Honda Atlas Cars Pakistan Commerce Essay

As a part of Course Requirement for Total Quality Management, an industrial visit was arranged by the Management of PIQC. To complete this requirement, 2 industrial visits were arranged for the students of MS/M.Phil in HRM/TQM. Descon Engineering was the first company to visit and the Honda Atlas Cars (Pakistan) Limited was the 2nd company to visit.

The visit of Descon Engineering Limited provided a unique opportunity of exceptional learning. This visit opened the new horizon of practical side of the class room learning. The opportunity to experience the TQM and HRM systems of a company like Descon was obviously an exclusive chance to introduce such systems in my own company.

The TQM Systems at Honda is no doubt very solid and have backup support of HONDA Japan. Waste Control is an important angle to notice in reducing cost. Waste control is not limited to material only it is extended to the time of workforce also. Each activity at production floor is stringently timed and this is understood by each worker at the shop floor. The company’s focus on training of each employee plays an important role to implement TQM program at Honda Atlas Cars (Pakistan) Limited.

Introduction

Honda Atlas Cars (Pakistan) Limited is a Public Limited Company registered in all 3 Stock Exchanges of Pakistan. This is Joint Venture of “Honda Motor Company Limited”, Japan and Atlas Group of Companies Pakistan. The Company was incorporated in 1992 and Ground Breaking was held in 1993. Plant construction and erection of machinery was completed in 1994 and First Car was rolled out of Assembly Line in May 1994.

The Company has a wide range of Dealership spread all over Pakistan with 21 Dealers having 3S (Sales, Spare Parts and Service) Category, 2 Dealers are having 2S (Service & Spare Parts) category and 6 Dealers are having 1s (Spare Parts) Category in all major cities of Pakistan. All Dealership are within the defined parameters by Honda Worldwide.

Honda Atlas Cars (Pakistan) Limited conforms to the Policy of Government of Pakistan with respect to Local Parts used in Car Manufacturing. Honda Pakistan has very strong relationship with the suppliers while patronizing the vendors for developing and manufacturing of local parts. The Quality of local manufactured parts is specifically focused to meet the stringent International Quality Standards.

Honda Atlas Cars Pakistan has continuous striving focus on Outstanding Service to its customers. The Company conducts the Service Campaign to facilitate the customers’ needs for service in addition to the regular service. The Management at Honda thinks that this Service factor has significantly contributed towards the absolute confidence of customer into the Honda Cars. To Achieve Customer Satisfaction is a regular effort of Honda Atlas Cars (Pakistan) Limited. Meet Customer Expectations and Provide Good Value for Money is the Commitment of the Company.

Products / Models [1]

Honda Accord

Incomparable sporty driving, Enlarged for luxurious comfort, More powerful and Responsive than ever, the all-new Accord is unforgettable in motion. Such bold performance can only emerge through process of comprehensive analysis, planning, and refinement of body design, seeking the ideal balance of rigidity, weight, and dynamism. accord.jpg

Honda – CRV

Minds at Honda thought of the new CR-V as a classically orchestrated machine that offers a lot more. The design of the CR-V is so aesthetically aligned that it makes it a traditional case of love at first sight.CRV.jpg

Honda Civic

The Civic is as intuitive as it is seductive. With cutting-edge form and function, it will tempt you in various ways. From its sleek aerodynamic body to its Intelligent Multi Information Display (i-MID) and everything in between, you’ll be hard pressed to resist it. Honda Civic comes in following versions:Civic.jpg

i-V Tec Manual Transmission

i-V Tec Prosmatic Transmission

VTi Oriel Manual Transmission

VTi Oriel Prosmatic Transmission

Honda City

Striking good looks, cutting-edge design, sharply focused tension. The compact sedan breakthrough with strength to open a new era. Sleek styling and strong performance, with swift, gutsy response to the driver’s pedal action. Class-leading spaciousness and relaxing ride for outstanding comfort. Available in following 2 versions:City.jpg

Manual Transmission

Prosmatic Transmission

Visit Objective:

To understand and comprehend the key processes and procedures of Honda Atlas Cars (Pakistan) Limited and Descon Engineering Limited

To be Familiar with the Working Environment of both the Companies

To become aware of the role of different people in Honda Atlas Cars (Pakistan) Limited and Descocn Engineering Limited

To recognize the need for health and safety in the workplace

To focus on the specific aspects of TQM/SHRM studied in the class

Quality Management System at Honda Atlas Cars (Pakistan) Limited

The Quality Systems at Honda Atlas Cars (Pakistan) Limited are implemented in every function of the organization. The management’s commitment is exhibited from the various Quality initiatives taken by the company to attain customer satisfaction. Honda believes in 3 joys as a result of its product and service:

Joy of Buying

Joy of Selling

Joy of Producing

Honda aims at achieving 120% Quality. Honda strives and dedicated to provide highest efficiency at reasonable price for customer satisfaction. The design philosophy of Honda seeks maximum space and comfort for people while the space for mechanical components is attempted to keep at minimum level. Honda’s fundamental research activities include specific product development worldwide with a special focus on safety of people and prevention from pollution.

As a part of TQM program, Honda has adopted:

Customer Focused

Increased Efficiency

Reducing Cost

Empowerment

Expediting daily operation

To achieve all of the above, the production lines have been designed in a manner where wastage of time and material has been reduced to minimum level. The time at each stage of assembly line is clearly defined and communicated thus enabling the company to achieve its daily production target within the specified time.

In order to get maximum benefits from TQM program, Honda is heavily relying upon training of its workforce. It’s mandatory for every person to complete the training of 7 basic tools of TQM. Every new joiner has to go through the training of 7 basic TQM Tools before being engaged in the job. To reinforce the learning refresher courses are also offered and signs of various TQM principles and strategies are also hanged in the entire production area.

Honda has implemented PDCA Cycle as a regular management practice. Plans are made and implemented, outcome is analyzed, new problems are identified to improve the process and it is repeated till the objective is achieved.

Quality Initiatives at Honda

Aiming at Achieving 120% Product Quality

Honda considers it unacceptable; even 1 customer in 10,000 receives a defective product, hence, the management of Honda is totally focused to achieve 120% Product Quality. Honda is continuously striving to achieve ever high product quality standards and constantly taking new initiatives to meet or exceed the customer expectation. Honda is determined to offer product of high quality to further strengthen the customer’s trust.

Implementing Global Honda Quality Standards

In order to ensure that all Honda facilities Globally, continue to support 120% product Quality, Honda Atlas Cars (Pakistan) Limited is implementing Global Quality Assurance standards as an essential part of its Quality Management System. Global Honda Quality Standards provides a substantial amount of knowledge, gathered by HONDA in producing quality product and preventing the issues form reoccurring.

Quality Cycle

Quality Cycle has been created by Honda to enhance quality at every stage i.e. Design, Development, Production, Sales and After Sales Service. Expertise in Design, Development and Production is applied to facilitate manufacturing control techniques to avoid process variations.

System to Enhance Product Quality

A system has been established to quickly identify the quality issues and resolving them as they occur and then reporting these issues and solutions to HONDA JAPAN for a worldwide data of Quality Issues to prevent these issues from reoccurring all Honda Facilities around the Globe.

Handling Issue

Recall System & Other Measures

When it is established that a product issue requires action, the customer is contacted by means of direct mail from the dealer or by telephone guiding the customer how he/she can receive free repair.

Compliance with Product Safety

As a manufacturer of Consumer Goods, Honda is determined to ensure the Safety of the product and Passengers. To strengthen this further Honda has introduced Airbags in both front seats of its new VTI models.

Quality Management Training

In order to enhance individual worker’s quality control responsibilities and to improve quality assurance skills of its Associates, Honda offers a QC basic course to and 7 Basic Tools of Total Quality Management along with other courses. These 2 training courses are mandatory for every worker and Associates. Honda has build in house capabilities and resources to impart knowledge of QC basic course and 7 basic tools of TQM.

Conclusion & Findings

Quality Management System

Honda has implemented TQM at its manufacturing site and also incorporating some tools and systems guided by HONDA Japan.

Honda has adopted to a philosophy to push back the quality to the Suppliers/Vendors – expecting the Product to arrive at its facility defect free. This philosophy could not stop Honda from Inspection and Testing of raw material at these arrive at Honda.

Honda relies heavily on Inspection of incoming Parts because of the tolerance and complexity of some of the parts, some vendors are not able to always guarantee to meets quality standards.

Honda carries 100% inspection for critical components especially the Safety Critical Components.

Tour of Honda Facility

Visiting Honda was a very good experience and provided practical insight for an excellent TQM System on Floor.

The presentation made by Honda Officials was focused on Company Introduction, History, Financials and Products. TQM System at Honda was not included in the Presentation.

Tour of Production Facility was a real value addition to the purpose of the visit.

Least opportunity to understand the TQM System at Honda because the entire understanding of TQM is based on Plant Visit and a very brief QA session.

Welcome and entertainment by Honda Officials is really appreciable.

A brief presentation about TQM System at Honda for future visits will definitely help the visitors to understand practical approach of TQM.

PART – 2

Descon ENGINEERING LIMITED

HUMAN RESOURCE MANAGEMENThttp://www.descon.com/cms_page/14/Establishment1.jpg?R=5cb57cb3f9http://www.descon.com/images/logo.gif

Introduction [1]

Descon Engineering Limited is an integrated engineering services and manufacturing organization having its operations in Pakistan and Middle East. The business of Descon is delivering client-specific solutions for projects related to Energy, Infrastructure and Process industry. The integrated package of services encompasses engineering, procurement, manufacturing, construction, commissioning and maintenance.

Descon is a multinational company renowned in the region for its quality, safety and on-time delivery of projects and products. All the faculties required to deliver turnkey projects, reside within the company. This unique strength enables Descon to provide solutions as EPCC (Engineering, Procurement, Construction and Commissioning) services provider to a host of international clients.

Established in 1977 with 4 employees in Lahore (Pakistan) providing engineering services to process plants, today Descon is a major player in the region serving the oil and gas, chemical, petrochemical, cement, power and infrastructure sectors in Pakistan and the Middle East.

Descon’s Headquarters is located in Lahore, Pakistan. The company is well-established in United Arab Emirates, Saudi Arabia, Qatar and Kuwait with projects executed in Iraq, Oman and Egypt as well. Joint ventures include Olayan Descon in Saudi Arabia, and Presson Descon International Limited (PDIL).

Descon Integrated Projects Limited (DIPL) is a state-of-the-art engineering office with 500 design personnel. Descon operates seven manufacturing/fabrication facilities in the region to supply industrial process equipment and bulk items like steel structure and piping spools.

General contracting is the core activity with large projects executed for owners/operators, major EPC companies and International Oil Companies. This strength is vested in Descon’s experienced project team and a large inventory of equipment.

All operations have requisite ISO, OHSAS and ASME certifications in addition to Descon’s own QA/QC and HSE standards.

The company is driven by clearly defined vision and strives to add value to its clients’ businesses by providing world-class solutions at cost-effective levels.

Vision [1]

To become a world-class engineering, manufacturing and construction company operating internationally.

Core Values [1]

Professionalism

Team Work

Open Communication

Leadership

Continuous Improvement

Human Resources Management at Descon Engineering Limited

Descon considers it employees as a biggest asset as the passion and commitment of employees is the driving force behind the success of the company. Descon maintains highest level of professional and personal standards for its employees revolving around the core values described under the introduction.

Human Resource Department is the focal point in honoring the commitment of the company to enhance the quality of its projects through capability and of professionals and appropriate Organizational Structure. Being EPCC Company Descon is engaged in Project Management with defined life cycle; hence it is very important to complete all the activities with given time. To achieve this Quality of Services and Speed to Respond becomes Critical Success Indicators. The HR systems are based on Trust and Open Channels of Communication playing a vital role in Employees Motivation.

Descon has implemented Talent Assessment Program (TAP) that is very powerful tool to identify and retain high caliber individual. There is process of 360 degree appraisal to identify the individuals for TAP. The immediate supervisor, one subordinate, one peer, one customer and one supplier are the generally included in the appraising process of 360 degree appraisal. However, if HR department is not satisfied with these appraisals, it may decide to further decide to have a few more appraisal and that number may go up to 8 or beyond. The further process may include the department where the individual has worked previously.

Descon has a formal Committee comprising of Sr. Management Team Members to evaluate and recommend the promotion of management cadre employees. The Recommendations of this committee is than submitted to the CEO who approves or disapproves the recommendations of the committee. In an informal discussion, the visit coordinator explained that 90% times the CEO approves the committee recommendations but 10% times the recommendations are turned down by the CEO.

Human Resources Process

The Human Resource Department of Descon Engineering Limited is appropriately structured and designed to best suite the organizational needs. HR department of Descon Engineering Limited has a well established system of Recruitment and Selection where candidate passes through the defined recruitment process that may include test, and a series of interviews. The entire HR process is based on Transparency and open communication.

Descon has a market competitive and fair compensation System and based on Job Evaluation, Salary Benchmark, and Compensation surveys. The Performance Management system is also part of regular activity at Descon and Reward System including Annual Increment is linked with Performance. HR policies support the Performance Rewards and contribute towards retention of employees.

The HR process at Descon is also focused on Training & Development of its employees. A formal Training Need Assessment is carried out every year and based on TNA Training Plans and Training Calendars are prepared. Training effectiveness is also measured through Feedback of trainees. Descon has Established a Management Development Centre that is responsible for are training needs and activities of the Company.

Organization Development & Design function of Descon is responsible for Change Management and HR Interventions. Career Planning and succession planning is also part of its activities and at the same time a continuous effort is an essential element of this function. Descon considers it important to persistently find ways to enhance capacity of its employees.

The HR Operations is carrying out day to day affairs of HR process including maintaining Personal Files, Employees Database, Leave Record and Attendance.

Human Resource Department of Descon plays a vital role in mobilization of its workforce for local and off shore projects. In time availability of required manpower is an important element is successful completion of project and HR’s role is very significant. On completion of a project, demobilization is another important aspect handled by HR department. The sensitivity in demobilization is to find productive roles for permanent employees in case there is no new project is immediately in hand.

There are well designed policies and guidelines with Human Resource Department for posting and transfer of permanent employees on Off Shore project and vice versa. These policies clearly define the compensation at off shore project and compensation on a local project while relocating the person back to Pakistan.

The Human Resource Process of Descon Engineering Limited is defined in Figure 1 below:

Figure 1

Conclusion and Findings

The visit of Descon Engineering Limited was an excellent experience and provided practical exposure to TQM and HRM systems of the company

The visit was planned in a very good manner and the Company was ready to impart practical aspect of both the systems

Presentations on TQM and HRM were planned in the finest way and offered handful valuable information

Descon Engineering Limited has very well defined and structured Human Resource Systems

The HR Process of Descon supports the organizational design and plays a vital role in achieving the Business Results.

With very sound and robust HR Systems, the company focuses on every core function of Human Resources.

The Retention strategies of HR department are good support to the business.

Being a Project Management Company, there is a strong need to have smooth mobilization and demobilization of people, Descon’s HR department has appropriate focus and policies to support this activity.

TAP is a very powerful tool to retain high caliber employees but it is felt that there is a need to further refine this program with more and more quantitative techniques. This program should be more transparent to employees and HR department needs to have strong reasons in case further appraisal is required. Currently, it seems that satisfaction of HR department is necessary to proceed with the initial 5 appraisal on 360 degree feedback.

The Promotion Systems is an appropriate and transparent way but final decision by the CEO has questions on the transparency of the system even though only 10% times the CEO turns down the recommendations. Its better if the CEO becomes part of Committee deciding and recommending the Promotions.