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
- 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.
- 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.
- Posting
This option allows any operator to put up some information for others or make an announcement on the bulletin board.
- 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
- 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.
- 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
by
soldasters (student)
