# What is the 6 10th rule?

## 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 . 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 .

### 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