Federal Urdu University Islamabad

DYL Motorcycles

DYL Motorcycles Ltd; is engaged in the manufacturing and assembling of YAMAHA brand Motorcycles in Pakistan. DYL brands are the undisputed leader in 100 cc category in Pakistan Motorcycle Industry.

Our Manufacturing facility is situated at Hub Chowki, whereas our state of art assembling plant is located in Uthal Industrial Area, Distt: Lasbella, Baluchistan.

A professional commitment ,stringent quality control, nationwide dealers network, excellent after sales, aggressive marketing have helped established the company’s image and reputation as a front runner brand in Pakistan Motorcycle Industry

Company Heritage

Dawood Yamaha Limited

In 1976, under the umbrella of the Dawood Group of Companies, Dawood Yamaha Limited (DYL) was formed in a joint venture with Yamaha Motor Company (YMC), Japan. Since its launch Dawood Yamaha Limited (DYL) has built extensive world-class facilities for manufacturing and marketing the Yamaha brand of motorcycle in Pakistan. It is because of our reputation as a manufacturer of quality motorcycles that we have been the undisputed leader in 100cc engines throughout Pakistan.

Launch of DYL Motorcycles

In 2008, Dawood Yamaha Limited (DYL) underwent an image transformation and changed its name to DYL Motorcycles. With this name change we also introduced a new product the YD-70 Dhoom. The Dhoom is the economical cousin of the Yamaha Royale that has been produced in Pakistan for the last thirty years, and most recently the Yamaha Junoon, which was designed and engineered by DYL in Pakistan. After the launch of Junoon, our engineering team set to work on the YD-70, was launched to target the largest section of the motorcycle market, which was

suffering as a result of high fuel prices in an economy suffering from high inflation.DYL Motorcycles Ltd, with its 70cc Dhoom is a quality brand built on solid after-sales care, who cater to the mid-to-high price customer who care about the quality of the product they are buying, and wants his motorbike to be an investment in his future.

MISSION STATEMENT

Our mission is to be a leading motorcycle manufacturer providing the highest customer satisfaction to it users in terms of:

Product quality Full service back up Easy availability of spare parts at reasonable price. To provide opportunities growth, enhancing our quality of life and to develop a team

spirit in the organization. To provide opportunities locally, regionally nad nationally whereever we operate.

Dhoom Milestone

Launched on the 15th of December 2008, the YD-70 Dhoom has truly achieved remarkable proportions.

It is the only brand of motorcycle in Pakistan to have sold in its first 12 months over 70,000 units. Such large sales figures are even more astonishing considering that the 70cc market is very competitive, with over 60 manufacturers all competing for market share. Making the fact that Dhoom has gained over 10% of the market share even more astounding.

Success like this is not by accident, it is a combination of tenacity, persistence and an intimate knowledge of the needs and wants of customers, which can only come after years of striving for excellence in customer satisfaction, by every division and department of an organisation.

The success of Dhoom is not an easy one to describe, as it due to a myriad of complex events and circumstances. The launch of Dhoom was on the 15th of December 2009; however the first step on deciding what new model to launch was a key issue. DYL’s management saw a gap in the market which needed to be filled, although the 70cc market was saturated by a large number of assemblers, it lacked a product which was of high quality, durability, and longevity at a price the majority of the consumers were willing to pay for. Noticing such a gap, Management instructed DYL’s Development and Engineering team to begin crafting the product in Nov ‘07. Getting the product ready for launch was an exhaustive process, ensuring quality and safety

above all else, while still maintaining a low a price as possible, is a hard remit for any division, but one that DYL’s Development and Engineering division passed with flying colours. That was the first step in the Dhoom’s success, the second came at the time of the launch.

Following the launch, DYL’s Marketing division released its new TV advertisement which was to prove a hit across Pakistan. The advert was an astounding and unconventional release for Pakistan. The Dhoom TV commercial was a photo-realistic accumulation of all motorcycle parts coming together in unison to create the perfect bike. An act of incredible boldness and courage to move the marketing spectrum away from its comfort zone and create something new.

The product and the marketing campaign were a an immediate success with the public, which meant our sales teams across the regions had to be prepared to deal with the influx of demand, alongside our service team who were instructed to monitor and report every single problem with our bike for quality control across Pakistan.

The hardest of challenges now faced was that of production, with demand growing at such an astonishing pace, the customers’ needs had to be met. So with the knowledge that no capacity increase was possible in such a short time period, the Production division was facing a mountainous task. However, by improving process flows and bottlenecking, production has done marvels. The production of Dhoom has increased from 3266 units in January to a record production of 8445 units in October. The average production for the first 6 months of 2009 was 5031 units, while the average production for the last 6 months of 2009 was 6995 units.

With such a rise in production came the Quality departments time to be tested, with such large production numbers they had to keep pace and increase their

Balochistan Engineering Works

Balochistan Engineering Works Limited (BEWL) was established in 1979 as a light engineering facility specialising in the manufacture of automotive body and engine parts. Spread over an area of 3.5 acres (14,000 sq metres) with a shop floor covering 3000 sq’m, the plant specialises in press-working, tool & die making, mass production welding and machining.

Alpha Engineering Works Limited (AEWL), was established in 1987 and went nto commercial production in July the same year. Spread over an area of 16,500 sq. M, with a shop covering 2735 sq. M, the plant facilities include precision machinery for the production of component parts, automotive engines, as well as body components. The machining facilities include, NC/CNC machining centres, flexible machining centres, special-purpose machines, multi-head drilling/tapping machines, and semi-auto lathes.

Die Casters Limited (DCL) was established in 1987 as an engineering company specialising in pressure die casting, shell moulding and hear treating of steels. The plant is spread over an area of 16,500sq. M, with the shop floor covering 7680 sq. M.

Gears Hobbing Limited (GHL) was established in 1989 and specialises in manufacture of quality gears and shafts for automotive transmission and other precision parts for automotive engines. The manufacturing facilities are spread over a shop floor area of 2206 sq. M. The plant facilities include NC/CNC machining lines of gears and axles, hobbing lines, gear shaping lines, grinding lines for both internal and external surfaces, and threads and serration rolling lines

DYL Motorcycle Ltd

Cost of Production Report:

Quantity schedule:

Units received from previous dept. 130

Units completed and transferred out 90

Units still in process(all material-1/2 of labor and FOH)30

Units lost in process 10 130

Cost charged to the department:Total cost Unit cost

Cost from prceeding department: 638482.757 458.256478

Cost added by department:

Material 1268,000 10244

Labor 80000 758.256474

FOH 82800 873.3333333

Total cost to be accounted for 2069282.757 2333.8462853

589.25456

2923.1008453

Cost accounted for as follows:

Transferred to the next department 90*2923.1008453=263079.076077

Work in process-ending inventory

Adjusted cost from preceding department: 30*(458.256478+589.25456)=31425.33114

Material =30*10244*100%= 307320

Labor=30*758.256474*1/2= 11373.84711

FOH.=30*873.3333333*1/2= 13100

Total cost accounted for 331793.84711 2069282.757

Additional computations:

Equivalent production units: Materials=90+(30*100%)=120

Labor=90+(30*1/2)=105

Factory overheads=90+(30*1/2)=105

Unit costs:

Material 1229280/120=10244

Labor 79616/105=758.256474

FOH 91700/105=873.3333333

Loss adjustment:

unit lost*unit cost of previous dept/available number of units

10*458.256478/120=38.1880398

DYL Motorcycle Ltd

Cost of Good Sold Statement

Direct material = 1250000/-

Purchases =120000/-

Local purchases =526000/-

Transportation in =227000/-

Net purchases =1258000/-

Material available for use =3381000/

Closing balance of raw material =804000/-

Direct Material Consumed =2577000/-

Direct Labor =78500/-

Factory Over Head =85900/-

Indirect Material (Paint) =12500/-

Indirect Labor =65884.50/-

Light and Power =48597/-

Total Material Cost =2868381.50/-

Opening work in process =559900/-

Cost of goods sold avaible =3428281.5

Work in process ending =266844/-

Material used =3161437/-

Closing balance of finished goods = 557400/-

COGs = 2604037/-

Per unit Cost:

Total number of unit produced = 200

COGs =2604037

Per Unit Cost =2604037/200 =13020.185