This chapter contains eight parts.

First part deals with the introduction, a brief

description on the study. Second part deals with the industry profile of chemical industry.
Third part is about the company profile of Travancore Cochin Chemical. Then the fourth is
about the statement of the problem, based on which the objectives were derived. Next part is
about the research methodology adopted for this study. Under methodology, the type of
research, research design, source of data, tools for data collection and the tools for the
analysis is described. Finally the limitations during the study are also enumerated.

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1.1 INTRODUCTION
The project titled A project on Business Business process reengineering Initiatives
and its financial implications with respect to Travancore Cochin Chemicals Ltd,
Udyogamandal, Ernakulam is being conducted with the aim of studying the factors which
causes energy deficiencies in TCC, which is severe and causing serious power loss which in
turn is creating huge financial expense for the organization. So this study is directed to study
in depth about the reasons for the huge power consumption and solutions to be implemented
in order to overcome the existing conditions.
The study conducted in this organisation is done in the operations department, were
the process in the organisation is analyzed for its effectiveness in process and identify the
flaws in the process and effective actions that need to be taken in order to rectify these flaws
was the main objective of the study done.
By conducting the study, it was analysed that there is a huge consumption of electic
power in the organisation and the financial expense that is spent on this is huge and it is
necessary to find out an optimum solution to reduce this consumption. Another pitfall which
came up across during the study was the over consumption of steam for various purpose and
the shortage which it causes due to the overconsumption of steam. The financial expense that
is incurred due to this is also huge and it is also necessary to find out some solutions to
reduce this expense incurred.
The study was done based on one of the prominent theories of management, i.e, using
the Theory of Constraints. The researcher approached the situations and problems as per
prescribed by this theory and at each stages the constraints were identified, analysed and
properly handled with.
The problems were enumerated down and the parameters were correctly identified
during the processes which were contributing to the problems. The clear objectives were laid
out and the descriptive research methodology was followed out for sorting out the problem.
As a part of the real time implementation of the solution which was suggested, a test
apparatus was set up and it was run for understanding the effectiveness of the solution
suggested and since it was found that, running successfully. The organization is in the path of
the real time application of the solution in the organization.

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1.2 INDUSTRY PROFILE

Industry is the overall application of technology and other resources to the generation
economic output by producing goods and services. An industry is any grouping of businesses
that share a common method of generating profits. The industrial revolution led to the
development of factories for the large scale production, with consequent changes in the
society. An industry is an important part of most societies and nations. A government must
have some kind of industrial policy, regulating industrial placement, industrial pollution,
financing and industrial labour. Industrial classification includes major industries like
agricultural industry, chemical industry, manufacturing, mass media, information industry,
construction industry, defence, energy industries etc.
The world economy is developing. This development is accompanied by the
development of various industries as well. A wide variety of products are coming into the
market. These products require many chemicals in the course of its production. Apart from
the production process, chemicals are a major constituent of the product. Hence many
chemical industries producing a wide range of chemicals have come up. A chemical industry
can be defined as a company that produces industrial chemicals. This industry utilizes
chemical processes such as chemical reactions and refining methods to convert raw materialssuch as oil, natural gas, air, water, and minerals into more than 70,000 different products. Salt
is one of the oldest and most popular condiments. What is relatively unknown, is that salt is
also the raw material for one of the most potentially profitable chemical industries in the
country- chlor alkali.
The chlor alkali industry in India is around 60 years old. It began with a modest
capacity of a few thousand tons per annum. In the process of manufacturing chlor alkali some
bye products are assured. For each tone of caustic soda, 860 Kg of chlorine and 25 Kg of
hydrogen will be produced. Some amount of chlorine produced is combined with hydrogen to
make hydrochloric acid. Caustic soda, hydrochloric acid and chlorine are the basic chemicals
and are the basic chemicals and are used by almost all industries. Chemical industry is highly
heterogeneous with following 7 sectors like petrochemicals, inorganic chemicals, organic
chemicals, bulk drugs, agrochemicals, paints and dyes and foreign trade.

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International Scenario
In the international scene, the increased production of paper, aluminium, soap and
detergent naturally leads to increased requirement of caustic soda in the world scenario. The
green peace movement in seeking the phase out of chlorine usage, especially the CFC
compounds. This has resulted in closing down of some of the chlorine industries in Europe
and North American countries. With the drop in international production, the international
price of caustic soda is steadily growing up. The caustic which was sold for 50$/ ton has
grown up to the 300$/ ton now. The international markets are opening in the context of
demand supply prevailing from time to time, situation of surplus and shortage are cyclical as
a result of which international prices tend to be highly volatile. Though the demand for
chlorine is growing fast, the demand of caustic soda is not so promising. Hence the units in
gulf and western countries are selling caustic soda at a cheaper price.
MAJOR COUNTRIES PRODUCING CAUSTIC SODA: USA, France, Russia, China, India,
Germany, Canada, Japan.
Indian Scenario
In India caustic soda is produced by electrolytic process. The manufacture of caustic
soda started during 1940s. The growth was

rather

slow during 1960s but

after

that

the growth picked up substantially. Today there are 38 industries manufacturing caustic soda.
Of which 40 are organized sector and the rest belong to the unorganized sector. The total
installed

capacity

of all

these

units

put

together comes to

about

17,50,000 tones/annum. Indian Chlor-alkali industries follow membrane cell technology

mostly. This is highly beneficial because cell membrane technology is more efficient when
compared to mercury cell technology.
India was a net importer of chemicals in early 1990s, but has now become a net exporter due
to implementation of many large scale petrochemical plants like Reliance, ONGC etc. and
also because of tremendous growth of exports in sectors like bulk drugs and pharmacy,
pesticides, dyes and intermediates.
The Indian Chemical Industry is a significant component of the Indian economy with
revenues at about USD 28 billion. Indian Chemical Industry contributes about 6.7% of
Indian GDP and 10% of total exports. The industry contributes around 20% of national
revenue by way of various taxes and levies. Volume of production by chemical industry
positions India as third largest producer in Asia (next to China and Japan). The chemical
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industry accounts for about 13% share in the manufacturing output. The industry is a vital
part of the agricultural and industrial development in India and has key linkages with
several other downstream industries such as automotive, consumer durables, engineering,
food processing etc. With the current levels of performance the Indian Chemical Industry
ranks twelfth in the world production of chemicals. The chemical industry has achieved a
growth rate of 8.6% over the last few years making it one of the fastest growing sectors in
India. This industrys growth rate has been twice the Asian growth rate over the last five
years. But the asset creation has been the lowest. The Indian Chemical Industry is faced with
multiple challenges. It is emerging from a protected environment into a highly competitive
global market. At the same time the domestic market shows a path to maturity with a high
demand potential for chemical end-products. In terms of consumption, Indian chemical
industry itself is its largest consumer; as the basic chemicals undergo several processing to
manufacture downstream chemicals. The industry accounts for approximately one-third of the
total consumption. Gujarat is the major contributor to the basic chemical as well as
petrochemical production with 54% and 59% share, in all India production, respectively.
Other major states producing basic chemicals include Maharashtra (9%), Tamilnadu and
Uttar Pradesh (6% each). Other major states producing petrochemicals include Maharashtra
(18%), West Bengal (12%), Uttar Pradesh (4%) and Tamil Nadu (3%).
India is also an importer of chemical products. Indias chemical imports are either for
the purpose of further processing in the chemical industry or for usage as intermediates in
other Manufacturing sector. India has been sourcing its imports mainly from China (20% of
Indias total chemical imports), followed by USA (8%), Saudi Arabia (6%), Singapore,
Morocco and Germany (5% each).The Government has been announcing a number of
measures to improve the competitiveness of the Indian chemical industry. These include:
abolition of industrial licensing to most of the chemical sub-sectors, excepting a small list of
hazardous chemicals. The Government is also continuously reducing the list of reserved
chemical items for production in the small scale sector, thereby facilitating greater investment
in technology up gradation and modernization. The Government has initiated policies for
setting up of integrated Petroleum, Chemicals and Petrochemicals Investment Regions
(PCPIR). Such an initiative is likely to attract major investment, both domestic and foreign,
into the regions, which would have enabling infrastructure that would provide conducive and
competitive environment for setting up of manufacturing units. PCPIR would reap the
benefits of co-siting, networking and greater efficiency through use of common infrastructure

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and support services. Such an industrial complex would boost manufacturing activities,
augment exports and generate employment.
Government is a signatory to Chemicals Weapons Convention, which is an universal,
non-discriminatory, multilateral Disarmament Treaty that bans the development, production,
acquisition, transfer, use and stockpile of all chemical weapons. India has passed the
Chemical Weapons Convention Act, 2000, which has come into force in 2005.Indian
Chemical Council (ICC also known as Indian Chemical Manufacturers Association) is the
nodal point / signatory representing India under the Responsible Care Initiative. ICC has
prepared codes, guidance notes for implementation of process safety, employee health and
safety, pollution prevention, emergency response and product safety. ICC is continuously
interacting with regulatory bodies on various issues like emergency preparedness, and safe
transportation of hazardous chemicals. Indian chemical firms have in place technical
agreements with multinational firms to keep abreast of the technological development in the
global chemical industry, and to explore possibilities of adapting the technology to meet the
specific requirements of the Indian market. Such a strategy helped the firms to have
continuous up gradation in technology, resulting in a wide and superior product portfolio.
Strategies have also been adopted by Indian chemical firms to cut down cost of production
through leveraged buy-out for sourcing cost efficient raw materials and solutions for energy
efficiency. Some Indian chemical firms are engaged in continuous research and development
activities to innovate new applications to increase end user segments. Consolidation through
buy-outs of brands and business is another strategy adopted by Indian chemical firms. Indian
chemical firms are leveraging their manufacturing expertise and enter into contract
manufacturing with multinational firms. These include custom manufacturing and private
labelling.
Major south indian chlora-alkali units:
Chemplast, Tamilnadu
Chemfab Alkalies Ltd. Pondicherry
Southern petro Chemical Industries Corp. Ltd. Chennai
Kothari Petro Chemicals Ltd. Chennai
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 Sree Royal Seema Alkalies & Allied Chemicals, Andhra Pradesh

BILT, Karnataka
DCW Ltd, Metur
TCC Ltd, Kerala.

Regional Scenario
Caustic soda is one of the basic inorganic chemicals manufactured from common salt
caustic soda; Hydrochloric acid and sodium hypochlorite are the products. In the Kerala state,
TCC is the only Chlora-Alkali industrial unit and has a production capacity of 175 MT
Caustic Soda per day. There are many small scale industries in the state which consumes
caustic soda for the production of soap, detergents etc. Because of high transportation cost it
is not possible to export caustic soda in large volume from the state. TCC is the only one
chlor alkali unit in the state and it is employing environment friendly and energy efficient
technology. Chlorine is a basic material required for water purification and without chlorine
the water workers will not be able to supply good drinking water to the public.
The Travancore Cochin Chemicals Limited, Udyogamandal is a State Public Sector
Undertaking owned by the Government of Kerala. Reflecting the quality policy of
commitment and excellence.TCC has a good track record of profitable operation and healthy
industrial relations. A heavy chemical industry engaged in the manufacture and marketing of
Caustic Soda, Chlorine and allied chemicals, TCC is accredited with ISO 9001:
2008certification.TCC is hence a mother company. The installed capacity of TCC is
175tons per day caustic soda and the products are used in manufacturing of soaps, textiles,
plastics etc.

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1.3 COMPANY / ORGANIZATION PROFILE

HISTORY OF TCC LIMITED

Seshasayee brothers established the Travancore Mettur Chemicals in 1951(Under
Indian Companies Act 1956) in joint venture with Fertilizers and Chemicals Travancore
Ltd(FACT).Commercial production was started in 1954 with a capacity of 20 TPD Caustic
soda. It has the distinction of manufacturing unique product named Rayon Grade Caustic
Soda. When financial problems happened to the company the then Travancore-Cochin govt
provided financial aid and it was taken over by the govt. Thus it got renamed as Travancore
Cochin Chemicals and subsequently after the independence it was taken over by the Govt of
Kerala and it became a public ltd company. At present its production capacity is 175 TPD
Caustic soda and it plans to expand its capacity to 225 TPD Caustic soda. About 50 crores is
needed for the expansion which will take 2-3 years to complete. The company undertook
expansions in 1961,1964 and 1975 using Mercury cell technology. As Mercury cell
technology is creating problems the company went for the latest technology which resulted in
the shifting of the companys technology from Mercury cell technology to Membrane cell
technology which is an environment friendly technology. Membrane cell technology was
commissioned in 1997 with technical help of ASAHI Glass Co Ltd in Japan. The products of
TCC are Caustic soda, Chlorine, Hydrochloric acid and Sodium Hypo Chlorite. The raw
materials used for the production of these products are Common salt, Electricity and Water.
About 60% of production cost spend by TCC for Electricity. When Mercury cell technology
was used there was a requirement of 3700 units of electricity for producing 1 TPD Caustic
soda. But due to the introduction of Membrane cell technology the consumption got reduced
to 2600 units of electricity for the production of 1 TPD Caustic soda. Common salt is brought
mainly from the salt pans of Tuticorin in Tamilnadu. Water needed for the production is met
from the river Periyar. At present TCCs strength is about 800 workers which comprises of
700 employees

and

100

managerial staff.TCC is accredited with ISO 9001:2008

certification in 2006 and company is planning to go for ISO 14000 certification.TCC is the
only public ltd company manufacturing Caustic soda in India. TCCs competitors are all
private companies.TCC has decided to join hands with Indian Space Research Organisation
(ISRO).Sodium perchlorate is used as fuel in rockets. Sodium chlorate is the essential raw
8 | Page

material for making Sodium perchlorate.TCC and ISRO has signed the deal for the
production and supply of Sodium chlorate.
Initial Investment for the company

Investors

Amount ( in crores)

Govt of Kerala

11.90

KSIDC

8.11

FACT

6.50

Mettur Chemicals Ltd

TOTAL

3.50
30.01

Present Capital Information

Investors
Govt of Kerala

80

KSIDC

17

FACT

Mettur Chemicals Ltd

TOTAL

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% of shares

1
100

Mission Statement

Supply quantity and quality chemicals at competitive prices to customers.

Customer satisfaction and concern for environment & safety.
Utmost level of conservation of all resources.
Cost effectiveness in all operations.
Regular Up gradation of technologies used in processing.

Major Customers of TCC

Hindustan Unilever Ltd (HUL) Kochi, Kerala.

Indian Rare Earths Ltd (IRE) Udyogamandal, Kerala.
Tamilnadu Paper Mills Ltd Pugalur, Tamilnadu.
Pigments India Ltd Chalakudy, Kerala.
Indian Oil Corporation (IOC) Ernakulam, Kerala.
Mysore Paper Mills Ltd Bhadravathy, Karnataka.
Fertilizers and Chemicals Travancore Ltd (FACT) Udyogamandal, Kerala.
Travancore Titanium Products Ltd Trivandrum, Kerala.
Kerala Minerals and Metals Ltd (KMML), Kollam.
Hindustan Zinc Ltd [all units].
Hindalco Ltd Ernakulam, Kerala.
Hindustan Newsprint Ltd (HNL) Kottayam, Kerala.
Kerala Chemicals and Proteins Ltd (KCPL) Kochi, Kerala.
Hindustan Organic Chemicals Ltd (HOC) Ambalamugal, Kerala.
Kerala Water Authority (KWA) Trivandrum, Kerala.
Hindustan Insecticides Ltd (HIL) Udyogamandal, Kerala.
National Thermal Power Corporation (NTPC) [all units].
Binani Zinc Ltd Edayar, Kerala.
Steel Authority of India Ltd (SAIL) [all units].

GROWTH OF TCC
1956
- A continuous caustic fusion plant with a capacity to upgrade 20 tones of caustic soda lye per
day was added.
1958
- A chlorine liquefied plant was added mainly to meet demand from the new plant of
Hindustan Insecticides Ltd.
1960
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- Production of caustic soda was raised to 30 tones.

1963
- The caustic soda capacity was raised to new level of 40 ton per day. The company
established a new unit for the manufacture of sodium hydrosulphate with rated capacity of
thirty ton per day.
1967
- The third stage of expansion of capacity was raised to 60 per day.
1970
- A 60 ton per day caustic soda concentration plant was set up.
1975
- Fourth stage expansion a new 100 ton per day caustic soda plant was setup. The company
set its own water pumping and purifying station.
1975-1980
- Exported commercial hydrochloric acid to gulf countries.
1983
- Installed indigenously developed plant cover mercury from effluents.
1987
- Installed hydrogen firing system.
1988
- Replacement of graphite anodes by titanium anodes.
1990
- Brime de colorization unit commissioned.
1992
- A research and development section was set up.
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1994
- The company is in collaboration with regional laboratory had set up a pilot plant synthetic
retile.
1996
- The company plans to set up a technology for the production of caustic soda collaboration
with SAHI GLASS of Japan with a 100 ton capacity.
1997
- The company commissioned the new membrane technology mid July 1997, with mentioned
capacity of TPD.
2000
- The company set up a brine purification plant.
2001-02
- The Company as commissioned a new continuous caustic fusion plant.
2002-03
- The Company has increased its production capacity of membrane cell plant to 125 TPD (ton
per day).
2004-05
-Additional for either metric ton membrane cell process 25 TPD.

TECHNOLOGY/PRODUCT SPECIFICATIONS:
PRODUCT 1: CAUSTIC SODA
Caustic Soda is a basic alkali entering into the manufacturing of a host of articles of
daily use like soap, paper, and textiles. There are various concentrations available which are

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used by different industries. Using this technology brings about 30% reduction in electrical
power requirements. This is free from pollution hazards of mercury.
PRODUCT 2: CHLORINE
Chlorine, a co-product obtained in the process of manufacturing of Caustic soda is an
equally important basic chemical, inevitable for the manufacture of plastics, textiles& paper,
insecticides, pharmaceuticals etc. It is also renowned water purification chemical.
PRODUCT 3: HYDROCHLORIC ACID & SODIUM HYPOCHLORITE
TCC also produces high-purity Hydrochloric Acid used for manufacture of ossein,
which is exported for edible pharmaceutical application. Another by-product, sodium
hypochlorite, finds its use in bleaching and disinfectant applications and also for extraction of
rare earth materials.
PRODUCT PROFILE
TCC produces wide varieties of products from Caustic soda to sodium
hypochlorite .Various product of TCC are:
1. CAUSTIC SODA (NaoH)
2. CHLORINE (Cl2)
3. HYDRO CHLORIC ACID (Hcl)
4. CAUSTIC SODA FLAKES
5. SODIUM HYPOCHLORITE
Major products and production capacity

PRODUCTS
PRODUCTION TONE PER ANNUM

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TCCs main raw materials are common salt (sodium chloride), electricity and water.
The company requires about 2650 units of electricity and 1.72 tonne of raw salt per tones of
caustic soda produced. Common salt is mainly processed from Gujarat and Tamil Nadu.
1. CAUSTIC SODA (NaoH)
Caustic soda is a basic alkali. It came into being in the latter half of 19th century with
the development of electrolysis. Caustic soda lye, obtained from membrane cell is a clear
colourless, odourless and soapy liquid. TCC is producing two types of caustic lye of
concentration 32% and 50%.These chemicals are known as versatile basic chemical
demanded in various industrial applications. Caustic Soda Lye-from Membrane Cells, A clear
colourless, odourless and soapy liquid.
Technology/Process Description:
The company produces Rayon grade caustic soda using Membrane cell Technology.
The main raw materials are common salt (Nacl) ,electricity and water. Company has three
running plants which are membrane plant, CCF plant and Soda bleach plant. The process
diagram is as follows:
Process Flow Chart for Caustic Soda, Liq. Cl2 & Hcl Production
Membrane Cell Technology: It employs Ion exchange membrane placed between
coated Titanium anode and coated Copper cathode. It requires lower current consumption and
is an environment friendly technology. However the caustic soda lye thus produces is of low
concentration-(32%) compares to the Caustic Soda production in mercury, and the major part
of it is to be further concentrated to 48-50% for use of consuming industries.
Membrane Plant: The plant carries out following operations.
CCF Plant: It is used to concentrate 32% Caustic soda lye to either 50 % Caustic Soda lye or
99% Caustic Soda flakes.
Brine saturation and purification
Electrolysis
Lean brine dechlorination
HCl Synthesis
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Chlorine liquefaction
Specifications (as 100% basis):

Sodium carbonate as Na2CO3 % by mass.(Max) : 0.12

Chloride as NaCl % by mass.(Max) : 0.01

Iron as Fe ppm by mass : 0.60

Specifications (as 50% basis):

Sodium hydroxide as NaOH % by mass : 47-50

Sodium Carbonate as Na2CO3 % by mass(Max) : 0.18

Chloride as NaCl % by mass : 0.015

Iron as Fe ppm by mass : 1.00

Nature of Hazard : Corrosive : Causes severe damage to eyes and skin

Protective Devices : Goggles, Plastic or Rubber Gloves, Apron, Boots

First Aid : If substance has got in to eyes, immediately wash out with plenty of water
for at least 15 minutes.

Uses:
A chemical for dissolving out extraneous matter from wood for preparing pure
cellulose and for the preparation of alkali cellulose and for the production of viscose

solution.
A chemical for preparing pure cellulose by dissolving out extraneous matter.
As saponification agent.
In bleaching, dying and mercerizing.
Reagent for production of various organic chemicals.
A purification agent and absorbent for acidic gases.
A cleaning agent.
For refining petroleum fractions.
For processing monazite and refining of Bauxite.

2. CHLORINE (Cl2)
Chlorine, a co-product obtained in the manufacturing process of caustic soda is an
equally important basic chemical. It is a renowned water purifying chemical. It is a greenish
yellow gas. Chlorine is sold after liquefying. Chlorine has got a pungent smell and liquid
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chlorine is amber in colour. Chlorine another basic chemical is used for the making of
plastics, various organic & inorganic chemicals, petro-chemicals, textile & paper,
insecticides, pharmaceuticals etc. It is the traditional water purification agent. Chlorine and
chlorine compounds in pharmaceutical industry has saved billions of life since its discovery
and use.
Chlorine (IS646/1986):
A greenish yellow gas with characteristic pungent smell. Liquid chlorine is amber in colour
and is one and half times as heavy as water.

Chlorine % by volume (Min): 99.8

Moisture ppm by mass (Max): 150

First Aid:

If substance has got in to eyes immediately wash out with plenty of water

Remove contaminated clothing and drench affected skin with plenty of water

USES
1.
2.
3.
4.
5.
6.

Producing insecticides (DDT, BHC etc) and pesticides.

In purifying drinking water and sterilizing sewage effluents.
For manufacturing PVC and allied co-polymers.
As a bleaching agent.
For producing a variety of organic chlorine compounds.
For upgrading titanium content in ilmonte.

3. HYDROCHLORICACID (Hcl)
Hydro chloric acid produced by TCC is of high purity and finds application in number of
chemical industries and it is yellowish green in colour. The Hcl produced have concentration
30.33%. Made using high quality ingredients, these chemicals comply with the industry
norms and standards. Hydrochloric Acid produced by TCC is of high purity and finds
application in number of chemical industries such as mineral processing, gelatine, food
industry, water treatment etc.

Hydrochloric Acid

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Clear colourless liquid

Specifications:

Hydrochloric acid as HCl % by mass 28.50

Iron as Fe ppm by mass 2 5

Free chlorine ppm by mass (Max.) 50

First Aid:

If the substance has got into the eyes, immediately wash out with plenty of water for
at least 15 minutes.

Remove contaminated clothing immediately and wash affected skin with plenty of
water.

Seek medical treatment when any one has symptoms apparently due to inhalation or
contact with skin or eyes.

USES
1. For the production of ammonium chloride and in the manufacture of phosphoric
acid.
2. In monazite processing for the separation of rare earths as chlorides from thorium.
3. As cleaning agent in galvanizing.
4. For hydrolyzing starch into sugar.

4. SODIUM HYPOCHLORITE
Sodium hypochlorite, commonly known as soda bleach, finds its application in
bleaching as a disinfectant and also in the extraction of rare earth elements. It is a pale
yellowish green colour liquid. Soda bleach is the only branded product that the company is
producing, brand name is Eko clean.
Hypochlorite which is a highly useful industrial chemical. Sodium hypochlorite finds its use
in bleaching and disinfectant applications and also for extraction of rare earth materials.

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Sodium Hypochlorite (Industrial):

Pale yellowish green clear liquid

Available chlorine gpl (min): 110

Excess alkalinity as naoh gpl (min): 10 15

Quantity (mt)/annum: 15000

Sodium Hypochlorite(domestic):
Sodium hypochlorite for domestic application is marketed under the brand name eko clean.
A powerful disinfectant, which also acts as:

Antibacterial

Sporicide

Fungicide

Algae resistant

Mosquito repellent

Disinfectants

Applications:

Best recommended for operation theatres of hospitals, drainage and toilets cleaning
for hospitals, corporations, municipalities, panchayats and other public and private
sanitation purposes.

Found effective for cleaning of swimming pools, water theme parks, fish
processing/agro processing.

Not recommended for fish ponds and fish nurseries.

USES
1. As a bleaching agent.
2. As germicide and cleaning agent.
3. For sterilization.

5. CAUSTIC SODA FLAKES

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Caustic soda lye is concentrated to 98-99% NaoH and converted to flakes in a continuous
caustic fusion plant (CCF). It is a white deliquescent solid in flakes form. This chemical is
mainly used in the preparation of dyes, soaps, detergents, and chemicals.

White deliquescent solid in flakes form

Sodium hydroxide as NaOH % by mass (Min): 99.50

Sodium Carbonate as Na2CO3 % by mass. (Max): 0.40

Chloride as NaCl % by mass (Max): 0.10

Iron as Fe ppm by mass(Max): 20.

USES
-A chemical for dissolving out extraneous matter from wood for preparing pure cellulose and
for the preparation of alkali cellulose and for the production of viscose solution.
-A chemical for preparing pure cellulose by dissolving out extraneous matter.
-As saponification agent.
-In bleaching, dying and mercerizing.
-For processing monazite and refining of Bauxite.
-Reagent for production of various organic chemicals.
-A purification agent and absorbent for acidic gases.
-A cleaning agent.
-For refining petroleum fractions

FUNCTIONAL DEPARTMENTS
The main functional departments of TCC are:PRODUCTION AND OPERATION DEPARTMENT
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HUMAN RESOURCE DEPARTMENT

MARKETING DEPARTMENT
FINANCE DEPARTMENT
TECHNICAL DEPARTMENT
ENGINEERING DEPARTMENT
CIVIL DEPARTMENT
SYSTEMS DEPARTMENT
SECURITY DEPARTMENT
PROJECT DEPARTMENT

PRODUCTION AND OPERATION DEPARTMENT

Operational department is the most important department of TCC. This department
carries out the manufacturing of all the products. The company carries out continuous
production system; hence this department plays a very crucial role in TCC.
Objectives

Reduce non confirming products.

Maximise the availability of electrolyze operation.
Optimizing the specific consumption of electricity, furnace oil and purification
chemical.

Duties and Responsibilities of Operations Manager

Head of the operations department fixes monthly target of the product based on the

market requirement.
He is responsible for the modification in the production process and responsible for

the effluent charges.

Operations Manager has the administrative control over the operations department.
Operations Manager is the designated emergency controller during any hazardous
incident that is leakage or emission of any toxic gas or liquid.

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Assistant General
Manager(Operations)

Plant Manager -I

Plant Manager-II

Deputy Manager
(Production)-I

Deputy Manager
(Production)-II

Senior Engineer
(Production)-I

Senior Engineer
(Production)-II

Plant Engineer-I

Plant Engineer-II

Executive Trainee-I

Executive Trainee-II

Duties and Responsibilities of Plant Manager

Custodian of plant.
Plant Manager will plan production activities to meet the production of target set by

the Operations Manager.

Plant Manager has the administrative control of personnel working in the plant.

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Plant Manager co-ordinates with other managers for the smooth functioning of the

plant.
Plant Manager is responsible for the material consumption.
Plant Manager will plan the shut down activities and carry out maintenance work of
plants.

1.4 STATEMENT OF THE PROBLEM

Energy is an important part of the universe, also energy is considered to be an important
part of an organization, which means 60% of cost is incurred for electricity used for
ptoduction. Here at TCC being one of the major players in the chemical industry, one of the
major raw material which is used for the production is electricity. Electricity being one of the
scarce and vital energy source and since it is the duty to conserve electricity. The study was
done to identify the areas were energy is consumed at its maximum and actions to reduce this
consumption which in turn benefits the organization in monetary terms. In management
terms, there is some serious business business process reengineering need to be done for the
better positioning of the organisation and for achieving and maintaining a strong financial
base and security for the organisation
Two such areas were identified,
Over voltage and electric power consumption in AGC electrolysers and the huge

amount of cost involved with it.

The consumption of steam for preheating the brine solution and the cost which is
incurred with it.

1.5 OBJECTIVES OF THE STUDY

(a) Primary Objective
The primary objective of the entire study is to find out the reasons for the high energy
consumption in TCC.
(b) Secondary Objective
To study about the financial expense incurred due to the high energy

consumption.
To find out the effectiveness of the solutions that was implemented to reduce
the high energy consumption in the organization.

1.6 RESEARCH METHODOLOGY

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To define any research problem and give a suitable solution for the problem, a sound
research is inevitable. Research methodology underlines the various steps involved by the
researcher in systematically solving the problem with the objective of determining various
facts.
Here, during this research, the problem was approached following a descriptive
research manner. In association with the operations department of the organisation, the major
areas in the organisation where there is a huge loss in resources and finance is identified
focussed and the reasons for it were identified using simple observations and by the
measurement of the parameters which are associated with it. The problem was analysed using
one of the vital tool in management studies i.e, using the Theory of Constraints. The possible
solutions for resolving these were enumerated and analysed for the optimum one and which is
executed by trial and error method for its efficiency analysis.
1.6.1 Type of research
The research is of descriptive research type. Descriptive research is used to describe
characteristics of a population or phenomenon being studied. It does not answer questions
about how/when/why the characteristics occurred. Rather it addresses the "what" question
(What are the characteristics of the population or situation being studied?) The
characteristics used to describe the situation or population are usually some kind of
categorical scheme also known as descriptive categories.
1.6.2 Research Design
A research design is the arrangement of conditions for collection and analysis of data
in the manner that combine the relevance to the research purpose with economy in procedure.
It constitutes in the blue print for collection, measurement and analysis of data.
1.6.3 Data collection instrument and procedure:
Based on need and objectives, types of data required for study and other sources of data
are identified. Both Primary as well as Secondary Research Method has been included for
preparing this final report.
a. Primary data:

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The primary data is collected through direct observation method. The whole production
process and working of machines were observed. Data are also collected from the
technicians, electricians, and the engineering heads of the company.
b. Secondary data:
Secondary data is collected from company records, internet, books and machine
manual.
1.6.4 Data analysis tool
The data are analysed using simple arithmetic calculations and different graph
diagrams. Data are explained through graphs and charts.

1.7 SCOPE OF STUDY

Operations have been acting as an effective part of all organization since it developed
as a separate field of study. The modern days of competition the success mantra for any
organization is to implement the most efficient and an updated technology in their operations
as it is utmost necessary for the growth and flourishing of the same in this globalized business
world. Nature being the provider of everything ,converting it into business also makes a lot of
impact if technology is properly implemented, where the success of an organisation always
depend on the efficiency and effectiveness of such implementation of technology. The current
study shows such defect in application of science and technology effectively and the
problems that the company is facing.

1.8 LIMITATIONS OF STUDY

The limitations of the study are the following:
TCC is a large chemical industry; as such accurate data regarding the internal affairs of
the company are not easily available.
The available data is not sufficient to get the desired result.
As a vast coverage is needed for getting the desired results time is a limiting offer
This chapter includes previous studies with respect to business process reengineering
and its effectiveness in various organizations. Different articles from peer reviewed journals
were taken. The literature includes, Theory of Constraints, Business process Reengineering
and Energy savings in Industries. Based on the data obtained suitable variables were
identified for further analysis using primary data

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This chapter deals with various theoretical concepts which are relevant to the study.
Other research studies that are relevant to the current study are also referred to for detailing
the importance of the study. Various theoretical concepts that are relevant to the current study
are identified as:

Theory of Constraints.
Energy savings in Industry
Barriers to Industrial Energy Efficiency

THEORY OF CONSTRAINTS (TOC)

The theory of constraints is an important tool for improving process flows. The
implications of the theory are far reaching in terms of understanding bottlenecks to a process
and better managing these bottlenecks to create an efficient process flow.
The theory of constraints is an important tool for operations managers to manage
bottlenecks and improve process flows. Made famous by Eliyahu M. Goldratt in his
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book The Goal, the implications of the theory are far reaching in terms of understanding
bottlenecks to a process and better managing these bottlenecks to create an efficient process
flow. Simply put the theory states, the throughput of any system is determined by one
constraint (bottleneck). Thus to increase the throughput, one must focus on identifying and
improving the bottleneck or constraint.
Goldratt in another book, Theory of Constraints, outlines a five-step process to applying the
theory:
1.

Identify the process constraints

2.

Decide how best to exploit the process constraints

3.

Subordinate everything else to the above decisions

4.

Evaluate the process constraint

5.

Remove the constraint and re-evaluate the process

Identify

In order to manage a constraint, it is first necessary to identify it. In The Goal, the
NCX10 was identified as the constraint. This knowledge helped the company determine
where an increase in "productivity" would lead to increased profits. Concentrating on a nonconstraint resource would not increase the throughput (the rate at which money comes into
the system through sales) because there would not be an increase in the number of products
assembled. There might be local gains such as a reduction or elimination of the queue of
work-in process waiting in front of the resource. But if that material ends up waiting longer
somewhere else, there will be no global benefit. To increase throughput, flow through the
constraint must be increased.
Exploit
Once the constraint is identified, the next step is to focus on how to get more
production within the existing capacity limitations. Goldratt refers to this as exploiting the
constraint. One example from The Goal was when the company and the labour union agreed
to stagger lunches, breaks, and shift changes so the machine could produce during times it
previously sat idle. This added significantly to the output of the NCX10, and therefore to the
output of the entire plant. To manage the output of the plant, a schedule was created for the

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constraint. The schedule showed the sequence in which orders would be processed and their
approximate starting time.
Subordinate
Exploiting the constraint does not ensure that the materials needed next by the
constraint will always show up on time. This is often because these materials are waiting in
queue at a non-constraint resource that is running a job that the constraint doesn't need yet.
Subordination, which is Step 3, is necessary to prevent this from happening. Subordination
involves significant changes to current (and generally long-established) ways of doing things
at the non-constraint resources.
The most important component of subordination is to control the way material is fed
to the non constraint resources. Conventional wisdom says that if a resource is idle it is losing
money. Conventional practice, then, is to keep efficiencies high by releasing enough material
to keep everyone busy - regardless of whether the constraint can process that much material.
TOC wisdom says that non-constraint resources should only be allowed to process enough
materials to match the output of the constraint. The release of materials is closely controlled
and synchronized to the constraint schedule. In contrast to the constraint, non-constraint
resources do not have a schedule. Workers are instructed to begin immediately when work
arrives at their stations, to work at normal speed (i.e. do not slow down so that work expands
to fill the available time), and immediately pass the finished parts on to the next operation. If
there is no material waiting to be processed, the non constraint resources will be idle, and that
is OK. In fact, preventing non-constraint resources from overproducing is necessary to reach
the goal of making more money, now and in the future.

Elevate
After the constraint is identified, the available capacity is exploited, and the nonconstraint resources have been subordinated, the next step is to determine if the output of the
constraint is enough to supply market demand. If not, it is necessary to find more capacity by
"elevating" the constraint. In The Goal, schedulers were able to remove some of the load
from the constraint by rerouting it across two other machines. They also outsourced some
work and brought in an older machine that could process some of the parts made by the
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NCX10. These were all ways of adding capacity, or elevating the constraint. It is important to
note that to "elevate" comes after "exploit" and "subordinate." Following this sequence
ensures the greatest movement toward the goal of making more money.
Go Back to Step 1
Once the output of the constraint is no longer the factor that limits the rate of fulfilling
orders, it is no longer a constraint. Step 5 is to go back to Step 1 and identify a new constraint
-because there always is one. The five-step process is then repeated.
It may appear that implementing TOC involves a never-ending series of trips through
the five-step process - a kind of tool to assist in more perfectly balancing a production
system. This is not the case. A fundamental principle of the Theory Of Constraints is that the
combination of dependent events (such as the steps in a production system) and normal
variation (which is always present) makes it literally impossible to ever fully balance a line.
There will always be a constraint in the system. What creates chaos is allowing the constraint
to move around. For that reason, companies that get the greatest financial benefit from TOC
are those that make a strategic choice of where they want the constraint to be. They then
manage their entire operation (product design, marketing, capital investment, hiring, etc.)
accordingly. This allows the company to manage the constraint to their advantage rather than
allowing the constraint to manage them.
KEY PRINCIPLES UNDERLYING TOC
Several key principles underlie TOC and, according to Goldratt, converge to make fertile
ground for TOC. A few of these key concepts are worth emphasizing because of their
significance for the management approach used in adopting organizations. The principles
include:

Processes/organizations as chains:

This is crucial to TOC. If processes and

organizations function as chains or flows, the weakest links can be found and
strengthened. The linkages in question can be between the different steps or activities

in a process or between diverse organizations within a supply chain.

Local versus system optima: Because of interdependence and variation, the optimum
performance of a system as a whole is not the same as the sum of all the local optima.
(Local optima are calculated measures for functional areas within an organization.) In

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other words, an organization that maximizes the output of every machine will not
perform as well as one that ensures optimization of the flow of materials and value

created through its linked set of activities.

Cause and effect. All systems operate in an environment of cause and effect. One
event causes another to happen. This cause-and effect relationship can be very
complex, especially in complex systems. Capturing the essence of cause and effect
within the system and identifying measurements that emulate these relationships are

the keys to optimizing system performance.

Physical versus policy constraints. Most of the constraints faced in systems originate
from policies, not physical things. Physical constraints, such as the number of nurses
in a hospital or the number of production machines in a factory, can be objectively
identified and dealt with. Policy constraints (e.g., behaviour patterns, attitudes, lack of
information, and assumptions) are potentially more damaging than physical
constraints, yet are much more difficult to identify and deal with. The belief that
producing in large batches is optimal is an example of a policy constraint that can

make implementing TOC or related advanced manufacturing approaches difficult.

Total system impact. All organizations are systems made up of interdependent
activities, each with its own level and type of variability. In order to optimize
performance, management needs to understand and focus on the total system impact
of a decision or event, not just on its local or immediate effects.

BUSINESS PROCESS REENGINEERING

As the basis of competition changes from cost and quality to flexibility and
responsiveness, the value of process management is now being recognised. The role that
process management can play in creating sustainable competitive advantage was termed
Business process reengineering (PR), and was first introduced by Hammer (1990);
Davenport and Short (1990). These authors outlined a new approach to the management of
processes, which, it was claimed, was producing radical improvements in performance. The
three driving forces behind this radical change are an extension of Porters (Porter, 1980,
1985, 1990) work on competitive advantage, and were summarised by Hammer and
Champy
(1993) as:

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Customers who can now be very diverse, segmented, and are expectant of

consultation,
Competition that has intensified to meet the needs of customers in every niche, and
Change that has become pervasive, persistent, faster and in some markets a prerequisite.

Customers, competition, and change have created a New World for business, such that
organisations designed to operate in one environment are inadequately equipped to operate
well in another. Companies created to thrive on mass production stability, and growth cannot
be simply improved to succeed in a world where customers, competition, and change demand
flexibility and quick response. This is also what Drucker (1969) termed the Age of
Discontinuity or the challenge to the traditional assumptions of business.
Customers, competition, and change have created a New World for business, such that
organisations designed to operate in one environment are inadequately equipped to operate
well in another. Companies created to thrive on mass production stability, and growth cannot
be simply improved to succeed in a world where customers, competition, and change demand
flexibility and quick response. This is also what Drucker (1969) termed the Age of
Discontinuity or the challenge to the traditional assumptions of business. In todays
marketplaces, it is no longer a question of caveat emptor, but rather caveat factor. Customers
today are characterised by their relentless demands in quality, service, and price; by their
willingness to act on default of contract and by their disloyalty. In fact, the new power and
freedom of the customer has destroyed many of the managerial assumptions of the early
Management Revolution (Drucker, 1954). There is no longer unearned brand loyalties, no
more complicity among rivals in the same markets; no more passing on of rising wages and
benefits in the form of higher prices; no more easy reliance on high entry costs to keep out
upstart competitors and reducing protection by national governments. Still, as far as managers
are concerned, the most powerful of the new stakeholders is the customer. The reward for
managers who can earn their respect is not only repeat business but also willing investors.
The aim of reengineering in this environment should be to facilitate the match between
market opportunities and corporate capabilities, and in so doing, ensure corporate growth. To
achieve these goals, downsizing and outsourcing will be by- products of reengineering, but
they do not define reengineering, nor are they the purpose of reengineering.
Internally reengineering functional hierarchies into teams to facilitate work processes
will lead to the elimination of most management layers and will teach managers to do far
more with much less. Druckers (Drucker, 1993) view, and one which we support, is that
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reengineering represents a radical shift away from the tradition in which performance was
primarily rewarded by advancement into managerial ranks, that is, the future holds very few
control positions. In the ideal, hierarchy should disappear from the reengineered company,
and be replaced by the idea of purposeful value added interaction. A change of this magnitude
raises many challenges for those managers left to develop, motivate, reward, and affirm
employees.
The common theme running through reengineered or breakthrough improvements is
technology, in particular information technology (IT). IT represents an all encompassing term
for computer workstations linked to computer networks, open systems, clientserver
architecture, database groupware, and electronic commerce (EC). Together they have opened
up the possibilities for the integrated automation of manual-paper based-business processes.
The advent of computer assisted software engineering (CASE), and object-oriented
programming has helped simplify systems design around office processes (Baets, 1993;
Petrozzo and Stepper, 1994), enabling further cost reductions, and the rapid growth of a new
industry (Venkatraman, 1994). History is replete with technological advances such as the
steam engine, the internal combustion engine, the telephone, the transistor, and the computer
that made possible large step changes in both manufacturing and business processes. So too,
IT is enabling both manufacturing and office processes to be automated and fundamentally
restructured to take advantage of enormous efficiencies in information gathering, storage,
processing, retrieval and presentation. Technology in itself, however, does not offer all the
answers, i.e. automation frequently fails to produce the gains expected. The IT intensive
banking and insurance industries, widely reported to be going through many major PR
exercises, has been shown to be making very little use of the latest IT solutions (Watkins,
1994; Zucco, 1996). Many companies putting in major new computer systems have achieved
only the automation of existing processes. Others have not overhauled their existing IT
hardware, but have expected the new systems to integrate with the old (Watkins et al., 1993).
Davenport (1994) warned that IT systems, the hard side of the organisation, need to match
the soft requirements of the users. Also, many managers do not rely solely on computer based
information to make decisions, and merely changing an IT system will not change a
companys culture, strategy or structure. Studies such as the 1994 CSC Index Survey of US
and European companies (Champy, 1995) have confirmed that up to 70 percent of PR
programmes fail because reengineering programmes have been used as a substitute for
strategic thinking. That is, companies undertaking PR have used IT strategy as a substitute for
an integrated corporate change strategy. The results are typically disastrous, with different
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functions within the same organisation left with IT systems that are incompatible with each
other, and not being used to gain or improve cross structural benefits. Yet it is in the areas of
cross functional, cross-divisional, and cross-company processes that the big improvement
gains through IT are to be achieved (Duffy, 1994). A strategic overview is thus essential to
reengineered process design and the subsequent selection and installation of the hard and soft
systems. It is only with this approach that it becomes possible to automate cross structural
processes (Short and Venkatraman, 1992; Taylor and Williams, 1994).
Business process reengineering Concepts, Implementation and problems:
Business process reengineering definition:
Several authors have provided their own interpretation of the changes being applied to
organisations, for example Davenport and Short (1990) have described PR as the analysis and
design of work flows and processes within and between organisations. Hammer and Champy
(1993) have promoted the fundamental rethinking and radical redesign of business processes
to achieve dramatic improvements in critical, contemporary measures of performance, such
as cost, quality, service, and speed. Other authors such as Talwar (1993) have focused on the
rethinking, restructuring and streamlining of the business structure, processes, methods of
working, management systems and external relationships through which value is created and
delivered. Petrozzo and Stepper (1994) on the other hand, believe that PR involves the
concurrent redesign of processes, organisations, and their supporting information systems to
achieve radical improvement in time, cost, quality, and customers regard for the companys
products and services. While Lowenthal (1994) describes the fundamental rethinking and
redesign of operating processes and organisational structure, the focus is on the organisations
core competencies, to achieve dramatic improvements in organisational performance, as PRs
essential components. Although the definition by Davenport and Short (1990) is much
narrower, their description of the concept is as far-reaching. In practice, both TQM and PR
have focused on the definition and operation of business processes to produce products and
services within a defined business scope. However, neither TQM nor PR have
focused on strategic business direction setting or planning, but of course these may be
necessary components in achieving this vision. Also each methodology, in its own right, does
not have the intention or the capability of reinventing business or industry. More importantly
only one of these definitions refers to information systems. It can thus be said that PR is not
necessarily dependent on IT solutions. There is general agreement that IT can be a powerful
enabler, with the radical improvements sought more a function of organisational process
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redesign, rather than IT implementation (Gadd and Oakland, 1995; Hammer and
Champy, 1993). While IT specialists insist that new systems are central to PR, the challenge
is increasingly one of the implementation of organisational change and the visioning involved
in that change, rather than the technology itself (Wastell etal., 1994). Where there is
confusion, it is in both the interpretation and the scope of the organisational change concept.
Hammer (1990) referred to business business process reengineering, while Davenport and
Short (1990) to business process redesign. While some of these terms are clearly referring to
a generic business process improvement model on a large scale, other authors (Watkins et
al., 1993; Earl and Khan, 1994) point out that reengineering can be performed at a variety
of different levels within the organisation. This is exemplified in IBMs reengineered finance
process, which yielded large percentage improvements in costs, time, and quality, but had
little effect on overall performance, because it was not a core process central to the strategy of
the company (Currid, 1994). Put into strategic context, PR becomes a means of aligning work
processes with customer requirements in an interactive way, in order to achieve long-term
corporate objectives. To achieve this, Senge (1990); Deming (1993) advocate a systems
outlook involving customers, suppliers, and the future. Gulden and Reck (1991) support this
view by showing that the secrets to designing a process lie not so much in intimately
understanding the way it is performed today, but rather in thinking about how to reshape it for
tomorrow.
Hammer and Champy (1993) went further to identify three kinds of companies that
undertake reengineering:

Companies that find themselves in deep trouble. They have no choice. If a companys
costs are an order of magnitude higher than the competitions or than its business
model will allow, if its customer service is so abysmal that customers openly rail
against it, if its product failure rate is higher than the competitions, if in other words,
it needs order-of-magnitude improvement, that company clearly needs business

reengineering,
Companies that are not in trouble but whose management can see trouble coming,
Companies that are in peak condition and see an opportunity to develop a lead over
their competitors.

Business process reengineering tools and techniques:

The various definitions of PR suggest that the radical improvement of processes is the
goal of PR. They do not, however, refer specifically to the tools and techniques used in
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reengineering business processes. The result of this void is that authors and consultants alike
have pursued the use of many different tools in the search for the best reengineering
application. These tools and techniques include the following:
Process visualisation.
While many authors refer to the need to develop an ideal end state for processes to be reengineered, Barrett (1994) suggests that the key to successful reengineering lies in the
development of a vision of the process.
Process mapping/operational method study. Cypress (1994) suggests that the tools of
operational method studies are ideally suited to the reengineering task, but that they are often
neglected. Recent evidence suggests that these concepts have been incorporated into tools
such as IDEF0 (Integrated Definition Method), DFD (Data Flow Diagrams), OOA (Object
Oriented Analysis) (Yu and Wright, 1997), and Prince2 (Process based Project Management,
see internet reference: Prince2).
Change management. Several authors concentrate on the need to take account of the human
side of reengineering, in particular the management of organisational change. Some authors
(e.g. Mumford and Beekma, 1994; Bruss and Roos, 1993) suggest that the management of
change is the largest task in reengineering. Kennedy (1994) on the other hand, incorporate the
human element of reengineering due to the perceived threat it has on work methods and jobs.
Benchmarking. Several authors suggest that benchmarking forms an integral part of
reengineering, since it allows the visualisation and development of processes which are
known to be in operation in other organisations (Harrison and Pratt, 1992; Chang, 1994;
Furey, 1993).
Process and customer focus. The primary aim of PR, according to some authors, is to
redesign processes with regard to improving performance from the customers perspective
(Chang, 1994; Vantrappen, 1992). This provides a strong link with the process improvement
methodologies suggested by authors from the quality field, such as Harrington (1991a). In
some cases, notably Chang (1994), the terminology is almost identical to that used by quality
practitioners in the improvement of processes. The major difference, as outlined earlier,
appears to be one of scale. It should be noted that few authors refer to any single technique
when discussing PR. Most incorporate a mixture of tools, although the nature of the mix
depends on the application, whether it be hard (technological) such as proposed by Teng et al.
(1994) or soft (management of people), as seen from Mumford and Beekma (1994). While
the exact methodologies to be used are the source of some discussion, it can be seen that PR,
as a strategic, cross-functional activity, must be integrated with other aspects of management
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if it is to succeed. This is particularly true since it is not the methodologies themselves, but
rather the way that they are used which is unique in PR (Earl and Khan, 1994). Of particular
interest are the links between PR and TQM. In summary, therefore, PR can be seen to
represent a range of activities concerned with the improvement of processes. While some
authors appear to suggest that tools and techniques are the key, most authors suggest that a
strategic approach to PR, and the development of a PR strategy is the key to success (Guha
et al., 1993; Bruss and Roos, 1993). There seems little doubt in either the literature or in
practice that efforts on the scale of PR must be strategically driven and supported by senior
management if they are to succeed (Gadd and Oakland, 1996; Barrett, 1994; ONeill and
Sohal, 1998).
Understanding organisational processes
Both Deming (1993); Senge (1990) have written about the importance of systems
thinking in understanding workflow, business processes, and the impact of feedback. In any
system, events will occur that have an effect elsewhere in the system, and possibly on the
event itself. In order to have a full understanding of the effects of what is being done, it is
necessary to understand the whole process and how it fits into the organisational system.
IT has the capability of providing the means to achieve breakthrough performances in
organisational systems. The vision, however, must come from understanding both the current
and potential processes. This reality requires a more holistic view than that taken in
traditional TQM programmes (Chang, 1994; Petrozzo and Stepper, 1994). The changes
documented by Hammer (1990) at Ford, and by Davenport and Short (1990) at Xerox,
involved radical redesign of the processes concerned. Cranswick (1994) reports that many
Australian companies have undergone similar radical redesigns, such as the following
examples:

FAI Insurances extensive use of IT is only a small part of its total reengineering
process. It is used primarily to facilitate the cross-functional thinking that is needed

for successful reorganisation.

Ansett Australia purchased an off-the-shelf revenue management system, knowing
full well that other airlines were buying the same product. Their strategic advantage
came from the overall integration of system design into the human fabric of both

organisation and client, rather than from the system itself.

Penfolds and Seppelt identified that consistency, flexibility and availability of
information emerged as issues that needed to be tackled if the company was to
maintain a competitive framework. After much internal consultation, their IT staff

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number was cut from 32 to 16, and the company implemented a programme to roll out
electronic data interchange services to its suppliers.
July 1997, with all aspects expected to be completed within 4 years. The DAOs business
processes are to be re-engineered to achieve substantial efficiencies and greater effectiveness
focusing on:
1. The consolidation of support and administrative function, reduction in committees and
senior officers
(Staff reductions of approximately 20%), and
2. The collocation and reorganisation of acquisition functions, into groups focusing on
common industry sectors or equipment types.
The total expected annual savings of $50 million will be directed to enhancing
military capabilities and combat elements (see DAO internet reference).
Some of the reengineering literature advises starting with a blank sheet of paper and
redesigning the process anew. The problems inherent in this approach are:

The danger of designing another inefficient system,

Ignoring the embedded system knowledge accumulated over many years, and
Not appreciating the scope of the problem (Petrozzo and Stepper, 1994; ONeill and
Sohal, 1998).

Therefore, many authorities (Klein, 1994; Grover and Malhotra, 1997; Stoddard and
Jarvenpaa, 1995) recommend a thorough understanding of current processes before
embarking on a reengineering project. Current processes can be understood and documented
by flowcharting and process mapping. As processes are documented, their interrelationships
become clear and a map of the organisation emerges. The aim of PR is to make
discontinuous, major improvements. This invariably means organisational change, the extent
of which depends on the scope of the process reengineered.
As these cross-functional processes are reengineered to improve added-value output and
efficiency, many organisations are now questioning the need or even the relevance of
traditional functional structures, and are beginning to organise around core processes. In
essence these are the processes that control the flow of real and virtual resources within an
organisation (Kaplan and Murdoch, 1991).
The reengineering challenge

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A study of The State of Reengineering was conducted in early 1994 by Champy

(1995), and included 621 companies, representing a sample of 6000 of the largest
corporations in North America and Europe. The study showed that 69% of the 497 American
companies, and 75% of the 124 European companies responding were already engaged in one
or more reengineering projects, and that half of the remaining companies were thinking about
such projects.
However Champy (1995) found that substantial reengineering payoffs appear to have
fallen well short of the potential goals Reengineering the Corporation had set:

70 percent decreases in cycle time,

40 percent decreases in costs,
40 percent increases in customer satisfaction, quality, and revenue, and
25 percent growth in market share.

Although little information is available on the 71 percent of the ongoing North American
reengineering efforts in the sample, overall, the study showed that participants had failed to
attain these benchmarks by as much as 30 percent. This leads to the conclusion that the
thoroughly reengineered corporation is as yet a rarity. The problem, it would seem, is that
reengineering of the corporation is not extending to actual management practice. This is
typified by three vice presidents (for sales, service, and order-fulfilment) at a major US
computer company, who were thrilled that reengineered work processes promised to cut
product introduction time in half, raise customer retention rates by 20 percent, and slice 30
percent from administrative costs in their areas. They were not thrilled enough, however, to
willingly give up control of their functional areas and collaborate. As a result, the
reengineering effort died a year
after its inception. In this case, senior managements leadership was not strong enough to
implement a change in the pattern of shared values, beliefs and rules for behaviourtheir
culture (Davis, 1984).
Reengineering horizontal processes such as order fulfilment, new product
development, and service delivery, so they become distinctive competencies that competitors
cannot readily match is very different from managing a vertical function in a traditional
hierarchical organisation. Day (1994) notes three distinctive tenets that must be understood
by senior management before reengineering is undertaken:

The change to process management emphasises external objectives. These objectives

may involve customers satisfaction with the outcome of the process,

37 | P a g e

Coordinating the activities of a complex horizontal process, will require boundaries

and horizontal connections to be madeculture change, and

Unfiltered information that is readily available to all team members, so as to facilitate
the learning process (Senge, 1990).

The loan approval process within IBM Credit illustrates both the problems and benefits of
managing a process so it becomes a distinctive capability rather than simply a sequential
series of necessary activities. Often this process is obscured from top management view
because it links activities that take place routinely as sales forecasts are made, orders are
received and scheduled, products are shipped, and services are provided (Shapiro et al.,
1992). In another example, Marriott Hotels is able to consistently receive the best ratings
from business travellers and meeting planners for high-quality service. They are certainly as
capable as Hyatt, Hilton, and others at selecting good sites, opening new hotels smoothly, and
marketing them well (Irvin and Michaels, 1989). What consistently sets them apart and
reveals a distinctive service
core competency is a fanatical eye for detail. This begins with a hiring process that
systematically recruits, screens, and selects from as many as 40 applicants for each position
and continues through every hotel operation; for example, maids follow a 66-point guide to
making up bedrooms. The effective management of these linked processes, within an
organisational culture that values thoroughness and customer responsiveness, creates a
distinctive capability that gives Marriott employees clear guidance on how to take the
initiative to provide excellent customer service.
Organisational redesign using PR
PR is not intended to preserve the status quo, but to fundamentally and radically
change what is done; it is dynamic. Therefore, it is essential for a PR effort to focus on
outcomes rather than tasks, and the required outcome will determine the scope of the PR
exercise.
Schaffer and Thomson (1992) highlighted how focusing on results rather than just
activities makes the difference between success and failure in change programmes. The
measures used, however, are crucial. At every level of reengineering, a focus on outcome
gives direction and measurability; whether it be cost reduction, head count reduction, increase
in efficiency, customer focus, identification of core processes and non-value-adding

38 | P a g e

components, or strategic alignment of business processes. Benchmarking is a powerful tool

for PR and is the trigger for many PR projects, as in Fords accounts payable
process. The value of benchmarking does not lie in what can be copied, but in its ability to
identify goals (Richman and Koontz, 1993; Earl and Khan, 1994).

If used well,

benchmarking can shape strategy and identify a potential competitive advantage (Zairi and
Leonard, 1994).
Hamel and Prahalad (1989, 1990, 1991) established that strategic direction via intent
rather than portfolio analysis should be the key to an organisations core competencies, and
that through expeditionary marketing this should lead on to developing the skills required to
achieve the intent. Establishing its core processes focuses a company on what it does, how it
does it, and how it should do it. Core process redesign can thus channel an organisations
competencies into an outcome that gives it strategic competitive advantage (Kaplan and
Murdoch, 1991). The key element is visioning that outcome (Goss et al., 1993).

The redesign process

Central to PR is an objective overview of the processes to be redesigned. Whereas
information needs to be obtained from the people directly involved in those processes, it is
never initiated by them. Even at its lowest level, PR has a top-down approach (Hammer and
Champy, 1993). Therefore, most PR efforts take the form of a project (Earl and Khan, 1994).
There are numerous methodologies being proposed, but all share common elements.
Typically, the project takes the form of several discrete phases (Carr and Johansson, 1995).
People need to be equipped to assess, reengineer, and supportwith the appropriate
technologythe key processes that contribute to customer satisfaction and corporate
objectives (Coulson-Thomas, 1993). Therefore, PR efforts can involve substantial investment
(Petrozzo and Stepper, 1994), but they also require considerable top management support and
commitment. Critical to the success of the redesign is the make-up of the reengineering team.
Most authors suggest that the team should comprise the following:

Senior manager as sponsor

Steering committee of senior managers to oversee overall reengineering strategy
Process owner
Team leader
Redesign team

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This structure varies depending on the author. For example, Harrington (1991b) referred
to executive improvement teams and process improvement teams rather than steering
committees and reengineering teams. Champions (team leaders) and czars (sponsors) were
also referred to, and, depending on the scope of the reengineering effort, the sponsor, process
owner, and leader may be one or more people (Hammer and Champy, 1993). The process
owner is someone given the responsibility for the overall reengineering of a specific process.
The project approach to PR suggests a one-off approach. When the project is over, the
team is disbanded and business returns to normal, albeit a radically different normal. It is
generally recommended that an organisation does not attempt to reengineer more than one
major process at a time, because of the disruption and stress caused. Therefore, in major
reengineering efforts of more than one process, as one team is disbanded, another is formed
to redesign yet another process. Considering that Ford took 5 years to redesign its accounts
payable process (Davenport, 1993c), PR on a large scale is a long-term commitment. In a
rapidly changing business environment, it is becoming more likely that companies will
reengineer one process after another. Competitive advantage is a dynamic goalone that
does not stand still (DAveni, 1995). Once a process has been redesigned, most authors call
for continuous improvement of the new process by the team of people working in the process.
That is, organising work around people which fosters interaction, understanding, and
responsibility. The dissemination of information via IT further empowers the team to make
decisions and inevitably results in a delayering of management structures.
Greatest risks perceived in embarking on a PR programme
Carr and Johansson (1995) identified two types of risk in the implementation of PR:
Technical Risk, which is a fear that the process changes will not work, and Organisational
Risk, by far the greatest risk, which is the possibility of corporate culture reaction against the
changes. It is also noteworthy that only 44 percent of respondents to the Carr and Johansson
survey cited that they would accept more than a modest amount of risk during
implementation. Thirty seven percent of respondents cited multiple communications with
employees as a critical must do in order to minimise the risks in a reengineering effort. The
message should be simple, involve top management, and must be communicated as early as
possible so that understanding and buy-in is created at the start of the project. Another
methodology cited by Carr and Johansson in the reduction of risk is to demonstrate the
success of reengineering through the implementation of precisely targeted pilot programmes.
40 | P a g e

They help communicate strategy, and can also reinforce management commitment and create
user buy-in.

ENERGY SAVINGS IN INDUSTRY

A. Energy Use in Industry
Industry is the major user of energy in modern society, accounting for roughly 40% of
final energy use. Coal or oil are heavily used, especially by primary industry and
manufacturing and refining. Gas is being used increasingly to replace coal because it is a
cleaner fuel producing less impact on the environment. Electricity is only a minor component
of industrial energy use although its use in driving electric motors is very important.
The major sectors within industry can be categorised as follows:
Manufacturing this includes the processing of primary resources into consumer products.
Mineral refining, oil refining and chemical manufacturing are some areas of energy use
where considerable savings could be made. Such activities often occur in the industrial zones
of major cities.
Power Generation - the power generation industry is a massive user of fossil fuels and
accounts for more than 50% of international greenhouse gas emissions. Many power stations
are very inefficient and there are strong economic and environmental incentives to save
energy in the power supply industry. Most cities have major power stations and these are
often a cause of air pollution as well.
Mining this is a primary industry which generally occurs outside cities, often in remote
parts of the country. Energy intensity is high in most mining operations but there is an
incentive to save energy because energy wastage is reflected in the cost of the minerals.
Agriculture another major user of primary energy which takes place in rural areas and is
largely beyond the scope of city governments to influence it.
Construction is a modest user of energy, particularly liquid fuels because this activity often
takes place at sites where electric power is not readily available. Considerable savings are

41 | P a g e

available in this sector because there is often a large amount of wastage in construction
activities.
The main focus will therefore be on energy savings in manufacturing and power
generation as these are the major users of industrial energy in cities.
B. Energy Auditing in Industry
Energy auditing in industry takes a similar approach to audits undertaken in the
commercial sector and will generally involves:

An analysis of existing energy consumption records to determine where, how and

how much energy is being used in the plant. It will also seek to identify trends in

consumption data.
A walk through audit that documents where the main areas of energy consumption
exist within the plant. This phase will identify any obvious areas of wastage together

with the most promising areas for potential savings

Detailed analysis phases which will take the data obtained in the previous two phases
and prepare detailed plans for energy savings options. These plans will include details
on the energy use and cost of each stage of the production process as well as costings
and expected payback periods of the various energy saving options proposed.

In the case of the industrial sector, the main focus should be level three auditing, where
the individual processes are analysed, for example, the production of steam for use in
commercial laundries. Although level one auditing, which focuses on the analysis of energy
use through and investigation of the tariff structure of existing energy purchases, should be
undertaken, the greatest potential for savings in the industrial sector will usually revolve
around the selection, operation and maintenance of efficient equipment in the process.
1. Planning for Energy Efficiency in Industrial Processes
Once an initial energy audit has been undertaken, it will provide an important first
step in monitoring and achieving the progress towards energy efficiency goals. This
information is the baseline energy consumption, or the energy usage associated with current
practices in the factory as well as existing equipment. Known as T0, this is the energy
consumption prior to any systematic energy efficiency measures being undertaken.
In conjunction with the result from the screening survey, the establishment of this
baseline information allows energy managers to set targets for reduced energy consumption
which can be achieved through changes in the management and operation of the industrial
42 | P a g e

process as well as targets which would be possible through the implementation of energy
efficient technologies.
Short Term Energy Efficiency Targets
Energy efficiency targets, which can be achieved in the short term, as a result of
streamlined operation of the plant, are known as T1, or housekeeping targets. These energy
savings will usually be the result of the efficient use of energy consuming equipment, a
reduction in the amount of waste energy, timely maintenance of equipment and continual
monitoring of the energy consumption of the industrial process. Specific examples of
housekeeping targets for electric motors, compressed air systems, process heating, steam and
heat recovery are covered later in this chapter, and are symbolised by (T1).
Long Term Energy Efficiency Targets
Further reductions in energy consumption which can only be achieved through
purchase with a high capital cost, are known as T2, or investment targets, and should ideally
be based on the lowest energy consumption of best practice examples of similar industrial
processes. As the purchase of expensive capital equipment is required to achieve these
targets, careful modelling should be undertaken to ensure that the investment is sound, ie that
the payback period of the equipment is not greater than the working life of the equipment.
Innovation Energy Efficiency Targets
Energy efficiency is an area of increasing technological innovation and some
consideration should also be given to setting T3, or innovation targets. These targets are
based on the energy consumption of state of the art technologies, which are still economically
viable. Innovation targets, whilst not immediately achievable, may become achievable in the
medium to long term as a result of changes in the economic environment (i.e. greatly
increased profitability of the industry), the production environment (i.e. the need for a higher
quality or specialised product for niche markets) or regulatory changes (i.e. the introduction
of legislation governing pollution control, energy consumption or the Kyoto protocol).
C. Strategies for Energy Savings in Industry
The strategies for achieving energy savings in industry are quite different to those for
most other sectors. Industry is very diverse and is often controlled by very large multinational corporations. In this context the appropriate approach needs to be carefully
considered. Industry is generally receptive to efforts to cut its energy costs but it is less likely
to be attracted to regulatory measures that increase its operating costs.
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Technical Options
The technical options available for energy savings in the industrial sector are as diverse as
the industries themselves. However, they principally revolve around the saving of energy in
areas such as:

Steam
Furnaces
Heat Recovery

The production of onsite power and heat (or steam) through Cogeneration systems, or
Combined Heat and Power (CHP) systems can also result in energy savings, through the
utilisation of waste energy associated with the production of power.
1. Energy Savings and Steam Generation
Steam is used for a multitude of purposes in industrial plant. It can provide heat for
chemical processing, hot water for cleaning purposes, steam for input to turbines for
producing power and so on. Steam is generally produced by boilers. Boilers typically operate
well below their optimum efficiency and savings of approximately 15% should be readily
achievable. As with all examples of industrial energy efficiency, it is important to consider the
whole steam system from generation to recovery. Heat (and thus energy) losses in the steam
generation and distribution systems will result in poor heating at the location of the end use.
2. Boilers
Energy savings in the generation side of steam use are usually the result of efficiency
improvements in the operation of the boiler. In maximising the efficiency of boilers two key
principles need to be addressed: first, the level of excess air (the extra air needed to ensure
good combustion of the fuel in the boiler) and secondly the temperature of the flue gases
needs to be kept as low as possible (otherwise a large part of the heat that was produced in the
boiler will go up the chimney).
Good monitoring can be used to assist in achieving these outcomes. In addition, to
these, the utilisation of high quality water, free from contaminants, ensures that the minimum
amount of heat is required to produce steam.
In boiler plants, there are typically four areas of potential savings:

Monitoring equipment (T1/ T2)

Load management (T1)

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Condensate return (T1/T2)

Fuel selection (T1)

Monitoring Equipment
Boilers are a potential source of energy savings since they are frequently inadequately
monitored, even at the simplest level, resulting in efficiency losses, and hence. Simple, but
regular analysis of the flue gases, including chemical analysis of the gases and its
temperature, will help determine if the boiler is operating efficiently. Care should be taken to
ensure that the tests are conducted with load levels of at least 65 70% and that the load and
gas (steam) pressures are constant. Once this level of analysis is well established, additional
monitoring equipment which can determine the gross thermal efficiency of the boiler, may be
required.
Condensate Return
Unfortunately, there will always be some efficiency losses in process heating due to
boilers as a result of condensate. Boilers and reticulation systems which are fitted with
condensate return systems are far more efficient than those where the condensate enters a
waste stream. The efficiency gains are largely the result of chemical profile of the steam
condensate, which is typically hot and free of oxygen. This liquid requires less energy to
convert the already heated and deoxygenated liquid to gas (especially steam).
Fuel Selection
There are seven common types of fuels available for boilers:

Coal
Natural gas
Liquefied petroleum gas (LPG)
Furnace Oil
Diesel
Electricity
Wood, or wood wastes (Biomass)

In many parts of the world, coal is used as a boiler fuel as it is usually the cheapest
industrial fuel source. However, many countries are looking towards natural gas and biomass
as alternatives due to the increasing cost of the traditional fossil fuels, diesel, coal and
electricity as well as regulatory changes.

45 | P a g e

When selecting or reviewing the fuel selection for boilers, careful consideration should be
given to ensure that the full cost of the fuel, including transportation cost, is considered. For
example, a boiler in a pulp and paper mill may be more cost effective if it utilised the wood
waste from the pulp process than coal or natural gas, despite a supply of both nearby.
Cogeneration, the simultaneous production of heat and power is also a potential area of
energy savings, through the onsite generation of heat / steam and electricity.
3. Energy Savings in Steam Distribution Systems
As with compressed air systems, the distribution of steam throughout an industrial
facility is a potential area of energy loss, and hence increased operating costs. Steam traps are
used in steam distribution systems to remove condensate as it forms. They often have the dual
function of removing any entrapped air in the system. The presence of air and condensate in
steam systems reduces the effectiveness of heat transfer in these systems as they tend to form
insulating layers on heat transfer surfaces.
This means that temperatures have to be higher in order to achieve the same rate of
heat transfer. Also the presence of air reduces the overall temperature of the system which is
governed by the pressure of the steam. If part of the pressure of the system is caused by
entrapped air, the net pressure of the steam is less than that read on the steam gauges and so
the temperature will be lower than expected. Regular checking of steam traps and air vents is
essential for the efficient operation of steam plant.
Energy is also wasted in steam distribution systems where heat is lost to the
environment through inadequate insulation of the reticulation system. Care needs to be taken
with valves and fittings that, if not properly insulated, lead to significant heat loss. Any heat
lost in the distribution system means that additional fuel has to be consumed in the boiler to
make up for this loss.
Condensate is an inevitable product of any steam system either as a result of heat loss
or simply as a result of using the steam to transfer heat to a process. This condensate
represents a source of hot, very pure water and so is an ideal feedstock for the boiler input.
Assuming that the condensate has not been contaminated by the process, the use of
condensate is a very effective example of using waste heat (or heat recovery).
4. Energy Savings and Furnaces
Furnaces are widely used in the manufacturing and mining industries. Although
similar to boilers, they are usually used to melt metals for casting. Many of the potential areas
for energy savings are the result of high capital cost, or require detailed changes in the current
operation of the factory or smelter. These include rescheduling to reduce the occurrence of a
46 | P a g e

furnace being heated with less than an optimum load, automatic control of furnaces,
insulation of the furnace as well as modifications to the furnace. Although these items require
large amounts of capital, consideration should be given to these issues, especially where the
furnace is due to be replaced, or where a new furnace is to be purchased.
Cost effective, simple strategies for reducing the energy consumption of furnaces are
very similar to those discussed in the section on boilers, and includes fuel selection,
monitoring equipment (to ensure there is not excessive air in the melt) and load management.
Furnace systems often offer good potential for heat recovery systems where the very
high temperatures in the exhaust air can be used to preheat the combustion air entering the
system.

This chapter contains analysis and interpretation of the primary data collected by keen
observation throughout the process in the organization. The analysis was done using one of
the most effective tools in management, Theory of constraints. The obtained data was
tabulated with the help of bar chart.
The analysis is done in such a way that, the data is collected and the data is analysed
through the five steps of theory of constraints and the final solution was derived. The data is
analysed by using arithmetic calculations and charts were used for graphical representation of
this data.

47 | P a g e

This chapter deals with analysis and interpretation of data collected for the study. The
consolidated data is presented in the forms of technical and engineering shortcomings
persisting in the company and the financial crunch that is faced by the organization. Technical
innovations and engineering solutions that were implemented to overcome these
shortcomings are well explained and the financial gains which are anticipated from these
actions are consolidated in this chapter and are well interpreted.
The study is now further proceeded with the help of one the most vital management
paradigm for resolving the situation existing which is Theory Of Constraints.
Theory Of Constraints:
The Theory of Constraints is a methodology for identifying the most important
limiting factor (i.e. constraint) that stands in the way of achieving a goal and then
systematically improving that constraint until it is no longer the limiting factor. In
manufacturing, the constraint is often referred to as a bottleneck. The Theory of Constraints
takes a scientific approach to improvement. It hypothesizes that every complex system,
including manufacturing processes, consists of multiple linked activities, one of which acts as
a constraint upon the entire system (i.e. the constraint activity is the weakest link in the
chain). So the ultimate goal of most manufacturing companies that is to make profit both
48 | P a g e

in the short term and in the long term. The Theory of Constraints provides a powerful set of
tools for helping to achieve that goal.
The Five Focusing Steps:
The Theory of Constraints provides a specific methodology for identifying and
eliminating constraints, referred to as the Five Focusing Steps. As shown in the following
diagram, it is a cyclical process.

Fig 3.1 The Theory of Constraints uses a process known as the Five Focusing Steps
to identify and eliminate constraints (i.e. bottlenecks).
The Five Focusing Steps are further described in the following table.
Step

Objective

Identify

Identify the current constraint (the single part of the process that limits the
rate at which the goal is achieved).

Exploit

Make quick improvements to the throughput of the constraint using existing

resources (i.e. make the most of what you have).

Subordinat

Review all other activities in the process to ensure that they are aligned with

and truly support the needs of the constraint.

Elevate

If the constraint still exists (i.e. it has not moved), consider what further

49 | P a g e

actions can be taken to eliminate it from being the constraint. Normally,

actions are continued at this step until the constraint has been broken (until
it has moved somewhere else). In some cases, capital investment may be
required.
Repeat

The Five Focusing Steps are a continuous improvement cycle. Therefore,

once a constraint is resolved the next constraint should immediately be
addressed. This step is a reminder to never become complacent
aggressively improve the current constraintand then immediately move on
to the next constraint.

The primary objective of the study was to find out the optimum areas for the
successful implementation of green energy initiatives. Since, the organizations major raw
material for production is electricity and hence one of the area were electricity is largely
consumed was for the production of Caustic in the AGC Electrolyser plant and another area
was in production of steam for the same.

Observations & Implications

As a result of this study, it was observed that there is huge consumption of electricity
in the membrane cell electrolysis process in the AGC plant. This study was conducted in the
AGC plant in association with the operations department and it is observed that a huge
amount of voltage consumption and which finally resulted in tremendous amount of total
power consumption by each unit of membrane electrolyser for production and all together,
from a total of 20 number of electrolysers the power consumption was beyond expectations.
Similarly, steam was another factor which was causing another additional problem,
the usage of steam to heat up the brine solution fed into the electrolyser need to be preheated
to a temperature of 70-72 degree Celsius. So daily 24 MT (Metric Ton) of steam has to be
produced to pre-heat this brine solution, which was another additional expense to the
organization. The financial expense generated due these activities is a huge amount and these
much amount is not required to solve this situation.

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Observation & Analysis

TOC Step 1: IDENTIFY
It was observed that the major power consumption was due to the huge amount of
voltage consumption in the AGC Electrolyser i.e., 9.5 V per membrane electrolyser. It is
understood that, this tremendous rise in consumption in voltage is due to the entrapment of
gas bubbles between electrodes and the hydrophobic fluoro polymer membrane. Thus a lot of
operating voltage is drawn in order to produce the desired output. Similarly, the usage of
steam was an issue, the steam production was an unnecessary expense when it was only
meant for the AGC plant brine pre-heating, and even sometimes steam has to be bought from
the neighbouring organization FACT for continuing with uninterrupted production.
Problem 1
It was found that large amount of power consumption by the membrane electrolysers in the
AGC plant.
Problem 2
The next problem found was the excess usage of steam in the AGC plant for the pre-heating
process of brine fed into the electrolysers.

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Technical Analysis
Problem 1: It was found that large amount of electric power been consumed by the
membrane electrolysers in the AGC plant.
TOC Step 2 : Exploit & Subordinate
By step 2, both processes included in the theory of constraints is been practised by the
organisation as a part
of resolving the existing
situation, but it was found partially effective
DISSOLUTION
/ SATURATION

SALT

and hence they decided to elevate the constraint.

The basic raw materials for the production process:

Common salt : 1.66 tons of common salt per one ton of NaOH.
Electricity : 60% of total production cost.

PRECIPITATION

Basic Process Flow (Fig 3.2):

CLARIFICATION

FILTRATION

ION EXCHANGE

CAUSTIC

ELECTROLYSIS

52 | P a g e

DECHLORINATION

CHLORINE

Electrolyser Process:
Membrane cell
This method produces approximately 13 per cent of Sodium Hydroxide. The
membrane cell method utilizes a selective membrane that separates the Chlorine and Sodium
ions. The membrane permits the Sodium ion to migrate across the membrane whereas
keeping the Chlorine gas and salt (brine) solution in a compartment on the opposite facet of
the membrane.
The Sodium ion is reacted with refined water as within the mercury cell to provide the
Caustic Soda (NaOH). Evaporation is employed, as within the diaphragm method, to lift the
concentration up to the nominal 50 weight per cent solution. The salt concentrations are not
targeted as considerably during this evaporation method attributable to the selective diffusion
nature of the membranes as well as the reduced quantity of evaporation needed during this
method opposed to the diaphragm evaporation.
The Caustic Soda produced by the membrane cell process is most typically brought
up as Membrane Grade. It conjointly contains a growing acceptance as a Rayon Grade
product in all areas outside of rayon fiber production.
Electrolyser Parts:

Anode Elements with mesh

Cathode Elements with mesh
Ion Exchange membranes
Gas separators

53 | P a g e

Circulation pipes

Existing Electrolyser:
The existing setup of electrolyser in AGC plant basically consist of anodes (30 no.s)
made up of titanium mesh as material. The cathode is another vital part of the electrolyser,
which is made up of coated copper mesh (30 no.s).
The gap between membrane and cathode is 0.8 to 1.0 mm and hence due to the finite gap
present in the electrolyser, the power consumption by the electrolyser is high. Thus the
operating voltage of the AGC electrolyser will be around 9.50V.
This rise in voltage is observed due to the entrapment of gas bubbles between the electrodes
and the hydrophobic fluoro polymer membrane.
Similarly, there are 20 no.s of electrolysers that are present in the AGC plant and hence the
resultant power consumption is huge.
(Fig 3.3) Existing electrolyser set up

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Performance of Infinite gap electrolysers:

Table 3.1 Details showing power consumed per day per electrolyser
Period:

Type:

Voltage(V) at 61 KA

DC/MT of NaOH

Day 1

Conventional cathode

9.50

2184

Day 2

Conventional cathode

9.51

2189

Day 3

Conventional cathode

9.50

2185

Day 4

Conventional cathode

9.50

2185

Day 5

Conventional cathode

9.51

2188

Chart 3.1: Graphical representation of power consumption per day per electrolyser

2190
2189
2188
2187
2186
2185
2184
2183
2182
2181
Day 1 (9.50 V) Day 2 (9.51 V) Day 3 (9.50 V) Day 4 (9.50V) Day 5 (9.51 V)

Interpretation:
From the table and chart, it is evident that per day approximately 2188 DC/MT (KWh/t) of
NaOH production is carried out by using the conventional infinite gap electrolysers.

55 | P a g e

Financial Analysis for infinite gap electrolyser:

Total Production

: 125 TPD

Total Number of electrolysers

: 20

Production per electrolyser

: 6.25 TPD (125/20)

Rectifier Efficiency

: 96%

Energy cost per unit

: Rs.4.81

Day 1:
DC/MT consumed
Units of energy consumed per electrolyser

: 2184 KWh/t
: 2184*6.25/0.96 = 14218.75 units per day
per electrolyser

Cost per electrolyser

: 14218.75*4.81 = Rs.68392

Cost for 20 Electrolysers

: 68392*20 = Rs. 1.36 million

Day 2:
DC/MT consumed
Units of energy consumed per electrolyser

: 2189 KWh/t
: 2189*6.25/0.96 = 14251.30 units per day
per electrolyser

Cost per electrolyser

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: 14251.30*4.81 = Rs.68548

Cost for 20 Electrolysers

: 68548*20 = Rs.1.37 million

Day 3:
DC/MT consumed
Units of energy consumed per electrolyser

: 2185 KWh/t
: 2185*6.25/0.96 = 14225.30 units per day
per electrolyser

Cost per electrolyser

: 14225.30*4.81 = Rs.68423

Cost for 20 Electrolysers

: 68423*20 = Rs.1.36 million

Day 4:
DC/MT consumed
Units of energy consumed per electrolyser

: 2185 KWh/t
: 2185*6.25/0.96 = 14225.30 units per day
per electrolyser

Cost per electrolyser

: 14225.30*4.81 = Rs.68423

Cost for 20 Electrolysers

: 68423*20 = Rs.1.36 million

Day 5:
DC/MT consumed
Units of energy consumed per electrolyser

: 2188 KWh/t
: 2188*6.25/0.96 = 14244.80 units per day
per electrolyser

Cost per electrolyser

: 14244.80*4.81 = Rs.68517

Cost for 20 Electrolysers

: 68517*20 = Rs.1.37 million

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Cost incurred by Infinite gap electrolysers:

Table 3.2 Details showing cost incurred per day by 20 electrolysers
Sl. No

Period:

Cost Incurred (in million Rs.):

1
2
3
4
5

Day 1
Day 2
Day 3
Day 4
Day 5

1.36
1.37
1.36
1.36
1.37

Mean cost incurred per day by 20 electrolysers = Rs. 1.369 million

Chart 3.2: Graphical representation showing cost incurred per day by 20 electrolysers

1.4
1.39
1.38
1.37
1.36
1.35
1.34
1.33
1.32
1.31
1.3
Day 1

Day 2

Day 3

Day 4

Day 5

Interpretation:
From the table and chart, it is evident that per day cost that is incurred for the production of
Caustic Soda (NaOH) carried out by using the conventional infinite gap electrolysers, it is
also observed that huge amount of finance is spend upon this part of the production and it is
necessary to reduce to some extend for better productivity.
58 | P a g e

Method to reduce DC Power consumption:

DC Power Cost = Voltage

(Reduce Average Voltage)

Unit Cost Of Electricity

(Reduce Average Electricity Cost)

Efficiency

(Improved membrane efficiency)

Current

(Average current to decide production capacity)

TOC Step 3 : Elevate

In reference with TOC, elevate is the step where the plan comes to action, when
during the exploit and subordination process were found ineffective, the situation or the
problem was elevated into a whole new level, where an ultimate and optimum solution for the
constraint was laid out and tested on for its performance and according to the desired output
expected next step is executed.
Suggested Solution:
From the data available above, an optimum solution which is applicable for problem 1
which is been tested for implementation is by the installation of Zero Gap Ion Exchange
Membrane Electrolyser in order to reduce the present voltage consumption to an extend
which results in the reduction of the whole power consumption in the electrolysers, which in
turn finally results in huge financial gain for the organization
Zero Gap Ion Exchange Membrane Electrolyser:
An electrolyser based on the zero gap principle i.e. with electrode in direct contact
with a separating membrane or diaphragm. This way the internal resistance will be minimized
as compared to traditional electrolysers where there is a gap between the electrode and the
separator. The alkaline electrolyser is the most developed type and it has at present the
highest potential for bringing down manufacturing cost, because it does not rely on expensive
materials. These are belonging to the latest generation of electrolysers, which is unique by its
nature of build and operation i.e, the distance between the membrane and the electrodes are
maintained minimum which is approximately zero is the gap in these type electrolysers. In
59 | P a g e

order for the smooth operation of these kinds of electrolysers a new coating technology has
been developed to overcome the negative effects of the minimum distance. It also reduces the
membrane vibrations and improved life span for the electrolysers. It also provides a better
even current distribution, and in turn a better and safer operating condition is obtained.
Installation & Advantages:
Materials Used:

Metal frame
Ni coil

Advantages:

High Elasticity
Easy Placement
Uniform Pressure
Resistance against severe reverse pressure.

Zero Gap Modification Procedure

As a part of test run procedure, the zero gap modification is just initially done on one
of the electrolyser and it was successfully implemented. The following steps were carried out
for implementing the same:

A depression is made on the existing cathode.

An elastic coil cushion is fixed on the cathode mesh

A fine coated Ni mesh is affixed on to the existing Cu cathode mesh over an elastic
coil.

Advantages Post Observed:

Latest energy efficient electrolyser.

No need of any additional capital investment.

Lower cell voltage, which in turn helps in saving 60 KWh/t of 100% NaOH.
Conversion process is done in staggered fashion, so there will be no sacrifice in the
production process.

60 | P a g e

Comparison of finite Gap and Zero Gap Electrolysers

(Fig 3.4) Modified electrolyser set up

Zero Gap Electrolysers Test Run

As a part of testing the efficiency of the newly adopted technology, test sample
electrolyser of 1 number was selected and was modified as zero gap electrolysers by
installing the cathodes with some fine coated Ni mesh affixed on to the existing Cu cathode
61 | P a g e

mesh over an elastic coil. The test run apparatus were subjected to observation for 6 days for
its increased efficiency in performance.
The modifications and alterations were done on the test apparatus in the real time
plant conditions without disturbing the existing working set up, it was implemented
consuming very less time and the cost for implementing the change was negligible, since the
materials required for process was readily available within the organization. The results
which were obtained is explained below.
Performance of Zero gap electrolysers:
Table 3.3 Details showing power consumed per day per electrolyser
Period:

Type:

Voltage(V) at 61 KA

DC/MT of NaOH

Day 1

Zero gap

9.26

2129

Day 2

Zero gap

9.27

2131

Day 3

Zero gap

9.26

2130

Day 4

Zero gap

9.27

2133

Day 5

Zero gap

9.25

2127

Day 6

Zero gap

9.25

2128

Chart 3.3: Graphical representation of power consumption per day per electrolyser

62 | P a g e

2134
2133
2132
2131
2130
2129
2128
2127
2126
2125
2124
Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

Interpretation:
From the table and chart, it is evident that per day a mean value of 2128 DC/MT
(KWh/t) of NaOH production is carried out by using the zero gap electrolysers. Thus it is
implied that by using the modified zero gap electrolysers in the test setup an efficiency of
96% of electrolyser was observed and it is clearly evident that there is a drastic drop in the
volume of voltage consumed by the electrolyser by inflicting zero gap modification to the
electrolyser. In turn the overall power consumption of the electrolyser is reduced from 2188
DC/MT (KWh/t) by infinite gap electrolyser to a mean value of 2128 DC/MT (KWh/t) by
using zero gap modified electrolyser. Thus it is observed that a mean savings of 60 KWh/MT
per electrolyser is saved.

Financial Analysis for zero gap electrolyser:

63 | P a g e

Total Production

: 125 TPD

Total Number of electrolysers

: 20

Production per electrolyser

: 6.25 TPD (125/20)

Rectifier Efficiency

: 96%

Energy cost per unit

: Rs.4.81

Day 1:
DC/MT consumed
Units of energy consumed per electrolyser

: 2129 KWh/t
: 2129*6.25/0.96 = 13861 units per day
per electrolyser

Cost per electrolyser

: 13861*4.81 = Rs.66670

Cost for 20 Electrolysers

: 66670*20 = Rs. 1.332 million

Day 2:
DC/MT consumed
Units of energy consumed per electrolyser

: 2131 KWh/t
: 2131*6.25/0.96 = 13874 units per day
per electrolyser

Cost per electrolyser

: 13874*4.81 = Rs.66732

Cost for 20 Electrolysers

: 66732*20 = Rs.1.334 million

Day 3:

64 | P a g e

DC/MT consumed
Units of energy consumed per electrolyser

: 2130 KWh/t
: 2130*6.25/0.96 = 13867 units per day
per electrolyser

Cost per electrolyser

: 13867*4.81 = Rs.66701

Cost for 20 Electrolysers

: 66701*20 = Rs.1.334 million

Day 4:
DC/MT consumed
Units of energy consumed per electrolyser

: 2133 KWh/t
: 2133*6.25/0.96 = 13887 units per day
per electrolyser

Cost per electrolyser

: 13887*4.81 = Rs.66795

Cost for 20 Electrolysers

: 66795*20 = Rs.1.335 million

Day 5:
DC/MT consumed
Units of energy consumed per electrolyser

: 2127 KWh/t
: 2127*6.25/0.96 = 13848 units per day
per electrolyser

Cost per electrolyser

: 13848*4.81 = Rs.66607

Cost for 20 Electrolysers

: 66607*20 = Rs.1.332 million

Day 6:

65 | P a g e

DC/MT consumed

: 2128 KWh/t

Units of energy consumed per electrolyser

: 2128*6.25/0.96 = 13854 units per day

per electrolyser

Cost per electrolyser

: 13854*4.81 = Rs.66639

Cost for 20 Electrolysers

: 66639*20 = Rs.1.332 million

Cost incurred by Zero gap electrolysers:

Table 3.4 Details showing cost incurred per day by 20 electrolysers
Sl. No

Period:

Cost Incurred (in million Rs.):

Day 1

1.332

Day 2

1.334

Day 3

1.334

Day 4

1.335

Day 5

1.332

Day 6

1.332

Mean cost incurred per day by 20 electrolysers = Rs. 1.333 million

Chart 3.4: Graphical representation showing cost incurred per day by 20 electrolysers

66 | P a g e

1.35

1.34

1.33

1.32

1.31

1.3
Day 1

Day 2

Day 3

Day 4

Day 5

Interpretation:
From the table and chart, it is evident that per day cost that is incurred for the
production of Caustic Soda (NaOH) carried out by using zero gap electrolysers, it is also
observed that huge amount of finance is saved by following zero gap electrolyser production
process. The mean cost incurred is Rs.1.333 million per day for 20 electrolysers.
Thus it can inferred that, huge amount financial savings is achieved by conducting test
run with zero gap electrolysers when compared with finite gap electrolysers.

67 | P a g e

Day 6

Anticipated financial benefits after zero gap modification

In terms of power
Mean power consumed using infinite gap electrolysers = 2188 DC/MT (KWh/t)
Mean power consumed using zero gap electrolysers = 2128 DC/MT (KWh/t)
Mean difference in power consumed = 60 DC/MT (KWh/t)
On the basis of DC/MT units saved = 60 KWh/MT
Total production = 125 TPD
Total number of electrolysers = 20
Production per electrolyser = 125/20 = 6.25 TPD
Rectifier efficiency = 96%
Energy cost per unit = Rs. 4.81
Total production days = 330 days
Units of power saved per day per electrolyser =
60*6.25/0.96 = 390.6 units per day per electrolyser
Units of power saved per year per electrolyser =
390.6*4.81*330 = Rs. 6,20,000 per electrolyser per year

68 | P a g e

After 20 Electrolyser Zero gap conversion,

Total Savings = 620000*20 = Rs. 12 million per year.
In monetary terms,
Mean cost incurred for 20 electrolysers by infinite gap electrolysers =
Rs.1.369 million per day
Mean cost incurred for 20 electrolysers by zero gap electrolysers =
Rs.1.333 million per day
Mean difference in cost incurred for 20 electrolysers = Rs. 0.036 million per day
On the basis of financial savings = Rs. 0.036 millions per day
Total production days = 330 days
Total savings by 20 electrolysers per year after zero gap modification of electrolysers is,
330*0.036 =Rs. 11.88 i.e,
Rs. 12 million per year.
Interpretation:
Hence, it is proved in terms of power consumption and in monetary terms the
difference in the power consumed and cost incurred by shifting the operation from
conventional infinite gap electrolysers to modified zero gap electrolysers. There had been a
drastic drop in the power consumption and the financial benefits that can be obtained by
inflicting such a change on 20 electrolysers in the AGC plant is proved above. About Rs.12
million can be saved by carrying out the proposed modification.

69 | P a g e

Problem 2: Problem found was the excess usage of steam in the AGC plant for the preheating process of brine fed into the electrolysers.
TOC Step 2 : Exploit & Subordinate
The existing condition was in the AGC plant, were the brine which is processed after
2 to 3 stages of purification and precipitation and much treatment needs to be further
subjected to electrolysis process for the perfect purifications and separation of the caustic
soda (NaOH) from the brine solution. The separated caustic soda is then further processed or
treated to obtain purified form of 32% Caustic and which is further treated and processed to
obtain 50% Caustic and the final purified form which is 99% purified caustic soda which is
Rayon grade caustic soda. They are obtained in flake form.
Electrolyser is one of the vital parts in the process of electrolysis, were the brine is
subjected to chemical reaction and gets separated to caustic an following products.
As explained above, caustic is further processed to obtain the final product, similarly
chlorine and hydrogen are also further processed to obtain products like,

Hydrochloric acid
Sodium hypo chlorite.

For an optimum electrolysis process for the desired output of products, the rectifier must
be running in its maximum efficiency, i.e, 100% desired. For 100% output, the inputs given
should be perfect and the governing parameters of the electrolysis process must also be
maintained at the desired level for the maximum efficiency.
One of such important parameter that is governing the electrolysis process is temperature.
The temperature as a parameter includes,

The temperature of the brine fed into the electrolyser.

The temperature that is maintained inside the electrolyser.

Of this, the problem lays in the first part, i.e the temperature of the brine solution that is
fed into the electrolyser. It is prescribed that for the optimum performance of the electrolyser,
it is necessary to maintain the fed in brine solution temperature has to maintained within 70
72 degree Celsius.
70 | P a g e

As it is explained above the temperature has to be maintained within a range of 70 to 72

degree Celsius when fed into the electrolyser. Now, the brine which is obtained after much
processing, that is needed to be fed into the electrolyser is within a temperature range of 60 to
65 degree Celsius. So, it is then clearly evident that the input temperature is below the desired
value. So it is necessary that the temperature has to be raised to a level of 70 to 72 degree
Celsius.
Existing System
The existing system is designed in such a way that the fed in brine is preheated to the
desired temperature by heating the fed in brine using steam. The existing system works like;
the brine is heated in using the steam fed from the boiler. The boiler is operation whole the
time during the process and hence the steam is intake from the boiler and it is bypassed in
before the electrolyser to the brine solution to preheat it to the desired temperature and is fed
into the electrolyser.
Process Flow Diagram for Pure Brine Preparation Existing System (Fig 3.5)
60 65 Degree
Celsius Brine

HEAT
EXCHANG
ER

Cl2 to compressor
for cooling

70 72
degree
Celsius
brine

ELECTROLY
SER

HOT
STEAM

BOILER

71 | P a g e

From the diagram it is clearly evident that, the usage of steam for heating up the brine
solution to the desired temperature of 70 to 72 degree Celsius. The heated brine solution is
then further fed into the electrolyser for further processing of the solution. The output Caustic
is send for further processing and the Chlorine which is up to 80 to 85 degree Celsius
temperature is then send to compressor for cooling and for the further production of liquid
chlorine and hydrochloric acid.
Boiler & Steam
Steam is used by many industries as a useful medium to transfer and deliver heat to
industrial and chemical processes. Boilers usually form part of a larger steam system.
Steam is also used for heating applications in industrial processes to control
temperatures and pressures, to remove contaminants and drive mechanical processes. The
technology is also used widely in the commercial sector.
There are four key components of steam systems:

Generation where steam is generated in a boiler or heat recovery generator

Distribution where steam is carried from the boiler to the points of end use

End use includes process heating, mechanical drive and moderation of chemical
reactions using equipment such as heat exchangers, turbines, and chemical reaction
vessels

Recovery where condensate is returned to a collection tank

Boilers and water systems generate hot water or steam by using fuel to raise the energy
content of water. The fuel input can include natural gas, coal and oil, Biogases, wood
waste, black liquor or electricity.
There are two main types of boilers, based on the type of heat transfer system they use:

Fire tube boilers store water in the main body of the boiler. They heat the water via
conduction where a tube carrying the combustion gases is immersed in water. Fire tube
boilers are simple and low cost and best suited to producing hot water or low pressure
steam.

72 | P a g e

Water tube boilers Combust fuel in a central chamber. Gases flow around tubes
that contain the water. Heat radiation from the flame and conduction and convection from
the gases heat the water tubes. They can be more expensive and complex, but can produce
steam at very high temperatures.

Industry sectors vary in the boilers they use, for example:

Food processing use some large boilers, but generally a large number of small
boilers

Pulp and paper generally use large steam boilers

Chemicals use both small and large boilers

Primary metals use large boilers.

As explained above for achieving the desired temperature for the fed in brine solution, the

brine solution must be heated using a wave of saturated steam from the boiler. Here at TCC, a
fire tube boiler of Thermax is used for the production steam. As per the data obtained, the
production capacity of the boiler comes around 6 ton per hour. Steam is inevitable in various
areas of the organization for the production of caustic and the related products along with it.
And it is clearly evident that at this part of production the usage of steam is most
necessary for preheating the brine solution all the time during the production and as such a
large of steam is consumed by this part of the process, which in turn is a huge expense which
is incurred for the organization.

Volume of steam consumed

: 1 ton/hour

Total time of production

: 24 hours

Total volume of steam consumed : 24 MT

Cost of steam

Total cost of steam consumed

: Rs.3500/ton
: 24 MT * Rs.3500 = Rs. 84,000 per day.

The statistics given above explains about the total steam consumed by the AGC plant for
preheating the brine solution. It also explains the cost which is incurred for the usage of

73 | P a g e

steam, huge amount of money is spend upon for the production and usage of steam in the
production process.
There are also instances which arise during certain situation, that there will be shortage in
steam for the production process inside the plant. When such situation arises, TCC the
organization is forced to continue with production process by borrowing steam from FACT
(Fertilizers and Chemicals of Travancore). This also seems to be an extra expense incurred by
the organization by purchasing steam forms another provider. So, in order to reduce the steam
consumption and to reduce the extra expenses incured due to it, some action has to be done to
overcome this crisis.
Problem 2:
TOC Step 3 : Elevate
Suggested Solution:
Installation of Chlorine Gas Recuperator
As per reference to the current situation, it is necessary to reduce the steam
consumption and one the optimum solution suggested for overcoming this situation is by
installing a chlorine gas recuperator.
This solution was test run using a heat exchanger which was connected by by-passing
the brine solution that is fed into the electrolyser through the heat exchanger. The input that is
fed into the heat exchanger is form the electrolyser itself, the chlorine gas which is liberated
from the electrolyser after the processing of the brine solution. As a result of the electrolysis
process in the electrolyser the products which are obtained are,

Caustic
Chlorine
Hydrogen

Of these products the chlorine solution will be heated up to a temperature range of 82 to

85 degree Celsius and this chlorine solution can then be further reused as an effective
alternative for steam in the production process.
The usage of chlorine in this process is again acting as a boon in the process, because not
only of the saving of steam but also it acts as another benefit.

74 | P a g e

The chlorine that is obtained from the electrolyser is needed to be further cooled and
processed, it is send to cooling tower and then to compressor for cooling and liquefaction of
the hot chlorine gas into cooled liquid chlorine and also for the production of another major
product, Hydrochloric acid. So the usage of this Chlorine gas in an innovative way leads to
cooling of the chlorine gas to some extend when it is passed to the chlorine gas recuperator
and hence half the job is done by the recuperator and the cooling action which need to be
done by the cooling and compressor unit is reduced by the usage of recuperator. Thus it turns
into be useful in both ways.
Stages in liquid chlorine production process (Fig 3.6):
90 degree Celsius
Cl2 from 1st stage
cell
Cooling

40 degree Celsius
Filtration

2nd stage
Cooling

H2SO4
Drying

15 degree Celsius

40 degree Celsius

3.0 Kg cm2
Consumption

Storage

Liquefaction

Compressor

It is easily visible from the diagram that, the chlorine from the cell is cooled in first
stage from 90 to 40 degree Celsius and it is cooled in the second stage from 40 to 15 degree
Celsius and then further dried and send to compressor and liquefied and send to storage and
then later used for other purposes.
Here by the usage of chlorine gas recuperator, the outlet temperature of the chlorine
gas will be reduced to 60 to 65 degree Celsius and hence it acts as great aid in the process of
cooling action in liquid chlorine processing.
Energy Savings through Heat Recovery
In many processes considerable amounts of waste heat are produced. Examples
include the exhaust stacks of engines, boilers or furnaces, condensate in steam systems, and
waste streams from washing, heating applications as well as compressed air systems.

75 | P a g e

Heat recovery involves the use of these waste heat streams to provide useful heat for
another part of the plant. Heat exchangers are used to extract heat from the waste stream and
transfer it to a second fluid flow. In many instances the waste heat from one part of the
process can be used to preheat a fluid for use in that same process. For example the hot air in
the exhaust of a furnace can be used to preheat the combustion air used in the same furnace.
Waste heat is usually best identified as part of an overall energy audit of the industrial process
or facility. The audit should identify the fluid type (liquid or gas), the amount of fluid
generated, either as a volume or flow rate, temperature of the fluid, the time of production
(i.e. only between 10am and 2pm), its location as well as the location of heat using processes.
From this information, the monetary value of the waste heat should also be determined.
Once the size and location of the waste heat product is known, a detailed analysis of
the energy saving potential as well as the process of selecting an appropriate heat exchanger
can be undertaken. Heat exchangers are devices which recover the waste heat from one
process for use in another process.
There are a variety of heat exchangers available on the market, suitable for both batch
and continuous feed operations. Recuperator type heat exchangers are able to work in
continuous feed processes as the heat recovery from the fluid is steady. In regenerator type
heat exchangers, heat recovery is delayed due to the storage period required for the release of
heat from the fluid, and thus is best suited to batch processes. Careful consideration must also
be given to the physical and mechanical performance of the proposed heat exchanger prior to
purchase.
Chlorine Gas Recuperator
A recuperator is

special

purpose counter-flow energy

recovery heat

exchanger positioned within the supply and exhaust air streams of an air handling system, or
in the exhaust gases of an industrial process, in order to recover the waste heat.
In many types of processes, combustion is used to generate heat, and the recuperator
serves to recuperate, or reclaim this heat, in order to reuse or recycle it. The term recuperator
refers as well to liquid-liquid counter flow heat exchangers used for heat recovery in the
chemical and refinery industries and in closed processes such as ammonia-water or LiBrwater absorption refrigeration cycle.

76 | P a g e

Recuperators are often used in association with the burner portion of a heat engine, to
increase the overall efficiency. For example, in a gas turbine engine, air is compressed, mixed
with fuel, which is then burned and used to drive a turbine. The recuperator transfers some of
the waste heat in the exhaust to the compressed air, thus preheating it before entering the fuel
burner stage. Since the gases have been pre-heated, less fuel is needed to heat the gases up to
the turbine inlet temperature. By recovering some of the energy usually lost as waste heat, the
recuperator can make a heat engine or gas turbine significantly more efficient.

Energy Transfer Process

Normally the heat transfer between airstreams provided by the device is termed as
'sensible', which is the exchange of energy, or enthalpy, resulting in a change in temperature
of the medium (air in this case), but with no change in moisture content. However, if moisture
or relative humidity levels in the return air stream are high enough to allow condensation to
take place in the device, then this will cause 'latent' heat to be released and the heat transfer
material will be covered with a film of water. Despite a corresponding absorption of latent
heat, as some of the water film is evaporated in the opposite airstream, the water will reduce
the thermal resistance of the boundary layer of the heat exchanger material and thus improve
the heat transfer coefficient of the device, and hence increase efficiency. The energy exchange
of such devices now comprises both sensible and latent heat transfer; in addition to a change
in temperature, there is also a change in moisture content of the exhaust air stream.
However, the film of condensation will also slightly increase pressure drop through
the device, and depending upon the spacing of the matrix material, this can increase
resistance by up to 30%. If the unit is not laid to falls, and the condensate is not allowed to
drain properly, this will increase fan energy consumption and reduce the seasonal efficiency
of the device.
How Chlorine Gas Recuperator Works.
In order to reduce the steam consumption, a chlorine gas recuperator can be installed.
Now the process is simulated using a heat exchanger that is been bypassed to the process. The
bypassed heat exchanger acts as the recuperator during the test run.

77 | P a g e

The chlorine gas recuperator is very much similar to a shell and tube heat exchanger.
A recuperator works similar to heat exchanger by which the heat is transferred from the
heated chlorine gas to the liquid brine solution. The recuperator is designed as, a shell tube
heat exchanger.
The materials which are used for the construction are:

Tube Side : made of titanium alloy (235 tubes)

Shell Side : MS rubber lined.

The chlorine gas enters into the tubes of the recuperator at 85 degree Celsius and leaves
through the bottom at 65 degree Celsius by cooling itself. Also at the same time the brine
enters into the shell side of the recuperator at a temperature of 62 to 64 degree Celsius and
leaves through the top of the recuperator at 70 to 72 degree Celsius i.e, it was visible that an
approximate increase in temperature of 10 degree Celsius was observed during the process
test run.

78 | P a g e

Process Flow Diagram for Pure Brine PreparationModified system with Chlorine gas
Recuperator (Fig 3.7)

80- 85 degree Celsius Cl2 to

recuperator

Chlorine Gas Recuperator

Caustic Soda

70 72
degree
Celsius
brine

Electrolyser
Cool down Cl2 for further processing
Depleted brine solution
60 65 Degree
Celsius Brine

79 | P a g e

From the diagram above its clearly evident about the process, that after the
installation and usage of the chlorine gas recuperator the performance and efficiency of the
process drastically improved. As explained above, the 80 to 85 degree Celsius heated up
chlorine from the electrolyser is then fed into the shell side of the recuperator, at the same
time the heated up brine solution in the temperature range of 60 to 65 degree Celsius is fed
tube side of the recuperator. As a result of the chlorine gas recuperator, from the tube side
outlet of the recuperator heated up brine solution of 70 to 72 degree Celsius is fed into
electrolyser and at the same time from the shell side of the recuperator cooled down chlorine
gas is emerged within a temperature of 62 to 64 degree Celsius.

Improved Integrated Process Flow Diagram for Brine Preparation (Fig 3.8)

80 | P a g e

Table 3.5 Details showing the operational performance of newly installed chlorine gas
recuperator
Sl. No

Period (in hours)

Brine Temperature

Chlorine temperature

0 to 1

Inlet
61.5

Outlet
71.2

Inlet
84.6

Outlet
66.2

1 to 2

61

70.8

85

65.4

2 to 3

62

72

84.2

65.1

3 to 4

61.5

71.5

85.4

65.8

4 to 5

62.5

71.9

85.6

65.4

5 to 6

62

71.6

84

64.8

Chart 3.5: Graphical representation showing the operational performance of newly

installed chlorine gas recuperator (Brine Temperature variations)

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75

70

65
Brine Inlet Temperature
Brine Outlet Temperature
60

55

50
0 to 1

1 to 2

2 to 3

3 to 4

4 to 5

5 to 6

Chart 3.6: Graphical representation showing the operational performance of newly

installed chlorine gas recuperator (Chlorine Temperature variations)

Chlorine Inlet Temperature

Chlorine Outlet
Temperature

Interpretation:
From the graphical representations and the details form the table explains about the
resultant performance and efficiency by implementing a chlorine gas recuperator in the
process line.
It is clearly evident from the available statistics that, the purpose is succeeded by
implementing recuperator. The temperature range of the brine solution is easily maintained by
the application of hot chlorine through the recuperator the brine solution was able to heat up
to a desired temperature of 70 to 72 degree Celsius also the cooling action of the chlorine is
obtained and maintained in the temperature from 85 to 65 degree Celsius. Hence it is
82 | P a g e

obtained from the test run simulation apparatus that the installation of recuperator works with
the desired efficiency.
Anticipated financial benefits after recuperator installation
Steam consumption

: 1 ton per hour

Steam consumption per day

: 20 MT

Cost of steam

: Rs.3500 per ton

Total cost of steam

: 3500 * 24 = Rs. 70000

Recuperator installation cost

Total steam saving

: Rs. 4 million
: 20 MT per day

So,
Total steam saving
Total saving

: Rs. 70000
: 70000 * 330 days
: Rs. 23 Million per year

Thus, the payback period

: 2.5 months

Interpretation:
From the arithmetic calculations done above, it is evident that the initial capital which
is spend for the installation of the chlorine gas recuperator will be met within a payback time
period of 2.5 months.
It is clearly proved that the 100% of steam is saved during the process of production
in the AGC plant using the recuperator and hence there is considerably a huge financial
benefit for the organization by such an innovation

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This study was very helpful to know about the necessary actions that have to be taken
for the effective implementation of business process reengineering in the production process
of Travancore Cochin Chemicals. This chapter is divided into three parts namely summary,
findings, suggestions and conclusion. Findings contain the inference made from the analysis
of data collected. Suggestions were made based on the findings and finally the conclusion is
drawn which contains the overall summary about the project.

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SUMMARY
Energy is inevitable factor for an organization is concerned. Energy and power always
acts as the backbone of an organization and its is responsibility of the organization to make
the maximum utilization out of it and without wasting any of it and effectively saving and
conserving every part of it for the betterment of the organisation.
For an organization like TCC (Travancore Cochin Chemicals) is concerned energy is
an inevitable factor in their production process. One of the major raw material used for
production in TCC is electricity. About 60% of the production cost of TCC is consumed as
electrical energy. So it is vital for them to use it vigilantly, and it is up to them to conserve the
most of it available.
The project titled A project on Business process reengineering Initiatives and its
financial implications with respect to Travancore Cochin Chemicals Ltd, Udyogamandal,
Ernakulam is being conducted with the aim of studying the factors which causes serious
energy deficiency problems, the areas where there is serious loss or consumption of energy,
area where energy is wasted is identified and the various financial losses that are incurred due
to it, also the additional financial expense that are inured for the organization and the savings
that can be done on the financial aspects to the organization were the major areas and
objectives of the study.
After keen observation and analysis in the various parts of the process in the
organization, it was found that energy is abundantly used and maintained in the organization.
Even if the plants are equipped with the modern technological systems like DCS (Distributed
Control Systems), PLCs (Programmable Logic Controllers) and PACs (Programmable
Automation Controllers) for effective and efficient energy management. Certain areas were
found in the organization where there is considerable amount of energy usage which in turn
out to result in scarcity of energy as a whole and the related financial expense which needed
to bared by the organization was pretty huge.
It was found that, the two major areas were energy is consumed in two forms were in
the AGC plant during the production. First, it was in the electrolysers in the AGC plant which
acts as the heart of the whole production process of the organization. The major final product
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of the organization is Caustic Soda (NaOH) which is extracted from brine by a simple
electrolysis process which is carried out in the AGC electrolysers. It was clearly found that a
lot of voltage consumption was happening over this area and in turn which finally resulted in
huge power consumption by the AGC unit. There were 20 electrolysers that are installed in
the AGC unit and it was observed that each electrolyser consumes about 9.5 V during the
production process and hence it also resultant in huge financial expense incurred in this area
of production due to high power consumption. Second, it was also associated with the AGC
plant, the brine which needed to be fed into the electrolysers for electrolysis needed to be
preheated to the desired temperature level for the optimum and effective and efficient
operation of the electrolyser for the desired output. So, here for the preheating process of the
brine solution steam is the medium which is used. Thus steam is the next form of energy
which is over consumed and needed to be controlled. The steam is produced using a boiler
and it is required in almost various parts of the production process inside the plant. So often
there arises occasional shortage in the supply of steam to the process and when this kind of
situation arises, steam is usually purchased from the neighbouring organization FACT. This is
also an alarming condition because of the finance which is spend on steam for the purpose of
production is huge and it is necessary to find out some solutions to overcome these
conditions. The study and the results were conducted centred on these aspects.

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FINDINGS

From the study, it is identified that a huge electric power consumption is happening

inside the organization (reference : Table 3.1)

From the study, it was mainly understood that there are two reasons for the over
consumption of power during production process in AGC plant, which is due to the
over voltage consumption and due to the infinite gap that exist in the AGC

electrolysers. (Reference: Table 3.1).

From the study, it was found that 9.5 V of voltage is consumed per electrolyser per

day during the production process. (reference: Table 3.1)

From the study, after an observation of 6 days span approximately a mean value of
2188 DC/MT (KWh/t) of NaOH production is carried out by using conventional

infinite gap electrolysers. (reference: Table 3.1)

From the study, it was found that a mean cost of 1.369 million rupees is incurred per

day per 20 electrolysers for production. (reference: Table 3.2)

From the study, using the third step of TOC (Theory Of Constraints) a test apparatus
set up is run for reducing the voltage consumption and in turn the overall power

consumption by modified zero gap electrolysers and it turned out to be effective.

From the study, after test run was conducted on the test apparatus for a period of 6
days it was found that a considerable drop in the amount of voltage consumed.

(Reference: Table 3.3).

From the study, it was also found that there is considerable drop in the mean total of
power consumption to 2128 KWh/t of NaOH when it was under test run. (Reference:

Table 3.3).
From the study, it was found that mean cost incurred per day by 20 electrolysers is

Rs.1.333 million, which is pretty low. (Reference : Table 3.4).

From the study, it was found that 60 KWh/t of power is saved per electrolyser per day

from the test run apparatus.

From the study, the anticipated savings that is calculated will come around Rs. 12

million a year after modifying the whole 20 electrolysers in the AGC plant.
From the study, it was also observed that there is over consumption of steam for the

pre heating purpose of the brine solution before fed into the AGC electrolysers.
It was observed that about 24 metric tonnes of steam is consumed for the preheating
process which leads to shortage of steam source

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It was found that, when there is a shortage in the supply of steam for the production

purpose, steam is purchased from FACT.

It was calculated that Rs.84000 is spend per day on steam for the pre heating purpose

in the AGC plant.

During the test run, it was found that by employing a chlorine gas recuperator will

nullify the usage of steam.

From the study, it was evident that while test run by employing a recuperator the brine
fed in temperature can be elevated to the desired temperature level, also the cooling

action of the chlorine was also easily done (Reference : Table 3.5).
From the study, it is observed that 20 MT of steam can be saved per day by employing

a recuperator.
It was also clear that an amount of Rs. 23 million was able to be saved per year by
installing a recuperator and thus the pay back can be achieved within a period of 2.5
months after installation.

SUGGESTIONS

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Taking into consideration the first problem which was persisting in TCC. After much
observation and analysis done, it was found that there was a huge voltage and power
consumption in the AGC plant. As a test run to reduce such consumption in this area,
zero gap electrolysers was implemented by which the conventional infinite gap
electrolysers was to be replaced by modified zero gap analyzers. It was found that
during the test run of an electrolyser for 6 days there was drastic drop in the power
consumption and hence it finally resulted in huge financial savings per electrolyser.
So, if the organization is going to change and modify the whole array of 20
electrolysers in the AGC plant, it is anticipated that at least Rs. 12 million can be
saved per year.

Now considering the second problem which was the excessive consumption of steam
in the plant. Steam was costly commodity and it is extensively used in the
organization but it was found that there was over usage of it. It was found that it was
over consumed for the pre heating process of brine fed into the analyser. The solution
for this problem is a Chlorine Gas Recuperator. So, as test run was done by bypassing
the process channel with a heat exchanger test apparatus. The heat exchanger acts for
the recuperator. It has tube side and shell side. The working is as follows, the heated
Cl2 gas that is liberated from the electrolyser is already heated up to 85 degree
Celsius and it is needed to be cooled down for Cl2 solution and HCL manufacturing.
So, this chlorine solution can be used as the parameter for pre heating the brine
solution instead of steam i.e, steam can be easily replaced with chlorine gas. Thus in
turn brine is getting pre heated and at the same time chlorine is getting cooled down.
Hence, it is a double benefit that is obtained by the organization. For implementing
such change a Chlorine Gas Recuperator can be installed in the process line and hence
the usage of steam will come down drastically. It was anticipated that there will be an
initial investment of Rs. 4 million needs to spend and due to the savings of Rs.70000
per day on steam is obtained that, the payback period can easily be attained within a
mere time period of 2.5 months.

Another suggestion is, regarding an innovation that can be implemented which will
result in huge financial gain for the organization. As explained above steam is an
inevitable parameter in the production process and it is a costly thing to produce too.
So, in order to save the steam production cost by the boiler. It is suggested to use a
modified boiler system, where the fuel for burning is hydrogen. It was found that

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hydrogen is abundantly produced during the electrolysis process in UHDE-1, UHDE2 and AGC plants during the electrolysis process for the production of caustic and the
usual practise that is followed for disposing of this hydrogen is by burning it out to the
atmosphere. So this hydrogen can be bypassed into the combo boiler system for steam
production. Where the boiler works both on fuel and hydrogen, by which the boiler
starts working with the usual furnace oil and later in the production process when
hydrogen arrives into the boiler, it switches itself into hydrogen mode by firing up
hydrogen and stopping the furnace oil for production and hence a lot furnace oil will
be saved in the process. The financial gain that is obtained by the organization will be
huge by implementing this change of combo fuel system and it also helps in reducing
the atmospheric pollution problems by the re usage of hydrogen in an alternative way.

CONCLUSION

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Operations have been acting as an effective part of all organization since it developed
as a separate field of study. The modern days of competition the success mantra for any
organization is to implement the most efficient and an updated science and technology in
their operations as it is utmost necessary for the growth and flourishing of the same in this
globalized business world.
The project on Business process reengineering Initiatives and its financial
implications with respect to Travancore Cochin Chemicals Ltd, Udyogamandal, Ernakulam is
about the process shortcomings in the current process line of production in the organization
and the financial implication due to it. From study, it is very clear that , if the technologies of
any organisations are maintained properly, the company can avoid a huge financial loss. In
this company, the problems were with its process line of production and because of those
problems, the company had faced huge financial expenses. If the technology is properly
updated in the mentioned firm, this loss can be avoided. Proper monitoring and corrective
actions which are timely done will result in the better working of the organization. The
financial gains which can be attained if is explained above and it is necessary that the
members of the organization to keep themselves updated in the technical world about the
emerging innovations

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1) CR Kothari, Research methodology, 2nd edition, New age International (p) limited,
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10) http://www.unido.org//fileadmin/user_media/Publications/Research_and_statistics/Br
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ANNEXURE
Membrane Cell Electrolysis Process:

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2NaCl + 2H2OCl2 + H2 + 2NaOH

Zero Gap Modification Material:

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Electrolysis Reactions:
The following two types of reactions called brine cell and the soda cell respectively.
Brine Cell
2Cl = Cl2 + e
Na + e = Na
Na + Hg = Na/Hg
Soda Cell
2 Na/Hg + 2 H2O = 2NaOH + H2 + 2Hg

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