Supply-chain synchronization: Lessons from Hyundai Motor Company

Supply-chain synchronization: Lessons from Hyundai Motor Company

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Article ID: iaor20012234
Country: United States
Volume: 30
Issue: 4
Start Page Number: 32
End Page Number: 45
Publication Date: Jul 2000
Journal: Interfaces
Authors: , ,
Keywords: scheduling, planning
Abstract:

One of the challenges of supply-chain management is developing ways to effectively integrate activities across organizations on the supply chain. Hyundai Motor Company developed mechanisms to coordinate production planning and scheduling activities among supply-chain members. Hyundai Motor's production-and-sales-control (P/SC) department uses regularly scheduled cross-functional meetings and scheduling policies to coordinate supply-chain activities. When implementing this process, the P/SC department overcame structural, environmental, and behavioral problems. Although Hyundai management concedes that the process is not perfect, communication among supply-chain members has improved, and the P/SC group has successfully promoted mutual understanding and respect among functional areas. The primary benefit, ultimately, is improved customer satisfaction through better integration of functional activities.

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