Movsisyan Natural Stone Processing Company Visit Summary 19 September, 2005

Value Added Giving high-quality shape to natural stones mostly for construction. High quality means: certain types of symmetry; high flatness; mass production; also artistic design.

Reasons for Success Using abundant Armenian stone resources, namely basalt, tufa, travertine, felsites. Is not only processing, but minig operation - owning two quarries. Using the most modern Copmuter Numerical Controlled (CNC) machine tools. Entering the world market by special production, NOT granite and marble!

Mines, non-metallic: Stones!MaterialLocationRemarksATufaArtik Large quantities BPumiceAnipemza CSaltAvan DPerlitesAragats E Clay - thermo resistant ToumanianMedium FDolomitesIjevan 15 million tons GMarble Khor Virap, Bjni 1.2 million cubic meters H Bentonite Clays SarigyughMedium IGranitePambak 6 million cubic meters

Why Italian Machines? Italy has ages of experience of using stones for construction, for interior decoration. Produced and exported both stones and machine tools. Has a very developed infrastructure in this area, including many quarries, plants, schools, etc.

Plant Specificity Order based production. Diversity of orders: - cutting clods; - cutting façade tiles; - specific ornamental elements; - columns Very important to note that all these types specify different operational logics.

Cutting ability Cutting wafers – parallelepipeds – clods and tiles. Cutting by cylindrical symmetry. Cutting by rotational symmetry. Drilling holes. Any 3D shape – manually.

Plant Specificity Inventory is everywhere: need to investigate the reasons from the operational point of view! Total WIP is very large. Setup times: - transporting the clods; - setting up machine tools – program should be ready, the cutting tools should be new! - tests, quality control.

Waste It is possible to collect all the waste and possibly use it for: - as other construction elements; - as fill for various paints, putty, etc.; - for chemical production. Waste comes from: - cutting process; - nonconformity of sizes – leftover.

Waste Total waste amount of an order may reach more than 90%! Though usually it is 40% - 60%. As one of you mention, it is important to find out if the waste is stored mixed or sorted. It is clear that it is not very expensive to store the wastes separately.

Waste of Time Waste of Time is the most important waste, since the plant operates close to its maximum cacity: in Summer they work 3 shifts! If you have orders, each percentage of time waste corresponds to the same percent of of lost sales and profit!

Balance Is this production balanced?

Facilities Layout One big U-shaped workshop! However, the diversity of the processes may dictate a different layout. In general the layout issue is connected with the question of the inventories: need to investigate the reasons of large inventories from the operational point of view!

Working Conditions Dust Moisture Noise Lighting Safety

Development directions 50% percent of workers were laid off. Why? Possibly due to the new clod-cutting machine. Armenia is a country of stone. Plus… A lot of construction goes on:

AUA building construction

Development directions Cooperation with construction companies. Research in Industrial Engineering Research in Materials science for: - non-destructive defect monitoring; - new directions of construction science development where stones are used; - … (search will show).

How to start writing a report? Look at the available information: - Company web site; - Your notes; - Photos. Write your main points in the form of bullets – a plan of report. Than add your comments, remarks, suggestions, calculations or any other observations. Only after this go to Internet, brochures, etc. to illustrate and enrich your ideas.