ASSIGNMENT

NAME: MUHAMMAD FAISAL

COMPANY: AL-HAJ FAW MOTORS (PVT)

LTD

TOPIC: LIGHT VEHCLES OF AL-HAJ FAW

MOTORS

PRESENTED TO: RESPECTED SIR ADEEL

ZERAK

PROFESSIONAL DIPLOMA IN
SUPPLY CHAIN MANAGEMENT

PAKISTAN INSTITUTE OF
MANAGEMENT
 INTRODUCTION

FAW MOTORS CHINA:

FAW Group is a global leader in vehicle manufacturing industry with
50-year history of innovation. The company was founded as First
Automobile Works in 1953, but is commonly known as FAW. In
1992, the name "First Automobile Works" was changed to "China
FAW Group Corporation".
FAW employees 133,000 people around the world, having Products
sales in over 70 countries with total sales in access of 7 million
world-wide.
FAW started solely as a commercial truck producer and later
expanded into light truck & car sector. In 1991, partnership with
Volkswagen AG with state-of-the-art automobile factory with an
annual production capacity in excess of 150,000 units. In 2002,
Tianjin Automobile Industry (Group) Corporation was merged into
FAW Group Corporation, and began joint venture production with
Toyota Motor Corporation.
FAW's current production strategies put a heavier emphasis on the
production of cars while maintaining dominant position in the
commercial truck industry.
FAW's has state-of-the-art government-certified engineering
development and test center whereas it's R&D facility is China's
largest and most extensive automotive R&D facility, claiming to be
the country's leader in automobile and commercial vehicle
research.
FAW is a diversified maker of quality vehicles and maintains the
lead market position within China while continuing to expand into
new international markets, executing a carefully planned strategy
to build a comprehensive global organization.

AL-HAJ FAW MOTORS (PVT) LIMITED:

AHFML was incorporate by private limited company in October
2006.Al-haj FAW Motors is the sole distributor & progressive
Manufacturer/assembler of FAW heavy commercial vehicles &
passenger cars in Pakistan. First CBU product line of HV was
launched in 2006 which included different Heavy Commercial
Vehicles like Dump Trucks, Rigid Trucks & prime movers.

With our untiring efforts and strong support from FAW China, we
have managed to capture 30-35% market share in Heavy truck
industry.The local production (CKD) of FAW Heavy commercial
vehicles started in December 2011.We have introduced light
vehicles, Mini van & pickup (CBU) in March 2012.And started regular
(CKD) production of mini van (XPV) and Pick-up (carrier) in
September 2012.

AL-HAJ FAW MTORS PRODUCTS:

LIGHT VEHICLES:
FAW V2
FAW CARRIER
FAW XPV
SIRIUS S80
HEAVY VEHICLES:
Prime Movers

J5M 220 HP
J5M 280 HP
J5P 330 HP
J5P 420 HP

Rigid

FAW Tiger V
J5M 220 HP
J5M 280 HP
FOR MY TOPIC OF ASSIGNMENT I AM TAKING THE PRODUCT FAW
LIGHT VEHICLES.

Q.NO.1.Is the product functional or innovative?

ANSWER:

Product is Functional

Q.NO.2.Why do you think that the product is functional or

innovative?

ANSWER:

Product is Functional because Product life Cycle of our product light

vehicles is More than 2 years and product variant is very low. And
average margin of product forecast at the time of production is very
low like 10% as compare to the innovative products. And also there
is no forced end-of-season.

Q.NO.3.What kind of supply chain suits your product?

ANSWER:

Physically efficient Supply Chain is suit to our product

Q.NO.4.Why do you recommend this type of supply chain for the
product?

ANSWER: I recommend this supply chain for my product light

vehicles because the primary purpose of this is to supply
predictable demand efficiently at the lowest possible price. And
also generate high returns and minimize inventory throughout the
chain. The famous and successful Japanese concept for the
automotive industry is JIT, JIT is also describe that minimize the
inventory, waste & shorten the lead time as long as it doesnt
increase the cost.

Q.NO.5.Please make some good recommendations for the supply

chain of the product?

ANSWER:

1st Recommendation:
First recommendation for the supply chain of the light vehicles of
the Al-Haj Faw is that to reduce the inventory of the product at
warehouse.

2nd Recommendation:
Second recommendation is that to more improve the after sale
services by increasing the availability of the parts at dealer services
and also reduce the lead time.

3rd Recommendation:
Third recommendation is that to improve the payment process to
the suppliers. Payment process will be like that after the completion
of payment term payment will online transfer to the suppliers
account rather than after completion of payment terms reminders
are sand to the finance department and then payment will pay to
the vendor by Cheques.