PRODUCTION AND OPERATION MANAGEMENT

Subject Name
Production and operation management

Topic/Working
We were assigned a task to identify the process of product its problems and suggest solutions for any company or group of companies

Submitted To
Submitted By Group Detail

Prof. Asad Butt

Ghulam Dastgeer and group fellows

Ghulam Dastgeer Imtiaz Noshad Mubashar Sarwar

(MCE12150) (MCE12127) (MCE12106)

Mubeen abdul Rehman (MCE12151) Sehrish Qaiser Sumara Ibrahim Nauman Ahmed (MCE12138) (MCE12160) (BBA7138)

FINAL TERM PROJECT

SUPERIOR GROUP OF COLLEGES

Table of Contents
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Sr.# 1 2 3 4 5 5.1 5.2 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7 7 8 9 10 Organogram Acknowledgements

Topic

Page # 3 4 5 6 7 7 9 12 14 14 14 14 14 14 14 15 16 17 22

Executive summary (1 page summary) Introduction (maximum two pages) Situation analysis PESTLE analysis SWOT analysis Value Chain Firm infrastructure Human Resource Management Technological development Procurement Inbound Logistics Operations Outbound Logistic Analysis of various Marketing Activities Compitetors Process and Problems Conclusion and Recomendations

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ORGANOGRAM

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ACKNOWLEDGEMENT
In the name of Allah the most beneficial and merciful who enable us to reach the Zenith of educational level of our life through his mercy we are thankful to almighty Allah for his countless blessings. He is the one who gave us that much perseverance to complete of our Master in commerce Degree. We gratefully acknowledge to all the professor and teacher who offered valuable guidance and share their intangible assets, their knowledge and experiences, with us during our studies at institute Superior Group of Colleges, Lahore. We wish to express our deep thanks to our M.COM Final Project advisor Mr. Asad Butt for his dynamic supervision and guidance vast experience and the combination of personal and private way of working contributed to the development and refinement of this project. His influential ideas and vast experience of financial corporate sectors as well as the way of encouraging and appreciating encourage me to complete this report successfully. Without his sincere cooperation the work might not have been a success. Thanks are due to all person of WOM especially Mr. Babar Munir (Sale coordinate Officer) and Mr. Muhammad Abid (Sale Distribution Executive) who gave us their time and energy who help us gathering vital information who accomplishes this task successfully. We are also thankful to all of our friends who helped us in the completion of our final project. The friends include Faisal Iqbal, Umer Sharif Butt, Mutahir Bilial. Finally, we thank to our family for their love and cooperation in completing our studies

Ghulam Dastgeer Imtiaz Noshad Mubeen abdul Rehman Nauman Ahmed Mubasher Sarwer Sumera Ibrahim Sehrish Qaisar

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EXECUTIVE SUMMERY
We were assigned a task to choose any company local or multination (manufacturing or services) then identify their processes, problems, and then suggest solutions for one product. For this purpose we selected seasons the season further have two businesses one is known as walli oil mills (WOM) in which they deal in Canola Oil, Sunflower Oil, Corn Oil and Punjab Ghee and the other is season menu in which they deal ready to eat items our projects working is based on (WOM) for this purpose we selected the product name as Season Canola Oil we visited the head office of (WOM) situated in 171,Shadman-II, Lahore, Punjab, Pakistan where we meet with Mr. Babar Munir (Sale coordinate Officer) we have good experience to meet with him he is very honest and good looking personality he explained and elaborate all our queries in very good way after having meeting with him we started our working during our working we have explained the introduction of the company then situation analysis is done which includes PESTLE and SWOT analysis then we have discussed the process of the canola oil in which we discussed the followings Supplier network Input process Production process Output Distribution Customer network And then we discussed the problems in the process and further provided some suitable solutions for the improvement and at the end we write down the conclusion. In the whole project we put our efforts together as a group to fulfill the requirements our beloved teacher Mr. Asad Butt we have completed the project to our level best and hope so that our teacher will feel proud on our working which we have presented to him

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Introduction
Wali Oil Mills Limited (WOM) was incorporated as a private limited company on February 02, 1990 and converted into public limited company on April 14, 1991. It was the first company to introduce Canola oil in Pakistan consumers, and recognized the importance of local seed cultivation, which helps in quality control and save foreign exchange spent on imported oil. WOM has developed new areas in Sheikhupura, pinawal and Mandi Bahauddin, comprising 10,000 acres for the cultivation of sunflower. WOM supplied farmers with high quality seeds, obtained from world-renowned companies like ICI and Cargil. WOM not only produces Seasons Canola, quality cooking oil, but is also known for the excellence of its other products like Punjab Atta NO.1 and National Feeds. The Pakistan standard Institution (PSI) has recognized it quality control process management. The search for better and healthier diets has now become a matter of primary concern. Season Canola oil is so pure that even upon refrigeration it does not become solidify completely adores itself and enhances the taste of any food cooked in it. It also had the lowest percentage of cholesterol forming fats that results in preventing the formation of cholesterol in blood vessels, and reduces cholesterol. The consumers of Canola oil had significantly fewer heart attacks and cardiac deaths. Another research results that the regular use of canola oil may reduce the risk of cancer. The human body has natural defenses against most cancers but it is important to fortify these defenses by eating right diet, a diet rich in Canola oil. Seasons Canola oil has the best nutritional profile, low in saturated fat, and a source of omega -3 and 6 fatty acids. The omega refers to chemical structure of the fatty acid. Lanoline acid is knows as omega-6 and Alpha-lanoline as omega-3. Seasons Canola also contains Vitamin E, which is an essential nutrient required in a healthy diet. Wali Oil Mills is cognizant of the fact that along with the physical fitness, a healthy, educated society is imperative for the well-being of the people, led by this spirit of social welfare; Wali Oil Mills has established a school spread over an area of 30 kanals adjacent to its plant, where more than 600 children of people living in the vicinity receive quality education. WOM has invested 48 Million rupees initially and issued 48,000 shares of Rs. 10 aach to generate public through stock exchange. There are 152 permanent employees working for Wali Oil Mills Ltd. Other than these packaging departments and loading unloading work is on contract basis.

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The main raw material Rapeseed is importing from Canada and Australia. However the local purchase of Sunflower is made through farmers. The management of the company consists of Board of Directors as the nature of the company is Public limited. It is listed in Lahore Stock Exchange (G) limited. It is a subsidiary of National Group of Industries

Situational Analysis
PEST / PESTLE Analysis
Stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro environmental factors used in the environmental scanning component of strategic management. Some analysts added Legal and rearranged the mnemonic to SLEPT; inserting Environmental factors expanded it to PESTEL or PESTLE, which is popular in the UK. The model has recently been further extended to STEEPLE and STEEPLED, adding education and demographic factors. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The growing importance of environmental or ecological factors in the first decade of the 21st century have given rise to green business and encouraged widespread use of an updated version of the PEST framework. STEER analysis systematically considers Sociocultural, Technological, Economic, Ecological, and Regulatory factors.

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Political
Factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads) Furthermore, governments have great influence on the health, education, and infrastructure of a nation.

Economic
Factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy

Social
Factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an ageing population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).

Technological
Factors include ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.

Environmental
Factors include weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness to climate change is affecting how companies operate and the products they offer--it is both creating new marketsand diminishing and destroying existing ones.

Legal

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Factors included are crimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. The model's factors will vary in importance to a given company based on its industry and the goods it produces. For example, consumer andB2B companies tend to be more affected by the social factors, while a global defense contractor would tend to be more affected by political factors. Additionally, factors that are more likely to change in the future or more relevant to a given company will carry greater importance. For example, a company who has borrowed heavily will need to focus more on the economic factors (especially interest rates). Furthermore, conglomerate companies who produce a wide range of products (such as Sony, Disney, or BP) may find it more useful to analyze one department of its company at a time with the PESTEL model, thus focusing on the specific factors relevant to that one department. A company may also wish to divide factors into geographical relevance, such as local, national, and global (also known as LONGPESTEL).

SWOT analysis
SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies

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Strengths
Brand name
Seasons is first canola oil in Pakistan. WOM (Wali Oil Mills) has been leader for almost 10 years to establish the brand name in country. Now it enjoy a good reputation and strong brand loyalty. Recent failure of Sufi canola is the example of Seasons strong brand name in canola oil.

Manufacturing efficiency
WOM has latest production plant, which assures the required quality of its product. WOM has competitive edge on the other companies of extracting the seeds and packing of the refined oil. It has capacity of 48,000 MT per annum, which is highest in Pakistan.

Strong advertisement
As the product of WOM fall in the fast moving consumer goods (FMCG), it needs heavy advertisement to acquire a considerable market share. WOM spend a good amount on advertisement of its product. That is why in the better position of marketing Seasons in Pakistan against the Giants like Lever Bros. and Habib Oil Mills.

Good market share

WOM enjoys a good market share as it has number four position in the market according to sale of the product.

Quality consciousness
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WOM is considered the best refining unit in Pakistan. It not only producing edible oil of its own marketing but also provides this facility to some other oil mills like Madni Oil Mills, Hamza Ghee Mills etc. The ISO 9001 certification of WOM operation is the authenticity of its clear target of being the leader in quality based products provider.

Weakness
Distribution channels
It was weak distribution in area other than Punjab and KPK. That is why company is not able to increase its market share in the country to point it aims at. The product availability is uneven strong areas.

Weak management
Though the company has been performing well yet it has loopholes in the management. The employees have no clear idea of companys mission and there is impression of centralization in day-to-day decision-making. The weakness proving the failure of the company to expand against the high potential of growth, in the industry

Opportunities
Changing consumer behavior
As the awareness of the people about the heart diseases is increasing, the precautionary measures are getting importance in the routine life of the people. Especially, the high segment of the people is living in cities. People are switching from the usage of Ghee to edible oils. Cooking oil users are switching to pure oil.

Growth of existing market

People are switching from the usage of Ghee to cooking oils, even cooking oil user are switching to pure edible oil.

Threats
Strong Corporation
The existence of some giant competitors in the industry has created an intense competition among the companies. Each of the company has to concentrate of marketing strategy and forward integration for its existence.

New Entrants
So far in canola there are a very few manufactures yet it has a threat as the entry barriers are very low. Initially, the WOM was the only canola oil manufacture in Pakistan but as there is

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no regularity hindrance in manufacturing and refining of canola oil in Pakistan, so new companies are also coming in canola segment.

Substitute products
Any development in health industry may change the habits of our consumers. New products can be brought in very easily which may prove more effective and important for human health, especially for heart disease.

Agricultural based supplies

The base raw material is based on agricultural product. The prices of the raw material based on the crop and weather condition of the country. There is uncertainty in raw material supplies. The WOM has to concentrate on the inventory stocks. The WOM is currently incurring 86% of total COGS on its inventory and raw material stocks are 77% of its current assets for the year 2011

Value Chain
The value chain Analysis (M.Porter)
M.PORTER FIVE FORCES
The Porter's Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you're considering moving into. With a clear understanding of where power lies, you can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. This makes it an important part of your planning toolkit. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. However it can be very illuminating when used to understand the balance of power in other situations.

Understanding the Tool

Five forces analysis assume that there are five important forces that determine competitive power in a business situation. These are

1-Supplier Power
Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are.

2-Buyer Power
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Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms to you.

3-Competitive Rivalry
What is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous strength.

4-Threat of Substitution
This is affected by the ability of your customers to find a different way of doing what you do for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power.

5-Threat of New Entry

Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it

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The value chain (M.PORTER)

Firm infrastructure H.R.M Technology Development Procurement Support Activity

In bond Operations Out Marketing Services Logistic bond & Logistics Sales

Primary Activity

1 Firm infrastructure
The management of the company consists of Board of Directors, as the nature of the company is Public Limited. It is listed in Karachi Stock Exchange. It is a subsidiary of National group of Industries. Mr. Muhammad Bashir is the Chairman of the group and Chief Executive of WOM. Mr. Amir Bashir is running the firm as Managing Director of the firm.

2-Human Resource Management

The WOM has no harm department. It has a cause of company slow growth and failure in acquiring the desired and deserving market share.

3- Technological development
There is no technological development in the process of refining and extracting of natural oil. So company has no such arrangement or worries about this development. The company has already been utilizing the plant, which is considered the best in Pakistan.

4- Procurement
No doubt it is in the initial stages yet company is meeting its current raw material and supplies requirement quite efficiently with quite professional relations with suppliers. The raw material is of seasonal nature so the company has to keep a sufficient stock for at least one year and has to maintain an inventory level to avoid stock out. The company has to buy the raw material

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almost on cash basis as the Payment period to Creditors show 13 days for year 2000. The company meets this requirement by acquiring short-term loans from bank.

5-Inbound Logistics
The company has strong control over raw material handling as inventory in days shows the rate of 91 days in 2000. The basis reason for this high rate is the nature of raw material. The WOM has its own local office in Multan territory from to it has direct a purchase of local seed. This is not possible without a well-defined system in such a big set up like WOM.

6-Operations
The companys production plant situated at ferrozewatooan Faisalabad Road. The company is using full capacity of its production plant.

7 Outbound Logistic
Company has a weak distribution channels in southern and Baluchistan province. It has only one distributor in Quetta for whole Baluchistan province. But now the Company finding new financially strong parties for its products distribution

Analysis of various Marketing Activities

Marketing Mix
Marketing Mix is comprised of four heads these are Product, Place, Promotion and Price. Here we will discuss all four heads briefly.

Product
The main product of WOM is oil and ghee which is marked in about two dozens packing. These products are market in different packages.
WOM Season 1/ 2.5/ 5 kg Pouch / Tins 0.5/ 1/2. 5/ 3 / 4.5/10ltr Pouch Bottle Tin Cane

Place
The companys production plant situated at ferozwatooan Faisalabad Road. The company is not using full capacity of its production plant. WOM markets its full range o0f offers to whole Pakistan. It has been facing a distribution problem and Company has a week distribution Prepared by Ghulam Dastgeer and group fellows
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channels, the unavailability has been reported in many cities even the plant is working on full capacity. On the other hand it has the lowest availability in southern and Baluchistan it is trying to overcome the problem and finding new distribution channels.

Promotion
WOM is involved in heavy promotional activities. They keep the competitors activities and encounter in terms of publicity and advertisement. For example, it has managed the joint promotional activities with Macdonalds restaurant. The grand art competition in girls colleges and School The company also concentrating on signboard, publicity, Heart Meal at Institute of cardiology is one of the best examples of promotional activities of WOM.

Price
Wali Oil Mills Ltd. produces the rapeseed oil and to some extant of cotton seed oil in different packaging of carton and bottles Pack Size 1.0 Ltr Bottle (1*20) 3.0 Ltr Bottle (3*6) 2.25 Ltr Jar (8*2.25) 4.5 Ltr. Jar (4*4.5) 2.25 Ltr. Tin (4*2.250) 4.5 Ltr. Tin (4*4.45) 10.0 Ltr. Jar/Cane (2*10) 16.0 Ltr. Jar/Cane (1*16) 1.0 Ltr Pouch (12*1) . Price for Per Piece 167.94 486 381.16 753.04 738.67 770 2065.68 2376.67 136.67

Competitors
Dalda Rafhan Corn Oil Super Habib Tullo Soya Supreme Sufi cooking Oil

COMPETITORS ANALYSIS
Competitors view (Packing Wise)
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Company Name
Lever Brothers Rafhan Best Food Ltd. Habib Oil Mills Ltd. Wazir Ali

Brand
Dalda Rafhan Corn Oil Super Habib Tullo Soya Supreme

Sunflower Cooking Oil

5lt, 4.5lt, 2.5 lt 10 lt, 4.5 lt, 2.25 lt, 1.00 lt 5.0 lt, 2.5 lt, 3.0 lt, 1.00 lt 5 lt, 4.5 lt, 3.0 lt, 2.5 lt , 1.00 lt 10 lt, 2 lt, 2.5 lt, 1.00 lt 5 lt, 3.0 lt, 2.5 lt, 1.00 lt 10 lt, 5 lt, 2.50 lt

Canola Cooking Oil

1 lt, 2.25 lt, 3.0lt, 4.5 lt,10 lt

Hamza Vagetable Oil & Ghee Ind. Wali Oil Mills Ltd.

Sufi Cooking Oil Seasons

5 lt, 3.0 lt, 2.5 lt, 100 lt 10 lt, 4.5 lt, 3.0 lt 2.25 lt,1.00 lt, 0.5 lt

Process and problems

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What is cooking oil?

Oils and fats used for cooking and frying foods are called Edible or Cooking Oils. They can be from vegetable or animal source. Chemically speaking, oils are Tri-Glycerides or Fatty-Acid Glycerin Esters (FAGE). One Glycerin molecule combines with three Fatty-Acid molecules to form one FAGE. Oils are a blend of different types of FAGEs. The Oils can be differentiated on the basis of the length of carbon chain in the Fatty Acids and the number and location of double bonds in the carbon chains of the Fatty Acids. Greater the number of double bonds between two carbon atoms, the greater is the extent of unsaturated fatty-acids in the fatty-acid profile of the oils. Unsaturated oils and fats are considered more desirable than saturated oils and fats from health point of view.

Types of vegetables oil and fats

Vegetable Oils are obtained from a variety of seeds, grains and nuts. Most common types of oil-bearing seeds and nuts are Canola, Castor, Coconut, Corn (Maize), Cottonseed, Mustard, Olive, Palm, Palm-Kernel, Peanut (Groundnut), Rapeseed, Safflower, Soybean, and Sunflower. Other major specialty oils are obtained from Almond, Avocado, Cashew,

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Grapeseed, Jatropha, Pecan, Pine, Shea, and Walnut. There are literally hundreds of other seeds and nuts that are available regionally around the world.

Types of Animal Oils and Fats

Animal Oils are obtained from a variety of animals. Most common types of oils and fats include Chicken-Fat (Chicken), Fish-Oil (Fish), Lard (Pigs), and Tallow (Cows). Each one of these oils and fats comes in edible and non-edible categories and multiple grades within each category.

Why Refine Oil?

All oils and fats have impurities such as Moisture, Solids (Insolubles), Gums (Lecithins), FreeFatty Acids (FFA), Waxes, and Compounds of Sodium, Potassium, Magnesium, Calcium, and other metals. These impurities must be removed to improve the functionality of the oils. Other characteristics of oils (such as Color, odor, and taste) are also considered impurities by modern consumers. These impurities are removed in a series of steps such as degumming (to remove gums), neutralizing (to remove FFA), bleaching (to remove color), deodorizing (to remove odor and taste), and dewaxing or winterization (to remove waxes).

What is RBD Oil?

Refined oil is commonly called Refined, Bleached, and Deodorized (RBD) oil. As described earlier, these are the three main steps in the refining process; although additional steps are required in most cases.

Chemical Refining
Oil is treated with caustic lye for separation of free fatty acids from oil. This is a conventional process that can be applied to all oils. A byproduct of alkali refining is soap-stock, which is used for manufacture of low quality washing soap. Alternately, the soap-stock can be treated with acid to recover fatty acids. The waste-water from refinery requires extensive treatment. This can be avoided by alternate physical refining process.

Physical Refining

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In physical refining, the free fatty acids are removed from oil during FFA stripping. The alkali treatment is completely avoided. This reduces the load on waste-water treatment. This process is becoming more popular.

Degumming
The purpose of degumming is to remove gums. All oils have hydratable and non-hydratable gums. a. Water Degumming: Hydratable gums are removed by treating oils with water and separating the gums. The gums can be dried to produce lecithin. b. Acid Degumming: Non-Hydratable gums are removed by treating oils with acids and separating the gums.

Neutralizing
The purpose of neutralizing is to remove Free-Fatty Acids (FFAs). Traditionally, FFAs are treated with caustic soda (NaOH). The reaction produces Soaps which are separated from the oil. Because trace amounts of soaps remain in the oil, the oil is either washed with water or treated with Silica. Some processors prefer not to perform caustic neutralizing. Instead, they prefer physical refining in which the FFAs are evaporated from the oil under high temperature and vacuum. This process can be combined with deodorization step described under FFA stripping. Physical refining process is preferred because (a) it does not produce soaps; (b) it recovers fatty acids that provide better cost recovery; (c) there is smaller yield loss compared to caustic refiningespecially for oils with higher FFAs; and (d) it is a chemical-free process.

Bleaching
The purpose of bleaching is to remove color pigments contained in the oils. The oil is treated with Bleaching Clays that adsorb the color pigments. The clay is filtered and the clean bleached oil is stored for further processing. Process flow diagram is attached.

FFA Stripping

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As mentioned previously, the equipment can be slightly modified to achieve physical refining of FFAs. Since the conditions for deodorization and physical refining are almost identical, the modified equipment can be employed to achieve deodorization as well as physical refining.

Fatty-Acid Recovery
Fatty-Acids are evaporated (distilled) in FFA Stripping. The Fatty-Acid vapors are condensed by direct contact with liquid Fatty-Acids to recover the evaporated Fatty-Acids. The distillation and condensation of Fatty-Acids is accomplished under very high vacuum to lower the boiling point of Fatty-Acids and prevent them from oxidizing.

Dew axing/Winterizing
The purpose of winterization is to remove waxes especially in those oils that contain wax. Such oil is subjected to chilling and filtration to remove waxes and other high melting point substances. Winterizing is also used to separate the unsaturated fats from unsaturated fatsespecially in Palm Oil. The chilling process solidifies the saturated fats; thus enabling separation via filtration.

Hydrogenation
Vegetable Oils have varying degrees of saturation levels. Some food products can only be prepared in saturated oils & fats. Hence, some food companies hydrogenate vegetable oils to produce desired level of saturation in the Oils & Fats. Vegetable oils can be hydrogenated under high temperature and pressure in the presence of a catalyst.

Bakery Fat
The bakery industry used hydrogenated oil (i.e., shortening). However, the shortening for bakery application should be of smooth texture. Granular texture, while desired in banaspati ghee, leads to bleeding of fat in bakery products. Hence, hydrogenated oil is cooled under controlled conditions to get a product with smooth plastic texture suitable for the bakery industry. Techno hem manufactures scraped-surface heat-exchanger to produce bakery fat.

Lecithin
Gums (Lecithin) present in Vegetable Oils are valuable emulsifier and an additive in prepared foods. Hence, it may be profitable to recover them for sale to food companies. The degumming process described above produces a mixture of gums, oil, and water. The mixture of gums, oil, and water is introduced in a thin-film evaporator operating under vacuum to remove water. The resulting dry mixture of gums and oil is sold as crude dry gums or lecithin. The main design concerns are that the evaporation of water should be quick and take place under higher vacuum to prevent charring and discoloring of gums.

Acid-Oil
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The caustic neutralization process described above produces Soap Stocka mixture of Soaps (Fatty-Acid Salts), Oil, and Water. Soap Stock, by itself, is a low value by-productusually a waste product. However, it contains considerable amount of Fatty Matter, which may be profitably recovered for sale as a higher-value product. This is accomplished by converting Soaps into Fatty Acids by reacting with an Acid. The resulting product is a mixture of Fatty Acids and Oil (commonly called Acid Oil).

Glycerolizes
The physical refining process described above produces Fatty Acid Distillate a mixture of Fatty Acids and Oil. The value of the Distillate may be enhanced by converting Fatty Acids into Oils. This is accomplished by reacting Fatty Acids with Glycerin to produce Oil. The resulting product is dried to recover oil for sale as a higher-value product.

Negative health effects

Hydrogenated oils have been shown to cause what is commonly termed the "double deadly effect", raising the level of LDLs and decreasing the level of HDLs in the blood, increasing the risk of blood clotting inside blood vessels A high consumption of omega-6 polyunsaturated fatty acids (PUFAs), which are found in most types of vegetable oil (e.g. soybean oil, corn oil the most consumed in USA, sunflower oil, etc.), may increase the likelihood that postmenopausal women will develop breast cancer. A similar effect was observed on prostate cancer in mice. Plant-based oils high in monounsaturated fatty acids, such as olive oil, peanut oil, and canola oil, are relatively low in omega-6 PUFAs and can be used in place of high-polyunsaturated oils

Storage

The model was applied to the analysis of an industrial storage plant. The refinery processes sunflower, Canola and corn oil with a maximum residual solvent content RSC of 0.1% by weight Higher RSC values were taken into account (e.g., 0.38% and 0.75% by weight). The tank farm is equipped with a heating system which prevents the vessel cooling to temperatures lower than about 18C in presence of cold weather. Prepared by Ghulam Dastgeer and group fellows
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PRODUCTION AND OPERATION MANAGEMENT

For temperatures higher than 18C the operative temperature can be assumed equal to the average ambient temperature.

Supplier
The raw material rapeseed is importing from Canada and Australia. However the local purchase of sunflower is made through farmers

Distribution
The distribution is not own the concept of 3rd party contract prevailed for distribution then the distributors touch the wholesaler, retailer, and end consumers

Warehouses
The warehouses are established in the main cities of the country included Lahore, Karachi, Multan, Rawalpindi

Conclusion and Recommendation

The development of environmentally friendly process has its definite difficulties and challenges. The increase in yield that can be achieved by the methods described previously is certainly a very suitable solution applied to small industries. However, the use of these methods on large industries will be a dilemma, where the quantity produced is a far comparison to the common method of solvent extraction. The higher cost, especially in enzyme procurement and ultrasound infrastructure pose a significant problem. Even so, as the growing trend of healthy products in which less-processed product such as corn oil are well appreciated and rewarded with premium prices, this scenario is without doubt an opportunity that cannot be ignored. The increasing public awareness of the environment has also helped to change the paradigm. Buyers these days do not mind paying more for organic and chemical free products. Furthermore, the possibility of clean production can also be developed due to the possibility to reuse the by-products generated. The ease of application is clearly the advantage of aqueous extraction; moreover, its performance can be improved with either of the use of enzymes or ultrasound assistance. Cold extraction process promises a consistent means to produce high enough yield. Supercritical fluid extraction provides a technique with high extraction rates. Meanwhile, the purification technique, flexibility and ease of application are the advantages of adsorptive refining, whereas more specific purpose can be obtained by membrane filtration. With these advantages, surely there is no reason to not be able to produce high quality edible oil with environmentally friendly methods; all the more, because it is much appreciated with a high price in the market.

Prepared by Ghulam Dastgeer and group fellows

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