Standardized cost estimation for new technology (SCENT) - methodology and tool

Abstract

This paper presents the development of a methodology and tool (called SCENT) to prepare preliminary economic estimates of the total production costs related to manufacturing in the process industries. The methodology uses the factorial approach – cost objects are estimated using factors and percentages on the basis of the purchased equipment cost. The chosen approach is based on an extensive literature survey on methodologies and suitable data. The approach has the advantage that it can be based on a limited amount of data (list of equipment required for the technology). Therefore it is especially suitable for new or emerging technologies. The theoretical accuracy of the prepared estimates is within ±30%.