quality mercedes in turkey

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Istanbul Technical University

Quality Assurance and Control

Fall 2013 – TERM PROJECT

Group No: 8

070100049 Aybüke Kayacı

070090044 İlayda Tuna

070100506 Ceren Görgüner

070100018 Murat Şenzeybek

070100108 Ünal Nergiz



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Table of ContentsQuality Assurance and Control ......................................................................................... 0

AUTOMOTIVE SECTOR ANALYSIS ..................................................................... 2 The Contribution of the Sector to GNP ............................................................................ 2 Exportations ........................................................................................................................ 3 Capital Accumulation ......................................................................................................... 5 Labor Structure and Employment .................................................................................... 7 Level of Technological Development ................................................................................. 8 Research and Development Potential ................................................................................ 8 Expectations for Future Developments ........................................................................... 10

STUDY OF THE SELECTED COMPANY ............................................................ 11 MERCEDES-BENZ .......................................................................................................... 11

Quality Strategies and Policies ....................................................................................... 11Quality Philosophies ....................................................................................................... 11Quality Management System Implementations .............................................................. 12Quality Techniques and Methods Employed .................................................................. 12

Sustainability of Quality ................................................................................................. 12Training .......................................................................................................................... 13Customer Satisfaction ..................................................................................................... 14Employee satisfaction ..................................................................................................... 14Quality of Suppliers and Satisfaction of Suppliers ......................................................... 14Business Results ............................................................................................................. 15Impact on Society ........................................................................................................... 15

CONCLUSION .......................................................................................................... 15

AUTOMOTIVE SUPPLY SECTOR ANALYSIS .................................................. 16 The Contribution of the Sector to GNP .......................................................................... 16

Exportations ...................................................................................................................... 16 Capital Expenduture ......................................................................................................... 18 Labor Structure and Employment .................................................................................. 19 Level of Technological Development ............................................................................... 20 Research and Development Potential .............................................................................. 20

Expectations for Future Developments ........................................................................... 21

STUDY OF THE SELECTED COMPANIES ........................................................ 21 HAYES LEMMERZ JANTAŞ ........................................................................................ 21

Quality Strategies and Policies ....................................................................................... 21Quality Philosophies ....................................................................................................... 21

Quality Management System Implementations .............................................................. 22Quality Techniques and Methods Employed .................................................................. 23Sustainability of Quality ................................................................................................. 23Training .......................................................................................................................... 23Customer Satisfaction ..................................................................................................... 24Employee Satisfaction .................................................................................................... 24Quality of Suppliers and Satisfaction of Suppliers ......................................................... 24Business Results ............................................................................................................. 25Impact on Society ........................................................................................................... 25

CONCLUSION .......................................................................................................... 26

Bibliography ............................................................................................................... 27

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Other 71 73 68 64

% Share in 500 Major Industry Organizations in 2009 (İstanbul Sanayi Odası,2011)

Topic Sales from Production (net) Sales Revenue (net) Export Employment

Automotive 13 12 27 11

Textile 4 4 6 13

Food 12 10 5 11

Other 71 74 62 65

Graph 1: Automotive Production (units) (Aksongur, 2012)

Exportations

When we look at Turkish economy from wide range of perspective, we see that

automotive sector is the leader in exportations. Automotive industry had 15,2% share

of exports in 2010 and its share in 2011 over 2010 was 17,4.



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Table: Exports with respect to sectors in 2010 and 2011 (OSD, 2012)

When we analyze the exportation figures in automotive sector, we can easily

observe that it does not have a rapid increase because of economic crisis but generally

it is increasing every year except some negative economic conditions.

Exports and Imports (million $)

Table: Motor vehicle and automobile import and export figures (OSD, 2012)

In Turkey, there are some main automotive manufacturers, which have important

contributions to the economy. When we dig deeper, we see that the leader of the

market in exportation is Oyak Renault, followed by Ford Otosan and Tofaş.



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Table: Exports by Local Manufacturer (Aksongur, 2012)

When we analyze the automotive sector‟s sub-sectors as passenger car and

commercial vehicle, we see that passenger car exportation has more share in motor

vehicle export figures. Within commercial vehicles, pick-ups has the majority in

export.

Table: Motor vehicle export figures (Aksongur, 2012)

As it is clearly seen from the figures and tables, automotive sector has big share

on exportations, thus, this sector is very important for Turkish economy. Although

exportation has decreased relatively in the beginning of 2012, we can figure out from

the whole picture that automotive sector exports are generally increasing.

Capital Accumulation

There are 17 automotive manufacturers in Turkey (Invest in Turkey, 2011).

When we analyze the table below, we can see that 13 manufacturers‟ total production

in 2012‟s first three months, is 281,239. The most successful manufacturers have



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established joint ventures with foreign producers. They are listed on the table below,

but the best four are; Oyak Renault (France based), Ford Otosan (US based), Tofaş (a

joint venture between Fiat – Italy- and Koç Holding conglomerate) and Toyota (Japan

based). These four manufacturers have over 80% share of production capacity in

Turkey. The capital accumulation is also caused by the sub-sector production and

exports. While the automotive main sector‟s total export revenue in 2011 is

approximately $ 12 billion, component industry‟s total export revenue is app. $ 7

billion, which is quite much for capital accumulation.

Table: Automotive production by manufacturer (Aksongur, 2012)



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As it is seen from the table above, automotive sector has a crucial

amount of capital accumulation. All these tables and figures shows that capital

accumulation in automotive sector is very high and will rapidly grow with the

improvement in Turkish economy.

Labor Structure and Employment

According to Turkey Automotive Sector Strategy Document and Action Plan

published on February 2011, in the year 2008 the main automotive sector which

directly produces vehicles, provided employment opportunities for 50,000 people and

that number has reached 250,000, with the people in the related industries. Besides,

more than 150,000 people were employed in service departments such as sales and

marketing. Whole automotive sector in Turkey is now containing more than 400,000

people working in it.

Traffic Security Motor Vehicle

Registration, Notary Portion, Component and System

Health Raw Stuff Road Maintenance and Repair Renewing Market

Finance Production, Maintenance Tools

Logistics Upper Structure and Accessory

Assurance Distrubitors/Importers

Transportation Authorized Services

Fuel and Lube Oil Distribution Authorized Retaiers

Driver Licence Institutions Independent Vendors/Galleries

Media, Public Relations and Marketing Independent Services/Repair Shops

Security, Catering and Cleaning Corporations Sellers of Spare Parts

P U

B L I C

S E R V I C E S

I N D U S R T Y

T R A D E

Table 1: Work Areas Automotive Sector Provides Employment Directly or Indirectly

Talented and trained human resource is accepted as fundamental sector need,

for sustainable international competition and growing in automotive sector. Especially

in order to get benefit from after economic crisis opportunities and to compensate

expectant exportation projects, qualified human resource is crucial for automotive

sector.



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Level of Technological Development

Automotive sector is closely following new technological developments since

there is an increasing competition and variable demands changing from time to time.

The automotive industry, with the 85 billion € in total R & D expenditure is the

world's second largest area of investment in technology and innovation (OTEP,

March 2011). The technologies used in the automotive sector have gained

momentum with the transition to automation. Computerized Numerical Control was

added and the counters in the traditional automotive manufacturing, human impact is

reduced. As a result, errors are decreased and productivity is increased.

Technological level of automotive industry can be analyzed by dividing into

two subtopics; manufacturing technology level and products‟ technology level.Computer Aided-Design (CAD) and Computer Aided-Manufacturing (CAM) has

become standard and expected technological fortunes within manufacturing

technology level process. In addition to this some ecological concerns has forced

companies to revise their manufacturing systems as „ecological friendly‟

manufacturing systems. Cellular manufacturing systems, flexible manufacturing

systems and just in time process technologies are also standard assets for automotive.

Research and Development Potential

The major manufacturers in automotive industry in Turkey are the joint

ventures of global automotive companies. It is clear that restricted number of

companies in Turkey have R&D departments. R&D capacity in Turkey is especially

centering on heavy and light commercial vehicles. As a significant example for that is

the case that a light commercial vehicle model of Ford named Transit Connect was

designed and manufactured in Turkey and exported to even USA.In the last decade some important projects have been made to sustain

competitive technologic ability and R&D potential. The most important of these

projects was foundation of OTAM which was a university-industry cooperation

project at the beginning between Istanbul Technical University (ITU) and Automotive

Manufacturers Association (OSD). In addition to OTAM there is another foundation

named Automotive Technology Platform (OTEP) which is being implemented by

OTAM and supported by TUBITAK. OTEP is being formed with 27 members of

automotive manufacturers‟, university and public representatives.



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According to TUBITAK-TEYDEB data‟s as it is shown in the Table 2, since

1995 to 2009, cumulative number of 167 automotive main industrial and number of

425 automotive related industrial projects were financed by TUBITAK-TEYDEB.

Table 2. Granting Aids for Automotive Industry Between the Years of 1995 – 2009

Turkish governments are raising the grants for R&D in automotive industry in

very recent years as it is seen in Table 3. The only exception was in the year of 2008

in which the global economic crisis has been experienced.

Table 3.R&D Government Spending



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Expectations for Future Developments

Automotive industry is seriously supported and followed closely by both

government and private sector. By introducing new laws and making new legislative

arrangements some promising results have already been taken. As it is mentioned in

this report Ford exported made in Turkey light commercial vehicles to USA and Fiat

developed a new model named Linea in Turkey.

A SWOT analysis has been made and a new vision and mission has been

cleared by Ministry of Industry and Trade. In consideration of that analysis some

possible developments are summarized as;

Consumers will be in expectation of cheaper cars without giving up comfort,

high performance and security demands.

Demands of upper segment vehicles will be directed to the lower segment and

middle segments.

Demand for environmentally friendly vehicles such as electric and hybrid

vehicles will rise and this will be supported by public policies.

R&D and manufacturing activities will be shifted from traditional centers to

less developed countries.

Long term vision for Turkish automotive industry is considered as ‘Being

Manufacturing and R&D Base in the Region’ . Under this consideration main

mission and purpose for Turkish automotive industry is defined as „ I ncreasing

Sustainable Global Competit ive Power and Providing the I ndustry in to a High

Value- Added and High Technology Intensive Structure’ . To achieve that main purpose following sub-topics were determined;

Improving the infrastructure of R&D

Improving design, manufacturing and branding skills and capacities of

companies

Improving internal and external markets in automotive industry

Improving legal and administrative arrangements

Improving physical infrastructure



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STUDY OF THE SELECTED COMPANY

MERCEDES-BENZ

Quality Strategies and Policies

Mercedes-Benz main quality policy is “Nothing but the Best for our

Customers and the Environment. Let's do our Best together with Continuous

Improvement…” and this policy effects both mission and vision of the company. As

the mission, Mercedes-Benz interiorizes “Our philosophy is clear: we give of our best

for customers who expect the best - and we live a culture of excellence that is basedon shared values. Our corporate history is full of innovations and pioneering

achievements; they are the foundation and ongoing stimulus for our claim to

leadership in the automotive industry.” In other words, they try to provide customer

satisfaction beyond expectations and also aim to sustainable growth through their

innovative and competitive structure. The firm‟s vision is formed “We invented the

automobile – now we are passionately shaping its future. As a pioneer of automotive

engineering, we feel inspired and obliged to continue this proud tradition withgroundbreaking technologies and high-quality products.” with this insights.

Quality Philosophies

Within the body of Mercedes-Benz, Kaizen concept is adopted as a principle

of Total Quality Management since 1998. From that time, they have started to

implement this mentality with some workshops. These workshops are arranged about

once a month and each workshop involves a workstation. As a structure of Kaizen

philosophy, continuous improvement is the main thought and owing to this thought,

the betterment is realized including whole employees and it costs low prices. This

philosophy provides to the company to make real their sense of quality like reliable

and durable products, thoroughgoing delivery and faultless workmanship.

Furthermore, the company implements Six Sigma engineering techniques. Six

Sigma projects help to the business processes in terms of quality, productivity,

rapidity and at the same time help to the clients with cost efficient products. These Six

Sigma projects are carried out at four stages; measurement, analysis, improvement



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and control in the company. It starts with to determine the present conditions, holds

with error analysis and error recovery and ends with development activities‟

persistency.

Quality Management System Implementations

Mercedes-Benz is the first company in Turkish primary automotive industry to

get the ISO 9002 quality certificate in 1994 and ISO 9001 quality certificate is

obtained in 1995 for their Davutpaşa and Hoşdere production plants. Furthermore,

Mercedes-Benz Aksaray Truck Plant was awarded ISO 9002 quality certificate for

automobile industry by TUV Sudwest /Germany in the year 2000. Additionally,

Mercedes-Benz has the certificate for ISO 14001 environment management standards

since May 2000 and the certificate for ISO 9001:2000 and ISO/TS 16949 since March

2002.

Quality Techniques and Methods Employed

Within Mercedes-Benz, we understood that the main purpose to improve their

degree of quality is to reduce defects and to provide customer satisfaction. In order to

reduce their defects, Mercedes-Benz implements some training for their both

employees and customers. The basic criteria to decrease the defect level are

employee, so we can easily understand why they train their employees. However, it is

more complicated that what they are doing to train their customers. It is an elucidating

more than training.

Sustainability of Quality

The main issue related with quality in the company is to carry out the quality

processes as voluntarily. It means that the implementations of quality are not an

obligation for the firm. As we mentioned before, their main quality idea is to do their

best together with “Continuous Improvement”. Therefore, Mercedes-Benz‟s sense of

quality is related with not only their amount of sales but also the services after sales.

In addition, their quality certification is changed and improved once every three years.



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Training

MBT intensively cares about wide scale training programs, which include

distance education, workshops, conferences, interviews, classroom training etc. These

training programs are mainly focusing on personal improvement and professional

qualification. With company‟s special education database, each employee has his own

responsibility to improve himself about his profession. With this method, MBT keeps

its strong corporate culture according to human resource department‟s career plans.

Each employee of MBT has the ability to improve himself from the first day

of beginning to work with MBT and this education concept‟s most important part is

sustainability. There are various of opportunities for employees to get trained in any

topic of their profession, any time. MBT‟s education programs aim to reduce defect in

the process in their Quality-Assurance Laboratories. The trainings are arranged to

minimize assembling defects and maximizing quality and customer satisfaction. The

tests made in the laboratories are focusing on the usage of torque, welding, coloring

applications and controlling. The most important test is about collision issues.

With the training program of MBT, employees are educated not only for their

profession, but also to improve their personal characteristics and skills such as leadingand language skills.

According to this intensive and sustainable education system, MBT provides

high quality and satisfaction level for their customers. Guaranteed maintenance is no

doubly resulted from this strong corporate culture, which focuses on continuous

training programs and lifelong learning system. Consequently, these training

programs in the end result in having quite high competitive advantage.

MBT arranges some training for the employees to reduce defect in the process

in their Quality-Assurance Laboratories. With these training, MBT aims to reduce

assembling defects and increase quality and customer satisfaction. Both the

employees and the suppliers can take part in the trainings. In the laboratories, they

arrange some training but also they test some functions such as the usage of torque,

welding, coloring applications and controlling and the most important thing is

collision tests of course. In MBT training program, Lean Production trainings,



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Daimler Chrysler Production System trainings and 5S trainings are arranged and

wasteful expenditure is prevented successfully.

Customer Satisfaction

Another important focus topic for MBT is customer satisfaction. MBT notices

the importance of the customer satisfaction for keeping sustainability infinite. The

customer concept for MBT is not only the external customers as buyers. They also

care a lot about internal customers. To protect their high quality level, they always

stay conscious about the importance of the internal customers. To produce high

quality goods and well satisfying services, firstly all employees must be satisfied with

the input they get from the previous process‟ output. According to this idea, all

employees do their job well to satisfy primarily internal customers and then the

external ones.

These efforts to satisfy every kind of customers provide MBT sustainable and

high level of satisfied customers; hence, they keep their strong brand image and carry

their current successful conditions to the future.

Employee satisfaction

MBT has always determined high employee satisfaction. The company desires

its employees to be inclined to development in order to originate a team which is

totally able to meet customer satisfaction needs and set a higher standard. Thereby

human resources policies are created for employees to be innovative and give the

responsibility to increase of their long lif e learning skills and so the company‟s itself.

The company looks for their employees to attend active participation to management

and generates an appropriate environment for that.

Quality of Suppliers and Satisfaction of Suppliers

Automotive industry requires every single manufacturing step to be in high

manufacturing standards since a single step in process affects total quality. So quality

of suppliers is a vital subject. Producers co-ordinate some trainings for suppliers and



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try to increase the suppliers' quality. MBT thinks that quality of suppliers means

quality of its products.

For assuring quality of suppliers MBT adapted to VDA 6.1 system. This

system is a control mechanism for supplier quality. Internal systems and

customer/supplier satisfaction and quality is audited by VDA 6.1.

Business Results

Quality is a crucial subject for MBT and the company is aware that the

Mercedes brand has always referred to quality. The company has never recalled

vehicles and MBT is working hard to sustain that. As a result of quality policies MBT

implied very important conclusions has been seen. The coach named Travego which

is designed and produced in Turkey has won „The Coach of The Year‟ prize and the

air bag technology for coaches was invented in Turkey, Hosdere plant.

Impact on Society

Mercedes-Benz has very important brand image, which is well-known all

around the world. There are four main topics related with “Mercedes” in society‟s

mind. It is obvious that most of the customers are satisfied with the goods and

services of Mercedes Benz Turk. The satisfying services are mostly about technology,

safety, environment, low repair and maintenance costs, minimum fuel consumption,

attractive financing possibilities and high selling prices in used vehicles as brand

value, behaving customers in a special way and loyalty to delivery date commitments.

All of these valuable services have a perfect impact on society to establish a strong

brand image for MBT.

CONCLUSION

The automotive sector in Turkey has a significant part of national economy

and it is still going on growing. The automotive producers are exporting about %40 of

their productions.

Quality systems are improving in the automotive sector in Turkey.

Companies are realized about the importance of quality and making important



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changes on their quality systems. The reason of that, they know when quality

improves, customer satisfaction is becomig better. So the most important thing in a

company's quality concepts is customer satisfaction.

AUTOMOTIVE SUPPLY INDUSTRY ANALYSIS

The Contribution of the Sector to GNP

Growth in automotive industry in Turkey brought growth in automotive

supply industry. In 2009, total endorsement of Turkish automotive supply industry is

calculated as $13.3 billion. Turkish automotive supply industry can fulfill %80 of

requirements of Turkish automotive industry.

In Turkey almost all parts of car are produced. Parts of cars which are

produced in Turkey are listed below.

Engine and engine components

Rubber and rubber components

Drivetrain

Braking system and components

Hydraulic Suspension components

Security parts

Chassis components

Molding components

Electrical equipment

Accumulator

Seats

Because of its geographical advantage Turkey is a preferable country for

automotive supply industry investments. Therefore about 200 companies made

investment to Turkey and consequently increases GDP.

Exportation

In Turkey, exportation of automotive supply industry was $896 million in

1997. Then it increased to $7 billion in 2008 but after economic crises in 2008,

exportation decrease %30 and it became $5.2 billion. Effects of economic crises are

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losing, so exportation has been increasing again and it became $8.4 billion in 2011

and $8.7 in 2012.

EU has the biggest share on Turkish automotive supply industry‟s exportation.

%70 of exportation goes there. Percentages and volumes of countries‟ expor ts can be

shown below.



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Capital Expenditure

Today there are more than 1120 firms which are being service in Turkish

automotive supply industry and there are approximately 700 plants. However just

300-350 of them are manufacturing original parts for companies. 195 of them are

TAYSAD (Association of Automotive Parts and Components Manufacturers)

members. The others are usually small budget companies and they are focusing on

renewing market.



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Nearly 200 foreign based companies select Turkey to make investment to

automotive supply industry due to export potential of regional advantage. There are

huge international firms between them like below.

Labor Structure and Employment

Automotive supply industry provides approximately 150,000 direct and

750,000 indirect jobs opportunity for people in Turkey. Because of software based

manufacturing, most of employments are technical staff. Therefore industry supports

to increase technical culture level. On the other hand, its creating small business

feature help to spread this technical culture to society.

For the purpose of reaching to the costumers, automotive supply industry also

works with marketing, distributor, fuel, agriculture, iron and steel, finance and

insurance sectors and this provides jobs opportunities in these sectors.



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Level of Technological Development

Automotive supply industry is one of the industries which have the highest

technological development speed. In Turkey, technology of automotive supply

industry is high enough to produce for OEM firms which are operating in

development west countries. Also %70 of exportation of industry with EU countries

this also shows reached technological level.

In Turkey %30 of the companies which operate in automotive supply industry

have international quality certification (ISO 9000, QS 9000, ISO 14000 vs.). Also rate

of the companies which have their own purification plant is %7.

Research and Development Potential

In Turkey‟s region there is not any country which has successful research and

development works in automotive supply industry. Especially after 1990 R&D studies

in Turkey is developing rapidly. Turkey has a young and dynamic population because

of this reason local and international companies consider Turkey as a perfect place to

invest.

Because of EU regulations Turkey has to increase R&D rate in GDP to %3

and also Turkish automotive supply companies reach important level in „know-how‟

with their experience. In a near future they will start to sell license to other countries.

Consequently it is easy to say Turkey will be R&D center of region.



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Expectations for Future Developments

Turkey has a program to reach 2015 targets in automotive and automotive

supply industry since 2007. These targets are producing 2 million cars in a year, being

in top ten at total product, being in top three in EU and being in top five at R&D in

EU

To reach these purposes government reduced taxes to bring foreign investor to

Turkey. Result shows that there is a deviation between %7 - %10 from plan. Purposes

are still reachable but Turkey needs more economical stability and sustainability.

STUDY OF THE SELECTED COMPANIES

HAYES LEMMERZ JANTAŞ

The firm has been formed in 1968 by Cevdet İNCİ as “Jantaş Jant Sanayi ve

Ticaret A.Ş.”. At first it was formed in Izmir and after, it brought the technology,

which was referred as the best, to Turkey at the first place. After bringing that

technology, it has turned towards producing rims for heavy vehicles.

Quality Strategies and Policies

The mission of HL JANTAŞ is to produce rims in a high quality. The visionof the company is based on the growth of the company by customer satisfaction,having the best employees, reducing the costs and being the premier automotive

supplier.

Quality Philosophies

Our firm has aims that expire in three years. To reach its aims some training

methods are applied in the production lines to reach Total Productive Maintenance.

As a quality philosophy the firm has started with Lean Production since 2004. After,

Six Sigma has been put into implementation. In Six Sigma, in one production line

there is one expert team leader that is responsible from all process, 3 team leaders, 29

foremen that controls the working conditions of the blue collars and 180 blue collars.



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The firm has held 59 Six Sigma projects with this labor force. Six Sigma is

implemented in the firm as daily reports that are gathered from the machinery from

every line. These reports include cycle time of production, stopping times of the line

and the causes of these stops, production rates, overall equipment effectiveness,

performance and availability of usage. Considering the reports, analyzes are made and

by combining these analyzes and reports, presentations are made to summarize the

situation of the production line. Sorting, Straightening, Sweeping, Standardizing and

Sustaining process that the firm uses is called 5S methodology. It is applied on the

business to establish orderly flow, eliminate every kind of waste and to organize the

workplace, in another word, to insure Total Productive Maintenance. Also Kaizenis

used in the production, since 2007. There has been held 80 projects of Kaizen and it

helped to develop capacity in the rate of 45%. Also, Overall Equipment Effectiveness

has been increased by 40%.

Quality Management System Implementations

HL JANTAŞ has the convenience to the condition of ISO/TS 16949:2002

quality system. The firm reviews this convenience in terms of sustainability, quality

policy and the effectiveness in satisfying the objectives in 6 months‟ period, at least

once a year. These reviews happen according to the 01-PR-01 Procedure of Review of

the Management. The firm has organized all the methods in the system to become a

source of data for analyzes, in the purpose of following the current tendency of

quality, process performance and quality levels of important products. The quality

certifications that the firm has are;

-

DIN EN ISO 9001-2008 (En)- DIN EN ISO 9001-2008 (Ge)-

DIN EN ISO 9001-2008 (Tr)-

ISO-TS 16949 2009 (Certificate En)- ISO-TS 16949 2009 (Certificate Ge)-

ISO-TS 16949 2009 (Certificate Tr)- TS EN ISO 14001-2004 (En)- TS EN ISO 14001-2004 (Tr)-

TS EN ISO 14001-2005 (En)- TS EN ISO 14001-2005 (Tr)- TSE Certificate of Conformity to Turkish Standards



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Quality Techniques and Methods Employed

As we mentioned in quality philosophies, the application of Six Sigma and

Kaizen which consists of many methods and techniques, are used in production lines.

There are some measurements for the quality of the inputs that are purchased from

other firms all around the world. They do not accept the raw materials that do not

match their understanding of quality level. Also, while the raw materials are in the

production line, some problems may occur. To prevent the defected products,

interventions are done during the process of producing. Another technique for

providing quality is the trainings based on Six Sigma, Kaizen, etc…

Sustainability of Quality

There is a continuous improvement in HL JANTAŞ for quality and

productivity. The firm is in the aim of making improvements on product quality,

especially on critical product/process characteristics, decrease the varieties, and

optimize the parameters on the aimed value. These improvements are done to reach

the level of zero defects.

Training

The quality trainings have significance for HL JANTAŞ for the reason of

preventing industrial accidents and time delays occurring because of the long-term

learning processes of new employees and provide sustainability. The new employees

are generally trained by the old ones in the product line. This reduces the costs that

can rise from the time delays which occur in the learning process of new employees,

turnovers and work accidents. By these trainings, the company holds the quality at the

same level before the arrival of new employees.

Also, to reach Operational Excellence, workshops are done to provide the

adaptation to employees to the strategy, concepts and creating tools. Additionally firm

has training tools for Six Sigma, Lean Production – for Kaizen- and Manage by Fact

Teams.



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Customer Satisfaction

Customer Satisfaction is followed and analyzed in HL JANTAŞ by;

- Monitoring the band performance of the parts that are delivered by the Quality

and Sales Departments

-

Tracking of the Field performances (performance notifications from customers

and guarantee returns) by the Quality Department

-

Evaluation of surveys that are prepared for the Original Equipment

Manufacturing customers, by the Quality and Sales Departments

-

Evaluation of the surveys that are prepared for the domestic A.M. customers.

Employee Satisfaction

HL JANTAŞ cares for the safety and health of the employees it has, so they

will work in an environment that provides them effectiveness. The firm has diversity

in employees that helps to increase the creativity. Also, firm makes employees to get

involved in all production steps. This situation makes the employees realize that they

are an important part of the company. Keeping the employees as a team makes them

create different ideas together and increasing the motivation of them. Besides working

as a team, individuality is always supported by the firm for increasing the individual

creativity. Another employee satisfaction factor is rewarding the employee when

he/she comes up with bright ideas or substantial solutions.

Quality of Suppliers and Satisfaction of Suppliers

HL JANTAŞ has its own quality standards for the raw materials that are put

into production. They purchase their raw materials from specific firms. These raw

materials are tested in quality department and after they are tested, they put together

the information about the raw materials in a computer program called SAP. If the test

result is acceptable, they continue from purchasing from that producer. If it is not, the

material is not accepted in the production line. The evaluations of suppliers are done

by the Planning and Purchasing Department and Quality Department. The suppliers

are satisfied by the product qualities of the HL JANTAŞ that are produced from these



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raw materials. Since the firm has a worldwide reputation, the demand for the

supplier‟s raw materials can increase in the market due to the output quality that can

be seen at HL JANTAŞ.

Business Results

HL JANTAŞ makes assessments of making market share researches by

comparing the current position with the competitors‟ positions by benchmarking.

As stated in Hayes Lemmerz‟s online brochure;

“Hayes Lemmerz is the largest Tier I supplier of automotive and commercial highway

wheels in the world, with global market share. A Tier 1 supplier is a supplier that

supplies products directly to the major automotive and commercial highway vehicle

manufacturers and that performs all of the design, engineering, manufacturing and

quality processes for its products.

Hayes Lemmerz is the only aluminum and steel wheel producer with a

substantial global presence. This gives Hayes Lemmerz an important competitive

advantage in the global sourcing of wheels by its Original Equipment Manufacturers

(OEM) customers. Customers value this global presence and award business tosuppliers that produce and deliver globally.

Hayes Lemmerz has introduced significant technical advances to secure its

position of leadership in the industry. For example, the introduction of the “Hi Vent

Wheel System” is generating a great interest with our customers and represents a

source of growth for the Company. The Hi Vent Wheel is a proprietary steel wheel

design with large ventilation areas. In combination with a variety of surface covers,

the Hi Vent Wheel System creates one design with multiple styling appearances that

closely r esembles an aluminum wheel. Another development is the Company‟s

leading edge and environmentally friendly Zinc Dust Brake Coating, which gives

added durability to the brake system.” (2007).



26

Impact on Society

Since Hayes Lemmerz has the largest market share, it has a large impact on

the society. The quality of its products determines the quality of the other firms‟

products. If it increases the quality of the outputs, other firms will have to increase

their output qualities to survive in the market because if they do not, the demand of

their products will fall dramatically. So, HL JANTAŞ has the control of the market‟s

product quality and all the consumers in the market will be affected by the quality

changes of the firm.

CONCLUSION

Because of great exportation potential with young and dynamic labor, Turkey

is a perfect country for automotive companies to produce. Consequently, automotive

supply industry has been growing also. Today, most of world‟s biggest automotive

supply companies operate in Turkey and these companies are making new investment

to country. It shows that companies are happy from result of investment to Turkey.

Turkey also an experienced country in automotive supply industry and there

isn‟t any country with high level of R&D success in this sector. So if Turkey can

achieve its targets, it will be leader of region in automotive supply industry.



27

Bibliography

Tuik . (2011). Retrieved 2012, from http://www.turkstat.gov.tr/Start.doAksongur, G. (2012). Turkish Automotive Intustry. Istanbul: TSKB Research.Invest in Turkey. (2011). Invest in Turkey. Retrieved May 5, 2012, from

http://www.invest.gov.tr/en-US/sectors/Pages/Automotive.aspx#PageTopİstanbul Sanayi Odası. (2011, September). http://www.osd.org.tr/ . Retrieved May 05,

2012, from http://www.osd.org.tr/OSD. (2012). Automotive Sector 2011 Report. Istanbul: OSD.Hayes-Lemmerz International, Inc. (2007). Hayes Lemmerz [Brochure]. Retrieved

from http://www.hayes-lemmerz.com/pdfs/Recruiting_Brochure_-- _September_2007.pdf

Sanayi Genel Müdürlüğü (2013) Sektörel Raporlar ve Analizler Serisi.

Tubitak (n.d) Parça Sektörü 2023 Vizyonu

İhracat Genel Müdürlüğü (2012) from http://www.ibp.gov.tr

http://www.ibp.gov.tr/




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