INTRODUCTION

THE COMPANY:

Hino Motors Japan and Toyota Tsusho Corporation in collaboration with Al-Futtaim Group of UAE and PACO Pakistan formed Hinopak Motors Limited in 1986.

In 1998, Hino Motors Ltd., and Toyota Tsusho Corporation obtained majority shareholding in the company after disinvestments by the other two founding sponsors. Hinopak is the trusted market leader with over 65% share in the Pakistani Truck and Bus industry. Hinopak a vital contributor in saving of foreign exchange is also providing jobs and plays a pivotal role for the development of the local industry through its progressive manufacturing.

By continuing to move forward and staying alert to the ever-changing market & social needs, Hinopak will continue to be a successful and respected corporate citizen of Pakistan, reflecting their commitment and belief in the Hinopak corporate philosophy to "contribute to the development of a more prosperous and comfortable society by providing the world with a new set of values".

HINOPAK VALUES:

H onesty at all cost and all spheres of businessI ntegrity we do what we say at personal & corporate levelN on bureaucratic pragmatic in systems & processesO penness to customers, markets & criticismP urpose oriented always keeping the end in mindA ltruism fostering relationship with society & environmentK aizen continuous improvement

QUALITY CONTROL AND ASSURANCE

Quality control emphasizes testing of products to uncover defects, and reporting to management who make the decision to allow or deny the release, whereas quality assurance attempts to improve and stabilize place production, and associated processes, to avoid, or at least minimize, issues that led to the defects in the first.

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Quality assurance refers to any planned and systematic activity directed towards providing consumers with products (goods and services) of appropriate, along with the confidence that products meet consumer’s requirements. Quality assurance usually associated with some form of measurement and inspection activity has been an important aspect of production operations throughout history.

QUALITY ASSURANCE MANAGEMENT IN HINOPAK MOTORS LTD:

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's QAD guarantees quality is built into every component, part and process starting from the product development stage including its 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. 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, its Quality Control System is performing commendably, adding quality at every stage of production.

Hinopak also conducts comprehensive training programs for both executives and workers to improve their skill, dedication and total output. The Training Section of the Personnel Department plays a key role in the implementation of these programs

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QUALITY ASSURANCE INITIATIVES:

Basic Stance toward Quality Assurance Initiatives

With the aim of becoming a "front runner in both the environmental and safety fields," Hino Motors endeavors to fulfill its corporate social responsibilities as a manufacturer of vehicles. To this end, the Company aims to position its products as the preferred choice for long-term purchases by delivering lightweight vehicles that offer fuel efficiency, reduced exhaust emissions and noise, as well as enhanced safety. From these customer and quality first principles, Hino Motors strives to consistently deliver the highest quality products and services in its efforts to enhance customer satisfaction.

Product and Service Quality Control

Working in unison with its dealers, Hino Motors works diligently to gather, categorize and distribute throughout its network the opinions, claims, comments and requirements of its customers. In building a framework that facilitates the swift dissemination of information, the Company is taking significant strides in enhancing product and service quality. To increase the speed in which this information is gathered, distributed and applied, Hino Motors adopted the Hino Quality Assurance (HQA) System throughout its dealer network in Japan from fiscal 2006. The HQA System was introduced at 33 overseas dealers and distributors in fiscal 2008 as a part of the Company's globalization initiatives. The HQA System not only increases the speed with which quality assurance information is shared through the network, but also enables Hino Motors to better identify and monitor the progress of efforts to further enhance quality. As a result, the Company is able to more quickly determine and resolve issues that impact product and service quality.

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OVERVIEW OF THE HINO QUALITY ASSURANCE SYSTEM:

QUALITY MANAGEMENT SYSTEMS IN HINOPAK MOTORS LTD

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The Quality System Requirements is the development of fundamentalquality system that provides for continuous improvement, emphasizing defect prevention and the reduction of variation and waste in the supply chain.

ISO 9001 CERTIFICATION

Hinopak is the only automotive company in Pakistan and the first Hino affiliate worldwide to receive the ISO 9001 certificate. This certificate has been given to Hinopak for implementing and maintaining a company-wide quality system in:

The Assembly and Progressive Manufacturing of Commercial Vehicles

Management. Project Engineering. Design. Development. Purchasing. Production. Marketing. Quality Management.   

To the uninitiated, ISO 9001 certification may be considered a vital marketing tool exclusively for promoting exports. In fact, the ISO 9001 requirement is as valid for the domestic customer as it is for the overseas clientele. What is important for each

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customer is the assurance that the products and services being offered are in accordance with predetermined quality standards.

QUALITY POLICY OF HINOPAK MOTORS LTD:

Hinopak Motors Limited is committed to produce trucks and buses which meet the expectations of its customers in the areas of quality, cost and delivery.

Striving for total customer satisfaction, Hinopak Motors Ltd focus on achieving quality objective set in the following areas:

• Identification of products and operational needs of customers.

• Building quality features in product design ensuring reliability, maintainability, safety and durability.

• Production of vehicles conforming to Hino Global Standards.

• Diligent Product Support and Customer Service.

All Hino users, suppliers and employees are continuously being educated, trained and motivated to accept the quality as combined responsibility and to meet the customer needs and regulatory requirements following the international standards of Quality Management System.

ISO 14001 CERTIFICATION  

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This new award reflects its commitment to safeguard and improve the environment, through international safety and environmental standards.

Being a responsible corporate citizen striving for the improvement in its environment, both within and outside the company , Hinopak Motors Limited has voluntarily ISO 14001 Certification. ISO 14001 pertains to monitoring and managing the effect, which any business has on the environment.

Environment management System

Hinopak conducted its Initial Environmental Review (IER) in the year 2001 to ascertain its capability for adopting ISO14001 standard. In a very short span of time Hinopak management adopted ISO14001 management system and became the first automobile company in Pakistan to get this qualification.

Hinopak in its mission to promote activities that reduce environmental impacts and as directive from the principal Hino Motors Japan acquired ISO 14001:1996 in 2001. In 2005, Hinopak successfully upgraded its ISO 14001:1996 Standard to new ISO 14001:2004 Standard and again became the first automobile company in Pakistan as well as in Hino Group to achieve this qualification worldwide.

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Environmental Audits

Regular audits are conducted to ensure that its EMS is in line with ISO 14001:2004 international standard and is properly implemented and maintained. Top management reviews results of audits on regular basis to verify that the Hinopak EMS spiral up continually.

Two days EMS Internal Audit Training was held on 6-7 June 2007 to develop team of auditors, whose expertise would be utilized for the effective execution of audits.During Sept. 2007, recertification audit was conducted in which no major or minor nonconformity was registered.

Training and Awareness

At Hinopak, various educational activities are organized to give environmental awareness to employees, suppliers and customers. It makes it a point that its people develop greater consciousness and sense of responsibility towards the environment. Trainings related to Operational Control, Energy Conservations and Emergency Response are on its regular agenda. Every new employee whether appointed in management or worker cadre is given orientation on EMS.

Country wide free services and tune-up camps are regularly organized to educate the general transport customers on the need to maintain healthy environment. Such activity demonstrates its commitment to a better environment and road safety.

Hinopak organizes technical training program free of cost, free of drivers and mechanics. Topics range from Road Safety to Vehicle Maintenance, etc. to inculcate consciousness for safe, optimum, pollution free performance of its products.

Environmental Communication

In its effort to ensure that its commitment to the environment pays off quickly in practical results, it is essential to get stakeholders to understand its business activities and to build strong bonds of cooperation. Effective communication is the most powerful way of bringing this about.

Effective Information like Policy, significant environmental aspects and main environmental issues are available on its website: www.hinopak.com. Similarly, Company’s newsletters, bulletin board, Financial Annual Report are also used for communicating in and out, the progress performance of EMS.

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ENVIRONMENTAL POLICY OF HINOPAK MOTORS LTD:

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

Motto of Hinopak Motors Ltd is:

"Strive for contributing to environment friendly products to our customer satisfaction & support to environmental preservation activities for our employees and community, to the best of our ability".

For this, it will set objectives and targets to:

Promote pollution prevention & reduce environmental impacts by proper handling and disposal of waste water, solid waste, hazardous substances & gaseous emissions.

Conserve energy and other resources.

Comply with all the applicable legal and other requirements.

Improve environmental performance continually by reviewing objectives, conducting audits and management reviews under our Environmental Management System.

Educate, train and motivate employees and interested parties to conduct activities in an environmentally responsible manner and as per the company's environmental policy, which is also available to the public.

OHSAS 18001 SAFETY MANAGEMENT SYSTEM

Hinopak has successfully achieved accreditation to safety management system OHSAS 18001:2007.

 OHSAS 18001 is a Health and Safety Management System, developed to assist in the reduction and prevention of accidents and accident related loss of lives, equipment and time.

 The following key areas are addressed by OHSAS 18001:

 ·     Planning for hazard identification, risk assessment and risk control

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·     OHSAS management programme . ·     Structure and responsibility . ·     Training, awareness and competence . ·     Consultation and communication. ·     Operational control . ·     Emergency preparedness and response . ·     Performance measuring, monitoring and improvement.

International certifying body for the management systems, M/s. Bureau Veritas certification have evaluated OHS Management system of Hinopak during their three day audit and declared it compatible with the OHSAS 18001:2007 standards and recommended issued the certificate on July 11, 2008.

HEALTH & SAFETY POLICY  OF HINOPAK MOTORS LTD:

Hinopak Motors Limited is committed to have all its operations safe and protected against all hazards affecting occupational safety & health of its employees:

 Aim of Hinopak is: 

To create and develop such working conditions and environment which are conducive to safety & health of employees. 

To make its process free from accidents and illnesses, gradually.

To work in an organized manner to make Continual Improvement in the area of Occupational Safety & Health.

To make objective based efforts for reducing unsafe and unhealthy work practices / conditions.

To educate/train its employees in the area of Occupational Safety & Health and make continuous efforts to create awareness among all concerned on the subject.

 To develop an adequate investigation system which can help avoiding reoccurrence of accidents.

To comply with all the applicable legal & other requirements / regulations and to cooperate with the authorities concerned.

SOME OF THE BEST PRACTICES FOLLOWED BY HINOPAK MOTORS LTD

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Hinopak Motors Ltd follows the TPS i.e; Toyota Production System. The main objectives of the TPS are to design out overburden (muri) and inconsistency (mura), and to

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eliminate waste (muda). The most significant effects on process value delivery are achieved by designing a process capable of delivering the required results smoothly; by designing out "mura" (inconsistency). It is also crucial to ensure that the process is as flexible as necessary without stress or "muri" (overburden) since this generates "muda" (waste). Finally the tactical improvements of waste reduction or the elimination of muda are very valuable. There are seven kinds of muda that are addressed in the TPS:

1. Over-production.2. Motion (of operator or machine).3. Waiting (of operator or machine).4. Conveyance.5. Processing itself.6. Inventory (raw material).7. Correction (reworks and scraps).

The elimination of muda has come to dominate the thinking of many when they look at the effects of the TPS because it is the most familiar of the three to implement. In the TPS many initiatives are triggered by mura or muri reduction which drives out muda without specific focus on its reduction.

PRINCIPLES OF TOYOTA WAY:

The Toyota Way has been called "a system designed to provide the tools for people tocontinually improve their work". This system has been practiced by Hinopak motors Ltd.

The 14 principles of The Toyota Way are organized in four sections :

I) Long-Term Philosophy.II) The Right Process Will Produce the Right Results.III) Add Value to the Organization by Developing Your People.IV) Continuously Solving Root Problems Drives Organizational Learning.

The principles are set out and briefly described below:

Section I — Long-Term Philosophy

Principle 1

Base your management decisions on a long-term philosophy, even at the expense of shortterm financial goals. People need purpose to find motivation and establish goals.

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Section II — the Right Process Will Produce the Right Results.

Principle 2

Create a continuous process flow to bring problems to the surface.Work processes are redesigned to eliminate waste (muda) through the process of continuous improvement ( kaizen). The seven types of muda are:

• Overproduction.• Waiting (time on hand).• Unnecessary transport or conveyance.• Over processing or incorrect processing.• Excess inventory.• Motion.• Defects.

Principle 3

Use "pull" systems to avoid overproduction.A method where a process signals its predecessor that more material is needed. The pull system produces only the required material after the subsequent operation signals a need for it. This process is necessary to reduce overproduction.

Principle 4

Level out the workload (heijunka). (Work like the tortoise, not the hare).This helps achieve the goal of minimizing waste (muda), not overburdening people or the equipment (muri), and not creating uneven production levels (mura).

Principle 5

Build a culture of stopping to fix problems, to get quality right the first time.Quality takes precedence (Jidoka). Any employee in the Toyota Production System has the authority to stop the process to signal a quality issue.

Principle 6

Standardized tasks and processes are the foundation for continuous improvement andemployee empowerment. Although Toyota has a bureaucratic system, the way that it is implemented allows for continuous improvement (kaizen) from the people affected by that system. It empowers the employee to aid in the growth and improvement of the company.

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Principle 7

Use visual control so no problems are hidden.Included in this principle is the 5S Program - steps that are used to make all work spaces efficient and productive, help people share work stations, reduce time looking for needed tools and improve the work environment.

• Sort: Sort out unneeded items.• Straighten: Have a place for everything.• Shine: Keep the area clean.• Standardize: Create rules and standard operating procedures.• Sustain: Maintain the system and continue to improve it.

Principle 8

Use only reliable, thoroughly tested technology that serves your people and processes.Technology is pulled by manufacturing, not pushed to manufacturing.

Section III — Add Value to the Organization by Developing Your People

Principle 9

Grow leaders who thoroughly understand the work, live the philosophy, and teach itto others. Without constant attention, the principles will fade. The principles have to be ingrained; it must be the way one thinks. Employees must be educated and trained: they have to maintain a learning organization.

Principle 10

Develop exceptional people and teams who follow your company's philosophy.Teams should consist of 4-5 people and numerous management tiers. Success is based on the team, not the individual.

Principle 11

Respect your extended network of partners and suppliers by challenging them andhelping them improve. Toyota treats suppliers much like they treat their employees, challenging them to do better and helping them to achieve it. Toyota provides cross functional teams to help suppliers discover and fix problems so that they can become a stronger, better supplier.

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Section IV: Continuously Solving Root Problems Drives Organizational Learning.

Principle 12

Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu).Toyota managers are expected to "go-and-see" operations. Without experiencing the situation firsthand, managers will not have an understanding of how it can be improved. Furthermore, managers use Tadashi Yamashima's (President, Toyota Technical Centre (TTC)) ten management principles as a guideline:

1. Always keep the final target in mind.2. Clearly assign tasks to yourself and others.3. Think and speak on verified, proven information and data.4. Take full advantage of the wisdom and experiences of others to send, gather ordiscuss information.5. Share information with others in a timely fashion.6. Always report, inform and consult in a timely manner.7. Analyze and understand shortcomings in your capabilities in a measurable way.8. Relentlessly strive to conduct kaizen activities.9. Think "outside the box," or beyond common sense and standard rules.10. Always be mindful of protecting your safety and health.

Principle 13

Make decisions slowly by consensus, thoroughly considering all options; implementdecisions rapidly (nemawashi).The following are decision parameters:

1. Find what is really going on (go-and-see) to test.2. Determine the underlying cause.3. Consider a broad range of alternatives.4. Build consensus on the resolution.5. Use efficient communication tools.

Principle 14

Become a learning organization through relentless reflection (hansei) and continuous improvement (kaizen).

KAIZEN:

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Kaizen means improvement. Moreover it means continuing improvementin personal life, home life, social life, and working life. When applied tothe workplace Kaizen means continuing improvement involving everyonefrom top management to managers and workers.The Kaizen strategy is the single most important concept in Japanese management. It is the key to Japanese competitive success. Because of Japan’s success, the Kaizen philosophy has been implemented in organizations around the world as a way to improve production values whilealso improving employee morale and safety.

Definition

Kaizen (Ky ‘ zen) is a Japanese term that means continuous improvement,taken from words 'Kai', which means continuous and 'zen' which meansimprovement. Some translate 'Kai' to mean change and 'zen' to meangood, or for the better means change for better.

The aims of a Kaizen organization are typically defined as:

To be profitable, stable, sustainable and innovative. To eliminate waste of time, money, materials, resources and efffort and before

problems arise rather than correcting them after the event. To create a harmonious and dynamic organization where every employee

participate and is valued.

The aim of Hinopak Motors Ltd is the same as that of Kaizan organization.

STATISTICAL PROCESS CONTROL

Statistical process control (SPC) is the application of statistical methods to the monitoring and control of a process to ensure that it operates at its full potential to produce conforming product. Under SPC, a process behaves predictably to produce as much conforming product as possible with the least possible waste. While SPC has been applied most frequently to controlling manufacturing lines, it applies equally well to any process with a measurable output. Key tools in SPC are control charts, a focus on continuous improvement and designed experiments.

Hinopak motors Ltd has been implementing automated Statistical Process Control (SPC) systems as part of their continuous improvement efforts. Simply stated, SPC uses statistical equations and graphs to create acceptable limits for process variation

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“control limits”. Control limits fall well within product specification limits so that unstable processes can be identified before problematic product characteristics are produced. With real operators monitor processes on the production floor. Typically, there is an alarming system place to alert operators of processes that have exceeded the defined control limits, so that they can take an immediate corrective action.

The core objectives of SPC are to provide production processes in real-time. The principles of SPC take into account the following:

All processes have unique characteristics or hidden personalities that are inherent within them.

Data analysis provides in depth understanding of process variations and identifies improvement opportunities.

Success in real-time SPC requires that measurement data be accurate, and collected in a timely manner. Various gauging devices are used to ensure that a specific measurement is taken and recorded. SPC software programs collect and store this data, analyzing it and creating graphs instantaneously.

As a factory floor application that can be extended up to corporate offices and throughout the enterprise SPC software delivers vital quality data upstream to Manufacturing Execution Systems (MES). By integrating live production data into enterprise-wise systems, SPC plays a vital role in the business’ continuous improvement strategy.

SPC solutions are designed to allow companies to plan and structure long-term strategies such as maintenance schedules and bring short term quality improvements into view. The scope, detail and accessibility of quality data helps manufacturing facilities avoid unscheduled downtime, By analyzing tool wear metrics, quality departments have the opportunity to minimize downtime by creating detailed maintenance schedules that extend out for many years.

To execute process improvements, workers participate in the PDCA cycle as in Plan, Do ,Check ,and Act, also known as the Shewhart cycle. PDCA involves planning a process adjustment, executing the adjustment, reading the results of the process adjustment to validate results, and taking corrective action if the results don’t align with the original goals. This pattern is repeated until there is a minimal statistical margin of error.2

The PDCA cycle illustrates one of the most valuable concepts of SPC: out-of-controlprocesses present opportunities for improvement. When applied correctly, control charts and limits identify an inconsistency that manufacturers need to know about. Control limits denote what is normal behaviour, and conversely, what’s abnormal. By

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addressing inconsistencies properly, manufacturers proactively approach process changes that, if ignored, could potentially disrupt future operations.

CONCLUSION

After a detailed report regarding the quality practices in the Hinopak motors Limited from a global perspective, we can observe how, despite the different principles, rules, standards etc followed, they all aim for a common result Quality. Hinopak Motors by nature is consumer centric. It responds immediately and sensitively to emerging technologies and innovations. However precautions must be observed while keeping up with the changing times. Hence Quality control and Quality assurance are very important tools in maintaining standards and expectations from the customers.This is where the importance of Quality Management Systems comes into perspective.

Hinopak Motors Ltd follow standards like QS 9001 and ISO 14001 help draw a framework and a set of guidelines for automobile companies to follow so as to maintain their quality standards and policies. It also follows the health and safety management system standard OHSAS 18001which is developed to assist in the reduction and prevention of accidents and accident related loss of lives, equipment and time.

The Japanese consider quality management to be a holistic process. They involve theemployees and the top management under the umbrella of quality principles that are common to all. This approach has helped Hinopak become global leaders inAutomobile Industry. Kaizen continuous improvement system is being followed in Hinopak motors Ltd which helps in making profit, stabilization, sustainability, growth. It eliminates wastage of resources and efforts.

Hinopak motors Ltd has been implementing automated Statistical Process Control (SPC) systems as part of their continuous improvement efforts. It results in higher corporate profitability and improved competitiveness. SPC helps operator identify quality problems that result from special causes and also help Hinopak’s management identify quality problems resulting from common cause. Through team work and participation Hinopak motors Ltd has been efficiently controlling its quality and giving the best results in the market of automobiles and the main objective of this organization is to maintain the highest levels of quality and safety while providing ultimate customer satisfaction.

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