In an era where speed, scale, and cost often dictate manufacturing choices, Themo has chosen a different path. Instead of joining the race for mass production, this Estonian company focuses on something rarer: thermostats that unite premium quality, responsible sourcing, and a collaborative workplace culture. Themo’s products are designed and developed in Estonia, where production still takes place today.
We interviewed Karl Jaik, Production Manager of Themo, who explained:
“From sourcing parts to final assembly, every stage of our process reflects one principle—do it well, do it responsibly, and make it last.”
While many thermostat brands import complete devices from Asia - often with limited transparency into labor conditions - Themo takes a hybrid approach. Components such as printed circuit boards (PCBs) are sourced from trusted suppliers, but plastic casings, coding, assembly, and quality control are all carried out locally in Estonia.
This model gives Themo tighter oversight, higher quality standards, and a more ethical supply chain. Every thermostat is built in a controlled, transparent environment where labor practices can be verified.
Mass production thrives on volume. In Europe, 100,000 units may qualify as mass production; in Asia, that number often exceeds a million. Themo intentionally operates below these figures. This strategy enables batch production: smaller runs, tighter checks, and volumes that match real demand.
Batch production shifts the logic from “produce first, sell later” to “sell first, produce accordingly.” Using a First In, First Out (FIFO) model, Themo builds products in line with quarterly or half-year forecasts. This avoids overproduction, lowers storage costs, and ensures customers receive freshly assembled devices.
“We usually buy PCBs and plastics from suppliers, then inspect every single part manually,” Karl explains. “We run 100% checks at every stage because we want zero mistakes. If something does slip through, we trace it back and fix the process.”
All incoming parts are visually and electronically tested before entering production. The assembly floor is split into two areas: one for back panels and another for front panels. This separation makes assembly smoother and allows easy replacement if a front panel breaks after installation.
“The product is designed in two parts for a reason,” Karl says. “It makes assembly efficient and replacement easy. For us, production is all about efficiency.”
The main distinction from mass production lies in philosophy: Themo aligns production with sales. “Mass production builds first and sells later. We use the FIFO model—first in, first out. That keeps everything balanced with demand.”
Accurate forecasting is one of the toughest parts of production planning, especially in a seasonal market where heating demand fluctuates. At Themo, forecasting is not left to sales alone. Production works hand-in-hand with sales, installation, and R&D to build realistic estimates that consider:
This team-based approach reduces both excess inventory and the risk of shortages. As a safeguard, Themo slightly over-orders materials—better to have a little extra than disappoint customers.
“Planning is definitely the hardest part,” Karl admits.
“I can’t just buy huge amounts of electronics and wait. I have to coordinate with every department all the time. That’s what makes us efficient.”
In practice, sales provides forecasts, installation reports maintenance trends, and Karl combines this input into production plans with a buffer. “I’ve run the system for less than two years, and we haven’t once run out of stock in a way that caused problems,” he says with a smile.
Collaboration runs deep at Themo. “Our structure makes it easy to talk directly with other teams. Without that communication, I couldn’t estimate anything,” Karl notes.
Despite producing thousands of thermostats a year, Themo’s assembly is largely handled by a single production specialist, with extra help added in peak seasons. Management prioritizes skill-building over repetitive tasks, encouraging employees to think critically, solve problems, and contribute to decision-making.
“In mass production, people can’t compete with robots. But in our setup, creativity and adaptability matter more,” Karl says. “Instead of just solving problems for our specialist, I let her figure them out and grow her skills. That way, she learns all the tools—not just one task.”
This philosophy keeps morale high and ensures that workers leave with stronger skills than they started. “I’m really proud that our specialist thinks independently and solves challenges herself. We’ve given her space to grow, and it shows,” Karl concludes.