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    Supply Chain of Pak Suzuki

    Uploaded by

    MudasserAliKhan
    Pak Suzuki Supply Chain was presented by Mr. Hammad Rasheed. [1] Pak Suzuki operates two manufacturing plants in Karachi producing cars and motorcycles. [2] The company uses a Just-In-Time manufacturing schema to reduce wastage and inventory. [3] There are opportunities to source more raw materials like filters and tires from local suppliers to reduce costs and lead times compared to imports from Japan.

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    Supply Chain of Pak Suzuki

    Uploaded by

    MudasserAliKhan
    98 views18 pages
    Pak Suzuki Supply Chain was presented by Mr. Hammad Rasheed. [1] Pak Suzuki operates two manufacturing plants in Karachi producing cars and motorcycles. [2] The company uses a Just-In-Time manufacturing schema to reduce wastage and inventory. [3] There are opportunities to source more raw materials like filters and tires from local suppliers to reduce costs and lead times compared to imports from Japan.

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    Pak Suzuki Supply Chain was presented by Mr. Hammad Rasheed. [1] Pak Suzuki operates two manufacturing plants in Karachi producing cars and motorcycles. [2] The company uses a Just-In-Time manufacturing schema to reduce wastage and inventory. [3] There are opportunities to source more raw materials like filters and tires from local suppliers to reduce costs and lead times compared to imports from Japan.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    98 views18 pages

    Supply Chain of Pak Suzuki

    Uploaded by

    MudasserAliKhan
    Pak Suzuki Supply Chain was presented by Mr. Hammad Rasheed. [1] Pak Suzuki operates two manufacturing plants in Karachi producing cars and motorcycles. [2] The company uses a Just-In-Time manufacturing schema to reduce wastage and inventory. [3] There are opportunities to source more raw materials like filters and tires from local suppliers to reduce costs and lead times compared to imports from Japan.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 18

    Pak Suzuki Supply Chain

    Presented by
    Mr. Hammad Rasheed
    Introduction

    • Pak Suzuki motor company limited (PSMCL) is a public limited company


    • The company was formed in 1983 with the joint venture of the Pakistan
    automobile corporation limited and Suzuki motor corporation
    • In 1984 The company started its production
    • The company operates the two manufacturing plants
    • Cars plant
    • Motorcycle plant
    • Both are situated in Karachi

    2
    Vision & mission
    • Vision:
    To be recognized as a leading that values customer need and
    provide motoring solutions with strong customer care.

    • Mission:
    1. Strive to market value packed vehicles that meet
    customer’s expectations.
    2. Provide a platform where our stakeholders passionately
    contribute, invest and excel.
    3. Make valuable contribution to Social development of
    Pakistan.

    3
    Manufacturing environment
    &
    manufacturing schema
    • The company works on the make to order environment on pull
    strategy
    • The company used the JUST-IN-TIME manufacturing schema
    • just because to reduce its wastage and to carry the minimum
    required inventory .
    • And its require the small lot sizes and low setup time

    4
    SWOT ANALYSIS

    Strength
    • Highest market share
    • Easily available spare parts
    • Production capacity
    • Market goodwill
    Weakness
    • Scarcity of Raw material
    • Imported Vehicles
    • Less focus on looks & design
    • Less technical training institute
    5
    SWOT ANALYSIS

    Opportunities
    • R&D
    • Increasing Demand for Cars
    Threats
    • Strong competitors

    • Competitors will copy the design

    • Possibilities not to increase sales

    • Possibility to lose their position and customer


    6
    Process of Supply
    Chain Management

    • Demand planning & forecasting


    1-2 • Procurement

    • Manufacturing and assembly


    3-4 • Distribution

    • Return
    5
    7
    Sourcing of Raw
    Material (procurement )

    There are three department which involving for procuring


    components from vendor that are as follows.
    1. IPP (Imports Part Purchasing): Pak Suzuki also imports the
    products from different countries like japan , Korea , Thailand
    but mostly items are from the japan.
    2.LPP (Local Parts Purchasing):Deals in Procurement of locally
    developed Components from local Vendors
    3.GP (General Purchasing):Plant consumable like industrial
    gases, chemicals and administrative procurement from local
    suppliers
    8
    Area for improvement
    (AFI)
    Pak Suzuki imports the different parts such as tyres, air filter,
    oil filters for his most selling hatchback Swift Car from Japan
    while the car is local assembled and manufactured in
    Pakistan.
    Process has following AFI
    1. Long shipment time
    2. More expensive
    3. Increase the lead time of the production
    4. Shortage of the goods in case of defective piece
    5. advance order and production and then shipment
    increase the delivery time of the product
    6. Custom duties also effect on the price of the product
    7. Other taxes also impact on the price of the product 9

    8. Direct impact on the profit of the company


    Opportunity

    • We suggest that the company should get these products from


    the local manufacturers according to their specification and
    needs, which can be be done by following ways:
    • Through contract or tender with 3P.
    • By investing in manufacturing and production & export these
    products under the company standards.
    • Company can also import these products from different
    Chinese OEM suppliers

    10
    Available local Supplier
    for Tyres

    Service Group: (HIT, HMC, HONDA, YAMAHA, MILLAT)

    General Tyre: (TOYOTA, HUNDAI, FUSO, HINO)

    Ghauri Tyre: (ZXMCO, ROAD PRINCE, METRO BIKE,PAK HERO,


    SOHRAB, UNIQUE)

    Panther Tyre: (SUZUKI, DYL MOTORCYCLE, ASIA HERO)

    HKB Enterprises: (PEL, QINGQI, FAW,HIT)

    11
    12
    13
    Available local Supplier
    for Air Filter & Oil Filter

    Guard Filters are ISO certified & prime in quality which is


    making Filters for following companies.
    • Honda
    • Toyota
    • Nissan
    • Millat
    • Alghazi
    14
    Material handling
    department (MHD)

    After procuring the raw material the MHD performs the


    following functions:

    • Receiving
    • Storage
    • Supply to production line

    By the integration of these departments

    15
    Area of
    Improvement(AFI)

    The MHD also facing some of the major issues which are as
    following:

    Line Rejection: (Mishandling by unskilled workers which cause


    manufacturing defects)

    Defected Supply: (Defected supply also cause of shortage


    which is not up to the specification)

    16
    Opportunity

    • Provide the suitable & proper training to the unskilled


    labor and also take the practical examination from them
    and strictly supervise their work.

    • Prefer the procurement from local suppliers or vendors


    which can reduce the warranty claims and duration.

    • Every lot should be inspected before delivery by the


    supervisor or represented of the company.

    • Do not compromise on company standards.

    • Low the bargaining power of suppliers to reduce the 17

    switching cost.
    Thank You !

    18

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