Honda atlas Cars Pakistan Limited

HONDA ATLASHONDA ATLAS CARS PAKISTAN LIMITED

Group Members

• Imtiaz Ahmad BSME01113115

• Faran Tariq BSME01113053

• Umair Tariq BSME01113126

• Irfan Ali BSME01113098

CONTANTS

• History

• Organization Type

• Organization Structure

• Departments in HACPL

• Inventory of HACPL

• Supplier Selection

• Distributers

History of the Company

• Honda Atlas Cars(Pakistan) Ltd. is a joint venture between Honda Motor Company Ltd., Japan & Atlas Group of Companies, Pakistan signed on August 5, 1993.

• Collaborations was done for the development of parts and systems for manufacture of Honda Cars in Pakistan.

• Pakistani and Japanese cultures have blended exceptionally well to form a professional team of dedicated specialists.

• HACPL keeping its promise to come up to the customer's expectations and to give them money's worth

CAPACITY, PRODUCTION & EMPLOYMENTYear ending March: 2014

Honda Atlas Cars have

• Capacity

• 60000 cars/annum

• Production

• 30,464 cars/annum

• Employees (2014)

• 1,230

MANAGEMENT STYLE

• The style of the management in Honda Atlas is consultative type.

• Employees are allow to give suggestions, but the final decision making by the top management.

• Motivation through rewards is practiced

• Control is primarily exercised by the top management but some sharing of responsibilities at middle and lower level.

MANAGEMENT STYLE

• Honda Atlas Cars Pakistan limited alwayes trying to implement Japanese System of Management

• HACPL give’s a lot of incentives to their employees

• Every Employee got a Honda car after 8year of working experience at HACPL

• Free Hospital Facility to their employee and their family

• Bonuses are given to the employee after job evaluation

VISSION STATEMENT OF HONDA ATLAS

• “Striving to be a Company that society wants to exist by sharing joys with people throughout the world.

• Creating products that maximize the joy of customers, with speed, affordability and low CO2”

COMPETITORS OF HONDA ATLAS

• There are two types of competitors if Honda atlas

1: Direct Competitors

Include Toyota, Pak Suzuki, BMW Pakistan, Nissan Pakistan etc

2: Indirect Competitors

Suzuki motor cycle, Pak hero, Yamaha, Eagle etc

ORGANIZATION STRUCTURE

ORGANIZATION TYPE

• Joint Venture Organization b/w Atlas Group and Honda Motor Company, Japan.

• The company is listed on Karachi, Lahore and Islamabad Stock Exchanges.

• The market share of Honda Atlas has shrunk to 31% in year 2013.

PLANT LOCATION

FACILITIES OF PLANT LOCATION

Favorable Labor Climate

A large number of industrial units are operating here and this along with the presence of many technical training institutions have contributed towards the provision of abundant skilled labor.

Proximity To Market• HACPL has a network of 14 dealers. Out of these, 7 dealers are

located within a radius of 400 km from the factory.

• HACPL has an edge over Indus company ( the manufacturer of Toyota) in this regard.

Infrastructure

• The place where factory of HACPL is located, is rapidly becoming an industrial zone.

• Electricity, telephone, etc are also easily available.

• Honda Atlas Cars (Pakistan ) Limited, tries to reduce the transportation cost through the following ways:

-HACPL prefer that vendor who supplies material at the HACPL's destination (plant) while remaining in suitable price and quality ranges.

-HACPL charges Ex-factory rate for its product from customers. The customers have to bear the transportation cost from plant to the respective dealer of their city.

Faran TariqPlant layout

Department in Honda Atlas Cars

PLANT LAYOUT

DEPARTMENTS IN HACPL

• Human resource

• Finance

• Maintenance

• Vender procurement

• Production

• Information technology

• Marketing

HUMAN RESOURCE DEPARTMENT

This department has three sections

• Human resource

• Administration

• Industrial relations

HUMAN RESOURCES

This section performs following functions

• Recruitment & selection of employees

• Training & development of employees

• Succession planning of employees

RECRUITMENT & SELECTION OF EMPLOYEES

• In HACPL employees are selected very carefully

• Ad is posted in Newspaper or on HACPL Website.

• Than HR department conduct an interview of every candidate who apply for the job.

• After selection from the interview HR Department also conduct a test of the candidate called psychology test and this test is about 30min long. Reason behind this test is to check that how much a candidate can bear pressure on himself.

TRAINING & DEVELOPMENT OF EMPLOYEES

• To enhance and continuously update each member’s capabilities and educate them job rotation system is used.

• A heavy emphasis is placed to provide opportunities in specialized courses arrange by the company. The objective is the same as that of job rotation i,.e expanding the skill and the knowledge of the employees.

ADMINISTRATION

This section performs following functions

• Facilitation of company guests and executives

• Employees’ Mess management

• Utilities administration

• Miscellaneous administrative activities

INDUSTRIAL RELATIONS

This section performs following functions

• To build a healthy cooperation between management and workers.

• Labor management

• The higher and Fire Policy

• Legal rights of Employees under labors act.

FINANCE

Atlas Honda has a well established finance department. It is totally computerized .it has its own system which is prepared by IT department. Finance department has further following sections.

• Finance

• General ledger

• Costing

• Taxation

• Sales

• Payables

• Payroll

FINANCEThis section deals with the Banking mattersFund management Import accounting.

COSTINGIt is an important section of finance department, which deals with all costing matters including all material, labor, and overhead costs.

TAXATIONIt deals with all tax and custom duty related affairs.

PAYABLESThis section deals with the following activities.Vender payablesInsurance payablesTax payablesOther payable

PAYROLLSThis section controls the salary system of the organization. All the system is computerized. First of all the attendance of all employees is recorded and at the end of the month salary of all employees are paid after all deductions** Tax deductions, absenteeism deductions and all other deductions

GENERAL LEDGER

Finally all the transactions are recorded in general ledgers. General ledger for each account is maintained separately. There is a computerized system, which then produce different statements.

HEALTH, SAFETY & SECURITY

• The health and safety of employees remains one of the top priorities. The effective management of health and safety hazards protects employees from harm and ensures that business complies with regulatory and legal standards.

• To ensure the above, the Company has established an Environment, Health, Safety and Security (EHS&S) Committee, which meets twice a year and they are presented with relevant considerations for ensuring healthy, safe and secure workplace.

QUALITY MANAGEMENT AND IMPROVEMENT

•Develop and maintain supplier listings.•Develop the Supplier Performance Criteria, assess supplier performance and send feedback to the key suppliers for continual improvement.•Manage the Customer Complaints and take corrective/preventive action accordingly .•Evaluation of painted, and Welded parts according to Honda Engineering Standards.•Calibration of the Tools and Equipment of the plant.• Management of Testing and Calibration Lab activities.

Irfan Alivendor vendor procurement

production departmentIT Department

Maintenance Department

VENDOR PROCUREMENT DEPARTMENT

At present, 160 vendors are working with the company. This department performs following functions

• This department is responsible for all the relations and dealing with different vendors.

• This department motivates vendors to produce excellent quality and train them to achieve the highest level of quality.

VENDOR PROCUREMENT DEPARTMENT

• This department also deals with the CKD (complete knock down).

• This department performs VIP (vendor improvement program). Under this program, the department representatives go to the vendors and train them for new methods to produce better quality at reasonable price.

PRODUCTION DEPARTMENT

• Four main products are being manufactured in HACPL in a continuous manufacturing method. And these are given below

• Honda City

• Honda Civic

• Honda Accord

• Honda CVR

HONDA CITY

Seating capacity (person) 5No of Doors 4No of Cylinders (cylinder) 4Fuel Type PetrolFront Brakes DiscRear Brakes Drum

Honda City i-VTEC Specifications

HONDA ACCORD

Seating capacity (person) 5No of Doors 4No of Cylinders (cylinder) 4Fuel Type PetrolFront Brakes Ventilated Disc Rear Brakes Drums in Disc

Accord 2.4 Vti L Specifications

HONDA CIVIC

Honda Civic i-VTEC Specifications

Seating capacity (person) 5No of Doors 4No of Cylinders (cylinder) water cooled in line 4 cylinderFuel Type PetrolFront Brakes Disc Rear Brakes Disc

HONDA CR-V

Honda CR-V 2.4 Litre Specifications

Seating capacity (person) 5No of Doors 4No of Cylinders (cylinder) i-VTEC DOHC, in-line 4 cylinderFuel Type PetrolFront Brakes Ventilated DiscsRear Brakes Solid Discs

PRODUCTION DEPARTMENT

It is very important department as it produces the main product of the company, which will eventually generate revenue. The production department has twelve different shops. Each shop is responsible for different production functions. These shops include

• Raw material shop

• Cutting shop

• Press shop

• Dying shop

• Welding shop

PRODUCTION DEPARTMENT

• CKD shop

• Switch assembly shop

• Tire shop

• Engine shop

• Washing shop

• Final assembling shop

• Inventory shop

MACHINARY USED IN HACPL

A brief list of machinery used in HACPL is given below

• Boilers

• Compressors

• Water treatment plant

• Ovens (for backing the body of cars)

• Spot welding guns.

• Two-post lifts

• G-SWAT/ B-S / S Side Slip / Shower testers

PRODUCTION DEPARTMENT

• Currently the plant has the capacity of 105 vehicles per day which is lower than that of Toyota. As for as the production level is concerned, it varies from time to time.

• It was 15 cars per day at the factory. This shows that the plant is being underutilized. There may be several reasons for this under-utilization such as weak economic condition of the country, decrease in the purchasing power of potential customers, et cetera

INFORMATION TECHNOLOGY DEPARTMENT

• Atlas Honda has a sophisticated IT system. All the departments are linked through network. Each and every department is computerized. This computerization has reduced the burdens on employees. Particularly the employees of finance department have different soft wares to support their work.

• All these soft wares have been developed by company’s own IT department. Mostly soft wares are developed in-house and in some special cases outsourcing is also being used.

MAINTENANCE

• This department is responsible for all the maintenance of the whole factory, offices and even the houses of top management. In order to provide effective, efficient and timely maintenance this department has two type of information.

• It has Machine wise spare parts report

• Machine and equipment list

• Seventeen employees are there in this department. Three are engineers and others are workers.

MAINTENANCE

It provides two types of maintenance.

• Corrective/ Breakdown maintenance

• Preventive maintenance

• CORRECTIVE/BREAKDOWN MAINTENANCE

• The same department also carries out Emergency/breakdowns of machines & equipment's and plant maintenance work. If any of the above problems occur then the concerned department sends a Work Request to this department, then this department resolves the problems according to the Work Request.

• PREVENTIVE MAINTENANCE

• In this maintenance system department tends to provide and follows a comprehensive preventive maintenance program. According to this program the department set a sequence of maintenance activities for all the machines of different production shops on continuous basis.

Umair TariqMarketing Department

Material Handling Inventory

Safety Stock

MARKETING DEPARTMENT

SALES DEPARTMENT

• It is an important division of marketing department. It is the profit center of the company. It deals with three types of sales.

INSTITUTIONAL SALE

• The company provides the direct sale to the institutions. Company provides the cars to following institutions.

• Police departments

• CSD (canteen store department)

• TCS (technology communication supplies)

• Pesticide companies

• Many others

MARKETING DEPARTMENT

INDIVIDUAL SALE

• This is the usual sale to the individuals. This usually follows the following path.

• Company Dealer Customer

EXPORTS

• Currently Honda Atlas have no exports.

MARKETING DEPARTMENT

• Marketing department is divided into three parts on behalf of its functions.

• Sale

• Service

• Spare parts

• the company has developed twenty one 3S dealers (Sales, Service and Spare Parts) twenty 2S dealers (Service and Spare Parts) and six 1S dealers (Spare Parts) network in all major cities of Pakistan.

MATERIAL HANDLING

• Material handling equipment's

• Lifts

• Hoists and Cranes

• Trucks and trolleys

• Lift Trucks

INVENTORY

Inventory is a stock of any things held to meet future demand. Inventoryis created when the rate of receipts exceeds the rate of disbursements.It is depleted when disbursement exceeds receipts.

There are three types of inventory:Raw material inventoryW.I.P. inventoryFinished goods inventory.

INVENTORY OF HONDA ATLAS

The basic objective of any firm is to minimize total inventory cost(ordering & carrying). The same is the case in Honda Atlas Cars(Pakistan) Limited. In HACPL, the whole inventory system iscomputerized. Following are the advantages of this computerizedsystem.

Updating records. Providing management reports. Automating the recording process. Re-computing decision parameters.

SAFETY STOCK

HACPL maintains a safety stock of 2 to 3 months. The reason formaintaining a safety stock is as follow:

• To protect against shortage that occur due to suppliers.

• To protect smooth and continuous operations.

In HACPL, the inventory is held in the following forms:-

• Inventory of imported parts.

• Inventory of local parts.

In order to avoid stock out, they have more safety stock of imported parts as compared to that of local parts.

SAFETY STOCK

• Shortage Of Inputs

There are special warehouse for the purpose. Both imported and local partsare stored here.

• Storage Of Output (Cars)

There is no proper warehouse for parking of cars moving out of assembly line. A place has been assigned for this purpose but there is no roof over it.

SUPPLIER SELECTION

HACPL prefer those suppliers who fulfill the following requirements:

• Provide best quality material at low cost.• Shorter Lead Times • Provide material to production plant of HACPL. (i.e. provide material

at destination). • On time delivery

These are the reasons which forces HACPL to go for local contracting.

DISTRIBUTORS

• To store the finished products, (Honda Civic & Honda City), HACPL uses both FORWARD BACKWARD PLACEMENT.

• HACPL has a country-wise network of Sales Dealers who are actively engaged in promoting the image of HACPL and its cars.