The Kingdom of Saudi Arabia is a major oil-producing company. To facilitate the delivery of crude oil
Question:
The Kingdom of Saudi Arabia is a major oil-producing company. To facilitate the delivery of crude oil from oil wells to staging and delivery points, the country is connected with complex networks of steel pipes. Steel pipes although cheap in the initial price but require expensive maintenance from avoidable corrosion. This has pushed the idea of replacing more steel pipes with composite pipes. You as a young entrepreneur decided to invest in a manufacturing facility to make composite pipes. To convince the national oil producing company to invest in your idea, you need to provide a preliminary business report detailing the following:
a). A design for the composite pipes toward oil transfer and choice of material. Provide calculations and Engineering drawings.
b). A detailed production plan including the process, tools, needed labor.
c). Cost analysis for making and installing 3000 km of pipes on flat land. This includes the cost of manufacturing and installation (think about e.g. joining processes. Etc.)
Cost Benefit Analysis Concepts and Practice
ISBN: 978-0137002696
4th edition
Authors: Anthony Boardman, David Greenberg, Aidan Vining, David Weimer