At the 2nd edition of the Technology Senate- North Edition, Rajeev Taneja, Chief Information Officer (CIO), Honda Motorcycle and Scooter India (HMSI), shared the detailed journey of HMSI’s digital transformation in manufacturing. This journey is a transition towards Industry 4.0-centric smart factory operation that relies on advanced technologies for better efficiency, flexibility, and environmental-friendliness of production.
Through a series of strategic initiatives, Honda Motorcycle and Scooter India (HMSI) has redesigned its business processes to maintain competitiveness in the automotive industry while adopting to sustainability and security standards in the global market.This transformation reflects on the growing importance of change management to innovate and modernise their operations in order to keep pace with the rising demands of a digital-first world.
To stay competitive in the market, Honda has announced its global vision that includes achieving carbon neutrality for all of its products and services as well as ensuring zero traffic collision facilities involving Honda vehicles across the globe. With more than 60 million happy customers and an overall production capacity of over 6 million units annually, Taneja asserted that HMSI has become the second-largest two-wheeler manufacturer in India and is striving to become number one. He further continued with an elaboration of what it means to have a smart factory and how such sort of operation is made possible by the use of numerous technologies.
The foundation of a smart factory is integrated automation, which connects machines and processes to ensure seamless and efficient operation across the production line. Data exchange is a necessary factor that allows information exchange across systems and devices, real-time monitoring and control allows for immediate insights into the factory’s operations. With the capacity to implement flexible manufacturing lines, the new production lines can facilitate quick adaptation to changes in the demand of the production. Flexibility in manufacturing lines enables quick adjustments to changing production demands, while predictive maintenance minimises downtime and maintains continuous production. In addition, smart factories are devised for supply chain resilience, strengthening the ability to adapt to disruptions. Aligning with global sustainability goals, Taneja emphasised on sustainability and energy efficiency that aim to reduce energy consumption and its impact on the environment through manufacturing processes.
Therefore, to transform factories into smart factories with connectivity and adaptability, key advanced technologies are used, such as Industrial IoT, that can be used to connect machines, sensors, and devices to collect and analyse data for real-time monitoring of production lines, asset tracking and inventory management. Big data and analytics uses historical data to help optimise operations, while AI and machine learning automate decision-making and predictive insights. Cloud computing ensures scalable data storage and processing, enhanced with edge computing for low-latency data management. Robotics and automation including collaborative robots (cobots), Autonomous Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), further increase efficiency and flexibility and make the factory environment smarter.
The digital transformation journey at HMSI
Taneja went on to give the breakdown of HMSI’s digital transformation journey into phases, where every phase involves technology in addressing specific objectives of the company.
Phase 1: Digitisation
The first key change process in the transformation journey was digitisation where HMSI replaced analog systems with digital systems. This transition involved the automation of document approval to minimise delays and improve the efficiency of approvals. Additionally, the introduction of digital signatures ensured compliance, security, and accountability. It was the initial phase that the company adopted for a paperless office, where documents were stored electronically, enhancing efficiency and environmental conservation.
Phase 2: Digitalisation
Establishing the framework of digitisation, HMSI progressed to the phase of digitalisation where the company aimed at automation and enhanced its profit margin and cost control. One significant initiative was the procure-to-pay automation system, which streamlined the procurement process by automating vendor identification, purchase orders, invoicing, and payments. This process, integrated with technologies like Optical Character Recognition (OCR), minimised human error and increased compliance.
The introduction of real-time dashboards and business Key Performance Indicators (KPIs) enabled top management to make data-driven decisions. These dashboards offered an insight into key business indicators including production, dispatch, and financials which would help leadership keep a track on performance and possibly address emerging operational challenges in good time.
Phase 3: Embracing Industry 4.0
As HMSI advanced towards becoming a smart factory, the company began implementing Industry 4.0 technologies at scale. This included the use of Industrial IoT (Internet of Things) to connect machines, sensors, and devices, enabling better monitoring and management of the production line. Cloud computing enabled HMSI to access flexible data storage and powerful data processing for the continuous expansion of the business and edge computing ensured low-latency data processing for real-time decision-making. Also, with the help of predictive analytics, the company was able to predict equipment failure and perform maintenance before a breakdown occurred, thus increasing levels of productivity.
Moving towards Industry 5.0
While progressing through Industry 4.0, HMSI aimed for Industry 5.0 – a concept for the next stage further from machines and automation toward human-centricity, sustainability, and robust manufacturing. Industry 5.0 aims to balance between advanced technologies and human collaboration, fostering innovation and creativity. “For HMSI, this philosophy was incorporated in the continuous process of digitalisation while maintaining the use of human skills and technology to foster a sustainable and progressive manufacturing environment,” said Taneja.
Key technologies implemented at HMSI
Paperless office and document management
To streamline internal operations and improve storage, HMSI adopted a Document Management System (DMS). “This system gave us the benefits of digital storage of documents, improving retrieval speed, reducing physical storage needs, and ensuring data security. Additionally, it facilitated compliance with global retention policies, including the long-term storage of quality-related documents,” mentioned Taneja.
Smart workshop concept
Wanting to improve the customer experience, HMSI introduced the Smart Workshop. This allowed customers to monitor progress of their vehicle service on a real time basis. From job card creation to final delivery, customers received SMS alerts with links to live updates, improving transparency and satisfaction.
Power BI for employee empowerment
HMSI also adopted Power BI to improve employees’ engagement and performance. The specific objective aimed at allowing the business users to develop their own dashboards thus reducing the company’s reliance on IT departments and also allowing employees to analyse their data responses independently.This gesture cultivated a culture of innovation and efficiency.
Low-code/no-code platform
HMSI adopted a low-code/no-code platform using Oracle APEX to reduce development time and empower non-technical users. This platform facilitated rapid application development, enabling business users to easily deploy solutions and with minimal dependence on the IT department.
Traceability through QR codes
HMSI also came up with a part traceability using QR codes. Taneja informed that these codes were applied on parts purchased from vendors and on a product developed in the factory. This made it possible to monitor each part right from the manufacturing process up to the time of delivery, ensuring quality control and enabling quick action in the event of a recall.
Factory IoT network
To pursue higher production performance and to capture real-time performance of the plant HMSI has established the Factory IoT Network. This network, separate from the data network, connected machines and systems, allowing for real-time monitoring, predictive analysis, and enhanced collaboration between human workers and machines.
The digital transformation roadmap
Taneja asserted that the digital transformation at HMSI was guided by a well-defined roadmap, starting with strategic planning and moving through to implementation and continuous refinement. The company initiated digital ambition workshops to align with business teams, conducted scorecard assessments to track progress, and developed a five-year roadmap for the transformation. This transformation was carried out in phases as mentioned, focusing on profitable growth, customer and employee experience, and operational excellence. This ensured alignment with both immediate business priorities and long-term sustainability goals.
“We started with a vision to have an intelligent and connected enterprise where data processes and people are all digitally connected to provide real-time insights for better efficiency and business reformation,” said Taneja,
Recommendations for manufacturers
Lastly, Taneja mentioned practical recommendations for manufacturers considering their own digital transformation:
Develop a digital transformation roadmap: Clearly outline objectives, timelines, and metrics.
Leverage Industry 4.0 Technologies: Invest in scalable infrastructure and secure systems.
Focus on cybersecurity: Safeguard against potential threats to digital assets.
Prioritise workforce development: Train employees to ensure the success of digital initiatives.
Adopt a phased approach: Implement changes incrementally to allow time for adaptation.
“By embracing these principles, manufacturers can position themselves for long-term success and stay competitive in a rapidly evolving digital landscape,” said Taneja.
Conclusion
Concluding his keynote address, Taneja highlighted that HMSI’s digital transformation stands out as a prime example of how technology is reshaping the manufacturing sector. The implementation of the Industry 4.0 system and the adaptation of the forthcoming Industry 5.0 by HMSI does not only improve efficiency at the workplace but also promotes sustainability, adaptability, and innovation. As the journey unfolds, HMSI provides an excellent benchmark for other manufacturers who aim to leverage technologies for intelligent and sustainable operations.