Supply Chain Synchronization Lessons from Hyundai Motor.Pdf

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Supply-Chain Synchronization: Lessons from Hyundai Motor Company Chan K. Hahn Department of Management College of Business Administration Bowling Green State University Bowling Green, Ohio 43403 Department of Management Bowling Green State University Department of Management Bowling Green State University Edward A. Duplaga Janet L. Hartley One of the challenges of supply-chain management is developing ways to effectively integrate activities across organizations on the supply chain. Hyundai Motor Company developed mechanisms to coordinate production planning and scheduling activities among supply-chain members. Hyundai Motor’s production-and-sales-control (P/SC) department uses regularly scheduled cross-functional meetings and scheduling policies to coordinate supply-chain activities. When implementing this process, the P/SC department overcame structural, environmental, and behavioral problems. Although Hyundai management concedes that the process is not perfect, communication among supply-chain members has improved, and the P/SC group has successfully promoted mutual understanding and respect among functional areas. The primary benefit, ultimately, is improved customer satisfaction through better integration of functional activities. D uring the last decade, many firms dramatically improved their internal operations, their product quality, their responsiveness, and their efficiency, and reduced their costs by following the pre- cepts of such philosophies as total quality management, process reengineering, and just-in-time production. However, managers still face increasing competitive pressures to continuously improve. OrgaPRODUCTION/SCHEDULING—APPLICATIONS PRODUCTION/SCHEDULING—PLANNING Copyright 2000 INFORMS 0092-2102/00/3004/0032/$05.00 1526–551X electronic ISSN This paper was refereed. INTERFACES 30: 4 July–August 2000 (pp. 32–45)

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