Supply chain final

Presentation

1
Atlas Honda bikes

2
 Presentation Group

Imran khan Id:4491

Sadaquat khan Id:4494

Muhmaad Idrees Id:4486

3
winning with
SCM

4
•About this
•Presentation….

5
 You’ll Hear!
Industry Analysis
Atlas Honda Pakistan
Organizational Structure
Company Supply Chain
Product Range
Procurement
SAP
Manufacturing
Warehousing
Vendors/ Dealers
Transportation
Conclusion 6
 Industry Analysis
Motorcycle Industry estimates show
that last year a total
of over 750000 motorcycles were sold
in the country
The industry has been experiencing
a healthy growth rate of around 30%
per year for the past 2007-2009

7
 Industry Analysis

Pakistan came at number seven

with a production of 750,000 units
of motorcycles constituting to 2%
of the global total.

8
Market Share of Motorbike in Pakistan

9
10
 Vision
• Market leader in the
motorcycle industry, emerging
as a globally competitive
centre of production and
exports.

11
 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,

12
 Company Strategic Goals

• Customers
• Our customer is 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.
• Quality
• To ensure that our products and services meet the set
standards of excellence.
• Local Manufacturing
• To be the industry leader in indigenization of motorcycles
parts.
13
 Company Strategic Goals
• Technology
• To develop and maintain distinct business
advantages through continuous induction of
improved hard and soft technologies.
• 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.
14
 Introduction of Atlas Group

The Atlas Group comprises of 7 public and 4

private limited companies, with over 5,000 staff
members. The foundation of the Atlas Group was
laid by Mr. Yusuf H. Shirazi, 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
R real Estate.

15
 Introduction of Atlas Group
• Shirazi Investments is now one of the leading
investment companies in Pakistan engaged in
trading shares, fund management,
underwriting, real estate and warehousing.
• The growth of the Atlas Group is the result of
its focus on good corporate governance. The
Group's equity has risen to Rs. 15 billion;
assets have exceeded Rs. 25 billion and sales
have crossed the Rs. 30 billion mark
16
 Company Profile

Atlas Honda Limited Atlas Honda Limited is

a joint venture.
Country’s largest in-house manufacturing
capability at its Karachi and Sheikhupura
plants.
14 Joint Venture/Technical Assistance
Agreements.
SKP Plant comprises of 500K plant.

17
 Company Profile
• Daily motorcycle production is 1325 units
• comprising 4 models.
• 65.7 percent share in the total sales in
Pakistan.
• turn over is less than 3 percent.
• 307 dealers nationwide.
• Technical Training Centers in Karachi and
Lahore.
18
 Atlas Honda bikes

Atlas group operates in three sectors

1-Engineering Sector

2-Trading Sector

3-Financial Sector

19
 Atlas Honda company

• Engineering Sector
• The Engineering Sector includes the following
listed companies.
•
• Atlas engineering

20
 Atlas Honda company
• 2- Trading Sector
• The Trading Sector includes the following
listed companies.

21
 Atlas Honda company
• Financial Sector
• Atlas Group has following three financial
companies
• Shirazi Capital
•

22
 Quality Policy  
 

• Commitment to provide high quality motorcycles and parts.

• Light 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

23
 Environmental Policies
Reduce and prevent the generation of waste and pollution in
our production system.

• Establish management program to promote energy conservation and reduce

waste.

• 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.

24
 Chairman

Organization Structure
chairman

CEO

Finance Marketing Supply chain R&D

HRM Quality

Procurement Production
Warehouse Control

Imports

RM SAP
25
Local
 Company supply chain
Assembly /
manufacturing
Customer Dealers plant

Central
Import Local Warehouse
5% CD-70 95% CD-70 (Sheikapura)
15% CD- 125 85% CD- 125

Part assembling
(Karachi)

Suppliers Procurement
26
Dynamics of Material Flow

wareHou Logis
supplier plant se tics
27
dealer
Dynamics of Order Flow

28
 Product Range

• CD 70
• Honda CD 70 is the No. 1 choice in motorcycles. In to its
established superiority in terms of great speed and fuel
economy, the Honda CD 70 is presented with special features.
The new attractively designed CD 70 is right there at the top,
with an aerodynamic shape, super econo-power, a smoke-free
4-Stroke engine and the special Honda 12-volt CDI technology.

29
 Product Range

• HONDA CD 100
• Quality, Performance, Speed, Economy Petrol and Re-sale
Value define Honda Motorcycles. All these have managed
to successfully bag your trust on the New Hon da CD100.
It is a stunning result of advanced Japanese technology
and right up they’re as an outstanding performer
representing all the qualities that make Honda
motorcycles so special.

30
 Product Range

• HONDA CG 125
• New Honda CG 125 is the ideal combination of elegance
and power. Its speed and performance symbolizes the
true essence of modern lifeThe 125 cc 4-stroke engin e
generates 11-Horse Power with low fuel consumption. It
is ideal for high speed,

31
 Product Range

• CG 125 DELUXE
• HONDA CG 125 DELUXE is newly launch bike of the Atlas
Honda company. It’s also a 4 stroke engine and ideal for high
speed, long run and rough pathways. It’s specially
manufactured for the young people because of its excellent
speed and this bike getting good response from the youth.

32
 PLACEMENT

• Atlas Honda gained good market share due to

its strong distribution network. For
distribution atlas Honda has divided the whole
country into two regions.
• SOUTH REGION
• NORTH REGION

33
 SOUTH REGION

• Includes following territories

• Karachi
• Karachi region covers whole Sindh province
• Quetta
• This covers whole Baluchistan province

34
 NORTH REGION

• It includes following three regions.

1. Multan
2. Lahore
3. Rawalpindi

35
SOUTH REGION

36
NORTH REGION

37
 Competition

1. Yamaha
2. Suzuki
3. Sohrab
4. Pak hero
5. Hero
6. Star
38
 SAP “System Application & Products"

• Master production scheduling (MPS)

• Material Requirement Planning (MRP)
• Procurement Process:

1. Forecasted Procurement:
2. Bill Of Material (B.O.M.)
3. Price Negotiation
4. Performa Invoice is called 
39
 Procurement Process:

5 Purchase Order is placed

6 Establish Letter of Credit (L.C.)
7 Revival and Recovery of Original Documents:
Bill of Lading
Invoice
Letter of Credit
8 Clearing Agents

40
 Production Planning

• Atlas Honda total plant

• capacity is 500,000
• units in Shaikhupura
• and 105,000 units in Karachi
• planned to produce 400,000 units
• using both push as well as pull system

41
 Production Planning
Long run capacity
planning

Aggregate
planning

Master Production
Scheduling

Production Planning
&
control system
Push System Pull System
42
• Atlas Honda total plant capacity is 500,000
units in Shaikhupura and 105,000 units in
Karachi. But Honda produces motorbikes
according to the market demand and
customer demand, because of this reason
their plant always operates under capacity.

43
• Atlas Honda planned to produce 400,000 units of
motorbike during the current fiscal year that is
2006-07. But they are expecting to achieve 350,000
units of motorbikes during the current fiscal year.
• Atlas Honda is using both push as well as pull
system. Push system is use before assembly plant.
Pull system is used after they assemble the required
units and supply their motorbikes to their dealers
so that dealer could fulfill the customer’s demand

44
 MANUFACTURING
• Overview:
Total number of assemble parts 350 parts for each product.

Imported parts (CD-70) 5%

Imported parts (CD-125) 15%

Shifts in Karachi 1for 15 hours

Shifts in SKB 24 hours

45
• CD 70:
components

Imported Locally
5% 95%

Lead time
Lead time 1Week
6Mouth

46
• CD 125:
comonents

Imported Locally
15% Procured 85%

Lead Time: Lead Time: 1

6 months week

47
Lahore Plant

48
 Manufacturing Process:

Atlas Honda there are total fourteen processes, as follows:

• Frame Assembling
Where frame of motorbikes are produce in bulk
quantity.  
• Paint shop
In paint shop nearly 110 parts of motorbikes are being
painted at present.
• Buffing
Buffing shop used to buffer 35 components of motorbike

49
 Manufacturing Process:

• Alternative Current generation

• This department works on electric works in a motorbike from engine
wiring to ignition switch and light
•  
• Drum Gear Shift
• This shop works on all work related to gear and chain
•  
• Drum Gear Shop
• This department used to work on drums on front as well as rear drum
•  
• Machine Shop
• In this department all the extra machine work is done

50
 Manufacturing Process:

• Fuel Cope
• Fuel tank and other material related to fuel e.g. filter and carburetor
are assembling here. 
• Die casting 
• In this department chrome of metal parts done
• by Honda by own. 
• Engine Assembling
• In this shop engine is assemble in proper
• form to fit into chassis or frame

Wielding
All the necessary wielding are done
here regarding frame etc 51
 Manufacturing Process:

• Ignition Coil Shop

• This shop related to work on ignition coil, which is right
beside engine to produce electric for engine and light  
• Switch Assembling
• Where switch of motorbike made and
• assemble in complete form
• Engine Machine Assembling
Here engine is attached to frame and check whether
is working fine or not

52
 Bottlenecks

In Atlas Honda supplier are considered as

bottlenecks…
Bottleneck

Certral Assembli
Part dealer
Supplie Procure ng
Assembli ware
r ment ng karachi
manufacu
s
house ing plant

53
 Warehousing STORES

• Stores dept.
•  
• AHL performs following functions:
• Manages the receiving, stacking & issuance of parts
&materials to the shop. Ensures the provision
&dispatches of required parts to SKP & KHI plant,
spares part division &vendors. Handles the rejections
&damages from all shops Handles the scraps & wastes
generated in the factory
•  
54
Ware House Atlas Honda

In this ware house its store more then 50000bilke

55
 Handling Techniques

• At AHL, following handling techniques are

used:
• For handling from shop to shop especially
designed trolleys, bins and pallets are used.
Imported motorcycle components are
received in Steel & wooden cases & pallets.
Local vendor parts are received from receiving
section in standard carton boxes.

56
 Functions:

 This department is responsible for all the

relations and dealing with
different vendors.

 This department motivates

vendors to produce excellent quality and train
them to achieve the highest level of quality

57
 Functions:
 This department performs VIP (vendor
improvement program). Under this program,
the department representatives go to the
vendors and train them for new methods to
produce better quality at reasonable price 

58
 Dealers

• 5s stands for the following five facilities 

1. Sale
2. Service
3. Spare parts
4. Special sale
5. Second hand sales

59
 Atlas Honda
• There are more then 500 dealers in all over
pakistan
• Likes
• Multan. Lahore. Karachi. quetta .and any many
other

60
 Dealers, Spare Parts & sale

• Quetta;
•  
• Name: HONDA POINT
Contact To:Mr. Khurrum
Shahzad 
• Services: 5S Dealer Contact#:081-2667925
•
• Cell#:0300-9380266 
• Address: Sitara Hotel Building,
• Liaquat Bazar, Quetta
•  

61
 Sialkot

Major Selling Cities

Atlas Honde

karachi sheikpuraS
Lahore quetta

62
Major Selling country

Atlas Honda

63
 Transportation
Type of trucks and there
Capacity: 
1. HINO (100)motorbikes to quetta  
2. BEDFORD (75motorbikes) to quetta 
3. MAZDA (65 motorbikes) to quetta

64
 Transportation

Charges of Transportation

BY HINO :- its charge 100000

 

By MAZDA Track:-its take RS 75000

 
 

65
 Transportation

BEDFORD Trcuk:-
Its contain 110 motor cycle and
Charge par bike 80000Rs….
it is little lower
Mode of transportation…………..
 

66
 Transportation

• By Train:-
• Atlas Honda company does
not use the Train
transportation to send bike
to any city of Pakistan..becoz its
take lot of time to deliver the
bike on minimum time………..

67
 AHL -- BUILDING A BETTER WORLD

 Service training to VTI student

 
• Atlas is engaged in providing technical training
to student of vocational training institute. At
our service centre, different experts gave
briefing and practical training to a batch of 15
students. The training is of 30 days and
comprised by all service technicalities. Training
certificates were also given to these students.
68
 CONCLUSION

• …. “Right time delivery

to the right
• customers.”

69
70
71
Call us 03458328363 if any question

72
 73

Thanks…