Security and JIT

Daewoo is the first and the biggest foreign investment Company with an advanced and organized

transport system in Pakistan. It is the only transport company to have nationwide network with

various international trade links. Being a transport service provider the company owns a large

fleet of buses, Technically Advanced Workshops to maintain the fleet for the safety of the

passengers, State of the Art Terminals, Training Institutes for Drivers and Mechanical Staff.

Daewoo assures its passengers a safe and secure journey. For this purpose a separate Security

Department is working. Effective and efficient drivers hired always. And a bus hostess to serve

passengers with food and refreshments.

Safety and Security:

Some of the security and safety measures followed are:

 Life insurance of each passenger

 A team of skilled guards at all terminals

 Deputation of alert armed guard in the bus.

 Security checking of passengers at boarding time.

 Lost and found department for the security of luggage.

 Movie capturing of all passengers before the departure.

 Before boarding, carry-on baggage of each passenger is checked.

Controlling:

 Daewoo express is much more conscious about their time and their IN and OUT.

 The organization’s plus point is the time conscious and it is very strict in this issue.
 Supply Chain Risks

Few risks that can occur for Daewoo Company are as follows:

 Supplier failure to deliver: because there are few suppliers which are in contract with the

Company.

To overcome this risk Daewoo Company can use multiple suppliers, effective contracts

with penalties, subcontractors on retainer; pre-planning.

 Theft, Vandalism and Terrorism: Daewoo Company can face thefts of luggage, personal

things and Terrorism can also take place in this type of Organization.

To overcome this risk Daewoo company can use Insurance, patent protection; security

measures including RFID and GPS; Diversification.


Risk Reason
High Oil price High oil prices can increase
operational cost, as in the short
run it cannot be passed onto
passengers
New Entrants Increased competition in
transport industry will result in
loss of market share
Expansion Failure to comply with timeline
Projects of new projects will hurt the
brand name and key
performance indicators
Brand Image Day-to day issues that transport
companies are confronted with
may lead to bad brand image
Increase Toll Any increase in toll tax on
Tax and Token highway and motorway or
Value token value will increase
expenses
Government Increase in import duty for
Regulations buses will increase the capex
for the company
Other Risks
Mitigation Factors
Increase in fuel cost is usually passed onto passengers in long run
through an increase in prices of tickets
Daewoo maintains one of the largest fleet of buses and have a strong
geographic foothold in Pakistan therefore it is difficult for any new
entrant to compete with Daewoo, moreover barriers to entry in the
transport industry are quite high due to high capital requirement,
licensing and route permits. Brand loyalty and high standing of
Daewoo amongst passengers also guards against any threat from
competition.
Strong, resilient and competitive organization with a combination of
foreign and local management diversified with vast experience in
transport sector makes Daewoo foremost contender for undertaking
new projects.
Daewoo has maintained high quality of services since its inception.
24/7 support services and state of the art technically maintained
workshops supplemented with experienced management makes sure
that company operates with as few failures as possible. There has not
been a single incident when operations of Daewoo had to stop
following failure in operational activity of the company
Daewoo operates one of the largest fleet of buses in Pakistan covering
a network from Swat till Karachi, an increase in token value and toll
taxes on highway or motorway will have a negative impact on
company’s operation as expenses will increase in the short run, this
can be passed onto passengers in long run resulting in smooth cash
stream for the company.
Daewoo Pakistan has been increasing its footstep across Pakistan with
the addition of new buses. The company should take into consideration
the fact that import duties might increase in future and should keep a
reserve for the unseen event to purchase new buses.
 Maintenance Department

 Mechanical Section

 Quality Assurance Section

Mechanical Section:

 Periodic Maintenance: Rather than reactive maintenance – “Fail and Fix”- Company

more focus on perfective maintenance “Predict and Prevent” maintenance approach. It

normally includes:

1. Docking Service: It is a type of preventive maintenance, in which all the interior

and exterior parts (excluding body repair) of the busses are checked/services

under the observation of workshop in-charge/supervisor.

 Interval: 100,000 km

 No.of Days Required: 4

 No.of Mechanics Inducted: 4

2. Periodic Service: Various items/parts (filters, oil etc.) are replaced after specific

interval/mileage prescribed by the manufacturer. It comprises the following:

 15000 km Service

 30,000 km Service

 50,000 Km Service

 100,000 Km Service
 Engine Shop: Engine overhauling of the buses and LTVs (operated at different sections

of Daewoo Operation) is carried out on need base when any of the following

problems/failures are observed:

 Engine Blow By

 Coolant Pressurized

 Engine Abnormal Sound

 Engine Seized/Block Broken

 Transmission and Differential Repair work: Apart from engine, other major assemblies

are also repaired in mechanic shop. These include:

 Transmission Repair

 Differential Repair

 Electric Shop: Major and costly items/parts are repaired/serviced in electric shop and are

reused in buses. These parts include:

 Alternator Service

 Starter Motor Repair

 Auto Timer

 Speedometer

 AC shop: Major and costly parts are repaired/serviced in AC shop and are reused in

buses. These parts include:

 AC Compressor
  Condenser Motors

 Blower Motors

 Hot and Cold Cabinet

 Ac Unit/Plant Service

 A/V shop: Major and costly parts are repaired/serviced in A/V shop and are reused in

buses. These parts include:

 Selector Switches

 Inverters

 DVR

 LCD

 Preparation of New Amplifier

 Machine shop

 Radiator shop

 Winding shop

Quality Assurance Section

Quality assurance section is meant for 2 basic jobs:

 Quality Repair Work

 Quality of parts being used in the buses

It performs its jobs in following ways:

 Checking of Bus on Arrival and Dispatch from SDR

 New Parts Quality Assurance

 Old Parts Quality Checking

 Road Test of Repaired Vehicle

Conclusion and Recommendations

1. Daewoo is an international brand and through its high quality and exclusive services, it

has gained a good repute in the local transport business. But it has been seen that Daewoo
 Corporation has not lived up to its name as far as the establishment of an extensive

transport network is concerned. Passengers in most areas of Punjab and in all the other

provinces of Pakistan have no access to the Daewoo Bus Services. There is also a great

need for an inter-city transport network of Daewoo in metropolitans such as Karachi,

Rawalpindi and Faisalabad etc.

 This problem can be dealt with by increasing the no. of intercity and intra city routes and

buses as well as increasing the range of transport services.

2. It has recently been observed that following a tremendous growth in the number of

passengers, Daewoo Intra City Bus Service has suffered great over-crowding which has

deteriorated the standard of comfort claimed by the company.

 One probable solution to this problem is again an increase in the no. of transport vehicles

and routes. Moreover, a better handling and management of the present bus routes and

the number of buses can also lead to a more pleasant situation.

3. No advertising campaign has ever been launched to highlight the comparative

superiority of the company over its local competitors. Consequently, a large proportion of

consumers remain unaware of the great facilities afforded by the bus service.

 Therefore, advertisement is a feasible and necessary way for the bus service to attract

passengers who are unfamiliar of the high class and uniquely elegant transportation
experience- offered by Daewoo- and hesitate when spending on the comparatively high

Daewoo bus fare.