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The principal article used from Student Accountant was from the May 2004 issue, titled: “How to approach performance appraisal questions” by Steve Scott.
Reports
The major sources of data that I used in my research project were the Annual Reports of Indus Motor Company Limited and Honda Atlas Cars (Pakistan) Limited. I obtained two of the latest annual reports of Indus Motors for financial years ended 2006 and 2007 from the Karachi Stock Exchange (KSE). However, for Honda Atlas, I accessed the annual reports for the financial year ended 2007 online. These reports not only provided me with complete financial information for three years but also non financial information required to carry out evaluation of the business performance over the three years period.
The …show more content…
It has laid the foundation for a lean manufacturing system which is evident in the entire organisational structure. The lean manufacturing is not only implemented in the shop floor but also in the board room, the sales offices, and quite clearly in the product development process.
The traditional big batch mass production model has been supplanted by a lean production model. It is customer focused, emphasis on continuous improvement in waste reduction, operating efficiency, cost efficiency and time efficiency. Toyota’s Product Development System has enabled it to consistently develop higher quality vehicles faster, for less cost, and at a greater profit than their competitors (Morgan, 2006).
[pic]
Human Resource Management
Indus Motor Company introduced various employee and organisational development programs which could satisfy its business growth requirements. Extensive development programs identified through TNA process were introduced. Each training program focused on the key skills which were needed to produce a high quality product. In 2007, IMC was awarded with “People as Key Resource” by Employers Federation of Pakistan. (Indus Motor Company Limited …show more content…
Bragg, 2003)
[pic]
The return increased from 52.91% (2005) to 65.85% (2006) – a rise of 24.5% but decreased to 51.52% (2007) – a fall of 21.77%. As a rule of thumb, any ratio greater than 50% is good. Therefore, taking ROCE of FY 2007 in isolation, 51.52% represents a very good return on capital. However, ROCE has shown a declining performance as compared to previous years. The reason is the inability of the company to control its overhead causing a lower growth in profit as compared to previous years. ROCE in 2006 out performed both years mainly due to the higher profit growth and lower asset turnover – the two components that make up the
Reports
The major sources of data that I used in my research project were the Annual Reports of Indus Motor Company Limited and Honda Atlas Cars (Pakistan) Limited. I obtained two of the latest annual reports of Indus Motors for financial years ended 2006 and 2007 from the Karachi Stock Exchange (KSE). However, for Honda Atlas, I accessed the annual reports for the financial year ended 2007 online. These reports not only provided me with complete financial information for three years but also non financial information required to carry out evaluation of the business performance over the three years period.
The …show more content…
It has laid the foundation for a lean manufacturing system which is evident in the entire organisational structure. The lean manufacturing is not only implemented in the shop floor but also in the board room, the sales offices, and quite clearly in the product development process.
The traditional big batch mass production model has been supplanted by a lean production model. It is customer focused, emphasis on continuous improvement in waste reduction, operating efficiency, cost efficiency and time efficiency. Toyota’s Product Development System has enabled it to consistently develop higher quality vehicles faster, for less cost, and at a greater profit than their competitors (Morgan, 2006).
[pic]
Human Resource Management
Indus Motor Company introduced various employee and organisational development programs which could satisfy its business growth requirements. Extensive development programs identified through TNA process were introduced. Each training program focused on the key skills which were needed to produce a high quality product. In 2007, IMC was awarded with “People as Key Resource” by Employers Federation of Pakistan. (Indus Motor Company Limited …show more content…
Bragg, 2003)
[pic]
The return increased from 52.91% (2005) to 65.85% (2006) – a rise of 24.5% but decreased to 51.52% (2007) – a fall of 21.77%. As a rule of thumb, any ratio greater than 50% is good. Therefore, taking ROCE of FY 2007 in isolation, 51.52% represents a very good return on capital. However, ROCE has shown a declining performance as compared to previous years. The reason is the inability of the company to control its overhead causing a lower growth in profit as compared to previous years. ROCE in 2006 out performed both years mainly due to the higher profit growth and lower asset turnover – the two components that make up the