improved manufacturing of honey-based products · honey price +15%-15% non-discounted cash flow...

1
4 2 1 1 -4 -1 -1 -1 -4 -2 0 2 4 Change in ROI (%) Pectin Price Operator Wage Capital Cost Honey Price +15% -15% Non-Discounted Cash Flow Diagram Improved Manufacturing of Honey-Based Products Alexander Boyd George Hauser Thayne Hebb Reginald Raymond Process Advantages Ø Improved process automation Ø Improved Safety and Ergonomics Ø Scalable Design Ø Eliminates Process Bottleneck Ingredient Dispensing Glucose Cooking Honey Cooking Mixing and Evaporation Gelling and Active Ingredient Addition Client: Mr. Scott Spencer, Ms. Jane Annear, and colleagues at Island Abbey Foods Course Instructor: Dr. Michel Couturier P.Eng Mentors: Dr. Guida Bendrich P.Eng, Dr. Felipe Chibante and Mr. Dave Tracey P.Eng Additional UNB Staff: Sylvia Demerson Locke and Karen Annett Project Summary Ø Removes water to meet required gummy sugar content Ø Uses a rotating scraper blade to handle high viscosity fluids Process Description Economics Conclusions and Recommendations Continuous Cooking Acknowledgements Project Objectives Ø Primary objective of the project was to design an improved cooking process for multivitamin gummies, capable of producing 4000 kg/day. Additional design objectives included: Technology and Process Selection Ø Two designs were carried through all stages of the project, being continuous cooking and batch-to-continuous cooking. Ø Due to lower operating costs and greater scalability, the continuous process was recommended as the primary design. Loss-in-Weight Automatic Feeder Ø Uses a loss-in-weight controller for precision measuring Ø Prevents contamination of ingredients Bulk Hopper Load Cell Extruder Process Advantages Ø Lower Process Complexity Ø Established Cooking Technology Batch-to-Continuous Steam Kettle Cooking Ø Steam heated jacket for uniform heat transfer Ø Batch operation Gummy Production Overview Thin-Film Evaporator Feed In Concentrate Out Vapor Condensate Steam Design Features Automated ingredient feeders to reduce batch variability Economics Summary Ø Class V cost estimate, -50% to +100% accuracy was completed. Ø Continuous process was calculated to be more economically viable than the Batch to Continuous Process. FDA Approved Food-Grade Materials 4 cycle clean-in place (CIP) system 4000 kg production in a 12-hour daily operation Island Abbey Foods Ø Prince Edward Island based company specializing in honey-based products. Ø Products include multivitamin gummies and menthol lozenges. The facility operates as a contract manufacturer, along with their in- house brand, Honibe® Scraped Surface Heat Exchanger Ø Rotating shaft to reduce fouling and increase heat transfer Ø Fast continuous cooking method ISLAND ABBEY FOODS® Cold Mixture Hot Mixture Steam Condensate Reducing batch variability by improving process parameter control Optimizing fluid transportation with an in- place cleaning system Improving operator safety and reducing the risk of product cross-contamination Feed In Optimized fluid transfer and increased operator safety Continuous Process was selected as the proposed process given its increased scalability, lowered batch variability and inherent safety Continuous Operation Doubled production capability to 4000 kg per 12 hours Removed operator burden of manual fluid transport Economic Viability $850k in Operational Savings Payback Period: 4.8 years ROI: 14% Improved Product Quality Scalable Design Automatic control improves product consistency Temperature and pH control reduces process variability 24-hour operation doubles production to meet further demand increases Increasing depositor capacity will reduce operating costs $2.9M Capital Investment $850K Savings in Operating Cost Annual Operating Cost: $3.8M Class V Estimate: +100% -50% Operational Expenses Sensitivity Analysis Batch process required an additional $300K in cleaning chemicals Decision Matrix was used to objectively select the most appropriate process Continuous Process results in savings of $850k/year Fully Continuous Process - Payback period: 4.8 years - Return on Investment (ROI): 14% IRR: 12% ROI: 14% Payback Period: 4.8 years Operational Life: 15 years $- $1 $1 $2 $2 $3 $3 $4 $4 $5 Continuous Batch to Continuous $MM CAD Utilities Maintenance Operating Labour Raw Materials Millions (CAD) Years -4 -2 0 2 4 6 8 0 5 10 15 20

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Page 1: Improved Manufacturing of Honey-Based Products · Honey Price +15%-15% Non-Discounted Cash Flow Diagram Improved Manufacturing of Honey-Based Products Alexander Boyd George Hauser

4

2

1

1

-4

-1

-1

-1

-4 -2 0 2 4

Change in ROI (%)

Pectin Price

Operator Wage

Capital Cost

Honey Price+15%-15%

Non-Discounted Cash Flow Diagram

Improved Manufacturing of Honey-Based Products

Alexander Boyd George Hauser Thayne Hebb Reginald Raymond

Process AdvantagesØ Improved process automationØ Improved Safety and ErgonomicsØ Scalable DesignØ Eliminates Process Bottleneck

Ingredient Dispensing

Glucose Cooking

Honey Cooking

Mixing and Evaporation

Gelling and Active

Ingredient Addition

Client: Mr. Scott Spencer, Ms. Jane Annear, and colleagues at Island Abbey Foods Course Instructor: Dr. Michel Couturier P.EngMentors: Dr. Guida Bendrich P.Eng, Dr. Felipe Chibante and Mr. Dave Tracey P.Eng Additional UNB Staff: Sylvia Demerson Locke and Karen Annett

Project Summary

Ø Removes water to meet required gummy sugar content

Ø Uses a rotating scraper blade to handle high viscosity fluids

Process Description

Economics

Conclusions and Recommendations

Continuous Cooking

Acknowledgements

Project ObjectivesØ Primary objective of the project was to design an

improved cooking process for multivitamin gummies, capable of producing 4000 kg/day. Additional design objectives included:

Technology and Process Selection

Ø Two designs were carried through all stages of the project, being continuous cooking and batch-to-continuous cooking.

Ø Due to lower operating costs and greater scalability, the continuous process was recommended as the primary design.

Loss-in-Weight Automatic FeederØ Uses a loss-in-weight

controller for precision measuring

Ø Prevents contamination of ingredients

Bulk Hopper

Load Cell

Extruder

Process AdvantagesØ Lower Process ComplexityØ Established Cooking Technology

Batch-to-Continuous

Steam Kettle CookingØ Steam heated jacket for uniform

heat transferØ Batch operation

Gummy Production Overview

Thin-Film EvaporatorFeed In

Concentrate Out

Vapor

Condensate

Steam

Design FeaturesAutomated ingredient feeders to reduce batch variability

Economics SummaryØ Class V cost estimate, -50% to +100% accuracy was

completed.Ø Continuous process was calculated to be more

economically viable than the Batch to Continuous Process.

FDA Approved Food-Grade Materials

4 cycle clean-in place (CIP) system

4000 kg production in a 12-hour daily operation

Island Abbey FoodsØ Prince Edward Island based company

specializing in honey-based products.Ø Products include multivitamin gummies and

menthol lozenges. The facility operates as a contract manufacturer, along with their in-house brand, Honibe®

Scraped Surface Heat Exchanger

Ø Rotating shaft to reduce fouling and increase heat transfer

Ø Fast continuous cooking method

ISLAND ABBEYFOODS®

Cold Mixture

Hot Mixture

SteamCondensate

Reducing batch variability by improving process parameter control

Optimizing fluid transportation with an in-place cleaning system

Improving operator safety and reducing the risk of product cross-contamination

Feed In

Optimized fluid transfer and increased operator safety

Continuous Process was selected as the proposed process given its increased scalability, lowered batch variability and inherent safety

Continuous OperationDoubled production capability to 4000 kg per 12 hoursRemoved operator burden of manual fluid transport

Economic Viability

$850k in Operational SavingsPayback Period: 4.8 yearsROI: 14%

Improved Product Quality Scalable DesignAutomatic control improves product consistencyTemperature and pH control reduces process variability

24-hour operation doubles production to meet further demand increasesIncreasing depositor capacity will reduce operating costs

$2.9M Capital

Investment

$850K Savings in Operating

Cost

Annual Operating

Cost: $3.8M

Class V Estimate:

+100%-50%

Operational Expenses Sensitivity Analysis

Batch process required an additional $300K in cleaning chemicals

Decision Matrix was used to objectively select the most appropriate process

Continuous Process results in savings of $850k/year

Fully Continuous Process - Payback period: 4.8 years- Return on Investment (ROI): 14%

IRR: 12%ROI: 14%

Payback Period: 4.8 years

Operational Life: 15 years

$-

$1

$1

$2

$2

$3

$3

$4

$4

$5

Continuous Batch toContinuous

$MM

CAD

UtilitiesMaintenanceOperating LabourRaw Materials

Mill

ions

(CAD

)

Years

-4

-2

0

2

4

6

8

0 5 10 15 20