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ORGANIZATION VISITED:

ATLAS HONDA

Submitted By
Rameez Farooq-30606
Hira Zaheer-30605
Danish Aziz-30604
Ghulam Mustafa-30607
Hafiz Saroosh

Submitted To
Mr. Syed Shahnawaz Ali

Course
BUSINESS PROCESS REENGINEERING-BPR

Submitted Date
10-05-2015
Company Profile:

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 Showa Atsumitech, Nippon Denso and Toyo Denso. Honda motorcycles are by far the
largest selling motorcycles in the country with an unmatched reputation for high quality, reliability and
after-sales-service.

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 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. AHL is playing a pioneering role in creating conditions
for easy and confident use of motorcycles all over the country. A vast and growing network of over 1600
sales service and spare parts dealers has been established.
Product Range:

The product category at Atlas Honda has been designed by looking at the different desire product by the
customer. The product range has been developed to fulfill the different customer’s requirement and their
preferences. The product line consists of;

1- CD-70

2- CD-100

3- CG-125

4- CG-125 Deluxe

5- Honda CBR 150

6- Honda CBR 500

Strategic Goals:

The strategic goals at ATLAS HONDA comprises of the following factors;

Customers:
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.

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.

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.

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 potential in goal directed team
efforts and compensate them attractively according to their abilities and performance.

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.

Supply Chain Operations:

Atlas Honda believes that local manufacturing bodies and capabilities should meet to its highest level of
its production. The company manufacturing line comprises of different product range at the same time.
And vendor industries had created to penetrate and experienced the role of localization. Atlas Honda
production facility comprises of one of the largest manufacturing capability located at Karachi and
Sheikhupura. Atlas Honda supply chain spans all movement and storage of raw materials, work in process
inventory and finished goods from point of origin to point of consumption (supplier to customer).

The concept behind the Atlas Honda supply chain is that the simpler model of procurement to logistics
network should be developed and to declare of doing operations and vendor information’s so the
coordination between business partners distributed the risk and facilitates with the production scheduling
and forecasting. Atlas Honda lets capable of making it aware through monthly vendors report and this
helps in letting know about what your supplier ad your supplier’s supplier will do for you.

Framework at SUPPLY CHAIN DEPT.

The framework at Atlas Honda consists of following steps.


 Vendor procurement
 Logistics (Inbound/Internal/Outbound)
 Local purchase
 New sourcing

SAP:

My SAP ERP is the package of SIEMENS implemented in Atlas Honda. SAP like Any ERP system
typically has a modular hardware and software units and services that communicate on LAN.

MPS helps Honda Atlas to overcome the Shortage issues before it occurs.(Sales Order, Current stock,
purchasing order and manufacturing order) these indicators helps Atlas Honda to monitor its inventory
and let them aware with the status of current on hand inventory and also it highlight if shortage going to
be occur so it indicated a week to months before. So accordingly the production schedule will be initiated
to overcome that shortage.

MRP is the intermediary tools in between the MPS and purchasing order and manufacturing order which
indicates about that what have to be purchased and in what quantity and when order should be placed so
its arrive just in time.

Sales & Distribution (S&D):

AHL MARKETING PHILOSPHY

“To create value for customers by delivering them valuable products and services by identifying
their needs through market research and continuously up grading the standards of services
keeping in view the govt. and the societal laws and regulations”

Marketing Department

Marketing department activities process into six sub department;

1-Sales Department
2- Dealer Development Department
3- Institutions Department
4-Spare Parts Department
5- Customer Care and Training
6-Service Department

Sales Department
There are five following procedures that completes the ‘Sale Process’

1) Booking
2) Delivery
3) Pending
4) Retail Stock
5) Retail Sale
Booking:

A procedure in which an authorized sales dealer makes an order slip along with Demand Draft
(D.D)/Collection Slip (to the name of Atlas Honda Limited.) and send to the respective regional office.
Then office entered the booking of that specific dealer.

Booking Documents:

 Order Slip (containing motorcycle quantity, model, color, unit price & total amount) (Doc. No.
MKT-OS-01.1&2)
 Bank Demand Draft/Collection Slip (to the name of Atlas Honda Limited.) (Doc No. MKT-OS-
01.2)
Booking Process:

This process starts by receiving dealer’s order slip at respective regional office. After receiving, orders are
delivered to SAP for entering the booking of dealers. When the orders of all the regions are entered by
SAP, then ‘Daily Sheet’ is generated. (Which shows booking, delivery and pending Model wise and sales
group wise)? (Doc. No MKT-OS-01.4)

Allocation of Bikes:

A procedure in which an authorized person (Territory Incharge) makes allocation of the available
motorcycles stock to the specific dealer by keeping in view of his available pending, market demand,
dealers’ stock and his overall 5S performance. Then motorcycles physically delivered at the doorstep of
the specific dealership from Sheikhupura plant & Karachi plant. (Doc. No. MKT-OS-01.8)
Allocation Process:

This process starts by receiving Motorcycle Stock Report (Doc. No. MKT-OS-01.5) from Sheikhupura
plant & Karachi plant on daily basis. After receiving stock report, NSM distribute the available stock to
Regional Managers of six regions (Lahore, Faisalabad, Rawalpindi, Multan, Central & South) according
to demand & pending of these regions.

Then RSM’s distribute the stock territory-wise (Doc. No. MKT-OS-01.6) and at the end Territory
Incharges distribute the allocated stock to the sales dealers according to area demand & dealers’ pending
level.

Available stock is entered into excel sheets (Doc. No. MKT-OS-01.7) by Territory Incharges and deliver
to SAP for entering these allocations into its system dealer wise & then report to Logistic Department for
delivery. (Doc. No. MKT-OS-01.8)

Logistic Dept. makes arrangements for the delivery of motorcycles by using special trucks. The delivery
person has D.O (Delivery Order) with copies and takes the receiving on D.O from Sales Dealers by
delivering motorcycles to the dealers. (Doc. No. MKT-OS-01.9).

Allocation in SAP system


Retail Stock:

The physical stock of available motorcycles for sale at the specific dealership is called Retail Stock.

Retail Sales:

The no. of motorcycles sold by sales dealer to the customers

Dealer’s Investment:

Model wise investment level is set with the dealer at the time of appointment and time to time review
according to area demand and sale of the dealer. The addition of Dealer’s retail stock; dealer’s stock in
transit, dealer’s order in transit and dealer’s pending is called Dealer’s Investment.

Sales Dealer:

An authorized person that is appointed by Atlas Honda Limited. in a specific area/city to sell its products
to the customers.

There are three kinds of Sales Dealers of AHL.


1) 1-S Dealer
2) 3-S Dealer
3) 5-S Dealer
4) Remote 5S Dealer
5) Smart Point of Sale
1-S Dealer:

A dealer that provides 1-S facility (Motor Cycle Sales only) to its customers is called 1-S Dealer.

3-S Dealer:

A dealer that provides 3-S facilities (Sales, Spare Parts & Service) to its customers is called 3-S Dealer.

5-S Dealer:

A dealer that provides 5-S facilities (Sales, Spare Parts, Service, Second Hand exchange & Special Sales
(Credit Sales)) to its customers.
Sales Department process flow

Booking Delivery Procedure


1-Deposit Slip

2-Demad Draft

AHL Dealer (BOOKING MODEL Wise)

Regional Office

1-Clearance against
11receipts SAP

2-Record Keeping Data Entry of Orders

*Subject to Bikes
Availability delivered
of stock & Accounts Department
through
as per trucks by
pending Logistics
Sales Department Deptt. to
AHL
*Allocation of bikes through SKP & KHI
Dealers
Quota assigned

SAP

Data Entry of allocation & DO generation

Logistics Department

Route allocation

Loading of bikes

And deliver to dealers


Sales Department:
Sales departments all work is done in SAP system due to which all the record is saved in SAP system
which is still remain saved in SAP system remaining hard copies and any other document related to sales
deptt. is discarded after 3 months.

Dealer’s Development Department:


Dealership approval forms are the main record that comes to dealer development department, that forms
are remain saved in particular department all other documents are discarded after 1 years.

Institution’s Department:
Institutional departments all work is done in SAP system due to which all the record is saved in SAP
system which is still remain saved in SAP system remaining hard copies and any other document related
to institutions dept. is discarded after 3months.

Spare parts Department:


Spare parts departments all work is done in SAP system due to which all the record is saved in SAP
system which is still remain saved in SAP system remaining hard copies and any other document related
to institutions deptt. is discarded after 3months.

Customer care & training Department:


The entire customer complaints are stored in system which is still remaining in the systems and complaint
letter that are received are discarded after 3months. Training presentations are also saved in the systems
and other documents are discarded after 3months. The record of trained persons is remain stored in the
system.

Service Department:
Service departments all the record is web based which is still remain saved in web no damage can be done
to record or discarded and other documents in hard copies are discarded after 3months.
Booking Order FORM:
Booking in SAP System

Functionality:

01: Create (to create booking receive from any dealer with product code and quotations)
02: Change (changes made according to the dealers’ requirement.
03: Display (After all display screen will appear which tell the exactly made entry).
Production Planning (PP):

Production planning at Atlas HONDA named as the Production planning & controlling. The process flow
at this stage involves the following procedure;

1
• Agreegate Production Planning

2
• Master Production Schedule

3
• Material Resource Planning

4
• Work Order Insurance

AGREEGATE PRODUCTION PLANNING:

On the basis of forecasting, a schedule from SAP, according to the production capacities & company’s
strategies, is generated which includes the planning of whole year. It includes the production breakup of
motorcycles for whole year into model wise, plant wise and month wise breakups.

MASTER PRODUCTION SCHEDULE:

In Atlas Honda production schedule represent quantities of individual products considering demand for
cast current inventory and back log. On the basis of aggregate planning, such a monthly schedule is made
which include day wise (2-shift) model & color wise breakups.
CIM Implementation:

In Atlas Honda, CIM is implemented too much extent & according to the needs of the organization.
Honda has integrated data and process from major areas of an organization and unified it for easy access
and work flow using ERP software. Integration has been accomplished by creating one single database
that employs multiple software modules.

Manufacturing Process:
In Atlas Honda there are total fourteen processes, as follows: 1. Frame Assembling30 Where frame of
motorbikes are produce in bulk quantity. 2. Paint shop In paint shop nearly 110 parts of motorbikes are
being painted at present. 3. Buffing shop used to buffer 35 components of motorbike 4. Alternative
Current generation this department works on electric works in a motorbike from engine wiring to ignition
switch and light 5. Drum Gear Shift This shop works on all work related to gear and chain 6. Drum Gear
Shop This department used to work on drums on front as well as rear drum 7. Machine Shop in this
department all the extra machine work is done 31 8. Fuel Cope Fuel tank and other material related to fuel
e.g. filter and carburetor are assembling here. 9. Die casting in this department chrome of metal parts
done by Honda by own. 10. Engine assembling in this shop engine is assembling in proper form to fit into
chassis or frame 11. Wielding All the necessary wielding are done here regarding frame etc. 12. Ignition
Coil Shop this shop related to work on ignition coil, which is right beside engine to produce electric for
engine and light13. Switch Assembling Where switch of motorbike made and assemble in complete form
32 14. Engine Machine Assembling Here engine is attached to frame and check whether is working fine
or not. Bottlenecks: In Atlas Honda supplier are considered as bottlenecks, because of their power
and they create bottlenecks by doing following things: Shortages
delays Poor quality upholding stocks. Bottleneck Part Assembling/ Procurement Assembling Central
Manufacturing Dealers Supplier (Karachi) Warehouse g Plant (Sheikhupura).
Procurement:

Procurement is the acquisition of goods, services or work from an outside external source. It is favorable
that goods, services or works are appropriate and that they are procured at the best possible price to meet
the need of the purchase in terms of quality and quantity, time and location.

Procurement Cycle:

The procurement process of Atlas Honda includes;

 Forecasting:
Forecasting had been done through market oriented drive as per the customer and dealer
requirements to fulfill the maximum utilization of the production and facilitating the customer.
The forecasting period comprises of the 3 yearly, quarterly and monthly. It is also been care off
about the model and colour preferences while forecasting demand.
Material Management:

Motorcycle Stock Report

Main EASY ACCESS:

FI (Financial SAP Window)

The SAP financial module has the capability of meeting all the accounting and financial needs of an
organization which are required for the accounting and financial based entries as well able to control, plan
and perform budgeting for the ATLAS HONDA. It contains tabs for performing activity based costing,
yearend closings, master data and postings.
Due to internal policy they let us not access the further ahead in the FI module. And as well on the
controlling due to reasons they don’t allow to take snap as we want to take.

CONSLUSION:

Atlas Honda has a strong and well organized CIM & SAP module performing operation at excellence.
They are striving for the best manufacturing facility over the production line to initiate the best result
manufacturing and facilitating dealers, customers and consumers.

RECOMMENDATION:

ATLAS HONDA should also have to build a backup solution system to facilitate in condition of tripping
or switch fails of LAN network so their CIM objective would not be affected so they can switch
themselves to other LAN easily in 10 mins and resume their operations.