The following year went extremely b

The following year went extremely badly and produced a $25m loss. After visiting a Honda factory, executives realized they could only survive by adopting Japanese total quality management practices.Ironically, these had largely been based on the work of an American,W Edwards Deming. H-D introduced three key changes. The first, 'Just in Time' delivery of parts, meant that stock and storage were reduced and that two assembly plants could operate without stockrooms. Next, H -D worked hard to break down the differences between levels: for example, top managers and line workers worked side by side to redesign the factory floor. Finally, employees were encouraged to measure quality scientifically and to think constantly about how production could be improved.