Introduction Customer Expectations Company Culture (DNA) Culture - - PowerPoint PPT Presentation

AAMA / AIAG Southern Automotive Quality Summit

• Introduction
• Customer Expectations
• Company Culture (DNA)
• Culture of Safety & Quality

Michael Gaines HMA Division Manager (Purchasing)

History / Background 2013‐Today HMA Division Manager Purchasing (ACE) All Purchasing Operations Responsibility (285+ associates) 2007‐2013 HMA Purchasing New Model Department manager (SSE) Manage all New Model activity for Purchasing division at

• HMA. Logistics, PQ, Delivery, etc (85+ associates)

2006‐2007  HMA Parts Quality New Model TM Management of Manufacturing 2004‐2006  HMA Parts Quality Team Manager (TM) Start‐up and management of Manufacturing 2004  HMA Assembly Improvement assignment (EA) Production Line improvement support (3 month assignment) in response to 05 Ody Launch. 2002‐2004  HMA Parts Quality (EA) Supplier Quality Engineer, Parts Quality ‐ Mass Production and Market Responsibility Before Honda  The Torrington Company (IR)  supplier to GM/Ford/ Chrysler Engineer & Department Manager – Bearing Industry Worked in engineering and manufacturing management for Engine Bearings for OEM automakers. Dept Mngr ‐ Turning, Grinding, Assembly 80+ associates. Industrial Engineering degree, Auburn University Current Roles and Responsibilities Honda Manufacturing of Alabama LLC Division Manager Purchasing New Model Supply Chain Parts Quality & MRO

HMIN HAM HCM HSC HMA HDM HPE

Honda Aero

HACI HTM HPPG

Honda North American Operations

Located in Lincoln, Alabama (Talladega County)

Honda Manufacturing of Alabama

HMA is ~40 miles east of Birmingham, AL HMA is ~109 miles west

• f Atlanta, GA

HPPG (Honda Precision Parts of GA) Tallapoosa, GA - Transmissions

Volkswagen

Chattanooga

Toyota Mississippi Kia

Georgia

Honda Manufacturing

• f Alabama

Odyssey, Pilot, Ridgeline, & Acura MDX

2nd‐gen Odyssey from Canada Plant 2 (Nov 2001) Accord V6

(2009)

Line 2 and Pilot SUV (Spring 2004) Ridgeline truck

(2009)

2nd‐gen Pilot

(2008)

3rd‐gen Odyssey

(Fall 2004)

• First HMA Odyssey transferred from HCM
• First HMA Pilot transferred from HCM
• 2005 Odyssey was HMA’s first full model change “UM”
• 2009 Pilot was HMA’s second full model change
• Ridgeline transferred from HCM
• Accord V‐6 Sedan shared production between HMA & MAP

HMA Production Milestones & Flexible Manufacturing

4th‐gen Odyssey

(2010)

Acura MDX

(2013)

1,200 Associates +4,000 Associates 3,000 Associates

• 2011 Odyssey was HMA’s third full

model change

• May, 2013 – HMA celebrates

production of the all‐new 2014 Acura MDX

• Dec. 2013 – 3 millionth
• May 2015 –

New Pilot

3 Millionth (2013) 3rd Gen Pilot (2015)

• Associates

4,000

• Plant size

3.6 million square feet

• Site size

1,350 acres

• Capital Investment

$2 billion

• Models

Odyssey, Pilot, Ridgeline, Acura MDX, V‐6 engines

• Production Capacity

340,000 vehicles & engines

Honda Manufacturing of Alabama and its suppliers accounted for $6.8 billion in economic impact to Alabama in 2014, according to a new report. (Dec 1, 2015)

• Operations performed on‐site:

– Steel and aluminum blanking and stamping, welding, painting, plastic injection molding, aluminum casting, aluminum and ferrous machining, engine assembly, vehicle assembly, testing and quality assurance.

Honda Manufacturing of Alabama Overview

Customer Expectations

• Honda and HMA customers are across the

Globe

• The Expectations and Requirements of the

customers are ever changing but Mostly Increasing.

• From Varying Government Regulations to

Customer Driving Conditions to Appearance / Performance Expectations.

2105 2106

Customer Expectations

• Honda is always driven to innovate

in advance of our Customers Expectations.

• Suppliers should also try to

anticipate and Innovate in advance

• f Automakers expectations.
• Example of Honda Pushing

Innovation for Customer Safety.

VIDEO

Eric Dehoff ‐ Honda R&D Video Crash Simulation to advance early development and testing.

VIDEO

Customer Expectations

• Of Course Build & Delivery Quality Parts

Everyday.

• Study the Auto Industry, the Safety

Requirement, the Technology Advances.

• Bring Innovative Products and Ideas to your

customer that improve vehicle safety, quality, performance and value.

Hybrid / Fuel Cells

AAMA / AIAG Southern Automotive Quality Summit

• Introduction
• Customer Expectations
• Company Culture (DNA)
• Culture of Safety & Quality

Culture (DNA)

• Culture of Safety & Quality

– Critical Control points – Process Control

• Company Culture

– Southern Supply base characteristics and challenges – Leadership & Culture

“Promote an active Culture of Safety and build it into your DNA” ‐ Dr. Mark Rosekind

NHTSA Administrator

• Active Culture of Safety
• Critical Control points must be identified and have process controls
• Identified, Assess, ??? And Trained
• Acitivty must be done during NM Development – it is a Critical Step in Development
• Dr. Rosekind – “Promote an active Culture of Safety and Build it into your DNA”

– AIAG meeting life saving mission. – Must make a transofrmation of the Auto industry – Can see a day when the safety of the occupants is gurrenteed by avoid the crash not just protecting the occupant during the crash. – American and customers across the world depend on our quailty and safety. – Safety Transformation – to change not just quality but mindset. – Best crash result is the cash that never happens and the best defect control is the control that avoids the defect from coming off the floor. – Proactive safety culture is important to every employ in your company. – Proactive safety culture has a long way to go in the Auto Industry. – Safety culture transofrmation is linked to the Technology transformation. – Connected / Automated vehicles will save lives – but what will that mean your parts? And the critical control points… how will a bumper granish change, sensor mounting bracket – simple parts will impact these new technologies. – Organizational change takes time and long term efforts. – ABS – will be standard on all vehilces… what is next back up cameras, crash warning systems, lane departure systems. – 94% traffic accidents caused by human error. – We are taking the wheel out of the drivers hands… and putting it in the hands of software engineer, systems engineer, scientists and designers and human factor experts…. And your Operators.

• During Mass Production – are we assigning trouble rank correctly PFMEA Enhansce Containment  Escalate

 Confirm C/m then build those c/ms into your documentation and future developments.

• I am optimistic about the future of the southern automotive industy and I am proud to be parts of this exciting

growing group.

Training Scope: CCP  PFMEA  PQCT  Operation Standards

New Model Critical Control Point Mgmt:

Identify  Assess Risk  Set Check Item/Method  Train

Drawing Safety Ranking By Customer Training of Critical Control points to ALL Parties that Influence the manufacturing.

Critical Control Points & Process Control

FTA D/PFMEA PQCT SOP

Is your company taking these critical New Model steps for Safety related parts?

New Model ‐ Critical Control Point Management

Process Control Development

Southernn Supplier Characteristics & Challenges

• Very Fast Growth in Southern

Automotive Supply Base (since 2000)

• ‘Northern’ or ‘Sister’ company

support is Decreasing

• Skilled Trade & Maintenance

workforces is Insufficient

• Leadership is Thin

Southern Supplier Performance has been lower in both Quality and Delivery to Northern or Overseas competitor. Southern Supplier must Quickly Advance their Improvement

Your Company Culture is more valuable than all your assets.

Did you walk by un‐labeled Nonconforming Product Yesterday?

Your company culture defines the way in which your organization interacts with one another and how the team interacts with the

• utside world, specifically your

customers and suppliers.

If you don’t create & drive the Culture in Your Organization, then it will create Itself.

Why Company Culture (DNA)

Safety Transformation Safety Transformation – to change not just

• change not just

Quality but Quality but Mindset.

Mindset.

– D – Dr. R Rosekind

Year over Year Quality Trend of a Company who has had Leadership Instability and Culture Crisis

(1) Strong Leadership can grow and maintain a good Company Culture.

Why? Why is Leadership Important?

When a company loses it’s Good Culture… then instability occurs. Loss of Culture Most likely occurs with Leadership Turnover

Top Mgmt trust and ownership – communication to the associates – Improved processes Development & Empowerment of Associate (Front Line Leadership, Technical, Prob Solving) Improved Strategic planning for daily operations & system improvements Stronger accountability and application of PDCA

Supplier DNA Leadership Systems Skilled Associates Daily Management

1 2 3 4

A Honda Story

In Early January, a Honda Supplier’s Associate purchased a Honda CRV and their family was unfortunately in an accident. Another car ran a stop sign causing a narrow offset collision. The

• ccupants of the other vehicle were

life‐flighted to the hospital and are recovering. The accident early on a Monday Morning on a snowy road in Ohio. Them impact was at approximately 60 mph These Pictures are of that Honda CRV, Occupants of the CRV were a mother and her 2 children ( 5yrs and 8 months old.)

A Culture of Safety & Quality is critical for Every Part & Every Supplier

All doors opened and closed without issue…. All glass was intact All occupants of the Honda CRV were uninjured.

Safety Matters – Your Parts Matter – Everyone of our associates, their families Matter.

Re‐evaluate your company’s Culture (DNA) Does it promote an active “Culture of Safety & Quality ”? Help us all Advance Southern Automotive Supplier Development “54 Million Self‐Driving Cars by the year 2035”

‐ The Car Lab

Final Thought…

“Now we can see the day when the primary safety features of a vehicle are designed to ensure that the crash, once a foregone conclusion, never happens…” – Dr. Rosekind