In order to develop a CAD computer code system for centrifugal compressor, a numerical technique for design and flow analysis of vaned diffusers has been introduced in this paper. The design of diffusers has been performed by a streamline extension method. The velocity and pressure distributions at design and off-design operating modes have been calculated by a time-dependent finite difference scheme and have been corrected by boundary layer calculations. The numerical results are compared with experimental measurements, and the agreement is satisfactory.

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