The Company

Hinopak Motors Limited was formed in 1985 by a diverse group of sponsors. These included Hino Motors Limited, Toyota Tsusho Corporation of Japan, Al-Futtaim Group of UAE and PACO.Hinopak family in Pakistan & under the guidance of our Japanese sponsors has achieved standards of quality and excellence that rival the best in the region. In recognition of these efforts, the company has received a number of excellence awards for its management practices and quality standards. In 1998, Hino Motors Ltd., and Toyota Tsusho Corporation obtained majority shareholding in the company after disinvestments by the other two founding sponsors. This decision to invest in Hinopak at a time when the country's economy was passing through a depression and the sale of commercial vehicles was at an all time low reflects the confidence our Principals have in our company and their commitment to the Pakistani market.It is the enduring success of Hinopak that has made the Hino name and symbol of quality & reliability and Hino vehicles a prize possession for its owners.By continuing to move forward and staying alert to ever-changing market & social needs, Hinopak will continue to be a successful and well-respected corporate citizen of Pakistan.

Hino Motors Ltd., Japan

Founded in 1910, Hino Motors Ltd. is Japan's oldest motor vehicle manufacturer. Since introducing Japan's first automobile in 1908, Hino has been developing and manufacturing superior vehicles that serve business and society. Over the years the range of Hino’s trucks and buses has made their mark in over 140 countries worldwide. Today Hino Motors is the leading manufacturer of medium and heavy-duty commercial vehicles in Japan and the 2nd largest in the world.In this age of high technology, globalization and advanced data communication, individual values are diversifying. Hino is dedicated to putting the customers first and maintaining high standards of quality.

Toyota Tsusho Corporation (TTC) 

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Established in 1948, Toyota Tsusho Corporation (TTC) is a trading company within the Toyota Group. TTC has an extensive network of representative offices all over the world and offers a vast variety of goods and services to its customers. As a leading player in the automotive business TTC provides additional support to Hinopak with its expert advice and knowledge of world markets.Backed by the strong network of Hino Motors, Ltd. Japan and the versatility of Toyota Tsusho Corporation (TTC) that provides us the competitive edge, we at Hinopak believe in giving our customer the very best and we pledge to continue for "Total Customer Satisfaction".

Corporate Features  Building on seventeen years of success, the Hinopak continues to play a leading role in marketing commercial vehicles with superior and advanced Japanese technology.

Market Leader in Pakistan, holding over 65% of the truck and bus market share. First Pakistani automobile company and Hino affiliate to receive ISO-9001 certificate.  Voluntary initiative for ISO 14001 certification.  First company to export buses from Pakistan. Recipient of Quality Excellence Awards. First automotive company to introduce "3S" concept in heavy-duty commercial vehicles market. First company to supply busses under "Urban Transport Scheme" in Pakistan.Recipient of Employers' Federation of Pakistan's Golden Jubilee Award for Human Resource and Industrial Relations. Recipient of Corporate Excellence Award from Management Association of Pakistan. 

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 Recipient of Employers' Federation of Pakistan's Golden Jubilee Award for "Excellence in Productivity."

Policy Statement

HINOPAK QUALITY POLICY STATEMENT

The policy on Hinopak motors is to provide customers with product and services of grade that meet or exceed requirements in areas of quality, cost and on-the-delivery. Hino’s operations are based on the quality system that meets various national and international standards for quality, reliability and safety.

Selection of suppliers, their evaluation and surveillance to be consistently carried out on the basis of scientific techniques and procedures.

Continuous education programs to be conducted for customers on proper usage and maintenance of Hino products by sales and services network.

Product behavior at user’s premises to be regularly monitored and systematically reviewed.

With the education and training given to all personal under the Total Quality Control (TQC) activities employees are made conscious of quality and are totally committed to customer’s satisfaction.

HINOPAK ENVIRONMENTAL POLICY

Hinopak Motors Limited is committed to identify and implement means and measure that would result in minimum environmental impacts from its product and every aspect of its business activities ranging from product development to production and servicing.

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Motto At Hinopak

“Strive to produce environment friendly products for our customers’ satisfaction and to provide support and cooperation to environmental preservation activities for our employees and community, to the best of our ability.”

For the sake of this Motto Hinopak Motors Limited have adopted the following objectives:

Promote pollution prevention and reduce environmental impact by proper handling and disposal of wastewater. Solid waste hazardous substances, gaseous omissions and reduction in noise impact.

Conserve energy and other resources.

Comply with all the applicable environmental legislation of regulation and cooperate with the concerned authorities.

Improve our environmental performance continuously by regularly reviewing objectives. Conducting audits and management reviews under our Environmental Management System.

Educate train and motivate employee and interacted parties to conduct activities in an environmentally responsible manner and as per the company’s environmental which is also available foe the public.

Hinopak Offers Its Customers

It has always been the endeavor of Hinopak Motors to provide the best Product Support Backup to its values Hino customers throughout the country.

The company has a comprehensive network of its own offices, Service Dealers and Spare Parts Dealers strategically located throughout the country. The company also maintains a fleet of mobile workshops, which provide prompt and efficient back-up service to Hino customers even at the remotest of locations.

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Company's service personnel, service dealers and customers receive regular training at Hinopak to keep then abreast of the rapid technological developments, thereby enabling them to provide Quality after Sales Service to Hino customers, thus achieving the highest level of Customer Satisfaction.

The company also maintains an inventory of Genuine Spare Parts at its own warehouses, besides the Spare Parts Dealers who directly import Genuine Spare

Parts to abundantly feed the market needs. This ensures that Genuine Spare Parts are readily available throughout the country.

The company is the first in the commercial vehicles sector to start the establishment of 3S Dealership network, which offers Sales, Service and Spare Parts facilities all under one roof.

Export Market

On successfully establishing itself as the market leader at home. Hinopak proceeded to explore its product potential for the export market. This quest met with initial success when in 1990 Hinopak exported its first bulk order of buses to U.A.E.

Customer confidence and satisfaction were reflected by various follow-up orders for more buses; this entry into the export market was an important milestone for Hinopak, making it the first exporter of vehicles from Pakistan, thereby opening an important chapter in Pakistan’s automotive industry.

This encouraged the team to achieve even greater heights in production quality and performance. By successfully meeting set international standards in export quality and with the achieving of ISO-9001 certification, Hinopak can confidently

look ahead to tapping new markets for its range of vehicles, to usher in an exciting new era in the automotive industry and fulfill its commitment towards the economic growth of Pakistan.

Principles Of Organization

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Principles form the basis of every organization. It is on this foundation upon which the whole organizational structure is standing. The success of the organization depends upon how effectively the principles are practiced there. Hino, thus touching the pinnacle of success, with transparency in operations, active employee involvement and empowerment, respect for fundamental principles and rights at work, mutual trust and dependability lie at the core of the company’s relationship with all its employee, vendors, dealers and customer. To further enhance there capabilities to be a role model in the automotive industry.Hinopak motors believe that people are keys to business success. And the company and its staff are committed to taking initiative to serve its customers, shareholders, and community. Company wants its presence in society to be constructive and positive.

“Let’s take a glance at our performance this year”

BEST PRACTICES OF CORPORATE GOVERNANCE

The company has complied with all the material requirements of the code of corporate governance issued by the Securities and Exchange Commission of Pakistan.

Structure & Internal Ecology

At Hinopak Japanese introduced the “Japanese Work Environment” which is observed to be a blend of organic and mechanistic; emphasis is given to traditional approaches like Unity of Command clearly defined Chain of Command and uniform implementation of rules and regulation.In this structure, human factor is not neglected. That is why the attitude of employees is very positive, we have observed sense of understanding between the employees and managers and they are found cooperative to each other. They have adopted an open work environment the management and staff they all work under one roof in an open work environment. This structure has benefited them in many aspects like their efficiency has increased, they don’t have to waste their time contacting managers and correspondents, unity which is an important aspect for better working of employees, has increased. The managers of the

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different departments can also easily contact to each other. This increased the efficiency of the organization.

Management at Hinopak

Hinopak is one of the leading firms in the automobile industry of Pakistan. It considers planning as the primary function of management, which formulates futures course of action to achieve specified results.

At Hinopak, planning begins at the top of the organizational pyramid and filters down. The top management’s job is to state the organizations mission, its long term goals with the resources expected to be available. The middle management determines the objective and plans, the course of action at the departmental level to achieve the desired results, within allocated resources.

The lower management is involved in operational planning and determines how specific tasks can best be accomplished on time, and is mostly involved in implementation of the policies formulated by the top officials.The decision-making authority at Hinopak has given to its managers and supervisor’s extent as it allows them to make working plans related to the assigned job. These plans are then discussed with the departmental head and after taking their consent further proceedings are made.

Span Of Control

In Hinopak the number of subordinates reporting directly to a supervisor is not fixed. Depending upon the nature of the job, the individual and the department, performs. A supervisor can either have a narrow span of control. However in production department span of control is wide.

Specialization

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The concept of specialization is very rare in Hinopak. For hiring purpose, they do demand specialization. Hence to keep the staff in tune with the times and as a part of the general policy of the pursuits of excellence, Hinopak organizes and conducts regular training programs catering to all levels of employees.Hinopak provides adult literacy classes. A skill development courses for workers, “In-house training” of company, personnel along with on the job training “Job rotation”. “Job enrichment” and “training”. Under the guidance of Japanese expert. More over selected managerial staff and workers are sent to Japan as apart of overall management development programs.

Executive level personnel also participate in the courses at professional institutions like “Pakistan Institute of Management (PIM) that broaden their out look and introduce innovative methods of thinking and approach. The purpose behind this training is that employee should not suffer from boredom and should always be motivated all time as repetition of task can lead. This motivates the employees along with providing him with an incentive to learn more. Besides, being beneficial and encouraging for employee, this practice benefits the organization as well.

Informational Flow In Hinopak

Activities linkage across department at similar level is also very essential for information to flow in organization. This communication provides the additional means for processing the information in an organization. And the exchange of information at similar level facilities in communication mechanism than this provides also a supplement for relative methods of formalism.

The Hinopak commonly acquire to process more information when they face changing technology, or environmental uncertainty. The Hinopak has also realized the importance of informational system and they have developed their own website. And to make the communication easier among the co-workers company has developed PC sharing system. The company has also provided the internet and computers to its employees that they can easily contact with each other without wasting much time.

Lateral relations is also one of the efforts being used for facilitating the communication through communicating and problem solving with peers within the department and units rather then referring the most issues for facilitating the

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communication. Hinopak has the concept of the teamwork, workers in different teams are assigned different task to perform.

Degree of Formalism in Hinopak

For the successful achievement of goals this is necessary for all Organization that they must have links of activities at the top of organization with those at the middle and lower levels. Without this coordination, various parts of organization may have problems working effectively together. Here are many ways through which coordination can be facilitated among the workers. Hinopak has both formal and non-formal ways.

Company has written policies, rules, procedures, job description and other documents, which specified action that has to be taken and action which are prohibited under some particular consequences.If the department has problems or some ideas then it is discussed with the employees and they are given an open opportunity to for expressing their views. Direct contact allows the management, executive and all staff members designated at all levels of management to coordinate directly

Target Setting

In target setting organization follow traditional approach and management does not involve employees in the process of target setting. Top management set targets and workout strategy and action plans to achieve those targets. However employees can give their suggestions through a proper channel but in most of the cases management uses employees as a tool of implementation.

Departmentation

The departmentation is done on the basis of function performed in organization.Hinopak can be divided into six major departments:-

PERSONNEL & ADMINISTRATION.

FINANCE & MIS.

SALES &MARKETING FUCNTIONS.

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PRODUCTION.

ASSEMBLY OPERATION PLANT (AOP) BODY OPERATION PLANT (BOP)

QUALITY ASSURANCRE.

PROGRESSIVE MANUFACTURING .

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ORGANOGRAMPERSONNEL & ADMINISTRATION DEPARTMENT

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PERSONNEL AND ADMINISTRATION DEPARTMENT

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Faseeh-ul-Kareem Siddiqui Director HR & Administration (QMS Representative)

M. Akram DGM HR & Administration

M. Zaman Khan Manager Industrial Relations

Clarita Ahmed Human Resource Development Manager

M. Ziaullah Fire & Safety Officer

M. Khalid Personnel Executive Medical Aid (BOP)

Amir Mirza Executive Admin & Protocol

S. M. BukhariExecutive

Administration

M. Ali Executive HR

M. Khaliluddin Executive HR

The head of personnel and administration department believes that employees are assets of the organization and key to business success. Under his leadership department is striving to improve the quality of HR so that the organization can face the market challenges. HR department with the help of other functional departments heads monitor working and identify problems faced by employees in discharging their duties and try to remove those hurdles.

MANAGERIAL FUNCTIONS AT PERSONNEL AND ADMINISTRATION DEPARTMENT

The personnel and administration department is compromised of three main units, which are as follows;

Personnel Department. Administration Department. Human Resources Development Department.

Personnel DepartmentThe personnel department is performing lots of tasks that are mentioned below;

Maintaining Staff Data. Recruitment. Performance Appraisal. Training & Development. Budgeting. De-recruitment.

MAINTAIN STAFF DATAAt Hinopak limited there is a personnel file of each employee. Personnel department maintains all these files. These files contain information like appointment letter, performance appraisal, leave records, different types of memorandum given to employees. Personnel department also maintains record of application received for job. All such applications is kept in record for at least two years, if the job is created in the organization the department scrutinize the application and call appropriate person for the selection process. This only does not save time but also save the cost on the whole recruitment process.

RECRUITMENT

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At Hinopak recruitment is done in both ways that is internally and externally but in either situation the process is simple, convenient and effective.

Internal RecruitmentIf a job is created or vacated the personnel department first tries to find a suitable person within the organization, if the person is there he is interviewed and if suitable is transferred or promoted to the new post. In most of the cases this process is considered as formality.

External RecruitmentIf there is no one found fit for the particular post then the Personnel department tries to fill the position externally and for this purpose department first scrutinize

previously received application and call applicants for the selection process otherwise the department releases an advertisement in the national press.

Recently department experimented a new method of attracting capable applicant and instead of going to media it sends a letter to various institute that are providing training and ask them to mention jobs on their notice board.

PERFORMANCE APPRAISALObjective standards are adopted for higher level management where as subjective standards is adopted for the rest of organization levels. This gives an effective tool for appraising the performance of higher level management while performance of lower level is evaluated individually, for this purpose performance appraisal report is prepared for every employee in the following area;

Quality of work. Knowledge & Experience. Punctuality. Ability to manage things.

On the basis of performance appraisal reports decisions are made for rewards, training and De-recruitment etc. a similar performance appraisal of new employee is done for confirmation in service.

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DEVELOPMENT & EVALUATION

TRAINING & DEVELOPMENTAt Hinopak employees are broadly categories into two groups one which are performing technical jobs like engineers etc and those who are performing non-technical jobs. Performance appraisal system identifies areas where employees of both groups required training.

JOB ROTATIONJob rotation is not a part of training programme however at times it is done to introduce new employees to various kinds of work perform within the department and organization.

JOB ANALYSIS & DESCRIPTIONWith the help of different functional department, personnel department performs functions of job analysis and prepares written description of duties for various jobs.

DE-RECRUTMENTAt Hinopak, management has result oriented approach for dealing with their employees. Hinopak believes that performance of each individual contribute inoverall success of organization. Performance appraisal system identifies employees whose performance is not up to the mark. Personnel department analyzes each case and ascertains the reason of employee’s unsatisfactory

performance. If it is due to lack of skills department arrange training courses for them.The employee’s at Hinopak are not treated as a waste paper and due time is given for the improvement.

TECHNICAL TRAININGHinopak has setup a technical training program in which company workers are imparted comprehensive training in relevant trade and skills. This program has been accredited and register with Sindh Board of Technical Education (SBTE) and the workers who complete and pass this course receive certificates issued by the board. Currently a skill development program is being conducted to provide basic computer knowledge to the employees.

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Administration Department

Administration unit at Hinopak bridges the gap between employees and the management. It defines the position of employees, their duties and their relationship with one and other. It perform functions like formulating work hours, break time for lunch and prayers, arrangement of transportation, maintaining good working environment for motivation of employees, plans and arranges recreational activities etc.

COMPENSATIONWorkers performing their jobs in company achieve not only wages for their tasks but they also obtain some other benefits which are as follows;

Along the gross salary permanent workers are provided with other benefits too.Workers are provided with transport facilities.

Permanent workers are provided with gratuity funds etc, and special bonuses are given to them.Workers are also provided with “workman compensation” incase of death.Permanent or total disability compensation is also provided to the workers. This percentage is according to the designation.Loans are provided to the employees of the company to facilitate them the purchase of household and motorcycles and these loans are repayable over a period of five to twelve years.Retirement benefits are also provided to the workers but to due after the completion of a prescribed period of services.

STAFF RETIREMENT BENEFITSThe company operates an approved funded gratuity scheme for all its employees. Contributions are made to the scheme on the basis of actuarial valuation. Annual contribution to the fund at the rate of 8.33% has been made on the basis of actuarial recommendation.Projected unit credit (PUC) actuarial cost method, using following significant assumptions, is used for valuation of above-mentioned funded scheme:

Expected rate of increase in salaries 6% per annum. Expected rate of income on investment 7% per annum. Discount rate used 7% per annum.

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The company also operates a recognized provident fund scheme for its employees. Equal monthly contribution of 10% of basic salary is made by the company as well as its employees.

Human Resource Development Department

An organization is only as good as the people who work in it. They are more important than technology and machinery employed by the company. Hence to keep its staff in tune with the times and as a part of general policy of the pursuit of excellence, Hinopak organizes and conducts regular training programs catering to all levels of employees.Executive level personnel also participate in course at professional institutions to broaden their outlook and introduce innovative methods of thinking and approach.Hinopak has setup a technical training program in which company workers are imparted comprehensive training in relevant trade and skills. This program has been accredited and registered with Sindh Board of Technical Education and the workers who complete and pass this course receive certificates issued by the Board.Therefore by opening new avenues of technical and managerial development and improving existing skills, Hinopak has guaranteed its continued growth in the 21st century.

Hinopak also presents a model of labor-management relationship based on mutual trust and respect and a strong commitment of employees union and management to work together to improve enterprise productivity and performance.

PRODUCTION DEPARTMENT

Since the environment affecting trucks and buses continuos to change, our product design and development division constantly works to quickly respond to a variety of issues. Hinopak makes the most of development and design by making constant efforts to gain information from a wide range of customers and the market. Hinopak can create new and original designs because its designers are customer oriented and are also alert to developing trends.

By implementing simultaneous engineering methods, Hinopak is able to supply attractive products in a timely manner. This is done through a “Down Stream

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Process” in which related divisions participate for the very initial stage of development and by actively using advanced technologies, such as CAD/CAE systems.

Hinopak is baked by nearly 90 years of Hino’s experience and research dedicated to building a wide range of superior quality vehicles. The objective is to achieve optimum efficiency in on time production and delivery. As a result of the induction of latest technology, Hinopak’s plant is equipped with the most advance facilities for vehicles assembly and the fabrication of bus body and others specialized super structure. Apart from being a prime force in the field of medium and heavy vehicles, Hinopak is pioneer in engine and axle assembly

ASSEMBLY OPERATION PLANT (AOP) Hinopak's vehicle assembly plant has an efficient and integrated design layout, which comprises CHASSIS assembly lines, engine and axle assembly plants, paint booths and ovens along with other component manufacturing facilities. This plant is entirely geared to ensure that quality is built into the product at every stage. Special emphasis has been given to the working environment to achieve the ultimate in quality and productivity.

BODY OPERATION PLANT (BOP)Hinopak's bus body fabrication facilities are also housed in a modern plant, with paint booths and baking ovens. There is a press shop and a fiberglass reinforced plastic unit for the manufacture of various types of components such as front and rare domes, seats, grills, dashboards and interior trim items. The plant is feared for the production of various bus bodies required for city and intercity travel.

The Bus Body Plant has a design section where Japanese and Pakistani engineers work together to perfect the finest details in the modernization and improvement of existing facilities for the design of new body structure. Trained draughtsman, proficient in the use of both manual and computer aided design (CAD) methods are also important members of the Hinopak design team.The team is continuously meeting specific customer needs in bus bodies and specialized vehicles and has pioneered a new breed of buses and specialized vehicles that incorporate innovative styling, safety features, passenger comfort and superior finish.

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FINANCE & M.I.S DEPARTMENT

FINANCE DIVISION

In Hinopak finance department is performing all the function, which is required to run an organization business since it is hard to achieve the desired objective without the pro0per availability of financial resources. Money is involved in every step the scope of finance department is considered very wide. The head of the finance department is General Manager Muhammad Saleem Fudda, who looks after the department affairs with the assistance of senior managers of finance. The financial management at Hinopak undertakes policy making, planning, decision making, coordination, control of the process of securing adequate resources, and ensuring their safe custody.The work of finance department is sub-divided into four units, headed by the senior managers.

ACCOUNTING REPORTING AND MIS SECTION BANKING AND TREASURY SECTION AUDIT, TAXATION AND PAYROLL SECTION COST CONTROL AND PURCHASING CONTROL

MANAGEMENT INFORMATION SYSTEM DIVISION

ELECTRONIC DATA PROCESSING In Hinopak motors LTD MIS department is work as electronic data processing, which is, working under finance department the head of the department is a senior manager.Functions performed by the MIS are

Software development.

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Hard ware trouble shouting Administration of network

SOFTWARE DEVLOPMENTDepartment has developed data base soft ware according to need of organization through these programmes department has established a centralized information system which can be used by different departments

HARDWARE TROUBLE SHOUTING This is a job of MIS department to resolve hard ware problems of all the units of the organization if arise.

ADMINISTRATION OF NET WORKIn Hinopak Motors LTD, there are two Local Area Networks (LAN) working, one at head office and other at plant. These local area networks are linked with each other through PTCL Routers which establish (WAN) MIS department perform net work administration and resolve problems if arises.

SALES & MARKETING DEPARTMENT

MARKETING DIVISIONManager marketing looks after the affairs relating to marketing like advertising, market research, distribution etc.

AdvertisingDepartment does not have its own advertising unit and takes the job from advertising agencies. The task of advertising is assigned to any agency, which seems fit for that but it is tries to stick with one advertising agency.For advertisement company use billboard, neon signs etc. Advertisements are also published in national press on regular basis.

Market ResearchThe task of market research is performed by department it self although there is no separate research unit department’s staff regularly visited in to market and collects various type of information and prepares reports that are submitted to top management. Since organization has horizontal communication these departments share collected data and information with each other.

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Network Of DistributorsHinopak motors has countrywide network of distributors and dealer’s .As the office of transport companies are located mainly in Karachi, Lahore, Islamabad Multan Faisalabad, and Peshawar. Company mainly focuses on these cities.

CompetitorsHinopak is the major shareholder in the heavy vehicle market; however there are other assemblers who are in the business. Hinopak reckon Gandhara Nissan Diesel LTD, Mazda, Toyota, Isuzu, etc as its competitors in the local market.

SALES DIVISION

Hinopak motors have three types of sales;

Individual sales. Contract sales. Institutional sales.

Individual sales are done through dealers but contract and department does institutional sale itself. The major institutional customers are Pakistan Army, Pakistan Navy, Pakistan Airforce, Punjab urban Transport Corporation and City district government Karachi, SUPARCO, etc. Sales ProcessThe first step of the sales is booking of a particular vehicle. The customer paid 10% of the total price and the finance department issues the invoice to them. When vehicle is ready for delivery customer paid remaining amount and the finance department issued final invoice to customer and the customer take the delivery and the process is completed.

Product Support And After Sales Services

Hinopak has been striving to achieve total customer satisfaction by not only providing them with the widest range of bus and Turks according to their needs but also by pioneering such concepts as mobile work shop, country wide spare

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Parts warehouses, 3-s dealerships, free training for mechanics/drivers and free service camps.

The company’s commitment to after-sale service and environmental protection was demonstrated through free service camps held in remote areas around the country. The owners and drivers alike benefited from these camps. More than 500 vehicles were inspected free.

QUALITY ASSURANCE DEPARTMENT

The basic difference between a good company and a mediocre one is Quality Control. A good company makes sure that everything it manufactures and markets is of a uniformly high standard. Hinopak is such a company

Hinopak Quality Policy is not confined to product quality only but applies to all aspects of the organization. It aims at providing products and services that meet or exceed requirements in the area of quality, cost and on-time delivery. This is achieved through proper selection of suppliers, customer education, training at all levels and monitoring of product behavior.

Hinopak has a full-fledge Quality Assurance Division (QAD). Measures to prevent quality problems through process control are given emphasis and Hinopak QAD guarantees quality is built into every component, part and process starting from the product development stage including our vendors' premises and right up to delivery to the customer. Hinopak has also developed an effective feedback system from both the assembly line and the field force, which is instrumental in eradicating shortcomings and improving the product quality on a continuing basis.

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Recurrence proofing is regularly conducted to ensure that the best quality product is provided to the customer at all times.

Total Quality Control has been in force in Hinopak since 1992 when a network of 27 QC circles was established to resolve problems from the worker level upward. By now, after years of practical experience, our Quality Control System is performing commendably, adding quality at every stage of production.

PROGRESSIVE MANUFACTURING DEPARTMENT

It is the policies of the Government of Pakistan that automobile companies should gradually reduce their dependence on foreign made vehicle component and obtain more and more such parts locally.

In order to speed up this process indigenization program for trucks and buses, Hinopak has established an in-house Progressive Manufacturing Department (PMD), which is engaged in developing local vendors for the manufacturing of vehicles components.

Hinopak has gone a step further and is cooperating with and supporting many independent parties engaged in the manufacturing of local components. The highly trained and experienced engineers of Hinopak maintain close supervision over these vendors, guide them and ensure that the quality of components supplied is at par with those manufactured in Japan.

The transfer of technology by Hinopak and guidance of highly qualified Japanese automobile experts has resulted in stringent quality control at the vendors’ level. By supporting these local vendors, Hinopak has created jobs for a large number of people and made contribution to the strengthening of the economy by inducting automotive technology and craftsmanship among ever increasing numbers along with saving valuable foreign exchange of the country.

PRODUCT LINEHinopak product line can be divided into three distinct segments;TrucksBusesSpecialized vehicles

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HINO TRUCK AND BUS CHASSIS

Hino Motors limited themselves remarks;

“The largest seller of trucks and buses in Pakistan”

This could easily be judged by that Hino trucks and buses are the most popular mode of public transport in Pakistan. With over 33,000 Hino trucks and buses on Pakistani roads, Hino has become the best selling modern commercial vehicle in Pakistan. Hino trucks are designed to carry loads of varying sizes and weights across different terrain and for long distances. They must, therefore, be sturdy, spacious, user friendly and gives trouble-free services.

Hino trucks are designed to function efficiently in the most grueling and extremes of climate and terrain. Hino trucks are equipped with efficient high-powered diesel engines and aerodynamically designed airflow cabs for fuel efficiency.

Some characteristic features about Hinopak products are;

Powerful yet economical Safe and comfortable Durable and robust Affordable maintenance Latest technology High resale value

The bus of Hinopak includes; Road liner grand cruiser A/C luxury buses City liner intercity buses Rapid liner (DLX/STD) coaches Metro liner luxury coaches Apron buses School buses Mobile libraries Beverage carriers

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Cargo carriers Freight vans Mobile dispensaries Mobile workshops Mobile ground power units Dump trucks Garbage collection trucks

Training Needs Analysis

My first assignment/project, which was assigned to me & also my colleague, was “Training Needs Analysis (TNA)”.

Training and Development Need Assessment play a very significant role in pre-training. Training needs vary based upon how much your business is structured, and how responsibilities are shared and distributed. First you should assess the nature of your employees' work, his job description, and the competencies that your business requires to run efficiently.

Identifying Training Needs

The forms named “Employee Training, Development & Succession Plan” was given, which is part of the appraisal forms. He fills this form by itself.

It includes the last Training Effectiveness Evaluation, Training Need and Gap Analysis, Overall Training/Development Plan & Succession Plan. I was assigned to flow this form to the concern manager of every department of Hinopak Motors Limited. After the forms were filled by the employees of the Hinopak, I filled all of them and named it “Training Need Analysis 2007”.Human Resource Manager is conducting the needs analysis must get a clear idea of the problem, look at all possible remedies and report on their findings to management before deciding on the best solution.

From that my real work starts. I was then feeding the required data back into the Computer. The data was mainly the Training Need Gap. It was the difference between the Ability Level and the Job Need Level of the Skills/Knowledge

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required for the job. The numbers are in abstract form, the department manager assigned by his own intellect, judgment & skills.

In Hinopak, the training was given or transfer on the basis of topics and the employees who has the high difference of “Variance”. Like the following:

Sample Training Needs Analysis (TNA) Sheet

Sr. #

EMPLOYEE NAME

Stat

EMP #

DEPARTMENT

TOPIC

Ability Level

Job Need Level

Var.

Need

1 Saad Khan E 436 PROD 1 8 7 VC2 Faheem Ali E 647 PROD 3 8 5 C

3 M. Idrees E 616Sales and Marketing

5 8 3 MC

4Rizwan Haq

E 123Product Support

7 8 1 LC

5 Ahmer Ali E 620Sales and Marketing

I was given the following priority level as critical.

6 to above = Very Critical “VC”5 = Critical “C”2 – 4 = Medium criticality “MC”and Low Criticality “LC”

After putting the data into the Computer, we arranged the data into several separations. For example, we split the data into Department-wise, Topic-wise, Nomination-wise etc. to please the Human Resource Development Manager, Madam Clarita Ahmed.

After that we made Training Calendar in which the current year’s whole data is submerged. The Human Resource Development manager locates general

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information from the Calendar and further information from other sources. Through this Calendar, the HRD manager selects the potential trainees, who really need the training guidelines.

In Hinopak, the need analysis of employees is very progressive; the need data of employees is collected in a very sophisticated manner. The human resource manager floats a form to various departments called “Training Need Analysis" form, TNA form in which departments highlight their employee’s deficiencies.

Human Resource Manager is conducting the needs analysis must get a clear idea of the problem, look at all possible remedies and report on their findings to management before deciding on the best solution.

Hinopak is using “Performance Appraisal” method for identifying the training needs. The TNA activity is done every year in which human resource manager consult to the different managers of different department. Basically TNA is stand in conjunction with the performance appraisal.

In Hinopak, there are two types of form to be filled.

Form filled by immediate boss about employeeForm filled by individual employee about owns self.

These two forms are filled by immediate boss and employee himself/herself properly. Then these forms are sending to Human Resource department where both forms are separated and analyze separately by the Human Resource Department. After the thorough analysis HR manager see the deficiency in the employees. He analyzes the rating which is given to the employees by the immediate boss that is showing their current level of performance. These levels of performance are manipulated on the basis of scientific methods and mathematical calculations.

Recruitment Of Trainee Engineers

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After the Training Need Analysis work finished, I assigned another work of arrangements of “Pre-employment Test and Interviews” of Trainee engineers from different universities like NED and NUST etc.

At first, madam Clarita had given me a Test paper of 20 pages. The test was divided into four parts. English, Mathematics, Engineering, and Drawing. Then I was send with the test papers to NUST University, National University of Science and Technology. There I met with Lieutenant Ashfaq Ali Naz. He was the concern person, under whom supervision several students are to come and to give the Test of Hinopak Motors Limited, conducted by me and my colleague.

It was a great experience at NUST University. I have also had a small chat with Lieutenant. He was a Physics teacher at NUST. The students were basically having the major of Mechanical Engineering. Finishing the work at NUST, the then week, we were assigned to conducting the test of NED University students at Head Quarter. The strength of NED students was greater than NUST students. The NED students were having the majors of Industrial Manufacturing & Mechanical engineering.

There were 30 to 40 students from NED University & 18 to 20 students of NUST University. Madam Clarita, my mentor, had given me the “Answer Key” of the test and from that Key I was listing there scores and assess there marks into Computer. Those who cleared the test were moved/separated from the non-passed ones.

Passed students were then called on phone for the “Interview Process”. Then after leaving of Madam Clarita for Philippines, I was managing half of the work of HRD manager. I can symbolize my work as:

First of all I asked Mr. Muhammad Akram, the Deputy General Manager HR & Administration, what to do with the students he commented as “Employ”.

Then I asked Mr. Syed Zafar Ali, if he wanted to see the Trainee candidates jointly with Mr. Faseeh-ul- Karim Siddiqui, the Director HR & Administration.

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I arranged 2 candidates of NUST University for Mr. Faseeh-ul-Karim Siddiqui for interviewing pupose, recommended by Syed Zafar Ali. And before that I had given Mr. Kareem the required documents related to the candidates.Followed-up Mr. Nishat Zafar’s comments on the 6 NUST University candidates he interviewed and then I included his comments the assessment sheets in the concerned candidates’ documents and fed it on the summary of candidates.

Discussed over the issue of calling more candidates for interview. For this certain parameters were made;

Consult Mr. Akram to hire more candidates for interview.

Interview was arranged on panel cum individual, the concerned managers were already been informed.The confirmation was made after discussing with the interviewing managers.The documentation was properly ensured before all interviewing panel.

After interview, the assessment sheets/marks have been collected from the interviewing panel.Referred the candidates labeled “Employ” to Mr. Akram for further interview or for Hiring.

Internship Nominations

These internships were for the month of January till on. I followed-up internship (Mechanical/Electrical) candidates from NUST through Lt. Ashfaq Ali Naz. But Mr. Naz was busy in his work and he told me that he will be spare after January 31st 2007. I forwarded the CVs to requisitioning managers, to coordinate their interviews/acceptance.

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There were several departmental Interns required by different managers of different departments. Only 1 Electrical Engineering background student required for Mr. Nishat Zafar. I also requested same managers if they could also entertain non-NED students Dawood College of Engineering and Technology (DCET); also attached letter with the request.

Followed-up internship candidate, MBA (HR) from CBM through Mr. Anwer Khan (e-mailed & verbally conveyed request) if Mr. Akram required. The acceptance had conveyed to Mr. Khaliluddin (forward CV, indication of internship duration, commencement date, etc.)

Training Monitoring

When I started internship at Hinopak, there were several training programs already been conducted by external or internal training providers.

Hinopak usually chooses “Outsourcing” for training the individuals. Learning Japanese Language, Basic Computer Course classes, English Language course etc. All three of them were conducted under our monitoring. Madam Clarita had given me Attendance Sheets of Computer class, Communication and Language classes.

I also ensured that the Head Office Training Room is available before each Computer Training class i.e. before 9:00 am each day.

The Product Support Department (PSD) training room was available for English Language. For this course I had to contact Miss Tazeen of CBM (Trainer), in case coordination was required.

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I was also looking forward the Japanese Language training, and also consult with Mr. Subayyal or Mr. Haroon for any tea/snacks for the English Language training. Mr. Adil Shah, DGM S & M was the contact person for decision regarding holding/changing of schedule for same training. The attendance sheet was duly signed by the trainees and fully updated.

Training Nominations

These are the persons who are finally nominated to attend or take the training session outside or inside the Hinopak Motors Limited premises. We have been receiving several filled forms of trainees from different departments of Hinopak and get duly signed by the Director HR and DGM HR, Mr. Faseeh-ul-Karim Siddiqui and Mr. Akram respectively. This training is basically the Outside course.

Then the nominations were sending to training provider for complete assurance, with confirmation advice candidates upon confirmation of training from the trainer.I also prepared cheque request for payment only after the attendance of employee. The photocopied materials were sent with the trainee and the original were retained and filed.

All the requests from the trainee to be trained is acknowledged with the Finance Department, the acknowledgement must be filed and attached with the document.

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