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Gujarat Technological University

This document contains a summary of an exam for a course on plant design and project engineering. The exam contains 5 questions related to topics like site selection, pilot plants, capital investment estimation methods, break-even analysis, heat exchanger design evaluation, piping layouts, investment costs, production costs, and network diagrams for research project timelines. The questions involve calculations, explanations of key concepts, and diagram drawing.

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Kashyap Tailor
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56 views

Gujarat Technological University

This document contains a summary of an exam for a course on plant design and project engineering. The exam contains 5 questions related to topics like site selection, pilot plants, capital investment estimation methods, break-even analysis, heat exchanger design evaluation, piping layouts, investment costs, production costs, and network diagrams for research project timelines. The questions involve calculations, explanations of key concepts, and diagram drawing.

Uploaded by

Kashyap Tailor
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Seat No.: ________ Enrolment No.

___________

GUJARAT TECHNOLOGICAL UNIVERSITY


BE - SEMESTER–VII (NEW) - EXAMINATION – SUMMER 2017
Subject Code: 2170503 Date: 04/05/2017
Subject Name: Plant Design & Project Engineering
Time: 02.30 PM to 05.00 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Q.1 (a) The geographical location of the final plant can have strong 07
influence on the success of the industrial venture. Explain how the
geographical and non-geographical factors affect the site selection
of a chemical plant. Mention the conventional locational analysis
methods.
(b) How does a pilot plant help in gathering information for full scale 07
operation? Is it advisable to dismantle the pilot plant once the full
scale operation gets started? Name the types of flow diagrams.

Q.2 (a) Enlist the methods for estimating capital investment. Discuss any 07
one of them with further elaboration. What are the selection criteria
of the methods?

(b) Define/explain the following terms in context with plant design & 07
economics, citing examples or mathematical correlation and/or
additional illustration wherever possible:
(i) Payout period (ii) Cost index (iii) Current and cash ratio (iv)
ROI (v) Battery limit (vi) Contingency (vii) Liquid and fixed asset

OR
(b) An existing warehouse is worth $500,000, and the average value of 07
the goods stored in it is $400,000. The annual insurance rate on the
warehouse is 1.1 percent, and the insurance rate on the stored goods
is 0.95 percent. If a proposed sprinkling system is installed in the
warehouse, both insurance rates would be reduced to three-quarters
of the original rate. The installed sprinkler system would cost
$20,000, and the additional annual cost of maintenance, inspection,
and taxes would be $300. The required write-off period for the
entire investment in the sprinkler system is 20 years. The capital
necessary to make the investment is available. The operation of the
warehouse is now giving an 8 percent return on the original
investment. Give reasons why you would or would not recommend
installing the sprinkler system.

Q.3 (a) Explain break-even point with a diagram. Discuss the importance of 07
break even analysis.
(b) What are the different methods of assessing the profitability of a 07
project?

The total investment for a chemical plant is $1 million, and the


1
working capital is $ 100,000. If the plant can produce an average of
8000 kg of final product per day during a 365 day year, what selling
price in dollars per kg of product would be necessary to give a
turnover ratio of 1.0?
OR
Q.3 (a) Discuss the method for evaluation of total product cost showing the 07
individual components.
(b) State Sixth tenth factor rule. A heat exchanger of area 10 m2 costed 03+04
Rs 50,000 in the year 2008, what is the estimated cost of a 15 m2
exchanger in 2010? Assume that the cost index in 1985 was 270 and
in 1987 it is 320.
Q.4 (a) Discuss the practical factors of alternative investment and
replacement decision? 07
(b) An existing plant has been operating in such a way that a large 07
amount of heat is being lost in the waste gases. It has been proposed
to save money by recovering the heat that is now being lost. Four
different heat exchangers have been designed to recover the heat,
and all prices, costs, and savings have been calculated for each of
the
Design No.1 No.2 No.3 No.4
Total initial installed cost ($) 10,000 16,000 20,000 26,000
Operating cost $/year 100 100 100 100
Fixed charges, % of initial cost per 20 20 20 20
year
Value of heat saved ($/year) 4100 6000 6900 8850
designs. The results of these calculations are presented in the table.
The company in charge of the plant demands at least a 10 percent
annual return based on the initial investment for any unnecessary
investment. Only one of the four designs can be accepted.
Neglecting effects due to income taxes and the time value of money,
which (if any) of the four designs should be recommended?
OR
Q.4 (a) Discuss with rough sketches different types of pipe fittings with 07
specific uses. What are the advantages and disadvantages of vertical
and horizontal layouts?

(b) A proposed chemical plant will require a fixed-capital investment of 07


$10 million. It is estimated that the working capital will amount to
25 percent of the total investment, and annual depreciation costs are
estimated to be 10 percent of the fixed-capital investment. If the
annual profit will be $3 million, determine the standard percent
return on the total investment and the minimum payout period.

Q.5 (a) State and explain the factors affecting investment and production 07
cost.
(b) An R & D Project has certain activities to execute. First three of 07
these activities include design (21), building prototype (5) and
evaluating equipment (7). The first activity does not have any
predecessor, but it is the predecessor of 2nd and 3rd activity. 4th
activity is testing of prototype (2), in which building of prototype is

2
the predecessor. Writing equipment report (5), method report (8),
and final report (2) are considered as 5th, 6th and 7th activities. 3rd
and 4th activities are the predecessor of 5th and 6th activity. 5th and
6th activities are the predecessors of 7th activity. Construct the
network diagram and indicate the critical path. The numbers in the
brackets indicate the time (in weeks) required for that particular
activity.
OR
Q.5 (a) The original investment for an asset was $10,000, and the asset was 07
assumed to have a service life of 12 years with $2000 salvage value
at the end of the service life. After the asset has been in use for 5
years, the remaining service life and final salvage value are
reestimated at 10 years and $1000, respectively. Under these
conditions, what is the depreciation cost during the sixth year of the
total life if straight-line depreciation is used?

(b) Show with a labeled graph how the asset value of a property varies 07
with time using the straight line, multiple straight lines, SYD and
declining balance method.

*************

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