ATILIM UNIVERSITY FACULTY OF ENGINEERING DEPARTMENT OF INDUSTRIAL ENGINEERING IE 399 SUMMER PRACTICE REPORT ANADOLU EFES BREWING AND MALT INDUSTRY INC. Submitted by: Bujen Kutlucan Submitted to: Kamil Demirberk Ünlü Ankara/Turkey 2023-2024 Fall Semester ABSTRACT This internship report describes the studies and observations made during the 2023 summer internship at Anadolu Efes Brewing and Malt Industry Inc. Anadolu Efes is a brand that produces a wide variety of beers. In this report, the stages of beer production, departments at Anadolu Efes and their operations, the work study carried out during the internship period and its follow-up, Anadolu Efes's general conditions and productivity over the years are stated, and the importance of industrial engineers in the workplace is explained. i ÖZET Bu staj raporunda Anadolu Efes Malt San. A.Ş. de 2023 yaz stajında yapılan çalışmalar ve gözlemler anlatılmaktadır. Anadolu Efes birçok çeşitlilikte bira üreten bir markadır.Bu raporda bira üretiminin aşamaları Anadolu efesteki departmanlar ve bunların görevleri,staj sürecinde yapılan iş etüdü ve bunu takibi,Anadolu efesin genel prensipleri ve yıllar içerisindeki verimin hesaplanması,endüstri mühendislerinin iş yerindeki yeri ve önemi anlatılmaktadır. ii TABLE OF CONTENTS Page ABSTRACT .................................................................................................................. i ÖZET............................................................................................................................ ii TABLE OF CONTENTS ............................................................................................ iii LIST OF TABLES ...................................................................................................... iv LIST OF FIGURES ..................................................................................................... v 1. INTRODUCTION ................................................................................................ 1 2. GENERAL OVERVIEW OF THE COMPANY.................................................. 4 3. COMPUTERS, SOFTWARE AND IT ................................................................ 7 4. ENGINEERING COST ANALYSIS ................................................................... 8 5. PRODUCTION ENVIRONMENT ...................................................................... 9 6. WORK STUDY .................................................................................................. 10 7. INTERDISCIPLINARY ACTIVITIES AND PROJECT MANAGEMENT .... 13 8. IMPLICATIONS OF INDUSTRIAL ENGINEERING APPLICATIONS........ 14 9. CONCLUSIONS AND RECOMMENDATIONS ............................................. 15 REFERENCES........................................................................................................... 16 APPENDIX A ............................................................................................................ 17 iii LIST OF TABLES Page Table 1. Time Study................................................................................................. 10 Table 2. Efficiency Calculations .............................................................................. 10 Table 3. Keg Line Beer Filling Flow Process Chart ............................................... 11 iv LIST OF FIGURES Page Figure 1. The percentage distribution of the number of employees .......................... 5 Figure 2. Demonstration of the Beer Manufacturing Process ................................. 12 v 1. INTRODUCTION Trade Name and Address of the Organization: Anadolu Efes Brewing and Malt Industry Inc. Fatih Neighborhood, Turgut Özal Boulevard No:48 06980 Kazan/Ankara, Turkey History of the Organization: Anadolu Efes Brewing and Malt Industry Inc. It offers products and services to a consumer base exceeding 300 million with nearly 60 brands in a wide geography consisting of Turkey, Russia, the Commonwealth of Independent States, Central Asia and the Middle East countries. It extends from Anatolia to the world with 21 breweries, 5 malt facilities and 1 hops facility in 6 countries. In this regard, today it is the 5th largest beer producer in Europe and the 15th largest beer producer in the world in terms of sales volume. It has been bringing together our country's most popular beer brands with its consumers since the day it was founded. It started its journey with two breweries in Istanbul and Izmir in 1960, and today it is Turkey's largest brewery with 3 breweries, 2 malt factories, 1 hops processing facility and 18 brands in its portfolio. continues as a beer producer and market leader. While achieving many firsts in developing the beer market and culture, it was the first in Turkey to produce canned beer, low-calorie beer, non-recyclable bottle, 5 liter keg, embossed box, printed box, transparent label, 1 liter bottle, keg box, keg bottle packaging products. has been introduced to consumers many times. The brand continues its investments in line with its excellence strategies and introduces innovations every year. The Parent Organization to which the Business is Affiliated and Existing Facilities: 1 The foundations of Anadolu Group were laid in 1950 by İzzet Özilhan and Kemal Yazıcı. Anadolu Group is a holding company. Founded by Kamil Yazıcı and İzzet Özilhan, the group still belongs to two families. 68% of the group is owned by Yazıcılar Holding and 32% by Özilhan Sınai Yatırım. Areas and operations where Anadolu Group operates; In the beverage industry: Anadolu Efes (Anadolu Efes and Coca Cola) In the retail sector: Migros In the automotive industry: Anadolu Isuzu, Anadolu Landini In the stationery industry: Adel Quick Service Restaurant sector: Anatolian Restaurant Enterprises In addition, social responsibility activities are carried out with Anadolu Foundation, Anadolu Health Center and Anadolu Efes Sports Club to contribute to the society in the fields of education, health and sports. Products Produced By The Company: Anadolu Efes products, which produces and markets beer, malt and nonalcoholic beverages in a wide range of countries consisting of Turkey, Russia, Kazakhstan, Georgia, Ukraine, Moldova, the Commonwealth of Independent States, Europe, Central Asia and the Middle East, are consumed in more than 80 countries in the world. DOMESTIC Efes Pilsen,Efes Özel Seri,Efes Pastörsüz,Efes Malt,Efes Light,Efes Brewmaster,Bomonti Fabrika,Bomonti Filtresiz,Bomonti Red Ale,Bomonti Black FOREIGN Miller Genuine Draft ,Beck’s,Velcopopovicky Kozel,Grolsch,Bud,Corona,Leffe,Hoegaareden 2 The products produced by the company are not limited to the domestic market. According to its investor presentation, Anadolu Efes exports its products to over 70 countries, including Africa, Asia, Europe, North America, and Oceania. in 2010, the export volume of beer from Turkey was 1.6 million hectoliters, which was 13% of the total production volume of 12.4 million hectoliters. The company has the following market shares in its domestic and foreign markets: 52% in Turkey, 30% in Russia, 28% in Ukraine 47% in Kazakhstan 47% in Georgia 63% in Moldova. Some of the constraints that prevent Anadolu Efes to compete with rival companies offering similar products/services in foreign markets are currency volatility, inflation and Competitive pressure and consumer preferences.For example, , Anadolu Efes competes with Turk Tuborg, which has a 48% market share in beer and a strong presence in the ontrade channel. Anadolu Efes needs to adapt to changing consumer preferences and trends, such as health consciousness, and diversification of tastes. The company has a quality assurance system certification. Anadolu Efes has obtained various quality and food safety certifications for its production facilities, such as ISO 9001, ISO 14001, ISO 22000, HACCP, and OHSAS 18001. These certifications demonstrate the company’s commitment to ensuring high standards of quality and safety for its products and processes. The main industrial engineering activities carried out in Anadolu Efes are planning, designing, and optimizing the production processes and systems to ensure efficiency, quality, and safety. Industrial engineers at the factory notice problems during beer production. For example, line disruption due to bottles falling over for any reason or malfunction of machines Identifying and implementing improvement projects to reduce costs, increase productivity, and enhance performance. Industrial engineers eliminates the noticed problems.They also coordinate with the other departments such as quality or logistic. 3 Human Resources Specialist Human Resources Business Partner Administrati ve Affairs Manager Financial Manager Manufacturing Engineer x2 Production Manager Factory director Quality And Assurance Engineer Quality And Assurance Manager OHS And Environmental Manager Occupational Health And Safety Manager Administ irative Assistant Filling Engineer x2 Filling Manager 4 Energy Engineer Electrical Meintenance Engineer Mechanical Meintenanc e Engineer Assistant Affairs Manager Filling And Engineering Manager Logistics Field Manager Logistics Specialist X4 Logistics manager (finished goods warehouse) Logistics Manager Logistics Specialist Logistics manager (Central Warehouse) 2. GENERAL OVERVIEW OF THE COMPANY As can be seen from the organizational chart, this company consists of HR, finance, production, quality, filling and logistics departments. Human Resources: HR is responsible with payroll, administrative duties, and as a liaison between management and employees. Finance Deparment: The department controls the income and expenditure in addition to ensuring effective business running with minimum dearangments. Production Department: This is the process of transforming raw materials, such as malt, hops, water, and yeast, into beer. The production department applies a new generation production technique called +1 RESTING, which allows the beer to rest for an extra day after fermentation to enhance its flavor and aroma Quality Control: This is the process of testing the products at every stage of production to ensure their compliance with the quality standards and specifications. The production department also implements continuous improvement programs to enhance the quality performance Filling: The filling department is responsible for filling the company's different beverage products into packaging such as bottles, cans or kegs. Logistics :This is the process of storing and transporting the products from the production sites to the distribution centers or customers This organization employs 180 blue-collar personnel and 60 white-collar personnel. The percentage distribution of the number of employees is represented in Figure 1 White Collar Figure 1 5 The main inputs of Anadolu Efes Company's production system are malt, hops, yeast . The supply of these inputs to the production system is carried out as follows: Malt: The company supplies approximately 300 thousand tons of barley annually, and 80% of it comes from farmers in Turkey. Barley is sent to malt facilities in Çumra and Afyon, where it is germinated, dried and turned into malt.. Hops: Hops are a plant used to add aroma and bitterness in beer production. In our country's only hops processing facility located in Bilecik Pazaryeri, hops are made ready for use in production. Yeast: The company keeps the yeast it has been using for 50 years under protection both in its yeast bank in Germany and in its private laboratories in Turkey. Yeast is combined with the wort during the fermentation process. The resources required for Anadolu Efes production activities are raw materials (malt,hops,yeast),energy (natural gas,fuel oil etc),production facilites and HR.Some of the resources required for Anadolu Efes production activities can be described as scarce resources. Anadolu Efes scarce resources are water,hops and energy. Although these are the main resources for production, they are also scarce resources.The resources necessary for production activities are land,labor and capital.Land includes the natural resources such as barley, water ,yeast ,hops ,sugar and other ingredients. Labor includes the human effort that is applied to production Capital Anadolu Efes uses its capital resources to improve its production efficiency and innovation. Company layout plan is represented in the Appendix A 6 3. COMPUTERS, SOFTWARE AND IT Software used in the factory: Power BI: Microsoft Power BI is a business analysis service offered by Microsoft. It provides interactive visualizations and business intelligence capabilities for users to create their own reports and dashboards. Power BI provides cloud-based BI (business intelligence) services. Power BI offers a top-down view of company operations, minimizing possible risks. By consolidating data in cloud-based application, Excel or open sources; It offers major features such as interactive dashboards, data analysis and sharing of creative reports with other users. SAP: SAP is one of the world's leading software manufacturers for business process management, developing solutions that facilitate effective data processing and information flow between organizations. SAP software centralizes data management, providing multiple business functions with one accurate view. This helps companies better manage complex business processes by giving employees in different departments easy access to real-time insights across the business. As a result, businesses can streamline workflows, improve operational efficiency, increase productivity, improve customer experiences and ultimately increase profits MES: Production Execution System (MES) is a computer-aided system that collects all methods and tools used in production and is integrated online. MES performs four basic functions: Collects real-time data from the Production Site (e.g. machine stops). It organizes the data and stores it in a central database. It ensures that all data is accessible over the network by including critical data from other information systems where data is stored, such as planning and engineering offices. It receives work orders from ERP, organizes them and transfers them to production units. It also increases efficiency and quality by reacting to incidents simultaneously with detailed planning. MES is to track all movements in production, from raw materials to finished products, with the help of informatics tools. 7 4. ENGINEERING COST ANALYSIS Depreciation Method Of The Company: The company uses the straight-line method of depreciation for its property, plant and equipment, except for some buildings and machinery which are depreciated using the reducing balance method. Inventory System Of The Company: The company uses a hybrid inventory system.This system combines the features of periodic and perpetual inventory systems.A periodic inventory system is a method of accounting for inventory that records the quantity of items in stock at the end of an accounting period. A perpetual inventory system is a method of accounting for inventory that records the quantity of items in stock after every purchase or sale.Anadolu Efes states that it uses a periodic inventory system for its raw materials and a perpetual inventory system for its finished goods. This allows the company to optimize its inventory management and reduce costs. 8 5. PRODUCTION ENVIRONMENT Anadolu Efes uses mass production as its main type of production. Mass production is a method of manufacturing large quantities of standardized products using assembly lines or other efficient means. Mass production allows the company to achieve economies of scale, lower costs, and meet the high demand for its products in different markets Anadolu Efes has a product layout, which arranges the resources needed to produce the product in one line, as per the sequence of operations. For example, the Ankara plant has a dedicated production line for each brand or market, such as Efes Pilsen, Bomonti, Tuborg, etc. This type of layout is suitable for mass production with less job variety. The product layout allows the company plant to achieve high efficiency, quality, and consistency in its output. However, it also has some challenges, such as flexibility, maintenance, and inventory management. Therefore, the company plant needs to have a well-designed and well-managed production system to optimize its performance. Settlement structure suitable for production volume and diversity 9 6. WORK STUDY The study on time study within the scope of work study at Anadolu Efes Ankara Factory was carried out on the kegging line. Table 1 represents the time study. PROCESSING ELEMENTS NO 1 2 OBSERVATIONS PERFORMANCES TRANSACTIONS AND DURATIONS 1 2 3 4 5 6 7 8 9 10 Tavg Tnormal PR Pallet destruction 100 100 100 100 100 100 100 100 100 100 100 322,3 Tobs 330 319 321 328 311 318 314 324 331 327 322,3 Bottle Exterior Washing 3 Bottle Front Inner Washing 4 Bottle Final Internal Washing 5 Bottle Filling 6 Weight Control and Labeling 7 Palletizing PR Tobs 100 100 100 100 100 100 100 100 100 100 100 333,9 340 324 329 332 336 327 329 337 340 345 333,9 PR Tobs 100 100 100 100 100 100 100 100 100 100 100 393,4 401 398 384 402 374 385 399 408 401 382 393,4 PR Tobs PR Tobs 100 100 100 100 100 100 100 100 100 100 100 270,6 273 278 268 254 271 273 267 274 280 268 270,6 100 100 100 100 100 100 100 100 100 100 100 101,7 101 100 103 104 98 100 106 104 99 102 101,7 PR Tobs PR Tobs 100 100 100 100 100 100 100 100 100 100 100 181,5 182 183 179 176 189 186 181 177 182 180 181,5 100 100 100 100 100 100 100 100 100 100 100 108 106 109 114 101 103 109 111 109 112 106 108 TOTAL Shares Total (%) 1711,4/60 =28,5(min) 15% Table1 Performance Indicator 2018 Annual Goal Increase in Annual Bottled 13.7 Beer Production (%) Actual Data in 2018 (First 6 months) 12.9 Performance Indicator 2019 Actual months) 17.6 2019 Annual Goal Increase in Annual Bottled 14.8 Beer Production (%) Table 2 10 Data (First 6 As can be seen from the calculationss in the table 2when we compare the increases in annual bottled beer production compared to 2018-2019, the efficiency increased even more within 1 year due to the greater than expected increase in 2019. The efficiency calculation formulas used in the page 10 are as follows: Labor Efficiency = (Production Quantity)/(Labour Quantity)(unit/person – hour or unit/number of workers) Capital Efficiency =(Production Value)/(Capital Used in Production) Material Efficiency =(Production Quantity)/(Material Quantity)(unit/material quantity or production value/material value) Keg Line Beer Filling Flow Process Chart: OP.NO 1 2 3 4 DESCRIPTION DISTANCE (m) Separating keg from pallet Putting the keg on the line Turning the keg Pressure control 7 External washing Washing with NaOH Acid washing 8 9 Beer refill Weight control 10 Labelling 11 Putting the keg on the pallet Shipping to logistics department Shipment 5 6 12 13 SYMBOLS 20 Table 3 11 Demonstration of the Beer Manufacturing Process is represented in Figure 2. Process 1 Process 2 Process 3 Malt Wort Filtered beer 180 minutes Malt grinding Resting the wort for 15 minutes Kieselguhr filtration Malt Mash 60 minutes cooling PVPP filtration 180 minutes straining Fermentation of wort for 3-5 days at 9-13 C° Excessive filtering Resting at -1 C° for 9-21 days Filling and bottling Filtered beer Pasteurization for bottles at 62°C for 30 seconds Boiling at 90 C° for 60 minutes Obtaining Must Figure 2 12 7. INTERDISCIPLINARY ACTIVITIES AND PROJECT MANAGEMENT Other Disciplines apart from Industrial engineers: In this factory, there are electrical and mechanical engineers as well as industrial engineers. In general, industrial engineers are concerned with the design, planning and optimization of production and production processes. For this purpose, they try to increase the efficiency and quality of complex systems and processes by combining mathematics, physical and social sciences with engineering analysis and design principles. At Anadolu Efest, mechanical engineers deal with the analysis and maintenance of mechanical systems. Mechanical engineers ensure the functionality of machines and equipment by using basic physical knowledge such as heat transfer, fluid mechanics and thermodynamics. Electrical engineers make the necessary calculations and quality controls of the devices in the factory, vehicles and other equipment used in electricity distribution. 13 8. IMPLICATIONS OF INDUSTRIAL ENGINEERING APPLICATIONS Anadolu Efes aims to create a safe and healthy working environment for its employees, suppliers, subcontractors and visitors. Anadolu Efes' principles for this purpose are as follows: • To prevent injuries and deterioration of health by providing a safe and harmonious working environment to its employees. • To raise awareness of employees, suppliers and subcontractors about occupational safety, In the decision-making processes different risks are taken into consideration. Some of the factors that affect the process are level of managment, structure of the problem,interdependence of the problem.Some of the methods that can be used to take different risks into consideration in the decision-making processes in a factory are risk analysis and calculating the expected value.Anadolu Efes has a risk management and mitigation plan that covers various aspects of its operations. Some of the main activities and responsible departments are: Integrated Risk Management: Anadolu Efes has established an Integrated Risk Management System (IRMS) to identify, assess and manage the risks that may affect its strategic objectives. Sustainability: Anadolu Efes has integrated sustainability into its business strategy and operations. Water Management: The company has implemented a “Zero Waste” program in its factories to reduce waste and increase recycling. Anadolu Efes has a change management policy that guides its employees and stakeholders on how to deal with changes in a systematic and effective way. An example of the activities performed during a major change in Anadolu Efes is the merger of its beer operations with SABMiller in 2012. This was a strategic move to create a stronger and more competitive beer business in Turkey, Russia, Central Asia and the Middle East. The activities involved in this change were preparation, implementation and evaluation. In the implementation step Anadolu Efes established a joint venture with SABMiller, called Anadolu Efes Breweries International (AEBI), to manage the merged operations. Anadolu Efes has a policy of equality, diversity and inclusion (ED&I) that applies to all its employees and workers 14 9. CONCLUSIONS AND RECOMMENDATIONS In this summer practice, we were shown how beer production is. The raw materials in beer, the production, packaging and distribution of beer were learned with the help of engineers. The departments and their duties within the company were learned. During this process, industrial engineers at the company were involved in tasks such as performing quality control at every stage of the production line, identifying and eliminating inefficiencies in the production process, performing regular maintenance of the production line, and increasing the efficiency of the equipment on the production line. As industrial engineers, they also work on occupational health and safety issues in breweries. For example, they can focus on issues such as taking the necessary precautions for the safety of workers and improving the working conditions of workers. Problems experienced in bottles can be given as examples of problems in the company. Problems such as breakages, cracks, blemishes and printing errors may occur in the bottles. These problems reduce productivity and cause the company to make losses. This To prevent this, a personnel can be added to control the bottles. Damage to the bottle can be prevented, at least within the factory. While transporting the bottles with a forklift within the factory, driving the forklift at a certain slowness will minimize the damage. Or, by using high-tech machines, it can be determined whether the bottle is problematic. These high-tech machines use a photo system. The photo of the ideal bottle is loaded into the machine from many angles. The photo of the bottle that arrives in the system is taken and if it looks similar to the photo loaded in the machine's memory, the system allows it to continue, otherwise it is removed from the system. In this way, the bottles are removed from the system before reaching the final stage. If it had reached the final stage, it would have had to be disposed of along with the other proper bottles in which it was packaged. 15 REFERENCES Anadolu Efes. [Çevrimiçi].https://anadoluefes.com.tr/67. Anadolu Efes - Vikipedi (wikipedia.org) https://www.clawhammersupply.com/blogs/brewing/beer-ingredients https://www.vectorsolutions.com/resources/blogs/10-daily-workplace-safety-tips-inmanufacturing/ https://www.inorigin.eu/industrial-engineer-roles-and-responsibilities/ https://www.imse.iastate.edu/files/2015/12/Careers-in-Industrial-Engineering.pdf 16 APPENDIX A 17 18
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