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. Honda’s 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 world’s 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 thousand–even one customer in ten thousand–should

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 facilities—

both 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 other—an 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.