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ITU MANAGEMENT FACULTYMANAGEMENT ENGINEERING PROGRAM

QUALITY FOR ENGINEERS2014-2015 Fall Term

TERM PROJECT Group Name : 8Name and Student Number of Group Members :

Student No Name Surname Signature for proof of participation1- 070100015 Tuğba Aydoğan2- 070100018 Murat Şenzeybek3- 070100061 Eren Akansel4- 070100070 Buğra Arslan5-6-

DATE: 15.10.2014

Analysis of the sector

1.The Contribution of the sector to GNP

According to the developed country markets with flexible labor conditions in Turkey, with contract manufacturing, on the one hand industry’s share in GDP, on the other hand, this process of entering the export figures rising trends have a positive impact to the growth. Until end of the 1990s, which is a net importer of white goods sector, nowadays, which most exchange in the foreign trade and it has become the highest competiveness each other Turkish firms’.

The beginning of the 1990s, exportations increase approximately from 60 million dollars to the 3 billion dollars as.It means likely 50 times which means it is strong component for the contribution to GNP.

2.Exportations

Turkey is the biggest white good producer in Europe. Therefore export numbers of this sector is very impoartant for Turkish economy. Production rates have been achieved in the industry while maintaining the momentum to become European leader.with a production capacity of about 25 million units, while exports increased in the same way. The sector’s exports in 2012 compared to the previous year, an increase of about %10 to USD 4,2 billion, respectively.

These improvements in export growth, its provide to become the world’s largest white goods products exporting countries and also, its help to increase their share of world exports by % 4,3 and was moved to the fourth line in the world market.

Turkey has 3 billion dollars as exportations. 66 percent of this exportations was carried out to the European union’s country.It has become like this while investing Research & Development in year to year. Initial sales and export ratio can be seen at the table.

Country ranking for export volumes is like this:

3.Capital Accumulation

Various companies has been operating in the industry until today, some of them has changed hands through mergers and acquisitons in the time. Today, in the industry, Arçelik A.Ş. ( Arçelik, Beko, Altus, Aygaz) and Vestel A.Ş. have the big market share as domestic capital. In addition German company which name is BSH ( Bosch, Siemens, Profilo), Italian brand as a Indesit, Ariston and Candy product with the factory.

Main of the production to gather in the Marmara region, Aegen region and central Anatolian. The main plants located in İstanbul, Tekirdağ, Manisa, Eskişehir, Bolu, Bursa, İzmir, Ankara, Kocaeli, Yalova, Kayseri, Konya and Bilecik.

4.Labor structure and employment

White goods structure, which make up % 90-95 of domestic market as well as the sixth largest white goods manufacturers consist of about 500 parts with over 50 medium-sized manufacturers. In addition, there are approximately 12000 dealers and and authorized services. There are 20000 as manufacturing companies in the industry. Besides, sub-industry and other suppliers are totally 120000 workers which are 105000 as blue collar employees. When we look at the education level of the employee, company has employee who not pass high school as 35000. 70000 employees graduated from high school successfully. And also there are high of 14000 employees who graduated from university and some of them has postgraduated.

5.Level of technological developmentToday the most important technological development in sector is energy efficiency.

Thanks to efficiency, consumers can pay less for energy when they are saving energy resources and nature. The reason for this importance is some of the white goods are operating for long hours so energy consumption is becoming an important problem. For example, refrigerators are usually working all day so little energy saving can create huge profit for consumers and nature. In the market, energy efficiency level of products reached A+++ level and number of pluses is still increasing.

Another important factor for consumers is time. In modern world people don’t want to spend their hours to wait washing machine, therefore companies have to increase speed of their machines. Also for the same reason capacity of machines is improving continuously.

Functionality is one of the new challenges for white goods companies. Consumers want more things from machines. Some of the consumers expect to cook three different kind of food with a same furnace at the same time.

6.Research and development potentialCompanies which produce in Turkey used to outsource their technology licenses from

foreign companies like General Electric, Bosch or Amco. After 1990 our producers started to make their R&D work in Turkey. Today cost of R&D researches is equal to %2 of total sector revenue. Nearly 1000 people is working in R&D departments of companies and according to ministry of industry white goods sector is the most innovative sector in Turkey (2012, Sektor Raporu).

R&D success of white goods companies can be seen at patent numbers. More than %10 of total patent applications comes from a white good company (Arçelik). Companies usually focusing these five are during their R&D researches.

New technology providing New product designs Green product Product development Reducing cost and increasing efficiency

7.Expectations for future developmentsConsumers’ expectation from white goods after 15years are machines with can launch

without touch control and robots with housework skill. Also they believe these machines must have a memory for daily works and machines should work when they are outside.

For close future consumers desires can be listed like this: Machines which can be controlled by smartphones More colorful and creative design Washing machines which give clothes after ironing Furnaces with calorie calculations Wireless white goods Using solar power in white goods

Problems of the Sector

The demands for white goods are highly affected by economic situation of country.

For example after 2001 economic crises demands for white goods are reduced %38. After

2003 sector gained an acceleration to grow. But again after 2008 world-wide economic crises

demands are reduced dramatically. After crises the demand is increasing as usual. For this

year, producers expect %25 growth for their sales which is more than their %10-15 forecast.

The numbers at above shows that companies which is operating in this sector has to be

flexible. Demand for their product can be change %20-30 just in one year. This is very rare

when compare it with other sectors.

Also the sector has a quality problem which is caused by old product. Today in Turkey

important parts of people use old products. These products need maintenance frequently. This

is very bad situation for consumer and corporate images. Therefore the companies should

incent consumers to modernize their white goods.

REFERENCES

Capital Dergisi ‘Her Sektorun Sorunları başka’ (http://www.capital.com.tr)

Sanayi Bakanlığı 2012 Beyaz Eşya Sektör Raporu

(http://www.sanayi.gov.tr/Files/Documents/beyaz-esya-sektoru-raporu-

16042013164305.pdf)

Beyaz Eşya Sanayicileri Derneği (http://www.turkbesd.org/index.php)

Mehmet Ozkul ‘Türkiye Ekonomisinde Beyaz Eşya Sektörünün Önemi’

(http://ekonomikyaklasim.org/pdfs2/EYD_V22_N78_A04.pdf)

BSH Ev Aletleri gerçekleştirdiği araştırma ile tüketici beklentilerini ortaya

koyuyor (http://www.bsh-group.com.tr/page.aspx?id=168&news_id=901)