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New trend of parts supply system in Korean automobile industry : The case of the modular production system at Hyundai motor company

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  • New trend of parts supply system in Korean automobile industry
  • Kang, Jong-Yeol
  • Seoul National University


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Title New trend of parts supply system in Korean automobile industry
Similar Titles
Sub Title

The case of the modular production system at Hyundai motor company

Material Type Articles
Author(English)

Kang, Jong-Yeol

Publisher

[Seoul, S.Korea]:Seoul National University

Date 2001
Journal Title; Vol./Issue Korean Business Journal:vol. 35(no. 2-3)
Pages 14
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Industry and Technology < Manufacturing
Industry and Technology < Others
Holding Seoul National University

Abstract

An automobile is said to be composed of about 20,000 components or parts (hereafter parts). Korean or Japanese automobile companies are outsourcing up to 70% of these parts on the basis of production cost from their outside parts suppliers. Therefore it is essential for an automobile company to establish an effective and efficient supply chain of materials in order to be competitive. Regarding the supply chain in the automobile industry, an issue which attracts our attention recently is the modular production system. It is a parts supply system where a small number of first tier suppliers (module suppliers) located at the same or very close site as the automobile assembly plant assemble modules of automobile and supply them on the same sequence in the final assembly line of the automobile assembly plant. (The rest omitted)