ISL 223E FUNDAMENTALS OF PRODUCTION MANAGEMENT
CASE STUDY31
Due Date: 31. 10. 2011 – until at 17.00 to Room B4082
TEMSAL GLOBAL’S PRODUCT STRATEGY
Temsa Global is an automative company with factories in Adana, Adapazarı, Egypt. It
produces buses, minibuses, and light trucks in its factories in Turkey. The company started
out its business as a licensor of Mitsubishi products in 1984, when it could manufacture only
the licensed products. Since 2001, Temsa Global has gradually developed design capabilities
to support the shift in its producy strategy. In 2009, Temsa R&D and Technology INC., which
was founded in 2003, had more than 200 employees.
In 2009, Temsa Global introduced its first city bus model, Avenue. Temsa Global has
designed Avenue primarily for the European markets, in collaboration with its customer
Arriva, a UK-based transport services company that has operations in 12 European countries.
Temsa R&D center cooperates with universities and research institutes on advanced
technologies and break-through applications. Avenue was designed by Temsa Global’s sister
company Temsa R&D and Technology Inc., and the new design has decreased the production
costs considerably. The cost reduction is expected to allow Temsa Global to price its buses
competitively with respect to its competitors’ similar products. Currently the bus industry is
moving toward hybrid power technologies, and green design continues to gain importance.
Temsa Global has managed to catch this wave early; Avenue is over 1,700 pounds lighter
than similar buses, thanks to the composite materials used in the body, and its hybrid version
offers 25% savings on fuel consumption.
The next step is to market Avenue in other European countries, as well as in Turkey.
Customers in different markets have specific requirements, and Avenue’s modular design will
play a pivotal role in offering customized products.
1
Operations Management 10e, Heizer, J. ve Render, B. (2011), pp. 214-215.
You are responsible for preparing report for answers of case study and discussion question Each group have to prepare short
report including 400-700 words for case study and discussion question as well. Be ready to present case study by using Power
Point. Use specific cover sheet which is placed on web site. Please do not forget to write your names and group name on cover. Put
your reports in the file which is placed at room of Res. Assist. Gül T. TEMUR (B408). GOOD LUCK.
2
Through product design, Temsa has become a global brand in less than a decade. The next
challenge Temsa faces is to support its customer-driven strategy with a service network that
covers markets with seemingly different characteristics. This may require acquiring new
skills.
1. What was the product strategy of Temsa Global in 2009? How was it different from
the product strategy in 1984? What organizational changes are required to support this
shift?
2. What are the possible advantages of investing in the R&D center for advanced
technologies? Discuss the implications, considering the changing perceptions and
demands of customers.
3. What should be the focus of Temsa Global in supporting its market-driven product
strategy and customized designs?
DISCUSSION QUESTION 3
Please think that you are a member of faculty committee of ITU Management Engineering. If
your goal is to reveal what aspects of education are needed to improve and how to perform,
how would you model a quality house for your case? Please clearly define all steps. If it is
necessary you can benefit from the department’s mission and vision.