Honda Vietnam Final

Topics: Motorcycle, Quality control, Honda Pages: 14 (3328 words) Published: March 9, 2015
1.1. Introduction of the organization2
1.2. Organization’s Customers3
1.3. Operation objectives4
2.1.Analyses of transformation process5
2.2. Analyses of transformed resources7
2.3. Analyses of transforming resources8
2.4. Analyses of value-added output10

1.1. Introduction of the organization
Honda Vietnam was established in 1996 and started operation after one year. Currently, the company has two motorcycle manufacturing factories and one car manufacturing factory. Within this report’s scope, Honda Vietnam, the motorcycle manufacturer, is discussed in details. The first factory was opened in 1998 and the second in 2008 in Vinh Phuc province, with a total capacity of 1.5 million motorbikes a year and total workforce of 4,935 workers. If the first factory was an evidence of a serious and long – term investment of Honda in Vietnam, the second factory is a great effort of Honda Vietnam to prove that it focuses a lot of attention to the environmental and social issues, which is the harmonious combination of three natural sources of energy: Wind, Light and Water to generate environmental and friendly technology. Recently, the third plant was officially inaugurated in Ha Nam province, increasing the total capacity to over 2 million motorbikes a year. There is no doubt that Honda Vietnam has had the greatest contribution to the motorcycle industry of Vietnam, in meeting a variety of demands and needs of the customers. Honda Vietnam is proud to become one of the biggest motorcycle manufacturers in the Asian region as well as in the globe (Honda Vietnam, 2014) From the perspective of operation management, managers should take the highest responsibility in quality control and quality assurance of the products, making sure that all the motorbikes produced satisfy the customers’ needs to the optimal level. 1.2. Organization’s Customers

According to Slack et al. (2013), the customers of an organization include internal and external customers. An internal customer is defined as a process or an individual belonging to an operation which is the customer of other internal process or individuals. In the meantime, an external customer operates in a free market (Ibid) which could be the company’s wholesalers, retailers and individual customers. The authors stated that in order to satisfy the external customers, the internal customers must be satisfied as well. Thus, treating both the external and internal customers with the same level of consideration and care will improve the effectiveness of the whole operation (Ibid). In accordance with the theory of Slack, both the people in Honda Vietnam and the consumers are the internal and external customers respectively. Different customers will specifically have different expectations towards the company’s outputs, which are defined as competitive factors of the products. Slack et al. (2013) divide these factors into two types: order winning and qualifying factors. The order winning criteria directly and considerably contribute to the victory of the product in the market, as such the customers with order – winning preference will enjoy a high quality, fastest product, and extremely reliable and flexible product. Meanwhile, the qualifying criteria mark the boundary in which the product must at least equalize those criteria to be considered by the customers, for instance a workable product with basic functions, which is affordable and fast enough. In line with this concept by Slack et al. (2013), the customer order-winning criteria of Honda Vietnam will aim at the most expensive motorcycles with most advanced technology and modern motorcycles such as SH 125 cc, SH 150 cc, PCX, and Air blade. The customer qualifying criteria will pay more attention to the basic and old style (workable competition, low cost) of...

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