MISGuidelines PalmOilIndustry

CONTENTS
1 PALM OIL INDUSTRY IN THAILAND 1-1
1.1 BACKGROUND INFORMATION 1-1

1.2 MANAGEMENT OF ENVIRONMENTAL IMPACTS FROM PALM OIL INDUSTRY 1-5
1.3 BUSINESS PERSPECTIVES IN PALM OIL INDUSTRY IN THAILAND 1-8
2 PALM OIL PRODUCTION PROCESS & MATERIAL FLOWS 2-1
2.1 PALM OIL PRODUCTION PROCESS 2-1

2.2 MATERIAL FLOW 2-6
3 MIS INTRODUCTION 3-1
3.1 BACKGROUND 3-1

3.2 OBJECTIVES OF MIS APPLICATION 3-1
3.3 BENEFITS OF MIS APPLICATION 3-2
3.4 MIS PRINCIPLES 3-2
4 APPLYING MIS PROCESS TO PALM OIL INDUSTRY 4-1
4.1 PRODUCTION PROCESS MODEL 4-1

4.2 DATA COLLECTION AND CONSOLIDATION 4-4
4.3 DATA PROCESSING 4-21
4.4 INFORMATION REPORTING & ANALYSIS 4-29
LIST OF TABLES
Table 1.1a Oil Palm Plantation in Thailand 1-2

Table 1.1b List of Palm Oil Factories and Milling Capacity 1-2
Table 1.2a Examples of Eco-Efficiency improvement 1-6
Table 3.4a Suggested Tools for MIS Implementation with their Pros and Cons 3-14
Table 4.2a Proposed Data Collection Scheme for Primary Production Process
Section (Section#1) 4-7
Table 4.2b Proposed Data Collection Scheme for Oil Room Section (Section#2) 4-10
Table 4.2c Proposed Data Collection Scheme for Dry Process Section (Section#3) 4-13
Table 4.2d Proposed Data Collection Scheme for Wastewater Treatment and
Biogas System Section (Section#4) 4-16
Table 4.2e Proposed Data Collection Scheme for Utility Section (Section#5) 4-19
Table 4.2f Proposed Data Collection Scheme for Internal Control Values 4-20
Table 4.3a Management Information derived from Data Processing 4-22
Table 4.4a Summary of Management Information 4-34
LIST OF FIGURES
Figure 1.1a Distribution of Thailand’s Vegetable Oil Production 1-1

Figure 2.1a Standard Palm Oil Mill Process 2-1
Figure 2.2a Material Flow of Palm Oil 2-7
Figure 2.2b Material Flow of Water 2-8
Figure 2.2c Material Flow of Energy 2-9
Figure 3.4a General MIS Information Flow Diagram 3-8
Figure 3.4b Examples of Tools Used for MIS Process 3-13
Figure 4.1a Production Process Model for Palm Oil Industry 4-3
Figure 4.2a Locations of Data Collection in Primary Production Process (Section#1) 4-6
Figure 4.2b Locations of Data Collection in Oil Room (Section#2) 4-9
Figure 4.2c Locations of Data Collection in Dry Process (Section#3) 4-12
Figure 4.2d Locations of Data Collection in Wastewater Treatment and
Biogas System (Section#4) 4-15
Figure 4.2e Locations of Data Collection in Utility (Section#5) 4-18
LIST OF ABBREVIATIONS
AFTA Asean Free Trade Area

BOD Biological Oxygen Demand
COD Chemical Oxygen Demand
CPO Crude Palm Oil
DG Diesel Generator
DIW Department of Industrial Works
EFB Empty Fruit Bunch
ERP Enterprise Resource Planning
FFA Free Fatty Acids
FFB Fresh Fruit Bunch
GTZ German Society for Technical Cooperation
GUI Graphical User Interface
ICT Information & Communication Technology
IPPCS Integrated Pollution Prevention and Control Strategy
IT Information Technology
KPI Key Performance Indicators
LAN Local Area Network
MIS Management Information Systems
MRP Manufacturing Resource Planning
MS Access Microsoft Access
MS Excel Microsoft Excel
NOx Oxide of Nitrogen
PEA Provincial Electricity Authority
PC Personal Computer
INTRODUCTION
The Department of Industrial Works (DIW) is implementing a project on

Management Information Systems (MIS) for Industrial Pollution Prevention
and Control Project, supported by German Society for Technical Cooperation
(GTZ). Main objectives of the MIS Project are to establish environmental
information database at the DIW, to introduce an MIS for improving eco-
efficiency of selected industries, to make consultancy services available to
industries locally, and to establish public information centre on industrial
pollution.
As part of this MIS Project, ERM-Siam has been commissioned to undertake

a study on “Elaboration of User Requirements and Capacity Assessment of
Palm Oil and Native Starch Industries”. The study results provide necessary
inputs for the design and development of MIS for enhancing competitiveness
and eco-efficiency for these two industries. One element of the study tasks is
to establish MIS guideline for improving eco-efficiency and competitiveness
for palm oil and native starch industries.
Scope of this guideline addresses the application of MIS for eco-efficiency

improvement for palm oil industry. The principal objectives of this
guideline are:
• To allow management representatives of palm oil factories to realise

the importance, principles and benefits of using MIS for improving
eco-efficiency and enhancing business competitiveness;
• To encourage palm oil factories for collecting and analysing eco-efficiency

data, and making use of information to aid decision-making of the
management; and
• To provide introductory guidance for applying MIS for improving

eco-efficiency in palm oil industry.
Contents of this MIS guideline comprise background information on palm oil

industry in Thailand, standard production process and material flows, MIS
introduction, MIS principles and MIS application for palm oil industry.
Aim of the guideline is to support the development and implementation of

a meaningful MIS for improving environmental performance and eco-
efficiency in palm oil industry.
For further information, please feel free to contact the Bureau of Water
Technology and Industrial Pollution Management of the Department of
Industrial Works, Ministry of Industry.
Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

Chapter 1
Palm Oil Industry

in Thailand
1 PALM OIL INDUSTRY IN THAILAND
1.1 BACKGROUND INFORMATION
Palm oil production is one of the important agro-industries in Thailand with

major contribution to the country’s development during the past 20 years.
Palm oil is an agro industrial product, which has been listed for free trade by
Asean Free Trade Area (AFTA). However, Thailand had to request for
suspension of free trade in palm oil for a period of time, to give the palm oil
mill industry a chance to become more competitive, particularly with its
neighbouring countries Malaysia and Indonesia. Oil Palm tree varieties,
plantation management, extraction and refinery technology as well as down-
stream utilisation has to be developed and improved further to be competitive
with other palm oil producers in South East Asia.
The palm oil industry has a high potential for biomass energy utilisation and
therefore is one of the industrial sectors, which can contribute substantially to
the supply of alternative sources of energy. To be more competitive and to
ensure supply of alternative sources of energy the palm oil mills therefore
have to introduce suitable measures for eco-efficiency improvement including
improved energy/environmental management.
Total area for Oil palm plantation in Thailand is currently (2005) about 1.93
million Rai, allowing the production of about 4 million tones of Crude-Palm-
Oil (CPO) in 2005, which is an 8% increase compared with the CPO
production in 2003.
The share of palm oil in Thailand’s vegetable oil industry is about 58%,
indicating the importance of palm oil for the country’s supply of edible oil.
Details of vegetable oil production distribution are shown in Figure 1.1a.
Figure 1.1a Distribution of Thailand’s Vegetable Oil Production
Thailand Vegetable Oil Production 2003

822,397 Million Tons Refined Oil
Sunflower 3%
Rice Bran 3%
Coconut 4%
Palm Kernel 11%
Palm 58%
Soybean 21%

1-1
The majority (98%) of oil palm plantation and palm oil mill industry in
Thailand is located in the South of Thailand, only one palm oil mills is located
in the Central Region i.e. Chonburi province. The provinces with large
plantation areas are Krabi, Surat Thani, Chumporn, Satun and Trang.
Details of oil palm plantation during 2002 – 2004 are provided in Table 1.1.a.
Table 1.1a Oil Palm Plantation in Thailand
Province Plantation Area (Rai*)

2002 2003 2004
Krabi 563,908 575,148 595,517
Surat Thani 460,567 502,966 545,365
Chumporn 317,648 352,853 374,921
Satun 73,508 74,524 77,752
Trang 55,828 63,410 73,535
Prachuab Khiri Khan 40,545 50,165 52,055
Chonburi 35,866 50,987 59,523
Pang Nga 31,241 39,031 48,068
Nakorn Si Thammarat 24,593 26,464 29,825
Songkla 13,389 14,529 14,529
Ranong 13,002 19,133 25,264
Rayong 6,106 7,597 9,088
Trad 3,600 10,146 10,971
Naradhiwas 1,671 7,171 11,556
Others 2,389 5,269 7,123
Total 1,643,861 1,799,393 1,935,092
Source: Agricultural Economic Office, Ministry of Agriculture (2005)

* 1 Rai = 1,600 Square metres
Currently there are a total of 38 palm oil factories using standard wet process
located in eight (8) provinces of Thailand. Total milling capacity is 1,610 ton-
FFB per hour. A list of the palm oil factories is provided in Table 1.1b below.
Table 1.1b List of Palm Oil Factories and Milling Capacity
Name of Palm Oil Mill Milling Capacity

(ton- FFB/hr)
Krabi Province
1. Thai Oil Palm Industry & Estate Co., Ltd (Univanich 1) 60
2. Siam Palm Oil & Refinery Industry Co., Ltd. (Univanich 2) 30
3. United Palm Oil Industry PCL 60
4. Asian Palm Oil Co., Ltd. 45
5. Srijaroen Palm Oil Co., Ltd 45
6. Siam Modern Palm Co., Ltd. 45
7. Nam Hong 45
8. Andaman Palm Oil Co., Ltd. 15
9. The Krabi Oil Palm Farmers Cooperative Federation Limited 45
10. Palmorich Co., Ltd. 15
11. Univanich Palm Oil PCL (Lamtap: Univanich 3) 45
12. Wong Bandit 10
Sub-total 460

1-2
Name of Palm Oil Mill Milling Capacity
(ton- FFB/hr)
Chumporn Province
1. Chumporn Palm Oil Industry Public Co., Ltd. 60
2. Vichitbhan Palm Oil Co., Ltd. 60
3. Swee Palm 45
4. Thung Thong 45
5. Lang Suan Cooperative (LSC) 15
6. Taweesilp Palm Oil Co., Ltd. 45
Sub-total 270
Surat Thani Province
1. The Southern Palm I (TSP I) 45
2. The Southern Palm II 60
3. Unipalm Co., Ltd. 60
4. Thai Talow & Oil I 45
5. Thai Talow & Oil II 90
6. Green Glory 45
7. Thachana Palm Oil 30
8. The Natural Palm 60
9. Jiras Palm 45
10. SPO Agro-industry 60
11.Kanjanadit 15
12. Ta Chang Palm 60
Sub-total 615
Ranong Province
1. Jaroen Palm Rachagroot 10
Sub-total 10
Trang Province
1. Trang Palm Oil Co., Ltd. 45
2. Lam Soon (Thailand) PCL 45
3. Otaco 45
Sub-total 135
Satun Province
1. Thai Palm Development Co., Ltd. 30
2. Satun Industries Co., Ltd. 15
Sub-total 45
Chonburi Province
1. Suksomboon Palm Oil Co., Ltd. 30
Sub-total 30
Prachuab Khiri Khan Province
1. AST Palm 45
Sub-total 45
Total 1,610
Source: Department of Alternative Energy Development and Efficiency (DEDE) & GTZ (2004)
Surat Thani province has a total of 12 palm oil mills, which is the highest number
of factories in a single province. Total production capacity of the mills in Surat
Thani province is 615 FFB per hour, followed by Krabi, Chumporn and Trang.
Locations of palm oil factories are close to the oil palm plantations, as shown in
Figure 1.1b.

1-3
Figure 1.1b Palm Oil Factory Distribution
Chonburi
Prachuab Khiri Khan
Chumporn
Numbers of Factories in each Province
Ranong More than 10 factories
6 - 10 Factories
Surat Thani
1 – 5 Factories
Pang Nga
Krabi Nakhon Si Thammarat
Phuket Pattalung
Trang
Pattanee
Songkla
Satun
Yala
Naradhiwas
Source: Department of Alternative Energy Development and Efficiency (DEDE) & GTZ (2004)

1-4
1.2 MANAGEMENT OF ENVIRONMENTAL IMPACTS FROM PALM OIL
INDUSTRY
Palm oil production is characterised by the generation of substantial amount

of by-products accounting to more than 60% of the total production capacity
in terms of raw material input. Associated environmental impacts occur due
to the oil extraction process by steaming palm fruit, separating kernel and
extracting oil from the fruit (pericarp). A significant amount of water is used
in the production process, resulting in wastewater with high organic load
(BOD ≅ 30,000 mg/l, COD ≅ 90,000 mg/l and SS ≅ 34,000 mg/l).
The generated by-products are empty fruit bunch (EFB), fibre, shell, and
decanter sludge. In addition palm kernel are generated and subsequently used
for kernel oil production.
Good environmental management is necessary to ensure sustainability of the

palm oil producing industry. To achieve reduced environmental impacts
from palm oil processing, the environmental management practice has to be
integrated into the production process management system and include
efficient use of natural resources.
1.2.1 Considerations for Improvements in the Production Process
To avoid excessive generation of free fatty acids from enzymatic activities,

which would deteriorate the palm oil quality, the harvested Fresh Fruit
Bunches (FFB) have to be processed within 72 hours.
Losses in the production process can be avoided by, for example controlling
steam pressure and time during sterilisation to save energy, monitoring empty
fruit bunches to collect remaining palm fruits for re-sterilisation, controlling
the pressure during screw pressing to get maximum oil from fibre, etc.
Using inefficient types of equipment, insufficient machinery and plan

maintenance (including leakages/spillages) are major sources of oil loss in the
palm oil mills. This can be improved by the introduction of preventive
maintenance schemes ensuring that all equipment/machinery is in good
condition at all times.
Some examples of achieving improved eco-efficiency are shown in Table 1.2a.

1-5
Table 1.2a Examples of Eco-Efficiency improvement
Processing Detail Step Prevention and Control Results

Step
Raw - • Raw material should be • Easy to extract and
Material processed within 72 hrs provide better quality
Handling oil
Sterilisation - • Steam pressure and time • Saving energy and time
should be controlled
• Steriliser condensate • Easy to separate oil
should not be mixed with since it contains low
wastewater from oil room concentration of
suspended solids
Bunch - • Fruit bunches containing • Increasing oil yield
Stripping palm fruits should be
collected and re-sterilised
Oil Screw • Pressure should be • Minimising oil loss
Extraction pressing controlled to get with fibre
maximum oil out of the
fibre and minimise the
cracking of palm seed
Filtration • Vibrating screen should be • Separating small fibre;
in good condition Reducing the solid load
in crude oil; and
• Reducing water
consumption
Oil Settling tank • Retention time of oil in • Oil quality improved
Separation settling tank has to be
controlled to avoid FFA
increase
Desanding • Wash wastewater should • Reducing oil loss
be examined; and
• Desander should be
washed as scheduled
Decanter- • Decanter should be used; • Reducing oil loss;
centrifuging and • Reducing water
• Decanter should be consumption; and
checked and washed as • Reducing solids in
scheduled wastewater
Final Oil Steriliser • Condensate should be • Easy to separate oil
Trapping condensate separated from other
wastewater
Wastewater • One more separator • Reducing oil loss
from decanter should be added into the
(or separator) system
Washing and • Water should be • Reducing water
cleaning minimised: and consumption; and
water • Detergent usage should be • Reducing
minimised emulsification
Cooling water • Water should be collected • Recover good quality
from boiler for washing and cleaning oil back to the process;
and with routine collection; or • Reducing equipment
evaporator automatic skimmer should damage; and
oil collection be used for routine • Reducing oil loss
control; and equipment through leakage and
should be checked, accident
maintained and repaired
as soon as possible
Source: Environmental Management Guideline for Palm Oil Industry (1997)

1-6
1.2.2 Utilisation of Palm Oil Mill By-products and Residues
Solid residues from palm oil mill include empty fruit bunch (EFB), fibre, shell
and decanter cake. Liquid residue is palm oil mill effluent. Utilisation of
these residues could reduce factory’s waste disposal costs and reduce impacts
to the receiving environment simultaneously.
EFB can be used as organic fertiliser and soil conditioner as it maintains

humidity of the soil. It can be sold to local farmers for using as a substrate for
mushroom cultivation. Some mills introduce EFB pressing techniques to achieve
lower moisture content in the EFB, which can subsequently be used as biomass
fuel in suitable boiler systems for steam/electricity production.
Almost all fibre generated by the mills is used internally as fuel in the boiler for
steam and electricity generation. The amount of fibre generated by the palm oil
mills is sufficient to satisfy all steam and electricity requirements for Crude
Palm Oil (CPO) production. If excess fibre is generated, it can also be sold as
biomass fuel to other industries (i.e. cement and power plants).
Since the amount of fibre is generally sufficient as energy source for an individual
the palm oil mill, the majority of shells generated is sold to other industries (i.e.
cement and power plants) as biomass fuel or for the production of activated
carbon.
Decanter cake from the oil separation process is either dumped as solid waste
or sold to farmers to be used as fertilisers or animal feed ingredient.
Wastewater generated from the palm oil mill has a high organic and nutrient
(Nitrogen) content and therefore can be used after suitable treatment for
irrigation in the oil palm plantation. Some mills are using the raw wastewater for
biogas generation, which is subsequently used for electricity production.
Utilisation of raw wastewater for biogas and electricity generation is discussed in
Section 2.1.9.
Details of the integrated environmental management approach in palm oil

mills including the “Integrated Pollution Prevention and Control Strategy”
(IPPCS) are provided in the Environmental Management Guideline for Palm Oil
Industry – Department of Industrial Works, Ministry of Industry (1997).

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1.3 BUSINESS PERSPECTIVES IN PALM OIL INDUSTRY IN THAILAND
Information provided by the Thai-German E3Agro Project indicate that the total
installed production capacity of all existing palm oil mills is around 43% higher
than the existing supply of fresh fruit bunch (FFB) from the available oil palm
plantation area. Since the supply of FFB does not meet the demand of palm oil
mills shortages of raw material (FFB) and FFB price increases obstruct
competitiveness and further development of the palm oil industry in Thailand.
As a result, the profit margin of palm oil mills is comparatively small.
Product quality requirements by customers have increased in recent years, which

require the palm oil mills to introduce and apply stringent quality monitoring
systems. In addition, the palm oil mills have to address environmental concerns
by both the customers and the population surrounding the mills by introducing
pro-active environmental management systems. Increased competitiveness is
therefore of major concern to the palm oil mills which is supported by several
governmental agencies for example through the active technical & financial
promotion of biogas system application, the improved utilisation of by products,
and measures for overall eco-efficiency improvement.
1.3.1 Introduction to Biogas System
In recent years, a biogas system has been introduced to palm oil industry as its
application is proven to be economically viable. Process wastewater from the
palm oil production process is used as input to a system to generate biogases
mainly methane. Biogases are fed into gas engine to generate electricity, which
can be sold to the Provincial Electricity Authority (PEA). This is one of the
means that palm oil industry can generate additional revenue apart from crude
palm oil production. The application of biogas system can also reduce the
organic loading of the process wastewater and eventually minimise effect on
water pollution.
1.3.2 Utilisation of By-products as Biomass Fuel
The palm oil industry has a high potential for biomass energy utilisation and
therefore is one of the industrial sectors, which can contribute substantially to the
supply of alternative sources of energy. Unused materials or by-products from
palm oil mills can be used as biomass fuel and sold to other industries, such as
shells, palm fibre and empty fruit bunch (EFB). Maximising the utilisation of
these by-products can contribute in improving business performance and provide
a competitive advantage to the palm oil industry.
1.3.3 Eco-efficiency Improvement
At present, there are a number of drivers, which encourage industries to pay

more attention to eco-efficiency improvement. Such drivers include cost
reduction, responsibility to communities, managing environmental risks and
liability, maintaining market share, profitability, customer demands for
“greener” product, and regulations. Therefore, improving eco-efficiency by

1-8
promoting the creation of products while optimising resource use and
reducing wastes and pollution, can accommodate the business needs together
with enhancing the business competitiveness.
In recent years, palm oil industry in Thailand has started to realise the
importance and benefits gained from eco-efficiency improvement. For
instance, palm oil mills have focused theirs efforts more on the management
of saleable by-products (i.e. shells and fibre), installation of biogas system, and
resource conservation activities.

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Chapter 2
Palm Oil Production

Process & Material Flows
2 PALM OIL PRODUCTION PROCESS & MATERIAL
FLOWS
2.1 PALM OIL PRODUCTION PROCESS
The principle of palm oil production process is to extract the oil from palm
fruit using steam and pressing machine. The oil is then purified by the
application of gravity inducing oil separation. A schematic flow diagram of
the standard process of palm oil mills is shown in Figure 2.1a.
Details of process are described in the following sections.
Figure 2.1a Standard Palm Oil Mill Process
Fresh Fruit Bunch (FFB)
Steam Sterilization Condensate
Empty Fruit
Threshing
Bunch (EFB)
Steam Digestion
Screw Pressing
Hot Water
Oil Press Cake
Fiber-Nut
Vibrating Screen Fibre
Separation
Nuts
Crude Oil Nut Drying and

Settling Tank Purifier Cracking
Shell-Kernel
Shells
Underflow Dryer Separation
Crude Palm Oil Palm

Kernel Drying
Desanding kernels
Storage
Decanter-Separator
Sold
Wastewater Decanter Cake
Water
Chemical Biogas
Wastewater Pre-treated
Treatment wastewater Biogas Stream
Steam Boiler
Electricity Plant Plant Generator Turbine
Sludge Effluent Electricity used or sold Blowdown Emission

to Grid
Diesel
Generator

2-1
2.1.1 Arrival and Storage of Fresh Fruit Bunches (FFB)
In order to avoid an excessive production of free fatty acids due to a natural

enzymatic process in the mesocarp, transportation of the fresh fruit bunches
(FFB) from harvesting to sterilising should not exceed 72 hours. In normal
conditions, palm oil of fresh fruits contains about 1% free fatty acids (FFA).
This content tends to increase rapidly with the maturation of the fruits and
thus, could affect the value of the oil.
2.1.2 Sterilisation
FFB are sterilised in order to inactivate the natural enzymatic activity and
loosen the fruit, as well as to soften the mesocarp, resulting in easier
extraction of oil. Sterilisation is carried out in autoclaves of 20 to 30 tons FFB
capacity, with the application of “live steam”, at temperature of 130 °Celsius
and pressure of 3.1 bars, during 90 minutes.
2.1.3 Threshing
The sterilised FFB are sent to rotary drum threshers to separate the sterilised
fruits from the bunch stalks. The generated residues from this process
include empty fruit bunches (EFB) which contain moisture. EFB can be used
as organic fertiliser and soil conditioner as it maintains humidity of the soil.
It can be sold to local farmers for using as a substrate for mushroom cultivation.
Some mills introduce EFB pressing techniques to achieve lower moisture content
in the EFB, which can subsequently be used as biomass fuel in suitable boiler
systems for steam/electricity production.
2.1.4 Digestion
The separated fruits are discharged into vertical steam-jacketed drums

(digesters) and treated mechanically to convert them into a homogeneous oily
mash. Hot water is added to the digester to facilitate homogenisation.
This mash is subsequently put into the oil extraction press (screw press).
2.1.5 Screw Pressing
Screw pressing is a process to extract palm oil from mash. The extracted oil
phase is collected and discharged to the purification section while the solid
parts comprising fibre and nuts are separated by physical means.
This recovery process is further detailed in Section 2.1.8.
2.1.6 Oil Purification (Clarification and Drying)
The process of oil purification is divided into four (4) sub-processes during
which the suspended matter is dissociated from the raw crude oil.

2-2
Vibrating Screen of Raw Crude Oil
Screening of raw crude oil is carried out in order to separate large size of
solids such as dirt, fibres and fragments of the pericarps from the liquid phase.
Water is added to the raw oil and passed through a vibrating screen (Johnson-
Screen or Sweco-Screen) in order to improve the separation process. After
sieving, the oil still contains small size solids and water. Due to large surfaces
of contact of oil with air, the oil quality can be affected as an oxidation process
can occur.
Separation of Suspended Solids from Oil
The process is carried out to produce raw crude oil with expected composition
of 90%oil and 10% water.
The conventional procedure of separation of oil from water and suspended

solids is the “oil separation tank” method. Oil is heated either by the
introduction of live steam or with closed steam heating coils which facilitates
gravity separation. Depending on the applied settling tank surface loading
rate and retention time, this procedure has a low-separation efficiency, which
is about 50%. As a result, either the separated oil still contains a high
concentration of suspended solids or the settled residue (settling tank bottom
sludge) contains a high content of oil. In addition, long retention times
combined with high temperature can also reduce oil quality. To improve the
separation process, some mills switch from the settling tank system to a more
efficient oil clarification system using a three-phase centrifuge (decanter).
The separated oil floating on top of the settling tank is then collected by
a funnel system and sent to the oil purification system. The settling tank
underflow is collected in the sludge tank and subsequently treated for
recovery of oil.
Purification
Purification is a final process during which fine suspended solids are

separated and removed from crude oil.
Raw crude oil from the settling tank (top oil) is combined with recovered oil
from the treatment of the settling tank underflow. This results in a total
crude-oil production of about 163 kg per ton of FFB being processed.
Centrifuges carry out this final oil purification step (solids removal).
For improved operation efficiency, these centrifuges are equipped with
an automatic cake discharge and cleaning system. As the suspended solids
content in raw crude oil is low, generated volumes of solid residues are
negligible leading to a lower impact on the environment.

2-3
Oil Drying and Cooling
Due to high content of water in the purified crude oil, a treatment process
referred as oil drying and cooling is required.
The purified crude oil goes into a vacuum evaporation system. Subsequently,
the dried crude oil is kept in storage tanks and sold to an oil refinery.
This crude oil drying process-step has a lower environmental impact.
2.1.7 Recovery of Oil Separator Tank Underflow (Bottom Sludge)
The recovery process comprises two (2) sub-processes, which are carried out
in order to recover oil and to decrease the organic load of the liquid residue.
The bottom sludge from the “oil separation tank” is characterised by high oil
content (around 14%), high concentration of organic substances (both in the
dissolved form and suspended solids) and water-soluble substances.
In addition, the water phase contains fine fibres and sand.
Desanding
Desanding is a process to pre-clean the bottom sludge prior to being passed to

the decanter. Desanding is implemented to protect the equipment in the
subsequent process steps (in particular centrifuges) against clogging.
The bottom sludge is pre-cleaned by means of microstrainers/ hydrocyclones.

These “desanders” are frequently cleaned by discharging the accumulated
solids to the drain, followed by the injection of fresh water. Washwater
consumption for desanding is normally around 5 litres per ton of FFB.
Decanting-Separating
Decanting process recovers the oil contained in bottom sludge from separation
tank. The oil is then returned to oil separation tank.
The output of desanding process is discharged into decanter and separator,

producing recovered oil, decanter cake and wastewater, which is treated at
wastewater treatment plant.
2.1.8 Kernel Recovery Plant
After the solids parts leave the screw press, fibre and nuts are separated by
physical means. The fibre is used as biomass fuel in boiler on-site, whereas
the nuts are sent to the nutcracker or ripple mill section for recovery of palm
kernel, which is another product of palm oil mill besides crude palm oil
(CPO). The shell is separated from the kernel and collected for sale as fuel to
other industries. Only a small portion of shells is used as boiler fuel at
the palm oil mill.

2-4
2.1.9 Utilities
The main utility system in palm oil mill includes boiler, wastewater treatment
plant and biogas system (which is applicable to some of the palm oil mills).
Boiler
Steam is utilised in various sub-process of palm oil production; for example,

sterilisation and digestion. Raw water is treated in a softener plant for
removal of Ca-hardness and subsequently used as boiler feed water. Fibre is
typically used as boiler fuel. Shell can also be used as boiler fuel in case of
fibre shortage.
Wastewater Management
Generated wastewater from the palm oil mill typically goes to a biological
wastewater treatment process to ensure that effluent quality meets industrial
standard. However, in some palm oil mills, this generated wastewater with
high organic content (BOD – 30,000 mg/l, and COD – 90,000mg/l) undergoes
anaerobic digestion process as part of the biogas system for generating
electricity. Details are provided in the following section.
Environmental Management Guideline for Palm Oil Industry (1997) has provided
a review of suitable wastewater treatment technologies for palm oil industry,
including primary wastewater treatment, secondary wastewater treatment
and nitrogen removal.
Biogas System
Since palm oil wastewater has high organic load, it is suitable for producing
biogas by using an anaerobic treatment system. In the past, the most popular
wastewater treatment plant was pond treatment system, comprising anaerobic
pond, facultative pond, and polishing pond. Biogas generated from anaerobic
ponds was neither captured nor utilised. As energy price has significantly
increased in recent years, a biogas system has been introduced to palm oil
industry in order to reduce the cost of purchased energy.
Typically 1 m3 of palm oil wastewater can produce 12-16 m3 of biogas.

Consequently, biogas generated from the system is used for generating electricity
and selling back to grid. For example, 1 m3 of biogas generally can generate
around 1-1.2 units of electricity. Moreover, biogas generated from 1 m3 of treating
palm oil wastewater can generate around 29-39 Baht contributing to additional
revenue to palm oil industry (assuming that 70% peak and 30% off-peak is
applied, and average electricity price is 2.44 baht/unit).
In addition, organic loading of the processed wastewater can be reduced, which

eventually minimises effect on water pollution.

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2.2 MATERIAL FLOW
Performance of the palm oil production process can be determined by

considering the materials flows of production process. The materials include
inputs to the process (i.e. raw materials and energy) and outputs from the
process (products, wastes and emissions). A concept of material flows is
employed to identify, quantify and improve characteristics of products,
technical processes and eco-efficiency. Through this concept, analysis of
inventory based on balances of material and energy flows, and balance
evaluation are applied.
Assessment of production performance is made possible by material flows.

Thus material flow incorporates itself as a key decisive making factor in
production process. An example of how material flow is inclusive in decision-
making includes decision on response plans or tasks to be employed in order
to improve or solve any particular problems of production process.
In a typical palm oil mill, key materials influencing the eco-efficiency

performance are crude palm oil (CPO), water, and energy. These key
materials can reflect the causes of under-performing production. Material
flows associated with CPO, water and energy are shown in Figure 2.2a - 2.2c.

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Figure 2.2a Material Flow of Palm Oil
Oil in FFB
Recovered Oil
CPO to sell
Oil loss in Wastewater
Decanter cake
Oil loss in
Thru CPO production since entering fresh fruit bunches (FFB) into production
process, losses of CPO occur in various sub-processes. Losses are via empty
fruit bunches (EFB), fibre, wastewater and decanter cake. According to
Environmental Management Guideline for Palm Oil Industry (1997), about 56% of
the oil loss is through solid residues i.e. EFB and fibre, while the other 44 % is
discharged along with the liquid residues (mainly oil-room effluent).

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Figure 2.2b Material Flow of Water
Hot water
Effluent
Fresh water is converted into steam by boiler operation. Steam is mainly used
for sterilisation, and is used for digestion of fruit bunches. The steam is
partially lost in the exhaust of the sterilisation stage. Vibrating screen and
settling tank in the oil room section also require water to aid the processes.
Process wastewater mainly comes from the oil room section prior to being
treated, and discharged as effluent from the wastewater treatment plant.

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Figure 2.2c Material Flow of Energy
PRIMARY PRODUCTION PROCESS
DRY PROCESS
OIL ROOM
WASTEWATER BIOGAS SYSTEM
UTILITY
Remark
Oil room section consumes the highest electricity, compared with the other sections.
*
All machinery and equipment in all sections of the palm oil production
process consume electricity. Electricity is mainly generated by the steam
turbine to sustain the production process, and in absence of plant operations –
electricity is generated from the diesel generator. In some factories with
a biogas system – electricity is produced mainly for selling and distributing to

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the Provincial Electricity Authority (PEA). The oil room section consumes the
highest electricity, compared with the other sections.
To improve eco-efficiency, materials flows need to be established and

employed in order to understand the inputs and outputs of the production
process. The result is the identification of improvement opportunities within
the process. The material balancing flows function as pointer of where
the data should be collected and behave as balancing evaluation of material
inventory. For instance, through material balancing flow, oil loss within
the production process could be identified including where the loss is
occurring.
However, data and information on eco-efficiency in palm oil industry are

not fully made available at present. Actual information on material balance
of water and energy usage is rarely available. As a consequence, most
information regarding eco-efficiency are not fully utilised by management
to aid decision-making.
Theoretically, analysis of material inventory and balance could be

successfully undertaken, when eco-efficiency data have been continuously
collected. Therefore, the development of data collection, verification,
evaluation and information reporting is of particular concern, and is
a starting point for management information process to support decision-
making.
In this Guideline, Management Information System (MIS) is introduced for

improving eco-efficiency in palm oil production. The following sections of
the Guideline will describe MIS concept, principles and how MIS could be
applied to palm oil production.

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Chapter 3
Introduction to
MIS Application
3 MIS INTRODUCTION
3.1 BACKGROUND
Management Information System (MIS) is defined as a system or process that

manages the collection, analysis and presentation of information to assist
decision-making and to enhance business competitiveness. MIS is typically
used as a tool by management to assess and monitor business performance
and to help compare or identify possible business alternatives, i.e.
introduction of new activities and process modification in industries.
Basic functions of MIS are to systematically capture data from operations; to

analyse data and transform into meaningful information; and to report and
make use of information such as monitoring performance and improving any
given process or activities.
3.2 OBJECTIVES OF MIS APPLICATION
Since businesses have to face higher competition, Information Technology (IT)

has proven to be a crucial part of business decision making to obtain a leading
edge. Moreover, IT is also applied to other parts of the business such as
marketing, human resources, production process and eco-efficiency.
Specific objectives of MIS application depend on individual organisation’s

strategy. In this guideline, the main objective of MIS application in palm oil
industry is to improve eco-efficiency and competitiveness.
A number of internal and external drivers encourage organisations to focus on

eco-efficiency practices.
These internal drivers include:
• Cost reduction;
• Increasing quality of products and services;
• Increasing innovations and employee motivation;
• Responsibility to community;
• Profitability;
• Managing environmental risks and liability; and
• Maintaining or increasing market share.
External drivers include:
• Customer demands for more “environmental-friendly” products;

• Competitive advantage by setting the trend or following market leader;
• Shareholders demanding accountability and transparency;
• Thai government regulations;

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• Public pressure for cleaner production; and
• Government regulations and directives where products are exported to
overseas such as European Countries;
Market globalisation has influenced companies to greatly improve the quality

and environmental soundness of products and services they provide while at
the same time to produce goods at the lowest possible cost. In such a context,
eco-efficiency improvement by promoting the creation of products while
optimising resource use and reducing wastes and pollution, can answer
the increasing business needs together with enhancing the business
competitiveness.
In this perspective, the introduction of MIS can provide valuable support for
successful decision-making at the management level in palm oil industry.
With such a tool, eco-efficiency improvement can be achieved while at
the same time, competitiveness can be enhanced.
3.3 BENEFITS OF MIS APPLICATION
It is important to understand how MIS technology can support decision-

making and help to improve business competitiveness. However MIS can also
lead to a number of practical benefits for improving eco-efficiency.
These benefits include:
• Encouraging palm oil industry to collect, analyse and transform

eco-efficiency data into meaningful information for the management in
a timely and systematic manner supporting order to support their
decision-making;
• Allowing the management of palm oil factories to identify gaps for
improvement, to monitoring performance (either for their own internal
benchmarking or industry benchmarking), and also to compare various
alternatives such as process modification and installation;
• Increasing palm oil productivity and maximising return on investment;
• Cost reduction measures (and increasing revenue) through more efficient
use of materials, resources and energy;
• Reducing risks and liabilities with appropriate environmental
management planning and avoiding the use of toxic substances;
• Enhancing brand image through efforts on marketing and communication;
and
• Improving environmental performance and reducing toxic emissions by
reusing and recycling unused materials.
3.4 MIS PRINCIPLES
Basic requirements for MIS application and implementation are categorised

into three (3) main elements comprising “People”, “Implementation Process”,

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and “Tools” (hardware and software). Principles and relationship between
these elements are elaborated in this section.
3.4.1 People
The most important element in MIS is the people involved since all objectives
and benefits will be addressed by understanding personnel who will also
oversee MIS process, information and tools.
An MIS operation comprises of several tasks; therefore, it is necessary to

group such tasks, based on relevance, and assign roles and responsibilities to
fulfil them. By doing so will not only clearly define roles and responsibilities
to perform MIS processes but also assist plant owners to be able to select and
recruit suitable personnel.
It should be noted that the amount of MIS personnel is based on plant owner
consideration. Typical roles and responsibilities in MIS implementation are
described as follows.
Roles, Responsibilities and Qualifications:
In general, there are three (3) levels of roles and responsibilities for personnel
involved in MIS implementation, comprising management role, supervision
role, and operation role.
Management Role
Every successful MIS requires management support and involvement.

Without management, all data collection and analysis for decision making will
not be meaningful. The main role of management is to bind MIS and other
operation together to implement the decision made from MIS reports and/or
decision-making process. Also, management needs to take an active role in
facilitating the followings:
• Use and interpret information from MIS reports for decision-making;

• Align MIS strategy and policy with business strategy;
• Guide MIS supervisors on objectives and benefits of implementing an MIS;
• Provide and manage MIS budget and personnel;
• Communicate the importance of MIS to all employees including
MIS personnel and all other department personnel; and
• Provide support in further development and improvement of MIS in the
future.
Supervision Role
Personnel in charge of MIS supervision can be someone who posses an overall

understanding on how to reach the objectives and realise the benefits, while
manage and supervise MIS operation. Thus MIS supervisor is not necessarily

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Information & Communication (ICT) trained or certified personnel. Typically,
the supervision role is undertaken by a plant manager, production manager,
or dedicated MIS supervisor. However, it will be beneficial if MIS supervisor
is comfortable with computer technology.
Supervision roles and responsibilities include:
• Oversee all MIS processes, information and tools, are implemented in

a correct and good manner with clear understanding of realising the
objectives and benefits;
• Introduce the MIS procedures and its objectives to MIS operation
personnel;
• Analyse data and create useful information;
• Report information findings and recommendations to management for
decision making; and
• Organise maintenance, troubleshoot, and upgrade all MIS hardware and
software (optional).
Operation Role
Operation role can be assigned to any plant staff, who is involved in any
particular process that needs data collection. Typically, the plant personnel
taking the operational role come from different departments such as
production staff and laboratory staff. Understanding that data collection and
MIS procedure implementation are different tasks from regular operation
tasks, selecting personnel for this role requires those who understand and able
to perform MIS tasks with comprehension and care.
At the plant floor, implementing MIS procedures are secondary to operational

tasks unless acquire dedicated MIS personnel. MIS supervisors need to make
sure that MIS operation personnel are trustworthy and honest to their
responsibilities. Otherwise, MIS procedures and data collected will be skewed
and not present actual findings, which will lead to poor analysis, poor
reporting and poor decision making. Above all, it will not assist in realising
the objectives and benefits set out to implement MIS in the first place; hence,
careful selection and monitoring of MIS operation personnel is vital.
Operational roles and responsibilities include:
• Implement MIS procedures and tasks at any particular process required;

• Collect and enter data into provided system (i.e. software) accurately and
honestly; and
• Organise maintenance and troubleshoot, and upgrade all MIS hardware
and software (optional).
It should be noted that dedicated MIS team/personnel is recommended to
supervise, monitor and implement MIS procedures, tasks and tools.
Nevertheless, this would depend on the plant owner insights, budget and
operations.

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3.4.2 MIS Implementation Process
People, as described in the previous section (Section 3.4.1), will need to adopt
MIS processes and understand the information flow to implement MIS, and
successfully meet its objectives and benefits. A methodology for applying an
MIS needs to be selected for MIS implementation.
Every industry is different and so are their processes, information flow and
methodology. Conversely, the MIS processes could be applied to the palm oil
industry. This section describes typical MIS processes, information flow and
methodologies for applying an MIS.
Typical MIS Processes
Preparation Stage
At this stage, people roles need to be assigned, tools need to be selected and
acquired; processes will need to be set and communicated to relevant
personnel and departments. Training is often required for personnel of
related process. Management shall take on the role in identifying the needs
for MIS implementation, setting the strategy, objectives, and the foundation
and its cooperation between internal departments and management, which in
turn determines the achievement of MIS commencement.
Personnel involved: Management, MIS, and Related Department Heads
Data Collection and Consolidation
Data collection and consolidation is a crucial process as it gathers actual data

from plant level. In most cases, this process is undertaken by existing plant
staff and not specifically dedicated MIS personnel; therefore, training and
reminders are often provided. To ensure the quality of data, a data audit
process shall be conducted from time to time.
After collection, data need to be consolidated and stored such as entering data
into software1 to be systematically structured for further analysis.
This process is sensitive and is regarded as the most human error process in
MIS. Entering incorrect data, into the system would lead to poor analysis.
To prevent human error, data verification process based on each plant’s MIS
policy may need to be implemented.
Personnel involved: MIS Supervisor and Assigned Operator
Data Cleansing & Verification or Data Auditing
This process is optional depending on each plant’s MIS policy. This process
varies from industry to industry but is required for financial application
(1) Software-enabled method

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processing such as credit card or loan. For palm oil industry, it varies from
plant to plant whether data collection and consolidation is adequate and
reliable. If not, MIS supervisors will need to allocate additional resources to
verify data collected. Consequently, this process will not be emphasized in
this guideline.
Data Processing
Processing of entered data will create sets of information that will allow
management to support decision-making. Each set of information will then be
compared and analysed to measure each production processes’ efficiency,
illustrated by key performance indicators (KPI), creating plant and industry
benchmarks. Data processing is generally carried out by software.
This process is viewed as the most vital process in MIS processes since data
processing will provide key information such as how efficient each process is,
how each data collected can help improve efficiencies, and how to initially
adjust each process for better throughput according to data analysis.
Personnel involved: MIS Supervisor and Management
Information Reporting and Analysis
Following analysis, set of information will need to be arranged in a

presentable format for reporting. The purpose is to formalise sets of
information in a simple visual format so that high-level executives or
management can easily review it.
In regards to time constraint on management to review the information, it is

critical to standardise reports so that management has little-to-no learning
curve understanding the information. MIS needs to design this displaying
information process into formatted reports while incorporating minimum
time usage as possible; automate such process will be ideal. Recent researches
indicate that significant MIS time and resources are allocated to report
creation rather than necessary processes.
Since different management require different information based on their

interests; therefore, MIS reports should be designed to provide necessary
information for decision-making in the viewpoint of their interests.
Decision-making
This process is mainly management’s responsibility. MIS takes a supportive

role. Undeniably, this process is the pinnacle of MIS processes as it
summarises all MIS effort and allows MIS to make recommendations to
management based on analysed information.

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Despite the outcome, implementing management’s decision is an assigned
departments’ responsibility which may need MIS support to fulfil such
implementation.
Information Flow
Relationship between MIS process and MIS roles and responsibilities is

summarised and shown by a typical information flow diagram in Figure 3.4a
as follows.
Methodologies
To capture and enter data through analyse and present information, all MIS
processes need to apply a methodology to centralise and store such data while
enable the information flow. Methodologies can be categorised as such:
Manual Method
This is the most labour intensive approach to carry out any process.
It requires involved personnel to utilise basic tools such as paper forms and a
calculator to perform process’ tasks. Filing of gathered or even analysed
information is at the heart of each method. The manual method requires
paper-based filing (storing) as actual working documents while act as back-up
copies at the same time.
This manual method requires the most resources when compare to the next
two methods but may present the most cost-effective approach due to low
investment in tools and low maintenance. However, this method presents
frequent human errors.
Unavoidably, as information technology becomes more sophisticated and

more economical, businesses grow to rely heavily on them; hence, the need of
continuity plan is becoming more important. It has been proven time and
time again, that when unforeseeable event occurs, technology cannot aid the
continuity of business processes. Although primitive technology-wise, this
method became the standard continuity process for MIS practice.

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Figure 3.4a General MIS Information Flow Diagram
Production Control Decision

Process Modification making
Management
Information
Data calculation reporting &
analysis
MIS Supervisor
Data storage
Data collection
& consolidation
Data
verification
MIS Operation

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Software-enabled Method
This method requires an interaction with software on a personal computer

(PC). A minimum set of a PC is at the base of this method.
As discussed in the section “Data Collection and Consolidation”, to

systematically structure entered data, the software interface (screen) is
extremely important. This part in software design is called Graphical User
Interface or GUI. GUI is not only formatting fields on a computer screen but it
is a psychological behaviour pattern that is interpreted into a screen layout so
that users can understand how to use it at best.
Decent GUI allows users to engage and interact with data whether entering,
formatting, calculating or so on with a low learning curve. However, good
GUI design also depends on the software functionality. If it serves simple and
straightforward functions such as data entry, it shall be designed to
accommodate the sequence of data to be entered for such industry specific
process.
No matter how well designed-software GUI is, error occurs at the interaction
of human and PC since human performs data input. In addition, data
auditing and process monitoring are viable options to assure better data
quality and lower human errors.
Calculation and analysis including other MIS processes except decision-

making can adopt software usage in two approaches: “file-based” and
“purchase”.
File-based is where MIS personnel create or adopt file associated to each MIS
processes and deploy them on role usage basis. For instance, data entry at
sterilisation process may have one PC with a file to enter data for such
particular processes involved. This approach, although widely practice,
presents problems of storage, analysis and reporting since data are scattered
in files on multiple PCs. To solve this problem, MIS can customise
productivity software such as Microsoft Excel and Access to service the
information flow. Such approach is an in-house software design, which
requires time, tools (network, cable wiring, database, server and so forth) and
resources and is not standard but highly customised to that particular
business. Consideration to take this approach depends on MIS know-how
and skill.
A viable and standard alternative is to use purchased software, which is

created by reputable companies who have deep knowledge in industry
processes. Supporting information flow for a palm oil mill may require
software that interconnects from each production process to process. This
particular type of software is called Manufacturing Resource Planning or
MRP. MRP is industry standard software but needs to be customised to fit
each plant’s production process, financial and accounting, and required

3-9
information in other departments. It may be costly, but it is proven to be the
most productive tool to enable efficiency boosting.
Automated Method
A sophisticated approach, which entails investments beyond computer

hardware and software, requires control over each process using hardware
and electronics that are able to capture data, alert on out-of-setting events and
interconnect to a computer network. This method is generally controlled via
a network of electronic controls and computers. Details of this method vary
highly from process to process; therefore, will not be discussed in this
guideline.
3.4.3 Tools
This section introduces MIS tools from paper-based to sophisticated tool, and
their attributes to consider its suitability to adopt.
Paper, Pencil/Pen and Calculator
Paper, pencil/pen and calculator are the most basic tools for any business
operation, and also the fundamental tools for MIS. No matter how
sophisticated MIS implementation can be, these tools would always be
required in business, as they are extremely familiar to any level of business
operation and are mostly adopted. Thus, application of these basic tools in
MIS process is straightforward. The advantage of these tools is that they
require almost no explanation in usage. The manual methodology requires
these sets of tools as mentioned previously for business continuity planning
and support.
For MIS, these tools can be applied specifically to data collection and
calculation processes. Unavoidably, as manual it is, prone to errors it
becomes. Repetition and verification of each process may be required to
guarantee its correctness.
Personal Computer (PC) and Productivity Software
In the late 1970s and early 1980s the personal computer (PC) has made its way
into every business. The reason is because it can support several tasks in one
machine lending a lot of equipment obsolete such as the typewriter.
However, it is the software inside the PC that makes all the difference.
Software are computer programs designed to serve specific tasks. The most
widely adopted next to operating system (programs to make PC function) is
productivity software such as Microsoft Office.
In a package of productivity software combines a word processor,

spreadsheet, presentation, communication, small database version of software
for users to work on.

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The success of Microsoft Office made the standard productivity tools
synonymous with its brand name such as Microsoft Word, Microsoft Excel,
Microsoft PowerPoint, Microsoft Outlook and Microsoft Access respectively.
These software normally substitute any manual process due to its ease of use,
functionalities, and versatility; hence, it is standard for any business operation
to deploy PCs with productive software as it can serve any business.
File Cabinet and Database
The common purpose of these two is storage of data; the difference is in its
form. A file cabinet files paper-based documents, but database files digital
information in a digitally structured file cabinet.
A database is crucial to store data for data input such as entering data for data
collection and data output such as displaying data consolidation to perform
calculation or even as a report. Database is an electronic centralised place for
data storage. Normally the access of data is from many PCs; therefore, a
database is usually placed in a server on a network of PCs to access.
Before or after storing data electronically, the actual paper is used for writing
down data collection from any production process to print outs of data forms
to perform calculation or reports. All need a physical location to store, which
is the file cabinet.
File cabinets act as a backup location for database’s data printouts whether in
forms of raw data, data tables or reports. File cabinets are proven inadequate
to serve data input and output like databases. Hence, in business practice,
both coexist due to dependability. Procedures to guarantee the safety of
business data are also critically required; backup procedures are commonly
adopted.
Server and Local Area Network (LAN)
A server is a regular PC but dedicated as a public PC to allow other PCs to

access information on it such as a database.
A Local Area Network (LAN) comprises of multiple PCs, servers and network
equipment (i.e. hub, router, switch, etc.) to enable communication with other
PCs. The purpose of communication is to exchange information whether
being email, documents, data, and any forms of electronic information.
There are two (2) types of networks, which are wired/cable and wireless.
Wired/Cable Network
Wired/Cable network will use a physical network cable to physically connect

each PC. The advantage of using cable is that data transmission is reliable,
fast and cost-effective.

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Wireless Network
Wireless Network will use radio emission as media to carry the data over the
air between each PC. The advantage of wireless is the flexibility of location if
within radio emission reach, but it will sacrifice speed. When compare similar
size of networks, wireless networks are more expensive than wired.
MRP and ERP
MRP stands for Manufacturing Resource Planning; similarly ERP stands for
Enterprise Resource Planning. Both are software designed to connect
business processes and facilitate information flow using PCs, servers, and
network.
Each industry has its own specific MRP/ERP as processes are different.
For a given industry, MRP/ERP attempts to consolidate most processes by
using MIS. Currently, the average business that implements MRP/ERP can
bind 20% of the overall operation. This is due to the complexity of each
department and the interconnectivity to facilitate information flow.
Each department has its own sets of processes, which can create a complex
flow of information within the department. Implementing MRP/ERP requires
the management to to emphasize to all departments for cooperation. Over the
past two decades, Key Performance Indicator seems to be the driving force for
department cooperation.
Figure 3.4b illustrates different tools at each MIS process in accordance with
information flow.
A misconception of tools is to select, acquire and utilise the most advanced or

up-to-dated hardware and software when, functionality-wise, a moderate set
of computer hardware and software can perform such tasks adequately.
Adopting overqualified tools always irrationally causes increase in MIS
budget.
It should be noted that tools are to facilitate people to carry MIS processes and
information flow; understanding the methodologies, nonetheless, is more
essential than selecting and acquiring tools. The reason being that with such
understanding, MIS can better select and apply suitable tools that support
process requirements.
Table 3.4a addresses suggested tools for different methodologies (Manual,

Software-enabled and Automated) associated with MIS processes.

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Figure 3.4b Examples of Tools Used for MIS Process
Production Control
Process Modification
Decision making
Management
Data calculation Information

reporting & analysis
MIS Supervisor
Data storage
Data collection & consolidation
Data
verification
MIS Operation

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Table 3.4a Suggested Tools for MIS Implementation with their Pros and Cons
MIS Methodologies
Process
Manual Software-enabled Automated
Data Pen/paper form Pen/paper form Pen/paper form Combination of

Collection hardware and
software to
Data Entry Pen/paper form Excel/Access Packaged
control
software/MRP
production
process
equipment
Data Form/calculator Excel/Access Packaged Analytical

Calculation software/MRP software or
business
intelligence
Information Paper report Access/paper report Packaged software/ Automated

Analysis & paper report report creation
Reporting and distribution
Pros/ Cons Most basic/ low-to- Widely adopted/ Currently best Highly effective/
no investment low investment practice/significant high investment
investment
Hard evidence Ease of access to Ease of use and Accurate data/

data/ high error rate MIS/Decentralised access to all roles sensitive system
data & storage with centralised
data storage/
customised on
Labour intensive Computer literate Training required to Free up

personnel required use software resources/ rely
on solution
vendor
As shown in Table 3.4a above, a wide range of tools can be adopted

depending on the methodology selected. However, in the real practice, a mix
of methodologies is applied.
Whether noting down data on a piece of paper then enter into a database form
or key-in collected data into a software on the plant floor and printout to store
in a file cabinet, a mixture of tools are often used based on each plant’s
operation, familiarity and budget. Therefore, a pre-defined set of tools is often
mistaken.
In summary, each methodology (Manual, Software-enabled or Automated)

will evidently require different types of hardware. For example, Software-
enabled, file-based method, requires MIS personnel to design program
productivity software such as Microsoft Excel and Access, to create forms
(in MS Access), to interface with data entry formula sheets (in MS Excel) to
calculate such data and so forth.
Whereas, the automated method requires more complex and sophisticated PC

to communicate and enable the automation of data capturing via other
hardware such as steam gauge censor. This method minimally requires
a local area network (LAN) to facilitate the information flow.

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In conclusion, plant owners can select a methodology with comprehension
while being empowered with tool knowledge to be able to select suitable
software and hardware accordingly.

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Chapter 4
Applying MIS Process to

Palm Oil Industry
4 APPLYING MIS PROCESS TO PALM OIL INDUSTRY
This section describes how an MIS process is applied to palm oil industry in
order to improve eco-efficiency. A production process model that facilitates
the MIS application for palm oil industry is hereby addressed. Also, the MIS
process for typical palm oil industry starting from data collection and
consolidation, data processing and to information reporting, is described.
4.1 PRODUCTION PROCESS MODEL
In order to facilitate data collection as part of the MIS process for improving
eco-efficiency, a representative “Production Process Model” for a typical palm
oil mill has to be established. As a consequence, a typical production process
of palm oil mill (shown in Figure 2.1a) can be arranged or sub-divided into
five (5) sections comprising: Primary Production Process; Oil Room; Dry
Process; Wastewater & Biogas; and Utility.
4.1.1 Primary Production Process (Section# 1)
Primary production process involves mainly with the conversion process of

raw material “Fresh Fruit Bunch” (FFB) into raw crude palm oil. This process
comprises sterilisation, threshing, digestion and screw pressing. Apart from
raw crude palm oil, a certain amount of Empty Fresh Fruit Bunch (EFB) is also
generated from this section (from threshing) which can be further used and
sold as biomass fuel or as media for mushroom cultivation.
4.1.2 Oil Room (Section# 2)
Once raw crude palm oil comes out from screw pressing step, it enters the Oil
Room. The main task of Section 2 is to purify the raw crude palm oil and to
improve physical property of crude palm oil. This section comprises vibrating
screen, oil separation tank, de-sander, decanter-separator, purifier and dryer.
This section also produces a significant volume of wastewater and decanter
cake.
4.1.3 Dry Process (Section# 3)
Dry process has a series of separation and drying activities of the fruit starting
from fibre-nut separation, nut drying and cracking, shell-kernel separation
and kernel drying. Kernel is one of the products from palm oil mills, which is
typically sold for further crude kernel palm oil production. During this
process, by-products are also generated such as fibre and shell. These by-
products can be used and sold as biomass fuels for other industries, such as
cement and power plants.

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4.1.4 Wastewater and Biogas System (Section# 4)
This section is mainly a wastewater treatment plant, which manages process

wastewater from palm oil production. Outputs from the treatment plant are
wastewater sludge and treated wastewater or effluent. In addition, some
palm oil mills have equipped the wastewater treatment plant with a biogas
system that generates electricity from the use of biogas generated from the
wastewater treatment process.
4.1.5 Utility (Section# 5)
This section comprises a process of plant steam and electricity generation.

Typical fuel that is used for boiler operation is fibre from the dry process.
Boiler is employed for generating steam to be used within the palm oil mills,
whereas a steam turbine is used for producing electricity for plant internal
use. Stack emissions from boiler are one of the pollution outputs from palm
oil mills.
A representative “Production Process Model “for MIS application for

improving eco-efficiency in palm oil industry is shown in Figure 4.1a.

4-2
Figure 4.1a Production Process Model for Palm Oil Industry
PRIMARY PRODUCTION PROCESS
DRY PROCESS
OIL ROOM
Recovered Oil
WASTEWATER BIOGAS SYSTEM
UTILITY
IP-GTZ Department of Industrial Works

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4.2 DATA COLLECTION AND CONSOLIDATION
In order to apply MIS, a set of data will continuously need to be acquired for
further usage. The first step as described in MIS principal process will be
the data collection and entry of each section in MIS production process model
(Figure 4.1a). After collecting data from each section, MIS will need to
consolidate all data into one centralised place whether on paper or in
a computerised format such as an excel file or a database. This is to help
facilitate the information flow for further processes.
As a baseline, users’ requirements and palm oil mills representatives’ needs

have been identified. A set of proposed data to be collected has been
established based on their current data collection, analysis and information
usage, and their needs for applying MIS to enhance business competitiveness
and eco-efficiency. Table 4.2a-4.2f illustrate the proposed data collection
scheme for each simplified production process model/ section of palm oil
industry.
The data collection scheme addresses proposed data, measurement unit,

priority of data collection, objectives, collection frequency, responsibility, and
measurement methods. It should be noted that the proposed data set has been
prioritised into “Priority 1” and “Priority 2” based on the main purpose of
enhancing the palm oil mills to implement a meaningful MIS. Criteria for data
prioritisation are given below:
• Priority 1 – Data that are directly related to palm oil productivity and the
use of main raw materials as well as the management of value-added
unused materials where economically viable to palm oil mills. In addition,
environmental data required to be reported to the government are also
included (Examples of data include the use of fresh fruit bunch, the use of
water, saleable shell and effluent quality); and
• Priority 2 – Data that are indirectly related to productivity of the palm oil
mills including pollution outputs from the production process, and also
those data that play a key role in the production process however are
hardly or costly measured at present (Examples of data include disposal of
decanter cake and boiler stack emissions).
“Priority 1” data are the minimum data requirements for applying meaningful
MIS for increasing business competitiveness and enhancing eco-efficiency for
a typical palm oil mill. In addition, these data will be further processed into
information or performance indicators to allow the management to use and
make decisions based on the given information. A set of management
information is addressed in Table 4.4a of this Guideline.
Locations of data to be collected are illustrated in Figure 4.2a-4.2e.

The collecting locations addressed in Figure 4.2a-4.2e are indicated by code
consisting of a letter with numbering.

4-4
Abbreviations of these numerical codes are provided as follows:
• P = Products and By-products (Valuable Unused Materials)

• S = Sales
• L = Efficiency and Losses
• C = Purchases
• I = Input Materials
• E = Energy and Fuel
• W = Waste and Emissions
Whereas, “Priority 2” data are optional data requirements that are useful and
help business competitiveness and eco-efficiency however these data are
considered as the second priority for the palm oil mills (with less concern than
“Priority 1” data). Thus, these data will not be transformed to the information
or performance indicators in this Guideline (but can be added on according to
the specific needs of individual palm oil mill).
In general, the collected data are first stored in a database and processed in
MIS software, and then key performance indicators (KPIs) are created and
these information are reported to management for decision-making.

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Figure 4.2a
PRIMARY PRODUCTION PROCESS Locations of Data Collection in Primary Production Process (Section#1)

4-6
Table 4.2a Proposed Data Collection Scheme for Primary Production Process Section (Section#1)
No Data Unit Priority* Objectives Collection Responsibility Measurement Methods

Frequency
I1 Amount of Fresh Fruit Bunch Ton 1 To monitor the amount of FFB being Daily Purchasing Weighing, i.e. the use of weigh bridge
(FFB) being Purchased purchased and to be used to calculate daily
average cost of FFB being purchased
I2 Use of FFB Ton 1 To monitor the amount of FFB being used Daily Production Weighing or estimated number of buckets
and to estimate and plan crude oil entering the sterilisation process
production
C1 Expense on FFB being Purchased Baht 1 To monitor daily expense of FFB being Daily Purchasing N/A
purchased and to be used to calculate daily
average cost of FFB being purchased
C2 Unit Cost of Ripe FFB Baht/Ton 1 To monitor unit cost of ripe FFB bought on- Daily Purchasing N/A
site. This data reflects the quality of FFB
being bought (ideally good quality)
C3 Unit Cost of Unripe FFB Baht/Ton 1 To monitor unit cost of unripe FFB bought Daily Purchasing N/A
onsite and this data reflects the quality of
FFB being bought (ideally poor quality)
C4 Supplier of FFB N/A 2 To record the source of purchased FFB Daily Purchasing N/A
I3 Amount of Steam Used at Ton/Batch 2 To monitor the amount of steam that allows Per batch Production Standard Flow Meter
Sterilisation proper timing and processing of FFB in the of
sterilisation process sterilisation
L1 Oil Content in Condensate % 2 To trace the oil content contaminated in the Daily QA Lab Analytical Standard Method
condensate stream from the sterilisation
process
P1 Generation of Empty Fruit Bunch Ton 1 To monitor the amount of EFB generated. Monthly Production Weighing/ Scale
(EFB) This data can be further used to track on the
utilisation of EFB as either biomass fuel or
by-product

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Frequency
L2 Fruit Loss in EFB % 2 To help evaluate the efficiency of threshing Daily QA Lab Weighing/ Scale
and monitor the contamination of fruit in
EFB
P2 Amount of EFB being Sold Ton 1 To help evaluate the efficiency of EFB Monthly Purchasing Weighing/ Scale
utilisation and estimate this value-added
by-product
S1 Unit Market Price of EFB Baht/Ton 1 To help calculate the revenue from selling Monthly Purchasing/ N/A
EFB to external parties or customers Sale
E1 Amount of EFB Used as Biomass Ton 2 To help evaluate the efficiency of EFB Monthly Utility Weighing/ Scale
Fuel (Internal) utilisation internally
W1 Amount of EFB being Disposed Ton 2 To estimate the volume of EFB being Monthly Purchasing Weighing/ Scale
Off disposed offsite or used by plantation
Remark
* - Priority of data collection is classified into two levels: “1” as minimum data requirements and “2” as optional data requirements, based on the criteria mentioned earlier.

4-8
Figure 4.2b Locations of Data Collection in Oil Room (Section#2)
OIL ROOM
Recovered Oil

4-9
Table 4.2b Proposed Data Collection Scheme for Oil Room Section (Section#2)

Frequency
I4 Installed Capacity Ton-FFB 1 To realise the maximum capacity of palm oil Monthly Production Calculation
production
P10 Production Operating Hour Hour 1 To realise the actual operating hours of Daily Production N/A
palm oil production
P3 Production of Crude Palm Oil Ton 1 To monitor the production of CPO. Daily Production Weighing, i.e. the use of weigh bridge
(CPO) This data can be used further for the
analysis of oil yield
P9 Production of Crude Kernel Palm Ton 2 To monitor the production of CKPO. Daily Production Weighing, i.e. the use of weigh bridge
Oil (CKPO) This data can be used further for the
analysis of oil yield
S2 Unit Market Price of CPO Baht/Ton 1 To help calculate the revenue from selling Daily Purchasing N/A
CPO
S9 Amount of Sold CPO Ton 1 To monitor the amount of CPO being sold Daily Accounting Weighing, i.e. the use of weigh bridge
S10 Proceeds from Sold CPO Baht 1 To monitor value of sold CPO. This data is Daily Accounting N/A
used for calculating KPI “yield and loss
values of CPO” (see Table 4.3a)
S13 Amount of Sold CKPO Ton 1 To monitor the amount of CKPO being sold Daily Accounting Weighing, i.e. the use of weigh bridge
S14 Proceeds from Sold CKPO Baht 1 To monitor value of sold CKPO. Daily Accounting N/A
I5 Use of Water m3 1 To monitor the use of water as transport and Daily Production/ Standard Flow Meter
separation media in the production process Utility
L3 Oil Content in Decanter Cake % 1 To trace the oil content contaminated in the Daily QA Lab Analytical Standard Method
decanter cake
L4 Oil Content in Wastewater % 1 To trace the oil content contaminated in the Daily QA Lab Analytical Standard Method
wastewater from the oil room
W2 Generation of Decanter Cake Ton 1 To identify the amount of decanter cake Monthly Production Monthly estimation based on representative
generated from the production and help weighing of decanter cake
manage its disposal

4-10
Frequency
W3 Amount of Decanter Cake being Ton 2 To monitor the amount of decanter cake Monthly Production Weighing/ Scale
Disposed Offsite being disposed offsite
Remark

4-11
Figure 4.2c Locations of Data Collection in Dry Process (Section#3)

4-12
Table 4.2c Proposed Data Collection Scheme for Dry Process Section (Section#3)

Frequency
P4 Generation of Kernel Ton 1 To monitor the production of kernel. Daily Production Weighing, i.e. the use of weigh bridge
This data can be further used for the
analysis of kernel yield
S3 Unit Market Price of Kernel Baht/Ton 1 To help calculate the revenue from selling Daily Purchasing/ N/A
kernel Sale
S11 Amount of Sold Kernel Ton 1 To monitor the amount of kernel being sold Daily Accounting Weighing, i.e. the use of weigh bridge
S12 Proceeds from Sold Kernel Baht 1 To monitor value of sold kernel. This data is Daily Accounting N/A
used for calculating KPI “values of kernel
yield” (see Table 4.3a)
L5 Oil Content in Fibre % 1 To trace the oil content contaminated in Daily QA Lab Analytical Standard Method
fibre
P5 Total Generation of Shell Due to Ton 1 To monitor the amount of shell generated Monthly Production Monthly estimation based on
Shell-Kernel Separation due to shell-kernel separation and this data representative weighing of shell
can be further used to track on the
utilisation of shell as biomass fuel or by-
product for selling
L6 Kernel Content in Shell Due to % 1 To help evaluate the efficiency of separator Daily QA Lab Weighing/ Scale
Shell-Kernel Separation in shell-kernel separation and monitor the
amount of kernel contained in shell using
separator
P6 Amount of Shell being Sold Ton 1 To help evaluate the efficiency of shell Monthly Purchasing Weighing/ Scale
utilisation as by-product for selling
S4 Unit Market Price of Shell Baht/Ton 1 To help calculate the revenue from selling Monthly Purchasing/ N/A
shell to external parities or customers Sale
E2 Amount of Shell Used as Biomass Ton 2 To help evaluate the efficiency of shell Monthly Utility Weighing/ Scale
Fuel (Internal) utilisation as biomass fuel internally

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Frequency
P7 Generation of Fibre Ton 1 To monitor the amount of fibre generated Monthly Production Monthly estimation based on
within a month and this data can be further representative weighing of fibre
used to track on the utilisation of fibre as
either biomass fuel or by-product
P11 Production of Fibre Ton 1 To monitor the amount of fibre produced Daily Production Weighing/ Scale
daily.
P8 Amount of Fibre being Sold Ton 1 To help evaluate the efficiency of fibre Monthly Purchasing Weighing/ Scale
utilisation and estimate this value-added by-
product
S5 Unit Market Price of Fibre Baht/Ton 1 To help calculate the revenue from selling Monthly Purchasing/ N/A
fibre to external parities or customers Sale
E3 Amount of Fibre Used as Ton 2 To help evaluate the efficiency of fibre Monthly Utility Weighing/ Scale or estimation based on the
Biomass Fuel (Internal) utilisation internally within a month generation of fibre
I7 Amount of Fibre Used at Boiler Ton 1 To realise the efficiency of fibre utilisation as Daily Utility Weighing/ Scale or estimation based on the
biomass fuel at boiler daily. This data is daily production of fibre
used for calculating KPI “generation of
steam from boiler operation”
(see Table 4.3a)
W4 Amount of Fibre being Disposed Ton 2 To estimate the volume of fibre being Monthly Purchasing Weighing/ Scale
Offsite disposed offsite or given to others
Remark
* - Priority of data collection is classified into two levels “1” as minimum data requirements and “2” as optional data requirements, based on the criteria mentioned earlier.

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Figure 4.2d Locations of Data Collection in Wastewater Treatment and Biogas System (Section#4)

4-15
Table 4.2d Proposed Data Collection Scheme for Wastewater Treatment and Biogas System Section (Section#4)

Frequency
I6 Chemical Usage for Wastewater kg 1 To monitor the use of chemicals for Monthly Utility Weighting/ Scale
Treatment wastewater treatment
E4 Electricity Consumption for kWh 1 To monitor the electricity consumption for Daily Utility Electricity Meter
Wastewater Treatment wastewater treatment
W5 Generation of Wastewater (Prior m3 1 To identify the amount of wastewater Daily Utility Standard Flow Meter or Estimation by
to being sent for treatment) generated and help the management and Sampling
treatment of this wastewater influent
W6 Influent Wastewater mg/l 1 To provide information on influent quality Weekly QA Lab Analytical Standard Method
Characteristics (BOD) prior to (BOD) and help the estimation of
being passed to the treatment wastewater loading prior to entering the
system treatment system, in order to allow the in-
charge operator to properly control and
maintain the treatment efficiency
W10 Influent Wastewater mg/l 1 To provide information on influent quality Weekly QA Lab Analytical Standard Method
Characteristics (COD) prior to (COD) and help the estimation of
being passed to the treatment wastewater loading prior to entering the
system treatment system, in order to allow the in-
charge operator to properly control and
maintain the treatment efficiency
W7 Treated Wastewater mg/l 1 To provide information on compliance Monthly QA Lab Analytical Standard Method
Characteristics (BOD) at the final status of treated effluent
pond of the treatment system
W11 Treated Wastewater mg/l 1 To provide information on compliance Monthly QA Lab Analytical Standard Method
Characteristics (COD) at the final status of treated effluent
pond of the treatment system
W8 Effluent Characteristics (BOD) mg/l 1 To provide information on effluent quality Weekly QA Lab Analytical Standard Method
from Biogas System (BOD) from biogas system and can be used
to monitor biogas system efficiency

4-16
Frequency
W12 Effluent Characteristics (COD) mg/l 1 To provide information on effluent quality Weekly QA Lab Analytical Standard Method
from Biogas System (COD) from biogas system and can be used
to monitor biogas system efficiency
W9 Generation of Wastewater Ton 2 To help the management and offsite Annually QA Lab Weighing/ Scale
Sludge disposal of wastewater sludge from the
treatment system
E5 Generation of Biogas m3 1 To monitor the amount of biogas generated Daily Utility Gas Flow Meter
from the system. This data can be used to
indicate the efficiency of methane
production
E6 Generation of Electricity from kWh 1 To monitor the amount of electricity Daily Utility Electricity Meter
Biogas System generated from biogas system and this data
can be used to indicate the efficiency of
electricity generation from the biogas
system
S6 Unit Price of Electricity Sold Baht / 1 To help calculate the revenue from selling Daily Utility N/A
from Biogas System kWh electricity from biogas system
E11 Biogas Tank Volume m3 1 To realise the maximum volume of biogas Annually Utility N/A
tank for receiving wastewater from palm oil
production. This data is used for
calculating KPI “organic loading of biogas
system” (see Table 4.3a)
Remark

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Figure 4.2e Locations of Data Collection in Utility (Section#5)
From Threshing
Water
Biomass
UTILITY
E7 Fuel
Steam
Steam Boiler
Turbine
E8 W13 W14
Electricity used or
sold to Grid Diesel Blowdown Emission
E10 Generator
To Sterilisation Digestion
Steam

4-18
Table 4.2e Proposed Data Collection Scheme for Utility Section (Section#5)

Frequency
E7 Generation of Steam from Boiler Ton 1 To help evaluate the efficiency of steam Daily Utility Standard Flow Meter or Estimation by Mass
Operation generation from boiler Balance
E8 Generation of Electricity from kWh 1 To monitor the electricity generation and Daily Utility Electricity Meter
Steam Turbine this data can be used to indicate the
efficiency of electricity generation
E9 Consumption of Electricity kWh 1 To monitor the electricity consumption from Monthly Utility Electricity Meter
Purchased from Provincial the PEA especially when the palm oil mill is
Electricity Authority (PEA) not running and producing its own
electricity
E10 Generation of Electricity from kWh 1 To monitor the electricity generated by the Monthly Utility Electricity Meter
Diesel Generation diesel generator
S7 Expense on the Purchased Baht 1 To monitor an operating cost arising from Monthly Purchasing N/A
Electricity from the PEA the purchase of electricity from the PEA
S16 Average Cost of Purchased Baht / 1 To monitor an average operating cost Monthly Purchasing N/A
Electricity from PEA kWh arising from the purchase of electricity from
the PEA
S8 Expense on the Purchased Diesel Baht 1 To monitor an operating cost arising from Monthly Purchasing N/A
for Diesel Generator (DG) Set the purchase of diesel for DG Set
S17 Average Cost of Purchased Baht/l 1 To monitor an average operating cost Monthly Purchasing N/A
Diesel for DG Set arising from the purchase of diesel for DG
Set
W13 Boiler Stack Emissions mg/l 2 To monitor characteristics of stack emissions Every Six Utility Analytical Standard Method
Characteristics (Particulate) and evaluate legal compliance Months
W14 Boiler Stack Emissions mg/l 2 To monitor characteristics of stack emissions Every Six Utility Analytical Standard Method
Characteristics (NOx) and evaluate legal compliance Months
Remark

4-19
Table 4.2f Proposed Data Collection Scheme for Internal Control Values

Frequency
L7 Efficiency of Decanter-Separator % 1 To benchmark performance of decanter- Annually Production Production manager responses for setting
System separator system and to improve or correct Manager this internal control value
production performance. This data is also
used as internal control value for
calculating KPI “amount and value of oil
loss” (see Table 4.3a)
L8 Usual Oil Content in Wastewater % 1 To benchmark performance of production Annually Production Production manager responses for setting
process especially in oil room section and to Manager this internal control value
improve or correct production performance.
This data is also used as internal control
value for calculating KPI “amount and
value of oil loss” (see Table 4.3a)
L9 Usual Kernel Loss in Separation % 1 To benchmark performance of separation Annually Production Production manager responses for setting
Process process and to improve or correct Manager this internal control value
production performance. This data is also
used as internal control value for
calculating KPI “amount and value of kernel
L10 Usual Oil Content in Fibre % 1 To benchmark performance of palm oil Annually Production Production manager responses for setting
production process and to improve or Manager this internal control value
correct production performance. This data
is also used as internal control value for
calculating KPI “amount and value of oil
Remark
* - Priority of data collection is classified into two levels: “1” as minimum data requirements.

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4.3 DATA PROCESSING
In order to enhance business advantage and eco-efficiency of the palm oil mill,
“Priority 1” data listed in the previous section are required to be processed and
transformed into information or key performance indicators using MIS
software that can allow the management of native starch factories to use such
information for their own analysis and making decision.
Table 4.3a illustrates these management information (or key performance

indicators), data calculation formula, and their definitions, whereas Table 4.4a
in the next section suggests on whom the management information are
reported to, and also the reporting frequency.

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Table 4.3a Management Information derived from Data Processing
No Key Performance Reference Calculation Formula Unit Description

Indicator Timeframe
Primary Production Process (Section#1)
PPP1 Average Unit Cost of Daily [Expense on FFB Purchased / [C1 / I1] Baht/Ton-FFB The total cost of FFB purchased in each buy
Acquired FFB Amount of FFB Purchased] depends on the quality of FFB (ripe or unripe).
Average unit cost of acquired FFB represents the
overall quality of FFB being purchased as a whole
in each day.
PPP2 FFB Quality Index Daily [(Average Unit Cost of FFB – Unit [(PPP1 – C3) / (C2 – C3)] % FFB quality index represents the utilisation of good
Cost of Unripe FFB) / (Unit Cost of X 100 and consistent quality FFB for palm oil production.
Ripe FFB – Unit Cost of Unripe The higher the index is, the better quality (also
FFB)] X 100 consistency) of the FFB is purchased for the
production.
PPP3 Generation of EFB Monthly [EFB Generated / FFB Used] X 100 [P1 / ∑MI2] X 100 % The ratio of EFB generated per the amount of FFB
used indicates the generation rate of EFB and
efficiency of the threshing process.
PPP4 Share of EFB Sold Monthly [EFB Sold / EFB Generated] X 100 [P2 / P1] X 100 % EFB is typically used for plantation such as
mushroom cultivation. Due to an increase demand
of biomass fuel, this EFB can be sold. Saleable EFB
represents the utilisation of EFB as value-added by-
product.
PPP5 Value of EFB Sold Monthly [EFB Sold X Unit Market Price of [P2 X S1] Baht The amount of money in Baht that is generated
EFB] from EFB being sold to external parties or
customers.
Oil Room (Section#2)
OIL1 Crude Palm Oil Daily [CPO Produced / FFB Used] X 100 [P3 / I2] X 100 % Crude palm oil leaving the oil room indicates the
(CPO) Yield overall oil yield of the mill and is an important
performance indicator of the palm oil mill.

4-22
Indicator Timeframe
OIL2 Value of CPO Yield Daily [(CPO Produced X Proceeds from [(P3 X S10) / (S9 X I2)] Baht/Ton-FFB The amount of money in Baht that is generated
Sold CPO) / (Amount of Sold CPO from produced CPO.
X FFB Used)]
OIL3 Value Added From Daily [Unit Market Price of CPO – (CPO [S2 - (OIL1 X PPP1)] Bath/Ton-FFB This figure indicates the value added from FFB to
FFB to CPO Yield X Average Unit Cost of CPO. Operating cost is not taken into account for
Acquired FFB)] this figure.
OIL4 Generation of Monthly [Decanter Cake Generated / FFB [W2 / ∑MI2] X 100 % The ratio of decanter cake generated per the
Decanter Cake Used] X 100 amount of FFB indicates the generation rate of
decanter cake and efficiency of the decanting
process.
OIL5 Oil Loss in Decanter Daily, [% Oil Content in Decanter Cake - % [L3 - L7] % Oil loss or gained in decanter cake represents or
Cake (1) Monthly Efficiency of Decanter-Separator reflects the efficiency of the decanter-separator
System] system.
OIL6 Value of Oil Loss in Daily, [(% Oil Content in Decanter Cake - [(L3 - L7) X W2 X Baht/Day The value of oil loss/gain in decanter cake is the
Decanter Cake (1) Monthly % Efficiency of Decanter-Deparator (∑S10/S9)] amount of money in Baht that is lost or gained
System) X Decanter Cake Generated based on the contamination of oil in the decanter
X (Summation of Proceeds from cake.
Sold CPO / Amount of Sold CPO)]
OIL7 Oil Loss in Daily, [% Oil Content in wastewater - % [L4 - L8] % Oil loss or gained in wastewater stream indicates
Wastewater (1) Monthly Usual Oil Content in Wastewater] oil room efficiency including the efficiency of
decanter-separator system. This indicator is a
typical and important performance indicator in the
palm oil mill.
OIL8 Value of Oil Loss in Daily, [((%Oil Content - % Usual Oil [((L4 - L8) X ∑W5) X Baht/Day The amount of money in Baht that is lost or gained
Wastewater (1) Monthly Content in Wastewater) X (∑S10/S9)] based on the contamination of oil in the wastewater
Wastewater Generated X stream.
(Summation of Proceeds from Sold
CPO / Amount of Sold CPO)]

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Indicator Timeframe
OIL9 Water Consumption Daily, [Water Used / FFB Used] [I5 / I2] m3-Water/ Since water is an important transport and
Monthly Ton-FFB separation media in the palm oil production
process, the ratio of water consumed per the
amount of FFB can indicate the utilisation of water
in the production process.
OIL10 Capacity Utilisation Monthly [FFB Used / Installed Capacity] X [∑M I2 / I4] X 100 % This indicator demonstrates the actual production
100 capacity. The higher percentage of capacity
utilisation is, the more utilisation of installed
machine is.
Dry Process (Section#3)
DRY1 Kernel Yield Daily [Kernel Produced / FFB Used] X [P4 / I2] X 100 % Kernel production rate indicates the overall kernel
100 yield of the mill and is one of the important
performance indicators of the palm oil mill.
DRY2 Value of Kernel Yield Daily [(Kernel Produced / FFB Used) X [(∑P4 / ∑I2) X (∑S12 / Baht/Ton-FFB The value of Kernel yield is the amount of money
(Summation of Proceeds from Sold S11)] in Baht that is generated from kernel being
Kernel / Amount of Sold Kernel)] produced.
DRY3 Total Generation of Monthly [Shell Generated Due to Shell- [P5 / ∑M I2] X 100 % Shell is typically by product of palm oil mill. The
Shell Due to Shell- Kernel Separation / FFB Used] X generation of shell indicates overall proportion of
Kernel Separation 100 shell generated from FFB being used in production
process. This indicator can be used further to track
on the utilisation of shell as by-product.
DRY4 Total Kernel Loss (1) Daily [% Kernel Content - % Usual Kernel [L6 - L9] % Kernel loss or gained in separation or cyclone
(Shell-Kernel Loss in Separation Process] indicates the efficiency of shell-kernel separation
Separation) process.
DRY5 Value of Total Kernel Daily, [((% Kernel Content - % Usual [((L6 - L9) X P5) X (∑S12 Baht/Day The amount of money in Baht that is lost or gained
Loss (1) (Shell-Kernel Monthly Kernel Loss in Separation Process ) / S11)] based on the kernel content in shell-kernel
Separation) X Shell Generated Due to Shell- separation process.
Kernel Separation X (Summation of
Proceeds from Sold Kernel /
Amount of Sold Kernel)]

4-24
Indicator Timeframe
DRY6 Shell Sold/ FFB Used Monthly [Shell Sold / FFB Used] x 100 [P6 / ∑M I2] Ton/Ton-FFB As shell is typically used as biomass fuel in power
and cement plants, this material is considered as
by-product and is generally sold. This index
represents the amount of shell that can be sold
compared to the amount of FFB used.
DRY7 Value of Shell Sold Monthly [(Shell Sold X Unit Market Price of [(P6 X S4) / ∑MI2] Baht/Ton-FFB The amount of money in Baht that is generated
Shell) / FFB Used] from palm shell being sold to external parties or
customers.
DRY8 Generation of Fibre Monthly [Fibre Generated / FFB Used] X 100 [P7 / ∑M I2] X 100 % Fibre is typically by product of palm oil mill. The
generation of fibre indicates overall proportion of
fibre generated from FFB being used in production
process within a month. This indicator can be
further used to track on the utilisation of fibre as
by-product.
DRY9 Oil Loss in Fibre (1) Daily, [% Oil Content in Fibre - % Usual [L5 - L10] % Oil loss or gained in fibre represents or reflects the
Monthly Oil Content in Fibre] efficiency of decanter-separator system.
DRY10 Value of Oil Loss in Daily, [((% Oil Content - % Usual Oil [(L5 - L10) X P7 X (∑S10 Baht/Day The value of oil loss/gain in fibre is the amount of
Fibre (1) Monthly Content in Fibre) X Fibre Generated / S9)] money in Baht that is lost based on the
X (Summation of Proceeds from contamination of oil in the fibre.
Sold CPO / Amount of Sold CPO)]
DRY11 Share of Fibre Sold Monthly [Fibre Sold / Generation of Fibre] X [(P8 / P7) X 100] % Excess fibre is typically generated during peak
100 production periods. Due to an increase demand of
biomass fuel, this excess amount can be sold.
Saleable fibre indicates the utilisation of fibre as
value-added by-product.
DRY12 Value of Fibre Sold Monthly [(Fibre Sold X Unit Market Price of [(P8 X S5) / ∑MI2] Baht/Ton-FFB The value of fibre sold is the amount of money in
Fibre) / FFB Used] Baht that is generated from fibre being sold to
external parties or customers.

4-25
Indicator Timeframe
Wastewater Treatment and Biogas System (Section#4)
WAS1 Generation of Daily, [Wastewater Generated / FFB [W5 / I2] m3/Ton-FFB Environmental impact from palm oil mills is
Wastewater (Influent Monthly Used] mainly from wastewater generated in the
to the treatment production process and its associated pollution
system) load. This figure therefore indicates the need for
wastewater treatment and reflects overall water
utilisation efficiency.
WAS2 Wastewater Monthly [(Influent Wastewater [(AveW6 – W7) / % This indicator represents the treatment efficiency of
Treatment Efficiency Characteristics – Treated AveW6] X 100 wastewater treatment plant.
(BOD) Wastewater Characteristics) /
Influent Wastewater
Characteristics] X 100
WAS3 Wastewater Monthly [(Influent Wastewater [(AveW10 – W11) / % This indicator represents the treatment efficiency of
Treatment Efficiency Characteristics – Treated AveW10] X 100 wastewater treatment plant.
(COD) Wastewater Characteristics) /
Influent Wastewater
Characteristics] X 100
WAS4 Organic Loading of Weekly [(Influent Wastewater [(W6 X W5) kg/ m3 of Organic loading of biogas system indicates how
Biogas System Characteristics X Wastewater / E11] / 1,000 Biogas Tank much organic load enters into the system and
Generated) / Biogas Tank Volume] Volume / Day represents whether organic loading feeding to the
/ 1,000 system is over the design value.
WAS5 COD Removal by Weekly [(Influent Wastewater [(AveW10 – AveW12) / % This indicator represents the COD removal
Biogas System Characteristics - Treated AveW10] X 100 efficiency of the biogas system.
Wastewater Characteristics from
Biogas System) / Influent
Wastewater Characteristics] X 100
WAS6 Generation of Biogas Daily, [Biogas Generated / Wastewater [E5 / W5] m3 Biogas / m3 Biogas generation indicated how much biogas is
Monthly Generated] Wastewater generated by wastewater per unit. This value
represents the biogas system efficiency.

4-26
Indicator Timeframe
WAS7 Generation of Daily, [Electricity Generated from Biogas [E6 / E5] kWh/m3 - The ratio of the amount of electricity generated
Electricity from Monthly System / Biogas Generated] Biogas from biogas system per biogas volume indicates
Biogas System efficiency of electricity generation from the system.
WAS8 Saleable Electricity Daily, [Electricity Generated X Unit Price] [E6 X S6] Baht/Day The amount of money in Baht from electricity
from Biogas System Monthly generation from the biogas system that is sold.
Utility (Section#5)
UTL1 Generation of Steam Daily, [Steam Generated / Amount of [E7 /I7] Ton-Steam/ Fibre is typically used as biomass fuel for boiler to
from Boiler Operation Monthly Fibre Used at Boiler] Ton-Fibre produce steam to be used in the production
process. Steam generation per the use of fibre
reflects on optimum boiler design and operation
and is important for energy efficiency of the palm
oil mill.
UTL2 Total Electricity Monthly [Electricity-Steam Turbine + [∑ME8 + E9 + E10] kWh Total electricity consumption of the whole palm oil
Consumption Electricity-PEA + Electricity-Diesel mill comes from various sources comprising
Generator] electricity generation from the steam turbine and
diesel generator as well as the electricity purchased
from the Provincial Electricity Authority (PEA).
Total consumption reflects average electricity
required for all production process.
UTL3 Total Electricity Monthly [(Electricity-Steam Turbine + [(∑ME8 + E9 + E10) / kWh/Ton-FFB Total electricity consumption of the whole palm oil
Consumption Rate Electricity- PEA + Electricity-Diesel ∑M I2] mill comes from various sources comprising
Generator)/ FFB Used] electricity generation from the steam turbine and
diesel generator as well as the electricity purchased
from the Provincial Electricity Authority (PEA).
Total consumption rate reflects average electricity
required for one Ton of FFB.

4-27
Indicator Timeframe
UTL4 Electricity Monthly [Electricity Generated / Total [∑ME8 / UTL2] X 100 % Electricity is generally self-generated from steam
Consumption from Electricity Consumption] X 100 turbine of the oil mill and is fully consumed in the
the Steam Turbine oil mill. This electricity consumption rate
Generation represents the utilisation of electricity generated
from steam turbine and can also contribute to the
efficiency of the steam turbine.
UTL5 Electricity Monthly [Electricity Consumed from PEA / [E9 / UTL2] X 100 % Electricity is sometimes supplied from the PEA and
Consumption from Total Electricity Consumption] X this consumption rate reflects the total purchased
the Provincial 100 electricity from PEA and the efficiency of other
Electricity Authority electricity generators (steam turbine, diesel
(PEA) generator and biogas system). This can also
contribute to the sufficiency of electricity generated
within factory.
UTL6 Electricity Monthly [Electricity Generated from Diesel [E10 / UTL2] X 100 % Electricity from diesel generator is required for the
Consumption from Generator / Total Electricity oil mill, especially during the startup of boiler and
Diesel Generator Consumption] X 100 this consumption rate reflects the performance of
boiler especially during the startup. The less
percentage of the index, the better performance of
boiler is.
Remarks
(1) - The amount of kernel and oil loss/gained depends on internal control value of individual palm oil mill factory.
(2) – Use particular indicator from previous month

4-28
4.4 INFORMATION REPORTING & ANALYSIS
Minimum data requirements or “Priority 1” data need to be processed into key

performance indicators to assist management representatives of palm oil mills in
decision making. Apart from the defined key performance indicators, some of
“Priority 1” data can also provide valuable indicators to the management such as
daily use of fresh fruit bunches (FFB), daily production of products, unit costs and
prices of those materials, as well as data that are required to be reported to the
Department of Industrial Works (i.e. treated wastewater and usage of chemical
and electricity for wastewater treatment).
Information in various aspects can become important to different groups of people

in the organisation. Typical interested management personnel in the palm oil
mills are factory owner, factory manager, production manager and utility
manager.
Management personnel of the palm oil mills may require different information.
Typical reporting contents for each management personnel are addressed below
(It should be noted that the needs of information by these personnel have been
established base on the interviews with management representatives of selected
palm oil factories).
Owner
• CPO Yield
• Value of CPO Yield
• CPO Production
• Value Added From FFB to CPO
• Unit Market Price of CPO
• Amount of Sold CPO
• Proceeds from Sold CPO
• Amount of Sold CKPO
• Proceeds from Sold CKPO
• Production Operating Hour
• Capacity Utilisation
• Kernel Yield
• Kernel Production
• Value of Kernel Yield
• Unit Market Price of Kernel
• Amount of Sold Kernel
• Proceeds from Sold Kernel
• Value of Kernel Losses in Shell-Kernel Separation Processes
• Use of FFB
• Total Expense of FFB
• FFB Quality Index
• Average Unit Cost of Acquired FFB
• Water Consumption
• Shell Sold/ FFB Used
• Share of Saleable By-Products (Fibre and EFB)

4-29
• Value of Saleable By-Products (Shell, Fibre and EFB)
• Oil Losses in the Process (Decanter Cake, Wastewater and Fibre)
• Value of Oil Losses in Process (Decanter Cake, Wastewater and Fibre)
• Generation of Biogas
• Treated Wastewater Characteristics (BOD) at the final pond of the treatment
system
• Treated Wastewater Characteristics (COD) at the final pond of the treatment
system
• Saleable Electricity from Biogas System
• Total Electricity Consumption
• Total Electricity Consumption Rate
• Expenses on Purchased Electricity from the PEA
• Average Cost of Purchased Electricity from the PEA
• Expense on Purchased Diesel for DG Set
• Average Cost of Purchased Diesel for DG Set
• Legal Compliance regarding Treated Wastewater
Factory Manager
• CPO Yield
• CPO Production
• Kernel Yield
• Use of FFB
• Share of Saleable By-Products (Fibre and EFB)
• Value of Saleable By-Products (Shell, Fibre and EFB)
• Generation of By-Products (EFB, Decanter Cake, Shell, Fibre, and Wastewater)
• Production of Fibre

4-30
• Generation of Electricity from Biogas System
• Generation of Steam from Boiler Operation
• COD Removal by Biogas System
system
system
• Electricity Consumption from the Steam Turbine Generation, Provincial
Electricity Authority (PEA) and Diesel Generator
• Expense on Purchased Diesel for Diesel Generator Set
• Average Cost of Purchased Diesel for Diesel Generator Set
Production Manager
• CPO Yield
• CPO Production
• Kernel Yield
• Kernel Losses in Shell-Kernel Separation Processes
• Share of Saleable By-Products (Fibre, and EFB)
• Value of Saleable By-Products (Shell, Fibre, and EFB)
• Use of FFB

4-31
• Generation of By-Products (EFB, Decanter Cake, Shell, Fibre, and Wastewater)
• Production of Fibre
system
system
Utility Manager
• Use of FFB
• Kernel Losses in Shell-Kernel Separation Processes
• Oil Losses in the Wastewater
• Generation of Wastewater
• Generation of Electricity from Biogas System
• Wastewater Treatment Efficiency (BOD)
• Wastewater Treatment Efficiency (COD)
• Influent Wastewater Characteristics (BOD) prior to being sent to the treatment
system
• Influent Wastewater Characteristics (COD) prior to being sent to the treatment
system
• Organic Loading of Biogas System
system
system
• Chemical Usage for Wastewater Treatment
• Electricity Consumption for Wastewater Treatment

4-32
• Expense on Purchased Diesel for Diesel Generator Set
• Average Cost of Purchased Diesel for Diesel Generator Set
A set of the above-mentioned information and reporting frequency to various

interested personnel or management is summarised in Table 4.4a.

4-33
Table 4.4a Summary of Management Information
No Management Information Unit Owner Factory Production Utility Description

Manager Manager
Primary Production Process (Section#1)
PPP1 Average Unit Cost of Acquired Baht/Ton- Daily Daily Daily Daily The total cost of FFB purchased in each buy depends on the quality
FFB FFB of FFB (ripe or unripe). Average unit cost of acquired FFB represents
the overall quality of FFB being purchased as a whole in each day.
PPP2 FFB Quality Index % Daily Daily Daily - FFB quality index represents the utilisation of good and consistent
quality FFB for palm oil production. The more percentage of the
index is, the better quality (also consistency) of the FFB is purchased
for the production.
I2 Use of FFB Ton/Day Daily Daily Daily Daily The use of FFB provides information on daily amount of FFB used
and helps production planning for crude palm oil.
PPP3 Generation of EFB % - Monthly Monthly - The ratio of EFB generated per the amount of FFB used indicates the
generation rate of EFB and efficiency of the threshing process.
PPP4 Share of EFB Sold % Monthly Monthly Monthly - EFB is typically used for plantation such as mushroom cultivation.
Due to an increase demand of biomass fuel, this EFB can be sold.
Saleable EFB represents the utilisation of EFB as value-added by-
product.
PPP5 Value of EFB Sold Baht Monthly Monthly Monthly - The value of EFB sold is the amount of money in Baht that is
generated from EFB being sold to external parties or customers.
C1 Total Expense of FFB Baht Daily Daily Daily - Daily expense of FFB being purchased can be used to calculate daily
average cost of FFB being purchased.
Oil Room (Section#2)
OIL1 Crude Palm Oil (CPO) Yield % Daily Daily Daily - Crude palm oil leaving the oil room indicates the overall oil yield of
the mill and is an important performance indicator of the oil mill.
P10 Production Operating Hour Hour Daily Daily Daily Daily Production operating hour indicates the actual time spent on palm
oil production.
P3 CPO Production Ton/Day Daily Daily Daily - Daily production of CPO gives an indication on the total amount of
product that can be sold.

4-34
Manager Manager
S2 Unit Market Price of CPO Baht/Ton Daily Daily Daily - Unit market price of CPO gives an indication to the management on
the demand and pricing of the product.
S9 Amount of Sold CPO Ton Daily Daily Daily - Actual amount of sold CPO gives an indication to the management
on the actual amount of CPO being sold daily
S10 Proceeds from Sold CPO Baht Daily Daily Daily - Proceeds from sold CPO gives an indication to the management on
the values from selling the product.
S13 Amount of Sold CKPO Ton Daily Daily Daily - Actual amount of sold CKPO gives an indication to the management
on the actual amount of CKPO being sold daily
S14 Proceeds from Sold CKPO Baht Daily Daily Daily - Proceeds from sold CKPO gives an indication to the management on
the values from selling the product.
OIL2 Value of CPO Yield Baht/Ton- Daily Daily Daily - The value of CPO yield is the amount of money in Baht that is
FFB generated from CPO being produced.
OIL3 Value Added From FFB to CPO Baht/Ton- Daily Daily Daily - This figure indicates the value added from FFB to CPO. Operating
FFB cost is not taken into account for this figure.
OIL4 Generation of Decanter Cake % - Monthly Monthly - The ratio of decanter cake generated per the amount of FFB indicates
the generation rate of decanter cake and efficiency of the decanting
process.
OIL5 Oil Loss in Decanter Cake (1) % Monthly Monthly Daily - Oil loss or gained in decanter cake represents or reflects the
efficiency of the decanter-separator system.
OIL6 Value of Oil Loss in Decanter Baht/Day Monthly Monthly Daily - The value of oil loss/gain in decanter cake is the amount of money in
Cake (1) Baht that is lost or gained based on the contamination of oil in the
decanter cake.
OIL7 Oil Loss in Wastewater (1) % Monthly Monthly Daily Daily Oil loss or gained in wastewater stream indicates oil room efficiency
including the efficiency of decanter-separator system. This indicator
is a typical and important performance indicator in the palm oil mill.
OIL8 Value of Oil Loss in Wastewater Baht/Day Monthly Monthly Daily - The value of oil loss/gain in wastewater is the amount of money in
(1) Baht that is lost or gained based on the contamination of oil in the
wastewater stream.

4-35
Manager Manager
OIL9 Water Consumption m3-Water/ Monthly Monthly Daily Daily Since water is an important transport and separation media in the
Ton-FFB palm oil production process. The ratio of water consumed per the
amount of FFB can indicate the utilisation of water in the production
process.
OIL10 Capacity Utilisation % Monthly Monthly Monthly - This indicator indicates the actual production capacity. The higher
percentage of capacity utilisation is, the more utilisation of installed
machine is.
Dry Process (Section#3)
DRY1 Kernel Yield % Daily Daily Daily - Kernel production rate indicates the overall kernel yield of the mill
and is one of the important performance indicators of the oil mill.
P4 Kernel Production Ton/Day Daily Daily Daily - Daily production of kernel gives an indication on the total amount of
product that can be sold.
S3 Unit Market Price of Kernel Baht/Ton Daily Daily Daily - Unit market price of kernel gives an indication to the management
on the demand and pricing of the product.
S11 Amount of Sold Kernel Ton Daily Daily Daily - Actual amount of sold kernel gives an indication to the management
on the daily amount of kernel being sold.
S12 Proceeds from Sold Kernel Baht Daily Daily Daily - Proceeds from sold kernel gives an indication to the management on
the values from selling the by-product.
DRY2 Value of Kernel Yield Baht/Ton- Daily Daily Daily - The value of Kernel yield is the amount of money in Baht that is
FFB generated from kernel being produced.
DRY3 Total Generation of Shell Due to % - Monthly Monthly - Shell is typically by product of palm oil mill. The generation of shell
Shell-Kernel Separation indicates overall proportion of shell generated from FFB being used
in production process. This indicator can be further used to track on
the utilisation of shell as by-product.
DRY4 Kernel Loss (1) (Shell-Kernel % - - Daily Daily Kernel loss or gained in dry separation or cyclone indicates the
Separation) efficiency of shell-kernel separation process.
DRY5 Value of Kernel Loss (1) (Shell- Baht/Day Monthly Monthly Daily - The value of Kernel loss/gain is the amount of money in Baht that is
Kernel Separation) lost or gained based on the kernel content in shell-kernel separation
process.

4-36
Manager Manager
DRY6 Shell Sold/ FFB Used Ton/Ton- Monthly Monthly Monthly - As shell is typically used as biomass fuel in power and cement
FFB plants, this material is considered as by-product and is generally
sold. This index represents the amount of shell that can be sold
compared to the amount of FFB used.
DRY7 Value of Shell Sold Baht/Ton- Monthly Monthly Monthly The value of shell sold is the amount of money in Baht that is
FFB generated from palm shell being sold to external parties or
customers.
DRY8 Generation of Fibre % - Monthly Monthly - Fibre is typically by product of palm oil mill. The generation of fibre
indicates overall proportion of fibre generated from FFB being used
in production process within a month. This indicator can be further
used to track on the utilisation of fibre as by-product.
P11 Production of Fibre Ton - Daily Daily - Fibre is typically by product of palm oil mill. This data indicates the
actual amount of fibre produced daily.
DRY9 Oil Loss in Fibre (1) % Monthly Daily Daily - Oil loss or gained in fibre represents or reflects the efficiency of
decanter-separator system.
DRY10 Value of Oil Loss in Fibre (1) Baht/ Day Monthly Daily Daily - The value of oil loss in Fibre is the amount of money in Baht that is
lost based on the contamination of oil in the fibre.
DRY11 Share of Fibre Sold % Monthly Monthly Monthly - Excess fibre is typically generated during peak production periods.
Due to an increase demand of biomass fuel, this excess amount can
be sold. Saleable fibre indicates the utilisation of fibre as value-
added by-product.
DRY12 Value of Fibre Sold Baht/Ton- Monthly Monthly Monthly - The value of fibre sold is the amount of money in Baht that is
FFB generated from fibre being sold to external parties or customers.
Wastewater Treatment and Biogas System (Section#4)
WAS1 Generation of Wastewater m3/Ton-FFB - Monthly Monthly Daily Environmental impact from palm oil mills is mainly from
(Influent to the treatment wastewater generated in the production process and its associated
system) pollution load. This figure therefore indicates the need for
wastewater treatment and reflects overall water utilisation efficiency.
WAS2 Wastewater Treatment % - - - Monthly This indicator represents the treatment efficiency of wastewater
Efficiency (BOD) treatment plant.

4-37
Manager Manager
WAS3 Wastewater Treatment % - - - Monthly This indicator represents the treatment efficiency of wastewater
Efficiency (COD) treatment plant.
WAS4 Organic Loading of Biogas kg/ m3 of - - - Weekly Organic loading of biogas system indicates how much organic load
System Biogas Tank enters into the system and represents whether organic loading
Volume feeding to the system is over the design value.
WAS5 COD Removal by Biogas System % - Weekly Weekly Weekly This indicator represents the COD removal efficiency of the biogas
system.
WAS6 Generation of Biogas m3 Biogas / Monthly Monthly Monthly Daily Biogas generation indicated how much biogas is generated by
m3 wastewater per unit. This value can be used to represent the biogas
Wastewater system efficiency.
I6 Chemical Usage for Wastewater kg/Month - - - Monthly The amount of chemicals usage for wastewater treatment provides
Treatment an indication of proper treatment. This data is one of the data
required for reporting to the Department of Industrial Works.
E4 Electricity Consumption for kWh/Day - - - Daily The amount of electricity consumption for wastewater treatment
Wastewater Treatment indicates the functioning of wastewater treatment system. This data
is one of the data being required for reporting to the Department of
Industrial Works.
W6 Influent Wastewater mg/l - - - Monthly Influent characteristics of wastewater provides information on
Characteristics (BOD) prior to influent quality and help the estimation of wastewater loading prior
being sent to the treatment to entering the treatment system, in order to allow the in-charge
system operator to properly control and maintain the treatment efficiency
W10 Influent Wastewater mg/l - - - Monthly Influent characteristics of wastewater provides information on
Characteristics (COD) prior to influent quality and help the estimation of wastewater loading prior
being sent to the treatment to entering the treatment system, in order to allow the in-charge
system operator to properly control and maintain the treatment efficiency
W7 Treated Wastewater mg/l Monthly Monthly Monthly Monthly Quality of treated wastewater at the last pond provides information
Characteristics (BOD) at the on compliance status of treated effluent.
final pond of the treatment
system

4-38
Manager Manager
W11 Treated Wastewater mg/l Monthly Monthly Monthly Monthly Quality of treated wastewater at the last pond provides information
Characteristics (COD) at the on compliance status of treated effluent.
final pond of the treatment
system
WAS7 Generation of Electricity from kWh/m3 - - Monthly - Daily The ratio of the amount of electricity generated from biogas system
Biogas System Biogas per biogas volume indicates efficiency of electricity generation from
the system.
WAS8 Saleable Electricity from Biogas Baht/Day Monthly Monthly - Daily Saleable electricity from biogas system is the amount of money in
System Baht obtained from the sale of electricity generated from the biogas
system.
Utility (Section#5)
UTL1 Generation of Steam from Boiler Ton-Steam/ - Monthly Daily Daily Fibre is typically used as biomass fuel for boiler to produce steam to
Operation Ton-Fibre be used in the production process. Steam generation per the use of
fibre reflects on optimum boiler design and operation and is
important for energy efficiency of the palm oil mill.
UTL2 Total Electricity Consumption kWh Monthly Monthly Monthly Monthly Total electricity consumption of the whole palm oil mill comes from
various sources comprising electricity generation from the steam
turbine and diesel generator as well as the electricity purchased from
the Provincial Electricity Authority (PEA). Total consumption
reflects average electricity required for all production process.
UTL3 Total Electricity Consumption kWh/ Monthly Monthly Monthly Monthly Total electricity consumption of the whole palm oil mill comes from
Rate Ton-FFB various sources comprising electricity generation from the steam
turbine and diesel generator as well as the electricity purchased from
the Provincial Electricity Authority (PEA). Total consumption rate
reflects average electricity required for one Ton of FFB.
UTL4 Electricity Consumption from % - Monthly Monthly Monthly Electricity is generally self-generated from steam turbine of the oil
the Steam Turbine Generation mill and is fully consumed in the oil mill. This electricity
consumption rate represents the utilisation of electricity generated
from steam turbine and can also contribute to the efficiency of the
steam turbine.

4-39
Manager Manager
UTL5 Electricity Consumption from % - Monthly Monthly Monthly Electricity is sometimes supplied from the PEA and this
the Provincial Electricity consumption rate reflects the total purchased electricity from PEA
Authority (PEA) and the efficiency of other electricity generators (steam turbine,
diesel generator and biogas system). This can also contribute to the
sufficiency of electricity generated within factory.
UTL6 Electricity Consumption from % - Monthly Monthly Monthly Electricity from diesel generator is required for the oil mill, especially
Diesel Generator during the startup of boiler and this consumption rate reflects the
performance of boiler especially during the startup. The less
percentage of the index, the better performance of boiler.
S7 Expense on the Purchased Baht/Month Monthly Monthly - Monthly The money spent on the purchased electricity from the PEA is one of
Electricity from the PEA the important operating costs of the mill.
S16 Average Cost of Purchased Baht/kWh Monthly Monthly - Monthly The average money spent on the purchased electricity from the PEA
Electricity from PEA is also one of the important operating costs of the mill.
S8 Expense on the Purchased Baht/Month Monthly Monthly - Monthly The money spent on the purchased diesel for boiler startup is one of
Diesel for DG Set the important operating costs of the mill.
S17 Average Cost of Purchased Baht/l Monthly Monthly - Monthly The average money spent on the purchased diesel for boiler startup
Diesel for DG Set is also one of the important operating costs of the mill.
Remarks
(1) - The amount of oil loss/gained depends on internal control value of individual palm oil mill factory.

4-40
References
REFERENCES
Agricultural Economic Office, Ministry of Agriculture (2005) 2004 Agricultural

Statistics of Thailand http://www.oae.go.th/statistic/yearbook47/ [Accessed
on 21 October 2005]
Cecelja, Franjo (2001) Manufacturing Information and Data Systems, First Edition :
Analysis, Design and Practice (Manufacturing Engineering Series)
Department of Alternative Energy Development and Efficiency (DEDE) and

Deutsche Gesellschaft für Technische Zusammenarbeit GTZ – GmbH (2004)
Thai-German Program for Enterprise Competitiveness, Eco-efficiency Component,
E3Agro- Project, Desk Study on Palm Oil Industry
Department of Industrial Works (DIW) and German Gesellschaft für

Technische Zusammenarbeit (GTZ) GmbH (1997) Environmental Management
Guideline for Palm Oil Industry
Laudon, Kenneth C. (2005) Management Information Systems : Managing the

Digital Firm (9th Edition), Prentice Hall
Schwalbe, Kathy (2005) Information Technology Project Management, Fourth

Edition
General Information of Palm Oil
Factories from DIW’s Database

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MISGuidelines PalmOilIndustry

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CONTENTS

1 PALM OIL INDUSTRY IN THAILAND 1-1

1.1 BACKGROUND INFORMATION 1-1

2 PALM OIL PRODUCTION PROCESS & MATERIAL FLOWS 2-1

2.1 PALM OIL PRODUCTION PROCESS 2-1

3 MIS INTRODUCTION 3-1

3.1 BACKGROUND 3-1

4 APPLYING MIS PROCESS TO PALM OIL INDUSTRY 4-1

4.1 PRODUCTION PROCESS MODEL 4-1

Table 1.1a Oil Palm Plantation in Thailand 1-2

Figure 1.1a Distribution of Thailand’s Vegetable Oil Production 1-1

AFTA Asean Free Trade Area

The Department of Industrial Works (DIW) is implementing a project on

As part of this MIS Project, ERM-Siam has been commissioned to undertake

Scope of this guideline addresses the application of MIS for eco-efficiency

• To allow management representatives of palm oil factories to realise

• To encourage palm oil factories for collecting and analysing eco-efficiency

• To provide introductory guidance for applying MIS for improving

Contents of this MIS guideline comprise background information on palm oil

Aim of the guideline is to support the development and implementation of

Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

Palm Oil Industry

1.1 BACKGROUND INFORMATION

Palm oil production is one of the important agro-industries in Thailand with

Figure 1.1a Distribution of Thailand’s Vegetable Oil Production

Thailand Vegetable Oil Production 2003

Palm Kernel 11%

Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

Table 1.1a Oil Palm Plantation in Thailand

Province Plantation Area (Rai*)

Source: Agricultural Economic Office, Ministry of Agriculture (2005)

Table 1.1b List of Palm Oil Factories and Milling Capacity

Name of Palm Oil Mill Milling Capacity

Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

Prachuab Khiri Khan

Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

Palm oil production is characterised by the generation of substantial amount

Good environmental management is necessary to ensure sustainability of the

1.2.1 Considerations for Improvements in the Production Process

To avoid excessive generation of free fatty acids from enzymatic activities,

Using inefficient types of equipment, insufficient machinery and plan

Some examples of achieving improved eco-efficiency are shown in Table 1.2a.

Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

Processing Detail Step Prevention and Control Results

Source: Environmental Management Guideline for Palm Oil Industry (1997)

Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

EFB can be used as organic fertiliser and soil conditioner as it maintains

Details of the integrated environmental management approach in palm oil

Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

Product quality requirements by customers have increased in recent years, which

1.3.1 Introduction to Biogas System

1.3.2 Utilisation of By-products as Biomass Fuel

1.3.3 Eco-efficiency Improvement

At present, there are a number of drivers, which encourage industries to pay

Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

Department of Industrial Works MIS Guideline for Eco-efficiency Improvement

Palm Oil Production

2.1 PALM OIL PRODUCTION PROCESS

Details of process are described in the following sections.

Figure 2.1a Standard Palm Oil Mill Process

Fresh Fruit Bunch (FFB)