Professional Documents
Culture Documents
* *
October 2020
This project certainly had called up on the participation of various individuals who work in
Addis Ababa Bottle and Glass Share Company without which it could have not been realized. We
are especially grateful Production and Quality Assurance manager Mr Solomon Guji in the
factory, and the General Manager Mr Mengistu, and Miss Alem who is technical supervisor for
their valuable help in our tour. And we are also indebted to address our thanks to all employees
of the factory who were patient and courteous throughout our visit.
1.4. Methodologies..................................................................................................................................8
PART TWO.................................................................................................................................................9
PART THREE............................................................................................................................................14
3.1. Analysis......................................................................................................................................14
3.2. Conclusion..................................................................................................................................24
3.3. Recommendation........................................................................................................................25
Reference...................................................................................................................................................26
Addis Ababa Bottle & Glass Share Company is a manufacturing company located in Ethiopia;
Addis Ababa, Kolfe koraniyo Sub-city, and Woreda 13 and with the area of 81,000 care. The
company is mainly working in Glasses & Bottles business sectors. It was established in 1965 EC
with 10.5 million birr investment capital by private investors of Ethiopian in collaboration with
Americans.
As the case with other manufacturing companies in the country, AABGSC had been under the
government custody, ministry of industry, since 1967 EC in the category of alcohol and
beverages and later on under the cement corporation. After 1983 EC, the company was under the
Privatization and Public Enterprises Supervising Agency having delegated board of directors.
Following its’ privatization, the company had been under the Bazeto Industrial & Trading PLC
since 2002 EC. The company was again established as Addis Ababa Bottle & Glass SC in 2004
EC according to the Ethiopian Commercial Code. Since July 2007 EC, the share company has
been managed through a joint venture between Ethiopian and Chinese investors.
It is obvious that the establishment of any factory is not only for the profit of the owners. That
means they are supposed to contribute for the wellbeing of the society. Regarding to this
AABGSC is being in a position to contribute to the society by building school, Churches, and
administrative offices for the kebele.
AABGSC has organized with four major divisions i.e., Operation, Support, Corporate & Project
Management and Finance & Commerce division. As per the assignment of this course we were
selected this factory to visit how its operations are undertaken visa vise actual facts. Thus,
different department heads help us to understand the overall actual practices undertaken in the
Company and we have interview questions for Administrative service Manager (Miss Alem) and
for the Production Manager Mr Solomon.
In recent decades, the scientific and technological revolution in all fields has led to enormous
changes in the science of glass and glass-making technology. Glass manufacturing is a high-
volume process, during which large substance quantities are transformed into commercial
products, and significant amounts of non-renewable resources and energy (i.e., thermal fuels and
electrical power) are consumed (Nadine, N., 2016) & (Mario, et al, 2017).
Glass is a material present in everyday life since primitive times. Obsidian glass, originating
from volcanic activity, was used to make tools due to its hardness. These natural glasses, which
result from the cooling of molten rock, or lava, contain a wide variety of components, including
alkali, alkaline earth, and transition metal oxides. There is still no consensus about which ancient
civilization made glass for the first time. In every case, however, silica is found to be the major
constituent of these materials. During more than 5000 years of glassmaking, the glass
applications were largely expanded, and today it is an indispensable material in modern society,
used in many fields such as communication, automotive engineering, architecture and energy
production (Lima1 , F et al., 2018).
According to Mario et al (2017) during the glasses manufacturing process, elements from the
raw materials form a new random network that is linked together by oxygen bridges. Thousands
of diverse chemical compositions can be made into glass, and their different formulas affect the
mechanical, electrical, chemical, optical, and thermal properties of the finished product. Even if
glass manufacturing depends mainly on the finished product, processes have a common origin:
the melting of required resources.
In Ethiopia, there are only four glass and bottle factories– Addis Abeba Bottle & Glass Factory,
Ethio Hanssam International Plc, Daylight Applied Technologies and Juniper Glass
Manufacturing. From these factories the largest one, Addis Abeba Bottle and Glass Factory has a
production capacity of 30,000tn of glass sheet and bottles annually. The company has an
expansion project, which is expected to increase the production capacity by 50tn a day at its –
factory site in Asko (Fortune, 2020).
The main objective of this project is to investigate and understand the manufacturing practices of
Addis Ababa Bottle and Glass Share Company. Specifically, this project tries to,
Analyze theory practice gaps and forward conclusion and possible recommendations.
1.4. Methodologies
Both primary and secondary data were collected from the possible sources using interview, field
observation and document reviews. Thus, the group tried to prepare interview questions and were
asks concerned bodies. In addition, the whole group members tried to observe the overall
practices of the company and have some photos. Documents prepared for other purposes were
used and internet sources are other secondary sources of information.
Simple statistical tools like tables, charts and figures are used to make the analysis parts of this
document.
Often, we will treat the design of products and services, on the one hand, and the design of the
processes which make them, on the other, as though they were separate activities. Yet they are
clearly interrelated. It would be foolish to commit to the detailed design of any product or service
without some consideration of how it is to be produced. Small changes in the design of products
and services can have profound implications for the way the operation eventually has to produce
them. Similarly, the design of a process can constrains the freedom of product and service
designers to operate as they would wish (Nigel, S., et al, 2010).
In the past few decades, the use of glass in buildings has remarkably increased. As a result,
several transparent buildings have been constructed, in which the materials have almost
disappeared. Durability, safety, appearance, and efficiency of transparent buildings can be
improved through continuous refinement of designs, replacement of aged elements, prompt
repair of damaged protective coatings, and greater exploitation of double-sided screens (Fatemeh.,
P, 2016).
Control and maintenance of inventory is a problem common to all organizations in any sector of
the economy. The problem of inventory management is to maintain adequate, but not excessive
levels of inventories. Financially, inventories are very important to manufacturing companies. On
the balance sheet they usually represent from 20 to 60 percent of total assets when inventories
are reduced, their value is converted into cash, which improves cash flow and return on
investment. Also, there is a cost of carrying inventories, which increases operating costs and
decreases profit of the company. (Arnold, 1991:141). Hence, good inventory management is
essential for manufacturing organizations. You may think that managing inventory is an easy job.
But, as your manufacturing business continues to flourish and the demand for your products
skyrockets, you will find yourself dealing with difficulties. Inefficiencies and inaccuracies in
The plant layout is a very critical part of running an efficient and cost-effective business. All
work areas, production lines, material storage facilities, etc. should be designed to perform to the
highest rate and the corresponding shortest cycle time. When designing a plant layout, it is
necessary to take into account all the functions within the business. The design must include not
only the needs for the present business levels but should also have provisions for future
expansion. This is included to avoid frequent and costly changes to the design as demand
increases. Plant Layout is the physical arrangement of equipment and facilities within a plant. i.e.
the grouping of equipment and operations in a factory for the greatest degree of efficiency. The
Plant Layout can be indicated on a floor plan showing the distances between different features of
the plant. Optimizing the layout of a plant can improve productivity, safety and quality of
Products. Unnecessary efforts of materials handling can be avoided when the Plant Layout is
optimized (Kadane, M and S. G. Bhatwadekar, 2011).
Quality is a universal value and has become a global issue. In order to survive and be able to
provide customers with good products, manufacturing organizations are required to ensure that
their processes are continuously monitored, and product quality is improved. Manufacturing
organization applies various quality control techniques to improve the quality of the process by
reducing its variability. A range of techniques are available to control product or process quality.
These include seven statistical process control (SPC) tools, acceptance sampling, quality
function deployment (QFD), failure mode and effects analysis (FMEA), six sigma, and design of
experiments (DoE) (Hairulliza, M et al, ND). According to (Krakowiak-Bal and Salamon, 2011)
stated in Miroslav, P et al (2016) The process of continuous quality improvement in
organizations requires the active use of management tools by organization managers in order to
improve the quality of production. Nowadays, there are many quality management tools, so
selecting the appropriate tools is not always easy Statistics has a unique place in the modern
society.
In today’s world, the economic growth rapidly in industrialization has been given a significant
impact of distributions of income and quality of life it is also led in enhance the number of
workplace accident in manufacturing industry and in the manufacturing industry, workplace
accident is cannot be avoided and it can be cost billions of money each year (Noor Aina Amirah,
2013).
Fierce competition in today’s global markets, the introduction of products with short life cycles,
and the heightened expectations of customers have forced business enterprises to invest in, and
focus attention on, the relationships with customers and suppliers (Simchi-Levi et al., 2000).
Supply Chain Management (SCM) has become part of the senior management agenda since the
1990s. Executives are becoming aware that the successful coordination, integration and
management of key business processes across members of the supply chain will determine the
ultimate success of the single enterprise (Van der Vorst, 2000). According to Christopher (1998)
businesses no longer compete as solely autonomous entities, but rather as supply chains. The
Layout
strategy
Quality
Control
Product Line
Scheduling
3.1. Analysis
As we can see from table 1 the factory produces 30 types of products with different features.
To understand clearly about the production process of the factory let’s see the following chart.
Glass consists mainly of silica, obtained from the company’s own sources of sandpits, quarries.
This sand is washed and sifted to remove shells, stones and exceptionally large grains of sand,
before it is mixed with other materials which control the color and other properties, and lower
the 1730o C melting point of pure silica.
Cullet
Recently two glass manufacturing companies joined the industry; thus demands for Cullet
increased. Similarly silica sand and Marble sources are not………….
The mixture of ingredients to make up the glass (silica, Na2CO3, CaCO3 and recycled glass,
together with small quantities of various other minor ingredients) are mixed in a rotary mixer to
ensure an even mix of ingredients and fed into the furnace.
Weighting the materials, mixing materials and finally transporting to the next stage is the major
activities expected from batching and mixing stage of the company. Thus, the department control
the overall balance of inputs should be mixed and transported to furnace room. The following
figures shows us batching rooms and the technologies utilized to monitor the overall mixing and
transportation process of inputs.
Batch Room
Melting
In the glass-melting furnace, the raw materials are heated to temperatures ranging from 1500 to
1700°C (2700–3100°F) and are transformed through a sequence of chemical reactions to molten
glass. The furnaces are generally large, shallow, and well-insulated vessels that are heated from
above. In operation, raw materials are introduced continuously on top of a bed of molten glass,
only for wool glass fiber production because of the electrical properties of the glass formulation.
The mixture is heated to 1500-1550o C, where the ingredients melt, various chemical reactions
take place and CO2 and SO3 are evolved.
Melting Machines
Forming
The molten glass is cooled to 1000o C in a drawing canal, and then drawn up a tower (the
drawing tower) where it is pressed into the desired width and thickness, and cools to 280o C.
Individual plates of glass are snapped off at the top of the tower and further cooled before being
put into storage ready for sale.
In this stage the actual bottle is manufactured with its expected shape, size, weight and expected
qualities. Under forming stage there are three major processes; settle blow, counter blow and
final blow.
Annealing
According to Wikipedia Annealing is a process of slowly cooling hot glass objects after they
have been formed, to relieve residual internal stresses introduced during manufacture. Especially
for smaller, simpler objects, annealing may be incidental to the process of manufacture, but in
larger or more complex products it commonly demands a special process of annealing in a
temperature-controlled kiln known as a lehr. Annealing of glass is critical to its durability. Glass
that has not been properly annealed retains thermal stresses caused by quenching, which
indefinitely decrease the strength and reliability of the product. Inadequately annealed glass is
likely to crack or shatter when subjected to relatively small temperature changes or to
mechanical shock or stress. It even may fail spontaneously.
The annealing lehrs are a further stage in the cooling process, where the bottles are reheated to
600o C and then slowly cooled to remove stress points and prevent the glass from becoming
brittle. In short, in this stage the manufactured bottles should have heat treatment through
conducting stress removal activities. And then the manufactured bottle can adopt the external
environment and became ready to use.
Quality Control
Strength measurement
Printing
This is a stage where any types of brands, promotional mixes and related labeling activities are
undertaking. If the customer wanted/allowed to be printed the necessary information on their
products, this section should perform the printing activities sufficiently otherwise, the final
product directly goes to packing stage.
It is the final step in the production process in which the final products are packed to dispatching
and ready for transportation or storage. Two packing alternatives are available; create packing
and shrink rapping. Packing room and printing room are close and may create some discomforts.
The main raw material of the factory used for their production process are Marble, limestone,
cullet, Sodash, and silica sand which have extracted from own sources and some are to be
purchased from inland and abroad suppliers.
They use fixed period inventory system which helps to control their inventories periodically.
There is no any plan to make a change in their current inventory control system and still now it is
manual.
AABGSC has a maintenance department with limited capacities. Due to this department
weakness plant 1 has been stopped for a long days and this leads to other additional costs.
In the case of this factory they have quality control department located in the production
department. There is no such quality control mechanism like Statistical Process Control. In the
factory there are different equipments that are used to control the quality of the glass products.
Count measure, strength tester, twist tester and so are important equipment employed by the
factory to ensure the qualities of its products.
To know the maintenance policy of the factory we were obtained information from Mr. Solomon,
and thus the factory use both corrective and preventive maintenance policies. The corrective
maintenance policy is used to maintain the machines while they breakdown during the
production process. The reason for the corrective maintenance policy is most of the machines
were purchased long ago and also the nature of the production creates inconsistency in the
Work safe in any factory has an extensive schedule of proactive inspection programs aimed at
providing employers and employees with information on how to make safe working
Handling glass has some risks that are the risk of sprain and strain injuries while doing manual
works. At AABGSC the employees are completely venerable for such types of risks specially
those workers who engaged on washing the cullet.
3.2. Conclusion
AABGSC privately owned factory was established in 1960’s to manufacture bottle and glasses.
The Share Company has 30 product lines with two plants. Plant one has manufacturing
capacities of 30 tons per day and Plant two has a manufacturing capacity of 50 tons per day.
We found that the factory has full production processing machines to produce bottle product
using Marble, limestone, cullet, and silica sand as its main raw material. Even if the factory has
two machines, we can understand it lacks automating the operation for maximum utilization
specially line 1. The operation of the factory is characterized by continuous production process
using product layout system. To run their production process there is quality control system and
maintenance service to have smooth production process but not supported by software
applications.
AABGSC is not limited for its profitability but also participate in the social aspects which will be
strengthen to the future because it is expected from the firms serve their community at large.
There is no such quality control mechanism like Statistical Process Control, but the factory tried
to control the weight, height, color, strength, shape and so on of the glasses with the help of
ordinary machines. They use fixed period inventory system which helps to control their
inventories periodically. There is not any plan to make a change in their current inventory control
system and still now it is manual. The factory has not risk and hazard control mechanisms and
this could make some negative consequence on the whole activities of the company.
Based on the above results, we are pleased to forward the following major recommendations.
The factory shall prepare sustainable risk protection mechanism and it is better to create
suitable & safe working environments for its workers,
There are no alternative sources of suppliers considered for cullet and thus, the company
shall give special emphasis for this and better to act accordingly.
There are advance glass manufacturing technologies available in the market especially
from quality control points so the factory better to emulate better technologies.
The factory better to strengthening its maintenance capacities and enable plant 1 to
deliver better product quantities.
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Interview questions for Addis Ababa Bottling and Glasses Share Company