QCT, the Cornerstone of Automotive Quality Reform
In November of 2002, Honda established Quality Innovation Center Tochigi (later renamed Quality Reform Center and Quality Center Tochigi QCT) on the site of the Tochigi Manufacturing Division’s previous Haga Plant in order to give form to the company’s determination to pursue quality reform in all its automobiles.
QCT’s Car Quality Reform Office consists of four departments: The Joint Analysis Office, which collects information concerning quality problems that might arise in the market, then quickly analyzes and recommends countermeasures; the Source Management Office, which analyzes quality information and provides timely feedback to the source, whether that be Development, Manufacturing, or outside suppliers; the Product Verification Department, whose sole purpose is to verify the durability of finished vehicles and prevent quality problems before releasing the finished vehicle onto the market; and the Quality Planning Office, which plans out quality strategies for all of Honda, and creates a quality assurance system through Outstanding Quality meetings and other activities. Additionally, QCT also features the Aftersales Quality Department, which is responsible for domestic service, and the Technical Service Department that provides further support for Honda’s overseas subsidiaries.
One important task of the Joint Analysis Office is to recreate problem events. If a defect turns up in a customer’s car, frequently the problem can’t be found by simply checking a single component. Therefore, it’s extremely important to duplicate the problem by actually using the vehicle or component in various ways in order to analyze the actual cause of the problem.
For problems that QCT was unable to recreate in-house, or intermittent problems that only occur when the customer is using the product, a ‘scramble’ may also be conducted. This may involve a QCT staff member actually visiting the customer together with a Honda Group service area engineer in order to check the customer’s usage and road conditions.
Ideally, if the manufacturing source makes a product based on a thorough understanding of the customer’s conditions of use, how the product is used, and customer requirements, problems should not occur, meaning that eventually QCT would also become redundant. However, it’s also true that in order to maintain a new level of outstanding quality, it’s necessary to maintain a presence like QCT. Any company that manufactures products has certain social responsibilities, and it becomes extremely important to have a system in place that can provide feedback on any failures that occur.
Even for Honda, it’s important to accumulate know-how and standards through its efforts to achieve a new level of outstanding quality. QCT also has a responsibly to reinforce this sort of culture company-wide. In order to provide timely and accurate feedback on quality issues, Honda created an independent organization to consolidate quality-related functions, while creating a framework for working with R&D centers in the areas of collection of service information, problem analysis and countermeasures, which is something unique to Honda and has proven to be a cornerstone of reform at the source. In a sense, the pursuit of quality can be likened to the pursuit of dreams. However, without this sort of challenge, the evolution of Honda quality would not be possible.
Quality Innovation Center Tochigi
Collective Strength Breeds Quality
In 2007, then-president Takeo Fukui said this: “Although the factory that releases the product is ultimately responsible for its quality, this is a challenge that requires all associates to work together to deal with. The quality of a product will only be evaluated when it is created by the collective strength of the company, including R&D laboratories, purchasing departments, parts suppliers, as well as sales and service departments in the software field. If we’re unable to keep this in mind, there will be no future for our company.”
Product competitiveness is ultimately determined by the quality level of each and every product. Whether motorcycles, cars or Power Products, Honda’s lineup of products can be life-threatening if problems occur. Therefore, such things must never be allowed to happen. If the reliability of a product, including safety, is lost, Honda’s business will not survive.
Trust represents one of the central cores of the Honda brand, and in this case ‘trust’ refers to certain essential requirements, such as being durable and safe, that an automobile manufacturer must abide by. However, a new level of outstanding quality aims for even higher levels of trust. If, while ensuring reliability, Honda products acquire certain attractive qualities that make them better overall, including in terms of sensibility, then it gives these products a more positive appeal. While, according to media reports, the new level of outstanding quality approach leads other auto manufacturers, it can also be said to have been a confidence-boosting initiative for Honda in the midst of early 2000s era quality problems that seriously shook company confidence.
“Customer demand has been increasing over time, but Honda’s customers have also come to demand a higher level of quality, so we must respond with quality that exceeds expectations. It’s Honda’s destiny that the spirit of challenge is needed now more than ever.”
- Honda president Takeo Fukui
Honda’s new level of outstanding quality approach is a symbol of its challenge to constantly exceed expectations. As its number of models increases and overseas development progresses, Honda will realize its unique and advanced products by applying its collective corporate strength to meeting and exceeding the high expectations of its customers.
As the company’s production and procurement of parts and materials was becoming more globalized, the Global-Honda Quality Standard (G-HQS) was created in 2005 with the aim of simultaneously improving the quality of Honda products sold worldwide. The reasoning behind this development was that an internationally common quality management system was found to be essential to continuing to produce “120% product quality.”
With the adoption of G-HQS, each production base was then able to roll out quality assurance systems among its various offices, meaning not only in production, but also in logistics and service departments. As a result, overseas production bases would now qualify for ISO9001 certification, and by the end of March 2023, 56 out of 60 Honda production bases around the world had obtained ISO certification.
There also arose a growing spirit for providing ISO 9001-level quality assurance not only in Development and Production divisions, but also in Honda dealerships. In support of this movement, then Honda president Takahiro Hachigō issued a 2016 message declaring the start of a New G-HQS.
He explained, “Honda has been meeting customer expectations from the very beginning with vehicles and products that incorporate world-leading technology. However, it is only through the infusion of high quality that this technology can come alive.” He also encouraged all associates to “work with ‘Team Honda’ under this New G-HQS system to provide products that help expand life’s possibilities for customers worldwide.”
“Guarantee quality through rules-based activities.” This awareness has been gradually increasing at Honda worldwide. As the regional independence of each country has progressed, G-HQS efforts have expanded outside Japan’s borders, with the United States advising factories in Mexico, and Brazil supporting efforts in Argentina.
Unsurpassed quality workflow promoted predominantly through QCT
The second generation Fit that promoted the global development of “a new level of outstanding quality” from the beginning of development.
Quality Without End
In North America, Honda filed a recall report in November of 2008 (and in Japan and other countries in June of the following year) in direct response to defects found in the SRS driver-side airbags installed in some vehicles manufactured between 2001 and 2002.
Taking this recall as an opportunity for change, Honda also made extensive efforts to improve quality in both the parts area and at its supplier sources. However, in 2014 it was reported that in Japan the same model was recalled five times, which seriously inconvenienced many customers. In response to these problems, the underlying causes of the recalls were meticulously identified, down to mechanical construction, and measures were taken to prevent any recurrence.
Following this, Honda continued to focus the collective strength of the entire organization into promoting efforts to ensure the worldwide establishment of an Outstanding Quality system by 2025.
As long as Honda remains engaged in corporate activities, there will always be various risks involved not strictly related to quality. However, what remains critical throughout is reflecting the customer’s perspective, regardless of the situation. This is not just an issue for associates involved in quality control, but is instead a common theme for the entire Honda company. Each and every associate needs to be made keenly aware of this, not only on the factory floor, but also in the showrooms and service departments, which will enhance Honda’s quality as a company and build trust in the Honda brand.
Honda’s basic philosophy of the ‘Three Joys’ suggests the very practice of building trust in the brand. Along with the thinking that there can be no end to quality, or no end to efforts to improve quality, it remains essential to continue strengthening efforts in the area of quality. Examples include the continuous analysis of problems arising from the market and feedback of information to the source, all done in order to increase trust in Honda.
Looking to the Future
Honda’s founder once said, “We must strive for 120% product quality in our products in order to avoid even 1% rejection.” These words formed the foundation of Honda’s goal of becoming a company whose existence is expected to span generations, while also being the identity of Honda, which has always strived to manufacture products that exceed the levels of quality expected by its customers. The environment surrounding the auto industry is now entering a period of greater change than ever experienced before, especially as it pertains to the environment, safety, and intelligence.
Honda has frequently let it be known that in the future it plans to accelerate the introduction of electrified powertrains and safe driving support technologies in order to realize a society with Zero traffic collision fatalities, and that it will take on the challenge of creating ‘new value’ through open innovation by collaborating with other companies, including those in other industries, to take on the challenges of new mobility that incorporate IoT.
As of March, 2023, Matsuo of the Quality Reform Management Department noted that, “No matter how excellent a product’s design and operation may be, if quality is not up to par, customers won’t be able to use it with confidence. ‘Striving for 120% product quality’ was an aspiration of our founder, Soichiro Honda. However, quality can also determine a company’s chances of survival. In other words, it’s an absolute requirement for a company whose very existence is expected to extend well into the future. Furthermore, in order to put Quality First into practice, a strong commitment that’s not easily influenced by other people’s opinions is needed. ‘Quality First’ is a Honda commitment that should outweigh everything else. Even as we advance with reforms for coming generations, we must continue to carry out activities that help us achieve another order of magnitude higher quality.”
Learning from failures, the Critical Quality Issues Exhibition
Hall aims to foster and spread quality awareness so that
associates can learn from earlier mistakes and customers
will never be inconvenienced by quality problems again.
Critical quality problems should never be allowed to be forgotten, only to turn up again elsewhere. With the concept of coming into contact with actual products that have failed and passing these down to future generations in order to prevent the same problems from occurring again, the Critical Quality Issues Exhibition Hall was created in 2009 at Quality Innovation Center Tochigi in order to showcase products with critical quality issues that express the customer’s ‘pain’ and ‘anger.’ Actual products that failed are put on display in the belief that “the voice of the customer is the real issue.” By seeing these examples and learning the reasons for their failure, associates will be able to recall customer feelings, and later assist in efforts to foster and spread awareness of the need to continuously improve quality.
KETAHIN, Penetrating the World
In 2005 – 2006, the term ketahin (an abbreviation of a Japanese term that means a new level of outstanding quality) came to be widely used throughout the company. Whenever KETAHIN was used, it was not only understood by Honda associates in Japan but also by overseas associates.*3 (Overseas banner photos appear here.)
- Overseas Associate: Honda refrains from using the term ‘employee,’ instead using the term ‘associate,’ which implies a colleague who works together with others to achieve a common goal.
