Friday, October 12, 2007

KIA solve its quality problem

I read 'Information systems help KIA solve its quality problem'

Kia had information of defects already. But separated information in different systems were useless to help KIA solve its quality problem.

KIA stored the data in a single place & could analyze them. managers are able to analyze the data by daily, weekly or monthly reporting periods and by specific car models, model years, and component.

KIA's quality has improved. In quality rankings released on May 18, 2005, J.D.Power reported that KIA 1.40 problems per vehicle, finishing second for quality in the compact-car category behind the Toyota Prius.

KIA's new defect-reporting system could not only decrease defects of KIA's car but also lower cost & increase KIA's brand.

7 comments:

Anonymous said...

Usually, Many companys would have same kinds of problems in their business. Many information, they need, is located in different place so that they get a valuable information to help on their business, company has to gather and analyze that data appropriately. Like KIA, many manufacturing companys want to solve their problems. Before they introduce such kinds of systems, they have to know what is the problem for them exactly.

Woo Hyun. Kim said...

"Change your data to information and make benefit"

Knowledge Management experts always emphasize "unused data is only data. When we use it useful for our purpose, that is just information"
In these days, the Information Technology have developed very fast and it is easier we use and analysis the data.
As the text book let us, many companies have spent a lot of money for install IT system include EPR, CRM etc., Some companies got more benefit than invest cost and some lost. How is our company? Aren't there dead data in your office like the first IT system in Kia Motors case?
We must make an effort to change data to useful information for company's goal.

Ja-young Gu said...

Recently, Anybody knows that The company have to use Infomation systems.

Kia has tried to create the systems for sovling the problem.
but in an early stage, The systems is fragment. so the different systems prevented kia from
getting a complete picture of defects.

In here, we have to pay attention to kia's decision change.
Kia make up the deficit to set up a defect early warning system.

Finally Kia's quality has indeed improved.

In this case, I get the importance to use the suitable information system for the company.

seller said...

In case of manufacturing company like KIA, if the signals in process is gathered and analyzed rightly as flow, those signals are changed into valuable information for optimzing process.

But in the silo system, signals is fragmented and system generates misleading information. Consequently total process is distorted.

Introduction of IT system is not the problem tracking/solving system. I think the concrete principle/philosophy should be based on introduction of IT system.

Kim Hee Jeung said...

Kia case showed the importance of internal transparent communication system.

It is not only the IT which improve the product quality.
More importantly how we utilize it and make it transparent for internal usage is critical.

Kia had system to gain quality problem issues such as spare parts, customer claims and warranty claims.

However, the each information was not put together to make a whole picture. In Kia's case, the information needed to provide transparent access for multi sources. If not, the information is handy capped.

My ex boss used to tell his staffs "don't bring the answer which excel can provide, I work with people because I need thoughts."

Youngjoon.kim said...

this article can be a typical case which shows the information systems and the way how to make it.
a decade ago, kia has some quality problems that it has more defects than other competitors' so the sales were quite below than others'. at that time, each part in the company has its own information. actually, they could be just data, not information because they were separated in seven different systems, so not so valuable to notice and solve the quality problems.
however, since kia used the software 'engine', and 'crystal analysis software', they could store all data in one system and analysis them to notice the problems earlier. finally, the number of defects was reduced to competitor's level, and the sales were getting bigger rapidly.
kia didn't change the way how to make the cars or the infrastructure in the company. they installed IS so they could make the data from each part into more useful information which made company's better performances.

yongheui / mis said...

Development of Information Technology got a lot of changes in our life. Especially, IT contribute to mass data processing. Automobile industry may need a lot of data and efforts to solve this if defect is discovered because have much more complex process of production than other manufacturing industry. And it will be more difficult thing 'How to use the gathered data.' than just gathering the data. Finally, information system made us more convenience, but it will be our choice how well use this.