Atlas Honda Pakistan

Presented by:
Nazish Sohail
Faizyab Shahid
Haseeb Tahir

Non Presenting Members:
Members
Shahbaz Chaudhry
Anjum Altaf Butt
Wajahat Altaf
Hammad M Lali

1

winning with
SCM

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About this
Presentation….
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You’ll Hear!
Industry Analysis
Atlas Honda Pakistan
Organizational Structure
Company Supply Chain
Product Range
Procurement
SAP

Manufacturing
Warehousing
Vendors/ Dealers
Transportation
Conclusion

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Industry Analysis
Motorcycle Industry estimates show that last year a total
of over 750000 motorcycles were sold in the country
The industry has been experiencing
a healthy growth rate of around 30%
per year for the past 4-5 years.
Pakistan came at number seven
with a production of 750,000 units
of motorcycles constituting to 2%
of the global total.

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Market Share of Motorbike in
Pakistan

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Company Profile
Atlas Honda Limited is a joint venture.
Country’s largest in-house manufacturing
capability at its Karachi and Sheikhupura plants.
14 Joint Venture/Technical Assistance
Agreements.
SKP Plant comprises of 500K plant.
Daily motorcycle production is 1325 units
comprising 4 models.
65.7 percent share in the total sales in Pakistan.
turn over is less than 3 percent.
307 dealers nationwide.
Technical Training Centers in Karachi and Lahore.

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Organizational Structure
Chairman
CEO

Finance

Marketing

Procuremen
t

Supply
chain

HRM

Warehouse

Quality

R&D

Production
Control

Imports
RM

SAP

Local

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Company Supply chain
Customer

Dealers

Assembly /
manufacturing plant

Central
Warehouse
(Sheikapura)
Import
5% CD-70
15% CD- 125

Local
95% CD-70
85% CD- 125
Part assembling
(Karachi)

Suppliers

Procurement

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Dynamics of Material Flow

Supplier

Plant

Warehouse

Logistics

Retailer
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Dynamics of Order Flow

Supplier

Plant

Warehouse

Logistics

Retailer
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Product Range
CD 70
Key Features
» Big and Comfortable Seats
» New Beautiful Graphics
» Petrol Tank with 9 Liter
Capacity
» Super Econo Power, 4-Stroke
Engine
» New Mud Flap
» Strong Side Cover with Lock
» New Utility Box

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CD 100
Key Features
» Strong Footrest
» Fuel Guage Indicator
» Multi Reflector Head Light
» Winning Style
» Econo Power 4-Stroke Engine
» Double Cradle Strong Tubular
Frame
» Strong Suspension

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CG 125
Key Features
» Comfortable Seat with Rear Grip
» New Beautiful Petrol Tank with
Graphics
» Strong 4-Stroke Smoke Less
Engine
» Stylish Speedometer with
Economy Zone
» Elegant Front Light
» New Shape For Back Light

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CG 125 Delux
Key Features
» Attractive Fuel Tank with modern
graphics
» Speedometer with trip meter
» Tachometer with Fuel Gauge
Indicator
» Black painted silencer with stylish
cover
» Front hydraulic disc brakes
» Back light with aerodynamic cowl
» Stronger and adjustable cushion

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Competition
Yamaha
Suzuki
Sohrab
Pak hero
Hero
Star
Lifan
Jailing

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SAP “System Application & Products"
Master production scheduling (MPS)
Material Requirement Planning (MRP)

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Procurement
Procurement Process
1. Forecasted Procurement
2. Bill Of Material (B.O.M.)
3. Price Negotiation
4. Performa Invoice is called
5. Purchase Order is placed
6. Establish Letter of Credit (L.C.)
7. Revival and Recovery of Original
Documents:
8. Bill of Lading
9. Invoice
10. Letter of Credit
11. Clearing Agents
12. Delivery and Possession of
Material
13. Good Receipt Note

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Production Planning
Atlas Honda total plant
capacity is 500,000
units in Shaikhupura
and 105,000 units in
Karachi
planned to produce
400,000 units
using both push as well
as pull system

Long range capacity
planning

Aggregate Planning

Master Production
Scheduling

Production Planning &
control system

Push System

Pull System

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Manufacturing
CD 125:

CD 70:

Components

Components

Imported
5%

Lead Time:
6 months

Locally
Procured 95%

Lead Time: 1 week

Imported
15%

Lead Time:
6 months

Locally
Procured 85%

Lead Time: 1 week

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Manufacturing Process
In Atlas Honda there are total fourteen processes, as follows:
Frame Assembling
Paint shop
Buffing
Alternative Current generation
Drum Gear Shift
Drum Gear Shop
Machine Shop
Fuel Cope
Die casting
Engine Assembling
Wielding
Ignition Coil Shop
Switch Assembling
Engine Machine Assembling

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Bottlenecks
In Atlas Honda supplier are considered
as bottlenecks…
Bottleneck

Supplier

Procurement

Part Assembling
(Karachi)

Assembling/Man
Central
ufacturing Plant
Warehouse
(Sheikapura)

Dealers

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WareHousing
STORES
Stores dept. at AHL performs
following functions:
Manages the receiving,
stacking & issuance of parts &
materials to the shop.
Ensures the provision &
dispatches of required parts to
SKP & KHI plant, spares part
division & vendors.
Handles the rejections &
damages from all shops
Handles the scraps & wastes
generated in the factory
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Division of stores

STORES DEPT

General
Stores

Press
Parts inprocess

CKD
Stores

In-House
Parts

RMS
Stores

Local/sub
contractr
Parts

RPS
Stores

Local/
Subcontr
-actor
parts

DCC
Stores
ss

Scra
p
Yard

InHouse
Parts

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Handling Techniques
At AHL, following handling techniques are used:
For handling from shop to shop especially
designed trolleys, bins and pallets are used.
Imported motorcycle components are received in
steel & wooden cases & pallets.
Local vendor parts are received from receiving
section in standard carton boxes.
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VENDORS/DEALERS
At present, 82 vendors are working with the
company.
Functions:
This department 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.
This department also deals with the CKD (complete knock
down).
This department 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.
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Dealers
Atlas
Honda
has
established
countrywide
dealers’ network..

“5S” dealers
5s stands for the following
five facilities
Sale
Service
Spare parts
Special sale
Second hand sales

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Major Selling Cities
Atlas Honda

Karachi

Hyderaba
d

Lahore

Sheikapur
a

Sialkot

Gujranwala

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Transportation
Type of trucks and there
capacity:
HINO (125 motorbikes)
BEDFORD (110
motorbikes)
MAZDA (65 motorbikes)

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CONCLUSION
…. “Right time delivery to the right
customers.”

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