ME 399

2006 SUMMER PRACTICE

Preperead By : Ahmet ARSLAN

Student Number : 2220991

University Of Gaziantep

CONTENTS

Content ………………………………………………………….. 2

Introduction ……………………………………………………... 3

Abouth Gap Metal………………………………………….......... 4

Control of Production Provision …………………………………..6

Product Realization ………………………………………………...7

Design and Development …………………………………………11

Purchasing………………………………………………………….11

Measurement, Analysis & Improvment……………………………12

Worker’s Healt and Work Safaty…………………………………..15

Inventories………………………………………………………….16

Conclusion …………………………………………………………21

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INTRODUCTION

Purpose of the practice ; This cource which is called ME 399 deal with management of factory and selling of product ;

1- Organization and management of a plant

a) type of organizationb) standart applicationsc) control techniques and production planingd) accountinge) selling – purchasingf) plant layout

2- Factors noticed in selection of plant location

a) staffb) water energyc) raw materialsd) selling and delivery

3- Storage and stock layout4- Other auxiliary foundations5- Productivity , quality control6- Assembly line7- Safety and worker-boss relations

In this cource the purpose is changing of our theorical knowledge to practice.To see differences in school life from social life.The other purpose is interwiev to engineers and learn important things from them and to examine machines and real working area, to see life of engineers closerly because of we will do same things after one year later. To speak and see engineers working friends who are technicians.The most imporant thing is thinking as an engineer so a person can obtain it if he or she moves with them.

In summer practice I was in Gap Metal , there is informatin abouth Gap Metal in next page. This holiday, which is between two terms, is too different for me. Because of my future plans. I decided that this holiday is good chance for me. And than, I completed ME 399 in the Gap Metal. So this is more useful and necessary than the others for us. It contains some investigation, processes of industrial management and organisation. These are accounting, storage facilities, stock and production control, auxiliary services of the plant, quality control, repair and maintenance, accounting etc. The third year practise is useful to understand how the most efficient layouts of equipment and of operation and services facilities are developed,

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whether in manufacturing plants, warehouses or other industrial and business applications. We learned the technical knowledge up to third year which is noticed in the organisation is important. And also, a functions of the mechanical engineers, is considered in the organisation. For example I saw that mechanical engineer worked, at all unit of factory (management, planning, outdoor trade, atelier).

The subject of the lecture in the school is to be stiffening at the end of the summer practise. Also learned the position of the engineers, manager and the structure of the organisation. Briefly I observe requirement of my job.

I observed human relations in management, I also reclaimed that the reactions people have to their work environment are linked directly to their willingness to exert effort on be half of the organisation that employ them.

ABOUT GAP METAL

Gap Netal was established in GAZİANTEP INDUSTRIAL ESTATE at 2003 by their partners having experting at their branch. They use CNC LASER CUTTING AND WIRE EROSION MACHINE at least technology at their working. They can cut kind of all machine parts. They specialized in the following services;

High precision laser cutting A wide variety of materials Quick quotes Optimized production runs for reduced waste

PARTNERS

*ÇAĞTEKS INDUSTRY(TEPKEN) Extrusion dies for PVC profile, textile spare parts production

*DEPSAN INDUSTRY AND TRADE LTD. Automotive spare parts production, sheet metal punching, production of boilers by solid fuels

*LASPARSAN INDUSYRY AND TRADE LTD. Rubber, textile spare parts production

*TEKNİK KALIP INDUSTRY Sheet metal and volume dies production, textile spare parts production

*MOTOSAN INDUSTRY AND TRADE LTD. Food machine production (waffle, chocolate and biscuit machine)

*DİKKATLİ MACHİNE INDUSTRY Shoe heel machine, clamp machine production and textile spare parts production.

LASER AND WIRE EROSION METAL CUTTING PRODUCTIS

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*Sheet metal cutting dies *Extrusion dies*Textile, automotive spare parts etc.

are made by precision metal cutting.Cutting tolerance is +/- 0,003 mm and in angle cutting it is +/-15 o at 100mm.

WIRE EROSION CUTTING MACHINE CAPSCITY

Cutting sensitivity : 0,003 mm Cutting by angle 30o in 115 mm Table capacity: 1000 X 800

Gap metal and its partners having wide range of machine park give services for the design and manufacture of all parts and mould.

SOME PRODUCTS

1. STEEL SHEET METALCutting capacity(max):X:3000 mmY:1500 mmZ:20 mm

2. ALUMINIUMCutting capacıty(max):X:3000 mmY:1500 mmZ:2 mm

3. COPPERCutting capacıty(max):X:3000 mmY:1500 mmZ:2 mm

4. CHROMECutting capacıty(max):X:3000 mmY:1500 mmZ:12 mm

5. ALLOYED ALUMINIUMCutting capacıty(max):X:3000 mmY:1500 mmZ:8 mmThe CNC laser technology provides;

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High quality and precise dimension Rapid and without burring production

Rigid product and low cost

LOCATION OF THE ORGANIZATION Gaziantep is one of the most iportant center of production and export, due to its industrial and commercial structure. Gaziantep provides the link between the industrial cities in the west and southern Anatolia, and also has close commercial relatians with the Arabic countries because of its location on the crossroads of important highway.

Because of this reason, GAP METAL SANAYİ TİCARET LTD.ŞTİ. is located in gaziantep. Adress is Küçük Sanayi Sitesi B Blok 37 Nolu Cad. No:8 Şehitkamil/GAZİANTEP

WORKERS AND BOSS RELATIONS

In the GAP METAL, workers and boss relations are very important. So certain time period , boss makes meetimgs with adminisrative comitee personnel and workers. Aim of this meetings is toimprove relations between all personnel in the company. In the meetins, they talk about their problem and study to find solutions. Boss frequently vists the production area to observe workers and their works. Boss is interested in worker’s problems. Thus boss win worker’s confidence. I think that, that is very good things. Because in the some other companies there are no relations between boss and workers. Thus workers don’t like their job and production get be smaller. But in the GAP METAL, there are studies to improve workers to love their job and workers give attention to their jobs. In the event that, administrative comitee personnel are forced to do some works. Thanks to boss’s experiences. Difficult works can be done. While I was in the GAP METAL. Boss helped buying departments personnel about raw materials company.

CONTROL OF PRODUCTION PROVISION

In Gap Metal;information that describes the characteristics like dimensions, appearance, technical specification etc. are distributed to the relevant personnel. Reaching working instructions is easy as necessary. The equipments for producing, monitoring measuring devices are used to produce products with a high quality. All monitoring and measuring devices are controlled. Registiration and calibration operations are made in inside / outside.

QUALITY CONTROL

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Each product has some quality value and in production processes this value are controlled with experience.In experience center new or wanted product are tested.Instead of this some production department have laboratuar.One of them is casting factory . This experiences don’t any damage product. But some times you want to know resist value of your product .Maybe car producers test their cars against accedents. At this department. workers make some tests for finding properties of products and raw naterials. For example, strength test, melting test of raw materials of steel,copper and others, size measurement test. Thus high quality products are provided to coustomer.

Also some quality control workers, who are trained about quality controls of production, abservation production line. Besides, they takes samples fom all products and provide to measure their quality. Finally , during observation, production datas are registered to some forms. For example, Process & Final Control Product, Denier Control, Conversion Control, Printing Control Form, Woven & Lamination Control, Bigbag Daily Quality Control Report . These forms are prapared as shown below.

PRODUCT REALIZATION

VALIDATION OF PROCESSES FOR PRODUCION

In order to increase corrosion resistance of semi products, some applications which can not be validated by monitoring and measuring during the production on the product. These types of operations are identified as special processes. Because of the existence of this kind of processes; special monitoring and measuring test techniques, periodical maintenance system, controlling methods are improved to validate the special processes. For controlling and testing suitable equipments are available with a experienced and trained personnal.

Production is controlled through documented instructions, inspections and specially can be identified via searching forms fulfilled by related personnel during the production. Inspection and test status is continuously identified through all stages of production flow by means of registrations, labels, markings or protected / marked area of storage. Procedures for identification of inspection and test status is an integrated part of relevant procedures and work instructions.

The machines and equipments which effects the quality level of processes are included on the periyodic maintenance system. Which machines and equipments they are and how periyodic maintenances are carried out are defined on the work instructions. Also, failure and annual maintenances are descried on the related procedure.

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The process capability of equipments are formally carried out by a procedure and ensured before SPC methods usage. In the plant, those activities are implemented by plan. Special processes are controlled through written procedures and specific work instructions. Statistical methods which are able to be implemented are defined on the procedures. The most important method SPC are carried out according to the plan and related instructions.

PLANNING OF PRODUCT REALIZATION Gap Metal has clearly defined process approach for receiving, evaluating and hadling of supply orders. Special agreements with the customer, changes or deviations from normal practice agrees in writing between headquarter ( Marketing and Export Departments ) and the customer.

Orders become definite by entering their information to Product Selling System package program on PC. The related system checks the order and stock in warehouse. Necessary products to produce are taken in the form of list.

Production Manager determine the following as appropriate: Quality objectives, requirements of product, the need to establish processes, documents, provide resources specific to product, required verification, validation, monitoring, inspection, and test activites specific to the product and the criteria for product acceptance, records needed to provide evidence that the realization processes and resulting product meet requirements. If this items appropriate as order production plan and time schedule are sent to relevant departments. These studies are given in Production procedure and warehause activites procedures clearly. The planning of product relization are implemented according to pro. Production and material planning.

PRODUCTION PLANNING & METHODS OF CONTROLS

Predicted consignment date which is related with wanting order from internal trade or external trade manager, is wanted from planning department. The planning manager checks stock control from the ‘Actual Count Schedule’ and, wanting order may be directed to existed order properties or stock .Than P.M. estimates ‘Delivery Period’ by analysis of existing situation from the activity observation program. P.M. declares to sale manager. If the customer accepts the order, Internal or External Trade Manager prepares the ‘Order Observation Form’ and sends to P.M.who estimates daily, weekly and monthly working power plan which depends on principle of %100 productivity and properties of the order. Than P.M. gives information, which is about requirements to related departments. If raw materials, half manufactured and helper materials in the stock are not enough, P.M. prepares the ‘Buying Request Form’ and orders buying manager by this form. Otherside P.M. makes coordination of processes in the production area and prepares a requirement materials plan in short or long time period. Also , If interested firms are required for some other production processes. These are called fasons. P.M. arranges ‘Fason Entrance to Production Form’ or ‘Fason Production Request Form’ and sends to interested firms (fasons). Finally P.M. make the directions of the production , new order and changing weavon loom plan. After that , P.M. again controls order observation orms and daily production plans. Than P.M. informs production production manager by preparing ‘Entrance To Production Form’ and ‘Production

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Request Form’. In everyday P.M. observes ‘Manufactured Storage Count Report’ , ‘Bale Count Report’ , ‘Conversion Count Report’ , ‘Square count Report’ , ‘Raw Material Count Report’, ‘Helper And Scrap Materials Count Report’ from Storage Attendant , ‘Daily Entrance Exit Report’ from Quality Control Manager . By using these reports , P.M. checks processes , production flow , performance and exit situation of the production and arranges the ‘Actual Count Schedule . P.M. takes informations of quantities which are exist product , total product in future and conveyed product by using ‘Actual Count Schedule’ and ‘Order Observation Form ‘. Finally P.M. adds these informations to ‘Activity Observation Program’ . By this way , P.M. can manage daily or global program in long time period . In the Coordination of P.M. , the product is confirmed , made bale , defined and labelled by Quality Control Manager .Than , It is installed to storages with ‘Finished Product Storage Entrance Form’ and registered to ‘Manufactured Storage Count Report’ for another day . Thus The product becomes ready for conveyance. Planning methods are;

Coming Of Delivery Request Date Existing Situatin Analyse & Optimization & Giving The Delivery Date Confirm Of Definite Order In The Department Of Planning Preparation To Production Giving the Direction To Production Observation Of The Production Processes & Simulation And Coordination Of the

Production Flow & Supply Planning Installing To Ready Products To The Storages And Consignment

THE PHILOSOPY OF THE PLANNING MANAGER

1. COSTUMER PLEASURE2. GLOBAL POINT OF WIEV WITH DATA COLLECTION ,PROCESSING AND

RESULTS3. SIMULATION & OPTIMIZATION4. TO GIVE ASIST IN THE IMAGE OF THE GAP METAL IN THE MARKET5. TO GIVE ASIST IN THE QUALITY SYSTEM OF THE GAP METAL6. ASISTANCE TO DYNAMISM OF DEPARTMENTS IN THE GAP METAL7. TO PERFORMANCE OF REVENUE8. GLOBAL MONTHLY , WEEKLY, DAILY PLANS

IDENTIFICATION AND TRACEABILITY All products are identified and marked with product type identification thoughout production and packaging, enabling identification and traceability of all relevant technical data. Customer Property :

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Gap Metal’s can specify special customer property for sales and purchasing . In case it will happen relevant procedure will be established.

PRESERVATION OF PRODUCT

Gap Metal follows well defined procedures for controlling the handling of : raw materials, semi products, packaging materials and final products. Defined procedures are established for storage of raw materials, semi products, nonconforming products and final products.

Controlled procedures are established for packaging and delivery of samples and final products. Handling and storage during production is defined in various relevant procedures and work instructions subject for individual activities and departments.

CONTROL OF MONITORING AND MEASURING DEVICES

All relevant inspection, measuring and test equipment are unambiguously identified and registered. All equipment for measuring and testing are subject to approval by the Quality Department on behalf of defined requirements for capability, accuracy and uncertainty. All equipment for establishing objective measuring and test results are subject to documented and traceable periodic calibrations. All equipment for measuring and testing are marked to indicate calibration status. Equipment outside valid calibration status is withdrawn and placed under protected quarantine.

CUSTOMER-RELATED PROCESSES

DETERMINATION OF REQUIREMENTS RELATED TO THE PRODUCT

The requirements related to the product improved by establishing interactions with the customers.

Requirements specified by the customer after service including the requirements for delivery and post-delivery activites, Requirements, which are not stated by the customer, specified by Gap Metal statutory and regulatory requiremens, additional requirements are designated by technical contracts, technical drawings, cataloques, procedures, instructions, forms, labels etc.

Gap Metal is preparing the product definition forms including specifications according to customer requirements and related product standards for every customer.

REVIEW OF REQUIREMENTS RELATED TO THE PRODUCT

Sailing operations are made by Gap Metal internet. Therefore, review covers technical cataloques and advertisements related to the product information.

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When the product requirements are changed, modification announcement 5.003.F.002 publicated to change the relevant documents and to make aware relevant personel.

Following procedures are subject to the activity: Material and product planning Warehouse activities Export product demand and export activities . Order and dispatch .Procedure for change of product specification and notice of change

CUSTOMER COMMUNICATION

Items of product information, order handling, amendmens, contracts, customer feedback including complaints can be obtained with meetings, documents, conservations with telephone, inquiry forms.

DESIGN AND DEVELOPMENT

The Managing Director of Gap Metal has the superior responsibility for all products. The need for new products are defined by Gap Metal’ s managers and launched by the decision of the managing director of Gap Metal. All activities for new product design are carried by production manager and their responsibles that belongs to this departments, as defined on the procedure.

The other modifications including major those are passed to Gap Metal for out demands or directly to the process responsible for in demands. Process department has responsibilities to take this modifications place as defined on procedures. Plants should ensure that the production are performed acc. to the specifications.

For planning design and development, necessary stages, appropriate review, verification, validation, responsibility and authority dispersion are made with the relevant procedure.

For the input of design and development functional and performance requirements, statutory and regulatory requirements are used. Cost, safety, ergonomy, assembling, aesthetic, packaging, re-use of waste, risks etc. can be input.

The verification of design is always performed to ensure outputs have met inputs. The validation of design is always performed to ensure that the resulting product is capable of meeting the requirements for the specified application or intended use.

PURCHASING

Gap Metal follows defined procedures for planning and control of purchase, ensuring that purchased goods are in conformity with relevant specifications, Environmental and OHSAS Management System.

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The Capability of a possible sub-supplier is evaluated before approval for a first time supply by defined department. A selected supplier's data is registered in the supplier file before placing an order.

Results of receive inspection of goods are registered in the relevant sub-supplier file and are the basis for determining conditions for possible further purchase and extent of related receive inspection. Purchase of goods are made on behalf of written requisition, specifying technical and quality related requirements.

Whenever needed, The company may control materials and processes in the shop of suppliers directly. The suppliers are informed and the required controls on material and process are implemented according to defined instructions.

MEASUREMENT, ANALYSIS AND IMPROVEMENT

General

Gap Metal plan the monitoring, measurement, analysis and improvement processes to demonstrate conformity of the product, to ensure conformity of quality management system and to improve the effectiveness of the system continually.

MONITORING AND MEASUREMENT

CUSTOMER SATISFACTION

As one of the measurements of the performance of the Quality management system, Gap Metal observe customer perception as to whether it has met customer requirements.

Customer satisfaction evaluation increases customer satisfaction, supplies process variation as necessary, forms data for continual improvement, improves product quality, increases the power of competition

Information concerning customer requirements, competition and market requirements, feedback about offered product and new product, sufficiency of requirements are the items which have to monitored, analyzed and evaluated.

Gap Metal’s sales departments are responsible for measuring customer satisfaction by the methods of assembling direct communication, making inquiry with customer groups, conducting customer complaints to Gap Metal. After collecting the data throughout the year, evaluation of the results is made in Management Review Meeting to determine new targets.

INTERNAL AUDIT

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Internal audit of the Quality systems are the basic tools of Gap Metal for ensuring the efficiency of its quality system. Audits are systematically carried through by internal auditors, on a scheme which covers the complete Quality Management System within a period of max. one year, certain crucial areas are audited more frequently.

Audits are carried with the planning done by Quality Department. Audit results are documented and reported to the top management. A corporate audit team further carries through system audits throughout Gap Metal Auditors can not audit their own work.

The management responsible for the area being audited have to ensure that actions are taken without undue delay to taken and reporting of verification results.

Production is controlled through documented instructions, inspections and specially trained operators. Production control system is planned through production flow. The system provides all relevant work documents (part lists, drawings, production parameters, identification, etc.). Order of work operations is defined by process charts, along with identification of applicable production apparatus, process parameters, inspections to be carried through and accept criteria. Written procedures and work instructions are established for all activities where mode of activity and/or operation is not simply obvious.

The machines and equipments which effects the quality level of processes are included on the periyodic maintenance system. Which machines and equipments they are and how periyodic maintenances are carried out are defined on the work instructions. Also, failure and annual maintenances are descried on the related procedure.

The process capability of equipments are formally carried out by a procedure and ensured before SPC methods usage. In the plant, those activities are implemented by plan.Special processes is controlled through written procedures and specific work instructions.Statistical methods which are able to be implemented are defined on the procedures. The most important method SPC are carried out according to the plan and related instructions.

MONITORING AND MEASUREMENT OF PRODUCT

All products to enter the production in Gap Metal are subject for conformity inspection, versus specified requirements, before release for use. The extent and type of inspection is depending on the situation, e.g. supplier capability, type of received product, products, production stage, etc. and might consist of check of relevant certificates, visual examination, measuring, chemical analysis or performance test.

Inspection and test status is continuously identified through all stages of production flow by means of registrations, labels, markings or protected / marked area of storage. Procedures for identification of inspection and test status is an integrated part of relevant procedures and work instructions.

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Procedures are established for controlling and documenting cases of exemptions and/or consessions. Inspection and testing is carried through during the complete production flow in accordance with job charts. All products are subject for documented final inspection and approval before for delivery

ANALYSIS OF DATA

Gap Metal collects and analyses appropriate data about customer satisfaction ( 8.2.1 ), conformity to product requirements ( 7.2.1 - 3 ), characteristics / trends of processes and products, suppliers’s performance -contribution - deficiency ( 7.4 ) to demonstrate the suitability and effectiveness of Quality management system and to evaluate where continual improvement of the effectiveness can be made.Methods used for analysis of data described in relevant items.

IMPROVEMENT

CONTIUAL IMPROVEMENT

In Gap Metal the usage of Quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions, outputs of management review ensure continually improve the effectiveness of quality management system.

Continual improvement includes steps as:

● Selection of improvement area, reason of selection.

● Evaluation of existing process effectiveness, selection of problem, determination of objective for improvement.

● Analysis of data, identification of main reasons and their verification.

● Identification of probable solutions, establishing alternatives, removing source of origin reasons, preventing their reformation.

● Evaluation of effects. Changing old processes to new ones to prevent reformation of problems.

● Evaluation of improvement action and the effectiveness of processes. Review of effectiveness of project.

CORRECTIVE ACTION

Gap Metal takes actions to eliminate the cause of nonconformities to prevent recurrence.

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For corrective actions; Gap Metal has a procedure includes as:

●Review of nonconformities including customer complaints.

●Determination of causes of nonconformities.

●Evaluation the need for action to ensure that nonconformities preventing reformation.

●Determination and implementing action needed.

●Records of results of action taken

●Review of corrective action taken.

●Identification of actions and realization.

PREVENTIVE ACTION

Gap Metal determines preventive actions in order to eliminate probable causes of nonconformities during / after actions. Actions and processes effect product quality, results of audits,results of SPC, records, complaints of customer form the source of preventive actions.

For corrective actions; Gap Metal has a procedure includes as:

●Identification of potential nonconformities and their causes,

●Evaluation the need for action to prevent occurance of nonconformities,

●Determination and implementation of action needed,

●Records of results of action taken,

●Review of preventive action taken.

WORKER’S HEALTH &WORK SAFETY

Worker’s health is the most important things for personnels of the Gap Metal administrative comitee. Because workpower & productivity directly depend on the worker’s health. So Gap Metal administrative comitee uses some applications which are about worker’s health and taken preventive measure for industrial accident. And also they still study to find better solutions for these two important subjects.Personnels of the Gap Metal

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administrative comitee arrange arrange meeting for workers in every three weeks periods. This meeting contains worker’s skill , motivation and requirements for good performance and worker’s life. Also Gap Metal is careful about new workers. When new workers are taken to the factory. Engineers & thecnical personnels leacture they about job which is called as job education. They help new workers in production area about everythings which are related his / her job. In certain periods , TMMOB technical personnels , engineers & technical personnels of the Gap Metal control & repair machines if it is required. Also Gap Metal consider physically handicapped people & sentenced people. So Gap Metal provides lots of appourtuinuty about works for people as mentioned above.Every sunday, doctor who works for Gap Metal , inspect whole workers in Gap Metal. If a worker has some problem about his /her healty,personnels permit she / he to go to the hospital SSK. If he / she needs help for other serious problem. Personnels and workers suppot him / her. In the plant , workers work in high noise which can damage their ears. So all workers are warned about taking earlap before entering to plant. Also workdress , safety goggles , safety glove and mask are given workers by Gap Metal. Finally , Gap Metal contains lots of social activity for its workers. There are tours , picnic , educational tours in every years.

INVENTORIES Inventories are valued at the lower of cost and net realizable value.Cost incurred in bringing each product to its present location and condition are accounted as follows : Raw materials - restated cost eliminated of imputed interest on a weighted average basis. Finished goods and work-in progress-cost of direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. INVESTMENTS AVAILABLE FOR SALE All investments are initially recognized at cost, being the fair value of the consideration given and including acquisition charges associated with the investment. After initial recognition, investments which are classified as "available-for-sale" are measured at fair value unless fair value cannot be reliably measured. For investments where there is no quoted market price and where a reasonable estimate of the fair value could not be determined since other methods are inappropriate and unworkable, they are stated at cost.

OFFSETTING Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is stated at cost less accumulated depreciation and any impairment in value. Land is not depreciated. Depreciation is calculated on a straight-line

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basis over the estimated useful life of related asset: Land improvements 25 years Buildings 25 years Furnitures and fixtures 5-6 years Machinery, installations and equipment 3-10 yearsMoulds and models 6 years Vehicles 3-4 years Leasehold improvements 5 years The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount. The recoverable amount of property, plant and equipment is the greater of net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their presentvalue using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. Impairment losses are recognisedin the income statement.

GOODWILL AND INTANGIBLE ASSETS Intangible assets other than goodwill are stated at cost less accumulated amortisation and any impairment in value. Intangible assets other than goodwill are amortized on a straight-line basis over the best estimate of their useful lives (5 years) Goodwill represents the excess of the cost of the acquisition over the fair value of identifiable net assets ofsubsidiaries and associates at the date of acquisition. Goodwill is amortized on a straight-line basis over its useful economic life up to a presumed maximum of 20 years. It is reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is stated at cost less accumulated amortization and any impairment in value. Intangible assets acquired separately from a business are capitalized at cost. Intangible assets acquired as part of an acquisition of a business are capitalized separately from goodwill if the fair value can be measured reliably on initial recognition, subject to the constraint that, unless the asset has a readily ascertainable market value, the fairvalue is limited to an amount that does not create or increase any negative goodwill arising on the acquisition. Intangible assets, excluding development costs, created within the business are not capitalized and expenditure is charged against profits in the year in which it is incurred. Intangible assets are amortized on a straight-line basis over the best estimate of their useful lives. The carrying values of goodwill and intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.

FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currencies are recorded at the rate ruling at the date of transaction. Balance sheet items denominated in foreign currencies have been translated at the rates of exchange prevailing at the balance sheet dates. Exchange gains or losses arising on settlement and translation of foreign currency items have been included in the related income or expense accounts as appropriate. BANK BORROWINGS All borrowings are initially recognized at cost, being the fair value of the consideration received net of issue cost associated with the borrowing. After initial recognition, borrowings are subsequently measured at amortized cost using the effective interestrate method. Amortized cost is calculated by taking into account any issue costs, and any discount or Premium on settlement. Gain or losses are recognized in net profit or loss when the liabilities are derecognized as well as through the amortization process.

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TRADE AND OTHER PAYABLES Liabilities for trade and other amounts which are normally settled up to 135 day terms are carried at amortized cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Company. Post-dated checks given which are classified within trade payables are measured at amortized cost.

PROVISIONS Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate thatreflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as an interest expense.

INCOME TAX Tax expense / (income) is the aggregate amount included in the determination of net profit or loss for the period in respect of current and deferred tax. Deferred income tax is provided, using the liability method, on all temporary differences at the balance sheetdate between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, carry-forward of unused tax assets and unused tax losses can be utilised.The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the periodwhen the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

EMPLOYEE TERMINATION BENEFITS In accordance with existing social legislation, the Company is required to make lump-sum termination indemnities to each employee who has completed one year of service with the Company and whose employment is terminated due to retirement or for reasons other than resignation or misconduct. In the consolidated financial statements, the Company has reflected a liability calculated using the Projected Unit Credit Method and based upon estimated inflation rates and factors derived using the Company's experience of personnel terminating their services and being eligible to receive such benefits and discounted byusing the current market yield at the balance sheet date on government bonds. Employee termination benefits are reflected in non-current provisions in the consolidated balance sheets.

REVENUE Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company andthe revenue can be reliably measured. Revenues are stated net of discounts, value added and sales taxes. The

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following specific recognition criteria must also be met before revenue is recognized :

Sales of Goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer at the invoiced values and the amount of revenue can be measured reliably. Net sales represent the invoiced value of goods shipped net of sales discounts and commission.

Rendering of Services Revenue from rendering services is recognized by reference to the stage of completion when it can be measured reliably. Where the contract outcome cannot be measured reliably, revenue is recognized only to the extent of the expenses recognized that are recoverable. Interest Revenue is recognized as the interest accrues unless collectibility is in doubt. Dividends Revenue is recognized when the Company receives the payment. BORROWINGS COSTS Borrowing costs are expensed as incurred.

USES OF ESTIMATES The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the amounts reported on the accompanying financial statements and accompanying notes. Actual results could differ from the current estimates. These estimates are reviewed periodically, and as adjustments become necessary, they are reported in earnings in the periods in which they become known. EARNINGS PER SHARE For the purpose of these financial statements, earnings per share is calculated by dividing net profit by the weighted average number of shares that have been outstanding during the year. The weighted average number of shares outstanding during the year has been adjusted in respect of free shares issued without corresponding increase in resources. However, for statutory purposes, earnings per share calculation is subject to the requirements of local regulations and laws.

TRADE AND SETTLEMENT DATE ACCOUNTİNG All "regular way" purchases and sales of financial assets are recognized on the trade date, in other words, the date the Company and its subsidiaries commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the market place.

RECOGNITION AND DERECOGNITION OF FINANCIAL INSTRUMENTS The Company recognizes a financial asset or financial liability in its balance sheet when and only when it becomes a party to the contractual provisions of the instrument. The

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Company derecognizes a financial asset or a portion of financial asset when and only when it loses control of the contractual rights that comprise the financial asset or a portion financial asset. The Company derecognizes a financial liability when and only when a liability is extinguished that is when the obligation specified in the contract is discharged, cancelled and expires.

CASH AND CASH EQUIVALENTS 2005 2004

Cash on hand Bank accounts (including short-term time deposits) 17,319,708 8,229,558Checks and notes readily convertible to cash 3,651,655 3,370,259 20,974,588 11,600,730As of December 31,2004, TL 3,800,000 of cash and banks represent the time deposit with maturity date, January 2, 2005 bearing an interest rate of 25,5% per annum and GBP 688,000 represent the time deposit with maturity date January 2,2005bearing an interest rate of 1,99% and EUR 772,000 represent the time deposit with maturity date January 2,2004 bearing an interest rate of 1,09 % per annum. As of December 31, 2005, TL 769,095 of cash and banks represent the time deposit with maturity date, January 2, 2005 bearing a interest rate of 42% per annum. The breakdown of cash and cash equivalents in TL as to currency of denomination is as follows :

2005 2004USD 1,267,820 3,819,564EURO 9,560,572 2,206,692GBP 2,144,997 1,140,715CHF

TRADE AND OTHER RECEIVABLES 2005 2004

Accounts receivable 60,364,285 45,261,229 Notes receivable and post-dated checks 41,048,058 28,880,776 Due from related parties 6,662,640 30,746,171 Others 100,818 61,866 108,175,801 104,950,042 Less : Allowance for unearned interest income (3,453,232) (5,982,608) Less : Allowance for doubtful receivables (3,451,118) (2,627,066)101,271,451 96,340,368 Turkish Lira equivalents of foreign currency denominated items, reflected in the equivalent purchasing power of Turkish Lira at December 31, 2005and 2004, are as follows :Accounts receivables 2005 2004EURO 10,930,039 6,163,013USD 3,909,661 4,143,133GBP 17,788,120 -Notes Receivables and post-dated checksUSD 72,404 371,521EURO 60,030 -

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As of December 31, 2005, the receivables from the export sales of the Company have been factored to a factoring company which is also a related party amounting to USD 616,395, EURO 4,046,909, GBP 3,685,790(2004– USD 1,173,685, EURO 4,147,479, GBP 462,074).Turkish Lira equivalents of foreign currency denominated items, reflected in the equivalent purchasing power of Turkish Lira at December 31, 2005 and 2004 for due from related parties are shown in Note 21.

CONCLUSION

In University of Gaziantep, teachers lecture us about theoretically technical information. Also ME 199, ME 299, ME 399 lessons are given us to improve our know ledges practically. So I took last course, which is ME 399. I think that, this experience is useful for us.

This cource which is ME 399 different from ME 299 because in this cource I examined factory organization and management of plant .I think Gap Metal very good company to see institutional management because they sell their product most europe country. In this summer practice I saw new and different machine . I saw and learnt application of my theoretical knowledge . It is very good thing which see how an engineer work and I examined their worklife and I felt what they feel in bad work condition. I chatted with them and I listened their experiences and some very important things which is accepted by them . I learnt that what difference an engineer from a technician is and how engineers work themselves or all together.

In Gap Metal I examined and saw that how a factory run and work times , start and finish times , lunch meals , hollidays, their salaries , how an engineer improve himselves. I saw that connection between people , between engineers and workers. Between engineers and between workers. Thus I completed ME 399. I learned lots of things about production, assemblies, consignment and others.

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