetate manufacture (SWG). Vinyl chloride manufacture (SG, SWG). Vinyl stearate manufacture (41G). Vitamin Biz manufacture (38G). Wages. See Labor rates. Walkways ( l K , 6 K ) . Walls (7C, I K , 6 K ) . Warehouses (ZC, 1 K ) . Waste disposal (ZC, lOC, l K , 7 K ) . Water ( l K , 2 K s 7 K ) . Water Coolers (34A, aC, 6 K ) . Cooling ( 1 3 2 ) . Demineralization (8C, i i C , I7C, 2 K , 6 K ) . Distilled ( i K ) . Distribution ( 2 C ) . From the sea ( I I G , S I C ) . Requirements per unit product, various products (WK). Softening. See Water, demineralization. Treating. See Water, demineralization. Wax manufacture. See Rice wax. Weight-volume conversion ( 7 E ) . Windows (6K). Wire ( 6 K ) . Working capital. Sce Capital, working. X-ray inspection ( 6 K ) . Yard improvements.
See Site preparation.
(16A) Fort, M. W., Chem. Eng. Costs Quart. 3, 36-7 (April 1953) Metallographic equipment. (17A) Funk, W. H., Petroleum Processing 10, 1364-7 (1955) Pressure vessels. (15A) Gery, W. B., Chem. Eng. 62, 225-33 (June 1955) Thickeners. (19A) Gitzendanner, F. A., Proc. Am. Petroleum Inst., 111, Refining 34, 164-7, 179-55 (1954) Tanks. (20A) Hardy, W. L., IND.ENG.CHEW47, 73A-74A (October 1955) Spray drying. (21A) Harris, W. B., Mason, M. G., Ibid., 47,2423 (1955) Air filters, (22A) Katzen, R., Chem. Eng. 62, 209-12 (November 1955) Tower trays. (23A) Kohlins, W. D., Englander, H. P. Chem. Eng. Progr. 52 45F-45F (February 1956) Evaporators. (24A) Kriegel, P., Chem. Eng. Costs Quart. 5, 36-54 (April 1955) Filter presses. (25A) LaPointe, J. R., Chem. Eng. 62, 206 (February 1955) Tanks. (26A) Lapple, C . E., Chem. Eng. Progr. 50, 283-7 (June 1954) Filters, air and gas. (27.4) Lapple, W . C., Clark, W. E., Dybdal, E. C., Chem. Eng. 62, 177-200 (November 1955) Dryers. (28A) Lennon, J. J., Chem. Eng. Costs Quart. 5 , 65-8 (July 1955) mixers. I., Finn, R. K., Chem. Eng. Progi. 51, 223-6 (May 1955) Vessels. (31A) Lynn, C. V., Oil Gas J . 53, 104-6 (March 14) 111-4 (April 11, 1955) Tanks. (32A) Lynn, C. V., Petroleum Eng. 27, D13-D21 (September 1955) Tanks. (33A) Lynn, C. V., Petroleum Processing 10, 361-5 (March 1955) Tanks. (34A) Munro, J. D., Petroleum Eng. 27, C35-C50 (January 1955) Heat exchangers. (35A) Nelson, W. L., Oil Gas J . 54, 127 (Nov. 7, 1955) Vessels, tanks, etc. (36A) Ibid., p. 257 (Nov. 21, 1955) Heat exchangers. (37A) Ibid., p. 137 (Dee. 5, 1955) Tanks. (35A) Nucleonics 13, 92-4 (March 1955) Air filters. (39A) Petry, J . IC., Chem. Eng. Costs Quart. 5, 60-4 (July 1955) Solids blender. (40A) Rearick, J. S.,IND.ENG.CHEM.47, 987-90 (May 1955) Pilot plant equipment. (41A) Russell, R. J., Chem. Eng. Costs Quart. 5, 96-104 (October 1955) Dryers. (42A) Smith, I. J.. Industrial Chemist 31, 602-6 (December 1955) Solid-air separators (British). (43A) Stern, A. L., Chem. Eng. Costs Quart. 5, 105-9 (October 1955) Size reduction equipment. (44A) Wilson, N. G., .ASME Paper 54-PET-34. Mixers. (45A) York, 0. H., Chem. Eng. Progr. 50, 421-4 (August 1954) Liquid-air separation. (46A) Younger, A. H., Chem. Eng. 62, 201-2 (May 1955) Vessels.
BIBLIOGRAPHY
Unit Operations-Investment
and Operating Cost Data
(1A) Anderson, E. D., Flaxbart, E. W., Petroleum Refiner 34, 15963 (January 1955) Heat exchangers. (2A) Apt, J., Jr., Chem. Eng. Costs Quart. 5, 75-7 (July 1955) Gas filters. (3A) Baker, D. F., Chem. Eng. Progr. 51,399-402 (September 1955) Low temperature purifications. (4-4) Beaton, S . C., Taxter, P. A., ASME Paper 54-A-I28 [abstract Mech Eng. 77, 261 (March 1955) ] Heat exchangers. (SA) Beekley, W. C., ASME Paper 54-A-179 [abstract Mech. Eng. 77, 262 (March 1955) ] Heat exchangers. (6+4) Bell, G. E., Martin, P. E., T a p p i 36, 38A--50A (September 1953) Bark removal. (7A) Bullock, H. L., Chem. Eng. 62, 185-90 (June 1955) Wet screens. (SA) Campbell, J. >I., Oil Gas J . 53, 107-11 (March 14, 1955) Oilgas separators. (99) Ibid., 54, 120-8 (Sept. 12, 1955) Towers. (10-4) Chem. Eng. 62, 116, 118 (March 1955) Condensers. (11A) Cichelli, M. I., Brinn, M., ASME Paper 54-A-125 [abstract, Mech. Eng. 77, 261 (March 1955)] Heat exchangers. (l2A) Corrigan, T. E., Young, E. F., Chem. Eng. 62,211-14 (December 1955) Reactors. (13A) Dickey, G. D., Chem. Eng. Costs Quart. 5,4-16 (January 1955) Liquid filters. (14A) Ellingen, W. E., ASME Paper 54-A-127 [abstract Mech. Eng. 77, 261 (March 1955)l Condensers. (15A) Flood, J. E., Chem. Eng. 62, 217-27 (June 1955) Centrifugal separators.
May 1956
Auxiliary Equipment-Investment
and Operating Cost Data
(1B) Bach, N. G., Chem. Eng. Costs Quart. 5, 17-22 (January 1955) Piping. (2B) Boe, C. F., Chem. Eng. 62, 206, 205 (April 1956) Piping. (3B) Downs, G. F., Tait, G. R., PetroleumEng. 26, D12-Dl9 (1954) Annotated reference, Piping. (4B) Hardy, W. L., IND.ENG.CHEM.47, 79A-82A (June 1955) Piping. (5B) Hudson, W. G., “Conveyors and Related Equipment,” Wiley, New York, 1954. (6B) Jorgensen, R., Chem. Eng. Costs Quart. 5,84-95 (October 1955) Fans. (7B) King, R. H., Oil Gas J . 54, 119-20 (Aug. 1, 1955) Pumps. (8B) Kristal, F. A., Annett, F. A . , “Pumps,” 2nd ed., McGraw-Hill, New York, 1954. (9B) Lundeen, R. W., Clark, W. G., Chem. Eng. 62, 189-90 (August 1955) Pump installation. (10B) Xelson, W. L., Oil Gas J . 54, 112-13 (July 18, 1955) Pumping. (11B) Ibid., p. 130 (Sept. 5, 1955) Tubes. (12B) Seymour, R. B., Chem. Eng. 62, 250-92 (June 1955) Valves. (13B) Smith, 0. A., Petroleum Refiner 34, 136-9 (January 1955) Cnmnressors. A------
(14B) Stin-kiewicz, E. J., ASME Paper 54-A-260 [abstract Mech. Eng. 77, 256 (March 1955)] Stacks. (15B) Stankiewicz, E. J., Chem. Eng. 62, 239-44 (June 1955) Stacks. (16B) Wallis, S.J. J., Chem. & Process Eng. 36, 397-5 (November 1955) Instrumentation. (17B) Zimmerman, 0. T., Lavine, I., Chem. Eng. Costs Quart. 5 , 75-9 (July 1955) Pipe and fittings.
INDUSTRIAL AND ENGINEERING CHEMISTRY
939
Utilities and Off-site Facilities-Investment
and Operating Cost
Argintar, H., Petroleum Refiner 34, 148 (October 1955) Power lines. Bauman, H. C., C h e m E n g . Piogr. 51,455-503 (January 1955) All auxiliaries. Chem. Week 76, 56-60 (Feb. 19, 1954) Power. Elam. J. B., Oil Gas J. 54, 139-45 (Oct. 10, 1955) Auxiliaries, pipelines. Eng. News-Record 155, 212-18 (Sept. 29, 1955) Buildings. I b i d . , p. 230. Parking lots. Ibid., p. 232. Walls. Forbes, AI. C., Petroleum Eng. 47, C34-C42 (September 1955) Water softening. Hangs, F. E., Petroleum Re.finer 34, 140 (August 1955) Fuel. Henltel, H. O., Cheia. E n g . P r o g i . 51, 551-4 (1955) \Taste disposal. Kunin, R., AIcGarvey, F., ISD.ENG.CHEM.47, 1230-5 (June 1955) Water softening. Lachner. E. J . , XSAIE Paper 54-F-28 [abstract ,Ilech. Eng. 76, 1015 (December 1954) ]Steam generators. Lichtenstein, J.. Sprague, B. C . , ASAIE Paper 54-SA-37. Cooling water. Kelson, W. L., Oil Gas J . 53, 134 (Feb. 28, 1955) Refrigeration. Ibid., p. 140 (JIarch 14, 1955) Oil. Shoenig, L. TV., Factory Management and Maintenance 113, 111-13 (October 1955) Transformers. Skold, R. T’., Wilkes, J. F., ISD. ESG. CHEX.47, 90-6 (Jannary 1955) Water purification. Estimation of Manufacturing Cost Items-Data
and Techniques
33, 75-6 ( J dnthony, R.N., ,yarvard nztsiness ~~~i~~ 1955) Depreciation. B~~~~~of Labor Statist,ics,c.S.nept.of ~ ~,qvage b struc~ ture, Industrial Chemicals,” Ser. 2, KO. 8 7 , 1952. Area wage data. Ibid., “Directory of Community Wage Surveys--1948-54,” 1954. Source of area wage data. Business Week 98-104 (Jan-22, 1955) Depreciation. Chem. Eng. Progr. 51, 385-93 (September 1955); correspondence, pp. 10. 18 (Sorember 1955) Alaintenance. Che?n. Week 74, 28-9 (June 26, 1954) Fringe benefits. Crump, H . , Chemistry & Indlistly 49, 1492-3 (Dee. 4, 1954) Depreciation (Britain). Eisner, R., Harraid Biisi)iem R e & w 33, 66-74 (January 1955) Depreciation. Glaua, R. L., Chem. Eng. P r o g r . 51, 122-5 (March 1955) Maintenance. Grant, E. L., Sorton, P. T., Jr., “Depreciation,” revised printing, Ronald Press, New York, 1955. Groppe, H., Chem. Eng. Progr. 51, 81F-84F (February 1955) Chemical transportation. Laird, L., Petroleum ReAner 34, 98-9. 192-3 (February 1955) Fringe benefits. Lawrence, A. E., Chem. EiLg. Prog?. 51, 227-31 (AIay 1955) Depreciation. Pruett, C. E.. IKD.ENG.CHEV. 47, 1196-8 (June 1955) Drums. Schmartz, P., Peiroleunh Eng. 27, D31LD35 (1Iay 1955) Depreciation. Smith, G . A., Chem. Eng. 62, 193-4 (February 1955) llaterials handling. Stanley, W. F., “Kew Rapid Tax Depreciation,” PienticeHall, S e w York, 1955. Stratmeyer, R. J., Chem. Eng. 62, 173-8 (September 1955) Maintenance. Strong, A. K., I b i d , 62, 178-80 (.luguat 1955) Chemical transportation. Terborgh, G., “Realistic Depreciation Policy,” Donnelley Br Sons, Chicago, 1954. Thoen, J . O., Petroleum Refine, 33, 183-5 (Sovemher 1954) Xaintenance. Thompson, G. C., K a t s o n , J. H., Buainess Recoid 12, 206-11 (June 1955) Administrative expense. K a r d , D. G., ISD.ENG.CHEM.47, 1186-8 (June 1955) Chemical transportation.
Techniques for Improving Product Cost and Investment Estimates (1E) Abruzai, A., Engineering Economist 1, 1-15 (June 1955) Linear programing.
940
@E) Barish, iY.S . , Ibid., 1, 13 (Fall 1955) -4lternative risk comparison. (3E) Bertetti, J. W.,PetroZeum Refiner 34, 134-7 (hIarch 1955) Optimum run-length determination. (4E) Bierwert. D. V., Krone, F. A.. Chem. E n g . 62, 191-7 (December 1955) Plant locations. (5E) Business W e e k 102-6 (Jan. 15, 1955) Accounting for inventory. (6E)Chem. Eng. 62, 120-4 (February 1955) Punched-card compilation. (7E) Chem. Processing 18, 186 (Narch 1955) Weight-volume conversion. (8E) Chem. Week 76, 58-62 (Jan. 29, 1955) Punched-card compilation. (9E) Crane, R. R., Brown, F. B., ASME Paper 54-F-1 [abbreviated in Mech. E7ig. 76, 999-1000, 1009 (December 1954)J Theory of failure to minimize maintenance. (10E) Faassen, J. W., AIChE, Western S e w York Section, April 14, 1955, Predesign capital estimating. (11E) Gitaendannor, F. A,, J . R i g . Edzic. 46, No. 2, 182-9 (October 1955) Alternative risk comparison. (12E) Gitzendanner, F. A,, Eng. Economist 1, 11 (Fall 1955) Alternative risk comoarison. (13E) Gore, 1%’.L., k C h E Cost Estimation Symposium, Oct. 20 1955. Determining range of uncertainty. (14E) Harkney, J. W.,Robertson, W ,E., Power Eng. 59, 69-7h (Kovcinber 1955) Genoial method. (151.:) Hatch, A . C., Zimmerman. 0. T , Chem. Eng. Costs Quart. 5, 69-74 (July 1955) Analyzing actual compared t o estimate. (16T:) Hill, R. D., Petrolevm Refirier 34, 139-42 (June 1955) Somographs. (l7E) Joffe, J. D , Chem. Eng. 62, 195-8 (A‘iplll1955) Partial capacity ooeration (18E) Johnstone, R.E., Chein. Process Ew. 36, 19-21 (January 1955) Predesign capital estimating (British), (19E) Johnstone, Trade ~ ~ ~ E., Chem. ~ ~ J . 135, ~ 1061-3~ (Oct. 2~2 , 1954) Predesign capital estimating (British). ~(20E), Johnstone, R. E., T r a n s . I n s t . Chem. Eng. ( L o n d o n ) 32, 151-66 (1954) Predesign capital estimating (British). (21E) NcKenaie. G. R., Chemistiy dl: Indzistry 49, 1438-41 ( S o v . 20, 1954) Application to financial control. (22E) Meij, J. L., J . IndustTial Economics 1, 132-9 (April 1953) Criticism of usual break-even chart,s. (23E) Mitten, L. G., En,g. Econovbist 1, 12 (Fall 1955) Alternative risk comparison. (24E) Odasz, I?. B., Jr., Petmdeum Re,finer 34, 143-7 (June 1955) Statistical techniques. (251.:) Pratt, A . W.,ISD. Esa. CHEM.47, 35.4-38d (March 1955) Keviem- of estimating procedures. (2GE) Ilothschild. R. lI., Kircher, P., J . a4ccoz~nt. 100, 51-0 (September 1955) Working capital. (27E) Rucker, A. W ~ Harvard , Business Reoiew 33, 08-80 (Yept.Oct. 1955) Break-even charts. (281.:) Sherwood. P. W..Oil Gas J . 48. 81-4. 95 ilIarch 9. 1950) Cost-size relationship. (29E) Smith, R. B., Dresser, T., Che7n. Eng Progr. 51, 544-6 (1955) Incremental savings analysis in desizn. (30E) Stanlg, A . L., Mech. Eng. 77, 778-81 (September 1955) Iteducing intangibles t o numerical values. (31E) Steffens, L. R., AIChE Cost Estirnat,ion Sgmposiuni, KenYork, Oct. 20, 1956 [to be published Chem. Eng. Progr. (31ny 1956)l Statistical error analysis. (32E) Sweet, E. R., Ibid., [to be published Chem. Eng. P r o g c ( l l a p 1956) ] Manufacturing costs and techniques. (33E) Tucker, A. E., Ibid., Linear programing. Techniques for Expressing Profitability (1F) Chem. E 7 ~ g .S e w s 33, 3676-9 (Sept. 5 , 1955) Du Pont’s chart system for return on investment. (2F) Dean, J., J. Finance 8, 119-28 (May 1953) Interest rate of return by discounted cash flow. (3F) Happel, J.. AIChE lectures t o New Jersey Section, Fall 1954. Economic balance. (4F) Happel, J., Chem. Eng. Progr. 51, 533-9 (December 1956) Venture-worth estimation: Dresent value of earninlrs a t cost of capital. (SF) Jelen, F. C., AIChE Cost Estimation Symposium, New York, Oct. 20, 1955 [to be publijhed Chem. Eng. Progr. (May 1956) ] Capitalized cost. (6F) Jelen, F. C., Chem. Eng. 62, 181-8 (August 1955); correapondence, pp. 350-3 (December 1955) Capitalized cost. (7T) Lammers, G. C., Jelen, F. C., Chem. En0 62, 183-4 (Decemher 1955) Capitalized vs. annual cost.
INDUSTRIAL AND ENGINEERING CHEMISTRY
I
VOl. 45, No. 5
COST ESTIMATION REVIEW (8F) Lorie, J. H., Savage, L. J., J . Business 18, (October 1955) Present value of proposed investment a t cost of capital. (9F) Reul, R. I., Factory Management and Maintenance 113, 92-6 (October 1955) Profitability index by interest rate of return. (10F) Rohleder, G. V., World Oil 141, 50-3, 66 (September 1955) Interest rate of return by discounted cash flow. (11F) Scheuble, P. A , , Haraard Business Review 33, 81-94 (Sept.Oct. 1955) Equipment replacement determination nomograph, relating savings, investment, minimum desired interest rate of return on investment, and years t o recover investment plus interest. (12F) Yanagisawa, E., Chem. Eng. 6 2 , 185-6 (January 1955) Nomograph for pay-out time.
Estimated Chemical Product Data-Investment Operating Costs
(24G)
(25G) (26G) (27G) (28G)
(29G) (30G) (31G) (32G)
(33G) (34G) (35G)
and
Barr, F. T., Jahnig, C. E., Chem. Eng. Progr. 51, 167-73 (A4pril1955) Fluid coking. Baumann, G. P., Smith, 11,R., Proc. Am. Petroleum Inst. 111, Refining 34, 295-300 (1954) Isobutylene. Blaw-Knox Co., “Manufacture of Ethylene and Its Major Derivatives in Oklahoma,” Oklahoma Planning & Resources Board, Industrial Development Division, Oklahoma City, 1955. Bogart, RI. J. P., Schiller, G. R., Coberly, C. J., Petroleum Processing 8, 377-82 (March 1953) Acetylene. Bone, W.R., J . A g r . Food Chem. 3, 663 (August 1955) Liquid fertilizers. Chem. Eng. 62, 124, 126 (March 1955) Fatty alcohols. Ibid., pp. 314-16 (June 1955) Ozone. Chem. & Process Eng. 36, 390-2 (h’ovember 1955) Sulfuric acid (Australia). Chem. Week 71, 21-8 (@ct. 11, 1952) Chlorine, caustic, soda ash. Ibid., 72, 46-54 (May 23, 1953) Ethylene oxide. Ibid., 74, 38-44 (June 12, 1954) Water from the sea. Crockett, L. O., Oil Gas J . 53, 162-79 (April 18, 1955) Ethylene. Duff, B. S., Chem. Eng. Progr. 51, l2J-l6J (1955) Ammonia. Duff, B. S., Petroleum Processing 10, 223-8 (1955) Ammonia. ESG. CHEX.47, 1408-11 Duffey, H. R., Wells, P. 4.,IND. (July 1955) Furfural. Eickmeyer, A. G., Marshall, W. H., Chem. Eng. Progr. 51, 418-421 (September 1955) Ammonia. Fair, J. R., Perkins, T. B., Rase, H. F., Petroleum Refiner 34, 185-9 (Kovember 1955) Ethylene and propylene. Foskett, N. L., Foster, R. C., Ibid., 32, 116-21 (September 1953) Ethane. Grisenthwaite, A. T., Chem. Trade J . 137, 1225-7 (Nov. 4, 1955) Hydrogen: abstract of a paper to be published in Journal of Institution of Chemical Engineers (British). Hanson, A . hl., Bailey, T. A, Illalzahn. R. C., Corman, J., J . Agr. Food Chem. 3, 866-72 (October 1955) Alcohol. Happel, J., Marsel, C., Chem. Ind. Week 68, 17-26 (April 28, 1951) Acetylene. ENG.CHEM.47,63A-66‘4 (December 1955) Hardy, W. L., IND. Peanut oil. Ibid.. DD. 79.4-8OA (-4oril 1055) Synthetic detergents. Ihid., 79-G81A (ALgust 1955) Soluble coffeeHill, E. F., Wilson, G. R., Steinle, E. C., IND. ENG.CHEM.46, 1917-21 (September 1954) Fatty alcohols. Ilornaday, G. F., Petroleum Refiner 32, 130-4 (September 1953) Butadiene. Industiial Chemist 31, 327-34 (July 1955) Butadiene. IND.ENG.CHEM., “Modern Chemical Processes,” vol. 2, Ileinhold, S e w York, 1952. Four products. Ibid., “Modern Chemical Processes,” vol. 3, Reinhold, New York, 1954. Seven products. Homer, C., Winger, A. G., Bodamer, G. W., Kunin, R.. IND. ENG.CHEX.47, 1121-9 (June 1955) Pickle-liquor recovery by ion exchange membranes. Ionics, Inc., “Results of Selected Laboratory Tests,” Research & Development Report No. 1, Saline Water Conversion Program: U. S. Dept. of Interior (1954) Water from sea. Isard, W.,Schooler, E. W., “Location Factors in the Petrocheniical Industry,” U. S. Dept. of Commerce, Washington, D. C., PB111640, 1955. Icellogg Co., h1. W., “Synthetic Ammonia-Four Basic Plant Types,” Xew York, 1955. Ammonia. Ledford, R. F., Hesler, J C., IKD.ENG. CHEM. 47, 83-6 (January 1955) Chromium from wastes. Lummus Co., Petroleum Refiner 32, 154 (September 1953) Ethylene oxide and glycol.
May 1956
pi.
Xoddings, C. R., Heath, S. B., Corey, J. W., ISD. ENG.CHEI,~. 47, 1373-6 (July 1955) Butadiene. Petroleum Processing 10, 1927-9 (1955) Butadiene and butenes. Pfeifer, V. F., Vojnovich, C., Heger, E. K,, IND. ENG.CHElf. 46, 843-9 (May 1954) Vitamin B12. Pfeiffer, C., Sandler, H. J., Pstroleum Refiner 34. 145-52 inlay 1955) Ammonia. Pominski, J., Decossas, K. &I., Eaves, P. H., Vix, H. L. E., Pollard, E. F., IND. ENG.CHEM.47,2109-11 (October 1955) Rice wax. Redfield, C. S.,Port, W. C.. Srvern, D., Ibid., 47, 1707-10 (September 1955, Correction 2379, November 1955) Vinyl stearate. Schofield, B. P., Chem. Eng. 62, 185 (October 1955) Chlorine and caustic. Sills, M. W., Doty, H. O., “Detergents, Emulsifiers, and Emulsion Products as Market Outlets for Fats and Oils,” U. S. Dept. of Agriculture Marketing Research Report NO. 46 (June 1953) Manufacturing cost estimates on detergents and emulsifiers. Tonn, W. H., Chem. Eng. 62, 186-90 (October 1955) Urea. Updegraff, N. C., Petroleum Refiner 32, 196-201 (September 1953) Hydrogen cyanide. Updegraff, N. C., Reynolds, J. C., Ibid., 32, 163-7 (September 1953) Acetvlene. Van Dyke, B. H., Dougherty, M7. J., Chem. Eng. Progr. 51, 157-61 (April 1955) Oxygen. Weaver, T., Chem. Eng. Progr. 49, 35-9 (January 1953) Acetylene. Weaver, T., Petroleum Refiner 32, 151-6 (May 1953) Acetylene. Wiegand, R. A., Chem. Eng. Progr. 51, 199-204 (A4pril1955) Acetylene.
Estimated Petroleum Refining Data-Investment Operating Costs
and
(IH) Abbott, M. D., Liedholm, G. E., Sarno, D. H., Oil Gas J. 54, 92-4 (July 18, 1955) Desulfnrization. (2H) Abbott, M. D., Liedholm, G. E., Sarno, D. H., Petroleum Refiner 34, 118-22 (June 1955) Desulfurization. (3H) Adams, N. P., Price, W. J., OiL Gas J . 51, 300-2 (March 23, 1953) Flashing, decarbonizing. (4H) Berg, C., Mech. Eng. 77, 19-22 (January 1955) Reforming. (5H) Berg, C., Proc. Am. Petroleum I n s t . , 111, Refining 34, 34457 (1954) Reforming. (6H) Cameron, D. F., Weaver, R. T., Petroleum Refiner 34, 161-4 (Julv 19551 Reformine. (7H) Grate,-H. W:, Hensel, f ,Sterba, AI. J., Oil Gas J . 53, 233-9 (April 4, 1955) Reforming. (8H) Grote, H. W., others, Petroleum Processing 10, 495-8 (April 1955) Reforming. (9H) Grote. H. W., others, Petroleum Refiner 34, 116-20 (April 1955) Reforming. (10H) Gumaer, R. R., Raiford, L. L., Oil Gas J . 54, 119-23 (ilug. 6, 1955) Reforming. (11H) Guthrie, V. B., Petroleum Processing 10, 1158-204 (1955) Reforming, aromatics recovery. (12H) Hunter, W. K., Petroleum Refiner 34, 145-7 (September 1955) Reforming. (13H)Laszlo, T. S., Petroleum Refiner 34, 115-16 (January 1955) Desulfurization, (1413) McAfee, J., Montgomery. C. 1%’. Hirsch, J. h’.,Horne, W.A., Summers, C. R., Petroleum Refiner 34, 156-62 (hlav 1955) Desulfurization. (15H) Nelson, W. L., Oil Gas J . 54, 117 (dug. 1, 1955) Refining. (16H) Ibid., 54, 129-30 (Sept. 5, 1955) Refining. (17H) Noll, H. D., Burtis, T. A.. Dart. .J. C.. Petroleum Refiner , - 32, 113-16 (May 1953) Reforming. (18H) Noll, H. D., Schall, J. W.,Craig, R. G.. Stevenson, D. H., Oil Gas J . 53, 102-5 (March 28, 1955) Reforming. (19H) Oil Gas J . 53, 166-7 (March 21, 1955) Alkylation. (20H) Peters, W. D., Rogers, C. L., Petroleum Refiner 34, 126-8 (September 1955) Alkylation. (21H) Sittig, M., Warren, W.. Ibid., pp. 230-80. Reforming. (22H) Steel, R. A., Bock, J. A , Hertwig, W. R., Russum, L. W., Petroleum Eng. 27, C25-36 (February 1955) Reforming. (23fI) Steel, R. A., Bock, J. A., Hertwig, W. R., Russum, L. ’v[T., Proc. Am. Petroleum Inst., I I I , Refining 34, 327-36 (1954) Reforming. (24W) Weil, A. H., Zbid.,27, D14-Dl8 (July 1955) Gas dehydration. (25H) Winslow, W. H., Weikart, J., Petroleum Refiner 34, 220-6 (September 1955) Refining.
INDUSTRIAL AND ENGINEERING CHEMISTRY
94 1
Cost Index Data-Equipment,
Labor, Construction
Chem. Eng. 62, 178 (IIarch 1955) Equipment indexes. Chem. Eng. Progr. 51, 33 (December 1955) Infiation. Eng. News-Record 155, 89-152 (Sept. 29, 1955) Indexes. Selson, W.L., Oil Gas J . 53, 80 (Jan. l o ) , 131 (April 11); 54, 121 (July 4), 145 (Oct. 3, 1955) Labor, equipment, construction indexes. I b i d . , 53, 132 (April 11); 54, 122 (July 4 ) , 146 (Oct. 3, 1955) Basis costs for indexes. Ibid., 53, 107 (Jan. 10. 1955) Index system. Ibid., 53, 109 (May 2, 1955) Electrical equipment indexes. Ibid., 54, 107 (June 27, 1965) Tool index. Oil Gas J . 53, 261-2 (Jan. 31, 1955) Labor and equipment indexes. U. S. Dept. of Commerce, Washington, D. C., “Construction Volume and Costs-1915-54,’’ (Dec. 16, 1954) Labor and construction indexes.
General-Books
and Compilations
(1K) Aries, R. S., Newton, R. D., “Chemical Engineering Cost Estimation,” hIcGraw-Hill, New York, 1955. Data compilation and review of estimating methods. (2K) Chem. Eng., “Data and lIethods for Cost Estimation,” Parts 1 and 2, XcGran--Hill, Kew York, 1953. Fifty articles covering 1946-53 (subject index available from J. B. Weaver). (3K) Ibid., Part 3, 1954. Seventeen articles covering 1953-54. (4K) Fiske, \.Ti. P., Beckett, J. A., “Industrial Accountant’s Handbook,” Prentice-Hall, Xew York, 1955. Sections 011 price forecasting, replacement of equipment, risk and investment, pricing, etc. (6K) Ireson, W. G., Grant, E. L., ”Handbook of Industrial Engineering and Management,” Prentice-Hall, S e w York, 1955. Sections on engineering economy, etc. (6K) Sclson, W.L., “Cost-imating,” Oil Gas J . , 1949. Sixty-txo articles covering 1948-49. (7K) Schweyer, H. E., “Process Engineering Economics,” LIcGrawHill, S e w York, 1955. Review of engineering econoinics from chemical engineer’s viewpoint: some cost data. (8K) Steinberg, fir. J., Glendinning, W.,“Engineering Economics and Practice,” 4th ed., W.Glendinning, Bayside, S.Y . , 1955. Reviews engineering economics as preparation for professional engineering examination.
Bibliographies and Subject Indexes (1L) Barnet, TV. I., U. S. Bureau of ;\lines Inform. Circ. 7516, 1949. Bibliography of investment and operating costs for chemical and petroleum plants-1930-48. (2L) Harton, E. E., Tisot, P. R., I b i d . , 7705, 1955. Supplemental bibliography on investment and operating costs for chemical and petroleum plants, September 1948-June 1952. (3L) Weaver, J. B., Chem. Eng. 61, 381-3 (April 1954) Subject index t o cost data in Perry’s Chemical Engineers’ Handbook.
942
(4L) Weaver, J . B., Ciiem. E n g . Coats Quart. 4, 86 7 (July 1954) Subject index 1952-54. (5L) Weaver, J. B., Cltem. Eng. 61, 185-93 (October 1954) Bibliography and subject index, 1926-53. (6L) I b i d . , 62, 247-52 (June 1955) Xnnotated bibliography and subject index for 1954. Miscellaneous (1X) Bierwert, D. T.. Krone, F. A., Chcm. Eng. 62, 207-10 (July 1955) Standard costs. (2M) Brackett, TT. S., IXD.ENG.CHEJI. 47, 27A-30.1 (May 1955) Plant design and estimation function; typical investment percentages. (3M) Butler, C. A., Ci’em. Eng. 62, 171-4 (January 1955) Conservatism 2s. realism. (4M) Chartener, W. H., Chem. Eng. 62,326-32 (June 1955) Pay-out times by industry. (531) Chem. Eng. 62, 130 (January 1955) Formula for maxixiiiin worth-while research on a given project. (6M) Chem. Eng. News 33, 2564 (June 13, 1955) 1,Iake-or-burdecision for raw materials. (711) Ibid., p. 3606 (Aug. 29, 1955) Incorporation of invcst’nci~t capital in computing research costs. (831) Chem. Week 76, 28 (May 28, 1955) Productivity. (9M) I b i d . , 77, 32 (Kovember 26, 1955) Sources of financing capital. (10M) Corley, H. 31. (editor), “Successful Commercial Cliemival Development,” Wiley, New York, 1954. Relates estimation to commercial product development. (1111) De Lilliac, R. G., Lugol. G., Petroleum Eng. 27, B40-Bfi2 (July 1955) Data on costs of explorat,ion and productiori, interest rate of return. (12x1) Eng. Economist, Stevens Institut,e of Technology, Hoboken, K.J. (published by Engineering Economy Committee, I r u . SOC.Eng. Edue., Arthur Lesser, Jr., committee chairman). Quarterly for original publication, reprinting and discu9sion of chemical and other engineering economics. (131,I.I) Melman, S., Sei. American 193, 33-5 (July 1955) Produetivity. (14M) ;\Iontross, C. F., Encyclopedia of Chemical Technology, TOI. X, pp. 696-711, Interscience, New York, 1953. Improvement of cost analysis by pilot plant studies. (15M) Parkhurd, G. L., ISD. EXG. CHEM. 47, 45-4GA (January 1955) Importance of economic thinking. (1621) Rosen, E . H., Regnier, A. L., AIChE Cost Estimation Symposium, S e w York, Oct. 20, 1955 (to be published Chem. Eng. Progr.) Methods of economic analysis of research. (17M) Schuman, S. C., Chem. Eng. 62, 180-2 (March 1955); correspondence, pp. 337-9 (July 1955) Chemical pricing as a function of annual quantity. (18N) Schuman, 8. C., Ibid., 62, 173-6 (May 1955) Plant size 1 s . product inanufactuiing cost. (19RI) Tallman, J. C . , S A C X Bull. 36,1654-62, August 1955. T’alne in succession of estimates during research. (2OXt) Terry, L. F., Oil Gas J . 54, 168-76 ( S o v . 21, 1955) Sources of financing capital. (21bI) Zabel, H. W., AICliE Cost Estimation Symposium, Nevi Yo1 k, Oct. 20, 1955 (to be published Chem. Eng. Proor., 1 I a r 1956) Chemical pricingas a function of annual quantity
INDUSTRIAL AND ENGINEERING CHEMISTRY
Vol. 48, No. 5
