Hyundai: Operations Management Analysis and Process Improvement

This report provides an in-depth analysis of operations management at Hyundai, a prominent South Korean automotive manufacturer. It begins with an executive summary and an introduction emphasizing the importance of operations management in aligning business processes to meet customer needs. The report examines Hyundai's operations, including financial management, conflict mitigation, and employee management. A process chart illustrating Hyundai's customer service process is presented. Inventory management and the application of lean management principles are also discussed. Furthermore, the report assesses Hyundai's capacity management and concludes with recommendations for continued success in the global automotive market, including an analysis of the external environment. The report underscores the role of the operations manager in linking operational areas to meet customer demands and ensure customer satisfaction.

Running head: OPERATIONS MANAGEMENT
Operations management
Name of the student
Name of the university
Author’s note

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Executive summary
The report is on the development of operations management and the manner in which the
organisations can afford to control the processes by utilising its operational facilities. The
focus is on Hyundai, a South Korean automotive manufacturer. The report analyses the
operations management undertaken by Hyundai and the role-played by the operations
manager of Hyundai. The focus of the report is to provide a process chart, which helps in
gaining a pictorial understanding of the development of the customer service process at
Hyundai. At the same time, the inventory management of Hyundai is also analysed to
understand it in a proper manner. The importance of lean management is provided for
Hyundai along with the analysis of the capacity management possessed by Hyundai. Certain
recommendations based on the findings such as analysis of the external environment are
provided so that Hyundai can continue to be a leader in the international industry.

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Table of Contents
Introduction................................................................................................................................3
Part A.........................................................................................................................................4
i) Operations management......................................................................................................4
ii) Process management..........................................................................................................9
iii) Lean management...........................................................................................................14
Part B........................................................................................................................................18
i) Capacity management.......................................................................................................18
Part C........................................................................................................................................21
Conclusion and recommendation.........................................................................................21
Bibliography.............................................................................................................................25

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Introduction
In a corporate organisation marketing of is considered as important which are based
on the needs and expectations of the customers. Therefore, Spring et al. (2017) is of the
opinion that operations management in every organisation are important role for ensuring
proper alignment within the business operations is made which helps to meet the
requirements of the customers. In the words of Wamba et al. (2018) the operations
management is different in every organisation and it consists of three stages mainly at the
tactical, strategic and operational levels. In the present scenario, the adopted process by every
organisation depends on the capacity level of each of the operations managers while trying to
align the operations associated with every department such as human resource, marketing, IT
and finance. The supply chain management is also considered under this particular process.
According to Musalem et al. (2017), the needs of the customers are different and are
subjected to changes. Thus, the duty of every operations manager in business organisations is
aimed at linking the different operational areas with factors that are required for maintaining
the operations of an entire organisation. It is undertaken to meet the needs and demands of
the customers. Hence, it is necessary to align the operations that are not feasible based on
requirements of the customers.
According to Boscari et al. (2018), the opinion for evaluating the operational
management helps in gaining ideas about the actions taken in each organisation and can
remain concerned with the requirements of the customers It is the duty of the managers to
undertake the employment of the operations management. This is done by making
consultation based on the requirements of the organisational and the industry standards.
Glock et al. (2018) has provided evidence about the standards maintained in an industry,
which constitutes the standards of every operation, are followed by multiple companies, in an

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organisation. This research focuses on the erstwhile operations management of a company
and is matches it against the industry standards.
The purpose of the research is for providing a description about the importance and
implementation of operational management in large multinational companies. The application
helps to maintain the satisfaction of the customers that are usually based on the products,
which are manufactured and served by the organisations. The company in focus is Hyundai, a
popular automobile manufacturing and designing company that is located in South Korea.
Hyundai is a leading South Korean multinational automobile manufacturing company,
which deals in the developing branded automobiles in the world. Hyundai was founded in
1967 and is a public company that is aimed at providing various designer automobiles to the
customers. The revenue generated by Hyundai is about ₩ 93.469 trillion and the employee
strength of Hyundai is about 104,731. The products that are manufactured by Hyundai
include the luxury cars, general automobile, automobile equipments and so on. Apart from
South Korea, the popularity of Hyundai is spread across the world and has outlets in major
parts of Asia, UK and the USA (Hyundai.com 2019).
Part A
i) Operations management
Hyundai is the largest automobile manufacturers in the world and the operating
functions of the organisation need to be based on the recent changes that exist in the business
world (Hyundai.com 2019). The operation functions adopted by Hyundai is characterised
with the evidence that Hyundai plays an important role for the development of the business
process so that it can make expansion in the product line of Hyundai (Hyundai.com 2019). In
the words of Chan et al. (2017), the biggest operating functions of Hyundai undertake the

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evidence based on evidence that Hyundai aims for the development of its financial condition
in an effective manner. Hence, the financial condition of Hyundai can be characterised with
the fact that Hyundai tries to ensure the intake of proper revenue so that management of
innovative strategies can take place at its stores (Hyundai.com 2019).
Along with this, it can be evidenced that the modern practise of Hyundai can be based
on the manufacturing of innovative and branded automobile that help in the development and
promotion of automobile (Hyundai.com 2019). Hyundai have improved significantly on the
business development and have made expansion in countries across the world with its
designer cars (Hyundai.com 2019). Hence, the current operational practise undertaken by
Hyundai can be characterised by the fact that Hyundai manages to develop its automobile
based on the requirements of the people (Hyundai.com 2019). For example, customers may
demand to purchase luxurious automobile and thus, the manager of Hyundai need to fulfil the
demand to gain competitive advantage in Hyundai (Hyundai.com 2019).
Opinion of Heizer (2016) states that customer satisfaction is an important factor,
which can assist in organisational growth Therefore, it can be said that operations function of
Hyundai comprises of understanding the needs and requirements of the customers and based
on its various next strategies are development that helps in its growth.. In the case of
Hyundai, the demand made by the customers from all across the world needs to be fulfilled in
order to gain satisfaction.
Hence, proper financial management needs to be undertaken so that Hyundai can
continue to develop its operations in the market by engaging in planning as well as
controlling the manufacturing and production activities. Therefore, evidence highlights the
fact that Hyundai can gain success, by developing its raw materials so that excellent

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automobiles can be manufactured, which can be considered as a valuable goods and service
(Hyundai.com 2019).
Therefore, an analysis can be made about the role of an operations manager while
trying to link the present practise of Hyundai with that of the standard practise that is
followed in the automobile manufacturing industry (Hyundai.com 2019). The focus is on the
comparison between the duties of the current operations manager at Hyundai that aims to
understand the current practises, which are encouraged, by the managers (Hyundai.com
2019).
Scrutinise the financial information: Overseeing of the financial information can be
important for the operations manager mainly since the monitoring of the financial conditions
is required for preventing the departments from indulging in overspending of the products. As
suggested by Orzen and Bell (2016) the financial information that is related to business
require to be managed based on the evidence that cost benefit analysis can help in the
management processes at Hyundai. Hence, for Hyundai the financial information can be
considered as important role for the organisation development (Hyundai.com 2019).
Mitigate conflicts: It is considered as the duty of the managers of Hyundai to resolve
the various types of conflicts that can exist in the department of Hyundai (Hyundai.com
2019). At Hyundai the operations managers try to manage and maintain unity between the
different departments and stores associated with Hyundai to ensure that conflict of interest
does not exist at the workplace (Hyundai.com 2019). This can be termed as useful as
Hyundai can deal with the different stores across different countries.
Encourage development of a big picture perspective: The mangers of Hyundai are
responsible for maintaining the overall wellbeing of the operations of a company
(Hyundai.com 2019). In the words of Knoppen et al. (2015), the perspective takes into

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consideration the demands and expectations of the customers. The managers critically
consider the process so that an analysis of the current situation of the organisation can be
made (Hyundai.com 2019). Thus, the decisions undertake by the managers of Hyundai
usually account for the best interest of Hyundai.
Monitor the full process: At Hyundai, the supervision of the operations process needs
to be done by using proper authorities so that mitigation of the failure can be done in the
departments of the company (Hyundai.com 2019). The operations manager need to develop
the inventories in a manner so that it can ensure the distribution to the customers is
successfully completed. It has been observed by Magon et al. (2018), that employee
satisfaction can be made as specific based on the adoption of a single process, in an entire
organisation.
Manage work and employees: Hyundai need to manage the employees and the work
continuation model based on the staffing requirements of the company (Hyundai.com 2019).
The operations management need to be developed by collaborating with the HR managers
while recruiting the employees so that effective work process can take place. In the case of
Hyundai, the work environment and the employees contribute to its success (Hyundai.com
2019).
Monitor the inventory and supply chain: Turkulainen, Kauppi and Nermes (2017)
stated that the supervision of the inventories which can be associated with the supply chain
management need to be done based on managing, tracking and developing the inventories
within the organisations. In the case of Hyundai, the development of the inventory needs to
be done to conduct a steady supply chain management, which is based on the service
management that is owned by Hyundai for continuous development of its practises
(Hyundai.com 2019).

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From analysing the role of the operations managers, the Hyundai does not have any
issue related with the operating managers. The lack of key issue in Hyundai indicates the well
developed functioning it consists.

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Customers purchase from
Hyundai showroom
Direct interaction between
the sellers and the
customers
Marketing department provides
information about the customers
Customer requirements are
communicated
N
YN
Production of branded
automobile as per customer
needs
Requirements of the
customers are provided
before the managers
Price set by the
managers of
Hyundai
Gathering customer feedback for development
Inventory management
Storage
Order placed to the company
Inventory is checked to identify if the custome
Hyundai provides approval for meeting the requirements and approval of budgets
OPERATIONS MANAGEMENT
ii) Process management

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Figure: Process chart of Hyundai
(Source: Hyundai.com 2019)
Process analysis and improvement: Schönsleben (2016) stated that the process
analysis can b done on a regular basis, which can help a company to make related changes
based on the development of its supply chain process along with the manufacturing process.
The analysis of the process chart of Hyundai helps in the continuation of the business
process. It is necessary that Hyundai follow the development of its business practises so that
analysis and improvement of the automobiles can be done on a regular basis (Hyundai.com
2019).
Hence, an improvement in the process can be made to ensure that Hyundai continue
with the development of its process that is based on the flaws identified (Hyundai.com 2019).
For example, it is necessary to check the inventory so that Hyundai can ensure the
improvement of the process required for the smooth functioning of the organisation
(Hyundai.com 2019). The suggestion for improvement can be for maintaining of proper
checklist so the managers of Hyundai can ensure that the requirements of the customers are
met (Hyundai.com 2019).
For example it can be seen that the facilitates required by Hyundai to analyse its
inventory and the rate at which it is checked can ensure quality production of the branded
automobile which are based as per the requirements of the customers (Hyundai.com 2019).
Hyundai need to continue and develop its composure in the business process while trying to
improve the monitoring process for making the creating a flexible process chart
(Hyundai.com 2019). The analysis is conducted by seeking help of the operations manager
and the HR managers of Hyundai can so that satisfaction of the demands of the customers can
be made (Hyundai.com 2019).

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Customer service strategies: In the case of Hyundai, the customer satisfaction can be
considered as an important factor, which helps in understanding Hyundai, and assists in the
development of profit (Hyundai.com 2019). According to Shalley and Gilson (2017), the
customer service strategies are plan of action that is formulated to ensure that every customer
remain satisfied. Hence, the strategies undertaken by Hyundai, which helps Hyundai in its
development, include:
Personalise the experience: According to Miv and Perakis (2019), it is essential to
provide customers with a personalised experience so that loyalty of the products can be
maintained. Every personal customer experience needs to be provided by ensuring regular
conversation is maintained via emails or via notifications while launching of new car in the
market. Hyundai also can make personal calls to the customers or provide text messages to
convey similar information (Hyundai.com 2019).
Select the correct tools: Hyundai can employ people for every corner in the
department stores to provide proper guidance that can be related to the characteristics of the
branded automobile (Hyundai.com 2019) Hyundai need to ensure that correct tools and
techniques are used for developing excellent customer services (Hyundai.com 2019).
Ensure development of an optimised training programme: Jabbour and de Jabbour
(2016) is of the opinion that proper training is required so that every employees can include
behavioural lessons for proper treatment of the customers which assist in the creation of
effective bonding with the customers. In the words of Kenworthy and Balakrishnan (2016),
agreed that customer satisfaction is dependent on the services provided by a company. It is
based on the products and the quality of the behaviour undertaken by the employees.
Inventory management: Li et al. (2016) is of the opinion that management of the
inventory can be considered as an important feature of supply chain management since it