ChE 423 FEASIBILITY REPORT ASSIGNMENT GUIDELINES

Ir. zlem ZTRK

This paper is to guide you while preparing your ChE 423 Feasibility Report assignments. The report
should include:

1. MARKET SURVEY (PRESENT AND FUTURE DEMAND AND SUPPLY, NEW USES, PRICE RANGE OF
PRODUCTS, CONSUMER CHARACTERISTICS)
2. COMPETITION (PRODUCTS,PROCESSES AND PRICES OF COMPETITORS)
3. PRODUCTION METHOD (PRELIMINARY DESIGN)
4. PLANT LOCATION AND LAYOUT
5. TECHNOLOGY AND PATENT SITUATIONS (IF APPLICABLE)
6. ORGANIZATION AND LABOR REQUIREMENTS
7. RAW MATERIALS (COST AND AVAILABILITY)
8. WASTE DISPOSAL AND SAFETY/SECURITY CONSIDERATIONS
9. STORING, PACKAGING, SHIPPING REQUIREMENTS
10. FACILITIES AND EQUIPMENT THAT SHOULD BE BUILT OR PURCHASED ( INCLUDING LAND,
BUILDINGS, UTILITIES, SERVICES, ADMINISTRATIVE FACILITIES, PRODUCTION AND TEST
EQUIPMENT)
11. INVESTMENT COST (CAPEX)
12. PRODUCTION COST (OPEX)
13. FINANCIAL ANALYSIS
14. PROFIT AND RETURN ON INVESTMENT
15. OPTIMIZATION
16. SENSITIVITY
17. BASIC IMPLEMENTATION PLAN

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ChE 423 FEASIBILITY REPORT ASSIGNMENT GUIDELINES

Ir. zlem ZTRK

In order to be able submit a succesful feasibility study you are encouraged to follow the below steps:
1. Form your team (5-6 student per each team, you are free to choose your group members)
Due: 2 weeks after the start of semester
2. Select a topic (You are free to choose the product, of course the expectation is that the product is
chemical/food industry related. Please have the time to imagine what would you like to produce
in a field related with your background (chemical/food) if you would be given enough capital to
follow your passion. The topic you choose first needs to be alligned with me in order to proceed
with the next steps. Creativity and uniqueness is highly encouraged)
Due: 4 weeks after the start of semester
3. Submit your workplan. The workplan should have a breakdown of the work packages and should
adress the responsible team member. The deadline for the completion of the report is the end of
the semester, however you are advised to make your planning to complete one part of the report
weekly/biweekly and have a discussions with me to make sure you are on the right track.
Due: 5 week after the start of semester
4. Start following your plan and dont forget to communicate with me in between!
5. Submit your report and make a presentation
Due: End of Semester

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ChE 423 FEASIBILITY REPORT ASSIGNMENT GUIDELINES

Ir. zlem ZTRK

Please find below the grading criteria that I will use while evaluating your final report:
ChE 423 Feasibility Study Grading Criteria
Criteria

Impact

Remarks

Uniquenes of the
topic

5%

Assume that you will get the amount of capital you need to start your own business in the field of chemical/food industry. What would
you like to do?
You are advised to think out of the box and select a 'unique' topic. In case a well known process is studied, a unique element is advised
to be included (i.e. a new Raw Material).

Planning and
Communication

10%

Your commitment to the schedule, and communication with the instructor during the phase of preparation, quality of the report
overall (just format)

10%

Presentation should reflect all the content but should be brief and to the point. Not more than 20-25 slides.
Presentation skills (way of presenting) will also be evaluated. Assume that this presentation will be used to convince your
manager/bank or whoever it is that will give you the capital to implement your idea.

10%
10%
10%
10%

Quality of Market Analysis, Competitors in the field. Discussion on plant location, reasons for the selection
should be explicitly mentioned.
Quality of Process Design, proper selection of unit operations and process equipment. Proper sizing of equipment.
All the items in CAPEX (refer to the lecture notes) should be included, where applicable.
All the items in 'Production Cost' (refer to the lecture notes) should be included, where applicable.

10%

Calculation of profitability, ROI, payback period and etc

Sensitivity

10%

You should be able to identify the cost items that has a relatively high influence on the profitability and make a sensitivity to access
the dependence of profitability to changes on the defined parameter.

Discussion

5%

Optimization

10%

Presentation
Market Analysis,
Plant Location
Process Design
CAPEX Calculation
OPEX Calculation
Economic
Evaluation

Your understanding on the calculated parameters will be evaluated. You should be able to evaluate the
meaning of all the calculations and make a proper suggestion on whether or not making the proposed investment.
Based on the sensitivity and discussion, you will propose parts that could be better optimized. Detailed calculations will be mandatory
for the selected groups.

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