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@ALL,
As a Cost Engineer, if there is a choice between two production methods, the favored method would be the one involving the lowest total cost. In spite of that, in order to effectively make the selection on this basis, it is fundamental that operational unit cost benchmarks be calculated and identified.
This short dissertation on the Unit Cost Approach to Estimating Operational Materials Budget is geared to introduce the unit cost method of obtaining the total material (or process) cost applied to a Steam Power Plant, and be made a template for similar production budget calculations of any similar installation.
I hope the readers will find this write up useful. Your comments are welcome.
Cheers,
Rufran C. Frago, P.Eng, PMP®, CCP, PMIRMP®
Clipping is a handy way to collect and organize the most important slides from a presentation. You can keep your great finds in clipboards organized around topics.
Cost saving questions such as: if we use our inhouse Turbine power for nine months instead of an external third party power, how much can we save? How about if we use it for a year? We can also focus on loss questions such as: We have a big leak on our LP steam line since yesterday. What is the dollar amount of what we'll be losing if this stays like this for a week before getting fixed? Questions similar to the aforementioned are common and as a Plant or Cost Engineer, we should be able to give a prompt response and a sound basis on where our answers came from.