HYUNDAI MANUFACTURING PLANTS:THE WORLDS LARGEST AUTOMOBILE PLANTTHE ULSAN PLANT

As Hyundai Motors main production facility, the Ulsan Plant sits on a 5,050,000 m2 site and is equipped with five independent plants that employ over 34,000 personnel to produce an average of 5,400 vehicles a day. Additionally, the plant has its own port where up to three, 50,000-ton ships can anchor simultaneously. The Ulsan Plant, also dubbed the Forest Plant, encompasses 580,000 trees as part of its landscape and state-of-the-art facilities.

THE ADVANCED PRODUCTION BASE FOCUSING ON EXPORT STRATEGY-THE ASAN PLANT

With an annual capacity of 30,000 units, the Asan Plant is an entirely self-contained, independent automobile production complex that mainly produces strategic mid-to large-size passenger cars for export. The Asan Plant offers a bright and pleasant, people-oriented and nature-inspired working space, and has proven that the quality of the working environment determines the quality of products.

WORLDS LARGEST SCALE COMMERCIAL VEHICLE PRODUCTION PLANT-THE JEONJU PLANT

With an annual production capacity of 125,000 units, the Jeonju Plant specializes in producing mid-to large-size buses, trucks, and specialty vehicles that exceed 2.5 tons.

GLOBAL PRODUCTION SYSTEM

MAKING THE TOP 10 IN ITS FIRST YEAR OF OPERATION IN NORTH AMERICA

Within one year after it began mass production in May 2005, the Alabama Plant achieved the incredible feat of being placed 10th in product quality among 37 plants in North America. It focuses on mid-to full-size vehicles, and continues to live up to its reputation as a comprehensive automobile plant that applies the latest technologies and techniques to its production lines.

600,000 UNITS PER CAPACITY-CHINA PLANT

YEAR

PRODUCTION

In addition to the existing first plant, a second plant with an annual capacity of 300,000 units was added to the China Plant, increasing its total annual production capacity to 600,000. The plant is a reassuring foothold in securing a sizable share in the automobile market in China, which is rapidly becoming a global economic powerhouse.

SECOND PLACE MARKET SHARE IN JUST TWO YEARS- INDIA PLANT

A comprehensive, self-sufficient automobile plant that focuses on the R&D, testing, manufacturing, and sales of new products that are adapted to the Indian market, the India Plant added a second plant in 2008 to achieve an annual production capacity of 600,000 units. It serves as an overseas manufacturing plant for compact cars, such as the first overseas-specific model i10 and the strategic European model i20. It has accomplished much in Indias automobile industry, including setting a production record of 2,500,000 units and sales of 1,000,000 units in the shortest time, and is responsible for 20% of the market share and 66% of the automobile export in India.

CRITICAL FOOTHOLD IN THE EUROPEAN MARKET-TURKEY & CZECH REPUBLIC PLANTS

Turkey : The expansion of the Turkey Plant in March 2007 resulted in an increase in the annual production capacity from 60,000 units to 100,000 units. A strategic foothold that

connects Europe, Africa, and the Middle East, the Turkey Plant plays a key role in the increase of exports from the region through the localization of the Accent and i20 models. Czech Republic : Nineteen months after its historic groundbreaking, the Czech Republic Plant commenced mass production in November 2008. The Czech Republic Plant focuses on a strategy of full localization to develop models geared to the tastes of European consumers. Taking full advantage of its strategic location in the center of Europe, the Czech Republic Plant

RUSSIA PLANTS
Scheduled to commence mass production in January 2011, the Russia Plant is the only auto plant in Russia that can handle the entire manufacturing process of complete units. The plant will start off with an annual production of 100,000 units, which will eventually increase to 150,000 units. Comprised of expert employees trained in Korea and in the Czech Republic, the Russia Plant will focus on production of the C-Class models with reinforced designs adapted to the local needs in Russia.

BRAZIL PLANTS
The Brazil Plant will secure a manufacturing foothold in the biggest market in Central and Latin America and play an important role in increasing sales in the region. The Brazil Plant will be producing stylish and fuel efficient compact cars suited for the Brazilian market, and contribute to increasing the market share in the region.

INVENTORY MANAGEMENT:In an ongoing effort to enhance customer service, Hyundai will roll out a new inventory management system to dealers, which is expected to increase same-day service repairs and enhance inventory efficiency. The Supply Modeling and Retail Tracking collaborative dealer inventory management program, known as Smart Stock, has increased parts sales by 19 percent and inventory turns by 25 percent in a pilot program. Hyundai's goal is to increase same-day service repairs, a key component of overall customer service. Between 30 and 40 dealerships will be upgraded to the Smart Stock system in November, with all Hyundai dealers having access by the end of 2010. While individual dealers understand local market trends and seasonal demands, Smart Stock takes a collaborative approach to inventory management. Smart Stock leverages the inventory supply system used by Hyundai and the data generated by

Hyundai's network of almost 600 dealers to optimize stocking at the individual market level. "The bottom line is that we provide the information and tools that the dealer needs to make informed stocking decisions," said George Kurth, Director of Supply Chain and Logistics. "Guesswork is virtually eliminated because the dealer knows the importance of each part and the system will automatically recommend whether that part should be stocked or not." The key differentiator is that Hyundai is forecasting demand up to six months into the future rather than relying on historical average demand, enabling dealers to get ahead of trends and seasonality. Once a dealer is operational, Hyundai guarantees that it will buy back all inventory that does not sell on a quarterly basis provided the dealer ordered the parts in accordance with program guidelines. The Smart Stock system is compatible with ADP, Reynolds or UCS computer systems and Hyundai dealers with parts managers trained on these systems will be first to upgrade to Smart Stock. Hyundai is targeting upgrades to one market per region per month through 2003.

HYUNDAIS COMPETITIVE ADVANTAGE:In this sternly aggressive business world, the goal of most firms is to establish distinctive or unique capabilities to gain a competitive advantage in the marketplace through utilising the most of their core competencies. Competencies refer to the

fundamental knowledge owned by the firm (knowledge, know-how, experience, innovation and unique information), and to be distinctive they are not confined to functional domains but cut across the firm and its organisational boundaries. Having a competitive advantage is having a difference, the choice of certain activities to deliver a unique value-mix to a selected market, thus the ability to perform particular activities and manage the linkages between activities is the key source of competitive advantage. The strategic task, then, is to create a distinctive way ahead, using whatever core competencies and resources at its disposal, against the background and influence of the environment. Through these distinctive capabilities the organisation seeks sustainable competitive advantage. Competition in many domestic and international markets appears to be entering a new phase, in which product quality and performance are becoming more important to customers than price. In such markets, the effective management of the new product development process is the essence of competitive advantage. Hyundai Motor Company is regarded as the largest auto-manufacturing industry in South Korea and known as the fifth largest industry in the

world. The company has the capacity to produce or manufacture 1.6 million units in a year. The company has been able to give emphasis on each level of the industry which enables them to gain the trajectory and momentum required to attain competitive position of being a world-class automotive brand and to attain competitive advantage (Worldwide Hyundai,2010). The company has been able to operate in different parts of the world including US, Europe and other parts of Asia. The management of the company are accountable for having a sustainable competitive advantage in a business. If the management would not be able to do their tasks efficiently, the company might lose their competitive advantage. Competitive advantage is the status of the company in the market environment against their rival companies. Like any other industry, Hyundai has also their competitive advantage against their rival auto-manufacturing industries in the world. In addition, the company may also erode or lose their competitive advantage and position if the management will not be able to adapt to the changing market and customer need, specifically in car industries. For instance auto manufacturing industries nowadays must be able to provide car products

which are affordable and cost-effective in terms of diesel engine aspects. In this regard, Hyundai must be able to produce cars that adhere to these needs. In order to sustain their competitive advantage, Hyundai has manufactured Hyundais i30 (Hyundai i30 SX CRDi, 2008). Compared to its diesel rivals, the diesel i30 emerge to have gazumped them all on either price or size before it has turned a wheel. Products like these enables Hyundai to sustain their competitive advantage in the growing crisis of diesel and energy. Aside from that, there are many ways in which Hyundai will be able to sustain their competitive advantage. First of, the company should be able to continue to maintain the superiority of their cars that they offer to the market. Furthermore in order to sustain their competitive advantage by presenting two new production models and a program than enhances the general environmental compatibility of their products. For example, the Sonata brand has been the standard bearer of the company all over the world in the D segment, and the other is the 2008 matrix. The company ensures that they also consider corporate social responsibility to ensure their competitive advantage by providing products which are environmental friendly as their way of dealing with the greenhouse gases global issues. The are able to

create an eco-concept package demonstrating how the emerging technologies can make a relative reduction in CO2 emissions without punitive penalties in terms of price, driving enjoyment and performance. This context is a near production approach for reducing CO2 emission and fuel consumption (Hyundai Motor, 2008) . As a global leader, the company must also strive harder to fulfil their obligations to provide the needs of the society. The company can also consider their pricing strategy by providing affordable yet quality cars and vehicles to the market. Industrial models which are to be consistent with part of a strategy of 'flexibility and innovation' must therefore give the firm the resources to counter the risks of erosion and losing of their competitive advantage. In order to cope with the various influences and effects of market environment changes, and to sustain their competitive advantage, the management of Hyundai, must be able to improve and expand its organisation so as to conduct environmental activities on a global scale which include the expansion of Hyundai through the manufacturing presence of the brand in China, India, U.S., and Europe; and plans for new plants in Czech Republic and Russia as well as establishing transplants which is an overseas production plant; refers to vehicles

produced in US or somewhere else at a Hyundaiowned plant. Aside from this, the management of Hyundai must also be able to focus on tier research and development department and to initiate innovative strategies, accordingly, the higher echelon of management in organisations is now driven towards innovative strategies designed to provide a competitive advantage and edge in the marketplace. As business gravitates towards a global scale, entrepreneurs find themselves faced with the challenge of producing new and better products at reduced cost and market price. Daft (2003) pointed out that in managing a global environment, managers of Hyundai must be characterised by the ability to bring about change through innovation and creativity. As discussed, the knowledge of the underlying sources of competitive advantage highlights the abilities and core competencies of Hyundai as a world leader in auto manufacturing industries. In this regard, the company must be able to determine strategies and ways to ensure that their competitive position and advantage are being sustained in all levels of the organization.

TOTAL QUALITY INDEX (TQI):Hyundai produced the most segment leaders of any automotive manufacturer, according to Strategic Visions Total Quality Index(TM) (TQI), which measures total vehicle satisfaction among new car owners. Clinching the top spot in three distinct vehicle segments is a first for Hyundai. The Strategic Vision results released today placed the Hyundai Azera sedan atop the large car segment, the Entourage (tied with the Kia Sedona and Nissan Quest) in the top spot for the minivan segment and the Santa Fe on top in the small sport utility vehicle (SUV) segment.

RESEARCH AND DEVELOPMENT

-ENGINE & MISSIION

The pride of Hyundai Motor is now measured worldwide ! As Hyundai Motor Company continues to develop cutting edge engines that will beat as the heart of next generation cars, we are confident that we will be the major player of the automobile industry in the future.
THE 'S-ENGINE'-THE NEW CONCEPT THAT OVERCAME PREVIOUS LIMITATIONS

The S Engine, the world's highest quality V6 engine, developed solely by Hyundai, achieves a powerful performance generating 240 horsepowerand the super fuel efficiency. This engine boasts the most economical fuel

efficiency available today. It not only offers fast response time, but also overcomes limitations of existing diesel engines. Its power output is equivalent to gasoline engines and it also meets the Euro 4 Environmental Regulation standards, proving this is the most advanced new concept diesel engine, with top quality engine performance, fuel efficiency, and environmental friendliness, all at the same time. The S Engine, currently available in the Veracruz, is also attracting industry attention for its superb performance and fuel efficiency.

Quality Management:The world's automobile makers closely watch to see what Hyundai will do next. With uncompromising craft man ship, we will build only the most superior vehicles.

The Hyundai Sonata, Elantra, and Tucson were selected as the 'Most Ideal'cars in three segments in Auto Pacific's 2007 Ideal Vehicle Awards, which conducts studies to determine if cars meet the needs and expectations of customers and selects the most ideal cars by calculating customer responses on 15 measurable points.

"Quality control in Production & Manufacturing":Manufacturers across a wide range of industries face many common challenges in their efforts to meet rising quality control and standards. The growing mix of complex products, global expansion of operations, and outsourcing requires a new

approach to quality management. Many organizations are deploying either industry standard quality management methodologies such as Six Sigma and ISO 9000, or implementing other quality practices to reduce costs, shorten cycle times and improve overall product and process quality. But what do you think how and what are the methods organisations can adopt to ensure quality control in their production and manufacturing.

LAYOUTS USED IN HYUNDAI:-