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Abstract: Simultaneously launching new models globally becomes a problem with an increase in global production. Although Toyota Motor Corporation and Hyundai Motor Company have different production systems, they have almost at the same time created organizations with similar functions to solve the problem of simultaneously launching new models globally. These organizations are Toyota's Global Production Center (GPC) and Hyundai's pilot center. Both were new organizations with their own pilot production lines instead of conventional mass production lines. However, Toyota's GPC, which is a part of the mother factory system, plays a complementary role vis-à-vis the company's domestic plants, while at Hyundai's pilot center, which is a part of the model factory system, the pilot center functions independently of the domestic plants. This is how Toyota reduces the burden on its competitive mother factories in Japan, while Hyundai opts to maintain a distance from its domestic factories, which are not sources of its competitiveness.

Keywords: global production, new model launching, GPC, pilot center

Introduction

Economic globalization encourages companies to have production facilities overseas, not just in their home countries. One problem brought about by increased overseas production is that of launching new models, more precisely, simultaneously launching new models globally.

This paper deals with process engineering as it relates to mass production. Process engineering transforms product design information into information assets required for the manufacturing process, such as tools and dyes, machinery, process management software, workers' skills, and standard operating manuals (Clark & Fujimoto, 1991). At that time, some prototypes are produced on a pilot basis to confirm the appropriateness of machinery, molds, and tools. If this process meets acceptable levels of performance, then mass production is formally inaugurated.

Many companies start overseas production of new models only after establishing their domestic production methods at the home country. However, doing this is problematic, as it delays the launch of the new models overseas. With increasing global competition, new models are required to be introduced into the overseas markets as quickly as possible and the simultaneous global launch of new models is essential for it. Also, when companies have a string of models being developed specifically for the overseas markets, it is too much of a burden to manage all new model launches from the domestic factories.

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