Naba Hussain Indus Motor Company Limited Internship Report PDF

Internship Report-Indus Motor Company
INDUS MOTOR COMPANY LIMITED
IMC Supply Chain at a Glance
Submitted By:
Naba Hussain
Management Sciences
NED University of Engineering and Technology
Page | 1
Acknowledgement
In preparing and finishing this internship report. I acknowledged the encouragement and assistance given by
number of people during my internship. I am grateful to Sir Muhammad Sajid to give me this wonderful
opportunity to complete my internship at Indus Motor Company.
I would like to express my heartiest gratitude to my mentor Rohail Aftab Siddiqui, Maintenance team;
special thanks to Fahad Iftikhar san, Qambar Rizvi san, Anosha Irshad san, Waseem Ahmed san, Saad shah
san and Musaab Arif san for their moral support; PAD team; special thanks to Bilal Ali Khan san, Hasnain
Abbas san and Sheharyar sheikh san for their kind support; PC&L team, Teams of Press, Weld, Paint and
Assembly shop for providing me detailed information, feedback and advice in preparation of this report.
During the internship, I visited various departments of IMC where I collected the necessary knowledge of
operation of these departments.
It is my radiant sentiment to place on record my best regards, deepest sense of gratitude to the head of
those departments for their careful and precious guidance which were extremely valuable for my study both
theoretically and practically.
I perceive this opportunity as a big milestone in my career development. I will strive to use gained skills and
knowledge in the best possible way, and I will continue to work in order to attain desired career objectives.
NABA HUSSAIN
NEDUET’22
Page | 2
Company’s Profile
Indus Motor Company
Indus Motor Company, incorporated in 1989, is a joint venture of House of

Habib, Toyota Motor Corporation and Toyota Tsusho Corporation of
Japan. The Company manufactures and markets Toyota brand vehicles in
Pakistan. These include several variants of the flagship ‘Corolla’ in the
passenger car segment, ‘Hilux’ in the light commercial vehicle segment
and ‘Fortuner’ in Sports Utility Vehicle segment. In the beginning IMC used
to manufacture only 20 cars per day which has now increased to 268 units
per day. IMC has sold more than 875,000 CBU/CKD vehicles in last 29
years.
Page | 3
CONTENT Page. No
Production Administration; Production planning and Production 5
Control
 Basic Material
 Getsudo
 IMC Cycle
 Steel Sheets
 Direct Consumable
 Indirect Consumable
 Order Cycle
Logistics 13
 Material Flow of Logistics
 Warehouse Management
 Line Site Management
 CKD Flow
 Payment Terms
Production Department 18
Press Shop
 Press Shop Operations
 Press Shop Machines
 Manpower Layout in Press Shops
Weld Shop
 Man and Machine
 Just In Time
 Underbody Construction Track
 Final Inspection
Paint Shop
 Paint Shop Layout
 Paint Shop Operations
Assembly
 Trim Line
 Chassis Line
 Final Line
 NCL
Quality Control Department 30
Quality Assurance
 Hands on Job
 Operational Checks
 Under the Spotlight
CBU Yard 31
Page | 4
Production Administration; Production Planning and

Production Control Department
Purpose:
The purpose of this department is production planning and capacity planning of the plant.
Function:
 The basic function of this department is project monitoring, capacity planning of the plant,
ordering of material, inspection of shortage.
 To make monthly rundown on the basis of discussion done in production meeting.
 To make production plan on the basis of CKD order.
The department is following (N-2) (N-4) (N) cycles for ordering the raw material. Material is being
ordered two or four months prior to dispatch from the global suppliers.
 They prepare plan on the basis of market demand and availability of material.
Basic Material Required in Production of a Vehicle
IMC logic
PAMS logic
Production
requirement
Production
requirement
KEY:
JSP= JAPAN SOURCE PART
MSP= MULTI SOURCE PART
VI= VENDOR TO IMC
The above figure shows the parts that are needed to produce a vehicle and in which cycle we
ordered them and on what basis.
Page | 5
MSP is multi source part which is imported from Thailand and Singapore. JSP is Japan source part
which is imported from Japan. These are the kits that are imported in lot form.
Steel sheets are imported from Japan and Thailand on the basis of production requirement.
Part by Part (PxP) items are imported from KUO Taiwan, TLI & TAP Philippines, TMT Thailand,
TMI Indonesia, and UMWT Singapore. These are the materials that are needed to fulfill local
aspects of IMC. For e.g.; painted smart entry door handles are imported that are used in corolla 1.8
because these handles can’t be painted in IMC.
Direct consumable are ordered in N-4, N-2 and N cycles on the basis of production requirement.
There is no fixed standard for the ordering of DC due to the reason that their usage varies
depending upon the operating conditions. DC is either shipped by sea or plane depending upon the
shelf life of the items.
IMC logic:
According to IMC after production, availability of stock for hot moving variant should be available
for 7 days and for slow moving variant stock should be of 3 days.
PAM’s logic:
PAMS create a link between supplier and importer to parts needed for N-month production
incorporating shipment lead time, Exporter working days, IMC working days, Exporter capacity and
long holidays. IMC operates manually due to unavailability of this system, because this is only
applicable for part by part.
Page | 6
Getsudo (ordering month) (N-2)
Ordering Packaging Production
N-2 cycle illustrate the production month that occurs two months after
the order is being made. It works in a way that if IMC has to produce in month of February so it has to
order in December, packing proceed in January and production will start in February.
The above figure shows the detailed information of the ordering schedule.
D-18 is the first production day of Japan that is 18 days before months end, where Kiehen that is
the special order request can be done for the previous getsudo.
D-17 maximum capacity guide meeting is observed in which IMC discuss the production capacity,
production days for the smooth flow of production
D-14 the GWSS that is the working sheet is circulated to different parts as mentioned. GWSS is a
working sheet in which IMC placed order then this order runs into SAP which will be send to all
suppliers. On D-14 IMC place 6 months Lots tentative varaint wise order.
D-14T is noted as half production day or No production day which is observed as to balance
production capacity.
Page | 7
TDEM- 1st Kodomo

D-16 PC D-15
TMAP-
MS D-9 D-11 D-14
TMC
D-10
D-17
Pure request
IMC D-17
Key:
D-17 TDEM= Toyota Daihatsu Engineering
Manufacturers
TMC= Toyota machinery corporation
Sales PC TMAP= Toyota Machinery Asia Pacific
Marketing and Sales
Figure 1: Getsudo Cycle
IMC submits the pure request to TMAP-MS i.e Toyota Machinery Asia Pacific Marketing and Sales
that forwarded Pure request of all asia pacific countries including IMC to TDEM-PC which makes 1st
kodomo that is vehicle allocation plan that further transferred to TMC , TMC on the basis of
capacity of plant makes further plan which is further transferred to TMAP. Due to low capacity of
plant IMC emphasized on to take a full order request on D-11 which further approved by TDEM. But
before approching to TDEM, IMC directly cordinate with TMC for approval.
Steel Sheets
The science behind the steel sheet is the important aspect to know before producing a vehicle.
Ordering cycle of the steel sheet is generally works on N-7.
N-5 N-2
Mill(TH
AILAND
IMC Coil to
TTC ) coil TTC TTSC Packing IMC
order sheets
product
ion
Figure 2: Flow Chart of Steel Sheets Ordering
TTSC= Toyota tshuso steel

cutting center
TTC= Toyota tshuso Corporation
Page | 8
Direct consumable
Imports
1. Selears
2. Wax
3. Oils
4. Coolents
5. Lubricant
6. Grease
7. Engine oil
8. Breakeoil
9. Primers
local
1. Paints and chemicals
Commercial Ordering
Sealers and chemicals that are localy available , Product Development deparment of IMC negotiate
the price and ensure the quality of local products for the further use.
Monthly Order
Plotting bill of material that is the total material required to form complete vehical against
production plan, monthly requirenment of direct consumable is obtained
Ordering Cycle and Vendors
Direct Paints and

Consumable Chemicals
(N,N-3)
TTC
S.White, AT Black, Grey, Silver,
N-4 KANSAI
Brown, Blue
Jx Nippon
N-2 AKZOnobel Chemicals, NATO green, Sand Beige
Sunstar
N-2 NIPPON
Chemicals
TMC
N-5 (SEA) Berger
N-3 (AIR) Dark teal, Dorado Gold
Figure 3: Ordering Cycles & Vendors of Direct Consumable
Page | 9
Indirect Consumable
Indirect
Consumable
Production
Need based Reorder point Blanket order
Requirnment
Figure 4: Flow Chart of Indirect Consumable
Blanket Order
Blanket order is the purchase order is the order made by the customer from the supplier which
contain multiple delivery dates over a period of time. It is usefeul to save cost on the items that are
needed to use in a long term.
Reorder Point
Reorder point is the specific level at which stock needs to be replenshed. If the purchasing process
and supplier fulfillment work as planned, the reorder point should result in the replenishment
inventory arriving just as the last of the on-hand inventory is used up.
Figure 5: Reorder Point
The reorder point set between the maximum and minimum point of inventory which varies on per
product basis. When the quantity reaches to the set point where the order need to be placed , the
system (SAP) generate PR which is further send to supplier and order is placed. The quantity drops
till the minimum but not be zero and the hence the shipment is arrived.
Page | 10
Order Cycle
Figure 6: Order Cycle
 Order sheet has been made to know what material IMC needed in what quantity.
 PFI(Perfoma Invoice) is made by sypplier to provide the complete knowledge about the
quantity he could supply
 PO is purchase order that is made in system to store all information that has been
mentioned in PFI.
 Finance department of IMC issued LC to the bank which assures that payment is going to be
released when order is received.
 Talex is verification of bank which provide communication to supplier that IMC has made
the payment
 Shipping invoice is now forwaded to importer to know about shipping details
 Inbound is made to inform the logistics that shipment is going to be arrived on certain date.
 calculation of duties has been made which then paid to receive the order
 After port process order received by the IMC.
Page | 11
Logistics
Purpose
To maintain smooth flow of material logistics need to plan, implement and evaluate the effective
forward, and reverse flow and storage of goods, services, and related information between the
point of origin and point of consumption to meet customer's requirement. The proper handling of
material and to maintain the balance between the overstocking and shortage of material.
Material Flow of Logistics
Figure 7: Material Flow of Inbound & Outbound Logistics
The above material flow of both inbound and outbound logistics and the supply of material till the
production line are evaluated in the material flow. Toyota Pakistan focuses on JIT that is just in time
which is hard to maintain if some abnormalities occur. There are total 50 deliveries in single shift in
IMC on average. Local deliveries are scheduled according to the part that the supplier is carrying.
Like supply of seats have 32 frequencies in a day.
Page | 12
Warehouse Management
Warehouse is a place where the inventory is stored. IMC operates with two warehouses first is in
vicinity of IMC while other is Perani warehouse where the major imports is devane. After the CCR
call which is about 3 days before the production the material is transferred to warehouse one that
is in IMC. The inventory received by the organization in warehouse one is from local suppliers.
Warehouse one also deals with the supply of raw material to production line on reservation made
by CCR.
Material is issued systematically as well as physically. Material is placed on racks in warehouse one.
Each rack is assigned with different name. A material placement chart is pasted on each rack to
ease the process of identifying that where the required material is placed. First In First out (FIFO)
process is practiced in warehouse.
SAP is the warehouse management system that is used to maintain the proper check and balance of
the inventory that is in the either in warehouse or on line site.
Proper PC racks and dollies with proper tags are managed for the proper handling of material in the
warehouse.
Figure 8: Corolla/Yaris PC Racks
Page | 13
Special parts control room and inspection area has PC racks for the storage of parts
Figure 9: Special Parts Control Room
PxP PC racks are at front of the entrance from the gate of warehouse, inventory is being stored on
the racks which can be further improvised.
Figure 10: Part by Part PC Racks
Page | 14
Line site Management

To create a balance between overflow of material and shortage of part on the production line is the
major challenge for the logistics to handle. For this purpose different planning has been done by
using 5s approach that is (Seiri, Seiton, Seiso, Seiketsu, Shitsuke in Japanese terminology Sort, Set in
Order, Shine, Standardize and Sustain) but the difficult part is to sustain what is being evaluated.
On production line PC racks , returnable bins and dollies are used to carry parts, since the
production is heijunka so the exclusive parts that is the parts used in some variants are carried on
the CCR call that is central control room, the lots are in 10x10 form while the common parts are
carried on the daily production plan basis.
Figure 11: Racks at Final Line
Recommendations
Flexibility in the racks can be added to manage the flow of materials and to avoid the overflow of
parts on the line site which is the ultimate goal of logistics. Racks can be design in a way to reduce
the manpower and create easiness in the workflow
By using Jidoka approach, computerized system can be installed on line which creates easiness in
the flow of parts and doesn’t affect the heijunka production.
Page | 15
CKD flow
Figure 12: CKD Flow Chart
The above flow chart illustrate the shipment flow, after placement of order and shipment of CKD
exporter send shipping document to the clearance agent and insurance company for the insurance
in parallel the goods declaration process is being done that is the document in which detailed
information about goods that is being imported to the country is noted and the custom authorities
can control over the goods. CPC is the custom procedure code that is used to know about how
shipment is processed and ultimately if, how, when and from whom duties and taxes are collected.
After the GD, clearance agent sent request for the pay order after the payment terms the custom
house appraisement is being done (if the examination report matches the declaration by importer),
Port process in which arrangement of transport and payment of wharfage is done and CKD
transported to the plant
Payment terms:
Payment is done through LC through bank channels
Letter of credit (LC): letter of credit is a document that is issued by the bank assures the
buyer's payment to the sellers. It ensures the timely and full payment to the seller.
There are two types of LC
 LC @ sight: LC at sight is a letter of credit (LC) that is payable immediately (within five
to ten days) after the seller meets the requirements of the letter of credit.
 LC @ usance: LC at usance is the letter of credit that is payable when the conforming
documents are submitted by the seller.
Page | 16
Production
Press shop:
In order to create Corolla and Yaris, process starts in press shop. The basic function of press shop is
to press the steel sheets in order to form the desired shapes that are further welded to form a basic
structure. The process starts from the arrival of order to form the molds and storage.
Press Shop Operations
Die
maintenance
TPS
Batch
production
Quality
Check
Repair
Figure 13: Press Shop Operations
Die maintenance:
Maintenance of dice is under the duty of Press shop. To maintain the quick check on wear and tear
of die to ensure the quality and sustainability of machine.
TPS:
TPS controls the container devanning that is offloading and receiving of supplies in Press shop,
Inventory management by maintaining inventory of desired products to maintain the flow of
material that is required in Weld shop.
Batch Production:
25 parts of Corolla and 28 parts of Yaris is stamping in press shop which follows the certain pattern
of production provided by PAD-PC according to the daily production plan. The parts of hot moving
variant are produced in ratio of 2:1 as slow moving variant.
Page | 17
Quality Check:
Quality check of finished parts of the output is being done manually as well as by using Vectron
which is further transported to the warehouse.
Repair:
Defects that spotted after production is being repaired in the press shop.
Press Machines
Before the steel is shaped it has to be prepared, to get smooth particle free sheets it has to undergo
the washing process then passed into four press shop that is draw also called blanking which is used
to draw the desire shape then trim which is used to cut the sheet and then flanging and piercing
under different dies to get the desire shape to form the body. There are total 62 dies for Corolla
and 66 dies for Yaris. Some dies are used for stamping both parts of a vehicle for example door it
means that single die is used to stamp the both right and left hand side door this type of die is
called family die.
Draw Trim Piercing Flanging
Figure 14: Flow of Press Machines
Figure 15: Die
Page | 18
Figure 16: P1 Press
Figure 17: P3 Press
Figure 18: Quality Inspection
Page | 19
Man Power Layout in Press shop
Figure 19: Man Power Layout
The above layout shows the distribution of manpower in press shop in a single shift. The press P1 is
used for blanking that is mechanical press, the loading is manual while offloading is automated that
is pneumatic the first two press has force of 2000 ton while the last two press has 1000 ton force
for stamping. Washing machine is used to get smooth and particle free sheets. The turnover
machine is used to change the symmetry of sheets for further used in blanking process. The sheets
are turned to 180 degree. For example the sheets used for making side member undergo the
turnover process.
Page | 20
Weld shop
In the weld shop, the pressed metal sheets are welded together to form a body shell. By Toyota
ordering system each body shell has their own identity tag that will remain with it throughout the
whole production process.
Figure 20: Weld Shop
Man and Machine

The process appears so smooth but it is so complex, it requires hundreds of skilled workers to
complete this process as this is manual process. Spot welding has been done where spots are
designed but still this process requires so much efficiency. Skilled worker bring their combine effort
to weld steel sheets to form the body shell.
Figure 21: Spot Welding
Page | 21
Just in Time
In the weld shop there are many sub-assemblies that are connected to the final line where the
whole bodyshell is created to make a car. By using just in time it is difficult to maintain the exact
flow of parts on the main line in exact time.
Construction of Underbody track

Each car requires the separate welding machines and each of these connections serves of different
purpose. Each weld is differently design using different thicknesses, temperatures and techniques
some weld is used for welding side members while other for doors. It takes more than 3-4 minutes
to weld the side member with the cars underbody. At the end of the shell body line the bonnet and
boot are attached to the car by hand.
Figure 22: Underbody Track
Page | 22
Final Inspection
Both people and machine is backed by the quality assurance team to inspect the machine and parts
for the reduction of human and machine error. The team makes a final visual inspection, ensuring
that the bodywork is perfectly joined and that the panels are smooth. Then the body lifted on to a
conveyor that takes it into the Paint Shop.
Figure 23: Final Inspection
Page | 23
Paint Shop
Paint shop in Toyota Pakistan keeping it important to create dust free and clean environment for
the effective application of paint. It took 14 to 15 hours to treat Toyota vehicle in paint shop. Cars
directly entering after spot welding into the paint shop, the paint shop in Toyota Pakistan are
automated while some area still has worker for certain jobs.
Paint Shop Layout
L/T 14 to 15 hours
L/T 45 mins
Figure 24: Paint Shop Layout
PTD Process
Body arrives in paint shop after few minutes from the welding here the body undergoes to PTD
process that is pretreatment electrode deposition that is body undergoes to the process of
electrolysis for the prevention of corrosion and rusting which is of 45 minutes.
Sealer Application
Sealer application is the second stage, where sealer is applied on the panel joints of the two welded
metal sheets to prevent water and moisture to enter, after sealer application body undergoes to
baking. After baking body is now ready for first primer application. Since the welding process is
done manually so it is needed, to have 100% surety.
Final Coat
Primer application is the last stage. Top coat application of paint is by robots, total 15 robots are
installed in paint shop in which 9 robots are used for clear coat application while 6 robots are
installed for base coat application while the inner body is painted manually.
Page | 24
Final Inspection
Two quality inspections is done before body moves into the assembly, the minor defects repair at
the moment while the intensive repair takes time and then body stay back in paint shop
Wax Booth & Blackout tape
Application of wax on different parts of vehicles and blackout tape is applied on the wheel arches
and doors
Since the production is Heijunka so the lead time remain same no matter what car is painted
in the paint shop but vehicles having intensive repair in the paint shop causes the problem
in the assembly line.
Figure 25: Paint Shop
Page | 25
Assembly
The transformation begins; assembly shop is the heart of IMC. Two different production lines are
for passenger cars and commercial cars are here. For corolla and Yaris there are three lines in total
that is trim, chassis and final line while for Hilux there are total three lines as well but this is trim,
frame and final that is followed by QG that is quality gate for inspection at last in both.3000 parts
on an average is fitted into the cars during assembly process. There are total 35 stations in
Assembly including quality gate
Trim line
There are total 43 processes on trim line for Corolla and Yaris where the outer body part is being
ready. On trim line there is supply of common as well as exclusive parts that is being placed on
racks with proper tags for identification of parts. Exclusive parts that are only fitted in some
variants are supplied on CCR call. There are total 43 workers working on the trim line.
Figure 26: Trim Line Station T-11 LH
Page | 26
Chassis Line
On chassis line there are 36 total processes for Corolla and Yaris here most of the underbody parts
or mechanical components are being fitted that is engine. Engine is transferred on CCR call for the
upcoming variant on chassis line. The front suspension, brakes and gearbox are sub-assembled in a
separate area and added to the car after the engine. Finally, the car is filled with fuel and coolant
liquids. The Takt time for Yaris and Corolla is 4.2 min
Final Line
There are total 24 process on final line where the all cosmetic part are being fitted , on final station
one tires are being fitted then as body moves forward different parts are fitted to add the value of
beauty from customer point of view. There are total 24 people working on final line.
Figure 27: Final Line Corolla/Yaris
Page | 27
New Commercial Line (NCL)

The commercial variants are assembled in the NCL. After the body comes out of the paint shop is
transferred to the NCL. In NCL there are total three lines that is trim frame and final line. This line is
M-shaped. The process on trim and frame is done in parallel. The takt time of the line 17.04 mins.
The frame is lifted by the scissor lifter that is then fitted onto the body which is further transferred
to the final line for the different processes
Figure 28: NCL Final Line
In the above shown picture the body is at the starting point of final line. The underbody is ready
which is transferred from the trim line and now the frame has to be adjusted. There are multiple
processes that have to be done on the final line.
Page | 28
Figure 29: NCL Final Line
The frame is being lifted by the scissor lifter which is then adjusted manually. Hilux comes in two
parts while the fortuner is in single which is adjusted and further transferred to the final station for
different process. In the last quality inspection is being done in QG for the reduction of errors
Page | 29
Quality Assurance
At this point, each vehicle is almost at the end of its production journey. The journey started with
the pressing of metal sheets is converted in to a high-quality car worthy of a five-year warranty. But
still there are multiple work that has to be done which is really important. Every shop have their
own quality inspection area to minimize the defects and error but if any error has been missed so it
is the final check now.
Hands on the Job

As the car arrives from the assembly, the quality control department has started to work on each
and every vehicle before it passes to the factory. The team deals with the body panel and panel
gaps to check for imperfections. It is hard to find the fault because body has already passed through
the different quality checks. It took almost time for the quality check.
Operational checks
After the interior and exterior quality checks engine has started. The engine started multiple times
to check the quality then underbody is checked and further the bolts and fixings are double-
checked for security.
Under the Spot light

It is the last stop to make sure every vehicle is looking at it best. Now each and every vehicle hit the
light tunnel for the final check that is paint is up to mark and either are there any dents or
scratches. It took almost 72 hours from turning sheet steel and parts into a fully functioning, road-
legal car.
Figure 30: CS Line
Page | 30
CBU Yard
After the vehicles are being ready now parked into the CBU yard from there they are
transferred into the trollers and leave for the showrooms.
Figure 31: CBU Yard
Page | 31

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Internship Report-Indus Motor Company

INDUS MOTOR COMPANY LIMITED

IMC Supply Chain at a Glance

Indus Motor Company

Indus Motor Company, incorporated in 1989, is a joint venture of House of

Production Administration; Production Planning and

Basic Material Required in Production of a Vehicle

Getsudo (ordering month) (N-2)

Ordering Packaging Production

TDEM- 1st Kodomo

Figure 1: Getsudo Cycle

Figure 2: Flow Chart of Steel Sheets Ordering

TTSC= Toyota tshuso steel

Ordering Cycle and Vendors

Direct Paints and

Figure 3: Ordering Cycles & Vendors of Direct Consumable

Figure 4: Flow Chart of Indirect Consumable

Figure 5: Reorder Point

Figure 6: Order Cycle

Material Flow of Logistics

Figure 7: Material Flow of Inbound & Outbound Logistics

Figure 8: Corolla/Yaris PC Racks

Figure 9: Special Parts Control Room

Figure 10: Part by Part PC Racks

Line site Management

Figure 11: Racks at Final Line

Figure 12: CKD Flow Chart

There are two types of LC

Press Shop Operations

Figure 13: Press Shop Operations

Draw Trim Piercing Flanging

Figure 14: Flow of Press Machines

Figure 15: Die

Figure 16: P1 Press

Figure 17: P3 Press

Figure 18: Quality Inspection

Man Power Layout in Press shop

Figure 19: Man Power Layout

Figure 20: Weld Shop

Man and Machine

Figure 21: Spot Welding

Construction of Underbody track

Figure 22: Underbody Track

Figure 23: Final Inspection

Paint Shop Layout

Figure 24: Paint Shop Layout

Wax Booth & Blackout tape

Figure 25: Paint Shop

Figure 26: Trim Line Station T-11 LH

Figure 27: Final Line Corolla/Yaris

New Commercial Line (NCL)

Figure 28: NCL Final Line

Figure 29: NCL Final Line

Hands on the Job

Under the Spot light

Figure 30: CS Line

Figure 31: CBU Yard

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