Final Term Reportof

Information Technology in Businesson

Atlas Honda LimitedF-36 Estate Avenue SITE Karachi.

Submitted by:Mohammad Fahad (Leader) Reg: 4606Mateen Majid Reg: 4601Fatima Tariq Reg: 5759Safia Ilyas Reg: 5765Waqar Ashraf Reg: 5762

Submitted to: Engr. Mohammad Ehtesham Khan

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Acknowledgements

Making this Strategic Management final term report was not easy, I am really grateful to all, who so ever made it possible.

Some people deserve special vote of thanks for their immense support in the completion of this report. There are many people who helped me through this uphill task to whom, I am extremely grateful and forever in debt.

The first, I must thank un-doughtily our honorable instructor, Mr. Mohammad Ehtesham Khan who taught everything, I needed to know about this report.

Finally, I thank Atlas Honda Limited, for their cooperation and assistance. They provided me, accurate and reliable information in order to make this report a success.

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Introduction

• A joint venture between the Atlas Group and Honda Motor Co., Japan • Emerging as a global competitive centre of production & exports • Produce 500K motorcycles per annum • Fulfilling its ISO 9002 & ESH (ISO 14001) requirements • Fulfill its corporate citizen responsibilities by providing green products

Two plants are located in Sheikhupura and Karachi

COMPANY POLICY

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CUSTOMER Our customers are the reason and source of our business, it is our joint aim with our dealers to ensure that the customer enjoy the highest level of satisfaction from use of Honda motorcycle.

QUALITYTo ensure that our product and service meet the set standards of excellence.

LOCAL MANUFACTURINGThe industry leader in indigenous of motorcycle parts.

TECHNOLOGYTo develop and maintain distinct business advantage through continuous induction of improved hard and soft technology.

SHAREHOLDERSTo ensure health and viability of business and the safeguarding shareholder by maximizing profit, payment of regular satisfactory dividend and values of the shares.

EMPLOYEETo enhance and continuously update each member’s capabilities andeducation and to provide an environment to encourage practical expressions of individual potential in goal directed team efforts and compensate attractively, according to their abilities and performance.

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MANAGEMENT PROFILE

BOARD OF DIRECTORS

Chairman: Yusuf H. Shirazi

Chief Executive Officer: Saquib H. Shirazi

Directors: Hisao Kobayashi

Nur ul Hoda

Sanaullah Qureshi

Tariq Amin

Shigeki Takane

Company Secretary: Syed Tanvir Hayder

GROUP SYSTEMS AND TECHNOLOGY COMMITTEE

The Group system and Technology committee is responsible to provide an insight towards the various technological aspects of information systems. The objective of the committee is to introduce leading edge technology and IT initiative to automate information delivery and accessibility of data for enhancement of time and cost efficiency.

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INFORMATION TECHNOLOGY DEPARTMENT

Atlas Honda has a sophisticated IT system. All the departments are linked through network. Each and every department is computerized. This computerization has reduced the burdens on employees. Particularly the employees of finance department have different software’s to support their work. All these software’s have been developed by company’s own IT department. Mostly software’s are developed in house and in some special cases.

VISION STATEMENT

I.T Department is dedicated to provide reliable information using modern technology to potential users at all levels. Our professionals will constantly improve their competitive skills and excel in providing quality service covering all the aspects of technology. By embarking into the digital age we will accelerate the positive effects and mitigate the challenges as knowledge grows when shared. We will innovate in a research-oriented manner with technologies to create our own future and value added activities for profitable relationships with our stakeholders, thus encouraging intellectual curiosity for our products, service and insight that will help people around the world, shape the ways business and education will be done in future.

Implementation

• In Atlas Honda implemented to much extent & according to the needs of the organization• Honda has integrated data and processes from major areas of an organization and unified it for

easy access and work flow using ERP software.• Integration has been accomplished by creating one single database that employs multiple software

modules

Departments are integrated through Networking are:

HR&ADMIN, PRODUCTION SHOPS, LOGISTICS, MARKETING, MAINTENANCE, FINANCE, PPC, QUALITY, STORES AND VENDOR PRECUREMENT

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IT Infrastructure

• Local Area Network (LAN) and Wide area network (WAN).• 10/100 Mbps Ethernet switched technology for data transmission connected with both optic fiber

and Cat6 cables, along with fiber optic modules. • Cisco routers.• Mix of switches from three vendors: Cisco, LinkSys and 3Com.• For non-critical applications, 3Com switches.

• Company uses an IBM RS 6000 server for running SAP application.• For Lotus Notes applications the company has opted for IBM’s servers.• For WAN, Cisco Router are connected through wireless connection.• Honda has achieved integration by an ERP

ERP Implemented

• Honda has achieved integration by an ERP• ERP software used by Atlas Honda is SAP• Siemens Information Systems limited (SISL) is the implementation partner

IBM Lotus Notes

• The company messaging set up evolved around Lotus Notes• Lotus Notes is application developed and sold by IBM Software Group. IBM describes the

software as an "integrated desktop client option for accessing business e-mail, calendars and applications on IBM server

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In this real case there the benefits of the ERP systems

Online Data Flow decreases the process time Fast & Online Confirmation Less Paperwork No need for folder storage Database Security Less Employee needed Easy Financial Management Better Inventory Management

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SAP:

“Systems, Applications and Products in Data Processing”

= Modules:

• PP Production and planning

Manages production process, including Capacity planning, Master production scheduling, Material requirements planning.

• SD Sales and Distribution

The SAP sales and distribution is part of the logistics module that support customer, starting from quotations, sales order and all the way towards billing the customer.

• CO Controlling

The SAP CO (Controlling) Module provides supporting information to Management for the purpose of planning, reporting, as well as monitoring the operations of their business.

• FI Financial

The SAP FI Module has the capability of meeting all the accounting and financial needs of an organization.

• QM Quality Management

SAP QM Module - and QM stands for Quality Management in this SAP module – improves the quality of goods, including, Planning, Execution, Inspections, Certificates.

MM Material Management

One of the most important SAP Modules where MM is Materials Management - underpins the supply chain, including Requisitions , Purchase orders , Goods receipts , Accounts payable, Inventory management, Master raw materials, finished goods.

• Though, each department can access database & modules but only to the extent it has been allowed• Data base is updated by each concerned department & every one can simply see that to get the

required information• Shops can’t start production until job order is issued to them by PPC through SAP• At the start of month MRP is run & whole month schedule of parts needed is generated• vendor procurement generate vendor delivery schedule at the start of each month

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Suggestions by Customers: During this research project we have found some major demands from customers are as follows. Customers are very happy because of the price reduction by HONDA. But customers still want

further price reduction by the company. It is a major demand from the customers that now company should introduce some major change

in model. Customers want the company to introduce some new models inaddition with CD 70 and CG 125. The company should try to improve the relations with dealers, as some dealers are not satisfied and

happy with some of the company’s policies. Company should control the prices of the motorcycle in the markets. We have observed some

dealers at our own, selling the motorcycles to the customers above the market price. Although the company has already system to control the price but it is not sufficient.

Recommendation:

Atlas Honda should have strong backup facilities. The company should install an extra server as a backup for this IBM solution is a very good option.

The advantage will be obtained that even if a LAN or a switch fails it should just take 10 minutes to switch to another LAN or switch.

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