CHE 512 Plant Design

Engr. Lina D. dela Cruz Chemical Engineering Department Technological Institute of the Philippines

Plant Design and Feasibility Guidelines

Contents
XI. Conclusion XII. Appendices XIII. Bibliography XIV. Curriculum Vitae of Authors

I. Title Page
II. Approval Sheet III. Acknowledgement IV. Dedication V. Table of Contents VI. Introduction VII. Management Study VIII.Market Feasibility study IX. Technical Feasibility Study X. Financial Feasibility Study

Management Study
This should contain the following: -form of ownership -organization structure from top management, staff and workers with duties and responsibilities -company policies to include hiring, training and salary scale

Form of Ownership

1. 2. 3. 4. 5. 6. 7. 8.

Refer to the Corporation Code of the Philippines (Sec. 14. Contents of the Articles of Incorporation) to include the following: Name of the Corporation Vision/Mission statement Company logo Office and plant location/address Terms for which the corporation will exist Names with the nationalities and address of incorporators Names, nationalities and address of the persons who will act as directors or trustees If it is a stock, the amount of its authorized capital stock in peso

Form of Ownership
8. If it is a stock, the amount of its authorized capital stock in peso , number of shares with its value and the names, nationalities and residents of original subscriber, and the amount subscribed. 9. Articles of incorporation

Business Organization
Shall be divided into two: 1. Table of Organization Chart Pre operating period 2. Table of Organization Chart-Operating Period

Business organization must also include: -Duties and Responsibilities of each department/units -Job description (Refer to Attachment 001) -Company Rules and Policies-to include Human Relations (HR) policies in selection, training compensation, benefits and other related items -Time Table of all projected Activities (Refer to Attachment 002)

Attachment 001-Job Description and Specifications

Position Title Salary Grade Department Reporting relationship Major duties performed Job Specifications: -minimum educational requirement -minimum work experience, years -Skills and competencies required

Attachment 002 Project Time Table

Activity Responsible Duration Expected start date Expected end date

Project Time Table

After filling the table with the activities to bee done, make a detailed description of each activity, who is responsible and the time frame.

Market Feasibility
The Market Feasibility study should be able to present following data: -size and characteristics of the market -demand for the product -supply available -competition

Market Description

Brief description of the market to describe the buyers and users of the product and locations to distribute/sell the product

Market Demand
Product Demand Source: 1. Direct demand present consumption of the product; data from government agencies such as DTI, SEC, and NSO. 2. Derived demand products with no available consumption data for the past years; can consider consumption of finished product where your product can be considered to be used.

Statistical Projection for the next 10 years must be used to determine projected demand or consumption. Historical demand for the past 10 years must also be determined. Historical supply for the past 10 years must also be determined

Attachment 004 Historical demand

Year Demand(indicate units to be used)

Attachment 005 historical supply

Year Supply (indicate units)

Attachment 006 Statistical Projection Year Projected

demand (indicate units)

Market Environment
Must include the following: 1. Selling price study indicate the import and domestic prices for the past 10 years with the high and low season activities 2. Competitiveness of the product 3. Methods of transportation of the product 4. Channels of distribution 5. General trade practices which includes the existing market practice of competitors.

Proposed Marketing Program

1.

2.
3. 4.

5.

To outline the actions to be done to achieve specific goals to include: Preposition Product Price Place Promotional activities

Projected sales
Include expected annual sales volume for the next 10 years, considering the demand and supply position, the competition and the laid out marketing program. Refer to the next slide for format

year

demand

supply

price

%marke t share

Sales,unit

Unit price

Sales pesos

Product Specification or TECHNICAL FEASIBILITY

The technical feasibility should contain data that will establish whether or not the plant requirements can be fulfilled with regards to: -manufacturing know how -equipments and materials to be used -facilities and other utilities The technical feasibility study will also be the basis for evaluating the economic feasibility particularly with regards to cost and profit.

Product specification

This includes the physical, chemical, microbiological and other applicable properties which will describe the products to be sold. It also includes the pack or sizes how the product will be offered, material data sheet, the handling and storage requirements, toxicity and shelf life. Please refer to the next slide for the suggested format.

Product specification format

Product Name Description Physico-Chemical AnalysisPack Size Shelf life Handling and storage conditions Product Regulatory Compliance Material Safety Data Toxicity _________________ _________________ _________________ _________________ _________________ __________________ __________________ __________________ ___________________

Packaging

Packaging must include description of materials to be used for packing the product. It must also include the supplier's name, Unit price, and the Country of origin

Process Description
This includes the narrative description of the process, which also includes the process flow description. Detailed process flow chart indicating material, material, equipment and energy requirement of each step, and the normal duration/residence time of each process.

Process Description

This also includes the material and energy balance detailed calculation per equipment

Criteria for plant location

Plant selection to include the following -transportation facilities available -accessibility to the target market -water source quality and quantity -special business incentives - climatic conditions -utilities costs and availability -treatment facility -construction cost -operating labour -taxes -living conditions and expansion possibilities

Plant location
Location maps provincial, municipal and barangay map showing the plant location Plant site selection and justification Refer to the criteria given to justify your plant location

Plant layout

Illustration of the plant layout (isometric and top view, drawn to scale)

Plant size and Production schedule

This includes the rated daily capacity per shift, operating days per year, indicating the factors used in determining capacity. Expected production volume for the next 10 years considering start up and other factors. Refer to next slide for the format. Be sure to explain and justify your production plan.

Annual production plan (10 years of operation)

year Plant capacity Sales forecast Total production plan % utilization

Equipment Layout and Specifications

This includes Equipment and Piping layout-top view, and isometric Instrumentation and process control layout List of Equipments, Instrumentation and Process control, Pumps. Refer to the next slide for the format

List of Required Equipment and Process Controls

code
description

function

# units required

Rated capacity

Economic life

supplier

Quoted price

Equipment Layout and Specifications cont.

Equipment layout includes the following -Detailed calculation of equipment design -detailed calculation of pump and pipe sizing Refer to the next slide for Equipment Specification

Equipment Specification
Code Description Function # Units Required Operating Pressure Operating Temperature Rated capacity Dimensions Material of Construction Design details Heating/cooling requirements Insulation Requirement Instrumentation/process control requirement Piping and pump requirement Economic Life Drawing (per scale) __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________ __________