ASSIGNEMENT

GROUP MEMBERS

ABDUL RAUF 2K19-ME-01

HAMMAD RAFIQ 2K19-ME-03

AHMAD HANIF 2K19-ME-15

NASIR MUMTAZ 2K19-ME-29

INSTRUCTOR

DR ZULQARNAIN ABBAS

SUBJECT

PRODUCTION MANAGEMENT SYSTEM

 PRODUCTION MANAGEMENT SYSTEM IN AUTOMOBILE
INDUSTRIES
Production and performance management provides essential functions to control and monitor
production. Control and monitoring of manufacturing is one of the most important tasks in the
automotive industry. Nevertheless, the potential that control and monitoring systems offer is
often not exploited. Production and performance management serves to optimally plan, control
and check production processes. Production and performance management makes it possible to
monitor and analyze all process channels on an ongoing basis, to improve utilization and
optimize production processes. Both commercial processes and manufacturing processes thus
become ’transparent’ across the company. The result is optimum utilization of production
capacities. Costs are reduced noticeably when an effective production and performance
management solution is used; productivity increases and thus competitiveness too.

Increased output, increased flexibility, increased safety

These benefits relate to all manufacturing companies, but are particularly important for the
automobile industry. On one hand, especially in this industry production hours and cost
continually need to be reduced. On the other, the complexity of business processes continues to
increase due to the numerous different types of models. This affects production, but also other
business areas such as purchase, logistics, etc. Only integrated and transparent processes
guarantee efficient production and an integrated flow of information.

Professional monitoring and competent analysis

The more complex a production system is, the more significant the automated monitoring of
equipment and automated monitoring of machine data becomes. Automated monitoring is more
efficient and safer and less 3 prone to errors. If there is transparent and reliable production data,
companies can verify decisions they have taken and quantify their success. With the help of key
performance indicators closely related to the process, companies can evaluate the effects of
changes in production and compare them to earlier data or business targets. Will a change bring
the desired success or is the expense disproportionate to the benefit? In order to calculate
process-orientated key performance indicators, companies must record, consolidate and prepare
the raw data that is generated in the production process and pull it together. To do this, it is
necessary to have an overview of all current process information as well as the historic records of
process data. This goes far beyond the display of current alarm, item numbers and equipment and
machine status.

Important production key performance indicators

The availability calculations relating to downtime and volumes for machines and equipment are
important process-orientated key performance indicators. The key performance indicators for
volume-related availability of equipment provide meaningful and comparable results. The
quality of the manufactured parts is determined by means of the quality rate figure. Thanks to
different types of display, such as a table or a curve diagram, it is possible to quickly make
comparisons between target and actual values, as well as good parts and rejected parts. The
statistical evaluation of alarm data and unplanned downtime make it possible to localize and
reveal weak points in the system. One of these key performance indicators is availability in
relation to equipment downtime. In addition, the statistical evaluation of the alarm data provides
a meaningful overview of problems. In this way, the user can quickly find out which problems
occur most often and which ones cause the longest downtime. With this information, he can put
targeted measures in place in order to minimize the downtime of the facility and, thus,
considerably increase productivity and effectiveness.

Comparative analysis of alarm data makes it possible to come to a conclusion about the possible
causes for those alarms. Shift-related or equipment-related summations can provide valuable
information for causal analysis. A comparison of this summated data can illustrate the
differences between shifts in terms of both the equipment and employees. Management can then
quickly identify possible causes of any differences. This analysis can summarize a company’s
activity in shift, day and weekly reports, or in equipment or machine reports. A comparison of
key performance indicators provides information on possible optimization measures and
demonstrates whether implemented measures have been successful.

The output of the equipment as a whole counts

In addition to the key performance indicators stated, overall equipment effectiveness (OEE) is
becoming increasingly important in the industry. It comprises the availability of equipment, the
quality rate and the level of performance. Multiplying these figures, it reflects the level of
production performance. OEE takes into account losses that arise in a system and that have
effects on the whole of production. It is particularly important, because the capacity losses of
individual considerations multiply; this is often not taken into account in a pure consideration of
productivity. Thanks to an OEE analysis, production companies can find out the sources of
losses, introduce measures to offset them and uncover potential for optimization. In the
automotive industry particularly, OEE is considered the basis for an evaluation of overall
success. The greater the OEE figure is, the fewer losses have occurred in production.

Forward-thinking maintenance
Analysis proves that permanent and regular maintenance is many times more cost-effective than
single reactive acts of maintenance carried out in response to a problem. In addition to the
monitoring of processes, the machines should therefore be permanently monitored as part of a
preventative maintenance program. To do this, the software must record and document all data
from the machine components and aggregates. As a result, not only can maintenance measures
be implemented in advance, the lifetime of the machines increases thanks to planned, regular
maintenance. Positive effects include the highest level of machine efficiency possible, increased
safety and the potential for cost reductions.

TOYOTA PRODUCTION SYSTEM

Toyota Motor Corporation's vehicle production system is a way of making things that is
sometimes referred to as a "lean manufacturing system," or a "Just-in-Time (JIT) system,"
and has come to be well known and studied worldwide.

This production control system was established based on many years of continuous
improvements, with the objective of making the vehicles ordered by customers in the quickest
and most efficient way, in order to deliver the vehicles as swiftly as possible. The Toyota
Production System (TPS) was established based on two concepts: "jidoka" (which can be loosely
translated as "automation with a human touch"), as when a problem occurs, the equipment stops
immediately, preventing defective products from being produced; and the "Just-in-Time"
concept, in which each process produces only what is needed for the next process in a continuous
flow.

Based on the basic philosophies of jidoka and Just-in-Time, TPS can efficiently and quickly
produce vehicles of sound quality, one at a time, that fully satisfy customer requirements.

TPS and its approach to cost reduction are the wellsprings of competitive strength and unique
advantages for Toyota. Thoroughly honing these strengths is essential for Toyota's future
survival. We will use these initiatives and develop our human resources to make ever-better cars
that will be cherished by customers.

Human wisdom and ingenuity are indispensable to delivering ever-better cars to customers.
Going forward, we will maintain our steadfast dedication to constantly developing human
resources who can think independently and implement.
Just-in-Time
―Improving productivity―
Making only "what is needed, when it is needed, and in the amount needed"

Producing quality products efficiently through the complete elimination of waste,

inconsistencies, and unreasonable requirements on the production line. In order to fulfill an order
from a customer as quickly as possible, the vehicle is efficiently built within the shortest possible
period of time by adhering to the following:

1. When a vehicle order is received, production instructions must be issued to the beginning
of the vehicle production line as soon as possible.
2. The assembly line must be stocked with the required number of all necessary parts so that
any kind of ordered vehicle can be assembled.
3. The assembly line must replace the parts used by retrieving the same number of parts
from the parts-producing process (the preceding process).
4. The preceding process must be stocked with small numbers of all types of parts and
produce only the numbers of parts that were retrieved by an operator from the next
process.

Toyota Production System (TPS) Concept

The Toyota Production System (TPS), which is based on the philosophy of the complete
elimination of all waste in pursuit of the most efficient methods, has roots tracing back to Sakichi
Toyoda's automatic loom. TPS has evolved through many years of trial and error to improve
efficiency based on the Just-in-Time concept developed by Kiichiro Toyoda, the founder of
Toyota Motor Corporation.

Waste can manifest as excess inventory, extraneous processing steps, and defective products,
among other instances. All these "waste" elements intertwine with each other to create more
waste, eventually impacting the management of the corporation itself.

The automatic loom invented by Sakichi Toyoda not only automated work that used to be
performed manually, but also built the capability to make judgments into the machine itself. By
eliminating both defective products and the associated wasteful practices, Sakichi succeeded in
rapidly improving both productivity and work efficiency.

Kiichiro Toyoda, who inherited this philosophy, set out to realize his belief that "the ideal
conditions for making things are created when machines, facilities, and people work together to
add value without generating any waste." He conceived methodologies and techniques for
eliminating waste between operations, between both lines and processes. The result was the Just-
in-Time method.

Via the philosophies of "Daily Improvements" and "Good Thinking, Good Products, TPS has
evolved into a world-renowned production system. Even today, all Toyota production divisions
are making improvements to TPS day-and-night to ensure its continued evolution.
The Toyota spirit of making things is today referred to as the "Toyota Way." It has been adopted
not only by companies in Japan and within the automotive industry, but in production activities
worldwide, and continues to evolve globally.

HONDA PRODUCTION SYSTEM

‘Honda’ is perhaps one of the very few companies which fulfill this criterion and
contribute to up holding these traditions. As I am sure, we all have been associated
with Honda in one way or another, so I thought it’s about time to shed some light on Atlas
Group corporation and its consistent growth in Pakistan, which has been the sole distributor and
assembler of Honda Products in Pakistan The organization was birthed due to a resultant
joint venture of technical collaboration being signed between Atlas Auto Limited and
Honda Motor Company Limited in early 1960’s which was followed four years later by
another technical collaboration with the Japan Battery Co. Ltd.

Production Strategy
Process Design:

Honda Atlas Cars (Pakistan Ltd. has a separate production department which is headed by Vice
President (Production). A Japanese person is currently working on this seat. The production
department has a number of sections such as:

 Vendor Section
 Engine Section
 Welding Section
 Maintenance Section
 Paint Vehicle quality control
These along with some other sections are arranged in four groups, each one headed by a Gm. For
Example, there is one GM for welding, paint, and maintenance. Plant Capacity Currently, the
plant has a capacity of 35 vehicles per day which is lower than that of Toyota. As for as the
production level is concerned, it varies from time to time. It was15cars per day when visited the
factory. This shows that the plant is being underutilized. There may be several reasons for this
under-utilization such as:
 The weak economic condition of the country.
 Problems with the cotton crop.
 The high price of Honda Cars.
 Decrease in the purchase of cars by large companies.
 Presence of Toyota Decrease in the purchasing power of potential customers.

Marketing Strategy
Hond
a Atlas Pakistan Limited established automobile companies in Pakistan they always keep focus
on that mission and vision in the same direction HACPL does target of goal achievement. The
standard of the HACPL according to marketing is very high. HAPL existence and central point of
Honda Atlas to sell dream Car because in Honda point of view “Power of Dreams “itself
attracting the customer for that need to build unique product .HACPL marketing objective has
been targeting in terms of provide satisfied customer service, make possible to keeping each the
product, and strive to give outstanding service to valued customers. In addition to providing
regular service to customers, the company also regularly conducts Service Campaigns, to
facilitate customer's need for service. This has given company customers’ absolute confidence in
their cars. In the constant endeavor of Honda Atlas company to achieve No.1 Customer
satisfactions with respect to loyalty of brand. Honda Atlas Company has been committed to meet
customer expectations, and to provide good value for money.

4p’s Concept of Honda

Marketing mix elements or 4p’s strategy of marketing is the essence of any business same like this
strategy of marketing mix apply in top listed automobile company overall the world Honda
atlas these key elements of marketing mix make the difference between Honda atlas and
other automobile companies, Honda atlas also comes up with strategy. To figure out which
strategy is best forth given the objectives and resources. They must also consider the strengths
and weaknesses of the company as well as opportunities and threats to enhance the aptitude
of the companies; a marketing mix strategy is introduced. The marketing strategy will create
lucrative marketing mixes for defined target markets. Honda atlas has been enhancing their
outcomes and marketing value by implementing the right combination of the four P’s.
Comparison of Toyota & Honda Production Management System
These two companies have succeeded based on management strategies. With the automobile
industry becoming increasingly competitive, Honda and Toyota companies have to increase
various strategies so as to thrive in the global market. The purpose of this essay is to compare
and contrast the management strategies of Honda and Toyota in order to account for its success,
which has allowed them to expand with branches around the world.
To begin with the similarities, both the leadership skills of Honda and Toyota Motor Corporation
represent team building in order to motivate a process of expansion and development
organization into international markets. The abilities of leaders are focused on managing human
resources, quality, and production targets which they use as a philosophy to share and solve work
problems with colleagues. The role of a company leader is to emphasize fundamentals in the
long-term. In the same way, these two companies have brainstorm sessions with the CEO; it is
important for managers working in organizations to think about their own experiences with
employees to understand how essential the relationship of the leader-follower for organizational
well-being is, as well as how irreplaceable is a good leader. Brainstorming works by the method
of association, it can improve collaboration and increase the quantity of ideas, and is designed so
that all accompany participate. This technique may be necessary to prioritize them to reach to the
best solution in a proper way. The CEO also builds clear vision including trust towards
employees in order to achieve an objective. The same of leader’s skills seem to that motivating
teams and helps them to develop and work together towards common goals.

Supply chains techniques

The supply chains of these automobile brands have established a very high level of supply chain
management. Coordination across several functions has enabled better management of the supply
chain network by both. A supply chain is a process that causes products such as procurement,
manufacturing, distribution, and transportation. Therefore, a supply chain is like the backbone of
manufacturing process apart from timely availability of raw materials. As the author claims the
company needs to activate their suppliers so as to ensure continuous supply. The concept of
supply chain management of Honda and Toyota consists of all parties involved in implement
customers’ demands. The parties involved are manufacturers, suppliers, transporters,
warehouses, retailers, and customers. Therefore, the production will start from manufacturer
based on prediction, inventory, and stock component and sent to buyer. Both Parts and
accessories for the local dealer and national customers are no longer being fully sourced from
Japan, but are being procured from around the world. The emphasis on the smoothing of the
production flow and just-in-time assembly requires strictly scheduled deliveries at the same time,
the low inventory pull system for replenishment demands high frequency, small lot deliveries.
This result is often a large of low inventory which impacts customers. The supply chain
management of both organizations is a part of success that they develop this strategy with
supports different decisions and provides a clear viewpoint of products, information, and
services. Supply chain is techniques of all parts coordinating from supplying raw materials to
delivering products to customers. Toyota has different management methods better than Honda
is “Lean” manufacturing, which focuses on versatility to respond changes, such as customer
demand, new products, and employees. Lean system uses resources to create value for
customers, thinking from the customer view, reduce the waste including continuous
improvement to achieve high results even less resources. Therefore, organizations view
continuous improvement as a daily mindset and practice which they are able to deliver on their
cars to their customers. The goal of Lean process improvement is to enable teams to
systematically find ways to deliver more value to their customers faster and the operational
structure enough to perform by enhancing productivity. Moreover, supply management enables a
decrease in inventory cost. Fulfillment of orders and overhead cost will be destroyed, allowing
for inventory to have a much more steady flow. While Honda brand have supply chain method
such as buying utility policy from dealers including concentrate on quality, cost, and delivery.
For a successful supply chain has to deliver goods to their customers as quickly as possible
without errors including depends on the product design.

Marketing strategies

Both Honda and Toyota’s marketing strategies have created these global brands that have
brought several attractive and innovative car models to the market. They have also a major
market in Japan which is part of their revenues. Thus, the brands use several channels for
marketing apart from the traditional methods including also advertising products and models on
digital channels and promoting their brands using sponsorships. Moreover, the main aim of
promotion is to persuade customers, create interest, and generate sales or present information to
buyer. It is one of the basic elements of the market, which includes product, price, place, and
promotion. The way of promotion is targeted for communication with consumers in the
independent media such as the newspapers and magazines. Therefore, advertising is the main
method for their companies. The marketing goals normally are the expanding of the company.
For example, Honda and Toyota, concentrated on grow their business including there is
marketing plans that they emphasizes strategies to increase customers base. Nevertheless, having
a suitable marketing plan will help company leaders develop such as managing product, price,
and process. These marketing strategies are a crucial aspect of business and require analysis,
time, planning, and appropriate budget allocations. The marketing strategies are important to both of
Honda and Toyota companies as a result of they have to contract and collaborate with their consumers. It
is basically focused on encouraging target population to buy products and services. Nonetheless, the
differences of marketing between two organizations are marketing mix such as price, placement, and
promotion. The marketing mix is one of the most famous marketing terms that analyze management and
plan to conduct marketing activities. Firstly, pricing strategies rely on pricing policies for
example, setting by price level, price flexible and the diversity of competition in the market.
Determining this will be a critical factor in revenue for the companies as it will impact profit,
supply, and demand of customers. This strategy will make consumers compare the options with
similar prices, and as a result sales of the more attractive high-priced product will increase.
Secondly, placement strategies focus on providing customers access to the product. For instance,
where are target customers shopping? It’s important to consider how each of these places
influences the overall customer experience. Finally, promotion strategies will motivate and
convince buyers to be interested and purchased decisions including services which Honda and
Toyota have different promotions such as sale promotion and after-sales service. An effective
promotion will ensure good sales and a manufacturer must attempt to create a conducive
environment.

CONCLUSION
To sum up, this essay has tried to highlight the many strategies that both management systems
use to succeed in the expansion of branches around the world. The management strategies of
both companies have similarities and differences in terms of leadership skills, supply chain, and
marketing. Therefore, it appears that their leadership skills focus on team building when the
CEOs persuade employees to manage problems by creating brainstorming sessions to reach their
company goals. The supply chains are part of the management strategy that they have attached
significance to process from raw materials to customers. A key strategy of marketing is not only
to product or promotion, but they have also digital marketing methods such as website so as to
promote merchandise including increasing their new customer’s base. On the other hand, among
the plans and visions of leader styles, there are also differences that it is essential towards
employees to follow the CEO. Both companies have different methods of managing supply
chains which Toyota focus on buyer demand with “Lean” system and delivering products to
customers. They depend on planning systems including using marketing factors such as price,
placement, and promotion. Taken together, these findings point to the similarities and differences
of the management strategies of Honda and Toyota automobile. However, there are a lot of
strategies that both companies still need to make them more successful. Honda could learn from
Toyota about the “Lean” manufacturing system. Meanwhile, Honda has developed a process in
order to expand into the global market better than Toyota. Further research is clearly needed on
the issue of how they concentrate on marketing communication of higher competition.

comparison