Custom design is needed for many aspects ofchemical reactors, most vessels, multistage separators such as fractionators, and other special equipment not amenable to complete standardization.
The optimal process variant profile using process variant 3 as the master process is complete standardization.
For the second reference point, we suggest using the process variant profile of complete standardization because the required values are comparatively easy to estimate.
In case of complete standardization, process quality and time equal (Q cdot left( {1 + s_{text{Q}} } right)) and (T cdot left( {1 - s_{T} } right)), respectively, and the Gini coefficient equals (G^{text{std}} = 1).
Whereas the optimal process variant profile in the basic scenario increases the risk-adjusted expected NPV by 21,018 EUR compared to the status quo, complete standardization against process variant 3 leads to an increase of 1,016,108 EUR.
To apply Anderson's (1994) model, we gathered the quality in the status quo (Q = 8) as well as the time (s T = 0.633) and quality (s Q = 0.125) effects of complete standardization.
For complete standardization, the process demand concentrates on the master process entirely, and the corresponding Gini coefficient is (G = 1) (if the master process fits all relevant process contexts).
However, while harmonization refers to processes that develop uniform standards across jurisdictions, regulatory convergence is a more pragmatic and feasible approach that better accommodates sovereignty and legal issues which make it difficult to achieve complete standardization across different economies.
Table 5 shows the values for the objective function and other relevant parameters for the best three process variant profiles as well as for complete standardization as a benchmark.
Therefore, we need the quality effect, defined as the relative increase in process quality (s_{text {Q}}), and the time effect, defined as the relative reduction of process time (s_{T}), in case of complete standardization compared to the status prior to BPS.
