2. 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
3. Vision
“To be the market leader in the motorcycle
industry, emerging as a globally competitive
center of production and exports”.
4. Products
• Four major products;
• CD 70, CD 100, CG 125 and CG 125 Deluxe
• Also manufactures 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
5. Competitors
• Yamaha
• Suzuki
• Pak Hero
• Hero
• Star
• Lifan
• 30+ more
• Atlas Honda has 65.7 percent share in the total sales in Pakistan
6. Strategic Goals
Meet Quality standards.
Continuous induction of technologies.
Customer Facilitation & Satisfaction.
5s Strategy
Sale, Service, Spare parts, Second hand sales, Safety
7. How Supply Chain works at
ATLAS HONDA?
• The Supply Chain Management at Atlas Honda is generally
contains the following functions;
• SAP “System Application & Products"
• Production Planning
• Manufacturing
• Warehousing
• Vendors
• Transportation
8. SAP “System Application &
Products"
• Uses Master production scheduling (MPS)
• Help Atlas Honda they anticipate shortage before its occur,
(current stock, purchasing order, manufacturing order & sales
order)
• MPS you 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
9. 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.
10. 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
12. Warehousing
• Stores dept. 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
• Atlas Honda 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
13. Vendors/Suppliers
• Total number of suppliers 250
• At Karachi 120
• 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 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
14. Transportation
• Atlas Honda limited hire local contractor for the purpose of
transporting assembled parts from Karachi to Sheikhupura
• There are 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)
15. 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
