Project Eryilmaz Karaman

8/14/2019 Project Eryilmaz Karaman

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Manufacturing anIndustrial Machine:

Telling Untold Story

[Drilling Machine for Furniture]

Emre Erylmazmer Karaman

Supervisor: Grdal Ertek


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0. The Product

This project is a drilling machine manufacturing project. Here are some images of similar

machines and patents to our machine:

Figure 0.1 drilling machine

(http://www.google.com/patents?id=6507AAAAEBAJ&dq=combined+insertion+and+dr

illing+machine+furniture)

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Figure 0.2 Drilling Machine (https://reader010.{domain}/reader010/html5/0628/5b34544ba890f/5b34544)

Figure 0.3 Drilling Machine (http://www.global-b2b-

network.com/direct/dbimage/50248414/Medium_Size_Drilling_Machine.jpg)

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http://www.gatha.com/prod073.jpghttp://www.gatha.com/prod073.jpg


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0.1 Why drilling machine?

We have decided to produce this machine in the first place because it has a very big market in

Turkey. It is a drilling machine for furniture industry; which Turkey is very good at. There are

three major and numerous small furniture producers in Turkey and drilling machine is one of

their indispensible equipments. Drilling accurate holes in accurate angles in wood without

making defects around the hole is very important for furniture manufacturing. Making this

operation with small hand drills generally result with defects and inaccurate dimensions. So

there is high demand for this kind of drilling machine.

Moreover; this is just complicated enough for the limits of this project. Very complicated

machines would make this project impossible to finish at given deadlines. Also very simple

ones would not contribute to our learning in making a project.

0.3 Competitors

There are a lot of firms producing drilling machines locally and globally. There are

some major firms in Turkey which are Himsan, Turanlar Makine and Uysal Makine. Globally

China has the biggest producer in the world and we will examine 4 of them which are

specialized on drilling machinery production and the companies we will examine are Foshan

Shunde New Mas Wood Working Machinery & Equipment, Guandong Shunde Yujiang Wood

Working Equipment Factory and Nantong Guoquan Wood Working Machinery

Manufacturing Company and Renqiu Yongmao Wood Working Machinery Company.

0.3.1 Prices of the competitors:

All of the firms do not mention their prices on their internet sites but we sent an e-mail

to each of the foreign producers that we selected and called local producers to learn some

details about the machine like price. The price of the driller that Himsan produced is almost

$8000. Uysallar Makine is newly produced driller machine and they sell their product $17000.This machine has 3 heads. The price of the driller that Turanlar Makine produced is $6500. In

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addition to these Foshan Shunde New Mas Wood Working Company sells the machine at

$6301 for each unit. Guandong Shunde Yujiang Wood Working Equipment Factory sells their

driller at $6500, Nantong Guoquan Wood Working Machinery Manufacturing Company sells

at $6300 and Renqiu Yongmao Wood Working Machinery Company sells at $7000.

0.3.2 Lead time of the competitors:

Of course the lead time of the product is much shorter if the producer is in Turkey than

outside of the country, however it takes relatively long time when we choose a producer from

China. Himsan is located in Ankara and has a retailer in Istanbul; hence it takes 1-2 days to

lead the given order if the machine exists in the inventory. If they has not the machine at theinventory, it takes 45 days to produce a new machine and the lead time will be 46-47 days.

Turanlar Makine has a factory in Ankara but it has an export center in Istanbul. For this

reason, they can lead the given order in 1-2 day if they have the machine. They can produce a

new one in 30 days. Uysal Makina is located in Ankara and also it takes 1-2 days to lead a

given order. They can produce a new machine in 60 days. Foshan Shunde New Mas Wood

Working Machinery & Equipment is located in Foshan city. Guandong Shunde Yujiang Wood

Working Equipment Factory is also located in Foshan. Nantong Guoquan Wood WorkingMachinery Manufacturing Company is located in Nantong city and Renqiu Yongmao Wood

Working Machinery Company is located in Renqiu city. All cities are in China leading times

changes according to the shipment way such as by an airplane or a ship. If you use airplanethe

order may lead in a week but for the industrial machines generally seas are used to transport

because of transportation costs and it takes 30-40 days to lead the order in Turkey. Generally

they have inventory on hand and a buyer do not wait for the production.

0.3.3 Reliability of the competitors:

Himsan is established in 1978 and the firm aims to provide best quality to the

consumers and they claim they are using high technology. The firm is still producing

pneumatic, hydraulic and special mechanic machines. The firm has 8 retailers in Turkey and

gives importance the reliability of its equipments. Himsan gives 1 year guarantee to its

products and provide service opportunity. Turanlar Makine is established in 1958 and the firmis one of the first firms in this sector. They have 80.000 square meter factory area that

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includes 20.000 square meter closed area. Factory provides also service opportunity. They are

one of the leading Turkish firms in this industry and have market reliability. They provide 2

years product guarantee and they are capable to reach every point of Turkey in 1 day. They

also provides service opportunity to outside of the country. Uysallar Makina is established at

1981 and besides the market of Turkey; they also export their products to a lot of country.

They gives 1 year guarantee to their product and there is service opportunity. Foshan Shunde

New Mas Wood Working Machinery & Equipment claims that they used qualified and high

technological equipments. They have over 100.000 square meter factory area. They sell their

products in the intercontinental area and make above US$ 100 million trade. The company

has taken the ISO 9001 -2000 quality system certification and was awarded hi tech

enterprise. They say Sharp toolsmake good work and have different scientific tests on their

equipments. They gives 6 months guarantee and service opportunity. If the product is

defected, the buyer has a chance to change the product or defected part can be changed.

Guandong Shunde Yujiang Wood Working Equipment Factory is also has ISO 9001 -2000

quality certification and claims that they have after sale service system opportunity. They call

themselves king of drill and take trustworthiness as a basis. They gives 1 year guarantee to

their products. Nantong Guoquan Wood Working Machinery Manufacturing Company also

claims they have qualified materials and use high technology to develop its products. They

say they specialized in R&D. Also they have ISO 9001 -2000 quality certification and CE

certification. They give 1 year guarantee to their product. They have a huge network in world

wide. Renqiu Yongmao Wood Working Machinery Company also considers equipment

reliability and has own quality department. They have China quality center certification and

ISO 9001 quality system. They gives 6 months guarantee to its products.

0.3.4 Regular maintenance costs of the competitors:

Drilling machine has not very complex systems and has not very expensive

components. If the equipments are reliable, the maintenance cost will be lower. The most

important part of the machine is the engine and drillers. Himsan Makine suggests

maintenance in 4-5 years period besides monthly maintenance which is lubrication. The

former maintenance cost is almost $1000 and the latters cost is $30 in a year. Uysallar

Makina suggests only lubrication which causes $30 in a year. Similarly, Turanlar Makine

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suggests only lubrication which causes $30 in a year. Other 3 Chinese firms have the same

idea with Turanlar and Uysallar Makine.

Another cost may be the electricity cost. All machines have a standard features which

are suitable to European standards. They use engines with the power 2.2 kW and this engine

spends almost 5 kW in a day. In a year the electricity cost reach to 6060 kW if the driller has

only one engine.

Workers salary may be another maintenance cost. This is almost $500 in Turkey but

with the insurance this cost increase almost $650 to a firm for a month and this makes $7800

in a year.

0.3.5. Irregular maintenance costs of the competitors:

Irregular maintenance cost exits if a breakdown occurs. The most usual breakdowns

are pneumatic and head breakdowns. Pneumatic breakdown costs $15 20. If the head

breakdown occurs, it causes almost $100 for a head which consists only 1 spindle but this cost

changes according to number of spindle the machine exists.

If a breakdown occurs, the service team of the firm may be called and this cause an

irregular cost to the firm. This cost changes according to the firm. Himsan Makine provides

this service almost $ 250, Uysallar Makine provides $150 and Turanlar Makine provides this

service almost $120.

Other irregular costs may be the raise of the cost of raw material, cost electricity, increase of

the legal salary amount.

0.3.6 Energy type used:

All of the products of the all firms need electrical energy.

0.3.7. Past References of the supplier:

Himsan Makine also has export channels besides local sellings. Gazi University and

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Bilkent University uses the products of Himsan Makine. Uysallar Makine has references of

locally and globally. The most known local company is Istikbal Mobilya which uses the

products of Uysallar Makina. Moreover, Alfemo Mobilya, Kontur Limited, Beyza Mobilya

and some other local firm also uses this companys machines. Also, Eurl Polymeuble in

Algeria, Eser Company in Uzbekistan and some other countries. Turanlar Makine exports its

machines to 53 countries that include England, Mexico, Russia, Porto Rico, South Africa,

United States etc. In Turkey, there are lots of firms that use this companys machines such as

Vona Mobilya, Nur Ahap etc. Foshan Shunde New Mas Wood Working Machinery &

Equipment gives an example of famous Taiwan factory which imports machines before but

now they use Foshans machines. The companys name is Chensen Wooden Products

Company. Nantong Guoquan Wood Working Machinery Manufacturing Compans sells its

products highly to in the United States, Greece, Russia, Malaysia and to the most of places in

the world. Guandong Shunde Yujiang Wood Working Equipment Factory do not mention

about their exports or references. Renqiu Yongmao Wood Working Machinery Company sells

its products to United States, Ukraine, Romania, Madagascar and Tanzania.

0.3.8 Estimated life time of the supplier:

Himsan is 30 years old company in this industry and aims to be one of the leading

company in this area. They have many retailers and trying to spread their products in to the

industry. It seems that there will not be a big problem with the continuity of the factory at

least 5 years. Turanlar Makine is almost 50 years old and exports their machines over 50

countries and they are trying to enlarge their influence area. They give importance on research

and development and develops new machines according to new technology and consumer

needs. Also they aim to be the one of the biggest in this area. Hence we estimate that the

companys life will not be less than 10 years and we believe that Turanlar Makina will live

another 50 years. Similarly, Uysal Makina is trying to be a global member of this industry and

has exports to many countries. We estimate that this company also has a life more than 10

years. Foshan Shunde New Mas Wood Working Machinery & Equipment has a huge revenue

and may be the most global firm in this industry. They aim to increase their market share and

we believe that their life will not be less than 15 years. Nantong Guoquan, Guandong Shunde

Yujiang and Renqiu Yongmao also has similar aims to Foshan Shunde and has similar markets

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in the world. We believe that there will be big competition between these firms and the

lifetime of these firms will not be less than 10 years.

0.2 - 4 How and where is the machine used?

This machine is used in furniture manufacturing industry. It is used for drilling holes

accurately without making defects on the material in different angles and sizes.

Drilling is one of the most basic and frequently used operations in the furniture manufacturing

industry. Also, it is critical to perform this operation exactly without defects. First reason is

the proper use of the furniture. If the holes are not exact, it will twitch or break easy. The

second reason is appearance of the product. It is the one of the most important motivators for

the consumers to buy furniture. Defects will make a bad appearance. So furniture producers

need machines that can perform this operation exactly. Small hand drillers will not be enough

for that. So, our machine will handle their needs.

Moreover, this machine can be used for drilling purposes in similar materials like cork bone

hard rubber and hard plastic. These materials have similar toughness and hardness

characteristics with wood. Thus, our machine will be in the purchasing portfolio of theseindustries too.

How does the machine actually work?

It basically works by the swing of spindle at generally 1500-2000revolutions/minute. This is

the proper spindle speed for woodwork. Both lower and higher speeds will be inefficient by

increasing electric consumption. Also too high speeds will cause defects on material.

This machine has 5 main components: a work piece support (displayed as number 3 on figurebelow), motor (5), a guide column (2), a gear block (4), and a frame (1).

The gear block (4) and the motor (5) can move on the guiding column (2). This makes the

movement of spindle. Also it makes possible to work on different size of materials. This

movement is made by a lever (6).

The height of the guiding column will be 70cm. so it will be possible to work on materials

40cm high at most. The remaining 30cm is for motor, gear block and spindle.

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There also is spindle carrier (8). Different sizes of spindles can be attached to it, so it makes

possible to drill holes in different size and length. Three standart spindles will be supplied to

customers. They are:

Length(cm) Diameter(cm)

1 8 0.52 12 13 16 1.5

We will manufacture 9 more types of spindles however the customers will have to pay for

them if they want to purchase them. Here are their length and diameters:

Length(cm) Diameter(cm)

4 8 15 8 1.56 8 27 12 1.58 12 29 12 2.510 16 1

11 16 212 16 313 16 4

Some customers can need special purpose spindles. This will be an option too. We will

manufacture them after making a cost analysis for the demands of customers.

Apart form these, the work piece support is rotatible. So this makes possible to drill hole on a

material in different angles (3). Also, the workpiece support will have attachment tools on the

sides so that material can be held stable when working in different angles.

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Figure 0.4 Parts of drilling machine

(http://www.google.com/patents?id=m7M0AAAAEBAJ&pg=PA1&dq=drilling+machine

+furniture)

Figure above is taken from a patent similar to our product. We eliminated some of the parts in

our project. (e.g. 13, 15) other parts are explained above the picture.

1. Selecting the Manufacturing Type and Equipment

1.1

We selected job shop production system to produce the drilling machine because

this system has characteristics which the drilling machine needs to be produced. The general

properties:

- Flow: Jumbled flow

- Flexibility: High

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- Products: Many

- Volume: Low

- Capital investment: low

- Variable cost: High

- Labor need and skill: High

In a job shop activity we can do several jobs at the same time and all processes do not

need to do to all equipments. Moreover, job shop process allows us to sell our capability and

provide us to compete with other producers in the market.

1.2.

We need to use some significant industrial equipment to produce drilling machine

because each important part of the machine we will produce, we need another equipments

(machines). Basic components of our machines are driller, legs, engine, cylinders, adjustable

platform and cover.

1.2.1

Casting machine:

Casting is a manufacturing process that based on the solidification of molten model in

a given mold to get a needed shape of materials. For the drilling machine, suitable driller must

be used for each operation according to the depth or width of the hole. For this reason, we

need a head to hold each driller.

Figure 1.1 Casting Machine

1.2.2Forging Machine

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Figure 1.3 Machining Machine

1.2.4

Extrusion Machine

Extrusion is a manufacturing process to generally create long objects. While making a

drilling machine, we need to apply this procedure to obtain cylinders. Cylinders resemble to

backbones because these parts provide to machine stand and adjust the height of the main part

and material platform.

Figure 1.4 Extrusion Machine

1.2.5

Bending Machine

To protect the equipment like engine part of the machine from chips or impacts we

will need the cover these parts and we will need a metal bending machine. We will bend sheet

metals that we will buy from outside.

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Figure 1.5 Bending Machine

1.2.6

Metal Sheet Cutting Machine

To get the shape we needed properly, we will need to cut some parts of the sheet metal

according the shape we wanted and according to size we need.

Figure 1.6 Metal Sheet CuttingMachine

1.2.7

Power Generator

We need a power generator to continue the production if the electricity cut occurs. We

need this equipment indirectly, because there is no direct use of this machine.

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Figure 1.7 Power Generator

1.3

1.3.1

1.3.1.1

Die Casting machine:

One of the worldwide supplier of casting machine is a Taiwan firm whichs name is

Chen Feng Machinery Company. The target market of the company is the entire world. The

cost of this machine is $90000. Another global producer is Shangai Halixun Die Casting

Machine Company. The price of their machine is $105000. We could not find a local casting

machine producer.

1.3.1.2

Forging machine:

One of the important supplier of this machine is Dieffenbacher which is located at

Germany. The second hand price of the model 1000-A is 185000 Euro. Another German firm

is Grabener and the second hand cost is 44000 Euro. Also, there are several Chinese firms that

produces forging machine.

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1.3.1.3

Milling Machine

Kitamura is one of the leading companies that produces machining machines that is

located in Japan. Generally the price of their products is almost $70000. Also there are more

economical machines such as CNC vertical machining machine that is produced by Monarch.

The price for the second hand product is $16700. Also there are some Turkish firms that

produce machining machines. Gkmasan is one of the leading companies in Turkey. The price

of their product is $18000. Tami Makina sells this product almost $15000.

1.3.1.4

Extrusion Machine

Waldrich-Coburg is a leading company in this area and producing extrusion machines.

The firm is located in Germany and the price of the product is $80600. Another important

firm is Voronezh Machine which is a Russian firm. The price for the second hand of the

product is $70700. We could not find a local producer.

1.3.1.5

Bending Machine

VSS is a bending machine producer and a second hand bending machine is enough for

us because we will use this machine to cover the important parts of our machine. The price of

the machine is $10300. The location of the machine is Czech Republic. Another bending

machine producer is Strojaren Piesok. The cost of their machine is $12000. Haseller is a local

producer of this machine. The cost of the machine is almost $11500.

1.3.1.6


C-T is a local producer of cutting machine. They use different methods such as laser

and plasma. The cost of machine laser machine is $85000. Another laser cutting machine

producer is Mazak. The second hand of their production is $139000. But we do not need

complex and expensive laser machines. Adige produces pneumatic cutting machines and thecost of their product is $1120.

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Birliksan is a local producer of mechanic sheet cutting machine and the cost of their product

is $3600.

1.3.1.7

Power Generator

Yamaha is a well known power generator producer. There are various models of

Yamaha but 2300 watt is enough to keep the work of the driller. The price of this generator is

$749. Another global generator producer is Mitsubishi which provides 2500 watt. The price of

this product is $825. Locally, Aksa is a famous power generator producer. The cost of 3kw

power generator of Aksa is $980.

1.3.2

1.3.2.1


Chen Feng is a located at Taiwan and it takes 30-40 days to deliver the product to

Turkey. If they do not have the product it takes 30-35 days. Shangai Halixun Die Casting

Machine Company leads the given order within 30 days. They generally hold inventory.

1.3.2.2

Forging machine:

Dieffenbacher is located in Germany and it takes 7-14 days to lead a given order in

Istanbul. Grabener is also located in Germany and similarly it takes 7-14 days to lead the

given order.

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1.3.2.3

Milling Machine

Kitamura has 3 centers in the world. The main center is in Japan, one in USA and the

last one in Germany. If we give them an order, the machine will come from Germany and the

lead time takes 7-12 days. Monarch Machine is located in USA and it takes 3-4 weeks to lead

the given order in Turkey. Tami Makina is located in zmir and it takes 1-2 day to lead the

given order if they has the machine. If they has not the machine it takes 21-25 days to produce

new one.

1.3.2.4

Extrusion Machine

Waldrich-Coburg is a German firm and it takes 3-5days to deliver the product.

Generally they hold inventory on hand. Voronezh Machine is located in Russia and it takes 4-

7 days to edliver the given order. If they have not the product on hand they can produce a new

machine in 21 days.

1.3.2.5

Bending Machine

VSS is a Czech firm and it delivers the product in a week and if they have nopt the

product on hand, they can produce the new one in 10 days. Strojaren Piesok is also a Check

firm and has similar properties about delivery. Haseller is a Turkish firm and located in

Kocaeli. It takes 1-2 days to deliver the product.

1.3.2.6


C-T machine is located in stanbul and it takes 1-2 days to deliver the given order.

Mazak Machine is located in USA and it takes 14-21 days to deliver the product. Birliksan is

located in Konya and it takes 1-2 days to deliver the product.

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1.3.2.7

Power Generator

The factory of Yamaha power generator is located in USA but it has some sellers in

Turkey like Aksa Jeneratr that is in stanbul. For this reason it takes 1 day to get a Yamaha

power generator. Similarly Mitsubishi power generators are located in USA but a lot of dealer

in Turkey like Alimar Jeneratr and 1 day is enough to get a Misubish power generator. Aksa

is a Turkish firm that is located in stanbul and similarly 1 day is enough to get an Aksa

generator.

1.3.3

1.3.3.1


Chen Feng is founded in 1976 and acquired the certificate of qualification of the

Douglas Aircraft Company, Good Design, Excellence and Award for Industrial Technology

certificates from MOEA. The firm acquired Chinese National Laboratory Accredition

Certificate and CE certificate. The firm also has ISO9001: 2000 & AS9100 certificate.

Shangai Halixun is a new company in this area and sells its product to entire of the world. The

firm has 15000 square meter area.

1.3.2.2

Forging machine:

Dieffenbacher is internationally active and they export %70 of their production. They have the

certificate ISO 9001 and VDA 6.4. The company is 130 years old and highly reliable. They

provide online support for 24 hours and 365 days in a year, quick service deliveries to Europe,

America and Asia, maintenance and modernization opportunity. Grabener also has worldwide

operation capability and provides service to its customer. They also provide service in the

field of electricity. The company has huge history that established in 1924. We could not find

a local producer.

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1.3.3.3

Milling Machine

Kitamura provide service acroos the world. The firm founded in 1933 and has 10

awards like Japan Industrial Chairman Award. Tami Makine has a good R&D. They

developed two techniques in their area and have CE standards. Monarch Machine has 55

years of experience and provides complete service opportunity.

1.3.3.4

Extrusion Machine

Waldrich Coburg is founded in 1920 and provide service to its customers. It has

worldwide market power and developed ValueTec technique which increases production

efficiency. They gives 2 years guarantee. Voronezh Machine offers good quality even the

second hand of their products has a good market.

1.3.3.5

Bending Machine

Haseller gives importance and R&D and they claim the fastest laser cutting. They

offers haig quality and they have CE certificate. They provide service opportunity. Strojaren

Piesok also provides service opportunity. Second hand of this product is also valuable at the

marketplace. VSS also has service opportunity and high second hand demand in the market.

1.3.2.6


C T is specialized about cutting machines and they have different methods such as

waterjet, plasma and laser. The plasma technique that they use can cut any material in the

world if the thickness is between 0,1 mm to 1,1 mm. They can cut 25 mm materials by using

laser technology. They provide service opportunity and has many qualifications like ISO 9001

and CE. Mazak is a worldwide company that provides 2D and 3D laser cutting systems. They

provide support if need and has service opportunity. They also provide technical support oninternet. If a part of the machine is needed, the customers do not need to wait for a long time

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because they always keep inventory. Birliksan produces mechanic sheet metal cutting

machine and exports %85 of its production. They made production by using CNC machines to

provide high quality to the customer.

1.3.3.7

Power Generator

Yamaha is a well known company in all over the world and has various generator

types. They have a lot of dealers in all over the world and provide worldwide service

opportunity. The firm has CE and all ISO certificates. Mitsubishi has very similar features toYamaha. Aksa Jeneratr provides service about the establishment of the generator and detects

the generator you needed. The firm has EN ISO 14001:2004, OHSAS 18001:1999 and TSE

certificates. The firm exports its products to lots of countries like Russia and Saudi Arabia.

1.3.4.

1.3.4.1


Chen Feng suggests 3-4 years of regular maintenance and this costs $800. Besides this

lubrication and clarification of some parts is needed and this makes $40 for a year. Shangai

Halixun suggests only lubrication and clarification is enough which makes $40 for a year.

Electricity may become another cost for maintenance. At most the machine has total power

42,4 kW for the product of Chen Feng. However, this is 37,2 kW for Shangai Halixun.

1.3.4.2

Forging machine:

Dieffenbacher claims that only lubrication is enough for the maintenance and this cost

is almost $40 for a year. Grabener thinks similar to Dieffenbacher. The power of Granaber is

46 kW and Dieffenbacher has 42 kW total power.

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1.3.4.3

Milling Machine

Kitamura do not suggest a regular complete maintenance. They think lubrication is

enough to keep the machine in proper situation. Tami Makine claims if the machine is used

proprley there will be no problem due to lack of maintenance exept from lubrication. Monarch

Machine suggest regular service check and claims this application will raise the lifetime of the

machine. The service check price of the Monarch Machine changes according to location. For

Europe it is almost $300 exept from travelling cost. Kitamuras products power is 65 kW.

Tami Makine uses horse power as a power measure and their machines power is 10 hp.

Monarch Makines machine has 45 kw.

1.3.4.4

Extrusion Machine

Waldrich Coburg give importance to clarification of the each part after the

production and suggest lubrication. They claim if these were done there will be no irregular

maintenance costs because of the product. Voronezh thinks similarly but they suggest a

regular check in 2-3 years. Total power of the product of the Waldrich Coburg is 45 kW andthe power of the product that Voronezh produced is 38,4 kW.

1.3.4.5

Bending Machine

Haseller suggests only regular lubrication for mechanical part and systems. Strojaren

Piesok has the similar idea with Haseller. VSS suggests just lubrication and proper use. The

power of Hasellers product is 4,4 kW. The power of Strojaren Piesok is 6 kW. The total

power of VSS is 7,5 kW.

1.3.4.6


C T suggests just only regular lubrication for mechanical part and do not try to

lubricate or clear the laser system. Mazak has the similar idea. Birliksan suggests regular

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1.3.5.3

Milling Machine

Deformation of the spindle of the machine is most possible breakdown and Kitamura

sends a new one if the machine is under guarantee and there is no user fault. Besides this they

can send if the firm offer and the price is $11000. Tami Makines price is $5000 and

Monarch Machines cost is $7000.

1.3.5.4

Extrusion Machine

Deformation of the cylinder mold and tank are two usual breakdowns. Waldrich-

Coburg suggest changing these parts instead of repair and the prices of the parts are $5000

and $8000. Voronezh Machine thinks similarly and the prices of them are $4600 and $6200.

1.3.5.5

Bending Machine

The breakdown of the engine is most usual mistake and VSS changes this part $4200,

Strojaren Piesoks price is $3200 and Haseller wants $3600.

1.3.5.6


The most expensive and usual breakdown of the laser machine is laser system

breakdown C-T changes the laser system $44000 and Mazaks price is $58000. If serviceneeded without changing any part C T wants $300 and Mazaks price is $550 except from

travel costs for the Europe. For the hydraulic machine of the Birliksan, the common

breakdown is the wear of the blades and the changing cost is $900. The repair of this part is

$200 but the lifetime will not be longer as the new one.

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1.3.5.7

Power Generator

The most common breakdown of the power engines is oil burning and the changing cost of oil

tank is $48 for Yamaha, $60 for Mitsubishi and $58 for Aksa. Moreover, engine deformation

is another usual breakdown and changing price of Yamaha is $219, $230 for Mitsubishi and

$280 for Aksa. Dealers of these firms also provide service but this includes of a cost between

$40 - 60.

1.3.6

All of the macines of all of the firms uses electrical energy axept from powergenerators. They use fuel and produce electrical energy by burning the fuel. Additionally,

casting machine can use natural gases to produce energy.

1.3.7

1.3.7.1


Chen Feng is a global player of this industry and exports its product to all of the

continents such as America and Europa. The most importance reference of the Chen Feng is

famous German firm Schoen. The made a deal about production, marketing and design.

Similar to Chen Feng, Shangai Halixun exports to its machines to all of the world but the

company is 1 year old and has not a famous firm to be shown as a reference.

1.3.7.2

Forging machine

Dieffenbacher has service centers and sale offices around the world such as USA,

Brasil, Russia, India, Malaysia, Australia and China. Volkswagen is a famous car firm that

uses Dieffenbachers machines. Grabener is also a worldwide producer. The most known

company that uses this firms machine is the famous car firm Ford.

1.3.7.3

Milling Machine

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Kitamura is maybe the most important player of this area in the world. There are lots

of firms that works with Kitamura such as Samkrish Sachine Tools and Packard Machinery.

Tami Makine is one of the leading firm in Turkey in this area but they did not mention a

specific name of a firm that it can be a reference. However, the firm exports the significant

amount of its products. Monarch Machine is a American firm and most of its work in USA.

Washington municipality can be shown as a reference for Monarch Machine.

1.3.7.4

Extrusion Machine

Waldrich-Coburg is a well known German company and there are a lot of firms that

uses the products of this company such as GMW/HPT Burg and Berthold Hermle. Voronezh

Machine is anold company and there are lots of firms that uses this companys products butthe company did not show any references.

1.3.7.5

Bending Machine

Strojaren Piesok, Haseller and VSS did not mention any specific firms name but they

share the information that they export significant amount of their production.

1.3.7.6


Some of the references of C T are KMT, Kjellberg, GE Fanuc and Fagor. Mazak is a

global player and has many factories such as in Italy, Germany and Japan. Roosen Group and

Machine Toolworks Inc. are only two of the references of Mazak. Birliksan exports %85 of its

production but they did not mention about any of their customers.

1.3.7.7

Power Generator

Yamaha power generators have worldwide usage like Leafplan. Mitsubishi generators

are being produced more than 100 years. There are a lot of firms that uses Mitsubishi

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generators such as Akbank and Avivasa. John Deere, Power Generation and Newage AVK are

references of Aksa power generators.

1.3.7

1.3.7.1


Chen Feng is established at 1976 and have many awards that were mentinod in part

1.3.3.1. The firm has a strong R&D department and aims to be the leading company in this

area. The estimated lifetime of the firm is not less than 10 years. Shangai Halixun has aworldwide market even it is a new company. If the company can stand 2 years, we think that

the estimated lifetime of the company will not be less than 10 years.

1.3.7.2

Forging machine

Dieffenbacher is a located most of the strategic places in the world. They have a huge

market and they are one of the leading companies in this area. We estimate that their lifetime

will not be less than 15 years. Grabener is working on different and important areas such as

automotive industry and shipping industry. They are one of the leading supplier of these areas

and estimated lifetime of the firm is not less than 10 years.

1.3.7.3

Milling Machine

Kitamura is founded in 1933 and has more than 200 patents that reflects the strong R

& D department of the firm. The companys motto is Limitless Creativity. They are a lot of

areas such as automotive industry to medical machinery industry. The estimated lifetime of

the firm is not less than 15 years. Tami Makine is established in 1989 and has strong export

channels. They also give importance to R&D and they use a new technology Finger Jointing

System which they developed. The estimated lifetime of the company is not less than 7

years. Monarch Machine has a strong distribution and service network in all over the world

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1.3.7.7

Power Generator

Yamaha and Mitsubishi are 2 of the leading company in this area. There are also other

important producer like Honda. These firms have good market opportunity, many dealer in

many countries even have dealers in most of the cities. The estimated lifetimes of Mitsubishi

and Yamaha are more than 15 years. Aksa is the most important local power generator

producer. It has good export channels and trying to enlarge its market size according to

companys policies. The lifetime of Aksa will be more than 10 years.

2. Raw Materials and Subcomponents

2.1

1- Electrical motor

2- sheet metal

3- Slab metal

Here is the BOM graph. All the components are explained below the graph.

Figure 2.1 Bill of Material

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be preferred because of their quality and reliability. So they are a strong firm and there is no

concern about any future collapse if a purchasing agreement is made with them.

They produce nearly 20 motors which are suitable for our project. Here are some of them.

These are the ones with 960rpm (revolution per minute) speed and 3kW power.

And these are the ones with 1440rpm speed and 3kW power.

There are 750rpm and 3000rpm models but 750 are too slow. Also 3000 is unnecessary for

our project so we wont prefer it because of the extra cost.

Here are the price and delivery times for order amounts of 10 25 and 100 for MSC 100 L2-4

model.

product

amount

price per

unit($)

average delivery

time(days)10 200 325 195 10

100 185 30

2 - Zhejiang Jialile Electrical Machinery Co., Ltd.:

32

MODEL POWER SPEED CURRENT EFF. TYPE SERIE

MS132S-6 3 960 7,21 79 THREE-PHASE MS Series

MSB132S-6 3 960 7,4 81 BRAKE MSB Series

MSC 132 S-6 3 960 7,4 81 THREE-PHASE MSC Series

MODEL POWER SPEED CURRENT EFF. TYPE SERIE

ML100L2-4 3 1440 17 79 SINGLE-PHASE ML Series

MS100L2-4 3 1420 6,47 82,6 THREE-PHASE MS Series

MSB100L2-4 3 1410 6,78 82 BRAKE MSB Series

MSC 100 L2-4 3 1420 6,8 82 THREE-PHASE MSC Series

MY100L2-4 3 1440 17,1 78 SINGLE-PHASE MY Series

MYT100L2-4 3 1400 17,83 77 SINGLE-PHASE MY Series
http://__dopostback%28%27dgr_sayfalar%24_ctl2%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl3%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl4%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl2%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl3%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl4%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl5%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl6%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl7%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl2%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl3%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl4%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl2%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl3%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl4%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl5%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl6%24_ctl0%27%2C%27%27%29/http://__dopostback%28%27dgr_sayfalar%24_ctl7%24_ctl0%27%2C%27%27%29/


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This is a Chinese firm. They are in the field for more than 20 years and they are one of biggest

Chinese producers currently. It has more than 500 staff. So it is a big firm which can be

trusted about its future. However there are concerns about quality of its products. We could

not get any information about their past references.

Their biggest advantage is their prices. They supply 3kW motors with more 2500rpm speed at

the price of 1500rpm motors of other firms. So, if we purchase their product, we will increase

our machines quality without changing the price. Furthermore, they are very flexible about

producing motors for special needs. So this will be an advantage for us if we make

innovations and try to change our products design in the future.

However, reliability and quality is still an issue. We look forward to get more information

about their products in coming weeks.

Here are the price and delivery times for order amounts of 10 25 and 100 for 3kW and

2500rpm model.

product

amount

price per

unit($)

average delivery

time(days)10 193 3025 193 30

100 175 45

3 - Elsan:

Elsan is the biggest Turkish producer in the field. They are a producer since 1964. They have

a variety of products. They have a very good service system. This is their biggest advantage.

Also delivery time of their products takes less time than foreign producers. So if we choose

them, we will need less storage area in our factory; because we will be able to purchase

motors from them quickly in any amount we want. This is a very big advantage.


1500rpm model.

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product

amount

price per

unit($)

average delivery

time(days)

10 210 325 210 6100 200 20

4 - LeroySomer:

LeroySomer is one of world leading companies at electrical motor production. Most

significant characteristic of LeroySomer is their quality. Their product is significantly

qualified from Chinese producers which supply cheap product. Also LeroySomer is one of themost reliable companies in the field. There are nearly no concerns about their future and

product quality. Also they have the widest product variety.

So if we cannot be sure about qualifications of cheaper products, we will purchase form

LeroySomer without any doubt.


1500rpm model.

product

amount

price per

unit($)

average delivery

time(days)10 245 1525 245 15

100 245 15

To sum up;

There are similar producers in the field. They can be grouped into four. First group is Turkish

firms which have foreign partners. They use the quality of their partners and supply that with

domestic service and interaction. Tesla Motor is an example to these companies. Second

group is Chinese producers. Their products are cheaper than others. However there are

concerns about quality. Third group is domestic producers. They are generally produce higher

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quality products than Chinese firms but they are more expensive. Elsan is the biggest of these

firms. The final group is world leader companies. They have the highest quality products but

they are expensive.

When comparing these firms, we decided to eliminate Tesla first. They had a Chinese partner.

However that Chinese firm was the fifth biggest producer in china. Instead of buying from

them, we could buy from bigger Chinese firms which will probably be more reliable and

qualified. We will probably get less service than Tesla but the product will be more reliable

and qualified.

Than we passed comparing Chinese firms with Turkish ones. Chinese product was cheaper.

However domestic ones (especially Elsan) had very good service. Also Chinese firms were

new on the market and finding past references about them was hard. So we could not trust

Chinese producers. Also there was good reference about Elsan. So we eliminated Chinese

firms too.

LeroySomer was always a good option but we had concerns about the prices. We were sure

that using their product will increase our products quality. However price was important for

us. We started this project in the goal of producing cheap domestic drilling machines with

good service. So we investigated more about Elsan and its products quality. Our searchresulted in more trust in Elsan.

So we finally concluded to purchase electrical motors from Elsan.

Sheet and slab metal:

Erdemir is the only company for sheet and slab metal purchase in Turkey. So we will either

buy metal from Erdemir or foreign suppliers.

There are nearly 30 companies like Erdemir around world especially in India and China. We

learned that transportation costs are an important part of metal industry, because metals are so

heavy. So, buying slab or sheet metal from very distant foreign countries nearly doubles the

costs. After that, we started searching about neighbor countries. However, we could not find

any firm like Erdemir at neighbors.

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So, we concluded that Erdemir is our only option to buy sheet and slab metal.

Here are the price and delivery options of Erdemir.

Delivery time: 5-7 days (Delivery time is standard at Erdemir. It does not change with the

amount we want to buy. Because they are a huge firm and they have inventories to handle 10

firms like us any time.)

Price: We selected the 6837 model. Because it is easy to deform and hard enough for our

purposes. The price per ton is $765 for this product.

3. Manufacturing facility and process

3.1 How does the production take place?

Manufacturing facility is composed of five job shops: casting, rolling, forging, bending,

machining. Every part of the product is manufactured by different activities in different job

shops. Besides, machining is a common process for all parts.

Manufacturing of five basic and significant parts are explained below. (Small parts like

screws are purchased from suppliers.)

3.1.1 Spindle:

Spindles in different size and length will be produced in our facility. Raw material for it is

slab metal. However, spindle is the key part of our product. Because it is the most vulnerable

part for wear and break downs. So spindle must be very strong and hard.

Spindle can directly be produced by machining, but it will be very costly. So, applying

machining after certain operations will be more cost effective. These operations can be either

casting or forging. A final machining process will be needed for both activities. Comparing

them, we know that parts which are produced by forging are stronger and harder than parts

produced by casting. It is because of the fact that there is strain hardening in forging and also

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it forms continuous grain flow lines. (Kalpakjian &Schmid, 2008) also, forging is more costly

than casting. However, we need spindles hard and strong. Because of that, we chose forging

operation for spindle production.

After forging, final machining operations will be made.

3.1.2 Work piece support:

Work piece support is a wide and bended on the edges part to carry the work piece. It must be

strong enough to carry weights of 200kgs. So we will need a metal part of thickness 3mms.

In this process; we will use sheet metal. Sheet metal will first go to a rolling operation. This

operation is for getting rid of residual stresses in the material which can be a cause of further

defects. Than it will go to bending machines and its edges will be bend. Finally there will be

maching for final holes and cuts.

3.1.3 Guide column manufacturing:

Guide column is also a key part. It will carry the weight of the electrical motor. So we will

manufacture it by forging. Slab metal will first be forged. Then it will be machined.

3.1.4 Gears block manufacturing:

Gear block has a complex shape. The most suitable process for manufacturing complex

shapes is casting. (Kalpakjian &Schmid, 2008) it is very hard to produce it with other

processes. So we will use casting for this process.then we will bend its edges. We would not

need this operation, namely we would do everything at casting; but it reduces cost to make

bending. A final machining will be needed like all other processes.

3.1.5 Motor covering plates manufacturing:

These plates are for only covering parts. So we do not need them strong or hard. So we will

use sheet metal as raw material and make it thinner with rolling. Then we will bend it for

appropriate purposes. And then a final machining will be made.

3.1.6 ASSEMBLIES:

After manufacturing of these parts, they are assembles together with other parts purchased

from suppliers.

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An activity chart of manufacturing process and facility is given below:

Figure 3.1 Activity Chart

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3.2 Facility Layout type:

Our facility will have a process based layout.

Here is a comparison of product based and process based layouts and wyh we have chosen

process based:

3.2.1 Process based layout:

Process layouts are found primarily in job shops, or firms that produce customized, low-

volume products that may require different processing requirements and sequences of

operations. Process layouts are facility configurations in which operations of a similar nature

or function are grouped together.(http://www.referenceforbusiness.com/management/Int-

Loc/Layout.html) So it is a job shop. This layout is suitable for firms that have lots of

different kind of operations. All operations need various kinds of processes. So establishing an

assembly line will be very costly for these firms; because they have to buy from same

machine for every part they need. Instead of that, they buy an appropriate number of machines

and group them into ones with similar functions. So, this layout gives firms the flexibility to

handle big number of different processes and activities. This is called process based layout.

General advantages of process based layout are listed below:

1. Flexibility: firms can handle a big number of different kinds of processes.

(http://www.referenceforbusiness.com/management/Int-Loc/Layout.html)

2. Motivation: workers will so different processes and activities. So they will not be

bored of doing the same things. Also they will have to reflect their personal abilities to

the job instead of standard things, so they will be motivated of their product.

(http://www.referenceforbusiness.com/management/Int-Loc/Layout.html)

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3. Less system failure cost: there will be similar machines, so when a machine is broken,

other machines will be able to cover for it. So facility will not stop working bcause of

break downs. This means lower failure costs.

And general disadvantages are listed below:

1. Utilization: machines will be less utilized. Their utilization rates will depend on output

requirements.

2. Cost: per unit costs will be higher than product based layouts.

3. Confusion: system will be less automated. So there will be confusion. Organization is

important. (http://www.referenceforbusiness.com/management/Int-Loc/Layout.html)

3.2.2 Product based layout:

Product layouts are found in flow shops (repetitive assembly and process or continuous flow

industries). Flow shops produce high-volume, highly standardized products that require

highly standardized, repetitive processes.

(http://www.referenceforbusiness.com/management/Int-Loc/Layout.html) it this layout,

machines are sequenced one after other. So a material enters beginning of a line and exits line

after sequenced operations. Workers do same repetitive jobs. Machines are highly utilized.

There is two types of this layout which are paced and unpaced. Paced lines have standard

speeds which are arranged by automatic lines.

General advantages of process based layout are listed below:

1. Output: large volume f output is produced continuously.

2. Cost: unit costs are law. Also, workers are trained less because of the repetitive tasks.

Also, everything is organized, so it requires less organization attention. All of these

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reduce costs. (http://www.referenceforbusiness.com/management/Int-

Loc/Layout.html)

3. Utilization: machines and workers are highly utilized because of standardization.

And general disadvantages are listed below:

1. Motivation: workers will do same repetitive tasks. No ability incentive.

2. Flexibility: firms will not have much flexibility.

3. Failure costs: when a machine fails, all line will stop working. So it will be costly.(

http://www.referenceforbusiness.com/management/Int-Loc/Layout.html)

Our facility will have a process based layout.

The reason is we do have a big number of varieties of tasks. Handling these tasks on a

product based layout will be nearly impossible. We will need too many machines, so facility

setup cost will be very high. For example, every part of our product requires a machining

process for cutting excessive parts or drilling screw holes etc. So if we arrange processes on

assembly lines, we will have to buy nearly 10 machining machines. This will sky up the costs.

Instead of that we will use process based layout and buy one or two machines. Also, this

layout will give us flexibility of making changes in our product. Also process based layout is

appropriate for standard products which are produced in high volumes; however our product

will not be produced in high volumes.

3.3 Other products that can be produced in our facility:

Most similar products to furniture drilling machine are plastic drilling machines and metal

drilling and milling machines. These products can be produced with smaller changes in the

product design.

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To produce plastic drilling machine, we will use less costly material. Because this operation

will need less force and hardness than woodworking. So spindles will be less costly. Also

other parts will be thinner.

To produce metal drilling machines will be harder and high costly. Because we will need more

powerful electrical motors. Also probably we will need to buy spindles from suppliers,

because they must be too hard and strong. We will use more forging operations to make parts

more powerful.

3.4 Fixed cost of establishing the facility:

Die Casting machine: $90000

Forging machine: 185000

Milling Machine: $18000

Extrusion Machine: $80600

Bending Machine: $10300

Metal Sheet Cutting Machine: $85000

Power Generator: $980

Land and building cost: $300000

Total: $769000

3.5 Typical unit production cost:

Regular maintenance cost of the machines:

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Die Casting machine: $840

Forging machine: 46

Milling Machine: $300

Extrusion Machine: $100

Bending Machine: $75

Metal Sheet Cutting Machine: $50

Power Generator: $10

TOTAL: $1460

Total electricity consumption per year: $60000

Total worker cost: 20 * 12 * 650 = $156000

General total: 156000 + 60000 + 1460 = 217460

Expected production per year: 800 machines

Cost per unit: 217460 /800 = $271

Raw material and purchased materials like electrical motors must be added to this cost. Also

there may be overhead costs that are missed from eye:

So cost per unit: 271 + 200(electrical motor) + 50(raw material) + 50(overhead costs) = $571

3.6 Typical fixed cost for an order:

Costs above were computed for the full time production of the facility. Yearly 800 machines is

a rationally small number for demand. So we expect that every machine produced will be

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sold. So the facility will work full time and there will not be any additional fixed cost for any

order.

3.7 Break- even point:

We plan to sell a machine on the average of $1000. $1000 is a generally plausible price for

this market. This price choice is good enough for our sales purposes. Complete analysis of

this choice is included in section 5 of this report.

Typical unit cost was computed as $571 in above section. So:

Net Revenue per unit: 1000 571 = $429

We expect to sell 800 machines per year on the average.

Net Yearly revenue: 429 * 800 = $343200

Facility set-up cost: $769000

Breakeven point: 769000 / 343200 = 2.24 years

So we will amortize our investment after 2.24 years. 2.24 years is the breakeven point.

Here is the graph for the break-even point:

0

200000

400000

600000

800000

1000000

1200000

0 1 2 3

profit

investment

4. Manufacturing Decisions under Various Scenarios

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B1

A1-B1

The most important factors to determine the optimal process are variety and volume. If

we want to produce many products in low volume, the suitable type of production is job

flow. If we will be produce a unique machine, and if the quantity is one this time the suitable

type of production is project. If we want to produce several products and moderate volume,

batch process type is suitable and if we want to produce a low variety of products in large

volumes, the most suitable production type is assembly line process. Continuous flow

process has similar characteristics to assembly line process about these issues.

A2-B1

If the demand is one at each time not flexible- and unique project process is

suitable. If the demand variance is high job flow process is ok. If the demand variability is

moderate batch flow is suitable type. If the demand variability is low and quantity is high

assembly line or continuous flow according to type of the material produced.

A3-B1

If the demand variability in the market is high job shop is the most suitable. If it is

moderate batch process and if it is low assembly line process is suitable. If the demand

variability is very high then the project process is suitable.

A4-B1

If the products size is high, the bigger area and volume will be needed for the factory.

In addition, if high capital investment is needed, assembly line may be suitable. If capital

investment is low but labor skill is needed highly, then project process is more suitable and a

bigger place in m2 and m3 may be needed. If capital investment is low and labor skill and

number is highly needed, job flow a moderate place may be needed in terms of m2 and m3 .

We can say that if we need a big plant to make production, a place in an industrial area

become more suitable than a place which is within the city.

A5-B1

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If the product has various characteristics a project process may be suitable to achieve

all of the parts of the product successfully. However, if the volume of the product have to be

more than one, than job flow or batch flow process types can be suitable.

A6-B1

Because of the geographical reasons like closure of the raw material, the factory may

be planted near to raw material. If there is a high raw material need, assembly line and

continuous flow may be suitable. If the climatic condition causes lack of transportation of the

product, than project process or job shop may be suitable because there is one unit or a

few unit of products that makes easier to transportation.

A7-B1

If the labor content and skill is high, than project and job flow necessities can be

satisfied. If labor content and skill is low batch process and assembly line necessities can

be satisfied. If the labor content is very low with skilled overseers, continuous flow

requirements can be required.

A8-B1

If capital investment is very low, project process is suitable. If capital investment is

low, Job shop process is suitable. If it is moderate, batch flow is suitable. For the assembly

line capital investment high and for the continuous flow process capital investment is very

high.

A9-B1

There is no direct effect of global warming on the type of the process. However, if

there will be restrictions on production volume because of emission and current type is

assembly line process, than job flow or batch flow can be suitable types.

A10-B1

If there is an economic crisis occurs due to earthquake, the limitation of the

production may become reasonable. Just in time or other order based systems can be used and

project process and

job flow process are feasible production systems. Also, replant of the plant to a safe placemay become an possible solution to keep the production system.

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A11-B1

If an economic crisis occurs due to possible regional wars that our country may be

involved, the separation of the production in different countries becomes a feasible idea. If the

separation occurs and because of the economic crises, the demand may dramatically fall.

There will be a drop in the volume of production and job flow and project processes

became applicable.

A12-B1

An economic crisis may occur because of geographical disasters, sudden corruption of

the government or worldwide crises such as mortgage. Each of them possibly causes

reduction in the production volume and may result with the same situation that we

investigated at A10. However, if there is a worldwide crisis, replenishment do not work but

reduction in production volume is still applicable by the job flow or project processes.

A13-B1

A significant change in Dollar and Euro, changes the cost of the production. If the

production cost decreases, the price of the product will decrease and according to demand

batch flow and assembly line processes are applicable to increase production volume.

However, if the prices increase, then there will be a reduction in the demand and the volume

of the production may be decrease. Hence, job flow process system can be applicable.

A14-B1

Strike because of displeasure of workers:

If such a situation occurs and a usual thing in the country, the logical way of doing

production in a way that not highly depend on workers such as assembly line or continues

flow.

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B2

Raw materials and/or subcomponents used in manufacturing the product

A1-B2

If there is an increase in the production volume, the need for raw materials or

subcomponents will be increased too because they are directly correlated. Also, if the variety

of the products will be increased, again there will be increase in the necessity of raw materials

and/or subcomponents and maybe new raw materials and/or subcomponents will be needed.

A2-B2

If the demand increase, the need for raw materials or subcomponents will be increased

to raise the production volume because they are directly correlated. Similarly, if demand

variance is high, some forecasting techniques should be used such as Winters forecasting

method. If a satisfactory condition occupied, the usage of raw materials and/or

subcomponents will keep at a regular level.

A3-B2

If the demand of the product increases for all the players of the market, demand of raw

materials and/or subcomponents increases because each player may increase its demand on

raw materials and/or subcomponents. If the demand variance of product increases, demand

variance of raw materials and/or subcomponents will also increase.

A4-B2

If the number of players increases in the market, probably the demand for raw

materials and/or subcomponents will be increase. Hence, the price of raw materials and/or

subcomponents may raise.

A5-B2

If the manufacturing capacity of the plant is high and if it uses this capacity, there will

be high demand for raw materials and/or subcomponents and probably will need a big areaand space. Moreover, if the factory is close to a big city, it will try to get raw materials and/or

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subcomponents from close places to this city but if the transportation cost of raw mateiral is

higher than the transportation of the product, probably the factory will be established close to

raw materials and/or subcomponents source.

A6-B2

If the product has various characteristics, there will be a demand for various

subcomponents or raw materials to satisfy the each character of the product.

A7-B2

Geographical conditions may affect the usage of raw materials. If it is very hard to

reach the raw material, the firm will probably save some on the inventory. Similarly, if

climatic condition make hard to transport the raw materials and/or subcomponents, raw

materials and/or subcomponents can be hold in inventory.

A8-B2

If the number of workers is high, than the amount of mining of the raw material

probably be high.

A9-B2

If the capital availability is high, raw materials and/or subcomponents can be bought in

higher amounts and higher quality.

A10-B2

Some materials may be diminishing because of global warming and the reasons of

global warming like O3.

A11-B2

An economic crisis due to earthquake may cause the reduction in the production and

this situation cause a reduction in the demand for raw materials and/or subcomponents.

Conversely, if the economic situation of the country is wealthy, an earthquake may increase

the demand for some raw materials and/or subcomponents to reestablish the lost

establishment. If a company gets the raw materials from different countries, a regional war

may not stop the functioning of the factory.

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A12-B2

Similar to economic crisis due to earthquake, a regional war may cause the reduction

in the production and this situation cause a reduction in the demand for raw materials and/or

subcomponents. However, if a company gets the raw materials from different countries, a

regional war may not stop the functioning of the factory.

A13-B2

An economic crisis probably decrease production and this cause to a reduction in the

demand for raw materials and/or subcomponents.

A14-B2

Strike because of displeasure of workers:

If a strike occurs, the mining of the raw materials may stop and the transportation of

these materials to the factories may stop.

B3

Selected layout for the manufacturing facility

If the production volume is high and a serial production system is used, product based

layout is logical. However, if a machine is produced like drilling machine, process based

layout is applicable as mentioned in the previous part.

A1-B3

If production volume is very high, the product layout system may become suitable but

if it has big variability then the product layout system is more applicable.

A2-B3

If the demand characteristic for the companys product increases, there will be an

increase in the different kind of operations for each machine. Hence, process based layout

system will be needed. If these characteristics have a big variability, again process based

system is more applicable.

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A3-B3

If the demand characteristics in the market increase by all players, there will be a need

for the usage of different production systems and this cause to apply process based layout

system. Increasing variability reflects similar properties.

A4-B3

A very big location both in area and volume may be a necessity for product based

system and for a machine like drilling, this is not reasonable. Process layout system is

applicable even the factory has big physical capacity and does not depend on the location of

the factory.

A5-B3

The various product characteristic need various applications such as milling, forging

etc. and process layout system is reasonable to apply all different applications for the each

characters need.

A6-B3

Although geographical and climatic conditions do not an important effect on the

production system layout, the lack of transportation may push the layout system into process

based system because there is not a serial manufacturing if we compare to product based

system.

A7-B3

The workers and their skills are more important for process based system. If there is

lack of workers availability product based system is more appropriate.

A8-B3

The product based system needs high capital investment. In contrast to product based

system, process layout system is more appropriate if the capital availability problem.

A9-B3

Product based system cause more emissions and if there are law that restricts

emissions, process based system will be more applicable.

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A10-B3

If there is an economic crisis due to an earthquake, the demand will probably fall the

products and process based system become more applicable.

A11-B3

If an economic crisis due to regional war occurs, the demand will probably fall the

products and process based system become more applicable and selling product into different

regions is a reasonable idea.

A12-B3

If an economic crisis occurs, the demand will probably fall the products and process

based system become more applicable and selling product into different regions is a

reasonable idea.

A13-B3

If dollar and Euro increases and import is needed to be supplied, profit margin will

decrease and process based system is more applicable. If dollar and Euro decreases and

import is needed for the production, profit margin will increase and production capacity may

tend to be increased. The reasons for that is the value rate of YTL against Dollar and Euro.

A14-B3

If a strike occurs, process based system has not a big chance to be continue but by the

product based system the production may continue.

B4

Supplier selection for equipment

A1-B4

If the production volume increases and if we do not have a machine which is notcapable to adjustable to produce in large quantities, a new machine may be needed. For this

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reason, the supplier should be selected according to possible production volumes. Also, if

there is a high production variability, the machine may not be suitable and some parts of it

may breakdown and there will be a need for new equipment to change the defected parts. For

this reason, a supplier which has capable machine and provide support should be selected.

A2-B4

If demand increases, there may be a need for new machines or/and additional units

which has to be bought from a machine supplier. If the demand variety increases, the supplier

may hold inventory for the machine it supplied. If the supplier is not capable to do that, more

than one supplier can be selected to supply the needs of the factory.

A3-B4

If the demand of all the player increases, the supplier needs to increase its production

to response in a short term. If this is not applicable, for different equipments different

suppliers should be selected. If the variety of demand changes in the market by all of the

players, a supplier should be selected which has strong R&D department and serve to

different needs of the market.

A4-B4

If the location of the factory is close to the city a supplier should be selected which is

located close to city and deliver orders in a short time. Similarly, if the location of the factory

is in the organized industrial region, a supplier should be selected which is located close to

region and deliver orders in a short time. The physical capability of the supplier such as m2

and m3 should be enough to serve the demands from it.

A5-B4

If the various product characteristics are needed, more than one supplier should be

selected to satisfy all needed characteristics of products. The reason is the idea of each

supplier may specialize on different characteristics.

A6-B4

If geographical conditions of the supplier makes harder to make transportation, a

supplier which is close to us should be selected because maybe a sudden breakdown occurand we need new equipments. If this is not applicable, maybe we can stock some important

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equipment which has bigger probability of breakdown. Similar situations are valid for the

climatic conditions.

A7-B4

If we do not have enough worker a more technological machine may be supplied if

there is skilled workers or if the supplier can educate some of the workers to function the

machine. If we have enough workers but not skilled workers, the supplier can supply a

machine which is ease to use and control.

A8-B4

If we have capital availability, probably there wont be a problem between the factory

and the supplier. However, if we have capital problem, a supplier should be selected which

makes same agreements about payments.

A9-B4

If global warming cause different climatic situation rather than regular features of that

climate, a supplier should be selected which can adjust it to new conditions. Moreover,

different suppliers can be selected in the world which is in different regions.

A10-B4

If an economic crisis occurs due to an earthquake, a factory may not supply its

requirement from a factory in an earthquake area. For this reason, different suppliers from

different regions can be selected to take a precaution.

A11-B4

If a regional war occurs, making production in different places is a logical idea.

Similarly, different suppliers should be selected in different regions to get the requirements on

time.

A12-B4

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If an economic crisis occurs, probably the cash gain big importance and if a factory

does not have enough cash, a factory should make an agreement about payment type that

allows to factory to delay the debit.

A13-B4

If there is a significant decrease in dollar and euro, the value of Turkish money will

increase ad this makes to export harder. If you have a foreign supplier, this may cause same

disagreements about payment. For this reason, local and foreign supplier should be selected to

decrease the effect of sudden change of dollar and Euro.

A14-B14

If there is a strike in the factory, there should be a delay about supplies. If a supplier

has a strike, different suppliers should be selected from different regions to decrease the

effect.

B5

Supplier selection for raw materials

A1-B5

If the production volume increase, the need for raw material will increase and supplier

have to be capable of doing that. If one supplier is not enough to get needed amount, more

than one supplier should be selected.

A2-B5

If the demand increases for the product, the demand for raw material also increases

because they are directly related. Similarly, if the variability of the demand increases for the

product, the demand variability for raw material also increases.

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A3-B5

If the demand increases by all the players in the industry, the demand for raw materials

will increase. Similarly , if the variety of demands increases, variety increases but probably it

will be less than the variability of one company.

A4-B5

If the factory is close to city, the supplier may be selected from close to factory. Also,

if the factory does not have enough places to hold inventory, the supplier should be selected

that have a big inventory both in m2 and m3.

A5-B5

If the manufacturing facility produces products that have different characteristics,

different raw materials may be needed and a supplier should be selected to supply these kinds

of materials or different suppliers can be selected to satisfy all characteristics.

A6-B5

If geographical conditions of the supplier makes harder to make transportation, a

supplier which is close to us should be selected because maybe there will not be enough space

to hold inventory. If this is not applicable different suppliers should be selected because if one

of them will not reach, the other supplier may deliver the raw materials. Similar situations are

valid for the climatic conditions.

A7-B5

If we do not have enough worker the supplier of the raw material has not something

much to do. If a supplier has not enough workers, a different supplier may be use to keep

production.

A8-B5

If we have capital availability, probably there wont be a problem between the factory

and the supplier. However, if we have capital problem, a supplier should be selected whichmakes same agreements about payments.

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A9-B5

If global warming cause different climatic situation rather than regular features of that

climate, a supplier should be selected which can adjust it to new conditions. For example, for

a orange juice producer, the supplier of the oranges shuld be awere of when he will deliver the

oranges. Moreover, different suppliers can be selected in the world which is in different

regions to decrease problem rate.

A10-B5

If an economic crisis occurs due to an earthquake, a factory may not supply its

requirement from a factory in an earthquake area. For this reason, different suppliers from

different regions can be selected to take a precaution.

A11-B5

If a regional war occurs, making production in different places is a logical idea.

Similarly, different suppliers should be selected in different regions to get the requirements on

time.

A12-B5

If an economic crisis occurs, probably the cash gain big importance and if a factory

does not have enough cash, a factory should make an agreement about payment type that

allows to factory to delay the debit.

A13-B5

If there is a significant decrease in dollar and euro, the value of Turkish money will

increase ad this makes to export harder. If you have a foreign supplier, this may cause same

disagreements about payment. For this reason, local and foreign supplier should be selected to

decrease the effect of sudden change of dollar and Euro.

A14-B5

If there is a strike in the factory, the supplier should be a delay about supplies. If a

supplier has a strike, different suppliers should be selected from different regions to decreasethe effect.

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B6

Fixed costs for establishing the production facility

Fixed cost may occur due to the cost of opening a facility or establishing a facility.

This cost includes the cost of machines will be bought, cost of the land to establish the factory

and the cost of opening the facility each time. The establishing cost of the facility is sunk

cost in economic terms.

A1-B6

If the production volume increases, new machine may will be needed and this

increases the fixed cost. If a new facility has to be open, this also increases the fixed costs. If

the demand variability is high, maybe we need an expensive machine which is adjustable to

produce different amount in a fixed production time. This may increase the fixed costs.

A2-B6

If the demand is high, a bigger facility should be established and this causes higher

fixed costs while establishing the facility that is more than the fixed costs of opening a smaller

facility. If the demand variability for the product is high, a facility may be needed to answer

even the highest level of the demand. For this reason, it can be said that, if demand variability

is high, the fixed cost probably becomes higher than the situation that the demand variability

is low.

A3-B6

If the demand of all the players in the market for products increases, new facilities

may need to be opened and this increases fixed costs. However, if some firms which makes

establishments enters the market due to the high demand, it may cause a reduction on the

fixed cost for establishment because of competition.

A4-B6

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If the facility established close to a big city, the land cost of the factory may be high.

Similar situation can be occur, if a factory land is bought in an organized industrial area rather

than using a land far away from the city but these places will provide a reduction in some

costs such as transportation cost. Also, the bigger area of the factory increases the both land

cost and establishment cost and the bigger volume of the factory increases the establishment

costs.

A5-B6

Various product characteristics may achieved by using various machines and this

increases the fixed costs. Also, various steps may be needed in different areas that increases

the fixed costs.

A6-B6

Geographical condition may affect the fixed cost, for example if the land is very rocky,

establishment cost increase. In addition, if the climatic condition cause very cold or rainy

weather, the factory must have the precautions such as isolation that increases the

establishment cost.

A7-B6

If there is no optimality in the number of working people which are establishing, the

establishment cost may increase.

A8-B6

If there is lack of capital availability, it may be hard to challenge with establishment

costs. If the company is paying

Project Eryilmaz Karaman

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