HONDA

Introduction

In a fast-changing world and in a turbulent automotive industry in particular,

Honda seeks to remain compact and efficient. With PQM Honda has introduced
a company approach that is based on systematic methods and which aims to
achieve excellent results through a focus on customers, continual quality
improvement, and participation by everybody. Hondas goal is to improve the
feasibility and to strengthen the presence of Honda in the world automotive
market.

The Honda story begins in 1948 when they began by producing an auxiliary
engine equipped bicycle. From those humble beginnings Honda has grown to
become one of the worlds automotive giants rivalled only by Toyota in terms of
global profitability. I visited their local showroom as part of research for this
assignment to see if I could discover the secret of their success. A tall order it
must be admitted but having already had experience of the management
approaches of Ford, Toyota it was the differences in approach that might be
interesting.
KAIZEN

Since 2000, Honda has cut manpower requirements and utility costs by
one-third and one-fourth respectively. It made these gains through the
introduction of lighter, more versatile manufacturing equipment along
with new labor-saving processes including expanded usage of modules.

Welding costs, for instance, were cut in half by adopting "flexible"

welding jigs and general-use pallets. They have developed jigs that were
not dedicated to specific models. Honda have also installed common
transport processes employing generaluse pallets and, to the extent
possible, standardized body specifications between models.

Spot welding speed was doubled by switching to electric-driven robots

and by adopting a new server gun welder. Developed and produced by
Honda Engineering Co., the new welder contributes to 46-second tact, 20
percent faster than before.

Bodies "in process" and energy consumption in paint shops were slashed
25 percent and 30 percent respectively. Through simplified preprocessing
and improved zoning, shop dimensions were reduced by one-third from
those of its predecessor.

General-use carriers, designed with common pickup points, allow the paint
shop to accommodate all models in Honda's present and future lineup.
Plus, the unit's small body mass and light weight contribute to energy
savings.
Quality Initiatives: Aiming for 120%
product quality

Honda aims for 120% product quality. If 99% of the products we make are
perfect, that would seem like a pretty good record. However, the customers
who become the owners of the remaining 1% will surely consider their products
100% defective. It is unacceptable that even one customer in a thousandeven
one customer in ten thousandshould receive a defective product. That's why
Honda have to aim for 120%." When founder Soichiro Honda said this he
defined the company's fundamental approach to quality: what it means to strive
to be a company society wants to exist. Determined to meet or exceed the
expectations of customers, Honda is taking new initiatives to reach ever-higher
product quality standards.

To strengthen customer trust by offering products founded in safety and

offering a new level of outstanding quality, Honda has created a quality cycle
that continuously enhances quality at every stage: design, development,
production, sales and after-sales service.
Implementing the Global Honda Quality
Standard (G-HQS)

As Honda's production and parts and materials sourcing expand globally, a

shared global quality assurance standard is essential to ensuring that all Honda
facilities continue to support 120% product quality.

To address this need, Honda established the Global Honda Quality Standard (G-
HQS) in April 2005. Based on the ISO 9001*1 and ISO/TS 16949*2 standards
under which Honda facilities in Japan and around the world have been or are to
be certified, the G-HQS serves to communicate the considerable knowledge
Honda has gathered in producing quality products and help prevent issues from
recurring. It will continue to conform to ISO certification standards.

As of March 2010, 40 out of 42 Honda production facilities around the world

have attained ISO certification, and the two remaining facilitiesboth new
are engaged in the certification process.

The G-HQS is designed to enhance the quality of Honda-brand products

manufactured and sold worldwide. By ensuring that all facilities comply with
these standards, we can better facilitate the interoperation of quality
assurance systems at different worksites, contributing to quality assurance not
only in production activities, but also in distribution and service.

*1 ISO 9001: An international quality control and quality assurance standard

*2 ISO/TS16949: An international quality management system standard for the
automotive industry
Recall System & other measures

Honda strives to assure safety, prevent pollution, and address other hazards by
operating a recall system designed to prevent accidents and protect users of
automobiles and other products and by taking other actions to comply with
applicable laws.

When Honda determine that product issue requires action, they quickly report
the issue to governmental authorities in accordance with individual countries'
regulations and contact owners by means of direct mail from dealers or by
telephone to provide information about how they can receive free repairs.
Associated information is also provided on Honda's website and through the
news media as necessary.

A Quality Committee is quickly convened in accordance with internal Honda

rules, and decisions concerning market measures are made by its chairperson in
consultation with members including experts from departments involved with
quality issues who are capable of making objective

QUALITY CIRCLES

Honda has stated that it also has a global policy for 100% coverage by
Quality Circles in the coming years and is already well on the way towards
achieving that target.

Interestingly there was no evidence of Jidoka which is so obvious at Toyota. I

asked what happens if there is a stoppage at one of the production points and
was told that they do not stop the line. There are additional staff who will go to
assist overcome the problem. When asked about balance between customer
demand and production volume, the answer was that they can then adjust the
product mix not only within the plant but across plants. Generally whilst demand
may vary from model to model on a short term basis, the overall demand does
not fluctuate so much, so there is always an element of pull.

TQM AT HONDA

The body in white welding shop was particularly interesting partly because of its
compactness and also the total robotisation of the assembly process. With
virtually no space between operations and with 30 complex machines they can
complete a total changeover in less than 3 minutes from one model to another.
The plant produces over 2 shifts and maintenance is carried out on the third.
Source: Official Website (http://www.honda.com/)
ASV Advanced Safety Vehicles

Honda ASV-3 vehicles are equipped with several new advanced safety
technologies developed by Honda, including a system that uses cameras and
radar to provide drivers with information on approaching vehicles and obstacles
in the road; a system that offers driver support through steering and brake
assist; and an emergency response system designed to aid in rescue efforts in
event of an accident. Honda plans to conduct further research and development
of technologies deployed in the ASV-3 research vehicles with a view to
implementing them in mass production vehicles.

Honda ASV-3 vehicles represent the culmination of five years of progress since
the introduction of the previous generation Honda ASV-2 safety technologies in
2000. In addition to image recognition technology used to analyze images
captured by on-board cameras, and radar technology used to detect obstacles in
the road, ASV-3 vehicles use inter-vehicle communication to ascertain the
condition and position of automobiles, motorcycles and pedestrians relative to
each otheran especially important capability in situations where cameras and
radar alone may be insufficient to gather such data. The system supports
motorists decision-making by rapidly relaying information in a clear, easy-to-
understand fashion. This includes audio and visual warnings for motorcycle
riders and automobile drivers, and simple tactile signals for drivers such as
vibrating the brake or accelerator pedal or applying torque to the steering
wheel.
Motorcycle Airbag System

Honda has been proactive in fostering driver and rider training as well as
developing and implementing active safety technologies designed to prevent
accidents and passive safety technologies designed to mitigate injuries in the
event of an accident.

Honda has long been proactive in the development of traffic safety programs.
In 1970, Honda established its Traffic Safety Promotion Division, which became
the focus of the company's support for rider and driver training initiatives.
Honda has also developed the Riding Simulator and other original training
devices. In the area of active safety, Honda has developed the Combined Brake
System and Anti-lock Brake System, applying these technologies in an expanding
range of production motorcycle to help riders maintain fuller control over their
vehicles. The effort to help prevent accidents involving motorcycles through the
development and implementation of safety technologies has always been a top
priority for Honda.

Passive safety measures, designed to help protect riders in the event of an

accident, are an important part of Honda's approach to motorcycle safety and
the company's ongoing research and development efforts. As a result of these
efforts, Honda has now succeeded in creating the world's first production
Motorcycle Airbag System.

The Secret of Honda?

It was clear that whilst they were aware of what other producers were doing,
they relied very much on their own creativity both in terms of product and also
process innovation. Their approach to Lean Manufacture was clearly tailored to
suit their specific requirements and whilst it was also clear that the principles
of Kanban were evident in the balance of the work content of each operation it
could not be visually detected specifically. Secondly, it was very clear that they
also involved their workforce as a vital source of creativity and just as with
Toyota, Quality Circles were given a high priority although with typical Honda
independence they are called NH Circles (NH meaning - New Honda).

Scaling Heights

By applying design and development expertise to design and development,

production preparations, and production (mass production) in order to allow the
creation of drawings designed to facilitate manufacturing and develop
manufacturing control techniques that limit process variability, Honda are today
able to deliver a new level of enhanced quality.