PD-12-09 The Economics of Process Measurements

Description:

What is the economic value of a new measuring device in a process plant – a new analyzer, a more accurate flow measurement, an additional temperature or pressure measurement, etc.? More measurements generally reduce the uncertainty in evaluating the past performance, the current state and the expected future performance of the plant. The reduction in uncertainty should then result in improved decisions. Quantifying the possible improvement in future decisions and their possible impact on plant profitability is used to economically value the measurement. In this presentation a framework is offered to quantitatively address this subject and examples from the process industries are used to illustrate the procedures developed.