CHAPTER IV

Costing and Project Estimation

4.1. Estimation of Equipment Cost

A cost estimate is the approximation of the cost of a program, project, or operation.

Estimations for the equipment costs are based on the costs estimated at www.matche.com

which uses a cost index of 525.4 for year 2014 and using the chemical engineering cost index

(CEPCI) for year 2013 with a given value of 567.3.

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

4.2. Purchased Equipment Cost

4.2.1. Cost for washer

Washer is primarily consisting of a conveyor and water spray for washing the rice

grains. The grains will be conveyed upward while spraying them with water. Below this is a

large container where the spent water flows that will be filtered using sand filters which will

later be used as steam for the boiler. The estimated time for washing the rice grain is 2 hours

and holding time of 8 minutes.

The basis for the calculation is a washing machine with a volume of 0.972m3 and a

production capacity that ranges from 500 – 700 kg/hr.

Basis: 44,277.61 kg rice grain/brew

 44,277.61kg rice grain / brew
Operating Capacity 
2

1hr
Operating Capacity  22,138.805 kg / hr   8 min
60 min

Operating Capacity  2951.84 kg / min

0.972 V

600 2951.84 kg / min

V  4.78m3

Therefore, the cost of the washer is computed through solving for the present cost:

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  7000 
525.4

Pr esent cos t  7,558.24

4.2.2. Sand Filter

Basis: 19,924.93kg/brew

10001 264.1720 gal

Operating Capacity  19,924.93kg  
1000kg 10001

Operating Capacity  5263.60 gallons

Therefore, the cost of the sand filter is computed through solving for the present cost. The

Operating time is 4 hours and the loading rate is 3m3/hr-m2.

19.924m3 1brew

Filter Area  brew 3 4hours
3m
hr  m 2
Filter Area  1.66m 2

For 2 Sand Filter  2  72600  145,200

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  145200 
525.4

Pr esent cos t  159,266.76

4.2.3. Roller Mill

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  50400 
525.4

Pr esent cos t  54,419.34

4.2.4. Mash Tun

Basis: 46,491.49kg/brew

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  136700 
525.4

Pr esent cos t  147,601.66

4.2.5. Filter Press

Basis: 53,192.44kg/brew

53.192m3 1brew

Filter Area  brew 3 3hours
3m
hr  m 2
Filter Area  5.91m 2

For 2 Filter Pr ess  2  13900  27800

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  13900 
525.4

Pr esent cos t  30,017.02

4.2.6. Wort Boiler

Basis: 58,114.37kg/brew

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  212800 
525.4

Pr esent cos t  229,770.54

4.2.7. Heat Exchanger

For 2 heat exchanger  4100  2  8200

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  8200 
525.4

Pr esent cos t  8,853.94

4.2.8. Fermenter

Basis: 55,232.36kg/brew

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  129200 
525.4

Pr esent cos t  139,503.54

4.2.9. Carbonation Tank

Basis: 52,957.35kg/brew

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  47900 
525.4

Pr esent cos t  51,719.97

4.2.10. Chlorination Tank

Basis: 31,056.44kg/brew

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  39800 
525.4

Pr esent cos t  42,974.00

4.2.11. Compressor

index @ 2013
Pr esent cos t  Cost @ 2014
index @ 2014

567.3
Pr esent cos t  77300 
525.4

Pr esent cos t  83,464.57

 Table 4. 1. Total Purchased Equipment

Purchased Cost

Cost($) Total Cost

Equipment Quantity (2014) ($)

Washer 1 7000 7,558.24

Sand filter 2 145,200.00 159,266.76

Roller Mill 1 50,400.00 54,419.34

Mash Tun 1 136,700.00 147,601.66

Filter Press 2 13,900.00 30,017.02

Wort Boiler 1 212,800.00 229,770.54

Heat Exchanger 2 8,200.00 8,853.94

Fermenter 1 129,200.00 139,503.54

Carbonation Tank 1 47,900.00 51,719.97

Chlorination Tank 1 39,800.00 42,974.00

Compressor 1 77,300.00 83,464.57

TOTAL 14 $868,400.00 $955,149.58

4.3. Fixed Capital Investment

About 85 to 90 percent of total capital is comprised generally of fixed capital. Fixed capital is

the total cost of processing installations, buildings, auxiliary services, and engineering involved in

the creation of a new plant. Fixed Capital Investment was computed on the basis of the purchased

equipment cost.

Timmerhaus stated that equipment cost is 15 – 40% of the FCI. For the production of Rice

Beer, the percentage was set as high as 40 %.

Based from the computed total purchased of equipment cost is $955,149.58 (47,757,479php).

Assumption: Purchased Cost is 40% of FCI

47,757,479  (0.40) FCI

FCI  119,393,697.5

Land cost was computed by getting the total land area of the entire plant. The following table

summarizes the estimation of the land area in each part of the plant.

s
 Table 4. 2. Summary of Lot Allotment

Lot Allotment Area(m2)

Process Area 8000
Administrative Office 1500
Canteen 150
Warehouse 200
Clinic & Safety 300
QA Room 700
Control Room 450
Guard House 150
Lagoon 250
Wastewater Treatment Area 500
Water Storage Area 200
Power House 150
Comfort Room 150
Parking Lot 500
TOTAL 13200

Actual Cost of land  1000 per square meter

Total Land Area  13,200 square meters

P1000
Total land cos t  13,200m 2 
1m 2

Total land cos t  P13,200,000

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