What is a NH-Circle?

1. NH-Circle Guidelines What is a NH-Circle? The basic definition of an NH-Circle is: A team of 3 to 7 associates working together to solve a Section 1: Guidelines common problem or improve a situation by using the NH-Circle step-by-step methodology. Purpose of an NH-Circle NH-Circles reflect our commitment to associate development, teamwork, and the value of people sharing ideas to strengthen our competitiveness in all aspects of our business. In the NH- Circle logo above, the circle represents NH-Circle activity around the world. The NH stands for ‘New Honda’, where associates create an understanding of ‘Now Honda’ in the pursuit of the ‘Next Honda’. Participation Eligibility § All associates are eligible to participate as members in NH-Circle activity. § The number of exempt members in a Circle cannot exceed the number of non-exempt associates in the Circle at the time of registration. § Members are defined as: - Leader - Sub-Leader - Reporter - Member Associates may be a member of 2 NH-Circles at a time § (with Team Manager approval). - Associates may only be a leader of one NH-Circle at a time. Membership is recommended to be 3 to 7 associates. § Membership cannot exceed 10 members including advisors. It is recommended that NH-C team advisors be exempt level § Associates.

2. NH-Circle Guidelines Overtime Section 1: Guidelines Each month, associates may schedule a maximum of five hours for NH-C § activities pending Management approval. § Any additional overtime needed over the 5 hours requires approval by Department Management. Training for NH-Circle activity is not considered part of the associate’s § five hours overtime. All NH-Circle members should attend Basic NH-Circle training following registration to gain understanding of the NH-Circle process and completion requirements. Team Manager approval must be obtained prior to attending an NH-Circle class. Classes are scheduled on a regular basis at the Training Center. Check with your Department Facilitator or Dept. Training Representative for upcoming NH-Circle classes. NH-Circle Forms NH-Circles must complete the following forms and turn them in to § their Department Facilitator. - NH-Circle Registration Form - NH-Circle Monthly Overtime Report* - NH-Circle Meeting Minutes * - NH-Circle Registration Update (change in membership)* - NH-Circle Activity Review Checklist* *These forms are located at the end of Section 1. - Additional forms may be required by the department. Please check with the Department Facilitator to obtain forms that are Department-specific.

3. NH-Circle Guidelines NH-Circle Theme Topics Section 1: Guidelines Examples of Theme Topics: § Improvements for plant or office efficiency - Cost or expense reduction - Improvements for plant or office work methods - Equipment downtime - Methods to guarantee or improve quality - Job process improvements - Space or inventory reductions - Material flow improvements - Prevent equipment, tool, or facilities failure - Safety improvements - - Rejection reduction Topics not suitable for NH-Circle Projects: § - Advertisement for sale of Honda products - Gen eral employment matters, HMA policies or benefits - Personal, social, economic, or political issues or concerns