honda final

7/28/2019 Honda Final

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HONDA (Automobile Industry) 2013

Group #2

H.Zeeshan Aslam

Methodology:We have administered our final project of total Quality Management as to Honda Atlas. To rise to the

challenge we have used following modes to conduct our survey:

Questionnaires

Personal Interviews

Prior to our meeting with the Raza Ahmed Zaidi, we have made our self made questionnaire in order to

dig up important information as to Total Quality Management of Honda Atlas. We floated the

Questionnaires among all the employees from top to bottom. They participated actively in our survey

for their own company’s goodwill. One of the attendants appreciated our survey owing to it rests on the

significance of quality for a multinational organization.

Moreover, we have used a lot of other resources to enrich our research. We delved into different books

as to Total Quality Management for Large Organizations. Also, we exploited the consumption of internet

so as to augment our research as to Honda International.

Six basic concepts of Total Quality Management:

Tqm requires six basic concepts:

1. A committed and involved management to provide long term top to bottom organizational

support.

2. An unwavering focus on the customer, both internally and externally.

3. Effective involvement and utilization of the entire work force

4. Continuous improvement of the business and production process.

5. Treating suppliers as partners.

6. Establish performance measures for the processes.

Let’s discuss each one by one:




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H.Zeeshan Aslam

QUALITY POLICY :

At HONDA we are committed to focus all are activities leading to:

1. Manufacturing high quality products.

2. Customer satisfaction.

3. Service to society.

4. Maintain market leadership.

Honda atlas cars Pakistan limited is a quality conscious company. That’s why Honda

atlas cars Pakistan limited is the first automobile company in Pakistan who has

achieved “ISO 9002” certification.




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H.Zeeshan Aslam

SUMMARY:

Honda atlas cars company is a joint venture between Honda motor company Japan and

Honda motor company limited Japan has 51% shares in this joint venture, so the main

profit shares as well as designing, development ideas and costs are bear by Honda

motor company Japan ltd. In all over the world, engines of almost of all kinds of

product Honda is a “giant” manufactures in the engine industry. Honda produces boats

and generators also.

Honda atlas cars company Pakistan limited is really well known motor vehicle company.

We found no contradiction when we compare the statement of Honda staff with general

dealers and customers.

Honda atlas cars, especially consumer’s cars, sells due to brand name of Honda. So

Honda is enjoying a sound reputation in the market. Honda cars regarded as # 1 due to

high quality engines and several other features. Whereas, the most efficient cars (diesel

cars) are being produced by Honda’s important competitor “Toyota”.

Honda has contributed a lot in gas efficient cars, by introducing the Honda civic hybrid,

stand at # 2 after the Toyota in gas efficient cars. The prices of the few models of

Honda atlas cars are lower as compared to the prices of their competitors.

Honda atlas cars maintains quality standards. Most of the depreciation is computerized.

Products are manufactured according to scientific standards.

Honda atlas cars gives priority to consumer satisfaction and it is the constant endeavor

of the Honda atlas cars of Pakistan is to

“Achieve the # 1 customer satisfaction”




Group #2

H.Zeeshan Aslam

1: What is TQM:

TQM is a management approach to long-term success, through achieving complete

customer satisfaction. TQM is the complete approach to improve organizational

performance and effectiveness. "A way of life for an organization as a whole, committed

to total customer satisfaction through continuous process of improvement, and the

contribution and involvement of people" TQM is a participative management style that

stresses total staff commitment to "customer satisfaction". TQM is the part management

organized for the use of creating and implementing a continuous improvement process

that constantly improves on the organization's effectiveness and also their efficiency.

The main responsibility of quality lies not on the workers but on the management on all

levels.

2: Implication of TQM in Industry:

Success of TQM depends on how well a company evaluates the processes, products,

and the markets of today to try and find out what the customer of tomorrow wants. It has

been evident from past marketplaces that companies show more support to short-term

interests that even if they do have a long-term strategy if often lacks commitment from

top management.

Implementation and the success of TQM can be seen clearly using the example of

Honda. Many other Japanese car manufacturers have also followed pursuit. When

trying to implement TQM it requires both behavioral and cultural change. A successful

TQM brings together management, behavioral and cultural commitment to customer

quality.




Group #2

H.Zeeshan Aslam

Approaches to Implementing TQM:

There are three approaches to implementing TQM.

Firstly there is the "concept of management". This basically fine tunes andrevitalizes management in producing bottom line products or services resulting

hopefully in customer satisfaction. With this approach management and individuals of

the organization are usually operating at fairly effective levels and have already taken

the idea of TQM aboard. Kawamoto CEO of Honda implemented TQM with the advice

from the founder of the company, Soichiro. When TQM was implemented at Honda

production lines were reconfigured to speed the process and allow greater flexibility.

Engineers were expected to create designs that could be manufactured more efficiently.

Honda's new strategy, which the CEO describes as "customer focused", has increased

sales and improved profit.

The second approach can be seen as a "system of management". This approach is

used when TQM is already in place but needs to be brought up to speed. The basic

area of this approach is to decide conflict, decision-making, meeting management as

well as traditional areas of measurement and continuous learning. With this approach

the Q-STEP is used. The Q-STEP simplifies quality into five basic competencies.

Q-Quality Maximization,

S-Skill Maximization,

T-Team Participation,

E-Excellence for customers,

P-Prevention of waste.

The Q-STEP works with existing culture and takes advantage of current "good

practices".




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The final approach is usually the most common and is also the cause of most failure.

This approach usually aims mainly at changing behavior not culture that drives or

supports that behavior. TQM has in the past failed however there here have been many

reasons why, but the most common are

1. Lack of management commitment- executives may demand TQM because they

may see it as purely a cost-cutting strategy.

2. Poor timing and pacing-organizations sometimes implement TQM when there is

no compelling need.

3. Wasted education and training- TQM can fail because organizations are not

committed enough on the training of the individual.

4. Lack of TQM concepts being implemented such as Just in Time, Quality Circles

and Lean manufacturing.

It is a management concept that could help weakening organizations achieves both a

competitive advantage over others, as well as increasing sales, customer satisfaction

and profit levels; similarly TQM can help a successful company build a better

relationship with its customers, supply base and inevitably increase its bottom line. Theprincipal emphasis of modern business with its products and services is quality. The

total quality management (TQM) approach is summarized as gradually enhancing

the product and/or service quality. The focus is to “get things right first time, all of the

time”. In the long run, the cost of this approach will be less than rectifying quality failures

after they have been found. It reflects that TQM relies on the inputs of management,

workers, suppliers, and even customers, so as to match these with customer

requirements. In TQM, all manufacturing and business transactions are involved in a

continuous process of quality enhancement. Nowadays, TQM has extended from the

statistical monitoring of manufacturing processes to customer-oriented processes of

service improvement. It emphasizes providing high-quality products or services

consistently.




Group #2

H.Zeeshan Aslam

3. HONDA BACKGROUND:

Honda atlas cars Pakistan limited is a joint venture between Honda motor company

limited Japan, and the atlas group of companies, Pakistan. The agreements signed

between the two sponsors are for technical collaborations for development parts and

systems for manufacture of Honda cars in Pakistan. Pakistani and Japanese cultures

have blended exceptionally well to form a professional team of dedicated specialist.

The company was incorporated on November, 1992 and joint venture agreement was

signed on august 1993. The ground breaking ceremony was held on April 17, 1993 and

within a record time of 11 months, construction and erection of machinery was

completed. The first car rolled off the assembly line on may 26, 1994.

Official inauguration was done by president of Pakistan, Sardar Farooq Ahmad khan

Leghari. Mr. Kawamoto president of Honda motor company limited Japan also

present to grace the occasion. The company is listed on Karachi, Lahore and Islamabad

stock exchanges. On July 14, 1994, car bookings started at six dealerships in Karachi,

Lahore, and Islamabad since then the dealerships network has expanded and now the

company has sixteen 3s (sales, service and spare parts) and thirty 2s (service and

spare parts) pit shops network in all major cities of Pakistan. Since the commencement

of production in 1994 till march31, 2005, the company has produced and sold over

77,500 cars. All dealerships are constructed in accordance with the standards defined

by Honda world over. The quality of local parts is thoroughly checked to meet stringent

international standards. Honda always strives to give outstanding service to their valued

customers. In addition to providing regular service to customers, the company also

regularly conducts service campaigns, to facilitate customer's need for service. This has

given customers absolute confidence in Honda cars, clearly evident from the ever increasing sale volumes.

http://www.honda.com.pk/dealers.htm

http://www.honda.com.pk/dealers.htm




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It is the constant undertaking of Honda atlas cars (Pakistan) limited to achieve no .1

customer satisfactions. Honda atlas cars (Pakistan) limited is committed to meet

customer expectations, and to provide good value for money. In 1996 the full model

change of Honda civic introduced, after just one and half year of commencement of production. Three models in civic vti, Exi and lxi with 1.6l and 1.5l engines were

introduced in vti and exi models respectively. In 1997 Honda city 1.3l car in et and ex

models and Honda city exi with 1.5l were launched.

4. Profile of Honda:

Honda headquarters building in Minato, Tokyo

Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo

Stock Exchange and the New York Stock Exchange, as well as exchanges in Osaka,

Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland.

The company has assembly plants around the globe. These plants are located in China,

the United States, Pakistan, Canada, England, Japan, Belgium, Brazil, México, New

Zealand, Malaysia, Indonesia, India, Thailand, Turkey, Taiwan and Peru. As of July

2010, 89 percent of Honda and Acura vehicles sold in the United States were built in

North American plants, up from 82.2 percent a year earlier. This shields profits from the

yen’s advance to a 15-year high against the dollar .

http://en.wikipedia.org/wiki/Minato,_Tokyo






http://en.wikipedia.org/wiki/Tokyo_Stock_Exchange


http://en.wikipedia.org/wiki/New_York_Stock_Exchange

http://en.wikipedia.org/wiki/Fukuoka,_Fukuoka

http://en.wikipedia.org/wiki/Fukuoka,_Fukuoka

http://en.wikipedia.org/wiki/New_York_Stock_Exchange









Group #2

H.Zeeshan Aslam

Honda's Net Sales and Other Operating Revenue by Geographical Regions in

2007

Geographic Region Total revenue (in millions of ¥)

Japan 1,681,190

North America 5,980,876

Europe 1,236,757

Asia 1,283,154

Others 905,163

DIVISION:

American Honda Motor Company is based in Torrance, California. Honda Canada

Inc. is headquartered in Markham, Ontario, their manufacturing division, Honda of

Canada Manufacturing, is based in Alliston, Ontario. Honda has also created joint

ventures around the world, such as Honda Siel Cars and Hero Honda Motorcycles in

India Guangzhou Honda and Dongfeng Honda in China, Boon Siew Honda in Malaysia

and Honda Atlas in Pakistan. Following the Japanese earthquake and tsunami in March2011 Honda announced plans to share equally production at its UK plants. The decision

was made to put staff at the Swindon plant on a 2 day week until the end of May as the

manufacturer struggled to source supplies from Japan. It's thought around 22,500 cars

were produced during this period.

http://en.wikipedia.org/wiki/Japanese_yen



http://en.wikipedia.org/wiki/American_Honda_Motor_Company

http://en.wikipedia.org/wiki/Honda_Canada_Inc.


http://en.wikipedia.org/wiki/Markham,_Ontario

http://en.wikipedia.org/wiki/Honda_of_Canada_Manufacturing


http://en.wikipedia.org/wiki/Alliston,_Ontario

http://en.wikipedia.org/wiki/Honda_Siel_Cars_India

http://en.wikipedia.org/wiki/Hero_Honda

http://en.wikipedia.org/wiki/Guangzhou_Automobile_Industry_Group

http://en.wikipedia.org/wiki/Dongfeng_Honda

http://en.wikipedia.org/wiki/Honda_Atlas

http://en.wikipedia.org/wiki/Honda_Atlas

http://en.wikipedia.org/wiki/Dongfeng_Honda

http://en.wikipedia.org/wiki/Guangzhou_Automobile_Industry_Group

http://en.wikipedia.org/wiki/Hero_Honda

http://en.wikipedia.org/wiki/Honda_Siel_Cars_India

http://en.wikipedia.org/wiki/Alliston,_Ontario



http://en.wikipedia.org/wiki/Markham,_Ontario



http://en.wikipedia.org/wiki/American_Honda_Motor_Company





Group #2

H.Zeeshan Aslam

Motorcycles:

Honda is the largest motorcycle manufacturer in Japan and has been since it started

production in 1955. At its peak in 1982, Honda manufactured almost three million

motorcycles annually. By 2006 this figure had reduced to around 550,000 but was still

higher than its three domestic competitors

During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese

motorcycle market and began exporting to the U.S. Working with the advertising

agency Grey Advertising, Honda created an innovative marketing campaign, using the

slogan "You meet the nicest people on a Honda. This campaign suggested that Honda

motorcycles were made for the everyman. The campaign was hugely successful; the

ads ran for three years, and by the end of 1963 alone, Honda had sold 90,000

motorcycles.

VISION AND MISSION STATEMENTS

Basic Principles

Respect for the individual. The Three Joys (buying, selling and creating)

VISION

“Focusing on “satisfaction” (customer’, associates’ and shareholders’) with challenging

spirit and flexibility, we are dedicated to supplying latest generation cars with

advanced tech--neology, greater fuel efficiency and competitive prices, along with

friendly and efficient after sales back up, maintain “quality” as core of all activities.”

According to Pakistan:

“Striving to be a company that society wants to exist by sharing joys with people

throughout the world creating products that maximize the joy of customers, with speed,

affordability and low CO2”

http://en.wikipedia.org/wiki/Grey_Advertising

http://en.wikipedia.org/wiki/Grey_Advertising




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MISSION (worldwide)

"Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction."

Hierarchy of Honda:

In Honda hierarchy depends upon the current scenario and situations. They follow both

horizontal and vertical line of hierarchy according to the need and demand of the

situation.

As Honda is Japanese based organization and it follow the structure with few hierarchal

levels and narrow span of control i.e. having flat structure.

Managerial Roles:

The managers at Honda practiced in all directions either they continuing in doing all

perspectives of managerial jobs i.e. organizing, planning, leading and controlling. Honda

arrange training session for their managers for their penetration in the system become

polished

i)Planning.

In planning, the managers at Honda set the specific goals to achieve their task and

decide all alternatives how to best achieve them. E.g. whenever they plan to import

Accord Civic and any other model, they set the goals that how it can be suited to our

environment.

ii)Organizing

In organizing managers at Honda allocate and arrange human and non-human

resources so that their plan can be carried out successfully. Like it allocate the

machinery and advanced technology in production unit .




Group #2

H.Zeeshan Aslam

iii)Leading

At Honda Labours and subordinates to get optimum task achievement even by

satisfying them accordingly.

iv)Controlling

Honda’s manager regulates organizational activities so that actual performance

conforms to expect organizational standards and goals e.g. Honda’s goal is to achieve

customer satisfaction ratio so that can evaluate overall performance of their after sales

service centre regularly.

Organizational Culture

Honda’s organizational culture is a beauty in itself. All members, all employees are in

production department having the same shirts and caps with Honda ’s logo.

Organizational culture is also called as corporate culture. It represents the internal

culture of the organization.

6. Quality System of Honda:

Building a rapid market quality enhancement system around a Quality Center that

centralizes customer feedback

We have established a Quality Center to bring together the various components of our

organization concerned with products quality data, allowing us to enhance our

worldwide ability to both prevent quality issues and quickly detect and resolve them

when they occur. The facility gathers quality-related data from dealers in Japan and

overseas through service departments and the Customer Relations Center. Measures




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and policies for preventing quality issues are then developed based on the issues

identified from this data and provided as feedback to R&D and production departments

responsible for operations including product design, manufacture, and part supplier

relations.




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Aggressively ensuring quality in both design and manufacturing

Working in partnership with suppliers, Honda is involved in a companywide effort to

deliver products with a new level of enhanced quality. To ensure high quality, Honda

conducts aggressive quality assurance activities from the dual perspectives of design

and manufacturing

1. Assuring quality through drawings

Honda's R&D departments create drawings for maximum ease of manufacture in order

to limit process variability and prevent human error during the manufacturing process.

These drawings serve as the basis of our quality assurance efforts. Specifically,

engineers utilize a database of measures and techniques for preventing past market

quality issues and other information as they communicate closely with manufacturing

departments during the initial development stage.




Group #2

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2. Assuring quality through production processes

Honda's production departments establish manufacturing control items and standards

for each part, process, and work task based on designers' intentions in order to prevent

product quality issues. Engineers then use these manufacturing control items and

standards to verify manufacturing variability as they work to prevent quality issues.

3. Assuring part quality through supplier audits

Assuring the quality of procured parts is an important element in delivering high-quality

products. Honda visits its suppliers' manufacturing facilities to conduct quality audits

based on the

"Three Reality Principle," which emphasizes "going to the actual place," "knowing the

actual situation," and "being realistic." These audit activities are conducted for both the

production preparation and mass-production stages of supplier operations. Experts in

the development and production of individual parts visit manufacturing facilities and

conduct audits of suppliers' quality systems and their implementation.

Honda then works to improve part quality through activities that emphasize

communication with suppliers, for example by sharing audit results and cooperating to

discover measures for improving quality.




Group #2

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Using second-generation line end testers (LETs) to inspect electronic control

systems

Use of electronic control systems in vehicles has grown dramatically in recent years as

part of an effort to achieve more environmentally friendly designs and improve driver

and passenger convenience and comfort, creating a need for efficient inspection

methods to assure the quality of these components.

To this end, Honda has installed line end testers (LETs), an inspection and diagnostic

system developed in-house, at production plants in Japan and overseas.

7. Tools/Techniques for TQM In Honda:

ENVIRONMENTAL POLICY:

HONDA ATLAS CARS (PAKISTAN) LIMITED, being responsible member of society

considers the preservation of the global environment as a crucial concern reviewed on

30th June, 2004.Our environmental philosophy is firmly based on the following

guidelines.




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Recognize the impacts of the significant aspects on the environment

resulting from our activities, products and services.

Operate in compliance with relevant environmental laws, regulations andother requirements that apply to our activities.

Create environment friendly attitude among associates.

OTHER BUSINESS PRINCIPLES OF HONDA:

Following are different policies &principles of Honda namely:

MANAGEMENT POLICY:(respect, man power importance, 3s spirit, 3A “hand on

approach”, be a corporate citizen).

CORPORATE POLICY: (ideal working environment , adequate return to share holders,

dynamic marketing &manufacturing).

PRIORITY STANDARDS OF CONDUCT:(safety ,quality ,productivity).




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HUMAN RESOURCE :(hiring competent associates ,providing opportunities for internal

mobility through personal training and development, enabling them to take higher

position).

SAFETY ,HEALTH AND ENVIORMENT:(comply with applicable Govt. requirements,

avoid risks to human health ).

OPERATING PRINCIPLES:(always keep the dead line, never make excuses, team

work).

8.Product Excellence and Innovation:

In order to provide better product, excellence and innovation Honda motors provide their

strategies in a appropriate way of manner to maintain their market supremacy in all over

the era with several TQM procedures.

Human Capital:

Atlas Honda Limited is committed to create a working environment where there is

mutual trust and respect and where everyone feels responsible for the performance

and reputation of the company.

It is an equal opportunity employer which recruits, employs, promotes and offers career




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advancement to employees on the sole basis of merit, skills, ability and qualification

needed for the work to be performed.

It is committed to create an organizational environment in which individuals are fairly

treated, encouraged and empowered to contribute, grow and develop themselves andhelp to develop each other, and therefore achieve excellence in their performance.

Consumers:

Atlas Honda Limited is committed to provide branded products and services, which

consistently offer value in terms of price and quality. Products and services are

accurately and properly labeled, advertised and communicated.

It actively promotes safe practices throughout value chain- from distributors to end

users. It is committed to provide customers with products and services that are safe

and reliable.

Business Partners:

Atlas Honda Limited is committed to establish mutually beneficial relations with its

suppliers, customers and business partners. In its business dealings it expects its

partners to adhere to business principles consistent with its own.

The Environment:

Atlas Honda Limited is committed to making continuous improvements in the

management of its environmental impact and to the long-term goal of developing a

sustainable business. It will work in partnership with others to promote environmental

care, increase understanding of environmental issues and disseminate good practice.

Innovation:

Atlas Honda Limited makes innovations to meet consumer needs. It respects the

concerns of consumers and of society. It works on the basis of sound research,

applying high quality standards.




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Competition:

Atlas Honda Limited believes in fair competition and supports development of

appropriate competition laws. Atlas Honda Limited and employees will conduct their

operations in accordance with the principles of fair competition and all applicable

regulations

9. Customer Satisfaction:




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CUSTOMER SERVICE CENTERS:

All the authorized dealerships in Pakistan are a source of customer satisfaction. To

facilitate the customers for any assistance they require, we have a separate

department, called Customer Relations, at the head office. This department is

supported by the subsequent Customer Relations Officers at all dealerships. The

purpose of Customer Relations Department and Customer Relations Officers is to

enable our customers in getting any sort of help required by them.

FREE SERVICES:

Honda is a customer service conscious company, for which it is always looking for

avenues to develop further relations with the customers who have already purchased

the cars. We consider purchase of car as the beginning of relations with customers. To

prolong this relationship and encourage the customers to keep on coming to the

dealership, to get theirs cars maintained the HONDA way we provide three FREE

CHECK-UP SERVICES to our customers.

These are basically three periodic check-ups at 1,000 Km, 5,000 Km and 10,000 Km

mileage which are normally done after 1 month, 3 months and 6 months of running

the car. Other than providing service to customers another reason for this facility is to

stress on the importance of periodic maintenance. For these free services the labor is

not charged, where as the customer has to pay for only the consumable like engine oil,

oil filter, etc..

REPAIR AND MAINTENANCE:Honda is providing regular trainings to the dealers' technicians. The trainings cover all

aspects of the cars including the periodic maintenance, diagnostics, trouble shooting

and repairs according to HONDA standards. From this we want to facilitate the

customers in maintaining their cars in top-most condition and enjoying the comfort and




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performance of the luxury vehicles they own. It is our effort to have uniform service

standards made available at all dealerships in accordance with the international Honda

standards.

ANNUAL SURVEYS:

HONDA ATLAS CARS PAKISTAN LIMITED arranges the annual surveys in which

different activities are done:

1. Customer Satisfaction

2. Market Share

3. Customer Choice

a. Reading Habits

b. TV Watching Habits

4. Brand Survey

5. Social Group

6. Education Level

7. Market Trend

10. Products, Features and Design:




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SWOT ANALYSIS:

STRENGTHS:

The image of the company is well established.

HONDA is offering comfort, power and style with its vehicle.

It delivers the genuine parts with the 6 month unique warranty.

It uses latest technology and luxurious interior in the vehicles.

Enjoying 55 to 60% market share at present

Japanese technology

WEAKNESESS:

The booking procedure is too long, as it takes done 6 months to get the orders

delivered.

Less Participation in Small Towns

Paying big royalty to Japanese

Availability of substitutes




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OPPORTUNITIES:

The HONDA Company can expand the network of its distributors all over

Pakistan.

Opportunities for export in the developing countries

Low quality of Chinese

Growing market

THREATS:

A threat is in the form of premium which the distributor are taking from the

customers and thus disturbing credibility of Honda about stability of prices.

The economic environment is characterized by more uncertainty and it respond

more to the international scenarios.

Political instability, Govt. Taxes and Chinese companies are a threat.

Bad economics situations

Increased prices of petrol

Availability of cheap Chinese spare parts




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SUGGESTIONS:

After visiting this organization and go through our analysis we are at the position to give

some suggestions:

HONDA ATLAS CARS should add more product line because it can cash

its reputation.

HONDA ATLAS CARS should explore new market.

HONDA ATLAS CARS should work on the more improvement in its

product line .i.e. cars (both city and civic), generators, and boats.

HONDA ATLAS CARS should improve in producing the gas efficient cars.

HONDA ATLAS CARS conducts its business responsibly in a way to

make sure Health, Safety and Protection from the environmental aspects

of its associates and the society.

System, procedure even it should about after period modification to make

them stylish and according to the trends of the market.

Need to improve newspaper advertisement format and style.

Inform current opportunities for job, internships etc.

Appendix:

Q1:




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honda final

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