SUPPLY CHAIN OF

ATLAS HONDA

Usman Mushtaq

CMS # 17981

Company Profile
Joint

venture of Atlas Group and Honda Motors Company Japan

Established

in the year 1987

AHL

manufactures and markets Honda motorcycles in collaboration

with Honda Motor Company.

Revenue
Atlas

Rs 55.02 billion (US 540 million) 2015

Honda has 65.7 percent share in the total sales in Pakistan

Company

has 307 dealers nationwide, who are responsible for the

sales of motorbikes

6400

service dealers throughout the country, who are providing

services of repairing to the customers.

Atlas

Honda is creating job opportunities for almost 25,000 people

Vision
To be the market leader in the motorcycle
industry, emerging as a globally competitive
center of production and exports.

Products
Four

major products;

CD 70, CD 100, CG 125 and CG 125 Deluxe

Also

manufactures various hi-tech components in-house in

collaboration with leading parts manufacturers like Showa
Atsumitech, Nippon Denso and Toyo Denso.

Two

production plant at Karachi and Sheikhupura

Production Rate of Karachi Plant is 400 motorcycles per day

Production Rate of Sheikhupura Plant is 1650 motorcycles per day

Competitors
Yamaha
Suzuki
Pak

Hero

Hero
Star
Lifan
30+

more

Atlas

Honda has 65.7 percent share in the total sales in Pakistan

Strategic Goals
Meet

Quality standards.

Continuous
Customer
5s

induction of technologies.

Facilitation & Satisfaction.

Strategy

Sale,

Service, Spare parts, Second hand sales, Safety

How Supply Chain works at

ATLAS HONDA?
The

Supply Chain Management at Atlas Honda is generally

contains the following functions;

SAP

System Application & Products"

Production

Planning

Manufacturing
Warehousing
Vendors
Transportation

SAP System Application &

Products"
Uses

Master production scheduling (MPS)

Help

Atlas Honda they anticipate shortage before its occur,

(current stock, purchasing order, manufacturing order & sales
order)

MPS

you can easily see what exactly the shortage will appear if we
execute the specific production plan.

MRP

shows, which item have to purchase, in what quantity, and

when the order should be placed so that the required material will
arrive just in time

Production Planning:
Atlas

Honda total plant capacity is 500,000 units in Shaikhupura

and 105,000 units in Karachi.

But

Honda produces motorbikes according to the market demand

and customer demand, because of this reason their plant always
operates under capacity

Atlas

Honda is using both push as well as pull system

Push system is use before assembly plant

Pull system is used after they assemble the required units and supply
their motorbikes to their dealers so that dealer could fulfill the
customers demand.

Manufacturing
Total

number of assemble 350 parts for each product

Parts

Imported parts (CD-70) 5%

Imported
Shifts
SKP

parts (CD-125) 15%

in Karachi 1 Shifts

24 hour

Manufacturing Pr0cess
Atlas

Honda there are total fourteen processes

1.

Frame Assembling

8.

Fuel Cope Shop

2.

Paint shop

9.

Die casting Shop

3.

Buffing Shop

10.

Engine Assembling Shop

4.

11. Wielding Shop

Alternative Current generation Shop

5.

Drum Gear Shift

12.

Ignition Coil Shop

6.

Drum Gear Shop

13.

Switch Assembling Shop

7.

Machine Shop

14.

Engine Machine Assembling Shop

Warehousing
Stores

dept. at AHL has been divided into a no of small stores according to

the type of material being stored and functions/services provided by the
store

Atlas

Honda has one major warehouse which is in SKP and where they store
all the finished assembled parts

Two

sub warehouse in its Karachi plant

CKD Store
RM Store

CKD

(Complete Knock Down) Store are those store where they store those
part which they import from Japan and Taiwan and the capacity of this store
is approximately 2000 assembled part

RM

store are those store where they store those parts which is in the raw
form like the steel sheet for making the body tank, rear brake front, and
many other part which they take from the local supplier and convert into the
finished formed and the capacity of this store is almost same as CKD Store

Vendors/Suppliers
Total

number of suppliers 250

At Karachi 120

This

department is responsible for all the relations and dealing with

different vendors.

This

department motivates vendors to produce excellent quality

and train them to achieve the highest level of quality

This

department performs VIP (vendor improvement programe).

Under this programe, the department representatives go to the
vendors and train them for new methods to produce better quality
at reasonable price

At

present, 82 vendors are working with the company

Transportation
Atlas

Honda limited hire local contractor for the purpose of

transporting assembled parts from Karachi to Sheikhupura

There

are three types of trucks that are used for that purpose, and
each of them has different capacity

Type

of trucks and there capacity:

HINO (125 motorbikes)

BEDFORD (110 motorbikes)
MAZDA (65 motorbikes)

Conclusion
Efficient

supply chain management system should be the key

concern for any manufacturing company.

Master

production scheduling (MPS) system helps them to identify

the forecasting factor of each production plan. The MPS indicates
the shortage or the excess of the finish goods.

All

the requirement of the production department is fulfilled in no

time because they forecast the procurement plan for upcoming 3
months

Thank You