management report on hpml

Iqra UniversityIqra University

Gulshan CampusGulshan Campus

Submitted to:

Ms. Ambar Raza

Dated: December 5, 2008

Submitted by:

Sheema Raza – 12936

Sheraz Hussain –

Sidra Moin – 2817

Mona Sakhawat –

Naima Maniar – 2462

Shehla Ejaz – 12247

FOREWORD

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The findings essentially highlight all management functions being practiced at Hinopak with some recommendations in the end, as desired by you. Moreover, this report also reflects the impact of the crude industry of the commercial vehicles on the management decisions of Hinopak. The basis of this report has been company promotional material, company website and necessary inputs from few existing managers.

We are grateful to you (course facilitators Ms. Amber Raza) for providing us insightful guidelines and essential concepts regarding major features of management that really worked like a catalyst to materialize this report. We may not also forget the courtesy, knowledge, guidance and great piece of co-operation from management of Hinopak Motors Ltd. We are also much obliged to Mr. Azher ul Ehsan, D.G.M Engineering & Development Division, Mr. Syed zafar Ali, D.G.M Production Division, Mr. Mehmood Ahmed Khan, Manager Technical & Product Compliance for being so instrumental in their value added guidance, whenever needed, while shaping up this report.

Although we left no stone unturned to have an exhaustive study and prepare a comprehensive report on the said topic. Nevertheless, we would be glad to furnish any additional information or supporting documents to further clarify your queries in the report.

Dear Madam, the report is strictly confidential and most of it should not be copied or reproduced without prior permission of HinoPak Motor Company Limited.

We hope that the report prepared is up to your expectations and look forward to the same kind of support and valued guidance from you in future.

Sincerely,

Sheema Raza

Sheraz Hussain

Sidra Moin

Mona Sakhawat

Naima Maniar

Shehla Ejaz

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CONTENTSEXECUTIVE SUMMARYCOMPANY PROFILE

COMPANY'S HISTORY HPML MARKET SHARES HPML SHARE HOLDING MARKET SHARE IN DIFFERENT CATEGORIES

PRACTICE TO IMPROVE PROCESS EFFICIENCY

To avoid 3Ms KAIZEN 5S ACTIVITIES BCG GROWTH-SHARE MATRIX PORTFOLIO STRATEGY

APPROACH

GOAL FORMULATION & PLANNING

PLANNING PROGRAM MISSION VISION MILESTONE OBJECTIVES GOAL FORMULATION DEVELOPING STRATEGIES

Increase of sales volume Smooth introduction of the new model

series Cost reduction Profitability of Body Manufacturing Plant Enhancement of after sales service Enhancement of quality assurance Promotion of zero accident minds among

all fellows Safety hazard

ORGANIZING

ORGANIZATION STRUCTURE DECISION MAKING APPROACH & STYLE ORGANOGRAM TYPES OF DEPARTMENTALIZATION VERTICAL CO-ORDINATION DEPARTMENTALIZING

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ORGANIZATIONAL FUNCTION

FINANCIAL PROJECTIONS

BUDGET PLAN OPERATING RESULTS SALES REVENUE GROSS PROFIT DISTRIBUTION AND ADMINISTRATIVE EXPENSES OTHER INCOME & EXPENSES CAPITAL EXPENDITURE CASH FLOW STATEMENT OF VALUE ADDITION DISTRIBUTION OF VALUE ADDITION SOME FINANCIAL HIGHLIGHTS OPERATING PROFIT TOTAL ASSETS SHARE PRICE CLOSING EARNING PER SHARE INVESTORS INFORMATION

LEADING

MOTIVATION COMMUNICATION

Methods used for communications Meeting Importance of communication in

organization

DISCIPLINE GROUP DYNAMICS

Situations in which groups are superior to individuals

Groups are performed better than individuals

CONTROLLING

FEEDBACK MECHANISM CONCURRENT SYSTEM CONTROL MECHANISM WORK PLACE PRIVACY AND WORKPLACE VIOLENCE TOTAL QUALITY MANAGEMENT INVENTORY CONTROL INTRODUCING ERP ISO IMPLEMENTATION

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INTERNAL AUDITING

CONCLUSIONS & RECOMMENDATIONSGLOSSARYOTHER REFERENCESAPPENDIXES

EXECUTIVE SUMMARY

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Hinopak Motor Limited has been a market leader since 20 years. In 2007, with the market share of 56% it became the most sought vehicle company in the country. Hinopak's Market share stands at 76% in busses, 65% in heavy trucks and 49% in light duty truck, which clearly shows that it out beats all other companies in the country. Backed by Hino's expertise Hinopak has achieved standard of quality and excellence that rival the best in the region. With over 39,000 vehicles on road, Hinopak has gained 65% market share making it the largest manufacturer in medium and heavy-duty truck and bus industry in Pakistan.

The gross profit increased to Rs. 1,388 million from last year's Rs. 835 million. The distribution and administrative expenses increased to Rs. 409 million from Rs. 308 million. The net increase in cash and cash equivalent was Rs. 300 million. The year thus closed with a positive cash balance of Rs.156 million. The selling prices of vehicles are rising and "Deletion" because of falling value of the rupee against dollar and yen.

Total Customer Satisfaction, is a set vision for the company. Total Quality Management or TQM is a philosophy of management driven by continual improvement and responding to customer needs and expectations.

Hinopak by utilizing its MIS system controls and keeps track of raw materials inventory, work – in – process inventory and finished goods inventory. Just in time (JIT) approach is preferred to eliminate all sources of waste, including any activities that do not add value by focusing on having the right part at the right place at exactly the right time.

Hinopak is the only automotive company in Pakistan and the first Hino affiliate world wide to receive the ISO 9001 certificate.

Hinopak is Pakistan’s first automobile company to export its buses to Middleast and African countries. The company is in the process of negotiation with Hino Japan that Hinopak will be made the center of all Hino export to Algeria, U.A.E. and other African countries by 2010.

In order to keep the checks and balances, to avoid errors and to detect frauds, the company has an internal auditor, whose responsibility is to make sure that the controls are implemented at all levels and there is proper segregation of duties and no teeming or lading takes place.

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Although Hino Pak is meeting the production targets, lack of support form the government is creating problems in the efficiency of the company Hinopak backed by Hino Japan has designed a CNG bus suited the operating conditions in Pakistan. But lack of support from government makes it difficult to practice. Even though Hinopak Motors Ltd. is a well-managed organization there is still some span for improvement. The company will have to make its decision making and managerial practices more clear and transparent. A trace of double standards during hiring, promotion and foreign trainings ought to be faded out to truly motivate the employees and retain the potential employees of the company. Moreover, structure of the company is to be lined up in such a way that the work channel and communication channel should not affect the pace of the work.

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COMPANY PROFILE

COMPANY'S HISTORY

Hino Motors Japan and Toyota Tsusho Corporation in collaboration with Al-Futtaim Group of UAE and PACO Pakistan formed Hinopak Motors Limited in 1986.

In 1998, Hino Motors Ltd., and Toyota Tsusho Corporation obtained majority shareholding in the company after disinvestments by the other two founding sponsors. This decision to invest in Hinopak at a time when the country's economy was passing through a depression and the sale of commercial vehicles was at an all time low reflects the confidence our Principals have in our company and their commitment to the Pakistani market. Hinopak is the trusted market leader with over 65% share in the Pakistani Truck and Bus industry. Hinopak a vital contributor in saving of foreign exchange is also providing jobs and plays a pivotal role for the development of the local industry through its progressive manufacturing.

By continuing to move forward and staying alert to the ever-changing market & social needs, Hinopak will continue to be a successful and respected corporate citizen of Pakistan, reflecting their commitment and belief in the Hinopak corporate philosophy to "contribute to the development of a more prosperous and comfortable society by providing the world with a new set of values".

Hinopak Motors Limited assembles, manufactures and markets world renowned Hino diesel trucks and buses in Pakistan. The Company has held the top position in the domestic market for medium and heavy-duty vehicles for 17 consecutive years and is highly acclaimed for quality and technological excellence.

Backed by Hino's expertise Hinopak has achieved standard of quality and excellence that rival the best in the region. With over 39,000 vehicles on road, Hinopak has gained 65% market share making it the largest manufacturer in medium and heavy-duty truck and bus industry in Pakistan.

Hinopak's product range has been designed and built in Hino's traditions of automotive excellence to be the leader in its category and the main emphasis has been given to passengers' safety & comfort.

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HPML MARKET SHARES

HPML SHARE HOLDING

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Hino76%

TTC13%

Public11%

MARKET SHARE IN DIFFERENT CATEGORIES MARKET SHARE IN DIFFERENT CATEGORIES

PRACTICE TO IMPROVE PROCESS EFFICIENCY

To avoid 3Ms:

Muda Waste

Mura Unevenness / Waviness

Muri Overburden / Impossibility

Muda(Waste)

Muri(Overburden)

Mura (Unevenness)

Wastage of Material, Time, Energy,

Equipment, Human Potential etc.

Pushing a Person or a Machine beyond

Natural Limits

Some time there is more work and some time its less then a

person or a machine can handle.

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Bus

Truck

KAIZEN:

The Japanese term for Continuous Improvement is kaizen and is the process of making incremental improvements, no matter how small, and achieving the lean goal of eliminating all waste that adds cost without adding to value. Kaizen teaches individuals skills for working effectively in small groups, solving problems, documenting and improving processes, collecting and analyzing data, and self-managing within a peer group. It pushes the decision making (or proposal making) down to the workers and requires open discussion and a group consensus before implementing any decisions. Kaizen is a total philosophy that strives for perfection and sustains Toyota Production System (TPS) on a daily basis.

5S ACTIVITIES:

"Implementation of 5S Activities to acquire a Neat & Clean environment which gives Higher Productivity, Fewer Defects, and a safer execution"

BCG GROWTH-SHARE MATRIX PORTFOLIO STRATEGY APPROACH

A corporate portfolio matrix, such as the BCG matrix can be a useful strategic management tool. It provides a framework for understanding diverse businesses and helps managers establish priorities for making resource allocation decisions.

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Below is the BCG portfolio categorization done on the basis of the knowledge of current business situation pertaining to each product:

GOAL FORMULATION & PLANNING

PLANNING PROGRAM

Company’s Mission & Vision have been set by the top management with some inputs from the principals and senior managers. Company’s Vision and Mission statements are:

MISSION

"The mission of Hinopak Motors Limited is to provide the society with safe, economical, comfortable and environment friendly means of transportation by manufacturing and supplying commercial vehicles and services".

VISION

“Total Customer Satisfaction, is a set vision for the company. In pursuit, new concepts have been introduced such as a mobile workshops, 3S/2S dealership facilities, and training and free service camps for the vehicle owners and drivers”.

MILESTONE

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“Hinopak is Pakistan’s first automobile company to export its buses to Middleast and African countries”.

After successfully establishing itself as the market leader at home, Hinopak proceeded to explore its product potential for the export market. This entry into the export market was an important milestone for Hinopak and lead Pakistan into an exciting new era for the automotive industry, fulfilling Hinopak’s commitment towards the economic growth of Pakistan.

The company is in the process of negotiation with Hino Japan that Hinopak will be made the center of all Hino export to Algeria, UAE, and other African countries by 2010.

Other milestones are;

To secure strong No. 1 position in Pakistan

Defeating UD, Isuzu, Chinese and European

To achieve Hino global standard quality

To reorganize 3S network and modernize sales

To function as export base of bus and truck for

Middle East, Africa and Central Asia

To diversify into new business

OBJECTIVES

GOAL FORMULATION

Goals provide the direction for all management decisions and actions and form the criterion against which actual accomplishments are measured. Goal setting approach in Hinopak is traditional type; however, in various departments like Marketing, Finance and HR, senior managers also use the MBO approach for setting annual goals to motivate the employees and make them participative, productive and get the ideas out of them.

A Traditional Goal setting approach includes:

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Reviewing the organization’s missionEvaluating available resourcesDetermining the goals individually or with input from othersWriting down the goals and communicating them to all who need to knowReviewing results and whether goals are being met

The Management by Objectives (MBO) approach used in various other departments of the organization refers to a system which integrates key managerial activity manner and is directed towards efficient and effective achievement of organizational and personal goals. The MBO process consists of five steps:

Review organizational objectivesSet worker objectivesMonitor progressEvaluate performanceGive rewards

DEVELOPING STRATEGIES

When it comes to developing strategies, we would recommend that the company should now start focusing on something that is a mix of both long term and short term strategies, reason behind the environment they are currently competing is a very dynamic one and to back their long term strategies / goals they need some intermediary heads that can assist them in achieving the overall objective.

This can only be possible if the top management commitment and concern is there and they enforce the same to the bottom. In case the market dynamics start effecting the long term strategies the top

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MANAGEMENT FUNCTION

SETTING GOALS

Strategic

5 Years Tactical

1~2 Years

OperationalLess than 1

Year

management should be well equipped and should be in a condition to take remedial measures / steps to overcome these challenges at a very fast pace.

In addition to the above middle and low level employees are there to implement the dreams & visions of the top management into execution.

They need to inculcate a culture of a learning organization before they step forth with any future plans as this is the most basic ingredient in the success of any company and an ingredient that is very much missing from the current practices.

They targets set should not be virtual but should be both achievable and acceptable by all and from top to bottom everyone should be inline with the same objectives and work in liaison to achieve the same.

They also need to set proper performance benchmarking standards so as to reward the ones who perform and identify the weak links out. What this will do is that it will promote an environment of continuous learning and competition within the team, due to which everyone will try to the optimum level to achieve the best for both themselves and the company. (Ref. Annexure-A, Corporate Objective 2008)Increase of sales volume:

Promotion of direct salesEnhancement of demand generating/proposal type businessUTS business (top sales) : 150 units/yearPromotion of export bus business: Bangladesh, UAE etc.Tender business - government, UN, armed forcesRevision of dealer policySales expansion by strengthening 3S Preparation for export of bus and truck

Smooth introduction of the new model series

Increase of variety of models (Junior Dutro, high powered Dutro and others)Development of HMPL version models (modified PM and others)Local parts procurement to satisfy ISDP standardEnhancement of purchasing to comply with multi-sourcing

Cost reduction

Reduction of losses by leveling of production schedule

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Reduction of direct manpower cost by TPSEnhanced MIS - introduction of corporate wide LAN and various software to support operations.Introduction of total cost control by modelReduction of total stock (CKD kit total stock 4 months, synchronization of local parts with CKD kit etc.)

Profitability of Body Manufacturing Plant

Improvement of body finish qualityProduction planning aiming at levelingTotal revision of product quality and inspection procedures

Enhancement of after sales service

Establishment of new 3S and 2S dealersRevision of parts sales policyTechnical training prior to every new model introductionProcurement of spare parts for new modelEnd User service facility through free service campsDealer/user training utilizing new training facilities

Enhancement of quality assurance

Improvement of quality (local parts, body and completed vehicle)Establishment and spiral-up of ISO14000 EMS activitiesContinuation of ISO9001 EMS activities

Promotion of zero accident minds among all fellows

Safety hazards

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ORGANIZING

“It is the process of creating framework for developing task, obtaining and allocating resources and co-coordinating work activities to achieve goals. “

ORGANIZATION STRUCTURE

Chairman

Managing Directing

Deputy Managing Director

Functional Directors

Senior General Managers / General Managers

Departmental Heads

Executives / assistants / coordinators

Section In-charges

DECISION MAKING APPROACH & STYLE

Most of the times decisions taken by the management of Hinopak are result of a blend of rationality and intuition. Managers use the historical trend they learned from their experience in the past to cope with the problems, culture of the Hinopak and their skills and understandings. At top level, it’s analytical, as they take their time carefully weighing alternatives and consider riskier options while at middle level it’s more of behavioral and directive while at lower level its purely directive.

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ORGANOGRAM

TYPES OF DEPARTMENTALIZATION

Production DepartmentOrganization has two main operation plants for vehicles manufacturing which are separately located. Divisions of plant are based on assembling and manufacturing.

Assembly Operation PlantAssembly operation plant is operation division for the Chassis assembling and sub-assemblies only. Body Operation PlantBody operation plant is operation division for the manufacturing of bus, truck bodies’ and related parts which re required during assembly of chassis and its sub-assemblies. Engineering & Development

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Chairman

MD & CEO

DMD

Finance& MIS

Sales & Marketing

Personnel & Admin

Material Operations

DirectorDirector

Product Support

146

27

34

Assembly Operations

Plant

BodyOperations

Plant

Design & Development

Quality Assurance

Director

82

311

801

14

83

61

Total Strength of HPML 1559

Engineering and development department is separate division for introducing & developing the new model of vehicles with new technologies & facilities.

Quality Assurance DepartmentQuality Assurance Department is for assuring the all activities during operation and assemblies

Marketing Department

Marketing Department is the searching engine for the firm which put orders form customers also is for the sales of product in market

Finance DepartmentFinance Department for accountability of overall performance of production, as well as sales and profitability of the Organization

Material OperationsMaterial operation department is for providing all required material at time of operation to the production department also complete monitoring and controlling of material management

Personnel & Administration

Personnel & Administration is for monitoring over all productivity of plant with work man force and facilitate the manpower

VERTICAL CO-ORDINATION

Span of management

Decentralization

The Delegation Process

Preparing

Planning

Discussing

Appreciating

E-Managerial Business Communication

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DEPARTMENTALIZING

ORGANIZATIONAL FUNCTION

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FINANCIAL PROJECTIONS

BUDGET PLAN

OPERATING RESULTS

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SALES REVENUE

The sales revenue in the year increased by 22% to Rs.7,827 million from Rs. 6,392 million in 2006.Most of it, around 76%, came from the sale of chassis.

GROSS PROFIT

The gross profit increased to Rs. 1,388 million from last year's Rs. 835 million. The increase in chassis gross profit is in line with the increase in sales volume. The steady value of the Japanese yen in the first three quarters of the year helped gross profit from bus and truck chassis to rise. Larger production reduced the cost per unit and higher value-added specialized vehicles were produced than in any previous year.

DISTRIBUTION AND ADMINISTRATIVE EXPENSES

The distribution and administrative expenses increased to Rs. 409

million from Rs. 308 million due to:

Investments made in 3S dealership network Publicity launched to promote new modelsGeneral inflation and normal increments in salaries and wages.

OTHER INCOME & EXPENSES

Income from short term investments decreased by Rs.16 million due to lower liquidity. A net exchange loss of Rs. 31 million was recorded in fair value adjustment on forward exchange contracts made to hedge the exchange risk.

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CAPITAL EXPENDITURE

The Company is continuously making investments to improve the capacity, technology and safety of its plants especially the Body Fabrication Plant. The expense incurred on this account during the year was Rs. 117 million.

CASH FLOW

The cash income from the operating activities was Rs. 542 million of which Rs. 117 million were invested in capital goods and Rs.130 million paid in dividend to shareholders. The net increase in cash and cash equivalent was Rs. 300 million. The year thus closed with a positive cash balance of Rs.156 million.

STATEMENT OF VALUE ADDITION

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DISTRIBUTION OF VALUE ADDITION

SOME FINANCIAL HIGHLIGHTS

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(Ref. Annexure-C, Capital Budget Expense of E&D Department 2008)

(Ref. Annexure-D, Manufacturing Budget Expense of E&D Department 2008)

LEADING

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“ The process of using influence to motivate others towards accomplishment of goals. “

MOTIVATION

There are several factors for motivations of employees

Medical policy

Traveling policy

Retirement policy

Promotion policy

Safety & health policy

Employment welfare and benefit policy

To enhance or encourage highly effort performance

Performance appraisals

Trainings & developments (Employees , community,

customers/vendors )

Performance & Statutory Bonus/Cash awards

Special Salary adjustment

Late sitting allowance

Leaves encashment

Recreational activities

COMMUNICATION

Communication is the process of sharing our ideas, thoughts, and feelings with other people and having those ideas, thoughts and feelings understood by the people we are talking with. Communication is a process, by which information is exchanged between individuals through a common system of symbols, signs or data.

Structure of the company is to be lined up in such a way that the work channel and communication channel should not affect the pace of the work.

The key element is “understanding”. Hinopak is using chain of command is from top to bottom.

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Methods used for communications

Electronic mail

Voice messaging

Faxing

Teleconference and video conference

Inter departmental memorandum

Meeting

Before the meeting: Plan the meeting: time, people, items to be discussed Prepare materials.

During the meeting Start on time. Cover most important topic first. Promote a professional atmosphere. Collect idea of everyone. Must have final decision. End on time.

After the meeting: Distribute copies of minutes. Follow up on decisions made

Importance of communication in organization

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Everything a manager does involve communication.The success of an organization is built upon effective communication.

DISCIPLINE

Discipline, rules and regulations are most important for any organization. Hinopak is strictly following the discipline and for the awareness of this it is conducting trainings programs also.

High quality worker performance form is used to evaluate

the worker performance which is based on plan verses

actual.

Accountability on Rules & Regulations standards breaking

Workers behaviors are accountability at time of start their

work with all safety measures and using all stuff throughout

the day and kept at their defined places at the time of

leaving their places with cleaning of machines.

Late arrival of workers as well as managerial staff.

GROUP DYNAMICS

Groups are more useful for organization as for good for people. It can improve creativity, can make better decisions, can increase commitments to action, can help control their members, and can help offset large organization size.

Situations in which groups are superior to individuals

When there is no clear expert in a particular problem or

task.

When problem solving can be handled by a division of

labor and the sharing of information.

When creativity and innovation are needed.

Groups are performed better than individuals

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Hinopak is comprises of some groups to get better performance, opinion from people (employees, vendors, and suppliers). There is some group are performing for different causes which are;

CSR CommitteeTask Committee Health and Safety CommitteeDay to Day Operation Committee

CONTROLLING

“Process of monitoring and regulating the organizational activities”

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Determine

areas to Control

Establish Standards

Compare Performance

against Standards

Take Corrective action as

Necessary

Standards not Met

Standards Met or Exceed

Recognize Performance

Measure Performance

Adjust Standards and Measures as Necessary

FEEDBACK MECHANISM

Both middle and top management agree upon innovative feedback, procedures and services provided to the customers. Different tests and approaches are implemented in this regard like customer evaluation forms, customer feed back, marketing and promotional activities, periodic changing in products and product range to ensure best quality product is available in the market.

CONCURRENT SYSTEM

Hinopak controlling system is dominated by feedback controlling system. However one may find a touch of concurrent control system

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as well. Product support department collects the inputs of the customers’ complaints through a PIR (Product Improvement Request) and QPR (Quality Problem Request) system.

(Ref. Annexure-E, QPR-Quality Problem Report)

CONTROL MECHANISM

WORK PLACE PRIVACY AND WORKPLACE VIOLENCE

To avoid any negative activities through email system, MIS department keeps track of the emails being sent across and websites being visited (especially on Saturdays). Few video cameras are also installed in some critical production areas and security areas.

TOTAL QUALITY MANAGEMENT

Total Quality Management or TQM is a philosophy of management driven by continual improvement and responding to customer needs and expectations.

Through TQM, Hinopak is not only focused on the final product but also concerned about how the company handles deliveries, how rapidly it responds to complaints, how politely the phones are answered and the like.

Hinopak utilizes statistical techniques to measure every critical variable in the organization’s operations. These are compared against standards or benchmarks to identify problems, trace them to their roots and eliminate their causes. Statistical process control uses periodic random samples taken during actual production to determine whether acceptable quality levels are being met or production should be stopped for remedial action.

INVENTORY CONTROL

Hinopak by utilizing its MIS system controls and keeps track of raw materials inventory, work – in – process inventory and finished goods inventory. Just in time (JIT) approach is preferred to eliminate all sources of waste, including any activities that do not add value by focusing on having the right part at the right place at exactly the right time.

INTRODUCING ERP

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Hinopak has recently practicing ERP on ORACLE. Oracle offers advanced analytic capabilities for automotive providing business intelligence, decision support, global compliance management and feedback from customers.

ISO IMPLEMENTATION

Hinopak is the only automotive company in Pakistan and the first Hino affiliate world wide to receive the ISO 9001 certificate. This certificate has been given to Hinopak for implementing and maintaining a company wide quality system in:

The Assembly and Progressive Manufacturing of Commercial Vehicles Management Project Engineering Design Development Purchasing Production Marketing Quality Management

To the uninitiated, ISO 9001 certification may be considered a vital marketing tool exclusively for promoting exports. In fact, the ISO 9001 requirement is as valid for the domestic customer as it is for the overseas clientele. What is important for each customer is the assurance that the products and services being offered are in accordance with predetermined quality standards

INTERNAL AUDITING

In order to ensure compliance with the company policies by all departments / staff, the company has a full-time internal auditor. The internal auditor responsible for carrying out surprise and routine audits anywhere in the company and inform top management about the state of policies & procedures compliance. The company has a very strict financial controlling system. Each department is answerable for its Profit/Loss account which is compiled every quarter. Inter-departmental transactions are also Debited / Credited to ensure efficiency and accountability.

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Employees’ bonuses, incentives and perks are also hedged with Company’s performance. This also ensures that all employees work towards Company’s profitability with all sincerity. This also helps in maintaining Goal congruence and avoiding dysfunctional behavio

CONCLUSIONS & RECOMMENDATIONS

Although Hino Pak is meeting the production targets, lack of support form the government is creating problems in the efficiency of the company. Hino Pak has already produced CNG busses, but government is still not willing to accept the idea.

The government should aim to increase the local production, by making the local auto industry more competitive, creating capacity for local design and innovation, domestic competition, human resource development and auto-cluster development. whereas the government is still focusing on imports from other neighboring countries.

If existing automobile business are not adapted to the requirements of the future they would soon be history. If the future is inevitable it is imperative to prepare for it in time.

Even though Hinopak Motors Ltd. is a well-managed organization there is still some room for improvement. The company will have to make its decision making and managerial practices more clear and transparent. A trace of double standards during hiring, promotion and foreign trainings ought to be faded out to truly motivate the employees and retain the potential employees of the company. Moreover, structure of the company is to be lined up in such a way that the work channel and communication channel should not affect the pace of the work.

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GLOSSARY

CKD Complete-Knock-Down, when vehicle parts (especially the parts of) chassis come in the separate pieces and assembled in the country where it is assembled to curtail the custom duty factor.

CBU Complete Built-up Unit

6 x 4 First digit shows the total no. of wheels directly attached to the axles of the vehicle and last letter shows the wheels that are directly driven by engine.

PIR Product Improvement Request

QPR Quality Problem Report

E&D Engineering & Development Department.

AOP Assembly operating plant, manufacturing plant where Chassis of the vehicles are assembled.

BOP Body operating plant, manufacturing plant where body of the vehicles are fabricated.

MIS Management Information System

CBA Collective Bargaining Agent

UTS Urban Transport Service

3S Available Sales, Services, and Spare Parts facilities

2S Available Services and Spare Parts facilities

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OTHER REFERENCES

REPORT

Hinopak Motors Limited for the year 2007

Hinopak Newsline

BOOK

WEBSITES

http://www.hino.com

http://www.hinopak.com

http://www.pama.org.pk

http://www.hino-global.com

http://www.japanese-trucks.com

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http://www.hino.com/

APPENDIXES

Annexure-A

Corporate Objective 2008

Annexure-B

Planning/objectives of Production Division

Annexure-C

Capital Budget Expense 2008 of Production Division

Annexure-D

Manufacturing Budget Expense 2008 Production Department

Annexure-E

QPR-Quality Problem Report

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management report on hpml

Business

withthe market share

hinopaks market share

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