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Zero DefectManual



Zero Defect

Manual



MATERIAL SUPPLY

PRODUCTION

PRODUCT DISTRIBUTION AND

STORAGE

CONSUMER - MARKET

PRODUCT AND SYSTEM DESIGN

RECEIVING AND STORING INCOMING

RAW MATERIALS AND PACKAGING

MATERIALS



Yıldız HoldingZero Defect Manual

Publisher© Northstar Innovation

Content Preparing / Editor

Holding Global Quality Assurance & Control Group Directorate

DesignNewpage Advertising

Tomurcuk Sk. İzmen Sitesi A2 Blok B1 Şişli - İstanbul

EditionElma Basım

Halkalı Cd. No.164 B-4 Blok Sefaköy - İstanbul

1.Edition March 2014R.00.14

All publication rights reserved.

No text and graphics can not be used even if the source is cited.The manual can not be copied without permission of the publisher.

Northstar InnovationEndüstriyel Yatırımlar ve Danışmanlık A.Ş.

Kısıklı Mah. Ferah Cd. No.1Büyük Çamlıca / Üsküdar / İstanbul



Based upon our quality understanding dating back to 1944, in order toperpetuate our ‘we are number one in quality’ value:

• We offer consumers great products with great quality withinarm’s reach at a great value and build strong partnerships

with customers through providing best in class service.

• We track best-practices in the markets we operate and we strive to

INTRODUCTION

Yıldız Holding adheres to 6 main values in accordance with its vision,“Being a leading food and beverage company that satises and makeshappy its consumers, customers, employees and shareholders at all

times”. One of these six values, ‘we are number one in quality’ plays asignicant role in putting the other ve values into practice.

OUR CUSTOMERS COME FIRST!WE ARE NUMBER ONE IN

QUALITY!

WE DERIVE OUR STRENGTH FROMCHANGE!

WE SUCCEED TOGETHER!WE ARE COMPETITIVE!

WE ARE RESULT-ORIENTED!



For this purpose, our quality mission has been updated as follows:

“We make our consumers happy every day with the same quality in every

products”

“We make our employees proud by enabling them to produce high quality

products”

“ We protect our products and brands against risks and satisfy our share-

holders”

‘Our Quality Manual’ has been prepared as a signicant resource for

putting our updated quality mission into practice.

In terms of quality, we aim to produce our products in accordance with the

specications, and offer our consumers the same Ulker value and quality in

every package. For our employees, all of whom play a signicant role in

achieving this target, we are providing opportunities to perform great work

in line with Ulker principles and values, and to establish systems that

enable their development as well.

As part of our Sustainable Quality understanding, the common concepts we

have adopted are “product” , “human” , “system” and “value chain”. In

this respect, we have established Central Quality Systems in order to set

common quality procedures and standards in our companies, and enable

each work department to be managed by the same principles.

HUMAN

VALUE

CHAIN

PRODUCT

SYSTEM



YILDIZ HOLDING QUALITY ROAD MAP

Improving

“Zero Defect”Quality Culture

Multifunctional

responsibilities

to increase engagementto quality

Structuring communicationplatforms to

Win Together

Building Capability

at every level

Quality Awards

DEFINE & GOVERNwith

OFFICE of SPECS

CONTINUOUS

IMPROVEMENTwith

TOOLS & KPI’s

TRAINING &FACILITATION

Issuing Specifcations

for Product, Process,Raw Material & Packaging

Approval and Change

Control for Specs;

Central Database

Zero Defect Manual

for Food Safety, Product

Control & Lab

Audit with:

AIB Audits

Product AuditsOfce of Spec ComplianceAudits SystemCertications

(BRC, IFS, ISO)

MeasuringPerformance byScorecards &

Quality Index

Common

Improvement

Projects



1) Dene & Govern with Ofce of Specs

As the rst step of our Quality Road Map, the Ofce of Specs (OoS)assumes the role of meeting quality standards, which offer ourconsumers the same Ulker quality in every package and maintain their

satisfaction through the denition and management of our specications

and guidelines.

Contributions of the Ofce of Specs (OoS) to our products and business:

1. It will enable quality continuity in products offered to consumers.2. It will enable a reduction of costs without compromising product

specications.

3. It will maintain the consistency of product design and help us win outover our competitors.

Aiming to succeed together in the journey towards ‘Zero Defect’ in ourproducts, the responsibilities to be assumed by the Ofce of Specs(OoS) are as follows:

• Product specications that will provide the same quality in eachpackage have been dened, maintained and put into practice with thegoal of achieving consumer satisfaction.

• It will be possible to adjust cost-increasing items of product recipeswithout causing any adverse results in terms of quality.

• It will follow the adjustment process of specications related toproducts, and provide guidance in performing the required

arrangements.

2) Continuous Improvement with Tools & KPI’s

At all stages, from the control of Raw Materials and Packaging Materialsto the delivery of our products to end users, signicant quality indicators(Incoming Raw Materials and Packaging Materials, Products in

Quarantine, Re-work and Scrap, Consumer Complaints, AIB Audit, ProductAudit) are monitored and reported via scorecards on a monthly basis.Therefore, sections that require development are determined easily, andaction plans are prepared and implemented with operation teams



3) Training & Facilitation

The rst two steps of our quality strategy, Ofce of Specs (OoS) andComputation - Continuous Improvement are based on the Human factor.Achieving the Zero Defect target in line with our motto «Quality for a happymoment» depends on all of our employees. Therefore each employee is

involved in our Quality Journey, and quality awareness is increased andcompetencies are gained.

Each employee must:• Know how effective he/she is in product quality in line with

our Zero Defect target.• Possess the knowledge/competencies necessary to affect

product quality in his/her own responsibility area.

• Know what to do in case of a problem.

Each employee must:• See the effect of his/her work on the whole.

• Understand the general quality performances (Scorecard,

Quality Index).

• Know about problem solving.

• Work in small teams and produce solutions.

When the knowledge and competencies required for all employees are

provided, the employee:

Is involved in the value chain.

Is informed about assessments related to quality and conclusions.

I d f hi /h l d ibiliti i lit

K N O W L E D

G E

C O M P E T E N C

E



MATERIAL SUPPLY

1. 1. BEING A YILDIZ HOLDING SUPPLIER

a. Our Expectations From Suppliers

b. Supplier Quality Systems

1. 2. SUPPLIER SELECTION AND SUPPLIER APPROVAL PROCESS

a. New Supplier Selection i.Supplier candidate

ii. Test sample approval

iii. Pre-requirement audit

iv. Audits according to risk group

v. Approval-conditional approval-rejection

b. New Materials and Material Replacement Approval Process

i. New materials/material replacement request ii. Approval of new/revised materials

iii. Preparation, revision and publishing of specications iv. New material/revised material order stage

1. 3. RISK ASSESSMENTa. Assessment of Material Risks

b. Identication of Supplier Risks

1. 4. SUPPLIER AUDITSa. Pre-requirement Audit

b. Regular Audits According to Risk Groupc. Assessment of Audit Results

i. Pre-requirement audits

ii. Regular audits according to risk group

1. 5. MATERIAL SUPPLY PROCESS

a. Raw Material and Packaging Material Specications

i. Preparation, publishing and communication of specications to suppliers ii. Approval of specications by suppliers b. Incoming Material Quality Control Process

i. Quality plans, analysis certicates ii. Transportation conditions

iii. Incoming material control assessment

c. Non-conformities Related to Materials

i. Rejection Situation: communication with the supplier and action tracking

ii. Presence of a problem during production stage related to approved raw material: rejection, risk assessment, communication with supplier, action tracking iii. Receiving consumer complaints related to raw material and packaging material, communication with supplier, action tracking iv. Communication

v. The effect of non-conformance on performance of related suppliers

Page

CONTENTS

1 st SECTION

023

025

033

036

043



CONTENTS

1 st SECTION

1. 6. PERFORMANCE CRITERIA, CONTINUOUS ASSESSMENT AND DEVELOPMENT PROCESS OF SUPPLIERS a. Performance Criteria of Suppliers

i. Audit scores of suppliers ii. Rejection / acceptance ratio of raw materials

iii. Closing time of CPAs iv. Number of supplier-related consumer complaints v. Communication of performance results to suppliers b. Continuous Assessment and Development Process

i. Non-conformance management ii. Continuous improvement

iii. Strategic partnership

1. 7.CONTRACT SUPPLIER PROCESS

2. 1. VEHICLE CONTROL

a. Physical Conformance of Vehicle

b. Control of Vehicle Conformance Documents

c. Transportation Temperature Control

d. Control of Supplier Analysis Certicatee. Product Control on Vehicle

f. Unloading the Vehicle

g. Return of Non-Conforming Vehicle

h. Receiving Conforming Materials into Warehouse

2. 2. CONTROL OF RAW MATERIALS AND PACKAGING MATERIALS

a. Quality Standards of Raw Materials and Packaging Materials

i. Specications ii. Quality plans

ii1. Determination of parameters/analysis/frequencies ii2. Internal and external analysis process ii3. Verication plans ii4. Dening in the plans what to do in non-conformance situations ii5. Preparation, approval, brieng, publishing and review b. Analysis and Control Process

i. Sampling

i1. Protection of raw materials and packaging materials i2. Identication i3. Delivery of samples to laboratory under appropriate conditions ii. On-site controls

ii1. Import material control

MATERIAL SUPPLY

2nd SECTION

Page

RECEIVING AND STORING INCOMING RAW MATERIALS AND PACKAGING MATERIALS

051

056

063

070



RECEIVING AND STORING INCOMING RAW MATERIALS AND PACKAGING MATERIALS

2nd SECTION

CONTENTS

iii. Analysis certicate control iv. Analysis

iv1. Internal analysis iv2. External analysis iv3. Analysis methods

iv4. Conrmation analysis

2. 3. APPROVAL OF RAW MATERIALS AND PACKAGING MATERIALSa. Final Approval to Receive Materials

i. Responsibilities

ii. Identifying in the system iii. Practices to be performed in warehouse b. Rejection Decision

i. Non-conformance with specications

ii. Responsibilities iii. Identifying in the system iv. Communication / notication v. Things to do in warehouse

v1. Identication v2. Separation v3. Rejection/Disposal vi. Continuity of production vi1. Production suspension in cases of material rejection

vi2. Assessment of material risk vi3. Handling during production

vi4. Conditional acceptance

2. 4. STORAGE

a. Quality and Food Safety Standards

b. Non-Conformance Situations

i. Communication in case of non-conformance ii. Taking precautions

iii. Improvement and correction of non-conformance c. Shelf Life Tracking

i. Planning

ii. Product control

iii. Blocking

iv. Re-evaluation of shelf life

2. 5. CONTINUOUS IMPROVEMENTa. Audits (Internal and External Audits)

b. Corrective Actions

c. Scorecard

d. Trainings

Page

081

088

094



3rd SECTION

CONTENTS

PRODUCTION

3. 1. PREPARATIONS PRIOR TO PRODUCTION

a. Publishing of Specications

b. Preparation of Quality Plans

i. Preparation of quality plans according to specications:determination of control parameters, their frequencies and who will perform them

ii. Determination of how and where to record the controls iii. Approval and publishing of quality plans iv. Amendment situation (when and how to amend, how to approve and publish) c. Publishing of HACCP Plan

d. Management of Production Tests

e. New Line - Equipment Start-Up Activities

f. Production Plan

g. Reception and Preparation of Raw Materials and Packaging Materials

i. Receiving materials

ii. Keeping records and traceability

3. 2. PROVISION OF FOOD SAFETY IN PRODUCTION

a. Pre-Requisite Programs

i. Foreign material control program ii. Personnel hygiene

iii. Cleaning program

iv. Maintenance program aimed at quality and food safety v. Pest control program

b. HACCP Program c. Allergen Management

d. Internal Audits

e. Food Defense

3. 3. LABORATORY MANAGEMENT

3. 4. PROCESS QUALITY CONTROL a. Importance of Process Control to Product Quality

b. Access to Quality Plans, Completion of Controls

c. Controls on the Line

d. Traceability Records

e. Controls in Laboratory

f. Provision of Process Quality

i. Measurement, analysis ii. Keeping records and traceability

iii. Assessment: Green/Yellow/Red iv. Clear and easy-to-understand denitions in specications g. Taking Actions as a Result of Controls

i. Green

ii. Yellow

iii. Red

Page

101

107

134

142



3rd SECTION

CONTENTS

h. Specication Non-Conformities: Red

i. Suspension of the line ii. Authorization iii. Separation of products and semi-nished products iv. Notication of relevant individuals

v. Correction of problem and resuming production vi. Control of blocked products vii. Records

i. Specication Non-Conformities:Yellow

i. Correction of problem ii. Failure to bring results into the Green category iii. Records

3. 5. FINISHED PRODUCT QUALITY

a. Control of Finished Product on the Lineb. Production Scoring

c. Warehouse Scoring

d. Sensory Test Program

e. Witness Samples

f. Shelf Life Controls

g. Contract Supplier Products Controls

3. 6. POST-PRODUCTIONa. Delivery of Products to Warehouse

b. Return of Remaining Materials

c. Rework Product Management

d. Suspension of Production - Protection of Products and Materials

e. Release of Convenient Products According to Process and Finished Product Controls

3. 7. NON-CONFORMANCE MANAGEMENT

3. 8. INCIDENT SYSTEM

a. Examination of Incidents

b. Incident Resolution

c. Monitoring and Continuous Improvement

3. 9. CRISIS MANAGEMENTa. Withdrawal and / or Recall of Products

b. Functions Required for Recall Management Process

3. 10. CONTINUOUS IMPROVEMENT a. Quality Scorecards

b. Quality Index

c. Audits

i Food Safety audits

Page

163

175

179

183

188

194

PRODUCTION



PRODUCTION

d. Continuous Feedback

e. Communication of Results and Actions

i. Daily Zero Defect meeting ii. Weekly quality meeting

iii. Meeting of monthly quality presentation

iv. Consumer complaints meeting v. Reports

f. Monitoring of CPA (Corrective and Preventive Action) Process

g. Continuous Improvement

3. 11. PROJECT MANAGEMENT 3. 12. TRAINING, CERTIFICATION & COMMUNICATION a. Training & Certication

i. Realizing of trainings ii. Measuring and validation of the effectiveness of trainings iii. Training role in KPI's

b. Communication

4th SECTION

PRODUCT DISTRIBUTION AND STORAGE

4. 1. PRODUCT OUTPUT PROCESSES

a. Receiving Products from Production Department

b. Traceability Records

c. Storing and Preparation for Shipment

4. 2. PRODUCT SHIPMENT

a. Specications, Cleaning and Control of Shipment Vehiclesb. Proper Loading of Products

c. Warehouse Output Rules for Products to be Shipped (FIFO/FEFO)

d. Rules Against the Shipment of Mixed Products

e. Traceability Records

4. 3. PRODUCT STORAGE

a. Importance of Storage to Product Quality

b. Receiving

c. Conformance with and Tracking of Storage Conditions Stated in Specications

d. Storage and Food Safety Standards

e. Management of Products Damaged During Storage

f. Return Products

CONTENTS

3rd BÖLÜM

Page

211

217

229

232

237



4. 4. DISTRIBUTOR STORAGE PERFORMANCE TRACKING

a. Audits

b. Assessment of Results

c. Identication of Corrective Actions

d. Improvement

e. Trainings

5th SECTION

CONSUMER - MARKET

5. 1. PRODUCT QUALITY IN EACH BITE AT ALL TIMES: ZERO DEFECT

5. 2. PRODUCT QUALITY CONTROLS IN THE MARKET

5. 3. CONSUMER COMPLAINTS

a. Recording Consumer Complaints

b. Investigation of Consumer Complaints

c . Conducting of Consumer Complaints to BU's

d. Determining Actions and Informing the Consumers

e. Tracking on Quality Index as Criteria of Performance

6. 1. PRODUCT / PACKAGING DEVELOPMENT PROCESS

6. 2. APPROVAL OF PRODUCT

6. 3. ESTABLISHMENT OF SPECIFICATIONS

a. Consumer Specications

b. Critical Limits

6. 4. PUBLISHING OF SPECIFICATIONS

a. Specication Content

b. Denitions of Green/Yellow/Red

c. Preparing Specications

d. Authorization & Responsibilitye. Approval Process

i. Obligatory approvals

ii. Assessments

iii Review and OoS approval


6th SECTION

4th SECTION


CONTENTS

Page

253

259

261

266

273

275

276

277



6th SECTION

CONTENTS

ÜRÜN VE SİSTEM TASARIMI

6. 5. QUALITY MANAGEMENT

a. Establishment of Standards and Plans for Consumer Satisfaction

b. Denition of Processes and Procedures

c. Approval, Publishing and Authorization/Responsibility

d. Document Management

i. Responsibilities ii. Preparation, approval, publishing iii. Access, archive, review iv. Putting into practice - compatibility

e. Conformance

f. Continuous Improvement

INSTRUCTION LIST

DEFINITIONS


APPENDICES

EXPLANATION

Page

290

299

305

This symbol means that each plant must have an

instruction according to the related section.

This symbol means that each plant must have a

record system according to the related section.

Explanations of the symbols in the manual are below :



QUALITYCAMPAIGNno debate - zero defect



MATERIAL

SUPPLY

1 st

SECTION



We promise our consumers the Ülker quality in every bite of our products!

In order to keep this promise we make to our consumers, together wemust keep alive the goal of "zero defect" throughout the value chain, at

every step from farm to the fork.

MATERIAL SUPPLY

1 st

SECTION



1 st SECTION R .

0 0 . 1

4



1. 1. BEING A YILDIZ HOLDING SUPPLIER

a) Our Expectations From Suppliers

In order for us to deliver the same quality in our products with every bitethroughout their shelf life, the rst step is to provide raw material and

packaging material quality. Our most important expectation from oursuppliers is that they adopt Ülker quality standards, ensure sustainabilityin these standards and create an environment of the highest cooperationin this area.

It is one of our fundamental expectations that the materials we receivefrom our suppliers meet quality and food safety specications. When

choosing their suppliers, all of the business units operating as part ofYıldız Holding look for specic criteria, such as production conditions and

accordance with specications as well as continuous improvement and

cooperation. Additionally, they want all materials to be in accordance withpertaining legislations and legal conditions.

All of the necessary features that need to be present in our products toachieve the quality that makes our consumers happy have been dened

within our specications. The expected quality features of raw materials

and packaging materials have also been determined and publishedalongside their specications.

It will be possible for us to meet the targeted level of product quality if allof the raw materials and packaging materials continuously have thefeatures dened in our specications.

Our suppliers are our most important partners in order to achievecontinuity in quality, maintain our risks at the lowest level and carry outcontinuous improvement.

Mutual quality programs will not only be conducive to increasedcooperation; they will also allow our suppliers to improve their ownbusinesses and achieve a competitive advantage in commerce

MATERIAL SUPPLY

1 st SECTION



In brief our expectations from our suppliers are given below:

-“Adoption of Ulker Quality Standards”

-“Compliance of Specications”

-“Continuous Improvement”

-“Cooperation”

b. Supplier Quality Systems The quality programs developed with our suppliers with the goals oflong-term, reciprocal cooperation and strategic partnership have beenassembled under the name Supplier Quality Systems.

With this program, our suppliers' risk evaluation, survey plans,performance tracking and action plans are determined. Mutual projectsthat will add reciprocal added value are carried out by this means.

Supplier Quality Systems are implemented for our processed raw materialand packaging material suppliers and are not applicable to agronomicpurchased to be processed from the main source. Our existing systemsare maintained for these materials, with consolidation efforts carried outthat will incorporate these suppliers as well. These products that remainout of scope are raw oil, raw wheat, raw hazelnut, vegetables, fruits, cocoaseeds, milk in dairy farms and milk collection centers, etc.

MATERIAL SUPPLY

1 st SECTION R .

0 0 . 1

4



1. 2. SUPPLIER SELECTION AND SUPPLIER

APPROVAL PROCESS

a. New Supplier Selection

i. Supplier candidate

An alternative or new supplier improvement process can be started forraw material and packaging materials for reasons such as purchasingdepartment, R&D departments or a related cost advantage to parties,

alternative supplier or product development. Suppliers with whomcollaboration will be carried out are expected to meet dened standards

based on the risk group and feature of the pertinent raw material andpackaging material. The subjects in evaluations of the standards aregiven below:

• Production conditions

• Level of accordance with the quality criteria related to the product• Measuring and analysis systems

• Quality and management systems

• Technology and information sufciency

• Collaboration

• Competence of employees and organizational background

These requirements are assessed and followed with the qualityperformance put forth in the preliminary assessment, discussion,visitation, inspection and supply process.

A material approval process is started, followed by the supplier approvalprocess, to study the sufciency of the raw materials and packaging

materials from suppliers found to be suitable as a result of thepreliminary assessment done with candidate suppliers.

Materials are not purchased from suppliers that are not approved as aresult of this process.

MATERIAL SUPPLY

1 st SECTION



“MATERIALS DON NOT BE PURCHASED FROM NON APPROVAL

SUPPLIER”

ii. Test sample approval

In order for a supplier to be approved, rst the necessary documents

must be obtained and the material must be approved. Informationregarding the material sample to be approved is recorded by purchasingsupervisors into the system, accessed by using the steps of thebiz.ulker -->

workow --> sample tracking system. (site is prepared inTurkish) The approval process is carried out by quality and R&Dsupervisors adhering to the steps of this system. At this point, the

preliminary requirement documents that will be requested additionallyfrom the supplier,

• such as the ISO 9001 and/or ISO 22000 or FSSC 22000 for low-risk

material suppliers,• or the BRC or IFS documents or AIB auditing report for medium- or

high-risk material suppliers,

• as well as legal permits and up-to-date analysis reports for their latestproducts completed within the past 6 months at most are requestedfrom all suppliers and examined.

iii. Pre-requirement audit

Suppliers whose test sample and other conditions are deemed suitableprogress to the preliminary requirement audit stage. For candidate

suppliers with whom cooperation has not been carried out, thepre-requirement audit is implemented as specied in the supplier audit

section. Suppliers who pass the pre-requirement audit receive conditional

approval status and material purchasing begins. According to the scoreand risk level of the material as determined by the pre-requirement audit,a risk audit is carried out in the period and category specied (max. 6

i 00 i S S i

MATERIAL SUPPLY

1 st SECTION R . 0

0 . 1

4



Material purchasing does not start for suppliers that do not pass thepre-requirement audit; a second test audit is conducted, and if theyreceive a suitability approval in this audit, material purchasing from thesupplier begins. If they do not receive a suitability approval as a result ofthe second audit, material purchasing from the supplier does not begin

iv. Audits according to risk group

These audits are divided into two groups for low-risk andmedium-high-risk suppliers. Supplier audits are carried out by Yıldız

Holding or contracted third party.

Suppliers are evaluated based on the results of the audit, and the actionsthat are required from the suppliers are determined.

The audit risk group for suppliers with whom cooperation has not yet beencarried out is determined according to the risk category of the material tobe purchased (See Section 1 Part 4 ).

Candidate suppliers that succeed at the risk audits earn the right to takepart in the approved supplier list.

MATERIAL SUPPLY

Supplier candidate --> Test sample approval -->

Pre-requirement audit --> Audits according to risk group

r



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MATERIAL SUPPLY

1 st SECTION R .

0 0 . 1

4



v. Approval-conditional approval-rejection

Approved Supplier: Suppliers who meet the criteria expected of them andreceive a satisfactory score in the audits. Yıldız Holding has a shared

approved supplier list managed centrally. List of approved suppliers is

located under the biz.ulker portal system to be seen by the businessunits. In order for any supplier to work with a business unit under thescope of Yıldız Holding, it must be on this list.

If a supplier featured on the approved supplier list is going to work with abusiness unit in the group other than the one it currently works with, noadditional approval procedure is needed. However, if a different material

is going to be purchased from the supplier, rst a risk assessment iscarried out for the supplier's material, and the necessary audit andapproval process is carried out based on the results of this assessment.

“Yıldız Holding works with the suppliers which are in approved supplier

list.”

Conditionally Approved Supplier: Candidate suppliers that pass thepre-requirement audit are considered to be Conditionally Approved

Suppliers until the audit based on material risk is carried out. Suppliersthat pass the audit based on material risk become approved suppliersand are added to the list of approved suppliers. Suppliers that cannotpass the material risk audit continue to hold conditionally approvedstatus. This status can be held for 6 months at the most.

For suppliers that cannot pass the pre-requirement audit, materials are

not purchased until they receive approved supplier status. Based on the

result of the tracking audit, the decision is made whether to buy materialsor not.

If suppliers featured on the approved supplier list fail the periodic audits

based on risk categories, they receive conditionally approved supplierstatus. This status can be held for 6 months at the most. Suppliers areasked to take action based on the unsuitable aspects communicated to

MATERIAL SUPPLY

MATERIAL SUPPLY

1 st SECTION



The supplier can only enter the approved supplier list once it receives asatisfactory score from an audit, and material purchasing can then begin.

Denied Supplier: Candidate suppliers that cannot pass thepre-requirement audit hold denied supplier status, and materials are not

purchased until they pass the pre-requirement audit. If conditionally

approved suppliers who pass the pre-requirement audit hold this status

for over 6 months, they are given denied status and material purchasing

is stopped.

If approved suppliers that are given conditionally approved status cannotreceive approved supplier status again within 6 months, these suppliers

also become denied suppliers and materials are not purchased until theyreceive approved supplier status again.

b. New Materials and Material Replacement Approval

Process

i. New materials / material replacement request

All requests received regarding new materials (Supplier, R&D, Production,

etc.) are transferred to supervisors at the purchasing department. Thepurchasing authority has materials that have the desired features broughtand presents them to the R&D team for assessment.

If a change in any feature of existing raw materials and packagingmaterials is under consideration, R&D supervisors contact thepurchasing supervisors in order to search for suppliers and materials thatmeet this need.

ii. Approval of new / revised materials

New / revised materials approval process is carried out according to theR&D procedure. A report is generated according to the specications of

the supplied materials by taking opinions and with the approval of R&Dteam quality production maintenance and the relevant departments for

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If the purchasing of revised materials is going to be via a supplier that isnot on the approved supplier list, both the supplier and material approvalprocesses are implemented.

iii. Preparation, revision and publishing of specications

After production tests, if the product samples are approved by the R&Dteam, Yıldız Holding’s specication preparation process for new materials

is commenced. If any revision regarding any criteria of the current rawmaterial or packaging material is required, material specication revision

is prepared by R&D team.

After the specications prepared by the R&D teams for both newmaterials and revised materials are approved, they are published by theOfce of Specs (OoS) and communicated to related persons via an

informative email. Purchasing supervisors share the revision or the new

material specication with suppliers to guarantee the purchase of

materials that t the specications from suppliers.

iv. New material/revised material order stage

The purchasing process is started for new materials and revisedmaterials whose test samples are approved. However, if both the new

material and the revised material are purchased from a supplier that isnot on the approved supplier list, then the new supplier approvalprocesses detailed above are implemented and purchasing of the

material starts if approval is obtained.

First purchase order should be prepared for minimum amount to ensure

all attributes in specication for new or revised materials. Example:

Production plan is scheduled for small amount of material (a shift, a

batch, a few hours) according to where material used in and importanceof it. Amount of purchase order is increased if material performance is

convenient.

If there is any revision on material specication, Purchasing and Planning

i i i

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Example: Using interchangeably of the two equivalent raw material, usingin mix, making revision after stock expiry or not to use in any way.

MATERIAL SUPPLY

New / Revised Materials

Approved

Supplier

Unapproved

Supplier

Supplier Candidate

Test Samples Approval

Pre-requirement Audit

Audits According to Risk Group

Approval / Conditional Approval /

Rejection

Production Trials (Quality - R&D)

Incoming Materials Analysis(Quality - R&D)

Approval (R&D))

Material Supply ProcessMaterial Supply Process

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1. 3. RISK ASSESSMENT

Based on our suppliers' quality systems, their products and production

areas are inspected to carry out risk audits in order for the audits andassessments to be carried out based on correct criteria. Risk

assessments are performed under the material and supplier headings.

a. Assessment of Material Risks

In order to assess our suppliers' risks, rst the material risk is assessed

for the material that will be purchased. Risk assessment is done on abusiness unit basis with a shared point of view. Supplier Quality Systems

are implemented for our processed raw material and packaging materialsuppliers and are not applicable to agronomic purchased to be processedfrom the main source. Our existing systems are maintained for thesematerials, with consolidation efforts carried out that will incorporatethese suppliers as well. These products that remain out of scope are rawoil, raw wheat, raw hazelnut, vegetables, fruits, cocoa seeds, milk in dairyfarms and milk collection centers, etc.

First of all hazard of materials are determined (Chemical, Biological,

Physical).

Chemical hazard: Pesticides, Heavy metals, Toxins, PAH, Dioxins and

Other Chemicals

Biological hazard: Pathogenic bacteria, mold, yeast, viruses

Physical hazard: Foreign materials such as metal, stone, thread, nylon,

etc. that should not be found in the material.

Hazards are classied by determine of supplier process, plant process

and nal products, global and scientic data.

Material risks are classied according to the following lists:

L i k 1 i t

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For example;

• Milk: When determine the microbiological risk of milk and resultsof analysis, it has high risk --> 3

• Crystal Sugar: Because of the foreign materials problems and the

high amount used in the nal product, it has medium risk -->

2

• Vegetable oil: It has low microbiological and foreign material riskand also data about nonconformance is negligibly because of thatvegetable oil is low risk --> 1

*GMO and Allergens: These two dangers must adhere to legislations formaterials that are purchased. The suitability status is assessed viamaterials' analysis certicates and verication programs. Thus, these

dangers must not take part in the risk assessment.

*Extra calculations are not made for packaging materials. Packages that

come in contact with the nal product are dened as medium risk (2),

while other packages are dened as low risk (1).

b. Identication of Supplier Risks

After material risks are determined, the process of assessing supplierrisk, which includes material risk, begins. Supplier risk is determined byassessing the producer company's risk.

Supplier risks are calculated on the basis of the business unit byevaluating material risk, audit score % tonnage and endorsement information.

Material Risk: The value as determined by the Material Risk Assessment.

Audit Score: The result of the pertinent supplier's up-to-date auditperformed by Yıldız Holding or contracted third party.

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Percentage Tonnage: The % ratio, on a business unit basis, of the annualpurchasing amount of the related product out of the total amount receivedfrom all companies for the same material.

Endorsement: To assessment of earnings of companies which are in the

same incoming material categories

Approval supplier list is categorized as three group when the determine ofmaterial, audit, percentage tonnage and endorsement. These categoriesare given below:

1. Low-risk supplier

2. Medium-risk supplier3. High-risk supplier

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1. 4. SUPPLIER AUDITS

The production areas of all of the suppliers that operate under Yıldız

Holding are audited to provide data for both the supplier risk category and

performance criteria. Action is taken based on the results of this audit.Annual audit plan is prepared by the central quality supervisor incollaboration with the business unit quality supervisors and shared withpurchase.

a. Pre-requirement Audit

A pre-requirement audit is applied to candidate suppliers with whom thecompany has not cooperated before in order to carry out a supplierpre-assessment. This audit is carried out by Yıldız Holding authorities or

by contracted third party. Business unit quality supervisors give

information for the planning Pre-requirement Audit to the central quality

supervisor and ensure to be in the audit plan. The list of pre-requirementquestions that will be used for the audit is a shared list of questions

prepared for Yıldız Holding.

During this audits;

• Finish product specication of Supplier

o Process and nish product controls

o Analysis background and certicates

o Hold and release activities• Food safety standards and practices

• Organizations, trainings records etc. items are investigated

b. Regular Audits According to Risk Group

Yıldız Holding plans regular audits to the all suppliers to be ensure food

safety, product quality, risk management, brand reliability and rawmaterial/ packaging material.

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This list of questions is created based on different standards, legalrequirements and requests by Yıldız Holding.

Audit reports are sent to central quality responsible. If audits done bybusiness unit responsible report is sent with a signed summary page.

Summary includes; company name, product information, date of audit,audit result, name of alternative suppliers, specic explanations if

required. Audit plans are created as once a year for low and medium risk suppliersand twice a year for high-risk suppliers.

c. Assessment of Audit Results

The quality performance tracking of our suppliers as well as theassessment of audits performed in order to guarantee continuity andcontinuous improvement in quality standards must be carried out.

Audit reports will be forwarded to the Central Quality Supervisor within 48

hours. Central Quality Supervisor again within 48 hours send reports topurchasing supervisors in order to evaluate audit results and demandcorrective actions. For common suppliers, central purchasing is informed.

For a single busines unit supplier, business unit purchasing is informed.

Within 1 week, purchasing supervisors ask for action plan of suppliers.Supplier audit scores and actions are reported monthly to GlobalInnovation and Quality Group President by central quality supervisor.

Audit and audit summary report data is archived under the biz.ulker portalsystem by Central Quality Supervisor and according to this data approved,conditionally, rejection supplier lists are updated.

- If the supplier works only with one business unit, signed summaryaudit report is shared with central quality responsible by related

quality and purchasing responsible. In addition, central qualityresponsible write his/her notes on audit report and sign it.

- If the supplier works with more than one business units, summary

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Audit results should be evaluated with in principles below;

i. Pre-requirement audits

Pre-requirement auditing is performed to assess a producer considered to

hold candidate status, with success in this audit opening the door totaking the rst step in a commercial relationship and purchasing process.

The minimum score that must be obtained in order to be successful in theaudit has been set at 700 points.

• In the event that the supplier candidate receives under 700 points: the supplier candidate is considered not to have passed the audit. Since

the pre-requirement audit is a prerequisite for the supplier process, thesupplier process may not be started until the supplier receives asatisfactory score in this audit.

In this case, in order for the supplier approval process to continue, thedeciencies discovered by the audit must be resolved.

-->

Following the audit, the candidate supplier must prepare a correctiveactivity plan regarding the deciencies as soon as possible and to

share this plan with the business unit's purchasing-quality supervisorsas well as the central quality supervisors.

-->

Based on this plan, a mutual agreement will be reached with the

candidate supplier and the new auditing date is set.--> In the event that a successful result is attained in the follow-up audit,

approval is given to start the supply process.

• The supplier that receivesa result of over 700 points is consideredsuccessful in the audit and approval is given.

--> Auditing is held based on material risk group within 6 months forsuppliers that receive a score upper than 700 points.

-->

Until the risk group auditing is conducted, the supplier holdsconditional approval status.

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ii. Regular audits according to risk group

The audits in this category are performed by Yıldız Holding or contracted

third party, while the auditing report is published and distributed by theauditor within one week to the supplier company as well as the

purchasing and quality assurance departments.

The minimum score that must be received in order to be successful in theaudit has been set at 700 points and with the condition that no

unsatisfactory ndings be found.

• In the event that the supplier receives under 700 points: the supplier

is considered not to have passed the audit. If this audit was held for asupplier on the approved supplier list, the supplier takes on conditionalapproval status.

--> Following the publication of the audit report, the suppliers must

prepare a corrective action plan regarding the deciencies within one

week, and they must share this plan with business unit purchasing-quality

supervisors as well as central quality supervisors.

-->

Within 6 months of the communication of the action plan, the controlaudit will be held at a new mutually agreed-upon auditing date. If theresult of the test audit is under 700 points again, the supplier that holds

conditional approval status is taken out of the approved supplier list andmaterial purchasing is stopped. The supplier can only enter the approved

supplier list once it receives a satisfactory score from an audit, andmaterial purchasing can then begin.

• The supplier that receives as result of over 700 points is consideredsuccessful in the audit.

--> An auditing plan is created as once a year as low and medium risk

suppliers, twice a year for high risk supplier if a score is received of700-850 points, once in a 2 year as low and medium risk suppliers, once

a year for high risk if a score is received of 851-1000 points for high risk

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Case Study:

Supplier Selection and Supplier Approval Process

Collaboration of the R&D, purchasing and quality assurance teams is

critical for selecting the right supplier for a new material. Timely

intervention and feedback allow this process to run more smoothly. The

following case study describes the new supplier selection and approval

processes.

Every year, the R&D department devotes time to new product developmentefforts and to launching new products. At one of our plants, it was

determined that in addition to the raw materials already in use; milk

powder with enhanced caramel avor had to be used as well.

Consequently, the R&D supervisor sent an email to the purchasing

supervisor, detailing the specications of the milk powder and requesting

a face-to-face meeting.

Based on these specications, the purchasing supervisor identied two

producers and requested trial samples from both of them. After the

700 - 850

Low-risk supplier:

once in a year

Medium-risk supplier:

once in a year

High-risk supplier:

twice in a year

Yüksek Riskli : Yılda 2 Kez

Conditionally Approved

Control Audit

< 700

Remove fromthe approvedsupplier list

< 700 851 - 1000

Low-risk supplier:

once in a 2 year

Medium-risk supplier:

once in a 2 year

High-risk supplier:

once in a year

Table of Audit Frequencies:

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The R&D supervisor then handed the samples over to the quality

assurance supervisor in order to have the fatty milk powder analyzed in

the quality assurance lab in line with the specications. It was found that

the samples differed from the regular milk powder only due to their

caramel avor content. A trial production was initiated and a taste test

conducted only after receiving positive results from physical, chemical andmicrobiological tests.

As the analysis process run by the quality assurance team continued, the

purchasing supervisor obtained the documents on the caramelized milk

powder and production conditions from the two candidate suppliers

(product specications, legal permits, product analysis reports not older

than six months, ISO 9001 and/or ISO 22000 or FSSC 22000 and BRC orIFS or AIB audit report).

Both analyses on the candidate suppliers yielded positive results and both

supplied a complete set of documents. The quality assurance supervisor

shared the analyses results with the R&D supervisor and a decision was

made to try both milk powders.

The R&D supervisor lled out the product trial form, which contains

material amount will be used in the trial, trial products will be used as

rework, and trial material contains milk allergens as standard milk powder,

and had them signed by production and quality assurance teams.

Trials are performed through R&D procedures and internal and external

tests, which are thought to be necessary by R&D supervisor, arecompleted. For the sample products, necessary approvals taken as

mentioned in R&D procedures. Then the trials are continued with the

caramelized milk powder that is used in the approved products. R&D

supervisor wrote down the specications of the raw material, uploaded

them to the specications center, and then had them approved and

published.

The quality supervisor contacted both the purchasing supervisor and

central quality supervisor in order to perform a prerequisite audit of the

supplier

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The supplier received a passing score of 800 points on the prerequisite

audit, which was performed by the central quality supervisor, purchasing

supervisor, and business unit quality supervisor, and thus earned a

conditional approval status.

As a result in order to see the performance of the raw material in production, a purchase order has given at the amount of one week

production consume.

When the product arrived, it was again sampled and continued to undergo

the quality assurance procedure. First production has launched with the

caramelized milk powder that yielded positive analysis results. After the

rst production, no problems were detected and the product was approvedby both the R&D, production and quality assurance teams.

The next stage was to audit the supplier based on its risk group and move

it to the approved suppliers list. Since milk powder poses a high material

risk and the prerequisite audit result is 800 points, the supplier had to be

audited within six months based on its risk group. Accordingly, the date (in

two months) and supplier information were given to central quality supervisor to plan the audit by business unit purchasing supervisor and

quality supervisor.

The supplier received 750 points on the audit and this score made him an

approved supplier.

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1. 5. MATERIAL SUPPLY PROCESS

The raw material and packaging material supply process begins after thematerial and supplier are approved. The matters that suppliers must payparticular attention to during the acceptance of raw materials and

packaging materials at their points of production are the following: thatthe materials are produced with the desired features, that the appropriateshipment conditions are provided, and that the supplier procures theanalysis certicates that indicate the control results for each shipment

and each batch.

a. Raw Material and Packaging Material Specications

The creation, system recording, approval, publication and updates asnecessary of the specications for all of the raw materials and packaging

materials that will be used in Yıldız Holding's business units are carried

out based on the specication method.

There are criteria that include the features that every raw material andpackaging material must have, as well as specications that consist of

the approval (green) and rejection (red) limits of these criteria.

The conformity of the purchased materials to the specications, as well

as incoming control analyses and supplier analysis certicates, are

checked. External institution analyses are held for each material inspecied periods.

Materials that do not have a specication or that do not meet

specications may not be purchased.

i. Preparation, publishing and communication of specications to

suppliers

During the product development process, the R&D team prepares thematerial specications for new raw material and packaging materials at

Ofce of Specs (OoS). Once the specications are approved, they are

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The purchasing supervisors follow up on published specications and

communicate these specications that include the desired features to

their suppliers.

Similarly, any revision to existing specications is also prepared by the

R&D teams, later being published from the specications center andcommunicated to the pertinent departments via e-mail. In these cases,the responsibility for communicating the change to the suppliers andobtaining conrmation that this change can be applied rests with the

purchasing supervisors.

Ofce of Specs (OoS) system includes a specication format to be

communicated to the supplier. The purchasing authority communicates anew and/or revised specication to the supplier in this format via e-mail

or printout.

For each material, the purchasing supervisors are in charge of obtaining

approval of the specications from their supplier as well as the necessary

records.

ii. Approval of specications by suppliers

Purchasing supervisors share the new and/or revised specications with

all pertaining suppliers and receive specication conrmation from the

suppliers.

The specications may be conrmed by the supplier in the following ways:

• Keeping a copy of the related specication as signed by the supplier or • Keeping a conrmation received by e-mail

Meetings with the suppliers as well as R&D and/or quality departments

are held as necessary to communicate existing changes and their

reasons to suppliers.

b. Incoming Material Quality Control Process

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Every raw material and packaging material supplied must adhere to theconditions and limits set forth in the specications. Material conformity is

tested by the warehouse ofcial before emptying the vehicle and

afterwards by the quality team. The fundamental conformity controls aregiven below:

• Analysis certicates,

• Analyses held as part of the control plan or by outside laboratories,

• Vehicle and material visual tests held during delivery,

• Performance tests held prior to production as necessary

are the most basic among these conformity tests.

i. Quality plans, analysis certicates

Raw materials and packaging materials are tested according to thequality plans prepared by the quality assurance departments based onthe specications published by the specications center. Some of the

criteria in the quality plans can also be tracked using supplier analysiscerticates.

Purchasing supervisors must communicate to their suppliers the need for

the procured materials to be produced in accordance with specications

and the obligation that the necessary analyses be carried out accordingto the quality plans stated in the analysis certicates. This

communication must be sent together with the materials. Suppliers areresponsible for sending with each dispatch the analysis certicate that

contains the analysis results for the materials as well as the appropriateraw material specication asked of the supplier.

Our agricultural raw materials might vary by season due to their nature.Because these raw materials' quality will directly affect the quality of our

nal products and there might be situations in the production stage where

improvements cannot be made, audits and analyses are carried out on

location at points before they reach the plant. If a situation unsuited tothe specications or audit conditions is observed at this stage, the

supplier is informed and improvement is expected of the supplier as sooni

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ii. Transportation conditions

Suppliers are responsible for securing shipment conditions that t the

qualities and risks of the raw material. Suppliers must fulll the most

basic needs, such as the conformity of shipment vehicles, their

cleanliness, providing the required of vehicle temperature, and notcarrying different and unsuitable materials together.

Suppliers must prepare a vehicle conformity document for each dispatchto conrm the conformity of shipment conditions, and they must send this

document with each dispatch.

iii. Incoming material control assessment

The raw materials and packaging materials transported to Yıldız Holding

production departments are checked by warehouse supervisors duringdelivery and sent into the warehouse. Batches in which no problems are

observed in terms of vehicle conformity and in physical controls are takeninto the warehouse and entered into the system. When entering materials

into the system, the batch numbers created must not hinder access tothe supplier batch numbers. Our suppliers must be able to access theirown records with the batch numbers they create when sending theirmaterials and this batch tracking must be continued at plant admission.

Following the system entry, the quality team begins the sampling and

control process for the materials. Analyses are conducted based on

parameters set forth by the quality plans prepared according tospecications. The supplier analysis certicates are also checked at this

time. Following all of these controls, the results are compared to

specication limits, and if they are within the targeted green limits, they

are admitted, but if they are not, they are rejected and the return/disposal

process is started.

Each material has a different analysis and approval duration as set forthin the quality plans based on its own features and risk size. Materialstocks and order processes must be managed by planning and

i i i i i

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The purchasing department and quality assurance department mustidentify the raw materials and suppliers where the most non-conformanceoccurs, and together they must follow a separate process in order tomanage the stocks of these materials.

c. Non-conformities Related to Materials

i. Rejection Situation: communication with the supplier and

action tracking

The rejection of any material causes a signicant loss of both cost and

time for both the producing company and the supplier. For the producing

company, the rejection of incoming material leads to a disruption of theproduction plan, a halt of the line or delay in production, consumer dissat-isfaction and increase in costs; it is a situation that is never favorable.

Raw materials are rejected in the following situations of nonconformity:

• The nonconformity of conditions at the stage of receiving into

the warehouse, the inadequacy of shipment documents, notadhering to shipment temperatures, the lack of analysis certi

cates, etc., • The noncompliance of raw material features with the

specication based on incoming quality control tests,

• In the event that a problem is detected during production(performance issue, foreign material, detection of a material

that does not t the specication, etc.)

Whether the material procured from the supplier will be returned to thesupplier or disposed of, based on its properties, is claried at the

agreement stage at the beginning of the supply process (packagingmaterials with the Ülker logo are disposed of, materials that will spoilrapidly are disposed of, products without logos or that will not spoil are

returned, etc.).

In case of material rejected by quality department, purchasing

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If required, plant quality responsible and supplier quality responsible cancontact to each other about cause of rejection.

Supplier is responsible taking actions to prevent reoccurrence of sameproblem. Purchasing responsible requests information about actions. A

team consist of purchasing, quality, production and R&D members maywork together to x the problem. Supplier action plan is shared with

business units. If action plan not effective, new actions can be requestedfrom supplier.

In the same time quality supervisors give information to the purchasingsupervisors and related busines unit if nonconformity materials are

received from Intra-group suppliers. Both the quality supervisors shouldreconcile about Non-compliance issues.

Revisions must be made in the control plan regarding any materialrejected for any reason, with internal and external laboratory analysesheld to conrm that the problem is not repeated. The cost of precautions

taken in order to manage the risk must be covered by our supplier.

The solution process for the problem is tracked by the incoming qualitycontrol department. Whether the same supplier's pertinent material isimproved and corrected is tracked based on incoming control results, andthe information is given to the purchasing department.

Sending material in range determined on specication is responsibility of

supplier. Purchasing responsible executes tracking, communication ofadditional cost occurred due to inconvenient material.

ii. Presence of a problem during production stage related to

approved raw material: rejection, risk assessment,

communication with supplier, action tracking

In the event that problems occur in production with materials that aregiven receipt approval, the rst step taken is to discontinue use of the

material.

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If the same material has a different approved batch, production iscontinued with that batch. Afterward, risk assessment is performedbased on the problem with the material. Whether precautions that caneliminate the problem during use of the pertinent material in productioncan be taken or not is assessed with the quality, production and, if

necessary, R&D teams. The quality supervisors inform the purchasingdepartment of the problem experienced, and the communication of theissue to the material's supplier is ensured.

Actions are set in order for the problem to be resolved completely and forit not to be repeated on the supplier side. The incoming control andproduction departments track the conformity of the actions carried out

regarding the material, and they communicate this information to thepurchasing department.

iii. Receiving consumer complaints related to raw material and

packaging material, communication with supplier, action tracking

For consumer complaints determined to be based on raw material or

packaging materials, the material used in the pertaining product istracked to access the batch number and supplier company. Based on this

information, the quality assurance department prepares a record (CPA

Form, Supplier Warning Form, etc.) to be communicated to the supplier

that includes the related sample and information on the material (batchnumber, shipment date, amount, etc.) and transfers it to the purchasingdepartment. The purchasing department shares it with the suppliers and

requests action. The supplier examines the problem and writes down onthe pertaining form the reason for the problem as well as the precautionsthat will be taken in order for the problem to not recur, sending the formback within one week.

Related departments assesses whether the actions taken by the supplierregarding the problem are sufcient, and in situations where it is

necessary, the quality assurance department may request additionalactions.

i i

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The incoming quality and production teams track whether the problem isresolved in following batches of material procured, and they communicatethis information to the purchasing department.

iv. Communication

Those on the supplier side who are responsible for the warning forms(CPA Form, Supplier Warning Form, etc.), complaints, analysis certicates,

specications and all pertaining information are dened; the contact

information of this person is included in the supplier folder in order toaccess this person in situations where it is necessary. The purchasingdepartmant is responsible of collecting supplier informations in every

business units.

v. The effect of non-conformance on the performance of related

suppliers

The purchasing agreements must include information regarding hownon-conformities experienced with the material will be communicated to

the supplier. The supplier must know that its performance will be affectedby each material group that causes a decrease in quality, a rise in cost,and/or a stalling of production.

After the material non-conformities are communicated to the supplier andthe supplier takes the necessary precautions and actions, if it is detectedthat the related problem has still not been eliminated, the material is not

purchased until it is guaranteed that the problem is clearly resolved.

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1. 6. PERFORMANCE CRITERIA, CONTINUOUS

ASSESSMENT AND DEVELOPMENT

Our suppliers are our partners in improvement and progress. Tracking

supplier data and executing action plans will positively affect all qualityprocesses.

After our suppliers are approved, their performance is tracked throughoutthe year under two main headings: quality and purchasing criteria. Thequality criteria are determined by audit scores, the rejection/acceptance

ratio for raw materials and packaging materials, the time it takes to

resolve CPAs and the number of consumer complaints received involvingthe supplier. The purchasing criteria are determined by the purchasingsupervisors. Common performance criteria and assessments areexecuted for all Yıldız Holding suppliers, and they are reported on by


Supplier risk factors and performance results should be shared with other

departments in business unit by purchasing department. Purchasingdepartments in business units should request supplier action plan, actioncompletion, nding an alternative supplier if supplier is unique or has low

performance. If necessary alternative supplier development studiesshould be done.

a. Performance Criteria of Suppliers

i. Audit scores of suppliers

Suppliers are evaluated according to explanation in risk assessment(Section 3b). Audit plan is determined related to evaluation. Audit resultsare included to yearly performance indicators.

ii. Rejection / acceptance ratio of raw materials

The materials of suppliers are either accepted or rejected based on

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These results are recorded systematically or manually. These records aretreated as one of the parameters that affect supplier performancecriteria.

iii. Closing time of CPAs

Quality problems that stem from the supplier (during the incoming control,warehousing and production processes) are shared by quality assurancedepartment supervisors with the purchasing department in order to becommunicated to the suppliers. The time period between the purchasingdepartment supervisors communicating the pertaining problem to thesuppliers and the suppliers responding with effective action plans is

referred to in supplier performance criteria as the time it takes to resolveCPAs.

iv. Number of supplier-related consumer complaints

Supplier-related consumer complaints are shared by quality assurancedepartment supervisors with the purchasing department in order to be

communicated to the suppliers. The purchasing department shares thecomplaint records with the pertaining suppliers and requests their actionresponse. The number of supplier-related consumer complaints is a partof the supplier performance criteria.

v. Communication of performance results to suppliers

Performance evaluation report is prepared quarterly by purchasing,central quality and plant quality responsible together and resides inrelated le on biz.ulker portal. Results are shared with suppliers by


Suppliers whose performance scores are below the targeted goals areasked to generate an improvement plan and share it with purchasing

supervisors. Purchasing supervisors communicate the feedback inquestion to the central quality assurance supervisors. The suppliers areexpected to carry out the necessary improvements as set forth in theiri i i

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This condition is discussed with suppliers in the rst meeting. The

importance of the expectation that they dispatch high-quality material iscontinuous, and it is specically stressed that the same quality must be

maintained over time.

The scorecard-calculation method and goals that will form the basis ofassessment are prepared by the central quality assurance andpurchasing departments at the start of each year. They arecommunicated to pertaining Yıldız Holding supervisors and supplier

company supervisors.

b. Continuous Assessment and Development Process

Our suppliers receiving continuous feedback on their quality performancevia vehicles such as assessment and scorecards allows the necessaryimprovements to be made on time. This also contributes to thesustainability of raw material and material quality as well as avoids thedelay of commercial necessities that are important in terms ofpurchasing.

Supplier assessments are performed on existing suppliers in a way thatencompasses the quality and purchasing criteria required during theapproval stage of new candidate suppliers.

i. Non-conformance management

Material-sourced problems: The experience of material-sourced problemsat the production stage is communicated by the quality assurancedepartment to the related departments and purchasing supervisors. Atthe same time, whether there is problem-free material in stock is alsoassessed. In order not to experience stalls in material-sourcedproduction, purchasing supervisors communicate the issue tosupervisors at the supplier rm immediately. The supplier is expected to

provide support at this point in order to resolve the problem, and thesupplier is also expected to resolve the problem completely and takeaction to prevent the problem from reoccurring. The non-conformity is

MATERIAL SUPPLY

1 st SECTION



Rejected materials: Materials detected not to be in accordance withYıldız Holding requirements at the incoming control stage are rejected by

the incoming quality assurance authority/engineer/supervisor with the

approval of the quality assurance manager. When the rejection process isbeing carried out, a detailed explanation that includes material

information and the reason for rejection are communicated to thepurchasing authority in charge of procuring the material. The purchasingauthority communicates the nding to the supplier company. The supplier

performs the necessary inspections regarding the reason for rejectionand provides feedback regarding the source of the problem and itssolution in order to prevent the problem from repeating. Thenon-conformity is recorded, and it will affect the supplier's performance.

Return/disposal process: Materials that are rejected or approved andfound to be problematic during the production stage are either returned totheir supplier or disposed of based on their qualities. While packagingmaterials with the Ülker logo and raw materials that spoil rapidly aredisposed of in particular, other materials are returned. The procedurescarried out are recorded by the logistic and purchasing supervisors.

Failing the audit: Following the publication of the audit report, the

supplier prepares a corrective action plan regarding the deciencies

within one week and shares this plan with the business unitpurchasing-quality assurance and central quality supervisors. A mutualagreement is reached and a control audit is planned. The result of thecontrol audit is assessed by the quality assurance and purchasing

supervisors to determine the status of the supplier (See Section 1 Part4).

ii. Continuous improvement

Our suppliers are our business partners that play an important role in ourproduct quality. Therefore, for problems experienced with our materials,

collaborative projects are carried out with our suppliers to plan actionswhen necessary.

i i i i i i

MATERIAL SUPPLY

1 st SECTION R .

0 0 .

1 4



Purchasing and central quality assurance supervisors assess end-of-year

performance data to determine the supplier performance criteria for thenext year. The goals set at the beginning of each year are communicatedby our purchasing supervisors to our suppliers to give information on theassessment principles that will be implemented throughout the year.

A process that is open to continuous improvement is achieved byensuring that all of the communications made by Yıldız Holding

supervisors with suppliers are assessed by the suppliers and thatfeedback is provided.

Supplier feedback holds great importance and must be executed within 1

week at the latest via e-mail or by using the system. If necessary, theimplemented practices are inspected on-site by quality assurance andpurchasing supervisors.

iii. Strategic partnership

Our raw material and packaging material suppliers, who play an important

role in our product quality, are important business partners to us.Therefore, our suppliers adopting the Ülker quality standards will not onlybe conducive to achieving continuity, creating an atmosphere with thehighest level of collaboration and boosting collaboration; it will also allowfor our suppliers to improve themselves and achieve a competitiveadvantage in commerce.

The targeted quality and most efcient supply chain will only be achievedthrough long-term effort and the principle of strategic partnership. Withthe strategic partnership principle, both the supplier and the customerwill benet at the highest level, carrying out their activities based on the

win-win principle.

MATERIAL SUPPLY

1 st SECTION



1. 7. CONTRACT SUPPLIER PROCESS

Contract suppliers are suppliers who manufacture products that will laterbe packaged, on a direct or sub-contracted basis, and offered for sale byYıldız Holding. Contract production conditions must coincide with those

found at Yıldız Holding production plants. Contract suppliers areexpected to meet certain basic requirements grouped under the followingheadings:

• Specications and level of compliance with specications

• Food safety, measurement, and analysis systems

• Laboratory adequacy

• Employee competencies and organizational skills• Training

• Quality and management systems

• Technology and knowledge adequacy

Every plant is required to check the products it manufactures on acontractual basis. For products manufactured on a contractual basis,

controls will be carried out by plant supervisors or contracted thirdparties.

An Approved Contract Supplier List is to be released and kept up-to-date

by the quality assurance team at Yıldız Holding headquarters. The plant

quality assurance department must rst check whether the supplier is on

the Approved Contract Supplier List before beginning a supplier or product

development relationship.



QUALITYCAMPAIGNno debate - zero defect



RECEIVING AND

STORING

INCOMING RAWMATERIALS AND

PACKAGING

MATERIALS

2nd

SECTION



This section includes topics such as controls to be performed and points

to consider during the process following the supply of material by the

purchasing team in accordance with our specications, starting fromreceiving these materials in plant warehouses until delivering them for

production, as well as conditions for material analysis and storage. Super-visors of our material warehouses must act in coordination with the

quality department at this stage to ensure that only the appropriate mate-

rials are received into our warehouses. Therefore, initial vehicle controlsto be performed by warehouse supervisors when material shipment

vehicles arrive, physical controls of materials, sampling to be performedlater by the quality control team, and inspections in accordance withquality plans are all described in this section.

RECEIVING AND STORING

INCOMING RAW MATERIALSAND PACKAGING MATERIALS

2nd

SECTION



RECEIVING AND STORING INCOMING RAW

MATERIALS AND PACKAGING MATERIALS

2nd SECTION R .

0 0 . 1

4



2. 1. VEHICLE CONTROL

Shipment of raw materials and packaging materials under appropriate

quality conditions is vital to product quality. Adverse conditions as well ascontamination of raw materials lead to material decomposition, thus

rendering the material unusable. Contamination is also a threat to thewarehouse and other materials in the warehouse. If vehicle shipmentconditions aren't controlled before the materials are received, delayedproblem identication could pose a risk to production continuity. Rawmaterials and packaging materials required for production must undergo

controls related to vehicle and shipment conformity.

a. Physical Conformance of Vehicle

Before unloading raw materials/packaging material from a vehicle, thevehicle and materials will be physically checked. During this procedure,the following are established:

• Has the vehicle been covered/ is the vehicle coveredappropriately to protect the material?

• Does the vehicle contain any physical residual material from theprevious shipment?

• Is the vehicle unclean in any sense of the word? • Have the appropriate measures been taken to protect the material

from spoilage/deformation/contamination (establish whether the

vehicle has been covered and insulated sufciently)?

• Has the oor of the trailer been covered with protective nylon andif yes, is the protective nylon appropriate for this purpose? Is theprotective tarpaulin made of nylon? If not, a) have the materialsbeen properly insulated from the oor of the trailer? b) has thepackaging been penetrated (from the interior sides of the trailer)by any splinters/dirt?

• Is there any type of foul odor inside the trailer?

• If the materials have been palletized, have the pallets beencovered with stretch lm to prevent shifting and arranged in anorderly layout?



2nd SECTION



• If the materials have not been palletized (i.e. are in bulk form), havethe materials been properly insulated from the oor of the trailer?

• Have the materials arrived on plastic pallets? If the materials havearrived on wooden pallets, is there a cardboard separator thatseparates the rst line of materials from the pallet?

• Does the vehicle carry a single type of material? Has the vehiclebeen carrying foodstuffs, packaging materials or others side byside?

• Does the materials contain any pests, dirt, moths, etc.? • Has the exterior packaging been deformed in any way? Do they

have any tears or physical dirt? Is there moisture on the externalpackaging? Are they properly sealed?

• Have the materials been transported under appropriatetemperature control conditions?

If any leakage or roll-over is detected and there is a risk that would impact

the rest of the materials in the vehicle, the materials are not unloaded. If,on the other hand, only a few palettes are affected and other materialsare not at risk, the affected palettes are separated and the rest areunloaded. The leaking materials are either sent back with the samevehicle or moved to a separate one inside the warehouse. In such a case,a warehouse employee in charge communicates the issue to his

immediate superior, and the warehouse supervisor communicates theissue to the quality assurance department so that they can look into it.

If the materials are transported via a tanker truck and the truck goes

directly to the plant without stopping by the warehouse, plant instructionsmust be prepared that establish who performs the rst check and how.

Similarly, individuals who will receive the materials into the warehouse(warehouse supervisor, warehouse supervisor, etc.) must also haveinstructions and check lists on hand so that they know how to perform the

physical check. These instructions are to be prepared by QualityAssurance Manager. The rule of shelf life must be dened in theseinstructions as well as the above properties. For example, the shelf lifetime of the incoming raw material must not be passed over 25% of total

i i i i i i i



2nd SECTION R .

0 0 . 1

4



b. Control of Vehicle Conformance Documents

Supplier's (agricultural products may be excluded) vehicle qualityconformity certicate must accompany every shipment. The warehouseofce must also check the vehicle quality conformity certicate when

checking the vehicle and materials. The certicate must also at leastcontain information about the specications of materials, vehicle cleaninginformation and materials transported by the vehicle in the previous

shipment. If the materials are carried on a tanker trunk, the supplier isasked to provide information about the materials transported in the

previous shipment. If a different kind of material was carried in theprevious shipment, the supplier is also asked to present a tanker

cleanliness certicate. In addition, tanker seal information must beprovided with all shipments.

In all shipments, it is best practice that the vehicle conformity certicatesprovide information about the vehicle's state of cleanliness, its suitabilityto carry goods and materials, its temperature conditions, its sealinformation (if any is used), whether it has any food residue containing

allergens etc.

c. Transportation Temperature Control

Temperature records and temperatures at arrival of vehicles that

transport cold chain raw materials must be checked. Vehicle records arechecked to establish whether temperatures are within the required limits.

If any temperature outside the required limits is detected, the rawmaterials are not unloaded. It is also noted whether the in-vehicletemperature uctuations coincide with delivery times. Producttemperature is also measured in order to assess the impact of any

uctuation in temperature on the material. The two temperatures arecompared and nal assessment is made by the quality assurancedepartment. If the result of the assessment is negative, the raw material

is rejected and the return process is initiated. The batch that has beenentered into the system is rejected due to the fact that the supplier has

failed to meet the shipment standards.



2nd SECTION



If a vehicle does not have any temperature recording device on a board,the temperature of the material is checked upon arrival and the measured

limit is assessed against specication limits.

In each plant, arrangements must be made to communicate the

temperature limits of delivered materials to the warehouse personnelresponsible for controls. These arrangements are to be made by QualityAssurance Manager. Instructions that govern practices such as theupdating and communication of tables that include temperature limits,communication of specications, denition of temperature limits in theERP system, etc. must be prepared.

d. Control of Supplier Analysis Certicate

The supplier's materials analysis certicate must accompany everyshipment. Before any delivered shipment is taken into the warehouse, thewarehouse supervisor must check whether the material has an analysis

certicate and that the batch number printed on the material's exteriorpackaging is identical to the number shown on the analysis certicate.

Vehicles that do not have analysis certicates or materials, or those withbatch numbers that do not match are not unloaded. Following the makingof necessary arrangements and delivery of the relevant certicate to theplant, the vehicle is unloaded. If the supplier cannot present the relevantdocuments, the vehicle is returned. The analysis certicate must bechecked for the following information:

– Supplier information – Name or description of material

– Production date – Batch/serial/lot number

e. Product Control on Vehicle

In addition to checking the suitability of a vehicle that carries the rawmaterials or packaging material, controls or analysis may be required tobe performed on the vehicle to establish the quality of materials.



2nd SECTION R .

0 0 .

1 4



f. Unloading the Vehicle

If the above-mentioned requirements are met, then the materials can beunloaded into the warehouse. Materials must be stored in the warehouseas soon as possible in a manner specied by the specications.

Materials that undergo quality controls are stored in a place separatefrom other materials and measures are taken to prevent any mixing.

Materials that do not meet the specications must never be used sincethey will negatively impact product quality. Therefore, materials thatundergo quality controls and are not yet approved by the system must

never be used as incoming for production. Warehouse personnel are

responsible for monitoring any unapproved material and ensuring that itis not used in production.

g. Return of Non-Conforming Vehicle

Materials that have been delivered on a non-conforming vehicle underunsuitable shipment conditions, and that have non-conforming analyses

and non-conformity certicates or failing quality controls performed onvehicle are rejected and the vehicle is returned to the supplier. At thisstage, warehouse entry of the material is performed on the system andthe quality assurance supervisor enters the rejection information into the

system.



2nd SECTION



h. Receiving Conforming Materials into Warehouse

Raw materials/packaging materials of which the shipment conditions andpre-controls are found to be satisfactory can be unloaded into the

warehouse. At this stage, it is important to unload these materialswithout causing any damage.

The palettes to be taken into the warehouse must be clean and robust

and a separator must be used between the material and the palette.

Incoming

Material Control

on VehicleThe vehicle

doesn’t unload

material is rejected

The vehicle

unloads.

If

proper

If not

proper

VehicleControl

Transportation

Temprature

Control

Control of Vehicle

ConformanceDocuments

Control of Supplier

Analysis Certicate



2nd SECTION R .

0 0 . 1 4



Storage conditions suitable for every material are published in the

specications, and it must be ensured that warehouse personnel arealways kept up-to-date on these specications. In every plant, thisresponsibility must be dened in job descriptions or instructions.

Materials in packages that are harmed (burst, tear, spill, etc.) duringunloading; materials physically damaged (pallet tipping resulting in

materials being torn, etc.) or materials that have been exposed to asituation that puts them at risk (contamination caused by a person

walking over the package or a package that has hit the ground, etc.) arestored in a separate area set aside for damaged materials. Then, thequality assurance supervisor examines them and makes a nal decision(return, scrap, disposal) about the materials.

After the materials are received into the warehouse, they are entered intowarehouse inventory through the system (SAP, AS 400, form). Warehousepersonnel create a record for the material by comparing the information

on the dispatch note and analysis certicate with the amount, name ofproducer, and production/expiration date of the material. At this stage, itis very important that the expiration dates of the materials are enteredcorrectly into the system and that a batch number is created and

assigned to every material.

Those materials that have been entered into the system are then labeled

according to the instructions prepared for each material. In general, thelabel should include information such as name, short code, system code,amount, batch no assigned by the system, expiration date, etc.



2nd SECTION



2. 2. CONTROL OF RAW MATERIALS AND

PACKAGING MATERIALS

a. Quality Standards of Raw Materials and

Packaging Materials

i. Specications

Quality controls of raw materials and packaging materials are performedaccording to the specications, which are prepared and approved by theR&D department and then issued by the specications center. Materialsthat meet the limits set forth in the specications are accepted and usedin production. While green limits mean that the material is accepted, redlimits mean means that the material is rejected.

Some materials, particularly agricultural products, may be dened as"yellow" limits, second class or B quality in their specications. The

Parameters / Analysis / Frequencies

Internal and External Analysis Process

Verication Plans

Dening in the plans what to do

in non-conformance situations

Preparation, approval, brieng

SPECIFICATIONS

QUALITY PLANS

ANALYSIS AND

CONTROL PROCESS



2nd SECTION R .

0 0 .

1 4



When raw materials and packaging materials are subjected to visual andsensory controls set forth in the specications, witness samples are keptto be used as reference. For example, when packaging materials are to besubjected to color and visual controls, witness samples signed by a printspecialist are obtained and kept, prior to the arrival of packagingmaterials. In addition, the R&D team must hand over witness samples forraw materials such as spices, aromas, additives, etc. to incoming qualityassurance supervisor as well as provide employees who perform sensory

controls raw materials training.

ii. Quality plans

Quality plans must be prepared for every material to ensure that incomingmaterials, including raw materials and packaging materials, are checkedthoroughly. Quality plans also facilitate the implementation of control andanalysis methods by making them more accessible.

Quality plans must be prepared according to specications issued by theOfce of Specs (OoS). When specications are revised, the quality plansmust also be reviewed and revised as needed.

When quality plans are created, the criteria dened by the specications,critical properties, supplier and material risk levels and analysisqualications must be taken into account.

Preparation and revision of quality plans are in the responsibility of qualityassurance manager and in the quality assurance directors’ responsibility

of control and approval. Before publishing or revising the quality plans,R&D opinions must be taken and the quality plans are published after theapproval of quality assurance director.

ii1. Determination of parameters/analyses/frequencies

Quality plans are prepared separately for each material or by grouping

materials with identical properties. It is of critical importance thatproperties be checked and that the methods of these controls and

l b i d d h i f b l l d i d d



2nd SECTION



Materials must be checked for, above all, properties such as those criticalto material quality, food safety and those that pose a risk of transmissionto other materials. Analyses must be carried out by taking into accountthe risk level of suppliers and the impact of shipment conditions on

relevant properties. For example, analysis certicate information of a rawmaterial we obtain from a supplier with whom we have a strategic

partnership relationship and whose quality systems performance is high

can be considered satisfactory, and this status can be establishedthrough controls at certain intervals throughout the year. When a similarraw material is sourced from a supplier whose quality performance is low,a need may arise to perform analyses each time we source this raw

material.

If a non-standard value is measured as a result of an analysis, thefrequency of incoming raw material controls must be increased. Standardprocess is to be applied only after the approval of nonrecurrence of the

problem.

ii2. Internal and external analysis processes

Based on the capabilities of each business unit's laboratory, quality plansmust encompass internal analyses to be carried out in the laboratory and

external analyses to be carried by an external laboratory. Periods of theseanalyses must be dened clearly in the quality plans.

Plants may contact external laboratories directly or request theirsuppliers have the analyses carried out. The purchasing department isresponsible for sharing the information about the analyses with suppliers

and to ensure that the task is successfully completed.

ii3. Verication plans

Instead of carrying out a full analysis for incoming materials we source

from suppliers whom we have established as high performance as a

result of supplier performance assessments; materials or criteria therisks of which have been established to be low; materials or criteria the

i l f hi h i i l i f i f



2nd SECTION R .

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4



All critical properties identied for the material must be measured, andthe results must be recorded in the analysis certicate. Incomingmaterials must be checked based on values recorded on the certicates.

Verication analyses must be carried out also for the criteria required todene materials and that and legal requirements.

The goal must be to reduce the frequency of incoming material control

analyses by increasing the quality systems performance of suppliers and

to replace the incoming material analyses with verication programs.

Even when the relevant criterion has been dened as an incomingmaterial control condition during verication analyses, the entry processmust not be put on hold.

If a problem is detected concerning the materials during the vericationanalyses, both a full analysis must be carried out during the speciedperiod and a penalty must be imposed, in consultation with thepurchasing department and the material supplier.

ii4. Dening in the plans what to do in non-conformance situations

If a non-conformance situation arises concerning the materials monitored

under verication plans, the quality assurance department communicatesthe issue to the purchasing department supervisors, and the purchasingdepartment supervisors inform the supplier about the off-limit result,request the supplier to remove the non-conformance situation, and

impose a penalty. Afterwards, quality controls are carried out onconsecutive batches of the material to establish whether the

non-conformance situation has been removed or not. If measurements donot reveal any off-limit result, analyses of the relevant material are re-runbased on verication plans.

ii5. Preparation, approval, brieng, publishing and review

Following the issuing of the specications on raw materials and packagingi i i



2nd SECTION



Also, where necessary, the relevant quality assurance supervisor caninform, via e-mail or orally, the warehouse, production and planningdepartments about the analyses and their frequencies, properties to bechecked and analysis periods mentioned in the quality plans.

The quality plans must be reviewed at least once a year. The qualityassurance manager assesses the yearly acceptance and rejection rates;

material-related problems; supplier quality systems performance results;

new products; revisions of specications; infrastructure and resourceschanges, and the quality plans are changed accordingly.

b. Analysis and Control Processes

i. Sampling

Different plants use different raw materials and packaging materials.Therefore, sampling methods must be dened for raw materials andpackaging materials. Sampling size, which will be determined based onbatch size; blend sampling size if blending will be performed; samplingpoints (edges, middle etc. of a pallet) must be set forth in the samplinginstructions to be issued at the plants.

These instructions must include the following:

• Sampling methods based on the materials to be analyzed andanalysis methods to be used

• If a microbiology analysis is going to be performed, procedures to befollowed to avoid contamination during sampling

• If special situations exist for physical and chemical analyses (i.e. asample must not be taken from the bottom of a sack; a sample

must be taken from materials that have accumulated on top of the

delivery vehicle), the following methods should be used • Procedures to be followed in situations where a re-analysis is

required; sampling method to be used and sampling size

i1. Protection of raw materials and packaging materials



2nd SECTION R .

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4



When samples are not covered properly, the material becomes exposedto external factors, which poses a risk of contamination or exposure topests. In such a situation, we also put other materials stored in thewarehouse at risk.

i2. Identication

After samples are taken in an appropriate manner, an identifying labelmust be attached to the package of the sampled material and it must be

handed over to the laboratory. This label must bear information such asname of the sampled material (SAP or AS 400 code, if any), short code,batch number, amount, arrival date, production/expiration date of thematerial.

i3. Delivery of samples to laboratory under appropriate conditions

After samples are taken from vehicles or material warehouses, thesamples are handed over to the laboratory, which is also a criticalprocedure. Materials may need to be transported without breaking theircold chain; or they may be prone to crushing, breakage, etc. In such

situations, the sample is handed over to the laboratory under appropriateconditions.

ii. On-site controls

Some materials (agricultural products, imported materials, etc.) can bechecked on-site before they arrive in our warehouse. By this means, the

conditions under which the seasonal product is kept can be established,or an opinion can be formed whether to change the supplier. With this inmind, unsuitable materials can be rejected on-site without even arriving inour warehouses.

ii1. Import material control

Some imported materials can be checked on-site, or before they arecleared and legalized, on board or at a bonded warehouse, and a decision

i



2nd SECTION



Control methods that have been identied in consultation with the supplychain business unit to protect the interests of the company are

implemented. Although policies may vary by plant, the critical point is toprevent the use of off-spec materials.

ii2. Early controls performed on agronomic raw materials

Agricultural engineers and supervisors carry out various controls onagronomic raw materials. It is thus ensured that raw materials grow underappropriate conditions from seed to harvest. All controls on these rawmaterials include the following:

- Seed sowing program

- Supply of seeds based on the identied seed sowing program - Seed growth control

- Growth control

- Irrigation control

- Handing of fertilizer over to farmers and follow-up - Preparation of harvest program based on ripeness control

ii3. Control of products such as milk, vegetables, wheat

Vegetables: Analyses are performed in accordance with specicationsidentied for raw materials or nished products, and the produce isaccepted based on the results.

Milk: Concerning milk collected from farms to be delivered to milk

collection centers: before milk is purchased, drivers conduct antibioticand alcohol tests to establish the milk's quality. The milk that obtainssatisfactory results are loaded into tank trucks to be delivered to milk

collection centers. At this point, witness samples are taken from the milkthat provided satisfactory results and are handed over to a raw milk

incoming laboratory to be analyzed if necessary. When tanker trucksarrive at the milk collections centers, milk is transferred to cooling tanks

to be delivered to the plant. Samples are taken, based on instructions,from each compartment of the tanker trucks that arrive at the plant.B d h l f l d di li l h



2nd SECTION R .

0 0

. 1 4



Sampled milk with unsatisfactory results is identied through witnesssamples and the problem is recorded. Field supervisor for milk purchasesissue warnings to or impose penalties on the related milk collection

centers/farmers.

ii4. Taking precautions and early warnings

Vegetables: Fields on which raw materials that have been rejected weregrown cannot be used for further purchases, even if there is a contractsowing arrangement with the farmer. Non-conformities identied basedon the properties of the raw materials are assessed and a solution based

on a preventive approach before harvest is sought.

Milk: Field supervisor for milk purchases carry out monthly controls at allmilk collection centers and farms in regards to physical conditions and

policies. Suppliers that fail to meet the requirements are issued warningsand requested to take precautions.

ii5. Acceptance – rejection

Vegetables: Parties meeting the acceptance criteria are approvedaccording to the controls performed on incoming raw materials and

nished products. Parties that are below excellence criteria arepurchased discounted and noncompliant parties are rejected.

Milk: Milk that fullls the specications is accepted and milk that fails tomeet the acceptance criteria are rejected and returned. Suppliers of the

rejected milk are issued warnings or face penalties.

ii6. Supplier assessment and development

Vegetables: Raw materials are rated as accepted, discount purchase orrejected based on the results of the analyses conducted. This informationis recorded in the SAP system. The SAP system records the quality grade

of the vegetables, which is created automatically. The quality grade,region, supplier and yield data are referenced for the year-end

d l i d f h A i l l



2nd SECTION



Milk: Field supervisor for milk purchases carry out monthly controls at allmilk collection centers and farms in regards to physical conditions and

policies. Suppliers whose products do not comply with acceptance criteriaare issued warnings and penalties are imposed when necessary. All milksuppliers are audited once a year and reports are prepared.

iii. Analysis certicate control

When the materials arrive at the warehouse, the warehousesupervisor/quality supervisor controls if they have supplier analysis

certicates. Then, conformance of the parameters stated on thecerticate with the specications, whether the analysis results are withingreen limits as well as the following are controlled:

– Material name or a specic expression describing the material – Production date / Expiration date – Batch/serial/lot number

– Net weight

The incoming quality department starts the analysis process after

checking the above information. Depending on the performance of oursuppliers, when conformance of the supplied materials with the desiredspecications is continuous, the number of analyses performed in thelaboratory can be reduced and the values in the supplier analysis

certicate can be used for quality control. With this in mind, the adequacyand continuity of analysis certicates sent by suppliers are important.

iv. Analysis

Required analyses are commenced on the materials deemed acceptableaccording to the supplier analysis certicate control. Material is notapproved until the analysis results are completed and assessed

according to the quality plans dened for shipments during incomingmaterial controls.

iv1. Internal analysis



2nd SECTION R .

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Raw material and packaging material samples are taken and delivered tothe laboratory to start the analysis process. Materials aren't acceptedbefore the analysis results are obtained.

iv2. External analysis

Some parameter analyses cannot be performed in plant laboratories, yetquality plans require these analyses to be performed at speciedintervals. Therefore, an accredited external institution is assigned forsuch analyses:

- For these analyses, the factories may either take their own samplesand send them to the institution,

- include them in a group of analyses that may be performed by the

suppliers.- If they choose the latter, the plant can either send the samples onbehalf of the supplier or request that the supplier do so.

Controls within this scope must be dened in the quality plans.

iv3. Analysis methods

Internationally-accepted methods must be used in the analyses of raw

materials and packaging materials, as specied in the quality plans. Themethods used can be controlled mutually with the suppliers and

generalized to achieve harmony among analysis results.

iv4. Conrmation analysis

In the event a laboratory analysis obtains an unacceptable result, theanalysis can be repeated to conrm that the error(s) are not due toemployee or device error.

Additionally, for analyses performed using rapid methods, conrmation

analyses must be carried out via extended methods at specic intervals.

i i



2nd SECTION



Both the plant and an accredited external laboratory work on the samesamples for the specied analysis methods, and their results arecompared.

Incoming Control Process of Raw Material and Packaging Material:

Taking the

samples

according to

instructions

Covering the

material

properly

after taking

sample

Labelling

the sample

Delivering the

sample to the

laboratory in

proper conditions

Sampling

Control of

Supplier

Analysis

Certicate

Controlling

the supplier

Analysis

Certicate

Evaulating

the conformity

of certicate’s

parameters with

spesication’s limits

Analysis

Planning and

performing the internal

analyses in plant

laboratories

Planning and

performing the

external analyses

in contract

laboratories



2nd SECTION R .

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. 1 4



2. 3. APPROVAL OF RAW MATERIALS

AND PACKAGING MATERIALS

Materials are analyzed in the laboratory in line with the vehicleconformance and initial physical controls, supplier analysis certicate

controls and quality plans. Results of these analyses are assessed bycomparing them to the limits stated in the specications.

Evaulotion Data

The Incoming Materialsin Spesication Limits are

Proper. TheAcceptence Approval in done.

The reject is decided. Thematerial usage is permitted.

The rejected materials• Recording in system• The reject decision is declared to the related

departments

• The precaution is taken about the materials such as

•Labilling •Seperation •Rejection/Disposal

• Results of Analysis & Controls by Quality Assurance

• Supplier Analysis Certicate Results

• Controls during receiving materials

in the warehouse

• Unconformities during receiving materials

in the warehouse

• Supplier Analysis Certicate does not exits or unproper of supplier analysis certicate

• Unconformities in material’s parameters with

spesication’s limits

i i i



2nd SECTION



a. Final Approval to Receive Materials

The materials are deemed as conforming and ‘accepted’ when the results

of the following are within specication limits: controls performed whilereceiving the materials into the warehouse, controls of the supplier

analysis certicate, and analysis and controls performed by qualitydepartment.

i. Responsibilities

The incoming Quality Supervisor /laboratory assistant/ foremanconducts the process of assessing all control results related to materials,comparing them with the specication limits and providing the nalapproval for use; the Quality Assurance Manager holds the authority ofnal approval.

These responsibilities must be specied in the role descriptions as well.

ii. Identifying in the system

Following the acceptance decision for materials, control results areidentied in the system by the incoming material quality supervisor /laboratory assistant / foreman, and the material is dened as ‘approved’;following the approval process, the warehouse supervisor can see thisdecision on the system.

iii. Practices to be performed in warehouse

When the quality supervisor accepts and approves the materials, thewarehouse supervisor can see the approval in the system and separates

the relevant material as 'approved material' in the warehouse. For thispurpose, an ‘Accepted’ label can be attached to the material pallets, orthey may be physically separated. This is to ensure that materialsapproved for use are separated from those pending approval, and that thematerials aren't permitted to be delivered to production without approval.

A f ( hi t hi l hi l f



2nd SECTION R .

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- Any non-conformance (shipment vehicle, vehicle conformancedocument, non-conformance of batch number, loading of materialsin a non-conforming manner, etc.) during the process of receivingmaterials into the warehouse

- Absence or non-conformance (missing information ornon-conformance with the specications) of the supplier analysis

certicate- Material properties deemed unacceptable by the specications

i. Non-conformance with specications

Use of materials is prohibited if a parameter is found to benon-conforming based on the specications. Conformance with the

specications is the primary condition for all the supplied materials.

ii. Responsibilities

If a non-conforming situation is found during controls, the nal rejectiondecision is made by the Quality Assurance Manager. The İncoming QualitySupervisor/Engineer/Chief is responsible for notifying the relevant

persons when the materials are rejected. These responsibilities must bespecied in the role descriptions as well.

iii. Identifying in the system

Following the acceptance decision for materials, control results areidentied in the system by the incoming material quality supervisor /

laboratory assistant / foreman, and the material is dened as ‘approved’;following the approval process, the warehouse supervisor can see thisdecision on the system.

iv. Communication/notication

The incoming quality supervisor/ engineer / chief communicates the

rejection of material to the relevant purchasing supervisor so that thisinformation can be communicated to the supplier.

In order to maintain continuity of production an information e mail is sent



2nd SECTION



R . 0

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4

In order to maintain continuity of production, an information e-mail is sentto purchasing, logistics, planning and production departments about therejection of material.

v. Things to do in warehouse

The warehouse supervisor tracks the results related to the materials in

the system and starts the required processes on the rejected materials.

v1. Identication

In order to separate the rejected materials from approved or

approval-pending materials, the warehouse supervisor labels the

materials clearly.

v2. Separation

Following the labeling of rejected materials by the warehouse supervisor,the materials are taken to the quarantine area of the warehouse or

blocked off with red tape to separate them physically from conforming

materials.

v3. Rejection / disposal

Depending on the agreement with the supplier of the rejected materials(for example: packaging materials bearing the Ulker logo should bedisposed of, materials without a logo or with a long shelf life are

returned), they are either returned following notication of the supplier bythe purchasing supervisor or the disposal process is started by the

logistics team.

vi. Continuity of production

When any material is rejected, planning, production, purchasing, logistics,

quality and R&D teams meet and develop an action for the most probablesolution. At this stage, the supplier may also contribute to the solution, if

i

vi1 Production suspension in cases of material rejection



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vi1. Production suspension in cases of material rejection

The ultimate goal is to continue production. When a material is rejectedin cases of non-conforming raw material or packaging material; if the

suspension of production is discussed, possibilities are considered suchas material supply from an alternative supplier, change of production plan,

working with an alternative and approved material, etc.

vi2. Assessment of material risk

For the assessment of the rejected material to use to continueproduction, quality, production and R&D teams meet and make a riskassessment. They assess the effect of the non-conforming parameters

on product quality.

vi3. Handling during production

As a result of the risk assessment related to the rejected material, if it ispossible to eliminate the problem in the production stage, it is decidedhow and what kind of a solution can be applied according to the size of

the problem (Winnowing out, eliminating, handling the problem parts ofthe packaging material, adding an extra process to be applied to rawmaterial to eliminate the problem, etc. are all example solutions).

vi4. Conditional acceptance

In case obligatory use of the rejected material in production; R&D, quality

and production teams negotiate on the temporary use of the material,and a Concession Form is applied. Material is evaluated according to theNon-Conformance Management process. The form is submitted to theGeneral Manager, Vice President and Group President and GlobalInnovation and Quality Group President respectively, after root causeanalysis, risk assessment, measures/corrective actions and preventiveactions are determined for the use of the relevant material. Use of

nonstandard raw material and packaging material dened in the form ispossible after the completion and approval of the form(see Section 3,

Case Study:



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Case Study:

Control procedures for raw materials transported via tank truck as well

as for the truck itself

We recognize that the arrival of raw materials at our plants under

appropriate conditions and the purchasing of raw materials that fulll our

specications are both critical to the quality of our products. This section

focuses on controls to be performed on raw materials that arrive in tank

trucks and on the tank trucks themselves.

Glucose syrup, a raw material used at many of our plants, is transported by

tank truck. When a tank truck enters the plant, both the production

operator, who is responsible for unloading the truck, and the qualityassurance team perform control procedures. Therefore, an unloading

operation can be performed only after it is established that the raw

material meets the specications. Ahmet, a production operator, was

responsible for unloading the tank truck carrying glucose syrup that

entered the plant during the morning shift. When the truck docked at the

unloading station, Ahmet retrieved the list containing the physical controls

to be performed.

Based on this list, he ensured the exterior of the truck and the valves were

clean, and that the truck was sealed. After nding no problems, he asked

the driver to present the following information about the two-tank vehicle:

the loading plan, information about the previous shipment's load, seal

information, and the supplier analysis certicates for the glucose syrup.

Based on these documents, he established that the truck transported

glucose syrup during the previous shipments. The vehicle hygiene form

stated that the rst tank was used to transport invert sugar syrup in the

previous shipment; therefore, the vehicle had been cleaned. Since Ahmet

did not detect any problems with the vehicle, he moved on to the sampling

stage.

The analysis certicate stated that both of the truck's tanks were lled

f

Emine then checked the quality assurance plan, which was prepared



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Emine then checked the quality assurance plan, which was prepared

according to the raw materials specications, to identify the analysis

required for the glucose syrup and began to perform the related analyses.

After the analyses were completed, she compared the results with the raw

material specications and determined that the dextrose value was not

within the set range. In order to verify the results, Emine called Ahmet and

requested that he take another set of samples. She then repeated theanalysis on the new samples. The results were the same. Emine

immediately informed the incoming material quality assurance supervisor.

The quality assurance supervisor discussed the issue with his superior and

they decided to reject the raw material. Emine also informed the

warehouse supervisor and purchasing supervisor about the situation via

email. The glucose syrup was entered into the system. The raw materialthat failed the specication analyses was recorded as rejected in the

system.

Afterwards, the purchasing supervisor informed the supplier that his

product was rejected and requested that he submit his thoughts on the

cause of the problem. The supplier responded that the problem was

caused by an issue in his own processes and shared the measures he hadtaken to prevent a similar situation from occurring again.

As a result, the importance of initial controls on incoming vehicles and

quality control processes was re-emphasized, and product quality was

maintained through the identication of an inappropriate raw material.

2. 4. STORAGE



2nd SECTION



a. Quality and Food Safety Standards

Our raw material and packaging material warehouses must be designed

in accordance with quality and food safety standards, and must protect

our materials against any kind of outside contamination. Materials mustbe brought into the warehouse in an appropriate manner and transferred

to production without risking quality and food safety until they are used.

The storage conditions of raw materials and packaging materials must

conform with the standards stated in the specications for materials.Therefore, when a new material specication is published, if there is a

temperature and moisture value not present in the warehouse, materialsmust be purchased only after fullling these conditions.

The main quality and food safety standards that must be followed in

material warehouses:

Outside Area Conditions:

• Warehouse entrances must be designed to prevent the entry ofpests. Water accumulation must be prevented in areas of thebuilding that lead to the exterior. All the water/sewage drainson-site must have manhole covers. There must be adequatenumber of manholes at appropriate distances for sewer cleaning.

• Garbage must be kept outside the warehouses, and the materials

to be disposed must be removed from the warehouses. • No bird nests should be present under lean-to roofs and around

the building. • All plants in the garden and external area must be checked.

Uncontrolled weed or plant growth is prohibited in the 1 m spacearound the building.

• Food mustn't be stored in the external area. When food must be

held in an external area for a short period of time, pallets must becovered so as to prevent contamination, and required precautionsmust be taken

Inside Area Conditions:



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•Floors of the plant must be designed and maintained so as toprovide structural integrity, facilitate cleaning, prevent contaminationand eliminate the possibility of pest infestation.

•Doors must be isolated so as not to allow the entry of pests. Thereshould be no big holes/gaps/clearances of more than 0.5 cm in thewindows and walls.

•Walls, oors, ceilings and doors must be made of a material that iswaterproof, smooth, appropriate for cleaning and disinfection, is freeof cracks and impermeable to pests. Junction points and cornersmust be rounded/arched to facilitate cleaning.

• Precautions must be taken in all window areas to protect the glassfrom breaking or splitting.

•The lights must be covered with lids to prevent their shattering whenthe light are broken.

• Drains must be designed in a way to prevent pest entry andcontamination, facilitate cleaning and provide structural integrity.Maintenance must be periodically performed on these drains.

• Filters must be used in all fans and ventilators. • A y screen must be attached to the doors and windows that must

be kept open for ventilation purposes. • The size and isolation of the storage area must allow appropriate

temperatures throughout the year. • Thermometers and moisture meters must be present in the

warehouses, and information must be recorded constantly.• There must be separate areas allocated for damaged raw

materials and packaging materials.

• Paints and ammable solvents must be identied and kept in alocked closet.

• There must be generators in cold storage areas. • Raw materials and packaging materials must be stored at a

specic height on moisture-proof material that does not come intocontact with the oor.

• During storage, damage of packages and material labels must be

prevented. Stacking and piling must be performed according to thecharacteristics of raw materials and packaging materials.

• The warehouse layout must also conform to the principles of



2nd SECTION



allergen management. Allergens must be labeled, and thewarehouse layout must be such so that allergens are separated

from non-allergenic materials and each other.• The layout must prevent direct exposure of all foods to sunlight,

and the related practices must be performed.

• In order to observe pest activity inside the warehouse, palletsmust be stored at a minimum 30 cm and ideally 50 cm away fromthe walls so as to allow one person to pass through and perform

controls. • Pest control operations must periodically be performed and

recorded. • Pest activity control must be performed on pallets that are unused

for a long period of time. For this purpose, pallets must be movedto allow for controls between the materials, and all controls mustbe recorded.

b. Non-conformance Situations

When conforming storage conditions aren't provided in the materialwarehouses for any reason (technical faults, work performed outdoors,etc.), the warehouse supervisor must start the process of eliminating thenon-conformance.

i.Communication in case of non-conformance

Cases of non-conformance in the warehouse must be primarily reportedto the quality department rst. For assessment of non-conformance, therelated quality supervisor and other departments such as maintenance,purchasing, planning and production are notied, and actions are plannedrapidly to eliminate the non-conformance.

ii.Taking precautions

Required precautions must be taken rapidly in order to not risk the

iii. Improvement and correction of non-conformance



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Actions to be taken related to the non-conformance must be determinedas soon as possible, the duties must be distributed, and improvementsmust be made while following the schedule. Improvements shouldn'tcover a short-term and must be designed to prevent the recurrence of

problem. After elimination of the problem, materials must be controlledagain together with the quality supervisors, if required, and taken into theappropriate storage areas by the warehouse supervisors.

c. Shelf Life Tracking

i. Planning

The use of fresh materials in our products based on their expiration datesis critical to product quality. Strong materials in our warehouses for a longperiod of time isn't appropriate to either quality or storage area

management. Having too many materials in the warehouse leads to manynon-conformities, such as improper layout of materials, failure to practiceFEFO/FIFO, failure to perform regular pest control, and failure to separate

the quarantine areas. Therefore, material planning must be performed topermit consumption of fresh products.

ii. Product control

The shelf life of materials stocked in the warehouse are tracked and

checked at certain intervals (If the SAP system is used, when the

warehouse supervisor enters the expiration date at the material receivingstage, the materials with approaching expiration date ( ED ) are trackedautomatically in the system, and materials with expiration durationswithin a certain timeline are sent to the ED warehouse in the SAPsystem).

As a result of the shelf life tracking by the warehouse supervisors;

unused materials are reported along with their remaining shelf lives.These reports are distributed to the quality, R&D, purchasing and planning



The warehouse supervisor attaches the label with the new ED informationon the related material and tracks accordingly



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on the related material and tracks accordingly.

The warehouse supervisor mustn't allow the use of non-conforming

materials according to the review. Necessary practices are performed forthe disposal of materials kept in the quarantine area of the warehouse.

2. 5. CONTINUOUS IMPROVEMENT



2nd SECTION



Ensuring the quality and food safety standards of our raw materials and

packaging materials is achieved through performing regular audits on our

material warehouses, determining the aspects to be developed, andtaking time-sensitive precautions. Therefore, our warehouses must be

tracked constantly and be involved in the improvement process.

a. Audits (Internal and External Audits)

Raw material and packaging material warehouses are subject to foodsafety internal audits performed at our factories. Performed at a monthintervals, the audits determine whether the internal and external areas ofthe warehouses fulll the minimum pre-requirements. Action plans areprepared for the non-conformities detected during audits, anddeciencies are eliminated by the warehouse supervisors according tothe schedule.

Our material warehouses are also subject to the quality and food safety

audits performed by contracted third party. Non-conformities can also beeliminated as a result of these audits. Solutions are found to prevent therecurrence of non-conformities through action.

b. Corrective Actions

Corrective actions are a system conducted as part of our plants' quality

management systems and covers all processes (receiving raw materialsand packaging materials, production, shipment and the consumer). Thissystem also includes the authorizations and responsibilities required toperform the necessary actions for researching, analyzing and preventingthe recurrence of non-conformities.

Corrective actions are requested by auditors related to the

non-conformities found at our material warehouses. These activities arecompleted by assigned persons according to a specic schedule.Corrective actions are controlled on-site and completed if they are found

c. Scorecard



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Scores and non-conformities of our raw material and packaging material

warehouses as a result of internal and external audits performed atspecied intervals are tracked. A scorecard is created for each materialwarehouse and the progress of our warehouses are monitored on a

monthly basis.

d. Trainings

Warehouse personnel must receive training on quality and food safetyfrom the quality supervisors before starting to work. These trainingsshould include the following subjects: storage of materials in

conformance with the criteria stated in the specications of materials,signicance of storage temperature control, controls to be performedbefore receiving the materials into the warehouse, signicance of batchnumber and ED tracking, prevention of cross contamination in thematerials, and controlling storage pests.

Employee training must be designed and implemented according to role

descriptions. Training programs must be repeated at least once a yearand all trainings must be recorded.



QUALITY

CAMPAIGNno debate - zero defect



PRODUCTION

3rd

SECTION



In this section, the production process of products that have beendeveloped and made ready for sale is described under the following titles:Preparation Prior to Production, Food Safety Program, Controls During

Production, Non-conformance Management and ContinuousImprovement.

The production of products that are loved by our consumers andcontinuous improvement of their quality in line with the zero defect targetare possible when all teams fulll their roles and responsibilities throughparticipation and coordinated work.

3rd

SECTION

PRODUCTION



3. 1. PREPARATIONS PRIOR TO PRODUCTION

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a. Publishing of Specications

Once a product development project is approved and completed, thespecications dene the target product and material properties, and theproducts are prepared for production. Ensuring consumer satisfaction in

every package at all times is possible through accurate denitions.

Properties and their limits that are effective to consumer satisfaction aredened and guaranteed in the specications of nished products,processes, recipes, raw materials and packages.

b. Preparation of Quality Plans

In order to reach Ulker quality in every package, the requiredmeasurements and controls are dened via quality plans.

i. Preparation of quality plans according to specications:

determination of control parameters, their frequencies and whowill perform them

Quality plans, that has the control parameters according thespecications published by OoS, are formed and revised by quality

Publishing of Specications

Preparation of Quality Plans

Approval of Quality Plans

Amendment Management

Determinations of Control ParametersDetails (Frequency / Responsibilty)

Before publishing or revising the quality plans, the opinions must be takenfrom R&D and the quality plans are published after the approval of quality

3rd SECTION

PRODUCTION



assurance director.

These plans include information regarding which parameters should becontrolled and by whom, how and how often they should be controlled,

and where the control records should be kept.

Competencies, risks and opportunities are evaluated with the target ofperforming all controls required to achieve the desired quality duringpreparation of quality plans. Therefore, the questions given below areevaluated:

To what extent does the production line conform with the propertiesstated in the specications? Do deviations or oscillations occurfrequently? Are any special precautions or controls required to fulll therelated conditions? etc. The frequency of controls must be in proportionto the amount of risk involved in fullling the related condition.

The plant's workforce and technical capabilities also play a determiningrole in the frequency and method of controls. Therefore, the

determination of accurate priorities, the exchange of ideas with relevantdepartments and progressing by common agreement are all important. ‘Critical’ properties as identied by the specications are of top priorityfor product quality, and the focus must be on these areas whiledetermining the measurement frequency.

ii. Determination of how and where to record the controls

How and where to record all controls are specied in the quality plans.

Control records of raw materials and packaging materials, including theresults of analyses and reviews performed by incoming quality controlsupervisor, are recorded in the system (SAP, AS 400 or form).

Process and nal product control records, including the results of controlsperformed by both operators and the quality team, are also recorded in

For this purpose, quality plans are identied in the relevant systemsbefore the supply of raw materials and packaging materials, and before

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production commences.

iii. Approval and publishing of quality plans

Once the quality plans are prepared by the quality chief/engineer, they areapproved by the Quality Assurance Manager, published and implemented.An infrastructure must be created in order to publish quality plans for allrelevant persons and make them easily accessible.

iv. Amendment situation (when and how to amend, how to approveand publish)

In the event an amendment is made to the specications, competenciesor risk assessments, the quality plans must also be reviewed and therequired amendments must be made accordingly. The compliance ofparameters and their limit specications with the quality plans must beguaranteed at all times. For this purpose, individuals must be assignedwho are responsible for tracking amendments to specications and forapplying them to the plans; general review frequencies and methods must

be specied in accordance with the relevant plant instructions.

Revisions to be performed must be published along with their reasonsand then implemented.

c. Publishing of HACCP Plan

In order to reect product and process amendments to HACCP plans,published specications are tracked, HACCP plans are controlled and therequired amendments are made.

Necessary revisions to HACCP plans must be completed prior to therelevant production.

d. Management of Production Tests

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PRODUCTION



Briengs about product, raw material, package or process tests to beperformed in the plant must be communicated to quality, production andother relevant departments before they are performed.According to theinformation found on R&D Test Forms, risks are assessed in terms of

food safety, allergen management and product quality, and the necessaryprecautions are taken.

e. New Line - Equipment Start-Up Activities

When a new line or equipment will be put into use, the relevant parts arereviewed by the food safety team, led by the food safety supervisor, prior

to the commencement of production. Food safety risks of the new line orequipment are assessed. In particular, issues such as cleanliness of theline and required elimination of areas which may cause crosscontamination, if any, are reviewed. If there is no risk found in producingthe products, production is commenced with the approval of the foodsafety supervisor. If risky areas are discovered, these parts are quicklyimproved and production is allowed once the improvements arecontrolled. HACCP plans and the cleaning schedules of new lines andequipment must also be prepared at the installation stage.

New lines and equipment are reviewed in terms of food safety andapproved for production. During product tests, which are performed onthe approved new lines or equipment, assessments are also made on theadequacy of product quality. If an available product is to be produced ona new line or equipment, the product is compared to previously-produced

products and values specied in the nal product specications, and thenassessed by quality and R&D departments. Once conformance approvalis obtained from the quality chief and Quality Assurance Manager,production is commenced on the new line or equipment (during theapproval process, a form may be used to receive and le the signaturesof relevant persons). If a new product is to be produced, the R&D teamassesses the product as per the specications, obtains the required

approvals from relevant persons and approves the production.

All assessments must be performed for the quality of both available andnew products. Using the ‘defect’ denitions provided in the specications,each work department must establish methods particular to its products

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each work department must establish methods particular to its productsfor the tests of conformance to specications. Production is commenced following the nal approval of new line and

equipment (after the assessment of food safety and product quality) bythe Quality Assurance Manager.

f. Production Plan

During the planning of production, the plant's allergen matrix must betaken into account. The production plan must be created by considering

the allergen content of products and allergen cleanings to be performedduring product replacements. In this manner, a time schedule can beprepared that is appropriate for allergen cleaning, and our products areprotected from allergen contamination risk.

At the same time, the specic trainings received by operators must betaken into consideration when assigning operators to production linesaccording to production plan.

g. Reception and Preparation of Raw Materials andPackaging Materials

i. Receiving materials

Upon request of the production department, raw materials and packagingmaterials are prepared and delivered to the department by warehousesupervisors. So as to enable effective traceability on materials andprevent the loss of labels during production, labels are applied to palletsat a minimum of 2 locations. At this stage, the materials' labelinformation and lot numbers as well as the physical conditions of theirpackages are controlled, and the materials are received by the productionsupervisor.


The lot numbers of all materials used in production must be recorded In

3rd SECTION

PRODUCTION



The lot numbers of all materials used in production must be recorded. Inthis manner, the traceability information of product materials can betransferred up until the nal product, prior to production. If the records oflot numbers are kept on an ERP system, the consistency between

materials that are actually used and the materials currently in productioncan be compared. If the records are in paper format, all information thatallows access to retrospective traceability records (lot numbers,production/expiration date, arrival dates, etc.) must be written.

3. 2. PROVISION OF FOOD SAFETY DURINGPRODUCTION

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Food safety is the most signicant part of the value we attach to ourconsumers. Aimed at producing the most reliable and avorful products

to our consumers in every package and every bite, international systemsand controls are utilized; our results are tracked via internal and externalaudits, and continuous improvement activities are conducted.

a. Pre-Requisite Programs

It is essential to protect foods from for food safety to protect foods fromany kind of physical, chemical and / or biological contamination that mayrisk their reliability. In order to achieve this, the pre-requisite programsdetailed below are applied in all work departments within Yıldız Holding.

- Foreign material control program - Personnel hygiene - Cleaning program - Maintenance program aimed at qality and food safety

- Pest control program

i. Foreign material control program

Foreign materials may cause great harm and damage to the health of our

MetalControl

Glass/Rigid

PlasticControl

Foreign

MaterialHunt

Controls

Prior toProduction

TemporaryMaintenance

Each of the raw material, process, storage, distribution and marketstages carry various risks related to foreign material contamination.

3rd SECTION

PRODUCTION



The Plant management team provides guidance on the below topics andenables the implementation of foreign material control program bysupporting the HACCP team.

• Implementation of HACCP program and its requirements:• Fullling the “clean oor, clean line” target on-site at the plant;

performing regular foreign material controls on-site; recording thecontrols and taking precautions for eliminating sources of foreignmaterials.

• Reviewing consumer complaints as well as the adequacy of the

actions taken.• Completing corrective activities (actions) in due time followinginternal and external audits.

• Establishing and implementing a preventive maintenance programin which food safety risks for the plant and equipment are assessed.

• Providing food safety refresher trainings to all employees so as tostandardize good production practices on-site.

Metal Control

In order to prevent metal contamination, all products are controlled priorto packaging. This control is performed with lters in uid products, andwith magnets and metal detectors in granular products. After thecompletion of the waiting and transfer stages of metal detectors inrelevant product groups, the nal packaging stage begins.

All metal detectors, magnets and lters are shown in HACCP plans andmanaged in accordance with the principles specied in the plans.

Glass/Rigid Plastic Control

The use of glass is avoided on the production site as much as possible.Glass/rigid plastic that isn't recorded mustn't be brought into the

production site.

Glass/rigid plastic instructions to be followed in factories arecommunicated clearly to all employees. This communication may beperformed during annual food safety refresher trainings.

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PRODUCTION



p g y g

Records

Glass List: A detailed review is conducted in all areas so as to create alist of glass and rigid plastic found throughout the entire plant. Theglass/rigid plastic list must be up-to-date and controlled at least once amonth.

Incident Records: All glass and rigid plastic breaking incidents that occurin the plant are recorded. The contaminated products with glass/ rigid

plastics are destroyed and never evaluated as animal food.

Foreign Material Hunt

The foreign material Hunt is an audit performed by employees working onthe line so as to nd foreign materials in their area. The main aim of theprogram is to identify the sources of foreign materials and to take thenecessary precautions for the prevention of contamination.

This audit is performed on-site by those responsible for the department,and at least once a week in critical areas such as production andpackaging departments.

The foreign material hunt includes the following steps:

• Foreign materials found are collected in bags and delivered to thedepartment supervisor. • Records are kept (shift, area, person, foreign material denition,

date).• Corrective - preventive activities are performed so as not to allow

these materials in again.• Results of the foreign material hunt are reported and reviewed on a

monthly basis.

Controls Prior to Production

Prior to production, all areas through which products pass are controlled

3rd SECTION

PRODUCTION



by operators so as to assess the risk of foreign material contamination.If any contamination source is found, such as threadbare bands, oilleakages, contamination, loose screws or removed silicon, persons

responsible for production and maintenance must take the necessaryprecautions. If the problem cannot be solved prior to production, theseverity of the contaminated risk is assessed by Production and QualityAssurance Managers, the required precautions are taken and a decisionis made either to commence or suspend production.

Temporary maintenance

Temporary maintenance is the maintenance performed so as to nd ashort-term solution in order to continue production. Temporarymaintenance isn't performed in product areas with a direct contaminationrisk. If there is an obligatory practice to perform outside the product area,maintenance is recorded and the maintenance team is asked to come upwith a permanent solution as soon as possible. Temporary maintenancemust, under no circumstances, be performed with materials such as

wood, band or cardboard.

Case Study:

Breaking of glass material and actions and precautions againstcontamination of products

Although we have effective controls before production about precautionsfor foreign material contaminating the products, we occasionally detect

foreign materials during production. We mention an example about the

actions that should be taken against glass material contamination.

In coated products line a uorescent light lamp has been broken and the

parts of it fallen inside of the enrobing machine during production. The line

operator has seen the parts of uorescent lamps and uorescent

chemicals fallen into the chocolate and has just stopped the productionand put the products in quarantine. Quality foreman and Quality Chief have

The incident is the most urgent issue in the production, therefore the

production foreman, production chief, production manager, quality

foreman, quality chief and quality manager have a meeting in the incident

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PRODUCTION



area to determine the precautions.

The team has decided the actions after the risk analysis about foreign

material spreading into products. The chocolate has been taken out fromthe enrobing machine. All the glass parts collected from the chocolate

until they reached the weight of the uorescent lamp.

All the enrobing machine parts have been cleaned against the small parts

of glasses and chemical contamination. The contaminated chocolate has

been destroyed against the glass risk. The incident recorded (Broken

Glass-Hard Plastic Form) and non-conformity management form procedure

started. The incident evaluated and the root analysis of incident, risk

assessment and corrective actions determined by production,

maintenance and quality teams. All the uorescent lamps have been

exchanged with substantial led lamps in all chocolate enrobbers.

Actions and precautions against the foreign material (metal pieces) spreading into products

We will issue an incident about the importance of metal detector and the

benets of using the detectable materials (pencil) by metal detector in the

production.

A line operator has been unconsciously dropped his pencil, which can be

detected by metal detector, into nougat conticream bunker in the nougat

line of chocolate plant. He has not been noticed that incident. The dropped pencil was broken by the rotating knifes into many parts.

The broken pencil was not noticed until the products arrived the metal

detector of packaging step. Since the metal pieces are in many product,

metal detector gave alarm and rejects series of products. Line operator

realized the abnormal situation and stopped the line. However he could not

notice the real problem and started the line. After a while metal detector

again started to give alarm and reject series of products.

This time line operator stopped the line and informed the production

foreman about the problem. The incident is an urgent issue in the

production; therefore the production foreman and quality foreman have a

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meeting in the incident area to determine the precautions. After the

investigations they understood the metal material is a part of the pencil.

The production chief, production manager, quality chief and qualitymanager decided the actions to solve the problem. Products have been

gone through the metal detector until all the part of pencil is collected. The

products 10 min before and 30 min after the alarm are taken out and sold

as non-sanitary waste.

As seen in the case, metal detectable equipment and effectively running

Metal detectors are so important in order to prevent foreign material to

reach the consumers.

ii. Personnel hygiene

Employees who touch surfaces that come into contact with food, rawmaterials or products must act so as not to contaminate products, as is

also stated by law. ULKER has always adhered to its duty to raiseawareness among its employees regarding personnel hygiene. Allemployees in the plant are responsible for taking care of their personalhygiene.

Main Practices

Hair

• Except for ofces where production isn't performed, hair and earsmust be covered by a bonnet inside the plant, production andstorage areas.

• The plant instruction on personnel practices must be consideredfor beard and mustache. If beard and mustache are permittedaccording to plant instructions, beard/mustache bonnets must be

used for beards and mustaches.

• While using bonnets, the practice of ‘Wear Bonnet First’ must befollowed. The 'Wear Bonnet First' practice is the rule of putting onprotective clothes after the bonnet, and taking off the bonnet aftertaking off protecti e clothes This practice applies to all plant

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taking off protective clothes. This practice applies to all plantsites, including ofce environments. It is prohibited to wear anapron without a bonnet in the cafeteria and ofce areas.

Nails

Nails must be kept short and clean. Nail polish and articial nails are notallowed.

Washing Hands

Everybody, including employees and guests, must wash and disinfect theirhands at the hand-washing stations located at the entrances. Hot water,soap, a drying department and hand disinfectant must be present at eachwashing department. Documents describing correct hand-washingtechnique must be prominently displayed at these stations.

Cosmetics

Individuals working at the production site mustn't use strong fragrancessuch as perfumes or lotions; make-up also isn't allowed to prevent cross-contamination risk.

Protective Clothes

All employees, including managers, contractors and guests, must wearsuitable and clean protective clothing (apron, overalls, overshoes, sleevesand beard cover when required, etc.) before entering into the plant.Persons missing one or more of these items are not allowed into theproduction site.

Personal Belongings

Personal belongings (accessories, watch, etc.) mustn't be brought intoproduction and storage areas, and medicine must be kept in locked and

Smoking

Smoking is only allowed at areas specied by the plant.

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Eating-Drinking

Eating and drinking (including chewing gum) are only allowed in therefectory or identied areas. It is not allowed to eat and drink in the carsparked on the plant site. Hand cleaning is essential after eating anddrinking. Therefore, eating points must be close to hand washing anddisinfection areas.

It is not allowed to eat products at the line. Product tasting can beperformed only in identied areas. There must be signs at product tasting

points. After eating at product tasting points, hands must be disinfected.

Infectious Disease Control

Prior to employment, it must be made sure that candidates do not have anydisease that may risk products.

All cuts and wounds must be covered with watertight plasters which aresensitive to metal detectors.

Injuries on Body

In cases when bloody injuries and body uids are present,inrmary/workplace doctor is consulted and action is taken on the part ofthe body that contacts with products or doesn't contact but poses a risk. If

the amount of body uids can risk products, that employee must stopworking. In case of occupational accidents where body uids contaminatethe equipment, the equipment is cleaned and disinfected. Productscontaining risk are disposed.

iii. Cleaning program

All Ülker products are manufactured by ensuring sanitary conditions withinthe scope of the good manufacturing practices at our facilities.

Master cleaning plans must be established within the framework of thistraining program.

Cleaning programs shall include the below mentioned fundamental

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Cleaning programs shall include the below mentioned fundamentalpractices:

• Each employee is responsible for the order and cleanliness inhis/her own work area.

• Personnel who are responsible for the cleaning, inspecting thecleaning and approving the cleaning should be dened in thecleaning instructions and job descriptions.

• Detailed master cleaning plans and equipment-based detailedcleaning instructions must be available at each plant.

• Production department is responsible for including theproduction equipment to be cleaned in the plan and ensuringcleaning is performed according to the specied standards.

• Each cleaning activity must be logged; its effectiveness must beinspected and the inspections must be recorded.

Master Cleaning Plan

The master cleaning plan is prepared in accordance with the facility’scleaning program and compiled into a written plan with the purpose ofensuring the cleaning activities around and inside of plants areperformed regularly, timely and properly by respective responsiblepersons.

All apparatus affecting food products (facilities, ovens, lines, machines,

panels, ceilings, cable ducts, forklifts, pallet trucks and similarequipment), structures and areas must be addressed in the mastercleaning plan. It must be current, accurate and specially prepared for theregion (production, packaging, storage, etc.), the plant or the speciccleaning purpose.

A main cleaning plan shall contain the following fundamental headings;

• Cleaning type

• Cleaning frequency • Personnel responsible for cleaning • Which instructions will be carried out

• Personnel responsible for the cleaning approval

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Personnel responsible for the cleaning approval • Depending on the requirement, subsequent assessment methods

may include the following controls:

Visual Inspections: Visual control of whether there is residue fromprevious products or not.

Allergen Test: Using general or specic allergen kits, the production linemust be inspected for allergenic food residue. Each allergen must bechecked for after product pass.

Adenosine Triphosphate (ATP) Test: Subsequent to cleaning, it’seffectiveness is measured by checking for presence of food residue onthe production line.

pH or Alkali Measurement: The nal rinse water is examined for presenceof chemical residue.

Observing that the cleaning is done effectively and properly and ensuringthat there is no chemical residue from cleaning agents form the basis ofassessments following the cleaning.

Cleaning activities may be classied under four main headings in themaster cleaning plan:

1. Daily Cleanings2. Periodic Cleanings o Pre-Production and Product Changeover Cleanings o Periodic Maintenance Cleanings o Allergen Cleanings o Closed System Cleanings3. Line Suspension Cleanings o Long Term Suspensions

o Short Term Suspensions4. New Line – Equipment Cleaning

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Master Cleaning Plan



1. Daily Cleanings: Cleanings that are performed during the shifts toremove post-production materials such as product crumbs, spills and rawmaterial residues that contaminate the work environment and may causethe risks of microbial reproduction, attracting pests and contaminatingthe product if accumulated.

The daily cleaning frequency must be dened in a plan different from themaster cleaning plan.

Example: Whereas the cleaning frequency of the spills on the edge of theraw material discharge receptacle is determined by the amount of thespills, the cleaning frequency of the residue smeared on the edge ofdough or cream receptacle shall be determined according to the risk ofmicrobiological contamination.

Daily cleaning practices also bring about a safe work environment whilemaintaining general order and cleanliness of the work site.

2. Periodic (Regular) Cleanings: Cleanings that have identiedschedules in either the master cleaning plan or the plant cleaningprogram and have detailed how-to instructions.

Main cleaning plans shall be reviewed once in a year and must be

prepared by the mutual consent of the food safety supervisor and theassociated regional manager.

DailyCleaning

LineSuspensionCleanings

New Line/EquipmentCleaning

PeriodicCleaning

Time of cleaning of periodic cleanings, employee number, etc issuesmust be planned by maintenance, production and planning teams. Theplans must be followed in spite of maintenance plan or stopping line.

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Weekly pre-production cleanings and product changeover cleaningsshould be assessed as part of regular cleaning and the minimum

frequency for both shall be dened in the main cleaning plan.

Cleaning for perishable product groups (meat, milk, sh, etc.) must beperiodically planned in order not to risk food safety. For example,production line equipment used for milk pasteurization carries microbialrisk due to heat and requires frequent and regular cleaning. Therefore,such product-based risks must be taken into consideration when planningfor the production.

Periodic maintenance cleanings shall also be assessed as part ofregular cleaning and must be implemented as a part of a plan.The purpose of maintenance cleanings is to keep up with the sections ofthe plant that need maintenance and also to clean more thoroughly theblind spots that are normally inaccessible or sealed during regularcleanings. Maintenance cleaning plans are created for such cleaning of

the plant sections. The list of equipment to be cleaned and the cleaningfrequency are dened in these plans. Following maintenance cleaningsand prior to production, production line controls are performed bypersons, who are identied by their job descriptions or by cleaninginstructions, to ensure that there is no physical, chemical or biologicalcontamination risk (e.g. inspecting cleaning rags or for over-lubrication).

Allergen cleanings are performed during product changeovers to preventcross-contamination from an allergen-containing product to one that doescontain that allergen in its ingredients.The purpose here is to clean all sections including the blind spots of theplant and thereby preventing the possibility of contamination by residualallergens from the previous product. Performed cleanings are inspectedfor conformance. Should the cleaning be conforming, production maycommence; otherwise, the plant is cleaned until it is suitable for

production. Allergen cleaning requirements are described in “AllergenManagement” section (see section 3 part 2c)

Closed System Cleanings: Closed system ( ex. Closed pipe line, llingsystem, tanks ) cleanings must be done delicately using CIP methods.Since visual controls are infeasible in closed systems, the effectivenessof CIP methods are of great importance. To ensure CIP methods are

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working properly, the following parameters must be inspected andrecorded;

• Temperature • Chemical concentration • Flow rate • Procedure durations • Pressure • Chemical validation of rinse water

3. Line Suspension Cleanings

Cleanings that are done after the production lines are suspended eitherin a planned or an unplanned manner. The effectiveness of cleaning mustbe tested with regarding instructions.

Long Term Suspensions: Long term suspensions may be as either

planned or unplanned outages. All suspensions exceeding 8 hours areaccepted to be long term. Focusing on the food contact surfaces, all partsof the line shall be cleaned and left clean during the suspension.

In the aftermath of a long-term suspension, regardless of the reason, thequality assurance and production departments shall jointly decide uponthe conformance of food safety risks by evaluating the items remaining onthe production line. The packaging materials and products that are on theline shall be wrapped and kept safe until reworked or used again.

After a prolonged outage and prior to changing over to a new product, aproduct changeover cleaning shall be performed and subsequent controlsmust be carried out as planned.

Short Term Suspensions: All suspensions shorter than 8 hours are

regarded as short term. Since there is usually no food safety risk forcontinuing with the same product, production may continue without

However, it is a different and a risky situation for perishable products.Therefore, all products with the risk of spoilage must be completelycleared out of the production lines and required cleanings must be carriedoutFor example, exposed cream in the receptacle may spoil and

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contaminate the production line following the short-term suspension.Therefore, the production line must be thoroughly cleaned.

All cleanings are followed by appropriate controls and the productionstarts after the line release.

4. New Line – Equipment Cleanings

In the event of adding a new production line or a plant, all relatedequipment must be cleaned rst and then brought into the productionarea with the approval of the quality foreman/food safety responsible. The startup cleanings shall be done covering all parts of the equipmentincluding the inner parts. There must be a risk assessment to plan andexecute the cleanings and the regarding controls. The metal scraps;welding impurities and similar risks shall be taken into consideration andmanaged.

Before the production startup, a detailed control must be completedbefore releasing the line.

With this practice, the production area as well as our other plants andproducts will be protected from unknown contaminant sources potentiallyemanating from the new equipment.

Cleaning Instructions

Cleaning instructions, consisting of the details for cleanings to be done inaccordance with the master cleaning plans, must be created. addition tofundamental insights on cleaning, these instructions shall containinformation on general practices and inspection methods subsequent tocleaning activities.

The cleaning instructions must be clear and include the following

• Chemical concentrations • Tools / equipment to be used (color coding shall be observed) • Equipment/sites to be disassembled • Water temperatures

P d d ti

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• Procedure durations

Although cleanings may vary depending on the work order of eachbusiness unit, the fundamental requirements to produce safe productsmust be dened in the cleaning instructions. For example, therequirement for scheduling planned cleaning outages during production ofperishable product groups (such as meat or milk), and maximum runningtime (based on either product or production line) must be dened in thecleaning program.

Chemicals

• A current list of chemicals and Material Safety Data Sheets(MSDSs) for all used chemicals must be available in each plant.

• The list must also include all cleaning agents and maintenancechemicals used in the production machines.

• Certicates of conformity for food contact chemicals and CIP

chemicals in food industry must be obtained • No chemical materials shall be left unregulated in the

production area. Chemicals must be stored under lock and key in aseparate and dedicated location within the production area.

• Chemicals must be identied (labeled) at all times.

Cleaning Inspections and Records:

Cleanings performed in the plants are inspected by responsible personsdesignated during the production process. The inspections are performedusing ATP tests for product residues (especially at points where bareproduct comes into contact) and sometimes using allergen tests (viaallergen test kits) where necessary. Executed controls are processed andtracked via forms or the system.

CIP methods are used at business units predominantly operate withclosed systems.

Since visual controls are infeasible in CIP methods, the effectiveness ofsubsequent analytical residue inspections (ATP, allergen, pH andconductivity) are of great importance. Parameters such as ow rate,chemical concentration and cleaning duration must be monitored andrecorded via forms or in an electronic environment

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recorded via forms or in an electronic environment.

Product residue inspections are performed via ATP control kits; allergenresidue via specic allergen kits; chemical residue via pH measurement,or conductivity control, or either the method specied in the chemical’sPIS (Product Information Sheet) or as recommended by a chemicalcompany.

All the critical limits of these measurements must be dened in thecleaning instructions. If the control results are within dened limits,

cleaning permission is granted; otherwise, cleaning is repeated andproduction does not commence until the measured value is within theappropriate range. All the residual controls are recorded.

Information on General Practices:

• Cleaning tools should not have wooden handles; plastic and

aluminum tools must be preferred. They must also be hot waterresistant and comply with the plant color coding.• Gloves should not be made from reusable or fabric material.

Disposable gloves (single-use) are preferred. The color of glovesshould be easily recognizable during product ow. Latex glovesshould not be used inside the production area.

• Cleaning rags must be visually distinguished (different color) fromother rags used in the plant for other purposes (such as rags usedby maintenance department).

• Small apparatus, such as buckets, cups, and agitators, must beidentied with its intended use and usage area at the plant.

Employees who are responsible for cleaning activities must be initiallytrained on cleaning instructions prior to beginning work and shall retakethe refresher training annually.

Case Study:

Cleaning and control of allergens; control and monitoring of temporary

maintenance

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One of the subjects we take care in our all facilities is to prevent allergen

contamination. That is why, the allergen cleaning and the effectiveness ofthat cleaning has been so important during transition of different

production.

At one of our facilities, the production has been planned as plain product

would be manufactured afterwards product with hazelnut. The line operator

has closed the line and started to preparation for allergen cleaning after

product with hazelnut. Especially he has brought the allergen cleaning

equipment to the line and he delegated the cleaning activities to hiscolleagues at the same line. They all have started to clean. After allergen

cleaning completed, the line operator has called Quality Foreman to get line

cleaning approval in order to run production. Quality Foreman has checked

with his torch all points at rst. Then he has started to check the points to

be checked with specic allergen test kits which are described on

“production change control form”. He has seen positive result with test kit at

the inside of tank 1. Upon, the hazelnut allergen test results have been

positive at each time although cleaned many times again and again. While

research for root cause, it has been realized that temporary maintenance

has been applied by a teon tape in the tank. It has not been possible to see

during visual check. Quality Foreman has transferred the case to the

Maintenance Foreman and has provided permanent maintenance to be

made. Tank has been cleaned once again, checked with allergen test kits

and there has been no hazelnut allergen at that case. The line cleaning has

been approved by Quality Foreman and production has run for the plain product.

The importance of allergen control beside allergen cleaning and the

different problems caused by temporary maintenance unless changed to

permanent improvement have been understood.

iv.Maintenance program aimed at quality and food safety

Maintenance of equipment must be performed in an efcient and planned

Regular control and equipment cleaning is essential to minimize the longdowntime periods and extend the lifetime of equipment. An HACCP plan must have been made for each line before preparing themaintenance plan. Maintenance team and food safety directors manage

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maintenance plan. Maintenance team and food safety directors managethe maintenance program together and lead the HACCP team in this

respect.

Maintenance Procedures

• During production, it is not appropriate to perform welding in thearea of production. Welding types and grinding processes whichmay splatter on and risk the product aren't allowed. In obligatorycases, it must be ensured that complete isolation is provided and

odor is prevented by separating the welding area from other areas.Welding must be performed with approval and under supervision offood safety supervisor/quality assurance manager.

• So as to prevent welding contamination in the production areaeven when there is no production, required precautions must betaken and welding must be performed within the knowledge ofquality department.

• Rough and spot welding isn't allowed in product area.• Food safety risks must be assessed prior to each maintenance

operation to be performed during production.• Line must be physically isolated (screen, separator, etc.) from

other areas before the operation.• Risk assessment must be performed on the site by the line

supervisor and food safety supervisor. It must be ensured thatmaintenance operation doesn't risk the products produced onadjacent lines. If required, work might be suspended untilnecessary precautions are taken.

• In cases such as installation of a new line, line mustn't beoperated without obtaining the approval of the HACCP teamregarding the use of line.

• Controls must be performed to make sure that equipmentoperates accurately prior to start-up, especially after the

installation of equipment such as metal detector, pasteurizationand sterilization which are Critical Control Points Critical limits



Assessment, monitoring and management of pest activities are alsoensured for eliminating the pest population.

Plant management team is responsible for improvement of the pestcontrol conditions in the plant. All departments are liable to inform pest

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control company or food safety supervisor as soon as they notice pest

activity within their own area.

Pest control program must be preventive and established in a way toprevent pest access from outside.

For an efcient control, intervention must be enabled as soon as any pestis seen on the company site.

Main pest types to be controlled:

• Rodents and mice • Cockroaches

• Storage pests such as louse and moth • Rhubarbs

• Birds

• Animals which are able to enter the plant such as cats and dogs

Regular Pest Controls

Pest control audits are performed at regular intervals by a pest controlcompany employee who is an expert and holds an authorizationcerticate. Pest control companies which offer their service must beexperts in their eld. All activities and practices must be performed by

their trained and authorized personnel.

Detection and monitoring of pests must be performed as follows: feedingstations outdoors and live-capture monitors indoors for rodents,live-capture monitors for walking pests, y trap lightings for ying pests,observations and routine audits for birds, pheromone traps for storagepests, a suitable method in accordance with detected problem for other

pests. Method and frequency of this tracking are specied in theapproved contract and results are communicated to the authorized

These controls are performed at least once a week, and cover all areas ofthe plant. Regardless of routine or non-routine, all site controls must berecorded completely.

All practices in the plant must follow an order of importance; starting from

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high risk areas to low risk areas as specied by the risk assessments of

the company. Once every three months, a review is performed in the plantfor the control of pest activities and improvements made against pestactivities. Action plans are prepared for chronic problem sources.

Raw material warehouses are the risky and difcult areas in pest control.Therefore, employees in raw material warehouses, cleaning and relevantquality departments receive an extra training on storage pests.

b. HACCP Program

A food safety management system must be established in each entity aspart of the HACCP Program, and implemented by covering all rawmaterials, packaging materials, processes and products of the plant.

An HACCP plan must be present for all lines and product groups in all

plants. For this purpose, an HACCP team must be created under theleadership of food safety engineer / chief. Hazard analyses for every lineand product group must cover all physical, chemical and biologicalhazards. Critical control points (CCP) must be determined, brought undercontrol, and the fact that products are protected from these hazards mustbe demonstrated with evidence.

If there are wastes used as animal feed, risk assessments must alsoexist about their conformance for consumption by animals.

In each plant, following 12 main steps must be followed as part of theHACCP program:

1. Making an HACCP team: This team consists of employees fromvarious departments such as R&D, production, maintenance, quality,

logistics. Plant experience is signicant in person selected for theHACCP team

2. Product description: It is the document that is prepared by R&D teamprior to the rst production, and describes the product. It includesinformation such as content, allergen information, target consumers.

3. Description of the target consumers to whom product will be offered:

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R&D team must determine the target consumers of the product such

as children or adults.

4. Preparation of ow diagrams: It is the diagram that shows all processsteps from receiving raw materials to shipment.

5. Validation of ow diagrams on the site: Process ow diagrams createdby the HACCP team are nally validated at the line.

6. Listing of hazards and control precautions: Physical, chemical andmicrobiological risks must be determined at each process step andcontrol precautions must be taken.

7. Determination of critical control points: In order to eliminate orreduce food safety hazards to an acceptable level, control steps (CCP)mustbe determined.

8. Determination of critical limits: Limits for Critical Control Points aredetermined.In the determination of critical limits legal requirements,human health and scientic research are considered.

9. Monitoring of critical control points: In order to ensure operability ofthe precautions taken at Critical Control Points, control results aremonitored regularly. Results are reviewed in HACCP assessment

meetings and action is taken, if required.

10. Realizing of corrective activities: In case of non-conformance;action, action owner and action completion time are determined andtracked.

11. Preparation of validation list: The HACCP system is validated by the

HACCP team at least once a year. The path to follow duringvalidation must have been dened beforehand



Allergic reactions

The most commonly seen allergic reactions are given as follows. Theactual list is tracked via global and legal references such as Codex, EUregulations, which are updated via scientic researches.

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Coeliac disease: Coeliac disease is a hypersensitive reaction whichaffects small bowel; it causes inammation and deformation in bowel villiby which important elements are absorbed. Gluten protein found in barley,wheat, rye and oat are toxic for coeliac diseases.

Sulde hypersensitivity: Suldes can be transformed into sulfur dioxideunder suitable conditions. Reactions to suldes are characterized bysevere bronchospasm which emerges in a few minutes after consuming

the food including sulde.

Lactose intolerance: Lactose intolerance leads to a reduction in thelactose digestion capacity due to low lactase enzyme activity in smallintestine.

Egg allergy: Egg allergy is seen at a ratio of 1.6% in kids about 2.5 years

old; a reduction of 11-50% and 82% is observed at about 4-4.5 and 16years, respectively. Both the yolk or whites of eggs may create reaction. Fish Allergy: Many shes include ß- parvalbumin major allergen protein,such as Atlantic herring (Clupea Harengus), Pacic sardines (Sardinopssagax), Yellown tuna (Tuhunnus albacares), Swordsh (Xiphas gladius),Atlantic salmon (Salmo salar), Ocean sea bass (Sebastes marinus).Some people are allergic to all sh while some are allergic to only a few

types of sh.

Soy Allergy: Six different allergens are found in soy (Gly m1-Gly m6). Butsoybean oil and soy lecithin can be used by many people since they arebased on soybean oil fraction. Products labeled with additive vegetable oildo not contain soy protein.

Crustacean and mollusk allergy: Shrimps, crabs, craysh, lobsters andother crustaceans may lead to allergic and non-allergic reactions.

Found in Shrimps (Penaeus indicus) which are a kind of shellsh, thetropomyosin, a major muscle protein, may cause allergy. Since the mainallergen found in shellsh is also found in mollusk such as snail, calamariand mussel, cross contaminations among different species are common.Symptoms of food allergies are generally moderate such as oral allergysyndrome but severe symptoms such as anaphylactic shock (sudden

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syndrome, but severe symptoms such as anaphylactic shock (sudden

decrease of blood pressure, black out,shortness of breath, death, etc.)may also occur after consumption.

Plant management team is responsible for implementing the allergencontrol program.

Allergen management includes the following titles:

• Separation of allergen materials: Allergen materials must beseparated from each other and other materials during supply,handling, storage and production stages.

• Production plan strategies: During the production plan preparationstage, order must be arranged by risks. If possible, allergencontaining products and those that don't contain allergenshouldn't be produced on the same line. But if this is not

possible, following the production of allergen containing products,relevant cleaning procedures must be performed, and allergencontamination risk must be eliminated for the next product. Ifallergen contamination risk cannot be eliminated by cleaning,required warning must be given via the “trace amount”information.

• Cross contamination and cleaning: If a cleaning practiceeliminates or reduces allergen risk to an acceptable level, this

practice is a prevention method, and must be validated so as todemonstrate its efciency on the relevant allergen. Surfaces thatcontact with foods following this cleaning must be analyzedperiodically for validation.

• Re-work products control: It must be determined which productsmay include re-work products, and allergen tracking must beperformed.

• Labeling: Allergen materials are dened on packages.

Below-listed good manufacturing practices are followed to managecross contamination risk of allergens.

• Allergen product replacement cleaning: Validated cleaninginstructions are prepared and utilized.

• Visual and analytical control prior to rst production of the week: It

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Visual and analytical control prior to rst production of the week: It

is performed with torches by persons trained on allergens, andconrmed via analytical methods. • Product replacement controls: It is performed with torches

following the allergen cleaning. • In paddles, agitators, cups and sampling equipment, color coding

practice or a different identication is performed.• Areas where allergen addition takes place must be separated from

other areas (such as agitation room).

• If possible, lines are dedicated to a specic product group. • Use of barriers (such as screen or pan): They are used at points

with contamination risk between lines.• Air ow control: Direction, rate and distance of air ow to allergen

are kept under control.

Allergen Visual Controls

Visual controls are performed after allergen containing production, andefciency of cleaning is approved. Visual allergen controls must includethe following details:

• A control team is created which consists of employees, operatorsand foremen trained on allergens.

• Training includes theory and site controls.

• After cleaning, trained persons perform detailed product areacontrol with torches.

• All equipment containing allergens are controlled thoroughly.• Control results are recorded, the controller and shift

superintendent sign the form. • Production isn't commenced before the control result is “clear”. • If the control result is “contaminated”, the area is cleaned and

controlled again.• If the allergen visual control result is “clear” cleaning is controlled

d. Internal Audits

All areas within the plant are controlled via internal audits on a monthlybasis. Food safety audits are planned and conducted under theleadership of food safety director on a monthly basis. These audits coverproduction areas, external areas, raw material and packaging material

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production areas, external areas, raw material and packaging material

warehouses, and auxiliary plants. All teams performing internal auditsreport the audit ndings to food safety director. In the regular meetingsarranged with the participation of required departments, necessaryimprovement plans are prepared with reference to audit ndings. Theperson responsible for improvements provide feedback to food safetydirector on the improvements performed. Thus, all production areas,external areas and warehouses are audited monthly, non-conformities aredetected and required improvements are planned and performed.

e. Food Defense

Food Defense Program aims to dene and reduce the known risks thatmay be caused by people on the food products produced in the plant.Minimum requirements which must be fullled in each plant are asfollows;

• Setting up a risk assessment team and assigning a team leader • Establishment of a food defense program • Inspection of plants to determine their defenselessness level,

and performance of risk assessment by the team • Preparation and tracking of action plans for the determined risks • Refreshment of annual food safety trainings • Annual assessment of food safety program

3. 3. LABORATORY MANAGEMENT

With the aim of establishing common analysis methods and principles toensure the accuracy and consistency of laboratory analyses, a commonlaboratory method is applied at Yıldız Holding companies. Thanks to thismethod minimum operational and management standards are created

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method, minimum operational and management standards are created,

and the accuracy and reliability of the sensory, analytic, instrumental andmicrobiological analyses performed at the factories are ensured.

Such planned Laboratory Management is conducted by transferring toDenet End. Hiz. A.Ş, which is a special expert laboratory, for all businessunits and locations within Yıldız Holding.

Relating to Laboratory Management, way of doing business and mutualresponsibilities belong to; all business units within Yıldız Holding(Principal Employer), Denet End. Hiz. A. Ş. and Northstar InnovationDanışmanlık A. Ş.

Denet works with international and scientic methods and providesemployment accordingly. Also, it performs based on scientic andtechnological infrastructure according to quality plans which are

determined by Yıldız Holding and Global Quality Assurance.

The quality of services supplied by Denet to Principal Employer is auditedand observed by Quality Assurance. “Monthly Activity Report”, whichdesigned by Quality Assurance, is prepared at each month by Denet forprevious month and it is forwarded to Quality Assurance and PrincipalEmployer.

“Monthly Activity Report” includes follows;

• Prociency Test Results (For Chemical and Microbiological Analysis) • Comparative Test Results • Laboratory Audit Score • Completion of Analysis on Time • Training

• Other Issues



• Laboratory Organization and Management

o There should be sufcient, experienced and knowledgeablemanagerial and technical staff for the volume of work to performgood laboratory practices.

o There should be laboratory training program for each laboratorystaff and each staff should start doing analysis after sufcient

3rd SECTION

PRODUCTION



staff and each staff should start doing analysis after sufcient

qualications. o There should be a clearly dened organization and reporting

structures within the laboratory to ensure the effective operationand impartiality of the laboratory and its staff.

o Deputies should be nominated for all key positions and functions.o Laboratory management should review procedures and operation

of the laboratory for continued effectiveness and to introduce

necessary changes or improvements, at least annually.

The review should cover;

√ The suitability of procedures and instructions √ Results of internal audits and assessments and effectiveness

of corrective actions √ Where relevant, results of QC data is compared, particularly

external prociency testing schemes √ Changes in volume or nature of the work and suitability of

available resources √ Any actions to be taken after internal and external audits

• Laboratory Quality Management

o Laboratory management is made common by principles andprocedures to be applied. The requirements for laboratory area,personnel practices and analysis are written and applied.

o The systems documents should be communicated, available,understood and implemented by the appropriate personnel.

o Legal requirements should be followed up relating to analysis andmethods.

o The analysis records should be sufcient and adequate to allowsources of error and corrective actions taken to be identied.

o All records should be kept condential and disposed of securely. o The system of record keeping must permit traceability of work

throughout the laboratory’s operations. o If data is stored in electronic format, the laboratory should have

procedure to ensure: access to data and records is controlled andrestricted to relevant personnel; loss of data through systemfailure is minimized and changes could be veried and traced

3rd SECTION R . 0

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failure is minimized and changes could be veried and traced.

o If analysis results is reported, the following information should becovered; sample identity and code, test parameters, nal resultsincluding units of measurement.

o All aspects of the laboratory’s operations and activities should beaudited to ensure that the requirements are met on a continualbasis.

o The audit program should be prepared and operated in accordance

with a dened procedure and pre-determined audit schedule.Capable personnel trained/qualied should be used to carry outaudits.

o The laboratory should have procedure to be identied andimplemented for investigation and taking necessary actions whenany non-conformity is determined at laboratory operations.

• Supply of Consumable Items and Services

o There should be a procedure which covers demand, proposals andcontractors as well as consistency and continuity. That procedureshould include;

√ Selecting and purchasing of laboratory materials, items and

services which effect analysis quality

√ Purchasing, acceptance and storing of reagents for analysisand laboratory consumable items

√ The conditions of subcontracted laboratories for analysisand/or calibration which demonstrate their capability, creatingrecords of subcontractors and keeping them update

√ Evaluation of suppliers for materials, items and serviceswhich effect analysis quality.

• Personnel

o All laboratory staff should have the necessary education, training,knowledge and experience to full their assigned work, whichshould be maintained and updated once a year.

o All laboratory staff should be supervised until shown to be capableregarding the work to be undertaken With periodic assessment

3rd SECTION

PRODUCTION



regarding the work to be undertaken. With periodic assessmentprocess, which analyzes, analysis time, number of analysis and asa result of validation analysis.

o The laboratory should implement and enforce recognizedpersonnel hygiene and protective clothing policies.

o Except for formal sensory appraisals, eating, drinking and smokingshould be prohibited in laboratory areas. Food and drink for humanconsumption should not be stored in laboratory areas.

o Appropriate facilities for storage of personal belongings should beprovided dened laboratory areas.

o Laboratory coats must be worn at all times when in laboratoryareas. Spare coats should be available for visitors.

• Laboratory Facilities

o Laboratory areas should be clean and tidy and convenient tolaboratory standards. o Access to the laboratory areas and use of those areas should be

controlled and restricted to the authorized personnel. Wherepossible, ofce type accommodation should be provided separateto the general work bench activity.

o Where feasible, high risk laboratories/pathogen laboratoriesshould be physically in a separate building or separate laboratory

handling regular non high risk testing. If it is not possible, it shouldhave its own separate cleaning program and should be cleanedwith alcohol.

o Ventilation and drainage systems should ensure products inmanufacturing, packaging or product storage areas are protectedfrom sources of contamination in the laboratory air and watersystems.

o Depending on risk identication and risk assessment, environmentcheck program should be applied for microbiological laboratory

• Sample Preparation Management

o Documented procedures for the collection of samples mustinclude:

√ The method of sampling, the equipment and container to beused and any special requirements e.g. aseptic sampling

√ Have regard to the homogeneity or representativeness of the

3rd SECTION R . 0 0

. 1 4

PRODUCTION



√ Have regard to the homogeneity or representativeness of thesample taken

√ State the requirement for transportation to the laboratory e.g.time/temperature constraints

o Samples must be labelled and maintained in an appropriatecondition, at least until the results of analysis have been reportedand accepted.

o An effective system should be in use for uniquely identifying and

tracking without confusion samples through to the results andreports.

o All necessary precautions must be taken to prevent thedeterioration and contamination of samples during storage,handling, preparation, analysis, during sample collection andtransportation.

• Equipment Management

o Written instruction on the use and operation of all major items ofequipment must be readily available to staff.

o Evidence must be provided that equipment meets speciedaccuracy / capacity / sensitivity etc.

o Only trained staff must operate equipment.o All measuring and testing equipment that may signicantly affect

the validity of the data must be checked and/or calibrated beforebeing put into service, labelled with its calibration status andmaintained in calibration according to a schedule afterwards.

o The calibration program should ensure that for all measurementsmade, measuring and testing equipment and reference materialshelds should be traceable to national and internationalmeasurement standards.

o The laboratory must hold appropriate calibration standards andreference materials for measurement accuracy monitoring in

o Any equipment found to be defective should not be used andlabelled accordingly. Equipment should not be used until it hasbeen adequately repaired and recalibrated.

o Where for whatever reason equipment is moved from its usuallocation, its performance should be shown to be satisfactory priorto it being used.

3rd SECTION

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• Materials, Reagents and Reference Materials Management

o Procedures must exist for the receipt, storage handling anddisposal of reagents, chemicals, media, reference cultures andother laboratory consumables required for the test.

o Suitable stock control procedures must be operated, including thedisposal of materials, reagents and reference materials that have

exceeded their expiration date. o Documented instructions should be in place to ensure the correct

and consistent preparation of reagents and for the handling,storage and use of reagents to prevent deterioration.

o All reagents and materials must be clearly and securely labelled. o The laboratory should obtain and understand the safety and

hazard information of materials they use.

• Analysis Methods

o All methods in use must be prepared and approved according tointernational standard analysis. If commercial methods developedin house and/or modied versions of standard/industryrecognition methods are used they should be validated in housebefore use.

o Sufcient validation data should be available in order todemonstrate that the performance characteristics of methodsused are capable of achieving the range and accuracy as requiredby the intended use of the test results.

o Methods must be documented that ensures correct testprocedures are consistently followed at all times.

• Assuring the Reliability of Test Results

o The laboratory must implement suitable quality control proceduresand procieny appraisal to monitor and verify the correctperformance of methods and staff capability on a continuing basisand provide condence on the result reported.

o It should be provided that the testing organized by a procient

3rd SECTION R . 0 0

. 1 4

PRODUCTION



o It should be provided that the testing organized by a procientnationally recognized organization and successful core should beachieved.

o Where no appropriate prociency testing scheme is available, thelaboratory should ensure that adequate internal quality controltesting is performed.

o Prociency testing and comparative testing with an externallaboratory could be used.

• Laboratory Safety

o Risk evaluation should be performed for laboratory safety; duringrisk evaluation safe design, work practices and handlingprocedures to minimize the potential for employee exposure tochemicals should be taken into consideration. Relevant instructionshould be prepared and all staff should be trained as necessary.

o Appropriate personal protection should be provided to laboratorystaff and the use of them must be guaranteed.

• Optimization of Analysis Time for Production Continuity

o The analysis time of laboratory analysis should be optimizedaccording to international standard methods by taking into

consideration of production continuity. o Work on rapid analysis techniques and validation should be should

be planned.

3. 4. PROCESS QUALITY CONTROL

a. Importance of Process Control to Product Quality

In order to deliver our products to consumers within the target quality, itis signicant to perform required controls in all stages of production. The

3rd SECTION

PRODUCTION



earlier a negative situation in production is detected, the less the defectand waste ratio will be, and the more the cost losses will decrease.Regular process quality controls are performed by production and qualityteams during production.

b. Access to Quality Plans, Completion of Controls

In quality plans prepared in accordance with product specications;parameters to be controlled, control limits, control frequencies andpersons to perform control will be determined. Operators who areresponsible for each line assess the control results against the controllimits and enable continuity of product quality.

Process and nal product quality plans must be accessible from controlpoints at production line. If the ERP system is used, quality plans are

entered in the system by quality team on a product and line basis.Therefore, relevant line operators are able to access quality controlparameters and limits. Control results are entered as per the control lotnumber of current production available on computer screens. If the ERPsystem isn't used, controls are entered in the dedicated process controlforms.

c. Controls on the Line

Parameters which may affect the quality of our products directly orindirectly have been dened via quality plans. Accordingly, followingcontrols are performed:

• Process Controlso Controls of signicant work parameters in plantso Intermediate product controls

• Food safety controls o Any kind of contaminant controls, which may pose a risk for

consumers, performed prior to and during production

d. Traceability Records

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. 1 4

PRODUCTION



Traceability in production is the major stage of process quality control. Inorder to manage our risks in the most accurate way, products must betracked from raw material to consumer accurately.

Lot numbers of raw materials to be used in product preparation stage arerecorded in the traceability record system (ERP system, Barcode ScannerSystems, Forms, etc.). Operator must visually check if traceabilityinformation on the material matches with information on the system.

Then, production order and control lot are created for the relevant lineprior to commencement of production. By this way, traceability iscontinued and controls are recorded. Process controls performed duringproduction stage are recorded until the end of production so that this lotnumber isn't lost.

Traceability records are kept also in packaging stage of products. A

nished product lot number is generated to enable easy access torecords kept during process stage. Production/expiration date,production time, machine/error number are also found on packages. If there are no successive productions during process stage, traceabilitydenitions (product description, code, production/expiration date, plantname, amount and lot no) are also made in semi-nished products. Theseinformation are then transferred to the nal product.

e. Controls in Laboratory

During production, there are parameters which are deemed as necessaryto be tracked analytically in semi-nished products or products. Theseparameters are tracked via analyses in department laboratories withinproduction, measurement devices found at the lines or central laboratory.

Program related to analyses is dened in quality plans of the plant.

For analyses to be performed in laboratory, the amount (one batch, onestock tank, one shift production, one lot production, etc.) represented bythe product to be controlled is determined primarily. Sampling is madeaccording to that amount. Controls are conducted by production, qualityand laboratory teams.

Results of analyses performed in laboratory are compared to limits

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specied in the specications, and transferred to production departmentin the fastest way. If a non-standard result is present, it must bedemonstrated through analyses that required actions are taken andcontinuity of production is ensured following the correction of problem.

f. Provision of Process Quality

Achieving our target quality with the best costs is possible throughperforming accurate controls and taking the required precautions in eachstep throughout the production.

The earlier a problem is noticed, the more possible it is to solve theproblem with little damage. Therefore, both the line and equipmentcontrols and intermediate product controls are of great importance.

Every employee who works in production department must control theresult of the work he/she performs. Operators at oven are responsible forthe incoming and output products at oven whereas operators at thepackaging department are responsible for packed and unpacked productsand conformance of packaging quality.

For an efcient and rapid process quality control, it is aimed to perform all

possible controls at the lines and to benet from laboratory capabilities,when required, in accordance with the technical requirements.Regardless of the location of analyses, they must be concluded as soonas possible, the results must be assessed in accordance with thespecications and necessary actions must be taken rapidly

i. Measurement, analysis

Process quality controls at the production stage are performed by

Sampling stage is critical for the reliability of analysis. The quality plansmust dene who will perform sampling and from which points thesampling should be made.

In case the analyses are performed in laboratory, samples are taken bythe employees assigned from production or quality department andtransferred to laboratory as soon as possible. Another important issue atthi t i d i th t bilit i f ti b t l

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1 4

PRODUCTION



this stage is dening the traceability information about samplesaccurately. Samples must be transferred to the laboratory with thefollowing information on:

(information required for clear description of the product represented bythe sample)

For the continuity of production, analyses performed for process qualitycontrol must be involved in the plan as a priority, and results must becommunicated via the specied way as soon as they are received. Theoperator who works at sampling point is responsible for following theresults of related analysis. Coordination and cooperation among departments are very important forthe efciency of process quality control.


Operators and process quality teams enter the results of controls theyperform in the control system (ERP, control form, etc.) by using their ownuser names. Records include the time and results of the control andanalysis so that batch traceability isn't lost. In the accurate records keptduring process and product controls, green, yellow and red limits are alsotracked, and improvements and practices performed are written.

Date: Time:

Sample Name:

Batch no / time / line / machine:

iii .Assessment: Green/Yellow/Red

In order to produce products which own the same properties and areloved by consumers each time, all properties of products are dened. Theprocess and nal product specications are prepared, involved in thequality plans and provided to plants.

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In the general product and process quality assessment, consumerapproach is taken as a basis. If all controlled properties are GREEN, the

product is considered as GREEN. If any of the properties is YELLOW, theproduct is considered as YELLOW at the time of control.

If the result is received in RED area due to any property, related control isconsidered as RED. Aimed at ensuring consumer appreciation, thisassessment is based on consumer perspective. Because, when aconsumer nds any problem in our product, he/she will qualify theproduct as defective, no matter how convenient other properties of theproduct are Therefore the aim is to produce products which conform with

‘Green’limits indicate that a

product and a process areaccurate, and that our productssatisfy our customers. Our goal

is to operate within Greenlimits at all times.

‘Yellow’ limits indicate that weare unable to satisfy

consumers and that measuresbe taken at once. Working

within yellow limits is not viablein the long run and it

must be ensured that greenlimits are achieved.

‘Red’limits indicate that our

products are being rejectedby consumers. In case of redlimits, assembly line must be

stopped, measures must be takenquickly and limits must

be shifted to green ones.Products processed

within red limits are notdelivered toconsumers.

!

iv. Clear and easy-to-understand denitions in specications

Specication limits related to parameters to be assessed must be clearand easy-to-understand. While determining the values, limits shouldn't beset to allow both yellow and green or both yellow and red areas. Controlparameters shouldn't be open to interpretation, and green/yellow/redareas must be separated clearly. The method to be followed byoperators/process quality team regarding green/yellow/red limits must

3rd SECTION R . 0

0 .

1 4

PRODUCTION



operators/process quality team regarding green/yellow/red limits mustalso be stated.

All employees must have been trained on the specications related totheir eld of operation. We must carry out production in a way thatconforms to the specications related to every stage. For this purpose,every employee must make sure that he/she is informed about and able

to apply the specications related to his/her eld of operation.

R . 0

0 .

1 4

M I T

A C T I O N F O R A L A R M

L I M I T

A

C T I O N F O R R E J E C T I O N L I M I T

C o o l i n g t e

m p e r a t u r e s e t p o i n t a r e b r o u g h t t o

b y

c h a n g i n g t h e d e f a u l t v a l u e .

I f t e m p e r a t u r e s d o n o t r e a c h t h e s t a n d a r d v a l u e ,

p r o d u c t i o n i s s t o p p e d a n d

i n f o r m a t i o n i s

g i v e n t o t h e f o r e m a n .

B l o c k a g e

s i n t h e t u n n e l a r e s e p a r a t e d

t o

c o m p

l e t e t h e c o o l i n g p r o c e s s l a t e r .

T e c h n i c a

l m a i n t e n a n c e t e a m i s

i n f o r m e d

f o r d e f e c t .

W a f e r s w

h i c h h a v e h i g h m o i s t u r e c o n t e n t

a r e s e p a r a t e d .

M o i s t u r e c o n t e n t i s m a i n t a i n e d i n g r e e n l i m i t s

b y c o n t r o

l l i n g o v e n m o l d t e m p e r a t u r e a n d

d o u g h d e n s i t y

T h e p r o d u

c t i o n i s s t o p p e d ,

p r o d u c t s h a v i n g

p r o b l e m a

r e s e p a r a t e d .

T h e o p e

r a t o r a r e i n f o r m e d t o c o n t r o l o f

b l o w i n g

d u s t , s p r i n k l i n g a n d i m m e r s i o n

f o r v i b r a t i o n .

G r e e n p r o d u c t s p r o d u c e d i n

s t a n d a r d i n t e r v a l s t o e n s u r e t h a t p r o d u c t i o n

i s m a i n t a i n e d a f t e r .

T h e o p e r a t o r a r e

i n f o r m e d t o c o n t r o l

o f b l o w i n g d u s t ,

s p r i n k l i n g a n d

i m m e r s i o n f o r

v i b r a t i o n .

G r e e n p r o d u c t s

p r o d u c e d i n

s t a n d a r d i n t e r v a l s

t o e n s u r e t h a t

p r o d u c t i o n i s

m a i n t a i n e d a f t e r .

H u m i d i t y o f t h e g r e e n

l i m i t s t a k e n b y

c o n t r o l l i n g o v e n

m o l d t e m p e r a t u r e s

a n d

d o u g h d e n s i t y .

T e m p e r a t u r e s e t t i n g s

a r e c h a n g e d u n t i l

i t r e a c h e s g r e e n

l i m i t s .

a n

m m

a n o l e

r ea

c e e s

S t a t u s : P u b l i s h e d



o f P

r o c e s s S p e c i c a t i o n

:

f o w D

e s c r i p t i o n

C o n t r o l

T y p e

P a r a m e t e r

C r i t i c

U n i t

L O W E R

R E J E C T I O N L

I M I T

L O W E R A L A R M

L I M I T

T A R G E T

U P P E R A L A R M

L I M I T

U P P E R

R E J E C T I O N L I M

G r e a t e r t h a

2 m m o

r 2 m

s m a l l e r t h a

t h a t o f t h e h

3 i s n o m o r

t h a n o n e t r a

o f a i r b u b b l

2 1 2 , 5

1 2 , 2

5

1 , 5

0 , 1

9 , 5

6 , 7

5

6 , 5

- - - -

- - - -

A m a x i m u m o

f

2 p i e c e s o f

2 m m s

m a l l

a i r b u b b l e s

c a n b e e x i s t e d .

A m a x i m u m o f

2 p i e c e s o f

2 m m s

m a l l

a i r b u b b l e s

c a n b e e x i s t e

d .

A m a x i m u m o

f

2 p i e c e s o f 2 m m

s m a l l a i r b u b b l e s

c a n b e e x i s t e d .

G r e a t e r t h a n

2 m m o

r 2 m m

s m a l l e r t h a n

t h a t o f t h

e

h o l e 3 i s n o

m o r e t h a

n

o n e t r a c e

o f a i r b u b b

l e s

C e l s i u s

° C % m

m

Y E S

Y E S

Y E S

T e m p e r a t u r

e

o f w a f e r i n

c o o l i n g

t u n n e l

H u m i d i t y

A i r B u b b l e

P h y s i c a l

L I N G

T U N N E L

O F H

1 2 0 O V E N

M I Ş B

İ R İ M

G O F R E T

P h y s i c a l

P h y s i c a l

ss

S p e c i f c a t i o n

e : 3 1 0 3 2 0 5 - 0 3 Ü L K E R C H O C O L A T

E W A F E R 4 0 G P S G - 4

: 1

P l a n t : C h o c o l a t e 2

L i n e : W a f e r 4


N o : 0 3 1 0 3 . 0

1

P u b l i s h i n g D a

t e : 1 4 . 0

2 . 2

0 1 4

N

L I N E

F O R M U L A T I O N

C O D E

W

A F E R 4

Y 0 0 2 0 5 0 5

P L A C E A N D

A M O U N T O F

S A M P L E

R E C O R D I N G

R E S

P O N S I B L E

T E M P E R A T U R E G A U

G E

S A P

S A P

S A P

S A P

O

P E R A T O R

O

P E R A T O R

O

P E R A T O R

Q U A L

I T Y F O R E M A N

Q U A L

I T Y F O R E M A N

1 W A F E R / O V E N E X I T

V E R I F I C A T I O N

R E C O R D I N G F O R M

L A

B O R A T O R Y

R E

S P O N S I B L E

3 W A F E R U N I T S /

B E F O R E P A C K A G I N

G

A F T E R C O O L I N G T U N N E L

3 W A F E R U N I T S /

B E F O R E P A C K A G I N

G

A F T E R C O O L I N G T U N N E L

E : 1

4 . 0

2 . 2

0 1 4

P A G E : 1 / 1

P . 0 0

2 0 5 - 0

5 . 0

1

R E V I S

I O N N O : 0 0

R E V I S

I O N D A T E :__



fP r o c e s s Q u a l i t y P l a n :

P R O C E S S Q

U A L I T Y

P L A N

P R O D U C T N A M E

P R O D U C T C O D E

0 0 0 2 0 5 - 0 5

4 0 G U L K E R C H O C O L A T

E W A F E R

S S S

T E P

C O N T R O L

P A R A M E T E R S

C R I T I C

C O N T R O L D E V I C E

C O N T R O L M E T H O D

C O N T R O L

F R E Q U E N C Y

R

L I N G

N E L

T E M P E R A T U R E o f

W A F E R I N C O O L I N G T U N N E L

Y E S

T H E R M O M E T E R I N L I N

E

R E A D I N G T H E T E M P E R A T U R E

G A U G E O N T H E C O O L I N G T U N N

E L

O N C E I N E V E R Y

4 H O U R S

O N C E I N E V E R Y

4 H O U R S

O N C E I N A S H I F T

O N C E I N A W E E K

O N C E I N A H O U R

T W I C E I N A S H I F T

Q Q

E R O

F

O V E

N

W A F E R M O I S T U R E

Y E S

Y E S

R A P I D M O I S T U R E M E T E R

1 W A F E R I S G R I N D E D A N D S A M P L E

I S T A K E N A S 3 - 5 G / A N A L Y S I S

I S

D O N E A C C O R D I N G T O I N S T R U C T

I O N

O F R A P I D M O I S T U R E M E T H O D

1 W A F E R S A M P L E I S T A K E N /

A N A L Y S I S I S D O N E A C C O R D I N

G

T O I N S T R U C T I O N O F D R Y I N G O V

E N

D R Y I N G O V E N

A T E D

R U N

I T

B U B B L E O F P R O D U C T

S U R F A C E

V I S U A L

3 U N I T S o f C O A T E D W A F E R

S U R F A C E A R E C H E C K E D I N

T E R M O F B U B B L E S A N D I F T H E

R E

A R E B U B B L E S ,

T H E Y W I L L B E

M E A S U R E D W I T H S P E C I A L R U L

E R

m i t s

a r e

b a s e

d o n s p e c

i c a

t i o n s w

h i c h

a r e p u

b l i s h e

d i n O o

S .

n s a

b o u

t a c

t i o n s

i n y e

l l o w

l i m i t s a n d

r e d r e

j e c

t i o n

l i m i t s a r e

b a s e

d o n

s p e s

i c a

t i o n s w

h i c h a r e p u

b l i s h e

d i n O o

S .

P R E P A R E D B Y

A P P R O V E D B Y

E N F O R C E M E N T D A T E

Q U A L I T Y A S S U R A N C E M A N A G E R

Q U A L I T

Y A S S U R A N C E D I R E C T O R

D O C U M E N T C O D E :

K P

g. Taking Actions as a Result of Controls

All controls performed at the line and/or in the laboratory as specied inthe quality plans are assessed as a whole. It is decided either to continueproduction or take precautions depending on the green/yellow/reddenition of controlled products or processes.

i. Green

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i. Green

All properties required to produce a product loved by consumers aredened with GREEN value limits. Control results within GREEN limitsindicate that products are produced with the properties desired byconsumers.Our target is to work within GREEN limits in every stage throughout the

production.

ii. Yellow

Control results within YELLOW limits indicate that we fall below consumerappreciation level, controlled property is within ALARM limit andprecautions must be taken immediately. In this case, operators must takeprecautions immediately, and record and track the precautions. Operatormust see if precautions are useful or not. If there is a parameter that canbe controlled, the operator tracks the improvement of the value or if theparameter should be tracked by analysis results, he/she performs theanalysis or transfers the product to laboratory to get the analysis done,and tracks the result. The aim is to shift the product to GREEN limits assoon as possible.

If precautions taken following the determination of YELLOW limit aren'tsufcient enough, and the result is still within YELLOW limits despite thecorrections, the operator takes precautions one more time. If problemisn't solved even after the second control, the operator noties thesupervisor.

Persons in production, quality and R&D departments who may contributeto solution of the problem are notied, and required work is conducted.

It is not allowed to intentionally work within YELLOW limits duringproduction (for example, oven temperature, % water value, malformation,etc.) When it is required to continue working within YELLOW limits inobligatory cases, a risk assessment is performed as part ofNON-CONFORMANCE MANAGEMENT, and production continues once thenecessary approvals are obtained (See Section 3 Part 7).

iii. Red

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Control results within RED limits indicate that products rejected byconsumers are produced, and a situation dened as REJECTION limit ispresent. In this case, operation is SUSPENDED immediately. Operatorsnotify their immediate supervisor and quality chief regarding the problem.

Necessary precautions are taken immediately, precautions are recordedand tracked by starting a notication. Operator must see if precautionsare useful or not. If there is a parameter that can be controlled, theoperator tracks the improvement of the value or if the parameter shouldbe tracked by analysis results, he/she sends a sample to laboratory foranalysis and tracks the result. It must be ensured that the related limitsare shifted to the acceptable GREEN limits. After solving the REDproblem, production continues.

When a RED result is detected, the line operator is authorized tosuspend the production; lay off the products.

The aim is continuity of production under conforming quality standards.Except for production supervisors who will contribute in the solution; R&D,Quality and Maintenance departments must support the performance of

required corrections in production, as a priority. Even if the incidentoccurs during the night or at the weekend, all employees whose supportis needed to restart the production in an appropriate way must go to theplant as soon as possible.

Yellow Limit;

3rd SECTION

PRODUCTION

Take Action

Yellow Results/Control Results



h. Specication Non-Conformities: Red

i. Suspension of the line

When a ‘red’ limit is present in control results, the line is suspended andthe products which are produced at the time are separated and notallowed to be packed.

With the personnel authorized to operate the line being of top priority, all

employees who are informed trained and responsible about the matterare authorized to suspend the line

Record the actions& continueproduction

Testi Tekrarla /Kontrol et

Notify yoursupervisors if the

problem isn'tsolved

Shift limits toGreen or suspend

production

Suspend production,pack the products which

are produced after the problem issolved. Inform Quality Departments,

block the problem products.

Repeat theTest / Control

Suspension of production must be performed immediately to prevent theproduction of products under non-conforming conditions, and theincrease of losses. The aim of line suspension is preventing the increasein the amount of problem products/semi-nished products.

The process of producing the problem products and separating later withthe aim of production continuity is an approach that increases not only

the costs but also the quality risks. Therefore, it isn't deemed suitable asf li

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part of our quality systems.

Example 1: In an adverse situation encountered at oven output,instead of turning off the oven, it is expected to stop product feed atthe rst possible point and also packaging of products, by means ofsuspension. The reason of including packaging process insuspension

production is a possibility of red products in the packaging line.

Example 2: In a red situation related to packaging, packagingmachine must be turned off and required adjustmentsmust be made. After separating the rst productsproduced during start-up and adjustment of themachine, packing must be continued with the conformingproduct start-up.

Example 3: When a red value is seen in the product/semi-nishedproduct in the tank, the related batch shouldn't be opened forproduction. Re-work products or rejecting process must beimplemented.

ii. Authorization

When worked within ‘red’ limits, rst degree line operator/mechanic isliable and responsible for the suspension of production.

Line operator/mechanic is also responsible for tracking the analysis andmeasurement results, and resuming the production.

These authorizations and responsibilities must be clearly dened in the

role descriptions of operators/ mechanics

Related role descriptions must be arranged in accordance with the humanresources procedures, approved and maintained within the knowledge ofemployees.

iii. Separation of products and semi-nished products

In case of a red measurement or production condition, products which areproduced at the time are separated by the production department.

Q lit d t t l t ll d t hi h h b

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Quality department also separates all products which have beenproduced since the last acceptable (green or yellow) control results.

Products are separated at the production site and transferred to areasspecied for quarantine/blockage. Blockage decisions applied at theproduction site or warehouses are dened on the pallets clearly.

Denitions must include the following information:

Product name/Blockage code/Responsible person/Date

iv. Notication of relevant individuals

In case of a red measurement or production condition, operator suspendsthe line/operation and noties his/her immediate supervisor and quality

chief immediately. If the problem isn't solved after primary reviews,production, quality, R&D and maintenance supervisors are notiedimmediately and required precautions are taken.

Planning, logistics, production departments and work departmentmanagement are notied by the quality department regarding the blockedproducts. The persons who were involved in the rst notication are

notied about the control results and required actions (transfer, reprocessor scrap) are taken.

If blockage decisions include shipped products, responsible personsidentied from the planning or sales company are notied, and productsare blocked in the warehouses.

If a blockage decision is made as a result of controls performed during orafter production incident notication must be given in accordance with

Blockages over one pallet are included in incident class 2 andquarantines of 50 or more pallets must be reported as part of incidenceclass 1 (See Section 3 Part 8).

v. Correction of problem and resuming production

Precautions must be taken rapidly in order to solve the problem as soonas possible and shift the limits to desired values. At this stage,

maintenance, R&D, quality and all required supervisors work on theproblem If the actions taken are adequate and action results are

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PRODUCTION



problem. If the actions taken are adequate and action results areacceptable, production can be resumed. An agreement must be reachedon the conformance of results.

In obligatory cases, if it is requested to resume production in a way thatdoesn't conform to the specications, Non-Conformance Management

process must be started. Risk assessment is made and opinions of therelevant departments are taken. Following the completion ofnon-conformance management process, production is allowed by theapproval of General Manager, Vice President, Group President and GlobalInnovation and Quality Group President (See Section 3 Part 7).

vi. Control of blocked products

Control of blocked products is performed under the responsibility ofquality department. Separated products are sampled and controlled inaccordance with the size of batch, as specied in the samplinginstructions of factories. Products without any problem are released tothe market whereas problem products are discarded or transferred toscrap.

For the controls of products which are stored in logistics or distributorwarehouses due to blockage decision, plant quality personnel takessamples from the relevant warehouse, where applicable, and thesesamples are reviewed. If this is not possible due to the distance and time,samples are brought to the plant with the support of sales team inaccordance with the description provided by the quality department.According to the prevalence and risk of the problem, products arewithdrawn to the plant warehouses for review; scanning and controlprocess is performed This decision must be made with the approval of

vii. Records

Non-conformance (incident) case is opened for red limits. Actions aretracked, and non-conformance (incident) case is closed so that it includestaken precautions and improvements performed about separatedproducts. (Less than one pallet is reported as part of class 3, 1-50pallets as part of class 2, fty and more pallets as part of class 1.) (See

Section 3 Part 8).

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Each blockage situation must own a unique record number (BLOCKAGECODE) and these codes must be tracked by the quality department froma general list. This Blockage Code must be used in the labels of blockedproducts, incidents, all related notications and records. These codesmay either be automatic sequence numbers received from the SAP or a

similar system, or dened by means of a manual index to be created byquality department (See Section 3 Part 7).

Records related to product blockages and red limits must be reviewed atdaily, weekly, monthly and annual intervals, and precautions must betaken to prevent recurrence of the problem.

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Red Limit;

Suspend the production,notify your immediate

supervisor and qualitydepartment

Red Analysis Result



IFTHE RESULT IS

GREEN

IF THE RESULT IS

YELLOW

IF THE RESULT IS

RED

Take Precautions:perform the required corrections

in the process and separate the products

Repeat the Analysis

Start production ina controlled manner,make adjustments

Repeat the Analysis

If the result is still Yellow,notify your immediate

supervisor

Record andContinue Production

Production isn't starteduntil the problem issolved; suspend the

products(do not pack in case

of nal product)

Case Study:Red Product Determination and Actions For Process Limits

Keeping the nish product attributes determined in specication till it is

reached to consumer is very important regarding consumer satisfaction

level. Therefore, being sensitive about process and nish product by

operators prevents to potential consumer complaints.

10 piece Cherry Menthol chewing gum has been started to packed at line1

as scheduled in production plan 3rd week of June Routine cleanings were

3rd SECTION

PRODUCTION



as scheduled in production plan 3rd week of June. Routine cleanings were

completed and all required raw materials were picked up from warehouse

into production area. Production has been started after cleaning approved

by both production and quality foreman. Operator Süleyman Bayri didn’t

determine any problem in taste during his control before production run.

After startup, Süleyman Bayri picked up 5 packs of product samples and

started his hourly controls on the table on which specications are hanged.

Dates on pack were legible and clear, all pack attributes between

specication limits, no visual problem regarding package. Also he checked

opening strip, there was no problem with it and then he started to check

weights which are in limits.

During the product defect controls he realized a peeling problem which isout of specication on top corner of coating. He opened another pack

based on the instructions to check that the red situation continues and

saw the problem in also this pack. He has stopped the line and call the

production and quality foreman urgently. Production foreman came to line

and evaluated the problem with quality foreman; they noticed that only

one of 10 products in the pack has the problem. Production and quality

supervisors have been informed about the case.

All packed and unpacked products produced in last one hour were

transferred to quarantine area after nonconformity form lled. At the same

time changeover cleaning was completed and line started to run for next

product scheduled to prevent long time discontinuity. Production and

quality supervisors informed their managers about this nonconformity.

R&D, Quality and Production functions investigated the breakage problem

by root cause analyses Finally they xed the cause as Isomalt coatedd t it d th 2 h i b ittl t d t t B

As a solution, for isomalt coated products they decided to make sifting process before embrittlement process and not to store in embrittlement

department more than two hours. Related functions have been informed

about this action.

To prevent extra breakage in sifting and feeding processes it was decided

to put a cushion at tipping point. By solving the problem which operator

found out, a possible consumer compliance is prevented.

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i. Specication Non-Conformities: Yellow

i. Correction of problem

In raw material, packaging material, production, machine or capacity

related cases, limits are observed within YELLOW area from time to time.This indicates that we fall below consumer appreciation level and workwithin ‘Yellow’ limits. Precautions must be taken rapidly for the correctionof problem. If precautions are taken in due time, results' shift to ‘red’area is prevented and continuity of production is ensured.

When any control result is determined within YELLOW limits, precautions

taken are described in the ERP (SAP, AS400 or alike) system or manuallykept forms, and whether the precautions are useful or not is conrmedthrough analyses and controls. If there is an analysis to be performed inlaboratory, support is requested from the laboratory, and conformance ofthe precaution is tracked by the line operator.

If any YELLOW result is detected and precautions to be taken aredescribed in control plans, those precautions are taken. If the problem is

beyond the knowledge and experience of operator and encountered forthe rst time, the operator noties his/her supervisor and requestsassistance.

Operators are responsible for the correction of problems. Working withinyellow limits for a long time is not allowed.

ii. Failure to bring results into the Green category

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PRODUCTION

YELLOWDetection

TakePrecautions

Conrmthe

Precaution

Taken

TakePrecautions

Again

Notifythe

Immediate

Supervisor

Notifythe

Quality

Team

Operator Operator Operator Operator

Foremen/ShiftSuperintendent/Line

Engineer Chief

YELLOW YELLOW



Yellow limits indicate a situation which should be corrected rapidly; its

continuity cannot be accepted. If precautions taken are inadequate,immediate supervisor, production chief, quality and related departmentsare notied. It is ensured that required precautions are taken.

Despite the work conducted, if continuity of production within yellow areais requested as obligatory (The maximum duration is decided based onthe plant and product and stated in the relevant instructions; the generalreference time would be one shift.) the process of NON-CONFORMITY

MANAGEMENT must be commenced: Risk assessment is made; opinionsof the department are taken; an assessment is submitted for theapproval of the general manager and the vice president. Production maycontinue after the completion of approvals (See Section 3 Part 7).

iii. Records

Actions taken for yellow limits and results of the tracking are recorded inthe record system by the production operator. Actions taken for yellow alarm limits must be reviewed at daily, weekly,monthly and annual intervals, and precautions must be taken to preventrecurrence of the problem.

ResumeProduction

GREEN

Case Study:

The method followed when yellow process limits cannot turned into greenlimits:

Process specication yellow limits are critically important in to take action

on time and to prevent turning into the red limits. As seen in the example

below, the risk of having big amount of products in red limits waseliminated when the operator, recognized working in the yellow limits, took

h i i

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the preventive actions.

In 15th Jan 2014, in rst shift (between 07:00 and 19:00), when the 2nd

Plant Oven Operator, based on the quality control plan, checked the

humidity of dough at 11 o’clock in the dough cooling line exit, he

recognized that the humidity value was at yellow limit in the specications.To turn into the green limit, he increased the cooker temperature 4°C and

recorded the preventive actions for the yellow limits on SAP system. To see

if the oven temperature adjustment works, he checked the actual

temperature of the oven, and also checked the dough humidity by putting

the dough sample into the humidity control device in each 20 minutes. On

the other hand, to see if there are any negative causes of increasing the set

temperature, he has frequently checked the cooked dough visually at the

oven exit.

During the check, he found out that the actual oven temperature wasn’t

increased and after 15 minutes still the humidity value didn’t turn into the

green limits. Despite a continuous increase in the oven set temperature,

actual temperature of the oven was not within the green limits, as a

consequence of this, dough humidity value didn’t decrease and remained

in the yellow limits. Therefore, he immediately informed the productionforemen. To examine the situation, production foremen called the quality

foremen and asked him to check the dough limits at the exit of the oven

in the second line. The product control results were in the green limits so

that there wasn’t any sorting out for the products. But the maintenance

team was informed immediately due to the dough humidity value was still

in the yellow limit. The oven was checked by the maintenance team. During

the maintenance, it was found out that one of the burner didn’t work and

thus didn’t heat the oven

In order to solve this problem maintenance team had to respond to the gas

line related with the corresponding burner. However during the

maintenance the production couldn’t be done. Not to work in the yellow

limits, quality assurance supervisor discussed with the production

manager and they agreed on to make improvements on the oven. The

production stopped and the oven burner was xed. When the production

started, it was observed that the oven temperature was at requested level

and the dough humidity value was on the green limits as dened on the specications. Furthermore, as a result of this problem, it was provided to

re ise the maintenance plan and n t t face this pr blem again

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revise the maintenance plan and not to face this problem again.

3. 5. FINISHED PRODUCT QUALITY

The same high quality in every package at all times can be achievedthrough an efcient process quality control. Performance of controls onsite, in due time and by the responsible people is the most accuratemethod for efciency, quickness, cost and sustainability. For this purpose,we control our process conditions, intermediate products and products in

every stage from raw material incoming to completion of packaging.

Fi i h d d hi h k d d d b ff d

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Finished products, which are packed and ready to be offered to ourconsumers, are controlled visually by the consumers. The aim is theconrmation of the results of all work performed throughout theproduction stages, and the quality of nal product.

Control of Finished Product Quality

Production Scoring

Warehouse Scoring

Contract Supplier Products Control

Reference Product Samples

Shelf Life Controls

The products are controlled before beingreached to the consumers

The product’scontrols continue

after the products werereached to the

consumers

Finished Product Quality

a. Control of Finished Product on the Line

Products which are packed, put into boxes and parcels, and palletized areconsidered as nished products. Finished product controls are performedas follows: a parcel of products is taken from the line and the parcel, box,department package and bare product are controlled in accordance withthe ‘Final Product Specications’ as specied in the quality plan.

Packaging operator is responsible for performing the nished productcontrols Along with the controls performed by him/her the products must

3rd SECTION

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controls. Along with the controls performed by him/her, the products mustbe analyzed with the support of laboratory.

Quality foremen perform controls within the scope of specied samplingplan, and share the results with production department.

Finished product controls performed on the products undelivered towarehouse are involved in the process quality activities. Assessmentresults must be as follows:

o Green products are target products and released without aproblem.

o For yellow products: The process stage which causes the products

to be yellow is determined, precautions are taken rapidly and it isensured that the results are green after the improvements.

o If there is a red product, packaging is suspended. Red products areblocked, and notication, taking precautions, tracking, record andproduction resuming stages are implemented.

b. Production Scoring

Scoring is the process of checking the nished product specications forconformance to specications prior to shipment. These controls areperformed at specied times in each shift by participation of therespective line operator, the production and process quality foremen andthe production and quality assurance engineer/chief/manager.

The fundamental principles to be applied must also be dened in theplant instructions in accordance with the rules listed below Target rules

• Frequency: Scoring must be performed per shift• Product list: Scoring must include all products produced during the

shift.• Participants: Participants must be identied in the scoring

instructions that must be disclosed to the plant personnel.Additionally, target participation ratios shall be determined andturnout must be published regularly by the quality department.

Participants must attend scoring as follows;

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o Operator, quality assurance and production foremen = every shift o Production chief, quality assurance chief and panelists = daily o Quality assurance manager, production manager = three days a

week o Plant director = two days a week o General Manager = once a month

In each shift, multiple groups may be set up to perform scoring onproducts from all production lines.Thus, all lines are checked within theallotted scoring duration.

• Scoring location: Controls should be done at a reserved section of the

production area or by a packaging machine at a plant. Tastings areperformed and assessed at the predetermined taste control points at theproduction site in accordance with the specications.

• Scoring sample: A random parcel is selected from the palletizedproducts manufactured during the shift. Packaged and bare productcontrols are performed on one parcel, one box and between one - ve

units in accordance with the “Final Product Specications”.

• Assessment topics: Though particularly dened per product in thespecications, the nal product assessment generally includes thefollowing headings;

o Parcel, box, inner packaging conformance o Conformity of product’s internal appearance, defects

o Product texture composition

o Weight o Critical analytical measurements o The conditions of neither exterior nor interior packaging are

considered for by-products and bulk products.

• Evaluating the control results: The control results are evaluatedaccording to the properties and limitations stated in the “Final Product

Specications” and recorded in scoring forms as green (approval), yellow(alarm) and red (rejection). As a result of the assessment, preventivemeasures and practices for yellow or red products are implemented similar

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to nal product control at the production line. They are executed as statedin section 3 part 4g “Taking Actions as a Result of Controls”.Each product that has been evaluated shall be assessed separately. Ex. Ifthere are 4 participants in the scoring; checking 4 products; the resultsshall not be summarized to one result but shall be recorded and measured

as 4 different results.

• Archiving: Production scoring evaluation forms are lled out daily andthen archived for calculation of monthly green / yellow / red ratios.

• Procedures to be applied to evaluated products: Controlled productswith unsealed packaging must be kept separate to prevent from mixing with

other products. Opened packaging materials should be discarded in thepackaging waste bag and the bare products that came into contact shouldbe disposed of at scrap. Boxes and parcels that are short of productsshould be delivered to the plant operator to replenish.

Sample Production Scoring Evaluation Form and Calculation of ScoringRatios:

Production scoring evaluation form sample and calculation of scoring ratiosare explained using the below example of a plant that produces three kindsof products daily.

As for the calculation of the monthly scoring ratio, it is computed byaggregating the number and the evaluation results of the scoring samplesevaluated daily at the month-end.

The monthly production scoring average is calculated by taking the ratio of



Example Calculation of Production Scoring Monthly Rates:

3rd SECTION

PRODUCTION

MONTHLY EVALUATION

1

2

34

5

10

15

1214

11

3

0

31

2

2

0

00

2

G Y R



6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2526

27

28

29

30

31

15

13

9

12

15

15

14

13

15

15

14

14

12

15

15

15

15

14

14

1313

15

13

15

15

15

0

0

4

3

0

0

1

1

0

0

1

0

2

0

0

0

0

0

0

22

0

1

0

0

0

0

2

2

0

0

0

0

1

0

0

0

1

10

0

0

0

1

1

00

0

1

0

0

0

425 26 14Total

(number)

c. Warehouse Scoring

Warehouse scoring is the process of performing product controls atshipment warehouses with the purpose of evaluating the products andverifying the product quality is preserved following shipment from theplant. Thus, statistical data is gained on the general condition of ourproducts prior to reaching consumers and preventive measures are taken

should there be situations that require involvement.

Warehouse controls are performed by the quality assurance team per the

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warehouse scoring plan. Where necessary, participants from theproduction team may be provided. The fundamental principles to beapplied must be dened in the plant instructions. These principles;

• Frequency: Warehouse scoring should be planned so that it isperformed at least once a week.

• Product List: The product list is prepared by planning for at leastonce a month evaluation of all product types produced weekly. Theattainment or lack thereof controls on the entire product portfolio, astargeted in the monthly quality reports, must be statistically monitored.

• Participants: Warehouse scoring is performed by the quality teams,and where necessary, participants from the production team may beprovided.

• Scoring location: The products from the warehouse should bereceived / selected by the quality team. Warehouse scoring assessmentscan be conducted in the product storage area within the warehouse and

also at plants.

• Scoring sample: Upon determining the product list, product controlsare performed on at least one parcel, one box and one to ve units of oneproduct in accordance with the “Final Product Specications”.

• Assesment topics: Though particulary dened per product in thespecications, the nal product assessment generally includes the

f ll i g h di g Th ti h



R

. 0 0 .

1 4

O R M

I T A G E

F I N I S H E D

P R O D

U C T S P E C S

P A R A M E T E R 1

F I N I S H E D

P R O D U C T S P E C S

P A R A M E T E R 2

F

I N I S H E D

P R O D U C T S P E C S

P A R A M E T E R . . . . .

R E D

G R E E N

Y E L L O W

R E D

G R E E N

Y E L L O W

R E D

G R E E N

Y E L L O W

R E D

Y

R

Y

Y

R

R Y G G G G Y R G Y G G Y G G G G Y G G R E S U L T



W A R E H O U S E

S C O R I N G E V A L U

A T I O N F O

P R O D U C T

N A M E

V A R I E T

Y

N O

P D / E D

P R O D U C T I O N W E E K

L O T N O

D U R A T I O N

T I M E I N W A R E H O U S E

P A C K A G E

B

O X

U N I

P A C K A

G R E E N

Y E L L O W

R E D

G R E E N

Y E L L O W

R E D

G R E E N

Y E L L O W

1 .

V A R I E T Y P R O D U C T

2 .


3 .


4 .


5 .


1 .


2 .


3 .


4 .


5 .


1 .


2 .


3 .


4 .


5 .


1 .


2 .


3 .


4 .


5 .


Y

Y

Y



f. Shelf Life Controls

Shelf life controls are performed to check if a product has changedphysically, chemically and in sensory characteristics when stored underthe specied conditions.

For this purpose, reference samples are taken according to the control

frequencies specied by each plant for its products, and controlled.Results are entered in the system (ERP, form) by quality department.

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g. Contract Supplier Products Controls

Each business unit must evaluate the subcontracted products as nished

products produced within its own plant and they must pass the necessarycontrols before offered for sale.

The production of subcontracted products in approved suppliers and insuitable quality standards is in the responsibility of the business unitquality assurance manager. Planning and execution of the subcontractedproducts should be done in this content.

Each business unit should prepare instructions with informationconcerning the scope, the responsible supervisor, communication andunique methods for controls on subcontracted products.

Subcontracted products are delivered to a warehouse, either thebusiness unit’s or a common warehouse, for approval per the principles

established by the business unit. After the completion of productsampling process, for which warehouse scoring practices are used, thecontrols are performed on subcontractor products in accordance with the“Final Product Specications Conforming products receive the qualityconformity approval which begins the process for the release of productsfor sale in the market. In the event of nonconformity, the products arerejected. The subcontracts supervisor at the business unit communicatesthe necessary information to the subcontractor.

Upon production completion and prior to the delivery of the products tothe warehouse, the subcontracts supervisor may perform, when deemsnecessary, the product controls in accordance with the “Final ProductSpecications” by using the sampling method dened in the productionscoring practices.

Subcontractors must be subjected to evaluation on specications and

product assessments, perform production and warehouse scoring andmaintain a quality score card on the products in order to achieve expectedstandards in product quality and safety. When needed, the subcontractssupervisor may request associated records to inspect the practices.

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p y q p p

3. 6. POST - PRODUCTION

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Proper productsare deliveredto warehouse

Semi rawmaterials andpackaging materialsare delivered from

the lines to

The reworksof productionare evaluatedaccording to

R k M g t

Post - Production



a. Delivery of Products to WarehouseOur products with the desired target values in process and nishedproduct controls are delivered to warehouses to be transferred to eld.During the delivery of products to warehouses, the following are crucial:

• Preserving the batch numbers which contain product identicationinformation (including all stages and control results of products from

raw materials to nal product) • Ensuring the conditions which are specied for the prevention of any

change in the product during shelf life

Delivery of our products to consumers with desired properties. Therefore,before delivery of products, these properties are stated to warehouseswhere the delivery will take place at plant release. After ensuring that

warehouses provide these conditions, products are delivered to thewarehouses.

b. Return of Remaining Materials

After completion of the planned production amount, the remaining rawmaterials and packaging materials aren't stored in the production site.Considering to use these materials in another production:

warehouseRewark Management

• They are put in their original package. • The batch number which is provided by the raw material warehouse

and signicant for traceability is preserved. • They are covered so that they are not affected by the external

environment.• They are delivered to the raw material warehouse.

At this stage, production department is responsible for delivering theremaining materials to the warehouse in a suitable way; warehouse isresponsible for receiving these materials in a suitable way and ensuringthe conformance of storage conditions.

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c. Rework Product Management

At the production stage, re-work product refers to theproducts/semi-nished products which are conforming in terms ofcontent and taste but have a worn-out appearance which cannot beoffered to consumers pursuant to work principles of the company.

Re-work products are used in product recipes either by reprocessing ordirectly mixing. Therefore, like all the other ingredients, re-work productsare considered as “raw materials” and used in such a sensitive manner.

All re-work products must be packed and labeled in an appropriate way.The label must contain the re-work product description, code, content,production/expiration date, plant name, amount and batch no.

Storing, planning and use of re-work products for production must beperformed in the same way with other raw materials. Conforming storageconditions, FIFO rules, tracking of expiration date and traceability must be

ensured. Types and ratios of re-work products used in a product mustconform with the product recipe specications published by the Ofce ofSpecs (OoS).

Production department is responsible for managing the re-work products,and required training is given to the related persons.

Instructions for rework product use must be present in each plant, which

Additionally, specications must be prepared and published for eachre-work product using the following information.

o acceptance criteriao batch number denitions for traceability

o storage conditions o allergen denitions

o shelf life limit o amount to be used in product o reprocessing stages o their use as packed product

3rd SECTION R .

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o special treatment situations

d. Suspension of Production - Protection of Products and

MaterialsWhen production is suspended due to various reasons (machine failure,problem regarding raw materials or packaging materials, suspension formeal, etc.), products, raw materials and packaging materials must beprotected appropriately in terms of food safety and product quality.

Packaging materials and raw materials are packed and protected.

• Exposed product on the machine or around,• Exposed packaging materials on the machine,

• Raw material with an open cover shouldn't be allowed.

Uncovered products must be packed or separated as a waste product;packaging coils connected to the machine must be covered; materials

such as cups must be put into their original packages or coveredappropriately.

If the production suspension period is extended, materials must bedelivered to the warehouse and the line must be cleaned properly. Sincerisk assessment must be performed according to the product type, eachplant must have instructions concerning the “duration of productionsuspension and precautions to be taken”.

When discrete production is performed,

– Semi-nished products/products without packages must be packedfor preservation; proper isolation must be ensured.

– Products must be held under conforming storage conditions(temperature, odor, moisture, cleaning, etc.).

– Like raw materials, these materials must be controlled by the

production and quality departments prior to production. – Controls must be dened in quality plans. – Labeling and recording must be carried out in a manner to prevent

failure of traceability between nal product and raw material.M t l d t t t l t b f d d i k i

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– Metal detector controls must be performed during packaging.

Example: biscuits, chocolate held for packaging after completion ofpre-production processes or biscuits and wafer layers to be used as raw

materials in a different plant.

e. Release of Convenient Products According to Processand Finished Product Controls

Products, which are found eligible as a result of process and controls

performed according to the specications and quality plans, areconsidered to be products which consumers like, according to the Ulkerstandards.

These products are made available for sale upon quality approval aftercontrol processes are completed.

3. 7. NON-CONFORMANCE MANAGEMENT

Non-conformance management describes how the process is to bemanaged in case activities that contradict pre-determined specicationsor procedures are carried out out of necessity.

Situations, the effects of which put our products, overall quality systems,

consumer satisfaction, productivity, sustainability and quality cultureunder risk, must be assessed with accurate data and managed with arelevant approval process. Thus, the risks that pertain to the products,consumers and the reputation of Yıldız Holding will be managed as

3rd SECTION R . 0

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healthily as possible.

Accordingly, the discussion topics are addressed below.

Non-conformance classes:

1. Admission and use of a raw material/packaging material that fallwithin RED limits in the specications, in production.

2. Decision to continue production within the YELLOW - alarm limits setin specications for a certain period of time.

3. Partial or full shipment of products that fall under the RED zone in the

specications.4. Carrying out of off-specication operations (practices that do not

comply with procedures and principles set forth in the quality manualand/or carrying out or allowing the continuation of activities that canbe characterized as system non-conformance in food safetystandards, procedures and instructions)

Process:

The non-conformance management process consists of the followingsteps: lling out of the non-conformance management approval form,completion of approvals, recording and reporting. The activity can beperformed only after the completion of approvals. Launching of an activitythe approval process of which has not been completed and that is hencenon-standard, goes against the fundamental principles of Yıldız Holding.

R&D, quality assurance and production managers is responsible forpreparing the non-conformance management approval form and runningthe process.

The non-conformance management approval process is launched underthe leadership of the quality assurance department by lling out the formupon a request received from the relevant department.

• The quality assurance department identies the category,denition and the cause of the request for approval of anon-standard operation in collaboration with the relevantdepartments

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departments. • After a non-conformance is classied and described generally, it is

presented to the relevant departments for risk assessment.• Risk assessment is performed in ve categories: impact on

product quality; impact on production/process; impact on foodsafety; compliance with applicable law and commercial/nancialimpact.

o R&D and quality assurance departments are primarilyresponsible for carrying out the risk assessment for impacton product quality and impact on production/process,

o Quality assurance department is primarily responsible for

carrying out the risk assessment for impact on food safety,o R&D department is primarily responsible for carrying out therisk assessment for compliance with applicable law,

o General manager of the relevant business unit is primarilyresponsible for carrying out the risk assessment forcommercial/nancial impact.

o All business units and departments can insert their opinionsalso in areas that they do not have primary responsibility (e.g.the production or maintenance departments can insertopinion about food safety; quality assurance departmentinsert opinion in compliance with applicable law)

The root cause analysis for the non-conformance is carried out by thequality assurance manager with the participation of the relevantdepartments. Measures and corrective actions to be taken to allow for

Measures and corrective actions to be taken to prevent the recurrence ofthe same non-conformance are determined by the R&D and qualityassurance departments in collaboration with the relevant departmentsand an action plan is created. The quality assurance department isresponsible for following up with the actions that have been taken andholding regular reviews in collaboration with the relevant departments.

The general manager is responsible for approving and implementing theprocess in the plant.

When a non-conformance management form is submitted for approval,the forms that have been prepared within the last one year concerning

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the forms that have been prepared, within the last one year, concerningnon-conformances that fall within the same non-conformance categoryare enclosed with the form.

After the non-conformance is dened, the root cause analysis is carriedout, risk assessment is completed and measures/corrective actions andpreventive actions are determined, the form is submitted to the GeneralManager, Vice President, Group President, Global Innovation and QualityGroup President in this order. Non-standard raw material/packagingmaterial described in the form can be used and a non-proceduraloperation can be performed, only after obtaining the necessary approvals

and completing the form.

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• The denition of non-conformance• Reason of request about non-standart approval

• Risk evaulation• Root-cause analysis

• Corrective actions, precaution• Preventive actions

Filling out of non-conformance

management approval form

Completion of A l



The relevant business unit records and follows up with thenon-conformance management approval forms by assigning an index

number to each form as it is described below:

Ör: 2014 - ÜBG - 1 - 01:

Approvals

Recording and Reporting

2014 ÜBG 1 01

YEARPlace of ProductionÜlker BiscuitGebze Plant

Non-conformance Class

(1-Red raw material admission)Item No

4. CAUSE of NON-CONFORMANCE

4.1 Root-cause analysis:

NON-CONFORMANCEMANAGEMENT FORM

Page

Form No

Rev. No

Pub. Date/ Rev.Date

PlantDemanding Department Date

1. NON-CONFORMANCE CATEGORY

2. GENERAL INFORMATIONS of NON-CONFORMANCE

3. SITUATION EVAULATION

1. Admission and use of a raw material/packaging material that fall within RED limits in the specications, in production.

(Code, name, party no, supplier,amount and date informations of raw and packaging materials)

2. Decision to continue production within the YELLOW - alarm limits set in specications for a certain period of time. (Code, name, plant, production line, production amount, production date and time of product)

3. Partial or full shipment of products that fall under the RED zone in the specications.

(Code, name, plant, production line, production amount, production date and time of product)

4. Practices that do not comply with procedures and principles (Explanation of situation)

3.1 Reason of demanding on non-standart approval:



5. RISK ASSESSMENT

6. CORRECTIVE ACTIONS / PRECAUTIONS

7. PREVENTIVE ACTONS

5.1. Impact on product quality

5.2. Impact on production/process

5.3. Impact on food safety

5.4. Compliance with applicable law

Non existent

Explanation ( Quality Assurance Manager): Explanation ( R&D Manager):

Existent (Explanation)

Non existent

Explanation ( Quality Assurance Manager): Explanation (Production Manager):

Existent (Explanation)

Non existent

Explanation ( Quality Assurance Manager):

Explanation ( R&D Manager):

Existent

Convenient Non-convenient

(Explanation)

(Explanation)

5.5. Ticari/Finans Etkisi

Explanation ( General Manager):

Non existent Existent (Explanation)

8. PREPARATIONS BY

9. APPROVED BY

Action Completed Date Responsible

1.

2.

R&D Manager Quality Assurance Manager Production Manager

3. 8. INCIDENT SYSTEMCases contrary to procedures, instructions, standards and specicationsthat are effective at Yıldız Holding, outsourced notication such as legalsupervisors, consumer complaints within the scope of quality issues arerecorded and reported for measurement, management and improvementpurposes.

Main headings in the incident management process are as follows:

– Detection of incidents, informing the responsible department in theplant and initiation of actionsRecording and identication of the incident

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– Recording and identication of the incident – Root cause analysis – Determination of corrective actions

– Determination of preventive actions – Completion of activities – Revision

Each plant must have instructions which are compatible with the qualitymanual describing the program infrastructure to be used for the operationof the incidents process, responsible people, timing and review activities.

Quality incidents are evaluated under 4 classes.

1st Class Incidents

2nd Class Incidents

3rd Class Incidents

4th Class Incidents

Critical

Important

Corrective

Remedial Notice



Example: Operation of non-conformance management for the purchase ofraw materials, semi-product, packaging not conforming to thespecication

Example: Operation of non-conformance management when long-termoperation is needed in yellow range

Example: Cases where non-conformance management is implemented fornished products outside specications.

• Recall from distributor and logistics warehouses • Quarantine due to food safety, product quality, raw materials or

k i (1 ll t 50 ll t )

3rd

SECTION

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packaging (1 pallet - 50 pallets) • Re-testing raw materials and semi-products with expired shelf life • Rejection of raw materials or packaging, which cause the cessation

of production more than 8 hours. • Regarding food safety, Determinations within the scope of

"Unsatisfactory" not completed within the same day• Consumer Complaints Notications

Record: Related incidents will be recorded within the scope of the plantincident management under the category IMPORTANT by quality

assurance.

Reporting: IMPORTANT incidents will be reported on a daily basis toGlobal Holding Quality Assurance Department. Plant Quality AssuranceManager is responsible for reporting. These reports are centrallyconsolidated and presented to senior management.

Plants continue to separately carry out incident reporting process

operating within Yıldız Holding's general procedure of incidents.

Daily monitored quality incidents in all production facilities, which can beresolved quickly by taking action by corrective actions in the company.

3rd Class IncidentsCorrective

Although similar to content of incidents of important quality, it differs interms of severity and size of the incident.

Corrective and Preventive Actions include the following topics:

• Food safety, product quality, identication based on raw materials orpackaging

• Quarantines (less than 1 pallet) • Example: Date Coding problems, duct tape problems,• Cleaning Problems

• Recording / control problems • Pest problems etc.

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These incidents shall continue to be processed only in accordance withincident reporting process operating under the general procedure for

incidents in Yıldız Holding; separate reporting shall not be done.

• Advisory notication given by employees aimed at improving

systems, equipment, products and raw materials / packagingprocesses.

• Evaluated under the leadership of plant quality managers, theproposals which the realization of which is deemed to providebenets/improvement notices are projected to be implemented.

a. Examination of IncidentsIncidents shall be reported on a daily basis by the quality assurancedepartment to include the description of the problem together withinformation on cause of the problem, Correction / Corrective Actionimplemented or to be implemented, Result of the Problem, Root cause ofthe problem and Quarantine, if there is a quarantine process. Relevantdepartments should participate in the review and dene measures and

4th Class IncidentsRemedial Notice

All incidents should be reviewed on a daily basis at meetings attendedrepresentatives of quality, production, maintenance departments andthose concerned; ongoing actions for previous incidents should befollowed-up.

b. Incident Resolution

Incidents must be resolved as soon as possible depending on thesituation of non-conformity. The relevant department shall be responsiblefor resolving incidents in the rst instance, but production, quality,maintenance, and sometimes R&D departments shall work together inresolving incidents.

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c. Monitoring and Continuous Improvement

Some incidents may be issues that need to be resolved immediately, assome may require the solution time. The person reporting the incidentshall be responsible for the result of incidents. The solution ofnon-conformity shall be determined and followed by the responsibledepartment. For example, the production team should manage andfollow-up production-related incidents; purchasing team should manageand follow up incidents related to suppliers or raw materials;

maintenance team should manage and follow-up maintenance relatedincidents. The person responsible for the incident shall evaluate therelevancy and adequacy of improvements made and gets support fromrelevant departments, if necessary.

Regarding incidents, quality and production teams shall report on aregular basis following the issues and products/lines of most frequentnon-conformity, investigate the root causes of the problems and provide

measures so as not to allow recurrence of the non-conformity.

Department of quality assurance shall be responsible for periodicreviews; effectiveness of improvements and reporting the results.Measures shall be aimed to prevent the recurrence of incidents.

3. 9. CRISIS MANAGEMENTCrisis is an unexpected situation interrupting business continuity,creating a high degree of uncertainty, which is severe enough to includemedia and/or supervisors. Crisis may contain elements that will threatencustomers, society, company employees, 3rd parties and/or nancialposition, basic operations, reputation of the company, brand, or theenvironment. Potential crises related to products within the scope ofquality;

• Detection of large scale physical, chemical and biological hazardsthat might have occurred/occur in the products.

• Consumer notications

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• Supplier's notications • Deliberate contamination, bio-terrorism

• Shipment / cold chain failures • Fire, natural disasters (oods, earthquakes, storms, etc.). • Communication on press or social media platforms

The crisis management system should be dened within business unitsfor effective management and reporting of potential and possible crisisaffecting food defense, product quality, food safety, compliance with lawsand brand image. This system should include plans for future crises inorder to continue business and operations.

In the event of any crisis, the senior management shall be informedthrough the chain dened in the business unit and evaluation processshall be started. Regarding quality and product-related crises andpotential crises, Head of Innovation and Quality Group shall be informedby the General Manager in the rst stage.

In the event of a crisis or potential crisis, Quality Assurance Managershall;

• Evaluate the crisis quickly by reporting the situation to the GeneralManager.

• Provide all the support for traceability of products, blocking theproducts concerned, work to detect the affected areas.

• Create and follow up the workow and schedule for withdrawal orrecall for a possible decision for withdrawal or recall of products.

• Prepare post-crisis evaluation report for actions to be taken.

The plant's suppliers should also accept to create procedures for crisismanagement consistent with the company crisis managementprocedures.

a. Withdrawal and / or Recalling of Products

Withdrawal

It is the process of withdrawal of the products from a network of logistics

3rd

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It is the process of withdrawal of the products from a network of logistics& distributors to the plant as a result of a quality problem detected andquarantine inspection, in order to stop sales of products to the market.

In case of withdrawal, products are collected from stores, and distributors(wholesalers, retailers, home stores, distributors, etc.).

Decision of withdrawal of products shall be given by General Manager andreported in the class of IMPORTANT incidents. It shall be directed withinthe scope of quarantine -release process.

Recall

It is the process of recall of the products from the whole network of salesto the plant as a result of a quality problem detected and quarantineinspection, in order to stop sales of products to consumers. Wherenecessary, recall from consumers can also be applied and handled withinthis process.

Recall, is the collection of products to prevent the consumption ofproducts as well; it is collection of products in all channels of distribution(wholesalers, retailers, home stores, distributors, grocery stores,convenience stores, vending machines, etc.) including stores, distributorsand shelves. Decision of recall shall be made by Heads of business units or Head of

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• Selling of products to MARKETS is stopped.• The products are collected

• Selling of products to CONSUMERS is stopped.• The products are collected

f

Withdrawal

CRISIS MANAGEMENT

Recall



b. Functions Required for Recall Management Process

The severity of the problem shall determine the functions needed forrecall. A crisis manager shall be appointed by the general manager tomanage this situation and the crisis team shall be formed.

The crisis management team headed by General Manager shall be

composed of persons from the following departments:

• Quality Assurance Manager • Sales Manager • Marketing Manager • Supply Chain Manager • The relevant consultants, experts

from warehouses anddistributors.

• Withdrawal is decided

by General Manager• It is reported as serious

class Incident.

from all sales and distrubition channel to prevent the consumption• Recall is decided by Bussines Unit Group President and Innovation and Quality Group President.• It is reported as Critical Class Incident.

Critical Issues in Crisis Management :

• Risk assessment

• Product traceability (including all distribution channels, in a quick

manner)

• Updated contact list (stores, distributors, laboratories included) • Clear and well-written external communication text

• Fast acting (especially for products with short shelf-life and/orsituations that may put the health of consumers at risk)

Steps in Crisis Management:

Receiving alerts: The rst indication of a quality problem may come

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g q y p yfrom the following sections:

– Plant quality assurance team

– Consumers – Health-related professors – Media

– Trade

– Suppliers' raw materials, packaging materials or nished products – Legal supervisors, etc..

Notication: The crisis manager shall identify the situation in theshortest time, makes the initial assessment and provide information onthe issue.

Information Collection: Detailed information about the product shall be

collected.

Research: Research shall be conducted to determine the validity andscope of the problem. At this stage the controls of a witness sample,production records, analysis records of suspected product and analysisrecords of the raw materials used in the product shall be examined.

– Compliance with product specications – Product compliance with applicable legislation – Whether the product poses a threat to consumer health and safety

Traceability of Products: Traceability of suspected products shall bechecked. At this stage, it is very essential to include the productstransported or loaded to be transported to warehouses. All items must bequarantined.

Decision of Recall: Depending on the result of the risk assessmentmade regarding the problem, the general manager of the plant shallsubmit the recall assessment to the approval of President of businessunit and Global Innovation and Quality Group President.

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Preparation of Draft Text of Internal and External Communication

and Communication Plan : Crisis manager should prepare the text withsupport of Corporate Communications Department and by approval ofGlobal Holding Quality Assurance and Control Group Director, President ofbusiness unit and Global Innovation and Quality Group President.

Giving Information to Legal Supervisors If Legally Required: The

action will be taken with the approval of President of business unit and

Global Innovation and Quality Group President by crisis manager.

Disposal of Products: Contractual disposal of products by third partiesshall be evaluated. Information on quantity, batch numbers and place ofdisposal of the products disposed shall be documented and veried. Ifnecessary, a letter of approval for disposal of the products shall beobtained from the competent supervisors.

Following-up Recall: Routine and quantitative controls shall be carriedout to make sure that suspected products have been removed quickly andefciently from all distribution channels and the amount collected shall befollowed.

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Assessmentby taking the issue

to GM and

the crisis

team

Crisismanagement is

not needed.

If it isnot a crisis

Receivingalerts associated

with product quality

Informingcrisis manager

First evaluationof the crisis



All these stepsshould be followed

by the crisis

manager and

General Manager

not a crisis

If it isa crisis

The problem shall be investigatedRisk assessment shall be carried out

Product traceability shall be ensured and inventory of all locations and those affected shall be identied.

Inventory of products to be quarantined shall be prepared

Recall decision shall be made

• Recall

-Consumption of products shall also be stopped.-Consumers may be at risk

-The products are withdrawn from all distributors,storages and shelves.

-Public is informed to not to consumethese products.

Disposal of products

Preparation of draft text of Internal andExternal Communication and communicationplan giving information to legal authorities

if legally required

3. 10. CONTINUOUS IMPROVEMENTControl and measurement systems used for quality assurance and foodsafety; audits; all kinds of assessment and monitoring methods andfeedback tools used for our quality results. Accurate assessment ofresults and identication of areas for improvement is possible only whensound feedback is available.

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a) Quality Scorecards b) Quality Index c) Audits



• Consumer Complaints• Number of Incoming Complaints• Blocked• Scrap• Re-work• Rejection of incoming raw material

• Rejection of incoming packaging materials• AIB audit score• Number of unsatisfactory

nding in AIB• Product audits• Reference test

archivement ratio• Compliance with spesications

• Closure rate of Class 1 and 2 incidents

• AIB action on-time closurerate for unsat and serious

• Compliance with quality assurance budget

• Number of non- conformance management cases

• Compliance with specications (green%) with a zero defect target• AIB external audit score• Consumer complaint

(cpm)• Product audit

(reference)

• Food Safety Audits• Quality manual

Compliance Audits• Audits of OoS• Product Audits• Certication Audits• Audits of Legal Authorities



• Consumer complaints:

Complaints per million packages (cpm): The ratio of the number ofconsumer complaints received to the number of packages produced.(number of complaints / number of packages produced)*1,000,000

When cpm is calculated;

o Multi-packs (packaging that combines or holds multiple items)= are

added as a single department (1 package) to the number of packages orconsumer complaints.

o PL-Private Label= Private label products are also included in thecalculation.

o Bulk products= Industrial products produced and sold in bulk (barrels,tanks, etc.) are included in the cpm calculation.Hi h i ht d t Al ll d t th t h i i ht

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o High weight products= Also, all products that are heavy in weight areincluded in the calculation (e.g. 10 kg oil for bakeries). Number of packages

is equal to the number of products produced during a month.

At plants, numbers of packages are calculated as follows:

o Single-sold items: Each package offered for sale bearing a bar code willbe considered as constituting a single (1) package.

o Multi-pack products: Regardless of the number of products contained in apackage, the package will be considered as constituting a single(1) package. Private label products will be included in the calculation as itis explained above.

Concerning EDT products, each department packaged in the transportpackage (in secondary packaging material) will be considered asconstituting a single (1) package. Method used to count contents ofparcel depending on type of packaging:

o Products transported in parcels: Contents will be counted based on theminimum number of products in a parcel.

o Products transported in kraft sacks : Each separate kraft will beconsidered as constituting a single (1) package.

oProducts transported in tote parcels: Each separate tote parcel will beconsidered as constituting a single (1) package.

Numbers of packages are obtained monthly from the productions planningdepartment. Under normal circumstances, monthly production gures are used.

• Scrap: The ratio of the number of semi-nished or nished

products that are sold for a purpose other than what it is intendedfor; that have been discarded as rubbish or that have beeneliminated through various methods to the total number ofnished products. It is calculated as a percentage.

• Re-work: The ratio of the number of semi-nished or nishedproducts that have been re-processed at any point of a process to

make its packaging and contents or features to be compatible tothe total number of nished products. It is calculated as apercentage.

• Rejection of incoming raw material: The ratio of the number ofraw materials that are within rejection limits but cannot be

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raw materials that are within rejection limits but cannot beadmitted into a plant to the total number of raw materials

admitted to a plant. It is calculated as a batch percentage.

• Rejection of incoming packaging material: The ratio of thenumber of packaging materials that are within rejection limits butcannot be admitted into a plant to the total number of rawmaterials admitted to a plant. It is calculated as a batchpercentage.

• AIB audit score: The score obtained through an AIB audit.

• Number of unsatisfactory ndings in AIB: The number ofunsatisfactory ndings last AIB audit.

• Product audits: The result of the consumer test given to products

set in the annual product audit schedule at dates specied in theschedule. While Ülker products that score over 45:55 and 43:57conformance test in a benchmark test pass the test, those thatfail to score these ratios fail.

• Reference test achievement ratio: The ratio of the number ofsuccessful tests to the total number of tests.

• Compliance with specications: It is a rate expressed in a

percentage that shows the extent to which a product or processcomplies with consumer specications. The target is zero defect. Itis expressed as monthly green rate (%). Industrial products areincluded in the calculation. The parameters that plants identify asimpacting a product directly and indirectly are weighted at 75percent and 25 percent, respectively.

• Closure rate of Class 1 and Class 2 incidents: It is the closurerate of Class 1 and Class 2 incidents expressed in a percentage.It s calculated by dividing the number of Class 1 and Class 2incidents that are due to be closed or overdue by the total numberof Class 1 and Class 2 incidents that are due to be closed.

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• AIB action on-time closure rate for unsat and serious : It is the

ratio of the number of actions that have been closed on time forunsat and serious to the total number (already taken + to be

taken) of actions.

• Compliance with quality assurance budget: It is the ratio of therealized quality assurance budget to the planned qualityassurance budget. Budgets are monitored monthly on a

year-to-date (YTD) basis.

• Number of non-conformance management cases: It is the numberof times the non-conformance management process is run when anon-conformance arises (e.g. the number of times thenon-conformance management process is run for anoff-specication raw material). Or, the number of cases for which

the approval processes of the non-conformance managementapproval form is implemented.

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3 - 2 0 1 4 Q U A L I T

Y S C O R E C A R D

u s i n e s s

U n i t 2

B u s i n e s s

U n i t 3

B u s i n e s s

U n i t 4

B u s i n e

s s

U n i t

5

v . 1 3

N o v .

2 0 1 4

N o v .

2 0 1 3

N o v .

2 0 1 4

N o v .

2 0 1 3

N o v .

2 0 1 4

N o v .

2 0 1 3

N

o v .

2

0 1 4



2

0 1 3

B u s i n e s s

U n i t 1

B u

N o v .

2 0 1 3

N o v .

2 0 1 4

N o v

2 0 1

Q u a l i t y I n d e x

C o n s u m e r C o m p l a i n t s

S p e c . C o m p l i a n c e

A I B A u d i t

A I B U n s a t & S e r i o u

s A c t i o n

C o m p l e t i o n R a t i o O

n T i m e

R e f e r a n c e T e s t % P a s s

H o l d P r o d u c t

N u m b e r o f I n c o m p l i a n c e

M a n a g e m e n t

Q u a l i t y M a n u a l A u d

i t S c o r e

B U S I N E S S

U N I T S

S c o r e

c p m

N u m b e r o

f c c .

N u m b e r o f f . o b j e c t c c .

G r e e n

%

A v a r a g e S

c o r e

2 n d a u d i t # o f U n s a t

% %

% P a s s / T o t a l T e s t

N u m b e r o f I n c o m p l i a n c e

A v a r a g e S

c o r e

E x a m p l e Q u a l i t y S c o r e c a r d :

b. Quality Index

The quality index is calculated by taking the weighted means of certain keyperformance indicators of production facilities owned by Yıldız Holding andreported monthly. At the year-end, a year-end quality index score iscalculated by calculating the cumulative values of the key performanceindicators.

The key performance indicators (KPI) used in calculation the qualityindex:

• Compliance with specications (green %) with a zero defect

target: They are target limits showing that a product or processcomplies with consumer specications. It is obtained bycalculating the percentage at which business units operate within

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calculating the percentage at which business units operate withinthe green limits very month. This value is obtained from plantquality managers every month.

• AIB external audit score: It is the score obtained in an auditcarried out by American Institute of Baking (AIB). If, at the end ofan AIB audit, the ndings are found to be unsatisfactory, the AIBexternal audit score will be "0." Every business unit is subjectedto an AIB audit twice a year. The results of the last audit are

included in the quality index calculation. AIB external audit reportscore are reported to plant quality assurance managers andquality assurance team at Yıldız Golding headquarters in a reportprepared by AIB.

• Consumer complaint (cpm): It is the rate of consumer complaintsper million packages. It is obtained by multiplying the ratio of the

consumer complaints received per month to the total number ofpackages produced by one million. The cpm (consumer complaintsper million packages) value is reported monthly to the qualityassurance team at Yıldız Golding headquarters by plant qualityassurance managers.

• Product audit (reference): Our products are compared against



c. Audits

A centrally-determined audit and monitoring program is implemented inorder to take measurements and make assessments concerning quality

assurance and food safety practices used in plants. At the end of eachyear, requirement for the next year's audit program is issued. In order toensure the standardization and efcacy of measurement and assessmentpractices, Global Quality Assurance Department of Yıldız Holding speciesthe following criteria, subject to the approval of the Global Innovation andQuality Group President:

• Organization, internal and external parties that performs the audit • Audit frequency • Whether an audit is performed announced or unannounced • Scope

3rd SECTION R .

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4

PRODUCTION



• Grading and assessment criteria

• The system is reviewed and assessed in collaboration with otherbusiness units and necessary improvements are made.

i. Food Safety audits

These audits, which are performed in plants, involve the auditing of hygieneand food safety programs. Every plant undergoes regular food safety audits

to observe and monitor the food safety system in operation. Since foodsafety practices are of critical importance, scores obtained through theseaudits are monitored over the quality index.

Internal food safety audits are performed monthly by a trained food safetyaudit team under the leadership of plant food safety engineer/supervisor.External audits, on the other hand, are performed by independent audit

rms and results are reported to plant management. Frequency of externalaudits is determined by the management. Actions to be taken duringinternal and external audits are monitored and it is ensured that they arecompleted on time.

Audits focus primarily on eld best practices and document controls areperformed during the last stage of the audit. Food safety audits are

• Cleaning practices

• Integrated pest management• Adequacy of prerequisite and food safety programs

Audit ndings are ranked based on the severity of risk they pose as

follows:

• Minor

• Improvement needed • Serious

• Unsatisfactory

At the end of the audit, the food safety performance of the plant is scored

on a 1,000 point scale.

3rd SECTION

PRODUCTION



The plants that will undergo a food safety audit for the rst time receivetraining and create their own audit teams. Afterwards, they begin to

undergo announced and unannounced audits.

ii. Quality Manual compliance audits

Yıldız Holding Quality Manual compliance audit, which are performed to

establish whether the principles set for the Yıldız Holding Quality Manualare conformed with, are done by focusing on the efcacy of the practices

adopted in plants. The steps that are given below must be followed while

realizing the audits;

• Audits are performed by central quality assurance department team

or by a team authorized by central quality assurance department or

by the contract audit rms. • Audit frequency is planned at least once a year and follow-up audit

can be organized if needed.

• Audit question list has been prepared based on Quality Manual. In

case of changes in the common procedures and minimum

principles of the manual, question list should be revised.

• The report of the Audit is published by Central Quality Assurance

to the related Business Unit

• After the audit, action plans created by the business units are

reviewed in the monthly evaluation meetings.

iii. Audits of OoS ( Ofce of Specs)

It is an audit performed to establish conformance with the specicationsissued by OoS. Basic topics such as specications change management;prescription and product tree management; quarantine; release;

admission-qualied admission are audited.

Conformance audits are performed by relevant teams under thecoordination of Yıldız Holding internal audit directorate.

iv. Product audits

3rd SECTION

R .

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4

PRODUCTION



Product audits are performed by the consumer technical researchdepartment in order to understand how our products are received by ourconsumers. It comprises the following tests:

• Comparison of Ülker products available at supermarkets withreference products

• Comparison of a competitors' products with Ülker products

Product audits contain the steps are given below:

Sampling: The consumer technical research team collects the productsto be audited at 10 different points of sale (small and large supermarketsincluded). The products must differ in terms of productions shifts, datesand times.

Consumer surveys: Reference and benchmark tests are prepared byusing different test methods and given to consumers in survey format.Afterwards, the survey results are used to measure the level ofsatisfaction with our products.

Analyses: The products that are audited are sampled and the samplesare analyzed in laboratories The results are assessed in conjunction with

Action Planning: After all assessments are completed, areas of improvement

of our products are determined and these are affected through actionsplanned in collaboration with R&D, quality assurance and productiondepartments.

Production of Reference Product – Approval: Reference products areproduced in a controlled plant environment, which are later used in referenceproduct tests. During this production process, from raw materials and

packaging materials onwards, it is monitored whether all products run withinthe green limits. Only products that are 100 percent green which is called“Reference product” can be used in reference tests.

Depending on the test results, areas of improvement, if any, are identied; thequality assurance and production departments prepare an action plan andmonitor the actions.

3rd SECTION

PRODUCTION



v. Certication audits (ISO, BRC, IFS, Halal, Kosher)

Certication audits are performed by a contracted third party in order tosupport existing quality assurance and food safety systems. Plants identiesan auditing rm from the list of approved audit and certication institutionsdrawn up by Yıldız Holding Global Holding Quality Assurance Department andprepare their audit plans early in the year. The examples of certication

audits are ISO, BRC, IFS, Halal, Kosher, etc.

vi. Audits of legal authorities

• The rst guidance to visitors from government agencies or otherinstitutions are provided by the reception attendant at the plantentrance.

• As the visitor arrives, the gate security informs the mandatemanager and the quality assurance manager. Therefore, updatedcontact information of the mandate manager and the qualityassurance manager must be registered in the reception. In the caseof unavailability of the responsible people, contact information ofthe substitute person should also be registered.

• Receptionist completes the visitor registration process for visitors. • Government agency or other institutional auditors must be

• The use of cameras or recording devices by visitors or auditors

from government agencies or other institutions are permitted onlyby the approval of the general manager.

• Government agency or other institutional auditors provideinformation such as the code, production date, etc. on the productthey want from warehouse or point of sale. Samples are deliveredby personnel assigned by the production manager.

• In the event samples are taken for analysis, at least two replicate

samples must be taken on behalf of the business unit with thepurpose of using one sample for parallel analysis and storing theother for future controls during the shelf life.

• If a punitive or an appeal case arises during the audit, requirednegotiations and the appeals process is initiated within sevendays.

• The audit reports, lled out by the government agency visitors, aredistributed to the general manager and other managers by the

3rd SECTION R .

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4

PRODUCTION



distributed to the general manager and other managers by the

quality assurance manager who also properly preserves them. • Such audit process is reported in an incident report as a 1st Class

Incident.

d. Continuous Feedback

Every employee of Yıldız Holding, from production (raw materials and

packaging materials to eld operations), is responsible for ensuring theproduction of products that satisfy our consumers. Areas of improvement, ifany, are monitored and employees must fulll their duties and responsibilitiesin order to further improve our practices.

Therefore, scorecards and quality indexes, which include the most importantmeasurements on quality, must be shared regularly with all employees.

Meetings, trainings, notice boards and information displays can be used forsharing scorecards.

e. Communication of Results and Actions

i. Daily Zero Defect meeting

In addition, information is provided concerning whether the tasks that were

planned to be completed in previous meetings are completed or not.

Meetings are attended by production and quality assurance foremen, qualityassurance manager/supervisor, production manager/supervisor,maintenance manager/supervisor and, if required, by purchasing supervisorand daily events, products set aside as non-standard and incoming materialcontrol result concerning packaging and raw materials are discussed.

ii. Weekly quality meeting

Issued impacting product quality is assessed weekly by business unit.Concerned employees (quality assurance manager/supervisor, productionmanager/supervisor, supply chain manager (purchasing/planning/logistics)are invited to the meeting. Products that have been blocked, product recalls,consumer complaints that have led to crisis and events are discussed

3rd SECTION

PRODUCTION



consumer complaints that have led to crisis and events are discussed.

iii. Meeting of monthly quality presentation

It is held monthly to monitor and share the key performance indicators thatimpact plants' quality performance. General Manager, quality, production,maintenance managers and related members of these departmentsparticipate in meetings (purchasing/planning/logistics) and monthly quality

score card, quality index and monthly quality report are presented. Necessaryactions are identied.

iv. Consumer complaints meeting

Consumer complaints that are conducted by Consumer CommunicationCenter are presented and examined in periodic consumer complaint reviewmeetings to establish the root causes of these complaints and prevent anyrecurrence. Quality assurance, production and maintenance teams attendthese meetings. The issues that require taking action are identied. Thecorrective- preventive actions (CPA) and the action plans, which are arrangedby Quality assurance department, are monitored. The CPA is closed after theactions that would prevent the recurrence of the problem have been taken.

3rd SECTION R .

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4

PRODUCTION

Daily

Zero Defect

Meeting

Weekly

Quality

Meeting

Meeting of Monthly

Quality

Presantation

• Problems

• Comminication in time

• Quick action

• Following and

sharing the key Performance Indicators

• All kind of problems

about product quality• Blockaged products• Recalled products• Crisises on consumer complaints• Incidents



v. Reports

The following reports are prepared and shared regularly to provideinformation, to review, to communicate and to report:

Daily reports: Events, quarantine-release announcements and consumercomplaints

Consumer

Complaints

Meeting

• Evaluation of Consumers’

Complaints• Root-Cause Analysis• Actions are planned and performed to

prevent the repetitions

Monthly reports: Scorecard, quality index and monthly plant quality report

(The reports must be published until 10th day of every month).

Quarterly reports: Quarterly review reports to be presented during qualityassurance steering committee meetings.

Annual reports: Annual quality report

f. Monitoring of CPA (Corrective and Preventive Action)Process

Corrective and preventive action, concerning the quality managementsystems being implemented in plants, identies the authority,responsibility and practices necessary to investigate the cause ofnon-conformances detected during the admission of raw materials and

3rd SECTION

PRODUCTION



non-conformances detected during the admission of raw materials andpackaging materials; process and nished product stages and after thedelivery of the product to the consumer.

Departments where a non-conformance is detected are issued acorrective and preventive action to investigate and solve the problem. Acorrective and preventive action can be issued by anyone who is involvedin problem detection.

Whether a corrective and preventive action issued to tacklenon-conformances was closed on time or not; whether the problem wasinvestigated correctly and its cause was identied or not and whether thenon-conformance recurred or not is monitored by the person who issuedthe CPA.

CPA system aims at preventing the recurrence of problems by recordingthe non-conformances and solution processes and offering a quick andconvenient source of reference when a similar problem arise in otherdepartments.

A corrective and preventive action can be launched by any of the reasonsgiven below:

• When critical control point/specic control point deviates from

critical thresholds • Non-conformances identied in raw materials and packaging

materials

• Non-conformances identied in nished products • Consumer Complaints

• Non-conformances identied as a result of internal and externalaudits

CPAs must be reviewed regularly with the participation of all departmentsunder the leadership of the quality assurance department and hitchesidentied must be presented to the management. CPA closure rates,return times, timely completion of identied actions, and recurrence rateof non-conformance mentioned in a CPA must be assessed in monthlyquality reports and reported in quarterly and annual reports and be

3rd SECTION R .

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presented.

g. Continuous Improvement

Our target has been dened as Zero Defect in accordance with the qualityassurance principles adopted by Yıldız Holding. In order to move closer tothis target and improve our results daily, we must collaborate. We will

make progress only when each of us feel full responsibility for what we doand fulll these responsibilities fully.

Achieving better results every day depends on:

• Sound measurement • Useful feedback – information

• Sound investigation of problems• Accurate identication of causes

• Identication and effective monitoring of corrective and preventiveactions

Establishing whether same problems recur or not and, if they do, takingnecessary measures.

3. 11. PROJECT MANAGEMENT

In the scope of continuous improvement, improvement projects arefollowed in a standard way in all business units by considerin commonquality vision and principles.

As we targeted permanent solutions in quality projects, we should look fora solution with a different approach than daily problems.

Needs to be done to achieve permanent solution are followedsystematically with below steps.

3rd SECTION

PRODUCTION

CURRENT

SITUATION

EVALUATION

TARGET &

SCOPE

DETERMINATION

ANALYZE DEVELOPMENT CONTROL



1. Step: Current Situation Evaluation

• Identify improvement areas by analyzing measurable goalsaccording to the organization’s needs and requirements (Statisticaldata such as scorecard, quality index, %green reports, consumer

complaints can be used).

EVALUATION DETERMINATION

% GREEN REPORT

0 1 . 0 5 . 2 0 1 3

0 2 . 0 5 . 2 0 1 3

0 3 . 0 5 . 2 0 1 3

0 4 . 0 5 . 2 0 1 3

0 5 . 0 5 . 2 0 1 3

0 6 . 0 5 . 2 0 1 3

0 7 . 0 5 . 2 0 1 3

0 8 . 0 5 . 2 0 1 3

0 9 . 0 5 . 2 0 1 3

1 0 . 0 5 . 2 0 1 3

1 1 . 0 5 . 2 0 1 3

1 2 . 0 5 . 2 0 1 3

1 3 . 0 5 . 2 0 1 3

1 4 . 0 5 . 2 0 1 3

1 5 . 0 5 . 2 0 1 3

1 6 . 0 5 . 2 0 1 3

1 7 . 0 5 . 2 0 1 3

1 8 . 0 5 . 2 0 1 3

1 9 . 0 5 . 2 0 1 3

2 0 . 0 5 . 2 0 1 3

2 1 . 0 5 . 2 0 1 3

2 2 . 0 5 . 2 0 1 3

2 3 . 0 5 . 2 0 1 3

2 4 . 0 5 . 2 0 1 3

2 5 . 0 5 . 2 0 1 3

2 6 . 0 5 . 2 0 1 3

2 7 . 0 5 . 2 0 1 3

2 8 . 0 5 . 2 0 1 3

2 9 . 0 5 . 2 0 1 3

3 0 . 0 5 . 2 0 1 3

3 1 . 0 5 . 2 0 1 3

PROCESS % 25 +

SEMI PRODUCT&FINISHED PRODUCT % 75 G

Specication Compliance

55,97

76,5778,70

64,79

70,40

73,20

71,19

62,17

73,20

70,4972,11 74,89

78,7573,77

69,9268,10

67,36

66,67

65,96

70,65

70,21

60,14

67,27

61,17

74,61

65,00

19,69 22,43

13,9514,41

21,25

16,26

15,07

24,1232,46

20,25

25,58

25,00

13,1019,28

22,25

17,1922,62 16,31

15,7617,19

23,31 20,72

21,1717,78

25,5123,0514,75

14,77

7,30 11,60 9,38 5,076,45 2,02 2,56 4,59

8,13

6,957,84

18,9116,53

10,7116,31

15,76

PROCESS % 25 +

SEMI PRODUCT&FINISHED PRODUCT % 75 Y

PROCESS % 25 +

SEMI PRODUCT&FINISHED PRODUCT % 75 R

R .

0 0 . 1

4

3rd SECTION

R .

0 0 .

1 4

PRODUCTION

L I T Y S C O R E C A R D

B i s c u i t

A n k a r a

C C C

Ç o r l u

A k G ı d a

T o t a l

M a r s a

A d a n a

u l y

0 1 2

J u l y

2 0 1 3

J u l y

2 0 1 2

J u l y

2 0 1 3

J u l y

2 0 1 2

J u l y

2 0 1 3

J u l y

2 0 1 2

J u

l y

2 0

1 3

0 , 2 0

1 6

1 , 3 8

0 , 0 0

0 , 2 1

0 , 7 5

1 , 5 0

0 , 0 0

0 , 0 0

0 , 2 3

1 8

0 , 8 3

0 , 0 0

0 , 3 7

0 , 9 1

2 , 1 8

0 , 0 0

2 , 0 2

0 , 4 3

3

3 , 5 4

0 , 0 3

1 , 5 2

0 , 5 2

1 , 0 4

3 , 7 2

0 , 0 0

0 , 8 7

1 0

1 , 5 2

0 , 0 0

1 , 1 2

0 , 0 0

0 , 0 0

2 , 2 3

1 , 6 8

0 , 5 7

3 0

0 , 7 8

0 , 0 1

0 , 1 4

4 8 , 6 5

0 , 6 8

0 , 6 7

0 , 3 7

0 , 4 5

3 6

0 , 2 4

0 , 0 2

0 , 1 4

2 7 , 3 0

0 , 5 0

0 , 6 6

0 , 9 4

0 , 0 0

0

2 , 9 6

0 , 0 0

0 , 2 8

3 , 6 5

1 , 5 6

0 , 0 0

0 , 7 4

0

, 7 0

7 2 ,

4 7

0

, 0 0

1 , 2 8

0

, 0 0

1

, 3 0

0

, 9 4

0

, 9 4



B U S I N E S S

U N I T S

Q U A

C h o

c o l a t e

T o

p k a p ı

B i s c u i t

G e b z e

J u l y 2 0 1 2

J u l y

2 0 1 3

J u l y

2 0 1 2

J u l y

2 0 1 3

J 2

0

C o n s u m e r

C o m p l a i n t s

H o l d p r o d u c t

S c r a p

R e w o r k

I n c o m i n g

R a w M a t e r i a l

I n c o m i n g

P a c k a g i n g

M a t e r i a l

c p m

( C C p e r m i l l i o n p a c k )

N u m b e r o f

c o n . c o m p l .

% % % C o n d .

a c c e p t a n c e ( % )

R e j e c t ( % )

C o n d .

a c c e p t a n c e ( % )

R e j e c t ( % )

0 , 0 9

1 4

0 , 7 6

0 , 0 4

0 , 6

7

1 , 3

5

2 , 0 2

0 , 1

4

0 , 9 6

0 , 1 8

4 1

0 , 3 1

0 , 0 0

0 , 0 0

0 , 2 1

0 , 8 3

0 , 0 0

0 , 1 1

0 , 0 0

0 , 1 0

4

1 , 0 1

0 , 6 7

0 , 2 4

2 , 2 0

0 , 1 8

0 , 7 0

0 , 4 7

2 2

0 , 8 5

0 , 0 0

0 , 8 0

0 , 2 4

2 , 4 3

0 , 1 7

0 , 0 0

0 1 0 0 0 1 0 0

3rd SECTION

PRODUCTION

Consumer Complaints

N u m b e r o f C o n s u m e r C o m p l a i n t s 2 0 1 3

0 0

50

100

100

200

300

400

500

600

700

800

150

200

250

300

350

JAN FEB MAR APR MAY JUNE YTD YE

122

6341

2915

53

323

184

30 161135 31

61

2013

2012



2. Step: Target & Scope Determination

• Determine the project scope • Determine the goals • Determine the project team

• Create the project schedule • Budget planning

DEFINITION

OBJECTIVE

TARGET

CATEGORY

PROJECT PLAN PROJECT TEAM

3rd SECTION R .

0 0 . 1

4

PRODUCTION

6 .

W E E K

7 .

W E E K

8 .

W E E K

9 . W

E E K

1 0 .

W E E K

1 1 .

W E E K

1 2 .

W E E

K



P R O J E C T

P L A N

R

E S P O N S I B L E

A C T I O N

1 .

W E E K

2 .

W E E K

3 .

W E E K

4 .

W E E K

5 .

W E E K

6

T A R G E T & S C O P E D E T E R M I N A T I O N

A N A L Y Z E

D E V E L O P M E N T

C O N T R O L

3. Step: Analyze

• Determination of the root cause of the basic variables that causethe defects

• Generate the substructure fort the works will be done inimprovement stage.

Methods can be used;

1. Brain storming: Used to determine the possible cause of the problem.All project team determine the sub reasons of the main topics that arefound out during brainstorming.

2. Fishbone diagram: Problem causes are grouped as Material,Machine, People, Environment and Measurement. Environmental andinternal factors should be examined in detail during creating the

3rd SECTION

PRODUCTION



diagram. The possible causes of the problem should be determinedand gathered under the main topics. Everyone’s opinion, related withthe problem, should be taken.

Environment

Measurement Machine Material

People Method

Temperature of enviroment

Measuring unclearlythe contents of products

Rubbing of mixing unitand extruder unit

Weak of packaging material durability

Horizontal gutter directionsof insidepackages

Lacks of adjustment in thepackaging winding drum unit

Employee'scarelessness

Product packaging in soft form

Not controlling of products beforeshipmentLack of training

Product

Deformation

FISHBONEDIAGRAM

3. Cause Analysis: Used to understand the main and the basic reason

of the problem by examining the causes of the problems inbackwards. To nd the cause of the problem, question “why” shouldbe asked at least 5 times.

4. Pareto: Used to prioritized the causes of the problem. The frequencyof each cause or effect size identied and ranked from the largest tosmallest. The causes of problem in the 80 % are focused.

3rd SECTION R .

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4

PRODUCTION

20

18

16

14

12

120%

100%

80%

18

CONSUMER COMPLAINTS

63%

76%

87%

96%100%



4. Step: Development

• Determination of the most effective solution • Determination and the development of the changes that ensure

the targeted improvements discussed in the project(Data collection, brainstorming methods can be used)

5. Step: Control

• Evaluation of the applied improvement plan and the obtained results • State the works to be done for the sustainability and increase of the

1210

8

6

4

2

0

40%

60%

20%

0%

11

6

54

2

ForeignMaterial

Packagingdefect

Melting Missing Weight Expiry Date Other

PARETO CHART SAMPLE

39%

3. 12. TRAINING, CERTIFICATION&

COMMUNICATION

Producing products that will gain our consumers appreciation can only beachieved by the quality and food safety awareness of our employees.Without forgetting that every role in our value chain is essential, it is ofgreat importance to fulll our roles and responsibilities as Ülkeremployees under any circumstances in order to reach the “Zero Defect”goal and to deliver consistent quality in each package.

For all of our employees to recognize their importance in the qualityculture and to possess food safety awareness,

• They must be empowered to achieve and maintain knowledge andcompetencies in line with their duties and responsibilities.Th t b i f d f lit t d th i lt

3rd SECTION

PRODUCTION



• They must be informed of quality assessments and their results. • They must be made aware of their duties and responsibilities in

the quality processes. • They must be included in solving problems that arise in every

process which affects quality

a. Training and Certifcation

Yıldız Holding Quality Manual includes shared and minimum qualityprocedures and their prerequisites that must be implemented startingwith our supply chain and through to Yıldız Holding factories and salesand distribution operationsTherefore, our manual should be used as anessential training tool.

Important topics in training and certication process are as follows:

i. Execution of Training Programs ii. Measuring and Validating the Effectiveness of Training Programs iii. Role of Training Programs in Key Performance Indicators

3rd SECTION R .

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PRODUCTION

REALIZING OF TRAININGS

MEASURING ANDVALIDATION OF TRAININGS’S EFFIENCIES

BASICTRAINING FOR

NEWEMPLOYEES

SPECIFICTRAINING

BASEDON AREAOF WORK

N

I N G A

N D C

E R

T I F I C A T I O N



i. Realizing of trainings

The main purpose for providing training for our employees is to preventsituations that risk product quality and food safety. Therefore, prior tostarting work, each employee must bear in mind the requirement to knowYıldız Holding’s fundamental quality and food safety practices andprocedures specic to their duties and responsibilities. For this purpose,training programs must be implemented under two main topics: basic

TRAININGROLE IN KPI’S

T R A I N

COMMUNICATION

- Basic Training for New Employees:

• Prior to starting work, new employees must complete the job-relatedtraining on fundamentals of food safety and quality.

- Specic Training Based on Area of Work

• In addition to basic training, and based on their business units

and in line with their duties and responsibilities, the newemployees must be trained on below mentioned topics, andreceive their certicates during the rst two months of theiremployment:

o Quality personnel - the Quality Manual, o Warehouse personnel - quality and food safety practices at the

warehouse (including pest control program),o Personnel with roles in cleaning activities cleaning practices

3rd SECTION

PRODUCTION



o Personnel with roles in cleaning activities - cleaning practices,cleaning instructions and chemicals,

o Laboratory personnel - laboratory management, o Maintenance team personnel - maintenance practices for food

safety, o R&D and quality teams - Specications center practices, o Quality and food safety personnel with roles in internal audit -

Internal auditor training. o As for production and quality foremen and production operators,

they must be trained in the following topics based on their workarea:

• General and production line based specications training • Critical control points (CCPs) training based on production line • Foreign material controls training • Training on allergens • Blocked parts training • Sensory testing program

• If operator training is provided to production operators before startingwork, depending on the business unit, and given theabovementioned training topics then training on quality and food

• Production operators must receive on-site, one-to-one and applied

production line training (specications and CCPs) on current orfuture production line assignments. Production operators must beassigned to run a particular production line they have completed theirtraining on and they have been established for sufciency.

• In view of product quality and food safety of the production plan, thespecic training received by operators as listed below must be takeninto consideration when assigning operators to production lines at aplant. Otherwise, such specic training must be provided.

o Whether same product is produced or not on the production linethe operator’s assignment is changed to.

o The existence of production line CCPs implemented with the sameprinciples

o For the line equipment to have identical featureso For the packaging operator to have the identical packaging type /

3rd SECTION R .

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PRODUCTION



o For the packaging operator, to have the identical packaging type /group on the production line

o To have spent at least fty percent of the monthly working hourson the production line the operator has received training on

o To have a backup operator who has received the same specictrainings for situations when the operator may be absent (due tosickness, etc.), and to rst engage the backup operator duringproduction line assignment changes

• The records must be kept on the production operators trainingreceived on current or future production line assignments. They mustbe monitored, evaluated on applying responsibilities after the trainingsand if it is necessary, the trainings must be repeated.

• Training the affected personnel must be prioritized over issuinginstructions and procedures on revisions made to product quality andfood safety documents.

Training Programs and Implementation:

Training content is established by plant quality assurance and trainingdirectorates in accordance with topics and frequency determined by the

Training and record keeping responsibility lies with the persons identiedin the plant instructions or as per their job descriptions; however it is the

responsibility of the immediate supervisor to dismiss an employee whohas not received training.

The training programs that need to be executed are included in therelevant sections of the manual.

Refresher training must be provided at least once a year or as needed

depending on the employee’s performance.

ii. Measuring and validation of the effectiveness of the trainings

After the trainings which are conducted in line such as specs, criticalcontrol points, allergen controls, etc. employees must be monitored in 3months to validate the employees understand the issues Aim is to see

the training is reached to the targets with the employees activities

3rd SECTION

PRODUCTION



the training is reached to the targets with the employees activities.

Every business units must form and record how to score the trainingmonitoring after the validation of trainings according to their own themethods.

The records of the training validation must be periodically interrogated.

Quality assurance foreman must include the specic training validationsin their daily controls either realizing with the production or monitoring theactivities.

iii. Training role in KPI's

If business unit consider consumer complaints, nonconformities,

incidents, internal and external audits, there will be training needs.Training could be an action when the changes in KPI’s of scorecards andquality index are subjected to root-cause analysis.

After non-conformities in practices and operation, if the training is animportant action, supervisors must request the trainings for their teammembers from the training department to refresh the trainings. While

Sustainability on realizing, tracking and validating of trainings have an

important role in continuous improvement process.

b. Communication

Everyone in the value chain has a responsibility in producing the valuableproducts which are keen on by our consumers. Therefore everyone mustfollow their roles and responsibilities to resolve the issues that are

needed to be improved.

The employees must be informed about updated quality work results andplant performance results as well as they are trained according to qualityand food safety standards. The employees must be informed with thegood and bad issues of products to increase the involvement and theownership in resolving process of the problems. Therefore,

• Results of quality scorecards and quality index

3rd SECTION R .

0 0 . 1

4

PRODUCTION



• Results of quality scorecards and quality index • Rate of green product • Consumer complaints • Rates of scrap/ rework and quarantined products. • Product audit results • Results of internal and external audits,etc

subjects included in quality reports must be announced on the qualityboards, must be shared in zero defect meetings and the plans andresponsibilities on sharing the updated informations of qualityperformance results must be dened.

QUALITY

CAMPAIGN




4th

SECTION



PRODUCT

DISTRIBUTIONAND STORAGE

4 SECTION



4th

SECTION

PRODUCT

DISTRIBUTION

AND STORAGE



Each of our products is a promise from Ulker to consumers!

In order to offer the proper quality to our consumers in each bite, we mustmeet the specied standards and preserve our products in each stepfrom the supplier to consumer.

The process of distribution and storage of the products includes the

activities of distributing our products from plants to distributor’swarehouses, business unit’s regional warehouses or to temporarywarehouse which is distributed to sales channels and storing in these

warehouses in accordance with the standards of Yıldız Holding quality andfood safety.

Standards, procedures, auditing and tracking methods and related

responsibilities which apply to all shipment and storage activities that areconducted within Yıldız Holding or outsourced are dened as below.

AND STORAGE



4.1. PRODUCT OUTPUT PROCESSES

a. Receiving Products from Production Department

During the delivery of products that are prepared according to FIFO/ FEFO,with shipment approval to warehouse, bar code numbers on the palletsare read and information ow is enabled regarding the products receivedinto warehouse. While delivering the products, the following information

stated in each product's specications are controlled:

• Stacking height • Pallet arrangement • Product temperature

• Pallet stretch• Parcel / box deformation

Following these controls, products are received by warehousei i i i

4th SECTION R .

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4




supervisors. The products that do not conform with these conditions arerejected and not received.

b. Traceability Records

Receiving the products to the warehouse with their traceability recordsintact is signicant in terms of product tracking in case of a problem.Therefore, the substructure and applications related to traceability must

be applied in each warehouse. In order to maintain accurate and effectivetraceability, lot number and expiration date informations of receivedproducts during receiving, must be recorded.

c. Storing and Preparation for Shipment

Products must be stored in areas which conform to the storageconditions stated in their specications. Every received product must besystematically placed in the warehouse according to its arrival date,amount and properties. Thus, rst incoming products, or products with aclose expiration date can be shipped rst. Besides, mixing of productswith different properties is also prevented



According to the planning department feedback, new products are loaded

in the truck after temperature controls.

The reason for inappropriate temperature results were the late transfer of

the product pallets from packaging area to the refrigerated room. In order

to avoid such situations, production foreman is trained about the issue and

the importance of the product temperature.

Furthermore, Hande has controlled the temperature of the productsretaken to the refrigerated room, products were ready to delivery when

they reached -18 ˚C. She has also informed the production and planning

departments about the issue.

The day after, another truck was parked to loading ramp. Hande controlled

the truck cleaning and temperature, and started the loading process of

products that are in the appropriate temperature to the approved truck.

In this way it was very clear the importance of the controls during

4th SECTION R .

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4




In this way, it was very clear the importance of the controls during

production and before loading.

4.2. PRODUCT SHIPMENT

The process of products shipment, includes the below activities;

- From factories to the temporary warehouse or to business unit’sregional warehouses,

- From temporary warehouse or from business unit’s regionalwarehouses to sales warehouses

- From sales warehouses until delivering to the point of consumption.

a. Specications, Cleaning and Control of Shipment

Vehicles

In order to preserve the products, which have been produced in accordancewith the specications, until they are delivered to our consumers, shipmentvehicles must meet the below specied properties:

• Refrigerated vehicles with heat insulation and frigoric features, as

i i

4th SECTION




required, must be used to ensure shipment temperatures

• Indicators or monitoring devices by which temperature inside thevehicle can be controlled must be present

• Closed and properly insulated vehicles must be used to protectthe products from external factors

• It must be clean and tidy inside the vehicles,there shouldn't beany foreign materials, odor or pest activity.

• Cleaning and disinfection should be done before loading the

shipment vehicles which are used for animal and animal productstransportation and the disinfection document should be kept in

these vehicles. • In the case of the vehicles are used for the transport of non-food

or different foods, vehicles should be cleaned well between

loadings and if necessary disinfected in order to preventcontamination.

• There shouldn't be different materials or a prohibited productgroup in the vehicles other than the products

• Products' contact with the oor must be prevented in the vehicles • The vehicles should be checked visually at each incoming product.

If the shipment conditions are insufcient or there isn't

4th SECTION R .

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4


C O N T R O L F O R M

R E S P O N S I B L E

E X P L A N A T I O N



B E F O R E L O A D I N G

V E H I C L E

P L A T E

C O N V E N I E N T

N O T C O N V E N I E N T

O D O R

S W E P T

C L E A N E D

O T H E R

C O N T R O L S

A F T E R

P R E C A U T I O N S

T E M P E R A T U R E

O F V E H I C L E

m p l e V e h i c l e C o n t

r o l F o r m ( B

e f o r e L o

a d i n g ) :

4th SECTION


E C O N T R O L F O R M

n t r o l l e

d b y :

g n a t u r e :

o n v e n i e n t

o n v e n i e n t

o n v e n i e n t

N o t

C o n v e n i e n t

N o t

C o n v e n i e n t

N o t

C o n v e n i e n t

D o c u m e n t N o :

i s h e d

P r o d u c t s ) :



F I N I S H E D P R O D U C T V E H I C L

C l e a n l i n e

s s o f v e h i c l e

C o m p l i a n

c e o f v e h i c l e c a n v a s

& b

o d y f o

r p r o d u c t i o n

p r o t e c t i o n

T e m p e r a t u r e o f v e h i c l e

P r e p a r e d

b y

R e v i s e N

o :

A r r a n g e d

D a t e :

C o n

S i g

C o

C o

C o

E x a m p l e V e h i c l e C o n t r o l F o r m ( B

e f o r e

U n l o a d i n g F i n i

b. Proper Loading of Products

The products which are not defected during the storage and

non-compliances pointing to a deterioration in product quality must be

loaded to the shipment vehicles. The products with damaged package,broken cold chain and lost consumer appreciation mustn't be loaded on

the vehicles.

Shipment vehicle must be controlled by the loading supervisor or anauthorized employee prior to loading, and control results must berecorded. The vehicles which are deemed conforming as a result ofcontrols must be loaded. Related rules must be followed throughout the

entire sales network.

c.

Warehouse Output Rules for Products to be Shipped

(FIFO/FEFO)

Sh lf lif f d t t b t k d b id i g th ti

4th SECTION R .

0 0 . 1

4




Shelf life of our products must be tracked by considering the time

between delivery of products to warehouses following the plant releaseand delivery to the distributors and points of sale. Therefore, a systemmust be established to prepare the products for shipment which have theclosest expiration date among the available stored products. Monitoring

of the delivery of the products on the shelf life must be considered for thefollowing applications:

For Chain Stores; The shelf life of the products that are at the outlet of

warehouse should not be dispatched whether it is exceeding 1/3 of totalshelf life.

For Traditional consumption channels; Outlet of warehouse

- Shelf life which are below 2 years products, the shelf life of the products

that are at the outlet of warehouse should not be dispatched whether it

is exceeding 1/2 of total shelf life.

- Shelf life which are above 2 years products the shelf life of the products

For Export Products; System should be established to be shipped

maximum within 2 months after the production date.

d. Rules Against the Shipment of Mixed Products

Products which may cause contamination and decomposition to otherproducts mustn't be transported together. In particular, different foods

containing the risk of giving off smell and tools/products such as cleaning

and painting materials mustn't be transported together. Products withdifferent storage conditions according to their specications mustn't beshipped in the same environment.

e. Traceability Records

A system must be established to track the traceability records of our

products until the last location where they are delivered to consumers.Traceability of the products loaded on vehicles must be tracked bywarehouses where products are input and output

4th SECTION




warehouses where products are input and output.

4. 3. PRODUCT STORAGE

a. Importance of Storage to Product Quality

Storage conditions are of great importance in delivery of products, whichare produced in accordance with the specications, to our consumerswithout any decrease in quality. Storage conditions must be designed

and maintained by considering the specications which affect the product

quality directly.

b. Receiving

Properly loaded products in the shipment vehicles must be controlled atdelivery stage to the relevant warehouse, and non-conforming productsmustn't be accepted. Controls to be performed during receiving stage:

• Conformance of vehicle shipment and product temperature• Cleanliness control of the shipment vehicle

4th SECTION R .

0 0 . 1

4




• Cleanliness control of the shipment vehicle • Whether there is any contamination on the external package of

products

• Damage free package control • Product expiration date controls

• Product dispatch note and amount controls

Acceptance and storage temperatures of nished products are dened inthe specications. For up-to-date information at all times, the personnelwho are authorized to access the specications must share the relevantinformation with logistics and sales departments, and perform the

required updates. Responsibility and authority with regard to this subject

should be dened in the job description and also required instructionsshould be formed.

GOODS RECEIVING TEMPERATURE CONTROL TABLE

PRODUCTSPROPER

TEMPERATURERANGE

ALARM ACCEPTANCE TEMPERATURE

Lower Limit Upper Limit

CHOCOLATE- CREAM CHOCOLATE

CHOCOLATE COVERED PRODUCTS(Albeni Kek, Çikolatalım, O’lala,

Halley, Çikolatalı Gofret, Çokanat,Cocostar etc.)

BISCUITS WITH CREAM

CHEESE

MARGARINE

SHORTENING

PASTEURIZED MILK (FERMENTED DAIRY PRODUCTS)

(Yogurt, Ker, Ayran, etc.)

DIARY PRODUCTS

18°C-22 °C

18°C-22 °C

15°C

15°C

25 °C

25 °C

5°C-28 °C

0°C-8 °C

10°C-14 °C

≤ 20 °C

0°C-6 °C

0°C 4°C

0 °C

0 °C

0 °C

35 °C

10 °C

10 °C 15 °C

21 °C

8 °C

6 °C

Sample temperature table must be as below:



DIARY PRODUCTS(Butter, Clotted Cream, Milk Puddings, etc.)

FROZEN FRUIT AND VEGETABLE PRODUCTS

FROZEN FISHERY PRODUCTS

FROZEN MEAT PRODUCTS

FROZEN BAKERY PRODUCTS

ICE-CREAM

CANDY GROUP(Jelly, Hard Candy, Soft Candy)

CHEWING GUM GROUP

0°C-4°C

≤ -18 °C

≤ -18 °C

≤ -18 °C

≤ -18 °C

≤ -18 °C

18ºC-26°C

8ºC-26 °C

0 °C

14°C

4°C

-15 °C

-15 °C

-15 °C

-15 °C

-15 °C

30 °C

30 °C

6 °C

c. Conformance with and Tracking of Storage Conditions

Stated in Specications

Products must be stored under the storage conditions which areconformance with the properties stated in their specications.

Storage temperature and humidity: Temperature and moisture tracking

of warehouses must be performed daily with calibrated devices andrecorded every day. Related controls must be performed by the authorizedwarehouse personnel.

Tracking of product shelf life: Product’s shelf lives must be controlledduring the storage. In order to regular tracking of shelf life, should be pay

attention to below mentioned items in stage of receiving, storage andshipment:

• After the process of product receiving, expiration dates arecontrolled, before products placed on related shelves or pallets.

• The products are stacked according to the expiration dates Nearest

4th SECTION R .

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4




• The products are stacked according to the expiration dates. Nearestexpiration dated products are placed on the top and the farthestexpiration dated ones are on the bottom. When preparing productsfor the shipment, ones at the top are taken.

• When the products are stacked in palletized on the automated

routing system according to expiration dates. During the shipment, a system is established in order to send previously older production

dated products.

• The same application is considered for each shipment during theproduct preparation.

• Products are checked for compliance with the rules of FIFO, with therandom samples taken during the controls of weekly or monthly

internal audits. • During the controls, if the product expiration date has been

approached or the expired shelf life of product is detected, requiredactions should be taken in order not to release this product to

consumer.

Product stack conditions control: Right stacking of products is important



• Filters/y screens must be used in all fans and ventilators. • A y screen must be attached to the doors and windows which must

be kept open for ventilation. • The size and isolation of the storage area must allow appropriatetemperatures throughout the year. Temperatures must be checked and

recorded daily.

• For the tracking of warehouse temperatures; thermometers andrecording devices (GPRS system) must be used which are suitable forremote monitoring system.

• Entrances to the warehouse must be planned to prevent pest entry.

Water accumulation must be prevented in areas of the building thatlead to the exterior. All the water/sewage drains on-site must havemanhole covers. There must be adequate number of manholes atappropriate distances for sewer cleaning.

Storage Conditions

• Foods must be preserved in a manner not to allow damage ordecomposition due to any external factors during storage andshipment.

I hi t hi l d h til ti t t d

4th SECTION

R .

0 0 . 1

4




• In shipment vehicles and warehouses, ventilation, temperature andmoisture must conform with the product specications. Thermometersand moisture meters must be present in the warehouses, and

information must be recorded constantly. Thermometers and moisture

meters must also be present in the vehicles within cold chain. • Storage temperature must be checked daily. Thermometers must be

calibrated by a qualied rm at least once a year.• By considering the product specications, temperature in warehouses

and vehicles mustn't fall below -18°C for the deep-frozen products orallow a deviation of more than +0.5°C from the set temperature. Coldchain mustn't be broken.

• There must be separate areas allocated for damaged products,

materials and packages. • Paints and ammable solvents must be identied and kept in a locked

closet.

• The area where return products are collected and separated must bephysically isolated from the products to be sold. During separating and

storing processes of return and waste products; products mustn't beleft exposed, pending returns must be held for an appropriate period

• Tools, equipment and materials used in warehouses and shipment

vehicles and equipment must be clean, solid and hygienic.

• Warehouse and shipment vehicles and equipment must be suitable forwashing and disinfection.

• There must be generators in cold storages. • Garbage must be kept outside the warehouses, and the materials to be

disposed must be taken away from the warehouses.

• Products must be stored at a specic height on moisture-proof materialthat does not come into contact with the oor.

• During storage, damage of the packages and labels of the materials must

be prevented. Stacking and piling must be performed according to thecharacteristics of raw materials and packaging materials.

• Required occupational safety precautions must be taken related to

shipment and storage of foods.

• Layout in the warehouse must be in accordance with the FIFO/FEFO (FirstIn First Out/First Expiry, First Out) instructions.

• The layout which prevents direct exposure of all foods to the sunlight must

be determined, and required practices must be performed. • Loading ramp must be clean and maintained. • Garbage outside the building must be covered, the covers of drains must

be in place and closed so as to prevent pest entry Floor and surroundings

4th SECTION




be in place and closed so as to prevent pest entry. Floor and surroundingswhere the garbage and waste are stored outside the building must be

accessible and proper for cleaning. Containers must be cleaned and

maintained regularly.

• Water accumulation must be prevented in external areas and parkingareas.

• All plants in the garden and external area must be controlled. Uncontrolledweed or plant growth is prohibited in the 1 m space around the building.

• Foods mustn't be stored at the external area.

Cleaning Practices

• Warehouse cleaning must be performed as often as required (max. onceevery three weeks), and thoroughly.

• A plan must be available regarding the cleaning frequency of all areasincluding inside and outside the warehouses, and cleanings performed

must be recorded.

• Different cleaning and disinfection processes must be performed for

different areas.

• Cleaning materials and chemicals must be stored with their coverson, in a separate section so as to prevent contamination to foods.

Pest Control Practices

• As part of the pest management program, pest control must be

performed periodically or assistance must be received from a pestcontrol company.

• Records must be kept regularly during pest control activities, and

submitted to control and approval of the warehouse supervisor ateach service/control. • Pesticide application must be performed only in obligatory cases

by a licensed person or institution, and recorded.

• Feeding stations containing poisonous feed for rodents mustn't beused inside warehouses and other internal areas.

• Material safety data sheet and labels of all chemicals used in pest

management must be kept in pest control folders. • Maintenance and cleaning of equipment used in pest management

must be performed regularly.

• Conditions that attract rodents to warehouse area and its

4th SECTION R .

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4




• Conditions that attract rodents to warehouse area and its

surroundings, and their nesting probabilities must be determined

and eliminated.

• All feeding stations, live-capture traps, glue traps, pheromone

traps and y trap lights must be shown on the warehouse plan. • In order to observe pest activity, internal space of the warehousemust be painted with a 30 cm wide white paint along the walls.

Pallets must be stored at a 20 cm distance from the walls. • Pest activity control must be performed on pallets which are

unused for a long time. For this purpose, pallets must be moved toallow for controls between the materials.

• Feeding stations must be located with 10-15 meter distancesin-between along the external walls.

• Live-capture traps must be located with 8-13 meters in-betweenalong the internal walls. Live-capture traps must be located onboth sides of all doors.

• All live-capture traps must be controlled regularly, records must bekept and maintenance must be performed. Sticky plates must be



- Which cases require a 100% control?

- Who is responsible to perform controls and make decisions?

f. Return Products

Products which are detected to be non-conforming with our quality standardsfor any reason mustn't be offered for sale. These products are dened andprocessed as return products. Non-conformities which may categorize aproduct as a return product are as below:

1. Expiration of shelf life2. Damage (for example: broken, crushed products, products with damaged

primary package (torn, perforated, etc.), melted products due to failure in

fullling the temperature conditions)3. Leak, efux, stinking in package4. Physical, chemical and microbiological contamination

5. Risk of pest contamination

In addition to the above listed non-conformities, products which are returneddue to closing down or moving a warehouse are also managed through this

4th SECTION R .

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4




due to closing down or moving a warehouse are also managed through thisprocess.

Return products are stored in an allocated area in the central return

warehouse or plants so that they aren't mixed with other products.

Return Product Storage Conditions:

• Products mustn't be held under non-conforming vehicle conditions. • Products must be stored in accordance with their storage conditions

(See Section 4, part 3c).

• Products must be kept in a closed area and protected from dust, rain

and pest risks.

Decisions for return products must be made as quickly as possible. As a

result of review, return products may be offered for sale, reprocessed orundergo the scrap (disposal) process.

Re-work products: These are the products which are deemed suitable for

When deciding that the product can be re-worked, nished product standardsor scrap standards must be used. Prior to letting these products in the plant,it must be ensured that they are free of risks which may contaminate from the

site. Following the assessments, products must be stored in a separate areaby providing the required descriptions (production date, batch no, amount,etc.) on the labels, without deviating from traceability standards.

Products to be subjected to Scrap (Disposal): The products which are

deemed not suitable for offering for sale or reprocessing by the quality

assurance supervisor of the plant are considered as scrap (disposal). Everyplant must have instructions about how, under what conditions and whoseresponsibility these products are to be disposed of (For example: Disposalmanagement instructions, etc.).

4th SECTION




Return Products

1)

Expirationof shelf

life

2)

Damaged

products

3)

Leak, efux,stinking in

package

4)

Physical,chemical and

microbiological

contamination

5)

Risk

of pest

contamination

Central

Return

Warehouse

Plant

R . 0

0 . 1

4

4th SECTION R .

0 0 . 1

4




DECISION

Warehouse

Inspection

Sale

Scrap

Re-work

g. Blockage - Release Process

As part of the quality assurance activities conducted in plants, when arisk is detected or suspicion arises regarding a product in the distribution

and sales network, it is possible to make a decision for review, blockageor withdrawal.

In such cases processed with the approval of general manager in plants,planning, logistics, production and quality departments are notied by theplant quality assurance manager.

In the blockage and release instructions of each work department; itmust be dened who is responsible for notication and conducting ofactual processes after plant.

Example:

• Following the publishing of blockage announcement by the qualityassurance, who investigates and publishes the traceability in andft th h ?

4th SECTION




after the warehouse?

• Who noties the central logistics team?• By whom and how are the central logistics counting results tracked?

• Who conducts the traceability of direct consumer/dealer shipmentfrom the central logistics warehouse or the plant?

• Who are the sales companies notied by in the productioncompany? How are the results tracked?

• Who performs the review of blocked processes, and nal processesrelated to products?etc.

After the decision of blockage;

1. With the blockage decision, traceability information of all products to

be blocked are dened and published.2. The rst process to be performed following the blockage notication

is conducting the traceability of products to be blocked. This process

is performed under the responsibility of logistics department in line

3. For the products released from plant warehouse, process iscontinued with the central logistics warehouses and sales

companies, if required.

4. Blockage process for the products which aren't released from plantwarehouse is conducted in line with the blockage-release principles

specied in the production section of quality manual (See Section 3Part 4h-vi).

Blockage practice in the central warehouses:

1. Central logistics directorate, warehouses and sales companies towhich the products are shipped are notied about the details ofproducts to be blocked.

2. Systemic blockage process is carried out and shipment of products

with the relevant date is suspended.3. Products are physically detected in the warehouses by the warehouse

supervisor, and physical blockage process is applied.

4. Among the products which are decided to be blocked, amounts ofstored and shipped products are determined.

5. Plant quality assurance and related departments are notied aboutthe amounts.

4th SECTION R .

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4




6. The amount of shipped products and which distributors they are

shipped to are determined.

7. If the products are shipped to distributors, blockage process is

started in the distributor/dealer warehouses via the sales company.

Blockage practice in distributor, wholesaler and dealer warehouses:

1. Distributor/wholesaler and dealers are notied by the sales companyregarding the blockage process.

2. Products are physically detected in the warehouses, and physical

blockage process is applied.3. Among the products which are decided to be blocked, amounts of

stored and sold products are determined. Distributors notify the

sales company supervisor about the amounts.4. General coordination is conducted and plant quality assurance and

planning departments are notied by the sales company supervisor.



Blockage and recall in chain store warehouses:

Practices regarding the products transferred to chain stores are within thescope of recall rather than withdrawal, and must be conducted in

accordance with the conditions and approvals as part of crisismanagement (See Section 3 Part 9).

i. Storage of blocked products

Until the review of products is completed and nal decision is made,products must be stored under conforming storage conditions and

mustn't be sold to consumers. For this purpose:

– Related product batches must be put in quarantine physically and

through the system

– Products must be stored separately and labeled; precautions such

as separate shelves, allocated area, tape, etc. must be taken toprevent mixing into shipment

– Blocked products are under review, and their quality problem isn'tnalized until the withdrawal decision is published They must be

4th SECTION R .

0 0 .

1 4




nalized until the withdrawal decision is published. They must bestored under conforming storage conditions by preserving theproperties to offer for sale.

ii. Review and sampling

Samples may be taken from warehouses by the plant quality assurance

manager or Holding Quality Assurance for the purpose of either reviewingthe blocked product or product controls and audits.

If the Plant Quality Assurance Manager is to take samples from any

product in the warehouse, Quality Chief/Director noties the Logisticsdepartment via e-mail.

Traceability records of the products to be sampled are reviewed by qualityand production. Quality department determines the batch and pallet

numbers of products to be sampled.



Scoring table of audits and assessment results are prepared as below:

A second audit is performed in the warehouses with an audit score below

700 in the next 4 months. Deciencies must be eliminated during thisperiod.

For the warehouses with an audit score below 700, commercial activitiesare assessed; processes of penalty and termination of contract must beput into use.

4th SECTION


Score Intervals Result

900 - 1000

800 - 895

700 - 795

<700

Exceeding

Good

Improvement

Required

Unacceptable



Distributor and warehouse audits must be reviewed during the year;improvement areas must be determined and necessary precautions must

be taken. Review activity must be performed at intervals of minimum 3months, maximum 8 months.

c. Identication of Corrective Actions

At the end of each warehouse audit, auditing person or institution reviewsthe results with the warehouse supervisors and shares the improvementrecommendations.

Supervisor of the audited warehouse must communicate the writtenimprovement action plan aimed at non-conformities to the sales companyin a maximum of three days. Sales company must share forwarded actionplan with central quality supervisor and must follow completion of the


4th SECTION

Name of warehouse :

Location :

Name of auditor :

Audit date :

Audit score :

NON-CONFORMITY & ACTION PLAN

SIRA

NO

SUBJECT

TITLESCORE QUESTION

NONCONFORMITY

EXPLANATIONACTION PLAN

COMPLETED

DATE

1

2

3

4

Example Action Plan Form:

d. Improvement

The activities, that are in the improvement action plan aboutnon-conformities in audits, must be completed in due time. Required

precautions are taken and recurrence of non-conformities is prevented.

4. B



Regular controls are performed on the relevant subjects and improvementis conrmed by the warehouse supervisor and personnel.

e. Trainings

All warehouse employees must be trained on the warehouse standards.

A training program is planned for warehouse supervisors once a year.Records of training activities must be kept. This training should containquality and food safety subjects according to the titles of Yıldız HoldingQuality Manual- Section 4.

Warehouse standard training for basic quality and food safety practices

should be given to the new warehouse employees by authorizedpersonnel.

QUALITY




5

th

SECTIONCONSUMER - MARKET



CONSUMER - MARKET



5. 1. PRODUCT QUALITY IN EVERY BITE AT ALL

TIMES: ZERO DEFECT

Up until this section, our Quality Manual has described the entire processof our value chain, from raw material to consumer, which is designed tomake our consumers experience ‘Happy Moments.’ If a negative situationoccurs in any ring of the chain, the entire ring is broken – which may leadto customer dissatisfaction. This is a situation that no Ülker manufacturer

wants.

We have our employees internalized the “Zero Defect” principle, whichhelps us maintain “Our Product Quality in Every Bite” at desired levels atall of our plants. Within the framework of this principle, our happyemployees in our teams produce the products that make our consumerssmile with careful eyes, talented hands, fast actions, excellent recordings

and innovative ideas.

We also strive to maintain accurate and reliable data that forms the basisof proper decisions, which allow us to provide products with the desiredspecication characteristics to our consumers

5. SECTION R .

0 0 . 1

4

CONSUMER - MARKET



specication characteristics to our consumers.

In order to encourage our employees to be involved in every link of the

value chain, training modules should include topics on how to createquality that is conscientious and results-oriented. With this in mind,employees are included in the Quality Journey by being persuaded tointernalize their responsibilities. Therefore, we should include ouremployees everywhere we can:

• Before publishing instructions and procedures, training should be

given to affected employees. • Consumer satisfaction results, product audit reports, internal and

external audit results, the results of quality reports on the rate ofgreen limit products etc. should be displayed prominently on thequality boards and shared during Zero Defect meetings.

For Ülker, “Zero Defect” is not a goal for a day or a particular situation.“Zero Defect” is a culture, that should be considered a road map that is

improved continuously by all our processes. “Zero defect” in qualityculture is considered as an improving roadmap through all the processes.

5. SECTION

CONSUMER - MARKET



5. 2. PRODUCT QUALITY CONTROLS IN THE

MARKET

Our main goal is to maintain and not lose conformance to plant productspecications until they reach the stage of consumer end product. For

this purpose, we have adopted the Zero Defect mission in our factories,warehouses, and delivery channels and make constant improvementsand corrections to our products accordingly.

In order to perform quality controls in the market, 'Product Audit' studiesare carried out in conjunction with the Consumer Technical Studiesdepartment. Within the scope of this study, a list of products by plant iscreated each year (ex. Bestselling product, product with the mostconsumer complaints, etc.) and an annual audit plan is prepared.

The product audit is based on two standards:

• Comparative controls of our products with those of competitors

• Comparative controls of our products on the market with

'Reference Products'.

5th SECTION R .

0 0 . 1

4

CONSUMER - MARKET



Reference products are performed according to specications for all

process and product controls, starting with the raw material andpackaging materials to the nished product and have achieved green

limit results in every parameter.

Issues to be considered in the production of reference products arelisted below:

• Production of reference products and to sending of referencesamples to the Consumer Technical Research Department arerequired while collecting test samples from the market. Qualityassurance departments of business units are responsible for theproduction of reference products according to the annual plan andfor sending these product samples to the Consumer TechnicalResearch Department



5th SECTION R .

0 0 . 1

4

CONSUMER - MARKET

Example Reference Product Approval Form:

TASTE

REFERENCE PRODUCT APPROVAL FORM

Business Unit

Product Name

Variety No

Location

Product lot no

Product Expiration Date

PRODUCT STORING CONDITIONS ( TEMPERATURE (°C) VE HUMIDITY (%) )

ORGANOLEPTIC PROPERTIES

ORGANOLEPTICPARAMETER

RESULTS SPECS VALUES

SMELL

COLOUR

APPEARANCE

ANALYTICAL PROPERTIES

ANALYTICALPARAMETERS




MICROBIOLOGICAL PROPERTIES

MICROBIOLOGICALPARAMETERS


SPECS COMPLIANCE RESULT- PROCESS

(%) =

(%) =

(%) = (%) =

(%) =(%) =

SPECS COMPLIANCE RESULT- FINISHED PRODUCT

NOTES

APPROVAL

R & D DEPARTMENT QAULITY ASSURANCE DEPARTMENT

Consumer tests and market studies are carried out by the managementof the Consumer Technical Research Directorate. In order to perform

these, the Consumer Technical Research Directorate uses their ownteams or work with contracted companies that provide consumerresearch services.

Products, a total of 10 sets, including the same batch number/the sameexpiration date are taken from different markets such as 5 small 5 majormarkets. For consumer test, all 10 sets of products are used. The target

group in the consumer surveys is carried out by choosing 150participants according to consumer proles obtained from marketing and

R&D departments. The potential participants are evaluated withpreliminary assessment questions about consuming the product, beingpatient, if having any known food allergies, their age and education. Theappropriate participants are chosen to be taken tests. Test questionsvary from product to product and test questions are approved by quality

department before the test. A product audit report is obtained byevaluating the test results of all participants.

At the same time, these 10 different sets collected from the market arebenchmarked and scored with the participation of quality, R&D,

i i i i

5th SECTION

CONSUMER - MARKET



production and panelists teams, each plant is also evaluated theirproducts. In additional, analytical data is obtained by analyzing 5 sets of

products on physical, chemical and microbiological parameters in thelaboratory.

Final assessment are done in the meeting to be attended by R&D,marketing, production and quality departments according to consumertest results of product audits and the results of benchmarking, scoringand laboratory analyses in the plants.

The studies listed below are promptly conducted in order to improve thequality of products which have failed in the test results:

- The action plan, in which is included the actions, action deadlinesand action responsibles from production, R&D, quality and related

i i i

- The quality assurance manager of business unit is responsible forfollowing up on the action plans and the degree of completion should

be included in the monthly quality reports. - The effectiveness of actions should be followed during the next

market controls or with the product audits.

5th SECTION R .

0 0 . 1

4

CONSUMER - MARKET



5. 3. CONSUMER COMPLAINTS

The primary objective of the consumer complaint process is to ensureconsumer satisfaction and increase loyalty; contribute positively to thecorporate image, product quality and the productivity of businessprocesses

The following up and coordination of all consumer and customer

complaints is performed by Consumer Communication Center (MIM) in allbusiness units.

The process for dealing with product complaints is initiated by recordingthe complaint on the CRM (Customer Complaint System- MBS) which islocated in MIM. The process is executed according to predeterminedsteps which are inspection of the complaint in the market, forwarding of

the complaint to the business unit, determining the necessary responseand informing the consumer of this response.

Consumer complaints that are forwarded to the business units areexamined in weekly meetings under the leadership of quality assurancedepartment with the participation of required teams (production,

5th SECTION

CONSUMER - MARKET



depa t e t t t e pa t c pat o o equ ed tea s (p oduct o ,maintenance, R&D and purchasing).

If there is a complaint about the industrial products, which are sold withinthe group or outside the group, each plant keeps its own customercomplaints statistics, enter daily incident notications, determines the

actions to be taken and follow the solution of the issue.

a. Recording Consumer Complaints

Consumer complaints may be received in variety of ways. Consumers callthe company exchanges, communicate directly with the plants or ll out

forms on our brand’s web sites. The sales team record the consumercomplaints at the market. Ulker’s employees or their relatives forward thecomplaints or write notications about the complaints to MIM. After any

b. Investigation of Consumer Complaints

MIM market coordination supervisor determines the nominated salessupervisor on MBS software program and directs the sales supervisor byassessing the visit due date, amount and the property of the gift product.MIM market coordination supervisor informs general managers, salesmanagers, related plant complaint supervisors and MIM about thecomplaint via e-mail.

Sales supervisor visits and investigates the sales point and if necessarytakes the product samples from the point. If the sales supervisor has aconcern about any issues at the sales point, the products might beexchanged. In the event of being unable to determine the sales point,after the consumer visit, the sales point is determined by using thetraceability records of the product and the sales point is visited.

The sales supervisor visits the consumer by arranging an appointmentand presents gift products. The sales requests supervisor the productsample from the consumer to analyze the sample, but the supervisordoes not insist and does not offer any commitment or declaration whichcould be interpreted as binding an our companies. Neither does thesupervisor inform the consumer about the details of the problem

5th SECTION R .

0 0 . 1

4

CONSUMER - MARKET



supervisor inform the consumer about the details of the problem.

MIM market supervisor saves the report on the CRM software after thevisit of sales supervisor, notifying MIM by telephone if the event ofdelicate situation.

c. Conducting of Consumer Complaints to BU’s

The sales supervisor should take action to deliver the samples (or

packaging material) taken from the consumer and if possible, thesamples taken from the sales point, following up on the visit not laterthan one working day. This should be accomplished without sacricing the

analyzable properties of the sample and without deforming the sample inthe safest and fastest way (cold distribution chain, via hand or by courier)to plant complaint supervisor.



The nal letter is printed by MIM complaint admission supervisor. After

informing plant complaint supervisor, the letter is signed by MIM Manager

in order to send consumer/customer. It must take maximum 10 workingdays between consumer visit and sending letter. If the sample send toplant by delivery vehicle or if the investigation will be done abroad, it mighttake 20 working days.

e. Tracking on Quality Index as Criteria of Performance

The number of consumer complaints and consumer complaints rate permillion packages are followed monthly on scorecards and quality index.After the actions for the solution of complaints are reected as

improvements in the product, whether a permanent solution has beenachieved or not is monitored by these reports.

Therefore actions and precautions to be taken for the prevention of

recurrence of all consumer complaints, applications will be corrected andthe way of doing business is very important.

Our goal is to meet the expectations of consumer in the best way andsatisfy them by producing our product with “Zero Defect”.

5th SECTION R .

0 0 . 1

4

CONSUMER - MARKET



QUALITY




PRODUCT AND6

th

SECTION



SYSTEM DESIGN



6. 1. PRODUCT /PACKAGING DEVELOPMENT

PROCESS

The development of a new product or making changes to our existingproducts is carried out within the framework of R&D procedures. R&Daims to meet the expectations of our consumer product and packagingspecications at the highest level possible with the contribution ofmarketing, production, supply chain, quality and all related departments.

R&D framework includes the goals presenting new products to the marketas well as increasing consumers’ tastes, cost advantages andsustainability with the purpose of ensuring product and packagingdevelopment activities. Related activities are as follows:

• The development of a new product

• The development of a product similar to other products • Creating different packaging for a current product

• Modifying or developing a product to create cost advantages • Packaging material modication • Changing the weight of an existing product • New line-equipment deployment

6. SECTION R .

0 0 . 1

4




The product and packaging development process is the most critical inorder to achieve the goal of “The same Ülker Quality in every package, inevery bite”. At this stage, the following should be considered in order toensure the sustainability of optimal design:

• What are the characteristics that dene the product? • What are the features that are the most effective in regards to

consumer tastes? • What are the limits of acceptance and rejection in regards toconsumer tastes?

• In order to achieve the target specications, what features shouldthe product contain?

o Raw material/ packaging

o Process o Finished product

• What are the possible defects? • Is there any requirement to provide for maintaining the product

quality? • Can the product sustain the features during shelf life?

Production trials in the product/packaging development process are

conducted to test product design on a production scale. This processperformed under the leadership of R&D is common and carried out withthe participation of production, maintenance, planning, purchasing andquality teams. At the end of the trials, each team reviews and evaluatesbased on their expertise to contribute to the product/packagingdevelopment process.

Before an R&D trial, the trial information form, which is prepared by R&Dresponsible, will be issued with the main topics mentioned belowincluded:

• The amount of trial product and trial time• How to evaluate trial products

Wh t i l k d t ill b d

6. BÖLÜM




• Where trial- rework products will be used

• Risk of allergen contamination and material contamination of usedmaterials • Draft specication parameters related to a predicted range and

controls as claimed

The following should be included in the trials and evaulation:

> Proper planning should be done before the trial, in order to ensure theparticipation of each team/department as well as the properimplementation of quality and food safety procedures.

> During and after the trial, the necessary analysis, control, monitoringand observations must be performed.

> Specied limits should be determined (which properties can bei i i i

6. 2. APPROVAL OF PRODUCT

After the development process, the approval and consensus process isinitiated.

The Consensus process: The consensus process represents theconsensus and alignment of production with the stakeholders involved inthe development of the product. In order to produce a product thatensures specication sustainability, the reviews and opinions of different

company functions are analyzed.

The Approval Process: The approval process is an R&D procedure thatincludes the permission of top management to test the product. A projectis completed after obtaining the necessary approvals. Within the projectapproval process, the specications of the product features as well aswhether these features can be provided on a production scale have to be

tested.

6th SECTION R .

0 0 . 1

4




6. 4. PUBLISHING OF SPECIFICATIONS

IIn an approved product development project, the targeted design shouldbe dened within specications. Obtaining consumer satisfaction witheach package every time, is possible with these guidelines.

The features and limits which are effective in consumer appreciation aredescribed in the nished product specications. Conditions andoperational ranges are dened in the process specications and recipes

in order to obtain these described features. All raw material andpackaging material features for the nished product quality are dened inthe relevant specications.

a. Specication Content

Finished product specication: Finished product specication includes

the parcels, boxes, department package and non-packed product featuresas seen through the eyes of the consumer.

Recipe: Recipe denes the amount of use and component of product interms of raw material and packaging materials.

P i ti Th li d d ti t d d

6th SECTION R .

0 0 . 1

4




Process specications: The line and production parameters are dened

for nished products.

Raw material and packaging specications: Approved raw material andpackaging materials characteristics and limits are dened.

b. Denitions of Green/Yellow /Red

All critical parameters that have an effect on consumer expectations aredened within Green, Yellow and Red limits.

Green Limit: The target limit, meaning that product and process conformsto consumer expectations.

It is not preferable to work within the yellow range; emergency actionsshould be taken to reach the green limit.

Red Limit: This limit means that the product is not meeting consumerexpectations. At this point production must be stopped and correctiveactions have to be taken.

For this limit;

• Raw material and packaging material purchases cannot be made • Processes cannot be initiated• Products cannot be shipped

• Products with red limit parameters cannot be sent to the market

c. Preparing Specications

Specications are prepared by product and packaging R&D teams on theOfce of Specs (OoS) system. Specication preparation consists of 2stages : Preparation stage on OoS and writing stage.

Preparation stage on OoS:

Business units which are within the scope of Master Data Management

6th SECTION




Business units which are within the scope of Master Data Management

(MDM) must be issued a material/product code from MDM department inorder to prepare new raw material, packaging material and nishedproduct specications. After getting an SAP code, preparation ofspecications through the OoS system can be started with identicationof the code on OoS system.

Business units, which are not under Master Data Management, may

prepare specication after directly dening code on OoS System.

• The nished product raw material, packaging materialspecications and recipes are prepared based on SAP code.

• Code will be given by OoS for process specications.

• It is important to make sure that all specications and recipes arecorrect and without spelling errors before entering them into the

system.• Determined Green/ Yellow/ Red limits of the parameters forspecications are clearly dened. Measured expressions must beused instead of unmeasured expressions such as a little, a lot, likea lot of expressions.

• Actions to be taken must be explained with relevant denitions andactions when yellow and red limit are detected.

• Critical areas within the specication’s parameters must be

6th SECTION R .

0 0 . 1

4


N o

W o r k F l o w

D e s c r i p t i o n

C o n t r o l T y p

e

C o n t r o l

P a r a m e t e r

C r i t i c

U n i t

L o w e r R e j e c t i o n L

i m i t

L o w e r A l a r m L i m

i t

U p p e r A l a r m L i m

i t

U p p e r R e j e c t i o n L

i m i t

M e t h o d

R e f e r e n c e

A c t i o n f o r

A l a r m L

i m i t

T a r g e t Action for

RejectionLimit

Explanations

1

D o u g h M i x i n g T i m e

P h y s i c a l

D o u g h M i x i n g T i m e

R e c e i p e S p e c . N

o

Y E S

M i n u t e

10 11 11,5 12 13 H O U R

I f m i x i n

g i s n o t e n o u g h ,

c o n t i n u e s m i x i n g

Consistence of dough is

controlled.Productcolour&textureare controlled.

If it is not

convenientproducts arequaratined



p p

determined. Critical parameters are dened as those which areimportant for the consumers' esteem and which directly affect thenished product or occurs during product shelf life.

• If there is a visual expression via photos in specications, thephotos which are used must correspond to the Green / Yellow /Red limits of the specications. The photos of particular defects inproducts must have enough clarity and intelligibility to be

understood by the employee who will inspect the products.


For Example:

After preparing specications, they are submitted for manager approvalon the system by the person responsible.

GREEN LIMITS

APPROVAL

YELLOW LIMITS

ALARM

RED LIMITS

REJECT

When under the product, max.2 nuts without coating

When under the product, max.5 nuts without coating

When under the product,

over 5 nuts without coating

6th SECTION




Raw materials are common to all business units. During a revision ofcommon raw materials which are used in different plants, simultaneously,submitted to related plants’ manager approval. The approval process isparallel and if all plants approve the revision, specication is sent toOoS-control. If a plant rejects the revision, revision work ow is nished.A new raw material ERP code should be obtained by the plant whichrequested the revision of material.

d. Authorization & Responsibility

Authorization & Responsibility is detailed in the “Authorization ApprovalMatrix of Specication Documents” and “Yıldız Holding QualityAuthorization Approval Matrix”.

Yıldız Holding Quality Authorization Approval Matrix

OFFICE OF SPEC & QA

R&D OPS R E G U

L A T O R Y

SC M A

R K E T I N G

S A L E S

&

D I S T R I B U T I O

NHRQC

SPECIFICATIONS

Product / Formula

Raw Material

Packaging

Process/in - process

ÜLKER QUALITY MANUAL

Quality System Procedures

Food Safety Standards

Lab Standards

Product and Process ControlProcedures

CHANGE MANAGEMENT

Spec/Recipe Changes

Alternative RIM/Packaging Material

New Line Equipment Start Upor Existing Process Change

New Hire or Rotation of Duties

COMPLIANCE

Incident and Non-ComplianceManagement Procedures

Daily Non-Compliance Management

Supplier Approval Procedure

EA&P

EA&P

EA&P

EA&P

EA&P

EA&P

EA&P

P&A

P&A

P&A

P&A

P&A

P&A

P&A

P&A

P&A

P&A

P&A

-

- - -

- - -- - -

-

-

--

- - -

- - -

- -

---

- - - -

- -- -- -

- -

- - --

--

--

-

--

-

-

---

-

-

-

-

A

A

A

√

√ √ √

√√

√ √

√

√ √

√

√

√ √

√

√ √ √ √

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√ √

√

√

√

√

√

JA JA

JA JA

JA

JA

JA JA

A

PA

PA

PA

CHART OF AUTHORITY FOR SUSTAINABLEQUALITY ASSURANCE ORGANIZATION



pp pp

Release Products

VALUE CHAIN

Supplier Approval

Supplier Quality &Performance System

Distribution & WarehouseQuality Standarts

DC Approval Procedures

CONTINUOUS IMPROVEMENT

Setting the Measurement Tools,Scorecard, Audet Calender,KPI & Targets

P&A

P&A

-

- -

-

-

- - -

- - -

-

- - -

- -

--

-

A

√

√

√ √

√ √

√

√ √ √ √ √ √ √ √

JA JA

JA

JA

JA

JA JA

JA

JA JA

JA

PAA PA PA PA PA PA PA

Authority of Specications Documents

There are 3 different authority types in OoS system;

• Authority to authorize • Role identication authority

• Code and parameter adding authority

“Authority to authorize” determines who will responsible for “role

identication authority” and “code and parameter adding authority”. Thisauthority is given to Ofce of Spec. Manager by Holding Global QualityAssurance and Control Group Director.

Role identication and code& parameter adding authority is given toQuality System Specialist by Ofce of Spec. Manager

Only an authorized person can prepare, approve the specications andhas access to specications and recipes.

Preparation, approval and publishing authorization for specication andrecipes are dened on OoS Authorization Matrix.

6th SECTION


OoS AUTHORIZATION MATRIX



Departmant Recipe Finished Product

Specifcation

Process

Specifcation

Raw Material

Specifcation

Packaging

Specifcation

Product R&D Team

Packaging R&D Team

Packaging R&D Team / Director

Packaging R&D Team/Director/Group Director

OoS

PR,A,P, C

PR,A,P, C

PR,A,P, C PR,A,P, C

PR,A,P, C

PR,A,P, C

PR,A,P, C PR,A,P, C

PR,A,P, C,I PR,A,P, C,I PR,A,P, C,I PR,A,P, C,I PR,A,P, C,I

A,AR,P A,AR,P

A,AR,P

A,AR,P A,AR,P

A,AR,P A,AR,P - -

-

-

-

A: Access

PR: Prepare, Revise

AR: Approval (Approve / Reject)

I: Issue

P: Print

C: Cancel

E S S

A U T H O R I Z A T

I O N T

A B L E

A s s t .

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ - - - -

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ - - - - ✔ ✔ ✔ ✔ ✔ ✔

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ - - - - ✔ ✔ ✔ ✔ ✔ ✔

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ - - - ✔ ✔ - - - -

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ - - - ✔ ✔ - - - -

R e c

i p e

R a

w m a t e r i a l

S p

e c i f c a t i o n

P a c k a c i n g

S p e s i f c a t i o n

P r o c e s s


F i n i s h e d

P r o d u c t

S p e c i f c a t i

o n

R .

0 0 . 1

4

6th SECTION


e c i f c a t i o n

t y p e i s d e f n e d o n

O o S A c c e s s A u t h o r i z a t i o n L i s t :



O o S

A C C E

D e p a r t m a n

t

R & D

P l a n n

i n g

Q u a l i t y

A s s u r a n c e

P r o

d u c

t i o n

F i n a n c e

G M

P u r c

h a s

i n g

R & D G r o u p D i r e c t o r

R & D D

i r e c t o r

R & D M a n a g e r

R & D C

h i e f

R & D S

p e c i a l i s t / E n g i n e e r

R & D T

e c h n i c i a n

L e

g a l A f f a i r s S p e c i a l i s t / L e g a l A f f a i r s S p e c i a l i s t A

P l a n n i n g M a n a g e r

P l a n n i n g C h i e f

P l a n n i n g S p e c i a l i s t / E n g i n e e r

Q u a l i t y A s s u r a n c e D i r e c t o r

Q A M a n a g e r

Q A C h i e f

Q A E n g i n e e r

Q A F o r e m e n

P l a n t D i r e c t o r

P r o d u c t i o n M a n a g e r

P r o d u c t i o n C h i e f

P r o d u c t i o n E n g i n e e r

P r o d u c t i o n f o r e m e n

F i

n a n c e D i r e c t o r

F i n a n c e M a n a g e r

F i

n a n c e S p e c i a l i s t

G e n e r a l M a n a g e r

G e n e r a l M a n a g e r A s s i s t a n t

P u r c h a s i n g D i r e c t o r

P u r c h a s i n g M a n a g e r

P u r c h a s i n g C h i e f

P u r c h a s i n g S p e c i a l i s t / C l e r k

P o s

i t i o n

A c c e s s a u t h o r i z a t i o n

b a s e d

o n s p

e

Authorization request for the reason of a new/change position or new roleis submitted with an Authorization Request Form. The form is lled out on

OoS system and submitted to R&D Group Director or for R&D Directorapproval. If approval is given, the request comes to OoS online. After OoSManager approval, authorization will be given.

Authorization request will be opened on the system only by a departmentmanager for the user. All requests which are not opened by a departmentmanager will be rejected.

Authorization requests which are outside of OoS Access Authorization Listscope, must receive approval from any one shown below:

• R&D president • R&D president’s direct reports

• Global Quality Assurance and Control Group Director

6th SECTION




6th SECTION R . 0

0 . 1

4


OoS Authorization Request Form

Name/Surname

Category/Plant

Department

Position

Date:

Please mark the authorization type

Please mark the role

Please mark the specication type

New position Position change Additional role Additional category/ plant

Prepared

by

Approved by

First approval

Second approval

Controlled by(OoS)

Only access



Please explain the request reason

Raw

materialRecipe

Finished

product

specication

Process

SpecicationPackaging

Specication

*HR Conrmation/Date

R&D Director Opinion/Date:

OoS Manager Approval/ Rejection /Date



OoS Checklist:

Finished

Product

Specication

- I-MAP Project code, unless project code is already

written, reasons why project code is not written- First publication and revisions- SAP Revision number, unless Revision number is already written, reasons why SAP Revision number is not written- Conformity controls of additional documents- Obligatory elds

RawMaterial

Specication

- First publication and revisions- Conformity controls of additional documents- Obligatory elds

PackageSpecication

- First publication and reason of revision- Conformity controls of additional documents- Obligatory elds

Process

- I-MAP Project code, unless project code is already written; reasons why project code is not written- First publication and revisions- SAP Revision number, unless Revision number is

6th SECTION R .

0 0 . 1

4




Specication already written; reasons why SAP Revision number is not written- Conformity controls of additional documents- Obligatory elds

Recipe

- First publication and revisions- SAP Revision number, unless Revision number is already written; reasons why SAP Revision number

is not written- Conformity controls of additional documents- Obligatory elds

v. Specication revision process

If it is deemed that a change is necessary, the revision is performed andthen sent to approval by the system. Individuals authorized to access therelevant specication can access the revision request and forward it tothe person responsible for preparing said revision. Then, if necessary, thespecication is revised by the preparer.

f. Publishing

If controls determine that the specication is valid, the specication ispublished by the OoS and distributed to the relevant persons. If thespecication is deemed not appropriate, it is sent back to the preparerwith the reason for rejection. When the specication is published, thespecication number is produced automatically by the system accordingto the specication identication table. The document publication

number is 1 for the rst published document. The maximum duration forthe OoS to check and publish a document is 3 days.

Description Table of Specication No :

6th SECTION


Raw Material Specication No:

Package Specication No:

XXXXX.YY

XXXXX.YY



g. Putting Specications Into Practice

All related specications should be published by OoS and quality plansshould be prepared before the production. Specications should be located at the OoS only. Updated and valid

Finished Product Specication No:Process Specication No:

Recipe No:

XXXXXX: EPR Code

XXXXX.YYAAAAA. YY

RXXXXX.ZZ.YY

YY: Publication No

AA: The number of assigned by the system ZZ: Alternative products tree no

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When the specication is distributed to related persons and departments,a signed distribution list is created. Quality teams are responsible for

ensuring the startup and validation of the specications.

h. Printing Out Specications

Specications with the statuses mentioned below can be printed:

Published: A specication published by OoS

Cancelled: The specication is removed from use, because of beingdelisted etc. Obsolete: All the old versions of the new specication Draft: Unpublished specication

Published or draft specications can be printed and saved as PDF. ThePDFs will contain the text DRAFT as a background image. Only a Quality

management representative can print or save a PDF with the text FINALCOPY in the background. Quality management representatives areresponsible for these copies.

For specications that will be sent to suppliers, all are saved in a specicPDF format.

i A hi i g

6th SECTION




i. Archiving

When a new specication is published, the old specication and draftsare moved to the archive folder.

A document in the archive folder cannot be revised, saved, saved as adraft or sent to approval. A document in archive status can be copied.

The OoS and other authorized individuals can access the archive folder.

6. 5. QUALITY MANAGEMENT

In terms of quality, we aim to produce our products in accordance with the

specications, and offer our consumers the same Ulker value and qualityin every package. For our employees, all of whom play a signicant role inachieving this target, we are providing opportunities to perform great workin line with Ulker principles and values, and to establish systems thatenable their development.

As part of our Sustainable Quality understanding, the common concepts

we have adopted are “product”, “human”, “system” and “value chain”. Inthis respect, we have established Central Quality Systems in order to setcommon quality procedures and standards in our companies, and enableeach work department to be managed by the same principles.

a. Establishment of Standards and Plans for Consumer

Satisfaction

As the rst step of our Quality Road Map, the Ofce of Specs assumesthe role of meeting quality standards, which offer our consumers thesame Ülker quality in every package and maintain their satisfactionthrough the denition and management of our specications andguidelines.

b D iti f P d P d

6th SECTION




b. Denition of Processes and Procedures

Common processes and procedures are dened and are required to beimplemented in all of our plants. Plants are expected to produce productsin line with our product specications, which were created in order toensure consumer satisfaction. Therefore, it is ensured that everythingfrom material supply to material warehouses, incoming quality controlprocesses, production procedures and control instructions, productdelivery, warehousing and distribution processes are managed with thesame standards.

c. Approval , Publishing and Authority / Responsibility

Those responsible for the implementation of published procedures at therelated plants are then informed and requested to manage their systemsaccordingly.

d. Document Management

Our documents are checked regularly to ensure that production meets thespecications and standards and to make sure that everybody is usingthe same information to achieve sustainable high quality.

As document management ensures the accessibility of new versions andthe updates are made, also it should prevent to use the old documents.E-documents should be checked and used in the same standards.

The central and local documents mentioned below should be checked;

• Central and Local documents mentioned below should be checked;

• Quality Manual – Quality and Central Food Safety Procedures • Quality, Food Safety and Process Control Instructions and all other

quality system documents • Analytical Methods and Work Instructions • Process Control Registration Forms • Specications

D t M g t d h t bli h

6th SECTION

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Document Management denes how to prepare, approve, publish,implement, validate, sustain, control and change the documents.

Quality Manual and Common Procedures:

Quality Manual covers the common and minimum quality procedures andthe requirements that should be implemented at Ülker and Yıldız Holding

plants, Sales & Distribution and Supply Chain.

The requirements published in Quality Manual cover the qualityprocedures and standards that should be applied in all business units. Alllocal standards and instructions should be in compliance with QualityManual

Quality Manual denes the general rules and provides the communicationmechanism between related departments.

The Quality Manual should be used as a training tool during theon-boarding process of new employees, in order for them to review andlearn more about the system.

Local Procedures and Instructions:

Local procedures and the instructions are prepared to dene the specicquality requirements of business units, plants and/or technologies.

Local procedures and the instructions should be harmonized with QualityManual and the common procedures.

i. Responsibilities

Quality Manual: Central Procedures

Preparation: Prepared by Ofce of Spec with the involvement of therelated departments.

Approval and Publishing: The documents are approved and published byOfce of Specs after they are approved in parallel with authority-approval

table

6th SECTION




table.

Control and Change: Located on biz.ulker server. Ofce of Specs has theauthority of change any document.

Local Documents

Preparation: Prepared by the related department responsible with theinvolvement of related department (purchasing, production, supply chainetc.) in each business unit in compliance with central documents.

Approval and Publishing: Prepared documents are published by qualityquality managemet representative with the approval of the related

ii. Preparation, approval, publishing

Approved documents are published by Ofce of Specs via e-mail. Centraldocument revision authority belongs to one who prepared the documentand the revision can be requested by everybody. Document name, code,rst issue date and issue number are recorded on main document list toprevent the use of incorrect or obsolete documents.

6th SECTION

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PUBLISHING PROCEDURE UPDATE & CHANGE

• Identifying local document control• Ensuring the content and accuracy

of document• Identifying authorization before

publication• Identifying content of distribution list

(issue/revision date, document name, document no identication, document responsible, location and number of copies)• Publishing of document and reporting of actions in the published document

√ People who will control the document at the plant

√ End users

• Ensuring accuracy of updates and validation• If necessary, publishing of changes/ revisions• Denition of revision and updates at the revision-registration page• Ensuring that all cross references are up to date• Dening of the changes to the proper authorities• Publishing of updates and revisions• Announcing necessary actions in response because of the revision √ People who will control the document at the plant

√ End users



iii. Access, archive, review

The access, archive and review of local documents are made as denedin local instructions.

Access: Central documents can be accessed on Biz.Ulker server.

(http://biz.ulker/SiteDirectory/Northstar/OOS/KaliteYonetimi/Forms/AllItems.aspx)

Document controllers are responsible to distribute the publisheddocument, provide to access the updated version and to collect theobsolete documents at the plants

Archive:

Central documents are archived on Ofce of Spec for 5 years. If required,it is provided to access the old/archived documents.

Review:

Central documents are reviewed and updated at least once in a year byCentral Quality Assurance Team. The review outputs are registered. Thereview process should cover the old document cancellation.

iv. Putting into practice - compatibility

The local documents and instructions are reviewed after publishing thecentral documents. If required, the revisions are made in the local currentdocuments in parallel with the central documents.

Therefore, it is ensured that the central documents are implemented andapplied in plants within maximum 2 months.

The owner of the document in business units, inform those directly orindirectly affected by the implementation of the document in order toensure the compliance with the central system and the documentimplementation. The on-boarding trainings and/or classroom trainingsare arranged to make the process clear and the trainings are recorded

6th SECTION




are arranged to make the process clear and the trainings are recorded.Those who complete the trainings are given certicates if necessary.Through trainings and informing, it is ensured that the local documentsand instructions are implemented in efciently.

e. Compliance

It is checked whether the documents and local instructions areimplemented in accordance with the rules by Ofce of Spec in every plant.These audits are held by Central Quality Team and Yıldız Holding InternalAudit Department. After each audit, the compliance ratio score showinghow the implementations in the plants are in compliance with the central

Then, the improvements in the plant implementations are tracked byfollowing assessment results.

f. Continuous Improvement

Our target in the whole business units of Yıldız Holding is to level up theconsumer satisfaction with using common principles, quality vision andquality procedures passing every day.

Each plant improves itself day by day through our continuousimprovement activities and each strives to reach to the highest qualitytarget at every link of the chain from supply to last sales point inawareness that our each product is a promise of Ülker to our consumer.

6th SECTION R .

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QUALITY




APPENDICES

INSTRUCTION LIST

DEFINITIONS

GLOSSARY



GLOSSARY



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INSTRUCTION LIST

2nd Section 1st Part

Vehicle Control

a. Physical

Conformance

of Vehicle

•If the materials are transported via a tanker

truck nd the truck goes directly to the plant

without stopping by the warehouse, plantinstructions must be prepared that establish

who performs the rst check and how.

Incoming

Material

ControlInstruction

Coming with

Tanker

1


Vehicle Control

c. Transportation

Temperature

Control

• Similarly, individuals who will receive the

materials into the warehouse (warehouse

ofcer, warehouse supervisor, etc.) must also

have instructions and check lists on hand so

that they know how to perform the physicalcheck. These instructions are to be prepared

by Quality Assurance Manager.

•In each plant, arrangements must be made to

communicate the temperature limits of delivered

materials to the warehouse personnel responsible

for controls. These arrangements are to be made

by Quality Assurance Managerassurance.

Instructions that govern practices such as the

updating and communication of tables that include

temperature limits, communication of specications,

denition of temperature limits in the ERP system,

etc. must be prepared.


•Storage conditions suitable for every material are

published in the specications, and it must be

ensured that warehouse personnel are always keptup-to-date on these specications. In every plant,

Warehouse

Acception

CriteriaInstruction

Incoming

Material

TemperatureLimits

Instruction

Storage

Condition

Instruction

2

64

64

65

68

DESRIPTION OF INSTRUCTIONItem

NoSECTION NAME

INSTRUCTION

NAME

Page

No



Vehicle Control

h. Receiving

Conforming

Materials into

Warehouse

this responsibility must be dened in job

descriptions or instructions.

•Those materials that have been entered into the

system are then labeled according to the

instructions prepared for each material. In general,

the label should include information such as name,

short code, system code, amount, batch noassigned by the system, expiration date, etc.

2ndSection 1st

Part

Control of Raw

Materials and

Instruction

Incoming

Material

Labelling

Instruction

3

68

•Different plants use different materials. Therefore,

sampling methods must be dened for raw

materials and packaging materials. Sampling size,

INSTRUCTION LIST

• Sampling methods based on the materials

to be analyzed and analysis methods to be

used

• If a microbiology analysis is going to be

performed, procedures to be followed to

avoid contamination during sampling

• If special situations exist for physical and

chemical analyses (i.e. a sample must not

be taken from the bottom of a sack; a

sample must be taken from materials that

have accumulated on top of the delivery

vehicle), the following methods should be

used

• Procedures to be followed in situations

where a re-analysis is required; sampling

method to be used and sampling size

73Sampling

Instruction

2nd Section 2nd

Part

Control of Raw

Materials and

Packaging

Materials

b. Analysis and

Control Process

2nd Section 2nd Part

Control of RawMaterials and

Packaging

Materials

b. Analysis and

Control Process

(ii3. Control of

products such as

milk/vegetables

wheat)

• Milk; When tanker trucks arrive at the milk

collections centers, milk is transferred to

cooling tanks to be delivered to the plant.

Samples are taken, based on instructions,

from each compartment of the tanker trucks

that arrive at the plant.

Raw Milk

Sampling

Instruction

75

4

5


NoSECTION NAME

INSTRUCTION

NAME

Page

No



2nd Section 2nd Part

Storage

a. Quality

and Food Safety

Standards

• The warehouse layout must be in

accordance with FIFO/FEFO (First In First

Out/First Expiry, First Out) instructions.

This rule must be followed while providing

materials to production.

3rd Section 1st Part

Preparation Prior to

• For this purpose, individuals must be

assigned who are responsible for tracking

i i

Storage

Condition

Instruction896

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INSTRUCTION LIST

Glass/Rigid

PlasticControl

Instruction

Cleaning

Instruction

Maintenance

Instruction

108

115

123

Glass/Rigid Plastic Control

• Glass/rigid plastic instructions to be

followed in factories are communicated clearly to all employees. This

communication may be performed during

annual food safety refresher trainings.

iii. Cleaning Program

• Detailed master cleaning plans and

equipment-based detailed cleaning

instructions must be available at each

plant.• Personnel who are responsible for the cleaning,

inspecting the cleaning and approving the

cleaning should be dened in the cleaning

instructions and job descriptions.

• Although cleanings may vary depending

on the work order of each business unit,

the fundamental requirements to produce

safe products must be dened in the

cleaning instructions.

iv. Maintenance program aimed at quality and

food safety

• Metal-Metal and Metal-Plastic Contact

In order to prevent excessive abrasion

problems, plant maintenance instructions

must be present which enable elimination of

metal-metal and metal-plastic contact in

equipment and prevention of non-conformities.

3rd Section 2nd Part

Provision of Food

Safety in

Production

a. Pre-Requisite

Programs

8


NoSECTION NAME

INSTRUCTION

NAME

Page

No



3rd Section 2nd Part

Provision of Food

Safety in

Production

c. AllergenManagement

Allergen

Management

Instruction

• Instructions must be prepared regarding

allergen management throughout the plant.

• Allergen product replacement cleaning:

Validated cleaning instructions are

prepared and utilized.

129

q p p

D d i i h ld b i

9

10

11

12

Laboratory

Safety

Instruction

141

3

rd

Section 4

th

PartProcess Quality

Control

f. Provision of

Process Quality

• i.Measurement, analyses: Sampling and

measurement methods necessary for

each control are determined by the

related plant instructions.

3rd Section 4th Part

Process Quality

Control

h. Specication

Non-Conformities:

Red

• vi. Control of blocked products: Control

of blocked products is performed under the

resp onsibility of quality department. Separated products are sampled and

controlled in accordance with the size of

batch, as specied in the sampling

instructions of factories.

Process

Control

Instruction

ProcessControl

Instruction

3rd Section 4th Part

Process Quality

Control

(i. SpecicationNon-Conformities:

Despite the work conducted, if continuity of

production within yellow area is requested as

obligatory (The maximum duration is decided based

on the plant and product and stated in the relevantinstructions; the general reference time would be

one shift.) the process of NON-CONFORMITY

Non-Conformace

144

155

160

3rd Section 3rd PartLaboratory

Management

•Risk evaluation should be performed for

laboratory safety; during risk evaluation

safe design, work practices and handling procedures to minimize the potential for

employee exposure to chemicals should

be taken into consideration. Relevant

instruction should be prepared and all

staff should be trained as necessary.

INSTRUCTION LIST


NoSECTION NAME

INSTRUCTION

NAME

Page

No



13

14

Yellow (ii.Failure

to bring results

into the Green

category)

one shift.) the process of NON CONFORMITY

MANAGEMENT must be commenced: Risk

assessment is made; opinions of the department

are taken; an assessment is submitted for the

approval of the general manager and the vice

president.

Management

Instruction

Scoring

Instruction

3rd

Section 5th

PartFinished Product

Quality

b. Production

Scoring

•The fundamental principles to be applied

must also be dened in the plant

instructions in accordance with the

rules listed below.

165



INSTRUCTION LIST

4th Section 3rd Part

Product Storaged. Storage and

Food Safety

Standards

• Storage Conditions: Layout in the

warehouse must be in accordance with the FIFO/FEFO (First In First Out/First

Expiry, First Out) instructions.


Product Storage

e. Management of

Products Damaged

During Storage

• Every plant must have instructions

regarding the conditions for making use of

and reprocessing damaged and return products; sales, logistics and plant

departments must work in tandem in line

with these instructions. Instructions must

include the following information: Under

which conditions can package replacement

be performed? What specication

(analytical properties, sensory, etc.) should

be fullled by the damaged product to be

reprocessed or involved in production? How

is the food safety risk assessment performed? Which cases require a 100%

control? Who is responsible to perform

controls and make decisions?

23

22 ProductStorage

Conditions

Instruction

Evaluation

of Damaged

and Returns

Product

Instruction

Destruction

Process


Product Storage

• Products to be subjected to Scrap

(Disposal): The products which are

deemed not suitable for offering for sale

or reprocessing by the quality assurance supervisor of the plant are considered as

scrap (disposal) Every plant must have24

241

244

245


NoSECTION NAME

INSTRUCTION

NAME

Page

No



Management

Instructions

Blockage-

Release

Process

Instruction

f. Return Products scrap (disposal). Every plant must have

instructions about how, under what

conditions and whose responsibility these

products are to be disposed of (For

example: Disposal management

instructions, etc.).


Product Storage

g. Blockage-

Release Process

• In the blockage and release instructions

of each work department; it must be

dened who is responsible for notication

and conducting of actual processes after

plant.

25

245

247

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DEFINITIONS

DEFINITIONS

AGRONOMIC: Agricultural product.

AIB (American Institute of Bakery ): Food safety standard of American

Institute of Bakery.

AS 400: It is used for institutional source planning. Transferring some

part or process of the rm into computer media.

ATP (Adenozin Trifosfat): Name of cleaning control method that used for

detecting food remainder (because foods include ATP).

BATCH: Size of consignment including some part of production

BRC (British Retail Council): Quality and Food Safety Certication

published by British Retail Council.

CALIBRATION: Regulating a measuring tool for correct results.

CCP: Critical Control Point

CIP (Cleaning in Place): Cleaning method made at closed systems.

CONTRACTED COMPANIES: the rm that serves according to rules by

decided Ulker and made secret deal.



ERP: is business management software—usually a suite of integrated

applications—that a company can use to store and manage data from

every stage of business, including; Product planning, cost and

development, Manufacturing, Marketing and sales, Inventory

management, Shipment and payment. Is an integrated operational

computer program such as SAP, AS 400, Exen400 etc.

FEFO (First Expired First Out): First Expired First Out.

DEFINITIONS

IFS (International Food Safety): Quality and Food Safety Certication

published by German Retail Council.

ISO: International Standard Organization.

ISO 22000: Standard of Food Security Management System published by

International Standard Organization.

MSDS: Material Safety Data Sheet

PRICE CUTTING: Purchasing with reduced price because of a defect in

product.

PRIVATE LABEL: Special production according to customers expectation

and contracts

SAP: It is used for institutional source planning. Transferring some part or

process of the rm into computer media.

SCRAP (Non-Sanitary Fire): Products that sold, made waste or destroyed

in many ways, apart from commercial product.

SPECIFICATIONS: Required technical features for product and service.

UNSATISFACTORY (UNSAT): During an AIB audit, a situation where directfood safety danger is detected because of not performing the good



production practices in a critical degree.

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GLOSSARY

acceptance 43, 51, 74, 77, 78, 82, 85, 137, 148, 149,

177, 212, 237, 238, 273

blockage 154, 155, 156, 170, 208, 248, 249, 250, 251

BRC 5, 26, 41, 205, 305

case study 40, 86, 110, 123, 158, 161, 230, 305

central quality 40, 36, 37, 38, 39, 41, 42, 52, 53, 54,

55, 195, 203, 254, 290, 294

CIP 119, 121, 122

communication 44, 52

consumer complaints 6, 49, 51, 52, 108, 158, 172,

183, 184, 185, 194, 196, 199, 200, 207, 208, 210, 211,

212, 213, 215, 221, 222, 261, 266, 267, 268, 269

access 26, 46, 49, 50, 71, 106, 126, 137, 138, 142,

143, 237, 282, 283, 284, 285, 288, 293, 294

agronomic 24, 33, 76, 305

AIB 5, 6, 26, 41, 194, 197, 198, 199, 200, 201, 305

alarm 111, 112, 146, 148, 149, 150, 160, 166, 170, 179,

238, 279, 280

allergen cleaning 105, 116, 118, 123, 132

allergen management 90, 104, 118, 123, 129, 131

analytical 122, 132, 143, 166, 244, 263, 264, 291

approval 5, 25, 26, 27, 29, 30, 31, 32, 35, 38, 39, 40,

41, 43, 44, 46, 48, 53, 54, 70, 71, 72, 73, 81, 82, 83, 84,

85, 92, 101, 102, 103, 104, 105, 116, 120, 173, 178, 179,

180, 181, 182, 184, 192, 198, 202, 205, 206, 229, 243,

248, 251, 262, 263, 268, 275, 280, 281, 282, 284, 285,

286, 289, 290, 292, 293.

AS 400 69, 75, 102, 305

audit 5, 6, 26, 27, 28, 29, 30, 32, 33, 34, 35, 36, 37, 38,

39, 40, 41, 42, 45, 51, 54, 78, 94, 95, 107, 108, 109, 126,

129 , 133, 135, 136, 137, 184, 194, 197, 199, 200, 202,

203, 204, 205, 206, 210, 219, 221, 222, 227, 239, 251,

253, 254, 255, 259, 261, 264, 265, 294, 306

… pre-requirement audit 26, 27, 29, 30, 32, 36, 38

batch number 46, 49, 66, 69, 75, 83, 86, 95, 175, 176,

177, 192, 252, 264

consumer satisfaction 6, 101, 158, 179, 259, 266,

277, 290, 295

continuous improvement 5, 6, 7, 23, 37, 54, 55, 94,

99, 107, 187, 194, 195, 210 ,211, 222, 281, 295

contractor 113, 125, 137

CPA 49, 50, 51, 52, 53, 207, 209, 210

cpm 194, 196, 199, 200, 201, 212

crisis 184, 188, 189, 190, 191, 192, 193, 207, 208, 251

critical limit 122, 124, 128, 129, 276

cross contamination 95, 104, 118, 131, 132

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… laboratory audit 134, 135

… product audit 5, 6 , 195, 198, 201, 205, 223,

259, 261, 264, 265

… pre requirement audit 26, 27, 29, 30, 32, 36, 38

… audits according to risk group 27, 32, 36, 39

… internal audit 94, 133, 136, 205, 220, 239, 294

… food safety audit 94, 133, 194, 202, 203

… quality manual compliance audits 195, 204

damaged 69, 89,235,241, 244, 245, 247

defect 5, 6, 7, 21, 99, 105, 142, 158, 165, 194, 198, 200,

206, 208, 210, 215, 217, 222, 235, 259, 260, 261, 269,

274, 279, 306

disposal 6, 46, 54, 69, 81, 84, 92, 93, 140, 192, 193,245, 246

distributor 155, 185, 189, 190, 191, 193, 227, 235, 249,

252, 253, 254

document 26, 41, 47, 65, 66, 68, 83, 86, 113, 128, 129,

139 140 148 149 192 202 220 232 234 280 282 286

GLOSSARY

e-mail 43, 44, 55, 74, 84, 92, 251, 267, 293

endorsement 34, 35

Group president 37, 85, 155, 181, 190, 192, 202

HACCP 103, 104, 108, 124, 127, 128, 129, 305

Halal 205

h d 33 127 128 140 188 305

maintenance 30, 89, 90, 107, 108, 110, 111,

116, 118, 121, 122, 123, 124, 125, 127, 151, 154,

155, 161, 162, 180, 187, 202, 207, 219, 240, 242,

243, 274

… maintenance cleaning 116, 118

… maintenance program 107, 110, 123, 125

… temporary maintenance 107, 110, 123, 125

… maintenance team 110, 124, 125, 161, 162,

187, 207, 219

meeting 6, 40, 44, 53, 77, 92, 111, 112, 128, 133,

135, 187, 204, 206, 207, 208, 209, 222, 259, 264,

266, 290

MSDS 121

logistics 84, 92, 127, 154, 155, 185, 189, 207,

230, 237, 244, 248, 249, 250, 251, 252

ERP 66, 106, 142, 143, 145, 147, 159, 173, 240, 280,305

feedback 40, 52, 53, 54, 55, 133, 194, 206, 210, 231,

253

FIFO /FEFO 89, 229, 235, 242

nished product 76, 77, 101, 143, 153, 154, 163,

164, 167, 171, 173, 175, 176, 178, 185, 191, 195, 197,

209, 210, 211, 234, 237, 239, 246, 261, 262, 263, 274,

276, 277, 278, 279, 282, 283, 285, 287, 288

foreign material 33, 34, 47, 107, 108 109, 110, 111,

112, 195, 232

GMO 34

food defense 133, 189

GPRS 241, 305

green 43, 46, 70, 78, 145, 146, 147, 149, 150, 151,

152, 154, 157, 160, 161, 162, 164, 166, 170, 172, 173,

194, 198, 199, 200, 201, 205, 211, 222, 230, 259, 261,

262, 277, 278, 279, 280

Kosher 205

key performance indicator (KPI) 5, 6, 195, 200,

201, 207, 208, 217, 218, 221, 281

label 69, 74, 80, 82, 84, 89, 90, 92, 93, 105, 121,

12, 130, 131, 139, 140, 156, 176, 178, 196, 242,

243, 246, 251, 306

laboratory 48, 72, 75, 76, 78, 79, 80, 81, 86, 134, 135,

136, 137, 138, 139, 140, 141, 144, 145, 149, 150, 151,

159, 164, 220, 264

local 291, 292, 293, 294



IFS 5, 26, 41, 205, 306

ISO 5, 26, 41, 205, 306

hazard 33, 127, 128, 140, 188, 305

MSDS 121

new supplier 25, 31, 40

non-conformance 34, 47, 50, 5,, 70, 73, 83, 85,

90, 91, 128, 151, 155, 156, 160, 179, 180, 181, 182,

184, 185, 198, 209, 210, 240, 252

incident 92, 109, 110, 111, 112, 151, 154, 155, 156,

183, 184, 185, 186, 187, 189, 190, 194, 198, 206, 208,

216, 221, 266, 281

incoming material 32 35 44 46 47 68 71 72

import material 75

incoming control 43, 48, 49, 51, 52, 54, 80

Ofce of specs 5, 6, 7, 31, 43, 44, 71, 176, 205,

278, 290, 291, 292, 293

packaging material 88, 89, 92, 94, 95, 102, 103,

105, 119, 127, 133, 159, 166, 170, 175, 177, 179, 181,

191 194 196 197 205 206 209 210 212 242 261

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GLOSSARY

reference test 199

pallet 63, 64, 69, 74, 82, 88, 90, 105, 115, 154, 155,

156, 164, 184, 185, 215, 230, 231, 239, 243, 251, 252

panelist 165, 264

parameter 46, 52, 70, 71, 78, 79, 80, 81, 83, 85,

101, 102, 103, 119, 122, 137, 142, 143, 1473, 148,

149, 150, 151, 167, 171, 172, 198, 232, 261, 263,

264, 274, 276, 277, 278, 279, 282, 286

performance 5, 7, 24, 25, 28, 30, 31, 36, 37, 42,

45, 47, 50, 51, 52, 53, 54, 55, 72, 73, 74, 78, 133,

140, 141, 151, 163, 195, 200, 201, 203, 207, 208,

217, 221, 222, 253, 269, 281

pest 64, 75, 88, 89, 90, 91, 95, 107, 117, 125, 126,

127, 203, 219, 232, 240, 241, 242, 243, 244, 245, 247

physical control 46, 61, 81, 86

process 5, 6, 7, 24, 25, 26, 29, 30, 31, 32, 33, 34, 38,

40, 41, 43, 44, 45, 46, 47, 48, 51, 52, 53, 54, 55, 56, 61,

65, 70, 72, 73, 74, 78, 79, 80, 82, 83, 84, 85, 87, 90, 92,

94, 99, 101, 102, 103, 104, 108, 114, 121, 124, 127,

128, 129, 138, 142, 143, 144, 145, 146, 147, 148, 149,

150, 176, 178, 179, 180, 181, 183, 184, 185, 186, 188,

189, 190, 197, 198, 200, 205, 206, 209, 211, 215, 217,

222, 227, 229, 231, 232, 239, 241, 242, 244, 245, 246,

248, 249, 252, 254, 259, 260, 261, 262, 263, 266, 268,

273 274 275 277 278 280 281 282 283 285 286

quality plan 45, 46, 61, 70, 71, 72, 73, 74, 76,

78, 79, 81, 92, 101, 102, 103, 142, 143, 144, 145,

146, 149, 150, 164, 172, 178, 288

quality index 5, 7, 195, 200, 201, 202, 203, 207,

208, 210, 212, 222, 223, 269

quality system 4, 24, 33, 72, 73 ,74, 153, 179,

281, 282, 290, 291

quarantine 6, 84, 91, 92, 93, 110, 148, 149, 154,

155, 158, 184, 185, 186, 189, 192, 193, 204, 208,

222, 251

procedure 4, 29, 30, 41, 42, 54, 63, 74, 75, 83, 86,

111, 119, 121, 124, 131, 136, 137, 139, 140, 141, 154,

166, 170, 179, 183, 184, 185, 186, 189, 203, 217, 218,

220, 227, 259, 273, 274, 275, 281, 290, 291, 292, 293,294, 295

recall 184, 185, 189, 190, 192, 193, 207

receipt 48, 140

record 16, 26, 36, 43, 44, 46, 49, 52, 54, 65, 66,

68, 69, 73, 77, 81, 87, 89, 90, 92, 95, 102, 106, 108,

109, 110 ,111, 115, 119, 121, 122, 125, 127, 129,

132, 136, 137, 143, 145, 150 ,151, 152, 156, 157,

160, 161, 164, 166, 170, 174, 178, 179, 182, 183,184, 185, 186, 191, 194, 195, 206, 209, 220, 221,

229, 232, 235, 236, 239, 241, 242, 243, 244, 251,

255, 259, 266, 267, 293, 294

red 43, 70, 84, 92, 145, 146, 147, 148, 149, 150,

151, 153, 154, 156, 157, 158, 159, 161, 164, 170,

171, 172, 179, 182, 277, 278, 279, 280

reference 199



regulation 130

rejection 29, 30, 37, 43, 46, 47, 48, 51, 54, 67,

74, 77, 81, 82, 83, 84, 85, 151, 166, 185, 194, 197,

273, 279, 285, 286, 288

report 6, 26, 28,30, 37, 39, 41, 51, 52, 54, 78, 90,

91, 92, 109, 133, 134, 135, 136, 137, 139, 141, 155,

156, 169, 179, 182, 183, 184, 185, 186, 187, 188,

189, 190, 195, 200, 202, 203, 206, 207, 208, 209

210 211 222 230 250 259 264 265 267 268

release 36, 56, 120, 148, 149, 155,164, 170, 173,

175, 178, 189, 204, 208, 235, 239, 248, 249, 281

273, 274, 275, 277, 278, 280, 281, 282, 283, 285, 286,

287, 288, 290, 291, 292, 294, 305, 306

product control 5, 36, 66, 91, 102, 142, 144, 145,

161, 164, 165, 166, 169, 170, 172, 174, 175, 178, 251,

261

product tree 204, 287

publishing 31, 43, 71, 73, 101, 102, 103, 248, 250,

259, 264, 282, 288, 290, 292, 293, 294

purchase 24, 25, 26, 27, 28, 29, 30, 31, 33, 36,

42, 43, 50, 76, 77, 78, 88, 185, 278

GLOSSARY

reprocess 154, 176, 177, 244

responsibility 7, 44, 48, 69, 71, 155, 173, 180, 209,

210, 221, 222, 237, 246, 248, 252, 250, 290

risk 4, 23, 24, 25, 26, 27, 28, 29, 32, 33, 34, 35, 36,

37, 38, 39, 40, 42, 46, 48, 49, 51, 63, 64, 69, 71, 72,

75, 85, 88, 90, 102, 103, 104, 105, 107, 108, 110,

111, 113, 114, 117, 118, 119, 120, 124, 125, 127,

128, 129, 131, 132, 133, 138, 141, 143, 151, 153

155, 160, 161, 177, 179, 180, 181, 182, 184, 191,

192, 193, 203, 218, 236, 244, 245, 246, 247, 248,

274

... material risk 29, 33, 34, 38, 42, 71, 85

review 71, 73, 74, 92, 93, 102, 103, 104, 108, 109,

117, 127, 128, 135, 136, 154, 155, 156, 160, 172, 181,

183, 186, 187, 195, 202, 204, 207, 208, 209, 210, 245,

248, 251, 252, 254, 274, 275, 286, 292, 293, 294

revision 31, 32, 44, 48, 71, 74, 103, 148, 149, 183,

220, 240, 280, 287, 288, 293, 294

root cause 85, 123, 158, 180, 181, 182, 183, 186,

187, 207, 208, 215, 221, 268

... supplier risk 28, 34, 36, 51

sample 26, 27, 31, 32, 40, 41, 42, 49, 71, 74, 75, 77,

79, 80, 86, 87, 92, 135, 137, 139, 145, 151, 155, 158,

161, 163, 165, 166, 167, 169, 170, 172, 173, 191, 204,

206, 238, 239, 251, 252, 261, 267, 268, 269

SAP 69, 75, 77, 91, 102, 156, 159, 161, 278, 287,

288, 305, 306

sufciency 25, 220

supplier candidate 25, 27, 28, 29, 30,32,38

shipment 63, 65, 78, 83, 86, 94, 128, 169, 179, 188,

227, 229, 232, 235, 236, 237, 239, 241, 248, 249, 250,

251, 252, 305

start-up activities 104

supply chain 55, 76, 190, 207, 217, 291, 292

temperature 46, 47, 64, 65, 66, 68, 88, 95, 119,

121, 139, 148, 149, 151, 161, 162, 162, 178, 229,230, 231, 232, 233, 234, 237, 238, 239, 240, 241,

263

test 26, 27, 29, 31, 32, 38, 39, 41, 45, 47, 55, 76,

92, 104, 105, 116, 119, 121, 123, 124, 134, 135,

136, 137, 138, 139, 140, 141, 144, 152, 172, 185,

191, 194, 197, 199, 200, 201, 204, 205, 219, 261,264, 274, 275

test sample 26, 27, 31, 32, 261

tonnage 34, 35, 86

traceability 105, 106, 137, 143, 145, 176, 177,

178, 188, 191, 192, 193, 229, 236, 246, 248, 250,

251

training 5, 7, 56, 71, 95, 105, 108, 109, 115, 122,

125, 127, 129, 132, 133, 134, 135, 136, 138, 172,

176, 203, 206, 217, 218, 219, 220, 221, 222, 253,

255 259 292 294



waste 6 112 127 142 166 170 177 241 242

scorecard 5, 6, 7, 53, 95, 195, 196, 200, 204, 210,

212, 213, 222, 223, 269, 281

scoring 163, 164, 165, 166, 167, 168, 169, 170, 171,

172, 173, 174, 253, 254, 264

semi product 186, 185, 211

sensory test 172, 219

shelf life 23 84 91 92 163 172 175 177 185

255, 259, 292, 294

value chain 4, 7, 21, 217, 222, 259, 281, 290

warehouse supervisor 46, 61, 64, 66, 78, 82,

83, 84, 87, 90, 91, 92, 93, 94, 105, 229, 240, 243,

249, 252, 254, 255

verication 34, 70, 72, 73

unsatisfactory 39, 77, 185, 194, 197, 200, 203,

306.

scrap 69, 10, 154, 155, 194, 197, 212, 222, 244,

245, 246, 247, 306

R .

0 0 . 1

4

GLOSSARY

witness sample 71, 76, 77, 191

yellow 70, 130, 145, 146, 147, 148, 149, 150, 151,

154, 157, 159, 160, 161, 162, 164, 166, 167 170,

171, 172, 179, 185, 277, 278, 279, 280

zero defect 5, 6, 7, 21, 99, 194, 198, 200, 206, 208,

210, 217, 222, 259, 260, 261, 269

withdrawal 189, 190, 248, 251



QUALITY
