Professional Documents
Culture Documents
Chapter 22
Cost Accounting
& Capital Cost
Purchase Costs of Most Widely
Used Process Equipments
Part 1
Introduction to
Purchasing Costs
Introduction to Purchasing Costs
Recap
ACCOUNTING
Asset Income
Liability
Cost
Equity
Cost Accounting
Overview of CP
Purchase Costs (CP)
Plates
Pumps and
Electric Motors
Pumps and Electric Motors
Pumps
• There are 3 main industrial pumps:
– CENTRIFUGAL Pumps
– RECIPROCATING Pumps
Pumps
• About 90% of the time, CENTRIFUGAL pump
is used because
– Inexpensive among the 3 pumps
– High Speed
– Simple construction, little to no wear & tear
– Large no. of suppliers
– Wide range of materials flowrates & temperatures
– Smooth pumping flowrate
– Can handle slurries
– Easy operation
Pumps
• The other 2 pumps are preferred over
centrifugal pumps when
– Liquid is viscous (>100 centistokes)
– Narrow pump efficiency on pump curve
– Head greater than 3200 ft is required
– Flowrate greater than 1500 GPM
• Remember!! Pumps have limitations!
– Don’t pump liquid with large amount of air (will
cause air binding in pumps priming is required)
– Don’t pump liquid near bubble pt prevent
cavitation
Cost Accounting and Capital Costs: Purchasing Costs Page 15
Pumps and Electric Motors
S = Q (H) 0.5
where: Q is in gallons per min (GPM) Eqn 22.13,
H is in ft pg560
– Base Cost:
Eqn 22.14,
CB = exp{9.7171 - 0.6019ln(S) + 0.0519[ln(S)]2} pg561
OR
Refer to Cost Curve @ Fig. 22.3 Pg. 561
CB
CB = f(S)
In this case,
CB = exp{9.7171 - 0.6019ln(S) + 0.0519[ln(S)]2}
Size Factor, S
However, external gear pumps are more pricey and has less
smooth pumping than centrifugal pumps…
S=Q
where: Q is in gallons per min (GPM)
– Base Cost:
Eqn 22.21,
CB = exp{7.6964 + 0.1986ln(Q) + 0.0291 [ln(Q)]2} pg563
OR
Refer to Cost Curve @ Fig. 22.5 Pg. 563
Info for rotary gear pumps cost curve are very limited… the
above CB formulae are applicable to 300-3500rpm only…
Cost Accounting and Capital Costs: Purchasing Costs Page 26
Pumps and Electric Motors
OR
Refer to Cost Curve @ Fig. 22.6 Pg. 564
Cost Accounting and Capital Costs: Purchasing Costs Page 32
Pumps and Electric Motors
Motors
• Pumps, especially centrifugal pumps, are driven
by electric motors.
Motors
Motors
CP = FT CB
• Base Cost (CB) Calculation
– Size Factor: Motor Power Consumption (PC)
S = PC = PT/(ηP ηM )
= PB / ηM Eqn 22.16,
pg561
= QHρ/(33000 ηP ηM)
where: PT is total pump horsepower in hp
PB is pump brake horsepower in hp
Q is pump flowrate in GPM
H is pump head in ft
ρ is density in lb/gallon
**ηP is pump efficiency, calculable by Eqn 22.17
**ηM is motor efficiency, calculable by Eqn 22.18
Motors
CP = FT CB
• Base Cost (CB) Calculation (…Continued)
**Steps to calculate ηP and ηM ???
1. Identify Pump Flowrate, Q (GPM). (around 50-50000GPM)
2. Calculate Pump Efficiency, ηP :
Eqn 22.17,
ηP = -0.316 + 0.24015 lnQ – 0.01199 (lnQ)2
pg562
3. Calculate Pump Brake Horsepower, PB :
Eqn @ Slide #27
PB = QHρ/(33000 ηP) Follow units requirements
4. Finally, calculate Motor Efficiency, ηM :
Eqn 22.18,
ηM = 0.80 + 0.0319 lnPB – 0.00182 (lnPB)2 pg562
Motors
CP = FT CB
• Base Cost (CB) Calculation (…Continued)
– Base Cost for Motors:
CB = exp{5.8259 + 0.13141 ln(PC) + 0.053255 [ln(PC)]2 Eqn 22.19,
+ 0.028628 [ln(PC)]3 – 0.0035549 [ln(PC)]4} pg562
OR
Refer to Cost Curve @ Fig. 22.4 Pg. 562
Motors
CP = FT CB
• Correction Factors – FT
– Motor Type Factor, FT:
Refer to Motor Type (Enclosure and rpm) FM
@ Table 22.22 Pg. 563
• Additional information:
– Density: 9.54 lb/gal (1lb=453.592g; 1 gallon= 0.133681ft3= 3785.41cm3)
– Viscosity: 0.37 cP (1 cP = g/s.cm)
– Vapour pressure: 1.212 atm
Fans, Blowers
and Compressors
Fans, Blowers and Compressors
• Compression Ratio
= Tot. discharged pressure/Tot. suction pressure
Classification
FANS BLOWERS COMPRESSORS
Almost all energy input Energy input increases Almost of all energy
increases the velocity both velocity head and input increases the
head (increase pressure head pressure head (increase
flowrate) (increase flow rate and pressure)
pressure)
Widely used for high- Used for the Widely used with a
flow, low pressure- applications (eg: fired variety of gases (gas
increase application (eg: heaters, fixed-bed mixtures) to increase
heating and ventilation absorbers) with more their pressure to
system) pressure drop than a required level for
fan chemical reaction and
separation
Compression Ratio ≤ 1.2 Compression Ratio ≤ 2 Compression Ratio ≥ 2
Fans
• There are 2 main industrial fans:
– CENTRIFUGAL Fans
• Backward-Curved Blade
• Straight-Radial Blade
– AXIAL-FLOW Fans
• Vane Axial
• Tube Axial
Fans
• CENTRIFUGAL Fans:
– Able to achieve high discharge pressure (relative
to axial fans)
1. Centrifugal Backward-Curved
• Cheapest compared to Straight-Radial
Centrifugal Fans
• Most efficient
• Discharge pressure decreases rapidly from its
maximum value as flow rate is increases
• Only suitable for air and clean gases
Fans
• CENTRIFUGAL Fans:
– Able to achieve high discharge pressure (relative
to axial fans)
2. Centrifugal Straight-Radial
• Suitable for dust-laden gases
• Maintain discharge pressure up to 1.2 over a
wider range of flow rate
• Less efficient
Fans
Centrifugal Fan
Fans
• AXIAL-FLOW Fans:
– Able to achieve high flow rate (relative to
centrifugal fans)
Fans
Fans
• Among 4 types of fans, which to choose???
– Refer to Table 22.23 Pg566 (Typical Operating
Range of Fans)
Fans
Fans
CP = FH FM CB
• Base Cost (CB) Calculation
– Size Factor: Inlet Gas Flowrate (Q)
S=Q
where: Q is in Actual Cubic Feet per Minute (ACFM)
– Base Cost:
• Centrifugal Fans
Centrifugal backward-curved fan (valid from Q = 1000 to 100,000 ACFM)
Eqn 22.25,
CB = exp{11.0757 - 1.12906 lnQ + 0.08860 [lnQ]2} pg566
Centrifugal straight-radial fan (valid from Q = 1000 to 20,000 ACFM)
Eqn 22.26,
CB = exp{12.1678 - 1.31363lnQ + 0.09974 [lnQ]2} pg566
Fans
CP = FH FM CB
• Base Cost (CB) Calculation
– Base Cost:
• Axial-Flow Fans
Vane-axial fan (valid from Q = 1000 to 800,000 ACFM)
Eqn 22.27,
CB = exp{9.5229 – 0.97566lnQ + 0.08532 [lnQ]2} pg567
Tube-axial fan (valid from Q = 2000 to 800,000 ACFM)
Eqn 22.28,
CB = exp{6.12905 - 0.40254lnQ + 0.05787[lnQ]2} pg567
OR
Refer to Overall Fan Cost Curve @ Fig. 22.7 Pg. 566
Fans
CP = FH FM CB
• Correction Factors – FH, FM
– Fan Head Factor, FH:
Refer to Fan Head FH @ Table 22.24 Pg. 566
𝑷 𝒗𝟐
Recall: 𝑯𝒆𝒂𝒅 = +
𝝆𝒈 𝟐𝒈
Fans
CP = FH FM CB
• Correction Factors – FH, FM
– Fan Material Factor, FM:
Refer to Pg. 566
𝑇𝑎 𝑃𝑎
Q (ACFM) = SCFM( )( )
𝑇𝑠 𝑃𝑠
𝑇𝑎 = 200°F + 460 = 660°R
𝑇𝑠 = 60°F + 460 = 520°R
14.7 𝑝𝑠𝑖𝑎
𝑃𝑎 = 740 torr x = 14.313 psia
760 𝑡𝑜𝑟𝑟
14.7 𝑝𝑠𝑖𝑎
𝑃𝑎 = 760 torr x 760 𝑡𝑜𝑟𝑟 = 14.7 psia
550
CP = 1.45 ( )exp{12.1678 -1.31363[ln 14,830] +
500
0.09974 [ln (14,830)]2}
= $ 10,080
Blowers
• Blowers give compression ratios up to 2
• There are 2 main industrial blowers:
Blowers
Blowers
Blowers
CP = FM CB
• Base Cost (CB) Calculation
– Size Factor: Blower Power Consumption (PC)
S = PC = PB / ηM
where: PC is blower power consumption in hp Eqn 22.29,
pg567
**PB is blower brake horsepower in hp,
calculable by Eqn 22.30
**ηM is motor efficiency, usually 0.9 or
calculable by Eqn 22.18
Blowers
CP = FM CB
• Base Cost (CB) Calculation (…Continued)
**Steps to calculate PB and ηM ???
1. Identify Inlet Flowrate, Q (ACFM); Inlet & Outlet
Pressures, PI & PO (psia).
2. Identify Blower Efficiency, ηB (Slide #73 / Pg567)
3. Identify heat capacity ratio, k (CP/CV)
• Air & diatomic gases k = 1.4
• Monoatomic gases k = 1.67
Continued……
Blowers
CP = FM CB
• Base Cost (CB) Calculation (…Continued)
**Steps to calculate PB and ηM ???
4. Calculate Blower Brake Horsepower, PB :
Eqn 22.30,
pg567
Blowers
CP = FM CB
• Base Cost (CB) Calculation (…Continued)
– Base Cost for Blowers:
Centrifugal (Turbo) Blower (valid from PC = 5 to 1000 hp)
Eqn 22.32,
CB = exp{6.8929 + 0.7900 lnPC} pg568
Rotary Straight Lobe Blower (valid from PC = 1 to 1000 hp)
Eqn 22.33,
CB = exp{7.59176 + 0.79320lnPC - 0.0129 [lnPC]2} pg568
OR
Refer to Overall Blower Cost Curve @ Fig. 22.8 Pg. 568
Blowers
CP = FM CB
• Correction Factors – FM
– Blower Material Factor, FM, for materials other than
cast iron:
Refer to Pg. 566 (Same as Fans)
Aluminium FM = 0.60
(Additional material @ Pg. 568)
Compressors
• Compressors give compression ratios greater
than 2
• There are 3 main industrial compressors:
– Double-acting crosshead RECIPROCATING
compressor
• Or known as ‘Reciprocating Compressor’
– Multistage CENTRIFUGAL compressor
• Or known as ‘Centrifugal Compressor’
– Rotary twin-SCREW compressor
• Or known as ‘Screw Compressor’
Compressors
• Compressors may be driven by electric motor
(ƞ = 95% *), steam turbine (ƞ = 65% *) or gas
turbine (ƞ = 35% *)
*efficiency at 1,000 Hp
• Available up to 20,000 Hp
• For application below 200 Hp, electric motor
are used almost exclusively
Compressors
Centrifugal
Compressor
Reciprocating Screw
Compressor Compressor
Compressors
Reciprocating compressor Centrifugal compressor Screw compressor
Compressors
Compressors
CP = FD FM CB
• Base Cost (CB) Calculation
– Size Factor: Compressor Power Consumption (PC)
S = PC = PB / ηM
where: PC is compressor power consumption in hp Eqn 22.29,
pg567
**PB is compressor brake horsepower in hp,
calculable by simulation software
**ηM is motor efficiency, usually 0.9 or
calculable by Eqn 22.18
Note! Compressors usually involve high pressure gases, where ideal gas law do
not apply. Hence simulation software (with real gas equation of state) is
used to estimate PB.
Preliminary crude estimate of PB can be done by using Eqn22.30 Pg 567.
Compressors
CP = FD FM CB
• Base Cost (CB) Calculation (…Continued)
**Steps to calculate PB (crude estimate) and ηM ???
1. Identify Inlet Flowrate, Q (ACFM); Inlet & Outlet
Pressures, PI & PO (psia).
2. Identify Compressor Efficiency, ηC (Slide #85 / Pg569)
3. Identify heat capacity ratio, k (CP/CV)
• Air & diatomic gases k = 1.4
• Monoatomic gases k = 1.67
Continued……
Compressors
CP = FD FM CB
• Base Cost (CB) Calculation (…Continued)
**Steps to calculate PB (crude estimate) and ηM ???
4. Calculate Compressor Brake Horsepower, PB :
Eqn 22.30,
ηC pg567
Compressors
CP = FD FM CB
• Base Cost (CB) Calculation (…Continued)
**Steps to calculate PB (true value) and ηM ???
6. Accurate estimation of PB :
• Use Simulation Software (e.g. ASPEN PLUS) to obtain
REAL PB value of compressor, then use Eqn 22.18 Pg562
to estimate ηM.
Compressors
CP = FD FM CB
• Base Cost (CB) Calculation (…Continued)
– Base Cost for Compressors:
Centrifugal Compressor (valid from PC = 200 to 30,000 hp)
Eqn 22.36,
CB = exp{ 7.5800 + 0.80 lnPC } pg569
Reciprocating Compressor (valid from PC = 100 to 20,000 hp)
Eqn 22.37,
CB = exp{ 7.9661 + 0.80 lnPC } pg569
Screw Compressor (valid from PC = 10 to 750 hp)
Eqn 22.38,
CB = exp{ 8.1238 + 0.7243 lnPC } pg569
OR
Refer to Overall Compressor Cost Curve @ Fig. 22.9 Pg. 570
Cost Accounting and Capital Costs: Purchasing Costs Page 92
Fans, Blowers and Compressors
Compressors
CP = FD FM CB
• Correction Factors – FD, FM
– Compressor Drive Factor, FD, for compressor drive
other than electric motors:
Compressors
CP = FD FM CB
• Correction Factors – FD, FM
– Compressor Material Factor, FM, for compressor
material other than carbon steel:
Eqn 22.34,
pg569
stages
4. Repeat Steps 3 – 5 of Blower Calculation General Steps
5. Calculate CP for selected blower:
a. Determine Base Cost, CB, based on S, i.e. PC
b. Find FD and FM
c. Determine CP
6. Adjust CP with appropriate price index if necessary
Heat Exchangers
Heat Exchangers
Heat Exchangers
Usage Heating, cooling, condensing, and
vaporizing process streams
Types • Shell-and-tube
Main Focus
• Double-pipe
• Air-cooled fin-fan
• Compact heat exchanger
• Floating head
• Fixed head
• U-tube
• Kettle vaporizer
OR
Refer to Overall Shell-and-Tube HE Cost Curve @
Fig. 22.10 Pg. 571
CP = FP FM FL CB
Eqn 22.44,
pg571
FM = a + (A/100)b
where:
A is HE surface area in ft2
a, b are constants from
Table 22.25 Pg. 571
150℉ − 236.6℉
∆𝑇𝑀 = = 190.02℉
150℉
𝑙𝑛
236.6℉
Cost Accounting and Capital Costs: Purchasing Costs Page 117
Heat Exchangers
𝑄 69,360,000 𝐵𝑡𝑢/ℎ𝑟
𝐴= =
𝑈(∆𝑇𝑀 ) 50 𝐵𝑡𝑢 (190.02℉)
ℎ𝑟. 𝑓𝑡 2 . ℉
𝐴 = 𝟕𝟑𝟎𝟎𝐟𝐭 𝟐
• Pressure on both the shell and tube sides > 500 psig,
choose design pressure of 700 psig
Fired Heaters
Fired Heaters
Fired Heaters
Fired Heaters
CP = FP FM CB
• Base Cost (CB) Calculation
– Size Factor: Fired Heater Heat Duty (Q)
S=Q
where: Q is in Btu/hr
(valid range: 10-500 mil Btu/hr)
– Base Cost for Fired Heaters:
Eqn 22.49,
CB = exp{ 0.32325 + 0.766 lnQ } pg573
OR
Refer to Fired Heaters Cost Curve @ Fig. 22.12 Pg. 573
Fired Heaters
CP = FP FM CB
• Correction Factors – FP, FM
– Fired Heater Pressure Factor, FP, for pressure
other than 500 psig:
Fired Heaters
CP = FP FM CB
• Correction Factors – FP, FM
– Fired Heater Material Factor, FM :
Q = 18,390,000 Btu/hr
Design pressure of tube = 700psig
Fm due to significant conc H₂ = 1.7(stainless
steel)
2
700 700
𝐹𝑃 = 0.986 − 0.035 + 0.0175 = 1.015
500 500
550
𝐶𝑃 = 1.015 1.7 507,100 = $962,500
500
Pressure Vessels,
Distillation Towers,
Absorption and Stripping
Pressure Vessels and Towers
Pressure Vessels
Application:
• Reflux drum
• Flash drum
• Knock-out drum
Di
• Settlers
• Chemical reactors
L • Mixing vessels
• Vessels for fixed-
bed adsorption
• Storage drum
Towers
Application:
• Distillation
• Absorption
• Stripping
tS = tV + tC
Not in
where: textbook
tS is final shell thickness in inch
tV is average thickness in inch
tC is thickness for corrosion allowance in inch
tP = Pd Di / (2SE – 1.2Pd)
where: Eqn 22.60,
tP is required thickness to withstand internal pressure in inch pg575
Pd is design pressure in psig (psia – 14.7)
Di is vessel internal diameter in inch
S is maximum allowable stress @ design temp. Td in psi
E is weld efficiency, either 0.85 or 1.0
Td = TO + 50 oF
All temperature units are in oF
Refer to
Pg. 575
Refer to
Table @
Pg 576
Text,
tC = 1/8 inch pg576
Refer to
Pg. 576
OR
Refer to Overall Vessel Cost Curve @ Fig. 22.13 Pg. 574
Cost Accounting and Capital Costs: Purchasing Costs Page 158
Pressure Vessels and Towers
Refer to
Materials-of-
Construction FM
@ Table22.26
Pg576
Answer: Cp = $804,500
Plates
Plates
Previous subtopic
Plates/Trays
Packings
Packings
Packings
• Apart from trays, packings are also utilized in
vertical towers for
– Absorption
– Distillation
– Stripping
Previous subtopic
Types of Packings
Dumped Packings Structured Packings
▪ Random ▪ Layers of wire mesh or
corrugated sheet
Structured Packings
Advantages Disadvantages
▪ Reduce pressure drop ▪ More expensive in
dollars per cubic foot
▪ Higher stage of packing
efficiency in terms of
reduced HETS ▪ Not normally available
in carbon steel
▪ Offer capacity in
terms of reduced
diameter
Packings
• Correction Factors – VP
– VP : Volume of Packings in cubic feet (ft3)
For CPL of entire empty tower, apply Eq. 22.70, CPL =$63100
CPK = $52/ft3
But..
CE index (question) = 550
CPK given is indexed to CE = 500
So…
Cp = 550/500($1918220)
= $2110042
Final answer
= $ 2110042
Bookmark/
Indexing Guide
Bookmark/ Indexing Guide
Heat Exchangers
Eqn. / Tab./ Page
Item
Fig. / Text No.
Shell & Tube HE – Overall CP Eqn 22.43 571
Eqn 22.39,
Shell & Tube HE – CB 40, 41, 42 571
Fig 22.10
Shell & Tube HE – FP Eqn 22.45 571
Eqn 22.44
Shell & Tube HE – FM 571
Tab 22.25
Shell & Tube HE – FL Text 571
Double Tube HE – Overall CP Eqn 22.47 572
Eqn 22.46
Double Tube HE – CB 572
Fig 22.11
Double Tube HE – FP, FM Text 572
Fired Heaters
Eqn. / Tab./ Page
Item
Fig. / Text No.
Fired Heaters – Overall CP Eqn 22.50 573
Eqn 22.49
Fired Heaters – CB 573
Fig 22.12
Fired Heaters – FP Eqn 22.51 573
Fired Heaters – FM Text 573
Plates
Eqn. / Tab./ Page
Item
Fig. / Text No.
Plates – Overall CP Eqn 22.66 577
Plates - CBT Eqn 22.67 577
Text
Plates - FNT 577
Eqn 22.68
Plates - FTT Text 577
Plates - FTM Text 577
Packings
Eqn. / Tab./ Page
Item
Fig. / Text No.
Packings – Overall CP Eqn 22.69 578
Packings – Dumped CPK Tab 22.27 578
Packings – Structured CPK Text 579
Packings – CDR
Text 579
*Copy down CDR equation for easy reference
Exercise 22.4
Page 207
Exercise 22.4
Analysis of Problem
• To find out the Purchased Cost of…
– Column (Tower)
– Condenser (HEX)
– Reboiler (HEX)
– Reboiler Pump
– Combined Reflux and Distillate Pump
– Reflux Accumulator (Vessel)
• To estimate total bare-module cost
• To estimate total permanent investment (CTPI)
• CV = exp{7.2756 + 0.18255[ln(20,073)] +
0.02297[ln(20,073)]2} = $ 84,009
Pg 561
Previous Calculations
• Q= 140.97 GPM
• H= 283.6 ft
• Ws= 8.22 Hp
• CB= $3548
• nM= 0.87
The total purchase cost of the pump and motor is: $4,790 + $2,002 =
$ 6,792
From Table 22.11, the bare-module factor = 3.30.
Therefore, the bare-module cost = 3.3(6,792) = $ 22,414
Previous Calculations
• Q= 246.4 GPM
• H= 294.6 ft
• Ws= 14.37 Hp
• S= 246.4GPM(264.6ft)^0.5= 4228gpm-ft^0.5
• CB= $4063
• nM= 0.88
The total purchase cost of the pump and motor is: $5,485 + $2,905 =
$ 8,390
From Table 22.11, the bare-module factor = 3.30.
Therefore, the bare-module cost = 3.3(8,390) = $ 27,687
• AR = QR / Flux
= 9.917 x 106 / 12,000
= 826.42 ft2 > 200ft2
(Use shell-and-tube exchanger)
• For L/D = 2
V = π (D/2)2L = πD3/2
D = (2V/π)^(1/3) = (2x188.45/π)^(1/3)
D = 4.93 ft, L = 2D = 2(4.93) = 9.86 ft
• CV = exp{7.2756 + 0.18255[ln(3851)] +
0.02297[ln(3851)]2} = $ 31,209