The Company

Hinopak Motors Limited was formed in 1985 by a diverse group of sponsors.

These included Hino Motors Limited, Toyota Tsusho Corporation of Japan, Al-
Futtaim Group of UAE and PACO.
Hinopak family in Pakistan & under the guidance of our Japanese sponsors has
achieved standards of quality and excellence that rival the best in the region. In
recognition of these efforts, the company has received a number of excellence
awards for its management practices and quality standards. In 1998, Hino Motors
Ltd., and Toyota Tsusho Corporation obtained majority shareholding in the
company after disinvestments by the other two founding sponsors. This decision to
invest in Hinopak at a time when the country's economy was passing through a
depression and the sale of commercial vehicles was at an all time low reflects the
confidence our Principals have in our company and their commitment to the
Pakistani market.
It is the enduring success of Hinopak that has made the Hino name and symbol of
quality & reliability and Hino vehicles a prize possession for its owners.
By continuing to move forward and staying alert to ever-changing market & social
needs, Hinopak will continue to be a successful and well-respected corporate
citizen of Pakistan.

Hino Motors Ltd., Japan

Founded in 1910, Hino Motors Ltd. is Japan's oldest motor vehicle manufacturer.
Since introducing Japan's first automobile in 1908, Hino has been developing and
manufacturing superior vehicles that serve business and society. Over the years the
range of Hino’s trucks and buses has made their mark in over 140 countries
worldwide. Today Hino Motors is the leading manufacturer of medium and heavy-
duty commercial vehicles in Japan and the 2nd largest in the world.
In this age of high technology, globalization and advanced data communication,
individual values are diversifying. Hino is dedicated to putting the customers first
and maintaining high standards of quality.

Toyota Tsusho Corporation (TTC)

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Established in 1948, Toyota Tsusho Corporation (TTC) is a trading company
within the Toyota Group. TTC has an extensive network of representative offices
all over the world and offers a vast variety of goods and services to its customers.
As a leading player in the automotive business TTC provides additional support to
Hinopak with its expert advice and knowledge of world markets.
Backed by the strong network of Hino Motors, Ltd. Japan and the versatility of
Toyota Tsusho Corporation (TTC) that provides us the competitive edge, we at
Hinopak believe in giving our customer the very best and we pledge to continue
for "Total Customer Satisfaction".

Corporate Features
Building on seventeen years of success, the Hinopak continues to play a leading
role in marketing commercial vehicles with superior and advanced Japanese
technology.
Market Leader in Pakistan, holding over 65% of the truck and
bus market share.

First Pakistani automobile company and Hino affiliate to receive

ISO-9001 certificate.

Voluntary initiative for ISO 14001 certification.

First company to export buses from Pakistan.

Recipient of Quality Excellence Awards.

First automotive company to introduce "3S" concept in heavy-

duty commercial vehicles market.

First company to supply busses under "Urban Transport

Scheme" in Pakistan.
Recipient of Employers' Federation of Pakistan's Golden Jubilee
Award for Human Resource and Industrial Relations.

Recipient of Corporate Excellence Award from Management

Association of Pakistan.

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 Recipient of Employers' Federation of Pakistan's Golden Jubilee
Award for "Excellence in Productivity."

Policy Statement
HINOPAK QUALITY POLICY STATEMENT

The policy on Hinopak motors is to provide customers with product and services
of grade that meet or exceed requirements in areas of quality, cost and on-the-
delivery. Hino’s operations are based on the quality system that meets various
national and international standards for quality, reliability and safety.

Selection of suppliers, their evaluation and surveillance to be consistently carried

out on the basis of scientific techniques and procedures.

Continuous education programs to be conducted for customers on proper usage

and maintenance of Hino products by sales and services network.

Product behavior at user’s premises to be regularly monitored and systematically

reviewed.

With the education and training given to all personal under the Total Quality
Control (TQC) activities employees are made conscious of quality and are totally
committed to customer’s satisfaction.

HINOPAK ENVIRONMENTAL POLICY

Hinopak Motors Limited is committed to identify and implement means and

measure that would result in minimum environmental impacts from its product
and every aspect of its business activities ranging from product development to
production and servicing.

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Motto At Hinopak
“Strive to produce environment friendly products for our customers’ satisfaction
and to provide support and cooperation to environmental preservation activities for
our employees and community, to the best of our ability.”

For the sake of this Motto Hinopak Motors Limited have adopted the following
objectives:

Promote pollution prevention and reduce environmental impact by proper

handling and disposal of wastewater. Solid waste hazardous substances, gaseous
omissions and reduction in noise impact.

Conserve energy and other resources.

Comply with all the applicable environmental legislation of regulation and

cooperate with the concerned authorities.

Improve our environmental performance continuously by regularly reviewing

objectives. Conducting audits and management reviews under our Environmental
Management System.

Educate train and motivate employee and interacted parties to conduct activities in
an environmentally responsible manner and as per the company’s environmental
which is also available foe the public.

Hinopak Offers Its Customers

It has always been the endeavor of Hinopak Motors to provide the best Product
Support Backup to its values Hino customers throughout the country.

The company has a comprehensive network of its own offices, Service Dealers
and Spare Parts Dealers strategically located throughout the country. The company
also maintains a fleet of mobile workshops, which provide prompt and efficient
back-up service to Hino customers even at the remotest of locations.

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Company's service personnel, service dealers and customers receive regular
training at Hinopak to keep then abreast of the rapid technological developments,
thereby enabling them to provide Quality after Sales Service to Hino customers,
thus achieving the highest level of Customer Satisfaction.

The company also maintains an inventory of Genuine Spare Parts at its own
warehouses, besides the Spare Parts Dealers who directly import Genuine Spare

Parts to abundantly feed the market needs. This ensures that Genuine Spare Parts
are readily available throughout the country.

The company is the first in the commercial vehicles sector to start the
establishment of 3S Dealership network, which offers Sales, Service and Spare
Parts facilities all under one roof.

Export Market
On successfully establishing itself as the market leader at home. Hinopak
proceeded to explore its product potential for the export market. This quest met
with initial success when in 1990 Hinopak exported its first bulk order of buses to
U.A.E.

Customer confidence and satisfaction were reflected by various follow-up orders

for more buses; this entry into the export market was an important milestone for
Hinopak, making it the first exporter of vehicles from Pakistan, thereby opening
an important chapter in Pakistan’s automotive industry.

This encouraged the team to achieve even greater heights in production quality
and performance. By successfully meeting set international standards in export
quality and with the achieving of ISO-9001 certification, Hinopak can confidently

look ahead to tapping new markets for its range of vehicles, to usher in an exciting
new era in the automotive industry and fulfill its commitment towards the
economic growth of Pakistan.

Principles Of Organization

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Principles form the basis of every organization. It is on this foundation upon which
the whole organizational structure is standing. The success of the organization
depends upon how effectively the principles are practiced there.
Hino, thus touching the pinnacle of success, with transparency in operations,
active employee involvement and empowerment, respect for fundamental
principles and rights at work, mutual trust and dependability lie at the core of the
company’s relationship with all its employee, vendors, dealers and customer.
To further enhance there capabilities to be a role model in the automotive industry.
Hinopak motors believe that people are keys to business success. And the
company and its staff are committed to taking initiative to serve its customers,
shareholders, and community. Company wants its presence in society to be
constructive and positive.

“Let’s take a glance at our performance this year”

BEST PRACTICES OF CORPORATE GOVERNANCE

The company has complied with all the material requirements of the code of
corporate governance issued by the Securities and Exchange Commission of
Pakistan.

Structure & Internal Ecology

At Hinopak Japanese introduced the “Japanese Work Environment” which is
observed to be a blend of organic and mechanistic; emphasis is given to traditional
approaches like Unity of Command clearly defined Chain of Command and
uniform implementation of rules and regulation.
In this structure, human factor is not neglected. That is why the attitude of
employees is very positive, we have observed sense of understanding between the
employees and managers and they are found cooperative to each other.
They have adopted an open work environment the management and staff they all
work under one roof in an open work environment. This structure has benefited
them in many aspects like their efficiency has increased, they don’t have to waste
their time contacting managers and correspondents, unity which is an important
aspect for better working of employees, has increased. The managers of the

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different departments can also easily contact to each other. This increased the
efficiency of the organization.

Management at Hinopak
Hinopak is one of the leading firms in the automobile industry of Pakistan. It
considers planning as the primary function of management, which formulates
futures course of action to achieve specified results.

At Hinopak, planning begins at the top of the organizational pyramid and filters
down. The top management’s job is to state the organizations mission, its long
term goals with the resources expected to be available.
The middle management determines the objective and plans, the course of action
at the departmental level to achieve the desired results, within allocated resources.

The lower management is involved in operational planning and determines how

specific tasks can best be accomplished on time, and is mostly involved in
implementation of the policies formulated by the top officials.
The decision-making authority at Hinopak has given to its managers and
supervisor’s extent as it allows them to make working plans related to the assigned
job. These plans are then discussed with the departmental head and after taking
their consent further proceedings are made.

Span Of Control
In Hinopak the number of subordinates reporting directly to a supervisor is not
fixed. Depending upon the nature of the job, the individual and the department,
performs. A supervisor can either have a narrow span of control. However in
production department span of control is wide.

Specialization

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The concept of specialization is very rare in Hinopak. For hiring purpose, they do
demand specialization. Hence to keep the staff in tune with the times and as a part
of the general policy of the pursuits of excellence, Hinopak organizes and
conducts regular training programs catering to all levels of employees.
Hinopak provides adult literacy classes. A skill development courses for workers,
“In-house training” of company, personnel along with on the job training “Job
rotation”. “Job enrichment” and “training”. Under the guidance of Japanese expert.
More over selected managerial staff and workers are sent to Japan as apart of
overall management development programs.

Executive level personnel also participate in the courses at professional institutions

like “Pakistan Institute of Management (PIM) that broaden their out look and
introduce innovative methods of thinking and approach. The purpose behind this
training is that employee should not suffer from boredom and should always be
motivated all time as repetition of task can lead. This motivates the employees
along with providing him with an incentive to learn more. Besides, being
beneficial and encouraging for employee, this practice benefits the organization as
well.

Informational Flow In Hinopak

Activities linkage across department at similar level is also very essential for
information to flow in organization. This communication provides the additional
means for processing the information in an organization. And the exchange of
information at similar level facilities in communication mechanism than this
provides also a supplement for relative methods of formalism.

The Hinopak commonly acquire to process more information when they face
changing technology, or environmental uncertainty. The Hinopak has also realized
the importance of informational system and they have developed their own
website. And to make the communication easier among the co-workers company
has developed PC sharing system. The company has also provided the internet and
computers to its employees that they can easily contact with each other without
wasting much time.

Lateral relations is also one of the efforts being used for facilitating the
communication through communicating and problem solving with peers within the
department and units rather then referring the most issues for facilitating the

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communication. Hinopak has the concept of the teamwork, workers in different
teams are assigned different task to perform.

Degree of Formalism in Hinopak

For the successful achievement of goals this is necessary for all Organization that
they must have links of activities at the top of organization with those at the
middle and lower levels. Without this coordination, various parts of organization
may have problems working effectively together. Here are many ways through
which coordination can be facilitated among the workers. Hinopak has both formal
and non-formal ways.

Company has written policies, rules, procedures, job description and other
documents, which specified action that has to be taken and action which are
prohibited under some particular consequences.
If the department has problems or some ideas then it is discussed with the
employees and they are given an open opportunity to for expressing their views.
Direct contact allows the management, executive and all staff members designated
at all levels of management to coordinate directly

Target Setting
In target setting organization follow traditional approach and management does
not involve employees in the process of target setting. Top management set targets
and workout strategy and action plans to achieve those targets. However
employees can give their suggestions through a proper channel but in most of the
cases management uses employees as a tool of implementation.

Departmentation
The departmentation is done on the basis of function performed in organization.
Hinopak can be divided into six major departments:-

 PERSONNEL & ADMINISTRATION.

 FINANCE & MIS.

 SALES &MARKETING FUCNTIONS.

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 PRODUCTION.

 ASSEMBLY OPERATION PLANT (AOP)

 BODY OPERATION PLANT (BOP)

 QUALITY ASSURANCRE.

 PROGRESSIVE MANUFACTURING .

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 ORGANOGRAM
PERSONNEL & ADMINISTRATION DEPARTMENT

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 Faseeh-ul-Kareem Siddiqui
Director HR & Administration
(QMS Representative)

M. Akram M. Zaman Khan

DGM Manager
HR & Administration Industrial Relations

S. M. Bukhari
Executive
Administration
Clarita Ahmed
Human Resource
Development Manager M. Khaliluddin
Executive HR

Amir Mirza
Executive Admin &
Protocol
M. Ali
Executive HR

M. Ziaullah
Fire & Safety Officer
M. Khalid
Personnel Executive
Medical Aid (BOP)

PERSONNEL AND ADMINISTRATION DEPARTMENT

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The head of personnel and administration department believes that employees are
assets of the organization and key to business success. Under his leadership
department is striving to improve the quality of HR so that the organization can
face the market challenges. HR department with the help of other functional
departments heads monitor working and identify problems faced by employees in
discharging their duties and try to remove those hurdles.

MANAGERIAL FUNCTIONS AT PERSONNEL AND ADMINISTRATION

DEPARTMENT

The personnel and administration department is compromised of three main units,

which are as follows;
 Personnel Department.
 Administration Department.
 Human Resources Development Department.

Personnel Department
The personnel department is performing lots of tasks that are mentioned below;
 Maintaining Staff Data.
 Recruitment.
 Performance Appraisal.
 Training & Development.
 Budgeting.
 De-recruitment.

MAINTAIN STAFF DATA

At Hinopak limited there is a personnel file of each employee. Personnel
department maintains all these files. These files contain information like
appointment letter, performance appraisal, leave records, different types of
memorandum given to employees.
Personnel department also maintains record of application received for job. All
such applications is kept in record for at least two years, if the job is created in the
organization the department scrutinize the application and call appropriate person
for the selection process. This only does not save time but also save the cost on the
whole recruitment process.

RECRUITMENT
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At Hinopak recruitment is done in both ways that is internally and externally but
in either situation the process is simple, convenient and effective.

Internal Recruitment
If a job is created or vacated the personnel department first tries to find a suitable
person within the organization, if the person is there he is interviewed and if
suitable is transferred or promoted to the new post. In most of the cases this
process is considered as formality.

External Recruitment
If there is no one found fit for the particular post then the Personnel department
tries to fill the position externally and for this purpose department first scrutinize

previously received application and call applicants for the selection process
otherwise the department releases an advertisement in the national press.

Recently department experimented a new method of attracting capable applicant

and instead of going to media it sends a letter to various institute that are providing
training and ask them to mention jobs on their notice board.

PERFORMANCE APPRAISAL
Objective standards are adopted for higher level management where as subjective
standards is adopted for the rest of organization levels. This gives an effective tool
for appraising the performance of higher level management while performance of
lower level is evaluated individually, for this purpose performance appraisal report
is prepared for every employee in the following area;
 Quality of work.
 Knowledge & Experience.
 Punctuality.
 Ability to manage things.

On the basis of performance appraisal reports decisions are made for rewards,
training and De-recruitment etc. a similar performance appraisal of new employee
is done for confirmation in service.

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DEVELOPMENT & EVALUATION

TRAINING & DEVELOPMENT

At Hinopak employees are broadly categories into two groups one which are
performing technical jobs like engineers etc and those who are performing non-
technical jobs. Performance appraisal system identifies areas where employees of
both groups required training.

JOB ROTATION
Job rotation is not a part of training programme however at times it is done to
introduce new employees to various kinds of work perform within the department
and organization.

JOB ANALYSIS & DESCRIPTION

With the help of different functional department, personnel department performs
functions of job analysis and prepares written description of duties for various
jobs.

DE-RECRUTMENT
At Hinopak, management has result oriented approach for dealing with their
employees. Hinopak believes that performance of each individual contribute in
overall success of organization. Performance appraisal system identifies
employees whose performance is not up to the mark. Personnel department
analyzes each case and ascertains the reason of employee’s unsatisfactory

performance. If it is due to lack of skills department arrange training courses for

them.
The employee’s at Hinopak are not treated as a waste paper and due time is given
for the improvement.

TECHNICAL TRAINING
Hinopak has setup a technical training program in which company workers are
imparted comprehensive training in relevant trade and skills. This program has
been accredited and register with Sindh Board of Technical Education (SBTE) and
the workers who complete and pass this course receive certificates issued by the
board. Currently a skill development program is being conducted to provide basic
computer knowledge to the employees.

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Administration Department

Administration unit at Hinopak bridges the gap between employees and the
management. It defines the position of employees, their duties and their
relationship with one and other. It perform functions like formulating work hours,
break time for lunch and prayers, arrangement of transportation, maintaining good
working environment for motivation of employees, plans and arranges recreational
activities etc.

COMPENSATION
Workers performing their jobs in company achieve not only wages for their tasks
but they also obtain some other benefits which are as follows;

Along the gross salary permanent workers are provided with other benefits too.
Workers are provided with transport facilities.

Permanent workers are provided with gratuity funds etc, and special bonuses are
given to them.
Workers are also provided with “workman compensation” incase of death.
Permanent or total disability compensation is also provided to the workers. This
percentage is according to the designation.
Loans are provided to the employees of the company to facilitate them the
purchase of household and motorcycles and these loans are repayable over a
period of five to twelve years.
Retirement benefits are also provided to the workers but to due after the
completion of a prescribed period of services.

STAFF RETIREMENT BENEFITS

The company operates an approved funded gratuity scheme for all its employees.
Contributions are made to the scheme on the basis of actuarial valuation. Annual
contribution to the fund at the rate of 8.33% has been made on the basis of
actuarial recommendation.
Projected unit credit (PUC) actuarial cost method, using following significant
assumptions, is used for valuation of above-mentioned funded scheme:
 Expected rate of increase in salaries 6% per annum.
 Expected rate of income on investment 7% per annum.
 Discount rate used 7% per annum.

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The company also operates a recognized provident fund scheme for its employees.
Equal monthly contribution of 10% of basic salary is made by the company as
well as its employees.

Human Resource Development Department

An organization is only as good as the people who work in it. They are more
important than technology and machinery employed by the company. Hence to
keep its staff in tune with the times and as a part of general policy of the pursuit of
excellence, Hinopak organizes and conducts regular training programs catering to
all levels of employees.
Executive level personnel also participate in course at professional institutions to
broaden their outlook and introduce innovative methods of thinking and approach.
Hinopak has setup a technical training program in which company workers are
imparted comprehensive training in relevant trade and skills. This program has
been accredited and registered with Sindh Board of Technical Education and the
workers who complete and pass this course receive certificates issued by the
Board.
Therefore by opening new avenues of technical and managerial development and
improving existing skills, Hinopak has guaranteed its continued growth in the 21st
century.

Hinopak also presents a model of labor-management relationship based on mutual

trust and respect and a strong commitment of employees union and management to
work together to improve enterprise productivity and performance.

PRODUCTION DEPARTMENT

Since the environment affecting trucks and buses continuos to change, our product
design and development division constantly works to quickly respond to a variety
of issues. Hinopak makes the most of development and design by making constant
efforts to gain information from a wide range of customers and the market.
Hinopak can create new and original designs because its designers are customer
oriented and are also alert to developing trends.

By implementing simultaneous engineering methods, Hinopak is able to supply

attractive products in a timely manner. This is done through a “Down Stream

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Process” in which related divisions participate for the very initial stage of
development and by actively using advanced technologies, such as CAD/CAE
systems.

Hinopak is baked by nearly 90 years of Hino’s experience and research dedicated

to building a wide range of superior quality vehicles. The objective is to achieve
optimum efficiency in on time production and delivery. As a result of the
induction of latest technology, Hinopak’s plant is equipped with the most advance
facilities for vehicles assembly and the fabrication of bus body and others
specialized super structure. Apart from being a prime force in the field of medium
and heavy vehicles, Hinopak is pioneer in engine and axle assembly

ASSEMBLY OPERATION PLANT (AOP)

Hinopak's vehicle assembly plant has an efficient and integrated design layout,
which comprises CHASSIS assembly lines, engine and axle assembly plants, paint
booths and ovens along with other component manufacturing facilities. This plant
is entirely geared to ensure that quality is built into the product at every stage.
Special emphasis has been given to the working environment to achieve the
ultimate in quality and productivity.

BODY OPERATION PLANT (BOP)

Hinopak's bus body fabrication facilities are also housed in a modern plant, with
paint booths and baking ovens. There is a press shop and a fiberglass reinforced
plastic unit for the manufacture of various types of components such as front and
rare domes, seats, grills, dashboards and interior trim items. The plant is feared for
the production of various bus bodies required for city and intercity travel.

The Bus Body Plant has a design section where Japanese and Pakistani engineers
work together to perfect the finest details in the modernization and improvement
of existing facilities for the design of new body structure. Trained draughtsman,
proficient in the use of both manual and computer aided design (CAD) methods
are also important members of the Hinopak design team.
The team is continuously meeting specific customer needs in bus bodies and
specialized vehicles and has pioneered a new breed of buses and specialized
vehicles that incorporate innovative styling, safety features, passenger comfort and
superior finish.

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FINANCE & M.I.S DEPARTMENT

FINANCE DIVISION

In Hinopak finance department is performing all the function, which is required to

run an organization business since it is hard to achieve the desired objective
without the pro0per availability of financial resources. Money is involved in every
step the scope of finance department is considered very wide. The head of the
finance department is General Manager Muhammad Saleem Fudda, who looks
after the department affairs with the assistance of senior managers of finance. The
financial management at Hinopak undertakes policy making, planning, decision
making, coordination, control of the process of securing adequate resources, and
ensuring their safe custody.
The work of finance department is sub-divided into four units, headed by the
senior managers.

 ACCOUNTING REPORTING AND MIS SECTION

 BANKING AND TREASURY SECTION
 AUDIT, TAXATION AND PAYROLL SECTION
 COST CONTROL AND PURCHASING CONTROL

MANAGEMENT INFORMATION SYSTEM DIVISION

ELECTRONIC DATA PROCESSING

In Hinopak motors LTD MIS department is work as electronic data processing,
which is, working under finance department the head of the department is a senior
manager.
Functions performed by the MIS are
 Software development.

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  Hard ware trouble shouting
 Administration of network

SOFTWARE DEVLOPMENT
Department has developed data base soft ware according to need of organization
through these programmes department has established a centralized information
system which can be used by different departments

HARDWARE TROUBLE SHOUTING

This is a job of MIS department to resolve hard ware problems of all the units of
the organization if arise.

ADMINISTRATION OF NET WORK

In Hinopak Motors LTD, there are two Local Area Networks (LAN) working, one
at head office and other at plant. These local area networks are linked with each
other through PTCL Routers which establish (WAN) MIS department perform net
work administration and resolve problems if arises.

SALES & MARKETING DEPARTMENT

MARKETING DIVISION
Manager marketing looks after the affairs relating to marketing like advertising,
market research, distribution etc.

Advertising
Department does not have its own advertising unit and takes the job from
advertising agencies. The task of advertising is assigned to any agency, which
seems fit for that but it is tries to stick with one advertising agency.
For advertisement company use billboard, neon signs etc. Advertisements are also
published in national press on regular basis.

Market Research
The task of market research is performed by department it self although there is no
separate research unit department’s staff regularly visited in to market and collects
various type of information and prepares reports that are submitted to top
management. Since organization has horizontal communication these departments
share collected data and information with each other.

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Network Of Distributors
Hinopak motors has countrywide network of distributors and dealer’s .As the
office of transport companies are located mainly in Karachi, Lahore, Islamabad
Multan Faisalabad, and Peshawar. Company mainly focuses on these cities.

Competitors
Hinopak is the major shareholder in the heavy vehicle market; however there are
other assemblers who are in the business. Hinopak reckon Gandhara Nissan Diesel
LTD, Mazda, Toyota, Isuzu, etc as its competitors in the local market.

SALES DIVISION

Hinopak motors have three types of sales;

 Individual sales.
 Contract sales.
 Institutional sales.

Individual sales are done through dealers but contract and department does
institutional sale itself. The major institutional customers are Pakistan Army,
Pakistan Navy, Pakistan Airforce, Punjab urban Transport Corporation and City
district government Karachi, SUPARCO, etc.

Sales Process
The first step of the sales is booking of a particular vehicle. The customer paid
10% of the total price and the finance department issues the invoice to them.
When vehicle is ready for delivery customer paid remaining amount and the
finance department issued final invoice to customer and the customer take the
delivery and the process is completed.

Product Support And After Sales Services

Hinopak has been striving to achieve total customer satisfaction by not only
providing them with the widest range of bus and Turks according to their needs
but also by pioneering such concepts as mobile work shop, country wide spare

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Parts warehouses, 3-s dealerships, free training for mechanics/drivers and free
service camps.

The company’s commitment to after-sale service and environmental protection

was demonstrated through free service camps held in remote areas around the
country. The owners and drivers alike benefited from these camps. More than 500
vehicles were inspected free.

QUALITY ASSURANCE DEPARTMENT

The basic difference between a good company and a mediocre one is Quality
Control. A good company makes sure that everything it manufactures and markets
is of a uniformly high standard. Hinopak is such a company

Hinopak Quality Policy is not confined to product quality only but applies to all
aspects of the organization. It aims at providing products and services that meet or
exceed requirements in the area of quality, cost and on-time delivery. This is
achieved through proper selection of suppliers, customer education, training at all
levels and monitoring of product behavior.

Hinopak has a full-fledge Quality Assurance Division (QAD). Measures to

prevent quality problems through process control are given emphasis and Hinopak
QAD guarantees quality is built into every component, part and process starting
from the product development stage including our vendors' premises and right up
to delivery to the customer. Hinopak has also developed an effective feedback
system from both the assembly line and the field force, which is instrumental in
eradicating shortcomings and improving the product quality on a continuing basis.

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Recurrence proofing is regularly conducted to ensure that the best quality product
is provided to the customer at all times.

Total Quality Control has been in force in Hinopak since 1992 when a network of
27 QC circles was established to resolve problems from the worker level upward.
By now, after years of practical experience, our Quality Control System is
performing commendably, adding quality at every stage of production.

PROGRESSIVE MANUFACTURING DEPARTMENT

It is the policies of the Government of Pakistan that automobile companies should

gradually reduce their dependence on foreign made vehicle component and obtain
more and more such parts locally.

In order to speed up this process indigenization program for trucks and buses,
Hinopak has established an in-house Progressive Manufacturing Department
(PMD), which is engaged in developing local vendors for the manufacturing of
vehicles components.

Hinopak has gone a step further and is cooperating with and supporting many
independent parties engaged in the manufacturing of local components. The highly
trained and experienced engineers of Hinopak maintain close supervision over
these vendors, guide them and ensure that the quality of components supplied is at
par with those manufactured in Japan.

The transfer of technology by Hinopak and guidance of highly qualified Japanese

automobile experts has resulted in stringent quality control at the vendors’ level.
By supporting these local vendors, Hinopak has created jobs for a large number of
people and made contribution to the strengthening of the economy by inducting
automotive technology and craftsmanship among ever increasing numbers along
with saving valuable foreign exchange of the country.

PRODUCT LINE
Hinopak product line can be divided into three distinct segments;
Trucks
Buses
Specialized vehicles

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HINO TRUCK AND BUS CHASSIS

Hino Motors limited themselves remarks;

“The largest seller of trucks and buses in Pakistan”

This could easily be judged by that Hino trucks and buses are the most popular
mode of public transport in Pakistan. With over 33,000 Hino trucks and buses on
Pakistani roads, Hino has become the best selling modern commercial vehicle in
Pakistan. Hino trucks are designed to carry loads of varying sizes and weights
across different terrain and for long distances. They must, therefore, be sturdy,
spacious, user friendly and gives trouble-free services.

Hino trucks are designed to function efficiently in the most grueling and extremes
of climate and terrain. Hino trucks are equipped with efficient high-powered diesel
engines and aerodynamically designed airflow cabs for fuel efficiency.

Some characteristic features about Hinopak products are;

 Powerful yet economical

 Safe and comfortable
 Durable and robust
 Affordable maintenance
 Latest technology
 High resale value

The bus of Hinopak includes;

 Road liner grand cruiser A/C luxury buses
 City liner intercity buses
 Rapid liner (DLX/STD) coaches
 Metro liner luxury coaches
 Apron buses
 School buses
 Mobile libraries
 Beverage carriers
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  Cargo carriers
 Freight vans
 Mobile dispensaries
 Mobile workshops
 Mobile ground power units
 Dump trucks
 Garbage collection trucks

Training Needs Analysis

My first assignment/project, which was assigned to me & also my colleague, was
“Training Needs Analysis (TNA)”.

Training and Development Need Assessment play a very significant role in pre-
training. Training needs vary based upon how much your business is structured,
and how responsibilities are shared and distributed. First you should assess the
nature of your employees' work, his job description, and the competencies that
your business requires to run efficiently.

Identifying Training Needs

The forms named “Employee Training, Development & Succession Plan” was
given, which is part of the appraisal forms. He fills this form by itself.

It includes the last Training Effectiveness Evaluation, Training Need and Gap
Analysis, Overall Training/Development Plan & Succession Plan. I was assigned
to flow this form to the concern manager of every department of Hinopak Motors
Limited. After the forms were filled by the employees of the Hinopak, I filled all
of them and named it “Training Need Analysis 2007”.
Human Resource Manager is conducting the needs analysis must get a clear idea
of the problem, look at all possible remedies and report on their findings to
management before deciding on the best solution.

From that my real work starts. I was then feeding the required data back into the
Computer. The data was mainly the Training Need Gap. It was the difference
between the Ability Level and the Job Need Level of the Skills/Knowledge
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required for the job. The numbers are in abstract form, the department manager
assigned by his own intellect, judgment & skills.

In Hinopak, the training was given or transfer on the basis of topics and the
employees who has the high difference of “Variance”. Like the following:

Sample Training Needs Analysis (TNA) Sheet

Job
Abilit Nee
Sr EMPLOY Sta EM DEPARTME TOPI Var Nee
y d
. # EE NAME t P# NT C . d
Level Leve
l
1 Saad Khan E 436 PROD 1 8 7 VC
2 Faheem Ali E 647 PROD 3 8 5 C
Sales and
3 M. Idrees E 616 5 8 3 MC
Marketing
Rizwan Product
4 E 123 7 8 1 LC
Haq Support
Sales and
5 Ahmer Ali E 620
Marketing

I was given the following priority level as critical.

6 to above = Very Critical “VC”

5 = Critical “C”
2 – 4 = Medium criticality “MC”
and Low Criticality “LC”

After putting the data into the Computer, we arranged the data into several
separations. For example, we split the data into Department-wise, Topic-wise,
Nomination-wise etc. to please the Human Resource Development Manager,
Madam Clarita Ahmed.

After that we made Training Calendar in which the current year’s whole data is
submerged. The Human Resource Development manager locates general
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information from the Calendar and further information from other sources.
Through this Calendar, the HRD manager selects the potential trainees, who really
need the training guidelines.

In Hinopak, the need analysis of employees is very progressive; the need data of
employees is collected in a very sophisticated manner. The human resource
manager floats a form to various departments called “Training Need Analysis"
form, TNA form in which departments highlight their employee’s deficiencies.

Human Resource Manager is conducting the needs analysis must get a clear idea
of the problem, look at all possible remedies and report on their findings to
management before deciding on the best solution.

Hinopak is using “Performance Appraisal” method for identifying the training

needs. The TNA activity is done every year in which human resource manager
consult to the different managers of different department. Basically TNA is stand
in conjunction with the performance appraisal.

In Hinopak, there are two types of form to be filled.

Form filled by immediate boss about employee

Form filled by individual employee about owns self.

These two forms are filled by immediate boss and employee himself/herself
properly. Then these forms are sending to Human Resource department where
both forms are separated and analyze separately by the Human Resource
Department. After the thorough analysis HR manager see the deficiency in the
employees. He analyzes the rating which is given to the employees by the
immediate boss that is showing their current level of performance. These levels of
performance are manipulated on the basis of scientific methods and mathematical
calculations.

Recruitment Of Trainee Engineers

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After the Training Need Analysis work finished, I assigned another work of
arrangements of “Pre-employment Test and Interviews” of Trainee engineers from
different universities like NED and NUST etc.

At first, madam Clarita had given me a Test paper of 20 pages. The test was
divided into four parts. English, Mathematics, Engineering, and Drawing. Then I
was send with the test papers to NUST University, National University of Science
and Technology. There I met with Lieutenant Ashfaq Ali Naz. He was the concern
person, under whom supervision several students are to come and to give the Test
of Hinopak Motors Limited, conducted by me and my colleague.

It was a great experience at NUST University. I have also had a small chat with
Lieutenant. He was a Physics teacher at NUST. The students were basically
having the major of Mechanical Engineering. Finishing the work at NUST, the
then week, we were assigned to conducting the test of NED University students at
Head Quarter. The strength of NED students was greater than NUST students. The
NED students were having the majors of Industrial Manufacturing & Mechanical
engineering.

There were 30 to 40 students from NED University & 18 to 20 students of NUST

University. Madam Clarita, my mentor, had given me the “Answer Key” of the
test and from that Key I was listing there scores and assess there marks into
Computer. Those who cleared the test were moved/separated from the non-passed
ones.

Passed students were then called on phone for the “Interview Process”. Then after
leaving of Madam Clarita for Philippines, I was managing half of the work of
HRD manager. I can symbolize my work as:

First of all I asked Mr. Muhammad Akram, the Deputy General Manager HR &
Administration, what to do with the students he commented as “Employ”.

Then I asked Mr. Syed Zafar Ali, if he wanted to see the Trainee candidates jointly
with Mr. Faseeh-ul- Karim Siddiqui, the Director HR & Administration.

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I arranged 2 candidates of NUST University for Mr. Faseeh-ul-Karim Siddiqui for
interviewing pupose, recommended by Syed Zafar Ali. And before that I had
given Mr. Kareem the required documents related to the candidates.
Followed-up Mr. Nishat Zafar’s comments on the 6 NUST University candidates
he interviewed and then I included his comments the assessment sheets in the
concerned candidates’ documents and fed it on the summary of candidates.

Discussed over the issue of calling more candidates for interview. For this certain
parameters were made;

Consult Mr. Akram to hire more candidates for interview.

Interview was arranged on panel cum individual, the concerned managers were
already been informed.
The confirmation was made after discussing with the interviewing managers.
The documentation was properly ensured before all interviewing panel.

After interview, the assessment sheets/marks have been collected from the
interviewing panel.
Referred the candidates labeled “Employ” to Mr. Akram for further interview or
for Hiring.

Internship Nominations
These internships were for the month of January till on. I followed-up internship
(Mechanical/Electrical) candidates from NUST through Lt. Ashfaq Ali Naz. But
Mr. Naz was busy in his work and he told me that he will be spare after January
31st 2007. I forwarded the CVs to requisitioning managers, to coordinate their
interviews/acceptance.

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There were several departmental Interns required by different managers of
different departments. Only 1 Electrical Engineering background student required
for Mr. Nishat Zafar. I also requested same managers if they could also entertain
non-NED students Dawood College of Engineering and Technology (DCET); also
attached letter with the request.

Followed-up internship candidate, MBA (HR) from CBM through Mr. Anwer
Khan (e-mailed & verbally conveyed request) if Mr. Akram required. The
acceptance had conveyed to Mr. Khaliluddin (forward CV, indication of internship
duration, commencement date, etc.)

Training Monitoring
When I started internship at Hinopak, there were several training programs already
been conducted by external or internal training providers.

Hinopak usually chooses “Outsourcing” for training the individuals. Learning

Japanese Language, Basic Computer Course classes, English Language course etc.
All three of them were conducted under our monitoring. Madam Clarita had given
me Attendance Sheets of Computer class, Communication and Language classes.

I also ensured that the Head Office Training Room is available before each
Computer Training class i.e. before 9:00 am each day.

The Product Support Department (PSD) training room was available for English
Language. For this course I had to contact Miss Tazeen of CBM (Trainer), in case
coordination was required.

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I was also looking forward the Japanese Language training, and also consult with
Mr. Subayyal or Mr. Haroon for any tea/snacks for the English Language training.
Mr. Adil Shah, DGM S & M was the contact person for decision regarding
holding/changing of schedule for same training. The attendance sheet was duly
signed by the trainees and fully updated.

Training Nominations
These are the persons who are finally nominated to attend or take the training
session outside or inside the Hinopak Motors Limited premises. We have been
receiving several filled forms of trainees from different departments of Hinopak
and get duly signed by the Director HR and DGM HR, Mr. Faseeh-ul-Karim
Siddiqui and Mr. Akram respectively. This training is basically the Outside course.

Then the nominations were sending to training provider for complete assurance,
with confirmation advice candidates upon confirmation of training from the
trainer.
I also prepared cheque request for payment only after the attendance of employee.
The photocopied materials were sent with the trainee and the original were
retained and filed.

All the requests from the trainee to be trained is acknowledged with the Finance
Department, the acknowledgement must be filed and attached with the document.

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