Hyundai’s Adoption of Toyota Production System

Toyota Production system has played a monumental role in the transformation of the motor industry especially in regards to quality and efficiency of the production process. TPS propelled Toyota to world leading position competing with established firms.

The paper will focus on how Hyundai adopted the TPS for quality improvement.

Background

focuses on the start of Hyundai and the adoption of TPD with a focus on process improvement and development of a competitive advantage.

Reasons for Hyundai’s Rise in the Global Market

The basis for Hyundai’s rise in domestic and global market is attributed to increased demand (Lee & Jo, 2007).

Other reasons were the adoption of TPS in its production lines and subsequent implementation of the system in the second and third production assemblies.

How Hyundai Improved Processes

Computerized inventory management and implementation of Just in Time allowed for improved efficiency and cost efficiency of Hyundai augmenting competitive advantage.

Hyundai also succeeded in improving quality hence global performance through introducing Material Requirement Planning and Value Added Networks (Swamidass, 2007).

Development of Hyundai Production System Helped Improve Quality

Hyundai developed an automated plant in Asan replicating Toyota’s Miyata Plant improving efficiency and augmented sequential production

Adopted multidimensional production management improved processes and promoted high quality control

Focused more on engineering and technology for process improvement and quality control

Conclusion

Hyundai began its quality improvement efforts by emulating and adopting the Toyota Production system but later leveraged on this understanding, technology, and a close understanding of its working environment to develop the HPS that has made the company very successful. The case shows the importance of continuous quality improvement owing to the growth of a small South Korean company to a major global player.

References

Lee, B. H., & Jo, H. J. (2007). The mutation of the Toyota Production System: adapting. International Journal of Production Research, 3665–3679.

Swamidass, P. M. (2007). The effect of TPS on US manufacturing during 1981–1998: inventory. International Journal of Production Research, 3763–3778.