Evaluation of Plant and Machineries: Case Study of PZ Nigeria.

T.J. Erinle1; O.K. Ukoba1; and O.M. Adesusi2

1

Engineering Materials Development Institute, Akure, Nigeria.

2
Federal University of Technology, Akure, Nigeria.
E-mail: authenticfaith@yahoo.com

ABSTRACT
Evaluation is the method of estimating the
present value of a property. The aims and
objectives of this valuation study are to determine
the present condition of a plant and machinery
after engineering tests and trials, review the past
operational and financial performance of the
plant, assess the probable remaining operational
life of the plant and machinery, determine the
actual useful life of the plant and machinery,
establish relationships between efficiency of plant
and maintenance practice/policy plan, and
estimate the realizable value of plant and
machinery based on replacement value concept.
(Keywords: evaluation, industrial plant, machinery,
Nigeria, performance)

INTRODUCTION
Until 1925 there was no specific statutory
provision for the rating of industrial plants and
machinery.
Despite this, it has been long
established that certain components of a plant
and its machinery are intended to remain on the
premises to make the premises fit for its
established purpose and are considered as part
of the property. This view was upheld by the
courts in a series of cases, including R vs. St.
Nicholas, Gloucester (1783), Tyne Boiler Works
Co. vs. Longbenton (1886), and Kirby vs.
Hunslent Union (1906). Tools and other items
such as stock in trade were not rateable.
In 1925, the position was formalized following the
report of the Shortt committee with the passing of
the Rating and Valuation Act. Section 24 and
Schedule 3 of the Act provided a list of classes of
plants. Class 1 rates all items of plant and
machinery listed in Table 1 of the regulations and
in paragraph 1 and 2 of the list of accessories are
only rateable if they are used for the handling,

The Pacific Journal of Science and Technology

http://www.akamaiuniversity.us/PJST.htm

preparing or storing of fuel required for the

generation of power. Power will include the
generation of steam power, electrical power,
pneumatic power, hydraulic power and any other
forms of motive power.
Class 2 deals with service plants and machinery
for:
Heating, cooling and ventilation;
Lighting;
Drainage;
Supplying water;
Protection from hazard.
For a plant to be rateable under class 2, it must
be:
named in class 2 and
used in connection with the provision of
the specific services listed in class 2 and
provides the services to the hereditament
is mainly or exclusively so used for that
purpose and
is not exempted by being used for
manufacturing or trade processes.
Class 3 deals with various types of infrastructure
on a property. It is divided into the following main
categories of plants and machinery:
railway train lines and their fixed
accessories;
lifts, elevators, hoist, escalators and
travelators;
cables for the conduct of electricity and
their accessories;
cables, fibers, wires and conductors for the
transmission of communication signals and
their associated equipment;
pipelines;
locks, dock gates and caissons.
(Source: www.books.google.com.ng/books)

54
Volume 12. Number 2. November 2011 (Fall)

RELEVANT THEORIES ON PLANT AND

MACHINERY VALUATION

value. Each combination of standard and premise

produces a different figure of value.

Often, the rent paid for a property will reflect the

value of items of rateable service type plant and
machinery. Analysis and therefore valuation can
be undertaken including theses items in the
2
values per m . Other types of plants will not
usually be included in a rent and will be shown
separately in a valuation usually valued by the
contractors basis of valuation. While shown as
separate items in the valuation, they must be
regarded as part of the property and not looked at
in isolation.

A premise of value when attached to a standard

of value in binary combination completes the
description of a transactional event. Use of a
premise of value to qualify a standard of value
also serves to cut down on the proliferation of the
number of separate standards of value.

In most cases, there is little rental evidence for

non-service plant and machinery and valuation is
undertaken using the contractors basis. The
capital cost of the item is ascertained and after
making appropriate adjustments, a percentage
applied to arrive at the rental value of the item.
Two approaches to a cost valuation can be used:
i.

The cost of new plant can be ascertained.

The cost should not only include the cost of
the plant but also the full cost of installation
together with any other associated work
(foundation etc.) from this amount the cost
any non-rateable element will have to be
deducted. The actual item being valued
may in reality not be new so some
adjustment may be needed for any
technical,
physical
and
economic
obsolescence of the item. The resultant
figure is then decapitalized at the statutory
decapitalization rate to arrive at the rental
value of item.
ii.

An alternative approach is to examine

second-hand costs of the item of similar
plant. Where this approach is adopted
again, it is the cost of the installed plant
that has to be considered. (source:
www.books.google.com.ng/books)

For plant and machinery (P&M) valuers, the

standard of value most used in descriptions of
value is market value. Yet market value by itself is
not sufficient as a descriptor of value because an
asset can be exchanged for money or monies
worth in several conceivable ways. Some of these
ways have been identified and collectively they
are known as premise of value. An asset will then
have several market values, equal in number to
the premises of value attached to the market
The Pacific Journal of Science and Technology
http://www.akamaiuniversity.us/PJST.htm

When the appropriate premise of value is dictated

by statutory or other regulatory mechanisms as in
rating and eminent domain valuations the premise
of value is fixed by law or regulation. Thus rating
valuation is in most jurisdictions premised on
rebus sic stantibus (as it is, not as it can be).
Eminent domain is often premised on some
arbitrary requirement like excluding development
potential. Apart from statutory and other
nonmarket valuations where the standards are
fixed, other determination of premise of value
requires close understanding of the asset and its
mode of sale.
For valuations that seek market value, the highest
and best use concept is the most potent in
pointing out what marketplace or level of trade the
exchange is best conducted. The marketplace
affects the price and may indicate the premise of
value. For example the sale- to- dealer market
gives lower prices than the dealer to-end -user
market. The former exchange may be described
as orderly liquidation value, while the latter
exchange may be described by market value with
the premise silent and understood by contextual
inference. The level of trade, on the other hand
distinguishes the fact that some assets are best
sold piecemeal, others are best sold as part of a
going concern. This time we have a clue as to
what is the best premise of value. If piecemeal,
then orderly liquidation value is indicated; if the
intention is to sell as part of a going concern, then
market value in continued use is the standard of
value. (source:www.ssrn.com/abstract=995203)

MATERIALS AND METHODS

Valuation Methodology
Data Generation: Data used for the valuation of
the Companys Plants were obtained from the
available records of the company, as presented in
subsequent section of this valuation report.
Relevant members of staff were also interviewed
and other useful information was also rendered,

55
Volume 12. Number 2. November 2011 (Fall)

were presented using tables, graphs and figures

in their appropriate forms.
The valuation study covers plants used in the
Toiletries Factory of the company. The Plants so
evaluated are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Ownership cost due to initial investment

in terms of EUAC decreases.

These cost factors usually cause the total EUAC

to decrease for some years and then increases.

Deionized Water Plant;

Silverson Batch Mixer;
Graco Jelly Pump;
Norden Pack Boxing Machine;
Marden Edward Overwrapping Machine;
Subnil Tube Filler;
Cartoning Machine;
Rotary Capping Machine;
Response Filler; and
Labeling Machine.

Analytical Tool:
1.

2.

Declining-Balance (DB) and Double

Declining-Balance (DDB) Depreciation
model was used to determine the
depreciable life of the plants based on the
companys depreciation policy.
Minimum-cost Life Analysis was used to
determine the economic life (actual useful
life) of the plants. This model is used to
determine the length of time that the plants
should be kept in service to minimize its
total cost with the time value of money.

Procedure, Processing and Analyzing Data

Economic Life: In determining the minimum-cost
life (Economic Life) n, then EUAC approach is
employed. Minimum-cost life n is the number of
years which yields a minimum annual cost.
EUACK = P(A/P, i%, K) SVK (A/F, i%, K)
+[ AOC, (P/F, i%, J)](A/P, i%, K).
To find the minimum-cost life, increase the life
value index k from 1 to the largest expected life
N, that is, k=1,2,.N. For each k, determine
the value of EUACK. With each passing year, the
following apply to an asset that is currently in
place:
-

Yearly cost of operation and maintenance

decreases;
Realizable market or salvage value
decreases;

The Pacific Journal of Science and Technology

http://www.akamaiuniversity.us/PJST.htm

Figure1: EUAC Curve.

In determining the economic life of mechanical

items, the point is that mechanical items become
less efficient and accumulate higher and higher
repair bills as they age. Conversely, the longer
they are kept in operation, the lower their average
annual capital cost (average first cost) will be
because the purchase price is spread over more
years. The sum of these two types of cost is the
total cost of providing the machine services. The
total lifetime cost continues to increase with age,
but average annual cost (total annual cost)
passes through a minimum.

Assumptions:
No inflation in cost of machinery/plant
throughout its economic life.
Interest rate i for use of capital is equal
to zero, i=0.
Annual utility and material cost have no
effect on increasing operation cost.
Salvage value of machinery/plant is
negligible.
Since the base operation cost could not
be obtained, the graph of annual
operation cost against age of plant
follows a linear pattern starting from the
origin.

56
Volume 12. Number 2. November 2011 (Fall)

For the fact that salvage value is

negligible and i=0, the Total Annual Cost
(TAC) model is given as:
(1)

Dt = (d)BVt-1

(5)

The book value in year t is:

BVt = B(1 d)

(6)

Therefore, Dt = (d)B(1 d)
(2)

By substituting Equation 2 into Equation 1:

(3)
Where:
TACn = total annual cost for n years of ownership.
AOCj = annual operating cost
through year j (j=1,2,.,n)
B = base amount of the gradient
G = amount of gradient
P = cost of purchase
Taking the derivative of Equation 3, an equation
for the optimum life value (Economic Life) n*
could be obtained.

t-1

(7)

Since the salvage value in declining-balance

methods does not go to zero, an implied SV after
n years may be computed as:
Implied SV = BVn = B(1 d)
SV = B(1 2/n)

(8)

Where
t = year (t = 1,2, ..,n)
Dt = annual depreciation charge
B = first cost or unadjusted basis (cost of
purchase)
SV = salvage value
n = expected depreciable life

PRESENTATION, ANALYSIS AND

INTERPRETATION OF DATA
In this chapter, the data are presented, analyzed
and interpreted as follows:
Table 1: Deionized Water Plant.

(4)

Depreciable Life/Realizable Value

In determining the depreciable life and realizable
value of the machinery/plant, the decliningbalance (DB) and double-declining-balance
(DDB) method is employed. This method is used
by multiplying a uniform percentage by the book
value (adjusted basis) at the beginning of that
year. The general model for calculating the
maximum DB rate dM is (dM = 2/n). This is rate
used for the DDB method. The actual
depreciation rate, relative to the unadjusted basis
B for year t is computed as:
dt = d(1 d)

t- 1

The depreciation Dt for year t is the uniform rate d

times the book value at the end of the previous
year, that is:
The Pacific Journal of Science and Technology
http://www.akamaiuniversity.us/PJST.htm

MANUFACTURES'S NAME
MANUFACTURER'S ADDRESS
DATE OF MANUFACTURE
DATE OF PURCHASE
COST OF PURCHASE
DATE OF MACHINE
INSTALLATION
MACHINE CAPACITY
FREQUENCY OF USE
FREQUENCY OF
MAINTENANCE
FREQUENCY OF BREAKDOWN
PREVIOUS PROBLEMS
REMEDIES/PARTS CHANGED
DATE OF LAST SERVICE
PRESENT CONDITION OF
MACHINE
MAINTENANCE PLAN
MAINTENANCE COST
AVAILABILITY OF SPARES
RECOMMENDED LUBRICANT
AVAILABILITY OF
MAINTENANCE RECORD

ELGA Process Water

High Street, Lane end, High
Wycombe Bucks, England.
18th June, 2004.
29th July,2004
60,000 (N12,900,000)
30th October, 2004.
2.25 m3/hr.
24 hours per day.
Weekly
Rarely breaks down.
No flow
Filter
6th February,2010
In service (Ok)
Not available
Readily available
Nil
Up to date

57
Volume 12. Number 2. November 2011 (Fall)

Economic Life of Deionized Water Plant

From Equation 4,

G =N128, 000
Therefore,
n* = 14 years

Realizable Value of Deionized Water Plant

SV = B(1 2/n)

If n* = n = t = 14 years, then SV = 12,900,000(1

14
2/14)
SV = N1,489,466.16

Table 2: Silverson Batch Mixer.

MANUFACTURES'S NAME
MANUFACTURES'S
ADDRESS
DATE OF MANUFACTURE
DATE OF PURCHASE
COST OF PURCHASE
DATE OF MACHINE
INSTALLATION
MACHINE CAPACITY
FREQUENCY OF USE
FREQUENCY OF
MAINTENANCE
FREQUENCY OF
BREAKDOWN
PREVIOUS PROBLEMS
REMEDIES/PARTS
CHANGED
DATE OF LAST SERVICE
PRESENT CONDITION OF
MACHINE
MAINTENANCE PLAN
MAINTENANCE COST
AVAILABILITY OF
SPARES
RECOMMENDED
LUBRICANT
AVAILABILITY OF
MAINTENANCE RECORD

Silverson Machines Limited

Waterside, Chesham, Bucks,
England.
19th June, 2006.
17th January, 2007.
25,000
22nd February, 2007.

Table 3: Graco Jelly Pump.

MANUFACTURR'S NAME
MANUFACTURER'S
ADDRESS
DATE OF MANUFACTURE
DATE OF PURCHASE
COST OF PURCHASE
DATE OF MACHINE
INSTALLATION
MACHINE CAPACITY
FREQUENCY OF USE
FREQUENCY OF
MAINTENANCE
FREQUENCY OF
BREAKDOWN
PREVIOUS PROBLEMS
REMEDIES/PARTS
CHANGED
DATE OF LAST SERVICE
PRESENT CONDITION OF
MACHINE
MAINTENANCE PLAN
MAINTENANCE COST
AVAILABILITY OF SPARES
RECOMMENDED
LUBRICANT
AVAILABILITY OF
MAINTENANCE RECORD

Graco Inc.
88-11th Avenue NE |
Minneapolis, Minnesota 55413
19th February, 2003.
8th June, 2006.
USD 200,000 (N35,000,000)
26th July, 2006.
24 hours per day.
Weekly
Often
Blockage
Wiper
23rd January, 2010.
In service (Ok)
Not available
Readily available
Grease
Up to date

Economic Life of Graco Jelly Pump

From Equation 4,

110 kilogram per hour

8 hours per day.
Weekly

G = N39,000

Not often.
Bad Bushing.
Blade
30th January, 2010.
In service (Ok)

Therefore,
n* = 42.4 years

Not available
Not available
Readily available

Realizable Value of Graco Jelly Pump

Grease

If n* = n = t = 47.4 years, then

42.4
SV = 35,000,000(1 2/42.4)

SV = B(1 2/n)

Up to date

The Pacific Journal of Science and Technology

http://www.akamaiuniversity.us/PJST.htm

SV = N4,505,491.55

58
Volume 12. Number 2. November 2011 (Fall)

Table 4: Nordenpack Boxing Machine.

MANUFACTURER'S NAME
MANUFACTURER'S
ADDRESS
DATE OF MANUFACTURE
DATE OF PURCHASE
COST OF PURCHASE
DATE OF MACHINE
INSTALLATION
MACHINE CAPACITY
FREQUENCY OF USE
FREQUENCY OF
MAINTENANCE
FREQUENCY OF
BREAKDOWN
PREVIOUS PROBLEMS
REMEDIES/PARTS
CHANGED
DATE OF LAST SERVICE
PRESENT CONDITION OF
MACHINE
MAINTENANCE PLAN
MAINTENANCE COST
AVAILABILITY OF SPARES
RECOMMENDED
LUBRICANT
AVAILABILITY OF
MAINTENANCE RECORD

Norden Packaging Machinery.

S-39128, Kalmer, Sweden.
2nd November, 1983.
27th July, 1984.
USD 150,000
23rd May, 1985.
60 cycles per minute.
8 hours per day.
Weekly
Often
Improper Boxing.
Suction Cup.
13th February, 2010.
In service (Ok)
Not available
Imported
Oil and grease
Up to date

Economic Life of Marden Edward

Overwrapping Machine
From Equation 4,

G = N165,714.29

Therefore,
n* = 30.83 years

Realizable Value of Marden Edward

Overwrapping Machine
SV = B(1 2/n)

If n* = n = t = 30.83 years, then SV =

30.83
78,750,000(1 2/30.83)
SV = N9, 949,573.39

The Pacific Journal of Science and Technology

http://www.akamaiuniversity.us/PJST.htm

Table 5: Marden Edwards Overwrapping

Machine.
MANUFACTURES'S NAME
MANUFACTURES'S
ADDRESS
DATE OF MANUFACTURE
DATE OF PURCHASE
COST OF PURCHASE
DATE OF MACHINE
INSTALLATION
MACHINE CAPACITY
FREQUENCY OF USE
FREQUENCY OF
MAINTENANCE
FREQUENCY OF
BREAKDOWN
PREVIOUS PROBLEMS
REMEDIES/PARTS
CHANGED
DATE OF LAST SERVICE
PRESENT CONDITION OF
MACHINE
MAINTENANCE PLAN
MAINTENANCE COST
AVAILABILITY OF SPARES
RECOMMENDED
LUBRICANT
AVAILABILITY OF
MAINTENANCE RECORD

Marden Edwards Limited.

2 Nimrod way, Ferdown
Industrial Estate, Wimborne,
Dorset U.K.
18th April, 2001.
3rd July, 2002.
USD 450,000 (N78,750,000)
10th October, 2002.
45 cycles per minute.
8 hours per day.
Weekly
Often
Improper Cutting of nylon.
Cutting blade.
13th February, 2010.
In service (Ok)
Not available
Imported
Oil and grease
Up to date

Table 6: Subnil Tube Filler.

MANUFACTURER'S NAME
MANUFACTURER'S
ADDRESS
DATE OF MANUFACTURE
DATE OF PURCHASE
COST OF PURCHASE
DATE OF MACHINE
INSTALLATION
MACHINE CAPACITY
FREQUENCY OF USE
FREQUENCY OF
MAINTENANCE
FREQUENCY OF
BREAKDOWN
PREVIOUS PROBLEMS
REMEDIES/PARTS
CHANGED
DATE OF LAST SERVICE
PRESENT CONDITION OF
MACHINE
MAINTENANCE PLAN
MAINTENANCE COST
AVAILABILITY OF SPARES
RECOMMENDED
LUBRICANT
AVAILABILITY OF
MAINTENANCE RECORD

Subnil Packaging Machines

PVT Limited.
Shed No. 37, Road No. 1, IDAMallapur Nacharam, India.
2nd March, 2003.
22nd May, 2003.
USD 1,500,000
17th July, 2003.
60 cycles per minute.
8 hours per day.
Weekly
Often
Bad tube sealing.
Sealing Jaw.
30th January, 2010.
In service (Ok)
Not available
Imported
Oil and grease
Up to date

59
Volume 12. Number 2. November 2011 (Fall)

Table 7: Cartoning Machine.

MANUFACTURER'S NAME
MANUFACTURER'S
ADDRESS
DATE OF MANUFACTURE
DATE OF PURCHASE
COST OF PURCHASE
DATE OF MACHINE
INSTALLATION
MACHINE CAPACITY
FREQUENCY OF USE
FREQUENCY OF
MAINTENANCE
FREQUENCY OF
BREAKDOWN
PREVIOUS PROBLEMS
REMEDIES/PARTS
CHANGED
DATE OF LAST SERVICE
PRESENT CONDITION OF
MACHINE
MAINTENANCE PLAN
MAINTENANCE COST
AVAILABILITY OF SPARES
RECOMMENDED
LUBRICANT
AVAILABILITY OF
MAINTENANCE RECORD

Pampac Machine PVT Limited.

Associated capsule group, 127
Kandi wali Industrial Estate,
Kandi wali, Bombay, India.
21st May, 2002.
18th June, 2004.
USD 800,000
2nd December, 2005.
80 cycles per minute.
8 hours per day.
Weekly

DATE OF MANUFACTURE
DATE OF PURCHASE
COST OF PURCHASE
DATE OF MACHINE
INSTALLATION
MACHINE CAPACITY
FREQUENCY OF USE
FREQUENCY OF
MAINTENANCE
FREQUENCY OF
BREAKDOWN
PREVIOUS PROBLEMS
REMEDIES/PARTS
CHANGED
DATE OF LAST SERVICE
PRESENT CONDITION OF
MACHINE
MAINTENANCE PLAN
MAINTENANCE COST
AVAILABILITY OF SPARES
RECOMMENDED
LUBRICANT
AVAILABILITY OF
MAINTENANCE RECORD

From Equation 4,

Therefore,

Often
Poor folding.
Folding plate.
13th February, 2010.
In service (Ok)
Not available
Imported
Oil and grease

Realizable Value of Rotary Capping Machine

SV = B(1 2/n)

If n* = n = t = 38.19 years, then SV =

38.19
26,250,000(1 2/38.19)
SV = N3,360,779.70

Up to date

Table 9: Response Filler.

Table 8: Rotary Capping Machine.

MANUFACTURER'S NAME
MANUFACTURER'S
ADDRESS

Economic Life of Rotary Capping Machine

Purdy Gravfil Limited.

Henwood Industrial Estate,
Hythe Road, Ashford Kent,
England.
4th February, 1991.
2nd May, 2000.
USD 150,000 (N26,250,000)
3rd May, 2000.
100 cycles per minute.
10 hours per day.
Weekly
Often
Poor capping.
Ejection rod.
23rd

January, 2010.
In service (Ok)
Not available
Available
Oil and grease
Up to date

The Pacific Journal of Science and Technology

http://www.akamaiuniversity.us/PJST.htm

MANUFACTURER'S
NAME
MANUFACTURER'S
ADDRESS
DATE OF MANUFACTURE
DATE OF PURCHASE
COST OF PURCHASE
DATE OF MACHINE
INSTALLATION
MACHINE CAPACITY
FREQUENCY OF USE
FREQUENCY OF
MAINTENANCE
FREQUENCY OF
BREAKDOWN
PREVIOUS PROBLEMS
REMEDIES/PARTS
CHANGED
DATE OF LAST SERVICE
PRESENT CONDITION OF
MACHINE
MAINTENANCE PLAN
MAINTENANCE COST
AVAILABILITY OF
SPARES
RECOMMENDED
LUBRICANT
AVAILABILITY OF
MAINTENANCE RECORD

Adelphi Group.
Olympus House, Mill green Road,
Haywards Health, U.K.
18th August, 2005.
20th September, 2006
USD 25,000 (N4,375,000)
3rd December, 2006.
45 cycles per minute.
8 hours per day.
Weekly
Often
Leakages.
Seal.
18th February, 2010.
In service (Ok)
Not available
Readily available.
Oil
Up to date

60
Volume 12. Number 2. November 2011 (Fall)

Economic Life of Response Filler

Economic Life of Labeling Machine

From Equation 4,

From Equation 4,

Therefore,

n* = 17.75years

Realizable Value of Response Filler

Realizable Value of Rotary Capping Machine

SV = B(1 2/n)

SV = B(1 2/n)

If n* = n = t = 40.50 years, then

40.50
SV = 4,375,000(1 2/40.50)

If n* = n = t = 38.19 years, then

17.75
SV = 2,625,000 (1 2/17.75)

SV = N562,198.08

SV = N314,326.04

Table 10: Labeling Machine.

MANUFACTURER'S NAME
MANUFACTURER'S
ADDRESS
DATE OF MANUFACTURE
DATE OF PURCHASE
COST OF PURCHASE
DATE OF MACHINE
INSTALLATION
MACHINE CAPACITY
FREQUENCY OF USE
FREQUENCY OF
MAINTENANCE
FREQUENCY OF
BREAKDOWN
PREVIOUS PROBLEMS
REMEDIES/PARTS
CHANGED
DATE OF LAST SERVICE
PRESENT CONDITION OF
MACHINE
MAINTENANCE PLAN
MAINTENANCE COST
AVAILABILITY OF
SPARES
RECOMMENDED
LUBRICANT
AVAILABILITY OF
MAINTENANCE RECORD

Harlard Machines System Limited.

2, Michigan Avenue, Salford,
Manchester, U.K.
17th July, 2006.
9th October, 2006.
USD 15,000 (N2,625,000)
12th November, 2006.
60 cycles per minute.
10 hours per day.
Weekly
Rarely
Label folding.
Label release roller.
18th

February, 2010.
In service (Ok)
Not available
Imported
Oil

Table 11: Summary of Economic Life, Realizable

Value of Machinery & Remaining Operational Life
Machinery

Economic
Life n*
(years)
approx.

Realizable
value
(naira N)

Probable
Remaining
Operational
Life (years)

Deionized
Water Plant
Silverson
Batch Mixer
Graco Jelly
Pump
Nordenpack
Boxing M/C
Marden
Edward
Overwrappi
ng M/C
Subnil Tube
Filler
Cartoning
M/C
Rotary
Capping
M/C
Response
Filler
Labelling
M/C

14

1,489,466.16

Present
Value of
Plant and
Machinery
(naira N)
5,966,878.38

42

4,505,491.55

32

28,794,586.62

31

9,949,573.39

24

49,374,725.13

38

3,360,779.70

28

15,286,862.15

41

562,198.08

38

3,765,479.68

18

314,326.04

15

1,843,621.40

Up to date

The Pacific Journal of Science and Technology

http://www.akamaiuniversity.us/PJST.htm

61
Volume 12. Number 2. November 2011 (Fall)

CONCLUSION
An evaluation of the case study plant and
machinery (PZ Nigeria) was successfully carried
out for the company.

Materials Development Institute, Akure, Nigeria.

He holds a B.Eng. degree in Mechanical
Engineering and currently doing his M.Eng. in
Mechanical
Engineering.
His
research
interests are in the areas of Design/Simulation,
Materials (Testing and synthesis), Corrosion and
Ergonomics.

REFERENCES
1.

http://www.nzjf.org/.../892E2739-7F34-4422-8BF983BDDCC9A0F6.pdf

2.

http://www.cavaluation.com/media/CAVQualificatio
ns2008.pdf

3.

http://www.budhbhatti.in/Valuation_of_Plant_and_
Machinery__Theory_and_Practice_.doc

4.

http://www.ivsc.org/pubs/exp_drafts/gn3plantequip.pdf

ABOUT THE AUTHORS

T.J. Erinle, is a Mechanical Engineer in the
Technical Department, Engineering Materials
Development Institute, Akure, Nigeria. He holds a
HND degree in Mechanical Engineering and
currently doing his PDG in Mechanical
Engineering. His research interests are in the
areas of Industrial Engineering.

O.M. Adesusi, is a Mechanical Engineer .He

holds a HND degree in Mechanical Engineering
and currently doing his PDG in Mechanical
Engineering. His research interests are in the
areas of Production Engineering.

SUGGESTED CITATION
Erinle, T.J., O.K. Ukoba, and O.M. Adesusi. 2011.
Evaluation of Plant and Machineries: Case Study
of PZ Nigeria. Pacific Journal of Science and
Technology. 12(2):54-62.
Pacific Journal of Science and Technology

O.K. Ukoba, is a Design and Simulation Engineer

in the Manufacturing Department, Engineering

The Pacific Journal of Science and Technology

http://www.akamaiuniversity.us/PJST.htm

62
Volume 12. Number 2. November 2011 (Fall)