MAN 233 Ops Management Tutorial 6

Due: Present to your group and submit final (revised) answers in week 7 on Friday the 18th
of September before 16h:00.

Instructions:

 Create groups of 4 students in your tutorial groups.

 Identify 2 group members to present the first tutorial. Then rotate this responsibility
to the other members to present in the week that follows.
 Use your Power Point slides to do your presentation to the group.
 Submit your final document at submissionsman233@gmail.com. The subject heading
must indicate YOUR TUTOR’S STUDENT NUMBER in BOLD letters and cc
your tutor in the email
 Additionally, the submission for next week Friday is based on unit 7.
 Final submission should be 12pt font, 1.5 spacing, and no more than 2-3 pages of
content.

Click on the link below to watch the 2 videos. Once watched consider the
case study below and answer the questions which follow:

Capacity planning in the automotive sector

Hyundai production in South Korea

Hyundai cuts production

HYUNDAI MOTORS

Hyunda1 Motor Company, Ltd, shortened to Hyundai Motors, is a South Korean

multinational automotive manufacturer headquartered in Seoul, founded 1967. The
company's first model, the Cortina, was released in cooperation with Ford Motor Company in
1968 and in 1975, the Pony, the first South Korean car, was released. Hyundai’s revenue was
nearly $108 billion in 2019 and employed roughly 118320 employees in 2016.

Hyundai Motors continues its quest to optimize product development and deliver highly
innovative technology. Today, in various countries and regions around the world, they enjoy
a reputation for creating truly innovative vehicles and service programs. With facilities
around the world, the Santa Fe, Tucson, Accent and i-models being very popular and growing
in South Africa in status. Electric vehicles are becoming the favored technology in China, and
Hyundai will be significantly increasing their number of “green” models which will be
necessary to compete in the future market. The Hyundai Ioniq Electric was already the
world's most environmentally friendly MY 2019 car.

a) Illustrate your answer in PowerPoint.

b) Use images and text
c) Use the theory in Unit 6’s lesson to substantiate your arguments.

1. What is meant by capacity in the operations sense?

(10 marks)

2. How Hyundai South Korea is/ has been the most productive car plant in Asia,
producing more 'cars per person' than any other factory. What determines the capacity
for car production at Hyundai? You should attempt to categorise factors according to
operational, tactical and strategic capacity decisions.

3. What long and medium term factors might impact upon capacity decisions at
Hyundai?

4. What alternative methods might Hyundai consider for responding to demand

fluctuation? With reference to the case video 3, identify which method has been
favoured by Hyundai?

5. Identify and discuss the medium term options adopted by Hyundai to modify supply.
What other options could they have considered? Discuss options in relation to cost
and other issues. How are excess resources utilised when production is reduced?

Total 25 marks