Print this page Process Equipment Cost Estimating By Ratio And Proportion
Randall W. Whitesides, P.E.
Course Outline
This course will
provide new methods of estimating for some and refresher information for others.
The course material can be used as a reference source for actual future situations.
Students of this one-hour online course will be provided with two simple methods
to arrive at approximate equipment costs during preliminary estimate preparation.
This course includes a true-false choice quiz at the end.
Learning Objective
At
the conclusion of this course, the student will:
- Understand the applicability of ratio and proportion estimating methods,
- Learn the technique to factor costs to correspond to varying equipment sizes and capacities, and
- Learn the technique to escalate or otherwise adjust historical costs.
Course Introduction
This course provides
the student with an understanding of the estimating technique known as "The Rule
of Six-tenths" and if required, use of the rule in combination with cost indices.
The various types of estimates are discussed as requisite background. Equations
are provided to enable the student to escalate or otherwise adjust historical
equipment cost data. Course
Content The
course content is in a PDF file (83 KB)
Process Equipment Cost Estimating By Ratio And Proportion.
Course Summary
While there may be sophisticated software available to generate accurate cost estimates, we should never lose sight of the importance of understanding the basis for costs. Never let computer output cloud simple estimating judgment. It is novel to be armed with simple, quick, easy to understand techniques to arrive at approximate equipment costs.
The Rule of Six-tenths and the use of cost indices are two readily available and easy-to-use ratio and proportion methods to quickly estimate equipment costs.
Once you finish studying the above course content, you need to take a quiz to obtain the PDH credits.
DISCLAIMER: The materials contained in the online course are not intended as a representation or warranty on the part of PDHonline.com or any other person/organization named herein. The materials are for general information only. They are not a substitute for competent professional advice. Application of this information to a specific project should be reviewed by a registered professional engineer. Anyone making use of the information set forth herein does so at their own risk and assumes any and all resulting liability arising therefrom.
