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Hyundai:

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by

Addina Hadi

on 15 April 2015

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Transcript of Hyundai:

MPG Faulty Ratings
Hyundai:
QUALITY
Shift to Quality
ABLE-QMS
(Quality Management System)
Introduction
Toyota Production System
Ju-Yung Chung
Founder of Hyundai Motor Company (HMC)
main goals
priority
What happened?
Production increases
Quality decreases
Reliability decreases
Costumer satisfaction decreases
BAD BRAND REPUTATION!
Mong-Koo Chung
Ju-Yung Chung's son
TPS
ABLE-QMS
Issue of Recovery
The Sonata Recall
Warranty
Warranty
Introduction
The End
NEW FOCUS!
benchmarked
TOYOTA
industry's quality leader
produce vehicles with
highest quality
increase HMC's production
technology independence
self-reliance
implement
Toyota Production System (TPS)
in Hyundai
Hyundai attempted to implement
TPS

Faced difficulties due to various differences in automobile production between
Hyundai

&
Toyota

Created
Hyundai Production System (HPS)
, a mutated version of
TPS
Characteristics of HPS
Selective & graduated adoption
of TPS
Technology-driven radical innovation
Engineer-led & worker exclusive approach
Advantages of HPS
Manufacturing utilization increases
Production quality increases
Inventory management increases
ABLE-QMS
(Quality Management System)
Quality management solution
based on
development capability
to realize
quality business management
of manufacturing businesses

Monitors quality status
of all production processes and
improves quality
through
advanced quality management
,
manufacturing quality management
,
quality issue improvement management
, &
quality index management

Currently implemented at
Hyundai Motor Group
ABLE-QMS
Strengths:
Ensures scalability
through standard information technology
Flexible system
for changing working environment
Effects:
Secures competitive quality & a foundation for
quality improvement

Issues of Recovery
The Sonata recall (2011)

MPG faulty ratings (2011-2013)
What happened?
Possible faulty connecting Hyundai's steering assembly


Causes:
Manufacturing error
Lack of focus on quality

Remedy:
Dealers will
inspect
the steering column intermediate shaft universal joint connection for
proper assembly and torque
Dealers will update the power steering software
free of charge
!
Had to withdraw 129,000 Sonata cars
Overstated MPG (miles per gallon) ratings on over 90000 of 2011-2013 automobile models

Compensation:
Voluntarily corrected those ratings
Comprehensive
reimbursement program
for its wronged costumers
Costumers in US & Puerto Rico receive
personalized debit cards
that reimbursed them for the difference between the EPA combined fuel economy rating for their car(s) and Hyundai's claimed MPG (Each card took into account gas prices in the area surrounding the costumer, as well as how many miles the petrol had driven)
Customers received another 15% of their reimbursement amount for any inconvenience the false MPG claims may have caused them
Previous owners who sold their cars before the MPG problem was discovered and also receive the reimbursement
Hyundai Motor Company was very quick to act whenever a problem surfaces
Hyundai
is known for having
"The Best Warranty"
in November 1998

Hyundai Motor America (HMA)
launched national commercials called
"The industry's best warranty"
Warranty of 10 years
Original costumers receive 100,000-mile powerstrain protection

92% of Hyundai buyers in 1999 claimed that
the warranty was one of the main reason they
bought the car


Outcomes of Hyundai's warranty
Prioritize more on
product quality
HMC taking steps in
strengthening R&D personnel
Working harder with suppliers to
improve quality & durability
Full transcript