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Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Welcome to Sakosa
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Program
08:30 Depart from Istanbul
10:00 Arrival to Kentsa (Argesa Conference Room)Coffe - Presentations
10: 45 Moving To Sakosa Site
11:00 Site Tour Starts at Sakosa
12:00 Lunch (Kentsa Social Club)
13:00 Depart from Kentsa to Istanbul
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Sabancı Holding
Sectors:
Tire, Tire Reinforcement, AutomotiveBanking and InsuranceChemistryRetailingFoodCementTextile
Joint Ventures with:
BridgestoneDuPontBekaert
Philip MorrisToyota
CarrefourHeidelberg ZementInternational Paper
Banque Nationale de Paris Dresdner Bank
Turnover: USD 11 billionEmployment: 35,000
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Kentsa Introductory Film (5 min.)
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Road To ExcellenceRoad To Excellence in Polyester Tire Reinforcement
Presentation at Knowledge Economic Forum IV
March 24, 2005İzmit, Turkey
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Contents
Tire Industry
Tire Reinforcement Materials
Kentsa serving to tire industry...
Sakosa Introduction
Innovation and DevelopmentNew Product Development
Respect To Environment (reaching to benchmark level)
Culture and Training
Aligning Company and Employee Performance
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Tire Industry
Types of Tires:
Auto Light Truck Truck/Bus Others
Tire Markets:
Vehicle Producers (OE)
Replacement Buyers
Tire Technology:
Radial
Cross-Ply
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Tire Industry
• A global business. Big 5 manufacturers produce around 70% of world’s demand
• Very high technical standartsApproval times for a new product take around 1.5 year
• Turkey, a critical production centre to Greater Europe (Europe, Middle East, Africa)
• PETLASPETLAS
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Tire Reinforcement Materials
A typical radial tire for automobiles is reinfoced by .....
Steel
Fabric combinations of• Polyester,• Polyamide,• Viscose
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Sabancı Holding serving to Tire Industry
Holding’s Strategic Business Unit:
Tire, TireReinforcement & Automotive
Location: Kentsa Industrial Site, where there is one tire manufacturer, three reinforcement material producer factories and one co-generator plant.
Focus of this site visit: Sakosa, one of the three tire reinforcement material producer plants
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Kentsa Serving To Tire Industry ...
Produces TiresJV with Bridgestone
Produces Nylon Yarn and FabricJV with Dupont
Produces Steel CordJV with Bekaert
Power & Utilities Co-generator
ANKARA
İSTANBUL
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
What does Sakosa Produce?
HMLS polyester yarn and Fabric made of this yarn
to be used as reinforcement material in tires
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Sakosa
Offices
Yarn Production
Fabric Production
Special Treatment To Fabric
Utilities
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Production Flow of Sakosa
Yarn Production
Weaving
TwistingTreatment to
Fabric
PET ChipPET Chip
Fabric for Tire Fabric
for Tire
High Modulus Low Shrinkage (HMLS)Polyester yarn
High Modulus Low Shrinkage (HMLS)Polyester yarn
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Sakosa Highlights
Started production in year 2000 as a JV between KoSa (Invista) (USA) and Sabancı Holding.
Became 100% Sabancı company at the end of 2001.
Currently:
300 employees
A revenue of 63 million Euros
Exports 80% of its production
Number One HMLS polyester fabric supplier in Greater Europe
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Strengths and Opportunities
Strengths
Modern technology Increasing demand to
product Integrated facility Efficient, young and
dynamic workforce
Opportunities
Joint development requests from global tire manufacturers
Internationalization
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Customers of Sakosa
Number One HMLS polyester fabric supplier in Greater EuropeNumber One HMLS polyester fabric supplier in Greater Europe
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Innovation and Learning in Sakosa
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
New Product Development
A TECHNOLOGY DRIVEN MANUFACTURING PROCESS;
• ELIMINATES ONE EXTRA STEP IN PRODUCTION (COST EFFECTIVENESS)
• IMPROVED YARN PHYSICAL PROPERTIES
• MORE HOMOGENITY AT BASIC PROPERTIES
• EXCEEDING CUSTOMER EXPECTATIONS
• HIGH PERFORMANCE AT CUSTOMERS’ MILLS
• HIGH VOLUME PRODUCTION CAPABILITY
ACHIEVED BY;
• IMPROVED UP-STREAM PROCESS,
• INNOVATED HIGH CAPACITY POLYMER PUMPS
• IMPROVED YARN PATH ALIGNMENT
• INNOVATED TAKE-UP MECHANIZATION
• INNOVATED WINDER OPERATING PROGRAM
A new type of yarn (characterised by thickness: 2200 dtex) is developed by Sakosa
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
New Product Development (..contd)
EXT. FEED HOPPER
EXTRUDER
MANIFOLD
DOWBOX
QUENCH
DRAWSTAND
WINDER
SSPSSP
HMLSHMLS
Reactor-A
CrystallizerFeed Hopper
Crystallizer
Extruder FeedHopper 1 & 3
SILO
Reactor--B
Extruder FeedHopper 2 & 4
Drying Silo
Reactor-A
CrystallizerFeed Hopper
Crystallizer
Extruder FeedHopper 1 & 3
SILO
Reactor--B
Extruder FeedHopper 2 & 4
Drying Silo
SAKOSA YARN PROCESS
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Respect To Environment
During ISO 14001 certification process, Sakosa’s 25 different applications has been selected as benchmark level best practices.
ISO 14001 CERTIFICATION PROCESS AT SAKOSA
WHAT : ISO 14001 ENVIRONMENTAL MANAGEMENT SYSTEM
WAY : TO MANAGE ALL THE ENVIRONMENTAL ACTIVITIES SYSTEMATICALLY
WHEN : IN BETWEEN OCTOBER 2003 AND MAY 2004
WHERE : AT SAKOSA MANUFACTURING PLANT, IZMIT
HOW : THROUGHOUT A CERTIFICATION PROCESS BY A THIRD PARTY CERTIFICATION BODY
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Respect To Environment
CERTIFICATION PROCESS;
WITHOUT ANY NONCONFORMITY
COMPLETED IN HALF OF THE AVERAGE COMPLETION TIME
SAKOSA’S 25 DIFFERENT AREAS HAS BEEN SELECTED AS “BEST PRACTICES”
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Respect To Environment
KEY SUCCESS FACTORS;
• COMMITMENT AND INVOLVEMENT OF TOP MANAGEMENT
• PARTICIPATION OF ALL PROCESS OWNERS
• EFFECTIVE TEAMWORK
• OWNERSHIP AND ENCOURAGEMENT OF EMPLOYEES
• USING OF BENCHMARKING AS A LEARNING TOOL
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Respect To Environment
SOME HIGHLIGHTS OF SAKOSA’S BEST PRACTICES;
DEPLOYMENT OF ENVIRONMENTAL ISSUES AS A STRATEGIC TARGET YEARLY BASSIS
MANAGEMENT OF CERTIFICATION PROCESS
CONTINUOUS IMPROVEMENT PROJECTS FOR SAVING THE NATURAL RESOURCES
EFFECTIVE TRAINING PROGRAMS, WORKSHOPS, EXTERNAL VISIT AND REWARDING ACTIVITIES
PLANNED AND SYSTEMATIC PROCESS COMPARISON AND BENCHMARKING OF “ESHA” SYSTEMS
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Company Culture
In 2000, a joint study with Sabancı University had been realized to determine corporate culture, and hence to take actions so as to reach the targeted culture.
Strategic Choices•Strategy•Objectives•Vision
•Human Resource Capability•Competencies
•Component Tasks•Work Flows/ Processes
•Strategic Grouping •Formal Linking•Rewards•I nformation systems•HR Management Systems•Career Systems
•Norms, Values•Communication Network
•I nformal Roles•I nformal Power
•Norms, Values•Communication Network
•I nformal Roles•I nformal Power
Executive Leadership•Competencies•Demography•Group Process
CONGRUENCE MODEL
People Culture
Formal Organi-zation
Critical Tasks
COMPANY CULTURE SURVEY
RESULTS (DEFINED)
BEHAVIOURAL ATTRI BUTES
PERFORMANCE GAPS• ACTUAL PERFORMANCE• EXPECTED PERFORMANCE
COMPANY CULTURE SURVEY
RESULTS (DEFINED)
BEHAVIOURAL ATTRI BUTES
PERFORMANCE GAPS• ACTUAL PERFORMANCE• EXPECTED PERFORMANCE
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Company Culture (...contd)
GROUP ORI ENTED (COLLECTI VI ST)• Team work is essantial. • Everyone shares the succeses and
failures of the company.• Social relations between members ar
strong (even out side of the company)
HI ERARCHI CAL• Hierarchical differences are strong and
essantial.• Superiors has extra preferences then
subordinates.• Subordinates do not question decisions
of the superiors.
I NDI VI DUALIST• Employees tries to outstand by
themselves. • Employees compete with each other.• Private and proffesional life of the
employees are being seperated.
EGALI TARI AN• Superiors percieves their subordinates as
individuals and evaluate them equally.• Knowledge and experience are more
important then hierarchical position.
% 42
% 31
% 14
% 13
These results are in line with Sakosa Management Company Cultureexpectation therefore collectivist and egalitarian attributes are being
underlined with training programs.
Results of Survey:
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Training (2004)
20
,39
5
12
8
45
01,5
97
1,3
05
1,8
48
9,9
90
5,0
77
92
0
2,0
27
2,2
05
22
,31
6
13
5
39
9
64
0
15
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Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Aligning Company and Employee Performance
Targeted Profile
CompanyCulture
aCompany Strategy
Career Management
Definitons of the goals
Development Plan
Trainings
aaPerformance Evaluation
Definitons of the goals
Development Plan
Trainings
aaPerformance Evaluation
Definition of Organizational Development
Needs
DevelopmentEvaluation
X+1 X+...
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
- End of presentation -
2 minutes for your safety...
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Safety During Site Visit
There is a group number on the hand-outs given to you. Please follow your assigned guide.
During tour;– Please stay between white lines– Wear safety glasses at all times– Put your ties into your shirt– Switch off your mobile phones
– In case of losing your group, please go to meeting point (tree at the entrance of administration building)
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
You are in Group Number #
Please follow your Guide for Group #.
Your visit track will be as
shown.
During tour, please stay between white lines for your
safety
Please be at meeting point at 12:30
Meeting Meeting PointPoint
Offices
Yarn Production
Fabric Production
Special Treatment To Fabric
Warehouses
Knowledge Economic Forum IV
Site Visit on March 24th, 2004
Thank you...