## What is the 6 10th rule?

A rule of thumb developed over the years known as the rule of six-tenths gives very satisfactory results when only an approximate cost within plus or minus 20% is required. entitled “Six-tenths Factor Aids in Approximating Costs”.

### What is the 0.6 rule?

In its basic version the “0.6 rule” states that the increase in capacity of equipment is greater than the increase in equipment cost, in a form analogous to the relationship between volume and surface area.

#### What is the capacity factor method?

The capacity factor estimating method provides a relatively quick and sufficiently accurate means to prepare early estimates during the concept screening stage of a project. The method requires historical cost and capacity data for similar plants and processes.

**What is a good Lang factor?**

These factors are widely used in the refining and petrochemical industries to help estimate the cost of new facilities. A typical multiplier for a new unit within a refinery would be in the range of 5.0. The accuracy of this estimate method usually is +/- 35%.

**What is included in Lang factor?**

Lang factor relates purchased equipment cost to total capital investment (TCI) and fixed capital investment(FCI). This factor represents the cost of building a major expansion onto an existing chemical plant, including other costs such as piping, control, etc.

## What does it mean when a cost capacity factor is 1 What does it mean when it is 1?

A scale factor of exactly 1 indicates that a linear relationship exists and there is no change in the incremental cost per unit of added capacity [4]. A scale factor of 1 also indicates that it is just as economically feasible to build two small facilities as one large facility with the same capacity [5].

### What is cost factor?

Definition of cost factor : an element or condition related to a unit of product or to an activity or to a service for which money must be spent (as raw material, direct labor, and burden)

#### Does Lang factor include contingency?

Overhead cost included insurance, taxes, contingency, field and office expense, temporary construction facilities, and contractor fee.

**What is hand factor?**

Hand method Hand’s factors exclude indirect field costs (IFC), home office costs (HOC), and the costs for OSBL facilities, all of which must be estimated separately.

**What is installation factor?**

The installation factor, or total installed cost (TIC) factor, includes subcontracted costs, associated direct labor costs and materials needed for installation of equipment.

## What does plant capacity factor indicate?

Plant capacity factor (P.C.F.): It is the ratio of actual energy produced to the maximum possible energy that could have been produced during a given period.

### How do you use the six tenths rule in purchasing?

Use the six-tenths rule to estimate the percentage increase in purchased cost when the capacity of a piece of equipment is doubled. [Pg.187] Special care must be taken in using the six-tenths rule for a single piece of equipment. The cost exponent may vary considerably from 0.6, as illustrated in Example 7.4.

#### What does six tenths mean in engineering?

six-tenths factor. [′siks ¦tenths ‚fak·tər] (industrial engineering) An empirical relationship between the cost and the size of a manufacturing facility; as size increases, cost increases by an exponent of six-tenths, that is cost1/cost2= (size1/size2)0.6.

**What is the six-tenths factor?**

six-tenths factor. An empirical relationship between the cost and the size of a manufacturing facility; as size increases, cost increases by an exponent of six-tenths, that is cost1/cost2= (size1/size2)0.6.

**What is the six-tenths rule of thumb?**

The Rule of Six-tenths Approximate costs can be obtained if the cost of a similar item of different size or capacity is known. A rule of thumb developed over the years known as the rule of six-tenths gives very satisfactory results when only an approximate cost within plus or minus 20% is required. An