SUBMITTED TO: SIR FEHMEED IDREES
SUBMITTED BY: STUDENT’S NAME: AHMED AITSAM GULL STUDENT’S STUDENT’S ID: BBA-FA08-005 Date: 09-30 - 2011
COMSATS INSTITUTE OF INFORMATION TECHNOLOGY. LAHORE 1
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1.Acknowledgement: First of all, I must thanks to “ALMIGHTY ALLAH” for helping me in many ways to complete this “Internship Report”. And also thanks to Mr.Jamil Asghar Khan (National Manager HR), Miss Asma Azmi ( Manager HR), Mr. Mutahir (Assistant manager HR), And special thanks to logistics department Mr. Sohail Qaiser (national manager logistics), Mr. Ahmad Ali (manager logistics), Sayyad Sikandar Raza Zaidi (Assistant manager logistics), Faheem Dawood (Executive logistics), Farhan (Executive logistics), Hussnain (Executive logistics), Abdul Sattar (Executive logistics) Najam Gilani (Executive logistics) whose guidance, encouragement and wide range of suggestions and comments provide me the way to think in quite different way to practically apply my knowledge.
I deeply thankful to Mr. Fahmeed Idrees (Assistant professor) for guidance. I am hopeful that my Advisor will appreciate my efforts.
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2.Dedication: I dedicate it to ALMIGHTY ALLAH and his beloved prophet HAZRAT MUHAMMAD (PBUH). And my parents and all my loved ones.
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3.EXECUTIVE SUMMARY: This report is about my internship I have under gone at Atlas Honda limited. The main Purpose of internship is to learn by working in a practically scenario and to apply the Knowledge acquired during studies I have stayed there as an internee for 6 weeks and Learnt a lot of things which I cannot learn without the exposure in the real world’s I have Put my efforts to show how all departments are working and how they are interlink with Each other my report focuses on giving an insider view of the organization its systems And workings and also of the customers. It also high lights the differences and the Similarities between the real world and the academic world. It also highlights Atlas Honda Limited leads the list of fifty competitors in motorcycle manufacturing industry in Pakistan due to distinctive quality policy. Their corporate vision and values are The driving forces and at present Atlas Group spreads over 11 companies both private and public limited. Atlas Group is a responsible entity which is highly committed to comply with corporate, environmental laws and to conduct their business with utmost honesty and sincerity. At AHL it is believed that development can only be achieved by equality and respect at work place. They have been doing it for decades and there is no doubt they are reaping its benefits. AHL has a manufacturing capacity of 910 units per shift under strict quality standards and their sale network is well spread to sell all of them. They have a 5s dealer network to satisfy the customer to the optimum level.
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4.Table of contents:
1.ACKNOW 1.AC KNOWLEDG LEDGEME EMENT: NT:
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2.DEDICA 2.DE DICATIO TION: N:
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3.EXECUT 3.E XECUTIVE IVE SUMMARY: SUMM ARY:
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4.TABLE 4.T ABLE OF CONTENTS CONT ENTS::
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5.INTRODUCTION ABOUT ORGANIZATION BUSINESS SECTOR (AUTOMO (AUT OMOBILE BILE INDUSTRY INDU STRY): ):
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6.MOTOR 6.M OTORCYCL CYCLE E INDUSTRY INDU STRY::
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7.TH 7. THE E GROUP: GRO UP:
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8.OVERVIEW 8.OVERVI EW OF THE ORGANIZATION: ORGANIZATIO N:
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8.1.COMPANY :....................................................................................11 :....................................................................................11 8.2.PLANTS:.......................................................................................12 8.2.1.K ARACHI ARACHI PLANT:.................... :.............................. ..................... ..................... ..................... .......................................... ............................... 12 (SOURCE : A TLAS HONA.KARACHI PLANT).......................................................................13 8.2.2. SHEIKHUPURA PLANT: ..................... ................................ ...................... ..................... ..................... ..................... ....................13 ..........13 (SOURCE : A TLAS HONDA.SHEIKHUPURA PLANT)..............................................................13
(SOURCE: ATLAS HONDA SHEIKUPURA) SHEIKUPU RA)
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9.VI 9. VISIO SION: N:
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10.MISSION:
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11.QUAL 11. QUALITY ITY POLICY: POL ICY:
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12.ENVI 12. ENVIRONM RONMENT ENT POLICY: POLI CY:
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13.GROUP 13. GROUP COMPANIE COMP ANIES: S:
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14.ORGANIZATIONAL 14.ORGANI ZATIONAL STRUCTURE:
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14.1.COMMENTS ON THE ORGANIZATIONAL STRUCTURE: -................................16 6
14.2.NUMBER OF EMPLOYEES:
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14.3.SHIFT TIMINGS:............................................................................18 18 15.MANA 15. MANAGEME GEMENT: NT:
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(SOURCE: ATLAS HONDA ANNUAL REPORT 2010-2011) 2010-20 11)
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16.MILE 16. MILESTO STONES NES::
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17.SIX KEY PRINCIPLES PRINCIPL ES OF ATLAS HONDA:
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17.1.BACK TO ACK TO BASICS:..........................................................................24 17.2.3RS (RESPECT, RECOGNITION, AND REWARD):......................................24 17.3.CASH IS KING:..............................................................................24 17.4.ANALYSIS, ANALYSIS AND ANALYSIS:...................................................24 17.5.CUSTOMER FIRST:..........................................................................24 17.6.650 K IS K IS MUST IN 2011:................................................................24 18.STRA 18. STRAITE ITEGIC GIC GOALS: GOAL S:
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18.1.CUSTOMERS : ...............................................................................24 18.2.QUALITY : ...................................................................................24 18.3.LOCAL MANUFACTURING : ................................................................ ................................................................24 24 18.4.TECHNOLOGY : .............................................................................24 18.5.SHAREHOLDERS: ..........................................................................25 18.6.EMPLOYEES: ...............................................................................25 18.7.CORPORATE CITIZENS: ...................................................................25 18.8.NATURE OF ORGANIZATION:
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18.9.MA 18. 9.MANAGE NAGEMENT MENT::
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19.STATEMENT OF ETHICS AND BUSINESS PRACTICES FOR THE YEAR 2010 20 10-20 -2011 11:: 26 20.SWOT 20. SWOT ANALYSIS ANAL YSIS::
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21.MA 21 .MARKE RKETI TING NG
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21.1. 21. 1. 4 P’S OF MARKETI MARK ETING: NG:
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21.1.1.PRODUCTS:...............................................................................31 (SOURCE: WWW.ATLASHONDA.CO WWW.ATLAS HONDA.COM) M)
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(SOURCE: WWW.ATLASHONDA.CO WWW.ATLAS HONDA.COM) M)
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(SOURCE: WWW.ATLASHONDA.CO WWW.ATLAS HONDA.COM) M)
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21.1.2.PRICE:...................................................................................36 21.1.3.PLACEMENT:.............................................................................37 21.1.4.PROMOTION:..........................................................................38 21.2.SALES:.......................................................................................39 21.3.SERVICE DEPARTMENT:...................................................................41 21.4.WORKING OF MARKETING DEPARTMENT:.............................................41 21.6.BRAND:......................................................................................42 22.FINA 22. FINANCIA NCIAL L ANALYSI ANAL YSIS: S:
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23.INTRODUCTION 23.INTRO DUCTION OF DEPARTMENTS: DEPARTME NTS:
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23.1.LOGISTICS DEPARTMENT:.................................................................49 23.2.PRODUCTION PLANNING CONTROL:.....................................................49 23.3.QUALITY ASSURANCE DEPARTMENT:...................................................50 23.4.I.T DEPARTMENT:..........................................................................50 23.5.CORPORATE AFFAIRS: ...................................................................51 23.6.HUMAN RESOURCE DEPARTMENT:......................................................52 23.7.STORES DEPARTMENT:....................................................................55 23.8.FINANCE 23.8.FI NANCE DEPARTMENT: DEPARTME NT:
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24.CU 24 .CULT LTURE URE::
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25.CRIT 25. CRITICAL ICAL ANALYSI ANAL YSIS: S:
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25.1.FUTURE 25.1.FUT URE PROSPECTS PROSPE CTS OF THE ORGANIZATION: ORGANIZATI ON:
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26.CONCLUSION 26.CONCL USION & RECOMMENDATIONS: RECOMMENDAT IONS:
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27.MY 27. MY INTERNS INT ERNSHIP HIP::
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27.1.SCOPE OF LOCAL PURCHASE DEPARTMENT.......... DEPARTMENT.................... ..................... .............................62 ..................62
(SOURCE: WWW.ATLASHONDA.COM. PROCEDURAL MANUAL 2010-2011. ISO IS O MANUAL MAN UAL)) 66 8
27.3.PURCHASE OF CAPITAL GOODS..................................................66 28.WORK 28. WORKING ING SPECIME SPE CIMENS NS
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29.BIBL 29. BIBLIOGR IOGRAPH APHY Y
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APPENDIXES:
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5. Introduction about organization organization Business Business sector (Automobile Industry): The auto market is one of the largest segments in world trade. The auto industry showed signs of recovery. It posted a growth of 16.5%, which is partly reflective of the lower base of last year. Further, the anecdotal evidence suggests that rural demand for automobiles was higher than anticipated. This was due to continued liquidity in rural areas for reasons as mentioned above. However, the relentless cost increases arising from higher commodity higher commodity prices, weaker Pak Rupee against other foreign currencies, higher inflationary conditions and frequent interruptions to business caused by power and security concerns, continuously put pressure on the margins and pushed up the manufacturing cost. Considered to be one of the main contributors towards technology development and employment generation, the auto industry necessitates an encouraging environment for maintaining the confidence of the investors Changing models, improving fuel efficiency, cutting costs and enhancing user comfort without compromising quality are the most important challenges of the auto industry in a fast globalizing world. Hence there is a need for exploring the industrial complementarities in the region for better quality, favorable costs, fuel efficiency and attractive designs. Therefore, the requirement of information exchange in the region is much more pronounced now than ever before for keeping the auto industry afloat and competitive. The objective should not be only to understand each other’s comparative advantage but also to explore mutual complementarities as well as to build an 9
early warning system on the trends in industry and changes in user preference to brace for the challenges confronting the auto industry. Mutual consultation among the countries of the region therefore assumes the proportion of an abiding imperative for regional capacity building and preparing the countries to meet the requirements of the new economy economy through research, advisory services, information dissemination and exchange of country experiences, besides joint ventures and technology tie-ups. (n.d.). Automarket . Retrieved from Automarket: (source: Auto Market. (n.d.). Automarket www.automarket.com)
6. Motorcycle Motorcycle Industry Industry:: The two wheeler industry maintained momentum from last year and registered handsome growth of 17.6%. The growth was somewhat affected by the floods in August 2010, however, higher prices of crops more than compensated the effects of the floods. This growth can also be attributed to escalating fuel prices, poor transportation system, shortage of natural gas and increase in transportation fares coupled with hike in four wheeler prices, which has created demand for motorcycles in urban and semi urban areas In anticipation of growth prospects and market dynamics, greater competition attracting fresh investments, better products and better network is scheduled for the years ahead. However, the formal sector in the industry is currently facing stiff competition stiff competition in pricing of products against the malpractices of the informal sector through sales tax avoidance, under invoicing and smuggling. At a time, when Government is looking for different sources of revenue generation, this apparent source of collection must be brought into the tax net by checking illegal practices.
7.The Group: Group: Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co., Japan. The foundation of the Atlas Group was laid in 1962 with the establishment of Shirazi Investments (Pvt) Limited with a capital of half a million rupees and three men doing business in trading shares and real estate. The growth of the Atlas Group is the result of its focus on good corporate governance. Today Atlas is a diversified group dealing in engineering, financial 10
services and trading. It consists of seven public limited companies out of which six are quoted on the Stock Exchanges in Pakistan, and five private limited companies. Atlas shareholders equity now stands over 25 billion rupees; assets have increased to over 60 billion rupees; personnel strength is over 7000 and annual annual sales have crossed 60 billion rupees. The Group paid taxes of Rs. 15 billion over 2% of the total government revenues. All this progress is due to the Group's reliance on the intellectual capital, dedicated efforts and team spirit of all the stakeholders. Every member is striving for excellence and taking pride in the Group's motto:
Organization Development Through Self Development (source:Atlas Honda website)
8. Overview Overview of the Organization Organization:: 8.1. Company: Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co. Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over by the Government of Bangladesh in 1971 after the fall of Dhaka. AHL manufactures and markets Honda motorcycles in collaboration with Honda Motor Company. The Company also manufactures various hi-tech components in-house in collaboration with leading parts manufacturers like Nippon Denso and Toyo Toyo Denso. Honda motorcycles are by far the largest selling motorcycles in the country with an unmatched reputation for high quality, reliability and after-salesservice. AHL 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 capability at its Karachi and Sheikhupura plants. To support the production facilities, the company has established an R&D wing and tool making facilities through CAD/CAM which are growing rapidly in size and function as the company expands. Atlas has managed to execute 12 Joint Venture/Technical Assistance Agreements between local vendors and foreign manufacturers for transfer of technology. Besides, Atlas has directly executed 9 Joint Venture/Technical Assistance Agreements other than Honda. AHL management is striving to modernize 11
company operations by adapting applicable aspects of research and theory and more specifically, Honda’s unique philosophy of hard/soft technologies to the realities of Pakistani conditions. Company management structure, systems and processes are changed according to the demands of the customer, growth and new technology. Efforts are being made to develop participation at all levels of personnel in decision-making and a substantial and effective delegation has been established at levels where applicable. Various participation programs such as ‘Ala Mayar’ Quality Circles movement, launched in 1985, are strongly encouraged to allow constructive self-expression and teamwork. The Company training and development programs encourage all members to develop themselves and contribute to their full potential.. A vast and growing network of over 1600 sales service and spare parts dealers has been established. In order to back up this system. Mobile training facilities take the latest knowhow, technology and maintenance of motorcycles to major rural and urban centers around the country. Annual Production Capacity:
Authorized Capital:
600,000 units
1 Billion (rupees)
1 Billion (rupees) Paid Up Capital: - 625.52 Million
(source:www.Atlashonda.com)
8.2. 8. 2. Plan Plants ts:: 8.2.1.
Karachi Plant:
Company mother plant is based in the city of lights and provincial capital of Sindh, The Karachi city. It is located at F-36, Estate Avenue, S.I.T.E. Karachi. Atlas Group signed technical agreement with Honda in 1963 and plant started commercial production subsequently. Plant spread over an area of 5 acres. In 1964, production began with 7 motorcycles per day. Now plant production has reached to 300 units in a day. Plant manufactures CD 70 only.
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(source: Atlas hona.karachi plant)
8.2.2. Sheikhupura Plant: Another plant is situated in Sheikhupura city, Punjab. It is located at 26-27 KM LahoreSheikhupura Road Sheikhupura. The plant was built in 1981 and spread over an area of 27 acres with the establishment of modern and synchronized 500K plant in 2006. The plant manufactures all four models i.e. CD 70, CD 100, CG 125 and CG 125 Deluxe.
(source: Atlas honda.Sheikhupura plant)
Export :
Bangladesh
Afghanistan Regional Offices:
Lahore: 1 Mecloed Road Lahore-54000 [ (042) 111-111-245, 37225015-17, 37225015-17, 37233515-17 ]
Rawalpindi: 60-Bank Road, Saddar [ (051) ( 051) 5120494-6, 5120497 ]
Multan: Azmat Wasti Road Multan-60000 [ (061) 4540054, 4540028, 4571989 ]
Rahim Yar Khan: 9. Visi Vision on: : Atlas Honda Limited, 4-B Zamindara Colony [(068) 5888809 ] Market leader in the motorcycle industry, emerging as a globally competitive centre of production and exports. (source: Atlas honda sheikupura)
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10. Mission: A dynamic growth oriented company through market leadership, excellence in quality and service and maximizing export, ensuring attractive returns to equity holders, rewarding associates according to their ability and performance, fostering a network of engineers and researchers ensuing unique contribution to the development of the industry, customer satisfaction and protection of the environment by producing emission friendly green products as a good corporate citizen fulfilling its social responsibilities in all respects.
Our slogan:
For Honda to remain Honda, and for everyone to realize their aspirations, we must believe in
"The Power of Dreams"
11. 11. Qu Qual alit ity y Polic Policy: y:
Commitment to provide high quality motorcycles & 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 healthy environment
Market leadership and prosperity for
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12. 12. Envi Enviro ronm nmen entt Poli Policy cy::
Reduce and prevent the generation of waste and pollution in our production system
Establish management program to promote energy conservation and reduce waste or resources
Comply with requirements of environmental legislation and local regulations as a responsible corporate citizen
Promote relevant environmental protection knowledge and activities through education and training
Initiate and extend environmental improvement activities from the company itself to its business partners including parts manufacturers, general suppliers and dealers
13. 13. Grou Group p Comp Compan anies ies:
.
1962 1962 1966 1973 15
1980 1981 Honda Atlas Cars (Pakistan) Ltd .
1992
Honda Atlas Power Products (Private) Ltd .
1997
Total Atlas Lubricants (Private) Ltd . .
Shirazi Capital (Private) Ltd .
1997 2002 2005 2007
Atlas Worldwide General Trading LLC
2007
14. Organi Organizat zationa ionall Struct Structure ure:: Appendix 1.
14.1.
Comments on on th the or organiza izational st structure: -
No doubt AHL’s organizational structure is working properly; properly; all decisions are made by top management which gives instructions to Middle managerial staff, its middle management responsibility to implements these orders. Company also gets feedback from their employees mean the feedback also transfer from lower to top management.
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A flat organizational structure exist in Atlas Honda Limited as in contrast to a tall organisation, a flat organisation will have relatively few layers or just 3 to four layers of management. This means that the “Chain of Command” from top to bottom is short and the “span of control is wide”. wide”. Due to the small number number of management layers. It has greater communication between management and workers, with a better team spirit and less bureaucracy and easier decision making, mean it’s true there are three types of Management are working in the organization Top management, Middle Management and lower management. The fewer levels of management which includes benefits such as lower costs as managers are generally paid more than workers. The organic structure is more flexible, more adaptable to a participative form of management, and less concerned with a clearly defined structure. The organic organization is open to the environment in order to capitalize upon new opportunities. Organic organizations have a flat structure str ucture with only three levels of management. Flat organizations emphasize a decentralized approach to management that encourages high employee involvement in decisions. All departments are working independently but with the collaboration of other departments, the in charge or manger is responsible of their department, all employees report to their supervisor, its supervisor responsibility to submit this report the section or department in charge and after assessment this report submit to top management. Top management always encourages the team efforts and also individual’s efforts. The purpose of this structure is to create family environment in the organization and all members’ respects and pay attention to others.
ATLAS HONDA LIMITED (SKP PLANT) Quality assurance department Appendixes 2:
14.2.
Number of Employees:
More than 4000 employees are working in the organization in three shifts. Regular schedule of work will be nine (9) hours & (35 minutes) per working day, from Monday to Friday and Alternate Saturday, total of not more than forty eight (48) hours per 17
week, except where the nature of work or exigencies of the business operations require the establishment of a special working schedule.
14.3 14.3.. Sh Shif iftt Timi Timing ngs: s: GENERAL SHIFT :
Working Hours 07:45 a.m. To 05:20 p.m.
A SHIFT:
Working Hours 07.45 a.m. to 03.45 p.m.
B SHIFT:
Working Hours 03.45 p.m. to 11.45 p.m.
C SHIFT:
Working Hours 11.45 p.m. to 07.45 a.m.
15. Management: Board of Director Audit Committee Yusuf H. Shirazi
Sanaullah Qureshi Chairman
Chairman
Hisao Kobayashi
Sherali Mundrawala Member
Director
Koji Takamatsu
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Nurul Hoda
Director
Member
Nurul Hoda Director
Zaheer Ul Haq Head of Internal Audit
Sanaullah Qureshi Director Syed Tanvir Hyder Secretary Sherali Mundrawala Director
Takashi Nagai Director
Saquib H. Shirazi Chief Executive Officer
Rashid Amin Company Secretary
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Management Committee
Bankers Allied Bank Limited
Saquib H. Shirazi Chief Executive Officer
Bank Al-Habib Limited Barclays Bank PLC Pakistan Deutsche Bank AG Faysal Bank Limited Habib Bank Limited MCB Bank Limited National Bank of Pakistan NIB Bank Limited Soneri Bank Limited Standard Chartered Bank (Pakistan) Limited The Bank of Tokyo-Mitsubishi UFJ Limited Limited United Bank Limited
Nurul Hoda Vice President Marketing Hisao Kobayashi Vice President Technical Suhail Ahmed Chief Financial Officer
Sultan Ahmed General Manager Quality Assurance
Koji Takamatsu General Manager Research & Development
Mushtaq Alam General Manager Information Technology
Javed Afghani General Manager Marketing
Razi ur Rahman
Factories
General Manager Human Resources, Administration & Corporate Affairs Muhammad Khalid Aziz General Manager Plants
26-27 KM, Lahore-Sheikhupura Road, Sheikhupura-39321 Tel: (92-56) 3406501-8 3406501-8 Fax: (92-56) 3406009
Amir Ali Bawa General Manager Planning & Commercial Afaq Ahmed
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General Manager Research,
Development & Projects Shakeel Mirza
Auditors General Manager Supply Chain
F-36, Estate Avenue, S.I.T.E., Karachi-75730 Tel: (92-21) 32575561-65 32575561-65 Fax: (92-21) 32563758
Registered Office 1-McLeod Road, Lahore-54000 Tel: (92-42) 37225015-17, 37225015-17, 37233515-17 Fax: (92-42) 37233518, 37351119 E-mail:
[email protected] Website: www.atlashonda.com.pk
Hameed Chaudhri & Co. Chartered Accountants
Show Room West View Building, Preedy Street, Saddar, Karachi, Tel: (92-21) 32720833, 32727607
Spare Parts Division D-181/A, S.I.T.E, Karachi-75730
Legal Advisors
Tel: (92-21) 32576690
Mohsin Tayebaly & Co.
Branch Offices
Agha Faisal - Barrister at Law
60-Bank Road, Saddar, Rawalpindi
Tax Advisor
Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants
Tel: (92-51) 5120494-6, 5120494-6, Fax: (92-51) 5120497
4B, Zamindara Colony, Rahim Yar Khan Tel: (92-68) 5888809 5888809 Azmat Wasti Road, Multan Tel: (92-61) 4540054, 4540028, 4540028, 4571989, 4572898, Fax: (92-61) 4541690
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Hameed Majeed Associates (Pvt.) Limited H. M. House, 7-Bank Square, Shahrah-e-Quaid-e-Azam, Lahore
Warranty & Training Centres
Tel: (92-42) 37235081-82 37235081-82 Fax: (92-42) 37358817
Lending Institutions National Bank of Pakistan The Bank of Tokyo-Mitsubishi UFJ UFJ Limited
7-Pak Chambers, West Wharf Road, Karachi, Tel: (92-21) 32310142 Azmat Wasti Road, Multan Tel: (92-61) 4540028 28 Mozang Road, Lahore
(source: Atlas honda Annual report 2 010-2011)
16. MILESTONES: The company is engaged in the manufacturing and marketing of motorcycles and auto parts. Since its inception the company has experienced an unprecedented growth in its operations from a small manufacturing company to the leading motorbike manufacturer of Pakistan. Following is the chronological order of the major events in the company's history: 2010: Launched New New Model of CG 125 Deliuxe - Euro II 2010: SAFA Award for Best Corporate governance disclosures in annual report 2008 2010: Best Corporate Corporate report award by by Joint Committee Committee of ICAP & ICMAP 2009: HRM Excellence Award 2009 2009: National CSR Award 2009 2009: Launched New Model Model of CD 100 - Euro II 2009: ISO 14001-2004 Environment Certificate acquisition acquisition 2008: Established DCC (Delivery Control Control Center) Center) at Karachi Plant 2007: Successfully implemented SAP ERP ERP to its business process, process, all over Pakistan 2006: Top 25 company award by KSE 2006 Established DCC at Sheikhupura Sheikhupura Plant 2006: Annual Production reached to 360,000 22
2004: Top 25 company award by KSE 2003: Best Corporate Report award by joint committee of ICAP & ICMAP 2002: Deletion level reached to 87% and 80% for CD70 & CG125 respectively 2002: Establishment of Research and Development Wing 2002 Introduction Introduction of Gratuity 2002: Best Corporate Report award by joint committee of ICAP & ICMAP 2001: Concept of 5S dealership - Sales, Service, Spare Parts, Second hand exchange and . .
Special (Credit) sales launched
2000: Investment in Crankshaft Project 1999: ISO 9002 certification for both factories 1995: Export Agreement Agreement signed with Honda Honda Motor Company Limited Japan 1995: Exports to Bangladesh 1994 Mr. Kawamoto President, Honda Motor Company Company Limited,
.
visited AHL
1992:
Change of name to Atlas Honda Limited (AHL
1991:
Inauguration of CG125 Engine Project at Sheikhupura Factory
1989:
Export of built up motorcycles to Nepal
1988:
Merger of Panjdarya Limited into Atlas Autos Limited
1988:
Production capacity expansion III
1988:
Joint Venture agreement signed signed with Honda Motor Company Limited
1987:
Inauguration of CD70 Engine Project at Karachi Factory
1981:
Commercial Production started at Panjdarya Limited
1981:
Production capacity expansion II
1979:
Incorporation of Panjdarya Limited as Joint Venture with Honda Motor Company
.
Limited
1976:
Production capacity expansion I
1965:
Public offering of Shares
1964:
Commercial Production started
1962:
Technical Assistance Agreement signed with Honda Motor Company Limited Japan
1962: Incorporation of Atlas Autos Limited
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17. Six key prin princip ciples les of ATLA ATLAS S HOND HONDA: A: 17.1. Back to basics: The analysis of customer, competition, company, and cost is put in focus at the start of each endeavor.
17.2. 3Rs (Respect, Recognition, Recognition, and Reward): To b a great company, we need to put respect, recognition, and reward-and in that order-at the core of our management practices.
17.3. Cash is i s king : The company is cash rich, we will have the resources to beat the competition. we must reassess and re-vitalize the focus on generating and preserving cash.
17.4. Analysis, analysis analysis and analysis: The decision making procedure be supported by a combination of ”data analysis” backed by ”genba” on the spot analysis.
17.5. Customer first: The endeavor of our company need to be that we understand the company more deeply and create market or financial solutions for him to buy his “dreams product-our product”
17.6. 650 k is must must in 2011: It is our goal to to sell a minimum of 650k in 2011. For this we must use revolutionary path instead of evolutionary in everything we do.
18. 18. STRA STRAIT ITEG EGIC IC GOAL GOALS: S: 18.1. Customers Custo mers : Our customers are the reason and the source of our business. It is our joint aim with our dealers to ensure that our customers enjoy the highest level of satisfaction from use of Honda Motorcycles.
18.2. 18.2. Quality: Quality: To ensure that our products and services meet the set standards of excellence.
18.3. Local Manufacturing: Manufacturing: To be the industry leader in indigenization of motorcycles parts.
18.4. Technology: Technology: To develop and maintain distinct business advantages through continuous induction of improved hard and soft technologies.
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18.5. Shareholders: Shareholders: To ensure health and viability of business and thus safeguarding shareholders interest by maximizing profit. Payments of regular satisfactory dividends and adding value to the shares.
18.6. Employees: Employees: To enhance and continuously up-date each member's capabilities and education and to provide an environment which encourages practical expression of the individuals individuals potential in goal directed team efforts and compensate them attractively according to their abilities and performance.
18.7. Corporate Citizens: To comply with all government laws and regulation, to maintain high standard of ethics in all operations and to act as a responsible members of the community.
AHL Commitments:
AHL commitments to provide high quality motorcycles and parts. Right work in first attempt on time. Maintain and continuously improve quality. Training of Manpower and acquisition of latest technology. Safe clean and health environment.
18.8.
Nature of of Or Organization:
Automobile Sector Business Volume:
500000-unit / annum (Production).it is production target achieved in 2010.and the 2011 production target is 650000-units / annum. annum. Product Lines:
Product line divides according to Engine capacity (CC) CD-70 CD-100 CG-125 CG-125 Deluxe Competitors: Japanese Brands: -Yamaha Motorcycle, Suzuki Motorcycle Chinese Brands: - Sohrab, Pak Hero, Ravi, Metro, Star 25
18.9.
Management:
Maintaining a global viewpoint we are dedicate to supplying product of the `highest quality yet a reasonable point for worldwide customer satisfaction. Honda remains its rich culture of customer satisfaction, it being serving nation. For management we have following our management strategy.
Proceed always with ambition and youthfulness.
Respect sound theory, develop fresh ideas, and make the most effective use of time.
Enjoy your work and encourage open communications.
Strive constantly for a harmonious flow of work.
Be ever mindful of the value of research and endeavor.
Respect for all – man has priority over others.
MANGEMENT LIFE CYCLE
PLANNING
CONTROLLING
ORGANIZING
LEADING
19. STA STATEMENT TEMENT OF OF ETHICS ETHICS AND BUSIN BUSINES ESS S PRACTI PRACTICES CES for the year 2010-2011: Standard of Conduct:
Atlas Honda limited conducts its operations with honesty, integrity and openness, and with respect for human rights and interests of the employees. It respects the legitimate interests of all those with whom it has relationship. Obeying the Law:
Atlas Honda Limited is committed to comply with the laws and regulations of Pakistan. 26
Employees:
Atlas Honda Limited is committed to create a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of the company. It is an equal opportunity employer which recruits, employs and promotes employees on the sole basis of qualification and abilities needed for the work to be performed. It is committed to provide safe and healthy working conditions for all employees. It will not use any form of forced, compulsory or child labor. It is committed to working with employees to develop and enhance each individual’s skills and capabilities. It respects the dignity of the individual and right of employees to freedom of association. It will maintain good communication with employees throughout company based information and consultation procedures. Consumers:
Atlas Honda Limited is committed to provide branded products and services, which consistently offer value in terms of price and quality. Products and services will be accurately and properly labeled, advertised and communicated. Shareholders:
Atlas Honda Limited will conduct its operations in accordance with principles of good corporate governance. It will provide timely, regular and reliable information of its activities, structure, financial situation and performance to all shareholders. Business Partners:
Atlas Honda Limited is committed to establish mutually beneficial relations with its suppliers, customers and business partners. In its business dealings it expects its partners to adhere to business principles consistent with its own. Community Involvement: Involvement:
Atlas Honda limited strives to be a trusted corporate citizen and, as an integral part of society, fulfills its responsibilities to the societies and communities in which it operates. Public Activities:
Atlas Honda Limited encourages to promote and to defend its legitimate business interests.
27
It will co-operate with government and other organizations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations, which may affect legitimate business interests. It neither supports political parties nor contributes to the fund of groups whose activities are to promote party interests. The Environment:
Atlas Honda Limited is committed to make continuous improvements in the management of its environmental impact and to the longer-term goal of developing a sustainable business. It will work in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. Innovation:
Atlas Honda Limited makes innovations to meet consumer needs. It respects the concerns of consumers and of society. It works on the basis of sound research, applying high quality standards. Competition:
Atlas Honda Limited believes in fair competition and supports development of appropriate competition laws. Atlas Honda Limited and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. Business Integrity:
Atlas Honda Limited does not give or receive, whether directly or indirectly, bribes or other improper advantages for business or financial gain. No employee may offer, give or receive any gift or payment, which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. Its accounting records and supporting documents must accurately describe and reflect the nature of underlying transitions. No undisclosed or unrecorded account, fund or asset will be established or maintained. Conflict of interests:
All Atlas Honda Limited employees are expected to avoid personal activities and financial interests, which could conflict with their responsibilities to the company. They must not seek gain for themselves or others through misuse of their positions.
Compliance – Monitoring – Reporting:
28
Compliance with business principles is an essential element in Atlas business success. The board of Directors of Atlas Honda Limited is responsible for ensuring that principles are communicated to, and understood and observed by, all employees. Day-to-day responsibility is delegated to the senior management. They are responsible for implementing these principles, if necessary, through more detailed guidance tailored to local needs. Assurance of compliance is given and monitored each year. Compliance with the code is subject to review by the Board supported by Audit Committee of the Board. Any breach of code must be reported in accordance with the procedures specified by the management. The Board of Atlas Honda Limited expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles. Provision has been made for employees to be able to report in confidence and no employee will suffer as a consequence of doing so.
20. SWOT Ana Analysis: is:
20.1 0.1.
Str Strength ngth:
Organizational culture.
Good Corporate Image.
Qualified and well trained staff
High Quality Products
ISO Certified
Resale value
Customer Care
Motivated, loyal and skilled employees.
Market share and volume.
Experienced, developed and loyal service dealers network.
Largest and penetrated 4-Stroke mechanics network.
Availability of Spare parts
29
Best training facilities
Best warranty system.
20.2 0.2.
Weakne akness ss:
Lack of excellent marketing.
Electric shortfall
High Price of Products
Political instability
Low per capita income of public
Increasing Prices of Oil
Rising inflation
20.3 20.3..
Oppo Op port rtun unit itie iess:
Exploration of new markets.eg. srilanka, Africa. and other countries.
Stabilize the improve process of export to Afghanistan, srilanka, and Bangladesh to capture more market share.
Create loyal customer by various customer oriented activities/ services.
Improvement of relationship with dealers.
Newly developed Areas/Markets (e.g. Gawader)
Industry expansion
Technology upgrading
20.4 0.4.
Threa hreatts:
Competitors follow up to AHL’s dealers and offering various incentives.
Chinese cheaper products challenges
Strong competition from competitors in near future
Instability of Government
Energy crisis
High rate of Taxation 30
21. 21. Mark arketin eting g The marketing team rightly takes pride in achieving an all time high sales. The real achievement of the company has been in shouldering its responsibility as the market leader in the growth of the total motorcycle industry. Atlas Honda has taken some tough decisions in enhancing the total customer base as well as dealing with the menace of the unorganized sector. On the achievement of the landmark, Atlas Honda with the support of its large supplier network readjusted its prices to pass on the benefit to its customers. Other players followed suit and the unprecedented adjustment of prices changed the two wheeler market in the country in a way that has never been seen before. The volumes that have now become possible will provide the all-important base for more investment and even better quality. In the process, Atlas Honda is now leading the two wheeler industry towards a path that will enable it to become globally Competitive.
21.1. 21.1.1.
4 p’s of Marketing: Products:
Currently we have following products to fulfill the needs of market.
Honda CD 70
Honda CD 100
Honda CG 125
Honda CG 125 delux
31
(source: www.AtlasHonda.com)
21.1.1.1.
Honda CD 70:
Honda CD 70 is the first choice in motorcycles. The New CD 70 gives a perfect blend of Japanese technology along with charismatic design, in addition to its established superiority in terms of durability and fuel economy. Further, 2 years engine warranty not only provides peace of mind to its valuable customers but also the best value for their money.
(source: www.AtlasHonda.com)
New CD 70 is an ideal combination of attractive design with super econo-power econo-power and smokefree 4-Stroke engine, which promises you the most economical ride of your life. The new eye-catching graphics, comfortable new seat design and aerodynamic shape have made Honda CD 70 best choice and a perfect partner. Further, high resale value of Honda CD 70 proves to be a life time asset for its customers. Atlas Honda's extensive dealership network makes the motorcycle and its parts, available at your doorstep and its countrywide warranty facilities provide you trouble free companionship.
Key Features:
2 Year Engine Warranty.
New design seat and rear cowl.
New beautiful graphics.
Petrol tank with 9 liter capacity.
Latest Switch Assembly (controlled with left hand).
Strong Side Cover with Lock. 32
Non-asbestos Eco-friendly Brakes
Specification CD-70: Engine Displacement Bore & Stroke
4-Stroke OHC single cylinder cooled by air 72 cm3 47.0 x 41.4 mm 8.8:1
Compression Ratio
Clutch Transmission Starting Frame Dimension(Lxwxh) Ground Clearance Petrol Capacity Tyre at Front Tyre at Back Dry Weight
21.1.1.2.
Multiple wt plates continuous 4 speed mash Kick start Backbone type 1900 x 760 x 995 mm 140 mm 9 Liter 2.25 - 17 4 PR 2.50 - 17 4 PR 82kg
Honda CD 100
Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and Re-sale Value. All these have managed to successfully bag your trust on the New Honda CD100. It is a stunning result of advanced Japanese technology and right up there as an outstanding performer representing all the qualities that make Honda motorcycles so special.
Key Features:
Strong Footrest
Fuel Gauge Indicator
Multi Reflector Head Light
Winning Style
Econo Power 4-Stroke Engine
Double Cradle Strong Tubular Frame 33
Strong Suspension
Wider Tyre & Strong Road Grip
Crankcase Emission Control System
Bigger Brake Drum with Non-Asbestose Brake Shoe
Element Air Cleaner (Foam Type)
Utility Box
Specification Specification CD-100 :
Engine Displacement Bore & Stroke Compression Ratio Clutch Transmission Starting Frame Dimension(Lxwxh) Ground Clearance Tyre at Front Tyre at Back Dry Weight
21.1.1.3.
4-Stroke OHC cooled by air 97.1 cm3 50 x 49.5 mm 9.0:1 Weight contains different plates Continuous 4 speed mesh Kick start Double craddle tubular type 1983 x 735 x 1045 mm 160 mm 2.75 - 18 4 PR 2.50 - 17 6 PR 98 KG
Honda CD 125:
Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and Re-sale Value. All these have managed to successfully bag your trust on the New Honda CG125. It is a stunning result of advanced Japanese technology and right up there as an outstanding performer representing all the qualities that make Honda motorcycles so special. The 125 cc 4-stroke engine generates 11-Horse Power with low fuel consumption. It is ideal for high speed, long runs and rough pathways. Honda CG125 has a CDI Ignition System and a 12-volt battery (instead of 6-volt). The headlight and indicators are brighter, with an easy starting-up of the engine.
34
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
(source: www.AtlasHonda.com)
Specification Specification CG-125 :
Engine Bore & Stroke Wheel Base Starting Transmission Dimension(Lxwxh) Height of Seat Ground Clearance Petrol Capacity Tyre at Front Tyre at Back Dry Weight Suspension Front Suspension Back Final Driver
21.1.1.4.
4-Stroke OHV cooled by air 56.5 x 49.5 mm 1200 mm Kick start Continuous 4 speed mesh 1911 x 731 x 1017 mm 743 mm 137 mm 9.2 Liter 2.50 - 18 4 PR 3.00 - 17 6 PR 96.5 KG Telescopic Forke 103 mm Travel Swing Arm 68 mm Travel Roller Chain
Honda CD 125 delux:
The CG 125 Deluxe is the unique combination of power & style, a new addition in the company as 125 cc. The new power up 4 stroke engine gives same fuel economy as CG 125. An ideal model for youth and high income segment. Honda CG 125 Deluxe has heavy duty front absorbers and 130 mm brake drum with environment friendly non-asbestos brake shoes, Elegant contoured seat for better riding posture. Special designed bigger impressive wheels.
Key Features:
35
Attractive Fuel Tank with modern graphics
Speedometer with trip meter
Tachometer with Fuel Guage Indicator
Black painted silencer with stylish cover
Front hydraulic disc brakes
Back light with aerodynamic cowl
Stronger and adjustable cushion
Euro2 Technology now with ASV (Air Section Valve)
Due to 5- Gear Transmission more Power on Low RPM
Specification Specification CG-125 - Deluxe :
Engine Displacement Bore & Stroke Compression %age Wheel Base Starting Ground Clearance Petrol Capacity Tyre at Front Tyre at Back Dry Weight Transmission Frame Dimension(Lxwxh)
21.1.2.
4-Stroke OHV cooled by air 124.1 cm3 56.5 x 49.5 mm 9.0 : 1 1278 mm Kick start 136 mm 12 Liter 2.75 - 18 42P 90/90 - 18 51S 112 KG Continuous 5 speed mesh Diamond Type Steel 2032 x 758 x 1097 mm
PRICE:
Atlas Honda products are well known due to its quality and reliability. Company commitment is not to just sale products for profits but quality which enables us to win the confidents of people and customer satisfaction.
Following are our prices of our products. 36
MODEL Honda CD 70 Honda CD 100 Honda CG 125
PRICE Rs. 65900/Rs. 73900/Rs. 89900/-
Honda CG 125 Delux
Rs.111000/-
21.1.3.
Placement:
Atlas Honda has developed Pakistan’s largest after sale services network . The company has made its 5 S dealers throughout the country. These 5S stands for
Sales
Services
Spare Parts
Second Hand Exchange
Special Sales (credit)
37
According to the company these are not the simple selling points but these are the complete HONDA Company. The company has made Dealer Development Department, which is responsible for the co-ordination with dealers and training of mechanics.
The year 2010 saw improvement in almost all the major marketing areas. The 5‘S’ dealer network was further expanded dealers have upgraded their dealerships to a modern, global standard. The resultant image enhancement in the eyes of the public has generated more customers for the company. The recall value of the promotion has been rated as one of the highest ever. This policy has further cemented the value of the product and a greater number of first time users are now Atlas Honda customers.
COVERS ALL PAKISTAN
Atlas Honda has Pakistan’s biggest
sales
network. The company focused all over
the
Pakistan, they sale their products by
their
authorized dealers.
Delivery System
Since Honda Company established, company has given the contract to Saleem Raza Goods Transports Co. for delivering their products to their sales points. They have very good relation with the company and they are contributing their best in growth of company.
21.1.4.
PROMOTION:
The company focuses on its promotion campaign very seriously. There are several internal and external programs to increase its sale.
Service Development Department Department
38
The company has made Service Development Department, which is responsible for the coordination with dealers and training of mechanics. The company is mostly using push strategy to promote its motorcycles. Like CD 100 promotes by following strategy str ategy
As CD-100 is their new product to promote it they force the dealers to keep a CD-100 bike with them so that when customers come they offer him to try the the new bike.
The company is offering package to dealers that for every ’x’ bikes of CD 70 or CG 125 you have to take “y” bikes of CD 100. This also forces the dealers to try to sell this new product.
Technicians Training
For the promotion of its products the company has trained 7000 mechanics. These mechanics are not only providing repairing services to the people but also publicize the products of company by word of mouth.
For the promotion of its products the company arranges rallies. Print media
The company is giving different types of commercials on different print periodicals.
21.2.
Sales:
Types of Sales:
Sales to Customers through Dealer Network
Sales to Institutes through Institutional Sales Network
Exports to Bangladesh, Sri Lanka and Afghanistan.
Market Segmentation:
Middle Middle Class
Middle Lower Class
Customer Type:
Buying Situation
39
First time & Straight Re-buy
Usage Rate
High Medium
Purchasing Procedure
On cash/Credit
Honda Motorcycle’s Motorcycle’s positioning with respect to its Competitors: Honda Motorcycle has brand competition with Suzuki and Yamaha and also with Chinese Motorcycles.
Competitors: Major competitors of the organization:
Market always creates competition because there is no restriction for any one, everyone try to compete other. AHL competitors are:
Dawood Yamaha Motor Company. Sehgal & company. Suzuki Motorcycle. Sohrab Motorcycle.
Chinese Brands: Ravi, Sthalco, Super Power, Metro, Super Star, Habib, Pak Hero, Super Asia, New Asia etc.
Direct Competitors
Suzuki
Yamaha
Chinese & Local Manufactured Motorcycles
Indirect Competitors
Automobile Industry
Target Market Strategy:
Multiple Segment Strategy
Procedure of Sales:
40
Orders are noted from the retails directly and not from distributors with payment and are forwarded to Account Section and Sales Office. Then co-ordination is done with Logistics Department about the availability of motorcycles & trucks and their capacity.
21.3.
Service Department:
Main Functions:
Availability of Spare Parts where they are needed
Providing repairing services throughout the country
To server our first customers (dealers)
Asking the dealer to PDI (Pre Delivery Inspection)
Two free checkups are offered to customers
Dealing with warranty claims
Activities:
In-House
Field
Training Period:
7-Days (Honda Service Training Course)
3-Days
1-Day (Refresher Course)
Free Service Camps
21.4.
Working of Marketing Department:
To conduct marketing research
To identify market potentials
To develop marketing plan
To implement marketing strategies
To communicate and coordinate with the dealers
To search for new dealers
To develop the existing dealers
To look for the new products
To take orders from dealers with the help of territory in charge and regional managers 41
To conduct promotional activities
To forecast sales
To set targets at the national level, regional level and for dealers with the help of regional managers, territory in charge and dealers themselves
To coordinate with the production department
To finalize items to be produced each month with the coordination of production planning a control department To coordinate with the finance department regarding availability of resources for different
marketing activities
To coordinate with the logistics department for the delivery of motorbikes to dealers
To monitor and control existing dealers
To train 5s dealers regarding provision of service facilities to customers
To educate dealers regarding customer care and customer dealing
21.5.
Structure of the marketing Department
Appendix 3
21.6.
Brand:
What is Honda?
Honda is an entity that realizes the dreams of individuals and spreads joy to people. Honda's philosophy, unique corporate corporate culture, pursuit of challenges that fulfill individuals' dreams and variety of products and activities born of challenges will remain the foundation of the Honda brand. We will continue building on our history of realizing people's dreams.
Honda's Driving Force:
The expectations and appreciation of people around the world for our dreams. People see Honda as pursuing its dreams and always remaining a step ahead of the world. This image and the people’s appreciation of our outlook will continue to be the driving force of the Honda brand.
42
Honda's Goal in Branding:
To create a brand that is supported by people’s expectations and appreciation.
Global Brand Slogan:
Everyone has a dream, some goal or activity that gives their life a deeper meaning and sparks passion. When we pursue a dream, we feel empowered. This power, power, in turn, connects us to others who share the same dream. It gives us the strength to overcome great challenges and inspires us to spread the joy of our dreams to others. Ultimately, the power born of a dream is a creative force, capable of producing revolutionary ideas. Honda encourages all is associates to pursue their dreams. That is why we say we are a company built on dreams. In the new century, the power of Honda's dreams will continue to lead new insights and technologies in automobiles, motorcycles, power products, parts and other fields of mobility that are just beginning to be imagined. Dreams are the very essence of Honda. The dreams of our associates, customers, and supporters make Honda what it is today. Our highly original ideas and free thinking have surprised the world on many occasions. Honda will continue to be Honda in the 21st century as long as we have our dreams and orignal thinking. We will keep on dreaming and challenging ourselves to realize our dreams.” What will we come up with next?” We will continue creating exciting products and realizing people’s dreams and expectations. Our slogan For Honda to remain Honda, and for everyone to realize their aspirations, we must believe in "The Power of Dreams".
43
22. 22. Fina Financ ncia iall Anal Analys ysis is::
44
45
46
Year ended March 31
Statement of value
adition 2011
Rs.in’
2010
%
Rs.in’000
%
99.2% 0.8%
29,830,936 239,047
99.2% 0.8%
100.0%
100.0%
100.0%
000 Value Addition Net sales including sales tax and special excise
38,179,4 43
duty Other operating
299,337
income
38,478,7 80
Value Distribution Materials and
28,258,5
73.5%
22,036,212
73.3%
services
15
18.3%
5,441,704
18.1%
7,050,50 6
4.2% 0.2%
1,340,864 97,970
4.4% 0.3%
1.3%
353,556
1.2%
2.5%
799,677
2.7%
Governement taxes and duties EmployeesÕ remuneration and benefits
1,623,50
Financial charges to financiers
1
Dividends to shareholders
80,416
Profit retained
500,417 965,425
Total Value Distributed
47
38,478,78 0
100.0%
30,069,983
100.0%
23. Introduct Introduction ion of departmen departments: ts: All departments working independently but with collaboration of other departments each department head is responsible for his /her department and brief about their department progress to higher management.
48
23.1.
Logistics Department:
Under vendor improvement Program Company ensure timely supply of raw material; reduce rejection in parts and ensuring quality under the assistance of quality assurance department. Improve the sourcing of vendor to make them company strength. Purchase department control all purchases other than auto (bike) like stationary, kitchen items, office supplies and all type of purchase but not motorbike or parts related... Vendor procurement department purchase parts and other auto related parts from local, head office, and from import. Many parts are manufacture through in-house facility of AHL as frame body, paint, hub, fuel tank, cylinder head casting, and shocks/cushions of bike in Sheikupura plant. Fourth department under logistics is dispatch or delivery of finished goods (motor bike) to the market as required by marketing department. Under this logistic department control and handle the mobility and transition of company product through company transport (trucks). The main functions of the AHL can be summarized in the following ways: Main Functions:
Vendor Procurement (VP)
Local Purchase
Finished Goods Dispatch
Vendor Improvement Program (VIP)
Out Source Processing (OSP)
23.2.
Production Planning Control:
This department control overall production, and also planning for future and define the production level. Coordinate with the marketing department department for the production of the bikes. Defining the items to be procured locally. To conduct warranty claim down meeting for the sake of reducing the warranty claims. To define items to be procured from Honda Japan. Coordinate with quality assurance department for the maintenance of quality standards. Man management to mobilize the manpower for the execution of production plan Production department has three plants: Assembly Plant: Engine Plant:
49
Casting Plant:
Functions:
Issuance of Production Plan
Execution of Production Plan
Forecasting Production on the basis of Sales Forecasting of Marketing & Sales Department
Target setting in Production daily, weekly, monthly and yearly basis
Synchronization between all the department into meet production targets
Two levels of Planning
i.
Macro Level Planning
ii.
Micro Level Planning
23.3.
Quality As Assurance De Department:
This department assures at Atlas Honda Ltd. that motorcycles here are produced with Highest Quality and their parts.
This department is dealing four sections.
In Coming & Receiving Unit
Quality Assurance vendor (QAV)
In House Section
Final Inspection
23.4.
I.T Department:
Transition period in it department is going on and company is shifting its entire system from oracle developer to SAP (system application & products data process. For this purpose Siemens professionals are implementing SAP modules in head office and providing training
50
to AHL executives to be familiar with SAP. Without SAP it is difficult for it department to prepare global reports as per required by our foreign investor Japan. And there are lots of hurdles to receive timely information. From September 1 SAP will be implemented company has purchased its 6 modules out of 21 modules. So it will be great transition period in company’s IT department. AHL’s Lahore and sheikhupura plant is linked with each other through radio link on one server. So information can be shared on the same time on the same places. The main advantage of this change is time saving, efficiency enhancing and generating extra storage for data. Following are the functions of the IT Department:
Main Functions:
Software Development
Troubleshooting
Oracle & Developer 6AI
Windows upgrading & installation
UNIX
Lotus Notes
LAN & WAN System
Use of WAN
23.5.
Corporate affairs:
All the company matters at corporate level are handle by corporate affairs department. Like dealings with manufacturers union (PAMA, Pakistan automotive manufacture association.). Dealings with government in terms of taxes, import tariffs and other matters etc.
Areas of activities:
Engineering development board:
Its facilitates imports and less import duty by fulfilling the SRO (statutory regulatory ordinance.) and took facility of less duty. PSQCA:
It controls quality. And standardize it. If any product meets its standards it gives a certificate for production. And this certificate is required to be renewing after a specific time period. 51
PAMA (Pakistan automotive manufacture association): association): All the government affairs are
handled through PAMA. E.g. cost, taxes etc.
Valuation:
Helps to stop misuse of law. E.g. other motor cycle manufacturers imports parts from china and say them to paste less price tag and take original price from us to save themselves from taxes. So it was suggested that tax should be on value or import item not on price. Valuation of parts are done and duty will be according to their assigned value.
23.6.
Human Resource Department:
HR Department is the most impartment department in any type of organization. It depicts the outer look as well as inner look to the market about the company operations and image. HR Department in Atlas Honda Ltd is increasingly invited to participate in strategic planning and organizational goal setting. It has also becomes involved in personal and career development (to prevent stagnation and to develop talent), talent), in interpersonal relations (to assure teamwork and accurate accurate communication), in attending to associates’ needs (to demonstrate the organization’s concern for them), and in associate participation in work life (to help associates perform at their full capacity).
Objectives:
Meeting Organizational Goals
Developing Future Managers
Major Functions:
Human Resource Planning
Forecasting Human Resource Needs by keeping touch the concerned departments
Competitive Influences
Retaining Employees
Attracting Employees
Labor Relations Influences
Balancing Labor & Management concerns
Organizational Structure
HR Analysis 52
Job Analysis
Staffing
Training & Development
Compensation Management
Employee Evaluation
Employee Movement & Replacement
Polices & Rules On & Off Timing:
Plant
7:45am
~ 520pm
Head Office
8:20am ~ 5:40pm
Break Timing
1:15pm ~ 1:45pm
For Late Comers:
If less than 30 minutes late (Less than or equal to 4 times in a month), then it is marked as 1 absent.
If more than 30 minutes, then it is marked as short leave
Leave Policy:
Compensation Privilege Leave (CPL) in lieu of working in off day.
Give Rs. 750 for Grade 12
Can get leave in working day
Retirement Policy:
Age:
60Years
What What’s ’s giv givee at at ret retir irem emen ent? t?
20 gram gramss gol gold d (Gi (Gift ft))
Termination Rate
2%
Resignation Career Development
High Management System Grades Job Grade Personal Grade Management 53
Intimation Period (1 month before)
Executive Grades:
12 ~ 1
Others:
20 ~ 13
Workers:
0
Minimum time period for promotion in each grade = 2 yrs
Human Resource Planning: P lanning: 1.
Requisition Slip from concerned department
2.
Approval
3.
Advertisement
4.
Develop Application Pool
5.
Short Listing of Applicants
6.
Test of of Applicants (5 (50% marks ar are required to appear in 1st Interview)
7.
1st Interview (GM of concerned department, Manager HR)
8.
2nd Interview (CEO, GM HR & Admin, Manager Admin & IR)
9.
Complete ete Me Medical Examinati ation from Shaukat Kh Khanum Mem Memorial Ho Hospi spital
10.
Orientation
11.
Complete Personal File
12.
Entry in Personnel System
13.
Probation Period (6 months)
14.
Issue Confirmation Letter
Training and development:
Training need assessment (TNA) (supervisor suggest training)
Annual training
Training other then TNA (training need assessment)
Benefits:
car and motor cycle (grade 11 and above car, grade 12 and 13 motorcycle, grade 15 motor cycle with installments)
bonuses 54
gratuity provident fund
group life insurance
health insurance
personal benefits
compensatory leaves
allowances
personal loan
Performance Performance appraisal system:
PDC (plan, do, check) process is followed for the appraisal system. Plan is done by the people. Performance is also evaluated with by relative evaluation process. The evaluation process is as follows.
send appraisal form
self appraisal
set objectives
rationalization of rating with HOD
record HODs comment
post appraisal interview
collection of all forms by HOD
HOD should write a separate note, (if required, recommend salary adjustment)
23.7.
Stores Department:
The main function of this department is to provide parts, materials and services to production without any kind kind delay, and ensuring that there is no stop in production production assembly line of motorcycles in Atlas Honda Ltd. The second function of this department is to keep record of all the parts and materials, which are issuing and receiving.
Store Department can be classified into six further sections. Which are as follows: 55
Receiving Section
Issuing Section
Raw Materials Store
General Store
23.8.
Finance Department:
This department deals with the financial transactions and financial management of Atlas Honda Ltd. This is providing services six different categories.
Sales Taxation
Salary Structure
Inventory
Stores
Machine Tool Costing
Imports transactions
Overhead Transactions
Accounts payables
Financial Feasibility reports
Financial statements
Financial reports
Accounts reconciliation
Machine Costing
Product costing
Inventory Flow costing
Sales taxation
In atlas Sales tax is a department which is working on two type of sales tax the account manage vendor’s tax on their sale and also manage tax payment on our product sale.
Input sales tax
56
In input sales tax the department has to deduct present rate of sale tax from vendor’s cheque and Sale tax is claimed by the government
Output sales tax
In output sales tax we have to pay tax on our sales
Withholding tax:
Sales tax department also deduct withholding tax from vender cheques there are two types of withholding which is deducted on good the department deduct 3.5% on goods and deduct 6% on supplies The department reconciles receivable or payable by ‘fBR at monthly
Account payable:
In vendor payment department invoices come from billing department the department have to verify bill invoice and vendor specific code and enter payment in his account and create cheque for him. some time department directly paid or directly received payment from supplier or customer they create three type of voucher for the this purpose Cash received voucher in this voucher the receive cash against sale of their scrap cash payable voucher in this type they pay cash to private private contractor for their service or good .
Payroll
1. Salaries and allowances
Total attendance received from HR department department amount finalized by payroll department according to number of hours of working in this account the accountant make a voucher on the basis of bill then bill is signed by finance manager .So I have to enter in computer in SAP system .over time is also claimed as per grade . Payroll department deduct conveyance , medical ,EOBI and also canteen charges from employees salary and also deducted advances , Salaries & wages A\c To Bank A\c
***** *****
FOH
Employees who are linked by manufacturing and by production department expenses enter into FOH by SAP specific code e.g. 5210100 57
those salary
Admin
Employees who are linked by Administration department those salary expenses into Admin by SAP specific code e.g. 5310100 5310100
Selling
Employees who are working in regional offices and in head office those salary expenses enter into selling by SAP specific code e.g.5412000
Bank reconciliation reconciliation
Bank reconciliation deal with different types of banks in this department Atlas finance system mostly ,make payments through bank and also receive cash through bank so at the end of the month department reconcile its balance with the bank it is happened at every end of the month
24. 24. CUL CULTURE TURE:: Culture is a set of defined values, norms and beliefs that are commonly held among the members of a particular organization or society. Culture is not always in the written form, rather this is something to be observed and watched out with open eye and mind. How culture develops:
Culture is generally transmitted into new member through
Founders intentions
From the rituals and the stories
From the values its employees held.
And finally it is transformed from one generation to the next one. Shared Values:
Shared values are the common common beliefs held by the the members of a particular organization. In shaping an organizations culture, shared values do play a very vital role and generally employees are recognized by the values they keep.
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When we talk about that whether an organization has strong or the weak culture, the key distinguish parameter is the shared values. values. If organization values are most commonly commonly shared among the members of a particular organization than we would say that it has a strong culture otherwise organization is characterized by the weak culture. Values are not always the explicit ones, rather when some values are strongly and commonly shared, than these become as taken for granted and need not to be told again and again.
25. 25. Crit Critic ical al Anal Analys ysis is:: The thing is E-Business E-Business organization is not interested to start business through internet because organization says it is not traditional way of marketing but theory say’s e-business is the newest way for marketing because it cheapest, timeless and cost less way of marketing and you can earn and extend your business across international boundaries. Organization should give importance to marketing department of the organization. Representatives think that we are market leaders so there is no need of marketing. Organization should concentrate on greater quality in minimum cost. Because people buy competitor Chinese brands just because of one reason that is price. So we can increase sales by price reduction.
25.1.
Future prospects of the Organiza ization:
Company wants to provide more facility to their customer and provide better services, for this purpose company projecting to generate more dealers in different location, company also targeted their production and wants to make 500000 units this years, and company will try to achieve target 650000 units next years, and incoming era company will expand its manufacturing plant to I million units. Company also exporting exporting their bikes in different countries like Sri lanka, Nepal, Afghanistan etc, company introducing new model in different CC next year. Company is 14001 certificated from ISO.
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26. Conclu Conclusio sion n & Recom Recommen mendat dations ions:: Conclusion:
Training at AHL is really a true learning experience. Atlas management is striving to modernize Company operations by adapting applicable aspect of research and theory and more specifically. It has Not only taught the utilization of bookish knowledge into practical field but also the ethics of Professional life .AHL is leading ‘motorcycle” manufacturing company in Pakistan atlas has largest in House manufacturing capability at its Sheikhupura & Karachi plant .AHL management like to fully Concentrate on kaizen rules .it is japans brand so they don’t compromise on quality. The internship Remains the magnificence memories for the reason of AHL’s hospitality & efforts of my seniors to Teach their activities. It would be helpful in my further studies
Suggestions:
Atlas Honda’s culture is their competitive edge in terms of administration and human resourse. Company must remove flaws to make it effective for the employees loyalty. A consideration is required to improve the transport conditions and facility. Small vans should be replaced by Coasters, which have greater facilitations for employees. And scanners are installed for time saving. Then why work is done manually. Manual work and scanners both have increased the time.
Security staff of the plant requires some training about some social values. And how to guide new comers. How to welcome them.
There should be person incharge of canteen who have degree in hotel management. So that to increase better facilitation. Canteen facilities should also be improved in terms of crockery and cleanliness. The card in/out booths should at every gate instead of specific locations.
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E.g. some employees from skp inn their card at gate 1 and enters in factory from gate 3.this is wastage of time. Today almost every organization is going to conducting e-business by developing their friendly user, dynamic, attractive in appearance and covering all the aspects of business, web sites. AHL must develop such web site, which is according to company’s image as a market leader in motor bike industry and also containing some sections that take directly feedback from customers about their satisfaction level with our products and in order to enhancement of product line. Equality is company’s major characteristic. Providing the same image of equality at all levels.
There should be increase in frequency of inspection sampling. The production of AHL grew dramatically during the past few years and the company is now planning to produce more than 650000 motorbikes for the current year. As production has increased there should be increase in the number of people involved in the inspection process. Due to increased production there is a greater level of burden on quality inspectors. By increasing the number number of quality inspectors we can increase the frequency of quality inspection. Due to lesser frequency of inspection there are greater chances of defective items being produced. This can have a negative impact in the minds of the customers.
The survival of the two-wheeler automobile business depends on providing quality services to customers by providing them the quality products. The concept of 5S serves that purpose. The main vehicle of 5S is our dealer. If they don’t realize in full the spirit of 5S by not having the belief that sale is the only profit taking activity rather other services like service, spare parts, special sales and second hand exchange are the services which complement the sale, it is difficult to satisfy customers. The efforts should be made to realize them the real benefits of this 5S system since many dealers don’t take serious.
There are number of illicit practices undergoing in the market like under pricing, over charging, black marketing and supply of fake spare parts. AHL must take steps to make its dealers abide by its policies to better serve the market.
In future we see great sensitivity for environmental concerns. The paint shop of the Atlas Honda is excreting the waste, which is not good for the environment. At the moment there is 61
no proper waste treatment system available. There should be a proper waste treatment system. This can really elevate the image of the company. On Friday there is a break from 1:30 pm to 2:30 pm for lunch and to offer the prayer. Time is sufficient but in such a large group like Atlas Group, there will be a mosque inside the factory in which all members can offer prayer.
Employee rotation from one department to the other department for handling multiple tasks and to train them for emerging situations. Technological upgrading within Short span of time so that plant must to be a strategic advantage or competitive edge not only in Pakistan but in Asia.
27. My intern internsh ship: ip: 27.1. 27.1.
SCOPE SCOPE OF LOCAL LOCAL PURCH PURCHASE ASE DEPART DEPARTME MENT NT
TO ARRANGE IN TIME SUPPLY OF LOCAL PURCHASES / SERVICES FOR THE PLANT RELATING TO FOLLOWING CATEGORIES, SO THAT TARGETS OF ALL DEPT. / SHOPS ARE ACHIEVED IN ORDER TO ENSURE SMOOTH PRODUCTION.
1.
OIL & LUBRICANTS
2.
PAINTS
3.
TOOLS & HARDWARE
4.
PACKING MATERIAL
5.
GASES & WELDING ITEMS
6.
ELECTRICAL ITEMS
7.
COMPUTER & ACCESSORIES
8.
STEEL & IRON
9.
CHEMICALS / THINNERS
10.
PRINTING & STATIONARY
11.
UNIFORMS
12.
SERVICES SECTOR (ALL AREA).
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MOREOVER, NEGOTIATIONS AS MEMBER PRICE COMMITTEES FOR PURCHASE OF MATERIAL AND WORK ORDER FOR NEW PROJECTS ETC.
27.2 27.2..
LOCA LO CAL L PURC PURCHA HASE SE SYS SYSTE TEM M
PROCEDURE:
1.
Init Initia iall docum documen entt for any any pur purch chase ase need need will will be be “Pur “Purch chase ase Req Requi uisit sitio ion” n” (PR (PR)) (Ref (Ref:: LP-0 LP-0SS03, pg # 11). All departments shall initiate PR for any item required to be purchased. The concerned Departmental Head or Manager Operations shall sign the PR, complete specification (i.e. dimensions, brand name, country of origin, unit & packing standard etc.) shall be mentioned on PR.
2.
Purc Purcha hase se Req Requi uisit sitio ion n duly duly sig signe ned d by the the sho shop p in-c in-cha harg rgee and and auth author orize ized d and and appr approv oved ed by by Departmental Head / General Manager will be submitted to Raw Material Store (RMS). RMS, after checking the existing stock position shall prepare a system generated PR Summary (Ref: LP-0S-04 ,Pg.# 12), which shall contain code No. & Qty. of each item duly signed by Manager Stores.
3.
Only Only Acc Accou ount ntss Dept Dept.. (wit (with h the the assis assista tanc ncee of I.T I.T Dep Dept. t.)) shall shall be aut autho hori rized zed to gen genera erate te code for any new item, which is required to be purchase.
4.
RMS RMS will will also also ens ensur ure/ e/ con confi firm rm tha thatt comp comple lete te spec specifi ificat catio ion n i.e. i.e. dime dimensi nsion on,, bran brand, d, mod model, el, origin, unit & packing standard of each item is mentioned on PR to eliminate the chances of wrong purchasing or rejection and delay.
5.
At lea least st two two quo quota tati tion onss (Sam (Sampl plee Ref: Ref: LPLP-0S 0S-0 -05, 5, Pg. Pg. # 13) 13) shal shalll be obt obtai aine ned d from from two two different suppliers (registered or un-registered) for general items except proprietary items or those items, which are available only with the sole Distributor / Agent / Importer / Manufacturer and customize as per user demanded. (In SAP system called Request for quotation “RFQ”) There are few exceptions in which two quotations not required:
-
Some su suppliers ar are supplying few items re regularly so in such case there is is no need to get 2nd quotation.
-
Small value items suppliers i.e, Karyana item, in case of such items they are purchases from single source, Makro, Metro etc. So in this case 2nd quotation is not required. In case of Cash purchases there is no need of 2nd quotation.
-
63
-
When some supplier unable to attend the price committee, in such case his quotation signed after discussion with him on telephone.
6.
Manag Manager er Log Logist istic icss and and his his tea team m will will tak takee all all neces necessar sary y meas measur ures es to to ensu ensure re com compe peti titi tive ve purchases by:
a)
Obtain, check and compare the rates of various parties through Telephone enquiry, E-mail, Fax, personal visit etc.
b)
Visit the market for physical checking of existence as well as reliability of suppliers. (In SAP system called creates quotation “CR”)
7.
After After obt obtai aini ning ng quo quota tati tion onss from from vario various us part partie ies, s, Pur Purch chase ase Dept. Dept. sha shall ll pre prepa pare re a Sys Syste tem m generated “Comparative Statement”(Ref: LP-0S-06, Pg.#14) System shall Recommend the party Whose offer is lowest provided it qualifies in terms of specifications and meet the required Delivery schedule of concerned shop. In case, the lowest bidder fails to qualify & Show his inability to meet the Delivery Schedule, the next higher bidder will be considered. (In SAP system Price Comparison List called “PCL”) In case case of of rere-so sour urci cing ng exis existi ting ng supp suppli lier er pri price ce wil willl be be tak taken en as as 1st quotation and New
8.
supplier quotation will treat 2 nd in such case no need to get new quotation from existing supplier. We can see the last purchase price in system for verification.
9.
In case case,, all all offe offers rs do do not not meet meet the the exa exact ct req requi uirem remen entt of the the use user, r, the the mat matte terr shal shalll then then be be referred to user Dept. for suitability of specification and Purchases shall be made accordingly.
10.
After After scrut scrutiny iny of all quotati quotation on docume documents nts,, Purch Purchase ase Dept. Dept. shal shalll submi submitt Inden Indentt & Quotations to a committee called “Price Committee” which will comprise of following members:
•
Manager Finance / CFO
•
Manager Logistics / G.M Supply Chain
•
Concerned Manager (if needed)
11.
Price Price Commi Committee ttee shall shall furth further er nego negotia tiate te price price with with the lowest lowest bidd bidder er and and shall shall ask/kn ask/know ow the justification of price quoted by the supplier (If needed). 64
12.
On the the basi basiss of recomme recommenda ndatio tion n of Price Price Comm Committe itteee a system system generat generated ed Purc Purchas hasee Order Order (P/O) ( Ref: LP-0S-07, Pg.# 15), shall be issued in favor of the Supplier; the following shall approve P/O. For value up to Rs. 500000/Jointly by Manager Finance, Manager Logistics & Manager Operations.
•
For value above Rs. 500001/Jointly by G.M.Finance, G.M Supply Chain & G.M.Plant or G.M. of
•
concerned Dept. 13.
Purcha Purchase se Order Order shall shall cont contain ain three three leav leaves, es, distrib distributi ution on of each each leaf leaf will will be: be: - Whit Whitee (Ori (Origi gina nal) l)
= Supp Suppli lier er’s ’s copy copy
- Blu Blue
= Pay Payable able sect sectio ion n copy copy
(sec (seco ond) nd)
- Yell Yellow ow (Thi (Third rd))
= Fina Financ ncee Dept Dept.. (Mas (Maste terr reco record rd copy copy))
All goods purchased by the Local Purchase Dept. shall be received by RMS along-with Delivery Challan of the concerned party. RMS shall then arrange inspection of goods in terms of quality, quantity and specific requirement of the user’s Dept., already mentioned in PR and acknowledges the Receipt within 24 hours of receiving.
14.
In case case of of reject rejection ion of item item or or lot, lot, reaso reason n of rejecti rejection on shal shalll be mentio mentioned ned on on RR & Local Local Purchase Dept. shall be informed who shall arrange to return the rejected goods to the concerned supplier’s on proper Gate Pass through RMS.
15.
Local Local Purch Purchase ase Dept Dept.. will will receiv receivee Suppl Supplier ier’s ’s Bills Bills,, which which shall shall be be check checked ed & matche matched d with Purchase Order, Delivery Challan & Goods Receiving Report. After verification Bill will be passed on to Accounts Dept. along-with copies of Purchase Order, Challan & Goods Receiving Report for processing of payment.
15.
Local Local Purch Purchase ase Dept Dept.. will will try try their their best best to to arran arrange ge to provid providee the the requir required ed item itemss withi within n shortest possible time. However, Local Purchase Dept. shall ensure to provide items as follows:
For Normal Indent / readily available items not more than 15 working days.
•
65
•
For Imported items normally 04 ~ 05 months.
•
Paint / Thinner manufacturing 01 ~ 1 1/2 month
•
Printing Items, 03 ~ 04 weeks.
CASH/EMERGENCY PURCHASES:
Practice of Emergency/Urgent purchases shall be discouraged. However, in case of
•
extreme emergency, G.M. of concerned Dept. or G.M. Logistics shall be authorized for such purchases and cash purchase limit shall not exceed Rs.20,000/Rs.20,000/- for any single item. In case of machinery Break down / Maintenance job requirement, Manager Operations shall authorize such purchases with consultation of Manager Maintenance & National Manager Logistics
Organization chart: logistics Appendix 4
Local purchase: system flow Appendix 5 (source: www.AtlasHonda.com. Procedural manual 2010-2011. ISO manual)
27.3 27.3..
PURC PURCHA HASE SE OF CAPI CAPITA TAL L GOO GOODS DS
The Procedure for purchase of items of capital nature shall be as follows.
1. Request Request shall be be raised by the user Departm Department. ent. Manager Manager of the the concerned concerned Department Department on on a standard form titled “CAPITAL EXPENDITURE REQUEST” REQUEST” and called CP-1 (Ref: LP-0S08, Pg.#16), shall initiate purchase, mentioning details of the purchase and estimated expenses along with its justification. CP-1 (Ref: LP-0S-08, Pg.#16) form shall then be sent to Accounts Department duly Recommended by Head of the Department / G.M.
2. Accounts Accounts Department Department shall shall analyze analyze the CP-1 (Ref: (Ref: LP-0S-08, LP-0S-08, Pg.#16 Pg.#16)) with regard regard to Budget Budget Provision & expenses made so far, against Budgeted amount.
3. CP-1 duly duly verified verified by CFO CFO shall shall then be sent sent to CEO CEO for final final Approval. Approval.
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4. Concerned Concerned Departmen Departmentt shall then then raised PR PR to RMS from where where compile compile P. R. statemen statementt shall be made and handed over to Purchase Department along with CP-1 (Ref: LP-0S-08, Pg.#16) duly approved by CEO.
Item-wise financial limits of Approving authorities shall be as follows, provided it is included in the Budget.
I t e m s.
Approving Authority
•
Cars under Company policy
GMF / GMHR
•
Motorcycles under Company policy
GMHR
•
Replacement items & other items not
CEO/GEC
Exceeding a value of Rs. 1,000,000 per item
•
Any item other than above
GEC
Purchase Department shall then proceed with procurement action in accordance with the procedure laid down for general items.
Record Keeping: Record maintained in Purchase department usually kept for one year, after one year the same transferred to record room.
28. 28. Worki orking ng spe speci cime mens ns Perchase requisition (appendix 6) Quotation (appendix 7) Perchase order (appendix 8) Comparison statement (appendix 9)
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FINISHED GOOD DISPATCH SYSTEM:
PROCEDURE: •
After production of motorcycle from assembly line ,final inspection staff of quality assurance department checks these and in case of no fault (ok) a green sticker is put on the back light cover of each motorcycle. If some rectification is required the same are separated for re-work immediately or at later stage depending upon the nature of re-work
•
All O.K. motorcycle are then handed to over logistics department for onward delivery to sales dealers .these ok motorcycle are shifted into finish goods stores which is maintained by logistics dept while executing physical dispatch of motorcycle logistics dept ensures that F.I.F.O(first in first out)system is followed except special deliveries i.e institution etc. PROCESS:
Major steps involved in finished goods dispatch process include. •
Fleet and stock information
•
Allocation from sales dept.
•
Summarize delivery data into bar code scanner
•
Physical bar coding of motorcycles as per delivery order.
•
Handing over of m/c to the transporter’s rep. as per truck capacity.
•
Transfer bar coding data into delivery system.
•
Print out of delivery orders/gate passes with engine & chassis nos.
•
Signing authority of delivery order/gate passes.
•
Distribution of delivery order/gate pass.
•
Issue of motorcycle accessories. FLEET & STOCK INFORMATION:
•
Daily movement of trucks is monitored by the logistics dept. through a report called “Truck Movement Report”, however physical availability of finished goods truck is also confirmed from the transporter on telephone in the morning on daily basis. The same is communicated to representative of National Sales Manager at AHL, Lahore.
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•
The same time tentative availability of Deliverable Stock (model-wise & color wise) is also conveyed NSM office LHR, where stock is distributed among different regions and instructions are passed-on to logistics as well as regional sales managers accordingly. ALLOCATION PROCESS:
•
Logistics dept manages to obtain online dealer-wise allocation from the Regional Sales Offices, on the bais of distribatuon of stock by NSM office & availability of “ready for delivery” stock.
•
Sales dept hand over system (SAP) generated allocations as per trucks capacity to logistics dept. SUMMARIZE DELIVERY DATA INTO BAR CODE SCANNER:
•
Delivery data (i.e. dealer-wise, model-wise & color-wise quantity) is then entered into “Delivery System” which is summarized/loaded into bar code scanner and bar code list is generated by the system.
•
Print out of bar code list is obtained for cross-checking of dealer0wise Qty, model & color with allocation. PHYSICAL BAR CODING OF MOTORCYCLES:
In order to bring time efficiency in delivery and to eliminate possible human error in reading/writing of engine & chassis nos. of m/cs, bar coding system is used. Engine & Chassis no. of each motorcycles are scanned, these are handed over to the representative of the transporter for physical inspection prior to loading into delivery trucks. The transporter keeping into mind town-wise locations arranges truck-wise loading. HANDING OVER OF M/Cs TO THE TRANSPORTER:
As soon as motorcycles are scanned, these are handed over to the representative of the transporter for physical inspection prior to loading into delivery trucks. The transporter keeping into mind town-wise locations arranges truck-wise loading. TRANSFER BAR CODING DATA INTO DELIVERY SYSTEM:
Data scanned into bar code scanner is then transferred into delivery system (SAP) where particulars of motorcycles are posted in system as per bar code list and complete delivery order/gate passes are generated through system. SIGNING AUTHORITY OF DELIVERY/GATE PASSES:
Dealers accounting of accounts dept is authorized to sign all delivery order/gate passes before physical delivery of motorcycles, so system generated signature are automatically pasted on delivery orders from accounts dept. 69
Only authorized persons from logistics department can sign delivery orders/gate passes. DISTRIBUTION OF DELIVERY ORDER/GATE PASSES:
Once Logistics incharge or authorized person signs the delivery order/gate passes, transporter’s representative also sign the same and copies are distributed as follows: 1. White copy (original) ---
custo stomer copy to deal ealer
2. Pink copy
- --
acknowledgement
3. Blue copy
- --
gate office copy
4. Green copy
- --
sales & godown copy
ISSUANCE OFMOTORCYCLE ACCESSORIES:
Dispatch section receives accessories from CKD stores through IR by Production department. Following accessories are handed over to the transport along with each motorcycle. Back view mirror AGS battery (dry) Standart tool kit Free warranty & service card Owner manual Delivery truck finally leave the factory gate after security staff duly checks it and found all stocks and documents complete. BILLING OF TRANSPORTER:
Dispatch section receives Transformers bill, which shall be checked & matched with deliver orders receipts. After verification, bill will be forwarded to account department for processing of payment. REPORTS OF FINISHED GOODS:
All the reports are system based which are prepared on daily & monthly basis to analyze and review. (Specimen attached) Stock po posit sition re report ---
daily up updated on on sy system
Daily activity report
- - --
daily updated as per receipt & dly of m/cs
Finishe shed goods di dispat spatcch
-- -
daily update ated as per allocatio tion from rom sale ales dept.
Disp Dispat atch ches es v/s. v/s. deli delive very ry plan plan -----
week weekly ly upda update ted d for for review review of prev previo ious us week week
Month-wise & annual (cumulative) reports are also compiled on the basis of above reports for review. RECORD KEEPING:
Main areas of record keeping are as under: 70
Proper filling of sales godown copies and acknowledgment copies of delivery orders having signature and stamp of dealer forwarded kept for one year with logistics department and more than one year record kept in record room. Daily entry of delivery order (truck wise) in register for verification of bills.
(source: www.AtlasHonda.com . Procedural manual 2010-2011. ISO manual)
29. 29. Bibl Biblio iogr grap aphy hy Atlas Honda. (n.d.). Atlas (n.d.). Atlas Honda. Honda. Retrieved from Honda Pakistan: www.atlashonda.com Atlas honda managment. (2010-2011). Annual (2010-2011). Annual report. Sheikhupura. Auto Market. (n.d.). Automarket (n.d.). Automarket . Retrieved from Automarket: www.automarket.com Company Atlas honda. (2011). manual of working. sheikhupura.
Persons Inquired Mr. Sohail Qiaser (national manager logistics) Mr. Ahmed Ali (manager logistics) Mr. Sayyad Sikander Raza Zaidi (Assistant manager logistics) Mr. Faheem Dowood (executive logistics) Mr. Abdul SATTAR (system officer logistics) Mr. Muhammad Farhan Baber (executive logistics) Mr. Hussnain Nasir (system officer SAP purchase) Mr. Munir Ahmed siddiqi (Incharge camshaft manufacturing engine plant)
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C.E.O Appendixes: Appendix 1: organizational structure
Marketing
I.T
Finance
Sales
Production
Engineering
Logistics
H.R
V. P Human Resources
S. Parts
Services
Local Purchase
Industrial Relation
F. G. D
Paint I. Sales
V. I .P
Frame Assembly DD & CC
Out Source process
72 Welding
Appendix 2: quality assurance chart
73
74
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