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EPF 4803

PROCESS AND FOOD PLANT DESIGN


PROJECT

SEMESTER 1 2015/2016

PRODUCTION OF MARGARINE

GROUP 10

LECTURERS NAME

DR SITI MAZLINA BINTI MUSTAPA KAMAL

SUPERVISORS NAME

PROF. MADYA DR. NORASHIKIN ABDUL AZIZ

DR ANVARJON

NAME OF STUDENT: NORHAFIZA BINTI KAMAL

MATRIC NO: 170078


TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................................ i
LIST OF TABLES ........................................................................................................................................ v
LIST OF FIGURES .................................................................................................................................... vii
LIST OF ABBREVIATION ........................................................................................................................ viii
EXECUTIVE SUMMARY ........................................................................................................................... ix
CHAPTER 1
INTRODUCTION ....................................................................................................................................... 1
1.1 OVERVIEW ......................................................................................................................................... 1
1.1.1 Objectives................................................................................................................................... 2
1.2 OVERALL PROCESS DESCRIPTION...................................................................................................... 2
1.3 SCOPE OF INDIVIDUAL DESIGN WORK .............................................................................................. 4
CHAPTER 2
LITERATURE REVIEWS ............................................................................................................................. 5
2.1 USES OF THE PRODUCT ..................................................................................................................... 5
2.2 FEASIBILITY AND MARKET STUDY ..................................................................................................... 7
2.2.1 Characteristics of Margarine ...................................................................................................... 7
2.2.2 Market Study.............................................................................................................................. 9
2.3 PROCESS AND EQUIPMENT CONSIDERATION................................................................................. 13
2.3.1 Kneading Process of Pin Rotor Machine .................................................................................. 13
CHAPTER 3
MASS AND ENERGY BALANCE ............................................................................................................... 18
3.1 MASS BALANCE ............................................................................................................................... 18
3.1.1 Filling & Packaging ................................................................................................................... 20
3.1.2 Kneading .................................................................................................................................. 21
3.1.3 Crystallization........................................................................................................................... 22
3.1.4 Chilling...................................................................................................................................... 24
3.1.5 Pasteurization .......................................................................................................................... 25
3.1.6 Mixing & Emulsification ........................................................................................................... 27
3.1.7 Preparation of Fat Phase.......................................................................................................... 29
3.1.8 Preparation of Aqueous Phase ................................................................................................ 31
3.1.9 Palm Oil Storage ....................................................................................................................... 32
3.1.10 Palm Olein Oil Storage .......................................................................................................... 32
3.1.10 Palm Stearin Oil Storage ........................................................................................................ 33

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3.1.11 Soybean Oil Storage ............................................................................................................... 33
3.1.12 Summary Of Mass Balance .................................................................................................... 34
3.2 ENERGY BALANCE ........................................................................................................................... 35
3.2.1 Palm Oil Storage ....................................................................................................................... 36
3.2.2 Palm Olein Oil Storage ............................................................................................................. 37
3.2.3 Palm Stearin Oil Storage .......................................................................................................... 39
3.2.4 Soybean Oil Storage ................................................................................................................. 41
3.2.5 Preparation of Fat Phase.......................................................................................................... 43
3.2.6 Preparation Of Aqueous Phase ................................................................................................ 45
3.2.7 Mixing & Emulsification ........................................................................................................... 47
3.2.8 Pasteurization .......................................................................................................................... 49
3.2.9 Chilling...................................................................................................................................... 51
3.2.10 Crystallization......................................................................................................................... 53
3.2.11 Kneading ................................................................................................................................ 55
3.2.12 Summary Of Energy Balance .................................................................................................. 57
3.3 HEAT INTEGRATION ........................................................................................................................ 58
3.3.1 Pinch Analysis........................................................................................................................... 59
3.4 DETAILS PROCESS FLOW DIAGRAM ................................................................................................ 63
CHAPTER 4
DETAILS PROCESS ENGINEERING DESIGN ............................................................................................. 66
4.1 PROCESS CALCULATION .................................................................................................................. 66
4.1.1 Design calculation of pin rotor machine .................................................................................. 66
4.2 ASSUMPTION MADE AND JUSTIFICATION ...................................................................................... 72
4.3 SUMMARY ON PROCESS UNIT DESIGN ........................................................................................... 73
4.3.1 Design parameter..................................................................................................................... 73
4.3.2 Specification of selection of design ......................................................................................... 73
CHAPTER 5
MECHANICAL AND EQUIPMENT COSTING ............................................................................................ 74
5.1 DESIGN PROCEDURE AND BASIS ..................................................................................................... 74
5.1.1Pin rotor machine ..................................................................................................................... 74
5.2 MATERIAL OF CONSTRUCTION ....................................................................................................... 77
5.2.1 Pin rotor machine .................................................................................................................... 78
5.3 EQUIPMENT ITEM ........................................................................................................................... 80
5.3.1 Equipment of pin rotor machine.............................................................................................. 80

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5.3 ANALYSIS COSTING OF INDIVIDUAL PROCESS UNIT ....................................................................... 81
5.4 MECHANICAL DRAWING ................................................................................................................. 82
CHAPTER 6
PROCESS INTRUMENTATION AND CONTROL (PID) ............................................................................... 84
6.1 DESIGN OF PLANT CONTROL SYSTEM ............................................................................................. 85
6.1.1 Start-up procedure of pin rotor machine ................................................................................ 86
6.1.2 Shut-down procedure of pin rotor machine ............................................................................ 86
6.2 INDIVIDUAL AND OVERALL PID ....................................................................................................... 87
6.3 INDICATION OF CONTROL SYSTEM ................................................................................................. 91
6.3.1 Temperature Indicator (TI) ...................................................................................................... 91
6.3.2 Speed Indicating Controller (SIC) ............................................................................................. 91
6.4 LOCATION AND DESTINATION OF THE CONTROL EQUIPMENT AND MATERIAL BEING CONTROL 91
6.4.1 Temperature Indicator ............................................................................................................. 91
6.4.2 Speed indicating controller ...................................................................................................... 91
CHAPTER 7
SANITARY DESIGN OR CLEANING IN PLACE (CIP) AND SAFETY CONSIDERATION. ................................ 92
7.1 SANITARY DESIGN / CIP ................................................................................................................... 92
7.1.1Cleaning-In-Place (CIP) .............................................................................................................. 92
7.2 INDICATION OF SAFETY AND ENVIRONMENT ISSUES ..................................................................... 94
7.3 SAFETY EQUIPMENT........................................................................................................................ 96
7.4 HAZOP STUDY.................................................................................................................................. 97
7.4.1 Introduction ............................................................................................................................. 97
7.4.2 HAZOP Prerequisite.................................................................................................................. 97
7.4.3 HAZOP Terminology ................................................................................................................. 98
7.4.4 HAZOP Procedures ................................................................................................................. 100
7.4.5 HAZOP Analysis ...................................................................................................................... 101
7.5 MSDS (Materials Safety Data Sheet) ............................................................................................. 103
CHAPTER 8
PLANT LOCATION AND LAYOUT .......................................................................................................... 115
8.1 LOCATION...................................................................................................................................... 115
8.1.1 Westport, Port Klang, Selangor.............................................................................................. 116
8.2 PLANT LAYOUT .............................................................................................................................. 121
CHAPTER 9
WASTE TREAMENT .............................................................................................................................. 123

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9.1 WASTE TREATMENT PLANT .......................................................................................................... 123
9.1.1 Introduction ........................................................................................................................... 123
9.1.2 Wastewater treatment process description. ......................................................................... 125
9.2 PROCESS FLOW DIAGRAM OF WASTE TREATMENT ..................................................................... 127
CHAPTER 10
ECONOMIC EVALUATION .................................................................................................................... 129
10.3 OVERALL PLANT ECONOMIC ANALYSIS....................................................................................... 129
10.3.1 Capital Cost .......................................................................................................................... 129
10.3.2 Operating Costs/Manufacturing Costs ................................................................................ 133
10.3.3 Summary Of Costing ............................................................................................................ 138
10.3.4 Payback Period ..................................................................................................................... 139
10.4 INTERNAL RATE OF RETURN ....................................................................................................... 140
CHAPTER 11
REFERENCES ........................................................................................................................................ 141
CHAPTER 12
APPENDICES ........................................................................................................................................ 143

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LIST OF TABLES
Table 1: Ingredients Compositions of Soft Table Margarine 1
Table 2: Scope of individual design of margarine 4
Table 3: Difference among type of margarine 5
Table 4: Crystal Polymorphic Tendency of selected oils and fats 8
Table 5: Fatty acid Chain Length of several type of oils 8
Table 6: Market sizes: Retails volume (Tonnes) for kg per household 10
Table 7: Production of fats and oils products in Malaysia from 2013 to 2018 ('000 tonnes) 10
Table 8: Market demand in different brands of margarine in Malaysia (tonnes) 11
Table 9: Local distribution channels 11
Table 10: Variety of Brands and composition of margarine in Malaysia 12
Table 11: Recommended Processing Values for residence Time Through Crystallization Unit
Operation 15
Table 12: Stream flow in pin rotor machine (kg/hr) 21
Table 13: Stream flow in pin rotor machine (kg/yr) 21
Table 14 : Stream flow in scraped surface heat exchanger (cool) (kg/hr) 23
Table 15 Stream flow in pin rotor machine (kg/yr) 24
Table 16 Stream flow in scraped surface heat exchanger (cool) (kg/hr) 25
Table 17 Stream flow in pin rotor machine (kg/yr) 25
Table 18: Stream flow in scraped surface heat exchanger (heat) (kg/hr) 26
Table 19: Stream flow in pin rotor machine (kg/yr) 27
Table 20 Stream flow in mixing and emulsifying tank (kg/hr) 28
Table 21 Stream flow in pin rotor machine (kg/yr) 29
Table 22 Stream flow in fat phase mixing tank (kg/hr) 30
Table 23 Stream flow in fat phase mixing tank (kg/yr) 30
Table 24 Stream flow in aqueous phase mixing tank (kg/hr) 31
Table 25 Stream flow in aqueous phase mixing tank (kg/yr) 32
Table 26: Typical Stream Data 60
Table 27: Actual and Interval Temperature 60
Table 28 Ranked Order of Interval Temperature 61
Table 29: Problem Table 61
Table 30: Stream Flow Properties 64
Table 31: Design parameter of the pin rotor machine 73
Table 32: Specification for process design 73

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Table 33: Recommended processing for residence values 74
Table 34: Technical Sheet of Pin rotor machine 75
Table 35: Composition of stainless steel type 316 78
Table 36: Mechanical properties of 316 grade stainless steels. 78
Table 37: Typical physical properties for 316 grade stainless steels. 79
Table 38: HAZOP terminology 98
Table 39: Guide Words of HAZOP study 99
Table 40: HAZOP Study of kneading process 102
Table 41:The physicochemical characteristics of wastewater from vegetable oils industries
124
Table 42: Design Influent Values 124
Table 44: Labor cost 134
Table 45: Raw materials cost 136
Table 46: Packaging cost 136
Table 47: An overall cumulative cash flow of a margarine plant for 10 years 139

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LIST OF FIGURES

Figure 1:Process Block Diagram of Margarine Production 3


Figure 2: Configuration of flexible crystallization line 13
Figure 3: Cross section of Pin rotor machine 17
Figure 4: Pin Machine 17
Figure 5: Summary of mass balance 34
Figure 6: Summary of energy balance 57
Figure 7: Pinch analysis of margarine process 59
Figure 8: Process Flow Diagram for Margarine Production 63
Figure 9: Bending moment due to offset equipment 69
Figure 10: Schematic diagram of the pin machine. 76
Figure 11: Numerical analysis model for pin machine 76
Figure 12: Rotator shaft with 2 rows of pins. 80
Figure 13: Cross sectional of pin rotor machine 82
Figure 14: Front and side view of pin rotor machine 83
Figure 15: PID of pin rotor machine 87
Figure 16: PID of margarine process (Production line) 88
Figure 17: PID of margarine process (Heat integration line) 89
Figure 18: PID of margarine process (CIP line) 90
Figure 19: Procedure of HAZOP 100
Figure 20: P&ID with Node Marking for HAZOP Analysis 101
Figure 21: Three different section of Port Klang 116
Figure 22: Overview of Pulau Indah, Westport, Selangor 117
Figure 23: Distance from plant location to sources of raw materials. 119
Figure 24: Plant layout of the margarine plant 121
Figure 25: Process flow diagram of wastewater treatment of margarine plant. 127
Figure 26: Process of wastewater treatment of margarine plant. 128
Figure 27: Payback Period 140
Figure 28: Brochure of Pin rotor machine 144

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LIST OF ABBREVIATION

BOD Biochemical Oxygen Demand

COD Chemical Oxygen Demand

CIP Cleaning In Place

EHS General Environment, Health and Safety

FOG Fats, Oils and Grease

HACCP Hazard Analysis Critical Control Point

HAZOP Hazard and Operability

ISO International Organization for Standardization

JAKIM Jabatan Kemajuan Islam Malaysia

MSDS Material Safety Data Sheet

MUFA Monounsaturated Fatty Acids

PUFA Polyunsaturated Fatty Acids

PFD Process Flow Diagram

PID Proportional Integral Derivative

P&ID Process and Instrumentation Diagram

PPE Personnel Protective Equipment

PKFZ Port Klang Free Zone

SSHE Scraped Surface Heat Exchanger

TAG Triacylglycerol

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EXECUTIVE SUMMARY

This report presents the feasibility study for the margarine plant design in Malaysia.
The objectives of this plant design are to produce zero trans-fat margarine with desired
consistency, texture and spreadability for all ages of consumers and to generate high payback
with investment. The margarine produced in the margarine plant is 500g soft table margarine
in tub. Besides that, detailed process engineering design, mechanical design and sanitary
design are included in this report. After that, process instrumentation and control system is
designed and the safety of the equipment is considered by conducting HAZOP study. The
analysis and evaluation of the profitability, financial stability, market prospect and technical
design are also included in this report.

Margarine is one of the nutritious food product that give benefits to the consumer. Margarine
is a better choice than butter because of the vegetable fat-based and free trans-fat. Our
capacity of production is 1000kg/hr. We will focus on 500g of soft table margarine that are
suitable for spreading because of the texture and also properties of the margarine. Ingredient
used in this margarine production is consists of main ingredient and minor ingredient. For
main ingredients are palm oil, palm olein oil, palm stearin oil and soybean oil for fat phase.
For aqueous phase, water is the main ingredient. For minor ingredient are flavouring,
colouring, emulsifier, skimmed milk powder, water, vitamin E and stabilizer.

The process will begin from reception and storage of raw materials to a mixing process of fat
phase and aqueous phase then both phases will undergo mixing process. After mixing
process, the product will undergo emulsification process where the fat and water will
emulsified to become homogenous product. After that, the product will undergo
pasteurization process and then chilling process. Temperature of product will lowered due to
crystallization process and then kneading process will take place. Then, tempering process
and packaging process begin before shipping. Equipment used in this margarine production is
storage tank, mixing and emulsifying tank, scraped surface heat exchanger, pin rotor machine
and packaging machine.

Our economic feasibility of margarine plant with a total capital investment of


RM33,044,773.70 and annual operating cost of RM 48,417,319.70. Our annual revenue is
RM 82,087,000 estimated required a payback period of around 6 years before it comes to a
constant increase in profit gained and cash flow and IRR value is 74 % in 6 years.

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CHAPTER 1

INTRODUCTION

1.1 OVERVIEW

In the previous report, we already did with process description, process flow diagram, mass
transfer and plant location and layout and also others. In this report, we will focus on the
detailed design documentation for each of the group member. Each of the group members
need to further study about each of the process by providing a calculation, mechanical
drawing, equipment costing, process instrumentation and control, sanitary design, safety
consideration, waste treatment and economic evaluation. Besides, we need to make any
improvement of each of the process so that high quality of the margarine can be produced.
This report covers the overall process of margarine plant design which includes the margarine
formulation, unit operation, parameters, material balance and energy balance. The margarine
produced is soft table margarine with the following ingredients compositions:

Table 1: Ingredients Compositions of Soft Table Margarine

Ingredients Percentage (%)


Palm oil 16
Palm olein oil 32
Palm stearin oil 8
Soybean oil 24
Monoglyceride 0.3
Lecithin 0.5
Citric acid 0.2
Vitamin D 0.000007
Vitamin E 0.026993
Beta-carotene 0.002
Water 16
Salt 2.6
Skim milk powder 0.37
Potassium sorbate 0.001

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The margarine factory is operated in 24 hours, which are 3 shifts per day. The
workers and operators for each shift have to work for 8 hours, including the down time such
as cleaning section. The density of margarine is 956 kg/m3. With the plant capacity of 1000
kg/hr, the margarine plant will produce 1200 carton of ice cream everyday with 18 hours of
production and each carton contains 30 tubs of 500g margarine, thus producing up to 36000
tubs of margarine per day.

1.1.1 Objectives
The design objectives of the margarine plant include:
a) To produce zero trans-fat margarine with a capacity of 1000 kg/hour
b) To produce soft table margarine with desired consistency, texture and spreadability.
c) To generate high payback with investment

1.2 OVERALL PROCESS DESCRIPTION


Production of margarine basically involves several steps which are preparation of fat
and aqueous phase, mixing, pasteurization, chilling, crystallization, tempering and filling and
packaging. Process starts with mixing of fat materials and fat-soluble minor ingredients to
form a fat phase at 60-70oC. At the same time, water, skim milk powder and other water-
soluble minor ingredients will be mixed together to form aqueous phase at 40oC.

This process is then followed by mixing of fat phase and aqueous phase in a mixing
tank at 60oC. These processes are done at temperature above the melting points of the
ingredients to ensure all the ingredients melt and a homogenous ingredient mix is obtained.
Then, it will undergo pasteurization process in scraped surface heat exchanger (SSHE) at 75-
85 C for about 15 seconds. Pasteurization is a type of biological control for destruction of
pathogenic bacteria. By using this process, it is able to reduce the amount of spoilage
microorganism and thus extending the shelf life of the product.

After that, the pasteurized margarine is chilled by using ammonia as cooling media to
about 60oC to remove heat of pasteurization. The chilled product is then crystallized with the
condition of 17-22 C for 10-30 seconds with ammonia at (-10)-(-20)C. The crystallized
margarine is then kneaded in a pin rotor machine at 19C at 50-300 rpm for about 110-145
second and the product leaves at around 26oC. This process is to improve the plasticity of the
margarine and make sure that desired texture of margarine can be made.

2
After kneading process, filling and packaging process will take place where the
margarine is packed into 500g of soft tube margarine. Lastly, most important process is
tempering process at 5-7oC. Tempering process is to stabilize the texture and plasticity of the
product.

There are several processes and unit operations involved in the production of zero trans-fat
margarine:

Figure 1:Process Block Diagram of Margarine Production

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1.3 SCOPE OF INDIVIDUAL DESIGN WORK

There are 5 main process that will covered in the detailed design report which are mixing and
emulsification process of fat and aqueous phase, pasteurization process, chilling process,
crystallization process and lastly kneading process.

Table 2: Scope of individual design of margarine

NO. PERSON INCHARGE PROCESS EQUIPMENT INVOLVED

1. Nur Ayshah Binti Hj. Shaari Preparation of Mixing tank


aqueous and fat
phase.
2. Siti Nur Adibah Binti Hamzah Mixing and Mixing and emulsifying tank
emulsification
3. Liam Kok Weng Pasteurization Scraped surface heat
exchanger
4 Nur Nastasya Amiza Binti Zulkifli Crystallization Scraped surface heat
and chilling exchanger
5 Norhafiza Binti Kamal Kneading Pin rotor machine

I will focus on kneading process of margarine production. The kneading process is the
process where mechanical work provided to the product before tempering process. Purpose of
this process is to ensure the spreadability, plasticity and consistency of margarine is
produced.

4
CHAPTER 2

LITERATURE REVIEWS

2.1 USES OF THE PRODUCT

Nowadays, there are a variety of margarines that can be manufactured including


consumer margarine and industrial margarine types, shortening, vanaspati, recombined butter
and dairy blends. Consumer margarine includes all-purpose table margarine, soft table
margarine, reduced fat spreads, low fat spreads, very low fat spreads and specialty products.
Specialty products can be margarine containing flavors, spices or functional ingredients.

Table 3: Difference among type of margarine

Type of margarine Description

Table margarine It must contain a minimum fat content of 80% and maximum water
content of 16%. There are a number of different types such as soft/tub,
health/diet or high polyunsaturated fatty acid (PUFA), foil wrapped,
whipped and liquid/shortening. It is used for spreading, frying and baking.

Reduced fat margarine These spreads contain 60-70% of fat and can be used for spreading and in
most cases frying and baking.

Low fat margarine These spreads contain maximum of 40% fat and can be used for spreading
only.

Very low fat margarine These spreads contain only 3-25% of fat.

Table margarine can be divided into two types which are refrigerated and non-refrigerated.
Both margarines are spreadable at room temperature. Refrigerated margarine is either soft or
block type. The soft type margarine is spreadable straight away from the refrigerator and
should not suffer any oiling out.

5
The block type margarine should be sufficiently firm to retain its shape in packets.
Soft margarine is usually packed in plastic (polypropylene) tubs, sticks or blocks wrapped in
parchment, and the semi-solid type in cans. There are many different types of margarine on
the market nowadays. It might be confusing for the consumers to know which to purchase for
spreading, cooking or baking. Different types of margarine have different functions and uses
due to different ingredients, fat content and production parameters. For instance, traditional
stick margarine is usually used for spreading, melting, baking and sauting while regular tub
margarine is used for spreading, melting and sauting only. Regular tub margarine is not
recommended to be used in baking since it reduces the volume of baked product and thus the
cake and cookies rise less and have a tougher crumb. Light and low-fat margarine is only
suitable for spreading. It is also not suitable for baking as it results in poor products such as
the cookies become a bar cookies and the cake will be dense and have a compressed crumb.
One of the benefits of consuming margarine is to replace unhealthy butter.

Nowadays, most of the people are consuming too much of the unhealthy saturated fat
which comes mainly from animal products in our diets. There is a need to replace the
saturated fat with unsaturated fat to improve the cholesterol levels, which can help to reduce
the risk of heart diseases. Other than that, margarine provides us with the essential fats as
well as vitamins to complete a well-balanced diet. Fat is a major source of energy. It contains
9 calories (37 kilojoules) per gram, more than any other nutrient. The need for fat is
relatively high during childhood when increased energy is required for growth and
development. Some polyunsaturated fats are essential in our diets as they cannot be made by
the body, yet are crucial for the health of every body cell. Margarine is the major source of
these essential fatty acids. Furthermore, margarine is also an important source of vitamins A,
D and E and help in their absorption into the body

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2.2 FEASIBILITY AND MARKET STUDY

2.2.1 Characteristics of Margarine

The overall quality of margarine summarizes the characteristic of margarine in terms


of spreadability, texture and consistency, polymorphic behavior.

Spreadability is the ease with which the margarine can be applied in a thin and even
layer on bread. To produce a spreadable margarine, three conditions are necessary:
i. The two phase of liquid and solid oils must co-exist
ii. The solid crystals must be sufficiently finely dispersed throughout the entire
mass to be effectively held together in the crystal matrix by internal cohesive
force.
iii. The proper proportions of solid and liquid should be at certain temperature
and the crystals should melt at below body temperature.

Consistency is the measure of smoothness, evenness and plastic state in


margarine. It can range from very soft, like petroleum jelly, to soft, medium, firm, tough,
hard and brittle. The texture is a measure of the structure. It varies from smooth to mealy or
floury, grassy, granular or sandy and finally, coarse and lumpy. The consistency and texture
of margarine is dependent on the processing techniques and the oils and fats used in its
manufacture (Greenwell BA, 1981).
We aimed to produce margarine with better characteristics by using better raw
materials, equipment and operating parameters of the machine we used.

Polymorphic forms are the solid phases of the same chemical composition with
different crystalline structures but yields identical liquid phases on melting (Nawar WW,
1985). Polymorphs are the different forms of the solid state (Timms RE, 1994).
Polymorphism is the ability of triacylglycerol (TAG) molecules to exist in a number of
crystal forms (Talbot G, 1995). TAG molecules can crystallize in different polymorphs which
include sub-, , and . In spite of that, the fat crystals in margarine are only in and
forms (deMan JM, deMan L, 1995). In margarine, crystals are desired for a better product
with a smooth mouth-feel and better entrapment of oil because of the spherulitic structures
formed.

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Table 4: Crystal Polymorphic Tendency of selected oils and fats

crystals form crystals form


Cocoa butter Cottonseed oil
Soybean oil Palm oil
Corn oil Rapeseed oil
Coconut oil Tallow
Lard Milk fat
Sunflower oil

One of the factors that influence the polymorphism is the type of oils and fats used in
the production of margarine. To formulate blends with good crystal stability for margarine,
a range of fatty acid chain lengths should be present in the blend instead of having mainly
one type of TAG or closely similar TAGs (Peter JW, 1991).

This is because a pure TAG would be most stable in the form while a mixture of
TAGs will be most stable in the form. Therefore, different types of oils and fats are mixed
in order to produce the fat blends for the production of margarine.

Table 5: Fatty acid Chain Length of several type of oils

Fatty acid chain length Name Palm oil Palm olein oil Palm stearin oil Soybean oil
C12:0 Lauric acid 0.23 0.3 0.25 -
C14:0 Myristic acid 1.09 1.0 1.45 0.05
C16:0 Palmitic acid 44.02 39.8 62.2 10.25
C18:0 Stearic acid 4.54 4.4 5.0 4.45
C18:1 Oleic acid 39.15 42.2 24.8 22.09
C18:2 Linoleic acid 10.12 11.2 5.9 53.96
C18:3 Linolenic acid 0.37 0.4 0.3 8.30
C20:0 Arachidic 0.38 0.4 0.45 0.21
acid

8
2.2.2 Market Study

According to the research, population in Malaysia is estimated about 29.2 million


people in 2013. The population is expected to increase up to 31.3 million by 2017 and 32.4
million by 2020. In term of food demand in Malaysia, consumers tend to focus on healthier
food products due to the increasing trend of chronic disease. Moreover, due to higher
education level, Malaysian demanding on good quality of the food product which gives them
benefits in term of health. They will prefer food product that are healthier and low cost.

Then, as we already know that Malaysia is country that majority is muslim.


Consumers will tend to find food product that safe and have a halal certificate from JAKIM.
From analysis market watch of 2012, volume in 1000 tonnes of margarine production is
increasing from 10.3 to 10.6 in 2009 and 2010 respectively. The percentage of growth is
about 2.91%. In term of different brands of margarine, we can determine that Naturel brand
of margarine has the highest number in term of demand of consumers.

This is due to the composition of ingredient in the product and reasonable price. From
the previous report, naturel brands have fortified with vitamin A, D, and E. This is also
depending on the preference in term of taste and functional of the margarine itself.

In term of market size, margarine retail volume for household is increasing


throughout year. From the table 6, we can determine that from 112 kg per household in 2009
increase to 113.6 kg per household in 2014. This is due to the increasing demand of heathy
food products which they now prefer margarine rather than butter.

After that, the production of fats and oil industry in Malaysia is increasing due to the
sufficient supply of raw materials which mostly come from palm oil industry. From table 7,
we can determine that number of production of margarine is increasing from 6.8 tonnes to 7.2
tonnes in 2013 and 2018 respectively. From this analysis, we can determine that margarine
product has high demand in the future because of the properties of the margarine and a lot of
varieties of food can be made from margarine.

9
From the statistics in 2009, Malaysia is in third ranks in the world those exporting
margarine products. This is due to little growth of margarine industry in Malaysia. The
exporting margarine products are due to higher demand from the consumers which local
manufacturer cannot sustain the demand. In importing sector, margarine in Malaysia is still in
bottom rank. This is because margarine industry is still growth to sustain the local demand. In
the future, Malaysia will be one of the main importers of margarine products due to sufficient
raw materials which are palm oil.

Table 6: Market sizes: Retails volume (Tonnes) for kg per household

Year 2009 2010 2011 2012 2013 2014


Asia 12.0 12.6 13.3 14.0 14.5 14.9
Pacific
Malaysia 112.0 111.4 111.0 111.7 112.5 113.6

Table 7: Production of fats and oils products in Malaysia from 2013 to 2018 ('000 tonnes)

Product/Year 2013 2014 2015 2016 2017 2018


Butter 4.1 4.2 4.2 4.3 4.4 4.5
Cooking fats 1.9 1.9 1.9 2.0 2.0 2.0
Margarine 6.8 6.9 7.0 7.0 7.1 7.2
Olive oil 0.2 0.2 0.2 0.3 0.3 0.3
Spreadable 2.3 2.4 2.5 2.5 2.5 2.5
oils and fats

From table 8, most popular brand of margarine in Malaysia is naturel brand from Lam Soon
Group with demand market increasing from 5.6 to 7.5 tonnes throughout 5 years. This is
because of influences from the ingredient of the margarine itself. For naturel product, it has
less saturated fat than other products. As we know, Malaysian are more conscious about their
health and more prefer healthy food yet affordable. Moreover, marketing planning for the
brands also affected the number of customer. The company with the vigorous marketing
activity will have high demand from the customer. Least demand brand in Malaysia is anchor
brand.

10
Table 8: Market demand in different brands of margarine in Malaysia (tonnes)

Brands Company name 2009 2010 2011 2012 2013 2014


Naturel Lam Soon Group 5.6 6.5 6.8 7.1 7.3 7.5
Planta Unilever Group 2.4 2.4 2.4 2.4 2.5 2.5
Daisy Lam Soon Group 2.1 2.0 2.0 1.9 1.8 1.7
QBB Butter Producers 0.8 0.8 0.8 0.8 0.8 0.8
Cooperatives Federation Ltd.
Golden Ballantyne Foods Pty.Ltd 0.6 0.6 0.6 0.6 0.6 0.6
Churn
Anchor Fonterra Co-operative 0.5 0.5 0.5 0.5 0.5 0.5
Group.Ltd

Margarine products can be found in the different type of retailers in Malaysia. There a lot of
varieties of margarine that we can found in the retailers such as Giant, Carrefour, Tesco and
others markets. The margarine product is varies with their ingredient, prices, brands and
portion.

Table 9: Local distribution channels

Types Retailers
Hypermarkets Giant, Carrefour, Tesco, Mydin, Econsave
Supermarkets Jucso,The Store

From the comparison below, the prices and nutritional contents in margarine are different
depending on their brands. This is because every company may use different type of process,
raw materials and equipment to produce their margarine. For example, Planta margarine used
palm oil and palm kernel oil as their main materials. For Vitalite margarine, sunflower oil and
vegetables oil are main raw materials. From their nutritional content, we can determine that
they have slightly different in term of calories value and also fat contents in every 240g.
Adding fortified vitamins can increase nutritional value in the margarine.

11
Table 10: Variety of Brands and composition of margarine in Malaysia

Margarine Prices kCal Fat Trans Saturated PUFA MUFA Sodium Oils and added nutrient
type (240g) (per10 (g) Fat (g) Fat (g) (g) (g) (mg)
g)
Daisy RM5.19 74 8.2 0 4.6 0.8 2.8 90 Palm oil, palm kernel oil, sunflower oil,
fortified with 9 vitamins.

Planta RM4.55 74 8.2 0.1 4.9 0.5 2.3 78 Palm oil, palm kernel oil, fully hydrogenated
palm stearin, fortified with 9 vitamins

Vitalite RM8.49 68 7.5 0 1.75 0 0 80 Sunflower oil, vegetables oil, fortified with
vitamins A and D

Naturel RM6.39 74 8.2 0 1.6 2.4 4.2 40 Rapeseed oil, palm fraction, sunflower oil,
reduced salt fortified with vitamins A,D, and E.

Adela RM4.25 75 8 0 5 1 3 70 Palm oil, fortified with vitamins A and D.

** MUFAs are monounsaturated fatty acids and PUFAs are polyunsaturated fatty acid

12
2.3 PROCESS AND EQUIPMENT CONSIDERATION

2.3.1 Kneading Process of Pin Rotor Machine

In this report, we will focus on kneading process by using pin rotor machine.
Kneading process is a process to assist the promotion of plasticity and softness of the
product. This process is one of the important processes where it will affect the
characteristic of the final margarine product.

Certain time and intensity is needed during kneading process to form a three-
dimensional network which is the plastic structure containing primary and secondary
bonds. During mechanical treatment, primary bonds known as the strongest and not-
readily established to be broken while secondary bonds known as weakest and readily re-
established. Therefore, the process will produce energy and heat up the margarine
product from 19 to 26 . So, sufficient mechanical treatment is needed to break the
primary bonds of the product to produce high plasticity of margarine by applying
kneading process through pin rotor machine.

Figure 2: Configuration of flexible crystallization line (Y.H.Hui, 2007)

13
In this study, we are producing soft table margarine where crystallization lines are
operated at full capacity. The capacity of the product will be determine by cooling
surface of SSHE. For example, if SSHE designed to produce 3000 kg/h of margarine,
volume of pin rotor machine will be 3-4% of the throughput by using a rule of thumb
which mean volume of the pin rotor machine about 90-120 L. Besides, the volume of the
pin rotor machine is depending on the type of margarine.

After product entering the SSHE, it will transfer to pin rotor machine and
kneading process occur. In this process, promotion of secondary nucleation occurs along
with the plastic secondary bonds occurs. Besides, rise in temperature occurs due to
release of heat of crystallization and mechanical heat from 19 to 26. Applying pin rotor
machine at the end of the crystallization process can produce soft table margarine. This
process ensures that uniform product is produced and preventing product from becoming
brittle due to the excess heat of the crystallization.

Factors that influence the characteristic of the margarine in crystallization process


are the processing parameters such as residence time in SSHE and pin rotor machine.
From table 11, we can determine the accurate residence time, capacity and time duration
of the pin rotor machine. Other factors that affects the characteristics of the margarine are
SFC profile for the blend are applicable with correct amount of the emulsifier and
accurate configuration of the crystallization plant.

In pin rotor machine, margarine undergoes shear forces for homogeneity of the
product. Thus, good quality of product can be produced. The shear forces can give
margarine more consistency and stability as it also affected the crystallization rate and
size of crystal. Formation of crystals from crystal can be done by shearing process.
Formation of the crystal is depending on the shear rates, if high shear rate, the
transformation will faster. Shear has also an influence on the water droplet size
distribution of the margarine.

14
The shell formation around the water droplets is more pronounced and smaller
crystals that are induced by shear can better adjust and adhere to the water droplet surface
(Verstraete, 2011). If pin rotor machine was used overwork, the structure of the
margarine will not good as it will be too compact and reduce in mobility of the crystals.
The product will become brittle. But, when less mechanical is applied on the margarine,
the product will undergo post hardening which resulting in hard and brittles products.

Table 11: Recommended Processing Values for residence Time Through Crystallization
Unit Operation (Gerstenberg 2002,2004)

Product Pin rotor machine Capacity Time


(% volume/time) (%) duration (s)

Puff pastry margarine 5-6 40-70 60-180

Cake and cream margarine 1-4 90-110 145

Table margarine 1-2 100 36-72

Soft table margarine 3-4 100-110 110-145

Low fat spreads 3-4 50-90 110-145

2.3.1.1 Pin Rotor Machine

Formerly in 1936, main function of the kneading process is cooled down the
margarine product by using rotary cooling drum or in a jet of cool water. The substances
or margarine product will become more homogenously and acquires a suitable
consistency depending on the type of product produce. Before having a modern machine
and new technology, kneading process were done by using open kneading machine which
consist of kneader worm or kneader rollers. The disadvantages of this machine is it a not
continuous operation and it also have a problem with the hygienic of the product.

15
Due to demanding a hygienic operation during the process, a fully and partially closed
kneading machine was introduced. This type of machine will fulfil the requirement of
hygiene and continuous operation. This type of machine also has disadvantages on the
quality of the product where the operation tends to collect air during the process. Large
quantity of air will entering the machine and adhering to the loose product resulting in a
lot of fine bubble formed in the product which can spoiled the product and discoloured
product produced.

After that, kneading under vacuum method was introduced to prevent any air
entering the product by having a closed chamber. However, this type of method is
complicated and expensive due to the additional work performed in this method. The
kneading process will carried out in the closed chamber where it exposed to partial
vacuum for about 2 or 5 minutes. Then, the product will take out from the chamber
manually.

Nowadays, new technology has been introduced to produce high quality of


product. Kneading machine or we called it as pin rotor machine is used for manufacturer
of margarine to produce high consistency, spreadability and also plasticity of product. Pin
rotor machine consist of a cylinders that can be mount on a common base frame. We can
save floor space with this type of design and easy to operate.

Pin rotor machine component consist of cylinder part, shaft and pin part. Every
component has different function and dimensions to provide a good mechanical work
during processing. The pin rotor machine can be operated by using an electrical power
that provided by using a motor at the end of the machine. Advantages of pin rotor
machine are manufacturer can change or adjust the level of intensity and time duration of
the kneading process. Besides, changing type of oils can be done when using pin rotor
machine. With this advantage, different type of oil can be used depending on the
availability of the sources.

From this property, wide range of margarine product can be produced under various
pressure and speeds resulting in high quality product. In term of hygienic, pin rotor
machine are designed according to the standard.

16
All parts of the machine are made from AISI 316 stainless steel and all the product seals
are in sanitary design. From the figure below, pin rotor machine generally cylindrical
vessel with fixed rows of pin inner wall inside the cylinder and have a rotor which is
fitted with rows of pin. How the pin rotor machine works? By rotated the shaft of the
machine and they will simultaneously move between rows of pins on the rotor and also
rows of pin on the inner wall of cylinder. This will produce a mechanical work to break
the primary bonds of crystal structure that already developed from crystallization process.

Figure 3: Cross section of Pin rotor machine (G.Hoffmann, 1989)

Figure 4: Pin Machine (Hiroshi Ito & Yoshiyuki Shimizu, 2009)

17
CHAPTER 3

MASS AND ENERGY BALANCE

3.1 MASS BALANCE

After knowing the formulation for the margarine, we have to use mass balance to
determine the amount of ingredients required to produce margarine that meets our plant
capacity. The mass balance also makes it easier to calculate the cost needed for buying
the ingredients used for the margarine production each year.
Mass balance is one of the fundamental laws of physics which states that mass
can neither be produced nor destroyed or in other words that the mass is conserved. A
mass balance is an accounting of mass entering and leaving a system. This principle of
conservation of mass can be applied to entire process or any unit operation. Whatever its
nature, the input flow streams is always balanced with the output flow streams.

This principle of conservation of mass is extremely useful and important in food


industry. Mass balance is fundamental to the control of processing, particularly in the
control of yields of the products.

The law of conservation of mass is given as:

Input = Output

If the process is steady state, there is no accumulation of mass within the process. Thus

When applying the above equation to a process, it is best to write:

Mass entering via feed streams = Mass exiting via product streams

When there is waste generated in a process, the equation is written as:

Mass in = Mass out + Waste generated


I. DENSITY

18
100
Density, = % Fat % Solid % Water
Mix Density Equation: + +
0.93 kg/L 1.58 kg/L 1.0 kg/L

Ingredient mix contains 80% Fat, 4% Solid and 16% Water.

100
Density, = 80 4 16
+ +
100 1.58 1.0

= 0.956 kg/L

Assumptions:

1. Density of margarine ingredient mix from mixing to pasteurization process used


is 956 kg/m3.
2. Density of final margarine produced used is 956 kg/m3.

II. MASS BALANCE CALCULATION OF EACH PROCESS

Assumptions:

1. All processes including preparation of fat phase, preparation of aqueous phase,


mixing & emulsification, pasteurization, chilling, crystallization and kneading are
assumed to produce 0.5% waste due to imperfect removal of ingredients to the
next operation.
2. Storage of palm oil, palm olein oil, palm stearin oil and soybean oil is assumed to
produce zero waste.
3. The mass balance is calculated when the process of margarine production starts
and thus it is assumed to be a continuous process in which flow rate of ingredients
entering each process is the same as the flow rate of products and waste leaving.
4. The mass balance is reversed calculated from the product up to the raw
ingredients required as the orders taken are normally based on capacity.
5. The mass balance is practiced to obtain the production of margarine per hour and
per year.

19
3.1.1 Filling & Packaging

Capacity = 18000 kg/day

Mass flow per hour = 1000 kg/hour

18000 kg 1 hour
Total operating hour per day = 1000 kg
1 day

= 18 hour/day

18000 kg 300 day


Total margarine produced per year =
1 day 1 year

= 5400000 kg/year

18000 kg 1 tub
Total tub of margarine produced per day = 0.5 kg
1 day

= 36000 tub/day

36000 tub 1 carton


Total carton of margarine produced per day =
1 day 30 tub

= 1200 carton/day

20
3.1.2 Kneading
Feed

Pin rotor machine


0.5% Waste

Product

Total feed entering pin rotor machine = 1005.03 kg/hr

Total waste generated from pin rotor machine = 5.03 kg/hr

Total product leaving pin rotor machine = 1000 kg/hr

Table 12: Stream flow in pin rotor machine (kg/hr)

Components Percentage (%) Stream flow in pin rotor machine (kg/hr)


Entering as feed Leaving as product Leaving as waste
Palm oil 16 160.804 160 0.80402
Palm olein oil 32 321.608 320 1.60804
Palm stearin oil 8 80.40201 80 0.40201
Soybean oil 24 241.206 240 1.20603
Monoglyceride 0.3 3.015075 3 0.015075
Lecithin 0.5 5.025126 5 0.025126
Citric acid 0.2 2.01005 2 0.01005
Vitamin D 0.000007 7.04E-05 0.00007 3.52E-07
Vitamin E 0.026993 0.271286 0.26993 0.001356
Beta-carotene 0.002 0.020101 0.02 0.000101
Water 16 160.804 160 0.80402
Salt 2.6 26.13065 26 0.130653
Skim milk powder 0.37 3.718593 3.7 0.018593
Potassium sorbate 0.001 0.01005 0.01 5.03E-05

21
Table 13: Stream flow in pin rotor machine (kg/yr)

Components Percentage (%) Stream flow in pin rotor machine (kg/yr)


Entering as feed Leaving as product Leaving as waste
Palm oil 16 868341.71 864000 4341.709
Palm olein oil 32 1736683.4 1728000 8683.417
Palm stearin oil 8 434170.85 432000 2170.854
Soybean oil 24 1302512.6 1296000 6512.563
Monoglyceride 0.3 16281.407 16200 81.40704
Lecithin 0.5 27135.678 27000 135.6784
Citric acid 0.2 10854.271 10800 54.27136
Vitamin D 0.000007 3.799E-01 0.378 0.001899
Vitamin E 0.026993 1464.9467 1457.622 7.324734
Beta-carotene 0.002 108.54271 108 0.542714
Water 16 868341.71 864000 4341.709
Salt 2.6 141105.53 140400 705.5276
Skim milk powder 0.37 20080.402 19980 100.402
Potassium sorbate 0.001 54.271357 54 0.271357

22
3.1.3 Crystallization
Feed

Scraped surface heat exchanger (cool) 0.5% Waste

Product

Total feed entering scraped surface heat exchanger (cool) = 1010.08 kg/hr

Total waste generated from scraped surface heat exchanger (cool) = 5.05 kg/hr

Total product leaving scraped surface heat exchanger (cool) = 1005.03 kg/hr

Table 14 : Stream flow in scraped surface heat exchanger (cool) (kg/hr)

Stream flow in scraped surface heat exchanger (cool) (kg/hr)


Components Percentage (%)
Entering as feed Leaving as product Leaving as waste
Palm oil 16 161.6121 160.804 0.80806
Palm olein oil 32 323.2242 321.608 1.616121
Palm stearin oil 8 80.80604 80.40201 0.40403
Soybean oil 24 242.4181 241.206 1.212091
Monoglyceride 0.3 3.030227 3.015075 0.015151
Lecithin 0.5 5.050378 5.025126 0.025252
Citric acid 0.2 2.020151 2.01005 0.010101
Vitamin D 0.000007 7.07E-05 7.04E-05 3.54E-07
Vitamin E 0.026993 0.27265 0.271286 0.001363
Beta-carotene 0.002 0.020202 0.020101 0.000101
Water 16 161.6121 160.804 0.80806
Salt 2.6 26.26196 26.13065 0.13131
Skim milk powder 0.37 3.737279 3.718593 0.018686
Potassium sorbate 0.001 0.010101 0.01005 5.05E-05

23
Table 15 Stream flow in pin rotor machine (kg/yr)

Components Percentage (%) Stream flow in pin rotor machine (kg/yr)


Entering as feed Leaving as product Leaving as waste
Palm oil 16 872705.23 868341.7 4363.526
Palm olein oil 32 1745410.5 1736683 8727.052
Palm stearin oil 8 436352.62 434170.9 2181.763
Soybean oil 24 1309057.9 1302513 6545.289
Monoglyceride 0.3 16363.223 16281.41 81.81612
Lecithin 0.5 27272.039 27135.68 136.3602
Citric acid 0.2 10908.815 10854.27 54.54408
Vitamin D 0.000007 0.3818085 0.379899 0.001909
Vitamin E 0.026993 1472.3083 1464.947 7.361541
Beta-carotene 0.002 109.08815 108.5427 0.545441
Water 16 872705.23 868341.7 4363.526
Salt 2.6 141814.6 141105.5 709.073
Skim milk powder 0.37 20181.309 20080.4 100.9065
Potassium sorbate 0.001 54.544077 54.27136 0.27272

3.1.4 Chilling
Feed

Scraped surface heat exchanger (cool) 0.5% Waste

Product
Total feed entering scraped surface heat exchanger (cool) = 1015.15 kg/hr

Total waste generated from scraped surface heat exchanger (cool) = 5.07 kg/hr

Total product leaving scraped surface heat exchanger (cool) = 1010.08 kg/hr

24
Table 16 Stream flow in scraped surface heat exchanger (cool) (kg/hr)

Stream flow in scraped surface heat exchanger (cool) (kg/hr)


Components Percentage (%)
Entering as feed Leaving as product Leaving as waste
Palm oil 16 162.4242 161.6121 0.812121
Palm olein oil 32 324.8484 323.2242 1.624242
Palm stearin oil 8 81.2121 80.80604 0.406061
Soybean oil 24 243.6363 242.4181 1.218182
Monoglyceride 0.3 3.045454 3.030227 0.015227
Lecithin 0.5 5.075756 5.050378 0.025379
Citric acid 0.2 2.030303 2.020151 0.010152
Vitamin D 0.000007 7.11E-05 7.07E-05 3.55E-07
Vitamin E 0.026993 0.27402 0.27265 0.00137
Beta-carotene 0.002 0.020303 0.020202 0.000102
Water 16 162.4242 161.6121 0.812121
Salt 2.6 26.39393 26.26196 0.13197
Skim milk powder 0.37 3.75606 3.737279 0.01878
Potassium sorbate 0.001 0.010152 0.010101 5.08E-05

Table 17 Stream flow in pin rotor machine (kg/yr)

Components Percentage (%) Stream flow in pin rotor machine (kg/yr)


Entering as feed Leaving as product Leaving as waste
Palm oil 16 877090.69 872705.2 4385.453
Palm olein oil 32 1754181.4 1745410 8770.907
Palm stearin oil 8 438545.34 436352.6 2192.727
Soybean oil 24 1315636 1309058 6578.18
Monoglyceride 0.3 16445.45 16363.22 82.22725
Lecithin 0.5 27409.084 27272.04 137.0454
Citric acid 0.2 10963.634 10908.82 54.81817
Vitamin D 0.000007 0.3837272 0.381809 0.001919
Vitamin E 0.026993 1479.7068 1472.308 7.398534
Beta-carotene 0.002 109.63634 109.0882 0.548182
Water 16 877090.69 872705.2 4385.453
Salt 2.6 142527.24 141814.6 712.6362
Skim milk powder 0.37 20282.722 20181.31 101.4136
Potassium sorbate 0.001 54.818168 54.54408 0.274091

25
3.1.5 Pasteurization

Feed

Scraped surface heat exchanger (heat)


0.5% Waste

Product

Total feed entering scraped surface heat exchanger (heat) = 1020.25 kg/hr

Total waste generated from scraped surface heat exchanger (heat) = 5.10 kg/hr

Total product leaving scraped surface heat exchanger (heat) = 1015.15 kg/hr

Table 18: Stream flow in scraped surface heat exchanger (heat) (kg/hr)

Stream flow in scraped surface heat exchanger (heat) (kg/hr)


Components Percentage (%)
Entering as feed Leaving as product Leaving as waste
Palm oil 16 163.2404 162.4242 0.816202
Palm olein oil 32 326.4808 324.8484 1.632404
Palm stearin oil 8 81.6202 81.2121 0.408101
Soybean oil 24 244.8606 243.6363 1.224303
Monoglyceride 0.3 3.060758 3.045454 0.015304
Lecithin 0.5 5.101263 5.075756 0.025506
Citric acid 0.2 2.040505 2.030303 0.010203
Vitamin D 0.000007 7.14E-05 7.11E-05 3.57E-07
Vitamin E 0.026993 0.275397 0.27402 0.001377
Beta-carotene 0.002 0.020405 0.020303 0.000102
Water 16 163.2404 162.4242 0.816202
Salt 2.6 26.52657 26.39393 0.132633
Skim milk powder 0.37 3.774934 3.75606 0.018875
Potassium sorbate 0.001 0.010203 0.010152 5.1E-05

26
Table 19: Stream flow in pin rotor machine (kg/yr)

Components Percentage (%) Stream flow in pin rotor machine (kg/yr)


Entering as feed Leaving as product Leaving as waste
Palm oil 16 881498.18 877090.7 4407.491
Palm olein oil 32 1762996.4 1754181 8814.982
Palm stearin oil 8 440749.09 438545.3 2203.745
Soybean oil 24 1322247.3 1315636 6611.236
Monoglyceride 0.3 16528.091 16445.45 82.64045
Lecithin 0.5 27546.818 27409.08 137.7341
Citric acid 0.2 11018.727 10963.63 55.09364
Vitamin D 0.000007 0.3856555 0.383727 0.001928
Vitamin E 0.026993 1487.1425 1479.707 7.435713
Beta-carotene 0.002 110.18727 109.6363 0.550936
Water 16 881498.18 877090.7 4407.491
Salt 2.6 143243.45 142527.2 716.2173
Skim milk powder 0.37 20384.645 20282.72 101.9232
Potassium sorbate 0.001 55.093636 54.81817 0.275468

3.1.6 Mixing & Emulsification

Feed

Mixing and emulsifying tank 0.5% Waste

Product

27
Total feed entering mixing and emulsifying tank = 1025.38 kg/hr

Total waste generated from mixing and emulsifying tank = 5.13 kg/hr

Total product leaving mixing and emulsifying tank = 1020.25 kg/hr

Table 20 Stream flow in mixing and emulsifying tank (kg/hr)

Stream flow in mixing and emulsifying tank (kg/hr)


Components Percentage
(%)
Entering as feed Leaving as product Leaving as waste
Palm oil 16 164.0607 163.2404 0.820304
Palm olein oil 32 328.1214 326.4808 1.640607
Palm stearin oil 8 82.03035 81.6202 0.410152
Soybean oil 24 246.0911 244.8606 1.230455
Monoglyceride 0.3 3.076138 3.060758 0.015381
Lecithin 0.5 5.126897 5.101263 0.025634
Citric acid 0.2 2.050759 2.040505 0.010254
Vitamin D 0.000007 7.18E-05 7.14E-05 3.59E-07
Vitamin E 0.026993 0.276781 0.275397 0.001384
Beta-carotene 0.002 0.020508 0.020405 0.000103
Water 16 164.0607 163.2404 0.820304
Salt 2.6 26.65986 26.52657 0.133299
Skim milk powder 0.37 3.793904 3.774934 0.01897
Potassium sorbate 0.001 0.010254 0.010203 5.13E-05

28
Table 21 Stream flow in pin rotor machine (kg/yr)

Components Percentage Stream flow in pin rotor machine (kg/yr)


(%)
Entering as feed Leaving as product Leaving as waste
Palm oil 16 885927.82 881498.2 4429.639
Palm olein oil 32 1771855.6 1762996 8859.278
Palm stearin oil 8 442963.91 440749.1 2214.82
Soybean oil 24 1328891.7 1322247 6644.459
Monoglyceride 0.3 16611.147 16528.09 83.05573
Lecithin 0.5 27685.244 27546.82 138.4262
Citric acid 0.2 11074.098 11018.73 55.37049
Vitamin D 0.000007 0.3875934 0.385655 0.001938
Vitamin E 0.026993 1494.6156 1487.143 7.473078
Beta-carotene 0.002 110.74098 110.1873 0.553705
Water 16 885927.82 881498.2 4429.639
Salt 2.6 143963.27 143243.5 719.8164
Skim milk powder 0.37 20487.081 20384.65 102.4354
Potassium sorbate 0.001 55.370489 55.09364 0.276852

3.1.7 Preparation of Fat Phase

Feed

Fat phase mixing tank 0.5% Waste

Product

Total feed entering fat phase mixing tank = 832.97 kg/hr

29
Total waste generated from fat phase mixing tank = 4.17 kg/hr

Total product leaving fat phase mixing tank = 828.80 kg/hr

Table 22 Stream flow in fat phase mixing tank (kg/hr)

Stream flow in fat phase mixing tank (kg/hr)


Components Percentage
(%)
Entering as feed Leaving as product Leaving as waste
Palm oil 16 164.8851 164.0607 0.824426
Palm olein oil 32 329.7703 328.1214 1.648851
Palm stearin oil 8 82.44257 82.03035 0.412213
Soybean oil 24 247.3277 246.0911 1.236638
Monoglyceride 0.3 3.091596 3.076138 0.015458
Lecithin 0.5 5.15266 5.126897 0.025763
Vitamin D 0.000007 7.21E-05 7.18E-05 3.61E-07
Vitamin E 0.026993 0.278172 0.276781 0.001391
Beta-carotene 0.002 0.020611 0.020508 0.000103

Table 23 Stream flow in fat phase mixing tank (kg/yr)

Stream flow in fat phase mixing tank (kg/yr)


Components Percentage
(%)
Entering as feed Leaving as product Leaving as waste
Palm oil 16 890379.72 885927.8 4451.899
Palm olein oil 32 1780759.4 1771856 8903.797
Palm stearin oil 8 445189.86 442963.9 2225.949
Soybean oil 24 1335569.6 1328892 6677.848
Monoglyceride 0.3 16694.62 16611.15 83.4731
Lecithin 0.5 27824.366 27685.24 139.1218
Vitamin D 0.000007 0.3895411 0.387593 0.001948
Vitamin E 0.026993 1502.1262 1494.616 7.510631
Beta-carotene 0.002 111.29746 110.741 0.556487

30
3.1.8 Preparation of Aqueous Phase

Feed

Aqueous phase mixing tank 0.5% Waste

Product

Total feed entering aqueous phase mixing tank = 197.56 kg/hr

Total waste generated from aqueous phase mixing tank = 0.99 kg/hr

Total product leaving aqueous phase mixing tank = 196.57 kg/hr

Table 24 Stream flow in aqueous phase mixing tank (kg/hr)

Stream flow in aqueous phase mixing tank (kg/hr)


Components Percentage
(%)
Entering as feed Leaving as product Leaving as waste
Water 16 164.8851 164.0607 0.824426
Salt 2.6 26.79383 26.65986 0.133969
Skim milk powder 0.37 3.812969 3.793904 0.019065
Potassium sorbate 0.001 0.010305 0.010254 5.15E-05
Citric acid 0.2 2.061064 2.050759 0.010305

31
Table 25 Stream flow in aqueous phase mixing tank (kg/yr)

Stream flow in aqueous phase mixing tank (kg/yr)


Components Percentage
(%)
Entering as feed Leaving as product Leaving as waste
Water 16 890379.72 885927.8 4451.899
Salt 2.6 144686.7 143963.3 723.4335
Skim milk powder 0.37 20590.031 20487.08 102.9502
Potassium sorbate 0.001 55.648732 55.37049 0.278244
Citric acid 0.2 11129.746 11074.1 55.64873

3.1.9 Palm Oil Storage

Feed

Palm oil storage tank

Product

Total feed entering palm oil storage tank = 164.88 kg/hr

Total product leaving palm oil storage tank = 164.88 kg/hr

3.1.10 Palm Olein Oil Storage


Feed

Palm olein oil storage tank

Product

32
Total feed entering palm olein oil storage tank = 329.77 kg/hr

Total product leaving palm olein oil storage tank = 329.77 kg/hr

3.1.10 Palm Stearin Oil Storage

Feed

Palm stearin oil storage tank

Product

Total feed entering palm stearin oil storage tank = 82.44 kg/hr

Total product leaving palm stearin oil storage tank = 82.44 kg/hr

3.1.11 Soybean Oil Storage

Feed

Soybean oil storage tank

Product

Total feed entering soybean oil storage tank = 247.33 kg/hr

Total product leaving soybean oil storage tank = 247.33 kg/hr

33
3.1.12 Summary Of Mass Balance

(Palm oil storage) (Palm olein oil storage) (Palm stearin oil storage) (Soybean oil storage)
Palm oil storage tank Palm olein oil storage tank Palm stearin oil storage tank Soybean oil storage tank

164.88 kg/hr 329.77 kg/hr 82.44 kg/hr 247.33 kg/hr

828.80 kg/hr 196.57 kg/hr


(Preparation of fat phase) (Preparation of aqueous phase)
Fat phase mixing tank Aqueous phase mixing tank

Waste: 4.17 kg/hr Waste: 0.99 kg/hr

(Mixing & Emulsification) Waste: 5.13 kg/hr


Mixing & emulsifying tank

1020.25 kg/hr

(Pasteurization)
Scraped surface heat exchanger (heat) Waste: 5.10 kg/hr

1015.15 kg/hr

(Chilling) Waste: 5.07 kg/hr


Scraped surface heat exchanger (cool)

1010.08 kg/hr

(Crystallization) Waste: 5.05 kg/hr


Scraped surface heat exchanger (cool)

1005.03 kg/hr

(Kneading)
Waste: 5.03 kg/hr
Pin rotor machine

1000.00 kg/hr

Figure 5: Summary of mass balance

34
3.2 ENERGY BALANCE

ENERGY BALANCE CALCULATION OF EACH PROCESS

According to the first law of thermodynamics, it states that energy cannot be


created or destroyed. Therefore, doing an energy balance means imposing that algebraic
sum of the variables, for example the entering flux of heat, the exiting flux of heat, the
electrical or mechanical energy generated or consumed by the system, source of energy
within the system, sinks of energy within the system and energy accumulated in the
system.

The ability to perform a balance on heat from the principle of conservation of the
energy is able to observe that energy is never created or destroyed, therefore we can
balance the energy in the following manner:

Energy accumulated = Energy in Energy out

Energy accumulated = Heat in Heat out

Energy takes many forms such as heat, kinetic, potential and chemical energy.
Heat energy is a form of energy which is transferred among the particles in a substance or
by means of kinetic energy of those particles. In other words, under kinetic theory, heat is
transferred by particles bouncing into each other and usually it is denoted with the
symbol Q in physical equation. It has a formula:

Q = mcT

where m is the mass of sample, T is the temperature and c is known as specific heat
capacity.

35
3.2.1 Palm Oil Storage

Palm oil
m = 164.8851 kg/hr
cp = 1.891 kJ/kg.C
Tin = 36C

Palm oil storage tank

Palm oil
m = 164.8851 kg/hr
cp = 1.891 kJ/kg.C
Tout = 41C

Assumptions:

1. The tank is well insulated.


2. Volume, V and density, of the fluid is constant.
3. No heat generated in the process.
4. The process is steady state (no accumulation).
5. The specific heat capacity is assumed to be constant since the difference in
temperature only causes a small change in the specific heat capacity.

Specific heat capacity (kJ/kgC)


Before temperature change After temperature change
1.891 1.905

0 0

Accumulation = Energy input - Energy output - Energy loss + Energy transfer

Qin = Qout E

36
Energy calculation

Qin = icpiTin

= 164.8851(1.891)(36)

= 11224.72 kJ/hr

= 3.1179 kW

Qout = (cpT)out

= 164.8851(1.891)(41)

= 12783.70 kJ/hr

= 3.5510 kW

Qin = Qout E

3.1179 kW = 3.5510 kW E

E = 0.4331 kW (heat is required)

3.2.2 Palm Olein Oil Storage

Palm olein oil


m = 329.7703 kg/hr
cp = 2.052 kJ/kg.C
Tin = 28C

Palm olein oil storage tank

Palm olein oil


m = 329.7703 kg/hr
cp = 2.052 kJ/kg.C
Tout = 32C

37
Assumptions:

1. The tank is well insulated.


2. Volume, V and density, of the fluid is constant.
3. No heat generated in the process.
4. The process is steady state (no accumulation).
5. The specific heats capacity of oils and fats such as palm oil fraction is assumed to
be taken using equation: 0.47 + 0.00073T kcal/kgC where T is the temperature in
degree Celsius. There is no data available for some oils and fats but the equation
is probably satisfactory since the variation of specific heat with molecular weight
is small.
6. The specific heat capacity is assumed to be constant since the difference in
temperature only causes a small change in the specific heat capacity.

Specific heat capacity (kJ/kgC)


Before temperature change After temperature change
2.052 2.064

0 0

Accumulation = Energy input - Energy output - Energy loss + Energy transfer

Qin = Qout E

Energy calculation

Qin = icpiTin

= 329.7703(2.052)(28)

= 18947.28 kJ/hr

= 5.2631 kW

38
Qout = (cpT)out

= 329.7703(2.052)(32)

= 21654.03 kJ/hr

= 6.0150 kW

Qin = Qout E

5.2631 kW = 6.0150 kW E

E = 0.7519 kW (heat is required)

3.2.3 Palm Stearin Oil Storage

Palm stearin oil


m = 82.4425 kg/hr
cp = 2.094 kJ/kg.C
Tin = 42C

Palm stearin oil storage


tank

Palm stearin oil


m = 82.4425 kg/hr
cp = 2.094 kJ/kg.C
Tout = 57C

Assumptions:

1. The tank is well insulated.


2. Volume, V and density, of the fluid is constant.
3. No heat generated in the process.
4. The process is steady state (no accumulation).

39
5. The specific heats capacity of oils and fats such as palm oil fraction is assumed to
be taken using equation: 0.47 + 0.00073T kcal/kgC where T is the temperature in
degree Celsius. There is no data available for some oils and fats but the equation
is probably satisfactory since the variation of specific heat with molecular weight
is small.
6. The specific heat capacity is assumed to be constant since the difference in
temperature only causes a small change in the specific heat capacity.

Specific heat capacity (kJ/kgC)


Before temperature change After temperature change
2.094 2.140

0 0

Accumulation = Energy input - Energy output - Energy loss + Energy transfer

Qin = Qout E

Energy calculation

Qin = icpiTin

= 82.4425(2.094)(42)

= 7250.65 kJ/hr

= 2.0141 kW

Qout = (cpT)out

= 82.4425(2.094)(57)

= 9840.17 kJ/hr

= 2.7334 kW

40
Qin = Qout E

2.0141 kW = 2.7334 kW E

E = 0.7193 kW (heat is required)

3.2.4 Soybean Oil Storage

Palm stearin oil


m = 247.3277 kg/hr
cp = 1.886 kJ/kg.C
Tin = 25C

Soybean oil storage tank

Palm stearin oil


m = 247.3277 kg/hr
cp = 1.886 kJ/kg.C
Tout = 25C

Assumptions:

1. The tank is well insulated.


2. Volume, V and density, of the fluid is constant.
3. No heat generated in the process.
4. The process is steady state (no accumulation).
5. The specific heats capacity of soybean oil is assumed to be taken using equation:
0.4353 + 0.000616T kcal/kgC where T is the temperature in degree Celsius.

0 0

Accumulation = Energy input - Energy output - Energy loss + Energy transfer

41
Qin = Qout E

Energy calculation

Qin = icpiTin

= 247.3277(1.886)(25)

= 11661.50 kJ/hr

= 3.2393 kW

Qout = (cpT)out

= 247.3277(1.886)(25)

= 12180.89 kJ/hr

= 3.2393 kW

Qin = Qout E

3.2393 kW = 3.2393 kW E

E = 0 kW (no heat is required, generated or released)

42
3.2.5 Preparation of Fat Phase

Palm oil Palm olein oil Lecithin Beta carotene


m = 164.8851 kg/hr m = 329.7703 kg/hr m = 5.1526 kg/hr m = 0.0206 kg/hr
cp = 1.891 kJ/kg.C cp = 2.052 kJ/kg.C cp = 1.5 kJ/kg.C cp = 3.9 kJ/kg.C
Tin = 41C Tin = 32C Tin = 25C Tin = 25C

Palm stearin oil Soybean oil Vitamin E Monoglyceride


m = 82.4425 kg/hr m = 247.3277 kg/hr m = 0.2782 kg/hr m = 3.0915 kg/hr
cp = 2.094 kJ/kg.C cp = 1.886 kJ/kg.C cp = 1.7 kJ/kg.C cp = 1.3 kJ/kg.C
Tin = 57C Tin = 25C Tin = 25C Tin = 25C

Vitamin D
m = 7.2137 x 10-5 kg/hr
cp = 1.7 kJ/kg.C
Tin = 25C

Waste accumulated
Fat phase mixing tank m = 4.17 kg/hr
cp = 1.968 kJ/kg.C
Tout = 65C

Product out
m = 828.80 kg/hr
cp = 1.968 kJ/kg.C
Tout = 65C

Assumptions:

1. Perfect mixing is assumed in the tank.


2. The tank is well insulated.
3. Volume, V and density, of the fluid is constant.
4. The tank inlet flow rate and inlet temperature may change (these are the inputs).
5. No heat generated in the process.
6. There is accumulation due to the waste left inside the fat phase mixing tank.
7. The specific heat capacity is assumed to be constant since the difference in
temperature only causes a small change in the specific heat capacity.

43
Specific heat capacity (kJ/kgC)
Before temperature change After temperature change
1.968 2.068
0
Accumulation = Energy input - Energy output - Energy loss + Energy transfer

Qin = Qout + Qaccumulation E

Energy calculation

Qin = icpiTin

= 164.8851(1.861)(41) + 329.7703(2.043)(32) + 82.4425(2.0)(57) + 247.3277(2.043)(25)


+ 3.0915(1.3)(25) + 5.1526(1.5)(25) + 0.2782(1.7)(25) + 0.0206(3.9)(25) +
7.2137105(1.7)(25)

= 56246.96 kJ/hr

= 15.6241 kW

Qout = (cpT)out

= 828.80(1.968)(65)

= 106059.41 kJ/hr

= 29.4609 kW

Qaccumulation = (cpT)waste

= 4.17(1.968)(65)

= 532.96 kJ/hr

= 0.1480 kW

Qin = Qout + Qaccumulation E

15.6241 kW = 29.4609 kW + 0.1480 kW E

E = 13.9848 kW (heat is required)

44
3.2.6 Preparation Of Aqueous Phase

Water Salt Skim milk powder Potassium sorbate


m = 164.8851 kg/hr m = 26.7938 kg/hr m = 3.8129 kg/hr m = 0.0103 kg/hr
cp = 4.186 kJ/kg.C cp = 0.88 kJ/kg.C cp = 4.0 kJ/kg.C cp = 1.84 kJ/kg.C
Tin = 25C Tin = 25C Tin = 25C Tin = 25C

Citric acid
m = 2.0610 kg/hr
cp = 1.18 kJ/kg.C
Tin = 25C

Waste accumulated
Aqueous phase mixing tank m = 0.99 kg/hr
cp = 3.697 kJ/kg.C
Tout = 40C

Product out
m = 196.57 kg/hr
cp = 3.697 kJ/kg.C
Assumptions: Tout = 40C

1. Perfect mixing is assumed in the tank.


2. The tank is well insulated.
3. Volume, V and density, of the fluid is constant.
4. The tank inlet flow rate and inlet temperature may change (these are the inputs).
5. No heat generated in the process.
6. There is accumulation due to the waste left inside aqueous phase mixing tank.
7. The specific heat capacity is assumed to be constant since the difference in
temperature only causes a small change in the specific heat capacity.

Specific heat capacity (kJ/kgC)


Before temperature change After temperature change
3.697 3.696

45
0

Accumulation = Energy input - Energy output - Energy loss + Energy transfer

Qin = Qout + Qaccumulation E

Energy calculation

Qin = micpiT

= 164.8851(4.186)(25) + 26.7938(0.88)(25) + 3.8129 (4.0)(25) + 0.0103(1.84)(25) +


2.0610(1.18)(25)

= 18262.53 kJ/hr

= 5.0729 kW

Qout = (cpT)out

= 196.57(3.697)(40)

= 29073.95 kJ/hr

= 8.0761 kW

Qaccumulation = (cpT)waste

= 0.99(3.697)(40)

= 146.30 kJ/hr

= 0.0406 kW

Qin = Qout + Qaccumulation E

5.0729 kW = 8.0761 kW + 0.0406 E

E = 3.0438 kW (heat is required)

46
3.2.7 Mixing & Emulsification

Fat phase Aqueous phase


m = 828.80 kg/hr m = 196.57 kg/hr
cp = 1.968 kJ/kg.C cp = 3.697 kJ/kg.C
Tin = 65C Tin = 40C

Waste accumulated
Mixing & Emulsifying tank
m = 5.13 kg/hr
cp = 2.300 kJ/kg.C
Tout = 60C
Product out
m = 1020.25 kg/hr
cp = 2.300 kJ/kg.C
Tout = 60C

Assumptions:

1. Perfect mixing is assumed in the tank.


2. The tank is well insulated.
3. Volume, V and density, of the fluid is constant.
4. No heat generated in the process.
5. There is accumulation due to the waste left inside the mixing & emulsifying tank.
6. The specific heat capacity is assumed to be constant since the difference in
temperature only causes a small change in the specific heat capacity.

Specific heat capacity (kJ/kgC)


Before temperature change After temperature change
2.300 2.369

0
Accumulation = Energy input - Energy output - Energy loss + Energy transfer

Qin = Qout + Qaccumulation E

47
Energy calculation

Qin = icpiT

= 828.80(1.968)(65) + 196.57(3.697)(40)

= 135089.31 kJ/hr

= 37.5248 kW

Qout = (cpT)out

= 1020.25(2.300)(60)

= 140794.50 kJ/hr

= 39.1096 kW

Qaccumulation = (cpT)waste

= 5.13(2.300)(60)

= 707.94 kJ/hr

= 0.1966 kW

Qin = Qout + Qaccumulation E

37.5248 kW = 39.1096 kW + 0.1966 kW E

E = 1.7814 kW (heat is required)

48
3.2.8 Pasteurization

Feed in
m = 1020.25 kg/hr
cp = 2.300 kJ/kg.C
Tin = 60C

Waste accumulated
m = 5.10 kg/hr
Scraped surface heat exchanger (heat) cp = 2.300 kJ/kg.C
Tout = 80C

Product out
m = 1015.15 kg/hr
cp = 2.300 kJ/kg.C
Tout = 80C

Assumptions:

1. The heat exchanger is well-insulated.


2. Volume, V and density, of the fluid is constant.
3. No heat generated in the process.
4. There is accumulation due to the waste inside the scraped surface heat exchanger.
5. The specific heat capacity is assumed to be constant since the difference in
temperature only causes a small change in the specific heat capacity.

Specific heat capacity (kJ/kgC)


Before temperature change After temperature change
2.300 2.417

0
Accumulation = Energy input - Energy output - Energy loss + Energy transfer

Qin = Qout + Qaccumulation E

49
Energy calculation

Qin = icpiT

= 1020.25(2.300)(60)

= 140794.50 kJ/hr

= 39.1096 kW

Qout = (cpT)out

= 1015.15(2.300)(80)

= 186787.60 kJ/hr

= 51.8854 kW

Qaccumulation = (cpT)waste

= 5.10(2.300)(80)

= 938.40 kJ/hr

= 0.2606 kW

Qin = Qout + Qaccumulation E

39.1096 kW = 51.8854 kW + 0.2606 kW E

E = 13.0364 kW (heat is required)

50
3.2.9 Chilling

Feed in
m = 1015.15 kg/hr
cp = 2.300 kJ/kg.C
Tin = 80C

Waste accumulated
m = 5.07 kg/hr
Scraped surface heat exchanger (cool) cp = 2.300 kJ/kg.C
Tout = 60C

Product out
m = 1010.08 kg/hr
cp = 2.300 kJ/kg.C
Tout = 60C

Assumptions:

1. The heat exchanger is well-insulated.


2. Volume, V and density, of the fluid is constant.
3. No heat generated in the process.
4. There is accumulation due to the waste left inside the scraped surface heat
exchanger.
5. The specific heat capacity is assumed to be constant since the difference in
temperature only causes a small change in the specific heat capacity.

Specific heat capacity (kJ/kgC)


Before temperature change After temperature change
2.300 2.369

0
Accumulation = Energy input - Energy output - Energy loss + Energy transfer

Qin = Qout + Qaccumulation E

51
Energy calculation

Qin = icpiT

= 1015.15(2.300)(80)

= 186787.60 kJ/hr

= 51.8854 kW

Qout = (cpT)out

= 1010.08(2.300)(60)

= 139391.04 kJ/hr

= 38.7197 kW

Qaccumulation = (cpT)waste

= 5.07(2.300)(60)

= 699.66 kJ/hr

= 0.1943 kW

Qin = Qout + Qaccumulation E

51.8854 kW = .38.7197 kW + 0.1943 kW E

E = -12.9714 kW (heat is released)

52
3.2.10 Crystallization

Feed in
m = 1010.08 kg/hr
cp = 2.300 kJ/kg.C
Tin = 60C

Waste accumulated
m = 5.05 kg/hr
Scraped surface heat exchanger (cool) cp = 2.300 kJ/kg.C
Tout = 19C

Product out
m = 1005.03 kg/hr
cp = 2.300 kJ/kg.C
Tout = 19C

Assumptions:

1. The heat exchanger is well-insulated.


2. Volume, V and density, of the fluid is constant.
3. No heat generated in the process.
4. There is accumulation due to the waste left inside the scraped surface heat
exchanger.
5. The specific heat capacity is assumed to be constant since the difference in
temperature only causes a small change in the specific heat capacity.

Specific heat capacity (kJ/kgC)


Before temperature change After temperature change
2.300 2.275

Accumulation = Energy input - Energy output - Energy0loss + Energy transfer

Qin = Qout + Qaccumulation E

53
Energy calculation

Qin = icpiT

= 1010.08(2.300)(60)

= 139391.04 kJ/hr

= 38.7197 kW

Qout = (cpT)out

= 1005.03(2.300)(19)

= 43919.81 kJ/hr

= 12.1999 kW

Qwaste = (cpT)out

= 5.05(2.300)(19)

= 220.685 kJ/hr

= 0.0613 kW

Qin = Qout + Qwaste E

38.7197 kW = 12.1999 kW + 0.0613 kW E

E = -26.4585 kW (heat is released)

54
3.2.11 Kneading

Feed in
m = 1005.03 kg/hr
cp = 2.300 kJ/kg.C
Tin = 19C

Waste out
m = 5.03 kg/hr
Pin rotor machine cp = 2.300 kJ/kg.C
Tout = 26C

Product out
m = 1000.00 kg/hr
cp = 2.300 kJ/kg.C
Tout = 26C

Assumptions:

1. The pin rotor machine is well-insulated.


2. Volume, V and density, of the fluid is constant.
3. No energy transfer in this process.
4. There is accumulation due to the waste left inside the scraped surface heat
exchanger.
5. The specific heat capacity is assumed to be constant since the difference in
temperature only causes a small change in the specific heat capacity.

Specific heat capacity (kJ/kgC)


Before temperature change After temperature change
2.300 2.290

0
Accumulation = Energy input - Energy output - Energy loss + Heat generated

55
Qin = Qout + Qaccumulation E

Energy calculation

Qin = icpiT

= 1005.03(2.300)(19)

= 43919.81 kJ/hr

= 12.1999 kW

Qout = (cpT)out

= 1000.00(2.300)(26)

= 59800.00 kJ/hr

= 16.6111 kW

Qaccumulation = (cpT)waste

= 5.03(2.300)(26)

= 300.79 kJ/hr

= 0.0835 kW

Qin = Qout + Qwaste E

12.1999 kW = 16.6111 kW + 0.0835 kW E

E = 4.4947 kW (heat is generated)

56
3.2.12 Summary Of Energy Balance
Energy = 0 kW
Energy = 0.4331 kW Energy = 0.7519 kW Energy = 0.7193 kW
(no heat is required, released
(heat is required) (heat is required) (heat is required)
or generated)
(Palm oil storage) (Palm olein oil storage) (Palm stearin oil storage) (Soybean oil storage)
Palm oil storage tank Palm olein oil storage tank Palm stearin oil storage tank Soybean oil storage tank

(Preparation of fat phase) (Preparation of aqueous phase)


Fat phase mixing tank Aqueous phase mixing tank

Energy = 13.9848 kW Energy = 3.0438 kW


(heat is required) (heat is required)

(Mixing & Emulsification) Energy = 1.7814 kW


Mixing & emulsifying tank (heat is required)

(Pasteurization) Energy = 13.0364 kW


Scraped surface heat exchanger (heat) (heat is required)

(Chilling) Energy = -12.9714 kW


Scraped surface heat exchanger (cool) (heat is released)

(Chilling & crystallization) Energy = -26.4585 kW


Scraped surface heat exchanger (cool) (heat is released)

(Kneading) Energy = 4.4947 kW


Pin rotor machine (heat is generated)

Figure 6: Summary of energy balance

57
3.3 HEAT INTEGRATION

Process heat integration means the heat that was previously cooled off is
recovered and reused in another unit operation. With direct process heat integration, heat
is transferred directly from one process stream to the other streams. The two streams need
to be fairly close to each other and there should not be any dangers involved if the
streams mix in case of a leak. The heat integration will reduce the load on both the
heating and cooling utility systems.

Pinch analysis is the method that can be used to analyze a set of heat flows and to
determine whether it is possible to interchange these heat flows. When application of a
heat pump is considered, it might be useful to carry out a pinch analysis. The goal of
pinch analysis is to map all heat flows and then connect the hot and cold flows that can
exchange heat. A heat pump can be used to couple these needs for cooling and heating.
The pinch analysis is a structured method which involves the following procedures:

1. Map all process streams inside and in the vicinity of the plant and compose a
mass and energy balance.
2. Put the different process streams in a table that shows their supply temperature,
desired temperature and heat capacity.
3. Determine the power of the different process streams for different temperature
steps and make a graphical representation of these data points.
4. Determine whether or not is is possible to interchange the heat between different
process flows.
5. Determine the location of the pinch point and find out if more exchange of heat is
needed after direct heat exchange is performed.
6. Depending on the temperature levels and powers, a decision can be made on
which installation is most suitable to apply.

58
3.3.1 Pinch Analysis

832.97 kg/hr 197.56 kg/hr

31C Stream 1 25C Stream 2


Preparation of fat phase Preparation of aqueous phase

65C 40C

1025.38 kg/hr 52.5C Stream 3

Mixing & Emulsification

1020.25 kg/hr 60C Stream 4

Pasteurization

1015.15 kg/hr 80C Stream 5

Chilling

1010.08 kg/hr 60C Stream 6

Crystallization

19C

Figure 7: Pinch analysis of margarine process

59
Table 26: Typical Stream Data

Stream Type Cp Mass flow Heat Actual Heat


number (kJ/kgC) rate (kg/hr) capacity temperature (C) load
(kW/C) Ts Tt (kW)
1 Cold 1.968 832.97 0.4553 31 65 13.9848
2 Cold 3.697 197.56 0.2029 25 40 3.0438
3 Cold 2.300 1025.38 0.6551 52.5 60 1.7814
4 Cold 2.300 1020.25 0.6518 60 80 13.0364
5 Hot 2.300 1015.15 0.6485 80 60 12.9714
6 Hot 2.300 1010.08 0.6453 60 19 26.4585

Formula showing relationship of actual temperature and interval temperature


Hot
Tactual - Tmin/2 = Tinterval
Cold Tmin = 10C
Tactual + Tmin/2 = Tinterval

Table 27: Actual and Interval Temperature

Stream number Actual temperature (C) Interval temperature (C)


Ts Tt Ts Tt
1 31 65 36 70
2 25 40 30 45
3 52.5 60 57.5 65
4 60 80 65 85
5 80 60 75 55
6 60 19 55 14

60
Table 28 Ranked Order of Interval Temperature

Rank Interval, Tn (C) Streams in interval


85 - -
75 10 4
70 5 4,5
65 5 1,4,5
57.5 7.5 1,3,5
55 2.5 1,5
45 10 1
36 9 1,2,6
30 6 2,6
14 16 6

Table 29: Problem Table

Rank Cpcold - Interval, Tn H Heat cascade Heat cascade +


Cphot (C) (kW) 16.4778
(kW/C)
85 0 - 0 0 16.4778
75 0.6518 10 6.5180 -6.5180 9.9598
70 0.0033 5 0.0165 -6.5345 9.9433
65 0.4586 5 2.2930 -8.8275 7.6503
57.5 0.4619 7.5 3.4642 -12.2917 4.1861
55 -0.1932 2.5 -0.4830 -11.8087 4.6691
45 0.4553 10 4.5530 -16.3617 0.1161
36 0.0129 9 0.1161 -16.4778 0
30 -0.4424 6 -2.6544 -13.8234 2.6544
14 -0.6453 16 - -3.4986 12.9792
10.3248

61
Tpinch = 36C
Tpinch (hot) = 41C
Tpinch (cold) = 31C

65 31 31
1 Cp = 0.4553 kW/C

40 31 31
25
Cp = 0.2029 kW/C
2
31
60 52.5 31 Cp = 0.6551 kW/C
3
60 31
Cp = 0.6518 kW/C
80 31
4 80 60 41 41
Cp = 0.6485 kW/C

60 41 41 19
5 Cp = 0.6453 kW/C

Above pinch (Cphot Cpcold)


Stream 4 & Stream 5
H4 = 0.6518 (80-60) = 13.036 kW
H5 = 0.6485 (60-80) = -12.970 kW
Stream 3 & Stream 6
H3 = 0.6551 (60-52.5) = 4.913 kW
H6 = 0.6453 (41-60) = -12.261 kW
Below pinch (Cpcold Cphot)
Stream 2 & Stream 6
H2 = 0.2029 (31-25) = 1.217 kW
H6 = 0.6453 (19-41) = -14.196 kW

62
3.4 DETAILS PROCESS FLOW DIAGRAM

The process flow diagram (PFD) for the production of margarine is shown in Figure 8. Table 30 shows the stream flow properties.
Figure 8: Process Flow Diagram for Margarine Production

63
Table 30: Stream Flow Properties

Stream 1 2 3 4 5 6 7

Temperature (C) 41 32 57 25 25 25 25

Total flow rate (kg/hr) 164.8851 329.7703 82.4425 247.3277 8.5431 164.8851 32.6781

Component flow rate (kg/hr)

Palm oil 164.8851


Palm olein oil 329.7703
Palm stearin oil 82.4425
Soybean oil 247.3277
Water 164.8851
Monoglyeride 3.0916
Lecithin 5.1526
Vitamin E 0.2781
Beta carotene 0.0206

Vitamin D 7.21372E-05

Citric acid 2.0610


Salt 26.7938

Skim milk powder 3.8129

Potassium sorbate 0.0103 64


Stream 8 9 10 11 12 13 14
Temperature
65 40 60 80 60 19 26
(C)
Total flow rate
828.8039 196.5755 1020.2500 1015.1500 1010.0800 1005.0300 1000.0000
(kg/hr)
Component
flow rate
(kg/hr)
Palm oil 164.0607 163.2404 162.4242 161.6121 160.8040 160.0000
Palm olein oil 328.1214 326.4808 324.8484 323.2242 321.6080 320.0000
Palm stearin oil 82.03035 81.6202 81.2121 80.8060 80.4020 80.0000
Soybean oil 246.0911 244.8606 243.6363 242.4181 241.2060 240.0000
Water 164.0607 163.2404 162.4242 161.6121 160.8040 160.0000
Monoglyeride 3.0761 3.0607 3.0454 3.0302 3.0151 3.0000
Lecithin 5.1269 5.1012 5.0757 5.0504 5.0251 5.0000
Vitamin E 0.2768 0.2754 0.2740 0.2726 0.2713 0.2699
Beta carotene 0.0205 0.0204 0.0203 0.0202 0.0201 0.0200
Vitamin D 7.18E-05 7.14E-05 7.11E-05 7.07E-05 7.04E-05 0.00007
Citric acid 2.0507 2.0405 2.0303 2.0201 2.0100 2.0000
Salt 26.6598 26.5266 26.39393 26.2619 26.1306 26.0000
Skim milk
3.7939 3.7749 3.7561 3.7373 3.7186 3.7000
powder
Potassium
0.010254 0.010203 0.010152 0.010101 0.01005 0.0100
sorbate

65
CHAPTER 4

DETAILS PROCESS ENGINEERING DESIGN

4.1 PROCESS CALCULATION

4.1.1 Design calculation of pin rotor machine

i. Volume of pin rotor machine

Mass flow rate of kneading process= 1000 kg/hr

Density of margarine = 956 kg/m3

Duration time for kneading process= 110 to 145 s= take as average=127.5 s = 0.0354 hr

1000 /
Volumetric flow rate outlet = = 1.046 m3/hr
956 /3

= 1.046 m3/hr x 1000 L/m3 x 0.0354 hr

= 37.03 L

ii. Piping diameter selection

Estimation of piping diameter calculation for margarine product before and after entering the
pin rotor machine can be done by using 2 methods given:

1. Ordinary method

The typical velocity for the margarine = 1.0 m/s

Mass flow rate = 1000 kg/hr = 0.278 kg/s

Volumetric flow rate = 1.046 m3/hr = 0.000291 m3/s

Area of pipe = volumetric flow rate / velocity

0.000291
= = 2.91 10-4 m2
1.0

66
4
Diameter of pipe =

4
= 2.91 104

= 0.0192 m = 19.2 mm

2. Economic pipe diameter formula

This formula used for turbulent flow in 304 stainless-steel pipe which have diameter of 25-
200 mm.

di, optimum = 0.550.49 -0.35


Where di,opt is the optimum diameter in m, G is the flowrate in kg/s, and is the fluids
density in kg/m3
= 0.55(1000/3600)0.49(956)-0.35
= 0.0266 m = 26.59 mm = 1.047 inch

From the dimension stainless steel pipe table, take the standard size of the pipe is 1 inch
which is the inner diameter is 1.049 inch with outer diameter of 33.401mm.
Inner diameter of pipe = 26.64 mm


Cross sectional area of pipe = 4 ()2


= 4 (26.64 103 )2

= 5.57 10-4 m2

iii. Motor size

Motor size of pin rotor machine can be calculated by using formula given:


( ) ()

Motor size = 30600

Where, capacity of margarine is 1050 L/hr, pressure of 120 bar

1050 x 120
= = 4.12 kW
30600

67
iv. Minimum thickness of the equipment to resist internal pressure

From the equipment design formula, minimum thickness of the pin rotor machine can be
obtained from this formula:


e = 2

Where: Pi= Design pressure, Di= Inner Diameter, f= Typical design stress

Design pressure of pin rotor machine is 120 bar, take as 10% above operating pressure.

Pi= (120-1) x 1.1

=13.09 N/mm2

Di= 250mm

f, design stress at below 50 oC for stainless steel 316= 175 N/mm2


13.09 250
2
e=
(2 175)/213.09/2

e= 9.71 mm

From min thickness= 9.71mm increase in 2mm.

= 11,13,15,17 and 19 mm

Average thickness = (11+13+15+17+19)/5

= 15mm

v. Weight load of the pin rotor machine

Weight of pin rotor machine = 550 kg

Weight load= mg

= 550kg x 9.81 m/s2

= 5395.5 N

68
vi. Bending Moment

Me = We Lo , where We = Dead weight of equipment,

Lo= Distance between centre of gravity of equipment and column centre line

Me= 5395.5 N x 600mm

= 3237.3 Nm

Figure 9: Bending moment due to offset equipment

vii. Analysis of stress


2=h= where P= pressure, D= Inner diameter, t= maximum thickness
2


1=L= 4

13.0 250
Horizontal stress, 2= = 86.11 N/mm2
2 19

13.09 250
Longitudinal stress, 1= = 43.06 N/mm2
419

Direct stress w due to weight of the vessel, its content and any attachment.

5395.5
Dead weight stress, w= (+) = (250+19)19=0.34 N/mm2

Iv, second moment of area of the vessel about plane of bending

Do= 250mm +2 x 19mm


Iv= 64 (4 4 ) = 64 (2884 2504 ) = 146.0 x 106 mm4

69
Bending stress, B

= 3237.3 Nm / 146.0 x 106 mm4 (250mm /2 + 19mm)

= 0.00015 N/mm2

Resultant longitudinal stress, z = L + w b

= 43.06 + 0.34 0.00015 N/mm2

= 43.4001 N/mm2 (upwind), 43.3999 N/mm2 (downwind)

As there is no torsional shear stress, radial stress is also negligible, principle stress will be z
and h. Greatest difference between principle stress will be:

(upwind and downwind) = 86.11 43.40

= 42.71 N/mm2

The difference between the principal stresses is lower than maximum allowable design stress
which is 175 N/mm2. Thus, the design is acceptable.

viii. Base frames support

Base frames support is most commonly used for horizontal cylindrical vessel. A horizontal
supports normally consist of two cross sections. Four saddle supports vessel having uniform
load and distribution of longitudinal axial bending moment. Maxima occur at the supports
and at mid-span. Saddle supports usually located near to the ends, to make use of stiffness
effect of the ends.

Duration time for kneading process= 110 to 145 s= take as average=127.5 s = 0.0354 hr

Weight of vessel = 5395.5 N

Weight of margarine = 1000 kg/hr x 0.0354 hr = 35.4 kg x 9.81 m/s2 = 347.27 N

Total weight = 5395.5 + 347.27 N = 5742.77 N

L= Distance between of the support = 600 mm

70
X= Length of the frame base = 800mm

2
ML1 = -
2 2

= (5742.77 N x 0.6 x 0.8m)/2 (5742.77 N x 0.82)/2

= - 459.43Nm

4 1
Stress in the vessel wall, b1= 2

Which ML1=longitudinal bending moment at mid-span = -455.97 Nm

D=shell diameter = 250 mm

t=shell thickness = 19 mm

b1 = (4 x 455.97 x 103 Nm)/ ( x 19mm x 2502 mm)

= 0.489 N/mm2

Thus, since the bending moment is negative, meaning the frame base is bent concave facing
downward, and since the location is below the frame base centroid, then this stress is
compressive.

The resultant axial stress due to bending and pressure is given by:


z = 4 b1

13.09 250
= 0.489 = 43.06 0.489 N/mm2
419

= 43.55, 42.57 N/mm2

Magnitude of longitudinal bending stress at support depend on local stiffness of shell


and given by;

4 2
b2= where ML2 = longitudinal bending moment at the supports, Ch=empirical
2

constant., varying from 1.0-0.1 for thin , unstiffens shell.

Assumed that the Ch of vessel is 0.5

71
(/2) (/2)2
ML2 = -
2 2

= (5742.77 N x 0.6 x (0.8m/2))/2 (5742.77 N x (0.8/2)2)/2

= 229.71 Nm

b2 = 4 x 229.71 x 103/ (0.5 x x 19 x (2502))

= 0.493 N/mm2

Thus, since bending moment is positive, this is a tensile stress.

4.2 ASSUMPTION MADE AND JUSTIFICATION

The equipment was decided to be purchased from supplier because of the complicated design.
The basic calculation for the equipment has been calculated based on the criteria and
information from the brochure of the equipment.

The calculation made was basically the general calculation for the pipe size requirement,
minimum thickness of the pin rotor machine, weight load, bending moment, stress analysis
and base frame support.

Assumption:

1. Volume and density of margarine are constant throughout the process.


2. Take average time duration for the kneading process.
3. Using outlet flow rate for the calculation.
4. Thickness of vessel, weight load, bending moment and stress were calculated by using
pressure vessel formula.
5. Base frames support was calculated by using beams calculation and saddle support
formula.

72
4.3 SUMMARY ON PROCESS UNIT DESIGN

4.3.1 Design parameter

Table 31: Design parameter of the pin rotor machine

Parameters Design condition


Operating pressure 120 bar
Temperature inlet 19
Temperature outlet 26
Flow rate inlet 1.051 m3/hr
Flow rate outlet 1.046 m3/hr
Speed of the machine 50-300 m

4.3.2 Specification of selection of design

Table 32: Specification for process design

Types Selection
Operating pressure 120 bar
Type of valve Automatic valve
Motor size 4.12 kW
Capacity 1000 kg/hr
Volume of machine 37.03 L
Pipe diameter 26.64 mm

73
CHAPTER 5

MECHANICAL AND EQUIPMENT COSTING

5.1 DESIGN PROCEDURE AND BASIS

5.1.1Pin rotor machine


Pin rotor machine consists of cylinder which containing inner rotating shaft. The annular
space is large with two rows of pins that distributed on the cylinder. The shaft also equipped
with two rows of pins. The mechanism of this equipment is rotated with shaft through the
gaps left by pins that fixed on cylinder wall. This mechanical work can be known as shear
stress of the equipment where can ensure the homogeneity of the product. Besides,
mechanical work of pin rotor machine can melt up the margarine to form more crystallize
structure. Dimension of pin rotor machine basically depending on their capacity to hold the
product. According to the research, the capacity of the pin rotor machine is depending on the
size of scraped surface heat exchanger.

Table 33: Recommended processing for residence values (Hui, 2007)

Product Pin machine Resting tube Capacity (%)


(%volume/Time) (%volume/Time)
Puff pastry margarine 5-6 10-15 40-70
Cake and cream 1-4 2 90-110
margarine
Table margarine 1-2 1-2 100
Soft table margarine 3-4 - 100-110
Low fat spreads 3-4 - 50-90

From table above, we can determine the volume of pin rotor machine. The cooling surface of
SSHE determines the capacity of products. Our capacity in SSHE is designed to give
1000kg/hr of soft table margarine, as a rule of thumb the volume of pin rotor machine will be
3-4 % of throughput.

74
Therefore, the volume of the pin rotor machine will be 30-40 L. The specified volume of pin
rotor used depends on the types of margarine and decided from plant to plant.

1000 kg/hr x (3/100) = 30 L

1000 kg/hr x (4/100) = 40L

From volume of pin rotor machine, we can identify the other properties of the pin rotor
machine based on the research. Pin rotor machine have different types and variation
depending on the uses in industry. For margarine production, pin rotor machine can be varied
by their volume. Pin rotor machine is available in different volumes such as 25 L, 50 L, 80 L,
100 L and 200 L.

For the modular design, pin rotor machine can be built as stand-alone mounted on a solid
baseplate. Pin rotor machine can gives a lot of benefits to the margarine production as it can
be used in wide diversity of fat product with highest flexibility to production process. It also
equipped with hygienic design and have standard gearbox. Pin rotor machine have been
proven technique and continuous innovations with a solid design.

Table 34: Technical Sheet of Pin rotor machine (Corporation, 2013)

Pin rotor machine 25 L 50 L 80 L 100 L 200 L

Designed pressure (Bar) 120 120 120 120 75

Cylinder volume (L) 25 50 80 100 200

Gear motor (kW) 7.5 7.5 11 11 18.5

Including separate fan and


Thermo-sensor

Frequency converter (kW) 7.5 7.5 11 11 18.5

Rpm 50-300 50-300 50-300 50-300 15-220

PT-100 Temperature Sensor 1 1 1 1 1

Machine weight with one cylinder 450 550 600 650 800
(kg)

75
From table 34, we can choose the most suitable pin rotor machine for margarine product. We
already know the volume of pin rotor machine which is 30-40 L. So, we will choose pin rotor
machine with 50 L volume to be used in our margarine production. We choose higher volume
than original volume to sustain the margarine products. This pin rotor machine has designed
pressure of 120 bar. The gear motor of pin rotor machine is 7.5 kW with 7.4 kW of frequency
converter and rotating for about 50-300 rpm. This pin rotor machine is equipped with one
temperature indicator to monitor the temperature during process. The weight for this pin rotor
machine including the shaft is 550 kg.

From the research, the dimension of the pin rotor machine is 250 mm inner diameter with 360
mm outer diameter. Length of pin rotor machine is 600 mm long. From this value, we can
calculate the minimum thickness require for pressure loading, baseplate support and others.
Figure 10 has shown that the schematic diagram of the pin rotor machine where we can
determine the number of pins and other dimension of the pin rotor machine. This figure
shows a small dimension of pin rotor machine for experimental used. From this dimension,
we can calculate the actual dimension for pin rotor machine according to the diameter and
length of the pin rotor machine given from the brochure.

Figure 10: Schematic diagram of the pin machine. (Hiroshi Ito & Yoshiyuki Shimizu, 2009)

Figure 11: Numerical analysis model for pin machine (Hiroshi Ito & Yoshiyuki Shimizu,
2009)

76
5.2 MATERIAL OF CONSTRUCTION

The major material used is stainless steel. Definition of stainless steel is a form of steel
containing chromium, resistant to tarnishing and rust. Its really suitable for food processing
product where contamination of the food product can be avoided.

Besides, the materials of all equipment used must made of stainless steel materials. Stainless
steel is most frequent corrosion resistance materials that used in food processing. There are 3
main type of stainless steel which are:

1. Ferritic : 13-20% Cr, <0.1% C, with no nickel

2. Austenitic : 18-20% Cr, > 7% Cr

3. Martensitic : 12-10% Cr, 0.2-0.4% C, >2 % Ni

In food processing industrial, most equipment are used Austenitic of stainless steel which can
be classified in a few type depending on their purpose of uses.

1. Type 304: Most generally use for food processing. Has low content of Carbon and
suitable for heat application process

2. Type 304L: Contain carbon less than 0.33% and suitable for thicker welded section
application.

3. Type 321 : Stabilized version of SS 304, stabilized with Titanium to prevent carbide
precipitate during welding, suitable for high temperature use. Type 347 stabilized
with niobium

4. Type 316 : Molybdenum is added to improve corrosion resistance, suitable in use of


sulphuric acid or solution contain chlorides

5. Type 316L : Low carbon version of SS 316

6. Type 309/310: Alloy with high chromium content, give greater resistance to oxidation
at high temperature

77
5.2.1 Pin rotor machine

Pin rotor machine is made up from materials that will not give bad effect to the margarine
product. In this project, pin rotor machine is made up of stainless steel type 316. UNS
number for this type steel is S31600. Stainless steel type 316 is a standard molybdenum-
bearing grade which can give great overall corrosion resistant properties which second
common materials used after grade 304. It can have high resistance to pitting and crevice
corrosion in chloride environments. Besides, it also gives excellent toughness, even down to
cryogenic temperatures. This type of stainless steel is mostly in specified in flat rolled
product that covered equipment for chemical, food, paper, mining, pharmaceutical and
petroleum industries.

5.2.1.1 Composition of stainless steel type 316

Table 35: Composition of stainless steel type 316 (AZoM.com, 2015)

Composition C% Mn% Si% P% S% Cr% Ni% Mo% N%


(%)
Value 0.08 2.0 0.75 0.045 0.03 16.0- 10.0- 2.0-3.0 0.10
18.0 14.0

5.2.1.2 Mechanical properties

Table 36: Mechanical properties of 316 grade stainless steels. (AZoM.com, 2015)

Properties Tensile Str Yield Str Elong Hardness


(MPa) min 0.2% Proof (% in 50mm) Rockwell B Brinell (HB)
(MPa) min min (HRB) max max

Values 515 205 40 95 217

78
5.2.1.3 Physical properties

Table 37: Typical physical properties for 316 grade stainless steels. (AZoM.com, 2015)

Density Elastic Mean Co-eff of Thermal Thermal Specific Elec


3
(kg/m ) Modulus Expansion (m/m/ Conductivity heat Resistivity
(GPa) (W/m.K) 0-100 (n.m)
0-100 0-315 0-538 At 100 At 500 (J/kg.K)
o o o o o
C C C C C
8000 193 15.9 16.2 17.5 16.3 21.5 500 740

5.2.2.4 Advantages

Stainless steel type 316 suitable for atmospheric environments and many corrosive media.
Good oxidation resistance in intermittent service to 870C and in continuous service to
925C. Continuous use of 316 in the 425-860C range is not recommended if subsequent
aqueous corrosion resistance is important. For solution treatment, equipment can heat to
1010-1120C and cool rapidly. But this type of steel cannot be hardened by thermal treatment
and it also good in weldability by all standard fusion methods.

79
5.3 EQUIPMENT ITEM

5.3.1 Equipment of pin rotor machine

5.3.1.1 Rotator shaft

Rotator shaft consist of solids cylinder which are fitted with two rows of pins. The function
of rotator shaft is to produce mechanical work by rotating inside the machine. The pin is to
improve or to make it more efficient throughout the process. The dimension of the rotator
shaft is 87.5 mm of inner diameter and 250 mm of outer diameter with 600 mm long. The
materials used to make rotator shaft is stainless steel grade 316.

Figure 12: Rotator shaft with 2 rows of pins.

5.3.1.2 Cylindrical vessel

Cylindrical vessel is the main body of the pin rotor machine. It consist of 2 rows of pins that
mounted on the inside wall of the cylindrical vessel. The outer diameter of cylindrical vessel
is 360 mm with inner diameter of 250 mm. The length of cylindrical vessel is 600 mm.
Cylindrical vessel used stainless steel grade 316 as main materials.

80
5.3.1.3 Pins

Pins can be found in both major equipment of pin rotor machine. Dimension of the pins in the
rotator shaft and cylindrical vessel are same to make sure they can fits with each other during
rotating process. Pin have diameter of 20 mm with length of 68.75 mm. When rotator shaft
rotated inside the cylindrical vessel, both rows of pins on the vessel and shaft will
simultaneously moves between each other. This mechanical work can gives structure of the
margarine be more plasticity, consistent and high in spreadability.

5.3.1.4 Motor

Pin rotor machine operated by using electrical supply where motor is used to move the rotator
shaft. Gear motor is electrical motor with a combination of electric motor and gearbox. One
of the advantages of gear motor is it can lower the speed of motor and increasing the output
torque. The power needed for motor to move the rotator shaft is 7.5 kW.

5.3 ANALYSIS COSTING OF INDIVIDUAL PROCESS UNIT

According to (Equipment, 2015), the costing for the whole pin rotor machine including
the minor equipment is about $2,500.00 which is equal to RM 10983.88. The pin rotor
machine can be varies depending on their type and dimensions. The prices of the pin rotor
machine also vary with the type of the pin rotor machine.

https://www.bid-on- equipment.com/Item/162558~VOTATOR+44645+Pin+Worker+B+Unit.htm

81
5.4 MECHANICAL DRAWING

Figure 13: Cross sectional of pin rotor machine


82
Figure 14: Front and side view of pin rotor machine

83
CHAPTER 6

PROCESS INTRUMENTATION AND CONTROL (PID)

Piping and instrumentation drawing (P&ID) is the type of process engineering drawing that
describe all major and minor equipment that involved in process design. Main function of
P&ID is to show or illustrate the process flow, instalment of instrument and equipment.

P&ID should include:

Instrumentation and designations;


Mechanical equipment with names and numbers;
All valves and their identifications;
Process piping, sizes and identification;
Miscellaneous - vents, drains, special fittings, sampling lines, reducers, increasers and
swagers;
Permanent start-up and flush lines;
Flow directions;
Interconnections references;
Control inputs and outputs, interlocks;
Seismic category;
Interfaces for class changes;
Quality level;
Annunciation inputs;
Computer control system input;
Vendor and contractor interfaces;
Identification of components and subsystems delivered by others;
Intended physical sequence of the equipment;
Equipment rating or capacity.

84
P&ID should not include:

Instrument root valves;


Control relays;
Manual switches;
Primary instrument tubing and valves;
Pressure temperature and flow data;
Elbow, tees and similar standard fittings;
Extensive explanatory notes

6.1 DESIGN OF PLANT CONTROL SYSTEM

In this project, we need to make sure the each process being control to assure the quality of
the product. The control system can be very important when there has crucial process that
need to pay more attention to it. It is also very applicable and easy to use rather than manual
methods. The person who is in charge in control system needs to know the process flow and
all instrument used. Besides, the quality and other assurances can be assured from using this
control system. For this project, we are used PID system which is proportionalintegral-
derivative (PID) controller system. Advantages of PID are its very effective in a wide range
of operating conditions, their functional simplicity and how easily engineers can implement
them using current computer technology.

The system need to be used before, during and after margarine production process. Before
margarine process, make sure the equipment, raw materials and other instrumentation are
ready to be used and in perfect condition.

85
6.1.1 Start-up procedure of pin rotor machine

Before margarine process start, operators need to make sure that the equipment was cleaned
and ready to be used. The motor operated smoothly and the other instrument in good
condition. Moreover, make sure the installation of the shaft into the cylindrical vessel is in
the right direction so that they can rotate simultaneously without crashed with each other.

The margarine will flow from scraped heat exchanger to the pin rotor machine by using
pump. The machine will started when margarine being transferred into the machine. During
the kneading process, the temperature of the margarine was recorded from the temperature
sensor that mounted on the pin rotor machine. The machine also equipped with the speed
indicating control that can control the speed of the machine to a desired condition which is
from 50 to 300 rpm.

6.1.2 Shut-down procedure of pin rotor machine

Our factory production hour is about 18 hour per day. The shutdown of the pin rotor machine
will occurs after margarine process. During cleaning, pin rotor machine will operated as usual
to make sure all part of the pins will be cleaned during cleaning process.

Problem occur during process

Problem regarding the machine could occur any time before, during or after the margarine
process. The problem may be related to the power supply, equipment itself and product of
margarine.

6.1.2.1 Power supply problem

If there no power supply during the production process, the machine needs to make sure
being shut down to prevent from short circuit or any accident from happen. Operator need to
make sure to close the valve and product inside the pin rotor machine being discharge or
discard manually.

86
6.2 INDIVIDUAL AND OVERALL PID

PID of the pin rotor machine consists of main equipment of kneading process which is pin
rotor machine. The minor equipment consists of valve, and pipe line for production of
margarine. The instrumentation involve in this process are temperature indicator and flow
controller.

Figure 15: PID of pin rotor machine

87
Figure 16: PID of margarine process (Production line)

88
Figure 17: PID of margarine process (Heat integration line)

89
Figure 18: PID of margarine process (CIP line)

90
6.3 INDICATION OF CONTROL SYSTEM

6.3.1 Temperature Indicator (TI)

Temperature indicator is designed to monitor and analyse the temperature and equipped
with integral sensor. This is to ensure that the final temperature of the margarine is in the
acceptable range. The range temperature of margarine during kneading process is about 26.
The operator needs to collect temperatures as a permanent record due to government or
manufacturing requirements. It also can provide as data that may later be used to determine
problems within a system. Temperature indicator also equipped with communication
interface which is can be controlled remotely by a computer. In our case, temperature
indicator is mounted by panel mount. Temperature indicator will measure temperature of
margarine during kneading process.

6.3.2 Speed Indicating Controller (SIC)

Speed indicating controller is mounted near the motor of pin rotor machine. This is to ensure
and control the speed of the pin rotor machine during kneading process. The desired range of
speed value is about 50 to 300 rpm.

6.4 LOCATION AND DESTINATION OF THE CONTROL EQUIPMENT AND


MATERIAL BEING CONTROL

6.4.1 Temperature Indicator


Temperature indicator is located at the pin rotor machine to measure and monitors the
temperature of margarine inside the pin rotor machine during kneading process

6.4.2 Speed indicating controller


Speed indicating controller is located at the motor of the pin rotor machine to measure and
control the speed of the machine according to the range given.

91
CHAPTER 7

SANITARY DESIGN OR CLEANING IN PLACE (CIP) AND SAFETY


CONSIDERATION.

7.1 SANITARY DESIGN / CIP


There are 7 basic principle of sanitary design according to the USA document of Food
Processing 1964/5 and Food Processing catalogue 1965/5.

1. All surface in contact must be inert to the food and must not migrate or to be
absorbed by food
2. All surface in contact with food must be smooth and non-porous so that tiny debris
(leftover food, bacteria, insect etc) are not caught, thus becoming potential source of
contamination.
3. All surfaces must be visible for inspection or the equipment must be readily
disassembled for inspection.
4. All surfaces must be readily accessible for manual cleaning.
5. All surfaces must be self-emptying/self-draining.
6. Equipment design must protect the content from external contamination.
7. The exterior surface must be arranged to prevent harbouring from soil, bacteria and
pest.

7.1.1Cleaning-In-Place (CIP)
Cleaning-in-place (CIP) system is a part of the modern margarine production facility
that prevents bacteria growth and assures sanitary equipment conditions. Cleaning is needed
to prevent any physical, biological and chemical hazards from contaminating the margarine
and to ensure the safety and cleanliness of the margarine. Cleaning-in-place usually involves
recirculation of the liquids through the food processing equipment in a continuous circuit
with a rinse and detergent solutions at proper concentrations, temperature, pressure and time.
The usual CIP solutions used include water, acids and alkali. Alkali is usually used to reacts
with the fats in the soil and softens it for removal while acid is used to remove the minerals
present and is usually used in dairy industries to remove milk residues.

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However, we are not using acid and alkali as CIP cleaning agent in our margarine
plant due to several reasons. Firstly, due to the facts that margarine contains very little
amount of minerals since it consists mainly of oils and fats, acid cleaning agent is not needed
for the cleaning of margarine processing equipment. Secondly, in food industry, the presence
of chemicals in the products will cause food-poisoning or even death when consumed by the
consumers. Therefore, if possible, this type of chemical cleaning agent should be avoided to
prevent the possible accumulation of cleaning agent residue in the food processing equipment
and will cause contamination.
Furthermore, chemical cleaning agents such as caustic soda and phosphoric acid are very
expensive and a large amount of these chemicals will increase the capital cost of our plant.
Therefore, instead of using chemical cleaning agents, our plant is using hot palm oil
and hot water for cleaning our margarine plant. This cleaning method is now practicing in
Sime Darby Jomalina Sdn Bhd in the production line of margarine. The use of palm oil and
water for cleaning is due to their availability. Malaysia is one of the largest palm oil producer
and exporter and thus it is not a problem to obtain palm oil for our margarine plant.
Furthermore, palm oil is also one of the main ingredients of our soft table margarine, thus
there is no extra expenses for purchasing those expensive chemical cleaning agents. This goes
same to the water since it is readily obtainable from natural environment.
The layout for our CIP set is to have three tanks to store palm oil, water and return of
the CIP solutions. The tanks are usually round with a conical bottom, made of stainless steel.
All pipes and fittings must be made of stainless steel as well, and must fulfill sanitary food
processing requirements.
Generally, our CIP process incorporates three steps:
1. An initial rinse with hot palm oil
Rinse with palm oil at 60C for about 15 minutes to remove the residue of margarine
accumulates in the food processing equipment and pipelines.
2. Intermediate rinse with hot water
Rinse with water at 70C for about 10 minutes for extra cleaning of the equipment and
pipelines.
3. Final rinse with hot palm oil
Rinse with palm oil again at 60C for about 15 minutes to remove the remaining water
in the equipment and pipelines.

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The flow rate of CIP solution entering the equipment for CIP process is very
important since it affects the efficiency of cleaning. Process plant should always be cleaned
under turbulent flow conditions. The efficiency of cleaning under laminar flow conditions
(<1.4m/s) is not sufficient. Therefore, flow velocities in the range of 1.5 m/s to 2.1 m/s are
usually applied. The use of high velocity also improves the cleaning efficiency in small dead
legs such as instrumentation or valves. It also reduces the time required for the cleaning
process. Excess flow velocities of >2.1 m/s are considered not beneficial.

The residual CIP solution is then stored in the CIP residue tank where it will be sold
and sent to refinery plant for oil refinery to become cooking oil. This method not only can
help to remove margarine residue in the equipment but also can gain extra income for selling
the residue of CIP solution.
The CIP system operates once two batch of margarine is processed. 40 minutes is needed for
each cleaning process to be completed. The product microbial content will need to be
checked on daily operating basis thereafter. The baseline for the safe level of the microbes in
the product must be set up and followed.

7.2 INDICATION OF SAFETY AND ENVIRONMENT ISSUES

Environmental issues associated with the production and processing of margarine in


margarine plant include waste water, energy consumption and atmospheric emissions.
Margarine processing plant requires a significant amount of water for steam supply in boiler,
preparation of aqueous phase and also subsequent washing in cleaning-in-place (CIP) system.
Due to the high consumption of water in processing and cleaning, margarine plant generate a
large amount of waste water which may have a high content of organic material and
,subsequently, a high biochemical oxygen demand (BOD) and chemical oxygen demand
(COD).
The waste water may also have a high content of organic nitrogen, oils and fats and
suspended solids. General recommendations to reduce water consumption, especially where it
may be a limited natural resource, are provided in the General Environmental, Health and
Safety (EHS) Guidelines. One of the ways to reduce water consumption is recover and reuse
the condensate from heating process such as pasteurization.

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The waste water treatment is also another recommendation to treat the process waste water
and reuse the treated water in the margarine plant. Besides that, margarine processing
facilities consume energy to heat water and produce steam both for process application and
cleaning processes. Other energy consumption systems include the refrigeration and
compression.
Therefore, different methods of reducing energy consumption can be recommended and
implemented. Direct process heat integration is one of the ways to reduce energy
consumption. Process heat integration means the heat that was previously cooled off is
recovered and reused in another unit operation.
For example, the ammonia used to cool the margarine product can be used to transfer the heat
to the steam for heating processes such as mixing and emulsification. With direct process
heat integration, the load on both the heating and cooling utility systems can be reduced.
Furthermore, margarine processing plant which makes use of auxiliary boiler for the
generation of steam energy will cause emissions of combustion byproducts such as nitrogen
oxides, carbon dioxide and carbon monoxide. This emission is undesirable and therefore
there is a need to increase energy efficiency such as insulating the steam, water and air pipes
to reduce energy consumption.
On the other hand, occupational health and safety issues associated with the
margarine plant which include physical and chemical hazards are also a concern that has to
be taken care of. The workers and operators in margarine facilities may expose to the
chemicals typically in chemical-handling processes such as maintenance of cooling system
involving ammonia and others. Chemicals can be hazardous and extra care has to be taken.
Hence, ventilation is provided especially at workstation devoted to raw materials handling
and maintenance room. This can reduce the inhalation of the chemicals and lower the risk of
chemicals to human health.
Physical hazards in margarine production and processing facilities are similar to those
present in other industry sectors as well. Physical hazard in margarine plant includes
exposure to same-level fall hazard due to slippery conditions, especially at workplace which
involves the handling of oils such as oil storage and preparation of fat phase room.
Hence, it is important to maintain working space is clean and dry and provide workers with
the anti-slippery footwear. Moreover, the operators in margarine plant are also exposed to
noise from internal transport, boilers, pumps and various processing equipment. Therefore,
there is also a need to provide personal protective equipment (PPE) such as hearing
protection to the workers and operators for their safety assurance.

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Workers can also be exposed to injuries due to repetitive work such as lifting and carrying
heavy load of raw materials. This may result from the poor working posture and also limited
workspace where the carrying work is done.
Therefore, the use of mechanical equipment such as forklift trucks to handle the heavy load is
recommended. The margarine plant has to ensure a wide workspace is provided for the
workers to reduce any physical injuries.

7.3 SAFETY EQUIPMENT

All the equipment used for the production of margarine is made of stainless steel. This
is due to the reason that stainless steel is resistant to corrosion and long lasting.
For the safety purpose, pressure relief valve is installed at the equipment such as
scraped surface heat exchanger. A pressure relief valve is a safety device designed to protect
a pressurized system during overpressure event. The relief valve is designed or set to open at
a predetermined set pressure to protect the equipment from being subjected to pressures that
exceed their design limits. When the set pressure is exceeded, the relief valve is forced open
and a portion of the fluid diverted through the auxiliary route. This is essentially important
because if the pressure within the equipment is too high, explosion may occur and this will
bring huge damage and impact to the personnel and the plant as a whole.

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7.4 HAZOP STUDY

7.4.1 Introduction

A hazard and operability (HAZOP) study is a structured and systematic examination of a


planned or existing process or operation in order to identify and evaluate problems that may
represent risks to personnel or equipment, or prevent efficient operation. HAZOP is a form of
hazard identification used to identify potential hazards and operational problems in terms of
plant design and human error. A HAZOP involves a systematic and detailed review of a
process by a multi-disciplined team, preferably led by an experienced person independent of
the facility being studied. For a process plant, it involves studying the process line by line, the
equipment item by item and the plant as a whole. The HAZOP uses a brainstorming approach
around a series of guide-words designed to qualitatively identify possible deviations from
normal operation and their respective impacts. Responsibilities are assigned to investigate
possible solutions for each problem found.

7.4.2 HAZOP Prerequisite

As a basis for the HAZOP study the following information should be available:

a) Process flow diagram (PFD)

b) Piping and instrumentation diagram (P&ID)

c) Layout diagrams

d) Material safety data sheets (MSDS)

e) Provisional operating instructions

f) Mass and energy balance

g) Equipment data sheets start-up and emergency shut-down procedures

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7.4.3 HAZOP Terminology
Table 38: HAZOP terminology (Kancherla, 2015)

Term Definition
Study Nodes Section of equipment with definite boudaries within which process
parameters are investigated for deviation. The location on PID at
which line process parameters are investigated for deviation.
Operating steps Discrete actions in a batch process or a procedure analyzed by a
Hazop analysis team. May be manual, automatic or software-
implemented actions. The deviation applied to each step are
somewhat different than the one used fo a continous process.
Desing intention Definition on how the plant is expected to opertae in the absence of
deviations. Takes a number of forms and can be other descriptive or
diagrammatic.
Guide Words Simple words that are used to qualify the design intnetion and to
guide and stimulate the brainstorming process for identifying
process hazards.
Hazard A source or situation with the potential to harm, including ill heath,
injury or death, damage to property, plants, poducts or the
envirnment, production losses or increased liabilties.
Proces parameter Pyhsizal or chemical property associated with the process includes
general terms such as reaction, mixing, concentrations, pH and
specific items such as temperature, pressure, phase and flow.
Deviations Departures from the design intention that are dscovered by
systematically applying the guide words to process parameters for
each process section.
Causes Reasons why deviations might occurs. once deviation has been
shown to have a credible cause, t can be called as a meaningful
deviation. These causes can be hardware failures, humans errors,
unanticipatted process sates.
Consequences Results of deviations. Normally, assumes active protection system
fail to work. Minor consequences, unrealted to study, objectives, are
not considered.
Safegurads Engineered sytems or administrative controls designed to prevent the
(protection) causes or imitigate the consequences of deviations.
Actions Suggestion for design changes, procedured changes or areas for
( recommendation) futher study.

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Table 39: Guide Words of HAZOP study (Kancherla, 2015)

Guide word Meaning Comments Example


No, not, none The complete No part of the design intention is No flow
negation of achieved, but nothing else happens.
More, Quantitive increase Applies to a quantities such as flow More flow
higher, rate and temperature as well as
greater activities like heat and reaction
Less, lower Quanttive decrease Same as above Less flow
As well as Qualitative increase All the design and operating intentions Something
are achieved along with some else with the
additioanal activity. flow
Part of Qualitative decrease Only some of the design intentions are Partial flow
achieved, some are not
reverse The logical opposite Most applicable to activities sucah as Reverse
of flow or chemical reaction. flow
Other than Complete No part of the original intention is Something
substitution achieved, the orignal intention is else flows
replaed by something else.
Sooner thab Too early or wrong Applies to process steps or actions Flow startes
order early
Later than Too late or in wrong Applies to process steps or actions Flow started
order late
Where else In additional Applies to process locations or Flow goes
locations locations in operating procedures. some other
place

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7.4.4 HAZOP Procedures

There are several steps included in the HAZOP which are shown below:

Select HAZOP team leader

Define the purpose and scope of study

Select the team

Prepare for the study

Carry out the team review

Record the results

Follow up to ensure the results are implemented

Figure 19: Procedure of HAZOP

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7.4.5 HAZOP Analysis

7.4.5.1 P&ID with Node Marking


Figure 20: P&ID with Node Marking for HAZOP Analysis

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Table 40: HAZOP Study of kneading process

HAZOP Review
Project Kneading Process of Pin rotor machine
title
Study Process Guide Possible causes Consequences Actions
nodes parameter word
5 Temperature Low No adverse effect
High Temperature Increasing in Install
controller fail temperature of temperature
margarine product indicator
Speed Low Malfunction of Less mechanical Install speed
speed controller working applied indicating
to the margarine controller
product
High Malfunction of Excess Install speed
speed controller mechanical indicating
working controller

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7.5 MSDS (Materials Safety Data Sheet)

A material safety data sheet is detailed information prepared by the manufacturer or


importer of a chemical that describes the physical and chemical properties, physical and
health hazards, routes of exposure, precautions for safe handling and use, emergency and
first-aid procedures, and control measures. It serves as an important component of product
stewardship and occupational safety and health.

Employers have the responsibilities to ensure that each employee has a basic
knowledge on how to find information on an MSDS and how to make use of the information
properly. Employers also have to ensure a complete and accurate MSDS are available during
each work shift to employees when they are in their work places. A complete MSDS contains
all information for each hazardous chemical used in processing. The employer also have to
provide training to the employees on the physical and health hazards of the chemicals in the
workplace, the measures they can take to protect themselves, and emergency procedures for
purposes such as cleaning up a spill or release of chemicals.
The MSDS for main raw ingredients used for margarine production are shown as
below:
Palm oil
Organic palm stearin
Soybean oil
Water
Chlorine

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CHAPTER 8

PLANT LOCATION AND LAYOUT

8.1 LOCATION

Choosing the right location for plant can gives a lot of benefits to the company. One of the
benefits is to maximize the profits by minimizing the total cost of production associated with
the production process. Its important for profitability of a project and the scope for future
expansion. There a few factors that contributes in choosing of plant location.

1. Proximity to market
2. Integration with other parts of the organization
3. Availability of labor and skills
4. Availability of amenities
5. Availability of transport
6. Availability of inputs.
7. Availability of services
8. Suitability of land and climate.
9. Regional regulations
10. Room for expansions
11. Safety requirements
12. Site cost
13. Political, cultural and economic situation
14. Special grants, regional taxes and import/export barriers

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8.1.1 Westport, Port Klang, Selangor

Our suggested place for our plant is at Port Klang in Selangor. Port Klang is the
largest port in the country and main gateway by sea into Malaysia. It is located on the western
shores of Selangor state on the Klang river off the on the Strait of Malacca.

Port Klang is located about 6 kilometers southwest of the Klang Town, 38 kilometers
southwest of Kuala Lumpur, 278 kilometers southeast of the Port of Penang, and 332
kilometers northwest of the Port of Singapore. Currently, Port Klang is being developed as
the National Halal Load Centre, eventually a hub for the region, and gateway to Asia Pacific.
There are three port terminals in Port Klang that privately owned and managed which are
Northport, Westport and Southpoint. Northport is Malaysias largest multi-purpose port
operator which handling 60% of nations trade, while Westport is conventional terminal that
ranks among the worlds top 10 ports in term of state-of-the-art infrastructure and facilities.
Southpoint is handled cargo such as vehicles and machineries and offers itself as a customs-
free cargo consolidation center for re-shipment of cargoes shipped.

Figure 21: Three different section of Port Klang

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In addition, the Port Klang is a free zone area. The projects of Port Klang Free Zone
(PKFZ) had been developed by government to transform Port Klang into a cargo center and
regional distribution in 1990. A free zone is an area that has assigned to it under Section 2 of
the Customs Act 1967, Excise Act 1967, Sales Tax Act 1972, and Service Tax Act 1975.
Goods and services of any description are subject to this act, unless those specifically and
absolutely prohibited by law, may be brought into, manufactured or supplied in a free zone
without payment of any customs duty, excise duty, sales tax or service tax. Port Klang
Authority was assigned as the Free Zone Authority to administer the Free Zones (Northport,
Westport and Southpoint) in Port Klang. Port Klang Free Zone (PKFZ) is an integrated 1000
acre international cargo distribution and consolidation centre situated on Pulau Indah, Port
Klang.

Based on three ports in Port Klang which are Northport, Westport and Southpoint, we
choose Westport as our location. Westport is owned and managed by Westport Malaysia Sdn.
Bhd. and located on the Pulau Indah Island. Westport has transformed the islands natural
swamplands and sands into a multi-cargo seaport terminal. We choose Pulau Indah Industrial
Park at Westport, Port Klang as our plant location because it is evaluated in terms of all the
factors in choosing of plant location which are the availability of raw materials, services,
transportation, amenities, labor and skills, proximity of market, and suitability of land and
climate.

Figure 22: Overview of Pulau Indah, Westport, Selangor

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Firstly, our consideration is on the sustainability of land and climate. The land area of
plant location at Pulau Indah Industrial Park is a rectangular shaped and flat land stretching
over 2 acres which is equivalent to 87120 square feet and offered for sale as a whole at a rate
of RM58.00 per square feet. The total value price for this land is RM 5,052,960.00, within the
finance margin 90%, interest rate 6.85% and 35 years of terms of loan, the monthly payment
for this land is RM28, 576.22. The location of our plant is at industrial base where it is a
strategic location for cost savings and high returns and also offers unrivalled convenience and
functionality supplying many infrastructures like water, electricity and telecommunication
facility. The characteristic features of the climate of Westport are uniform temperature and
average humidity. Therefore, Pulau Indah, Westport has a good sustainability of land and
climate.

Next, the availability of raw materials is also important in order to choose the best
location for the plantation. To find the feasible location for our plant, the distance between
plant location and source of raw materials must be near for reduced the transportation and
storage costing. The raw materials for our margarine production are palm oil, palm olein oil,
palm stearin oil, palm kernel oil and soya bean oil. These raw materials can be obtained from
Mewaholeo Industries Sdn. Bhd at Pulau Indah Industrial Park which used new technology in
refining palm oil. This company is one of the largest palm oil processor in the world with
total daily refining capacity of 8, 000 MT per day or 2.8 million MT annually.

Mewaholeo Company produces palm oils, soft oils and lauric oils. Palm oils products
are including palm oil, palm olein, palm stearin and palm fatty acid distillate, and products
soft oils are soya bean oil, sunflower seed oil, corn oil and soya bean oil, while palm kernel
oil and coconut oil are lauric products. All of our main raw materials are produced by this
company, so it is easier for our company to get supply of raw materials. This company
accredited by ISO and HACCP. Moreover, the distance of plant location and Mewaholeo
Company is very near which about 2.9 km and approximately 5 minutes by driving via Jalan
Sungai Pinang 4/1.

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For the skim milk powder, we can get the source from Active Energy Ventures Sdn.
Bhd. at Petaling Jaya. This company produced variety of products including full cream milk,
cheese, cream milk and also skim milk powder. The distance of our plantation and this
company is about 40 km in 38 minutes via KESAS/E5 and Pulau Indah Hwy/Route 181. The
other option is to import the skim milk powder from Singapore or Indonesia. Our plant
location is near by the Westport, so it is easier to import the raw materials. Therefore, the
availability of transport is very important before choosing the appropriate plant location and
the transportation should be done with a great care and faster.

Figure 23: Distance from plant location to sources of raw materials.

Our location plant is found to be ideal as it is located in a designated industrial, thus,


the availability of transportation, amenities and services such as energy, electricity, gas,
water, road network, drainage, disposal waste and communications are well prepared. The
detail road linkage system existing in order to provide easy access to every point Pulau Indah
Industrial Park and direct access to highways and also Pulau Indah KTM is about 3 km from
the plant location offers an alternative form of commuting. The major highways including
Lebuhraya Pulau Indah, Shah Alam Expressway (KESAS Highway) as well as the proposed
South Klang Valley Expressway for a smooth journey to Shah Alam, Petaling Jaya and Kuala
Lumpur.

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In addition, our plant location is strategic as we can use both, sea road and land road.
The location is also near to the port; hence, it is easier for us to import the raw materials and
exported our products to other country. For the electricity, the current capacity in Pulau Indah
is 275/132KV with main distribution at 33/11KV and transformer capacity at 11/0.433KV.
While, total water capacity in Pulau Indah is 92.0 ML per day.

Furthermore, our consideration is in the proximity of market areas. The market


location or intermediate distribution centers would give effect toward the cost of product
distribution and the time required for product distribution. Basically, any organization may
choose their plant location not only near to the source of raw material but also choose to
locate facilities to their market. It is because to minimize transportation cost and provide a
better service. Our plant located at Westport, Port Klang, hence it is easier for us to distribute
our products to the markets area in Selangor, Kuala Lumpur, Negeri Sembilan and Malacca
as well as other states. Now, halal products are highly demand with substantial numbers of
Muslim, thus, we can take this opportunity for the future expansion to do the exportation for
the Middle East which is Singapore and Indonesia.

Availability of labor and skill is also one of the factors of selecting an appropriate
plant location. The local population must be capable of supplying a sufficient number of
qualified workers or trainable workforce should ideally reside nearby. We also decide to
bring in workers from outside to work and live onsite. Pulau Indah is surrounding with
facilities such as hospitals, shopping malls, universities, yacht club and recreational club.
With this great facilities located at Pulau Indah, the workers can reach all conveniences. Due
to these cultural facilities which are important for a progressive community, the sustainability
in man power can be maintained.

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8.2 PLANT LAYOUT
Figure 24: Plant layout of the margarine plant

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Figure 24 shows plant layout design for our margarine plant. Our margarine plant is
surrounded by fence to keep our plant area is not encroached upon. Besides, there is a guard
house in front of the main gate to record entering of the vehicles and also to keep the safety
of the plant. Our margarine factory is located at the middle of the plant. All the processing
will be carried out in the factory starting from the reception of raw materials until the storage
of finished products. Planning the flow of materials is important because with a plan, we
would most likely be aware of the location of equipment in the factory. With this
information, better control of the factory can be achieved.

A flow pattern for our margarine processing is U-flow, which it is very popular as a
combination of receiving and dispatch. Products flow in at receiving, move in to storage, and
then to shipping, which is located at the adjacent to receiving on the same side of the
building. Our margarine plant also provides the facilities for the employees such as employee
room, toilet, prayer room, court and caf. After working hour, the employees also can do
some recreation or sport at court provided. The facilities provided will make employees
working in good mood and environment, thus, their work become more efficient.

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CHAPTER 9

WASTE TREAMENT

9.1 WASTE TREATMENT PLANT

9.1.1 Introduction

Every food plant will produce waste whether from the raw materials or from the cleaning-in-
place, CIP process. Same goes as margarine plant, margarine product consist of 80 % of
vegetables oils and about 20% of water and minor ingredients. Generally, waste that involve
in margarine plant is wastewater that composed of fats, oils and other minor ingredients. The
oil and fats waste comes from production process where about 5% waste produced from
process. Wastewater contributes large scale in waste of margarine plant because of the
production process and CIP process that required a lot of water.

Source of waste of margarine plant:

1. From CIP cleaning process.


2. From storage and handling process of raw materials where accidental spills, leakage
and pump failure.

Content of the wastewater not only consist of water but it also contain high concentration of
oils, fats and other minor ingredients that accumulated in the wastewater. The wastewater has
high biochemical oxygen demand (BOD) and chemical oxygen demand (COD) due to the
content of the waste. Moreover, the waste content in the wastewater will change the
properties of the water in term of physical and chemical. Physical change is fat and oils layer
formed on the surface of the wastewater and cause a significant pollution problems, such as
reduction of light penetration and photosynthesis process. Wastewater need to be treating
before being discharge or reused according to the standard guide that implemented by
government.

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Table 41:The physicochemical characteristics of wastewater from vegetable oils industries.
(Mohapatra.P.K, 2006)

Wastewater type pH BODs (g/l) COD (g/l) Lipophilic substances


(mg/l)
Fat processing 6-7 2.0 4.0 5 10 <100
Oils refining 5-9 0.3 0.4 0.6 1.0 <600
Margarine production 5-9 0.6 1.0 1.0 2.0 <250

According to (Mohapatra.P.K, 2006), wastewater for margarine production only involve from
cleaning circuits of the CIP plants and amount to approximate about 1 to 3 m3/t of margarine.
After cleaning process, the wastewater will flow to the fat separator. Amount of average
BOD of wastewater is about 0.8 g/l and COD /BOD ratio of 2.0. Wastewater of margarine
plant has high concentration of lipophilic substances.

Food industry must follow the requirement that standardized by government when discharge
the wastewater. The design value of treatment plant can be obtained from the national water
services commission. Waste treatment shall be designed to produce final effluents with
parameters values less than or equal to the design effluent values. This is to ensure a high
degree of consistent compliance with the required effluent standards.

Table 42: Design Influent Values (Comission, 2015)

Parameter Value (g/capita.day) Value (mg/t)


Biochemical Oxygen Demand (BODs) 56 250
Suspended solids (SS) 68 300
Chemical Oxygen Demand (COD) 113 500
Total Nitrogen (TN) 11 50
Ammoniacal nitrogen (AMN) 7 30
Total Phosphorus (TP) 2 10
Oils and grease (O&G) 11 50

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9.1.2 Wastewater treatment process description.

There are few steps or procedure for wastewater treatment in margarine plant.

i. Preliminary treatment ( screen bar and grit chamber)


ii. Primary treatment ( settling tank or clarifier)
iii. Secondary treatment:
Aeration basin
Secondary clarifier or sedimentation tank
iv. Final treatment (disinfection)

The first step is preliminary step which consist of physical treatment by using an object to
eliminate the waste. In our margarine plant, we will use screen bar to eliminate undesirable
objects such as large particle of grease or fats from wastewater. After that, the wastewater
will be transfer to the grit chamber by force of gravity. In the grit chamber, large solid
particle which is inorganic particles that cannot be removed through screen bar are settled at
the bottom of the tank. Then, large solid particle will be removed from the tank.

After that, primary treatment started by moving the water to a clarifier or settling tank.
The flow is in calm condition where the solid particle that cannot be removed through
preliminary treatment will settle to the bottom of the tank. Not all of the solids are removed
here in the primary clarifier because very small, light particles take too long to settle. The
solids that collect at the bottom of the tank are called primary sludge and are pumped from
the tank for treatment elsewhere in the plant by using sludge scrapper. On the other hands, the
oil, fats and grease (FOG) that floated on the surface of wastewater will undergo mechanical
process by using skimmer.

In secondary treatment, less concentration of solid particle of wastewater will moved to


the aeration basin. It also can be called as biological treatment where microorganism will
grow to help in removing waste. Ejection of air is required to provide oxygen supply to the
microorganism to grow. Microorganisms in this aeration tank use the dissolved and
particulate organic matter as food, producing more microorganisms. Thus the waste materials
that left the primary clarifier are changed into microorganisms which can be collected and
separated from the water in the next step.

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Next, in secondary treatment for second part, the clean water can be produced by which the
removing of microorganism. The operation is same as the primary clarifier where the solid
particle will settle at bottom of tank and the FOG floated on the surface are removed. Some
of the solid sludge will collected and sent back to the aeration tank for treatment process. The
clean water that flows out the top of the clarifier is sent along for disinfection.

Last process of wastewater treatment is by disinfection the water before discharge to


the environment. Disinfection process is to kill microorganism that might cause health hazard
to consumer. This process can be done by adding chlorine to the water. Then, treated
wastewater effluent can be discharged to rivers or lakes.

For the solid disposal, most of the solid waste that collected from wastewater is fats,
oils, and grease. Our plant does not treat solid waste but we sell the fats containing waste to
the oil-recycling companies. Oil- recycling company that are near with our plant is Topmark
Petroleum Products Sdn Bhd that located at Kawasan Perindustrian Pulau Indah 42920
Pelabuhan Klang, Selangor.

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9.2 PROCESS FLOW DIAGRAM OF WASTE TREATMENT

Wastewater

Bar Screen

Grit
Chamber

Primary
Sludge
Clarifier

Sludge were sell to oil-


Aerated recycling company
Tank Recycled
sludge

Secondary
Clarifier Sludge
Wastewater

Chlorine
Disinfection

Treated water
discharged

Figure 25: Process flow diagram of wastewater treatment of margarine plant.

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Screen Bar Grit Chamber Primary Clarifier

Secondary Clarifier Aeration tank

Disinfection chlorine tank Treated water discharged

Figure 26: Process of wastewater treatment of margarine plant. ( Frazer. A., Lapina. K.,
Whaley.A., & Muga.H., 2015)

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CHAPTER 10

ECONOMIC EVALUATION

10.3 OVERALL PLANT ECONOMIC ANALYSIS

10.3.1 Capital Cost

10.3.1.1 Fixed Capital Cost (Cf)

Fixed capital cost (CF) is the fixed investment needed to supply the necessary plant facilities
and is including the cost of designing, constructing, installation a plant and associated
modification.

CF = CF (ISBL) + CF (OSBL)

Assumptions:

1. () is assumed to be 40% of CF(ISBL).

() =

Where =purchased major equipment cost

= cost of equipment 4

= Lang factor

= 1.35 (min)

= 1.80 (most probable)

= 3.1 (predominantly solids)

= 3.6 (mixed solids-fluids)

= 4.7 (predominantly fluids)

129
Table 43: Equipment cost

Total
Equipment Capacity Price per unit (RM/unit) Quantity (RM)
Storage tank 1,500 L/day 18,022.3 1 18,022.3
(storage for oil) 5,000 L/day 27,244.1 1 27,244.1
8,000 L/day 36,607.83 1 36,607.83
30,000 L/day 63,874.82 1 63,874.82
Preparation tank (with agitator) 1,000 65,032.8 1 65,032.8
750 56,091 1 56,091
Mixing tank (with agitator) 1,000 65,032.8 1 65,032.8
CIP tank (SS 316) 1,200 15,724.8 3 47,174.4

Scraped surface heat exchanger - 83,789 3 251,367


Pin rotor machine - 144,260 1 144,260
Compressor - 33,515 1 33,515
Filling/Packaging machine - 69,132 1 69,132
Boiler - 2,368,000 1 2,368,000
Pipe (stainless steel ) 250m 20.36 250 5,090
Pipe (fiberglass for steam) 100m 14.95 100 1,495
Temperature transmitter - 428 9 3,852
Temperature controller - 171 9 1,539
Temperature indicator - 171 1 171
Level indicator controller - 1,070 3 3,210
Level alarm high - 1,284 3 3,852
Level alarm low - 1,284 3 3,852
Level sensor high - 1,135 3 3,405
Level sensor low - 1,135 3 3,405
Level transmitter - 770 3 2,310
Flow controller - 910 5 4,550
Pressure indicator - 214 3 642
Pump Storage tank 308.99 4 1,235.96
Water supply 153.49 1 153.49
Preparation step 463.28 2 926.56
High pressure 27,000.00 1 27,000.00
Total 3,312,043

130
Cost of equipment = RM 3,312,043

CF (ISBL) = (3,312,043 4) 3.6

= RM 47,693,419.20

40
CF (OSBL) = 100 RM 47,693,419.20

= RM 19,077,367.68

Therefore,

Fixed capital cost (CF) = RM 47,693,419.20 + RM 19,077,367.68

= RM 66,770,786.88

10.3.1.2 Contingency

Contingency charges allow for variations from the predicted cost estimate. The variations
include unexpected variations caused by change in economic scenario and scope, currency
fluctuations, labor disputes and others.

Assumptions:

1. Contingency is assumed to be 10% of fixed capital cost (CF).

Therefore,

10
Contingency = 100 RM 66,770,786.88

= RM 6,677,078.68

131
10.3.1.3 Home Office Cost
Home office cost includes cost for procurement, construction services, construction
supervision, project management, expenses, contractors fee and others.

Assumptions:

1. Home office cost is assumed to be 30% of fixed capital cost (CF).

Therefore,

30
Home office cost = 100 RM 66,770,786.88

= RM 20,031,236.06

10.3.1.4 Working Capital


Working capital cost (CW) is the cost we need to get our plant running.

Assumptions:

1. Working capital cost (CW) is assumed to be 10% of the fixed capital cost (CF).

Therefore,

10
Working capital cost (CW) = 100 RM 66,770,786.88

= RM 6,677,078.68

10.3.1.5 Other Costs

Land buildings (Rental land, buildings) = RM 1,359,072

Waste treatment = RM 44,269.42

Vehicle = RM100,000

Furniture & fixture = RM 90,000

Therefore,

Total other costs = RM 1,359,072+ RM 44,269.42+ RM100,000+ RM 90,000

= RM 1,593,341.42

132
10.3.1.6 Total Capital Costs

Total Cost

= Fixed capital cost (CF) + Contingency + Home office cost + Working capital cost (CW)+
Other costs

= RM 66,770,786.88 + RM 6,677,078.68 + RM 20,031,236.06 + RM 6,677,078.68 + RM


1,593,341.42

= RM 101,749,521.70

10.3.2 Operating Costs/Manufacturing Costs

10.3.2.1 Fixed Operating Cost

Fixed operating cost (CMF) refers to those costs that incurred regardless of the level of
production or the output rate. This includes labor cost, maintenance, insurance, taxes, royalty,
environmental charges and others.

CMF = Maintenance + Insurance/Taxes + Royalty + Labor cost (CLab) + Environmental charges

Assumptions:

1. Maintenance is assumed to be 5% of CF (ISBL).

2. Insurance/Taxes is assumed to be 2% of CF (ISBL).

3. Royalty is assumed to be 1% of fixed capital cost (CF).

4. Environmental charges are assumed to be 1% of fixed capital cost (CF).

5
Maintenance = 100 RM 47,693,419.20

= RM 2,384,670.96

2
Insurance/Taxes = RM 47,693,419.20
100

= RM 953,868.38

133
1
Royalty = 100 RM 66,770,786.88

= RM 667,707.87

1
Environmental charges = 100 RM 66,770,786.88

= RM 667,707.87

Table 43: Labor cost

Manpower Annual operating time Rate, CL Required No. Annual labor cost
(hour/year) (RM/hour) (RM/year)
General Manager 10,000 21 1 210,000
Accountant 2,700 16 1 43,200
Production Head 2,700 15 1 40,500
Chemical Engineer 2,700 12 1 32,400
Mechanical Engineer 2,700 12 1 32,400
Process Engineer 2,700 12 1 32,400
Electrical Engineer 2,700 12 1 32,400
Chemist 1,800 12 3 27,000
Skilled worker 1,800 12 6 129,600
Ordinary worker 1,800 11 21 415,800
Technician 1,800 11 6 115,200
Total 43 1,110,900

Labor cost, = RM 1,110,900

Therefore,

Fixed operating cost (CMF )


= maintenance + insurancetaxes + royalty + environmental charge + labor cost(CMF )

Fixed operating cost (CMF )

= RM 2,384,670.96 + RM 953,868.38 + RM 667,707.87 + RM 667,707.87 + RM 1,110,900

= RM 5,784,855.08
134
10.3.2.2 Variable Operating Cost ( )

Variable operating cost refers to the costs that increase in direct proportion to the
production volume. This may include costs for:

a) Raw materials

b) Utilities

i. Fired heater fuel


ii. Electricity
iii. Steam
iv. Cooling water
c) Consumables
i. Solvents
ii. Additives
iii. Acids and bases
iv. Packaging and delivery costs

= + +

Where; CMat = cost of raw materials

CPack = cost of packaging

CUtil = costs of utilities

135
Table 44: Raw materials cost

Raw materials Cost (RM/kg) Weight (kg/year) Raw material cost (RM/year)
Palm oil 2.53 885,927.8 2,241,397.33
Palm olein oil 2.60 1,771,856 4,606,825.60
Palm stearin oil 3.07 442,963.9 1,359,899.17
Soybean oil 2.41 1,328,892 3,202,629.72
Salt 0.45 143,963.3 64,783.48
Skim milk powder 8.05 20,487.08 164,920.99
Monoglyceride 3.71 16,611.15 61,627.37
Lecithin 3.53 27,685.24 97,728.90
Beta-carotene 0.37 166.1115 61.46
Vitamin D 3.71 110.741 410.85
Potassium sorbate 4.45 166.1115 739.20
Vitamin E 3.3 221.482 739.75
Citric acid 2.78 11,074.1 30,786.00
Total 11,832,549.80
Cost of raw materials, CMat = RM 11832549.80

Table 45: Packaging cost

Packaging Cost (RM/unit) Quantity (unit/year) Packaging cost (RM/year)


Plastic tub 3.00 10,800,000 32,400,000
Total 32,400,000

Cost of packaging, CPack = RM 32,400,000

Cost of utilities, Cutil

kWh RM 0.42 day


Electricity = 3,780 300 year
day kWh

= RM 476,280

136
m3 RM 2.27 day
Water = 950 day 300 year
m3

= RM 646,950

kg RM 3.6
Ammonia = 3824 year kg

= RM 13,766.40

Cost of utilities (Cutil ) = RM 476,280 + RM 646,950 + RM 13,766.40

= , , .

Therefore,
variable operating cost (CMV ) = Cmat + Cpack + Cutil

CMV = RM 11,832,549.80 + RM 324,00,000 + 1,136,996.40

= , , .

10.3.2.3 Overheads ( )
Overhead cost includes the expenses for sales. Plant overhead is usually 40-65% of total
labor cost

Assumptions:

1. Overhead is assumed to be 65% of total labor cost

Therefore,

65
Overheads (COVER) = 100 RM 1,110,900

= RM 722,085

10.3.2.4 Total Operating Cost/Manufacturing Cost ( )


Total operating cost/manufacturing cost (CM)

= Fixed operating cost (CMF) + Variable operating cost (CMV) + Overheads (COVER)

= RM 5,784,855.08 + RM 45,369,546.20 + RM 722,085

= RM 51,876,486.28

137
10.3.3 Summary Of Costing
Assumptions:

1. Financial analysis is based on year

2. Working day per year is 300 days per year

3. Capacity of margarine production is 18,000 kg/day

4. Each tub of 500g margarine is sold at the price of RM 8.00

5. There are some loss where taken as 5 % due to rejected tubs such as the broken tubs
and other cause.

6. Assume 20% taxes was charge

Total capital cost = RM 101,749,521.70

Annual operating cost = RM 51,876,486.28

Sales of products = RM 86,400,000

95
Sales of products with 5% loss = 100 RM 86,400,000

= RM 82,080,000

Sales of waste to refinery (annual) = RM 7,000

Gross profit = Sales of products with loss (Fixed operating cost + Variable operating cost)

= (RM 82,080,000+RM7,000) (RM 5,784,855.08+ RM 45,369,546.20)

= RM 30,932,598.72

20
Taxes = 100 RM 30,932,598.72

= RM 6,186,519.74

Net profit = Gross profit Taxes

= RM 30,932,598.72- RM 6,186,519.74

= RM 24,746,078.98

138
10.3.4 Payback Period

Table 46: An overall cumulative cash flow of a margarine plant for 10 years

Annual Annual Annual Tax Cumulative


Total Capital Operating Revenue Charge Net Cash Flow Cash Flow
Year Cost (RM) Cost (RM) (RM) (RM) (RM) (RM)
0 0
- -
1 101,749,521.70 101,749,521.70 101,749,521.70
2 51,876,486.28 82,087,000 6,186,519.74 24,023,993.98 -77,725,527.72

3 51,876,486.28 82,087,000 6,186,519.74 24,023,993.98 -53,701,533.74

4 51,876,486.28 82,087,000 6,186,519.74 24,023,993.98 -29,677,539.76

5 51,876,486.28 82,087,000 6,186,519.74 24,023,993.98 -5,653,545.78

6 51,876,486.28 82,087,000 6,186,519.74 24,023,993.98 18,370,448.20

7 51,876,486.28 82,087,000 6,186,519.74 24,023,993.98 42,394,442.18

8 51,876,486.28 82,087,000 6,186,519.74 24,023,993.98 66,418,436.16

9 51,876,486.28 82,087,000 6,186,519.74 24,023,993.98 90,442,430.14

10 51,876,486.28 82,087,000 6,186,519.74 24,023,993.98 114,466,424.10

139
Payback period
150000000

100000000

50000000

0
1 2 3 4 5 6 7 8 9 10 11
-50000000

-1E+08

-1.5E+08

Figure 27: Payback Period

From the calculation and graph obtained, it shows that the designed margarine plant with a
total capital investment of RM 33,044,773.7, annual operating cost of RM 48,417,319.7and
an annual revenue of RM 82,087,000 is estimated required a payback period of around 3
years before it comes to a constant increase in profit gained and cash flow.

10.4 INTERNAL RATE OF RETURN


IRR (Internal Rate of Return)

Formula:

CF
NPV = - investment + nk=1 (1+i)k k

Where, Initial investment = 101,749,521.70

Total CFk = RM 90,386,877.00 NPV = 0


IRR = 100%

24,746,078.98
= 100%
33,044,773.70

= 74%
Thus, the IRR value s 74%

140
CHAPTER 11

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142
CHAPTER 12

APPENDICES

143
Figure 28: Brochure of Pin rotor machine

144

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