Republic of the Philippines

PALOMPON INSTITUTE OF TECHNOLOGY

Palompon, Leyte

COLLEGE OF TECHNOLOGY AND ENGINEERING

HYUNDAI COMPANY

An Assessment Paper
Presented to the Faculty of
Palompon Institute of Technology
College of Technology and Engineering
Palompon, Leyte

In Partial Fulfillment of the

Requirement of the Subject
IT 324- Production Management

Presented By:
Jazztine Emman Paloma
Julie Ann Pahulayan
Janice Sablayan
Jay Loreto
 2023
HYUNDAI COMPANY

Hyundai Company Production System, is a set-up of an organization that produces

products. The Hyundai automotive industry used a mass production system to produce different
types of car and automotive products and exports their product nationwide. Today’s automobile
is the result of a large number of mass production lines established in a multitude of
manufacturing and assembly facilities throughout the world. Automotive manufacturing
engineers have learned to mass produce a highly customized product by standardizing critical
elements such as the methods by which parts are held together internally. The flow of materials
to the various line positions is carefully scheduled and controlled so that the specific part
required for a given model, color, or option list arrives at the line at the precise moment that the
partially assembled unit requiring the part has arrived along the conveyor. The exquisitely
designed production-control systems operating in the automotive and other industries make it
possible for consumers to obtain a greatly enhanced variety of products without sacrificing the
cost advantages of mass-production techniques.

Hyundai has reduced its dependence on direct labor while increasing its dependence on
production facilities by raising levels of automation and information technology in the
production process. It has also increased the importance of product development and established
unique procedures to improve the quality level during the late stages of product development.
Finally, a significant portion of the production process is outsourced to parts makers and many
outsourced parts are sub-assembled into modules before going to the final assembly line. This
has enabled Hyundai to concentrate on product development and marketing by reducing the
burden of parts production. Hyundai operates the world’s largest manufacturing facility in Ulsan,
South Korea, with an annual production capacity of 1.6 million units. The company invests more
in technology rather than manpower to make their companies more productive. This is beneficial
for both employees and Hyundai company, as it ensures that employees have enough work to
make their role viable and profitable, and prevents overworking and burnout.

When it comes to Customer Service, Hyundai Company Customer is committed to

providing excellent customer service by listening carefully and actively following up on
feedback, maintaining a clean, safe, and friendly environment, providing accurate time and cost
estimates, obtaining prior authorization, explaining all repairs, and ensuring the product is
returned in a clean and tidy condition.
 Hyundai plants were located in highly developed countries due to their nearness to the
market, transportation and facilities, and infrastructures to bring the raw materials to the firm or
to carry the finished goods to the market. The supply of raw materials is the most important
factor in plant location decisions, and transportation costs must be kept low. Basic facilities such
as schools, hospitals, housing and recreation clubs, etc. must be provided by the organization, but
most employees give preference to working the locations where all these benefits/facilities are
available outside. Government policies are also important when selecting a location for the plant.
Subsidies, Government benefits, availability of labor, suitability of climate, availability of
finance, availability of water, and competition between states or external economies of scale are
all important factors in plant location decisions. Firms should select a plant location that is nearer
to the source of manpower and should have provisions for the disposal of waste.

Hyundai considers the model location of identifying the specific location of its plant and
facilities due to the high demand for automation location to set up a new factory. There are
several ways to determine the location of the factory, one of which is to use the Factor Rating
Method Methods of Weighting Factor or Factor Rating Method. This method combines
quantitative and qualitative factors to determine the best locations for manufacturing or
automotive industries. The total Weights used in General are 1 or 100%, Specify alternative
locations, and give value to each alternate location based on important factors. Calculate the total
value for each of the alternate locations by multiplying the weight of factors determined by the
location of each alternative. Through this process, Hyundai can easily identify the right place or
location where their plant and facilities are built.

Hyundai Company uses the Design Process of Production, which involves three
processes: Design Planning, Sketch and Rendering, and Computer Aided Styling (CAS). CAS is
the process of actualizing sketches into three-dimensional formations, followed by revision and
improvement work on the detailed design. Clay Model Production is a process of building a
realistic clay model that represents the real model, allowing designers to freely express and
revise the car design. Hyundai designers combine thousands of colors and harmonize luster,
pattern, forms, and texture to create a grand new emotion that consumers can enjoy. They also
spread design features among their product lines and have a 9-10% profit margin. This
combination of quality improvement, design, and marketing has given Hyundai a clear advantage
over its industry competitors.

Hyundai Company is developing commercial vehicles to actualize higher customer

values through better performance and quality. Namyang Design Center in South Korea is
equipped with cutting-edge design facilities such as a virtual reality center, an indoor evaluation
space, CAVE systems, supercomputers, and more. The R&D Center is focused on research and
development based on three themes: safety, eco-friendliness, and customer values. To improve
great workplace culture, Hyundai has set three work attitudes: Bold Moves, Positive Energy, and
Inner Qualities. The high level of employee engagement is one of several factors that greatly
impact the company’s performance and talent growth.

Hyundai Company Material handling in the establishment of production and services,

they process of moving products and goods over a short distance, usually within a factory,
warehouse, or gated area. Automated material handling is a complex system of conveyor belts
moving raw materials, while manual material handling involves workers moving products using
side-loaders and forklifts. Conveyor systems are the bedrock of the automotive industry as they
eliminate the need for manual lifting services, reducing the chances of accidents, and increasing
productivity. Hyundai Material Handling is a full-line manufacturer of industrial forklifts, with
capacities from 2,200 lbs. to 55,000 lbs. They are manufactured with legendary quality, fit, and
finish and have been sold in North America for 22 years.

For Hyundai Company material handling equipment use for production and services, a
conveyor system is a fast and efficient mechanical handling apparatus for automatically
transporting loads and materials within an area. It may use a belt, wheels, rollers, or a chain to
transport objects. Conveyor systems consist of a belt stretched across two or more pulleys, and
one pulley drives or tows the belt. The most common conveyor system designs use a rotor to
power the drive pulley and belt, and the belt remains attached to the rotor through friction.
Conveyors must run in the same direction, either clockwise or counterclockwise, and sometimes,
the unit needs to turn to deliver items to the proper location. Conveyor systems are shaped
wheels or rotors that allow the belt to follow a bend or twist without getting tangled. They are
used to move objects from one location to another, saving time and making it easier to move
items up and down floors. Inclined belts can automatically unload material, eliminating the need
for someone to be on the opposite end to receive pieces. Hyundai uses all types of conveyor
systems for loading and storing products, and conveyors are essential for material handling in the
Hyundai business when it comes to the assembly of cars. Conveyors allow for the application of
hundreds of applications each hour throughout each work shift.

The Utilization of material and equipment of Hyundai Company, they utilized the RAKA
HANDLING BLOG to help keep their project or warehouse productive and efficient. Material
handling equipment can greatly benefit companies in diverse industries, as it can increase
efficiency, reduce waste, lower costs, and optimize a facility's space. The most significant
benefits of using material handling equipment are its ability to process items efficiently, reduce
production stoppages, and reduce waste. Additionally, it can help a company lower its costs and
increase profitability due to decreased work stoppages and errors. Hyundai Company can use
various types of material handling equipment to save space in a warehouse and increase capacity.
This includes mezzanines, tall racks, side loaders, secure storage devices and machinery, and
increased employee safety. Additionally, automation can be used to enhance efficiency in their
operations leading to lower costs. This material handling equipment can also reduce labor costs,
floor space costs, picking costs, workplace absences, and injuries. Additionally, it helps
streamline warehouse processes and enhances warehouse inventory management. Finally, it
improves workplace safety and motivates employees to perform their tasks faster and more
efficiently.

Hyundai Company Material requirement plan for procurement of Raw material, MRP is a
planning and control system for inventory, production, and scheduling used in the manufacturing
and fabrication industries. It is a push type of inventory control, meaning that organizations
forecast the amount and type of products they will purchase, along with the quantity of materials
to produce them. The main disadvantage of a push system is its vulnerability when sales vary,
leading to either a shortage of inventory or an excess of inventory that requires storage. Hyundai
company gives importance to purchasing of row material forecasting, as it minimizes the
inventory or excess the inventory and can lead to full storage. Hyundai also uses parameter
purchasing of product, such as right price, right quantity material, right quality, right source,
right time, right transportation, right attitude, right material, and right place of delivery.

Right Quantity: Materials purchased should be of right quantity. The right quantity is the
quantity that may be purchased at a time with the minimum total cost and which obviates
shortage of materials. Ensuring and maintaining a regular flow of materials for carrying the
production activity is the vital aim of Hyundai company. Excess purchases should be avoided, it
results in overstocking and capital is unnecessarily blocked and inventory carrying cost goes up.

Right Quality: The term right quality refers to a suitability of an item for the purpose it is
required. Hyundai producing the goods of best quality, the best grade of raw material may be the
right quality whereas for producing items of medium quality, the average lowest grade may be
the right quality.
 Right Time: Hyundai The time at which the purchases are to be made is of vital
importance. In case of items used regularly, right time means the time when the stock reaches the
minimum level. The reorder level of material is fixed for each item under the principle of right
time.

Right Source: In the purchasing process, Hyundai took into account the importance of
choosing the best source for the acquisition of materials. The provider who can provide the
requested material in the required quantity, at the requested quality, and at the specified time is
considered to be the best source for the purchase of that material. agreed pricing with the
supplier, who is able to fulfill their commitment without much follow-up, who has the
appropriate financial resources and manpower to handle the order, who is well-established with a
higher reputation and demonstrated business integrity, and who is in a position to do so.

Right Place: Hyundai should make sure that the materials are accessible at the
appropriate location before obtaining the materials in the appropriate quality and quantity from
the appropriate supplier at the appropriate pricing. The location from which the materials are to
be purchased has a significant impact on transportation and material handling costs. The choice
of the ideal location for material acquisition is crucial for reducing these costs. If both local and
international suppliers meet these requirements, the former should be chosen.

Hyundai Corporation implemented an online purchasing system. We may now purchase a

car entirely online or complete a lot of paperwork from the comfort of home. The data required
to provide you with a reasonable monthly payment amount, utilizing the Hyundai Program for
customer assurance. The first step in this process would be “ Buy Online “. By in accordance
with the steps. The Hyundai Corporation favors online shopping above traditional shopping
knowledge is currently entirely online. They’re made Click to Buy, which helps make life easy.
They can locate and buy a new one. Hyundai from the convenience of your own home. The
automobile is even delivered by participating dealers. To your front door. It is easy, secure, and
practical. Now comes complete everything at home.

Hyundai Click to Buy offers a flexible and secure car buying experience online at a
participating Hyundai dealer. Customers can get a loan approval quickly online, do all the
paperwork on their own computer, and stop at any point in the transaction. The best part is when
the dealer delivers the new vehicle, customers can schedule the delivery time with the dealer.
This transition from manual work to automating the RP management has reduced work hours
and improved customer service.
 When it come to choosing of suppliers or vendors selection, The purchasing department
of Hyundai is in charge of selecting the best vendors from which to order the goods the business
needs. One such sector that largely depends on supply chain and procurement is Hyundai. A car,
among other things, requires thousands of pieces. Third-party vendors provide a wide range of
components. Hyundai Corporation selects a good partner for ongoing collaboration through
system for evaluating suppliers. Customer satisfaction is given high priority in all of Hyundai
Company's projects. Thus, the chosen provider must adhere to the Hyundai Supplier's
requirements.

Hyundai Company adaptation of JIT manufacturing technique, Hyundai Mobis Asan

plant in South Korea is a good example of supplying parts just in Time to the nearby Hyundai
plant. It works sixteen hours per day in two shifts, producing chassis modules, front end
modules, and cockpits for Hyundai Motor. These are produced with a large number of variants
matching the demand and its sequence from the Hyundai main plant. There are 332 employees in
the Asan plant.

In-House Material Flow, The in-house material supply was mostly by automated guided
vehicles (AGV), although there also was some overhead and below-ground transport of material
and empty workpiece carriers. The AGV are custom commercial AGV rather than the converted
golf carts that you may see in Japan. As such, it came with a substantial price tag of around
300,000 € for the entire system. At the assembly lines themselves, critical material was handled
using pick-by-light. The material inventories all looked small to me, similar to Toyota. As it is
common sense in lean, expensive materials were tightly controlled. Inexpensive bulk material
like screws, on the other hand, were plentiful. You do not want to turn off your plant for the lack
of a twelve-cent screw.

The Loading Dock, one particular feature was the loading dock, which uses an approach
that I have never seen Before. The parts come from the assembly line just in time and just in
sequence, automatically Move into a small buffer, still in sequence, and then automatically are
loaded into the trucks. No human hand touches the material or even the workpiece carriers. The
material arrives just in sequence from the assembly line (overhead to cross an AGV and
Pedestrian path in the plant). A loading robot moves the material on a customized workpiece
Carrier. The image shows the example for the front end modules, but I have also seen a second
dock for the cockpits, and I believe there is a third for the chassis modules. Whenever the
Customized workpiece carrier is full (twelve front ends or seven chassis), it moves up/down to
Align with the truck and is pushed into the truck. The truck has capacity for two layers of
Modules. Once the truck is full, it departs immediately. The driver does not even go out to close
the doors .This is done by two assistants outside, and is also the only manual part of the loading
process. There are twenty-four trucks for chassis and front ends each per shift. While we were
not allowed to take pictures in the plant (and I always respect these wishes of my hosts), we
could take pictures outside. Below is the truck with the doors already closed and departing. This
is not a huge truck, but only a medium-sized vehicle. In the spirit of lean, Hyundai prefers more
smaller trucks rather than fewer big ones.

Hyundai’s production systems use modularization, automation, just-in-time

manufacturing, supply chain management, and flexible manufacturing systems. We study the
evolution of production planning and control. Production control monitors and oversees
production operations to increase output and achieve long-term goals. Improved production
scheduling ensures timely delivery for effective supply chain management. Coordinated pilot
projects, logistics, and warehouse management, along with innovative techniques, drive the
automotive and transmission process. With inventory and quality control, production control is
essential in operations management. Production control manages work schedules and resources
to ensure optimal productivity and quality. The goal is to meet long-term objectives, utilizing
proven systems. Hyundai’s production control involves Quality Control, Assurance and
Maintenance. They produce high-quality vehicles in Europe, reducing costs of quality failures.
Achievement is attributed to quality control and verification system, with focus on customer
satisfaction, efficient support, and quality issue prevention. Hyundai’s goal is to establish a top-
tier maintenance system and train skilled maintenance workers, leading to reduced downtime,
enhanced maintenance capabilities, and lower costs. Additionally, the company has created
procedures to streamline production planning and scheduling across their supply chain partners.
Hyundai’s department coordinates supply-chain activities using meetings and scheduling
policies, overcoming various challenges. Hyundai admits imperfections, but it enhanced
communication and understanding among members, leading to better customer satisfaction.

Production forecasting helps product-based brands maintain optimal inventory levels.

That way, they can keep customers happy and boost their overall profitability. Forecasting helps
to set goals and plan ahead Having accurate data and statistics to analyze helps businesses to
decide what amount of change, growth or improvement will be determined as a success. By
having these goals, companies can better evaluate progress. Hyundai company used forecasting
method for there production and service this method had big impact to there sales because it
determine the sales and which product are need and part of service need to improve.
 Hyundai Company products combine high productivity and precision for raw materials to
production and shipment. It is the result of their flawless quality control. Hyundai Company
adopted a technique consisting of inspecting and measuring raw materials to ensure that they are
in spec at the point of production. They ensure the components don’t fail once embedded in the
system. Hyundai Company has developed strict quality standards for component manufacturing
and testing. Only parts that meet these standards can be qualified for Hyundai Company
standards for quality management systems. The Hyundai Company generally expects parts and
materials to be manufactured, assembled, and tested in their qualified facilities.

Hyundai Company maintenance of quality in a desired level of quality in a product,

especially by means of attention to every stage of the process of production Hyundai adopted a
method of quality assurance PDCA. It includes solutions testing, analyzing results, and
improving the process of manufacturing. They use this method for problem-solving and to create
quality process improvements. Additionally, to increase the credibility and efficiency of quality
maintenance, Hyundai Company began to automate its service centers across the world. From
the time of arrival until departure, every procedure, and every process are strictly managed. The
company also develops diagnostic equipment with enhanced speed and diagnostic capabilities to
detect faults. To resolve difficult repair problems in real time so that it can guarantee quality.

Hyundai Company adopted a method of quality control that ensures that a product is free
from defects, operational issues, and any number of other problems. Hyundai Company products
undergo rigorous testing to ensure they’re well-engineered, safe, and comfortable. Hyundai
Company strengthens its quality by using various methods and techniques. Hyundai Company
promotes systematic process control and continuous monitoring and the latest statistical
technique to attain their goal of quality products.

Hyundai Company used various of quality control tools, to collect data, analyze data,
identify root causes, and measure results in problem-solving and process improvement. Hyundai
used quality control tools for them to generate new ideas, solve problems, and do proper
planning. Hyundai Company adopted these various fundamental instruments for product quality
and process improvement and used them to examine the production process, identify the key
issues, control fluctuations in product quality, and give solutions to avoid defects.

Hyundai Company Total Quality Management, established and implemented a quality

management system as follows based on the international standard ISO 9001. Quality is one of
Hyundai’s key points. The company goal is to supply customers with quality products and made
a full-fledged roll-out of quality management. To achieve it, they carry out quality planning,
quality control, and quality improvement activities. Hyundai has established an enterprise quality
management system for each step of the process and works to prevent quality defects in all
stages of its projects, by systematically and regularly providing education on the quality that is
customized to each position and job to create future value for customers. By applying the Project
Quality Rating System to ongoing projects, Hyundai is dedicated to constant quality
improvement through quality measurement, quality audit, trend analysis, and management
review.

Hyundai Motor Company employs a variety of maintenance techniques for its

equipment to ensure optimum performance and extend the lifespan of the machinery. This
technique helps to prevent breakdowns and reduces the likelihood of unplanned downtime,
which can be costly for the company. Another type of maintenance used is corrective
maintenance, which involves repairing equipment when it breaks down. This type of
maintenance is necessary when preventive maintenance measures fail or when the equipment is
nearing the end of its lifespan. This technique involves using data to predict when equipment is
likely to fail and conducting maintenance accordingly.

Hyundair Company adheres to a detailed maintenance plan that combines traditional and
scientific techniques to prolong the life of equipment and prevent malfunctions. Hyundai Motor
Company’s maintenance employs preventive methods through regular inspections to prevent
breakdowns and keep equipment running smoothly and efficiently. Corrective maintenance is
used when equipment breaks down, and repairs are performed immediately to minimize
downtime. Hyundai uses predictive maintenance, analyzing data to anticipate equipment failures
and adjust maintenance. Predictive maintenance minimizes downtime and reduces costs by
identifying issues before breakdowns occur. Technicians can then take corrective action to
prevent downtime. Hyundai’s maintenance schedule maximizes efficiency and reliability with
traditional and modern methods, minimizing downtime and costs.

In manufacturing facilities, scraps are materials that are left over from the production
process, such as metal shavings, plastic parts, or excess fabric. Surplus items are products or
materials that exceed the demand or production requirements, such as overstocked parts or
products. Obsolete items are products or materials that are no longer usable or needed due to
changes in technology, design, or other factors. Hyundai has implemented various measures to
manage these materials in an efficient and sustainable manner. For instance, the company aims to
minimize the production of scraps and surplus items by optimizing production processes and
inventory management. The company also has a rigorous quality control process to minimize the
production of defective parts and products.

Hyundai has developed a comprehensive waste management system to dispose of scraps,

surplus, and obsolete items in an environmentally-friendly manner. The company has
implemented the following methods of disposal; Recycling, Repurposing or Reuse, Donations,
and Disposal.