• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Harley Davidson
 

Harley Davidson

on

  • 2,119 views

 

Statistics

Views

Total Views
2,119
Views on SlideShare
2,118
Embed Views
1

Actions

Likes
1
Downloads
0
Comments
0

1 Embed 1

http://answersforharleydavidson.jusst.us 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • anirudh
  • anirudh
  • anirudh
  • anirudh
  • anirudh
  • Ankita
  • Ankita
  • Rakesh Japanese had learned Total Quality Management from the Americans, Edwards Deming and Joseph Juran. The new business concept outlined by these two pioneers was a new management approach that, interestingly enough, had been rejected by American manufacturers. As a result, they offered this approach to Japanese manufactures that were eager to learn and implement it.
  • Rakesh Japanese had learned Total Quality Management from the Americans, Edwards Deming and Joseph Juran. The new business concept outlined by these two pioneers was a new management approach that, interestingly enough, had been rejected by American manufacturers. As a result, they offered this approach to Japanese manufactures that were eager to learn and implement it.
  • Rakesh Japanese had learned Total Quality Management from the Americans, Edwards Deming and Joseph Juran. The new business concept outlined by these two pioneers was a new management approach that, interestingly enough, had been rejected by American manufacturers. As a result, they offered this approach to Japanese manufactures that were eager to learn and implement it.
  • khem
  • khem
  • khem
  • sripat The main problem concerned with HD were: losing market share due to Cost and Quality.
  • sripat
  • sripat The main problem concerned with HD were: losing market share due to Cost and Quality.
  • hemant
  • hemant

Harley Davidson Harley Davidson Presentation Transcript

  • Group 6 Anirudh Kanodia Ankita Sehjpal Khem Singh Hemant Reddy Rakesh Ranjan Shripat Bagla
  • Contents
    • 1 st Part
      • History Speaks
      • Challenges
      • Bounce Back
    • 2 nd Part
      • Issue Box
        • How Honda was able to manufacture better quality bikes at lower cost ?
        • Quality assurance and Quality circles ? Why it was unsuccessful ?
        • Is it right to focus only on quality improvement by overlooking cost considerations?
        • Up to what extent has Harley-Davidson been Successful in the international and domestic US market compared to Honda according to you?
        • Is the EIG a unique innovation of Harley-Davidson?
      • Q&A
  • History Speaks
    • 1903
      • Harley Davidson founded in Milwaukee by William Harley and Andrew Davidson
      • 1920
      • Harley-Davidson was the largest motorcycle manufacturer in the world
      • 1929
      • One of the few companies to survive The Great Depression
      • 1963
      • Has a solid 70% market share in U.S
    • 1965 - 1983
      • Honda lightweight cycles had successfully penetrate US market, having 44% of the market by 1983
    • 1973 - 1983
      • Harley's market share went from 77.5% to 23.3% in 1983
      • 1987
      • Listed on NYSE
  • Challenges
    • 1. Refuse to change from (a) to (b)
  • Challenges contd.
    • 2) High in parts inventory
      • 3) Down in quality and reduce productivity
                                           
  • Challenges contd.
    • Corporate management focused mostly on short term returns.
    • Belief in quick fixes for problems, such as throwing in computers and state-of-the-art machinery to improve productivity.
    • High break-even point(53,000 bikes) that left the company vulnerable to unpredictable market fluctuations.
    • Management that woke up too late to the threat of foreign competition because of the "it can't happen here" syndrome .
  • Bounce Back
        • Learned about Japanese plants and Honda
        • Implemented the production improvement through Just-in-time (JIT), Materials-as-needed (MAN) & Quality Circles (QC)
        • Educate the middle management and front line people in turning the plant to profit center by reducing defect products and increase productivity.
        • Participated and learned about customers concerns and complaints at Harley Owners Group (HOG) rallies & creates changes
  • Bounce Back
        • Harley Owners Group (HOGs) is much more than just an organization. It’s 1 million people around the world united by a common passion: making the Harley-Davidson dream a way of life
        • Recreated the public image with high quality licensed goods (i.e. leather jackets, jewelry, accessories, badges, caps etc.)
  • How Honda was able to manufacture better quality bikes at lower cost ?
    • Initial thought:
    • Cheap Japanese labor
    • Huge advertising budget
    • Dumping practices of Honda
    • Real reasons for Honda’s success:
    • Kaizen
    • JIT
    • Extensive use of statistics to measure quality
    • High Inventory turnover
    • Kaizen:
    • practices that focus upon continuous improvement of processes in manufacturing, business processes, and management.
    • The five main elements of kaizen
    • * Teamwork
    • * Personal discipline
    • * Improved morale
    • * Quality circles
    • * Suggestions for improvement
    • JIT
        • An inventory strategy that strives to improve a business's return on investment by reducing in process inventory and associated carrying costs.
    • Main benefits of JIT include:
    • Reduced setup time.
    • The flow of goods improves.
    • Employees with multiple skills are used more efficiently.
    • Production scheduling and work hour consistency synchronized with demand.
    • Increased emphasis on supplier relationships.
  • Quality Circles and Quality assurance? Why it was unsuccessful ?
        • Quality Circles (QCs) :- a small group of worker-management committees who meet once a week, on a scheduled basis.
          • to talk about production problems
          • plans to improve productivity and quality
          • resolve job-related gripes on both sides.
        • They then propose solutions and make a sincere attempt to implement real change.
        • QCs helps to increase employee involvement in quality goals and to improve communication between management and workers.
  • Quality Assurance (QA)
        • systematic monitoring and evaluation of the various aspects of a project, service or facility
        • maximizes the probability that minimum standards of quality are being attained
        • QA cannot absolutely guarantee the production of quality products.
  • Why it was unsuccessful ?
        • The main reasons for quality circle failure includes:
        • Lack of Top-management support
        • Quality circle members' commitment
        • Problem-solving skills
        • Co-operation from middle and first-line management.
        • Low Quality circle members' turnover
        • The nature of the task
  • Is it right to focus only on quality improvement by overlooking cost considerations?
        • Cost hasn't seemed to impact HD's business momentum in large part due to the success of their marketing strategy and brand image.
        • Quality was the front where it needed its most concentration because
        • sales dropped drastically due to low quality
        • competitors were exploiting this weakness by providing low cost high quality motorbikes
  • Harley-Davidson’s Success in the international and domestic US market as compared to Honda
        • Reasons that contributed to the success of HD are:
        • Total Quality Management (TQM) practices
        • Lobbied Washington to temporarily raise import tariffs from 4 to 40 percent on non-US motorcycles, and
        • Began their well-known and highly embraced branding and marketing strategy.
    • Harley-Davidson’s Has Been A Great Success Story.
    • Today, Harley-Davidson motorcycles are in demand not just in US but throughout the world.
    • Twenty-two percent of motorcycles produced in the New york, PA final assembly plant are produced for export, and much of Harley's growth is due to exports
    • Harleys never competed with Honda head-on. Their marketing strategy has always been focused on selling a lifestyle instead of a mere motorcycle.
    • Honda on the other hand has the widest product range of all time. Their products have been attracting masses because of their affordability and durability
  • Is EIG a unique innovation of Harley Davidson
  • Is EIG a unique innovation of Harley Davidson