Honda North America PurchasingHonda North America Purchasing
Honda Overview
Purchasing in NA
Stability Improvements
Supplier Development
Production Characteristics
Lean Partnership
Working together to achieve Global Competitiveness, Locally
Honda North America PurchasingHonda North America Purchasing
Honda Overview
Purchasing in NA
Stability Improvements
Supplier Development
Production Characteristics
Lean Partnership
Working together to achieve Global Competitiveness, Locally
LEGEND
Production (parts included)Research and DevelopmentSalesRegional Headquarters
Global OperationsGlobal Operations
Over 150 Facilities Worldwide
North AmericaRegional Operations
Asia/OceaniaOperations
Japan RegionalSales OperationsEurope/
Middle East/Africa Operations
South AmericaRegional Operations
Six Operating Regions
Global OperationsGlobal Operations
China RegionalOperations
Honda North America PurchasingHonda North America Purchasing
Honda Overview
Purchasing in NA
Stability Improvements
Supplier Development
Production Characteristics
Lean Partnership
Working together to achieve Global Competitiveness, Locally
Develop supplier capabilities to meet QCDD (Quality, Cost, Delivery & Development) requirements
Develop supplier capabilities to meet QCDD (Quality, Cost, Delivery & Development) requirements
Understand future direction of the industry and develop strategies and systems to enable Honda Motors and our suppliers to adapt to
changes and gain competitive advantage.
Develop and manage material flow to meet plant requirements with optimum inventory levels at competitive logistics cost.
Manage purchased parts cost to achieve globally competitive costs and support Honda Motors’ competitiveness.
Build a world class purchasing organization through development of associates and business practices
We will develop and manage a competitive and stable supply base to support all of Honda’s North American Manufacturing facilities
with world class Quality, Cost, Delivery, and Development.
North America Purchasing VisionNorth America Purchasing Vision
• 600+ OEM Suppliers supplying our N.A. Mfg facilities ($16 Bil)
• 5,000 MRO Suppliers for N.A. OEM
• 600+ OEM Suppliers supplying our N.A. Mfg facilities ($16 Bil)
• 5,000 MRO Suppliers for N.A. OEM
•United States: Suppliers located in 34 States
•Canada: Suppliers located in 2 Provinces
•United States: Suppliers located in 34 States
•Canada: Suppliers located in 2 Provinces
Number of SuppliersNumber of Suppliers
Locations of SuppliersLocations of Suppliers
Honda Suppliers in North AmericaHonda Suppliers in North America
Honda OEM Suppliers
Honda North America PurchasingHonda North America Purchasing
Honda Overview
Purchasing in NA
Stability Improvements
Supplier Development
Production Characteristics
Lean Partnership
Working together to achieve Global Competitiveness, Locally
Supplier Support Model Supplier Support Model -- StabilityStability
Best Suppliers Self Motivated
Stable SuppliersStable Suppliers
Lean Network
Stability Concerns
ProductionCharacteristics
Activity
StabilityProjects
Benchmark Suppliers
Training
Teaching
Problem Solving
Hands On Doing
Training
Teaching
Facilitating
Strategic Partnering
Training
Teaching
Networking/Showcase
Benchmarking
Honda InvolvementSelf-Directing‘Hands-on’ Assistance Facilitation
Stability Stability ProjectsProjects
Production Production CharacteristicsCharacteristics
Lean Lean NetworkNetwork
REACTIVE
PROACTIVE
NEXTLEVEL
High Level Purpose:
Move entire supply base toward self-directed improvement capability.
Methodology:
Level and type of support varies according to supplier capability. Not a one size fits all approach.
OE Survey
1. Systems2. Process
Assessment
Stability
Suppliers
Identify the gaps, set baseline &
targets
Analysis
Situation Analysis (SA)
Specified Action PlanSystem
Process
Mgmt
OEE
Scrap
Plan (P)
Monthly Progress
Identify supplier with Q&D concerns
Supplier Selection
Problem Solving Strategy Training Plan
Implementation Plan
Do (D)
Mid Project Check
Final Report
Check (C) Act (A)
Implement Plan Management Check Adjust plan if necessary Standardize improvements
Implement on 2nd line
Stability Improvement ProcessStability Improvement Process
Stability Improvement ExampleStability Improvement ExampleOEE Trend
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
44%
59%62%
48% 48%
72%
0%
32%
57%
40%44%
49%
55%
0%
31%
59%55% 55%
35%
0% 0%
66%
20%
69%
43%
55%
20%
56%52%
70%
0%
63%
54%
50%47%
57%
38%
0%
62%63%
59%
32%33%
65%
45%
67%
73%
47%
55%
61%
0% 0%
63%
25%
54%
45%
35%
52%
41%
37%
64%
0%
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
8/1,M
on8/2
,Tue
8/3,W
ed8/4
,Thu
8/5,F
ri8/6
,Sat
8/7,S
un8/8
,Mon
8/9,T
ue8/1
0,W
ed8/1
1,Th
u8/1
2,Fr
i8/1
3,Sa
t8/1
4,Su
n8/1
5,Mon
8/16,
Tue
8/17,
Wed
8/18,
Thu
8/19,
Fri
8/20,
Sat8/2
1,Sun
8/22,
Mon8/2
3,Tu
e8/2
4,W
ed8/2
5,Th
u8/2
6,Fr
i8/2
7,Sa
t8/2
8,Su
n8/2
9,Mon
8/30,
Tue
8/31,
Wed
3rd 1st 2nd Target
SATSAT SATSATSAT/SUNSAT/SUN SAT/SUNSAT/SUN
Supplier was working working most weekends to meet Customer Demandwhich negatively impacted workforce stability and the QCD performance
of the Supplier, Honda and most importantly the final Customer
PQI
QI
2'x2'
PQI
QI
2'x2'
Odyssey HU Main Line 2-Shifts
IPKUnit Unit
IPK IPKUnit
IPKUnit
IPKUnit
IPKUnit
IPKUnit
PQI
QI
2'x2'
IPKHub
IPKFCB
IPKFCA
IPKUnit
PQI
QI
2'x2'
PQI
QI
2'x2'
PQI
QI
2'x2'
PQI
QI
2'x2'
PQI
QI
2'x2'
PQI
QI
2'x2'
PQI
QI
2'x2'
Scanner
CQG
CQG
17PQI
QI
2'x2'
3'
3'
CQG
CQG
HRoom
HRoom
PQI
QI
2'x2'
CQGPT
18 Belt Conv
Bar CodePrinter
IPKUnit
Scanner
IPKUnit
Scanner
IPKUnit
Scanner
IPKUnit
Scanner
Bar CodePrinter
Com
puter
ComputerComputer Bar
Code Printer
Bar Code
Printer
Bar
Code
Printer
1-251-24
IPKHub
IPKUnit
PQI
QI
2'x2'CS24x16
2'4"x1'6"
ComputerStand
IPKUnit
Scanner
IPKUnit
Scanner
IPKUnit
Scanner
IPKUnit
Scanner
IPKUnit
Scanner Scanner
JIG
Scanner
JIG
Scanner
JIG
Scanner
JIG
Scanner
JIG
Scanner
JIG
Knob11.5x17x4.5
Knob
wb67x2116'7"x2'11"Work Bench wb67x2116'7"x2'11"Work Bench wb67x2116'7"x2'11"Work Benchwb67x2116'7"x2'11"Work Bench wb67x2116'7"x2'11"Work Benchwb67x2116'7"x2'11"Work Benchwb67x2116'7"x2'11"Work Bench wb67x2116'7"x2'11"Work Bench
3'4.
5"x5
'4"
HR3
45x5
4
Roo
mH
earin
g
Computer
JIG
Scan
ner
Scan
ner
JIG
Computer 3'4.
5"x5
'4"
HR3
45x5
4
Roo
mH
earin
g
3'4.
5"x5
'4"
HR3
45x5
4
Roo
mH
earin
g
Computer
JIG
Scan
ner
Sca
nner
JIG
Computer
PT
3'4.
5"x5
'4"
HR3
45x5
4
Roo
mH
earin
g
Computer
JIG
Sca
nner
CQG
3'4.
5"x5
'4"
HR3
45x5
4
Roo
mH
earin
g
Sca
nner
JIG
Computer
CQG
3'4.
5"x5
'4"
HR3
45x5
4
Roo
mH
earin
g
C63x12
6'3"x1'2"Creform
C63x12
6'3"x1'2"Creform
C63x12
6'3"x1'2"Creform
C63x12
6'3"x1'2"Creform
C63x12
6'3"x1'2"Creform
C63x12
6'3"x1'2"Creform
wb67x211 6'7"x2'11" Work Bench
C63x12
6'3"x1'2"Creform
Creform
C63x32
6'3x3'2"
Creform
C63x32
6'3x3'2"
DTC Creform
C63x32
6'3x3'2"
Creform
C63x32
6'3x3'2"
DTC
BTC
BTC
BTCDTC
BTC
BTC DTC
DTC
C63x12
6'3"x1'2"Creform
wb67x211 6'7"x2'11" Work Bench
HubIPK
UnitIPK
Creform
C63x32
6'3x3'2"
Creform
C63x32
6'3x3'2"
Creform
C63x32
6'3x3'2"
IPKUnit
IPKHub
wb67x211 6'7"x2'11" Work Bench
C63x12
6'3"x1'2"Creform
C63x12
6'3"x1'2"Creform
wb67x211 6'7"x2'11" Work Bench
HubIPK
UnitIPK
LINE 21
C101x3910'1"x3'9"Creform
CCS51x195'1"x1'9"Stand
Creform Computer
Creform
0 .0%10 .0%20 .0%30 .0%40 .0%50 .0%60 .0%70 .0%80 .0%
Jun- Jul- Aug-Se p-Oct- Nov-D ec-Jan- Feb-M ar-Ap r-May- Q1Q 2MY Q3 Q4YTD0.0%5.0%10.0%15.0%
20.0%25.0%30.0%35.0%
40.0%45.0%50.0%
Jun-Jul- Aug-Sep- Oct-Nov-D ec-Jan-Fe b-Mar-Apr -May-Q1 Q2MY Q3Q4Y
0.0%1.0%2.0%3.0%
4.0%5.0%6.0%
7.0%
OEE Trend
55.3% 53.5% 52.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar-
MY Line #21
1
Detailed line performance analysis showed poor process balance& poor OEE (high downtime, lost time and scrap)
OEE
Downtime Trend
9.0%
32.8%
26.4%
14.3%
18.2%
32.7%
0.0%5.0%
10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%
RecordedDT Trend UnrecordedDT
MY Line #21
1
Downtime / Lost Time
Scrap Trend (Pcs in %)
6.2%
3.9%3.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr-
MY Line #21
1
Scrap
Target
Target
Target
Advanced Planning tools allow various Scenarios to
be tested to establish detailed performance
targets
Advanced Planning tools allow various Scenarios to
be tested to establish detailed performance
targets
Goals and ObjectivesGoals and ObjectivesMeasurables Baseline Data Target
• Daily Production 463 daily average 670 daily• Overtime Hours 54.8 monthly 0 (zero)• Process Utilization 128% 93%• OEE 50.8% 70.3%
– Operating Rate 72.7% 84.8%– Performance Rate 73.2% 84.2%– Quality Rate 95.5% 98.5%
• Line Balance 66% 82%
Baseline Targets Actual Gap Closure Who 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9 16 23 30
3 3.1
Improved awareness of
expectations, using Lean Manufacturing
tools to support project.
PPLH 10.6 PPLH 15.9Improve PPLH by 16.6%
2
Improve line 21 OEE from 50.8% to 70.3%.
Eliminating 100% of overtime.
2.3
Improve Quality Rate by better
capture of repair units being
removed and introduced to
production line.
100.0%* Base line data did not
capture product that was removed
from line for repairs. Loss was
captured in Performance
measurements.
95.50%
2.3.1
2.3.3 Modify system to contain failures in L8 and SMT from being sent to final assembly
2.3.5
2.3.6
2.3.4 Develop daily process for formal review of concerns
Coordinate and guide on parallel line activity L8
2.3.2 Modify system to identify location, time and type of failures in final assembly
Enhance current rework tracking to better capture specifics on all concerns
1.1.4
Increase average daily production from 560 daily to 670 daily or 16.4%
1.1.5
Improve Operating Rate through the
elimination of largest recorded downtime issues.
84.80%72.70%
2.2
Improve Performance Rate
through better documentation and
improved awareness of
production targets.
69.90% 86.80%
Establish model line activity on two lines utilizing lean
and BP techniques. ( line 21 Odyssey / line L8)
1.1
1.2
1.1.6
1.2.2
1.2.4
1.2.6
Enhance visual management to provide better
communication, training, and
management of performance.
Posted information
includes basic performance measurables. Data not lend
itself for effective problem solving.
Add OEE graphs and Idea Tracking Charts to
current displays.
1.2.1 Instruct in the utilization of OEE charts and graphs
#REF!
#VALUE!
#VALUE!
1
2.1
Action ItemsObjectivesGoal
Conduct parallel projects using BP outline for activity. Instruct and guide team members to achieve success
No standard process for continuous
improvement.
Develop standard process for activities.
1.1.3
100% elimination of all overtime (daily and weekend) avg. for June/July 54.8hrs
1.1.2 Provide necessary training for team members.
December
1.1.1 Outline process to be followed for improvement projects.
NovemberOctoberSeptember
1.2.5
Develop idea tracking charts for production and project use.
1.2.3 Display of visual management line side.
Enhance current downtime tracking to better capture specifics on all concerns
2.1.1
2.1.2
2.1.3
2.2.1
2.1.4
2.1.6
2.1.5
2.2.4
2.2.5
Improve PPLH by 16.6%2.2.2
2.2.3
20062005January
Improve line balance by 16% (66% to 82%) Reduce work stations from 26 to 21
Decrease process utilization from 128% to 93% or 27.3%
August
3.1.2 Use Decision Analysis process to determine best scenario
3.1.1 Review of Situation Analysis (SA) summary items
3.1.4
3.1.3 Determine action plan and schedule to implement improvements
3.1.6
3.1.5
Brown
Specified Action Plans (SAP) Specified Action Plans (SAP)
Implementation of detailed data collection and analysis systems and input from the associates on the production floor yielded excellent results
OEE Trend
55.3%67.8%
76.9% 77.0% 75.0%
53.5% 52.4%64.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- A
MY Line #21
1
OEE Downtime Trend
9.0%
24.1%15.7% 14.2% 16.7%
32.8%
26.4%
14.3%
12.9%7.8%
6.9% 8.5% 7.2%
25.0%32.7%
18.2%
0.0%5.0%
10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%
Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar-
RecordedDT Trend Unrecorde
MY Line #21
1
Downtime Scrap
6.2%
1.1% 1.0% 0.7% 1.1%1.9%
3.3%3.9%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan
MY Line #21Scrap
Target
TargetTarget
Results, with Associate InputResults, with Associate Input
Final ResultsFinal Results
Input:Honda Labor $68KHonda Travel $75KSupplier Labor $18K
$161K
Output:
Direct O/T -$2,365KIndirect O/T -$592K
-$2,957K
18:1Out/In
Measurables Baseline Goals Final• Daily Production 463 daily avg 670 daily 730• Overtime Hours 54.8 monthly 0 (zero) 0• Process Utilization 128% 93% 84%• OEE 50.8% 70.3% 76.4%
– Operating Rate 72.7% 84.8% 83.3%– Performance Rate 73.2% 84.2% 92.8%– Quality Rate 95.5% 98.5% 98.9%
• Line Balance 66% 82% 84%*.
Supplier Support Model Supplier Support Model –– Production CharacteristicsProduction Characteristics
Best Suppliers Self Motivated
Stable SuppliersStable Suppliers
Lean Network
Stability Concerns
StabilityProjects
Benchmark Suppliers
Training
Teaching
Problem Solving
Hands On Doing
Training
Teaching
Facilitating
Strategic Partnering
Training
Teaching
Networking/Showcase
Benchmarking
Honda InvolvementSelf-Directing‘Hands-on’ Assistance Facilitation
REACTIVE
PROACTIVE
NEXTLEVEL
ProductionCharacteristics
Activity
Stability Stability ProjectsProjects
Production Production CharacteristicsCharacteristics
Lean Lean NetworkNetwork
High Level Purpose:
Move entire supply base toward self-directed improvement capability.
Methodology:
Level and type of support varies according to supplier capability. Not a one size fits all approach.
Production Characteristic ExampleProduction Characteristic Example
• Value Stream Mapping
• 3P: Production Preparation Process
• Summary of Results
Improving Production Characteristics…….
in Mass Production & New Model
•VSM: Shows Production & Information flow from Customer Raw Materials
C/T N/AC/O N/A
2500 sets 2500 sets Assoc. N/AOEE N/A
C/T 2.3 C/T 32C/O 5 min C/O 60 min
1 day Assoc. 1 2500 sets Assoc. 4 1540 setsOEE 85% OEE 88%
C/T 32C/O 0 min
1500 sets Assoc. 3 1800 setsOEE 87%
C/T 1.5 C/T 13.8 C/T 5 C/T 32 C/T 33C/O 30 min C/O 50 min C/O 45 min C/O 0 min C/O 0 min
5 days Assoc. 2 13000 sets Assoc. 2 5000 sets Assoc. 6 6000 sets Assoc. 1 240 sets Assoc. 5OEE 61% OEE 83% OEE 61% OEE 91% OEE 91% 1200
sets
8.9 Days 12.5 Days 6.6 Days 4.3 Days 0.2 Days 0.9 Days
35.8 sec 45.8 sec 5 sec 32 sec 33 sec
33.4 Days151.6 Seconds
Rollform
Pillar Cover Repack
Center Hemming
Twin PressLaser Weld400 Ton Blanking
Bending
Lead TimeProcess Time
Comp LineInner Pierce
CustomerDemand ~ 1380Takt ~ 60 sec
SuppliersProduction
Control
MilarkHonda Trading Penntecq
Berwick
DailyOrder
7-14-26 Wk Forecast 7-14-26 Wk
Forecast
Daily Order
1 / Day HDM
7 / Day MAP
Shipping
Warehouse
1 / Day W/H
Van Sheet
1 / Wk
Honda Trading
Berwick
1 / Day
Penntecq
1 / Day
Berwick
3 / Wk
Milark
Warehouse 3 / Wk
Increase delivery frequency to
1/Day. Setup kanban.
Eliminate deliveries to Warehouse. Milark deliver to Cairns plant.
Milark reduce batch sizes. Pack in smaller
containers.
Setup kanban to supplier. Setup
kanban.
Setup kanban.
Setup kanban.
Setup kanban.
Setup kanban.
Improve Twin Press quality.
Setup kanban to supplier.
Setup kanban.
Setup kanban.
HDM deliveries direct from Cairns
plant.
Value Stream MappingValue Stream Mapping
VSM: Shows Production & Information flow from the Customer to Raw Material- Identifies sources of waste and provides a common language
3P 3P –– Production Preparation ProcessProduction Preparation Process
Applications: Objectives:
The purpose of 3P is to design out waste and simulate the process with a cross functional team to achieve a higher level of safety, quality, productivity and delivery at start-up.
3P Method:Cross-functional InvolvementLower Capital InvestmentProcess InnovationCycle Time SimulationPlanned Parts Presentation
Traditional Method:Low Associate InvolvementExcessive Capital InvestmentCopy of Existing ProcessNo SimulationParts Presentation Afterthought
- New Products- Design Changes- Changes In Demand- Relocation Of Process- Mass Production Improvements
- Use Minimal Resources to Meet Customer Takt Time- Eliminate Waste Prior to Production Start
3P Methodology:- Clear Objectives (MP Eff. WIP, Flr Space)- Cross-functional Team (prod, quality, ms, maint,)- Creativity Before Capital- Quick and Crude vs. Slow and Elegant- Tight Focus On Time (1 week)
Create 7 AlternativesSituation AppraisalTuesday
Full Scale Mock-upEvaluate AlternativesWednesday
DocumentationSimulate / KaizenThursday
3P / Lean Training
PM
Results PresentationFriday
Monday
AM1 Week Schedule:
AFT
ER
3P
3P Proposal
PPLH WIP FL/SP
BE
FOR
EA
FTE
R%
IMP
$AV
ING
S
$300KN/A$450K
47%N/A37.6%
4820N/A45
9100N/A32.7• VA time = 50.9• Total M/P = 22 for two shifts all 4 parts.
• VA time = 66.9.• Total M/P = 16 for two shifts all 4 parts.
0
10
20
30
40
50
60
70
80
Pier
ceC
onve
yor
T/T
Con
veyo
rSe
aler
Con
veyo
r
F/I
Load
0
5
10
15
20
25
30
35
Load
MIG
1
MIG
2U
nloa
d T/
T
Spot
Hem F/
I
s u p p ly
s u p p ly
supp
lysu
pply
INV.
INV. supp
ly
L/R Front Sash Final Weld Cell
s u p p ly
s u p p ly
supp
lysu
pply
INV.
INV.
supp
ly
L/R Rear Sash Final Weld Cell
3P 3P –– Eliminating waste prior to New ModelEliminating waste prior to New ModelNVAVA
NVAVA
One Time Savings = $300KAnnual Savings = $450K1st Yr Savings = $750K
Production Characteristics ResultsProduction Characteristics Results
Baseline 3P Result % Improve Baseline 3P Result % Improve Baseline 3P Result % Improve1 A ATV Frame Weld 24.0 33.7 40.4% 1.6 days 1.6 days 0.0% 4463 3802 14.8%2 B Door Mirror Assembly 5.9 8.2 39.9% 3245 parts 110 parts 97.0% 2191 1080 50.7%3 C Cat Con Weld 6.3 7.9 25.4% 1600 parts 870 parts 45.6% 3500 3370 3.7%4 D Rail Assembly 9.1 13.7 49.9% No Change 609 187 69.0%5 E Door Mirror Assembly 14.4 20.8 44.0% 2228 1568 30.0%6 F Seat Sub-Assembly No Change 240 parts 72 parts 70.0% 605 328 46.0%7 G Radio Assembly 5.7 6.9 21.1% 169 101 40.2%8 H Cable Assembly 8.6 9.4 9.3% 35 parts 12 parts 66.0% 1116 1116 0.0%9 I Differential Case Assembly 3.5 7.3 108.3% No Change 1409 1057 25.0%10 J Door Liner Assembly 8.9 10.7 20.2% No Change 1833 1718 6.3%11 K Door Liner Assembly 5.5 9.0 63.6% No Change 2574 2310 10.3%12 L Module Assembly 5.3 6.6 24.5% 874 820 6.0% 50 5 90.0%13 M Pillar Garnish Assembly 11.8 18.4 55.9% 744 866 -16.4%14 N RES Assembly 1.7 2.1 23.5% 56 pcs 18 pcs 68.0% 1160 638 45.0%15 O Blower Assembly 17.7 22.4 26.6% 1800 pcs 1800 pcs 0.0% 656 399 39.2%16 P Brake Pedal Weld 39.9 52.7 32.1% 56 parts 6 parts 91.0% 2343 1053 62.0%17 Q Blower Assembly 14.8 18.1 22.0% 18.0 1.0 94.4% 543 216 60.2%18 R Exhaust Pipe Weld 20.0 46.0 130.0% 38 pcs 1 pc 97.0% 431 310 28.0%19 S ELD Assembly 100.9 134.6 33.4% 1339 pcs 259 pcs 80.6% 1207 978 19.0%20 T Cable Assembly 31.0 47.0 51.6% No Change 848 324 61.8%21 U Rear Tray Injection Molding 13.1 19.6 49.6% 2 pcs 0 pcs 100.0% 1140 396 65.3%22 V Blower Assembly 10.3 14.0 35.9% 23.0 10.0 56.5% 3444 492 85.7%
43.2% 62.3% 38.0%
Supplier Mass Production 3P Results
Supplier#
Floorspace:
Floorspace
Average % Improvement
TitlePPLH WIP
PPLH: WIP:
Baseline 3P Result % Improve Baseline 3P Result % Improve Baseline 3P Result % Improve1 MMP Final Repair Area 96820 62298 35.7% No Change 8626 6122 29.0%2 MMP AF Sub-Assy Area Layout 32306 10442 67.7% No Change 5032 4381 12.9%3 MMP Tank & Rear Fender Assembly 747 585 21.6% 38 20 47.4% 508 371 27.0%4 MMP Engine Assy 46.3 22.3 51.9% 94 55 41.5% 2934 2416 17.7%5 MMP Paint - PWC Move (L1 to L3) 2037 1158 43.2% 884 402 54.5% 3976 1557 60.8%
44.0% 47.8% 29.5%Floorspace:
Floorspace
Average % Improvement
TitleAssociate Walking Distance WIP
Assoc Walking: WIP:
In-house (MMP) 3P Results
Plant#
Baseline 3P Result % Improve Baseline 3P Result % Improve Baseline 3P Result % Improve1 A Rail Sub-Assy 11.3 18.8 66.7% 50 parts 5 parts 90.0% 740 396 46.0%2 B Door Liner Assembly 2.4 3.2 33.3% 36 parts 16 parts 57.0% 4990 2040 59.0%3 C Tire Cover Assembly 19.1 31.9 67.0% 3.8 days 0.8 days 79.0% 4800 620 87.1%4 D Visor Assembly 19.0 31.0 63.2% 3.8 days 3.2 days 16.0% 1672 379 77.0%5 E Tire Mount & Rear Fork Assy No Change 1.75 days 1.01 days 42.3% No Change6 F Under Cover Injection Molding 28.0 55.0 96.4% No Change 512 360 29.7%7 G Rear Knuckle Casting 25.7 34.3 33.5% 560 parts 180 parts 68.0% 2434 1767 27.0%8 H Throttle Body Assy 19.4 20.8 7.2% No Change 855 714 17.0%9 I Brake Hose Bracket Weld 146.0 211.0 44.5% No Change No Change
10 J Sash Weld 32.7 45.0 37.6% No Change 2275 1138 47.0%11 K Rear Tray Injection Molding 15.5 26.3 69.7% 5 parts 3 parts 40.0% 242 196 19.0%12 L Rear Knuckle Machining 49.8 53.8 8.0% No change 2112 1848 12.5%13 M Trailing Arm Assembly 14.5 14.5 0.0% 1.7 days 1.0 days 41.0% 1029 1029 0.0%14 N Front Knuckle Sub-Assembly 51.3 102.5 99.8% 3.0 days 1.2 days 60.0% 1240 1204 3.0%
48.2% 54.8% 35.4%Floorspace:
Floorspace
Average % Improvement
TitlePPLH WIP
PPLH: WIP:
Supplier New Model 3P Results
Supplier#
Average 3P Improvement: PPLH: 45.1%, WIP: 58.9%, Floor Space: 36.6%
Supplier Support Model Supplier Support Model –– Lean NetworkLean Network
Best Suppliers Self Motivated
Stable SuppliersStable Suppliers
Stability Concerns
StabilityProjects
Benchmark Suppliers
Training
Teaching
Problem Solving
Hands On Doing
Training
Teaching
Facilitating
Strategic Partnering
Training
Teaching
Networking/Showcase
Benchmarking
Honda InvolvementSelf-Directing‘Hands-on’ Assistance Facilitation
REACTIVE
PROACTIVE
NEXTLEVEL
ProductionCharacteristics
Activity
Lean Network
Stability Stability ProjectsProjects
Production Production CharacteristicsCharacteristics
Lean Lean NetworkNetwork
High Level Purpose:
Move entire supply base toward self-directed improvement capability.
Methodology:
Level and type of support varies according to supplier capability. Not a one size fits all approach.
Supplier Lean NetworkSupplier Lean NetworkSupplier Challenges:
1. Overproduction2. Excess inventory3. Defects 4. Non-value added
processing5. Waiting6. Excess motion7. Transportation8. Underutilized people
Typically 95% of Total Lead Timeis Non-Value Added!!!
5%
Non-value added
Value added
Lean Manufacturing Methods are the keys to meeting these challenges
• Outstanding Quality• Global Competition• Flexibility• Global Sourcing
Establish a Lean NetworkEstablish a Lean Network
• Comprised of 40+ Supplier Partners• Lead by Steering Committee
• 9 Supplier & 2 Honda members• Facilitated by Honda
• Coordinate meetings & communicate to members
• Arrange Benchmarking visits
• Share Best Practices
• Coordinate Lean Workshops & Lean Training
• Stabilize Network & position for growth
• Showcase Lean Implementations at annual Lean Network Conference
Stable Suppliers
Initial FocusBenchmark
Non-stable Suppliers
Selection of Suppliers
Team atmosphere for mutual learning, assistance & improvement within the Supplier base (networking)
Team atmosphere for mutual learning, assistance & improvement within the Supplier base (networking)
Lean Supplier Network Mission StatementThrough a diversified network of suppliers, guide the development,
implementation, and measurement of Lean manufacturing practices by information sharing, best practices, and active participation
Lean Supplier Network Mission StatementThrough a diversified network of suppliers, guide the development,
implementation, and measurement of Lean manufacturing practices by information sharing, best practices, and active participation
•Benchmarking•Benchmarking
•Project Support•Project Support
•Workshops (VSM, Kanban, 5S)•Workshops (VSM, Kanban, 5S)
•Training (Mat’l Flow, TPM, Ergo)•Training (Mat’l Flow, TPM, Ergo)
•Quarterly meetings•Quarterly meetings
•Monthly Steering Cmte Meetings•Monthly Steering Cmte Meetings
NetworkProvidesNetworkProvides
Lean Principles & Best Practices To Improve QCD
Supplier Lean NetworkSupplier Lean Network
Lean Network Workshop HistoryLean Network Workshop History
1,828108Totals
68342FY 0699738FY 0544828FY 04
AttendeesClassesKi
• VSM (Value Stream Mapping• Set Up Reduction• Pull / Kanban Systems• Cellular Mfg• Yokoten – Maintenance• TPM• Quick Changeover• Material Flow• Ergonomics & Safety• MOST & Standardized Work• OEE• Labeling & Traceability• 5S• Energy Cost Reduction• Safety• Suggestion SystemsAttendance since 80Ki = 719 Supp Assoc
• VSM (Value Stream Mapping• Set Up Reduction• Pull / Kanban Systems• Cellular Mfg• Yokoten – Maintenance• TPM• Quick Changeover• Material Flow• Ergonomics & Safety• MOST & Standardized Work• OEE• Labeling & Traceability• 5S• Energy Cost Reduction• Safety• Suggestion SystemsAttendance since 80Ki = 719 Supp Assoc
Workshops provided by Network membersWorkshops provided by Network members
Over 2,500 Supplier Associates trained byHonda and Network Members since FY 04Over 2,500 Supplier Associates trained byHonda and Network Members since FY 04
• Lean Overview• VSM (Value Stream Mapping)• Lean Simulation• Pull / Kanban Systems• 5S• Visual Workplace Mgmt• OEE• 3P (Prod. Prep. Process
• Lean Overview• VSM (Value Stream Mapping)• Lean Simulation• Pull / Kanban Systems• 5S• Visual Workplace Mgmt• OEE• 3P (Prod. Prep. Process
Training provided by HondaTraining provided by Honda
Expectations & ResultsExpectations & Results• Must have top management support.• No layoffs as a result of improvement activity.• Methods learned are applied at your facility.• Results of Projects are showcased for the benefit of the
network.– At Quarterly Meetings– At Fall Lean Network Conference
Lean Network ResultsLean Network ResultsManpower Efficiency
Manpower Efficiency - Sq. Feet- Sq. Feet Inventory
ReductionInventory Reduction Total SavingsTotal Savings
+8.1%+8.1% -447,000-447,000 -$30.7M-$30.7M -$97.1M-$97.1M
Develop supplier capabilities to meet QCDD (Quality, Cost, Delivery & Development) requirements
Understand future direction of the industry and develop strategies and systems to enable Honda Motors and our suppliers to adapt to
changes and gain competitive advantage.
Develop and manage material flow to meet plant requirements with optimum inventory levels at competitive logistics cost.
Manage purchased parts cost to achieve globally competitive costs and support Honda Motors’ competitiveness.
Build a world class purchasing organization through development of associates and business practices
We will develop and manage a competitive and stable supply base to support all of Honda’s North American Manufacturing facilities
with world class Quality, Cost, Delivery, and Development.
North America Purchasing VisionNorth America Purchasing Vision
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