Curriculum Map

Course: Engineering Economics (Chemical Engineering)

Description
This curriculum map provides a mapping of content from Perry's Chemical Engineers' Handbook to standard Engineering Economics course topics.  The authors carefully selected relevant examples, videos, tables and figures which they felt would be valuable supplements to any standard Engineering Economics textbook. You can easily incorporate the content into your course by using our copy link functionality to paste a direct link into your school's LMS.

Authors
Don W. Green, Editor-in-Chief, Perry's Chemical Engineers' Handbook and Emeritus Distinguished Professor of Chemical and Petroleum Engineering, University of Kansas
Marylee Southard, Associate Professor, Chemical Engineering, University of Kansas

Course Topics

Capital Cost Estimation

Relevant Material Type Description Source
Capital Cost Estimation Text
Perry's Chemical Engineers' Handbook
Nomenclature and units Table   Perry's Chemical Engineers' Handbook
Glossary of terms Text   Perry's Chemical Engineers' Handbook
Estimating information guide Figure Figure 9-3, information to be determined Perry's Chemical Engineers' Handbook
Equipment cost data Text Estimating cost as function of unit capacity Perry's Chemical Engineers' Handbook
Cost-capacity plot Figure Figure 9-4, costs for various tanks Perry's Chemical Engineers' Handbook
Factors that affect profitability Text Comprehensive listing of factors to be considered Perry's Chemical Engineers' Handbook
Cost Indices Text Effect of inflation on costs: calculations and cost indices Perry's Chemical Engineers' Handbook
Selected cost indices Table Table 9-9, yearly cost indices for different methods Perry's Chemical Engineers' Handbook
Use of cost index Example Example 1 Perry's Chemical Engineers' Handbook
Equipment sizing and costing Example Example 3 Perry's Chemical Engineers' Handbook
Estimation of Fixed Capital Investment Text Different methods of estimating fixed capital investment Perry's Chemical Engineers' Handbook
Seventh tenths rule Example Example 4 Perry's Chemical Engineers' Handbook
Long, Hand and Wroth method Example Example 5 Perry's Chemical Engineers' Handbook
Definitive estimate methods Text Module or definitive methods: Guthrie and Garrett methods Perry's Chemical Engineers' Handbook
Guthrie method factors Table Table 9-13 Perry's Chemical Engineers' Handbook
Garrett module factors Table Table 9-14 Perry's Chemical Engineers' Handbook
Comments on Significant Cost Items Text Various factors to be considered in cost estimation Perry's Chemical Engineers' Handbook
Shell and Tube Heat Exchanger Costs Text   Perry's Chemical Engineers' Handbook
Costs of basic exchangers Figure Figure 11-41 Perry's Chemical Engineers' Handbook
Extras for pressure and alloy Table Table 11-14 Perry's Chemical Engineers' Handbook
Extra cost for tube gauge and alloy Figure Table 11-15 Perry's Chemical Engineers' Handbook
Economic Thickness of Insulation Text Economic thickness of pipe insulation Perry's Chemical Engineers' Handbook
Indoor insulation thickness Table Table 11-22, 80 degrees Fahrenheit/still, ambient air Perry's Chemical Engineers' Handbook
Outdoor insulation thickness Table Table 11-23, 60 degrees Fahrenheit/7.5 MPH wind Perry's Chemical Engineers' Handbook
Cost Comparison of Piping Systems Text Use of different materials Perry's Chemical Engineers' Handbook
Cost rankings and ratios Figure Figure 10-181, data for different pipe materials Perry's Chemical Engineers' Handbook
Crystallizer Costs Text   Perry's Chemical Engineers' Handbook
Crystallizer system costs Figure Figure 18-82 Perry's Chemical Engineers' Handbook

Manufacturing and Operating Expenses

Relevant Material Type Description Source
Manufacturing/Operating Expenses Table
Perry's Chemical Engineers' Handbook
Typical Operating Expense Sheet Example Figure 9-6, example listing of all operating expenses Perry's Chemical Engineers' Handbook
Fuel and Energy Costs Example Table 24-9, coal, gas and oil costs Perry's Chemical Engineers' Handbook

Factors Affecting Profitability

Relevant Material Type Description Source
Factors that Affect Profitability Text
Perry's Chemical Engineers' Handbook
Cash Flow Text Definition and quantitative expression of cash flow Perry's Chemical Engineers' Handbook
Cash flow model Figure Figure 9-9, diagram showing different cash-flow streams Perry's Chemical Engineers' Handbook
After-tax cash flow Example Example 7 (includes Figure 9-10) Perry's Chemical Engineers' Handbook
Cumulative cash flow Example Example 8 (includes Table 9-25) Perry's Chemical Engineers' Handbook
Typical cumulative cash-flow plot Figure Figure 9-11 Perry's Chemical Engineers' Handbook
Time Value of Money Text Equations for time-value-of-money calculations Perry's Chemical Engineers' Handbook
Compounding-discounting diagram Figure Figure 9-8, cash-flow timeline Perry's Chemical Engineers' Handbook
Compound interest factors Table Table 9-21, nomenclature on Table 9-20 Perry's Chemical Engineers' Handbook
Examples-use of interest factors Table Table 9-22, use of factors in Table 9-21 Perry's Chemical Engineers' Handbook
Continuous interest factors Table Table 9-23 Perry's Chemical Engineers' Handbook
Summary of interest factors Table Table 9-24 Perry's Chemical Engineers' Handbook
Effective interest rates Text Nominal and effective interest rates-relationship Perry's Chemical Engineers' Handbook
Depreciation Text Discussions and definitions Perry's Chemical Engineers' Handbook
Straight-line and MACRS methods Table Table 9-18 Perry's Chemical Engineers' Handbook
Depletion Text Discussions and definitions Perry's Chemical Engineers' Handbook

Measures of Profitability

Relevant Material Type Description Source
Profitability Text Measures of profitability Perry's Chemical Engineers' Handbook
Methods Based on Discounted Cash Flow Text Cash flow as function of time & interest rate Perry's Chemical Engineers' Handbook
Effect of interest rate on present worth Figure Figure 9-12 Perry's Chemical Engineers' Handbook
Profitability calculations Example Example 9, different int. rates (results in table 9-26) Perry's Chemical Engineers' Handbook
Break-even analysis Figure Figure 9-13, break-even plot Perry's Chemical Engineers' Handbook
Sensitivity Analysis Text   Perry's Chemical Engineers' Handbook
Sensitivity analysis plot Figure Figure 9-14, Strauss plot Perry's Chemical Engineers' Handbook
Uncertainty Analysis Text Monte Carlo method briefly described Perry's Chemical Engineers' Handbook
Schematic of Monte Carlo method Figure Figure 9-16, schematic diagram of Monte Carlo simulation Perry's Chemical Engineers' Handbook
Feasibility Analysis Text Purpose and outline of approach Perry's Chemical Engineers' Handbook
Comparison of Alternative Investments Example   Perry's Chemical Engineers' Handbook
Choice among alternatives Text Example 10, example with two alternative projects Perry's Chemical Engineers' Handbook
Replacement Analysis Text   Perry's Chemical Engineers' Handbook
Replacement analysis example Example Example 11, replacement of a compressor Perry's Chemical Engineers' Handbook
Economic Balance Text Optimization-number of process units Perry's Chemical Engineers' Handbook
Optimum number of evaporators Example Example 12 Perry's Chemical Engineers' Handbook

Capital Project Execution and Analysis

Relevant Material Type Description Source
Capital Project Execution and Analysis Text
Perry's Chemical Engineers' Handbook
Front-End Loading (FEL) Text Process to develop detailed scope of capital project Perry's Chemical Engineers' Handbook
FEL and the implementation of value-improving practices Figure Figure 9-20 Perry's Chemical Engineers' Handbook
FEL in the capital project life cycle Figure Figure 9-21 Perry's Chemical Engineers' Handbook
Project life-cycle terminology Figure Figure 9-22 Perry's Chemical Engineers' Handbook
Effect of team interaction Figure Figure 9-28, integrated vs nonintegrated teams Perry's Chemical Engineers' Handbook
Value Improving Practices (VIP) Text Formal practices to improve profitability Perry's Chemical Engineers' Handbook
Schedule of VIP implementation Figure Figure 9-34 Perry's Chemical Engineers' Handbook