W6_HERU_ Power Sizing Material Pump

1.      Problem recognition, definition and evaluation

Material purchase plan at Pertamina fire pump with a capacity of 300 gpm. For completeness required tender price estimate the required capacity but documents in the database rates a mention that no specification is needed, there is a smaller capacity of 200 gpm procurement of material in 2009.

2.      Development of the feasible alternative

Meet the price reference data have been made to several manufacturing and sourcing have not gotten a reply fax or email while material procurement requirements should be implemented as soon as possible. There are several options that should be taken by the management to assign employees :

1. Come to fabricate gas company asking price
2. make estimated price with existing data.

Table 1. Pump price list

No	Description	Price (USD)	Remarks
1	Pump cap. 250 gpm	200,000	Tahun 2009
2	Pump cap. 200 gpm	180,000	Tahun 2008
3	Requirement pump cap. 300 gpm	?	Tahun 2013

                             

4.      Selection of criteria

To select items one would require time so it does not allow for the purchase of an urgent nature. So mangement select an item number 2 Which was the estimate could be accounted for, and the purchase of materials can be realized as soon as possible.

5.      Analysis

In calculating the estimated purchase price of the material there are several stages of :

1. Power sizing technique

Ca/Cb = (Sa/Sb)^x

Where :

Ca = cost for plant a

Cb = cost for plant b

Sa = size of plant a

Sb = size of plant b

x = cost capacity factor between 0,68 for nuclear generating plants and 0,79 for fossil-fuel generating plants

2. Escalation index

Cn = Ck (In/Ik)

Where :

k  = reference year for which cost or price of item is known

n  = year for which cost or price is to be estimated (n >k)

Cn = estimated cost or price of item in year n.

Ck = cost or price of item in reference year k.

Simulation with powewr sizing technique

Ca/Cb = (Sa/Sb)^x

200,000/Cb = (200/300)^0,79

0,73Cb = USD. 200,000,-

Cb = USD. 273,972,- (unit price in year 2009)

Simulation with escalation index

Cn = Ck (In/Ik)

Cn = USD. 273,972 (1.412)

Cn = USD. 386,848,-

Obtained the price to pump 300 gpm is equal USD. 386,8484,-

6.      Selection of alternative

The calculation is used as an estimate of the price and the bid price basis.

7.      Performance monitoring and post-evaluation of results

Finally purchase requirement materail pump as urgency Pertamina refinery needs to operate more quickly than if we choose a price with a higher level of accuracy that will take a long time. With this method of sizing power and escalation index that can be accounted for. 

References:

·         William G. Sullivan, Elin M. Wicks, and C. Patrick Koelling (2011), Engineering Economy (15^th Edition), Chapter 3