Exergoeconomic Analysis as a Cost-Control Mechanism in Manufacturing Operations

Abstract

The aim of the study is to demonstrate the application of exergoeconomic analysis as a cost control mechanism in manufacturing operations with a focus on industrial beverage carbonation system. Exergoeconomic analysis is a thermodynamic tool that can identify cost rate of exergy destruction (hidden cost) associated with a machine or a system that cannot be identified using typical cost management techniques applied in industries. Exergy analysis was performed to examine the performance parameters of each unit in the system using mass and energy balance. Cost rate of exergy destruction was performed using the thermoeconomic analysis of energy systems software. The study reviews that the total hidden cost in the carbonation system was $777.31/hr, while the total cost rate related to the investment and maintenance of the system was $45.13/hr. The study concluded that reduction of exergy destruction in the mixer and other subsystems within the carbonation system is very crucial to the improvement of the cost rate in beverage production.