http://www.che.com Chemical Engineering en-us 2013 Tue, 21 May 2013 15:35:55 EDT Compressors are a workhorse of the CPI. A variety of technologies, methods and best practices are available to obtain the lowest cost of ownership for compressors used in process plants. Follow the guidance presented here to get the best value from each compressor over the life of the unit... http://www.che.com/business_and_economics/cost_engineering/10473.html Wed, 1 May 2013 0:00:00 EDT This article provides detailed guidance for sizing centrifugal pumps early in the specification process, and provides several sample calculations to illustrate the concepts discussed... http://www.che.com/business_and_economics/cost_engineering/10179.html Fri, 1 Feb 2013 0:00:00 EST One approach to thoroughly assessing the value of an asset for purchase is to use a total cost of ownership (TCO) analysis. This article explains how to conduct a TCO analysis, and how that information can be used, along with other strategies, to prepare for and conduct negotiations with suppliers in equipment purchasing transactions... http://www.che.com/business_and_economics/cost_engineering/8838.html Sun, 1 Jan 2012 0:00:00 EST To stay on budget, major capital projects often call for aggressive schedules. Engineering, procurement and construction (EPC) contractors often end up using work processes that are not part of an established or standard work procedure, particularly for critical paths related to the piping design, supply, fabricate and erect processes. Contractors must acknowledge this risk, take steps to address it in order to minimize exposure, and be able to mitigate the inevitable surplus that will result. This article shows you how to do this.  ... http://www.che.com/business_and_economics/cost_engineering/8617.html Tue, 1 Nov 2011 0:00:00 EDT In today’s economy, businesses have become more cash-conscious. The focus on expenses has become increasingly important to the bottom line. Typically, the top three business expenses are wages, raw material costs and taxes. If jobs are cut, or raw material purchases are reduced, margins may be salvaged in the short term, but over a period of time, lack of inventory and production shutdowns can prove to be costly. A benign way of cutting costs is reducing the tax burden. By taking full advantage of the R&D tax credit, many chemical process industries (CPI), with annual sales ranging from five million to more than one billion dollars, have achieved annual tax savings of anywhere between $50,000 and $1.5 million.... http://www.che.com/business_and_economics/cost_engineering/8498.html Tue, 27 Sep 2011 0:00:00 EDT Evaluating and comparing the computer programs available for capital cost estimation provides a better understanding of both their use and the methods behind them. The goals of this article are to evaluate available cost estimation programs, apply the programs to case studies of plant design and to analyze the cost estimates for different types of equipment. Five programs are discussed here — CapCost, EconExpert, AspenTech Process Economic Analyzer (AspenPEA), Detailed Factorial Method (DFP) and Capital Cost Estimation... http://www.che.com/business_and_economics/cost_engineering/8359.html Mon, 1 Aug 2011 0:00:00 EDT PCMS and Track, two cost-control software packages used in petroleum refining, chemical and petrochemical industries, have joined forces. Management Controls, Inc., the owner of Track, has acquired PCMS (Project Control Management System). Users will soon... http://www.che.com/business_and_economics/cost_engineering/6601.html Mon, 28 Mar 2011 0:00:00 EDT A newly launched front-end design tool from this company allows for rapid development and evaluation of capital project options in the process industries. The software tool integrates flowsheet development, 3-D layout, factored... http://www.che.com/business_and_economics/cost_engineering/7442.html Mon, 28 Mar 2011 0:00:00 EDT Throughout the chemical process industries (CPI), project owners often track key performance indicators (KPIs) to ensure that all participants are able to attain or improve important performance objectives associated with their investments. By developing incentives and penalties that are tied to specific KPIs, owners are able to measure, and in some cases reward achievements attained by a given contractor during both the front-end loading (FEL) and execution of the project. This article addresses the rules for establishing which types of incentives should be used in each project stage, and discusses some of the advantages and disadvantages of the parameters presented.... http://www.che.com/business_and_economics/cost_engineering/6376.html Tue, 1 Feb 2011 0:00:00 EST The Economic Design Model is a method to formalize this disciplined approach to cost considerations. The model is helpful for early-stage decision-making in product or process development. The heart of the model is creating a thorough and comprehensive list of options to foster consideration of multiple options before converging on a decision.... http://www.che.com/business_and_economics/cost_engineering/6192.html Wed, 1 Dec 2010 0:00:00 EST