Description
The documentation explaining on Hyundai from Organization analyis point of view, lists down the reason for growth of Hyundai, organization structure of Hyundai.
ORGANIZATION THEORY AND PRACTICE
A project report on HYUNDAI MOTOR INDIA LTD. (HMIL)
INTRODUCTION
Hyundai Motor Company was established in the year 1967. The word “HYUNDAI” means “Modernization”. As the name indicates, the company adopts the most recent trends in manufacturing the latest design of cars used by people all over the world. Within 40 years of its establishment Hyundai has become the world’s 5th largest car manufacturer. It has the honor of making to this place within a very short period of time. The company employs over 68,000 people worldwide. Hyundai vehicles are sold in 193 countries through some 5000 dealerships and showrooms. Its headquarters are in Seoul, South Korea. Hyundai operates the world's largest integrated automobile manufacturing facility in Ulsan, South Korea, which is capable of producing 1.6 million units annually. Hyundai has built manufacturing plants in North America, China, India and Turkey as well as research and development centers in Europe, North America and Japan. The Hyundai logo is a slanted, stylized 'H' is symbolic of two people (the company and customer) shaking hands. The innovative spirit is the secret of success of Hyundai. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMI is situated in Sri Perumbudur in the Kanchipuram district of Tamil Nadu. They have dynamic leaders in the firm like their MD, Mr. H.S. Lheem and their Chairman, Mr. Mong Koo Chung. HMIL’s policy is always to be a stickler for quality. HMIL presently markets 16 variants of passenger cars in six segments. The Santro is in the B segment, Getz is in the B+
segment, the Accent and Verna are in the C segment, the Elantra is in the D segment, the Sonata Embera is in the E segment and the Tucson is in the SUV segment. HMIL is expanding its capacity in line with its positioning as HMC’s global export hub for compact cars. Apart from the expansion of production capacity, HMIL also plans to expand its dealer network from 183 to 250 this year. With the company’s greater focus its service network will be expanded to around 1,000 in 2008. The production management processes at Hyundai Motor India are overlaid with an organization wide implementation of best practices in manufacturing like 1.
2. 3.
Just-in-time Kaizen TPM & TQM
This helps in making the world’s best cars, right here in India.
OBJECTIVES OF THE COMPANY
• • • •
To set up a state-of-the-art integrated automobile manufacturing unit.
To attain quality and cost competitiveness through high levels of indigenization. To ensure development of the Indian auto industry and placing it on the world map. To launch latest international products those are engineered to meet sophisticated To establish a high quality services network across the country. To be an integral part of the Indian family in all aspects of their automobile experience in
standards the world over. • •
an endeavor to provide comfort, convenience, value and complete peace of mind. MODELS PRODUCED As a leading manufacturer in the automobile sector, HYUNDAI MOTORS INDIA LTD produces various vehicles in different sectors. The company has kept its mark in every class of the automobile industry. The models which are manufactured in this plant are as follows-
? O
SANTR XING (XE, XP,
XG, XS) ? ?
?
ACCENT (CRDI,TORNADO,VIVA,GLS) ELANTRA (CRDI,GLS) SONATA (GOLD,2.7V6,EMBERA) GETZ TUCSON TERRACAN VERNA i10
? ? ? ? ?
SHOPS IN HMIL HMIL Production flow Process consists of many shops, which can be elucidated as follows ? ? ? ? Press Shop Body Shop Paint Shop Assembly Shop Engine And Transmission Shop Test Track & PDI
?
?
Fig:- Flow of operations at HMIL ORGANIZATION STRUCTURE The structure of the organization is created to combine both Korean and Indian technology. The shops consist of both Korean and Indian technicians. In every shop the positions from ordinary supervisors to the deputy manager are held by Indians and top positions like general manager, shop manager and senior manager are held by Korean professionals. As the mother unit is present at Seoul, Korea the adaptability to technological changes has to be made in regard to that unit. So advances in any mechanisms are done by R&D engineers from Korea as well as by engineers from India. This adaptability ensures getting used to the technology introduced by HMC Korea and the changes in Indian markets like road test and crash test.
CONDUCIVE FACTORS FOR GROWTH & DEVELOPMENT
•
Geographic The location of HMIL plant is one of the main factors for its presence in the sub-continent. Their main aim is to make India a global hub for export of cars. Chennai is one of the very important destinations as it has a busy port in contact with different parts of the world especially Africa, which is the main region for their exports.
•
Work force Well-equipped and skilled work-force is available from the three surrounding districts of Chennai, Chengalpattu and Kanchipuram.
•
Association with mother plant The presence of professionals from Korea in administration and manufacturing entities ensure that technological innovations are at par with the mother plant.
•
Government encouragement The Indian Government has been very supportive to Hyundai motors. It helped the company to acquire 1200 hectares of land near Chennai without any conflicts. The Government has also provided some benefits at the Chennai harbor for their exports.
GROWTH OF THE ORGANIZATION Hyundai Motor India Limited (HMIL) started its operations in 1996 in Chennai, which was just 10 months after acquiring the land. It rolled out its first car for export within one year of its operations. HMIL is now India's second largest car manufacturer and the largest exporter of passenger cars. It has maintained its leadership by shipping out its 300,000th export car in Chennai very recently. HMIL achieved this milestone in a time span of less than 7 years, making it the largest exporter of passenger cars and the fastest ever to get to this landmark.
HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of some of the most advanced production, quality and testing capabilities in the country. In continuation to its investment to provide global technology to the Indian customer, HMIL has announced plans for its second plant, which will produce 300,000 units per annum, raising HMIL's total production capacity to 600,000 per annum by 2007. Hyundai motors have also invested in tool maintenance along with Research & Development. They also have a Tool Development exercise for every process. R&D is globalised and development of product life cycle draws huge investment. HMIL has received ISO 14001 certification due to their high quality environmental standards. They have also installed the Environment Management System (EMS) in their Chennai manufacturing unit. HIML has won many different awards since its inception. The most recent award is the "Executive Car of the Year-2006" for Sonata Embera given by Business Standard Motoring Magazine. The NDTV Profit- Car & bike Awards 2006 have chosen Tucson as the "SUV of the year". HMIL latest entrant, 'i10', titled as India’s No. 1 Car, has done
exceedingly
well
and
has
sold
over
50,000
units
in
its
first
six
months.
The year 2006 was a significant year for HMIL. It achieved a significant milestone by rolling out the 300,000th export car in the shortest time by any car manufacturing company. Hyundai exports to over 65 countries and it plans to continue its thrust in existing export markets. It is also gearing to step up its foray into new markets. The year that just ended also saw Hyundai Motor India attain other milestones such as the launch of the Verna.
FACTORS THAT HAVE LED TO ITS EXPANSION AND GROWTH • Marketing strategy
Hyundai motors positioned their car in the market as a car for the common man. This particularly envisaged the fact that Hyundai motor India is not only targeting the higher strata of the society but the common mass who wants to own a car. • Introducing latest technology To counter the competition from other automobile manufacturers HMIL has come up with a newer engine for its entire i10 model called kappa engine which is the result of a 10 year-long research in different engine designs by HMC.
•
Research and Development work in India Research and Development Center in Hyderabad has taken a major in R&D and have invested around U$ 40 million. This fact justifies that Hyundai Motor India has a major role to play in the R & D of all cars across the globe, which is one of the main reasons for the prosperity of HMIL.
•
Export base in India HMIL is strengthening the export base in India. Hyundai Motor India is already the base for Santro and from this year Getz will also be exported from India.
•
Corporate social responsibilities Hyundai Motor India Foundation (HMIF), the charitable arm of Hyundai Motor India Limited, is very active in discharging corporate social responsibilities in the area of community development, health, education, road safety and arts & science. Hyundai Motor India makes a contribution of Rs.100 towards Hyundai Motor India Foundation for every car sold in the domestic market to carry out these activities. Every year HMI contributes around U$ 450,000 to the Foundation and this contribution has risen to more than U$ 750,000 from 2008. HMIF has made meaningful contributions to the society in the form of infrastructure development of schools in and around their factory in Irrungattukottai; Road Safety Program - under the name of Hyundai Traffic Squad - is making a significant difference to road safety in the cities of its operation - Delhi and Chennai.
DECLINE OF SALES AND FAILURE OF MODELS After ten years of success in their operations and about 1 year after starting its 2 nd plant, HMIL is facing crisis for the first time. Hyundai motors domestic sales has declined by 23% in November. The current economic meltdown is playing a major role in the decline of automobile industries and HMIL is also a victim of the current condition. The decline of sales was a huge obstacle in the R&D center, which has resulted in HMIL postponing the launch of its much talked-about I-Bus. Hyundai I-Bus is a collaborative automobile designed and developed by HMIL and Copparo to suit the Indian requirement for luxurious heavy vehicles. CONCLUSION AND LEARNING FROM THE PROJECT HMIL has set an excellent example of how the combinative effort of different technological skills and productive research can attain a huge victory within a short span of 10 years. HMIL’s main objective to produce low cost automobiles to satisfy the needs of people has brilliantly worked in India and is looking forward to expand its venture by capturing the luxury car segment (Sedan) in the near future. After a detailed study of the project, we can relate the growth of HMIL to Greiner’s model Phase 5 of “Growth through Collaboration” which states that the organization is in good sense since the staff group and re-group flexibly in teams to deliver projects in a matrix structure supported by sophisticated information systems and team-based financial rewards. In HMIL the staff appraisals not only include financial bonus but also promotions in the shop floor. The staff is supported by sophisticated technology and information for performing their job. The Phase ends by crisis of internal growth; further growth can only be achieved by developing partnerships with complementary organizations. We can forecast that HMIL will progress only by collaborating with some companies, like their venture in Australia (Hyundai-KIA Motors). REFERENCES:
http://search.indopia.in/begin.php www.automobileindia.com/cars/hyundai-motors / www.indiamart.com/company/ www.hyundai.co.in
doc_440610453.doc
The documentation explaining on Hyundai from Organization analyis point of view, lists down the reason for growth of Hyundai, organization structure of Hyundai.
ORGANIZATION THEORY AND PRACTICE
A project report on HYUNDAI MOTOR INDIA LTD. (HMIL)
INTRODUCTION
Hyundai Motor Company was established in the year 1967. The word “HYUNDAI” means “Modernization”. As the name indicates, the company adopts the most recent trends in manufacturing the latest design of cars used by people all over the world. Within 40 years of its establishment Hyundai has become the world’s 5th largest car manufacturer. It has the honor of making to this place within a very short period of time. The company employs over 68,000 people worldwide. Hyundai vehicles are sold in 193 countries through some 5000 dealerships and showrooms. Its headquarters are in Seoul, South Korea. Hyundai operates the world's largest integrated automobile manufacturing facility in Ulsan, South Korea, which is capable of producing 1.6 million units annually. Hyundai has built manufacturing plants in North America, China, India and Turkey as well as research and development centers in Europe, North America and Japan. The Hyundai logo is a slanted, stylized 'H' is symbolic of two people (the company and customer) shaking hands. The innovative spirit is the secret of success of Hyundai. Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMI is situated in Sri Perumbudur in the Kanchipuram district of Tamil Nadu. They have dynamic leaders in the firm like their MD, Mr. H.S. Lheem and their Chairman, Mr. Mong Koo Chung. HMIL’s policy is always to be a stickler for quality. HMIL presently markets 16 variants of passenger cars in six segments. The Santro is in the B segment, Getz is in the B+
segment, the Accent and Verna are in the C segment, the Elantra is in the D segment, the Sonata Embera is in the E segment and the Tucson is in the SUV segment. HMIL is expanding its capacity in line with its positioning as HMC’s global export hub for compact cars. Apart from the expansion of production capacity, HMIL also plans to expand its dealer network from 183 to 250 this year. With the company’s greater focus its service network will be expanded to around 1,000 in 2008. The production management processes at Hyundai Motor India are overlaid with an organization wide implementation of best practices in manufacturing like 1.
2. 3.
Just-in-time Kaizen TPM & TQM
This helps in making the world’s best cars, right here in India.
OBJECTIVES OF THE COMPANY
• • • •
To set up a state-of-the-art integrated automobile manufacturing unit.
To attain quality and cost competitiveness through high levels of indigenization. To ensure development of the Indian auto industry and placing it on the world map. To launch latest international products those are engineered to meet sophisticated To establish a high quality services network across the country. To be an integral part of the Indian family in all aspects of their automobile experience in
standards the world over. • •
an endeavor to provide comfort, convenience, value and complete peace of mind. MODELS PRODUCED As a leading manufacturer in the automobile sector, HYUNDAI MOTORS INDIA LTD produces various vehicles in different sectors. The company has kept its mark in every class of the automobile industry. The models which are manufactured in this plant are as follows-
? O
SANTR XING (XE, XP,
XG, XS) ? ?
?
ACCENT (CRDI,TORNADO,VIVA,GLS) ELANTRA (CRDI,GLS) SONATA (GOLD,2.7V6,EMBERA) GETZ TUCSON TERRACAN VERNA i10
? ? ? ? ?
SHOPS IN HMIL HMIL Production flow Process consists of many shops, which can be elucidated as follows ? ? ? ? Press Shop Body Shop Paint Shop Assembly Shop Engine And Transmission Shop Test Track & PDI
?
?
Fig:- Flow of operations at HMIL ORGANIZATION STRUCTURE The structure of the organization is created to combine both Korean and Indian technology. The shops consist of both Korean and Indian technicians. In every shop the positions from ordinary supervisors to the deputy manager are held by Indians and top positions like general manager, shop manager and senior manager are held by Korean professionals. As the mother unit is present at Seoul, Korea the adaptability to technological changes has to be made in regard to that unit. So advances in any mechanisms are done by R&D engineers from Korea as well as by engineers from India. This adaptability ensures getting used to the technology introduced by HMC Korea and the changes in Indian markets like road test and crash test.
CONDUCIVE FACTORS FOR GROWTH & DEVELOPMENT
•
Geographic The location of HMIL plant is one of the main factors for its presence in the sub-continent. Their main aim is to make India a global hub for export of cars. Chennai is one of the very important destinations as it has a busy port in contact with different parts of the world especially Africa, which is the main region for their exports.
•
Work force Well-equipped and skilled work-force is available from the three surrounding districts of Chennai, Chengalpattu and Kanchipuram.
•
Association with mother plant The presence of professionals from Korea in administration and manufacturing entities ensure that technological innovations are at par with the mother plant.
•
Government encouragement The Indian Government has been very supportive to Hyundai motors. It helped the company to acquire 1200 hectares of land near Chennai without any conflicts. The Government has also provided some benefits at the Chennai harbor for their exports.
GROWTH OF THE ORGANIZATION Hyundai Motor India Limited (HMIL) started its operations in 1996 in Chennai, which was just 10 months after acquiring the land. It rolled out its first car for export within one year of its operations. HMIL is now India's second largest car manufacturer and the largest exporter of passenger cars. It has maintained its leadership by shipping out its 300,000th export car in Chennai very recently. HMIL achieved this milestone in a time span of less than 7 years, making it the largest exporter of passenger cars and the fastest ever to get to this landmark.
HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of some of the most advanced production, quality and testing capabilities in the country. In continuation to its investment to provide global technology to the Indian customer, HMIL has announced plans for its second plant, which will produce 300,000 units per annum, raising HMIL's total production capacity to 600,000 per annum by 2007. Hyundai motors have also invested in tool maintenance along with Research & Development. They also have a Tool Development exercise for every process. R&D is globalised and development of product life cycle draws huge investment. HMIL has received ISO 14001 certification due to their high quality environmental standards. They have also installed the Environment Management System (EMS) in their Chennai manufacturing unit. HIML has won many different awards since its inception. The most recent award is the "Executive Car of the Year-2006" for Sonata Embera given by Business Standard Motoring Magazine. The NDTV Profit- Car & bike Awards 2006 have chosen Tucson as the "SUV of the year". HMIL latest entrant, 'i10', titled as India’s No. 1 Car, has done
exceedingly
well
and
has
sold
over
50,000
units
in
its
first
six
months.
The year 2006 was a significant year for HMIL. It achieved a significant milestone by rolling out the 300,000th export car in the shortest time by any car manufacturing company. Hyundai exports to over 65 countries and it plans to continue its thrust in existing export markets. It is also gearing to step up its foray into new markets. The year that just ended also saw Hyundai Motor India attain other milestones such as the launch of the Verna.
FACTORS THAT HAVE LED TO ITS EXPANSION AND GROWTH • Marketing strategy
Hyundai motors positioned their car in the market as a car for the common man. This particularly envisaged the fact that Hyundai motor India is not only targeting the higher strata of the society but the common mass who wants to own a car. • Introducing latest technology To counter the competition from other automobile manufacturers HMIL has come up with a newer engine for its entire i10 model called kappa engine which is the result of a 10 year-long research in different engine designs by HMC.
•
Research and Development work in India Research and Development Center in Hyderabad has taken a major in R&D and have invested around U$ 40 million. This fact justifies that Hyundai Motor India has a major role to play in the R & D of all cars across the globe, which is one of the main reasons for the prosperity of HMIL.
•
Export base in India HMIL is strengthening the export base in India. Hyundai Motor India is already the base for Santro and from this year Getz will also be exported from India.
•
Corporate social responsibilities Hyundai Motor India Foundation (HMIF), the charitable arm of Hyundai Motor India Limited, is very active in discharging corporate social responsibilities in the area of community development, health, education, road safety and arts & science. Hyundai Motor India makes a contribution of Rs.100 towards Hyundai Motor India Foundation for every car sold in the domestic market to carry out these activities. Every year HMI contributes around U$ 450,000 to the Foundation and this contribution has risen to more than U$ 750,000 from 2008. HMIF has made meaningful contributions to the society in the form of infrastructure development of schools in and around their factory in Irrungattukottai; Road Safety Program - under the name of Hyundai Traffic Squad - is making a significant difference to road safety in the cities of its operation - Delhi and Chennai.
DECLINE OF SALES AND FAILURE OF MODELS After ten years of success in their operations and about 1 year after starting its 2 nd plant, HMIL is facing crisis for the first time. Hyundai motors domestic sales has declined by 23% in November. The current economic meltdown is playing a major role in the decline of automobile industries and HMIL is also a victim of the current condition. The decline of sales was a huge obstacle in the R&D center, which has resulted in HMIL postponing the launch of its much talked-about I-Bus. Hyundai I-Bus is a collaborative automobile designed and developed by HMIL and Copparo to suit the Indian requirement for luxurious heavy vehicles. CONCLUSION AND LEARNING FROM THE PROJECT HMIL has set an excellent example of how the combinative effort of different technological skills and productive research can attain a huge victory within a short span of 10 years. HMIL’s main objective to produce low cost automobiles to satisfy the needs of people has brilliantly worked in India and is looking forward to expand its venture by capturing the luxury car segment (Sedan) in the near future. After a detailed study of the project, we can relate the growth of HMIL to Greiner’s model Phase 5 of “Growth through Collaboration” which states that the organization is in good sense since the staff group and re-group flexibly in teams to deliver projects in a matrix structure supported by sophisticated information systems and team-based financial rewards. In HMIL the staff appraisals not only include financial bonus but also promotions in the shop floor. The staff is supported by sophisticated technology and information for performing their job. The Phase ends by crisis of internal growth; further growth can only be achieved by developing partnerships with complementary organizations. We can forecast that HMIL will progress only by collaborating with some companies, like their venture in Australia (Hyundai-KIA Motors). REFERENCES:
http://search.indopia.in/begin.php www.automobileindia.com/cars/hyundai-motors / www.indiamart.com/company/ www.hyundai.co.in
doc_440610453.doc