JAMES
B. WEAVER
Economic Evaluation Department, Atlas Powder Co., Wilmington 99, Del.
Chemic Profitab
FOR
the chemical estimator, 1956 was highlighted by the presentation by the AMERICAN CHEMICAL SOCIETY and the American Institute of Chemical Engineers of five symposia concerned with economic phases of the chemical business, and by the formation of two groups concerned with engineering estimationthe American Association of Cost Engineers and an Engineering Economy Division of the American Society for Engineering Education. A summary of a February ACS Delaware Valley Regional meeting on diversification ( 7 M )indicated the value of the session (77J,SK, 9M, 72M, 20M) to those attending. A regional ACS meeting in Seattle, Wash., in June again presented some interesting subjects (25A, 37F, 29M), but only one available reprint (25A)and one derivative publication in an AIChE journal (30M). Unfortunately, neither of the symposia was published, or is even, in general, available from the authors as reprints. A book based on a Philadelphia symposium in April (75C,230, 270, 300, 18E, 79J, 7 7 M ) and several scattered articles based on a Los Angeles symposium in February (240,360, 4E) 72E, 33E, 76J, 25J) resulted from the first two AIChE symposia. The third symposium (New York, October) will probably be published during the year (ZC, 260, 22E, 3 2 M , 35M). The Los Angeles symposium benefited by a somewhat narrower subject range than was covered by the other two, “Economic Justification of Process Industry Proj-
936
ects.” Each of the three had a detailed presentation of capital cost estimating (230, 260, 3 6 0 ) ) a subject that should now be sufficiently covered for some time. A paper at each session (78E, 22E, 33E) discussed the newer techniques for profitability estimation which consider the time value of money. An independent society, the American Association of Cost Engineers, was formed (7OM), with over 200 members reported by October 1956. Discussions presented at the first technical session have been published (75B,770); further information can be obtained from John T. Husted, Secretary, P.O. Box 1411, Trona, Calif. While the formation of such a group outside the established scientific societies may seem unfortunate, the group has expressed willingness to cooperate with others. Plans have been made for a first annual meeting in June. For some years the American Society for Engineering Education has had an Engineering Economy Committee (78M), which during 1956 was converted to a permanent division of the society. Its publication has continued to contain stimulating discussions (ZOC, 380, IE, 77E) S J , 5L, 24L). A Symposium on Decision-Making Processes (QL,75L,28L) at the ASEE 1956 meeting indicates concentration on the development of proper techniques and criteria for engineering estimation. The previous annual review (34M) missed two outstanding presentations of interest to cost estimators. In June 1954, a full week of summer school was
INDUSTRIAL AND ENGINEERING CHEMISTRY
held by this Engineering Economy Committee; the proceedings were published (77L), but are now out of print. These 166 pages (mimeographed) contain more stimulating thoughts per page. for this estimator, than anything published subsequently. They discuss the relation of company capital budgeting to estimation (7L), the contribution of national economic studies (27L), the role played by accounting for both the benefit and detriment of engineering economy studies (79L, 26L), and the impingement of operations research techniques on engineering economy (8L. 76L, 77L, 2OL). Reprinting of these proceedings is a possibility. Among the advanced study courses presented by the Charleston, W. Va.. section of the AIChE (27M) was an admirable series on cost estimation in the fall of 1955. Although unpublished and unavailable except in outline form (30, 80, 250, 370, 320, 74E),the presentations reflect the devotion to professional development which must have inspired those connected with this and associated courses. Worth special note is the presentation of “Capital Cost Estimating” by Bauman (30)which, combined with his comprehensive analysis of utility and offsite facilities published last year, would make a worthy permanent volume by themselves. T h e estimating specialty, like many others, is subject to the danger of oversimplification. Surely a bad cost estimate can be as bad as or worse than none
at all, because the strength of an apparently scientific approach is placed behind intuition. Let me cite three instances of oversimplification, two from the pages of this magazine, with the intent not of embarrassing the authors but indicating a few of the dangers to willing authors of working in specialized fields. A brief book on pilot plant practice ( 2 2 0 ) provides no data on pilot plant erection costs but describes a general cost estimating technique which is inadequate. For example, equipment costs published 8 to 10 years ago are mentioned without reference to equipment cost indexes which must be used to correct for inflation since that time. Freight is not considered in ingredient costing. Two items (apparently based on one source) (20, 3 4 0 ) similarly oversimplify the difficult task of cost estimation. T o one who has encountered projects having working capital over 100% of fixed capital, it is distressing to see the “approximate percentage of total cost” for working capital assigned arbitrarily as 10 to 15%. Surely no one would in practice try to estimate costs without some knowledge of the literature, as reflected, for instance, in this and previous annual reviews. However, this article states, “the estimate of equipment costs is a more complex problem. Often this is a piece by piece problem. Inadequate as this method may seem, it is sometimes the only means at the disposal of the estimator.” No literature whatever is cited. Oversimplification also extends to titles. These can be blamed more on the magazine than on the author; one article ( 7 0 ) entitled “How to Estimate Equ5pment Costs” is simply a nomograph for convenient use of the well known sixtenths factor.
Equipment Section A of the bibliography covers processing equipment; Section B covers auxiliary and offsite facilities such as piping, blowers, instruments, utilities, and buildings. The subject of each article is indicated after the reference and the equipment items are indexed alphabetically in the subject index. Publications during the year added little in the way of general correlations of various types of equipment in a single article; Zimmerman and Lavine in a book on laboratory equipment (37A) and an article (38A) presented the broadest range of data. The “Cost-imating” series by Nelson is also a major contribution (27A-23A, 25B-36B, 77C-79C, 2 9 0 , 40F, 8 6 73G, 9H- 7 7H). An unusual item included for general interest is the correlation by Hadley
(78B) of the cost of U.S. and foreign automobilei “after the manner of Williams et d.”
Manufacturing Cost Section C of the bibliography covers articles dealing chiefly with items to be estimated in the manufacturing cost schedule. As usual, a number of informative articles appeared on the subject of depreciation, listed in the subject index. I n particular, articles by Clark (9C)and Dean (70C) propose new depreciation methods which, if allowed by the Government, would give the manufacturer greater leeway in choice of depreciation allowance. A carefully reasoned article by Norton (2OC) indicates how the profitability of a venture may depend on the choice of a depreciation method under the 1954 tax law. Spacek (25C) states that inadequate depreciation allowances during inflation act to hide a company’s real earnings. Considerable attention was also paid to fringe benefit costs (6C, 7C, 77C, 76C) and maintenance (ZC, 3C, 72C, 22C). Typical royalty fees were summarized (5C). The make-us.-buy problem on ingredients was investigated (74C). Lawrence (75C) tackled the knotty problem of overhead allocation.
Estimating Techniques Included in Section D are several techniques and discussions published before 1956 but considered of sufficient interest to present, as they were not included in previous annual reviews. Ackoff ( 7 0 ) approaches the question of bid preparation in terms of balancing the cost of making an error in the bid against the cost of making further studies before bidding. I n a round-table discussion ( 5 0 ) one company reported the use of projections of inflation indexes on equipment costs, so that fixed capital will not be underestimated because of inflation between the times of estimation and construction. A new “Industrial Engineering Handbook” edited by H. B. Maynard contains sections on economic lot size determination (780),estimating procedures ( 3 5 0 ) , and replacement of machinery and equipment (25E). Intracompany pricing has been accorded considerable attention during the year (790, 270,280). Tielrooy ( 3 6 0 ) ,in an article chiefly on capital cost estimating, introduces a new concept wherein certain manufacturing costs are related to fixed investment. No supporting data are presented.
Profitability This review has not previously covered techniques concerned exclusively with
replacement problems; Section E endeavors to do so, along with the more familiar concepts of profitability determination on new investments. In general, a piece of equipment is purchased as more than a mere replacement of its predecessor, but many investments do not involve expansion or new products, Specialized techniques have been developed for both determining whether the time for replacement has come and comparing available replacement alternatives. Industries other than the chemical industry seem to be particularly concerned with such replacement decisions; the Machinery and Allied Products Institute (MAPI) has developed an entire technique of its own (29E) with a specialized terminology and standardized assumptions. Orensteen’s article (20E) is recommended as a description of the MAPI technique and its assumptions without their specialized terminology. The institute is now developing a broader system which will allow more choice of assumptions. Two case studies ( B E , 35E) attempt to clarify the MAPI method. Other techniques for replacement evaluation are those of capitalized cost (77E, 12E), capitalized present value of costs (ZE, 3 E ) , and payout time, including minimum return rate (24E). Turning to the profitability of investments that are not necessarily replacement, return on original investment is described again (73E). One cursory analysis of investment decisions indicates a lack of complete knowledge of the relevant factors t o be considered when new machinery is purchased (37E). Gordon ( 9 E ) compares both payout time and return on average investment to what he calls the true measure of profitability, the interest rate returned to the investor by the investment. A basic source on this latter measure is cited ( 6 E ) . Interest rate of return on investment is recommended in other references (4E, 5E, 78E, 27E, 23E, 33E, 7 4 J ) . Artidles critical of the technique are also presented (22E, 30E, 34E, 25L). Kiser ( 7 4 J ) reports on a survey of 15 oil companies, all of which use payout time; three also study interest rate of return, the method he recommends. For the first time, articles review and compare various methods for expressing profitability (IOE, 74E, 18E, 79E,33E, 34E). Although none are complete and most express some bias, thorough review will improve one’s grasp of the assumptions, advantages, and disadvantages of each method. An article in French (32E) indicates that comparison of profitability techniques is becoming a worldwide sport. Others recommend extension of return on investment concepts to products ( 8 E ) , to departments (75E), VOL. 49, NO. 6
JUNE 1957
937
for inventory analysis (75M), and for analysis of stockholder return (76E).
Chemical Product Data Section F covers cost data on products as various as potato flakes (23F) and nitrogen-15 (36F). Where the subject index indicates data on product “manufacture,” both investment and operating costs are estimated in the reference. Most cost data are still published on major chemical products of long standing, but some data appeared this year on polyurethane ( Z F ) , titanium (78F),detergents from sugar (79F),polyethylene (38F), and radiochemical plants (55F). T h e cost series by Hardy (25F-3OF) has contained some previously unavailable estimates on specialty chemicals, particularly insecticides. Lack of source data and the author’s statements in associated correspondence (23, 2 6 F ) point up the general advisability of including statistical confidence limits with cost estimates. A similar series on basic or intermediate chemical products could be of even broader interest. Potential prospectors are referred to gold processing data (32P). Still, nothing can surpass the fascination of the data on nitrogen-15 (3GF), wherein is proposed a plant to make 50 pounds per day at an investment of only $38,600,000, resulting in a product cost of just over $1000 per pound.
Petroleum Refining The 26 references gathered in Section G were collected purely as a by-product of our study of this cost literature for other purposes. The author would be interested in hearing from anyone interested in gathering and discussing cost data in this field for 1957 and future vears.
Inflation and Cost Indexes Beyond the usual extension of cost indexes for labor, equipment, and construction, Section H includes several interesting discussions of the effects of inflation. The decreasing value of various currencies is expressed as an interest rate ( 6 H ) . Escalation clauses in purchase contracts are considered as an inflationary factor ( 2 H ) . Inflation is said to distort financial statements and profitability calculations (25C, 3H,7H). Replacement studies are extended to allow choice by the capitalized cost technique, including allowance for a constant inflation rate (8H).
Capital Budgeting
For any implemented capital investment decision, cash must be found, and
938
it is obtained at some cost. In Section J are covered determination of the cost of capital, sources of capital, and procedures of capital budgeting before and after the investment decision. While these may not be considered to be within the normal province of the chemical cost estimator, they are a fascinating part of the investment problem. For what does a percentage return on investment indicate, unless you know the cost of capital with which that percentage should be compared? For a succinct discussion of this problem the reader is referred to Soule ( 2 3 J ) . The “cost of capital” is well defined by Small (27J). Chemical Week, in discussing sources of capital, came up with conflicting titles: “Chemical Companies Reduce Their Debt” ( 3 J ) , and “Loans at Popularity Peak” (5J).
processes themselves have been discussed (9L. 75L.28L). In the latter. the incremental approach, highly recommended elsewhere (250, 7J,77J,77M), is criticized as taking the short-range view which may interfere with long-range company plans. The more limited goals of engineering economy have been historically reviewed (7OL)and criticized (9L, 72L, 25L). Other articles have shown the effect on engineering economy studies of changes in the business cycle (5L), proper consideration of accounting data (79L.26L), consideration of salvage and other residual values (22L), consideration of national economics (27L),and their applicability to valuation of obsolescent facilities (73L). Some possible reasons have been presented for the chemical industry’s lack of use of engineering economics (24L).
Research Evaluation
It has been said, and denied with almost equal vehemence, that research projects can be judged by cost and profitability estimation techniques similar to those used just before plant construction. Section K covers 11 discussions of this and related topics. While some companies use formulas and are willing to share them (7R, 70K), other experts maintain that proposed new products with great long run potential, but with costly and time-consuming preliminaries, may be eliminated by such a calculation, as they cannot compete with quick projects of fairly good profitability (77.E)5 K ) . The cost of erection of a pilot plant can be compared with its benefits (4K,7 K ) . Other methods of research budgeting and evaluation of research results are proposed (ZK, 6K, 9K).
Engineering Economy and Operations Research Section L covers other techniques of great use to cost estimators, which were given but brief mention in last year’s review. Many of the presentations covered appeared before 1956; your author can only plead ignorance, as of a year ago, of some of the thought-provoking techniques described in the citations here. The organization (4L), applications (7L), and some of the techniques (ZL, 27L) of operations research have been presented. Application studies on bidding strategy (GL), refinery scheduling (74L,23L),and capital budgeting (3L) have been described. Engineering estimators have been criticized for the narrowness of their value criteria in comparison with those sometimes developed by operations research (8L, 76L, 77L, 2OL). The value criteria and decision
INDUSTRIAL AND ENGINEERING CHEMISTRY
Miscellaneous Section M, Miscellaneous, is included to cover the close association of engineering estimation studies with such fields as product development (79M), market research (3GM),inventory anatysis ( 7 5 M ) , accounting (8M,73M.77M, 37M),plant location (74h1,3 8 M ) , etc., and the converse overlapping of these fields into techno-economics. A survey has been published of the inclusion of engineering economic studies in curricula at 125 engineering schools ( 7 M ) . Bolin (3M) has surveyed the scope and areas of interest of estimates requested from the consulting organization with which he is affiliated. The British book on “Chemical Engineering Practice” edited by H. W. Cremer includes a review of estimation methods (740) and a review of British practices in accounting, costing, and budgetary control ( 4 M ) . Also of assistance to those who may invest in Great Britain is the suggestion of Warner (33M)that American equipment costs are best converted to British terms by a factor of $5 per pound sterling. One essential volume on engineering materials ( 2 2 M ) devotes a paragraph in its preface to costs, including the following: “Cost is an element common to all design . . . The engineer is necessarily cost minded and as a basic first step must consider the over-all materials cost of his product.” Unfortunately, this is the volume’s only reference to costs. This leads to a closing comment. There may seem to be listed here a great many publications of interest to the cost estimator, but many more articles each year are reviewed which should have contained some cost information but do not. One would think that major articles and texts on equipment and chemical
processes would consider some cost information a necessity, but such is not the case. Certainly anyone can bring to mind editions of major texts in the chemical field within the past year which have not contained even enough information to be indexed here. Let us hope the major strides made in the past few years toward inclusion of cost information will continue by converting a major author or two to this principle every year, even
Abandoment of projects ( 2 4 0 , 77J, 76M, 25M). Absorbers. See Towers, fractionating. Accounting (79L, 26L, 4 M , 77M). Acetaldehyde manufacture (39F). Acetylene manufacture ( 2 0 0 , 3 F ) . Aconitic acid manufacture (57F). Acrilan manufacture ( 7 F ) . Agglomerators. See Precipitators. Agitators. See Mixing equipment. Air conditioning (76B). Alcohols, fatty. See Fatty alcohols. Alkylation (8G, 75G, 20G). Aluminum manufacture (8F). Ammonia Fixed investment (6F, 77F, 27F). iManufacture (42F, 43F, 48F, 56F, 57F). Ammonium nitrate manufacture (56F). Amortization. See Depreciation. Annual cost ( I O E , 79E). Appropriation request. See Capital budgeting procedure. Argon manufacture (56F). Aromatics manufacture from coal ( 2 5 0 , 78F, 56F). -Asbestos rope (26B). ASME replacement techniques (79E). Autoclaves. See Vessels. Automobiles ( 78B). Auxiliary facilities. See Service facilities. Ball mills. See Size reduction equipment. Bends, pipe. See Pipe bends, Benzene manufacture (56F). Benzene hexachloride manufacture (28F). Bibliographies (34M). Bid, construction ( I D , 6 0 , 6L, 28M). Blenders. See Mixing equipment. Blowers (38A). Board (26B). Boilers. See Reboilers. Bond model (70L, 25L). Book value (79E, 28E). Break-even charts ( 7 7 0 , 730: 2 5 0 , 5E, 4M\ Refinkg operations (7G). Brick (26B, 511). Bubble cap plates. See Trays, fractionating. Budgeting. See Capital budgeting. Building, cost indexes ( 5 H ) . Buildings ( 3 6 0 , 5H). See also Office buildings. Burden. See Overhead, operating. Business cycle in engineering economy (5L). Business indicators ( 4 H ) . By-products, cost allocation (270, 76F). Capital Cost of (2E, 6E, S J , 77J, 21J, 22J, 235). Fixed. See Estimation methods. Sources of (6E, 7J, 2 J , 3J, 4J, 5 J , 7 5 , 82,16J, 77J, 79J, 20J, 245). Working ( 3 6 0 , 4E, 5 M ) .
if it increases the load on the bibliographer.
Acknowledgment T h e considerable reviewing job involved here has been shared for the past several months by four stalwarts who deserve mention-A. G. Bates, F. S. Lyndall, F. L. MacArtor, and R. J. Reilly.
CaDital budnetinn AllocatioGtechhques (6E, 7E, 77E, 79E, 22E, 70J, 72J, 74J,3L). Appropriation procedures ( 9 J , 70J,77J, 725, 735, 75J, 785, 25J). Capitalized costs (77E, 72E, 26E, 34E,
-__ .
Rim
Carbon dioxide manufacture ( 72F). Cash forecasts ( 5 M ) . Cathodic protection ( 2 8 ) . Caustic soda. See Sodium hydroxide. Cement and block (26B, 36B, 5H). Chambers, settling. See Thickeners. Chemical transportation. See Freight, chemicals. Chloral manufacture (26F). Chlorine manufacture (7F). Fixed investment (40F). Clarifiers. See Thickeners. Classifiers. See Thickeners. Coal (40B). Coking coal ( 2 5 0 , 77F, 56F). Coking, fluid. See Fluid coking. Columns. See Towers, fractionating. Compound interest Annual (26E). Continuous (78E, 23E, 33E). Compressor plants (79B). Compressors (38A, 7B, 22B, 32B, 38B, 46B, 49B, 52B). Computer operation costs ( 6 M , 37M). Use in estimatinq ( 77M). Concrete (36B, 5H). Conservatism (22L, 26L). Construction. See Buildings. Contractor's fee (230). Controllers. See Thermometers, flow, pressure, etc. Converters, electric frequency (34.4). Conveyors (43B, 448). Coolers. See Heat exchangers. Corrosion protection (ZB, 4B, 45B). cost Control ( 2 M , 73M, 28M). Of estimating. See Estimates, cost of preparing. Indexes. See Inflation indexes. Records for estimating ( 6 0 , 750, 3 7 0 , 78L, 24M). Crushers (33A). See also Size reduction equipment. Currency depreciation ( 6 H ) . Currency, foreign, valuation ( 73C, 33M). Dacron manufacture (7F). DDT manufacture (25F). Decarbonization ( 3 7 0 ) . Decision criteria and processes (9L, 75L, 28L). Dehydrators, gas (3G). Demineralized water systems. See Water demineralization systems. Depletion (32M). Depreciation (IC, 4C, 9C, 70C, 17C, 78C, 20C, 23C, 25C, 720, 2 5 0 , 260, 4E, 275, 4M).
Desulfurization (20F, 42F, 2G, 75G, 20G, 27G, 23G). Detergent manufacture ( 79F). Dewaxing crude oil (70G). Disaster risk estimation (23M). Discounted cash flow. See Interest rate of return. Distillation equipment. See Towers. frac- tionating: Diversification ( 7 M , 9M, 72M, 20M). Driers. See Dryers. Drum flaker. See Flakers. drum. Dr ers (79A, 35A, 37A, 38A). &ray ( 8 A ) Vacuum (9A, 38A). Dust collectors. See Filters, air; Precipitators. Dyne1 manufacture ( I F ) . Economic balance ( I A , 75A, 26A, 7 0 . 9D. 700. 7 8 D l Economicfot sGd ( 9 0 , 7 8 0 ) . Economic models (27L). Economics. See Engineering economy. Ejectors, steam jet (74A). Electrical equipment (3B, 37B). See also Power, electric generation equipment. Electronic equipment (24B). Employee benefits (6C, 7C, 77C, 76C, 5H). Engineering economy (ZOC, 7L, 8L, 9L, 70L, 77L, 72L, 73L, 75L, 16L, 77L, 79L, 20L, 24L, 25L, 26L, 27L, 28L, 7 M ) . Entrainment separators (mist extractors) ( 3 A ) . See also Precipitators. Equipment indexes. See Inflation indexes. Escalation (211). Estimates Comparison with actual (77J, 75J, 75L, 28M). Cost of preparing ( 7 0 ) . Reliability of ( 5 0 , 740, 2 3 0 , 250, 260, 320). Scope and usefulness ( 3 M ) . Timing (29M, 30M, 36M). Estimating forms ( 1 7 0 , 2 9 0 , 330). Estimation methods Fixed investment (30, 5 0 , 770, 2 3 0 , 2 6 0 , 2 9 0 , 370, 330, 3 6 0 ) . General ( 2 0 , 8 0 , 740,2 0 0 , 2 2 0 , 3 2 0 , 340, 3 5 0 , 4 E , 27M). Manufacturing cost ( 2 5 0 , 2 7 0 ) . Profitability. See Profitability. Ethylene manufacture (44F, 47F, 53F, 56F, 74G). Evaporators ( 8 4 37A, 38A). Excavation (26B, 36B). Exchangers, heat. See Heat exchangers. Exchangers, Ion. See Ion exchangers. Exhausters. See Fans; Blowers. Fans (38A). Fatty alcohol manufacture (52F). Fertilizer, granulated, manufacture ( 73F. 24F). Superphosphate, manufacture (29F). Fibers, textile, manufacture ( IF). Field office costs ( 2 3 0 ) . Filters Gas and Air (32B). Liquid ( 2 A , 18A, 37A, 38A, 77B). Financial statements (3H). Financing. See Capital, sources of. Fittings, pipe (24.4, 34B). Fixed capital. See Estimation methods. Fixed us. variable costs (7L, 37.44). Flakers, drum (79A). Flanges. See Fittings, pipe. Flow recorder-controllers (23B, 32B). Fluid coking (45F, 75G, 25G). Forecasting (4E, 77E, 27L, 28L). Formaldehyde manufacture (39F). Forms, concrete (36B). Forms for estimating. See Estimating forms. Foundations (75B, 29B, 36B, 260). Freight, chemicals (8C,79C, 27C, 38M). VOL. 49, NO. 6
JUNE 1957
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Fringe benefits. See Employee benefits. Fuel (73B, 40B). Furnaces ( 6 A , 23A, 34A). Gages Pressure. See Pressure gages. Tank. See Level indicator. Game theory ( 3 L ) . Gas (40B). Dryers. See Dehydrators, gas. Plating (4A). Producers (34A). Gasoline recovery from LPG (5G, 22G). Generators, electrical. See Power generation equipment. Glass furnace (6A). Glycerol purification (54F). Gold (32F). Graphical methods (120, 5E, 23E, 24E, 35E). Grinders. See Size reduction equipment. Heat exchangers (7A, 72A, 76A, 77A, 29A, 37A, 38A). Hydrochloric acid investment (40F). Hydrogen manufacture (20F, 35F, 47F, 49#, 14G). Hydrogen cyanide manufacture (56F). Incremental approach ( 2 5 0 , 7 J , 1l J , 28L, 77M). Index, subject. See Subject index. Indexes, cost. See Inflation indexes. Inflation (2H, 3H, 6H, 7H, 8H, 24J, 26L). Inflation indexes, general ( 5 0 , 4H). Construction (SH, 9H, 70H, 77H). Equipment ( I H , 9H). Labor (9H). Infrared analyzers (14B). Ingredients, make-or-buy (14C). Insecticide manufacture (25F, 26F, 28F, 30F). Instrumentation (23B, 3ZB, 51B). See also particular instruments. Instrument board (32B). Insulation for heat (26B, 35B). Insurance ( 2 3 0 ) . Interest compound. See Compound Interest. Interest rate of return on investment (ZOC, 7E, 4E, 5E, 6E, 74E, 78E, 79E, 27E, 22E, 23E, 27E, 30E, 33E, 34E, IOJ, 72J, 745, 235). Inventory (75M). Inventorv valuation (26L). Investmekt other than equipment; usually yo breakdown ( 2 3 0 , 2 9 0 , 3 6 0 , 370). See also Estimation methods. Investor’s method. See Interest rate of return on investment. Ion exchange materials (25A). Ion exchangers (25A). Isomerization, gasoline (75G, 77G, 79G, 26G). , Kettles. See Vessels. Kilns. See Dryers, Furnaces. Labor Indexes. See Inflation indexes. Operating ( 2 5 0 , 270). Rates (73B, 13C, 5H). Laboratory equipment (37A). Level indicator (32B). Lighting ( 5 H ) . See also Power. Lindane manufacture ( 7527). Linear programming (2L, 74L, 21L, 23L). Linings, vessel or tower (5A, 70A). Liquefied gas (liquids from natural gas) (5G, 22G). LPG recovery (5G, 22G). Lumber (25B, 5H). Machine tools (39B). Maintenance (2C, 3C, 72C, 22C, 2 5 0 , 370). Manufacturing cost estimates. See Estimation methods.
940
INDUSTRIAL
MAP1 replacement analysis (7E, 9E, 79E, 20E, 25E, 28E, 29E, 30E, 35E, 70J, 145). Materials Chemical. See Ingredients. Fabrication (4B, 45B, SH,22M). Materials handling (24C, 26C). Mathematical models. See Operations research. Meters. See Instrumentation and meters by name. Meters, level. See Level indicators. Methanol manufacture (250, 39F). Methods of approach to estimating. See Estimation methods. Methyl alcohol. See Methanol. Mist extractors ( 3 A ) . Mixing equipment ( 7 7A). Model plant costs (26M). Mortar (26B). Motors Electric-maintenance (3C). Fluid-driven (48B). Newsprint ( 3 3 F ) . Nitric acid manufacture 122F). Nitrogen-15 (36FI. Nomographs (47B, 7 7 0 , 24E). Nylon 66 manufacture ( 7 F ) . \
I
Obsolescence. See Depreciation. Obsolescent facility valuation ( 73.L). Office buildings ( 76B). Oil, fuel (40B). Operating capital. See Capital, working. Operating costs. See Estimation methods. Operations research (7L, 4L, 6L, 8L, 76L, 77L, 20L). See also Linear programming, Game
Out-of-pocket estimating method. See Incremental approach. Overhead, operating (75C, 2 5 0 ) . Oxygen manufacture (4F, 5F, QF, 14F, 56F). Packaging ( 2 5 0 ) . Packing, tower ( 8 A ) . Painting (50B). Panel board, control (32B). Paper manufacture (37F). Patents. See Royalty. Payout time (payoff period) ( 7 2 0 , 2 0 0 , l E , 9E, 70E, 78E, 79E, 24E, 28E, 37E, 33E, 34E, IOJ, 74J). Phenol-formaldehyde resin manufacture (27F). Phosphoric acid manufacture (58F). Pickle liquor recovery (IOF, 56F). Piling (36B). Pilot plant Economics (4K, 7K). Equipment (37A). Pipe bends (33B). Pipe, cement and clay (26B, 5H). Pipe stills. See Stills, pipe. Piping, process and utility (24A, 38A, 33B, 34B, 2 3 0 , 3 6 0 , 5H). Plant Investment breakdown, %. See Estimation methods. Location ( I F , 74M, 38M). Site. See Site preparation. Plates, fractionating. See Trays. Plating, gas ( 4 A ) . Polyethylene manufacture (38F). Polyurethane manufacture (2F). Potato flake manufacture (23F). Power plants, electric generation equipment (47B). Precipitators, electrical, dust and mist (32A).
Present worth determination (2E, 77E, 78E, 79E, 26E, 27E, 34E).
A N D ENGINEERING CHEMISTRY
Pressure gages and controllers (32B). Pressure vessels. See Vessels. Pricing ( 4 0 , 3 0 0 , 3 9 0 ) . Intracompany ( 7 9 0 , 2 7 0 , 280). Probability. See Statistical techniques, Process development (29M, 30M). Process equipment. See particular equipment. Producers, gas. See Gas producers. Product development (76M, 79M, 25.14, 27M, 36M). Production Cost control. See Cost control. Cost estimates. See Estimation methods. Professional development ( I M , lOM, 78M, 27Ml Profit, reinvestment of (33E, 34E). Profitability Index. See Interest rate of return on investment. Techniques (ZOC, 120, l E , 4E, 5E, 6E,. 9E, lOE, 74E, 77E, 78E, 19E, 22E, 23E, 24E, 32E, 33E, 34E, IOJ, 14J,. 235). Programming. See Linear programmin Propionic anhydride manufacture (2507: Propylene manufacture (47F). Pulp from bagasse (34F). Pulp mills (31F). Pulverizers. See Size reduction equipment. Pumping (47B). Pumps Gas (38A). Liquid (29A, 38A, 3023). Maintenance (3C). Punch card utilization (3K). Purchasing value. See Inflation. See Thermocouple, TherPyrometer. mometer. Radiochemical plants (55F). Railroad cars, mileage allowance ( 8 C ) . Rare earth manufacture (76F). Raw materials. See Ingredients. Reactors. See Vessels. Reboilers (36A). Receivers. See Tanks. Reduction, size. See Size reduction equipment. Refineries, complete cost (7G). Maintenance (3C, 22C). Operating costs (7G, 9G, 7 IG, ?2G, 13G). Scheduling (74L, 23.L). Reforming, catalytic ( 3 7 0 , 20F, lG, 4G, 75G, 16G, 77G, 78G, 79G,20G, 24G, 25G, 26G). Refractometers ( 14B). Reliability of esimates. See Estimates, comparison with actual. Repairs. See Maintenance. Replacement (2E, 3E, 7E, 9E, IOE, l l E , 12E, 79E, 20E, 24E, 25E, 26E, 28E, 29E, 8H, 9 J , 745). Research Budgeting ( Z K , 77K). Evaluation, choice of projects (77E, 23J, 7K, 2K, 5K, 8 K , 7OK). Expense records (3K). Measurement of return ( 6 K , 9K). Return on investment ( 1 2 0 , 160, 2 0 0 , 2 4 0 , 7E, 4E, 5E, 6E, 7E, 8E, 9E, 7OE, 73E, 14E, 75E, 76E, 18E, 79E, 23E, 24E, 37E, 33E, 34E, 7H, 9 J , 74J, 23J, 75M). Risk comparison ( 3 8 0 , 4E, 34E, 15L). Rock (36B). Rolls. See Size reduction equipment. Rotameters (3223). Royalty ( 5 C ) . Sales forecasts in estimating (50). Salvage value (22L). Sand (36B). Screens, vibrating ( 3 0 A ) . Screw conveyors. See Conveyors. Separators. See Entrainment separators,. Thickeners.
’
Service facilities ( 2 3 0 ) . Service life, useful (79E, 24E, 75L). Settling equipment. See Thickeners. Sewage disposal. See Waste treatment. Shale-oil (5OF). Shared facilities (23E, 26L). Shipping. See. Freight. Shoveling (26B). Site preparation ( 3 6 0 , 3 8 M ) . Six-tenths factor (78B, 7 0 ) . Size factor us. cost ( 7 0 , 9G). See also Six-tenths factor. Size reduction equipment ( 3 7 A ) . See also Crushers. Sodium cyanide (30F). Sodium hydroxide, fixed investment (40F). Manufacture (7F). Specifications in bid ( 5 D , 3 5 M ) . Spectrometer ( 7 4 B ) . Spray dryers. See Dryers. Spring materials (8B). Stack foundations ( 2 9 B ) . Standard costs ( 2 M ) . Startup expenses ( 3 6 0 , 4 E ) . Statistical techniques (34E, 3L, 7L, IOL, 77L,77L). Steam ( 5 B ) . Generators (28B, 2 5 0 ) . Traps (32B)’. . Stills, pipe ( 2 7 B ) . Storage tanks. See Tanks. Stress relief (70B). Subject index ( 3 4 M ) . Sucrose monoesters (79F). Sulfur from H2S (37F). Sulfur removal. See Desulfurization. Sulfuric acid manufacture (SF, 56F). From waste ickle liquor (IOF, 56F Sunk costs (7L7. Superphosphate manufacture ( 2 9 F ) . Supervision ( 2 5 0 ) . Tank cars, transportation costs. See Railroad cars. Tankers, ocean, transportation costs ( 79C, 27C). Tanks (5A, 22A, 38A). f
Foundations (75B).
Thermocouples (23B, 3. Thermometers, recording, controlling (23B. 32B). Thickeners, continuous ( 3 8 A ) . Tile 726B, 5 H ) . Titanium fabrication ( 4 B ) . Manufacture (78F). Toluene manufacture (56F). Tower packing. See Packing, tower. Towers, fractionating ( 8 A , 75A, 20A, 26A, 27A, 28A, 29A, 37A, 38A). Foundations ( 2 9 B ) . Transportation. See Freight. Trays, fractionating ( I A , 73A). Tubes, heater ( 3 7 A ) . Tubing ( 3 3 B ) . Urea investment (46F). Utilities, operating ( 3 6 0 , 3 8 M ) . See also individual utilities. Vacuud distillation ( 3 7 0 ) . Value determination ( 9 L ) . Variable us. fixed costs (7L, 3 7 M ) . Venture worth. See Present worth. Vessels (27A, 22A). See also Tanks. Wages. See Labor rates. Waste treatment (9B, 42B). Water Cooling, filter for ( 7 7 B ) . Demineralization systems ( 6 B , 7 B , 27B, 42B, 2 5 0 ) . Distilled, solar stills ( 7 7 B ) . Removal. See Dehydrators. From sea (72B,20B, 37B). Softening. See Water demineralization. Treating. See Water demineralization. Wax removal. See Dewaxing. Working capital. See Capital, working. Xylene manufacture (56F). Yard improvements. See Site.
’
Unit Operations Equipment-Investment a n d Operating Cost Data (1A) Bolles, W. L., Petroleurn Processing 1 1 , 109-20 (May 1956). Bubble-cap tray. (2A) Brown, J. G., Chem. Eng. Progr. 52, 238-40 (June 1956); Correction 331 (August 1956). Liquid filtration. (3A) Campbell, J. ,M., Oil Gas J. 54, 115-6 (March 5. 1956). Mist extractdrs. (4A) Chem. Eng. 63, 114-6 (April 1956). Gas plating. (5A) Ibid., pp. 193-6 (November 1956). Tanks. Chem. @ Process Eng. 37, 237 (July 1956). British glass furnace. Cichelli, M. T., Brinn, M. S., Chem. Eng. 63, 196-200 (May 1956). Heat exchanger. Coulson, J. M., Richardson, J. F., “Chemical Engineering,” vol. 2, McGraw-Hill, New York, 1955. British towers, packing, evaporators, spray dryer. Crites, G. J., Chem. Eng. Costs Q U Q Y ~6, . 4 (January 1956). Vacuum drying.
(10A) Cronan, C. S., ed., Chem. Eng. 63, 258-60 (August 1956). Linings, vessel or tower. (11A) Diltz, J. L., Chem. Eng. Costs Quart. 6 , 42-9 (April 1956). Mixing equipment. (12A) Donohue, D. A., Petroleum Processing If, 130-2 (March 1956). Heat exchangers. (13A) Friend, L., Lemieux, E. J., Oil Gas J . 54. 88, 90-2 (JuIv . , 23,. 19561. Tower trays. (14A) Frumerman, R., Chem. Eng. 63, 196201 (June 1956). Steam j e t e’ectors. (15A) Ge des, R. L., “Physical Design Features of Plate Columns,” pp. 41-71, in “Distillation in Practice,” Nielsen, C. H., ed., Reinhold, New York, 1956. Towers. (16A) Gifford, W. E., AIChE Annual Meeting, Boston, Mass., December 1956 (to be published, Chem. Eng. Progr.). Heat exchangers. (17A) Kern, D. Q., others, Petrolem Refiner 35, 128-32 (August 1956). Heat exchanger. (18A) Kracklauer, F. W., Chem. Eng. Costs Quart. 6 , 65-73 (July 1956). Liquid filters. (19A) Maguire, J. F., Ibid., 6, 37-41 (April
d
1956). Drum dryers and flakers. (20A) Mark, D., Orr, A. R., Petroleum Refner 35, 185-6 (December 1956). Fractionating towers: (21A) Nelson, W. L., Oil Gas J . 54, 97 (Jan. 23, 1956). Vessels. (22A) Zbid., p. 128 (Feb. 6, 1956). Vessels a n d tanks. (23A) Ibid., p. 113 (June 4, 1956): Furnaces. O’Neill, H., Proc. Am. Petroleum Znst., Section 111, Refining, 35, 411-6 (1955). Pipesandfittin s. Peak. R. F.. David. M. M.. A I S Regional Cost Symposium, Seattle Wash., June 11-12,1956. Cation exchange equipment. Pyle, C., “Over-all Tower Design from a Process Viewpoint,” p9; 1-40, “Distillation in Practice, Nielsen, C. H., ed., Reinhold, New York. 1956. Towers. (27A) Rose, A,, Rose, E., “Distillation Literature, Index and Abstracts, 1946-52,” Applied Science Laboratories, Inc., State College, Pa., 1953. Distillation. (28A) Rose A., Rose, E., “Distillation Literature, Index and Abstracts, 1953-54,” Applied Science Laboratories, Inc., State College Pa., 1956. Distillation. (29A) Sarvadi, G., Chem. Eng. Costs Quart. 6 , 56-64 (July 1956). Graphite heat exchangers, coolers, as absorbers, towers (packedy, and centrifugal pumps. (30A) Shira, W. S., Ibid., 6, 74-9 (July 1956). Vibrating screens. (31A) Smith, R. B., Edison, R. R., Petroleum Refner 35, 133-40 (August 1956). Heater tubes. (32A) Stastny, E. P., Chem. Eng. Costs Quart. 6 , 32-6 (April 1956). Electrostatic precipitators. (33A) Stern, A. L., Ibid., 6 , 50-1 (April 1956). Crushers. (34A) Trinks, W., “Industrial Furnaces,” vol. 2, 3rd ed., J. Wilev, . - New York, 1955. . (35A) Voznick, H. P., Chem. Eng. Costs Quurt. 6 , 11 (January 1956). Dryers. (36A) Wurzbach, C. O., others, Can. Chem. Processing 40, 30-2 (December 1956). Reboilers. (37A) Zimmerman, 0. T., Lavine, I., “Chemical Engineering Laboratory Equipment; Design, Construction, Operation,” 2nd ed., Industrial Research Service, Dover, N. H., 1955. (38A) Zimmerman, 0. T., Lavine, I., Petroleum Refiner 35, 116-27 (August 1956). Piping, heat exchangers, evaporator, filtration equipment, thickeners a n d clarifiers, rotary dryers, vacuum dryers, tanks, fans a n d blowers, towers, compressors, pumps. Auxiliary Equipment, Utilities a n d Offsite Facilities-Investment and Operating Cost Data (1B) Alderson, W. T., Chem. Eng. 63, 188-95 (June 1956). Centrrfugal us. reriprocatkg compressors. (2B) Ambler, C. W., Oil Gas J.54, 155-6 (Dec. 17, 1956). Cathodic protection. (3B) Ashley, R., “Electrical Estimating,” McGraw-Hill, New York, 1956. VOL. 49, NO. 6
JUNE 1957
941
(4B) Bedford, G. T., others, Chem. Eng. 63, 238, 240, 242, 244, 246, 248 (December 1956). Titanium and stainless steel as materials of construction. (5B) Berger, J. M., Armstrong T r a p Magazine 25, No. 4, 15 (1956). Steam cost. (6B) Berry, A. E., Eng. and Contract Record 67, 124-31, 169 (January 1954). Water softening. (7B) Biladeau, A. L., IND.ENG. CHEM. 48,2159-61 (1956). Water treatment costs usina ion exchange
. .
331-4 (1956). Spring mat&ials: (9B) Chasanov, M. G., Kunin, R., McGarvey, F., IND.ENG. CHEM. 48, 305-9 (1956). Waste treatment. (10B) Chem. Eng., 63, 132-4 (April 1956). Stress-relievin (11B) Zbid., pp. 176-9 ?September 1956). Distilled water in solar stills. (12B) Zbid., pp. 126-8 (October 1956). Fresh water from sea. (13B) Chem. @ Process Eng. 37, 225 (July 1956). British labor a n d fuel costs. (14B) Chem. Week 78, 138, 140, 142 (May 19, 1956). Mass spectrometer, infrared analyzers, continuous refractometers. (15B) Clark, W. G., Cost Engineering 1,12-8 (Julv 1956). Tank foundations. (16B) Faulkner, W:, Science 124, 659-63 (1956). Office building. (17B) Forbes, M. C., Petroleum Rejiner 35, 185-7 (April 1956). Water fil. _ ter. (18B) Hadley, W. A., Mech. Eng. 78,820-2 (1956). Automobiles. (19B) Hendryx, J. W., Oil Gas J. 54, 96-7 (Jan. 9, 1956). Packaged compressors. (20B) Hickman. K. C. D.. IND. ENG. CHEM.’48, 7A (April 1956). Power costs for water recovery. (21B) Kirkham, T. A., Chem. Eng. 63, 185-9 (October 1956). Pure water from brackish water. (22B) Leonard, E. S., Zbid., 63, 206-11 (June 1956). Centrifugal compressors. (23B) Minet, R . G., Mirkus, J. D., Chem. Ene. Proer. 52, 531-3 (1956). InsYtrumeYntatiod. (24B) Moll, K. D., Instruments and Automation 29, 710-4 (April 1956). Electronic equipment. (25B) Nelson, W. L., Oil Gas J., 54, 123 (March 5, 1956). Lumber. (26B) Zbid., p. 151 (March 26, 1956). Brick, cement, a n d clay products. (27B) Zbid., p. 245 (May 21, 1956). Pipe stills. (28B) Ibid., p. 122 (July 16, 1956). Steamgeneration equipment. (29B) Zbid., p. 108 (July 23, 1956). Foundations for towers, stacks, a n d chimneys. (30B) Zbid., p. 145 (Aug. 13, 1956). Refinery pump equipment. (31B) Zbid., p. 120 (Aug. 27, 1956). Electrical eauipment. (32B) Zbid., p. 149 (Seit. 10, 1956). Instrumentation. (33B) Ibid., p. 147 (Oct. 15, 1956). Pipe, tubing, a n d bends. (34B) Zbid., p. 127 (Nov. 5, 1956). Piping costs. (35B) Zbid., p. 265 (Nov. 19, 1956). Insulation.
.
~I
942
(36B) Zbid., p. 81 (Dec. 24, 1956). Excavation, foundations, a n d concrete. (37B) Neville-Jones, D. J., Research 8, 4239 (November 1955). Fresh water from sea. (38B) Oil Gas J. 54,137,138,140 (Nov. 5, 1956). Centrifueal us. reciurocating engines. ” (39B) Ottesen, R., Mech. Eng. 78, 1002-6 (1956). Cost of machine tools. (40B) Petroleum Processing 11, 181-2 (September 1956). Fuels. (41B) Petroleum Refiner 35, 234, 237, 239 (December 1956). Pumping. (42B) Powell, S. T., IND.ENG.CHEM.48, 2168-70 (1956). Reclaimed water from sewage. (43B) Rader, I. A., Mech. Eng. 78, 722-4, 735 (1956). Conveyors. (44B) Reid, J. F., Chem. Eng. 61, 195-8 (January 1956). Woven wire belts. (45B) Rice, E. F. T., Corrosion 10, 252 (August 1954). Construction materials for corrosion-resistant service. (46Bi Schutt. H. C.. Zdonik. S. B.. Oil Gas’J. 54, 92-7 (Junk 25, 1956). Compressors. (47B) Stueve, W. H., Zbid., 54, 64-8 (Dec. 24, 1956). Private power generation. (48B) Thompson, B. J., Ibid., 54, 245, 247-8, 250, 253 (Nov. 19, 1956). Hydraulic .motors. (49B) Vaughan, A. L., Zbid., 54, 91-3 (Oct. 22, 1956). Centrifugal us. reciprocating compressors. (50B) Volkening, V. B., Wilson, J. T., Chem. Eng. 63, 248, 250 (August 1956). Paint costs. (51B) Wallis, S. W. J., Can. Chem. Processing 40, 63-6 (February 1956). British automatic instruments. (52B) Woodard, G. C., Chem. Eng. Progr. 52, 165-8 (1956). Gas engine compressors.
. ,
Estimation of Manufacturing Cost Items-Data and Techniques Arens, J. E., Petroleum Eng. 28, E-12-3 (reference equipment issue, 1956). Depreciation. Armstrong, J. C., AIChE, New York Section All-Day Symposium, Oct. 18, 1956. Maintenance. Bale, E. S., Mast, E. L., Wester, R. E., Petroleum Rejiner 35, 159-65 (May 1956). Maintenance. Chem. Eng. 63, 268-70 (March 1956). Depreciation. Chem. Week 78, 70 (Feb. 18, 1956).’ Royalty fees. (6C) Zbid., pp. 30-1 (March 31, 1956). British fringe benefits. (7C) Ibid., 79, 30, 32 (Oct. 27, 1956). Fringe benefits. ( 8 C ) Zbid., p. 100 (Oct. 27, 1956). Mileage allowance on tank cars. (9C) Clark, C. D., J . Business 29, 28-40 (January 1956). Depreciation. 1OC) Dean, J., Zbid., 29, 79-89 (April 1956). Depreciation. 11C) Factory Manazement and Maintenance 114, 82-3 (April 1956). Fringe . . benefits. (12C) Fox, E. J., Conlon, J. F., 129th Meeting, ACS, Dallas, Tex., April 1956. Maintenance. (13C) Hardv. W. L.. IND.ENG.CHEW48, 83AL4A (June 1956); correl spondence 73A (November 1956). Foreign labor rates.
INDUSTRIAL AND ENGINEERING CHEMISTRY
(14C) Hodgins, T. S., Zbtd., 48, 3OA-1.k
(15C)
(16C) (17C) (18C) (19C) (20C)
(21C) (22C) (23C) (24C) (25C)
(26C)
(October 1956). Ingredients; make DS. buy. Lawrence, A. E., “Cost of Services,” pp. 33-50 in “Chemical Process Economics in Practice,” Hur. J. J., ed., Reinhold, New York, 1956. Overhead allocation. Lindsey, F. D., Chem. Eng. News 34, 5014,5017 (1956). Fringe benefits. Nelson, W. L., Oil Gas J. 54, 141 (April 23, 1956). Refinery depreciation rates. Zbid., p. 147 (May 7, 1956). Depreciation. Zbid., p. 241 (Aug. 20, 1956). Tanker rates. Norton, P. T., Eng. Economist 1, 1-8 (spring 1956). Effect of depreciation method on profitability. Petroleurn Processing 10, 1587-91 (October 1956). Freight rates on water; barge a n d ocean. Petroleum Refiner 35, 103 (January 1956). Maintenance. Reno, E. S., J. Account. 101, 59-64 (May 1956). Depreciation. Saunders, B. W., Mech. Eng. 78,419-22 (1356). Materials handling. Spacek, L., Financial Analysts of Philadelphia, Philadelphia, Pa., March 15, 1956. Effect of inadequate depreciation allowances. Stoess, H. A., Jr., Pulp Paper Can. 56, 204-7, 215 (Convention KO., 1955). Materials handling.
Techniques for Improving Product Cost and Investment Estimates ( I D ) AckoR, R. L., J . Ind. Eng. 5 , 11--2 (May 1954). How to balance cost of error in bid against cost of making further studies before making bid. (2D) Anderson, S . A., IND. ENG. CHEM. 48, 20A (July 1956). General estimation reauirements. (3D) Bauman, H. C., kharleston, W. Va., Section AIChE, Oct. 20, 1955. Fixed capital cost estimates. (4B) Bliss, J. A., 8th National Meeting, Operations Research SOC. of America, Ottawa, Canada, Jan. 9-10, 1956. Nonlinear pricing forms. (5B) Chem. Eng. Progr. 52, 171-8 (1956). Capital cost estimation. (6D) Creelman, M. B., J. Znd. Eng. 5 , 16-8 (May 1954). Technique to minimize bad cost records. (7D) Davis, D. S., Chem. Eng. 63, 222 (December 1956). Nomograph for scaling known equipment cost to cost at another size in 0.6 power ratio. (8D) Dodge, R. L., Charleston, W. Va., Section AIChE, Dec. 15, 1955. Optimizing estimation. (9D) Eilon, S., Engineering 182, 522-3 (Oct. 26, 1956). British economic lot size. (10D) Fennema, T. S., Petroleum Eng. 28, C-3, 5 , 6-8 (December 1956). Formula for setting priorities on mechanical projects. (11D) French, C. E., Food Eng. 28, 60 (November 1956). Nomograph for determining break-even point on labor-saving investments. (12D) Gaffney, B. J., Petroleum Refiner 35,
111-5 (August 1956). Graphic short cut for cost analysis. (13D) Gardner, F. V., “Profit Management and Control,” McGraw-Hill, New York, 1955 and 1956. Break-even charts. (14D) Garner, F. H., “Chemical Engineer,” pp. 23-51 in “Chemical Engineering Practice,” Cremer, H. W., ed., Academic Press, New York, vol. 1, 1956. Review of British a n d U.S. published data on estimation methods, short cuts, a n d accuracy. (1 5D) Gilmore, J. F., Petroleum Refiner 35, 175-80 (October 1956). Methods for compiling a n d using construction cost data for estimating. (16D) Gold, B., Advanced Management 21, 9-15 (April 1956). Managerial control -by return on investment. Hackney, J. W., Cost Engineering 1 , 27-39 (October 1956). Fixed capital cost estimating. Hannon, W. W., “Economic-LotSize Determination,” pp. 8-178 to 8-187 in “Industrial Engineering Handbook,” Maynard, H. B., 1st ed., ed.-in-chief, McGrawHill, New York, 1956. Heuser, F. L., N.A.C.A. Bull. 37, 1100-5 (May 1956). Intracompany pricing. @OD) Hill, R. D., Petroleum Refner 35, 10610 (August 1956). Development a n d opkrating cost eatimaiion. r(21D) Hirshleifer, J., J. Business 29, 17284. (.July 1956). Intracompany pricing. (22D) Jordan, D. G., “Chemical Pilot Plant Practice,” Interscience, New York, 1955. General estimation method. (23D) Knox, L. C., “Plant Investment,” pp. 17-32 in “Chemical Process Economics in Practice,” Hur, J. J., ed., Reinhold, New York, 1956. (24D) Krase, N. W., Chem. Eng. Progr. 52, 495-9 (1956). Discontinuing operating investments. (25D) Lawrence, A. E., Charleston, W.Va., Section AIChE, Nov. 17, 1955. Manufacturing cost estimates. (26D) Marlowe, G. J., AIChE, New York Section, All-Day Symposium, Oct. 18, 1956. Fixed capital cost estimates. (27D) Moody, H. R., “Plant Operating Costs,” pp, 51-65 in “Chemical Process EGonomics in Practice,” Hur, J. J., ed., Reinhold, New York, 1956. (28D) National Assoc. of Cost Accountants, “Accounting for IntraCompany Transfers,” Research Rept. 30 (June 1956). Pricing. (29D) Nelson, W. L., Oil Gas J. 54, 120 (Jan. 2, 1956). Fixed investment estimates. (30D) Ogden, F. F., “What Price the Chemical Product?,” pp. 66-81 in “Chemical Process Economics in Practice.” Hur, J. J., ed., Reinhold, New York, 1956. (31D) Pierce, D. E., AIChE Study Course, Charleston, W. Va., October 1955. Capital, maintenance, a n d utility budget estimates. (32D) Pierce, D. E., AIChE Study Course, Charleston, W. Va., October 1955. Review of estimation function.
(33D) Roche, W. E., “Estimating Construction Costs Work Investigations and Reports, Construction Report No. 432,” Margaret B. Roche, Glendale, Calif., 1952. (34D) Stephens, I. R., IND. END. CHEM. 48, 32A-3A (October 1956). General estimating procedure. (35D) Stock, P. P., “Estimating Procedures,” pp. 8-3 to 8-21 in “Industrial Engineering Handbook,” Maynard, H. B., ed.-inchief, 1st ed., McGraw-Hill, New York, 1956. (36D) Tielrooy, J., Chem. Eng. Progr. 52, 187-90 (1956). Fixed capital cost estimates. (37D) Tucker, W. E., Petroleum Rejfner 35, 100-5 (August 1956). Recording a n d classifying construction cost experience to make it useful fot quick cost estimat3 ing. (38D) WeaFer J. B., Eng. Economist 2, 29-32 (summer 1956). Risk analysis method. (39D) Zabel, H. W., Chem. Eng. Progr. 52. 183-6 (1956). Pricing history of synthetic’ organic ckemicals. Techniques for Expressing Profitability (1E) Abruzzi, A., Eng. Economist 1, 21-2 (spring 1956). Review of profitability comparison. (2E) Alchian, A. A., “Economic Replacement Policy,” Rand Corp., Santa Monica, Calif., Rept. R-224 (April 12, 1952). Replacement policy-c a p i t a l i ze d p r e s e n t Galue of costs. (3E) Bellman, R., J. Sac. Znd. Appl. Math. 3, 133-6 (Seatember 1955). Equipment replacement (4E) Chem. Eng. Progr. 52,399-401 Sym osium on estimation a n d pr o&abilit y. (5E) Dean, J., Advanced Management 20, 26-8 (April 1955). Analysis of capital productivity by interest rate of return. (6E) Dean, J., ‘(Capital Budgeting,” Columbia University Press, New York. 1951. (7E) Dean, J., Smith, W., J . Business, 28, 261-74 (October 1955). Attempt to fit MAPI formula for re facement into broader capitarbudgetin analysis. (8E) Frank, G. $, N.A.C.A. Bull. 38, 200-7 (October 1956). Determination of return on investment b y product. (9E) Gordon, M. J., J. Business 28, 253-60 (October 1955). Compares payout time a n d average investment formula with interest rate of return. (10E) Gruehr, A. R., Summer School of Engineering Economy Committee, ASEE, Urbana, Ill., June 1954 (pp. 138-41 in proceedin s). Comparison of profitab&tv met6ods. (11E) Jelen, F. C., Chem. Eng. 63, 308-9 (March 1956). CorresDondence i n ca italized cost technique. (12E) Jelen, C., Chem. Eng. Progr. 52, 413-6 (1956). Capitalized costs as method for choosing among replacement alternative; (13E) Kamsky, L., N.A.C.A. Bull. 36, 1443-51 (July 1955). Return on original investment. ’
6%:
P
(14E) Kettenring, K. N., Charleston, W. Va., Section AIChE, fall 1955. Comparison of profitability methods. (15E) Kutvirt, O., N.A.C.A. Bull. 38, 208-17 (October 1956). D e termination of departmental ret u r n on investment. (16E Lindsey, D. H., Zbid., 37, 713-20 (February 1956). Stockholder a n d divisional return on original investment. (17E) Maffei, R. B., Eng. Economist 1, 9-20 (spring 1956). Review of articles on capital budgeting. (18E) Martin, 6. C., “Economic Analysis,” pp. 82-102 in “Chemical Process Economics in Practice,” Hur, J. J., Ed., Reinhold, New York, 1956. Comparison of profitability methods. (19E) Norton, P. T., Summer School of Engineering Economy Committee, ASEE, Urbana, Ill., June 1954 (pp. 116-29 in proceedings). Comparison of profitability methods. (20E) Orensteen, R. B., J , Znd. Eng. 7, 283-94 (November-December 1956). Simplified analysis of MAPI replacement formula. (21E) Phillips, F. L., Standard Oil Co. of Ohio. Interest rate of return method. (22E) Plummer, W. B., AIChE New York Section. All-Dav Svmaosium, Oct. 18; 1956 (to be‘ piblished, Chem. Eng. Progr.). Critique of interest rate of return on investment. (23E) R e d , R. I., 4th National Management Conference, Hamilton, Ontario, Oct. 30, 1956. Interest rate of return by graphical inter olation. (24E) ScheubE, P. A., Jr., ASME Engineering Conference Paper 56MGT-2; [Abstract Mech. Eng., 78,6544 (1956)]. Replacement method based on payout time includin minimum return rate. (25E) Schwan, I ! . T., “Replacement of Machinery and Equipment,” pp. 7-66 to 7-95 in “Industrial Engineering Handbook,” Maynard, H. B., ed.-in-chief, 1st ed., McGraw-Hill, New York, 1956. (26E) Schweyer, H. E., Jelen, F. C., Chem. Eng. 63, 330-1, 328 (April 1956). Present worth us. capitalized costs for replacement analysis. (27E) Solomon, E., J. Business 29, 124-9 (April 1956). Analysis of mathematics of profitability methods. (28E) Swain, R. O., J. Ind. Eng. 6 , 11-2, 20-1 (January 1955). Machine replacement case study. (29E) Terborgh, G., 24th Annual Meeting, Am. SOC. Tool Engineers, Chicago, March 20, 1956. Summarizes intent a n d mode of application of MAPI replacement formula, without details of calculation. (30E) Terborgh, G., J. Business 29, 138-40 (April 1956). Critique of interest rate of return; defense of MAPI. (31E) Thomssen, E. G., Soap C3 Chem. Spec. 31, 91, 93 (.June 1956). Factors to b e considered in decision to purchase new machinery. VOL. 49, NO. 6
JUNE 1957
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(32E) Ventura, E., Lesourne, J., Ann. mines 3 . (March 1956). French comparison of profitability methods. (33E) Weaver, J. B., Reilly, R. J., Chem. Eng. Progr. 52, 405-12 (Correction 448) (1956). Interest rate of return for capital expenditure evaluation. (34E) Winn, F. W., Petroleum ReJZner 35, 199-210 (July 1956). Comparison of profitability methods. (35E) Zoeller, F. H., Business Budgeting 4, 7-8, 16-7 (February 1956). Machine replacement case study. Estimated Chemical Rfoduct DataInvestment and Operating Costs Airov, J., “Location Factors in Synthetic Fiber Production,” Urban and Regional Studies Section, School of Architecture and Planning, Mass. Inst. of Tech., Cambridge 39, Mass., 1956. Nylon 66, Orlon, Dynel, Acrilan, a n d Dacron. Beutcl, A. C., others, “Polyurethanes. A Versatile Synthetic for a Dynamic Era,” Polyurethane Associates, P.O. Box 98, Cambridge 38, Mass., 1956. Investment and operating costs. Bixler, G. H., Coverly, C. W., IND.ENG. CHEM. 45, 2596-606 (1953). Acetylene. Blaw-Knox Co., “Linde-Fraenkl Process. Low Cost Tonnage Oxygen Production,” Catalog No. 2402 (undated). Blaw-Knox Co. “Low Temperature Processes. Economics of LindeFraenkl Oxygen Plants,” Chem. Plants Ref. File No. 5-2.13 (undated). Blaw-Knox Co., “Low Temperature Processes. Separation of Coke Oven Gas,” Chem. Plants Ref. File No. 5-3.1 (undated). Ammonia investment. Blaw-Knox Co., “Manufacture of Chlorine in Oklahoma,” Oklahoma Dept. of Commerce and Industry, Oklahoma City, 1953. Chlorine a n d sodium hydroxide. Carlson, A. S., ed., “Economic Geography of Industrial Materials,’’ Reinhold, New York, 1956. Aluminum production, pulp a n d paper mill construction, freight data, sulfuric acid. Chem. Eng. 63, 122-4 (February 1956). Oxygen. Zbid., pp. 132-4; correction pp. 340-2 (July 1956). Acid recovery from pickle liquor. Zbid., p. 119 (July 1956). Ammonia investment. Zbid., pp. 114-6 (August 1956). Solid carbon dioxide. Zbid., pp. 128, 130, 132 (August 1956). Granulated fertilizer. Zbzd., pp. 354-7 (September 1956). Oxygen. Chem. Week 7 8 , 5 4 5 (Jan. 28, 1956). Gamma-benzene hexachloride (lindane). Zbid., 79, 70 (July 14, 1956). Rare earths. Zbid., 79, 115-6, 118 (Sept. 8, 1956). Aromatics from coal. Zbid., p. 56 (September 29); 62, 64
(Dec. 8, 1956); correction 80, 10 (Jan. 12, 1957). Titanium. (19F) Zbid., p. 73 (Dec. 1, 1956). Sucrose tallowate. (20F) Davidson, R. L., Petroleum Processing, 11, 115-38 (November 1956). Hydrogen. Dunwoody, W. B., Phillips, J. R., Petroleum Refiner 35, 169-71 (December 1956“). Ammonia. Ermenc, E. D., Chem. Eng. Progr., 52, 16, 488-92 (1956). Nitric acid. Gemmill, A. V., Food Eng. 28, 82-7 (June 1956). Potato flakes. Haines, H. W., Lange, F., IND. ENG. CHEM.,48, 966-76 (1956). Granulated fertilizers. Hardy, W. L., Zbid., 77A-9A (February), correspondence 791% (September), 77A (December 1956), DDT. Zbid., pp., 79A-81A (April), correspondence 79.4 (September 1956). Chloral. Zbid., pp. 45A-6A (September 1954). Phenol-formaldehyde resin manufacture. Zbid., pp. 41A-2A (October 1956). Benzene hexachloride. Zbid., pp. 41A-2A (November 1956). Superphosphate fertilizer. Zbid., pp. 41A-2A (December 1956). Sodium cyanide. Hull, J. H., ACS Regional Cost Symposium, Seattle, Wash., June 11-12, 1956. Pulp a n d paper. Hull, W. Q., Stent, C., IND.ENG. CHEM.48,2095-106 (1956). Gold. IND.ENG. CHEM., 48, 15A, 17A, 18A (September 1956). Newsprint. Zbid., 20A, 22A, 23A (December 1956). Bagasse for pulp. Kelly, L. S., J . A m . Oil Chemists’ SOG.33, 484-7 (1956). Hydrogen. Klima, B. B., Ward, W. T., Chem. E n e . Proer. 52. 381-7 11956). Niirogenr15. ’ Kohl, A. L., others, Oil Gus J., 50, 154-9 (Feb. 25, 1952). Sulfur from hydrogen sulfide. Martin, J. J., Chem. Eng. N e w s 34, 5758 (1956). Polyethylene. Meyer, R. E., Petroleum ReJiner 35, 172-8 (December 1956). Methanol, formaldehyde, acetaldehyde. Nelson, W. L., Ozl Gus J . 54, 131 (April 9, 1956). Hydrochloric acid. Palazzo, D. F., Schreiner, W. C., Skaperdas, G. T., IND. ENC.CHEW 49, 685 (1957). Hydrogen. Parker, F. D., Jones, H. R., Petroleum Rej’iner 35, 187-90 (December 1956). Ammonia, sulfur removal. Petroleum Processing 11, 87 (January 1956). Ammonia. Zbzd., pp. 87-9 (February 1956). Ethylene. Zbzd., pp. 135-7 (March 1956). Fluid coking. Zbid., pp. 127-9 (May 1956). Urea. Zbid., pp. 91-3 (June 1956). Ethylene, propylene. Ibid., pp. 167-9 (September 1956). Ammonia. Pfeiffer, C., Sandler, H. J., Proc. A m . Petroleum Znst., Section 111, Refining, ‘35, 294-307 (1955). Hydrogen.
INDUSTRIAL AND ENGINEERING CHEMISTRY
(50F) Prien, C. H., Savage, J. W., Chem. Eng. Progr. 52, 16J-21J (1956). Shale oil. (51F) Regna, E. A,, Bruins, P. F., IND. ENC. CHEM.48, 1268-77 (1956). Aconitic acid from molasses. (52F) Schroeder, K. P., J. A m . Ozl. Chemists’ Sac. 33, 565-8 (1956). Fatty alcohols. (53F) Schutt, H. C., Zdonik, S. B., Oil Gus J . 54, 98-107 (February 1956). Ethylene. (54F) Soup CY Chem. S’cc. 32, 51, 53 (January 1956). Glycerol purification. (55F) Stockdale, W. G., Chem. Eng. 6 3 , 185-7 (April 1956). Radiochemical plants. (56F) Vollmer, R. W., Simmat, W. E., Am. Inst. of Mining and Metallurgical Engrs., April 19, 1955. Ammonia, ammonium nitrate, ethylene, benzene, toluene, xylene, hydrogen cyanide, oxygen, argon, a n d sulfuric acid. (S7F) Vollmer, R. W., Simmat, W. E., Blast Furnace and Coke Assoc. of Chicago, Jan. 20, 1955. Ammonia. (58F) Waggaman, W. H., Ruhlman, E. R., IND. END. CHEM.48, 360-9 (1956). Phosphoric acid. Estimated Petroleum Refining DataInvestment and Operating Costs (1G) Belden, D. H., Petroleum Rejner 35, 149-52 (October 1956). Catalytic reforming. (2G) Chem. Eng. N e w s 34, 6324-5 (1956). Sulfur removal from gasoline. (3G) Daugherty, R. A,, Petroleum Eng. 28, E-13, 14, 16 (September 1956). Gas dehydration. (4G) Hemmen, G. H., others, Proc. Am. Petroleum Inst., Section 111, Refining, 35, 334-44 (1955). Catalytic reforming. (5G) Huff, R. L., Petroleum Rejner 35, 194-5 (May 1956). LPG recoverv. (6G) Kerste;, R. C., Warren, T. W., Oil Gas J . 54, 176, 178, 180, 182, 184-5, 187 (July 30, 1956). Tetraethyllead us.‘ more reforming. (7G) McLean, J. G., Haigh, R. Mi., “Growth of Integrated Oil Companies,” Graduate School of Business Administration, Harvard, 1954: pp. 550-67, Refinery economics. (8G) Nelson, W. L., Oil Gus J . 54, 110 (Aug. 6, 1956). Alkylation. (9G) Zbid., pp. 109-10 (Aug. 6, 1956). Effect of refinery capacity on operating cost. (10G) Zbid., p.. 118 (Oct. 29, 1956). Dewaxmg. (11G) Zbid., pp. 99-100 (Nov. 26, i956). Refining high-gravity crudes. (12G) Zbid., pp. 146-7 (Dec. 17, 1956). Refinery operation below capacity. (13G) Zbid., p. 207 (Dec. 31, 1956). Refining high-sulfur crudes. (14G) Oil Gus J . 54, 113 (Jan. 2, 1956). Ethylene manufacture. (15G) Zbid., pp. 137-84 (March 19, 1956). Catalytic crackin5, hydrodesulfurization, isomerization, H F alkylation, fluid coking. (16G) Z6id., p. 133 (May 21, 1956). Catalytic reforming.
(17G) Ibid., pp. 96-9 (July 23, 1936). Catalytic reforming. (18G) Petroleum Processing 11, 66-7 (August 1956). Catalytic reforming. *(19G)Ibid., pp. 101-3 (October 1956). Catalytic reforming. (20G) Petroleum Refner 35, 214, 250, 300 (September 1956). Reforming, alkylation, hydrodesulfurization. (21G) Phillips, R. J., Zbid., 35, 202-4 (November 1956). Electrostatic desulfurization of reformer feed. (22G) Prengle, H. W., others, Zbid., 35, 141-7 (April 1956). Skid-mounted plants for recover of gasoline. (23G) Sittig, M., Unzekan, G. H., Petroleum Processing 11, 75-93 (August 1956); Petroleum Eng. 28, C-4-5 (October 1956). Sulfur removal from gasoline. (24G) White, C. P., others, Petroleum Refner 35, 171-7 (May 1956). Catalytic reforming. (25G) Winslow, W. H., Weikart, J., Proc. Am. Petroleum Znst., Section 111, Refining, 35, 352-8 (1955). Refining high-sulfur crudes. (26G) Worrell, G. R., Petroleum Refiner 35, 138-40 (April 1956). Catalytic reforming. Inflation and Cost IndexesEquipment, Labor, Construction (1H) Chem. Eng. 63, 194-5 (March 1956). Equipment indexes. (2H) Chem. Eng. News 34, 728 (1956). Contract escalation as a n inflationary factor. (3H) Corbin, D. A., Analyst’s J. 12, 5 , 73-9 (November 1956). Distortion of financial statements by inflation. (4H) Dun’s Rev. d Mod. Ind. 68, 23-6, (Au ust 1956). Price in‘ 28-9 dexes a n 8 other business indicators, 1914-1955. (5H) Eng. News-Record 157, 81-298 (Dec. 6, 1956). Several building a n d construction cost indexes compared; labor a n d materials costs. (6H) 1st National Bank of City of New York, Bus. & Econ. Conditions, p. 142 (December 1956). Depreciation of various currencies, 1946-56, as interest rate. (7H) Freeman, E. S., N.A.C.A. Bull. 38, 187-99 (October 1956). Elimination of inflation’s effect on return on investment. (8H) Jelen, F. C., Chem. Eng. 63, 165-9 (May), 247-52 (June 1956). Replacement studies b y capitalized cost, including constant inflation rate. (9H) Nelson, W. L., Oil Gas J. 54, 119 (Jan. 2), 139 (April 2), 119 (July 2), 111 (Oct. I, 1956). Detailed indexes of labor, equipment, a n d construction costs b y type
1946-May 1956. (10H) Ibid., p. 121 (Jan. 9, 1956). Graph of refinery construction cost index, 194c57. (11H) Ibid., p. 110 (Oct. 1, 1956). Basis for refinery construction index. Capital Budgeting-Costs, Sources and Procedures (1J) Chem. Eng. News 34, 3696-8 (1956). Sources of capital.
(2J) Chem. Week 79, 30-1 (Sept. 1. 1936). Sources of capital. (3J) Zbid., p. 30 (Sept. 22,1956). Sources of capital. (45) Zbid., p. 22 (Oct. 27, 1956). Sourcss of capital. (55) Zbid., p. 38 (Oct. 27, 1456). Sources of capital. (6J) Gordon, M. J., Shapiro, E., Management Science 3, 102-10 (October 1956). Cost of capital determination. (7J) Grant, E. L., Summer Schopl of Engineering Economy Committee, ASEE, Urbana, Ill., June 1954 (pp. 130-7 in proceedings). Sources of capital. (8J) Grimm, W. T., Chem. Eng. News 34, 3800-3 (1956). Raising funds by private placement. (9J) Heinaman, S. T., Eng. Economist 2, 1-18 (fall, 1956). Return on averagz investment; appropriation request procedures. (1OJ) Heiser, H. C., N.A.C.A. Bull. 38, 160-3 (September 1956). Symposium on justification procedures. (11J Hill, H. G., Jr., J. Business 28, 28590 (October 1956). Procedure for capital -iustification and con-‘ trol. (12J Hill, H. G., Jr., “Managing Employment of Capital Funds,” Seventh Executive Conference on Administrative Policies and Problems, University of Pa., Wharton School of Finance and Commerce, Philadelphia, June 27, 1956. Capital budgeting procedures, interest rate of return. (13J) Kempster, J. H., N.A.C.A. Bull. 37, 1080-91 (May 1956). Projection of capital needs. (145) Kiser, G. E., Petroleum Rejner 35, 200, 202, 204, 206, 208, 210-1 (August 1956). Capital budgetin procedures; survey of profita%ility methods. 1 (15J) Livingston, W. G., N.A.C.A. Bull. 38,218-30 (October 1956). Capital appropriation a n d control procedures. (16J) Neidig, C. P., Chem. Eng. Progr. 52, 269-73 (1956). Sources of capital. (175) Neidig, C. P., Delaware Valley Regional ACS Meeting, Philadelphia, Feb. 16, 1956. Sources of capital. (185) Norton, F. E., J. Business 28, 291-5 (October 1955). Capital budgeting procedures. (19J) Price, W. J., Finsterbusch, K., “Financing the Plant,” pp. 103-15 in “Chemical Process Economics in Practice,” Hur, J. J., ed., Reinhold, New York, 1956. Sources of capital. (205) Silberman, C. E., Fortune 53, 131-5, 152, 155-6, 158, 160 (June 1956). Sources of caDital. (215) Small, P. H., &fierations Research 4, 581-7 (October 1956). Cost of capital. (225) . I Solomon. E.. J. Business 28. 240-52 (October 1955). Cost of’ caDita1. (235) Soule, R. P., Commercial iY Fi&ncial Chronicle, 183, 2478-9, 2513-14 (May 24, 1956). C o s t of capital. (24J) Ulin, R. P., J . Business 29, 185-90 (July 1956). Sources of capital. (25J) Wager, H. R., Chem. Eng. Progr. 52, 402-4 (1 956). Appropriation request procedures. ~
Evaluation of Research
by Estimation
(1K) Business Week 184-8 (March 31, 1956). Formula for choice of research projects. (2K) Carpenter, M. T., Chem. E n . Progr. 5 2 , 64, 82, 84, 88 (1956f. Research budgeting. (3K) Friedman, G., Eisen, I., Research and Engineering 2 , 35-7 (June 1956). Research cost accumulation on punched cards. (4K) Kapnicky, J. A., IND.ENG. CHEM. 48,47A-8A (August 1956). Pilot plant costs us. benefits. (5K) Leermakers, J. A., “Selection and Screening of Projects,” pp. 81-94 in “Getting the Most from Product Research and Development,” Dooher, M. J., ed., American Management Assoc., Special Rept. 6, 1955. Critique of formulas for research project selection. (6K) Nyland, H. V., Towle, G. R., N.A.C.A. Bull. 37, 1092-9 (May 1956). Evaluation of research results. Payne, J. W., Petroleum ReJTner 35. 126-8 (June 1956). Pilot plant costs us. benefits. Pinkston, J. T., Delaware Valley Regional ACS Meeting, Philadelphia, Feb. 16, 1956. Cost estimates on new processes. Research and Engineering 1, 8-10, 12, 14, 16-7 (November 1956). Research Droiect evaluation. Rosen, B..H.; Chem. Eng. Progr. 52, 500-2 (1956). Criteria for choosing research projects. (11K) Swearingen, J. S., Petroleum ReJTner 35, 124-5 (June 1956). Estimation of research costs. Engineering Economy a n d Operations of Estimators Research-Tools (1L) Ackoff, R. L., Proc. Oonference on Case Studies in Operations Research, Case Institute of Technology, Cleveland, Ohio, 1956. Applications of operations research. (2L) Acrivos, A., Chem. Eng. 63, 215-6 (August 1956). Linear programming, description. (3L) Bennion, E. G., Haruard Business Rev. 34, 115-23 (NovemberDecember 1956). Capital budgeting a n d game theory. (4L) Carlson, W. M., Chem. Eng. Progr. 52,241-3 (1956). Scope of operations research groups. (5L) Eastman, R. M., Anderson, D. A., Eng. Economist 2, 1-28 (summer 1956). Effect of business cycle pn engineering economy studies. (6L) Friedman, L., Operations Research 4, 104-12 (February 1956). Optimum bidding strategy based on cost estimates. (7L) Goetz, B. E., Summer School of Engineering Economy Committee, ASEE, Urbana, Ill., June 1954 (pp. 15-25 in proceedings). Economics of business enterprise in engineering economy. (8L) Greenwald, D. U., Ibid., pp. 108-12. Comparison of engineering economy a n d operations research. VOL. 49, NO. 6
JUNE 1957
945
(9L) Lesser, A., Am. SOC. for Eng. Education, Eng. Economy Committee, June 25-9, 1956, Iowa State College. Importance of value criteria in engineering economy. (1OL) Lesser, A., J . Eng. Educ. 44, 307-13 (January 1954). History of engineering economy with critical evaluation. ( I l L ) Lesser, A., ed., “Proceedings, Summer School and Conferences, Urbana, Ill., June 1954,” Engineering Economy Committee, Am. SOC.Eng. Education. (12L) Zbid.,pp. 11-14. Objectives of engineering economy. (13L) McKean, J. P., Zbid., pp. 153-66. Engineering economic valuation of obsolescent facilities. (14L) Mann, A. S., “Scheduling of Petroleum Refinery Operations,” Harvard Univ. Press, Cambridge, Mass., 1956. Linear programming application. (15L) Mills, J. P., Am. SOC. for Eng. Education, Eng. Economy Committee, June 25-9, 1956, Iowa State College. Statisticd techniques as aid in engineering economy. (16L) Mitten, L. G., J . Eng. Educ. 45, 560-3 (March 1955). Comparison of engineering economy and operations research. (17L) Randolph, P., Summer School of Engineering Economy Committee, ASEE, Urbana, Ill., June 1954 (pp. 95-107 in proceedings). Comparison of engineering economy and operations research. (18L) Rapoport, A,, J . Znd. Eng. 5, 12-4 (May 1956). How estimates rely on communications. (19L) Rathe, A. W., Summer School of Engineering Economy Committee, ASEE, Urbana, Ill., June 1954, (pp. 44-51 in proceedings). Accounting as aid to engineering economy. (20L) Schiller, D. H., Zbid., pp. 113-5. lbid.. Comparison of enzineerina economy ^ a n d operations r& search. (21L) Schwan, H. T., Wilkinson, J. J., Chem. Eng. 63, 211-4 (August 1956). Linear programming, description. (22L) Shillinglaw, G., J. Business 28, 27584 (October 1955). Salvage and other: residua1 values in engineermg economy. (23L) Symonds, G. H., IND.ENG. CHEM. 48, 394-401 (1956). Linear programming, refinery scheduling. (24L) Weaver, J. B., Eng. Economist 2, 1924 (fall 1956). Chemical industry’s lack of use of engineering economics. (25L) Weinwurm, E. H., J . Znd. Eng. 6, 20-3 (July-August 1955). Critique of engineering economy as little used. (26L) Weinwurm, E. H., Summer School of Engineering Economy Committee, ASEE, Urbana, Ill., June, 1954 (pp. 52-71 in proceedings). Accounting data us. data needed by engineering economy. (27L) Westfield, F. M., Z6id., (pp.26-40 in proceedings). National economics relation to engineering economy.
946
(28L) Zand, D., .4m. SOC.for Eng. Education, Eng. Economy Committee, June 25-9, 1956, Iowa State Co1leg.e. Decisioy-making processes m engineering economy.
Miscellaneous (1M) Aries, R. S., Cziner, R. M., J. Eng. Educ. 46,446-52 (January 1956). Survey of engineering economics studies of 125 engineering schools. (2M) Bierwert, D. V., Chem. Eng. 63, 18992 (May 1956). Control chart for deviation from standards. (3M) Bolin, R. L., IND.ENG.CHEM.48, 40A-3A (June 1956). Survey of utilization of estimating function. (4M) Brearley, G., “Economics of Production as Exemplified in Process Industries,” pp. 53-88 in “Chemical Engineering Practice,” Cremer, H. W., ed., vol. 1 Academic Press, New York, 1956. Reviews accounting, depreciation, costing, break-even charts, and budgetary control from British viewpoint. (5M) Business Week, 46-54 (April 28, 1956). Working capital. (6M) Chem. Eng. 63, 136, 138 (December 1956). Savings by digital computation. (7M) Chem. Eng. News 34, 1342, 1344 (1956). Diversification. (8M) Chem.Week78,27-8 (May12,1956). Tax rates. (9M) Collins, G. T., Delaware Valley RePional Meeting. ACS. Feb. 16. 19f6. Divers%&tion. . OM) Cost Engineering 1, 3-11 (July), 23-6 (October 1956). Founding of American Association of Cost Engineers. 1M) Davidson, R. L., Petroleum Processing 11,61-4 (June 1956). Tower estimation by use of computers. 2M) Goett, E. J., Delaware Valley Regional Meeting, ACS, Philadelphia, Feb. 16, 1956. Diversification. (13M) Graning, M. C., N.A.C.A. Bull. 37, 738-44 (February 1956). Accountant’s function in estimation. (14M) Greenhut, M. L., 6‘Plant Location in Theory and Practice. Economics of Space,” Univ. of North Carolina Press, Chapel Hill, N. C., 1956. (15M) Heinaman, S. T., N.A.C.A. Bull. 36, 1452-62 (July 1955). Return on investment approach to inventory. (16M) Hyde, A., IND.ENC. CHEM. 48, 716 (1956). Case study of abandoned project. (17M) Kulp, H. P., “Why Accounting?,” pp. 1-16 in “Chemical Process Economics in Practice,” Hur, J. J., ed., Reinhold, New York, 1956. Accounting. (18M) Lesser, A., Jr., J . Eng. Educ. 46, 498-9 (January 1956). History of Engineering Economy Committee and Division, American Society of Engineering Education.
INDUSTRIAL AND ENGINEERING CHEMISTRY
(20M) McLean, W. H., Delaware Valley Regional Meeting, ACS, Philadelphia, Feb. 16, 1956. Diversification. (21M) Manning, W. R., Chem. Eng. P r o p . 52. 106. 108 (June 1956). Review of courses by AICh‘E local section. (22M) Miner, D. F., Seastone, J. B., “Handbook of Engineering MateriaIs,” Wiley Eng. Handbook Series, Wiley, New York, 1955. Mentions importance of costs. (23M) Mitten, L. G., Summer School of Engineering Economy Committee, ASEE, Urbana, Ill., June 1954 (pp. 77-86 in proceedings). Disaster cost estimation. (24M) Nara, H. R . , J. Ind. Eng. 5 , 14-6 (May 1954). Value of cost records in estimating. (25M) Pacifico, C., PND. ENC. CHEM.48, 714 (1956). Abandonina a. product development. (26M) Paton, B. L., Petroleum ReJiner 35, 161-4 (November 1956). Savings bv model construction. (27M) Rivhire, J., Research and Engineering 2, 30-3 (March 1956). Economics function. (28M) Ross, J. E., ASME Petroleum Mechanical Engineering Conference, ASME Paper 56-PET-10. Data on deviation of bids on same job. (29M) Samaniego, J. A., Cost Symposium Regional Meeting, ACS, Seattle, Wash. Case history of estimation during process. (30M) Samaniego, J. A.> Nelson, C. R., Chem. Eng. Progr. 52, 471-3 (1956). Case history of estimation during process. (31M) Schrage, R. W., “Automatic Computer in Control and Planning of Manufacturing Operations,” pp. 331-68 in “Advances in Chemical Engineering,” vol. 1, Drew, T. B., Hoopes, J. W., eds., Academic Press, New York, 1956. Costs and uses of computers in economic functions. (32M) Smith, P. W., APChE New York Section All-Day Symposium, Oct. 18, 1956 (to be published, Chem. Eng. P r o p . ) . Depletion provisions, U. S. and foreign. (33M) Warner, F. E., Ind. Chemisf 32, 51 (January 1956). From American equipment costs, suggests conversion to British money b y $5 per pound sterling. (34M) Weaver, J. B., IND. ENG.CHEM.48, 934-42 (1 956). Bibliography, 268 articles on chemical cost and profitability estimation. (35M) Weinrich, W., AIChE New York Section All-Day Symposium, Oct. 18, 1956 ( t o be published in Chem. Eng. Progr.). Chemical us. petroleum design and estimation practices. (36M) Wittenberg, R. B., “Introduction to Chemical Market Research.” pp. 1-13 in “Chemical Market Research in Practice,” Chaddock, R. E., ed., Reinhold, New York, 1956. Refers to estimating function. (37M) Wver, R., N.A.C.A. Bull. 38, 35361 (November 1956). Adequacy of fixed-variable cost assumption. (38Mj Yaseen, L. @., “Plant Location.” American Research Council. New York. 1956. I
