Sunday, September 14, 2008

Honda’s Wings Set to Scale New Heights



As contained in the promo of Stunner CBF, the newest Honda motorcycle, this stunning rock star is truly creator’s commitment, seller’s delight and buyers’ pride. It surely is a jewel in Honda’s crown after rolling out class bikes and scooters like Unicorn, Shine, Aviator, Eterno


World’s largest manufacturer of two-wheelers HMSI is a wholly owned subsidiary of Honda Motor Company Ltd., Japan. Dreaming to manufacture two-wheelers of global quality in India, the company also wants to meet and exceed the expectations of Indian customers with outstanding after sales support. And this is one thing, which makes them distinctive. The company’s principle is ‘dedication to supplying products of the highest quality yet at a reasonable price for worldwide customer satisfaction’.The HMSI factory is spread over 52 acres, with a covered area of about 85,815 square metres at Manesar, Gurgaon district of Haryana. The company started its operation from 2001. The initial installed capacity was 1,00,000 scooters per year, which has reached 6,00,000 scooters by the year 2007 and motorcycle capacity was 4,00,000 per annum. HMSI recognizes and respects individual differences. The respect for individual comes from initiative, equality and trust. It is the contribution from each individual in the company that has made the company what it is today and that, which will take it into the future.
Reaching New HeightsHMSI has one manufacturing facility at present, which is in Manesar, Haryana. It doesn’t have any plan to establish another manufacturing plant in near future. “If we go by books then installed production capacity of our plant at IMT Manesar Gurgaon is 1.2 million units. But practically, this capacity can further be scaled up to 1.3-1.4 million units annually through optimizing the Model mix and Productivity Improvements,” says Shinji Aoyama, President and CEO of HMSI. He further adds, “In regards to sales position, we had achieved sales of 9.07 lakh units in the last financial year 2007-08 and we have set a target to cross one million mark in sales in the current financial year.” HMSI broad’s sales projections are that HMSI would be able to reach a sales mark around 2011. So, the company believes that it still has time and only after it reaches closer to full utilization of existing plant, it would take a call for the future plant and expansion.However, the company doesn’t believe in manufacturing newer models everyday. The management believes in brand image. According to them their models of two-wheelers are very popular among the public. On asking about the new variant for customers Aoyama avers, “Our stock remains there at the dealers point only for two-three days, because every model is very well appreciated by customers and there is growing demand, so volume is increasing and brand is slowly growing and that’s what matters. Sometimes too fast expansion of variations does not create good brand image. We want to build goodwill among customer, as customer satisfaction is our first priority; business will follow.”
Cutting-edge Technology“Our fundamental design philosophy seeks to maximize space and comfort for people, while minimizing the space required for mechanical components,” explains Aoyama. With this aim in mind, Honda's R&D activities include product-specific development and fundamental research. Few of the advanced technologies that it has are Combi Break System, HondaMatic Transmission, Fuel Injection System, Idle Stop System, etc.Generally, it is not easy to control a two-wheeler while braking during emergencies and bad road conditions. Combi Break System not only allows easy and simultaneous operation of the front and rear brake but also provides optimal braking performance. The compact, efficient and oil pressure controlled Hondamatic Transmission is the world's first fully automatic transmission system, which delivers a dynamic combination of torque and excellent accelerator response for a constant and superior driving experience. Honda's fuel injection technology is designed to realize ideal combustion, which results in delivering maximum power output, greatly improved fuel efficiency and yet be environment-friendly. Honda has created an advanced Idle Stop System that reduces fuel consumption while totally blocking out toxic exhaust gas and unwanted noise.

It enables the engine to stop automatically for 3 seconds after the vehicle stops moving. And when the throttle is opened, the vehicle engine restarts and takes off smoothly. Customer SatisfactionHMSI has a large number of sales network - 310 dealers and 507 outlets at present. All these outlets are well controlled and well equipped as per norms. They are monitored on regular intervals monthly and quarterly by the company experts. N.K. Rattan, Divisional Head, Marketing, HMSI, tells, “For smaller outlets the monitoring is done quarterly and for bigger outlets is done on monthly basis. We also have a well-built customer service network at all the dealers point. There is also 100% test ride facility available for customers in all dealers point.”

Retaining loyal and satisfied customers is one of the most formidable challenges businesses face. Especially in a wired world where real-time responsiveness and interactivity are being redefined constantly. HMSI has two-way interactive communication with customers ensuring a higher level of service and feedback so that they remain ever satisfied. At Honda, they extend special schemes. Aoyama shares with us, “We have several extended warranty, annual maintenance contract. We have such schemes in which customer with a limited budget can get service of our maintenance of vehicle for a period of 5 years. This is very unique scheme from HMSI and gives an edge over the other players in the market.”
Safety on Roads Enhancing safety on the roads is one of Honda's top priorities. Aoyama feels the importance of safety on roads and says, “We firmly believe that the realization of a comfortable and an enjoyable mobile society depends on the mutual trust that automobile manufacturers like us, share with the consumers and society.” The company uses a three-pronged approach, based on preventing accidents from happening in the first place, minimizing injury in the unlikely event of an accident and our Driving Safety Promotion operations. Honda's safety philosophy emphasizes the development of appropriate technologies for its products, so as to ultimately achieve maximum riding comfort for its customers. By educating the world, Honda is actively involved with driving education across the world for promoting traffic safety. The Honda Driving Simulator and the Honda Riding Simulator are virtual-reality systems and are designed to heighten the user's ability to anticipate and foresee danger. Featuring the latest in macaronis and contents technology, these simulators allow drivers and riders to experience danger while remaining safe.HMSI is not a silent spectator; it participates very actively in making people aware about the safety on roads. “We go to schools to teach students about road traffic rules. By teaching their parents we are taking an initiative. For that, we have our own small bikes, safety drive trainer. Not only this, but we also donate vehicle to ITI for educating them. We have trained ITI schools. We also have donated three-four vehicles to local police of Manesar for patrolling and safety,” utters Aoyama. Developing Green Vehicles According to Shinji Aoyama, Honda’s dream is to pass on the beautiful natural environment to the next generation, and it will continue its environmental conservation activities, meeting the high goals that it has set independently. The company is striving towards developing zero-emission in all the vehicles manufactured by it. To reduce the environmental burden of four-stroke engines, it has developed a unique exhaust air injection system and a programmed fuel injection system, which is currently in use in the HONDA VFR motorcycle. This Honda VFR 800 is to be launched in the current fiscal year only.
Racing Improves the BreedHonda has always played an important role in motor sports, believing it to be the launch pad for technological advancement. Honda has always loved racing, ever since Sochiro Honda took his company into motorcycle competition, sometime in the 1950s. Honda’s engineers have tested themselves on the international stage, proving their technology to be the best in the world. These technologies are tested in the extreme conditions of motorcycle racing, to adapt them for use in vehicles that ply on roads today.In the past, Honda has powered some of the all time great racers, including Redman, Hailwood, Spencer, Gardner, Capirossi and Doohan, to 39 riders’ titles. Even today, some of the greatest motorcycle racers, like Alex Baros, Max Biaggi, Nicky Hayden ride on Honda bikes, at the races.Technologies like these are not just for the racetracks, but are also incorporated in our everyday vehicles. They are first tested, refined and proven under the trying conditions in the races, and then finally adapted in the vehicles, so that two-wheelers like Activa and Dio
Honda's production facilities across the world also actively pursue energy-efficient methods and prevent water pollution by reducing industrial waste. Honda has taken aggressive initiatives to reduce the environmental impact of its manufacturing operations, by implementing its concept of the "Green Factory". “Abolishing hazardous waste in our products such as lead and reduction of Co2 is our prime motive. There are other things on which we heavily concentrate that is recycling of water and recharging groundwater through rainwater harvesting for our usage. Whatever usage of water we have, we get almost 70 per cent through rainwater harvesting,” says Aoyama as he really lookes concerned.As responsible member of society and industry, HMSI recognizes that well being of humans and conservation of earth's environment is important. HMSI got ISO 14001 certification in Dec. 2002, which is committed to achieve, environmental excellence in all its industrial activities. HMSI established its environmental management system following PDCA cycle and is continuously working to make it more effective.
Green Dealer Concept The "Green Dealer Concept" of HMSI is a step further in the direction of conservation of the environment. The "Green Dealer Concept" would not only help in proper and efficient use of resources such as water, electricity, paper, etc. by constantly monitoring and improving the existing systems thus doing lots of cost cutting but also reducing the polluting activities to minimum. Increasing environment awareness amongst the employees and the general public is also a feature of this unique concept. Aoyama tells with utter satisfaction, “We are one company, which has green dealer concept. We have dealers across the country who are actively participating in this. There is no leakage of oil in drainage system. Our company put very expensive equipment for society’s safety. As a responsible company, we provide vehicles, which are environmentally safe.”
Human Resource as a ChallengeThere is one thing, which bothers company – that is attrition. According to Aoyama the current phenomenon of hopping between jobs in India is not good at all for the Indian industrial development. People are looking for different opportunities. They believe that it is better for them. Shifting from company A to B to C can do no good to people. People should concentrate on existing job. Aoyama opines, “At Honda, we do human resource programmes, which educate them about companies philosophy. We are doing our bit but we cannot stop attrition totally. We have 20 per cent attrition rate in our company like any other company.” Having a turnover of Rs. 3000 crores in the current fiscal year, the company is completely committed towards its customers. The management fully understands the importance of being present in the mind of people, so it has decided to spend 2 per cent of its profit on publicity and advertising.In line with Honda's Philosophy, HMSI conducts all its daily activities in pursuit of the three joys that is Joy of selling, Joy of buying and Joy of creating. The Joy of buying is to carry out the necessary steps for satisfying the customer and establish a relationship of mutual trust with thecustomer through the product. The Joy of selling is to provide products of excellent quality and performance. The satisfaction of customer brings the joy of selling. The Joy of creating is to recognize a sense of joy in our customers, suppliers and dealers thereby, which becomes a source for joy of working.After an all out effort of manufacturing world-class two-wheelers, at the end of the day HMSI gets satisfaction in customers’ contentment. It has always been company’s prime objective to give the best to its customers and leave an environment-friendly atmosphere for the future generations. And it is fulfilling its both the objectives right now.

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