Download
Download eBook for Free
| Format | File Size | Notes |
|---|---|---|
| PDF file | 2.3 MB | Use Adobe Acrobat Reader version 10 or higher for the best experience. |
Purchase
Purchase Print Copy
| Format | List Price | Price | |
|---|---|---|---|
| Add to Cart | Paperback64 pages | $23.00 | $18.40 20% Web Discount |
The purpose of this study is to determine and detail the process, mechanisms, and information that firms use in estimating costs, performance, and risk of innovative plants. The focus of the study is on project formation; the process of bringing a technical idea through R&D to the executive decision to proceed to project definition. The Note discusses the process and techniques a sample of firms in the chemical processing industry use to ensure accurate, complete estimates and information in their project formulation for innovative process plants. The focus is on the estimates and project proposals generated prior to project definitions. The findings are based on conversations with representatives of ten chemical/petrochemical firms. The study examined how firms were adapting to past estimation error and ways they sought to improve estimation accuracy. It was found that firms, even those with large assets, did not use sophisticated, highly technical analytic methods to arrive at estimates of project cost, performance, and technical risk.
This report is part of the RAND Corporation Note series. The note was a product of the RAND Corporation from 1979 to 1993 that reported other outputs of sponsored research for general distribution.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.