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GOAL
1. Market potential in Malaysia and potential export markets
2. Raw material available for paper industry in Malaysia
3. Competitiveness of the industry
4. Utilisation of global and proprietary technologies
5. Management practices
OBJECTIVE
There are several objective of our
company. Some of them include that our
company to be one of the long-term
market forecast for Malaysia. Our next
objective is that to be able to penetrate
foreign markets and to increase the
quality of production of our products.
Our next objective is the availability of
fibre raw material and possibilities to
increase the availability in the long term
and the final objective of our company is
to improve management practices.
MANUFACTURING
STRATEGIES
COMPETITIVE
CAPABILITIES
INVESTMENTS MADE IN
STRATEGIC DECISION AREA
• COST
• QUALITY
• DELIVERY
PERFORMANCE
• FLEXIBILITY
• PROCESS
TECHNOLOGY
• CAPACITY, FACILITIES,
AND VERTICAL
INTEGRATION
• QUALITY SYSTEM
• PRODUCTION &
INVENTORY CONTROL
SYSTEMS
• WORKFORCE
MANAGEMENT
• MANUFACTURING
ORGANIZATION
The method of making paper is essentially a
simple one—mix up vegetable fibers, and cooks
them in hot water until the fibers are soft but
not dissolved. The hot water also contains a
base chemical such as lye, which softens the
fibers as they are cooking. Then, pass a screen-
like material through the mixture, let the water
drip off and/or evaporate, and then squeeze or
blot out additional water. A layer of paper is left
behind. Essential to the process are the fibers,
which are never totally destroyed, and, when
mixed and softened, form an interlaced pattern
within the paper itself. Modern papermaking
methods, although significantly more
complicated than the older ways, are
developmental improvements rather than
entirely new methods of making paper.
ECONOMIC ADVANTAGE
The advantage of being involve in the paper business include that the
raw material of paper are cheap material which are easily available. It is
also can be cut easily into desired shaped and paper is not harmful as a
waste product.
The disadvantage is that paper is very flammable, it is easily damaged
by water and insects. It also not strong enough to be use in heavy duty
work
FARITH HAZIQ
BIN MUHAMMAD
Director
MUHAMMAD HABIBULLAH
BIN BADULHISHAM
Head Of Finance
MUHAMMAD AIMAN
BIN ISHAK
General Manager
MUHAMMAD ALIEF BIN
OTHMAN
Head Of Engineer

PRODUCT DESIGN
MANUFACTURING PROCESS DESIGN
1) Making pulp
Several processes are commonly used to convert logs to wood pulp. In
the mechanical process, logs are first tumbled in drums to remove the
bark. The logs are then sent to grinders, which break the wood down
into pulp by pressing it between huge revolving slabs. The pulp is
filtered to remove foreign objects. In the chemical process, wood chips
from de-barked logs are cooked in a chemical solution. This is done in
huge vats called digesters. The chips are fed into the digester, and then
boiled at high pressure in a solution of sodium hydroxide and sodium
sulfide. The chips dissolve into pulp in the solution. Next the pulp is
sent through filters. Bleach may be added at this stage, or colorings.
The pulp is sent to the paper plant.
CONTINUE
2) Beating
The pulp is next put through a pounding and squeezing process called,
appropriately enough, beating. Inside a large tub, the pulp is subjected
to the effect of machine beaters. At this point, various filler materials
can be added such as chalks, clays, or chemicals such as titanium
oxide. These additives will influence the opacity and other qualities of
the final product. Sizings are also added at this point. Sizing affects the
way the paper will react with various inks. Without any sizing at all, a
paper will be too absorbent for most uses except as a desk blotter. A
sizing such as starch makes the paper resistant to water-based ink
(inks actually sit on top of a sheet of paper, rather than sinking in). A
variety of sizing’s, generally rosins and gums, is available depending on
the eventual use of the paper. Paper that will receive a printed design,
such as gift wrapping, requires a particular formula of sizing that will
make the paper accept the printing properly.
CONTINUE
3) Pulp to paper
In order to finally turn the pulp into paper, the pulp is fed or pumped
into giant, automated machines. One common type is called the
Fourdrinier machine, which was invented in England in 1807. Pulp is fed
into the Fourdrinier machine on a moving belt of fine mesh screening.
The pulp is squeezed through a series of rollers, while suction devices
below the belt drain off water. If the paper is to receive a water-mark, a
device called a dandy moves across the sheet of pulp and presses a
design into it. The paper then moves onto the press section of the
machine, where it is pressed between rollers of wool felt. The paper
then passes over a series of steam-heated cylinders to remove the
remaining water. A large machine may have from 40 to 70 drying
cylinders.
CONTINUE
4) Finishing
Finally, the dried paper is wound onto large reels, where it will be
further processed depending on its ultimate use. Paper is smoothed
and compacted further by passing through metal rollers called
calendars. A particular finish, whether soft and dull or hard and shiny,
can be imparted by the calendars.The paper may be further finished by
passing through a vat of sizing material. It may also receive a coating,
which is either brushed on or rolled on. Coating adds chemicals or
pigments to the paper's surface, supplementing the sizings and fillers
from earlier in the process. Fine clay is often used as a coating. The
paper may next be supercalendered, that is, run through extremely
smooth calendar rollers, for a final time. Then the paper is cut to the
desired size.
EQUIPMENT MAKING PAPER
F O U R D R I N I E R M A C H I N E
MANUFACTURING PROCESS
a) Flow Diagram
CONTINUE
b) Process Diagram
STEP PROCESS
TYPES OF MATERIAL HANDLING SYSTEM
NEEDED
NUMBER OF MATERIAL HANDLING MACHINE
NEEDED
1.Conveyors – 20units
2. Cranes – 30units
3. Industrial Trucks – 20 units
4. AGV – 20units
5. Robots – 30 units
5. AS/RS – 15units
259.125
m
162.5m
2100m
m
RECOVERY
2800m
m
1300m
m
600m
m
1400m
m
DRYERWET END &
PRESS
SECTION
CALENDER
SECTION
52.5m
40
m
MANUFACTURING LEAD TIME
MLT = (setup time + batch size(operation time) + non-operational time) n
= ( 1hr + 2739726.027(8×10-6) + 1hr)(1)
= 23.91 hours
NUMBER OF WORKER
Qf= pq
(5x200000) =1000000ton/year
Total no of part produced
Mpf=pqmp=(5)(200000)(1)
1000000tonnes/years
Mof=(pqmq)mo=(1×109)(4)
4×109 operation/year
No of worker needed=Mof(0.5/60)
(33.33×106)/8760= 3805.17
3806 worker
CAPITAL & MATERIAL COST
a) Capital cost: -Machine Paper = RM 160,360.00 /machine
-Power Plant = RM 128,284.00 /machine
-Boiler = RM160, 360.00 /machine
-Clarifier = RM120, 432.00 /machine
Total: RM 569 436.00
b) Material Cost: -RM 2,000,000 /yr
c) Direct Maintaining cost/month -RM 100,000
PRODUCTION LABOUR COST
Direct labour cost : (Number of paper produce per day) (
No. of working hour required per day) ( Price of Labour per hour)
: (1000000/250)(24)(10) = RM
960 000
Direct labour rate ,DLC : RM 10/hr
Factory overhead cost , FOHC : RM 250 000
Applicable factory overhead rate ,FOHCm : RM 250 000/960 000 =
0.2604
Corporate overhead cost ,COHC : RM 150 000
Applicable factory overhead rate ,COHCm : RM 150 000/ 960 000= 0.15625
Capital investment in machine : RM 100 000
Service life of machine : 6 years
Rate of return : 20%
Salvage value : 0
CONTINUE
Calculation of machine labour:
Recovery rate:
= Capital cost x [ 0.2(1+0.2) 6]
[((1+0.2)6) -1]
= 569 436.00 x 0.26060
= RM 148395.0216
Labour machine rate = 148395.0216/ ( 365 days x 24hr /day) = 16.94
PRODUCTION LABOUR COST PER HOUR
: ( Direct labour rate/ hr)(3806workers) (1+FOHCm) +(Direct machine
rate/hr)(7 machine)(1+COHCm)
: (10)(3806) [1+0.2604] + (16.94)(7) (1+0.15625]
: RM 38,198.36 /hr
TOTAL MATERIAL COST PER HOUR
: {(Total material cost per year)/ (Total weight per year)} x (no. of weight
per hour )
: {(RM 2000000/ 1000000)} × 114155.25
: RM 228,310.5 / hr
TOTAL PRODUCTION COST
: RM 38198.36 /hr + RM 228,310.5 / hr
: RM 266,508.86/ hr
COST SELLING
UNIT PRODUCTION COST = (total production cost / hr)/ (total unit kg/
hour)
= (266,508.86) / (114.155.25)
= RM 2.33
PROFIT PER KG = RM 1.66
UNIT SELLING PRICE = RM 3.99
PROFIT MARGIN PER KG = [(1.66)/(3.99)] X100%
= 41.6%
The pulp and paper industry is a very large industry nowadays.
Although the industry is criticized by environmental groups like Natural
Resources Defense Council for unsustainable deforestation and
clearcuting of old-growth forest, it is still one of the most important
industry because paper is used and needed in our everyday life. So in
order to overcome the problem of lacking of sources , we need to come
out with new solutions such as using more recycled material and many
more .
Paper mill factory final project
Paper mill factory final project

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Paper mill factory final project

  • 1.
  • 2.
  • 3. GOAL 1. Market potential in Malaysia and potential export markets 2. Raw material available for paper industry in Malaysia 3. Competitiveness of the industry 4. Utilisation of global and proprietary technologies 5. Management practices
  • 4. OBJECTIVE There are several objective of our company. Some of them include that our company to be one of the long-term market forecast for Malaysia. Our next objective is that to be able to penetrate foreign markets and to increase the quality of production of our products. Our next objective is the availability of fibre raw material and possibilities to increase the availability in the long term and the final objective of our company is to improve management practices.
  • 5.
  • 6. MANUFACTURING STRATEGIES COMPETITIVE CAPABILITIES INVESTMENTS MADE IN STRATEGIC DECISION AREA • COST • QUALITY • DELIVERY PERFORMANCE • FLEXIBILITY • PROCESS TECHNOLOGY • CAPACITY, FACILITIES, AND VERTICAL INTEGRATION • QUALITY SYSTEM • PRODUCTION & INVENTORY CONTROL SYSTEMS • WORKFORCE MANAGEMENT • MANUFACTURING ORGANIZATION
  • 7.
  • 8. The method of making paper is essentially a simple one—mix up vegetable fibers, and cooks them in hot water until the fibers are soft but not dissolved. The hot water also contains a base chemical such as lye, which softens the fibers as they are cooking. Then, pass a screen- like material through the mixture, let the water drip off and/or evaporate, and then squeeze or blot out additional water. A layer of paper is left behind. Essential to the process are the fibers, which are never totally destroyed, and, when mixed and softened, form an interlaced pattern within the paper itself. Modern papermaking methods, although significantly more complicated than the older ways, are developmental improvements rather than entirely new methods of making paper.
  • 9. ECONOMIC ADVANTAGE The advantage of being involve in the paper business include that the raw material of paper are cheap material which are easily available. It is also can be cut easily into desired shaped and paper is not harmful as a waste product. The disadvantage is that paper is very flammable, it is easily damaged by water and insects. It also not strong enough to be use in heavy duty work
  • 10.
  • 11. FARITH HAZIQ BIN MUHAMMAD Director MUHAMMAD HABIBULLAH BIN BADULHISHAM Head Of Finance MUHAMMAD AIMAN BIN ISHAK General Manager MUHAMMAD ALIEF BIN OTHMAN Head Of Engineer 
  • 12.
  • 14. MANUFACTURING PROCESS DESIGN 1) Making pulp Several processes are commonly used to convert logs to wood pulp. In the mechanical process, logs are first tumbled in drums to remove the bark. The logs are then sent to grinders, which break the wood down into pulp by pressing it between huge revolving slabs. The pulp is filtered to remove foreign objects. In the chemical process, wood chips from de-barked logs are cooked in a chemical solution. This is done in huge vats called digesters. The chips are fed into the digester, and then boiled at high pressure in a solution of sodium hydroxide and sodium sulfide. The chips dissolve into pulp in the solution. Next the pulp is sent through filters. Bleach may be added at this stage, or colorings. The pulp is sent to the paper plant.
  • 15. CONTINUE 2) Beating The pulp is next put through a pounding and squeezing process called, appropriately enough, beating. Inside a large tub, the pulp is subjected to the effect of machine beaters. At this point, various filler materials can be added such as chalks, clays, or chemicals such as titanium oxide. These additives will influence the opacity and other qualities of the final product. Sizings are also added at this point. Sizing affects the way the paper will react with various inks. Without any sizing at all, a paper will be too absorbent for most uses except as a desk blotter. A sizing such as starch makes the paper resistant to water-based ink (inks actually sit on top of a sheet of paper, rather than sinking in). A variety of sizing’s, generally rosins and gums, is available depending on the eventual use of the paper. Paper that will receive a printed design, such as gift wrapping, requires a particular formula of sizing that will make the paper accept the printing properly.
  • 16. CONTINUE 3) Pulp to paper In order to finally turn the pulp into paper, the pulp is fed or pumped into giant, automated machines. One common type is called the Fourdrinier machine, which was invented in England in 1807. Pulp is fed into the Fourdrinier machine on a moving belt of fine mesh screening. The pulp is squeezed through a series of rollers, while suction devices below the belt drain off water. If the paper is to receive a water-mark, a device called a dandy moves across the sheet of pulp and presses a design into it. The paper then moves onto the press section of the machine, where it is pressed between rollers of wool felt. The paper then passes over a series of steam-heated cylinders to remove the remaining water. A large machine may have from 40 to 70 drying cylinders.
  • 17. CONTINUE 4) Finishing Finally, the dried paper is wound onto large reels, where it will be further processed depending on its ultimate use. Paper is smoothed and compacted further by passing through metal rollers called calendars. A particular finish, whether soft and dull or hard and shiny, can be imparted by the calendars.The paper may be further finished by passing through a vat of sizing material. It may also receive a coating, which is either brushed on or rolled on. Coating adds chemicals or pigments to the paper's surface, supplementing the sizings and fillers from earlier in the process. Fine clay is often used as a coating. The paper may next be supercalendered, that is, run through extremely smooth calendar rollers, for a final time. Then the paper is cut to the desired size.
  • 18. EQUIPMENT MAKING PAPER F O U R D R I N I E R M A C H I N E
  • 22.
  • 23. TYPES OF MATERIAL HANDLING SYSTEM NEEDED
  • 24. NUMBER OF MATERIAL HANDLING MACHINE NEEDED 1.Conveyors – 20units 2. Cranes – 30units 3. Industrial Trucks – 20 units 4. AGV – 20units 5. Robots – 30 units 5. AS/RS – 15units
  • 25.
  • 28.
  • 30.
  • 31. MANUFACTURING LEAD TIME MLT = (setup time + batch size(operation time) + non-operational time) n = ( 1hr + 2739726.027(8×10-6) + 1hr)(1) = 23.91 hours
  • 32. NUMBER OF WORKER Qf= pq (5x200000) =1000000ton/year Total no of part produced Mpf=pqmp=(5)(200000)(1) 1000000tonnes/years Mof=(pqmq)mo=(1×109)(4) 4×109 operation/year No of worker needed=Mof(0.5/60) (33.33×106)/8760= 3805.17 3806 worker
  • 33.
  • 34. CAPITAL & MATERIAL COST a) Capital cost: -Machine Paper = RM 160,360.00 /machine -Power Plant = RM 128,284.00 /machine -Boiler = RM160, 360.00 /machine -Clarifier = RM120, 432.00 /machine Total: RM 569 436.00 b) Material Cost: -RM 2,000,000 /yr c) Direct Maintaining cost/month -RM 100,000
  • 35. PRODUCTION LABOUR COST Direct labour cost : (Number of paper produce per day) ( No. of working hour required per day) ( Price of Labour per hour) : (1000000/250)(24)(10) = RM 960 000 Direct labour rate ,DLC : RM 10/hr Factory overhead cost , FOHC : RM 250 000 Applicable factory overhead rate ,FOHCm : RM 250 000/960 000 = 0.2604 Corporate overhead cost ,COHC : RM 150 000 Applicable factory overhead rate ,COHCm : RM 150 000/ 960 000= 0.15625 Capital investment in machine : RM 100 000 Service life of machine : 6 years Rate of return : 20% Salvage value : 0
  • 36. CONTINUE Calculation of machine labour: Recovery rate: = Capital cost x [ 0.2(1+0.2) 6] [((1+0.2)6) -1] = 569 436.00 x 0.26060 = RM 148395.0216 Labour machine rate = 148395.0216/ ( 365 days x 24hr /day) = 16.94
  • 37. PRODUCTION LABOUR COST PER HOUR : ( Direct labour rate/ hr)(3806workers) (1+FOHCm) +(Direct machine rate/hr)(7 machine)(1+COHCm) : (10)(3806) [1+0.2604] + (16.94)(7) (1+0.15625] : RM 38,198.36 /hr
  • 38. TOTAL MATERIAL COST PER HOUR : {(Total material cost per year)/ (Total weight per year)} x (no. of weight per hour ) : {(RM 2000000/ 1000000)} × 114155.25 : RM 228,310.5 / hr
  • 39. TOTAL PRODUCTION COST : RM 38198.36 /hr + RM 228,310.5 / hr : RM 266,508.86/ hr
  • 40.
  • 41. COST SELLING UNIT PRODUCTION COST = (total production cost / hr)/ (total unit kg/ hour) = (266,508.86) / (114.155.25) = RM 2.33 PROFIT PER KG = RM 1.66 UNIT SELLING PRICE = RM 3.99 PROFIT MARGIN PER KG = [(1.66)/(3.99)] X100% = 41.6%
  • 42.
  • 43. The pulp and paper industry is a very large industry nowadays. Although the industry is criticized by environmental groups like Natural Resources Defense Council for unsustainable deforestation and clearcuting of old-growth forest, it is still one of the most important industry because paper is used and needed in our everyday life. So in order to overcome the problem of lacking of sources , we need to come out with new solutions such as using more recycled material and many more .