GMR Institute of Technology, Quality Management

Internal Question Paper System (GMRIT : QMS)

U.G. Chemical Engineering Degree Bachelor of Technology

Academic Year 2018 – 2019 Test I / II/III Sem. 6th
Course Title
Course Code 16CH007 Chemical Engineering Plant Design &
Economics
Duration 90 Minutes Maximum Marks 40 (FOURTY)
Remember (%) 20 Understand (%) 46 Apply (%) 44 Analyze (%) --
SECTION I (Short Answer Questions)
(Answer all the Questions)
5 x 2 = 10 Marks
No. Questions (1 to 5) RBT Level COs
1 Differentiate between qualitative verses quantitative flow sheet Remember 1
2 Define cost index, how it is useful for chemical engineers Remember 2
3 Define patent Understand 3
4 What information is available in Marshall and Swift cost index Remember 2
5 What information is available in ISO 10628 Remember 3

SECTION II (Long Answer Questions)

(Answer all the Questions)
3 x 10 = 30 Marks

No. Questions (6 to 11) RBT Level COs Marks

6 a What is the importance of plant layout? Apply CO1 4M
List the various factors that must be considered for a
b Remember CO1 6M
proper plant layout.
OR
Discuss the important factors to be considered in selecting a 10M
7 Understand CO1
location for a chemical process plant
The total capital investment for a conventional chemical 10M
plant is Rs. 15,00,000 and the plant produces 30,00,000 kg
of product annually. The selling price of the product is
Rs.8.0/kg. Working capital amounts to 15 percent of the
total capital investment. The investment is from company
funds, and no interest is charged. Raw materials cost for the
8 Apply CO2
product is Re. 0.9/kg, labor Re. 0.8/kg, utilities Re. 0.5/kg,
and packaging Re. 0.08/kg. Distribution costs are 5 percent
of the total product cost. Estimate the following:
(a) Manufacturing cost per kg of product .
(b) Total product cost per year.
(c) Profit per kg of product before taxes.
OR

Form No. AC 27. 00.2018 | GMR Institute of Technology, Rajam, Andhra Pradesh. Note to the
Students: The question papers are set in accordance with OBE capturing various cognitive
AC 27 levels of RBT as well as expected COs. This direct assessment tool of Descriptive Examinations
is deployed to test the Cognitive Level of Students w.r.t. Lower Order Thinking Skills.
 GMR Institute of Technology, Quality Management
Internal Question Paper System (GMRIT : QMS)

The total capital investment for a chemical plant is Rs. Apply CO2 5M
One million and the working capital is Rs. 1, 00,000/-. If
the plant can produce an average of 8000 kgs of final
a
product per day during a 365 days year, what selling
price in Rs. Per kilogram of product would be necessary
9
to give a turnover ratio of 1.0?
The annual direct production costs for a plant are Rs. Apply CO2 5M
2,80,000 and the total annual sales are Rs. 5,60,000. [6]
b
i. If the product sells at Rs. 40 per unit, what is the direct
production cost per unit?
Explain various costs involved in total product cost for a Understand 10M
10 CO3
typical chemical process plant
OR
Write in detail about Unit-cost estimate. & Percentage of Understand CO3 10M
11 delivered-equipment cost methods for estimating capital
investment

Course Coordinator / Instructor Head of the

Department

Form No. AC 27. 00.2018 | GMR Institute of Technology, Rajam, Andhra Pradesh. Note to the
Students: The question papers are set in accordance with OBE capturing various cognitive
AC 27 levels of RBT as well as expected COs. This direct assessment tool of Descriptive Examinations
is deployed to test the Cognitive Level of Students w.r.t. Lower Order Thinking Skills.
 GMR Institute of Technology, Quality Management
Internal Question Paper System (GMRIT : QMS)

Key-Mid I

Section-I

1)
A qualitative flow diagram indicates the flow of materials, unit operations involved,
equipment necessary, and special information on operating temperatures and pressures.
A quantitative flow diagram shows the quantities of materials required for the process
operation.
2)
A cost index is merely an index value for a given point in time showing the cost at
that time relative to a certain base time.
If the cost at some time in the past is known, the equivalent cost at the present time
can be determined by multiplying the original cost by the ratio of the present index value to
the index value applicable when the original cost was obtained.

3)
A patent is essentially a contract between an inventor and the public. In consideration of full
disclosure of the invention to the public, the patentee is given exclusive rights to control the
use and practice of the invention. A patent gives the holder the power to prevent others from
using or practicing the invention for a period of 17 years from the date of granting.
4)
The Marshall and Swift (formerly known as Marshall and Stevens) equipment indexes are
normally divided into two categories. The all-industry equipment index is simply the
arithmetic average of individual indexes for 47 different types of industrial, commercial, and
housing equipment. The process-industry equipment index is a weighted average of eight of
these, with the weighting based on the total product value of the various press industries.
5)
ISO 10628 Diagrams for the chemical and petrochemical industry specifies the classification,
content, and representation of flow diagrams. It does not apply to electrical engineering
diagrams. ISO 10628 consists of the following parts:

Part 1: Specification of Diagrams (ISO 10628-1:2014)[1]

Part 2: Graphical Symbols (ISO 10628-2:2012)

Section II

6)

a) Plant layout:

• After the process flow diagrams are completed and before detailed piping, structural, and
electrical design can begin, the layout of process units in a plant and the equipment within these
process units must be planned. This layout can play an important part in determining construction
and manufacturing costs, and thus must be planned carefully with attention being given to future
problems that may arise. Since each plant differs in many ways and no two plant sites are exactly
alike, there is no one ideal plant layout. However, proper layout in each case will include

Form No. AC 27. 00.2018 | GMR Institute of Technology, Rajam, Andhra Pradesh. Note to the
Students: The question papers are set in accordance with OBE capturing various cognitive
AC 27 levels of RBT as well as expected COs. This direct assessment tool of Descriptive Examinations
is deployed to test the Cognitive Level of Students w.r.t. Lower Order Thinking Skills.
 GMR Institute of Technology, Quality Management
Internal Question Paper System (GMRIT : QMS)

arrangement of processing areas, storage areas, and handling areas in efficient coordination and
with regard to such factors as:

b)

 New site development or addition to previously developed site

 Type and quantity of products to be produced
 Type of process and product control
 Operational convenience and accessibility
 Economic distribution of utilities and services
 Type of buildings and building-code requirements
 Health and safety considerations
 Waste-disposal requirements
 Auxiliary equipment
 Space available and space required
 Roads and railroads
 Possible future expansion

7)

Form No. AC 27. 00.2018 | GMR Institute of Technology, Rajam, Andhra Pradesh. Note to the
Students: The question papers are set in accordance with OBE capturing various cognitive
AC 27 levels of RBT as well as expected COs. This direct assessment tool of Descriptive Examinations
is deployed to test the Cognitive Level of Students w.r.t. Lower Order Thinking Skills.
 GMR Institute of Technology, Quality Management
Internal Question Paper System (GMRIT : QMS)

8) The total capital investment = Rs. 15,00,000

Annual production =30,00,000 kg

selling price =Rs.8.0/kg.

Working capital = 15 % of the total capital investment. =0.15*15,00,000=Rs.2,25,000/-

Raw materials cost = Rs. 0.9/kg, labor = Rs. 0.8/kg, utilities cost =Rs. 0.5/kg, and

packaging cost =Rs. 0.08/kg.

Distribution costs = 5 % of the total product cost

(a)

Direct production costs= Raw materials cost+ labor cost+ utilities cost+ packaging cost

= 0.9+0.8+0.5+0.08

=Rs. 2.28/-

Fixed charges =Rs. 0/-

Plant overhead costs=

(b) Total product cost per year.

(c) Profit per kg of product before taxes.

9) a)

Form No. AC 27. 00.2018 | GMR Institute of Technology, Rajam, Andhra Pradesh. Note to the
Students: The question papers are set in accordance with OBE capturing various cognitive
AC 27 levels of RBT as well as expected COs. This direct assessment tool of Descriptive Examinations
is deployed to test the Cognitive Level of Students w.r.t. Lower Order Thinking Skills.
 GMR Institute of Technology, Quality Management
Internal Question Paper System (GMRIT : QMS)

𝐴𝑛𝑛𝑢𝑎𝑙 𝐺𝑟𝑜𝑠𝑠 𝑆𝑎𝑙𝑒𝑠

Turnover Ratio = 𝐹𝑖𝑥𝑒𝑑 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡

Given: Total capital investment =Rs. 10,00,000

and Working capital = Rs. 1,00,000

hence: Fixed capital=10.00,000-1,00,000 =Rs. 9,00,000/-

Annual production =8000 * 365=29,20,000 units.

Hence Annual Gross Sales =S.P * Annual production (Say S.P=Selling Price)

Turnover Ratio = 1.0

Hence S.P * 2920000=900000

therefore S.P= Rs. 0.31/- per kg of product

b)

10)

Form No. AC 27. 00.2018 | GMR Institute of Technology, Rajam, Andhra Pradesh. Note to the
Students: The question papers are set in accordance with OBE capturing various cognitive
AC 27 levels of RBT as well as expected COs. This direct assessment tool of Descriptive Examinations
is deployed to test the Cognitive Level of Students w.r.t. Lower Order Thinking Skills.
 GMR Institute of Technology, Quality Management
Internal Question Paper System (GMRIT : QMS)

11) UNIT-COST ESTIMATE.

The unit-cost method results in good estimating accuracies for fixed-capital

investment provided accurate records have been kept of previous cost experience. This
method, which is frequently used for preparing definitive and preliminary estimates, also
requires detailed estimates of purchased price obtained either from quotations or index-
corrected cost records and published data.

A unit cost is also applied to engineering employee-hours, number of drawings, and

specifications. A factor for construction expense, contractor’s fee, and contingency is
estimated from previously completed projects and is used to complete this type of estimate. A
cost equation summarizing this method can be given as:

Form No. AC 27. 00.2018 | GMR Institute of Technology, Rajam, Andhra Pradesh. Note to the
Students: The question papers are set in accordance with OBE capturing various cognitive
AC 27 levels of RBT as well as expected COs. This direct assessment tool of Descriptive Examinations
is deployed to test the Cognitive Level of Students w.r.t. Lower Order Thinking Skills.
 GMR Institute of Technology, Quality Management
Internal Question Paper System (GMRIT : QMS)

PERCENTAGE OF DELIVERED-EQUIPMENT COST.:

This method for estimating the fixed or total-capital investment requires
determination of the delivered-equipment cost. The other items included in the total direct
plant cost are then estimated as percentages of the delivered-equipment cost. The additional
components of the capital investment are based on average percentages of the total direct
plant cost, total direct and indirect plant costs, or total capital investment.
This is summarized in the following cost equation:

Form No. AC 27. 00.2018 | GMR Institute of Technology, Rajam, Andhra Pradesh. Note to the
Students: The question papers are set in accordance with OBE capturing various cognitive
AC 27 levels of RBT as well as expected COs. This direct assessment tool of Descriptive Examinations
is deployed to test the Cognitive Level of Students w.r.t. Lower Order Thinking Skills.