Caner Çelik

35985

KOÇ UNIVERSITY
College of Engineering

DEPARTMENT OF MECHANICAL ENGINEERING

MECH 391
SUMMER PRACTICE REPORT

Caner ÇELİK
Honda Türkiye A.Ş
Administration
07.08.2017-08.09.2017

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SUMMER PRACTICE REPORT

Student Name: Caner ÇELİK

Starting Date:07.08.2017

Completion Date:08.09.2017
Total Working Days:21

Summer Practice #: Mech 391

Company : Honda Türkiye A.Ş

Department : Administration

Address : Honda Türkiye A.Ş Şekerpınar Mahallesi Yanyol

Sokak No:1 Çayırova/Kocaeli

Tel: 0262 648 86 86

Contact Person (Name, Department, Phone, Fax, etc.):

Ufuk Aksakal

Human Resources Department

0262 648 87 70

ufuk.aksakal@honda-eu.com

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0. Introduction

1. Company Description

2. Charts

2.1 Organization Chart

2.2 Sales Chartt

3. Administration Report

3.1 Honda Philosophy - Working values - Strategies

3.2 Human Resource

3.3 Human Resource Management Systems

3.4 Quality Improvement System

3.5 Marketing

4. Manufacturing

4.1 Press Department

4.2 Welding Line

4.3 Paintworks

4.4 Assembly Line

5. Summary

6. Preferences

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0. Introduction

I did my internship at many different departments this summer. This was the
organization internship but, Honda is a great factory so I wanted to see not only organization
side, but also factory side. However, I accepted Honda Türkiye as an organization intern and
taking information about the factory side was limited for me. So, this report concentrated about
HR, Management and Marketing.

Honda Türkiye is a production firm. All associates start work at 8 PM and finish 4:30
AM. The management side uses open-office system. All departments are in the same office,
everyone has own desk. Including CEO and visitors cannot enter the factory side without
Honda Uniform. In Honda, there is a perfect equality coming from Japanese culture. Everyone
is dressed in the same place, eating in the same place and wearing the same things.

In my first day, I took orientation training with all other interns to learn company’s
objective, mission, vision, values, corporate culture, facilities etc. After that associate
handbook was given and I learned about organization structure, rules, information about
departments and company. Honda works and arrange everything according to Japanese
calendar. The end of the year is March 31. New year starts at April 1.

1. Company Description

Honda Türkiye was co-founded with Honda Motor Company and Anadolu Group with
50-50% partnership in 1992 with the intention of manufacturing, exporting, importing and
marketing Honda Automobiles and importing and marketing Honda Motorcycles in Turkey.
Honda Türkiye factory is in Şekerpınar and started production in 1998. Since January 2003 the
company continues its operations as Honda Türkiye with 100% Honda Motor Co. capital. [1]

The vision of Honda Türkiye is to reach the maximum automobile manufacture

capacity, provide automobile after sales service to Turkey, Europe and neighbor countries and
to be one of the two automobile manufacturing and distribution centers of Europe. Honda
Türkiye operates in the light of this vision.

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The mission of Honda Türkiye is to be manufacturer, exporter and importer company

which gives preference to profit and environment responsibility, based on customer satisfaction
and meets the expectations of shareholders, dealers, society, customers and associates.

Honda Türkiye manufactures 1.6 Lt. versions of Civic 4 Door. In addition to our locally
produced Civic Sedan, Honda Türkiye also imports Civic Hatchback, JAZZ for people with
young life style, ACCORD for who prefer a luxury car and desire comfort and performance at
the same time, CR-V which is leader of its segment, CR-Z which is the first Hybrid Car, it has
two powers; a competitor intelligence and a green heart.

1.1 The Honda History

Honda began as a small motorcycle manufacturer and now produces 22 million

products worldwide that produce cars, motorcycles and power products.

Honda's world-leading engine manufacturer and engine expertise have led Honda to
become a world leader in the world's leading motorcycle manufacturer, the world's leading
independent automobile manufacturer and lawnmowers and other power products.

Honda wants to retain the qualities of a small company close to its customers even when
Honda operations expand across the globe. Soichiro Honda founded Honda in 1948 and started
as a local company with a global vision. They are now a global company with a local vision.

Bearing a global perspective, Company Principle is committed to providing the highest quality
products at a reasonable price for customer satisfaction worldwide. Now this is forward
thinking.

In 1963, Honda commenced car production, just one year later entered its first formula
one race. In 1965, just 2 years after starting car production, Honda won its first grand prix. In
1972, first Civic was built under the “Man Maximum, Machine Minimum” concept. By the
dawn of 1980s, it was a leading multi-national, which matched quality and engineering with a
sense of responsibility to its associates and the environment.

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11 years after its foundation, the Honda opened its first overseas subsidiary, American
Honda Motor Company Inc, and today has over 124 production sites in 31 countries, employing
over 140,000 associates.

Honda is the largest engine manufacturer in the world; world #1 in global motorcycle
sales; #1 in global power equipment sales, #7 largest car company; #19 largest brand in the
world. 67th of the largest financial institution and spends 10 million pounds on R&D every day.
[3]

The Factory’s Departments

 Human Resources Department

 Infirmary
 Administrative Affairs Department
 Finance Department
 Foreign Trade Department
 Automobile Sales and Marketing Department
 Vehicle Distribution Department
 Motorcycle Sales and Marketing Department
 Track Department
 Information Systems Department
 Service Department

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2. Charts
2.1 Organization Chart

Weld Manager

Paint Manager
Factory
Coordinators
Assembly
Manager

AGM of Factory Facilit. & maint.

Vice President
Manager

PP & Cont.
HR Manager
Manager

Purchasing
Manager

Veh . & Mark

Quality

Parts Quality
Manager

Finance Finance & acc.

AGM of Finance
Coordinator Manager
CEO
Hideto YAMASAKI
ISD Manager

FT & Log. Senior

Sales & Log. AGM of Sales & Dealer Sales

Coordinator Marketing Manager

Parts Manager

Service & Parts

Service Manager
Coordinator

Sales & Marketing AGM of Sales &

Coordinator Marketing

Chart 1: Organization Chart of the Honda Türkiye [4]

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2.2 Honda Sales

JAN-
JAN FEB MAR APR MAY JUN JUL AGU SEP OCT NOV DEC JUL TOTAL
2017 2140 1803 1905 1996 2000 1530 1481 1141 12855 13996
2016 1061 1989 1742 2244 1841 1903 1114 2024 1768 1588 1442 2199 11894 20915
2015 659 978 1720 1890 1633 1261 1389 1768 1588 1442 1281 2579 9530 18188
2014 532 1370 1572 1246 1518 1554 1529 1713 1789 1613 1696 2719 9321 18851
2013 896 1258 1655 1689 1841 1914 1969 1486 1629 2090 2137 3538 11222 22102
2012 1415 807 2175 1508 1326 894 932 945 2322 544 710 2622 9057 16200
Table 1Honda Türkiye Sales monthly. Also shown Half-Year and Annual Sales

Honda Türkiye Sales on Montly Basis Annual Sales of Honda

2719
2579
Türkiye
2244

2199
2024
1989

3000
1903
1890

1841

1789
1768

1768
1742
1720

1713

1696
1633

1613
1588

1588
1572

1554

1529
1518

1442

1442
2500 1389
1370

1281
1261
1246

21000
1114
1061

2000
978

20000
659

1500
532

19000
1000 18000
500 17000
0 16000
JAN FEB MAR APR MAY JUN JUL AGU SEP OCT NOV DEC TOTAL

2016 2015 2014 2016 2015 2014

Graph 2 Annual Sales

Graph 1 Sales On Monthly Basis

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3. Administration Report
This part of the report is about my concentration area. So, it is about Human
Resources and the Marketing Department.

3.1 Honda Philosophy – Working Values – Strategies

Honda is a leading company in the Honda field. Any company can develop technology
and plant plants that only receive money. But business partners are motivated, empowered and
free to fulfill their dreams; This is the value that has been offered since the very first days to
constantly create new things for customers. These are the DNA. [6]

Their values are separated into three areas;

1. Fundamental Beliefs
2. The Company Principal
3. Management Policies

3.1.1 Fundamental Beliefs

The Respect to the Individual and The Three Joys act as the foundations of Honda
Thinkers and create a platform for them to start moving. [7]

Respect for the Individual: It invites every partner to feed and encourage
individual differences and to trust each other as an equal partner.

Initiative: Honda encourages creativity and freedom of thought. It provides

the environment to create the best product. [7]

 Investigate opportunities for joint venturers to take initiative

 Feed creative enthusiasm.
 Be active listeners.
 Methods and procedures for serving the client in the struggle are envisaged.
 Realize that the real risk to business success is that you are challenging processes and
failing to heal.

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 Learn about mistakes and make them developmental experiences with the question
'what do we do in the future'.
 Encourage responsibility for actions and consequences.
 Encourage every person to seek and develop innovation passion.

Equality:
 Feel that everyone is part of the team
 Do not distinguish by position
 Notice that all affiliates may contribute
 Accept that different perspectives and ideas provide progress.
 It is a place that can be challenged on the basis of respect and openness.
 Create talent-based opportunities, not just formal training.
 Allow each partner to show maximum capacity [8]

Trust:
 Show clarity and honesty in all business relationships.
 Respect and honor privacy
 Strengthen and support employees to make work-related decisions.
 Accept the reality that the teams approach, but it may take longer, but usually adds
more value and gives better results.
 Respect and evaluate people in talents and values in different fields. [9]

THE THREE JOYS

The goal is to provide joy in the business world. Anyone who knows their company or
products should experience a joyful sensation through this experience.

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The Happiness of BUYING

The Happiness of Buying is achieved by offering products and services that exceed
each client's needs and expectations. The Happiness of Buying, in fact, establishing a
relationship with a customer has been initiated through products and has continued with sales
and service experience. Importance, Sales Taste and Creation Tasteful, the customer cannot be
provided without bringing joy. [10]

The Happiness of SELLİNG

The Happiness of Selling, Honda sells and serve its products and develops relationships
with a customer based on mutual trust. Thanks to this relationship, Honda Associates and its
distributors enjoy the pride and satisfaction of satisfying the customer and offering Honda a
customer. [11]

The Happiness of CREATİNG

The Happiness of Creating is the place where Honda Associates and its partners
participate in design, development, engineering and festivals. Formerly known as '' The
Happiness of Creating '', the creation of quality products. [12]

3.1.2 The Company Principle

The ultimate goal is to become a global company that reaches the ocean and trade
worldwide. The goal is to be a green company

Maintaining a global viewpoint;

 Encourage continuous development within the organization.
 Understand that we all have a responsibility for the planet.
 As associates, realize that they are responsible for seeking ways to reduce
environmental impact.
 Reduce our use of world resources and treasures.
 Communicate clearly
 Create a global perspective with a local antenna.

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To provide the best quality and reasonable price product;

 No matter how good your product is, you do not buy the product if you believe that it
offers excellent value.
 Cost is not worth it.
 Use the wisdom of others to make the best possible decision. [13]

3.1.3 Management Policies

 Always continue with enthusiasm and youth.

 Respect the theory of sound, develop new ideas and choose the most effective market
used at that time.
 Appreciate your work and countenance open communication.
 Continuous efforts for a consistent workflow.
 Always take care about the importance of research and exertion.
 Understanding the Three Reality Principle:

“GENBA: Go to the actual place”

“GENBUTSU: Know the actual situation”
“GENJITSU: Be realistic” [14]

3.2 Human Resource

The Human Resources department is responsible for creating a work environment

where all employees are entertained. The Human Resources Department's activities are
planning and implementation of human resources planning, recruitment, training and
development, performance appraisal, compensation management, personnel affairs, suggestion
and improvement system, communication and motivation. All events and practices are based
on Honda Philosophy, which is respect for the individual and three joys.

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3.3 Human Resource Management System

Recruitment
Each department works together with the HR Department during the recruitment the
process. The first step of the process is to make an announcement internally for the vacant
position. All applications are kept confidential. The interior director is informed in the last step.
Employees who apply for internal rotation must have worked at Honda Turkey for at least two
years. If there is no qualified application for the HTR vacated position, the Human Resources
Department will use another resource to search for more CVs and the HR will transmit the CVs
of the eligible candidates for the relevant division. In the first stage, the HR made an interview
with the right candidates in the second stage and the HR and department managers interviewed
the candidates. Human Resources can then make an assessment of the island and fulfill the
Personality Inventory Application. The reference check is done on the candidate, at least two
references are required. If this is a positive outcome, the job offer is made to the island by the
HR Manager.

Orientation Trainings
The main aim of the training is to explain the company's philosophy and philosophy
and to inform new business colleagues about HTR. HR organization orientation training for
trainees for all new employees. Orientation trainings are given by the HR Department before
its own section of the partner.

Performance Appraisal
In HTR Company, performance appraisal is applied once a year in December.
Performance Data provided after practicing of performance management system are evaluated
for organizing implementing all HR plans and programs. This system includes every HTR
Associates.

Associate Satisfaction Survey

Cooperation Satisfaction Survey, colleagues, management, business, workplace,
security, etc. It is aimed to measure the related satisfaction in various fields and to find the
satisfaction rate of the last partner on an annual basis.

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This study contains a questionnaire. This survey is carried out every year and the results
are evaluated by the HT Department and reported to the General Manager.

Employee Turnover
Employee turnover is the ratio of the total number of employees to the total number of
employees. Employee turnover, which is a major source of concern for most companies, is
costly in low-wage areas where staff turnover rates are highest. “Fees, company benefits,
employee participation and business performance are factors that play an important role in the
turnover of employees. When a company has to change a worker, the company is exposed to
direct and indirect costs. These include advertising, headscarf fees, HR costs, loss of
productivity, new rental training and customer retention.”

3.4 Quality Improvement System

The Vehicle Quality department is primarily responsible for the inspection of the
completed car according to the performance test and inspection standards and the technical
control to design the changes. It is also responsible for the coordination of quality
improvement activities and the management of calibration of the measuring equipment in the
factory.

The Market Quality section, which analyzes the customer requirements, coordinates
the remediation activities and reports the quality levels of the market vats.

The Part Quality section is responsible for the quality of the parts of the new model
and for the PQ of the series production; Carry out supplier audits and carry out quality
improvement activities during the mass production and localization together with the
Purchasing Department. It is also the responsibility of the department to carry out the
inspection of the parts, the analysis of the parts problems in the factory and the
implementation of the remedial actions.

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3.5 Marketing

Product: Unique technological and other features Honda offers different models of
cars, motorcycles, lawn mowers and power equipment. Honda usually has stylish curves and
interior designs. Engines are often considered to be one of the most powerful vehicles in the
automotive industry.

Price; varies according to the model: in general, the price strategy is moderate and for
the upper middle class but some are more suitable. But they value the money with the engine
change and the features they have. In addition, Honda has efficient, convenient and efficient
service facilities.

Location: Honda Motor Co. has production companies in different countries in Europe,
one of which is most important in Gebze, Kocaeli-Tukey. There are a lot of dealers in 32
countries in Turkey, everyone is buying these places easily by car.

Target Market

In general, Honda Motor Co. has targeted upper class groups, upper middle class and,
middle class and have been very successful in maintaining its target market and providing with
the products of their needs.

4. Manufacturing
Honda Turkey Inc. plant consists of departments such as Paint, Assembly, Welding,
Press, Quality Improvement, Component Quality, Materials Management, Auxiliary Facilities
and Maintenance, Business Security and Environment, Purchasing, Production Planning and
Cost Control. Since May 24, 2006, the factory has been operating according to the two-shift
system, and since 2008, it has a production capacity of 50,000 vehicles per year.

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4.1 Press Department

The press department was
established in order to produce sheet
metal parts in the plant in the factory
increasing production capacity. The
department, which was set up in 2008,
passed the activity in early 2009. Thus,
production at the factory begins at the
press department. The sheet metal parts
previously supplied from the suppliers
are manufactured in the factory by the
press.
Picture 1 Honda Turkey Co. Press Line [15]

4.2 Welding Line

The sheet metal parts

pressed in the press section
are brought to the welding
section. The sheet metal parts
are joined with the point and
mig source in the welding
section and the body of the
tools is formed. In the
welding line, the body of the
vehicle is formed by using a
suspension source and a
resistance source. There are
Picture 2 Welding Operator in Action [16]
basically 4 lines:

1. Sub chassis preparation line

2. Side frame preparation and frame joining line
3. Door / Hood preparation line
4. Body finishing line

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4.3 Paintworks

The car bodies going to the paint shop after the welding section are first immersed in
cataphoresis. Coating with electrolysis prevents corrosion and makes lining easier. Applying
mastic and PVC lining. Last coat and varnish applied. Among all these processes, the body
enters the 150-degree furnaces. The final checks are being sent to the body assembly line,
which ends with pasta and polish.

4.4 Assembly Line

Approximately 2700 pieces, which differ in size and type in every model and type, are
assembled in this section according to the installation and tightening standards. The assembly
department consists of two lines: vehicle assembly and engine assembly.

Picture 3 Assembly Line [17]

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Engine Assembly Line, consists of 15 stations. Generally, the main elements of the
motor are processed. For example, the engine block is connected, the crankshaft is installed,
the crankshaft piston connection is installed, the carburetor is installed, the clutch linings and
the transmission are installed. Cylinder lid, engine front lids are fitted and valves are adjusted.
After connecting the main elements, the outer elements of the engine called Engine Dress are
connected. These parts are in general terms; traverse, swing arms and electric steering. Bolt
clamps are made with high torque equipment.

On that line, 6 different Honda CIVIC engines produce. Every day, 1 engine is running
as an example. 1 engine in every 5000 engines is sent to England for a motor test.

Picture 4 Honda UK Engine Assembly Line [18]

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Vehicle Assembly Line, is divided into two parts, trim and final line. In the trim line,
scratch and deformation control are performed first. According to Manifesto, the parts that need
to be caught are determined and inserted. Trim line consists of 19 stations and one or more
operations are done in each one. These transactions are generally; bumper speacer, shock
absorber, headlamps, lamps and brakes. The rear suspension is being loaded, the evaporating
petrol parts and tires are fitted. Brake pipes, master-cover, SRS, antenna elevator and rear seat
locks are fitted. Equipment such as EPS, sunroof, pedals, curtain airbag, side curtain sensor,
ABS, fuse box, seat belts, parking sensors, airbag, tape and mirrors are installed.

Picture 5: Honda Turkey Trim Line at Vehicle Assembly Line [19]

The vehicles coming out of the trim line enter the final line. The engine is installed in
this line. ABS cable, brake hose, wheels, muffler, exhaust and heat shields. Headlamp height
adjustment and steering, handbrake, gearshift connection. Electric control unit, studs, rear -
front seats are fitted. the sealer is pulled to the glass by the robot. The driver's airbag, air
conditioning, blinds, windshield wiper arms and radiator and squeegee liquor are installed. The
gates that are pulled out of the trim line are installed in the factory. The petrol tank is filled and
the vehicle is being operated for the first time by immobilizer.

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After the vehicle is final checked, the vehicle is sent to the quality improvement
department. Balance adjustment and testing of the vehicle is performed in the quality
development department. Vehicle quality improvement department is waiting for the shipment
to be ready for shipment after the vehicle has been tested for brakes, waterway and sound.

5. Summary
The Honda Türkiye where is my internship took place was very useful in recognizing
the parts used in vehicle production, seeing which parts of the vehicle were used, and
experiencing vehicle assembly. I saw that vehicle technology is in a very rapid development
and that we are constantly working on component improvement with the supplier industry. In
addition, although I do not have knowledge in management, human resources and marketing,
I learned many things about all the organizational departments and found opportunities to
improve myself.

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6. References

[1] https://tr.wikipedia.org/wiki/Honda

[2] http://world.honda.com/profile/history/

[3] https://www.mcnews.com.au/2016-motorcycle-sales-figures-first-quarter/

[4] Honda Türkiye Handbook

[5] Honda Türkiye Finance Department

[6] http://www.mbs2002.org/Pres2002/Yoshinotxt.pdf

[7] http://world.honda.com/profile/philosophy/

[8-11] https://honda.com.tr/honda-felsefesi

[12-13] Honda Philosophy and sustainability. (Page 17-19)

[14] https://link.springer.com/chapter/10.1057/9780230583702_3?no-access=true

[15-16] Honda Türkiye Çevre Raporu 2012

[17]https://honda.com.tr/App_Assets/Models/beeb6ad0bdee427fa9b034dbd5501ac7/cevrerap
oru2007.pdf

[18] http://www.toyotanation.com/forum/8-general-discussion/1122802-7-reasons-why-we-
buy-japanese-instead-american-cars.html

[19] http://www.radikal.com.tr/otomotiv/honda-mitsubishi-electrici-secti-1439585/

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