Mark Willoughby. Department Manager North American Purchasing Planning Honda North America, Inc. November 20, 2014

Transcription

1 Mark Willoughby Department Manager North American Purchasing Planning Honda North America, Inc.

2 Introduction to Honda Operations in Ohio Introduction to Honda Operations in Ohio Our Supply Base in Ohio Supply Base in Ohio Honda s Strategy for Local Supply Chain New Model Launch Activities Global Supply Chain North American Purchasing Division Challenges Organization

3 Introduction to Honda Operations in Ohio Introduction to Honda Operations in Ohio Our Supply Base in Ohio Supply Base in Ohio Honda s Strategy for Local Supply Chain New Model Launch Activities Global Supply Chain North American Purchasing Division Challenges Organization

4 Total Global Sales CY Million Units Sold Worldwide Powersports 16,790,000 Automobile 4,279,000 Power Equipment 6,008,000 China Honda Motor (China) Investment Co., Ltd. North America American Honda Motor Co., Inc. Japan Honda Motor Co., Ltd. Europe/Africa/Middle East Honda Motor Europe Ltd. Asia & Oceania Asian Honda Motor Co., Ltd. South America Honda South America LTDA

5 Honda in North America Honda has steadily expanded its capabilities to create products in N.A., from product concept and design to full development and production Research & Development Manufacturing Sales

6 Production & Research Facilities in North America Manufacturing Facilities Ohio Honda of America Mfg., Inc. Marysville Auto Plant East Liberty Auto Plant Anna Engine Plant Honda Transmission Mfg. of America, Inc. Indiana Honda Manufacturing of Indiana, LLC Alabama Honda Manufacturing of Alabama, LLC Georgia Honda Precision Parts of Georgia, LLC North Carolina Honda Power Equipment Mfg., Inc. Honda Aircraft Company, LLC Honda Aero, Inc. South Carolina Honda of South Carolina Mfg., Inc. Canada Honda of Canada Mfg. Plant 1 Plant 2 Engine Plant Mexico Honda de Mexico S.A. de C.V Guadalajara Motorcycle/Parts Plant Guadalajara Auto Plant Celaya Auto Plant R&D Facilities Manufacturing Facilities R&D Facilities HRA Silicon Valley Lab (HSVL) HRA Los Angeles Center HRA Advanced Design Studio (Downtown Los Angeles) HRA Denver HRA Cincinnati HRA Ohio Center HRA OSU (MIX) HRA Detroit HRA Marine Engine Research Facility (Fla.) HRA South Carolina HRA Canada (Markham, Ontario) HRA Burlington, N.C. (Honda Aero, Inc.) HRA North Carolina HRA Halifax, Nova Scotia, Canada

7 North American Auto Production History Auto production facilities have combined to produce more than 26.8 million automobiles since 1982 Units in Thousands 1,750 1,500 1,250 1, CY Total 1,781,213 units Honda of Indiana 241,589 Honda of Alabama 333,556 Honda de Mexico 63,172 Honda of Canada 408,124 Honda of America 734,772 0 The North American region has become Honda s volume leader globally, and more than 40% of Honda s North American production is in Ohio

8 Introduction to Honda Operations in Ohio Introduction to Honda Operations in Ohio Our Supply Base in Ohio Supply Base in Ohio Honda s Strategy for Local Supply Chain New Model Launch Activities Global Supply Chain North American Purchasing Division Challenges Organization

9 North American Supply Partners In 2013, Honda manufactured 1.78 Million vehicles in North America, as parts purchases in the region exceeded $25.5 Billion The Most Ever. Last year, Honda spent more than One-Third of its total North American budget with our 158 Ohio Suppliers. Over the past five years, Honda purchased more than $37 billion parts from our Ohio suppliers. In other words, the Buckeye State is plays an essential role in Honda s supplier network.

10 ,200 Employees 5 Manufacturing Facilities Additional 7 Operational Locations Over $9 Billion Invested

11 U.S. Suppliers in Ohio Millions Honda purchased* $9.7 billion in parts from 158 Ohio suppliers in calendar year ,000 More than $63.2 Billion in Ohio Supplier Spend Since ,500 5,000 2,500 - *OEM parts purchased by all Honda plants in North America as of Dec. 31, 2013

12 Introduction to Honda Operations in Ohio Introduction to Honda Operations in Ohio Our Supply Base in Ohio Supply Base in Ohio Honda s Strategy for Local Supply Chain New Model Launch Activities Global Supply Chain North American Purchasing Division Challenges Organization

13 Supply Chain Management in Ohio Anna Bucyrus Marion Marysville Akron Canton Supply Chain Management Part Development Production Planning Parts Procurement Parts Manufacturing Parts Delivery Final Manufacturing Supplier Relationship Management Jeffersonville Steel Bar from Akron/Canton Steel processed in Akron Forging supplier in Jeffersonville Machining in Bucyrus Assembled into engine at Anna Assembled into Auto at Marysville Scrap recycled Raw Material Work-in-Process T1 Parts Sub-assembly Completely Built Unit Business opportunities exist in Ohio for the extended supply chain raw material, sub-tier, tier 1, transportation, warehousing, packaging & assembly

14 Honda maximizes logistical utilization and minimizes environmental impact by optimizing transportation routing Logistics Management MILK RUNS Orders SUPPLIER Advance Ship Notice HONDA SUPPLIER Third Party Logistics Consolidation Center HONDA SUPPLIER SUPPLIER HONDA

15 Ohio s Role in Global Logistics Many parts are shared between plants and suppliers requiring duplicate storage and handling Japan Regional Logistics Center China HAM Thailand Europe *Located in Marysville, OH HMIN Suppliers Mix freight to eliminate 20ft containers Improve vanning efficiency Completely fill the containers Improve stack ability Completely fill each case or skid Goal: Eliminate waste in Container and Cases in order to reduce overall shipping cost through consolidation of product

16 Introduction to Honda Operations in Ohio Introduction to Honda Operations in Ohio Our Supply Base in Ohio Supply Base in Ohio Honda s Strategy for Local Supply Chain New Model Launch Activities Global Supply Chain North American Purchasing Division Challenges Organization

17 North American Support of Global Production Canada United Kingdom Mexico US Egypt Turkey Pakistan India Vietnam Thailand China Taiwan Japan Brazil Malaysia Indonesia New Zealand

18 Examples of parts being Exported from Ohio Honda suppliers are shipping parts to Honda manufacturing facilities throughout North America and 15 other countries around the world rely on parts from Ohio suppliers. 4 door Accord Fog Light Japan & Thailand Bumper Turkey, Thailand & Vietnam CR-V Tail Lights Great Britain Accord Engine Cover Japan Many Honda suppliers in North America are successfully competing on a global basis Honda has opportunity for competitive suppliers to support production overseas

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20 Extended Supply Chain and Risk Assess Domestic Supply Chain and Extended Global Supply Chain Exposure to Fire Pandemic Data Natural Disasters Political Unrest Financial The ability to manage risk appropriately supports sustainable business strategies

21 Purchasing s Approach to Risk Management Judgment of Risk Tolerance Intervention Action Mitigation Identification & assessment Reflection, Lessons learned Proactive Reactive Crisis! Impact Assessment Recovery Stabilize Response Simplicity, Concentration, Speed, and Communication

22 Summary Ohio plays an essential role in Honda s global operations Honda has developed a robust supply chain in Ohio Good relations with Ohio suppliers contribute to Honda s success