the 11th global conference on environmental taxation
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GCET 2010. The 11th Global Conference on Environmental Taxation. Using Environmental Taxation Strategies to Support Climate Change Resilience. 3-5 November 2010, Bangkok THAILAND. The 11 th Global Conference on Environmental Taxation 3-5 November 2010, Bangkok THAILAND. - PowerPoint PPT PresentationTRANSCRIPT
Using Environmental Taxation Using Environmental Taxation Strategies to Support Climate Strategies to Support Climate Change ResilienceChange Resilience
The 11th Global The 11th Global Conference on Conference on Environmental Environmental
TaxationTaxation
3-5 November 2010, Bangkok THAILAND3-5 November 2010, Bangkok THAILAND
The Economy Procurement The Economy Procurement Management ModelManagement Model
The Study in BIOMASS FUEL HUSK of BIO-ENERGYThe Study in BIOMASS FUEL HUSK of BIO-ENERGY
Dr.Siriraks Khawchaimaha BBA, HA, MBA, DBA, CPA, ICSMFaculty of Management Science
Khon Kaen University, Thailand
The 11The 11thth Global Conference on Environmental Global Conference on Environmental TaxationTaxation
3-5 November 2010, Bangkok THAILAND3-5 November 2010, Bangkok THAILAND
BackgroundBackground
Bioenergy comes from any fuel that derive from biomass
Biofuel does not result in a net increase of CO2 in the earth’s atmosphere
Agricultural products grown as a source of :- bioenergy ; corn, soybeans, flaxseed, rapeseed biodegradable waste and food leftovers from
industry, agricultural, forestry, and households can also be used to produce bioenergy
The Plants Cultures: Sugar Cane
Growing the CaneG
ExtractionE
HarvestingH
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
G
H
E
Seasonal and Limited Resources
4 months – December - March
2 ½ months
8 months Squeeze the sweet juice, and the cane fibre ‘BAGASSE’ is carried to Boiler
How Cane Sugar is MadeThe Energy Aspects
PowerFibers left over from crushing the sugar cane, it is called "bagasse" in the industry. The factory needs electricity and steam to run, both of which are generated using this fiber. The bagasse is burnt in large furnaces where a lot of heat is given out which can be used in turn to boil water and make high pressure steam. The steam is then used to drive a turbine in order to make electricity and create low pressure steam for the sugar making process. This is the same process that makes most of our electricity but there are several important differences
Bio-ENERGY Company Ltd
Company Background Khon Kaen, Northeast of Thailand
Company Products Bioenergy – from baggase
HEAT – to boil water in Cane Sugar process High Pressure Steam – drive a turbine :-
Electricity – for :- internal Sugar Product Company, EXCESS capacity – 21 years sales contract to EGAT
Low pressure steam – for sugar making process
THAILAND 76 provinces
ISAAN 19 provinces
South East Asia
Khon Kaen20th – Administrative center
Khon Kaen UOM Rank
Area 10,886 sq.km
15
Population 1,762,242 4
Density 159.2/sq.km 19
Challenges : Procurement Management Department
Seek and Source the Quality + Sufficient : waste bagasse , husks from rice mills
Logistics and Physical Distribution Inventory Control and Management Least Cost
Bagasse, HusksQuality, Sufficient,
Cost, Timely
Heat Sugar Product Co.,
High Pressure Steam 21 years sales EGATelectricity
Low pressure steam
electricity
Boil water
Issues
Seasonal Limited Resources Alternate Raw Materials : Husks, Bagasse,
Corns Quality Control & Assurance
Input – Husks, Bagasse, CornsPhysical Distribution – routes, on time, costs,
experiencesProcesses – continuouslyOutput – internal use, and sales to EGAT
The Action ResearchTheoretical Framework
ECONOMICValues
ProcurementManagement
Model/Process
Supply ChainManagement
Vendor SelectionProcesses
PurchasingManagement
Quality Control Management
Logistic ManagementPhysical Distribution
InventoryManagement
STREAMLINING
Workflowprocesses
SourcingAlternate
Substitution
DistancesExperiences
Quality, Safety
TimelyQuality
Adequacy
QuantityQuality
Qualified Process
Inventory DaysLeast Cost Method
ABC AnalysisOperations and
Scheduling
The Procurement Management Model
Plan Suppliers
AlternativesInternal
Sales EGAT
SourcingBio-EnergyProduction
PhysicalDistribution QC
ContinuityExperiences
ScrapHusks
QualifiedHusksQA
•Source•Selection•Storage•Quality
•Price & QA•Distance•Capacity•Production Volume•Continuously
•Delivery Cost•Quality Control•Cooperation•Distance: Company vs. Mill•Nb of trucks
Seasonal
Credit or Return
Y
N
SourcingSelectionStorageQuality Control
According
to Plan
MonitoringImprovement
Act & ReactEvaluationDevelopmentPlanning guidelinesAchievement
The Quality Management Cycle
DoDo
Act &AssessAct &
Assess
PlanPlan
CheckCheck
The Procurement CostComparison: Bagasse and
HusksDescription
Heat Cost Transport Carrying Admin Cost
Fuel
Kcal/kg Bht/Ton Bht/Ton Bht/Ton Bht/Ton Bht/KW
Bagasse
-subsidiaries
1,716 250 141 25 1 0.76
Mae-sod 1,716 250 1,000 25 1 2.33
Other 1,716 400 270 25 1 1.27
Husks<170kms
3,027 600 225 25 1 0.92
> 170 kms 3,027 600 600 25 1 1.30
Discussion and Results1. Input
1. Cane sugar growing and harvesting period in northeast is Dec-Mar (4 months)
2. Husks growing and harvesting period in northeast is 8 months1. Challenges – various rice mills, quantities, transport, cost
effective, maintaining husks at maximum heat generated2. Inventory Management – destination and sourcing, vendor
selection, ordering point, delivery time, minimum quantities, qulity of bio-resources, storage conditions, less waste or damge bagasse or husks or corns
Results1. The qualified rice mills supplier's list – 7 Udornthani, 2
Chaiyaphum, 1 Loei, 1 Nongkai2. Transportation and Communication – mobile phone, fax, order
confirmation notification3. Payment – bank transfer , Official receipt
Discussion and Results
2. Processes :1. On season2. Off season3. Customer’s demand4. Transport cost method5. Continuous improvement
3. Output – the assurances of quality output on electricity and low pressure steam, adequate, and importantly meet customer’s contract over the next 21 years from 2006 - 2027
Conclusion & Recommendation
1. Bagasse – sugar cane factory within 200 KMs procurement cost of bagasse < husks
2. Approved Capital Budget – 2.6 million baht to construct the storage area for bagasse and husks
3. Awarded – Best Practice and Management Excellent 4. The Action Study results and recommendations
1. Increase purchasing points or kiosks2. Forward Contract on Husks3. Market survey on Customer’s Demand for market expansion4. Supplier Relationship Management (SRM)5. Study on other agricultural biomass products e.g. corns, corn
trees, sugarcane leafs, and other sugarcane parts
Executive Summary
This action research demonstrates the reuses of the unused or by products to generate not only business units : income, profit, market share
Gain Corporate Social Responsibility Gain Branding and Corporate
Reputation
The 11The 11thth Global Conference on Environmental Global Conference on Environmental TaxationTaxation
3-5 November 2010, Bangkok THAILAND3-5 November 2010, Bangkok THAILAND
