HONDA ATLAS CARS (PAKISTAN) LIMITED

MANAGEMENT INFORMATION SYSTEMS

Submitted to: Ms. Beenish Zaheer

Introduction

Honda Atlas Cars Limited is a joint venture between Honda Motor Company Japan and the Atlas
Group of Companies, Pakistan. Honda was established in 1994 in Pakistan. Their head office is
in Manga Mandi and their marketing department is in Defence Lahore. It’s a business to business
organization. Honda Atlas has been a pioneer in introducing several technologies for the first time
in Pakistan such as PGMF-1(Programmed fuel injection), VTEC (Variable Value Timing and
lift electronic control, Automatic transmission, Crystal lights, Oriel(Roof with both tilt and slide
functions), Four wheel Disk Brakes and ABS Brakes(Anti-lock braking system).

They make 80 cars per shift. Currently they are offering 8 different models of Honda CIVIC and
CITY in a wide range of colors with unique technological features. Over all 10% of the system is
computerized while the rest of the 90% of the work is done manually.

The information, based on their research, provided by the marketing department serves as the input
for Honda. The production department processes the demand with the help of the parts and produces
cars as an output.

The suppliers are

1. Kansai
2. Nippon
3. Berger
INFORMATION SYSTEM IN THE PRODUCTION DEPARTMENT

● PLC- Program Logic Control system is a system where the robots wield the parts in the
main jig. It is completely computerized and there is a separate jig for Civic and City.
● Electro Deposition is a computer controlled process in which the Chasis is taken to a paint
deposition in which it is dipped for four minutes. In this time, the paint reaches each and
every part which results in protection from rust in the future. Later it is kept in the oven for
baking.
● HVAC- Heat Ventilation and Air Conditioning is a recent system which is controlled by
computers. It checks the air conditioner against pressure and different temperatures. The
automatic system has resulted in fewer complaints from customers.
● Bearing is a part which is placed between the crank shaft. The size of the bearing differs and
its accuracy is very important. Each bearing has a code on it which needs to be fed on the
computer which in return instructs the labor about the accuracy of the bearing and how it
needs to be installed.
● The wheel and headlight alignment is also computerized. The computer instructs the labor
about the appropriate positioning of the two parts. This reduces the chances of mistakes that
can take place by humans.
● LET- Line End Tester is the final check by the computer. A laborer drives the final car and
a LET is attached to the switch. All the info of the car is checked as the software is installed
in the device. Any problem detected is sent out to the production department system for
checking.
Hardware and Software

Hardware: It is a physical component which is tangible and can be touched.

Different hardwares being used at Honda:

AS/400 - AS/400 is the name for the previously known "IBM iSeries". It is a midrange server
designed for small businesses and departments in large enterprises. It has huge disk storage ranging
as much as upto multi-terabytes which can easily store big data. The AS/400 is intended to be
turned into an all-purpose server which can replace PC servers and Web servers around the world's
businesses.

Honda is utilizing AS/400 for several tasks. All application are developed and run on this system.
RPG II and COBOL are the languages which are used to make applications particularly designed for
the company.

Along with this system, there are approximately 300 individual pc’s being used by the employees.
Moreover, there are about 12-14 servers in Honda production plant situated near Maanga Mandi. A
few examples of the servers include backup servers, mail servers, gateway servers, proxy servers.

System/34 - abbreviated as S/34 is a minicomputer marketed by IBM. It was a multi-tasking

computer which could be used by many at the same time and was a successor to the single-user
System/32. The System/34 was mainly programmed in the RPG II (programming) language. This
system ran smoothly on 64K of memory.

Honda had previously implemented S/34 which was replaced by AS/400, which has proven to be
more efficient and latest.

DB2 - It is a one of relational database management system (RDBMS) products from IBM that are
used for various operating system platforms. DB2 is excelling in terms of database market share and
performance. DB2 offers the industry great performance, efficiency, scale and reliability.

Honda makes use of DB2 in such a way that it stores the company’s data – data ranging from
customer records to sale records and other orders. Moreover, Honda is also making use of LTEO4
and data storage tapes for storing data. Plus, personal, individuals computers are also there to help
share the burden.
BACKUP PLANS

When Honda started operating in Pakistan in 1994, the systems were not too much secured back
then. A virus attack was launched on the company but fortunately it did not harm much. Since
then, the computer systems’ security has been increased, which will be covered later in detail.
Aforementioned details explain that AS/400 has its own disk storage and DB2 also is used to store
data. In addition to that, magnetic tapes and data storages tapes are also being used at Honda.

Software: It provides set of instructions that controls a computer system. It is intangible and can not
be touched with hand.

Different softwares being used at Honda

CRM: CRM is also being used at Honda, to maintain Customer Relation Management, though, it is
not fully operated yet.

MIS: It is being used at Honda for keeping walk-in records, customer record and for creating
reports. It’s a pre-sale software.

Donet: It is a software that deals with after-sale records. It’s a post-sale software.

Microsoft Excel: MS Excel is another software being used at Honda. Attendance record at the head
office which is located in Y-block makes use of Excel sheets.

NETWORKS

Network - A network is a collection of computers and devices connected by communications

channels that facilitates communications amongst users and allows them to share and distribute
resources with other users. They are various types of networks:

Internet: It is a system of interconnected computer networks which are globally connected. It carries
a wide array of information and resources which is accessible to different sorts of users.

Honda is making use of the internet by creating their website where the customers can post their
complaints by putting in the frame number of their vehicle.. It links the customers and the production
unit, and the latter further contacts sellers. Also, Honda production plant is connected to its dealers
and the head office through regular e-mails.

Honda also has a VPN (Virtual Private Network) which provides a secure connection between two
points and data can be transmitted. It minimizes cost by providing a low-cost organization

Intranet: It a private type of communication network and is used within an organization. Only the
people within that organization can access it and hence it provides easy access to internal websites,
and other resources and applications.

Honda has its own intranet to communicate with the employees within the organization, with its
production plant for instance.

Extranet: It a type of network which is used to connect selected resources of a company to the
people who are not within the company, for instance extranets maybe used to link a company with
its suppliers, customers and other business partners.

Honda also has an extranet that connects it with its suppliers, dealership and customers. As Honda is
associated with Japan, they need it to connect to the company heads over there. The company heads
in Japan keep a check and also send annual plans through it.

FIREWALL AND ANTIVIRUS

Firewall: It is a special security software used to block unwanted access to a private network,
devices or computer systems. It keeps the unwanted and unauthorized traffic away.

Honda is using AS/400 which has its own firewall whereas the employees have their personal
computer secured by different firewalls like the operating system’s default firewalls and sygate
firewall etc.

Antivirus: It is a protective software built to protect computer systems from malicious and
potentially dangerous softwares, viruses, malwares etc. that can along with tampering with the
content can also steal data from a pc.

Honda has Kaspersky Enterprise version installed on the central server, which protects its systems
from the above mentioned potential hazards.

DEPARTMENTAL INTEGRATION
This part of the report describes how all the departments within Honda are connected to each other
so that smooth functioning of the activities within the organization can be ensured. As mentioned
above, an enterprise resource planning software has been developed (using AS400) which
facilitates the integration of different departments.

Overview of the system:

An overview of the system will help in understanding how all the activities within the organisation
are coordinated.

● The customers place orders to dealers who act as middlemen.

● The dealers send this information to the sales department using e-mail or courier.
● The sales department receives orders from various dealers and forwards the information to
the marketing department at the manufacturing plant.
● The sales department in Y-block Defense is connected to the manufacturing plant in Manga
Mandi through a secure Virtual Private Network.
● It is the responsibility of the marketing department to determine the number of cars to be
produced. This decision is based on the analysis of number and type of orders made by
customers.
● Using LAN connection, the marketing department conveys the relevant information to the
production and finance department.
● The production department needs the information so that inventory can be controlled.
Engines have to be ordered from Japanese suppliers (through e-mail) and other parts be
manufactured locally so that cars can be assembled just in time.
● The finance department requires the information so that the process of costing can be carried
out and budgets can be prepared.
● All the departments convey information regarding employees attendance and their
productivity to the HR department so that performance of the employees can be evaluated.

Through VPN
Through e-mail

Sales Department
Marketing Department

HR Department
Dealers

Finance Department
Production Department

Data Marts and Ware houses

AS 400 has helped Honda in developing a data warehouse which is stored on DB2. This data
warehouse stores all the current and historical data of the organization. Therefore all the data,
regardless of its source is consolidated and integrated in one database.

For the convenience of each department in Honda, data marts are designed which are basically
subsets of data in a data warehouse. These data marts ensure that specific information relevant to
each department is readily available to them.
The creation of data warehouse and data marts help the employees at different levels in decision
making. A range of queries can be run which enable the concerned departments in extracting the
required information. The information obtained helps in the generation of reports.

SALES DEPARTMENT

Honda has just started with its CRM system. It helps Honda with some of the after sales queries and
surveys. This also helps to track down its customers. Even though system has been put forward but
it’s not fully operated yet.

The CRM for example is in a way used on its website. Even though Honda has its website, it is not
being used for e-commerce or direct selling of cars. However, a customer can launch his complains
here. He would have to submit his complain alongside the car’s bonnet number. With the help of
their CRM system Honda will suggest the nearest Honda dealership center to the customer.

Honda does not directly deals with its clients. The product distribution channel it chooses is through
the car dealers as their middle person or agent. Dealers only work as commission agents and cannot
therefore sell the cars on their own. When, a customer places an order at any of the Honda dealer’s
showroom, the dealer will notify the Honda’s head office and sales department through e-mail or
VPN about the order and its details like color and other features. The sales department generating
the orders report will send it to the production department. When the orders are completed according
to the information provided to them, the sales department generates the sales receipt and invoice as
dealers cannot do it themselves. The receipt will contain the amount of commission to be given to
the dealers added on to the car’s base price.

The sales department interlinked with MIS, also uses it for generating reports like forecasted
sales and trends. These sales forecasting helps them in setting pre-production targets and ordering
supplies.
The Honda Company orders its spare parts rather than manufacture it at its plant. It uses the system
of N-3 or N-4 to order these parts needed for production either 3 or 4 months before, production
takes place. This is the part of their SCM.

The SCM is usually handled through e-mails with their suppliers. They use excel sheet as their basic
ordering format, and use internet as their network of communication with them.

APPLICATIONS FOR CUSTOMER RELATION MANAGEMENT

A market information system employs procedures and practices to analyze and assess market
information gathered from sources inside and outside a firm. Timely market information provides
basis for decisions such as product development or improvement and helps a firm manage its
customers in a better and efficient way.

Honda also uses a web based application, Market Information System, developed on Cisco Systems.
This again was in in-house development in mid 2009.

Basic purpose of this application is Customer Relation Management (CRM). This is done by
collecting customer data, generating reports based on this data and then further by analyzing these
reports.

MIS is installed at all Honda dealership outlets throughout Pakistan and is also accessible by the
sales and marketing departments at the head office. The application is run using Honda’s Virtual
Private Network (VPN).

Functions of MIS

i. Main Screen:
This is the homepage or the index screen after the user logs in using his/her ID for this application. It
displays a list of all the activities such as:

● Pending follow ups

● Insurance renewals
 ● Registration expiry
● Upcoming customers’ birthdays and anniversaries
A bulletin board on this index page consists of the latest news or notifications for sales staff and the
dealerships.

ii. Data Entry:

This module is used to record all the information of any customer interaction i.e. in the form of
walk-in, telephone call, sales visit, referral or email inquiry. First a customer interaction form
is filled and then this data which consists of fields such as name, contact numbers, birthday,
correspondence address and details of car history is entered into the MIS system and according to the
customer type, individual or corporate a pink or white card is assigned respectively.

How the card system works

After the initial cards that are pink and white have been assigned, when a sale is made the operator
saves the customer record as sold and converts these cards into yellow card by entering additional
information.

This clearly creates a distinction between follow up or deferred customers and those to whom a sale
has been made.

iii. Posting
This option allows any operator to put up some information for others or make an announcement on
the bulletin board.

iv. Report Generation

The Reports Menu can generate different reports showing detailed information for the period
specified. It is used to drive the statistics of the issues stored in the database based on the required
parameters.
The following reports can be generated:

● Follow up report
● Customer birthday report
● Customer marriage anniversary report
● Staff activity report
● Pending insurance & Registration expiry report

v. Inquiries
All customer records can be searched through their name, date of data entry, NTN number, NIC
number, credit card data, and phone numbers using this data mining module.

vi. DONet:
To maintain after sales Customer Relation Management, Honda uses DONet. It enables smooth flow
of information to the production department in case of any complaint.

● Handles all the customer data to provide after sales service which includes repairs history,
complete car maintenance records and the level of customer satisfaction on each visit to the
dealership workshop.
● In addition to these functions, DONet also maintains the inventory of spare parts and the
level is maintained according to the customer demand.
MIS OPERATIONAL FLOW CHART