This action might not be possible to undo. Are you sure you want to continue?
Honda Atlas Cars(Pakistan) Ltd. is a joint venture between Honda Motor Company Ltd., Japan & Atlas Group of Companies, Pakistan signed on August 5, 1993. Collaborations was done for the development of parts and systems for manufacture of Honda Cars in Pakistan. Pakistani and Japanese cultures have blended exceptionally well to form a professional team of dedicated specialists. HACPL keeping its promise to come upto the customer's expectations and to give them money's worth
Dynamic Manufacturing and marketing of prestigious products to the entire satisfaction of customers. Create ideal working environment for continuous development of product and personnel. Provide adequate return to shareholders and fulfill corporate civic and fulfill corporate civic obligations.
Honda Atlas Cars Ltd. 4 . Mosque and canteen is present in factory premises. Special coasters have been hired for travelling of employees between Lahore and factory. The buildings of HACPL are neat & beautiful and the security system is very tight. quality and working condition. "Equality" is a significant feature of HACPL. is rated very high in tons of efficiency.
Product Plans Assemble to order strategy Competitive Priorities Low cost Consistent quality On time delivery Process Design Labour + Moderate technological intensive. 5 .
Capacity Lower utilization. 6 . Production Plans For 1 month. Scheduling Planned for ahead.Material Management Formal Supplier Relations.
8 . HACPL has a network of 14 dealers.e. Out of these. Karachi and Hyderabad) fall within a radius of 400 km from the factory. 7 dealers are located within a radius of 400 km from the factory. HACPL has an edge over Indus company ( the manufacturer of Toyota) in this regard. Dealers of two cities (i.
A large number of industrial units are operating here and this along with the presence of many technical training institutions have contributed towards the provision of abundant skilled labour. 9 .
-HACPL charges Ex-factory rate for its product from customers. Honda Atlas Cars (Pakistan ) Limited. telephone. is rapidly becoming an industrial zone. tries to reduce the transportation cost through the following ways: -HACPL prefer that vendor who supplies material at the HACPL's destination (plant) while remaining in suitable price and quality ranges. 10 . etc are also easily available. Electricity. The place where factory of HACPL is located. The customers have to bear the transportation cost from plant to the respective dealer of their city.
Honda Atlas Cars (Pakistan Ltd. each one headed by a Gm. These along with some other sections are arranged in four groups. 12 . has a separate production department which is headed by Vice President (Production). The production department has a number of sections such as Vendor Section Engine Section Welding Section Maintenance Section Paint Vehicle quality control.
There may be several reasons for this under-utilization such as weak economic condition of the country. decrease in the purchasing power of potential customers. As for as the production level is concerned. This shows that the plant is being underutilized. et cetera 15 . Currently the plant has the capacity of 35 vehicles per day which is lower than that of Toyota. It was 15 cars per day at the factory. it varies from time to time.
A brief list of machinery used in HACPL is given below Boilers Compressors Water treatment plant Ovens (for backing the body of cars) Spot welding guns. Two-post lifts G-SWAT/ B-S / S Side Slip / Shower testers 16 .
Various parts of vehicles are Brakes Seats Lights Cooling System 17 .
After backing. cleaning and degreasing of frame which are followed by Phosphate and ED coating. 19 .The production procedure starts from welding. This is done with the help of special machines. following coat are applied: Base coat Final coat Clear coat (for shining) After painting. The painting section is equipped with modern machinery. Here. The procedures at assembly line can be understood by figures mentioned earlier. In this way the basic frame is manufactured and is transferred to painting section. wind shield. etc. tyres seats. the process starts with wiping. the frame is shifted to assembly line. Now the frame is backed in special ovens. Here ornamental parts such as lights are fixed followed by heavy parts like engine.
Now. the car is ready for shipment. Finally. HACPL is using three QAEs (Quality Assurance Equipment) After applying these test. After passing through assembly line. a "shower test" is applied to find leakages if any. the car is driven an a 1-km "test course". Here. the car moves to "vehicle quality department". pre delivery inspection (PDI) is made and a sticker is attached. 20 . Here the noise and performance of car an different road conditions are tested. different tests are applied. In this final stage. Currently.
HACPL is ISO 9002 certified. If any deficiency is found then it is reported. Employees are encouraged to improve quality and reduce cost.1997 & 1998. The personal of HACPL is highly qualified in this regard. HACPL is successfully using "Kaizen" system for quality control. 21 . about 20-25 prizes are given on showing good performance. Every month. thorough checking of that material is made. A lot of importance is given to " quality control" in HACPL. When purchase material arrives. the finished product is tested before delivering it to the customers in order to assure the quality standards. It was the winner of "Best Quality Award for Asia" in 1996. Similarly.
22 . This function is performed by Honda Motor Company. All major changes in models of Honda cars are introduced there. these changes are introduced in the models offered in Pakistan. where they are trained according to new conditions. there is no research and development department in HACPL. Unfortunately. Japan. Employees of HACPL are sent to Japan. The role of R&D is to introduce innovative ways to achieve the objectives especially through production facilities. Later on.
e. parts and components. the manufacturer of Toyota Cars. i. HACPL is persuing a realistic and progressive deletion programme for indigenisation of assemblies. Efforts are being made by top management to increase this percentage. HACPL is almost same as that of its major competitor. and is being supplemented by vendor development. This dynamics programme is being implemented through in-house assemblies and manufacturing operations. 23 .
HACPL is achieving production efficiency through: Evaluation & improvement of quality control. HACPL is achieving excellent quality levels through giving training to personal plus proper use of technology. which are a loss for the company. Training of production employees.The production department of HACPL is playing a vital role in achieving the overall objectives of the company through efficient utilization of resources. 24 . As mentioned earlier. Modernization of plant and machinery Similarly cost minimization objective is being achieved through: Deletion programme Avoiding poor quality products.
Inventory is a stock of any things held to meet future demand. The basic objective of any firm is to minimize total inventory cost (ordering & carrying). In HACPL. the whole inventory system is computerized. 25 . The same is the case in Honda Atlas Cars (Pakistan) Limited. Providing management reports. Automating the recording process. Re-computing decision parameters. Inventory is created when the rate of receipts exceeds the rate of disbursements. Following are the advantages of this computerized system. There are three types of inventory: Raw material inventory W. It is depleted when disbursement exceeds receipts. Updating records.I. inventory Finished goods inventory.P.
26 . they have more safety stock of imported parts as compared to that of local parts. The reason for maintaining a safety stock is as follow: To protect against shortage that occur due to suppliers. To protect smooth and continuous operations. the inventory is held in the following forms: Inventory of imported parts. Inventory of local parts. In order to avoid stock out. In HACPL.HACPL maintains a safety stock of 2 to 3 months.
27 . Both imported and local parts are stored here. Storage Of Output (Cars) There is no proper warehouse for parking of cars moving out of assembly line.Shortage Of Inputs There are special warehouse for the purpose. A place has been assigned for this purpose but there is no roof over it.
Japan in the CKD (complete Knocked Disk) form and also from the Local Vendors. negotiating contract and deciding whether to buy locally or centrally. 29 . Purchasing must satisfy the firm·s supply needs and support the firm·s production capabilities. HACPL imports materials from the parent Honda Motor Co. Purchasing in the management of the acquisition process includes deciding which supplies to use.
30 . (i.HACPL prefer those suppliers who fulfill the following requirements: Provide best quality material at low cost. Shorter Lead Times Provide material to production plant of HACPL.e. provide material at destination). On time delivery These are the reasons which forces HACPL to go for local contracting.
(Honda Civic & Honda City). To store the finished products. 31 . HACPL has a country-wise network of Sales Dealers who are actively engaged in promoting the image of HACPL and its cars. HACPL uses both FORWARD BACKWARD PLACEMENT.