CHEN4362- PLANT DESIGN AND ECONOMICS

INTRODUCTION

Contents
INTRODUCTION
CHEMICAL ENGINEERING PLANT DESIGN
PROCESS DESIGN DEVELOPMENT
FLOWSHEET DEVELOPMENT
COMPUTER-AIDED DESIGN
COST ESTIMATION
PROFITABILITY ANALYSIS OF INVESTMENTS
OPTIMUM DESIGN
OPTIMUM ECONOMIC DESIGN
OPTIMUM OPERATION DESIGN
PRACTICAL CONSIDERATION IN DESIGN
ENGINEERING ETHICS IN DESIGN
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DESIGN

Design is a creative activity

Design is an iterative process
Design is team work
Does not exist at the
beginning of the project
Design objective?
Design begins with specific
requirement by the customers
Design depends on the nature
of the constraints like internal
constraints and external
constraints

DESIGN
Design definition
- creative activity and is defined as the synthesis,
the putting together of ideas to achieve a desired
purpose or
the creation of manufacturing
process to fulfil a particular need.
Process design
is the sequence of chemical and physical
operations; operating conditions or the general
arrangement of equipment needed to ensure
proper functioning of the plant
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 Process Design:
It includes group of items which could be prepared on paper before
implementing it, such as flow sheets, material balance, energy balance,
and specification sheets.

Plant Design:
It includes plant location and plant layout.

Plant Design includes all engineering aspects of new chemical

plants/ processes and the expansion or revision of existing ones

Chemical Engineering Design

Construction of new chemical plants.
Expansion or revision of existing plants in order to increase the
productivity.
Modification of existing plant in order to change the product or the way
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of production.

A plant-design project moves to completion through a series

of stages such as is shown in the following:
1. Inception- Commencement
2. Preliminary evaluation of economics and market
3. Development of data necessary for final design
4. Final economic evaluation
5. Detailed engineering design
6. Procurement
7. Erection
8. Start up and trial runs
9. Production
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Team work
Most effective design is when a design team
members are familiar with fundamental and general
aspects of other engineers in the design team
Leadership of project manager and management is
critical in the success of the project
Consideration of Business aspects of the design is a
critical factor
Failure to consider all the design aspects can create
safety, economic and process challenges.

Failure examples
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Overall Design consideration

Process design development

Flow sheet development

Computer aided design
Cost estimation
Profitability analysis of investment
Optimum design
Optimum operation design
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CHEMICAL ENGINEERING PLANT DESIGN

Plant
Design includes all engineering aspects
involved in the development of either a new, modified,
or expanded industrial plant. In this development, the
chemical engineer will be making economic
evaluations of new processes, designing individual
pieces of equipment for the proposed new venture,
or developing a plant layout for coordination of the
overall operation. Because of these many design
duties, the chemical engineer is many times referred to
here as a design engineer.
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CHEMICAL ENGINEERING PLANT DESIGN

On the other hand, a chemical engineer

specializing in the economic aspects of the
design is often referred to as a cost engineer. In
many instances, the term process engineering
is used in connection with economic evaluation
and general economic analyses of industrial
processes, while process design refers to the
actual design of the equipment and facilities
necessary for carrying out the process.
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PROCESS DESIGN DEVELOPMENT

Process design is the sequence of chemical and physical

operations; operating conditions or
the general
arrangement of equipment needed to ensure proper
functioning of the plant;

The development of a process design, as outlined in Chap. 3, involves

many different steps. The first, of course, must be the inception of the
basic idea. This idea may originate in the sales department, as a
result of a customer request, or to meet a competing product. It
may occur spontaneously to someone who is familiar with the aims
and needs of a particular company.
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PROCESS DESIGN DEVELOPMENT

The methods for carrying out a design project may be

divided into the following classifications, depending
on the accuracy and detail required:
1. Preliminary or quick-estimate designs.
2. Detailed-estimate designs.
3. Firm process designs or detailed designs.

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FLOWSHEET DEVELOPMENT

Basic Steps in flowsheet synthesis

Gathering Information and Database creation
Basic thermo-physical properties for all chemicals
considered
Information about reaction and conditions
Yield
Product purity
Raw materials
Process bounding (restrictions)
Utilities
Environmental Impact and toxicity of components
Cost of equipment, utilities and sub-products. Chemical
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prices

FLOWSHEET DEVELOPMENT
Once the process concept has been designed which produces process flow sheet,

the equipment design then has to be performed..

Distillation
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COMPUTER-AIDED DESIGN
Various types of computer programs and techniques are used to carry out the
design of individual pieces of equipment or to develop the strategy for a full
plant design. This application of computer usage in design is designated as
computer-aided design

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COST ESTIMATION

The final process-design stage is completed, it, becomes possible to

make accurate cost estimations because detailed equipment
specifications and definite plant-facility information are available.
Direct price quotations based on detailed specifications can then be

obtained from various manufacturers. However, as mentioned earlier,

no design project should proceed to the final stages before costs are
considered, and cost estimates should be made throughout all the
early stages of the design when complete specifications are not
available.
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COST ESTIMATION

Evaluation of costs in the preliminary design phases

is

sometimes

called

guesstimation

but

the

appropriate designation is predesign cost estimation.

Such estimates should be capable of providing a basis

for company management to decide if further capital

should be invested in the project.

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Cost Estimation
In finalizing the process and equipment design, several stages of economic analysis
could be conducted

First step;
EP 1 = Revenue Cost of Raw Material
Second Step (after mass balance developed)
EP 2 = Revenue Cost of Raw Material - Utility
Third Step (after equipments designed)
EP 3 = Revenue Cost of Raw Material Utility Annualised Cost of Equipment
The economics analysis continues with other costs (manpower, insurance etc) .

Pay back time,

Return on Investment
Internal Rate of Return

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with profitability analysis conducted at the end to assess project viability

PROFITABILITY ANALYSIS OF INVESTMENTS

A major function of the directors of a manufacturing firm is to maximize the longterm profit to the owners or the stockholders. A decision to invest in fixed facilities

carries with it the burden of continuing interest, insurance, taxes, depreciation,

manufacturing costs, etc., and also reduces the fluidity of the companys future
actions. Capital-investment decisions, therefore, must be made with great care.

Since all physical assets of an industrial facility decrease in value with age, it is
normal practice to make periodic charges against earnings so as to distribute the
first cost of the facility over its expected service life.

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PROFITABILITY ANALYSIS OF INVESTMENTS

This depreciation expense as detailed in Chap. 9,

unlike most other expenses, entails no current outlay

of cash. Thus, in a given accounting period, a firm has

available, in addition to the net profit, additional

funds corresponding to the depreciation expense. This

cash is capital recovery, a partial regeneration of

the first cost of the physical assets.
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