THE PALM OIL FACTORY

PLANNING FOR OPERATION

What we are going to look at is a step by step consideration of all the factors involved namely ;

1. Investment
2. Justification
3. Project management
4. Project appraisal

INVESTMENT

A feasibility study would cover the following ;

1. The FFB available for manufacture
2. The cost of getting the FFB to the mill gate
3. The cost of manufacture
4. Investment cost of the Plant
5. Evacuation of the products and the markets
6. Approval of the relevent authorities
7. The proper phasing of the processing capacity

To ensure the project is efficiently planned and implemented, the following are recommended to be adhered to ;

1. Crop projection
2. Initial planning of required capacity
3. Site selections
4. Capital Expenditure Projections
5. Detailed engineering designs
6. Supervision of the construction
7. Training / Commissioning
8. Project Appraisal

INITIAL PLANNING

At this phase, we should consider actual requirement carefully ;

1. Area for mill's building and compound
2. Quarters for labours / staffs / executives
3. Roads and accessibility

CAPITAL EXPENDITURE PROJECTION

Cost for construction of a palm oil mill including ;

1. Engineering & Preliminaries
2. Site preparation
3. Reception
4. Sterilisation
5. Pressing
6. Threshing
7. Kernel
8. Clarification
9. Boiler
10. Power
11. Effluent & Waste recovery
12. Electrical
13. Water
14. Safety, Instrumentation & Piping
15. Oil storage
16. Foundations, Building etc
17. Housing

Source - Ir. Tan Bee Wah / The Palm Oil Mill Factory / Diploma in Palm Oil Milling Technology and Management (1997)