Elna Blass

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Elna Blass Director, Quality
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Todays Agenda

• Well Review
• Harley-Davidsons History
• Our Come Back Story
• Our Quality Focus For Today The Future
• The Role Change has played

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Our Recent History (1970s)

• AMF owned Harley-Davidson
• Good
• Investment Capital
• Leisure Industry goal of growth
• Challenges
• Understanding our industry

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Our Recent History (1980s)

• Poor quality
• Losing customers rapidly
• Buy back from AMF
• Bankruptcy loomed
• Got down to business!

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Change

• When the wolf is at the door, things change

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1 Quality Products Services
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Quality Products Services
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2 Aggressive Marketing Distribution
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3 Customer Price / Value Perception
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4 Sales
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5 Motivated Employees
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Current

• Year-end 2002

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Unit Production
In 2002, H-D produced 263,653 motorcycles
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Earnings Growing Faster than Revenue
2002 - 8,500 employees 2002 - 4,09.0 Billion
Revenue
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Customer Loyalty
81 Extremely Likely to Repurchase a
Harley-Davidson motorcycle
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Investor R. O. I.
10,000.00 in 1986
Equals 1,415,100.00 in 2002
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Are We Watching The Signs?

• Learn from our mistakes
• Focus on all the signs
• So now our focus is onDELIVERING IT ALL

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So change Led to Success

• Without the courage to change on the part of
  every employee in the organization
  Harley-Davidson would not be here today.
• Challenge - keep the success going - not by doing
  what we have always done but by changing where we
  need to.

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Deliver It All

• New Customers
• Production Growth
• New Products Services
• Revenue Profits

• Quality
• Customer Satisfaction
• Safety
• Costs
• Brand Equity

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Quality Strategy

• Improve Product and Service Quality
• Improve Customer Satisfaction

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Quality Strategy

• Execute The Basics
• Build strengthen our quality foundation

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Quality Strategy

• Preventive
• Improving our products and services through
  process management that focuses on prevention

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Quality Strategy

• Predictive
• Deliver targeted results with confidence

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Quality Policy

• Harley-Davidson is committed to providing
  internal and external customers with excellence
  in products and services through continual
  improvement that focuses on minimizing waste and
  variability.

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Quality Policy

• Four Main Statements
• Internal external customers
• Excellence in products/services
• Continual improvement
• Minimizing waste variability

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Summary

• By Delivering It All
• Implementing our Quality Strategy
• Institutionalizing our Quality Policy

Customers will receive Quality Harley-Davidson
Experiences for the next 100 years!!!!
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Future Challenges

• How to integrate Lean Principles and Six Sigma?

• How to keep a Quality focus internally?

• How to embed a Quality thinking process?

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