You are employed at a chemical company and have recently been transferred from a

Question

You are employed at a chemical company and have recently been transferred from a plant that manufactures synthetic dyes to a new facility that makes specialty additives for the polymer resin industry. a. You have been asked to estimate the cost of manufacturing at this new facility. Would you i. Use Equation (8.2) to estimate COMd? li. Use data from the old plant where you worked, because you are very familiar with all the aspects of manufacturing for that process? ii Dig up information on the new process and use these figures? b. When would you use a relationship such as Equation (8.2)? COM,-0.180FC1 + 2.73COL + 1.23(Cur + CWT + CRM) (8.2)

Explanation / Answer

a) iii) Dig up information of the new peocess and then estimate the cost of manufacturing using the concepts from process economics

Why not option (i): As a new employee, I would not be sure of the accuracy of this equation and also, it can be general equation that was derived with a lot of assumptions which may not be suitable for the current facility

Why not option (ii): The old process is very different from the process used in the current facility and hence, comparing both will lead to highly inaccurate results.

b) The equation such as (8.2) can be used to analyse factors such as increase in manufactuing cost or to compare the fixed costs, replacement costs when things are quite straightforward only

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