OPERATIONS MANAGEMENT

FINAL PROJECT

PRESENTED BY:
MUHAMMAD ATIF
L1S07MBAM0118
UZMA ILYAS
L1S07MBAM0214
KAMAL SUBHANI
L1S07MBAM2132

PRESENTED TO:
PROF. RAZA RAFIQUE
SECTION B

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University of Central Punjab Page 2
 BY THE GRACE OF ALLAH

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 TABLE OF CONTENETS

No. Page

1- Acknowledgment

2- Note
5

3- Abstract
6

4- Company Overview
7

5- Mission 8

6- Company Introduction 9

7- Introduction to Process 12

8- Process Flow Chart 13

9- Process Description 15

10- Capacity Plants 19

11- Bottle Necks 21

12- References
22

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University of Central Punjab Page 5
 ACKNOWLEDGEMENT

We would like to thank Jalil Ahmad Khan Gul (Assistant

Manager Technical) and Faisal Raza Khan(Senior Manager
of finance and Project Manager) of Lahore Compost for
providing us sufficient information for the completion of
this project.

We would also like to thank our course instructor Prof.

Raza Rafique to give us the opportunity to convert our
bookish knowledge into practical experience.

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 NOTE

We have performed this project on Lahore Compost

to the best of our knowledge and abilities.

However, the organization was reluctant in sharing

internal information with us. Therefore, we had to

make assumptions and estimations especially

concerning the calculation part of the report.

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ABSTRACT

Lahore Compost is a Saif Group project which is one of the leading

industrial and services conglomerates in Pakistan. Lahore
Compost Limited is operating in the field of environmental
sciences. The company has setup a first composting plant at
Mahmood Booti in Lahore under an agreement with City District
Government Lahore(CDGL).Its first of its kind in Pakistan that
produces purely organic compost using household garbage, cow
dug, fruit market waste, etc. as raw material and convert it to
purely organic compost.

We would say it’s a process that converts “Garbage into Gold”.

Firstly garbage is brought from various towns of Lahore by CDGL
to dumping site. Then it brought to the sorting plant where non-
compostable materials are sort out. Then it goes through the
composting process where various scientific techniques are
applied to check the factors e.g.PH, temperature, humidity, etc.
Then its brought to sieving unit for sieving then it goes to the
grinding unit and finally undergoes packaging.

Then we are finding some bottlenecks in the process which are

based on fault in machinery, workers and use of improper raw
material. Then we are giving suggestions on these problems. In
short it was a great learning venture we really enjoyed it.

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COMPANY OVERVIEW

Saif Group is one of the leading industrial and services conglomerates in

Pakistan. Its primary operations encompass:

• Oil and gas exploration,

• Power generation,
• Textiles manufacturing,
• Real estate development,
• Healthcare Services,
• Information Technology Services,
• Software Development
• And Environmental Management.

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MISSION STATMENT
Our goal is to constantly innovate in a diverse range of business areas,
providing unique products and services of the highest quality, while bringing
robust value to our shareholders.

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INTRODUCTION OF LAHORE COMPOST

Lahore Compost (Private) Limited is a Saif Group company, operating in the

field of environmental management. The company has set up its first
composting plant at Mahmood Booti under an agreement with the City
District Government Lahore (CDGL). The project has been setup on Build-
Operate-Transfer basis, whereby the project will be transferred to CDGL after
a period of 25 years. This is the first public-private project in Pakistan on
such a large scale in the area of Municipal Solid Waste (MSW) recycling.
According to City District Government Lahore (CDGL) officials the plant, bought from
Belgium, would transform around 20 percent of the city’s waste, around 1,000 tonnes of
garbage, daily into 250 tones of organic fertilizer.

The project will utilize organic content of MSW, mainly consisting of

household kitchen waste, to convert it into compost (organic fertilizer)
through a process of 70 to 90 days. Compost is a 100% naturally rich organic
amendment used for improving the performance of all types of soils. It
contains no synthetic chemicals; its natural occurring nutrients are derived
slowly from the raw material used. Rich in valuable micro-organisms and
humus content, it can be used for wide range of agricultural fertilizer.

Pakistan is an agricultural country with most of its revenues derived from

sale of Agri products. The per hector yield in Pakistan is considered to be one
of the lowest in the world and the main reason for this is the imbalanced use
of fertilizers which in turn is mainly due to inappropriate knowledge. The
Government of Pakistan is determined to develop this very important sector
of our economy through increased productivity. Additionally GOP has also
shown its interest in providing support to initiatives in the alternate fertilizer
sector.

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PRODUCTS

Compost is an organic fertilizer, which is environment

friendly and not only enhances the cultivated yield of land
but also helps in maintaining its productivity. Compost has
the unique ability to improve the properties of soil
physically, chemically and biologically in addition to
supplying macro and micro nutrients to the plants. Few of
the benefits of this useful product are listed below:

1. Reduces the soil bulk density and improves the soil

structure directly by loosening heavy soils with organic
matter.
2. Increases the water holding capacity of the soil.
3. Improves the efficiency of Chemical Fertilizer.
4. Reduces Chemical Fertilizer requirement (Experiments
at Institute of Soil and Environment Sciences,
University of Agriculture Faisalabad.)
5. Provides plants both macronutrients of Nitrogen
Phosphorus, and Potash (NPK) along with a number of
micronutrients.
6. Improves water infiltration and drought tolerance.
7. Increases ease of cultivation.
8. Improves root growth and yields.
9. Protects plants from diseases.
10. Reduces and kills weed seeds and degrades pesticides.

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COMPOST PROPERTIES
Compost has been considered as a valuable soil amendment for centuries.
Most people are aware that using composts is an effective way to increase
healthy plant production, help save money, reduce the use of chemical
fertilizers, and conserve natural resources. Compost provides a stable
organic matter that improves the physical, chemical, and biological
properties of soils, thereby enhancing soil quality and crop production. When
correctly applied, compost has the beneficial effects on soil properties, thus
creating suitable conditions for root development and consequently
promoting higher yield and higher quality of crops.

COMPOST BENEFITS
Pollution remediation

• Absorbs odors and degrades volatile organic compounds.

• Binds heavy metals and prevents them from migrating to water
resources or being absorbed by plants.
• Degrades and, in some cases, completely eliminates wood
preservatives, petroleum products, pesticides, and both chlorinated
and non chlorinated hydrocarbons in contaminated soils.

Pollution prevention

• Composting requires solid waste as its raw material, thus provides

answer to solid waste disposal question faced by city district
governments of Pakistan.
• Avoids methane production and leach ate formation in landfills by
diverting organics for composting.
• Absorbs odors and degrades volatile organic compounds. Prevents
pollutants in storm water runoff from reaching water resources, and
protects groundwater quality.

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 • Prevents erosion and turf loss on roadsides, hillsides, playing fields,
and golf courses.
• Minimizes odors from agricultural areas.
• Composting raw manure can minimize any potential environmental
or nuisance problems. Raw manure is one of the primary culprits in
the pollution of waterways, and odor from farms is considered an
increasing problem in the rural areas.

Introduction to Process
Type of Business :
Manufacturing

Type of Operations Strategy: Make to

Stock

Production Process: Mass

Production

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 MSW

AZIZ BHATTI TOWN SHALIMAR TOWN RAVI TOWN WAHGA TOWN

CDGL WEIGH BRIDGE

LAHORE COMPOST (PVT) LTD CDGL DUMPING GROUND

SORTING UNIT 1 SORTING UNIT 2

COW DUNG+GREEN WASTE+MANDI WASTE

Rejection Organic Waste Recovery

PILLING AREA (LCL)

COMPOSTING PAD

SIEVING UNIT

BAGGING UNIT REJECTION

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 WARE HOUSE

PROCESS FLOW DIAGRAM

Ra
w Wind
Ma Sorti Rows
teri
al ng

Raw
Mate
rial Shredde
r
Sieving
Process

Grinding
Process

Finish
Packing
ed
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Goods Process
Page 16
 PROCESS DESCRIPTION

• Dumping Site:
The Lahore Compost has a 25years Contract with CDGL that he will
provide half of the total garbage which is 700tones that comes from the
mainly Four Towns: Data Town, Ravi Town, Shalimar Town and Aziz Bhatti
Town by their own trucks. That huge amount of garbage is kept under the
1400meter square.

About the household garbage like vegetable waste, fruits waste, grass,
tree leaves etc. where this garbage keep under the shed with the help of
machine and workers all garbage is mixed well so that the quality of the
each and every particles of the fertilizer after manufacturing remains the
same. The each truck number, time reload, Date reload and weight are
noted.(Appendix 1)

• Sorting Process:
The Garbage was Sorted manually before the Plant was Imported from
the Belgium. But now it is sorted by sorting plant. The sorting plant sorts
the inorganic materials like Polythene Bags, Construction material,
needles, Stones etc.

The company faces a problem of the polythene bags which are used in
great quantity by the house wives and usually the product wastes is put
into that bag and throw into the garbage. The Lahore Compost usually
collects that type of garbage to manufacturing the fertilizer. Now
minimize the effect of that problem company purchase a Conveyer belt
plant by the help of this the workers stand along a side and remove the
bags. But because of the very huge quantity of these polythene bags the
workers are also not as quicker as needed. Moreover the belt also
removes the metals with the apparatus fitted in it known as metal
separator.

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 Sorting Plant

Pulter Plant Thrash

• Composting Process:
After the material is sort-out from the Non-Compost able materials, the
next process is to bring this material in open air (9) Nine Inches cemented
field. This cemented field is known as composting pad. The Material is
kept in the form of rows and each row has 4-5 feet difference from other
row. Rows named as windrows. Here the compostable material is kept
for 3months or 90days where the moisturizing level must be 20 percent.
Windrows are open field and by the help of machine named as Pulter
provides Air, Water and such type environment which is actually needed
to the Living Organisms to grow well. This process of composting is called
Aerobic Composting. There is another type of composting that is named
as Anaerobic composting which actually performs this Process under the
shed or covered area which requires huge amount of cost to cover the
28000meter square area that is one of the reason the company use the
Aerobic composting.

This composting process takes 70 to 90 days or 3months. In this time the

Palter Plant is used at the windrows 2times in a week to water and air the
compost able material. Composting period is shortened by using a
chemical known as Inoculums which reduces time from 90 to 50 days. In
short composting process contains lots of scientific techniques.

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 Composting Pad

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 Composting Process

• Sieving process:
After receiving material from composting pad it is sieved through sieving
plant and after that the material has to go through from the 6mm thick
iron net with air pressure by which the compost material is mash into
small particles that are easily resolvable in the crops fields. This process
is going through with the help of Thrashing Plant.

Than the compost material has to go through a vibrator plant where the
unresolved particles are further mash in to the small particles. In this
process other side of thrashing Plant is use.

• Filling\Packaging Plant:
After going through the Thrashing Plant the compost material is filled in
to the Bags and with the help of loader sent it to the Store room which
has a capacity of over 50 Thousands Bags of fertilizer at a time and
covered with the iron shed.

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 Capacity of Planning

Design Capacity:
The design capacity of Lahore Compost is 1500 to 2000 bags per day and
25000 bags per month, which is based on the following factors:

• Good weather

• Sufficient compostable material

• Availability of labor

• Plant is in running position

DESIGN CAPACITY (calculations):

Lahore compost has the capacity to produce 1500-2000 bags each day. But they
use to produce 1600 bags normally. So design capacity is as follow:-

Design capacity (monthly) = (no of units produced each day) (no of days of
month)

= (1600)(30)

=48000 bags.

Design capacity (yearly) = (no of units produced each day) (no of days of
year)

= (1600)(360)

=576000 bags.

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 EFFECTIVE DAILY CAPACITY:
[No. of workers or machines x hours per shift x No. of shifts x
Utilization x Efficiency]

No of machines = 4

Hours per shift = 6 hours

No. of shifts =2

Break = 1 hour

Efficiency = 90%

Utilization = 5/6 =83.33%

So effective capacity = [(4)(6)(2)(83.33%)(90%)]

= 36 hours =2160 minutes

PRODUCTIVITY:
Productivity is the ratio of output to input. Productivity of Lahore compost
is as follow:-

Productivity (Household garbage) = Output/Input

=700 tons/ 4 machines

=175 tons/machines

Productivity (fresh vegetables) = Output/Input

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 =700 tons/ 3 machines

=233.33 tons/machines

Bottlenecks of the Lahore Compost Pvt. Ltd

• Because of very huge quantity of garbage and workers are also not
that much quick, Plant stops many times during sorting process
because garbage stuck in the metal separator.

• Pulter is the most important machine in composting process and if it’s

been out of order the whole process ceases and its maintenance is
also very tedious.

• During the whole process lots of the raw material is wasted and cannot
be converted into finished product so the productivity is not effective.

Recommendations:

• The workers who are removing garbage should continuously remove

the garbage instead of waiting for the machine to stop and then
remove the garbage. Moreover there should be sufficient number of
workers assigned for this task so that problem may not occur.

• The company must have an extra pulter machine and extra parts in
stock so that the process may not stop and job is being performed
efficiently and effectively.

• Instead of house hold garbage the organization should use directly

compostable garbage (e.g. fruits waste, cow dung, crops etc) so that
there should be no need of sorting and material can be directly sent
to composting pad for composting process.

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 References:
Personal

Hassan Zahid Syed 0300-8440620

(Manager Technical & Sale)

Jalil Ahmad Khan Gul 0301-8411368

(Asst. Manager Technical)

Faisal Raza Khan 0300-5008263

(Senior Manager of finance and Project Manager)

Book:

Operations Management by Chase-Jacobs-Aquilano

Operations Management by Roberta S. Russels & Taylor

Official Contact:

Address: 955-L, Phase II, Johar Town, Lahore

Phone: +92-42-5300941-3
Fax +92-42-5300944
Email: info@lahorecompost.com.pk
Website: www.lahorecompost.com.pk

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