Group membersMaryam TariqHamza Sidiki

Syed Shan AlamMansoor Ahmad Khan

Murtaza Akhund

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• 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 upto the customer's expectations and to give them money's worth

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Dynamic Manufacturing and marketing of prestigious products to the entire satisfaction of customers.

Create ideal working environment for continuous development of product and personnel.

Provide adequate return to shareholders and fulfill corporate civic and fulfill corporate civic obligations.

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Honda Atlas Cars Ltd. is rated very high in tons of efficiency, quality and working condition.

The buildings of HACPL are neat & beautiful and the security system is very tight.

"Equality" is a significant feature of HACPL.

Special coasters have been hired for travelling of employees between Lahore and factory.

Mosque and canteen is present in factory premises.

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Product Plans Assemble to order strategy

Competitive Priorities Low cost Consistent quality On time delivery

Process Design Labour + Moderate technological intensive.

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Material Management • Formal Supplier Relations.

Production Plans • For 1 month.

Scheduling • Planned for ahead.

Capacity • Lower utilization.

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• 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.

• Dealers of two cities (i.e. Karachi and Hyderabad) fall within a radius of 400 km from the factory.

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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 labour.

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• 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.

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Honda Atlas Cars (Pakistan Ltd. has a separate production department which is headed by Vice President (Production). The production department has a number of sections such as

Vendor Section Engine Section Welding Section Maintenance Section Paint Vehicle quality control.

These along with some other sections are arranged in four groups, each one headed by a Gm.

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Currently the plant has the capacity of 35 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

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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

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Various parts of vehicles are

Brakes Seats Lights Cooling System

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  The production procedure starts from welding. This is done with the help of special machines. In this way the basic frame is manufactured and is transferred to painting section.

The painting section is equipped with modern machinery. Here, the process starts with wiping, cleaning and degreasing of frame which are followed by Phosphate and ED coating. Now the frame is backed in special ovens. After backing, following coat are applied:

 Base coat Final coat Clear coat (for shining)

After painting, the frame is shifted to assembly line. Here ornamental parts such as lights are fixed followed by heavy parts like engine, tyres seats, wind shield, etc. The procedures at assembly line can be understood by figures mentioned earlier.

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After passing through assembly line, the car moves to "vehicle quality department". Here, different tests are applied. Currently, HACPL is using three QAEs (Quality Assurance Equipment)

After applying these test, the car is driven an a 1-km "test course". Here the noise and performance of car an different road conditions are tested. Finally, a "shower test" is applied to find leakages if any.

In this final stage, pre delivery inspection (PDI) is made and a sticker is attached. Now, the car is ready for shipment.

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A lot of importance is given to " quality control" in HACPL. The personal of HACPL is highly qualified in this regard.

When purchase material arrives, thorough checking of that material is made. If any deficiency is found then it is reported.

Similarly, the finished product is tested before delivering it to the customers in order to assure the quality standards.

HACPL is successfully using "Kaizen" system for quality control. Employees are encouraged to improve quality and reduce cost. Every month, about 20-25 prizes are given on showing good performance.

HACPL is ISO 9002 certified. It was the winner of "Best Quality Award for Asia" in 1996,1997 & 1998.

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The role of R&D is to introduce innovative ways to achieve the objectives especially through production facilities.

Unfortunately, there is no research and development department in HACPL.

This function is performed by Honda Motor Company, Japan. All major changes in models of Honda cars are introduced there.

Employees of HACPL are sent to Japan, where they are trained according to new conditions. Later on, these changes are introduced in the models offered in Pakistan.

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HACPL is persuing a realistic and progressive deletion programme for indigenisation of assemblies, parts and components.

This dynamics programme is being implemented through in-house assemblies and manufacturing operations, and is being supplemented by vendor development.

HACPL is almost same as that of its major competitor, i.e. the manufacturer of Toyota Cars. Efforts are being made by top management to increase this percentage.

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The production department of HACPL is playing a vital role in achieving the overall objectives of the company through efficient utilization of resources.

  HACPL is achieving production efficiency through: Evaluation & improvement of quality control. Training of production employees. Modernization of plant and machinery

Similarly cost minimization objective is being achieved through:

Deletion programme Avoiding poor quality products, which are a loss for the

company. As mentioned earlier, HACPL is achieving excellent quality levels through giving training to personal plus proper use of technology.

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Inventory is a stock of any things held to meet future demand. Inventory is 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 inventory W.I.P. inventory Finished goods inventory.

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 is computerized. Following are the advantages of this computerized system.

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

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HACPL maintains a safety stock of 2 to 3 months. The reason for maintaining 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.

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Shortage Of InputsThere are special warehouse for the purpose. Both imported and

local parts are 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.

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Purchasing in the management of the acquisition process includes deciding which supplies to use, negotiating contract and deciding whether to buy locally or centrally.

Purchasing must satisfy the firm’s supply needs and support the firm’s production capabilities.

HACPL imports materials from the parent Honda Motor Co, Japan in the CKD (complete Knocked Disk) form and also from the Local Vendors.

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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.

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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.

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