Cost Of Goods Analysis, Project Economic Evaluation, Cost Reduction, COGs

Economic Evaluation Report (1st Report) Tables Equipment Purchase Cost Table SuperPro has built-in functions that estimate equipment purchase cost based on size, material of construction, and other characteristics. The user gets the option to designate his/her own equipment purchase cost or provide his/her own guidelines (in power-law format) for estimating the cost. Starting with version 5.0, an individual may create an equipment database (in MS Access format) and store equipment-related info (including cost data) in a centralized and easily retrievable way. Fixed Capital Investment Table The estimation of the fixed capital investment is done using multipliers. The “Installation” multiplier is equipment specific.

All other multipliers are process specific. The flexibility is had by The user to modify all the multipliers. Starting with version 5.0, all the fixed capital investment multipliers are stored in the data source as part of the definition of the MANUFACTURING UNIT. Associating a formula (process) with a manufacturing facility in the database enables an individual to use all the price parameters of that facility for the cost analysis of this process. Labor Cost Table The labor demand is estimated by summing in the labor dependence on each operation.

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Again the user gets the option to override what this program calculates. The labor unit cost and the multipliers for fringe benefits and supervision are specified at the Section level. A Section is a set of unit procedures that can represent an identifiable part of an extended process. For example, the flowsheet that the following table was extracted was split into four sections (Product Synthesis, Purification and Isolation, Final Purification, and Crystallization).

Raw Materials Cost Table The amount of recycleables is calculated predicated on the material amounts. The machine cost is retrieved from the component database. The user has the option to override the unit cost (purchasing price) in the component database. Year. The following table displays a summary of the operating cost for the whole process (flowsheet).

The following table provides breakdowns per flowsheet section and item. Each column symbolizes a section and the “%” contribution of each section is shown on the bottom row (bluish background). For example, the Synthesis section is accountable for 37.23% of the entire operating cost. By looking as of this table, you can quickly identify the financial “hot-spots” of a process, which will be the expensive elements of an activity.

The last desk of this report provides a breakdown of recycleables cost per section and per item. Sensitivity Analysis Studies After a model for the entire process is developed in SuperPro Designer, the user can use the tool to ask and readily answer “imagine if” questions and carry out sensitivity analysis regarding key design variables. For instance, the physique below shows the machine cost of a restorative monoclonal antibody as a function of product titer in the broth (100, 250, and 500 mg/L) and as a function of production rate. The full total results of such analyses can assist in project selection and R&D planning.