Baku The automotive industry does not consist of industries

Topic: BusinessComparative Analysis
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Last updated: July 30, 2019

  Baku EngineeringUniversityIndustrialEngineering-2014     M.Hajiyev                    F.

Huseynov     Automotive Industry and The Effects of TQM      Baku-2017 Contents Introduction.. 3 Brief history of automobile. 3 Slogans of the legendary cars. 4 Selling information.

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. 4 Most sold cars in the world.. 6 TQM tools in industry. 6 Customer satisfaction.. 8 Survey. 8 Defect reduction.

. 9 Employee morale. 9 References. 10    IntroductionAn automotive industry is a crucialfor all widespread array of organizations and companies convoluted in also the design, manufacturing, marketing, development,  and selling of motor vehicles, most of them arecalled automakers.

It is one of the world’s most important economic sectors by itsdistinct revenue. The automotiveindustry does not consist of industries committed to motor fuel filling stations and  the maintenanceof automobiles following delivery to the end-user, such as automobile repair shops .Brief history ofautomobileIn1808 François Isaac de Rivaz designed the first car powered byan internal combustion engine fueled by hydrogen.1Ø  1769:J. Watt invented an interchanging steam engine with a condenser.Ø  1816:R. Stirling invented a hot air engine (Stirling engine) whichutilizes a reheat energy.Ø  1839:J.

Ericsson developed numerous hot air engines (Ericsson engine) inthese days.Ø  1876:N. Otto settled a stimulus ignition engine (gasoline engine).Ø  1883:C. Laval developed a steam turbine.Ø  1892:R. Diesel invented the principle of a compression ignition engine (Dieselengine).

Ø  1930:F. Whittle invented a gas turbine foran airplane.Ø  1944:A practical rocket engine isdeveloped in Germany.Ø  1952:F. Bacon invented a central fuel cell.In 19th , Steam poweredvehicles, Brakes, Multi speed transmissions, Better steeringefforts help to improvements in railway locomotives.

Slogans of the legendary carsIfyou’re observing for an assembly of car slogans from a great number ofauto-mobile manufacturers, you’ve landed on the right page.2- The new slogan for the latestcampaign is ‘Designed For Driving Pleasure.’ BMW- The slogan for the brand is “thebest or nothing” (Mercedes)- ”We are the competition.” – Ferrari- ”The pursuit of perfection.” –Lexus- “Grace…space…pace.” – Jaguar- There is no substitute.

– Porsche-  “MovingForward,” – Toyota- “Go Further.” – Ford- “New thinking, new possibilities” – Hyundai Selling informationOver the entireworld, there were about 806 million light trucks and cars on the road in 2016,consuming over 980 billion litres (980,000,000 m3) of diesel and gasolinefuel yearly. For many developed economies an automobile is a primary type oftransportation. The Detroit branch of Boston Consulting Group predictsthat, by 2018, one-third of world demand will be in thefour BRIC markets (Brazil, Russia, India and China). For the timebeing, in the developed countries, the automotive industry has decelerateddown. It can also be anticipated that this trend will carry on, especially asthe younger generations of people (in highly urbanized countries) no longerwant to own a car anymore, and prefer the other modes of transport. Other possiblydominant automotive markets are Indonesia and Iran.

  Emerging auto markets already buy more carsthan conventional markets. According to the report of a J.D. Power study, evolvingmarkets accounted for 51 percent of the global light-vehicle tradesin 2016. The revision, completed in 2015 expected that trend to accelerate. Conversely,more latest reports (2016) confirmed the contradictory; specifically, that theautomotive industry was reducing down even in BRIC republics. In the UnitedStates, vehicle sales peaked in 2015, at 17.

4 million pieces. to 1950; USA had dominantlyformed further than 80% of motor vehicles. to 1950s; UK,Germany and France restarted production.to 1960s; Japanstarted fabrication and increased dimensions through the 1980s. US, Japan,Germany, France and UK produced about 80% of motor vehicles through the 1980s.to 1990s; Koreabecame a capacity producer. In 2004, Korea became No. 5 passing France.

to 2000s; China puffed-upits production drastically, and 2009 became the world largest producingcountry.to 2013; The share of China(25.4%), Korea, India, Brazil and Mexico rose to 43%, while the share of USA(12.7%), Japan, Germany, France and UK fell to 34%.

Most sold cars in the worldo   Toyota Carola – nearly 1.020.000 copies sold (in 2009)o   Hyundai Elantra – is closing in on Carola with1.010.000o   Wuling Sunshine – with about 943.000o   FordFocus- with 919.000o   KiaRio- with 815.000  TQM tools in industryAll we know TQM’s principles are pertinentto everywhere as well as to the production of the automotive industry.

Totalquality management (TQM) is a general philosophy of gradually enlightening theoperations of manufacturing. This is done through the application of severeprocess analysis by every involved employer and employee. TQM is usuallyapplied at the front-line, tactical level, where production, clerical, andlow-level workers are deeply complicated.3The advantages oftotal quality management (TQM) include:·        Costreduction – Whenfunctionalized regularly over time, TQM can diminish costs throughout an association,especially in the areas of warranty, scrap, rework, and field service costreduction. Since these cost reductions stream straight through to bottom-lineprofits without any extra costs being incurred, there can be a startlingincrease in profitability.·        Customersatisfaction – From the time when the company consumesbetter products and services, and its interactions with customers arerelatively error-free, there should be fewer customer complaints.

A higherlevel of customer satisfaction may also lead to increased market portion, asexisting customers act on the company’s behalf to bring in more customers. Fewercomplaints may also unkind that the resources devoted to customer service canbe reduced.·        Defectreduction – TQM has a durable importance on improvingquality within a procedure, fairly than checking quality into a process. Thisnot only reduces the interval needed to fix faults, but marks it less necessaryto hire a team of quality assurance personnel. ·        Morale- The unending and confirmed achievement ofTQM, and in certain the contribution of employees in that achievement can leadto a perceptible improvement in employee confidence, which in turn reducesemployee turnover, and therefore shrinks the cost of hiring and training newemployees. Cost reduction –  charge lessening is generally deal with the totalprocess in order to identify additional costs, disregard them and get acontinuous upgrading sequence. Key philosophies are below:1.

    Established a minimum cost reduction goal, 2.    Establish whether budgeting can achieve the target, 3.    Place cost reduction into the wider approach of the business,4.    Identify the economic drivers of cost,5.    Rearrange the labor force, 6.    Analyzing costs with the value chain,7.

    Select Cost Reduction in the Automobile Industry appropriate tools fromthe operational toolbox,8.    Manage the change process carefully, 9.    Consider subcontracting non-core activities,10.Analyze the results diligently. CustomersatisfactionGM wasthe single Detroit automaker to expand in customer gratification this year, theACSI study found.

Foreign-made vehicles continue to have the highest driversatisfaction, led by Toyota and Lexus with scores of 86 on ACSI’s scale of 0 to100.SurveyOverall, customer satisfaction with automobiles andlight vehicles slipped 1.2% to a score of 81. That comes as total car salesfell 11.4% for the first half of the year. Here’s the list of automakers,ranked from best to worst in customer satisfaction:4 Lexus (Toyota): 86 % Toyota:  86 % Subaru: 85% GMC (GM): 84 % Mercedes-Benz: 84 % Cadillac (GM): 83 % Hyundai: 83 % Lincoln (Ford): 83 %Defect reductionIn a challenge to shield itsrepute, Toyota strained the ever popular “blame the victim”operation, saying people weren’t driving right. For example, in Toyota’s status for safety (and tediousblandness) was so inflexibly in place that when its cars underway to speed upon their own, frightening drivers and causing 31 deaths, the auto blog Jalopniklabelled it “beige bites back.” Then they blamed an innocent floormat, issuing a recall to fix floor mats in 2009.

Really, Toyota? It finally hadto fess up in 2010 and issue a recall for the sticky pedal mechanism. In total,9 million cars were recalled. The happening still troubles the corporation; in2014, Toyota paid a $1.2 billion settlement for misleading investigators. Employee moraleSubsequently, you are an influential sponsor towhether an employee’s morale is encouraging or destructive. Segments of the surroundingsthat you control that have an impact on employee morale contain such questionsas the efficiency of your managers, the superiority of their interaction withthe people you employ, and the way employees interact with each other in theday-to-day workplace. You create the environment or culture in which these as positive factors arevalued. You reward and recognize the managers who best display thecharacteristics you want to see in their interaction with employees.

5References1.    https://www.britannica.com/topic/automotive-industry2.    http://www.

advergize.com/slogans-list/car-slogans/3.    https://www.accountingtools.

com/articles/what-are-the-benefits-of-total-quality-management-tqm.html4.    http://clark.com/cars/the-best-and-worst-car-brands-for-customer-satisfaction-in-2017/5.   https://www.thebalance.

com/you-can-boost-employee-morale-1918107  Baku EngineeringUniversityIndustrialEngineering-2014     M.Hajiyev                    F.Huseynov     Automotive Industry and The Effects of TQM      Baku-2017 Contents Introduction.. 3 Brief history of automobile. 3 Slogans of the legendary cars.

4 Selling information.. 4 Most sold cars in the world..

6 TQM tools in industry. 6 Customer satisfaction.. 8 Survey.

8 Defect reduction.. 9 Employee morale.

9 References. 10    IntroductionAn automotive industry is a crucialfor all widespread array of organizations and companies convoluted in also the design, manufacturing, marketing, development,  and selling of motor vehicles, most of them arecalled automakers. It is one of the world’s most important economic sectors by itsdistinct revenue. The automotiveindustry does not consist of industries committed to motor fuel filling stations and  the maintenanceof automobiles following delivery to the end-user, such as automobile repair shops .Brief history ofautomobileIn1808 François Isaac de Rivaz designed the first car powered byan internal combustion engine fueled by hydrogen.

1Ø  1769:J. Watt invented an interchanging steam engine with a condenser.Ø  1816:R. Stirling invented a hot air engine (Stirling engine) whichutilizes a reheat energy.

Ø  1839:J. Ericsson developed numerous hot air engines (Ericsson engine) inthese days.Ø  1876:N. Otto settled a stimulus ignition engine (gasoline engine).Ø  1883:C. Laval developed a steam turbine.Ø  1892:R.

Diesel invented the principle of a compression ignition engine (Dieselengine).Ø  1930:F. Whittle invented a gas turbine foran airplane.Ø  1944:A practical rocket engine isdeveloped in Germany.Ø  1952:F. Bacon invented a central fuel cell.In 19th , Steam poweredvehicles, Brakes, Multi speed transmissions, Better steeringefforts help to improvements in railway locomotives.

Slogans of the legendary carsIfyou’re observing for an assembly of car slogans from a great number ofauto-mobile manufacturers, you’ve landed on the right page.2- The new slogan for the latestcampaign is ‘Designed For Driving Pleasure.’ BMW- The slogan for the brand is “thebest or nothing” (Mercedes)- ”We are the competition.” – Ferrari- ”The pursuit of perfection.” –Lexus- “Grace…space…pace.” – Jaguar- There is no substitute.

– Porsche-  “MovingForward,” – Toyota- “Go Further.” – Ford- “New thinking, new possibilities” – Hyundai Selling informationOver the entireworld, there were about 806 million light trucks and cars on the road in 2016,consuming over 980 billion litres (980,000,000 m3) of diesel and gasolinefuel yearly. For many developed economies an automobile is a primary type oftransportation. The Detroit branch of Boston Consulting Group predictsthat, by 2018, one-third of world demand will be in thefour BRIC markets (Brazil, Russia, India and China). For the timebeing, in the developed countries, the automotive industry has decelerateddown. It can also be anticipated that this trend will carry on, especially asthe younger generations of people (in highly urbanized countries) no longerwant to own a car anymore, and prefer the other modes of transport.

Other possiblydominant automotive markets are Indonesia and Iran.  Emerging auto markets already buy more carsthan conventional markets. According to the report of a J.D. Power study, evolvingmarkets accounted for 51 percent of the global light-vehicle tradesin 2016. The revision, completed in 2015 expected that trend to accelerate. Conversely,more latest reports (2016) confirmed the contradictory; specifically, that theautomotive industry was reducing down even in BRIC republics. In the UnitedStates, vehicle sales peaked in 2015, at 17.

4 million pieces. to 1950; USA had dominantlyformed further than 80% of motor vehicles. to 1950s; UK,Germany and France restarted production.to 1960s; Japanstarted fabrication and increased dimensions through the 1980s. US, Japan,Germany, France and UK produced about 80% of motor vehicles through the 1980s.to 1990s; Koreabecame a capacity producer. In 2004, Korea became No. 5 passing France.

to 2000s; China puffed-upits production drastically, and 2009 became the world largest producingcountry.to 2013; The share of China(25.4%), Korea, India, Brazil and Mexico rose to 43%, while the share of USA(12.7%), Japan, Germany, France and UK fell to 34%.

Most sold cars in the worldo   Toyota Carola – nearly 1.020.000 copies sold (in 2009)o   Hyundai Elantra – is closing in on Carola with1.

010.000o   Wuling Sunshine – with about 943.000o   FordFocus- with 919.000o   KiaRio- with 815.000  TQM tools in industryAll we know TQM’s principles are pertinentto everywhere as well as to the production of the automotive industry.

Totalquality management (TQM) is a general philosophy of gradually enlightening theoperations of manufacturing. This is done through the application of severeprocess analysis by every involved employer and employee. TQM is usuallyapplied at the front-line, tactical level, where production, clerical, andlow-level workers are deeply complicated.3The advantages oftotal quality management (TQM) include:·        Costreduction – Whenfunctionalized regularly over time, TQM can diminish costs throughout an association,especially in the areas of warranty, scrap, rework, and field service costreduction. Since these cost reductions stream straight through to bottom-lineprofits without any extra costs being incurred, there can be a startlingincrease in profitability.·        Customersatisfaction – From the time when the company consumesbetter products and services, and its interactions with customers arerelatively error-free, there should be fewer customer complaints. A higherlevel of customer satisfaction may also lead to increased market portion, asexisting customers act on the company’s behalf to bring in more customers.

Fewercomplaints may also unkind that the resources devoted to customer service canbe reduced.·        Defectreduction – TQM has a durable importance on improvingquality within a procedure, fairly than checking quality into a process. Thisnot only reduces the interval needed to fix faults, but marks it less necessaryto hire a team of quality assurance personnel. ·        Morale- The unending and confirmed achievement ofTQM, and in certain the contribution of employees in that achievement can leadto a perceptible improvement in employee confidence, which in turn reducesemployee turnover, and therefore shrinks the cost of hiring and training newemployees. Cost reduction –  charge lessening is generally deal with the totalprocess in order to identify additional costs, disregard them and get acontinuous upgrading sequence. Key philosophies are below:1.    Established a minimum cost reduction goal, 2.    Establish whether budgeting can achieve the target, 3.

    Place cost reduction into the wider approach of the business,4.    Identify the economic drivers of cost,5.    Rearrange the labor force, 6.    Analyzing costs with the value chain,7.    Select Cost Reduction in the Automobile Industry appropriate tools fromthe operational toolbox,8.

    Manage the change process carefully, 9.    Consider subcontracting non-core activities,10.Analyze the results diligently. CustomersatisfactionGM wasthe single Detroit automaker to expand in customer gratification this year, theACSI study found. Foreign-made vehicles continue to have the highest driversatisfaction, led by Toyota and Lexus with scores of 86 on ACSI’s scale of 0 to100.SurveyOverall, customer satisfaction with automobiles andlight vehicles slipped 1.2% to a score of 81. That comes as total car salesfell 11.

4% for the first half of the year. Here’s the list of automakers,ranked from best to worst in customer satisfaction:4 Lexus (Toyota): 86 % Toyota:  86 % Subaru: 85% GMC (GM): 84 % Mercedes-Benz: 84 % Cadillac (GM): 83 % Hyundai: 83 % Lincoln (Ford): 83 %Defect reductionIn a challenge to shield itsrepute, Toyota strained the ever popular “blame the victim”operation, saying people weren’t driving right. For example, in Toyota’s status for safety (and tediousblandness) was so inflexibly in place that when its cars underway to speed upon their own, frightening drivers and causing 31 deaths, the auto blog Jalopniklabelled it “beige bites back.” Then they blamed an innocent floormat, issuing a recall to fix floor mats in 2009. Really, Toyota? It finally hadto fess up in 2010 and issue a recall for the sticky pedal mechanism.

In total,9 million cars were recalled. The happening still troubles the corporation; in2014, Toyota paid a $1.2 billion settlement for misleading investigators. Employee moraleSubsequently, you are an influential sponsor towhether an employee’s morale is encouraging or destructive. Segments of the surroundingsthat you control that have an impact on employee morale contain such questionsas the efficiency of your managers, the superiority of their interaction withthe people you employ, and the way employees interact with each other in theday-to-day workplace. You create the environment or culture in which these as positive factors arevalued.

You reward and recognize the managers who best display thecharacteristics you want to see in their interaction with employees.5References1.    https://www.britannica.

com/topic/automotive-industry2.    http://www.advergize.

com/slogans-list/car-slogans/3.    https://www.accountingtools.com/articles/what-are-the-benefits-of-total-quality-management-tqm.html4.    http://clark.

com/cars/the-best-and-worst-car-brands-for-customer-satisfaction-in-2017/5.   https://www.thebalance.com/you-can-boost-employee-morale-1918107

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