ASIAN INSTITUTE OF TECHNOLOGY SCHOOL OF ENVIRONMENT, RESOURCES AND DEVELOPMENT ENVIRONMENTAL ENGINEERING AND MANAGEMENT PROGRAM
Term Paper II
Shampoo Production
Course: ED 78.20 Industrial Waste Abatement and Management
Instructor:
Prof. C. Visvanathan
Prepared by:
Mr. Oukham
Phounpakone
ID.104319
Ms. Lalitcha
Imchuensri
ID.104480
Ms. Jarussaeng
Molen
ID.104509
Mr. Bidur
Dahal
ID.104539
Mr. Artid
Prakitcharoensuk ID.104689
Mr. Pradeep
Munasinghe
ID.104713
Ms. Cao Thi Van Hau
ID.104771
Mr. Seng
ID.104748
Date of submission: 26 April, 2007
Bunrith
Table of Contents 1
2
3.
Introduction
1
1.1
Background
1
1.2
Cosmetic Market in Thailand
1
1.3
Types of Cosmetics
1
1.3.1
Shampoo
1
1.3.2
The Worldwide Market Potential of Shampoo
2
1.3.3
Asia Market
3
1.3.4
Thailand
3
Shampoo production process
3
2.1
Raw materials
3
2.2
Processing
4
Waste Treatment Practices 3.1
Wastewater
6 6
3.1.1
Pretreatment
7
3.1.2
Primary Treatment
7
3.1.3
Secondary Treatment
7
3.1.4
Tertiary Treatment
7
3.2
Air pollution
7
3.3
Solid Waste
8
3.4
Noise Pollution
8
4
Environmental issues related to shampoo production
8
5
Cleaner Production
10
6
Pollution Norms
10
7.
Case study – Unilever Thai Holding Ltd.
11
7.1
Introduction
11
7.2
Shampoo process
11
7.3
Wastewater management
12
7.4
Solid waste management
14
7.4.1
Type of solid waste
14
7.4.2
Waste management
14
7.4.3
Waste collection
14
Appendix A-F
Nurture Shampoo Manufacturing Co., Ltd
1
Introduction
1.1
Background
Pa g e | 1
The word “cosmetics” comes from the Greek word kosmetikos meaning “skilled in adornment/decoration”. The way people wear makeup and the reasons why they wear it have changed dramatically over time and through different cultures. It is believed that cosmetics have been used as early as Egypt circa 4000 BC to fulfill beautifying needs. According to some sources numerous forms of cosmetics were extracted from the fertile land of the Nile River. The shepherds and hunters of the Mesolithic Period would often smear their bodies with locally made cosmetic products. 1.2
Cosmetic Market in Thailand
The cosmetics industry is one of the fastest growing sectors in Thailand. The year 1997 saw the fastest growth period in the cosmetic industry, with a growth rate of 20 percent. Although the economic crisis has had a negative impact on consumption levels, results during 1999-2000 show that the cosmetics industry’s growth rate was at 15 percent. Thailand’s exports of cosmetic products increased by 72 percent in 2003 compared to a year before. The cosmetics market was expected to grow at an average of 18 percent in 2004, due mainly to Thailand's positive economic situation and expected positive GDP growth. In 2005 cosmetics and toiletries in Thailand continued to record strong growth increasing by 7% of the previous year. The main factor behind growth of the market was increasing retail prices caused by an increase in energy prices and a change in consumer behavior in favor of expensive products. The most dynamic performances in 2005 were seen in skin care, fragrances and men's grooming products. On the other hand, growth in areas such as bath and shower products, hair care and oral hygiene was significantly lower as these products had already achieved widespread penetration. Imported cosmetic products ed for approximately 24 percent of the total market. Major countries of origin included Belgium, , , Japan, the United Kingdom, Italy, China and the United States. As of 2003, there were 800 manufacturers of cosmetic products listed with the Industrial Works Department of the Thai Ministry of Industry. Approximately 70 percent of them are clustered in the Bangkok metropolitan area. Thailand is a major producer and exporter of shampoo products, which ed for 40 percent of the total export value of cosmetic products in 2003. 1.3
Types of Cosmetics
Today the cosmetic products range from simple skin creams, soaps and shampoos to special lotions, base creams, moisturizers, nourishers, cleansers, protectors, rejuvenators and conditioners for body, face, hands, eyes, lips, mouth, hair, nails and so on. 1.3.1
Shampoo
Shampoo is a common hair care product used for the removal of oils, dirt, skin particles, environmental pollutants and other contaminant particles that gradually build up in hair (without stripping out).Shampoo, when lathered with water, is a surfactant (surface active Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
P a g e | 2
agents, i.e., wetting agent). Shampooing is frequently followed by conditioners which increase the ease of combing and styling. 1.3.2
The Worldwide Market Potential of Shampoo
The latent demand (or potential industry It shows the top 3 regions cover come 87 percent of the global latent demand for hair earnings) for hair care shampoo was estimated to be $7.4 billion in 2005. The care shampoo distribution of the world potential industry Table 1: Worldwide Market Potential for earnings, however, is not evenly distributed Hair Care Shampoo (US $ mln): 2005 across regions. 2005 data shows that Asia is Latent the largest market with $2.4 billion or 33 % of Demand Region percent, followed by Europe & the Middle Globe US $ mln East with $2.2 billion or 29 percent, and 2,360 33 then North America & the Caribbean Asia with$1.9 billion or 25 percent of the world Europe & the Middle 2,163 29 market. East 601 8%
North America & the Caribbean
2,360 33%
1,862 25% 289 4%
93 1% 2,163 29%
1,862
25
Latin America
601
08
Africa
289
04
Oceana
93
01
7,368
100.0
Total
Source: Philip M. Parker, INSEAD, 2005 www.icongrouponline.com
Asia
Africa
Europe & Middle East
Oceana
North America & Caribbean
Latin America
Figure 1: Worldwide market potential (US $ mln: 2005)
World Market Trend (2000-2010)
W o rl d m a rk e t [U S $ b i l l io n ]
The world market for hair care shampoo some other reasons for its continued had steadily declined from the period growth. between 2002 and 2004 as these products had already achieved widespread 8.2 penetration. However, it showed positive 8.0 growth after 2005. The main factor behind growth of the market was increasing retail 7.8 prices caused by an increase in energy 7.6 prices and a change in consumer behavior in favor of expensive products. Increase in 7.4 demand by growing population, 7.2 widespread commercial ment of 2000 2002 2004 2006 2008 2010 the hair care products, change in life style year due to improved quality of life in major regions like China and India, etc were Figure 2: World market trend
Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
2012
Nurture Shampoo Manufacturing Co., Ltd 1.3.3
Pa g e | 3
Asia Market
In case of Asia, three most populated countries China, India and Japan have a bigger share of the product. 2005 data shows that China is the largest market with $796.18 million or almost 34 percent, followed by Japan with $539.3 million or 22.85 percent, and then India with $385.47 million or 16.33 percent of the Asian market. It shows that the top 3 regions cover 73 percent of the Asian potential demand for hair care shampoo. The other top three nations with one digit percentage share of Asian market of the product include South Korea, Indonesia and Thailand with approximately six percent, five percent and three percent respectively (Detail data in Appendix A). It has also been observed that the market of hair care shampoo shows a similar fashion as that of world market with a slight decline till 2004 from 2000 and then increase steadily after that.
N No ep rt h al Ko re a Ca m bo di a
Ja pa n I n So di a ut h Ko re In do a ne sia Th ai lan d Ta i Ph wa ilip n pi ne s M al ay Ba s ng ia la de Ho sh ng Ko ng Vi et na m Sin ga po re Bu rm a Sr iL an ka
40 35 30 25 20 15 10 5 0 Ch in a
Percent (US $ mln)
Market Potential for Hair Care Shampoo in Asia:2005
Countries
Figure 3: Comparison of shampoo market in Asia 1.3.4
Thailand
Thailand is also a major player of hair care shampoo market contributing around one percent of the total global market share. Asia contributes about 33 percent of total world shampoo market where Thailand contributes three percent of the market share. The shampoo market is almost steady for the last few years in Thailand. It has been predicted that the market would continue to grow in the similar fashion for next five years, i.e. till 2010. Bangkok city, world rank 14 in hair care market, alone contributes about 94 percent of the Thai shampoo market share whereas the city contributes 2.83 percent in the Asia region and 0.91 percent of the world market share (Appendix B).
2
Shampoo production process
2.1
Raw materials
Hair shampoos are highly formulated products based on a limited range of cosmetically acceptable surface active agents, plus conditioning agents, pearling agents, antimicrobials agents, colours and fragrance. Shampoo ingredients must be biodegradable as other body care products to minimize health effects. Each ingredient has specific functions and roles in shampoos. Following points given below are some of
Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
P a g e | 4
the main components of shampoos along with their characteristics. However, the description of shampoo ingredients is given in details in Appendix C. •
Surfactants, including five categories (primary anionic - basic, secondary anionic - mild, amphoteric, cationic and nonionic), serve as foamers and detergents which are easy to soluble in water.
•
Thickeners and foam stabilizers remain viscous to avoid precipitation and stability against hydrolysis at higher temperature or extreme pH. They can be polymers, natural gums or cellulose derivatives.
•
Conditioning agents make hair easy to comb after drying. Since conditioners are effective than shampoo, very low concentrations (0.5% by weight) are sufficient. Conditioners are normally fatty components such as fatty alcohol, monoglyceride, vegetable oils, lanolin, herbal extracts and silicon.
Shampoos can be made in various physical forms such as liquids, creams, paste, aerosol and dry. Liquid shampoos are common, either clear or opaque (pearlised), containing 20–40% solids, adjusted to approximately pH 5.5 and viscosities in the ratio of 500– 1500 centipoise. Composition of shampoos can be modified for special application. Medicated shampoos generally use similar ingredients and added specific medicant. For instance, dandruff shampoos contain fungicides such as zinc pyrithione and selenium sulfide which reduce loose dander by killing Malassezia furfur. Shampoos for infants are formulated with particular emphasis on minimal eye irritancy and skin mildness. A limited range of proprietary ingredients are used to meet these needs. Totally different from hair care products for human, shampoo for animals may contain insecticides or other medications for treatment of skin conditions or parasite infestations such as fleas or mange. 2.2
Processing
Shampoos are manufactured by simple blending in a stirred vessel. Sometimes a moderate amount of heat is used to reduce the viscosity and so facilitate ease of mixing therefore vessels are equipped with low pressure steam heating coils. Vessels are typically constructed from stainless steel, although glass-lined vessels are still used in some processes. Ingredients are weighed or metered incrementally into the mixing vessel, with thorough mixing between each addition. Dispersed and emulsified mixes are achieved by means of the central rapid speed movement. Some pearlising agents are waxy solids at ambient temperature and require melting in a drum oven or similar before use. Demineralized water is most commonly used in order to minimize contamination of the product. In cosmetic industry, reverse osmosis membranes play a role in production of demineralized water. These membranes act as a molecular filter to remove 95 to 99% of dissolved salts and inorganic molecules, as well as organic molecules with a molecular weight greater than 100. The reverse osmosis membrane also removes more than 98% of residual biological and colloidal matter from the feed water.
Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
P a g e | 5
No further processing is required after blending, and the product may be packed off directly from the mixing vessel by filling system which composes of auto-bottle settling machine, bottle-washing machine, filling machine, lid-revolving, label-attaching and aluminum foil clapper. In some segments of the industry, one manufacturer may produce a shampoo base which is sold to, and further processed by, the formulator. Typically, this second level processing will involve only the addition of water, color and fragrance. Proprietary and/or therapeutic ingredients may also be added at this stage (Appendix D). Washing water 60 m3/day
Chemicals 21.6 tons/day
Process
Deionized water 23.3 m3/day
Product 43.5 m3/day
Losses 0.73 tons/day
Note: Shampoo density : 1020 kg/m3
Wastewater 59.8 m3/day
Figure 4- Mass balance diagram for shampoo production Inputs: - Chemicals - Deionized water - Washing water - Inputs Outputs: - Product - Waste water - Outputs Material balance: Inputs 104.9 tons/day Losses Percentage losses
Instructor: Prof. C. Visvanathan
= 21.6 tons/day = 23.3 m3/day x 1 tons/m3 = 23.3 tons/day = 60 m3/day x 1 tons/m3 = 60 tons/day = 21.6 + 23.3 + 60 = 104.9 tons/day = 43.5 m3/day x 1.02 tons/m3 = 44.37 tons/day = 59.8 m3/day x 1 tons/m3 = 59.8 tons/day = 44.37 + 59.8 = 104.17 tons/day = Outputs + Losses = 104.17 tons/day + Losses = 0.73 tons/day = 0.73/104.9 = 0.7%
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
P a g e | 6
3. Waste Treatment Practices Nurture Shampoo Manufacturing produces only hair care shampoo with the capacity of 44m3/day. As this factory is small, it produces fewer amounts of pollution, wastewater, solid waste, air pollution, and noise pollution. In order to meet the Thai standard of wastewater effluent discharge, wastewater treatment plant was implemented. Wastewater is collected and mixed together from washing operation, cleaning, laboratory experiment, and domestic wastewater (Appendix D). Air pollution is one of the problems found in this factory but it is not a big problem because fewer amounts of gas emission, NOx, SOx, dust and soot, and aerosol, is emitted to the atmosphere. All gases coming from the factory are treated by using wet scrubbers and bag house filters. Solid waste is another pollution factor in the factory. Most of the solid wastes are plastics, cardboards, bottles, and food waste and yard waste. The recycled materials such as plastic, bottle and cardboard are sold to recycling shop, and food waste and yard waste are collected by municipal solid waste collectors. Beside these three main pollutions, noise pollution is also found within the factory. Noise almost comes from blending machine and filling machine. This problem is solved by putting these processes in a closed room and all workers have to use ear plugs or ear mufflers. Table 2- Wastewater Characteristic Parameters BOD COD TDS TSS Alkalinity Oil and Grease pH Total N Total P Color Temperature 3.1
Unit mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L of pt o C
Concentration 350 700 3000 650 200 120 10 50 9 700 29
Wastewater
Wastewater refers to the water discharged after use which contains the characteristics as shown in table 2. Wastewater treatment plant consists of primary treatment, secondary treatment, and tertiary treatment (Appendix E). Moreover, sludge dewatering and disposal is also implemented. Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd 3.1.1
P a g e | 7
Pretreatment
Coarse solid such as plastic, cardboard, paper must be removed from the waste effluents to reduce abrasion and prevent damage to pumps, piping and sludge dewatering equipment. For the wastewater of this shampoo factory, mechanical bar screens and Equalization & Neutralization are used for the operation. Equalization & Neutralization play an important role of storing wastewater coming from the processes in batch operation and adjusting the pH between 6.5 and 8.0 to prevent disturbance in secondary biological treatment systems. 3.1.2
Primary Treatment
The main objective of primary treatment in the factory is to remove the settleable portion of SS and oil & grease. Floatation process is used to separate solid or liquid particle and to concentrate biosolids. Among the three unit operations - dissolved air floatation, dispersed air floatation, cavitations floatation - dissolved air floatation is used which consists of dissolved air under a pressure of several atmospheres introduced at the bottom of the tank, scrapper at the bottom and skimmer at the top of the tank to collect all settleable solid and to remove all the floating matter (oil and grease). 3.1.3
Secondary Treatment
Secondary treatment is designed to remove BOD associated with dissolved organic material in the effluent and normally uses biological processes. The biological treatment process can convert much of the dissolved organic material in effluent to water, CO2 or organic suspended solids and expected BOD removal is 70-95%. Suspended growth biological treatment process is used here to treat the wastewater. The process consists of the following three components: (1) a reactor in which the microorganisms responsible for treatment are kept in suspension and aerated; (2) liquidsolid separation, usually in a sedimentation tank; and (3) a recycle system for returning solids removed from the liquid-solids separation unit back to the reactor. The excess sludge from the secondary sedimentation tank is collected to sludge thickener in order to increase the solid content for dewatering process. 3.1.4
Tertiary Treatment
The components remaining after primary and secondary treatment are residual SS, residual BOD, Color and some other trace elements. Tertiary treatment designed to remove these components is activated carbon adsorption. The main purpose of using the activated carbon adsorption is to remove the color of the effluent treated water for reusing to the cooling tower, fire fighting, floor washing, gardening, road cleaning, and GAC back washing. 3.2
Air pollution
Nurture Shampoo factory is a small manufacturer which is equipped with all modern facilities and new technologies. Therefore, air pollution is not a big problem in this factory. However, air pollution is found from the boiler, by using heavy oil, and weighting room. The pollution control devices are shown in Table 3.
Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
P a g e | 8
Table 3- EOP Technologies for the Air Pollution Abatement Processes
Air Pollution Control Device
Raw material preparation (Dust) Dust collection system (bag house filter) Utilities (Boiler) 3.3
Wet Scrubbers
Solid Waste
In the process of making shampoo, it will not have large quantity of solid waste. Mainly we have paper, cardboard and plastic from production process and the office and food waste from the canteen and yard waste from cleaning the garden. Paper, plastic and cardboard will separate from the waste and sell for recycling. The other solid wastes will be collected by the municipal solid waste collection system (Table 4). Table 4- Solid waste generation Source
Waste
Unit
Quantity
Management
Office
Paper and Plastic
Kg/day
10
Recycle shop
Operation
Cardboard and plastic
Kg/day
40
Recycle shop
Canteen
Food waste
Kg/day
65
Municipal collection system
Garden cleaning
Yard waste
Kg/day
5
Municipal collection system
3.4
Noise Pollution
Mainly in Shampoo production process, noise is produced by dissolve tanks, boilers, mixers and filling machines. This is not a big environmental issue. But if we consider the cosmetic industry where we have size reduction processes will produce much more noise than the shampoo production alone. In our industry we have separated sound proof rooms to keep these units and for the workers we will provide personal protective equipments like ear plugs and mufflers.
4
Environmental issues related to shampoo production
No by-products are produced during the shampoo manufacturing process. Washing out the blending vessel and other washing purposes will produce an effluent which will contain some shampoo. Since all reputable manufacturers of these products use fully biodegradable surface active agents, we use biological treatment process after removing oil and grease. Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
P a g e | 9
‘Treated water’ using newest inventions like titanium micro-dispersion water technology can be used for various cosmetic materials instead of normal demineralized water. This method produces high-function cosmetic materials offering the efficacies of active ingredients contained in the cosmetic material as well as the effects of titanium micro-dispersion water. But in our process we are using deionized water as the solvent media.Following are some of the Environmental Issues we found out in Shampoo manufacturing industry. Air pollution: Mainly in shampoo production process we have air pollution due to NOx, SOx, and particulate matter and vapor. NOx is produced from the furnace and SOx and vapor from the fuel which is used to heat the boiler. Dust and soot is produced in the mixing units and the packaging area. NOx and other emissions from the furnace will be absorbed by the packed tower which is connected to the furnace whereas we have implemented SOx reduction technologies like Dry Flue Gas Desulfurization Processes (FDG). In the manufacturing process of shampoo we experience odor problems due to the chemicals which we use in the production process. We can not eliminate the odor problem and we use a dilution method as these odors are non toxic. In our industry we provided more ventilation for the areas where we have these production units and for workers we provide personal protective equipments like dust masks and respirators. Noise pollution: As mentioned earlier, noise is produced from dissolve tanks, boilers, mixers and filling machines. Noise pollution may be significant if we consider cosmetic industry as a whole. Water pollution: The major pollution source is the waste water coming from the production process. It contains lot of colloidal particles and the spilling of the raw materials. Floor cleaning waste water also comes to the wastewater treatment plant. We try to minimize the wastewater amount generate in the production process by implementing CIP (Clean in Place) as much as possible. As a newly constructed industry our machines like mixers and filling units we have this technology. We will not be going to reuse the raw materials which are coming as waste. In wastewater TDS content is considerably high, because we have lot of colloidal particles in the wastewater. In general Cosmetic industries contain high TDS values. And also the incoming wastewater contains lot of forms. When we adjust the pH of the incoming wastewater in the equalization tank, we can make this issue to minimum. Adjusting the pH is a must in our treatment process because we are going to use biological treatment process to remove BOD. Waste water coming out of the production process will have a higher pH value because we use some basic solutions as our raw materials. (Eg. Caustic) Solid wastes: We do not get large quantity of solid waste from the process. Mainly we have paper, cardboard and plastic from production process and the office whereas food waste from the canteen and yard waste from cleaning the garden. Paper, plastic and cardboard will be separated and sold for recycling. The other solid wastes will be collected by the municipal solid waste collection system. Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
P a g e | 10
5 Cleaner Production Cleaner production is the main tool to reduce the pollution from industries which applies integrated preventive strategies to processes, products and services to increase economic efficiency and to reduce risks to humans and environment. Cleaner production means economic savings from reduced consumption of raw materials and energy, and lower treatment costs, as well as other benefits such as a better company image and better working conditions. Implement cleaner production may not solve all environmental problems at a facility, but it will decrease the need for installing and operating end of pipe treatment equipment and reduce the quantity of hazardous waste that must be treated and disposed of. Following are some of the aspects addressed as cleaner production approaches. Process modification: When environmental issues becomes more important, shampoo manufacturers care about non-polluting materials such as organic ingredients (saponin extracted from pods of Acacia aulucumiformis), biodegradable bottles. Shampoo bottles made from beet extracts that biodegrade in compost pile, or fabrics that break down in soil safely, without any toxic by-products. As a new industry we have the best available technology in the present days. Most of the machines are run by computer softwares which will give accurate measurements on batching and mixing of ingredients. This will lead to optimum raw material usage. Recycling: In the boiler water will be recycled and use it back. We need to supply what ever the amount we loose due to evaporation losses. For the Cooling tower we plan to use the treated effluent. And that will be used in floor cleaning, fire fighting, road cleaning and gardening purposes. Dust Control: Dust and soot can be controlled using bag filters or wet scrubbers. Unloading the raw material will be one of the dust generating points. By directly unloading the raw material in to the storage silos will reduce the dust generation. Noise reduction: Even though this is not a big issue in Shampoo production, we have a plan to do regular checking of noise generated by the machine units. We will maintain the machines according to the guidelines provided in Occupational Safety and Health istration (OSHA) specification. Raw Material quality will also be monitored and changed accordingly to achieve optimum conditions. Solid waste management: Segregation of solid waste will be promoted as an essential part of the process. Especially plastic, paper and cardboard will be separated from other solid wastes and sell to the recycling shop. Plastic bottles from the quality assurance unit will be washed and reused.
6 Pollution Norms Pollution norm is used to compare the pollution loading from the actual practice to the standard or guideline. For shampoo production, there is no specific pollution norm in Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
P a g e | 11
the WHO guideline. Therefore, we compare the pollution load of our production with some of the soap production processes given in WHO guideline as shown in table 5. Table 5- Typical Pollution Norms for Soap Production Unit [U]
Waste Volume [m3/U]
BOD5 [kg/U]
TSS [kg/U]
Oil [kg/U]
Soap from kettle boiling
tn product
4.5
6
6
0.9
Liquid Soap
tn anhydr
-
0.1
0.1
0.1
Liquid Detergent
tn anhydr
-
2
-
-
Table 6- Wastewater Pollution Load Parameter
Flow [m3/day]
Unit [U]
Flow [m3/tn]
BOD [Kg/tn]
COD [Kg/tn]
TSS [Kg/tn]
0il [Kg/tn]
Pollution load
110
tn product
2.5
0.875
1.75
1.625
0.3
7.
Case study – Unilever Thai Holding Ltd.
7.1
Introduction
Unilever is a part of Thai people’s lifestyle. It has penetrated deeper not only into their culture but also in the commercial market within a span of 70 years in the country. So far, as they claim, Unilever’s products have been the most sold items in Thailand market. Currently, Unilever has about 3000 professionals in their factories located at various parts of Thailand. Their products range from food products, cleaning products, garment products and others that fulfill every demand of Thai lifestyle. The company’s vision is “to respond every demand with new products”. Shampoo products from Unilever were introduced in Thailand in 1976 with brand names of “Clinic & Clear” and “Sun silk”. They have been the trade leaders in Thailand for the past 30 years or more. Product categories include anti-flat, anti-proof, straightenup, etc. 7.2
Shampoo process
Shampoos are produced by mixing all ingredients (Figure 5). Raw materials must be prepared and weighed by weighing machine. Then they are mixed in bulk material mixer at approximately 80oC. Some components vaporize easily such as perfume so that they need to be mixed separately at lower temperature of 25oC in side mixer. Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
P a g e | 12
After premixing, ingredients are mixed properly in main mixer at about 32oC. After that, the liquid is transferred to storage tanks before being filled into bottles or refill bags. When production batch completes, machines are cleaned by hot water at 80oC. Perfume (25oC)
Raw Materials
8
1 2
3
7
5
4
6
1. Pre-weight station 2. Bulk mixer 3. Side mixer
4. Main mixer 5. Bulk material storage 6. Filling machine
7. Storage tank 8. Clean in place unit
Figure 5- Shampoo process flow diagram 7.3
Wastewater management
Waste water of shampoo production in Unilever Thai Holding Ltd. varies in pH values (Table 7). Flow rate is of 4,500m3/day. Treatment includes physical-chemical processes as well as biological process as shown in figure 6. Table 7- Waste water characteristic of Unilever Thai Holding Ltd. Parameter
Influent
Effluent
IEAT Standard
5.8 – 11.5
7–8
6–9
2. BOD (ppm)
3,243 – 5,035
15 – 50
500
3. COD (ppm)
4,849
30 – 150
750
61 – 202
< 10
10
492 – 1,635
< 50
200
1. pH
4. Oil & Grease (ppm) 5. Suspended Solid (ppm) Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
Incoming Liquid waste
P a g e | 13
Fat Trap
Equalization Tank
pH Tank
CO2
Coagulation Tank Chemical Treatment
Polymer
CO2
Alum and CaCO3
Flocculation Tank
Sedimentation Tank Sludge pond pH Tank
150 ton Tank
Holding Pond
Filter Press
Sludge cake Disposing by WMS
Aeration Pond Biological Treatment
Sludge pond
Treated Water Pond To CETP
Polymer Mixer
Sedimentation Tank
Figure 6- Wastewater flow diagram
Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd 7.4
Solid waste management
7.4.1
Type of solid waste
a. b. c. d. 7.4.2
P a g e | 14
Paper i.e. box, casket, office paper, etc. Plastic i.e. plastic bags, sheath, bags to put raw materials, etc. Hazardous waste i.e. batteries, fluorescent bulbs, spray bottles, etc. Common waste i.e. yard, food waste, etc. Waste management
a. Waste for sell consists of paper, plastics, metal container, metallic scrap and oil waste. Annual revenue from waste selling is of 1.7 million Bath. b. Waste for disposal by incinerator consists of scrap common waste and hazardous waste. Disposed waste annual expenditure is 1.8 million Bath. 7.4.3
Waste collection
Waste collected to landfill site includes scrap hazardous waste which consists of chemical contaminated container i.e. canned, fluorescent bulbs, used oil etc. Layout of waste collection zone is shown in appendix F.
Figure 7. Waste collection a) Contaminated container; b) Waste collection and recycle process a. Compression Waste from residue raw materials; wrapping up plastics, detergent, scrap of paper etc. are compressed as shown in figure 8.
Figure 8. Compression solid waste b. Incineration After waste separation, they will divide waste 2 groups consisting of recycle waste and un-reusable waste. The latter will send to incinerator inside factory or landfill outside factory. Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
P a g e | 15
c. Transportation Rubbish is both compressed and loose waste by using container as shown in figure 9.
Figure 9. Waste collecting truck and transportation d. Contaminated container • Plastics tank size 200 L, metal tank size 200 L, fiberite and carton, used oil etc. • Revenue from contaminated container is around 1,700,000 Bath/annual. e. Waste disposal Waste disposal process selected in Unilever company have two ways are compound of incineration which is situated in factory and other wastes not be able to burn going to landfill to be buried.
Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Nurture Shampoo Manufacturing Co., Ltd
Reference APO’s Demonstration Projects, 2000-2004, Asian Productivity Organization #HC 415 I 52 G74 2000-04 Assoc. Prof. Dr.Pleumchitt Rojanapanthu, Hair Care Products. Pharmacy Department, Faculty of Pharmacy Mahidol University, Bangkok, Thailand Chemical & Laboratory Equipment. 2005. Material Safety Data Sheet: Citric acid. (online). Available: www.sciencelab.com [ 2007, January 28] Eckenfelder Jr., W. Wesley, 1989, Industrial Water Pollution Control #TD745 E23 1989 Industrial Estate Authority of Thailand, Annual Report 2005 # HD 890.55 A1 I 53 2005; Mary Ann H. Franson, Srandard methods for the examination of water and wastewater, Fifteenth Edition, Washington DC 20005, 1981. Metcalf& Eddy, Wastewater Engineering, Treatment and Reuse, Fourth Edition, 2003. Michican State. 2005. Reverse Osmosis (RO). (online). Available: http://web1.msue.msu.edu/msue/iac/disasterresp/HomeImprovement/wq24.pdf OPTEK. 2005. Clean-In-Place (CIP) Applications (online). Available:http://www.optek.com/Application_Note/General/English/3/CleanInPlace_(CIP)_Applications.asp. Stepan. 2007. Product shampoo. (online). Available: http://www.stepan.com/en/products/formulations.asp?id=384 [2007, January 28] Laws and Standards on Pollution control in Thailand, 4th Edition 1997. Lecture of Air pollution (ED78.06) Dr.Kim AIT http://en.wikipedia.org/wiki/Flue_gas_desulfurization#References http://energyconcepts.tripod.com/energyconcepts/airenergy_tips.htm http://hypertextbook.com/facts/2006/TatyanaNektalova.shtml www.ab6.net/Library/AB6%20VMI%20Trimix.pdf www.bwe.dk/fgd-ct121.html www.cashflo.co.uk/index.html www.epa.gov/ttn/catc/dir1/ffdg.pdf www.osha.gov www.pollutiononline.com/ www.stronghealth.com/services/Audiology/hearing/workplaceguidelines.cfm www.icongrouponline.com
Instructor: Prof. C. Visvanathan
ED78.20: Industrial Waste Abatement & Management
Enviromental Engineering and Management, AIT
Appendix A Market Potential for Hair Care Shampoo in Asia (US $ mln): 2005 Country
Latent Demand US $ mln
% of Asia
China Japan India South Korea Indonesia Thailand Taiwan Philippines Malaysia Bangladesh Hong Kong Vietnam Singapore Burma Sri Lanka Nepal North Korea Cambodia Papua New Guinea Laos Macau Brunei Mongolia Bhutan Maldives Other Total
796.18 539.30 385.47 135.94 113.92 71.73 67.73 53.68 39.69 35.45 32.34 26.99 19.62 11.10 10.96 5.84 3.69 2.79 2.11 1.56 1.34 1.02 0.80 0.40 0.10 0.10 2,359.86
33.74 22.85 16.33 5.76 4.83 3.04 2.87 2.27 1.68 1.50 1.37 1.14 0.83 0.47 0.46 0.25 0.16 0.12 0.09 0.07 0.06 0.04 0.03 0.02 0.00 0.00 100.00%
_________________________________________________________________________________________________
Source: www.icongrouponline.com
The Market for Hair Care Shampoo in Asia: 2000 US $ % of Year mln Globe 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2,534.52 2,487.84 2,423.90 2,353.82 2,307.42 2,359.86 2,430.69 2,504.11 2,580.21 2,659.10 2,740.90
Hair Care Shampoo (US $ mln): Thailand 2000 - 2010 % of % of Year Thailand Region Globe
33.14 2000 75.33 32.73 2001 74.51 32.38 2002 73.14 32.06 2003 71.54 31.80 2004 70.51 32.04 2005 71.73 32.36 2006 73.35 32.68 2007 75 33.00 2008 76.69 33.33 2009 78.42 33.66 2010 80.19 Source: www.icongrouponline.com
2.97% 3.00% 3.02% 3.04% 3.06% 3.04% 3.02% 3.00% 2.97% 2.95% 2.93%
0.98% 0.98% 0.98% 0.97% 0.97% 0.97% 0.98% 0.98% 0.98% 0.98% 0.98%
Appendix B Thailand: Hair Care Shampoo in 2005, US $ mln City Bangkok Chon Buri Songkhla Nakhon Ratchasima Chiang Mai Khon Kaen Nakhon Si Thammarat Phitsanulok Hat Yai Total
World Rank 14 435 933
US $ mln 66.78 2.48 0.76
1,150 1,167 1,217 1,361 1,629 1,966
%Country %Region %World 93.11 3.46 1.06
2.83 0.11 0.03
0.91 0.03 0.01
0.45 0.44 0.39
0.63 0.61 0.55
0.02 0.02 0.02
0.01 0.01 0.01
0.28 0.12 0.02 71.73
0.4 0.17 0.02 100
0.01 0.01 0 3.04
0 0 0 0.97
Source: www.icongrouponline.com
Appendix C Raw Materials Quantity Day Chemical Name
Trade Name (Kg)
PEG-150 Distearate
STEPAN PEG 6000 DS
Purpose for which it is used
244.4
To increase the viscosity
Sodium Laureth Sulfate
STEOL CS-230
8,976
Surfactants are surface active ingredients, meaning they can interact with a surface
Disodium Cocoamphodiacetate
AMPHOSOL 2C
8,976
To improve the foaming characteristic.
Cocamidopropyl Hydroxysultaince
AMPHOSOL CS-50
2,692.8
To improve the foaming characteristic.
DL-2,4-Dihydroxy-N-(3hydroxypropyl)-3,3dimethylbutyramide, Butyramide
Panthenol
22.4
To modify these characteristic, manufacturers add fragrance and governmentally approved.
Citric acid
2-Hydroxy-1,2,3propanetricarboxylicacid
112.2
To adjust pH
Sodium hydroxide
Caustic Soda
112.2
To adjust pH
Sodium chloride
Salt or Sea salt
112.2
To adjust viscosity
-
Orange blossom 600
112.2
To add smell aromatic
4-(2-Hydroxy-1naphthylazobenzenesulfonic D & C Orange No.4 acid, Sodium salt)
244.4
To modify characteristic, adding dye.
Benzoic acid, 4-hydroxy,propyl ester
22.4
To preserve
Propylparaben
Appendix D Processes Diagram Waste water
Ground water
DI water
Ingredient
Boiler
Weighting
Air Pollution
Steam heat up to 70oC
Cooling tower Dissolve tank
Steam
Reverse Osmosis
Mixing tank
Condense water
Hot water Lab Test
Wastewater
QC
Holding tank
Bottle Cleaning
Drying
Waste water
Filling
Waste water Packing & Labelling
DI – Deionized QC – Quality Control
QC Dispatch
Appendix E Wastewater Treatment Flow Chart Industrial Process
Primary Treatment
Pretreatment
Industrial wastewater
Screening
Coarse solid Disposal
Equalization & Neutralization
Flow and pH adjustment
Floatation (DAF)
Oil and Grease & Settled Suspended Solid removal
Tertiary Treatment
Secondary Treatment
Biological Treatment (Aerobic)
Secondary Sedimentation
Sludge
Thickener
Dewatering Adsorption (GAC) Landfill Discharge (Reuse)
Equalization & Neutralization
Operation Process
Screening Chemical
Floatation
Flow meter and Control device
Effluent Water
Waste
Effluent
Water Pressure control valve
Waste Water Analysis Effluent Water
Coarse solid
Sludge
Discharge (Reuse)
Secondary Clarification
Primary Landfill
Return Sludge
Activated Carbon
Effluent Water Analysis
Air blower
Thickener Dewatering Sludge Cake
Flowchart of Wastewater Treatment Plant
Appendix F Figure G: Layout of Waste management Unit Route
Disposal Waste
Recycle Waste
Empty bin 2
Empty container to be sold
Empty Bin Truck Parking 1
Truck Parking 2
Empty Bin 1
Storage Tank
Shrink Wood
Toilet Room
Incinerator Building
Garden Equipment Room Rest Room
SHAMPOO MANUFACURING UNIT INTRODUCTION
Indian shampoo market is valued at Rs. 1,207 crore in year 2001-02. Shampoo market in India has grown at compounded annual growth rate of about 10% during period 1997-98 to 2001-02. NER market for Shampoo is valued at Rs. 33.4 crore in year 2001-02 and s for about 2.8% of the domestic shampoo market. NER market has grown at a CAGR of about 16% during the period 1997-98 to 2001-02. Based on the demand-supply gap analysis, Consumer preferences/ profile and consumption pattern, the shampoos have significant demand in the North-East Region (NER) as well as at national level. The following shampoo variants can be manufactured at the proposed manufacturing unit: (a) Normal Shampoo (b) Shampoo with Conditioner Apart from the basic classification indicated above, various other types of shampoos can be manufactured like- anti-dandruff shampoos, herbal based shampoos, etc. It is important to note that, in the case of shampoo manufacturing unit, with the same infrastructure, a unit can manufacture a multiple variants without significant changes in the equipment, tools and processes. MARKET POTENTIAL
Exhibit 1 provides the shampoo market size in of all India domestic market and NER market in year 2001-02. Exhibit 1 Shampoo Market Size (2001-02) Particulars Shampoo Total (Shampoo) Source: AFF Research
(Unit: Rs. Crore) All India NER Market Size Market Size 1,207 33.4 1,207 33.4
Hindustan Lever Limited (HLL) is the only large organised shampoo manufacturer in NER and it is catering to the national demand from its facility in Doom Dooma in Tinsukia district in upper Assam. All other organised players are meeting the demand of NER from sources/ manufacturing facilities outside the NE region. The estimated demand-supply gap for shampoo products is about 34% of the total NER shampoo market (2001-02) and is valued at Rs. 11.3 crore in the year 2001-02. The domestic shampoo market has grown at a CAGR of about 10% during the past the period 1997-98 to 2001-02. Considering that the market will grow at the same growth rate in next 10 years, the domestic shampoo market in India is estimated to be Rs. 3,000 crore in the year 201112. The NER shampoo market is estimated to grow at about 12% over next 10 years. In the year 2011-12, the NER market for shampoos is estimated to be Rs. 104 crore. PLANT CAPCITY AND PRODUCTION TARGETS
Plant capacity and production targets for the proposed unit have been arrived at based on following factors:
(a) Product Mix (based on various shampoo products proposed for manufacturing) (b) Demand : Supply Gap (in the North East Region) (c) Minimum Economic Plant Size- The economic size for manufacturing for NER region is 200-Kg batch size (Based on the discussion with large shampoo manufacturers and various units involved in contract manufacturing). Rated Capacity of the key equipment The proposed plant will have a batch size of 200 kg in one shift and will operate on two-shift basis. With annual sales realisation of Rs. 2.6 crore, the manufacturing unit will be ing for about 15 to 16% of the total NER shampoo market (considering the retail value of the products as the unit will be involved in contract manufacturing) and about 45% of the demandsupply gap of NER shampoo market in year 2001-02. It is proposed that the unit would be involved in contract manufacturing for a larger shampoo manufacturing/ marketing company. It would primarily cater to the needs of the NER. There is an opportunity for about 2 to 3 shampoo manufacturing units of similar size in NER. Summing up: Batch Size: 200 Kg. on a single batch basis (two batches per day) Plant Capacity: 11.4 lakh bottles per annum (@ 100 ml per bottle) Capacity Utilisation: 50% (Year 1) Full Capacity Utilisation: Year 2 RAW MATERIALS AND INPUTS Raw Materials
Raw materials used in the process depend upon the type of shampoo manufactured. Typically, in any shampoo manufactured there are two types of raw materials used: Active Ingredients (AIs) – These are the chemicals used in manufacturing the shampoo. Active ingredients used in the manufacturing process are different for different variants. Commonly used active ingredients include emulsifying/ suspending agents like Ammonium/ Sodium Lauryl Sulfate, Zinc Pyrithione, etc. Others- Other ingredients include Citric Acid, Sodium Hydroxide, Ammonium Chloride, Fragrances, Pigments, etc. Water
The requirement of water for 200-kg batch shampoo-manufacturing unit is approximately 3,000 litres per day. ELECTRICITY Approximate power requirement of a 200-kg batch shampoo-manufacturing unit is 40 kW, which can be availed from the nearest sub-station of respective State Electricity Board (SEB). MANUFACTURING PROCESS
The flow chart for the manufacturing process is as shown below in the Exhibit 2. The shampoo manufacturing process is a batch process. Initially, the raw material goes through a Quality Check (QC) and if approved various Active Ingredients (AIs) and other raw materials are dispensed for processing. Initially, active ingredients and other raw materials are taken into a vessel known as ‘Mixing Vessel’. In this vessel the raw materials are mixed with hot water. The water used for this process should be De-mineralised and free from any kind of impurities. The mixing process is carried out at a specific temperature (about 75 to 800 C). Subsequently, the solution is taken to another vessel (known as ‘Side Vessel’) and other ingredients like Fragrances, Pigments, etc. are added. The mixture is agitated for about 20-30
minutes to form a homogenous solution. If required, Citric Acid or Sodium Hydroxide is used to adjust pH of water. Finally, the solution is brought back to room- temperature and is ready for packing. Before, proceeding with packing, the solution goes through an Intermediate Process Quality Check (IPQC) related to the efficacy of the product. Exhibit 2 Flow Chart for Shampoo Manufacturing Process
Raw Material Sampling QC Not Approved
QC Test
Raw Material Handling
QC Approved Raw Material Dispensing
Mixing Vessel
Mixing
Raw Material Mixing Section
Hot Water
Side Vessel Mixing/ Agitation Recover IPQC Not Approved Reject
Fragrances, Preservatives, Dyes, etc.
IPQC Test IPQC Approved Primary Packing
Product Packing
Inspection (If required) Product Information Leaflet (if required)
Secondary Packing
QC Notapproved Re-packing
QC Test QC Approved Product
Thereafter, the solution is transferred to the packing assembly through a pipeline. Normally, the capacity of the shampoo product assembly line is dependent on the throughput of packing machinery. Primary Packing for shampoo products can be done in the following ways depending upon the requirement-
Bottle/ Container packing Sachet/ Pouch packing After filling the shampoo in a bottle/ sachet, it is sealed appropriately. In the primary packaging section, the various manufacturing details are printed onto the primary pack like batch number, date of manufacturing, maximum retail price of the product, etc. as required by The Drugs and Cosmetics Act. Additionally, the product is sent for secondary packing, if required. In most of the cases secondary packing is done manually. Also, product information leaflet is inserted inside secondary packing, if required. QUALITY, STANDARDS AND TECHNOLOGY
The plant should adhere to the norms laid out in Indian Good Manufacturing Practices (GMP) standards under The Drugs and Cosmetics Act. The manufacturing unit should adhere to the norms laid out in The Drugs and Cosmetics Act. However, for the products, which are manufactured for exports markets should meet stricter norms, for example US FDA in case of the United States, etc. It should be noted that as the proposed unit would be involved in contract manufacturing, the manufacturing process related technology would be provided by the principal organisation for which the contract manufacturing would be carried out. The proposed unit would not be involved in the basic formulations related research in the initial years. Additionally, the manufacturing technology for NE region would not differ from other regions as the same is not region specific. As far as the shampoo manufacturing equipment is concerned, the process equipment is widely available in the country. KEY ASSUMPTIONS The plant is a single assembly line unit. The unit operates in two shifts, eight working hours per shift The unit operates for 300 working days in a year The unit has a batch size of 200kg. The land is taken on a long-term lease. As per norms, fixed charges for land development are considered at Rs 250 per sq. mtr. Additionally, lease rentals are assumed at Rs. 3.5 per sft. The costs of the raw materials, packing materials, utilities like fuel, electricity, etc are considered constant. Cost of various other activities like manpower is assumed to be constant. The sales realisation from finished goods is also assumed constant for 10 years from the year of commencement . Sr. Items Value Basis No. 1. Land development Development Assam Industrial Development charges: Rs. 250 Corporation per sq. mtr. Lease Rentals: Rs. 3.5 per sft. 2. Machinery and equipment cost --Costs of leading machinery suppliers inclusive of installation charges 3. Miscellaneous fixed assets --Industry norm 4. Provision for contingency 10% of total capital Assumption expenditure
5.
Raw material prices
6. 7. 8. 9. 10. 11. 12. 13.
Labour Power and fuel Repair and maintenance Inventory: Raw materials (RM) Inventory: Finished goods (FG) Bills receivable Creditors Product distribution expenses
14.
Other Expenses
---
15.
Interest on working capital
9%
16.
Subsidy on plant and machinery
30%
17.
Subsidy on insurance
100%
18. 19. 20. 21.
Subsidy on Income Tax Debt : Equity ratio Interest on term loan Margin money for working capital RM cost
100% 60 : 40 12% 25%
22.
FINANCIAL ASPECTS A. Land and Site Development Sr. Particulars No . 1. Land and Site Development Total
--------2 Months 1 Month 1 Month 1 Month 7%
Landed cost (including transportation) Prevalent rate in NER Prevalent charges in NER Industry norm Industry norm Industry norm Industry norm Industry norm Taking into consideration average distribution costs. Includes cost of conversion during manufacturing (i.e. utilities) and variable product distribution costs 3% subsidy on working capital loan under the Central Interest Subsidy Scheme, 1997 Under the Central Capital Investment Subsidy Scheme, 2007 Under the Central Comprehensive Insurance Scheme, 2007 Industry norm
Landed cost at the factory gate (inclusive of transportation cost and excise duty)
Units
Unit Rate
500 sq. m.
Rs. 250/ sq. m.
Total (Rs.)
125,000 125,000
B. BUILDING AND CIVIL WORKS Sr. No . 1.
Particulars
Building and Civil Work Total
Units
400 sq. m.
Unit Rate
Rs. 4,000/ sq. m.
Total (Rs.)
1,600,000 1,600,000
C. PLANT
AND MACHINERY
Sr. No.
1 2 3 4
5 6 7
Particulars
Quantity (Nos.)
Manufacturing Equipment Mixing Vessels Side Vessel Bottle Filling/ Packing Machine (16 Station) Sachet Filling/ Packing Machine
Unit Cost (Rs.)
Total Cost (Rs.)
1 nos. 1 nos. 1 nos.
1,500,000 1,000,000 500,000
1,500,000 1,000,000 500,000
1 nos.
500,000
500,000
Utilities/ Misc. Other Equipment Electrification, Control s and Cabling, Transformer, etc. Water Plant, Generation and Distribution Steam Generation Units, Compressors
1,000,000 2,000,000 600,000
Total Machinery, Utilities and 7,100,000 Equipment Note: Above mentioned equipment is indicative for the proposed shampoo- manufacturing unit
D. MISCELLANEOUS FIXED ASSETS Sr. No. 1 2 3 4
Particulars Furniture and Fittings Office Equipment Fire Fighting Equipment Cost of Tube-well Total Misc. Fixed Assets
Total (Rs.) 25,000 100,000 50,000 20,000 195,000
E. PRELIMINARY AND PRE-OPERATIVE EXPENSES Sr. No. Particulars 1 Detailed Techno-economic Feasibility Study 2 Loan Processing Fees 3 Establishment expenses Total Preliminary & Preoperative Expenses
Total Cost (Rs.) 100,000 10,000 200,000 310,000
F. PROVISION FOR CONTINGENCY Provision for contingency- @ 10% of the total capital investment OPERATING COST A. RAW MATERIAL Raw materials consumed for manufacturing any shampoo are of two types-
Active Ingredients (AIs) Others (like binding materials, fragrances, pigments, etc. used in manufacturing process) Sr. No. Particulars Units Value 1 Average cost of raw material Rs. per Kg. 110 2 Raw materials consumed per batch Kg. 200 3 Number of batches per year Nos. 600 Total Raw Materials Consumed per Annum Rs. 13,167,000 Note: Above raw material consumption pattern is calculated at 100% capacity utilisation of the manufacturing unit working for 300 days per annum and two shifts per day basis.
B. LABOUR Sr. No.
Particulars
Qualification
Direct Labour 1 Factory Manager 2 3 4 5 6 7
Production Manager Chemists Engineer and Technicians Skilled Workers Semi-skilled and Un-skilled Workers Other Misc. Personnel Total Direct Labour Cost Indirect Labour 8 Finance Manager
BE/B.Tech + MBA/MMS BE/B.Tech BE/B.Tech BE/B.Tech BE Matriculate
Nos.
Salary Annual per Manpower Month Cost (Rs.) (Rs.)
1
20,000
264,000
1 2 4 2 8 8 26
15,000 12,000 10,000 5,000 3,000 2,500
198,000 316,800 528,000 132,000 316,800 264,000 2,019,600
MBA/MMS + 1 15,000 198,000 CA 9 ant CA 1 10,000 132,000 10 Business Development Executives Graduate 2 8,000 211,200 11 Security Personnel 2 3,000 79,200 Total Indirect Labour 6 620,400 Total Cost of man-power 32 2,640,000 Note: (1) Manpower cost also includes Perks @ 10% of annual salary (2) There is no specific requirement of other highly skilled and specifically trained manpower apart from the normally available qualified manpower as mentioned above at the proposed manufacturing location.
C. POWER AND FUEL Particulars
Units
Consumption Unit Cost Annual Cost per day (Rs.) (Rs.) Electricity (40 kW) Units 527 6 948,000 Furnace Oil Litres 75 8 180,000 Water Litres 3,000 0 0 Total 1,128,000 Source: It is assumed that ground water is tapped through tubewell and hence water is considered free of cost.
D. OTHER EXPENSES Sr. No.
Particulars
Total Cost (Rs.)
Sr. No.
Particulars
Total Cost (Rs.)
Fixed Repairs and maintenance Advertising and promotion expenses Lease rent for land Office istration and other misc. expenses Professional and legal fees Bank charges and commissions Printing and stationary Insurance and taxes Total other expenses E. Total Working Capital 1 2 3 4 5 6 7 8
Particulars Raw Materials Packing Materials Finished Goods Bills Receivables Outstandings
Norms 2 Months of raw materials 2 Month of packing materials
609,750 500,000 210,000 100,000 300,000 20,000 100,000 100,000 1,939,750
Total (Rs.) 2,194,500 790,020
1 Month of cost of production 1,711,710 1 Month of sales value 2,194,500 1 Month of Raw Material and Packing Material 1,492,260
Total 5,398,470 Note: 1. Working capital requirement indicated above is at 100% capacity utilisation. 2. Margin money @ 25% of total Working Capital – Rs. 1,349,618
CAPITAL INVESTMENT The capital investment required for the project is Rs.1.16 crore. The break-up of the capital investment is indicated in below. Sr. No. 1 2 3 4 5 6 7
Particulars
Total Value (Rs.)
Land and Site Development Cost Building and Civil Works Plant and Machinery Misc. Fixed Assets Preliminary and Pre-operative Expenses Provisions for Contingency Margin Money for Working Capital Total Cost of the Project
Means of Finance Total Cost of Project Promoter’s Equity (40%) Loan from Bank/FI (60%)
125,000 1,600,000 7,100,000 195,000 310,000 933,000 1,349,618 11,612,618
Rs. 11.61 lakhs Rs. 4.64 Rs. 6.97
Note - * Transportation subsidy is added to Gross Profit while calculating the profitability of the unit
FINANCIAL ANALYSIS A. Cost of Production
Sr. No. 1 2 3 4 5
Particulars
Total (Rs.) 13,167,000 4,740,120 2,019,600 1,128,000 364,397 21,419,117
Raw materials Packing materials istrative overheads Other overheads Interest on working capital Total cost of production Note: Cost of production indicated above is at 100% capacity utilisation. B. Turnover
Annual sales realisation of the manufacturing unit with the assumed product mix is illustrated below. Sales realisation at 100% capacity utilisation is around Rs. 2.63 crore. Sr. Particulars No.
No. of Bottles (Nos.)
Sales Realisation per Bottle (Rs.)
Total Sales Realisation (Rs.)
1
Shampoo (Various variants) 1,140,000 26,334,000 Total 1,140,000 23.1 26,334,000 Note: For simplicity purpose all the sales mentioned above are in bottle of 100-ml weight C. Profit and Loss Statement for 10 Years (Unit: Rs. lakhs) Particulars Capacity Utilisation Sales Realisation Operating Costs RM and PM Costs
Formula
A B
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 50% 100 100% 100% 100% 100% 100% % 110 263 263 263 263 263 263 75
179
179
179
179
179
179
Labour Costs
20
20
20
20
20
20
20
3. Other Overheads Interest on Working Capital Gross Profit incl. Transport Subsidy Interest Depreciation PBT Tax PAT Cash Profit GP Margin NP Margin
6 2
11 4
11 4
11 4
11 4
11 4
11 4
C=A-B
7
49
49
49
49
49
49
D E F=C-(D+E) G H=F-G I=H+E J=C/A K=H/A
8 12 -12 0 -12 0 7% -11%
8 10 31 0 31 42 19% 12%
7 9 34 0 34 42 19% 13%
6 8 36 0 36 43 19% 14%
5 7 37 0 37 44 19% 14%
4 6 39 0 39 45 19% 15%
3 5 41 0 41 46 19% 15%
Note:1. Figures indicated above are rounded-off 2. Annual sales values indicated above are after taking into consideration opening and closing stocks
Return on Investment (ROI): 32% D. Breakeven Analysis
The breakeven analysis for the proposed shampoo-manufacturing unit is indicated below. The unit achieves operational breaks-even in the first year of operations.
Particulars Capacity Utilisation Sales Realisation Variable Cost of Sales Direct Material
Unit
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
Yr 7
(%) 50% Rs. lakhs 110
100% 100% 100% 100% 100% 100% 263 263 263 263 263 263
55
132
132
132
132
132
132
20
47
47
47
47
47
47
6
11
11
11
11
11
11
20
20
20
20
20
20
20
Interest on Working Capital Total Variable Costs
Rs. lakhs Rs. lakhs Rs. lakhs Rs. lakhs Rs. lakhs Rs. lakhs
2
4
4
4
4
4
4
102
214
214
214
214
214
214
Contribution
Rs. lakhs 7
49
49
49
49
49
49
7
12
12
12
12
12
12
6
6
6
6
6
6
6
6
6
6
6
6
6
6
8
8
7
6
5
4
3
27
32
31
31
30
29
28
168 263
163 263
159 263
154 263
150 263
64%
62%
60%
59%
57%
Packing Cost Conversion Cost Direct Labour
Fixed Costs Other overheads (excl. Repairs and Maintenance) Repairs and Maintenance Manpower Cost Interest on Term Loan Total Fixed Cost Break Even Point Actual Sales Realisation Break Even Sales at % of Capacity
Rs. lakhs Rs. lakhs Rs. lakhs Rs. lakhs Rs. lakhs
Rs. lakhs 405 173 Rs. 110 263 lakhs % 154% 66%
Note: 1. Figures indicated above are rounded-off 2. Annual sales values indicated above are after taking into consideration opening and closing stocks SOURCE OF RAW MATERIALS AND PACKING MATERIALS
The raw materials that are required for manufacturing shampoo products are not locally available in NER. In case of the herbal shampoos, certain raw materials like Heena and other herbs are available in NER (in hilly states like Meghalaya, Arunachal Pradesh, etc.) through the Government approved agencies. The closest source for procuring raw materials (apart from herbal ingredients) is Hyderabad or Delhi. As far as packing materials are concerned, few vendors are present in NER but they are relatively small in size. Additionally, the raw materials and packing materials can be procured from West Cluster (Mumbai, Ahmedabad, etc) but the cost of transportation will increase substantially. Mentioned below are few sources of raw materials-
EI Dupont India Limited Sahar Plaza Complex, 7Th Floor, Bandra (E), Mumbai- 400067 Tel: +(91)-(022)-28390770 Rolex Lanolin Products Ltd. 52/58 Babu Genu Road, 24-26 Jivraj Shamji Building, Mumbai- 400002 Tel: +(91)-(022)-22012251, 22017395 Fax: +(91)-(022)-22015990 Silicones Industries (India) Limited 502, Arcadia Building, Nariman Point, Mumbai-400021 Tel: +(91)-(022)-22855033, 22855034 Fax: +(91)-(022)-22821779 Standard Silica Pvt. Ltd. Industrial Assurance Building, 5Th Floor, J. Tata Road, Churchgate, Mumbai- 400020 Tel: +(91)-(022)-22821113 Suru Chemicals and Pharmaceuticals 11 Sona Udyog, P. P. Road, Andheri (E), Mumbai- 400069 Tel: +(91)-(022)-28378500 Fax: +(91)-(022)-28376321 Email:
[email protected] India Dye Chem D 9, Ground Floor, Rana Pratap Bagh, G. T. Road, Delhi- 110007 Tel: +(91)-(011)-27244736 Fax: +(91)-(011)-27459097 Jayant Vitamins Limited 12, Bhargava Lane, Civil Lines, Delhi- 110054 Tel: +(91)-(011)- 22911653, 22519414 Mentioned below are few sources of packing materials-
Anil Tubes 524 Sandharst Building, S V P Road, Opera House, Mumbai- 400004 Tel: +(91)-(022)-23896559 Fax: +(91)-(022)-23802286 Email:
[email protected] Classic Crown & Closures 21, Crescent I E, Kherani Road, Saki Naka, Andheri (E), Mumbai -400072 Tel: +(91)-(022)-28522859 SOURCE OF MACHINERY AND EQUIPMANT Most of the machinery for manufacturing shampoo products is manufactured locally. Most of the machinery manufacturers are based in Mumbai, Ahmedabad. Smaller clusters for machinery manufacturers include Delhi, Haryana, Kolkata, etc.
PROCESS EQUIPMENT Autopack Machines Pvt. Ltd. 101 C, Poonam Chambers, Dr. A. B. Road, Worli, Mumbai- 400018 Tel: +(91)-(022)- 24974800, 24934406 Fax: +(91)-(022)- 24964926 Email:
[email protected] Packing Machinery Pvt. Ltd. M/ Celler, Ambekar Nagar, G. D. Amsedkar Road, Parel, Mumbai- 400012 Tel: +(91)-(022)- 24162551 Fax: +(91)-(022)- 24168516 Spanpak Systems B 136, Ghatkopar, Industrial Estate, LBS Marg, Ghatkopar (W), Mumbai- 400080 Tel: +(91)-(022)- 28597620 Ambica Engineering Works Plot NO. 1804, Phase III, GIDC Industrial Area, Vatva, Ahmedabad, 380045 Tel: +(91)-(079)-22744262 Fax: +(91)-(079)-22744262 Cach Machinery Co. Pvt. Ltd. Plot No. 3604/ 05, GIDC Phase IV, Vatva, Ahmedabad, 382445 Tel: +(91)-(079)-25831491 Emkey Engineering Works B 33, DDA Shed, Okhla Industrial Area, Phase II, New Delhi- 110020 Tel: +(91)-(011)- 25415882 Mitsubishi Heavy Industries Limited 1St Floor, Gopal Das Bhawan, 28- Barakhamba Road, New Delhi- 110001 Tel: +(91)-(011)- 23354465 Swastik Industries A 76, Clock Tower, Hari Nagar, New Delhi-110064 Tel: +(91)-(011)- 27538203 AUXILIARY EQUIPMENT Thermax (India) Limited Thermax House, 4, Mumbai-Pune Road, Shivajinagar, Pune- 411019 Tel: +(91)-(020)- 25512122 Fax: +(91)-(020)- 25512242 Website: www.thermaxindia.com Atlas Copco (India) Limited Sevanagar, Dapodi, Pune- 411012 Tel: +(91)-(020)- 27146416/17 Fax: +(91)-(020)- 27146637 Website: www.atlascopco.com Aquatech India Limited Plot No. 3, Baner Park, Near D. P. Road, Aundh, Pune- 411007 Tel: +(91)-(020)- 27292103, 27291104 Fax: +(91)-(020)- 7291805 Website: www.aquatech.com
Email:
[email protected]
Courtesy : NEDFi
การจัดทํามาตรฐานในกระบวนการผลิตแชมพู Development of Standard Procedure for Shampoo Production จักรพันธ บุญกิตติพร 121 ถ.เชียงใหม แขวงคลองสาน เขตคลองสาน กทม. 10600 โทรศัพท 0898912824, 024397344 E-mail:
[email protected]
บทคัดยอ งานวิจยั นี้มวี ตั ถุประสงคเพื่อศึกษาการจัดทํา มาตรฐานสําหรับกระบวนการผลิตแชมพูในโรงงาน เครื่องสําอางเพื่อการปรับปรุงประสิทธิภาพในเรื่องของ Right First Time ขอบขายของการวิจัยจะเนนถึง กระบวนการผลิตแชมพูในกลุมเพื่อใหผมนุมสวย ซึ่ง เปนกลุมที่มกี ารผลิตมากทีส่ ุดของบริษทั ที่เปน กรณีศึกษา โดยจะเริ่มตั้งแตกระบวนการเตรียม วัตถุดิบจนกระทั่งถึงการถายผลิตภัณฑไปยังถังเก็บ การวิเคราะหลักษณะขอบกพรองและผลกระทบ (Failure Mode and Effect Analysis, FMEA) และ แผนภูมกิ ารวิเคราะหเหตุและผล (Cause and Effect diagram) ไดถูกนํามาใชในการวิเคราะหและระบุถึง ปญหาในกระบวนการผลิตแชมพู จากการศึกษามีการ พบวามีปญหาหลักๆที่สงผลถึงเรื่อง Right First Time อยู 4 ประการ ซึ่งก็คือ 1.คุณภาพของวัตถุดิบในการ ผลิต 2.ความบกพรองของวิธีการทํางาน 3.ความไม เที่ยงตรงของเครื่องวัดน้ําหนักในหมอผสม 4.ความ ผิดพลาดจากคน ปญหาเหลานีไ้ ดนาํ ไปสูปญหาใน เรื่องของ Right First Time และ ระยะเวลาในการผลิต ซึ่งสงผลกระทบตอประสิทธิภาพของการผลิต จากผล การวิเคราะหนําไปสูการจัดทําขั้นตอนมาตรฐานซึ่ง
เปรียบเสมือนเปนตัวควบคุมคุณภาพในกระบวนการ ผลิตแชมพู ผลจากการทําขั้นตอนมาตรฐานนีไ้ ดชวย ใหเรื่องของ Right First Time ในการผลิตปรับปรุงจาก รอยละ 60.12 ไปเปนรอยละ 78.24 และระยะเวลาใน การผลิตลดลงจาก 151 นาที เปน 116 นาทีซึ่งคิดเปน รอยละ 23.18 Abstract The purpose of this study is to develop standard procedure for shampoo products in cosmetic manufacturing for the improvement in term of Right First Time. The scope of this study is focused on soft, clean and beauty shampoo production, which is the large volume shampoo production of the case study company that starts from raw material preparation step until discharging to storage tank. Failure Mode and Effect Analysis (FMEA) and Cause and Effect diagram are used as quality tools for problem identification and analysis in shampoo production. Based on this study, it was found that there were 4 major problems that impact to production Right First Time. They include 1.
quality of raw material 2. standard procedure deficiency 3. inaccuracy of load cell in main mixer 4. human error. These problems lead to Right First Time and production batch time problem which affect to production. The result of analysis leads to the development of standard procedures which serve as quality control for shampoo production. This implementation can help improve Right First Time and production batch time in the shampoo production. The Right First Time can improve from 60.12% to 78.24%. Moreover, production batch time also can be reduced from 151 minutes to 116 minutes which is 23.18%.
develop their competition edge to compete with international competitors and also the local one. Failure Mode and Effect Analysis (FMEA) is studied in this study as a tool to help developing process standard in cosmetic manufacturing to improve production management in of quality, cost and time. Production process will be analyzed to identify potential failures that affect to the product quality and process performance. Cause and effect of that failure including process control will also be identified and evaluated. Data collection will be considered and apply to achieve process standard of production.
1. Introduction At present, the competition in many businesses is very intense. Companies have to find the way to gain more market share and profits to stay in the business. Manufacturing efficiency improving including production cost reducing plays vital part on any industries. Cosmetic industry is also one of them that can not survive without efficient production management. Since we live in global village now, process improvement is even more significant important. China and India are fast developing country and they have quite low cost on labor and many resources to develop their businesses. As a result, companies in Thailand need to
2. Statement of the problem From cosmetic plant data, it can achieve the Right First Time only 60.12% for Shampoo products which is relatively low. Viscosity, pH, %active, density, color standard are product parameters that must be controlled to get the right product quality and they have to be adjusted several time before getting the proper specification. This also affect to the production batch time since it takes a lot of time per each adjustment. Consequently, it impacts to the productivity and efficiency of cosmetic plant. Production batch time of shampoo products should be improved as well since shampoo is the main product of this plant. Batch time
reduction can be a huge benefit to the factory. Energy cost such as electricity, water and steam will also reduce as batch time reduces as well. Since Right-First-Time problem can affect to the production batch time problem, it should be the focus improvement of this research. In addition, there are other problems occurred in the cosmetic plant such as machine break down. However, it does not influence too much on the factory. Standard procedure is needed to be developed for control raw material specification and mixing process of shampoo production to improve this production Right First Time. Table 1: Percentage of Right First Time of shampoo products
Table 2: Production batch time of shampoo products
3. Research Methodology Process FMEA is applied to eliminate or minimize all possible causes that have impact to
Right First Time problem in shampoo production. Process FMEA Table will be used in documentation and facilitating the FMEA process. The FMEA concept is “team approach”, so the FMEA team must be crossfunctional and they must be willing to contribute to the project. The team in this study consists of production engineer, process development supervisor, product development supervisor and quality assurance supervisor. FMEA team will brainstorm all potential causes of failure for each process step of shampoo production process that affect to Right First Time problem. This process will be facilitated by using process flow chart of shampoo production. Cause and Effect diagram technique will be used to categorize the team’s ideas. The ideas would be classified into 5 categories of cause and effect diagram – material, man, measurement, method and machine. The information from this analysis will be used to fill in the columns of the process FMEA table in relationship to the potential effects of failure and current process control. Recommended actions need to be filled in process FMEA table. Responsibility and Target Completion Date is also important when asg to appropriate team member.
Table 3: Severity evaluation criteria
Table 4: Occurrence evaluation criteria
Figure 1: Process flow chart of shampoo production Table 5: Detection evaluation criteria
Figure 2: Cause and Effect Diagram
Since the case study company has their own evaluation criteria about the score of severity, occurrence and detection, the author will use those criteria in rating the score in order to prevent the confusion when implement this FMEA process to the case study company.
The FMEA team agrees to pursue failures on RPN value > 18 based on maximum score for the RPN is 125 (5*5*5 from severity, occurrence and detection). In addition, RPN score at 18 come from acceptable level of severity at 2, occurrence at 3 and detection at 3. It means that the RPN of failure that has higher score than 18 must be addressed and taken into consideration to find solution and improvement.
Table 6: Example of process FMEA for shampoo production
Table 7: Summary of process FMEA that the RPN value is higher than 18
Table 8: Summary action for FMEA project Production
From Summary of process FMEA that the RPN value is higher than 18, 15 items of high-risk area are addressed. Therefore, the FMEA team can have meeting to take proper actions to find the solutions for those failures. At last, the action plan is created for each related departments. In addition, items and standard procedure column of action plan in table 8 are represented as the action to improve the failures in table 7 and standard procedure generated to solve the problems respectively.
Quality Assurance
Process Development
After the recommended actions are finished, the FMEA team implements them in shampoo production. The team collects the data of Right First Time problem in shampoo production and compares with before implement the improvement.
4. Results Prior to FMEA implementation, shampoo production in this case study achieves the Right First Time only 60.12% of total batches. After the FMEA implementation, this shampoo production can achieve the Right First Time target at 78.24% of total batches. Moreover, production batch time also reduce from 151 to 116 min after the implementation. Production can save time from quality control time because of higher Right First Time achievement. This will lead to batch time reduction for shampoo production. As a result, this company can save production batch time for 23.18% when compare with prior to the implement starting. Therefore, this implementation can help improve Right First Time and production batch time in the shampoo production. This will lead to reduction of production cost and help the company has more competitive power to compete in the market and gain more profit.
% Right First Time before implementation
39.88%
60.12%
Right First Time
Non- Right First Time
% Right First Time after implementation
21.76%
78.24%
Right First Time
Non- Right First Time
Figure 3: Comparison of Right First Time between before and after the implementation
Figure 4: Comparison of production batch time between before and after the implementation
5. Conclusion Main problems of shampoo production are quality of raw material and standard procedure deficiency which can be controlled
and improved by these new standard procedures. The standard procedure for shampoo production would be summarized as following. Surfactant 1. This raw material needs to be completely dissolved in order to let shampoo has its fully cleansing property, so the procedure to ensure surfactant dissolution is generated. 2. In order to improve Right First Time of shampoo production, surfactant must be added at 12.2%. Standard procedure for percentage of active measurement for surfactant would help team to know amount of surfactant that would be added in the production. Preparation of suspending agent The preparation process of suspending agent must cover an alternative material problem. Since the alternative material is quite hard to dissolve in the mixer, new standard procedure for preparing this material has to be generated. pH modifier Standard procedure for % pH modifier measurement would help control pH modifier specification and improve Right First Time. Functional material
This material will help shampoo provide conditioning effect to consumer. The right amount of functional material can be added into main mixer by new standard procedure. Viscosity modifier 1. To improve Right First Time for shampoo production, viscosity modifier needs to be controlled at 25%. The new mixing procedure can help team to control this material. 2. The procedure for percentage of viscosity modifier measurement is generated. Amount of water Amount of water for flushing in the shampoo production can lead to inconsistent of %AI in shampoo batch. Therefore, team will pre-weigh water for flushing in shampoo batch follow by new standard procedure instead of flushing in different amount as operators usually do. From implementing these standard procedures, there is improvement in term of production Right First Time and production batch time. Base on the result, Right First Time of this shampoo production has increased from 60.12% to 78.24%. Moreover, Production batch time is also reduced from 151 minutes to 116 minutes which is 23.18% batch time reduction. From these
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