The company that we choose for our operation management project is Shoon Fatt Biscuit Confectionery Stock Sdn. Bhd. Shoon Fatt manufacturer was proven in the entire year of 1967 and started out as an entrepreneur by Mr. Loo Yen Chan with only 5 employees in a size of house at Teluk Intan, Perak, Malaysia. With only one manual development machine, biscuits were distributed locally utilizing a bicycle. In this introduction level, they used a lot of manual labors in order to produce the goods and packaging process.
In the entire year 1976, the company had been shifted to 3 acres land and started invested a small machine to produce biscuits. Due to the Shoon Fatt Company' business is becoming bigger, they could expanded the business enterprise with a 2. 5 million to a semi vehicle machine to create the biscuit in time 2006. Predicated on the history, since 1982, the Shoon Fatt Company were able to expand their selection of products thus justifying their requirements to totally automate their creation lines with the latest in technology to help expand enhance efficiency and production. Using the only 30 employees, Shoon Fatt had expanded the business enterprise throughout the Malaysia. Tardily, the name of Shoon Fatt start becomes popular and their business continues to extend internationally. So, Shoon Fatt Company started export their products to major parts of the entire world since 1992 which is wedding caterers for customer in Brunei, Cambodia, China, Hong Kong, Kuwait, Maldives, Myanmar, Qatar, Taiwan, and Vietnam.
Now, Shoon Fatt Company procedure has divided into 2 shifts that are morning switch and night shift. It offers around 200 employees to manage the process in one switch. Their product also offers obtained HALAL and believed to obtain HACCP in the year of 2009. The mission of Shoon Fatt Company is goes on meet and go beyond in the grade of biscuit because of the products is now expand internationally. Where the vision of the business is become one of the most notable brand in the industry, locally and internationally. To be able to boost the Shoon Fatt's reputation, every home must with at least one type of SF biscuit. It also can help to become the choice of worker. However, Shoon Fatt Company also wouldn't normally forget the acceptance of these product in the world. For example, the safe-keeping and distribution obligations include working with racking system insert and unload palettes, preserving inventories. The gives products and equipment to office by receiving and moving items. Shoon Fatt is growing with an increase of investment being invested into the business. Along with the effort of management in Shoon Fatt factory builds over the years; Now, Shoon Fatt has becomes one of the well-established factories with gained a solid of customer basic.
2a (i)) Development/Operation Processes
2. 1. 0 Move Diagram of the Development Processes:
Preparing & Weighting
Mixing & Dough Making
2. 1. 1Description of the Production Process
Preparing and Weighting
The Shoon Fatt Company places the raw materials such as sweets, wheat flour, cornstarch, milk powder, chocolate natural powder, butter, baking powder and baking soda pop on the ground floor. The employees will lift up the raw materials to second floor when there is an order. The region which is near the entry of second floor is called raw material weighting area and this is the region where the employees prepare and weight the ingredient according to needs. In this field, the component to be prepared is just small amount. After the elements are weighted, the employees put them in the vinyl handbags and arrange them matching to batch.
Mixing and Dough Making
After the fresh materials weighting area, there's a vast area called mixing area and there is six huge machine located at there. On the list of six huge machines, four are horizontal dough mixer and two are vertical dough mixer. The mixers are linked with the silo. The vertical dough mixing machine can mix large amount of dough in comparison to horizontal dough mixing machine. These machines can be managed by either manually or automatically. If managed manually, the quantity of ingredients are placed by the staff and placed the mixing process by man and then your ingredient will stream down from the silo and began to blend. While by automatically, the substances are flow down from the silo automatic and the environment are also automated set by machine. The supervisor or supervisor will do random checking to guarantee the quality of dough.
After the dough is mixed, workers will test the temperatures of the dough and then it will send to dough nourishing area. In this area, the dough will be placing at here for few hours to allow proper fermentation. Some dough doesn't need to ferment, and can directly go for pressing after combined.
Beside dough feeding area, there are few storage containers which are associated with ground floor. After the fermentation of dough, the dough will pour into these storage containers for pressing. The dough will be laminated into sheet form by lamination machine and pass down the measure rollers to attain the standard sheet width required.
The sheet form of dough will pass through the shaping machine after lamination process. After pass through the shaping machine, the condition of biscuits is developed matching to types of biscuits to be produce. In the shaping process, there will have remainder of dough, and the dough will pass back to lamination machine for recycle to avoid waste products.
After the biscuits acquired form the shape, they will send to baking area. The employees will control the range temp and conveyor's rate will depend on the biscuits type to be produce. During the baking process, the staff will monitor the temperature of the oven and taken out the unsatisfied baked biscuits and throw them into dustbin.
The baked biscuits will pass by a machine which will spread oil to them. The oil disperse process will greatly better the looks, aroma and also the flavor of biscuits.
Before the baked biscuits check out creaming or packaging level, the biscuits will go through detectors which are installed on the conveyor to check if the biscuit contain any anonymous substance and stop them check out next stage. If unknown substances are diagnosed, the detector will block the biscuits.
Some biscuits required creaming, they will go through the creaming machine and the biscuits will be creamed based on the types of biscuits to be produced. For those biscuits which do not need creaming, they'll direct forward to packaging level.
When the biscuits are done, they will send to product packaging process. The biscuits are packaged with the supports of car feeders. It means the employees will continuously grab the biscuits and put them in a drain and the biscuits are then twisted and sealed by machine. On the other hand, the biscuits are packaged by by hand also. The workers will pick the biscuits and put them into biscuit tin or box. After product packaging, the staff will group the biscuits in categories and now the biscuits are ready for sale.
2. 1. 2 Talents & Weaknesses of Development Processes
Shoon Fatt's development process is capital rigorous anticipated to high percentage of machinery with regards to workers. This can allow the company reduce the expense of production and gain the benefit of economies of range. Next, the business can also reduce the number of skilled staff by swapping them by machinery. So the company can save the cost of paying high salary to skilled workers.
Higher and Standard Quality
Shoon Fatt can ensure the high quality of the product because they use machines to replace human workers, therefore the problem can be minimize. The high quality of product can lead to building in good brand name of company.
The automatic production series allows the creation process to be controlled continuously. The merchandise will proceed level by stage with no slack time and these critical activities can help the company save time and also save cost indirectly.
Inflexible of Creation Line
The production brand is standardized, it is very difficult to designed the products according to the personal preferences of small band of customers. Besides, after the production collection is started, the merchandise produced are in large amount in order to minimize the creation cost. So, it's very inflexible to improve the production line.
Production process may interrupted credited to one machine breakdown
The mechanization of production line has increase the ability and also productivity of the business. However, if one of the machines is broken down, it will have an impact on the whole creation line, the complete production process can't be completed with the absent of any solitary machines. The maintenance period will influence the businesses of company and company may incur big deficits if the maintenance period is long.
Staffs low incentive
The personnel are doing repeated and routine jobs every day. The routine works can make them feel bored stiff and demotivate them. The less purpose workers will impact the company productivity. Thus, motivation of workers can be an important issue for the business and company has to focus on it.
2(b) (i) Center Structure C:\Documents and Configurations\Administrator\Desktop\untitled. bmp
Diagram: Facility Structure of the Shoon Fatt's Plant in Teluk Intan, Perak
2. 2. 0 Diagram of facility layout and its own descriptions
The Facility design above is the full view of the Shoon Fatt's Biscuit & Confectionery Sdn. Bhd in Teluk Intan, Perak. THE BUSINESS is biscuit company. That they had been produced various kinds of biscuit such as popcorn cracker biscuit, glucose cracker biscuit, special butter and cracker, cocoa Marie biscuit and so on. The factory is a two-storey building is composed first floor and second floor.
Outside the stock, there are office, canteen, surau and toilet which near to the incoming and outgoing area. After enter in the factory, there is a changing room at the key entrance. It really is permit the company's staff and the visitors to change the appropriate form of clothing prepared by the business. There also provided the washbasins to permit the personnel and visitors to wash their hands before enter into the creation area. First, we begin from the company's organic material storage area and sweets & biscuit crumb grinding room. After that, we may use the staircase in the fresh material storage to enter in to the first floor. Inside the first floor, we can see that there surely is a raw materials weighing room. The workers will lift up the require raw material of production from store room 3 which track down in floor floor since there is absolutely no wall between earth floor and first floor so it allow the movement of activity of raw materials. When they get the raw materials they can commence to weigh the component from then on send to the mixing area. Within the mixing area, the business has 6 huge machines to mixes the fresh materials, the 6 huge machines consists of 4 types of horizontal dough mixer, and 2 types of vertical dough mixer which connect with two pipes. This inflatable water and oils stream from the pipes into the mixers. The fermentation room is located near the mixing up area and cleaning room is provided in the mixing area.
After the mixing process, it will be send to the dough feeding area to stores the completed dough to wait for further process. Some will be mailing to the fermentation room while other which does not need fermentation will straight shift to the dough building area in the bottom floor. With this dough building area, it is to execute the procedure for pressing and shaping goal. Next the finished shaping wet dough portions will transfer sequence to the oven area. The range area is the cooking biscuit area with a hot condition. The maintenance workshop and toilet can be found near the range area to convenient the worker during the creation process.
Beside the oven area, there is certainly wafer development area which carries out the operations like spraying petrol and cooling down process. Then, the finish biscuit will be copy by machine to two different places. Both places will be the packing area creation line 1 on the ground floor which is made for packaging of plain biscuits and packaging area production line 2 in the first floor for sandwich biscuits which require extra creaming process before the packaging occurs at the assorted biscuit packing area. Both of the biscuit packing area has have their own store room.
Lastly, beyond your factory there is a packaging material storage area and completed goods storage area located. The finished biscuit which finish packaging from the first floor will be raised right down to store for the reason that area. The store and buyers can buy the merchandise that they need in the delivery area. The business wills straightforward using the forklift to alter the product to the buyer's vehicles vehicle in the delivery area.
2. 2. 1 Analyze and treat the advantages and the weaknesses.
Strengths of the service:
Fully applied the destination to run the operation
Shoon Fatt company has designed their layout effectively by arrange according to the direct movement of production. Utilizing the L-shaped biscuit herb layout, they can totally used the available width and cut down on the space which lead to less space required between machine and the task in process inventory. It provide a good and safe practices working environment condition to the employees.
Flexibility of warehouse
Shoon Fatt Company stores their done goods in the warehouse. In order to convenient the incoming and outgoing travelling to pick the done goods easily they decide to place the merchandise which is high purchased near the entry of the facility. In this manner, order picking is made more efficient. The lorry and vehicle can self-explanatory get the product from the delivery area.
Efficent planning to the place of the store room
They rely that their development is required the support of uncooked material. In order that, they have got build the store room at the convenient place. It is not far from the area of operations and it let employees the easily to pick raw materials within short time. Besides that, the store room also near uncooked material weighing room and the packaging area to ease the work of workers while saving movements time and costs.
Poor protection of the factory
The company has hired 400 employees. Our group noticed that there is no any firefighting equipment and first-aid equipment provided at any part of the business. This might cause the employees work under a higher risk condition. If there is an emergency case occurs in the manufacturer the complete company employees may be having difficulties to flee themselves from danger. Additionally the, the done goods are stored in the warehouse. It'll be a tragedy if an accident such as a open fire is occurs. They must contain first-aid requisites and should be in the charge of skilled person. Aside from first-aid boxes, it is also desirable to have a stretcher to move injured persons to a centre where health care can be provided.
Unsuitability of the building design
Two storey building is not a ideal for a biscuit company. It may lead to high development costs that have to carry by the company. As compare to the other rival who's having single-storey, they can be less effectively and efficiently as they required using more employees to support the operation activities. Another reason is the complex and difficult to keep lifting up and down of the merchandise. It really is a waste products of the vitality. Materials handling becomes very complicated. Lots of time is wasted in moving them between surfaces.
3. 0 Books Review & Contributions
3. 1 Books Review
Quality Management is vital for a business in their business. It may impact a company earnings, reputation and competitive position in the establishments. Many company use quality management as a strategic weapon for increasing their competitive progress. According to Anh, Abdallah, and Yoshiki (2011), quality management has positive romance with an organization's competitive performance. Furthermore, researcher also reveal quality management system which characterized by top management management for quality, close customer relationship; sharp give attention to process management, employees' training and involvement, and Information opinions have contribute to Japanese making in attaining competitive move forward at global markets. However, organizations that are inadequate at creating organizational knowledge through quality management routines will create less improvement, which brings about lower degrees of increased performance (Kevin, Roger, Srilata, & Charles, 2004) In overall, it is critical for manufacturing market sectors, especially food and drinks industries to give attention to quality management as much researchers have proven the contribution than it for a firm.
Besides that, the quality management effectiveness differs between the East Asian and the western ethnicities (Thomas, 2010). You will find 2 GLOBE culture beliefs which is the assertiveness and the doubt avoidance will affect the quality management effectiveness. The 2 2 factor will vary between all countries on earth. Furthermore, Hale (2005) suggests that the high performance and high technology company do not trade off their quality management for advancement. This is because the foundation for high response of the high technology company is provided by their quality.
It is important for every business to involve some loyal customers. To be able to create loyal customers, organizations usually use quality management tools such as total quality management (TQM) to design and create something that your customer actually would like and desires. Implement TQM programs in an organization can directly and positively effects customer satisfaction, and most importantly, this relationship is invariant across types of industries and civilizations ( Mehra, & Ranganathan, 2008). Corresponding to Terziovski (2006), processing firms should place more focus on "soft" quality management practices for example unity of goal and remove barrier between employees and section can have a significant in output improvement as well as client satisfaction. On the other hand, food and beverages manufacturing industries development is largely depend on customers demand. In other term, quality management which produces customer satisfaction will be the primary factors to determine company survivability in different industries.
According to Rui Sousa (2001), quality management can be influence by manufacturing strategy framework on customer concentration. Customer focus is similar to the starting point of any quality effort. Customer needs and satisfaction and internal processes are framework of quality management. The making strategy framework are cost control, wide-ranging differentiator and niche market differentiator. Different strategy will have an impact on the customer's emphasis and it'll directly influence the product quality management. Customer focus so on customer romance, customer involvement in new product design/ benefits, collection of information on customer needs are all linked with creation strategy. Critical framework characteristics, which appear to strongly have an impact on customer, focus methods.
According to Dong-Young Kim, Vinod Kumar, Uma Kumar ( 2010 ). Researches are figure out the relationship between the quality management methods and development. The researches prefer to research the relationsihip among quality management(QM) tactics and explore which QM procedures are directly or indirectly associated with five types of creativity. It had been radical product, radical process, incremental product, incremental process and administrative. Therefore, the study of analysis effect signifies that 17 out of 19 hypotheses are recognized. It's obviously show that QM routines through process management are directly or indirectly associated with development. The innovations so on increase management leadership, provide training, quality data and reporting, process management.
According to M. Vehicle Der Spiegel, P. A. Luning, W. J. De Boer, G. W. Ziggers and W. M. F. Jongen (2004). Food quality management has more important in the agri food sector anticipated to various food occurrences. The food-borne diseases and an increased quality awareness of consumer are receiving increasingly more concern about the meals quality management. Inappropriate management of food creation procedure can cause problem with the aspects so on food safety, client satisfaction and product availability. Therefore, during produce the food, the manufacturer should have well arrange for quality management such like the meals quality, food store duration, food nourishment and product packaging of the food. All of the activities are related to quality management.
3. 2 Books Review - Advantages
According to the books review, there are some advantages we can get when we implement the quality management. First of all is the manager can learn more and understand more about the product quality management practice. In the event the manager is aware of about the product quality management practice, they may serve the business to evaluate the company quality standard and will increase the areas that are essential to improved upon. Besides, the review also allow company understand how and when they should use their quality management strategy in several region.
The advantage of the product quality management for firm in the long run is show that, when the company are well understand about their customer and know which way to produce the good typically have the ability to filled with others competitor. This is because of the firm know what they should do and the way to do to create good that will satisfaction the customer. Besides that, development is the development in nowadays. Every firm are using development to conduct business to obtain the opportunities to filled with their competitor. If the company first to found the technology, he will continually be the leader and more firm will only be the enthusiasts. Technology should be conform by each organization and each organization should try and come out with more innovative idea in order to benefic themselves also consumers. Furthermore, food quality management is most significant for food creation. Because consumer evaluates your brand image, only continue with the tastes of the merchandise. If the company food quality is bad, the brand image will be negative. When the organization brand image is negative, consumer will tend to choose other brand.
3. 3 Literature Review - Disadvantages
According to the review, the quality management also has their cons of restriction. The disadvantages is the firm quality performance derive from the notion only rather than on the real result and the amount of firm in our study is somewhat lower than in a few works cited (Francisco, 2004). Which means that a great deal of companies use the understanding only and they do not know their actual result of the effectiveness of the product quality management.
The disadvantage of the client concentrate, decision of developing strategy decision and development will be the program with spending a large cost. The effect will be mysterious after the firm made the changes. After the changes maybe the sales or firm brand image increase but its have the options that the firm make the changes in the long run the result will be no changes. Besides that, making changes in the company, the worker or the client will adapt about it or not is still an anonymous. Therefore, the management should decide carefully and think of all the choices that will arise.
3. 4 Shoon Fatt Biscuit & Confectionery Factor Sdn Bhd
Shoon Fatt Biscuit & Confectionery Factor Sdn Bhd has focus on quality management given that they shifted their manufacturer to the current location and implemented various quality control departments fully equipped with equipment to evaluate quality at every levels of production until the products are reach customers palm. They realized the top of meet customers with the precise need and assumed that customers first buying experience may impact their future do it again buying behavior. Besides that, they always meet up with the needs of ISO 9001(quality management system) to ensure their company is were able to the best quality benchmarks which recognized globally. Actually, by concentrating in quality management, Shoon Fatt Biscuit & Confectionery Factory Sdn Bhd has expanded their market to global since 12 months 1992.
In addition, Shoon Fatt Biscuit is providing 10 way of measuring the full total quality management to let their director learn and understand about the product quality management. This is very very important to a company since when their professionals have the knowledge about the quality management, the director can help the company to boost wherever areas are necessary to boost. Shoon Fatt Biscuit always want to meet the demand of the ISO 9000 need so they must ensure that the execution of the 10 factors of the full total quality management.
Besides, based on the review, Shoon Fatt Biscuit can find out about their quality management whether is effective or not in our country, Malaysia. It is because there will vary effectiveness of quality management based on the assertiveness and the uncertainty avoidance. In case the assertiveness is low, than the quality management effectiveness may also be low. Furthermore, the higher level of the uncertainty avoidance will also lead to high quality management effectiveness. So Shoon Fatt Biscuit has a higher level of quality management because our country has high uncertainty avoidance and low assertiveness.
As the developing strategy will have an effect on the customer emphasis, Shoon Fatt should perform different survey to be able to decide which production strategy they need to apply in order to gain the customer focus. For instance, Shoon Fatt may choose niche market differentiator manufacturing technique to gain the customer focus and have more compatibility to get the competitor. Besides that, inventions have to been modified by Shoon Fatt in order to get better quality management. Shoon Fatt should enhance the management leadership to be able to lead the staff member in the manufacturing plant to achieve the goal. With all the current creativity adapt by Shoon Fatt, the product quality management will be increase, the sales will be increase, the income will be increase as well. Furthermore, food quality management must be well concern by Shoon Fatt, because the food quality will immediately affect the whole manufacturer. If the meals quality have any negative comment or complain, it'll affect the maker brand image and brand collateral. Therefore, quality management is very important for a firm or corporation.
4. 0 Debate and conclusion
It is important for each process of the business production to be performed as each process performs an important role to the ultimate production of the merchandise. You can find 10 procedure for the company's development which is organizing & weighting, blending & dough making, fermentation, pressing, shaping, cooking, spread oil, detection, creaming and presentation. Preparing & weighting is important as right amount of element and the right ingredient to be able to produce the biscuits. Blending & dough making is where in fact the process of mixing up of the chosen ingredients to produce a dough for further process. This process is important as to make a biscuit, the form or dough form is vital before further process.
Next will be fermentation where in fact the dough is left in the dough nourishing area to allow it be fermented which is important to be able the dough to be hardened and move to another process to make a tasty and crispy biscuit. Pressing process is where the dough is laminated and rolled to be able to guarantee the standard sheet width of every biscuit. Shaping is where in fact the biscuits will be designed according to its type as it is importance to keep up a standardized quality biscuit.
Next it'll proceed to the baking where in fact the designed dough will be baked in the oven in a higher temp which is control by the personnel to avoid any over burnt or uncooked biscuits. Dispersing oil is where in fact the cooked biscuit will be propagate by oils for the biscuit to increase its appearance and the tastes of the biscuit itself. Detection is where it picks up any unknown material that might have been inside the biscuit to avoid any health problem issues over their biscuit by their customers. Later will be the creaming process where certain biscuit that would have to be creamed is then layered with a cream at each biscuit to increase the flavor of the biscuit. Last but not least will be the packaging where in fact the done biscuits will be packed corresponding to its type of biscuit. This process is important as the workers must ensure that every of the biscuit is positioned to its right packaging.
Facility layout is important as it enable the creation process to be clean if the center layout is located in a tactical place. Shoon fatt has 2 storey building where office, canteen, bathroom, surau and factory are situated. Their facility layout is useful because before going into the factory, workers or visitors must go thru the changing room where their clothing is modified to an effective one and wear extra accessories like gloves for cleanliness purpose. From getting ready and weighting level to packaging level has a very proper facility design where efficient structure is manufactured so that movements to each level is short and efficient. They may be stairs to enable easy motion to the stage and machines that can travel the dough or product to the next particular stage. As for Shoon fatt quality management, it includes implement quality control division where it is to procedures the grade of every levels from the ingredient to the ultimate product because it is important to keep up a quality where customer will identified it as a good product and can increase the chances of having brand commitment for shoon fatt's products.
As to maintain or strengthen the current talents of the company production procedures like capital rigorous, Shoon Fatt may need to have a regular check up or maintenance so the machine run in a perfect and healthy condition. They are able to also keep up to date and buy the current or most advanced technology to increase their creation line and decrease the time of production. For higher and standard quality, machines replace staff which the problem can be minimize ensuing an increased and standard quality of their product. So, regular maintenance of the device is important to ensure a higher and standard quality product being produced. Time Cutting down is one of the effectiveness of the corporation as the machines helps in this continuous development collection. Adding machines or regular check for the device is important as it helps the production line to save time.
As for Shoon fatt quality management, it includes implement quality control section where it is to procedures the quality of every periods from the element to the ultimate product because it is important to maintain a quality where customer will identified it as a good product and can increase the chances of having brand commitment for shoon fatt's products.
As for weakness like its low inflexible of development series, company can improve the flexibility of the production line to meet up with the changing market demand by reducing the installation times, as installation reduction makes it possible for the company to produce small amount of biscuits based on choice of small customer communities to a more variety choice. Periodic inspection is required to minimize the breakdown of the solitary machine, if one machine is divided this will drag the whole creation collection to a slower rate due to the fixing of the machine. For the staff low incentive, the way to improve it is to improve worker's skills through job rotation and cross-functional training which can allow them to fill different job position throughout the development leading them to an assortment experience gained and doing and facing the same job opportunity again and again daily. In fact, this allows the staff to learn more about the production line and has the excess knowledge to resolve the situation if there's a default throughout the development line.
To increase or maintain the durability of the facility structure, Shoon Fatt must fully utilize the location to run the operation, through the use of the L or U designed biscuit plant structure so that they can maximize every square feet of that place and optimize the place by allowing easy activity from one place of the process to another. Not just that, to improve the versatility of the warehouse, Shoon fatt can increase the space of its warehouse so that more products can be stored. Placing the store room can be effectively planned, where the store room which is stored with the uncooked materials should be place as near as it can be to the creation process so that less work or work is required to transport the fresh materials to the creation process.
As because of its weakness for the facility layout, it includes poor protection in the manufacturing plant. As there is as much as 400 employees in the corporation so each of the department requires a firefighting equipment or first aid equipment in the event there's any problem arise. In addition, the building design is unsuitable as well as its 2 storey building is not really a suited choice for a biscuit company. Shoon fatt can in fact convert the 2 2 storey building into a large warehouse or 1 storey building to avoid any high cost to bear. To improve the heavy cost to be innovative for the quality management, careful steps are needed to be sure creating a fresh product or new flavour will never be a damage as the price of innovative is high and needed every particular or excise data to be exact so that the cost will not be wasted.
As to fortify the quality management for shoon fatt, they can be more innovate in the sense creating more variety of product or even more flavour of the merchandise so that customer will understand their product as a good brand equity and being the leader in biscuit industry. To increase the heavy cost to be innovative for the quality management, careful steps are needed to be sure creating a new product or new flavour will not be a damage as the cost of innovative is high and needed every particular or excise data to be exact so that the cost will never be wasted.
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