Syllabus - Process Plant Economics & Management (CM 803 (A))

Chemical Engineering

Process Plant Economics & Management (CM 803 (A))

VIII

Unit-I

Introduction

General design considerations; the hierarchy of chemical process design, the nature of process synthesis and analysis; developing a conceptual design and finding the best flow sheet: input information and batch versus continuous,

Unit-II

Management

Importance Factors for Selection of Plant, Location; Site Selection and Preparation; Plant Layout and Installation,Rate of return, breakeven point (BEP), payback period, discount rate of return, net present worth, internal rate of return, comparing investment alternatives.

Unit-III

Cost Analysis

Product cost estimation. Cash Flows: Time value of money, investment, costs, sales, profits, taxes, Depreciation.

Unit-IV

Process Economics

Economic feasibility of project using order-of magnitude cost estimates, plant and equipment cost estimation, balance sheet, and profit and loss account. financial ratio analysis,

Unit V

Plant Design

Input/output structure of the flow sheet; Recycle structure of the flow sheet; Separation system; Heat Exchanger Networks. Process design development and general design considerations.

Course Objective

To provide the fundamentals of economics, scale up methods and design strategies of plants.

Course Outcome

["To study the concepts of chemical process plant design", "To understand the economics of plant establishment.", "To understand the cost analysis of products", "To study the process to check the financial feasibility of plant.", "To study the overall network design of process plant."]

Practicals

Reference Books

  • Douglas, J. M., “Conceptual Design of Chemical Processes,” McGraw-Hill, 1989.

  • Peters, M. S. and Timmerhaus, K. D., “Plant Design and Economics for Chemical Engineers,” 4th ed., McGraw-Hill, 1991.

  • Biegler, L., Grossmann, I. E. and Westerberg, A. W., “Systematic Methods of Chemical Engineering and Process Design,” Prentice Hall, 1997.