Cpgp day02 7- total loss of economic value

1. National Cleaner Production Centre, Sri Lanka
Total loss of economic value – Case of DC Mill
Followings are some simplified details obtained from records of a Cleaner
Production assessment conducted at a Desiccated Coconut (DC) mill by National
Cleaner Production Centre, Sri Lanka in year 2004.
Process
Dehusked nuts purchased in the field are transported to the mill. One lorry load
contains 15,000 nuts and the transportation cost is Rs.25/- per km. The nuts are
deshelled and pared by workers in the mill at a rate of Rs.60/- per 100 nuts for
both operations. The kernel (pared coconut) is processed in to Desiccated
Coconut (DC) in its production line at a cost of Rs.2/- per kg of kernel. Finally
the product is packed in to air tight bags for export.
Weight of DC produced by 100 kg of kernel is 10 kg.
Material balance
Following data were obtained in a material balance conducted for a sample of
1000 nuts purchased in the field.
Purchasing cost of nuts in the field – Rs.18/- per kg.
Distance of transportation - 50Km
Weight of 1000 nuts – 650 kg
No.of spoilt nuts found in inspection after unloading – 25 nuts
No.of broken nuts during loading & unloading – 20 nuts
No.of spoilt nuts found in de shelling & paring – 15 nuts
Weight of the shells – 180 kg
Coconut water – 66 litres
Weight of paring – 50 kg
Spillages in the final packing operation-0.5 Kg
Questions
1. Calculate the total loss of economic value of the material (coconut) during
the process.
2. Suggest at least five low cost options to reduce the economical losses
encountered in the entire operation

2. Purchasing cost of 1000 nuts = 650 x 18/=
= Rs 11700/=
Transportation cost of 1000 nuts = 50 x 25/= x1000/15000
= Rs 83.33
Economic value of 1000 nuts @ the mill = 11700 + 83.33
= Rs 11783.33/=
Loss of economic value of spoilt nuts found in inspection
= 25 x 11783.33/1000
= Rs. 294.58
Loss of economic value of broken nuts
during loading & unloading = 20 x 11783.33/1000
= Rs. 235.67
Economic value of balance 955 nuts
= 11783.33 – (294.58 + 235.67)
= Rs. 11253.08
Value of 955 nuts after deshelling
& pairing = 11253.08 + 955x60/100
= Rs. 11826.08
Loss of economic value due to spoilt nuts
found in de shelling & paring = 15 x 11826.08/955
= Rs. 185.75
Economic value of kernel of
balance 940 nuts = 11826.08 – 185.75
= Rs. 11640.33
Weight of kernel = (940 x 650/1000) – (180 + 66+ 50)
= 315 kg

3. Processing cost of kernel = 315 x2
= Rs 630.00
Economic value of DC produced = 11640.33 + 630
= Rs. 12270.33
Weight of DC output = 315 x10/100
= 31.5 Kg
Loss of economic value of
spilled out DC = (12270.33/31.5) x 0.5
= Rs. 194.77
Economic value of final output of DC = 12270.33 – 194.77
= Rs. 12075.56
Total loss of economic value
= 294.58 + 235.67 + 185.75 + 194.77
= Rs. 910.77