Aselsan Staj Raporu

INTRODUCTION
I think it was a great opportunity for me to have completed my I.E. 400 Summer practice at
ASELSAN A.. . As it is being my second summer practice I was very relaxed before I started
my practice. But there were questions in my mind. How would they treat me? Would I be a
handicap for them? Would I have to learn what I ought to all myself? Would I be free enough
to reach all the information I need? Because I heard from my friends who have done their I.E.
300 Summer Practices in ASELSAN that nothing was permitted. With all these questions in
my mind I started my summer practice, but after I have started I saw that all my questions
were of no importance. People were really very friendly, they eagerly helped me in every
trouble I faced, they never prevented me from asking them questions. As ASELSAN produces
electronic products and Electro Static Discharge is a danger to the circuits, I have not the full
freedom to wander around as in my first practice in TEBA ENTE A.S. but with permission and
special clothes I was able to see almost every stage of the production in ASELSAN. The most
difficult part of my practice was finding an IE problem, I asked everybody that could help me
but the proposals was not satisfactory for me, but finally I found the problem and it was very
relaxing for me. In conclusion it was a very interesting and pleasing experience for me to have
completed my I.E. 400 summer practice at ASELSAN A.. .
1. INTRODUCTORY FEATURES
1.1. Industrialized countries, especially in the second half of the 20 th century, not only
improved their technological abilities but also increased their influence drastically on the
whole world, especially in defense industry. Just at the same times, developed countries sold or
gifted weapons, tools, and materials they own but which are useless or spent their lifetimes to
some countries, in order to limit their technological improvement and make the undeveloped
countries dependent on them. Turkey has faced all the difficulties of this truth after the weapon
embargo implied because of the 1974 Cyprus Peace Operation. After this experience
importance of the independence in obtaining the defense systems and providing the military
communication systems is realized, after that by the contributions of the public, Land, Naval,
and Air Forces Foundations were established. Following this, to decrease, moreover, to cease
the foreign dependency of Turkish Armed Forces on communication electronics, on 20
November 1975 ASELSAN Electronic Industries Inc. was founded by Turkish Armed Forces
Foundation.. In its earlier periods ASELSAN began its functions in Ankara Apartment on
Ankara Necatibey Street with a core personnel consisting of five people, but by the
cooperation with the universities a powerful personnel formation was found. On 26 June 1976
Commander of Land Forces Maj.Gen. Namik Kemal Ersun started the construction of the
Macunkoy Facilities. With the completion of first investments Macunkoy Facilities began its
functions on 9 April 1980 with great ceremonies. At the time company owns two facilities
located at Macunkoy and Akyurt. Adressses are:
Macunkoy Facilities: ASELSAN Inc.
Mehmet Akif Ersoy Mah. 16. Cad. No:16
Macunkoy Yenimahalle ANKARA
Tel: (312) 385 19 00
Fax: (312) 354 13 02
e-mail: webmaster@venus.aselsan.com.tr
URL: http://www.aselsan.com.tr
Akyurt Tesisleri: ASELSAN Inc.

PK 30, Etlik 06011 ANKARA
1.2.
SHAREHOLDERS
PARTICIP. SHARE (TL)
Turkish Armed Forces Founda. 2,716,790,815,800
Turkish Police Foundation
46,520,892,000
Prime Min. Privat. Admin.
8,901,090,000
OYAK Insurance
3,775,642,200
Other Shareholders
491,011,560,000
TOTAL
3,267,000,000,000
TABLE 1.1. SHAREHOLDERS OF ASELSAN
PARTICIP. RATE (%)

83.15858
1.42396
0.27245
0.11557
15.02943
100
PARTICIPATIONS
PARTICIP. SHARE
ROKETSAN
225 Billion TL
ASPILSAN
1.5 Billion TL
TULOMSAS
60 Billion TL
ASELSAN-BAKU
500,000 $
TABLE 1.2. PARTICIPATIONS OF ASELSAN
PARTICIP. RATE
15
0.5
5
100
*Tables are taken from 1998 Annual Report

Type of ownership of the company is Joint Stock Company. In order to be a joint stock
company, Turkish Laws state number of shareholders should be at least 5. So 15% of the share of
ASELSAN is distributed by the owner of the company, Turkish Armed Forces Foundation.
1.3. ASELSAN is a high technology, multi product electronics company that designs,
develops, produces, services devices and systems for professional and military applications. For
this reason the sector ASELSAN is in can be stated as professional and military electronics
sector. If the products of the company are stated:
MILITARY PRODUCTS
MILITARY COMMUNICATIONS SYSTEMS & EQUIPMENT
VHF / FM Fixed Frequency Tactical Radio Family
VHF / FM Frequency Hopping Tactical Radio Family
VHF/UHF - AM/FM Air-Ground Frequency Hopping Radios
3
Tactical Area Communications Systems (TACOMS)

Tactical Data Terminals
Tactical HF Receiver
Tactical Packet (TDMA) Radio (ISTAR)
HF-SARP (Secure Adaptive Radio Processor) HF Data Communications System
Data Encryption Equipment
Short Range Soldiers Radio
Personnel Locator System (PLS)
Field Telephone
COMMAND, CONTROL (C2) & AIR DEFENSE SYSTEMS
Command, Control Information Systems
Field Artillery Battery Fire Control Systems
Pedestal Mounted Air Defence System
RADAR & ELECTRONIC WARFARE SYSTEMS
ASKARAD Ground Surveillance and Artillery Fire Adjustment Radar
ARS 2000 Surveillance and Fire Adjustment Radar
Muzzle Velocity Radar (MVR)
Field Artillery Meteorology System
Signal Intelligence (SIGINT) Systems
Communications and Radar Jamming Systems
ELECTRO-OPTIC SYSTEMS & EQUIPMENT
II.Gen. Day and Night Thermal Sight Systems (DNTSS)
Gyroscopic Stabilized II.Gen. Airborn Thermal Imaging System
BAYKUS Thermal Camera System
Thermal Weapon Sights
III.Gen. Night Vision Goggles
4
III.Gen. Night Vision Binoculars

III.Gen. Night Vision Weapon Sight
III.Gen. Night Vision Periscope
Laser Pointers
Laser Range Finders
Laser Designators
Advanced Laser Target Locator
Target Acquisition System
NAVIGATION & GUIDANCE SYSTEMS
Ring Laser Gyroscope (RLG) Inertial Navigation Systems (INS)
GPS Integrated Inertial Navigation Systems (RLG-INS/GPS) (LN-100G)
Guidance Electronic Section of STINGER Missile
PROFESSIONAL PRODUCTS
PROFESSIONAL COMMUNICATIONS SYSTEM
VHF-UHF/FM Hand Held And Vehicular Radio Systems
Wide Area Coverage Digital Radio Communication Systems
Trunked Radio Systems
Taxi Radio Systems
Data Communication Systems
ASELSAN 1919 Mobile Phone
TV and FM Radio Transmitters
Voice, Data and X.25 Packet Encryption Equipment
PROFESSIONAL CONTROL & AUTOMATION SYSTEMS
Motorway Emergency Communications Systems
Motorway Toll Collection Systems
Warning and Alarm Systems
Siren and Public Announce Systems
5
Smart Card Operated Electricity Meter

Railway Transport Systems/Power Drive Units
Pre-Heating Systems for Wagon Cars
Hybrid Microelectronic Circuits
Printed Circuit Boards
In ASELSAN no study on the determination of domestic and foreign market shares have
been done so far, but by a rough forecast ASELSAN provides the 95% of the Turkish Armed
Forces needs, 80% of the Turkish Radio Market, and 5% of the Turkish Cellular Phone Market,
but for the foreign market even a rough estimate cannot be made but it is stated that foreign market
shares are increasing year by year.
Graphs of Cumulative Distribution of Sales can be found in APPENDIX 1.
Some advertising brochures and catalogues can be found in APPENDIX 2.
1.4. As ASELSAN produces military electronic devices, customers of the company can be
stated as military institutions, and thus it can be said to sell its products to end users. As military
products, professional products which are under the category professional control and automation
systems are also sold to end users, but professional products under the category Professional
Communication Systems are sold via retailers, in spite of this if a large party of products is to be
delivered the sale is directly to the end users.
1.5. Industrial Engineers work on very large areas n ASELSAN, but to me they do the job
they are educated for in only Production Planning and Control Department. Major functions
performed by Industrial Engineers in ASELSAN can be listed as follows:
Total Quality Management
Observing Fixed Assets
Material Requirement Planing
Observing the Supports for R&D
Managing MRP II
Education of Customers and Personnel of ASELSAN
Modern Activity Measurements for the Personnel
Modern Costing for Strategic Decisions
Production Planning and Control
Obtaining and Trailing the Patent Rights in ASELSAN
Project Management
Investment and Feasibility Analysis
Preparing Contracts
Preparing and Trailing Proposals
Cost Accounting
Pricing
2. ANALYSIS OF MACRO ASPECTS

2.1.
ELECTRONIC MATERIALS
MILITARY COMMUNICATION SYSTEMS AND EQUIPMENT
BLACK
RADAR AND ELECTRONIC WARFARE SYSTEMS
MECHANIC MATERIALS
COMMAND,CONTROL AND AIR DEFENSE SYSTEMS
MAN POWER
NAVIGATION AND GUIDENCE SYSTEMS
KNOW HOW
ELECTRO OPTIC SYSTEMS AND EQUIPMENT
BOX
PROFESSIONAL CONTROL AND AUTOMATION SYSTEMS

PROFESSIONAL COMUNICATION SYSTEMS
ASELSAN was founded for the mission to meet the defense based electronic systems
FIGURE
BLACK
BOX
REPRESENTATION
OF improvement
THE PRODUCTION
SYSTEM
needs of2.1.
Turkish
Armed
Forces,
however by the fast
it achieved
during the 24
years it far more exceeded this mission and became a company exporting electronic systems to
all over the world, but it must not be misunderstood that ASELSAN changed its mission to
meet all electronic needs of Turkish Armed Forces, the mission for ASELSAN is still to meet
the needs of Turkish Armed Forces with the highest priority.
(1000 $)
1999
(END
1983-1988 1989 199019911992199319941995199619971998 OF
TOTAL
MARCH
)
2,862
147 15 3,024
1
49 217 37 303
107 246 87
441
1,186
148 132 3
16 1,485
PROJECT
Bask Devre Kart

TV Aktarc-Verici
GSM Cep Telefonu
VHF/FM Telsiz Ailesi
Frekans Atl. VHF/UHF
Telsizi
Hava
Yer
752 188 -
VHF/FM Askeri Telsiz Ailesi
47,161
Sentezrl Telsiz Ailesi
114
Trunk Telsiz Ailesi
Sahra Telefonu
143
Elektronik Telefon Sant.
4,626
Veri Terminali
Stinger
V/SHORADS Projesi
MMIC Balama Paketl.Tekn.
ADIM Projesi
Laser Mesafe lme Cihaz
124
6,04 2,33 3,09

6,13
721
9
5
0
9
3,92
481 338 74 396
5
1,38
27
66
39 500
2
1,07
312 198 109 6
4
44 31 61 43
2,99 2,83
18,6 30,2
549
3
7
38 72
3
41 -
Kara Gzetleme Radar
F-16 Uaklar INS Cihaz
60
211
1,09 1,87 1,18 1,37

59
5
6
2
4
1,40 2,33 3,81

703
6
3
7
14,116
25
DNTSS Gndz ve Gece Termal

Gr Sistemi
Frekans Atl.Taktik Tels.Ailesi
-
4,03 1,48 1,25

815 226
7
8
9
1,29
819 601 224
332 456
8
28 131 -
940
544
73,638
9,059
159
159 81
2,397
123 78
13
85
6,624
20,8
23
-
26,4
31
26
18
17,4
66
210
22
-
9,64
6
152
22
-
179
6,399
162,679
362
49
22
663
2,100
26,6
25
477
2,10
0
25
83 55 138
4,89 2,75
644 595 1
516 509 198 563 8
18,097
3
4
G Kayna-Contraves
695
306 104 1,105
OTHER PROJECTS (*)
18
11
7
2
8
12 29 30 27 18
162
11,4 12,3 10,0 21,8 42,8 22,5 34,5 30,4 23,7 16,0
TOTAL
64,128
7,898 297,992
21
65 78 55 54 40 64 43 84 62
(*) Elektronik Eitim Seti, Telefon Kripto Cihaz, Kesintisiz G Kayna, Bilgisayar Denetimli Alarm Sistemleri, Ara
Sireni
Bakm-Onarm, Yedek,Hibrid Devre
7,139
276
TABLE 2.1 EXPORTS ACCORDING TO PROJECTS
(1000 $)
COUNTRY
1983-1988 1989
1990
1991
ABD
546
280
1,401
2,221
Almanya
2,993
2,900
642
Azerbaycan
1999
(END
1992 1993
1994
1995 1996 1997 1998 OF
TOTAL
MARC
H)
16,85
1,184 1,374 59
1,489 3,512 4,080 710
6
163,1
18,64730,277 20,823 26,799 26,48917,5389,646 6,399
53
10,177 34
4,575 1,549 356
521
87
17,29
Belika
Cezayir
49
2,006
6
-
1,122
-
ran
49,663
5,431
4,308
Kbrs
Pakistan
S.Arabistan
Grcistan
zbekistan
Krgzistan
1,826
1,613
31
-
305
1,664
2
-
505
1,956
103
-
OTHER (*)
8,395
741
69
TOTAL
64,128
11,421 12,365
9
1,338
2,006
64,80
3,077 588
39
625
113
4
77
651
226
1
345
562
631
469
691
135
387
860
97
6,813
2,225 407
193
368
109
301
282
7
9,128
1,342 47
49
69
16
15
1,674
215
215
48
133
0.8
57
377
615
677
677
13,41
178
403
25
90
2,212 109
954
239
2
8
297,9
10,078 21,85542,854 22,540 34,564 30,44323,78416,0627,898
92
48
-
17
-
90
-
2
-
4
-
*AVUSTURYA, BANGLADE, HOLLANDA, SVRE, MALEZYA, NJERYA, SUDAN, TUNUS,

RDN, GNEY KORE, NGLTERE, FRANSA, SPANYA, TAYVAN, EK CUMHURYET,
AVUSTRALYA,
GNEY
AFRKA,
TALYA,
KUVEYT,
FLSTN
TABLE 2.2. EXPORTS ACCORDING TO COUNTRIES

As the sector company is in is electronics market and production is made especially on
military products, ASELSAN should continuously change and improve its product spectrum,
of course to change and to improve the product spectrum, a high investment on R&D is a
necessity. Although ASELSAN has reached a R&D expenditures over total sales ratio of 8%,
which is very high for Turkey and which is over world standards, compared to other firms in
the same market as ASELSAN, as ASELSANs total sales is far below its competitors, R&D
expenditures is also below its competitors (not in ratio but in real terms). To give an example:
Compared to ASELSANs 146 billion dollar sales MARCONI ELECTRONICS SYSTEMS
has over 500 billion dollar sales and this means compared to ASELSANS 11.7 billion dollar
R&D expenditures MARCONI ELECTRONIC SYSTEMS has a R&D expenditure of 40
billion dollars if 8% ratio is applied to both of them.
Besides the difficulties faced by all Turkish firms in exporting their products ASELSAN
additionally faces NATOs hindrances. In order to sell its products to countries outside NATO,
it must first ask NATO for permission. Even if the country the products would be exported is a
NATO country, a permission from Turkish Ministry of Defense should be obtained. Of course,
besides these some country based difficulties also exist (for example,
Ex - USSR republics want TSE standard).

As ASELSAN is an electronics production company, most of the raw materials required
are not produced in Turkey. Even if they are produced they are not suitable for high precision
devices produced by ASELSAN which are used in defense of the country by military forces.
For the reasons mentioned most of the raw materials are imported. But still, in order to support
domestic production materials that could be purchased more cheaper from abroad but have
same quality and characteristics are purchased from domestic markets.
Material purchasing steps can be listed as follows:
Material requirements are obtained from MRP.
Specification sheets of these materials are sent to Material Supply Department.
In order to purchase materials from a company it must be an approved vendor of

ASELSAN.
Among the approved vendors, firms from which the materials could be purchased are
selected and cotacted.
ASELSAN imports 96% of the its raw material needs. 45% of the raw material imports are
made from Europe, 30% of the raw material imports are made from USA and the rest is
imported from other countries. Imported materials are composed of 28,000 items. As it would
be impossible to mention all 28,000 items in a practice report, only major materials and
company names would be mentioned, but the list below contains all materials and countries as
general headings.
MATERIALS IMPORTED:
Resistance
Capacitor
Integrated circuit
10
Coil
Diot
Connector
Transformer materials
Fuse
Fuse Cavity
Printed circuit board
COUNTRIES AND FIRMS MATERIALS ARE IMPORTED FROM:
Germany
Netherlands (Phillips, SGS Thompson, Texas Instruments, National)
Integrated
Circuits and Transistors

USA
Antenna, Cavity
Far East (Taiwan, Japan)
Keypad
Europe (Germany, Switzerland (Dupont))

Europe (Germany (Prometa))
Chemicals
Mechanic materials
In ASELSAN, all products and processes are fully certified by international quality
organizations. Below listed are some examples of ASELSAN's certified quality programs and
international standards applied at different processes.
Quality Programs
TS-EN-ISO-900, AQAP-110
Calibration
ISO-10012
Test
MIL-STD-810, MIL-STD-461, MIL-STD-462, IEC-60801-1, MIL-STD-1275
Design/Development
IEEE/EIA-12207
11
Electronic Production
IPC-J-STD-0001B, IPC-A-610B
Printed Circuit Production
IPC-2222, IPC-2221, MIL-PRF-55110, IPC-6012
Hybrid Production
MIS-23666, MIL-STD-883, EIA-IPC-J-STD-001
Night Vision Equipment
MIL-N-49063, MIL-L-49366, MIL-STD-150, MIL-I-49368, MIL-I-49052,
ANSI/ASQC-Z1.4
Engineering Management
MIL-STD-499
General Specifications
MIL-STD-454
Environmental Specifications
MIL-STD-810
EMC Specifications
MIL-STD-461, MIL-STD-462
Incoming Materials
ANSI / ASQC-Z 1.4-1993 GIL-Z EQL
Products which have TSEK Quality Certificates can be found on APPENDIX 3.
2.2.
The Mission Of
ASELSAN is, by following up advanced technology, to meet the electronic product and
system needs of Turkish Armed Forces in the most favorable price-time-quality conditions so as to
12
minimize external dependence, to lead the development of national defense industry, to use this
knowledge accumulation to meet our countrys other electronic system needs, and in export
opportunities, and thus, to obtain continuity and development under all conditions.
The Vision Of
ASELSANIs to be the best of Turkey in its domain by improving the successful status gained
within the country and abroad, and as a
straightforward and a reliable company to obtain
customer satisfaction and the efficient use of the brain power of our country.
Principles
Customer Satisfaction Success lies on total satisfaction of our customers. In this sense, success
is not only that our customers
accept to use our products and services, but also that they
continuously preserve their preference towards us.

Development Of Human Resources
ASELSANs most valuable asset is its people. The maximization of our personnels
individual capabilities and potentials and their contribution to our success depends on their being
trained in the most convenient way, their being informed of the company policies, and their being
provided with an environment where there is good communication between their departments and
the management. Most important of all is to set up a working environment where there is
cooperation and contribution and where work is directed to common objectives. The managers of
ASELSAN will create and provide the continuity of the environment in which the personnels
contribution is encouraged.
Continuous Improvement Of The Processes
ASELSAN employees will make the development of their processes the main element of
their work.
Team Work
The process improvement activities that are directed to meet the
internal and external customers will be carried out through team work.
13
expectations of both
Environment And Public Responsibility

To comply to legal and ethical rules re among the most important principles of ASELSAN.
In all of its activities, ASELSAN will give great importance to its responsibilities both to the
environment and to the public, and will continue to contribute and be the role model for the
public on this subject.
STRATEGICAL OBJECTIVES
General Objectives
To create the environment in which the military and civil electronic product and system
needs of our country will be met by local technology production.
To serve as the main contractor for the major electronic projects of the Turkish Armed
Forces, and to minimize external dependency in this area.
To balance the production between military and professional electronic
thus obtain ASELSANs continuity and development under every
products and
condition.
Under extraordinary conditions, due to the demand of the Turkish Armed
Forces, to
convert all the production capacity to military equipment, thus, provide them with maximum
support..
To provide the necessary potential, to realize the production and to support our Armed
Forces for the topics that ought to be national like electronic warfare, encryption and critical
software.
To realize exportation in high technology products by achieving the level of competitive
capability both in terms of quality and price in international markets.
2.3.
DISTRIBUTION NEEDS FOR THE PRODUCTS:
14
Sales to Turkish Armed Forces constitute the 50% of ASELSANs sales. The most
important reason for the current location (Ankara) of ASELSAN is the fact that Head Office of
General Staff, Land, Air, and Naval Forces are located in Ankara.
AVAILABILITY AND PHYSICAL CHARACTERISTICS OF RAW MATERIALS
Most of the raw materials are imported (96%) and the rest is purchased from OSTIM.
Location of OSTIM in ANKARA makes the current location of ASELSAN very favorable.
LABOR AVAILABILITY AND QUALITY
As ASELSAN produces electronic products it should continuously improve its products.
To continuously improve its products it should give more importance to R&D and it should
have more technical personnel like technicians and engineers. Ankara is one of the most
developed cities in terms of education after the establishment of the Turkish Republic, the
universities and technical schools located in Ankara makes it a rich city in terms of qualified
labor. ASELSANs requirements for qualified labor makes it reasonable to choose Ankara as
the location of the factory.
TRANSPORTATION FACILITIES
Importing 96% of its raw material needs, ASELSAN gives much importance on
transportation. Even though Ankara is not a favorable city as Istanbul or Izmir, other important
factors mentioned here affected the decision to locate the factory in Ankara. Ankaras position
in Turkey is very favorable because of proximity to main highways, railroads, etc.
PROXIMITY TO CUSTOMERS
Location of the most important headquarters of Turkish Armed Force in Ankara is a
powerful effect on the location of the factory.
ENVIRONMENTAL FACTORS
15
In order to prevent corrosion and secure smooth and correct operation of electronic
devices, these devices should be stocked in dry places, besides electrostatic charge may
damage the electronic devices. Ankara being far from sea and consequently moisture and not
having much rain during the year makes it a suitable place to store electronic devices. In
Ankara it does not rain much and consequently there becomes no thunder or flashes, so there is
not much electrostatic charge due to rainy weather in Ankara.
Among all the factors mentioned Distribution Needs for the Products, Labor Availability
and Quality, and Proximity to Suppliers are the most important factors for the selection of the
location of ASELSAN.
2.4.
Investment proposals in ASELSAN is not prepared by top management but
departments themselves, top managements only role in investment proposals is to make the
final judgement, and approve the proposal.
Investment proposals are prepared on November, to help and to guide the departments
before the preparation of the proposals a Budget Preparation Document is published in
accordance with the General Managements principles. In this document, exchange rates and
inflation forecasts, payment and expenditure information take place.
Towards the end of the year, in a 3-4 months period, delivery and cash incomes, material
cash expenses, overhead cash expenses, investment cash expenses, operational cash expenses
(APPENDIX 4), wage expenses, asset and service transactions between groups, personel
position plans, work programme, labor information are budgeted. The budgets declared above
are prepared by groups (directorate and department based budgets are combind to form group
based budgets). Prepared budgets are finally presented to General Management. Towards the
end of February inspection and approval of budgets are completed.
Investments are classified as facilities and mechanic devices, computer hardware,
computer software, office machines, other registered movable property, furniture and fabrics,
mold model apparatus, vehicles, construction work, electrical, water and illumination works,
value adding repairs, rights, land.
16
As mentioned before in ASELSAN there is no specialized department to make investment

proposals or one source like top management where investment proposals are prepared.
Investment proposals are prepared at departmental level, managers at higher levels only deal
with coordination and approval of proposals. Each department is independently responsible for
the preparation of investment proposals concerning their requirements. After the preparation
these proposals are sent to directorates each department is connected. ( In ASELSAN
departments are grouped under directorates to facilitate in budgeting and investment ).
Directorates evaluate the proposals taking into account the budgets prepared by the Board of
Directors (These budgets are prepared by the Board of Directors taking into consideration the
performance and profitability of the department). Inspected proposals are either approved or
sent back to the department to be re-examined and re-prepared not to exceed departments
budget. After the approval of proposals all the contacts with the firms are carried on by Study
Planning Department.
Naturally, for all the Investment Decisions approval of the General Management or Board
of Directors is not required. Who to decide up-to what level is shown on TABLE 2.3.
INVESTMENT INTERVAL
$200,000 and over
$100,000 200,000
$10,000 100, 000
$3,000 10,000
$1,000 3,000
$1,000 and under
APPROVAL GIVEN BY
Board of Directors
President, Chairman of Board of Directors
Presidential Levels
Vice - Presidential Levels
Related Purchasing Department
Related Administrative Affairs Department
TABLE 2.3. APPROVAL LEVEL IN INVESTMENTS

As investment decisions are evaluated at departmental level, in ASELASAN there is no
unique method of evaluation or criteria used to select among several investment alternatives.
Even at departmental level Present Worth, Future Worth, Annual Equivalent Amount, etc.
methods are not used. Production Planning Department Vice president Cemil DEMIR, who I
talked about investments, said that he uses Engineering Economy when he thinks it is
17
necessary, but to him and generally in ASELSAN the most important criterion in selecting
among different investment alternatives are budget limitations and the necessity of
investments, for example among the investment alternatives which serve the same purpose the
one which does not exceed the budget limits, and technically more improved is selected.
To exemplify this years investment plans:
Mechanical Production Department has an investment plan of $500,000, of this $500,000
$300,000 is for CNC lathes, $100,000 is for Scrap Cleaning Workbench, $100,000 is for
Eccentric Press Workbench.
Below is an example of evaluation procedure used in selecting among different investment
alternatives. In the example Coordinate Measuring Machine (CMM) and CNC machine are
compared. Values provided below are only estimations.
CMM COORDINATE MEASURING MACHINE:
Initial Cost of the Machine: $250,000
Initial Cost of Air Conditioning System and CMM Room: ($120,000 / 2)*
Annual Income: $70,000
Annual Operating Costs of Air Conditioning System and CMM Room: ($1,000 / 2)*
Salvage Value: $70,000
Economic Life: 5 years
(*These facilities are shared with another project so all costs and expenditures are shared)
CNC MACHINE:
Initial Cost of the Machine: $100,000
Initial Cost of CNC Room: $5,000
Annual Income: $2,000
Salvage Value: $30,000
Economic Life: 5 years
Equivalent Uniform Annual Worth (EUAW) Method will be used to evaluate two
alternatives. Minimum Attractive Rate of Return (MARR) for the CNC machine is 10% and
18
MARR for the CMM is 5%. CMM has a lower MARR than CNC, because CMM is
technologically much more preferable to CNC Machine.
FOR CNC MACHINE:
Annual Worth = -(100,000 + 5,000)*(A\P, 10%, 5) + 25,000 2,000 + 30,000*(A\F, 10%, 5)
= - 27,699 + 4,914 + 23,000
= $215
FOR CMM:
Annual Worth = -(250,000 + 60,000)*(A\P, 5%, 5) + (70,000 5,000 500)
+ 70,000*(A\F, 5%, 5)
= -71,598 + 12,667 + 64,500
= $5,569
As a result CMM was selected. If 10% MARR was applied to CMM its annual worth
would be $-5,812 . If this were the case CNC would be selected but technological properties
dominated in the selection procedure.
2.5. It is impossible to skip technological aspects, R&D studies and project management
when writing a project report on ASELSAN which is pioneering the technological
development in Turkey.
In its earlier times, when starting its functions ASELSAN obtained its know how from
Phillips, later with the know how and technology it obtained from other firms and
technology created inside ASELSAN, ASELSAN came to its current position.
To give some examples on the licenses, know how, and technologies obtained from other
firms:
Cellular Phone : TTP license (United Kingdom)
Enemy Identification Systems : Rightone know how
Stinger Missiles : General Electric know how
Pilot Survival Systems : Tadiran ( Israel )
Radios : Phillips license ( Netherlands )
Radar Devices : Alcatel license
19
Of course, obtaining licenses and know how of important technologies imposes

limitations on ASELSAN. Owners of the license or know how have the right to put
limitations by the laws, for example; TTP where the know how of the software of cellular
phones are obtained puts the limitation that ASELSAN would pay TTP if it decides to sell its
Cellular Phones in Europe.
For all the reasons explained above, ASELSAN gives great importance to R&D studies to
form its own know how and technology, and set using the young and intelligent capacity in
universities as one of its principles. At the time ASELSAN has caught up with the world
standards in R&D expenditures. R&D Expenditures over Total Sales Ratio in ASELSAN is
8%, besides R&D studies in ASELSAN is the source of 50% of the products of ASELSAN.
In ASELSAN R&D Department is responsible for the Project Management activities
continuity, R&D Department is subdivided into 3 groups each of which is specialized in one of
Communications Division areas. Specialization areas of these 3 groups can be stated as
follows: Professional Communication Systems, Military Communication Systems and
Electronics Design. When a project is being carried out, from these subgroups a team the head
of which is from the subgroup owning the project is formed. The head of the team is also the
technical director of the project and is responsible for the best organization of the subgroups.
Another director, selected from the department but having the same status as the head of the
team, is responsible from production, marketing and other administrative activities.
CPM and PERT analysis, WBS, Gantt Charts, LP formulations, Crashing Algorithms are
some of the tools that are used in Project Management.
Below is an example of the usage of CPM in the installation of Coordinate Measuring
Machine (CMM);
This project examines and schedules the stepa in purchasing and installation of CMM in
Mechanical Production Department. Following table lists the activities and their predecessors.
Duration of each activity is taken as deterministic as determination of duration under least
favorable conditions is hard and would not reflect the reality. This can be easily explained as;
installation of each machine differs and department staff is not so experienced in this field to
20
provide reliable duration under least favorable conditions or duration under most favorable
conditions.
Activity
Description
Duration
Predecessors
A
B
C
Deciding on machine vendor

Shipment duration
Storing machine till technical vendors
(days)
30
30
45
A
B
D
E
F
personnel arrives
Machine acceptance tests
Machine final assembly
Training the related department engineer
2
2
7
C, J, L
D
E
G
H
I
about the machine

Trial usage period
Technician trainee
Deciding the supplier of air conditioning
15
21
60
F
G
A
machine
Shipment and assembly of air conditioning
30
K
L
machine
Designing the room
Constructing the room
15
45
A
K
TABLE 2.4. ACTIVITIES AND PREDECESSORS
5
J
L
21
10
11
FIGURE 2.2. NETWORK FLOW DIAGRAM FOR CMM PROJECT

ET ( 1 ) = 0
LT ( 1 ) = 167
ET ( 2 ) = 30
LT ( 2 ) = 146
ET ( 3 ) = 60
LT ( 3 ) = 131
ET ( 4 ) = MAX (105, 120, 90) = 120
LT ( 4 ) = 124
ET ( 5 ) = 90
LT ( 5 ) = 122
ET ( 6 ) = 75
LT ( 6 ) = 120
ET ( 7 ) = 122
LT ( 7 ) = 75
ET ( 8 ) = 124
LT ( 8 ) = 105
ET ( 9 ) = 131
LT ( 9 ) = 90
ET ( 10 ) = 146
LT ( 10 ) = MIN (30, 45, 60) = 30
ET ( 11 ) = 167
LT ( 11 ) = 0
TF ( 1,2 ) = 0
* ET ( I ) : Earliest Event Time for Node I
TF ( 2,5 ) = 0
LT ( I ) : Latest Event Time for Node I
TF ( 2,6 ) = 30
TF ( I, J ) : Total Float between Nodes I and J
TF ( 2,3 ) = 15
TF ( I, J ) = LT ( J ) ET ( I )
TF ( 5,4 ) = 0
TF ( 6,4 ) = 30
TF ( 3,4 ) = 15
22
TF ( 4,7 ) = 0
TF ( 7,8 ) = 0
TF ( 8,9 ) = 0
TF ( 9,10 ) = 0
TF ( 10,11 ) = 0
The activities with a total float of zero are critical activities, then the critical path is :
AIJDEFGH
3. AN OVERVIEW OF THE PRODUCTION SYSTEM

3.1. A production system takes inputs and transforms them into outputs, this transformation
process is in fact a flow of materials and information and thus production is the flow of
materials and information. To understand the production system of a company, flow of
materials and information within the company should be deeply examined but as I had only 6
weeks in ASELSAN I had the chance to examine only some part of the production system,
below is the process charts of Double Sided Printed Circuit Boards and Vehicle Radio.
DOUBLE SIDED PRINTED CURCUIT BOARD WORK FLOW:

1. Work order is opened
CAM Station + Studio
2. From the gerber files that has come from documentation necessary panelizations are
done. This panel films, drilling and router information is transferred to production.
3. After the control of films they are sent to fotoresist department for production.
Drilling Section
4. Drilling programmes prepared in CAM Station are installed on the machines drilling
23
will be done.
-
Pin holes are drilled
Hole quality is controlled continuously during drilling operation.
Inside Hole Covering

5. Brushing is done to clean oxides and oil on the boards that have come to inside hole
covering step.
6. Copper is covered inside the holes.
7. Boards that have come from covering are brushed on fotoresist, and then laminated to
print pattern films on.
Control
8. Boards that have come from develop are controlled via the 10% sampling method. If
desired outcome is not obtained 100% control is done.
Sn-Pb Covering Line
9. Sn-Pb covering of the boards are done at this stage. Cu free places on the boards are
covered with Sn-Pb.
10. All the pattern is controlled and if necessary corrections are made.
Film Peeling
11. Areas not covered with Sn-Pb (covered with film) on the boards that have come from
pattern covering are peeled by passing the board through KOH / NaOH solution.
12. Repairs are made on Sn-Pb covered areas before sending to tearing.
Cu Tearing
13. Cu covered areas are torn and pattern is obtained.
Chemical Cleaning
14. Chemical cleaning is done for complete cleaning of the board surface.
Re-flow
15. Boards that have left the chemical cleaning bath are passed through flux and re-
24
To the chassis; pasting

nuts, fastening power and
speaker connector, contact
springs, front panel nuts
A Group Tests and Operating
melted in a temperature range of 230-280 C, by this way Sn-Pb covered lines on the board
YES
Defected?
BoardofTest
completely becomes an alloy. After this step
solder mask is posed to the surface
the/ Repair
To the upper cover; fastening
of contact spring, gromet
board
rubber.
To the lower cover; fastening
of conductor nut, contact
spring, gromet rubber
and board becomes ready.
NO
Final Cutting
YES
Sample device?
16. Boards are cut with numerical control or turret machines according to their final cutting
information.
To the device; assembly of

K1,K2,K3 boards, fastening
cables, fastening front panel
and revision control. 17. In
Bx tests
Final Control
this step 100% controls of the boards are finished. If possible necessary repairs are
made otherwise boards are rejected.

Defected?
Bare Board Test
Painting of the device and

final assembly.
NO
18. After final control step boards are tested on bare board test device for unseen electrical
YES
defects.
General Control
Settings and pre-controls of

the device.
19. Boards
Increase
sample?
NO
NO
are again sent to factory general control ( Product Quality Department ) to be
YES
100% controlled. After this step boards are ready to be mounted by electrical
elements.
Increase the sample
Defected?
YES
Board Test
Fastening of the front panel
and Repair
FIGURE
3.1. VEHICLE RADIO
window
FLOW CHART
Packaging and in
-production inspection
- 25 C test
0
Defected?
Repair
Defected?
YES
YES
100%
sample
final
control
YES
NO
NO
NO
+ 55 C test
Defected?
25
NO
Radio
worked?
Delivery
YES
NO
3.2. To complete the production requirements obtained from MRP on time depends on the
accuracy of capacity calculations in ASELSAN. Labor hours is selected as the capacity
measure since ASELSAN produces highly specialized products and produces sometimes to
customer specifications. Although after the forecasts are entered to MANMAN, the required
capacity to complete all the requirements obtained from MRP seems lacking most of the time,
ASELSANs having no trouble in delivery dates is a powerful proof that capacity calculations
26
are used very effectively in ASELSAN. What prevents late deliveries is the fact that capacity
may be exceeded when necessary by transferring labor from other departments or by overtime.
The usual procedure in calculating the capacity is:
From the designed capacity (maximum capacity that could be obtained in ideal conditions)
effective capacity (capacity that can be utilized in reality) is calculated, and from this effective
capacity, taking into account the utilized capacity in previous periods, rated capacity is
calculated.
But in ASELSAN this usual procedure is a little bit changed (actually shifted). Capacity
calculations in ASELSAN can be explained by the above procedure but by substituting
designed capacity by effective capacity, but the method used will be put forward by the
authors own words:
Two kinds of capacity calculations are being carried out in ASELSAN:
1. For past dates
2. For future dates
1.For Past Dates: This calculation is done for each department separately and the
department with the highest rated capacity is awarded. Aim of this capacity calculation is to
encourage departments to use their capacities more effectively and efficiently. First the total
capacity is calculated;
Total Capacity = Number of Workers in the Department * Daily Working Hours (8 hrs)
Then, from this total capacity vacations, free times (vacations taken by the workers, and the
times when there are no work orders to finish), and other unproductive times (meetings
managers participated, etc.) are subtracted, and utilized capacity is calculated;
Utilized capacity = Total Capacity (Vacations + Free Times + other unproductive times)
And, finally the rated capacity is calculated;
Rated Capacity = Utilized Capacity / Total Capacity
2. For Future Dates: Same calculations explained above are repeated, but this time the
inputs are not the realized values but only forecasts of future, and this time the aim is not to
encourage the departments to use their capacities effectively and efficiently but to take
necessary precautions to deliver orders on time by calculating the capacity that would be
27
needed to complete the requirements obtained from MRP. When the calculations are done for
the purposes described above, labor hours becomes useless as a measure of capacity. Instead,
labor hours are converted to number of workers with a conversion factor of 1/8 (for example if
16 labor hours are needed to complete a work order this is converted to 16/8 = 2 workers).
3.3. As in all organizations, in ASELSAN it is impossible to see a unique production
system. Even in Communications Division of ASELSAN it is impossible to put production
system in one category. Instead it would be more meaningful to divide ASELSAN into smaller
parts of same production system and examine production systems separately.
First of all it is possible to see all production system categories in ASELSAN; even though
the production of the cellular phones is stopped after a little while I started my practice, as I
saw in the first a few days of my practice there was a typical flow shop system in cellular
phone production. Product (cellular phone) is standard, no changes according to customer
specifications is possible, production is made in large lots and stored (just the contrary of what
ASELSAN is used to), all these properties mentioned makes the production system of cellular
phones organized as a flow shop. A small assembly line is established in the factory.
Unchanging sequence and repetitiveness of operations made this assembly line work properly.
All the properties mentioned above shows a flow shop system.
In mechanical production department job shop system can easily be observed, As the
demands of the products produced in this department are very law, production is carried on in
small lots. Department is responsible for the production of over 1,000 different items and all
these items may have different characteristics within themselves. Machines are grouped
according to their functions because of different routings of products. Production of items that
have differing characteristics, variety in routings of items, grouping of machines according to
their functions, production in small lots are the factors that bring to mind the job shop
production system.
It is possible to observe batch shop in radio production in Production Department. Radio is
not a standard product, it has different models such as hand, back, etc, besides some changes
are possible due to customer requests, that is a variety in products exist (not as much as in the
mechanic production department), but this variety does not prevent production to be organized
28
to follow a determined routing with repetitive operations. Products follow the same way
during production, tools are grouped with respect to their usage, necessary variety is applied
by the skilled workers. All these properties lead us to batch shop production system.
Even project shop system can be observed at ASELSAN. ASELSAN provides the repeater
web required to maintain continuous communication between radios (repeaters are transmitter
devices used to communicate with radios between far locations). Repeaters are constructed at
high elevations after the inspections of the engineers of ASELSAN. This construction process
is a typical project shop activity, same with repeater construction, motorway toll collection
systems are constructed at a specified place with all the labor, tools and devices brought to the
construction area.
As mentioned above except continuous processes all production systems could be observed
in ASELSAN. If we are to examine production system from a different perspective
(MTS,MTO, ATO), again all categories could be seen in ASELSAN.
In the production of cellular phones and radios the production system is Make to Stock
(MTS). Production is made and the products are stored then when the demands from
customers arrive, deliveries are made from stocks.
In the production of military products like radars, production system is observed to be
Make to Order (MTO), because it is unreasonable to produce and store a product like radar
which is extremely expensive and not demanded by ordinary people, instead when a demand
of these products arrives production begins from scrap.
ASELSAN provides the after sales repair services itself, for this reason it should stock
spare parts to assure immediate satisfaction of the customer. As it is very time consuming to
begin production from scrap in these situations, spare parts are put to inventory and used
whenever needed. That is parts are assembled whenever needed, so in the departments
providing after sales services in ASELSAN, Assembly to Order system (ATO) is observed
3.4.
A block plan of ASELSAN can be found in APPENDIX 5.
3.5. The fact that ASELSAN is a large company producing a wide variety of products, and
consequently, the usage of very different production systems led to the implementation of
29
different layout types in each department. As for Production System, for the layout type it is
possible to see all categories.
As mentioned before the production system of cellular phones was a typical flow shop. For
the flow shop production system the most suitable layout type is the product layout where all
the machines are grouped according to their functions.
In the radio production batch shop which is a hybrid between flow shop and job shop could
be observed, of course for this production system the layout is cellular layout which is also a
hybrid between process layout and product layout, as it must have been. For the production of
radios cells consisting of tables are arranged, in each table different operations are carried on,
for example in a table where all adhesives are grouped, speakers, monitor and chassis are
assembled. That is a typical cellular layout is easily observed.
Fixed position layout could be observed not inside ASELSAN but at the places where
ASELSAN is constructing Repeaters (transmitter devices) and Motorway Toll Collecting
Systems. In Mechanical Production Department Process Layout can easily be seen. As
mentioned in the description of job shop system in ASELSAN, production of low demand
products, production in small lots, variety in products are the main factors that affected the
layout of the Mechanical Production System.
All types of layout, without any exceptions, could be observed in ASELSAN and they are
all described above.
3.6.
30
FIGURE 3.3. A DETAILED LAYOUT OF THE GROUND FLOOR

Parts labeled EMM2 and TEST ONARIM2 on the figure above are cells of radio
production department. As stated before, in radio production cellular layout type is observed,
and the figure above clearly represents this fact. Radio production department is divided into 3
cells doing different tasks.
3.7. Standard costs (Fixed costs) are used to determine the sales prices of the major products
that are to be sold. To reach at the cost of the final product, material, labor, overhead, and outside
processing costs are calculated for each item used in the production of the final product.
Below cost elements used in calculating unit manufacturing costs in ASELSAN is given:
Material cost
Lower level material overhead cost
Lower level direct labor cost
Lower level variable overhead cost
Lower level outside processing cost

31
Lower level outside overhead processing cost
This level material burden factor

Burden Factoris calculated by dividing the general manufacturing expenses in that
years budget by labor cost for each department.
EXAMPLE: For a cost center if the general manufacturing expenses in the budget is
$7/hour, direct labor cost is $10/hour, then;
Burden Factor: 7/10 = 0.7
This level direct labor cost
This level variable overhead cost
This level outside processing cost
This level outside processing burden factor
Purchase cost
*(Lower level and this level are used concerning a Bill of Materials Structure)
COST ROLL-UP:
In ManMan/MFG, for each product, manufacturing costs are calculated by adding the
manufacturing costs of the items that are at lower levels in the Bill of Materials of that product.
COST ROLL-UP ACCORDING TO SOURCE CODE:
E (EXPENSED) source coded items: They are not taken into account in Cost roll- up
calculations.
B, P (BUY and PURCHASE) source coded items: Purchase cost (material cost) and
purchase cost overhead (this level material burden factor), are transferred to the upper level.
M (MAKE) source coded items: Material, material overhead, labor, fixed overhead,
outside processing cost, outside processing overhead, are transferred to the upper level.
32
F (FLOOR STOCK) source coded items: Material, material overhead, labor, fixed
overhead, outside processing cost, outside processing overhead, are transferred to the upper
level.
R (ROUTABLE) source coded items: Material, material overhead, labor, fixed overhead,
X (PHANTOM) source coded items: Material, material overhead, labor, fixed overhead,
A-1
A-2
A-3
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-11
current cost:14.00
current lower level material overhead cost: 25.63
current lower level direct labor cost: 2.44
current lower level fixed overhead cost: 1.51
current lower level variable overhead cost: 1.24
current lower level outside processing cost: 0
current lower level outside processing overhead cost: 0
current this level material burden factor: 0.75
current this level direct labor cost: 8.75
current this level fixed overhead cost: 7.43
current this level variable overhead cost: 7.43
F-1
current material
cost: 3.00
F-2
D-1
D-2
current purchase price: 11.00

F-3
F-4
F-5
F-6
current lower level

material
overhead cost: 3.58
current this level
material
burden factor: 0.75
current this level
direct labor
cost: 2.44
current this level
fixed overhead cost: 1.51
current this level
variable overhead cost: 1.24
33
H-1
H-2

I-1
I-2

FIGURE 3.2. AN EXAMPLE FOR THE CURRENT COST ROLL-UP
COST CALCULATIONS FOR THE SEMI-PRODUCT F:

F-1= H-1
I-1
34
1.00
2.00
F-2= (H-1
H-2) + (I-1 x I-2)
(1.00
0.98) +(2.00 x 1.3)
= 3.00
= 3.58
COST CALCULATIONS FOR PRODUCT A:
A-1= F-1
D-1
3.00
11.00= 14.00
A-2= F-2
[(D-1 x D2) + (F-1 x F-3)]
3.58
[(11.00 x 1.8)+(3.00 x 0.75)]
= 25.63
A-3= F-4
= 2.44
A-4= F-5
= 1.51
A-5= F-6
= 1.24
35
3.8. Balance sheets and income statements of the last two years can be found in
APPENDIX 6. Below is comparative ratio analysis done by using the balance sheets and
income statements in APPENDIX 6.
LIQUIDITY RATIOS:
WORKING CAPITAL = CURRENT ASSETS CURRENT LIABILITIES
= 24,485,999 19,809,988 = 4,676,011 (for 1997)
= 45,202,062 27,565,052 = 17,497,150 (for 1998)
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES
= 24,485,999 / 19,809,988 = 1.24 (for 1997)
= 45,202,062 / 27,565,052 = 1.64 (for 1998)
INVENTORY TURNOVER = COST OF GOODS SOLD / AVERAGE INVENTORY
= 27,346,663 / 21,783,885 = 1.255 (for 1998)
INVENTORY AGE = 365 / INVENTORY TURNOVER
= 365 / 1.255 = 292 days (for 1998)
SOLVENCY RATIOS:
STOCKHOLDERS EQUITY / TOTAL LIABILITIES
= 12,653,422 / 37,548,587 = 0.337 (for 1997)
= 22,754,882 / 66,727,112 = 0.341 (for 1998)
STOCKHOLDERS EQUITY / LONG TERM LIABILITIES
= 12,653,422 / 5,085,177 = 2.488 (for 1997)
= 22,754,882 / 16,407,178 = 1.386 (for 1998)
PROFITABILITY RATIOS:
PROFIT MARGIN = NET INCOME / NET SALES
= 2,300,575 / 26,202,177 = 0.088 (for 1997)
= 3,586,052 / 45,488,626 = 0.079 (for 1998)
NET SALES / AVERAGE TOTAL SALES
= 45,488,626 / 17,293,819 = 2.63 (for 1998)
36
RETURN ON EQUITY = NET PROFIT FOR THE YEAR / TOTAL EQUITY

= 2,300,575 / 12,653,422 = 0.18 (for 1997)
= 3,586,052 / 22,751,882 = 0.16 (for 1998)
DIVIDEND PER SHARE = TOTAL DIVIDEND / CAPITAL
= 762,300 / 2,178,000 = 0.35 (for 1997)
= 490,000 / 3,267,000 = 0.15 (for 1998)
RATIOS
LIQUIDITY RATIOS:
WORKING CAPITAL
CURRENT RATIO
INVENTORY TURNOVER
INVENTORY AGE
SOLVENCY RATIOS:
STOCKHOLDERS EQUITY / TOTAL LIABILITIES
STOCKHOLDERS EQUITY / LONG TERM LIABILITIES
PROFITABILITY RATIOS:
PROFIT MARGIN
NET SALES / AVERAGE TOTAL SALES
RETURN ON EQUITY RATIO
DIVIDENT PER SHARE RATIO
FOR 1997
FOR 1998
4,676,011
17,497,150
1.236
NA
NA
1.64
1.255
291days
0.337
2.488
0.341
1.386
0.088
NA
0.18
0.35
0.079
2.63
0.16
0.15
TABLE 3.1. FINANCIAL RATIOS FOR 1997 AND 1998

(*All figures provided above are in million TL unless otherwise stated)
Working capital is a safety cushion to creditors. A greater balance is required when the
entity has difficulty borrowing on short notice. ASELSAN had a working capital of 4,676,011
(x million TL) in 1997 and 17,497,150 (x million TL) in 1998. The increase in working capital
both in nominal and in real (inflation rate considered) terms is a favorable sign.
37
Current ratio is used to measure the ability of an enterprise to meet its current liabilities out
of current assets. ASELSANs current ratio was 1.236 in 1997 and 1.64 in 1998which is a
favorable sign.
As no data about 1996 is available, average inventory for 1997 cannot be calculated
(beginning inventory is not known), and thus inventory turnover and inventory age figures for
1998 are not adequate for a comparison. But if we had the sufficient data, an increase in the
ratio may indicate the poor sales for some products.
Stockholders equity compared to total liabilities is a significant measure of solvency since
a high degree of debt in capital structure may make it difficult for the company to meet interest
charges and principle at maturity. Further, with a high debt position comes the risk of running
out of cash under conditions of adversity. Also excessive debt will result in less financial
flexibility in the sense that it will be difficult to obtain funds during tight money markets. The
ratio for ASELSAN was 0.337 in 1997 and 0.341 in 1998. The ratio remained fairly constant.
A desired ratio depends on many variables, including the ratios other companies in the
industry, the access for further debt financing, and the stability of earnings.
Stockholders equity to long term liabilities ratio for 1997 was 2.488 and for 1998 it was
1.386. Drastical decrease in the ratio but stability in stockholders equity to total liabilities ratio
shows that the firm is reducing its short term debts but increasing its long term debts. This
seems to be a favorable sign.
Profit margin indicates the profitability generated from revenue and hence is an important
operating performance measure. In 1997 the ratio for ASELSAN was 0.088 and in 1998 it was
0.079, the slight decrease in the ratio indicates that the earning power of the business slightly
decreased within a year.
Net sales to average total sales ratio is helpful in appraising a companys ability to
efficiently utilize its asset base in generating revenue. As for inventory, we have not the
sufficient data to make a comparison and the data we have is not reliable as it is in TL (because
of high inflation rate). But the ratio of 2.63 (if considered reliable) means that ASELSAN
makes good use of its assets to make profit.
38
Dividends are the most important things for many stockholders. In 1997 in ASELSAN
dividends per share ratio was 0.35 and in 1998 it was 0.15. this drastical decrease means that
the stockholders will be much less eager to hold their shares.
4. PRODUCTION PLANNING AND CONTROL SYSTEM

4.1. Forecasting, when used in the determination of future demand figures, is a basic
element of Management Decision Making, providing important information for the planning
of Production System.
Forecasting is done in ASELSAN by the means of qualitative techniques rather than
quantitative ones. Although some quantitative figures and calculations are used in forecasting,
the real important thing in forecasting is the experience and intuitions of the forecaster.
Roughly, with an overall look, forecasting is done by the Marketing Directorate and
forecasts are used by the Production Directorate in the Communications Division of
ASELSAN.
COMMUNICATIONS
DIVISION
PRODUCTION
DIRECTORATE
FORECAST
MARKETING
DIRECTORATE
FIGURE 4.1. FORECASTING IN COMMUNICATIONS DIVISION
From a conversation with Mr. Fatih, from the MPS (Master Production Scheduling)
Department, where all the statistical calculations for forecasting is done, it is realized that the
need for forecasting arises from the fact that lead times are not zero. For all the companies
39
worldwide need for forecasting arises from the need for time to production, delivery and
control activities (that is lead time).
As customers of ASELSAN are State Organizations as Turkish Armed Forces and Public
Organizations, demand of each year depends on the budget government reserves to these
organizations thus on government politics. Marketing personnel contacts with these
organizations towards the end of the year as the budgets are realized usually in December, and
try to learn about their needs and guesses about the budgets they will have. Combining the
information about the sales and budgets of these organizations with the experience and
presentiments of the forecasters, a forecast is prepared. Marketing and Sales Department
receives reports including the forecast data of the Sales Personnel from the Regional
Directorates. MPS Department combines these with the sales data of the previous years, and
prepares the forecasts for each product. Although no predetermined and unique method is used
in forecasting, MPS Department is responsible for all the statistical calculations. After the sales
are realized both personnel based and product based forecast accuracy measures are calculated,
these calculations usually depend on the ratio of:
Forecasted Sales Quantity / Real Sales Quantity
Ratios close to 1 are considered good forecasts.
In ASELSAN it is not possible to see a smooth demand pattern (see APPENDIX 7 for sales
figures according to years). As mentioned before products of ASELSAN are not products with
wide markets, but products which are demanded by only a few organizations like Turkish
Armed Forces, and all these makes forecasting a hard job in ASELSAN.
4.2. Board of directors decide what and how much to produce. Information gathered from
the customers are reported to the Board of Directors after the feasibility and producability
studies are made, Board of Directors decide to produce or not the new product the customer
demand. A completely different example to this is cellular phones, to increase the reputation of
ASELSAN, to prove that Turkey can produce his own cellular phone the proposal to produce
cellular phones presented to the Board of Directors is accepted and the production of Cellular
Phones began in ASELSAN.
40
How much to produce is also decided by the Board of Directors. After the forecasting steps
explained before, production quantities determined are presented to the Board of Directors and
production begins after the approval.
CNC Lathes in the Mechanical Production Department are considered as scarce resources
in ASELSAN. It seems impossible to meet all the production requirements on these machines.
The security considerations (for the defense of Turkey) prevents the subcontracting of the
products produced on these machines. In the allocation of jobs to these machines cost, time
losses, utilization rate etc. are not the main things to consider, they are in the second place,
what is important and in the first place in the allocation of jobs to these machines is the secrecy
level of the products. Products which are secret in terms of country defense and technology
theft are always allocated to these CNC machines, no other factor is considered in this
decision. Other jobs which do not have any security privileges are subcontracted to free some
capacity on the CNC machines for the security possessing jobs, no matter how expensive it
would be. If the production requirement for the secret jobs exceed the total CNC Machine
capacity, even a new machine is considered to be bought, but usually if there is no emergency
of the order, late delivery option is selected.
There is no need to review the plans on some periodic basis because there is just one plan:
always produce the product having secrecy, if the product does not have secrecy then produce
it in case there is free capacity on CNC machines otherwise subcontract and there is no need
to review this plan. Also for the same reasons there is no need for a measurement of the extent
to which the concerns are fulfilled because they must always be 100% fulfilled.
4.3. There are three types of inventories in the Communications Division: Raw Materials
Inventory, SMD (Surface Mounting Device) Inventory, and SMD WIP Inventory. If we are to
give some examples to the items in these inventories:
41
Raw Materials Inventory:

ELECTRONIC:
Resistance
Capacitor
Integrated Circuit
Coil
Diot
Connector
Transformer Materials
Fuse
Fuse Cavity
Printed Circuit Board
MECHANIC:
Washer
Bolt
Nut
Rivet
Gasket
Pipe
Wick
Cover
Cupboard
SMD INVENTORY
Assembly Resistance
42
Assembly Capacitor
Assembly Integrated Circuits
Assembly Transistors
Assembly Diot
Assembly Coil
Assembly Pot
Assembly Other Electronic Devices
Raw Materials Inventory is located at the ground floor, and large items are stored in it,
production requirements of the upper floor are satisfied by the Raw Materials Inventory in the
ground floor. WIP inventories created are stored on the shelves in the Production Department.
SMD Inventory consists of arrays of trays called KARDEX mounted inside a wall and
controlled via a computer. The material requested is brought to you by a robot arm, controlled
by a computer, from the tray the material is stored. In this inventory small devices used in
SMD machine are stored in reels. SMD WIP Inventory also consists of KARDEX but a
different model. Different from the KARDEX in SMD Inventory, a robot arm is not used,
instead all trays are turned by a chain system and the material requested is brought to you
inside its tray. In this inventory materials retrieved from SMD Inventory by the Production
Department is stored.
The reasons why raw materials are kept in inventories can be stated as: preventing stockouts, long lead times, to decrease inflation effects, to decrease the effects of exchange rate
changes. Hybrid boards are typical examples of partially completed goods inventory. These
hybrid boards, which are used in more than one product are produced over the demand and
stored, this way production requirements are smoothed. The reasons why partially completed
goods inventories are kept are smoothing production requirements and preventing stock-outs.
Another inventory type is finished goods inventory. This kind of inventory covers all the
products of ASELSAN and is kept for on time delivery, delivery of unanticipated demands,
etc.
43
As ASELSAN provides after sales services too, it is unavoidable to hold spare parts
inventories. These type of inventories are held to assure customer satisfaction.
Of these inventories, if we are to examine a component in SMD Inventory: SMD 1K
0.125W resistance is one of the components held in SMD Inventory. This component can be
purchased in pan sizes of 5,000 (they are purchased in reels of 5,000) and lead time of this
component is 98 days (80 days (production + delivery) + 18 days customs delay). If there
becomes a requirement which is not a multiple the pan-size (5,000) it is not possible to start
the production with the exact number requested. For example, if you have a requirement of
2,000, you have to order one reel, that is 5,000 components, that means storage of 3,000 excess
components, otherwise you would not be able to produce. Even if there existed no pan-size
limitations, lead time of 98 days would make it obligatory to hold excess inventories.
At first, the method used in inventory control in ASELSAN was periodic review. At the
end of each year review results were reported to the Accounting Department and necessary
changes in records were made accordingly.
With the installation of MANMAN Information System, inventory control policies have
changed. An inventory control method depending on the A-B-C analysis was selected because
of the need for A-B-C coded system in MANMAN. By this method, to each part a code
(A,B,C,D,F,) is given, according to the A-B-C analysis. In the implementation of A-B-C
analysis, value of the part, difficulty in obtaining, lead time, difficulty in stocking were
considered. According to this system A coded parts were reviewed once in 2 days, B coded
parts were reviewed once in 5 days, C coded parts were reviewed once in 10 days, D coded
parts were reviewed once in 20 days and F coded parts were reviewed once in 120 days. Now
the periodic review method described above is also given up By the natural consequence of the
newly implemented bar-coded material retrieving system and with the convenience it brought,
continuous review system is used. In this system material retrieved from the inventory with a
bar-code reader is automatically dropped from the records by the computer system.
But a new alternative is proposed for the inventory review system, in the new proposed
system, which is supposed to be a hybrid between A-B-C coded periodic review system and
now used continuous review system. Materials will be reviewed not only when they have a
44
movement from the warehouse (continuous review) but also due to the A-B-C codes in times
when they do not have a movement (periodic review). For example, if an A coded item does
not enter or leave the warehouse in 2 days after it is reviewed, automatically it will be
reviewed.
(Feasibility studies of the newly proposed system was done by other interns and me during
my practice. The information and numbers given above are provided by the Production
Planning Department Vice-Manager who is in charge of Raw Materials Inventory, C.Can)
Performance measure used in the warehouses is based on the ratio: moving items over
standard time. Standard times are calculated by Work Study techniques for each activity. That
is, performance measure can be stated in a different way as moving time of 1 unit of item
(review and packaging time are also included in the moving time). Performance measure unit
is min./unit of item and normally on the average it is 25 min./unit.
MANMAN/MFG module includes an MRP II package for MRP applications.
MANMAN/MFGs MRP technique answers the question of what material to order and when
to order it. The technique is used primarily for ordering material for an assembled product,
where demand for the components is directly dependent on the production schedule of the final
assembled product. MRP is a series of mathematical steps that convert a given gross
requirement to a scheduling action. For each part, MRP looks at demands and balances these
demands against quantities on hand, scheduled work orders, build schedules from
MANMAN/REPETITIVE, and purchase orders. MRP reviews projected inventory levels and
when necessary, generates planned orders or reschedule messages for existing orders for the
planning period. MRP checks the parts with order policy code 0, parts that use no order
modifiers and parts with order policy codes 1, parts that can use order modifiers.
Demands on parts are the basis for MRP; they can be dependent or independent. Forecasts,
quotations, and sales orders for an individual part are all considered independent demand by
the system. Supply information is also critical for correct MRP processing. Quantity on hand,
open purchase requisitions and purchase orders, build schedules and open work orders are all
valid sources of supply for the system. Existing supplies are balanced against demands to
determine if any additional supplies are required. These data are gathered from MPS, which
45
tells how much finished product is required and when, an inventory records file which
indicates how much inventory is on hand or on order, and bill of materials, which gives
information about what parts are required and how many are needed.
Relation between master schedule and MRP is not only an input output relationship, but
also it is a check and feedback relationship. MRP needs master schedule as it states which end
items will be produced and when these items are needed. As MRP schedule cannot identify
infeasibilities in master schedule, most of the time a proposed master schedule is used through
MRP processing for checking master schedule and revising it, when needed. Inventory records
file includes information about items such as their scheduled receipts, gross requirements,
inventory on hand amounts, and detailed data about quantity changes in the period (cancelled
orders, inventory receipts and withdrawals). Bill of materials shows structural relationships
among components as they are assembled into the final product. (An example of Bill of
Materials report from MANMAN can be seen in APPENDIX 8.) Components on bill of
materials tell MRP what parts are needed; the relational information tells MRP where parts are
needed, as well as the correct quantities needed by quantity per assembly (QPA) data.
In ASELSAN, MRP is executed in every 2 weeks, for 2 or 3 times in each execution for
feedback and revision purposes. A complete MRP cycle of MANMAN/MFG consists of 4
major steps explained below:
RELEVELING STEP: MRP process starts with partially re-leveling all bill of materials that
have changed since the last time MRP is regenerated. New level codes for changed bill of
materials are calculated. A level code is a number between 0 and 25 that indicates where a part
fits in the bill of materials structure. Final assembly parts have highest level codes while
purchase or buy parts have level code 0.
DELETING PREVIOUS REQUIREMENTS/GATHERING NEW REQUIREMENTS: System

deletes all the old planned orders and all the old requirements left over from last execution
because MANMAN/MFG uses the regenerative MRP technique, which creates new
requirements and due dates for every part each time firm runs it. System collects all gross
requirements and replenishments for a part and creates an MRP Requirements Record for the
part and stores this information in that record. Then it advances to next part in the Part Record.
46
EXPLOSION OF REQUIREMENTS: A four phase procedure is implemented here. In phase 1

highest level code is searched. In phase 2, net supply and demand is calculated for the part
selected. In phase 3, netted supply and demand are stored. In the last phase, next level is
searched until all levels are regenerated.
END OF MRP REGENERATION.

It must be noted that MRP calculates the gross requirements at the top level of the product
structure, nets out the on hand and on order quantities at that level, and uses the results of that
calculations as the gross requirements at the second level for the same part, and so forth. After
MRP regeneration, planned orders are checked against capacity requirements of the
department in ASELSAN. If orders of a top level product are changed after this study planned
orders of all lower level parts become wrong, so that following procedure is implemented.
After first regeneration, related corrections are done to top level items and MRP is executed
starting from second level items. Best way is executing MRP for each level, but because of the
limitations in computing capacity and time considerations 2 or 3 regeneration is done. As a
result, planned orders prepared by MRP is converted to open orders. (An example for the MRP
report from MANMAN can be found in APPENDIX 9.)
4.4. In ASELSAN two types of order forms are prepared; work order form and purchase
order form. Work order forms are prepared for items parts produced in ASELSAN and
purchase order forms are prepared for the parts purchased from other companies, as the names
imply.
Work orders are planned for make and routable parts after the execution of MRP (every 2
weeks). When first planned work orders are called Firm Planned Order. A month before the
scheduled kit date, that is planned production date they are transformed to Scheduled (a month
before the opening of the work order). Before the work order is opened changes are available.
At the due date (scheduled kit date) work order is opened and the Kit Packing List is sent to
the warehouse. After the opening of the work order changes are not available.
47
After these forms are used to retrieve materials from the warehouse, with some changes
and adaptations they are sent to the work centers, this way work centers know what, how much
and when to produce.
As a performance measure of the work orders; the ratio of completed work orders over
opened work orders can be stated.
4.5. With the JIT philosophys coming on the scene, reducing organizational slacks became
the main goal of every organization whether implementing JIT themselves or not. Even though
there is an idea of implementing JIT philosophy in ASELSAN, up to now there is no organized
and focused studies on the subject. No matter how hard you try to reduce organizational slacks
(large inventories, extra allowances for scraps, buffers among machinery, etc.), it is impossible
to implement JIT philosophy and reduce organizational slacks to a minimum in Turkeys
current conditions and especially in ASELSAN which is producing high technology products
using high technology materials. For this reason slacks like yield factor, safety stock etc. exist
in ASELSAN. To give an example; for Resistance 1K47 0.125W 97% yield factor is used and
1,000 of it is kept as safety stock, that is for the possible losses during purchasing 0.03%
allowance is given, when purchased 0.03% of the items are thought to be defected or lost.
Moreover, for the urgent orders or for the possible losses during delivery 1000 Resistance
1K47 1% 0.125W is kept in inventory. It is unavoidable, though tried, in ASELSAN not to
hold organizational slacks, because ASELSAN produces for defense industry and as it is stated
in its mission, in all circumstances it must meet Turkish Armed Forces needs, and in this
situations it is a must to carry organizational slacks.
48
5.
QUALITY PLANNING AND CONTROL SYSTEM

5.1. As ASELSAN is producing military electronic products, in this sector, where a little
fault will kill thousands of innocent people, it considers the quality concept at its highest level,
and assured the quality of its products from the design stage to the usage stage. Customer
desires are always the most important thing for ASELSAN. This philosophy is so well
absorbed that for a non-military product, cellular phone, all the loud speakers are changed for
free in lieu of customer complaints about the ringer tone.
At the design stage, if the product is an innovation, electronic specifications are designated
by the designer, but if the new product is to be subcontracted, specifications are designated by
a consortium formed by ASELSAN. No matter invented or subcontracted, first the quality tests
are done on the prototype, these tests control the product according to MIL standards. If the
new product is not able to pass all the tests, processes are repeated from the start and a new
prototype is created and tested.
A purchased material first goes to Quality Department for its first controls before entering
the raw materials warehouse. To facilitate in the transfer of materials, the First Quality
Department and the Raw Materials Warehouse are located face to face. When received, all
materials are checked whether they are the right ones ordered or not, then their quantities are
checked and finally functionality tests are applied and electronic specifications are controlled.
All incoming materials are counted one by one but not all of them are exposed to electronic
tests. For sampling AQL is used (see TABLE 5.1.). If the part is mechanic, instead of the
electronic tests mechanic test are applied. If the number of defected items in a lot exceed the
acceptance limits, all the lot is rejected and sent back to the vendor due to the agreements
between ASELSAN and the vendor, otherwise the lot is accepted by the Quality Control
Department and transferred to the Warehouse.
If the quality control activities during a products life cycle is to be exemplified: Hand held
radios pass through same stages explained above till final control, the control activities
explained above are more or less same for all products so they are not re-explained here. Final
controls of the radios are done in the Product Quality Department. Devices produced for one
customer or for same work order are assumed to be a lot. All the devices are exposed to eye
49
control and functionality tests are applied. Devices produced in Electronic Production
Department are exposed to electrical tests according to the sampling plan in ( TABLE 5.2.).
LOT
SAMPLE
NUMBER
VOLUME
AQL %1
AQL %4
ACCEPTENC
E
AQL %1
1-10
11-30
31-50
51-90
91-150
151-280
281-500
2
3
4
13
13
50
50
2
3
4
13
20
32
50
0
0
0
0
0
1
1
NUMB
ER
AQL
%4
0
0
0
1
2
3
5
REJECT
NUMBER
AQL %1
AQL %4
1
1
1
1
1
2
2
1
1
1
2
3
4
6
TABLE 5.1. ELECTRONIC TESTS SAMPLING PLAN

If the number of devices in a lot are less than or equal to 10, that lot does not pass through
Environmental Conditions Tests. Otherwise, (if the number of devices in the lot are greater
than or equal to 11) the lot is exposed to Environmental Conditions Tests according to the
sampling plan in TABLE 5.2.
LOT
VOLUME
11-30
31-50
51-90
91-150
151-280
281-500
SAMPLE
NUMBER
4
3
13
20
32
50
T
-25 C
1
1
5
7
12
20
E
+60 C
1
1
5
7
12
20
S
HUM.
1
1
2
3
4
5
T
VIBR.
1
1
3
4
5
ACCEPT
0
0
1
2
3
5
REJECT
1
1
2
3
4
6
TABLE 5.2. ENVIRONMENTAL CONDITIONS TESTS SAMPLING PLAN

The number of defective devices, after the 100% applied tests and sampling tests, are
within the acceptance limits, for the defective devices Final Test Defect Form is prepared.
Defective devices are repaired and re-tested. If the repaired devices pass the test, Product Entry
Forms are signed by the final test technician, these forms are then approved by the Product
Quality Department Manager and the related Production Department is informed. When
50
number of devices are more than the number in reject column of sampling plan tables, decision
is made by asking the opinion of the Product Quality Department Manager.
TESTS APPLIED TO RADIOS IN FINAL QUALITY CONTROL:
1.) Standard Environment Conditions:
Temperature: +15 C - + 35 C
Relative Humidity: 45% - 75%
Before the tests, last calibration dates of the test apparatus and that the environment
conditions are reached are controlled.
2.) Eye Control:
Stock numbers in Product Entry Forms are checked with the stock numbers on the device
labels. Whether there is a mechanical defect , paintings, keys and potentiometers are
checked.
3.) Functionality Tests:
All devices are tested operationally.
4.) Transmitter Tests:
Power Source Voltage: 7.2 V DC
Standard Deviation of the Test: 60% of the maximum deviation.
5.) Receiver Tests:
Power Source Voltage: 7.2 V DC
Nominal AF Output Power: 500 mW (18 ohm load)
Standard Entry Sign: 1 mV rf (carrier frequency), 1kHz sound sign and 60% of
maximum deviation.
6.) Environmental Conditions Tests:
Low Temperature Tests
High Temperature Tests
Humidity Tests
51
Vibration Tests
For the After Sales Quantity Activities again a standard procedure is applied to all devices:
Broken down devices are received at the Device Receiving and an instant report is prepared
according to whether the product is in or outside the guarantee.
Broken down device is repaired and tested by the repairman., then final tests are applied.
Information gathered in the Final Test (automatic test station) is transferred to MANMAN.
By the Product Quality Department, every six months, testing devices are calibrated. There
are 25 Authorized Service Stations connected to Regional Directorates in Istanbul and Izmir,
providing after sales services.
5.2. Universal competition rule of our century is providing customer satisfaction

moreover providing customer loyalty. Success concept of firms shifted from the realization of
only production-sales to high quality, fast, cheap production and customer focused sales.
Global conjuncture makes it necessary to satisfy not only the shareholders but also the benefit
owners. Firms realizing this paradigm adapts the Total Quality Management (TQM)
philosophy which gives more importance to customer satisfaction, collaboration of personnel
and continuous improvement.
TQM APPLICATIONS IN ASELSAN:
1.) CONCURRENT ENGINEERING:
Concurrent engineering (CE) is a systematic approach to coordinated and concurrent
design of products and processes including production/product support.
Before CE applications, serial engineering , which is classical product development
method, was used, that is at the first stages design engineers, at the prototype stage production
engineers and at the last stage Marketing and Sales Department was active. The disadvantages
of this traditional system is stated below:
52
Product development time is long
Costs are realized before production engineers participate in the project (at the
design stage).
Created product may be insufficient to meet customer requirements.
With the CE applications, important gains are achieved in ASELSAN. Product

Development time is reduced , customer requirements and expectations are reflected to
product specifications. Participation of the customer to all processes, including design stage,
actively played the key role in the success of applications.
The improvements achieved through the application of CE studies to 4000 series hand held
radios are stated below.
INDICATOR
Design Time
Number of Modifications for the
4800 (I. GEN)

48 months
725
4000 (II. GEN)

21 months
522
first 4 years
Number of Materials in the Product
572
327
Production Labor Hours
11
4.6
Production Cost
$X
$Y
TABLE 5.3. GAINS OBTAINED BY CONCURRENT ENGINEERING
DIFFERENCE
56%
28%
43%
59%
49%
The data provided above shows that the design and production cycle process times are
reduced, production costs are reduced and a more advanced design is made. Besides, II. Gen
Devices are designed to possess technical properties mentioned below which came to
ASELSAN as customer desires.
Radio dimensions are reduced from 585 cm3 to 407 cm3 , and the weight is reduced
from 435 grams to 310 grams.
Number of channels which is 14 in standard is increased to 99.
Battery capacity is increased.
Besides auditory warnings, visual warning options are included.
Security in secret communications is provided.

53
In the new design many options are independent of the hardware but dependent on the
software.
2.) COLLECTION OF SAME TYPE OF MATERIALS WITH DIFFERENT STOCK

NUMBERS UNDER ONE STOCK NUMBER:
Previous Practice:
ASELSANs products are 50% its own design and 50% from the cooperation and
technology transfers with foreign firms. Consequently, same type of materials are used with
different stock numbers and problems mentioned below appeared.
Following same material for each project separately.
Excess number of materials to be followed.
Because of the different stocking due to different stock numbers of the same material, wasted
space and time loss.
Weakness in price determination.
Material and time loss in inspection.
Stopping of production due to shortage of material originating from different stock numbers.
Studies:
Same type of materials is determined by inspecting MRP II records and material
documents. Materials determined are classified according to their types and frequency of usage
is determined. The materials determined are collected under a new ASELSAN stock number
and new documents are prepared.
Gains:
Gains obtained from A material is below:
This material is used to be followed in 5v different stock numbers. Its price is 38$ and
minimum order quantity is 48 tubes.
COST ITEM
PREVIOUS COST
CURRENT COST
54
DIFFERENCE
Material
14,174$
8,360$
Labor
660$
220$
Overhead
1,417$
836$
Total
16,251$
9,416$
TABLE 5.4 GAINS OBTAINED FROM A MATERIAL
41%
66%
41%
42%
3.) IMPROVEMENT OF THE LABEL PREPARATION PROCEDURE

Previous Practice:
Films for metal labels were prepared, metal serial-stock labels were brought empty and
pasted on the devices after the printing on the low technology Imperial label printing machine,
The fact that these labels are in different dimensions, label planning, stocking in warehouses,
printing and posting work, caused important losses.
Studies:
Acrylic labels printable by laser are started to be used after the studies of Process
Improvement Team.
Gains:
Below, previous and current practice is compared for 500 labels. With the current practice
label preparation time reduced 12 fold.
PREVIOUS
TIME ELAPSED
CURRENT
TIME ELAPSED
PRACTICE
Film Preparation
4 hrs
PRACTICE
Pattern Preparation
hr
55
Serigraphy Preparation
3 hrs
Machine Preparation
1 hr
Metal Cutting
10 hrs
Printing
hr
Printing and Drying
4 hrs
Cutting
2 hrs
TOTAL
23 hrs
TOTAL
2 hrs
TABLE 5.5. GAINS OBTAINED BY IMPROVEMENT OF THE LABEL PREPARATION
6.
MANAGEMENT INFORMATION SYSTEM

6.1. If you consider the transformation from the work shops which produce only for their
environment, with limited variety and quantity to the factories of our time which have a wide
product spectrum and exporting their products, we see that even the decisions made by only
one man (workshop owner) cannot be made by a group of people. This multi-person decision
making mechanism which is a consequence of fast improvement, left the important decisions
to the top level management (owner) as before, and distributed the other decisions to middle
level management. In this respect we can talk about 3 kinds of decisions and their decisionmakers:
Strategic level decisions
Tactical level decisions
Operational level decisions
If we are to examine the decision making mechanism in ASELSAN:
Strategic Level Decisions: Board of directors, general manager and general vicemanager can be stated as strategic level decision makers. Decision of construction of
Akyurt facilities and production of cellular phones were the decisions of board of
directors consisting of 7 members, 1 vice-president and 1 president.
Tactical Level Decisions: Tactical level decision makers are directors and department
managers. As an example of the tactical level decisions made by department managers:
56
Production Planning and Control Department Manager Afsin AKERMAN examines

performance reports every month and takes necessary precautions to increase
performance.
Operational Level Decisions: Operational level decision makers in ASELSAN are

department managers who are also tactical level decision makers and department vicemanagers. Overtime decision for the workers is a typical example of operational level
decisions.
6.2. Computers are widely and effectively used in ASELSAN. ASELSAN has an Ethernet
local network that connects the client computers of ASELSAN. With the usage of fiber optic
lines, Akyurt facility and by using the rental TURPAK X.25 lines, Istanbul and Izmir region
directorates are also connected 'on-line' to the network.
A digital VAX 6510 system was used for 5 years, but with the increase in annual
input/output activities it became obsolete. Now a Digital ALPHA AXP 4100 system is used as
a server in ASELSAN, and nearly 7-fold performance increase compared to old system is
observed. In 1986 there were nearly 15 MANMAN users and the performance coefficient was
1 but nowadays there are 700 users in MEGA and 200 users in ALPHA.
ALPHA AXP 4100 has an ALPHA 21164 processor, which is 300 MHz and has 64 bytes
technology. It currently has a RAM of 1 Gigabyte, which can be upgraded to 4 gigabytes, and
its maximum hard disc capacity is 180 GB.
Server comes with the OpenVMS system, but Windows NT or UNIX can also be used. The
older computers are used for other tasks, which do not need fast computations and high
performance. For on-line connection with Istanbul and Izmir region directorates two Digital
VAX 11/780 are used. Finally, for the library documentation purposes a VAX 8530 server is
used
The network of the HC Division called HC Net, is a 'Local Area Network' (LAN). Its
connection system has two parts: horizontal cabling system and backbone (vertical cabling
system). Horizontal cabling system connects the computers (PC, server, and workstation) in
building to the Cable Distribution Center (KDM). KDM in each building is the main
57
component of the horizontal cabling system. This system has a 'star' cabling connection
structure with 10 Mbit/s transfer speed. It is planned to upgrade the connection so that transfer
speed would be 100 Mbit/s. Backbone connects the KDM of each building to the central
KDM. Indoor and outdoor fiber-optic cables are used for the backbone. Each backbone line
has 4 pairs of multi-mode fiber-optic cable, from which 1 pair is used for HC Net. Two pairs
are for upgrading purposes and the last pair is spare. Speed of the backbone is also 10 Mbit/s.
Four server computers are used for HC Net. These are:
BEGONYA:
Compaq Proliant 1500
Dual 5/133 Processor
32 MB RAM
16 GB (Raid 5) Hard Disc
Used for storing personal accounts and projects
BAHAR:
Compaq Proliant 1500
Dual 5/133 Processor
32 MB RAM
16 GB Hard Disc
Stores and distributes office applications
PAPATYA:
Compaq Proliant 800
Pentium 200 Processor
32 MB RAM
8 GB Hard Disc
Used for Exchange Server
58
MANOLYA:
HP Vectra XM/4
Pentium 75 Processor
32 MB RAM
400 MB Disc
HC-MST-BIM-MGEO Router
MANMAN Information System is extensively used in nearly all areas such as

manufacturing, accounting, personnel and marketing considerations in ASELSAN. MANMAN
system is a composition of modules, each of which can be considered as independent and can
be used separately. However, when needed, data are shared between installed modules
automatically so that a great flexibility and efficiency is achieved. Information about modules
of the MANMAN system:
MANMAN/MFG: It can be considered as the core module of the MANMAN
system. It is an on-line manufacturing management system that is used for the optimization of
inventory investments, planning and controlling priorities and capacities, organizing and
tracking shop floor activities. Additionally it provides a complete cost accounting system.
MANMAN/BARSCAN: It allows inputting information directly into the system
database by passing a wand over a bar code instead of manually typing the information. By the
usage of bar codes data entry becomes faster and more reliable.
MANMAN/DATAPORT: It is a file exchange management system for MANMAN.
It provides an information gateway into the MANMAN system, so that easy connection of
external data collection systems is possible.
DecisionMaker : It provides on-line summaries of a company's manufacturing data
such as inventory value, inventory transactions, purchasing commitments, purchasing

variances, and closed work order variances.
MANMAN/ENGINEER: It allows company to develop and change product
structures and production procedures for existing and new products.

59
MANMAN/Formula Management: It is a through formula management module.
MANMAN/GL: It provides for the collection and reporting of the costs from the
material transaction record (MATREC), and permits the company to map manufacturing
accounts to a maximum of nine general ledger accounts.
MANMAN/OMAR: It is an on-line order management system designed to manage
information (such as customers, sales agents, and products) from the time a quotation or a
sales order is entered until the cash has been received from the customer.
MANMAN/PAYROLL: It is used for storing information about employee and
processing the payrolls.
MANMAN/AP: It is an on-line accounts payable system that manages vendor and
supplier payables. It aims to control the accounts payable process by improving cash flow
management, maximizing discounts taken, reducing billing difficulties, and highlighting
project accountability.
MANMAN/PROJECTS: It allows company to capture actual labour, material and
overhead costs for an activity/cost category combination, and segregate project work by
activity.
MANMAN/REPETITIVE: Meets the high volume, level production needs by
providing alternative methods of production scheduling, material issue, and shop floor control.
MANMAN/SERVICEMAN: It is designed to manage information for companies
that service products. It tracks contracts, customer sites and units from the time service is
required until the problem has been solved.
MANMAN/TRACKER: It is an integrated lot tracking system that provides
comprehensive tractability of a lot's parts from initial receipt through work in process (WIP),
intermediate, subassembly levels to final shipment of finished goods.
In ASELSAN computers are extensively used in official purposes, design and R&D
activities. Windows NT is installed in the personal computers. MS Office Professional package
is used for official purposes. It includes programs such as Word, Excel, PowerPoint and MS
Access. For the CASE (Computer Aided Software Engineering) studies Visual Basic, Corel
Draw and C++ are used. Another program used for official purposes is MS Exchange, which
60
enables communication between clients in HCNet by presenting e-mailing service to them. For
the database applications MS Access and Visual Basic programs are used in addition to the
compiler programs such as VDMS, VAX/DBMS, RDB/BMS.
Especially in the Mechanical Production Department and in the design, R&D studies
special purpose software are used. CAM applications such as SMARTCAM are especially
used in punching machines in Mechanical Production Department. Also in this department
special code languages like G Code and Umess, for CMM (Co-ordinate Measuring Machine),
are used. ACAD and other CAD/CAE software are used in other areas such as applications
related to library, personnel, accounting, and documentation activities.
Network system and the servers and connections used can be seen in detail on the figures
in APPENDIX 10.
6.3. ASELSAN gives much importance on technological improvements and tries to keep
in touch with the latest technology. MANMAN MRP II package is the most important software
used in ASELSAN, other than this ISG software is used to transfer data from the MANMANs
databases to PCs, SQL SERVER 7.0, and ODBC are used as Database Management Systems
in complicated subjects for more straightforward ones and more generally ACCESS is used,
Visual Basic is the programming language mostly used in ASELSAN. During my practice in
ASELSAN, I improved my skills on database management systems using SQL SERVER,
ODBC and ISG, and also my programming skills using VISUAL BASIC. At the time there are
three programs, designed by me, currently in use by different work centers. ASELSAN also
designs its own software, one of the application areas of the softwares designed in ASELSAN
is described below;
MATERIAL RETRIEVAL SOFTWARES USED IN THE WAREHOUSE:
Softwares to Create Necessary Files to Retrieve Materials: These softwares are

developed by FORTRAN programming language operating on ALPHA 4100
mainframe and operates on the same mainframe. These softwares take collective
drawing information from CA-MANMAN and transforms it a convenient format for
barcode reader hand terminals database, Software is developed in ASELSAN.
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Retrieval Planning Software: This software is developed by using Visual Basic

programming language operating under Windows 95 operating system on IBM
compatible PCs and operates on the PC in the Raw Materials Warehouse. This software
is developed due to the client/server technology. This software, by taking material
retrieveing and warehouse personnel data by TCP/IP protocol from the local computer
networks in ASELSAN, provides the necessary distribution of jobs for material
retrieveing and prepares the related files. Software is developed in ASELSAN.
Data Transfer Software: It is a software providing data transfer between IBM

compatible PCs and barcode reader hand terminals in both directions using RS-232
data transfer protocol developed by the producer of barcode reader hand terminals.
This software operates on DOS. Software is developed by the producer firm (Telxon).
Work Order Control and Label Printing Software: This software is developed on
ALPHA 4100 mainframe using FORTRAN programming language and operates on the
same mainframe. It prints the barcoded labels to provide the distribution of retrieved
materials to work orders. Software is developed in ASELSAN.
7.1. Stopwatch predetermined time standards, work sampling etc. are the methods for
measuring work, however none of these methods are used in ASELSAN in determining
standard times. Trying to use one of these techniques would mean dealing with thousands of
different operations because of ASELSANs wide range of products. Also because of possible
deviations from standards in labor intensive processes such as assembly, results of these
techniques may create problems. However, standard times for operations are needed for
MANMAN to work properly, therefore they are provided somehow. The method used in
determining standard times is conducting surveys among the operators. Results of the surveys
are entered as standard time of the operations. As new data is entered to the system standard
times are updated via moving averages method.
Standard time is the sum of:
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Transit Hours: Material handling and delay time from WIP, stocking etc. between the work
centers. It is obtained from part routing reports and expressed as machine hours.
Standard Labor / Machine Run Rate: Production rate for the item in a work center. It is
obtained from part routing reports and expressed as item / hour.
Standard Labor / Machine Set-Up: Set-up time for the work center for each lot produced.
It is obtained from part routing reports.
To convert standard labor / machine run rate into hour spent for a lot, following conversion
factor is needed.
- Average Order Quantity (AOQ): Taken as production lot amount for the parts
manufactured in the firm.
Standard Time per Lot = (Total Transit Hours)
+ (AOQ / (Total Standard Labor / Machine Run Rate))
+ (Total Standard Labor / Machine Set-Up Time)
Standard Time per Product = (Standard Time per Lot) / AOQ
If we are to calculate a sample Standard Time for Master Control Card:
AOQ = 5
Total Transit Hours = 8+0+0+0 = 8 hrs.
Total Standard Labor / Machine Run Rate = 5.56+0+0.75+0+1+0+0.25
= 7.56 items / hour
Total Standard Labor / Machine Set-Up = 1.75+0+1.25+0+1+0+0.5
= 4.5 hrs.
Then; Standard Time per Lot = 8+(5 / 7.56)+4.5
= 13.16 hrs
Standard Time per Part = 13.16 / 5 = 2.63 hrs.
(*Data provided above are taken from Master Control Card s routing report, and Work
Order Operation Status Report which can be found in APPENDIX 11.)
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7.2. Job evaluation is the process of determining the relative worth of each job in terms of
specified criteria. Jobs are classified into classes and each class is further divided into levels.
There are 8 classes and they are given letters A through H. Belonging to each class is
related to the type of the job done, and level of the employee in the class is related to the
educational background, work experience the employee. Class A includes engineering jobs,
and it has 9 levels named A1 to A9. Most of the classes categorize the jobs, which are
independent of levels of the class. Class A categorizes engineering jobs as Chief Engineer,
Project Leader etc. Administrative staff is included in Class B. This class has 8 levels, B1
to B8. Technicians are included in Class C. This class has 5 levels, C1 to C5.
Accountants, secretaries, office staff, workers, part time workers are classified into one of the
remaining classes D, E, F, or H. Class D is subdivided into 5 levels while the
remaining classes are subdivided into 3 levels. Each level increment corresponds to work
experience expressed in years in ASELSAN and they are listed with other criteria in the
ASELSAN Personnel and Wage Directive. Besides, work experience foreign language and
military service completion for men are some criteria in level determination and increments.
There are degrees between 1 and 18 and each degree has 5 levels. The corresponding
coefficient of each degree and its level determines the corresponding wage in ASELSAN.
These coefficients are listed as a table in ASELSAN Personnel and Wage Directive. The
maximum and minimum degrees that can be applied to each class of job are also determined in
the same directive. As an example Class A can get minimum 9/1 and maximum 16/5, and
Class H can get minimum 2/1 and maximum 9/3 as degree. The Payroll Module of
MANMAN System is used for keeping the records that contains information like personnels
class, level, department etc.
ASELSAN was not using wage incentives, but a wage incentive system procedure has
been completed and signed by the board of directors, and being used now. This incentive
system is for getting and keeping the experienced and qualified personnel in ASELSAN. Also
it aims to increase the labor productivity. ASELSAN is aware of the fact that a proper
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incentive system is a very good way of achieving these goals. Growth and change in profit is
used for calculating the incentives. Payments are twice a year to improve the motivation of the
employee.
7.3. The work station selected is the SMD WIP Warehouse. As mentioned before it is a
machine called KARDEX mounted inside the wall of a room. The room is surrounded by three
windows as wall and the ceiling is not covered. The work done in this work station is:
SMD WIP Inventory is used to store the materials requested from the SMD Inventory by
the electronic production department. There are two different operations done in the work
place. These two jobs are similar in context but just the contrary in function. One of them is
putting the requested material into the KARDEX and the other is taking the material from the
KARDEX. To put a material into the KARDEX first you have to read its barcode by the
barcode reader, after this step almost everything is automatic, you see the positions empty in
the KARDEX and the computer shows you the space most appropriate for the material to be
put and the quantity to be put, the operator only puts the material to the place shown. The other
job is to take materials out of the KARDEX, this job is same too. First you read the barcode of
the material you requested and then the quantity barcode by the barcode reader. The computer
shows you the place on the screen and then brings the material just in front of you. The
functions of the work station could be more clearly understood from the two figures provided
in APPENDIX 12. Below is the checklist to evaluate the work station, as will be seen the work
station is designed considering the ergonomic factors.
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ERGONOMICS CHECKLIST
A. Dimensions
1.Has a tall man enough room?
Yes, as the room has no ceiling, and as the ceiling of the factory is beyond the reach of human
stature, there is enough room for a tall man to move comfortably.
2. Can a petite woman reach everything?
Yes, as the data inputting work is done mostly by woman the workstation is also designed for a
woman. A petite woman can reach everything. This can easily be seen in APPENDIX 12.
3. Is the work within normal reach of arm and legs?
Yes, all the work is within normal reach of the arm. Moreover the work is in fact within much less
than the limits of normal reach of the arm. This can easily be seen in APPENDIX 12.
4. Can the worker sit on a good chair?
Yes, during the work sitting is not required but two adjustable good chairs are provided for the
worker to sit. Locations of the chairs and why they are used can be easily understood from
APPENDIX 12.
5. Is an armrest necessary, and (if so) is it a good one?
No armrest is necessary for the work because the duration of the work is not so long.
6. Is a footrest required, and (if so) is it a good one? No footrest is required for the work because
there is no need to sit down while working and even if sat down, as the work duration is
not so long there is no need for a footrest.
7. Is it possible to vary the working posture?
Yes, the nature of work and also the design of the work center makes it possible to change posture
during the work. In fact there is no posture limitation for the work, the work can be done in
whatever posture the worker chooses, even for that reason though not required two chairs
are provided. The workplace does not also limit the posture, this can easily be seen in
APPENDIX 12.
8. Is there sufficient space for knees and feet?
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Yes, as the KARDEX is located inside the wall, if left this way there would be no space available
for knees and feet but by putting a tray 20 cm wide just in front of the KARDEX this
problem is solved. The tray can be seen in APPENDIX 12.
9. Is distance between eyes and work correct?
Yes, the worker stands very close to the work place and it is impossible to make a mistake in that
range for that kind of work.
10. Is the work place for standing work?
Yes, as can be seen in APPENDIX 12 the work is arranged for standing work, but as an option to
standing two chairs are provided for sitting work.
B. Forces
1. Is static work avoided as far as possible? Yes, in fact no force is needed for the work because
the heaviest load in the work is carrying reels of material which requires at most 1 kilogram
force.
2. Are vises, jigs, conveyor belts etc, used wherever possible? Yes, for the placement of the
computer a special belt and jig combination is used, and also inside the KARDEX reels stay
within jigs.
3. Where protracted loading of a muscle is unavoidable, is the muscular strength required less
than 10% of the maximum?
As mentioned before there is no need for an excessive muscular force so this question is not
applicable for the case.
4. Are technical sources of power employed where necessary? Yes, in fact KARDEX is used as
the technical source of power. By the chain system it brings the part requested in front of you
without any need for the worker to exert any power.
5. Has the number of groups of the muscles employed been reduced to the minimum with the aid
of counter support?
As mentioned before, there is no need for excessive force, so there is not the need for a group
of muscles to act together. Only work done by the muscles is a simple carrying operation so
this question is not applicable for the case.
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6. Is torque around the axis of the body avoided as far as possible?

For the reasons explained above this question is not applicable for the case.
7. Is the direction of motion as correct as possible in relation to the amount of force required?
Yes, only the forward and backward motion of the arms are required to fetch the reel from the
KARDEX, and the force required can be ignored so the direction of motion is correct in
relation to the amount of force required.
8. Are loads lifted and carried correctly, and are they not too heavy?
As the loads are very small there is no unique correct way to lift them so they can be said to be
lifted correctly
C. Noise
1. Is noise reduced to the minimum by means of technical measures at the source?
No there is no precautions to reduce noise because the only noise exists when the machine is
working and it is not a disturbing noise as it is located inside the wall and the wall emits most
of the noise.
2. Are the source of noise so insulated they hinder as few as possible?
No, as mentioned before the only source of noise is the KARDEX and it is not disturbing, so
there is no need for insulation.
3. Is the reflected noise reduced to the minimum by provisions on walls and ceilings?
For the reasons explained above the question is not applicable for the case.
4. Are the noisiest apparatus located as far as possible from ears?
Yes, the nosiest apparatus is the motor of KARDEX and it is located inside the wall.
5. Can sound signals and verbal instructions be rapidly distinguished from the ambient noise?
Yes, as there is not much noise present in the environment, sound signals and verbal
instructions can with no difficulty be distinguished.
D. Lighting
1. Is the lighting adequate for the nature of the work?
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Yes, in fact for the work no special illumination is necessary. The location of the reel is shown
by an indicator light and for computer operations the light emitted from the monitor is
adequate but as mentioned before there is no ceiling and illumination is the factorys general
illumination so the illumination is adequate for the work
2. Has the fact that old lamps emit less than new ones been taken into account? For the reasons
explained below this question is not applicable for the workplace of interest but applicable to
the whole factory so it wont be answered.
3. Has glare on account of naked light sources, windows, or their reflection shiny surfaces been
avoided?
Yes, in the direction of the work there is no reflecting surface. This is natural for the KARDEX
as it is located inside a wall but the computer is intentionally located just opposite the
windows.
4. Is reading of meters not impeded by reflection of light sources?
Yes, as mentioned above KARDEX is located inside a wall and the only display or meter to
see is the one showing the tray number. This display is located just above the KARDEX (see
APPENDIX 12) and thus the reflection is avoided.
E. Climate
1. Are the surroundings where the work is done too warm or too cold for the nature of the work?
The nature of work requires no special climate so the factory climate is adequate for the work..
2. Have effective measures to prevent a high radiation temperature been taken?
No, there is no radiation inside the workplace.
3. Can the humidity of the air be kept within the acceptable limits?
Yes, the humidity of ASELSAN must be kept within the acceptable limits because of the high
sensitivity of electronic devices to humidity, and this is not a difficult task in Ankara.
4. Are processes calling for a high degree of humidity insulated to the greatest possible extent?
There is no process around the KARDEX workplace calling for a high degree of humidity, so
this question is not applicable to the case.
5. Are droughts avoided and, at the same time, is there adequate ventilation?
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There is a ventilation and air conditioning system in ASELSAN, air conditioning, as the name
refers prevents both high humidity and drought, and the ventilation is adequate.
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F. Information
1. Is the quantity of information received by the worker adequate and yet confined to essentials?
Yes, the exact location (in two coordinates) of the material requested on the tray is shown by
an indicator light. On the computer screen status and place of the part is shown and on the
display above the KARDEX the tray number can be seen and there is no more information that
could be needed by the operator.
2. Does the information arrive in good time and is it perceived through the right sense?
Yes, the information arrives in time, there are no delays as all operations are computer
controlled and not complicated.
3. Is the information clear and unambiguous?
Yes, there is no ambiguous information. Everything is clear, all the locations are shown and
when the tray comes only one location is indicated so there is nothing for the operator to think
about, everything is straightforward.
4. Is the urgent information given via the ears?
No, no urgent information should be given. For the danger situations there is a security system.
A sensor on the machine stops the machine when there could be harm to people.
5. Particularly in the case of lengthy inspection tasks, is seeing replaced by hearing? No, no
inspection task is necessary.
6. Can sound signals having different meanings be readily distinguished from each other? Yes,
there are no sound signals so this question is not applicable.
7. Can pre-alignment, assembly, and setting be carried out rapidly and efficiently by touch? Yes,
the fixtures used to hold reels in the KARDEX could easily be removed to provide more space.
8. Can the positions of components, control knobs, control buttons, and tools be perceived by
touch? Yes, the manual control on the KARDEX can be perceived by touch but human
judgement is eliminated from the system. A barcode reader does all the job. The barcode of the
material requested is read to the sensor, then a number barcode is read to indicate the quantity.
After the computer shows all locations and brings the tray automatically.
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G. Displays
1. Can the meter be read quickly and correctly, according to a measure immediately suitable for
use and with the required accuracy? Yes, there are no meters used but the display over the
KARDEX can easily be read.
2. Is the desired degree of accuracy really necessary? This question is not applicable to the case
because exact accuracy is required. The material requested must be brought, not another one.
3. Is the type of meter selected efficient?
There are no meters so this question is not applicable.
4. Is the scale graduated properly and as simply as possible?
There is not a meter scale in the work place but there is a sale showing the location of the reel
in the tray. There are two scales, one is horizontal and the other vertical. The two scales are
graduated properly to show exact location of the reel.
5. Are the letters, figures, and graduate marks clearly be visible at the required range? Yes,
required range is very close so the graduate marks can easily be seen.
6. . Is the pointer simple and distinct, and does it pass close to the scale without concealing
figures?
Yes, the pointer in fact is an indicator light, it does not conceal figures and pass close to the
scale.
7. Are the reading errors caused by the parallax avoided? No, the parallax error is not avoided.
There are no precautions to avoid parallax error.
8. Is a warning given, if the meter falls? No, there is no meter so no warning should be given.
This question is not applicable to the case.
H. Controls
1. Have knobs, wheels, grips, and pedals been adapted to the specific requirements of fingers,
hands, and feet? Yes, the only control to be grasped by hand is the barcode reader and it is a
standard design fitting the hand.
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2. Have the controls been located logically, in the sequence of operation, and can they be easily
recognized by shape, dimensions marking, and color? There is only one control, the barcode
reader. First the barcode must be read and then the material requested is retrieved, so there is
no complicated operations and no sequence.
3. Are pedals avoided for standing work, and confined to two for sedentary tasks? No, there is no
pedal so the question is not applicable.
4. Are all the selected controls efficient?
Yes, there is only one control and it is efficient.
I. Panels
THERE ARE NO PANELS IN THE WORK PLACE SO THIS PART IS NOT APPLICABLE.
J. Paced Work
THERE IS NO PACED WORK. NO ASSEMBLY OR THE LIKE IS DONE. THERE IS ONLY
ONE JOB TO DO.
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74
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In the SMD Production Department, tiny devices, like chips, transistors etc. are mounted
on the circuit boards by the use of the SMD (Surface Mounting Device) machine. This SMD
machine takes the inputs (tiny devices) in forms of reels. Reels of the desired material is
loaded to the machine and software does the rest of the job.
As the SMD Machine needs materials in reels, the requirement for a separate warehouse,
other than the Raw Materials Warehouse, occurred. The cause of this requirement is that the
shelves of the Raw Materials Warehouse were not suitable for storing this kind of sensitive
devices and that finding the material you need would be very time consuming as there are lots
of reels to search.
For the reasons mentioned above two other warehouses are built. One is the SMD
Inventory, the other is SMD WIP Inventory. These warehouses consisted of stocking machines
called KARDEX. KARDEX is a machine that could be mounted inside a wall and that could
store and retrieve material in its trays.
The model of KARDEX used in the SMD Inventory uses a robot arm to fetch the tray
required, and the model of KARDEX used in SMD WIP Inventory uses a chain system to
retrieve the tray required.
When a work order is opened for the parts produced on SMD Machine, the work order
form is first sent to SMD Inventory, instead of Raw Materials Inventory. In SMD Inventory,
requirements for the work order is retrieved from the KARDEX and sent to SMD WIP
Inventory. That is, the usage of SMD Inventory is in the responsibility of the Production
Planning Department. After the requirements of the work order is sent and loaded to the
KARDEX in the SMD WIP Inventory, Production Department retrieves the materials it needs
to produce the work order from SMD WIP Inventory. Not all the requirements of the work
order must be retrieved at once, partial retrievals are also possible. That is, the usage of the
SMD WIP Inventory belongs to the Production Department, but the responsibility of the SMD
WIP Inventory belongs to the Production Planning and Control Department. Material retrieval
process can be seen on FIGURE PD.1 below:
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WORK ORDER
MATERIALS
SMD
INVENTORY
MATERIALS
SMD WIP
INVENTORY
SMD
MACHINE
FIGURE PD.1 MATERIAL RETRIEVAL PROCESS

As the raw materials of the SMD Machine are stored in reels, when work orders come to
the SMD Inventory, the materials for more than one work order could be transferred to the
SMD WIP Inventory in the same reel. So, when an operator comes to retrieve the material of
work order, he may take other work orders requirements in that reel. When the work order is
finished, the reel is returned to the SMD WIP Inventory.
The reason why a SMD WIP Inventory exists is to prevent chaos that may occur. As SMD
Inventory is a raw materials inventory, taking and returning reels to the SMD Inventory causes
problems in the review and control of the raw materials inventory.
In SMD WIP Inventory, it is tried to hold minimum quantity, because losses in SMD WIP
Inventory is more probable and counting of materials cannot be made. Usually 2-3 months
requirements of MRP are held in SMD WIP Inventory.
The location of the problem is SMD WIP Inventory. The owner of the problem is
Production Planning and Control Department, because although SMD WIP Inventory is used
by the Production Department, the inventory is in the responsibility of Production Planning
and Control Department.
The problem is: stopping of production on the SMD Machine due to unanticipated
shortages of the materials stored in the SMD WIP Inventory. Although the right quantity is put
to SMD WIP Inventory from SMD Inventory, there occurs complaints about the quantity of the
materials being less than required. Symptoms of the problem are:
Undesired stopping of production on the SMD Machine.
Late deliveries.
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Deviations from the Production Plan for the SMD Machine
And the causes of the symptoms are:
Inability to review materials in the SMD WIP Inventory..
Loss of materials in the SMD WIP Inventory.
Loss of materials during production.
Inability to review materials in the SMD WIP Inventory comes from the fact that material
transactions continuously take place. You cannot know whether you have a special material
exactly, because if it is not in inventory it could be in the production or set-up and may return.
Loss of materials in the SMD WIP Inventory is not clear yet, but there are studies going
on.
Loss of materials during production is unavoidable and anticipated. There is no way to
prevent it, because the working of the SMD Machine requires one free space in the reel before
beginning production and this free space is not always available so the first material in the reel
is lost.
The size of losses in the inventory and losses during production is negligible but when
accumulated through time. It could reach to levels that could stop production. The problem is
that you cannot know the quantity of loss, because you are not able to count materials in SMD
WIP Inventory. Although you think you have enough material in SMD WIP Inventory, the
material may have already finished.
The consequence of the shortage in materials is usually an operator asking you to give the
materials he needs if thought on the perspective of the Production Planning and Control
Department. There are 4 reasons for an operators coming to ask for material, these are:
1.
He was not able to find the material even though it exists in the SMD WIP
Inventory.
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1.
Material is lost in the inventory.
1.
Material is lost during production.
1.
Material may be in another work orders set-up, as materials are given in reels to
work orders.
SOLUTIONS PROPOSED PREVIOUSLY:

1.
To see the materials in the SMD WIP Inventory as EXPENSE and purchase in
excessive quantities (like nuts and bolts. etc.) and ensuring the usage by everyone in desired
quantity. But this proposal is rejected by the top level management. Because the materials held
in SMD WIP Inventory are expensive materials. The cost of holding excess quantity would
exceed the cost of probable stopping of production. (The calculations were done previously
and as these calculations are not relevant to our case, details are not given.)
1.
To give extra reels of each kind of material to the operators in the beginning of
every year. This proposal is at first applied but the review and control of these materials caused
problems when the production plans changed and it is not in use anymore.
2.
To review the material in SMD WIP Inventory in certain periods. This proposal is
also not applicable, because closing the WIP Inventory for review will stop the production.
SOLUTIONS I HAVE PROPOSED:
1.
To count only the number of materials lost in production. To facilitate in
this counting procedure a box may be put under the SMD Machine and all the lost material
could be gathered in this box. But this was not a feasible proposal, because separation of each
tiny item from each other and then counting would take more time than production.
2. As an addition to the proposal above I have proposed to prepare one box for each kind
of material, and change the box under the SMD Machine when the set-up changed. But this
means preparation and usage of 300-400 boxes as there are 300-400 material types. Not only
the price of this proposal will be a problem but also the usage and storage of boxes would be a
problem.
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3. Again as an addition to the above proposals I have proposed to use boxes just
as the same number of possible set-ups and put a label place on each box. When the material
on the set-up changes what the operator will do is to count the materials in the box, empty it
and put the label of the new material on the box. But even it may seem better, this proposal is
also not applicable, because on the average 50 set-ups at a time and dealing with all of these
would waste labor hour.
CURRENT SOLUTION:
AIMS:
1. To prevent the stopping of all production due to the shortage of a tiny chip.
2. To assure smooth application of MRP.
3. To prevent waste of set-up time (not to take a set-up item out, count it and again do the
set-up and not to stop production).
4. To use minimum labor for review.
SOLUTION STEPS:
1. Make sure the minimum quantity of materials is held in SMD WIP Inventory (2-3
months requirements).
2. Draw useless materials back to SMD Inventory (useless material means; the material
which has no requirement for 12 months due to MRP).
3. Every six months, count the materials by taking from set-up.
4. Till the review of six months period, count the materials you can take without stopping
the production.
In the direction of these aims and solution steps a MIS is designed in Access by me to
inform the managers of the positions of SMD WIP Inventory, SMD Machine and MRP.
80
Briefly in this MIS design:
Requirements of 1 year are taken from MRP (MANMAN Database)
Materials, which have no requirement in 1 year, is called useless materials and
reported.
Materials, which have no requirement in 3 months, is found and reported.
The materials which: -
have requirement in 3 months.
- are not in set-up or production.

- Are not counted for over 6 months
are found and reported.
The materials which have requirements in 3 months but are not in production at the
time are reported, and the counting of this materials is ensured. (A form is prepared in Access
listing all these materials and having a checkbox, after counting, operator puts a check and the
material is sent to another table)
81
8. CONCLUSION
8.1. I think the most important problem of interns in their practice organization is that they
do not really know what to do and how to do. Most of the universities and departments do not
even spend a little time to prepare a manual to guide their students. Even the departments
preparing manuals are insufficient at preparing satisfactory manuals. I suppose, our department
is very successful in guiding the students in their practice. I read the manual before my
practice, and during my practice I really knew what I must look at, where I must be careful and
how I should see things. In the manual, descriptions about each question, I think, is very
helpful for an intern, they make questions more understandable. And the sequence of topic in
the manual is making things really easier. So, consequently, as I was in the last years practice,
I am very satisfied with the manual, its scope, method and general approach. But one thing I
must mention is that I do not really the ergonomics checklist part is necessary. It takes a lot of
time to prepare this part. And finally the deadline for the reports is very short, I think it must at
least be 4 weeks as in many departments, short time to prepare reports really puts us under
stress, to give an example I was in the computer lab. all the time left from the courses, I did not
even see the sun shine for two weeks.
In the study of a potential IE problem, I had the most difficulty in the determination of the
problem. I think the manual is insufficient at this stage. Now, as I am completing my report, I
am yet not sure whether the problem I have chosen is the right one you are looking for.
I will have lots of time in ASELSAN, because I started working part time in the
department I made my practice. I have dealt with MIS during my practice and designed 4
programs using Access and Visual Basic. If I had the sufficient time in writing my report, I
would have mentioned about these projects but unfortunately two weeks time was not enough
for that. Now, I am still dealing with MIS in ASELSAN. At the time I am assigned to choose
Simulation Software and implement it in ASELSAN. I am now at the stage of contacting with
the software companies. That is to say I am doing what I would have wanted.
82
Drawing on my experience of my two practices and work experience in IDEF 99 Fair

Organization, I can say that the industrial engineers are system engineers. We must look at the
system from a wide perspective taking into account all the variables and data possible. We
must deal with the organization and true working of the system.
Other engineering disciplines deal with a limited portion of the whole system. They deal
with concrete concepts unlike us. What they do is either right or wrong, there is no other
possibility. But we, as industrial engineers, are not sure about the rightness or wrongness of the
things we do most of the time. That is to say, briefly, other engineering disciplines deal with
only a part of the system and we, industrial engineers, manage them to assure the fine
operation of the system.
Major functions performed by Industrial Engineers in ASELSAN can be listed as follows:
Total Quality Management
Observing Fixed Assets
Material Requirement Planing
Observing the Supports for R&D
Managing MRP II
Education of Customers and Personnel of ASELSAN
Modern Activity Measurements for the Personnel
Modern Costing for Strategic Decisions
Production Planning and Control
Obtaining and Trailing the Patent Rights in ASELSAN
Project Management
Investment and Feasibility Analysis
Preparing Contracts
Preparing and Trailing Proposals
Cost Accounting
Pricing
83
Top managements impression and attitudes towards industrial engineers and industrial
engineering functions was positive as I understand, but considering the overall company top
management gives more importance on electronics engineering.
8.2.
OVERVIEW OF PRODUCTION SYSTEM
PRODUCTION PLANNING AND CONTROL SYSTEM
QUALITY PLANNING AND CONTROL SYSTEM
MANAGEMENT INFORMATION SYSTEM
WORK STUDY AND HUMAN FACTORS ANALYSIS
IE PROBLEM DEFINITION
USEFULNESS RATE
4
4
4
3
2
4
EXPLAINING OTHERS WHAT I WANTED

UNDERSTANDING WHAT I NEED TO
WRITING A REPORT IN ENGLISH
GATHERING DATA/DOCUMENTS/INFORMATION
TRANSPORTATION/FOOD/HOUSING
CONVERTING OBSERVATIONS INTO ANSWERS
DIFFICULTY LEVEL
4
2
4
1
3
1
TITLE:
ASELSAN A.S.
MAILING ADDRESS:
ASELSAN A.S.
Mehmet Akif Ersoy Mah. 16. Cad. No:16
Macunkoy Yenimahalle ANKARA
PHONE:
(312) 385 19 00
FAX:
(312) 354 13 02
84

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INTRODUCTION

Akyurt Tesisleri: ASELSAN Inc.

PARTICIP. RATE (%)

*Tables are taken from 1998 Annual Report

Tactical Area Communications Systems (TACOMS)

III.Gen. Night Vision Binoculars

Smart Card Operated Electricity Meter

Total Quality Management

Observing Fixed Assets

Material Requirement Planing

Observing the Supports for R&D

Education of Customers and Personnel of ASELSAN

Modern Activity Measurements for the Personnel

Modern Costing for Strategic Decisions

Production Planning and Control

Obtaining and Trailing the Patent Rights in ASELSAN

Investment and Feasibility Analysis

Preparing and Trailing Proposals

2. ANALYSIS OF MACRO ASPECTS

MILITARY COMMUNICATION SYSTEMS AND EQUIPMENT

RADAR AND ELECTRONIC WARFARE SYSTEMS

COMMAND,CONTROL AND AIR DEFENSE SYSTEMS

NAVIGATION AND GUIDENCE SYSTEMS

ELECTRO OPTIC SYSTEMS AND EQUIPMENT

PROFESSIONAL CONTROL AND AUTOMATION SYSTEMS

Bask Devre Kart

VHF/FM Askeri Telsiz Ailesi

Sentezrl Telsiz Ailesi

Trunk Telsiz Ailesi

Elektronik Telefon Sant.

6,04 2,33 3,09

Kara Gzetleme Radar

F-16 Uaklar INS Cihaz

1,09 1,87 1,18 1,37

1,40 2,33 3,81

DNTSS Gndz ve Gece Termal

4,03 1,48 1,25

TABLE 2.1 EXPORTS ACCORDING TO PROJECTS

*AVUSTURYA, BANGLADE, HOLLANDA, SVRE, MALEZYA, NJERYA, SUDAN, TUNUS,

TABLE 2.2. EXPORTS ACCORDING TO COUNTRIES

Ex - USSR republics want TSE standard).

Material requirements are obtained from MRP.

Specification sheets of these materials are sent to Material Supply Department.

In order to purchase materials from a company it must be an approved vendor of

Circuits and Transistors

Far East (Taiwan, Japan)

Europe (Germany, Switzerland (Dupont))

straightforward and a reliable company to obtain

continuously preserve their preference towards us.

Environment And Public Responsibility

Under extraordinary conditions, due to the demand of the Turkish Armed

Investment proposals in ASELSAN is not prepared by top management but

As mentioned before in ASELSAN there is no specialized department to make investment

TABLE 2.3. APPROVAL LEVEL IN INVESTMENTS

Cellular Phone : TTP license (United Kingdom)

Enemy Identification Systems : Rightone know how

Stinger Missiles : General Electric know how

Pilot Survival Systems : Tadiran ( Israel )

Radios : Phillips license ( Netherlands )

Radar Devices : Alcatel license

Of course, obtaining licenses and know how of important technologies imposes

Deciding on machine vendor

about the machine