Engineering Economics and Economic Design for Process Engineers: 1st Edition (Hardback) book cover

Engineering Economics and Economic Design for Process Engineers

1st Edition

By Thane Brown

CRC Press

368 pages | 79 B/W Illus.

Purchasing Options:$ = USD
Hardback: 9780849382123
pub: 2006-10-27
eBook (VitalSource) : 9780429127090
pub: 2016-04-19
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Engineers often find themselves tasked with the difficult challenge of developing a design that is both technically and economically feasible. A sharply focused, how-to book, Engineering Economics and Economic Design for Process Engineers provides the tools and methods to resolve design and economic issues. It helps you integrate technical and economic decision making, creating more profit and growth for your organization. The book puts methods that are simple, fast, and inexpensive within easy reach.

Author Thane Brown sets the stage by explaining the engineer’s role in the creation of economically feasible projects. He discusses the basic economics of projects — how they are funded, what kinds of investments they require, how revenues, expenses, profits, and risks are interrelated, and how cash flows into and out of a company. In the engineering economics section of the book, Brown covers topics such as present and future values, annuities, interest rates, inflation, and inflation indices. He details how to create order-of-magnitude and study grade estimates for the investments in a project and how to make study grade production cost estimates.

Against this backdrop, Brown explores a unique scheme for producing an Economic Design. He demonstrates how using the Economic Design Model brings increased economic thinking and rigor into the early parts of design, the time in a project’s life when its cost structure is being set and when the engineer’s impact on profit is greatest. The model emphasizes three powerful new tools that help you create a comprehensive design option list. When the model is used early in a project, it can drastically lower both capital and production costs.

The book’s uniquely industrial focus presents topics as they would happen in a real work situation. It shows you how to combine technical and economic decision making to create economically optimum designs and increase your impact on profit and growth, and, therefore, your importance to your organization. Using these time-tested techniques, you can design processes that cost less to build and operate, and improve your company’s profit.

Table of Contents

Engineering Economics

The Economic Side of Engineering

The Engineer’s Role in Profit Creation

Economic Viability

Project Authorization

Types of Projects


Investments, Revenues, Expenses, and Profit

Economic Work After Funding

Corporate Cash Flow


Problems and Exercises


Time Value of Money

Cash Flow Diagrams


Present Worth, Future Worth, and Annuities

Before- and After-Tax Considerations

Inflation and Indices


Problems and Exercises

Additional Topic: Compounding Other Than Annually

Problems and Exercises

Estimating Investments

Capital Costs Defined

Estimating Capital

Estimating the Other Investments



Additional Topic: Types of Estimates


Estimating Production Cost

Production Costs Defined

Fixed and Variable Costs

Estimating Methods


Problems and Exercises

Additional Topic: Product Cost and General Expense

Economic Evaluation Methods

Evaluation Methods

Other Methods

Analysis of Risk


Problems and Exercises

Additional Topics: Creating Guidelines for Rapid ROI Calculation

What To Use Constant Dollars Or Actual Dollars

Economic Design

Economic Design: A Model

Defining Economic Design

The Economic Design Model



Defining Objectives

Why Define Objectives?

What Do Good Objectives Look Like?

An Example

Project objectives

How to Get Input from the Key Stakeholders (and Ensure it Is Correct)


Problems and Exercises


Creating Options: Flow Sheet Development.

Design (or Project) Phases

Flowsheet Development


Problems and Exercises

Additional Topic: Types of Flowsheets

Creating Options: Creating the List

General Methods

Process Development Methods

Feasibility and Conceptual Engineering


Problems and Exercises


Option/Alternate Analysis

Technical Feasibility Comes First

Economic Analysis Methodology

The Economics of Selecting Equipment

The Economics of Plant Siting


Problems and Exercises

Additional Topic: How to Decide Whether to Install Capacity for an Assumed Future Need


Economic Design Case Studies

Optimal Cooling Water Temperature in a Cooler

Optimal Catalyst Usage in a Reactor/Filter System

Optimal Heat Recovery in a Heat Exchanger Loop

What to Choose: A Grass-Roots Plant or the Expansion of an Existing Plant

Optimum Number of Plants


Appendix I Definitions

Appendix II Indices

Appendix III Compound Interest Tables

Appendix IV Equipment Pricing Data

Appendix V Design Phases: Inputs and Outputs Index

Subject Categories

BISAC Subject Codes/Headings:
SCIENCE / Chemistry / Industrial & Technical
TECHNOLOGY & ENGINEERING / Engineering (General)