Hyundai Motors: Supply Chain Management
SUPPLY CHAIN MANAGEMENT OF Hyundai motors
Company Overview:
Hyundai Motor India is a wholly owned subsidiary of Hyundai Motor Company. It is the second largest manufacturer and the largest exporter in India. HMIL presently markets 7 models of passenger cars which include Santro, Getz prime, i10, i20, Accent, Verna, Sonata and Tucson. Hyundai Motor India has a fully integrated manufacturing facility with a production capacity of 600000 units per annum. HMIL currently exports to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. As of December 2010, HMIL has 413 dealerships and 600 authorized service centers in 329 cities across India. In 2010 the sales was 603819 vehicles with approximately 50% of the sales in domestic market and the remaining in export markets
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Production planning:
The assembly line needs to have accurate information on the inventory level to maintain the production rate. 60 minute Stoppage in the assembly line at HMIL costs 400000 USD. The production planning process used to be manual and there were number of line stoppages due to non availability of inventory. Production schedules were important to avoid line stoppages, engine and transmission plan was essential. The schedules were important for the vendors to maintain the inventory supply. Manual reports were generated using excel and consolidated to plan the requirements of inventory for the next production cycle. Real time information on the inventory levels was not available, the stock levels were known only by the end of the day. There were shortages of essential parts and only after the daily updates the shortages were known.
In 2008 a new application was developed to share the information online with the vendors and also within the company. The application had AS/400 screens to capture data online and display in the web. PCs and barcode printers were placed along the line. The data was entered every two hours, production and inventory plans were
Company Overview:
Hyundai Motor India is a wholly owned subsidiary of Hyundai Motor Company. It is the second largest manufacturer and the largest exporter in India. HMIL presently markets 7 models of passenger cars which include Santro, Getz prime, i10, i20, Accent, Verna, Sonata and Tucson. Hyundai Motor India has a fully integrated manufacturing facility with a production capacity of 600000 units per annum. HMIL currently exports to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. As of December 2010, HMIL has 413 dealerships and 600 authorized service centers in 329 cities across India. In 2010 the sales was 603819 vehicles with approximately 50% of the sales in domestic market and the remaining in export markets
.
Production planning:
The assembly line needs to have accurate information on the inventory level to maintain the production rate. 60 minute Stoppage in the assembly line at HMIL costs 400000 USD. The production planning process used to be manual and there were number of line stoppages due to non availability of inventory. Production schedules were important to avoid line stoppages, engine and transmission plan was essential. The schedules were important for the vendors to maintain the inventory supply. Manual reports were generated using excel and consolidated to plan the requirements of inventory for the next production cycle. Real time information on the inventory levels was not available, the stock levels were known only by the end of the day. There were shortages of essential parts and only after the daily updates the shortages were known.
In 2008 a new application was developed to share the information online with the vendors and also within the company. The application had AS/400 screens to capture data online and display in the web. PCs and barcode printers were placed along the line. The data was entered every two hours, production and inventory plans were