Research On Optimization Strategies Of FAW-VW Quality Assurance System

FAW Volkswagen Automotive Co., Ltd.(FAW-VW) was established in 1991. China FAW group and Germany VW AG are cofounders of FAW-VW, a joint venture production enterprise of passenger vehicles. It was the first modern automobile manufacturing base constructed on the economies of scale. The company has advanced vehicle manufacturing technology and processes, modern management concept and management team and superior management information system.FAW-VW is an outstanding representative and leader in China automobile industry, which has excellent reputation all along. Nevertheless, the company was confronted with the choice of development strategy in the increasingly severe competitive environment. In 2009, Chinese domestic automobile production and sales was 13 million, which exceeded the United States. China became the world’s largest automobile manufacturer. The world leading multinational automobile groups regard China as a market of strategic importance, increasingly expand their production capacity; furthermore, national independent brand automobile companies are springing up like mushrooms. China auto market production capacity has far exceeded its demand, thus product homogeneity trend intensified, which led to the major automobile manufacturers’ frequent “price war”. Behind the price war, the quality is inevitable to be reduced; hence vehicles quality and users’ perception declined. All that will increase the intensity of the vehicle enterprise price war to keep the market share, which causes a vicious cycle. Consequently, Chinese automobile industry and automobile consumption users both face huge losses.Therefore, in the severe homogenization automobile market, how to break this vicious circle, and how to create their own core competitive brand product, are the key questions which every vehicle manufacturing enterprise must settle. Since its founding date, the FAW-VW has been adhering to the leading technology, the principle of the supremacy of the quality; through the differentiation strategy, especially the quality differentiation strategies, the company created a brand philosophy of “ Enjoy the high quality car”, making great efforts in the brand building.This paper concentrated on the research on optimization strategies of FAW-VW quality assurance system. Based on problem-solving strategy-- proposing and analyzing the problems, and then developing measures, it gives a circumstantial illustration of the FAW-VW optimization strategies of quality assurance system and its scheme and implementation.Firstly, based on the existing problems of the FAW-VW current product quality and quality assurance system, and on the four main stages of the product birth--development, purchasing and supply, production, after-sales, this paper mainly analyze the specific reasons for these problems, and figure out the key factors, and select point problem for subsequent optimization strategies development and implementation.Secondly, before discussing the optimization strategies, this paper analyzes the principles of the implementation of the quality assurance system optimization strategy and the internal and external environment, which is a very important prerequisite for the implementation of the follow-up optimization strategies.Finally, on the basis of problems and causes analysis mentioned before, this paper illustrates the customer-oriented optimization strategies of quality assurance system which are under the principle of company’s strategic objectives, and continuous innovation; it as well as states the structure, process and security of the information system when implementing the strategies.In the light of the presentation of the optimization strategies of quality assurance system and future optimization measures in quality management, this paper aims to enhance the operation efficiency and effect of the quality assurance system, and ensure the promotion of the final product quality and customers’ satisfaction, and lay a foundation for the company’s future development and strategic implementation.