the assembly line setup was in proper which caused the issue of delay in work and creating problems for the firm. By group format of assembly process it was proved that the assembly process can be done soon The group process includes two members in each group working on a same machine to assemble it and had completed the assembling of two machine within two days Large surface area of hopper created a problem in the quality of the product this was due to irregular portion of raw material entering into the machine and getting converting into pallets with inferior quality The design of new hopper with rectangular shape and less area of passage proved that slow moving of raw material into the machine can make the machining process very good with superior product quality Engineering over the last decades there have been two major factors that have been driving the growth of the pellet fuel market. The first is the consistent rise in cost of fossil fuel and price instability, and the second is the increased attention given to the effect of using fossil fuels such as oil and gas on the environment. Other factors that support the case for pellet is that they are a fuel that can be produced locally form local wood and biomass materials. Local pellet production and distribution can produce an affordable fuel, while creating local jobs and keeping the carbon footprint to a minimum. Biomass pellets are the most common type of pellet fuel. It includes wooden pellets which are generally made from compacted sawdust and related industrial wastes from milling of lumber, manufacture of wood products and furniture and construction.