Department of Chemical Engineering

EASTERN VISAYAS STATE UNIVERSITY

Main Campus-Tacloban City

PRODUCTION OF BIODIESEL FROM MICROALGAE

CHLORELLA PROTOTHECOIDES

By
CONDES, PHILIP JOHN V. AND OREVILLO, RHEA C.
BSChE-5A
A PROGRESS REPORT for
A Conceptual Undergraduate Plant Design (ChE 523) submitted to
JUVYNEIL ECHON CARTEL, MEngg ChE
Adviser
In partial fulfillment of the requirements for the degree of
Bachelor of Science in Chemical Engineering

October 21, 2016

CHAPTER 2
MANAGEMENT

2.1 Pre-Operating Period

During the beginning of the pre-operating period, the project managers will hire
applicants nationwide for the finance officer, marketing officer, human resource officer and
project engineers as the plants highest organizational positions. And after that, such positions
will hire for other plant workers from the locality having their compensations and
schedule determined.

Organizational Chart
(Pre-Operating Period)
President/Project
Originators

Administrative
Aide/ Secretary

Human Resource
Officers

Project Engineers

Chemical
Engineers

Finance
Officers

Civil Engineers

Electrical
Engineers

Fig. 2.1 Organizational Chart

2.1.1

Organizational Functions (Pre-operating Period)

President/ Project Originators - The one proposed and promotes the project.
Responsible for the planning, managing, directing and controlling stages during the preoperating period.
Administrative Aide/Secretary - Aids the president in terms of paper works and
decisions. Responsible for keeping the documents, office records, human resource evaluation and
hiring evaluation forms.
Finance Officer - Hired to assess funds during the pre-operating period. Responsible for
the security, budget and financial reports regarding the maintenance of the monetary accounts.
Human Resource Officer - Responsible for the hiring of employees. In charged for the
evaluation, examination and interviews for job employment.
Project Engineers - Responsible for the supervision in terms of schedule preparation,
pre-planning and resource forecasting and other technical activities during the pre-operating
period.
Civil Engineer - Responsible for the supervision of the construction of buildings and site
development.
Chemical Engineer - Responsible for the supervision the proper installation of
equipments and machineries.
Electrical Engineer - Responsible for the supervision of electrical installation and proper
lay-outing of wires.
Pre-operating Period shall consist of two major categories. These are pre-construction
and construction.
2.1.2

Pre-Construction and Construction Period

The development of the project will cover two phase categories during the preoperating period, the pre-construction and construction period.
During the pre-construction, the said company is to procure the necessary requirements
for land acquisition prior to the projected plan. Likewise the clearing of flora and fauna and
displacement of residents within the projected area if necessary.

Also, Community awareness or Public information dissemination regarding the

construction site and plan it covers are likewise provided.
The hired contractor will have an initial plan in seeing requirements of the construction
plan. During construction, the following task as stated in the below table shall be accomplished

2.1.2 Time Table

For Pre-Operating Period
Pre-Operating Period
Phase Category

Pre-Construction Period

Construction Period

Activities
Planning and Appointing of
Positions
Land Permit and Construction
Permit Procurement
Environmental Permit
Procurement
Community Awareness
Site Preparations
(Clearing of Flora and Fauna)
Trailblazing and Groundbreaking
Construction of Production
Building
Construction of Department
Buildings
Equipment and Machinery
Procurement
Electrical Wirings and Equipment
Installation
Drainage and Water Resource
Pipelines
Paintings and Development
Job Hiring
Job Training
Dry Run Testing
Start Up

Duration
5 Months
3 Weeks
3 Weeks
1 Month
3 Weeks
2 Weeks
1 Year
1 Year
4 Months
1 Month
1 Month
2 Weeks
1 Month
1 Month
1 Month
1 Month

2.2 Operating Period

Organization Chart

President

(Operating Period)

General
Manager
Secretary
Resident
Manager
Production and
Quality
Department
Production
Manager

Operations
Manager

Production
Supervisor
Quality
Analyst

Operations
Manager

Administrative
Manager
Administrative
Supervisor
Accountants

Sampler

Marketing
Department

Finance
Department

Maintenance
Supervisor

Cashier

Marketing
Manager

Human
Resource
Manager

Marketing
Supervisor
Sales
Representati
ve

Human
Resource
Department

Human
Resource
Supervisor

Fig. 2.2 Organization Chart (OperatingContractors

Period)

Laborers

Machinist
Electrician
The
operating
period is where the plan starts at normal operation. In
Security
this period, it represents the internal structure of the organization,
managing
Janitors
Guards

personnel, the laborers, the recruitment and training programs, facilities and
professional firms to be hired.
The company will operate three eight-hour shift all year round with the exemption of
national and local holidays, and on events regarding the plants maintenance period and other
events. In this period, the organizational chart is mainly composed of
marketing department, production and quality assurance department,

finance

department

and

human

resource

department.

Under

each

department are personnel that plays a specific function in the company.

2.2.1

Organizational Functions (Operating Period)

Production and Quality Assurance Department
The department responsible for the overall production process. The production
manager and operations manager shall direct the respective supervisors for the
necessary dissemination of information regarding the production parameters and
personnels performance. Every aspect around the production area is controlled by
this department.

Marketing Department
The department responsible for the products to be distributed to the market,
training of salesmen, supervising and direct sales activities in the field. Salesmen
are responsible for persuading the consumer to purchase the proposed product.
They are the one responsible for the complaints and connections that the
customers wishes to have with the organization.

Human Resource Department

The department responsible for the recruitment, training and development,
payrolls, personnels safety, benefits and attendance log sheets.
They also advertise job postings, source candidates, screen applicants, conduct
preliminary interviews and coordinate hiring efforts with managers responsible
for making the final selection of candidates. The HR also supports workplace
safety training and maintain federally mandated logs for workplace injury and
fatality reporting.
On the compensation side, the HR functions include setting compensation
structures and evaluating competitive pay practices. Compliance with labor and
employment laws is a critical HR function. HR staffs are aware of federal and

state employment laws such as Title VII of the Civil Rights Act, the Fair Labor
Standards Act, the National Labor Relations Act and many other rules and
regulations.

Administrative/ Finance Department

The finance department are responsible of organizing the financial statements
and accounting affairs including the preparation and presentation of appropriate
accounts and the provision of financial information for the workers. This functions
particularly for the processes and systems that ensure the use of financial
planning, budgeting and accounting practices.

2.2.3

Type of Business Organization

Corporation will be the type of business organization.

The operational structure of the company is mainly consists of shareholders, officers,
directors and employees. Shareholders of a corporation select individuals to serve on the
corporation's board of directors. Shareholders approve the company's by-laws, articles of
incorporation and any mergers with other companies. Directors of the company issues stock to
potential investors and set the company's price per share.
Strategic decisions are made by the company's board of directors, who are responsible for
enforcing the company's rules and regulations. The board of directors selects officers of the
corporation, such as the secretary, treasurer and president. The officers are charged with
overseeing the day-to-day activities of the business.

Cod
e
A
B
C

Department Schedules
Time Period
Department
Shit
Start
End
8:00
Finance
AM
5:00 PM
Marketing and
8:00
Sales
AM
5:00 PM
8:00
Human Resource
AM
5:00 PM
6:00
1st
AM
2:00 PM
10:00
Security
2nd
2:00 PM
PM
10:00
3rd
PM
6:00 AM
6:00
1st
AM
2:00 PM
10:00
Utility Service
2nd
2:00 PM
PM
10:00
3rd
PM
6:00 AM
6:00
1st
AM
2:00 PM
10:00
Operations
2nd
2:00 PM
PM
10:00
3rd
PM
6:00 AM
6:00
1st
AM
2:00 PM
10:00
Production
2nd
2:00 PM
PM
10:00
3rd
PM
6:00 AM

Total
Time
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.
8 hrs.

Fig 2.2.4 Department Schedule for Operating Period

2.3 Production Schedule

A Master Production Schedule (MPS) is the plan that the company has developed for
production, inventory, staffing, etc. It sets the quantity of each end item to be completed in each
week of a short-range planning horizon. A Master Production Schedule is the master of all
schedules. It is a plan for future production of end items.
Production schedule is divided into five major stages. These are the preparation of
feedstock, oil extraction, reaction, methanol extraction and miscellaneous. The production shall
start at exactly 6:00 AM and will continue based on the shifting schedule.
The following table provide the time table for the process schedule

2.4 Security
Attention to security is a natural corollary to the chemical industrys safety culture. By
reducing the risk of a wide range of threats and mitigating the effects of such incidents as
vandalism, sabotage, workplace violence, and even terrorism, security measures can serve the
goals of process safety management, risk management, and responsible care.
Here are some of the primary security measures that will be implemented inside the plant:
1. Plant Security and Insurance
a. Security Personnel
b. CCTV Surveillance
c. Product liability insurance.
d. Property insurance.
e. Workers compensation insurance
2. Network security

a. Network security against hacking of information

b. Controlled interfaces between the working office and plant network
3. System integrity
a. Maintenance and update processes
b. User authentication for plant or machine operators
Security measures shall not only be limited to insurances but to its protection as well as
any form of crime committed against the company can have a very high cost. Valuable stock and
equipment are lost, premises are damaged, and staff morale can be affected. Therefore, it makes
sense to take the right security measures to protect the company.
The companys security measures will depend on the factors of its location, the type of
equipment use, production and trading hours, handling of finance, and the staff employed.

2.5 Policies
A formal declaration of the guiding principles and procedures by which
a company will operate typically established by its board of directors or
a senior management policy committee. Imbedded in corporate policy are
the companys mission statement, objectives and the principles by which
strategic decisions are to be made.
The following are rules and policies the company will have during its
operation period.
General Company Policies
1. All employees must attend to their assigned job all the time and must not enter to any
dangerous or restricted area without asking permission from the supervisor.

2. All employees must strictly observe the working hours, and be responsible enough of
his/her duty without any other unnecessary activities.
3. Individual performance and field expertise will be the basis of promotion and salary
increase in all levels.
4. The company is the responsible of any injuries happen inside the plant during the workers
schedule with insurance in case of death.
5. Any suggestions, comments, and complaints should immediately be reported to their
direct supervisors for any corrections and further development to be implemented to the
management.

2.6 Privileges and Benefits

The privileges and benefits of the employees is outlined from the Labor
Code of the Philippines which is summarized in the 2016 Philippine Benefits
Summary.
Employees are eligible for most benefits program on the first day of
employment.

Holidays: Eleven (11) paid holidays regular holidays and nine (9)
national special holidays and one (1) local special holiday per year as
provided under Proclamation No. 1105 (2016 Declared Holidays)
Vacation: Thirteen (13) vacation days, with additional 1 vacation day
every year starting on 2nd year of service and convertible to cash at the end
of each year. Maximum total vacation leave is 18 days.
Retirement: The plan, which is 100% funded by the company
calculated at one months base salary per year of service based on the
employees latest basic rate upon normal retirement at age 60, death or total
and permanent disability. Early retirement benefit can be available to 10
years of service equal to 50% of normal retirement benefit.
Healthcare: The plan provides a comprehensive health care coverage
for employees and eligible dependents through Medicard accredited
hospitals and doctors nationwide. The company pays 100% of the cost of
employees coverage while contributing 53% of the cost of dependents
coverage. The company also maintains an onsite medical clinic manned by a
company nurse per shift and a group of company doctors who reports to the
clinic six days a week on specified time schedules providing free medical
consultations, emergency medicines, minor and first-aid treatments and
health counseling. As part of preventive health care, free ascorbic acid
vitamins are also provided to employees while on duty and all employees are
required to undergo an annual medical, dental and eye check-up conducted
onsite.

Leaves:

Sick Leave: Twelve (12) days per year for the first two years of
service. With additional 1 sick leave every year starting on 2nd
year of service. Maximum total sick leave is 15 days. All unused

leave days are convertible to cash in December of each year.

Paternity Leave: All legally married male employees are eligible
for 7 working days up to four (4) child birth or miscarriage of
legitimate spouse to be availed within sixty (60) days from

deliver / miscarriage.
Bereavement: Three (3) days in the event of death of an
immediate family member which includes the employees
children, parents, grandparents, brother, sister, spouse, and

parents-in-law.
Solo Parent Leave: Seven (7) working days parental leave for

solo parents certified by the DSWD

Calamity Leave: Two (2) days leave for employees who were
affected by flood, fire and typhoon (must be supported by a

Government proclamation)
Magna Carta for Women: Sixty (60) calendar days leave. It is
given to all female employees who underwent surgery caused
by gynecological disorders and who have rendered at least six
(6) months continuous aggregate employment service for the
last twelve (12) months prior to surgery.

DISABILITY/LIFE INSURANCE: Employee life insurance is 100% funded by

the Company, provides insurance benefits to the employees designated

beneficiaries in the event of disability, terminal/critical illness and death due

to illness or accident. The amount of benefits is specified below:

Life Insurance Benefit Limit - 26 x monthly base salary base on

the employees latest basic rate.

Accident, Death and Disability Benefit Limit - 13 x monthly base

salary based on the employees latest basic rate.

Total Permanent Disability Benefit Limit - 26 x monthly base

salary based on the employees latest basic rate.

Terminal Illness Benefit Limit 50% of Life, maximum of Php

3.5M
Critical Illness Benefit 60% of Life, maximum of Php 1M

OTHER BENEFITS:
13th month: The Company grants a 13th month pay equivalent to
one (1) months pay to all eligible associates every November of each year.
Associates with at least one (1) year of service as of November 20th shall
receive a full bonus equivalent to one (1) months basic monthly salary while
those less than one (1) year of service shall receive a pro-rated bonus
provided they have worked for 1 month.
Mid-year Bonus: The company grants bonus equivalent to a half
month pay. All probationary and regular employees are eligible to this bonus.
Rice Allowance: The Company shall provide rice subsidy to all eligible
associates in cash which shall be incorporated in the payroll, tax-free, every
month.
Meal Subsidy: The Company provides its associates with a meal
subsidy to partially cover for meals every day that the associate reports for

work and to alleviate his daily expenses. An employee must have rendered
the minimum number of hours per day to get a full or half-meal credit.
Tuition Fee Subsidy: All employees are eligible upon hire. Amount of
subsidy: P 2,500 given in April of each year.
Employees

Educational

Assistance

Program:

Provides

reimbursement of duly approved educational expenses upon satisfactory

completion of the course and provided that the degree or course taken is
relevant to the employees present or prospective job assignment. Maximum
reimbursement per term is P 10,000. All regular employees are eligible to
this benefit.
Kapwa Tulong Program: Cash assistance provided to an employee
(KTC members only) in cases of death of immediate dependents or calamity.
The company matches the contribution of employees thru the Kapwa Tulong
Program which is administered through salary deduction.
Attendance Bonus: A bonus equivalent to one day pay given to all
Regular and Probationary Employees who are Job Grade 8 & below, and all
Technicians. Associates must have perfect attendance in one (1) month with
no tardiness undertime or unexcused absence.
Prolong Sickness (PSL) Benefits: It is given to all employees with at
least six months of service. Purpose of this benefit is to provide regular
employees with salary protection during recuperation period from certain
medical conditions. The condition may include but not limited to;

Chronic ailments requiring at least on month of treatment

whether through hospitalization or outpatient basis.

Major Operative procedures such as, but not limited to,
general and specialized surgeries, and major gynecological

operation.
Obstetrical surgical procedures such as caesarian section

are not included under this benefit.

Post-injury conditions which warrant long recuperation
period.

Loyalty Token Employees are recognized for their loyal and

dedicated service to the company for every five years of continuous service
by the way of gift check or token, plus plaque of appreciation during the
service award ceremony.