SLIDE FYDP2

SAPP 1
FINAL YEAR DESIGN PROJECT 2

COMPANY PROFILE
SAPP 2
NORAISHAH BINTI AMIN
MOHD FAIZ BIN MOHD KHALIL
NUR HIDAYAH BINTI MUSA@ABDULLAH
RADIAH BINTI RAZALI
MOHD ZAKIMAN BIN OTHMAN
NOR EZATY BINTI ABDUL RASHID

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

PRESENTATION OUTLINES
INTRODUCTION
DESIGN OF EQUIPMENT
PROCESS CONTOL AND INSTRUMENTATION
PROCESS INTEGRATION
ENVIRONMENT, WASTE PREVENTION AND TREATMENT
ECONOMIC ANALYSIS
PLANT SAFETY AND LAYOUT
SAPP 4

Introduction
STEARIC ACID PRODUCTION PLANT (SAPP)
SAPP 5

Located in Sei Mangkei, Simalungun, Sumatra, Indonesia.
The plant area is 40 hectares.
The production is 100 000 MT/year of stearic acid.
The applications of the stearic acid are in pharmaceutical product, soap and detergent,
cosmetic product, candies and fireworks.
High demand in China, Malaysia and USA (Statistic Indonesia,2014).
High quality of stearic acid as main product, palmitic acid, myristic acid and glycerol as
side product.
The plant is operated with four main unit operation, U100, U200, U300 and U400.
The company is comply with The Manpower Act of Indonesia No.13 of 2003, that every
organization need to comply with OSH.
The company must comply with the Environmental Regulation of Indonesia.
SAPP 6
PLANT DETAILSINTRODUCTIONINTRODUCTION

PROCESS DETAILS
COLGATE EMERY PROCESS – CONTINUOUS HIGH PRESSURE SPLITTING
SAPP 7
INTRODUCTIONINTRODUCTION
UNIT 100
UNIT 200
UNIT 300
UNIT 400
UNIT 500

Design of Equipment
SAPP 8

SPLITTING COLUMN (T-100)
SAPP 9
DESIGNOFEQUIPMENT
Introduction
• The feedstock are the crude palm oil and water.
• Natural oils-triglyceride of various fatty acids are
hydrolysed into free fatty acids and glycerine.
• The counter-current splitting process in a tower
is suitable for the handling of larger feed rates.
• It operates continuously.
• High splitting temperature ensures the adequate
dissolving of the water phase in the fat .
• Degree of splitting can be achieved up to 99%.
• The products are fatty acids and Sweetwater.
(Lurgi,1991)
28
Water
Crude palm oil
Steam
Fatty acids
Sweetwater

2-PHASE SEPARATOR (V-200)
SAPP 10
DESIGNOFEQUIPMENT
DESIGNED BY: NUR HIDAYAH BINTI MUSA@ABDULLAH (2011689822)
• Separator is used to separate water and glycerine.
• These mixture consists of component that do not
react chemically and have visible boundaries of
separation between the different phases.
Introduction
• Vertical two-phase separator.
• Vertical separator preferred for separating liquid
from mixtures with high gas liquid ratio or total gas
volume (Svreek and Monnery, 2013).
Type of
Separator
DESIGNOFEQUIPMENT

CHEMICAL DESIGN
Description
Operating Temperature (K) 393.25
Operating Pressure (kPa) 100
Mass Flow Rate for Vapour,
𝑚 𝑣 (
𝑘𝑔
ℎ𝑟
)
0.6752
Mass Flow Rate for Liquid,
𝑚 𝐿 (
𝑘𝑔
ℎ𝑟
)
149.33
Terminal Velocity, 𝑈 𝑇 (
𝑚
𝑠
) 0.58
Vapour Velocity, 𝑈𝑣 (
𝑚
𝑠
) 0.44
Vessel Diameter (m) 1.5
Total Vessel Height, 𝐻 𝑇 (𝑚) 5.2
Volume of Vessel, V (𝑚3
) 9.19
MECHANICAL DESIGN
SAPP 11
Description
Material of Construction Stainless
Steel
Head Cover Type Tori Spherical
Total Weight of Column (kN) 32.12
Stress in Column (N/𝑚𝑚2
) 2.54 x 10−3
The Resultant Longitudinal
Stress (N/𝑚𝑚2
)
4.91
Differences in Principal Stress
(N/𝑚𝑚2
)
2.32
Type of Skirt Straight-Skirt
Support
Material of Construction of
Skirt Support
Plain Carbon
Steel
DESIGNOFEQUIPMENTDESIGNOFEQUIPMENT

SAPP 12
DESIGNOFEQUIPMENT
DRAWING (V-200)
DESIGNOFEQUIPMENT

FALLING FILM EVAPORATOR (V-201)
SAPP 13
DESIGNED BY: NORAISHAH BINTI AMIN (2011837938)
Introduction
• To concentrate a solution of glycerine in water. The water is
vaporized and concentrated solution of glycerine is produced.
• Falling film evaporator provides the highest heat transfer coefficient.

SAPP 14
DESIGNOFEQUIPMENT
Value
Liquid flow rate 2514.2069 kg/h
Vapour flow rate 359.7499 kg/h
Pressure of steam
injected
4 bar
Steam flow rate 261.17 kg/h
Energy supplied 202.7943 kW
Area of evaporator 10.197 m2
Height of evaporator 2.951 m
Diameter of
evaporator
1.1 m
Feed inlet nozzle
diameter
0.22 m
No. of tubes 26
Efficiency of
evaporation
96.89%
Steam economy 1.38
Value
Material of
construction
Stainless steel
(SS316)
Minimum wall
thickness
11 mm
Type of head
closure
Ellipsoidal head
Skirt support Straight cylindrical
support
Material of skirt
support
Carbon steel
Total weight 50.7343 kN
Skirt height 1 m
CHEMICAL DESIGN MECHANICAL DESIGN
DESIGNOFEQUIPMENT

DRAWING (V-201)
SAPP 15

SAPP 16
• Distillation is the separation of
liquid mixtures depends on the
volatility, or the differences in
boiling points in each of the
components.
• Basically, the top product has
lower boiling point than the
bottom product.
Feed: Water,
Linoleic acid, Oleic
acid, Palmitic acid
and Myristic acid
Top: Water and Myristic
acid
Bottom : Linoleic acid,
Oleic acid, Stearic acid
Palmitic acid and
Myristic acid
DISTILLATION COLUMN (D-300)
DESIGNED BY: RADIAH BINTI RAZALI (2011479644)
Introduction
DESIGNOFEQUIPMENT

MECHANICAL DESIGN
SAPP 17
Parameter Value
Column types Pressure vessel
Column material Stainless steel 304
Column head Torispherical head
Column diameter , mm 2.466
Design temperature, ºC 270.49
Design pressure N/mm2 0.132
Thickness of column ,mm 12
Skirt support height ,m 3
Skirt thickness, mm 12
Skirt type Straight Cylindrical shell
Bolt circle diameter, mm 1618
Insulation Material Mineral wool
Height of column ,m 21
Parameters Value
Column Diameter, m 2.466
Column height, m 21
Number of stages 36
Column efficiency, % 43%
Rmin 0.6339
Plate thickness, mm 5
Tray spacing, m 0.5
Total pressure drop, mm 86.6682
Residence time, s 16 s
Number of feed location 12
Plate material Stainless steel 304
CHEMICAL DESIGN

SAPP 18
DESIGNOFEQUIPMENT
DRAWING (D-300)
DESIGNOFEQUIPMENT

DISTILLATION COLUMN (D-301)
SAPP 19
DESIGNED BY: MOHD ZAKIMAN BIN OTHMAN (2011802714)
• In this column, the feed of second
distillation column is mainly consist of
palmitic, stearic, linoleic and oleic.
• The operating condition is at 1mbar.
The feed temperature is 161°C.
• The top product is palmitic acid with
purity of 95%.
• The bottom product is mainly is oleic,
linoleic and stearic.
DESIGNOFEQUIPMENT
41
Introduction

CHEMICAL DESIGN
SAPP 20
Condition Value
Feed, F41 Flowrate 82.2992 kmol/hr
Temperature 519.05 K
Pressure 120 kPa
Distillate,
F42
Flowrate 49.0465 kmol/hr
Pressure 0.5 kPa
Bottom, F45 Flowrate 44.9451 kmol/hr
Pressure 0.5 kPa
Column Minimum reflux ratio, Rmin 0.6431
Optimum reflux ratio, R 0.9645
Minimum number of stages, Nmin 23
Plate efficiency, E0 0.5299
Number of Actual Stages, Nactual 41
Feed point location, Ns 15
Column diameter, Dc 2.0514 m
Column area, Ac 3.305 m2
Column height, H 24 m
Turn down 85 %
Plate pressure drop, ht 77.5003 mm
Plate Plate material SS 304
Downcomer Area, Ad 0.397 m2

MECHANICAL DESIGN
SAPP 21
Conditions Value
Operating Condition & Material Construction
Operating pressure 1.2 bar
Operating Temperature 469.15 K
Design pressure 1.320 bar
Design Temperature 488.75 K
Safety Factor 10 %
Material construction Stainless steel 304
Design Column Dimension
Column height, hc 24 m
Shell thickness, e 12 mm
Type of head closure Torispherical head
Thickness of head, eD 12 mm
Column Weight
Total Weight, W 315.459 kN
Vessel Support
Type Straight cylindrical skirt
Material construction Stainless steel

DRAWING (D-301)
SAPP 22
DESIGNOFEQUIPMENT

HEAT EXCHANGER (E-302)
DESIGNED BY: MOHD FAIZ BIN MOHD KHALIL (2012831684)
t2: 40.0C
S43
T1: 182.5C
S44
T2: 60.0C
t1: 30.0C
Palmitic Acid Cooler (E-302)
Type
Heat Exchanger Floating Head (Type AES)
Flowrate
Palmitic Acid
Cooling Water
10,031.81 kg/hr
70,375.95 kg/hr
Fluid Allocation
Tube
Shell
Palmitic Acid
Cooling Water
Objective
Palmitic Acid Outlet Temperature 60°C
23
DESIGNOFEQUIPMENT
SAPP

Tube Side (Palmitic Acid)
Mass Flowrate, mt
Tube Side Velocity, Ut
Tube Length, L
Tube Outside Diameter, Do
Tube Inside Diameter, Di
Tube Pitch, Pt
Number of Tubes, Nt
Tube Passes, Np
Tube Per Passes, Nt/p
Heat Transfer Coefficient, ht
Pressure Drop, ΔPt
10031.81 kg/hr
1.0342 m/s
5.0000 m
0.0165 m
0.0140 m
0.02063 m
176 Tubes
8 Passes
22 Tubes
453.29 W/m2.°C
52.27 kPa
Shell Side (Cooling Water)
Mass Flowrate, ms
Shell Side Velocity, us
Diameter of Shell, Ds
Bundle Diameter, Db
Heat Transfer Coefficient, hs
Pressure Drop, ΔPs
70375.95 kg/hr
0.4848 m/s
0.4490 m
0.3930 m
1594.80 W/m2.°C
28.89 kPa
24
Parameters SI Unit
Process Condition
Heat Load, Q
Heat Transfer Coefficient Calculated, Uo,calc
Heat Transfer Area, Ao
Log Mean Temperature Different, ΔTlm
True Mean Temperature, ΔTm
817.05 kW
267.20 W/m2.°C
45.6263 m2
72.20°C
68.87°C
DESIGNOFEQUIPMENT
CHEMICAL DESIGN
SAPP

MECHANICAL
DESIGN
Parameter
Value (SI Unit)
Tube Shell
Design Pressure
+ 10% Above Normal
Working Operation
0.2255
N/mm2
0.1485
N/mm2
Design Temperature
+ 10% To Cover
Uncertainties In Prediction
200.8 °C 44.0 °C
Material of Construction Stainless
Steel
(SS316)
Carbon
Steel
(A285)
Corrosion Allowance 1.00 mm 1.60 mm
Design Stress
+ Taken Above The Design
Temperature
120
N/mm2 @
200°C
135
N/mm2 @
50°C
Minimum Wall Thickness 1.25 mm 7.90 mm
Head & Closure
+ Front Head: Torispherical
+ End Closure: Flat Plate
Thickness = 2.04 mm
Thickness = 1.77 mm
Support Type: Saddle Support
Maximum Allowable Weight:
35 kN
Bolt Diameter: 20 mm
Bolt Holes: 25 mm
Baffles Type: Single Segmental
Number of Baffle: 10
Diameter of Baffle: 0.417 m
Baffle Spacing: 0.449 m
Baffle Thickness: 4.80 mm
Weight Load
+ Shell
+ Tubes
+ Fluid Inside Shell
+ Fluid Inside Tubes
+ Insulator
+ Total Weight
5.0610 kN
3.3090 kN
7.7670 kN
0.1310 kN
0.6750 kN
16.9430 kN
25
DESIGNOFEQUIPMENT
SAPP

DRAWING
26SAPP
DESIGNOFEQUIPMENT

PACKED BED REACTOR (R-400)
SAPP 27
DESIGNED BY: NOR EZATY BINTI ABDUL RASHID (2011492252)
DESIGNOFEQUIPMENT
• Reaction
• The reaction that takes place in the reactor is the hydrogenation process.
• Hydrogenation reaction is carried out under hydrogen gas pressure in presence of
Nickel catalyst, high temperature and nil moisture conditions.
• Reaction of the process is considered as heterogeneous reactions because the
reactants are in liquid and gas phase meanwhile catalyst is in the solid form.
• PBR will give a high conversion, simple design, and much cheaper.
Introduction
DESIGNOFEQUIPMENT

CHEMICAL DESIGN
Type of Reactor Packed Bed
Reactor
Design Orientation Vertical
Volume of reactor,
m3
18.39
Diameter of
reactor, m
2.27
Height of reactor,
m
4.54
Residence time,
sec
80.4
MECHANICAL DESIGN
Operating Condition
Design Pressure, kPa 2200
Design Temperature, oC 216.81
Material of Construction Stainless Steel 316
Wall Thickness, mm 25
Head and Closure Design
Type Ellipsoidal Head
Thickness, mm 25
Support Design
Type Skirt support
Material of construction Stainless Steel
Skirt thickness, mm 29
Skirt height, mm 3000
SAPP 28

SAPP 29
DESIGNOFEQUIPMENT
DRAWING (R-400)
DESIGNOFEQUIPMENT

Process Control &
Instrumentation
SAPP 30

Objectives
1. Keep Process Variables In Safe Operating Limits
2. Detect Dangerous Situation & Provide Alarm
3. Maintain Desired Production Rate
4. Maintain Desired Product Quality
5. Maintain Steady Plant Operation With Minimal Operator
Intervention
SAPP 31
PROCESSCONTROLPROCESSCONTROL

Fat Splitting Column
(T-100)
Variable Manipulated Disturbance Setpoint
Flow Inlet Flowrate
of Feed
Fluctuation of
Supplied Feed
Flowrate
Water: 12,700
kg/hr
CPO: 29,500
kg/hr
Level Top & Bottom
Product
Flowrate
Fluctuation of
Inlet Flowrate
Top: 27,100
kg/hr
Bottom: 15,100
kg/hr
Temperature Steam Inlet
Flowrate
Fluctuation of
Inlet Feed
Temperature
Operating
Temperature:
260°C
SAPP 32
FAT SPLITTING
COLUMN
TIC
TIC
TIC
LIC
LIC
TT
TT
TT
LT
LT
PG
PG
LV
TV
TV
TV
LV
FV
FIC
FT
FV
FIC
FT
STEAM
Operating Temperature: 260°C
Operating Pressure: 50 Bar

Separator (V-200)
Flow Inlet Flowrate
of Feed
Fluctuation of
Supplied Feed
Flowrate
Feed Flowrate:
15,080 kg/hr
Level Outlet Flowrate
of Liquid
Product
Fluctuation of
Inlet Feed
Flowrate
Liquid Product
Flowrate: 2,800
kg/hr
Pressure Flowrate of
Recycled Vapor
Into Ejector
Inlet Flowrate
of Steam Into
Ejector
Operating
Pressure: 0.5
Bar
SAPP 33
SEPARATOR
FT
FIC
LT LIC
PG
FV
LV
PI
PT
PIC
PV
STEAM
Operating Pressure: 0.5 Bar

Fractionation Column
(D-301)
Flow Inlet Flowrate
of Feed
Fluctuation of
Supplied Feed
Flowrate
Feed Flowrate:
22,550 kg/hr
Temperature Inlet Flowrate
of Steam In
Reboiler
Fluctuation of
Inlet Feed
Temperature
Reboiler
Temperature:
196°C
Level Bottom
Product Outlet
Flowrate
Fluctuation of
Feed
Composition
and Condition
Bottom Outlet
Flowrate:
12,200 kg/hr
Pressure Flowrate of
Recycled Vapor
Into Ejector
Inlet Flowrate of
Steam Into
Ejector
Operating
Pressure: 0.005
Bar
Ratio Flowrate of
reflux
Flowrate of
distillate
Reflux Ratio:
2.462
SAPP 34
FRACTIONATION
COLUMN
TT TIC
PI
LIC
PT PIC
LT
LIC
FTFT FFC
LV
TV
FV
LV
PV
PI
PG
PG
LT
COOLING
WATER
CONDENSATE
STEAM
FIC
FT
STEAM
C.W.
RETURN
(i)
(ii)
Top Temperature: 182.5°C
Bottom Temperature: 196°C
Operating Pressure: 0.005 Bar

Heat Exchanger (E-302)
of Cooling
Water
Fluctuation of
Inlet Feed
Flowrate / Inlet
Temperature of
Cooling Water
Outlet
Temperature:
60°C
SAPP 35
PI
COOLER
TT
TIC
PI
TV
COOLING
WATER
C.W.
RETURN
Palmitic Acid Cooler
Inlet Temperature: 182.5°C
Inlet Pressure: 1.85 Bar

Reactor (R-400)
Flow Inlet Flowrate
of Feed
Fluctuation of
Supplied Feed
Flowrate
Fatty Acids:
12,110 kg/hr
Hydrogen: 0.09
kg/hr
Level Outlet Flowrate
of Product
Fluctuation of
Inlet Feed
Flowrate
Product Outlet
Flowrate:
12,200 kg/hr
of Cooling
Water
Fluctuation of
Inlet Feed
Temperature /
Cooling Water
Temperature
Operating
Temperature:
130°C
SAPP 36
REACTOR
HYDROGEN
FV
FIC
FT
LT LIC
FV
LV
PG
TTTIC
TV
COOLING
WATER
C.W.
RETURN
FIC
FT
Operating Pressure: 20 Bar

Process Integration
SAPP 37

SAPP 38
PROCESSINTEGRATION
• Pinch analysis is one of the methods that guarantee
minimum energy levels in design heat exchanger network.
• A simple methodology for systematically analyses chemical
processes and the surrounding utility systems with the help
of the First Law Thermodynamics and Second Law
Thermodynamics (Ian, 2007).
INTRODUCTION
• To reduce energy consumption of the plant by exchanging
heat between the process streams.OBJECTIVE
PROCESSINTEGRATION

Problem Table Algorithm
Stream Condition 𝑻𝒊𝒏 (℃) 𝑻 𝒐𝒖𝒕 (℃) Shifted
𝑻𝒊𝒏 (℃)
Shifted
𝑻 𝒐𝒖𝒕 (℃)
1 Hot 167.0 45 162.0 40
2 Hot 167.0 25 162.0 20
3 Hot 120.0 65 115.0 60
4 Hot 130.0 85 125.0 80
5 Hot 51.2 25 46.2 20
6 Hot 182.5 60 177.5 55
7 Hot 130.0 60 125.0 55
8 Cold 25.0 65 30.0 70
9 Cold 110.0 120 115.0 125
10 Cold 35.0 130 40.0 135
SAPP 39
PROCESSINTEGRATION

Cascade Diagram
SAPP 40
PROCESSINTEGRATION
MINIMUM HOT UTILITY
= 4265.0823 kW
MINIMUM COLD UTILITY
= 8154.3892 kW
PINCH TEMPERATURE
= 115 ℃

The Network Design Above The Pinch
SAPP 41
PROCESSINTEGRATION

The Network Design Below The Pinch
SAPP 42
PROCESSINTEGRATION

Comparison Before and After Process Integration
Utility Before
Integration
(kW)
After
Integration
(kW)
Energy
Saving
(%)
Cost (USD/kJ)
(Source: Aspen
Utilities
Database)
Cost Before
Integration
(USD/year)
Cost After
Integration
(USD/year)
Cost Saving
(USD/year)
Hot 4998.0159 4265.0823 14.66 2.2 x 10−6
3.2586 x 105
2.7807 x 105 4.7790 x 104
Cold 9557.3157 8154.3892 14.68 2.12 5x 10−7
6.0187 x 104
5.1352 x 104
8.835 x 103
Total
(kW)
14555.3316 12419.4715 14.67 2.4125 x 10−6
3. 8605 x 105
3.2943 x 105 5.6625 x 104
SAPP 43
1. Energy Saving Percentage
PROCESSINTEGRATION
2. Cost Saving

Conclusion
Based on economic analysis, the average cost for a heat exchanger is
around USD150,000 and after applying heat integration, the number
of heat exchanger is increased from 10 to 16.
Therefore, it can be seen that total cost of 6 extra heat exchanger
are around USD900,000 but the total cost energy saving having extra
6 heat exchanger are USD56,625/year.
It is not recommended to proceed the heat integration because the
total utilities saving per year is not high enough to recover the total
cost for additional heat exchanger.
SAPP 44
PROCESSINTEGRATION

Environment, Waste
Prevention & Treatment
SAPP 45

Objectives
SAPP 46
ENVIRONMENT
1. To meet the water quality standard in Indonesia of COD, BOD, pH
and oil and grease values of discharge effluent from the processing
plant.
2. To ensure that water discharge does not pollute the watershed.
3. To improve the quality of water before being recycled to the
production plant.

SOURCES OF WASTE WATER IN PROCESS FLOW DIAGRAM
Waste water generated
from separator V-300
from separator V-200 A
from evaporator V-200 A
TOTAL WASTE
= 72,517.44 kg/day
SAPP 47
ENVIRONMENT

SAPP 48
Parameter Unit Domestic Industrial
No. 112 (2003)
by Ministry of
Environment
BPLHD (2010) Assumed 2030
BOD mg/L 100 60 20
COD mg/L - 150 100
TSS mg/L 100 50 50
Phosphate mg/L - - 10
Ammonia mg/L - 8 5
Total nitrogen mg/L - - 10
Sulfide mg/L - 0.3 0.3
Oil and grease mg/L 3 10 3
Phenol mg/L - 0.5 0.5
Chromium mg/L - 1.0 1.0
pH 6-9 6-9 6-9
Total COD 239.46 mg /L
Total BOD 79.83mg /L
pH < 6
Oil and grease >10
Total COD 127.89 mg /L
Total BOD 50.97 mg /L
pH 6-9
Oil and grease 10
BEFORE TREATED
AFTER TREATED
(Regional Control Agency of the Living Environment of
Indonesia, 2010)
Effluent Requirement And Currently Applicable Water Quality Standards
ENVIRONMENT

PROCESS FLOW DIAGRAM FOR WASTEWATER
TREATMENT
SAPP 49
ENVIRONMENTENVIRONMENT
Screening
Tank
Oil-water
Separator
Sequenching
Batch Reactor
Disinfection
Tank

Economic Analysis
SAPP 50

2. Commissioning Cost
SAPP 51
ECONOMICANALYSISECONOMICANALYSIS
Fixed Capital Investment (FCI)
RM 459,353,770
RM 459 million
TOTAL INVESTMENT
1. Cost of Equipments
Working Capital
RM 22,967,689
RM 23 million
(Kolmetz, 2014, Engineering Design)
(Chemical Engineering Journal, 2014)

3. Total Manufacturing Cost
SAPP 52
ECONOMICANALYSIS
TOTAL INVESTMENT
= equipment + commissioning +
manufacturing
= RM 1,536,331,665
= RM 1.54 billion
(Kolmetz, 2014, Engineering Design)

TOTAL PROFIT
1. Revenue
2. Net Annual Profit After Tax
SAPP 53
Products sold/year
= RM 2,609,617,500
= RM 2.6 billion/year
Revenue – Total manufacturing cost – 35%Tax
= RM 2,609,617,500 – RM 939,171,763 – RM 584,656,008
= RM 1,085,789,729
= RM 1 .09 billion/year
ECONOMICANALYSIS
TOTAL PROFIT
= RM 1.09 billion/year

PAYBACK PERIOD
-1,000,000,000.0
0.0
1,000,000,000.0
2,000,000,000.0
3,000,000,000.0
4,000,000,000.0
5,000,000,000.0
6,000,000,000.0
0 1 2 3 4 5 6 7 8 9 10 11 12
CumulativeDiscountedCashFlow
Year
Discounted Cash Flow Diagram
10% 40% 44%
SAPP 54
INTEREST RATE is the
amount charged,
expressed as % of principle
by a lender to a debtor for
the use of assets (cash).
PAYBACK PERIOD
for 10% Interest
Rate
= 2.8 Years

NET PRESENT VALUE (NPV)
SAPP 55
• The purpose of net present value is to help decide whether or not
new projects are financially viable and how much is an investment
worth today.
• It is the final cumulative discounted cash flow value at the end of
project life.
• Accept if NPV > The Total Investment.
• Net Present Value (NPV) at 10% Interest Rate = RM 5.5 billion

Discounted Cash Flow Rate of Return (DCFROR)
or Internal Rate of Return (IRR)
SAPP 56
 IRR is a project’s expected rate of
return on its investment.
 It is the interest rate where the
present value of the inflows equals
the present value of the outflows.
 In other words, it is the rate where a
project’s NPV = 0.
 The higher a project IRR, the more
desirable it is to undertake the
project.

Plant Safety & Layout
SAPP 57

PLANT
SAFETY
AND
LAYOUT
SOPHAZOP
ERPPLANT
LAYOUT
SAPP 58
PLANTSAFETY&LAYOUTPLANTSAFETY

SOP
OBJECTIVES
CHECKLIST
SOP ON
MAIN
EQUIPMENT
STAR-UP &
SHUT-DOWN
PROCEDURE
SAPP 59
Provide to the operator to be able to start-up and shut-down the critical equipment safely,
monitor the plant under normal operation and carry out exercises as and when problem
arises.
1. Distillation column (Utah Edu. Dept., 2008)
2. Heat exchanger (Sundex, 2013)
3. Evaporator (Fisher, 2014)
4. Reactor (Paras, 2013)
1. Perform HIRARC
2. Provide PPE
3. Provide Work Permit
4. LOTO (Sinnot, 2008)
1. Unit 100
2. Unit 200
3. Unit 300
4. Unit 400

HAZOP
OBJECTIVES
HAZOP ON MAIN
EQUIPMENT
GUIDEWORD
SAPP 60
1. To identify possible activity that probably have the potential hazard
2. To identify the possible causes of the hazard and determine the features of
design that will be affected by the incident occur
3. To appoint the action required to mitigate with the hazard
Guideword is used to indicate the deviations and the degree of deviate at the study
node (Sinnot,2008).
1. Unit 100
2. Unit 200
3. Unit 300
4. Unit 400

ERP
EMERGENCY
PROCEDURE
HIRARC
EMERGENCY
DEVICES
OBJECTIVES
SAPP 61
To identify an appropriate command structure and the important actions towards emergencies
respectively by their threats identified at the plant.
1. Health
2. Safety
3. Security
4. Environment
1. Reporting emergency
2. Responding to emergency (Shell, 2012)
1. Short wave radio
2. Audio public address system

PLANT LAYOUT
OBJECTIVES
ACCEPTABLE
PLANT LAYOUT
PLANT AREA
ZONING
SAPP 62
1. Maximum flexibility
2. Maximum accessibility
3. Minimum distance
4. Convenience
5. Maximum security
6. Efficient process flow (Sinnot, 2008)
Product plant layout advantages:
1. The flow of product will be smooth and logical in flow lines
2. Reduced material handling cost due to mechanized handling systems and straight
flow
3. Manufacturing cycle is short due to uninterrupted flow of materials
4. Unskilled workers can learn and manage the production (Bhavan, 2008)
1. Processing area
• Machine operator area (production)
2. Non-processing area
Fire protection equipment, Auxiliary/ support workstations (production
/warehouse), Supplementary workstations (laboratories), Parking areas,
Administration building
3. Minimum distance requirement (Sinnot, 2008)

SAPP 63
1. Control room
2. Tank farm
3. Designated smoking area
4. Waste water treatment plant
5. Exit/entrance point
6. Assembly point (Sinnot, 2008)
Plant Layout Video Link
PLANT LAYOUT
PLANT
FACILITY

SLIDE FYDP2

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