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FINAL YEAR DESIGN PROJECT 2

SAPP

COMPANY PROFILE
NORAISHAH BINTI AMIN

RADIAH BINTI RAZALI

MOHD FAIZ BIN MOHD KHALIL

MOHD ZAKIMAN BIN OTHMAN

NUR HIDAYAH BINTI MUSA@ABDULLAH

NOR EZATY BINTI ABDUL RASHID

SAPP

PROJECT OBJECTIVES
1. To establish a foundation studies in order to develop stearic acid plant with
a capacity of 100,000 MT/year in Indonesia.
2. Establishment of proposed PFD for the plant.
3. Establishment of mechanical design and chemical design fundamental
calculation with regard to process equipment.
4. Performing Process Integration Analysis Review.
5. Performing Cost Analyses to enable investor to see the economic benefits
and attractiveness of the project.
6. Establishing a design study to develop waste water treatment to comply to
Environmental Regulation of Indonesia.
7. Performing Plant Safety and Layout studies requirements.
SAPP

PRESENTATION OUTLINES
INTRODUCTION
DESIGN OF EQUIPMENT
PROCESS CONTOL AND INSTRUMENTATION
PROCESS INTEGRATION
ENVIRONMENT, WASTE PREVENTION AND TREATMENT

ECONOMIC ANALYSIS
PLANT SAFETY AND LAYOUT
SAPP

Introduction
STEARIC ACID PRODUCTION PLANT (SAPP)

SAPP

PLANT DETAILS
I I NN T T R R OO DD UU C C T T I I OO NN

Located in Sei Mangkei, Simalungun, Sumatra, Indonesia.


The plant area is 40 hectares.
The production is 100 000 MT/year of stearic acid.
The applications of the stearic acid are in pharmaceutical product, soap and detergent,
cosmetic product, candies and fireworks.
High demand in China, Malaysia and USA (Statistic Indonesia,2014).
High quality of stearic acid as main product, palmitic acid, myristic acid and glycerol as
side product.
The plant is operated with four main unit operation, U100, U200, U300 and U400.
The company is comply with The Manpower Act of Indonesia No.13 of 2003, that every
organization need to comply with OSH.
The company must comply with the Environmental Regulation of Indonesia.
SAPP

I I NN T T R R OO DD UU C C T T I I OO NN

UNIT 200
UNIT 500
UNIT 300

UNIT 100

UNIT 400

PROCESS DETAILS

COLGATE EMERY PROCESS CONTINUOUS HIGH PRESSURE SPLITTING


SAPP

Design of Equipment
STEARIC ACID PRODUCTION PLANT (SAPP)

SAPP

P M E N T
I G N O F E Q U I
D E S

SPLITTING COLUMN (T-100)


Fatty acids

Introduction

28

The feedstock are the crude palm oil and water.


Natural oils-triglyceride of various fatty acids are
hydrolysed into free fatty acids and glycerine.
The counter-current splitting process in a tower
is suitable for the handling of larger feed rates.
It operates continuously.
High splitting temperature ensures the adequate
dissolving of the water phase in the fat .
Degree of splitting can be achieved up to 99%.
The products are fatty acids and Sweetwater.
(Lurgi,1991)

SAPP

Water

Crude palm oil


Steam

Sweetwater

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

2-PHASE SEPARATOR (V-200)


DESIGNED BY: NUR HIDAYAH BINTI MUSA@ABDULLAH (2011689822)

Introduction

Separator is used to separate water and glycerine.


These mixture consists of component that do not
react chemically and have visible boundaries of
separation between the different phases.

Type of
Separator

Vertical two-phase separator.


Vertical separator preferred for separating liquid
from mixtures with high gas liquid ratio or total gas
volume (Svreek and Monnery, 2013).

SAPP

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D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

CHEMICAL DESIGN

MECHANICAL DESIGN
Description

Description
Operating Temperature (K)

393.25

Material of Construction

Stainless
Steel

Operating Pressure (kPa)

100

Head Cover Type

Tori Spherical

Mass Flow Rate for Vapour,

( )

0.6752

Total Weight of Column (kN)

32.12

Mass Flow Rate for Liquid,

( )

149.33

Stress in Column (N/2 )

2.54 x 103

0.58

The Resultant Longitudinal


Stress (N/2 )

4.91

Differences in Principal Stress


(N/2 )

2.32

Type of Skirt

Straight-Skirt
Support

Material of Construction of
Skirt Support

Plain Carbon
Steel

Terminal Velocity, ( )

Vapour Velocity, ( )

0.44

Vessel Diameter (m)

1.5

Total Vessel Height, ()

5.2

Volume of Vessel, V (3 )

9.19

SAPP

11

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

DRAWING (V-200)

SAPP

12

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

FALLING FILM EVAPORATOR (V-201)


DESIGNED BY: NORAISHAH BINTI AMIN (2011837938)

Introduction
To concentrate a solution of glycerine in water. The water is
vaporized and concentrated solution of glycerine is produced.
Falling film evaporator provides the highest heat transfer coefficient.

SAPP

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D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

CHEMICAL DESIGN

MECHANICAL DESIGN

Value
Liquid flow rate

2514.2069 kg/h

Vapour flow rate

359.7499 kg/h

Pressure of steam
injected
Steam flow rate
Energy supplied

202.7943 kW

Area of evaporator

10.197 m2

Value

4 bar

Material of
construction

Stainless steel
(SS316)

261.17 kg/h

Minimum wall
thickness

11 mm

Type of head
closure

Ellipsoidal head

Skirt support

Straight cylindrical
support

Material of skirt
support

Carbon steel

Total weight

50.7343 kN

Skirt height

1m

Height of evaporator 2.951 m

Diameter of
evaporator
Feed inlet nozzle
diameter
No. of tubes

1.1 m

Efficiency of
evaporation
Steam economy

96.89%

0.22 m
26

1.38
SAPP

14

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

DRAWING (V-201)

SAPP

15

P M E N T
I G N O F E Q U I
D E S

DISTILLATION COLUMN (D-300)


DESIGNED BY: RADIAH BINTI RAZALI (2011479644)

Top: Water and Myristic


acid

Introduction
Distillation is the separation of
liquid mixtures depends on the
volatility, or the differences in
boiling points in each of the
components.

Feed: Water,
Linoleic acid, Oleic
acid, Palmitic acid
and Myristic acid

Basically, the top product has


lower boiling point than the
bottom product.

Bottom : Linoleic acid,


Oleic acid, Stearic acid
Palmitic acid and
Myristic acid
SAPP

16

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

CHEMICAL DESIGN

MECHANICAL DESIGN
Parameter

Value

Column types

Pressure vessel

Column material

Parameters

Value

Stainless steel 304

Column Diameter, m

2.466

Column head

Torispherical head

Column height, m

21

Column diameter , mm

2.466

Number of stages

36

Design temperature, C

270.49

Column efficiency, %

43%

Design pressure N/mm2

0.132

Rmin

0.6339

Thickness of column ,mm

12

Plate thickness, mm

Skirt support height ,m

Skirt thickness, mm

12

Tray spacing, m

0.5

Total pressure drop, mm

86.6682

Skirt type

Straight Cylindrical shell

Residence time, s

16 s

Number of feed location

12

Plate material

Stainless steel 304

Bolt circle diameter, mm

1618

Insulation Material

Mineral wool

Height of column ,m

21

SAPP

17

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

DRAWING (D-300)

SAPP

18

P M E N T

DESIGNED BY: MOHD ZAKIMAN BIN OTHMAN (2011802714)

Introduction
In this column, the feed of second
distillation column is mainly consist of
palmitic, stearic, linoleic and oleic.
The operating condition is at 1mbar.
The feed temperature is 161C.
The top product is palmitic acid with
purity of 95%.
The bottom product is mainly is oleic,
linoleic and stearic.

D E S

I G N O F E Q U I

DISTILLATION COLUMN (D-301)

SAPP

41

19

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

Condition
Feed, F41

Distillate,
F42

Bottom, F45

Column

Plate

Flowrate

Value
82.2992 kmol/hr

Temperature

519.05 K

Pressure
Flowrate

120 kPa
49.0465 kmol/hr

Temperature

455.55 K

Pressure

0.5 kPa

Flowrate

44.9451 kmol/hr

Temperature

469.15 K

Pressure

0.5 kPa

Minimum reflux ratio, Rmin

0.6431

Optimum reflux ratio, R

0.9645

Minimum number of stages, Nmin

23

Plate efficiency, E0

0.5299

Number of Actual Stages, Nactual

41

Feed point location, Ns

15

Column diameter, Dc

2.0514 m

Column area, Ac

3.305 m2

Column height, H

24 m

Turn down

85 %

Plate pressure drop, ht

77.5003 mm

Plate material

SS 304

Downcomer Area, Ad

SAPP

0.397 m2

CHEMICAL DESIGN

20

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

Conditions

Value

Operating Condition & Material Construction


Operating pressure

1.2 bar

Operating Temperature

469.15 K

Design pressure

1.320 bar

Design Temperature

488.75 K

Safety Factor

MECHANICAL DESIGN

10 %

Material construction

Stainless steel 304


Design Column Dimension

Column height, hc

24 m

Shell thickness, e

12 mm

Type of head closure

Torispherical head

Thickness of head, eD

12 mm
Column Weight

Total Weight, W

315.459 kN
Vessel Support

Type
Material construction

Straight cylindrical skirt


Stainless steel

SAPP

21

D E S

I G N O F E Q U I

P M E N T

DRAWING (D-301)

SAPP

22

D E S

I G N O F E Q U I

P M E N T

t2: 40.0C

S43
T1: 182.5C

HEAT EXCHANGER (E-302)

S44
T2: 60.0C

DESIGNED BY: MOHD FAIZ BIN MOHD KHALIL (2012831684)

t1: 30.0C

Palmitic Acid Cooler (E-302)


Type
Heat Exchanger

Floating Head (Type AES)

Flowrate
Palmitic Acid
Cooling Water

10,031.81 kg/hr
70,375.95 kg/hr

Fluid Allocation
Tube
Shell

Palmitic Acid
Cooling Water

Objective
Palmitic Acid Outlet Temperature

60C

SAPP

23

P M E N T

CHEMICAL DESIGN
Parameters
Process Condition
Heat Load, Q
Heat Transfer Coefficient Calculated, Uo,calc
Heat Transfer Area, Ao
Log Mean Temperature Different, Tlm
True Mean Temperature, Tm

SI Unit
817.05 kW
267.20 W/m2.C
45.6263 m2
72.20C
68.87C

D E S

I G N O F E Q U I

Tube Side (Palmitic Acid)


Mass Flowrate, mt
Tube Side Velocity, Ut
Tube Length, L
Tube Outside Diameter, Do
Tube Inside Diameter, Di
Tube Pitch, Pt
Number of Tubes, Nt
Tube Passes, Np
Tube Per Passes, Nt/p
Heat Transfer Coefficient, ht
Pressure Drop, Pt
Shell Side (Cooling Water)
Mass Flowrate, ms
Shell Side Velocity, us
Diameter of Shell, Ds
Bundle Diameter, Db
Heat Transfer Coefficient, hs
Pressure Drop, Ps
SAPP

10031.81 kg/hr
1.0342 m/s
5.0000 m
0.0165 m
0.0140 m
0.02063 m
176 Tubes
8 Passes
22 Tubes
453.29 W/m2.C
52.27 kPa
70375.95 kg/hr
0.4848 m/s
0.4490 m
0.3930 m
1594.80 W/m2.C
28.89 kPa

24

P M E N T
I G N O F E Q U I
D E S

Parameter
Design Pressure
+ 10% Above Normal
Working Operation

MECHANICAL
DESIGN

Value (SI Unit)


Tube
0.2255

0.1485

N/mm2

N/mm2

35 kN
Bolt Diameter: 20 mm
Bolt Holes: 25 mm
Baffles

200.8 C

Type: Saddle Support


Maximum Allowable Weight:

Shell

Design Temperature

+ 10% To Cover

Support

Type: Single Segmental


Number of Baffle: 10

44.0 C

Diameter of Baffle: 0.417 m

Uncertainties In Prediction
Stainless

Carbon

Baffle Spacing: 0.449 m

Steel

Steel

Baffle Thickness: 4.80 mm

(SS316)

(A285)

Weight Load

Corrosion Allowance

1.00 mm

1.60 mm

+ Shell

5.0610 kN

Design Stress

120

135

+ Tubes

3.3090 kN

Material of Construction

+ Taken Above The Design N/mm2 @ N/mm2 @

+ Fluid Inside Shell 7.7670 kN

Temperature

200C

50C

+ Fluid Inside Tubes 0.1310 kN

Minimum Wall Thickness

1.25 mm

7.90 mm

+ Insulator

0.6750 kN

+ Total Weight

16.9430 kN

Head & Closure

+ Front Head: Torispherical


+ End Closure: Flat Plate

Thickness = 2.04 mm
Thickness = 1.77 mm
SAPP

25

D E S

I G N O F E Q U I

DRAWING

SAPP

26

P M E N T

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

PACKED BED REACTOR (R-400)


DESIGNED BY: NOR EZATY BINTI ABDUL RASHID (2011492252)

Introduction

Reaction

The reaction that takes place in the reactor is the hydrogenation process.
Hydrogenation reaction is carried out under hydrogen gas pressure in presence of
Nickel catalyst, high temperature and nil moisture conditions.
Reaction of the process is considered as heterogeneous reactions because the
reactants are in liquid and gas phase meanwhile catalyst is in the solid form.
PBR will give a high conversion, simple design, and much cheaper.
SAPP

27

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

MECHANICAL DESIGN

CHEMICAL DESIGN
Type of Reactor

Design Orientation

Design Pressure, kPa

2200

Vertical

Design Temperature, oC

216.81

Material of Construction

Stainless Steel 316

Wall Thickness, mm

25

Volume of reactor,
m3

18.39

Diameter of
reactor, m

2.27

Height of reactor,
m

Residence time,
sec

Operating Condition

Packed Bed
Reactor

Head and Closure Design

4.54

80.4

Type

Ellipsoidal Head

Thickness, mm

25

Support Design
Type

Skirt support

Material of construction

Stainless Steel

Skirt thickness, mm

29

Skirt height, mm

3000

SAPP

28

D D E E S S I I G GN NO O F F E E Q QU U I I P PMME E N N T T

DRAWING (R-400)

SAPP

29

Process Control &


Instrumentation
STEARIC ACID PRODUCTION PLANT (SAPP)

SAPP

30

P P R R O O C C E E S S S S C C O ON N T T R R O O L L

Objectives
1. Keep Process Variables In Safe Operating Limits
2. Detect Dangerous Situation & Provide Alarm

3. Maintain Desired Production Rate


4. Maintain Desired Product Quality
5. Maintain Steady Plant Operation With Minimal Operator
Intervention

SAPP

31

Fat Splitting Column


(T-100)
Variable

Manipulated

Disturbance

Operating Temperature: 260C


Operating Pressure: 50 Bar
LV

FAT SPLITTING
COLUMN

Setpoint

TIC

FIC

TT

PG
LIC

FT

Flow

Level

Temperature

Inlet Flowrate
of Feed

Fluctuation of
Supplied Feed
Flowrate

Top & Bottom


Product
Flowrate

Fluctuation of
Inlet Flowrate

Steam Inlet
Flowrate

Fluctuation of
Inlet Feed
Temperature

Water: 12,700
kg/hr
CPO: 29,500
kg/hr
Top: 27,100
kg/hr
Bottom: 15,100
kg/hr
Operating
Temperature:
260C
SAPP

TV
FV

TIC

TT
LT

FIC
TV
LT

FT

TIC

TT

FV
TV

PG

LIC

STEAM
LV

32

Operating Temperature: 120C


Operating Pressure: 0.5 Bar

Separator (V-200)

STEAM

Variable

Manipulated

Disturbance

Setpoint
PV

Flow

Level

Pressure

Inlet Flowrate
of Feed

Fluctuation of
Supplied Feed
Flowrate

Feed Flowrate:
15,080 kg/hr

Outlet Flowrate
of Liquid
Product

Fluctuation of
Inlet Feed
Flowrate

Liquid Product
Flowrate: 2,800
kg/hr

Flowrate of
Recycled Vapor
Into Ejector

Inlet Flowrate
of Steam Into
Ejector

Operating
Pressure: 0.5
Bar

PIC

PG
FIC

SAPP

FT

PT

FV
LT

LIC

SEPARATOR
PI

LV

33

Fractionation Column
(D-301)

Top Temperature: 182.5C


Bottom Temperature: 196C
Operating Pressure: 0.005 Bar
PT

PIC

Variable

Manipulated

Disturbance

Setpoint

Flow

Inlet Flowrate
of Feed

Fluctuation of
Supplied Feed
Flowrate

Feed Flowrate:
22,550 kg/hr

Temperature

Inlet Flowrate
of Steam In
Reboiler

Fluctuation of
Inlet Feed
Temperature

Reboiler
Temperature:
196C

Level

Bottom
Product Outlet
Flowrate

Fluctuation of
Feed
Composition
and Condition

Bottom Outlet
Flowrate:
12,200 kg/hr

Pressure

Flowrate of
Recycled Vapor
Into Ejector

Inlet Flowrate of
Steam Into
Ejector

Operating
Pressure: 0.005
Bar

Ratio

Flowrate of
reflux

Flowrate of
distillate

Reflux Ratio:
2.462

PI
LV

COOLING
WATER

C.W.
RETURN

LIC

PV
STEAM

PG

(ii)

LT
FV
FIC
FT

FT

FFC

FT

FRACTIONATION
COLUMN
TT
LIC

TIC

LT

(i)
PG

STEAM
TV

CONDENSATE

PI

LV

SAPP

34

Heat Exchanger (E-302)


Variable

Manipulated

Disturbance

Setpoint

Temperature

Inlet Flowrate
of Cooling
Water

Fluctuation of
Inlet Feed
Flowrate / Inlet
Temperature of
Cooling Water

Outlet
Temperature:
60C

Palmitic Acid Cooler


Inlet Temperature: 182.5C
Inlet Pressure: 1.85 Bar
C.W.
RETURN

PI

COOLER

PI

TT
TIC

COOLING
WATER
TV

SAPP

35

Reactor (R-400)
Operating Temperature: 130C
Operating Pressure: 20 Bar

Variable

Manipulated

Disturbance

Setpoint

Flow

Inlet Flowrate
of Feed

Fluctuation of
Supplied Feed
Flowrate

Fatty Acids:
12,110 kg/hr
Hydrogen: 0.09
kg/hr

Level

Temperature

Outlet Flowrate
of Product
Inlet Flowrate
of Cooling
Water

Fluctuation of
Inlet Feed
Flowrate

Product Outlet
Flowrate:
12,200 kg/hr

Fluctuation of
Inlet Feed
Temperature /
Cooling Water
Temperature

Operating
Temperature:
130C

PG

FIC
FT

C.W.
RETURN
FV
LT
TIC

LIC

TT

COOLING
WATER

LV

TV

REACTOR
FIC

HYDROGEN

FT

FV

SAPP

36

Process Integration
STEARIC ACID PRODUCTION PLANT (SAPP)

SAPP

37

I N T E G R A T I O N
P R O C E S S

INTRODUCTION

OBJECTIVE

Pinch analysis is one of the methods that guarantee


minimum energy levels in design heat exchanger network.
A simple methodology for systematically analyses chemical
processes and the surrounding utility systems with the help
of the First Law Thermodynamics and Second Law
Thermodynamics (Ian, 2007).

To reduce energy consumption of the plant by exchanging


heat between the process streams.

SAPP

38

I O N
I N T E G R A T
P R O C E S S

Problem Table Algorithm


Stream

Condition

()

()

Shifted
()

Shifted
()

Hot

167.0

45

162.0

40

Hot

167.0

25

162.0

20

Hot

120.0

65

115.0

60

Hot

130.0

85

125.0

80

Hot

51.2

25

46.2

20

Hot

182.5

60

177.5

55

Hot

130.0

60

125.0

55

Cold

25.0

65

30.0

70

Cold

110.0

120

115.0

125

10

Cold

35.0

130

40.0

135

SAPP

39

MINIMUM HOT UTILITY


= 4265.0823 kW

I N T E G R A T

I O N

Cascade Diagram

MINIMUM COLD UTILITY


= 8154.3892 kW

P R O C E S S

PINCH TEMPERATURE
= 115

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40

I O N
P R O C E S S

I N T E G R A T

The Network Design Above The Pinch

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41

I O N
P R O C E S S

I N T E G R A T

The Network Design Below The Pinch

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42

I O N
I N T E G R A T
P R O C E S S

Comparison Before and After Process Integration


2. Cost Saving

1. Energy Saving Percentage


Utility

Before
Integration
(kW)

After
Integration
(kW)

Energy
Saving
(%)

Cost (USD/kJ)

Cost Before
(Source: Aspen Integration
Utilities
(USD/year)

Cost After
Integration
(USD/year)

Cost Saving
(USD/year)

Database)

Hot

4998.0159

4265.0823

14.66

2.2 x 106

3.2586 x 105

2.7807 x 105 4.7790 x 104

Cold

9557.3157

8154.3892

14.68

2.12 5x 107

6.0187 x 104

5.1352 x 104 8.835 x 103

Total
(kW)

14555.3316 12419.4715 14.67

2.4125 x 106

3. 8605 x 105 3.2943 x 105 5.6625 x 104

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43

I O N
I N T E G R A T
P R O C E S S

Conclusion
Based on economic analysis, the average cost for a heat exchanger is
around USD150,000 and after applying heat integration, the number
of heat exchanger is increased from 10 to 16.
Therefore, it can be seen that total cost of 6 extra heat exchanger
are around USD900,000 but the total cost energy saving having extra
6 heat exchanger are USD56,625/year.
It is not recommended to proceed the heat integration because the
total utilities saving per year is not high enough to recover the total
cost for additional heat exchanger.

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44

Environment, Waste
Prevention & Treatment
STEARIC ACID PRODUCTION PLANT (SAPP)

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45

E N V

R O N M E N T

Objectives
1. To meet the water quality standard in Indonesia of COD, BOD, pH
and oil and grease values of discharge effluent from the processing
plant.
2. To ensure that water discharge does not pollute the watershed.

3. To improve the quality of water before being recycled to the


production plant.

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46

R O N M E N T

SOURCES OF WASTE WATER IN PROCESS FLOW DIAGRAM

E N V

TOTAL WASTE
= 72,517.44 kg/day

Waste water generated


from separator V-300

Waste water generated


from separator V-200 A

SAPP

Waste water generated


from evaporator V-200 A

47

Effluent Requirement And Currently Applicable Water Quality Standards


Unit

Domestic

Industrial

No. 112 (2003)

BPLHD (2010)

Assumed 2030

by Ministry of
Environment

Total COD

239.46 mg /L

Total BOD

79.83mg /L

pH

<6

Oil and grease

>10

BOD

mg/L

100

60

20

COD

mg/L

150

100

TSS

mg/L

100

50

50

Phosphate

mg/L

10

Ammonia

mg/L

Total nitrogen

mg/L

10

Total COD

127.89 mg /L

Sulfide

mg/L

0.3

0.3

Total BOD

50.97 mg /L

Oil and grease

mg/L

10

pH

6-9

Phenol

mg/L

0.5

0.5

Chromium

mg/L

1.0

1.0

Oil and grease

10

6-9

6-9

6-9

BEFORE TREATED

E N V

R O N M E N T

Parameter

pH

AFTER TREATED

(Regional Control Agency of the Living Environment of


Indonesia, 2010)
SAPP

48

M EE NN TT
EE NN VV I I RR OO NN M

PROCESS FLOW DIAGRAM FOR WASTEWATER


TREATMENT

Screening
Tank
Oil-water
Separator

SAPP

Sequenching
Batch Reactor

Disinfection
Tank

49

Economic Analysis
STEARIC ACID PRODUCTION PLANT (SAPP)

SAPP

50

M I I CC AA NN AA LL YY SS I I SS
EE CC OO NN OO M

TOTAL INVESTMENT
1. Cost of Equipments

2. Commissioning Cost
Fixed Capital Investment (FCI)
RM 459,353,770
RM 459 million
Working Capital
RM 22,967,689
RM 23 million

(Chemical Engineering Journal, 2014)


(Kolmetz, 2014, Engineering Design)

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(Kolmetz, 2014, Engineering Design)

C A N A L Y S

3. Total Manufacturing Cost

TOTAL INVESTMENT
= equipment + commissioning +

E C O N O M I

manufacturing

= RM 1,536,331,665
= RM 1.54 billion

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S
I
C A N A L Y S
E C O N O M I

TOTAL PROFIT
1. Revenue
Products sold/year
= RM 2,609,617,500
= RM 2.6 billion/year

2. Net Annual Profit After Tax


Revenue Total manufacturing cost 35%Tax
= RM 2,609,617,500 RM 939,171,763 RM 584,656,008
= RM 1,085,789,729
= RM 1 .09 billion/year
TOTAL PROFIT
= RM 1.09 billion/year
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Discounted Cash Flow Diagram

INTEREST RATE is the


amount charged,
expressed as % of principle
by a lender to a debtor for
the use of assets (cash).

6,000,000,000.0

5,000,000,000.0

Cumulative Discounted Cash Flow

M I I CC AA NN AA LL YY SS I I SS
EE CC OO NN OO M

PAYBACK PERIOD

4,000,000,000.0

3,000,000,000.0

PAYBACK PERIOD
for 10% Interest
Rate
= 2.8 Years

2,000,000,000.0

1,000,000,000.0

0.0
0

-1,000,000,000.0

10

11

12

Year
10%

40%

44%

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M I I CC AA NN AA LL YY SS I I SS
EE CC OO NN OO M

NET PRESENT VALUE (NPV)


The purpose of net present value is to help decide whether or not
new projects are financially viable and how much is an investment
worth today.

It is the final cumulative discounted cash flow value at the end of


project life.
Accept if NPV > The Total Investment.
Net Present Value (NPV) at 10% Interest Rate = RM 5.5 billion

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M I I CC AA NN AA LL YY SS I I SS
EE CC OO NN OO M

Discounted Cash Flow Rate of Return (DCFROR)


or Internal Rate of Return (IRR)
IRR is a projects expected rate of
return on its investment.
It is the interest rate where the
present value of the inflows equals
the present value of the outflows.
In other words, it is the rate where a
projects NPV = 0.
The higher a project IRR, the more
desirable it is to undertake the
project.
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Plant Safety & Layout


STEARIC ACID PRODUCTION PLANT (SAPP)

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P L A N PT LS AA NF TE ST AY F& EL TA YY O U T

HAZOP

PLANT
LAYOUT

PLANT
SAFETY
AND
LAYOUT

SAPP

SOP

ERP

58

P L A N PT LS AA NF TE ST AY F& EL TA YY O U T

SOP
OBJECTIVES

Provide to the operator to be able to start-up and shut-down the critical equipment safely,
monitor the plant under normal operation and carry out exercises as and when problem
arises.

SOP ON
MAIN
EQUIPMENT

1.
2.
3.
4.

CHECKLIST

STAR-UP &
SHUT-DOWN
PROCEDURE

Distillation column (Utah Edu. Dept., 2008)


Heat exchanger (Sundex, 2013)
Evaporator (Fisher, 2014)
Reactor (Paras, 2013)

1. Perform HIRARC
2. Provide PPE
3. Provide Work Permit
4. LOTO
1.
2.
3.
4.

(Sinnot, 2008)

Unit 100
Unit 200
Unit 300
Unit 400
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P L A N PT LS AA NF TE ST AY F& EL TA YY O U T

HAZOP
OBJECTIVES

1. To identify possible activity that probably have the potential hazard


2. To identify the possible causes of the hazard and determine the features of
design that will be affected by the incident occur
3. To appoint the action required to mitigate with the hazard

GUIDEWORD

Guideword is used to indicate the deviations and the degree of deviate at the study
node (Sinnot,2008).

HAZOP ON MAIN
EQUIPMENT

1.
2.
3.
4.

Unit 100
Unit 200
Unit 300
Unit 400

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P L A N PT LS AA NF TE ST AY F& EL TA YY O U T

ERP
To identify an appropriate command structure and the important actions towards emergencies
respectively by their threats identified at the plant.

1.
2.
3.
4.

Health
Safety
Security
Environment

OBJECTIVES

HIRARC

EMERGENCY
PROCEDURE

1. Reporting emergency
2. Responding to emergency

(Shell, 2012)

1. Short wave radio


2. Audio public address system

EMERGENCY
DEVICES

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P L A N PT LS AA NF TE ST AY F& EL TA YY O U T

PLANT LAYOUT
1.
2.
3.
4.
5.
6.

Maximum flexibility
Maximum accessibility
Minimum distance
Convenience
Maximum security
Efficient process flow

OBJECTIVES
(Sinnot, 2008)

Product plant layout advantages:


1. The flow of product will be smooth and logical in flow lines
2. Reduced material handling cost due to mechanized handling systems and straight
flow
3. Manufacturing cycle is short due to uninterrupted flow of materials
4. Unskilled workers can learn and manage the production
(Bhavan, 2008)
1. Processing area
Machine operator area (production)
2. Non-processing area
Fire protection equipment, Auxiliary/ support workstations (production
/warehouse), Supplementary workstations (laboratories), Parking areas,
Administration building
3. Minimum distance requirement
(Sinnot, 2008)
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ACCEPTABLE
PLANT LAYOUT

PLANT AREA
ZONING

62

P L A N PT LS AA NF TE ST AY F& EL TA YY O U T

1.
2.
3.
4.
5.
6.

Control room
Tank farm
Designated smoking area
Waste water treatment plant
Exit/entrance point
Assembly point

PLANT
FACILITY
(Sinnot, 2008)

Plant Layout Video Link

PLANT LAYOUT

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Q & A SESSION

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