Doubling Production for Honda
Doubling Production to Meet Customer Demand Followed by
Flawless Execution
About the Customer
Honda's first overseas subsidiary was established in 1959. The company has invested more than $10.6 billion in its North America operations, including 16 major manufacturing facilities employing more than 34,000 associates, to produce Honda and Acura automobiles, motorcycles, all-terrain vehicles, personal watercraft, lawn mowers, general-purpose engines, and other power equipment products. ATC Drivetrain has been a valued supplier to Honda since 2002 and is a three-time recipient of the Honda Supplier Award.
Customer Need
ATC Drivetrain began a partnership with Honda as a new customer in 2002 and our production rate grew steadily keeping pace with Honda’s year-over-year growth in North American market share. In 2004, Honda began experiencing a significant increase in their warranty rate and implemented a customer service initiative to handle customer complaints quickly and effectively; this is the Honda way. In order to achieve this aggressive customer service initiative, Honda asked ATC Drivetrain to quickly double our production.
How ATC Drivetrain Delivered
In response to Honda’s needs, ATC Drivetrain’s team of engineers and lean production specialists designed and implemented a second production line designed for maximum output. ATC Drivetrain also hired and trained a significant number of production associates. In total, ATC Drivetrain invested $4.1 million to achieve a 100% increase in production in a record time of three and one-half months without sacrificing quality or delivery.
Results
Honda was able to provide a quick and effective service solution to owners of Honda and Acura vehicles helping to maintain Honda’s focus on increasing lifetime owner loyalty. In addition, ATC Drivetrain funneled the necessary root cause analysis to Honda’s engineers, allowing the proper countermeasures to be designed and incorporated into new transmission platforms thereby effectively solving the issues that caused the warranty bubble.