TABLE OF CONTENTS
INTRODUCTION 3
MAIN BODY 3
1. INTRODUCTORY FEATURES 3
1.1. General Information about Elit ”ikolata ve ”ekerleme A.”. 3
1.2 Main Shareholders and Their Shares. 4
1.3. Sector and Typical Products Firm Manufactures and Its Market Shares 5
1.4. Customers and Stakeholders of the Firm 5
1.5. Functions of Industrial Engineers in the Firm 6
2. ANALYSIS OF THE MACRO ASPECTS 7
2.1. Overall View of Production System 7
2.2. Vision and Mission of the Company 9
2.3. Current Location of the Firm 10
2.4. Investment Evaluation of the Company 11
3. AN OVERVIEW OF THE PRODUCTION SYSTEM 12
3.1. Material Flow of a Particular Product 12
3.2. Determination of Rated Capacity 15
3.3. Operation Types 15
3.4. The Block Plan of the Organization 16
3.5. Layout Type of the Company 17
3.6. Types of Layout for the Production Department 17
3.7. Unit manufacturing Cost Calculation 19
3.8. Ratio Analysis 19
4. PRODUCTION PLANNING AND CONTROL SYSTEM 23
4.1. Forecasting Activities 23
4.2. Scarce Resource 23
4.5. Reducing Undesired "slack" 24
5. QUALITY PLANNING AND CONTROL SYSTEM 25
5.1. Quality Control Activities 25
6. MANAGEMENT INFORMATION SYSTEM 28
6.1. Decision Makers and Activities in Each Level 28
6.3. Computer Systems of the Company 29
7. WORK STUDY 30
7.1 Work Measurement and Method Study 30
INDUSTRIAL ENGINEERING PROBLEM 34
Identification and Definition of the Problem 34
Formulation of the Problem 37
CONCLUSION 38
APPENDIX 39
Introduction
I did IE400 internship at Elit ”ikolata and ”ekerleme Sanayi AS between 22th of January and 16th of February at Production Planning and Control Department. I had the chance to experience production systems of Elit ”ikolata and ”ekerleme Sanayi AS and the methods of them used for production. I spent more time in the production department than the others. During my internship, the director of Inspector Quality Assurance Department, Ufuk Y”r”r, mentors me. The first few days informed me about general operation and then we looked at a few projects about production systems with him. Thanks to these projects, I have had the opportunity to learn a lot about Elit ”ikolata and ”ekerleme Sanayi AS. Production systems were the most important part.
I will share with you the details of the company's characteristics and the operational operation of the company. I will also explain to you the analysis and production systems of the Elite Chocolate at macro size. After that, I will continue with the description of production planning and production control systems. Finally, the report will be finished with the description of the quality and production management department, the information systems in management, the description of the project carried out in the company and the result.
MAIN BODY
INTRODUCTORY FEATURES
General Information about Elit ”ikolata ve ”ekerleme A.”.
Elit ”ikolata ve ”ekerleme A.”. was founded in Istanbul in 1924 under the name of " Elite ”ikolata, Meyveli ”eker ve Karamela Fabrikas”".
In the first year of manufacturing in the manufacturing group, in time, retail products added to the portfolio. Today, Elit ”ikolata produces many types of chocolate such as chocolate coated tablet, mango chocolate, specialty chocolate, tablet chocolate and so on for many countries of the world.
Elit Cikolata has two factories. The first is Esenyurt. This factory has production area of 20000 m” and has a production capacity of 10000 tons of chocolate. The second factory is located in Kasimpasa. It has a production area of 4000 m” and a production capacity of 8000 tons of chocolate.
The communication information is as follows:
Zafer Mah., 140. Sokak, No :21
Esenyurt / ”STANBUL
T: +90-212-444-09-24
F: +90-212-596-08-08
E: info@elitcikolata.com.tr
Pir H”samettin Sok., No:29,
Kas”mpa”a, Beyo”lu/”stanbul
Telefon: +90-212-238-11-71
Web: www.elit-chocolate.com
1.2. Main Shareholders and Their Shares
63% of the Elit Company belongs to the Elit family and 37% belongs to the foreign investors. Investors' investments were realized in 2011.
1.3. Sector and Typical Products Firm Manufactures and Its Market Shares
Elit works in the chocolate industry. It produces all of its products in its own factory. It is Turkey's oldest chocolate brand and is the leader of Turkey's chocolate industries. As Patisserie, HORECA and food producers, they make their own products. Each one is managed by a different sales team. Unlike chocolate, they also provides gift box, dragee-covered sugarcane and pralines products for their customers.
Elit Cikolata is the biggest company in domestic market with 36% in cholate sector. Also, they export 31% of their products to 30 different countries. Russia, America, middle-East and Far-East countries are their most important export areas.
1.4. Customers and Stakeholders of the Firm
Elit ”ikolata produces all kinds of chocolate. For this reason, all wholesalers, pastry shops and shops are regarded as customers of Elit ”ikolata. The products are divided into industrial and retail products. 35% and 65% are the percentages of these two products in production, respectively.
In the current situation, company operations are divided under the four channels. These are:
Industrial Channel:
Elit is the leading supplier in industrial chocolate market, thanks to the strong
reputation built for high quality products over the years.
A / B class patisserie, hotels, restaurants, cafes and other producers also have a wide customer base of Elit Chocolate.
Cocoa powder, pralines, sugar chocolate and bitter chocolate couvertures are the most important products in this channel.
Retail Channel:
Elite ”ikolata is one of Turkey's most prominent 10 chocolate and sugar confectionery company.
Elit ”ikolata, which is a company with reputation and reputation thanks to its iconic brands and niche products, has loyal traditional and modern retail customers.
Elite sells national retailers as well as stores. Turkey provides products to a total of 14 stores in the chain. Examples are BIM, A101, Metro and Tesco.
Export Channel:
The company produces products in foreign chain stores such as national chain stores. Thanks to these stores Elit ”ikolata products can be consumed in more than 57 countries. Wallmart is one of the biggest examples. Among the Turkish chocolate producers, only Elit Chocolate has the right to supply chocolate to Wallmart.
Elite's gift boxes, which are another product variety, are supplied to customers in the A / B segment. These products are generally identified as seasonal products because they are preferred on special occasions such as holidays or celebrations.
Elit shows growth stability with export sales growing since 2010. In this regard, export sales in the year 2014 reached TL 47.3 Mn. This can be explained as CAGR growth of 38.4% since 2011. You can see these numerical data in the graphs in
Figure-1.4.1.
Figure 1.4.1: Export Sales and Export Breakdown by Region
Corporate Channel:
In the corporate sales channels through awareness and brand image in Elite special chocolate gift boxes are also among the top 5 companies in Turkey.
The company has a total of more than 250 corporate customers.
1.5. Functions of Industrial Engineers in the Firm
Industrial Engineers are present in every field of production and every field is needed for these engineers. For this reason, Elit ”ikolata also works in 5 different departments in total 8 industrial engineers. These departments are listed below.
Quality Assurance Department
Purchase Department
Logistic Department
Production Department
Business Development Department
ANALYSIS OF THE MACRO ASPECTS
Overall View of Production System
Figure 2.1.1: Overall view of the production system as a black box.
Raw product components for producing Elit Chocolate products are cocoa butter, hazelnut powder, granulated sugar, milk fat, pistachio, hazelnut, lecithin, nonfat milk powder, 32,5% nonfat milk powder, cocoa paste, cocoa powder, hazelnut flavor, almond, ethyl vanillin, whey powder, glucose syrup, enzyme, butter cream frosting, lactose, milk cream flavor, Na(CO3)2, fruit-flavor, coffee bean and dextrose.
In the company technology is very important to follow the product quality and production. The machines are specially designed for the production of chocolates used in the production phase of the products. In addition, machines for storage, cutting, quality control and logistics operations are used. An example is the forklift, which is used for storing and transporting produce from raw material. In addition, with the help of SAP, storage control, production planning and accounting are controlled.
Elit Chocolate manufactures for domestic and international markets. The fact that both factories are located in Istanbul provides the opportunity to be sent directly to domestic and foreign countries. In addition, all of the raw materials are supplied from local suppliers. In this way, the company contributes to the growth of Turkey's economy.
Elit ”ikolata support its quality standards with cetificates and some of them are shown in Figure 2.1.2.
Figure 2.1.2: Quality Certificates
2.2. Vision and Mission of the Company
As the company has said on its website www.elitcikolata.com.tr, the vision of the company is as ‘to become the leading chocolate and confectionery market in Turkey, to be the first brand that comes to mind when you think of the Turkish chocolate in the world.’.
The mission of Elit Chocolate is explained in detail on website www.elitcikolata.com.tr as given below:
‘From 1924, we are bringing our quality tradition and customer-focused approach to the future with our first day's excitement and bringing pleasant moments to our consumers.’.
Current Location of the Firm
Elit ”ikolata has two factories. The first factory is is located in Esenyurt. The cost of land has been tried to be reduced in choosing the location of this plant. The fact that the land costs are very high in the center of Istanbul is the main reason for this decision. The second factory is in Kas”mpa”a. The advantage of this plant is that it is easy to find raw materials and find cheap workers. The most important raw material of chocolate is cocoa beans. Being the commercial center of Istanbul, cocoa beans are easy to obtain. In addition, the determination of salaries by the minimum wage makes it easier to find cheap workers. Another important point is that finished products can be sent cheaply and easily to all other cities from Istanbul by sea, land, train and air.
Figure 2.3.1: Location of The Firm
Investment Evaluation of the Company
Elit ”ikolata is currently using two chocolate ball mill refiner and the capacity of these two machines can meet the demand. However, as I mentioned before, the sales figures of the company are increasing every year. Therefore, in the future, the capacity of the machines will be insufficient. In order to avoid this problem in the future, getting new machines is being discussed.
Elit Chocolate makes all monetary decisions in dollar currency. Therefore, inflation is not used in calculations. In addition, data for the past five years are used for capacity planning. As a result, the company considers many issues together while making investment decisions. First of all, the assurance of Elite's suppliers is very important for these decisions. Because mutual trust is a must.
Also, the supplier's approach to possible plan changes is one of the issues that is important to the Elit.
Secondly, when investing in Elite, it gives importance to maintenance costs and efficiency coefficient of investment as well as electricity, water, labor and operation costs.
In all these circumstances, they can be decided whether new investments should be made or not without considering the initial investment.
I will give you an example with the TL currency type. Because the Elit ”ikolata decisions are not influenced by inflation when dolar currency is used. It will be an example of how the decision-making process is decided.
In real life, the budget and bills for this investment have not been shared with me. In addition, old investment documents are kept confidential. For this reason, calculations were made by assumptions.
Elit ”ikolata has two options to buy new chocolate ball mill refiners. The options details are as follow:
Option-1:
Capital Investment Cost = 80.000 TL
Maintenance and Cleaning Cost = 5.000 TL
No deposit return and salvage value
10 years of life time
2) Option-2:
Capital Investment Cost = 100.000 TL
Maintenance and Cleaning Cost = 4.000 TL
No deposit return and salvage value
10 years of life time
** Interest rate is assumed and used as 10% per year. Present values are calculated as following for both scenarios:
For Option-1:
PW= 80.000 + 5.000(P/A, 10%, 10) = 110.722,8 TL.
For Option-2:
PW= 100.000 + 4.000(P/A, 10%, 10) = 124.578,3 TL.
When the calculations of the two options are checked, the present value of the first option is lower than the other. As a result, Elit ”ikolata will choose the first option.
AN OVERVIEW OF THE PRODUCTION SYSTEM
Material Flow of a Particular Product
In order to understand the functioning of a factory, it is first necessary to examine the entire production. The material flow in the production is one of the best ways of understanding the operation. Elit Chocolate's product range is quite extensive and rich. For this reason, I have schematized the metarial flow of chocolate and chocolate coated dragee production lines in order to understand how the factory is organized and produced. You can find this schematic description in Figure 3.1.1 and Figure 3.1.2.
Figure 3.1.1: Schematic Presantation of Chocolate Coated Dragee Production Line
Figure 3.1.2: Schematic Presentation of Chocolate Production Line
3.2. Determination of Rated Capacity
Elit Chocolate, which is in a sector where competition is high, is aware of the importance of capacity decisions. Any error in capacity control will affect the company as a cost. In order to avoid these financial losses, Elit takes capacity control decisions, seriouslly. They are working to improve stations that create bottlenecks between stations to achieve maximum profits. These studies were carried out in each department and tried to determine the optimal capacity. Of course, the improvement of bottleneck stations has become a priority.
The average daily production of the company is 6000 kg per day. Annual designed capacity:
8 hours/days * 260 days/year* 6000 kg/ hours = 12,480,000 kg/year
Utilization rate is a rate determined by the board of directors of the company. It is updated every year depending on the current situation. Also, the ratio can be changed depending on daily situation. This determined ratio is applied in each operation of the plant. The usage rate determined for this year is 98%.
In terms of efficiency, the rate of the firm has been set at 93 per cent by the company's board of directors, depending on the experience of the last few years and the company's objectives.
The Rated Capacity = (12.480.000kg/year) (%98) (%93) = 11.374.272 kg/year
3.3. Operation Types
When there is no change in the production, a system of self-repetition is obtained in which the order of use of the substances is constant. A subsequent process occurs in the same order as each other. The factories that use this system which is formed by keeping the materials used constant can be described as a flow shop. Elit ”ikolata can produce all kinds of products in the same line. Firstly, raw material is stored and packaged for training after it is prepared for the production of chocolate. After stirring the ingredients in the mixer, the milking process is applied. The products are packed to send to the customers after the transactions are completed. Finally, they are moved to the warehouse area. This flow shows that Elit ”ikolata uses flow shop production.
In addition, there are many different product groups produced, but there are many common processes among the processes in which all of the products are seen. The products are different towards the end of production. For this reason, it can be said that independent and very different products are not produced for the production system. As a result, it would not be wrong to think of production as a batch shop production of production.
Make To Stock (MTS), Make To Order (MTO) and Assemble To Order (ATO). Elit ”ikolata is produced and stocked. Therefore, the production system of Elit ”ikolata is MTS.
3.4. The Block Plan of the Organization
Figure 3.4.1.
The block diagram of the company is shown in Figure 3.4.1. Such raw material is carried to the warehouse area by the personnel after the dismantling. Inbound order and production planina gore raw materials are processed. mixed and packaged. Later, the north warehouse is stored for shipment to the field.
3.5. Layout of Facilities at Company
Process layout, cellular layout, product layout and fixed position layout, variety of ordering system. Elit Chocolate production flow is realized with continuous flow. Due to this reason, material settlement was made in the flow shop. It is arranged that all equipment will work with where and what materials. The route that each item will follow is definite and specific. This route is always the same. Product layout is a regular that allows production to be done on different lines for different products on the same line. As a result, the firm uses product layout. Yoy can see the layout in Figure 3.5.1.
Figure 3.5.1: Layout of Facilities at Plant
3.6. Types of Layout for the Production Department
The production department is the most suitable department to examine the functioning organization. This is why this section of the investigation was done. In this area, the raw material is sent to the tanks first. Raw materials pass through the transaction. Most importantly, as mentioned earlier, these processes go through the same process sequence for each product.
Firstly, the components used in making chocolate are automatically weighed with precision weighing and prepared for production. Later, the batches of raw materials are stored in the warehouse for use in production. These batches are prepared according to the orders received. After this application, the foreign substance is extracted by the sorting process. The extracted parts are shredded in the shredder machine and then sent to the mixer.
The mixture with the mixer is stirred for about 5 minutes. It is then made liquid by adding oil and water. In the later stage, different flavors are obtained by adding syrup according to the flavor of the chocolate. For example, strawberry syrup is added to produce strawberry chocolate. After the sweetener process, the product is converted to powder, liquid or bar depending on the kind of product. If powder is desired, it is frozen and recycled. If liquid is desired, it is sent to the filling line to be filled in glass or plastic bottles. Finally, if it is desired to produce as a bar, it is sent to the mold line and passed through the cooler. Once all the different product forms have been processed, they are stored in the storage area as finished product.
Before the stored item is shipped with trucks, it is divided into parties according to the general request of the customers. Thus, distribution is much more comfortable. If there is no demand from the customers, the products are kept in depot until demand is reached. Figure 3.6.1 shows the functioning unit in this section.
Figure 3.6.1: Functioning unit in production department
3.7. Unit Manufacturing Cost Calculation
Elit Chocolate calculates unit costs in TL / kg. The main reason for this is the production and pricing of chocolates and candies in kilograms. Unit costs are calculated by the following equation.
Every cost is calculated on a monthly basis. Therefore, the end of the month is expected for unit cost calculation. Total cost, raw material costs, packaging material costs (packing bags, etc.) and cost of benefits, energy costs, etc. as production costs. Finally, the total cost calculated for that month is divided by the total kg produced in that month. As a result, the unit cost of the desired product is calculated. These calculations can be seen in Table 3.7.1 below.
TL KG TL/KG
Raw Material 1.497.254,22 2.415.955 0,6197
Production Expense 54.713,93 0,0226
Packing Material 1.116,35 0,0005
Production Loss/Gain 11.455
Months Prod. Gross 1.553.084,50 2.415.955 0,6428
Months Production Net Amount 1.553.084,50 2.404.500 0,6459
Table 3.7.1. Unit Manufacturing Cost for Layer Feed
3.8. Ratio Analysis
I demanded the company's financial statements and the balance sheets of the last two years. However, I received the 2015 and 2016 documents because the 2017 document was recent information and confidential documents. I have done ratio analysis according to these documents. You can find these documents in appendix.
**(Definitions of ratios have been taken from the book of McGraw Hill as called Financial Accounting.)
Liquidity Ratios
Current Ratio : The current ratio measures a company's ability to pay short-term and long-term obligations.
Current Ratio for 2016 = 142012305.35 / 7664397.90 = 18.52
Current Ratio for 2015 = 124100832.31 / 10898447.94 = 11.39
Quick Ratio : The quick ratio is the ratio for a company's short-term liquidity.
Quick Ratio for 2016 = 8.84
Quick Ratio for 2015 = 4.95
Accounts Receivable Turnover : This gives the number of times accounts receivable are collected during the year.
Accounts receivable turnover for 2016 = 136401412.81 / 28411660.16 = 4.8
Accounts receivable turnover for 2015 = 4.66
This increasing means that the company is more capable of collecting accounts receivable.
Inventory Turnover : Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over a period
Inventory Turnover for 2016 = 1.34
Inventory Turnover for 2015 = 1.18
This increase because of fewer goods.
Profitability Ratios
Profit margin: Profit margin indicates the profitability of firm.
Profit margin for 2016 = 1.1
Profit margin for 2015 = 1.02
The firm is more profitable in 2016 than 2017.
Asset turnover: Asset turnover measures the efficiency of a company use of its assets.
Asset turnover for 2016 = 0.94
Asset turnover for 2015 = 1.004
Solvency Ratios
Dept to Equity Ratio : It is a method of measuring a company's ability to borrow and pay back money. As debt to equity ratio increases, the investment to be made by the company gets riskier.
Debt to equity ratio for 2016 = 8.35
Debt to equity ratio for 2015 = 5.34
PRODUCTION PLANNING AND CONTROL SYSTEM
4.1. Forecasting Activities
Products whose demand is changing are called dynamic demand products. For these types of products, forecasting is very important for planning periods. Although most of the annual requests are known by Elit Chocolate, the order quantities vary due to economic changes, seasonal differences and other factors. For this reason, changes in Elite sales quantities are observed and sales are dynamic. To comply with the changes, the company regularly carries out forecasting calculations.
Short-term and long-term planning are implemented regularly in the company. Short-term planning is implemented to meet the needs of Elit ”ikolata's factories and emergency facilities. Such schemes are rarely modified because they are often strict practices.
The annual plans implemented throughout the year are called long-term planning. Different from short-term planning, long-term planning can be changed and applied easily in response to demand changes or market changes. It is taken under strategic decisions within the annual planning.
These two types of forecasting have a common purpose, allowing the company to adapt to the changes to be experienced and increase the sales and profit amounts. These plans give the company an idea of the company's estimated activities, budgeting, production planning and financial situation.
4.2. Scarce Resource
Scarce resource data is crucial to understanding the amount of capacity a company can realize. In summary, the company helps determine the maximum amount of production it can reach. The scarce source can be raw material or money. Sometimes this can be defined as machine or work force.
Throughout my internship, I have observed that lit chocolate does not have any problems with the raw material. In the absence of this problem, the most important role is the purchasing department. Thus, the amount of production is always higher than demand. As a result, money or raw material is not a scarce source of company. The company is a scarce source of machinery. One of the machines is the bottleneck of the factory due to its capacity, according to the analysis that Elit ”ikolata made to the consultant company. Therefore, the capacity of the plant is calculated according to the capacity of this machine. These calculations will show you the capacity calculations for making liquid chocolate.
Hourly Capacity of Machine-A = (60 Minutes)/(Mixing Time)*Productivity*700kg
= 60/5*0,8*0,7 tons=6.72 tons/hour
Monthly Capacity = Hourly Capacity * Shift Hours * Working Days in a Month
= 15*8*25 = 3000 tons/month.
With such calculations, the company can observe its own production capacity. Furthermore, it is very important that the bottleneck can be determined. At this point, the company can identify the unit that needs improvement. If the incoming demand is more than the bottleneck unit, capacity increase studies should be carried out. Possible solutions increase WIP Stock Level. Possible solutions: continuous operation of the machine or optimization of the machine operators and the material handling system. It is also a solution to increase the number of shifts for this machine.
As a result of my observations, Elit Chocolate successfully manages scarce resources. Bottleneck analysis allows the firm to identify the slowest working unit and conduct improvement studies.
4.3. Reducing Undesired "Slack"
Elit Chocolate aims to produce the most efficient and high quality products by reducing the amount of waste products. It provides easier observation of the problems that can be experienced after reducing the amount of wasted product and it can be easily solved. Thanks to improvements, these amounts are being reduced. These improvements are called Kaizen. Waste is nothing that adds value. unnecessary stock, idle time, excess production, unnecessary movements, transportation and unnecessary maintenance, defective products can be shown as waste.
These listed wastes cost money, time, energy or labor. Elite Chocolate also works in Kaizen Team to avoid these waste. Kaizen workshops are being held to get the six possible zeros in each order:
‘ Zero Stock
‘ Zero Mistake
‘ Zero Contradiction
‘ Zero idle time in production
‘ Zero order-to-delivery time to customers
‘ Zero Documents (zero bureaucracy and zero unnecessary communication)
It is impossible to reach the sixth rank for Elit Chocolate. The aim of the raw material company is to achieve this value. Despite the fact that this process has just started to be implemented, the future goal of the company is to achieve this goal.
QUALITY PLANNING AND CONTROL SYSTEM
5.1. Quality Control Activities
ISO + HACCP and British Retailers Community Certificate are the quality standards of Elit Chocolate and Confectionery Industry. In addition, factories have TSE certificates. The factories of the company are regularly inspected by the Ministry of Agriculture and the Ministry of Health. In addition, a cost examination is carried out every four years and the examination takes approximately two months. This audit is performed by the audit team. In addition, TPM (Total Productivity Maintenance) and TQM (Total Quality Management) systems are implemented in the factory.
Amalysis periods are determined based on the risk levels of the products. Very often analysis is not performed in Elit Chocolate. This is because the risk level of chocolate and sugar is low. Microbiological and sensory analyzes are preferred rather than chemical analyzes. Release parameters of finished products are used as net weight and microbiological analysis is applied to finished products instead of chemical analysis.
All raw materials and intermediates are sensory analyzed. This type of analysis is called physical analysis and is performed by the Rabinson Test method.
Sensory analysis in Elite Chocolate is also preferred over other methods. The smell, taste and texture of the finished products are periodically checked by experts during the day. Sensory analysis is included in 4 main parameters. The parameters are good, inside, outside, outside. In order for an employee to become an expert, these four parameters must be mastered and pass the exam. The most important stage of the examination is to understand the taste differences between the three different products.
Enterobacter, protein, oil (butchi method), PH, particle size (sempatec), IBM and water analysis are analyzes performed in the plant. These analyzes are referred to as chemical analyzes and these analyzes are repeated twice a year. Chemical tests are carried out by examining the samples taken in the laboratory. The test results are sent to the center. If the z-score is less than 2.65, the product passes the test successfully. If the test fails, it is reported to center with the correction form. You can see the quality cetificates in Figure 5.1.1.
Figure 5.1.1: Quality Certificates
MANAGEMENT INFORMATION SYSTEM
Decision Makers and Activities in Each Level
Strategic decision, tactical decision and operational decision level are decision levels. Table 6.1.1 shows the organizational chart of Elit Chocolate and Confectionery Industry Inc..
Table 6.1.1. Hierarchy
Strategic level decisions are taken by the General Assembly in Istanbul and include very important strategic decisions. These decisions are long-term and high-budget plans.
Tactical level decisions are a bit more complicated than others. In the first step, all departments, such as finance, engineering and quality, present their budget reports to the surveillance committee. These reports are separated according to the general headings and sent to responsible persons. For example, reports are sent to the human resources manager for staff recruitment or to the financial manager for fund flow analysis. The managers of these departments are appointed.
Operational level decisions can only be taken by senior management. These decisions are examples of decisions taken by the supply-demand department regarding inventory control operations or decisions made by the logistics department regarding transportation. It is also one of the operational level decisions made by the production department on business planning and appointment of workers.
6.2. Computer Systems of the Company
Companies that want to follow their operations more easily and increase their share in the sector must follow technological developments. These technological developments are dominated by computer software. The computer is widely used to store, analyze and share information easily. This kind of technology is removing the problems of companies making mistakes and losing information.
Elit ”ikolata is aware of the importance of computer systems and is involved in operations of such technologies. Computers are used in every activity of the company from the follow up of raw material to the counting of materials in stock. In addition to manufacturing, computers are widely used in management activities of the company. This is exemplified by MS Office Programs.
SAP (Systems, Applications and Products) is another common computer program used within the company. SAP is used for inter-department data exchange, storage and processing of data. In addition, departments can use their own SAP networks to reduce complexity and exchange data within themselves.
SAP software is also used to manage inventory, production, logistics and financial operations. This software has all the information and capacity necessary to carry out daily checks and operations of the company.
WORK STUDY
7.1 Work Measurement and Method Study
An example of the labeling section is the work area where the computer is not used. The personnel in this section are responsible for the labeling of the bags for cargo, and this is a recurring activity. Labeled bags are shipped with relevance to relevant departments. After certificate checking, the appropriate certificate process ends.
After the packaging process is completed, the prepared labels are pasted. Many departments may request the relevant conformity document at the same time. For this reason, the packaging and labeling process can take a lot of time. In order to prevent this, the departments' demands are taken in alphabetical order and 4 labels are prepared for each department to prevent the density to be experienced in the future.
Every Monday is counted as labels. Label counting of each department is done separately. According to the number of tags, the number of packages required is determined.
Two work measurement methods are used to determine the time required for each labeling operation. The methods are stopwatch and predetermined motion time study.
Stopwatch:
The values of basic movements and movements related to normal time values are shown in the following table. The values of these movements and movements are taken from the book of Mikel P. Groover.
Predetermined Motion Time Study:
As with the previous method, the values of the fundamental movements and movements based on the normal time values used for this method are taken from the book of Mikel P. Groover. You can see these movements and values in the table below.
The time study was performed and the labeling of the packets and predetermined motion time study were determined as 19.5 and 7 seconds, respectively. Except for the labeling process, there are other works that exclude existing packages, counting tagged packages, and extracting paper from the folder by translating the page of the sender's eject folders. Therefore, the total required time is increased.
To reduce this total time, calculations and observations were made using different labeling methods. The office staff first wants to stick a piece of bag with only a sender sticker and then stick the labels of the parts according to your needs. The current time study results are as follows.
Other activities and times are as follows:
The average total working time was calculated as 7.125 + 9.75 = 16.875 seconds. In this view, a 2.625 seconds improvement (19.5 ‘ 16.875 = 2.625 sec.) was made in the total working time. As this comparison shows us: with the storage of section tags, after you have received your cargo bag, you can stick to the sender label and then reduce the time it takes to label each label.
INDUSTRIAL ENGINEERING PROBLEM
Identification and Definition of the Problem
Elit Chocolate has many problems as it is in every company. As a project subject, I examined the problem of paper waste in the purchasing department, which is important for nature and easier to work with. Although this problem seems unimportant, too much use of mail in the procurement department increases paper waste too much. Every employee in the department is writing in writing. Each correspondence or paperwork is separately compiled. Each paper has between 16 and 20 large fonts. In addition, each bills must be printed on paper for filing. When all of these things are observed, we realize how big this problem is.
You can see the diagram below for a more detailed analysis of this problem.
Figure 8.1. Influence Diagram
The outcome was the most important part of the project. In addition, the most important observation was that the output of the decision variables was very clear. Since the workers will be insufficient to solve this problem, I have turned the problem into a more detailed examination.
‘ According to observations made by the Minnesota Environmental Aid Office with office material consumption, each office worker spends at least 10,000 copies of copy paper each year.
‘ According to a survey conducted by the US EPA, 40% of companies' garbage is made up of paper and similar garbage.
‘ Paper and similar wastes are the most suitable materials for recycling compared to all other office wastes, so it is very important to collect, process on the premises and prepare for reuse. At this point, the collection and control of wastes makes a profit for the companies and the countries.
The benefits of reducing paper use by addressing www.reduce.org are listed below.
The first benefit is the more efficient use of storage areas. In companies, papers are filed according to date or subject and kept in boxes. These boxes occupy much space in storage areas. As a result, more efficient use of storage areas can be achieved by reducing paper usage. For example, a company that uses alternative routes instead of paper use can reduce the cost of rent by reducing its area of use.
The second benefit is to reduce postage costs. Reducing the amount of paper being mailed reduces mailing costs. For example, in America, the cost of sending an 8-page document with one side is $ 0.54. However, if this paper had been prepared with two sides, there would be 4 pages in total and the postage cost would be $ 0.41. At this point, companies will be able to reduce mail costs in the long run.
The last benefit is environmental benefits. Many companies in the US have reduced the use of paper by 25% per year by using them for copying, even if they are in different jobs on both sides of the paper. In this way, waste of energy and resources and environmental pollution are reduced by reducing paper usage.
Formulation
Decision Makers: Chief of the purchasing department
Objectives: to reduce costs by using paper and to protect natural resources.
Performance Measures: – The total amount of paper used in departments and the amount of printcartridge received for the printers
Alternative Action Formats:
– Preparation of two-sided papers in the prepared documents.
– Documents prepared to reduce the amount of paper used in the use of smaller fonts.
– Electronic invoice to prefer paper postal.
– Reduce the amount of errors by using templates when preparing letter papers.
– Copying books, publications or documents to smaller sizes instead of standard size.
– Preparing the envelopes in two directions and using the same envelope in the transposition.
Limitations:
– Billing request for paper used by companies.
– It's the mail that has to be printed.
The most important solution of this project is to send an electronic invoice to the customers of Elit ”ikolata. For this reason, the company communicated with customers and informed them about the electronic invoice. The customer's information was received and informed in order to send the electronic mail. When the documents are being prepared, the smaller font size will start to be used. In addition, the company will start using two hundred pages of paper. Old paper used on one side will start to be used as a notebook. Finally, training on printer usage will be organized for employees to reduce printing errors. As a result of these improvements, the company aims to reduce the amount of paper used by 50%.
Conclusion
During the internship, the summer practice manual questions provided me with all the questions I needed to understand the company's definition and functioning. In order to answer some questions, data gathering and data analysis were required. This process forced me a little, but I did it with the help of the company employees.
I had the chance to practice and interpret the theoretical knowledge I learned in school. Most importantly, I have compared the situations in which theoretical knowledge can not be applied in real life. In these situations, I learned that the problems should not be approached with analytical thinking and how they were applied. Working in the production department was very wounded for me. The experience gave me a chance to work with industry engineers working in the department to give insight into the information I learned at school and observe how they apply it.
I have also worked in Elite Chocolate in 20 working days. This was a long enough time to understand the company and its operations. I tried to support the engineers' projects as much as possible. If it had been a long time, I would have liked to do a project alone.
Industrial engineering works in many departments of the company. When these engineers met with the problems, I observed that they worked systematically to solve the problems. I realized that they solved their problems by thinking theoretically and analytically. In addition, industrial engineers perform all processes or operations by working with other engineers as office management or factory management. Having a majority of department managers as industrial engineers gave my profession a chance to observe every field.
APPENDIX
Table 2: Balance Sheet for 2016
Table 3: Income Statement for 2016
Table 4: Balance Sheet for 2015
Table 5: Income Statement for 2015