This article discusses Honda Motor Co Ltd's business operations, reliability, KPIs, flow chart, affinity diagram, consumer requirements, and information collection techniques. It includes tables and diagrams to explain the concepts better.
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Running head: BUSINESS OPERATION AND RELIABILITY Business Operations And Reliability Name of the Student Name of the University Author note
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1BUSINESS OPERATION AND RELIABILITY Table of Content Honda process/system/service...................................................................................................2 Company’s description:.........................................................................................................2 Honda mission:.......................................................................................................................2 KPI of Honda.........................................................................................................................3 Flow chart:.............................................................................................................................4 Affinity diagram:....................................................................................................................6 Description of consumer requirement or 'Whats' and the required process or 'Hows'...............7 Table of What.........................................................................................................................7 Table of ‘Hows’.....................................................................................................................9 Information collection:.............................................................................................................12 Information Collection Tree Diagram......................................................................................13 Construction of a HOQ for this process/system/service of Honda..........................................13 Performance Importance Graph...............................................................................................14 Description of HOQ.................................................................................................................14 Recommendation......................................................................................................................17 Conclusion................................................................................................................................18
2BUSINESS OPERATION AND RELIABILITY Honda process/system/service Company’s description: Honda Motor Co Ltd is a Japanese Public multinational motorized vehicle, aircraft, power equipment manufacturing company. The company was founded in 1946 by Soichiro Honda and Takeo Fujisawa (global.honda 2016). Currently, Honda is the eighth largest automobilemanufacturerintheworld.ApartfrommotorizedvehicleHondaalso manufactures the garden equipment, marine engines, power generator and other power types of equipment. Honda is recently working on robotics and invented their first robot ASIMO in 2010. As per the financial forecast of 2016, the total revenue of Honda is 14.60 trillion yen. Honda has 208,500 permanent employees throughout the globe as per the data of 2016 (Editorial 2018).Honda processed their assembly operation in many countries including Japan, China, United States, Canada, England, Mexico, India and many other countries. Currently, Honda has three major production divisions namely Acura the luxury automobile production, Honda Automobiles, and Honda Motorcycles.The majors out of more than 30 subsidiaries are Honda Aircraft, Honda racing F1and Honda Aero Engines. Honda mission: The mission statement of Honda is Maintaining a global viewpoint and be dedicated to supplying products of the highest quality at a reasonable price to the worldwide customer. In management Honda Foundation always proceed with admission and youthfulness by showing respect to sound theories, fresh ideas. Harmonious flow of work with encouraging open communication is the key to the management (Mair 2012). The operational philosophies of Honda are taking initiative to make an innovative product with joy, showing respect and
3BUSINESS OPERATION AND RELIABILITY equity to individuals and maintaining a strong and sustainable relationship with business partners, stakeholders, customers and workers. KPI of Honda Honda has their specific and measurable Key Performance Indicator (KPI) that helps to maintain and improve the functionality and operational efficiency of each department (Sutton 2012). However, Honda Management has divided the basic KPI into five major subsections. FinancialPerspectivebased KPI regulateallthe financialefficiencyand accountable component of the company. The operational KPI of this section are: Sales volume for new product Revenue from the new products Manufacturing cost vs. Budget Marketing and advertising expense Customer perspectivebased KPI regulate the marketing, promotion, consumer behaviour and other related components. These KPI are: Number of customers Customer satisfaction Market share and brand value Process Perspectivebased KPIs are formed to assess the functionality of manufacturing and other related operations like inbound and outbound logistics. These KPI are: Developing new products Improving existing product Decrease material loss Ensure high standards of product quality
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4BUSINESS OPERATION AND RELIABILITY Time efficient manufacturing cycle InnovationperspectivebasedKPIsareformedtoassessthequalityofresearchand development department and their innovativeness. These KPIs are: Expenses incurred for research and development Time taken for research and development Resource allocated to research and development Flow chart: The following flowchart represents the interrelation and work based cardinality of various sections of manufacturing and processing functions. It will also help to understand the workflow diagram of the major operations of Honda Motor Ptd (Mitrevaet al.2013).
5BUSINESS OPERATION AND RELIABILITY Inbound logistics DisassembleAssembling Finalizing/Paintjob Distribution chain Quality CheckReport Testing R&D Testing Prototype Market analysis Positioning Outlet Y Y N N N YSupply chain selection Supplier
6BUSINESS OPERATION AND RELIABILITY Ensure RM Efficient Manufacturing Cycle Reducing logistics cost Simultaneous Production chain Six Sigma Prioritising Consumer trends Identify Consumer Trends Customer satisfaction Increase the Product variety Incorporating advanced technology Promotional Discounts and Offers Increase value for money High Quality Customer Service Employee Motivation Employees Satisfaction Extra curriculum activities Recognition and Appraisal Internal recruitment Healthy and safe workplace Encouraging Workplace culture Control unfair trading Distribution Expand Distribution Network Ensure Market Availability Affinity diagram:
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7BUSINESS OPERATION AND RELIABILITY Description of consumer requirement or 'Whats' and the required process or 'Hows' Table of What What (Customer requirement) FactorDescription Quality of textureThe reflection and distortion properties of exterior colour Huge verity of colureHigher number of colour variations in each model Fuel efficient engineCost efficient engine with higher mileage without compromising the performance. Larger interior spaceBigger interior space for both driver and back seat area with wider leg space High Quality safetyBettersafety andsecuritysystemincludingthenumber of airbags that can save the riders from collation causing injury High manoeuvrabilityBetter steering response that allows the driver to have more control over the car body Strong and durable chassisStrongchassisallowgratercollisionrecoverywithhigher durability in the exterior. Multi-Utility spaceThe utility of Interior and luggage space with a variety of options like space for a water bottle and foldable mobile or laptop holder. HighCustomisable internal features Customisabilityincludingflexibleseatpositionthatallows changing the alignment and angle of the seatback. DigitalisedDashboard withrealtimedata manipulation Digitalised dashboard with multi-display screen sharing with real time navigation and climate update. Customisable seat position and elevation Customizability of driver seat position involving the elevation, back angle, steer-wheel alignment and others
8BUSINESS OPERATION AND RELIABILITY Quality of ComfortHigher quality of comfort that allows the rider to have a more cosy journey. Less start-up JerksThe measurable jerking at the engine start-up time, especially for diesel engine. Less Jerks in accelerationLess jerking during short time acceleration in a busy traffic Quicktransaction response The latency time between gear transaction and engine Less carbon emissionMore carbon absorption quality in exhaust pipe Improved traction condoleImproved tire quality and ground grip in angular momentum Varity of modelsVarityofmodelswithdiversespecificationandstunning aerodynamic structure. BluetoothStreaming Audio Bluetooth controlled audio with live streaming features paired with Smartphone or laptop. Easytocleanseatand interior Slippery and anti-dust interior material that help to clean easily Activeblindspot detection Moreefficientexteriordesignwithnavigationcamerathat allows effective blind spot detection Hidden storage placeThe special storage system that can be used only for special purpose while keeping the place hidden Push button IgnitionButton ignition in spite of key based electric ignition system Higher market availabilityMarket availability of every acclaimed model with optional facilities Morereasonableprice rangeandcostefficient product Most cost efficient manufacturing that allows making a quality of product at less operational cost.
9BUSINESS OPERATION AND RELIABILITY Table of ‘Hows’ How (Required Process)Description Colure coating materialsCoating the exterior design with colourful and quality paint-job Light weight and durable chassis metalReducing the weight of the chassis without compromising the durability Leather covered seat and interiorCovering the interior and front and backseat by leather High grip tireIncrease the lateral friction of the tire Power controlled ignition and transition spark Controllable start-up electric power spark from battery Advanced Digitalised interiorDesigning advanced screen share dashboard Aerodynamic exterior designRemodel the exterior to reduce the air friction Comprisable and flexible interior materialIncrease the use of flexible alloy material in the interior More efficient navigation camera positioning Increasing the navigation camera count with efficient positioning EBFD break distributionAdvanced EBFD break positioning in front as well as rear wheel Automatic and semi Automatic TransitionReducing the manual control redundancy in gear transition Wi-Fi, Bluetooth, USB portAdvanced wireless transmission and USB facility Foldable and modular space managementFoldable laptop, tablet and Smartphone holder Smart climate sensing and coolingAn advance cooling system that can sense the exterior climate and can change the cooling system accordingly Parallel production chainsParallel production chain allows simultaneous production Smoke absorbing systemAbsorb the interior smoke to decrease the carbon
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10BUSINESS OPERATION AND RELIABILITY level Smart Carbon recyclingCarbon recycling process allows to filter most of the carbonated exhaust Battery powered motorAlternate fuelling system that also allow to use battery as power source Competitive Table of ‘Whats’ and ‘Hows’ X: HondaA: HyundaiB: ToyotaC: Tata Whats12345Hows12345 Quality of texture CxBA Colure coating materials XACB Huge verity of colureACxBLight weight and durable chassis metal BCxA Fuel efficient engineCxABLeather covered seat and interior CABx Larger interior spaceACxBHigh grip tireCBxA High Quality safetyxBACPower controlled ignition and transition spark ACxB High manoeuvrability CAxBAdvanced Digitalised interior BACx
11BUSINESS OPERATION AND RELIABILITY Stronganddurable chassis CxBAAerodynamic exterior design CBxA Multi-Utility spaceABCxComprisable and flexible interior material CxBA HighCustomisable internal features ACxBMore efficient navigation camera positioning ABxC Digitalised Dashboard with real timedata manipulation ACBx EBFD break distribution XBAC Customisableseat positionand elevation BxCA Automatic and semi Automatic TransitionAxBC Quality of ComfortBCAxWi-Fi, Bluetooth, USB port ABCx Less start-up JerksCAxBFoldable and modular space management ACxB LessJerksin acceleration CBxASmart climate sensing and cooling ACBx Quicktransaction response XACBParallel production chainsBxCA Less carbon emissionBCxASmoke absorbing systemBCAx Improvedtraction condole CABxSmart Carbon recyclingCAxB Varity of modelsCBxABattery powered motorBAxC BluetoothStreaming Audio ACxB EasytocleanseatBACx
12BUSINESS OPERATION AND RELIABILITY and interior Activeblindspot detection CBxA Hidden storage placeCxBA Push button IgnitionABxC Highermarket availability XBAC Morereasonable price range and cost efficient product AxBC Information collection: The information collection system of Honda depends on the real time market analysis process where the market research department collects adequate information about the market demand, consumer trends, competitive environment, external situation, partnership and many other fields (El-Refaie 2013). At the same time, the internal research and human resource department collect information about the organisational structure, operational performance, employee-employer relationship and other factors. To collect data about consumer behaviour and market trends social media based research is the most cost and time efficient technique that Honda Motors used within the global market. The following Tree diagram has been made to show the operational structure of the communication system of Honda.
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13BUSINESS OPERATION AND RELIABILITY Information Collection Tree Diagram Construction of a HOQ for this process/system/service of Honda Analysed and Represented in HOQ Template Big Data Internal Operational Information Equipment Production Cycle Resourse management Workforce Information Employee Motivation Workforce Productivity Leadership managemetn Training and Development External PEST Competitive Information Supplyer Information Distribution Chain Possition Consumer and brand value
14BUSINESS OPERATION AND RELIABILITY Performance Importance Graph Performance Against competitor LowHigh Value for moneyEngine performanceImportance to Customer HighVulnerableStrength Digitalisation and advanced interiorParallel supply chain LowWho Cares?Overkill Interior clean-abilityUse of leather Description of HOQ Consumer requirement: The consumer requirement part focuses on the requirement or the demand of the consumers from the company that should be prioritised during the production and other business operation. In this analysis mainly 25 consumer requirements are enlisted within the consumer requirement segment of House of Quality diagram. The reflection and distortion properties of exterior colour with variations in each model are highly demanded. Cost efficient or fuel efficient engine with higher mileage is another demanded properties (Frey 2012).Customer also requires bigger and customisable interior space for both driver and back seat area with wider leg space and hidden place. Higher safety and security are always the most highlighter priority for automobile consumers. Strong and durable chassis with stunning exterior attract the majority of customers. Advance digitalised dashboard with Bluetooth and USB facilities are also widespread demands. Cost efficiency is another essential demand that regulates the overall production operation of an automobile company (Goetsch and Davis, 2014).
15BUSINESS OPERATION AND RELIABILITY Operating requirement: Operating requirement are technical requirements of the organisational operation as well as in themanufacturingsectionthatcanallowthecompanytofulfilthedemandandthe requirement of the customer segment (Prasad, K. and Chakraborty 2013). Light weight and durable chassis metal with coloured coating material can make the exterior design of the vehicle more attractive. Leather covered seat and interior with the flexible material used in modular and folding components can fulfil the interior affection of the client. Alternate fuelling system and smart carbon recycling can reduce the carbon emission and increase the fuel efficiency. High grip tire with smart transition system can be also helpful.Advanced Digitalised interior with Wi-Fi, Bluetooth, USB port and live streaming sound system can improvethetechnicaladvancementofthemulti-operationalutilities.EBFDbreak distribution, Smoke absorbing system, smart climate sensor cooling system and battery power operation can increase the comfort level of the cabin. Relationship matrix: In relationship matrix, it has been found that each and individual requirement has its cardinalitywiththeoperationalfeaturesortechnicalprocesses.Thisinterconnected dependency and multithreadedcardinalityhave been measured by unique scalingand prioritising system (Goetsch and Davis 2014). Through this system, the most dependent consumer requirement and the associated operational requirement or process can be identified and sorted as per their weight and value distribution. It will also help to set operational objectivesforbothinternalandexternalfunctionalityofthecompanyinvolving manufacturing cycle, resource management, research and development as well as logistics designing. Relationship matrix is the chief executable operation of the House of Quality techniquewithintheQualityFunctionDeploymentoperation.Mostofthesecondary
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16BUSINESS OPERATION AND RELIABILITY operations of the QFD are dependent on this relationship matrix and prioritisation operation (Evans and Lindsay 2013). Competitive evaluation: In this section, the consumer requirements and market demands have been compared to Honda and other three rivals companies within the same market segment namely Hunai, Tata Motors and Toyota. The competitive evaluation will help to identify the key strong points of eachofthecompanyalignedwiththeirconsumersatisfactionandpotentialdemand (Cavalliniet al.2013). In this analysis, the main regulatory options are the 25 major customer requirements selected for the organisation named Honda Motor Ptl. Along with cardinality sorting and prioritising this evaluation process will be also helpful in further operational analysis and technical evaluation process of the Honda manufacturing operation. Target value and Technical evaluation: In the target and technical evaluation process, the identified cardinality between customer requirement and the required process has been sorted as per their weight, value and priority distribution (Perçin and Min 2013). Through this section, the technical development team of Honda can identify the most suitable tools for their future development that can increase the customer satisfaction, market demand and moreover organisational profitability. Through the technical evaluation, the manufacturing cycle can be customised as per the requirement of the operational changes. Technical Co-relationship: It is also called as the roof matrix of the HOQ diagram. All the technical requirement and the process are somewhere interrelated to each other. Through this interrelation, the process requirements can solve a specific purpose in a simultaneous group operative function. Therefore the process requirement should be identified as per their internal co-relationship
17BUSINESS OPERATION AND RELIABILITY with each other. In the HOQ diagram of Honda the technical co-relationship has been made and prioritised by four basic signs of cardinality (Pakdil, Işın and Genç 2012).It has been found that Advanced Digitalised interior with Wi-Fi, Bluetooth, USB port and live streaming sound system can improve the technical advancement of the multi operational utilities together. EBFD break distribution, Smoke absorbing system, smart climate sensor cooling system and battery power operation can increase the comfort level of the cabin (Conti, 2012). Light weight and durable chassis metal with coloured coating material can make the exterior design of the vehicle more attractive with co-relationship and dependency. Leather covered seat and interior with the flexible material used in modular and folding components can fulfil the interior affection of the client in a co-relative operation. Recommendation RecommendationJustificationDepartme nt Rescindable person Tim e Cost (AU D) Bene fit (AU D) Implementing Portotopthree highestscoring processes Hondacan prioritisetheir consumer requirementpart focusingonthe requirementor thetechnical processofthe company Manageme ntand decision making Operational manager, Management board members 1 mont h 13002300 Lookat competitive advantagefor requirement process consumer requirementsand marketdemands can be compared among Honda and other three rivals companies within thesamemarket segment (Vinayak and Kodali 2013). MarketingMarketing manager 5 mont hs 25004300 AppropriateAdd,MakingessentialR&D,R&D1035004800
18BUSINESS OPERATION AND RELIABILITY removeand restructure process changeswithin theproduction cycle to meet the consumer requirementwith thehelpof available technical process Manufactur ing Manager, Operational Manager mont h Identifythe strengthand weaknesswith operationalco- relation Recognisethe requiredchanges byfocusingon the strength while avoidingthe weaknesses. Manageme nt, Accounts Accounts Manager, Operational Manager 5 mont hs 12001800 Identifythesales andpromotional opportunitywith alternate and direct promotion Increasethe consumer attraction, profitabilityand brand recognition withinthetarget market (Shanmugaraja, Natarajand Gunasekaran 2012). Marketing, Sales Marketing Manager, Sales Manager 8 Mon th 52007300 Conclusion From the above analysis, it can be said that the mission statement of Honda is maintaining a global viewpoint and be dedicated supplying products of the highest quality at a reasonable price to the worldwide customer. Apart from that, Honda has their specific and measurable Key Performance Indicator (KPI) that helps to maintain and improve the functionality and operational efficiency of each department. Similarly, the flow chart diagram will help to understand the workflow diagram of the major operations of Honda Motor Ptd. The information collection system of Honda depends on the real time market analysis process where the market research department collects adequate information about the market demand, consumer trends, competitive environment, external situation, partnership and many
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19BUSINESS OPERATION AND RELIABILITY other fields. In this analysis mainly 25 consumer requirements are enlisted within the consumer requirement segment of House of Quality diagram for the company named Honda Motors Ptl. On the other hand, Operating requirement are technical requirements of the organisational operation as well as in the manufacturing section that can allow the company to fulfil the demand and the requirement of the customer segment. Through this system, the most dependent consumer requirement and the associated operational requirement or process canbeidentifiedandsortedaspertheirweightandvaluedistribution.Finally,the recommendation part will help to select the most suitable production and development strategy of Honda Motors that can increase their market share, consumer attraction and profitability.
20BUSINESS OPERATION AND RELIABILITY Reference: Cavallini, C., Giorgetti, A., Citti, P. and Nicolaie, F., 2013. Integral aided method for material selectionbasedonqualityfunctiondeploymentandcomprehensiveVIKOR algorithm.Materials & Design,47, pp.27-34. Conti, T., 2012.Building total quality: a guide for management. Springer Science & Business Media. Editorial, R. (2018).Company Profile for Honda Motors. [online] reuters.org. Available at: https://in.reuters.org/finance/stocks/Honda/HMC.N [Accessed 20 May 2018]. El-Refaie,A.M.,2013.Motors/generatorsfortraction/propulsionapplications:A review.IEEE Vehicular Technology Magazine,8(1), pp.90-99. Evans, J.R. and Lindsay, W.M., 2013.Managing for quality and performance excellence. Cengage Learning. Frey, D., 2012. Quality Function Deployment. global.honda(2016).HondaGlobal|About.[online]Global.honda.Availableat: https://global.honda/about/ [Accessed 20 May 2018]. Goetsch, D.L. and Davis, S.B., 2014.Quality management for organizational excellence. Upper Saddle River, NJ: pearson. Goetsch, D.L. and Davis, S.B., 2014.Quality management for organizational excellence. Upper Saddle River, NJ: pearson. Mair,A.,2012.LearningfromJapan?:interpretationsofHondaMotorsbystrategic management theorists(Vol. 29). Nissan Institute of Japanese Studies.
21BUSINESS OPERATION AND RELIABILITY Mitreva, E., Taskov, N., Kitanov, V., Filiposki, O. and Dzaleva, T., 2013. The Need for Information System Design in Building a House of Quality.International Journal of Pure and Applied Sciences and Technology,16(1), p.26. Pakdil, F., Işın, F.B. and Genç, H., 2012. A quality function deployment application using qualitative and quantitative analysis in after sales services.Total Quality Management & Business Excellence,23(11-12), pp.1397-1411. Perçin, S. and Min, H., 2013. A hybrid quality function deployment and fuzzy decision- makingmethodologyfortheoptimalselectionofthird-partylogisticsservice providers.International Journal of Logistics Research and Applications,16(5), pp.380-397. Prasad, K. and Chakraborty, S., 2013. A quality function deployment-based model for materials selection.Materials & Design,49, pp.525-535. Shanmugaraja, M., Nataraj, M. and Gunasekaran, N., 2012. Six Sigma project selection via qualityfunctiondeployment.InternationalJournalofProductivityandQuality Management,10(1), pp.85-111. Sutton, J., 2012. The auto-component supply chain in China and India: A benchmarking study. Vinayak,K.andKodali,R.,2013.Benchmarkingthequalityfunctiondeployment models.Benchmarking: An International Journal,20(6), pp.825-854.