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Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management Philanthropy
Performance Report Supply Chain
Quality Quality inspection for finished vehicles at the Kumamoto Factory. The factory supplies a range of quality Honda motorcycles not only to Japan but to the world as well.
55
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management Philanthropy
Performance Report Supply Chain
Our fundamental approach Aiming for 120% product quality
Implementing the Global Honda Quality Standard (G-HQS)
Honda’s Quality Cycle achieves high quality “We have to aim 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 we 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 high product quality standards. That is who we are. 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. In order to realize the basic principles of “respect for the individual” and the “Three Joys” (the joy of buying, the joy of selling, the joy of creating), Honda works in partnership with dealers to increase customer satisfaction to allow them to continue handling products with confidence at every stage, from purchase to after sales service, maintaining provision of a high level of satisfaction to customers at all times.
Raising the quality of Honda brand products produced and sold worldwide As Honda’s production and parts and materials sourcing expand globally, shared global quality assurance rules are essential to ensure that all Honda facilities continue to generate 120% product quality. To address this need, Honda established the Global Honda Quality Standard (G-HQS) in April 2005. Based on ISO 9001*1 and ISO/TS 16949*2 criteria under which Honda facilities in Japan and around the world have been or are to be certified, G-HQS is the accumulation of knowledge Honda has gathered in producing quality products and preventing previous issues from recurring. It will continue to conform to ISO certification standards. As of March 2015, all 51 Honda production facilities around the world have attained ISO certification. G-HQS is designed to enhance the quality of Hondabrand products manufactured and sold worldwide. By ensuring that all facilities comply with these standards, horizontal expansion of G-HQS between all factories can be devised, 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/TS 16949: An international quality management system standard for the automotive industry
56
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management
Performance Report
Philanthropy
Supply Chain
Quality initiatives Honda’s Quality Cycle
and manufacturing. For example, drawings for objects to be machine processed include finished dimensions. Even when the same worker uses the same materials, equipment, and procedures to produce an item to the dimensions specified on the relevant drawing as part of a given production process, there are inevitably small variations in the item’s finished dimensions. To address this fact, R&D departments go beyond considerations of function and performance to design drawings to yield maximum ease of manufacture and limit process variability. For their part, production departments implement manufacturing control to keep variability within applicable standards based on drawings and to develop production processes so that all workers can continue to achieve a consistent level of quality.
Development of Honda’s quality initiatives based on design and development expertise By applying and reflecting design and development expertise at the design and development, production preparation, and production (mass production) stages, we are able to deliver enhanced quality through the creation of drawings designed to facilitate manufacturing, and develop manufacturing control techniques that limit process variability.
Initiatives in design and development and production Aggressively ensuring quality in both design and manufacturing To ensure high quality, Honda conducts aggressive quality assurance activities from the dual perspectives of design
Honda’s Quality Cycle Design and Development Implement quality assurance from the drawing stage by utilizing design and manufacturing expertise to create drawings designed to facilitate manufacturing.
1
Collection of QualityInformation, Consolidated 5 Analysis and Quality Enhancement Measures Collect and analyze quality information from customers and markets worldwide and strive to improve and elevate quality in a prompt manner (market quality improvement system).
2 Global Honda Quality Standard (G-HQS)
3 Sales and [After-sales] 4 Service Market quality issues after sales are dealt with by dealerships, which collect quality information from customers in a timely manner.
Production Preparation
Prepare quality assurance in production processes by building manufacturing controls that limit process variability.
Production
In addition to using drawings designed to facilitate manufacturing and implementing manufacturing controls that limit process variability, conduct rigorous inspections of parts and finished vehicles, and take steps to assure no damage occurs during transport.
57
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management
Performance Report
Philanthropy
Supply Chain
Processes that create new levels of enhanced quality (automobiles) Development stage Quality assurance concept
Production preparation stage
Mass-production stage
1 Assuring quality
through drawings
R&D departments Database
Product function and performance concepts
Communication
Database storing quality-related data that Honda has accumulated over many years, for example including design and manufacturing expertise
Drawing design that incorporates ease-of-manufacture considerations
2 Assuring quality through
production processes
Production departments
Process assurance concept
Establishing manufacturing control items and standards
Products
Developing processes to limit variability 3 Assuring part quality through supplier audits 4 Assuring long-term reliability
through aggressive durability testing
• 1. Assuring quality through drawings
5 Inspecting
electronic control systems
• 3. Assuring part quality through supplier audits
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. Product function, performance, and quality assurance initiatives are committed to writing and shared to coordinate efforts with production departments’ process assurance activities and to coordinate quality assurance initiatives.
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.
• 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 manufacturing variability as they work to prevent quality issues. Furthermore, Honda develops processes that limit variability by soliciting suggestions for enhancement from the sites where work is actually performed and determining manufacturing control methods for each process.
58
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management Philanthropy
Performance Report Supply Chain
Quality initiatives
• 4. Assuring long-term reliability through
traditionally depended on the human senses of smell, sight, and hearing can now be performed quantitatively by means of communications with electronic control components, dramatically increasing the precision and efficiency with which inspections can be conducted. Honda is continuing to quantify shipping quality assurance for electronic control systems by working to implement further enhancements in the precision and efficiency of sensory inspections.
aggressive durability testing
Honda subjects new and redesigned models to a rigorous regimen of long-distance durability testing before beginning mass production in order to that there are no quality issues. We also disassemble vehicles used in the test drives into every single part and that there are no quality issues through a process consisting of several thousand checks. By accumulating data on the issues discovered through these test drives and detailed inspections as well as associated countermeasures, we are able to ensure a high level of quality and function reliability.
Overview of the LET System
Line End Tester (LET)
Verification of parts following durability testing
• 5. Using 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 enger 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 inhouse, at production plants in Japan and overseas. Although the LET was initially deployed to perform diagnostics of emissions purification systems and parts in order to comply with U.S. emissions regulations, Honda extended the capabilities of the device to accommodate the recent evolution of electronic control systems, allowing its use in shipping quality inspections of all electronic control systems, from switches and instruments to air conditioner, audio, engine, and transmission operation. Thanks to these innovations, inspections that have
59
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management Philanthropy
• Customer Relations Center
Initiatives in sales and service
Performance Report Supply Chain
The Customer Relations Center in Japan has a very straightforward slogan: “For the customer.” Its mission is to handle inquiries from Honda customers politely, clearly, and quickly, delivering the same high quality in Honda communications as is found in Honda products. The Center also responds to survey requests from the Japanese government and inquiries from consumer advocacy organizations. The Center receives in the form of customer questions, suggestions, requests and complaints 365 days a year, and during FY2015 it processed 274,791 inquiries. To ensure that this valuable information is put to good use in Honda’s operations, the facility shares it in a timely manner with the company’s R&D, manufacturing, service, and sales departments in compliance with laws and regulations as well as Honda’s own policies concerning the handling of personal information.
Establishing Services Division with focus on enhancing customer satisfaction levels Honda has established the Services Division in order to realize optimal service operations in markets worldwide. The division aims to expand customer joy worldwide through service and the priority goal of its activities is to be the truly exceptional No. 1 in customer satisfaction. “Truly exceptional No. 1 in customer satisfaction” refers to the creation of customer joy and excitement by providing a level of value that not only satisfies the expectations that customers have when they receive services based on their past experiences and memories, but also exceeds them. The experience of excitement through these services forges an emotional connection between customers and Honda, ensuring that the company will be recognized as a mobility manufacturer that customers retain as their first choice based on their high expectations. To attain this goal, the Services Division has adopted three activity policies, which are offering service in a sincere, speedy, assured, affordable and convenient manner; developing an advanced service environment; and maximizing business efficiency and expanding business operations. They are also focused on creating an environment allowing regional dealers—Honda’s point of with customers—to address customer satisfaction enhancement more effectively and efficiently.
Sharing customer among departments
60
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Sustainability Management
Human Resources
Performance Report
Philanthropy
Supply Chain
Quality initiatives
• Quality Innovation Center Tochigi
Improving quality based on customer
The Center brings together into a single facility all the organizational components necessary to pull together products quality data, analyze issues, consider countermeasures, and provide quick, precise to development and production departments. In particular, the colocation of quality and service departments facilitates effective analysis and countermeasures thanks to the ability to share information quickly.
Building a rapid market quality enhancement system around a Quality Center that centralizes customer 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 qualityrelated data from dealers in Japan and overseas through service departments. Measures and policies for preventing quality issues are then developed based on the issues identified from this data and provided as to R&D and production departments responsible for operations including product design, manufacture, and part supplier relations. When a quality issue does occur, we move quickly to resolve it, for example by working closely with R&D and production departments to investigate and address the cause, dealing with affected customers, and taking action to prevent a recurrence.
Quality Innovation Center Tochigi
Operations at Quality Innovation Center Tochigi (automobiles) Quality enhancement operations at Quality Innovation Center Tochigi consist of pulling together market quality data and sharing information about collected parts and market quality issues. Personnel analyze such parts,
Market quality enhancement system (automobiles)
Overseas
Customers
Inquiries
Japan
Customers Replies
Inquiries
Replies
Customers
Replies
Inquiries
Overseas dealers Reports
Dealers in Japan
Honda
Replies
Reports
Reports
Service departments
Service departments
Customer Relations Center
Quality Center Quality assurance departments (assessment, analysis, countermeasures, reports)
Production departments
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Honda SUSTAINABILITY REPORT 2015
Development departments
Parts manufacturers and other suppliers
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Sustainability Management
Human Resources
investigate causes, and develop countermeasures and improvements in a timely manner. Specialized teams with extensive product knowledge are able to obtain detailed data using a range of analytical equipment. The operational process is configured to facilitate objective, appropriate decision-making based on gathered data.
Performance Report
Philanthropy
Supply Chain
Analysis in partnership with overseas entities Overseas production plants play a central role in conducting the same type of quality enhancement activities as Quality Innovation Center Tochigi. When plants encounter a particularly difficult market quality issue and request assistance, the Center investigates and analyzes the issue and then reports the results back to the overseas facility.
Quality improvement operation process Japanese and overseas dealers
Departments in charge of implementing countermeasures (Quality Innovation Center Tochigi) Pulling together market quality data
Parts collection
Sharing market quality data
Sharing market quality information Service, R&D and analysis departments gather and share information from the market.
Parts collection Parts collected from the market are classified by category and managed to facilitate quick analysis.
Investigating causes, analyzing issues, implementing countermeasures, and reporting
Generating quality enhancement
Applying preventive measures across the organization
R&D departments Production departments
Analyzing materials Issues caused by materials are analyzed using the latest scientific equipment, including composition analysis and X-ray diffraction analysis systems.
Measuring part precision Parts’ dimensional precision is verified using three-dimensional measurement and the latest roundness measurement equipment.
Testing engine functionality and performance The functionality and performance of finished engines is verified on a bench.
Analyzing the brake noise Brake noise is analyzed under conditions ranging from -30°C to room temperature.
Exhaust gas and mode driving verification The compliance of exhaust gas components with emissions regulations and proper system operation during mode driving are verified.
Vibration test on a bench Issues are analyzed while reproducing actual vehicle vibrations on a bench.
Working with automotive production plants
U.K.
Europe
North America
China Turkey
China (Wuhan) Pakistan India
Asia
China (Guangzhou) Taiwan Thailand Philippines Malaysia
Quality Innovation Center Tochigi
Canada U.S.A. (Ohio) U.S.A. (Indiana) U.S.A. (Alabama)
South America
Indonesia
Brazil
Argentina
62
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Sustainability Management
Human Resources
Performance Report
Philanthropy
Supply Chain
Quality initiatives Quality management education
Honda Basic Course Flow Trainees
Implementing quality management education Honda offers quality management training according to inhouse qualifications and the level of quality control responsibilities with the aim of improving associates’ quality assurance skills. In Japan, Honda offers a training curriculum with four courses divided into basic training and specialized training. As part of this, the Honda QC Basic Course (HBC) is open not only to Honda associates but also to suppliers, and focuses on training experts in all Honda quality management. Outside Japan, the QC Junior (QC J) Course and the QC Foreman (QC F) Course are offered as basic training.
Themes that need to be addressed in own departments
HBC 1. Coursework
2. Session to review how to address issues 3. SQC implementation in trainees’ own departments aimed at resolving themes/issues
Repeat the cycle of steps (2) and (3) above
Cultivates quality control experts with practical skills by teaching trainees to resolve issues in their own departments.
Overseas quality control training
Training curricula content Category
Course name
Course content
QC Junior (QC J) Course
Targets associates six months to one year after ing Honda to learn the basics of quality control techniques.
Total of 1 day
QC Foreman (QC F) Course
Targets associates engaged in production and quality duties to learn the quality control techniques and approaches required for quality assurance activities.
Total of 2 days
Statistical Quality Control (SQC) Course
Targets associates whose principal responsibility is quality control and quality improvement activities to learn professional quality control techniques and approaches.
Total of 2 days
Honda QC Basic Course (HBC)
Targets associates who are responsible for the core of quality control activities to learn skills that allow them to resolve difficult problems/issues with the aim of becoming quality control experts.
Total of 22 days
Basic training
Specialized training
63
Honda SUSTAINABILITY REPORT 2015
Period
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Handling quality issues
Performance Report
Philanthropy
Supply Chain
Results of the 2014 Initial Quality Study (IQS) for automobiles: J.D. Power Asia Pacific
Global Quality Committee makes decisions on market actions including recalls When we determine that product issue requires action, we quickly report the issue to governmental authorities in accordance with individual countries’ regulations and 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 Global Quality Committee is quickly convened in accordance with Honda global rules, and decisions concerning market actions are made by its chairperson in consultation with overseas including experts from departments involved with quality issues who are capable of making objective decisions.
< By brand and production facility >
Country US Japan
Country
US
35
Motorcycles
10
Power Products
3
Total
48
Ranking
Honda
No.8
Acura
No.25
Honda
No.3
Segment
Model
Ranking
Compact Car
Civic
No.3
Midsize Pickup
Ridgeline
No.1
Acura TL
No.2
Acura ILX
No.3
Compact Car
Japan
China
Number of recalls
Automobiles
Brand and production facility
< By model segment >
Number of recalls Segment
Sustainability Management
India
Mini-vehicle
N-BOX
No.2
Midsize Car
Vezel
No.3
Compact Upper
Fit
No.2
Mid-Size Upper
Accord
No.2
Midsize Car SUV
CR-V
No.3
Large SUV
Crosstour
No.3
Large MPV
Odyssey
No.1
Upper Compact Car
Brio
No.1
Midsize Car
City
No.3
Compact Car
* Number of recalls worldwide in FY2015
Entry Midsize Car
Independent evaluations of quality
Thailand
Gained high rating in an Initial Quality Study conducted by an independent evaluation organization Honda’s design and development, production, and sales and service departments are working together to win the top ranking in the Initial Quality Study (IQS) for automobiles conducted by J.D. Power, an independent evaluation organization, as an indicator of customer satisfaction, which constitutes the result of the quality cycle.
Brio Amaze
No.1
Jazz
No.2
City
No.3
Midsize Car
Civic
No.1
Midsize Car
Accord
No.1
Midsize Car SUV
CR-V
No.1
* Includes top three vehicles in major markets from January to December 2014. J.D. Power and Associates 2014 U.S. Initial Quality Study SM (based on responses from more than 86,000 owners who purchased or leased a new vehicle as surveyed from February to May 2014) J.D. Power and Associates 2014 Japan Initial Quality Study SM (based on responses from more than 15,000 owners who purchased a new vehicle as surveyed from May to June 2014) J.D. Power and Associates 2014 China Initial Quality Study SM (based on responses from more than 21,000 owners who purchased a new vehicle as surveyed from April to August 2014) J.D. Power and Associates 2014 India Initial Quality Study SM (based on responses from more than 8,000 owners who purchased a new vehicle as surveyed from May to September 2014) J.D. Power and Associates 2014 Thailand Initial Quality Study SM (based on responses from more than 5,000 owners who purchased a new vehicle as surveyed from April to September 2014)
64
Honda SUSTAINABILITY REPORT 2015
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management Philanthropy
Performance Report Supply Chain
Quality Quality inspection for finished vehicles at the Kumamoto Factory. The factory supplies a range of quality Honda motorcycles not only to Japan but to the world as well.
55
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management Philanthropy
Performance Report Supply Chain
Our fundamental approach Aiming for 120% product quality
Implementing the Global Honda Quality Standard (G-HQS)
Honda’s Quality Cycle achieves high quality “We have to aim 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 we 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 high product quality standards. That is who we are. 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. In order to realize the basic principles of “respect for the individual” and the “Three Joys” (the joy of buying, the joy of selling, the joy of creating), Honda works in partnership with dealers to increase customer satisfaction to allow them to continue handling products with confidence at every stage, from purchase to after sales service, maintaining provision of a high level of satisfaction to customers at all times.
Raising the quality of Honda brand products produced and sold worldwide As Honda’s production and parts and materials sourcing expand globally, shared global quality assurance rules are essential to ensure that all Honda facilities continue to generate 120% product quality. To address this need, Honda established the Global Honda Quality Standard (G-HQS) in April 2005. Based on ISO 9001*1 and ISO/TS 16949*2 criteria under which Honda facilities in Japan and around the world have been or are to be certified, G-HQS is the accumulation of knowledge Honda has gathered in producing quality products and preventing previous issues from recurring. It will continue to conform to ISO certification standards. As of March 2015, all 51 Honda production facilities around the world have attained ISO certification. G-HQS is designed to enhance the quality of Hondabrand products manufactured and sold worldwide. By ensuring that all facilities comply with these standards, horizontal expansion of G-HQS between all factories can be devised, 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/TS 16949: An international quality management system standard for the automotive industry
56
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management
Performance Report
Philanthropy
Supply Chain
Quality initiatives Honda’s Quality Cycle
and manufacturing. For example, drawings for objects to be machine processed include finished dimensions. Even when the same worker uses the same materials, equipment, and procedures to produce an item to the dimensions specified on the relevant drawing as part of a given production process, there are inevitably small variations in the item’s finished dimensions. To address this fact, R&D departments go beyond considerations of function and performance to design drawings to yield maximum ease of manufacture and limit process variability. For their part, production departments implement manufacturing control to keep variability within applicable standards based on drawings and to develop production processes so that all workers can continue to achieve a consistent level of quality.
Development of Honda’s quality initiatives based on design and development expertise By applying and reflecting design and development expertise at the design and development, production preparation, and production (mass production) stages, we are able to deliver enhanced quality through the creation of drawings designed to facilitate manufacturing, and develop manufacturing control techniques that limit process variability.
Initiatives in design and development and production Aggressively ensuring quality in both design and manufacturing To ensure high quality, Honda conducts aggressive quality assurance activities from the dual perspectives of design
Honda’s Quality Cycle Design and Development Implement quality assurance from the drawing stage by utilizing design and manufacturing expertise to create drawings designed to facilitate manufacturing.
1
Collection of QualityInformation, Consolidated 5 Analysis and Quality Enhancement Measures Collect and analyze quality information from customers and markets worldwide and strive to improve and elevate quality in a prompt manner (market quality improvement system).
2 Global Honda Quality Standard (G-HQS)
3 Sales and [After-sales] 4 Service Market quality issues after sales are dealt with by dealerships, which collect quality information from customers in a timely manner.
Production Preparation
Prepare quality assurance in production processes by building manufacturing controls that limit process variability.
Production
In addition to using drawings designed to facilitate manufacturing and implementing manufacturing controls that limit process variability, conduct rigorous inspections of parts and finished vehicles, and take steps to assure no damage occurs during transport.
57
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management
Performance Report
Philanthropy
Supply Chain
Processes that create new levels of enhanced quality (automobiles) Development stage Quality assurance concept
Production preparation stage
Mass-production stage
1 Assuring quality
through drawings
R&D departments Database
Product function and performance concepts
Communication
Database storing quality-related data that Honda has accumulated over many years, for example including design and manufacturing expertise
Drawing design that incorporates ease-of-manufacture considerations
2 Assuring quality through
production processes
Production departments
Process assurance concept
Establishing manufacturing control items and standards
Products
Developing processes to limit variability 3 Assuring part quality through supplier audits 4 Assuring long-term reliability
through aggressive durability testing
• 1. Assuring quality through drawings
5 Inspecting
electronic control systems
• 3. Assuring part quality through supplier audits
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. Product function, performance, and quality assurance initiatives are committed to writing and shared to coordinate efforts with production departments’ process assurance activities and to coordinate quality assurance initiatives.
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.
• 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 manufacturing variability as they work to prevent quality issues. Furthermore, Honda develops processes that limit variability by soliciting suggestions for enhancement from the sites where work is actually performed and determining manufacturing control methods for each process.
58
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management Philanthropy
Performance Report Supply Chain
Quality initiatives
• 4. Assuring long-term reliability through
traditionally depended on the human senses of smell, sight, and hearing can now be performed quantitatively by means of communications with electronic control components, dramatically increasing the precision and efficiency with which inspections can be conducted. Honda is continuing to quantify shipping quality assurance for electronic control systems by working to implement further enhancements in the precision and efficiency of sensory inspections.
aggressive durability testing
Honda subjects new and redesigned models to a rigorous regimen of long-distance durability testing before beginning mass production in order to that there are no quality issues. We also disassemble vehicles used in the test drives into every single part and that there are no quality issues through a process consisting of several thousand checks. By accumulating data on the issues discovered through these test drives and detailed inspections as well as associated countermeasures, we are able to ensure a high level of quality and function reliability.
Overview of the LET System
Line End Tester (LET)
Verification of parts following durability testing
• 5. Using 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 enger 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 inhouse, at production plants in Japan and overseas. Although the LET was initially deployed to perform diagnostics of emissions purification systems and parts in order to comply with U.S. emissions regulations, Honda extended the capabilities of the device to accommodate the recent evolution of electronic control systems, allowing its use in shipping quality inspections of all electronic control systems, from switches and instruments to air conditioner, audio, engine, and transmission operation. Thanks to these innovations, inspections that have
59
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Sustainability Management Philanthropy
• Customer Relations Center
Initiatives in sales and service
Performance Report Supply Chain
The Customer Relations Center in Japan has a very straightforward slogan: “For the customer.” Its mission is to handle inquiries from Honda customers politely, clearly, and quickly, delivering the same high quality in Honda communications as is found in Honda products. The Center also responds to survey requests from the Japanese government and inquiries from consumer advocacy organizations. The Center receives in the form of customer questions, suggestions, requests and complaints 365 days a year, and during FY2015 it processed 274,791 inquiries. To ensure that this valuable information is put to good use in Honda’s operations, the facility shares it in a timely manner with the company’s R&D, manufacturing, service, and sales departments in compliance with laws and regulations as well as Honda’s own policies concerning the handling of personal information.
Establishing Services Division with focus on enhancing customer satisfaction levels Honda has established the Services Division in order to realize optimal service operations in markets worldwide. The division aims to expand customer joy worldwide through service and the priority goal of its activities is to be the truly exceptional No. 1 in customer satisfaction. “Truly exceptional No. 1 in customer satisfaction” refers to the creation of customer joy and excitement by providing a level of value that not only satisfies the expectations that customers have when they receive services based on their past experiences and memories, but also exceeds them. The experience of excitement through these services forges an emotional connection between customers and Honda, ensuring that the company will be recognized as a mobility manufacturer that customers retain as their first choice based on their high expectations. To attain this goal, the Services Division has adopted three activity policies, which are offering service in a sincere, speedy, assured, affordable and convenient manner; developing an advanced service environment; and maximizing business efficiency and expanding business operations. They are also focused on creating an environment allowing regional dealers—Honda’s point of with customers—to address customer satisfaction enhancement more effectively and efficiently.
Sharing customer among departments
60
Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Sustainability Management
Human Resources
Performance Report
Philanthropy
Supply Chain
Quality initiatives
• Quality Innovation Center Tochigi
Improving quality based on customer
The Center brings together into a single facility all the organizational components necessary to pull together products quality data, analyze issues, consider countermeasures, and provide quick, precise to development and production departments. In particular, the colocation of quality and service departments facilitates effective analysis and countermeasures thanks to the ability to share information quickly.
Building a rapid market quality enhancement system around a Quality Center that centralizes customer 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 qualityrelated data from dealers in Japan and overseas through service departments. Measures and policies for preventing quality issues are then developed based on the issues identified from this data and provided as to R&D and production departments responsible for operations including product design, manufacture, and part supplier relations. When a quality issue does occur, we move quickly to resolve it, for example by working closely with R&D and production departments to investigate and address the cause, dealing with affected customers, and taking action to prevent a recurrence.
Quality Innovation Center Tochigi
Operations at Quality Innovation Center Tochigi (automobiles) Quality enhancement operations at Quality Innovation Center Tochigi consist of pulling together market quality data and sharing information about collected parts and market quality issues. Personnel analyze such parts,
Market quality enhancement system (automobiles)
Overseas
Customers
Inquiries
Japan
Customers Replies
Inquiries
Replies
Customers
Replies
Inquiries
Overseas dealers Reports
Dealers in Japan
Honda
Replies
Reports
Reports
Service departments
Service departments
Customer Relations Center
Quality Center Quality assurance departments (assessment, analysis, countermeasures, reports)
Production departments
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Honda SUSTAINABILITY REPORT 2015
Development departments
Parts manufacturers and other suppliers
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Sustainability Management
Human Resources
investigate causes, and develop countermeasures and improvements in a timely manner. Specialized teams with extensive product knowledge are able to obtain detailed data using a range of analytical equipment. The operational process is configured to facilitate objective, appropriate decision-making based on gathered data.
Performance Report
Philanthropy
Supply Chain
Analysis in partnership with overseas entities Overseas production plants play a central role in conducting the same type of quality enhancement activities as Quality Innovation Center Tochigi. When plants encounter a particularly difficult market quality issue and request assistance, the Center investigates and analyzes the issue and then reports the results back to the overseas facility.
Quality improvement operation process Japanese and overseas dealers
Departments in charge of implementing countermeasures (Quality Innovation Center Tochigi) Pulling together market quality data
Parts collection
Sharing market quality data
Sharing market quality information Service, R&D and analysis departments gather and share information from the market.
Parts collection Parts collected from the market are classified by category and managed to facilitate quick analysis.
Investigating causes, analyzing issues, implementing countermeasures, and reporting
Generating quality enhancement
Applying preventive measures across the organization
R&D departments Production departments
Analyzing materials Issues caused by materials are analyzed using the latest scientific equipment, including composition analysis and X-ray diffraction analysis systems.
Measuring part precision Parts’ dimensional precision is verified using three-dimensional measurement and the latest roundness measurement equipment.
Testing engine functionality and performance The functionality and performance of finished engines is verified on a bench.
Analyzing the brake noise Brake noise is analyzed under conditions ranging from -30°C to room temperature.
Exhaust gas and mode driving verification The compliance of exhaust gas components with emissions regulations and proper system operation during mode driving are verified.
Vibration test on a bench Issues are analyzed while reproducing actual vehicle vibrations on a bench.
Working with automotive production plants
U.K.
Europe
North America
China Turkey
China (Wuhan) Pakistan India
Asia
China (Guangzhou) Taiwan Thailand Philippines Malaysia
Quality Innovation Center Tochigi
Canada U.S.A. (Ohio) U.S.A. (Indiana) U.S.A. (Alabama)
South America
Indonesia
Brazil
Argentina
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Honda SUSTAINABILITY REPORT 2015
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Sustainability Management
Human Resources
Performance Report
Philanthropy
Supply Chain
Quality initiatives Quality management education
Honda Basic Course Flow Trainees
Implementing quality management education Honda offers quality management training according to inhouse qualifications and the level of quality control responsibilities with the aim of improving associates’ quality assurance skills. In Japan, Honda offers a training curriculum with four courses divided into basic training and specialized training. As part of this, the Honda QC Basic Course (HBC) is open not only to Honda associates but also to suppliers, and focuses on training experts in all Honda quality management. Outside Japan, the QC Junior (QC J) Course and the QC Foreman (QC F) Course are offered as basic training.
Themes that need to be addressed in own departments
HBC 1. Coursework
2. Session to review how to address issues 3. SQC implementation in trainees’ own departments aimed at resolving themes/issues
Repeat the cycle of steps (2) and (3) above
Cultivates quality control experts with practical skills by teaching trainees to resolve issues in their own departments.
Overseas quality control training
Training curricula content Category
Course name
Course content
QC Junior (QC J) Course
Targets associates six months to one year after ing Honda to learn the basics of quality control techniques.
Total of 1 day
QC Foreman (QC F) Course
Targets associates engaged in production and quality duties to learn the quality control techniques and approaches required for quality assurance activities.
Total of 2 days
Statistical Quality Control (SQC) Course
Targets associates whose principal responsibility is quality control and quality improvement activities to learn professional quality control techniques and approaches.
Total of 2 days
Honda QC Basic Course (HBC)
Targets associates who are responsible for the core of quality control activities to learn skills that allow them to resolve difficult problems/issues with the aim of becoming quality control experts.
Total of 22 days
Basic training
Specialized training
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Honda SUSTAINABILITY REPORT 2015
Period
Message from the President and CEO Environment
Report Regarding Quality Issues Safety
Special Feature
Quality
Human Resources
Handling quality issues
Performance Report
Philanthropy
Supply Chain
Results of the 2014 Initial Quality Study (IQS) for automobiles: J.D. Power Asia Pacific
Global Quality Committee makes decisions on market actions including recalls When we determine that product issue requires action, we quickly report the issue to governmental authorities in accordance with individual countries’ regulations and 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 Global Quality Committee is quickly convened in accordance with Honda global rules, and decisions concerning market actions are made by its chairperson in consultation with overseas including experts from departments involved with quality issues who are capable of making objective decisions.
< By brand and production facility >
Country US Japan
Country
US
35
Motorcycles
10
Power Products
3
Total
48
Ranking
Honda
No.8
Acura
No.25
Honda
No.3
Segment
Model
Ranking
Compact Car
Civic
No.3
Midsize Pickup
Ridgeline
No.1
Acura TL
No.2
Acura ILX
No.3
Compact Car
Japan
China
Number of recalls
Automobiles
Brand and production facility
< By model segment >
Number of recalls Segment
Sustainability Management
India
Mini-vehicle
N-BOX
No.2
Midsize Car
Vezel
No.3
Compact Upper
Fit
No.2
Mid-Size Upper
Accord
No.2
Midsize Car SUV
CR-V
No.3
Large SUV
Crosstour
No.3
Large MPV
Odyssey
No.1
Upper Compact Car
Brio
No.1
Midsize Car
City
No.3
Compact Car
* Number of recalls worldwide in FY2015
Entry Midsize Car
Independent evaluations of quality
Thailand
Gained high rating in an Initial Quality Study conducted by an independent evaluation organization Honda’s design and development, production, and sales and service departments are working together to win the top ranking in the Initial Quality Study (IQS) for automobiles conducted by J.D. Power, an independent evaluation organization, as an indicator of customer satisfaction, which constitutes the result of the quality cycle.
Brio Amaze
No.1
Jazz
No.2
City
No.3
Midsize Car
Civic
No.1
Midsize Car
Accord
No.1
Midsize Car SUV
CR-V
No.1
* Includes top three vehicles in major markets from January to December 2014. J.D. Power and Associates 2014 U.S. Initial Quality Study SM (based on responses from more than 86,000 owners who purchased or leased a new vehicle as surveyed from February to May 2014) J.D. Power and Associates 2014 Japan Initial Quality Study SM (based on responses from more than 15,000 owners who purchased a new vehicle as surveyed from May to June 2014) J.D. Power and Associates 2014 China Initial Quality Study SM (based on responses from more than 21,000 owners who purchased a new vehicle as surveyed from April to August 2014) J.D. Power and Associates 2014 India Initial Quality Study SM (based on responses from more than 8,000 owners who purchased a new vehicle as surveyed from May to September 2014) J.D. Power and Associates 2014 Thailand Initial Quality Study SM (based on responses from more than 5,000 owners who purchased a new vehicle as surveyed from April to September 2014)
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Honda SUSTAINABILITY REPORT 2015
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