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By J. Phillip Mackey

A whole new group of non-ferrous pyrometallurgical processes with the ability to utilize tonnage oxygen and capture sulphur dioxide were developed and commercialized over the period 1940s–1980s. Many of these earlier process developments were undertaken with limited knowledge of the process chemistry and influence of key process variables; in many cases, piloting helped provide much new physico-chemical data, but gaps remained. The second generation versions of these technologies of today provide all the primary copper, nickel and lead produced worldwide by pyro-metallurgical smelting. Further, process development has continued and a new generation of copper and lead smelting technologies have also been developed in China since the 1990s. The older reverberatory and blast furnaces have been progressively replaced by the newer technologies—a good example being the introduction in 1992 of the copper IsaSmelt technology at the Mt. Isa smelter in Australia where the former fluid bed roaster and reverberatory furnaces were replaced by a single new smelting unit, together with an acid plant for sulphur dioxide collection. The development of these new technologies was made possible by investment in fundamental and applied research. The lesson for the future is, in order to sustain these improvements, continued investment in research and development capability is required—to do otherwise is to risk obsolescence and lack of competiveness in the world market. Dr. Peter Hayes at The University of Queensland is one of the many researchers and process engineers who have contributed to the fundamental understanding of metallurgical processes over this period of rapid change in technologies. The present paper briefly outlines some of the many contributions Peter Hayes has made to the understanding of kinetics, mechanisms and phase equilibria in metallurgical systems, and metallurgical process development.

By Donna Post Guillen

"Cyclopentane, a flammable hydrocarbon, is being considered as a working fluid for waste heat recovery applications using Organic Rankine Cycles with Direct Evaporators. A postulated failure mode consisting of a pinhole leak in a heat exchanger tube raises safety concerns due to autoignition of the working fluid. Experiments were conducted to determine the ignition delay time (IDT) of cyclopentane using an Ignition Quality Test™ (IQT™) device. Two sets of experiments were conducted per ASTM D6890 (with exception to charge pressure and temperature) to determine ignition delay of the fuel at atmospheric pressure for standard air (-20.95% oxygen) and vitiated air (13.3% oxygen) at a temperature of 803 K. Operation of the IQT device at a much lower pressure (1 bar) than normal operation (21.4 bar) with a standard injector led to very rich conditions and wetting of the stainless steel chamber walls. Catalytic effects are postulated to produce the small IDTs observed. Experiments were repeated with a modified injector to prevent wall wetting, resulting in average IDTs that are substantially longer.IntroductionCyclopentane is being considered for use as a working fluid in a Direct Evaporator of an Organic Rankine Cycle (ORC). In this configuration, the heat exchanger is placed directly in the flow of the hot exhaust gas, rather than using a secondary heat transfer loop to isolate the flammable working fluid from the heat source. This configuration offers the advantages of approximately 15% lower cost and improved efficiency over a standard ORC. However, placing a heat exchanger operating with a flammable hydrocarbon in the hot exhaust gas stream presents potential safety risks. If a pinhole leak were to occur in the heat exchanger, working fluid could leak into the hot exhaust stream. Gas turbine exhaust is provided to the Direct Evaporator at a temperature of approximately 803 K, whereas the autoignition temperature of cyclopentane is 634 K (Gallant and Yaws, 1993). Autoignition of the working fluid has been identified as the key risk for this type of system.Autoignition occurs when sufficient self-heating by chemical reactions takes place to accelerate reaction rates to produce full-scale combustion. This is in contrast to forced ignition, in which an external source (e.g., spark) is employed to initiate the combustion process. For combustion to occur, the fuel to oxidizer concentration must be between the lower (lean) and upper (rich) flammable limits. The reaction rate depends on the species concentration of the fuel and oxidant, the local temperature and pressure. Ignition processes are comprised of steps that take a fmite amount of time. This latent period prior to the start of combustion is referred to as ignition delay time (IDT)."

Jan 1, 2012

By Olga K. Karakasi, Angeliki Moutsatsou, Ioanna Kavallari

"The present study focuses on the amelioration of the behaviour of high calcium fly ash (HCFA), investigating its application in a new environmental field: oil spill clean up. High calcium fly ash is a by-product of electric power plants, produced annually in large quantities, whose greater amount is landfilled. Some of its properties, such as its chemical and mineralogical composition, its fine particle size, its porosity, floating ability and hydrophobic character make it an attractive material for this purpose. Researches showed that when added to an oil spill, it forms a semi-solid phase, which allows the quite total removal of the oil, but it is not stably retained on the surface. In order to ameliorate its floating ability, the decrease in its specific gravity by mixing with a lighter material is investigated. In the present study the mixing with two materials, already used in oil spill clean up, sawdust and a polymer, has been examined. Addition of 15-25% w/w sawdust to HCFA results in a material with better performance than HCFA or sawdust alone: it has a satisfactory floating ability and allows total removal of oil. Addition of the polymer, however, has resulted in no significant amelioration of the oil sorption behaviour of HCFA, probably because no affinity between HCFA and polymer has been achieved.IntroductionCoal fly ash is a by-product of coal combustion in electric power plants, produced worldwide in huge quantities, approximately 500 million tones annually. High calcium fly ash (HCFA) is classified to class C presenting a (Al2O3 + SiO2 + Fe2O3) > 50%. The production of lignite fly ash in Greece comes up to 13 million tones annually, of which only 12% is used in construction applications, the other being landfilled [5, 6].Besides its limited application worldwide as a construction material, research is focusing on the development of new environmental applications, such as waste stabilisation and solidification, soil and water environmental improvement [9, 12]. For the application of fly ash in further environmental fields several chemical modifications have been applied, in order to improve its properties. Extensive research has been focused on the conversion of both coal and lignite fly ash to zeolite and its further application in environmental field, such as the uptake of inorganic (heavy metals and ammonium [8, 11]) or even organic compounds (methylene blue [15]) from waste water streams, or the use as molecular sieves, to adsorb water molecules, SO2 and NH3 from gas streams, due to the high cation exchange capacity and porosity of the produced zeolithic material. Furthermore, lignite fly ash has been combined with sodium silicate solution, prepared by treatment of rice husk ash, and tetrapropylammonium bromide, to synthesise hydrophobic zeolite ZSM-5 [4]."

Jan 1, 2008

By Qingyu Deng, Shiwei Ma, Wang Hua, Guibao Qiu

"The flow properties of the blast furnace slag bearing high TiO2 at high temperature like the viscocity may change a lot due to the formation of the carbonitride inside, causing serious problems on the separation between the metal and the slag. Therefore, the critical condition of the formation of Ti(C,N) in blast furnace is vital importance for the ironmaking process with iron ore bearing titania. In this study, the formation of Ti(C,N) in blast furnace and the influences of various factors on the Ti(C,N) formation are investigated by FactSage. It is found that the mass of Ti(C,N) would reach the maximum at 1480 oC, and the product is mainly TiN below 1620 oC, while it is mainly TiC above 1620oC. The order of the factors by the importance from strong to weak was: temperature, the content of TiO2 in slag, basicity of slag, the content of MgO and Al2O3.IntroductionThe titanium dioxide (TiO2) in iron ore bearing titania will be partly reduced by carbon to titanium carbonitride (Ti(C,N)) in blast furnace, causing serious problems on the separation between the metal and the slag because of the change of flow property. Therefore, the critical condition of the formation of Ti(C,N) in blast furnace is vital importance for the ironmaking process, especially for the smelting of iron ore bearing titania. Extensive experimental data in regard to the formation of Ti(C,N) has been reported in numerous papers[1-6]. However, only some discrete data can be obtained by experiment, and it is difficult to detect the mass of Ti(C,N) in slag. In addition, the experiment is difficult to be proceeded when the temperature is above 1600oC. Therefore, it is very difficult to make clear the critical condition of the formation of Ti(C,N) by experiment."

Jan 1, 2012

By John E. Litz

The Denver Process is a chemical/metallurgical process for treating radioactive or mixed wastes by extraction and concentration of the radioactive and/or hazardous component(s). The process was developed at bench scale, evaluated at pilot scale, and will be implemented at full scale to remediate a low-level radioactive sludge. Six unit operations comprise the process: feed handling, leaching, solvent extraction, electrodeposition, precipitation, and tailing preparation. Unit operation design may be modified to tailor the process for varying feed stock composition. Radioactive or mixed waste is reacted with aggressive reagents in an aqueous phase, solubilizing targeted components. These components are then selectively extracted and concentrated in subsequent steps. Waste solids and solution exit the process as non-hazardous non¬radioactive waste. Dehydration of aqueous waste by submerged combustion eliminates aqueous discharge.

Jan 1, 1994

By J. R. Goode

There are at least a dozen methods of selectively removing cerium from a mixture of the rare earth elements (REE) including separation techniques based on the oxidation of cerium to the quadrivalent state. Several of the oxidation processes have been operated on a commercial scale, others have been tested and in some cases are part of proposed flowsheets. In this paper, we describe and compare the various methods. We also present preliminary estimates of the costs of early Ce removal and discuss recovery and purity aspects of the options.

By Chang-Dong Li

Cadmium ingot and nickel powder were prepared by high-temperature distillation, solvent extraction and liquid phase reducing method with spent Cd-Ni batteries as raw material. The impacts of the temperature in the distilling stage, the concentration of H2SO4 in the leaching stage, the pH value in the extracting stage and the dosage of hydrazine in the reducing stage were discussed respectively. The as- prepared samples were characterized by the means of X-ray diffraction (XRD), scanning electron microscopy (SEM), atomic absorption spectrometry (AAS) and inductively coupled plasma-atomic emission spectrometry (ICP-AES). The results showed that the recovering efficiencies of Cd and Ni reach 99.5% and 99.3%, and the purities of Cd ingot and nickel powder were higher than 99.90% and 99.80%, respectively.

Jan 1, 2009

By C. O. Bounds

Management of emission control dust from electric? arc furnace (EAF) steelmaking as an RCRA-EPA listed hazardous waste places economic and environmental pressures on the steelmaking industry. Horsehead Resource Development Company, Inc. (HRD) serves the industry by recovering nonferrous metals from the dust in rotary kiln plants in Palmerton, PA and Chicago, IL, and has demonstrated the commercial viability of its patented coal-fired FLAME REACTOR Process. However, because of location and/or regulation, many steelmakers could be more economically served via on-site processing of its dust. Therefore, in 198-7, through a contract with the Gas Research Institute, HRD embarked on a program to develop a gas-fired reactor and test a prototype unit. The development program has successfully proven the environmental, technical and economic performance of the concept. Consistently high zinc, lead and cadmium recovery to an oxide concentrate as well as production of a nonhazardous, delistable slag have routinely been achieved. The gas-fired FLAME REACTOR field experiment results and the economic performance of on-site or smaller regional plants will be highlighted.

Jan 1, 1990

By M Kolbe

Co-Cu exhibits a metastable miscibility gap in the region of the undercooled melt. Specimens have been undercooled and solidified containerlessly into the metastable miscibility gap in an electromagnetic levitation facility (EML) and in drop tube (DT) experiments. Due to the high undercooling the velocity of the solidification front is very high and the microstructure is frozen in instantaneously. The microstructure of samples processed in the EML is influenced by the electromagnetic stirring due to the induction of electrical currents into the melt. A variety of microstructures has been observed. After undercooling below the binodal the liquid melt separates into the Co-rich L1-phase and the Cu-rich L2-phase. Two basic morphologies of the L1-phase can be observed, they can be attributed to the transition in dendrite growth from diffusionally and thermally controlled to only thermally controlled growth. Transient microstructures are observed after solidification in the vicinity of the binodal. Drop tube experiments, which lead to a rapid solidification of a distribution of droplets under reduced gravity conditions, in contrary allow for the observation of the early stages of demixing: the microstructure shows a homogeneous distribution of spherical particles of the minority phase in the droplets. The cooling rate of the droplets and its dependence on the droplet radius has been calculated. The solidification velocity as a function of undercooling has been measured in the EML for the composition Co-lB.Bat%Cu. The data are analysed in the framework of the LKTlBCT model with a velocity-dependent distribution coefficient as well as within a model of Galenko and Danilov using a kinetic growth coefficient of u=0.22 m/Ks.

Jan 1, 2002

By Guray Kaya

Boron minerals are widely employed in various fields such as ceramic, glass, cement, metallurgy, etc. Although boron deposits of the world are limited, the production level of boron-based products is continuously increased. Turkiye possesses approximately 73 % of total world boron resources. Etibor Kirka Borax Company of Turkiye produces tincal concentrates and borax pentahydrates. During such productions considerable amounts of concentration and derivation wastes appear. Having considered the increased rate of production it is quite obvious that the level of relevant wastes will also be raised. With this study it was aimed to utilize these wastes in roof tile and brick bodies and to convert them into a form environmentally and human friendly. Newly produced products were undergone to several standard tests for the determination of their shrinkage, water absorption, strength values and coloring parameters. Additionally, micro structural studies were conducted.

Jan 1, 2006

By Ram Avtar

High tensile thick plates (>80mm, weight ~3000 Kg) of medium carbon low alloy steel, when heat treated, manifested higher percentage of crystalline area (>20%) in fractured surface. Such problem was not encountered in thinner plates. The genesis of higher crystallinity in fracture was examined. It was observed that the thicker plate undergone slower rate (Average 0.9oC/Sec.) from soaking temperature to Ms temperature) of cooling after austenising during oil quenching and thereby quenched microstructure had upper bainites. During tempering of as quenched bainite, additional precipitation took place at the lath boundaries of bainite. This led to weakening of grain boundaries and aided easy crack propagation during fracture and resulted in formation of higher percentage of crystalline area in fractured surface. Enhancement in cooling rate (Average 1.8oC/Sec. from soaking temperature to Ms temperature) of austenised plate by switching over from oil quenching to water quenching practice resulted in complete transformation of austenite into martensite and produced ductile fracture (zero Crystallinity). Plates conformed improvement in mechanical properties between 2-5%.

Jan 1, 2009

By Z. Yang, R. W. Smith, Jr. Wharton

"Microorganisms have the ability to remarkably adsorb and/or absorb heavy metal ions. Hence they are being studied widely as a means of removing metal ions from aqueous solutions both in order to clean up toxic streams and to recover valuable metals from these and other streams. It is often difficult to harvest organisms such as bacteria and unicellular algae since they are usually too small to be readily screened out. Froth flotation may prove to be a feasible method to harvest such organisms subsequent to the ad/absortion of the metal Ions. The present paper discusses the surface/electrokinetic properties of microorganisms and the modifier-collect conditions under which they should float. The zeta potential of the green alga Chlorella vulgaris was measured in the presence of AI(III) and Pb(II) ions and in the presence of dodecylammonium chloride and sodium dodecylsulfate. Present and past data suggest that the organisms should behave similarly to other finely divided, charged (polar) solids with their behavior sometimes modified by the non-polar surface regions present.IntroductionThe overall field of bioengineering is growing at a remarkably accelerating rate. Hydrometallurgy and mineral processing are included among those disciplines where there has been actual or proposed commercial use of bioorganisms. Further, the actual or proposed use includes bacterial enhancement of leaching of a number of different types of ores (1-5), modification of the flotation or oil agglomeration separation of minerals by bacteria (6,7) and microorganism (algae, bacteria or fungi) concentration of metal ions present in effluent or other mineral processing or hydrometallurgy aqueous streams (8-23)."

Jan 1, 1988

By M. Olper, M. Maccagni

"The crude zinc oxides (CZO) produced in any thennal process dealing with EAF dust also contain lead, cadmium, and a considerable amount of halides (chlorides and fluorides). The high halide contents make these crude zinc oxides less and less attractive, both technically and economically, and a further refining procedure is nece'ssary to meet the zinc and zinc oxide market requirements.Hydrometallurgical techniques commercially used to dehalogenate the crude zinc oxides are not effective enough to upgrade the crude zinc oxides to the required specification for their direct use in the traditional sulphuric electrolysis by primary zinc producers.The EZINEX® PROCESS has solved the problem of the halides contained in the crude zinc oxides. This process is the only proven technology electrowinning zinc from a chloridebased electrolyte in a conventional cell house. This paper discusses the process economics taking the data from feasibility studies of different size commercial plants."

Jan 1, 2000

By Fuming Wang, Xin Lu, Hao Bai, Hebin Zhu

"In this study, CO2 emissions and carbon footprint of a typical steel works with integrated process and iron and steel industry in China was calculated and analyzed by a carbon footprint method based on the model of process CO2 emissions in iron and steel making. The carbon footprint of iron and steel industry from 1991 to 2010 in China showed a rapid increasing tendency. In 2008, the CO2 emissions of iron and steel industry in China was 1.289 billion tons, 19.71% of the national total CO2 emissions, and the corresponding carbon footprint was 159.13 million hm2 of green area. Carbon deficit of iron and steel industry also go up gradually if considering the carbon storage by green vegetation. Thus, the internal carbon reduction strategy, such as energy structure optimization and energy saving technology, was mainly encouraged for the sustainable development of iron and steel industry in China.IntroductionThe Global Warming resulting from the increase of Greenhouse Gases (GHGs), in particularly CO2, in the atmosphere has become the main reason of global climate change, and large emission reductions are required for sustainable development [ 1]. The iron and steel industry is the largest energy consuming manufacturing [2] in the world and the largest emitter of CO2 emissions. In 2005, it accounted for about 20% of global industrial energy use and 30% of energy and process CO2 emissions from industry [3]. In China, the crude steel has firmly been ranking at first of the world recent years and kept growing tendency year by year. With the production growth, the CO2 emissions of iron and steel industry also increased significantly and hence the steel industry has become one of the most sources of CO2 emission in China [4], which has attracted more and more attention to seek the carbon reduction strategies.Carbon footprint is an important and useful concept originating from Ecological Footprint, which was used efficiently to quantitatively analyze the impact of the human activities on ecological system, in particularly impact of the human energy activities [5]. In the view of Life Cycle, the carbon footprint is efficient to analyze the direct and indirect CO2 emission in the whole life of various products used in human activities. As to the iron and steel, the important materials and products in the human life, the carbon footprint analysis is quite necessary to evaluate the CO2 emission impact on the corresponding ecological system and global environmental."

Jan 1, 2013

By François Tremblay

It is well known that removal of organic material such ,as Jacquer, paint, plastic prior to melting improves aluminum recovery. In addition to being an important economically, decoating of aluminum scrap has a positive impact on the environment, through better control of gaseous emissions. Most of the existing thermal decoaters for aluminum have been designed to operate with scrap containing a level of organic material lower than 10%. The main field of their present application is for recycling of used aluminum can, where levels of organic material are lower than 4%. Alcan has recently developed a new thermal decoating system in order to extend applications of this process to a much wider variety of aluminum scrap. The new decoater efficiently processes aluminum scrap with a level of organic material up to 50%. This new technology features the use of fluidized bed technology to thermally control the process. This innovative feature improves both performance and control over conventional delacquering systems based on hot air convection. This paper describes the basic principles of the technology and the design of the? first industrial unit commissioned by the Alcan Recycling plant in Shelbyville (TN) at the beginning of 1994. Typical applications and operating advantages are discussed.

Jan 1, 1995

By Juan Daniel Martínez, Janaina Accordi Junkes, Dachamir Hotza, Tatiana Pineda

"The rice husk combustion in a bubbling and atmospheric fluidized bed reactor was investigated. The results showed the technical viability of producing both heat and amorphous silica from a renewable energy source. This paper presents the characterization of rice husk ash (RHA) obtained under varying fluidization velocities (0.13-0.15 m/s) and rice husk feed (4.5-7.2 kg/h). Characterization techniques include X-ray fluorescence, X-ray diffraction, particle size distribution and scanning electron microscopy. For the employed range of fluidization velocities of rice husk feed no noticeable influence on the chemical composition of produced RHA was observed. After combustion, RHA containing ~93% amorphous silica and <3% unburned char was obtained. RHA primary particles presented sizes from 90 to 100 µm and a tendency for agglomeration in aqueous media. Thus, the potential of this type of reactors with respect to speed, continuity and self-sufficiency energy of the process was shown.IntroductionDue to the increase of the agroindustrial production, the concern with processing by-products, such as rice husk (RH), is growing. For a better material and energy use, allowing a cleaner production and a more maintainable development, RH can be used as renewable fuel in the production plant, for instance, in steam generators. The adequate combustion of RH generates hot gases with low levels of pollutants, as carbon monoxide and particulate material.RH is the protecting coating formed during the growth of the rice grain, composed by four structural layers.1 The main components of the husk are cellulose and hemicelulose (50%) besides lignine (26%) and organic components (4%), as oils and proteins. The remaining amount includes inorganic materials (SiO2, Al2O3, K2O, Na2O, MgO, CaO, Fe2O3, MnO, P2O5).1The rice husk ash (RHA) is the product of the termochemical transformation of RH. The conditions of the different conversion processes (pyrolysis, gasification and/or combustion) determine the physical-chemical characteristics of the final product. RHA corresponds to 14 to 25% RH, depending on the variety of the rice, climate and soil of the producing area.2-4 The main component of RHA, which is generated at moderate combustion temperatures, is amorphous silica (SiO2) in the range from 80 to 97%.4,5"

Jan 1, 2008

By Yufeng Guo

Mineralogy and physico-chemical characteristics of a nickel hydrometallurgical residue and recovery of iron-bearing minerals by flocculation-magnetic separation were studied. The results show that the nickel residue is super-fine and fraction less than 0.045mm reaches 85.4%. Ferrous minerals are chiefly magnetite and ferruginous glass. Magnetite accounts for 31.7% and exists as free magnetite. Ferruginous glass is of multicomponent amorphous substances with low-iron grade but strong magnetism, and accounts for 39.9% of total iron minerals. Addition of flocculants increases granularity and magnetic force of fine iron-bearing particles and improves iron grade and recovery. The tests with flocculation separation show that a concentrate assaying 56.68% Fe with 81.72% recovery was obtained in a magnetic tube. A concentrate with 56.92% iron grade and 67.96% recovery was obtained by flocculation-magnetic separation with a magnetic cylinder.

Jan 1, 2006

By Zizheng Zhou

The separation of cobalt from other base metals can be achieved using diffusion dialysis in a two-compartment reactor separated by an anion exchange membrane. In this work, a Neosepta AFX membrane was used to study the separation of various metals in an acid-chloride solution. The separation of one metal from another was investigated on the basis of the various chloro-complex stabilities. The metals investigated included cobalt, nickel, copper(II), iron(III), aluminum, zinc and cadmium. The impact of several critical experimental conditions, including the initial metal and chloride concentration in the feed solution and their initial concentration in the receiving solution, on the separation factor and the metal transfer rate is reported in this work. Effective separation of different metal pairs was achieved under the experimental conditions.

By Alhondra de los Santos, Jesús L. Valenzuela, Jose R. Parga

"The present study evaluated the feasibility of using iron species generated by electrocoagulation (EC) as an adsorbent for removal As(III/As(V) from aqueous media. The full potential of EC was evident in that more than 99 percent of arsenic was removed without addition of chemical reagents. The adsorbent iron-species generated by EC was characterized by Chemical Analyses, X-Ray Diffraction and Scanning Electron Microscopy. The experimental data were correlated by employing a Langmuir adsorption isotherm. Thermodynamic parameters such as ?H o , ?S o and ?Go were calculated. The adsorption process was found to be exothermic and spontaneous.1. IntroductionArsenic contamination in potable water supplies is a serious health problem in many countries around the world. Groundwater arsenic contamination in La Comarca Lagunera Mexico was first reported 30 years ago [1]. Arsenic concentration has been found in well water from several communities ranging from 0.25 to 1.0 ppm. The elevated concentration of arsenic in water, above that originating from natural sources, has been attributed to the use of organoarsenical pesticides in the cotton fields and also to the millions of tons of waste slag generated at a local lead smelter [1]. The main arsenic species present in natural waters are arsenate ions 3- 4 AsO (oxidation state V) and arsenic ions H3AsO3, - 2 3 H AsO and 2- 3 HAsO oxidation state III). However, As(V) ions are most prevalent in oxygenated water while As(III) is found for anaerobic conditions, such as in well water or in groundwater. Conventional methods of arsenic removal rely on chemical-based treatment with lime, alum coagulation, iron coagulation and chemical oxidation. Other processes used with varying degrees of success include adsorption onto activated carbon, reverse osmosis, nanofiltration, manganese dioxide, magnetite and ionexchange resins [1-3]. These conventional processes generate a considerable quantity of secondary hazardous waste such as solid sludge, which also pose serious environmental problems. These drawbacks have forced various industries to search for effective, alternative treatment technologies for arsenic with a preference for electrochemical methods."

Jan 1, 2008

By Bruce Cavender

Managers are frequently faced with the decision to perform a task or manufacture an object in-house or to hire an outside vendor to perform the function. Outsourcing decisions are usually driven by economics: work is outsourced if it can be completed at a lower cost or in a shorter time than it can in-house. A technique termed incremental analysis can be used to make this decision. Incremental analysis examines the financial impact of outsourcing decisions as a function of the firm&apos;s fixed and variable operating costs. To use this tool, individual components of production cost are identified as being either constant or varying with levels of production activity. The assignment of cost type can be made in several ways: though analysis of historical operating data, understanding of individual expense types, and so forth. Changes in fixed and variable costs resulting from each potential course of action are explicitly identified to project the financial outcome of each alternative. The alternative having the greatest positive impact on profit is selected for implementation. By using the fixed- and variable-cost framework, the analysis is conceptually straightforward and substantially simplified. Production managers can therefore use incremental analysis as a tool for fast economically beneficial decisions on a real-time basis.

Jan 1, 1999