Professional Documents
Culture Documents
Group Member:
Junaid Akhtar 0936115
Jay Kumar 0936113
Farhan Khan 0936
Mujahid Hussain 0936123
1
ACKNOWLEDGEMENT
First of all, we would like to express our deep gratitude to Almighty Allah,
who enabled us to undertake such an important task and to study about Pak
Suzuki and the Strategies to operate in Pakistan Marketing.
We also wish to acknowledge the valuable guidance provided by our respected
teacher Mr. Syed Nawab. He always motivated and encouraged us in the
completion of this report.
We are thankful to Mr. Abdul Aziz who is the Production Manager in Pak
Suzuki in Head Office Karachi and entire Pak Suzuki Management. They
appreciated the efforts of SZABIST. They have provided all the relevant data as
well as other information relating to the important independent variables.
2
CHAIRMANS REVIEW
In Year 2009 the demand for automobile was sluggish .The industry for
cars and light commercial vehicles experienced 29% decline in the sales volume.
The industry sold 107,768 units during the year against 151,517 units last year.
It’s my pleasure to present review on the performance of the company for the
year December 31, 2009
The demand has depressed during the year due to cost push inflation
resulting from depreciation of Pak rupee, limited financing by banks/leasing
companies and general economics recession.
First half of the year was the worst. Sales volume during this period has
dropped by 53% compared to last period of last year. Second half was some what
better than first half year. As it was grew by 33% over the first half year.
The market size of motorcycle has marginal improved by 2% over the last
year in the organized sector. During the year 593,479 units were sold against
580,604 units last year. During the first half year Demand was 25% lower than
same period of last year. However this loss of demand was offset by the increased
demand latter half year.
3
EXECUTIVE SUMMARY
MARKETING & EXPORTS
Suzuki product remain popular .Despite sluggish market demand for
automobile, Pak Suzuki remain market leader with 48% market share.
The company launched new 1300cc car (SWIFT) in January 2010.
This has been well accepted by the customers. Imported used cars do not
really pose any threats to Suzuki products. Availability of spare parts at economics
prices and reliable after sales service are the strength of Suzuki products. The
export of Suzuki Ravi pickup to Bangladesh and exports of sheet metal parts
of Suzuki Cultus to Europe going well. During the year Three hundred and
sixty units of Suzuki Ravi pick up and parts worth Rs. 120 million and Rs. 22
million respectively were exported.
LOCALIZATION
The company continues to pursue localization in order to reduce the cost of
product and keep the prices competitive besides saving foreign exchange.
HUMAN RESOURCE
Management and employee relations continued to cordial and industrial
peace prevail during the year. A new charter of demand was negotiated in a
congenial atmosphere and agreement was entered into for the period of ten years.
Human Resource development remains one of the key objectives of the company.
Company spent Rs. 12.5 million on the foreign and local training of its
employees. ECONOMIC CONTRIBUTION
The company has distinctive position in an automobile industry as leading
contributor to the public exchequer. The duties and tax paid and the foreign
exchange saved by company its last six years of operations as follows:
4
160000
140000
120000
100000
80000
export sales
60000
40000
20000
0
1stQtr 2006 2007 2008 2009
Duties and taxes paid by the company during the year represent 0.6%of the
total tax estimate forecast in the Federal budget for the fiscal year 2009-2010.
Company contribution has reduced 1.06% in the last year because of lower sales
volume.
SUMMARY CONCLUSION
The management is optimistic that economic indicator is improving. How ever it
feels that difficult business environment are likely to continue for some time and
profitability will remain under pressure.
5
Table of Contents
S. NO Title Page No
I. Introduction 01
V. PEST Analysis 21
X Environmental Policy 33
XI Bibliography 35
6
Introduction
Pak Suzuki Motors Ltd. is a company assembling and distributing Suzuki
Japan's cars in Pakistan. Currently they are one of the most successful motor
companies in Pakistan.
The firm was founded in 1983 as a joint venture between PAK and Suzuki,
formalizing the arrangement by which Awami Auto Ltd. had produced the Suzuki
SS80 from 1982. Suzuki originally owned 25% of the stock, and has gradually
increased their holding; they now own 73.09%. The company now assembles a
wide range of Suzuki vehicles and aims to produce 150,000 vehicles per year.
(2005 production was 100,000)
Our Vision
To be Excellent All Around
Our Mission
To provide automobile of international quality at competitive price.
These are Mission and Vision Statement of Pak Suzuki, and they always try to
improve skills of employees by imparting training and inculcating in them a sense
of participation.
• To achieve maximum indigenization and promote the automobile vending
industry.
To contribute to Pakistani society through development of industry in
general and automobile industry in particular.
7
Statement of Ethics and Business Practices
Here are the code of ethics and Business Practice of Pak Suzuki Motors,
1. Pak Suzuki insists on integrity and honesty of its employees in doing
b usiness. Any unfair or corrupt practices to solicit business is
fundamentally inconsistent with business codes of company
2. Pak Suzuki believes in compliance to regulatory obligation
3. Pak Suzuki believes in free and fair business practices and open
competitive markets. Developing any association with competitors to
distort the pricing and supply of products is contradictory to company’s
business code of conduct.
4. Pak Suzuki believes in transparency in business transaction and they are to
be recorded accurately and fairly in books of accounts in accordance with
standard procedure.
5. Pak Suzuki expects its employees to act in company’s best interest while
holding confidential information. Company expects its employees neither
to solicit internal information from other nor to disclose company’s data or
any other material information to any un- authorized person/body.
6. Pak Suzuki believes in individual’s respects and growth. Its employment
policies do not discriminate on basis of race, religion, gender or any other
factor.
7. Pak Suzuki does not believe in political affiliation.
8
Corporate Strategy
Pak Suzuki is built on the idea of a responsible corporate citizenship thereby
managing environmental, safety & occupational health matters as an integral part
of our business. In fulfilling this responsibility Pak Suzuki adheres to the
following principles:
With the globalization of markets, greater foreign competition, and the reduction
of entry barriers, it becomes all the more important to benchmark a company’s
financial indicators on a worldwide basis. World stock markets have recently
witnessed a return to fundamental financial analysis. Sound management as
opposed to hype will in the long run generate shareholder value.
9
Situation Analysis
In order to plan in a better way we have to perform situation analysis
General Environment
Product Market
Customer Market
General Environment
10
Product Market
Sale Volume and Trend
Growth Rate
Sale Volume
Pakistan's car sales have shown signs of improvement in the early months
of 2010, largely thanks to price reductions on the part of carmakers. Car sales of
10,372 units were up by 28% month-on-month (m-o-m) in October and were 8%
higher than in October 2008.
Although this may appear to be a welcome sign of recovery after a 50%
decline in car sales in FY09 (ending June 2009), the Pakistan Automotive
Manufacturers Association (PAMA) has partly attributed the growth to a rush by
consumers to buy before prices were increased again at the end of October.
Several carmakers have raised prices to counter the effects of exchange-rate
fluctuations, which have been adversely affecting margins. Pak Suzuki Motor
Company, has once again showed great performance in the automobile sector and
has maintained the sales record of the past. It has maintained 48 percent market
share of the industry.
This has been informed in a recent convention that Pak Suzuki is not only
the top manufacturer of car industry but also tops the list in sales of the car
industry. As show in the graphs
11
140000
120000
100000
80000
60000
40000
20000
0
sales volume motor car
2006 2007 2008 2009
140000
120000
100000
80000
Production volume
60000 motor cars
40000
20000
0
2006 2007 2008 2009
12
Growth Rate
On February 2009 Pak Suzuki has 48% market share. The sales growth
covered all car segments, but the global trend for a shift to small cars was bucked
as the highest m-o-m growth came in the 1300-1600cc segment, where sales rose
by 31%. The 850cc and 1000- 1300cc segments both recorded growth of 25%. For
the first four months of FY10 combined (July to October), sales rose 21% to
34,553 units. However, with October's price hikes likely to affect sales in the
coming months, BMI is forecasting car sales growth of around 5%. While we
expect some correction in the market from a particularly low base in the last
financial year, higher prices will drag on the market's potential growth.
Indus Motor took advantage of growth in the higher engine capacity
passenger car segment, with sales of the Toyota Corolla contributing to growth
of 25% y-o-y in October and growth of 77% for the first four months of the financial
year. This took the company's market share to 42% from 28% in the same period
of the previous financial year. Pak Suzuki's market share for the four months fell
13
to 45% as its sales for the period were down 2% y-o-y, despite a 23% increase m-
o-m in October and 2% y-o-y increase for the month.
14
transmission and 1600cc automatic transmission
takes you out of ordinary and into the realm. Liana
is entirely different car, its style, dimension and
comfort will inspire you to see everyday as an open
door to a new age.
Colors: Pearl Red, Graphite Grey, Solid white,
Indigo, Silky Silver, Aqua Blue, Eminent Blue
CULTUS (1000cc)
Price: Rs. 897,000/-
Cultus is the blend of space and craft.
Its trim body Conceals ample space &
flexblity for both passenger and
storage. Cultus ensures everyone,
exceptional Value and quality.
Colors: Pearl Red, Graphite Grey, Solid white,
Indigo, Silky Silver, Aqua Blue, Eminent Blue
ALTO (1000cc)
Price: Rs. 662,000/-
Alto has a bright, roomy and comfortable
cabin which keeps body relax and strong
and lighter body shell resulting in smooth
drive due to reduction of unpleasant noise
harshness and vibration. Its small turning
15
radius and compact body make parking a breeze.
Colors: Olive Green, Pearl Red, Graphite Grey,
MEHRAN
Price: Rs. 514,000/-
Unrivalled in its class, Mehran is Pakistan’s largest
selling car. More smart features like head turning
lamp, matching front grill and a two spoke steering
wheel gives it the tidy look. Functional economy,
peak performance or unmatched fuel efficiency,
Mehran VXR is the leader.
Colors: Pearl Red, Graphite Grey, Solid white, Silky Silver, Eminent Blue
APV
Price: Rs. 1,775,000/-
JIMNY
Price: Rs. 1,850,000/-
16
Colors: Solid white, Silky Silver
BOLAN VAN
Price: Rs. 609,000/-
RAVI PICKUP
Price: Rs. 489,000/-
17
Customer Market:
Customer market and customer buying behavior can be categories:
Demographic Factor
Life Style
Demographic Factor:
Target market of Pak Suzuki according to Age, Gender and Income:
Age 20 year to upwards
Gender Male and Female
Income starting from Rs.20000
Life Style:
Customer Life style of Pak Suzuki in terms of AIO can be described as
Activities Early Professional, Executives, House Hold, and
Business Purpose
Interest Personal Use, Luxury
Opinion Sensitive, Conscious, Responsible and Social
18
Customers who use such vehicle are sensitive, conscious and responsible people.
They tried their level best to save time as much as possible so they want
SWOT ANALYSIS
Strength:
1) Highest Market Share
2) Low Price Vehicles
3) Resale of Local Assembled Cars
4) Large Distribution Channels
Weakness:
1) Scarcity of raw material
2) Bargaining power of supplier is low
3) Lack of coordination and linkage with Government/semi
government supporting bodies
4) Less Technical Training Institute
5) Less distribution channels in sub urban
Opportunities:
19
1) Increasing Demand for Cars
2) Efficient Efi engine
3) Large Market size to operate
4) Global spare part market
Threats:
1) Local Competitors like Toyota, and Honda
2) Foreign Investment and setup production facilities
4) Inflation rate
5) Heavy Taxes
20
PEST Analysis
Political Environment
Pakistan has to face lots of ups and down since its independence. So many
governments have been broken down by military authority and most of the
time marsh law applied on Pakistan. In this scenario no entrepreneur was
willing to invest in Pakistan except few. Due to this market environment
wasn’t so good in Pakistan. Anyhow Pakistani government never been
trustworthy for any investor.
Legal Environment
As all countries, Pakistan also has some legislation about each sector. But like
developing countries it is hardly being imposed by authorities. Only due to
corruption government encourage smuggling and black marketing. When
anyone supported by government or give more commission to Govt. get inside
in the market and they have very soft behavior by government for any legal
Economic Environment
Pakistan, an impoverished and underdeveloped country, has suffered from
decades of internal political disputes and external ongoing conflict with India.
21
However, IMF approved the government policies, encourages by different
foreign assistance and renewed access to global market since 2001.
By following these policies government succeed to reverse the situation of
Socio-Culture Environment
Pakistan has strong culture background and it has been follow in some
particular region of Pakistan strictly. But with the passage of time it is going to
change. Thoughts of people, choices, taste and style has been totally changed.
If we talk about the transportation source in Pakistan, People use buses,
pickups etc for journey. They also have their own as well e.g. cycle, bikes etc
and lots of people are pedestrian. But now the people who haven’t any source
of transportation they also want something for their convenience because they
wants to save their time as much as they can. People want to use such vehicle
which looks beautiful and also affordable.
Technological Environment
Technological factor also very important and we haven’t control on it.
Technology is grooming with the passage of time. People also want that the
product that they have is full of technology. We never control on technology
for example you launched the product last year and your sale volume on that
time is very high but after sometime due to latest invention a lots of substitute
exist in market which affect on your business so you can’t hold on it.
22
Consumer Research and Marketing
Mix Consumer Research
Perception of people about Suzuki Products:
People think the product should have excellent fuel consumption and
a good resale value.
Brand Loyalty.
People want such vehicle which doesn’t effect on their prestige and also
within the range of them.
So after this research we come to know that Suzuki is best choice for the customer.
It is safer on the road less fuel consumption and Environment friendly product.
Because of these features it is also economical.
Marketing Mix
Promotion
For Promotion of Pakistan Suzuki automobiles, we will use different media T.V,
Radio, Test Drive, Sponsorship, News paper etc. We will aware our target
audience through above sources.
23
Placement
The distribution channels of Pak Suzuki shown in the
following Diagram.
24
Market Analysis
Porter’s 5 Force
The strategic business manager seeking to develop an edge over rival firms can
use this model to better understand the industry context in which the firm
operates. Here are the Porter’s 5 forces.
1. Potential new entrants
2. Bargaining power of buyers
3. Bargaining power of suppliers.
4. Threat of substitutes
5. Industry Competition/rivalry between competitors.
25
• Since competition is so strong between auto makers and
dealers, consumers will often do research on a vehicle before
making a purchase.
4. Threat of substitutes
26
Consumer preference is
changing (Mini cars are being replaced by compact or
midsized cars)
• Setting up integrated
manufacturing facilities may require higher capital
investments than establishing assembly facilities
Pakistan passenger
car market is moving towards cars of higher capacity.
• The typical
consumer, when searching for a particular vehicle is
bombarded by choices.
27
Business Strategies
Business strategies planning are to be conducted in order to know about their
various businesses how each business performing. With the help these strategies
we come know which business require investment and in the similar manner
which require promotional activities. We can use the same promotional activities
and with the help of synergy, their different department (R&D, Marketing, Sales
etc) can be shared in different business. By utilizing the synergy efficiently we
can reduce cost of product. And this strategy will help manager to identify that
which SBU is falls in which categories, for that there is an analysis know as BCG
Matrix Analysis which gives the detail information to the managers to carry which
SBU, and how many resources should a company allocate to which Unit.
In Pak Suzuki the main SBUs are
1) Swift
2) Liana
3) Cultus
4) Alto
5) Mehran
6) Ravi
7) Bolan
8) Jimny
28
After analysis from different data we came across the BCG analysis and draw the
following conclusion
BCG Matrix
29
Star Question Mark
High
Jimny
Swif
Bola t
n
Market
Growth
Low
High
Market
Share
30
Swift Jimny
Bolan
Mehran
Alto Cultus Ravi
Liana
APV
SBUs Analysis
Mehran:
Mehran has the highest growth rate in automobile sector in Pakistan. Pak
Suzuki always changes the different parts of Mehran either exterior or
interior whenever it comes to its maturity level
Mehran attracts the people who have a salary package between 20,000 to 30,000
per month. The youngsters also prefer the Mehran because of its size and
economical price. Small business people also prefer Mehran because of its low
maintenance cost. Mehran also attracts people who move from bike to the cars.
Liana:
Liana is a luxurious and highest price car of Pak Suzuki. It was made to
compete Pak Suzuki biggest competitors like Toyota and Honda. Liana has the
31
same features which are available in Corolla and Civic but still it couldn’t make
its market as compare to both these cars. Liana has replaced the Pak Suzuki’s
Baleno in 2005-06, since Pak Suzuki tried several ways to establish its position
but failed to do so.
It was made for a people of high income group but due to high prices in which the
market was already giving names like corolla and civic who has their strong brand
name and customer loyalty, liana was failed to capture the market.
Swift:
Due to failure of Liana Pak Suzuki introduced another 1300cc car in Jan
2009. Swift has all the latest features like power steering, central locking, Auto
Transmission and the ABS. All the 1300cc cars in Pakistan have price range
of 1300000 to 1400000, while Swift was introduced at 999000 and recently it was
increased at 1049000. It has still advantage of price competition as compare to
other 1300cc cars in Pakistan.
Ravi:
Ravi is for the people doing small business especially cargo services
like home delivery services, TCS and market delivery. All people doing
business of these types are loyal customers to Ravi. Although the
competitor launched the Shehzore which has captured the some market
share of Ravi
but although its sell did not decline too much.
32
PRODUCTION & SALE OF SOME VEHICLE FROM 2005-2009
Product Expansion
Pak Suzuki also deals in motorcycle and also in Marine equipment, and
they have a variety of Product line expansion in Motor bikes is also one of the
largest customers size to operate and has a high market size to fulfill the needs
of the customers.
It also operates in the spare parts of the vehicles and Motor bikes. So they
are also operate in vertical integrated, and sometimes the company made different
venture to fulfill the needs of its customer, such as it has joint venture with
General tier for it products.
In Marine segment, the Company is manufacturing the Equipments for ships, it is
also one of the largest area to operate, so here the Pak Suzuki plays the role
of Business ventures and the transaction at this level is B2B Transaction.
33
Environmental Policy
As a general manufacturer of automobiles, motorcycles, outboard motors, etc.,
Suzuki addresses environmental conservation at all stages in its operations from
development to disposal. In product development, we make every effort to
improve fuel economy, reduce exhaust emissions and noise, and develop clean
energy vehicles, etc. In manufacturing, we address issues such as reducing
environmental risk, reducing energy, and promoting the use of alternative energy.
In distribution, we focus on improving transportation efficiency and energy
reduction, promoting the three Rs and the use of low emission transport. In
marketing, we address issues related to promoting environmental management at
our dealers and proper disposal of end-of-life products, etc.
In addition to activities related to production, we also promote energy reduction
and green purchasing in our offices, provide our employees with environmental
education, promote environmental management at our dealers, and provide social
action programs in local communities.
34
Future Outlook of the Company:
In Future company is going to offer a new activity for it’s potential and
Targeted customers
Suzuki Insurance Arrangement Program
It is a complete peace of mind solution to all your Auto Insurance needs
exclusively available at Pak Suzuki authorized dealerships. This is a
Customer focused Auto Insurance Program with the following distinct
features:
a) Best premium rates
b) Online/Instant policy issuance (Walk in – Drive out Insured)
c) Exclusively Repairs at Pak Suzuki Authorized Dealer workshops only
d) Quality Repairs Using Suzuki Genuine parts with 6 Months Warranty
on parts
e) Largest Country Wide Dealer Network Support
f) Call Center facility
g) Fastest claim settlement time.
35
Bibliography
http://www.paksuzuki.com.pk
http://en.wikipedia.org/wiki/Pak_Suzuki_Motor
News Papers,
Business Review magazines
WELDING SHOP
During the welding process sparks and bits of slag can scatter up to 40 feet from the area
of welding. This can cause damage to people and create a fire hazard. In your welding
shop you build a metal table to do your welding on and stay away from wood or other
materials that can catch fire. The welding shop should be in an area that is well
ventilated. Welding can generate dangerous gases that need to be removed from the room
and smoke as well. Also, bright overhead light needs to be set up and aimed over your
welding table. If your auto shop has an extra room with cinder block walls and a concrete
floor, you are in luck. This will make an ideal place for your welding shop. You want to
avoid any surface that can be damaged or set on fire by sparks and hot slag.
Once you have your room set up correctly, various power tools will be needed as well as
your welding accessories. Power tools such as a reciprocating saw, angle grinder,
portable band saw, and a chop saw will come in handy during your welding projects. An
angle grinder is ideal for removing excess slag and cleaning up rough edges on metal.
Specific tools for working on metal will be needed as well. These include metal brakes
and metal benders that are available for all sizes of metal. Other suggested tools are
magnetic clamp, center punch, metal file, C-clamp, corner clamp, cold chisel, ball peen
hammer and a hacksaw. This not a complete list but is generally a good place to start.
The list of tools you can use in welding is almost endless and you will constantly
discover new tools that you will need as you become more advanced in the art
of welding.
Setting up a welding shop is really about common sense more than technical know how.
Neophytes to welding are quick to forget about the extreme temperatures needed in the
welding process and therefore do not realize the fire hazard of a welding area. If you are
more experienced, it is fairly obvious that carpet in your welding shop is not a good idea.
A good welding shop not only protects the welder and aids in good welding but it
protects the other people in your auto shop by not exposing them to hot sparks and
blinding light.
Jason has been in the construction equipment and industrial sales business for over 10
years. He owns and operates Red Hill Supply to better serve the automotive and
36
industrial industries
Press shop
The machines and systems in a press shop have to withstand a lot. No wonder then that
production equipment has to be both of the highest quality and suitable for harsh
environments. After all, environmental conditions also place demanding requirements on
the components used.
Built for these kinds of applications: the control circuit device range RMQ Titan®. The
particularly high degree of protection on the operator side ensures optimum safety – the
LED technology for indication and the spring-loaded termination ensure a high level of
device safety that is not even impaired by severe vibrations.
A further bonus: individually tailored customised inscriptions. A laser is used to provide
customised inscriptions on the operating elements that are both durable and wipeproof.
Safety is the primary concern in the press shop. Our control relay easySafety supports the
implementation of applications which comply with the highest safety demands compliant
to international safety standards. Equipped with a host of conventional safety relays,
easySafety also incorporates standard functions into just one device.
Thus, the safety control relay features the safety configuration which incorporates the
safety circuit diagram, in addition to the standard circuit diagram.
PAINT SHOP
Many people like to own a vehicle for the ease it provides in getting around and there are
many cars, trucks and other vehicles on the road. Maintenance of these is important and
keeping the paintwork of your vehicle looking good can have a number of advantages.
If the paintwork on your vehicle needs some attention then an auto paint shop is one of the
best places to get the work done.
There are a couple of main reasons why people get their car painted. On older cars the
paintwork can become a little tired, lackluster and damaged. If the car still runs well then
a new paint job can improve the appearance and keep it looking good for a few more
years. On newer cars where there is minor paintwork damage that can be caused by a
37
number of reasons then spot painting can be used to repair this. An auto paint shop will
generally be capable of carrying out either of these types of paintwork.
Using an auto paint shop to keep the paintwork looking good on a new or older car can
have a few advantages. Most people like having possessions that look their best and this
is as true for a car or truck as it is for anything. If you are trying to sell your vehicle, then
the better it looks the quicker it should sell and the more money you should get. The
paintwork on your car also does a job acting as a barrier to protect the metal below from
corrosive effects such as UV light, bird droppings, salt spray and other dirt. Keeping the
paintwork on a car in good condition should therefore help to extend the useful life of the
vehicle.
If you need the services of an auto paint shop for your vehicle there are a few of these
around. This can include nationwide chains and local independent shops. A couple of the
well known nationwide chains include Earl Scheib and Maaco. If you have one of these
nearby they can be good places to get the work done for a few reasons. They generally
offer a good cost for their services and also tend to have the biggest selection of paints
available. Maaco for example have around 10,000 colors available, so if you need only
minor paint repairs they should have a color that is identical to that of your vehicle.
The cost of having a car painted will obviously depend on a few factors. One of these is
the size of the job and whether the whole car needs to be repainted or whether spot
repairs can be done. Other factors can include the quality of the work. Earl Scheib, for
example, offers a silver, platinum and diamond paint service. If the paintwork on your car
needs some attention the best way to find out how much it will cost is to take it to an auto
paint shop and get an estimate. It can be worth doing this at two or three paint shops to
get some price and service comparisons.
Keeping the paintwork on a car looking good is common sense. If the paint on your
vehicle needs attention an auto paint shop can be one of the best places to get this done.
They have the skill and experience to do a good job and when finished should have your
vehicle looking back to its original best.
FINAL ASSEMBLY
Final assembly
Tough competition in the automotive sector places huge demands on the final assembly
process. Valmet Automotive's final assembly consists of a multiproduct single assembly
line, complemented by sub-assembly lines. The assemblies have been developed to also
meet the new demands of electric vehicles.
38
The cars are assembled flexibly according to customer-specific needs. World-class
quality of the final assembly has been demonstrated during the long collaboration with
Porsche, also recognized by J.D. Power.
The production process is based on the balanced sequence method, with sub-assemblies
and suppliers synchronized in accordance with the just-in-time principle.
ASSEMBLY LINE
PLASTIC SHOP
A quick look inside any model of car shows that the passenger compartment is
dominated by plastics. This is the area where plastics are more traditionally established.
But besides instrument panels, interior trim and upholstery, plastics are used in lighting,
bumper systems, fuel storage and delivery systems, ducts, fenders and exterior body
panels and increasingly in engine compartment or other under-the-hood components.
39
The ``invasion`` of plastics in the engine compartment is by no means over. Engineers in
plastics and automobiles are working together closely now to optimise other systems,
integrating injection and blow moulded parts, and harnessing plastics and elastomers that
give a range of properties from ``soft`` to ``hard``, but can be moulded simultaneously or in
sequence, offering a better product without expensive assembly work.
Plastics are also beginning to make a significant contribution to the structural make-up
of the car. Intensive development of thermoplastics has opened the way to production
of individual bodywork panels by injection moulding, to meet the high temperature of the
paint stoving ovens used by the automotive industry, and electrically-conductive grades,
for electrostatic painting.
• Regulatory
Communication
Plastics in Transportation
Thanks to their numerous advantages, plastics have been increasingly used in vehicles
over the last 25 years, representing today an average of more than 100 kg per car which
replace 200 to 300 kg of traditional materials.
41
Maintanance Shop
Auto maintenance describes the act of inspecting or testing the condition of car subsystems
(e.g., engine) and servicing or replacing parts and fluids. Regular
maintenance is critical to ensure the safety, reliability, drivability, comfort and longevity
of a car. During preventive maintenance, a number of parts are replaced to avoid
major damage or for safety reasons, e.g. timing belt replacement.
The actual schedule of car maintenance varies depending on the year, make, and model of
a car, its driving conditions and driver behavior. Car makers recommend the so-called
extreme or the ideal service schedule based on impact parameters such as
• Car wash
check/replace the engine oil and replace oil filters
check/replace
•
inspect or replace check or refill windshield washer fluid inspect for pressure and wear
43
• test electronics, e.g., Anti-lock braking system or ABS
read fault codes from the Engine control unit
Some tasks that have equivalent service intervals are combined into one single service
known as a tune-up. In modern cars, where electronics control most of the car's functions,
the traditional tune-up doesn't apply anymore. Maintenance jobs like a tune-up used to
mean getting the engine's performance back on track. Today embedded software takes
care of it by constantly checking thousands of sensor signals, compensating for worn-out
spark plugs, clogged filters, etc. The so-called limp-home function allows driving on
limited power when the engine is in trouble. In the old days this might have meant a
breakdown.
Routine car maintenance is related to vehicle fuel economy.[1] Some of the procedures
include:
Ensure tires are properly inflated. The owners manual for the
vehicle will indicate the proper pressure to inflate you tires to.
Decreased tire pressure increases the rolling resistance of your
tires and decreases fuel economy, and may also increase tire wear
and impair performance.
• The thermostat, oxygen or O2 sensor should be replaced either at a
manufacturer recommended interval or when a electronic fault code/
low temperature problem is detected. Electronically fuel injected
vehicles have an O2 sensor or sensors in their exhaust system which
helps the vehicles computer determine how to optimize fuel economy.
These O2 sensors may need to be changed periodically for a
vehicle to optimize it's air fuel mixture and maximize it's fuel
economy.
Ensure vehicle air filters are clean. Black or otherwise dirty air filters
make your engine work harder to get enough air for proper
combustion and decrease its efficiency; however, electronically fuel
injected cars can automatically compensate for the decreased air
flow caused by a dirty air filter and experience relatively little
decrease in fuel economy. Most owners’ manuals will recommend a
service interval at which to change the air filter, but periodic visual
inspection is the best way to ensure that the air filter is clean.
Using the recommended weight of oil can decrease the burden on the
engine. Heavier oil weights, such as 20W-50, are harder to maneuver
through the engine than, for example, 10W-30 or 5W-20 oils. The
result can cause a decrease in fuel economy.
In some countries, the completed services are recorded in a service book which is rubber-
stamped by the service center upon completion of each service. A complete service
history usually adds to the resale value of a vehicle.
MATERIAL HANDLING
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The loading, moving, and unloading of materials. The hundreds of different
ways of handling materials are generally classified according to the type of
equipment used. For example, the International Materials Management
Society has classified equipment as (1) conveyor, (2) cranes, elevators,
and hoists, (3) positioning, weighing, and control equipment, (4) industrial
vehicles, (5) motor vehicles, (6) railroad cars, (7) marine carriers, (8)
aircraft, and (9) containers and supports.
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