Daily Archives: November 9, 2013

W11_SSD_Selection of Solar Photovoltaic System Based on Payback Period


  1. Problem Definition

In this blog I am going to do find out the Payback Period for my PV installation, based on the data that I had used for my W4 Blog. With this Blog, I also would like to use this blog to claim for Problem Solving Work for Engineering Economic Chapter 5 Evaluating a Single Project.

The Payback Period Method calculates the number of year for the cash inflow to just equal to the cast out flow. The Simple Payback Period calculation, which ignores the time value of money, is based on the following formula:

                                    (1-1)

Rk = excess of revenue over expenditure in period k;

Ek = excess of expenditure over revenue in period k;

Ɵ = payback period

I = capital investment at k=0

For Discounted payback Period calculation, which considers the time value of money, the calculation is based on the following equation:

                                (1-2)

Ɵ’ = discounted payback period

i% = MARR

 

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Filed under Sadat SD, Week 11

W10_SSD_Selection of Solar Photovoltaic System Based on External Rate of Return (ERR)


  1. Problem Definition

In this blog I am going to do find out the External Rate of Return for my PV installation, based on the data that I had used for my W4 Blog. With this Blog, I also would like to use this blog to claim for Problem Solving Work for Engineering Economic Chapter 5 Evaluating a Single Project.

The ERR calculation is based on the following formula:

(1-1)

Rk = excess of revenue over expenditure in period k;

Ek = excess of expenditure over revenue in period k;

N = project life

ϵ = external reinvestment rate per period

i’% = ERR

Based on equation 1-1, the following formula is developed:

                (1-2)

                                (1-3) Continue reading

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Filed under Sadat SD, Week 10

W13_SSG_Identify Critical Month during the Project Life Cycle by Applying Pareto’s Law (20% of Project Duration)


PROBLEM DEFINITION

We are now in starting point of EPC execution phase where the contract of EPC work will be delivered. One of the critical month in the execution phase is when the resource loaded & cost incurred so “expensive”. Continue reading

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Filed under Sutoyo S, Week 13

W12_SSG_Identify Critical Month during the Project Life Cycle by Applying Pareto’s Law (80% Cost Incurred)


PROBLEM DEFINITION

We are now in starting point of EPC execution phase where the contract of EPC work will be delivered. One of the critical month in the execution phase is when the resource loaded & cost incurred so “expensive”. Continue reading

1 Comment

Filed under Sutoyo S, Week 12

W6_HPO_Determining The Asset’s Economic Life


1. Problem Statement

We plan to buy a new medium FPSO which costs estimated around US$ 50,000,000. Initially, we don’t have any clue for how long this new asset FPSO to give positive economic value. In finding the economic life of this asset, we will know when should we have to retire the asset. So the problem is how long the economic life of this new FPSO? Continue reading

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Filed under Hadianto P, Week 06

W11_SSG_Pareto’s Law for Controlling EPC Cost


PROBLEM DEFINITION

We are now in starting point of EPC execution phase where the contract of EPC work will be delivered. One of the contract requirement is to control the cost in order company are able produce benefit and margin. Continue reading

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Filed under Sutoyo S, Week 11

W10_TOM_Developing WBS & Risk Register for “Our Lovely House Brownfield Project” by using Humphreys Earned Value Project Management Technique


1. Problem Definition

Refer to my W9 Blog (https://simatupangaace2014.wordpress.com/2013/11/07/w9_tom_setting-up-our-lovely-house-brownfield-project-by-using-humphreys-earned-value-project-management-technique/), I have finished the step 1 – Identifying Project Objective and already proceeded into Step 2 – Work Scope Definition and Risk Assessment. The problems to be solved in this W10 blog are creating the WBS and do the Risk Assessment. Continue reading

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Filed under Tommy Edward, Week 10