supply chain presentation on honda by gagan mokha
TRANSCRIPT
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SUPPLY CHAIN MANAGEMENTOF
HONDA MOTORS
SUBMITTED BY: PIYUSH SAXENA
ABHISHEK PRATAP GAGAN SINGH
PRATEEK THAKUR ROHAN
SHRIVASTAVA
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HONDA MOTORS
FOUNDER Soichiro Honda with a view personal mobility for every one!!
FOUNDED HONDA MOTORS IN 1948
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Company Description
Automotive Manufacturers – Major
1. Automobiles
2. Motorcycles
3. Power Products
4. Financial Services
HMC Sales Allocation Over the Past 9 Months
12%
81%
3% 4%
Motorcycles
Automobiles
Financial Services
Power Products
Honda is the World’s Largest motorcycle manufacturer but is most known for its automotive industry
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HONDA IN INDIA
Incorporated in dec,1995 Joint venture : Honda motor co. Ltd.
&
Japan and Siel ltd. Honda city introduced in 1997 Sales & distn. – 105 facilities , 62 cities
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Honda Honda’s Operational practices show a
great example of the innovations the Japanese automobile manufacturers perform.
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Operational Strategies Careful site selection of their manufacturing plants
Greenfield Manufacturing Plants In- depth supplier relationship
Close and interactive, similar to a partnership Autonomic organizational structure- ultimate aim is
to create self-managing networks Japanese/North American manager mix
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Honda Purchasing
Suppliers are involved with development and design of new products
Relationship is much like a partnership
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Honda Supply Chain
Honda uses their economies of scale by working with their parts suppliers to order raw materials in large quantities.
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Supply Chain Characteristics The key element for Honda is the flow of
information with their suppliers12 steps:
○ Initial contact, preparation/investigation of Honda parts, quotations, initial plant visit, prototype development, testing and evaluation, mass production quotation, preparation for mass production, trial run, Quality Assurance Visit, agreement, purchase order
In-house engineers
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Suppliers
Boto tech Hongkong- piston & accessories
B-spex trading Japan- auto parts Ningleo bouldlean- steering Shangai viciklong- fuel pumps Bridgestone Michelin
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Honda Supply Chain
Honda Purchasing
Honda Purchasing
Parts Supplier
Parts Supplier
Parts Supplier
Honda Trading
Raw MaterialsMill
Parts Supplier
Parts Supplier
Parts Supplier
Honda Assembly
Plant
Honda Assembly
Plant
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Structural Characteristics Also known as executional drivers that
reduce operating costs and increase productivityEconomy of Scale – All purchasing done by
Honda Trading Corp.Technology – Multipurpose machineryCapacity Utilization – Honda operates
facilities in every major market they enter
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Q.C.D.D.M
Customer Satisfaction is top priorityAccomplished through suppliers
competitiveness in quality, cost, delivery, development, and management (Q.C.D.D.M.)
QualityMost important factorMust be built into production process
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Q.C.D.D.M cont’d
CostSuppliers are given target costsCost reductions through own ideas,
technology, improved productivity, along with joint efforts with Honda in value engineering, and value analysis
DeliverySuppliers must use just-in-time production
system
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Q.C.D.D.M cont’d
DevelopmentUniqueness in design and specificationsHelps create identity for Honda
ManagementPositive attitudeMeasured by Q.C.D.D
FeedbackGrade cards for suppliers
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Sales and Distribution Network
Honda Siel Cars India has a strong sales and distribution network spread across the country. The network includes 80 facilities in 51 cities. HSCI dealerships are based on the “3S Facility” (Sales, Service, Spares) format, offering complete range of services to its customers.
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Competitive Characteristics Strategic and operational variables that
must be factored into the design of a company’s global value chainGlobal value chain
○ Demand chain (marketing, sales, service)○ Supply chain (sourcing, manufacturing,
logistics)○ Product development (R&D, design,
engineering, development, and launch)
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Honda Quality and Efficiency
Quality and Continuous Improvement Employee Driven “Kaizen”“Quality Circles”“Domestic Trouble Reports” (DTRs)MRP II and Web-based Ordering for
Supplier Base as a whole Extent of Efficiency in Supply Chain
Honda Trading “Soybean Example”New Honda Ridgeline Composite
Bed/Box
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Foreign Automakers Share A Similar Philosophy
Customer Service is keyProvides more predictable demand
scheduleAllows for a stronger relationship with
Suppliers
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Comparison With Domestic Automakers More of a collaborative relationship High levels of information sharing
Better information Lower inventory levels The financial health of Suppliers is
extremely importantSharing of Financial prosperity & follies
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Questions
?
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Thank you