The Global Automotive Industry by Paul Nieuwenhuis & Peter Wells

Author:Paul Nieuwenhuis & Peter Wells [Nieuwenhuis, Paul & Wells, Peter]
Language: eng
Format: epub
ISBN: 9781118802359
Publisher: Wiley
Published: 2015-10-19T00:00:00+00:00

9.3.5 Quality Focused and Design Focused Management

As previously mentioned, in order for Hyundai to compete globally, ‘Quality Management’ was introduced in 1999 at the insistence of the company owners and the General Quality Headquarters, which was established in 2002, began taking a leadership role. In order to ensure market quality, strengthening of the quality check system by mid-level engineers, strengthening of quality management for each module unit and the formation of quality control systems that utilized digital technology were implemented. Furthermore, capacity building and control systems for essential suppliers were redesigned to smoothly conduct simultaneous modular production.

First, a policy of promoting global competition and coordination was adopted based on the open purchasing policy, long-term business relationships based on mutual trust, global sourcing and localization. Hence, in addition to focusing on the ability to propose technology, which basically includes quality and cost, integrated electronic purchasing systems ‘VAATZ (Value Advanced Automotive Trade Zone)’ based on competition were constructed, and Hyundai and Kia adopted a joint purchasing policy. They also introduced a five-star system for the objective evaluation and publication of supplier quality control systems and quality levels to strengthen their competitiveness through fair competition and monitoring. Furthermore, improvement of technological capability and quality was undertaken by building various support systems including guest engineer programmes, rental of test facilities and so on and through the formation of external support organizations for supporting suppliers. The results of these efforts were the ability to guarantee and maintain quality as demonstrated by the J.D. Power awards.

On the other hand, beginning mid-2000s, Peter Schreyer, designer of the Audi TT, was hired as general manager to focus not only on quality, but also on design. As a result, the product strategy began to focus more on product design to fulfil customer needs.

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