Hyundai Product Design

ASSIGNMENT
No.2
A STUDY ON
SCOPE OF
OPERATIONS
MANAGEMENT
IN HYUNDAI
MOTOR
COMPANY
Submitted by
GROUP 1, OPERATIONS MANAGEMENT
A STUDY ON SCOPE OF OPERATIONS MANAGEMENT IN HYUNDAI MOTOR COMPANY
GROUP 1
S.No NAME Reg.No.
1 Aarcha Ann 37220001

2 Anjali Devadas 37220002
3 Arun B 37220003
4 Arun Kailasan 37220004
5 Athul Baby 37220005
6 Athul Jacob 37220006
7 Bharath S 37220007
8 Edwin Joseph 37220009
9 Fathima Shirin 37220010
10 Gokul H 37220011
11 Haleema K R 37220012
12 Jino Jacob 37220014
13 Jisna Raphel 37220015
14 Jithu M J 37220016
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S.No. CONTENT P.No.
1 Introduction 3
2 History of Hyundai Motor Company 3
3 Forecasting 13
4 Capacity Planning 14
5 Location Analysis 17
6 Facility Layout 18
7 Scheduling 19
8 Inventory Management 21
9 Quality Management 23
10 Supply Chain Management 25
11 Product Design 29
12 Conclusion 32
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 INTRODUCTION
We have decided to select ‘Hyundai Motor Company’ as the

international organization for the purpose of elaborating the 9
scopes of Operation Management.
The 9 scopes of Operation Management include the following:

o Forecasting
o Capacity building
o Location Analysis
o Facility layout
o Scheduling
o Inventory Management
o Quality Management
o Supply chain management
o Product design
Hyundai is one of the most popular automobile manufacturing
companies in the world. Hyundai operates the world's largest
integrated automobile manufacturing facility in Ulsan, South Korea
which has an annual production capacity of 1.6 million units.
Moreover, Hyundai vehicles are sold in 193 countries through 5,000
dealerships and showrooms and the customers have the confidence
that Hyundai is sure their cars and they do not run into problems
even after prolonged use. When millions of buyers think alike,
the dependability and performance scores of a brand rise
automatically and so does its popularity. We will further be
discussing all the 9 scopes of operation management mentioned
above in relation to the ‘Hyundai Motor Company and how these
scopes affect and influence an international organization like
Hyundai.
 HISTORY OF HYUNDAI MOTOR COMPANY
For decades, Hyundai has been on the front line of modern car
design and manufacturing. The very word “Hyundai” is appositely
derived from the Korean word “hanja” meaning “modernity.”
Constantly pushing the envelope, the company has a long history
of technological innovation.
But it hasn’t evolved merely for the sake of evolution. Rather,

the firm has always had one goal in mind: building cars of
unbeatable quality. These days, Hyundai is more devoted than
ever to create the ideal driving experience.
Hyundai Motor sold more than 4.4 million vehicles globally in
2019 and currently employs some 120,000 personnel worldwide. The
company is enhancing its product lineup with vehicles designed
to help usher in a more sustainable future while offering
innovative solutions to real-world mobility challenges. Through
the process, Hyundai aims to facilitate ‘Progress for Humanity’
with smart mobility solutions that vitalize connections between
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people and provide quality time to its customers. We all know

that Hyundai Motor Company officially launched its brand in 1967,
but the origins of the auto giant go back a bit further, to the
post-war world of South Korea. It started in 1947 when an
entrepreneur named Chung Ju-yung founded a small business called
Hyundai Engineering and Construction Company. The aim was
simple: to help South Korea rebuild and industrialize after the
ravages of World War II. Unfortunately, the Korean War dashed
his hopes and his business plan.
Following so quickly on the heels of the last major war, it

forced Chung Ju-yung to abandon the company and instead seek
work at the Korean Ministry of Transportation. Although it would
be over a decade before the formation of Hyundai Motor Company
in the late 1960s, it was there, at the nation’s transportation
agency, that the seeds of Ju-Yung’s next project were planted.
Hyundai Motor Company officially got off the ground in 1968 with
the introduction of its very first model “the Cortina” which the
company collaborated with Ford Motor Company to manufacture the
Cortina. The release of the car was the first step in what would
be a long and successful journey. Manufactured in the Ulsan
plant, in the southeastern region of the country, the car was
enough of a hit to encourage Chung Ju-Yung in his undertaking.
Indeed, it was after the rollout of the Cortina that he decided
to step up his efforts to create a robust and independent
automotive business. In order to realize his dreams of creating
high-quality, mass-produced vehicles for the South Korean
public, Chung Ju-Yung brought in a number of British automotive
executives and engineers, starting with George Turnbull,
formerly the managing director of Austin-Morris. Together they
designed the Pony, released in 1976, which broke ground as South
Korea’s very first mass-produced car.
The Pony wasn’t just a one-time wonder. Manufactured in Korea,

designed with the help of British engineers, styled by Italy’s
Giorgio Giugiaro, built with a 1.2 liter Mitsubishi engine, the
car was a truly international product that presaged the worldwide
scope of its producer. It was only a matter of time before
Hyundai began selling its prized creation in the global
marketplace. Exporting began with Ecuador, and then quickly
expanded to other parts of the world from South America to Europe
to North America. In fact, by the middle of the decade, the Pony
was the highest selling car in Canada. While Hyundai hadn’t yet
broken into the U.S. market, they were developing a starry
reputation in many other countries. Of course, expansion brought
with it a number of issues, not the least of which was quality
control. While it was relatively easy to sell cars on the new
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South Korean market, it was a bit more difficult to please

foreign car buyers.
Executives quickly realized they would have to focus on

excellence, as well as expansion, and Hyundai’s long-term
strategy of quality growth was born. Throughout the 1980s,
Hyundai grew at a fleeting rate, making huge marks in
international markets. It wasn’t until 1986, however, that the
company hit one of its biggest goals, that is, breaking into the
U.S. market. Initially, that proved difficult, owing to strict
emissions standards, but before long Hyundai met the challenge
with flying colors. It did so with the model “Excel”, a revised
version of the Pony that featured front-wheel drive and low
emissions. South Korea’s first American offering hit U.S.
markets in two forms: a 4-door sedan and a 5-door hatchback trim.
Designed once again by Giorgio Giugiaro, the Pony Excel was
conceived specifically for foreign markets. As a cost-efficient
alternative to many domestic cars, it proved popular with
consumers, (becoming the best-selling imported car of 1986), as
well as critics (hitting Forbes’s list of best products). The
Excel model proved such a success that Hyundai continued
producing it until 1994 when the sleeker Accent arrived. Despite
an initially strong showing, Hyundai wasn’t entirely satisfied.
Still, under the leadership of founder Chung Ju-Yung, it wanted
to push the envelope once again in its constant drive to improve
quality and boost standards. Over the next few years, the company
would make huge advances in design and technology, Nowadays,
while many things have changed, much else has remained the same.
Hyundai’s main plant is still located in Ulsan, where it produced
its very first car, only now it is the single biggest integrated
car manufacturing center in the world.
Current Strategies
An artistic vision and philosophy are integral to the success of

any brand before. The design of any car built by Hyundai Motor
flows naturally from the front to the back, enabling their
customers to experience automobiles that are almost like
sculptures. Their never-ending research into automotive design
and construction enables them to build cars of breathtaking
beauty.
Hyundai Motor’s efforts to seek a unique design identity resulted

in the creation of an icon that reflects beauty in motion and
takes its inspiration from the power of nature. The final result
is “River Stone”, an icon that forms the matrix of their design
identity. Endlessly polished and made stronger by the forces of
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nature, River Stone captures the essence of Hyundai Motor Design.

It combines the ceaseless power of nature, the dynamism of the
elements, and the beauty and elegance of the wind and the waves
to produce automotive designs that will leave purchasers
breathless.
Hyundai Motor’s R&D activities are devoted to capturing the

essence of automobiles, with a primary emphasis on performances
elements that form the unique properties of automobiles that
people truly desire. Hyundai Motor believes every automobile it
builds should be faithful to the basic performance attributes of
all truly renowned cars. With this commitment in mind, they
continue to create automobiles that boast the world’s highest
levels of quality and safety. This will be done through the
development of technologies that embody the five basic performance
standards that form the underpinnings of every automobile: Ride
and Handling; Noise, Vibration, and Harshness; Durability; Safety;
and Powertrain and Fuel Efficiency. They are also dedicated to
technological convergence and hyper-connectivity, including eco-
friendly and autonomous cars.
Hyundai Motor offers its customers a wide range of exciting and

innovative services that are guaranteed to leave them feeling
happy and satisfied. They include “Preventative Service”, which
offers no-cost vehicle inspections and maintenance to stop
problems before they appear; “At Your Home Service”, which
provides customers with convenient and timely vehicle pick-ups
and deliveries; and their “Sunday Maintenance Service”, offered
at all Blue hands service centers. They also add to the convenience
of our customers with a full array of world-leading smart devices.
These include Service Center Automation Service, featuring
digitally systematized service stages; the Hyundai Virtual Guide,
a virtual reality user’s manual; their Mobile-Based, Next-
Generation Diagnostic System; and Remote Diagnostic Service.
Their commitment to service innovation has been so highly-regarded

by customers that they ranked first in the 2016 Korea Service
Quality Index survey conducted by the Korean Standards Association
for the second year in a row. Also ranked first in the Automobile
After-Sales category in the Korea Service Quality Index survey
for the sixth straight year.
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Hyundai Motor’s BLUE-DRIVE strategy is leading the search for eco-

friendly cars that can lessen pollution to a minimum. They are
putting efforts into R&D to develop technologies that will improve
fuel economy and decrease our dependency on fossil fuels. Also
focuses on eco-friendly cars like electric vehicles, hybrid cars,
plug-in hybrid cars, and fuel cell EVs that can dramatically
reduce pollutants. Their goal is to continue creating healthier
lives through “Clean Mobility”. BLUE-DRIVE is an eco-friendly
technology development strategy of Hyundai Motor that will lead
an era of environmentally conscious mobility through efforts to
improve fuel economy and discover new sources of energy.
Hyundai Motor launched its Project IONIQ innovation-incubating

program to prepare for an era of future mobility that will overcome
all restrictions and limitations currently placed on automobiles.
They carry out research into possible mid- to long-term
transportation methods and lifestyle innovation technologies
based on an in-depth understanding of society, culture, the arts
and sciences, and architecture. Adopting an open innovation
approach allows them to establish cooperative and collaborative
research undertakings within an industry-academic-research
networking context. Beginning with our dedicated “Green IONIQ”
model, the project will concentrate on creating exciting new
mobility functions, products, and services that will change our
way of life.
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Hyundai Motor opened its Project IONIQ Lab in partnership with

Seoul National University. It is located in South Korea’s Pangyo
Techno Valley. The lab introduced a series of “2030 Future
Megatrends” by selecting twelve future trends that are likely to
affect the automobile industry. Based on these, it is carrying
out research into the kinds of technologies and services that will
be required for future transportation methodologies.
Four key features of PROJECT IONIQ

o Freedom from Accidents and Inconveniences
o Freedom from Environmental Pollution and Energy Exhaustion
o Freedom to Effortlessly Access Mobility Whenever and Wherever
o Freedom to Connect Everyday Life while on the Move
Hyundai Motor’s RM (Racing Midship) series uses high-performance
technologies to constantly challenge the limitations of automobile
engines and powertrains and extend the potential of the Hyundai
Motor N series. The RM14 model featured a midship structure that
focused on speed and acceleration, while its follow-up, the RM15,
came with a high-tensile body employing aluminum space frames and
carbon-fiber-reinforced, plastic body panels. This year’s RM16
features technologies designed to improve the power and
performance of the series. Hyundai Motor will continue using its
RM automobiles as a mobile laboratory for its high-performance N.
Hyundai Motor Company announced an updated roadmap for its future

business Strategy 2025 at the ‘2020 CEO Investor Day forum held
virtually in Seoul. The comprehensive mid-to long-term strategy—
presented by President and CEO Wonhee Lee and other executives to
various stakeholders, including shareholders and investors—
reinforces Hyundai’s plan to lead the future mobility industry as
a Smart Mobility Solution Provider. The updated Strategy 2025
roadmap is supported by three key pillars: Smart Mobility Device
and Smart Mobility Service—both part of the original plan revealed
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in 2019—as well as H2 Solution, the addition of which reflects

Hyundai’s commitment to fuel cell development and
commercialization.
Hyundai Motor’s updated strategy aims to achieve three major

directives: enhancing the competitiveness of its automotive
business through electrification, establishing a foundation for
becoming a leading mobility service, and securing initiatives for
a hydrogen ecosystem. With the aim of offering innovative and
comprehensive mobility experiences to customers while
contributing to the development of an industry-wide ecosystem,
the updated focuses on four major business areas—EV, urban air
mobility (UAM), autonomous driving technologies, and hydrogen fuel
cell system. “The year 2020 has been the first year to implement
our Strategy 2025. Despite a challenging business environment
caused by the COVID-19 global pandemic, we have successfully
established the foundation for business growth for the next five
years. Hyundai is now equipped with new strategies to respond to
the rapidly changing business environment,” said President Lee.
“Along with our relentless efforts to improve profitability,
Hyundai Motor will continue to make mid-to-long-term investments
to lay the foundation for sustainable growth in the upcoming
years.”
At the forum, company executives, including Albert Biermann,

President and the Head of Hyundai Motor Group R&D Division; Jaiwon
Shin, Executive Vice President and Head of UAM Division; Saehoon
Kim, Senior Vice President and Head of Fuel Cell Center; and
Woongjun Jang, Vice President and Head of Autonomous Driving
Center, gave presentations in each major business area. Hyundai
Motor also unveiled its mid-to-long-term financial goals, which
include an investment of KRW 60.1 trillion by 2025, securing an 8
percent operating margin in the automotive sector, and achieving
a 5 percent range of global automotive market share.
Updated Strategy 2025

At the beginning of the COVID-19 pandemic, Hyundai Motor predicted
the crisis would rapidly digitize the automotive industry and
increase consumer demand for sustainable solutions, and speed up
the transition from fossil fuels to electrification with increased
investments to the hydrogen ecosystem worldwide.
For the Smart Mobility Device and Smart Mobility Service pillars
of Strategy 2025, the company plans to bolster its value chain
and products while accelerating its digital transformation with
the aim of providing optimized vehicles and services based on
data. Hyundai also plans to launch a Smart Mobility Service
business based on integrated mobility platforms. It will expand
the scope of the provision of mobility services based on local
communities and diversify its value-added business model utilizing
vehicle data. For its new H2 Solution pillar, the company will
accelerate its hydrogen ecosystem initiative by upgrading fuel
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cell system technology and expanding the fuel cell business beyond
the development of fuel cell vehicles. The company plans to expand
the application of its fuel cell system in all transportation
areas such as ships, trains, forklifts, and UAMs.
Electric Vehicle (EV)
Starting with the launch of IONIQ 5 in 2021, Hyundai plans

to sell 560,000 EVs per year by 2025. The company expects to
introduce more than 12 BEV models, including BEVs built upon E-
MGP, Hyundai Motor Group’s platform for dedicated EVs. In the mid-
to-long term, Hyundai aims to secure leadership in the EV market
and achieve an 8-10 percent share of the global EV market by 2040.
Starting from 2030, the company will gradually expand BEV
offerings in key markets such as the U.S., Europe, and China,
eventually aiming to fully electrify its product lineup in major
global markets by 2040. It will also support the democratization
of EVs in emerging markets such as India, Russia, and Brazil with
more diverse EV models. To achieve this goal, Hyundai will secure
manufacturing competitiveness through increased parts
standardization and reduced cost. To meet the diverse needs of
regional customers, the company plans to pursue regionally
optimized EV product operation strategies. In addition to
manufacturing world-leading EV models, Hyundai will also make
efforts in charging infrastructure as well as battery businesses.
The company plans to build 20 high-speed charging stations in
Korea by 2021. Overseas, it will continue to carry out high-speed
charging network projects with various partners, such as high-
speed charging network projects in collaboration with IONITY in
Europe.
Urban Air Mobility (UAM)
As a Smart Mobility Solution Provider, Hyundai Motor will continue

developing UAM, an innovative means of transportation that will
help reduce urban congestion and improve people’s quality of life.
At CES2020 in January, Hyundai presented its vision for future
mobility by introducing the UAM concept model, ‘S-A1’, which is
being developed based on four principles: safe, quiet, affordable,
and human-centered solution. To take the lead in the UAM market,
Hyundai Motor will build a family of air vehicles that covers both
passenger and cargo transportation sectors. The company plans to
introduce an air cargo Unmanned Aircraft System (UAS) with a
hybrid powertrain in 2026, and launch an all-electric UAM model
optimized for intra-city operations in 2028. In the 2030s, the
company plans to launch regional air mobility that connects
adjacent cities. From the initial stage of development, Hyundai
will design its UAM models with a focus on scalable commercial
production. In addition, the company plans to develop a hydrogen
powertrain for aviation using Hyundai’s own fuel cell technology
that can offer unrivaled efficiency and flight range. Hyundai will
continue to collaborate with diverse parties in both private and
public sectors to create a safe and efficient UAM ecosystem that
is acceptable to the general public.
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Autonomous Driving Technology
Hyundai Motor is speeding up its efforts to develop autonomous

driving technologies, especially in the area of sensor fusion and
an integrated controller.Hyundai has been applying sensor fusion
technology that integrates, and processes information collected
from various sensors such as cameras and radars. The company will
add more cameras and start using lidars on mass production
vehicles to further improve recognition accuracy.Hyundai is
developing a next-generation integrated controller by adding high-
performance processors to its existing controller. Various
advanced technologies, such as level 3 self-driving technology,
self-parking functions and deep learning-based image recognition
technology, can be applied with this next-generation controller.
In particular, Over-the-Air (OTA) update function will be applied
based on this unit from 2021. Feature on Demand (FoD) will also
be introduced.Starting from 2022, Hyundai plans to offer models
equipped with level 3 autonomous driving technology. In addition,
the company will accelerate commercialization of level 4 and 5
technologies through collaboration with partners around the globe.
The establishment of Motional Inc., a joint venture between
Hyundai and Aptiv lnc., is part of Hyundai’s efforts for global
cooperation. Hyundai plans to continue its cooperation and
strategic investment on global companies in the U.S., China, and
Israel, while continuing its in-house efforts to advance self-
driving technologies for various applications.
Fuel Cell System
Hyundai today also introduced ‘HTWO’, a new brand to represent

the company’s world-leading hydrogen fuel cell system. Building
upon Hyundai’s 20-plus years of experience in hydrogen fuel cell
technology, the brand will present hydrogen as a positive energy
for humanity. HTWO stands for ‘H2’, the hydrogen molecule, whilst
also representing ‘Hydrogen’ and ‘Humanity’, the two main pillars
of Hyundai’s fuel cell business. The launch of the new fuel cell
system brand will help facilitate Hyundai’s global fuel cell
business and grow the hydrogen ecosystem.
With HTWO, Hyundai Motor is stepping up efforts for the

development of a next-generation hydrogen fuel cell system that
can be applied to various forms of mobility such as UAM,
automobiles, vessels and trains. Not only will the next-generation
fuel cell system be available for many different mobility products
and services, it will deliver enhanced performance and durability
at an affordable price in a lighter architecture with enhanced
energy density. With its next generation fuel cell system, the
company aims to offer a highly efficient and diversified lineup
of hydrogen-powered vehicles.
Through strategic partnerships with hydrogen, energy and logistics

companies around the world, Hyundai Motor has expanded its fuel
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cell system business, accelerating development of a hydrogen

society and laying the foundation for the company’s HTWO brand,
with initial focus on major hub regions – Korea, the United States,
Europe and China.
Since marketing the world’s first mass-produced fuel cell electric

vehicle ix35 in 2013, Hyundai has been expanding its vehicle
offerings powered by its fuel cell system such as NEXO SUV, XCIENT
Fuel Cell heavy-duty truck and a fuel cell electric bus, as zero-
emission mobility solutions. As a member of the Hydrogen Council,
a global coalition of leading energy, transportation and industry
companies with a shared vision and long-term ambition for
hydrogen, Hyundai is committed to fostering a clean energy
transition.
Financial Targets
Under the Strategy 2025 roadmap, Hyundai disclosed updated mid-

to long-term financial goals—running from 2020 through 2025—
including an investment of KRW 60.1 trillion by 2025, 8 percent
operating margin in the automotive sector and a 5 percent level
of global automotive market share. This is an upgrade of the plan
announced in December 2019 and will be carried out despite
deteriorated market conditions due to the pandemic.Out of the
total, KRW 36.6 trillion will be allocated for R&D and capital
expenditures to enhance competitiveness in existing businesses,
while KRW 23.5 trillion will be dedicated to future technologies,
including electrification, hydrogen fuel cells, UAM, autonomous
driving, mobility service and platform, connectivity, AI and
robotics. In particular, investment into electrification and
hydrogen businesses increased significantly to KRW 14.9 trillion
from KRW 10.4 trillion announced last year due to the full-scale
implementation of the hydrogen business and the expansion of the
EV lineup.Despite uncertainty in the global market caused by
COVID-19, Hyundai Motor will continue to pursue its 8 percent
target for operating profit margin in the automotive sector by
2025 through cost innovation to lay the foundation for sustainable
future growth. In the case of internal combustion engine vehicles,
for which global demand is expected to recover after COVID-19,
the company will focus on recovering profitability on the back of
wider adaption of third-generation platforms in various models,
optimization of production at regional headquarters, retail
innovation and global expansion of the Genesis luxury brand.
For EVs, the company will cement its leadership with the
introduction of E-GMP platform. It aims to bolster competitiveness
at all stages of EV businesses throughout development, production
and sales to achieve profitability comparable to that of ICE.
The company also strives to enhance shareholder value through

market-friendly return policy. Despite concerns over
uncertainties in the business environment in 2021, the company
plans to consider annual dividends in the deliberation of
liquidity and earnings recovery.
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 FORECASTING
Forecasting is the process of making predictions based on past

and present data. Later these can be compared (resolved) against
what happens. For example, a company might estimate its revenue
in the next year, then compare it against the actual results.
Prediction is a similar, but more general term. Forecasting might
refer to specific formal statistical methods employing time
series, cross-sectional or longitudinal data, or alternatively to
less formal judgmental methods or the process of prediction and
resolution itself.
Hyundai Motor Company announced its 2021 global sales performance,

recording a 3.9 percent increase from a year earlier despite the
ongoing pandemic and supply chain issues.
Sales outside of Korea rose 7 percent to 3,164,143 units thanks

to the company’s proactive and market-specific strategies as well
as the popularity of its SUV models and growing eco-friendly
vehicle line-up.
Sales in Korea declined 7.7 percent to 726,838 units amid the

semiconductor shortage that has affected the global automotive
industry.
For December, monthly global sales totaled 334,242 units,

including 268,130 for overseas markets and 66,112 for the Korean
market.
In 2021, Hyundai was able to jump-start its transition into

electrification thanks to the successful launch of IONIQ 5, the
first dedicated battery electric vehicle. The company’s positive
sales results stemmed from strategic supply chain management
despite the challenging business environment caused by the ongoing
pandemic, semiconductor supply issue, and fluctuation of raw
material prices.
With auto demand expected to recover worldwide in 2022 amid

growing competition in the industry, Hyundai aims to sell 4.32
million units around the globe with optimized business strategies
tailored for each region. The company aims to sell 3.59 million
units in overseas markets and 732,000 units in Korea.
The company will continue implementing diverse measures to take

care of its customers and to offer the world’s best products to
meet their needs. Furthermore, the company plans to solidify its
global leadership in the eco-friendly mobility market through the
launch of upcoming IONIQ dedicated EV models and electrified GV70
of the Genesis luxury brand.
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The monthly sales figures provided in this press release are

unaudited and on a preliminary basis.
o Sales in Korea are based on retail sales while overseas

sales (global sales excluding Korea) are based on
wholesales.
o Sales results include entire sedan, SUV, and CV models
produced by Hyundai Motor.
o This press release contains forward-looking statements that
are based on current expectations about possible future
events. Our actual results may differ due to a variety of
factors.
 CAPACITY PLANNING
Capacity planning is the process of evaluating all available

production resources, including machinery, staffing, and work
centres to understand if the manufacturer will be able to meet
customer demand now and in the future.
An important subset of capacity planning is resource capacity

planning, which is the process of deciding how to optimize the
function of existing resources, which resources to add, and which
resources to downgrade or remove. There are many key factors
directly affecting capacity planning in operations management.
o Importance of capacity planning
Frankly, without it, we cannot be running a business efficiently.

By doing this, we'll be able to tell if too many people are working
on one task (meaning paying out more in wages than is necessary)
or if not enough people are working on it (which probably won't
be finished on time). Capacity planning is important in making
sure that everybody is working to their full potential. A capacity
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plan not only looks at where your business is right now in terms
of the workload we are facing but also where it is likely to be in
the future. This is important because business managers might look
at their actual workload and reduce the workforce because there
seem to be too many outgoing expenses in terms of wages, and not
enough income in terms of orders from customers. The problem with
this approach is that it can often turn out to be a rash decision
that will cost the business in the long term. With a smaller
workforce, one might be unable to handle more work when it
eventually comes their way again. Capacity planning can help us
there.
o Factors Affecting Capacity Planning

One challenge that production schedulers have is keeping track of
all the factors that impact capacity planning. This can be
readily remedied with a next-generation scheduling software like
Optessa. Optessa allows schedulers to configure all capacity
constraint factors in seconds, without custom coding. This
advanced planning and scheduling system will then consider all
these constraints when creating the production schedule and
optimize operational capacity with patented algorithms.
Hyundai Motor Company(HMC) has decided to increase its production

capacity in a phased manner, instead of a one-time expansion. The
company was earlier planning to increase its production capacity
-- calculated on a two-shift basis -- by 80,000 units per annum
to 2 lakh units to meet the anticipated demand. HMC president
said: "We are planning to increase our capacity by 30,000 units
to 1.5 lakh units. Then, depending upon the market environment,
we would take the appropriate decision". Preliminary work in terms
of feasibility study and planning has already begun and the
expansion program is likely to be completed in 15-18 months, he
added.
The company has provisioned an investment of Rs 300 crore to Rs

400 crore for the initial expansion of capacity. Once completed,
the expanded capacity would employ additional 600 employees. At
present, the Irrungattukottai plant, near Chennai, has on its
rolls 2,600 permanent employees. ruled out the possibility of its
Korean parent, Hyundai, infusing fresh equity into capacity
expansion. It would be funded entirely through internal accruals
and debt financing.
o Capacity planning in India
Out of the total capital base of $312 million, equity from the
parent company is $212 million and the rest is contributed by debt
of $100 million. "We have repaid all our debt to Indian banks and
financial institutions. The remaining debt in the balance sheet
is the amount owed to foreign financial institutions", the Indian
head said. HMIL had availed of loans from the State Bank of India,
ICICI, and PNB. It was expected that the company would avail of
the unutilized component of loans sanctioned earlier by these
banks and financial institutions, he added.
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On why the company is opting for capacity expansion instead of

increasing the number of shifts to three, the Indian Head of HMC
said: "Many shops, including engine, transmission, and body, are
working in three shifts. With respect to the assembly line, it is
better never to exhaust, as excess capacity would act as a buffer."
Hyundai Motor India, the country’s second-largest car manufacturer
today announced that its Chennai plant is future-ready in terms
of meeting the safety and emission norms well in advance before
the mandatory industry implementation in 2019. The company claims
its Mega manufacturing plant has adopted futuristic technologies,
and it had achieved the milestone of becoming the fastest Indian
automobile manufacturer to roll out 8 Millionth cars in a span of
19 years and 9 months. The manufacturing unit is spread across
535 acres and along with advanced Manufacturing 4.0 production
equipped with over 590 - Generation 4 robots, quality and testing
capabilities with flexible engine plants to cater to India as well
as the global market. Hyundai Motor India states its plant is
running at almost 100 percent capacity utilization and aims to
increase its production capacity from the current 700,000 units
to 750,000 units per annum through value engineering and without
any future investment.
In order to help its employees, align their goals and skills with
that its own, Hyundai’s mega manufacturing plant is currently
working on 4 core principles for its next 20 years of journey of
excellence under the initiative – My Place My Pride (MPMP).
Currently celebrating 20 years of production and sales in India,
Hyundai has also established itself as one of the largest car
exporters since its inception and currently exports to 88
countries. The digitalized operations at the Hyundai smart plant
capture over 1.2 billion data points across the manufacturing
processes to gain insights to prevent and preempt errors in
producing Zero Defect vehicles and ensuring plant safety. The
global body build line has 100 percent weld automation along with
the flexibility to produce five models in a single line, which it
claims is a testimony of its plant’s technical prowess.
The Chennai mega plant has been recognized by the Hyundai Motor
Company and awarded as the number one performing overseas plant
amongst an entire group with ‘The Platinum Award for Excellence
2017’ and ‘Plant Safety Award 2017’.The plant also has robust
quality check systems - ‘Hyundai Integrated Vehicle Inspection
Systems’ and ‘Hyundai Integrated Power –Train inspection Systems’
for full proof systems and three-stage inspection at the factory,
pre-delivery Inspection, and delivery for complete quality
assurance. It also has incorporated environment-friendly measures
and focuses on ‘Green Manufacturing’ with ‘Self Sustainable
Resources’. There are 4 ponds spread across 15 acres for rainwater
harvesting, and as part of its energy conservation initiative, it
16 | P a g e
has installed LED bulbs that have not only brought down the energy
consumption but also resulted in a saving of Rs 13 crore per year
in terms of electricity cost.
According to a PTI report, Hyundai Motor India MD and CEO S S Kim

"There is a strong preference for personal mobility these days
owing to the pandemic. So, considering the low base of last year,
we may close the year with around 20 percent growth,". On
semiconductor shortage, he said the company is maintaining a close
relationship with suppliers and adopting a flexible manufacturing
approach. "This is how we have been able to cater to the demand.
Still for some models like Creta, the demand is greater than the
production capacity but we are trying to produce more and cut
waiting periods," Kim said.
In the case of Creta, the demand keeps growing, and currently,

the orders are around three times larger than the production
capacity. So, every month, the pending bookings are getting
accumulated which explains the huge waiting period for the model,
he added. Commenting on the emerging trends in the domestic
passenger vehicle segment, Hyundai Motor India Director (Sales
and Marketing) Tarun Garg said the demand for premium features
like a sunroof and connected technologies in vehicles was
increasing at a fast clip in the market. The company, which is
known for loading its cars with features to the brim, is all set
to drive in a new SUV -- Alcazar later this month. Hyundai led
the sports utility vehicle (SUV) space in the country with sales
of 1.8 lakh units in 2020. Its current SUV range includes Venue,
Creta, and Tucson.
 LOCATION ANALYSIS
Location analysis is a decision-making process directed at

discovering the most suitable location for the business, keeping
in mind the important business parameters. It is a detailed study
of locations that helps business decision makers sort out through
different locations to short-list the most optimal.
Hyundai Motor India Engineering (HMIE) is a fully owned subsidiary
of Hyundai Motor Company, South Korea, which is located at
Hyderabad, Telangana. HMIL established HMIE in November 2006 and
contributed to the development of Hyundai Motors' popular new
models for the Indian market starting with the Eon and followed
now by the "i" series, and also in SUV segments like the Creta.
Hyundai Motors' other overseas R&D centers are located in the
United States, Germany, Japan, Korea, and China. There are many
manufacturing locations across the globe such as...Czech, Turkey,
Russia, China, Alabama, Brazil, Ulsan, Asan, Jeonju in Korea,
17 | P a g e
etc. When Hyundai Motor Company entered the Indian automobile

market in 1996 the Hyundai brand was almost unknown throughout
India. During the entry of Hyundai in 1996, there were only five
major automobile manufacturers in India, i.e. Maruti, Hindustan,
Premier, Tata, and Mahindra. Daewoo had entered the Indian
automobile market with Cielo just three years back while Ford,
Opel, and Honda had entered less than a year back. HMIL has two
manufacturing plants in Irungattukottai and Sriperumbudur in Tamil
Nadu. HMIL's manufacturing plant near Chennai claims to have the
most advanced production, quality, and testing capabilities in
the country. To cater to rising demand, HMIL commissioned its
second plant in February 2008, which produces an additional
300,000 units per annum, raising HMIL's total production capacity
to 600,000 units per annum. Current Production Capacity efficiency
has led to rolling out cars in 31 seconds, with these two plants
in Irungattukottai , Sriperumbudur increased to 7,40,000 cars per
year.
 FACILITY LAYOUT
According to Moore, facility layout is the plan of or the act of

planning an optimum arrangement of facilities, including
personnel, operating equipment, storage space, material handling
equipment, and all other supporting services along with the design
of the best structure to contain these facilities.
Hyundai’s facility layout provides an ideal relationship between
raw material, equipment, manpower, and final product at minimal
cost in a safe and comfortable environment. They focus on:
o To provide optimum space to organize equipment and

facilitate movement of goods and create a safe work
environment.
o To promote order in production towards a single objective.
o To reduce movement of workers, raw materials, and equipment.
o To promote the safety of plants as well as their workers.
o To facilitate extension or change in the layout to
accommodate new product line or technology upgradation.
o To increase the production capacity of the Hyundai.
o To achieve a better facility layout, they provide
o Better training of the workers and supervisors.
o Creating awareness about health hazards and safety standards
o Optimum utilization of workforce and equipment
o Encouraging empowerment and reducing administrative and
other indirect works.
Hyundai takes any and all measures needed to help in reducing the
incidence of workplace accidents and fatalities. This is done
through a variety of proactive and preemptive health and safety
activities and the creation of a safety-first management
environment and culture. They include operating situation rooms
18 | P a g e
at each workplace to guard against outbreaks of infectious

diseases like COVID-19. The company increased its health and
safety budget by 83% in 2021, going from KRW 61.9 billion in 2020
to KRW 113.1 billion. This occurred in response to tightened
governmental regulations and an increased risk of industrial
accidents. It is currently making improvements to its health and
safety management system by strengthening its organization and
adding more personnel to its ranks.
 SCHEDULING
Scheduling can be defined as “prescribing of when and where each

operation necessary to manufacture the product is to be
performed.” It is also defined as the “establishing of times at
which to begin and complete each event or operation comprising a
procedure”. The principle aim of scheduling is to plan the
sequence of work so that production can be systematically arranged
towards the end of completion of all products by the due date.
Certain principles associated with scheduling

o The principle of optimum task size: Scheduling tends to
achieve maximum efficiency when the task sizes are small,
and all tasks are of the same order of magnitude.
o Principle of optimum production plan: The planning should
be such that it imposes an equal load on all plants.
o Principle of optimum sequence: Scheduling tends to achieve
maximum efficiency when the work is planned so that work
hours are normally used in the same sequence.
o Types of Scheduling
Types of scheduling can be categorized as forwarding
scheduling and backward scheduling.
o Forward scheduling
It is commonly used in shops where customers place their
orders on a “needed as soon as possible” basis. Forward
scheduling determines the start and finishes times of the
next priority job by assigning it the earliest available
time slot and from that time, determines when the job will
be finished in that work centre. Since the job and its
components start as early as possible, they will typically
be completed before they are due at the subsequent work
centres in the routing. The forward method generates in the
process inventory that is needed at subsequent work centres
and higher inventory cost. Forward scheduling is simple to
use and it gets jobs done in shorter lead times, compared
to backward scheduling.
o Backward scheduling
It is often used in Hyundai and commits in advance to
specific delivery dates. Backward scheduling determines the
19 | P a g e
start and finishes times for waiting jobs by assigning them

to the latest available time slot that will enable each job
to be completed just when it is due, but done before. By
assigning jobs as late as possible, backward scheduling
minimizes inventories since a job is not completed until it
must go directly to the next work centre on its routing.
Forward and backward scheduling methods are shown in the
following figure.
The five components of the production schedule in Hyundai

o Planning
The planning component of production scheduling is by far
the most important. This component pertains to deciding what
will be done in the future. Without a plan, production
scheduling can not even begin or take place. Preparing a
plan through charts, production budgets, or various other
visual representations can provide a sound basis for steps
down the road pertaining to production. There are two types
of planning that can be used: static planning and dynamic
planning. Static planning assumes that all steps will be
completed on time with no changes, while dynamic planning
assumes that some process steps will change.
o Routing
Production routing is the process that is used to determine

the route or path that a product must follow. This route
entails the path from raw materials until it is transformed
20 | P a g e
into a finished product. The main objective of this component

is to locate and perform the most economical and enhanced
sequence of operations in the production process.
o Scheduling
Scheduling coincides with the time and date that the

operation must be completed. Scheduling is an essential and
crucial portion of production scheduling and lays the
foundation and groundwork for all of the steps within the
production process. There are three types of scheduling that
operations utilize, such as master scheduling, manufacturing
or operation scheduling, and retail operation scheduling.
Overall, scheduling is key for a manufacturing operation to
proceed.
o Dispatching
Dispatching relates to the process of assigning the order

of jobs from the preconceived production plan. Dispatching
is concerned with giving a practical shape to an overall
production plan. This will also include issuing any orders
and instructions and other important information pertaining
to production.
o Execution
The last component of production scheduling is the proper
execution of the created schedule. Staff members must work
together to ensure that items are produced in the right
order and delivered on time. A proper schedule execution
would be one that has the fewest amount of bottlenecks or
late orders.
 INVENTORY MANAGEMENT
Inventory management refers to the process of ordering, storing,

using, and selling a company's inventory. This includes the
management of raw materials, components, and finished products,
as well as the warehousing and processing of such items. Inventory
management is vital to a company’s health because it helps make
sure there is rarely too much or too little stock on hand, limiting
the risk of stockouts and inaccurate records.
Hyundai Mobis Co., South Korea's leading auto parts

producer, is improving the component supply system in Europe and
North America so that Hyundai-Kia Motors customers in the regions
can be provided with the parts they need just in time. The company
announced on November 17 that it has successfully set up a new
supply system, which manages inventories at each distribution
centre based on the demand of customers in regions, for its
automaking affiliates in Europe.
21 | P a g e
When there are too many stages of component supply systems, it

takes longer to deliver parts and customers often fail to be
provided just in time. Without accurate demand forecasts, the
company will have to store excessive parts in advance, adversely
affecting the efficiency of stock management. Currently, there
are some 5.83 million European consumers who drive Hyundai or Kia
vehicles.
The new system integrates order data from regions and distribution
centres and monitors the overs and shorts of inventories. Based
on the system, Hyundai can automatically supply locally produced
parts to centres that have low inventory and transfer excessive
stocks to other areas.
Moreover, the duration of time needed to deliver requested parts
will be reduced by six days to seven from the current 13 days
under the new comprehensive management system. It can also cut
inventory holding periods by 20 percent as it doesn’t have to
secure stocks in advance due to the automatic replenishment
system.
Hyundai plans to establish the new system in Alabama of North
America as well after it stabilizes the system in Europe. The
company recently completed the construction of its central
distribution centre with a total area of 56,000 square meters in
Beringen, Belgium, and invited the best overseas dealers to hold
a conference to improve the service quality, making every effort
to boost customer satisfaction for Hyundai-Kia Motors.
22 | P a g e
 QUALITY MANAGEMENT
A quality management system (QMS) is defined as a formalized

system that documents processes, procedures, and responsibilities
for achieving quality policies and objectives
23 | P a g e
Main Activity of Quality Management

Hyundai Engineering's quality management control is set to provide
our customers with the best products and services. To achieve this,
we carry out quality planning, quality control and quality
improvement activities.
At Hyundai, high quality and customer satisfaction are always at
the forefront. That’s why all our processes have been controlled
many times since buying parts. Even the slightest mistake must
not be overlooked.
In order to declare our quality publicly, we have built a quality
management system, which also includes intensive care for the
health and safety of employees.
The quality of our production is evidenced by the obtained
certificates and awards. Six Tips to Help the Automotive Industry
Improve Quality and Reduce Recalls
1. Create a culture of quality.
2. Work with suppliers.
3. Use technology to connect the supply chain.
4. Demand more than an inspection report.
5. Leverage manufacturing intelligence.
6. Drill down through data to reduce warranty claims and
recalls.
24 | P a g e
 SUPPLY CHAIN MANAGEMENT
Supply chain management is concerned with the management of

upstream and downstream interactions and activities between
various entities/organizations in order to maximize the value
creation for the benefit of the customer (Christopher, 2005).
Globalization has resulted in supply chains crossing international
borders thus leading to greater exposure to disruptive risks.
Hyundai Motors is an automaker with a strong global presence. Its

supply chain entities, from manufacturing to retail, include
external suppliers; plants manufacturing intermediate and/or
finished products; distribution centers; demand zones; and
transportation assets.
Between 20th June and 6th August 2003, there was a major disruption
in the company’s ability to deliver passenger cars to its
customers due to a labor strike at its biggest production plant.
Although labor strikes are highly probable, the duration of this
strike (47days) was highly unforeseen. The timing was also
critical as the labor union targeted the strike at a time when
domestic sales were expected to rise due to newly implemented
excise-tax cuts for new car buyers by the Korean Government. The
impact of the disruption was thus highly significant; a staggering
$1.1billion in lost sales together with other unquantifiable
losses, as a result of the inability of the supply network to
remain completely resolute during the strike.
25 | P a g e
Global Operations
As of 2003, Hyundai Motor Company (HMC) was the seventh-largest
automobile manufacturer in the world in terms of volume. HMC had
3 manufacturing plants and 8 CKD assembly plants. Hyundai’s target
markets were classified into 3 types: advanced; emerging; and
developing markets. The company located manufacturing plants in
emerging markets such as China and India, in order to meet growing
domestic demand as well as take advantage of relatively low labor
costs in the countries.
HMC however did not have any manufacturing plants in the advanced
markets but relied on imports to meet demands in the zones. In
order to compete with established automotive manufacturers in the
advanced markets, especially the United States of America, HMC
focussed its strategy on improving quality and maintaining low
costs using TQM and supply chain strategies such as just in time
and assembly postponement
HMC operated the largest integrated automobile plant in the world,

the Ulsan plant located in South Korea, with an output of about
1.6 million units annually, in form of cars and Completely
Knockdown (CKD) kits. The plant had a co-located privately owned
port which made export convenient. In order to respond quickly to
specific customer demands, at minimal costs, Hyundai practices
JIT and holds a limited finished goods inventory of not more than
7days, at its plants and distribution center. Delivery lead time
for export vehicles was 45days with a shipping lead time of 30days
(Hahn et al., 2000).
Importing passenger cars into European Union (EU) was relatively

easy because as of 2003, the 15 members and 10 aspiring members
of the EU shared import and export policies and thus had no local
content regulations on car imports.
Turkey was chosen as a location for the CKD plant to supply Western
Europe because of its low labor costs and surface transport links
to Western European countries.
The other CKD plant supplying European nations was located in

Russia, a non-EU member which probably had its own peculiar
automotive import regulations. However, due to domestic demand
opportunities in Russia, its influence, and available
transportation links to other landlocked Eastern European
countries; it was a good choice to locate a CKD plant.
The Korean plants produced CKD kits which were exported to the
Russian and Turkish assembly plants. This supply strategy meant
freight charges and other logistics costs were reduced by:
producing whole cars in form of parts and modules in Korea;
shipping to CKD plants located in Europe, assembling based on
customer demands in Europe, and distributing assembled cars,
mainly via surface transport, to the customers around Europe.
However, the dependence on the Ulsan plant as the only plant

capable of supplying passenger car CKD kits to the Turkish and
26 | P a g e
Russian plants, which were responsible for supplying the European

market, had a major risk inherent, as would be shown
subsequently.Changes in European Union’s import & export policies;
Terrorist attacks;Grouping the disruptive events into the
vulnerability matrix shown below would help to prioritize
resilience strategies to the high severity disruptions. However,
the low severity events are not entirely ignored. For instance,
dispatch errors at the Ulsan port are operational risks that can
be managed by actions such as introducing RFID while political
instability can be managed through the maintenance of good
relationships with the Government.
Steps for making supply networks resilient against high severity

disruptions
o Identify nodes with high impact disruptive risks

o Identify the probability of occurrence of the disruption
o Select Degree of flexibility: Higher degrees of
flexibility would be required for high probability risks,
while lower degrees of flexibility would be required for
low probability risks.
Hyundai’s European Supply Network’s Resilience

Redundancy: Excess resources were used reactively by Hyundai to
maintain operations while the disruption lasted and also to
subsequently recover.
Speed of recovery: As shown in figure 4.2, Hyundai’s monthly sales
grew speedily within 1-3 months after the disruption ended. The
following inferences/ assumptions are made about how this was
achieved:
o Hyundai’s redundant production capacity at its plants

aided the speed of recovery. The plants must have used
production ramp-up strategies to increase output.
o The logistics of the CKD kits away from the plants were
enhanced by the co-located shipping port. It is assumed
that some CKD kits were flown by air to the CKD plants.
o Management at the Ulsan plant had visibility and control
over the entire supply network. This aided the
coordination of expedited international logistics of the
cars to the customers.
Although excess resources proved to be a useful resilience
strategy, it can be quite expensive. Moreover, as observed, the
extent of the disruption was difficult to predict and eventually
resulted in the complete depletion of some inventories.
On the other hand, appropriate levels of redundancy combined with

appropriate levels of supply chain flexibility are believed to
enable organizations to not only cope with unanticipated events
but also improve normal operations efficiency while providing the
opportunity to utilize disruptions to gain a competitive advantage
27 | P a g e
( Sheffi & Rice, 2005; Fawcett et al., 1996; and Skipper & Hanna,
2009).
Hyundai’s European supply network however lacked the required

flexibility because of its dependence on the Korean plants for
CKD kits. A major supply chain redesign (as suggested by the
framework), is thus required to mitigate the impact and/ or ensure
business continuity in the event of the occurrence of these types
of high severity disruptions
THE ROBUST SUPPLY CHAIN

Combining the manufacturing, assembly, and distribution nodes
would give the new supply chain design shown below.
o Testing the New Supply Chain

o Scenario
o Manufacturing
o Assembly [Effect]
o Distribution
o Labour strike at Korean plant [closure of Korean plant]
o Ramp up manufacturing at Indian plant [strain on Indian
plant’s resources to supply both Turkey and Russia CKDs]
o Turkish and Russian plants operate as usual [little or no
impact]
o EU distributions operate as usual [little or no impact]
o Earthquake at Turkey [closure of Turkish CKD plant]
o Indian and Korean plants operate as usual, but supply all
CKD kits to Russian CKD plants
o Ramp up assembly operations at Russian CKD
o [Strain on Russian plants resources to Supply passenger cars
to Western European countries]
o EU distribution operates as normal [little or no impact]
o Sudden demand growth in France with simultaneous drop in
Portuguese demand
o Indian and Korean plants operate as usual
o Turkish and Russian plants operate as usual [little or no
impact]
o Portuguese distribution center re- routes supply to French
retailers.
SOURCES OF COMPETITIVE ADVANTAGE
The robustness of manufacturing, assembly, and distribution would
help the supply chain matches demand more responsively. This would
lead to a reduction in inventory holdings and the Flexibility to
customize to customer requirements is enhanced.
Recommendations (Business Continuity)
28 | P a g e
Hyundai should develop contingency plans for each of the

identified risks. The major flexibility and redundant resources
available in the supply network would need to be coordinated for
the supply chain to remain resilient in the event of a major
disruption.
Also, the supply chain proposed is for short-term implementation.

To build resilience in the long term Hyundai would need to build
a facility in the EU and depending on demand.
 PRODUCT DESIGN
The company has established a reputation for quality,

craftsmanship, and reliability, and regularly wins praise in
Europe for its unique Five Year Unlimited Mileage Warranty. But
the main reason customers choose Hyundai cars is design.
Hyundai Motor’s innovative vehicle designs are based on a

principle called “Sensuous Sportiness”. By ensuring that we
maximize people’s emotional values in harmony with a rigorous
sense of proportion, structure, styling, and technology, we
produce cars that meet and usually exceed, even the most demanding
aesthetic choices of our customers.
Factors of design
A prime example of this method of conceptualizing a vehicle’s

design is found in the Hyundai Motor “Cascading Grille,” which
can be interpreted as being a reflection of the pride and
confidence that we take in our vehicles. The design was inspired
by the flow of molten metal contained within a blast furnace when
combined with the elegant lines of classical Korean pottery. The
way that it narrows downwards to create a sense of power and speed
is especially noteworthy. We plan to apply the Cascading Grille
to all our vehicles going forward, beginning with our new i30 and
Grandeur IG models.
Innovation by design
In line with Hyundai’s “Sensuous Sportiness” design philosophy,

the new concept embodies a beautiful silhouette accentuated by
graceful curves flowing over broad rear flanks that provide
excellent aerodynamics. The boat-tail line is complemented by
pixel lamp taillights. ‘Prophecy’ does not follow trends. It
accentuates timeless beauty that will stand the test of time. The
name “Prophecy” reflects the concept’s purpose, defining the
direction of future Hyundai designs while establishing itself as
a design icon for Hyundai’s EV lineup. The visionary concept is
expanding on the era-defining example set by last year’s “45”
concept EV with its clean lines and minimalistic structures. The
application of Hyundai’s Sensuous Sportiness design philosophy is
evident in the voluptuous side section which is cut by a clean
and simple One Curve streamline. This underlines the timelessness
29 | P a g e
of its design. Furthermore, the design provides excellent

aerodynamics, a characteristic indispensable to EVs. The propeller
shapes embedded in the vehicle’s wheel compel air to be drawn in
and flow down the side of the body like water over a stone. The
rear spoiler complements this effect by harnessing downforce that
aids vehicle stability. The transparent acrylic material provides
a clear view of the functional components inside. This intentional
design feature is calling attention to the functional beauty of
the components. Prophecy’s identity as an EV extends to the
underbody where a wide air intake takes fresh air to cool the
batteries more effectively. The interior of “Prophecy” is not a
conventional automotive interior but a lifestyle space of
refinement and comfort which provides customers with a warm
welcome. “Prophecy” also utilizes autonomous driving technology.
Instead of a steering wheel, joysticks provide a completely new
driving experience. Design changes that have been enabled by the
use of joysticks offer more visual freedom to passengers. In a
comfortable position, all that the passengers see is the
horizontal pillar-to-pillar display and are able to enjoy the
content shown on the display. The name “Prophecy” reflects the
concept’s purpose, as it signifies a bright future for both
Hyundai’s designs as well as innovative mobility solutions for
the EV customers of tomorrow.
Vision
Vision T Hybrid Plug-in SUV Concept is an innovative, eco-focused,

compact SUV design with functional dynamism as a core concept
vision. The Vision T is the seventh in a series of Hyundai Design
Center concepts expressing Hyundai’s evolving Sensuous Sportiness
global design language.
We pursue innovative solutions in design and add emotional value

to our product experience through sensuous sporty design language.
The SUV concept is powered by a plug-in hybrid powertrain

indicating its eco-lifestyle focus and inherent balance with the
environment in which it is driven. Guided by Hyundai’s Sensuous
Sportiness design principle, Vision T design themes revolve around
the concept of Dynamism and as such, the Vision T Concept aspires
to be on the cutting edge of the most dynamic SUV designs. It is
a vision of the new urban adventurer SUV design direction.
Two derivative sub-themes of the dynamism fundamental design

concept are Parametric Fantasy and Transcendent Connectivity.
Charisma is added with the evolution of a Hidden Signature Lamp
derived from the Le Fil Rouge and Grandeur Face Lift. When the
powertrain is started, the dark-chrome matte hue of the integrated
hidden signature headlamp system features a half-mirror system
that has a chromium appearance, which transforms into functional
lighting on demand. Hyundai designers elevated the appeal of
luminous parametric design through hidden DRLs, while the hidden
signature lamp represents the next generation of this Hyundai
design innovation.
30 | P a g e
The Vision T charging port is located on the passenger side rear

quarter panel and features a sliding cover. When charging, “Blue
Drive” is illuminated, indicating the system is actively charging.
The battery state of charge is also visually indicated externally
in a metered, circular light cluster, creating a complete circle
appearance when fully charged.
The advent of smart cars
The age of smart cars is approaching fast as automobiles are

increasingly making full use of electronic technology
developments. There are already cars out there which can drive
themselves, automatically adjust speed, and manoeuvre into the
hard shoulder in emergency situations.
Smart Traffic Jam Assist
In stop-and-go traffic, Traffic Jam Assist monitors the road ahead

with steering assist control and automatically maintains a safe
distance behind the car in front, accelerating and decelerating
as traffic allows at a steady speed.
Night View
The advanced feature of the real-time camera display provides the

driver with optimized road visibility and enhanced safety for
night time driving conditions.
Highway Driving Assist
Designed to enhance the driving support system, Highway Driving

Assist System integrates longitudinal and lateral control for the
speed range under 150kph and assists driver steering while keeping
the vehicle at a safe distance with Advanced Smart Cruise Control
(ASCC) for a more efficient and safer driving on a highway.
Driver State Monitoring
Driver State Monitoring system monitors any signs of driver’s

drowsiness, fatigue, or distraction to effectively protect the
driver from dangerous situations by triggering an alarm at an
appropriate time.
Remote Parking Assist System
Without a driver in the vehicle, parallel and diagonal parking

can be completed with a single smart key. With automated steering,
braking, and changing direction aid system, the vehicle finishes
parking itself while the driver pushes a single smart key button.
31 | P a g e
Smart Blind Spot Detection
Warns the driver and actively controls the vehicle when the
possibility of a lateral collision accident is higher than the
threshold.
Augmented Reality
New integration of real camera footage enables 3D Navigation for

a better driving experience.
Motion Recognition
Hyundai’s latest three-dimensional hand gesture recognition gives

the driver greater control of multiple features. Developed from
the first Haptic Steering Wheel Switch in 2012, the driver can
take greater control of multiple features at the same time with
the latest three-dimensional hand gesture recognition.
 CONCLUSION
In this assignment, we have done a deep dive to understand the

scope of operations management. We have seen the history of the
company and how the company handles various factions of operations
management. An inference to be understood from each of the
factions is that they are all interlinked to each other. Any
disruption in any of the operations would result in a disruption
in the production process. Hyundai has made it a top priority to
prevent any such disruption by making IT and automation as its
stronghold and investing in more state-of-the-art technology to
stay ahead in times.
32 | P a g e

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ASSIGNMENT

S.No NAME Reg.No.

1 Aarcha Ann 37220001

S.No. CONTENT P.No.

We have decided to select ‘Hyundai Motor Company’ as the

The 9 scopes of Operation Management include the following:

 HISTORY OF HYUNDAI MOTOR COMPANY

But it hasn’t evolved merely for the sake of evolution. Rather,

people and provide quality time to its customers. We all know

Following so quickly on the heels of the last major war, it

The Pony wasn’t just a one-time wonder. Manufactured in Korea,

South Korean market, it was a bit more difficult to please

Executives quickly realized they would have to focus on

An artistic vision and philosophy are integral to the success of

Hyundai Motor’s efforts to seek a unique design identity resulted

nature, River Stone captures the essence of Hyundai Motor Design.

Hyundai Motor’s R&D activities are devoted to capturing the

Hyundai Motor offers its customers a wide range of exciting and

Their commitment to service innovation has been so highly-regarded

Hyundai Motor’s BLUE-DRIVE strategy is leading the search for eco-

Hyundai Motor launched its Project IONIQ innovation-incubating

Hyundai Motor opened its Project IONIQ Lab in partnership with

Four key features of PROJECT IONIQ

Hyundai Motor Company announced an updated roadmap for its future

in 2019—as well as H2 Solution, the addition of which reflects

Hyundai Motor’s updated strategy aims to achieve three major

At the forum, company executives, including Albert Biermann,

Updated Strategy 2025

Electric Vehicle (EV)

Starting with the launch of IONIQ 5 in 2021, Hyundai plans

Urban Air Mobility (UAM)

As a Smart Mobility Solution Provider, Hyundai Motor will continue

Autonomous Driving Technology

Hyundai Motor is speeding up its efforts to develop autonomous

Fuel Cell System

Hyundai today also introduced ‘HTWO’, a new brand to represent

With HTWO, Hyundai Motor is stepping up efforts for the

Through strategic partnerships with hydrogen, energy and logistics

cell system business, accelerating development of a hydrogen

Since marketing the world’s first mass-produced fuel cell electric

Under the Strategy 2025 roadmap, Hyundai disclosed updated mid-

The company also strives to enhance shareholder value through

Forecasting is the process of making predictions based on past

Hyundai Motor Company announced its 2021 global sales performance,

Sales outside of Korea rose 7 percent to 3,164,143 units thanks

Sales in Korea declined 7.7 percent to 726,838 units amid the

For December, monthly global sales totaled 334,242 units,

In 2021, Hyundai was able to jump-start its transition into

With auto demand expected to recover worldwide in 2022 amid

The company will continue implementing diverse measures to take

The monthly sales figures provided in this press release are

o Sales in Korea are based on retail sales while overseas

Capacity planning is the process of evaluating all available

An important subset of capacity planning is resource capacity

o Importance of capacity planning

Frankly, without it, we cannot be running a business efficiently.

o Factors Affecting Capacity Planning

Hyundai Motor Company(HMC) has decided to increase its production