EUROMA 2007, Bilkent University, Ankara, Turkey
An Assessment of Contributions of
Operations Management to Academia
and Practice in Turkey
Prof. Dr. Gündüz Ulusoy
Faculty of Engineering and Natural Sciences
Sabancı University, Istanbul
Director, TÜSİAD-Sabancı University
Competitiveness Forum
1
Gündüz Ulusoy
CONTENTS
 TURKEY:A BRIEF INTRODUCTION
 COMPETITIVENESS PROFILE OF TURKEY
 SOME OBSERVATIONS CONCERNING
MANUFACTURING INDUSTRIES IN TURKEY
 AN ASSESSMENT OF OPERATIONS MANAGEMENT
IN TURKEY
 CONCLUSIONS
2
Gündüz Ulusoy
TURKEY: A BRIEF INTRODUCTION
SOME ECONOMIC INDICATORS
2000
2001
2002
2003
2004
2005
GDP per capita, PPP (current
int. $)
6.470
6.030
6.519
6.929
7.698
8.407
9.106
GDP PPP (current int. $,
billions)
438,91
415,75
456,61
493,34
552,67
611,41
660,84
20
21
20
19
18
18
18
54,92
54,4
44,96
25,30
8,60
8,18
9,59
Gross domestic savings
(% of GDP)
17
19
20
19
20
18
Foreign direct investment, net
(current million $)
112
2.855
962
1.253
2.071
8.727
Rank in the World
(GDP based on PPP)
Inflation, consumer prices
(annual %)
4
2006
...
20.120
Gündüz Ulusoy
DISTRIBUTION OF GDP AMONG SECTORS
Manufacturing
Agriculture
Mining and Construction
Service
100%
80%
60%
40%
20%
5
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
1970
1968
0%
Gündüz Ulusoy
DEMOGRAPHICS
2000
2001
2002
2003
2004
2005
2006
67,42
68,53
69,63
70,71
71,15
72,07
72,56
Mortality rate, infant
(per 1,000 live births)
38
...
...
...
...
26
...
Life expectancy at birth (years)
70
71
71
71
71
71
73
57,3
58,0
58,8
59,6
60,3
...
...
Population, total (million)
Urban population (%)
Percentage of Age Group 15-64
80
70
60
58,4
57,1
55,2
54,1
53,8
54,8
56,1
58,2
60,7
63
64,9
66,6
68,4
61,9
%
50
40
30
20
10
0
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2025 2050
6
Gündüz Ulusoy
EDUCATION
2000
2001
2002
2003
2004
School enrollment, primary
96
98
99
95
93
School enrollment, secondary
...
78
82
85
79
School enrollment, tertiary
23
23
24
28
29
Educational System
Total number of students
enrolled in universities:
1.247.404 (2004)
Ranking
30
31
32
33
34
In Open University:
695.591 (2004)
*
Country Index 0-10
Poland
4.440
Hong Kong4.417
Turkey
4.413
Portugal 4.333
Thailand 4.165
*Ultav, Panel Presentation at the National Innovation Initiative Meeting, Ankara, October, 2006
7
Gündüz Ulusoy
EDUCATION
Percentage of Degrees Awarded in Mathematics,
Natural Sciences and Engineering in Total
Math & Natural
Sciences
Engineering
Total
Undergraduate
9,7
17,4
27,1
Graduate
(Master’s)
7,8
21,5
29,3
11,4
23,3
35,7
Doctorate (PhD)
Science Technology and Youth*
Interest of youth
Ranking Country Index 0-10
17
Poland
6.720
18
USA
6.598
19
Turkey
6.581
20
Philippines 6.351
21
Spain
6.286
University Education
Meets needs of the economy
Ranking Country Index 0-10
31
Portugal 5.000
32
Spain
4.943
33
Turkey
4.921
34
Hong Kong4.917
35
Thailand 4.738
*
*Ultav, Panel Presentation at the National Innovation Initiative Meeting, Ankara, October, 2006
8
Gündüz Ulusoy
R&D AND INNOVATION: INPUT & OUTPUT
FTE R&D PERSONNEL AND RESEARCHERS
20
18
18
Number of Personnel
16
14
13
18
14
13
15
16
12
10
8
10
11
11
2001
2002
6
4
2
0
2000
2003
2004
Number of R&D Personnel (per 10.000 people)
Number of Resarchers (per 10.000 people)
10
Gündüz Ulusoy
FTE R&D PERSONNEL/RESEARCHERS
45
Number of Personnel (x1000)
38
40
40
35
30
27
29
28
33
34
2003
2004
25
20
23
23
24
2000
2001
2002
15
10
5
0
FTE R&D Personnel
11
FTE Researchers
Gündüz Ulusoy
R&D INTENSITY
2000
2001
2002
2003
2004
0,64
0,72
0,67
0,61
0,67
R&D as a percentage of GDP
COUNTRY
R&D
INT.(%)
Israel
4,72
Sweden
3,65
USA
2,72
Germany
2,48
Belgium
2,04
China
1,00
Spain
0,98
Portugal
0,80
12
Gündüz Ulusoy
NUMBER OF JOURNAL PUBLICATIONS
(SCI, SSCI, A&H)
20.000
17717
18.000
16.000
12492
12.000
10.000
7592
8.000
6.000
4491
3313
4.000
2.000
2333
208
238 288
313
394 433
577
694 1008 1080
1492
13
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
0
1973
Number of Articles
14.000
Gündüz Ulusoy
RANK OF TURKEY IN THE NUMBER OF
PUBLICATIONS (SCI, SSCI, A&H)
16
18
20
22
25
25
25
2000
2001
22
22
2003
25
1999
28
1998
26
19
27
30
29
32
34
14
2005
2004
1997
41
1996
44
37
34
1995
42
37
34
1994
40
1992
38
1991
36
1993
34
1990
World Rank
24
2002
20
Gündüz Ulusoy
APPLICATIONS AND REGISTRATION
FOR UTILITY MODELS
2500
2424
1896
Number of Utility Models
2000
1665
1479
1500
1206
914
1000
964
631
454
500
223
183
160
145
376
141
113
678
704
317
290
257
0
1996
1997
1998
1999
2000
Application
15
2001
2002
2003
2004
2005
2006
Registration
Gündüz Ulusoy
PATENT APPLICATIONS
6000
5165
Number of Applications
5000
4000
3433
3020
3000
2483
3156
1690
1531
902
1520
1000
713
170
189
2262
2877
2744
2000
3461
3214
2276
1152
1460
1577
1328
203
207
276
277
337
662
414
0
1996
2526
1874
490
1995
4075
1997
1998
1999
2000
National
16
2001
Foreign
2002
2003
685
2004
935
2005
1090
2006
Total
Gündüz Ulusoy
FOREIGN TRADE
EXPORTS AND IMPORTS
2000
2001
2002
2003
2004
2005
2006
27.775
31.334
36.059
47.253
63.167
73.476
85.502
Imports (million $)
54.503
41.339
51.554
69.340
97.540
116.774
138.295
Ave Annual Increase
in Exports
er=%20,6
Ave Annual Increase
in Imports
ir=%16,8
Volume (million $)
Exports (million $)
160.000
140.000
120.000
100.000
80.000
60.000
40.000
20.000
0
2000
2001
2002
2003
2004
2005
2006
Years
Exports (million $)
18
Imports (million $)
Gündüz Ulusoy
TOP 10 EXPORT DESTINATIONS (2005)
EXPORT
(1000 $)
SHARE OF
EXPORT (%)
GERMANY
9.455.050
12,9
UNITED KINGDOM
5.917.163
8,1
ITALY
5.616.755
7,6
U.S.A
4.910.633
6,7
FRANCE
3.805.661
5,2
SPAIN
3.010.857
4,1
IRAQ
2.748.524
3,7
NETHERLANDS
2.469.547
3,4
RUSSIAN FEDERATION
2.377.002
3,2
ROMANIA
1.785.402
2,4
EU-15
35.872.276
48,8
COUNTRIES
19
Gündüz Ulusoy
TOP 10 IMPORT SOURCE COUNTRIES
(2005)
IMPORTS BY
(1000 $)
SHARE OF
IMPORT (%)
GERMANY
13.619.796
11,67
RUSSIAN FEDERATION
12.869.945
11,02
ITALY
7.561.056
6,50
CHINA
6.867.856
5,88
FRANCE
5.883.702
5,04
U.S.A.
5.371.536
4,60
UNITED KINGDOM
4.690.129
4,02
AUSTRIA
4.053.558
3,47
SPAIN
3.549.778
3,04
KOREA
3.478.865
2,98
EU-15
47.094.120
40,33
COUNTRIES
20
Gündüz Ulusoy
DYNAMIC TRADE PERFORMANCE OF TURKEY
(2-digit SITC)
20
Underachievers
Underachievers
Champions
Champions
18
Petroleum
and products
Annual average growth of world trade (%) 2000-2005
Iron and steel
16
14
Essential oils; toilet
preparations
12
10
8
6
Telecommunications
and electronic
Sanitary and lighting
Rubber
equipment Plastics
fixtures
manufactures Non-electrical
Furniture
and
bedding
Fruit and vegetables
machinery
Manufactures of metals
Growth for world trade, all products
Road vehicles
Non ferrous metals Miscellaneous Special machinery
Non-metallic mineral manufacturing
Power-generating
manufactures
machinery
Other transport
Electrical machinery
Tourism
equipment
Transportation
Tobacco and
manufactures
4
Cereals
Articles of apparel
and clothing
Paper and articles of
paper pulp
2
Textile
= 1 billion US Dollar
0
Losers in
declining markets
Achievers in adversity
-2
-10
-5
0
5
10
15
20
25
30
35
Annual average change in world market share of Turkey (%) 2000-2005
*Öz, Foreign Trade As An Economic Driver, The Global Competitiveness Report Turkey 2006, REF, Istanbul, November 2006
21
Gündüz Ulusoy
CHAMPIONS IN 2000-2005 PERIOD
2005
(million US
Dollars)
World
Rank
(2005)
World
Share
(2005)
World
Share
Increase
(2000-05)
Average
Annual
Increase
(2000-05)
World
Average
Annual
Increase
(2000-05)
676 - IRON, STEEL BAR,SHAPES ETC.
3,198
4
6.8
9.4
25.6
14.8
761 - TELEVISION RECEIVERS ETC.
2,934
5
5.1
9.6
28.7
17.5
057 - FRUIT, NUTS EXCLUDING OIL NUTS
2,470
5
4.9
8.6
19.7
10.2
658 - TEXTILE ARTICLES NES
1,952
4
6.8
2.8
14.4
11.3
775 - DOM. ELECTR, NON-ELEC. EQUIPT
1,663
11
2.7
19.7
33.2
11.3
793 - SHIP, BOAT, FLOATING STRUCTURE
1,241
12
3.3
37.3
60.0
16.6
661 - LIME, CEMENT, CONSTR. MATERIAL
1,186
3
6.3
14.4
26.2
10.3
897 - GOLD, SILVERWARE, JEWL NES
1,170
11
3.8
12.5
24.3
10.5
679 - TUBES, PIPES, ETC. IRON,STEEL
920
18
1.9
10.5
29.2
16.9
783 - ROAD MOTOR VEHICLES NES
892
11
3.7
14.9
26.9
10.4
713 - INTERNAL COMBUS PISTON ENGINE
876
21
0.8
16.2
27.4
9.7
672 - INGOTS ETC. IRON OR STEEL
819
10
3.2
10.7
29.5
17.0
058 - FRUIT, PRESERVED, PREPARED
810
2
7.9
13.6
25.9
10.8
699 - MANUFACTURES BASE METAL, NES
699
24
0.8
22.8
34.9
9.9
893 - ARTICLES, NES, OF PLASTICS
677
26
0.8
16.8
28.2
9.7
625 - RUBBER TYRES, TUBES, ETC.
641
18
1.5
7.9
19.3
10.6
812 - PLUMBNG, SANITARY, EQPT. ETC
590
4
5.4
19.4
39.2
16.5
691 - METALLIC STRUCTURES, NES
551
15
2.5
24.2
40.1
12.8
PRODUCT GROUP
*Öz, Foreign Trade As An Economic Driver, The Global Competitiveness Report Turkey 2006, REF, Istanbul, November 2006
22
Gündüz Ulusoy
ACHIEVERS IN ADVERSITY IN
2000-2005 PERIOD
2005 (million
US Dollars)
World Rank
(2005)
World
Share
(2005)
World
Share
Increase
(2000-05)
Average
Annual
Increase
(2000-05)
World Average
Annual
Increase
(2000-05)
845 - OTHER.TEXTILE APPAREL, NES
4,387
4
4.6
5.7
13.0
6.9
781 - PASS. MOTOR VEHCLS.EXCL. BUS
4,373
17
0.9
35.4
47.4
8.8
842 - WOMEN, GIRL CLOTHNG, XKNIT
2,817
6
4.2
5.3
13.8
8.0
782 - GOODS, SPCL TRANSPORT VEH
2,500
10
2.8
78.7
94.6
8.9
841 - MENS, BOYS CLOTHNG, X-KNIT
1,829
6
3.7
11.1
15.7
4.1
784 - PARTS, TRACTORS, MOTOR VEH
1,508
23
0.7
15.9
27.0
9.6
844 - WOMEN, GIRLS CLOTHING KNIT
1,304
3
5.6
1.2
8.1
6.8
653 - FABRICS, MAN-MADE FIBRES
1,097
8
4.6
17.8
13.8
-3.4
651 - TEXTILE YARN
1,010
13
2.8
4.2
6.1
1.9
652 - COTTON FABRICS, WOVEN
871
9
3.9
12.2
16.3
3.7
846 - CLOTHING ACCESSRS, FABRIC
781
7
5.0
13.6
19.6
5.3
773 - ELECTR DISTRIBT. EQPT. NES
727
23
1.2
5.2
12.5
6.9
659 - FLOOR COVERINGS, ETC.
670
6
6.3
11.9
18.0
5.4
684 - ALUMINIUM
612
28
0.8
14.1
24.4
9.0
655 - KNIT. CROCHET. FABRIC, NES
571
8
4.1
18.5
22.0
3.0
054 - VEGETABLES
507
14
1.6
5.4
14.5
8.6
PRODUCT GROUP
*Öz, Foreign Trade As An Economic Driver, The Global Competitiveness Report Turkey 2006, REF, Istanbul, November 2006
23
Gündüz Ulusoy
CHANGES IN THE EXPORT MIX*
Percent of
Exports
Natural
Resources
1980
1990
2000
2005
73.6
30.4
16.6
11.5
80
70
60
Low
Technology
20.9
55.2
55.4
45.6
50
40
30
Mid Level
Technology
4.7
10.0
16.7
29.7
20
10
0
High
Technology
0.8
4.3
11.3
13.2
1980
1990
Nat.Res.
Low Tech
2000
Mid. Tech
2005
High Tech
*Ultav, Panel Presentation at the National Innovation Initiative Meeting, Ankara, October, 2006
24
Gündüz Ulusoy
EU MARKET SHARE OF TURKISH
COMPANIES IN CONSUMER ELECTRONICS*
Market
Share (%) 1995
2000
2005
60
50
Color TVs
5
25
55
40
Digital
Devices
1
5
15
30
White
Goods
3
Embedded
Software
0
20
10
18
10
0
0
1995
9
Color TVs
2000
2005
Dig. Dev.
W. Goods
Emb.SW
*Ultav, Panel Presentation at the National Innovation Initiative Meeting, Ankara, October, 2006
25
Gündüz Ulusoy
COMPETITIVENESS PROFILE OF
TURKEY
PILLARS OF COMPETITIVENESS*
BASIC REQUIREMENTS
Key for
•Institutions
•Infrastructure
•Macroeconomy
•Health and Primary Education
factor-driven
economies
EFFICIENCY ENHANCERS
Key for
•Higher Education and Training
•Market Efficiency (goods, labour, financial)
•Technological Readiness
INNOVATION & SOPHISTICATIONS FACTORS
efficiency-driven
economies
Key for
innovation-driven
•Business Sophistication
economies
•Innovation
*The Global Competitiveness Report 2006-2007, World Competitiveness Forum, Geneva, 2006.
27
Gündüz Ulusoy
GLOBAL COMPETITIVENESS INDEX
RANKING
Country
GCI
GCI
GCI
2006 Rank
2006 Score
2005 Rank
Changes 2005-2006
Switzerland
1
5,81
4

3
Finland
2
5,76
2

0
Sweden
3
5,74
7

4
Denmark
4
5,70
3

-1
Singapore
5
5,63
5

0
United States
6
5,61
1

-5
Japan
7
5,60
10

3
Germany
8
5,58
6

-2
Lithuania
40
4,53
34

-6
Hungary
41
4,52
35

-6
Italy
42
4,46
38

-4
Greece
47
4,33
47

0
Poland
48
4,30
43

-5
Croatia
51
4,26
64

13
Turkey
59
4,14
71

12
Romania
68
4,02
67

-1
Bulgaria
72
3,96
61

-11
28
Gündüz Ulusoy
LIST OF COUNTRIES IN EACH STAGE OF
DEVELOPMENT*
STAGE 1
TRANSITION
STAGE 1
2
STAGE 2
TRANSITION
STAGE 2
3
STAGE 3
GDPpc US$
<2,000
GDPpc US$
2,000 – 3,000
GDPpc US$
3,000 – 9,000
GDPpc US$
9,000 – 17,000
GDPpc US$
> 17,000
Angola
Albania
Algeria
Bahrain
United States
Armenia
Bosnia and Herze.
Argentina
Barbados
United Kingdom
Azerbaijan
Colombia
Brazil
Czech Republic
Belgium
China
Ecuador
Bulgaria
Estonia
Canada
Egypt
El Salvador
Chile
Hungary
Denmark
Georgia
Jordan
Croatia
Korea
Finland
India
Macedonia, FYR
Malaysia
Malta
France
Indonesia
Peru
Mexico
Taiwan
Germany
Morocco
Suriname
Poland
Trinidad & Tobago
Greece
Nigeria
Thailand
Romania
Ireland
Pakistan
Tunisia
Russian Federation
Israel
Philippines
South Africa
Spain
Vietnam
Turkey
Sweden
*The Global Competitiveness Report 2006-2007, World Competitiveness Forum, Geneva, 2006.
29
Gündüz Ulusoy
RELATIONSHIP BETWEEN GDP PER
CAPITA ($) (PPP) AND GCI SCORE
6,0
Sw itzerland
Sw eden
Singapore
5,5
GCI Score 2006
France
Estonia
5,0
Belgium
USA
Iceland
Austria
Ireland
Czech Republic
Spain
Slovenia
Italy
Greece
Latvia
4,5
Poland
TURKEY
Brazil
4,0
Romania
Bulgaria
Macedonia
3,5
3,0
0
10.000
20.000
30.000
GDP per capita ($) (PPP)
30
40.000
50.000
R2 = 0,7446
Gündüz Ulusoy
TURKEY IN RELATION TO EU 25
Institutions
7
6
Innovation
Infrastructure
5
4
3
2
Business sophistication
1
Macroeconom y
0
Technological readiness
Health and prim ary education
Market efficiency
TR score
Higher education and training
EU 25 score
EU Accession 10 score
*Öz, The Investment Environment, The Global Competitiveness Report Turkey 2006, REF, Istanbul, November 2006
31
Gündüz Ulusoy
TURKEY IN RELATION TO NEW MEMBERS
Institutions
7
6
Innovation
Infrastructure
5
4
3
2
Business sophistication
Macroeconom y
1
0
Technological readiness
Health and prim ary education
Market efficiency
TR score
Higher education and training
Bulgaria score
Rom ania score
*Öz, The Investment Environment, The Global Competitiveness Report Turkey 2006, REF, Istanbul, November 2006
32
Gündüz Ulusoy
EU-10 IN 1996 AND 2006
*Öz, The Investment Environment, The Global Competitiveness Report Turkey 2006, REF, Istanbul, November 2006
33
Gündüz Ulusoy
GCI AND INNOVATION
RELATIONSHIP BETWEEN INNOVATION
SCORE AND GCI SCORE
6,0
Denmark Sw eden
UK
GCI Score 2006
5,5
Japan
Iceland
Luxembourg
Estonia
5,0
Sw itzerland
Germany
Ireland
Spain
Czech Republic
Latvia
4,5
Cyprus
Italy
Hungary
TURKEY
Brazil
Bulgaria
Romania
Macedonia
4,0
3,5
3,0
2,0
2,5
3,0
3,5
4,0
4,5
Innovation Score
35
5,0
5,5
6,0
6,5
R2 = 0,8885
Gündüz Ulusoy
RELATIONSHIP BETWEEN R&D EXPENDITURE AS
A PERCENTAGE OF GDP AND GCI SCORE
6,0
Finland
Singapore Sw itzerland
5,5
Ireland
GCI Score 2006
Estonia
Austria
Iceland
France
5,0
Spain
Slovakia
4,5
Japan Sw eden
UK
Belgium
Portugal
Czech Republic
Italy
Poland
Croatia
TURKEY
Romania
4,0
Brazil
Bulgaria
Macedonia
3,5
Cyprus
3,0
0,0
0,5
1,0
1,5
2,0
2,5
3,0
R&D Expenditure as a Percentage of GDP
36
3,5
4,0
R2 = 0,7802
Gündüz Ulusoy
RELATIONSHIP BETWEEN
RESEARCHERS IN R&D AND GCI SCORE
6,0
Denmark
Sw itzerland
Netherlands
5,5
GCI Score 2006
Iceland
France
Luxembourg
Estonia
5,0
Finland
Japan
Germany
Austria
Sw eden
Czech Republic
Spain
Slovenia
Lithuania
Poland
TURKEY
Romania
Brazil
Bulgaria
Macedonia
Malta
4,5
4,0
3,5
3,0
0
1000
2000
3000
4000
5000
6000
Researchers in R&D (per m illion people)
37
7000
8000
R2 = 0,7199
Gündüz Ulusoy
BUSINESS COMPETITIVENESS INDEX (BCI)
BUSINESS COMPETITIVENESS INDEX
BCI RANKING
COUNTRY
QUALITY OF THE
NATIONAL
BUSINESS
ENVIRONMENT
COMPANY
OPERATIONS
AND STRATEGY
2006
2005
2006
2005
2006
2005
UNITED STATES
1
1
1
1
1
1
GERMANY
2
2
2
3
2
2
FINLAND
3
3
3
2
8
8
SWITZERLAND
4
8
4
8
4
6
DENMARK
5
4
6
4
6
5
NETHERLANDS
6
7
5
7
7
9
CYPRUS
45
34
43
34
67
47
TURKEY
46
49
46
49
41
38
GREECE
49
45
47
47
53
46
POLAND
53
44
53
46
49
40
BRAZIL
55
51
58
53
38
34
CHINA
64
54
65
54
69
53
39
Gündüz Ulusoy
GCI RANK 2006 vs. BCI RANK 2006
90
Macedonia
80
GCI Rank 2006
70
Brazil
TURKEY
60
Cyprus
50
Portugal
30
Slovenia
Estonia
Austria
20
UK
10
Ireland
France
Bulgaria
Croatia
Poland
Italy
40
Romania
Latvia
Spain
Singapore
0
0
10
20
30
40
50
BCI Rank 2006
40
60
70
80
90
R2 = 0,9502
Gündüz Ulusoy
SOME OBSERVATIONS
CONCERNING
MANUFACTURING
INDUSTRIES IN TURKEY
EMPIRICAL STUDIES OVER A DECADE
 The observations and remarks following will be
based on several empirical studies distributed
over a decade starting in 1997.
 Automotive
 Cement
 Electronics
 White goods’ suppliers
 Automotive suppliers (technology management)
 Electronics (NPD capability)
 Machine building
 Innovation in manufacturing industries (2004,2006)
 Innovation models in manufacturing and innovation
networks
42
Gündüz Ulusoy
RANKING OF PRACTICES IN RELATION TO THEIR
IMPACT ON THE SUCCESS OF THE COMPANY*
*Ulusoy, Moving Forward, TÜSİAD Report, Istanbul, 2003.
Ulusoy, İkiz, "Benchmarking best manufacturing practices: a study into four sectors
of the Turkish industry", International Journal of Operations and Production Management,
21, 1020-1043, 2001.
43
Gündüz Ulusoy
RANKING OF OUTCOMES IN RELATION TO THEIR
IMPACT ON THE SUCCESS OF THE COMPANY*
5
4,5
4
3,5
3
2,5
2
1,5
1
0,5
0
4,6
4,2
3,3
3,2
2,9
2,7 2,7 2,6
4,2
4,1
4
3,8
2,7
3,4
3,3
3
2,9
2,6
2,4
2,6
2,3
2,1
2,8
2,2
1,7
Electronics
Cost
Automotive
Quality
Cement
Flexibility
Appliances
p&c suppliers
Timeliness
Average
Innovativeness
*Ulusoy, Moving Forward, TÜSİAD Report, Istanbul, 2003.
Ulusoy, İkiz, "Benchmarking best manufacturing practices: a study into four sectors
of the Turkish industry", International Journal of Operations and Production Management,
21, 1020-1043, 2001.
44
Gündüz Ulusoy
COMPETITIVENESS STRATEGIES FOR
MANUFACTURING FIRMS IN TURKEY*
 In general, the manufacturing industry in Turkey had based its
competitiveness strategy on low price rather than product
differentiation.
 But, rapid design change and rapid new product introduction
were within the first five competitive priorities of all sectors
involved.
 Furthermore, decreasing the new product development time was
within the first five manufacturing objectives.
 The manufacturing firms were fully aware that in order to survive
in the market process and product quality are necessary
requirements.
 There were areas open to improvement in quality issues of which
companies seem to be aware. Consistent quality level was
designated as the highest competitive priority.
*Ulusoy, Moving Forward, TÜSİAD Report, Istanbul, 2003.
Ulusoy, İkiz, "Benchmarking best manufacturing practices: a study into four sectors
of the Turkish industry", International Journal of Operations and Production Management,
21, 1020-1043, 2001.
45
Gündüz Ulusoy
COMPETITIVENESS STRATEGIES FOR
MANUFACTURING FIRMS IN TURKEY*
In line with these observations Total
Quality Management came out to be the
most popular action plan.
Based on these observations we can
conclude that the Turkish manufacturing
industry will increase the weight of
product differentiation strategy against
the low cost strategy within its mixed
strategy.
*Ulusoy, Moving Forward, TÜSİAD Report, Istanbul, 2003.
Ulusoy, İkiz, "Benchmarking best manufacturing practices: a study into four sectors
of the Turkish industry", International Journal of Operations and Production Management,
21, 1020-1043, 2001.
46
Gündüz Ulusoy
COMPETITIVENESS STRATEGIES FOR
MANUFACTURING FIRMS IN TURKEY
 The agenda of the Turkish manufacturing industry
is to be able to manufacture quality goods at low
cost and to increase their market share.
 Firms also aim at introducing products with high
added value in order to increase their
profitability.
 These strategies are consistent with the
increasing emphasis on product differentiation
and the increasing importance of new product
development.
47
Gündüz Ulusoy
COMPETITIVENESS
At the macro level, competitiveness in
Turkey suffers from three weaknesses:
 Informal economy
 Macroeconomic and political instability
 Governmental ownership
Nonoperational profits were high.
48
Gündüz Ulusoy
A TWO-TRACK ECONOMY*
Traditional
Modern
Average
Fast moving consumer goods
22
75
29
Residential construction
31
56
41
Dairy processing
27
93
50
Auto parts
22
89
68
Confectionary
18
69
35
Steel
28
91
76
SECTOR
Labor Productivity USA=100
*Baser, Farrel, Meen, Turkey’s quest for stable growth, McKinsey Quarterly, 74-95, Special Edition, 2003
49
Gündüz Ulusoy
PRODUCTIVITY*





In the 11 sectors covered the labor productivity has
been found to be at the 40% level of the labor
productivity in USA.
In manufacturing sector labor productivity is 64%
of that in USA.
In steel production labor productivity is 76% of that
in USA.
In service sector labor productivity is 33% of that
in USA.
In infrastructure services sector labor productivity
is 48% of that in USA.
 In cell phone services sector labor productivity is 109%
of that in USA.
 In electricity distribution sector labor productivity is 21%
of that in USA.
*Baser, Farrel, Meen, Turkey’s quest for stable growth, McKinsey Quarterly, 74-95, Special Edition, 2003
Kaynak: MGI
50
Gündüz Ulusoy
EVOLUTION OF MANUFACTURING
INDUSTRIES IN THE LAST DECADE
 Quality has preserved its position as the number
one competitive priority through the last 10
years.
 The same holds true for TQM as the most widely
employed action plan.
 Good performance in CIP, JIT delivery, JIT
purchasing.
 Innovation and particularly new product
development emphasis is steadily increasing.
 Weight of the product differentiation strategy
against low cost strategy within firms’ mixed
strategy is increasing.
51
Gündüz Ulusoy
CHANGES IN COMPETITIVENESS
STRATEGY*
 Evolution of product strategy from focus on cost
to focus on differentiation through product
variety.
*Ulusoy, Yeğenoğlu, Innovation performance and competitive strategies in the Turkish manufacturing sector,
QIK 2007, pp. 907-915, New Delhi, India, February 2007
52
Gündüz Ulusoy
CHANGES IN COMPETITIVENESS
STRATEGY*
 Evolution of new product strategy from follower
in the market to first in the market.
*Ulusoy, Yeğenoğlu, Innovation performance and competitive strategies in the Turkish manufacturing sector,
QIK 2007, pp. 907-915, New Delhi, India, February 2007
53
Gündüz Ulusoy
PUBLIC SUPPORT FOR R&D AND INNOVATION
Million YTL
PUBLIC SUBSIDIES FOR THE SCIENCE, TECHNOLOGY AND
INNOVATION ACTIVITIES OF THE PRIVATE SECTOR
Year
Current
Prices
2005 Prices
55
Gündüz Ulusoy
Number of Researchers
PUBLIC SUBSIDY TO RESEARCHERS
Year
56
Gündüz Ulusoy
Million YTL
DIRECT PUBLIC SUBSIDIES TO SCIENCE,
TECHNOLOGY AND INNOVATION
Year
2005 Prices
57
Current Prices
Gündüz Ulusoy
APPLICATIONS AND REGISTRATION
FOR UTILITY MODELS
2500
2424
1896
Number of Utility Models
2000
1665
1479
1500
1206
914
1000
964
631
454
500
223
183
160
145
376
141
113
678
704
317
290
257
0
1996
1997
1998
1999
2000
Application
58
2001
2002
2003
2004
2005
2006
Registration
Gündüz Ulusoy
PATENT APPLICATIONS
6000
5165
Number of Applications
5000
4000
3433
3020
3000
2483
3156
1690
1531
902
1520
1000
713
170
189
2262
2877
2744
2000
3461
3214
2276
1152
1460
1577
1328
203
207
276
277
337
662
414
0
1996
2526
1874
490
1995
4075
1997
1998
1999
2000
National
59
2001
Foreign
2002
2003
685
2004
935
2005
1090
2006
Total
Gündüz Ulusoy
A PERSISTENT FAULT LINE
A persistent fault line among the firms is
the lack of collaboration.
There is a distinct need for Turkish firms
to establish networks and clusters.
The Turkish firms need to become part of
the global supply chains.*
*Ulusoy, Moving Forward, TÜSİAD Report, Istanbul, 2003.
60
Gündüz Ulusoy
WHAT NEXT?
 Continuation of developing indigenous
technology and products at increasing
intensity.
A strong wave of innovative activities is
expected.
Work on overcoming the barriers to
collaboration of the Turkish firms.
61
Gündüz Ulusoy
AN ASSESSMENT OF OPERATIONS
MANAGEMENT IN TURKEY
A BRIEF HISTORY OF OPERATIONS
RESEARCH IN TURKEY
 The first OR unit in Turkey was established in the
General Staff of Armed Forces under the title
Scientific Consultation Directorate on August 19,
1954. Mainly reserve officers with suitable
background served in this unit. Later in 1958 the
R&D Laboratories in the Air Force were attached
to this unit. It continued to serve in the General
Staff of Armed Forces until 1970 when it was
transferred to the Ministry of Defence.
 In 1973, another unit, which was first called
Defense Research Directorate and then
Armament and Defense Directorate, was
established in the General Staff of Armed Forces.
63
Gündüz Ulusoy
A BRIEF HISTORY OF OPERATIONS
RESEARCH IN TURKEY
 In the civilian sector, the first attempt took place
on September 1, 1965. The Operations Research
Unit was founded within the Scientific and
Technical Research Council of Turkey and
continued to operate on the campus of Middle
East Technical University until 1973. In 1973, it
was transferred as a Unit to the Marmara
Scientific and Industrial Research Institute in
Gebze, Kocaeli. Later in 1992 it was dissolved.
64
Gündüz Ulusoy
A BRIEF HISTORY OF OPERATIONS
RESEARCH IN TURKEY
 The first course on OR was offered in the Faculty
of Mechanical Engineering at Istanbul Technical
University in 1962-1963 academic year. Later two
courses were initiated at the Middle East
Technical University in 1964-1965 in the
Mathematics Department. A graduate degree
program was established in the same Department
starting in 1965-1966 academic year.
 Later OR courses became part of the fundamental
course work in the Industrial Engineering
Departments and Management Departments.
Besides industrial engineering and management
fields, OR courses are also included in the
mathematics, statistics, econometrics, and
regional and city planning curricula among
others.
65
Gündüz Ulusoy
A BRIEF HISTORY OF OPERATIONS
RESEARCH IN TURKEY
 Operations Research Association was established
in 1975 and organized the first Operations
Research National Conference the same year.
Starting with the 15th National Congress in July
1993 the title of the Conference was changed to
Operations Research and Industrial Engineering.
National Conference. The 27th OR/IE National
Conference will convene in İzmir during July 2-4,
2007.
66
Gündüz Ulusoy
INDUSTRIAL ENGINEERING AND
MANAGEMENT DEPARTMENTS IN TURKEY
Num ber of Departm ents in Turkey 2006
80
70
60
50
40
30
20
10
0
Number of IE undergraduates:
app. 9.200.
Number of Management undergraduates:
app. 41.600.
Industrial Eng
Management
Public
Private
Placem ent 2006
12000
Number
Capacity
Placement
Public
23
1464
1464
Remaining
Capacity
0
Private
17
1172
899
273
4000
Public
51
8892
8850
42
2000
Management Private
24
2315
1349
966
Industrial
Eng.
10000
8000
6000
0
Industrial Eng.
Management
Public
67
Private
Gündüz Ulusoy
UNIVERSITY PLACEMENT TEST BASE ACCEPTANCE
SCORE (Normalized over 100)
100
99
98
97
96
95
2000
2002
2004
2006
2000
2002
Boğaziçi
Industrial Eng.
2004
2006
Bilkent
Electrical and Electronic Eng.
68
2000
2002
2004
2006
ODTÜ
Computer Eng.
Gündüz Ulusoy
UNIVERSITY PLACEMENT TEST BASE ACCEPTANCE
SCORE (Normalized over 100)
100
99
98
97
96
95
94
93
92
91
90
2000
2002
2004
2006
2000
2002
Boğaziçi
2004
2006
2000
Bilkent
Management
Economics
69
2002
2004
2006
ODTÜ
International Relations
Gündüz Ulusoy
JOURNAL PUBLICATIONS BY
TURKISH RESEARCHERS (1990-2006)
JOURNAL
06
05
04
03
02
01
00
99
98
97
96
95
94
93
92
91
90
International Journal
of Production
Economics
5
3
6
2
5
2
5
7
9
2
3
0
1
2
2
3
0
57
International Journal
of Production
Research
9
13
7
9
11
9
7
4
5
2
3
3
2
3
2
0
1
90
European Journal of
Operational Research
20
9
7
11
5
14
10
12
12
6
10
2
9
1
2
3
1
134
2
5
3
4
3
3
5
3
3
5
1
1
0
0
0
0
1
39
0
1
1
1
2
1
1
0
1
0
1
2
2
0
0
0
1
14
1
1
1
4
2
1
1
1
0
2
0
1
0
0
0
1
0
16
37
32
25
31
28
30
29
27
30
17
18
9
14
6
6
7
4
350
IIE Transactions
Management Science
Operations Research
TOTAL
70
TOTAL
Gündüz Ulusoy
JOURNAL PUBLICATIONS BY
TURKISH RESEARCHERS (1990-2006)
JOURNAL
NO OF
PUBLICATIONS
(1990-2006)
International Journal of Operations &
Production Management
5
Journal of Operations Management
0
Manufacturing and Service Operations
Management
4
Production and Operations Management
1
Production and Inventory Management
Journal
2
Journal of Supply Chain Management
1
Decision Sciences
1
Interfaces
5
Decision Support Systems
5
Strategic Management Journal
0
71
Gündüz Ulusoy
SOME OBSERVATIONS AND COMMENTS
 The papers published are concentrated in a small
number of journals all of them IEOR oriented.
 We observe very few empirical work among the
publications. OM displays some similarities to
medical practice. Observations lead to models
and theories. We lack in Turkey empirical
research. Not much operational data is collected
in Turkey.
 Only very few case studies are generated by the
Turkish researchers. Although few in number still
the quality of work is established in the number
of prizes given to these case studies by
INFORMS.
 There is a lack of university-industry cooperation
and collaboration. This has some serious
repercussions.
72
Gündüz Ulusoy
SOME OBSERVATIONS AND COMMENTS
 It is important in this phase of development that
Turkish researchers concentrate on solving
problems from practice. This implies doing more
joint work with the industry. There seems to be a
positive trend in this direction. This might be
more rewarding than incremental improvements
in methodologies well developed already.
 In the selection of sectors a good guideline can
be the productivity figures cited earlier.
 One can easily observe that the number of
publications in collaborationwith researchers
based outside Turkey is small – mostly one’s PhD
advisor. International joint work is needed not
only to increase productivity but also for bringing
Turkish researchers into the kitchen of events.
73
Gündüz Ulusoy
SOME OBSERVATIONS AND COMMENTS
 Collaboration among universities in Turkey is
weak as well.
 The fact that FDI in Turkey is steadily increasing
can be seen as an opportunity to further improve
OM practice here.
 OM has a strong social science component. In
Turkey I have not made any mentionable
observation of cooperation between OR/OM
researchers and social scientists.
 Establishing strong relationships with social
scientists is not only needed for interdisciplinary
research but there is a lot to be learnt from them
in terms of conducting empirical research.
74
Gündüz Ulusoy
LOCAL GOVERNMENTS - CONSTRUCTION
 Looking to the urban population ratio in Turkey
and recalling that in advanced economies it is
above 90%, it is obvious that Turkey has a long
way to go. Urbanization is an important problem
needing the attention of experts with OM
background. At this point in time there seems to
be only very limited interest in this issue in
Turkey and that mainly around urban
transporation.
 Local governments need all sorts of guidance,
which the OM people are capable of providing.
 Construction is one of the internationally more
competitive sectors in Turkey but with OM weakly
represented in the planning and operation of this
sector.
75
Gündüz Ulusoy
TECHNOLOGY AND INNOVATION
MANAGEMENT
Interest and need for technology and
innovation management is growing in
practice in Turkey. This is closely related
to the increasing activities in Turkey for
the development of indigenous
technology.
The managers are not in a position to
pinpoint their needs exactly. They need to
be guided by OM practitioners.
76
Gündüz Ulusoy
Thank you...