Process engineering economics i industrial engineering management

Industrial Engineering Management Systems Approach to the Enterprise Vision
L | C | LOGISTICS
PLANT MANUFACTURING AND BUILDING FACILITIES EQUIPMENT
Industrial Engineering Management E-Book
INDUSTRIAL ENGINEERING MANAGEMENT FUNDAMENTALS AND HOW IT WORKS
June 2020
Expertise in Process Engineering Optimization Solutions & Industrial Engineering Projects Management
Supply Chain Manufacturing & DC Facilities Logistics Operations Planning Management
PROCESS ENGINEERING ECONOMICS

Process Engineering Economics
Introduction:
Process Engineering Economics considers a wide range of alternatives for profitable investing and for
projecting outcomes in various engineering fields. It also explains how to monitor costs, finances, and
economic limitations at every stage of engineering projects design, preparation, and evaluation
It is also, the study of how businesses in different industries operate and compete against each other
and why they succeed or fail
One of the key issues in engineering economics is assessing whether a company is competitive.
Competitive companies are normally good for consumers (although they might not always be feasible)
Engineering Economics uses theoretical models to guide engineering decision making, and so engineers
should expect to use diagrams and maybe some basic mathematical algebra and calculus models,
including linear programming and zero game theory. In addition, engineers often develop empirical
statistical and probability models to identify relationships between variables of interest: for example to
understand the relationship between production cost, logistics cost, product price, advertising, profit
We will focus on the balanced scorecard, which is a strategic management performance metric used to
identify and improve various internal production and logistics operations; analyze their resulting
external outcomes. Balanced scorecards are used to measure and provide feedback to management.
Data collection is crucial to providing quantitative results as engineers gather and interpret the
information and use it to make better decisions for management
We will review some aspects of financial statements, budgets, estimation of capital requirements,
estimation of operating expenses, time value of money, depreciation, cash flow concept, estimate of
profitability, the economic balance; using some examples, and concluding comments

The scorecard is a management system that aligns your company’s strategy with your tactical
activities. Developed uniquely for your company, this system enables you to maintain focus.
The scorecard includes your objectives, measures KPIs, the initiatives to reach those KPIs.
The scorecard elements align with your company’s mission, vision, and values, and you develop each of
these elements in different perspectives: financial, customer, internal business processes, learning and
growth. These perspectives, taken together, give your scorecard the “balanced” approach.
Financial Perspective: This indicates whether your strategy improves your company’s bottom line and
how that strategy is implemented and executed.
Customer Perspective: This is all about the value proposition that you give to your customers. From
this, you can target the market segment that you want to address and maximize your strategies.
Internal Business Processes Perspective: This ensures the stability and sound operation of your
business. In this way, you can guarantee that your products and services meet your customer’s
expectations.
Learning and Growth Perspective: This consists of training and improvement for your workforce. It
ensures that your employees have the skills and development to keep pace and exceed the
competition.
Part of the benefit of having a scorecard is that you will design it yourself. You and your team design
and implement; so that it meets your unique business needs. Essentially, you are flushing out your
business goals to determine the best and most realistic course to achieve them. You may then cascade
those goals down through the structure of your business to maintain alignment. When using this
management system, you should also perform a strategic mapping of your objectives. A strategy map
gives your objectives cause-and-effect directionality.

3rd Party Logistics Business Objective FY 2020:
1. Retaining the Existing Contracts
2. Obtaining at least one warehouse project
3. New Business Growth + 20%
Mr. TC Country Head (Thaialand)
Learnings of F 19 & Business implications Financial performance (Local currency in MTB)
Learnings of F19 Business Implication
Parameter FY'16 FY'17 FY'18 **FY'19 P FY'20 P FY 21P
Business size small with few contracts
No significant Growth
Thai COVID19 leading to factories closure PBT Loss ,Recovery expected in Q4 Revenue 137 88 110 80 138 193
OEMs having nominated Service Providers Entry barrier for OEM business
% Growth
453% -57% 20% -37% 42% 29%
Global OEMs having long BD cycle-New plants NB revenue Drop
EBITDA 2.73 2.39 3.65 0.88 2.01 10.16
Rate renegotiation with Transporters Margin Improvement % Growth 1.99% 2.72% 3.32% 1.11% 1.46% 5.26%
Services levels maintained with CS above 90% Business Rention with renewals PBT 2.39 2.06 3.35 0.29 1.31 8.82
Participation in Fairs ,Networking Brand visibility and more RFQ % Growth 1.74% 2.35% 3.06% 0.36% 0.95% 4.57%
Need for matching competitors capability incl.ITTo retain wallet share with MSA Net Cash in Flow 4.6 -3.6 8.6 -1 -1 3
Assessment of opprtunity,capability and resources for
implementing MESCO Tooling supply chain
Revenue growth through' other
verticals
Critical Success Factors
Critical Success factor Initiatives Holder Measure
Services Rendered - Customer wise
1. Financial Excellence
To acquire /form JV with local logistics company
having capabilities/infrastructiure
TC ธ.ค.-19
Customer name
Material
mgmt
Warehouse
mgmt
Transport
mgmt
Freight
mgmt
Asset Based
BOI approval for entry into new verticals Gokul ส.ค.-19
Mex Summit A Y
2. Operational Excellence
Adherence of KPI Pomual No complaint
Aapico Y To ensure CS above 90% Pomual 90%
Aztec Kubota Y
Tata Motors
Thailand Y Y
3. Customer Excellence
To scale up with new business development. Luis 30 MTB
Mex Chanathon Y
International casting Y Customer development with TMTL MSR Kumar 6 MTB
Unity Y
4. IT Excellence
To provide supply chain visibility and reports to
MSA
Pomual ก.ย.-19
Mahle Aztec Y
Competition and other threats
Threat Counter action
5. Talent Excellence
To recruit BD Head and OPS Head TC พ.ค.-19
Wallet share reduction in Mex Summit due to
CUEVITA Service level enhancement
To train team on business verticals TC มิ.ย.-19
Local transporters competing with lower prices Value additions to customers To train the team on HR policies Madhu มิ.ย.-19
Critical business opportunity
Opportunity Target Value
Business from Volkswagen - inbound operations ก.ย.-20
RFQ from CAT - inbound operations ก.พ.-20
Key Business Metrics
Business metric Value
Turnover 138 MTB
Business from Volkswagen ก.ย.-20
JV with GOLF ธ.ค.-20 Support required from management
MESCO model implementation มี.ค.-20 Support required From
Entry into large scale Warehousing ธ.ค.-20 Board approval for acquisition/JV Management Board

What is EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization and is a metric used to
evaluate a company’s operating performance
The EBITDA metric is a variation of operating income (EBIT) because it excludes non-operating expenses
and certain non-cash expenses.
The purpose of these deductions is to remove the factors that business owners have discretion over, such
as debt financing, capital structure, methods of depreciation, and taxes (to some extent). It can be used to
showcase a firm’s financial performance without accounting for its capital structure.
EBITDA focuses on the operating decisions of a business because it looks at the business’ profitability from
its core operations before the impact of capital structure, leverage and non-cash items like depreciation
are taken into account
EBITDA Formula
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization
OR
EBITDA = Operating Profit + Depreciation + Amortization
The EBITDA metric is commonly used as a proxy for cash flow. It can give an analyst a quick estimate of
the value of the company
In addition, when a company is not making a profit, investors can turn to EBITDA to evaluate a company.
Many private equity firms use this metric because it is very good for comparing similar companies in the
same industry. Business owners use it to compare their performance against their competitors.

Interest is excluded from EBITDA, as it depends on the financing structure of a company. It comes from
the money it has borrowed to fund its business activities. Different companies have different capital
structures, resulting in different interest expenses. Hence, it is easier to compare the relative
performance of companies by adding back interest and ignoring the impact of capital structure on the
business. Note that interest payments are tax deductible, meaning corporations can take advantage of
this benefit in what is called a corporate tax shield
Taxes vary and depend on the region where the business is in operating in. Taxes are an expense of a
business that must be paid to the government in the jurisdiction of the company. They are a function of
tax rules, which are not really part of assessing a management team’s performance, and thus
many financial analysts prefer to add them back when comparing businesses.
Depreciation and amortization (D&A) depend on the historical investments the company has made and
not on the current operating performance of the business. Companies invest in long-term fixed
assets (such as buildings or vehicles) that lose value due to wear and tear. The depreciation expense is
based on a portion of the company’s tangible fixed assets deteriorating. Amortization expense is
incurred if the asset is intangible. Intangible assets such as patents are amortized because they have a
limited useful life (competitive protection) before expiration.
D&A is heavily influenced by assumptions regarding useful economic life, salvage value, and
the depreciation method used. Because of this, analysts may find that operating income is different
than what they think the number should be, and therefore D&A is backed out of the EBITDA calculation.
The D&A expense can be located in the firm’s cash flow statement under the cash from operating
activities section. Since depreciation and amortization is a non-cash expense, it is added back (the
expense is usually a positive number for this reason) while on the cash flow statement.

<Pos name> Status Update Sheet for the month of _____________ <Position head>
Financial Update Business metric update
Parameter
Year Month YTD Metric Target Actual
FY'19
Plan
FY'20
LoS
FY'20
Bud
Apr'20
Act Apr'20
Act
Apr'19
GOLY Bud YTD Act YTD
FY'19
YTD
GOLY
Revenue
EBITDA
PBT
Free cash flow
Initiative Update
Strategic
Objective Initiatives Holder
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Target Date
Financial
Excellence
To acquire /form JV with local logistics
company having capabilities/infrastructiure TC Dec20
BOI approval for entry into new verticals Gokul Aug20
Operation
Excellence
Adherence of KPI Pomual No complaint
To ensure CSI above 90% for pareto
customers Pomual 90%
Customer
Excellence
To scale up business with New business
development Luis 30 MTB
Customer development with TMTL MSR Kumar 6 MTB
IT Excellence
To provide supply chain visibility and reports to
MSA Pomual Sep20
Talent Excellence
To recruit BD Head and OPS Head TC May20
To train team on other verticals TC Jun20
To train team on HR policies and PMS Madhu Jun20
Other updates
Critical Business opportunities Support from management External threat
Business opportunity Status Support needed From Status Counter action Status

S.No Strategic Objective Organisational Measurement Initiatives Lead indicator
Lag
indicator
Impact to organization
1
Financial
Excellence
Growth in PBT
To form a JV with GOLF
LOI sign off
Due diligence
Milestones plan
JV
agreement
sign off Annual profit of 20MTB
Return on Equity
Incremental Free Cash Flow
2
Customer
Excellence
Contract retention (% of Value)1
Revenue growth %
% of annualised encirclement2
/new
business obtained from
pareto/targeted Customers
TATA Motors CKD exports
into Thailand and Indonesia
Periodic customer
viisits deal sign off
Business
contract sign
off
Growth with global customer
in Far east
3
Operational
Excellence
Exceeding the agreed ISI / CSI /
SLA norms To ensure CSI above 90%
service level
adherance CSI Customer Retention
Create operational excellence
capabilities in each business unit3
4 IT Excellence
All the review data come from the
system
To provide supply chain
visibility and reports to MSA
Operations and IT
interactive meetings
and solutionning
System
generated
Reports
Increased revenue by 15 MTB
with 0.5MTB profit
Transfer of IT Knowledge/Cross
implementation of technology
practices across organizations
New customer solutions through IT
5 Talent Excellence
Talent Retention & Sucession
planning - % of management with
Succession plans
Talent retention,Succession plan-%
mgmt with Succession plan
Attrition %
Talent Acquisition - Availability of
right people in the key positions
To recruit BD Head and Ops
Head and train on other
verticals
Meeting with Vertical
experts
Generating
business
enquiries
Entry into warehousing
operation and Tooling supply
chain
Consequence management

<TC> Status Update Sheet for the month of _____________
Initiative Update
Strategic Objective
Organisational
Measurement Initiatives
Ap
r
Ma
y
Ju
n
Jul
Au
g
Se
p
Oc
t
No
v
De
c
Ja
n
Fe
b
Ma
r
Target date
Financial Excellence
Growth in PBT 1
To form a JV with GOLF ธ.ค.-20
Return on Equity 2
Incremental Free Cash
Flow
3
Customer
Excellence
Contract retention (% of
Value)
4
Revenue growth % 5
% of annualised enc/NB
obtained from
pareto/targeted
Customers
6
TATA Motors CKD exports into Thailand and Indonesia ธ.ค.-20
Operational
Excellence
Exceeding agreed ISI / CS
/ SLA
7
To ensure CS above 90% Monthly
Create ops excellence
capabilities in each Bus
unit
8
Information
Technology
Excellence
All the review data from
system
9
To provide supply chain visibility and reports to MSA Sep20
Transfer of IT
Knowledge/CI of
technology practices
across org
10
New customer solutions
through' IT
11
Talent Excellence
Talent
retention,Succession plan-
% mgmt with Succession
plan
12
Attrition % 13
Talent Acq - Available of
right ppl in key pos (%
green in key pos)
14 To recruit BD Head and Ops Head and train on other
verticals Jun 20
Consequence
management
15

Actual Revenue FY 2020
Projects เม.ย.-19 พ.ค.-19 มิ.ย.-19 ก.ค.-19 ส.ค.-19 ก.ย.-19 ต.ค.-19 พ.ย.-19 ธ.ค.-19 ม.ค.-20 ก.พ.-20 มี.ค.-20 Total
AA
256,858 270,705 283,009 228,925 213,185 226,428 181,529 168,102 192,310 210,065 208,645 155,512 2,595,274
AF
667,904 878,057 950,679 950,311 1,347,396 1,387,390 1,650,694 1,401,352 1,481,152 1,222,801 1,334,941 1,418,429 14,691,107
AH - - - - - - - - - - - -
-
SKC
574,895 922,089 851,979 758,536 818,718 750,354 476,359 494,034 415,178 577,064 663,934 749,834 8,052,974
MSA - - - - - - - - - - - -
-
TCT - - - - - - - - - - - -
-
YMPT
187,518 187,518 187,518 187,518 187,518 187,518 187,518 187,518 187,518 187,518 145,754 131,885 2,152,817
TMTL / SFL
100,000 100,000 100,000 200,000 200,000 200,000 200,000 200,000 200,000 300,000 300,000 300,000 2,400,000
TMTL / Unity
302,720 302,720 302,720 302,720 302,720 302,720 302,720 302,720 302,720 302,720 302,720 302,720 3,632,640
2,089,894 2,661,089 2,675,905 2,628,010 3,069,537 3,054,410 2,998,820 2,753,726 2,778,877 2,800,168 2,955,994 3,058,380 33,524,811
Contract Renewals FY 2020
MSA
3,126,133 4,494,173 4,132,766 3,312,419 4,097,480 4,666,121 4,723,291 4,168,965 4,496,266 4,294,991 4,006,614 3,680,290 49,199,510
TCT
512,024 846,032 969,106 966,209 1,106,175 876,275 604,844 443,813 571,562 729,423 721,179 537,695 8,884,334
3,638,157 5,340,205 5,101,871 4,278,628 5,203,655 5,542,395 5,328,135 4,612,777 5,067,828 5,024,414 4,727,792 4,217,985 58,083,844
Encirclements FY 2020
AA - Interunit Transfer
800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000
- - -
7,200,000
SKC n - New Routes & SP
WH Oper 450,000 450,000 450,000 450,000 450,000 450,000 2,700,000
SKC n - Inbound Milkrun
Operation 350,000 350,000 350,000 350,000 350,000 350,000 2,100,000
800,000 800,000 800,000 800,000 800,000 800,000 1,600,000 1,600,000 1,600,000 800,000 800,000 800,000 12,000,000

New Projects Started FY 2020
SKT
287,447 461,045 425,989 379,268 409,359 375,177 238,180 247,017 207,589 288,532 331,967 374,917 2,472,738
287,447 461,045 425,989 379,268 409,359 375,177 238,180 247,017 207,589 288,532 331,967 374,917 2,472,738
New Projects Pipeline FY 2020
ASP - - -
297,602 277,140 294,356 363,058 336,204 384,620 630,196 625,936 466,537 3,378,047
- - -
297,602 277,140 294,356 363,058 336,204 384,620 630,196 625,936 466,537 3,675,649
Business Development
(Plan)
-
SKE
650,000 650,000 650,000 650,000 650,000 650,000
Volkswagen
CAT
New Project 1
800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000 800,000
New Project 2
800,000 800,000 800,000 800,000 800,000 800,000
New Project 3
1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
New Project 3
1,200,000 1,200,000 1,200,000
- - -
800,000 800,000 800,000 3,450,000 3,450,000 3,450,000 4,650,000 4,650,000 4,650,000 26,700,000
Total Revenue / Month FY 2020
เม.ย.-19 พ.ค.-19 มิ.ย.-19 ก.ค.-19 ส.ค.-19 ก.ย.-19 ต.ค.-19 พ.ย.-19 ธ.ค.-19 ม.ค.-20 ก.พ.-20 มี.ค.-20
Existing Project
2,089,894 2,661,089 2,675,905 2,628,010 3,069,537 3,054,410 2,998,820 2,753,726 2,778,877 2,800,168 2,955,994 3,058,380 33,524,811
Contract Renuwals
3,638,157 5,340,205 5,101,871 4,278,628 5,203,655 5,542,395 5,328,135 4,612,777 5,067,828 5,024,414 4,727,792 4,217,985 58,083,844
Encirclement
800,000 800,000 800,000 800,000 800,000 800,000 1,600,000 1,600,000 1,600,000 800,000 800,000 800,000 12,000,000
New Projects Converted
287,447 461,045 425,989 379,268 409,359 375,177 238,180 247,017 207,589 288,532 331,967 374,917 4,026,487
New Project in Pipeline - - -
297,602 277,140 294,356 363,058 336,204 384,620 630,196 625,936 466,537 3,675,649
New Business Development
(Plan)
- - -
800,000 800,000 800,000 3,450,000 3,450,000 3,450,000 4,650,000 4,650,000 4,650,000 26,700,000
Toal
6,815,498 9,262,339 9,003,766 9,183,509 10,559,692 10,866,338 13,978,192 12,999,725 13,488,914 14,193,310 14,091,689 13,567,819 138,010,792

Existing Average
/ Month (THB)
(%)
Required
Average / Month
(THB)
(%)
Revenue Growth
for Brake Even
(THB/Month)
FY20 PLAN (%)
Revenue 8,550,767 12,372,280 3,821,513 138,010,792
Direct Variable Expenses (C1) 7,361,461
86.10
%
10,528,810
85.10
%
117,447,184
85.10
%
Direct Fixed Expenses (C2) 542,552 6.35% 785,640 6.35% 8,763,685 6.35%
Corporate Expenses (C7) 381,745 4.50% 940,000 7.60% 10,488,820 7.60%
PBT 265,008 3.10% 117,830 0.95% 1,311,103 0.95%

The production cost calculation of production is the determination of costs in terms of money per unit of
goods, works or services. The calculation includes direct and indirect costs. Direct is the cost of
materials, wages of workers, etc. Indirect costs: planned profit, transportation, the purchase price,
issued by the supplier; transportation expenses for the delivery of goods to the warehouse; duty and
customs fees, if we import goods from abroad.
We calculate the production cost price - the planned production cost, the costs that the company will
incur for the delivery of products.
Each company calculates the planned production cost in its own way. Enterprises bear different costs
depending on the type of activity; calculation contain a decoding of the costs of materials and wages.
The calculation of the planned production cost price begins with the determination of the production
cost of raw materials and materials used for the production of goods (which are directly involved in the
technological process). The expenses of raw materials is included in the expenses of the standards
approved by the enterprise minus technological losses
Direct costs is the wages of production workers. The basic salary and additional are taken into account.
The principles of the salary is charged (piece-work, time-based, from output),

Year 1 2 3 4 5 6 7 8 9 10
price t7.5 ton ruck 1,685,000
price box 240,000
Total 1,925,000 1,925,000 1,540,000 1,155,000 770,000 385,000 308,000 231,000 154,000 77,000 -
dpreciation 20%/1-5 385,000 385,000 385,000 385,000 385,000 385,000
depreciation 20% 6-10 77,000 77,000 77,000 77,000 77,000 77,000
maintenance 6% 101,100 101,100 101,100 101,100 101,100 101,100
maintenance 9% 151,650 151,650 151,650
maintenance 12% 202,200 202,200 202,200 202,200
truck & cargo insurance 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400
finance cost per year 115,500 115,500 115,500 115,500 115,500 115,500 23,100 23,100 23,100 23,100 23,100
Finance 6%
Total Truck cost/year 616,000 616,000 616,000 616,000 616,000 266,150 266,150 316,700 316,700 316,700
12,320 12,320 12,320 12,320 12,320 5,323 5,323 6,334 6,334 6,334
2,053 2,053 2,053 2,053 2,053 887 887 1,056 1,056 1,056
Cash Flow/year 385,000 385,000 385,000 385,000 385,000 77,000 77,000 77,000 77,000 77,000
7,700 7,700 7,700 7,700 7,700 1,540 1,540 1,540 1,540 1,540
1,283 1,283 1,283 1,283 1,283 257 257 257 257 257
km/lit 1-5 6.5 1 1 1 1 1
km/lit 6-7 5.5 1.18 1.18
km/lt 8-10 5 1.3 1.3 1.3
Diesel 31.03 31.63 24.33 24.33 24.33 24.33 24.33 26.76 26.76 31.63 31.63 31.63
Km/year target 100,000 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000
km/week (50 wk/year) 50 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
km/day (6 days/week) 6 333.33 333 333 333 333 333 333 333 333 333
fuel lits/day 51.28 51.28 51.28 51.28 51.28 60.61 60.61 66.67 66.67 66.67
fuel bath/day 1,622 1,622 1,622 1,622 1,622 1,917 1,917 2,109 2,109 2,109
total cost/day 3,675 3,675 3,675 3,675 3,675 2,804 2,804 3,164 3,164 3,164
Other rmothly Expenses
Driver wages/mth 14,000
Driver travel expenses 720
Driver communication 1,000
Administration cost 14,000
GPS cost 16,000
total other expenses 45,720
grand total/day 1,524 5,199 5,199 5,199 5,199 5,199 4,328 4,328 4,688 4,688 4,688
gross profit 16% 16% 6,031 6,031 6,031 6,031 6,031 5,021 5,021 5,438 5,438 5,438
load max capacity kg 7,000 0.53 0.53 0.53 0.53 0.53 0.40 0.40 0.45 0.45 0.45
load max capacity m3 34.848 105.47 105.47 105.47 105.47 105.47 80.47 80.47 90.80 90.80 90.80
load max 600ml bottles 11,667 0.32 0.32 0.32 0.32 0.32 0.24 0.24 0.27 0.27 0.27
load max 1500ml bottles 4,667 0.79 0.79 0.79 0.79 0.79 0.60 0.60 0.68 0.68 0.68

Fixed Change (Increase or decrease) Rates
Parameter P/Up 5.5 Mtr Box 7.2 Mtr Box
0 ~ 50 Kms (Min
Chg)
40.00 55.00 65.00
0 ~ 50 Kms 0.50 0.91 1.00
51 ~ 80 Kms 0.50 0.91 1.00
81 ~ 200 Kms 0.50 0.91 1.00
200 Kms & Above 0.50 0.91 1.00
Proposal A (-) 1 Level 14.00~18.99 AFP- 16.50
Proposal B
(Base STD)
(-) 0 Level 19.00~23.99 AFP- 21.50
Parameter P/Up 5.5 Mtr Box 7.2 Mtr Box Parameter P/Up 5.5 Mtr Box 7.2 Mtr Box
0 ~ 50 Kms (Min
Chg)
410.00 485.00 575.00
0 ~ 50 Kms (Min
Chg)
450.00 540.00 640.00
0 ~ 50 Kms 9.45 16.64 18.89 0 ~ 50 Kms 9.95 17.55 19.89
51 ~ 80 Kms 8.87 14.89 16.55 51 ~ 80 Kms 9.37 15.80 17.55
81 ~ 200 Kms 7.78 13.49 15.09 81 ~ 200 Kms 8.28 14.40 16.09
200 Kms & Above 6.88 11.74 12.23 201 Kms & Above 7.38 12.65 13.23
Proposal C (+) 1 Level 24.00~28.99 AFP- 26.50 Proposal D (+) 2 Level 29.00~33.99 AFP- 31.50
0 ~ 50 Kms (Min
Chg)
490.00 595.00 705.00
0 ~ 50 Kms (Min
Chg)
530.00 650.00 770.00
0 ~ 50 Kms 10.45 18.46 20.89 0 ~ 50 Kms 10.95 19.37 21.89
51 ~ 80 Kms 9.87 16.71 18.55 51 ~ 80 Kms 10.37 17.62 19.55
81 ~ 200 Kms 8.78 15.31 17.09 81 ~ 200 Kms 9.28 16.22 18.09
Proposal E (+) 3 Level 34.00~38.99 AFP- 36.50 Proposal F (+) 4 Level 39.00~43.99 AFP- 41.50
0 ~ 50 Kms (Min
Chg)
570.00 705.00 835.00
0 ~ 50 Kms (Min
Chg)
610.00 760.00 900.00
0 ~ 50 Kms 11.45 20.28 22.89 0 ~ 50 Kms 11.95 21.19 23.89
51 ~ 80 Kms 10.87 18.53 20.55 51 ~ 80 Kms 11.37 19.44 21.55
81 ~ 200 Kms 9.78 17.13 19.09 81 ~ 200 Kms 10.28 18.04 20.09
Particular Pick Up 6 W 5.5/7.2 Mt.
1. Waiting Time In MSA Place >90 Min (Hourly Charge) 100 250
2. Waiting Time In Customer Place > 120 Min (Hourly Charge) 100 250
3. Charge per drop (Distance < 5 KM) 180 300
4. Charge Manpower Loader per Trip 200 350
5. Charge Return empty package - -
6. Charge Return with part x 1.3 x 1.3
Cost Calculation-Proposal
Validity Period: 23-Mar-2020 to 31-Mar-2021

Validity
23-Mar-2020 to 31-Mar-
2025
Average Fuel
Price (AFP)
31.50
Fuel Price
Range
(FPR)
29.00 ~ 33.99
A TRANSPORTATION COST (ZONE A) - MSA
Rate /
KM
5.5 M Box Truck
Rate /
KM
7.2 M Box Truck
Per Trip Per Drop Per Part Per Trip Per Drop Per Part
ลําดับที่ โซน ลูกค้า เขตย่อย เขตหลัก KM Charge Charge Charge Charge Charge Charge
2.01 A LAKESIDE VILLAGE BANGNA TRAD KM 8 บางนา- ตราด Bangna-Trad 10 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.02 A SAB กม.12 บางนา- ตราด Bangna-Trad 12 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.03 A AAP กม.17 บางนา- ตราด Bangna-Trad 13 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.04 A DANZAS กม.18 บางนา- ตราด Bangna-Trad 13 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.05 A นิวสมไทย กม.13 NEWSOMTHAI บางนา- ตราด Bangna-Trad 14 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.06 A Baan Avare torn (บ้านเอื้ออาทร) บางโฉลง Bangchalong 16 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.07 A Nisuki - Km4 (นิซูกิ) เคหะบางพลี บางนา- ตราด Bangna-Trad 16 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.08 A COSMO บางนาตราด บางนา- ตราด Bangna-Trad 17 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.09 A AMAIR
กม.19 Bangna-trad
km.19
20 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.10 A เดโชโมลด์ ซ.วัดศรีวารีน้อย DESHOMOLD บางนา- ตราด Bangna-Trad 20 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.11 A QCC ซอยกิ่งแก้ว กิ่งแก้ว Kingkaew 20 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.12 A YNP ซอยกิ่งแก้ว กิ่งแก้ว Kingkaew 20 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.13 A MSC-Km19 บางนา- ตราด Bangna-Trad 21 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.14 A BENZ-Km19 บางนา- ตราด Bangna-Trad 21 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.15 A ไปรษณีย์ กม.13 บางนา- ตราด Bangna-Trad 21 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.16 A โรงชุบ VPP กม.13 บางนา- ตราด Bangna-Trad 21 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.17 A FORD ซอยเซลล์ล็อค บางนา- ตราด Bangna-Trad 21 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.18 A DIHATSUKE กิ่งแก้ว 22 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.19 A THAI CHANATON กม.22 บางนา- ตราด Bangna-Trad 22 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.20 A THAI HONDA บางนา-ตราด กม 20 23 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00
2.21 A K- LINE กม.18 บางนา- ตราด Bangna-Trad 24 MIN 650.00 950.00 845.00 MIN 770.00 1,070.00 1,001.00

What Is a Profit and Loss Statement (P&L)
The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and
expenses incurred during a specified period, usually a fiscal quarter or year
The P&L statement is synonymous with the income statement. These records provide information about a
company's ability or inability to generate profit by increasing revenue, reducing costs, or both
Some refer to the P&L statement as a statement of profit and loss, income statement, statement of
operations, statement of financial results or income, earnings statement or expense statement
P&L management refers to how a company handles its P&L statement through revenue and cost management
A balance sheet is a statement of the financial position of a business that lists the assets, liabilities, and
owner's equity at a particular point in time. The balance sheet illustrates your business's net worth
The balance sheet may also have details from previous years so you can do a back-to-back comparison of two
consecutive years. This data will help you track your performance and will identify ways to build up your
finances and see where you need to improve
The income statement, which shows net income for a specific period of time, such as a month, quarter, or
year. Net income equals revenue minus expenses for the period
The cash flow statement, which shows the movements of cash and cash equivalents in and out of the
business. Chronic negative cash flows are symptomatic of troubled businesses

Calculating the Present Value
The PV, or Present Value, of an investment, is the total amount that a series of future payments is
worth presently. The syntax of the PV function is as follows:
=PV(rate, nper, pmt,[fv],[type])
The fv and type arguments are optional arguments in the function (indicated by the square brackets).
The fv argument is the future value or cash balance that you want to have after making your last
payment. If you omit the fv argument, Excel assumes a future value of zero (0)
The type argument indicates whether the payment is made at the beginning or end of the period: Enter
0 (or omit the type argument) when the payment is made at the end of the period, and use 1 when it is
made at the beginning of the period
Calculating the Net Present Value
The NPV function calculates the net present value based on a series of cash flows. The syntax of this
function is =NPV(rate,value1,[value2],[...])where value1, value2, and so on are between 1 and 13
Value arguments representing a series of payments (negative values) and income (positive values),
each of which is equally spaced in time and occurs at the end of the period
The NPV investment begins one period before the period of the value1 cash flow and ends with the last
cash flow in the argument list. If your first cash flow occurs at the beginning of the period, you must
add it to the result of the NPV function rather than include it as one of the arguments

Calculating the Future Value
The FV function calculates the future value of an investment. The syntax of this function is
=FV(rate, nper,pmt,[pv],[type])
The rate, nper, pmt, and type arguments are the same as those used by the PV function
The pv argument is the present value or lump-sum amount for which you want to calculate the future
value. As with the fv and type arguments in the PV function, both the pv and type arguments are
optional in the FV function
Break-Even Analysis:
Break-even analysis seeks to investigate the interrelationships
among a firm’s sales revenue or total turnover, cost, and profits as
they relate to alternate levels of output
A profit-maximizing firm’s initial objective is to cover all costs, and
thus to reach the break-even point, and make net profit thereafter
The break-even point refers to the level of output at which total
revenue equals total cost
what happens to profits (or losses) at various rates of output
Therefore, the primary objective of using break-even charts as an analytical device is to study the
effects of changes in output and sales on total revenue, total cost, and ultimately on total profit
Break-even analysis is a very generalized approach for dealing with a wide variety of questions
associated with profit planning and forecasting

The horizontal axis measures the rate of output, and revenues and costs, measured in rupees, are shown
on the vertical axis. Figure 21.1 combines an inverted U-shaped total revenue (TR) curve and the
familiar S-shaped short run total cost curve (TC)
The curvilinear shape of the total revenue curve follows from the assumption that the firm faces a
downward-sloping demand curve and must reduce its price to be able to sell more
The law of diminishing returns accounts for the curvilinear shape of the total cost curve
The vertical distance between TR and TC measures the profit or loss associated with any specific level of
output. To the left of Qa and to the right of Qb total costs exceed total revenues, and there are losses
So there are two break-even points. Between these two points, profits are positive because TR exceeds
TC. The point at which profits are maximized (that is, the point at which the vertical distance between
TR and TC is the largest) is shown as Q

When managing a project, Engineers are required to make a lot of key decisions
There is always something that needs executing, and often that something is critical to the success of
the venture. Because of the high stakes, good engineers don’t just make decisions based on gut
instinct. They prefer to minimize risk to the best of their ability and act only when there is more
certainty than uncertainty
But how can you accomplish that in a world with myriad variables and constantly shifting economics?
The answer: consult hard data collected with reporting tools, charts and spreadsheets.
You can then use that data to evaluate your decisions with a process called cost benefit analysis (CBA)
An intelligent use of cost benefit analysis will help you minimize risks and maximize gains both for your
project and your organization.

Fundamentally, Engineering Economics involves formulating, estimating, and evaluating the
economic outcomes when alternatives to accomplish a defined purpose are available
Engineering economics is the application of economic principles and calculations to engineering projects
it is important to all fields of engineering because no matter how technically sound an engineering project
is, it will fail if it is not economically feasible
Energy Cost Saving Projects:
The term energy cost savings means “a reduction in the cost of energy and related operation and
maintenance expenses, from a base cost established through a methodology set forth in an energy saving
performance
Plant Manufacturing Energy Cost Saving are related to the efficient use of: Natural Gas, Electricity, Water,
Oil Fuel, Bio mass Fuel, and other means of clean energy
It is important to understand the Energy consumption, and to establish the source of energy waste before
any calculation and analysis is made, concluding in energy saving investment projects. See the following
examples on Energy Consumption Cost Savings
140,000
145,000
150,000
155,000
160,000
165,000
1-ก .ย. 8-ก .ย. 15-
ก. ย.
22-
ก. ย.
29-
ก. ย.
6-ต . ค. 13-
ต .ค .
20-
ต .ค .
27-
ต .ค .
3-พ. ย. 10-
พ.ย.
17-
พ.ย.
24-
พ.ย.
1-ธ .ค . 8-ธ .ค . 15-
ธ. ค.
22-
ธ. ค.
29-
ธ. ค.
115KV MAIN ELECTRICITY METER
UCL
LCL
Xbar

Electric Energy consumption is mainly used by:
electric motors, compressed air systems, AHU systems, Cold rooms, buildings lighting, water pump systems
electric ovens, electronic instruments, computer systems, and others
Natural Gas Energy consumption is mainly used by:
NG burners – ovens, steam boilers
Water is consumption is mainly used as:
Raw water, soft water, R/O water, re-cycled water, waste water processing
Examples of Energy waste are found in:
Compressed Air piping systems leakages, leading to continuous air compressors work and electricity waste
Ovens Burners unbalanced Air-Gas ratio, and ovens heat leakages leading to continuous NG waste
Steam Boilers efficiency and uncompleted equipment installation such as economiser, steam returns, steam
piping design mistakes, damaged steam pipe insulation, steam actuator valves malfunctioning
Water usage waste comes from processing soft water, R/O water, re-cycling water, waste water, equipment
washing machines water usage, piping aging failures
Once you understand the root cause of the Plant Energy waste; a cost analysis follows to estimate potential
energy cost saving required investments, and cost benefits conclusions prior to making an investment
decision, and engaging any equipment contractors

Plant 1 2015 2016 2017 2018 2019 2020
January 1,584,502 1,173,434 1,851,207 1,535,772 1,689,748 2,473,714
February 1,383,031 1,268,758 1,749,744 1,575,928 1,679,466 2,311,073
March 1,700,982 1,841,194 2,033,637 1,783,275 2,153,925 2,702,010
April 1,462,977 1,823,260 1,918,790 1,635,801 2,193,097 2,504,667
May 1,544,436 1,621,002 1,874,619 1,819,953 2,357,211
June 1,574,544 1,627,904 1,896,683 2,079,005 2,386,242
July 1,453,443 1,906,307 1,353,242 1,914,124 2,329,013
August 1,630,153 1,725,914 1,650,914 1,947,478 2,473,756
September 1,689,154 1,360,173 1,302,461 1,902,891 2,342,349
October 1,718,004 1,813,577 1,459,299 2,103,848 2,439,218
November 1,835,952 1,756,616 1,307,245 1,897,287 2,403,492
December 1,605,919 1,868,358 1,592,638 1,702,497 2,432,658
Total BHT 19,183,097 19,786,497 19,990,479 21,897,859 26,880,175 9,991,464
103% 101% 110% 123% 129%
Plant 2 2015 2016 2017 2018 2019 2020
January 3,117,774 3,996,372 3,910,245
February 3,322,417 3,446,784 2,918,717
March 3,561,146 3,780,029 4,481,138
April 3,405,219 3,462,174 4,045,921
May 3,844,521 4,025,210
June 3,768,321 4,046,746
July 3,787,748 399,338
August 4,093,875 4,116,481
September 4,043,660 4,128,146
October 3,916,376 4,590,396
November 4,219,210 441,969
December 3,627,409 4,303,542
Total BHT 44,707,676 40,737,187 15,356,021
91% 105%
Plant 3 2015 2016 2017 2018 2019 2020
January 7,705,923 8,650,571 10,343,786
February 8,361,009 8,308,289 9,822,165
March 9,402,385 10,819,802 11,886,061
April 8,323,215 10,844,272 11,165,402
May 9,140,886 10,879,063
June 9,301,139 10,940,645
July 9,672,440 10,908,295
August 9,744,290 11,072,479
September 9,925,602 10,295,468
October 9,431,265 11,160,312
November 10,258,533 11,003,514
December 9,715,509 10,288,206
Total BHT 110,982,196 125,170,916 43,217,414
113% 112%

y = 8.252x5 - 596.4x4 + 13493x3 - 82224x2 - 23371x + 1E+07
R² = 0.306
ELECTRICITY BILL Baht 2017 /2018 /2019
y = 4.931x5 - 365.4x4 + 8878.x3 - 73668x2 + 13175x + 6E+06
R² = 0.325y = -0.546x6 + 59.06x5 - 2409.x4 + 45531x3 - 38886x2 + 1E+06x + 5E+06
R² = 0.341
2017/ 2018/ 2019 KW day M-F KWH night M-F KWH
weekend
P P OP Poly. (OP) Poly. (OP)

y = -12.02x5 + 972.9x4 - 27720x3 + 33297x2 - 1E+06x + 1E+07
R² = 0.77
Total ( Gas bill Baht ) 2017/2018/2019
y = -0.054x5 + 4.618x4 - 138.8x3 + 1750.x2 - 6748x + 40695
R² = 0.826
y = -0.054x5 + 4.618x4 - 138.8x3 + 1750.x2 - 6748x + 40695
R² = 0.826
y = -0.054x5 + 4.618x4 - 138.8x3 + 1750.x2 - 6748x + 40695
R² = 0.826

y = 18.32x5 - 1387.x4 + 36822x3 - 40654x2 + 2E+06x + 5E+06
R² = 0.595
Water Bill Bht
y = 0.264x5 - 21.93x4 + 635.3x3 - 7337.x2 + 25872x + 22890
R² = 0.436
Water Consumption 2017/2018/2019
fresh water recycled water used water waste water Poly. (fresh water)

max natural
Boiler No 2
pressure
test
pressure
test
working
pressure efficiency Celcius
capacit
y BHP gas
9.1
kg/c
m2 12kg/cm2 7kg/cm2 80% 183 5600
kg/
hr 358 409m3/hr
9.6
kg/c
m2
max natural
Boiler No 3
pressure
test
pressure
test
working
capacit
y BHP gas
9
kg/c
m2 12kg/cm2 7kg/cm2 90% 183 16000
kg/
hr 1023 1170
9.3
kg/c
m2
9.6
kg/c
m2
max natural
Boiler No 4
pressure
test
pressure
test
working
capacit
y BHP gas
9.2
kg/c
m2 12kg/cm2 7kg/cm2 90% 183 16000
kg/
hr 1023 1170m3/hr
9.5
kg/c
m2

Total soft water consumption (average) 250 m3/day
Total Boiler make up water Consumption 213 m3/day
8.9 m3/hrs.
Total Steam Supply (Average) 22 m3/hrs.
75% Condensate return 16.5 m3/hrs.
Soft water make up 5.5 m3/hrs.
Condensate Overflow 3.4 m3/hrs.
Cost of Soft water 26 THB 87.21 THB/hrs.
Cost saving of softwater 732,550 THB/Year
Specific Entraphy of Water at 85 OC 356 kj/kg
Specific Entraphy of Water at 35 OC 147 kj/kg
Delta Enthralpy of condensate (85OC - 35OC) 209 kj/kg
Total Energy loss of overflow water 5,732,184,591 kj/year
NG Price 300.00 Baht/mmBTU
0.0003165180 Baht/kj
Cost saving of NG 1,814,340 THB/Year
77 % Efficiency of NG Boiler 2,356,285 THB/Year
Total Saving (Soft Water + NG) 2,546,890 THB/Year
Safety Factor 70% 1,782,823 THB/Year
55,436 USD/Year
Investment Cost 1,399,000 THB
43,501 USD
ROI 0.78 Year
IRR 119%

CAH Rayon water usage
Old plantOld plantOld plant
Pineapple
Process water
Pineapple
On line chlorination
Phase
On line chlorination
144 m3/day
(In plan)
Cleaning water
(398.304+346.464)
x 3 = 2,234.304
m3/day
Water tank change
46.352 x 3 = 139.056
m3/day
Total process water
2,373.36 m3/day
Target:
2,500 m3/day
Amata City
water m3/day
High 7,900
Average 7,200
Low 6,960
Target: 10,000
300 m3/hr.
Sand filter
Carbon filter
300 m3/hr. x 3
300 m3/hr. x 3
Fire fighting pump
storage tank
850m3
Static storage
Amberlite IR 120Na
Manganes Sulfte
Resine filter
1 x 150 m3/hr.
Plan + 2 x 150 m3/h.
Feeding Tank
100 m3 CAP
Pw1
DSP
Utility
Cooling 175 m3/d
Toilet 340 m3/d
Garden 20 m3/d
Canteen/other
140 m3/d
Chlorine 1
1,500 m3/d
Chlorine 2
1,500 m3/d
Forming
3,200 m3/d
Di-chlorine water
D1 1,500 m3/d
D2 1,500 m3/d
Hot water
3,000 m3/d
Recycle water
RO water
3,000 + 1,500 m3/d
Target 6,000 m3/d
Waste water for
Amata City
Scrubber Chlorine
water processing
plant 150 m3/d
(in Plan)
Mix compound
Latex
800 m3/d
Soft water tank
150 m3 CAP
200 m3/hr
150 m3/hr
D1 Dii-chlorine
water treatment
1,500 m3/d
BOD/COD <<<
300 m3/hr. PW
storage tank
CAP 600 m3
Boiler 300 m3/d

Di Chlorine # 1
COD, BOD
Not meet standards
1,500 m3/day
Di Chlorine # 2
COD, BOD
Within standards
1,500 m3/day
Recycle Plant EQ
1,500+3,000
= 4,500 m3/day
Efficiency 50%
2,000 to 2,200 m3/d
Di Chlorine # 1
EQ = 100 m3
1,500 m3/day
BOD < 20 ppm
COD < 120 ppm
pH reactor & DAF
4,500 m3/day
BOD, COD within
standards
Hot Water
3,000 m3/day
47 Celsius
Hot Water
3,000 m3/day
47 Celsius
Cooling Tower
Target 38 Celsius
Efficiency 42 Celsius
pH reactor & DAF
1,500 m3/day
BOD, COD within
standards
RO plant
Input 6,000 m3/day
Output
4,000 m3/day
RO plant
Input 6,000 m3/day
Output
4,000 m3/day
Amata water supply
average
7,200 m3/day
300 m3/hr
Amata water supply
average
7,200 m3/day
300 m3/hr
Process waterProcess water
Process Water
Other usages
1,200 m3/day
Process Water
Other usages
1,200 m3/day
2 x Rocket Heat
Exchanger in series
2 x Rocket Heat
Exchanger in series

RO plant
Input 6,000 m3/day
Output efficiency
4,560 m3/day
4,000 m3/day
RO plant
Input 6,000 m3/day
Output efficiency
4,560 m3/day
4,000 m3/day
RO – 301
CAPACITY
54 membranes
30 m3/hr
720 m3/day
RO – 301
CAPACITY
54 membranes
30 m3/hr
720 m3/day
RO – 302
CAPACITY
72 membranes
40 m3/hr
960 m3/day
RO – 302
CAPACITY
72 membranes
40 m3/hr
960 m3/day
RO – 303
CAPACITY
New 72 membranes
40 m3/hr
960 m3/day
RO – 304
CAPACITY
72 membranes
40 m3/hr
960 m3/day
RO – 304
CAPACITY
72 membranes
40 m3/hr
960 m3/day
Di-Chlorine
1,500 m3/day
COD > 300
BOD > 50
Ph > 10
New adjustment
Sulfuric Acid
Coagulant Alum
Coagulant Polymer
New EQ tank
capacity
100 m3
New or repaired
DAF
RO plantRO plant
RO – 305
CAPACITY
New 72 membranes
40 m3/hr
960 m3/day
New MBR
Membrane
Might be required

utilities expenses Bht/month Bht/year
Gas 20million 12 240million 52.6%
electricity 13million 12 156million 34.2% Compressor No 4 1200CFM overhaul
water 5million 12 60million 13.2% Compressor No 6 2400CFM improve
% Compressor No 7 2400CFM improve
456 5.5% 25.08million Bht
compressed air leakage 1060CFM eliminate
Boilers 2 15.0% 30.0%
Burners 2 plants 1 70.0% 70.0% Actual capacity avilable 3740CFM
100.0%
Chlorination 14.0% air compressor 6&4 3600CFM improve
forming Plant 1 Lines 9 42.0% air compressor 7&4 3600CFM improve
forming Plant pineaple Lines 3 14.0%
70.0% 156,250 compressed air leakage 5.00million/year
Boiler 2 5.6ton/hr 14.9%
Boiler 3 16ton/hr 42.6% 57.4% 15.984 RO water daily supply min average max
Boiler 4 16ton/hr 42.6% 85.1% 23.68 2500 2900 3900
23.5from City Amata
37.6ton/hr 100.0%efficiency 74% 27.824ton/hr 13.5from RO
Boiler 1 30.0% 10.0saving
saving from using 0.325 32.5%
16 T and 5.6 T instead of 15.984 1,000 increase RO output
16 T x 2 boilers 23.68 9.8%
10,000 saving/day 3.00 million/year
utilities saving originally from 240million Bht 250,000 25
3,000,000 12
savings from replacing 1 of 16 ton boiler 23.4 million Bht
with the 5.6 Ton/hr boiler 32 93,750
saving target 25.08million Bht

Air Compressor CFM bar KW psi
KW/CF
M
Air
Compressor
test
bar
test
CFM
test
KW
KW/CF
M 24 355 3.12 32
AC4 1200 8.2 250 1050.2083 AC4 KW KW Bht US$
AC6 2469.1 8.2 370 1050.1499 AC6 7.0 1857.1 413
0.2223
8975
AC7 2469.1 8.2 410 1050.1661 AC7 7.0 2141 406
0.1896
3101
compressed air
leaking 440.7 5.55
compressed
air leaking
1084 7.02
0.1579
5229 223.3
0.2060
1038
5,359.
6
1,902,64
6
5,936,25
5
185,50
8
1540 7.42
Compressed Air
leakages 1000
Compressed Air
leakages
850 175.1 4,203
1,491,92
7
4,654,81
3
145,46
3
Energy saving at
85% 85%
Energy
saving at
85%
Savings comes from continuous fixing of
compressed air leakages throughout the year

at 90%
Ton/hr Nm3/hr
kcal/N
m3 kcal/hr
IF
Heat Supply number of lines 17
Boiler # 4 16.0 1,259 940011,834,600 steam usage 15,000 kg/hr
Boiler # 3 16.0 1,259 940011,834,600 11,834,600 condensate 15,000 kg/hr
Boiler # 2 5.6 356 94003,346,400 3,346,400 steam pressure 0.75Mpa
steam temp 170 Celsius
21.6 1,615 15,181,000 drain out temp 160 Celsius
at 90 % 19.44
cost in Bth per Nm3 9.50 15,343 Bht/hr 368,220Bht/day tank return temp 135 Celsius
11,046,600 Bht/mth estimated energy 450,000 kcal/hr
Heat Requirements
water tanks steam
pineapple 526 94004,944,000 heat exchanger
water tanks steam old plant 789 94007,415,100 steam usage 2,000 kg/hr
chemical tanks pineapple 17 9400 162,000 condensate 2,000 kg/hr
chemical tanks old plant 32 9400 297,000 steam pressure 0.75 Mpa
steam temp 170 Celsius
1,364 12,818,100 84% drain out temp 160 Celsius
tank return temp 135 Celsius
estimated energy 60,000 kcal/hr

at 90%
Ton/hr Nm3/hr
kcal/N
m3 kcal/hr
IF
Heat Loss Estimation
pineaple 150,000 recovery tank
old plant 300,000 lost in evaporation 800kg/hr
plate heat exchange 60,000 condensate vol 14,600 kg/hr
tank return temp 135 Celsius
returned condense tank 511,000 deareation tank 100Celsius
condense overflow 180,000 estimated energy 511,000 kcaL/hr
127.77 94001,201,000 discharge pipe
Savings
hot water
discharge 2400kg/hr
Baht to Nm3 9.5 discharge temp 100Celsius
Baht/hr 1 1,214 top up water temp 25Celsius
Baht/day 24 29,131 estimated energy 180,000 kcal/hr
Baht/mth 25 728,266
Baht/year 12 8,739,191
Baht to US $ 32.59 268,156

US$
Investment estimated water lost 3200kg/hr
closed system 15 T in US$ 170,000
estimated
requirement 16.24ton/hr
ROI in years 0.63
closed system
Capacity 18ton/hr
Recommendation
closed system 18 T in US$ 204,000
open system as backup in US$ 30,000
contingency in US$ 10,000
Water RO Water
Hot Water+ di-
chlorine
waste
water
Raw Water 9,200 m3/day 4,200 m3/day 6,200 m3/day 5,000 m3/day
80% of raw water charged as
ww 7,360 m3/day
Latex Mix compound tanks 800 m3/day 800 m3/day
Forming old plant 3,000 m3/day hot 3,000 m3/day
DSP pineapple plant 1,500 m3/day
Chlorination 3,400 m3/day 3,400 m3/day chlo 3,200 m3/day
Admin General usage 500 m3/day
cost in Bht/m3 23.50 Bht/m3 13.5Bht/m3 hot 122.74Bht/m3
80% raw water is waste water
charge 10.00 Bht/m3
processed soft water cost 0.13 Bth/m3
di-chlorine process water chlo Bht/m3
Total cost/day 291,028 Bht/day 56,700 Bht/day 368,220 Bht/day 715,948 Bht/day
21,478,428 Bht/mth

Utility Activity มี.ค.-20 เม.ย.-20 พ.ค.-20 มิ.ย.-20
Electricit
y W12 W13 W14 W15 W16 W17 W18 W19 W20 W21 W22 W23 W24 W25 W26
Compresor #4
Overhaul
compressed air
leakages
Compressor # 4 & 7
or 10
Gas
condense closed
system
steam leakages &
gasket
open system backup
Water
di-chlorine water
treatment
PW + Hot water
supply RO
pineapple on-line
chlorine water

Required Compressed Air Vlume Flow :
82,080 CFM/Day
Running Air Comp. Cap. 2400 + 2400 CFM
Spec
Energy Kwh
Total Cap. & Energy Actual Cap. & Energy
MC HP Kw
Cap
CFM
Perfor
mance
Run
Rate
KW/day Kw/CFM 0.31 CFM/day Kw/Day
Kew/Mont
h
Cap. CFM Kw/Day Kw/Month
Air Comp.# 1 335 250 1200 60% 0% 6,000
0.2083 0.0646
17,280 6,000 180,000 0 0 0
Air Comp.# 2 335 250 1200 0% 0%
0.2083 0.0646
0 0 0
Air Comp.# 3 335 250 1200 60% 0% 6,000
0.2083 0.0646
17,280 6,000 180,000 0 0 0
Air Comp.# 4 335 250 1200 90% 0% 6,000
0.2083 0.0646
25,920 6,000 180,000 0 0 0
Air Comp.# 5 120 90 600 95% 0% 2,160
0.1500 0.0465
13,680 18,144 544,320 0 0 0
Air Comp.# 6 500 370 2469.1 67.38% 100% 8,880
0.1499 0.0465
39,928 8,880 266,400 39,928 8,880 266,400
Air Comp.# 7 500 410 2469.1 87.57% 100% 9,840
0.1661 0.0515
51,893 9,840 295,200 51,893 9,840 295,200
38,880 - 165,981 54,864 1,645,920 91,821 18,720 561,600
Air Comp
#6 & #7
18,720 91,821 18,720 561,600
Energy
Cost
1,853,280
THB/Mon
th

Energy Consumption Accural for June 2020
Type of Energy Consumption Unit price Demand (Baht) Cost (Baht)
Electrical 4,358,846 3.12 N/A 13,605,854.72
Gas 69,051 316.69 709,389.13 22,576,773.56
Water 237,328 23.50 N/A 5,577,208.00
Waste water 189,862.40 10.00 N/A 1,898,624.00
Recycling Water 36,322 14.75 N/A 535,749.50
Total 44,194,209.78

Project Prioritization Criteria
Weight-
age
# 1 # 2 # 3 # 4 # 5
Plant Cost Saving Project Prioritization Matrix
Financial
Impact/
Annual
saving
Easeof
Completion
/Technical
Customer
Impact
Complexity
CAP
Investment
UoM US$ Score Score Score US$ Score
9 >250 high none none <50 9
3 <250 >100 medium low low <250 >50 3
1 <100 >50 low medium medium <1000 >250 1
0 <50 none high high >1000 0
93,100.69
R A N K I N G O F I M P O R T A N C E (1-5, 5 is
Highest)
Project Name Brief Description of Project
Annual
savings /
(USD '000)
FY20
savings /
(USD '000)
5 4 3 4 3 TOTAL
1 Inkuff
Combined Glove reverse/ink-marking &
cuffing as one process to get the HC
reduction
1950 0 9 3 3 1 0 70
2
Manpower optimization for changeover in
forming (6HC)
RTI project 24 HC (12 in plant-1 & 12 in
DSP)
269 269 9 9 9 9 9 171
3 OEE/OEU improvement (Chlorination) 2% Efficiency improvement (5HC) 52 52 1 9 9 9 9 131
4 OEE/OEU improvement (Packaging)
3% Efficiency improvement (reduce RTI =
9HC)
94 94 1 3 9 9 9 107
5 Semi-auto print case label 9HC reduction 94 94 1 3 9 9 9 107
6 DL allocation CAH : Outsource DL rate by outsource TBD TBD 3 9 9 9 9 141
7 Latex premium
Vol allocation between Thai rubber &
SriTrang
84 84 1 9 9 9 9 131
8 Shoprene Price Price Negotiate (LRP $1.995) 0 0 9 9 9 9 9 171
9 BST Price reduction New tier pricing TBD TBD 9 9 9 9 9 171
10 Kraton volume discount Price reduction due to volume 1017 1017 9 9 9 9 9 171
11 Michemlube
Local Allocation, Price negotiation, target
15% reduction from FY18 Budget (LRP
THB102)
TBD TBD 0
12 MG Paper (second source) Alternative source FY19 SCG (30%) TBD TBD 0
13 GP contract TBD TBD 0
14 Replacement of silicone
Implement silicone 0349 to replace
SM2140 on
others product codes (PTY family)
100 100 1 9 3 9 9 113
15 Dispenser box 16 to 15 inches TBD TBD 0
16 1GL DC Price Negotiate 0 0 3 3 3 1 3 49
17 Prius5 DP blended for PI / PI classic / PI Ortho 104 0 3 1 3 1 3 41
18 Silicone MEM39 and 349
Alternative source (Momentive Rayong
Thailand), target price reduction 10% from
FY18 Budget
25 25 3 9 3 3 9 99
19 Corn Starch Powder 100% National Starch 41 41 0 9 3 3 9 84
20 Shipping Case
Alternative source, target price reduction
10% from FY18 Budget
TBD TBD 0
21 Steam reduction
Pineapple Heat exchanger saving carry
over from FY18
0

Project Name Brief Description of Project
Annual
savings /
(USD '000)
FY20
savings /
(USD '000)
5 4 3 4 3 TOTAL
24 OH Cost Rationalization TBD 0
25 Lean Warehouse External WH Stroage cost reduction 0
27 Localize mold holder and accessories DP reduction 70 70 1 3 3 3 3 47
28 Ink (second soure) Alternative source 0
29 Convert acid online mold cleaning Material cost reduction 100 0 3 9 3 9 3 105
30 Chlorination Blank Cycle Time Reduction Improve Chlorinator Cycle time 151 151 3 9 3 9 9 123
31
10-20% Chlorination Load size Increasing
of Protexis Latex Essential
Capacity Improvement 35 35 0 9 3 9 9 108
33 Biomass Boiler readiness to work as back up anytime N/A 0
34
reduce amata raw water increase RO
w/supply
reduce amata raw water increase RO
w/supply
90,909
35 improve the usage of steam boilers improve the usage of steam boilers N/A
36
eliminate fast steam from the condense
tank
eliminate fast steam from the condense
tank
N/A
37 Reduce steam leakages Reduce steam leakages N/A
38 Reduce compressed air leakages
minimize compressed air leakages in
process
N/A 0
39
Maintenance spare parts inventory cost
reduction
agrupate parts by
volume/value/supplier/common
N/A 0
40
Blend back pump back latex of PI Blue Blend 5% of pump back for the 1st 3 tanks
@ 5 days only.
115 115 1 3 9 3 9
83
41 Extend pot life of PI Blue latex 10 days to 12 days 45 45 0 9 9 9 9 126
42 Auto strip air blow - reverse strip 18HC reduction
43 AP machine 15 HC reduction
44 Reduce rinse water cycle time
45 Hybrid chlorination
OLC donning side, Offline Chlo grip side
combined with reverse strip.
1000
46 On-line ink marking
47 On-line mold cleaning
48 Spray system for Nitrile blend and base
49 PI double dip
50 PI line speed 60
51 Short length industrial product
Reduce glove length Esteem/Duraprene CP
5 mm and Protegrity 10 mm to standardize
with other PF Surgical product.
60
52 Linshi
Alternate low cost PI material (18-20%
lower price).
300
53
New powder free coagulant and polymer
for chlorine free process
New powder free coagulant and polymer
for chlorine free process
54
Development of surfactant use in PI
compound
Support on development the surfactant use
in PI compound to give us a robust process
for higher line speed.
5,705 93,101

Closing Comments:
Business culture, the skills and competencies of employees, and organizational structure are all
important factors that influence how an organization can achieve its stated goals, objectives
Inflexible companies may find it difficult to succeed in a changing business environment. Creating a
barrier between the development of strategies and their implementation can make it difficult for
managers to determine whether objectives have been efficiently met
While an organization’s upper management is ultimately responsible for its strategy, the strategies
themselves are often sparked by actions and ideas from lower-level managers and employees
An organization may have several employees devoted to strategy rather than relying solely on the chief
executive officer (CEO) for guidance
Because of this reality, organizational leaders focus on learning from past strategies and examining the
environment at large. The collective knowledge is then used to develop future strategies and to guide
the behaviour of employees to ensure that the entire organization is moving forward
For these reasons, effective strategic management requires both an inward and outward perspective.
Upper Management is usually tight up by Corporate Management policies and strategies; for the Plant
Engineers, there is always a political compromise to enter into either “Continuous Improvements or
FAST and FURIOUS Turn around management mode”
However, it is more productive to work by the Plant process than by the rush of accumulating Six Sigma
Continuous Improvements and KAIZEN projects. It is always best to Audit the complete Plant facilities
design and performance; fixing all low performing systems, and use sound Engineering approach

Thank You
L | C | LOGISTICS
PLANT MANUFACTURING AND BUILDING FACILITIES EQUIPMENT
Industrial Engineering Management E-Book
INDUSTRIAL ENGINEERING MANAGEMENT FUNDAMENTALS AND HOW IT WORKS
PROCESS ENGINEERING ECONOMICS

Process engineering economics i industrial engineering management

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