Kia Motors Organization Research Report 2022

 

S.NO	TABLE OF CONTENTS	PAGE NO.
1	INTRODUCTION	3
2	PRODUCTION	4
3	ECO-FRIENDLY MANAGEMENT FRAMEWORK	6
4	MATERIAL BALANCE IN THE AUTO MANUFACTURING PROCESS	8
5	STRUCTURE OF KIA MOTORS	14
6	INVENTORY MODELS IN OPERATION MANAGEMENT AT KIA LUCKY MOTOR CORPORATION	17
7	CAPACITY MANAGEMENT PLANING	24
8	CAPACITY MANAGEMENT STRATEGY	26
9	QUALITY MANAGEMENT	28

 

INTRODUCTION

Kia Motors launched the Kia Honda C-100 in 1961 after years of sustained efforts to develop a two-wheeled and a three-wheeled vehicle. Subsequently, it secured the capability to produce an original three-wheeled vehicle for the first time in Korea's automotive industry when it launched the Kia-Mazda K-360 in 1962.

Kia Corporation was founded in May 1944 and is Korea’s oldest manufacturer of motor vehicles. From humble origins making bicycles and motorcycles, Kia has grown – as part of the dynamic, global Hyundai-Kia Automotive Group – to become the world’s fifth largest vehicle manufacturer.

Today, Kia produces more than 1.4 million vehicles a year at 14 manufacturing and assembly operations in eight countries. These vehicles are sold and serviced through a network of more than 3,000 distributors and dealers covering 172 countries. The Corporation has more than 40,000 employees and annual revenues of more than US$17 billion.

 

 

 

 

 

 

 

 

 

 

 

PRODUCTION

·         Casting

·         Pressing

·         Engine assembly

·         Body assembly

·         Painting

·         Assembly inspection

 

·         Casting

 

Casting is a manufacturing process by which a liquid material is usually poured into a mold containing a hollow cavity of the desired shape, such as an engine cylinder block.  Engines aren’t typically originated or built at the assembly plant, but at a powertrain plant nearby. Powertrains are delivered continuously to feed the assembly lines at Kia Motors Manufacturing.

·         Pressing

First process in manufacturing car is a metal plate is pressed vertically under high pressure into the desired panel.  At KMMG, flat rolled sheet plate is cut and pressed into panels by robots and moved into a staging area for assembly.

 

·           Engine Assembly

 

Engine assembly is a process by which an engine is assembled through machining and parts.

 

·         Body Assembly

Panels made through pressing are assembled and welded into the shape of the car. A high level of precision and safety are required at this stage. This is the assembly line. Robotic arms pick the appropriate doors and panels and weld the superstructure to create a unitized body that will eventually accept interior components and powertrains.

 

·         Painting

Painting is required to protect car materials from corrosion, improve the exterior and ensure distinctiveness. KMMG has one of the most advanced technology paint lines in the country. It has very limited access to prevent against contaminants and all the employees are dressed like surgeons to promote the best quality paint.

 

·         Assembly Inspection

The car’s quality is tested on the road. After final assembly every car is driven off the assembly line and quality inspected before being shipped.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ECO-FRIENDLY MANAGEMENT FRAMEWORK

Kia announced four safety and environmental management policies as part of its mission to embed a "culture that prioritizes people and the environment."

1.      Compliance with laws and regulations related to the safe working environment

2.      Safe working environment risk minimization

3.      Minimization of environmental pollutant emission

4.      Organizational culture with built-in safety

By 2025, we aim to become a global leader in safety environment corporate culture by constructing eco-friendly business sites.

1.      Values and Vision

o    Enactment of mission, Vision and policy

2.      Strategic organizations

o    Strategies for environmental management

o    ESG council

3.      Management Systems

o    Environment KPI

o    Environmental management

o    Health and safety

o    Shared growth

o    Stakeholder collaborations

o    Sustainability reports

4.      Research &Development

o    Development and dissemination of eco-friendly vehicles

o    Improvements in fuel efficiency and emissions reduction

o    Recycling Technology Advancement

o    Clean Production Technology Development

Purchasing &Logistics

o    Green partnerships

o    Green purchasing

Production

o    Environmental friendly workplaces

o    ISO 14001, 50001 certification

o    Clean production system

o    Disclosure of environmental impact

Sales &Marketing

o    Green marketing

o    Transparent product-environmental relationship

Customer service

o    Green customer service

 

 

 

 

 

 

 

MATERIAL BALANCE IN THE AUTO MANUFACTURING PROCESS

Kia strives to build an eco-friendly production process. Through manufacturing process innovation, system updates, and recycling, we aim to reduce total input while also reducing waste, greenhouse gas emissions, and environmental pollutants. We track the amounts of resource input, waste output, and valued outcomes annually to determine the performance level and devise additional improvement plans.

Input

Water resources

6,168,016㎥

Raw materials

195,447 t

Hazardous Chemical Substances

0 t

Energy

13,600 TJ

TRI chemicals

48,954.5 t

Outcome

Press

Body

Painting

AssemblyCar production

1,142,939 units

Output

Soil

Total waste (192,247.1 t)
Landfill (10.6 t)

Air

GHG emissions (674,000 tCO₂-eq)
Air pollutants (246.07 t)
VOCs (5,967.1 t)
TRI chemicals (2,388 t)

Water

Total Discharge (4,535,347㎥)
Water Pollutants (137 t)

 Recycle

Heat recovery Recycling of Waste: 184,189.5 t

* TRI: Toxics Release Inventory

 

 

 

 

 

 

Assessment of Carbon Emissions

Kia assesses carbon emissions across all value chains.store operations).Due to the nature of the automobile industry, carbon emissions are the highest at more than 80% in the use stage (vehicle emission), followed by supply chain (including raw material production) and production process (including distribution).

Carbon Emissions

100

96

20192020

Supply

Assessment of carbon emissions by material (including raw material from suppliers) used in vehicle manufacturing:

100

100

20192020

Production

Assessment of carbon emissions based on energy consumption at domestic and foreign plants, workplaces and store operations:

100

94

20192020

Use

Assessment of carbon emissions according to sales vehicle emissions:

100

96

20192020

Logistics

Assessment of carbon emissions according to domestic and foreign vehicle transportation (ship/truck):

100

100

20192020

Disposal

Assessment of carbon emissions from vehicle disposal:

 

 

Kia shares rise after report says still scope for Apple partnership:

 

The company plans to increase the number to 360 by the end of the year, focusing on Tier II and Tier III cities. By the end of 2021, Kia will have a presence in 218 cities across the country. Kia will add 60 more mobile workshops to its existing 40 by the end of the year.

 

Shares of Hyundai Motor Co. and its subsidiary Kia went into effect earlier this year after Hyundai confirmed earlier talks with a technology company about electric vehicles, but later said they were no longer in negotiations.

The Online website Chosun Biz said on Friday Apple & Kia signed a Memorandum of Understanding (MOU) last year and agreed to continue cooperation in eight areas, including electric vehicles. Negotiations about electric vehicles have not been completely canceled, he said

Even if negotiations for the electrical car don't succeed, there are many things that may be discussed in other areas, so we are still hopeful that relationship between the 2 parties is feasible," Chosun quoted an unnamed source acquainted with the negotiations between Hyundai and Apple. as he said.

Chosen said that in addition to electric vehicles, Kia and Apple will also discuss cooperation in transportation to cover the last short distance to a destination after using "last mile" transportation, or other means of transportation. Will do have been.

 

A Hyundai Motor Group spokesman and Apple did not immediately return calls seeking comment.

 

Analysts say Hyundai's statement earlier this month that it was not in talks with Apple to develop "autonomous vehicles" left open the possibility of cooperation in other areas.

 

Kevin Yu, an analyst at best Investments and Securities, said: "The media report on the Kia-Apple collaboration does not contradict Hyundai's statement earlier this month, as it was limited to one particular thing."

 

He added, “The ‘last mile ’move mentioned in the article is similar to Kia’s plan to strengthen their automotive business, which Kia announced earlier this month on Investor Day.

 

Kia’s share price rise is very different from the wide market decline by 2.6% to 0221 GMT. About 90 of the nearly 800 beneficiaries in the KIA KOSPI.

 

Work Scope:A great place to work, and a responsible company.

 

The work culture here is very good and both the management and the employees have to follow every safety precaution. There will be safety in every aspect during the work.

 

Scope According to Revenue of Kia Motors: -

 

These figures represent Kia's earnings between fiscal years 2009 and 2020. In fiscal year 2020, Kia Motor Corporation generated revenues of approximately 59 trillion Korean won (US 52 52 billion).

And Obviously if Company Generated Good revenue They Provide Incentives, bonus and other benefits to the employee, and employee also give the 100% effort and Progress And Other side Also shareholders Get Much good amount of Dividend.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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STRUCTURE OF KIA MOTORS

Kia Corporation was founded in May 1944 and is the oldest Korean automotive company. Since its humble beginnings in manufacturing bicycles and motorcycles, Kia has grown - as part of the dynamic, global Hyundai-Kia Automotive Group - to become the world's fifth-largest automobile manufacturer.

Today, Kia manufactures more than 1.4 million vehicles a year in 14 manufacturing and assembly operations in eight countries. The vehicles are sold it and serviced through a network of more than 3,000 distributors and dealers in 172 countries. The corporation has more than 40,000 employees and an annual revenue of over US $ 17 billion

In its 'homeland' country of South Korea, Kia operates three major vehicle assembly plants - Hwasung, Sohari and Kwangju facilities - as well as a world-class research and development center employing 8,000 technicians and a dedicated environmental R&D center. The Ecotechnology Research Institute, near Seoul, is working on future hydrogen fuel cell vehicles, as well as state-of-the-art vehicle recycling technologies and processes. Kia spends 6% of its annual revenue on R&D and also runs research centers in the United States, Japan and Germany.

Board Of Directors Structures:

Countries of Operations:

The organization has a number of operations inside and outside its home country of Korea that have boosted the company's high market share, sales and profit margins. According to Rakita and Markovich (2017), it also conducted a large-scale operation in the United States when it first launched Kia Motors America Inc. in California in 1992 as the organization's product distribution, marketing and sales arm. However, it has expanded in the United States with a number of facilitiesKiaMotor Manufacturing in the United States is Georgia, and Kia Motors, Mexico. The company's second overseas operation is Kia Motors India. Soviar and Pollák (2019) show that it was established in 2019, where the company built a facility on greenfield land in Anantapur. It is headed by Sham, who is the CEO. He has been accused of promoting the organization in the Indian market. The Indian facility manufactures about 300,000 units, and focuses on the sale of the SUV Kia Slot. Kia Motors has invested more than 1 1.1 billion in marketing, sales and construction of a manufacturing facility.

Kia Motors' fourth international operation is Kia Lucky Motors Pakistan. This is a joint venture between the company and Luck Cement, launched in 2018. It sells Kia Motors ‘cars and has introduced new vehicles Kia Sportage and Kia Picanto, where they are manufactured locally. The latest operation is Kia Motor Europe, which has been selling cars in Europe since 1991 (Rakita&Markovic, 2017). In 2001, it began developing left and right-hand drives for the Sportage SUV. KIA (2020) explains that since its expansion, it has sold a lot of the organization's automotive products. In addition, the company is working to expand it and bring Kia Motors Slovakia under its control.

Social and Ethical Responsibility:

Kia Motors Corporation is ethical in its business practices, and participates in corporate social responsibility where it has taken steps to improve them in the environmental and educational fields and to help those in need. In 2008, the organization issued a declaration pledging to join and expand its corporate social responsibility. The organization promises to engage in social outreach, environmental management, and trust management.(KIA, 2020). The organization observes all trade regulations in countries operating around the world. It also upholds labor laws, such as employee protection, non-discrimination, and fair wages. In the top management of the company, there are many women, thus adhering to the rules of gender balance.

The organization has launched the Green Light Project, which empowers individuals from communities to become self-sufficient (Beta, ND). There is also a program called Green Tour that focuses on helping people with mobility problems by donating vehicles to people with physical disabilities. This too Provides education to people in need, and college students. It is a champion in developing sports skills and promoting various sports. Son (n.d) explains that it has sponsored numerous sporting events, such as the FIFA World Cup, sports teams, players, sports associations.

 

 

INVENTORY MODELS IN OPERATION MANAGEMENT AT KIA LUCKY MOTOR CORPORATION   Inventory refers to idle goods or materials held by an organization for use sometime in theFuture. Inventory consists of raw materials, purchased parts, finished goods. Inventory serves as a buffer against uncertain andfluctuating usage and `keeps a supply of items available in case the items are needed by theorganization or its customers. Even though inventory serves an important and essentialrole, the expense associated with financing and maintaining inventories is a substantial partof the cost of doing business.

The EOQ model, also called the square root model, forms the basis of inventory control techniques. The EOQ model requires determination of the order quantitywhich is the amount of material (Q) to be purchased each time an order is placed,given the annual demand (D), the ordering cost per order (S), the inventory holding(carrying) cost per unit per year (H), and the unit cost per item (C). Q is the decisionvariable. The best value of Q, which minimizes the total annual cost, is calledthe EOQ. The total annual cost includes the annual ordering cost, annual inventoryholding cost, and annual cost of the item. The annual total cost is given

Annual Total Cost, TC = annual ordering cost + annual inventory holding cost +    

        annual item cost

Annual Ordering Cost

The annual ordering cost is the number of orders per year multiplied by the orderingcost per order. The number of orders in one year is annual demand (D) divided bythe order quantity (Q), that is, D/Q. Therefore, annual ordering cost = (D/Q) * S.An increase in the value of Q will decrease the annual ordering cost and vice versa.

 

Annual Inventory Holding Cost

The annual cost of holding inventory is the average inventory multiplied by theinventory holding cost per unit per year. The average inventory in a year is Q/2 asexplained below.Suppose the annual demand at KIA are D = 1200 units of Picanto. Figures showchanges in inventory levels for different values of Q. Figure 5.2, for Q =1200,shows that 1200 units are purchased at the beginning of the year. So the inventorylevel at the beginning is 1200 units of Picanto. The inventory level at the end of theyear (12th month) is zero. The average inventory is, therefore, (1200 + 0)/2 = 600which is Q/2. Figure 5.3 shows the inventory level variations for Q = 600.

Theyear starts with an inventory level of 600 units of Picanto that becomes zero at the end of sixth month. The average inventory during the first 6 months is, therefore,(600 + 0)/2 = 300. At the end of the sixth month, an additional 600 units of Picanto are purchased that raises the inventory level to 600 again. The inventory level is zero again at the end of the year. So the average inventory during the last 6 monthsis also (600 + 0)/2 = 300. In other words, the average inventory throughout theyear is 300 = 600/2 = Q/2. Figure shows the inventory level variations if

 

Q = 400. In this case, the material will be purchased three times during the yearand the average inventory will be Q/2 = 400/2 = 200.The annual inventory holding cost is, therefore, given as (Q/2) * H. An increasein the value of Q will increase the annual inventory holding cost and vice versa.

 

Annual Item Cost

The annual item cost is calculated by multiplying the annual demand D by theitem cost C, that is, annual item cost = D * C. A change in the value of Q does notchange the annual item cost. It may, however, be pointed out that the annual itemcost will change with a change in the value of Q if quantity discounts are involved.

 

Annual Total Cost

Annual Total Cost is given by

Annual Total Variable Cost

In the equation for TC, the values of D, H, and S are known (or can be estimated). The only unknown variable is Q which is the decision variable. Therefore, the only costs that are affected by changing the value of Q are the annual ordering cost and the annual holding cost. The sum of these two costs is called the annual total variable cost (TVC). TVC is given by:

Example for Cost Calculations

Suppose D = 1200 units of Picanto, S = $5.00, H = $1.20, and C = $12.00. Table gives the values of annual ordering cost, annual inventory carrying cost, and annual for several values of Q ranging from 50 to 300. The annual item cost will remain constant at $14,400 (= 1200 * 12) irrespective of the value of Q. The range50–300 is arbitrarily chosen to explain the changes in the values of these costs with changes in Q. It can be seen in Table 5.1 that as Q increases from 50 to 300, the annual ordering cost continues to decrease and the annual inventory holding cost continues to increase. Both TVC and TC first decrease, go down to a minimum

at Q = 100 and then start increasing again. The changes in annual ordering cost,annual inventory holding cost, and TVC are shown graphically for various values of Q in Figure 5.5. From this table, it appears that Q = 100 is the best quantity to buy. But is it the absolute minimum? The EOQ formula in the following sectionwill answer this question.

 

EOQ Formula

As discussed above, if Q increases, then the total orders per year will decrease andtherefore the annual order cost will also decrease; a higher value of Q will increasethe average inventory and hence the total annual inventory cost will also increase.Following the same reasoning, if Q decreases, then annual order cost will increaseand annual inventory cost will decrease. The change in the value of Q does notchange the total annual item cost.The total annual cost (TC) is given by

The optimal value of Q that minimizes TC is obtained when the annual orderingcost and the annual inventory holding cost are equal, that is, (D/Q) * S = (Q/2) *H.Solving this equation gives the formula for EOQ (optimal quantity), QO. EOQ formula:

The QO for this problem is 100.

It may be noted in Table 5.1 that annual ordering cost and annual inventoryholding cost are equal ($60.00) for Q = 100. The following inset lists various symbolsand equations that have been used in deriving the EOQ formula.

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPACITY MANAGEMENT PLANING

Kia Motors’ priority will be ensuring that its manufacturing plant’s capacity of 3,00,000 units per annum is fully utilized as soon as possible, said Manohar Bhat, Vice President and Head - Sales and Marketing, Kia Motors. The company will also be launching one product every six months, he said.

 

The South Korean automaker has its manufacturing plant in Anantapur, Andhra Pradesh, which has an annual production capacity of 3, 00,000 units. Kia Motors launched Seltos, it “We have a 3 lakh capacity (at the Anantapur plant) and we intent to go to a second shift also very quickly so that we can meet the demand and make sure that our customer does not have to wait for long...My goal is to make sure that my plant capacity of 300000 is fulfilled and completed as soon as possible,” Bhat told Business Line. He said that the company’s first concern would be to make sure the customers get the vehicles as soon as possible, with a minimum waiting period.

The Seltos is a locally manufactured and BS-6 compliant mid-size SUV, available at a price range of Rs 9.69 lakh to Rs 15.99 lakh (ex-showroom). Kia Motors has received 32035 bookings for the Seltos so far. It had garnered 6,046 bookings on the first day itself. The Seltos marks the debut of the South Korean auto major in India.

Bhat said that Kia Motors is following a “methodical and text-book” approach of going after the four Ps in sales and marketing management: product, place (network), promotion and price. He said that many of Seltos features are such that those features are not seen in luxury cars even. The Seltos is available at 265 customer touch points across 160 cities. With an aim to tackle the apprehensions customers may have about a new car company’s services, the company has set up service touch points in 160 cities too. He also drew attention to its advertising campaigns specifically aimed at its Indian consumers, as well the “attractive pricing” of Seltos, which is available at a starting price of Rs 9.69 lakh.

The automobile industry in the country is undergoing one of its worst and prolonged slowdowns ever, with sales in passenger vehicles having plummeted every month in the past year, barring October. On the company’s strategy to tide over this degrowth, Bhat said the focus of the company is to make available products based on customer preferences, adding that currently, its first task is to ensure quick delivery.

Bhat said that the company believes in the future of the Indian market and its automobile sector and that it is looking at its long term potential, pointing out how Kia Motors has invested $ 1.1 billion in Anantapur plant. Bhat said that Kia Motors’ products, pricing and bookings will help the company at a time like this when the auto sector is privy to a prolonged downturn.

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPACITY MANAGEMENT STRATEGY

Kia Motors Corporation has announced today details of ‘Plan S’, its mid- to long-term strategy aimed at progressively establishing a leadership position in the future automotive industry, encompassing mobility services and vehicle electrification, connectivity and autonomy.

Plan S outlines KIAs preemptive and enterprising ‘shift’ from a business system focused on internal combustion engines toward one centered on electric vehicles and customized mobility solutions. This two-track strategy is designed to facilitate Kia’s brand innovation and enhance profitability.

Alongside Kia’s 2025 financial and investment strategy, details of Plan S were announced to shareholders, analysts and credit-rating agencies at the company’s CEO Investor Day in Seoul today.

By the end of 2025, Kia plans to offer a full line-up of 11 battery electric vehicles. With these models Kia is looking to achieve a 6.6% share of the global EV market while also attaining a 25% share of its sales for its eco-friendly cars. With the global EV market expected to gain strength by 2026, Kia is aiming for 500,000 annual EV sales and global sales of 1 million eco-friendly vehicles (excluding China).

Alongside these objectives, Kia will offer EV-based mobility services as part of its new business model, helping solve global urban problems such as environmental pollution. In the Purpose Built Vehicle (PBV) market, anticipated to grow on the back of expanding car-sharing and e-commerce businesses, the company will secure leading-edge competitiveness

 

 

 

 

 

 

 

 

 

 

 

 

QUALITY MANAGEMENT

Quality management is the act of overseeing all activities and tasks that must be accomplished to maintain a desired level of excellence. This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement.

 

Why Automotive industry needs Quality Management

The automotive industry needs a powerful Quality Management System in place to identify, track, and resolve the product issues before products are delivered to the market. This allows them to meet compliance and operational excellence, ensuring that industry best practices are being followed across the organization.

 

QUALITY MANAGEMENT OF KIA LUCKY MOTORS CORPORATION

·         To define strategy and set the direction for manufacturing to achieve sustainable global quality standards.

·          To continuously review quality control processes, procedures and capabilities in order to sustain the most cost effective and efficient methods for meeting quality requirements, and making recommendation for improvement as appropriate.

·         Manage and control all quality control activities in accordance with identified Quality Assurance standards, and company procedures.

·         To monitor and report quality control progress, notifying any predicted shortfall or discrepancies against timescale and budgets.

·         Develops quality planning methods for all product lines.

·          To ensure that shipping quality standards are met for customer satisfaction.

·         To ensure that local manufactured parts meet global quality standards.

·         Identification of Quality stations throughout the plant and to prepare a layout

·         Development and implementation process flow, approved policies, procedures and operating guidelines to build quality into product throughout the various stages of manufacturing.

·          Suppliers Visits / Audit for Conformation of Countermeasures and for the purpose of Suppliers System & Process Improvement.

·          Improve Body Accuracy through enhancement of Critical Local Parts Accuracy.

·          Responsible for training of Suppliers Managers & Supervisors on Quality Mindset Development & Root Cause Analysis.

·         Responsible for the approval Local Parts manufacturing suppliers from Renault.