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2 Contents of the Presentation 1. Company Overview 2. Action Plan on CP and EE 3. Implementation of Action Plans a. Fuel Reduction b. FW Intake Reduction c. Power Reduction

3 Mill Overview Company : Rural Industrial Corp. Established : 1982 Business : Paper Manufacturing Address : Sta. Cruz, Sta. Maria, Bulacan Product Grade : Newsprint, Ground Wood, Kraft Paper, White Bond, & White Wove Memeo Paper Machines : 2 Cylinder Mould & 1 Fourdrinier Total Capacity : 40 MTAD/Day No. of Workers : 105 ( 46 Regular ) No. of Shifts : 2 Ownership : Private Corp.

4 Mill Viewing

5 MILL VIEWING

6 A. Fuel Reduction Action Plans on Cp & EE Problem Areas 1.Boiler Feed water Tank of PM-1/2 2. PM-3 3 Sheet Drying Problem Statement Both paper Machine 1&2 are discharging high volume of steam which is carry over with the Condensate from the Yankee Dryer. There is much pressure with the seam that it reaches the roofing contributing to its fast rusting. A clear wastage of Fuel and Energy. Paper products of PM-3 3 especially the light grades are overdried at 4% Moisture Content which should be dried at 6-7%. 6 Too much drying is a wastage of Fuel and Energy. Action Steps 1. Check/replace Condensate Steam Trap to prevent steam carryover. 2. If problem still exist after correcting the steam trap, a Heat Exchanger is needed to recover heat from steam in heating Feed Water to Boiler. 1. Lower down boiler pressure from the usual 5 bar to 4 bar. 2. Invest on hand held Moisture tester for efficient control of MC on paper products. 3. Speed up machine on lightier grades. Time Frame 1 Mo. 3 Mo.

7 B. Power Reduction 1. Paper Machine 1&2 Fresh Water Pump Cap. Is 1800 lpm using a 15 HP motor but the machine needs only 300 lpm (max). This pump operates 24 hrs. a day and is therefore wasting more power. 1. Size up pump using 5 HP Motor. 2. Size up pipings 3 Mo. 2. Paper Machine-3 Fresh Water Pump Cap. Is 1800 lpm using a 15 HP motor but the machine needs only 300 lpm (max). This pump operates 24 hrs. a day and is therefore wasting more power. 1. Size up pump using 5 HP Motor. 2. Size up piping s 3 Mo. 3. PM-1/2 Stock Prep. 4 Pulpers w/ 100 HP Motor Drive each optg. 24 hrs. to process 22 MTAD waste paper/paper board. Size up Pulper requirement w/ 2 units capable of processing 30 MT a day using 100 HP Motor Drive. 1 Yr. 4. Deep Well Pump FW Deep Well Pump operates at longer time due to high FW usage of the machines. Push through w/ item C on FW Intake reduction 3 Mo.

8 C. Fresh Water Intake Reduction 1. Paper Machine ½ Target FW is lpm but actual varies up to 300 lpm with less accuracy in the volume determination. This results to upsets in the recycling and balancing of white water to achieve Zero Discharge. 1. Provide Flow meter 2. Replace FW in Trim Cutters with white water using pump. 3. Reduce shower nozzles by 50% 4. Improve Felt Cleaning by vacuum cleaning 3 Mo. 2. Paper Machine 3 Fresh Water usage not accurate 1. Provide Flow meter 2. Replace FW in HD cleaner using a pump 3. Replace vacuum pump seal water with clarified water. 3 Mo.

9 First Update On CP & EE A. On the 11 th of August, two days after the Workshop, 5 S 5 S and Orientation about Green Productivity was launce to half of our work force ( regular & casual ). The other half was completed on the 18 th and since then, newly hired casuals were required to undergo same orientation in addition ion to Safety. Every Saturday, we had our crew meeting and issues regarding Clean Production and Energy Efficiency were added as part of the Production s s Major Concerns. B. Implementation of Action Plan ( Item-A, Fuel Usage Reduction ) Last Aug. 13, the problem of high Steam Emission at the Feed Water Tank of PM-1/2 Boiler was discussed with the Day Shift Supervisor and immediately we check the valve settings of the condensate line. We found out that the By-Pass Line of the Steam Trap was fully opened at both machines. Operator s s reason of opening the by-pass was that Drying Problem is encountered if condensate evacuation passes the Steam Trap. At this condition Data were gathered and then the by-pass valves were closed allowing condensate to pass the Steam Trap. At this second condition Data of Fuel Consumption were again gathered for comparison of the baseline.

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12 Dryer performance on the other hand was also monitored and after a few days of operation with by-pass valve close, drying problem was truly encountered which implies that there is a restriction of flow across the Steam Trap and with this observation, bypass was allowed to be open o but operator s s has to ensure that only the condensate and not steam has to be evacuated to the Feed Water Tank. Replacement of the Condensate lines( i.e. ¾ D to 1 D 1 D pipe ) and steam trap is scheduled to be done on the coming December shut down. Fuel Usage Reduction as planned was therefore completed ed at target time frame with 13% Savings in the Total Fuel Cost of PM-1/2 Machine. Tabulated Data on Fuel Consumption Date Time Fuel Consumed Condition of Steam Trap Aug.14 10:13 AM 10:33 AM 11:03 AM Total = - 4 7/8 4 1/8 9 /Hr By-Pass Full Open 12:41 PM 1:11 PM 1:41 PM Total = 2:10 PM 2:40 PM 3:10 PM Total = - 4 ¼ 4 1/8 8 7/8-3 ¾ 4 1/8 7 7/8 Close By-Pass Valve 3:51 PM 4:21 PM 4:51 PM Total = /8 8 3/8

13 Date Time Fuel Consumption Condition of Steam Trap Aug.15 10:23 AM 10:53 AM 11:23 AM Total = - 4 ¼ 3 ¾ 8 /Hr Close By-Pass Valve 1:00 pm 1:30 pm 2:00 PM Total = ¼ 8 ¼ 3:38 PM 4:08 PM 4:38 PM Total = - 3 7/8 3 7/8 7 ¾ Ave. Fuel Full Openning= 7PM-8PM 10PM-11PM 11PM 1AM-2 2 AM 8.85 in./hr 8 7 ½ 8 Ave. Fuel Close CyPass = 8.0 in/hr

14 Fuel Usage Computation Base Data ( 100% By Pass Valve Open ): SFO Price = I in Height of Fuel in Service Tank = Ave. Fuel Usage = Ave Daily Fuel Usage = Ave. Monthly Fuel Usage ( FU1 ) = Php Lit in/hr or Lit/Hr Lit. 122, Lit After Adjustments Done : Ave. Fuel Usage = Ave. Daily Fuel Usage = Ave. Monthly Fuel Usage ( FU2 ) = Projected Monthly Fuel Usage Reduction ( FU1-FU2) FU2) = % Fuel Reduction ( FU1-FU2)/FU1 FU2)/FU1 x 100 = Projected Monthly Savings in Fuel Reduction = ( x 24 ) 8 in/hr or Lit/Hr Lit. 110, Lit. 11, Lit. 9.6 Php.. 281,715.84

15 Second Update on CP & EE Months of September and October, the activities done was focus on o Item C of the Action Plan which is Fresh Water Intake Reduction. The objective is to have an accurate figures of the Fresh Water Intake and to lower the usage down to 200 Lpm or a Daily consumption of cu.m.. in order to have a better control of the white water recycling process for Zero Discharge Target. The initial FW Usage based on the Deep Well Pump capacity and operating time average at 850 cu.m.. per day but upon installation of the Flow Meters, the accurate figure was only averaging at 740 cu.m.. per day.. Since the installation of the Flow Meters, suggested steps to reduce Fresh Water were gradually implemented as shown below: Action Steps Remarks 1.Purcahse and installation of 2 Units Flow Meter (1 Unit for PM-1/2 and 1 For PM-3 3 ) Completed Sept Recover Vac.. Water of PM-2 2 ( White Water ) using 2 HP Pump replacing FW in Trim Completed Sept.-10 Cutters of PM-1 3.Replaced FW at PM-3 3 High Density Cleaners w/ Clarified Water via 2 HP Pump Completed Sept Reduction of PM-1/2 Shower Nozzles by 50% ( 4 Units ) Complete Oct Replaced FW Sealing Water of 2 Units Vac.. PM-3 3 Completed Oct & 22 At present the Daily FW Intake with 3 Machines operating at an average a of 550 cu.m./day./day or a remarkable Of 190 cu.m.. /day ( =190 ) which is approx. 26% FW Usage Reduction. Reducing farther to the target Of 300 cu.m/day is still on going upon implementation of Vacuum Cleaning for Felt.

16 Savings in Reduction of Fresh Water Intake Computations: Base Data : Initial FW Usage = Value of FW = Cost of 2 Units Flow Meter = Data After Implementation of FW Reduction Plan: FW Usage = Reduction in FW Usage ( ) = Cost savings in FW Reduction ( 190 x 0.5 ) = Power Savings in the Reduction of FW 740 cu.m./day./day Php.. 0.5/cu.m. Php.. 45, cu.m/day 190 cu.m/day Php /day or 2,850/Mo. Computations : Base Data : Deep Well Pump Motor rating = Optg.. Time to Pump 740 cu.m/day = Power Usage ( 37.5 Kw x 8.5 hrs. ) = Price of Power = Initial Power Cost/Day ( x 4.65 ) = 50 HP or 37.5 KW 8.5 Hrs Kw-hr Php /Kw-Hr Php Data After Implementation of Reduction Plan : Optg.. Time to Pump 550 cu.m./day./day = Power Usage ( 37.5 x 2.2 Hrs. ) = Present Power Cost/day = Power Cost Reduction/Day ( ) = 2.2 Hrs Kw-hr/Day Php Php or

17 Total Savings in the Reduction of FW Intake Volume Computations : Power Savings + Savings in FW Vol. ( 32, ,850) = Php.. 35,807.25/Mo. Other Cost of Installation : Fab.. Of Tanks ( 2 Units ) = Nylon Hose = Labor Cost = Total Cost of Installation = Php Php Php Php R.O.I ( 45, )/ 35, = 1.45 Mo.