CHE4170 Workshop 9 Project Viability and Things To Consider in Developing PID
CHE4170 Workshop 9 Project Viability and Things To Consider in Developing PID
CHE4170 Workshop 9 Project Viability and Things To Consider in Developing PID
WORKSHOP 9
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PROJECT VIABILITY
• Group is expected to make a recommendation to the stakeholders based on the items listed
above
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TECHNICAL VIABILITY/SAFETY
▪ The project is technically viable, if the following conditions are met:
• Meets the defined capacity rating and throughput rate as defined in the project description
• Has engineering flexibility to meet moderate changes in product specifications in line with the evolving
needs of the customer.
• ISD considerations have been extensively critiqued and factored in and plant subjected to HAZID and
HAZOP studies
• Risk Assessment Studies- Bow Tie Analysis – Adequacy of Preventive and Mitigative Measures
• Is the facility a CIMAH site - Has the applicable regulations and conditional requirements factored in ?
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TECHNICAL VIABILITY/SAFETY 2
• The project is technically viable, if the following conditions are met:
• Site selection criteria meets no only various regulatory requirements but also addresses transportation
and logistics requirements
• Reliability engineering and an effective MPS defines manufacturing excellence and hence remove
unnecessary redundancies.
▪ What factors in the design could be further reviewed to improve the Technical Viability and Safety
adequacy? Be factual with regards to errors/omissions and assumptions.
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ECONOMIC VIABILITY
The project is economically viable if an acceptable rate of return can be achieved over the project life
(IRR = 12-15% or higher).
▪ Does the NPV look realistic ? How significant are the risks?
• Increased capital cost
• Increase in variable costs, in particular, raw materials
• Delayed start-up
• Reduced sales in the first few years as market grows
• Reduced plant availability
• Reduction in selling prices
What factors in the design could be used to improve the Economic Viability of the project, i.e. sensitivity
analysis, i.e. individual and a combination of adverse impacts and how they can be addressed.
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ENVIRONMENTAL VIABILITY
▪ What risks does the plant pose to the environment and are these acceptable?
▪ What factors in the design could be reviewed to further improve the overall environmental viability ?
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STRATEGIC AND TECHNOLOGY IMPACTS
What external factors could change the project viability? Start by assuming the project is NOT viable.
▪ Technically Viability → is there a new process or technology that could improve viability ?
• Increase yield and efficiency
• Better purification technology
• Reengineered, optimized technology, i.e reduced unit operations, reduced
• hardware.
▪ Economic viability
• Reduced tax regime, i.e corporate tax rates, IT allowances
• Government incentives, i.e reduced tariffs
• Long term supply contracts
• Price escalation formula built into sales contracts.
• Cheaper sources of raw materials
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RECOMMENDATIONS TO STAKEHOLDERS
▪ State clearly the project viability. If the project viability is adverse or suspect, you need to make some
recommendations as to how to proceed based on this study using the enablers provided in the earlier
slides.
• General Rule
1. Summarise, keep it short. Don’t introduce new data – Avoid reproducing key figures from previous sections,
but synopsize/distill to suit concluding remarks
2. everything should have been discussed in more detail in previous sections, i.e.
d. Project Economics/Viability
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REQUIREMENT OF DRAWING P&ID
• Piping and Instrumentation Diagram is an engineering drawing – technical drawing to fully define your
engineered items (process and equipment)
• It is not a sketch (like art drawing) hence it needs to have certain details before you can call it an engineering
drawings.
• Apart from putting automatic on/off valves, you need to include cause and effect matrix to complete the
safety later of your P&ID
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Example Piping
and
Instrumentation
Diagram
N1 N4 N2
N3
N6
N5
DDrawing no
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D
Equipment block – note that operating
temperature and pressure is optional
N1 N4 N2
N3
N6
Drawing N5
connectors: with
connecting
drawing numbers
in the connectors N1 N4 N2
N3 Drawing number
N6
Drawing N5
6. All control loops and instruments/safety instrument, with an instrument tag number:
7. Provision for startup, shutdown and maintenance purpose – e,g. bypass lines, purging connection and etc.
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SIMPLE CHECKLIST TO BE DONE IN P&ID
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SOME GENERAL TIPS FOR P&ID
• Use A3 paper at the very least - Drawing Border (~1 cm from edge)
• Develop P&ID drawing form the PFD – recommend to only put 2 to 3 pieces of equipment per drawing sheet.
Avoid cluttering your drawing.
• Use bold lines for main process lines and thin lines for utility/by-pass lines.
• Think if you need the following: interlock systems, drains, isolations and utility connections.
• You will most likely discuss your start-up, shutdown and maintenance of your equipment based on revised
PFD and P&ID. Make sure you include all the start-up, shutdown or bypass lines in your drawings.
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SOME GENERAL TIPS FOR P&ID 2
• Draw main process line entering from the left and leaving on the right (whenever possible)
• Draw utility process line entering from the left and leaving on the right (whenever possible)
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EQUIPMENT BLOCK EXAMPLE
PLANT ITEM NO V-101 P-101 A/B E-101
DESCRIPTION HCL HOLDING TANK CAUSTIC FEED PUMP SULPHURIC ACID COOLER
The one in highlighted in
yellow is not needed for your
DRAWING NO DWG-FD 1234 DWG – X 645 DWG – E 234 exercise
EQUIPMENT NUMBER 1 2 x 100% 1
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WHAT YOU SHOULD NOT DO
• No title block/title
• Hand drawn
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P&ID IN PROGRESS REPORT 4 AND FINAL REPORT 2
▪ This is an individual task. Each team member will submit a P&ID for the whole section (process block) that
he or she is responsible for.
▪ The P&ID should be drawn on A3 paper and submitted explanation per individual (recommend to keep this
within 2 pages), containing the following :
• Control and operation strategy for the particular process block (to achieve design objectives)*
• A write up on your maintenance layer, simple procedure for the maintenance work of one item or
equipment which may need to be replaced*, e.g. a dry gas line , 50-PG-12061-150CS-25H is
connected to process line to dry the moisture in process line 150-PG-12001-600CS-N and equipment
XX during maintenance.
• A write up on your safety layer, how you handle abnormal operations – a brief description your cause
and effect matrix, e.g. Shutdown valves 10-SDV-001 will trigger in the event vessel the pressure of V-
1002 exceeds XX barg.
*Note: If you have covered this writeup in the detailed design section, you can omit this.
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OTHER DETAILS IN P&ID WRITE UP
▪ The information provided must be as complete and comprehensive as possible , so that there is absolute
clarity and the subsequent HAZOP study picks up only minor issues.
▪ All team members should agree and use a standard set of symbols and this should be captured in the P&ID
legend sheet and form part of the Progress Report 4/Final Report submission.
▪ A common numbering system is also recommended, with one team member numbering lines equipment etc
starting with 1xx, the next student with 2xx etc, remembering that where lines and signals cross P&ID
boundaries, the numbering system between sheets needs also to be consistent.
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CAUSE AND EFFECT MATRIX
• This is required to record all the causes and actions of your multiple-inputs and multiple-outputs (MIMO)
actions.
• If you include a MIMO instrument in your P&ID, you will need to include this after your P&ID. Only the cause
and matrix of the drawn P&ID is required.
• This cause and effect matrix will supplement the safety considerations you provide in your detailed design.
• List all your “cause(s)” in the horizontal rows and all the “effect(s)” in the vertical columns.
Note: Only include MIMO items like safety shutdown, blowdown valves and PSV (multiple trigger causes).
Control valves are not part of cause and effect matrix.
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Drawing/ Document No.
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CASE STUDY 13 – CONSTRUCTING P&ID FOR V-1000
We have briefly discuss about the
detailed design of V-1000 in the gas
processing facility. Assuming that you
are the person in charge of the detailed
design of V-1000 and a draft P&ID is
given to you by your teammate (see
picture on the right). Using what we
have developed earlier,
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CASE STUDY 13 – NOTES
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CASE STUDY 14 – CAUSE AND EFFECT MATRIX
• Continuing from our discussion on the P&ID of V-1000, you are now required to construct the cause and
effect matrix for this section. Discuss how would you construct the cause and effect matrix for this item?
• Note: You might want to keep the drawing of case study 13 beside you for easy reference.
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CASE STUDY 14 – NOTES
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THANK YOU
lee.chernleing@monash.edu
https://lms.monash.edu/course/view.php?id=71767