1. SUPPLY CHAIN MANAGEMENT IN HINOPAK MOTORS LIMITED.

2. Presented by: SHEEMA RAZA 2936 ADIL AZIZ 2938 KHAWAR ATEEQ 2934 SANA MUSHTAQUE Sir. SOHAIL MAJEED IQRA UNIVERSITY

3. SCM Mission To create a seamless end-to-end Supply Chain from suppliers to customers, which provides excellent Customer Service at optimal overall cost through: Efficient Business Partners relationship Flexible manufacturing Reliable distribution Reduction in cost base

4. Supply Chain Goals Efficient supply chain management must result in tangible business improvements. It is characterized by a sharp focus on ; Revenue growth Better assets utilization Cost reduction

5. Supply Chain in Hinopak Motors Limited

8. PRODUCT RANGE Assembly Operation Plant (AOP) 500 SERIES 300 SERIES BUS SERIES AK1JR AK1JR-CNG AK1JM RK1J FB2W AK1JR-LH DUTRO-LH DUTRO (4x2) JR. DUTRO (4x2) HIGH POWER DUTRO (4x2) FG1J (4x2) FL1J (6x2) FM1J (6x4) SG1J (4x2) FM2P (6X4) GT1J (6x4) IMV FRAME

9. PRODUCT RANGE Body Operation Plant (BOP) Urban Bus Splendor Bus CNG Bus Senator Urban Bus Rapid liner Road liner Bus Bodies Truck & Specialized Bodies

10. Achievements ISO 9001 Certification Hinopak is the only automotive company in Pakistan and the first Hino affiliate worldwide to receive the ISO 9001 certificate. This certificate has been given to Hinopak for implementing and maintaining a company-wide quality. ISO 14001 Certification Being a responsible corporate citizen striving for the improvement in our environment, both within and outside the company , Hinopak Motors Limited has voluntarily ISO 14001 Certification. ISO 14001 pertains to monitoring and managing the effect, which any business has on the environment. OHSAS 18001:2007 Certification Hinopak has successfully achieved accreditation to safety management system OHSAS 18001:2007. OHSAS 18001 is a Health and Safety Management System, developed to assist in the reduction and prevention of accidents and accident related loss of lives, equipment and time.

11. HINOPAK Sales Achievement (Last 10 Years) World Recession 4,112 5000 3,593 3,017 2,614 3000 2,341 2,286 1,883 1,518 1000 895 876 0 2000 2002 2003 2004 2005 2006 2007 2008 2009 2001

13. Organizational Chart

14. Supply Chain Structure in HINOPAK Inventory management Procurement manufacturing Supplier Customers Final product

15. Procurement & inventory management

16. Order Flow Process ( Customer to HPML)

17. ERP System Implementation Material Management Inventory Control Bill of Material Ordering Scheduling Stock Checking & Control

18. Classification of Inventory CKD Parts These are high value, low volume parts these parts are outsourced mainly from Japan.CKD parts come on weekly bases and are issued CKD store. The rolling of these high value parts takes place on regular intervals Vendorized / local parts These parts are purchased form specific vendors which are not international but local vendors, all types of parts under the category of Venderized/local parts, like High value, low volume, low value, high volume.

19. Pareto Principle for Inventory Control Pareto Principle is used as a Powerful Tool for Keeping with the lowest cost of stock. The Manager MOD Frequently and Closely Control 20% of the Inventory Offer that makes 80% of total Inventory Value. 1700 items are available in different CBOM , 200 Kanban items. Kanban The concept is that a supplier should only deliver components to the production line as and when they are needed. Kanban limits the amount of inventory in the process by acting as an authorization to produce more inventory. Kanban is maintaining minimum inventory on the floor.

20. ImportProcurements Process

21. OK NOT OK MRN generated Finance (-tax & payment to vendor) Local Procurements

22. Global Procurements

23. Example of ERP System MRP PLANNING

24. Warehouse management

25. Warehouse Management Stores: Stores Department at Hinopak performs following functions. Manages the receiving, stacking & Issuance of parts & materials to the shops. Ensures the provision & dispatches of required parts to the shop floors, spares parts division & vendors. Handles the rejections & damages from all shops Division of Stores: Stores department at Hinopak has been divided into a number of small stores according to the type of material being stored and function/services provided by the store.

26. The division is shown as follows:

27. Manufacturing

29. Assembly Operation Plant ( Flow Diagram)

30. Practice to Improve / Process Efficiency To avoid 3Ms

31. 5S Activity

32. 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. It pushes 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.

33. vendor management

34. Vendor Registration Form

35. Vendor Evaluation Form (Initial)

36. Sourcing There are three types of Sourcing Sole Technical specifications Raw material location Only single organization is producing that particular material. Multiple Quality Costs Price Single Sourcing Sourcing is based on the joined consensus of opinion of the organization. This results in long term contracts among the suppliers with a guaranteed volume.

37. Quality Performance Scorecard for vendors (monthly basis) Points ranking:

39. A = 85 % ~ 94 %

40. B = 75 % ~ 84 %

42. Thank youfor your kind attention