Cost analysis of a commercial pyroprocess facility on the basis of a conceptual design in Korea

Abstract

This study postulated a commercial pyroprocess facility (KAPF+: Korea Advanced Pyroprocess Facility Plus) with a processing capacity of 400tons/year as a cost object, and utilized an engineering cost estimation method based on a conceptual design to present the results of the total cost and unit cost estimation. According to the calculation results, the total cost and unit cost were calculated with k$779,386 and $781/kgHM, respectively. Moreover, the key cost driver was manifested as the operating and maintenance costs. In particular, equipment replacement cost was identified as an important cost driver. In addition, for an increasingly accurate cost estimation, the calculation results and allocation method of the indirect cost were reanalyzed. Finally the pyroprocess unit cost increased $5 when calculated the indirect cost using the labor time as the allocation standard. Meanwhile, the pyroprocess unit cost increased $22 as a result of allocating the indirect cost using the uniform labor cost as the cost allocation standard. Accordingly, an indirect cost allocation standard was manifested as the factor that exerts a significant effect on the pyroprocess unit cost.