Abstract
Cost estimation is a fundamental activity in engineering management and business decision making. It normally involves estimating the quantity of labor, materials, utilities, floor space, sales, overhead, time and other parameters over a given period of time. These estimates are used typically as inputs to deterministic analysis methods or to stochastic analysis methods. Cost of tank calibration which depends on the factors such as the capacity of tank, number of labour, method adopted, equipment etc. has not been standardized. In an attempt to standardize the cost of tank calibration, two separate models, one each for the two common methods of tank calibration; Manual Strapping Method (MSM) and Electro Optical Distance Ranging (EODR). These models were validated with actual cost of tank calibration obtained from four renowned calibration companies in the country and were found to be within the acceptable limit of ±10% deviation. Keywords: calibration, modeling, cost estimation, oil storage tank, standardization JEL Classifications: C2, C3, C5, D7 DOI: https://doi.org/10.32479/ijeep.8271
Highlights
Calibration of tanks involves determining the corresponding volume of a tank at an incremental level
Though wet method of tank calibration is adjudged to be the most accurate method of tank calibration but Geometrical method is often used because geometrical method could be used to calibrate any size of tank while wet method is limited to small size tanks such as horizontal storage tanks (Agboola et al, 2017; API 2555, 1998)
Geometrical method of tank calibration can be broadly divided into manual strapping method (MSM) and electro-optical distance ranging (EODR) method
Summary
Calibration of tanks involves determining the corresponding volume of a tank at an incremental level. Tank capacity table (calibration chart) generated from an accurate tank calibration is essential in oil industries because it gives information about the quantity of product in the tank at a particular level/height (Sun, 2000). It prevents unnecessary arguments/disputes about the receipt of refined product or crude oil into the oil storage tanks at the terminal. MSM which involves the winding of steel tape round the circumference of each shell of a tank, is the oldest traditional method of tank calibration which could further be modified/divided into optical reference line method and optical triangulation method (Savaraman, 2012).
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