1

Atlas Atlas HondaHonda Pakistan Pakistan

Presented by:Presented by:Nazish SohailFaizyab ShahidHaseeb Tahir

Non Presenting MembersNon Presenting Members: Shahbaz Chaudhry

Anjum Altaf ButtWajahat Altaf

Hammad M Lali

2

winning with SCM

3

About this Presentation….

4

You’ll Hear!

Industry AnalysisIndustry AnalysisAtlas Honda PakistanAtlas Honda PakistanOrganizational StructureOrganizational StructureCompany Supply ChainCompany Supply ChainProduct RangeProduct RangeProcurement Procurement SAPSAP

Manufacturing Manufacturing Warehousing Warehousing Vendors/ Dealers Vendors/ Dealers Transportation Transportation ConclusionConclusion

5

Industry AnalysisMotorcycle Industry estimates show that last year a total of over 750000 motorcycles were sold in the country

The industry has been experiencing

a healthy growth rate of around 30%

per year for the past 4-5 years.

Pakistan came at number seven

with a production of 750,000 units

of motorcycles constituting to 2%

of the global total.

6

Market Share of Motorbike in Pakistan

7

Company Profile

Atlas Honda Limited is a joint venture. Atlas Honda Limited is a joint venture. Country’s largest in-house manufacturing Country’s largest in-house manufacturing capability at its Karachi and Sheikhupura plants. capability at its Karachi and Sheikhupura plants. 14 Joint Venture/Technical Assistance 14 Joint Venture/Technical Assistance Agreements. Agreements. SKP Plant comprises of 500K plant.SKP Plant comprises of 500K plant.Daily motorcycle production is 1325 units Daily motorcycle production is 1325 units comprising 4 models. comprising 4 models. 65.7 percent share in the total sales in Pakistan. 65.7 percent share in the total sales in Pakistan. turn over is less than 3 percent. turn over is less than 3 percent. 307 dealers nationwide.307 dealers nationwide.Technical Training Centers in Karachi and Lahore.Technical Training Centers in Karachi and Lahore.

8

Organizational Structure

CEO

Finance Marketing Supply chain HRM R & DQuality

Procurement Warehouse Production Control

Imports

LocalSAPRM

Chairman

9

Company Supply chainCustomer Dealers

Assembly / manufacturing plant

Central Warehouse (Sheikapura)

Part assembling (Karachi)

ProcurementSuppliers

Import

5% CD-70

15% CD- 125

Local

95% CD-70

85% CD- 125

10

Dynamics of Material Flow

Supplier Plant Warehouse Logistics Retailer

11

Dynamics of Order Flow

Supplier Plant Warehouse Logistics Retailer

12

Product Range

CD 70Key Features

» Big and Comfortable Seats

» New Beautiful Graphics

» Petrol Tank with 9 Liter Capacity

» Super Econo Power, 4-Stroke Engine

» New Mud Flap

» Strong Side Cover with Lock

» New Utility Box

13

CD 100

Key Features

» Strong Footrest » Fuel Guage Indicator» Multi Reflector Head Light» Winning Style» Econo Power 4-Stroke Engine» Double Cradle Strong Tubular

Frame» Strong Suspension

14

CG 125

Key Features

» Comfortable Seat with Rear Grip » New Beautiful Petrol Tank with Graphics» Strong 4-Stroke Smoke Less Engine» Stylish Speedometer with Economy Zone» Elegant Front Light» New Shape For Back Light

15

CG 125 Delux

Key Features

» Attractive Fuel Tank with modern graphics

» Speedometer with trip meter » Tachometer with Fuel Gauge

Indicator » Black painted silencer with stylish

cover » Front hydraulic disc brakes » Back light with aerodynamic cowl » Stronger and adjustable cushion

16

Competition

Yamaha

Suzuki

Sohrab

Pak hero

Hero

Star

Lifan

Jailing

17

SAP “System Application & Products"

Master production scheduling (MPS)

Material Requirement Planning (MRP)

18

ProcurementProcurement Process

1. Forecasted Procurement2. Bill Of Material (B.O.M.)3. Price Negotiation4. Performa Invoice is called5. Purchase Order is placed6. Establish Letter of Credit (L.C.)7. Revival and Recovery of Original

Documents:8. Bill of Lading9. Invoice10. Letter of Credit11. Clearing Agents12. Delivery and Possession of

Material13. Good Receipt Note

19

Production Planning Atlas Honda total plant capacity is 500,000 units in Shaikhupura and 105,000 units in Karachi

planned to produce 400,000 units

using both push as well as pull system

Long range capacity planning

Aggregate Planning

Master Production Scheduling

Production Planning & control system

Pull SystemPush System

20

Manufacturing

CD 70:

Components

Imported 5%

LocallyProcured 95%

Lead Time:6 months

Lead Time: 1 week

CD 125:

Components

Imported 15%

LocallyProcured 85%

Lead Time:6 months

Lead Time: 1 week

21

Manufacturing Process

In Atlas Honda there are total fourteen processes, as follows:In Atlas Honda there are total fourteen processes, as follows:

Frame Assembling Paint shop

BuffingAlternative Current generation

Drum Gear ShiftDrum Gear Shop

Machine ShopFuel Cope

Die castingEngine Assembling

WieldingIgnition Coil Shop

Switch AssemblingEngine Machine Assembling

22

Bottlenecks In Atlas Honda supplier are considered

as bottlenecks…

SupplierProcurement

Part Assembling (Karachi) Central

Warehouse (Sheikapura)

Assembling/Manufacturing

PlantDealers

Bottleneck

23

WareHousing

STORESStores dept. at AHL performs

following functions:

Manages the receiving, stacking & issuance of parts & materials to the shop.Ensures the provision & dispatches of required parts to SKP & KHI plant, spares part division & vendors.Handles the rejections & damages from all shopsHandles the scraps & wastes generated in the factory

24

STORES DEPT

GeneralStores

CKDStores

RMSStores

RPS Stores

DCCStoresss

ScrapYard

Press Parts in-process

In-HouseParts

Local/subcontractrParts

Local/ Subcontr-actor parts

In-HouseParts

Division of stores

25

Handling Techniques

At AHL, following handling techniques are used:

For handling from shop to shop especially designed trolleys, bins and pallets are used.

Imported motorcycle components are received in steel & wooden cases & pallets.

Local vendor parts are received from receiving section in standard carton boxes.

26

VENDORS/DEALERS

At present, 82 vendors are working with the company.

Functions:

This department is responsible for all the relations and dealing with different vendors.

This department motivates vendors to produce excellent quality and train them to achieve the highest level of quality.This department also deals with the CKD (complete knock down). This department performs VIP (vendor improvement programe). Under this programe, the department representatives go to the vendors and train them for new methods to produce better quality at reasonable price.

27

Dealers

Atlas Honda has established countrywide dealers’ network..

“5S” dealers5s stands for the following

five facilitiesSaleService Spare partsSpecial sale Second hand sales

28

Major Selling Cities

Atlas Honda

Karachi Hyderabad Lahore Sheikapura Sialkot Gujranwala

29

Transportation

Type of trucks and there capacity:

HINO (125 motorbikes)

BEDFORD (110 motorbikes)

MAZDA (65 motorbikes)

30

CONCLUSION

…. “Right time delivery to the right customers.”

31