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 HMA Assembly Improvement assignment (EA) 2004 Production Line improvement support (3 month assignment) Current Roles and in response to 05 Ody Launch. Responsibilities 2002 ‐ 2004 HMA Parts Quality (EA) Supplier Quality Engineer, Parts Quality ‐ Mass Production Honda Manufacturing of and Market Responsibility Alabama LLC Before Honda The Torrington Company (IR) supplier to GM/Ford/ Chrysler Division Manager Engineer & Department Manager – Bearing Industry Worked in engineering and manufacturing management for Engine Purchasing Bearings for OEM automakers. Dept Mngr ‐ Turning, Grinding, New Model Assembly 80+ associates. Supply Chain Parts Quality & MRO Industrial Engineering degree, Auburn University
Honda North American Operations HMIN HACI HCM Honda HTM Aero HAM HPE HSC HMA HDM HPPG
Honda Manufacturing of Alabama Located in Lincoln, Alabama (Talladega County) Volkswagen Chattanooga Toyota Mississippi HMA is ~40 miles east of Birmingham, AL Kia HMA is ~109 miles west Georgia of Atlanta, GA Honda Manufacturing HPPG (Honda Precision Parts of GA) of Alabama Tallapoosa, GA - Transmissions Odyssey, Pilot, Ridgeline, & Acura MDX
HMA Production Milestones & Flexible Manufacturing 3 Millionth (2013) First HMA Odyssey transferred from HCM 3 rd Gen Pilot First HMA Pilot transferred from HCM (2015) Acura MDX 2005 Odyssey was HMA’s first full model change “UM” (2013) 2009 Pilot was HMA’s second full model change Ridgeline transferred from HCM 4th ‐ gen Odyssey Accord V ‐ 6 Sedan shared production between HMA & MAP (2010) Accord V6 2011 Odyssey was HMA’s third full (2009) model change May, 2013 – HMA celebrates production of the all ‐ new 2014 Ridgeline truck Acura MDX (2009) Dec. 2013 – 3 millionth 2nd ‐ gen Pilot May 2015 – (2008) New Pilot 3rd ‐ gen Odyssey +4,000 Associates (Fall 2004) Line 2 and Pilot SUV (Spring 2004) 3,000 Associates 2nd ‐ gen Odyssey 1,200 Associates from Canada Plant 2 (Nov 2001)
Honda Manufacturing of Alabama Overview • 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 • 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 and its suppliers accounted for $6.8 billion in economic impact to Alabama in 2014, according to a new report. (Dec 1, 2015)
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 of 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. Hybrid / Fuel Cells • Bring Innovative Products and Ideas to your customer that improve vehicle safety, quality, performance and value.
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 “Promote an active Culture of Safety and – Southern Supply base build it into your DNA” ‐ Dr. Mark Rosekind characteristics and challenges NHTSA Administrator – Leadership & Culture
• 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.
Critical Control Points & Process Control Drawing Safety Ranking By Customer Training of Critical Control points to ALL Parties that Influence the manufacturing. Training Scope: CCP PFMEA PQCT Operation Standards New Model Critical Control Point Mgmt: Identify Assess Risk Set Check Item/Method Train
Process Control Development FTA D/PFMEA PQCT SOP New Model ‐ Critical Control Point Management Is your company taking these critical New Model steps for Safety related parts?
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
Why Company Culture (DNA) Safety Transformation Safety Transformation – to change not just o change not just If you don’t create & drive the Quality but Mindset. Mindset. Quality but Culture in Your Organization, then it will create Itself. – Dr. R – D Rosekind Your company culture defines the way in which your organization interacts with one another and how the team interacts with the outside world, specifically your customers and suppliers. Did you walk by un ‐ labeled Nonconforming Product Yesterday? Your Company Culture is more valuable than all your assets.
Why? Why is Leadership Supplier DNA Important? Leadership 1 When a company loses it’s Good Top Mgmt trust and ownership – communication to the associates – Culture… then instability occurs. Improved processes Loss of Culture Most likely occurs with Daily Management 2 Stronger accountability and Leadership Turnover application of PDCA Year over Year Quality Trend of a Company who Skilled Associates 3 has had Leadership Instability and Culture Crisis Development & Empowerment of Associate (Front Line Leadership, Technical, Prob Solving) Systems 4 Improved Strategic planning for daily operations & system improvements (1) Strong Leadership can grow and maintain a good Company Culture.
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