Technological Institute of the Philippines

EXECUTIVE
SUMMARY
 Technological Institute of the Philippines

EXECUTIVE SUMMARY

Constraints are the factors that are taken into consideration in the

production of Magnesium Sulfate Heptahydrate. These are the factors that may

limit the production process which can be internal or external.

 Economic Constraints

This are the factors that can affect the financial stability of Epsom Philippines

Corporation. The factors taken into consideration are the selling price and

marketability of the product.

 Health and Safety Constraints

This constraint pertains to the health and safety risk the employees may

encounter inside the production plant. This includes the health risk that the

employees may encounter inside the production area and the safety risk that can

cause harm to the employees working environment.

 Sustainability Constraints

This factors are the constraints that the Epsom Philippines Corporation may

encounter in the span of production. This constraint pertains to the supply of the

raw materials.

 Manufacturability Constraints

This refers to the crystallization technique employed in the production. This

factor takes into account the product yield of the two crystallization technique.

ii
 Technological Institute of the Philippines

 Environmental Constraints

This constraint refers to the plant location’s environmental factors, geological

location and the average climate and weather of the location, that could possibly

affect the plant and its production.

iii
 Technological Institute of the Philippines

ECONOMIC CONSTRAINTS

Magnesium Sulfate Heptahydrate, commonly known as Epsomite Salt, is

sold in the market in the form of crystals, powder, or granules. The demand for

Magnesium Sulfate Heptahydrate increases as its adopted use in the agricultural

field and personal care and cosmetics increases.

Figure I. The 2018 Global Magnesium Sulfate Market Revenue by Application

(Source: Market Research Future 2019)

As seen in Figure I, The market of Magnesium Sulfate Heptahydrate

favors food additive, medical and fertilizer applications. Fertilizer being its

biggest market. There is a significant growth in the use of Magnesium Sulfate

Heptahydrate in the agricultural field accounting for 30% market share in 2018

(Source: Market Research Future 2019), and base on the accounts it is likely to

grow further.

The Philippines is a country that specializes in the agricultural industry.

As of now, there is no known manufacturer of Magnesium Sulfate Heptahydrate,

iv
 Technological Institute of the Philippines

a fertilizer additive, here in the Philippines. It is continually being imported from

countries like China and Germany. Therefore, it is reasonable to put up local a

plant that will supply for the need of the product. The Epsom Philippines

Corporations aims to sustain the demand for Magnesium Sulfate Heptahydrate in

the local market.

The Magnesium Sulfate Heptahydrate import selling price from China in

the market is PhP 76.1 per kg (Source: Alibaba). While the Epsom Philippines

Corporation plans to sell its product at PhP 62.73 per kg in the local market.

Table I. Price and Plant Capacity Comparison of Local and Import

Magnesium Sulfate Heptahydrate

Price

China (import) PhP 76.1/kg

Epsom Philippines PhP 62.73/kg

Corporation (local)

Based on the product demand, it is reasonable to build a local plant that

will help satisfy the local need for Magnesium Sulfate Heptahydrate especially

in the agricultural industry. Looking at the market selling price, the Epsom

Philippines Corporation should be able to sell its product at a cheaper price

compared to the imported product. Although selling the product in the local

market will be a challenge to the corporation as this is a start-up plant and most

businessmen tend to take into priority businesses that they already have a history

of doing business with.

v
 Technological Institute of the Philippines

HEALTH AND SAFETY CONSTRAINTS

The Epsom Philippines Corporation is considering scenarios and possible

causes of harm or injury to the workers that will become restrictions to the work

efficiency and plant production. Possible accidents in the handling and transport

of the materials in production are being considered.

The Epsom Philippines Corporation will follow the ISO developed

standard that will promote the safety of the workers, reduce risk in the working

environment and establish a safer working condition and setting. ISO

45001:2008 Occupational Health and Safety Management Systems will be the

guidelines that the Epsom Philippines Corporation will follow.

Table II. Health and Safety Hazard Rating

HEALTH AND SAFETY HAZARD RATING

0 No significant risk
1 Slight or minimal hazard
2 Moderate hazard
3 Serious hazard

Table III. Health and Safety Constraints of Raw Materials and Products

SEVERITY SEVERITY
REPRODUCTIVE
COMPOUND OF SENSITIZATION OF
TOXICITY
NAME IMMEDIATE LEVEL CHRONIC
LEVEL
EFFECTS EFFECTS
Raw Dolomite 1 1 0 3
Materials Sulfuric Acid 3 3 0 3
Magnesium
Sulfate 1 0 0 0
Heptahydrate
Calcium
Sulfate 1 0 0 0
Products
Dihydrate
Magnesium
0 0 0 0
Sulfate
Calcium
0 0 0 0
Sulfate

vi
 Technological Institute of the Philippines

Table III illustrates the different values for the health hazard of the raw

materials and the products used and produced during the production of

Magnesium Sulfate Heptahydrate. Base on the values given, Sulfuric acid

possesses the most danger to the worker’s health and safety.

Improper handling of sulfuric acid can cause chemical burns and

permanent blindness if it makes direct contact with the eyes. It is advised to have

an eye flush station near the area where sulfuric acid is used in the workplace.

Table IV. Sulfuric Acid Exposure First Aid

Type of Exposure First Aid

The area where the sulfuric acid came
into contact with your skin should
immediately be flushed with lukewarm
Skin Contact
water for at least 30 uninterrupted
minutes. Seek immediate medical
attention.
If the sulfuric came into contact with
the eyes, immediately flush the eyes
Eye Contact
with water for at least 30 minutes and
immediately seek medical attention.
In case of ingestion, absolutely do not
induce vomiting instead rinse the
Ingestion mouth with water. Continually rinse the
mouth and seek medical attention as
soon as possible.
If sulfuric acid aerosols is inhaled, seek
Inhalation fresh air and immediately look for
medical attention.

To address this health risk, it is recommended for the workers’, especially

those in the production area, to wear proper protective equipment – safety

goggles, safety gloves, safety shoes, and protective clothing, when handling

materials and when inside the plant production area.

vii
 Technological Institute of the Philippines

The Epsom Philippines Corporation will also put signs to the equipment

especially those that contains and deals with toxic materials and operates at high

temperatures to serve as a remainder and warning for the workers.

Table V. Safety and Precaution Signage

Name Illustration Application

 On locations where

leaks are possible

Caution Slippery
 Uneven surfaces
Surface
 Areas dealing with

wet materials

Caution Corrosive  For the Sulfuric

Substance Acid Storage Tank

 Surfaces where there

Trip Hazard
are protruding pipes

 For equipment with

high operating

temperatures
Caution
(evaporator, dryer,

heat exchangers,

etc.)

viii
 Technological Institute of the Philippines

 To monitor the

worker’s habit – if

they are complying

with the set rules and

CCTV in operation regulations inside

the production area

 To serve as a witness

in case an accident

occur

In conclusion, the Epsom Philippines Corporation will follow the set

regulations and standard of the International Standardization Organization (ISO)

as well as the standards set by the Occupational Safety and Health Administration

(OSHA). The Epsom Philippines Corporation will also make sure to follow the

policies set by the Department of Labor and Employment (DOLE) regarding the

employees’ rights and safety.

ix
 Technological Institute of the Philippines

SUSTAINABILITY CONSTRAINTS

The raw materials for the production of Magnesium Sulfate Heptahydrate

are Dolomite mineral and Sulfuric Acid. Both supplier of Dolomite and Sulfuric

Acid are in the Philippines therefore, transportation of these materials won’t be

much of a problem.

The transport of Dolomite mineral from its origin to the plant will take

about 30 minutes through Cebu South Coastal Road which is 13 km away Talisay

City, the location of the plant. While, the transport of Sulfuric Acid from its

supplier in Laguna will approximately take 55 minutes to Batangas Port and 20

hours to ship to Cebu Port and a travel time of approximately 20 minutes to arrive

at the plant location. To address the time constraint, the Epsom Philippine

Corporation will stack materials that can support the operation for a week.

Table VI. Raw Materials Travel Distance and Transport Time

Raw Material Supplier Travel Distance Travel Time

Philippine
Dolomite Mining Service 13 km 30 minutes
Corporation
TNC Chemicals
Sulfuric Acid 793 km 1,247 minutes
Philippines Inc.

x
 Technological Institute of the Philippines

MANUFACTURABILITY CONSTRAINTS

Use of Stirring and Non Stirring Crystallization Technique

The Magnesium Sulfate (MgSO4) solution is fed through a crystallization

equipment to form its heptahydrate variety. Stirring crystallization technique

yields a more stable product yield while non-stirring crystallization technique

yields a variable product yield.

Table VII. Comparison of Stirring and Non Stirring Technique

Crystallization
Product Yield
Technique
Stirring More Stable
Non Stirring Varies

Table VII shows that the non-stirring crystallization technique yields a

variable amount of produce goods. This means that the amount of product is

different per operation. This is not good for the plant operation because the

amount of product produce over the materials use is fluctuating and therefore the

capacity of the plant to supply the product to the market is not definite. While the

stirring crystallization technique yields a more stable amount of product,

therefore the capacity of the plant to supply the product to the market is more

definite and stable.

xi
 Technological Institute of the Philippines

ENVIRONMENTAL CONSTRAINTS

The Epsom Philippine Corporation will build its production plant at Cebu

South Road Properties Economic Zone, South Reclamation Project, Cebu City.

It is a 300 hectare island-type reclamation area which spans from the shore of

mainland Cebu to Kawit Point.

GEOLOGICAL

Due to the plant’s location, which is near the shore and is also a

reclamation area, its geological classification is Soft/Unconsolidated Sediment.

This means that the area is made of backfill material which makes the land soft,

therefore a strong/deep foundation is needed in the construction of the

infrastructure. This also means that the weight of the building will be limited.

Figure II. Metro Cebu Geology Classified by Softness

(Source: MGB, DENR and JICA Study Team)

xii
 Technological Institute of the Philippines

Since this is an unconsolidated soil and is near the shore, it is also prone

to Liquefaction. This means in case an earthquake occurs, the soil could loss ans

strength and temporarily behave as a viscous liquid because it becomes water

saturated.

The Epsom Philippines Corporation plans to address this by making sure

the foundation of the plant infrastructure is deep and solid to accommodate

changes or movement in soil. It is also advised to do a building check-up – for

major structures like support beams and pillars would be done annually, and for

minor structures like tanks would be done quarterly.

Table VIII. Epsom Philippines Corporation Plant Check-up Schedule

Structure Check -up

Support Beams
Pillars
Major Frames Annually
Bearings
Main Line Pipe
Tanks
Equipment Case/Support
Minor Quarterly
Pumps and Distributed
Pipes

WEATHER AND CLIMATE

Cebu City is categorized as a Type II climate where seasons are relatively

dry from November to April and wet during the rest of the year. It is usually hot

in the city with temperature ranging from 24ºC – 32ºC and on rare occasions at

xiii
 Technological Institute of the Philippines

temperatures below 23ºC and above 34ºC (Source: Weatherspark.com).

Figure III illustrates which provinces in the Philippines are at risk to

temperature increase. Cebu is rated as the thirteenth province to be at risk to

temperature increases, with a rating of “high risk”. This means during the

summer or dry season the temperature in the province could range from warm to

hot to sweltering temperatures.

Figure III. Risk to Projected Temperature Increase

(Source: Manila Observatory and Department of Environment and Natural Resources)

xiv
 Technological Institute of the Philippines

Figure IV. Cebu City Average Hourly Temperature

(Source: Weatherspark.com)

Figure IV shows that average temperature in the city of Cebu in hourly

average throughout the year. It can be seen that the temperature in the city is

mostly divided to warm or hot temperature. The plant being close to the sea could

experience a much hotter temperature than the given average temperature.

This type of setting could affect the worker’s efficiency at work as hot

climates tends to make the body get exhausted much faster. If the worker’s

efficiency is lessened, the amount of products the plant can produce in a day

would also be lessened. Hot weathers also follow health risk like heat stroke or

dehydration. The Epsom Philippines Corporation aims to address this health risk

by making sure that there are enough facilities to ensure that the employees are

properly hydrated e.g. drinking stations and ventilated mess hall and pantry.

xv