RAW MATERIALS OIL AND FATS
(THE MAIN RAW MATERIALS FOR SOAPS)
CLASSIFICATION OF FATS/OILS
Glycerides of various fatty acids solid at room temperature
are called fats and those liquid at room temperature are called
oils.
Thus, glycerides having higher melting points are termed
fats and those having lower melting points are termed oils.
And these in turn depend upon the nature of fatty acids
content of esters. These acids fall in two series as follows.
1. Saturated series, such as stearic acid.
2. Unsaturated series.
(a) Monoenoic acids containing one double bond,
such as oleic acid.
(b) Polyenoic acids containing more than one double
bonds, such as linoleic, linolenic acids.
The more unsaturated acids give esters with lower melting
points and these are the chief constituents of oils. The more
saturated acids containing esters are of higher melting points
and are chief constituents of fats (Table - 2.1).
These oils are called fixed oils as distinguished from
essential oils and petroleum oils. Fixed oils cannot be distilled
without some decomposition under normal atmospheric
pressure. Only fixed oil produces soap.
Fatty oils are further classified as
Animal origin: These usually occur as fats, such as tallow,
lard etc. The liquid types include fish oils, fish liver oils,
sperm oil etc.
Vegetable Origin: These are again sub classified as
A. On the Basis of Degree of Unsaturation
Drying – Iodine value above 130 (linseed oil,
Tung oil).
Semi-drying – Iodine value 90-130 (soyabean oil,
cottonseed oil etc.)
Non-drying – Iodine value below 90 (coconut oil,
castor oil etc.)
B. Enedible – Soap stocks (palm oil, coconut oil, mahua
oil, rice bran oil other enedible varieties of vegetable
oils).
C. Edible – (sunflower oil, coconut oil, corn oil, soyabean
oil, mustard oil, olive oil, cottonseed oil etc.)
SOME OF THE MOST USEFUL FATS AND OILS
Tallow
The fat recovered from fatbearing tissue of cattle, goat and
sheep by steaming method is called tallow. Various grades
of enedible tallows are prepared depending upon separation
of oelo oil. Enedible grade tallows have higher free fatty acids
content than edible grades. Enedible tallows are widely used
for soap making.
Coconut Oil
Coconut Oil is obtained from dried kernel (copra) of the
fruit coconut. Dried kernel has an oil content of 60 to 70
percent. Soap and edible oil industries are the largest
consumers of the oil.
Palm Oil
Palm oil also called palm fat is obtained from the fruit
of the palm tree, extensively cultivated in tropical countries,
West Africa (natural growth), Andaman Nicober Island of India
among other countries. The pulp of the olive like palm fruit
contains 30 to 70 percent oil. Free fatty acid content of the
oil varies depending upon the method of separation of oil
from fruit pulp. Fatty acids having much higher melting point
than glycerides, these oils are quite hard at ordinary
temperatures. Their colour is usually brownish red. Oil
containing 10 percent free fatty acids are soft in texture and
the best quality oil contains less than 5 percent free fatty
acids and its colour is yellow. Soap industry is the largest
consumer of palm oil. With some additional stearic acid, palm
oil can be used as substitute of tallow.
Palm Kernel Oil
Palm kernel oil is obtained from kernels of the palm fruits.
The kernel after separation from fruit pulp as in the case of
palm oil production are subjected to crush in mills and then
pressed to separate oil. It is also extracted by solvent extraction
method. Because of its similarity to coconut oil, palm kernel
oil is extensively used as substitute for the later.
Cottonseed Oil
Cottonseed oil is obtained from the seeds of various kinds
of cotton plant on a large scale in India, Egypt, United States
of America, Russia, China and other countries. The oil content
of the kernel is 30 to 40 percent. The extracted oil is clarified,
caustic refined bleached and deodourised to be used for edible
purposes. The oil is also used after undergoing hydrogenation.
The foots obtained on refining are known as soap stock.
They are extensively used in soap industry.
Castor Oil
The oil is extracted from seeds of the castor plant found
in most tropical regions. The seeds contain 35 to 55 percent
oil. The finest grade oil is used for medicinal purposes. The
lower grades used for the manufacture of transparent soap,
soft soap etc. Castor oil is sulphonated to produce turkey red
oil used in dyeing cotton fabrics.
Hydrogenated Oils
By partial hydrogenation, various fats and oils such as
cottonseed, soyabean, groundnut and fish are converted into
fats of composition more suitable for soap making as well as
other industrial purposes. Partial addition of hydrogen to the
unsaturated linkages of fat molecules converts unsaturated
fatty oils into more highly saturated fats. The soap industry
is the largest consumer of enedible hydrogenated oil.
PURIFICATION OF SOAP FATS
Among the undesirable components present in the crude
fatty oils, the removal of,
1. Suspended, dispersed and dissolved matter;
2. Colour bearing components; are essentially preferred
to get improved soap products.
For making toilet soaps, purified oils are used. For making
washing soaps, fats are generally used without decolourization.
In the full-boiled process of soap making, most of the impurities
including colour and odour imparting elements are removed
with lye. Soap made by semi-boiled and cold-made processes
requires purer grades of fats.
The methods used for purification of soap fats are:
A. Acid Washing
B. Alkali Refining
C. Bleaching
Clarifiers
Transparent hard soaps are manufactured by the addition
of sugar, alcohol or glycerine to prevent soap crystallization
during preparation.
Transparent soap can also be manufactured by application
of quick cooling method.
Colouring Matters
The purpose of colouring soap products is to give them
greater sales appeal for soaps and soap products it is essential
to have a colouring matter that is fast to alkali and light.
For some product, light fastness may be disregarded. In
general, it may be assumed that water soluble and oil soluble
colours have good fastness to both light and alkali. For
colouring soaps, water, oils and alcohol soluble dyes are used,
the solutions of which are prepared first before addition to
the product to be coloured.
PERFUMES
(Comprehensive Details)
Soaps and detergents consume the largest volume of
perfume. Fragrance is the main contributor in finishing toilet
soaps. Its role in any type of soap is no less important. They
are used for masking and altering the odour of soaps and
detergents and to create a pleasing aroma. Perfumes, though
not essential to performance of products, their use in soaps
increases customer appeals.
An acceptable fragrance is created by mixing and blending
number of pleasantly odourous substances by specialized
knowledge and skill. A single formulation may contain 50 to
100 different compounds. For use in soap the number is
much less, without sophistication and cheaper in cost.
The odourous substances used in perfume formulations
are classified as – (listed in Table 2.3)
(a) Essential oils
(b) Isolates
(c) Synthetic chemicals
MANUFACTURE OF SOAP PRODUCTS
HEALTH AND SAFETY FACTORS
In the soap industry, handling of caustic soap flakes or
strong solution is hazardous. Strong solution or moist flakes
are corrosive to all body tissues. It may cause serious eye
injuries and body burns. In such cases immediate washing
off with water is necessary. Caustic soda generates considerable
heat while dissolving. Unskilled new recruits are to be
cautioned about this. Solution should be made by adding to
water small amounts of flakes at a time. Goggles, protective
clothings are worn where danger from caustic soda exists.
In the zone of soap flakes and soap powder processing,
operation high dust concentration may cause irritation to the
mucous surfaces of nasal passages and throat. Such irritation
creates mild to severe discomfort but is not considered
particularly injurious. New recruits are chiefly affected by this
dust. Working people in dusty areas wear mask to prevent
irritation. Flakes or powders can be dedusted by making them
fall through the top of a tower against rising current of air
which carries up away the dust.
CLASSIFICATION OF SOAP PRODUCTS
Soap may be classified on the basis of their use. The main
classes are:
1. Washing Soap
2. Toilet Soap
3. Shaving Soap
4. Shampoo
Soaps may again be classified as
Regular soaps Hard Water Soaps
Supe Fatted Soaps Soft Soaps
Transparent Soaps Liquid Toilet soaps
Translucent soaps Liquid washing Soaps
Marbelised Soaps Soaps for Textile Manufacturers
Castile Soaps Shaving Cream
Deodorant Soaps Shampoos
Washing Bar Soaps Soap for other specific uses.
Another method of classification is to name the soaps on
the basis of finishing operations, such as
Form-made soaps
Milled Toilet Soaps
Floating bar Soaps
Milled Flakes
Unmilled Flakes
Washing Powdered Soaps
Soap beads
The classes are not all distinctly separable. There are
number of overlappings.
WASHING BAR/CAKE SOAP FROM NEAT SOAP
(FORM MADE SOAPS)
The neat soap is transferred into a stem jacketed crutcher
where various quantities of additives such as builders like
sodaash, sodium silicate and fillers, perfumes, stablizer,
colouring matters are added and well mixed.
The crutcher is a horizontal or vertical mixer. The mass
is mixed by paddles or worm type agitators suitable for
agitating dough like masses. If floating bar soap is to be
made, air can be beated into the mass by adjusting the speed
of the agitator to reduce its bulk density so that the finished
bar soap will float on water. The crutchers are built according
to needed capacity. It may be upto 5000 kg of capacity. For
making floating bar soap, votator is also used to incorporate
air into the soap mass. A votator is a mechanical device which
is also a mixer with paddle type agitator which beats air into
the pasty mass thereby, reducing the density of soap.
The crutched homogeneous soap mass which is kept at
a temperature of 65°C by supplying steam into outlet jacket
is then forced out through bottom outlet of crutcher into the
frames.
The frames are rectangular in shape, bottomless structures
made by four removable sides iron plates. In a big unit, the
capacity of a single frame is about 500 kg. The frames are
placed on platforms which is mounted on wheels to facilitate
pushing by hands the frames with soap to cooling room where
they are kept for 3 to 6 days under normal pressure and
temperature until soap becomes hard enough to cut into slabs
by slabbing machine.
The smaller units who make soap by semi-boiling/coldmade
process generally use frames made of wooden sides
having much smaller capacity and which are moved by simple
hand lifting. The height of the sides of frames are selected
according to the thickness of final soap bar.
The slabbing machine is a simple device holding horizontal
evenly placed wires. After removing the sides of the frame
these wires are forced through it to cut into slabs. The slabs
are then placed on table and cut into cakes. The blocks from
small wooden frames are directly placed on the table having
a sliding part of its top and fixed arrangement for cutting
by wire into cakes. A slabbing and cutting machine (Fig 1)
has the arrangement of pushing the block through vertical
wire and moving the slabs through another set of vertical wire
to cut into cakes.
The smaller units uses stamping system to be manually
operated. The main part consists of a hollow cast iron block,
the inside of which is of such dimension as to fit in soap
cake of desired size. A top cover has the required engravings
to be imprinted on cakes. The separate bottom plate also has
some intended engravings. Both the top and bottom covers
move freely inside the hollow block. For stamping, the soap
cake is put inside the mould having bottom plate in position.
Then, the cake is pressed by top cover. After pressing is over,
the bottom plate pushes out the stamped cake out of the
mould by its own mechnical arrangement. The entire pressing
and pushing out operations are done by pressing a pedal kept
under the table on which all other parts of stamping (discussed)
system are mechanically arranged.
JET SAPONIFICATION PROCESS
In this process, the saponification kettle is a two
compartment vessel. In the first compartment, proportional
amount of fat and caustic soda solution containing salt are
atomized and sprayed with the help of three way jet of steam.
Then the sprayed feed mixture becomes emulsified, the
condition necessary to start saponification. In the same
compartment, saponification takes place and proceeds near
to completion without addition of extra steam or agitation.
A holding time determined by the height of weir is allowed
in the first chamber. Then, swelled contents spill over into
the second compartment where live steam may be added to
complete saponification. As mentioned before, saponification
is nearly completed by exothermic heat of reaction.
GLYCERINE RECOVERY
Industries making soap by full-boiling process have
glycerine recovery section. Though production details of
glycerine does not fall under the purview of soap manufacture,
a general description of the recovery process of glycerine from
spont soap lyes is included here.
Spent lye contains about 3 to 8 percent glycerine, 5 to
15 percent sodium chloride, and small quantities of caustic
soda, soap, fatty acids and other organic impurities.
The hot lye is first cooled and allowed to settle. Much
of the soap is removed by settling. Then, the lye is treated
with hydrochloric acid to reduce alkalinity and also with ferric
chloride solution of such an amount (determined by separate
test) to give maximum precipitation of hydroxyl ions and of
soap. It is found that about 2.5 kg. of ferric chloride is needed
per 1000 kg of lye. Low grade lye needs additional 0.5 kg.
of aluminum sulphate per 1000 kg. of lye for complete removal.
A little quantity of hydrochloric acid is added to make the
lye just acidic. After thorough agitation, the lye is filter pressed
in warm condition. The filtrate is again treated with caustic
soda to make the lye just alkaline. It is filtered again. This
lye contains about 4 to 10 percent glycerine and 11 to 18
percent salt.
WASHING SOAP USING SOAP STOCK AS MAIN FATTY
RAW MATERIAL
The foots or soap stock is obtained as byproduct in the
alkali refining of vegetable oils, mainly cottonseed oil. Other
oil foots may be available depending upon refining units.
Sodium salts of fatty acids admixed with unreacted oil and
water and other impurities are its constituents. It is coloured
dark, semi-solid muddy consistency.
Its composition are generally given as
Perfume – 0.05
Water – 40-50 percent
Fatty matter – 35-60 percent
Rest – other impurities
Before finalising the charge of soap stock for making soap,
it is necessary to determine the total fatty acids (T.F.A.) of
soap stock or acidulated soap stock. The method of
determination of T.F.A. is described below.
A measured quantity of sample is saponified in an alcoholic
solution using excess sodium hydroxide. The product of
reaction is then dried and re-dissolved in water. The aqueous
solution is then acidified with dilute hydrochloric acid to free
the fatty acids which are then extracted with petroleum ether.
The solvent is removed by distillation. The residue, the fatty
acids are dried at 100°C and weighed to get total quantity
T.F.A.
TOILET SOAP
Toilet soap should be well saponified product possibly
containing no free alkali. It is difficult to adjust the proportions
of alkali and fats to obtain complete saponification. The highly
reacted soap produced by full-boiled process contains upto
0.1 percent free alkali and that produced by cold-made/semiboiled
processes may contain upto 0.3 percent free alkali.
The soap should not cause any irritation to the skin. It
should be smooth.
The soap should remain dry through absorbing moisture
at the surface layer thereby, helping the hard soap solubilized
desirably. This is done by crystal modification of the soap
crystals. Soap with phase predominating serves the above
purpose. Soap which is allowed to solidify rapidly is harder
than the soap cooled more slowly.
The soap are best made from coconut oil and tallow.
Coconut oil which may be partly substituted by other oils
of lauric acid group (palm kernel oil, babassunut oil) is used
to the extent of upto 30 percent in general. In some
formulations, coconut oil is used upto 50 percent. In case
of lower grade soaps, the remainder tallow may be substituted
by light coloured palm oil. Other oils like groundnut oil, castor
oil, olive oil, lard etc., in their purified and bleached form
may be used to some extent. Some toilet soaps contain free
fatty acids upto the extent of 7 percent.
The moisture content of soaps vary from 12 to 35 percent
depending upon the method of production. Semi-boiled/coldmade
process soaps contain all amount of glycerol separated
during saponification, where as glycerol content of full-boiled
soaps is not greater than 0.75 percent.
Toilet soap does not contain any builders. It contains only
pure soap and water. Some soaps may contain less than 1
percent titanium dioxide or zinc oxide as white pigments.
Unmilled toilet soaps usually contain 0.5 to 2 percent salt
(for hardening) sodium hydrosulphite, sodium thiosulphate
as preservatives.
Milling process helps to produce soaps with bright polished
surface finish with intimately perfumed and coloured.
Although most of the toilet soaps are milled product and
made from full-boiled soap-base, a good deal of these soaps
are made by small manufacturers following semi-boiled process
and form-made finish. Unmilled toilet soaps are also made
in big industries.
Milled Finished Soap
The saponified mass from the mixing pan at 60-65°C as
mentioned, is transformed into thin sheet by roller to make
ribbons which are dried by conveying through drier, then
chips are milled, then mixed with perfumes and stabilizer in
amalgamator, then through plodder and extruded in
continuous bar which is cut into cakes, stamped, wrapped
and packed (all this operations are described previously as
milling process or in making milled toilet soap from neat
soap).
Mottled Soap
The coloured streaks, for example, blue in a mottled soap
are interspread with a white, cream or any other light colour
are due to the presence of a small amount (25 percent) or
as desired, of ultramarine blue added to the soap kettle before
the soap is finished. Adding excess alkali, the niger is kept
unseparated from the soap and as such poured in the frames
in the form of two distinct but intermingled phases, only one
of which contains colouring matter. The final appearance of
the soap is developed by very slow cooling in the frames.
The mottled soaps are also prepared by hand mixing
carefully of a coloured and uncoloured base.
Mottled Soap
The coloured streaks, for example, blue in a mottled soap
are interspread with a white, cream or any other light colour
are due to the presence of a small amount (25 percent) or
as desired, of ultramarine blue added to the soap kettle before
the soap is finished. Adding excess alkali, the niger is kept
unseparated from the soap and as such poured in the frames
in the form of two distinct but intermingled phases, only one
of which contains colouring matter. The final appearance of
the soap is developed by very slow cooling in the frames.
The mottled soaps are also prepared by hand mixing
carefully of a coloured and uncoloured base.
TECHNOLOGY OF SOAP MANUFACTURING
Techniques
The technique of soapmaking varies with production
needs. In the cottage sector, oils and liquid caustic are boiled
together in a Kadahi (a hemispherical vessel) heated by coal
or wood. Glycerol is retained in the soap.
On a slightly larger scale, oils and the caustic soda are
boiled in kettles of 15 to 25 tonnes capacity. Glycerol is
discarded along with the lye or sold to glycerine manufacturers
after concentration. On a still larger scale, open steam boiling
in larger kettles of 60 tonnes capacity or more is carried out
followed by glycerol recovery.
If the output rate is of the order of 100 tonnes or more
per day, continuous soap making processess are followed
and glycerol is recovered. Instead of oils, a blend of fatty
acids may also be used for saponification.
Saponification Methods and Equipment in the
Organized Sector Traditional method
The traditional method followed by the organized sector
for making soap is to boil together a running steam of oil
and caustic soda solution in a soap kettle fitted with open
steam coils. The temperature is usually in the range of 40-
450C, while caustic soda solution is used at ordinary
temperature. As the oil and the liquid caustic are run in,
the steam is allowed to flow. Saponification is slow in the
beginning, particularly if the oil has low FFA content (5-6%),
but the soap formed initially acts as a medium for further
saponification to take place more rapidly. The reaction slows
down as the cocentration of the oil decreases.
Equipment for batch soapmaking
The conventional batch equipments used for making soap
comprise kettles or pans that are either square or circular
in cross section. At the bottom, perforated steam coils are
fitted inside. Capacities range from 50 to 100 tonnes of neat
soap in large-scale operations, and from 6 to 10 tonnes in
small scale ones. The vessels are provided with two outlets,
one at the bottom and another a short distance from the
bottom on the side. The outlet at the bottom is used for the
withdrawal of lye and nigre, and the outlet on the side for
neat soap. A skimmer pipe, operated by a chain on a winch
is fitted to the vessel to facilitate withdrawal of soap from
any level. Overhead takes and piping are provided for the
storage of oil blends, caustic soda solution, brine and water.
Equipment for batch soapmaking
The conventional batch equipments used for making soap
comprise kettles or pans that are either square or circular
in cross section. At the bottom, perforated steam coils are
fitted inside. Capacities range from 50 to 100 tonnes of neat
soap in large-scale operations, and from 6 to 10 tonnes in
small scale ones. The vessels are provided with two outlets,
one at the bottom and another a short distance from the
bottom on the side. The outlet at the bottom is used for the
withdrawal of lye and nigre, and the outlet on the side for
neat soap. A skimmer pipe, operated by a chain on a winch
is fitted to the vessel to facilitate withdrawal of soap from
any level. Overhead takes and piping are provided for the
storage of oil blends, caustic soda solution, brine and water.
Equipment for batch soapmaking
The conventional batch equipments used for making soap
comprise kettles or pans that are either square or circular
in cross section. At the bottom, perforated steam coils are
fitted inside. Capacities range from 50 to 100 tonnes of neat
soap in large-scale operations, and from 6 to 10 tonnes in
small scale ones. The vessels are provided with two outlets,
one at the bottom and another a short distance from the
bottom on the side. The outlet at the bottom is used for the
withdrawal of lye and nigre, and the outlet on the side for
neat soap. A skimmer pipe, operated by a chain on a winch
is fitted to the vessel to facilitate withdrawal of soap from
any level. Overhead takes and piping are provided for the
storage of oil blends, caustic soda solution, brine and water.
MANAGEMENT OF SOAP FACTORIES
TECHNICAL EFFICIENCY
Introduction
Technical efficiency is a yard-stick for measuring the
efficiency of all factory operations in terms of certain important
parameters. These are yields, wastages, give away, material
usage, services usage, machine output, and productivity. By
taking these factors into consideration it is possible to
calculate the financial implications of factory inefficiencies
and take steps to overcome them. The yard sticks for
measuring technical efficiencies are common for soaps,
detergent powders and detergent cakes.
Yield
Yield refers to the ratio of output of the finished products,
to the input of the raw material calculated on a common
base. Yields are normally worked out every month on the
basis of stock taking. Stock taking days are chosen well in
advance so that adequate preparations can be made. In the
absence of such preparations stock taking can prove unreliable
especially in large establishments, and errors can creep in
leading to distortion of figures.
Preparations include, minimising the stock in process,
withdrawing lyes from soap pans for estimating the stock of
soap, eliminating leaks in pipes and tanks, checking
calibrations and emptying tanks.
Once the yields are known, they should be compared
against targets and deviations, if any, should be investigated
and remedial measures should be taken. Ideally, yields should
be 100% but there are always losses in the process that
reduce the figure to less than 100%.
Glycerol yield
Glycerine yield is a ratio of the output to input. The
output is obtained by analysing the products in process and
finished products during the month end stock taking. The
input in obtained from the oils used in soap-making. Glycerine
losses occur from:
(a) Bleaching of oils
(b) Glycerine left in soap
(c) Glycerine lye discarded from scrap soap
(d) Muddy lye discarded
(e) Sludge produced during lye treatment
(f) Evaporation of lye
Glycerine lost during bleaching depends on the bleaching
earth usage and the nature of chemical treatment for colour
reduction. Some glycerine is always left in the soap depending
on the techniques used for washing soap, to free it from
glycerol after saponification of the oils. When scrap soap is
re-processed, the residual glycerol is lost. Any glycerol lye
that cannot be used, e.g. dirty lye, is discarded and glycerol
is lost along with it. Similarly, during the first and second
lye treatment, the sludge generated in the process is discarded
and some glycerine loss also take place. Finally, during
evaporation, some glycerine is lost through entertainment
into the vacuum system. Typical figures for losses under the
various categories are:
The actual yield should thus, be 100–6.5 = 93.5% for
crude glycerine. This is a good starting point and can be
improved with tighter controls.
The yield for refined glycerine starting with crude glycerine
should be 96% for a start allowing for 4% loss during
distillation via the vacuum system, via residues from
distillation still discarded and due to polymerisation during
distillation. The yield applies to the Scott-Unilever distillation
still already mentioned.
A reliable method to check losses is to prepare the process
specification and process control procedures and adhere
strictly to the laid down procedures, backed up by laboratory
analysis. All operations should be performed in a manner
so as to maximise yields and eliminate undue losses.
Over/under usage of materials
The over/under usage of chemicals used in soaps and
detergent powders and cakes is arrived, at from the theoretical
usage on the basis of the product specification and the actual
consumption. A variation of up to 2% is permissible and
wider variations call for investigations. High value items, such
as perfumes, fluorescer, polyphosphates etc. require closer
control.
In the case of packaging materials, the wastage depends
upon a number of factors, e.g. if the wrapping of soap is
done manually there is practically no wastage whereas, if
done on the machine a wastage factor is involved. The extent
of wastage depends on the complexity of the packaging
operation and the quality of the wrappers.
For wrappers, laminates and cartons, the target over usage
is in the range of 2–6% and for outer boxes, up to 1%.
For engineering materials, the main yardstick apart from
the usual controls on receipts and issues, is the total amount
spent on maintenance. One way of expressing this is to
calculate the ratio of repairs to the replacement cost of plant
and machinery. A reasonable figure is 5% on an average.
One way to control over/under usage of items is to operate
on low stocks, requisition materials for short periods, and
to ensure that materials are used by weight. Spot checks
should also be made to ascertain the contents of bags in
which the materials are received. Weekly departmental stock
taking of the various raw materials would help in controlling
usage.
QUALITY ASSURANCE
Introduction
Quality assurance (QA) signifies that a product that is
well defined in all its attributes and is superior to competitive
products reaches the consumer in the same form in which
it was originally produced. As this may not always be true,
efforts are made to ensure that the risk of sub-standard
product getting to the point of sale is at an agreed quantifiable
level. The QA programme provides safeguards at each stage
during the production through distribution until the product
reaches the consumer.
Conventional Approach to Quality
In a factory, the number of units produced is the prime
consideration and usually all efforts are directed towards
quantity rather than quality. The factory personnel are
generally ill informed about the fate of the product after it
leaves the factory. Although quality of the product can be
controlled, it has been seen that this does not prevent the
production and marketing of sub-standard products.
Deferioration may occur by the time the consumer purchases
it.
Recommended Approach to Quality
In order to safeguard the product quality and the
consumer’s interests, the following steps are proposed:
1. Each company must clearly define its policy on quality.
2. There should be two quality functions within a
company. One for manufacturing quality and the
other—a broader responsibility across the company
reporting to the board. The latter function would cover
analysis based on shop pick-up of Company and
competitor brands.
3. Production departments must assume full
responsibility for quality so that the QC department
may be monitoring key data.
4. For each brand, the quality objectives and the key
variables should be defined for control during the
manufacturing process.
PROJECT PROFILES
Project Estimation & its Reliability
Preparation of project cost estimates is a complex task.
Reliability of the estimate depends not only on the accuracy
of the date considered, but on a number of other influencing
factors like:
• Scope, definitions of terms used & cost elements.
• Accuracy of data used.
• Technique of estimation & status of over all knowledge.
• Relevance of cost data factors under the situation.
• Source of relevant data & data-bank available.
• Basis of choosing the basic figures & demand of used
technology.
• Estimator’s skill, experience & visualising/decision
making capability.
• Whether or not, a check list has been prepared for
cross-checking the accuracy of the budgeted estimates.
Except some unpredictable & normally uncontrollable
factors, like currency fluctuations, inflation, change in
government policies leading to varying project implementation
and monitoring, other visibly understandable factors like
existing, market conditions & general trends should be
judiciously considered besides well judged data available from
the data-bank.
OTHER FIXED ASSETS
The term “Other Fixed Assets’, used in the computation
of Project cost, includes:
(I) Office equipment & Furnitures
(II) Cost of electrifications, electric systems, and circuits,
upto various use point of the plant, but not the power
transformer of DC, Sets etc.,
(III) Technical Know-How costs/free payable,
(IV) Preliminary expenses, etc. SSI registration, DGTD
registration/L.I./L.L. Obtaining expenses, Fees for
Foreign collaboration searching & procedurally
establishing, processing feed for MOU approval by SIA,
Department of industries, application & processing fees
for grant of import permissions, to import capital goods,
components, raw materials, etc. for actual
consumption, RBI clearance, etc.
(V) Pre-operative expenses include the over all supervisory
& material & labour costs, occurring during irrection
& commissioning of plant & machinery which was
done by the team of plant suppliers. For such service
they change a reasonable sum, in addition to the cost
of plant & machineries + Net expense occurred in
Trial-run operation.
(VI) Personnal training (if necessary)
(VII) Contingencies, foundation works etc.
INCENTIVES
Incentives include all those monetary benefits which are
passed on to the entrepreneurs/firms/industrial units, in terms
of cash paid or exemptions from paying certain taxes/duties
under specific industrial laws, as a result of certain
extraordinary conditions declared through press notes or
amendments in the prevailing rule or by adding extra clause
or by omitting certain conditions from the fundamental law.
Exemptions from paying sales taxes upto a certain period,
exemptions from paying excise duties (ED) on purchase of
excisable items for industrial consumption upto a certain
amount or non-payment of ED on the industrial/trading units
sales upto certain turnover limits etc., are the examples of
direct incentives automatically coming to the unit concerned.
Certain other incentives on the lines of exemption are
achieved by the firm by declaring itself covered under certain
provisions of the Government like MODVAT scheme, or an
ancillary unit, etc.
Various incentives relating to export promotion and on
imports of capital goods, raw-materials, components & spares,
that go into export productions, are quite prominent incentives
which have been separately dealt elsewhere in this book.
TURN OVER (P.A.)
In the brief financial summary of projects dealt in this
book, the term ‘Turn over’ means all the earnings of the firm
in a specified year by way of (i) marketing of its products,
(ii) recovery from sales or re-use or re-cycling of the industrial
wastes, (iii) sales of by-products, (iv) receipts from sale of its
assets or unaccounted stock, etc.
However, turn over has been anticipated on the assumption
that the plant operates at 100% capacity utilization and the
market rates prevailing today will remain unchanged.
DEPRECIATIONS
The rates of depreciations, on various fixed assets, allowed
by the government for deductions by the firm are as under:
(i) On non-industrial buildings @ 5.0% p.a.
(ii) On industrial buildings @ 10% p.a.
(iii) On plant & machineries & accessories employed in
production of the products, their testings, testings of
raw materials, material handling, control devices,
supporting machines e.g. toolroom, etc. @ 25% p.a.
(iv) Energy saving/regulating/generating equipments @
50% p.a.
(v) On office equipments & furnitures @10% p.a.
Note: Pollution treatment equipments have throughout
the book been considered to be depreciating at the same rate
as the main plant & machinery.
INTEREST
Interest on the project cost has been considered @20%
p.a. (average in case of all the projects considered in this
book.
This may not be the exact position in a variety of cases.
But, what so ever, this is only an estimation & not the exact
case. Since, so many other assumptions have also appeared
in the process of project estimation, hence it is felt that
whatever little difference will surface in the real project
execution & its commercial operation, will cancel out each
other, and the standard costing will not be affected.
Edge Runners
The edge runners are distinct from crushing machines
which grind by a compressive force. This machine uses also,
a shearing force in addition to crushing. This type of mill has
been utilized for many years and consists of one or more
heavy rolls, made of granite or steel, fixed on a horizontal
shaft and caused to rotate over a bed or track, also of steel
or granite. Since the outside of the roll travels over a greater
distance than the inside, there is a constant slip of shear.
The charge continually moved by scrappers into the path of
the rolls, and when grinding is complete, it is discharged
through a door in the base of the mill.
