1.Company, Plant / Factory Profile

Solen, one of Türkiye’s brave and innovative brands, conducts its activities to add value to the land on
which it was born and its people, through the brave investments it has made and the employment it has
provided.
Established in Gaziantep in 1989, Solen has been serving its rich product portfolio in the categories ofsnacks, children's products, gifts and treats with over 30 years of experience. Solen continues its
activities by focusing on food safety, human and quality with its innovative vision.

1Regional
ManagementsRegional Offices

Incorporating brands such as Biscolata, Ozmo, Milango, Boombastic, Luppo, Lokkum andNutymax, which have achieved formidable success worldwide, Solen exports over 200 product types
to over 120 countries from the USA to Belgium, from Japan to the Maldives. Solen also has regional
offices in Dubai, Algeria, Azerbaijan, the USA, Saudi Arabia, Germany, Russia and England; andregional directorates in the Levant Region, Canada, China, Latin America.

Making a difference in every work it performs with passion and not compromising its values, Solenmakes production at high standards for its consumers from all ages with its most of 2 thousand
employees in its 2 facilities in Gaziantep and Istanbul. Solen has become a pioneer in its sector andTurkish economy on Industry 4.0 with its dream factory of 140 thousand square meters located in
Gaziantep 4th Organized Industrial Zone having equipment and competencies considered as a rolemodel not only in Türkiye but also throughout the world. Solen is the first company in Turkish food2sector having R&D center under a single legal entity at 2 different locations with its R&D centers in
Gaziantep and Istanbul. Ranking among the top in all lists in its sector both in Türkiye and the world,
Solen ranked 54th in Candy Industry TOP 100, one of the most important candy lists in the world.
Solen was awarded with the “Snack of the Year which Increased its Reputation Most” award in “SnackSector” category in “The ONE Awards Integrated Marketing Awards” which was organized by thecooperation of the marketing magazine Marketing Türkiye and market researches company
AKADEMETRE and which measures the increase in the reputation of the brands by observing theactivities of them within the year, and with the “Special Award” in Global 100 Awards organized byPlatin Magazine with its works in Industry 4.0 field, and it ranked second among the most favorite
companies in “Biscuit - Chocolate” category in the survey of Capital Magazine.
From holidays to special days, Solen sweetens life with flavors suitable for different tastes for every
moment of the day, and continues its efforts to turn every moment into a celebration.

1.1.Production Range,Process Technology,Management Organization and StuffinStructure
1.1.1.Production Range
Solen product family is full of amazing tastes. Covering a wide range from snacks to gift brands, fromkids products to Turkish delight, it offers a visual feast chocolate lovers. Some of our brands;

Diversifying its products under the scope of Solen with Maxbar , Milango and Octavia brands in thetreats and chocolate gifts category, Ozmo in kids products, Biscolata in filled cookies and coatedcrackers, along with Winergy and Duomax in chocolate covered snacks, Mojee in candies, thecompany is keen on its mission as a pioneer brand of today and the future, creating value for all itssnareholders.
31.1.2. Process Technology
Our key processes are changing for product variety.We have cooking and non-cooking process.For
example;while producing wafer,respectively; first dough is prepared, baked in the oven, cream coated,cut off,chocolate coated, cooled and packaging.While producing chocolate, patterns are made withdepositors, pouring chocolate into molds,cooled and packaging. So;Solen has a large equipment
variety. In 2 floors; there are 59 lines, which are 1 to 15 years old. All lines are included inAutonomous Maintenance and A lines are included Planned Maintenance applications.
Solen uses the advanced technology. Solen is in partnership with many of the world’s leading
companies in this regard.Bosch,Sollich,Schubert,Yaskawa,Azo,Schaefer,Rheon…
At the same time, it also manufactures its own machines.When this machines are producing,Solenengineers are designing with “zero accident,zero breakdown and zero customer complaint”
philosophy.

1.1.3. Management Organization
Below is the organizational chart that shows the board and directors of Solen Chocolate. The Board
consists of 6 members and one chairman.

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As seen in figure, TPM department reports to the general manager.

1.1.4. Stuffin Structure
Solen Chocolate Gaziantep Plant employs more than 2000 employees; with 267 white collar includes
102 engineers and 2096 blue collar.
Blue collars are divided three.Production foreman,operator and worker.Production foremans are
generally working more than 10 years at Solen,they are autonomous maintenance leaders and they
support planned maintenance,kaizens. Operators are supporting autonomous maintenance,plannedmaintenance and kaizens.Workers are hanging F-Tag,support some autonomous maintenanceactivities.
Operations are generally running non-stop with 3 shifts operating 6 days a week. Employees arerequired to work 45h/week.
2.Milestone on the Journey of Manufacturing Excellence
2.1.Solen and TPM
Made investigations in order to achieve and provide our policies, strategies and our values, we saw theTPM model. We decided to work together under the roof of TPM, to go on continual improvement andeliminating our hidden and non-value added activities with learning organizations.
As seen above Solen has a large equipment variety. It is important to have reliable processes tomanage lean manufacturing. Before TPM, machine operators and maintainers did not know todifferences between normal and abnormal situation for their machine. Breakdowns were repaired bymaintenance staff.
5We considered all these loses, we decided to start the TPM. We kicked off at İstanbul Plant in2015,after that Gaziantep Plant kicked off in 2018. Our activities began with 5S and we established 8Pillars. All activities are continious under the roof of TPM.

After TPM with the organized technical trainings, operators can understand the reasons ofbreakdowns, abnormalities and deterioration. Now our operators and maintenance teams believe, withdaily autonomous controls and planned maintenance, zero breakdown and zero defect targets can beachieved.
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Most important of our achievements we managed with TPM is a developed top-down and bottom-up
approaches to deploy our strategies.

Theoric & Practice Educations

Gemba Tours with Senior Management

Kaizen Activities

Consultant Visits7

3.Benefits Achieved
3.1. Tangible Effects••Cost: Conversion cost was reduced by 15.7% at the end of 2021 compared to 2018. Althoughlabor, raw material and all costs have increased at a high rate due to the economic crisis in
2022, the increase in conversion cost has been kept to a minimum with the Kaizen studies. At
the same time,sales increased 738%.We have reduced our electricity and gas consumptions.

••Productivity: We have decreased our productivity by 17,9%. Machine conditions have been
restored to basic conditions and improved through Kaizen. We have improved OEE values of
our all machines in factory by 7,75%.

••Quality: In the last 5 years, we have gained new customers with TPM activities. We
decreased our customer complaints by 47,8%. We accepted social media about customer
complaint since January 2022,so customer complaints started to increase.

As a result; we had good cost savings and improvement in company culture.

3.2.Intangible Effects

Information sharing and communication development in both horizontal and vertical hierarchicalrelations.
•Moral: Together with each training, suggestions from blue collars increased. With team work,
the dialogue between personnel and managers improved.

•People: We have increased information and skill levels of all employees.

•Increasing the awareness of all employees with visual management.

•Being conscious of the improvements made, replication.

•Development of knowledge, skills and confidence of employees.

•Develoment in performance measurement system.

•Being concious of loses and decreasing loses with teamworks.

•Both white and blue collars have improved in determining root causes of problems withutilization of analysis methods. "Zero Defect", "Zero Breakdown","Zero Accident"belief isnow common.

As a result, we had good improvement in company culture.

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4. Key of our Manufacturing Excellence
In order to achieve our targets, we first aim to have the following principles into our company culture
with the help of TPM methodology;•

Deployment of SHE conscious to all workers•

Active participation of all employees in improvement studies•

Expansion of Team Work among employees•

Defining losses correctly and selection of correct Kaizen subjects•

Increase in creativity•

Defining root causes of problems correctly•

Taking quick actions•

Expansion of standardization

5. Future Plans
Our future plan is maintaining continuous improvement with the participation of all employees. Alsoin 2023, we want to receive TPM Excellence Award. We will continue TPM activities throughConsistency Award up to the World Class Manufacturer Awards.
For this reason, we will add more committees into our TPM Organization such as, SCM – Supply
Chain Management Committee etc. Our main aim is to build "Solen Production System".

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6. Achievement Record
Gaziantep Plant KMI&KPI Targets

UnitYear
2018
(BM)

Year
2019

Year
2020

Year
2021

Year
2022

Year
2023

Year
2024

TPM Effect as Seen From Quality Wiewpoint (Q)Q

Customer Complaints

Number/ Year

TargetActual

0529

05000
320

0301

07540683

0-Million TL

TargetActual

1336
1336

1603
1700

1870
1995

2593
2896

4923
6441

7730
11199

13438
-%

TargetActual97
97

97,597,598
97,998,598,199
98,9100
96,6100-

TargetActualTargetActual00066,000068,000057,000037,000037,0000
700-

TargetActual223216217232216

21,98

2-

TargetActualTargetActualTargetActual5656,78080
1865
1865

5555,4
83
82,10
1625
1775

54
54,7
85
83,40
1400
1687

52
51,7
85,50
84,50
1250
1393

49
50,6
86,50
85,02
1000
1320

46,5
46,8
87
86,30
750
892

46,387,20
550-

TargetActual

3,10
3,10

2,80
2,90

2,60
2,85

2,40
2,70

2,15
2,46

1,39
1,86

1,11
-

TargetActualTargetActualTargetActualTargetActual

2800
2848
5,65
5,65
814
814
75
76,30

2772
2592
5,50
5,51
800
864
72
74

2600
2490
5,25
5,30
850
925
80
78,10

2500
2401
5,15
5,14900
904
76
77,68

2352
2594
4,50
5,65
870
844
77
73,40

23042581
44,00825
825
75
77,30

2200
3,20780
69,30-

TargetActual

279
279

558
693

1116
1090

2232
19893232
3597

5685
5834

8750
-TargetActualTargetActual0,160,15
4,174,170,150,15
4,10
4,260,150,17
44,75

0,150,15
4,70
5,02

0,15
0,15
4,50
3,80

0,140,15
3,60
3,170,135
3,25-

TPM Effect on Cost (C)CSales
TPM Effect on Delivery (D)

DKMI

Production Plan Compliance Rate
TPM Effect on Safety (S)S

Major Accident

numberMinor Accident (LTA)

Number/ YearTPM Effect on Moral (M)M

Turnover%

TPM Effect on Production (P)P

Productivity

man.hour/tone

OEE%

Breakdown (A&B Lines)

Number/ YearTPM Effect as Seen From Quality Wiewpoint (Q)Q

Rework Loss%

TPM Effect on Cost (C)KPICConversion Cost$/tone

Yield Loss%

Energy Consumption (Electricity)

kwh/tone

Energy Consumption (Gas)m3/tone

TPM Effect on Moral (M)M

Employee Suggestion (Cum)number

TPM Effect on Enviroment (E)E

Carbon Emission

ton CO2/tone

Water Consumption

m3/tone10