supply chain activities of atlas honda motorcycles pakistan
TRANSCRIPT
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Atlas Atlas HondaHonda Pakistan Pakistan
Presented by:Presented by:Nazish SohailFaizyab ShahidHaseeb Tahir
Non Presenting MembersNon Presenting Members: Shahbaz Chaudhry
Anjum Altaf ButtWajahat Altaf
Hammad M Lali
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winning with SCM
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About this Presentation….
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You’ll Hear!
Industry AnalysisIndustry AnalysisAtlas Honda PakistanAtlas Honda PakistanOrganizational StructureOrganizational StructureCompany Supply ChainCompany Supply ChainProduct RangeProduct RangeProcurement Procurement SAPSAP
Manufacturing Manufacturing Warehousing Warehousing Vendors/ Dealers Vendors/ Dealers Transportation Transportation ConclusionConclusion
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Industry AnalysisMotorcycle 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. Atlas Honda Limited is a joint venture. Country’s largest in-house manufacturing Country’s largest in-house manufacturing capability at its Karachi and Sheikhupura plants. capability at its Karachi and Sheikhupura plants. 14 Joint Venture/Technical Assistance 14 Joint Venture/Technical Assistance Agreements. Agreements. SKP Plant comprises of 500K plant.SKP Plant comprises of 500K plant.Daily motorcycle production is 1325 units Daily motorcycle production is 1325 units comprising 4 models. comprising 4 models. 65.7 percent share in the total sales in Pakistan. 65.7 percent share in the total sales in Pakistan. turn over is less than 3 percent. turn over is less than 3 percent. 307 dealers nationwide.307 dealers nationwide.Technical Training Centers in Karachi and Lahore.Technical Training Centers in Karachi and Lahore.
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Organizational Structure
CEO
Finance Marketing Supply chain HRM R & DQuality
Procurement Warehouse Production Control
Imports
LocalSAPRM
Chairman
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Company Supply chainCustomer Dealers
Assembly / manufacturing plant
Central Warehouse (Sheikapura)
Part assembling (Karachi)
ProcurementSuppliers
Import
5% CD-70
15% CD- 125
Local
95% CD-70
85% CD- 125
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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 70Key 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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ProcurementProcurement Process
1. Forecasted Procurement2. Bill Of Material (B.O.M.)3. Price Negotiation4. Performa Invoice is called5. Purchase Order is placed6. Establish Letter of Credit (L.C.)7. Revival and Recovery of Original
Documents:8. Bill of Lading9. Invoice10. Letter of Credit11. Clearing Agents12. Delivery and Possession of
Material13. 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
Pull SystemPush System
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Manufacturing
CD 70:
Components
Imported 5%
LocallyProcured 95%
Lead Time:6 months
Lead Time: 1 week
CD 125:
Components
Imported 15%
LocallyProcured 85%
Lead Time:6 months
Lead Time: 1 week
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Manufacturing Process
In Atlas Honda there are total fourteen processes, as follows:In Atlas Honda there are total fourteen processes, as follows:
Frame Assembling Paint shop
BuffingAlternative Current generation
Drum Gear ShiftDrum Gear Shop
Machine ShopFuel Cope
Die castingEngine Assembling
WieldingIgnition Coil Shop
Switch AssemblingEngine Machine Assembling
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Bottlenecks In Atlas Honda supplier are considered
as bottlenecks…
SupplierProcurement
Part Assembling (Karachi) Central
Warehouse (Sheikapura)
Assembling/Manufacturing
PlantDealers
Bottleneck
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WareHousing
STORESStores 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 shopsHandles the scraps & wastes generated in the factory
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STORES DEPT
GeneralStores
CKDStores
RMSStores
RPS Stores
DCCStoresss
ScrapYard
Press Parts in-process
In-HouseParts
Local/subcontractrParts
Local/ Subcontr-actor parts
In-HouseParts
Division of stores
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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” dealers5s stands for the following
five facilitiesSaleService Spare partsSpecial sale Second hand sales
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Major Selling Cities
Atlas Honda
Karachi Hyderabad Lahore Sheikapura 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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