Brief introduction/need/objective/problem definition

Atlas Honda is a bike manufacturing company which sells its bikes all over the Pakistan through
an integrated group of dealers. It is the largest motorcycle manufacturer and market leader
with more than 60% share. It is the joint venture of atlas and Honda group of Japan. Now the
Atlas group is become very large group of Pakistan holding more than ten companies including
Atlas Honda
Atlas Battery
Atlas Power
Atlas Engineering
Atlas Metals
Atlas Hitec
Atlas Auto
Atlas Die Casting
Atlas Aluminium
Honda Atlas Cars
Atlas Honda is a public listed company that was incorporated on Gregorian calendar month sixteen,
1962. it's a joint collaboration between Honda Motor Company restricted Japan, the most important
and most purported motorbike complete within the world, and Atlas cluster, one in all Pakistan’s most
famed business conglomerates. the corporate is mainly engaged in progressive producing and selling of
motorcycles and spare elements.

Atlas Honda restricted is that the largest motorbike manufacturer in Islamic Republic of Pakistan with
the strongest complete price and highest client loyalty. the corporate is taken into account a pioneer of
bike trade within the country and has been leading 2 wheeler market with success for over fifty years.

The Company presently encompasses a production capability of over one.35 million units each year and
continues to keep up its standing as market leader each in terms of volume and quality. It conjointly
exports its motorcycles and spare elements to Asian country and Asian nation.

With highest quality product, state of the art producing facilities, largest business organization network
& impeccable when sales service, Atlas Honda restricted is these days thought-about a benchmark for 2
wheeler producing. it's been with pride and with success fulfilling its role because the flag bearer of bike
trade in Islamic Republic of Pakistan.
As one in all the most important tax payers within the personal sector and being one of the simplest
employers within the country, Atlas Honda restricted stands as a beacon of sunshine for the company,
social and intellectual sectors of Islamic Republic of Pakistan.

Vision

“Market leader in the motorcycle industry, emerging as a global competitive centre of production
and exports.”

Mission
“A dynamic growth oriented company through market leadership, excellence in quality and service
and maximizing export, ensuring attractive returns to equity holders, rewarding associates
according to their ability and performance, fostering a network of engineers and researchers
ensuing unique contribution to the development of the industry, customer satisfaction and
protection of the environment by producing emission friendly green products as a good corporate
citizen fulfilling its social responsibilities in all respects.”

Products

 Honda CD70
 Honda CD Dream
 Honda Pridor
 Honda CG125
 Honda CG125 Special Edition
 Honda CB125F
 Honda CB150F
 Honda CB250F

Problem statement
Chain & Sprocket issues in Honda CD 70 bike
Detail of current scenario/problem/structure/practice
Chain & Sprocket issues in Honda CD 70 bike. Chain & Sprocket is the chain gear set which is
considered as the main part of the bike. Whenever new bike is sold to the customer it becomes
noisy and also its start wear and tear. The customer started complaints. The supplier name ……
is a local manufacturer The company decided to provide 6months warranty to their customers
so that’s why they can replace their defective Sprocket. But the after few months’ customer
faces many hurdles in replacing that part. Company also faces loss because they accept the
claims from customer but their supplier doesn’t accept some of those claims. Customer also got
annoyed because the perception of people in Pakistan about Atlas Honda is very positive.
Customer hope that they will provide products up to the mark. But here the situation is totally
different. The negative effect starts moving into the customers mind. While talking with R&D
manager & local mechanic of Atlas Honda we got to know that the Chain & Sprocket started to
be depreciate after 1-2 months. The actual life of that part which was committed by the
supplier is 12-18 months or 20000 KM. The performance of bike is decreasing day by day. After
few months the problem becomes uncontrollable. Due to this the sales of Honda CD70
decreases. The customer switched to the other brands because the company is not fulfilling the
requirements of the customer.

Process of problem solving including the tools used/ approach of the project plan
The R&D department start working that how to solve that problem. They decided to change
their supplier and make a partnership relationship with their new supplier. They make a criteria
to select a vendor.

 Give parts to vendor for development.

 Receive develop parts from supplier
 Quality Inspection.
 Visit & Inspection of vendor plant.
 Price Negotiation.
 Warranty policy.

Recommendations
The company had done well. This is the best way to solve that problem. If the relationship with
supplier is strong it will help to increase the quality of product. That’s why now the Atlas Honda
should make a partnership relationship with there new supplier name DID CO. The product
quality remains same for a long period of time because the supplier of the company had a
partnership relationship. Partnership between company and supplier is one of the main keys for
obtaining high quality of products and services. They work together as partners to maximise the
return on investment because they have limited resources. Supplier Partnership is a
commitment over a long period of time to work together for the mutual benefit of both parties,
sharing relevant information and the risks and rewards of relationship. An extended
relationship between sellers and buyers based on confidence, credibility and mutual benefits.
Benefits that will occur after implementation
Customer retention
The quality of product remain same
Making long term relations with supplier will be beneficial for both.
Sales will increase
Brand Loyalty
What will it take to implement the project?
Conclusion