ENCHO Theodore Enow

department of manageMENT SCIENCES

OPTION: MANAGERIAL ECONOMICS

HIGHER INSTITUTE OF MANAGEMENT STUDIES

HIMS Buea

PGTC6109 _ ADVANCED PROJECT RISK MANAGEMENT AND FORECASTING

Prof. DOBDINGA Cletus

ASSIGNMENT N 1
Chose a project of your choice and:
 describe the project in terms of their
activities, scope , time and deliveries
 do a risk register assessment
 give observations, conclusions and
recommendations
 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 1 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

Contents

1. INTRODUCTION..........................................................................................................................................1
2. PROJECT DEFINITION..................................................................................................................................2
2.1. Context...................................................................................................................................................2
2.1.1. Manufacturing process.......................................................................................................................2
2.1.2. By-products of electrolysis.................................................................................................................2
2.1.3. Collection and treatment....................................................................................................................3
2.1.4. Motivation of the project...................................................................................................................5
2.2. Scope of the project...............................................................................................................................6
2.3. Stakeholders...........................................................................................................................................7
2.4. Project life cycle......................................................................................................................................7
2.5. Project schedule.....................................................................................................................................8
2.6. Deliverables of the project.....................................................................................................................9
3. RISK ASSESSMENT OF THE PROJECT...........................................................................................................9
3.1. Risk register assessment.......................................................................................................................10
3.2. Observations and recommendations....................................................................................................10
4. CONCLUSION............................................................................................................................................10

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics

 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 2 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

1. INTRODUCTION
In the electrolysis process for the production of aluminum metal, Fume (fluorinated gases) is
released as by-product. It is collected from the entire potline, transported through a ramified
pipeline to two treatment stations. The uncollected and untreated gases released to the
environment. The collection and treatment efficiency is the major indicator for the evaluation of
the pollution rate and the performance of the process. This efficiency is proportional to the flow
rate of the released gases at the chimney.
Since December 2009, the normal flow rate has decreased to present averages of 11.83 Nm 3/s
and fluctuating to standard deviations of 0.24 Nm 3/s. The collection efficiency has reduced to an
average 68.92%. The key parameters to control in case of variation are not well mastered. The system
performance can deteriorate at any moment without any efficient intervention to bring back situations to
normal

This project entitled “Control of Fume normal flow rate of the treatment stations CC1&2 of the
ALUCAM Edea Aluminium production plant” consists of putting into place a control system which
σ
will increase this flow rate from 11.83 ± 3 σ Nm3/s to 13.5 ± 3 Nm3/s and keep related process
2
parameters within target limits.

2. PROJECT DEFINITION
2.1. Context
2.1.1. Manufacturing process
The gases collected at the hoods is a by-product of the manufacturing of Aluminum metal by use of the
electrolysis process below:

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics

 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 3 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

FIG 1: Collection and treatment process

2.1.2. By-products of electrolysis

An ideal aluminum electrolysis process involves the reaction of Alumina with carbon (from the cathode) to
give pure aluminum and carbon dioxide gas.

2 Al 2 O 3(liquid) +3 C(solid) direct current 4 Al (liquid )+ 3CO 2(gas)

→
In real industrial situations, due to inevitable instability factors, this primary reaction is accompanied by
some secondary reactions. This gives rise to the release of different gases classified as pollutants by
environmental standards.
When there is insufficient carbon (anodes consumed), we have:

2 Al (liquid) +3 CO 2(gas) ❑ Al 2 O3(liquid) +3 CO(gas)

→

Insufficient alumina also provokes the formation of carbon monoxide

Al2 O3(liquid) +3 C(solid ) direct current 2 Al(liquid) +3 CO(gas)
→
Water molecules from poorly baked anodes, moist Alumina or cryolite will provoke the formation of
hydrogen fluoride.

Al F 3(liquid )
+3 H 2 O(gas) ❑ Al 2 O3(liquid) +6 HF (gas)
→

A large increase in pot temperature due to spontaneous increase in pot resistance is termed anode
effect. This causes the production of fluorocarbons.
−¿+ C F 4 ¿
−¿+C ❑ 4 e (gas)
¿
4F →

The presence of sulphur produces sulphur dioxide by combustion.

S(solid) +O2 ❑ SO2
(gas) (gas )
→

Dust particle made of carbon dust and fluoride particles also form part of the side products that is being
released to the environment.

The set of all these gases including dust particles gives FUME.Alucam produces fume at the rates given in the
table below [2].

Pollutant Production rate (kg/tAl)

Hydrogen fluoride,HF (gas(Fg) and particles(Fp)) 20 - 25
Dust particles(Pt) 30
Sulphur dioxide, SO2 30
Fluorocarbons (CF4 , C2F6) 1.3
Carbondioxide (CO2) 1400
Carbonmonoxide (CO) 100

TAB 1: Electrolysis pot gases and related quantities

These gases have devastating short term and long term effects on our environment

Short term health and genetic problems on the nature in the pollution perimeter of the company.
Destruction of the ozone layer

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics

 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 4 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

Emission of Greenhouse Gases causing global warming

2.1.3. Collection and treatment

At the industrial level, there exist two main reasons for the collection and the treatment of these gases.

Respect of the environmental standards mentioned above in order to maintain product quality and the
image of the company in the international market.
Fume contains the fluoride component which is a raw material to the electrolysis process. Each kg/tAl of
fume contains about 1.42% of fluoride (gases and particles). The treatment of fume permits the recycling
of this quantity

The PECHINEY AIR INDUSTRY’s technology for the collection and treatment of gases is based on the principle
of dry scrubbing (surface adsorption of fluoride gases by alumina particles) and filtration (separation of
fluorinated alumina and dust particles from treated gases). The process is shown below:

FIG 2: Collection and treatment process

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics

 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 5 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

The system is made up of two main parts:

Two similar piping networks each covering two and a half potlines each.
Two similar treatment stations CC1 and CC2 for each piping network.

The collection system consist of a ramifying network of pipes spread over the 274 pots of the A, B, C, D, E
and F potlines. Each station covers 137 pots. Each header is divided into 5 branches each uniting groups of
27 or 28 pots. Each of these groups collect from subgroups of 13 or 14 pots and finally each subgroup collect
from 6 or 7 pots. To each pot are two suction mouths called hoods. Two hoods of adjacent pots join to a
vertical collector into the subgroup pipe.

2.1.4. Motivation of the project

The efficiency of the collection network is the main indicator of the performance of the treatment
stations. The efficiency actually gives the quantity of fluoride captured relative to the quantity produced.
Since there is no technique to measure the quantity of fluoride in fume, this is determined indirectly from
the amount of COx (per ton of Aluminium produced) relative to the amount of carbon consumed.

amount of fluoride production ∝amount of CO x production

This gives [3]

12 ( CO+CO 2 ) QN
η ct=
22.4 ( tAl CC 1 ) Cnet

η ct = weekly collection and treatment efficiency

CO+ CO2 = Quantity of (CO+CO2) (kg/month
QN = weekly Normal flow rate ( Nm3/s)
tAl CC 1 = tons of aluminium produced for CC1 potlines/month
C net = net carbon consumed/month

Amongst the other parameters which determine this efficiency, is the NORMAL FLOW RATE OF FUME, Q N
measured at the chimney. Provided all the other parameters are optimally managed, the collection and
treatment efficiency will depend directly on the flow rate.
Hence the importance of maintaining the flow rate at a predefined target for optimal system performance.
The graph below gives the variation of fume normal flow rate at the chimney (from 01/01/2008 to
30/04/2010) determined by the HSE measurement team.

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics

 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 6 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

Variation of flow rate at chimney outlet

15.50
15.00
14.50
Fume flow rate (Nm3/s)

14.00
13.50
13.00
12.50
12.00
11.50
11.00
08 08 08 08 08 08 08 08 08 08 08 08 09 09 09 09 09 09 09 09 09 09 09 10 10 10
/20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
1 2 3 4 5 6 7 8 9 0 1 2 1 3 4 5 6 7 8 9 0 1 2 1 3 4
/0 /0 /0 /0 /0 /0 /0 /0 /0 /1 /1 /1 /0 /0 /0 /0 /0 /0 /0 /0 /1 /1 /1 /0 /0 /0
01 03 07 09 12 14 17 19 21 24 26 29 31 05 07 10 12 15 17 19 22 24 27 29 03 05
FIG 3: Evolution of normal flow rate measured at the chimney outlet by the HSE team

This illustrates the continuous decrease and fluctuation of the flow rate. This has lead to present
averages of 11.83 Nm3/s and standard deviations of 0.24 Nm3/s (April 2010 data)

These poor results are caused by two main factors:

Factor 1. The system and its Factor 2. System of measurement

management policy
The technology of the system Types of equipments used
The way systems are being operated Capabilities of these equipments
System cleaning Data treatment methods
Maintenance Measurement personnel
Poor mastery of control parameters

TAB 2: Factors causing the decrease in flow rate of fume gases

When the efficiency varies, it has a direct effect on the functioning of the entire production system and is an
indication of the poor functioning of the fume collecting network and mechanism. The main consequences
are:

Non respect of international standards

Caution from the Alucam main shareholders (Rio Tinto Alcan) on the non-respect of their targets and
objectives based on national and international laws and conventions on environmental pollution. A
non-respect might lead to the closing up of the Alucam factory.
Managerial effects

Degradation of equipments in the collection and treatment of fume. This leads to very high
management and maintenance costs on the sector
The efficiency of resolution of other factors affecting the production and management of pollutants are
not felt thus causing extra investments.
Effects on the environment

An increased pollution of the environment surrounding the factory which may lead to classical effects
on the vegetation, animal and human population in Edea and its environs. This can be observed in the
vegetation around the industry.

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics

 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 7 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

Short term and long term devastating effects on the natural environment found in the pollution
perimeter of the company. This might lead to different illnesses.

2.2. Scope of the project

The Normal flow rate at the chimneys have to be increased to an average greater than 13.5 Nm 3/s.
and stabilised to a standard deviation of 0.12 Nm 3/s. In the framework of this problem and within
the dateline specified by the project charter, our work had the following objectives:
Identification and classification of the potential process parameters influencing the normal
flow rate at the chimney.
Correction and elimination of the fundamental causes of this problem
Establishment of a reliable control system to be used for the continuous stabilisation of the
haphazard and poorly mastered variations recorded so far.
Hence the amelioration of the efficiency of the fume collection and treatment process and
the reduction of environmental pollution.
Prior to the above mentioned challenges, our work will be focused on:
I. A scrupulous audit of the entire production, collection, treatment and measurement
process of fumes which will involve the use of mathematical and quality analysis tools.
II. Putting into place of a cost effective control system requiring the use of statistical tools
for the control of industrial processes.

2.3. Stakeholders
This project has two categories of Stakeholders: Internal and External
Internal Stakeholders External Stakeholders
The Surintendent of Electrolysis Wolrd Health Organisation
Departement Cameroonian Government
The Chief of Service of the Relining and Ministry of environment
Gas treatment Service International systems organization, ISO
The Gas treatment Team External clients and Suppliers
Maintenance Services The Gas treatment Sector
Production Services Subcontractors
The Edea community

TAB 3: List of project Stakeholders

2.4. Project life cycle

The project life cycle was based on the methodology of Lean Six Sigma continuous improvement of
industrial processes. This comprises five main steps: DEFINE, MEASURE, ANALYSE, IMPROVE and
CONTROL. These steps are related to the major phases of a project life cycle as follows:

N° Project life Lean Six Activities carried out

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics

 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 8 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

cycle phase Sigma step

 Define the project charter containing the specific goals and
achieving outcomes that are consistent with both the
1 Initiation
customer's demands and the company’s business strategy.
 Put into place the project management team and organisation
DEFINE  Elaborate the planning of the project and the deliveries
 Do a financial analysis and estimate the budget
Organization
2  Elaborate the quality control plan
and Planning  Elaborate the communications plan
 Assess the risks and elaborate the risk management plan
 Identify the process parameters to be measured and controlled
 Elaboration of a data collection plan
MESURE  Taking of accurate measurements from the process in order to
determine a base measurement.
 Relevant data and information collection
 Use of relevant quality improvement tools to analyses the
process
ANALYSE
3 Execution  Use of statistical tools analyze the data collected
 Identify the causes of variation from the results of the analysis
 Propose and develop solutions in order to eliminate the
identified causes
 Elaborate an implementation plan including the resource
IMPROVE
allocation
 Purchase materials and follow-up the delivery
 Deploy teams and resources to concretize the solutions on site
 Put into place control techniques to make sure the desired
Monitoring results have been attained
4
and control  Train teams in the exploitation of new equipments and
methods of control
CONTROL
 Do a budget evaluation of the expenditures of the project
 Elaborate the report of the project and submit for validation
5 Closing
 Prepare and archive all related documents
 Terminate the project with a closing meeting

TAB 4: Project life cycle andits activities

2.5. Project schedule an d financials

Phases and Tasks of the project Duration Completion Related cost
(days) date (FCFA)
D-1 Field walk on presentation of general functioning of the 1 08/04/10 1 400 000
aluminium production process
D-2 Reading of documents on collection and treatment 2 09/04/10
installation
DEFINE

D-3 Field walk on presentation of treatment station 1 09/04/10

D-4 Introduction to theme by supervisor 2 13/04/10
D-5 Reading of documents on measures, environmental 6 17/04/10
pollution
D-6 Elaboration of project charter 7 30/04/10

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics

 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 9 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

D -7 Presentation of project charter 1 30/04/10

M-1 Field work with collection team 1 13/04/10
M-2 Discovery of data profile of the collection and treatment 5 17/04/10
MEASURE

parameters
M-3 Field work on presentation of piping network 1 14/04/10 1 470 000
M-4 Field work with HSE team 2 17/04/10
M-5 Measurement campaign with collection team 2 30/04/10
M-6 Special measurements for system analysis and modelling 10 14/05/10
A-1 Audit of present system state 2 04/05/10
A-2 Statistical audit of process parameters 5 08/05/10
A -3 Mathematical modelling of system 10 15/05/10
ANALYSE

A-4 Choice, purchase and installation of simulation software 1 18/05/10

2 100 000
A -5 Study of functioning of new software 2 20/05/10
A -6 Classification of system parameters 4 25/05/10
A -7 Financial analysis of project resolution 5 27/05/10
A -8 Presentation of work done 1 28/05/10
I -1 Choice of control parameters 3 18/05/10
IMPROV

I -2 Reconfiguration of system 2 20/05/10

9 441 000
I -3 Design of an SPC for the system 5 25/05/10
I -4 Presentation of work done 1 28/05/10
C-1 Simulation working session 4 04/06/10
C-2 Rehabilitation of system equipment 8 12/06/10
CONTROL

C-3 Practical verification of new control system 6 15/06/10

2 772 650
C -4 Elaboration of control plan 3 19/06/10
C -5 Final presentation 1 30/06/10
C-6 Preparing of final report 10 10/07/10
TOTALS 114 days 17 183 650FCFA

TAB 5: Activities and cost scheduling

2.6. Deliverables of the project

This project was aimed at controlling the normal flow rate variations of fume gases at the
treatment stations of the Electrolysis potline. In the course of the life cycle of the project, the
following results were obtains as deliverables:
 A detailed scientific model explaining how and why the flow rate behaves the way it does
over a budgetary period or production in the Electrolysis department
 A modification of the command system that controls the injection of air at the treatment
stations in order to optimize the cleaning of the filtering compartments
 The identification, dimensioning and installation of an inlet vane damper at the level of
the suction fan ,in order to control the suction speed at the Hoods and in the pipeline
 An elaborated control plan for the monitoring and correction of the system parameters
each time they go away from control limits
 Design and programming of an Excel VBE tool for the simulation of the flow rate as a
function of the program of stoppage of electrolytic pot cells

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics

 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 10 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

3. RISK ASSESSMENT OF THE PROJECT

3.1. Risk breakdown structure of the project

Level 0 Level 1 Level 2

Lack of prioritization of projects
Inadequacy or interruption of funding
Poorly developed and trained workforce
Organizational
Resource conflicts amongst projects
Reorganisation of personnel
Resistance to change
Inadequate measurement system
Unrealistic performance goals
Technical Unadaptable technology
Project risk Errors in analysis / calculations
Delay in supply of equipments
Variations in market price
External Weather conditions
Unanticipated noise impacts
Increased pollution of air
Environmental
Poor allocation of time and resources
Inadequate quality of the project plan
Lack of project manager delegated authority
Project management
Conflicts of interest

3.2. Risk register assessment

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics

 Date: 06/01/22
Control of fume normal flow rate of the treatment stations Page: 11 / 12
CC1&2 in the ALUCAM Edea Aluminium production plant Rev. 00

3.3. Observations and recommendations

4. CONCLUSION

ENCHO Theodore Enow Academic year 2021/2022 EMBA – Managerial Economics