Ford / Honda in Recent Term Paper

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According to an article entitled " New Manufacturing System Gives Honda Flexibility" The flexible manufacturing process created by Honda gives the company an advantage over competitors. The article explains that close cooperation between Honda's production and R&D departments allowed the company to create the first ever production line in North America upon which SUV's and Trucks could be produced together. On this production line Honda's popular minivan the Odyssey and its luxury SUV the Acura MDX are produced. The article asserts that using what the automaker has dubbed its "New Manufacturing System...will increase speed by reducing the time needed to bring a new model to mass production or add an existing model to a different plant. It also will increase efficiency by cutting much of the investment normally needed for retooling (Wright).

In addition the author explains that Honda's manufacturing system utilizes new general welding equipment. This equipment allows for the use of "reteaching instead of retooling (Wright)." This technology uses fewer gigs, which means the factory needs less maturation to create a new model. Therefore the general weld allows the production line to convert to one vehicle to another with ease (Wright).

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The ease at which the company can switch to other vehicles on the same production line is a prime example of why it has been able to expand production while other companies have been forced to decrease production. Honda also produces quality products that have high resale values and good gas mileage. In the midst of rising gas prices consumers are looking to buy vehicles that will be reliable and not adversely impact their gas budgets.

In addition, over the past few years Honda has increased production while Ford has cut production several times. For instance in 2001 Ford cut production by 10% ("GM, Ford, Chrysler All Cutting Back on Production"). More recently the company has reduced production at additional plants. According to a report found in The Detroit news more recent cuts are a result of poor SUV sales for Ford. Because sales of Ford's Explorer have decreased by 25% this year alone, the company has been forced to decrease production. For these reasons Honda has been able to increase productivity while Ford's productivity and financial standing has declined.

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