Harley Davidson

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  • 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

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

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