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Honda Cars India Ltd.'s Quality Journey

CASE STUDY, OPERATIONS MANAGEMENT
ET Cases, 10 pages
AUTHOR(S) : R. Muthukumar and Dr. Nagendra V. Chowdary

Case Preview

Honda Cars India Ltd.’s Quality Journey

 

“Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.”1

– Company Principle (Mission Statement), Honda Cars India Ltd.

 

Honda Cars India Ltd. (HCIL), a subsidiary of the Japan-based Honda Motor Company2, began operations in December 1995 for the production, marketing and export of passenger cars in India. The company’s product range included – Honda Brio, Honda Amaze, Honda City and Honda CR-V. After lackluster performance initially, HCIL started meticulous quality initiatives and focused on improved quality in its products through TQM approach.

About HCIL

The company started its operations through a Joint Venture between HMC and Usha International of Siddharth Shriram Group with a name Honda Siel Cars India Ltd (HSCI). HCIL’s first manufacturing unit was set up at Greater Noida, U P in 1997.

The company started its innings in India with a portfolio of premium offerings priced upwards of 7 lakh comprising of sedans like City and Civic and premium Sports Utility Vehicle CR-V. However, due to high competition, HCIL could not get good sales. In addition, like other overseas automobile companies, HCIL too, did not focus enough on making the cars that Indian consumers wished for. They thought Indian consumers to be similar to other global markets’ consumers.

The passenger car market was oligopolistic in nature during that time and continued to be same. While Maruti Suzuki continued to hold around 50% market share, there was a fierce competition amongst other incumbent players. Among them HCIL could achieve only meager market share (Exhibit I (a) and Exhibit I (b)).............

 



1 “Vision”, http://www.hondacarindia.com/about/vision.aspx (accessed date: April 15th 2015)
2 It is the second-largest Japanese automobile manufacturer. Honda is the sixth largest automobile manufacturer in the world.

Teaching Note Preview

Honda Cars India Ltd.’s Quality Journey

 

Synopsis

This case study is meant for learners pursuing a course in Operations Management. The case study helps to understand and describe quality and TQM in the context of Honda Cars India Ltd. (HCIL), a subsidiary of Japan-based Honda Motor Company. HCIL began its operations in December 1995 for the production, marketing and export of passenger cars in India. The company’s product range includes Honda Brio, Honda Amaze, Honda City and Honda CR-V. After a lackluster performance in the initial days, HCIL started meticulous quality initiatives and focused on improved quality in its products through TQM approach. The case study gives scope to debate how focus on quality and TQM approach benefitted HCIL. It has to be seen whether the quality initiatives will be enough to the growth momentum for long drive.

Prerequisite Conceptual Understanding

The participants were asked to read the following chapter given as mandatory reading at the end of the case study to participate effectively and to enrich the learning outcomes:

  • • Jay Heizer, et al., “Managing Quality”, Operations Management, 9th Edition, Pearson Education, 2008

 

Case Positioning and Setting

This case study can be used in MBA/Executive MBA program for Operations Management course to illustrate the concept of ‘TQM’ and exemplify its strategic implications.

Assignment Questions

  • I. Define Quality and TQM.
  • II. Discuss the benefits of improved quality and TQM.
  • III. ................

 

Suggested Orchestration

The classroom discussion and analysis for this case study could be summarized and facilitated under two broad sections [Exhibit (TN)-I].............

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Abstract


This case study is meant for learners pursuing a course in Operations Management. The case study helps to understand and describe quality and TQM in the context of Honda Cars India Ltd. (HCIL), a subsidiary of Japan-based Honda Motor Company. HCIL began its operations in December 1995 for the production, marketing and export of passenger cars in India. The company's product range includes Honda Brio, Honda Amaze, Honda City and Honda CR-V. After a lackluster performance in the initial days, HCIL started meticulous quality initiatives and focused on improved quality in its products through TQM approach. The case study gives scope to debate how focus on quality and TQM approach benefitted HCIL. It has to be seen whether the quality initiatives will be enough to the growth momentum for long drive.



Pedagogical Objectives

  • To discuss and describe Quality and TQM
  • To debate on the benefits of improved quality and TQM
  • To elucidate how benchmarking is used in TQM
  • To discuss how HCIL implements quality and continuous improvement in its plants

Case Positioning and Setting
This case study can be used in MBA/Executive MBA program for Operations Management course to illustrate the concept of 'TQM' and exemplify its strategic implications.





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- Case Study
- Teaching Note (**ONLY for Academicians)
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