Kia 2000 Annual Report Download - page 11

Recently, Kia has been carrying out radical reforms in all production
facilities. We have maximized efficiency by conducting large-scale
reorganization and expansion of production lines according to their
individual characteristics. As a result, our finished automobile
division produced 803,000 units for a 14.7% increase over the
previous year.
In 2001, we plan to increase productivity a further 10% by
aggressively strengthening four key areas: reducing standard
production processes, increasing the straight line ratio, reducing
time between new model launches and improving logistics. Greater
efficiency at production sites will allow us to produce 968,000
vehicles this year in the finished car division, a 20.5% increase year
on year.
The full-scale implementation of Six Sigma coupled with
continuous improvement activities have improved finished car
quality while helping to raise productivity and lower costs. We have
designated 2001 as the First Year of Quality Management for the
Achievement of World-class Quality by 2005.Kia employees are
united in their determination to win the Korean Quality Grand
Prize,the most prestigious quality-related award in the nation.
In 1999, the Kia/Hyundai Integrated R&D Center first achieved a
maximum synergy effect through the joint use of platforms and
parts. For new product development, we began by rolling out the
Spectra in April. The Optima was unveiled in July, injecting new life
into the depressed mid-sized car market and also demonstrating
joint platform usage for the first time.
Kia launched the Spectra Wing in October, showing firm resolve
in the near-mid-sized market. By focusing on export model
development, Kia was able to roll out the Rio in May and the Optima
in October in North America. For the year, Kia completed
the development of 41 different models, including those for export.
Kia has conducted various seminars and other educational pro-
grams to hone researcher skills. As a result, Kia researchers devel-
oped 2.5-mile gain bumper technology for which Kia was awarded
the KT Mark. The academic activities of our researchers have
resulted in the publication of 11 theses, as well as the registration of
467 claims for industrial property rights.
In preparation for greater market competition in 2001, Kia is now
engaged in the final development efforts for 35 new vehicle models.
Moreover, profitability remains our top priority. Every Kia researcher
is also working to ensure basic cost planning is reflected in each
new model that comes out.
Kia has taken productivity and profitability to a higher level
by reorganizing production lines,
implementing Six Sigma and reducing production costs.
◀◀◀ Finished cars undergoing high-speed performance tests
◀◀ Quality control center
21st century, state-of-the-art engine R&D
◀◀◀◀ System of frequent inspections in action on the Carnival production line
◀Prototype of new model manufactured with state-of-the-art computers
2000 KIA MO TO RS
AN N UAL REPORT / 19-20
Production, quality, R&D