PAK Suzuki Motors Company Limited: Operations Management: Teacher: Sir Khurram Amin

PAK
SUZUKI MOTORS COMPANY LIMITED
OPERATIONS MANAGEMENT:
TEACHER: SIR KHURRAM AMIN
GROUP MEMBERS:
MUHAMMAD HASAN AMIR (9682)
WARDA TARIQ (8043)
FAIZA BAIG (7650)
RAWAHA SIDDIQUE (9639)
SYED MUHAMMAD YAHYA (7580)
AMAN ULLAH KHAN (5957)
M.AHSAN KHAN (10121)
PAK SUZUKI MOTORS COMPANY LTD.
INTRODUCTION:
Pak Suzuki Motor Company Limited (PSMC) is the largest player in Pakistan's automobile industry.
The company, incorporated in 1983 following a joint venture between Pakistan Automobile
Corporation (PACO) and Suzuki Motor Corporation (SMC) Japan, accounts for more than half of
the cars and light commercial vehicles produced and sold in the country today. The company started
commercial production in 1984 with the primary objective of possesive manufacturing, assembling
and marketing of cars, pickups, vans and 4x4 vehicles in Pakistan. The foundation stone laying
ceremony of the company’s existing plant located at Bin Qasim was performed in early 1989 by the
Prime minister then in office. Realising the potential of automobile sector in Pakistan, SMC Japan
began to gradually increase its shareholding in Pak Suzuki following the deal initially its equity
stake was 12.5 percent. When Pak Suzuki got privatised in 1992, the Japanese giant acquired
additional shares from PACO to boost its shareholding to 40 percent and took over the management.
As of 2014-end, SMC Japan owns nearly three-quarters of PSMC.
VISION:
To be recognized as a leading organization that values customer’s needs and provides motoring
solutions with strong customer care.
MISSION:
 Develop products of superior value by focusing on the customer.
 Establish a refreshing and innovative company through teamwork.
OPERATION MANAGEMENT:
Operation management,a process that involves planning, organizing, managing, controlling and
supervising the production and manufacturing processes.
OPERATIONS:
The firm is rightly the pioneer of the auto industry in Pakistan. The company has come a long way
from the industry's nascence period in 1980s. Pak Suzuki has the largest automobile assembly
facility in Pakistan; it can produce 150,000 units per annum as compared to a capacity 50,000 in
1992. The company also has the largest dealers' network (sales, service and spare parts) in Pakistan.
By the end of 2014, Pak Suzuki had a total of 86 dealerships in 38 cities.
Transform inputs into final product form through machining, packaging, assembly, equipment
maintenance, testing, printing and facility operations. manufacturing facility consists of fully
integrated plants with flexible assembly lines located at Karachi.
Pak Suzuki specialises in small and medium-sized cars, with many of the vehicle models on its
assembly lines being those retired internationally. Being a producer of relatively inexpensive cars,
the company faces massive demand in both urban and rural Pakistan. Pak Suzuki Company also
designs and manufactures motorcycles, commercial vehicles and outboard motors.
FACTORS OF PRODUCTION:
 Land, Pak Suzuki has its own land at Downstream Industrial Estate of Pakistan Steel,
Karachi with Total Area of 259,200 m2 (64 acres).
 Labor, including all human resources, delivered her services in double shift
 Capital (including all man-made resources), 150,000,000
 Enterprise (which brings all the previous resources together for production).
INBOUND LOGISTICS:
Inbound Logistics i.e. the receiving and warehousing of raw materials, and their distribution to
manufacturing.
Pak Suzuki’s inputs primarily comprise raw materials and purchased components. Raw material
includes rubber, glass, steel, plastic, aluminum. Wheels, airbags are example of parts or
components. The company procures most of these raw materials from Japan, Korea and Thailand
and has implemented tierization of suppliers and Just in Time supply logistics
In order to improve quality and generate economies of scale, Pak-Suzuki has reduced the number of
vendors of components in Pakistan from 250 as of March 31, 2007 to about 112 as in 2009. By
lowering the time and cost involved in dealing with more vendors, they have increased their supply
chain efficiencies in case of repair and replacements, costs of defective components supplied are
borne by the vendor.
Vendors are linked through an ERP process management system (SAP), which maintains
information regarding operation management, production planning, supply chain division and
warehousing. This software has helped in better scheduling, both inventory levels and lead times
required for the supply of various components. The company has instituted sustainable practices in
its relationship with vendors like communicating realistic volumes to avoid excess capacities and
inventories and making quick payments to facilitate healthy cash flows and financial discipline.

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PAK

SUZUKI MOTORS COMPANY LIMITED

TEACHER: SIR KHURRAM AMIN

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