The Presentation on the topic of Honda Atlas Cars Pakistan Limited. Credit goes to Imtiaz Ahmad, Fran Tariq, Irfan Ali, Umair Tariq

1. HONDA ATLAS
HONDA ATLAS CARS PAKISTAN LIMITED

2. Group Members
• Imtiaz Ahmad BSME01113115
• Faran Tariq BSME01113053
• Umair Tariq BSME01113126
• Irfan Ali BSME01113098

3. CONTANTS
• History
• Organization Type
• Organization Structure
• Departments in HACPL
• Inventory of HACPL
• Supplier Selection
• Distributers

4. History of the Company
• Honda Atlas Cars(Pakistan) Ltd. is a joint venture between Honda
Motor Company Ltd., Japan & Atlas Group of Companies, Pakistan
signed on August 5, 1993.
• Collaborations was done for the development of parts and systems for
manufacture of Honda Cars in Pakistan.
• Pakistani and Japanese cultures have blended exceptionally well to
form a professional team of dedicated specialists.
• HACPL keeping its promise to come up to the customer's expectations
and to give them money's worth

5. CAPACITY, PRODUCTION & EMPLOYMENT
Year ending March: 2014
Honda Atlas Cars have
• Capacity
• 60000 cars/annum
• Production
• 30,464 cars/annum
• Employees (2014)
• 1,230

7. MANAGEMENT STYLE
• The style of the management in Honda Atlas is consultative type.
• Employees are allow to give suggestions, but the final decision making
by the top management.
• Motivation through rewards is practiced
• Control is primarily exercised by the top management but some
sharing of responsibilities at middle and lower level.

8. MANAGEMENT STYLE
• Honda Atlas Cars Pakistan limited alwayes trying to implement
Japanese System of Management
• HACPL give’s a lot of incentives to their employees
• Every Employee got a Honda car after 8year of working experience at
HACPL
• Free Hospital Facility to their employee and their family
• Bonuses are given to the employee after job evaluation

9. VISSION STATEMENT OF HONDA ATLAS
• “Striving to be a Company that society
wants to exist by sharing joys with
people throughout the world.
• Creating products that maximize the
joy of customers, with speed,
affordability and low CO2”

10. COMPETITORS OF HONDA ATLAS
• There are two types of competitors if Honda atlas
1: Direct Competitors
Include Toyota, Pak Suzuki, BMW Pakistan, Nissan Pakistan etc
2: Indirect Competitors
Suzuki motor cycle, Pak hero, Yamaha, Eagle etc

11. ORGANIZATION STRUCTURE

14. ORGANIZATION TYPE
• Joint Venture Organization b/w Atlas Group and Honda Motor
Company, Japan.
• The company is listed on Karachi, Lahore and Islamabad Stock
Exchanges.
• The market share of Honda Atlas has shrunk to 31% in year 2013.

15. PLANT LOCATION
FACILITIES OF PLANT LOCATION

16. Favorable Labor Climate
A large number of industrial units are operating here and this along
with the presence of many technical training institutions have
contributed towards the provision of abundant skilled labor.
Proximity To Market
• HACPL has a network of 14 dealers. Out of these, 7 dealers are
located within a radius of 400 km from the factory.
• HACPL has an edge over Indus company ( the manufacturer of
Toyota) in this regard.

17. Infrastructure
• The place where factory of HACPL is located, is rapidly becoming an
industrial zone.
• Electricity, telephone, etc are also easily available.
• Honda Atlas Cars (Pakistan ) Limited, tries to reduce the
transportation cost through the following ways:
-HACPL prefer that vendor who supplies material at the HACPL's
destination (plant) while remaining in suitable price and quality
ranges.
-HACPL charges Ex-factory rate for its product from customers.
The customers have to bear the transportation cost from plant to the
respective dealer of their city.

18. Faran Tariq
Plant layout
Department in Honda Atlas Cars

19. PLANT LAYOUT

20. DEPARTMENTS IN HACPL
• Human resource
• Finance
• Maintenance
• Vender procurement
• Production
• Information technology
• Marketing

21. HUMAN RESOURCE DEPARTMENT
This department has three sections
• Human resource
• Administration
• Industrial relations

22. HUMAN RESOURCES
This section performs following functions
• Recruitment & selection of employees
• Training & development of employees
• Succession planning of employees

23. RECRUITMENT & SELECTION OF EMPLOYEES
• In HACPL employees are selected very carefully
• Ad is posted in Newspaper or on HACPL Website.
• Than HR department conduct an interview of every candidate who
apply for the job.
• After selection from the interview HR Department also conduct a test
of the candidate called psychology test and this test is about 30min
long. Reason behind this test is to check that how much a candidate
can bear pressure on himself.

24. TRAINING & DEVELOPMENT OF EMPLOYEES
• To enhance and continuously update each member’s capabilities and
educate them job rotation system is used.
• A heavy emphasis is placed to provide opportunities in specialized
courses arrange by the company. The objective is the same as that of
job rotation i,.e expanding the skill and the knowledge of the
employees.

25. ADMINISTRATION
This section performs following functions
• Facilitation of company guests and executives
• Employees’ Mess management
• Utilities administration
• Miscellaneous administrative activities

26. INDUSTRIAL RELATIONS
This section performs following functions
• To build a healthy cooperation between management and workers.
• Labor management
• The higher and Fire Policy
• Legal rights of Employees under labors act.

27. FINANCE
Atlas Honda has a well established finance department. It is totally
computerized .it has its own system which is prepared by IT department.
Finance department has further following sections.
• Finance
• General ledger
• Costing
• Taxation
• Sales
• Payables
• Payroll

28. FINANCE
This section deals with the
Banking matters
Fund management
Import accounting.
COSTING
It is an important section of finance department, which deals with all
costing matters including all material, labor, and overhead costs.
TAXATION
It deals with all tax and custom duty related affairs.

29. PAYABLES
This section deals with the following activities.
Vender payables
Insurance payables
Tax payables
Other payable
PAYROLLS
This section controls the salary system of the organization. All the system is
computerized. First of all the attendance of all employees is recorded and at
the end of the month salary of all employees are paid after all deductions*
* Tax deductions, absenteeism deductions and all other deductions

30. GENERAL LEDGER
Finally all the transactions are recorded in general ledgers. General
ledger for each account is maintained separately. There is a computerized
system, which then produce different statements.

33. HEALTH, SAFETY & SECURITY
• The health and safety of employees remains one of the top priorities.
The effective management of health and safety hazards protects
employees from harm and ensures that business complies with
regulatory and legal standards.
• To ensure the above, the Company has established an Environment,
Health, Safety and Security (EHS&S) Committee, which meets twice a
year and they are presented with relevant considerations for ensuring
healthy, safe and secure workplace.

34. QUALITY MANAGEMENT AND IMPROVEMENT
•Develop and maintain supplier listings.
•Develop the Supplier Performance Criteria, assess supplier performance
and send feedback to the key suppliers for continual improvement.
•Manage the Customer Complaints and take corrective/preventive action
accordingly .
•Evaluation of painted, and Welded parts according to Honda
Engineering Standards.
•Calibration of the Tools and Equipment of the plant.
• Management of Testing and Calibration Lab activities.

35. Irfan Ali
vendor vendor procurement
production department
IT Department
Maintenance Department

36. VENDOR PROCUREMENT DEPARTMENT
At present, 160 vendors are working with the company. This
department performs following 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.

37. VENDOR PROCUREMENT DEPARTMENT
• This department also deals with the CKD (complete knock down).
• This department performs VIP (vendor improvement program). Under
this program, the department representatives go to the vendors and
train them for new methods to produce better quality at reasonable
price.

38. PRODUCTION DEPARTMENT
• Four main products are being manufactured in HACPL in a continuous
manufacturing method. And these are given below
• Honda City
• Honda Civic
• Honda Accord
• Honda CVR

39. HONDA CITY
Honda City i-VTEC Specifications
Seating capacity (person) 5
No of Doors 4
No of Cylinders (cylinder) 4
Fuel Type Petrol
Front Brakes Disc
Rear Brakes Drum

40. HONDA ACCORD
Accord 2.4 Vti L Specifications
Seating capacity (person) 5
No of Doors 4
No of Cylinders (cylinder) 4
Fuel Type Petrol
Front Brakes Ventilated Disc
Rear Brakes Drums in Disc

41. HONDA CIVIC
Honda Civic i-VTEC Specifications
Seating capacity (person) 5
No of Doors 4
No of Cylinders (cylinder) water cooled in line 4 cylinder
Fuel Type Petrol
Front Brakes Disc
Rear Brakes Disc

42. HONDA CR-V
Honda CR-V 2.4 Litre Specifications
Seating capacity (person) 5
No of Doors 4
No of Cylinders (cylinder) i-VTEC DOHC, in-line 4 cylinder
Fuel Type Petrol
Front Brakes Ventilated Discs
Rear Brakes Solid Discs

43. PRODUCTION DEPARTMENT
It is very important department as it produces the main product of the
company, which will eventually generate revenue. The production
department has twelve different shops. Each shop is responsible for
different production functions. These shops include
• Raw material shop
• Cutting shop
• Press shop
• Dying shop
• Welding shop

44. PRODUCTION DEPARTMENT
• CKD shop
• Switch assembly shop
• Tire shop
• Engine shop
• Washing shop
• Final assembling shop
• Inventory shop

45. MACHINARY USED IN HACPL
A brief list of machinery used in HACPL is given below
• Boilers
• Compressors
• Water treatment plant
• Ovens (for backing the body of cars)
• Spot welding guns.
• Two-post lifts
• G-SWAT/ B-S / S Side Slip / Shower testers

46. PRODUCTION DEPARTMENT
• Currently the plant has the capacity of 105 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 was 15 cars per day at the factory. This shows that the plant is being
underutilized. There may be several reasons for this under-utilization
such as weak economic condition of the country, decrease in the
purchasing power of potential customers, et cetera

47. INFORMATION TECHNOLOGY DEPARTMENT
• Atlas Honda has a sophisticated IT system. All the departments are
linked through network. Each and every department is computerized.
This computerization has reduced the burdens on employees.
Particularly the employees of finance department have different soft
wares to support their work.
• All these soft wares have been developed by company’s own IT
department. Mostly soft wares are developed in-house and in some
special cases outsourcing is also being used.

48. MAINTENANCE
• This department is responsible for all the maintenance of the whole
factory, offices and even the houses of top management. In order to
provide effective, efficient and timely maintenance this department has
two type of information.
• It has Machine wise spare parts report
• Machine and equipment list
• Seventeen employees are there in this department. Three are engineers
and others are workers.

49. MAINTENANCE
It provides two types of maintenance.
• Corrective/ Breakdown maintenance
• Preventive maintenance

50. • CORRECTIVE/BREAKDOWN MAINTENANCE
• The same department also carries out Emergency/breakdowns of
machines & equipment's and plant maintenance work. If any of the above
problems occur then the concerned department sends a Work Request to
this department, then this department resolves the problems according to
the Work Request.
• PREVENTIVE MAINTENANCE
• In this maintenance system department tends to provide and follows a
comprehensive preventive maintenance program. According to this
program the department set a sequence of maintenance activities for all
the machines of different production shops on continuous basis.

51. Umair Tariq
Marketing Department
Material Handling
Inventory
Safety Stock

52. MARKETING DEPARTMENT
SALES DEPARTMENT
• It is an important division of marketing department. It is the profit center of the
company. It deals with three types of sales.
INSTITUTIONAL SALE
• The company provides the direct sale to the institutions. Company provides the cars
to following institutions.
• Police departments
• CSD (canteen store department)
• TCS (technology communication supplies)
• Pesticide companies
• Many others

53. MARKETING DEPARTMENT
INDIVIDUAL SALE
• This is the usual sale to the individuals. This usually follows the
following path.
• Company Dealer Customer
EXPORTS
• Currently Honda Atlas have no exports.

54. MARKETING DEPARTMENT
• Marketing department is divided into three parts on behalf of its
functions.
• Sale
• Service
• Spare parts
• the company has developed twenty one 3S dealers (Sales, Service and
Spare Parts) twenty 2S dealers (Service and Spare Parts) and six 1S
dealers (Spare Parts) network in all major cities of Pakistan.

55. MATERIAL HANDLING
• Material handling equipment's
• Lifts
• Hoists and Cranes
• Trucks and trolleys
• Lift Trucks

56. INVENTORY
Inventory is a stock of any things held to meet future demand. Inventory
is created when the rate of receipts exceeds the rate of disbursements.
It is depleted when disbursement exceeds receipts.
There are three types of inventory:
Raw material inventory
W.I.P. inventory
Finished goods inventory.

57. INVENTORY OF HONDA ATLAS
The basic objective of any firm is to minimize total inventory cost
(ordering & carrying). The same is the case in Honda Atlas Cars
(Pakistan) Limited. In HACPL, the whole inventory system is
computerized. Following are the advantages of this computerized
system.
 Updating records.
 Providing management reports.
 Automating the recording process.
 Re-computing decision parameters.

58. SAFETY STOCK
HACPL maintains a safety stock of 2 to 3 months. The reason for
maintaining a safety stock is as follow:
• To protect against shortage that occur due to suppliers.
• To protect smooth and continuous operations.
In HACPL, the inventory is held in the following forms:-
• Inventory of imported parts.
• Inventory of local parts.
In order to avoid stock out, they have more safety stock of imported
parts as compared to that of local parts.

59. SAFETY STOCK
• Shortage Of Inputs
There are special warehouse for the purpose. Both imported and local parts
are stored here.
• Storage Of Output (Cars)
There is no proper warehouse for parking of cars moving out of
assembly line. A place has been assigned for this purpose but there is
no roof over it.

60. SUPPLIER SELECTION
HACPL prefer those suppliers who fulfill the following requirements:
• Provide best quality material at low cost.
• Shorter Lead Times
• Provide material to production plant of HACPL. (i.e. provide material
at destination).
• On time delivery
These are the reasons which forces HACPL to go for local contracting.

61. DISTRIBUTORS
• To store the finished products, (Honda Civic & Honda City), HACPL
uses both FORWARD BACKWARD PLACEMENT.
• HACPL has a country-wise network of Sales Dealers who are actively
engaged in promoting the image of HACPL and its cars.