Difficulty: Easy
Correct Answer: 10–15% of the capital cost
Explanation:
Introduction:
Start-up expenses account for the transition from construction to steady production, including commissioning runs, staff training, SOP validation, and early-run inefficiencies. A realistic allowance prevents underestimation of total funds required before positive cash flow.
Given Data / Assumptions:
Concept / Approach:
Chemical and biochemical plant cost guidelines often budget start-up in the low-to-mid teens percent of fixed capital for complex processes. Bioprocesses involve validation and contamination control, supporting a 10–15% allocation in many cases.
Step-by-Step Solution:
Step 1: Identify cost elements unique to start-up (commissioning, qualification, training).Step 2: Apply standard heuristic range to fixed capital.Step 3: Select 10–15% as a representative allowance.
Verification / Alternative check:
Process economics references list start-up typically around 10% with adjustments for regulatory environments and technology novelty.
Why Other Options Are Wrong:
Common Pitfalls:
Excluding validation and batch release costs; underestimating the number of commissioning runs needed to achieve specification.
Final Answer:
10–15% of the capital cost
Discussion & Comments