POM Assignment G.D

7/28/2019 POM Assignment G.D.

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PRODUCTION AND OPERATION MANAGEMENT

Subject Name

Production and operation management

Topic/Working

We were assigned a task to identify the process of product its problems and suggest solutions for any company or group of companies

Submitted To Prof. Asad Butt

Submitted By Ghulam Dastgeer and group fellows

Group Detail

Ghulam Dastgeer (MCE12150)

Imtiaz Noshad (MCE12127)

Mubashar Sarwar (MCE12106)

Mubeen abdul Rehman ( MCE12151)

Sehrish Qaiser (MCE12138)

Sumara Ibrahim (MCE12160)

Nauman Ahmed (BBA7138)

FINAL TERM PROJECT

SUPERIOR GROUP OF COLLEGES

Table of Contents

Prepared by Ghulam Dastgeer and group fellows1


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Sr.#

1

2

3

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5

5.15.2

66.16.26.3

6.46.56.6 6.7

7

8

9

10

Topic

Organogram

Acknowledgements

Executive summary (1 page summary)Introduction (maximum two pages)

Situation analysis

PESTLE analysisSWOT analysis

Value Chain Firm infrastructure Human Resource Management

Technological development Procurement Inbound LogisticsOperationsOutbound Logistic

Analysis of various Marketing Activities

Compitetors

Process and Problems

Conclusion and Recomendations

Page #

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4

5

6

7

79

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14141414

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ORGANOGRAM



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ACKNOWLEDGEMENT

In the name of Allah the most beneficial and merciful who enable us to reach the Zenith of

educational level of our life through his mercy we are thankful to almighty Allah for hiscountless blessings. He is the one who gave us that much perseverance to complete of our Master in commerce Degree.

We gratefully acknowledge to all the professor and teacher who offered valuable guidance andshare their intangible assets, their knowledge and experiences, with us during our studies atinstitute Superior Group of Colleges, Lahore.

We wish to express our deep thanks to our M.COM Final Project advisor Mr. Asad Butt for his dynamic supervision and guidance vast experience and the combination of personal and

private way of working contributed to the development and refinement of this project. Hisinfluential ideas and vast experience of financial corporate sectors as well as the way of encouraging and appreciating encourage me to complete this report successfully. Without hissincere cooperation the work might not have been a success.

Thanks are due to all person of WOM especially Mr. Babar Munir (Sale coordinate Officer)and Mr. Muhammad Abid (Sale Distribution Executive) who gave us their time and energywho help us gathering vital information who accomplishes this task successfully.

We are also thankful to all of our friends who helped us in the completion of our final project.

The friends include Faisal Iqbal, Umer Sharif Butt, Mutahir Bilial. Finally, we thank to our family for their love and cooperation in completing our studies

Ghulam Dastgeer

Imtiaz Noshad

Mubeen abdul Rehman

Nauman AhmedMubasher Sarwer

Sumera Ibrahim

Sehrish Qaisar



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EXECUTIVE SUMMERY

We were assigned a task to choose any company local or multination (manufacturing or services) then identify their processes, problems, and then suggest solutions for one product.For this purpose we selected seasons the season further have two businesses one is known aswalli oil mills (WOM) in which they deal in Canola Oil, Sunflower Oil, Corn Oil and PunjabGhee and the other is season menu in which they deal ready to eat items our projects workingis based on (WOM) for this purpose we selected the product name as Season Canola Oil wevisited the head office of (WOM) situated in 171,Shadman-II, Lahore, Punjab, Pakistan wherewe meet with Mr. Babar Munir (Sale coordinate Officer) we have good experience to meetwith him he is very honest and good looking personality he explained and elaborate all our queries in very good way after having meeting with him we started our working during our working we have explained the introduction of the company then situation analysis is donewhich includes PESTLE and SWOT analysis then we have discussed the process of the canola

oil in which we discussed the followings

Supplier network

Input process

Production process

Output

Distribution

Customer network

And then we discussed the problems in the process and further provided some suitablesolutions for the improvement and at the end we write down the conclusion.

In the whole project we put our efforts together as a group to fulfill the requirements our beloved teacher Mr. Asad Butt we have completed the project to our level best and hope sothat our teacher will feel proud on our working which we have presented to him



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Introduction

Wali Oil Mills Limited (WOM) was incorporated as a private limited company on February

02, 1990 and converted into public limited company on April 14, 1991. It was the firstcompany to introduce Canola oil in Pakistan consumers, and recognized the importance of local seed cultivation, which helps in quality control and save foreign exchange spent onimported oil.

WOM has developed new areas in Sheikhupura, pinawal and Mandi Bahauddin, comprising10,000 acres for the cultivation of sunflower. WOM supplied farmers with high quality seeds,obtained from world-renowned companies like ICI and Cargil.

WOM not only produces Seasons Canola, quality cooking oil, but is also known for the

excellence of its other products like Punjab Atta NO.1 and National Feeds. The Pakistanstandard Institution (PSI) has recognized it quality control process management.

The search for better and healthier diets has now become a matter of primary concern. SeasonCanola oil is so pure that even upon refrigeration it does not become solidify completelyadores itself and enhances the taste of any food cooked in it. It also had the lowest percentageof cholesterol forming fats that results in preventing the formation of cholesterol in bloodvessels, and reduces cholesterol. The consumers of Canola oil had significantly fewer heartattacks and cardiac deaths. Another research results that the regular use of canola oil mayreduce the risk of cancer.

The human body has natural defenses against most cancers but it is important to fortify thesedefenses by eating right diet, a diet rich in Canola oil.

Seasons Canola oil has the best nutritional profile, low in saturated fat, and a source of omega-3 and 6 fatty acids. The omega refers to chemical structure of the fatty acid. Lanoline acid isknows as omega-6 and Alpha-lanoline as omega-3. Seasons Canola also contains Vitamin E,which is an essential nutrient required in a healthy diet.

Wali Oil Mills is cognizant of the fact that along with the physical fitness, a healthy, educated

society is imperative for the well-being of the people, led by this spirit of social welfare; WaliOil Mills has established a school spread over an area of 30 kanals adjacent to its plant, wheremore than 600 children of people living in the vicinity receive quality education.

WOM has invested 48 Million rupees initially and issued 48,000 shares of Rs. 10 aach togenerate public through stock exchange.

There are 152 permanent employees working for Wali Oil Mills Ltd. Other than these packaging departments and loading unloading work is on contract basis.



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The main raw material Rapeseed is importing from Canada and Australia. However the local purchase of Sunflower is made through farmers.

The management of the company consists of Board of Directors as the nature of the companyis Public limited. It is listed in Lahore Stock Exchange (G) limited. It is a subsidiary of

National Group of Industries

Situational Analysis

PEST / PESTLE Analysis

Stands for "Political, Economic, Social, and Technological analysis" and describes aframework of macro environmental factors used in the environmental scanning component of strategic management. Some analysts added Legal and rearranged the mnemonic to SLEPT;inserting Environmental factors expanded it to PESTEL or PESTLE, which is popular in the

UK. The model has recently been further extended to STEEPLE and STEEPLED, addingeducation and demographic factors. It is a part of the external analysis when conducting astrategic analysis or doing market research, and gives an overview of the different macroenvironmental factors that the company has to take into consideration. It is a useful strategictool for understanding market growth or decline, business position, potential and direction for operations. The growing importance of environmental or ecological factors in the first decadeof the 21st century have given rise to green business and encouraged widespread use of anupdated version of the PEST framework. STEER analysis systematically considers Socio-cultural, Technological, Economic, Ecological, and Regulatory factors.



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Political

Factors are how and to what degree a government intervenes in the economy. Specifically,

political factors include areas such as tax policy, labor law, environmental law, traderestrictions, tariffs, and political stability. Political factors may also include goods and serviceswhich the government wants to provide or be provided (merit goods) and those that thegovernment does not want to be provided (demerit goods or merit bads) Furthermore,governments have great influence on the health, education, and infrastructure of a nation.

Economic

Factors include economic growth, interest rates, exchange rates and the inflation rate. Thesefactors have major impacts on how businesses operate and make decisions. For example,

interest rates affect a firm's cost of capital and therefore to what extent a business grows andexpands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy

Social

Factors include the cultural aspects and include health consciousness, population growth rate,age distribution, career attitudes and emphasis on safety. Trends in social factors affect thedemand for a company's products and how that company operates. For example, an ageing

population may imply a smaller and less-willing workforce (thus increasing the cost of labor).Furthermore, companies may change various management strategies to adapt to these socialtrends (such as recruiting older workers).

Technological

Factors include ecological and environmental aspects, such as R&D activity, automation,technology incentives and the rate of technological change. They can determine barriers toentry, minimum efficient production level and influence outsourcing decisions. Furthermore,technological shifts can affect costs, quality, and lead to innovation.

Environmental

Factors include weather, climate, and climate change, which may especially affect industriessuch as tourism, farming, and insurance. Furthermore, growing awareness to climate change isaffecting how companies operate and the products they offer--it is both creating newmarketsand diminishing and destroying existing ones.

Legal



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Factors included are crimination law, consumer law, antitrust law, employment law, andhealth and safety law. These factors can affect how a company operates, its costs, and thedemand for its products.

The model's factors will vary in importance to a given company based on its industry and the

goods it produces. For example, consumer andB2B companies tend to be more affected by thesocial factors, while a global defense contractor would tend to be more affected by politicalfactors. Additionally, factors that are more likely to change in the future or more relevant to agiven company will carry greater importance. For example, a company who has borrowedheavily will need to focus more on the economic factors (especially interest rates).

Furthermore, conglomerate companies who produce a wide range of products (such as Sony,Disney, or BP) may find it more useful to analyze one department of its company at a timewith the PESTEL model, thus focusing on the specific factors relevant to that one department.A company may also wish to divide factors into geographical relevance, such as local,national, and global (also known as LONGPESTEL).

SWOT analysis

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluatethe Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a businessventure. A SWOT analysis can be carried out for a product, place, industry or person. Itinvolves specifying the objective of the business venture or project and identifying the internaland external factors that are favorable and unfavorable to achieving that objective. Thetechnique is credited to Albert Humphrey, who led a convention at the Stanford ResearchInstitute (now SRI International) in the 1960s and 1970s using data from Fortune 500companies



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Strengths

Brand name

Seasons is first canola oil in Pakistan. WOM (Wali Oil Mills) has been leader for almost 10years to establish the brand name in country. Now it enjoy a good reputation and strong brand

loyalty. Recent failure of Sufi canola is the example of Seasons strong brand name in canolaoil.

Manufacturing efficiency

WOM has latest production plant, which assures the required quality of its product. WOM hascompetitive edge on the other companies of extracting the seeds and packing of the refined oil.It has capacity of 48,000 MT per annum, which is highest in Pakistan.

Strong advertisement

As the product of WOM fall in the fast moving consumer goods (FMCG), it needs heavyadvertisement to acquire a considerable market share. WOM spend a good amount onadvertisement of its product. That is why in the better position of marketing Seasons inPakistan against the Giants like Lever Bros. and Habib Oil Mills.

Good market share

WOM enjoys a good market share as it has number four position in the market according tosale of the product.

Quality consciousness



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WOM is considered the best refining unit in Pakistan. It not only producing edible oil of itsown marketing but also provides this facility to some other oil mills like Madni Oil Mills,Hamza Ghee Mills etc. The ISO 9001 certification of WOM operation is the authenticity of itsclear target of being the leader in quality based products provider.

Weakness

Distribution channels

It was weak distribution in area other than Punjab and KPK. That is why company is not ableto increase its market share in the country to point it aims at. The product availability isuneven strong areas.

Weak management

Though the company has been performing well yet it has loopholes in the management. Theemployees have no clear idea of companys mission and there is impression of centralizationin day-to-day decision-making. The weakness proving the failure of the company to expandagainst the high potential of growth, in the industry

Opportunities

Changing consumer behavior

As the awareness of the people about the heart diseases is increasing, the precautionarymeasures are getting importance in the routine life of the people. Especially, the high segmentof the people is living in cities. People are switching from the usage of Ghee to edible oils.Cooking oil users are switching to pure oil.

Growth of existing market

People are switching from the usage of Ghee to cooking oils, even cooking oil user areswitching to pure edible oil.

Threats

Strong CorporationThe existence of some giant competitors in the industry has created an intense competitionamong the companies. Each of the company has to concentrate of marketing strategy andforward integration for its existence.

New Entrants

So far in canola there are a very few manufactures yet it has a threat as the entry barriers arevery low. Initially, the WOM was the only canola oil manufacture in Pakistan but as there is



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no regularity hindrance in manufacturing and refining of canola oil in Pakistan, so newcompanies are also coming in canola segment.

Substitute products

Any development in health industry may change the habits of our consumers. New productscan be brought in very easily which may prove more effective and important for human health,especially for heart disease.

Agricultural based supplies

The base raw material is based on agricultural product. The prices of the raw material based onthe crop and weather condition of the country. There is uncertainty in raw material supplies.The WOM has to concentrate on the inventory stocks. The WOM is currently incurring 86%of total COGS on its inventory and raw material stocks are 77% of its current assets for the

year 2011

Value Chain

The value chain Analysis (M.Porter)

M.PORTER FIVE FORCES

The Porter's Five Forces tool is a simple but powerful tool for understanding where power liesin a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you're considering movinginto. With a clear understanding of where power lies, you can take fair advantage of a situationof strength, improve a situation of weakness, and avoid taking wrong steps. This makes it animportant part of your planning toolkit. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. However it can bevery illuminating when used to understand the balance of power in other situations.

Understanding the Tool

Five forces analysis assume that there are five important forces that determine competitive power in a business situation. These are

1-Supplier Power

Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength andcontrol over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliersare.

2-Buyer Power



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Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven bythe number of buyers, the importance of each individual buyer to your business, the cost tothem of switching from your products and services to those of someone else, and so on. If youdeal with few, powerful buyers, then they are often able to dictate terms to you.

3-Competitive Rivalry

What is important here is the number and capability of your competitors. If you have manycompetitors, and they offer equally attractive products and services, then you'll most likelyhave little power in the situation, because suppliers and buyers will go elsewhere if they don'tget a good deal from you. On the other hand, if no-one else can do what you do, then you canoften have tremendous strength.

4-Threat of Substitution

This is affected by the ability of your customers to find a different way of doing what you dofor example, if you supply a unique software product that automates an important process,

people may substitute by doing the process manually or by outsourcing it. If substitution iseasy and substitution is viable, then this weakens your power.

5-Threat of New Entry

Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in

place, or if you have little protection for your key technologies, then new competitors can

quickly enter your market and weaken your position. If you have strong and durable barriers toentry, then you can preserve a favorable position and take fair advantage of it



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The value chain (M.PORTER)

SupportActivity

Primary Activity

1 Firm infrastructureThe management of the company consists of Board of Directors, as the nature of the companyis Public Limited. It is listed in Karachi Stock Exchange. It is a subsidiary of National group of

Industries. Mr. Muhammad Bashir is the Chairman of the group and Chief Executive of WOM. Mr. Amir Bashir is running the firm as Managing Director of the firm.

2-Human Resource Management

The WOM has no harm department. It has a cause of company slow growth and failure inacquiring the desired and deserving market share.

3- Technological development

There is no technological development in the process of refining and extracting of natural oil.

So company has no such arrangement or worries about this development. The company hasalready been utilizing the plant, which is considered the best in Pakistan .

4- Procurement

No doubt it is in the initial stages yet company is meeting its current raw material and suppliesrequirement quite efficiently with quite professional relations with suppliers. The raw materialis of seasonal nature so the company has to keep a sufficient stock for at least one year and hasto maintain an inventory level to avoid stock out. The company has to buy the raw material


Firm infrastructure

H.R.M

Technology Development

Procurement

In bondLogistic

Operations Out bond

Logistics

Marketing&

Sales

Services


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almost on cash basis as the Payment period to Creditors show 13 days for year 2000. Thecompany meets this requirement by acquiring short-term loans from bank.

5-Inbound Logistics

The company has strong control over raw material handling as inventory in days shows therate of 91 days in 2000. The basis reason for this high rate is the nature of raw material. TheWOM has its own local office in Multan territory from to it has direct a purchase of local seed.This is not possible without a well-defined system in such a big set up like WOM .

6-Operations

The companys production plant situated at ferrozewatooan Faisalabad Road. The company isusing full capacity of its production plant.

7 Outbound LogisticCompany has a weak distribution channels in southern and Baluchistan province. It has onlyone distributor in Quetta for whole Baluchistan province. But now the Company finding newfinancially strong parties for its products distribution

Analysis of various Marketing Activities

Marketing MixMarketing Mix is comprised of four heads these are Product, Place, Promotion and Price.

Here we will discuss all four heads briefly .

Product

The main product of WOM is oil and ghee which is marked in about two dozens packing.These products are market in different packages.

WOM Season 1/ 2.5/ 5 kg 0.5/ 1/2. 5/ 3 / 4.5/10ltr

Pouch / Tins Pouch Bottle Tin Cane

Place

The companys production plant situated at ferozwatooan Faisalabad Road. The company isnot using full capacity of its production plant. WOM markets its full range o0f offers to wholePakistan. It has been facing a distribution problem and Company has a week distribution



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channels, the unavailability has been reported in many cities even the plant is working on fullcapacity. On the other hand it has the lowest availability in southern and Baluchistan it istrying to overcome the problem and finding new distribution channels.

Promotion

WOM is involved in heavy promotional activities. They keep the competitors activities andencounter in terms of publicity and advertisement. For example, it has managed the joint

promotional activities with Macdonalds restaurant. The grand art competition in girlscolleges and School The company also concentrating on signboard, publicity, Heart Meal atInstitute of cardiology is one of the best examples of promotional activities of WOM.

Price

Wali Oil Mills Ltd. produces the rapeseed oil and to some extant of cotton seed oil in different

packaging of carton and bottles

Pack Size Price for Per Piece1.0 Ltr Bottle (1*20) 167.943.0 Ltr Bottle (3*6) 4862.25 Ltr Jar (8*2.25) 381.164.5 Ltr. Jar (4*4.5) 753.042.25 Ltr. Tin (4*2.250) 738.674.5 Ltr. Tin (4*4.45) 77010.0 Ltr. Jar/Cane (2*10) 2065.6816.0 Ltr. Jar/Cane (1*16) 2376.671.0 Ltr Pouch (12*1) 136.67

.

Competitors

Dalda

Rafhan Corn Oil

Super Habib

Tullo

Soya Supreme

Sufi cooking Oil

COMPETITORS ANALYSIS

Competitors view (Packing Wise)



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Company Name BrandSunflower

Cooking OilCanola Cooking

OilLever Brothers Dalda 5lt, 4.5lt, 2.5 ltRafhan Best FoodLtd.

Rafhan Corn Oil 10 lt, 4.5 lt, 2.25 lt,1.00 lt

Habib Oil MillsLtd.

Super Habib 5.0 lt, 2.5 lt, 3.0 lt, 1.00lt

1 lt, 2.25 lt, 3.0lt, 4.5lt,10 lt

Wazir AliTullo 5 lt, 4.5 lt, 3.0 lt, 2.5 lt ,

1.00 ltSoya Supreme 10 lt, 2 lt, 2.5 lt, 1.00 lt

Hamza Vagetable Oil& Ghee Ind.

Sufi Cooking Oil 5 lt, 3.0 lt, 2.5 lt, 1.00 lt 5 lt, 3.0 lt, 2.5 lt, 100 lt

Wali Oil Mills Ltd.Seasons 10 lt, 5 lt, 2.50 lt 10 lt, 4.5 lt, 3.0 lt 2.25

lt,1.00 lt, 0.5 lt

Process and problems



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What is cooking oil?Oils and fats used for cooking and frying foods are called Edible or Cooking Oils. They can befrom vegetable or animal source. Chemically speaking, oils are Tri-Glycerides or Fatty-AcidGlycerin Esters (FAGE). One Glycerin molecule combines with three Fatty-Acid moleculesto form one FAGE. Oils are a blend of different types of FAGEs. The Oils can bedifferentiated on the basis of the length of carbon chain in the Fatty Acids and the number andlocation of double bonds in the carbon chains of the Fatty Acids. Greater the number of double

bonds between two carbon atoms, the greater is the extent of unsaturated fatty-acids in thefatty-acid profile of the oils. Unsaturated oils and fats are considered more desirable thansaturated oils and fats from health point of view.

Types of vegetables oil and fatsVegetable Oils are obtained from a variety of seeds, grains and nuts. Most common types of oil-bearing seeds and nuts are Canola, Castor, Coconut, Corn (Maize), Cottonseed, Mustard,Olive, Palm, Palm-Kernel, Peanut (Groundnut), Rapeseed, Safflower, Soybean, andSunflower. Other major specialty oils are obtained from Almond, Avocado, Cashew,



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Grapeseed, Jatropha, Pecan, Pine, Shea, and Walnut. There are literally hundreds of other seeds and nuts that are available regionally around the world.

Types of Animal Oils and FatsAnimal Oils are obtained from a variety of animals. Most common types of oils and fatsinclude Chicken-Fat (Chicken), Fish-Oil (Fish), Lard (Pigs), and Tallow (Cows). Each one of these oils and fats comes in edible and non-edible categories and multiple grades within eachcategory.

Why Refine Oil?All oils and fats have impurities such as Moisture, Solids (Insolubles), Gums (Lecithins), Free-Fatty Acids (FFA), Waxes, and Compounds of Sodium, Potassium, Magnesium, Calcium, andother metals. These impurities must be removed to improve the functionality of the oils. Other characteristics of oils (such as Color, odor, and taste) are also considered impurities by modern

consumers. These impurities are removed in a series of steps such as degumming (to removegums), neutralizing (to remove FFA), bleaching (to remove color), deodorizing (to removeodor and taste), and dewaxing or winterization (to remove waxes).

What is RBD Oil?Refined oil is commonly called Refined, Bleached, and Deodorized (RBD) oil. As describedearlier, these are the three main steps in the refining process; although additional steps arerequired in most cases.

Chemical RefiningOil is treated with caustic lye for separation of free fatty acids from oil. This is a conventional

process that can be applied to all oils. A byproduct of alkali refining is soap-stock, which isused for manufacture of low quality washing soap. Alternately, the soap-stock can be treatedwith acid to recover fatty acids. The waste-water from refinery requires extensive treatment.This can be avoided by alternate physical refining process.

Physical Refining



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In physical refining, the free fatty acids are removed from oil during FFA stripping. The alkalitreatment is completely avoided. This reduces the load on waste-water treatment. This processis becoming more popular.

DegummingThe purpose of degumming is to remove gums. All oils have hydratable and non-hydratablegums.a. Water Degumming: Hydratable gums are removed by treating oils with water andseparating the gums. The gums can be dried to produce lecithin.

b. Acid Degumming: Non-Hydratable gums are removed by treating oils with acids andseparating the gums.

NeutralizingThe purpose of neutralizing is to remove Free-Fatty Acids (FFAs). Traditionally, FFAs aretreated with caustic soda (NaOH). The reaction produces Soaps which are separated from theoil. Because trace amounts of soaps remain in the oil, the oil is either washed with water or treated with Silica.Some processors prefer not to perform caustic neutralizing. Instead, they prefer physical

refining in which the FFAs are evaporated from the oil under high temperature and vacuum.This process can be combined with deodorization step described under FFA stripping.Physical refining process is preferred because (a) it does not produce soaps; (b) it recovers

fatty acids that provide better cost recovery; (c) there is smaller yield loss compared to causticrefiningespecially for oils with higher FFAs; and (d) it is a chemical-free process.

BleachingThe purpose of bleaching is to remove color pigments contained in the oils. The oil is treatedwith Bleaching Clays that adsorb the color pigments. The clay is filtered and the clean

bleached oil is stored for further processing. Process flow diagram is attached.

FFA Stripping



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As mentioned previously, the equipment can be slightly modified to achieve physical refiningof FFAs. Since the conditions for deodorization and physical refining are almost identical, themodified equipment can be employed to achieve deodorization as well as physical refining.

Fatty-Acid Recovery

Fatty-Acids are evaporated (distilled) in FFA Stripping. The Fatty-Acid vapors are condensed by direct contact with liquid Fatty-Acids to recover the evaporated Fatty-Acids. Thedistillation and condensation of Fatty-Acids is accomplished under very high vacuum to lower the boiling point of Fatty-Acids and prevent them from oxidizing.

Dew axing/Winterizing

The purpose of winterization is to remove waxes especially in those oils that contain wax.Such oil is subjected to chilling and filtration to remove waxes and other high melting point

substances.Winterizing is also used to separate the unsaturated fats from unsaturated fatsespecially inPalm Oil. The chilling process solidifies the saturated fats; thus enabling separation viafiltration.

Hydrogenation

Vegetable Oils have varying degrees of saturation levels. Some food products can only be prepared in saturated oils & fats. Hence, some food companies hydrogenate vegetable oils to produce desired level of saturation in the Oils & Fats. Vegetable oils can be hydrogenated

under high temperature and pressure in the presence of a catalyst.

Bakery FatThe bakery industry used hydrogenated oil (i.e., shortening). However, the shortening for

bakery application should be of smooth texture. Granular texture, while desired in banaspatighee, leads to bleeding of fat in bakery products. Hence, hydrogenated oil is cooled under controlled conditions to get a product with smooth plastic texture suitable for the bakeryindustry. Techno hem manufactures scraped-surface heat-exchanger to produce bakery fat.

LecithinGums (Lecithin) present in Vegetable Oils are valuable emulsifier and an additive in preparedfoods. Hence, it may be profitable to recover them for sale to food companies. Thedegumming process described above produces a mixture of gums, oil, and water. The mixtureof gums, oil, and water is introduced in a thin-film evaporator operating under vacuum toremove water. The resulting dry mixture of gums and oil is sold as crude dry gums or lecithin.The main design concerns are that the evaporation of water should be quick and take placeunder higher vacuum to prevent charring and discoloring of gums.

Acid-Oil



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The caustic neutralization process described above produces Soap Stocka mixture of Soaps(Fatty-Acid Salts), Oil, and Water. Soap Stock, by itself, is a low value by-productusually awaste product. However, it contains considerable amount of Fatty Matter, which may be

profitably recovered for sale as a higher-value product. This is accomplished by convertingSoaps into Fatty Acids by reacting with an Acid. The resulting product is a mixture of FattyAcids and Oil (commonly called Acid Oil).

GlycerolizesThe physical refining process described above produces Fatty Acid Distillate a mixture of Fatty Acids and Oil. The value of the Distillate may be enhanced by converting Fatty Acidsinto Oils. This is accomplished by reacting Fatty Acids with Glycerin to produce Oil. Theresulting product is dried to recover oil for sale as a higher-value product.

Negative health effects

Hydrogenated oils have been shown to cause what is commonly termed the "double deadlyeffect", raising the level of LDLs and decreasing the level of HDLs in the blood, increasing therisk of blood clotting inside blood vesselsA high consumption of omega-6 polyunsaturated fatty acids (PUFAs), which are found inmost types of vegetable oil (e.g. soybean oil, corn oil the most consumed in USA, sunflower oil, etc.), may increase the likelihood that postmenopausal women will develop breast cancer.A similar effect was observed on prostate cancer in mice. Plant-based oils high inmonounsaturated fatty acids, such as olive oil, peanut oil, and canola oil, are relatively low inomega-6 PUFAs and can be used in place of high-polyunsaturated oils

Storage

The model was applied to the analysis of an industrial storage plant.The refinery processes sunflower, Canola and corn oil with a maximum residual

solvent content RSC of 0.1% by weightHigher RSC values were taken into account (e.g., 0.38% and 0.75% by weight).The tank farm is equipped with a heating system which prevents the vessel cooling to

temperatures lower than about 18C in presence of cold weather.



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For temperatures higher than 18C the operative temperature can be assumed equal tothe average ambient temperature.

SupplierThe raw material rapeseed is importing from Canada and Australia. However the local

purchase of sunflower is made through farmers

DistributionThe distribution is not own the concept of 3 rd party contract prevailed for distribution then thedistributors touch the wholesaler, retailer, and end consumers

WarehousesThe warehouses are established in the main cities of the country included Lahore, Karachi,Multan, Rawalpindi

Conclusion and RecommendationThe development of environmentally friendly process has its definite difficulties andchallenges. The increase in yield that can be achieved by the methods described previously iscertainly a very suitable solution applied to small industries. However, the use of thesemethods on large industries will be a dilemma, where the quantity produced is a far comparison to the common method of solvent extraction. The higher cost, especially inenzyme procurement and ultrasound infrastructure pose a significant problem. Even so, as thegrowing trend of healthy products in which less-processed product such as corn oil are wellappreciated and rewarded with premium prices, this scenario is without doubt an opportunity

that cannot be ignored. The increasing public awareness of the environment has also helped tochange the paradigm. Buyers these days do not mind paying more for organic and chemicalfree products. Furthermore, the possibility of clean production can also be developed due tothe possibility to reuse the by-products generated.The ease of application is clearly the advantage of aqueous extraction; moreover, its

performance can be improved with either of the use of enzymes or ultrasound assistance. Coldextraction process promises a consistent means to produce high enough yield. Supercriticalfluid extraction provides a technique with high extraction rates. Meanwhile, the purificationtechnique, flexibility and ease of application are the advantages of adsorptive refining,

whereas more specific purpose can be obtained by membrane filtration. With theseadvantages, surely there is no reason to not be able to produce high quality edible oil withenvironmentally friendly methods; all the more, because it is much appreciated with a high

price in the market.

Prepared by Ghulam Dastgeer and group fellows

Documents

POM Assignment G.D