AMF was known for its leaking engines, unreliable performance, and poor customer service.
Taken together, AMF’s heavy handed management style, labor hostility and the Milwaukee strike, all contributed to the decline in the quality of Harley Davidson motorcycles.
WHILE HD DEALING WITH DIFFICULTIES, WHAT KIND OF CHANGES CONTINUED IN THE INDUSTRY?
While Harley bikes experienced growing quality problems, Japanese bike manufacturers were steadily expanding their reach into the high end motorcycle market. As a result, Harley was selling more motorcycles than ever before, but at the same time, it was losing market share to better quality and less expensive …show more content…
From the start, Harley’s new owners introduced a variety of dramatic turnaround measures that ensured the company’s survival. First, Harley cut its work force by 40% and reduced the pay of all its salaried employees by 9 %. Harley’s new owners invited the union leadership to inspect the company books, thereby facilitating close cooperation between labor and management. Subsequently, Harley managers, engineers and union leaders went on a plant tour in Honda’s motorcycle facility in Marysville, Ohio, seeking to study Japanese manufacturing and management techniques and import them into Harley’s Milwaukee and York plants. Finding out that the Honda’s assembly line was near and uncluttered with hardly any parts or components visible on the shop floor (by contrast to Harley’s which was always littered with parts and material). Beals and his associates were determined to adopt Honda’s assembly methods in their efforts to smooth workflow and thereby reduce costs, increase productivity and improve quality.
JIT: Then, they began to implement the lean production system instead of mass production system which