Pakistan Suzuki

TOTAL QUALITY MANAGEMENT TERM REPORT ON

SUZUKI PAKISTAN Submitted to SIR NAVEED A.KHAN

Submiited by

HARIS AHMED KHAN UMAR MASOOD ERUM PARVEEN SHEIKH

BAHRIA INSTITUTE OF MANAGEMENT AND COMPUTER SCIENCES, KARACHI

UZUKI PAKISTAN 201 0

ACKNOWLEDGEMENT

First of all, we would like to express our deep gratitude to Almighty Allah, who enabled us to undertake such an important task and to study about Pak Suzuki and the Strategies to operate in Pakistan Automobile Market.

We also wish to acknowledge the valuable guidance provided by our respected teacher Mr. Naveed A Khan. He always motivated and encouraged us in the completion of this report.

We are thankful to Mr. Abdul Aziz who is the Production Manager in Pak Suzuki at Bin Qasim Plant Karachi and entire Pak Suzuki Management. They appreciated the efforts of Bahria University Karachi Campus. They They have provided provided all all the the rele releva vant nt data data as well well as othe otherr info informa rmati tion on rela relati ting ng to the the impo importa rtant nt independent variables.

History In 1909, Michio Suzuki (1887-1982) founded the Suzuki Loom Works in the small seacoast village of Hamamatsu of Hamamatsu,, Japan. Japan. Business boomed as Suzuki built weaving looms for Japan's for Japan's giant silk industry. In 1929, Michio Suzuki invented a new type of weaving machine, which was exported overseas. Suzuki filed as many as 120 patents and utility model rights. The company's

Total Quality Management

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UZUKI PAKISTAN 201 0 first first 30 years years focuse focused d on the develo developme pment nt and product production ion of these these excepti exceptional onally ly comple complex x machines. Despit Despitee the success success of his looms, looms, Suzuki Suzuki reali realized zed his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. The project began in 1937, and within two years Suzuki had completed completed several several compact compact prototype cars. These These first first Suzuki Suzuki motor vehicl vehicles es were were powere powered d by a then-innovative, liquid-cooled, four-stroke, four-cylinder engi engine ne.. It feat featur ured ed a cast cast aluminum crankcase and gearbox and generated 13 horsepower (9.7 kW) from a displacement of less than 800cc 800cc.. With the onset of World War II, production plans for Suzuki's new vehicles were halted when the government declared civilian passenger cars a "nonessential commodity." At the conclusion of the war, Suzuki went back to producing looms. looms. Loom production was given a boost when the U.S. government approved the shipping of cotton to Japan. Japan. Suzuki Suzuki's 's fortun fortunes es bright brightene ened d as orders orders began began to increa increase se from from domest domestic ic textil textilee manufacturers. But the joy was short-lived as the cotton market collapsed in 1951. Faced with this colossal challenge, Suzuki's thoughts went back to motor vehicles. After the war, the Japanese had a great need for affordable, reliable personal transportation. A number of firms began offering "clip-on" gas-powered engines that could be attached to the typical bicycle typical bicycle.. Suzuki's first two-wheel ingenuity came in the form of a motorized bicycle called, the "Power Free." Designed to be inexpensive and simple to build and maintain, the 1952 Power Free featured featured a 36 cc, one horsepower, horsepower, two-stroke engine. An unprecedented feature was the doublesprocket gear system, enabling the rider to either pedal with the engine assisting, pedal without engine assist, or simply disconnect the pedals and run on engine power alone.

Introduction Following the terms of the Joint Venture Agreement between Suzuki Motor Corporation of Japan (SMC) and Pakistan Pakistan Automobile Automobile Corporation Corporation (PACO), (PACO), Pak Suzuki Suzuki Motor Motor Company Company Limited (PSMCL) was incorporated as a public limited company in August 1983. The new company assumed the assets, including production facilities, of Awami Autos Limited. PSMCL started commercial operations in January 1984 with the p rimary objective of passenger cars, pick ups, ups, vans and 4x4 vehicl vehicles. es. The groundb groundbrea reakin king g ceremo ceremony ny of the company company’s ’s green green field field automobile plant at Bin Qasim was performed by the then prime Minister of Pakistan in early 1989. On completion of first phase of this plant in early 1990, in-house assembly Suzuki engines started. The new plant was completed in 1992, and Suzuki production was transferred to new plant — and three box 1300 cc Margalla car was also added to its range of production. In Sept Septem ember ber 1992 1992 the the compa company ny was was priv privat atiz ized ed and and plac placed ed dire direct ctly ly under under the the Japan Japanes esee Mana Manage geme ment nt.. At the the time time of priv privat atiz izat atio ion n SMC SMC incr increa ease sed d its its equi equity ty from from 25% 25% to 40% Subsequently, SMC progressively increased its equity to 73.09% by December 31, 2001.Today Pak Suzuki has one of the most modern automobile manufacturing plants in South Asia and currently exports its cars to countries like Bangladesh, Bangladesh, Ghana, Ghana, Nigeria & Maldives. Maldives.


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Pak Suzuki Motors Ltd. is a company assembling and distributing Suzuki Japan's cars in Pakistan. Currently they are one of the most successful motor companies in Pakistan. The firm was founded in 1983 as a joint venture between PAK and Suzuki, formalizing the arrangement by which Awami Auto Ltd. had produced the Suzuki SS80 from 1982. Suzuki originally owned 25% of the stock, and has gradually increased their holding; they now own 73.09%. The company now assembles a wide range of Suzuki vehicles and aims to produce 150,000 vehicles per year. (2005 production was 100,000)

Our Vision “To be Excellent All Around”

Our Mission “To provide automobile of international international quality at competitive price.” These are Mission and Vision Statement of Pak Suzuki, and they always try to improve skills of employees by imparting training and inculcating in them a sense of participation. • •

• •

To achieve maximum indigenization and promote the automobile vending industry. To contri contribut butee to Pakist Pakistani ani societ society y through through develo developme pment nt of indust industry ry in general general and automobile industry in particular. To improve skills of employees by imparting training. To provide automobile of international quality at competitive price.


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UZUKI PAKISTAN 201 0 Company Brief

Paid up capital

Rs. 491, 312,000/-

Location

Downstream Industrial Estate of Pakistan Steel

Total area

259,200 m (64 Square acres)

Covered area

41,000 Square Meters

Facilities

Press Shop, Welding Shop, Paint Shop with state of the Art ED System Engine & Tran Transm smis issi sion on Asse Assemb mbly ly shop shop Moder Modern n Conve Convert rt Fina Finall Asse Assemb mbly ly and and Hi-T Hi-Tec ech h Inspection Shop/Tester line. The Company has also established a modern Waste Water Treatment Plant as its contribution to the environment.

Cost

Rs. 2.7 billion

Production capacity

50,000 units per annum (double shift)

Board of Directors

Mr. Yasuo Suzuki

Chairman & Chief Executive

Capt. (Retd) Bashir Ahmed

Deputy Managing Director

Katsichiro Ota

Director

Yoshio Saito

Director

Koki Imamura

Director

Nasim Beg


Director

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The distribution channels of Pak Suzuki shown in the following Diagram.


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UZUKI PAKISTAN 201 0 Statement of Ethics and Business Practices Here are the code of ethics and Business Practice of Pak Suzuki Motors, 1. Pak Suzuki insists on integrity and honesty of its employees in doing business. Any unfair or corrupt practices to solicit business is fundamentally inconsistent with business codes of company.

2. Pak Suzuki believes in compliance to regulatory obligation. 3. Pak Suzuki believes in free and fair business practices and open competitive markets. Developing any association with competitors to distort the pricing and supply of products is contradictory to company’s business code of conduct.

4. Pak Suzuki believes in transparency transparency in business transaction transaction and they are to be recorded recorded accurately and fairly in books of accounts in accordance with standard procedure.

5. Pak Suzuki Suzuki expects expects its its employ employees ees to act in company company’s ’s best best intere interest st while while holdin holding g confidentia confidentiall informati information. on. Company Company expects expects its employees neither to solicit solicit internal internal information from other nor to disclose company’s data or any other material information to any un- authorized person/body.

6. Pak Suzuki believes in individual’s respects and growth. Its employment policies do not discriminate on basis of race, religion, gender or any other factor. 7. Pak Suzuki Suzuki does not believ believee in polit political ical affil affiliati iation. on.

Corporate Strategy Pak Suzuki is built built on the idea of a respon responsib sible le corpor corporate ate citizen citizenshi ship p thereb thereby y managi managing ng enviro environme nmenta ntal, l, safety safety & occupat occupation ional al health health matter matterss as an integr integral al part part of our busine business. ss. In fulfilling this responsibility Pak Suzuki adheres to the following principles: 1) We are committed committed to provide top quality quality products to the satisfaction satisfaction and requirement requirement of our customers. 2) We conduct our operations in compliance with applicable environmental, occupational health & safety laws and regulations. 3) We recognize the interrelationship between energy and the environment, and we promote the efficient use of energy throughout our system. 4) We ensure safe disposal of waste generated from our facility. 5) We minimize minimize the discharge discharge of waste materials materials into the environment environment by utilizing utilizing responsible responsible pollution control practices.


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UZUKI PAKISTAN 201 0 6) We will continuously seek opportunities to improve our adhe rence to these principles. As it is clearly mentioned in their Vision Statement that to be excellent all around, and they always operate in Environment friendly. And their Product always be the environment friendly. With With the global globaliza izatio tion n of market markets, s, greate greaterr foreig foreign n compet competiti ition, on, and the reduct reduction ion of entry entry barriers, it becomes all the more important to benchmark a company’s financial indicators on a worldwide basis. World stock markets have recently witnessed a return to fundamental financial analysis. Sound management as opposed to hype will in the long run generate shareholder value.

Environmental Policy As a general manufacturer of automobiles, motorcycles, outboard motors, etc.,Suzuki addresses environmental conservation at all stages in its operations from development to disposal. In product development, we make every effort to improve fuel economy, reduce exhaust emissions and noise, and develo develop p clean energy vehicles, vehicles, etc. In manuf manufacturi acturing, ng, we addres addresss issues such as reducing environmental risk, reducing energy, and promoting the use of alternative energy. In distribution, we focus on improving transportation efficiency and energy reduction, promoting the three Rs and the use of low emission transport. In marketing, we address issues related to promoting environmental management at our dealers and proper disposal of end-of-life products, etc. In addition to activities related to production, we also promote energy reduction and green purch purchasi asing ng in our off office ices, s, pro provid videe our emp employ loyees ees wit with h envi environ ronmen mental tal edu educat cation ion,, pro promot motee enviro env ironme nmenta ntall man manage agemen mentt at our dea dealer lers, s, and pro provid videe soc social ial act action ion pro progra grams ms in loc local al communities.

Suzuki 2008 Environmental and Social Report (web version)


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Suzuki's Green Procurement Policy According to the concept of the "Suzuki Global Environment Charter", we will make further efforts on the global environment conservation an d the realization of sustainable development for the society with collaboration from our Suppliers. We will promote the "Green Procurement" as a part of the activities to accomplish Corporate Social Responsibility. In order to promote the “Green Procurement” with the suppliers, we indicate our policies in this guideline (including Related Information, Attached Sheets and Attached Forms). Suzuki's Gre Suzuki's Green en Procure Procuremen mentt Policy Policy:: "Su "Suzuki zuki procures procures 'Green 'Green Product Products' s' from from 'Green 'Green Suppliers'."

(1)Purpose: Concerning Green Procurement that Suzuki is promoting, to deepen the Supplier's understanding, and to confirm the Suppliers to agree about our policy. And also to make the Suppliers comprehensively certify and declare that they conforms and will will cont contin inuo uous usly ly conf confor orm m to the the laws laws and and regu regula lati tion onss conc concer erne ned d in redu reduci cing ng environmental impact.

(2) Renewal and cancellation of the “Agreement” (a) Renewal: The “Agreement” shall be automatically renewed every year. (b) Cancellation: Once the “Agreement” has been submitted to us, it shall remain in effect until we received received the cancellatio cancellation n of the Agreement Agreement in written. written. If you request cancellatio cancellation n of the Agreement, Agreement, please please fill in the attached attached "Suzuki "Suzuki Green Procurement Procurement Agreement Agreement Cancellation Cancellation Proposal" with a signature and submit it to the address specified in 6-3 "Contact and Document Mailing Address".

(3) To Suppliers (a) To Current Suppliers: we will give priority to the business transaction with the Suppliers who have submitted the “Agreement” to us. (b) To New Suppliers : All new Suppliers, who will start business transaction with Suzuki, shall submit the “Agreement” to us.


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Product variety & Prices Following are some varieties of Moped with their and Prices:

SWIFT (1300 cc) Due to failure failure of Liana Pak Suzuki introduced introduced another 1300cc car in Jan 2009. Swift has all the latest features like power steering, central locking, Auto Transmission and the ABS. All the 1300cc cars in Pakistan have price range of Rs.1300000 Rs.1300000 to Rs.1400000, Rs.1400000, while Swift was introduced at Rs.99900. It has still advantage of price competition as compare to other 1300cc 13 00cc cars in Pakistan. Price: Rs. 1,049,000/The European inspired exterior gives Swift a distinctive look. A unique stylish and design that turns a head where you go. The spirited engine makes for exhilarating drive and gives you ultimate freedom where the road takes you. Pearl Red, Red, Graphi Graphite te Grey, Grey, Solid Solid white, white, Indigo Indigo,, Silky Silky Colors: Pearl Silver, Aqua Blue, Eminent Blue

LIANA (1300 & 1600 cc) Liana is a luxurious and highest price car of Pak Suzuki. It was made to compete Pak Suzuki biggest competitors like Toyota and Honda. Liana has the same features which are available in Corolla and Civic but still it couldn’t make its market as compare to both these cars. Liana has replaced the Pak Suzuki’s Baleno in 2005-06, since Pak Suzuki tried several ways to establish its position but failed to do so. It was made for a people of high income group but due to high prices in which the market was already giving names like corolla and civic who has their strong brand name and customer loyalty, liana was failed to capture the market. Price: Rs. 1,230,000/The Suzuki Liana available in 1300 cc manual transmission and 1600cc automatic automatic transmiss transmission ion takes you out of ordinary ordinary and into the realm. Liana is entirely different car, its style, dimension and comfort will inspire you to see everyday as an open door to a new age. Pearl Red, Red, Graphi Graphite te Grey, Grey, Solid Solid white, white, Indigo Indigo,, Silky Silky Colors: Pearl Silver, Aqua Blue, Eminent Blue


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CULTUS (1000cc) Price: Rs. 897,000/Cultus is the blend of space and craft. Its trim body Conc Co ncea eals ls am ampl plee sp spac acee & fl flex exbl blit ity y fo forr bo both th passenger passenger and stor storage. age. Cultu Cultuss ensure ensuress every everyone, one, exceptional Value and quality.

Pearl Red, Graphi Graphite te Grey, Grey, Solid Solid white, white, Colors: Pearl Indigo, Silky Silver, Aqua Blue, Eminent Blue

MEHRAN Mehran has the highest growth rate in automobile sector in Pakistan. Pak Suzuki always changes the different parts of Mehran either exterior or interior wheneve wheneverr it comes comes to its its maturi maturity ty level level Mehran Mehran attr attract actss the the peop people le who have have a sala salary ry packa package ge betwee ween 20, 20,000 to 30,000 per mont onth. The youngsters also prefer the Mehran because of its size and economical price. Small business people also prefer Mehran because of its low maintenance cost. Mehran also attracts people who move from bike to the cars. Price: Rs. 514,000/Unrivalled in its class, Mehran is Pakistan’s largest selling car. More smart features like head turning lamp, matching front grill and a two spoke steering wheel gives it the tidy look. Functional economy, peak peak perfor performan mance ce or unmatc unmatched hed fuel fuel effici efficienc ency, y, Mehran VXR is the leader.


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UZUKI PAKISTAN 201 0 Pearl Red, Red, Graphi Graphite te Grey, Grey, Solid Solid white, white, Colors: Pearl Silky Silver, Eminent Blue

APV Price: Rs. 1,775,000/APV 1500 cc (Imported) The New APV gives you ever everyt ythi hing ng you you ever ever want wanted ed in your your vehi vehicl cle. e. Spacious interior for comfort, tough engine to carry large loads and plenty of room for passengers to enjoy a comfortable day long ride. Pearl Red, Graphi Graphite te Grey, Grey, Solid Solid white, white, Colors: Pearl Indigo, Silky Silver, Aqua Blue, Eminent Blue

JIMNY Price: Rs. 1,850,000/JIMN JIMNY Y 4X4 4X4 JEEP JEEP 1300c 1300ccc (Imp (Impor orte ted) d) Stea Steady dy,, stur sturdy dy and and smar smart, t, Suzu Suzuki ki Jimn Jimny y with with new new wide wide tread brings you the ultimate pleasure of a real 4wheel drive. It has got all the sporting spirit to go along for adventurous free souls. Colors: Solid white, Silky Silver

BOLAN VAN Price: Rs. 609,000/The Suzuki Bolan Hi-roof gives you everything you ever wanted in a van. Spacious interior for comfort, tough tough engine engine to carry carry large loads and plenty plenty of room room for passenger passengerss to enjoy enjoy a comfor comfortab table le day long ride. Air-conditioned model (dual thrust) has been recently introduced. Colors: Pearl Red, Solid white, Silky Silver


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ALTO (1000cc) Price: Rs. 662,000/Alto has a bright, roomy and comfortable cabin which keeps body relax and strong and lighter body shell resulting in smooth drive due to reduction of unpleasant noise harshness and vibration. Its small turning radius and compact body make parking a breeze.

Olive Green, Green, Pearl Pearl Red, Graphi Graphite te Grey, Grey, Colors: Olive Soli Solid d whit white, e, Indi Indigo go,, Silk Silky y Silv Silver er,, Aqua Aqua Blue, Blue, Eminent Blue

RAVI PICKUP Ravi Ravi is for for the the peop peoplle doin doing g smal mall busi busine ness ss espe especi cial ally ly carg cargo o serv servic ices es like like home home deli delive very ry serv servic ices es,, TCS TCS and mark market et deli delive very ry.. All All peopl peoplee doing business of these types are loyal customers to Ravi Ravi.. Alth Althou ough gh the the comp compet etit itor or laun launch ched ed the the Shehzore which has captured the some market share of Ravi but although its sell did not decline too much. Price: Rs. 489,000/-

RAVI Pick Up 800cc Suzuki Ravi is the veritable cargo cargo vehicl vehiclee with with an amazin amazing g capaci capacity ty for load bearing and durability. Undoubtedly, the unrivalled commercial vehicle in its class, Ravi is the bread winn winner er for milli llions ons in Paki akistan stan.. Thi This light ght comm commer erci cial al vehi vehicl clee ref referr erred to as the mini mini revolution revolution,, replaced replaced the animal-dra animal-drawn wn vehicles vehicles in Pakistan. Colors: Pearl Red, Solid white, Silky Silver


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The Manufacturing Process:

Departments 1. Marketing Department

The marketing department of the firm comprises of highly qu alified, dedicated and hard working team, equipped with the latest marketing techniques.

2. Customer Relation (CR) Department

Suzuki Pakistan , Customer relations department nationwide falls under top 5 positions of national Suzuki Pakistan Dealerships Network. We believe in perpetual improvement in all fields of services and facilities as per Suzuki Pakistan Standards applicable globally, through regularly conducting Training & workshops to enhance knowledge and share experience of our fellow National CR- member and globally available experience of suzuki. The Customer relation department is one of the most important depa rtments which can control all the activities perform for the retention and benefit the customers. Suzuki Pakistan relations Ideals

Creating corporate trust based on integrity on integrity and fair handling of Complaints. • • • •

Opening a larger window for customers. Swift and sure handling of “Inquiries & Complaints” Making the” Voice of the customers” the basis for corporate renewal. Improving corporate image and better informing cu stomers to support Sales and Service activities.

1. Accounts Department

The accounts department is related to the accounts handling, the customer drafts of the for the booking of cars to the Suzuki Pakistan and the employees salaries, records of the transactions.


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UZUKI PAKISTAN 201 0 The salaries are giving on their ranks like the top management salaries are sent to their accounts while the lower level employees are gives cash salaries on the spot from the account department.

2. Sales Department

The Sales department is related to the sales of the Vehicles, The Sales department includes Customer Services (CS), Vehicle Delivery Inspection Quality (VDIQ), Record Maintenance, and Inquiries & Complaints Handling.

3. Customer Services (CS)

Customer service department is related to the external customer who is come to Suzuki Pakistan for the purchasing and booking of the suzuki Vehicle of any variant. The Customer service staff is well trained and sophisticated person because these are the people who can play an important role in the sales of a firm.

4. Record Maintenance

This department deals with the data/information about any customer and this shows comprehensive information about the customer data. Through this department the top management can see the sales and the demand of the booking of the cars. The record is maintained in this department is totally on the manual work, but the firm wants to made a computerized system.

5. Vehicle Delivery Inspection Quality (VDIQ)

This department deals with the over all checking ch ecking of the Vehicle at the time of arrival and the selling to customer. At arrival stage, the vehicle that come from the Suzuki Pakistan the Inspector check the vehicle and if any default occurs then it claim to the Suzuki Pakistan At the Selling perspective the inspectors inspectors check the vehicle so that the customer customer are more facilitate rather they have any problem faced after the purchasing.


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6. Inquiries & Complaints Handling

Another Department is also there that handles the Inquires and complaints of the Customers. As Suzuki Pakistan Company follow that complaints must directly come to them on their showrooms so customers can easily put their information directly to the Company through the dealers. 7-Steps of Complaint Handling

Step # 1 Receive the Complaint Step # 2 Look Listen and Learn (3Ls) Step # 3 Get the Facts Step # 4 Determine “Root Cause” and Responsibility Step# 5 Explain your decision then get Agreement Step # 6 Take Prompt Action Step#7 Follow-up

7. Human Resource Management Department

Human resource management refers to the activities a ctivities an organization carries out to use its human resource effectively. These activities include determining the firm's human resource strategy, staffing, performance evaluation, management development, compensation, and labor relations. Suzuki Pakistan Motor also running department of HRM for hiring and compensating the employees of the firm. HRM function to pay significant attention to selecting individuals whom not only has the skills required to perform particular jobs but who also "fit" the prevailing culture of the firm.

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Reward System

A Superior Quality Award can be given to anyone at anytime due to good performance. It does not matter how long a person has been in the organization. On an annual basis, bonuses are given to employees whose performance exceeds their targets. The main motivational factors are bonuses, pay-raises, promotions and Awards.


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Punishment System

Punishment is not necessary and common. Each and every employee knows that if they have to survive in the organization, they have to work hard for it. Everyone is expected to work. There are at least 3 jobs for one person. If punishment is absolutely necessary, it is usually in the form of a verbal warning and in some extreme cases, termination. 1. Service Department

Suzuki Pakistan motor Service Department strives for complete customer satisfaction. We service any make or model and our workshop trained master technicians have the experience and expertise to have your vehicle serviced the correct way the first time. Let us be your automotive servicing specialists. TAM service Department undertaken extensive training training of its service staff by sending them to attend 30-specialized course conducting over a year for service managers/service advisors, service Engineers and Technicians by the Suzuki Pakistan motors.

Equipped Workshop

The firm workshop is equipped with highly sophisticated and latest technology equipments and providing services . • • • • • • • • • •

Engine Analyzers Computerized 4 wheel alignment equipment Paint Booths Special Service Tools 2 Post Auto Lifts Wheel Balance Frame Aligner (some dealers) Wide Range of Garage Equipment Body Repairing Equipment Electrical Service Equipment

It makes good sense to take your vehicle to Suzuki Pakistan for service. Suzuki Pakistan technicians are well-trained specialists. And they are receiving the latest service information through technical bulletins, service tips, and in-dealership training programs. They learn to work on suzuki before they work on your vehicle, rather than while they are working on it. Your Suzuki Pakistan service department will perform all of the scheduled maintenance on your vehicle – reliable and economical.


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1. After-Sales Department

The vehicles sold by the company are fully backed by after sale free service for o ne year under the rules of Suzuki Pakistan. Suzuki Pakistan is providing same facilities to his customers as pe r Suzuki Standard applicable World Wide. Our After Sales department is on e of the examples. It has Latest Equipments like 4-wheel Alignment machine. TAM service team members are always ready to serve our valued customers as per Suzuki Pakistan. 2. Spare Parts Department

Firm has a shop for availability of genuine parts of all sorts of Suzuki Pakistan Cars for the convenience of his customers. In Suzuki Pakistan Motors there is a separate “Parts Reception Area” to serve their external customers and as well as the local dealer, not only the Suzuki Service department used these parts. Our Shining Stars Speak for themselves We ensure the genuineness of the parts that go into your vehicle. We guarantee long life and optimum performance of parts. That's why; we provide warranty for all genuine parts. We provide technical assistance for the right choice of parts.

Suzuki Genuine parts Advantage • • • • • • •

Better & Smoother engine performance. Improved efficiency in fuel consumption. Ensures trouble free driving. Quality parts supply through strict quality check by Suzuki Pakistan Designed by Suzuki to fit in your vehicle. Durability coupled with lasting quality performance. Proves to be cost effective in the long run due to increased life of genuine parts.

Ware House


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UZUKI PAKISTAN 201 0 Suzuki Pakistan Motor has a separate parts area in which all kind of parts available in access quantity. A separate database is there to maintain the record of inventory or stock so that it can better facilitate the firm to avoid the Out of Stock situation.

Components •

The The auto automo mobi bile le asse assemb mbly ly plant plant repr repres esen ents ts only only the the fina finall phase phase in the the proce process ss of manufacturing an automobile, for it is here that the components supplied by more than 130 outside outside suppliers/ suppliers/vendors vendors,, including including company-owned company-owned parts which are known as “Maru” (which includes Engine, Transmission and Braking system), are brought together for assembly, usually by truck. Those parts that will be used in the chassis are delivered to one area, while those that will comprise the body are unloaded at another.

Chassis •

•

The typical car or truck is constructed from the ground up (and out). The frame forms the base on which the body rests and from which all subsequent assembly components follow. The frame is placed on the assembly line and clamped to the conveyer to prevent shifting as it moves down the line. From here the automobile frame moves to component assembly areas where complete front and rear suspensions, gas tanks, rear axles and drive shafts, gear boxes, steering box components, wheel drums, and braking systems are sequentially installed. An off-line operation at this stage of production mates the vehicle's engine with its transmission. Workers use robotic arms to install these heavy components inside the engine compartment of the frame. After the engine and transmission are installed, a worker attaches the radiator, and another bolts it into place. Because of the nature of these these heavy heavy compon component ent parts, parts, articu articulat lating ing robots robots perfor perform m all of the lift lift and carry carry operations operations while assembler assemblerss using pneumatic pneumatic wrenches wrenches bolt component pieces in place.


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UZUKI PAKISTAN 201 0 Careful ergonomic studies of every assembly task have provided assembly workers with the safest and most efficient tools available.

Body •

Generally, the floor pan is the largest body component to which a multitude of panels and braces will subsequently be either welded or b olted.

•

The front and rear door pillars, roof, and body side panels are assembled in the same fashion. The shell of the automobile assembled in this section of the process lends itself to the use of robots because articulating arms can easily introduce various component braces and panels to the floor pan and perform a high number of weld operations in a time frame and with a degree of accuracy no human workers could ever approach. Robots can pick and load 90 kilograms roof panels and place them precisely in the proper weld position with tolerance variations held to within .001 of an inch. Moreover, robots can also tolerate the smoke, weld flashes, and gases created during this phase of production. p roduction.

•

As the body moves from the isolated weld area of the assembly line, subsequent body components including fully assembled doors, deck lids, hood panel, fenders, trunk lid, and bumper bumper reinfo reinforce rcement mentss are instal installed led.. Althoug Although h robots robots help help worker workerss place place these these components onto the body shell, the workers provide the proper fit for most of the bolt-on functional parts using assisted tools.

Paint •

Prior to painting, the body must pass through a rigorous inspection process, the body in white operation. Under the lights, this oil allows inspectors to see any defects in the sheet metal body panels. Dings, dents, and any other defects are repaired right on the line by skille skilled d body repairme repairmen. n. After After the shell shell has been been fully fully inspec inspected ted and repair repaired, ed, the assembly conveyor carries it through a cleaning station where it is immersed and cleaned of all residual oil, dirt, and contaminants.


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UZUKI PAKISTAN 201 0 •

As the shell exits the cleaning station it goes through a drying booth and then through an undercoat dip—an electrostatic ally charged bath of undercoat paint (called the E-coat) the E-coat) that covers every nook and cranny of the body shell, both inside and out, with primer. This coat acts as a substrate surface to which wh ich the top coat of colored paint adheres.

•

Once the shell has been fully covered with a base coat of color paint and a clear top coat, the conveyor transfers the bodies through baking ovens where the paint is cured at temperatures exceeding 275 degrees Fahrenheit (135 degrees Celsius).

Interior Assembly •

11 The painted shell proceeds through the interior assembly area where workers assemble all of the instrumentation and wiring systems, dash panels, interior lights, seats, door and trim panels, headliners, radios, speakers, all glass except the automobile windshield, steeri steering ng column column and wheel, wheel, body body weathe weatherr strips strips,, vinyl vinyl tops, tops, brake brake and gas pedals pedals,, carpeting, and front and rear bumper fascias.

•

Next, Next, Worker Workerss equipped equipped with with sucti suction on cups remove remove the windsh windshiel ield d from from a shippi shipping ng container, apply a bead of urethane sealer to the perimeter of the glass, and then place it into the body windshield frame. Works also pick seats and trim panels and transport them to the vehicle for the ease and efficiency of the assembly operator. After passing through this section the shell is given a water test to ensure the proper fit of door panels, glass, and weather stripping. It is now ready to mate with the chassis.

Mate

The chassis assembly conveyor and the body shell conveyor meet at this stage of production. As the chassis passes the body conveyor the shell is robotically lifted from its conveyor fixtures and


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UZUKI PAKISTAN 201 0 placed onto the car frame. Assembly workers, some at ground level and some in work pits beneath the conveyor, bolt the car body to the frame. Once the

Customer Satisfaction:

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In this Section this chart actually shows that how much they give importance of their Customer. The single complain of customer can take all process as chart. Pak Suzuki’s main aim to control their quality and services and they maintain the high standard of quality in result to gain the trust of customer .They don’t compromise with any kind of customer dissatisfaction. That why they take quickly action in any type of Problem or complain For maintaining maintaining quality standard standard products and the Customer Satisfaction Satisfaction Pak Suzuki company hired some Technical Auditors to make sure and check quality of standards at every level. Then they have a Joint Conference Where all higher level managers are their to discuss the issue and try to resolve that problem by getting the root cause his way help to retain the Pak Suzuki customers. And we found from this that 95% customers satisfied from Pak Suzuki Company.

Quality Self Assessment Analysis: Leadership: Senior Executives provide leadership by helping there subordinates in any queries they face without any hesitation, they are also given responsibility for ensuring quality value are adhere outsid outsidee the compan company. y. Qualit Quality y values values are clearl clearly y define defined d both both intern internall ally y and extern externall ally, y, the employ employees ees are given given clear clear instr instruct uction ion about about maintai maintainin ning g quality quality throug through h formal formal writte written n proced procedure ures, s, the Pak Suzuki Suzuki is basica basically lly not a custom customer er driven driven compan company y the general general qualit quality y standa standards rds are not defined defined by the customer customerss because because they have a strong strong market market share share due to monopoly in the market. The structure of the organization is such each department goes under quality checks, the plant works believe that quality is everyone’s responsibility. For evaluating and improving awareness of use of quality values the company provides training related to quality and periodic quality inspections are done. As Pak Suzuki is subsidiary of SMC most of the action plans are blue printed at Mother Company but when ever there is a quality issue quick look smooth actions are taken to solve that matter.


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UZUKI PAKISTAN 201 0 Information and Analysis The company uses statistical techniques to examine the records, they have close relationship with buyer buyer and suppli suppliers ers,, and the data data collec collected ted from from buyers buyers and suppli suppliers ers is cheeked cheeked through through statistical models, and the data is accessible for both the parties. The company it self is not that much engage in reducing the cycle time because they are bound by the SMC to follow there pro proce cedu dure ress and and if ther theree may may be a sugg sugges esti tions ons from from any any sour source ce with within in the the orga organi nizat zatio ion n authorizati authorization on is required required by the parent company. In order to met the demand of Automobile Automobile PSMC PSMC takes supplie suppliess of each part from two venders venders in order to be in depende dependent nt and to be competitive in quality aspect. In order to set benchmarking the adopt customer card approach what every the customer wanted they create benchmark accordingly. Company establish their performance by eliminating waste by corrective actions, such as a maintained of machines on dail daily y basi basiss and sche schedu dule led d basi basiss each each work worker er at the the end end of the the check checkss mach machin iner ery y for for the the verification of 100% working condition.

Strategic Quality Planning: PSMC PSMC seems seems to have les focus focus on future future customer customer as they they don’t don’t introd introduce uced d any creative creative approach in Automobiles like Mehran and Cultus by simply changing Grill, Head and tail lights. Company has created a monopoly in Pakistani market there products are driven in all parts of the country country in mass numbers. numbers. The competency competency of PSMC is Asia’s best Assembly Assembly facility facility and they have good brains working in the company which have understood the market demand pattern. Company gives priority to ensure that policies are implemented and evaluated a every level of the organi organizati zation. on. The compan company y has strict strict policy policy for aligni aligning ng of subuni subunitt activa activates tes,, and it is contro controlle lled d and monit monitore ored d through through cycle cycle time time becaus becausee each subuni subunitt depend depend other other unit unit for completion of work, each unit assigned a cycle time and the activities are further coordinated by subunit managers and General Manager of Quality Assurance. Assurance.

Human Resource Development and Management When training about certain field is offered to the works company by the mother company SMC workers themselves decide whether to take the offer or not, the departmental Heads suggests names of workers to top management and then names are announced. The training could of six weeks, one year or three years. As they told us that before sending any employee to training, bonds are signed from employees and because the employees becomes an important asset of the company for which company is spending so much money by sending them to Japan and other countries countries and they are bound to share there knowledge knowledge and experience experience which they have gain to other employees at the plant in order to increase the performance regarding Quality. PSMC has


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UZUKI PAKISTAN 201 0 signed a verbal deal to there nearest competitors that no employee of IMC would be hired by PSMC and no employee of Suzuki would be hired by IMC. As Hr department is high active in doing all its functions functions they have developed developed structured structured criteria criteria for recruiting recruiting fresh trainees trainees from different collages of Karachi. The Departmental Heads of the concerned Unit will assess training of Employees at the time of Hiring. The company strives to continually personnel practice and monit monitor or through through Qualit Quality y Syste System m Traini Training, ng, the course coursess contai contain n an overvi overview ew of the Quality Quality System.

Management of Process Quality Customer and quality requirements are addressed through a control process, the process involves all depart departmen ments ts of the company company.. The LPD (Local (Local Parts Parts Depart Departmen ment) t) is respon responsib sible le for the production of the parts which are made locally, once the sample is given by the vendor its sent to mother company SMC for approval and when its approved orders are given to multiple vendors. Now the LPID (Local Parts Inspection Department) continues inspects the vendors and if there are any issues steps are. PSMC don’t build any alliance with any vendor, vendor, so in order to get the defect free material material for each part two vendors are selected and LOI (Letter (Letter of Indent) Indent) is signed and if poor performance is recorded the company issues a one month prior notice. The company mainta maintain in quality quality of proces processs in accorda accordance nce with with the inspect inspection ion,, testi testing ng and intern internal al audits audits.. Company has rigid process and needed to work on in improving the process the product design. The company analysis’s the product and service data by comparing it with previous performance for continuous improvements. The relationship with suppliers is of one off and depends upon the quantity of consignment the parts are rather produce or purchased from the outside sources. Company helps there suppliers in term of new technology or any technical assistance at any time, they think in direct this will help to maintain a Good quality parts and this will lower the cost of monitoring.

Quality and Operational Result Company documents current level of performance on all key measures like accuracy, timeliness, after sale services. The documentation is recorded from all employees of the company except the front front line line worker workers. s. The front line line works works are hired through through third party out sourci sourcing ng Umer Umer Corporation. The Managers and Asst. Mangers bound to record there day to day activities after performing it practically. Key indicators for quality and performance are done through the number number of units units prepar prepared ed and the amount amount of wastag wastagee of raw material material.. Docume Documenta ntati tion on of supplier’s performance is done suppliers evaluation form and comparing the past performance of the suppliers, the process timeliness and defects in order to avoid future uncertainty problems materials are strictly check before putting into the car.


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Customer Focus and Satisfaction PSMC can better understand the need of customer that’s why by th time they show creativity and innovations as customer wants. Pak Suzuki gives a quick response to customer for any query which is happening on continuous basis so they are stronger in building relationship. Pak Suzuki gives all information information & details details before before delivering delivering the product to ensure ensure that customer formulate formulate the accurate expectation of product and services, company use the information for continues improvement through by taking feedback. Pak Suzuki aim to focus on quality from lower staff to upper all have responsibility to maintain the quality to maintain and strong relationship with customers. Company by the time measure the customer satisfaction attribution and check the level of satisfaction with the competitors.

1. Leadership

2. Information and Analysis

3. Strategic Quality Planning

4. Human Resource development and Management Total Quality Management

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5. Management of Process quality

6. Quality and Operational results

7. Customer Focus and Satisfaction

CONCLUSION


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UZUKI PAKISTAN 201 0 After completing this project we conclude that Suzuki enjoyed the 67 per cent of the 800-2000 cc passenger car market in Pakistan. The Suzuki is also aware of the emerging competition in the small carr segm ca egment and and has drawn rawn up a well well plan lanned ned st stra rate teg gy to maintain its market lead by bringing new models this year. SUZUKI has strong position in market and also have strong and good customer relationship.

RECOMMENDATION: Suzu Suzuki ki Mo Moto tors rs shou should ld expa expand nd Euro Europe pean an and and As Asia ian n mark market et,, concentric diversification, bring in recreational vehicles, acquires or develop new product that could appeal to its current customer groups even though those new products may be technologically unrelated to the existing product lines


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UZUKI PAKISTAN 201 0 Bibliography http://www.paksuzuki.com.pk

http://www.google.com

http://en.wikipedia.org/wiki/Pak_Suzuki_Motor

http://www.globalsuzuki.com

News Papers,

Business Review magazines


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Pakistan Suzuki

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