steady state assumes that no variable changes with time whereas dynamic simulation takes time-varying variables into

consideration. What this will mean is that in steady state you are saying that everything that goes in comes out, you do not consider delay i.e the time it takes what is going in to come out. Such simulation will give you instantaneous magnitude of variables and can also show you change from one operating condition to another. What it cannot show you is how these variables behave over time and this the role of dynamic simulation. In summary, we can therefore put the difference between them as: Steady state simulation can be used to know what output you can get for different inputs. Dynamic simulation on the hand is used to know how an output will behave for a particular input over time and how a change from one input level to another can be responded to by the output in terms of time. The change could be conditions and not just input. In modelling, if you are using matlab for instance you will therefore expect to have differential equations for dynamic simulation and algebraic equations for steady state simulation. In both types of simulation, you need equipment sizes depending on the purposes of the simulation. If you are simulating an already existing process then you need the equipment sizes. If you doing a fresh design then you need to size the equipments yourself. Secondly, you will have to validate your model with actual plant operating information to be sure it makes any physical sense. Steady state validation data is obtained as instrument readings at different conditions. On the other hand, dynamic validation data is acquired over a time period say over an hour or 2 period. During your dynamic validation you will simulate your model over similar time frame. Finally,the approach do not rule out taking account of losses. It is up to you to choose to take account of losses or not. If you have information about losses either material or energy loss, then you can include it in your material and energy balance. Sometimes however the loss may be very small that it does make some sense to ignore it.Instrument capacity should naturally be part of your model. Take for instance you are doing a simple model across a tank, the material balance will look thus: V*d(rho)/dt = mass in - mass out. V is tank volume and rho is density. This is typically a dynamic model. For steady state model d(rho)/dt = 0 and therefore mass in = mass out. How you can improve your model is to bring in better process knowledge into the model. If you have enough actual plant data you can do that by better parametrization of the model. In which case parameter estimation techniques will be helpful. You can kill some assumptions and try to account for as much physical phenomena that is reasonable. If you do all that you should be fine. The only challenge with modelling in matlab is physical properties. Matlab do not physical property library. Software's that have physical property library may do better depending on what you are doing and will also be easier to work with. In matlab you will have to create subroutines to handle physical property calculations for you. Such subroutines may not be as good as widely validated and experienced commercial physical property databases that some soft wares come with.