EXECUTIVE SUMMARY

Atlas Honda is the market leader in the motorcycle industry and its efficient

working shows this position can be maintained and improved even further in the years to

come. Its nearest competitors have still a long way to reach Atlas. The reasons behind

this are the quality standards at Atlas, its committed workforce and ample chances of

growth at all levels in the organization.

Atlas Honda has this exemplary tradition of orientation which gives its new

recruits a clear picture of the industry and production employed at the industry. I would

like to appreciate Atlas Honda on their efforts and wish them future success (Amen).

This report contains the workings of the departments that I visited during the

orientation program at Atlas Honda. This report also has suggestions for further

improvements to the current working and processes in the organization.

1

ATLAS HONDA – COMPANY PROFILE

Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co.

Japan.

The company was created by the merger of Panjdarya Limited, Sheikhupura successor to

Atlas Epak Ltd., Dhaka since taken over by the Government of Bangladesh and Atlas

Autos Ltd. in 1991. Both these motorcycle manufacturing concerns were established by

the Atlas Group. Atlas Honda Limited manufactures and markets Honda motorcycles in

collaboration with Honda Motor Company. The Company also manufactures shock

absorbers under a Technical Assistance Agreement with Showa of Japan, world leaders

in shock absorber technology.

Honda motorcycles are by far the best selling motorcycles in the country with an

unmatched reputation for high quality, reliability and after-sales-service.

Atlas has undertaken to develop local manufacturing capabilities to the highest,

economically feasible level. While a major role in localization has been assigned to

vendor industries, Atlas has the country's largest in-house manufacturing capacity in the

industry at its Karachi and Sheikhupura plants. To support the production facilities, the

company has established an R&D wing and tool making facilities, which are growing

rapidly in size and functions as the company expands.

 Atlas has managed to execute 9 Joint Venture/Technical Assistance Agreements between

local vendors and foreign manufacturers for transfer of technology.

Atlas management is striving to modernize company operations by adapting applicable

aspects of research and theory and more specially, Honda's unique philosophy of

hard/soft technologies to the realities of Pakistani conditions. Efforts are being made to

develop participation of all levels of personnel in decision-making and substantial and

effective delegation has been established at levels where applicable. Various participation

programmes such as 'Ala Mayar' Quality Circles movement, launched in 1985, are

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strongly encouraged to allow constructive self-expression and teamwork. The Company

training and development programme encourages each member to develop himself and

contribute to his full potential.

Atlas Honda is playing a pioneering role in creating conditions for easy and confident use

of motorcycles all over the country.

A vast and growing network of over 1500 motorcycles sales service and spare parts

dealers has been established. To back up this system, Atlas has set up Technical Training

Centers in Karachi, Lahore and Faisalabad, which provide several courses of varying

duration and complexity for motorcycle mechanics and users each year. Mobile training

facilities take the latest know-how, technology and maintenance of motorcycles to major

rural and urban centers around the country.

FINANCIAL OUTLOOK FOR THE CURRENT YEAR

During the current year, the company produced 117,209 units, which is a 30%

increase over the previous year’s production of 90,064 units.

Sales revenue increased to Rs.6.98 billion from Rs.5.52 billion last year

showing a growth of 26.44%

Profit before tax increased to Rs.650.92 million as against Rs.394.57 million

for the previous year.

The operating expenses went up to Rs.360.04 million as compared to

Rs.322.37 million last year.

Price for CD-70 has decreased to Rs. 58500 from Rs.68500 while the price of

CG-125 has gone down to Rs.73000 from Rs.83000.

This clearly shows that the company is on the progress ladder and will overhaul its

competitors by a large percentage. Currently, it holds around more than 60% of the

market share in the motorcycle industry. Coordination and extensive efforts of all the

departments put together has resulted in improved performance for the company.

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VISION

To remain the market leader in the motorcycle industry and emerge as a globally

competitive center of production and exports.

PROPOSED VISION

Strengthen our dominance as the market leader in the motorcycle industry, emerging as a

globally competitive center of production and exports.

MISSION STATEMENT

To be a dynamic, profitable and growth oriented company through market leadership,

excellence in quality and service adding value to shareholders and maximizing

exports.

To give attractive returns to business associates, shareholders as per their

expectations. Be a responsible employer and reward employees according to their

ability and performance.

To be a good corporate citizen to fulfill its social responsibilities.

To create and foster a network of researchers and engineers, who will make unique

contributions to the development of motorcycle industry ensuring the satisfaction of

our valuable customers and protection of the environment by producing emission -

friendly green products.

4

COMPANY POLICY

CUSTOMER

Our customers are the reasons and sources of our business. It is our joint aim with our

dealers to ensure that the customers enjoy the highest value of satisfaction from use of

Honda.

QUALITY

To ensure that our products and services meet the set standards of excellence.

LOCAL MANUFACTURING

To be the industry leader in indigenization of motorcycle parts.

EMPLOYEES

Enhance and continuously update each member’s capabilities and education to provide an

environment which encourages practical expression of individual potential in goal

directed team efforts and compensate them attractively according to their abilities and

performance.

TECHNOLOGY

Maintain and develop advantage by use of distinct business technology.

SHAREHOLDERS

Safeguarding shareholder by maximizing profit, payment of regular satisfactory dividend

and adding value to shares.

CORPORATE CITIZEN

To comply with all Government laws and regulations to maintain a high standard of

ethics in all operations, and to act as a responsible member of the community.

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QUALITY POLICY

Commitment to provide high quality motorcycles and parts.

Right work in first attempt and on time.

Maintain and continuously improve quality.

Training of manpower and acquisition of latest technology.

Safe, clean and a healthy environment.

Market leadership and prosperity for all.

6

SWOT ANALYSIS

STRENGTHS

A cordial, friendly and frank environment free of any communication gaps.

MBO (Management by Objectives) – Targets for the future are set well in advance by

the management at Atlas Honda, which provides the employees with goals to work

upon and improve any shortcomings.

Punch Card system, which creates a sense of accuracy and responsibility in the

employees to reach on time and helps to maintain discipline.

A standardized uniform for all, which removes any possibility of discrimination and

promotes cordiality.

Job Rotation is practiced on a regular basis aiding the employee to add to his skills.

Kaizen (Japanese principle of continuous improvement) and Ala Mayar (quality

standards) strictly followed. This makes sure that the organization and the team at

Atlas Honda, keep improving themselves and their surroundings.

Well-established brand name in the market.

Maximum employee satisfaction – Turnover less than 1%

Adequate exposure to the surroundings to newly recruited employees before

assignment of work responsibilities.

Continuously growing demand for Honda motorcycles all over Pakistan.

Expanding network of dealers and service facilities.

Committed management and a dedicated workforce.

Transparent and merit-based selection program for new employees.

WEAKNESSES

Inadequate backup strategies and planning for unforeseen and unpredicted

competition.

Lack of an established Marketing Research department, therefore lacking in proper

forecasting of future activities.

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No major changes to existing models or introduction of a new model since past few

years.

Lack of advertising campaigns for promotion of the product and entering newer

markets.

Lack of extracurricular activities and sponsorship for sports etc.

OPPORTUNITIES

Huge market size covering all of Pakistan, with lots of unventured markets needing

focus and attention, for development into future profitable territories.

Population growing and youth need to be focused on, as future prospects of

motorcycle customers.

Poor quality and performance of Chinese motorcycles can be encashed by Atlas

Honda, to project their ever improving quality and sustainability to the customers.

Various successful ERP implementations in organizations, supporting need for

implementation at Atlas Honda, aiding smooth and efficient flow of business

processes.

Low prices by competitors induced Honda to decrease its prices resulting in excess

demand for the market leader, expected to grow at a larger scale.

Ever increasing media for advertising provides Honda with opportunities to project

itself in the best-suited way to its prospect customers.

Growing second hand exchange of Honda motorcycles due to the cost factor. Honda

dealers now practice this process, which gives Honda great deal of control over its

circulation of motorcycles in the market.

THREATS

New Entrants such as the growing brands of Chinese motorcycles in the market pose

a serious threat for Honda but due to the fact, that Honda has reduced its prices, they

have increased their market share.

Political Instability and Unhealthy Law & Order Situation are also a major threat for

Honda. Honda customers are reported to have said that they were robbed of their

motorcycles after just having taken the motorcycle out of the factory. Honda is

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reported to have lost quite a great deal of market, especially in Karachi, due to these

snatchings.

MARKETING MIX

PRODUCT

Honda currently offers two brands in the market: CD-70 and CG-125 (CD and CG

are manufacturing model codes for the motorcycle and 70 and 125 are the

displacement volumes of the engines).

In the past, Honda has offered more than 40 brands for its customers, which were

taken out of the production process due to their declining sales and contracting

markets.

The main features of Atlas Honda motorcycles that have given it the edge over its

customers are: High resale value, fuel economy, durability and reliability.

The product parts installed in the motorcycle are produced in-house, purchased from

vendors or imported from Japan as CKD (Complete Knock Down) units.

PLACE

Atlas Honda has two production plants at Karachi and Sheikhupura. At the Karachi

plant, only CD 70 is produced while at the Sheikhupura plant, CD 70 and CG 125

both are produced. The Karachi plant is on 5 acres while the Sheikhupura plant is on

25 acres.

The distribution network of Honda comprises of 64 Antenna Dealers and 925 Service

Dealers all over the country (Antenna Dealers are responsible for the warranty claim

by the customer and its relevant processing while Service Dealers are responsible for

sales and parts replacement and service to customers).

4-Stroke Mechanics are independent mechanics who are trained by Honda to provide

service to customers. Honda trains them in 4-stroke technology and later if they

provide excellent service and satisfaction to customers, Honda can make them

Service Dealers after quality assurance check.

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PROMOTION

Atlas Honda practices advertising but only to a limited degree. The reason being that

it already has a well-established market and excess demand.

The need for advertising arises when the product is to be ventured out into newer

arenas or newer markets. Due to this factor, Atlas Honda has started advertisements

some time back.

The most common advertisement seen on the media is on GEO TV with a catchy

theme and tune.

Other than this advertisement, Honda uses sign boards, pana flex boards and

billboards to display its products.

Print media is also employed for advertisements due to the fact that newspaper is a

widely read medium of information.

Atlas Honda has sponsored Independence Day rallies in the past.

In the last Champions Trophy, Atlas Honda sponsored hockey matches but this needs

to be practiced on a more regular basis.

PRICE

For the CD 70, Atlas Honda has set the price at Rs.58500 and for CG-125, the price is

Rs. 73000. These prices have been revised after a Rs.10000 decrement in the price of

Atlas Honda some time back.

Chinese competitors’ motorcycles lie in the range of Rs.30000-50000, due to which

people are going for Chinese motorcycles (cost factor but poor quality) but still

cannot reach the market leader spot that Honda has occupied since many years.

Yamaha and Suzuki have also followed in Honda’s footsteps and decreased their

prices accordingly.

10

ORIENTATION PLAN

The orientation program at Atlas Honda lasted for a week. It was a nice and knowledge

acquiring experience of the company, its environment and workings. There was a visit of

each department listed below, for 3 hours where the related employees briefed about their

respective departments. It is a courtesy on behalf of the personnel in the various

departments to take out time for the newly recruited employee and show him around and

they deserve full regard for it.

The departments visited were:

HR and Administration

Information Technology

Logistics

Finance

Quality Assurance

Maintenance

CAD / CAM

Production

PPC

Marketing / Parts

PLUS POINTS OF THE ORIENTATION

The orientation helps the newly recruited employee feel at home and easy around his

new working new environment. He gets to know the people in the organization who

are always willing to lend him a helping hand.

The orientation program explains the business proceedings, the production processes

and various related activities going on at the company and respective departments

playing their parts.

All the departments are covered and the personnel brief about their respective

departments. The employee now knows whom to approach for any particular

problem, which requires solutions and explanations.

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Suggestions for Improvement in the Orientation Program

The time duration for orientation in each department should be set keeping in mind

the set-up of the respective departments and number of business processes it carries

out. In our orientation, the production department orientation time was 3 hours, which

was the same as other departments’ orientation time although production requires

more time to be understood well.

The personnel should be informed in advance about the new recruit’s visit to his

particular department. Otherwise, it happens that the personnel in that department

have scheduled activities for the day and are unable to give ample amount of time to

the newly recruited employee for orientation.

Before the orientation actually starts, each department representative should give a

brief presentation to the recruit about his respective department’s processes and then

show him the actual working. The recruit can also be given a short pamphlet

explaining each department and the personnel working in them.

The orientation should start with the assembly line and production after HR /

Administration visit. This would help the trainee to grasp how actually things are

carried out and prior knowledge of motorcycle parts and manufacturing.

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DEPARTMENT VISITS

HR / ADMINISTRATION

Workings of the Department

The HR Department is responsible for testing, interviewing, recruiting, hiring and

training employees for Atlas Honda. The select

ion process for the candidate is transparent and based totally on merit and only the

candidate’s skills, qualifications and abilities can lead to his selection.

The HR Department is also responsible for monitoring relations among fellow

employees and unions. Employee health and safety programs, payment plans, reward

systems etc. are also looked over by HR.

During the recruitment process, the most appreciable aspect of the process was

the speedy replies to the interviews and assessment of the candidates. Most other

organizations take a great deal of time to answer to the candidate after he has given an

interview. Atlas Honda completed the whole recruitment process of an Aptitude Test and

3 interviews in just around 10 days.

The efficient working of the HR Department is supported by the turnover rate,

which is less than 1% proving that the employees hired have been loyal, in some cases

more than 30 years. Employees are offered such a congenial environment and luring

incentives that they do not even think of joining another organization.

Regarding leaves and attendance, management staff is allowed a total of 26 leaves

while the workers are allowed a total of 41 leaves during the year. Management staff is

allowed no grace time on arrival at the factory while the workers are allowed 10 minutes

grace time to reach the factory.

After an employment freeze for 10 years, Atlas Honda is now hiring young people

as trainees and posting them in different departments. The Trainee program lasts for 1

year during which the trainee gains adequate exposure to the industry and the workings of

the department. Last year, training was provided to 54 employees and 4 were sent abroad

for similar purpose.

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Hay’s Job Evaluation System is used for compensation of employees and their

performance measurement. Job grades are assigned to positions instead to persons and

each position is analyzed individually and compensated accordingly.

Suggestions for Improvement of HR Activities

An Employee Suggestion Form to be circulated on which each employee would

mention extracurricular activities or other events that need to be organized on a more

regular basis and also list the shortfalls in the processes that need to worked on.

Get together events should be encouraged and planned on a more regular basis. These

events can be for the employees or for their entire families titled as “Family Fun Day”

to give the worker the much-needed interaction informally with his colleagues and

enjoy with his family.

To capture the youth segment, who love riding motorcycles and find it a daring

experience, Atlas Honda needs to sponsor shows and other tableaus in schools and

educational institutions.

Newspapers and periodicals to be circulated more often in the organization, which

could assist the employee’s knowledge of worldly affairs and activities.

Organize sports games and matches for employees on off days or holidays as means

of relaxation and entertainment. Atlas Honda needs to sponsor commonly watched

sports shows and other regional sports depending on the region, as a publicity

campaign for their products.

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INFORMATION TECHNOLOGY (IT) DEPARTMENT

Working of the Department

The history of the IT Department at Atlas Honda traces back to the 70’s when the IBM

Platform was introduced in the company. Further replacements introduced System 36 and

then AS 400 (Operating System used on AS 400 was OS 400 and languages worked on

AS 400 are COBOL and RPG).

In ’95, Atlas management made a decision to install Oracle Server and related

products that are platform independent. The IT staff at Atlas built customized programs

for various departments specifically designed for them. Each system devised has all

functions undertaken by the department, incorporated in it.

The Networking equipment at Atlas consists of switches; nearly 80 PC’s on a LAN

(Local Area Network) and Windows 2000 licensed OS. TCP / IP is used as the

communications protocol and Compaq Servers are used.

Operating systems for Client and Server are: Windows ’98 for Clients and Windows

2000 Server for Servers.

The OS used for Oracle Servers is UNIXWare.

2 UPS are used to counter any power failure. Usually the electricity is restored in less

than 25 seconds by use of powerful generators.

For internal communication and email, Lotus Notes is used which is rapidly growing

in popularity in use for organizational purposes.

The various systems developed by the Atlas IT Team for the various departments are:

Fixed Assets

General Ledger

Import Accounting / Dealer Accounting

Accounts Payable

Payroll

Petty Cash

Inventory Accounting

Costing

Systems are regularly updated for any changes, which are to be incorporated.

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The IT Structure at Atlas is about to undergo revision at a massive scale. The reason for

this is the new proposal under consideration. Atlas is planning to shift from:

LAN to WAN (Wide Area Network)

Oracle to ERP (Enterprise Resource Planning) : The ERP is to be

installed at Karachi and connected to the other regional offices in

different cities. In Karachi, connection of the company’s Server with

the ISP will be via Radio Link while the ISP – ISP Link is to be of

Fiber Optic.

The ERP to be installed is currently under consideration. It is to be

selected from the packages available in the market or it is going to be a

customized one: People Soft, JD Edwards, SAP are market leaders in

ERP packages. ERP covers all the departments of an organization and

their related accounting etc.

Suggestions For Improvement of IT Department

The ERP installation process under consideration is a great effort on behalf of Atlas

Honda to venture into new IT arenas to produce maximum efficiency. This proposal

should be brought forward at the earliest and implemented.

ERP experienced and ERP trainees to be hired when ERP implemented at Atlas

Honda, adding to the currently available skill set of employees. Current employees

need to be given extensive training to get the ERP know-how.

Creating a company website localized according to the cities and having online query

forms so visitors queries are handled effectively and the latest information is

uploaded on the website. Suggestion forms should be present so employees can

contribute as to how to improve the workings of the company and visitors can suggest

ideas too.

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FINANCE

Workings of the Department

The Finance Department consists of various sub departments:

SALES TAX

The Sales Tax applied is VAT (Value Added Tax), which is at the rate of 15% on

final product after the cost and profit are calculated for registered goods and 18% for

unregistered goods.

IMPORT ACCOUNTING

Import Accounting deals with the complexities involved in the Import process of

parts to the company. The first step is the opening of L / C by importer in favor of

supplier and the insurance coverage etc. After L / C is opened by importer, supplier is

informed by the L / C Advising Bank in the supplier’s country who proceeds with the

documentation needed (Supplier must submit sales invoice with the description of goods

and their cost, Certificate of Origin identifying the country where the goods were

manufactured and other relevant documents) The supplier sends his documents (e.g.: Bill

of Exchange (Short term financial instrument addressed by seller requiring buyer to pay a

certain amount of money at a future date), Sales Invoice etc.) to the L / C Advising Bank.

The bank examines the documents for compliance with credit terms. These documents

are sent to Issuing Bank who confirms the deal. Bill of Lading is issued by carrier

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FINANCESales Tax

Dealer Accounting

Payables Salaries & Benefits

Cost and Inventory

Import Accounting

describing the goods accepted by the carrier and under certain conditions, and serves as a

receipt for goods to be delivered to a designated person.

Bill of Entry is taken to Customs House where importer tells them that goods are

coming at port and duties etc. are cleared (HS Code helps to identify the goods being

imported).

Insurance coverage is also accounted for and is divided in: FOB (Supplier’s

responsibility for cost of goods until they are loaded on ship), CIF (Supplier’s

responsibility for goods only until loading of goods from supplier’s port, but he has to

insure the goods and must pay the cost and freight necessary for delivery of goods to

buyer and C & F (Supplier must pay the costs and freight till delivery of goods to port of

destination).

DEALER ACCOUNTING

The dealers after accepting payment from the buyer deposit the money in the respective

branch of the bank designated by Atlas Honda for this purpose. From there on, the

payment is transferred to the Central Branch of the designated bank. Order form copy is

received by department and booking is okayed.

SALARIES AND BENEFITS

This department is concerned with salaries structure preparation, which is done through a

computerized system. Attendance of employees is recorded and at the end of the month,

salary of all employees are paid after deductions of tax, absenteeism etc. Additions for

medical, overtime etc. are also made accordingly.

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PAYABLES

Payables are prepared for:

Vendors

Utility

Insurance

Tax payments

Club payments

Other miscellaneous payments

COST AND INVENTORY

For inventory purposes, FIFO (First In-First Out) accounting method is followed. Stock is

maintained up to 10 days average.

Fixed Assets accounting is also done by this department. Depreciation on fixed

assets is done using Straight-Line and Reducing Balance Method. Computers and

Accessories and Dies and Jigs are charged to income on a straight-line basis. Other assets

are depreciated on reducing balance method. The depreciation method and useful lives of

items of fixed assets are reviewed periodically and altered when needed.

Costs associated with developing and maintaining computer software are

recognized as expense as incurred. Costs associated with unique software products and

generating economic benefits exceeding costs beyond one year, are recognized as

Intangible Assets.

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QUALITY ASSURANCE DEPARTMENT

Workings of the Department

When the parts come in from vendors, a Tender note is prepared for all the

incoming parts in the day. A receiving report is prepared for the goods when

they are received.

The incoming parts are divided into:

Critical parts: Concerned with safety of bike rider

Control items: Which can cause functional failure

Others: Concerned with appearance of motorcycle

A shortage list is prepared at day’s end for items short supplied by vendor.

An inspector checks the items and takes random samples from them. After

checking, an Inspection Report prepared which discusses the equipment

checked and the specific measures that were used. Those who have failed the

test are returned back to vendor if purchased from vendor.

80% of items are checked at Vendor’s location and the remaining 20% are

checked at Atlas Honda by their own inspector. In case of doubt on a

particular lot, the whole lot is checked. At the vendor’s, this inspector from

Atlas Honda attends the quality check carried out and suggests improvements

for the processes.

Meetings are held from time to time discussing the various equipment, quality

assurance checks and suggestions for improvement are put forward.

There is a Standard room for quality check where the items are checked on Calibration

Equipment. For example, Roundness Testing Machine checks for roundness of various

motorcycle parts and is sensitive up to 0.1 micron. Other equipments are micrometer and

verniers, ageing machine, owen etc which have separate functions.

An endurance test is carried out and the motorcycle is checked for several

kilometers on several obstacles and routes for durability and efficient performance.

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MAINTENANCE DEPARTMENT

Workings of the Department

The Maintenance Department is responsible for working on the machines and equipment

that shows faults and breakdowns during the day and to get them into running position as

the earliest so there is minimum production loss. It is responsible for supervision and

managing spares and staff. It is also involved in forecasting and planning for machine and

equipment replacement. Currently, there are 282 machines with 197 of them in

production.

Types of Measures:

Corrective Maintenance: This is carried out for daily breakdowns and

inefficiencies in machines.

Preventive Maintenance: This is carried out as advance planning of faults that

can occur in the machines. Forecasting and planning for machine and parts

replacement is prepared at the start of each year to see which equipment needs

work.

Spare Parts (Machine wise): Spare parts are reordered on basis of minimum

stock level and historical usage in the past. A spare part report is prepared for

finding utilization of spare parts machine wise.

Suggestions for Improvement of Maintenance Department

The management staff for the department should consist of more than one skilled

manager. The reason being, that the machines can breakdown any time and if one

manager is employed in repairing that particular machine, the other can work on the

next machine that breaks down.

The maintenance manual should contain record of the most common breakdowns and

scenarios where the recent breakdowns were tackled efficiently so other people in the

team can anytime study and learn from them.

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PRODUCTION PLANNING AND CONTROL DEPARTMENT

Working of the Department

Production Plan is prepared for the whole month deciding color, number of units to

be produced – depending on market demand (usually information is got from

dealers).

Copy of the production plan is given to procurement and stores.

Plan is submitted at start of the month for units required to be produced as decided by

Marketing Department.

Daily Activity Report prepared for planned and actual monthly produced units. It also

shows record for local parts and those In-Transit.

A list indicating the shortage of parts is sent from Sheikhupura at day’s end to

Karachi. Those units are checked in store and if present, are sent with next day’s

scheduled supply to SKP.

Raw Material Import File maintained which tells about shipment, order, arrival,

production and stock maintained for 2-3 months.

Work Order given to shops which gives an outline of production for the month at

hand.

Issuance of frame number and engine assembly number also done by PPC.

Suggestions for Improvement of PPC Activities

The department personnel have a daily check on the units produced and go for the

information to the various shops producing the units. They check the files and

records. The simple way should be that for each department, their display board

should display the units actually produced and planned production and reasons for the

shortcomings so that they can be improved on and discussed for later improvement.

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LOGISTICS DEPARTMENT

Workings of the Department

Vendor Procurement deals with parts which are: In-house produced, CKD (Complete

Knock down Units) (these are units imported from Japan) and Vendor procured

(Those procured from Vendors). 80 Vendors currently are in Karachi and 65 Vendors

are in Sheikhupura.

In house production is of the various motorcycle parts mainly press parts and fenders,

patches, hub, switch assembly line, frame body etc.

Commercial Section deals with Imports of parts and their record keeping & Local

purchases (parts other than used directly in motorcycle like thinner etc.)

Vendors are selected if they follow the QCRC principles (Quality, Cost, Reliability

and Capacity). They are upgraded and their processes updated through Vendor

Production Systems Upgrade and Vendor Improvement Programs.

The Logistics Section also decides the delivery method for the materials delivery and

presents a truck route which covers maximum dealers.

BMR (Balancing Modernization and Replacement) principles are followed which

helps to keep the processes and work methods according to the current industry

standards.

OSP (Outside Processing) is also practiced which includes changes made to parts sent

to Vendors like chrome plating of parts etc.

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LOGISTICS

VENDOR PROCUREMENT COMMERCIAL

PRODUCTION DEPARTMENT

Workings of the Department

The efficiency of the production department speaks for itself due to the fact that it

takes around just 2 min 5 sec to complete a motorcycle.

The major positive points of the production process are its speed and control on the

processes, safety notices placed everywhere for guidance to workers from any unseen

hazards and the maintenance of prim and proper conditions such as regular cleaning

of the floors.

The production department is divided into several shops which produce their

respective parts such as fenders, hub etc.

On the assembly line, all the parts are placed together in the shape of a motorcycle.

There are workers on either side of the assembly line placing the parts together.

The paint shop takes care of the painting of different motorcycle parts using spray

painting techniques etc.

Speed is checked on a speed device.

Engine is checked on equipment especially for this purpose.

After assembly, personnel perform a second check and place an “OK” tag on the ones

which are ready to be sold.

Suggestions for Improvement of Production processes

There are some processes like the melting aluminum which are to be handled

cautiously preventing any mishaps. For this a worker needs to have safety equipment

always on and protecting him.

Rotation on the assembly line as regards different duties should be regularly practiced

as to remove redundancy and boredom in the work and improve performance.

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CAD / CAM DEPARTMENT

Workings of the Department

CAD / CAM Department is responsible for preparing dies, high pressure die casting

molds and inspection jigs and fixtures.

The process starts with a request from GM Logistics for manufacturing of Dies /

Molds for each fiscal year.

Die can be prepared either from study of the drawing of the part or by Reverse

Engineering. For Reverse Engineering, Renishaw is used which is a device which

traces the exact pattern of the part under use and then sends that diagram to the

computer where it can be adjusted accordingly.

The methods and machinery used for Die preparation are:

Steel Cutting – For blocks etc.

Electrode or EDM - Uses kerosene for fine performance

Wire Cut – Wire made of brass which cuts sheets of metals

The other necessary features include:

Orientation – This means that the part placed should be in such an

angle that it is evenly distributed and metal does not collect in one

place when filling the die model.

Shrinkage: This means that the part to be made has first a large sized

metal used because during process, metal shrinks so the part has extra

metal to use and complete the structure.

Cavity, Core Generation: Outside look of the die is the cavity portion

while the inside is called the core generation. This is the structure of

the die.

MCS (Machine Coordinated System) is used to determine axis of parts

in machines.

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MARKETING DEPARTMENT

Workings of the Department

Marketing functions are divided into Sales, Services and Spare Parts.

Sales department is responsible for sales to different markets and customers.

Institutional sales are made to private companies, government sector and tender

business like police.

Spare parts division is responsible for booking of genuine parts, service and parts’

dealer coordination and proper management of demand and supply.

Services are the services provided to customers by the company and its dealers.

The dealers maintain the 5 S concept which includes Sales, Services, Second Hand

Exchange, Spare Parts and Selling on Installments.

Dealers are divided into Antenna Dealers (Responsible for fulfillment of warranty

deal with customer), Authorized Service Dealers (Responsible and trained by Atlas

Honda to work for them. They are encouraged to improve their shops, add more

facilities, try to cover all the 5 S) and 4 Stroke Service Mechanics (They are

independent but trained in 4 stroke technology by Atlas Honda and offered incentives

to become authorized service dealers).

Marketing Research for the department is conducted by research firms such as AC

Nielsen etc. but some research projects are handled by the team at Atlas Honda as

well which include Quantitative (Interviewing people) and Qualitative Methods

(Focus groups).

Suggestions for Improvement of Marketing Department

Expand the dealer network to growing markets.

Extended promotion should be practiced in new and existing markets.

The areas should be subdivided and allotted to sub division heads.

A formal marketing research department should be set up.

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