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3/11/2014

Depreciation Depreciation

Decrease in the value of process


equipment or machine with time

Depreciation Depreciation

• Tax allowance

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Depreciation Depreciation

• Tax allowance • Tax allowance


• Cost of operation • Cost of operation
• Money source for plant replacement

Depreciation Depreciation

• Tax allowance
• Cost of operation
• Money source for plant replacement
• Decreasing value of asset

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Depreciation Depreciation

• Physical Depreciation • Physical Depreciation


• Functional Depreciation

Depreciation Depreciation

• Physical Depreciation Service life : economic life or useful


life
• Functional Depreciation
• Accidental Depreciation

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Depreciation Depreciation

Salvage value / Scrap Value Salvage value / Scrap Value


Market Value

Depreciation Depreciation

Salvage value / Scrap Value Salvage value / Scrap Value


Market Value Market Value
Present Value / Current Value: Present Value / Current Value:
Book Value :

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Depreciation Depreciation
Salvage value / Scrap Value
• Physical Plant Life
Market Value
Present Value / Current Value:
Book Value :
Replacement Value :

Depreciation Depreciation

• Physical Plant Life • Physical Plant Life


• Technological Plant Life • Technological Plant Life
• Product Market Plant life

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Methods to calculate Depreciation Methods to calculate Depreciation


1. Straight line 1. Straight line
Let P : Initial cost of equipment
S : Salvage value of equipment
n : Estimated service life of equipment
q p
Dt : Depreciation in any one year
Bt : Book value of equipment after time t years

Methods to calculate Depreciation Methods to calculate Depreciation


1. Straight line 1. Straight line
Let P : Initial cost of equipment
Value of equipment decrease at
S : Salvage value of equipment
constant rate
n : Estimated service life of equipment
q p
Dt : Depreciation in any one year
Bt : Book value of equipment after time t years

Dt =
(P − S )
n

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Methods to calculate Depreciation Q : Consider process equipment of initial cost 80000 Rs,
estimated salvage value of the equipment is 8000 Rs at
1. Straight line the end of total service life of 10 years, calculate the
book value of equipment at end of every year using
Let P : Initial cost of equipment
straight line method for depreciation
S : Salvage value of equipment
n : Estimated service life of equipment
q p
Dt : Depreciation in any one year
Bt : Book value of equipment after time t years

Dt =
(P − S ) ⎛P−S ⎞
Bt = P − tDt = P − t ⎜ ⎟
n ⎝ n ⎠

Q : Consider process equipment of initial cost 80000 Rs, Q : Consider process equipment of initial cost 80000 Rs,
estimated salvage value of the equipment is 8000 Rs at estimated salvage value of the equipment is 8000 Rs at
the end of total service life of 10 years, calculate the the end of total service life of 10 years, calculate the
book value of equipment at end of every year using book value of equipment at end of every year using
straight line method for depreciation straight line method for depreciation
No of years Depreciation Value (Rs) Book Value (Rs)
P = 80000 Rs 0 0 80000
S = 8000 Rs 1 7200 72800
2 7200 65600
n = 10 years 3 7200 58400
4 7200 51200
Dt = 7200 Rs 5 7200 44000
6 7200 36800

Dt =
(P − S ) ⎛P−S ⎞
Bt = P − tDt = P − t ⎜ ⎟
7
8
7200
7200
29600
22400
n ⎝ n ⎠ 9
10
7200
7200
15200
8000

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Methods to calculate Depreciation Methods to calculate Depreciation


1. Straight line 1. Straight line
2. Declining balance 2. Declining balance
Depreciation is calculated by using
fixed percentage on book value

Methods to calculate Depreciation Methods to calculate Depreciation


1. Straight line 1. Straight line
2. Declining balance 2. Declining balance
Depreciation is calculated by using Depreciation is calculated by using
fixed percentage on book value fixed percentage on book value
Higher depreciation at start Higher depreciation at start
Does not allow zero value at end

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Methods to calculate Depreciation Methods to calculate Depreciation


2. Declining balance 2. Declining balance
Let P : Initial cost of equipment D1 = RP
R : Fixed percentage charge as depreciation
S : Salvage value of equipment
n : Estimated service life of equipment
Dt : Depreciation in any one year
Bt : Book value of equipment after time t years

Methods to calculate Depreciation Methods to calculate Depreciation


2. Declining balance 2. Declining balance
D1 = RP D1 = RP
B1 = P − D1 = P − RP = P(1 − R ) B1 = P − D1 = P − RP = P(1 − R )
D2 = RB1 = RP(1 − R )

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Methods to calculate Depreciation Methods to calculate Depreciation


2. Declining balance 2. Declining balance
D1 = RP D1 = RP
B1 = P − D1 = P − RP = P(1 − R ) B1 = P − D1 = P − RP = P(1 − R )
D2 = RB1 = RP(1 − R ) D2 = RB1 = RP(1 − R )
B2 = B1 − D2 = P(1 − R ) − RP(1 − R ) = P(1 − R ) B2 = B1 − D2 = P(1 − R ) − RP(1 − R ) = P(1 − R )
2 2

D3 = RB2 = RP(1 − R )
2

Methods to calculate Depreciation Methods to calculate Depreciation


2. Declining balance 2. Declining balance
D1 = RP D1 = RP
B1 = P − D1 = P − RP = P(1 − R ) B1 = P − D1 = P − RP = P(1 − R )
D2 = RB1 = RP(1 − R ) D2 = RB1 = RP(1 − R )
B2 = B1 − D2 = P(1 − R ) − RP(1 − R ) = P(1 − R ) B2 = B1 − D2 = P(1 − R ) − RP(1 − R ) = P(1 − R )
2 2

D3 = RB2 = RP(1 − R ) D3 = RB2 = RP(1 − R )


2 2

B3 = B2 − D3 = P(1 − R ) − RP(1 − R ) = P(1 − R ) B3 = B2 − D3 = P(1 − R ) − RP(1 − R ) = P(1 − R )


2 2 3 2 2 3

Dt = RP(1 − R )
t −1

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Methods to calculate Depreciation Methods to calculate Depreciation


2. Declining balance 2. Declining balance
D1 = RP D1 = RP
B1 = P − D1 = P − RP = P(1 − R ) B1 = P − D1 = P − RP = P(1 − R )
D2 = RB1 = RP(1 − R ) D2 = RB1 = RP(1 − R )
B2 = B1 − D2 = P(1 − R ) − RP(1 − R ) = P(1 − R ) B2 = B1 − D2 = P(1 − R ) − RP(1 − R ) = P(1 − R )
2 2

D3 = RB2 = RP(1 − R ) D3 = RB2 = RP(1 − R )


2 2

B3 = B2 − D3 = P(1 − R ) − RP(1 − R ) = P(1 − R ) B3 = B2 − D3 = P(1 − R ) − RP(1 − R ) = P(1 − R )


2 2 3 2 2 3

Dt = RP(1 − R ) Dt = RP(1 − R )
t −1 t −1
⎡ ⎛ S ⎞1 n ⎤
Bt = P(1 − R ) Bt = P(1 − R ) R = ⎢1 − ⎜ ⎟ ⎥
t t
⎣⎢ ⎝ P ⎠ ⎦⎥

Q : Consider process equipment of initial cost 80000 Rs, Q : Consider process equipment of initial cost 80000 Rs,
estimated salvage value of the equipment is 8000 Rs at estimated salvage value of the equipment is 8000 Rs at
the end of total service life of 10 years, calculate the the end of total service life of 10 years, calculate the
book value of equipment at end of every year using book value of equipment at end of every year using
Declining balance method for depreciation Declining balance method for depreciation

P = 80000 Rs
S = 8000 Rs
n = 10 years

⎡ ⎛ S ⎞1 n ⎤
R = ⎢1 − ⎜ ⎟ ⎥
⎢⎣ ⎝ P ⎠ ⎥⎦
Dt = RP(1 − R )
t −1
Bt = P(1 − R )
t

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Q : Consider process equipment of initial cost 80000 Rs, Q : Consider process equipment of initial cost 80000 Rs,
estimated salvage value of the equipment is 8000 Rs at estimated salvage value of the equipment is 8000 Rs at
the end of total service life of 10 years, calculate the the end of total service life of 10 years, calculate the
book value of equipment at end of every year using book value of equipment at end of every year using
Declining balance method for depreciation Declining balance method for depreciation
No of years Depreciation Value (Rs) Book Value (Rs)
0 0.00 80000.00
P = 80000 Rs 1 164 3 4
16453.74 63 46 26
63546.26
2 13069.67 50476.59
S = 8000 Rs 3 10381.61 40094.98
n = 10 years 4 8246.41 31848.57
5 6550.35 25298.22
R = 0.2057 6 5203.13 20095.09
⎡ ⎛ S ⎞1 n ⎤
R = ⎢1 − ⎜ ⎟ ⎥
7 4132.99 15962.10

⎣⎢ ⎝ P ⎠ ⎦⎥
8 3282.95 12679.15

Dt = RP(1 − R )
t −1
Bt = P(1 − R )
t 9 2607.74 10071.40
10 2071.40 8000.00

Methods to calculate Depreciation Methods to calculate Depreciation


1. Straight line 1. Straight line
2. Declining balance 2. Declining balance
3. Double Declining balance 3. Double Declining balance
Rate of depreciation is exactly double
the rate in straight line method

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Methods to calculate Depreciation


Methods to calculate Depreciation
3. Double Declining balance
1. Straight line
2. Declining balance
3. Double Declining balance
Rate of depreciation is exactly double
the rate in straight line method
Other characteristic is similar to
declining balance method

Methods to calculate Depreciation Methods to calculate Depreciation


3. Double Declining balance 3. Double Declining balance
Dt =
(P − S ) Dt =
(P − S )
n n 1
Rate R =
n

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Methods to calculate Depreciation Methods to calculate Depreciation


3. Double Declining balance 3. Double Declining balance
Dt =
(P − S ) Dt =
(P − S )
⎡ ⎛ S ⎞1 n ⎤ ⎡ ⎛ S ⎞1 n ⎤
n R = ⎢1 − ⎜ ⎟ ⎥ n R = ⎢1 − ⎜ ⎟ ⎥
1 1
Rate R = ⎣⎢ ⎝ P ⎠ ⎦⎥ Rate R = ⎣⎢ ⎝ P ⎠ ⎦⎥
n n
P = 80000 Rs
S = 8000 Rs
n = 10 years

Methods to calculate Depreciation Methods to calculate Depreciation


3. Double Declining balance 3. Double Declining balance
Dt =
(P − S ) Dt =
(P − S )
⎡ ⎛ S ⎞1 n ⎤ ⎡ ⎛ S ⎞1 n ⎤
n R = ⎢1 − ⎜ ⎟ ⎥ n R = ⎢1 − ⎜ ⎟ ⎥
1 1
Rate R = ⎣⎢ ⎝ P ⎠ ⎦⎥ Rate R = ⎣⎢ ⎝ P ⎠ ⎦⎥
n n
P = 80000 Rs P = 80000 Rs
S = 8000 Rs S = 8000 Rs
n = 10 years n = 10 years
R = 0.1 R = 0.2057 R = 0.1 R = 0.2057
R~ 2*(1/n)

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Methods to calculate Depreciation Methods to calculate Depreciation


3. Double Declining balance 3. Double Declining balance
Dt =
(P − S ) R = 2*(1/n)
⎡ ⎛ S ⎞1 n ⎤
n R = ⎢1 − ⎜ ⎟ ⎥
1
⎣⎢ ⎝ P ⎠ ⎦⎥ Dt = RP(1 − R ) Bt = P(1 − R )
t −1
Rate R = t
n
P = 80000 Rs
S = 8000 Rs
n = 10 years
R = 0.1 R = 0.2057
R~ 2*(1/n)

R = 2*(1/n)

Q : Consider process equipment of initial cost 80000 Rs, Q : Consider process equipment of initial cost 80000 Rs,
with total service life of 10 years, calculate the book with total service life of 10 years, calculate the book
value of equipment at end of every year using Double value of equipment at end of every year using Double
Declining balance method for depreciation Declining balance method for depreciation

P = 80000 Rs
n = 10 years

⎛1⎞
R = 2*⎜ ⎟
⎝n⎠

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Q : Consider process equipment of initial cost 80000 Rs, Q : Consider process equipment of initial cost 80000 Rs,
with total service life of 10 years, calculate the book with total service life of 10 years, calculate the book
value of equipment at end of every year using Double value of equipment at end of every year using Double
Declining balance method for depreciation Declining balance method for depreciation

No of years Depreciation Value (Rs) Book Value (Rs)


0 0.00 80000.00
P = 80000 Rs 1 16000.00 64000.00
n = 10 years 2 12800 00
12800.00 51200 00
51200.00
3 10240.00 40960.00
R = 0.2 4 8192.00 32768.00
5 6553.60 26214.40
6 5242.88 20971.52
⎛1⎞ 7 4194.30 16777.22
R = 2*⎜ ⎟ 8 3355.44 13421.77
⎝n⎠ 9 2684.35 10737.42

Dt = RP(1 − R ) Bt = P(1 − R )
t −1 t 10 2147.48 8589.93

Methods to calculate Depreciation Methods to calculate Depreciation


1. Straight line 4. Sum of years digits
2. Declining balance Depreciation is proportional to years
3. Double Declining balance of life left for the equipment

4. Sum of years digits

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Methods to calculate Depreciation Methods to calculate Depreciation


4. Sum of years digits 4. Sum of
n
years digits
Let P : Initial cost of equipment ∑n
i =1
n
S : Salvage value of equipment
n : Estimated service life of equipment
∑ n = 1 + 2 + 3..... + (n − 1) + n
i=1

Dt : Depreciation in any one year


Bt : Book value of equipment after time t years n

∑D
i =1
i

Methods to calculate Depreciation Methods to calculate Depreciation


4. Sum of
n
years digits 4. Sum of
n
years digits
∑n
i =1
∑n
i =1
n n

∑ n = 1 + 2 + 3..... + (n − 1) + n
i=1
∑ n = 1 + 2 + 3..... + (n − 1) + n
i=1
n
n(n + 1) n
n(n + 1)
∑ n = 1 + 2 + 3..... + (n − 1) + n = ∑ n = 1 + 2 + 3..... + (n − 1) + n =
i =1 2 i =1 2
n

∑D i Dt =
(n − t + 1) (P − S )
i =1 ⎡ n(n + 1) ⎤
⎢⎣ 2 ⎥⎦
n

∑ D = (P − S )
i =1
i

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Methods to calculate Depreciation Q : Consider process equipment of initial cost 80000 Rs,
estimated salvage value of the equipment is 8000 Rs at
4. Sum of
n
years digits the end of total service life of 10 years, calculate the
book value of equipment at end of every year using sum
∑n
i =1
of the year method for depreciation
n

∑ n = 1 + 2 + 3..... + (n − 1) + n
i=1
n
n(n + 1)
∑ n = 1 + 2 + 3..... + (n − 1) + n =
i =1 2
(n − t + 1) (P − S ) ⎛ n − t ⎞⎛ n − t + 1 ⎞
Dt = Bt = (P − S )⎜ ⎟⎜ ⎟+S
⎡ n(n + 1) ⎤ ⎝ n ⎠⎝ n + 1 ⎠
⎢⎣ 2 ⎥⎦

Q : Consider process equipment of initial cost 80000 Rs, Q : Consider process equipment of initial cost 80000 Rs,
estimated salvage value of the equipment is 8000 Rs at estimated salvage value of the equipment is 8000 Rs at
the end of total service life of 10 years, calculate the the end of total service life of 10 years, calculate the
book value of equipment at end of every year using sum book value of equipment at end of every year using sum
of the year method for depreciation of the year method for depreciation
No of years Depreciation Value (Rs) Book Value (Rs)
P = 80000 Rs 0 0.00 80000.00
S = 8000 Rs 1 13090 91
13090.91 66909 09
66909.09
2 11781.82 55127.27
n = 10 years 3 10472.73 44654.55
4 9163.64 35490.91
P-S = 72000 Rs 5 7854.55 27636.36
6 6545.45 21090.91
7 5236.36 15854.55
8 3927.27 11927.27
9 2618.18 9309.09
10 1309.09 8000.00

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Methods to calculate Depreciation Methods to calculate Depreciation


1. Straight line 5. Shrinking fund
2. Declining balance Equal installment is deposited into
3. Double Declining balance shrinking fund as a depreciation
charges during
d ring service
ser ice life of
4. Sum of years digits equipment, which is compounded
5. Shrinking fund annually at given rate. The
accumulated amount is total
depreciation for the year

Methods to calculate Depreciation Q : Consider process equipment of initial cost 80000 Rs,
estimated salvage value of the equipment is 8000 Rs at
5. Shrinking fund the end of total service life of 10 years, calculate the
book value of equipment at end of every year using
shrinking fund method for depreciation
⎡ (1 + i )n − 1 ⎤
(P − S ) = A⎢ ⎥
⎣ i ⎦

⎡ ⎤
A = (P − S )⎢
i

⎣ (1 + i ) − 1 ⎦
n

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Q : Consider process equipment of initial cost 80000 Rs, Q : Consider process equipment of initial cost 80000 Rs,
estimated salvage value of the equipment is 8000 Rs at estimated salvage value of the equipment is 8000 Rs at
the end of total service life of 10 years, calculate the the end of total service life of 10 years, calculate the
book value of equipment at end of every year using book value of equipment at end of every year using
shrinking fund method for depreciation with interest shrinking fund method for depreciation with interest
rate 10 % compounded yearly rate 10 % No of years Depreciation Value (Rs) Book Value (Rs)
0 0.00 80000.00
P = 80000 Rs 1 4517.67 75482.33
2 4969.44 70512.90
S = 8000 Rs
3 5466.38 65046.52
n = 10 years 4 6013.02 59033.50
5 6614.32 52419.18
P-S = 72000 Rs 6 7275.75 45143.43
7 8003.33 37140.11
8 8803.66 28336.45
9 9684.02 18652.43
10 10652.43 8000.00

18000 90000

16000 80000

14000 70000

12000 60000

M1D M1B
10000 50000
M2D M2B
M3D M3B
8000 40000
M4D M4B
M5D M5B
6000 30000

4000 20000

2000 10000

0 0
0 2 4 6 8 10 12 0 2 4 6 8 10 12

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Depreciation Depreciation
No of years Depreciation Value (Rs) Book Value (Rs) Consider process equipment of initial cost 80000 Rs,
0 0.00 80000.00 estimated salvage value of the equipment is 8000 Rs
1 4517.67 75482.33 at the end of total service life of 10 years, calculate the
2 4969.44 70512.90
3 5466.38 65046.52
book value of equipment at end of every year using
4 6013.02 59033.50
5 6614.32 52419.18 Calculate the present value of tax saving for all
6 7275.75 45143.43 methods as solved with rate of tax interest 35%
7 8003.33 37140.11
8 8803.66 28336.45
9 9684.02 18652.43
10 10652.43 8000.00

1) The present value of two process plant at the beginning of their


operation is Rs 280000000. The cash flow of two plants are as
shown below. Compare the two plants is the money worth is 8%
and 18 % per year which plant should be selected for operation

Year Plant 1 Plant 2


1 67500000 115000000
2 117800000 122500000
3 125000000 127500000
4 149000000 122500000
5 142500000 126500000

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Measure of profitability Measure of profitability

1. Return of the investment


2. Pay back period
3. Net return

Include time value of money


• Net present worth

ROI : Rate of Investment (mar)


Np :Annual net profit
Return of the investment T : Total capital investment

Rate of Return (1)

ROI : Rate of Investment ((mar)


Np :Annual net profit
T : Total capital investment

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ROI : Rate of Investment (mar) ROI : Rate of Investment (mar)


Np :Annual net profit Np :Annual net profit
T : Total capital investment T : Total capital investment

(1) (1)

(2) (2)

(3)

ROI : Rate of Investment (mar) ROI : Rate of Investment (mar)


Np :Annual net profit Np :Annual net profit
T : Total capital investment T : Total capital investment

(1) (1)

(2) (2)

(3) (3)

ROI max = mar ROI max = mar


mar is maximum acceptable return

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V : Manufacturing fixed capital investment


Ax : Nonmanufacturing fixed capital
Pay back period investment
Aj : Annual cash flow
Np :Annual net profit (4)

V : Manufacturing fixed capital investment


Ax : Nonmanufacturing fixed capital investment
Aj : Annual cash flow

V : Manufacturing fixed capital investment V : Manufacturing fixed capital investment


Ax : Nonmanufacturing fixed capital Ax : Nonmanufacturing fixed capital
investment investment
Aj : Annual cash flow Aj : Annual cash flow
Np :Annual net profit (4) Np :Annual net profit (4)

(5) (5)

(A )
j avg = N p ,avg + d j ,avg (6)

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V : Manufacturing fixed capital investment V : Manufacturing fixed capital investment


Ax : Nonmanufacturing fixed capital Ax : Nonmanufacturing fixed capital
investment investment
Aj : Annual cash flow Aj : Annual cash flow
Np :Annual net profit (4) Np :Annual net profit (4)

(5) (5)

(A )
j avg = N p ,avg + d j ,avg = (6) (A )
j avg = N p ,avg + d j ,avg = (6)

(7)

Net return Net present worth


dj : Depreciation per year Sj : Total sales per year
recj : Amount recovered Coj : Cost of operation per year

NPW

(7)
(8)

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Consider the chemical plant with life time 10 years,


manufacturing fixed capital investment 1500000 Rs,
non manufacturing fixed capital investment 150000 Rs,
land cost 225000 Rs same land cost can be recovered at
the end of the service life. The scrap value of the plant is
around 165000 Rs, annual income is 850000 Rs with
annual operating cost 212500 Rs. If income tax rate is
35% and calculate the pay back period total cash flow of
the plant considering compound interest rate of 10 %

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Shell and tube Heat exchanger

Shell and tube Heat exchanger


Codes available
Process design involves
•Type of heat exchanger •IS-4503
•Shell, Diameter and passes •BS-3274
Tube, size, number and passes
•Tube, •Standers of tubular exchanger
g
•Terminal temperature manufactures association (TMEA)
•Modes of flow
•Location of fluid stream

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Fluid flow arrangement Classification


•Co-current •Fixed tube sheet
•Counter current •Outside packed floating head
•Single cross flow •Internal floating head
•Multiple cross flow •U tube type
•Reboiler

Material of Construction Design pressure

5-10% of maximum operating pressure

Design temperature

10 °C higher than maximum operating


temperature

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Shell Calculating tube sheet and shell diameter

Diameter
tubes
tube sheet
Length to diameter
4:1 to 8:1 for liquids
even less then 4:1 for gases

Calculating tube sheet and shell diameter Calculating tube sheet and shell diameter

a1 = ST2 a1 = ST2
ST = pitch length an = nST2

n = number
b off ttubes
b

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Calculating tube sheet and shell diameter Calculating tube sheet and shell diameter

a1 = ST2 a1 = ST2

an = nST2 an = nST2
nST2
an =
β

Factor β is used to provide for the pass partitions, Factor β is used to provide for the pass partitions,
tie rods, and for other area compensation tie rods, and for other area compensation
β = 0.8 – 1 Single tube side pass β = 0.8 – 1 Single tube side pass
β = 0.7 – 0.85 Double tube side pass β = 0.7 – 0.85 Double tube side pass
β = 0.6 – 0.8 multiple tube side pass β = 0.6 – 0.8 multiple tube side pass

Calculating tube sheet and shell diameter Calculating tube sheet and shell diameter
3 2
a1 = ST
2
ST = pitch length

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Calculating tube sheet and shell diameter Calculating tube sheet and shell diameter
3 2 3 2
a1 = ST a1 = ST
2 2
3 2 3 2
an = n ST an = n ST
2 2
n = number
b off ttubes
b

Factor β is used to provide for the pass partitions,


tie rods, and for other area compensation
β = 0.8 – 1 Single tube side pass
β = 0.7 – 0.85 Double tube side pass
β = 0.6 – 0.8 Single tube side pass

Calculating tube sheet and shell diameter Calculating tube sheet and shell diameter
3 2 3 2
a1 = ST a1 = ST
2 2
3 2 3 2
an = n ST an = n ST
2 2
n 3ST2 n 3ST2 n0.866 ST2
an = an = =
2β 2β β
Factor β is used to provide for the pass partitions, Factor β is used to provide for the pass partitions,
tie rods, and for other area compensation tie rods, and for other area compensation
β = 0.8 – 1 Single tube side pass β = 0.8 – 1 Single tube side pass
β = 0.7 – 0.85 Double tube side pass β = 0.7 – 0.85 Double tube side pass
β = 0.6 – 0.8 Single tube side pass β = 0.6 – 0.8 Single tube side pass

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Calculating tube sheet and shell diameter Shell


∏ 2
D = an Calculating thickness
4
All design equation of pressure vessels
4an
D=

D : tube sheet and shell diameter

Shell Baffles and tie rods


Minimum Shell Thickness

Baffle cuts or flow space : 15 – 45 %


Optimum Baffle cuts : 20 - 25 %
Baffle spacing : 0.2 to 1.0 shell diameters,
Optimum spacing : 0.3 to 0.5 shell diameter.
Baffle thickness : in order of magnitude of shell thickness
Minimum no of tie rods : 4 Or any higher even numbers
Diameter of tie rod in order of magnitude of shell thickness

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Shell Shell

•Head •Head
•Nozzle •Nozzle
•Flange •Flange
G k t
•Gasket G k t
•Gasket

Similar to pressure vessels

Tubes Tubes

Without fins Diameter : 6 mm – 40 mm


With fins : 1.5 mm, 7-8 per cm Thickness : 1 mm – 3 mm
Duplex tube Length : 0.5, 1,1.5, 2, 2.5, 3, 4, 5, 6 m , so on

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Tube side Tube side

Diameter of tube Diameter of tube

Thickness of tube

Tube sheet thickness


Tube sheet

Rotating roller expanding tool


Shouldered, blazed

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Tube sheet thickness Tube sheet thickness

Tube sheet thickness Tube sheet thickness

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Tube sheet thickness


Shell side and tube side passes

Shell side
•Single pass
•Single split
D bl
•Double
•Double split

Tube side
Single, two, four, six, eight, ten, twelve

Channel and Channel covers Supports

Designing of the heads Horizontal vessel

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Thermal expansion Thermal expansion

Thermal expansion Thermal expansion

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Thermal expansion Thermal expansion

Thermal expansion Thermal expansion

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Q. Consider U-tube, 2 Pass Shell and Tube heat exchanger with


following give data discuss its total design
Design following parameter for given
shell and tube heat exchanger
•Shell diameter
•Shell thickness
•Nozzles thickness
•Head or channel thickness
•Flange, nuts gasket sizing
•Tube thickness
•Tube sheet thickness

Calculating tube sheet and shell diameter Calculating tube sheet and shell diameter

a1 = ST2

an = nST2
nST2
an =
β

Factor β is used to provide for the pass partitions,


tie rods, and for other area compensation
β = 0.8 – 1 Single tube side pass
β = 0.7 – 0.85 Double tube side pass
β = 0.6 – 0.8 multiple tube side pass

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Calculating tube sheet and shell diameter Calculating tube sheet and shell diameter
2
∏ 2
nS ∏ 2
nST2
D = an an = T
D = an an =
4 β 4 β
4an β = 0.7 4an β = 0.7
D= D=
∏ ∏
ST 25 mm
n 54
passes 2
β 0.7

D : tube sheet and shell diameter D : tube sheet and shell diameter

Calculating tube sheet and shell diameter Shell


2
∏ 2
nS
D = an an = T
β Calculating thickness
4
All design equation of pressure vessels
4an β = 0.7
D=

D = 350.58 mm
D = 400 mm

D : tube sheet and shell diameter

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Shell Shell

Calculating thickness Calculating thickness


All design equation of pressure vessels All design equation of pressure vessels

p 0.5 N/mm2
Dsi 400 mm
f 95 N/mm2 t = 4.24 mm
j 0.85
c 3 mm

Shell Shell
Minimum Shell Thickness
Calculating thickness
All design equation of pressure vessels

t = 6.3+3 mm
t = 9.3 mm = 10 mm

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Nozzle (inlet and outlet) Nozzle (inlet and outlet)

Diameter of nozzle Diameter of nozzle

Thickness of nozzle

Nozzle (inlet and outlet) Nozzle (inlet and outlet)

Diameter of nozzle Diameter of nozzle

Thickness of nozzle Thickness of nozzle

p 0.5 N/mm2
Dni 75 mm

F 95 N/mm2
j 0.85 t = 3.23 mm
c 3 mm
t = 4 mm

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Torispherical Head
Nozzle (inlet and outlet)

Diameter of nozzle

Thickness of nozzle

Nozzle reinforcement

Torispherical Head Torispherical Head

p 0.5 N/mm2
Rc 400 mm
f 95 N/mm2
j 0.85
c 3 mm

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Torispherical Head Torispherical Head

R1= 24 mm R1= 50 mm
R1= 50 mm W= 1.45

Torispherical Head Torispherical Head

R1= 50 mm R1= 50 mm
W= 1.45 W= 1.45
th = 4.8 mm = 5 mm th = 4.8 mm = 5 mm
th = 10 mm = ts

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Baffles and tie rods Baffles and tie rods

Baffle cuts or flow space : 15 – 45 % Baffle cuts or flow space : 25 %


Optimum Baffle cuts : 20 - 25 % Baffle spacing : 0.2 shell diameters,
Baffle spacing : 0.2 to 1.0 shell diameters, Baffle thickness : in order of magnitude of shell thickness
Optimum spacing : 0.3 to 0.5 shell diameter. Minimum no of tie rods : 4 Or any higher even numbers
Baffle thickness : in order of magnitude of shell thickness Diameter of tie rod in order of magnitude of shell thickness
Minimum no of tie rods : 4 Or any higher even numbers
Diameter of tie rod in order of magnitude of shell thickness

Baffles and tie rods Baffles and tie rods


Baffle cuts or flow space = 25 % Baffle cuts or flow space = 25 %
Baffle length = 0.75 X shell diameter (400 mm) Baffle length = 0.75 X shell diameter (400 mm)
Baffle length = 300 mm

Baffle spacing = 0.2 shell diameters (400 mm) Baffle spacing = 0.2 shell diameters (400 mm)
Baffle spacing = 80 mm

Baffle thickness : in order of magnitude of shell thickness Baffle thickness : in order of magnitude of shell thickness
Baffle thickness = 10 mm

Minimum no of tie rods : 4 Or any higher even numbers Minimum no of tie rods : 4 Or any higher even numbers
No of tie rods = 6

Diameter of tie rod in order of magnitude of shell thickness Diameter of tie rod in order of magnitude of shell thickness
Diameter of tie rod = 10 mm

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Tube side Tube side

Diameter of tube Diameter of tube

Thickness of tube

Tube side Tube side

Diameter of tube Diameter of tube

Thickness of tube Thickness of tube

p 21.5 N/mm2 p 21.5 N/mm2


Do 18 mm Do 18 mm

f 100.6 N/mm2 tf = 1.73 mm f 100.6 N/mm2


j 1 j 1
tf = 2 mm

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Tube sheet thickness Tube sheet thickness

Tube sheet thickness Tube sheet thickness

F 1.25

p 21.5 N/mm2
f 100.6 N/mm2

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Tube sheet thickness Tube sheet thickness

F 1.25 F 1.25
G 428 mm G 428 mm
p 21.5 N/mm2 p 21.5 N/mm2
f 100.6 N/mm2 f 100.6 N/mm2

t = 123.66 mm = 125 mm

Flange, nuts and gasket Flange, nuts and gasket

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Flange, nuts and gasket Flange, nuts and gasket

Flange, nuts and gasket Flange, nuts and gasket

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Length of heat exchanger


Flange, nuts and gasket

•Surface area required for given HT


•Residence time required for given HT

G = 428 mm, tf = 41.3 mm = 45 mm

Q. Consider simple single pass shell and tube heat exchanger


Assignment with following data
Shell side :
MOC – carbon steel (c = 3mm)
Design and solve two numerical discussing Design pressure – 2 N/mm2
detail design of tube side:
MOC – Stainless steel
Gasket Design pressure – 35 N/mm2
Flange N Of tube
No. t b : 146
Outside diameter – 25 mm
Nuts and bolts Pitch – 35 mm
All types of head for given shell and tube Permissible stress for carbon steel – 95 N/mm2
Permissible stress for stainless steel – 100.6 N/mm2
heat exchanger Discus the detail design of Shell, tubes, tube sheet, baffles and
Support for shell and tube heat exchanger tie rods for both square and triangular pitch.

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3/11/2014

Q. Consider simple single pass shell and tube heat exchanger


with following data
Shell side :
MOC – carbon steel (c = 3mm)
Design pressure – 2 N/mm2
tube side:
MOC – Stainless steel
Design pressure – 35 N/mm2
N Of tube
No. t b : 146
Outside diameter – 25 mm
Pitch – 35 mm
Permissible stress for carbon steel – 95 N/mm2
Permissible stress for stainless steel – 100.6 N/mm2
Discus the detail design of Shell, tubes, tube sheet, baffles and
tie rods for both square and triangular pitch.
For calculation take rough guess for mean gasket diameter =
1.07 outside shell diameter

Square Pitch Triangular Pitch


Shell Shell
Diameter =533.66 mm = 600 mm Diameter =496.62 mm = 500 mm
Thickness = 13.52 mm = 14 mm Thickness = 12.27 mm = 13 mm

Baffle Baffle
Spacing = 120 mm, Length = 450 mm, Thickness = 14 mm Spacing = 100 mm, Length = 375 mm, Thickness = 13 mm

Tie rods
Ti d Tie rods
Ti d
No : 8, Diameter 14 mm No : 8, Diameter 13 mm

Tube Tube
Thickness = 3.7 mm = 4 mm Thickness = 3.7 mm = 4 mm

Tube sheet Tube sheet


Thickness = 165.98 mm =166 mm Thickness = 198.17 mm =199 mm

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Evaporator Evaporator

Heating medium
Heating surface
Circ lation method
Circulation

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Stander short tube Stander short tube


vertical Evaporator vertical Evaporator

¾1-6 m drum L ¾1-6 m drum L


¾25-75 mm tube D

Stander short tube Stander short tube


vertical Evaporator vertical Evaporator

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¾1-6 m drum L ¾1-6 m drum L


¾25-75 mm tube D ¾25-75 mm tube D
¾750 – 2000 mm tube L ¾750 – 2000 mm tube L
¾Inside outside tubes

Stander short tube Stander short tube


vertical Evaporator vertical Evaporator

¾1-6 m drum L ¾1-6 m drum L


¾25-75 mm tube D ¾25-75 mm tube D
¾750 – 2000 mm tube L ¾750 – 2000 mm tube L
¾Inside outside tubes ¾Inside outside tubes
¾Tube sheet ¾Tube sheet
¾Down take 40-100 %
tube A

Stander short tube Stander short tube


vertical Evaporator vertical Evaporator

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¾1-6 m drum L
¾25-75 mm tube D
¾750 – 2000 mm tube L
¾Inside outside tubes
¾Tube sheet
¾Down take 40-100 %
tube A
¾B ffl
¾Baffles

Stander short tube


vertical Evaporator

¾1-6 m drum L ¾1-6 m drum L


¾25-75 mm tube D ¾25-75 mm tube D
¾750 – 2000 mm tube L ¾750 – 2000 mm tube L
¾Inside outside tubes ¾Inside outside tubes
¾Tube sheet ¾Tube sheet
¾Down take 40-100 % ¾Down take 40-100 %
tube A tube A
¾B ffl
¾Baffles ¾B ffl
¾Baffles
¾Propeller at bottom ¾Propeller at bottom
¾Head dished conical

Stander short tube Stander short tube


vertical Evaporator vertical Evaporator

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¾1-6 m drum L ¾1-6 m drum L


¾25-75 mm tube D ¾25-75 mm tube D
¾750 – 2000 mm tube L ¾750 – 2000 mm tube L
¾Inside outside tubes ¾Inside outside tubes
¾Tube sheet ¾Tube sheet
¾Down take 40-100 % ¾Down take 40-100 %
tube A tube A
¾B ffl
¾Baffles ¾B ffl
¾Baffles
¾Propeller at bottom ¾Propeller at bottom
¾Head dished conical ¾Head dished conical
¾Nozzles ¾Nozzles
¾support ¾support
Stander short tube Stander short tube ¾Drain, vent, manholes,
vertical Evaporator vertical Evaporator sight glass, level gauge

Thermodynamic Steam trap Thermodynamic Steam trap

Condensate outlet

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Thermodynamic Steam trap Thermodynamic Steam trap

Disc , Seat ring, outlet, Disc , Seat ring, outlet,


Inlet, Control chamber Inlet, Control chamber

Thermodynamic Steam trap Thermodynamic Steam trap

On start-up, incoming pressure raises the disc and Hot condensate flowing through the trap releases
cooled condensate, plus air, is immediately flash steam. High velocity creates a low pressure area
discharged . under the disc and draws it towards the seat.

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Thermodynamic Steam trap Thermodynamic Steam trap


At the same time there is a
pressure build-up of flash
steam in the chamber above
the disc which forces it down
against the pressure of the
incoming condensate until it
seats on the inner ring and
closes the inlet. The disc also
seats on the outer ring and
traps pressure in the chamber.

Due to this alone the disc will never seat. However, steam can Pressure in the chamber is decreased by condensation of
flow round the edge of the disc resulting in a pressure build up
the flash steam and the disc is raised. The cycle is then
in the control chamber D
repeated .

Thermodynamic Steam trap


Tube are suspended
on basket

Basket type Evaporator

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Easy to clean

External Calendria
Vertical Tube
Evaporators Long Tube Vertical Evaporators

Thin film evaporator

Horizontal tube evaporator

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Multiple effect evaporator schematic


Multiple effect evaporator

Vapour Release Drum Size

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Vapour Release Drum Size Vapour Release Drum Size


Drum size factor Drum size factor

Vapour Release Drum Size


Drum size factor

Rd : drum size factor


Rd = 0.3-0.5 for drum without entertainer
Rd = 0.9-1.3 for drum with entertainer (wire mesh)

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Cylindrical shell subjected to external Cylindrical shell subjected to external


pressure or Internal Vacuum pressure or Internal Vacuum
Elastic bucking

Cylindrical shell subjected to external


Open End
pressure or Internal Vacuum
Elastic bucking

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Open End

Close End

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P ≤ Pc/4 P ≤ Pc/4
4 : ffactor
t off safety
f t 4 : ffactor
t off safety
f t
Cross check
PD
fc =
2t

Consider vertical short tube evaporator with following data


Evaporator drum : operating under vacuum
maximum 500 mm Hg
Amount of water evaporated : 1750 kg/hr
Heat transfer area :140 m2
Steam pressure : 0.25 N/mm2
Density of Liquid : 1000 kg/m3
Drum Size factor : 0.4
Density of Vapor : 0.083 kg/m3
P ≤ Pc/4 Material of construction
4 : ffactor
t off safety
f t E
Evaporator
t :carbon
b steel
t l IS-2062
IS 2062
Corrosion allowance 1.5 mm
Tubes : brass (Square Pitch)
Cross check Permissible stress for carbon steel :98 N/mm2
PD Modulus of Elasticity
fc = Carbon steel : 19.0 X 104 N/mm2
2t Brass : 9.5 X 104 N/mm2
Poisson’s Ratio for both materials :0.3
Conical head at bottom and Top : cone angle 120°
fc = permissible stress value

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3/11/2014

Calculate
Diameter of evaporator drum
Height of vapor space
Number and diameter of tube
Diameter and thickness of calendria
Thickness of evaporator tube and drum
Thickness of tube sheet

Home work
Detail designing of heads, flanges, gasket
Nuts and bolts
Stander short tube
vertical Evaporator

Vapour Release Drum Size


Drum size factor

Rd : drum size factor


Rd = 0.3-0.5 for drum without entertainer
Rd = 0.9-1.3 for drum with entertainer (wire mesh)

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Tube sheet thickness

P ≤ Pc/4
4 : ffactor
t off safety
f t
Cross check
PD
fc =
2t

fc = permissible stress value

Consider vertical short tube evaporator with following data


Evaporator drum : operating under vacuum Calculate
Amount of water evaporated : 2500 kg/hr Diameter of evaporator drum
Heat transfer area :220 m2
Steam pressure : 0.15 N/mm2 Height of vapor space
Density of Liquid : 1000 kg/m3 Number and diameter of tube
Density of Vapor : 0.083 kg/m3 Diameter and thickness of calendria
Drum Size factor : 0.4
Material of construction
Thickness of evaporator tube and drum
E
Evaporator
t :carbon
b steel
t l IS-2062
IS 2062 Thickness of tube sheet
Corrosion allowance 1.5 mm
Tubes : brass (Triangular Pitch) Home work
Permissible stress for carbon steel :98 N/mm2
Modulus of Elasticity
Detail designing of heads, flanges, gasket
Carbon steel : 19.0 X 104 N/mm2 Nuts and bolts
Brass : 9.5 X 104 N/mm2
Poisson’s Ratio for both materials :0.3
Conical head at bottom and Top : cone angle 120°

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Vapour Release Drum Size


Drum size factor

Rd : drum size factor


Stander short tube Rd = 0.3-0.5 for drum without entertainer
vertical Evaporator Rd = 0.9-1.3 for drum with entertainer (wire mesh)

P ≤ Pc/4
4 : ffactor
t off safety
f t
Cross check
PD
fc =
2t

fc = permissible stress value

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Tube sheet thickness

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3/11/2014

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3/11/2014

Q. Consider U-tube, 2 Pass Shell and Tube heat exchanger with


following give data discuss its total design

44