Dissertation on biodiesel

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J.D. Birla Institute
Department of Management
Dissertation
Title
Analysis of outbound logistics at Emami Agrotech Ltd., Haldia-
How to reduce turnaround time for drivers on site
Under the Supervision of
Name of the Mentor
Mr. Tapobrata Ray
Submitted by
Name of the Student- Vivek Kumar
Semester- VI (sixth)
Specialization- Marketing
Class Roll No. - 194
(Dissertation submitted in partial fulfillment of the requirements of the graduate degree, Bachelor of
Business Administration (Honours))
Signature of the student: Signature of the supervisor:

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To,
The Controller of Examinations
Jadavpur University,
Kolkata.
Respected Sir,
I, Vivek Kumar take full ownership of this work, titled “Analysis of
outbound logistics at Emami Agrotech Ltd., Haldia- How to reduce
turnaround time for drivers on site”.
All the references used are well acknowledged in the Bibliography.
This Term Paper is in partial fulfilment of the requirements of
Graduation Degree in Bachelors of Business Administration (Honours)
from Jadavpur University.
Yours Sincerely,
VIVEK KUMAR
Registration No: B2013111
Roll No: 194

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DECLARATION
I declare the following:
The word count of the dissertation is 10,643 words.
The material contained in this dissertation is the end result of my own
work. Due acknowledgement has been given in the bibliography and
references to all sources be they printed, electronic or personal.
I am aware that my dissertation may be submitted to a plagiarism
detection service where it will be stored in a database and compared
against work submitted from this institute or from any other institutions.
In the event that there is a high degree of similarity in content detected,
further investigation may lead to disciplinary actions including the
cancellation of my degree according to Jadavpur University rules and
regulations.
I declare that ethical issues have been considered, evaluated and
appropriately addressed in this research.
I agree to an entire electronic copy or sections of the dissertation to
being placed on the e-learning portal, if deemed appropriate, to allow
future students the opportunity to see examples of past dissertations and
to be able to print and download copies if they so desire.
NAME: VIVEK KUMAR
ROLL NO: 194, Registration No. –B2013111
Batch of 2013-16.
MENTOR: Mr. Tapobrata Ray

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ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me their
support to complete my dissertation. I express my feelings and gratitude
and sincere thanks to the director of our college, Dr. J. N.
Mukhopadhyaya.
I am deeply indebted to my mentor/supervisor at J. D. BIRLA
INSTITUTE (DEPARTMENT OF MANAGEMENT), Mr.
Tapobrata Ray for his unending support, direction and guidance
throughout the course of research of material for the project as well as
for the final compilation.
I would also like to express my heartfelt thanks to the coordinators and
staff of the Learning Resource Centre of our college, who assisted me
to avail the relevant books and allowed me to carry out the necessary
research for my project work.
The various websites from which information was acquired have proved
to be very helpful and valuable sources of information in my project.
I would further like to acknowledge my parents and friends for the
indispensable support to make this project a success.

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ABSTRACT
This paper documents the experience of redesigning in-plant logistics
operations of a large biodiesel complex in India. The complex under
reference is expected to have a traffic volume of one tanker per 30 to 60
minute till date.
The existing systems and procedures to receive and inspect a tanker,
load material, and complete commercial formalities are designed with a
target tanker turnaround time of 1.5 hours. However, in reality the actual
tanker turnaround time is significantly higher than the target turnaround
time.
The plant is located in a growing industrial area. Inordinate delay in
tanker turnaround time is a major demotivating factor for the tanker
companies to place their tankers with this complex. Consequently, there
is a significant variation between the planned and actual dispatch of
finished goods.
This investigation systematically analyzes the reasons for significant
departure in the tanker turnaround time. A tanker driver survey is used to
identify and prioritize areas of delay.

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As a consequence of this analysis, it is argued that deployment of
additional resources, optimizing the activity processing time, sub-
contracting some of the activities and extensive automation of the
process would only marginally improve the performance of the
turnaround time.
In order to improve the turnaround time substantially, there is a need to
redefine work, and fundamentally change the underlying process.
Accordingly, several initiatives are identified to ensure dramatic
reduction in the tanker turnaround time.

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INDEX
S.No CONTENTS Page No
1
1.1
1.2
1.3
1.4
1.5
2
2.1
2.2
2.3
3
4
4.1
4.2
INTRODUCTION
Supply chain management
Overview
About the internship
Research Objectives
About Emami Agrotech Ltd.
LITERATURE REVIEW
Key Players in the industry
The Biodiesel Reaction
The Biodiesel Processes
RESEARCH METHODOLOGY
DATA ANALYSIS
Findings
Recommendations
9-11
11-12
12
13
14-19
20-27
27
28-35
36-54
55-58
59-63
63-67
68-69

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5
6
7
CONCLUSION
ANNEXURE
BIBLIOGRAPHY
70
71-77
78-80

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1. INTRODUCTION
1.1 Supplychain management
A supply chain involves facilities, functions, and activities for producing
& delivering product or service from suppliers to customers. Supply
chains usually include four functional components: (1) demand
planning, (2) manufacturing-planning and scheduling, (3) supply
planning, and (4) transportation planning. Supply chain
management (SCM) spans all the movement and storage of raw
materials, work-in-process inventory, and finished goods from
point of origin to point of consumption, (Chopra & Meindl, 2003). SCM
draws heavily from the areas of operations management, logistics,
procurement, information technology and strives for an integrated
approach. The main objective of SCM is to minimize supply chain costs
while keeping a reasonable service level leading to customer
satisfaction/quality/on time delivery, etc., (Christopher, 2011).
Logistics
Logistics refers to the management of the flow of resources between the
point of origin and the point of consumption in order to meet some
requirements, for example, demand from customers or corporations. The
resources managed in logistics can include physical items, such as food,

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materials, equipment, liquids, and staff, as well as abstract items, such as
time, information, particles, and energy. The logistics of physical
items usually involves the integration of information flow, material
handling, production, packaging, inventory, transportation,
warehousing, and often security. The complexity of logistics can
be modelled, analyzed, visualized, and optimized by dedicated
simulation software. The minimization of the use of resources is a
common motivation. (Mentzer, 2004).
Outbound Logistics
Truck drivers play a very important role in the movement of material
associated with storing, transporting, and distributing goods to its
customers or distribution centers. One way to overcome this shortage is
making more effective use of the drivers’ time by reducing
the waiting times at loading and unloading sites. Reducing the waiting
times should also contribute to making the driver profession more
attractive. Also a more respectful treatment of the drivers at (un)loading
sites will increase the attractiveness of the driver profession.
Turnaround Time
Turnaround time is defined as the time taken by the transport vehicles to
complete the whole process of loading finished goods, starting from the
point of entry to its exit from the factory premises. In Nestle India,

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Nanjangud the break-up of the outbound logistics process (finished
goods) is shown in Figure 1. Turnaround time is probably the most
important key performance indicator in any logistics operation, as stated
in Bolstorff (2007). A short turnaround time is economically
advantageous, making the most efficient use of time and materials.
(Bowersox, Closs, & Cooper, 2002)
1.2 Overview
The logistics industry in India is evolving rapidly and it is the interplay
of infrastructure, technology and new types of service providers that will
define whether the industry is able to help its customers reduce their
logistics costs and provide effective services (which are also growing).
Changing government policies on taxation and regulation of service
providers are going to play an important role in this process.
Coordination across various government agencies requires approval
from multiple ministries and is a road block for multi modal transport in
India. At the firm level, the logistics focus is moving towards reducing
cycle times in order to add value to their customers. Consequently, better
tools and strategies are being sought by firms in order to enhance their
decision making. In this paper, I’m working on how we can reduce
the time spent by drivers on site which in turn will help us achieve
effectiveness and efficiency and hence I provide a perspective on these

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issues, outline some of the key challenges with the help of secondary
information, and describe some interesting initiatives that some firms &
industries are taking to compete through excellence in managing their
logistics.
1.3 About the internship
I did my internship at Emami Agrotech Ltd., Haldia, West Bengal. It is
one of the leading Biodiesel and Palm oil manufacturers in this zone. I
was designated the Biodiesel department over here and in particular the
logistics aspect of the Biodiesel department. I worked here as a logistics
supervisor and my broader work area mostly include the supervision of
tankers right from when it enters the site; get loaded at the gantry point
and leaves for the destination. My basic responsibility at the workplace
was to see what is the time taken in each and every process and how we
can reduce the total turnaround of the drivers on site so that it inculcates
efficiency in loading of Biodiesel.

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1.4 ResearchObjectives
The objective is twofold:
• Offer a number of concrete measures that could be taken to reduce the
time spent by a driver on a loading or unloading site. This can be
achieved by removing a number of constraints during the loading and
unloading processes, by adapting the lay-out of the site or by making use
of more adequate equipment.
• Suggest a number of actions that could be taken to improve the
treatment of the driver at loading and unloading sites.
This will ultimately result in improved efficiency, which will be of
benefit to both the sites and the transport companies, as well as in
making the profession of driver more attractive.
It goes without saying that the implementation of recommended or
suggested actions should in no way jeopardize the safety of drivers and
site personnel but to the contrary should even enhance the safety level.

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1.5 Emami AgrotechLtd.
Emami Agrotech Limited is a part of Emami group that started as a
manufacturer of toiletry and cosmetics in the year 1974 and
progressively forayed into a variety of businesses - personal and health
care products, health care services, writing materials, paper
manufacturing, retail initiative and presently into bio-diesel
manufacturing. The project activity involves production of bio-diesel in
a 300 tonnes per day (TPD) bio-diesel production facility of EBL
located at Haldia, West Bengal, India. The raw material proposed to be
used for the project activity primarily includes waste vegetable oils/fats
like used palm fatty acid distillate (PFAD), residue of refined, bleached
and deodorized(RBD) palm oil and jatropha oil for which dedicated
plantations are being developed by the project proponent as feedstock
for the project activity. Bio-diesel produced from the facility, will be
used either in pure or in blended form for both static and
dynamic purposes. This will in turn replace equivalent liquid fossil fuel
petro-diesel that would otherwise be continued to be used in
transportation and industrial sectors. Replacement of petro-diesel will in
turn reduce the GHG emissions associated with the combustion of the
fossil fuel. Thus the project activity will result in reduction of a quantum
of 127121 tonnes of CO2 per annum.

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Emami Ltd.
Emami Limited (Emami) was incorporated in 1983 with the name AMP
Udyog Viniyog Ltd. It converted into a public limited company under
the name Emami with effect from April 1, 1995. The company is
promoted by Kolkata-based industrialists, Mr. R.S. Agarwal and Mr.
R.S. Goenka. It is the flagship company of the Emami group, and a
leading player in the Indian fast-moving consumer goods space.
Key Highlights
Strong brand presence with significant market share Emami has over 30
brands under its portfolio. The company’s products span various income
groups in both urban and rural India. Among Emami’s brands,
“Boroplus” holds ~74% market share and is the largest selling antiseptic
cream, not only in India, but also in Ukraine, Russia and Nepal. Other
brands include “Himani Fast Relief”, which holds ~13% market share in
India and “Fair & Handsome”, which holds ~84%. “Zandu Balm” holds
~61% market share, “Himani Sona Chandi Chyawanprash” ~15% and
“Boroplus” prickly heat powder holds ~17% in their respective
segments. New products, variants launched in FY10 The company
launched 2 new products in FY10 — Boroplus winter lotion and Emami
Malai Kesar soap — and a variant of the “Navratna Extra Thanda” hair
oil. The company also test-marketed the “Healthy & Fair” range of baby
products (baby oil, baby powder and baby soap) and “Emami 5-in-1”

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shampoo. It launched “Emami Pure Skin” glycerine soap and
“Vasocare” petroleum jelly. The company also rejuvenated its Zandu
Balm product with innovative anti-spurious packaging and a fresh
advertisement campaign. Wide distribution network Emami’s products
are available in 425,000 Indian retail outlets. The company has 2,800
distributors, 1,500 sub-distributors, 30 depots and 6 regional sales
offices. They are present in over 2.6 million Indian retail outlets.
Internationally, its products are available in 65 countries with strong
base in Middle East, CIS and SAARC countries. The international
business contributes ~14% to the total revenue.
Key Risks
• Increasing costs of raw material, transport and storage
• Competitive market conditions and new entrants to the market
• Inflationary pressures and other factors affecting demand for products
Background
Emami, the flagship company of the Emami group, is a leading player in
the personal and healthcare consumer products industry in India. The
company is engaged in manufacturing and marketing of health, beauty
and personal care products that are based entirely on Ayurvedic
formulations. The company has over 30 brands under its portfolio. Its
product categories consist of hair care, skin creams, soaps and lotions,

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talcum powder and Ayurvedic healthcare products, with brands such as
“Navratna”, “Boroplus”, “Fair & Handsome”, “Sona Chandi
Chyawanprash”, “Zandu Balm”, “Himani Fast Relief” and “Emami
Malai Kesar Cold Cream”, etc, in the company’s stable. The company
has manufacturing plants at Kolkata (West Bengal), Guwahati (Assam),
Pantnagar (Uttaranchal), Vapi (Gujarat), Silvassa (Dadra & Nagar
Haveli) and Talasari (Maharashtra). The company has an installed
capacity of manufacturing 11,800 tonnes of cosmetics and toiletries,
47,129 tonnes of Ayurvedic medicines and 185 million Ayurvedic
tablets/ pills per annum.
FinancialProfile
Double-digit growth in top-line, operating margin up significantly
Emami’s top-line increased by 35% to Rs 9.7 billion (bn) in FY10, from
Rs 7.1 bn in FY09. Increase in revenue was primarily driven by volume
growth across products, coupled with growth in distribution.
Operating margin increased to 25.5% from 20.4% in FY09 — or 510
basis points — due to lower input cost and the company’s product mix
and value engineering initiatives.
PAT, however, fell to Rs 676 million (mn) from Rs 819 mn in FY09,
due to excess amortisation of goodwill consequent to the scheme of
arrangement with Zandu Pharmaceuticals.

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IndustryProfile
FMCG
Despite the global economic slowdown experienced over the last year,
India's Fast Moving Consumer Goods (FMCG) sector has continued to
show robust growth. The FMCG segment includes products like soaps,
detergents, oral care, hair care and skin care products. India's FMCG
market can be divided into two segments - urban and rural. The urban
segment is characterized by high penetration levels and high spending
propensity of the urban resident. The rural economy is largely agrarian -
directly or indirectly dependent on agriculture as a means of livelihood
with relatively lower levels of penetration and a large unorganized
sector. In the recent past the government has focused upon development
in the rural sector. This includes investments in development of
infrastructure and schemes for job creation (such as NREGA). This is
resulting in a rise in disposable incomes levels in the rural economy and
consequently in demand for FMCGs. The demand is increasing by 18%
in the rural areas and by 11% in urban areas. Over 300 million people
are expected to move up from the category of rural poor to rural lower
middle class between 2005 and 2025 and rural consumption levels are
expected to rise to the current levels in urban India by 2017. The FMCG
environment in India and overseas is competition intensive and
companies need to focus on branding, product development, distribution
and innovation to ensure their survival. Product innovations help to gain

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market share while advertising and sales promotions create visibility for
the product.

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2. LITERATURE REVIEW
A literature review is an analysis of existing research which is relevant
to a particular field or topic. It explains and justifies how your
investigation may help answer some of the questions or gaps in this area
of research. A literature review is not a straightforward summary and it
is not a chronological description of what was discovered in your field.
Importance of writing a literature review
New discoveries don't materialize out of nowhere they build upon the
findings of previous experiments and investigations. A literature review
shows how the investigation you are conducting fits with what has gone
before and puts it into context. A literature review gives an overview of
the field of inquiry.
A literature review demonstrates to your reader that you are able to:
• Understand and critically analyze the background research
• Select and source the information that is necessary to develop a
context for your research
• Shows how your investigation relates to previous research
• Reveals the contribution that your investigation makes to this field
(fills a gap, or builds on existing research, for instance)
• Provides evidence that may help explain your findings later.

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2.1 For the purpose of this study articles from various journals and by
varied authors have been reviewed.
1. Over the past three decades the desires to establish national energy
self-reliance and to develop alternatives to finite fossil fuel resources
have resulted in the development of fuel technologies that are based on
the use of renewable agriculture based materials as feed stocks. In the
case of renewable fuels for compression ignition (diesel) engines, the
majority of efforts to date have focused on biodiesel, which consists of
the simple alkyl esters of the fatty acids found in agricultural
acylglycerol based fats and oils. Biodiesel has been shown to give
engine performance generally comparable to that of conventional diesel
fuel while reducing engine emissions of particulates, hydrocarbons and
carbon monoxide (Graboski and McCormick, 1998).
2. Information on the production, quality specifications, performance
and emissions properties of biodiesel has accumulated steadily over the
past three decades. In addition to extensive laboratory testing, millions
of miles have been traveled by test and demonstration vehicles running
on biodiesel. Announcements of its adoption by municipalities, school
districts, businesses, governmental agencies, entrepreneurs, and show
business entertainers appear on a regular basis. Thus, biodiesel
technology is making the transition from a research endeavor to a
worldwide commercial enterprise. In support of this increasing

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consumption there have been substantial increases in biodiesel
production in recent years, a trend that is expected to continue. Europe
and the US are the leading biodiesel producers at this time, with
European production in 2003 estimated at 1.7 · 109 l (450 million gal)
(European Biodiesel Board, 2004), and US production in 2004 estimated
at 114 million l (30 million gal) (McCoy, 2005).
3.A supply chain involves facilities, functions, and activities for
producing & delivering product or service from suppliers to
customers. Supply chains usually include four functional
components: (1) demand planning, (2) manufacturing-planning and
scheduling, (3) supply planning, and (4) transportation planning.
Supply chain management (SCM) spans all the movement and
storage of raw materials, work-in-process inventory, and finished goods
from point of origin to point of consumption, (Chopra & Meindl, 2003).
SCM draws heavily from the areas of operations management, logistics,
procurement, information technology and strives for an integrated
approach. The main objective of SCM is to minimize supply chain costs
while keeping a reasonable service level leading to customer
satisfaction/quality/on time delivery, etc., (Christopher, 2011).
4.Logistics refers to the management of the flow of resources between
the point of origin and the point of consumption in order to meet some

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requirements, for example, demand from customers or corporations. The
resources managed in logistics can include physical items, such as food,
materials, equipment, liquids, and staff, as well as abstract items, such as
time, information, particles, and energy. The logistics of physical
items usually involves the integration of information flow, material
handling, production, packaging, inventory, transportation,
warehousing, and often security. The complexity of logistics can
be modelled, analyzed, visualized, and optimized by dedicated
simulation software. The minimization of the use of resources is a
common motivation. (Mentzer, 2004).
5. Turnaround time is defined as the time taken by the transport vehicles
to complete the whole process of loading finished goods, starting from
the point of entry to its exit from the factory premises. Turnaround time
is probably the most important key performance indicator in any
logistics operation, as stated in Bolstorff (2007). A short turnaround time
is economically advantageous, making the most efficient use of time and
materials. (Bowersox, Closs, & Cooper, 2002)
6. The term supply chain management (SCM) was introduced in the
early 1980’s and subsequently attracted a great deal of attention. The
council of supply chain management professionals defines supply chain

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management as encompassing, the planning and management of all
activities involved in sourcing and procurement, conversion and all
logistics management activities. According to Gunasekaran et al. (2004),
supply chain management has been a major component of competitive
strategies to enhance organizational productivity and profitability.
Supply chain management includes coordination and collaboration with
channel partners, which could be suppliers, intermediaries, third party
service providers, customers (Lambert et. al., 2006).
7. Within the organization, supply chain management refers to a wide
range of functional areas. These include supply chain management-
related such as inbound and outbound transportation, warehousing, and
inventory control. Sourcing, procurement, and supply management also
fall under the supply chain umbrella. Forecasting, production planning
and scheduling, order processing and customer service all are part of the
process as well. It also embodies the information systems necessary to
monitor these activities. Simply stated, ‘‘the supply chain encompasses
all of those activities associated with moving goods from the raw
materials stage through to the end user’’ (Zigiaris, 2000).
8. Logistics management is the governance of supply chain functions.
Logistics management activities typically include inbound and outbound
transportation management, fleet management, warehousing, materials

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handling, order fulfillment, logistics network design, inventory
management, supply/demand planning, and management of third party
logistics services providers. To various degrees, the logistics
function also includes customer service, sourcing and procurement,
production planning and scheduling, packaging and assembly. Logistics
management is part of all levels of planning and execution: strategic,
operational and tactical. It is an integrating function that coordinates all
logistics activities. It also integrates logistics activities with other
functions including marketing, sales manufacturing, finance, and
information technology. The definition includes the flow of materials
and services in the manufacturing and services sectors. (Lambert et. al.,
2006)
9.The logistics as well as supply chain network design is and has been a
favourite topic of study among the supply chain research community.
Since the emergence of supply chain management (SCM) discipline in
1980s many have actively studied and rigorously researched this topic
and many facets of the field have been showcased in different hues and
cries. Since this paper discusses and proposes the design of an
innovative hybrid and flexible outbound logistics network for a
multi-objective, multi-stage (or multi-echelon), deterministic, single
period, single country, and strategic decision making problem in a
manufacturing supply chain, we consider here only the related literature

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which fall under this purview. Researchers in the past have studied
OLND in supply chains under various names and terminology. To quote
them, we find in the literature terms like ‘supply chain network design
(SCND)’, ‘production-distribution network design (PDND)’
‘production-distribution system design (PDSD)’, ‘logistics network
design (LND)’, ‘outbound supply chain network design (OSCND)’,
‘supply chain configuration (SCC)’, ‘supply chain design (SCD)’, etc.,
where majority of these connote the similar meaning and concept of
planning and designing the physical structure of downstream supply
chain, with a significant variation in case of SCC and SCD which do
consider the entire gamut of supply chains i.e. from suppliers to
customers. Distribution, in plain terms, refers to the steps taken to move
and store a product from the manufacturer stage to a customer stage in
the supply chain. Distribution is a key driver of the overall profitability
of a firm because it affects both the supply chain cost and the customer
experience directly (Chopra et al. 2008).
10.Chandra and Sastry (2004) have pointed towards two key areas that
require attention in managing the logistics chains across the Indian
business sectors – cost and reliable value add services. Logistics costs
(i.e., inventory holding, transportation, warehousing, packaging, losses
and related administration costs) have been estimated at 13-14 per cent
of Indian GDP which is higher than the 8 per cent of USA’s and lower
than the 21 per cent of China’s GDP (Sanyal, 2006a). Service reliability

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of the logistics industry in emerging markets, like India, has been
referred to as slow and requiring high engagement time of the
customers, thereby, incurring high indirect variable costs (Dobberstein
et. al, 2005).
2.1 Players in the biodiesel market in India
1. Shirke Energy Private Limited, Pune, Maharashtra
2. Universal Biofuels Private Limited, Hyderabad
3. Biodiesel Technologies, Kolkata
4. The Southern Online Biotechnologies Ltd., Hyderabad
5. Praj Industries Limited, Pune
6. Emami Agrotech Limited, Haldia, West Bengal
7. Bharat Renewable Energy Limited, Lucknow
8. Chemcel Biotech Limited, Vijayawada, Andhra Pradesh

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2.2 The BiodieselReaction
For the reasons stated above, vegetable oil is transformed into biodiesel.
The components that support combustion in the oil are the basis for
biodiesel. These components, called fatty acids, have different properties
that can be characterized by the number of hydrogen and carbon atoms
and the way these atoms are bonded together.
Table 1 shows the melting point, boiling point, and names of the most
common fatty acids. It is important to note that vegetables oils are
usually composed of several fatty acids. This means that the properties
of an oil will be a mixture of the properties of the fatty acids it contains.
It follows that the biodiesel made from the oil will also exhibit a mixture
of these properties.

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Common vegetable oils, along with the percentage of each type of fatty
acid, are shown in Table 2. Also affected by the different molecule
arrangements are ignition quality, low temperature viscosity, NOx
emissions and the stability of the fuel. Fatty acids with one double bond
(:1) are considered the best overall choice for biodiesel.
3
The yellow grease listed at the top of Table 2 refers to most waste
vegetable oil available at restaurants. The class “yellow” is an industry
rating based on the quality of the grease. What is important to note in
this table is that the fatty acid composition of yellow grease is estimated.

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The actual composition of yellow grease will reflect the source of the
original oil.
The basic biodiesel reaction is shown in Figure 1. This reaction is
known as transesterification (do-it-yourselfers often call it the one-step
process). The triglyceride is vegetable oil. R1, R2 and R3 represent any
of the fatty acids listed in Table 1. Reacting one part Vegetable oil with
three parts Methanol gives three parts Methyl Esters (Biodiesel) and one

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part Glycerol. In practical terms, the volume of Biodiesel will be equal
to the input volume of vegetable oil.
Figure 1. Transesterification Reaction.
Notice in Figure 1 the addition of a catalyst. In theory, the catalyst is not
consumed by the reaction and is removed in the glycerol and the wash
water.
1.1 High Free Fatty Acid Grease
In the case of using waste vegetable oil (yellow grease) as a feedstock,
free fatty acids (FFA’s) may pose a problem. A free fatty acid is one that
has already separated from the glycerol molecule. This is usually the
result of the oil breaking down after many cycles of use. FFA’s create 3
major problems.
- More catalyst will need to be used leading to higher cost

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- Soap (fatty acid salt) is formed, making washing the finished
product more difficult.
- Water is formed which will retard the main reaction
- The FFA’s are not converted into fuel, reducing the yield
Figure 2 shows the reaction of FFA’s and the catalyst NaOH.
Figure 2. Formation of Soap.
When the oil has less then 2.5% FFA, the problems listed previously are
negligible by using the single step (transesterification) only. Others have
reported good results up to 4% FFA. 2.2 Treating High FFA Waste

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Vegetable Oil
There are several methods to treat high FFA waste vegetable oils in
small-scale systems. The easiest is to mix the high FFA oil with low
FFA oil. This will work for an occasional high FFA batch. Other options
require esterification (two-stage process) or intentionally make soap.
These options are:
- Add catalyst and water to change FFA to soap, and remove the soap
- Add acid and a large percentage of Methanol to covert FFA to
usable product
- Add acid, heat and a smaller percentage of Methanol to covert FFA
to a usable product
Adding catalyst and water to high FFA oil is the easiest solution, but it
also has some disadvantages. The percentage of feedstock that will be
lost is higher then the percentage FFA. 100 gallons of waste vegetable
oil will loose more than 10 gallons if it is 10% FFA. When this
procedure is carried out in the reaction tank, the resulting water and soap
created will collect above and below the oil. I found it time consuming
to skim the soap off of the top of the oil.
Adding acid and large quantities of methanol to the oil is the most
common method among small-scale producers. The disadvantage to this
method besides time is the cost of the methanol. For 10% FFA, over
seven gallons of methanol would be needed for the first stage to treat 40

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gallons of oil. This is in addition to the eight gallons required for the
second stage. A methanol recovery system could returnthree gallons
from the first stage and 1½ gallon from the second, but this requires
additional time and energy. This option requires an extra tank.
6
Adding acid with high heat (90 degree C) and smaller quantities of
Methanol is not widely used. WMRC is currently developing a bench
scale process to test the feasibility.
1.2 Observations on obtaining waste vegetable oil
Waste vegetable oil (WVO) can be acquired from grease recyclers or
directly from grease containers behind restaurants. Although it seems
that free (from restaurant grease containers) as opposed to $1 per gallon
(Dec, 2005 prices from grease recyclers) is a better deal, there are other
facets to take into account.
When obtaining grease from containers, note that Solids and impurities
will collect on the top and bottom of the oil. Better quality oil can be
found in the middle. Generally the clearer the oil, the better the quality.
Each time the center oil is removed, the concentration of contaminants
increases. Eventually, there will be only low quality oil in the container.
If this happens, it is best to wait until the grease recycler has dumped the
container before collecting oil again. Using this method, WMRC has not
had issues finding grease with FFA less then 2.5%. It is also important to

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note that manual grease collection is a challenge in the winter. The cold
weather will solidify the grease.
Grease recyclers deal in large volumes of oil. Most will only sell
tankerloads (9,000 gallons) and not 55 gallons to individual customers.
The advantage of processed WVO is that it is free of solids and water. It
is also kept heated so that it is easy to transfer from one container to
another. Processed WVO has a surprisingly high percentage FFA.
Yellow grease from local recyclers (central Illinois) runs in the 8-15%
range in the winter and 12-20% in the summer. The rise of percentage
FFA in the peak summer months compared to the winter is attributed to
constant heat from the summer weather. Because processed WVO has an
FFA above 2.5%, it will require additional processing as discussed in the
next section.

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2.3. BiodieselProcesses
4.1 Process flow chart
Implementing the previously described processes results in the process
flow shown in Figure 3.

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Figure 3. Process flow for Biodiesel process.
This process has two separate starting points. If vegetable oils can be
obtained that are below 2.5% FFA, the esterification step is not
necessary.
4.2 Process Details
The processes described here are used by WMRC in a controlled lab
environment. We strongly recommend that you read and understand
handling requirements of all chemicals used in this report. Take time to
do additional research and obtain a thorough understanding of the
processes involved before proceeding.
4.2.1 Heating of Oil
In order to speed up the reaction, the oil must be heated. The ideal
temperature range is 120deg F to 140deg F. The reaction can take days
at room temperature and will be inhibited above 140deg F. Heating with
electric elements is usually the easiest way to bring the oil up to
temperature. Equation 1 will give an estimate for the amount of time it
takes to heat the oil.

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It is important to stir the oil as it is heated. This will result in a more
even heating and reduce the temperature of oil exposed directly to the
heating element.
4.2.2 Titration
In order to determine the percent of FFA in the oil, a process called
titration is used. The vegetable oil is first mixed with methanol. Next, a
mixture of Sodium Hydroxide (NaOH) and water is added until all of the
FFA has been reacted. This is confirmed by checking the pH of the
mixture. A pH of about 9 signifies all of the FFA has been reacted.
Virgin vegetable oil from the same feed stock will usually titrate at
approximately the same level, so checking every batch is not necessary.
Waste Vegetable oil feed stocks will vary greatly. Every batch must be
titrated.
The following items are needed to perform an accurate titration.
- Two 50mL flasks
- One 5mL graduated pipette
- A 1mL dropper
- A 10mL dropper
- A mixture of NaOH and water in 0.1% concentration
- pH solution and color chart
The NaOH water mixture can be prepared by adding 1 gram of NaOH to
1000ml distilled water. The mixture will be more accurate if it is first

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made as a 1% solution (10grams NaOH to 1000ml water). Next, add
100mL of the 1% solution to 900ml of distilled water. This will make a
0.1% NaOH solution.
The process for titration is as follows:
1) Place 10mL of Methanol in a 50ml flask
2) Add 1mL of vegetable oil (mix the oil thoroughly prior to drawing
1ml)
3) Mix the oil with the Methanol using the squirting action of the
dropper
4) Add the ph indicator solution (usually 3 drops, check instructions)
5) Place 15ml 0.1% NaOH (know as titrant) solution in a 50ml flask
6) Draw exactly 5ml of the NaOH solution into the graduated pipette
7) Add the 0.1% NaOH to the methanol/oil mixture one drop at a
time. Mix the solution using a swirling action between the drops.
Using the eyedropper to mix the solution may help if the oil forms
drops in the bottom of the flask.
8) Continue to add 0.1% NaOH until a pH of 9 (blue-green color) is
reached. This may require more than 5ml. Refill the pipette and
continue. Note the amount in ml that was required.
9) Look up the corresponding amount of NaOH required for the entire
batch in Table 3. Multiply the amount by the number of gallons of
oil to obtain the required amounts.

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4.2.3 Mixing of Methanol and Catalyst
The purpose of mixing methanol and the catalyst (NaOH) is to react the
two substances to form Methoxide. The amount of Methanol used
should be 20% of the volume of the oil. Methanol and NaOH are
dangerous chemicals by themselves, with Methoxide even more so.
None of these substances should ever touch skin. Vapors should NOT
be inhaled. Gloves, goggles and ventilation are required at ALL TIMES
when working with these substances.

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NaOH does not readily dissolve into Methanol. It is best to turn on the
mixer to begin agitating the Methanol and slowly pour the NaOH in.
When particles of NaOH cannot be seen, the Methoxide is ready to be
added to the oil. This can usually be achieved in 20 –30 minutes.
4.2.4 Draining of Glycerol
After the transesterification reaction, one must wait for the glycerol to
settle to the bottom of the container. This happens because Glycerol is
heavier then biodiesel. The settling will begin immediately, but the
mixture should be left a minimum of eight hours (preferably 12) to make
sure all of the Glycerol has settled out. The Glycerol volume should be
approximately 20% of the original oil volume.
Figure 4 and Figure 5 show the difference in viscosity and color between
the two liquids. The object is to remove only the Glycerol and stop when
the biodiesel is reached. Glycerol looks very dark compared to the
yellow biodiesel. The viscosity difference is large enough between the
two liquids that the difference in flow from the drain can be seen.

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4.2.5 Washing of Fuel
The washing of raw biodiesel fuel is one of the most discussed subjects
among do it yourselfers. The purpose is to wash out the remnants of the
catalyst and other impurities. There are three main methods:
- Water wash only (a misting of water over the fuel, draining water
off the bottom)
- Air bubble wash (slow bubbling of air through the fuel)
- Air/water bubble wash (with water in the bottom of the tank,
bubbling air through water and then the fuel)
Which method works the best is dependent on the quality of the fuel.
The method used at WMRC for all fuel is a combination of water

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washing and air bubble washing. Water is misted above the fuel at a rate
of 5 gallons/hour. (The rate really depends on the diameter of the tank.
The water should not break the surface of the biodiesel). The amount of
wash water should equal the amount of oil, and can be drained
throughout the washing process.
After the water is drained, the air washing process can start. At this
point, the biodiesel is usually a pale yellow color. Air should be bubbled
through the biodiesel mixture for approximately 8 hours. The bubbling
should be just enough to agitate the biodiesel surface. A final drain of
accumulated contaminants is done immediately after the air bubble wash
is finished. The fuel is now ready for use.
4.3 Transesterification (biodiesel reaction for oils < 2.5%FFA)
The transesterification process can be summarized in the following
steps:
1) Heat oil to 130deg F
2) Titrate the oil (determine how much sodium hydroxide to add)
3) Mix the sodium hydroxide and methanol to make methoxide
4) Mix the methoxide with the oil
5) Drain glycerol
6) Wash biodiesel

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A detailed process and timeline are shown in figure 6.

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4.4 Esterification of (pretreatment where FFA > 2.5%)
Esterification is done as a pretreatment step to the transesterification
procedure when the FFA content is higher then 2.5%. In practice, it is a
bit more complicated to implement then transesterification. A byproduct
of the process is water, which impedes the reaction. As there is more
FFA in the oil, more methanol percentage wise must be added to
compensate for the water. To overcome this, industrial producers use
counter current reactors that enable a continuous flow of high FFA oil in
and water out.
Esterification is not covered in this document because it has not been
thoroughly tested by WMRC.
5.0 Materials and Costs
5.1 Vegetable Oil Feedstocks
Virgin vegetable oils are the main feedstock for most biodiesel plants in
the U.S. Virgin oil varies little in FFA from batch to batch, so the
process can be repeated without change. Table 4 shows the amount of oil
that can be expected from different types of oilseed plants along with
estimated costs
4
. This is not an inclusive list, but contains the main
oilseed crops that can be grown in the Midwest U.S. region. For
reference, processed waste vegetable oil sells for $1 per gallon.

47 | P a g e
It is important to note that the last two columns of Table 4 show
different costs per gallon depending on the type of extraction used.
Columns 3 and 11 represent cold pressing, which is the normal process
used in small-scale operations. It is essentially a manual process where
the oilseed is crushed, separating the oil and expelling the solid as a
press cake. Column 3 shows that this method removes approximately
60% in most instances. The amount of oil removed is dependent on the
shell on the seed.
Hexane extraction is the method used by large-scale operations
1
. Hexane
is a hazardous air pollutant and also very flammable. It can be found in
gasoline. The facilities that use it for oil extraction have recovery
methods that keep it from escaping into the atmosphere. This method is
not considered to be adaptable to home use.
Comparison of prices in columns 11 and 12 to current gas prices would
indicate that biodiesel from local oilseed crops is not feasible. However,
these prices do not take into account the sale of the meal. Soybean meal
does have a market in Illinois, and when this is subtracted from the cost
of soybeans the price per gallon is a more reasonable $1.61. Table 5
shows the cost breakdown for soybeans, based on 7.6 lbs of oil per
gallon.

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Other meals are valuable as livestock feed. This is particularly true with
cold pressed meals. The remaining oil contains nutrients and also
reduces the dust during handling.
5.2 Cost of Reactants
The costs of Sodium Hydroxide and Methanol vary greatly according to
purchase quantities and location of purchase. For this reason, Tables 6
and 7 have been created to quickly determine the cost of a batch of
biodiesel. All values are based on one gallon of oil.
Example 100 gallons yellow grease
$1/gallon =>
Titration 2mL, NaOH $4/lb = 0.18 * 100 =>
Methanol $3.50/gal = 0.70 * 100 =>
Total =>

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5.3 Glycerol
Glycerol is a byproduct of the biodiesel reaction. Although it is well
known that glycerol is used in soap, medicines and cosmetics, the
glycerol we are dealing with is not of the proper purity. Up to 20% is
methanol and it will contain other impurities such as lye
2
. The best way
to dispose of the glycerol is through a wastewater treatment plant. Any
hauler with a dumping permit (septic tank cleaners) should be able to
take the glycerol. Fees are very reasonable for this service, but will vary
over a wide range due to distance and ease of loading at the customer
site.

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A complete transesterification biodiesel system is shown in Figure 7. All
tanks in this system can be constructed from polyethylene or stainless
steel. Steel is also an option for all except the catalyst reaction tank.
Usually polyethylene is used because of the low cost and availability.
Starting from the left, the first tank is the oil storage tank. The sizing of
this tank is dependent on the amount of oil that will be received at one
time. If oil is purchased by the tankerload, sizes up to 10,000 gallons
may be required. Another option when dealing with small quantities is to
store the oil in 55-gallon drums as needed instead of using a permanent
tank.
The second tank from the left is the reaction tank. This is most important
part of the system. The reaction tank requires either a mixer or pump to
agitate the mixture when a reaction is taking place. It also may require
heating, depending on if heating is done in the oil storage tank.
Polyethylene will stand the maximum 140 degrees F temperature,
however extreme care must be taken when using a heating element.
Steel or Stainless is preferred for this component.
The sizing of the reaction tank is estimated at 4.5 times the daily fuel
usage. This comes from two 8 hours days to make the fuel plus one day
buffer. The extra 1.5 times is to leave extra room for the mixing and the
wash water. Not allowing enough room for the wash water would
require the water to be drained often.

53 | P a g e
The catalyst reaction vessel is the smallest in the system. It is also shown
elevated above the top of the biodiesel reaction tank. It is important to
locate the catalyst tank higher to avoid the contents of the main reaction
tank from contaminating it. Some systems mount the catalyst tank lower
and use a check valve. This works to a point, but many times the valve
will stick due to catalyst residue. It is also harder to control the flow with
the check valve setup.
Sizing of the catalyst-mixing tank is 25% of the main reaction tank or
40% of the amount of oil used. The catalyst tank is filled to 20% of the
volume oil used, but because the mixture is hazardous it is best to double
the size to avoid spillage or splashing. A mixer must be used in this tank.
The fuel storage tank can be any size. It is best to locate it away from the
other equipment so that is will not be accidentally damaged.
The glycerol storage tank is not required, but is the best solution when
the glycerol is to be picked up by a waste hauler. The tank should be
sized according to what the waste hauler can move in a load. The
charges are generally the same regardless of how full the tanker is.
Location should be determined by ease of access as haulers charge by
the amount of time to load the tanker.

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6.0 Safety and Environment
Biodiesel producers are regulated by two entities: OSHA and the
environmental protection agency. OSHA’s concern is with the
environment for the workers. It considers biodiesel production facilities
to be chemical plants. The handling/storage of class A flammable liquids
(methanol) can be found under section 29.1910.106. Some of the rules
that may apply are:
- Methanol storage containers must be metal, grounded, use masonry
supports and must not spill contents if connectors burn through
- Space required around tanks for firefighting access - Explosion
proof electrical wiring - No other operations in the room with the
equipment. The environmental protection agency (EPA) deals only with
the protection of the environment. In the case of biodiesel, most of the
concern is about containment from spills of the various fluids.

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3. RESEARCHMETHODOLOGY
3.1 Introduction to Research Methodology
The design of any study begins with the selection of a topic and a
research methodology. The word “research” is used to describe a
number of similar and often overlapping activities involving a search for
information. It is basically gathering and analyzing a body of
information or data and extracting new meaning from it or developing
unique solutions to problems or cases. The word “methodology” can
properly refer to the theoretical analysis of methods appropriate to a
field of study or to the body of methods and principles or rules from
which specific methods or procedures may be derived to understand
different situations within scope of a particular discipline. Therefore,
research methodology refers to the way in which the data are collected
for the research project.
My Research data includes qualitative and quantitative data. In this
research paper, quantitative data , primary data and secondary data have
been involved.
QUANTITATIVE DATA- Information that can be counted or
expressed numerically. This type of data is often collected in
experiments, manipulated and statistically analyzed. Quantitative data

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can be represented visually in graphs and charts. The behaviour of
consumers is recorded through it.
QUALITATIVE DATA - Qualitative data is extremely varied in
nature. It includes virtually any information that can be captured that is
not numerical in nature
3.2 Data Collection Methods
Depending on the nature of the information to be gathered, different
instruments are used to conduct the assessment: forms for gathering data
from official sources such as police or school records;
surveys/interviews to gather information from youth, community
residents, and others; and focus groups to elicit free-flowing
perspectives.
PRIMARY DATA - Primary data is data gathered for the first time by
the researcher. It is collected to address the specific issue or problem
under study. These data can be gathered internally or externally though
surveys, observations, experiments, and simulation.
SECONDARY DATA-Secondary data is the data that have been
already collected by and readily available from other sources. Such data

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are cheaper and more quickly obtainable than the primary data and also
may be available when primary data cannot be obtained at all.
SAMPLING
A process used in statistical analysis in which a predetermined number
of observations will be taken from a larger population. The methodology
used to sample from a larger population will depend on the type of
analysis being performed, but will include simple random sampling,
systematic sampling and observational sampling.
TOOLS
Tools used in Research Methodology are as follows:
Questionnaire
It is a set of printed or written questions with a choice of answers,
devised for the purposes of a survey or statistical study.
Pie Diagram
A pie chart (or a circle graph) is a circular chart divided into sectors,
illustrating numerical proportion. In a pie chart, the arc length of each
sector is proportional to the quantity it represents. Pie charts are very
widely used in the business world and the mass media. Pie chart was
used to find the percentage of different factors and other asked
questions.

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Column Chart
The column chart consists of a group of equi-spaced rectangular bars,
one for each category of given statistical data. The columns, starting
from a common base line, must be of equal width and the length
represents the values of statistical data. The column chart was used to
show the frequency of crates of different soft drink brands kept by
retailers.

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4. DATA ANALYSIS
PDCA Cycle
PDCA Cycle is the core of the whole analysis leading to the execution of
the project involving reduction of total turn-around time for outbound
logistics (finished goods only). The concept of (Plan, Do, Check, Act)
PDCA is based on the scientific method, as developed from the work of
Francis Bacon. The scientific method can be written as “hypothesis”–
”experiment”–”evaluation” or plan, do and check. The father of
Statistical Quality Control Walter Shewhart described manufacture
under “control”—under statistical control—as a three step process of
specification, production, and inspection. He also specifically
related this to the scientific method of hypothesis, experiment, and
evaluation. Shewhart (1980) says that the statistician “must help to
change the demand [for goods] by showing how to close up the
tolerance range and to improve the quality of goods.” Clearly, Shewhart
intended the analyst to take action based on the conclusions of the
evaluation. PDCA was made popular by Dr W. Edwards Deming,
who is considered by many to be the father of modern quality control;
however, he always referred to it as the “Shewhart cycle”. Later in
Deming’s career, he modified PDCA to “Plan, Do, Study, Act” (PDSA)
because he felt that “check” emphasized inspection over analysis.
Deming preferred plan, do, study, and act because “study” has
connotations in English closer to Shewhart’s intent than “check”.

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Rate of change, that is, rate of improvement, is a key competitive factor
in today’s world. PDCA allows for major “jumps” in performance
(“breakthroughs” often desired in a Western approach), as well as
Kaizen (frequent small improvements). In the United States a PDCA
approach is usually associated with a sizable project involving numerous
people’s time, and thus managers want to see large “breakthrough”
improvements to justify the effort expended. However, the scientific
method and PDCA apply to all sorts of projects and improvement
activities.
The steps taken to implement PDCA cycle are shown in Figure 2:

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Plan
The objective of the process was to analyze the entire data for a suitable
sample size of tankers and suggest practical ways of implementing the
recommendations in phases before the start of the loading.
Do
A total of 50 tankers were taken for a period of ten days. The average
number of tankers entering the premises to be loaded in a day was 6,
with a deviation of five tankers. With the help of statistical tools, we
determined the sample size to be five tankers per day (with 95%
confidence level, where minimum samples required was four). The
collected data was analyzed on the basis of time taken in each stage of
the outbound logistics, with the help of Pareto chart and other statistical
tools.
Check
The results were then analyzed. Charting data make it much easier
to see trends and to convert the collected data into information.
This information is then used in the next step “ACT”.
Act
After analyzing the data, several suggestions were given on reducing the
turnaround time mainly by targeting the bottlenecks, i.e. documentation
and processing time & idle time before loading. The changes to be
applied were determined that included improvement of the process.

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Overview of the Sampling Plan
Population
There are two warehouses, i.e. biodiesel and palm oil, where the finished
goods are stored and then loaded into the tankers. Two types of Tankers
are used to supply goods to various distribution centers around India,
namely Railway tankers and Other Marketing Companies(OMC).
Sampling
Sampling is done in two stages. Firstly, we are using random sampling,
to select strata, which are:
 Railway Tankers, and
 OMC’s
After selecting our strata we used convenient sampling to select the
tankers. They were selected on the basis of:
 Product to be loaded
 Outer Condition
 Cleansed from inside
 Tankers to be loaded in 1st and 2nd shift.
Sample Size
A total of 50 tankers was taken for a period of 10 days, among which
 Number of Railway Tankers : 42
 Number of OMC’s: 8

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Analysis of the Data
The data of fifty tankers, related to time consumed by each of the 12
activities pertaining to outbound logistics in a period of ten days, was
collected and analyzed by using various tools, one of which is Pareto
Chart, (Asaka, 1990). This chart helps to find out the vital few
as compared to the trivial many. The top two bottleneck processes were
identified from analysis of Pareto charts as shown in Figure 3.
4.1Overall Findings
 Documentation and the processing” time consuming close to
twice the time of loading.
 This is followed by the “idle time before loading”.
 Shift change-over and breaks to be streamlined with loading
operations.

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 Pick slip generation not in line with vehicle availability, slips
generated for vehicles which aren’t available while no slips for
those available in yard. The data was analyzed further on the
basis of departments, i.e. Biodiesel department and Palm oil
department.
Biodiesel Department
Some of the challenges which were faced regarding the outbound
logistics (finished goods) in the Biodiesel department, along with the
Pareto chart, are discussed below. Figure 4 displays the Pareto
Chart showing the time required for different activities in the
outbound logistics. The Pareto chart indicates that the time
spent on two activities namely documentation and processing
followed by idle time happen to be major time consumers.
Challenges faced
 In case of ad-hoc issues such as delay in generation of pick slip
(quality issue) cannot be predicted and hence vehicles should not
be allowed to enter the premises under such circumstances.
 Delay in reporting by the workers at the time of shift change and a
longer break while sometimes is the case for security guards too.
 No empty slots for goods loading, which increases the idle time
before loading.

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 Vehicles loaded in the evening / night are cleared only the next
day morning and some are extended till noon awaiting completion
of documentation, loading receipt etc.
 Documents are prepared in the coffee warehouse and shunted
every time resulting in more delay.
 Transport representatives are yet to understand the Turnaround
time and usually don’t take the same on priority.
Implementation
On analyzing the data, the problem areas identified are as following:
 Documentation and Processing time
 Idle time before loading
On identification of the above mentioned problem areas, an improved
process was implemented on a sample of four tankers. On the basis of
the data collected after this implementation, those improved steps were
suggested to the department for reducing the total turnaround time.
Steps Implemented
The steps implemented to attack the above mentioned problem areas,
and to decrease the total turnaround time are as following:
1. Pick slip was handed over to the tanker driver at the entry gate, after
the security personnel checks all the documents.
2. The tanker driver hands over the pick slip to the security personnel at
the warehouse for batch identification
3. Challan generation was initiated after the completion of loading

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4. The challan and other documents, except Loading Receipt, are handed
over to the driver along with the keys by the security personnel.
5. The driver was allowed to exit the factory premises with the challan,
checklist and count slip.
6. Loading Receipt is collected by the driver after exiting the factory
premises. These steps were implemented keeping in minds all the rules
and regulations required to be followed.
Improvement Achieved
On implementing the previously mentioned steps, and proper
supervision, substantial improvements were noticed. The time taken by
the two bottlenecks was decreased to a substantial level, along with the
total turnaround time. A comparison of the time taken before and after
improvement is shown the Table 1.

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On implementing the suggested steps mentioned above, following
improvements were seen:
 Around 80% reduction in idle time before loading [(52.76-
10.50)/52.76]
 Around 92% reduction in documentation and processing time
[(76.98-6)/76.98)]
 The total turnaround time was reduced to 125 minutes, a drop of
around 47% [(238.18- 125.5)/238.18]

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4.2Recommendations
After the completion of the study and pilot run, following suggestions
were given for decreasing the total turnaround time of the outbound
logistics:
 Pick slip to be handed over at the entry gate to the driver so as to
ensure that all vehicles come inside the factory with a loading
advice.
 Prior intimation to tanker drivers about tentative completion of
load so that they are ready for loading.
 Bill generation and other documentations like challan, etc. can
start as soon as the loading ends.
 Challan and other documents for biodiesel section to be printed at
the dispatch office .
 Handing over the bill and other documents to the tanker driver,
after the completion of loading (or tarpaulin dressing), by the
security personnel.
 Loading Receipt should be collected by the driver only once the
vehicle exits the premises.
 Decrease in maximum number of vehicles in the factory premises
from 10 to 6, at any point of time.
 Coordination between FG supervisor and the security personnel
to be improved for effective implementation.

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 Document generation during 3rd shift to avoid overnight stay of
the loaded tankers.
 An extra worker for tarpaulin dressing, probably all logistics
representatives can poll in one person who can act as a common
resource.
Assumptions/Limitations
Understanding the sequence of the process at times was not easy as
different people had different versions of their own for the same
activity. However, repeated discussions with the concerned people
including our organization guides was helpful in the matter, clarifying
our doubts just at the right time.

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5. CONCLUSION
Emami Agrotech Ltd. has been fortifying its place as a leader in
nutrition, health and wellness for more than decades in India. SCM has
played a vital role in meeting the target volumes for market expansion.
The whole exercise of the project to reduce the turnaround time for
finished goods was crucial from this angle. With the increasing number
of volume of tankers each year, it was almost imperative to improve
the efficiency of the process so that more number of tankers could be
pushed to various region for Biodiesel and throughout India for Palm
oil. Simple elimination of steps by virtue of segregation of
responsibilities between logistics representatives and transporter agents
was quite fruitful in improving the situation during the pilot run. It could
reduce the average turnaround time to nearly 3 hours if these steps
are implemented before the start of the peak season. There are many
challenges in day to day work of the SCM department that needs to be
addressed and it involves all the people starting from the top
management to the workers at the loading bay, for a better coordination
and timely information dissipation can always help improve the
productivity and service commitments. Once the recommendations are
religiously implemented and strictly enforced on a full time basis, the
company will definitely help improve the business process and
smoothen the likely fluctuations.

71 | P a g e
6. ANNEXURE
Turnaround Time

78 | P a g e
7. BIBLIOGRAPHY
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 Ahya, C. (2006) “The Retail Supply Chain Revolution,” Economic
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 J. Van Gerpen, B. Shanks, and R. Pruszko, D. Clements, and G.
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Energy Laboratory, NREL/SR-510-36242, July 2004.
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Petersen, Luc Moens, “Biomass Oil Analysis: Research Needs and
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th
Australian Agronomy Conference, 2003.
 Tickell, Joshua, 2003. “From the Fryer to the Fuel Tank”,
Bookmasters: Ashland, OH.

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