HYUNDAI MOTOR COMPANY

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The standard SAP ERP software could not efficiently process our huge amount of data. SAP Custom Development and SAP MaxAttention provided us with a powerful, tailor-made ERP solution that met our highest expectations.
Lee, Tae Gon, erP team manager, Hyundai motor Company ltd.

Company name: Hyundai motor Company ltd. location: Seoul, South Korea Industry: Automotive Products and services: Passenger cars and commercial vehicles revenue: uS$25.6 billion employees: 47,000 Web site: worldwide.hyundai.com Implementation partner: SAP Custom Development organization Challenges and Opportunities Handle tremendous company and data growth from an It perspective Improve manufacturing and business efficiency minimize time spent to detect and correct data inconsistencies Increase competitiveness through integrated and real-time data reduce It maintenance and administrative costs

Implementation Highlights Completed implementation within 9 months as planned and within budget Why SAP Profound knowledge of the automotive industry, especially concerning its It and business needs large number of car manufacturers as customer references Stable and diversified functionality of SAP erP expertise in developing custom solutions for SAP erP Benefits efficient strategy management through real-time data Improved data precision (99% error-free operation) Stable processing of enormous amount of data Substantial time savings thanks to higher performance, exceeding customer expectations by a factor of 4 reduction of errors in the manufacturing process

Objectives Integrate comprehensive, stable enterprise resource planning (erP) software enable erP software to adjust to changing Third-Party Integration manufacturing strategy Database: oracle Speed processing of huge data sets Hardware: IBm SAP Solutions and Services operating system: IBm AIX SAP erP application SAP Custom Development services SAP maxAttention support

SAP Customer Success Story Automotive

Hyundai motor Company ltd., based in Seoul, South Korea, is the worlds fifth largest automobile company, producing passenger cars and commercial vehicles. In order to meet the fierce competition in the global market, the Korean corporation came up with a flexible manufacturing strategy. It then sought an It solution that could support this strategy and chose the SAP erP application to process its huge amount of data in real time. the SAP Custom Development organization helped the Korean company to make the standard enterprise resource planning (erP) solution more flexible, tailoring the software for the companys individual It and business needs.
Hyundai motor Company became affiliated with KIA motors in the late 90s, which brought its sales to 2.8 million vehicles, a yearly increase of 6.9%. It now has a tight sales network comprising 6,000 dealerships, 20 overseas factories, and sales centers in 180 countries. enable it to compete in the global market more aggressively and flexibly. yet there was a drawback: Hyundais legacy It infrastructure and its use of microsoft excel worksheets were inadequate for realizing its ambitious plans. lee, tae Gon, erP team manager at Hyundai, recalls the situation: the inefficiency of the old system became serious with the tremendous growth of the company. there were numerous interfaces. often, we found data inconsistencies between these interfaces. We had to spend a significant amount of time to detect and correct this data. It was impossible to speed up our business processes with this It system. An accurate, real-time data management solution was a necessary condition for Hyundai to maintain its global competitiveness as a car manufacturer. Hyundai decided to implement an erP software solution.

Tailored ERP Solution for Hyundai

Hyundai looked for an experienced erP software provider and quickly recognized the outstanding competence of SAP in this field. In addition, it was won over by the profound implementation and development knowledge SAP demonstrated in the automotive industry, with the diversified functionalities of SAP erP convincing the car manufacturer. yet it was clear to Hyundai that a standard erP solution could not speed up the processing of the enormous amount of data Hyundai had to manage. lee explains: A typical vehicle consists of 20,000 parts, and we produce more than 30 models. So, an enormous amount of data runs through the manufacturing process every second. to handle such masses of data, Hyundai needed to enhance the power of the erP software. the company required an erP solution that could work efficiently within Hyundais particular manufacturing and business environment. moreover, the company wanted a highly flexible erP solution that could match the companys flexible manufacturing strategy. lee elaborates: Due to the ever-changing market conditions in the automobile industry, we chose a flexible manufacturing strategy. therefore, we expected high flexibility from the new It infrastructure as well. As a result, we needed to further enhance the current flexibility of the standard SAP erP software. to meet these technical challenges, Hyundai decided to get the

Focus on Global Market Needs

for Hyundai, an essential factor of success is in distinguishing itself from other car manufacturers. It invests enormous amounts of money and a great deal of time at least two to three years in developing new automotive models and building new plants. this is accompanied with high risk. In order to support the kind of decision making involved and respond to the business risks in advance, Hyundai introduced a strategic enterprise management system. the company, furthermore, focused on improving manufacturing and sales efficiency to

SAP ERP is so powerful. We didnt expect the time savings to be that high.

Paeng, Jeong Gook Global CIo and President Hyundai motor Company ltd.

support of the SAP Custom Development organization, charging the team with no less daunting a task than to ratchet up the already sophisticated erP software to handle the full deluge of data the global automotive manufacturer would be feeding it.

evaluation of the SAP services as well: they were rated with the highest grade possible by the Korean company.

Considerable Time Savings and Error-Free Data Processing

Hyundai has already benefited from the enhancements made to the erP solution and is astonished by the

Greatest Satisfaction with SAP Expertise

this mission-critical project was implemented within the planned time frame and budget. Hyundai was the first automotive company in South Korea to benefit from the development services delivered by the team from SAP Custom Development, receiving enhanced SAP erP software that answered its unique It and business needs. During the implementation, Hyundai engaged SAP maxAttention support to coordinate the communication between Hyundai in Korea and the team from SAP Custom Development in Germany. In addition, SAP maxAttention provided on-site implementation of end-to-end solution operations. the cooperation between the two SAP services teams proved to be of enormous value throughout the duration of the implementation phase. lee sums up: the standard SAP erP software could not efficiently process our huge amount of data. SAP Custom Development and SAP maxAttention provided us with a powerful, tailor-made erP solution that met our highest expectations. Hyundais thorough satisfaction is evident in its

innovation. Choi, Sang Chul, senior vice president of Hyundai elaborates, We spent the budget and time effort as planned. the efficiency is a lot higher than expected. We now enjoy precise, real-time data and high efficiency. the stock management, which used to be very complicated, runs automatically now. used for the production of vehicles, the stock management is now

We spent the budget and time effort as planned. The efficiency is a lot higher than expected. We now enjoy precise, real-time data and high efficiency. The stock management, which used to be very complicated, runs automatically now.
Choi, Sang Chul, Senior vice President, Hyundai motor Company ltd.

processing power of the application. SAP erP is so powerful. We didnt expect the time savings to be that high, observes Paeng, Jeong Gook, global CIo and president of Hyundai. thanks to the parallel processing of the customized erP solution, Hyundai was able to process the amount of production orders received in 1 hour within 20 minutes rather than the 14 hours it used to take. this represents a significant cost and time savings for the Korean car manufacturer. the erP solution developed by SAP Custom Development based on SAP erP works nearly error-free, with data processing that is very stable. It has enabled Hyundai to use real-time data to support its continuous business

processed by the SAP erP software that was enhanced by SAP Custom Development.

Nationwide Expansion of SAP ERP

Due to its many benefits, Hyundai now plans to extend the implementation of SAP erP to its other plants. first in line are the plants at Jeonju and ulsan the worlds biggest integrated manufacturing factory. ryu, Se yul, director of Autoever System Corp., a subsidiary of Hyundai, sums up the companys future plans: We are looking forward to deploying SAP erP with the help of SAP Custom Development to all our plants.

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