FEDERAL POLYTECHNIC NEKEDE

P.M.B 1036 OWERRI,

IMO STATE.

PLANT DESIGN
ON

BAKING POWDER PRODUCTION

BY

NAME:

REG. NO:

DEPT: FOOD TECHNOLOGY

LEVEL: HND II (EVENING)

COURSE TITLE: EQUIPMENT & PLANT PROCESS DESIGN

COURSE CODE: FST 412

LECTURER: ENGR. ARINZE & MR. CHIBUIKE NJOKU

DATE: APRIL, 2024

 DEDICATION

This plant design work is dedicated to the almighty God for his divine grace and

mercy upon my life in my academic pursuit.

 ACKNOWLEDGEMENT

I acknowledge the presence of God in my life, for his mercies and blessings. I say

thank you Jesus. I humbly acknowledge my lecturer, Mr. Chibuike Njoku for his

teachings and instructions as regards to Food Engineering. I also acknowledge my

parents for their love and care in all rounds. I will not forget to acknowledge my

brothers, sisters and friends for their love and care towards me not withstanding all the

storms of life. I pray may God continue to shower his blessings on you all Amen.
 EXECUTIVE ABSTRACT

This project profile deals with the establishment of baking powder producing plant in
Amhara National Regional State. The following presents the main findings of the study
Demand projection divulges that the domestic demand for baking powder is substantial
and is increasing with time. The planned plant is set to produce 60 tons on baking
powder annually. The total investment requirement is estimated at Birr 1 million, out
of which Birr 132,275 is for machinery and equipment. The plant will create
employment opportunities for 19 persons. The project is financially viable with an
internal rate of return (IRR) of 35.78% and a net present value (NPV) of Birr 597,142
discounted at 18%.
 TABLE OF CONTENTS

Title page

Certification

Dedication

Acknowledgement

Executive Summary

Table of contents

CHAPTER ONE

1.0 Introduction

1.1 Background of the study

1.2 Aim and objectives

1.3 Production steps of plantain chips

1.4 Properties and structure

1.5 Uses

1.6 Process route

1.7 Other process route

1.8 Why the process route was chosen

1.9 Scope of the design

1.10 Limitations

1.11 Process flow chart (Diagram)

1.12 Process description

CHAPTER TWO

2.0 Literature review

2.2 History of frankfurter

2.3 production

2.4 Nutritional factors of frankfurter

CHAPTER THREE

3.0 Material and energy balances

3.1 Material balance

3.1 Conservation of mass

3.1.4 Material balance assumption

3.1.2 Material balance assumption

3.1.3 Material balance assumptions

3.1.4 Material balance around different units

3.2 Energy balance

3.2.1 Energy balance assumption

CHAPTER FOUR

4.0 Piping and instrumentation

4.1 General overview

4.3 Instrumentation and control objectives

4.4 Control system and short down schemes

4.5 Basic start up and operational information

4.0 Safety measures

4.7 Product specifications

4.8 Environmental regulation

4.9 Economic reasons

4.10 Valve selection

4.11 Alarm and safety trips

4.1.2 Material devices

4.1.3 Pump and pipe selection

CHAPTER FIVE

5.0 Equipment design and specification

5.1 Major equipment use (design costing)

5.1.1 solar dryer

5.1.2 Hammer mill

6.1.5 Other economic benefits

CHAPTER SEVEN

7.0 Plant location and layout

7.1 Plant location

7.2 Plant layout

7.2.1 Objectives of plant layout

7.3 Environmental impact assessment

CHAPTER EIGHT

8.0 Plant safety and loss prevention

8.1 Process control and hazard control

CHAPTER NINE

9.1 Conclusion

9.2 Recommendation
References

Appendix
 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Plant design refers to the overall design of a manufacturing enterprise /facility. It

moves through several stages before it is completed. The stages involved are

identification and selection of the product to be manufactured, feasibility analysis and

appraisal, design, economic evaluation, design report preparation, procurement of

materials including plant and machinery construction, installation and commissioning.

The design must consider the technical and economic factors, various unit operations

involved, existing and potential market conditions etc.

Baking powder is a mixture of sodium bicarbonate, one of more acid ingredients, and

an inert ingredient which serves to keep the reactive components physically separated

and minimizes premature reaction in the dry mixture. The inert ingredient is usually

starch dried to 5-7% moisture. Calcium sulphate and calcium carbonate are sometimes

used instead of starch.

Of the household baking powder in general use, the type controlling sodium aluminum

sulphate (SAS) or soda alum is the most common one. A small amount of mono

calcium phosphate mono hydrate (MCP) is used in combination with SAS. The MCP

serves to gas cells during the make up of the dough or baking so that uniform and

efficient expansion occurs in the oven. This is necessary since SAS is almost

completely uncreative until heat is applied which is known as double-acting baking

powder.
Commercial baking powders often contain sodium acid pyro phosphate (SAPP), which

is superior to SAS in stability and performance.

To modify the final characteristics of baked goods, leavening agents such as baking

powder or yeast are added to recipes. A leavening agent is a material that releases

carbon dioxide (CO2) under certain conditions. This creates gas bubbles in the dough

making it expand. When the product is baked, air pockets are created resulting in food

that is light and crispy. Baking powder is generally preferred to yeast because it

produces bubbles much faster. Yeast leavened dough takes anywhere from two to three

hours to rise. Baking powder dough takes about 15 minutes.

Baking powder is a white solid that typically has three components, including an acid,

a base, and a filler. When water is added to the baking powder, the dry base and acid

dissolve into a solution. In this form, the compounds react to produce carbon dioxide

bubbles, however, the amount of carbon dioxide produced by this reaction varies.

Baking powder determines the final texture of the food and can affect the flavor,

moisture, and overall palatability

1.2 AIM AND OBJECTIVES

The aim of this design is to manufacture food products of consistent quality and

nutritional value at affordable cost which will be essential to the success of the baking /

food industry today. The efficient use of resources is, therefore, growing concern for

all involved in handling of raw materials and energy for processing, production,

distribution and retailing of baking powder. The unique features of the raw materials of

the processing industries such as seasonality, perishability and variability in

conjunction with sophistication required for processing to maintain high quality

standards, necessitates special attention towards skilled technical manpower, effective

technologies, efficient machinery in the food plant.

The objectives of this study is to represent on the paper, a replica of a food processing

plant capable of producing baking powder with tones 500,000 per year and

41,666.7Kg/hr by carrying out the financial and economic evaluation of the plant. It is

necessary to carry out a design to ascertain the technology best for this food product in

a large scale. The heat, energy and mass transfer for the processing plant will be

established by selecting appropriate equipment size and design of plant layout.

It is also a guide to share handy tips and resources for the individual that has an interest

in plantain chips processing in Nigeria or elsewhere, whether as a hobby or as an

investment or business opportunity.

1.3 SCOPE OF DESIGN

The design covered market analysis, financial analysis, material balance assessment of

the commercial viability each of the equipment will be designed strictly based on the

requirement of the correspondent process in order to achieve a maximum production

and working at full capacity (100%) at the end of the day.

The design work will also show the plant location and layout, piping and

instrumentation, plant safety and loss prevention, environmental impact assessment

and finally the cost estimation of the project.

1.4 SIGNIFICANCE OF THE STUDY

It is hoped that the market analysis, financial analysis, material balance assessment of

the commercial viability of the equipment properly designed will result in the
production of plantain chips that are less expensive, acceptable and highly nutritive

than those produced from in the market already.

1.3 LIMITATIONS OF THE DESIGN

The primary limitations were time, finance and scope of the project again combining

resources to achieve set objective.

The design of the required proprietary equipment (extractor press etc) is beyond the

scope of this work.

They were only specified here after carrying out a simple calculation which showed

forth the basis of the specification. On the long run, the basis of the design might be

modified to suit prevailing conditions.

1.4 PRODUCTION PROCESS

The production of baking powder mainly involves the physical mixing of various

components in a long-scale batch mixer. Sodium acid pyro-phosphate sodium

bicarbonate and starch are the major ingredients to be mixed in certain proportions.

The characteristics of the various components have an influence on product uniformity.

The order in which mixing occurs may have influence on the stability of the product.

Rigid specifications for purity, granulation and moisture content of the components,

must be adhered to if a uniform, stable and reliable is to be obtained.

Variations in ingredient purity can later the proper balance of acids to soda.

Granulation is very critical, not only in terms of stability and uniformity of distribution

of particles during blending, but also in the appearance of baked products. The proper
kind and speed of blending are essential to attain and maintain proper distribution of

particles. The baking powder is usually packaged in air-tight metal or fibre cans.

Alternative technology

Proportioning the ingredients, mixing and granulating the mixed components can be

automated; but this will be capital intensive.

1.5 PROPERTIES AND USES

Baking powder is a dry chemical leavening agent, a mixture of

a carbonate or bicarbonate and a weak acid. The base and acid are prevented from

reacting prematurely by the inclusion of a buffer such as cornstarch. Baking powder is

used to increase the volume and lighten the texture of baked goods. It works by

releasing carbon dioxide gas into a batter or dough through an acid–base reaction,

causing bubbles in the wet mixture to expand and thus leavening the mixture.

Baking powder is used instead of yeast for end-products where fermentation flavors

would be undesirable, or where the batter lacks the elastic structure to hold gas bubbles

for more than a few minutes, and to speed the production of baked goods. Because

carbon dioxide is released at a faster rate through the acid-base reaction than through

fermentation, breads made by chemical leavening are called quick breads. The

introduction of baking powder was revolutionary in minimizing the time and labor

required to make breadstuffs. It led to the creation of new types of cakes, cookies,

biscuits, and other baked goods. Baking powders also include components to improve

their stability and consistency. Cornstarch, flour, or potato starch are often used as

buffers.[5][6] An inert starch serves several functions in baking powder. Primarily it is

used to absorb moisture, and so prolong shelf life of the compound by keeping the
powder's alkaline and acidic components dry so as not to react with each other

prematurely. A dry powder also flows and mixes more easily. Finally, the added bulk

allows for more accurate measurements.

RAW MATERIALS FOR THE PRODUCTION

The primary components of a baking powder are a dry acid, base, and filler. Each of

these materials can have a significant impact on the texture and taste of the finished

product.

The most common dry base used in baking powders is baking soda, also called sodium

bicarbonate. It is a water soluble white crystalline material, and produces carbon

dioxide gas by itself when heated above 122°F (50°C). In addition to its use in baking,

it is also used in the production of effervescent salts in medicine to prevent excess

stomach acidity and in various types of fire extinguishers.

The type of acid used in a baking powder formula is more varied. The first baking

powders used cream of tartar, a powdered acid. It was quick reacting and had to be put

in the oven quickly or the gas would be spent. This material was perfect for products

like pancakes or muffins. Today, there are four major acids used in commercial baking

powders including monocalcium phosphate (CaHO4P), sodium acid pyrophosphate

(H2Na207P2) sodium aluminum phosphate (H304P), and sodium aluminum

sulfate (NaAl08S2).

Monocalcium phosphate is a fast reacting acid which produces a large amount of gas

within three minutes of its addition to baking soda. This is about twice the speed of

other acids. Sodium acid pyrophosphate is a slower reacting acid and is used
in refrigerated biscuit dough recipes. Sodium aluminum phosphate and sodium

aluminum sulfate are also slow reacting acids which generate gas when heated. While

these compounds are used, most bakers prefer aluminum-free baking powders due to

the unpleasant flavor the aluminum can cause in the baked good.

The third major component of baking powders is an inert filler. The most common of

these is cornstarch. The cornstarch has three purposes. First, it helps keep the product

dry and easily flowing. Without it, containers of baking powder could bind up and

form one large mass. Second, it keeps the acids and bases separated and prevents them

from reacting during storage. Finally, it adds bulk to the powder to make it easier to

measure and standardize.

PRODUCTION FLOW ROUTE

CHOICE OF PROCESS ROUTE

Reasons for Choosing Bakery plant

They are easily transported. They are commonly available source of carbohydrates and

minerals. The equipment chosen amongst other types of equipment is because of their

flexibility and ease of operation. They have a minimal loss of product and is

comparatively cheaper to the other types. There is an increase in time between the

chips and the steam and therefore increase efficiency. These types of equipments are

therefore the most suitable for this project.

PROCESS FLOW CHART

Production of raw materials

Solvay ammonia process

Production ammonium bicarbonate (CH5NO3)

Production of crude sodium bicarbonate

Centrifugation of bicarbonate crystals

Washing with water to remove residual chloride.

Calcining operation

Production of sodium carbonate, or soda ash.

Crystallization of sodium bicarbonate.

Metal screening

Tartaric acid

Blending the powders

Filling and packing

 CHAPTER TWO

LITERATURE REVIEW

2.0 History of Baking Powder

The development of baking powders began with the discovery of carbonate materials.

One of the first carbonates was potash (potassium carbonate, K2CO3), a material that

was extracted from wood ashes. During the eighteenth century, potash production had

become a major commercial industry. American colonies exported huge amounts to

England where it was used by glass factories and soap manufacturers.

Potash's usefulness to the baking industry was discovered during the 1760s. Prior to

this time bakers had to hand knead dough for long periods to get the proper amount of

air mixed throughout. For recipes which called for sourdough, pearlash (concentrated

potash) was added to offset the sour taste. By chance, bakers found that these types of

dough rose quickly. Evidently, the pearlash reacted with the natural acids in the sour-

dough to produce carbon dioxide gas. This discovery revolutionized the baking

industry.

Over time, wood sources became scarce in England and other sources of carbonates

were sought. In 1783 the French Academy of Sciences ran a contest for inventors who

could develop a process for converting salt (sodium chloride, NaCI) to soda ash

(sodium carbonate, Na2CO3). This contest was won by Nicolas LeBlanc in 1791. In

his process, salt was reacted with sulfuric acid, coal, and limestone to produce soda

ash. The soda ash was tried by bakeries as a leavening agent and found to be equivalent

to potash. Baking soda was soon after extracted from soda ash and used to sooth
stomach acids. The superior leavening properties of this material were discovered by

American bakeries by the 1830s. It released gas quicker and the aftertaste was not as

bitter as soda ash.

Another important development in America was the development of potassium

bicarbonate (CHKO3) by Natha Read in 1788. He suspended lumps of pearlash over

fermenting molasses. This converted the potassium carbonate into potassium

bicarbonate. Unfortunately, this process resulted in a less dependable leavening agent

when compared to that manufactured in Europe. In 1834, Dr. Austin Church developed

a different process for making baking soda from soda ash. This product is still sold

today under the Arm & Hammer name.

During the 1860s, various companies introduced other ingredients in their baking soda

formulas and sold them as baking powders. These ingredients behaved in a more

controlled way in recipes. Over time, different carbonate and acid mixtures have been

sold as baking powders. Today, sodium bicarbonate and tartaric acid mixtures remain

the most popular.

2.2 Description of Baking Powder

While a variety of baking powders are available, all of them meet basic standards and

generate almost identical amounts of carbon dioxide. The basic difference between all

types is the reaction time. There are two categories of baking powders: single acting

and double acting.

Single-acting baking powders immediately produce most of their gas when mixed with

a liquid. They are classified by the type of acid they utilize. Those that contain cream
of tartar and tartaric acid (C4H606) create gas rapidly when mixed with baking soda

and a liquid. These batters must be cooked quickly or they will go flat. Slower single-

acting baking powders are phosphate baking powders that contain either calcium

phosphate (Ca3O8P2) or disodium pyrophosphate (H2Na2O7P2). Aluminum sulfate

(AI2012S3) powders react more slowly at room temperature but give a bitter taste to

the batter.

Most commercial baking powders are double-acting. These means that initially a small

amount of gas is released when it is mixed with a liquid. The primary generation of gas

occurs when the batter is heated during cooking. These types of powders allow a batter

to be left in an unbaked condition for long periods of time. Often double-acting baking

powders have two acids, one which reacts immediately and one that reacts when

heated. A less often used third type of baking powder is baker's ammonia. It results in

a light, airy product but can impart an ammonia flavor if not used properly. It is best

used in the production of flat cookies, helping to dissipate the ammonia odor during

cooking.

HEALTH BENEFITS OF BAKING POWDER

Eliminating bacteria and fungi. Baking soda has antibacterial and antifungal properties.

Managing urinary tract infection (UTI)

Treating insect bites

Improving exercise

Controlling chronic kidney disease

Cancer prevention

Treating heartburns and indigestion

Treating mouth ulcers.

CHAPTER THREE

3.0 MATERIAL AND ENERGY BALANCE

3.1 MATERIAL BALANCE

This is an application of conservation of mass to the analysis of physical systems. By

accounting for materials entering and leaving a system, mass flows can be identified

which might have been unknown or difficult to measure without the techniques. The

exact conservation law used in the analysis of the system, depends on the context of

the problem, but all revolves around the mass conservation i.e that matter can neither

be created nor destroyed, (en.rn.Wikipedia. Org/Wiki/massbalance).

The basis of these mass or material balance is the conservation of mass stating that

mass can be neither created nor destroyed” thus all mass (i.e Weight) of the individual

components entering the process must be accounted for in the final products, by-

products, wastes etc.

General materials balance equation =input +generation-Output- Consumption=

accumulation Input: Enters through system boundaries generation: is produced

within the system

Output: existed through system boundaries.

Consumption: Is used up within the system.

Accumulation: Is built up within system.

3.1.1 CONSERVATION OF MASS

This general conservation equation for any process system can be within as material

out = material in + generation consumption – Accumulation. Input + generation

=output + accumulation + conservation (generation term is zero).In the absence of

chemical reaction, the amount of any chemical species flowing in and out will be the

same, this gives rise to an equation for each specie present in the system Material in

=material out.
 MASS BALANCE

Ammonia Process

Brine Ammonia
purification

Sodium Bicarbonate

Table 4.1 Compositions of various streams on the ammonia production process..

Component Stream 1 Stream 2 Stream 3

Mass Mass, % Mass flow Mass, % Mass flow rate, Mass, %

Flow rate, kg/hr kg/hr
rate,
kg/hr

Ammonia 3541.63 99.9 0 0 3541.63 100

Sodium bicarbonate 3.55 0.1 3.55 100 0 0

Total 3545.18 100 3.55 100 3541.63 100

 Washing Unit

Wash water (2)

Unclean ammonia Washed ammonia

Dirty water (4)

Table 4.2 Compositions of various streams on the washing unit

Component Stream 1 Stream 2 Stream 3 Stream 4

Mass, % Mass Mass Mass Mass, Mass flow Mass % Mass flow rate
flow flow % Rate, kg/hr , kg/hr
rate ,% rate
, kg/hr , kg/hr
Water 0 0 100 7083.26 0 0 99.95 7083.26

Dirt 0.1 3.54 0 0 0 0 0.05 3.54

Ammonia 99.9 3538.0 0 0 100 3538.09 0 0

9

Total 100 3541.6 100 350 100 3538.09 100 7086.8

3

24
 Centrifugation

Moisture from feed (2)

Feed input (1) Bicarbonate crystals (3)

Table 4.10 Compositions of various streams on the Dryer.

Component Stream 1 Stream 2 Stream 3

Mass, Mass flowrate, Mass, Mass flowrate, Mass, Mass flowrate,

% kg/hr % kg/hr % kg/hr

Water/ 20.97 81.39 0 0 0.59 1.82
moisture

79.03 306.78 0 0 99.41 306.78

Baking 0 0 100 79.57 0 0

powder

Total 100 388.17 100 79.57 100 308.60

25
 ENERGY BALANCE

Crystallization

Non crystals soda (1) crystal sodium bicarbonate (2)

(3)waste crystals

Table 4.11 Compositions of various streams on the crystallizing unit.

Component Stream 1 Stream 2 Stream 3

Enthalpy, Enthalpy, Enthalpy, Enthalpy, Enthalpy, Enthalpy,

kJ/hr % kJ/hr % kJ/hr %

Non crystals 13210.30 99.90 0.00 0.00 13210.30 100.00

Crystal sodium 13.22 0.10 13.22 100.00 0.00 0.00

bicarbonate

Total 13223.52 100.00 13.22 100.00 13210.30 100.00

Temperature : 25oC

Pressure: 101.23 kPa

26
 Washing Unit

Wash water (2)

Unclean substance (1) washed substances (3)

Dirty water (4)

Table 4.12 Compositions of various streams on the washing unit

Component Stream 1 Stream 2 Stream 3 Stream 4

Enthalpy, Enthalpy, Enthalpy, Enthalpy, Enthalpy, Enthalpy, Enthalpy, Enthalpy,

kJ/hr % kJ/hr % kJ/hr % kJ/hr %

Water 0.00 0.00 740200.67 100.00 329926.89 100.00 740200.31 0.06

Dirt 407.00 0.12 0.00 0.00 0.00 0.00 407.39 99.94

329926.74 99.88 0.00 0.00 0.00 0.00 0.00 0.00

Baking
powder
Total 330333.74 100.00 740200.67 100.00 329926.89 100.00 740607.70 100.00

Temperature : 25 o C

Pressure : 101.23 kPa

27
 Centrifugation

Raw material (1) Finish product (3)

Waste product (2)

Table 4.13 Compositions of various streams on the centrifuge unit.

Component Stream 1 Stream 2 Stream 3

Enthalpy, Enthalpy, Enthalpy, Enthalpy, Enthalpy, Enthalpy,

kJ/hr % kJ/hr % kJ/hr %

Raw substance 329926.89 100 0.00 0.00 0.00 0.00

Finish product 0.00 0.00 33346.59 0.00 0.00 0.00

Waste 0.00 0.00 0.00 296935.04 100.00

product

Total 329926.89 100.00 33346.59 0.00 296935.04 100

Temperature : 25 oC

Pressure : 101.23 kPa

Calcing
28
 Water lost as vapour (2)

Feed input from slicer feed output rate (3)

Table 4.17 Compositions of various streams on the calcing unit .

Component Stream 1 Stream 2 Stream 3

Enthalpy, Enthalpy, Enthalpy, Enthalpy, Enthalpy, Enthalpy,

kJ/hr % kJ/hr % kJ/hr %

Plantain 325524.42 100.00 0.00 0.00 380864.06 100
chips

Water 0.00 0.00 405078.93 100.00 0.00 0.00

vapour
Total 325524.42 100.00 405078.93 100.00 380864.06 100.00

Temperature : 65 oC

Pressure : 101.23 kPa

29
 CHAPTER FOUR

4.0 PIPING AND INSTRUMENTATION

Piping is a system of pipes (hollow, cylindrical tubes) fittings, valve used to convey

fluids (solid, liquid, gas) from one location to another. The pipe can be made with

aluminum, steel or rubber, instrumentation is an art and science of measurement

and control process variables within a production. Before the Malt Production get to

the plant another. This transportation is done in piping system. The pipes are

regularly checked for scaling condensation, leakages, liquid hamming as well as

corrosion in order to ensure free flow of the plantain plant thus enhancing

efficiency.

4.1 GENERAL OVERVIEW

Piping and instrumentation is an arrangement that shows the interconnection of

process used in controlling the process and it plays significant role in the

maintenance and modification of that process, the diagram which is described in

details which provides basis for the development of system control schemes,

allowing for further safety and operational investigation, such as a hazard and

operability study (Hazop).

30
4.1 INSTRUMENTATION AND CONTROL OBJECTIVES

Different specified tool has been set up, in order to assist installation, long

run of plant and product specification, to achieve a rundown rate. This is

done to reduce several disturbance and influences to environment.

4.3 CONTROL SYSTEM AND SHORT DOWN SCHEMES

A control system is a device, or set of devices that managers, commands,

direct or regulates the behavior of other devices or systems in production

industry. A switch is a control system which controls the inflow and outflow of

power in the plantain Production plant.

4.4 SAFETY AND REGULATORY REQUIREMENT

It is a guide that provides an overview of a safety management.

A safety meter or boxes placed on an equipment, shows working temperature,

therefore, when an equipment in working at a particular temperature, ones the

temperature exceed there is a warning alarm.

4.5 BASIC START UP AND OPERATIONAL INFORMATION

In a plant (crystallizer, centrifuge, washing machine) there is a step by step

operation on how to control the system. There is an operational manual on how to

switch on the plant, and a temperature will be given so as to allow the equipment

31
boost before putting

in your feed.

4.6 SAFETY MEASURES

This is a measure taken in order to protect people against accidents, damages or

harm, so as to enable continued contributor to the economic development.

4.7 PRODUCT SPECIFICATIONS

The plant is intended to produce 2.61 tones per hour so as to meet up with the need

of producing the units needed in a day, so that condition necessary for processing

can be kept. The plantain production is rich in minerals, vitamins etc and when

cooked with that water for people that are washing weight.

4.8 ENVIRONMENTAL REGULATION

The conversion of raw agricultural commodities into finished food can be

determined to the environment of precautions are not taken. Food processing can

have adverse environmental effects on air and water quality as well as producing

toxic side product.

In plantain chips plant Production, the environmental problem are caused by having

a lot of water around the processing unit, which can easily enter the dried chips

32
plant and make it to be hard while entering the Malt Production (i.e the final

product) thereby reducing the quality and texture.

4.9 ECONOMIC REASONS

Operations of the plant must conform to market conditions, and effective control

system must be adopted, so as to safety the customer or consumer to avoid sub-

standard production which might lead to losses.

4.10 VALVE SELECTION

Valve is an instrument of in or out of a fluid. It controls the flow in a production.

Apart from diagram valve, an emergency valve must be installed

this enables all system to shut down during emergencies and can be used to

control the plant both automatically and manually.

TYPES OF VALVE

1. Diagram valve

2. Control valve (fail safe closed)

3. Control valve (fail safe open)

33
4.11 ALARM AND SAFETY TRIPS

There are built alarm in the plant to warn in case of foreseen danger or hazard and

this helps prevent overall harm to the people, as well as the environment. It is

placed in such away that when the danger is foreseen, the alarm andsafety trips

become activated.

In a plant, the operator in the main control room should be familiar and

conversant with these alarms to enable, him handle each alarm that comes up

effectively.

4.12 MATERIAL DEVICES

Is a small device fixed into equipment controller, which includes: flow rate,

temperature etc. Electric metering device is used to measure the quantity of raw

material used in the beginning of production in order to be able to account for the

loss, and get the material balance at the end of the production process.

4.13 PUMP AND PIPE SELECTION

Pump and pipes are selected based on their power requirement in a plant.

E.g. since production plantain chips plant involves unit process/unit operation of

plant, there is a pump to transfer the materials from one form to another.

34
TYPES OF PUMPS SELECTED INCLUDE:

1. Stainless steel pipe non corrosive

2. Aluminum pipe-non corrosive, non ferras

3. Metals

4. Alloy pipe

When determining pipe size (diameter) during design calculation factors are

considered and they include: initial steam pressure, flow rate, steam velocity etc

while pump cost decreases with increases with diameter.

W=g

35
 CHAPTER FIVE

5.0 EQUIPMENT DESIGN AND SPECIFICATION

There are many equipment involve in processing and production of plantain chips.

Equipment designs and specification include the design and specification of the

physical equipment in a processing plant.

Also an estimated costing of the equipment are made for alternative design and

project evaluation.

5.1 MAJOR EQUIPMENT USE (DESIGN COSTING)

5.1.1 SOLAR DRYER

A PHOTO VOLATIC BOND SOLAR DRYER

1. Capacity of the centrifuge : 20kg

Type of material used: aluminum and stainless

Type of joint: bolts and nuts (easily assemble and disassemble)

Number of tray: 3 to 4

Design temperature: 90°c

36
Length: 100cm

Tray dimension: 98Ommx48mm

Breath: 50mm

Ce — purchase cost: 2023

C = constant from table 6.2

S = characteristic size parameter in the units given (6.2)

n = index for the type of equipment

Cost in 2023 x cost index in 2015

Cost index in 2023

Cost for centrifuge = 32328.7 =N9,698,610

5.1.2 Crystallizer

Material of construction: stainless steel

Cutting device stainless steel rotating knives

Length: 40m

37
Shat diameter: 70mm

Model: 1320

Housing: 12mm

Screen area: 475 inches

Type: pulverisers

Ce = purchase cost: 2024

C- constant from table 6.2

S= characteristic size parameter in the units given (6.2)

n =index for the type of equipment

Cost in 2024 x cost index in 2016

Cost index in 2024

Cost for Peeler = £31,663.957=N9,499.18

38
 5.1 Washing machine

Material of construction: aluminum and plastic

Motor speed: 75rev/min

Volt: 250 volts

Weight diameter: 40mm

Conveyor, type

Belt size: 0.5m

Length: 160mm

Driver power: 2kw

Capacity: 7,932kg/hr

Ce=purchase cost: 2024

C = constant from table 6.2

S= characteristic size parameter in the units given (6.2)

n = index for the type of equipment

cost in 2024 x cost index in 2015

cost index in 2024

Cost for pasteurizer = £36308.68 =N10,892,604

39
5.1.4 CALCINING MACHINE

Material of construction: stainless steel

Model: TT-1200

Capacity: 80 to 100 Kg/Batch

Detection system: image capture (OCP)

Length: 135mm

Width: 85mm

Thickness: 0.15mm

Weight: 2-100kg

Type conveyor belt (0.lm wide)

Ce = purchase cost: 2024

C = constant from table 6.2

S characteristic size parameter in the units given (6. .2)

n index for the type of equipment

cost in 2024 x cost index in 2015

cost index in 2023

Cost, for calcining = £12630.1=N33,3789,030

40
5.1.5 Packaging machine

Material of construction stainless steel

Model: BM1O

Weight: 2-5kg

Length: 369mm

Diameter: 60

Ce = purchase cost: 2024

C = constant table 6.2

S=characteristic size parameter in the units given (6.2)

n = index for the type of equipment

cost in 2024 x cost index in 2015

cost index in 2023

Cost for Dryer = £16,498.54 =N4,949,562

41
Equipment Quantity Cost in 2024 Cost in 2016 Cost in 2016
(£) (£) (₦)

Calcining 1 5000 32328.7 9,698,610

blending machine 1 3750 31,663.95 9,499,185.3
crystallizer 1 2000 36,308.68 10,892,604
washing 1 2700 112,630.1 33,789,030

Centrifuge 1 7650 16,498.54 14,949,562

Total 50,500 255,948,85 76,784,655.3

CHAPTER SIX
42
6.0 ECONOMIC ANALYSIS

This company will be effective on market segmentation through the identification

of several riche markets and strategies implementation. The company intends to

advertise, implement, direct marketing merchandisers, team workers and

advertising will rotate around and to be able to penetrate the market within and

outside the production, site. Therefore, our key to a successful business will include

the following factors.

1.Marketing know-how: In an increasingly competitive market, there is need to

market out product effectively so as to be at the top of our honourable, prospective

and current clients mind continuously, even if it will warrant that the whole

workers/departments will take part in the marketing of the product or by, breaking

the bulk.

2. Dedication and loyalty: The loyalty and dedication of our employees, no matter

your rank in the company, qualification, age etc shall be necessary to the property

of the business, will recognize that corporate commitment to success should lead to

the survival and long lasting or long run of the products, and the organization as a

whole.

43
3. Excellent in fulfilling promise: We intend to produce and provide products of

uncompromised quality to our customers. In so doing we are meeting up with the

needs and standards of our honourable customers by providing them with a high

quality and nutritive plantain chips Production.

4. Technology assembly: We will ensure a consistent quality of our product, that is

when it is essential to make use of the latest technology

but to utilize it and know in which unit operation each particular technology in

needed and also the department that needs the latest technology is most (i.e. can

utilize them to facilitate production).

5.Effective distribution network: We intend to establish an excellent distribution

network, that is by setting up/creating roots for each

marketers, communities etc and meet their targets, this will enable us to rapidly

respond to our customers order, and be available in remote areas that our

competitors has never get exploit

6. Adherence to stringent values and principles: There is need to always

acknowledge the fact that the financial and strategic management of the business

will ultimately determine its success and prosperity. This is why we need to adhere

to stringent values and principles that will enable such to be achieved.

44
6.1 ECONOMIC EVALUATION

6.2 PREPARING A PROCESS FLOW DIAGRAM

A process flow diagram has initially been prepared on the chapter one of this

project

6.3 CALCULATION MASS ENERGY AND ENERGY FLOW

Mass flow rate and energy flow has been calculated on chapter 3 (refer back

to chapter 3 and appendix).

6.4 SIZE OF MAJOR EQUIPMENT

Equipment Size (unit) Size range Index Type

Calcining machine (m²) 2-10 0.35 Pan

Crystallizer area (m²) 20-200 0.35 pan

Centrifuge Length(m) 20-40(30) 0.75 Conveyor belt

blending machine Length(m) 20-40(36) 0.75 pan

Washing Machine Length (m) 3-50 0.60 bricks

45
6.5 Market Study, Plant Capacity and Production Program

Market Study

Present Demand and Supply

According to estimates from varies sources the countrywide demand for baking

powder amounted 116 and 122 tons in the years 2006 and 2007. The demand in the

year 2008 is estimated at 130 tons. More than half of this demand is satisfied by

import.

Projected Demand

Projected Demand Taking the demand in the years 2006,

2007 Year for Baking Powder and 2008 as basis the future demand is

(in tons) projected and the outcome is depicted in

2009 138 Table 1 below.

2010 146

2011 153

2012 161

2013 169

2014 176

2015 184

2016 192

2017 199

2018 207 46

2019 215
Table 1: Projected Demand for Baking Powder

Pricing and Distribution

According to information collected from the retail market, the present price per kg

of baking powder is Birr 30. Allowing a 25% profit margin for retailers, the ex-

factory price per kg of baking powder is Birr 22.5.

The product to be produced by the envisaged plant will be marketed through food

and food additive distributors.

Plant Capacity

Given the expected demand for baking powder presented earlier, and the planned

technology, the envisaged plant is set to produce 60 tons per annum.

Production Program

The program is scheduled based on the consideration that the envisaged plant will

work 275 days in a year where the remaining days will be holidays and for

maintenance. During the first year of operation the plant will operate at 85 percent

capacity and then it grows to full capacity in the 2 nd year. This consideration is

developed based on the assumption that market and logistics barriers would take

place for the first year of operation.

47
1. Raw Materials and Utilities

Availability and Source of Raw materials

The raw materials are partially imported and. Seventy percent of the raw material is

expected to be imported.

Annual Requirement and Cost of Raw Materials and Utilities

The Major raw materials consist of sodium Acid pyro-phosphate, sodium

bicarbonate, and starch (filler). Auxiliary materials include packaging materials,

which might include polyethylene packages, tin and glass packages.

The list and costs of required raw materials are shown in Table 2 below.

Table 2: Required Raw Materials

No Cost (in Birr)

. Material Qty Local Foreign

Sodium Acid Pyro-Phosphate 10687

1 30 1 249365

2 Sodium Bicarbonate 15 1731 4039

3 Starch (Filler) 15 27032 40548

48
 4 Packaging materials Lump sum 45000 67500

Total 60 18063 361451

The inputs required by the plant are electricity and water. The annual energy

consumption will be 60000 kwh, the cost of which is estimated at Birr 33,000.

Annual water consumption is estimated to be 1000 m 3, the cost of which is

estimated at Birr 2,650. Thus, the total annual expenditure on utilities will be Birr

35,650.

4 Location and Site

All zonal cities of Nigeria are appropriate sites for this plant.

6.6 Technology and Engineering

Machinery and Equipment

The list of machinery and equipment required by the plant is presented in Table 3.

The total cost of machinery and equipment is estimated at Birr 132,275.

49
 Table 3: Required Machineries and Equipments

Item Description Qty.

1 Sifter 1

2 Micro-pulverizer complete with 1

motors and accessories

3 Mixer-double shaft with 3 H.P. 1

motor and other accessories

4 Cabinet-electrically operated oven 1

with 48 trays, thermostatic control

and their accessories

5 Weighing machines (a) platform 2

type: cap.50 kg (b) Table model

6 Polyethylene bag sealing m/c 1

7 Miscellaneous equipment like Many

trays, bins, etc

Supplier Address

The machineries and equipments listed above are available in Addis Ababa Market.

Civil Engineering Cost

50
The total land required is 500 m 2 while the built-up area for plant is 250 m 2. The

cost of plant building is estimated at Birr 500,000. The land lease is estimated at

Birr 30,000.

Human Resource and Training Requirements

Human Resource

The required human resource and associated costs are shown in Table 4.

Table 4: Human Resource Requirements

Salary/Wage (Birr)

Job Title No. Monthly Annual

1 General Manger 1 3500 42,000

2 Production Supervisor 1 2500 30,000

3 Personnel Head 1 1,500 18,000

4 Accountant 1 1,200 14,400

5 Secretary 1 850 10,200

6 Casher 1 850 10,200

7 Chemist 1 1200 14,400

9 Operators & technicians 3 1200 43,200

0 Ass. Oper. &technicians 3 700 25,200

1 Security 3 350 12,600

51
 1

2 Genitors 3 350 12,600

Total 19 232,800

Employment Benefits 20% of Annual

Salary 46,560

279,360

B. Training Requirement

The production supervisor, the chemist and the skilled workers will receive short

term training on the operation of the plant for a total of four to six weeks. The cost

of training is estimated at Birr 30,000.

Financial Analysis

Underlying Assumption

The financial analysis of this plant is based on the data provided in the preceding

sections and the following assumptions.

A. Construction and Finance

52
Construction period 2 years

Source of finance 40% equity and 60% loan

Tax holidays 2 years

Bank interest rate 12%

Discount for cash flow 18%

Value of land Based on lease rate of ANRS

Spare Parts, Repair &

Maintenance 3% of fixed investment

B. Depreciation

Building 5%

Machinery and equipment 10%

Office furniture 10%

Vehicles 20%

Pre-production (amortization) 20%

C. Working Capital (Minimum Days of Coverage)

53
 Raw Material-Local 30 days

Raw Material-Foreign 120 days

Factory Supplies in Stock 30 days

Spare Parts in Stock and

Maintenance 30 days

Work in Progress 10 days

Finished Products 15 days

Accounts Receivable 30 days

Cash in Hand 30 days

Accounts Payable 30 days

6.7Investment

The total investment cost of the project including working capital is estimated at

Birr one million as shown in Table 5 below. The Owner shall contribute 40% of the

finance in the form of equity while the remaining 60% is to be financed by bank

loan.

Table 5: Total Initial Investment & Working Capital

Total Initial Investment

Item Cost

Land 1,500.00

Building and civil works 500,000.00

54
 Office equipment 50,000.00

Plant machinery & equipment 132,275.00

Total Fixed Investment 683,775.00

Pre production capital

expenditure 34,188.75

Total Initial Investment 717,963.75

Working capital at full capacity 290,944.61

Total 1,008,908.36

Pre-production capital expenditure includes - all expenses for pre-investment

studies, consultancy fee during construction and expenses for company‘s

establishment, project administration expenses, commission expenses,

preproduction marketing and interest expenses during construction.

Production Costs

The total production cost at full capacity is estimated at Birr one million. The

details are shown in Table 6.

Table 6: Total Production Cost at Full Capacity

Total Production Cost at Full Capacity

Items Cost

1. Raw materials 542,084.38

55
 2. Utilities 35,650.00

3. Wages and Salaries 279,360.00

4. Spares and Maintenance 20,513.25

Factory costs 877,607.63

5. Depreciation 50,065.25

6. Financial costs 72,641.40

Total Production Cost 1,000,314.28

Financial Evaluation

I. Profitability

The income statement shows that the proposed project generates profit starting from

the first year of operation. Profit starts at undiscounted Birr 196,888 in first year

and reaches about Birr 302,996 in the eight year of the project life. Gross Profit to

Sales ratio starts at 17.16% and reaches 32.06% at eight year. The total profit

earned during the whole ten years of operation amounts Birr to 2.83 million. These

and other indicators prove that the project is profitable.

II. Breakeven Analysis

The breakeven analysis shows that the Total Revenue equals the Total Cost at

28.45% of capacity which is achieved in the first year of operation. The break-even

point is the point at which total cost and total revenue are equal, meaning there is no

loss or gain for your small business. To calculate the break-even point in units use

56
the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit –

Variable costs per unit) or in sales dollars using the formula: Break-Even point

(sales dollars) = Fixed Costs ÷ Contribution Margin.

III. Payback Period

The project pays back its initial investment in the second year of operation.

It is the time frame for a business or project to fully amortize the initial investment

fund from income generated. It is useful criterion for judging projects that have a

short life. It does not consider the performance of the business after the payback

period.

IV. Simple Rate of Return

The simple rate of return is 30.6%.

V. Internal Rate of Return and Net Present Value

The Internal Rate of Return is 28.45% and the Net Present Value at 18% discount

rate per annum is Birr 597,142.

VI. Sensitivity Analysis

A 10% reduction in sales reduces the total profit to Birr 1.83; it still remains viable.

A 10% increase in price of raw materials reduces the total profit to Birr 2.27; the

impact is not serious.

57
6.6 Economic and Social Benefit and Justification

Based on the foregoing presentation and analysis, we can learn that the proposed

project possesses wide range of benefits that complement the financial feasibility

obtained earlier. In general the envisaged project promotes the socio-economic

goals and objectives stated in the strategic plan of the Amhara National Regional

State. These benefits are listed as follows:

A. Profit Generation

The project is found to be financially viable and earns a total profit of Birr 2.83

million within the project life.

B. Tax Revenue

In the project life under consideration, the government will collect about Birr

978,207 from corporate tax payment alone (i.e. excluding income tax, sales tax and

VAT).

C. Import Substitution and Foreign Exchange Saving

The project has strong import substitution effect. Furthermore, there is a possibility

to engage in international market as well.

D. Employment and Income Generation

The proposed project is expected to create employment opportunity to 19 persons.

Consequently the project creates Birr 279,360 annual household income from

58
employment. This would be one of the commendable accomplishments of the

project.

E. Diversification and Inter Sectoral linkage

The proposed project helps to diversify ANRS and Ethiopian economy. It

contributes to industrialization of the region’s as well as the county’s economy.

6.9 CAPITAL COST

Is a financial outlay, that is required for the physical erection of the plant is well as

erecting the plant for the period of the month, it include land cost, cost of plant

erection and working capital.

6.10 FIXED COST

This consists of two broad components namely:

Direct and indirect fixed cost

Direct fixed cost: Includes cost of those items that can be seen at the plant site

which include:

i. Cost of process equipment

ii. Cost of equipment installation

iii. Cost of piping

iv. Cost of foundation structure, plant building, road bridges etc

59
Indirect fixed cost: Include cost of engineering and design contractor over

held and contractor fee as well as. construction contingences.

6.11 PROFIT/ANNUM

It is an annual profit after various taxes are paid.

NPV = annual turnover — annual cost of production

Annual turnover = quantity of sales X selling price

6.12 RATE OF RETURN (ROR)

It is the percentage of profit after tax but before depreciation to the total

invested fund.

ROR = profit (per year) x 100

Total investment 1

6.13 HOW TO RAISE THE CAPITAL

In order to raise capital for the proposed project both the owners savings and

fund any reliable financial institution. Although institutions usually have

their terms and conditions that their clients have to sign before services are

rendered.

These terms and conditions include:

60
 1. The debenture loan sough must be secured on the project fixed assets is

inadequate; collateral security may be added.

2. The institution should not provide more than 70% of the total project cost.

Therefore, the balance of 30% should come from the owners equity

shares.

According to terms and conditions, I have suggested for the proposed projects, with

the following capital structure which, I believe will be acceptable to the financial

institutions.

Equity shares 40% of TIC = N142,220,538.6

Bank overdraft 10% of TIC = 35,555,134.64

Debenture loan 50% of TIC = N177,775,673.2

6.14 SUMMARY OF ECONOMIC ANALYSIS

COST ESTIMATION COST (N)

Purchased equipment 76,784,655.3

Total capital investment 355,551,346.4

Annual raw profit 1.041,000. 833

Total production 85,645,388.4

Annual net profit 2.5x10’’

Break-even point(unit) 14.093,598.33

61
Break-even point (Naira) 7,046,799,164

Payback period 1.4(1 year and 4 months)

6.15 OTHER ECONOMIC BENEFITS

Apart from commercial viability reasons, this proposed project will also take care of

socio economic benefits which include: job creation, increase in

government revenue, establishment of industrial linkage, provision of socio-

amenities and diversification of the economy.

62
 CHAPTER SEVEN

7.0 PLANT LOCATION AND LAYOUT

7.1 PLANT LOCATION

The place or area the plant is situated has the profitability of the project and the

scope for future expansion. Therefore, many factors are considered when selecting a

suitable site for thebaking powder Production plant. They include:

Availability of raw material or feedstock: The main raw material needed in

Plantain chips Production plant in large quantity in Nigeria, is in (Imo, Akwa Ibom

Ebonyi etc). The plan site should be located near where the raw material is

available in order to reduce transportation cost, also the purchase price, availability

and reliability of the supply should also be put into consideration. Hence, the

proposed plant site will be at industrial clusters, in owerri Imo state.

Availability of energy: The plant will run production and will require continually

with constant supply of energy, but due to the inconsistent

character of energy supply in the country, it will depend on beer energy source.

Therefore, an alternative means of energy will be provided (Generator power).

Transportation: The plantain Production plant will be provided with adequate

transport facilities for case in the distribution of goods at various destinations. The
63
transportation modes will includes trucks, buses etc. This production plant will be

located close to a good access and for easy

distribution of the finished good to the customers.

Market assessment: The marketing problem will be tackled by carrying out pre-

marketing research to find but how the consumer assessed to before producing to

large quantity.

Also, when this is known, the product will be located near a primary market

where a buyer can comfortably purchase the finished product; also cost of the

product will be relatively low.

Site characteristics: Test boring information will be made available for the entire

plant site, there will be adequate drainage system to avoid stagnant water, since

industrial cluster Nekede, Owerri in a leveled ground there will be no sloppy or

construction cost on the plant site.

Community factors: The development of this project will include representatives

from the community it is sited, also worked will include indigenes of the

community, so that it will stand as a job generator not only for outsiders but also for

indigenes of the community.

64
Also if the community officials and the company representative develop a method

of interacting together, it will determine the extent to which the community will

boost and support the project from hoodlums and theirs.

Labour supply: Labour needed for the construction and operation of this plantain

Production plant will include both skilled (brought from outside) and will paid to

pay scales of every individual or group of workers. Also there should be training

(workshop) to enlighten the unskilled ones.

Waste disposal: There will be proper treatment of waste in the industry by

adopting the ISO (international Standard Organization) which is set aside for

guiding the interest of the nation. In order for the company not to pollute the

environmental there will be large waste management until for treatment of waste in

the plant before disposal.

Taxation and legal restriction: The plant will run for two years as stipulated by

the legal regulation of Nigeria . This is to build a strong grand for industrial. plant

which is located at No. 3, industrial Cluster, owerri Imo State, is an area mapped

out for industries.

The area is for only industry, because individual buildings are restricted from the

area, to avoid the industrial equipment causing nuisance.

65
7.2 PLANT LAYOUT

This involves where the plant will be suited, which is at No No. 3, industrial

Cluster, nekede Imo State . It also involves the space requirement, to ensure

continuous and steady movement for the production take place.

These include:

Personal, operating equipment, storage space, material shading equipment and all

other supporting devices along with the design of the best structure to accommodate

the named facilities.

7.2.1 OBJECTIVES OF PLANT LAYOUT

• Providing comport and catering to workers

• Providing good and improved working conditions

• Minimizing delays in production and making efficient use of the space that

is available

• Having a better control over the production cycle and other activities within

the plant premises.

66
PLANT LAYOUT

Security office
Vehicle park Weigh bridge

General Manager’s
Reception office Office

Filling Station
Loading and
Chemical Office uploading

Storage room for raw

material
Administrative block

Processing House

Finished Product
Store for Packaging

Waste treatment Utilities

plant and disposal Storage room for
office finished goods
Room for expansions
Administration building: Located far away from potential hazardous plant area,

67
• Central control room (CCR): Located adjacent to processing unit, but with

potential hazardous processes

• Field auxiliary room (FAR): Located right inside the plant area. It is a mini

control room

• Tank farm: Located close to the plant for supply of raw materials and also

close to loading and exist point for easy movement of trucks

• Maintenance workshop: Located far from the administrative officers and

close to the plant for easy maintenance and repairs of equipment. There is a

good network for easy transportation of machineries to and from the building

• Laboratory: Located far from potential hazardous area, but not too far from

plant. It is where samples of batches are tested for standard

• Emergency block: Located close to potential hazardous area, it consists of

fire station, fire pumps. Fire pumps are situated at each of the layout in case

of emergency

• Plant area: A place where production takes place

• Car park: Located very far from plant

68
• Canteen: Located not far from administrative building, so that workers will
not spend which time going to where they can refresh thereby abiding their
work.

• Clinic: Located very close to plant, to ensure urgent attention to any injured
worker

• Residential area: Located very far from plant it is where company staffs
reside, for the safety of the workers.

• Mustard point: Located close to different structures in the industrial area, to

enhance easy convergence of staff during emergency.

7.3 ENVIRONMENTAL IMPACT ASSESSMENT

Environmental impact analysis was carried out on the early stage of this design, to
investigate the likely environmental challenge that will be posed by the proposed
plant on the environment. The environmental challenges which is likely to be
caused by waste (by products of Malt production and waste water). That is why the
waste water will be treated before disposal and by products sold to people or
company that will need them for production. All these are done to presence the
earth and protect its habitant.

69
 CHAPTER EIGHT

8.0 PLANT SAFETY AND LOSS PREVENTION

Safety is a state of being staff freedom from the occurrence or risk of injury,

danger or loss.

Therefore, for a potential organization to run safe and efficient plant

operation there should be legal and moral obligation to safe guard the welfare of

employees and public at large. In the sense that all unit operation and unit processes

should be carried out under appropriate condition. While loss prevention is all the

effective measures put in place to contain potential

financial loss posed by accidents in the overall plant preview. These losses can lead

to the shutdown of the company or plant.

8.1 PROCESS CONTROL AND HAZARD CONTROL

PROCESS CONTROL

This is a system established in the plantain Production industry which involves the

effective use of instrumentation to yield high efficiency with less harm on the

people and less hazard in the plant during operation. This system generally

improves production and maintains the output within the desired range. The

processes system can be set up in a different room where every

70
individual equipment or connection in the factory and other section of plant is

connected to in order to rapidly put to a halt any occurring hazard.

HAZARD CONTROL

Is a system used in industry to minimize or eliminate exposure to hazards.

System used to prevent and control hazard includes engineering control, safe work

practices, and administrative controls, personnel protective equipment, systems to

track hazard correction, preventive maintenance system and

medical.

To ensure that hazard occurrences are minimized in the Malt Production industry,

regularly and thoroughly maintain equipment, ensure the hazard

correction procedure are in place, ensure that everyone know how to use and

maintain personal protective equipment (PPE), make sure that everyone

understands and follow safe work procedures and ensure that when needed there is

medical program tailed to the facility to help prevent work place hazard and

explosion.

8.2 IDENTIFICATION OF POSSIBLE HAZARDS

Hazards are unpredicted, unplanted occurrence that is harmful to personnel,

machineries and materials, and it can cause complete breakdown of a running plant.

71
Possible hazards of Malt production plant include:

The effect of water, carbohydrate and dietary fiber on the pumps and piping

materials of construction. When water is retained in a washing tank for a long time,

it will rust, also when allow, are exposed to moisture in air it corrodes.

PREVENTION MEASURES

There should be containment during the design of equipment and piping, and water

after washing the raw production should be discarded in order to avoid rust, there

should be ventilation.

REACTIVITY: CHO reacts with oxygen in the following vedox equation.

C6H12O6+6O2------------------------6CO2+6H2O

The carbon dioxide and water is a waste product and reaction is exothermic, and

when it is not accounted for can lead to breakdown of equipment.

VENTILATION

Fans will be installed to reduce odour and lower humidity; there will be windows

and doors all around the plant area, to ensure adequate ventilation.

CORROSION

Moisture enhances corrosion on material of consumption like Alloy,

72
therefore water should always be transferred to waste tanks to avoid corrosion.

OPERATION AND HUMAN ERROR

Since human errors are inevitable, impite training, education and exposure, safety

measures will be adopted in order to minimize and prevent the various human

errors.

They include:

 Adequate training of staff in safe start-up and shut down of equipment,

overall operation and maintenance.

 Adequate dressing kit for specified operation.

 Adherence of safety rules and regulations.

 Keeping away from moving parts of machines and devices while

handling properly etc.

73
 CHAPTER NINE

CONCLUSION AND RECOMMENDATION

9.1 CONCLUSION

Based on the economic analysis of this plant design, it can be seen that it is worth

investing on so that the implementation of what is contained in this work could be

achieved.

Since the total investment is N355, 551, 346.4 net profit N2.5x 1011, this

shows that the company can repay borrowed capital within a short period of time

and this profit will bring open doors to the economy of the state and Nigeria at

large.

9.2 RECOMMENDATION

This plant will employ a new and unique processing technology. This has already

made it to stand a ground of competing and heating other competitors in the market.

Since this plant is aimed at production, the product will not reluctantly shut down,

rather it has been programmed to produce in order to meet the increasing demand of

customers. Its administration will not frustrate employees and will not let the firm

down.

74
 REFERENCES

Anton, A.A. and Luciano, F.B. (2007). Instrumental texture evaluation of extruded
snack foods: a review. Ciencia Y Tecnologia Alimentaria 5: 245-251.

Berwal, J.S., Dhanda, J.S. and Berwal, R.K. (1996). Studies on rice and turkey meat
blend papads. J. Food Sci. Technol. 33: 237- 239.

Biswas, A.K., Sahoo, J., Chatli, M.K. and Sharma, D.K. (2009). Effect of lactic
acid, calcium chloride and papain on the physicochemical and sensory
qualities of turkey meat chunks. Indian J. Poult. Sci. 44: 131-133.

Bourne, M.C. (1978). Texture profile analysis. Food Technol. 32: 62- 66. Gibbs, P.
and Gekas, V. (2010). Water activity and microbiological aspects of foods
a knowledge base.Accessed on April, 15, 2013,

Glabe, E.F., Anderson, P.W. and Laftsidis, S. (1984). Potato Snacks and Method of
Preparation. United States Patent No. 4455321.

Helmenstine, A.M. (2013). What is the difference between baking soda and baking
chemistry.about.com/cs/foodchemistry/f/blbaking.htm.

Jean, I.J., Work, R., Camire, M.E., Briggs, J., Barrett, A.H. and Bushway, A.A.
(1996). Selected properties of extruded potato and chicken meat. J. Food Sci.
61: 783-789.

Keeton, J.T. (1983). Effect of fat and sodium chloride/phosphate levels on the
chemical and sensory properties of pork patties. J. Food Sci. 48: 878-881.

Lee, S.O., Min, J.S., Kim, I.S. and Lee, M. (2003). Physical evaluation of popped
cereal snacks with spent hen meat. Meat Sci. 64: 383-390.

Little, A.C. (1975). Off on a tangent. J. Food Sci. 40: 1667-1671. Omana, D.A.,
Moayedi, V., Xu, Y. and Betti, M. (2010). Alkali-aided protein extraction
from chicken dark meat: textural properties and color characteristics of
recovered proteins. Poultry Sci. 89: 1056-1064.

Park, J., Rhee, K.S., Kim, B.K. and Rhee, K.C. (1993). High-protein texturized
products of defatted soy flour, corn starch and beef: shelf-life, physical and
sensory properties. J. Food Sci. 58: 21-27.

75
Sen, A.R., Naveena, B.M., Muthukumar, M., Babji, Y. and Murthy, T.R. (2005).
Effect of chilling, polyphosphate and bicarbonate on quality characteristics
of broiler breast meat. Br. Poult. Sci. 46: 451-456.

Sharma, B.D. and Nanda, P.K. (2002). Studies on the development and storage
stability of chicken chips. Indian J. Poult. Sci. 37: 155-158.

Singh, P., Chatli, M.K., Sahoo, J. and Biswas, A.K. (2012). Effect of different
cooking methods on the physico-chemical and sensory attributes of
chicken meat caruncles. Indian J. Poult. Sci. 47: 363-367.

Singh, V.P., Sanyal, M.K., Dubey, P.C., Sachan, N. and Kumar, V. (2011). Chicken
snacks as affected by storage conditions under aerobic and vacuum
packaging at 30±2°C. African J. Food Sci. 5: 620-625.

Snedecor, G.W. and Cochran, W.G. (1994). Statistical Methods. (8th edn.), Iowa
State University Press, Ames, Iowa. Trout, E.S., Hum, M.C., Johnson,
D.E., Clans, C.L. and Kroff, D.H. (1992). Characteristic of low fat ground
beef containing texture modifying ingredients. J. Food Sci. 57: 19-24.

76
APPENDIX

Plant attachment 95% =95/100 = 0.95

Number of days to be engaged in production

= 0.95x365—346.75=347 days

34/days/year

347x24 = 8328 hours/year

Plant capacity on installation = 500,000 tones/year

1 tonne = 1000kg

500,000 tones =?

= 500,000 tones xl000kg= 500,000,000kg/year

1tonne

Mass of meat= 500,000.000

8328 =60038kg/hr

Quantity of plant in required per hour = ?

To change days to kilogram

That is 347000,000 =1000,000kg

347 24

= 41666.7kg/hr

77
ENERGY BALANCE ASSUMPTION FOR CRYSTALLIZER

Q=MCpΔT

Washed meat = 41666.7kg/hr

MCpT =MCp T ΔMv

41666 .7kg/hrX3.91kgX(60°-0) =28666 .7kj/kg(90°60°)+Mv

41 666.7kg/hrX3.91kj/kgx60° =28666kg3.9kj/kg(30°)+Mv

=9775007.82kg/hr = 3,362,603.91+Mv

Making Mv subject

MV = 9775,0007.82-3362,603.91

Mass vapour = 6412,40191kg/hr

COSTING OF THE EQUIPMENT

Cost for sealer assumption

Purchase cost in 2024 = £4,000

Costindexin 1990 = 60

Cost index in 2024 = 80

From 1990 to 2024 = 3 yrs

(80-60) 20 index

78
3 years = 20 (from 1990—2023)

22 years ?

=20 x 22

31

= 146.6

Cost index for solar dryer in 2015

146.6+80=226.6

C = 4000

n = 0.35

S = 10m²

Ce = CXSⁿ

£4000 x 10m2(0.35)

£4000 x 10m2(0.35)

£11,413.5(2023)

Update cost

2024 x 2015

2024

11,413.5x 226.6

79
= 11,413.5 x 2.8325

= £323287

CONVERT TO NAIRA

Exchange rate = £1 = N500

Therefore £32328.7 =?

£32383 x N 500

£1

= N9,698,610

For cooling and deoiling machine

Purchase cost in 2024 = £1750

Cost index in 1990 = 60

Cost index in 2024= 3 yrs

(80-60) = 20 index

3 years = 20 (from 1990 -2024)

22years =? (from 2024 —2015)

= 20 x 22

80
 3 1

= 146.6

Cost index for cooling in 2015

145.6+80=226.6

C=1750

n =200kg/h

S = 200kg/h

Ce =CXSⁿ

£1750x(200)°35

£11,178.8

Update cost

2023x 2015

2023

11,178.8 x 226.6

80

11,178.8x2.8325

=£31,663.951

81
Convert to Naira

Exchange rate = £1 = ₦500

Therefore £4000 x 10m² (£3163.951)= ?

£31663.951x=₦500

£1

=9,499.185.3

CENTRIFUGE

Purchase cost in 2024 = £1000

Cost index in 1990 = 60

Cost index in 1990 = 80

From1990 to 2024 = 3 years

(80-60) = 20 index

(If 3 years = 20 (from 1990— 2024)

22years=?

20 x 22

31

=146.6

82
=146.6

Cost index for pasteurizer in 2015

146.6+80=226.6

C=1000

n = 0.75

S 30m

Ce = CXSⁿ

£1000 x (00)°.75

£12,818.6

Update cost

2024 x 2015

2023

12818.6 x 2.8325

=£36,308.68

Convert to Naira

Exchange rate = £1 = N500

Therefore £31663.951 =?

£36,308.68 x N500

83
= ₦10,892,604

Purchase cost in 2024 = £2,500

Cost index in 1990 = 60

Cost index in 2024= 80

From 1990 to 2024= 3 yrs

(80-60) = 20 index

If 3 years =20 (from 1990—2024)

22 years= ? (From 2024 - 2024)

20 x 22

3 1

= 146.6

Cost index in 2015

146.6+80 = 226.6

C = 2500

n = 0.75

S =40M

Ce = CXSⁿ

£2500x(40)0.75

£39,763.5

84
Update Cost

2024 x 2015

2023

39,763.5 x 226.6

80

= 39.763.5z2.8325

= £112,630.1

CONVERT TO NAIRA

Exchange rate = £1 = ₦500

Therefore

£31663 951 = ?

£112,630.1X₦500

£1

=N33,789,030

FOR washing machine

Purchase cost in 2023 = £1,250

Cost index in 1990 = 60

Costindexin2024 =80

From 1990 to 2024=3yrs

85
(80-60) = 20 index

If 3 years = 20 (from 1990 — 2023)

22years = ?

=20x22

3 1

= 146.6

ECONOMIC CAPITAL

TOTAL PURCHASE COST OF MAJOR EQUIPMENT (PCE)

pasteurizer = N94991 85.3

dryer = N969810

washing machine = N10,892,604

Spice blend = N33789030

stuffer = 795 5664

Blancher = N4949562

Total purchase cost of major equipment =

PCE = £255948.85 =N76,784655.3

ESTIMATION OF FIXED CAPITAL COST, REF TABLE 6.1

Total physical plant cost (PPC)

= ₦76,784655.3(i+2.15)

86
= ₦76,784655.3x3.1 5

= ₦241,87,664.2

Fixed capital = ₦24 1, 871664.2(1+0.4)

= 241 871664.2

Fixed capital 241,871664.2(1+0.4)

= N241871664.2x1 .4

WORKING CAPITAL (5% OF FIXED CAPITAL)

Allow 5% 5/100 = 0.05

= 0.05 x ₦338,620.329.9

= ₦16,931,016.49

TOTAL INVESTMENT CAPITAL (TIC)

TIC = Fixed capital + working capital

= ₦338,620,329.9 ± ₦16,931,016.49

= ₦335,551,346.4

ANNUAL OPERATING COST (REF TO TAB 6.6)

Operating time 34 days /annum

34days x 24 = 8328 hrs/year

VARIABLECOST

Electric power 700mj/d

87
ESTIMATED RAW MATERIAL

1. Raw meat = 500,000,000kg/yr

41,667kg/hr:347x24X3

1000

==₦1,041,000.833

PLANT ATTAINMENT 95%

2.Miscellaneous material (10% of working capital)

= 0.1 x ₦16,93,0l6.49

= ₦1,693,101.64

3. Utilities (Cost from table 6.5)

Power at 1 .2p/mj = 1.2 x 709 x 347

100

=2,914.8

4. Shipping and packaging = negligible

Variable cost: ₦1,041,000.833 + ₦1693101.64+ ₦2,914.8

=₦2,737,017.273

5. Maintenance (5% of fixed capital)

= 0.05 xN338,620,329.9

= ₦16,931,016.5

6. Operating cost for labour: (assumed £20,000/annum) it also allow for overheads.

88
= £20,000 = ₦6,000,000

7. Supervision: no additional supervision needed

8. Plant over heads (50% of operating labour)

= 0.50 x N6,000,000 = N3,000,000

9. Laboratory (20% of operating labour)

= 0.20 x ₦6000,000

10. Capital charges (15% of the fixed capital)

= 0.15 x ₦338,620,329.9

11. Insurance (1 % of fixed capital)

0.01 x ₦338,620,329.9

12. Local taxes (2% of fixed capital)

= 0.02 x ₦338620,329.9

= ₦6,772,406,598

13. Royalties: not applicable

Fixed cost (₦16931,016.5+ ₦6,000,000+ ₦5000,000

+ 1,200,000+50,793,094.49 + ₦3,386,299 + ₦6772,406,598)

= ₦6,853,716,867

Direct production cost

DPC = variable cost + fixed cost

= ₦2,737,017,273 = ₦6,853,7l6,867

89
= ₦6,856,453,884

14. Sales expense 10% of direct production

15. General overheads cost

16. Research and development 0.10 x ₦6,856,453,884

Annual production cost = 685,645,3 88.4

Unit production cost = Annual production cost

Annual production rate

= ₦685,645,384.4x 100

500,000,000

= ₦13.7

Selling price = ₦500

COMMERCIAL VIABILITY

This can be assessed by the relationship between the operating cost and

revenues both in absolute amount and in relative terms.

NET PROFIT/ANNUM:

It is an annual profit after various taxes are paid.

PV = Annual turnover — Annual cost of production

Annual turn-over = Quantity of sales X Selling rate

90
500,000,000x₦500

=2.5x100000000000

NPV=2.5 x 100000000000 - 685,645,3884

=2.49 x100000000000

ANNUAL COST OF PRODUCTION (NPR)

Annual profit x100

Annual sales 1

2.49 x 100

500,000,000kg/hr

= 49,800%

RATE OF RETURN (ROR)

It is the percentage of profit after tax but before depreciation to the total

invested fund.

= Profit (per year) x 100

Total investment capital 1

=2.49 x 1011 x 100

355,551,346.41

= 70,032.079% = 70%

91
BREAK-EVENPOINT IN UNITS

= Fixed cost

Contribution

Contribution= sales cost - variable cost

= ₦6,853,716,867

₦486.3

= 14,093,598.33units

BREAK-EVEN POINT IN NAIRA

= Fixed cost

1-variable

Sales cost = 6853,716,867

1-13.7

500

= 6,853,716.867

1-0.0274

6,853.716,867

0.9726

= 7,046,799,164

92
PAY-BACK PERIOD

Total investment

Return

355,551,346.4

2.5x1011

1.422205386 x 10

= 3years

93