Business Process Improvement is best suited for Honda (1)
Manufacturing dexterity of the plants of Honda is now quite flexible in North America. It has been emerging as the major strategic benefits for company. In the era about volatile gasoline prices, the Honda may adjust the production towards the inventory levels much faster than their competitors. Earlier in this year, while the gasoline prices has reached $4 per gallon, company has slowed the production of their Ridgeline pickup trucks at their Canada plant as well as increased output of the best selling vehicles. The fuel prices were eased. When the prices continues of falling as well as demand for the large vehicles enhances, Honda has a ability for adjusting faster than their competitors, says the Ron Harbour, the partner at a Oliver Wyman, who is the publisher of Harbour Report on the auto production.
Auto makers have been used for designing the newer manufacturing process every time they have designed the new car as well as older assembly plants which reflect that. At the Honda, the different models may be assembled effectively as almost all of their vehicles have been designed for putting together similar way, even when its parts have been little different. Here in the East Liberty, doors have been installed on Civic as well as CR-V at similar stage of a process, & its side panels have joined to its roofs at similar point in production line.
The Rationale that Business Process Improvement would add value to Honda Motor is that it would help improve its efficiency. It would help improve the total quality management of the business. it is still beneficial in the current state of things with our economy to implement TQM. The major application of six sigma includes the improvement of quality and in this world of absolute competition and expanding markets, quality is a great differentiator. It plays a very important role in handling competition as well as managing a product or service efficiently and effectively. It is very important for a firm to ensure that it can attain the highest quality standards and bring in a revolutionary change in the organization. It is very important to attain quality in order to gain credibility with customers, creditors as well as the society. It is extremely crucial for a firm to manage quality as it can prove a strategic competency and provide comparative advantage to an organization. "Conformance to specifications" is extremely important in order to satisfy customers. A customer would not only get upset if his specifications are not met with, but he would also face problems if he is unable to utilize the product for the intended purpose. It would not be the right thing to do only due to higher costs which bring in in-competencies.