Designing a fruit beverages and preserves with a capacity of roughly 20 tons of materials per annum

ACKNOWLEDGMENTS I would like to express my appreciation to my supervisor Ph.D Lai Quoc Dat I want to thank him for trusting my skills, for his guidance, advice, and numerous hours spent helping me throughout this project I also extend my gratitude to all staffs and lecturers of the University of Technology, particular all staffs and lecturers at the Department of Food Technology, Faculty of Chemical Engineering, University of Technology for giving me knowledge and encouragement since the day I walked in the university My deep and sincere gratitude goes to my parents and my little brother for their support and unconditional love, without their support and love, this work would not have been possible Finally, I would like to thank my graduate student colleagues in the Department of Food Technology for their assistance and friendship SUPERVISOR’S COMMENTS ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………….REVIEWER’S COMMENTS ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………… INTRODUCTION In recent years, especially from the beginning of the 2000s, Vietnamese production areas of fruits and vegetables have developed rapidly and got more and more specialized According to report on Vietnamese vegetable and fruit sector, at present, there are hundreds of vegetable and fruit processing factories and units of small and medium scale, but only about one fifths of which are for processing fruits Vietnam’s fruit production industry is becoming more developed and westernized The growth of modern retail formats such as supermarkets presents opportunities for Vietnamese consumers to be more exposed to high quality and trendy products such as not from concentrate fruit juice and fruit jam, jelly, … , which are not generally stocked by traditional stores The average Vietnamese diet is also changing to include more fruit and vegetable products Due to a combination of westernization and rising health consciousness, both soft drinks and healthy alternatives, such as fruit and vegetable juices, are expected to grow This thesis is about designing a fruit beverages and preserves with a capacity of roughly 20 tons of materials per annum A series of preliminary studies have been taken on all aspects and conditions to determine a final fruit plant design These studies would describe the context of the plant design and be developed as follows: Chapter 1: Socio-economic and technical context for plant design: - Information and details as needed to determine the product demand level as well as production volume according to specifications of the products evaluated - Availability and location of raw materials, which will have a great influence on the food plant location and corresponding food processing systems Chapter 2: Materials and products - Definition and specification of the raw materials - Characterization of products (as broad as possible), including technical, legal, and commercial quality of each food product manufactured Chapter 3: Process design: - Description of process technology and engineering alternatives, analyzing their influence on product quality Chapter 4: Mass balance Capacity and production planning Chapter 5: Machinery and equipment - Specifications of food processing equipment and necessary auxiliary equipment Chapter 6: Energy balances Requirements of auxiliary systems: - Energy handling systems (steam and refrigeration systems, and electrical installations) Chapter 7: Plant building design - Hygienic design specifications, concerning food processing equipment and auxiliary equipment in contact with foods (materials handling) - Structures and civil work specifications for outer and interior building - Facilities layout Chapter 8: Electrical System Chapter 9: Water and waste system Chapter 10: Organization and management Chapter 11: Plant Economic - TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES Figure Pineapple line process block diagram Figure Mango line process block diagram Figure 3 Orange line process block diagram Figure Gantt chart of working schedule in orange line Figure Gantt chart for mango line Figure Gantt chart for pineapple line Figure 10 Organizational Structure CHAPTER 1: SOCIO-ECONOMIC AND TECHNICAL CONTEXT 1.1 Socio-economic context Fruit production in Vietnam Fruit and vegetable production play an important role on the agriculture of many countries in the world Fruit and vegetable sector is also an important production sector of Vietnamese agriculture Vietnam enjoys numerous favorable conditions for fruit and vegetable production in which climate and ground are suitable with tropical, subtropical fruits and some temperate fruits Vietnamese fruit and vegetable production in recent years has marked significant progress in both terms of scale and product structure Various kinds of special vegetables and fruits with high quality have been developed and brought high yield thanks to the sector’s application of advanced cultivation techniques Vietnamese fruit and vegetable sector has gained satisfactory achievements in domestic consumption and export Plentiful processed products such as canned and condensed fruits have been highly appreciated by domestic and oversea customers Especially, some new products such as puree, frozen vegetables and fruits have been consumed in America and Japan According to the latest statistics from the General Department of Customs, from 2007 to 2012, Vietnam’s vegetables exports grew steadily with the average growth rate of 25 percent per year and in the first months of 2013, Vietnam’s vegetables and fruit exports continued to grow with total export turnover of 620.6 million US, increased by 40 percent year by year Thanks to the diversified ecology, there are more than 30 different kinds of fruittrees in Vietnam, in which 27 kinds have commercial value, and grown on big land area, such as orange, mandarin orange, pomelo, pineapple, mango, lemon, jack-fruit, litchi, etc Among them, orange and pineapple make up a great density in the total area of fruit plantation, satisfy domestic consumption and export demands Taking advantage of abundant sources of raw materials of high export value, many fruit processing enterprises in the country have availed themselves of every opportunity to invest in technology and human resources to process and export fruit 10 Model: GBC – 200 Brand: FAVITEC, Vietnam Capacity: 360 kW/kVA Voltage: 400/230 V 103 CHAPTER 10: ORGANIZATION AND MANAGEMENT 10.1 Organizational Structure 104 105 Administration Department Figure 10 Organizational Structure Operational Department Board of six directors including one overall manager, one deputy manager, and Marketing Finance Distribution Human Resources Technology four supervisors Each department is headed by oneDepartment manager and one executive officer Quality control Depar Marketing Department Planning & Performance Board of Directors 10.2 Typical direct labor requirements Table 10 Direct Labor Requirements in Manufacturing Plant Equipment Washer Worker requirement/ shift Worker requirement/ day Boiler Manufacturing plant 12 Inspector Conveyor Extractor Finisher Centrifuge Separator De-bittering Mixing 12 Electricity QA Water 12 Warehouse De-aerator Homogenizer Pasteurizer Filling and packing Jam mixing Jam evaporator Jam filling and packing Single-effect evaporator 35 105 Total R&D 3 Others Table 10.1: Direct Labor Requirements in Technology Department 106 Worker requirement/ shift Worker requirement/ day Material Warehouse Product Warehouse Miscellaneous warehouse Boiler house Maintenance Electricity Water supply Waste and waste water treatment CIP system Utility room Total 22 66 Technology Department 10.3 Typical Indirect Labor Requirement Table 10.2: Indirect Labor Requirements in Administration Department: Administration Department Officers Requirement Finance Human Resource Planning and Performance Administration receptionist Security Personnel Total 17 Table 10.3: Indirect Labor Requirements in Marketing Department: Marketing Department Officers Requirement Marketing Sale and Distribution Total Table 10.4: Indirect Labor Requirements in Operational Department: Operational Department Officers Requirement Manufacturing plant Total Table 10.5: Indirect Labor Requirements in Quality Control Department: 107 Quality Control Officers Requirement R&D Quality Assurance Total CHAPTER 11: PLANT ECONOMIC 11.1 Capital Investment Cost The total capital CT invested in a processing plant consists of the following: - The fixed capital CF or fixed investment, needed to supply the necessary plant facilities - The working capital CW in an industrial plant consists of the total amount of money invested in raw materials and supplies carried in stock, finished and semi-finished products, accounts receivable and payable, and cash kept on hand 59 Fixed capital cost: The fixed capital CF includes the cost of the purchased equipment, installation, piping, instrumentation and control, electrical, buildings, site improvement, land, offsite facilities, engineering, start-up, contractors’ fee, and contingency Main equipment cost: 108 Table 11.1: Equipment Cost Estimation Equipment Quantity Price/Unit, USD Cost Washing 22,800 22,800 Pineapple Extractor 14,800 14,800 Orange extractor 14,500 14,500 Mango pulper 13,700 13,700 Inspection Conveyor 15,000 15,000 Paddle screener 26,500 53,000 Centrifuge 35,000 35,000 Bucket Elevator 5,800 17,400 Storage tank 1500 liters 6,500 26,000 De-aerator 19,000 19,000 Homogenizer 45,000 45,000 Tubular heat exchanger 30,800 61,600 Scraped surface heat exchanger 36,000 72,000 Single effect evaporator 98,000 98,000 Plate heat exchange evaporator 75,000 75,000 Ion exchange system 1000 L/h 5,000 5,000 Cooling tunnel 10,000 10,000 Aseptic filling and packing system 60,000 60,000 Glass jars filling and packing system 30,000 30,000 Boiler 16,000 16,000 10,000 3000 15,000 2300 10,000 15,000 15,000 6,900 750,700 Refrigerator compressor Pump Aseptic Bag Fillers Buffer tank Total main equipment cost Estimation Total main equipment cost estimation: Ceq = 750,700 USD = 15,389,350,000 VND Equipment installation cost: Assuming that this component is dealt with separately, provision must be included for installation of imported equipment The cost of installation will often include payment of qualified expatriate personnel When no other values are available, 10% of total equipment cost may be used in order to estimate installation cost Equipment installation cost: Cins = 10%.Ceq = 75,700 USD = 1,538,935,000 VND Building construction and installation cost: 109 Table 11.2: Building construction cost estimation Construction items Area, m2 Unit price, USD Cost, USD Manufacturing plant 2,124 1,650,000 3,504,600,000 Auxiliary construction 1,884 2,675,000 5,039,700,000 540 2,700,000 1,458,000,000 1,400 412,000 5,768,000,000 656,725,000 656,725,000 Boundary and gate Internal path Electrical system Elevated reservoir and pumping station 54 4,680,000 252,720,000 Transformer station 36 1,250,000 45,000,000 Wastewater treatment system 180 3,517,000 633,060,000 Total construction cost CC 17,357,805,000 Table 11.3: Fixed capital cost estimation Item Cost factor Main equipment cost Cost of item (VND) 15,389,350,000 Equipment installation cost 0.1 1,538,935,000 Process piping 0.05 769,467,500 Instrumentation 0.03 461,680,500 Buildings 17,357,805,000 Total direct cost 35,517,238,000 Engineering 0.1 1,538,935,000 Contractors fee Contingencies 0.1 0.1 1,538,935,000 1,538,935,000 60 Total indirect Cost 4,616,805,000 Total Fixed capital cost CF 40,134,043,000 Working capital cost Working Capital is mainly made up of: 110 - Inventory (raw material, semi-finished products, stock of spare-parts, operational materials) - Cash - Credit to buyers, outstanding bills - Credit from suppliers (when considering this section, bear in mind that its value must be deducted from the rest of the Working Capital) The working capital cost is usually estimated by taking it as 20% of fixed capital cost: CW = 20%.CF = 20%.40, 134,043,000 = 8,026,808,000 VND Total capital cost investment CT = CF + CW = 48,160,851,600 VND 11.2 Manufacturing costs estimation Manufacturing costs are the expenses necessary to maintain a plant, processing line or equipment in operating period In a healthy company the difference between income (from sales and other sources) and production costs indicates the gross profit This means that the economic fate of a company is linked to and the production costs of the goods sold Whereas income, particularly income from sales, is linked to the marketing sector of a company, production costs are closely related to the technical sector Production costs can be divided into two large categories: variable or direct costs, which are proportional to production, and fixed costs, which are independent of production The annual manufacturing cost C M required to operate a processing plant consists of: - The direct manufacturing cost, also called operating cost, which includes a part analogous to fixed capital cost C MF, called “fixed” and a part analogous to production capacity CMV, called “variable” - The indirect manufacturing cost Cover, also called overheads, which includes all the enterprise allocated costs 111 MANU Figure 11 Compositon of manufacturing cost 61 Variable cost estimation Raw material Table 11.4: Raw material costs 112 Raw material Annual purchasing Unit price Annual cost Pineapple 8,676,864 3,500 30,369,024,000 Orange 3,104,124 8,000 24,832,992,000 Sugar 4,269,924 12,000 51,239,088,000 Pectin 194,220 205,000 39,815,100,000 Citric acid 35,400 1,500 53,100,000 Mango 288,306 14,000 4,036,284,000 Total material cost 150,345,588,000 Packaging material Table 11.5: Packaging material costs Packaging material Quantities Unit price 330 ml Tetra Pak package 4,800,000 1,500 7,200,000,000 1L Tetra Pak package 2,400,000 2,200 5,280,000,000 2,300 18,377,000,000 30,857,000,000 375 g glass jars 7,990,000 Total packaging material cost Annual cost Labor Table 11.6: Labor costs Position Quantity Average salary/month Board of directors 30,000,000 180,000,000 Manager 15,000,000 75,000,000 Executive officer 16 10,000,000 160,000,000 Officer 21 7,000,000 147,000,000 Worker 171 5,000,000 855,000,000 Total labor cost Labor cost 1,417,000,000 Utilities Table 11.7: Utilities costs Utilities Electricity Value 1,330,772 kWh Unit price Cost 2,500 3,326,930,000 113 72,000 m3 Water 9,000 648,000,000 FO oil 2,860,482 m 15,000 42,907,230,000 Waste treatment 5,012 tons 270,000 1,353,240,000 Total utilities cost 48,235,400,000  Variable manufacturing costs: CMV = 230,854,988,000 VND 62 Fixed manufacturing cost Fixed manufacturing costs can be estimated as 15% of fixed capital investment: CMF = 0.15 × CF = 6,020,106,450 VND 63 Indirect manufacturing cost Fixed manufacturing costs can be estimated as 10% of fixed capital investment: CMO = 0.1 × CF = 4,013,404,300 VND Therefore, the total manufacturing cost is CM = CMF + CMV + CMO = 240,888,498,750 VND 11.3 Sales income Table 11.8: Annual average sales income Product Pineapple Juice Jam Mango Nectar Jam Orange Juice Packaging material Annual capacity Average unit price Sales income 330 ml Tetra Pak package 2,880,000 15,000 43,200,000,000 1L Tetra Pak package 1,440,000 45,000 64,800,000,000 375 g glass jars 6,390,000 50,000 319,500,000,000 330 ml Tetra Pak package 960,000.00 19,000 18,240,000,000 1L Tetra Pak package 480,000.00 47,000 22,560,000,000 375 g glass jars 1,600,000.00 52,000 83,200,000,000 330 ml Tetra Pak package 960,000.00 23,000 22,080,000,000 1L Tetra Pak package 480,000.00 58,000 27,840,000,000 Total sales income 601,420,000,000 114 11.4 Cash flow analysis 64 Construction period Construction period: years The total capital invested CT is covered partially by the investors C O and the remainder CL is borrowed from a bank loaner It is assumed that 30% of the finance for the project is expected from the investor while the rest 70% is obtained from long term bank loan CT = CO + CL CO = 14,448,255,480 VND CL = 33,712,596,120 VND 115 REFERENCES Antonio López-Gómez, Gustavo V Barbosa-Cánovas (2005) Food Plant Design CRC Press Berk, Z (2009) Food Process Engineering and Technology Israel: Elsevier Inc Brennan, J G (2006) Food Processing Handbook WILEY-VCH Verlag GmbH & Co KGaA, Weinheim Enrique Rotstein, R Paul Singh, and Kenneth J Valentas (1997) Handbook of food engineering practice CRC Press LLC Enrique Rotstein, R Paul Singh, and Kenneth J Valentas (1997) Handbook of food engineering practice CRC Press LLC Fellows, P (2000) FOOD PROCESSING TECHNOLOGY: Principles and Practice Woodhead Publishing Limited Gustavo F Gutiérrez-López, Gustavo V Barbosa-Cánovas, Jorge WeltiChanes, Efrén Parada-Arias (2008) Food Engineering: Integrated Approaches Springer Heldman, D R (2011) Food Preservation Process Design Mason, ohio: Elsevier Inc J Scott Smith and Y H Hui (2004) Food Processing Principles and Applications Blackwell Publishing 10 Lê Văn Việt Mẫn, Lại Quốc Đạt, Nguyễn Thị Hiền, Tôn Nữ Minh Nguyệt, Trần Thị Thu Trà (2011) Công nghệ chế biến thực phẩm Hồ Chí Minh 116 11 Lozano, J E (2006) FRUIT MANUFACTURING Bahia Blanca, Argentina: Springer Science & Business Media 12 Robberts, T (2002) Food Plant Engineering Systems CRC Press LLC 13 Sara Mortimore and Carol Wallace (2001) FOOD INDUSTRY BRIEFING: HACCP Blackwell Science 14 Tamime, D A (2008) Cleaning-in-Place Dairy, Food and Beverage Operations Ayr, UK: Blackwell Publishing 15 Y H Hui, J´ozsef Barta, M Pilar Cano, Todd W Gusek, Jiwan S Sidhu, and Nirmal K Sinha (2006) Handbook of Fruits and Fruit Processing Blackwell Publishing 16 ZACHARIAS B MAROULIS, GEORGE D SARAVACOS (2008) FOOD PLANT ECONOMICS Taylor & Francis Group, LLC 17 Zacharias B.Maroulis, George D.Saravacos (2003) FOOD PROCESS DESIGN Marcel Dekker,Inc 117 ... thousand tons Mango: currently, there are many varieties of mango planting in Vietnam; however, the variety that has high quality and is grown in concentrated area is Hoa Loc sweet mango This mango is... may be added Mango nectar is defined as the dilution of pure, single strength mango pulp with sugar, water or preservatives to make a beverage that has a certain percentage of pure mango pulp According... products Ripe mangoes are processed as canned and frozen slices, purée, juices, nectar, jam, jelly and various dried products Mangoes purchasing requirements are based on Codex standard for mangoes: