Business-Process Re-engineering for Indus (Toyota) Motors

PROJECT DESCRIPTION:

Indus Motor Company Limited (IMC) is a joint venture amongst the House of Habib, Toyota Motor Corporation (TMC) and Toyota Tsusho Corporation (TTC), formed in 1989 as a public limited company, for the purpose of assembling, manufacturing and marketing Toyota vehicles in Pakistan.  IMC started commercial production in May 1993 and is the sole distributor of Toyota vehicles in Pakistan.  Furthermore, IMC has also entered into an agreement for the production and marketing of Daihatsu vehicles with effect from March 2000. Annual sales at IMC grew from 6,802 units in 1995 to 11,249 units in 1999, an increase of 65% during these 5 years.  During the same period net turnover grew from 3.87 billion Rupees to 6.96 billion (an increase of nearly 80%) while the after tax profit grew by a very impressive 385%.  All this was achieved despite the uncertainty prevalent in the domestic economic environment, strengthening of Yen against the Rupee and a stiff challenge from competition. While IMC has so far excelled in these areas, advent of new players in the auto industry now calls for radical measures to progressively compete against them.  With price conscious customers to satisfy and a strategy of gradual price increase to retain market share, the two-fold pressure exerted by a strong Yen and a depreciated Rupee has to be faced by lowering costs and maximizing capacity utilization.

To face these challenges it was imperative to look at the business processes at IMC to identify areas where duplication of activities is taking place so that the same may be removed and the overall efficiency increased.  IMC assigned the task of carrying out a Business Process Study to Millennium Systems  (Pvt.) Limited (MSCL) with an aim of identifying duplication of activities within IMC Business Processes. The Project Scope was expanded by MSCL to also identify Missing Functionality, Missing Integration, Missing Control and Redundancy within the processes. 

For the purpose of achieving these objectives MSCL provided the following services to IMC:

• Analysis of business processes,

• Documentation of processes related to IT services, and

• Analysis of processes related to IT services. MSCL conducted a detailed study of the processes in the following divisions:

• Marketing,

• Technical,

• Administration, Logistics & Commercial,

• Human Resources & Training,

• Finance, and

• Information Technology.

EFFORT INVOLVED:     16 Man-months 

Customer Reference:  Mr. Nadeem Ikram, General Manager IT, IMC, Karachi.