Table of contents for Engineering economics and economic design for process engineers / Thane Brown.

Bibliographic record and links to related information available from the Library of Congress catalog.

Note: Contents data are machine generated based on pre-publication provided by the publisher. Contents may have variations from the printed book or be incomplete or contain other coding.


Counter
 
TABLE OF CONTENTS
 INTRODUCTION
ECONOMICS IN ENGINEERING
ECONOMIC DESIGN
WHAT IS IT?
HOW DOES ONE DO ECONOMIC DESIGN--A MODEL
WHEN DOES ONE DO ECONOMIC DESIGN?
HOW THE BOOK IS ORGANIZED
TERMINOLOGY
SECTION I: ENGINEERING ECONOMICS
Chapter 1: THE ECONOMIC SIDE OF ENGINEERING
THE ENGINEER¿S ROLE IN PROFIT CREATION
ECONOMIC VIABILITY
PROJECT AUTHORIZATION
TYPES OF PROJECTS
FUNDING
Funding Considerations. 
Funding Decisions
INVESTMENTS, REVENUES, EXPENSES AND PROFIT
Investments. 
Revenues, Expenses and Profits
Project Risks and Risk Analysis. 
ECONOMIC WORK AFTER FUNDING
CORPORATE CASH FLOW
WHAT IS CASH FLOW?
OPERATING ACTIVITES
After-Tax Profit
Depreciation/Amortization. 
Working Capital Changes. 
INVESTING ACTIVITES
Asset Sales. 
Capital Investments
Acquisitions. 
Investing Gains & Losses. 
FINANCING ACTIVITES
Dividends to Shareholders. 
Treasury Stock Purchase. 
Change in Debt. 
YEAR END CASH BALANCE
Exchange Rate Changes. 
AN EXAMPLE ILLUSTRATES
SUMMARY
PROBLEMS AND EXERCISES
Chapter 2: TIME VALUE OF MONEY
CASH FLOW DIAGRAMS
INTEREST
SIMPLE INTEREST
COMPOUND INTEREST
Compounding Other Than Annually. 
PRESENT WORTH, FUTURE WORTH, ANNUITIES
PRESENT & FUTURE WORTH
ANNUITIES
MAKING CALCULATIONS
Formulas and cash flow diagrams. 
Determining n, Counting Periods. 
Compound Interest Tables
BEFORE AND AFTER-TAX CONSIDERATIONS
DEPRECIATION
Straight-line
Modified Accelerated Cost Recovery System (MACRS). 
AFTER-TAX CASH FLOWS
INFLATION & INDICES
SUMMARY 
PROBLEMS AND EXERCISES
ADDITIONAL TOPIC
COMPOUNDING OTHER THAN ANNUALLY
PROBLEMS AND EXERCISES
Chapter 3: ESTIMATING INVESTMENTS
CAPITAL COSTS DEFINED
ESTIMATING CAPITAL
INFLATION ADJUSTMENTS 
ORDER-OF-MAGNITUDE ESTIMATES (OOM)
Ratioing by capacity. 
Scaling by capital/unit of capacity or by capital/unit of sales. 
Other. 
STUDY ESTIMATES
The Lang Method. 
The Hand Method
Adjusting Lang and Hand Factors for Materials Other Than Carbon Steel. 
Other Factors. 
Instrumentation Factors
Building Factors (only for use with Hand Factors)
Place Factors
The Methods in Final Form
Creating One¿s Own Factors
Other Factor Methods
EQUIPMENT PURCHASE COST ESTIMATING 
AN EXAMPLE ILLUSTRATES THE METHODS
The Lang method. 
The Hand method
Observations/Conclusions
HOW TO USE THE FACTORS WITH SPARE AND USED EQUIPMENT
ESTIMATING THE OTHER INVESTMENTS
WORKING CAPITAL
STARTUP EXPENSES
SUPPLIER ADVANCES & ROYALTIES
SUMMARY	
PROBLEMS/EXERCISES
ADDITIONAL TOPICS
TYPES OF ESTIMATES
Chapter 4: ESTIMATING PRODUCTION COST
PRODUCTION COSTS DEFINED
COST CATEGORIES 
FIXED AND VARIABLE COSTS
ESTIMATING METHODS
GENERAL
Inflation adjustments
Plant production vs design rate
FLEXING EXISTING COSTS FOR PRODUCTION VOLUME CHANGES
STUDY ESTIMATES
Detailed Estimate Subcategories.
Raw/Packaging Materials and Utility Costs
Operating Labor
The Wessell Ratio
The Ulrich Method
Product Delivery. 
Factored Subcategories
Employee benefits. 
Supervision. 
Laboratory
Maintenance. 
Insurance & Taxes
Operating Supplies. 
Plant Overhead
Depreciation
SUMMARY
AN EXAMPLE ILLUSTRATES
PROBLEMS AND EXERCISES
ADDITIONAL TOPIC
PRODUCT COST & GENERAL EXPENSE
Chapter 5: ECONOMIC EVALUATION METHODS
EVALUATION METHODS
NET PRESENT VALUE, NPV
ANNUAL COST, AC
WHEN IS YEAR 1 FOR A TYPICAL PROJECT? 
NPV or AC?
RETURN ON INVESTMENT, ROI
BREAKEVEN VOLUME
OTHER METHODS
BENEFIT-COST RATIO
YEARS-TO-PAYOUT
CAPITALIZED COST
ANALYSIS OF RISK 
SENSTIVITY ANALYSIS
DECISION TREES 
SUMMARY
PROBLEMS AND EXERCISES
ADDITIONAL TOPICS
CREATING GUIDELINES FOR RAPID ROI CALCULATION
WHAT TO USE--CONSTANT DOLLARS OR ACTUAL DOLLARS
SECTION II: ECONOMIC DESIGN
Chapter 6: ECONOMIC DESIGN: A MODEL
DEFINING ECONOMIC DESIGN
THE ECONOMIC DESIGN MODEL
DEFINING OBJECTIVES
CREATING OPTIONS
Flowsheet Development. 
Creating an Option List. 
ANALYZING & SELECTING OPTIONS
Technical Feasibility Comes First
Assess Costs Of The Technically Feasible Options. 
Estimating Investments. 
Estimating Production Cost. 
Selecting an Option. 
SUMMARY 
Chapter 7: DEFINING OBJECTIVES
WHY DEFINE OBJECTIVES?
WHAT DO GOOD OBJECTIVES LOOK LIKE?
AN EXAMPLE
PROJECT OBJECTIVES
BUSINESS OBJECTIVES
TECHNICAL OBJECTIVES
HOW TO GET INPUT FROM THE KEY STAKEHOLDERS (AND ENSURE IT¿S CORRECT)
GETTING MANAGER INPUT
Business Manager Interview Structure. 
Technical Manager Interview Structure. 
Conducting the Interview. 
WRITING THE OBJECTIVES DOWN
SUMMARY
PROBLEMS AND EXCERCISES
Chapter 8: CREATING OPTIONS: FLOW SHEET DEVELOPMENT
DESIGN (OR PROJECT) PHASES
FLOWSHEET DEVELOPMENT
THE GENERIC BLOCK FLOW DIAGRAM
TECHNICAL FUNCTION FLOWSHEETS
THE TECHNICAL FUNCTION DEFINITION
SUMMARY
PROBLEMS AND EXERCISES
ADDITIONAL TOPIC
TYPES OF FLOWSHEETS
BLOCK FLOW DIAGRAMS
PROCESS FLOW SHEETS
PROCESS & INSTRUMENTATION DIAGRAMS (P&ID¿s)
Chapter 9: CREATING OPTIONS: CREATING THE LIST
GENERAL METHODS
BRAINSTORMING
THE 6-3-5 METHOD
PROCESS DEVELOPMENT METHODS
UNIT OPERATION GUIDES
Use Of The Guides. 
GENERAL PROCESS & PROCESS INTERACTION QUESTIONS
The Questions--Further Thoughts. 
Should a product be bought or made?
Should the process be batch or continuous? 
FEASIBILITY and CONCEPTUAL ENGINEERING
THE FEASIBILITY/CONCEPTUAL CHECKLIST
The Checklist--Further Thoughts. 
Siting considerations. 
Should an existing plant or process be modified or a new one be built? 
Should there be one or multiple units?
Should there be surge between UO¿s? How much? 
Define and optimize the heat recovery system. 
Optimize the equipment. 
SUMMARY
PROBLEMS AND EXERCISES
Chapter 10: OPTION/ALTERNATE ANALYSIS
TECHNICAL FEASIBILITY COMES FIRST
ECONOMIC ANALYSIS METHODOLOGY
VARIABLE SELECTION
EQUIPMENT SIZING¿COST ESTIMATION
COMPARE THE OPTIONS ECONOMICALLY
Use the Same Economic Life. 
THE ECONOMIC DESIGN POINT
THE ECONOMICS OF SELECTING EQUIPMENT
PUMPS: PRELIMINARY SELECTION
Technical Considerations.
Economic considerations. 
Selection Guideline. 
HEAT EXCHANGERS: PRELIMINARY SELECTION
Technical Feasibility. 
Economic Considerations. 
Examples Illustrate.
THE ECONOMICS OF PLANT SITING
HOW TO SET UP THE ECONOMIC STUDY
HOW TO GO ABOUT ROUGH SITING
Subdividing the Distribution Area. 
Locating Plants Based Upon Customer and Supplier Locations. 
The Tie-Line Method. 
The Coordinate Method. 
SITING CRITERIA
Proximity to Suppliers and Customers
Labor Considerations. 
Utility Availability and Cost
Health, Safety and Environmental Considerations. 
Locale. 
Community Considerations. 
SUMMARY
ECONOMIC COMPARISONS
ECONOMIC EQUIPMENT SELECTION
ECONOMIC PLANT SITING
PROBLEMS AND EXERCISES
ADDITIONAL TOPIC
HOW TO DECIDE WHETHER TO INSTALL CAPACITY FOR AN ASSUMED FUTURE NEED 
THE TWO OPTIONS
THE BREAKEVEN POINT & DECISION GUIDELINES
The Decision Making Guidelines. 
CALCULATION OF THE BREAKEVEN POINT, nb
EXAMPLES ILLUSTRATE
Chapter 11: ECONOMIC DESIGN CASE STUDIES
OPTIMUM COOLING WATER TEMPERATURE IN A COOLER
Problem Statement
Analytical Methodology
Problem Solution
Find The Economic Design Point
OPTIMUM CATALYST USAGE IN A REACTOR/FILTER SYSTEM
Problem Statement
Analytical Methodology
Problem Solution
Find The Economic Design Point
OPTIMUM HEAT RECOVERY IN A HEAT EXCHANGER LOOP
Problem Statement
Analytical Methodology
Problem Solution
Find the Economic Design Point
WHAT TO CHOOSE: A GRASS ROOTS PLANT OR THE EXPANSION OF AN EXISTING PLANT
Problem Statement
Analytical Methodology
Problem Solution
The Economic Design Point
OPTIMUM NUMBER OF PLANTS 
Problem Statement
Analytical Methodology
Problem Solution
The Economic Design Point
APPENDICES
APPENDIX I: DEFINITIONS	
APPENDIX II: INFLATION INDICES
	CHEMICAL ENGINEERING PLANT COST INDEX
PRODUCER PRICE INDEX
APPENDIX III: COMPOUND INTEREST TABLES	
APPENDIX IV: EQUIPMENT PRICING DATA 	
AGITATORS
BLOWERS
BOILERS
CENTRIFUGES
COLUMNS
COLUMN INTERNALS
COMPRESSORS
COOLING TOWERS
DUST COLLECTORS
FANS
HEAT EXCHANGERS
PIPING
PRESSURE VESSELS
PUMPS
TANKS, STORAGE
APPENDIX V: PROJECT PHASES: INPUTS AND OUTPUTS	
THE PROCESS DEVELOPMENT PHASE
THE FEASIBILITY PHASE
THE CONCEPTUAL PHASE

Library of Congress Subject Headings for this publication:

Engineering economy.