PRODUCTION AND OPERATIONS MANAGEMENT

INDUS MOTOR COMPANY

PROGRESS REPORT
Introduction
The Indus Motor Company Limited (IMC) is a joint venture between the House of
Habib, Toyota Motor Corporation, Japan (TMC), and Toyota Tsusho Corporation, Japan (TTC)
for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since
July 1, 1990. IMC manufactures, assembles, distributes and imports Toyota and
Daihatsu vehicles, spare parts and accessories in Pakistan. Heavy investment was made to build
its production facilities based on state of the art technologies. To ensure the highest level of
productivity world-renowned Toyota Production Systems are implemented.

Productions and Operations Management

For 25 years, Indus Motor Company has been serving Pakistans consumer and business market.
As a leading manufacturer of Toyota vehicles, Indus has gone from producing 20 to 240 vehicles
a day in Pakistan. With more than 60 suppliers, and an operating dealership network with 45
locations across the country. Recently the supply chain risk and unplanned downtime has been
reduced and the manufacturing capacity has been maximized with lower costs. Greater sales
order accuracy, fewer defects, and real-time delivery tracking mean happier customers. Now,
Indus plans to move toward a predictive maintenance model and drive even greater
manufacturing efficiency.

The study of operations management examines the production of high quality goods. The
purpose is to have effective and efficient business operations. It seeks to guarantee the efficient
management of resources along with the distribution of goods and services. The success of IMC
in Pakistan is due to the unique reduction systems that focus on continuous improvement and just
in time management. IMC holds a unique organizational culture defined by The Toyota Way. It
allows employees to perform better by keeping them aware all the time: for example, by passing
on information regarding the accidents occurred in the past, the company has necessitated the
wearing of hard helmet inside the plant. IMC incorporates concepts such as supply chain
management and inventory management to create high quality automobiles and gain a
competitive edge in highly competitive automobile market.

It is based on the lean manufacturing philosophy that seeks to minimize wastages and focuses on
cost reduction. This report will essentially look at how IMC created its manufacturing system
and the part of operation management methods to increase efficiency. It will also scrutinize the
production processes to see how the company has managed to achieve high productivity. The
lean manufacturing techniques have allowed Toyota to gain low cost production and to
manufacture high quality cars at low costs.