Editorial Honda Overview of Performance •Assurance

Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

Quality

120%
Aiming for 120% product quality

Material Issues
● Assuring outstanding product quality

Honda SUSTAINABILITY REPORT 2018 65

102-15,103-1,103-2,103-3

Editorial Honda Overview of Performance •Assurance

Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Basic Approach

Environment ････････････････ 36
Aiming to Bring Reassurance and Satisfaction Offering a New Level of Outstanding Quality
Safety ･････････････････････ 56
to Customers Over the years, Honda has implemented different activities aimed at realizing products
that offer a new level of outstanding quality.
Quality ･････････････････････ 65 “We have to aim for 120% product quality. If 99% of the products we make are perfect,
▲

Meanwhile, the industry is heading toward an unprecedented turning point concerning

that would seem like a pretty good record. However, the customers who become
Basic Approach response to the environment, safety and intelligence.
the owners of the remaining 1% will surely consider their products 100% defective.
Honda seeks to create new value through open innovation, with examples including
Global Management It is unacceptable that even one customer in a thousand – even one customer in ten
motorization of the powertrain, accelerating introduction of driver assistance technology
thousand – should receive a defective product. That’s why we have to aim for 120%.”
Quality Initiatives to eliminate traffic accidents and teaming up with other companies, including from other
These words of founder Soichiro Honda define the company’s fundamental approach to
industries, to challenge new forms of mobility that incorporate the Internet of Things (IoT).
Third-Party Evaluation quality, or more specifically, what it means to strive to be a company society wants to
Moving ahead, Honda aims to reduce trouble at all points of customer contact
exist. Determined to meet or exceed the expectations of customers, Honda is taking new
alongside evolution in mobility and living in addition to ensuring the utmost quality in
Human Resources ･･･････････ 79 initiatives to reach high product quality standards.
products and services provided to customers. The pursuit of quality in each domain
To strengthen customer trust by offering products founded on safety and offering a
allows the evolution of activities that realize a new level of outstanding quality.
new level of outstanding quality, Honda has created a quality cycle that continuously
Supply Chain ････････････････ 96 enhances quality at every stage encompassing design, development, production, sales
and after-sales service.
In order to realize the basic principles of “Respect for the Individual” and “The Three
Joys” (the joy of buying, the joy of selling, the joy of creating), Honda has stated that being
the number one in customer satisfaction in all points of contact is a primary objective of
activities. Honda works in partnership with dealers to increase customer satisfaction to
allow them to continue handling products with confidence at every stage, from purchase
to after-sales service, ensuring that a high level of satisfaction is provided to customers
at all times.

quality Honda SUSTAINABILITY REPORT 2018 66

 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Global Management

Environment ････････････････ 36
Quality Management System and Global Meeting Structure
Safety ･････････････････････ 56
Quality Enhancement Promotion System In order to ensure the strengthening of quality under this quality management
system, Honda sets challenges based on quality targets established in company-wide
Quality ･････････････････････ 65 Global Honda Quality Standard (G-HQS) Aimed at Increasing Quality
▲

policy, which are then modified to reflect the challenges found in different regions
Basic Approach of Honda Brand Products with countermeasures formulated for them. The management of this initiative and
information-sharing are conducted regularly at the Global Quality-related Meetings,
Global Management which include the Global Automobile Quality Meeting, chaired by the Chief Quality Officer
As Honda’s production and parts and materials sourcing expand globally, a shared
Quality Initiatives global quality management system is essential to ensure that all Honda facilities (CQO) and attended by persons responsible for departments involved in quality from the
continue to generate 120% product quality. G-HQS established in April 2005 serves as headquarters and regions. Each of the Honda businesses, i.e., Automobile, Motorcycle
Third-Party Evaluation
the foundation of this. and Power Products, holds its own Global Quality-related Meetings.
G-HQS is a set of fundamental standards supporting quality assurance and In the area of customer service, we have devised an action policy focused on each
Human Resources ･･･････････ 79 improvement activities in all domains based on Honda’s Quality Cycle. The aim is to customer so that we can create value through service and provide a feeling of joy
increase the quality of Honda brand products manufactured and sold around the world. in continuing to use Honda products. Persons responsible for departments involved
Supply Chain ････････････････ 96 Each site complies with G-HQS to enable a uniform quality assurance system across the in quality from the headquarters and regions hold joint Global Aftersales Business
board and contribute to quality assurance not only in production activities but also in Meetings to share this policy and measures globally. Productive measures and initiatives
logistics and services. shared at the meetings are set as global benchmark levels to enable the provision of
Honda separates functions such as design/development, manufacturing, sales/service higher quality services on-site.
and quality into global and regional, and clearly defines roles and responsibilities
when conducting activities to enhance and improve quality in accordance with Honda’s Global meeting structure
Quality Cycle. With G-HQS, goals and regulations concerning quality assurance activities Meeting structure Business Meeting name Times/year
for each function are stipulated globally. The means for realizing these goals and
Motorcycle Global Production Strategy Conference 2
requirements are codified for each region in line with local characteristics. These means
are conceived of and codified by each region independently, which enhances awareness Global Automobile Quality Meeting 3
of quality improvement and leads to the personal growth of local quality managers. Quality related Automobile Global Chief Inspecting Engineer (CIE)
1
Based on ISO9001* criteria to which Honda production facilities in Japan and around the Meeting
world have been or are to be certified, G-HQS represents the accumulation of knowledge Power Products Power Product CIE Meeting 1
Honda has gathered independently in producing quality products and preventing
Motorcycle
previous issues from recurring. It will continue to conform to ISO certification standards.
Aftersales
As of the end of March 2018, 61 of the 67 Honda facilities had acquired ISO9001 certification. Automobile Global Aftersales Business Meeting 2
business
Power Products

* An international quality control and quality

assurance standard set by the International
Organization for Standardization (ISO) Global Automobile Quality Meeting Power Product CIE Meeting

quality Honda SUSTAINABILITY REPORT 2018 67

 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Global Management

Environment ････････････････ 36
Quality Management Education Training curricula content

Safety ･････････････････････ 56 Category Course name Course content Period

Honda offers quality management training based on in-house qualifications and the level
QC Junior Targets associates six months to one year after
of quality control responsibilities with the aim of improving associates’ quality assurance (QC J) joining Honda to learn the basics of quality control 1 day
Quality ･････････････････････ 65
▲

skills. Course techniques.

Basic
Basic Approach In Japan, Honda offers a training curriculum with four courses divided into basic Targets associates engaged in production
training QC Foreman
training and specialized training. As part of this, the Honda QC Basic Course (HBC) is and quality duties to learn the quality control Total of
Global Management (QC F)
open not only to Honda associates but also to suppliers and focuses on training experts techniques and approaches required for quality 2 days
Course
in all aspects of Honda quality management. assurance activities.
Quality Initiatives
Outside Japan, the QC Junior (QC J) Course and the QC Foreman (QC F) Course are Statistical Targets associates whose principal responsibility
Third-Party Evaluation Quality is quality control and quality improvement Total of
offered as basic training. Control (SQC) activities to learn professional quality control 2 days
Specialized Course techniques and approaches.
Human Resources ･･･････････ 79 HBC flow training Targets associates who are responsible for the
Trainees Honda QC
core of quality control activities to learn skills that Total of
Basic
allow them to resolve difficult problems/issues 22 days
Supply Chain ････････････････ 96 Course (HBC)
with the aim of becoming quality control experts.
*SQC Course and HBC are held in Japan.
Themes that need to be addressed in trainees’ own departments

HBC
1. Coursework

2. Session to review how to address issues

3. SQC implementation in trainees’ own departments aimed at resolving themes/issues

Repeat the cycle of steps (2) and (3) above

Cultivates quality control experts with practical skills by

teaching trainees to resolve issues in their own departments Providing education on quality control

Best Quality Award

The CQO gave out awards for themes that generate outstanding results through quality-
related measures based on policy management with the aim of elevating quality
awareness. Divisions in line for recognition include development, production, production
technology, purchasing, certification, quality, parts/service and IT. Awards for divisions
overseas were introduced in 2012, with the CQO presenting awards on-site. Over the
six-year period from FY2013 to FY2018, a total of 49 sites were visited around the world
enabling direct communication with associates. The CQO visits sites around the world to give awards face-to-face.

quality Honda SUSTAINABILITY REPORT 2018 68

 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Quality Initiatives

Environment ････････････････ 36
Honda’s Quality Cycle
Safety ･････････････････････ 56
Honda has created the Honda Quality Cycle that continuously enhances quality at every
stage, encompassing design, development, production, sales and after-sales service in
Quality ･････････････････････ 65
▲

order to realize products offering a new level of outstanding quality.

Basic Approach This initiative aims to achieve the highest quality through the creation of drawings
designed to facilitate manufacturing, as well as develop manufacturing control
Global Management techniques that limit process variability, by applying and reflecting design and
Quality Initiatives development expertise at the production preparation and production (mass-production)
stages.
Third-Party Evaluation

Human Resources ･･･････････ 79

Honda’s Quality Cycle
I. Design and Development
Supply Chain ････････････････ 96 Implement quality assurance from
the drawing stage by utilizing design
and manufacturing expertise to
create drawings designed to facilitate
manufacturing.

V. Quality Information Collection/ II. Production Preparation

Analysis and Quality Improvement Prepare quality assurance in production
Quality information from customers processes by building manufacturing
and markets throughout the world controls that limit process variability.
is collected and analyzed with
improvements quickly made to quality
(market quality improvement system).
Global Honda
Quality Standard
(G-HQS)
IV. Sales and Services III. Production
Market quality issues after sales In addition to using drawings designed
are dealt with by dealerships, which to facilitate manufacturing and
collect quality information from implementing manufacturing controls
customers in a timely manner. that limit process variability, conduct
rigorous inspections of parts and
vehicles, and take steps to ensure no
damage occurs during transport.

quality Honda SUSTAINABILITY REPORT 2018 69

 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Quality Initiatives

Environment ････････････････ 36
Database
Design/Development and Production Processes that create new levels of
enhanced quality (automobiles) Database storing quality-related
Safety ･････････････････････ 56
(Mass Production) data that Honda has accumulated
over many years, such as design
and manufacturing expertise
Quality ･････････････････････ 65 To ensure high quality, Honda conducts comprehensive quality assurance activities from
▲

the dual perspectives of design and manufacturing. For example, drawings for objects
Basic Approach that will be machine processed include finished dimensions. Even when the same
Global Management worker uses the same materials, equipment and procedures to produce an item to the
dimensions specified on the relevant drawings as part of a given production process, R&D Production
Quality Initiatives
there are inevitably small variations in the item’s finished dimensions. Quality assurance departments Communication departments
Third-Party Evaluation To address this fact, R&D departments consider not only function and performance concept Product function / Process assurance
but also the ease of manufacture and minimization of variations when designing performance concepts concept

Human Resources ･･･････････ 79 drawings. For their part, production departments implement manufacturing controls to
keep variability within applicable standards based on drawings and develop production
processes so that all workers can continue to achieve a consistent level of quality.
Supply Chain ････････････････ 96

Ⅰ. Design/Development Ⅰ. Design/
Assuring Quality through Drawings Development
Assuring quality
through drawings
Honda’s R&D departments create drawings that take ease of manufacture into Drawings design that takes ease Establishing manufacturing
consideration in order to limit process variability and prevent human error during the of manufacture into consideration control items and criteria
manufacturing process. These drawings serve as the basis of our quality assurance efforts.
Specifically, engineers utilize a database of measures and techniques previously used
to prevent market quality issues and other information as they communicate closely
with manufacturing departments during the initial development stage. Product function,
performance and quality assurance initiatives are committed to writing and are shared
to ensure efforts are coordinated with production departments’ process assurance
Assuring long-term
activities and to coordinate quality assurance initiatives. Ⅱ. Production reliability through
Preparation Assuring quality through aggressive durability
production processes testing
Ⅱ. Production Preparation
Assuring
Developing processes parts
to limit variability quality
through
Assuring Quality through Production Processes supplier
audits
Besides design drawings, Honda’s production departments establish manufacturing
control items and criteria for each part, process and operation to prevent product
quality issues. Engineers use these manufacturing control items and criteria to verify Ⅲ. Production Inspecting
manufacturing variability as they work to prevent quality issues. Furthermore, Honda (mass production)
electronic control
systems
develops processes that limit variability by soliciting suggestions for enhancement from Products
the sites where work is actually performed and determining manufacturing control
methods for each process.

quality Honda SUSTAINABILITY REPORT 2018 70

 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Quality Initiatives

Environment ････････････････ 36
Assuring Parts Quality through Supplier Audits Ⅲ. Production (Mass Production)
Safety ･････････････････････ 56
Assuring the quality of procured parts is an important element in delivering high-quality Using Line End Tester (LET) System to
products. Inspect Electronic Control Systems
Quality ･････････････････････ 65
▲

Honda visits its suppliers’ manufacturing facilities to conduct quality audits based on
Basic Approach the “Three Reality Principle,” which emphasizes “going to the actual place,” “knowing the
Use of electronic control systems in vehicles has grown dramatically in recent years as
actual situation” and “being realistic.”
Global Management part of an effort to achieve more environmentally friendly designs and improve driver
These audit activities are conducted for both the production preparation and mass-
and passenger convenience and comfort. This has created a need for efficient inspection
Quality Initiatives production stages of supplier operations. Experts in the development and production
methods to assure the quality of these components.
of individual parts visit manufacturing facilities and conduct audits of suppliers’ quality
Third-Party Evaluation To this end, Honda has installed Line End Tester (LET), an inspection and diagnostic
systems and their implementation.
system developed in-house, at production plants in Japan and overseas.
Honda then works to improve part quality through activities that emphasize
Human Resources ･･･････････ 79 Although the LET system was initially deployed to perform diagnostics of emissions
communication with suppliers, for example, by sharing audit results and cooperating to
cleaning systems and parts in order to comply with U.S. emissions regulations, Honda
identify opportunities for quality improvement.
extended the capabilities of the device to accommodate the recent evolution of electronic
Supply Chain ････････････････ 96 control systems, allowing its use in shipping quality inspections of all electronic
control systems, from switches and instruments to air conditioner, audio, engine and
Assuring Long-Term Reliability through Rigorous Durability Testing transmission operations. Thanks to these innovations, inspections that have traditionally
depended on the human senses of smell, sight and hearing can now be performed
Honda subjects new and redesigned models to a rigorous regimen of long-distance quantitatively through communications with electronic control components, dramatically
durability testing before beginning mass production to verify that there are no quality increasing the precision and efficiency with which inspections can be conducted.
issues. Honda is continuing to quantify shipping quality assurance for electronic control
Honda also disassembles vehicles used in the test drives into every single part and systems by working to implement further enhancements in the precision and efficiency
verifies that there are no quality issues through a process consisting of several thousand of sensory inspections.
checks. By accumulating data on the issues discovered through these test drives and
detailed inspections as well as associated countermeasures, the Company is able to
ensure a high level of quality and reliability.

Verification of parts following durability testing Inspection using LET system

quality Honda SUSTAINABILITY REPORT 2018 71

 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Quality Initiatives

Environment ････････････････ 36
Ⅳ. Sales and Service and inquiries from consumer advocacy organizations.
The center receives feedback in the form of customer questions, suggestions, requests
Safety ･････････････････････ 56 and complaints 365 days a year, and during FY2018 it processed 239,681 inquiries. To
Honda has established Customer First Operations to realize optimal service operations
in markets worldwide. The division has set the key objective of being “No.1 in customer ensure that this valuable information is put to good use in Honda’s operations, the facility
Quality ･････････････････････ 65 shares it in a timely manner with the company’s R&D, manufacturing, service and sales
▲

satisfaction in all points of contact” based on a “customer-first” policy.

“No.1 in customer satisfaction in all points of contact” refers to the creation of an departments in compliance with laws and regulations as well as Honda’s own policies
Basic Approach
environment in which customers feel satisfied with Honda in each and every situation concerning the handling of personal information.
Global Management they come into contact with the Company. In addition to fulfilling customer expectations
Quality Initiatives built up through past experience and information, the division aims to be No.1 in
customer satisfaction by providing exciting experiences that exceed expectations.
Third-Party Evaluation To attain this goal, Customer First Operations will implement three activities, which
are realizing a stress-free time for customers, creating new services and expanding
Human Resources ･･･････････ 79 businesses that support this platform. They are implementing basic activities to protect
the customer so that regional dealers – Honda’s point of contact with customers – can
address customer satisfaction enhancement more effectively and efficiently.
Supply Chain ････････････････ 96

Honda Total Care

Honda is providing Honda Total Care in Japan as a membership service comprehensively

supporting automobile lifestyles for car users and providing a sense of security.
Members can access information that is useful for car maintenance and management
Sharing customer feedback during training at Kumamoto Factory
and make appointments for inspections via a dedicated Honda Total Care membership
website. In addition, the newly established Honda Total Care Emergency Support Center
is accessible with the touch of a button in case of an emergency as a part of the system
that enhances customer convenience. Customer Satisfaction Survey
The Honda Total Care Emergency Support Center is a one-stop contact point for
the members in trouble such as a road collision or vehicle breakdown. This service Honda conducts a survey around the world on customer satisfaction related to service
thereby relieves members from the burden and confusion of making various contacts operations for customers who have received after-sales service from a dealer. In
to insurance companies and car dealers. The Center is in service 24 hours a day, seven FY2018, the survey was conducted in 26 countries, including Japan and nations in North
days a week, and it makes smooth arrangements for roadside assistance for members America, South America, Europe, Asia and Oceania, Africa and the Middle East. The
in need and provides support for car operating instructions, among other services. survey method involved a design enabling minute measurements of satisfaction for
Honda has also entered into a business alliance with the Japan Automobile Federation each part of the service process at a dealer, with the survey findings used to provide
(JAF), a first in the automotive industry, to provide the industry’s most expansive*1 guidelines for each dealer. While comparing these guidelines with quality-related
roadside service as an optional service. initiatives at dealers, activities are being undertaken toward better service quality at all
Honda aims to ensure the industry’s highest level of quality in customer response by points of customer contact by implementing a plan-do-check-act (PDCA) cycle.
strengthening the relationships with customers through these services. In addition, once a year we conduct a survey comparing Honda with other
manufacturers and brands that are the benchmarks in each country, with the results
Customer Relations Center used as a reference as we work to maintain and improve customer satisfaction at an
industry-leading level. In FY2018, results exceeded benchmarks in 15 countries*2.
The Customer Relations Center in Japan has a very straightforward slogan: “For the
customer.” Its mission is to handle inquiries from Honda customers politely, clearly and
quickly, delivering the same high quality in Honda communications as is found in Honda
*1 Survey by Honda; as of December 2017
*2 Internal survey by Honda; as of March 2018 products. The center also responds to survey requests from the Japanese government

quality Honda SUSTAINABILITY REPORT 2018 72

 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Quality Initiatives

Environment ････････････････ 36
Ⅴ. Quality Information Collection/ Trial of Prediction system
Safety ･････････････････････ 56
Analysis and Quality Improvement Honda believes in the necessity of a system to provide peace of mind to customers in
preparation for new environmental automobiles such as fuel cell and electric vehicles.
Quality ･････････････････････ 65 Honda has established a Quality Center to bring together the various components of
▲

With the system, automobile information is sent to Honda’s data center using
our organization concerned with product market quality information to enhance the
Basic Approach telematics technology and analyzed. Potential warning signs are identified from the
functions of “preventing quality issues” and “quickly detecting and resolving quality
result prior to any trouble occurring as a precautionary measure for customers.
Global Management issues when they occur” on a global scale. The facility gathers quality-related data from
Honda will continue developing the system to provide further peace of mind to
dealers in Japan and overseas through service departments and customer consultation
Quality Initiatives customers.
centers. Measures and policies for preventing quality issues are then developed based
Third-Party Evaluation on the issues identified from this data and provided as feedback to design, production
Image of the
and the design/production sections for suppliers (parts procurement), among others.
prediction system
Human Resources ･･･････････ 79 From FY2017, Honda has undertaken restructuring of its organization that includes
the integration of service sections and the quality assurance section of Automobile Monitor and analyze
Operations to form Customer First Operations, thereby establishing a structure that
Supply Chain ････････････････ 96 enhances the link between service and quality assurance and further strengthens the
flow of customer feedback.
When a quality issue does occur, Honda moves quickly to resolve it, for example, by
working closely with R&D and production departments to investigate and address the
cause, assisting affected customers and taking action to prevent a recurrence. Honda’s data center

Market quality enhancement system (automobiles)

Overseas Japan
Customers Customers Customers
Replies
Inquiries Replies Inquiries Replies
Inquiries Replies
Overseas dealers Dealers in Japan (primary)

Reports Feedback Honda Reports Feedback Contacts

Quality Innovation Center Tochigi

Global departments Domestic service
departments

Overseas service quality Global service Domestic service Customer Relations

departments quality departments quality departments Center

Quality assurance
departments

Quality analysis
Overseas Overseas departments
production development Production Development Suppliers
departments departments departments departments

quality Honda SUSTAINABILITY REPORT 2018 73

 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Quality Initiatives

Environment ････････････････ 36
Quality Innovation Center Tochigi Quality Improvement Operation Process
Safety ･････････････････････ 56
The Center brings all the organizational components necessary to collate product quality Quality enhancement operations at Quality Innovation Center Tochigi, Japan, consist of
data, analyze issues, consider countermeasures and provide quick and precise feedback pulling together market quality data and sharing information about collected parts and
Quality ･････････････････････ 65
▲

to development and production departments together into a single facility. market quality issues. Personnel analyze collected parts, investigate causes and develop
Basic Approach In particular, locating quality and service departments in a single facility allows for countermeasures and improvements in a timely manner.
effective analysis and development of countermeasures thanks to the ability to share Specialized teams with extensive product knowledge are able to obtain detailed data
Global Management information quickly. using a range of analytical equipment. The operational process is configured to facilitate
Quality Initiatives objective and appropriate decision-making based on gathered data.

Third-Party Evaluation

Human Resources ･･･････････ 79 Quality improvement

operation process Departments in charge of implementing countermeasures
(Quality Innovation Center Tochigi) Generating quality
Supply Chain ････････････････ 96 Pulling together enhancement
Japanese market quality data Investigating causes, analyzing feedback R&D departments
Parts Sharing market Applying preventive measures across
and overseas collection quality data
issues, implementing the organization Production
dealers countermeasures and reporting (Critical quality issues exhibition hall) departments

Parts collection Sharing market quality Analyzing materials Measuring part precision Testing engine functionality
Parts collected from the market are information Issues caused by materials are analyzed Parts’ dimensional precision is verified and performance
classified by category and managed to Service, R&D and analysis departments using the latest scientific equipment, using 3D measurement and the latest The functionality and performance of
facilitate quick analysis. gather and share information from the including composition analysis and roundness measurement equipment. assembled engines are verified on a
market. X-ray diffraction analysis systems. bench.

Bench environment test Exhaust gas and mode driving Bench vibration test
Analyses are conducted in road verification Actual vehicle vibrations are reproduced
environments found around the world, The compliance of exhaust gas components on a testing bench together with analyzing
from low temperatures to under the with emissions regulations and proper issues.
scorching sun, to humid conditions, traffic system operation during mode driving are
jams and high speeds. verified.

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 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Quality Initiatives

Environment ････････････････ 36
Critical Quality Issues Exhibition Hall Presents
Safety ･････････････････････ 56
Examples of Key Quality Issues
Quality ･････････････････････ 65 A critical quality issues exhibition hall was established at the Quality Innovation Center
▲

Tochigi in 2009 so as not to forget past experience with market quality issues and to
Basic Approach make sure the lessons are passed on by displaying actual items and teaching about the
Global Management issues.
The hall provides key examples of past market quality issues and targets Honda
Quality Initiatives
associates, suppliers, overseas distributors and service-related personnel. Around 1,500
Third-Party Evaluation people visit the hall annually for training or as part of a tour.
In particular, training for researchers designing and developing products is being
Human Resources ･･･････････ 79 expanded from new recruits and newly promoted managers to also include young
associates in their fifth year with the Company and associates from Honda’s overseas
businesses in order to strengthen activities preventing people from forgetting past
Supply Chain ････････････････ 96 issues with market quality.

Rust on the body of a Honda Civic made in 1981 Cracked exhaust manifold of Honda Life mini-vehicle
made in 1999

Training for members of an overseas factory

quality Honda SUSTAINABILITY REPORT 2018 75

 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Quality Initiatives

Environment ････････････････ 36
Analysis in Partnership with Overseas Entities
Safety ･････････････････････ 56
Overseas production plants play a central role in conducting the same type of quality
enhancement activities as Quality Innovation Center Tochigi.
Quality ･････････････････････ 65
▲

When plants encounter a particularly difficult market quality issue and request
Basic Approach assistance, the Center investigates and analyzes the issue and reports the results back
to the overseas facility.
Global Management

Quality Initiatives

Third-Party Evaluation

Human Resources ･･･････････ 79

Quality Innovation Center Tochigi, Japan
Working with automotive production plants
Supply Chain ････････････････ 96

U.K.
North Canada
Europe America
China U.S.A. (Ohio)
Turkey Quality Innovation U.S.A. (Indiana)
Center Tochigi
Pakistan China (Wuhan) U.S.A. (Alabama)
India Taiwan China (Guangzhou)
Vietnam Mexico
Thailand
Nigeria Philippines
Malaysia
Asia
Indonesia
South America
Brazil

Argentina

quality Honda SUSTAINABILITY REPORT 2018 76

416-2

Editorial Honda Overview of Performance •Assurance

Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Quality Initiatives

Environment ････････････････ 36
Handling of Quality Issues When They Occur
Safety ･････････････････････ 56
When Honda determines that an issue occurs with a product that requires market action,
it quickly reports the issue to government authorities in accordance with individual
Quality ･････････････････････ 65
▲

countries’ regulations and contacts owners by means of direct mail from dealers or by
Basic Approach telephone to provide information about how they can receive free repairs. Associated
information is also provided on Honda’s website and through the news media as
Global Management necessary.
Quality Initiatives A Global Quality Committee is quickly convened in accordance with G-HQS and
decisions concerning market actions are made by its chairperson in consultation with
Third-Party Evaluation overseas members, including experts from departments involved with quality issues
who are capable of making objective decisions.
Human Resources ･･･････････ 79
Number of Global Quality Committee meetings (FY2018)
Supply Chain ････････････････ 96 Segment Number of times
Automobiles 50
Motorcycles 16
Power Products 8
Total 74

<Airbag recalls>
The repeated recalls for the airbags have caused Honda customers great inconvenience
and concern.
Honda has always placed top priority on customer safety and peace of mind and
responded with this in mind.
In light of agreed upon revisions to the consent order between the National Highway
Traffic Safety Administration (NHTSA) and Takata in May 2016, Honda has decided to
replace serially all Takata ammonium-nitrate based driver and passenger front airbag
inflators that do not contain desiccant.
Honda will continue to make its utmost efforts to ensure the sufficient supply of
replacement inflators to customers and take other necessary measures as quickly as
possible.

quality Honda SUSTAINABILITY REPORT 2018 77

 Editorial Honda Overview of Performance •Assurance
Contents 1 Policy 2 Top Message 3 Philosophy 4 Honda 5 Strategy 6 Governance 7 Report 8 •GRI Content Index
•Financial Data

7 Performance Report Third-Party Evaluation

Environment ････････････････ 36
Honda’s design and development, production, and sales and service departments are Results of the 2017 IQS for automobiles J.D. Power Asia Pacific
working together to win the top ranking in the Initial Quality Study (IQS) for automobiles
Safety ･････････････････････ 56 conducted by J.D. Power, an independent evaluation organization, as an indicator of
Country Brand Ranking

customer satisfaction, which constitutes the results of the quality cycle. Honda No.20
U.S.A.
Quality ･････････････････････ 65
▲

Acura No.19
Basic Approach Japan Honda No.2
Global Management

Quality Initiatives Country Segment Model Ranking

Third-Party Evaluation Small Car Fit No.3

U.S.A.
Midsize Pickup Ridgeline No.3
Human Resources ･･･････････ 79 Mini-vehicle N-WGN No.1
Japan
Minivan Freed No.1
Supply Chain ････････････････ 96 Midsize SUV CR-V No.1
China
Midsize Upper Accord No.1
Midsize City No.1
India Premium Compact Jazz No.3
Entry Midsize Amaze No.3
HR-V No.1
Compact SUV
BR-V No.3
Thailand City No.2
Entry Midsize
Jazz No.3
Midsize Civic No.2
* Includes top three vehicles in major markets from January to December 2017

Sources:
* J.D. Power and Associates 2017 U.S.
・Initial Quality Study SM (based on responses from more than 77,515 owners who purchased or
leased a new vehicle as surveyed from February to May 2017)
* J.D. Power Asia Pacific 2017 Japan
・Initial Quality Study SM (based on responses from more than 22,924 owners who purchased a new
vehicle as surveyed from May to June 2017)
* J.D. Power Asia Pacific 2017 China
・Initial Quality Study SM (based on responses from more than 23,993 owners who purchased a new
vehicle as surveyed from March to July 2017)
* J.D. Power Asia Pacific 2017 India
・Initial Quality Study SM (based on responses from more than 8,578 owners who purchased a new
vehicle as surveyed from May to September 2017)
* J.D. Power Asia Pacific 2017 Thailand
・Initial Quality Study SM (based on responses from more than 4,866 owners who purchased a new
vehicle as surveyed from May to September 2017)

quality Honda SUSTAINABILITY REPORT 2018 78