PAPER MILL

FACTO

RY

GOAL AND OBJECTIV

E

GOAL1. Market potential in Malaysia and potential export markets2. Raw material available for paper industry in Malaysia3. Competitiveness of the industry4. Utilisation of global and proprietary technologies5. Management practices

OBJECTIVEThere are several objective of our company. Some of them include that our company to be one of the long-term market forecast for Malaysia. Our next objective is that to be able to penetrate foreign markets and to increase the quality of production of our products. Our next objective is the availability of fibre raw material and possibilities to increase the availability in the long term and the final objective of our company is to improve management practices.

BUSINEES STRATE

GIES

MANUFACTURING STRATEGIES

COMPETITIVE CAPABILITIES

INVESTMENTS MADE IN STRATEGIC DECISION AREA

• COST• QUALITY• DELIVERY PERFORMANCE

• FLEXIBILITY

• PROCESS TECHNOLOGY

• CAPACITY, FACILITIES, AND VERTICAL INTEGRATION

• QUALITY SYSTEM • PRODUCTION & INVENTORY CONTROL

SYSTEMS• WORKFORCE

MANAGEMENT• MANUFACTURING

ORGANIZATION

TECHNOLOGY O

F PAPER

The method of making paper is essentially a simple one—mix up vegetable fibers, and cooks them in hot water until the fibers are soft but not dissolved. The hot water also contains a base chemical such as lye, which softens the fibers as they are cooking. Then, pass a screen-like material through the mixture, let the water drip off and/or evaporate, and then squeeze or blot out additional water. A layer of paper is left behind. Essential to the process are the fibers, which are never totally destroyed, and, when mixed and softened, form an interlaced pattern within the paper itself. Modern papermaking methods, although significantly more complicated than the older ways, are developmental improvements rather than entirely new methods of making paper.

 

ECONOMIC ADVANTAGEThe advantage of being involve in the paper business include that the raw material of paper are cheap material which are easily available. It is also can be cut easily into desired shaped and paper is not harmful as a waste product.

 The disadvantage is that paper is very flammable, it is easily damaged by water and insects. It also not strong enough to be use in heavy duty work

ORGANIZATIONAL

STRUCTU

RE

FARITH HAZIQ BIN MUHAMMADDirector

MUHAMMAD HABIBULLAH BIN BADULHISHAMHead Of Finance

MUHAMMAD AIMAN BIN ISHAKGeneral Manager

MUHAMMAD ALIEF BIN OTHMANHead Of Engineer

PLANT D

ESIGN

PROCEDURES

PRODUCT DESIGN

MANUFACTURING PROCESS DESIGN  1) Making pulp

Several processes are commonly used to convert logs to wood pulp. In the mechanical process, logs are first tumbled in drums to remove the bark. The logs are then sent to grinders, which break the wood down into pulp by pressing it between huge revolving slabs. The pulp is filtered to remove foreign objects. In the chemical process, wood chips from de-barked logs are cooked in a chemical solution. This is done in huge vats called digesters. The chips are fed into the digester, and then boiled at high pressure in a solution of sodium hydroxide and sodium sulfide. The chips dissolve into pulp in the solution. Next the pulp is sent through filters. Bleach may be added at this stage, or colorings. The pulp is sent to the paper plant.

CONTINUE

2) BeatingThe pulp is next put through a pounding and squeezing process called, appropriately enough, beating. Inside a large tub, the pulp is subjected to the effect of machine beaters. At this point, various filler materials can be added such as chalks, clays, or chemicals such as titanium oxide. These additives will influence the opacity and other qualities of the final product. Sizings are also added at this point. Sizing affects the way the paper will react with various inks. Without any sizing at all, a paper will be too absorbent for most uses except as a desk blotter. A sizing such as starch makes the paper resistant to water-based ink (inks actually sit on top of a sheet of paper, rather than sinking in). A variety of sizing’s, generally rosins and gums, is available depending on the eventual use of the paper. Paper that will receive a printed design, such as gift wrapping, requires a particular formula of sizing that will make the paper accept the printing properly.

CONTINUE

3) Pulp to paperIn order to finally turn the pulp into paper, the pulp is fed or pumped into giant, automated machines. One common type is called the Fourdrinier machine, which was invented in England in 1807. Pulp is fed into the Fourdrinier machine on a moving belt of fine mesh screening. The pulp is squeezed through a series of rollers, while suction devices below the belt drain off water. If the paper is to receive a water-mark, a device called a dandy moves across the sheet of pulp and presses a design into it. The paper then moves onto the press section of the machine, where it is pressed between rollers of wool felt. The paper then passes over a series of steam-heated cylinders to remove the remaining water. A large machine may have from 40 to 70 drying cylinders.

CONTINUE

4) FinishingFinally, the dried paper is wound onto large reels, where it will be further processed depending on its ultimate use. Paper is smoothed and compacted further by passing through metal rollers called calendars. A particular finish, whether soft and dull or hard and shiny, can be imparted by the calendars.The paper may be further finished by passing through a vat of sizing material. It may also receive a coating, which is either brushed on or rolled on. Coating adds chemicals or pigments to the paper's surface, supplementing the sizings and fillers from earlier in the process. Fine clay is often used as a coating. The paper may next be supercalendered, that is, run through extremely smooth calendar rollers, for a final time. Then the paper is cut to the desired size.

EQUIPMENT MAKING PAPERF O U R D R I N I E R M A C H I N E

MANUFACTURING PROCESSa) Flow Diagram

CONTINUE

b) Process Diagram

STEP PROCESS

MATERIAL H

ANDLING

SYSTEM

TYPES OF MATERIAL HANDLING SYSTEM NEEDED

NUMBER OF MATERIAL HANDLING MACHINE NEEDED1.Conveyors – 20units

2. Cranes – 30units

3. Industrial Trucks – 20 units

4. AGV – 20units

5. Robots – 30 units

5. AS/RS – 15units

FACTORY

PLANT L

AYOUT

259.125 m

162.5m

5462.5mm

5600

.4m

m

2100mm

604 1

.8m

m

5691

.7m

m

RECOVERY PLANT

2800mm

1300

mm

2500

mm

PAPER STORAGE

6000mm

600mm

PACKING AREA

1400mm

DRYERWET END & PRESS SECTION

CALENDER SECTION

3500mm X 3200mm

ADMINSTRATION LA

YOUT

52.5m

40m

MANUFACTURING LE

AD

TIME

MANUFACTURING LEAD TIMEMLT = (setup time + batch size(operation time) + non-

operational time) n

= ( 1hr + 2739726.027(8×10-6) + 1hr)(1) = 23.91 hours

NUMBER OF WORKERQf= pq(5x200000) =1000000ton/year Total no of part producedMpf=pqmp=(5)(200000)(1)1000000tonnes/years Mof=(pqmq)mo=(1×109)(4)4×109 operation/year No of worker needed=Mof(0.5/60)(33.33×106)/8760= 3805.173806 worker

TOTAL P

LANT COST

CAPITAL & MATERIAL COST a) Capital cost: -Machine Paper = RM 160,360.00

/machine-Power Plant = RM 128,284.00 /machine-Boiler = RM160, 360.00 /machine-Clarifier = RM120, 432.00 /machineTotal: RM 569 436.00

b) Material Cost: -RM 2,000,000 /yrc) Direct Maintaining cost/month -RM 100,000

PRODUCTION LABOUR COSTDirect labour cost : (Number of paper produce

per day) ( No. of working hour required per day) ( Price of Labour per hour)

: (1000000/250)(24)(10) = RM 960 000

Direct labour rate ,DLC : RM 10/hrFactory overhead cost , FOHC : RM 250 000Applicable factory overhead rate ,FOHCm : RM 250 000/960

000 = 0.2604Corporate overhead cost ,COHC : RM 150 000Applicable factory overhead rate ,COHCm : RM 150 000/ 960

000= 0.15625Capital investment in machine : RM 100 000Service life of machine : 6 yearsRate of return : 20%Salvage value : 0

CONTINUE

Calculation of machine labour:Recovery rate: = Capital cost x [ 0.2(1+0.2) 6] [((1+0.2)6) -1]= 569 436.00 x 0.26060= RM 148395.0216Labour machine rate = 148395.0216/ ( 365 days x 24hr /day) =

16.94

PRODUCTION LABOUR COST PER HOUR: ( Direct labour rate/ hr)(3806workers) (1+FOHCm) +(Direct machine rate/hr)

(7 machine)(1+COHCm) : (10)(3806) [1+0.2604] + (16.94)(7) (1+0.15625]: RM 38,198.36 /hr

TOTAL MATERIAL COST PER HOUR : {(Total material cost per year)/ (Total weight per year)} x (no. of weight per hour ) : {(RM 2000000/ 1000000)} × 114155.25: RM 228,310.5 / hr

TOTAL PRODUCTION COST: RM 38198.36 /hr + RM 228,310.5 / hr

 : RM 266,508.86/ hr

PROFIT

MARGIN

COST SELLINGUNIT PRODUCTION COST = (total production cost / hr)/

(total unit kg/ hour) = (266,508.86) /

(114.155.25) = RM 2.33 PROFIT PER KG = RM 1.66 UNIT SELLING PRICE = RM 3.99 PROFIT MARGIN PER KG = [(1.66)/(3.99)] X100% = 41.6%

CONCLUSION

The pulp and paper industry is a very large industry nowadays. Although the industry is criticized by environmental groups like Natural Resources Defense Council for unsustainable deforestation and clearcuting of old-growth forest, it is still one of the most important industry because paper is used and needed in our everyday life. So in order to overcome the problem of lacking of sources , we need to come out with new solutions such as using more recycled material and many more .