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Operating Cost
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ECONOMICS
9.2e Up-Front Royalties
The up-front royalties account for the payments made for use of assets, resources, patents, etc.
prior to the initiation of a project. In SuperPro Designer, this cost is specified at the section
level through the Capital Investment Dialog: Misc Tab.
9.2f Capital Investment Charged to This Project
For each section, you can modify the fraction of the DFC that is assigned to this project. This is
useful in situations of multi-product facilities, in which an entire section or certain equipment
of a section may be utilized by multiple projects. This cost allocation can be made either on a
section-wide basis or on a equipment-by-equipment basis. In the latter case, the user specifies
the fraction of an equipment’s purchase cost in that section which is assigned to this project.
This information can be specified through the Capital Investment Dialog: Cost Alloc Tab.
If the DFC of a section is set by user, then only the section-wide cost allocation option will be
available for that section.
The Capital Investment Charged to This Project is determined based on the cost allocation
specifications for each section. It is calculated similarly to the Total Capital Investment except
that it accounts only for the fraction of DFC that is assigned to this project. Its value is listed in
the Executive Summary Dialog: Summary Tab and also in Sections 1 (Executive Summary)
and 10 (Profitability Analysis) of the Economic Evaluation Report (EER). Note that the latter
section is only available if the revenues of a project are positive.
9 .3 OPERATING COST
The operating cost of a project includes costs that are related to the demand for a number of
resources (i.e., raw materials, consumables, labor, heating/cooling utilities and power), as well
as additional operational costs. More specifically, the annual operating cost (AOC) is calculated
as the sum of the following cost items:
1.
Materials cost
2.
Consumables cost
3.
Labor-dependent cost
4.
Utilities (heating/cooling utilities and power) cost
5.
Waste treatment/disposal cost
6.
Facility-dependent cost
7.
Laboratory/QC/QA cost
8.
Transportation cost
9.
Miscellaneous costs
10.
Advertising/selling costs
11.
Running royalties
Economics 9-11