Engineering

VAB 4042/VBB 4043 Engineers in Society
EXECUTIVE SUMMARY
Project Management has become a very important aspect in every project which involves in
the beginning of the project until its completion. This report is about the application of
project management in Hot Water Recovery project in Cargill Sdn Bhd, Port Klang. The
scope of this project includes Introduction, Background of project, Organization, Project
management,
Financial
Breakdown,
Environment
Health
&
Safety,
Discussion,
Recommendation and Conclusion.

The Introduction section covers on company profile (Cargill Sdn Bhd) which is about the
company business and operations. Background of project is the second section in this report
which discussed about the project technical information, problem statement, objective of the
project and the idea proposed. The following chapter will be Organization, where the
information on few teams is explained. Next is Project Management section which
compromise of three sub topic which is work breakdown, activities estimates and work
schedule. Then, the following chapter is financial breakdown which one of the crucial topic
in this report where it covers financial management and cost estimation. Environment, health
and safety (EHS) is the last important topic which covers EHS management, Environment
impact, Safety and Hazard identification and safety and hazard routine. The last three topics
are discussion, recommendation and conclusion.
TABLE OF CONTENTS
1

EXECUTIVE
SUMMARY........................................................................... .................................
i
LIST
OF
FIGURES
........................................................................... ................................. iii
LIST
OF
TABLES
........................................................................... ................................. iv
1. INTRODUCTION.......................................................................................1
1.1
Introduction To Cargill.................................................................................1
2. BACKGROUND OF PROJECT.....................................................................3
2.1
Problem Statement......................................................................................3
2.2
Project Objective........................................................................................3
2.3
Background.............................................................................................. 3
2.4
Project Work............................................................................................ 4
3. ORGANIZATION........................................................................................8
3.1
Organization Chart.....................................................................................8
3.2
Organization Jobscope................................................................................10
4. PROJECT MANAGEMENT........................................................................17
4.1
Work Breakdown Structure..........................................................................17
4.2
Activities Estimates....................................................................................23
4.3
Work Shcedule.........................................................................................28
5. FINANCIAL BREAKDOWN.......................................................................31
5.1
Financial Management................................................................................35
5.2
Cost Estimation........................................................................................35
6. ENVIRONMENT, HEALTH & SAFETY

6.1
EHS Management
6.2
Safety & Hazard Identification
6.3
Safety & Hazard Routine
7. DISCUSSION
8. RECOMMENDATION
9. CONCLUSION
10. REFERENCE
LIST OF FIGURES
Figure 1: Location of Cargill business around the world..........................................................1
Figure 2: Process flow the Hot Water recovery project.............................................................7
Figure 3: Organization chart of the overall project....................................................................8
Figure 4: Organization chart of the engineering department.....................................................9
Figure 5: Overall Project Structure..18
Figure 6: Planning Phase Work Breakdowns for Energy Recovery Project19
Figure 7: Execution Phase Work Breakdowns for Energy Recovery Project..20
Figure 8: Closing Phase Work Breakdowns for Energy Recovery Project......22
Figure 9: Ghant Chart...............................................................................................................29
Figure 10: Organization Chart for Finance Division................................................................31
Figure 11: Road Map for Financial Management....................................................................32
Figure 12: Organization Chart of EHS Department................................................................39
Figure 13: Personal protective equipment (PPE).....................................................................48
Figure 14: Safety form for coil fabrication..............................................................................49
Figure 15: Safety form for new tank fabrication.....................................................................50
Figure 16: Safety form for working in confined space...........................................................51
Figure 17: Safety form for working at height.........................................................................52
LIST OF TABLES
Table 1: Label of Hot Water recovery project...........................................................................7
Table 2: Activities Estimates Level 1 & 2............................................................................23
Table 3: Activities Estimates Level 3...................................................................................25
Table 4: Activities Estimates Level 4...................................................................................27
Table 5: Jobcopes of personnels from Finance Team .............................................................32
Table 6: List of equipment cost ...............................................................................................35
Table 7: List of service cost ....................................................................................................37
Table 8: List of labour cost .....................................................................................................37
Table 9: List of transportation cost ..........................................................................................38
Table 10: List of overall cost ...................................................................................................38
Table 11: List of safety rules ...................................................................................................43
Table 12: List of effects from electric shock ...........................................................................46
Table 13: List of physical barrier method ...............................................................................46
1. INTRODUCTION
1.1 INTRODUCTION TO CARGILL
1.1.1 Background of Cargill
Cargill is an international company which is founded in 1865 which now employs about
153, 000 people in 66 countries. This is a privately held company where there is four major
marketing. The main marketing area is producer and marketer of food, agricultural, financial
and industrial.
Figure 1: Location of Cargill business around the world.

1.1.2 Cargill business in Malaysia
Cargill has been conducting business in Malaysia since 1978 and has a significant
presence in this country. (Home: Cargill Corporation, 2007). The headquarter of Cargill in
Malaysia situated at Menara TM, Kuala Lumpur and currently more than 500 people are
working for Cargill at six different location.
There are five operations in Malaysia which are:
Cargill Animal Nutrition with feed mills located at Melaka, Butterworth, Port Klang
(Westport) and Kota Kinabalu.
Grain & Oilseed Supply Chain operating distribution centres out of Port Klang
(Westport) and Butterworth, Penang.
1
Cargill Palm Products with three Palm oil refineries located at Port Klang, West Port
and Kuantan.
Cargill Texturizing Solutions business located in Kuala Lumpur.
Global IT Support Services for selected Cargill businesses worldwide
Cargill acquired its palm oil and fats operation in 1991 and upgraded the plant facilities.
Currently there are six production plant and eight packaging lines in this factory. These six
production plant includes two refineries (Lurgi and Multistock), two fractionation process
plant (Palm Oil Fractionation and Palm Kernel Oil Fractionation) and two hydrogenation
process plant (Hydro 1 & Hydro 2) while the packaging lines varies by the amount of the
edible oil in the specific container.
Products ranging from palm oil based bakery fats for use in the baking and frying
industries, value added bulk refined oils, packaged palm products and specialty fats and oils
are delivered to customers at hundreds of destinations in over thirty countries around the
world. (Products & Services: Cargill Corporation, 2007).
2. BACKGROUND OF PROJECT
2.1 PROBLEM STATEMENT
The main problem in this current situation is the capacity of the hot condensate water
tank. Due to smaller capacity of tank, the amount of hot water in the tank is also lesser. The
balance condensate water overflows to the drain although there is level switch. This is
because the level switch is not start to operate yet. Furthermore, steam from the condensate is
not trapped so it escapes into the atmosphere. Indirectly, the hot condensate water and steam
are being wasted.
Besides that, in POF plant, steam is being used to melt the stearin cake. This
consumed some amount of steam which produced by the boiler. Steam is one of the utility
that a company needs to save because it cost high too. The steam which flows in the steam
coil flows all the time except during the plant shut down or some other failure on the
membrane press.
2.2 PROJECT OBJECTIVE
The objective of this project is to save energy by reducing the steam consumption in the
plant and recycle the hot condensate water from the plant. The task for this project divided to
two where the first task is to construct additional hot water coil and the second task is to
construct a new hot condensate water tank.
2.3 BACKGROUND
2.3.1 Palm Oil Fractionation (POF) operation
Palm Oil Fractionation (POF) plant operates to fractionate the palm oil to Palm
Stearin and Palm Olein oil. This operation starts from crystallization process and followed by
the squeeze process by membrane press. In the squeezing process, membrane press will
squeeze the (Refined Bleached Deodorized) RBD palm oil with respective pressure. During
that process, the Olein oil will flow to the entire small pipeline along the membrane press and
store at the Olein Tank. While the stearin cake, will trap in between both hard and soft
membrane. Once the process is done, the membranes will be released one by one, so that the
trapped stearin cake will drop below by gravity fall into the stearin tank. In order to transfer
the stearin oil to the respective tank, it will be melted by supplying steam into the steam coil
at the bottom of the tank.
2.3.2
Condensate Recovery
The Hot Condensate Water tank collects the condensate water from most of the
equipment from Hydro Plant, Multistock and POF plant. It also connected to a pump at the
bottom of the tank to supply the water to POF, Hydro 1&2, Pilot plant and water reservoir.
The main reason the condensate water is supplied to those plants is for washing purpose
while another pipeline connected to the water reservoir to avoid overflow from the tank. The
entire valve at the output header is manually controlled. Although the tank is insulated but
currently it is at bad condition where the water is leaking from the tank and pump. Besides
that the condensate steam is being wasted by escaping from the top of the tank. The
condensate tank is designed in cylindrical shape and the length of the tank is 3.1m with
diameter is 1.2m. In addition, there are also both high and medium level switch fixed at the
tank but it has not start to operate yet.
2.4 PROJECT WORK
2.4.1 Proposed Design
There are several ideas that can be implemented to solve this problem especially the
ways to reduce the steam consumption in the stearin tank. The basic criteria that need to
consider are to save energy, project cost and the payback. There are few types of equipment
or devices that are been used for this type of project such as automated control valve and
turflow heat exchanger.
i) Automated Control Valve
A basic control system usually consists of control valves, actuators, controllers and
sensors. The control system of valve works as below:
Take input directly from a sensor and provide a control function.
Interface with a computer to alter the control functions, and perform diagnostic
routines.
Modify the valve movements to alter the characteristics of the control valve.
Interface with plant digital communication systems.

4
ii) Turflow Heat Exchanger

The Spirax Sarco EVC is based on the Turflow heat exchanger with an additional
connection and utilizes flash steam from discharge and exhausts vent pipe work to pre-heat
make-up or process water thereby recovering valuable heat energy that would otherwise be
lost to atmosphere. The Spirax Sarco EVC will improve steam system efficiency and is
environmentally friendly, reducing CO2 + carbon emissions and removing visible discharges
from the atmosphere whilst saving valuable energy. It is easy to install and provides an
optimized heat transfer solution when compared to other heat exchanger designs used in
similar applications. (Turflow Heat Exchanger,EVC).
2.4.2
Final Design
In order to solve this problem, the team came out with a solution after considering all
the factors. The author assists the team to design the structure and do general calculation of
the heat needed for stearin to melt. The project work can be divided to two parts which is the
hot water tank and hot water coil. The figure below shows the process flow of this idea:
a) New Hot Water Tank
Since the condition of the current condensate water is bad and the capacity is small,
the team proposed to construct a new tank with 44% larger capacity with insulated. The
original length and diameter of the tank is 3m and 1m, so the volume is 2.36 m3.
b) Hot Water Coil
The proposed idea is to construct a new hot water coil. This is because, the steam
consumption in stearin tank can be reduced by implementing this idea. At the same time,
the condensate water will be used for some useful purpose instead of washing purpose.
Since the current steam coil is designed to be used for steam so a new coil is planned to
be construct above the steam coil with the appropriate design, so that can be used for
water. According to the calculation, the heat needed is 82.36 kW to convert the
temperature of stearin from 25C to 60C. In order to achieve the temperature of stearin
to 60C, the flow rate of the water should be 2353.1367 kg/hr. To meet this requirement,
the surface area of coil needs to be considered to design it accordingly.
c) Temperature Control valve at pipe fittings after stearin tank

The purpose of the valve is to open and close when it receives signal from the Hot
Condensate Tank. This is to maintain the flow rate according to the temperature needed
for stearin which is 60 .
d) Level Switch for Hot Condensate Tank
i.
According to the project objective, the hot water is recycled back to the Hot
Condensate Tank where there is also incoming condensate from the plant. This will
cause overflow in Hot Condensate Tank if this matter is not taken serious.
Therefore it is proposed to install three level switches in the Hot Condensate Tank
ii.
which is to sense the maximum level and minimum level. When the fluid inside the
Hot Condensate Tank reach the maximum level, the switch will send the signal to the
3 way Control Valve to open and close back when the fluid reach the minimum level.
e) Installation of a Heat Exchanger
Since there will be steam release from the Hot Condensate Tank, the team propose to
install a Heat Exchanger on top of Hot Condensate Tank so that the steam or hot vapour
will heat up the water which flow from the stearin tank coil and flow back to Hot
Condensate Tank.
Details:
Type of Heat Exchanger: Turflow Heat Exchanger
f) Hot Water Pump Installation
Type
: Centrifugal Pump
2.4.3
Process Flow of the Project
Figure 2: Process flow the Hot Water recovery project.
Table 1: Label of Hot Water recovery project.
3. ORGANIZATION
3.1 ORGANIZATION CHART
Head of Project
PROJECT
SECRETARY
ENGINEERING
TEAM
PROCESS TEAM
MECHANICAL
TEAM
ELECTRICAL &
INSTRUMENTATION
TEAM
HSE
MANAGER
PROCUREMEN
T MANAGER
HSE
COORDINATOR
HSE
ENGINEER /
TECHNICIANS
PROCUREMEN
T OFFICER
BUYER
PROCUREMEN
T ANALYSTS
MAINTENANCE
& UTILITIES
QA/QC TEAM
CONTRACTORS
(third party)
FINANCE
DIRECTOR
SUBCONSTRACTO
SENIOR
ACCOUNTANT
MATERIAL
CONTROLLER
FINANCE
ANALYSYT
FIELD
SUPERVISOR
PAYROLL
COORDINATOR
ACCOUNTANT
Figure 3: Organization chart of the overall project.
ENGINEERING
DEPARTMENT
SITE
PROCESS
TEAM
SENIOR PROCESS
ENGINEER
TECHNICIANS
MECHANICAL
TEAM
SENIOR
MECHANICAL
ENGINEER
ELECTRICAL &
INSTRUMENTATION
TEAM
SENIOR
ELECTRICAL
ENGINEER
TECHNICIANS
MAINTENANCE
& UTILITIES
TEAM
QA/QC &
INSPECTION
TEAM
ENGINEERS
TECHNICIANS
SENIOR
INSTRUMENTATION
ENGINEER
TECHNICIANS
Figure 4: Organization chart of the engineering department.
QA/QC
INSPECTOR
QA/QC
SUPERVISOR

3.2 ORGANIZATION JOBSCOPE
The main objective of this department is to plan, execute and

PROJECT
DEPARTMENT
finalize projects according to strict deadlines and within

budget.
Significantly for this project, Project Department is the in

charge department to accomplish the project according to
the time frame.
Personnel who acquire resources and coordinate the efforts of team

members and third-party contractors or consultants to deliver
projects according to plan. Project Manager will form a group with
the acquire members from various department regarding the
PROJECT
MANAGER
project.
For an instance, for this project (Palm Oil Fractionation (POF)

Operation and Condensate Recovery), Project Manager will
gather all the related personnel (ex: Process Engineer,
Mechanical Engineer, etc) to complete the project.

Besides that, he is the one will define the project scope, goals
and deliverables and also develop full-scale project plants and
associated communications documents.
Job of Secretary of Project Department doesnt involve several

tasks only but varies and they will be performing number of duties.
Basically for this project, the Secretary of Project will maintain job
files and correspondence, ordering and sending drawings, tacking
SECRETARY
all documentation, and also organizing project meetings and work

order management.
Establish warranty period with contractors company

Produce agreement and document that have to verified by
Project Manager and General Manager of the company
(CARGILL)
10
ENGINEERING
TEAM
This is a team consists of all the departments that involve

directly to the accomplishment of the project. Below describes
the department/ team involves to the department and also the
individual job scopes.
11

SITE SUPERVISOR
*Refer to Chapter 9.1

There will be various duties being performed by this department
but specifically for this project, certain personnel from the
department involve to provide suggestion and solution from process
PROCESS TEAM
perspective. For an example:
identify alternatives over problem statement and further studies
on the developed problem statement

comparisons of the set of solutions and also select the best
solution after discussion with various departments
Basically this departments duties will be on planning and

designing tools, engines, machines, and other mechanically
MECHANICAL
functioning equipment (either static or rotating equipments).
TEAM
Specifically
for
this
project,
personnel
from
Mechanical
Department will oversee the installation of the condensate tank and

Palm Oil Fractionation, the operation, and repair of such equipment
as centralized heat, gas, water and steam systems.
This department comprises two disciplines which are Electrical &
Electronic Engineering and Instrumentation Engineering. This
ELECTRICAL
&
INSTRUMENTATION
TEAM
department will organize and plan the overall E& I effort towards
the project and at the same time develop designs and drawings
regarding
the
fractionation
column
and
condensate
tank.
Development of wiring and installation drawings for electrical

equipment and instrumentation.
The focus of this department mainly evolves the utilities around the
MAINTENANCE &
UTILITIES TEAM
plant and the maintenance procedures regarding the utilities as to

extend the life span of the plan. As for this project, this department
will be in charge in installation of the equipments and also carried
of procedures to ensure the quality of the equipments and produce
SOP for future usage.
12
This department involves two areas of disciplines, Quality

Assurance and Quality Control. Regarding to this project, the
department will perform:
QA/QC &
reviews of site purchase orders (tanks, pipelines, etc) to ensure
that the applicable requirements are met

compile the vendors inspection assignments packages
reviews of suppliers inspection procedures and personnel
qualifications
reviews of suppliers material certificates
do take part in supplier material certificates and etc.
INSPECTION TEAM
HSE DEPARTMENT
HSE MANAGER
HSE COORDINATOR
HSE

ENGINEER/SUPERVISOR
PROCUREMENT
Basically
this
department
will
perform
and
coordinates
DEPARTMENT
administrative, technical and professional work that related to

ensuring that all court unites are supplied with the materials,
equipments, and services required functioning optimally, including
ensuring compliance with the appropriate policies and internal
controls.
PROCUREMENT
prepare specifications, negotiating service contracts and large
purchase orders.
at the same time, perform binding in order to find best
consultancy/service company to provide service for this project

provide payment clearance to the contractors and also security
clearance
monitor the task being perform by procurement analyst, buyer
and procurement officer

buying the requisite service or goods needed by the companies
regarding the project

sourcing and ordering the equipments such as the tanks,
MANAGER
13
PROCUREMENT
pipelines, valves and so one

do some research for new suppliers and negotiate/bid prices
with suppliers
gather information needed from the engineering team related to
the project to proceed tasks involving Procurement Department

assist Procurement Manager in selection of appropriate
suppliers/contractors (to purchase condensate tank, pipeline)

will be working together with Procurement Manager/ under
OFFICER
PROCUREMENT
ANALYST
Procurement Manager supervision in finding the best service
company for this project

act as liaison between the company, the Finance Department
and the contractors.

establish certain purchasing guidelines based on the strategies
and goals outlined by Procurement Manager and Finance
BUYER
Department for this project specifically.

this particular personnel will handle the Permit Pass and
Security Clearance
at the same time, manage the EHS Department clearance and
prepare the pay sheet to contractors

moreover, the tasks of a buyer will be assisting/working
together with Procurement Analyst and Procurement Officer, as
Buyer will be selecting the products (tanks, pipelines), finding
suppliers and negotiating prices

make sure the goods/equipments arrive on time to the plant and
the suppliers are paid
FINANCE DEPARTMENT
FINANCE MANAGER
SENIOR ACCOUNTANT
FINANCE ANALYST
ACCOUNTANT
PAYROLL
COORDINATOR

PROCESS DEPARTMENT
SENIOR
PROCESS the engineer will identify the alternatives over the problem
ENGINEER
statement and also select the solution with best justification after
14
the comparisons
besides that identify/trace the process route and valves so that
the operating conditions can be captured

produce SOP for Process Shutdown and Start-up procedure for
the installation of new Condensate Tank and modifications
towards the Fractionation Column

monitor and supervise the work being done by the technicians to
ensure doesnt create any problem towards the process system

produce new drawings (Process Flow Diagrams and Process &
Instrumentation Diagram) after the modification and installation
of new Fractionation Column and Condensate Tank performed

monitor the dry run test after the installation and ensure the
process system and production is not being disturb by project.
MECHANICAL DEPARTMENT
SENIOR
tasks of Mechanical Engineer almost similar to Process
MECHANICAL
Engineer but the perspective slightly differs where Mechanical
ENGINEER
Engineer focuses more on machinery and equipment aspects
rather than process system/ production

the personnel have to trace all the pumps, valves, compressors
and etc located related to the Fractionation Column so that
shutdown and start-up procedures can be prepared

prepare with the design specifications for additional equipments
which needed after installation of Condensate Tank, so that
Procurement Department can purchase the equipments

produce engineering documents to include assembly drawings,
installation drawings and engineering test specifications
ELECTRICAL & INSTRUMENTATION TEAM

SENIOR
provide electrical design and technical analysis regarding the
ELECTRICAL
ENGINEER
project to the related disciplines

supervise the technicians during the execution phase of the
project to ensure the tasks being perform correctly

monitor the battery limits and control variable
test and programme and commission of the new equipment
with the Building Monitoring and Control System (BMCS)
15
monitor and investigate the conditions of the sensors, DCS,

indicators and etc after the installation of new equipment into
SENIOR
INSTRUMENTAL
ENGINEER
the plant
prepare the new drawings and graphical diagrams after
execution phase of the project using CAD/AutoCAD

modify the drawings, specifications, calculations, charts and
graphs and monitor work for compliance to applicable codes

during the project the task will be focusing together with Senior
Electrical Engineer.
MAINTENANCE & UTILITIES DEPARTMENT

the task of this engineers will be similar with QA/QC &
Inspection Department but differs in the area of the inspection
respectively
this department will focus on machineries, engines, valves and
etc where they responsible for making sure machinery and
equipment runs smoothly (following the procedures given by
Mechanical Engineers)
organizing routine servicing schedules and supervise the
technicians whether they follow the schedules

this personnel also check and calibrate the instruments
ENGINEERS
(condensate tank, pipelines and etc) to make sure it operates at
required conditions
involve in installation of the equipments and respond
immediately to equipments that breakdown

at the same time, keep the process/production managers
informed with the progress after the installation of the new
project
QA/QC & INSPECTION DEPARTMENT

QA/QC SUPERVISOR produce routine/annual checklist for the pipeline inspections
which are located in the plant

discuss with other disciplines regarding the pipeline to be
inspected in the plant and prepare a systematic inspection
schedule
16
supervise the QA/QC Inspector during the Planning Phase of

the project where evaluation of safety level before/during/after
installation being carried out

perform evaluation of safety
level
before/during/after
installation according to the schedule given out by QA/QC
QA/QC INSPECTOR
Supervisor and report to the Supervisor

conduct the inspection task together with the contractors
4.0 PROJECT MANAGEMENT

This section of the paper covers the management aspect of the energy and steam recovery
project. The workload and the scheduling is branched into three main prospects, which are:
1. Work Breakdown Structure
2. Activities Estimates
3. Work Schedule
4.1 WORK BREAKDOWN STRUCTURE

Work Breakdown Structure (WBS) involves decomposition of a bigger project into
small sub requirements of a project which operate as prerequisite step in achieving the main
objective. WBS is structured in a way that it is hierarchical disintegration of the work to be
executed by the project team to create required deliverables (Matthis, 2000). In this project,
the WBS is structured into few development phases and involvements of departments/teams
that will cater to the necessity of the project. Figure 5 shows the tree-structure of the WBS in
terms of levelling and structuring the work load in order for the Planning, Execution and
Closing Phase. As evident in the figure, tree structure of WBS is divided into few levels for
hierarchical approach in achieving main objective of the project; notably:
Level 1
Level 2
Level 3
Level 4
Kick Start Phase

Planning Phase
Execution Phase
Closing Phase
17
WBS: Overall Project Structure
Figure 5: Overall Project Structure.

The project is directed into four levels where its level is in sequential manner to one
another. At each level, decomposition of task and decision making is vital in order to be
efficient in catering the objective of each level.
Level 1 : Kick Start Phase
Level 2 : Planning Phase
Level 3 : Execution Phase
Level 4 : Closing Phase
Objective : inform all departments of the problem
faced and hence call for general meeting

Conduct general meetings for all head of departments
and team meetings amongst project departments

Establishment of Project Management Team
Objective : detailed mapping of work breakdowns
Identifying problem and perform technical studies and
subsequently come up with feasible decision(s)

Objective : Carry out and implement technical tasks
Each department will respectively perform their tasks
in completion of scheduled work breakdowns

Objective : perform final checking on conducted
tasks
18

-
Establishing warranty period and test runs on
implemented decision
WBS: Tree-Structure Work Breakdown Level 2 : Planning Phase
Figure 6: Planning Phase Work Breakdowns For Energy Recovery Project.

The importance of the planning phase is to detailing job and tasks for department-incharge. The energy recovery project needs two major planning which is technical planning
and non-technical planning. As evident in Figure 6, technical planning dealt by EHS and
Engineering team where, technical/process based decision making will be carried out. These
group in charge of the process calculation, safety, Process Standard of Procedures (SOP) and
Safety Standard of Procedures. Whereas, the non-technical team, as the name suggests,
19

incharge of attaining contracts (Procurement Department) and managing finance flow
(Financial Department).
20
WBS : Tree-Structure Work Breakdown Execution Phase
Figure 7: Execution Phase Work Breakdowns for Energy Recovery Project.
21
Core objective of the project is recover energy and steam to reduce energy
consumption in the membrane press unit. Thus, the project was divided into two major parts,
as shown in Figure 7, notably Condensate Tank Reinstallation and Heating Coil Re-design.
The first part is removing the old tank and reinstalling a new condensate tank to store more
hot water (refer Figure 2 Flow Diagram in Chapter 3). This requires huge cooperation from
the EHS Department and Engineering Department. Both of these departments will run
through and contended to supervise the whole procedure to ensure the project is under
control.
Besides that, the second part in executing the project plan is to re-design and install
pipelines across the new Condensate Tank and heating coil of the Stearin Tank. As
aforementioned, this procedures requires the cooperation of most of the departments but
mainly dealt by Process Department, EHS Department and Contractors. These departments
will ensure the safety of the jobs and at the same time monitor the process of contruction of
pipes and installation of the new tank. The main objective is to test the installed equipments
and inspect it for any faultiness. Apart from that, retuning to the process flow safely from the
test run period is also crucial.
22
WBS : Tree-Structure Work Breakdown Closing Phase
Figure 8: Closing Phase Work Breakdowns for Energy Recovery Project.

In the Closing Phase, all the technical duties will be finished and must be given final
touches. The job will be more concentrated to SOP documentation for the new process flow
and rechecking it few times before finalising the process SOP. The Financial Department will
be handling payment settling to the contractor and third part workers and documenting it.
And for the contractors, warranty period sign off will be conducted in assurance of the
product safety and feasibilities. This step is important for any faultiness repair in the future.
23

4.2 ACTIVITIES ESTIMATES
Table 2: Activities Estimates Level 1 & 2.
WBS
1.0
2.1.
2.1.1.
2.1.1.1
.
2.1.1.1
.1.
2.1.1.1
.2.
2.1.1.2
.
2.1.1.2
.1.
2.1.1.2
.2.
2.1.1.2
.3.
2.1.1.3
.
2.1.1.3
Person-In-Charge
Person Supervi Departm
nel
sor
ent
Planning Phase - Task

Energy & Stream Recovery Project - Project Management
Kick Start Meeting
Mission & Objective Explanation
Team Member introduction & Job Allocation
Early phase
Whole
phases
Daily Team Leaders Meeting

Technical Planning
Engineering Team
3 day
Identifying & Analyse Problem

-
Collect data and spot the problem statement
Technici
an
Engineer
Process
Further studies on the developed problem statement

2 day
Propose & Select Proper Solution

-
Work
Estimate
Identify alternatives over problem statement

Comparisons of the set of solutions
Solution selection and justification
1 week
Implementing Selected Solution

- Execution phase (refer Execution Phase)
24

.1.
2.1.1.4
.
2.1.1.4
.1.
2.1.2.
2.1.2.1
.
2.1.2.1
.1.
2.1.2.1
.2.
2.1.2.2
.
2.1.2.2
.1.
2.1.2.2
.2.
2.1.2.3
.
2.1.2.3
.1.
2.1.2.3
.2.
2.2.
2.2.1.
2.2.1.1
.
2.2.2.1
.1.
2.2.1.1
.2.
2.2.1.1
2 days
SOP Documentation
-
Update the previous SOP for future references

Environment, Health & Safety Team
Safety Rules, Guides & Regulations
Impose rules and standards for involving parties (site
location)
Ensure rules are followed at all time (all Project
Development Phases)
1 week
Routine Check
-
1 week
Evaluation of safety level before/during/after installation

Daily report and logbook on safety level
Documentation
-
Safety report
Rules and regulation updates

Non-Technical Planning
Finance Team
1 week
Budgeting
-
Overall budget estimate
Getting paysheet from department

- Manage financial flow
25

.3.
2.2.1.2
.
2.2.1.2
.1.
2.2.2.
2.2.2.1
.
2.2.2.1
.1.
2.2.2.1
.2.
2.2.2.2
.
2.2.2.2
.1.
2.2.2.2
.2.
2.2.2.2
.3.
2 week
Pay Roll
-
Invoicing and paysheet

Procurement Team
1 week
Finding Contract
-
Getting input from Engineering Team

Bidding contract / finding suitable contractorcompany
2 week
Contractor Handling
-
Permit pass and security clearance

EHS department clearance
END
Paysheet to contractors
Table 3: Activities Estimates Level 3.
WBS
Person-In-Charge
Person Supervis Departm
nel
or
ent
Execution Phase - Task
26
Work
Estimate

3.0
3.1.
3.1.1.
3.1.1.1.
3.1.1.1.
1.
3.1.1.1.
2.
3.1.1.1.
3.
3.1.1.1.
4.
3.1.1.2
3.1.1.2.
1.
3.1.1.2.
2.
3.1.2.
3.1.2.1.
3.1.2.1.
1.
3.1.2.1.
2.
3.1.2.2.
3.1.2.2.
1.
3.1.2.2.
2.
3.1.2.3.
3.1.2.3.
1.
3.1.2.3.
2.
Execution Phase - by overall departments

Condensate Tank Re-Installation
Uninstallation of Old Condensate Tank
Isolation Procedure for Old Condensate Tank
Identify the process route, hazards and corresponding
energy sources
-
1 day
Technici
an
Engineer
Process
Shut down battery limit & secure all isolating points

Dissipate all stored energy in pipelines, valves and tanks
Verify and identify the area is safe

Detaching Old Tank
-
1 day
Ensure safety mount is on place
Detach the tank and transport it out

Installation of New Condensate Tank
1st Lining-Up Procedure for Process Route
-
1 day
Ensure all valves, pipelines in proper process route
Ensure all energy sources are isolated

Installation of New Tank
-
1 day
Transport the new tank into position
Mount the tank on girders and connect the pipelines

2nd Lining Up Procedure
-

Clear locks and tags of the isolation points
27

13.1.2.3
.3.
3.1.2.4.
3.1.2.4.
1.
3.1.2.4.
2.
3.1.2.4.
3.
3.1.2.5.
3.1.2.5.
1.
3.1.2.5.
2.
3.1.2.5.
3.
3.2.
3.2.1.
3.2.1.1.
3.2.1.1.
1.
3.2.1.1.
2.
3.2.1.1.
3.
3.2.1.1.
4.
3.2.1.2.
3.2.1.2.
1.
3.2.1.2.
2.
3.2.1.2.
Ready the process route for start up procedure

Dry-Run Procedure
-
1 day
Start-up procedure for the tank is ensured

Identify leakage point in the pipeline joints and new tank
Monitor battery limits and control variable

Returning New Condensate Tank to Process Flow
-
Fill in tank with condensate water

Monitor operating conditions, battery limits and control
variables
-
Return to process flow

Heating Coil Re-design
Pipeline Construction from New Tank
Isolation of Membrane Press Unit
Identify the process route, hazards and corresponding
energy sources
1 day
Shut down battery limit & secure all isolating points

Dissipate all stored energy in pipelines, valves and
equipments
-

Pipeline Construction
-
1 day
Detach the existing pipeline & build the new pipeline
Ensure flow route is correct

- Connect the pipelines from new tank to membrane press
28

3.
3.2.1.3.
3.2.1.3.
1.
3.2.1.3.
3.
3.2.2.
3.2.2.1.
3.2.2.1.
1.
3.2.2.1.
2.
3.2.2.1.
3.
3.2.2.2.
3.2.2.2.
1.
3.2.2.3.
3.2.2.3.
1.
3.2.2.3.
2.
1 day
Dry-Run With Condensate Water

-
Start-up procedure for the press unit is carried out

Monitor leakage point in the joints and equipments &
battery limits
Steam Recovery & Condensate Flow Checking
Applying Stream Flow to Coil
-
1 day
Apply new condition limit to control variable

Ensure leakage and other unwanted incident is not evident
Direct the process with fully condensate water

Test Run Procedure With New SOP
-
Dry-run using new SOP

Returning Membrane Press to Process Flow
-
Monitor battery limits and control variable

END
Return to process flow
Table 4: Activities Estimates Level 4.
WBS
4.0
4.1.
4.1.1.
4.1.1.
1.
Person-In-Charge
Person Supervi Departm
nel
sor
ent
Closing Phase - Task
Work
Estimate
Energy & Stream Recovery Project - Closing Phase

Process Flow
Dry Run & Problem Identifications
-
1 day
Test Run with new parameters with new SOP

29

4.1.1.
2.
4.1.2.
4.1.2.
1.
4.1.3.
4.1.3.
1.
4.1.4.
4.1.4.
1.
4.2.
4.2.1.
4.2.1.
1.
4.2.1.
2.
4.2.2.
4.2.2.
1.
4.2.2.
2.
4.2.3.
4.2.3.
1.
4.3.
4.3.1.
4.3.1.
1.
4.3.1.
2.
Identify problem - Punchlists

SOP Documentation
Identify change in procedure , Update in new SOP & Verify
the SOP
Closing Punchlists
Resolve Punchlists & Repeat Dry Run , Verify that punchlists
are resolved
Documentation
-
Enginee
r
Process
1 week
1 week
1 week
Punchlists and its solutions - documentation

Financial Issue
Payoff to Contractors
-
Technici
an
2 days
Periodical Payoff according to job completion
Total Payoff & Payment Slip being signed off

Account Clearance
-
5 days
1 week
Close debit and credit accounts for project

Settle payoffs & Verify Account Clearance from Project
Manager
Documentation
Document account clearance
Contractors
Warranty Sign Off
-
Establish Warranty period with contractors company

Sign Off agreement & document verification by GM
30
1 day
END

4.3 WORK SHCEDULE
In this section, compartments from section 5.1 and 5.2 will be concluded in one
manageable table called Ghant Chart. Ghant Chart is used to plan out the tasks that need to be
finished. It also gives basic tracking and scheduling when sub-tasks in progress. Ghant chart
is also helpful in determining the critical path or to prioritize the work breakdowns in order so
that the particular project will be completed by a particular date. In short, Ghant chart is to
help the management team to monitor the work progress of a project and allows to pin-point
critical and remedial action needed to fix off-target tasks back into the schedule (Manktelow
& Clarkson, 2011).
As shown in Figure 9 below, the chart is based on the Activities Estimated presented
in section 5.2. Each subtasks person in charge, supervisor and departments involved are well
detailed in the section. In latter figure, Activities Estimates are presented with timeline and
tracking module so that monitoring of the project is evident and efficient. The core of the
Ghant Chart is the Work Breakdown Structure (WBS) given in section 5.1., where levelling
of the tasks is clearly noted according to the phases (4 phases). This chart will be filled by the
Project Leader (General Manager) and will be reported by Head of Departments on daily
basis during the Progress Meeting.
As apparent in the chart, each task is highlighted based on its importance and
dependency of the task to other sub-component of WBS. It is given priority of Crucial,
Important and Post-Requisite based on which task should be preceded first. Completion
of Level 1-4 (Kick Start, Planning, Execution and Closing) is based on the progress of subcomponent of WBS. Each task is monitored by Days Complete, Days Remaining and
% Complete for better understanding of the status of the task. Above that, each phase is
given fixed duration as stated in Duration (Days) column in the Ghant chart.
31
Figure 9 Ghant
Chart
32
5. Financial Breakdown
5.1 Financial Management
The finance management for this project can be divided to 4 main teams which are general
accounting, financial planning, financial control, and treasury. The functions of each team are
explained below
a) Financial Planning and Control
- Prepare financial planning and budgeting
-To perform check or balancing financial data and account reconciliations
b) Treasury
-To managing the funding activities
c) General Accounting
-For general accounting functions
Finance
Manager
General
Accounting
Financial
Control
Treasury
Senior Accountant
Finance Analyst
Payroll
Coordinator
Accountant
Figure 10: Organization Chart for Finance Division.
33
Job scopes of each of the personnel involved are shown in the table below:
Table 5: Jobcopes of personnels from Finance Team.
Finance Manager
Ensure that all finances are properly administered and monitored,

including credit control.
Senior Accountant
Prepare financial statements and supporting schedules according

to daily close schedule
Analyse revenues, commissions and expenses to ensure they are
recorded appropriately
Accountant
Assist in documentation and monitoring of internal controls
Finance Analyst
Interpret data affecting investment programs, such as price of the

heating coil and condensate storage tank
Payroll Coordinator
Coordinates the daily operation of the projects payroll system;

review all additions, deletions and changes in payroll
information for accuracy.
Figure 11: Road Map for Financial Management.

34

1. Installation And Construction Contract Terms And Conditions (T&C)
One week after receiving the contract, the Project Manager (PM) is responsible to go
through the contract and ensure the project execution in compliance with established
rules. The project manager should receive the related information from procurement team
with the contractual documentation given during the project hand-off.
PM is responsible to read the contractual T&Cs.
PM should proceed to the contract assignment to the identified Cargill legal entity and
inform to the finance team about the identified Cargill legal entity for the Installation and
Construction project execution.
It is a mandatory for the PM to complete the contract checklist and dashboard

summarizing the information.
IM have to verify the contractual T&Cs clauses & obligation related to:
- LOC (issuing date, amendment value, expiring date)
- Bank Guarantee/Performance Bond amount
- Fixed exchange rate
- Contract Stamp Duty
- Taxation Rules inside country
- Customer request on Field Service Engineers (FSE) Insurance Certificate
2. Project Costs Analysis & Project Budget, Sales Convertibility Plan
One week after the verification of the Installation and Construction Contract T&Cs,
Project Manager (PM) is required to review the available information and determines
with the Finance Team the budget costs estimation, budget sales and cost control for the
Project Execution and plans the review meetings (begins when Project Manager engaged
to job until Commercial Operation Date (COD))
PM is also responsible to:

- Verify the associated hourly costs to each FSE depending on Cargill employee and/o
External FSEs Companies
- Verify the planned daily working hours.
35

- Verify FSEs VISA application & Work Permits cost.
- Verify boarding & lodging, connectivity at site and local transportation costs.
- Verify costs for Business, Company & Personal Income Taxes.
- Issue the Finance team the Cost-tracking sheet to be reviewed.
3. Timesheets & Timecards Collection And Tracking
In this phase, PM receives the FSEs timecards with the approved timesheets for a job
at site. PM is responsible to approve the timecards and match the timecards &
timesheets hours. A mismatch in hours between the timecards timesheets has to be
escalated and analysed by Operations & Maintenance team that will also evaluate the
corrective actions.
FSE's inputs the hours worked at the site in SAP (Management Software) by
completing the timecards. These timecards have to be approved by the PM or, if not
present, by the Assistant PM.
4. Saps Cost Tracking

FSEs hours on timesheets & timecards are referred to a SAP and not billable to customer.
PM is responsible to:
Report to General Manager (GM) with all documentation about FSEs hours related
with SAPs resolution to be allocated on associated Costing Project.
Inform and request to Finance Team the cost transfer in SAP.
5. Activity Invoicing, Documents Collection & Past-Due Invoices
PM collects documentation from site according to Contractual T&Cs with customer.

PM responsible to prepare all documentation for invoicing purpose to customer
according to Contractual T&C and forward them to Treasury team as well. PM will
support the cash collection and monitor progress on project sales total amount.
6. Financial Reporting, Risk & Opportunities/Change Orders
Finance Manager is responsible to perform the daily review on the Installation and
Construction Project Plan with Finance Team and Contract Administration and
prepare all documentation to be submitted to the Project Manager.
36
5.2 COST ESTIMATION

A Cost Estimate is a prediction made on the cost of doing a project which then submitted
to the client or owner as the basis for approving a budget for the project. A budget is the
maximum amount of money allocated by the project owner to be spent to complete the
project. Budget information will be used by the designers as a guide to design project and
also by the project managers for controlling expenditure during construction. There are some
factors that may affect the project cost such as size of project, location, ease of supply of raw
materials, availability and cost of labor (depend on time of year and region), access to site
and working space, job market condition and contractors profit margin. Good cost estimation
is important as this may avoid overestimate or underestimate in the cost for that project.
There are few techniques used to estimate the cost for projects, which are as shown below:
1)
2)
3)
4)
5)
6)
Expert Opinion
Analogy Estimate (or Ratio Estimate)
Parametric Estimate
Lang Factor
Cost Indexing
Analytical Estimating
The technique used for this project is expert opinion and analytical estimating. Expert
Opinion technique is used during the initial stage of the project development where the cost
estimate is based on the figure given by an expert. Meanwhile analytical estimating technique
is detailed cost analysis of individual work packages, task or activity associated with the
project. (Idrus, Shaharin, & Mohd, 2010).
5.2.1
EQUIPMENT COST
The cost breakdown is shown as below with using analytical estimating method:
Table 6: List of equipment cost.
Unit
Quantity
Price (RM)
Hot Water Tank
1 Unit
25,000.00
Piping & Fittings
1 Set
8,500.00
Pipeline Beam
1 Set
1,000.00
Electrical Main
1 Lot
1,000.00
37

Control
Panel
Total
35,500.00
A) Electrical Field Wiring Installation Cost

Vendor will provide electrical contractor to do the field wiring of all equipments that include
in out quotation. All material, labors and tools will be provided and included in our price.
Based on our calculation, we need nearly 2 hp of output power and 3-phase motor working at
415Volt.
Total electrical field wiring installation cost = RM 1,000.00
B) Mechanical Installation Cost
Vendor will provide an installation crew to carry out the mechanical installation work for the
equipment supplied.
Total mechanical installation cost: RM 1,000.00
5.2.2
CONSTRUCTION MATERIAL COST
Total component cost = Equipment costs + wiring installation cost + mechanical installation
cost
= RM 35,500.00 + RM 1,000.00 + RM 1,000.00
= RM 37,500.00
5.2.3
SERVICE COST
Service cost is a cost that is incurred when external services are used in the project. The
services may include equipment/devices rental, hiring specialist, license cost, and other
38

technical costs that are not available internally. The table below shows the cost for services
incurred.
Table 7: List of service cost.
Service
Duration
Cost per day
Cost
2 Days
RM 2,000.00
RM 4,000.00
Crane Rental
Total
5.2.4
RM 4,000.00
LABOUR COST
Contractors are the workforce that would be handling and doing necessary work for the
condensate water recovery tank and pipeline to membrane press installation. There are many
contractor companies specializing in various work fields that we had to appoint in order to
install the tank. The selection of contractors for the work is a very critical task. The decision
made on appointing contractors will affect the overall cost and duration of the entire project.
Appointment of contractor according to specialization works are as follows:
Table 8: List of labour cost.
Contractor
Work
Estimated
Number
Number
Total
Description
Cost
of
of
Cost
of
manpowe
Day/s
(RM)
manpower/da
y
Durga
Mechanical
Engineering
Installation
Sdn.Bhd
PLS Sdn.Bhd
work
Electrical
RM 50.00
1,750.00
RM 70.00
280.00
Installation
work
Total
5.2.5
2,030.00
TRANSPORTATION COST
39

Equipment which needs transportation will incurred cost. It is usually based on weight and
distance between source locations to the project site. These following:
Table 9: List of transportation cost.
5.2.6
Equipment
Total Cost (RM)
Hot Water Tank
2,500.00
Pipe & Fittings
950.00
Total
RM 3,450.00
OVERALL PROJECT COST

Table 10: List of overall cost.
Type of Cost
Cost (RM)
Construction Material
37,500.00
Cost
Service Cost
Labour Cost
Transportation Cost
4,000.00
2,030.00
3,450.00
Total
46,980.00
As overall cost for this project is RM 46,980.00 (Forty six thousand and nine hundred eighty
ringgit Malaysia only).
6.0 ENVIRONMENT, HEALTH AND SAFETY (EHS)

6.1 EHS MANAGEMENT
Site activities usually involve both headquarter personnel (Manager) and field personnel (Site
Manager, Technical Advisors, Subcontractors). Duties and responsibilities of each involved
figure are explained below. Some of the objectives of EHS Management are:
a) Promote a safe and healthy work environment for people at work that protects them
from injury and illness
40

b) Prevent and minimize a persons exposure to the risk of death, injury or illness caused
by workplace or work activities
EHS Manager
EHS Coordinator
Site Manager
EHS Supervisor
Workers
Subcontractor
Figure 12: Organization Chart of EHS Department

EHS Manager:
The Manager coordinates all the operative activities to ensure that they are carried out in
respect of contract terms. He reports directly to the plant manager, with strong dotted line
reporting to the Regional EHS Director assigned to that division(s).
Within his authority, the Manager:

Lead development of facility strategic EHS Plan. Work with plant manager and staff
to implement and execute plan
Maintain EHS compliance calendar, and ensure required activities occur to maintain
facility EHS compliance
Maintain and monitor effectiveness of EHS inspections
EHS Coordinator
41

The EHS Coordinator will lead the strategic development of company safety, health and
environmental program to be compliant with all standards, policies and regulations. He will
report to the EHS Manager. Some of his duties are:
Assess EHS measures to ensure effective and proactive programs are in place to
enable the business to achieve a zero incident safety culture.
Audit EHS programs for compliance with Business Unit, Corporate and Regulatory
requirements.
Champion a culture of accountability, stakeholder engagement and the development
of a sustainable EHS program
Site Manager
Site Manager is the person specifically in charge and responsible for activities carrying out,
management and check. Site Manager is responsible to ensure carrying out of all service
activities in the site in compliance to contract obligations.
In summary, the main responsibilities of a site manager are:
To entrust duties to workers according to their ability and psycho-physical conditions
To control the progress of EHS actions and plans
To update prevention measures according to organisation and productive changes
Training of employees on EH targets
Ensure that all the directives are followed, methods & tools (PPE) & EHS plan in
place.
EHS Supervisor
He/she is to the dependences of the Site Manager and his/her main duties are:
Cooperate with the Site Manager in the management of the Safety Operative Plan to
verify that the Safety Operative Plan is respected
To participate in the coordination safety meetings required by the customer
42

Held weekly EHS coordination meetings to NP personnel and to Contractor site
managers or to contractors EHS safety manager
To verify the correct EHS training of the personnel at site
To compile the site EHS reports
Workers
All Cargill Plant operative personnel are under the Site Manager. Each worker, according to
laws in force, takes care about safety of himself and of other persons present in the work site,
on which his actions and omissions can fall upon, compliant to his training, his instructions
and devices supplied from the employer.
Obligations are:
To observe dispositions and instructions given by the employer, managers and Site
Manager, concerning collective and personal protection
To use in a proper way machinery, equipment, tools, hazardous substances and
preparations, means of transport and other work equipment, as well as safety devices.
Subcontractors
The subcontractors must be previously authorised. In this case Cargill must transmit to him
the information and dispositions received from the Customer. Subcontractor Company
cooperate to the actuation of prevention and precaution measures against work injuries risks,
concerning the activity object of the Contract.
Operatively, each Subcontractor must:
Arrange a specific Safety Plan before starting works, compatible and integral to EHS
Manual
Inspect regularly Site areas, when the Site is open, to find eventual presence of hazard
conditions and propose/carry out immediately necessary corrective actions.
6.2 SAFETY AND HAZARD IDENTIFICATION

Safety is a crucial factor in all industries and all the employees of the industry should be
exposed to all the safety rules involving around them to avoid any harmful and dangerous
43

situations, which can impact the individual and also the industry. Below shows the basic
safety rules and regulations being imposed in CARGILL:
GENERAL SAFETY RULES
Smoking is not allowed inside the premises/plant area. Smoking is only allowed in the
designated smoking area.
Whenever someone enters the plant area, he will be required to use all applicable PPE
Hard Hat, Safety Glasses, Safety Boots, Proper Clothing
Mobile phones are not allowed into the plant and must be left in the control room
Any work to be done in the plant will be done according to company permit to work
procedure. It will be the responsibility of the shift supervisor to issue a permit for all jobs to
be done in the plant
The taking of pictures will only be allowed under hot work permit conditions
Upon hearing the sound of the emergency alarm, all work should stop and emergency
procedures must be followed
Vehicles may only enter the plant area if a vehicle permit is issued and the vehicle is
accompanied by a field operator
Eating food stuffs or drinking any liquid in the plant area is strictly prohibited
Always wear prescribed PPE when handling chemicals
Whenever working with chemicals ensure to be aware of the risks and contents of the MSDS
Gas cylinders must always be properly fastened to ensure it will not fall over
Full gas cylinders should be stored separately from empty ones
Ensure to replace empty and used gas cylinders immediately after use
Empty gas cylinders must be allowed to accumulate on the plant. When a cylinder is empty it
should be taken to stores immediately
It will be the responsibility of each operator to do housekeeping and ensure his area is clean
after completion of any job
Precautions from the workplace hazards are important factors when an individual
working in a plant especially as they will exposed to various dangerous and hazardous
situations. Lack of knowledge on safety or HSE rules can cause serious and deadly
accidents or health problems, such as;
Table 11: List of safety rules.
SOURCE
Accidents happen due to faulty electrical installations
(cables, plugs, equipment)
44
CAUSES
shock and burns
fires
ignition of potentially
Accidents happen because of lifting equipment which is

not inspected and not maintained regularly
Accidents happen as a result of lack of maintenance of
working surfaces/traffic routes
Dust poses a potential health risk to workers
flammable
explosive atmospheres
causing heavy load to fall
uneven, potholed
sloped or slippery surfaces
slips and trips
unhealthy situations
(cough, sneezing, flu)
Machine Safety/ Equipment Usage

The general rules regarding machine safety and equipment usage are found in OSHAs
Rules and Regulations. These regulations have general requirements for all machines and
equipment and very specific requirement for particular machines and equipment. The
rules being designed in the company/plant are to be followed to:
Provide a safe working environment

Govern operator use of machines and equipment
Ensure proper care and maintenance of machines and equipment
All the employees of the plant (CARGILL) that deals with this project directly should
undergo safety training, operation and maintenance practices, so they have the basic
safety and operation knowledge on how to deal with machines and equipments. Only
authorized and trained personnel (technicians, engineers and etc) permitted to operate
machinery or equipment at any time (including during all the phases of the project).
HANDLING OF HEAVY LOADS BY LIFTING MACHINE/WORKERS
Most of the working environments, manual handling the loads by workers can cause
cumulative disorders due to gradual and cumulative deterioration of the musculoskeletal
system through continuous lifting/ handling activities besides causing low back pain and
acute-trauma (cuts, fractures due to accidents). The factors causes those injuries to the
workers can be summarized as below:
load is too heavy

difficult to grasp or unstable
involving awkward postures or movements
working environment lacking sufficient space, slippery
45
failure of slings, chains, rope

failure of securing point of load
failure of lifting equipment
crane or other equipment toppling
swinging load
people being in the wrong place, not due to the equipment
Due to the high risk, CARGILL require the employers to carry out risk assessments and
take action to protect workers from the risks of manual handling where the prevention
measures include:
to avoid manual handling, specific tasks being designed and organized

use machine lifting/ automation lifting the equipments
the loads is being split into smaller portion and proper rest period is given to the
employer
providing information and training to workers on tasks, and the use of equipment
and correct handling techniques
Besides that there are some guidelines when lifting load from ground level which are:
place the feed close to the load almost 8-12 inches apart (when lifting maybe
pipelines, pumps, valves)

bend knees to the degree comfortable and get a good hand hold using both leg and
back muscles, lift the load and keep the load close to the body
PORTABLE AND MOBILE TOOLS

The size, weight and power of mobile machinery used in Palm Oil Fractionation Column
and Condensate Tank installation presents significant hazards to people and equipment in
its area of operation. The prime reason for these hazards is the supervisors restricted
view of the surroundings and the consequent range of vision shadows or blind spots in
which people and objects (equipments) can be hidden from the sight. According to the
project, the most common personnel exposed to these risks are such as site supervisors,
technicians, engineers and contractors.
ELECTRICAL
OSHA and state safety laws have helped to provide safe working environments for
technicians who deal with electrical materials. Individuals can work safely on electrical
46

equipment with todays safeguards and recommended work practices. One of the safety
steps can be taken is:
using a ground fault circuit interrupter (GCFI), an electrical device which protects
personnel by detecting potentially hazardous ground faults and quickly
disconnecting power from the circuit. As can be seen, from this project, the
electrical technicians dealt with lots of electric matters whenever a new
Condensate Tank being installed and during the modification of the Fractionation
Column
Most of common accidents occur regarding to Electrical aspect will be electrical shock,
the cause of this incidents because of the current that passes through human body exceeds
the allowable limit, below shows the detailed explanation of the effects from electrical
shock:
Table 12: List of effects from electric shock.
Reading
s
Safe
Current
Values
Effects
1 mA or less
Causes no sensation - not felt.
1 mA to 8 mA
Sensation of shock, not painful;

Individual can let go at will since
muscular control is not lost.
Painful shock; individual can let go at will since
muscular control is not lost.
8 mA to 15 mA
Unsafe
current
values
15 mA to 20 mA
Painful shock; control of adjacent muscles lost;

victim cant let go.
50 mA to 100 mA
Ventricular fibrillation - a heart condition that

can result in death - is possible.
100 mA to 200
mA
Ventricular fibrillation occurs.
200 mA and over
Severe burns, severe muscular contractions - so

severe that chest muscles clamp the heart and
47

stop it for the duration of the shock.
(This prevents ventricular fibrillation).
WORKING AT HEIGHT
Basically work above 2 meters used to be considered the height from which persons
should be protected from falling and the statistics also proves that many major injuries
result from falls from heights of less than 2 meters. Especially for this project, the
membrane fractionation column is located in a higher place which required the
technicians to work in a place which is higher than 2 meters. Physical barriers are the
preferred method of preventing a person/ individual from falling from height and example
of physical barriers can be said as Edge Protection Systems and Fall Protection
Systems.
Table 13: List of physical barrier method.
PHYSICAL BARRIERS
Edge Protection Systems
Fall Protection Systems
DESCRIPTION
Barriers that erected around the edge of a building,
structure or hole.
Consists of Guard Railing (working platforms,
walkways, stairways, ramps and etc)

Protective structure placed over holes and openings
to prevent falls
minimize the risk of a person falling from a height
and injury to a person after they have fallen from
Personal Fall Protection

-
height
examples are A Travel Restraint Device and A
Fall-Arrest System
EMERGENCY FIRST AID

Personnel at work can suffer from injuries and accidents because they are the individuals
who face the risk directly and it doesnt matter whether the injury or illness is caused by
the task being performed by them or not. For an example, discussing about the project,
dealing with larger amount of heat and heated materials, steels, and heavy loads, the risk
of being injured were just around the corner until the project accomplished. As a
precaution, the HSE Department of the company should:
48
suitably stocked first-aid box in high risky areas or reachable areas whenever any
emergency
appoint a person to take charge of first-aid in the site especially during the project
the person in charge should give sufficient information for employees about the
first-aid arrangements
Besides treating the individuals who injured with the First Aid box, there is another
method of helping an individual who passed out in the spot which is CPR and this contain
main 3 components in performing CPR; Airway, Breathing and Circulation (known as
ABC technique). An important factor here is blocked airway can quickly lead to
suffocation and possibly cause death.
PERSONAL PROTECTIVE EQUIPMENT (PPE)
Protective Clothing
Safety Helmet
Safety Goggles
Safety Boots
Figure 13: Personal protective equipment (PPE).
49
50

6.3 SAFETY AND HAZARD ROUTINE
6.4
6.5 Figure 14: Safety form for coil fabrication.
6.6
6.7
6.8 Figure 15: Safety form for new tank fabrication.
6.9
6.10
6.11
6.12
6.13
6.14
6.15
Figure 16: Safety form for working in confined space.

6.16
6.17
6.18
6.19
6.20
6.21
6.22
Figure 17: Safety form for working at height.

6.23
6.24
51
6.25 7.0 DISCUSSION

6.26
Based on the economy, efficiency environmental, health and safety of the
Energy and Steam Recovery Project in Palm Oil Fractionation Membrane Press, it is viable
that this project is carried out because of the long term benefit which is obtained. While
performing this project, the tasks were well distributed equally to the technical and non
technical departments. Proper coordination and organization is on both departments to ensure
the goal of the project is achieved on time. The project consists of 2 major parts which are the
Condensate Tank Reinstallation and Heating Coil Re-design. The technical department could
be divided into the Engineering Team and the Environmental, Health and Safety Team. The
technical department handles mostly on the hands-on, designing, maintenance and installation
works which is carried out throughout the period of the project. The technical team are
involved in most of the work from identifying the problem statement, research, project
proposal, finding possible alternatives as a solution, selecting the best solution, executing the
solution and maintenance. This clearly reflects on the importance of having the technical
department in the plant. The non-technical department are equally as important as the
technical department, but it is not involved as often as the technical team. The non-technical
department includes the Financial Team and the Procurement Team. The non-technical
department is entangled with jobs like handling the budget, finance cash flow throughout the
project and looking for feasible contractor tenders that would help get the project done on
time. The tasks that are carried out by the non-technical department are mostly objected to
support the technical department to achieve the project goal on time. Basically the success of
a project lies on the proper communication and task coordination from the technical and nontechnical department. To ensure that the work flow of both departments is smooth,
supervisors are appointed to monitor the progress of each department. The Project Manager is
appointed to monitor the progress of the technical and non-technical department to ensure
that the goal of the project is reached on time. Gantt Charts and proper work breakdowns are
planned and done to be set as guidelines to all the staffs involved in the project to make sure
that the project is completed on time.
6.27
The non-technical department, especially the financial team would have to
come up with cost estimation or in other word overall project budget, to give a guideline on
the finance that would be required to get the project done. It is just an estimation of the cost,
where the real cost could differ from the estimation due to time and other needs. However the
52

technical and non-technical department would have to find alternatives if possible to maintain
the project under the budget proposed. The budget is usually planned based on the current
details of the vendors, utilities charges, transportation charges, service and labor charges and
also the cost of the materials used. The overall cost estimation for this project is RM46,
980.00 which is a feasible figure. If the project is carried out successfully, it may be
beneficial to the plant as a long term effect, as energy and steam is recovered in the process.
This project involves the contractors and vendor from outside which are specialist in what
they do. The vendors are selected by the non-technical department based on the work quality
assurance and the quotations given by the vendors. The vendors that were best selected for
carrying out this project are Durga Engineering Sdn.Bhd for the mechanical engineering
works and PLS Sdn.Bhd for the electrical engineering works. Both vendors are chosen for
their best deals and quality assurance. The project requires lifting of heavy materials to a
certain height. For this purpose, a crane is rented for a period of about 2 days to get the heavy
lifting jobs done. To make sure a steady cash flow during the project, there would be a
hierarchy in the finance team to get the jobs done. The Finance Manager ensures that all
finances are properly administered and monitored, including credit control. The Senior
Accountant prepares financial statements and supporting schedules according to daily close
schedule. Also the Senior Accountant would have to analyze revenues, commissions and
expenses to ensure they are recorded appropriately. The accountants would have to assist in
documentation and monitoring of internal controls. The Financial Analyst has a task of
interpreting data affecting investment programs, such as price of the heating coil and
condensate storage tank. Finally the Payroll Coordinator has to coordinates the daily
operation of the projects payroll system; review all additions, deletions and changes in
payroll information for accuracy. This hierarchy is maintained throughout the term of the
project to smoothen the flow of the project.
6.28
When commencing with the work of fabricating and reinstalling the
condensate tank and heating coil, it involves a lot of heavy and hands-on work. This
would probably cause some accidents that might be fatal and leave behind severe
injuries. The Environmental, Health and Safety team is required to analyze the hazards
that could occur and set up proper Standard Operating Procedures that could be the guide
for everyone workers present in the project field to maintain a safe and healthy work
station. The Environmental, Health and Safety team had to set up a few general rules
when carrying out certain works procedures in the project field. Most of tasks requires
53

using accident prone equipments and working at extreme conditions that would easily
cause accidents. When fabricating the tank and the heating coil, the worker would have to
use the welding equipments which are hot equipment that could easily cause burns and
casualties among workers. The project would also require workers to work in confined
spaces and at a certain height that could cause serious accidents, if not careful. The
Environmental, Health and Safety department takes into account all the possible hazards
in the workstation and is required to set up a guideline or rules that should be followed by
the workers in the project field to avoid injuries and casualties. The department is also
responsible in providing sufficient training to the workers involved to acknowledge them
on the hazards that would probably occur and the possible actions and solutions that
should be taken in case of accident. Proper personal protective equipments that meet all
the industrial safety standards must be supplied to the workers in the project field to
ensure the safety. A supervisor would be appointed in every part of the project field to
update the checklist if the workers fully utilize the personal protective equipments
supplied. These acts are important to maintain a safe workstation that does not harm
anyone and the Environmental, Health and Safety is solely responsible for all the safety
practices in the plant.
6.29
6.30
6.31
6.32
6.33
6.34
6.35
6.36
6.37
6.38
6.39
54

6.40
8.0 RECOMMENDATION
6.41
6.42
There are few recommendations that is indentified in this project that could further
improve the productivity of the plant and could also safe the costs. The suggested
recommendations are as follows:
1) Reuse steam coil
6.43
The same steam coil could be used instead of fabricating a new once for the hot water,
but with certain improvements like connecting the hot water to flow into the coil. If the
hot water flown is not sufficient to melt the cake, the hot water could be replaced with the
steam flow with a little adjustment on the valve. But at the steam line, it is advised to fix
a check valve so that the hot water will not flow into the steam pipeline which will affect
the steam pipeline in most of the plants.
2) Use a smaller tank.
6.44
A smaller hot water tank is fabricated which has the capacity that suits the amount and
flow rate of the hot water needed to melt the Stearin. This can save cost on fabricating a
larger tank.
6.45
6.46
6.47
6.48
6.49
6.50
6.51
6.52
6.53
55

6.54
6.55
6.56
9.0 CONCLUSION
6.57
As overall, in this project we have achieved the objective which is to save
energy by reducing the steam consumption in the plant and recycle the hot condensate water
from the plant. Moreover, by doing this project, we have gained some important knowledge
on Project Management where we have learned about work breakdown, cost estimation,
safety issues and work schedule in completing a project. Besides that, this project has
managed to cultivate good team work among the members of the group in order to complete
the project together as a team. Team work is very essential in an organization. Furthermore,
this project gives good exposure to the students so that they are aware with a real situation of
working life where many things need to be taken into consideration including obeying the
companies rule and also the Health, Safety and Environmental (HSE) implementation.
6.58
10.0 REFERENCE
6.59
[1] Internship in Cargill, Hot water recovery project.
6.60
[2] Manktelow, J., & Clarkson, A. (2011, November
3). Gantt Charts : Planning and scheduling more complex projects. Retrieved December
18, 2011, from MindTools: http://www.mindtools.com/pages/article/newPPM_03.htm
6.61
[3] Matthis, M. (2000). Work Breakdown Structure:
Purpose, Process and Pitfalls. Retrieved December 17, 2011, from Project smart:
http://www.projectsmart.co.uk/work-breakdown-structure-purpose-process-pitfalls.html
6.62
[4] Plant Isolation Procedures - Lckout, danger And
Out-of-Service Tag. (2005, April). Retrieved December 17, 2011, from Safework South
Australia: http://www.safework.sa.gov.au/uploaded_files/gs64i.pdf
6.63
[5] Procedure For The Isolation Of Machineries and
Equipments. (2008, March). Retrieved from Monash Unversity - OSHA:
http://www.monash.edu.au/ohs/topics/procedures/isolation-of-equipment.pdf
6.64
[6] A Procurement Analyst Job Description. (2011).
Retrieved
December
17,
2011,
from
www.procurementcrossing.com:
http://www.procurementcrossing.com/article/1330052/A-Procurement-Analyst-JobDescription/
6.65
(2008).
Retrieved
[7] Finance Department Organizational Chart.

December 17, 2011, from sireweb.ci.richmond.ca.us:
56

http://sireweb.ci.richmond.ca.us/sirepub/cache/2/j21gvgbrh10ky0m1fak5kx55/65259121
62011073928573.PDF
6.66
[8] Financial Managers, Branch or Department
Tasks Performed. (n.d.). Retrieved December 17, 2011, from www.insurancejobs.com:
http://www.insurancejobs.com/financial-managers-branch-department-jobdescription.htm
6.67
[9] HSE Manager Job Description. (2005, January
1). Retrieved December 17, 2011, from http://www.kharafinational.com:
http://www.kharafinational.com/kn/career/uae/HSE%20Manager.pdf
6.68
[10]
INSTRUMENT
ELECTRICIAN.
(2010,
December). Retrieved December 17, 2011, from www.antarctica.gov.au:
http://www.antarctica.gov.au/__data/assets/pdf_file/0006/20895/Instrument-ElectricianJD-2012-_Updated-081210_.pdf
6.69
[11] Hazards and Risks Associated with Manual
Handling in the Workplace. (2010). Retrieved December 17, 2011, from osha.europa.e:
http://osha.europa.eu/en/publications/e-facts/efact14
6.70
[12] First Aid at Work. (2011, September). Retrieved
December 17, 2011, from www.hse.gov.uk: http://www.hse.gov.uk/pubns/indg214.pdf
6.71
December
17,
2011,
toolbox.com/Safety/safety.htm
[13] Electrical Safety. (2000, April 7). Retrieved

from
www.elec-toolbox.com:
http://www.elec-
6.72
6.73
6.74
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VAB 4042/VBB 4043 Engineers in Society

Recommendation and Conclusion.

VAB 4042/VBB 4043 Engineers in Society

........................................................................... ................................. iii

Work Breakdown Structure..........................................................................17

6. ENVIRONMENT, HEALTH & SAFETY

Safety & Hazard Identification

Safety & Hazard Routine

VAB 4042/VBB 4043 Engineers in Society

VAB 4042/VBB 4043 Engineers in Society

Figure 1: Location of Cargill business around the world.

Take input directly from a sensor and provide a control function.

Interface with plant digital communication systems.

ii) Turflow Heat Exchanger

c) Temperature Control valve at pipe fittings after stearin tank

Process Flow of the Project

Figure 2: Process flow the Hot Water recovery project.

Table 1: Label of Hot Water recovery project.

VAB 4042/VBB 4043 Engineers in Society

Figure 3: Organization chart of the overall project.

VAB 4042/VBB 4043 Engineers in Society

Figure 4: Organization chart of the engineering department.

VAB 4042/VBB 4043 Engineers in Society

The main objective of this department is to plan, execute and

finalize projects according to strict deadlines and within

Significantly for this project, Project Department is the in

Personnel who acquire resources and coordinate the efforts of team

For an instance, for this project (Palm Oil Fractionation (POF)

Mechanical Engineer, etc) to complete the project.

Job of Secretary of Project Department doesnt involve several

all documentation, and also organizing project meetings and work

Establish warranty period with contractors company

VAB 4042/VBB 4043 Engineers in Society

This is a team consists of all the departments that involve

VAB 4042/VBB 4043 Engineers in Society

*Refer to Chapter 9.1

perspective. For an example:

identify alternatives over problem statement and further studies

on the developed problem statement

Basically this departments duties will be on planning and

functioning equipment (either static or rotating equipments).

Department will oversee the installation of the condensate tank and

Development of wiring and installation drawings for electrical

plant and the maintenance procedures regarding the utilities as to

VAB 4042/VBB 4043 Engineers in Society

This department involves two areas of disciplines, Quality

reviews of site purchase orders (tanks, pipelines, etc) to ensure

that the applicable requirements are met

*Refer to Chapter 9.1

*Refer to Chapter 9.1

administrative, technical and professional work that related to

prepare specifications, negotiating service contracts and large

consultancy/service company to provide service for this project

and procurement officer

regarding the project

VAB 4042/VBB 4043 Engineers in Society

pipelines, valves and so one

the project to proceed tasks involving Procurement Department

suppliers/contractors (to purchase condensate tank, pipeline)

Procurement Manager supervision in finding the best service

company for this project

and the contractors.

Department for this project specifically.