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TitleProject Tqm Honda
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Page 1

Submitted By: Ejaz Ahmed MBA 19B

Submitted To: Hakim Khan

9/12/2013

TOTAL QUALITY MANAGEMENT OF HONDA

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TOTAL QUALITY MANAGEMENT OF HONDA

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CURRENT MARKET POSITION

With high fuel prices and a weak U.S. economy in June 2008, Honda reported a 1% sales

increase while its rivals, including the Detroit Big Three and Toyota, have reported double-

digit losses.

Honda's sales were up almost 20 percent from the same month last year. The Civic and the

Accord were in the top five list of sales.

Analysts have attributed this to two main factors. First, Honda's product lineup consists of

mostly small to mid-size, highly fuel-efficient vehicles.

Secondly, over the last ten years, Honda has designed its factories to be flexible, in that they

can be easily retooled to produce any Honda model that may be in-demand at the moment.

At the 2008 Beijing Auto Show, Honda announced that they were looking to develop an

entry-level brand exclusively for the Chinese market similar to Toyota's Scion brand in the

USA

CUTTING-EDGE TECHNOLOGY

Their fundamental design philosophy seeks to maximise space and comfort for people,

while minimising the space required for mechanical components. With this aim in mind,

Honda's R&D activities include product-specific development and fundamental research.

Some of the technologies include,

 Combi Break System

 HondaMatic Transmission

 Fuel Injection System

 Idle Stop System

 Honda Fuel Cell Vehicle, Honda FCX

MANAGEMENT POLICY

Honda works to ensure that the products and services result in 3 joys:

Joy for people who buy them.

Joy for those who sell them and

Joy for people who produce them.

QUALITY OBJECTIVE

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TOTAL QUALITY MANAGEMENT OF HONDA

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CONCLUSION

Honda operates a TQM system. Its philosophy is to push quality back to the supplier,

expecting the products to arrive defect free to Honda’s defined level. But this won’t ever

stop the company from checking.

“With the tolerances and the complexity of some of the components, we’ve found that some

suppliers are not always able to guarantee meeting our specs – so we rely heavily on

inspection. For the more critical components, particularly safety critical components, we

carry out 100% inspection,” says Honda.

Operations Director, Professor Gary Savage, adds: “Last season Honda recorded zero

stoppages due to reliability of the chassis. The TQM system clearly contributed significantly

to this. Our aim now is to maintain this record as we move forward – and the system and

processes will develop in order to facilitate this aim.”

TOKYO—Honda Motor Co. said it would voluntarily recall 962,000 cars world-wide to

repair problems with power window.

The car maker said no serious injuries or fatal accidents have been reported as a result of

the problems. The company estimated it would spend ¥1.29 billion ($16.8 million) in Japan

for the recall.

Honda, Japan's third-biggest car maker by volume, recalled more than 2.3 million vehicles in

early August, citing problems with automatic transmissions. A Honda spokeswoman said

there were nine reported cases of vehicles catching on fire in Japan and China because of the

power-window problem. She also said two people reported light burns after touching

overheated switches.

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