SUPPLY CHAIN OF

ATLAS HONDA
 Usman Mushtaq
 CMS # 17981
Company Profile
• Joint venture of Atlas Group and Honda Motors Company Japan
• Established in the year 1987
• AHL manufactures and markets Honda motorcycles in collaboration
with Honda Motor Company.
• Revenue Rs 55.02 billion (US 540 million) 2015
• Atlas Honda has 65.7 percent share in the total sales in Pakistan
• Company has 307 dealers nationwide, who are responsible for the
sales of motorbikes
• 6400 service dealers throughout the country, who are providing
services of repairing to the customers.
• Atlas Honda is creating job opportunities for almost 25,000 people
 Vision
“To be the market leader in the motorcycle
industry, emerging as a globally competitive
center of production and exports”.
Products
• Four major products;
• CD 70, CD 100, CG 125 and CG 125 Deluxe
• Alsomanufactures various hi-tech components in-house in
collaboration with leading parts manufacturers like Showa
Atsumitech, Nippon Denso and Toyo Denso.
• Two production plant at Karachi and Sheikhupura
• Production Rate of Karachi Plant is 400 motorcycles per day
• Production Rate of Sheikhupura Plant is 1650 motorcycles per day
Competitors
• Yamaha

• Suzuki

• Pak Hero
• Hero

• Star

• Lifan

• 30+ more
• Atlas Honda has 65.7 percent share in the total sales in Pakistan
Strategic Goals
Meet Quality standards.

Continuous induction of technologies.

Customer Facilitation & Satisfaction.

 5s Strategy
 Sale, Service, Spare parts, Second hand sales, Safety
How Supply Chain works at
ATLAS HONDA?
• TheSupply Chain Management at Atlas Honda is generally
contains the following functions;
• SAP “System Application & Products"
• Production Planning
• Manufacturing

• Warehousing

• Vendors

• Transportation
SAP “System Application &
Products"
• Uses Master production scheduling (MPS)
• HelpAtlas Honda they anticipate shortage before its occur,
(current stock, purchasing order, manufacturing order & sales
order)
• MPSyou can easily see what exactly the shortage will appear if we
execute the specific production plan.
• MRP shows, which item have to purchase, in what quantity, and
when the order should be placed so that the required material will
arrive just in time
Production Planning:
• 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
• 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.
Manufacturing
• Total number of assemble 350 parts for each product
• Parts Imported parts (CD-70) 5%
• Imported parts (CD-125) 15%
• Shifts in Karachi 1 Shifts
• SKP 24 hour
Manufacturing Pr0cess
• Atlas Honda there are total fourteen processes
1. Frame Assembling 8. Fuel Cope Shop
2. Paint shop 9. Die casting Shop
3. Buffing Shop 10. Engine Assembling Shop
4. 11. Wielding Shop
Alternative Current generation Shop
5. Drum Gear Shift 12. Ignition Coil Shop
6. Drum Gear Shop 13. Switch Assembling Shop
7. Machine Shop 14. Engine Machine Assembling Shop
Warehousing
• Storesdept. at AHL has been divided into a no of small stores according to
the type of material being stored and functions/services provided by the
store
• AtlasHonda has one major warehouse which is in SKP and where they store
all the finished assembled parts
• Two sub warehouse in its Karachi plant
• CKD Store
• RM Store

• CKD (Complete Knock Down) Store are those store where they store those
part which they import from Japan and Taiwan and the capacity of this store
is approximately 2000 assembled part
• RM store are those store where they store those parts which is in the raw
form like the steel sheet for making the body tank, rear brake front, and
many other part which they take from the local supplier and convert into the
finished formed and the capacity of this store is almost same as CKD Store
Vendors/Suppliers
• Total number of suppliers 250
• At Karachi 120
• Thisdepartment 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
• Thisdepartment performs VIP (vendor improvement programe).
Under this programe, the department representatives go to the
vendors and train them for new methods to produce better quality
at reasonable price
• At present, 82 vendors are working with the company
Transportation
• Atlas
Honda limited hire local contractor for the purpose of
transporting assembled parts from Karachi to Sheikhupura
• Thereare three types of trucks that are used for that purpose, and
each of them has different capacity
• Type of trucks and there capacity:
• HINO (125 motorbikes)
• BEDFORD (110 motorbikes)
• MAZDA (65 motorbikes)
Conclusion
• Efficient
supply chain management system should be the key
concern for any manufacturing company.
• Master production scheduling (MPS) system helps them to identify
the forecasting factor of each production plan. The MPS indicates
the shortage or the excess of the finish goods.
• All
the requirement of the production department is fulfilled in no
time because they forecast the procurement plan for upcoming 3
months
Thank You