Ayutthaya, 24 November 2008 - The designation of Honda Automobile (Thailand) Co., Ltd’s auto manufacturing facilities at Ayutthaya as a ‘mother plant’ role, is a major endorsement of Honda’s quality and human resources here in Thailand.

It’s a status that reflects Honda’s advanced manufacturing technologies here, and Thailand’s skilled human resources, excellent infrastructure, as well as the wide network of auto suppliers. This endorsement puts Thailand on the international map as a world-class quality manufacturing base.

The role of the ‘mother plant’ status is significant as it confers the facility as a regional production headquarters sharing know-how with Honda’s manufacturing teams from other countries.
 
The ultra-modern manufacturing facility in Ayutthaya will take on a ‘mother plant’ role and lead global production. It signals Honda’s massive vote of confidence in the country’s automotive production expertise, potential and supporting infrastructure, and reaffirms the automaker’s commitment to make Thailand a world-class manufacturing base.

From product development to final production, Honda’s teams from other countries that are charged with manufacturing and operational responsibilities will gain know-how and skills from this plant. Later, when their respective facility is ready to commence manufacturing, the Thai team will provide them with technical support and help develop their production process move along.

As it is, Thai technicians and engineers have been assigned to support Honda’s manufacturing activities for the all-new City and the MY2009 Civic in other countries in this region. They have been tasked with lending support and sharing their know-how on quality manufacturing processes and systems with their counterparts at Honda’s subsidiaries in Taiwan, Malaysia, India, Indonesia, Vietnam, Pakistan and the Philippines.

Last third-week of October, Honda commissioned the Baht6.2 million facility which is adjacent to its existing plant. This new facility doubles Honda’s annual production in Thailand to 240,000 units. The commissioning of the new plant was driven by the growing demand for Honda cars in both domestic and key export markets in the Asia/Oceania region.

Locally, Honda has sold over 72,000 vehicles in the year up to October, increasing its sales by 35 percent for the same 10-month period in 2007. Honda’s market share rose from 10.5 percent last year to 14.1 percent between January and October 2008.

Both the facilities combined covers 850,000 sq m (over 530 rai), operate on a flexible-manufacturing basis, and produce Honda’s best-selling models – the Jazz, City, Civic, CR-V, and the accord – for both domestic and export markets.

The higher use of automation and advanced technologies at the new auto facility streamline the production process and improve efficiency. The deployment of clean production, technologies, optimum use of natural air and lighting, mechanisation in the engine assembly and painting operations, also help to drive out non-value costs from the manufacturing processes. Good processes and systems serve as competitive advantages and will help maintain the technological leadership and quality commitment.

Automation systems such as the use of an advanced conveyor and introduction of mechanisation in the engine assembly and painting operations reduce non-value costs in the production. A unique delivery system, which moves the parts required to assemble a car along with the vehicle on the assembly line, enhances the production process. The higher use of mechanisation and robots greatly improves the efficiency of the welding operation.

As Honda is always on the look out for ways to enhance quality throughout its organisation by focusing on innovations and technology, and striving for zero-error processes and systems, whereby these attributes have helped Honda Thailand to earn this ‘mother plant’ status to deliver quality commitment in the products and to meet the customers’ expectations.

Honda’s new Ayutthaya facility is also one of the cleanest automotive plants in the world. Through innovative applications of technology and complete water recycling system, Honda has incorporated best manufacturing practises that do not negatively impact the environment. Its innovative water-based paint technology, for example, reduces volatile organic compounds by 70 percent.

Currently, Honda’s manufacturing in Ayutthaya is the sixth largest in the world after Japan, USA, China, Canada and the United Kingdom. Honda is Thailand’s second largest manufacturer and exporter of passenger cars. Since 1984, Honda has committed over Baht21 million in ‘hardware and software’ investments in Thailand, reinforcing its next-generation technologies and expertise at its world-class facility in Ayutthaya.

Source: Fleet-asia.com’s correspondent in Thailand