Training Report Assistant Refinery

Accounting

Oleh :

Ferdi Fajrian Adicandra

Trainee Refinery Assistant

PT. STEELINDO WAHANA PERKASA

Ds. Senyubuk, Kecamatan Kelapa Kampit
Kabupaten Belitung Timur
2017
Accounting division in PT Steelindo Wahana Perkasa Refinery has a function to
make report about company cash flow such as capital expenditure, indirect cost and
operational cost, conducting bookkeeping activities that support production
process. One of the function from this division is to make daily report in order to
know the production process in that day which later will be merged so that the
results obtained for a month and for a year production process.

1. Things that I have learned:

Daily Report
Daily report was made to get representation of how the production process takes
place. Determining whether the production process running well or not can be seen
from daily report. Making daily report is important to do in order to monitor the
production process and be able to control the process to be running efficiently in
terms of quantity of product and use of utilities therefore can minimize cost
production but still maintain the quality and quantity of the product. To make daily
report, there are several things that you have to do, some of them are :
1. Sounding and Deeping
This activity is conducted to find out the contents of storage tanks in PT Steelindo
Wahana Perkasa Refinery. The procedures performed are as follows:
a. Read the level indicator on the tank
After reading the indicator level, a tank height reduction with the numbers
indicated on the indicator level and added the result with 30 cm to determine the
length of tape measure to be immersed in the tank and ensure that the tape measure
has been immersed into the liquid in the tank.
b. Measurement with tape measure
After obtaining the length required to perform the measurement, the tape
measure is inserted through the hole above the tank. Then the tape measure will be
stopped at the value of the reduction result. Once discontinued, then the tape
measure is reappointed to see the height of the meter being immersed by the liquid
in the tank. If the liquid in the tank on the tape measure is difficult to see, a chemical
in Figure 1c can be used so that the liquid in the tank attached to the tape measure
can be clearly visible. Record the tape measure initial length until it is stopped at
the value of the reduction result and the height of the liquid on the tape measure and
the measurement of the tank temperature at the top, middle and bottom. Make
measurements at least 2 times for each tank.

(a) (b) (c)

Figure 1. (a) Level Indicator (b) Process of measurement (c) Chemical to give a
colour on tape measure
c. Calculation of volume tank content
After that, the data has been obtained used to calculate the contents of the tank.
First, the required tape measure length is subtracted by the length of the meter being
dyed by the liquid. Then from the result, all the numbers except the unit number,
are equated with the conversion table shown in Fig. 2a, while the unit number of
the subtraction is compared to the conversion table in Figure 2b. Thereafter, the
conversion reading results of figure 2a are subtracted from the conversion results
of figure 2b, and the volume of the tank content is obtained. The next step is to
convert from volume units to mass units with the help of density. Since the density
of each compound depends on its temperature value, a conversion table and
correction factor as shown in Figure 2c are required.
 (a)

(c)

(b)
Gambar 2. (a) Conversion Table Other than Unit (b) Unit Conversion Table
(c) Density and Correction Factors

2. Raw Material Quality Testing (CPO) and Products (RBDPO, Olein, Stearin and
PFAD)
Every CPO that goes to PT SWP Refinery should be examined its quality such
as FFA, M & I, P.V, I.V and Colour. This is done to obtain the characteristics of
the CPO that will affect the production process of PT. SWP Refinery. Checking is
done in an effort to maintain the quality standards of CPO to be processed by PT.
SWP Refinery, because PT. SWP Refinery has several suppliers for CPO so it is
important to do periodic inspection. The same is done on RBDPO, PFAD, Olein
and Stearin products to keep the product quality as desired by the market.
3. Weighbridge System
All delivery process from supplier to PT SWP Refinery, jetty to PT SWP Refinery
or from PT. SWP Refinery to jetty, all done by truck. So we need a weighbridge
system to know the amount of CPO received by PT SWP Refinery either from jetty
or from supplier, and the amount of product sent to jetty for shipment process.
4. Reading Process
The process of reading has almost the same function with the sounding and
deeping process, namely to know the amount of CPO in the consumption and the
number of products produced. However, the implementation is different, when
sounding is done by using manual method, while reading uses flowmeter for the
measurement. The reading process also has a function to know the amount of CPO,
Olein, and Stearin that are still in the production process tanks as well as the number
of utilities used during production such as Steam, Electricity, Water, Phosphoric
Acid, Bleaching Earth, and Biogas.

The data obtained can be used to determine the amount of Crude Palm Oil (CPO)
processed for one day. Then we can get the number of products produced during
the day, such as the amount of Refined Bleached Deodorized Palm Oil (RBDPO),
Palm Fatty Acid Distillate (PFAD), Olein, and Stearin. After getting the amount of
CPO used for production and the amount of products produced, it can be seen how
the yield of each product. The value of this yield is very important in the production
process, because the greater the yield value of the desired main product (Olein) the
more the amount of Olein produced and it can illustrate that the process runs
optimally. A good yield of Olein and Stearin is maintained at 80% and 20%,
respectively, if the yield of olein produced is well below 80%, there is a problem in
the Dry Fractionation process. In addition to Olein and Stearin yields, yields of
RBDPO and PFAD are also worth noting. A good PFAD yield is close to the value
of the FFA contained in the CPO. If the value obtained is much different from the
FFA content of the CPO then there is a problem in the production process at
Refinery Plant.

Production Cost :
After getting a daily report, then the data in daily report can be processed to find
out how much it costs to do the production process. The cost of production process
calculated here is the cost for the needs of steam, electricity, biogas, bleaching earth,
phosphoric acid and water. Here is a price list of utilities for the production process
as of November 2017:
Utilities Price (Rp)
Steam 41.7 /kg
Electricity 282.93 / kWh
Biogas 471.05 /m3
Bleaching Earth 4118.18 /kg
Phosphoric Acid 14603.54 /kg
Water 2857.6 /m3

From data in daily report dated November 30, 2017 with CPO processed of 776,670
MT, obtained data consumption utilities per MT CPO processed are as follows:

Utilities Consumption
per MT CPO
Steam 91. 42 kg
Electricity 11.68 kWh
Biogas 8.01 m3
Bleaching Earth 16.1 kg
Phosphoric Acid 0.43 kg
Water 0.11 m3

Calculation of production costs can be done using both data so that the resulting
production costs per MT CPO processed as follows:
 Utilities Cost per MT
CPO (Rp)
Steam 7533.52
Electricity 5378.5
Biogas 3773.09
Bleaching Earth 66302.7
Phosphoric Acid 6279.52
Water 314.34
Total 89581.67

70000 66302.7

60000

50000

40000

30000

20000
7533.52 5378.5 6279.52
10000 3773.09
314.34
0

Steam Electricity Biogas Bleaching Earth Phosphoric Acid Water

So the production cost needed to process 1 MT CPO is Rp. 89581.67. When viewed
from the graph, the biggest cost is in the use of bleaching earth that is Rp 66302.7/
MT CPO.

2. Problems that found :

1. Production costs for the use of bleaching earth are enormous.
2. In the report on the results of the reading on the Dry Fractionation Plant, there is
data that is difficult to get an accurate value because it is only seen with the eyes
alone without the aid tool, so tend to guess. Example : data on Stearin Melting Tank.
3.Sollution that Provide:
1. The need for bleaching earth is highly dependent on the amount of CPO and CPO
quality being processed. If the amount of CPO processed large, then the need for
bleaching earth will be great, so if the quality of CPO is processed less good, then
bleaching earth is needed will be large. The use of bleaching earth is difficult to
reduce because it depends on the quantity and quality of CPO, but for the amount
of bleaching earth purchases we can reduce by doing the spent bleaching earth
regeneration which has only been thrown away and pay a third party to process it
as B3 waste. By undergoing the regeneration of spent earth, the result of this
regeneration has the ability as an adsorbent that is not much different from the new
bleaching earth, so it can still be reused for the next bleaching process. So it can
reduce the purchase of new bleaching earth, because bleaching earth needs can be
fulfilled with the use of the earth spent regeneration. Then in spent earth there is
still oil with an average oil content is 20%. In this regeneration process, we can get
oil that is still contained in bleaching earth. The oil can be sold as raw material for
the manufacture of non-food materials such as bio-lubricant, and can be used as raw
material for making biodiesel. Here is a proposed scheme of the process of
regeneration of bleaching earth:

Figure 3. Process of Spent Bleaching Earth Regeneration

2. To increase the accuracy of data on stearin melting tank, can be done 2 ways:
First is to increase the level of indicator in the stearin melting tank so it can be
known how many levels of fluid in the tank. The second way can use sounding
and deeping method, by knowing the shape and dimension of the storage tank, we
can find the volume that is in the tank by using the height of the liquid. Then it
can be converted from volume units into mass units by using density. This is to
avoid mistakes in reading the volume of stearin which will affect the value of the
yield in the process of making daily report.