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10 Cards in this Set
- Front
- Back
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When is procurement of major process equipment necessary? |
During Detailed Engineering |
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When are various pieces of equipment specified in flow plans and design specifications? |
During Conceptual Engineering |
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Why is it important to monitor equipment and their associated costs? |
To see if an overrun may occur. |
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Procurement of process equipment includespreparation of mechanical specifications as wellas the actual purchase of the following types ofitems (examples): |
Reactors Pumps Compressors Tanks Towers Drums Heat Exchangers |
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If overruns of these early purchases are occurringpersistently, it may be an indication that thelatest estimate (possibly the semi-detailedestimate) will probably be ____________. |
exceeded |
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Overrunsmay be occurring due to the following: |
High Period of Cost Escalation (Inflation) Hot Economy (Suppliers/Contractors too busy) Overly aggressive prior estimate Overly conservative equipment design |
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It is possible that the project may be in ___________. It may be necessary to update the _____________ again. |
jeopardy; estimate |
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The following are some advantages of completingan estimate an estimate In House versus utilizing only “In House” versus utilizing onlyvendor quotes: |
-The In House estimate can generally be preparedquickly and made available when needed. -The In House estimate can have a set base timeperiod so that escalation can be kept separateand incorporated to all items in a similar fashion. -Comparison with the prior estimate can be donebecause there will likely be a similar format forthe updated version of the estimate. |
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Controlling and forecasting costs related toequipment design and purchases can becompleted by... |
tracking cost with a cost historytable (see page 207 in the text). |
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When does escalation come into play? |
Whenever there is a time periodbetween the estimate and the actual delivery ofan item. |
