Plant Desin Production of Whit Wyin From - 1
Plant Desin Production of Whit Wyin From - 1
Submitted to Zelalem B.
EXCUTIVE SUMMERY
Wine is one of the most recognizable high value added products from fruits. Wine manufacture
processes involve relatively straight forward. Human sense of smell and taste may use to assess the
flavor of the wine. In addition to flavor recognition and description, there are also the perceptions of
mouth feel, temperature, bubbles; etc. Wine is also drunk for its stimulant properties that derive from
ethyl alcohol, forms by the fermentation of sugars. The technological process of wine production can be
categorized into three main stages. Those are Reception of fresh pineapple, wine making operation takes
and Final operations. Fermentation is a process of deriving energy from the oxidation of organic
compounds, such as carbohydrates, which is usually an organic compound, as opposed to respiration
where electrons are donated to an exogenous electron acceptor, such as oxygen, via an electron transport
chain. Factors Influencing Fermentations are; temperature, PH, sugar content, Micro-organism, acid and
yeast. The total dissolved solids decrease and total suspended solids increase as the fermentation period
increase. Evaluation of cost the payback period is 2 year, Net present value is Non-negative, Rate on
investment is 43.7% net present value ratio is greater than one. The above characteristics indicate that
the project is acceptable.
Table of Contents
EXCUTIVE SUMMERY ........................................................................................................................................... I
1. INTRODUCTION ................................................................................................................................................ 1
CHAPTER FOUR.................................................................................................................................................... 19
4.2.4. Determination of the three main types of primary stress for cylindrical pressure vessel ...................... 25
Reference ................................................................................................................................................................. 41
List of table
Table 2.1 The most wine consumer countries over the world per a year ................................................... 9
Table 2.2 local demand of wine ................................................................................................................ 10
Table 5.1 Raw material cost with transportation ...................................................................................... 29
Table 5.2 purchased equipment ................................................................................................................ 30
Table 5.3 Direct cost ................................................................................................................................ 32
Table 5.4 shows categories of indirect cost part with ranges and selected percentage. ........................... 33
Table 5.5 Direct labor cost (DLC) ............................................................................................................ 34
Table 5.6 Indirect cost (ILC) .................................................................................................................... 35
Table 5.7 Discount cash flow calculation ................................................................................................. 38
Table 5.8 Discount cash flow rate of return (DCSRR OR IRR) .............................................................. 39
List of figure
Figure 1 process flow diagram of white wine production........................................................................................ 16
Figure2 Plant layout ................................................................................................................................................. 42
CHAPTER ONE
1. INTRODUCTION
1.1. Background
Wine is one of the oldest fermented alcoholic beverages in the world, which is defined as the product of
fermenting fruit like grape, pineapple, antis, blaming, banana, mango, and other fruit juice with yeasts.
The term “wine “is also used loosely to refer to alcoholic beverages where other fruits and even
grains are used as fermentation substrates, giving them so-called names as “fruit wine” or “rice
wine”. Wine is one of the most recognizable high value added products from fruits. It can also be
used as a substrate for the manufacture of vinegar, a by-product of wine manufacture (Okeke, etal.2015).
Wine manufacture is challenging in which marketable product can be obtained, but the processes
involved in its production are relatively straight forward highly acceptable wines can be made
practically from all fruits and it can be fermented with yeast that occurs naturally in grape and in
other countries where grape is not produced, emphasis is usually placed on other fruits for wine
making (Ronald 2008).
There are some soft fruits from both temperate and tropical regions whose pigment stability and flavor
profiles match those of any wine from grapes, but suffer from the lack of intensive research and
development given to grape wine. Reports on tropical fruit wines have been mainly on exotic species
such as pineapple, banana citrus, mango, pawpaw, apple, strawberries etc. (Okeke,etal.2015). Pineapples
are an important staple starchy food. It is a seasonal and highly perishable fruit, which can be available
all year round. The large quantity of pineapple and plantains provides the potential for industrial use. In
addition, any application to produce a marketable, value-added product will improve pineapple-
farming economies and eliminate the large environmental problem presented by pineapple waste.
Pineapple could then compete in the market, either as pineapple juice or as mixtures with other juices
because of its flavor and aroma (Ronald 2008).
Pineapple (Ananascomosus) belonging to the Bromeliaceous family is grown in different parts of
Ethiopia for the local market and it used as a fruit crop has a lot of economic, nutritional,
medicinal and industrial importance. Pineapple as food for human consumption contains about 81.2-
86.2% moisture, 13-19% total solids of which sucrose, glucose and fructose.
CHAPTER TWO
2. LITERATURE REVIEW
2.1 Introduction
Wine takes its name from the old English word win, which is pronounced wean, which in turn is based
on the Latin word vinum(Ronald 2008). It has an archeological record dating back more than 7.5
thousand years. The earliest suspected wine residues come from the early to mid-fifth millennium B.C.
Hajji Firuz Tepe, in the northern Zagros Mountains of Iran. Evidence from Neolithic pottery from
Georgia suggests that contemporaneous wine production was dispersed throughout the region. Older
examples of fermented beverages have been discovered, but they appear to have been produced from
rice, honey, and fruit (hawthorn and/or grape). Such beverages were being produced in China (Ronald
2008).
The first unequivocal evidence of intentional wine making appears in the representations of wine presses
from the reign of Udimu (Egypt), some 5000 years ago, southern Caucasia. This area includes parts of
present-day northwestern Turkey, northern Iraq, Azerbaijan, and Georgia (Ronald 2008) The ancient
world earliest piece of solid evidence is a wine stain found in Iran on a Persian amphora dated around
3500BC, earliest mention around the Mediterranean is around 1500B.C by the Greeks & Phoenicians
who colonized this whole region, the Romans domesticated it and extended its growth throughout
Europe, from 5th century they left the foundations for the famous French vineyards of the modern world
(James 2010). The middle ages:-the medieval period rises, the Church was repository of skills of
civilization in the dark ages, monks understood that the slopes of hills, were better locations for
vineyards, they developed the art of selecting the vine Stock to suit the ground conditions, (the greatest
oenologist Benedictine Monk Dom Perignon although blind while based at Haut Villiers Abbey perfects
(Champagne) luxurious, the aristocracy would beg for it in this period. Cultivation of the Vine helps to
provide sustainable economic stability for many countries (Boulton and L.F. Bisson 1996).
17th century onwards, Change in tastes chocolate (Central America), coffee (Arabia) tea (China). These
new beverages all challenged wine and it needed change. The drive for quality and innovation in wine
begins and into the 20th century and with the advances Department of Chemical Engineering (Food
Stream) Thesis project on wine production from pineapple fruit Page 6 brought about through the
industrial revolution and scientific discoveries wine flourishes (Johnson, 2003). Wine probably appeared
in Europe at about 4500BC in what is now Bulgaria, and Greece, and was very common in ancient
Greece, Thrace and Rome. Wine has also played an important role in religion throughout history. The
Greek god Dionysus and the Roman equivalent Bacchus represented wine, and the drink is also used in
Catholic Eucharistic ceremonies and the Jewish Kiddush. Most commercially produced wines are
usually made from fermented grapes; this fermentation process is not done by introducing any chemicals
or sugar but by adding different species of yeast to the crushed grapes.
Yeast has the capability of converting grapes into an alcoholic compound and removing the sugar
content in it for the production of different types of wines. Sometimes wines are produced from different
types of fruits like; Paw-Paw, mango, Pineapple, Banana, Lemon, Watermelon etc. here the wine so
produced bears the name of the fruit or fruit mixture used in its production (Okeke, et al. 2015). Today a
variety of vine is found growing all over the world due to the wide variety of climates. The vitisvinifera
species is the primary species in making most of the wines. New routes have been established to the
wine industry due to the varieties and vintages that come from all over the world. Due to the captivating
history of the wine and profound interest in their wine France novices and connoisseurs like in searching
the perfect taste of the wine. Certainly, a wine is available for everyone in the world.
The demand for wine is mainly a function of urbanization, income growth, demography growth and
expansion of catering and recreational centers as well as change in food habit of the population. From
Table it is observed that in the last ten years the apparent consumption of wine has grown at an average
rate of 19%. The future demand for wine is forecasted on the assumption that at least a 12% growth rate
will prevail during the forecast period. The projected demand is shown in Table below.
more popular Smooth Cayenne as it has considerably higher market potential than the Red Spanish,
especially in Europe.
2.2.1. Raw material used around the world
Functional benefits
Pineapple (Ananus comosus, Bromeliaceae) is a wonderful tropical fruit having exceptional juiciness,
vibrant tropical flavour and immense health benefits. Pineapple contains considerable calcium,
potassium, fibre, and vitamin C. It is low in fat and cholesterol. Vitamin C is the body's primary water
soluble antioxidant, against free radicals that attack and damage normal cells. It is also a good source of
vitamin B1, vitamin B6, copper and dietary fibre. Pineapple is a digestive aid and a natural Anti-
Inflammatory fruit. A group of sulfur-containing proteolytic (protein digesting) enzymes (bromelain) in
pineapple aid digestion. Fresh pineapples are rich in bromelain used for tenderizing meat. Bromelain has
demonstrated significant anti-inflammatory effects, reducing swelling in inflammatory conditions such
as acute sinusitis, sore throat, arthritis and gout and speeding recovery from injuries and surgery.
Pineapple enzymes have been used with success to treat rheumatoid arthritis and to speed tissue repair as
a result of injuries, diabetic ulcers and general surgery. Pineapple reduces blood clotting and helps
remove plaque from arterial walls. Studies suggest that pineapple enzymes may improve circulation in
those with narrowed arteries, such as angina sufferers. Pineapples are used to help cure bronquitis and
throat infections. It is efficient in the treatment of arterioscleroses and anaemia. Pineapple is an excellent
cerebral toner; it combats loss of memory, sadness and melancholy. Pineapple fruits are primarily used
in three segments, namely, fresh fruit, canning and juice concentrate with characteristic requirements of
size, shape, colour, aroma and flavour.
Pineapple is used around the world as;
Potential Anti-Inflammatory and Digestive
Antioxidant Protection and Immune Support
Manganese and Thiamin for Energy Production and Antioxidant Defenses
Protection against Macular Degeneration
Juice
Animal Feed
Folk Medicine
Ornamental Value
The main uses are as follow
1. Nutritional Value
Pineapple is a wonderful tropical fruit having exceptional juiciness, vibrant tropical flavor and immense
health benefits. Pineapple contains considerable amount of calcium, potassium, vitamin C,
carbohydrates, crude fibre, water and different minerals that is good for the digestive system and helps
in maintaining ideal weight and balanced nutrition.
2. Uses as Food
Pineapple fruits exhibit high moisture, high sugars, soluble solid content ascorbic acid and low crude
fibre. Thus pineapple can be used as supplementary nutritional fruit for good personal health .The
pineapple fruits are normally consumed fresh or as fresh pineapple juice. Field ripe fruits are best for
eating fresh, and it is only necessary to remove the crown, rind, eyes and core. Pineapple may be
consumed fresh, canned, juiced, and are found in a wide array of food stuffs - dessert, fruit salad, jam,
yogurt, ice cream, candy, and as a complement to meat dishes.
3. Medicinal Value
Pineapple can be used as supplementary nutritional fruit for good personal health. Pineapple fruits are an
excellent source of vitamins and minerals. One healthy ripe pineapple fruit can supply about 16.2% of
daily requirement for vitamin C. Vitamin C is the body's primary water soluble antioxidant, against free
radicals that attack and damage normal cells. A powerful antioxidant, vitamin C supports the formation
of collagen in bones, blood vessels, cartilage and muscle, as well as the absorption of iron. Vitamin C
also retards the development of urinary tract infections during pregnancy and reduces the risk of certain
cancers.
2.2.2. Factors affecting raw material selection
Properties of pineapple
Location of pineapple farm
Availability of pineapple
Cost of pineapple
Process parameters
Transportation
The following indicate the type of questions that are likely to-be considered in trying to arrive at
answers to the above general questions.
Properties:
What chemical properties are required? Will the properties be required at low temperatures, about
room temperature or high temperatures?
Considering the environment to which the material will be exposed and the possibility of pollution.
Location
Is pineapple nearly available for processing industry of wine?
Availability:
Is the pineapple readily available? Is it, for example, already in store, or perhaps quickly obtainable
from normal suppliers?
Are there any ordering problems for that pineapple?
Is the material only available from special suppliers? Is there a minimum order quantity?.
Cost:
1. What is the cast of the pineapple?
2. What quantity is required?
What quantity of product is to be produced per week, per month, per year? What stocking policy should
be adopted for the material? Will expensive skilled labour be required?
Processing Parameters:
1. Are there any special processing requirements which will limit the choice of pineapple? For
example, does the pineapple have to be cast or perhaps extruded?
2. Are there any pineapple treatment requirements?
For example, does pineapple have to be annealed or perhaps solution hardened?
3. Are there any special tooling requirements?
For example, does the hardness of pineapple required of a material mean special cutting tools are
required?
Many white wines requires the removal of all potentially active yeast and lactic acid bacteria if they are
to remain reliably stable in bottle and this is usually now achieved by fine filtration. This is a purely
physical process and involves the separation of liquid (wine) from any sediment deposits or „suspended‟
particles.
Aging
After fermentation is completed the new wine must be aged 1-3 weeks. The aging of wine, and its ability
to potentially improve wine quality, distinguishes wine from most other consumable goods.
Matured wine bottling
A wine bottle is a bottle used for holding wine, generally made of glass.
WATER
P-FRUIT
CRUSHER
PILLER
PA P-FRUT SWA SH W-FRUT H-MILL
F-FRUIT
D-WATER
UNS-JUIC
F-JUC
STRALIZ E
PUMP1
F-JUICE S-JUICE
FILTER MIXER
SLUDGE
M-JUCE
F-TA NK F-WINE
F-WWINE PUMP2
FILTER2 W-PWINE S-TA NK
SILUGES
W-WINE
that allow cancer to thrive. Red wine especially is beneficial, as the resveratrol that fights against heart
disease also fights against cancerous cells.
9. It improves cognitive function
It may sound crazy, but drinking a glass of wine is like food for the brain. Drinking a single glass has
shown to improve brain function. The chemicals in red wine prevent the brain's neurons from dying off.
10. It promotes longevity
When you hear about healthy living and longevity, time and time again the Mediterranean diet comes
up. At the core of that diet, beyond olive oil and vegetables, is wine. There is something magical inside
the daily glass of wine that increases life span. And that magical thing is resveratrol.
CHAPTER THREE
3 Mass and material balance
3.1Mass balance
The plant is assumed to cover only 20% of the 2017 unsatisfied demand and hence designed to have a production
capacity of 77526.8 hector-liters of assorted wine products from fresh pineapple fruit based on 300 working days
and two shifts per day.
Industrial scale up from laboratory work
Scaling up is possible by material balance for equipment’s and finding corresponding value of
The proposed capacity, 77,526 Hector liter/yr.
The following assumption has been taken:
Batch process
300 operating days per year
Number of batch per weak = one batch/week
Number of batch per year =43batch /year
Wine production per batch = 77,526hecto liter/year/43batch/year = 1803 hl/batch
Wine production per day = 1803 hl /batch Batch /7 day = 257.57hl/day
Wine production per hour = 257.57hl/day day/24 hr. = 10.73 hl /hr
Mass of
Mass of fresh Peeler
inedible
pineapple part
Mass of
edible part
Where;
MFP = mass of fresh pineapple
MD Juicer MJ
Mass balance
Where
MU= mass of edible
Input= Output
MJ = MD + MW
MA
Where
MA = mass of additive
MJ = mass of juices
MJ + MA = MCO2 + MFN
MFW = 2177.4kg
CHAPTER FOUR
4 .1 Equipment Sizing and Design
A. Sizing of pineapple fruit storage tank Volume
Assume the volume of storage tank is 90% full therefore total volume of storage tank
estimated as follow
B. Sizing of sanitization
V pineapple
If sanitizer is 90% full in each cycle the volume of the sanitizer is estimated as follows
V pulp=
D, Sizing of mixer
The volume of mixture = the volume of pulp + the volume of water
From the mass balance mass of pulp per batch cycle (MP) = 4802.56kg/day
If the mixer is 90%full in each batch then the volume of the mixer estimated as follow
m3
V mixer = 32.18m3
D. Sizing on separator
From the mass balance the mass of mixture (M mix) =16976 kg/day
Average density of the mixture (ρ avg) = 0.7ρwater +0.3ρpulp
=0.7(1000kg/m3) +0.3(999kg/m3) =999.7kg/m3
m3
If the separator 90% is full the volume of the cylindrical chamber of the crusher estimated as
flow
m3
If the fermentation vessel 90 %is full then the volume of the fermenter vessel is estimated as
follow. V fermenter vessel
3
V=
The number of batch per cycle is three batches per cycle is 35.11 m3
If the vessel 90 %is full then the volume of the vessel is estimated as follow.
Volume = 105.33 m3 /0.9 = 39 m3
4.2 Design of major equipment
4.2.1. Mechanical design of Mixer
Assumption:
The shape of the mixer is cylindrical conical bottom and head.
Height to diameter ration is 1.5.
The bottom external conical angle is 65⁰.
Material of construction for mixer is stainless steel.
The vessel has uniform thickness
A. Dimension analysis of mixer
Then
( )
Where:-
Pi - is the internal pressure of the vessel
Di- is the internal diameter of the vessel
J -is joint factor
C-is corrosion allowance = 2 mm
f - is the material property
Hydrostatic pressure (Ph)
,
Where
Height of liquid in the vessel (h) = 7m
Density of mixture (ρ) = 0.30433kg/m3
Acceleration due to gravity (g) = 9.81m/s2
Then:-
Ph = 7 m*9.81m/s2*304.33kg/m3= 11.35kgm2/s2m3 = 11.35 kpa
Take The operating pressure of the mixer at the operating temperature that is 35oc at
Maximum level 7.5 bar
Ptotal = 0.01135bar +7.5bar = 7.511bar = 0.7511 N/mm2
From Coulson & Richardson’s chemical engineering book volume 6, table 13.2 and 13.3 the
Value of (f =165 N/mm2) and (j = 0.8) are respectively.
t = (0.7511N/mm2 * 3500mm)/ (2*0.85 *165N/mm2 - 0.7511N/mm2)
t = 1907.7N/mm / 263 N/mm2 = 9.98mm
t = 9.98mm + 2mm = 11.98mm
Outer diameter of the vessel = Di +2t
D0 = 3500 mm + 11.98mm = 5311.98 mm
6.2.2. Design of conical head (closures)
The minimum thickness of the conical head calculated as follow
Where;
Dc: - is the diameter of the cone (Dc = Di) =3.5m
P:- is the internal pressure of the fermenter vessel = 0.7511N/mm2
Cc- is the stresses concentration factor From Coulson & Richardson's chemical engineering book
volume 6, at half apex angle 30 , Cc = 1.35
C- is corrosion allowance = 2 mm
Then:-
t = (1.35 *0.7511N/mm2 *3500mm)/(2*0.8 *165 N/mm2 – 0.7511 N/mm2)
(2575.52 N/mm)/ (263.25 N/mm2) = 13.38 mm
t = 13.48mm +2mm = 15.48mm
4.2.4. Determination of the three main types of primary stress for cylindrical
pressure vessel
A) Circumference and longitudinal stress due to internal pressure it can be expressed as
Where:-
Take CV = 1.08, vessel with plates;
Dm = 1.5+13*10-3m= 0.0195 m
Hv = 38 m
t = 10 mm
WV=240CvDm (Hv+0.8Dm) t
WV = 240*1.08*0.0195*(38 +0.8*0.0195)13= 2497.9 N= 2.4979 KN
Weight of insulation = WL= volume occupied * density of the wool * gravitational acceleration
Weight of insulation is Mineral wool density = 130Kg/m3
Insulation: mineral wool, 60 mm thick, = 60* 10-3m
Volume of insulation=
WL = 10.7m3*130kg/m3/m3*9.81m/s2 = 13702N
Double this to allow for fittings, etc. = 27.4 KN
Total weight = Wz = weight of shell + weight of insulation
Wz = 27.4 KN +2.4979 KN = 29.8979 KN
P=
Where:-
P = Power required for impeller motor
Np = power number
N = Speed of impeller
ρ= density of mixture
p=
⁄
CHAPTER FIVE
5. Cost Estimation
This design project aims to present a process that is capable of operating under conditions which
will yield profit. As a necessity the economic viability of this manufacturing business must be
addressed considering the society and government with which it will operate. The primary
concern of an investors lies in the rate of return (ROR) based on accurate cost estimates and
sound data
Basis of economic analysis:
Plant operation: 2 shifts per day
Process: batch
Plant life: 10 years
Plant production rate: Wine production capacity = 77,526.8 hector-liter/year
5.1 Raw material cost
The amount of the raw materials which must be supplied per unit of time or per unit of product can be
determined from process material balances. In many cases, certain materials act only as an agent of
production and may be recoverable to some extent. Therefore, the cost should be based on the amount of
raw materials actually consumed as determined from the overall material balances
Table 5.1 Raw material cost with transportation
Purchased cost =the summation of all equipment cost used in production of a product
58060984.7
5.3 Fixed capital investment estimation
Purchased equipment (15-40%) of fixed capital investment (MAX S. PETERS. 1991).
We choose 40 %FCI
Purchased equipment cost=40 %fixed capital investment
Direct cost is the type of fixed capital investment costs that directly applicable for plant erect. It
takes 70-85% of FCI range. 82% is available for this project.
1) Instrumentation and control cost
Instrumentation and control, installed (25-55% of purchased equipment cost).This component is
estimated to be 30% of purchased equipment cost for solid -fluid chemical process plant.
2) Piping cost
Piping installed (25-35% of purchased equipment cost). The piping cost is estimated to be 32%
of purchased equipment cost for solid-fluid chemical process plant.
3) Cost of electrical system
. Electrical, installed (10-15% of purchased equipment cost). This component is estimated to be
12% of purchased equipment cost for solid-fluid chemical process plant.
4) Cost of buildings and Auxiliary
The cost involved in the erection of all buildings connected with the plant (labor, materials and
supplies). Buildings process and auxiliary (20-30% of purchased equipment cost). Cost of
plumbing, heating, lighting, ventilation, and similar building services are included here. This
component is estimated to be 23% of purchased equipment cost for solid fluid chemical process
plant (MAX S. PETERS. 1991).
5) Cost of yard improvement
This involves costs for fencing, grading, roads, sidewalks, rail road sidings, landscaping and
similar items. Yard improvement (10-20% of purchased equipment), Yard improvement cost for
chemical plant is estimated to be 12% of purchased equipment cost.
6) Service facility and utility cost
Utilities for supplying steam, water, power and fuel are part of the service facilities of a chemical
process plant. Services facilities (30-80% of purchased equipment cost), Services include the
cost of waste disposal, fire protection, and miscellaneous service items (shop, first aid, cafeteria
equipment etc.). This component is estimated to be 60% of the purchased equipment cost for
Solid fluid chemical process plant (MAX S. PETERS. 1991).
6) Cost of land
The plant will be sited at Adama in the eastern part of Ethiopia. The cost of land (4-8% of
purchased equipment cost), this component is estimated to be 7% of the purchased equipment
cost.
Table5.3 Direct cost
B) Indirect cost
Indirect cost is another type of fixed capital investment cost that applicable for plant erect
indirectly.
1) Engineering and supervision cost
This involves construction design and engineering, drafting, purchasing accounting, construction
and cost engineering, travel, reproductions, communications and home office expenses including
overhead. Engineering and supervision (5-30% of E).This component is estimated as 30% of
purchased equipment cost.
2) Construction expenses
This component involves construction and operation, construction tools and rentals, construction
payroll, taxes, insurance and other overheads. Construction expenses (10% of DC).
3) Contractors‟ fee
The contractor fee (2-8% of DC). The contractors‟ fee can be taken as 5% of DC.
4) Contingency fees
A contingency amount is included in all estimates of total capital investment in recognition of
the fact that, there will be unexpected events and changes that will inevitably increase the cost of
the project (i.e. strikes, price changes, small design changes, storms, floods etc). The contingency
fee takes (5-15% of D+I). This component is estimated as 8% of D+I (MAX S. PETERS. 1991).
The table5.4 shows categories of indirect cost part with ranges and selected percentage.
The total capital investment = Fixed Capital investment + working capital investment.
In most plants working capital investment takes (10-20) % of total capital investment. In this plant, it is
assumed that 15% of total capital investment cost.
Therefore, Total capital investment = fixed capital investment + working capital investment
TCI = FCI + 0.15TCI
TCI = 157,769,110.3ETB + 0.15%TCI
TCI=157,769,110.3ETB/0.85= 306,505,645.9ETB
Working capital = 0.15TCI = 45,975,846.89ETB
5.4. Total product cost estimation
Determination of the necessary capital investment is only one part of a complete cost estimate. Another
equally important part is the estimation of costs for operating the plant and selling the Products. These
costs can be grouped under the general heading of total product cost. The latter, in turn, is generally
divided into the categories of manufacturing costs and general expenses. Manufacturing costs are also
known as operating or production costs. Further subdivision of the
Manufacturing costs is somewhat dependent upon the interpretation of direct and indirect costs.
Total product cost = manufacturing cost + general expense
Manufacturing cost = direct production cost + fixed charge + plant-overhead cost
. Fixed charges
Depreciation (10% of FCI ) = 26,052,979.9ETB
Local taxes (3-4%of FCI) assume 3% = 7,815,893.97ETB
Insurance (0.4-1% of FCI) assume 1% = 2,605,297.99ETB
Total fixed charges = 36,474,171.86ETB
Payback period
Break-even analysis
The break-even analysis establishes a relationship between operation costs and revenues. It
indicates the level at which costs and revenue are in equilibrium. To this end, the break-even
point of the project including cost of finance when it starts to operate at full capacity (year 2) is
estimated by using income statement projection.
Variable cost = raw material cost + utility cost = 103,536,417.46+36,474,171.86
Vs =140,010,589.3ETB
Fixed cost = TPC – Vs. = 243,161,145.7- 140,010,589.3ETB
Fc = 103,150,556.4ETB
Breakeven point=fc/ (as-Vs)*100%=103,150,589.3/ (496, 171520-140,010,589.3)*100%=29%
Break-even volume = 7,752,680liter/year*0.437 = 3,387,921.16liter/year
Year 0 1 2 3 4 5 6 7 8 9 10
Capacity 70 80 95 95 95 95 95 95 95 95
utilization%
1.Cash 347320 396937 471363 471363 471363 471363 471363 471363 471363 471363
in flow
Revenue 347320 396937 471363 471363 471363 471363 471363 471363 471363 471363
Salvage - - - - - - - - - 500
value
2. Cash out 306506 201109 232126 285974 285974 285974 285974 285974 285974 285974 285974
flow
Investment 306506
RM and - 72476 82830 108986 108986 108986 108986 108986 108986 108986 108986
others
Utility - 25532 29179 34650 34650 34650 34650 34650 34650 34650 34650
OP labour - 1390 1589 1587 1587 1587 1587 1587 1587 1587 1587
Maintenance - 7295 8338 9901 9901 9901 9901 9901 9901 9901 9901
and repair
Laboratory - 139 158 189 189 189 189 189 189 189 189
charge
Patent and - 6808 7782 9240 9240 9240 9240 9240 9240 9240 9240
royalty
Fixed - 25532 29179 34650 34650 34650 34650 34650 34650 34650 34650
charge
Plant - 15319 17508 20790 20790 20790 20790 20790 20790 20790 20790
over head
General - 48618 55563 65981 65981 65981 65981 65981 65981 65981 65981
expense
Growth - 146211 16811 185389 185389 185389 185389 185389 185389 185389 185389
profit(1-2) 306506
Net profit - 95037 107127 120502 120502 120502 120502 120502 120502 120502 120502
after35% tax 306506
Year 0 1 2 3 4 5 6 7 8 9 10
Cash - 95037 107127 120502 120502 120502 120502 120502 120502 120502 1
flow 30650
6
Discount 1 0.895 0.796 0.712 0.635 0.567 0.507 0.452 0.403 0.360 0.322
Factor at
12%
PV - 130545 131386 131956 117818 105195 93924 83860 74876 66853 5969
30650 0
6
CHAPTER SIX
6.1 Plant Siting and Location
The geographical area of the plant has a strong influence on the success or failure of the plant. In other
words, it has a crucial effect on the profitability of the plant, and the scope of future expansion. Therefore,
a plant should be located where minimum cost of production, as well as distribution could be obtained,
amongst other factors. In order to make the design project realistic, the aspect of site selection must be
given some consideration. There are a number of considerations concerning the choice of site locations
for the production of pineapple wine with in the country. Some of these are general considerations whilst
others relate directly to the process and its requirements. The following list contains a few of the
important considerations of site selection criteria.
The plant erect where Power availability is nice.
The availability of transportation must be considered.
Human power can be getting easily and cheapest compare to other city.
A good working environment is preferable for the workers.
Distance from fruit land must be also considered.
The type of soil is also must be considered.
Therefore, Awash melkesa is best for erecting of pineapple wine production plant due to the fulfillment of
this consideration.
6.1.1 Environmental impact assessment
The global wine industry has a tremendous impact on the environment, from production and
manufacturing through transportation and marketing, and ultimately with the consumer who must deal
with the resulting packaging materials. Plenty of people don’t bother to recycle (or can’t) their wine
bottles, and many people actually do not know what to do with corks, other than throw them in the trash.
Wine production itself accounts for a large amount of synthetic fungicides, herbicides, and fertilizers that
end up in our earth and water. Not to mention the massive amounts of water used in grape production.
Likewise, untreated waste water from winery use hosing down barrels, tanks and buildings can harm the
ecosystems in and around rivers, lakes and ponds.
CHAPTER SEVEN
7 Conclusion and recommendation
7.1. Conclusion
Evaluation of cost the payback period is 2 year, Net present value is Non-negative, Rate on
investment is 43.7% net present value ratio is greater than one. The above characteristics indicate
that the project is acceptable.
The seasonality of pineapple fruits as well as poor handling and transportation of the fruits,
absence of industrial utilization of the pineapples as raw material, rejection from the international
market coupled with inadequate local market conditions contribute to the high postharvest losses
of pineapple in Ethiopia. Measures put in place to reduce this wastage can be very effective. This
included the extraction of pineapple juice and conversion of the juice to wine by fermentation.
These measures would greatly enhance the keeping qualities of pineapple juice wine, thus
reducing wastage.
7.2. Recommendation
The fermentation of wine needs controller temperature.Therefore, someone needs to find good quality
wine product they must be use new and technological fermenter in order to adjust the temperature during
the fermentation season. The society use pineapple for the food consumption, while using pineapple for
industrial use may cause the scarcity of pineapple for the society, therefore the manufacturer needs to
prepare a hector of land for cultivation of the pineapple plant. This helps to fill the gap of problem due to
pineapple shortage in the societies. Additionally the waste of pineapple in the manufacture can cause the
environmental pollution, so we keep the waste on one place and use it as a fertilizer for land cultivation,
that increase the amount of raw material and maximizing wine production. Awareness about pineapple
wine also need be created on the peoples through promotion and training of farmers. Pineapple the Main
raw material for production wine instead of grip to increase the availability of this raw material an
inventor create Awareness the farmer in order to cultivation. When same one produced wine from
pineapple they must be, keep the raw pineapple from damaged, burs, checked to reach for harvesting and
use technological fermenters.
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