Quick Facts about HMMA Current Investment: $1.8 Billion Current Investment: $1.8 Billion Production Goal: 390,000 cars in 2015 Production Goal: 390,000 cars in 2015 1,550 per day (Mon-Fri) 1,550 per day (Mon-Fri) Team Members: 3,000+ Team Members: 3,000+ Plant Size: 1,744 acres Plant Size: 1,744 acres Buildings Space: Buildings Space: 3.2 million sq. ft. 3.2 million sq. ft.
2016 Hyundai Sonata
2017 Hyundai Elantra
HMMA 10 ‐ Year Anniversary May 20, 2015
3 Millionth Vehicle June 30, 2015
2014 Economic Impact Study HMMA Economic Impact 2% of state’s $4.82 billion Gross Domestic Product Supporting 38,000 full ‐ time equivalent jobs (direct & indirect) $70 million tax revenue to state $10.7 million local tax revenue Total tax revenues $80.7 million
Hyundai Motor Manufacturing Alabama “HMMA is not a plant. It is an industry.” ‐ Dr. M. Keivan Deravi Prevailing wage for maintenance jobs: Prior to HMMA: $12.50 Today: $18.00
2014 Economic Impact Study Economic Impact $4.82 billion Statewide Impact 60% of impact is from automotive assembly and parts suppliers operations 40% of impact is from retail, construction, services, etc.
2014 Economic Impact Study Economic Impact $4.82 billion Statewide Impact HMMA Impact: $3.65 billion $676 million payroll 14,452 full time jobs Suppliers Impact: $1.2 billion $691 million payroll 23,855 full time jobs
2014 Economic Impact Study Economic Impact $4.82 billion HMMA and its Montgomery County suppliers: $2.4 billion in goods and services 20% of all goods and services in the county 14,000 jobs in the county $9.6 Billion Montgomery County total gross domestic product is $12 billion
www.autooninfo.net Quality
Quality Kia, Hyundai rise … in J.D. Power quality study USATODAY / June 17, 2015 The twin South Korean brands, Kia and Hyundai, have moved to the top of the pack in the 2015 J.D. Power and Associates Initial Quality Study released Wednesday, the most closely watched gauge of quality in auto manufacturing. The Kia brand ranked second behind the top brand, Porsche, which took first for the third year in a row. And the Hyundai brand moved up to fourth place, right behind third ‐ place Jaguar. Both Kia and Hyundai are owned by the same company, Hyundai.
What is Quality?
Quality Quality
Luxury! Trust! Safety! No Problems! Quality
Quality Definition Merriam Webster “ quality is a general term applicable to any trait or characteristic whether individual or generic <material with a silky quality >. property implies a characteristic that belongs to a thing's essential nature and may be used to describe a type or species”
Quality What determines the Quality Level ? Quality level of the plant… It is determined by the worst performer… Capacity of the tub ... - It is decided by the shortest board
Quality HMMA Over Eighty Tier 1 suppliers • U.S.A. • Canada • Mexico • Korea • More…
Reduce quality gap between makers… North America 1 st 1 st Best Lexus Lexus (216pts) (68 pts) 117 pts Vehicle Dependability Study 5 times↓ 5 times↓ 35 th 597 pts Mini (185 pts) Worst 35 th KIA (813pts) ’2000 VDS ’2014 VDS Quality as a Differentiator Quality as a Given Minor problems also impact the quality ranking
Quality Reason for Producing Defect-Free Vehicles Loyalty gap Brand loyalty of automobile owners is more sensitive than other industries. Automobiles sales are an extremely competitive market.
Quality Bad Quality... Negative impact on Sales Customer Dissatisfaction Study Tell it to 6 % 8 % Dissatisfied Directly protest against 1 person company customer 8 % 31 % 2 persons Bad word-of-mouth and gossip (friends & family) 78 % 3~5 persons 63 % Keep silent but never buy again 6 % More than 6 persons * Source : U.S. shoppers (1,186 persons)
Story of Dad’s 1993 vehicle Quality
Story of Dad’s 1993 vehicle Quality
Story of Dad’s 1993 vehicle Quality
Quality Autonomous Vehicles Tim Cook , Apple CEO Car Industry Ready for “Massive Change” (Oct. 2015) "We'll see what we do in the future," he said, adding " I do think that industry is at an inflection point for massive change. Not just an evolutionary change.“ Apple wants people to have an “iPhone experience ” in their car.
Quality Autonomous Vehicles John Krafcik, Google Head of Google’s Automotive Unit Wealth of automotive experience: • Ford executive • Former CEO Hyundai Automotive America • Ford and Google teaming up
Quality Autonomous Vehicles Obama Administration Proposed 10 ‐ year $4 billion (January 14, 2016 Reasons: • Minimize road accidents / fatalities Minimize traffic / congestion •
Quality Safety Hyundai Sonata Adaptive Cruise Control
Safety Hyundai Elantra Blind Spot Detection • • Rear Cross Traffic Alert • Lane Change Assist
Quality Safety Hyundai Elantra Lane Keep Assist •
Safety Hyundai Elantra 7 Airbags •
Safety Quality
The root cause of Titanic’s Doom Titanic’s Doom (in 1912) Quality
Quality Titanic’s Doom (in 1912) - April 15. 2008 - ... the builder of the Titanic struggled for years to obtain enough good rivets and riveters and ultimately settled on faulty materials that doomed the ship... Small forges tended to have less skill and experience… These small rivets were the main cause of Titanic’s doom. Many of the rivets studied by the scientists were found to be riddled with high concentrations of slag. A glassy residue of smelting, slag can make rivets brittle and prone to fracture… Samples of four different types of rivets recovered from the Titanic. While some ships of the time were built entirely with steel rivets, the Titanic used a mix of steel and iron rivets. In the bow, where the Titanic hit the iceberg, weaker iron rivets were used...
Quality
Quality Inflection Point " I do think that (automotive) industry is at an inflection point for massive change.” – Tim Cook (Apple CEO)
Quality
Quality Suppliers Ubuntu “How can we be happy when others are sad?” • Work with your suppliers. • Ask them how you can help. • Educate your suppliers (salary and hourly workforce).
Quality Quality marches on. 감사합니다 (Thank You)
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