Question

What are the steps to calculate the production rate when designing a chemical plant taking into consideration the

1-Other plants of the same chemical in the region

2- the demand at the country and if it’s possible to export it

3- the demand when the plant will start and the next 20 years

Answer 1

Calculating the rate of production is the most important part while designing a chemical plant because the main objective of the owner is to maximize the profit in limited resources and the profit is mainly based on the amount of production .

Steps to calculate production rate when designing a chemical plant:-

1 .Gather the information regarding the companies nearby which are producing the same chemical as yours. Get information about their market, quality and the selling price. What is the brand value of that company and what market share in that particular chemical is hold by the company.

2 . Gather the information regarding the demand of chemical in the market, the type and nature of industries using that chemical. What is the scope of exporting the chemical? How many companies are producing that particular type of chemical and how many companies are consuming that chemical. What is the total demand in tons per year of the chemical.

3. To consider the future demand of the chemical in the market in next 15-20 years. We must have the information regarding the companies flexibility in using that chemical in their process even after process has been modified or improved by the customer.

4 . To check the investment and yearly maintenance cost of running the plant which is fixed irrespective of the production rate. This is necessary to calculate production by breakeven analysis and provide the breakeven point by considering the variable cost per unit produced.

5. At last, a need to consider some factor that will help to give high quality production in minimum selling price to rule over the existing chemical producers and to get a hold and recognition in the market.