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# Plant Cost Index

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### #1 Guest_iPawn_*

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Posted 27 February 2009 - 03:37 PM

I am a chemical engineering student, and for our design project we have to incorporate the cost analysis for our reactor process. we found table for cost index in a magazine in the library, but i was confused as to what the actual index numbers mean and represent in relation to analyzing the cost for the different components used in our design.

thanks

### #2 riven

riven

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Posted 02 March 2009 - 05:23 AM

QUOTE (iPawn @ Feb 27 2009, 09:37 PM) <{POST_SNAPBACK}>
I am a chemical engineering student, and for our design project we have to incorporate the cost analysis for our reactor process. we found table for cost index in a magazine in the library, but i was confused as to what the actual index numbers mean and represent in relation to analyzing the cost for the different components used in our design.

thanks

I am not sure exactly what you mean but I guess the index you found is the marshall and swift index for equipment costs.

In equipment costing especially for students you will be working with data that is old. For example you might cost a reactor but based on cost data (i.e. steel cost, inflation rate etc) from say 2003. To correct this vale in an approximate way to the 2009 value (or any other date), you use an index such as the Marshall and Swift for said equipment.

So e.g. reactor cost 20,000 based on 2003 data. MSI value for 2009 for reactor (not real value) is say 2. Than means the estimated cost of the reactor in 2009 will be 20,000*2 = 40,000.