INDUSTRIAL MANAGEMENT

THE UNIVERSITY OF LAHORE

TOPIC:
Comparison between two sites

SUBMITTED TO:
Miss Asifa
SUBMITTED BY:
Saqib Baber
BSMT01141026

Zeshan Iqbal
BSMT01141029

Lahore

The first car rolled off the assembly line on May 26,
1994. Official inauguration was done by then
President of Pakistan, Sardar Farooq Ahmad Khan
Leghari. Mr.Kawamoto, President of Honda Motor
Company Limited Japan was also present to grace
the occasion.

The company was incorporated on November 04,

1992 and joint venture agreement was signed on
August 05, 1993. The ground breaking ceremony
was held on April 17, 1993 and within a record time
of 11 months, construction and erection of
machinery was completed.

It is a professionally managed progressive Head

Office with over 120,000 sq. meters covered
facilities and 2,500 employees.
Since the commencement of production in 1994,
the company has produced and sold more than
200,000 cars till July 12, 2012.

Products of Honda

Honda Accord

Honda CR-V

Honda CR-Z

Honda HR-V

Honda Civic (four models)

Honda City Aspire (four models)

Honda City (four models)

Land Cost:
Cheap land available
Large area required

Constraint

Land cost

Weight-age
factor

Karachi

Lahore

Rating

Evaluatio
n

Ratin
g

Evaluatio
n

25

10

50

Taxation Rules:
Irrespective of location no hard
terms
Government provides subsidy
Constraint

Taxation Rules

Weight-age
factor

Lahore

Karachi

Rating

Evaluatio
n

Rating

Evaluatio
n

21

21

Availability of man power and skills

Skilled man power
Easily available

Constraint

Availability of
manpower and skills

Weight-age
factor

Lahore

Karachi

Rating

Evaluatio
n

Rating

Evaluatio
n

28

28

Cost of Labor:
Cheap Labor

Constraint

Cost of labor

Weight-age
factor

Lahore
Rating

Evaluati
on

21

Karac
hi
Ratin
g

Evaluati
on

24

Housing Facility:
Properly planned & organized
Colonies near the Plant area

Constraint

Weight-age
factor

Lahore
Rating

Evaluati
on

Karachi
Rating

Evaluatio
n

Housing facility

18

18

Community Facility:
Schools facilities for employees children
Hospital and medication facilities
Constraint

Weight-age
factor

Lahore
Rating

Evaluation

Karachi
Rating

Evaluatio
n

Community
facilities

18

15

Raw Material:

Constraint

Weight-age
factor

Lahore
Rating

Evaluati
on

Karach
i
Rating

Evaluatio
n

Raw material
resources

35

45

Availability of Vendors and Spare

Parts:

It is not a problem for Honda.

Constraint

Weight-age
factor

Lahore
Rating

Evaluati
on

Karachi
Rating

Evaluatio
n

Availability of vendors
and spare parts

32

32

Sea-port facility:
Greater transportation cost because Lahore is
quite far away from sea port.

Constraint

Weight-age
factor

Lahore
Rating

Evaluatio
n

Karachi
Rating

Evaluatio
n

Seaport facility

15

Airport facility:
Both cities have airport facilities

Constraint

Weightage factor

Lahore
Rating

Evaluatio
n

Karachi
Rating

Evaluatio
n

Airport facility

14

14

Railway facility:
Available in both cities.

Constraint

Weight-age
factor

Lahore
Rating

Evaluati
on

Karachi
Rating

Evaluatio
n

Railway facility

18

15

High way and road facility:

Available in both cities.

Constraint

Highway and road

facility

Weight-age
factor

Lahore
Rating

Evaluatio
n

Karachi
Rating

Evaluatio
n

20

32

Availability of Capital:
Proper funds allocated
Government ensures investment when required

Constraint

Availability of capital

Weight-age
factor

Lahore

Karachi

Ratin
g

Evaluati
on

Rating

Evaluatio
n

45

45

Safety Rules:

Constraint

Weight-age
factor

Lahore
Rating

Evaluati
on

Karac
hi
Rating

Evaluati
on

Safety rules

10

14

Constraint

Weight-age
factor

Availability of capital

Karachi

Lahore
Ratin
g

Evaluatio
n

Ratin
g

Evaluation

45

45

Safety rules

10

12

Railway facilities

18

15

Seaport facilities

Airport facilities

14

14

Land cost

25

30

Availability of manpower
and skills

28

28

Cost of labor

21

24

Housing facility

18

18

Community facilities

18

15

Highway and road facilities

20

20

Availability of vendors and

spare parts

32

32

Raw material resources

35

45

Taxation rules

21

21

TOTAL

305

328