MAHNOOR SHAHD ROLL # 59 1

ATLAS HONDA
MAHNOOR SHAHID 59
EMAAN SHAKIL 46
HAFSA HAMEED 58
ALISHBA KHURRAM 56
MAHNOOR SHAHD ROLL # 59 2

Mahnoor Shahid
Roll # 59
TOPIC :
1 HISTORY OF ATLAS HONDA PAKISTAN
2 COMPETITIVE STRATEGY OF ATLAS HONDA PAKISTAN
MAHNOOR SHAHD ROLL # 59 3

 Atlas Honda Limited is a public listed company which was

incorporated on October 16, 1962. It is a joint
collaboration between Honda Motor Company Limited
Japan, the largest and most reputed motorcycle brand in
the world, and Atlas Group, one of Pakistan’s most
HISTORY OF AHL renowned business conglomerates.
PAKISTAN  The Company is considered a pioneer of motorcycle
industry in the country and has been leading two wheeler
market successfully for over 50 years..
MAHNOOR SHAHD ROLL # 59 4

 The annual assembly production capacity of AHL is 1.35

million units, with 150,000 units from the Karachi plant
and 1.2 million units from the Sheikhupura plant
PRODUCTION
 Capability at Karachi (Sindh) which manufactures 300
CAPACITY OF AHL units of CD 70 only and Sheikhupura (Punjab) plants
PAKISTAN which manufactures all four models.
MAHNOOR SHAHD ROLL # 59 5

 With highest quality products, state of the art

manufacturing facilities, largest dealership network &
impeccable after sales service, Atlas Honda Limited is
today considered a benchmark for two wheeler
manufacturing
HISTORY OF AHL
 Atlas Honda has Pakistan's largest in-house
PAKISTAN manufacturing capability at its Karachi and Sheikhupura
plants which include an R&D wing and tool making
facilities through CAD/CAM
MAHNOOR SHAHD ROLL # 59 6

 ATLAS HONDA manufactures four models of

motorcycles

 1: CD 70

PRODUCTS OF  2: CD 100
AHL PAKISTAN

 3: CG 125

 4: CG 125 DELUXE
MAHNOOR SHAHD ROLL # 59 7

 1:Suzuki Motor cycle

 2:Pak Hero
COMPETITORS OF
HONDA ATLAS
 3:Yamaha

 4:Sohrab Motorcycles
MAHNOOR SHAHD ROLL # 59 8

 Competitive priority include top quality, consistent

quality, delivery speed, on time delivery, development
speed, customization, variety and volume flexibility,
COMPETITVE these are the competitive priorities of AHL which make
STRATEGY OF AHL it superior to the rest of the companies in the industries
PAKISTAN by the result of its operations.
MAHNOOR SHAHD ROLL # 59 9

 It is need to be cleared that the element of competitive

priority of AHL is categorized in four broad categories.
 QUALITY
 TOP QUALITY
 CONSISTENT QUALITY
 Quality is different for different customers, quality is
simply defined as the completeness of features, value
1 QUALITY for money, conformance of specification, reputation.

 AHL meet its design and specifications on the

continuous basis to maintain the consistent quality of its
products
 AHL is manufacturing and selling the top quality
motorbikes in the motorbike industry of Pakistan that’s
why AHL has 63% market share in the market
MAHNOOR SHAHD ROLL # 59 10

 Cost feature include manufacturing cost, value added

cost, running cost, service cost and selling price is
included
 AHL operations are in house system in which a efficient
2 COST manufacturing process is undertaken with all new
production and management techniques (JIT and
TQM)and charge the highest price in the market.
MAHNOOR SHAHD ROLL # 59 11

 Time included the delivery time, manufacturing lead time,

due date, frequency of delivery, rate of production of the
entity.
 DELIVERY SPEED
 ON TIME DEIVERY
 DEVELOPMENT SPEED
3 TIME  AHL Karachi based plant produce 300 units of motorcycle
per day. AHL has design its process efficiently to minimize
the manufacturing lead time and fulfill the customers orders
on time .The production example given 300 units for Karachi
plant is the best example of manufacturing speed which is
short and good for the company and this in return help on
time delivery system where demand occur.
MAHNOOR SHAHD ROLL # 59 12

 The AHL production have all the customization, variety

and volume features are included for example the four
different products it produce is one feature of
4 FLEXIBILITY customization, variety and volume in production
process is to support larger volume production and
quickly manage within fluctuating demand
PRODUCT AND PROCESS
STRATEGY
EMAAN SHAKIL
ROLL NO 46
  Product strategy defines
what your product should achieve
PRODUCT
how that supports the organization,
STRATEGY and is brought to life through the product road map.
 QUALITY FOCUS
 Atlas Honda aims to be a company trusted by its
customers for its quality products.

 The Company focuses on quality at every stage,

 from the planning of new products through development,
 manufacturing,
PRODUCT
 distribution
STRATEGY  and sales to after-sales.
 The Company evaluates its products’ performance
and health & safety impacts.
 Information derived is used to develop and
implement effective solutions.
  Customers
“Our Customers are the reason and the source of our
business. It is our joint aim with our dealers to ensure
that the customers enjoy the highest level of
satisfaction from use of Honda motorcycles.”

 Quality
“To ensure that our products and services meet the
PRODUCT set standards of excellence.”

STRATEGY  Local Manufacturing

To be the industry leader in indigenization of
motorcycle parts.

 Technology
To develop and maintain distinct business
advantages through continuous induction of
improved hard and soft technologies.
  Quality Policy
Commitment to provide high quality motorcycles
& parts.
Right work in first attempt and on time.

PRODUCT Maintain and continuously improve quality.

Training of manpower and acquisition of latest
STRATEGY technology.
Safe, clean and healthy environment.
Market leadership and prosperity for all.
  It is the pattern of decisions made in
PROCESS managing processes so that they will achieve
STRATEGY their competitive priorities
 REPETITVE FOCUS
 The Company is committed to offer sustainable mobility
solutions by
 maintaining the quality of products,
ensuring customer safety,
PROCESS  appropriate marketing and providing best after-sales
service.
STRATEGY
 In addition, the Company keeps expanding its sales and
service network across Pakistan.
  To ensure customer satisfaction, the Company takes
dealer training initiatives and encourages
customer feedback.
 Further, Company provides safety training to
customers throughout the year.

 The Company follows Honda’s vision and takes into

PROCESS account health and safety impacts of its products
STRATEGY to ensure safety of customers and other road users.

 Constant monitoring and regular reviews

are carried out on all business aspects and
processes in order to ensure they continue to
comply with the Company’s commitment to
produce quality products.
PROCESS
STRATEGY
Location and Layout Strategy
Hafsa Hameed
Roll no 58
  Atlas Honda have two main
plants in Pakistan:
 One is on Sheikhupura road
and other one is in Karachi.

Location  They manufacture only CD70

in Karachi, while in
Strategy of Sheikhupura Plant, they

Honda Atlas manufacture all of their

models i.e.
CD70,CD100,CD125, and
CD125 Deluxe.
  Sheikhupura plant
26-27 KM, Lahore-
Sheikhupura Road,

Location of the Sheikhupura-39321

Honda Atlas  Karachi plant

Plants F-36, Estate Avenue,

S.I.T.E., Karachi-75730
  Most of the Vendors & Sub the cheapest of the
Contractors are from Lahore motorcycles.
and Sheikhupura, so their
availability counts a lot.
 They have high demand in
Punjab that’s why they
Reasons behind produce more in the plant of
the Plant Sheikhupura road.

Locations  They produce only one model

in Karachi because of the high
demand of that model and
high rates of street crimes and
vehicles snatching incidents.
Many people prefer to have
  Human resources
 Infra Structure
 Industrial Culture
Location  Material Resources
Decisions and  High demand
Key factors  Price
  Industry
 Automotive
 Locations
 In the areas where demand is high as well as the high availability
of vendors

Proximity to  Sheikhupura road is an industrial area. There are many other

auto industries on Sheikhupura road. That’s why due to the
Suppliers and availability of suppliers and raw material at that place Honda
Atlas produces more models in this plant, with the benefit of
Raw Materials low cost.
 Atlas Honda follows Process layout.

They have different sections of different operations

some of which are:
• Casting Plant
• Paint Shop
• HR Department
•
Layout •
Finance & Accounts
IT Department
• Logistics
• Vendor Procurement
• Maintenance
• Store
• QC Department
• Manufacturing Plant
• Assembly Plant
• Engine Plant
Process layout
of Honda Atlas
 • Proper Material Movement
• Space for the Operator
• Space for repair & Maintenance
• Space for temporary storage
• Space for Loading Unloading
• Maximization of the use of workspace
Total productive • All the utilities are provided in the
proper manner.
maintenance • Proper Safety Rules
Application
They
have:
 • Manages the receiving,
stacking & issuance of parts
Stores & materials to the shop.
dept. at • Ensures the provision &
AHL dispatches of required parts
to SKP & KHI plant, spares
Stores performs part division & vendors.
following • Handles the rejections &
damages from all shops
functions: • Handles the scraps & wastes
generated in the factory
 Stores dept. at AHL has been
divided into a number of small
stores according to the type of
material being stored and
functions/services provided by
the store. At AHL, following
handling techniques are used:
 For handling from shop to
shop especially designed
Division of trolleys, and pallets are
used.
Stores  Imported motorcycle
components are received in
steel & wooden cases
&pallets.
 Local vendor parts are
received from receiving
section in standard carton
boxes.
  For in plant material handling,
they have Fork Lifters, Trucks,
Pick-ups etc.
 They have Belt conveyor on their
assembly line which moves
automatically and can be paused if
required.

 They also use suspension

Material conveyors on the assembly line to
bring the chassis from the paint
Handling ED Paint shop onto the assembly
line.
 In their engine division, they use
Idler roller conveyors to forward
the work piece from one machine
to another.
Supply Chain Management at
ATLAS HONDA
 Customer

Customer
Customer Pull
Order
Order
Cycle
C

Dealer

Manufactur-
Supply Chain at -ing Cycle

Atlas Honda Atlas Honda Push

Procure
--ment Assembler
Cycle
Supplier

Auto
Parts
 The supply chain management
at ATLAS HONDA

SAP “System
Applications & Products”

Production Planning

How supply Manufacturing Process

chain works at
ATLAS HONDA? Warehousing

Vendors

Transportation
  Uses Master Production Scheduling (MPS)
 Helps Atlas Honda to anticipate shortage before it
occurs.
SAP “System  With MPS you can easily see what exactly the shortage
Application will appear if we execute the specific production plan.

&Products”  MRP shows, which item should be purchased, in what

quantity and when the order should be placed so that
the required material will arrive just in time.
  Atlas Honda’s total plant capacity is 500,000 units in
Sheikhupura and 105,000 units in Karachi.
 But Honda produces motorbikes according to the
market and customer demand, because of this reason
their plant always operates under capacity.
Production  Atlas Honda is using both push as well as pull system:
Planning  Push system is used before assembling plant
 Pull system is used after they assemble the required
units and supply their motorbikes to their dealers, so
that dealers could fulfill their customer’s demand.
 At Atlas Honda there are total fourteen processes:
 Frame Assembling
 Paint Shop
 Buffing Shop
Manufacturing
 Alternative current generation shop
Process  Drum Gear shift
 Drum Gear shop
 Machine shop
  Fuel cope shop
 Die casting shop
 Engine assembling shop
 Welding shop
Manufacturing
 Ignition coil shop
Process  Switch assembling shop
 Engine machine assembling shop
  Stores dept. at Atlas Honda have been divided into a number of small stores
according to the type of material being stored and functions provided by the
stores.
 Atlas Honda has one major warehouse which is SKP and where they store all the
finished assembled parts.
 Two sub warehouses in its Karachi plant:
1. CKD store
Warehousing 2. RM store
 CKD (Complete Knock Down) are those stores where they store those parts
which they import from Japan and Taiwan and the capacity of this store is
approximately 2000 assembled parts.
 RM store are those stores where they store those parts which are in raw form like
steel sheet for making the body tank, rear brake front and many other parts
which they take from the local supplier and convert them into finished form and
the capacity of this store is same as CKD store.
  Total number of suppliers is 250, in Karachi and
Sheikhupura.
 This department is responsible for the relations and
dealing with different vendors.

 This department motivates vendors to produce

excellent quality and train them to achieve the highest
Vendors/ level of quality.
 This department performs VIP ( vendor improvement
Suppliers parts). Under this program the department
representatives go to the vendors and train them to
produce new products with high quality in reasonable
price.
 At present almost 82 vendors working with the
company.
  Atlas Honda hire local contractor for the purpose of
transporting assembled parts from Karachi to
Sheikhupura.
 There are three types of trucks that they use for this
Transportation purpose. All of them have different capacity

1. HINO (125 motorbikes)

2. BEDFORD (110 motorbikes)
3. MAZDA (65 motorbikes)
  As Atlas Honda produces its product according to the
customer or market demand, so they can use the
combination of executive opinion and naive method.
Executives from different departments can determine
the product demand on the basis of several factors like:
 The trend in the economy
Forecasting
 Annual budget of the company
Technique  The policies of government
 The inflation rate
 The past sales data