Project reprot :-

Subject:-

Submitted To:- Sir Hashim khan

Submitted by :- Imran khan (4491)

Sadaquat khan (44 )

Muhammad idrees( 44 )

Date…. 28/10/2010

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Acknowledgements

I owe profound thanks and deepest sense of gratitude to Almighty ALLAH the Beneficent and

the Merciful Who blessed us with determinations, the required potential and ability to complete

this piece of project work. No words to describe our sweet sensation about our affectionate

parents, family members and friends, because without their prayers and shadow of love, perhaps

it would be impossible to attain this target

I acknowledge with immense pleasure and want to describe our feelings of respect for our Atlas

Honda employs valuable guidance, inspiring criticism, zealous interest and constant

encouragement during the project. We found him to be very helpful and hardworking person. I

want to thanks all the personalities who have been a source of guidance during my research,

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Industry Analysis

Motorcycle Industry estimates show that last year a total of over 750000 motorcycles were sold in the country The industry has been experiencing a healthy growth rate of around 30%per year for the past 4-5 years. Pakistan came at number seven with a production of 750,000 units of motorcycles constituting to 2%of the global total.

Market Share of Motorbike in Pakistan

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Vision

Market leader in the motorcycle industry, emerging as a globally competitive centre of production and exports.

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Mission

A dynamic growth oriented company through market leadership, excellence in quality and service and maximizing export, ensuring attractive returns to equity holders, rewarding associates according to their ability and performance, fostering a network of engineers and researchers ensuing unique contribution to the development of the industry, customer satisfaction and protection of the environment by producing emission friendly green products as a good corporate citizen fulfilling its social responsibilities in all respects.

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Company Strategic GoalsCustomers

Our customer is the reason and the source of our business. It is our joint aim with our dealers to ensure that our customers enjoy the highest level of satisfaction from use of Honda Motorcycles.

Quality

To ensure that our products and services meet the set standards of excellence.

Local Manufacturing

To be the industry leader in indigenization of motorcycles parts.

Technology

To develop and maintain distinct business advantages through continuous induction of improved hard and soft technologies.

Shareholders

To ensure health and viability of business and thus safeguarding shareholders interest by maximizing profit. Payments of regular satisfactory dividends and adding value to the shares.

Employees

To enhance and continuously up-date each member's capabilities and education and to provide an environment which encourages practical expression of the individuals potential in goal directed team efforts and compensate them attractively according to their abilities and performance.

Corporate Citizens

To comply with all government laws and regulation, to maintain high standard of ethics in all operations and to act as a responsible members of the community.

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ATLAS HONDA Pakistan

Pakistani conditions. Company management structure, systems and processes are

reviewed periodically according to the demands of the-customer. - Decision making in the

Company in participation of all levels of personnel besides substantial and effective delegation

has been established at levels where applicable. Various participation programs such as 'Ala

Mayar' Quality Circles movement, launched in 1985, are encouraged to allow constructive self-

expression and teamwork. The Company training and development programs encourage

members to develop themselves and-contribute-to-their-full-potential.Atlas Honda is playing a

pioneering role in creating conditions for easy and confident use of motorcycles all over the

country. A vast and growing network of over 1600 motorcycles sales service and spare parts

dealers has been established.In order to back up this system, Atlas has set up Technical Training

Centers in Karachi and Lahore which provide several courses of varying duration and

complexity for motorcycle mechanics and users each year. Mobile training facilities take the

latest know-how, technology and maintenance of motorcycles to major rural and urban centers

around the country.

COMPANY INFORMATION

THE BOARD OF DIRECTORS

Mr. Yusuf H. Shirazi Chairman

Mr. Saquib H. Shirazi CEO

Mr. Koji Nakazomo Director

Mr. Nurul Huda Director

Mr. Sanaullah Qureshi Director

Mr. Sherali Mundrawala Director

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Mr. Toshitsugu Kaneko Director

Mr. Yoshitaka Kitamura Director

COMPANY SECRETARY

Mr. Zaryab Tarique

AUDIT COMMITTE

Mr. Sanaullah Qureshi Chairman

Mr. Sherali Mundarwala Member

Mr. Nurul Hoda Member

Mr. Amir Shakoor Khan Head of internal audit

Mr. Ashfaq Ahmad Secretary

GROUP EXECUTIVE COMMITTEE

Mr. Aamir H.Sherazi Chairman

Mr. Frahim Ali Khan Member

Mr. Iftikhar H.Sherazi Member

Mr. Jawiad Iqbal Ahmad Member

Mr. Saquib H.Sherazi Member

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Mr. Theresa Dias secretary

GROUP PERSONAL COMMITTEE

Mr. yousuf H Sherazi Chairman

Mr. Aamir H.Sherazi Member

Mr. Bashir Makki Member

GROUP SYSTEM & TECHNOLOGY COMMITTEE

Mr. Iftikhar H.Sherazi Chairman

Mr. Mustaq Alam Member

Mr. Zia Ullah Begg Member

MANAGEMANT COMMITTEE

Mr. Saquib H. Shirazi CEO

Mr. Nurul Huda VP Marketing

Mr. Toshitsugu Kaneko VP Technical

Mr. Suhail Ahmad CFO

Mr. Amir Awan GM Plants

Mr. Maqsood A.Basra GM CAMA

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BANKERS

Bank Al-Habib Limited

Credit Algricole Indosuez

Deutch Bank AG

Emirates Bank International P.J.S.C.

Habib Bank Limited

Muslim Commercial Bank Limited

National Bank of Pakistan

The Bank of Tokyo Mitsubishi Limited

United Bank Limited

REGISTERED OFFICE

1-McLeod Road, Lahore.

FACTORY

F-36, ESTATE AVENUE, S.I.T.E., KARACHI

26-27 KM, LAHORE-SHEIKHOPURA ROAD, SHEIKHOPURA26-27 KM, LAHORE-SHEIKHOPURA ROAD, SHEIKHOPURA

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Introduction of Atlas GroupThe Atlas Group comprises of 7 public and 4 private limited companies, with over 5,000 staff members. The foundation of the Atlas Group was laid by Mr. Yusuf H. Shirazi, in 1962 with the establishment of Shirazi Investments (Pvt) Limited with a capital of half a million rupees and three men - doing business in Trading Shares and R real Estate. Shirazi Investments is now one of the leading investment companies in Pakistan engaged in trading shares, fund management, underwriting, real estate and warehousing. The Company has played a key role in the promotion and acquisition of the Atlas Group of Companies.The growth of the Atlas Group is the result of its focus on good corporate governance. The Group's equity has risen to Rs. 15 billion; assets have exceeded Rs. 25 billion and sales have crossed the Rs. 30 billion mark. The Group paid taxes of Rs. 9 billion equivalent to 1.5% of the total government revenues. All this progress is due to the Group's reliance on the intellectual capital, dedicated efforts and team spirit of all the stakeholders. Every member is striving for excellence and taking pride in the Group's motto:

Atlas group operates in three sectors:

1-Engineering Sector

2-Trading Sector

3-Financial Sector

Engineering Sector

The Engineering Sector includes the following listed companies.

1- Atlas Honda Limited

2- Honda Atlas Cars (Pakistan) Limited

3- Allwin Engineering Atlas Engineering

4- Atlas Battery Limited

5- Atlas Power

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2- Trading Sector

The Trading Sector includes the following listed companies.

1-Shirazi Trading Co. (Pvt.) Limited

2- Honda Atlas Power Product (Pvt.) Limited

3- Total Atlas Lubricant Pakistan (Pvt.) Limited

Financial Sector

Atlas Group has following three financial companies.

1-Muslim Insurance Company Ltd. Shirazi Capital

2-Atlas Investment Bank Ltd

3-Atlas Asset Management Co. Ltd

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Atlas Honda Limited

Atlas Honda Limited is a joint venture between the Atlas

Group and Honda Motor Co., Japan. The company was created by the merger

of Panjdarya Limited and Atlas Autos Ltd. in 1991. Both these motorcycle

manufacturing concerns were established by the Atlas Group. In addition, a

third concern, Atlas Epak Ltd. was taken over by the Government of

Bangladesh. Atlas Honda Limited manufactures and markets Honda

motorcycles in collaboration with Honda Motor Company. The Company also

manufactures various hi-tech components in-house in collaboration with

leading parts manufacturers like Showa and Toyo Denso. Honda motorcycles

are by far the best selling motorcycles in the country with an unmatched

reputation for high quality, reliability-and-after-sales-service.Atlas has

undertaken to develop local manufacturing capabilities to the highest,

economically feasible level. While a major role in localization has been

assigned to vendor industries, Atlas has the country's largest in-house

manufacturing capability in the country at its Karachi and Sheikhupura

plants. To support the production facilities, the company has established an

R&D wing and tool making facilities which are growing rapidly in size and

function as the company expands.Atlas has managed to execute 12 Joint

Ventures and Technical Assistance Agreements between local vendors and

foreign manufacturers for transfer of technology besides Atlas has

directly executed 9 Joint Ventures-and (TAA) Technical-Assistance-

Agreements-other-than-with-Atlas Honda Ltd management is striving to

modernize company operations by adapting applicable aspects of research

and theory and more specially, Honda's unique philosophy of hard and

soft technologies to the realities of Pakistani conditions. Company

management structure, systems and processes are reviewed periodically

according to the demands of the-customer. - Decision making in the

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Company in participation of all levels of personnel besides substantial and

effective delegation has been established at levels where applicable. Various

participation programs such as 'Ala Mayar' Quality Circles movement,

launched in 1985, are encouraged to allow constructive self-expression and

teamwork. The Company training and development programs encourage

members to develop themselves and-contribute-to-their-full-potential.Atlas

Honda is playing a pioneering role in creating conditions for easy and

confident use of motorcycles all over the country. A vast and growing

network of over 1600 motorcycles sales service and spare parts dealers has

been established.In order to back up this system, Atlas has set up Technical

Training Centers in Karachi and Lahore which provide several courses of

varying duration and complexity for motorcycle mechanics and users each

year. Mobile training facilities take the latest know-how, technology and

maintenance of motorcycles to major rural and urban centers around the

country.

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Quality Policy

• Commitment to provide high quality motorcycles and parts.

• Light work in first attempt and on time.

• Maintain and continuously improve quality.

• Training of manpower and acquisition of latest technology.

• Safe, clean and healthy environment.

• Market leadership and prosperity for all.

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Environmental Policies

• Reduce and prevent the generation of waste and pollution in our production system.

• Establish management program to promote energy conservation and reduce waste.

• Comply with requirements of environmental legislation and local regulations as a

responsible corporate citizen.

• Promote relevant environmental protection knowledge and activities through

education and training.

• Initiate and extend environmental improvement activities from the company itself

to its business partners including parts manufacturers, general suppliers and

dealers.

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CEO

Finance Marketing Supply chain HRM R & DQuality

Procurement Warehouse Production Control

Imports

Local

SAPRM

Chairman

Organization Structure

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Company Supply chain

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Customer Dealers Assembly /manufacturing plant

CentralWarehouse(Sheikapura)

Part assembling(Karachi)

Local95% CD-7085% CD- 125

Import5% CD-7015% CD- 125

Dynamics of Material Flow

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ProcurementSuppliers

RetaiLogisti

cs Warehous Plant Supplier

Dynamics of Order Flow

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SAP “System Application & Products"

Master production scheduling (MPS)Material Requirement Planning (MRP)

Procurement Process:

1) Forecasted Procurement:

2) Bill Of Material (B.O.M.)

3) Price Negotiation

4) Performa Invoice is called

5) Purchase Order is placed

6) Establish Letter of Credit (L.C.)

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Supplier Plant Warehouse Logistics Retailer

Long range capacity planning

Aggregate Planning

Master Production Scheduling

Production Planning & control system

Pull SystemPush System

7) Revival and Recovery of Original Documents:

- Bill of Lading

- Invoice

- Letter of Credit

8) Clearing Agents

Delivery and Possession of Material

Production Planning

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Atlas Honda total plant capacity is 500,000 units in Shaikhupura and 105,000 units in Karachi.

But Honda produces motorbikes according to the market demand and customer demand, because

of this reason their plant always operates under capacity.

Atlas Honda planned to produce 400,000 units of motorbike during the current fiscal year that is

2006-07. But they are expecting to achieve 350,000 units of motorbikes during the current fiscal

year.

Atlas Honda is using both push as well as pull system. Push system is use before assembly plant. Pull system is used after they assemble the required units and supply their motorbikes to their dealers so that dealer could fulfill the customer’s demand

NEW NEW PRODUCTION PLANTPRODUCTION PLANT

Atlas Honda Ltd. began operations of its new motorcycle factory in Sheikhopura earlier in the

day, which increases its annual motorcycle output capacity from 400,000 units to 500,000 units.

The investment in the plant is about Rs1.8 billion. Production efficiency will be improved at the

new factory by cutting down on inventory, Honda Motor said. Atlas Honda aims to respond to the

growing demand for motorcycles in Pakistan, Honda said. The market has been expanding

rapidly, and is expected to grow to 800,000 units in 2006. For capturing more market share

marketing department perform following activities

1. NEW MODEL

2. CHANGES IN DESIGN

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3. INHOUSE PRODUCTION

NEW MODEL

In order to get more market share atlas Honda has been introducing new models over the time. The

most recent model was launched by them in this way is Honda CG 125 deluxe. Although they

introduced new model with the passage of time but the company maintained the quality

throughout the time.

CHANGES IN DESIGN

There was a great demand from the customers to launch a new model but it is a difficult job to launch a

new model so in order to fulfill the customer wants the company has a policy to change the stickers of fuel

tank and side covers and some other nominal changes in indicators headlights etc. but the engine

and other main accessories were not changed.

INHOUSE PRODUCTIO

At the outset of company 90-95% parts were imported from Japan and were assembled in

Pakistan. With the passage of time company introduced the concept of localization the company

encouraged the local vendors and suppliers to produce the parts of motorcycle according to the

level of Honda international. So in order to maintain the quality, the parts made by local vendors

were approved by the Honda international and after that they were used in local production. So

now atlas Honda has managed to localize almost 90% of the parts. Still 10% parts are imported

from Japan. The atlas Honda also provides assistance to their vendors to maintain high quality.

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They send their engineers to check the quality and to train the vendors in order to produce the

required qualitative product.

PRICE

The atlas Honda has four products and their prices are as under.

HONDA CD 70 Rs. 62,900

HONDA CD 100 Rs. 69,000

HONDA CG 125 Rs. 83,400

HONDA CG 125 DELUXE Rs. 89,900

The company uses the single price strategy means the product has the same price all over the

PakistanEarlier atlas Honda was the only producer of qualitative four-stroke motorcycle in

Pakistan. So they were taking the advantage of this monopolistic situation and using the price

skimming strategy and were charging highest pricing.

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Product Range

Atlas Honda has four products (brands)

HONDA CD 70

HONDA CD 100

HONDA CG 125

HONDA CG 125 DELUXE

HONDA CD 70

Honda CD 70 is the No. 1 choice in motorcycles. In to its

established superiority in terms of great speed and fuel economy, the

Honda CD 70 is presented with special features. The new

attractively designed CD 70 is right there at the top, with an

aerodynamic shape, super econo-power, a smoke-free 4-Stroke

engine and the special Honda 12-volt CDI technology.

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HONDA CD 100

Quality, Performance, Speed, Economy Petrol and Re-sale

Value define Honda Motorcycles. All these have managed to successfully bag your trust on the

New Hon da CD100. It is a stunning result of advanced Japanese technology and right up they’re

as an outstanding performer representing all the qualities that

make Honda motorcycles so special.

HONDA CG 125

New Honda CG 125 is the ideal combination of elegance and

power. Its speed and performance symbolizes the true essence of

modern lifeThe 125 cc 4-stroke engin e generates 11-Horse

Power with low fuel consumption. It is ideal for high speed, long runs and rough

pathways.Honda CG125 has a CDI Ignition System and a 12-volt battery (instead of 6-volt). The

headlight and indicators are brighter, with an easy starting-up of the engine.

HONDA CG 125 DELUXE

HONDA CG 125 DELUXE is newly launch bike of the Atlas Honda company. It’s also a 4

stroke engine and ideal for high speed, long run and rough pathways. It’s specially manufactured

for the young people because of its excellent speed and

this bike getting good response from the youth.

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PLACEMENT

Atlas Honda gained good market share due to its strong distribution network. For distribution atlas

Honda has divided the whole country into two regions.

1. SOUTH REGION

2. NORTH REGION

SOUTH REGION

Includes following territories

Karachi

Karachi region covers whole Sindh province

Quetta

This covers whole Baluchistan province

NORTH REGION

It includes following four regions.

Multan

Lahore

Rawalpindi

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Competition1. Yamaha

2. Suzuki

3. Sohrab

4. Pak hero

5. Hero

6. Star

7. Lifan

8. Jailing

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Components

Imported 5%

Locally Procured 95%

Procured 95%Lead Time:

6 monthsLead Time: 1 week

MANUFACTURING

Overview:

Total number of assemble parts 350 parts for each product.

Imported parts (CD-70) 5%

Imported parts (CD-125) 15%

Shifts in Karachi 1

Shifts in SKB 24 hour

CD 70:

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Components

Imported 15%

LocallyProcured 85%

Lead Time:6 months

Lead Time: 1 week

CD 125:

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Manufacturing Process:

In Atlas Honda there are total fourteen processes, as follows:

1. Frame Assembling

Where frame of motorbikes are produce in bulk

quantity.

2. Paint shop

In paint shop nearly 110 parts of motorbikes are being painted at present.

3. Buffing

Buffing shop used to buffer 35 components of motorbike

4. Alternative Current generation

This department works on electric works in a motorbike from engine wiring to ignition switch and light

5. Drum Gear Shift

This shop works on all work related to gear and chain

6. Drum Gear Shop

This department used to work on drums on front as well as rear drum

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7. Machine Shop

In this department all the extra machine work is done

8. Fuel Cope

Fuel tank and other material related to fuel e.g. filter and carburetor are assembling here.

9. Die casting

In this department chrome of metal parts done by Honda by own.

10.Engine Assembling

In this shop engine is assemble in proper form to fit into chassis or frame

11.Wielding

All the necessary wielding are done here regarding frame etc

12.Ignition Coil Shop

This shop related to work on ignition coil, which is right beside engine to produce electric for engine and light

13.Switch Assembling

Where switch of motorbike made and assemble in complete form

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14.Engine Machine Assembling

Here engine is attached to frame and check whether is working fine or not

Bottlenecks

In Atlas Honda supplier are considered as bottlenecks …

Bottleneck

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Supplier ProcurementPart

Assembling

karachi

Central warehouse (Sheikapur)

Assembling/Manfacturing

plantDealers

Warehousing STORES

Stores dept.

AHL performs following functions:

Manages the receiving, stacking & issuance of parts &materials to the shop. Ensures the provision &dispatches of required parts to SKP & KHI plant, spares part division &vendors. Handles the rejections &damages from all shops Handles the scraps & wastes generated in the factory

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Handling TechniquesAt AHL, following handling techniques are used: For handling from shop to shop especially designed trolleys, bins and pallets are used. Imported motorcycle components are received in Steel & wooden cases & pallets. Local vendor parts are received from receiving section in standard carton boxes.

VENDOR PROCUREMENT

At present, many vendors are working with the company.

This department performs following functions.

This department is responsible for all the relations and dealing with the different vendors.

This department motivates vendors to produce excellent quality and train them to achieve

the highest level of quality.

This department also deals with the CKD (complete knock down system).

This department performs VIP (vendor improvement programmed). Under this

programmed the department representatives go to the vendors and train them for new methods to

produce better quality at reasonable price.

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.

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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.

Dealers

Atlas Honda has established countrywide dealers’ network..

“5S” dealers

5s stands for the following five facilities

Sale ServiceSpare partsSpecial saleSecond hand sales

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Dealers, Spare Parts & sale Atlas Honda has massive dealers all over the Pakistan few of them as……….

Quetta;

Name: HONDA POINT Contact To:Mr. Khurrum Shahzad 

Services: 5S Dealer Contact#:081-2667925

 Email: Cell#:0300-9380266 

Address: Sitara Hotel Building, Liaquat Bazar, Quetta

Name: Zubair Autos Contact To:M. Afzal, Mr. Agha Moazam

 Services: 5S Dealer Contact#:042-37571304, 37538372 

Cell#:0300-4180969, 0323-4276154 

Address: 139 - Multan Road, P.O. Iqbal Town. Lahore

Name: FAISAL AUTOMOBILE Contact To:Mr. Shaheen Anwer 

Services: 5S Dealer Contact#:32729003 - 32729004 

Email: Cell#:0300-9286713 

Address: Shahrah-e-Liaquat, Saddar, Karachi

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Major Selling Cities

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Atlas Honda

Lahore Karachi Sheikapura Sialkot Quetta Gujranwala

Transportation

Type of trucks and thereCapacity:

HINO (125 motorbikes) to quetta

BEDFORD (110motorbikes) to quetta

MAZDA (65 motorbikes) to quetta

Charges of Transportation

BY HINO :- its take RS 35000

By MAZDA Track:-its take RS 30000

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BEDFORD Trcuk:-

Its contain 110 motor cycle and

Charge par bike 25000Rs….it is little lower

Mode of transportation…………..

By Train:- Atlas Honda company does not use the Train transportation to send bike to any city of Pakistan..becoz its take lot of time to deliver the bike on minimum time………..

AHL -- BUILDING A BETTER WORLD

Service training to VTI student

Atlas is engaged in providing technical training to student of vocational training institute. At our

service centre, different experts gave briefing and practical training to a batch of 15 students. The

training is of 30 days and comprised by all service technicalities. Training certificates were also

given to these students.

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Corporate Donation- Earth Quake Relief Fund

In the hour of national tragedy and devastation caused by the recent earthquake, Honda motors of

Japan and Atlas group, its local partner pledged all out support by contributing nearly Rs. 60

million to “President relief fund for earthquake victims” as well as providing urgent medical

support to its associates and their loved ones residing in the affected areas.

Further in the rehabilitation stage Honda and the Atlas group are not only planning to support to

reconstruct the devastated Honda dealers showroom, 4 stroke service centre and the spare parts

network but also providing mechanical training to unable the youth to become self employed and

support the transport infrastructure.

Collectively the major Japanese corporation and their local partners have so far contributed in

excess of US $ 25 million to the relief funds efforts.

Safety riding training

Including the attitude of safe motorcycling in oneself is becoming more and more essential in view of ever increasing no of accidents. Accordingly our customer care department conducted about 460safety riding sessions for understanding the importance of safe driving attitude.

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