PM6801 - PROCESS ENGINEERING ECONOMICS (Syllabus) 2013-regulation Anna University

PM6801 - PROCESS ENGINEERING ECONOMICS (Syllabus) 2013-regulation Anna University

PM6801	PROCESS ENGINEERING ECONOMICS	LPTC

3003

OBJECTIVE:

The objective of this course is to teach principles of cost estimation, feasibility analysis, management, organization and quality control that will enable the students to perform as efficient managers.

UNIT I	ENGINEERING FLOW DIAGRAMS AND SAFETY ASPECTS	9

Process Design Diagrams / Documents: Introduction to block, process flow, Logic, Information flow diagrams. Preparation of PID, trip and interlock systems, MOC and valve selection, color code of pipeline, Equipment datasheets, Layout engineering (Plot Plan)
Safety In Process and Plant Design: Intrinsic / extrinsic safety, Safety of personnel, equipment and plant classification of plant areas, Fire protection systems, Flare systems, Safety relief valves, Flame arrestors, rupture disc and explosion venting etc., Health , Safety and Environmental hazards, Loss Prevention: Hazard Assessment Techniques: HAZOP, HAZAN, Fault Tree Analysis, etc

UNIT II	PROJECT ENGINEERING	9

Project Management and Statutory Regulations: Site Layout, Plant Layout, Battery Limits and Off Site Facilities, Stages of project, Use of Milestone chart / GANT chart/BAR chart, PERT and CPM techniques for project monitoring and control, Preparation of project reports (Feasibility Reports), Annual report of a company.

UNIT III	OVERVIEW OF PROCESS ECONOMICS	9

Economic decision making in the CPI, Process plant components, elements of costing and principles of accounting, Total cost components, Types and methods of cost estimation, Cost estimation for equipment and plant, Direct / indirect manufacturing costs.

UNIT IV	MANUFACTURING COST ESTIMATION	9

Various cost indices, William’s sixth tenth rule, methods of estimation of fixed capital, product cost estimation, Financing, Interest and investment cost, present worth and discount annuities, Source of capital, Depreciation, Taxes and Insurances, Balance Sheets, Perpetuity, Inflation.

UNIT V	PROFITABILITY: ALTERNATIVE INVESTMENTS AND REPLACEMENTS	9

Alternative investments and replacements, profitability standards, discounted cash flow, rate of return, capitalized cost, payment period, alternative investments, analysis with small investments, increments and replacements, Break Even Analysis.

TOTAL : 45 PERIODS

OUTCOME:

Students gain the knowledge on cost and asset accounting, time value of money, profitability, alternative investments, minimum attractive rate of return, sensitivity and risk analysis.

TEXT BOOKS:

1. M.S. Peters and K. D. Timmerhaus, “Plant Design and Economics for Chemical Engineers”, Fourth Edition, McGraw Hill International Book Co., 1991
2. James R. Cooper, “Process Engineering Economics”, Marcel Delkker Inc, New York, 2003
3. Coulson, J.M., Richardson J.E. and Sinnott R.K., “Chemical Engineering”, Vol. VI, Pergamon Press, 1991.
4. R. Turton, R. C. Bailie, W. B. Whiting, and J. A. Shaeiwitz, “ Analysis, Synthesis, and Design of Chemical Processes”, Prentice Hall, Upper Saddle River, New Jersey, 1998.
5. L. S. Srinath, “PERT and CPM, Principles and Applications”, Third Edition, East-West Press, 2002.