- KIA proves its excellence in quality management for business leadership, customer-first principle and process management.
- Resounding effects of overhauling 1,900 cases in operational standards and eliminating six major stumbling blocks of business operation
KIA Motors won the Grand Prize over other Korean businesses at the 27th National Quality Management Award held on November 7 at the COEX Auditorium.
With the recent awarding, KIA proved its stout competitiveness in virtually all areas encompassing leadership, strategic planning, customer-first principle, information analysis and emphasis on human resources as well as process management and management performance. The awarding is especially significant in showing how well the KIA departments cooperate in ordinary operations, not only in the factors of quality management.
In addition to the award given to the Company at this event, the Engine-Processing Team (also called “Jinok Team”) of Soha-ri Factory, the Chassis-1 Team (also called “Mafia Team” of Hwasung Factory, the Plastic Team (also called “Jeongmaek Team”) of Hwasung Factory were also awarded the Gold Prize. The Quality Management Team (also called “Changjo Team”) at the Quality Control Headquarters followed their lead by winning the Silver Prize. Other honors given to the KIA employees included the naming of the team leader at Sohari Plant as a “Quality Maestro” and the Industrial Medal given to the team leader of 6-Sigma Promotion Team at the Quality Control Headquarters. In this way, the Company and its employees showed that they are the very ones who set quality standards for others to follow.
First held in 1975, the National Quality Management Award is an annual event hosted by the Ministry of Commerce, Industry and Energy. It is sponsored by the Korea Standards Association, which intends to spread the movement of quality management throughout the industry. It is also an occasion in which both the employees and employers are gathered together to present awards to the businesses and individuals who made outstanding contributions to quality management each year and refresh their resolves. Of note, the event has been participated by the President of Korea since the 18th event held in 1992.
Benchmarked from the Malcolm Baldrige National Quality Award, it has adopted a world-class appraisal system and represents its belief in prevention-oriented corporate culture, systemic management and all other participations in pursuit of specialties.
At a press interview right after the awarding ceremony, KIA Motors President Kim, Noi Myung said, “This event will be a turning point in which customers will have deeper trust in KIA and an epoch-making event for us to be recognized as the people with world-class quality competitiveness. It will also mark an occasion where we can refresh our resolve to make our quality management system a perfect one. Now we will set our aim at joining the rank of World’s Top Five. With more self-confidence and formidable driving force, we will upgrade our standards in all areas of businesses.”
KIA is well known for concentrating its efforts into productivity and profitability, in addition to the company-wide quality control to be a first-class carmaker. Some of the examples include the enhancement of synergy effects with Hyundai Motor by accomplishing 100% overhaul in 1,900 cases of operational standards throughout the company, as well as introducing a total of 837 cases in quality improvement activities (114 cases in process and 723 cases in products). Such achievements were instrumental in preventing losses and creating new ideas related to quality improvement. Also, other steps were taken to put together 970 cases of benchmarking performances in 110 departments, thus opening a way for all the members to share the experiences.
Chung Mong-koo, Chairman of KIA, always emphasizes the importance of quality by saying; “International competitiveness in product quality is the only way to guarantee a business’s survival in this era of fierce competition.” Together with KIA’s record of maintaining the black-ink balance for three consecutive years following its management normalization, this year’s awards are especially meaningful in having KIA’s managerial performance and level of quality recognized by an authoritative organization.
In 1999, it posted 7.9 trillion won in sales followed by 10.8 trillion in 2000, which is a 37% increase year-on-year. KIA expects to post a total of 13 trillion won in sales by making forays into overseas markets despite the global recession. The net profit of current term has also increased 144% to reach 330.7 billion won compared to the 135.7 billion won in 2000. KIA expects to achieve about 650 billion won in net profit this year.
KIA is spurring its efforts to contribute to the national economy by making advancements into the international market. The KIA R&D Center also places much effort in focusing on the solutions to environmental and energy problems by researching into next-generation cars. The Company also adopted a system of using service employee’s real name in the car maintenance record for its customers. All these positive records are the results of KIA employees’ spirit of unison in striving toward a