how_engineers_think

               Relative Cost Ratio/Index Method This is another interesting and novel method of calculating capital cost developed by author during his experience over the years. This is based on the concept that relative cost of any plant and equipment; industrial products remain constant and fixed over the period of time for any place or country. For example, relative cost of a bicycle, scooty and car will be same irrespective of time and place. Similarly, relative cost ratio of a three-phase motor and matching gear box and coupling is a constant not affected by time or place. Similarly, relative cost ratio of one Million Tonnes (MT) steel plant & four MT steel plant is constant (Not necessarily linear). Similarly, ratio between 1000 MW Thermal Power Plant with 1 MT steel plant, Cement Plant is constant for a place at any time. By knowing the cost of one the cost of other can be easily calculated. Engineer shall work out these ratios and u...