SUBMITTED TO:

SIR FEHMEED IDREES

SUBMITTED BY:

STUDENT’S NAME: AHMED AITSAM GULL

STUDENT’S ID: BBA-FA08-005

Date: 09-30 - 2011

COMSATS INSTITUTE OF

INFORMATION TECHNOLOGY. LAHORE

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1. Acknowledgement:

First of all, I must thanks to “ALMIGHTY ALLAH” for helping me in many ways to

complete this “Internship Report”.

And also thanks to Mr.Jamil Asghar Khan (National Manager HR), Miss Asma Azmi

( Manager HR), Mr. Mutahir (Assistant manager HR),

And special thanks to logistics department Mr. Sohail Qaiser (national manager logistics),

Mr. Ahmad Ali (manager logistics), Sayyad Sikandar Raza Zaidi (Assistant manager

logistics), Faheem Dawood (Executive logistics), Farhan (Executive logistics), Hussnain

(Executive logistics), Abdul Sattar (Executive logistics) Najam Gilani (Executive logistics)

whose guidance, encouragement and wide range of suggestions and comments provide me

the way to think in quite different way to practically apply my knowledge.

I deeply thankful to Mr. Fahmeed Idrees (Assistant professor) for guidance.

I am hopeful that my Advisor will appreciate my efforts.

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2. Dedication: I dedicate it to ALMIGHTY ALLAH and his beloved prophet HAZRAT MUHAMMAD (PBUH). And my parents and all my loved ones.

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3. EXECUTIVE SUMMARY:

This report is about my internship I have under gone at Atlas Honda limited. The main

Purpose of internship is to learn by working in a practically scenario and to apply the

Knowledge acquired during studies I have stayed there as an internee for 6 weeks and Learnt

a lot of things which I cannot learn without the exposure in the real world’s I have Put my

efforts to show how all departments are working and how they are interlink with Each other

my report focuses on giving an insider view of the organization its systems And workings

and also of the customers. It also high lights the differences and the

Similarities between the real world and the academic world. It also highlights Atlas Honda

Limited leads the list of fifty competitors in motorcycle manufacturing industry in Pakistan

due to distinctive quality policy. Their corporate vision and values are

The driving forces and at present Atlas Group spreads over 11 companies both private and

public limited.

Atlas Group is a responsible entity which is highly committed to comply with corporate,

environmental laws and to conduct their business with utmost honesty and sincerity. At AHL

it is believed that development can only be achieved by equality and respect at work place.

They have been doing it for decades and there is no doubt they are reaping its benefits.

AHL has a manufacturing capacity of 910 units per shift under strict quality standards and

their sale network is well spread to sell all of them. They have a 5s dealer network to satisfy

the customer to the optimum level.

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4. Table of contents:

1. ACKNOWLEDGEMENT: 3

2. DEDICATION: 4

3. EXECUTIVE SUMMARY: 5

4. TABLE OF CONTENTS: 6

5. INTRODUCTION ABOUT ORGANIZATION BUSINESS SECTOR (AUTOMOBILE INDUSTRY): 9

6. MOTORCYCLE INDUSTRY: 9

7. THE GROUP: 10

8. OVERVIEW OF THE ORGANIZATION: 11

8.1. COMPANY: 118.2. PLANTS: 128.2.1. KARACHI PLANT: 128.2.2. SHEIKHUPURA PLANT: 12

9. VISION: 13

10. MISSION: 13

11. QUALITY POLICY: 14

12. ENVIRONMENT POLICY: 14

13. GROUP COMPANIES: 15

14. ORGANIZATIONAL STRUCTURE: 16

14.1. COMMENTS ON THE ORGANIZATIONAL STRUCTURE: - 16

14.2. NUMBER OF EMPLOYEES: 17

14.3. SHIFT TIMINGS: 17

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15. MANAGEMENT: 18

16. MILESTONES: 20

17. SIX KEY PRINCIPLES OF ATLAS HONDA: 22

17.1. BACK TO BASICS: 2217.2. 3RS (RESPECT, RECOGNITION, AND REWARD): 2217.3. CASH IS KING: 2217.4. ANALYSIS, ANALYSIS AND ANALYSIS: 2217.5. CUSTOMER FIRST: 2217.6. 650 K IS MUST IN 2011: 22

18. STRAITEGIC GOALS: 22

18.1. CUSTOMERS: 2218.2. QUALITY: 2218.3. LOCAL MANUFACTURING: 2218.4. TECHNOLOGY: 2218.5. SHAREHOLDERS: 2318.6. EMPLOYEES: 2318.7. CORPORATE CITIZENS: 23

18.8. NATURE OF ORGANIZATION: 23

18.9. MANAGEMENT: 24

19. STATEMENT OF ETHICS AND BUSINESS PRACTICES FOR THE YEAR 2010-2011: 24

20. SWOT ANALYSIS: 27

21. MARKETING 29

21.1. 4 P’S OF MARKETING: 29

21.1.1. PRODUCTS: 2921.1.2. PRICE: 3521.1.3. PLACEMENT: 3621.1.4. PROMOTION: 3721.2. SALES: 3821.3. SERVICE DEPARTMENT: 3921.4. WORKING OF MARKETING DEPARTMENT: 4021.5. STRUCTURE OF THE MARKETING DEPARTMENT 41

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21.6. BRAND: 41

22. FINANCIAL ANALYSIS: 42

23. INTRODUCTION OF DEPARTMENTS: 43

23.1. LOGISTICS DEPARTMENT: 4423.2. PRODUCTION PLANNING CONTROL: 4423.3. QUALITY ASSURANCE DEPARTMENT: 4523.4. I.T DEPARTMENT: 4623.5. CORPORATE AFFAIRS: 4623.6. HUMAN RESOURCE DEPARTMENT: 4723.7. STORES DEPARTMENT: 50

23.8. FINANCE DEPARTMENT: 51

24. CULTURE: 53

25. CRITICAL ANALYSIS: 54

25.1. FUTURE PROSPECTS OF THE ORGANIZATION: 54

26. CONCLUSION & RECOMMENDATIONS: 55

27. MY INTERNSHIP: 57

27.1. SCOPE OF LOCAL PURCHASE DEPARTMENT 5727.3. PURCHASE OF CAPITAL GOODS 61

28. WORKING SPECIMENS 62

29. BIBLIOGRAPHY 67

Appendixes: 68

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5. Introduction about organization Business sector (Automobile

Industry):

The auto market is one of the largest segments in world trade.

The auto industry showed signs of recovery. It posted a growth of 16.5%, which is partly

reflective of the lower base of last year. Further, the anecdotal evidence suggests that rural

demand for automobiles was higher than anticipated. This was due to continued liquidity in

rural areas for reasons as mentioned above. However, the relentless cost increases arising

from higher commodity prices, weaker Pak Rupee against other foreign currencies, higher

inflationary conditions and frequent interruptions to business caused by power and security

concerns, continuously put pressure on the margins and pushed up the manufacturing cost.

Considered to be one of the main contributors towards technology development and

employment generation, the auto industry necessitates an encouraging environment for

maintaining the confidence of the investors Changing models, improving fuel efficiency,

cutting costs and enhancing user comfort without compromising quality are the most

important challenges of the auto industry in a fast globalizing world. Hence there is a need

for exploring the industrial complementarities in the region for better quality, favorable costs,

fuel efficiency and attractive designs. Therefore, the requirement of information exchange in

the region is much more pronounced now than ever before for keeping the auto industry

afloat and competitive. The objective should not be only to understand each other’s

comparative advantage but also to explore mutual complementarities as well as to build an

early warning system on the trends in industry and changes in user preference to brace for the

challenges confronting the auto industry. Mutual consultation among the countries of the

region therefore assumes the proportion of an abiding imperative for regional capacity-

building and preparing the countries to meet the requirements of the new economy through

research, advisory services, information dissemination and exchange of country experiences,

besides joint ventures and technology tie-ups.

(source: Auto Market. (n.d.). Automarket. Retrieved from Automarket: www.automarket.com)

6. Motorcycle Industry:

The two wheeler industry maintained momentum from last year and registered handsome

growth of 17.6%. The growth was somewhat affected by the floods in August 2010, however,

higher prices of crops more than compensated the effects of the floods. This growth can also

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be attributed to escalating fuel prices, poor transportation system, shortage of natural gas and

increase in transportation fares coupled with hike in four wheeler prices, which has created

demand for motorcycles in urban and semi urban areas In anticipation of growth prospects

and market dynamics, greater competition attracting fresh investments, better products and

better network is scheduled for the years ahead. However, the formal sector in the industry is

currently facing stiff competition in pricing of products against the malpractices of the

informal sector through sales tax avoidance, under invoicing and smuggling. At a time, when

Government is looking for different sources of revenue generation, this apparent source of

collection must be brought into the tax net by checking illegal practices.

7. The Group:

Atlas Honda Limited is a joint venture between the Atlas Group and

Honda Motor Co., Japan. The foundation of the Atlas Group was laid 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 real estate. The growth of the Atlas Group is the result of its focus on good

corporate governance. Today Atlas is a diversified group dealing in engineering, financial

services and trading. It consists of seven public limited companies out of which six are

quoted on the Stock Exchanges in Pakistan, and five private limited companies. Atlas

shareholders equity now stands over 25 billion rupees; assets have increased to over 60

billion rupees; personnel strength is over 7000 and annual sales have crossed 60 billion

rupees. The Group paid taxes of Rs. 15 billion over 2% 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:

Organization Development

Through Self Development

(source:Atlas Honda website)

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8. Overview of the Organization:

8.1. Company:

Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co.

Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos

Ltd. in 1988. 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 in 1971 after the fall of Dhaka. AHL 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

Nippon Denso and Toyo Denso. Honda motorcycles are by far the largest selling motorcycles

in the country with an unmatched reputation for high quality, reliability and after-sales-

service. AHL 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 at its Karachi

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

R&D wing and tool making facilities through CAD/CAM which are growing rapidly in size

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

Venture/Technical Assistance Agreements between local vendors and foreign manufacturers

for transfer of technology. Besides, Atlas has directly executed 9 Joint Venture/Technical

Assistance Agreements other than Honda. AHL management is striving to modernize

company operations by adapting applicable aspects of research and theory and more

specifically, Honda’s unique philosophy of hard/soft technologies to the realities of Pakistani

conditions. Company management structure, systems and processes are changed according to

the demands of the customer, growth and new technology. Efforts are being made to develop

participation at all levels of personnel in decision-making and a 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 strongly encouraged to

allow constructive self-expression and teamwork. The Company training and development

programs encourage all members to develop themselves and contribute to their full potential..

A vast and growing network of over 1600 sales service and spare parts dealers has been

established. In order to back up this system. 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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Annual Production Capacity: Authorized Capital:

600,000 units 1 Billion (rupees)

1 Billion (rupees)

Paid Up Capital: - 625.52 Million

(source:www.Atlashonda.com)

8.2. Plants:

8.2.1. Karachi Plant:

Company mother plant is based in the city of lights and provincial capital of Sindh, The

Karachi city. It is located at F-36, Estate Avenue, S.I.T.E. Karachi. Atlas Group signed

technical agreement with Honda in 1963 and plant started commercial production

subsequently. Plant spread over an area of 5 acres. In 1964, production began with 7

motorcycles per day. Now plant production has reached to 300 units in a day. Plant

manufactures CD 70 only.

(source: Atlas hona.karachi plant)

8.2.2. Sheikhupura Plant:

Another plant is situated in Sheikhupura city, Punjab. It is located at 26-27 KM Lahore-

Sheikhupura Road Sheikhupura. The plant was built in 1981 and spread over an area of 27

acres with the establishment of modern and synchronized 500K plant in 2006. The plant

manufactures all four models i.e. CD 70, CD 100, CG 125 and CG 125 Deluxe.

(source: Atlas honda.Sheikhupura plant)

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Export:

Bangladesh

Afghanistan

Regional Offices:

Lahore: 1 Mecloed Road Lahore-54000

[ (042) 111-111-245, 37225015-17,

37233515-17 ]

Rawalpindi: 60-Bank Road, Saddar [ (051)

5120494-6, 5120497 ]

Multan: Azmat Wasti Road Multan-60000

[ (061) 4540054, 4540028, 4571989 ]

Rahim Yar Khan: Atlas Honda Limited, 4-B

Zamindara Colony [(068) 5888809 ]

(source: Atlas honda sheikupura)

9. Vision:

Market leader in the motorcycle industry, emerging as a globally competitive centre of

production and exports.

10. 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.

Our slogan:

For Honda to remain Honda, and for everyone to realize their aspirations, we must believe in

"The Power of Dreams"

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11. Quality Policy:

Commitment to provide high quality motorcycles & parts

Right 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

12. Environment Policy:

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

Establish management program to promote energy conservation and reduce waste or

resources

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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13. Group Companies :

. 1962

1962

1966

1973

1980

1981

Honda Atlas Cars (Pakistan) Ltd . 1992

Honda Atlas Power Products (Private) Ltd . 1997

Total Atlas Lubricants (Private) Ltd . 1997

. 2002

Shirazi Capital (Private) Ltd . 2005

2007

Atlas Worldwide General Trading LLC 2007

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14. Organizational Structure:

Appendix 1.

14.1. Comments on the organizational structure: -

No doubt AHL’s organizational structure is working properly; all decisions are made by top

management which gives instructions to Middle managerial staff, its middle management

responsibility to implements these orders. Company also gets feedback from their employees

mean the feedback also transfer from lower to top management.

A flat organizational structure exist in Atlas Honda Limited as in contrast to a tall

organisation, a flat organisation will have relatively few layers or just 3 to four layers of

management. This means that the “Chain of Command” from top to bottom is short and the

“span of control is wide”. Due to the small number of management layers.  It has greater

communication between management and workers, with a better team spirit and less

bureaucracy and easier decision making, mean it’s true there are three types of Management

are working in the organization Top management, Middle Management and lower

management. The fewer levels of management which includes benefits such as lower costs as

managers are generally paid more than workers. The organic structure is more flexible, more

adaptable to a participative form of management, and less concerned with a clearly defined

structure. The organic organization is open to the environment in order to capitalize upon

new opportunities.

Organic organizations have a flat structure with only three levels of management. Flat

organizations emphasize a decentralized approach to management that encourages high

employee involvement in decisions. All departments are working independently but with the

collaboration of other departments, the in charge or manger is responsible of their

department, all employees report to their supervisor, its supervisor responsibility to submit

this report the section or department in charge and after assessment this report submit to top

management. Top management always encourages the team efforts and also individual’s

efforts.

The purpose of this structure is to create family environment in the organization and all

members’ respects and pay attention to others.

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ATLAS HONDA LIMITED (SKP PLANT) Quality assurance

departmentAppendixes 2:

14.2. Number of Employees:

More than 4000 employees are working in the organization in three shifts.

Regular schedule of work will be nine (9) hours & (35 minutes) per working day, from

Monday to Friday and Alternate Saturday, total of not more than forty eight (48) hours per

week, except where the nature of work or exigencies of the business operations require the

establishment of a special working schedule.

14.3. Shift Timings:

GENERAL SHIFT: Working Hours 07:45 a.m. To 05:20 p.m.

A SHIFT: Working Hours 07.45 a.m. to 03.45 p.m.

B SHIFT: Working Hours 03.45 p.m. to 11.45 p.m.

C SHIFT: Working Hours 11.45 p.m. to 07.45 a.m.

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15. Management:

Board of Director

Yusuf H. Shirazi

Chairman

Hisao Kobayashi

Director

Koji Takamatsu

Director

Nurul Hoda

Director

Sanaullah Qureshi

Director

Sherali Mundrawala

Director

Takashi Nagai

Director

Saquib H. Shirazi

Chief Executive Officer

Rashid Amin

Company Secretary

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Audit Committee

Sanaullah Qureshi

Chairman

Sherali Mundrawala

Member

Nurul Hoda

Member

Zaheer Ul Haq

Head of Internal Audit

Syed Tanvir Hyder

Secretary

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Management Committee

Saquib H. Shirazi

Chief Executive Officer

Bankers

Allied Bank Limited

Bank Al-Habib Limited

Barclays Bank PLC Pakistan

Deutsche Bank AG

Faysal Bank Limited

Habib Bank Limited

MCB Bank Limited

National Bank of Pakistan

NIB Bank Limited

Soneri Bank Limited

Standard Chartered Bank (Pakistan) Limited

The Bank of Tokyo-Mitsubishi UFJ Limited

United Bank Limited

Nurul Hoda

Vice President MarketingHisao Kobayashi

Vice President Technical

Suhail Ahmed

Chief Financial Officer

Sultan Ahmed

General Manager Quality Assurance

Koji Takamatsu

General Manager Research & Development

Mushtaq Alam

General Manager Information Technology

Javed Afghani

General Manager Marketing

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Razi ur Rahman

General Manager Human Resources,

Administration & Corporate Affairs

Factories

Muhammad Khalid Aziz

General Manager Plants

26-27 KM, Lahore-Sheikhupura Road,

Sheikhupura-39321

Tel: (92-56) 3406501-8

Fax: (92-56) 3406009

Amir Ali Bawa

General Manager Planning & Commercial

Afaq Ahmed

General Manager Research,

Development & ProjectsShakeel Mirza

General Manager Supply Chain

F-36, Estate Avenue, S.I.T.E., Karachi-75730

Tel: (92-21) 32575561-65

Fax: (92-21) 32563758

Auditors

Registered Office

1-McLeod Road, Lahore-54000

Tel: (92-42) 37225015-17, 37233515-17

Fax: (92-42) 37233518, 37351119

E-mail: ahl@atlas.com.pk

Website: www.atlashonda.com.pk

Hameed Chaudhri & Co.

Chartered Accountants Show Room

West View Building, Preedy Street, Saddar,

Karachi, Tel: (92-21) 32720833, 32727607

Spare Parts Division

D-181/A, S.I.T.E, Karachi-75730

Tel: (92-21) 32576690

Branch Offices

Legal Advisors

Mohsin Tayebaly & Co.

Agha Faisal - Barrister at Law

60-Bank Road, Saddar, Rawalpindi

Tel: (92-51) 5120494-6,

Fax: (92-51) 5120497Tax Advisor

(source: Atlas honda Annual report 2010-2011)

16. MILESTONES:

The company is engaged in the manufacturing and marketing of motorcycles and auto parts.

Since its inception the company has experienced an unprecedented growth in its operations

from a small manufacturing company to the leading motorbike manufacturer of Pakistan.

Following is the chronological order of the major events in the company's history:

2010: Launched New Model of CG 125 Deliuxe - Euro II

2010: SAFA Award for Best Corporate governance

disclosures in annual report 2008

2010: Best Corporate report award by Joint Committee of

ICAP & ICMAP

2009: HRM Excellence Award 2009

2009: National CSR Award 2009

2009: Launched New Model of CD 100 - Euro II

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Ernst & Young Ford Rhodes

Sidat Hyder, Chartered

Accountants Azmat Wasti Road, Multan

Tel: (92-61) 4540054, 4540028, 4571989,

4572898, Fax: (92-61) 4541690

4B, Zamindara Colony, Rahim Yar Khan

Tel: (92-68) 5888809

Hameed Majeed Associates (Pvt.) Limited

H. M. House, 7-Bank Square,

Shahrah-e-Quaid-e-Azam, Lahore

Tel: (92-42) 37235081-82

Fax: (92-42) 37358817

National Bank of Pakistan

The Bank of Tokyo-Mitsubishi UFJ Limited

Lending Institutions

Warranty & Training Centres

7-Pak Chambers, West Wharf Road,

Karachi, Tel: (92-21) 32310142

Azmat Wasti Road, Multan

Tel: (92-61) 4540028

28 Mozang Road, Lahore

2009: ISO 14001-2004 Environment Certificate acquisition

2008: Established DCC (Delivery Control Center) at Karachi Plant

2007: Successfully implemented SAP ERP to its business process, all over Pakistan

2006: Top 25 company award by KSE 2006 Established DCC at Sheikhupura Plant

2006: Annual Production reached to 360,000

2004: Top 25 company award by KSE

2003: Best Corporate Report award by joint committee of ICAP & ICMAP

2002: Deletion level reached to 87% and 80% for CD70 & CG125 respectively

2002: Establishment of Research and Development Wing 2002 Introduction of Gratuity

2002: Best Corporate Report award by joint committee of ICAP & ICMAP

2001: Concept of 5S dealership - Sales, Service, Spare Parts, Second hand exchange and .

. Special (Credit) sales launched

2000: Investment in Crankshaft Project

1999: ISO 9002 certification for both factories

1995: Export Agreement signed with Honda Motor Company Limited Japan

1995: Exports to Bangladesh 1994 Mr. Kawamoto President, Honda Motor Company

Limited, . visited AHL

1992: Change of name to Atlas Honda Limited (AHL

1991: Inauguration of CG125 Engine Project at Sheikhupura Factory

1989: Export of built up motorcycles to Nepal

1988: Merger of Panjdarya Limited into Atlas Autos Limited

1988: Production capacity expansion III

1988: Joint Venture agreement signed with Honda Motor Company Limited

1987: Inauguration of CD70 Engine Project at Karachi Factory

1981: Commercial Production started at Panjdarya Limited

1981: Production capacity expansion II

1979: Incorporation of Panjdarya Limited as Joint Venture with Honda Motor Company

. Limited

1976: Production capacity expansion I

1965: Public offering of Shares

1964: Commercial Production started

1962: Technical Assistance Agreement signed with Honda Motor Company Limited Japan

1962: Incorporation of Atlas Autos Limited

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17. Six key principles of ATLAS HONDA:

17.1. Back to basics:

The analysis of customer, competition, company, and cost is put in focus at the start of each

endeavor.

17.2. 3Rs (Respect, Recognition, and Reward):

To b a great company, we need to put respect, recognition, and reward-and in that order-at

the core of our management practices.

17.3. Cash is king :

The company is cash rich, we will have the resources to beat the competition. we must re-

assess and re-vitalize the focus on generating and preserving cash.

17.4. Analysis, analysis and analysis:

The decision making procedure be supported by a combination of ”data analysis” backed by

”genba” on the spot analysis.

17.5. Customer first:

The endeavor of our company need to be that we understand the company more deeply and

create market or financial solutions for him to buy his “dreams product-our product”

17.6. 650 k is must in 2011:

It is our goal to to sell a minimum of 650k in 2011. For this we must use revolutionary path

instead of evolutionary in everything we do.

18. STRAITEGIC GOALS:

18.1. Customers :

Our customers are 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.

18.2. Quality:

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

18.3. Local Manufacturing:

To be the industry leader in indigenization of motorcycles parts.

18.4. Technology:

To develop and maintain distinct business advantages through continuous induction of

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improved hard and soft technologies.

18.5. 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.

18.6. 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.

18.7. 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.

AHL Commitments:

AHL commitments to provide high quality motorcycles and parts. Right work in first attempt

on time. Maintain and continuously improve quality. Training of Manpower and acquisition

of latest technology. Safe clean and health environment.

18.8. Nature of Organization:

Automobile Sector

Business Volume:

500000-unit / annum (Production).it is production target achieved in 2010.and the 2011

production target is 650000-units / annum.

Product Lines:

Product line divides according to Engine capacity (CC)

CD-70

CD-100

CG-125

CG-125 Deluxe

Competitors:

Japanese Brands: -Yamaha Motorcycle, Suzuki Motorcycle

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Chinese Brands: - Sohrab, Pak Hero, Ravi, Metro, Star

18.9. Management:

Maintaining a global viewpoint we are dedicate to supplying product of the `highest quality

yet a reasonable point for worldwide customer satisfaction. Honda remains its rich culture of

customer satisfaction, it being serving nation. For management we have following our

management strategy.

Proceed always with ambition and youthfulness.

Respect sound theory, develop fresh ideas, and make the most effective use of time.

Enjoy your work and encourage open communications.

Strive constantly for a harmonious flow of work.

Be ever mindful of the value of research and endeavor.

Respect for all – man has priority over others.

MANGEMENT LIFE CYCLE

PLANNING

CONTROLLING ORGANIZING

LEADING

19. STATEMENT OF ETHICS AND BUSINESS PRACTICES for the year

2010-2011:

Standard of Conduct:

Atlas Honda limited conducts its operations with honesty, integrity and openness, and with

respect for human rights and interests of the employees. It respects the legitimate interests of

all those with whom it has relationship.

Obeying the Law:

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Atlas Honda Limited is committed to comply with the laws and regulations of Pakistan.

Employees:

Atlas Honda Limited is committed to create a working environment where there is mutual

trust and respect and where everyone feels responsible for the performance and reputation of

the company.

It is an equal opportunity employer which recruits, employs and promotes employees on the

sole basis of qualification and abilities needed for the work to be performed.

It is committed to provide safe and healthy working conditions for all employees.

It will not use any form of forced, compulsory or child labor.

It is committed to working with employees to develop and enhance each individual’s skills

and capabilities.

It respects the dignity of the individual and right of employees to freedom of association.

It will maintain good communication with employees throughout company based information

and consultation procedures.

Consumers:

Atlas Honda Limited is committed to provide branded products and services, which

consistently offer value in terms of price and quality. Products and services will be accurately

and properly labeled, advertised and communicated.

Shareholders:

Atlas Honda Limited will conduct its operations in accordance with principles of good

corporate governance. It will provide timely, regular and reliable information of its activities,

structure, financial situation and performance to all shareholders.

Business Partners:

Atlas Honda Limited is committed to establish mutually beneficial relations with its

suppliers, customers and business partners.

In its business dealings it expects its partners to adhere to business principles consistent with

its own.

Community Involvement:

Atlas Honda limited strives to be a trusted corporate citizen and, as an integral part of society,

fulfills its responsibilities to the societies and communities in which it operates.

Public Activities:

Atlas Honda Limited encourages to promote and to defend its legitimate business interests.

26

It will co-operate with government and other organizations, both directly and through bodies

such as trade associations, in the development of proposed legislation and other regulations,

which may affect legitimate business interests.

It neither supports political parties nor contributes to the fund of groups whose activities are

to promote party interests.

The Environment:

Atlas Honda Limited is committed to make continuous improvements in the management of

its environmental impact and to the longer-term goal of developing a sustainable business. It

will work in partnership with others to promote environmental care, increase understanding

of environmental issues and disseminate good practice.

Innovation:

Atlas Honda Limited makes innovations to meet consumer needs. It respects the concerns of

consumers and of society. It works on the basis of sound research, applying high quality

standards.

Competition:

Atlas Honda Limited believes in fair competition and supports development of appropriate

competition laws. Atlas Honda Limited and employees will conduct their operations in

accordance with the principles of fair competition and all applicable regulations.

Business Integrity:

Atlas Honda Limited does not give or receive, whether directly or indirectly, bribes or other

improper advantages for business or financial gain. No employee may offer, give or receive

any gift or payment, which is, or may be construed as being, a bribe. Any demand for, or

offer of, a bribe must be rejected immediately and reported to management. Its accounting

records and supporting documents must accurately describe and reflect the nature of

underlying transitions. No undisclosed or unrecorded account, fund or asset will be

established or maintained.

Conflict of interests:

All Atlas Honda Limited employees are expected to avoid personal activities and financial

interests, which could conflict with their responsibilities to the company. They must not seek

gain for themselves or others through misuse of their positions.

Compliance – Monitoring – Reporting:

27

Compliance with business principles is an essential element in Atlas business success. The

board of Directors of Atlas Honda Limited is responsible for ensuring that principles are

communicated to, and understood and observed by, all employees.

Day-to-day responsibility is delegated to the senior management. They are responsible for

implementing these principles, if necessary, through more detailed guidance tailored to local

needs.

Assurance of compliance is given and monitored each year. Compliance with the code is

subject to review by the Board supported by Audit Committee of the Board.

Any breach of code must be reported in accordance with the procedures specified by the

management.

The Board of Atlas Honda Limited expects employees to bring to their attention, or to that of

senior management, any breach or suspected breach of these principles.

Provision has been made for employees to be able to report in confidence and no employee

will suffer as a consequence of doing so.

20. SWOT Analysis:

20.1. Strength :

Organizational culture.

Good Corporate Image.

Qualified and well trained staff

High Quality Products

ISO Certified

Resale value

Customer Care

Motivated, loyal and skilled employees.

Market share and volume.

Experienced, developed and loyal service dealers network.

Largest and penetrated 4-Stroke mechanics network.

Availability of Spare parts

Best training facilities

28

Best warranty system.

20.2. Weakness :

Lack of excellent marketing.

Electric shortfall

High Price of Products

Political instability

Low per capita income of public

Increasing Prices of Oil

Rising inflation

20.3. Opportunities :

Exploration of new markets.eg. srilanka, Africa. and other countries.

Stabilize the improve process of export to Afghanistan, srilanka, and Bangladesh to

capture more market share.

Create loyal customer by various customer oriented activities/ services.

Improvement of relationship with dealers.

Newly developed Areas/Markets (e.g. Gawader)

Industry expansion

Technology upgrading

20.4. Threats :

Competitors follow up to AHL’s dealers and offering various incentives.

Chinese cheaper products challenges

Strong competition from competitors in near future

Instability of Government

Energy crisis

High rate of Taxation

29

21. Marketing

The marketing team rightly takes pride in achieving an all time

high sales. The real achievement of the company has been in

shouldering its responsibility as the market leader in the growth

of the total motorcycle industry. Atlas Honda has taken some

tough decisions in enhancing the total customer base as well as

dealing with the menace of the unorganized sector. On the

achievement of the landmark, Atlas Honda with the support of

its large supplier network readjusted its prices to pass on the

benefit to its customers. Other players followed suit and the

unprecedented adjustment of prices changed the two wheeler

market in the country in a way that has never been seen before.

The volumes that have now become possible will provide the all-important base for more investment

and even better quality. In the process, Atlas Honda is now leading the two wheeler industry towards

a path

that will enable it to become globally Competitive.

21.1. 4 p’s of Marketing:

21.1.1. Products:

Currently we have following products to fulfill the needs of market.

Honda CD 70

Honda CD 100

Honda CG 125

Honda CG 125 delux

(source: www.AtlasHonda.com)

30

21.1.1.1. Honda CD 70:

Honda CD 70 is the first choice in motorcycles. The New CD 70 gives a perfect blend of

Japanese technology along with charismatic design, in addition to its established superiority

in terms of durability and fuel economy.

Further, 2 years engine warranty not only provides peace of mind to its valuable customers

but also the best value for their money.

(source: www.AtlasHonda.com)

New CD 70 is an ideal combination of attractive design with super econo-power and smoke-

free 4-Stroke engine, which promises you the most economical ride of your life. The new

eye-catching graphics, comfortable new seat design and aerodynamic shape have made

Honda CD 70 best choice and a perfect partner. Further, high resale value of Honda CD 70

proves to be a life time asset for its customers. Atlas Honda's extensive dealership network

makes the motorcycle and its parts, available at your doorstep and its countrywide warranty

facilities provide you trouble free companionship.

Key Features:

2 Year Engine Warranty.

New design seat and rear cowl.

New beautiful graphics.

Petrol tank with 9 liter capacity.

Latest Switch Assembly (controlled with left hand).

Strong Side Cover with Lock.

Non-asbestos Eco-friendly Brakes

31

Specification CD-70:

Engine 4-Stroke OHC single cylinder cooled by air

Displacement 72 cm3

Bore & Stroke 47.0 x 41.4 mm

Compression Ratio

8.8:1

Clutch Multiple wt plates

Transmission continuous 4 speed mash

Starting Kick start

Frame Backbone type

Dimension(Lxwxh) 1900 x 760 x 995 mm

Ground Clearance 140 mm

Petrol Capacity 9 Liter

Tyre at Front 2.25 - 17 4 PR

Tyre at Back 2.50 - 17 4 PR

Dry Weight 82kg

21.1.1.2. Honda CD 100

Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and Re-sale

Value. All these have managed to successfully bag your trust on the New Honda CD100. It is

a stunning result of advanced Japanese technology and right up there as an outstanding

performer representing all the qualities that make Honda motorcycles so special.

Key Features:

Strong Footrest

Fuel Gauge Indicator

Multi Reflector Head Light

Winning Style

Econo Power 4-Stroke Engine

Double Cradle Strong Tubular Frame

32

Strong Suspension

Wider Tyre & Strong Road Grip

Crankcase Emission Control System

Bigger Brake Drum with Non-Asbestose Brake Shoe

Element Air Cleaner (Foam Type)

Utility Box

Specification CD-100 :

Engine 4-Stroke OHC cooled by air

Displacement 97.1 cm3

Bore & Stroke 50 x 49.5 mm

Compression Ratio 9.0:1

Clutch Weight contains different plates

Transmission Continuous 4 speed mesh

Starting Kick start

Frame Double craddle tubular type

Dimension(Lxwxh) 1983 x 735 x 1045 mm

Ground Clearance 160 mm

Tyre at Front 2.75 - 18 4 PR

Tyre at Back 2.50 - 17 6 PR

Dry Weight 98 KG

21.1.1.3. Honda CD 125:

Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and Re-sale

Value. All these have managed to successfully bag your trust on the New Honda CG125. It is

a stunning result of advanced Japanese technology and right up there as an outstanding

performer representing all the qualities that make Honda motorcycles so special.

The 125 cc 4-stroke engine generates 11-Horse Power with low fuel consumption. It is ideal

for high speed, long runs and rough pathways.

33

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.

Key Features:

Comfortable Seat with Rear Grip

New Beautiful Petrol Tank with Graphics

Strong 4-Stroke Smoke Less Engine

Stylish Speedometer with Economy Zone

Elegant Front Light

New Shape For Back Light

Specification CG-125 :(source: www.AtlasHonda.com)

Engine 4-Stroke OHV cooled by air

Bore & Stroke 56.5 x 49.5 mm

Wheel Base 1200 mm

Starting Kick start

Transmission Continuous 4 speed mesh

Dimension(Lxwxh) 1911 x 731 x 1017 mm

Height of Seat 743 mm

Ground Clearance 137 mm

Petrol Capacity 9.2 Liter

Tyre at Front 2.50 - 18 4 PR

Tyre at Back 3.00 - 17 6 PR

Dry Weight 96.5 KG

Suspension Front Telescopic Forke 103 mm Travel

Suspension Back Swing Arm 68 mm Travel

Final Driver Roller Chain

21.1.1.4. Honda CD 125 delux:

34

The CG 125 Deluxe is the unique combination of power & style, a new addition in the

company as 125 cc. The new power up 4 stroke engine gives same fuel economy as CG 125.

An ideal model for youth and high income segment.

Honda CG 125 Deluxe has heavy duty front absorbers and 130 mm brake drum with

environment friendly non-asbestos brake shoes, Elegant contoured seat for better riding

posture. Special designed bigger impressive wheels.

Key Features:

Attractive Fuel Tank with modern graphics

Speedometer with trip meter

Tachometer with Fuel Guage Indicator

Black painted silencer with stylish cover

Front hydraulic disc brakes

Back light with aerodynamic cowl

Stronger and adjustable cushion

Euro2 Technology now with ASV (Air Section Valve)

Due to 5- Gear Transmission more Power on Low RPM

Specification CG-125 - Deluxe :

Engine 4-Stroke OHV cooled by air

Displacement 124.1 cm3

Bore & Stroke 56.5 x 49.5 mm

Compression %age 9.0 : 1

Wheel Base 1278 mm

Starting Kick start

Ground Clearance 136 mm

Petrol Capacity 12 Liter

Tyre at Front 2.75 - 18 42P

Tyre at Back 90/90 - 18 51S

Dry Weight 112 KG

Transmission Continuous 5 speed mesh

Frame Diamond Type Steel

35

Dimension(Lxwxh) 2032 x 758 x 1097 mm

21.1.2. PRICE:

Atlas Honda products are well known due to its quality and reliability.

Company commitment is not to just sale products for profits but

quality which enables us to win the confidents of people and customer

satisfaction.

Following are our prices of our products.

MODEL PRICE

Honda CD 70 Rs. 65900/-

Honda CD 100 Rs. 73900/-

Honda CG 125

Honda CG 125 Delux

Rs. 89900/-

Rs.111000/-

21.1.3. Placement:

36

Atlas Honda has developed Pakistan’s largest after sale services network. The company has

made its 5 S dealers throughout the country.

These 5S stands for

Sales

Services

Spare Parts

Second Hand Exchange

Special Sales (credit)

According to the company these are not the simple selling points but these are the complete

HONDA Company. The company has made Dealer Development Department, which is

responsible for the co-ordination with dealers and training of mechanics.

The year 2010 saw improvement in almost all the major marketing areas. The 5‘S’ dealer

network was further expanded dealers have upgraded their dealerships to a modern, global

standard. The resultant image enhancement in the eyes of the public has generated more

customers for the company. The recall value of the promotion has been rated as one of the

highest ever. This policy has further cemented the value of the product and a greater number

of first time users are now Atlas Honda customers.

COVERS ALL PAKISTAN

Atlas Honda has Pakistan’s biggest sales

network. The company focused all over the

Pakistan, they sale their products by their

authorized dealers.

Delivery System

37

Since Honda Company established, company has given the contract to Saleem Raza Goods

Transports Co. for delivering their products to their sales points. They have very good

relation with the company and they are contributing their best in growth of company.

21.1.4. PROMOTION:

The company focuses on its promotion campaign very seriously. There are several internal

and external programs to increase its sale.

Service Development Department

The company has made Service Development Department, which is responsible for the co-

ordination with dealers and training of mechanics.

The company is mostly using push strategy to promote its motorcycles.

Like CD 100 promotes by following strategy

As CD-100 is their new product to promote it they force the dealers to keep a CD-100

bike with them so that when customers come they offer him to try the new bike.

The company is offering package to dealers that for every ’x’ bikes of CD 70 or CG 125

you have to take “y” bikes of CD 100. This also forces the dealers to try to sell this new

product.

Technicians Training

For the promotion of its products the company has trained 7000 mechanics. These

mechanics are not only providing repairing services to the people but also publicize the

products of company by word of mouth.

For the promotion of its products the company arranges rallies.

Print media

The company is giving different types of commercials on different print periodicals.

38

21.2. Sales:

Types of Sales:

Sales to Customers through Dealer Network

Sales to Institutes through Institutional Sales Network

Exports to Bangladesh, Sri Lanka and Afghanistan.

Market Segmentation:

Middle Middle Class

Middle Lower Class

Customer Type:

Buying Situation First time & Straight Re-buy

Usage Rate High Medium

Purchasing Procedure On cash/Credit

Honda Motorcycle’s positioning with respect to its Competitors:

Honda Motorcycle has brand competition with Suzuki and Yamaha and also with Chinese

Motorcycles.

Competitors:

Major competitors of the organization:

Market always creates competition because there is no restriction for any one, everyone try to

compete other. AHL competitors are:

Dawood Yamaha Motor Company.

Sehgal & company.

Suzuki Motorcycle.

Sohrab Motorcycle.

Chinese Brands:

Ravi, Sthalco, Super Power, Metro, Super Star, Habib, Pak Hero, Super Asia, New Asia etc.

Direct Competitors

Suzuki

39

Yamaha

Chinese & Local Manufactured Motorcycles

Indirect Competitors

Automobile Industry

Target Market Strategy:

Multiple Segment Strategy

Procedure of Sales:

Orders are noted from the retails directly and not from distributors with payment and

are forwarded to Account Section and Sales Office. Then co-ordination is done with Logistics

Department about the availability of motorcycles & trucks and their capacity.

21.3. Service Department:

Main Functions:

Availability of Spare Parts where they are needed

Providing repairing services throughout the country

To server our first customers (dealers)

Asking the dealer to PDI (Pre Delivery Inspection)

Two free checkups are offered to customers

Dealing with warranty claims

Activities:

In-House

Field

Training Period:

7-Days (Honda Service Training Course)

3-Days

1-Day (Refresher Course)

Free Service Camps

21.4. Working of Marketing Department:

To conduct marketing research

40

To identify market potentials

To develop marketing plan

To implement marketing strategies

To communicate and coordinate with the dealers

To search for new dealers

To develop the existing dealers

To look for the new products

To take orders from dealers with the help of territory in charge and regional managers

To conduct promotional activities

To forecast sales

To set targets at the national level, regional level and for dealers with the help of regional

managers, territory in charge and dealers themselves

To coordinate with the production department

To finalize items to be produced each month with the coordination of production planning

a control department

To coordinate with the finance department regarding availability of resources for different

marketing activities

To coordinate with the logistics department for the delivery of motorbikes to dealers

To monitor and control existing dealers

To train 5s dealers regarding provision of service facilities to customers

To educate dealers regarding customer care and customer dealing

21.5. Structure of the marketing Department

Appendix 3

21.6. Brand:

What is Honda?

Honda is an entity that realizes the dreams of individuals and spreads joy to people. Honda's

philosophy, unique corporate culture, pursuit of challenges that fulfill individuals' dreams and

variety of products and activities born of challenges will remain the foundation of the Honda

41

brand. We will continue building on our history of realizing people's dreams.

Honda's Driving Force:

The expectations and appreciation of people around the world for our dreams. People see

Honda as pursuing its dreams and always remaining a step ahead of the world. This image

and the people’s appreciation of our outlook will continue to be the driving force of the

Honda brand.

Honda's Goal in Branding:

To create a brand that is supported by people’s expectations and appreciation.

Global Brand Slogan:

Everyone has a dream, some goal or activity that gives their life a deeper meaning and sparks

passion. When we pursue a dream, we feel empowered. This power, in turn, connects us to

others who share the same dream. It gives us the strength to overcome great challenges and

inspires us to spread the joy of our dreams to others. Ultimately, the power born of a dream is

a creative force, capable of producing revolutionary ideas. Honda encourages all is associates

to pursue their dreams. That is why we say we are a company built on dreams. In the new

century, the power of Honda's dreams will continue to lead new insights and technologies in

automobiles, motorcycles, power products, parts and other fields of mobility that are just

beginning to be imagined. Dreams are the very essence of Honda. The dreams of our

associates, customers, and supporters make Honda what it is today. Our highly original ideas

and free thinking have surprised the world on many occasions. Honda will continue to be

Honda in the 21st century as long as we have our dreams and orignal thinking. We will keep

on dreaming and challenging ourselves to realize our dreams.” What will we come up with

next?” We will continue creating exciting products and realizing people’s dreams and

expectations. Our slogan For Honda to remain Honda, and for everyone to realize their

aspirations, we must believe in "The Power of Dreams".

42

22. Financial Analysis:

43

Year ended March 31 Statement of value

adition

2011 2010

Rs.in’000 % Rs.in’000 %

Value Addition

Net sales

including sales

tax and

special excise

duty

Other operating

income

38,179,4

43

299,337

99.2%

0.8%

29,830,936

239,047

99.2%

0.8%

38,478,7

80

100.0% 100.0% 100.0%

Value

Distribution

Materials and

services

Governement

taxes and duties

EmployeesÕ

remuneration and

benefits

Financial charges

to financiers

Dividends to

shareholders

Profit retained

28,258,5

15

7,050,50

6

1,623,50

1

80,416

500,417

965,425

73.5%

18.3%

4.2%

0.2%

1.3%

2.5%

22,036,212

5,441,704

1,340,864

97,970

353,556

799,677

73.3%

18.1%

4.4%

0.3%

1.2%

2.7%

Total Value

Distributed

38,478,78

0

100.0% 30,069,983 100.0%

23. Introduction of departments:

All departments working independently but with collaboration of other departments each

department head is responsible for his /her department and brief about their department

progress to higher management.

23.1. Logistics Department:

Under vendor improvement Program Company ensure timely supply of raw material; reduce

rejection in parts and ensuring quality under the assistance of quality assurance department.

Improve the sourcing of vendor to make them company strength.

Purchase department control all purchases other than auto (bike) like stationary, kitchen

items, office supplies and all type of purchase but not motorbike or parts related...

Vendor procurement department purchase parts and other auto related parts from local, head

office, and from import. Many parts are manufacture through in-house facility of AHL as

frame body, paint, hub, fuel tank, cylinder head casting, and shocks/cushions of bike in

Sheikupura plant. Fourth department under logistics is dispatch or delivery of finished goods

(motor bike) to the market as required by marketing department. Under this logistic

department control and handle the mobility and transition of company product through

company transport (trucks). The main functions of the AHL can be summarized in the

following ways:

Main Functions:

Vendor Procurement (VP)

Local Purchase

Finished Goods Dispatch

Vendor Improvement Program (VIP)

Out Source Processing (OSP)

23.2. Production Planning Control: This department control overall production, and also planning for future and define the

production level. Coordinate with the marketing department for the production of the bikes.

Defining the items to be procured locally. To conduct warranty claim down meeting for the

44

sake of reducing the warranty claims. To define items to be procured from Honda Japan.

Coordinate with quality assurance department for the maintenance of quality standards. Man

management to mobilize the manpower for the execution of production plan

Production department has three plants:

Assembly Plant:

Engine Plant:

Casting Plant:

Functions:

Issuance of Production Plan

Execution of Production Plan

Forecasting Production on the basis of Sales Forecasting of Marketing & Sales

Department

Target setting in Production daily, weekly, monthly and yearly basis

Synchronization between all the department into meet production targets

Two levels of Planning

i. Macro Level Planning

ii. Micro Level Planning

23.3. Quality Assurance Department: This department assures at Atlas Honda Ltd. that motorcycles here are produced with Highest

Quality and their parts.

This department is dealing four sections.

In Coming & Receiving Unit

Quality Assurance vendor (QAV)

In House Section

Final Inspection

45

23.4. I.T Department: Transition period in it department is going on and company is shifting its entire system from

oracle developer to SAP (system application & products data process. For this purpose

Siemens professionals are implementing SAP modules in head office and providing training

to AHL executives to be familiar with SAP. Without SAP it is difficult for it department to

prepare global reports as per required by our foreign investor Japan. And there are lots of

hurdles to receive timely information. From September 1 SAP will be implemented company

has purchased its 6 modules out of 21 modules. So it will be great transition period in

company’s IT department. AHL’s Lahore and sheikhupura plant is linked with each other

through radio link on one server. So information can be shared on the same time on the same

places. The main advantage of this change is time saving, efficiency enhancing and

generating extra storage for data. Following are the functions of the IT Department:

Main Functions:

Software Development

Troubleshooting

Oracle & Developer 6AI

Windows upgrading & installation

UNIX

Lotus Notes

LAN & WAN System

Use of WAN

23.5. Corporate affairs:

All the company matters at corporate level are handle by corporate affairs department. Like

dealings with manufacturers union (PAMA, Pakistan automotive manufacture association.).

Dealings with government in terms of taxes, import tariffs and other matters etc.

Areas of activities:

Engineering development board:

46

Its facilitates imports and less import duty by fulfilling the SRO (statutory regulatory

ordinance.) and took facility of less duty.

PSQCA:

It controls quality. And standardize it. If any product meets its standards it gives a certificate

for production. And this certificate is required to be renewing after a specific time period.

PAMA (Pakistan automotive manufacture association): All the government affairs are

handled through PAMA. E.g. cost, taxes etc.

Valuation:

Helps to stop misuse of law. E.g. other motor cycle manufacturers imports parts from china

and say them to paste less price tag and take original price from us to save themselves from

taxes. So it was suggested that tax should be on value or import item not on price.

Valuation of parts are done and duty will be according to their assigned value.

23.6. Human Resource Department: HR Department is the most impartment department in any type of organization. It depicts the outer

look as well as inner look to the market about the company operations and image.

HR Department in Atlas Honda Ltd is increasingly invited to participate in strategic planning and

organizational goal setting. It has also becomes involved in personal and career development (to

prevent stagnation and to develop talent), in interpersonal relations (to assure teamwork and accurate

communication), in attending to associates’ needs (to demonstrate the organization’s concern for

them), and in associate participation in work life (to help associates perform at their full capacity).

Objectives:

Meeting Organizational Goals

Developing Future Managers

Major Functions:

Human Resource Planning

Forecasting Human Resource Needs by keeping touch the concerned departments

Competitive Influences

Retaining Employees

Attracting Employees

47

Labor Relations Influences

Balancing Labor & Management concerns

Organizational Structure

HR Analysis

Job Analysis

Staffing

Training & Development

Compensation Management

Employee Evaluation

Employee Movement & Replacement

Polices & Rules

On & Off Timing:

Plant 7:45am ~ 520pm

Head Office 8:20am ~ 5:40pm

Break Timing 1:15pm ~ 1:45pm

For Late Comers:

If less than 30 minutes late (Less than or equal to 4 times in a month), then it is marked as

1 absent.

If more than 30 minutes, then it is marked as short leave

Leave Policy:

Compensation Privilege Leave (CPL) in lieu of working in off day.

Give Rs. 750 for Grade 12

Can get leave in working day

Retirement Policy:

Age: 60Years

What’s give at retirement? 20 grams gold (Gift)

Termination Rate 2%

Resignation Intimation Period (1 month before)

Career Development

High Management System

Grades

48

Job Grade

Personal Grade

Management

Executive Grades: 12 ~ 1

Others: 20 ~ 13

Workers: 0

Minimum time period for promotion in each grade = 2 yrs

Human Resource Planning:

1. Requisition Slip from concerned department

2. Approval

3. Advertisement

4. Develop Application Pool

5. Short Listing of Applicants

6. Test of Applicants (50% marks are required to appear in 1st Interview)

7. 1st Interview (GM of concerned department, Manager HR)

8. 2nd Interview (CEO, GM HR & Admin, Manager Admin & IR)

9. Complete Medical Examination from Shaukat Khanum Memorial Hospital

10. Orientation

11. Complete Personal File

12. Entry in Personnel System

13. Probation Period (6 months)

14. Issue Confirmation Letter

Training and development:

Training need assessment (TNA)

(supervisor suggest training)

Annual training

Training other then TNA (training need assessment)

Benefits:

49

car and motor cycle (grade 11 and above car, grade 12 and 13 motorcycle, grade 15 motor

cycle with installments)

bonuses

gratuity

provident fund

group life insurance

health insurance

personal benefits

compensatory leaves

allowances

personal loan

Performance appraisal system:

PDC (plan, do, check) process is followed for the appraisal system. Plan is done by the

people. Performance is also evaluated with by relative evaluation process. The evaluation

process is as follows.

send appraisal form

self appraisal

set objectives

rationalization of rating with HOD

record HODs comment

post appraisal interview

collection of all forms by HOD

HOD should write a separate note, (if required, recommend salary adjustment)

23.7. Stores Department: The main function of this department is to provide parts, materials and services to

production without any kind delay, and ensuring that there is no stop in production assembly

line of motorcycles in Atlas Honda Ltd.

The second function of this department is to keep record of all the parts and materials, which

are issuing and receiving.

50

Store Department can be classified into six further sections. Which are as follows:

Receiving Section

Issuing Section

Raw Materials Store

General Store

23.8. Finance Department:

This department deals with the financial transactions and financial management of Atlas

Honda Ltd.

This is providing services six different categories.

Sales Taxation

Salary Structure

Inventory

Stores

Machine Tool Costing

Imports transactions

Overhead Transactions

Accounts payables

Financial Feasibility reports

Financial statements

Financial reports

Accounts reconciliation

Machine Costing

Product costing

Inventory Flow costing

Sales taxation

In atlas Sales tax is a department which is working on two type of sales tax the account

manage vendor’s tax on their sale and also manage tax payment on our product sale.

Input sales tax

51

In input sales tax the department has to deduct present rate of sale tax from vendor’s cheque

and Sale tax is claimed by the government

Output sales tax

In output sales tax we have to pay tax on our sales

Withholding tax:

Sales tax department also deduct withholding tax from vender cheques there are two types of

withholding which is deducted on good the department deduct 3.5% on goods and deduct 6%

on supplies

The department reconciles receivable or payable by ‘fBR at monthly

Account payable:

In vendor payment department invoices come from billing department the department have to

verify bill invoice and vendor specific code and enter payment in his account and create

cheque for him. some time department directly paid or directly received payment from

supplier or customer they create three type of voucher for the this purpose

Cash received voucher in this voucher the receive cash against sale of their scrap cash

payable voucher in this type they pay cash to private contractor for their service or good .

Payroll

1. Salaries and allowances

Total attendance received from HR department amount finalized by payroll department

according to number of hours of working in this account the accountant make a voucher on

the basis of bill then bill is signed by finance manager .So I have to enter in computer in SAP

system .over time is also claimed as per grade . Payroll department deduct conveyance ,

medical ,EOBI and also canteen charges from employees salary and also deducted advances ,

Salaries & wages A\c *****

To Bank A\c *****

FOH

Employees who are linked by manufacturing and by production department those salary

expenses enter into FOH by SAP specific code e.g. 5210100

52

Admin

Employees who are linked by Administration department those salary expenses into Admin

by SAP specific code e.g. 5310100

Selling

Employees who are working in regional offices and in head office those salary expenses enter

into selling by SAP specific code e.g.5412000

Bank reconciliation

Bank reconciliation deal with different types of banks in this department Atlas finance system

mostly ,make payments through bank and also receive cash through bank so at the end of the

month department reconcile its balance with the bank it is happened at every end of the

month

24. CULTURE:

Culture is a set of defined values, norms and beliefs that are commonly held among the

members of a particular organization or society.

Culture is not always in the written form, rather this is something to be observed and

watched out with open eye and mind.

How culture develops:

Culture is generally transmitted into new member through

Founders intentions

From the rituals and the stories

From the values its employees held.

And finally it is transformed from one generation to the next one.

Shared Values:

Shared values are the common beliefs held by the members of a particular organization. In

shaping an organizations culture, shared values do play a very vital role and generally

employees are recognized by the values they keep.

53

When we talk about that whether an organization has strong or the weak culture, the key

distinguish parameter is the shared values. If organization values are most commonly shared

among the members of a particular organization than we would say that it has a strong culture

otherwise organization is characterized by the weak culture.

Values are not always the explicit ones, rather when some values are strongly and commonly

shared, than these become as taken for granted and need not to be told again and again.

25. Critical Analysis:

The thing is E-Business organization is not interested to start business through internet

because organization says it is not traditional way of marketing but theory say’s e-business is

the newest way for marketing because it cheapest, timeless and cost less way of marketing

and you can earn and extend your business across international boundaries. Organization

should give importance to marketing department of the organization. Representatives think

that we are market leaders so there is no need of marketing.

Organization should concentrate on greater quality in minimum cost. Because people buy

competitor Chinese brands just because of one reason that is price. So we can increase sales

by price reduction.

25.1. Future prospects of the Organization:

Company wants to provide more facility to their customer and provide better services, for this

purpose company projecting to generate more dealers in different location, company also

targeted their production and wants to make 500000 units this years, and company will try to

achieve target 650000 units next years, and incoming era company will expand its

manufacturing plant to I million units. Company also exporting their bikes in different

countries like Sri lanka, Nepal, Afghanistan etc, company introducing new model in different

CC next year. Company is 14001 certificated from ISO.

54

26. Conclusion & Recommendations:

Conclusion:

Training at AHL is really a true learning experience. Atlas management is striving to

modernize Company operations by adapting applicable aspect of research and theory and

more specifically. It has Not only taught the utilization of bookish knowledge into practical

field but also the ethics of Professional life .AHL is leading ‘motorcycle” manufacturing

company in Pakistan atlas has largest in House manufacturing capability at its Sheikhupura &

Karachi plant .AHL management like to fully Concentrate on kaizen rules .it is japans brand

so they don’t compromise on quality. The internship Remains the magnificence memories for

the reason of AHL’s hospitality & efforts of my seniors to Teach their activities. It would be

helpful in my further studies

Suggestions:

Atlas Honda’s culture is their competitive edge in terms of administration and human

resourse. Company must remove flaws to make it effective for the employees loyalty.

A consideration is required to improve the transport conditions and facility. Small vans

should be replaced by Coasters, which have greater facilitations for employees. And scanners

are installed for time saving. Then why work is done manually. Manual work and scanners

both have increased the time.

Security staff of the plant requires some training about some social values. And how to guide

new comers. How to welcome them.

There should be person incharge of canteen who have degree in hotel management. So that to

increase better facilitation. Canteen facilities should also be improved in terms of crockery

and cleanliness.

The card in/out booths should at every gate instead of specific locations.

55

E.g. some employees from skp inn their card at gate 1 and enters in factory from gate 3.this is

wastage of time.

Today almost every organization is going to conducting e-business by developing their

friendly user, dynamic, attractive in appearance and covering all the aspects of business, web

sites. AHL must develop such web site, which is according to company’s image as a market

leader in motor bike industry and also containing some sections that take directly feedback

from customers about their satisfaction level with our products and in order to enhancement

of product line.

Equality is company’s major characteristic. Providing the same image of equality at all

levels.

There should be increase in frequency of inspection sampling. The production of AHL grew

dramatically during the past few years and the company is now planning to produce more

than 650000 motorbikes for the current year. As production has increased there should be

increase in the number of people involved in the inspection process. Due to increased

production there is a greater level of burden on quality inspectors. By increasing the number

of quality inspectors we can increase the frequency of quality inspection. Due to lesser

frequency of inspection there are greater chances of defective items being produced. This can

have a negative impact in the minds of the customers.

The survival of the two-wheeler automobile business depends on providing quality services

to customers by providing them the quality products. The concept of 5S serves that purpose.

The main vehicle of 5S is our dealer. If they don’t realize in full the spirit of 5S by not having

the belief that sale is the only profit taking activity rather other services like service, spare

parts, special sales and second hand exchange are the services which complement the sale, it

is difficult to satisfy customers. The efforts should be made to realize them the real benefits

of this 5S system since many dealers don’t take serious.

There are number of illicit practices undergoing in the market like under pricing, over

charging, black marketing and supply of fake spare parts. AHL must take steps to make its

dealers abide by its policies to better serve the market.

In future we see great sensitivity for environmental concerns. The paint shop of the Atlas

Honda is excreting the waste, which is not good for the environment. At the moment there is

56

no proper waste treatment system available. There should be a proper waste treatment

system.

This can really elevate the image of the company.

On Friday there is a break from 1:30 pm to 2:30 pm for lunch and to offer the prayer. Time is

sufficient but in such a large group like Atlas Group, there will be a mosque inside the factory

in which all members can offer prayer.

Employee rotation from one department to the other department for handling multiple tasks

and to train them for emerging situations.

Technological upgrading within Short span of time so that plant must to be a strategic

advantage or competitive edge not only in Pakistan but in Asia.

27. My internship:

27.1. SCOPE OF LOCAL PURCHASE DEPARTMENT

TO ARRANGE IN TIME SUPPLY OF LOCAL PURCHASES / SERVICES FOR THE

PLANT RELATING TO FOLLOWING CATEGORIES, SO THAT TARGETS OF ALL

DEPT. / SHOPS ARE ACHIEVED IN ORDER TO ENSURE SMOOTH PRODUCTION.

1. OIL & LUBRICANTS

2. PAINTS

3. TOOLS & HARDWARE

4. PACKING MATERIAL

5. GASES & WELDING ITEMS

6. ELECTRICAL ITEMS

7. COMPUTER & ACCESSORIES

8. STEEL & IRON

9. CHEMICALS / THINNERS

10. PRINTING & STATIONARY

11. UNIFORMS

12. SERVICES SECTOR (ALL AREA).

57

MOREOVER, NEGOTIATIONS AS MEMBER PRICE COMMITTEES FOR PURCHASE

OF MATERIAL AND WORK ORDER FOR NEW PROJECTS ETC.

27.2. LOCAL PURCHASE SYSTEM

PROCEDURE:

1. Initial document for any purchase need will be “Purchase Requisition” (PR) (Ref: LP-0S-

03, pg # 11). All departments shall initiate PR for any item required to be purchased. The

concerned Departmental Head or Manager Operations shall sign the PR, complete

specification (i.e. dimensions, brand name, country of origin, unit & packing standard etc.)

shall be mentioned on PR.

2. Purchase Requisition duly signed by the shop in-charge and authorized and approved by

Departmental Head / General Manager will be submitted to Raw Material Store (RMS).

RMS, after checking the existing stock position shall prepare a system generated PR

Summary (Ref: LP-0S-04 ,Pg.# 12), which shall contain code No. & Qty. of each item duly

signed by Manager Stores.

3. Only Accounts Dept. (with the assistance of I.T Dept.) shall be authorized to generate

code for any new item, which is required to be purchase.

4. RMS will also ensure/ confirm that complete specification i.e. dimension, brand, model,

origin, unit & packing standard of each item is mentioned on PR to eliminate the chances of

wrong purchasing or rejection and delay.

5. At least two quotations (Sample Ref: LP-0S-05, Pg. # 13) shall be obtained from two

different suppliers (registered or un-registered) for general items except proprietary items or

those items, which are available only with the sole Distributor / Agent / Importer /

Manufacturer and customize as per user demanded. (In SAP system called Request for

quotation “RFQ”)

There are few exceptions in which two quotations not required:

- Some suppliers are supplying few items regularly so in such case there is no need

to get 2nd quotation.

- Small value items suppliers i.e, Karyana item, in case of such items they are

purchases from single source, Makro, Metro etc. So in this case 2nd quotation is not required.

- In case of Cash purchases there is no need of 2nd quotation.

58

- When some supplier unable to attend the price committee, in such case his

quotation signed after discussion with him on telephone.

6. Manager Logistics and his team will take all necessary measures to ensure competitive

purchases by:

a) Obtain, check and compare the rates of various parties through

Telephone enquiry, E-mail, Fax, personal visit etc.

b) Visit the market for physical checking of existence as well as reliability

of suppliers. (In SAP system called creates quotation “CR”)

7. After obtaining quotations from various parties, Purchase Dept. shall prepare a System

generated “Comparative Statement”(Ref: LP-0S-06, Pg.#14) System shall Recommend the

party Whose offer is lowest provided it qualifies in terms of specifications and meet the

required Delivery schedule of concerned shop. In case, the lowest bidder fails to qualify &

Show his inability to meet the Delivery Schedule, the next higher bidder will be considered.

(In SAP system Price Comparison List called “PCL”)

8. In case of re-sourcing existing supplier price will be taken as 1st quotation and New

supplier quotation will treat 2nd in such case no need to get new quotation from existing

supplier. We can see the last purchase price in system for verification.

9. In case, all offers do not meet the exact requirement of the user, the matter shall then be

referred to user Dept. for suitability of specification and Purchases shall be made accordingly.

10. After scrutiny of all quotation documents, Purchase Dept. shall submit Indent &

Quotations to a committee called “Price Committee” which will comprise of following

members:

Manager Finance / CFO

Manager Logistics / G.M Supply Chain

Concerned Manager (if needed)

11. Price Committee shall further negotiate price with the lowest bidder and shall ask/know

the justification of price quoted by the supplier (If needed).

59

12. On the basis of recommendation of Price Committee a system generated Purchase Order

(P/O) ( Ref: LP-0S-07, Pg.# 15), shall be issued in favor of the Supplier; the following shall

approve P/O.

For value up to Rs. 500000/-

Jointly by Manager Finance, Manager Logistics & Manager Operations.

For value above Rs. 500001/-

Jointly by G.M.Finance, G.M Supply Chain & G.M.Plant or G.M. of

concerned Dept.

13. Purchase Order shall contain three leaves, distribution of each leaf will be:

- White (Original) = Supplier’s copy

- Blue (second) = Payable section copy

- Yellow (Third) = Finance Dept. (Master record copy)

All goods purchased by the Local Purchase Dept. shall be received by RMS

along-with Delivery Challan of the concerned party. RMS shall then arrange inspection of

goods in terms of quality, quantity and specific requirement of the user’s Dept., already

mentioned in PR and acknowledges the Receipt within 24 hours of receiving.

14. In case of rejection of item or lot, reason of rejection shall be mentioned on RR & Local

Purchase Dept. shall be informed who shall arrange to return the rejected goods to the

concerned supplier’s on proper Gate Pass through RMS.

15. Local Purchase Dept. will receive Supplier’s Bills, which shall be checked & matched

with Purchase Order, Delivery Challan & Goods Receiving Report. After verification Bill

will be passed on to Accounts Dept. along-with copies of Purchase Order, Challan & Goods

Receiving Report for processing of payment.

15. Local Purchase Dept. will try their best to arrange to provide the required items within

shortest possible time. However, Local Purchase Dept. shall ensure to provide items as

follows:

For Normal Indent / readily available items not more than 15 working days.

For Imported items normally 04 ~ 05 months.

Paint / Thinner manufacturing 01 ~ 1 1/2 month

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Printing Items, 03 ~ 04 weeks.

CASH/EMERGENCY PURCHASES:

Practice of Emergency/Urgent purchases shall be discouraged. However, in case of

extreme emergency, G.M. of concerned Dept. or G.M. Logistics shall be authorized for such

purchases and cash purchase limit shall not exceed Rs.20,000/- for any single item. In case of

machinery Break down / Maintenance job requirement, Manager Operations shall authorize such

purchases with consultation of Manager Maintenance & National Manager Logistics

Organization chart: logistics

Appendix 4

Local purchase: system flow

Appendix 5

(source: www.AtlasHonda.com. Procedural manual 2010-2011. ISO manual)

27.3. PURCHASE OF CAPITAL GOODS

The Procedure for purchase of items of capital nature shall be as follows.

1. Request shall be raised by the user Department. Manager of the concerned Department on a

standard form titled “CAPITAL EXPENDITURE REQUEST” and called CP-1 (Ref: LP-0S-

08, Pg.#16), shall initiate purchase, mentioning details of the purchase and estimated

expenses along with its justification. CP-1 (Ref: LP-0S-08, Pg.#16) form shall then be sent to

Accounts Department duly Recommended by Head of the Department / G.M.

2. Accounts Department shall analyze the CP-1 (Ref: LP-0S-08, Pg.#16) with regard to Budget

Provision & expenses made so far, against Budgeted amount.

3. CP-1 duly verified by CFO shall then be sent to CEO for final Approval.

4. Concerned Department shall then raised PR to RMS from where compile P. R. statement

shall be made and handed over to Purchase Department along with CP-1 (Ref: LP-0S-08,

Pg.#16) duly approved by CEO.

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Item-wise financial limits of Approving authorities shall be as follows, provided it is included

in the Budget.

I t e m s. Approving Authority

Cars under Company policy GMF / GMHR

Motorcycles under Company policy GMHR

Replacement items & other items not CEO/GEC

Exceeding a value of Rs. 1,000,000 per item

Any item other than above GEC

Purchase Department shall then proceed with procurement action in accordance with the

procedure laid down for general items.

Record Keeping:

Record maintained in Purchase department usually kept for one year, after one year the same

transferred to record room.

28. Working specimens

Perchase requisition (appendix 6)

Quotation (appendix 7)

Perchase order (appendix 8)

Comparison statement (appendix 9)

FINISHED GOOD DISPATCH SYSTEM:

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PROCEDURE:

After production of motorcycle from assembly line ,final inspection staff of quality assurance

department checks these and in case of no fault (ok) a green sticker is put on the back light

cover of each motorcycle. If some rectification is required the same are separated for re-work

immediately or at later stage depending upon the nature of re-work

All O.K. motorcycle are then handed to over logistics department for onward delivery to sales

dealers .these ok motorcycle are shifted into finish goods stores which is maintained by

logistics dept while executing physical dispatch of motorcycle logistics dept ensures that

F.I.F.O(first in first out)system is followed except special deliveries i.e institution etc.

PROCESS:

Major steps involved in finished goods dispatch process include.

Fleet and stock information

Allocation from sales dept.

Summarize delivery data into bar code scanner

Physical bar coding of motorcycles as per delivery order.

Handing over of m/c to the transporter’s rep. as per truck capacity.

Transfer bar coding data into delivery system.

Print out of delivery orders/gate passes with engine & chassis nos.

Signing authority of delivery order/gate passes.

Distribution of delivery order/gate pass.

Issue of motorcycle accessories.

FLEET & STOCK INFORMATION:

Daily movement of trucks is monitored by the logistics dept. through a report called “Truck

Movement Report”, however physical availability of finished goods truck is also confirmed

from the transporter on telephone in the morning on daily basis. The same is communicated

to representative of National Sales Manager at AHL, Lahore.

The same time tentative availability of Deliverable Stock (model-wise & color wise) is also

conveyed NSM office LHR, where stock is distributed among different regions and

instructions are passed-on to logistics as well as regional sales managers accordingly.

ALLOCATION PROCESS:

Logistics dept manages to obtain online dealer-wise allocation from the Regional Sales

Offices, on the bais of distribatuon of stock by NSM office & availability of “ready for

delivery” stock.

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Sales dept hand over system (SAP) generated allocations as per trucks capacity to logistics

dept.

SUMMARIZE DELIVERY DATA INTO BAR CODE SCANNER:

Delivery data (i.e. dealer-wise, model-wise & color-wise quantity) is then entered into

“Delivery System” which is summarized/loaded into bar code scanner and bar code list is

generated by the system.

Print out of bar code list is obtained for cross-checking of dealer0wise Qty, model & color

with allocation.

PHYSICAL BAR CODING OF MOTORCYCLES:

In order to bring time efficiency in delivery and to eliminate possible human error in

reading/writing of engine & chassis nos. of m/cs, bar coding system is used.

Engine & Chassis no. of each motorcycles are scanned, these are handed over to the

representative of the transporter for physical inspection prior to loading into delivery trucks.

The transporter keeping into mind town-wise locations arranges truck-wise loading.

HANDING OVER OF M/Cs TO THE TRANSPORTER:

As soon as motorcycles are scanned, these are handed over to the representative of the

transporter for physical inspection prior to loading into delivery trucks.

The transporter keeping into mind town-wise locations arranges truck-wise loading.

TRANSFER BAR CODING DATA INTO DELIVERY SYSTEM:

Data scanned into bar code scanner is then transferred into delivery system (SAP) where

particulars of motorcycles are posted in system as per bar code list and complete delivery

order/gate passes are generated through system.

SIGNING AUTHORITY OF DELIVERY/GATE PASSES:

Dealers accounting of accounts dept is authorized to sign all delivery order/gate passes before

physical delivery of motorcycles, so system generated signature are automatically pasted on

delivery orders from accounts dept.

Only authorized persons from logistics department can sign delivery orders/gate passes.

DISTRIBUTION OF DELIVERY ORDER/GATE PASSES:

Once Logistics incharge or authorized person signs the delivery order/gate passes,

transporter’s representative also sign the same and copies are distributed as follows:

1. White copy (original) --- customer copy to dealer

2. Pink copy --- acknowledgement

3. Blue copy --- gate office copy

4. Green copy --- sales & godown copy

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ISSUANCE OFMOTORCYCLE ACCESSORIES:

Dispatch section receives accessories from CKD stores through IR by Production department.

Following accessories are handed over to the transport along with each motorcycle.

Back view mirror

AGS battery (dry)

Standart tool kit

Free warranty & service card

Owner manual

Delivery truck finally leave the factory gate after security staff duly checks it and found all

stocks and documents complete.

BILLING OF TRANSPORTER:

Dispatch section receives Transformers bill, which shall be checked & matched with deliver

orders receipts. After verification, bill will be forwarded to account department for processing

of payment.

REPORTS OF FINISHED GOODS:

All the reports are system based which are prepared on daily & monthly basis to analyze and

review.

(Specimen attached)

Stock position report --- daily updated on system

Daily activity report ---- daily updated as per receipt & dly of m/cs

Finished goods dispatch --- daily updated as per allocation from sales dept.

Dispatches v/s. delivery plan --- weekly updated for review of previous week

Month-wise & annual (cumulative) reports are also compiled on the basis of above reports for

review.

RECORD KEEPING:

Main areas of record keeping are as under:

Proper filling of sales godown copies and acknowledgment copies of delivery orders having

signature and stamp of dealer forwarded kept for one year with logistics department and more

than one year record kept in record room.

Daily entry of delivery order (truck wise) in register for verification of bills.

(source: www.AtlasHonda.com. Procedural manual 2010-2011. ISO manual)

65

29. Bibliography

Atlas Honda. (n.d.). Atlas Honda. Retrieved from Honda Pakistan: www.atlashonda.com

Atlas honda managment. (2010-2011). Annual report. Sheikhupura.

Auto Market. (n.d.). Automarket. Retrieved from Automarket: www.automarket.com

Company Atlas honda. (2011). manual of working. sheikhupura.

Persons Inquired

Mr. Sohail Qiaser (national manager logistics)

Mr. Ahmed Ali (manager logistics)

Mr. Sayyad Sikander Raza Zaidi (Assistant manager logistics)

Mr. Faheem Dowood (executive logistics)

Mr. Abdul SATTAR (system officer logistics)

Mr. Muhammad Farhan Baber (executive logistics)

Mr. Hussnain Nasir (system officer SAP purchase)

Mr. Munir Ahmed siddiqi (Incharge camshaft manufacturing engine plant)

66

Appendixes: Appendix 1: organizational structure

67

C.E.O

Production

H.R

Engineering

Logistics

I.T

Finance

Marketing

I. Sales

Services

S. Parts

Sales

DD & CC

V. I .P

F. G. D

Local Purchase

V. P

Out Source process

Welding

Frame Assembly

Paint

Industrial Relation

Human Resources

Appendix 2: quality assurance chart

IN-HOUSE ORGANIZATION

Appendix 3: marketing structure

68

MANAGERMANAGER

SECTION MANAGERSECTION MANAGER

ASST. MANAGERASST. MANAGER

INCHARGE “A”SHIFTINCHARGE “A”SHIFT INCHARGE “B” SHIFT

INCHARGE “B” SHIFT

ATOATO

INSPECTORSINSPECTORS

C.E.O

G.M

V.P

Marketing

N.M

CC & DD

N.M

I. Sales

N.M

S. Parts

N.M

Services

N.M

Sales

R.M

Lahore

R.M

Faisalabad

R.M

R. Pindi

R.M

South

R.M

Multan

R.M

Lahore

R.M

Faisalabad

R.M

R. Pindi

R.M

South

R.M

Multan

R.M

Lahore

R.M

Faisalabad

R.M

R. Pindi

R.M

South

R.M

Multan

R.M

Lahore

R.M

Faisalabad

R.M

R. Pindi

R.M

South

R.M

Multan

R.M

Lahore

R.M

Faisalabad

R.M

R. Pindi

R.M

South

R.M

Multan

Under Each R.M

A.M A.M A.M A.M A.M

Appendix 4: logistics dept, organizational chart:

69

70

Appendix 5: local purchase system flow

Apppendix 6: perchase requisition

71

Appendix 7: Quatation

72

Appendix 8: Perchase order

73

Appendix 9: comparison statement

74