An Overview of Hyundai Motor’s Production System

Hyung Je Jo (), Jun Ho Jeong () and Chulsik Kim ()
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Hyung Je Jo: University of Ulsan
Jun Ho Jeong: Kangwon National University
Chulsik Kim: The Academy of Korean Studies

Chapter Chapter 2 in Agile Against Lean, 2023, pp 65-116 from Springer

Abstract: Abstract This chapter analyzes the key characteristics of Hyundai Motor’s production system and provides more of a broad outline from a macro-institutional and micro perspective through a comparison of Hyundai Motor and Toyota. Hyundai Motor has been able to escape from the ‘middle-ranked carmakers trap’ that it faced since the 1990s through benchmarking Germany’s modularization of parts sourcing and running of a large pilot center. The company has built up dynamic capabilities through engineer-centered ‘learning by improvisation’ and has made a bold investment in flexible automation and informatization to pursue a profit strategy of flexible scale and diversity. In addition, extended quasi-vertical integration has allowed Hyundai Motor to enjoy internal and external economies of scale through just-in-sequence-based modularization, and the company has aggressively launched overseas green-field production.

Keywords: Middle-ranked carmaker’s trap; Engineer-centered learning by improvisation; Flexible automation and informatization; Modularization; Overseas transplants (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-99-2042-6_2

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DOI: 10.1007/978-981-99-2042-6_2

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