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  2. 2. Presented by:<br />SHEEMA RAZA 2936<br />ADIL AZIZ 2938<br />KHAWAR ATEEQ 2934<br />SANA MUSHTAQUE<br />Sir. SOHAIL MAJEED IQRA UNIVERSITY <br />
  3. 3. SCM Mission<br />To create a seamless end-to-end Supply Chain from suppliers to customers, which provides excellent Customer Service at optimal overall cost through:<br />Efficient Business Partners relationship <br />Flexible manufacturing <br />Reliable distribution <br />Reduction in cost base <br />
  4. 4. Supply Chain Goals<br />Efficient supply chain management must result in tangible business improvements. It is characterized by a sharp focus on ;<br />Revenue growth<br />Better assets utilization<br />Cost reduction<br />
  5. 5. Supply Chain<br />in <br />Hinopak Motors Limited<br />
  6. 6. Introduction of Hinopak Motors<br />Area<br />24,000m2<br />Area<br />47,000m2<br />Employees<br />905 Nos.<br />Employees<br />454 Nos.<br />C H I N A<br />Assembly Operations Plant<br />Body Operations Plant<br />NWFP<br />Peshawar<br />Islamabad<br />A F G H A N I S T A N<br />Punjab<br />Lahore<br />Faisalabad<br />Multan<br />Quetta<br />I N D I A<br />Province<br />IRAN<br />Federal Capital<br />Sadiqabad<br />Balochistan<br />Provincial Capital<br />Sindh<br /><ul><li> Established in 1986
  7. 7. Share Holding</li></ul>Hino & TTC = 89% & Public = 11%<br /><ul><li> Head Office in Karachi City</li></ul>Hino Head Office<br />Hino Area / Rep. <br />Offices<br />KARACHI<br />ARIBIAN SEA<br />Head Office, Karachi - Pakistan<br />
  8. 8. PRODUCT RANGE<br />Assembly Operation Plant (AOP)<br />500 SERIES<br />300 SERIES<br />BUS SERIES<br />AK1JR<br />AK1JR-CNG<br />AK1JM<br />RK1J<br />FB2W<br />AK1JR-LH<br />DUTRO-LH<br />DUTRO (4x2) <br />JR. DUTRO (4x2)<br />HIGH POWER<br />DUTRO (4x2)<br />FG1J (4x2)<br />FL1J (6x2)<br />FM1J (6x4)<br />SG1J (4x2)<br />FM2P (6X4)<br />GT1J (6x4)<br />IMV FRAME<br />
  9. 9. PRODUCT RANGE<br />Body Operation Plant (BOP)<br />Urban Bus<br />Splendor Bus<br />CNG Bus<br />Senator<br />Urban Bus<br />Rapid liner<br />Road liner<br />Bus Bodies<br />Truck & Specialized Bodies<br />
  10. 10. Achievements<br />ISO 9001 Certification<br />Hinopak is the only automotive company in Pakistan and the first Hino affiliate worldwide to receive the ISO 9001 certificate. This certificate has been given to Hinopak for implementing and maintaining a company-wide quality.<br />ISO 14001 Certification<br />Being a responsible corporate citizen striving for the improvement in our environment, both within and outside the company , Hinopak Motors Limited has voluntarily ISO 14001 Certification. ISO 14001 pertains to monitoring and managing the effect, which any business has on the environment.<br />OHSAS 18001:2007 Certification<br />Hinopak has successfully achieved accreditation to safety management system OHSAS 18001:2007.<br />OHSAS 18001 is a Health and Safety Management System, developed to assist in the reduction and prevention of accidents and accident related loss of lives, equipment and time.<br />
  11. 11. HINOPAK Sales Achievement (Last 10 Years)<br />World Recession<br />4,112<br />5000<br />3,593<br />3,017<br />2,614<br />3000<br />2,341<br />2,286<br />1,883<br />1,518<br />1000<br />895<br />876<br />0<br />2000<br />2002<br />2003<br />2004<br />2005<br />2006<br />2007<br />2008<br />2009<br />2001<br />
  12. 12.
  13. 13. Organizational Chart <br />
  14. 14. Supply Chain Structure in HINOPAK <br />Inventory <br />management<br />Procurement<br />manufacturing<br />Supplier<br />Customers<br />Final product<br />
  15. 15. Procurement<br />&<br /> inventory management<br />
  16. 16. Order Flow Process ( Customer to HPML) <br />
  17. 17. ERP System Implementation<br />Material Management<br />Inventory Control<br />Bill of Material<br />Ordering <br />Scheduling<br />Stock Checking & Control<br />
  18. 18. Classification of Inventory <br />CKD Parts<br /> These are high value, low volume parts these parts are outsourced mainly from Japan.CKD parts come on weekly bases and are issued CKD store. The rolling of these high value parts takes place on regular intervals<br />Vendorized / local parts<br /> These parts are purchased form specific vendors which are not international but local vendors, all types of parts under the category of Venderized/local parts, like High value, low volume, low value, high volume. <br />
  19. 19. Pareto Principle for Inventory Control<br />Pareto Principle is used as a Powerful Tool for Keeping with the lowest cost of stock. <br />The Manager MOD Frequently and Closely Control 20% of the Inventory Offer that makes 80% of total Inventory Value. <br />1700 items are available in different CBOM , 200 Kanban items.<br />Kanban <br />The concept is that a supplier should only deliver components to the production line as and when they are needed.<br /> Kanban limits the amount of inventory in the process by acting as an authorization to produce more inventory.<br />Kanban is maintaining minimum inventory on the floor.<br />
  20. 20. ImportProcurements Process<br />
  21. 21. OK<br />NOT OK<br />MRN generated<br />Finance (-tax & payment to vendor)<br />Local Procurements<br />
  22. 22. Global Procurements<br />
  23. 23. Example of ERP System<br />MRP PLANNING<br />
  24. 24. Warehouse management <br />
  25. 25. Warehouse Management<br />Stores:<br />Stores Department at Hinopak performs following functions.<br />Manages the receiving, stacking & Issuance of parts & materials to the shops.<br />Ensures the provision & dispatches of required parts to the shop floors, spares parts division & vendors.<br />Handles the rejections & damages from all shops<br />Division of Stores:<br />Stores department at Hinopak has been divided into a number of small stores according to the type of material being stored and function/services provided by the store.<br />
  26. 26. The division is shown as follows:<br />
  27. 27. Manufacturing<br />
  28. 28. Master Production Scheduling (MPS)<br /><ul><li>Master Production Scheduling (MPS)</li></ul>The objectives of this module are to help Hinopak Motors they anticipate shortage before its accrue, (current stock, purchase order, manufacturing order & sales order) these activities creates a projection of your stock levels anywhere from a week to several years in advance through this you can easily highlights your shortages.<br />MPS You can easily see what exactly the shortage will appear if we execute the specific production plan.<br />
  29. 29. Assembly Operation Plant ( Flow Diagram)<br />
  30. 30. Practice to Improve / Process Efficiency<br />To avoid 3Ms<br />
  31. 31. 5S<br />Activity<br />
  32. 32. Kaizen<br />The Japanese term for Continuous Improvement is kaizen and is the process of making incremental improvements, no matter how small, and achieving the lean goal of eliminating all waste that adds cost without adding to value. It pushes individuals skills for working effectively in small groups, solving problems, documenting and improving processes, collecting and analyzing data, and self-managing within a peer group. It pushes the decision making (or proposal making) down to the workers and requires open discussion and a group consensus before implementing any decisions. Kaizen is a total philosophy that strives for perfection and sustains Toyota Production System (TPS) on a daily basis.<br />
  33. 33. vendor management <br />
  34. 34. Vendor<br />Registration <br />Form<br />
  35. 35. Vendor<br />Evaluation<br />Form (Initial)<br />
  36. 36. Sourcing<br />There are three types of Sourcing <br />Sole <br />Technical specifications<br />Raw material location<br />Only single organization is producing that particular material.<br />Multiple<br />Quality<br />Costs<br />Price<br />Single Sourcing<br />Sourcing is based on the joined consensus of opinion of the organization. This results in long term contracts among the suppliers with a guaranteed volume.<br />
  37. 37. Quality Performance Scorecard for vendors (monthly basis)<br />Points ranking:<br />
  38. 38. Periodic Appraisal of Vendors <br />SCORE CARD<br />Criteria<br />On time delivery<br />Product technology<br />Lead time<br />Purchasing and material support<br />Process control<br />Process technology<br />QMS Certification<br />GRADING CRITERIA<br /><ul><li>A+ = 95 % and above
  39. 39. A = 85 % ~ 94 %
  40. 40. B = 75 % ~ 84 %
  41. 41. C = 65 % ~ 74 %</li></li></ul><li>Future recommendations <br />JUST IN TIME. Lean Purchasing Practices – small frequent deliveries, pulled to the line.<br />Reduced Inventory Carrying Cost.<br />Previously [6 + 6] Line Feeding …. Change to [1 + 1] Line Feeding.<br />Direct Feeding From Vendor To Line.<br />Reliability of Parts Good Quality Increase.<br />Function of QC Change from In-coming Inspection To Vendor Development.<br />Have a Second Source of Supply: Especially for critical parts, use two sources of supply<br />
  42. 42. Thank youfor your kind attention<br />