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1-1
1.1
1.2
1.3
BACKGROUND INFORMATION
MANAGEMENT OF ENVIRONMENTAL IMPACTS FROM PALM OIL INDUSTRY
BUSINESS PERSPECTIVES IN PALM OIL INDUSTRY IN THAILAND
1-1
1-5
1-8
2-1
2.1
2.2
2-1
2-6
MIS INTRODUCTION
3-1
3.1
3.2
3.3
3.4
BACKGROUND
OBJECTIVES OF MIS APPLICATION
BENEFITS OF MIS APPLICATION
MIS PRINCIPLES
3-1
3-1
3-2
3-2
4-1
4.1
4.2
4.3
4.4
4-1
4-4
4-21
4-29
LIST OF TABLES
Table 1.1a
Table 1.1b
Table 1.2a
Table 3.4a
Table 4.2a
Table 4.2b
Table 4.2c
Table 4.2d
Table 4.2e
Table 4.2f
Table 4.3a
Table 4.4a
1-2
1-2
1-6
3-14
4-7
4-10
4-13
4-16
4-19
4-20
4-22
4-34
LIST OF FIGURES
Figure 1.1a
Figure 2.1a
Figure 2.2a
Figure 2.2b
Figure 2.2c
Figure 3.4a
Figure 3.4b
Figure 4.1a
Figure 4.2a
Figure 4.2b
Figure 4.2c
Figure 4.2d
Figure 4.2e
LIST OF ABBREVIATIONS
AFTA
BOD
COD
CPO
DG
DIW
EFB
ERP
FFA
FFB
GTZ
GUI
ICT
IPPCS
IT
KPI
LAN
MIS
MRP
MS Access
MS Excel
NOx
PEA
PC
INTRODUCTION
The Department of Industrial Works (DIW) is implementing a project on
Management Information Systems (MIS) for Industrial Pollution Prevention
and Control Project, supported by German Society for Technical Cooperation
(GTZ). Main objectives of the MIS Project are to establish environmental
information database at the DIW, to introduce an MIS for improving ecoefficiency of selected industries, to make consultancy services available to
industries locally, and to establish public information centre on industrial
pollution.
As part of this MIS Project, ERM-Siam has been commissioned to undertake
a study on Elaboration of User Requirements and Capacity Assessment of
Palm Oil and Native Starch Industries. The study results provide necessary
inputs for the design and development of MIS for enhancing competitiveness
and eco-efficiency for these two industries. One element of the study tasks is
to establish MIS guideline for improving eco-efficiency and competitiveness
for palm oil and native starch industries.
Scope of this guideline addresses the application of MIS for eco-efficiency
improvement for palm oil industry. The principal objectives of this
guideline are:
Chapter 1
1.1
BACKGROUND INFORMATION
Palm oil production is one of the important agro-industries in Thailand with
major contribution to the countrys development during the past 20 years.
Palm oil is an agro industrial product, which has been listed for free trade by
Asean Free Trade Area (AFTA). However, Thailand had to request for
suspension of free trade in palm oil for a period of time, to give the palm oil
mill industry a chance to become more competitive, particularly with its
neighbouring countries Malaysia and Indonesia. Oil Palm tree varieties,
plantation management, extraction and refinery technology as well as downstream utilisation has to be developed and improved further to be competitive
with other palm oil producers in South East Asia.
The palm oil industry has a high potential for biomass energy utilisation and
therefore is one of the industrial sectors, which can contribute substantially to
the supply of alternative sources of energy. To be more competitive and to
ensure supply of alternative sources of energy the palm oil mills therefore
have to introduce suitable measures for eco-efficiency improvement including
improved energy/environmental management.
Total area for Oil palm plantation in Thailand is currently (2005) about 1.93
million Rai, allowing the production of about 4 million tones of Crude-PalmOil (CPO) in 2005, which is an 8% increase compared with the CPO
production in 2003.
The share of palm oil in Thailands vegetable oil industry is about 58%,
indicating the importance of palm oil for the countrys supply of edible oil.
Details of vegetable oil production distribution are shown in Figure 1.1a.
Figure 1.1a
Rice Bran 3%
Coconut 4%
Palm Kernel 11%
Palm 58%
Soybean 21%
The majority (98%) of oil palm plantation and palm oil mill industry in
Thailand is located in the South of Thailand, only one palm oil mills is located
in the Central Region i.e. Chonburi province. The provinces with large
plantation areas are Krabi, Surat Thani, Chumporn, Satun and Trang.
Details of oil palm plantation during 2002 2004 are provided in Table 1.1.a.
Table 1.1a
2002
563,908
460,567
317,648
73,508
55,828
40,545
35,866
31,241
24,593
13,389
13,002
6,106
3,600
1,671
2,389
1,643,861
2004
595,517
545,365
374,921
77,752
73,535
52,055
59,523
48,068
29,825
14,529
25,264
9,088
10,971
11,556
7,123
1,935,092
Currently there are a total of 38 palm oil factories using standard wet process
located in eight (8) provinces of Thailand. Total milling capacity is 1,610 tonFFB per hour. A list of the palm oil factories is provided in Table 1.1b below.
Table 1.1b
Milling Capacity
(ton- FFB/hr)
Krabi Province
1. Thai Oil Palm Industry & Estate Co., Ltd (Univanich 1)
2. Siam Palm Oil & Refinery Industry Co., Ltd. (Univanich 2)
3. United Palm Oil Industry PCL
4. Asian Palm Oil Co., Ltd.
5. Srijaroen Palm Oil Co., Ltd
6. Siam Modern Palm Co., Ltd.
7. Nam Hong
8. Andaman Palm Oil Co., Ltd.
9. The Krabi Oil Palm Farmers Cooperative Federation Limited
10. Palmorich Co., Ltd.
11. Univanich Palm Oil PCL (Lamtap: Univanich 3)
12. Wong Bandit
Sub-total
60
30
60
45
45
45
45
15
45
15
45
10
460
Milling Capacity
(ton- FFB/hr)
Chumporn Province
1. Chumporn Palm Oil Industry Public Co., Ltd.
2. Vichitbhan Palm Oil Co., Ltd.
3. Swee Palm
4. Thung Thong
5. Lang Suan Cooperative (LSC)
6. Taweesilp Palm Oil Co., Ltd.
Sub-total
60
60
45
45
15
45
270
Sub-total
45
60
60
45
90
45
30
60
45
60
15
60
615
Sub-total
10
10
Sub-total
45
45
45
135
Sub-total
30
15
45
Sub-total
30
30
Sub-total
Total
45
45
1,610
Source: Department of Alternative Energy Development and Efficiency (DEDE) & GTZ (2004)
Surat Thani province has a total of 12 palm oil mills, which is the highest number
of factories in a single province. Total production capacity of the mills in Surat
Thani province is 615 FFB per hour, followed by Krabi, Chumporn and Trang.
Locations of palm oil factories are close to the oil palm plantations, as shown in
Figure 1.1b.
Figure 1.1b
Chonburi
Chumporn
Numbers of Factories in each Province
More than 10 factories
Ranong
6 - 10 Factories
Surat Thani
1 5 Factories
Pang Nga
Krabi Nakhon Si Thammarat
Phuket
Trang
Pattalung
Pattanee
Songkla
Satun
Yala
Naradhiwas
Source: Department of Alternative Energy Development and Efficiency (DEDE) & GTZ (2004)
Department of Industrial Works
1.2
1.2.1
Table 1.2a
Detail Step
Bunch
Stripping
Oil
Extraction
Screw
pressing
Filtration
Results
Condensate should be
separated from other
wastewater
One more separator
should be added into the
system
Water should be
minimised: and
Detergent usage should be
minimised
Water should be collected
for washing and cleaning
with routine collection; or
automatic skimmer should
be used for routine
control; and equipment
should be checked,
maintained and repaired
as soon as possible
Reducing water
consumption; and
Reducing
emulsification
Oil
Separation
Settling tank
Desanding
Decantercentrifuging
Final Oil
Trapping
Steriliser
condensate
Wastewater
from decanter
(or separator)
Washing and
cleaning
water
Cooling water
from boiler
and
evaporator
oil collection
1.2.2
1.3
1.3.1
1.3.2
1.3.3
Eco-efficiency Improvement
At present, there are a number of drivers, which encourage industries to pay
more attention to eco-efficiency improvement. Such drivers include cost
reduction, responsibility to communities, managing environmental risks and
liability, maintaining market share, profitability, customer demands for
greener product, and regulations. Therefore, improving eco-efficiency by
Department of Industrial Works
Chapter 2
2.1
Figure 2.1a
Steam
Steam
Sterilization
Condensate
Threshing
Empty Fruit
Bunch (EFB)
Digestion
Screw Pressing
Hot Water
Oil
Press Cake
Fiber-Nut
Separation
Vibrating Screen
Fibre
Nuts
Settling Tank
Purifier
Underflow
Dryer
Shell-Kernel
Separation
Crude Oil
Shells
Kernel Drying
Desanding
Palm
kernels
Storage
Decanter-Separator
Sold
Wastewater
Decanter Cake
Water
Chemical
Electricity
Wastewater Pre-treated
Treatment wastewater Biogas
Plant
Plant
Sludge
Effluent
Biogas
Generator
Stream
Turbine
Steam
Boiler
Blowdown Emission
Diesel
Generator
2.1.1
2.1.2
Sterilisation
FFB are sterilised in order to inactivate the natural enzymatic activity and
loosen the fruit, as well as to soften the mesocarp, resulting in easier
extraction of oil. Sterilisation is carried out in autoclaves of 20 to 30 tons FFB
capacity, with the application of live steam, at temperature of 130 Celsius
and pressure of 3.1 bars, during 90 minutes.
2.1.3
Threshing
The sterilised FFB are sent to rotary drum threshers to separate the sterilised
fruits from the bunch stalks.
The generated residues from this process
include empty fruit bunches (EFB) which contain moisture. EFB can be used
as organic fertiliser and soil conditioner as it maintains humidity of the soil.
It can be sold to local farmers for using as a substrate for mushroom cultivation.
Some mills introduce EFB pressing techniques to achieve lower moisture content
in the EFB, which can subsequently be used as biomass fuel in suitable boiler
systems for steam/electricity production.
2.1.4
Digestion
The separated fruits are discharged into vertical steam-jacketed drums
(digesters) and treated mechanically to convert them into a homogeneous oily
mash. Hot water is added to the digester to facilitate homogenisation.
This mash is subsequently put into the oil extraction press (screw press).
2.1.5
Screw Pressing
Screw pressing is a process to extract palm oil from mash. The extracted oil
phase is collected and discharged to the purification section while the solid
parts comprising fibre and nuts are separated by physical means.
This recovery process is further detailed in Section 2.1.8.
2.1.6
2.1.7
2.1.8
2.1.9
Utilities
The main utility system in palm oil mill includes boiler, wastewater treatment
plant and biogas system (which is applicable to some of the palm oil mills).
Boiler
Steam is utilised in various sub-process of palm oil production; for example,
sterilisation and digestion. Raw water is treated in a softener plant for
removal of Ca-hardness and subsequently used as boiler feed water. Fibre is
typically used as boiler fuel. Shell can also be used as boiler fuel in case of
fibre shortage.
Wastewater Management
Generated wastewater from the palm oil mill typically goes to a biological
wastewater treatment process to ensure that effluent quality meets industrial
standard. However, in some palm oil mills, this generated wastewater with
high organic content (BOD 30,000 mg/l, and COD 90,000mg/l) undergoes
anaerobic digestion process as part of the biogas system for generating
electricity. Details are provided in the following section.
Environmental Management Guideline for Palm Oil Industry (1997) has provided
a review of suitable wastewater treatment technologies for palm oil industry,
including primary wastewater treatment, secondary wastewater treatment
and nitrogen removal.
Biogas System
Since palm oil wastewater has high organic load, it is suitable for producing
biogas by using an anaerobic treatment system. In the past, the most popular
wastewater treatment plant was pond treatment system, comprising anaerobic
pond, facultative pond, and polishing pond. Biogas generated from anaerobic
ponds was neither captured nor utilised. As energy price has significantly
increased in recent years, a biogas system has been introduced to palm oil
industry in order to reduce the cost of purchased energy.
Typically 1 m3 of palm oil wastewater can produce 12-16 m3 of biogas.
Consequently, biogas generated from the system is used for generating electricity
and selling back to grid. For example, 1 m3 of biogas generally can generate
around 1-1.2 units of electricity. Moreover, biogas generated from 1 m3 of treating
palm oil wastewater can generate around 29-39 Baht contributing to additional
revenue to palm oil industry (assuming that 70% peak and 30% off-peak is
applied, and average electricity price is 2.44 baht/unit).
In addition, organic loading of the processed wastewater can be reduced, which
eventually minimises effect on water pollution.
2.2
MATERIAL FLOW
Performance of the palm oil production process can be determined by
considering the materials flows of production process. The materials include
inputs to the process (i.e. raw materials and energy) and outputs from the
process (products, wastes and emissions). A concept of material flows is
employed to identify, quantify and improve characteristics of products,
technical processes and eco-efficiency. Through this concept, analysis of
inventory based on balances of material and energy flows, and balance
evaluation are applied.
Assessment of production performance is made possible by material flows.
Thus material flow incorporates itself as a key decisive making factor in
production process. An example of how material flow is inclusive in decisionmaking includes decision on response plans or tasks to be employed in order
to improve or solve any particular problems of production process.
In a typical palm oil mill, key materials influencing the eco-efficiency
performance are crude palm oil (CPO), water, and energy. These key
materials can reflect the causes of under-performing production. Material
flows associated with CPO, water and energy are shown in Figure 2.2a - 2.2c.
Oil in FFB
Recovered Oil
Figure 2.2a
CPO to sell
Oil loss in
Decanter cake
Thru CPO production since entering fresh fruit bunches (FFB) into production
process, losses of CPO occur in various sub-processes. Losses are via empty
fruit bunches (EFB), fibre, wastewater and decanter cake. According to
Environmental Management Guideline for Palm Oil Industry (1997), about 56% of
the oil loss is through solid residues i.e. EFB and fibre, while the other 44 % is
discharged along with the liquid residues (mainly oil-room effluent).
Figure 2.2b
Hot water
Effluent
Fresh water is converted into steam by boiler operation. Steam is mainly used
for sterilisation, and is used for digestion of fruit bunches. The steam is
partially lost in the exhaust of the sterilisation stage. Vibrating screen and
settling tank in the oil room section also require water to aid the processes.
Process wastewater mainly comes from the oil room section prior to being
treated, and discharged as effluent from the wastewater treatment plant.
OIL ROOM
DRY PROCESS
UTILITY
Figure 2.2c
Remark
Oil room section consumes the highest electricity, compared with the other sections.
All machinery and equipment in all sections of the palm oil production
process consume electricity. Electricity is mainly generated by the steam
turbine to sustain the production process, and in absence of plant operations
electricity is generated from the diesel generator. In some factories with
a biogas system electricity is produced mainly for selling and distributing to
Department of Industrial Works
the Provincial Electricity Authority (PEA). The oil room section consumes the
highest electricity, compared with the other sections.
To improve eco-efficiency, materials flows need to be established and
employed in order to understand the inputs and outputs of the production
process. The result is the identification of improvement opportunities within
the process. The material balancing flows function as pointer of where
the data should be collected and behave as balancing evaluation of material
inventory. For instance, through material balancing flow, oil loss within
the production process could be identified including where the loss is
occurring.
However, data and information on eco-efficiency in palm oil industry are
not fully made available at present. Actual information on material balance
of water and energy usage is rarely available. As a consequence, most
information regarding eco-efficiency are not fully utilised by management
to aid decision-making.
Theoretically, analysis of material inventory and balance could be
successfully undertaken, when eco-efficiency data have been continuously
collected. Therefore, the development of data collection, verification,
evaluation and information reporting is of particular concern, and is
a starting point for management information process to support decisionmaking.
In this Guideline, Management Information System (MIS) is introduced for
improving eco-efficiency in palm oil production. The following sections of
the Guideline will describe MIS concept, principles and how MIS could be
applied to palm oil production.
Chapter 3
Introduction to
MIS Application
MIS INTRODUCTION
3.1
BACKGROUND
Management Information System (MIS) is defined as a system or process that
manages the collection, analysis and presentation of information to assist
decision-making and to enhance business competitiveness. MIS is typically
used as a tool by management to assess and monitor business performance
and to help compare or identify possible business alternatives, i.e.
introduction of new activities and process modification in industries.
Basic functions of MIS are to systematically capture data from operations; to
analyse data and transform into meaningful information; and to report and
make use of information such as monitoring performance and improving any
given process or activities.
3.2
Cost reduction;
Increasing quality of products and services;
Increasing innovations and employee motivation;
Responsibility to community;
Profitability;
Managing environmental risks and liability; and
Maintaining or increasing market share.
3.3
3.4
MIS PRINCIPLES
Basic requirements for MIS application and implementation are categorised
into three (3) main elements comprising People, Implementation Process,
3.4.1
People
The most important element in MIS is the people involved since all objectives
and benefits will be addressed by understanding personnel who will also
oversee MIS process, information and tools.
An MIS operation comprises of several tasks; therefore, it is necessary to
group such tasks, based on relevance, and assign roles and responsibilities to
fulfil them. By doing so will not only clearly define roles and responsibilities
to perform MIS processes but also assist plant owners to be able to select and
recruit suitable personnel.
It should be noted that the amount of MIS personnel is based on plant owner
consideration. Typical roles and responsibilities in MIS implementation are
described as follows.
Roles, Responsibilities and Qualifications:
In general, there are three (3) levels of roles and responsibilities for personnel
involved in MIS implementation, comprising management role, supervision
role, and operation role.
Management Role
Every successful MIS requires management support and involvement.
Without management, all data collection and analysis for decision making will
not be meaningful. The main role of management is to bind MIS and other
operation together to implement the decision made from MIS reports and/or
decision-making process. Also, management needs to take an active role in
facilitating the followings:
Supervision Role
Personnel in charge of MIS supervision can be someone who posses an overall
understanding on how to reach the objectives and realise the benefits, while
manage and supervise MIS operation. Thus MIS supervisor is not necessarily
Department of Industrial Works
Operation Role
Operation role can be assigned to any plant staff, who is involved in any
particular process that needs data collection. Typically, the plant personnel
taking the operational role come from different departments such as
production staff and laboratory staff. Understanding that data collection and
MIS procedure implementation are different tasks from regular operation
tasks, selecting personnel for this role requires those who understand and able
to perform MIS tasks with comprehension and care.
At the plant floor, implementing MIS procedures are secondary to operational
tasks unless acquire dedicated MIS personnel. MIS supervisors need to make
sure that MIS operation personnel are trustworthy and honest to their
responsibilities. Otherwise, MIS procedures and data collected will be skewed
and not present actual findings, which will lead to poor analysis, poor
reporting and poor decision making. Above all, it will not assist in realising
the objectives and benefits set out to implement MIS in the first place; hence,
careful selection and monitoring of MIS operation personnel is vital.
Operational roles and responsibilities include:
Implement MIS procedures and tasks at any particular process required;
Collect and enter data into provided system (i.e. software) accurately and
honestly; and
Nevertheless, this would depend on the plant owner insights, budget and
operations.
Department of Industrial Works
3.4.2
processing such as credit card or loan. For palm oil industry, it varies from
plant to plant whether data collection and consolidation is adequate and
reliable. If not, MIS supervisors will need to allocate additional resources to
verify data collected. Consequently, this process will not be emphasized in
this guideline.
Data Processing
Processing of entered data will create sets of information that will allow
management to support decision-making. Each set of information will then be
compared and analysed to measure each production processes efficiency,
illustrated by key performance indicators (KPI), creating plant and industry
benchmarks. Data processing is generally carried out by software.
This process is viewed as the most vital process in MIS processes since data
processing will provide key information such as how efficient each process is,
how each data collected can help improve efficiencies, and how to initially
adjust each process for better throughput according to data analysis.
Personnel involved: MIS Supervisor and Management
Information Reporting and Analysis
Following analysis, set of information will need to be arranged in a
presentable format for reporting. The purpose is to formalise sets of
information in a simple visual format so that high-level executives or
management can easily review it.
In regards to time constraint on management to review the information, it is
critical to standardise reports so that management has little-to-no learning
curve understanding the information. MIS needs to design this displaying
information process into formatted reports while incorporating minimum
time usage as possible; automate such process will be ideal. Recent researches
indicate that significant MIS time and resources are allocated to report
creation rather than necessary processes.
Since different management require different information based on their
interests; therefore, MIS reports should be designed to provide necessary
information for decision-making in the viewpoint of their interests.
Decision-making
This process is mainly managements responsibility. MIS takes a supportive
role. Undeniably, this process is the pinnacle of MIS processes as it
summarises all MIS effort and allows MIS to make recommendations to
management based on analysed information.
Figure 3.4a
Production Control
Process Modification
Decision
making
Management
Data calculation
Information
reporting &
analysis
MIS Supervisor
Data storage
Data collection
& consolidation
Data
verification
MIS Operation
Software-enabled Method
This method requires an interaction with software on a personal computer
(PC). A minimum set of a PC is at the base of this method.
As discussed in the section Data Collection and Consolidation, to
systematically structure entered data, the software interface (screen) is
extremely important. This part in software design is called Graphical User
Interface or GUI. GUI is not only formatting fields on a computer screen but it
is a psychological behaviour pattern that is interpreted into a screen layout so
that users can understand how to use it at best.
Decent GUI allows users to engage and interact with data whether entering,
formatting, calculating or so on with a low learning curve. However, good
GUI design also depends on the software functionality. If it serves simple and
straightforward functions such as data entry, it shall be designed to
accommodate the sequence of data to be entered for such industry specific
process.
No matter how well designed-software GUI is, error occurs at the interaction
of human and PC since human performs data input. In addition, data
auditing and process monitoring are viable options to assure better data
quality and lower human errors.
Calculation and analysis including other MIS processes except decisionmaking can adopt software usage in two approaches: file-based and
purchase.
File-based is where MIS personnel create or adopt file associated to each MIS
processes and deploy them on role usage basis. For instance, data entry at
sterilisation process may have one PC with a file to enter data for such
particular processes involved. This approach, although widely practice,
presents problems of storage, analysis and reporting since data are scattered
in files on multiple PCs. To solve this problem, MIS can customise
productivity software such as Microsoft Excel and Access to service the
information flow. Such approach is an in-house software design, which
requires time, tools (network, cable wiring, database, server and so forth) and
resources and is not standard but highly customised to that particular
business. Consideration to take this approach depends on MIS know-how
and skill.
A viable and standard alternative is to use purchased software, which is
created by reputable companies who have deep knowledge in industry
processes. Supporting information flow for a palm oil mill may require
software that interconnects from each production process to process. This
particular type of software is called Manufacturing Resource Planning or
MRP. MRP is industry standard software but needs to be customised to fit
each plants production process, financial and accounting, and required
3.4.3
Tools
This section introduces MIS tools from paper-based to sophisticated tool, and
their attributes to consider its suitability to adopt.
Paper, Pencil/Pen and Calculator
Paper, pencil/pen and calculator are the most basic tools for any business
operation, and also the fundamental tools for MIS. No matter how
sophisticated MIS implementation can be, these tools would always be
required in business, as they are extremely familiar to any level of business
operation and are mostly adopted. Thus, application of these basic tools in
MIS process is straightforward. The advantage of these tools is that they
require almost no explanation in usage. The manual methodology requires
these sets of tools as mentioned previously for business continuity planning
and support.
For MIS, these tools can be applied specifically to data collection and
calculation processes. Unavoidably, as manual it is, prone to errors it
becomes. Repetition and verification of each process may be required to
guarantee its correctness.
Personal Computer (PC) and Productivity Software
In the late 1970s and early 1980s the personal computer (PC) has made its way
into every business. The reason is because it can support several tasks in one
machine lending a lot of equipment obsolete such as the typewriter.
However, it is the software inside the PC that makes all the difference.
Software are computer programs designed to serve specific tasks. The most
widely adopted next to operating system (programs to make PC function) is
productivity software such as Microsoft Office.
In a package of productivity software combines a word processor,
spreadsheet, presentation, communication, small database version of software
for users to work on.
Wireless Network
Wireless Network will use radio emission as media to carry the data over the
air between each PC. The advantage of wireless is the flexibility of location if
within radio emission reach, but it will sacrifice speed. When compare similar
size of networks, wireless networks are more expensive than wired.
MRP and ERP
MRP stands for Manufacturing Resource Planning; similarly ERP stands for
Enterprise Resource Planning.
Both are software designed to connect
business processes and facilitate information flow using PCs, servers, and
network.
Each industry has its own specific MRP/ERP as processes are different.
For a given industry, MRP/ERP attempts to consolidate most processes by
using MIS. Currently, the average business that implements MRP/ERP can
bind 20% of the overall operation. This is due to the complexity of each
department and the interconnectivity to facilitate information flow.
Each department has its own sets of processes, which can create a complex
flow of information within the department. Implementing MRP/ERP requires
the management to to emphasize to all departments for cooperation. Over the
past two decades, Key Performance Indicator seems to be the driving force for
department cooperation.
Figure 3.4b illustrates different tools at each MIS process in accordance with
information flow.
A misconception of tools is to select, acquire and utilise the most advanced or
up-to-dated hardware and software when, functionality-wise, a moderate set
of computer hardware and software can perform such tasks adequately.
Adopting overqualified tools always irrationally causes increase in MIS
budget.
It should be noted that tools are to facilitate people to carry MIS processes and
information flow; understanding the methodologies, nonetheless, is more
essential than selecting and acquiring tools. The reason being that with such
understanding, MIS can better select and apply suitable tools that support
process requirements.
Table 3.4a addresses suggested tools for different methodologies (Manual,
Software-enabled and Automated) associated with MIS processes.
Figure 3.4b
Production Control
Process Modification
Decision making
Management
Data calculation
Information
reporting & analysis
MIS Supervisor
Data storage
Data
verification
MIS Operation
Table 3.4a
Suggested Tools for MIS Implementation with their Pros and Cons
MIS
Process
Methodologies
Manual
Software-enabled
Automated
Combination of
hardware and
software to
control
production
process
equipment
Data
Collection
Pen/paper form
Pen/paper form
Pen/paper form
Data Entry
Pen/paper form
Excel/Access
Packaged
software/MRP
Data
Calculation
Form/calculator
Excel/Access
Packaged
software/MRP
Analytical
software or
business
intelligence
Information
Analysis &
Reporting
Paper report
Access/paper report
Packaged software/
paper report
Automated
report creation
and distribution
Pros/ Cons
Widely adopted/
low investment
Currently best
practice/significant
investment
Highly effective/
high investment
Hard evidence
data/ high error rate
Ease of access to
MIS/Decentralised
data & storage
Accurate data/
sensitive system
Labour intensive
Computer literate
personnel required
Training required to
use software
Free up
resources/ rely
on solution
vendor
Chapter 4
Applying MIS Process to
Palm Oil Industry
4.1
4.1.1
4.1.2
4.1.3
4.1.4
4.1.5
Utility (Section# 5)
This section comprises a process of plant steam and electricity generation.
Typical fuel that is used for boiler operation is fibre from the dry process.
Boiler is employed for generating steam to be used within the palm oil mills,
whereas a steam turbine is used for producing electricity for plant internal
use. Stack emissions from boiler are one of the pollution outputs from palm
oil mills.
A representative Production Process Model for MIS application for
improving eco-efficiency in palm oil industry is shown in Figure 4.1a.
DRY PROCESS
Recovered Oil
UTILITY
OIL ROOM
Figure 4.1a
IP-GTZ
4.2
Priority 1 Data that are directly related to palm oil productivity and the
use of main raw materials as well as the management of value-added
unused materials where economically viable to palm oil mills. In addition,
environmental data required to be reported to the government are also
included (Examples of data include the use of fresh fruit bunch, the use of
water, saleable shell and effluent quality); and
Priority 2 Data that are indirectly related to productivity of the palm oil
mills including pollution outputs from the production process, and also
those data that play a key role in the production process however are
hardly or costly measured at present (Examples of data include disposal of
decanter cake and boiler stack emissions).
Priority 1 data are the minimum data requirements for applying meaningful
MIS for increasing business competitiveness and enhancing eco-efficiency for
a typical palm oil mill. In addition, these data will be further processed into
information or performance indicators to allow the management to use and
make decisions based on the given information. A set of management
information is addressed in Table 4.4a of this Guideline.
Locations of data to be collected are illustrated in Figure 4.2a-4.2e.
The collecting locations addressed in Figure 4.2a-4.2e are indicated by code
consisting of a letter with numbering.
IP-GTZ
Whereas, Priority 2 data are optional data requirements that are useful and
help business competitiveness and eco-efficiency however these data are
considered as the second priority for the palm oil mills (with less concern than
Priority 1 data). Thus, these data will not be transformed to the information
or performance indicators in this Guideline (but can be added on according to
the specific needs of individual palm oil mill).
In general, the collected data are first stored in a database and processed in
MIS software, and then key performance indicators (KPIs) are created and
these information are reported to management for decision-making.
IP-GTZ
Figure 4.2a
Table 4.2a
Proposed Data Collection Scheme for Primary Production Process Section (Section#1)
No
Data
Unit
Priority*
Objectives
Collection
Frequency
Responsibility
Measurement Methods
I1
Ton
Daily
Purchasing
I2
Use of FFB
Ton
Daily
Production
C1
Baht
Daily
Purchasing
N/A
C2
Baht/Ton
To monitor unit cost of ripe FFB bought onsite. This data reflects the quality of FFB
being bought (ideally good quality)
Daily
Purchasing
N/A
C3
Baht/Ton
Daily
Purchasing
N/A
C4
Supplier of FFB
N/A
Daily
Purchasing
N/A
I3
Ton/Batch
Per batch
of
sterilisation
Production
L1
Daily
QA Lab
P1
Ton
Monthly
Production
Weighing/ Scale
No
Data
Unit
Priority*
Objectives
Collection
Frequency
Responsibility
Measurement Methods
L2
Daily
QA Lab
Weighing/ Scale
P2
Ton
Monthly
Purchasing
Weighing/ Scale
S1
Baht/Ton
Monthly
Purchasing/
Sale
N/A
E1
Ton
Monthly
Utility
Weighing/ Scale
W1
Ton
Monthly
Purchasing
Weighing/ Scale
Remark
* - Priority of data collection is classified into two levels: 1 as minimum data requirements and 2 as optional data requirements, based on the criteria mentioned earlier.
Recovered Oil
OIL ROOM
Figure 4.2b
Table 4.2b
No
Data
Unit
Priority*
Objectives
Collection
Frequency
Responsibility
Measurement Methods
I4
Installed Capacity
Ton-FFB
Monthly
Production
Calculation
P10
Hour
Daily
Production
N/A
P3
Ton
Daily
Production
P9
Ton
Daily
Production
S2
Baht/Ton
Daily
Purchasing
N/A
S9
Ton
Daily
Accounting
S10
Baht
Daily
Accounting
N/A
S13
Ton
Daily
Accounting
S14
Baht
Daily
Accounting
N/A
I5
Use of Water
m3
Daily
Production/
Utility
L3
Daily
QA Lab
L4
Daily
QA Lab
W2
Ton
Monthly
Production
No
Data
Unit
Priority*
Objectives
Collection
Frequency
Responsibility
Measurement Methods
W3
Ton
Monthly
Production
Weighing/ Scale
Remark
* - Priority of data collection is classified into two levels: 1 as minimum data requirements and 2 as optional data requirements, based on the criteria mentioned earlier.
Figure 4.2c
Table 4.2c
No
Data
Unit
Priority*
Objectives
Collection
Frequency
Responsibility
Measurement Methods
P4
Generation of Kernel
Ton
Daily
Production
S3
Baht/Ton
Daily
Purchasing/
Sale
N/A
S11
Ton
Daily
Accounting
S12
Baht
Daily
Accounting
N/A
L5
Daily
QA Lab
P5
Ton
Monthly
Production
L6
Daily
QA Lab
Weighing/ Scale
P6
Ton
Monthly
Purchasing
Weighing/ Scale
S4
Baht/Ton
Monthly
Purchasing/
Sale
N/A
E2
Ton
Monthly
Utility
Weighing/ Scale
No
Data
Unit
Priority*
Objectives
Collection
Frequency
Responsibility
Measurement Methods
P7
Generation of Fibre
Ton
Monthly
Production
P11
Production of Fibre
Ton
Daily
Production
Weighing/ Scale
P8
Ton
Monthly
Purchasing
Weighing/ Scale
S5
Baht/Ton
Monthly
Purchasing/
Sale
N/A
E3
Ton
Monthly
Utility
I7
Ton
Daily
Utility
W4
Ton
Monthly
Purchasing
Weighing/ Scale
Remark
* - Priority of data collection is classified into two levels 1 as minimum data requirements and 2 as optional data requirements, based on the criteria mentioned earlier.
Figure 4.2d
Table 4.2d
Proposed Data Collection Scheme for Wastewater Treatment and Biogas System Section (Section#4)
No
Data
Unit
Priority*
Objectives
Collection
Frequency
Responsibility
Measurement Methods
I6
kg
Monthly
Utility
Weighting/ Scale
E4
kWh
Daily
Utility
Electricity Meter
W5
m3
Daily
Utility
W6
Influent Wastewater
Characteristics (BOD) prior to
being passed to the treatment
system
mg/l
Weekly
QA Lab
W10
Influent Wastewater
Characteristics (COD) prior to
being passed to the treatment
system
mg/l
Weekly
QA Lab
W7
Treated Wastewater
Characteristics (BOD) at the final
pond of the treatment system
mg/l
Monthly
QA Lab
W11
Treated Wastewater
Characteristics (COD) at the final
pond of the treatment system
mg/l
Monthly
QA Lab
W8
mg/l
Weekly
QA Lab
No
Data
Unit
Priority*
Objectives
Collection
Frequency
Responsibility
Measurement Methods
W12
mg/l
Weekly
QA Lab
W9
Generation of Wastewater
Sludge
Ton
Annually
QA Lab
Weighing/ Scale
E5
Generation of Biogas
m3
Daily
Utility
E6
kWh
Daily
Utility
Electricity Meter
S6
Baht /
kWh
Daily
Utility
N/A
E11
m3
Annually
Utility
N/A
Remark
* - Priority of data collection is classified into two levels: 1 as minimum data requirements and 2 as optional data requirements, based on the criteria mentioned earlier.
Figure 4.2e
From Threshing
UTILITY
Water
Steam
Turbine
Steam
E8
Electricity used or
sold to Grid
E10
To Sterilisation Digestion
E7
Boiler
Biomass
Fuel
W13 W14
Diesel
Generator
Blowdown Emission
Steam
Table 4.2e
No
Data
Unit
Priority*
Objectives
Collection
Frequency
Responsibility
Measurement Methods
E7
Ton
Daily
Utility
E8
kWh
Daily
Utility
Electricity Meter
E9
Consumption of Electricity
Purchased from Provincial
Electricity Authority (PEA)
kWh
Monthly
Utility
Electricity Meter
E10
kWh
Monthly
Utility
Electricity Meter
S7
Baht
Monthly
Purchasing
N/A
S16
Baht /
kWh
Monthly
Purchasing
N/A
S8
Baht
Monthly
Purchasing
N/A
S17
Baht/l
Monthly
Purchasing
N/A
W13
mg/l
Every Six
Months
Utility
W14
mg/l
Every Six
Months
Utility
Remark
* - Priority of data collection is classified into two levels: 1 as minimum data requirements and 2 as optional data requirements, based on the criteria mentioned earlier.
Table 4.2f
No
Data
Unit
Priority*
Objectives
Collection
Frequency
Responsibility
Measurement Methods
L7
Efficiency of Decanter-Separator
System
Annually
Production
Manager
L8
Annually
Production
Manager
L9
Annually
Production
Manager
L10
Annually
Production
Manager
Remark
* - Priority of data collection is classified into two levels: 1 as minimum data requirements.
4.3
DATA PROCESSING
In order to enhance business advantage and eco-efficiency of the palm oil mill,
Priority 1 data listed in the previous section are required to be processed and
transformed into information or key performance indicators using MIS
software that can allow the management of native starch factories to use such
information for their own analysis and making decision.
Table 4.3a illustrates these management information (or key performance
indicators), data calculation formula, and their definitions, whereas Table 4.4a
in the next section suggests on whom the management information are
reported to, and also the reporting frequency.
Table 4.3a
No
Key Performance
Indicator
Reference
Timeframe
Calculation Formula
Unit
Description
Daily
[C1 / I1]
Baht/Ton-FFB
PPP2
Daily
PPP3
Generation of EFB
Monthly
PPP4
Monthly
PPP5
Monthly
[P2 X S1]
Baht
Daily
No
Key Performance
Indicator
Reference
Timeframe
Calculation Formula
Unit
Description
OIL2
Daily
Baht/Ton-FFB
OIL3
Daily
Bath/Ton-FFB
OIL4
Generation of
Decanter Cake
Monthly
OIL5
Daily,
Monthly
[L3 - L7]
OIL6
Daily,
Monthly
[(L3 - L7) X W2 X
(S10/S9)]
Baht/Day
OIL7
Oil Loss in
Wastewater (1)
Daily,
Monthly
[L4 - L8]
OIL8
Daily,
Monthly
Baht/Day
No
Key Performance
Indicator
Reference
Timeframe
Calculation Formula
Unit
Description
OIL9
Water Consumption
Daily,
Monthly
[I5 / I2]
m3-Water/
Ton-FFB
OIL10
Capacity Utilisation
Monthly
[M I2 / I4] X 100
Kernel Yield
Daily
DRY2
Daily
Baht/Ton-FFB
DRY3
Total Generation of
Shell Due to ShellKernel Separation
Monthly
DRY4
Daily
[L6 - L9]
DRY5
Daily,
Monthly
Baht/Day
No
Key Performance
Indicator
Reference
Timeframe
Calculation Formula
Unit
Description
DRY6
Monthly
[P6 / M I2]
Ton/Ton-FFB
DRY7
Monthly
Baht/Ton-FFB
DRY8
Generation of Fibre
Monthly
DRY9
Daily,
Monthly
[L5 - L10]
DRY10
Daily,
Monthly
Baht/Day
DRY11
Monthly
DRY12
Monthly
Baht/Ton-FFB
No
Key Performance
Indicator
Reference
Timeframe
Calculation Formula
Unit
Description
Generation of
Wastewater (Influent
to the treatment
system)
Daily,
Monthly
[W5 / I2]
m3/Ton-FFB
WAS2
Wastewater
Treatment Efficiency
(BOD)
Monthly
[(Influent Wastewater
Characteristics Treated
Wastewater Characteristics) /
Influent Wastewater
Characteristics] X 100
[(AveW6 W7) /
AveW6] X 100
WAS3
Wastewater
Treatment Efficiency
(COD)
Monthly
[(Influent Wastewater
Characteristics Treated
Wastewater Characteristics) /
Influent Wastewater
Characteristics] X 100
[(AveW10 W11) /
AveW10] X 100
WAS4
Organic Loading of
Biogas System
Weekly
[(Influent Wastewater
Characteristics X Wastewater
Generated) / Biogas Tank Volume]
/ 1,000
[(W6 X W5)
/ E11] / 1,000
kg/ m3 of
Biogas Tank
Volume / Day
WAS5
COD Removal by
Biogas System
Weekly
[(Influent Wastewater
Characteristics - Treated
Wastewater Characteristics from
Biogas System) / Influent
Wastewater Characteristics] X 100
[(AveW10 AveW12) /
AveW10] X 100
WAS6
Generation of Biogas
Daily,
Monthly
[E5 / W5]
m3 Biogas / m3
Wastewater
No
Key Performance
Indicator
Reference
Timeframe
Calculation Formula
Unit
Description
WAS7
Generation of
Electricity from
Biogas System
Daily,
Monthly
[E6 / E5]
kWh/m3 Biogas
WAS8
Saleable Electricity
from Biogas System
Daily,
Monthly
[E6 X S6]
Baht/Day
Utility (Section#5)
UTL1
Generation of Steam
from Boiler Operation
Daily,
Monthly
[E7 /I7]
Ton-Steam/
Ton-Fibre
UTL2
Total Electricity
Consumption
Monthly
[Electricity-Steam Turbine +
Electricity-PEA + Electricity-Diesel
Generator]
[ME8 + E9 + E10]
kWh
UTL3
Total Electricity
Consumption Rate
Monthly
[(Electricity-Steam Turbine +
Electricity- PEA + Electricity-Diesel
Generator)/ FFB Used]
[(ME8 + E9 + E10) /
M I2]
kWh/Ton-FFB
No
Key Performance
Indicator
Reference
Timeframe
Calculation Formula
Unit
Description
UTL4
Electricity
Consumption from
the Steam Turbine
Generation
Monthly
UTL5
Electricity
Consumption from
the Provincial
Electricity Authority
(PEA)
Monthly
UTL6
Electricity
Consumption from
Diesel Generator
Monthly
Remarks
(1) - The amount of kernel and oil loss/gained depends on internal control value of individual palm oil mill factory.
(2) Use particular indicator from previous month
4.4
CPO Production
Capacity Utilisation
Kernel Yield
Kernel Production
Use of FFB
Water Consumption
Factory Manager
CPO Yield
CPO Production
Capacity Utilisation
Kernel Yield
Kernel Production
Use of FFB
Production of Fibre
Generation of Biogas
Production Manager
CPO Yield
CPO Production
Capacity Utilisation
Kernel Yield
Kernel Production
Use of FFB
Utility Manager
Use of FFB
Water Consumption
Generation of Wastewater
Generation of Biogas
Table 4.4a
No
Management Information
Unit
Owner
Factory
Manager
Production
Manager
Utility
Description
Baht/TonFFB
Daily
Daily
Daily
Daily
The total cost of FFB purchased in each buy depends on the quality
of FFB (ripe or unripe). Average unit cost of acquired FFB represents
the overall quality of FFB being purchased as a whole in each day.
PPP2
Daily
Daily
Daily
I2
Use of FFB
Ton/Day
Daily
Daily
Daily
Daily
PPP3
Generation of EFB
Monthly
Monthly
The ratio of EFB generated per the amount of FFB used indicates the
generation rate of EFB and efficiency of the threshing process.
PPP4
Monthly
Monthly
Monthly
PPP5
Baht
Monthly
Monthly
Monthly
C1
Baht
Daily
Daily
Daily
Daily
Daily
Daily
Crude palm oil leaving the oil room indicates the overall oil yield of
the mill and is an important performance indicator of the oil mill.
P10
Hour
Daily
Daily
Daily
Daily
P3
CPO Production
Ton/Day
Daily
Daily
Daily
No
Management Information
Unit
Owner
Factory
Manager
Production
Manager
Utility
Description
S2
Baht/Ton
Daily
Daily
Daily
S9
Ton
Daily
Daily
Daily
S10
Baht
Daily
Daily
Daily
S13
Ton
Daily
Daily
Daily
S14
Baht
Daily
Daily
Daily
OIL2
Baht/TonFFB
Daily
Daily
Daily
OIL3
Baht/TonFFB
Daily
Daily
Daily
This figure indicates the value added from FFB to CPO. Operating
cost is not taken into account for this figure.
OIL4
Monthly
Monthly
The ratio of decanter cake generated per the amount of FFB indicates
the generation rate of decanter cake and efficiency of the decanting
process.
OIL5
Monthly
Monthly
Daily
OIL6
Baht/Day
Monthly
Monthly
Daily
OIL7
Monthly
Monthly
Daily
Daily
Baht/Day
Monthly
Monthly
Daily
OIL8
(1)
No
Management Information
Unit
Owner
Factory
Manager
Production
Manager
Utility
Description
OIL9
Water Consumption
m3-Water/
Ton-FFB
Monthly
Monthly
Daily
Daily
OIL10
Capacity Utilisation
Monthly
Monthly
Monthly
Kernel Yield
Daily
Daily
Daily
Kernel production rate indicates the overall kernel yield of the mill
and is one of the important performance indicators of the oil mill.
P4
Kernel Production
Ton/Day
Daily
Daily
Daily
S3
Baht/Ton
Daily
Daily
Daily
S11
Ton
Daily
Daily
Daily
S12
Baht
Daily
Daily
Daily
DRY2
Baht/TonFFB
Daily
Daily
Daily
DRY3
Monthly
Monthly
DRY4
Daily
Daily
DRY5
Baht/Day
Monthly
Monthly
Daily
No
Management Information
Unit
Owner
Factory
Manager
Production
Manager
Utility
Description
DRY6
Ton/TonFFB
Monthly
Monthly
Monthly
DRY7
Baht/TonFFB
Monthly
Monthly
Monthly
DRY8
Generation of Fibre
Monthly
Monthly
P11
Production of Fibre
Ton
Daily
Daily
Fibre is typically by product of palm oil mill. This data indicates the
actual amount of fibre produced daily.
DRY9
Monthly
Daily
Daily
DRY10
Baht/ Day
Monthly
Daily
Daily
The value of oil loss in Fibre is the amount of money in Baht that is
lost based on the contamination of oil in the fibre.
DRY11
Monthly
Monthly
Monthly
DRY12
Baht/TonFFB
Monthly
Monthly
Monthly
Generation of Wastewater
(Influent to the treatment
system)
m3/Ton-FFB
Monthly
Monthly
Daily
WAS2
Wastewater Treatment
Efficiency (BOD)
Monthly
No
Management Information
Unit
Owner
Factory
Manager
Production
Manager
Utility
Description
WAS3
Wastewater Treatment
Efficiency (COD)
Monthly
WAS4
kg/ m3 of
Biogas Tank
Volume
Weekly
WAS5
Weekly
Weekly
Weekly
WAS6
Generation of Biogas
m3 Biogas /
m3
Wastewater
Monthly
Monthly
Monthly
Daily
I6
kg/Month
Monthly
E4
kWh/Day
Daily
W6
Influent Wastewater
Characteristics (BOD) prior to
being sent to the treatment
system
mg/l
Monthly
W10
Influent Wastewater
Characteristics (COD) prior to
being sent to the treatment
system
mg/l
Monthly
W7
Treated Wastewater
Characteristics (BOD) at the
final pond of the treatment
system
mg/l
Monthly
Monthly
Monthly
Monthly
No
Management Information
Unit
Owner
Factory
Manager
Production
Manager
Utility
Description
W11
Treated Wastewater
Characteristics (COD) at the
final pond of the treatment
system
mg/l
Monthly
Monthly
Monthly
Monthly
WAS7
kWh/m3 Biogas
Monthly
Daily
WAS8
Baht/Day
Monthly
Monthly
Daily
Utility (Section#5)
UTL1
Ton-Steam/
Ton-Fibre
Monthly
Daily
Daily
UTL2
kWh
Monthly
Monthly
Monthly
Monthly
Total electricity consumption of the whole palm oil mill comes from
various sources comprising electricity generation from the steam
turbine and diesel generator as well as the electricity purchased from
the Provincial Electricity Authority (PEA). Total consumption
reflects average electricity required for all production process.
UTL3
kWh/
Ton-FFB
Monthly
Monthly
Monthly
Monthly
Total electricity consumption of the whole palm oil mill comes from
various sources comprising electricity generation from the steam
turbine and diesel generator as well as the electricity purchased from
the Provincial Electricity Authority (PEA). Total consumption rate
reflects average electricity required for one Ton of FFB.
UTL4
Monthly
Monthly
Monthly
No
Management Information
Unit
Owner
Factory
Manager
Production
Manager
Utility
Description
UTL5
Monthly
Monthly
Monthly
UTL6
Monthly
Monthly
Monthly
Electricity from diesel generator is required for the oil mill, especially
during the startup of boiler and this consumption rate reflects the
performance of boiler especially during the startup. The less
percentage of the index, the better performance of boiler.
S7
Baht/Month
Monthly
Monthly
Monthly
The money spent on the purchased electricity from the PEA is one of
the important operating costs of the mill.
S16
Baht/kWh
Monthly
Monthly
Monthly
The average money spent on the purchased electricity from the PEA
is also one of the important operating costs of the mill.
S8
Baht/Month
Monthly
Monthly
Monthly
The money spent on the purchased diesel for boiler startup is one of
the important operating costs of the mill.
S17
Baht/l
Monthly
Monthly
Monthly
The average money spent on the purchased diesel for boiler startup
is also one of the important operating costs of the mill.
Remarks
(1) - The amount of oil loss/gained depends on internal control value of individual palm oil mill factory.
References
REFERENCES
Agricultural Economic Office, Ministry of Agriculture (2005) 2004 Agricultural
Statistics of Thailand http://www.oae.go.th/statistic/yearbook47/ [Accessed
on 21 October 2005]
Cecelja, Franjo (2001) Manufacturing Information and Data Systems, First Edition :
Analysis, Design and Practice (Manufacturing Engineering Series)
Department of Alternative Energy Development and Efficiency (DEDE) and
Deutsche Gesellschaft fr Technische Zusammenarbeit GTZ GmbH (2004)
Thai-German Program for Enterprise Competitiveness, Eco-efficiency Component,
E3Agro- Project, Desk Study on Palm Oil Industry
Department of Industrial Works (DIW) and German Gesellschaft fr
Technische Zusammenarbeit (GTZ) GmbH (1997) Environmental Management
Guideline for Palm Oil Industry
Laudon, Kenneth C. (2005) Management Information Systems : Managing the
Digital Firm (9th Edition), Prentice Hall
Schwalbe, Kathy (2005)
Edition
1.
2.
3.
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