Mixed-model assembly line sequencing at Hyundai Motor Company

Duplaga, Edward A;Hahn, Chan K;Hur, Daesik

Production and Inventory Management Journal; Third Quarter 1996; 37, 3; ABI/INFORM Complete
pg. 20

MIXED-MODEL ASSEMBLY LINE SEQUENCING

AT HYUNDAI MOTOR COMPANY
EDWARD A. DUPLAGA, PHD
CHAN K. HAHN, PHD
DAESIK HUR
Department of Management, Bowling Green State University, Bowling Green, OH 43403

In many industries, competitive pressures and

changing consumer preferences now require an increasing variety of products provided in a very costeffective manner. This means that many repetitive
manufacturers that used to offer mass-produced standard items now have to produce more varieties using
their current production facilities. The automobile industry, where a large volume production requirement
must be combined with widely varying small lot
"make-to-order" requirements, is a good example of
this type of situation. Many automobile companies
have adopted mixed-model assembly lines to provide
an increased flexibility while still maintaining most of
the cost benefits inherent in high-volume, mass-production systems.
Although several mixed-model sequencing procedures have been developed and presented in the literature, there are relatively few studies describing the
actual use of these procedures by organizations.
Therefore, the purpose of this article is to describe and
illustrate the mixed-model sequencing approach used
by Hyundai Motor Company.

MIXED-MODEL SEQUENCING PROBLEM

Each product assembled on the line tends to require
a variety of parts, and these parts often vary from
product to product. Therefore, the amount of work required to assemble the individual products also varies,
creating an uneven flow of work between the stations
along the line. This situation may create two possible
problems-a balance delay and a high in-process inventory level-due to uneven usage of parts.
In this article, we use the term "model" to refer to
a generic product line such as the Accent. On the other
hand, we use the term "model type" to indicate a specific combination of components or options available
within a model (e.g., an Accent with automatic transmission, anti-lock brakes, etc.).
Since the line is balanced on the basis of an average
cycle time for the model, the ability of individual sta20

tions to keep up with the work is influenced by the

order in which model types are sequenced on the line.
For example, if several model types with relatively
longer task times (i.e., more parts or options) are successively scheduled, a bottleneck will occur and, eventually, line stoppages will result. Thus the sequencing
of model types on the line has implications for the utilization of the line capacity. Okamura and Yamashina
[ 7] discussed this issue and presented a heuristic procedure for sequencing products on a mixed-modelline
with the objective of minimizing line stoppages.
For mixed-model assembly lines operating in a JIT
system, another commonly pursued objective for sequencing products is to achieve a steady demand for
component parts [1]. If the assembly line withdraws
parts in a variable manner in regards to timing and
quantity, then the feeding operations will have to
plan for as much inventory, equipment and manpower as necessary to meet the peak in the variance
of quantities demanded. This is a situation to be
avoided under JIT. Monden [6] noted that a steady
demand for component parts is essential to the pull
system of JIT production. Thus, since the final assembly schedule determines the demand for component
parts, the order in which model types are assembled
has important inventory and capacity implications
for the JIT system.
Currently at Hyundai, only one model is produced
on a given assembly line. Therefore, Hyundai's mixedmodel sequencing problem is defined as follows:
Given a daily production requirement by model type,
and assuming that line balancing has already occurred, determine the sequence of introducing model
types to the assembly line so as to smooth the demand
for component parts and minimize the balance delays.
Several procedures have been designed to develop
an assembly sequence for a mixed-model assembly
line [1, 3, 4, 7, 8]. Most of these procedures have the
objective of either minimizing balance delays or
smoothing the demand for component parts. In contrast, the sequencing methods developed by Toyota

PRODUCTION AND INVENTORY MANAGEMENT JOURNAL-Third Quarter, 1996, APICS

Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.

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--o- Average

--o- Unmixed

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Sequence Position

FIGURE 1:

1300 cc engine usage

Motor Corporation, as described by Monden [5], try

to address both balance delay problems and part usage issues in the assembly line sequencing situation.
The mixed-model sequencing approach used by
Hyundai Motor Company of Korea, presented in
this article, is a modified version of Toyota's Goal
Chasing Method I.

more formal and rigorous approach to sequencing vehicles on the line. Also, while earlier sequencing approaches were more concerned with leveling the work
load at each station on the line, as the company became
more involved in JIT production methods, the focus
shifted towards the impact of the final assembly sequence on the rate of demand for component parts.
These issues led to the development and adoption of
a heuristic procedure-a simplified version of Goal
Chasing I (GCl) used at Toyota (see [5]).
The basic logic behind Hyundai's heuristic procedure is that if the deviation between the expected use
of components (based on a constant usage rate) and
the actual use can be minimized, then the goals of minimizing the balance delays and smoothing the part usage rate can be realized. Smoothing or leveling the demand for component parts is essential to the pull
system of JIT production. If the final assembly sequence groups vehicles together which require common components, then the corresponding demand for
the components will be lumpy over the course of the
day. For example, Figures 1 and 2 provide illustrations
of relatively smooth consumption patterns and very
non-smooth consumption patterns for two component
parts.
A flowchart summarizing Hyundai's heuristic sequencing approach is presented in Figure 3. Starting
with the first position in the sequence list, an overall
measure of deviation is computed for each model type,

MIXED-MODEL SEQUENCING AT HYUNDAI

At Hyundai, the master production schedule is developed in monthly time buckets on an eight-month
rolling horizon basis. Hahn et al. [2] provide a detailed
description of the master production scheduling process at Hyundai. The confirmed master production
schedule for the next month is further broken down
into weekly and daily production schedules. The finalized daily and weekly schedules are distributed to
each plant's production planning department, which
then requests the data processing department to develop the daily sequencing lists for the assembly lines.
The daily sequencing list specifies the order of vehicles
to be assembled each day by the assembly line.
In the early days when production volumes and variety were relatively low, Hyundai used informal
methods for developing the daily sequence list. These
approaches were adequate when the situation was relatively simple with only a few options to consider.
However, as the variety of options and possible combinations increased, Hyundai realized the need for a

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FIGURE 2:

1500 cc engine usage

MIXED-MODEL ASSEMBLY LINE SEQUENCING

Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.

21

TABLE 1:

Conditions Considered For Daily

Sequencing List

Condition

Determine S;i and Compute Ri

Set k = I and Xi<k-1) =0 for all j

Compute Dil: for alii and Choose i

which minimizes remaining Dil:

Set ~k =~k- 1 +S;i

for all j

A vehicle of model type i is assigned

to the kth position in the sequence

Choices

1. Door Type:
2.
3.
4.
5.

Engine:
Trim Level:
Transmission (T/M):
Drive Type

6.
7.
8.
9.
10.
11 .
12.

Region:
Air Bag System:
Power Steering:
Anti-Lock Brakes
Rear Spoiler:
Delivery Wrapping:
Driving Instruction
Vehicle:

3-Door (3DR), 4-Door (4DR), 5-Door

(5DR)
1300 cc (13), 1500 cc (15)
L, GL, GLS (most luxurious)
Manual (5), Automatic (A4)
Right-Hand Drive (RH), Left-Hand
Drive (LH)
Domestic, Export
Yes (0), No
Yes (0), No
Yes (0), No
Yes (0), No
California, Canada, Puerto Rico, Other
Yes (0), No

No

where

Model type i* is excluded from next

sequence determination

No

FIGURE 3:

Computational procedure for mixed-model

sequencing at Hyundai

and the model type that has the smallest deviation

measure is selected first. This procedure is repeated
one position at a time until all scheduled vehicles are
sequenced in the list.
More formally, Hyundai defines the overall measure of deviation between the expected component or
option usage rates and the actual usage rates for model
type i, given k-1 vehicles have already been assigned
to the sequence, as:

Ri = average quantity of option j required per vehicle when averaged over the daily production schedule
= NJQ (Ni = total quantity of option j to produce all Q vehicles in the daily production
schedule)
Xi<k-l> =actual usage of option j for assembling the first
k-1 vehicles in the sequence
S;i = required quantity of option j for assembling
one unit of model type i.
The term (Xi<k-Jl + S;i) is equal to the actual usage of
option j for assembling the first k vehicles in the sequence if model type i is selected for the kth position
in the sequence list. On the other hand, the determination of the expected usage is based on achieving a
constant speed in consuming each component. The expected usage rate is an average units of that particular
option per vehicle. For example, if 600 of a total 860
units of the Accent model to be produced for the day

TABLE 2:
Model
Type

Door
Type

Engine

Trim
Level

TIM

Drive
Type

Air
Bag

Units
Required

A
B

4DR
3DR
3DR
4DR
5DR

13
13
13
15
15

GLS
GLS
GL
L
GL

A4
5
A4
5
A4

LH
RH
LH
LH
RH

0
0

4
2
3
3

c
D
E

22

Sample Problem Data

PRODUCTION AND INVENTORY MANAGEMENT JOURNAL- Third Quarter, 1996, APICS

Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.

require an air conditioner, the average or expected usage rate would be 600/860 or .70 unit per vehicle (i.e.,
R). Then, up to the kth vehicle in the sequence, k (0.70)
represents the total expected usage of air conditioners.
The expected usages for the other options are determined in a similar manner.
While Toyota's Goal Chasing Method I computes
the deviation Dik over all components feeding the
line, Hyundai's modified version does not calculate
the overall measure of deviation for the usage rates
for all parts. For example, if a given option, such as
transmission, has two possible choices (e.g., manual
or automatic), the calculation of Dik only includes
one of the two option choices. Hyundai reasons that
if each vehicle assembled requires a transmission,
and attention is focused on leveling the usage of one
type of transmission, then the usage rate of the other
transmission type will automatically be leveled.
Hyundai's approach was developed to provide a
reasonable sequence that approximates the result
produced by GC1 while reducing the computations
required.

different types of Accent model cars that are available

to the consumer.
We will illustrate the sequencing procedure with
a simplified version of the actual problem. The sample problem is summarized in Table 2. Let's assume
that the assembly line is scheduled to produce 13
total units of five different types of the Accent
model. Each model type has different option requirements. For example, type A is a 4-door model
with a 1300 cc engine, automatic transmission, GLS
trim, air bag, and steering wheel on the left side. The
line is balanced based on a weighted average cycle
time for the model types to be assembled, and each
required option is installed at the specified work station on the line. Hyundai rebalances the line each
time a new model type is introduced.
As previously stated, at each step of building the
sequence, the model type that minimizes the overall
measure of deviation is selected. To select the first vehicle in the sequence (k = 1), o il is calculated for each
Accent model type. For example, if model type A is
chosen as the first vehicle to assemble, then the deviations between the expected and actual usages of each
option are calculated as:

AN EXAMPLE OF THE APPROACH

The development of the daily sequencing list will be

demonstrated with data drawn from one of Hyundai's
Accent model lines. The Number-1 line in Plant 1 is
used to produce a variety of the Accent model for export markets. Currently, the line produces 860 units
per day. At present, 12 different factors are considered
when the daily sequencing list is developed for the
line. These factors are summarized in Table 1. Taking
into account that not all possible combinations of these
factors are compatible, there are approximately 200

1300 cc
3 Door
4 Door
AutoT/M
GLS Trim
GL Trim
Air Bag
LH Drive

(kRj - xj<k- 1) - s ij)

X 9/ 13 - 0 - 1 =
X 5/ 13 - 0 - 0 =
X 7/ 13 - 0 - 1 =
X 8/ 13 - 0 - 1 =
X 6/ 13 - 0- 1 =
X 4/ 13 - 0 - 0 =

1
1
1
1
1
1
1
1

X
X

9/ 13 - 0- 1
10/13 - 0 - 1

=
=

-4/13
5/ 13
-6 / 13
-5/13
-7/13
4/ 13
-4/13
-3 / 13

The overall deviation for choosing model type A is

DAl = J(-4/13? + (5 / 13? + (-6/13? + (-5/13) 2 + (-7 /13) 2 + (4/13) 2 + (-4 / 13)2 + (-3/13?

= 1.066
To measure the impact of model type B being selected as the first vehicle in the sequence, 0 81 is calculated using
the same set of option choices from the previous calculation.

0 81

J(-4/13) 2 + (-8/13) 2 + (7/13 f + (8/13f + (-7/13) 2 + (4 / 13) 2 + (-4/13) 2 + (10/13) 2

= 1.488

In a similar manner, we get the following results.

Dc1

1.462, 0 01

1.294, DE1

1.682

Since model type A generates the smallest measure

of overall deviation, model type A is selected as the

vehicle in the first position of the daily sequence list.
To select the second vehicle in the sequence (k = 2),
Di2 is calculated for each Accent model type that re-

MIXED-MODEL ASSEMBLY LINE SEQUENCING

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23

TABLE 3:

Result of Sequence on Component Usage

Model Type

3-Door
4-Door
5-Door
1300 cc Engine
1500 cc Engine
L Trim
GL Trim
GLS Trim
Automatic T/M
Manual T/M
RH Drive
LH Drive
Air Bag

quires more production. For example, since model

type A requires three more units in the daily schedule
(see Table 2), DA2 is calculated as follows.
(kRi- Xi<k- 1>- S;i)

2
2
2

1300 cc
3 Door
4 Door

DA2

X
X

9/13 - 1 - 1 = - 8/13
5/13 - 0 - 0 = 10/13
7/13 - 1 - 1 = -12/13

2
2
2
2
2

X
X
X
X

8/ 13
6/13
4/13
9/13
10/13

1
1
0
1
1

1
1
0
1
1

=
=
=
=
=

-10 / 13
-14/13
8/13
- 8/ 13
- 6/13

The overall deviation for choosing model type A is

) (-8/13)2 + (10/13) 2 + (-12/13) 2 + (-10/13) 2 + (-14/13) 2 + (8/13) 2 + (-8 / 13) 2 + (-6/13) 2

2.132

Calculating D;2 for the other model types we get the

following values.
D82 = 1.643, DC2
D 02 = 1.619,

1.243,

DE2 = 1.389

Therefore, since Dc 2 is the smallest value, model type

C is chosen for the second position in the sequence list.
The procedure is repeated until all vehicles to be
scheduled are assigned to the sequence list. As a result,
the complete sequence for this example will be:
A-C-D-B-A-E-D-C-A-B-D-C-A.
Table 3 illustrates the impact of the generated sequence list on the usage rates of the different components or options for the sample problem. It shows that
the usage rates for the different component or option
items are fairly well balanced. The same information
is presented in graphical form in Figures 1 and 2 for
the engine options. As shown, the assembly sequence
list generates a relatively steady demand for the two
types of engines, but the sequence list does not allow
a perfectly balanced mixed-model sequence.
24

Auto TIM
GLS Trim
GL Trim
Air Bag
LH Drive

Finally, Table 4 shows a portion of an actual sequence list containing 860 Accent models to be produced by the line for a given day after the sequencing
procedure is completed considering all 12 factors currently used by Hyundai (see Table 1). This list is used
to specify the assembly sequence of vehicles.

CONCLUSION
By using the heuristic procedure, Hyundai generates six daily sequence lists for all of its passenger car
assembly lines. However, it must be pointed out that
the sequence lists do not get executed exactly as originally developed for a variety of reasons. In some
cases, the painted body storage area may not have
enough capacity to support the developed sequence
list and may force changes to the sequence. Also, during the actual assembly operations, the sequence often
must be changed at the line due to defective parts or
the discovery of unacceptable workmanship. In fact,
due to shop floor conditions, Hyundai may experience
up to a 15% change in the sequence list.

PRODUCTION AND INVENTORY MANAGEMENT JOURNAL-Third Quarter, 1996, APICS

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From Hyundai's point of view, its version of the

mixed-model assembly sequencing procedure generates a reasonable solution in a timely manner. By generating reasonable mixed-model sequences in a timely
manner, Hyundai's heuristic procedure provides a
good compromise between the costs of developing a
sequence and the benefits of a reasonable solution. As
shown in Figures 1 and 2, the procedure would not
generate a perfect solution where the usage rate is constant and the balance delay is zero. Because of the everchanging shop floor conditions, it is impossible to find
the optimum solution to the problem. However, the
results have been adequate in the given situation
where the conditions have been very complex and unpredictable. While the detail of the situation described
in this article may be specific to Hyundai, its experience can provide some general insights into the mixedmodel sequencing problem for other organizations.

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ACKNOWLEDGMENT

The authors wish to acknowledge the valuable comments and assistance of H. M. Koo, Executive Managing Director of Hyundai Motor Company.
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MIXED-MODEL ASSEMBLY LINE SEQUENCING

Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.

25

About the Authors-

EDWARD A. DUPLAGA, PhD, is an assistant professor of operations management in the Department

of Management at Bowling Green State University. He received his PhD from the University of Iowa. His
research has focused on several aspects of manufacturing planning and control systems and has appeared
in the Journal of Operations Management, International Journal of Production Research, and International Journal of Production Economics. Dr. Duplaga is a member of ASQC and the Toledo
Chapter of APICS.
CHAN K. HAHN, PhD, is NAPM Professor, Owens-Illinois Professor, and Distinguished University
Professor of Management at Bowling Green State University. He teaches in the areas of purchasing/
materials management, production planning/control, and manufacturing/materials strategy. His past and
present leadership positions include associate editor of the Journal of Purchasing and Materials Management, vice president of the Decision Sciences Institute, and Production/Operations Management Division chair of the Academy of Management. He is also a past president of the Midwest Decision Sciences
Institute. He received his MBA and PhD from The Ohio State University.
DAESIK HUR is currently pursuing his MBA at Bowling Green State University. He received his BA
and MA in economics from Yonsei University, Korea. Mr. Hur worked as a research staff member of the
corporate planning department of Hyundai Motor Company.
26

PRODUCTION AND INVENTORY MANAGEMENT JOURNAL-Third Quarter, 1996, APICS

Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.