Enterprise resource planning (ERP) is a category of business-management software—typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities, including: product planning, cost. manufacturing or service delivery.

1. A Report on ERP system in “Honda
Cars India Limited ”
Group Members:-
15DM006 ABHISHEK SHARMA
15DM014 AKANKSHA
15DM023 ANIKET PERVEZ
15DM031 ANKUR AGARWAL
15DM039 AVANI SRIVASTAVA
15DM047 CHANCHAL GUPTA

2. ERP SYSTEM IN HONDA CARS LTD
ACKNOWLEDGEMENT
“It is not possible to prepare a project report without the assistance &
encouragement of other people. This one is certainly no exception.”
On the very outset of this report, we would like to extend our sincere & heartfelt
gratitude towards all the personages who have helped us in this endeavour.
Without their active guidance, help, cooperation & encouragement, we would not
have made headway in the project.
We are extremely thankful to our faculty Prof. Eugene Reuben for his valuable
guidance and support on completion of this project.
We extend our gratitude to Birla Institute of Management Technology for
giving us this opportunity.
Atlast but not the least gratitude goes to all those people who directly or indirectly
helped us to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thank You

3. CONTENTS
Topics
● Company Overview
● Why ERP for HONDA?
● Benefits of ERP..
● Which Software?
● Benefits of HSCP..
● Pre-Implementation Stage..
● Implementation Stage..
● Post Implementation Stage..
● If you were to choose an ERP for that company which
one would you choose and why?

4. Company overview
Company Profile
HCIL's first manufacturing unit was set up at Greater Noida, U.P in 1997. The green field
project is spread across 150 acres and has an annual production capacity of 120,000 units.
HCIL's second plant in Tapukara is the first car manufacturing plant in the state of Rajasthan.
The state-of the art Power train and Press shop in Tapukara plant have been operational
since September 2008. This facility is spread over 450 acres and has an annual production
capacity of 120,000 units. HCIL started the production of cars from its Tapukara Plant from
February 2014. This plant is the culmination of the best manufacturing know-how and
practices gathered from Honda's global operations.
Sales Network
Honda Cars India Ltd.,(HCIL) has a strong sales and distribution network spread across the
country. The network includes 248 authorised dealership facilities in 164 cities. HCIL
dealerships are based on the "3S Facility" format, offering complete range of Sales, Service
and Spares services to its customers.
Environment and Safety
The Honda Group is globally recognized for its concern towards environment, safety and
conservation of the society in which it operates. HCIL follows the same in India for achieving
high standards in environmental safety in the various processes of car manufacturing
Honda Assure
'Honda Assure' is an Insurance initiative introduced by HCIL to enhance ownership
experience for Honda car customers. Under the Honda Assure program, all Honda car
customers get the benefit of a more transparent, hassle-free transaction and a quick
turnaround time on their insurance claims. The entire transaction is routed through an on-
line central server which enables HCIL to monitor the overall operations more effectively.
Some of the direct benefits to the customers include Cashless Insurance across India, instant
policy issuance, and improved turnaround time
Auto Terrace
Honda's Exchange and Pre-Owned car division Auto Terrace has been in existence ever since
the inception of HCIL in India. Present in all major Honda dealers across the country, Auto
Terrace presents itself as the one-stop solution for catering to the needs of customers
wanting to exchange their existing cars for a New Honda car .

5. Vision
Basic Principles
 Respect for the individual.
 The Three Joys (buying, selling and creating).
We at Honda believe that each person working in or coming in touch with our Company, directly or
through our products, should share a sense of joy through that experience. This feeling is expressed
in what we call "The Three Joys"
Our Goal is to provide joy through our Business:
The Joy of Buying: For those who buy our Products
The Joy of Selling: Engage in selling our products and services
The Joy of Creating: Involved in business of creating our Products
Company Principle (Mission Statement)
Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at
a reasonable price for worldwide customer satisfaction.
Management Policies
 Proceed always with ambition and youthfulness.
 Respect sound theory, develop fresh ideas, and make the most effective use of time.
 Enjoy work and encourage open communication.
 Strive constantly for a harmonious flow of work.
 Be ever mindful of the value of research and endeavor.
Dreams inspire us to create innovative products that enhance mobility and benefit society.
To meet the particular needs of customers in different regions around the world, we base
our sales networks, research and development centers and manufacturing facilities in each
region. Furthermore, as a socially responsible corporate citizen, we strive to address
important environmental and safety issues.

6. WHAT IS ERP ?
Enterprise resource planning (ERP) systems are commercial software systems that can be
defined as customizable, standard application software which integrates business solutions for
the core processes (e.g. product planning and control, warehouse management) and the main
administration function (e.g. accounting, human resource management) of an enterprise.
Why ERP?
For smooth functioning : ERP plays a very significant role in integrating the various
functional areas of a business organization . ERP systems are designed on the premise of a
common database for all the functional areas and thus have the ability to automatically
update data among related functions or activities .
For large size of production : In order to achieve a systematic and hassle free working
ERP was chosen and as a result of this development , Honda was in a position to handle 450
cars a day. From the generation of invoices to planning of production schedule and
verification of inventory status or non-availability of stock all could be easily handled .
Multiple Products : A company which manufactures and sells a number of products has
to keep a track on each and every sale and manufacturing . Implementation of ERP reduces
the cost of labour and provides great relief as far as tracking of products is concerned .
Eliminate costs and inefficiency : Using an ERP system to standardize business
processes can dramatically improve company’s operation. ERP enable company to manage
relationship with vendor results in lower cost for purchased items. Better resource management
results in more inventory turns and decrease the level of inefficiencies.
Enhance productivity, flexibility and customer responsiveness : By integrated
core business processes together in one single application, it helps
company maximize the efficiency of business process across the entire
organization. Plant manufacturing can produces product faster. Increase on time
delivery, Increase productivity, Increase ability to forecast demand to supplies,
Increase order capacity, and improve customer service (Customer Relationship
Management (CRM)).

7. Extend your business using the Internet:
By integrating all business functions together in one system, it increases ability of a company
to use internet as part of the business strategy. Web-enabled technology allows you to access
information, sell product, run business processes, and communicate with customers and
partners at any time and from anywhere in the world.
Which Software FOR HONDA ?
HSCP ( Honda Supplier Collaboration Portal ) Software is used by Honda Cars India Limited .
It is their own software model since the beginning of Honda . They adopted this software
model to increase the efficiency and timely delivery of products . As the first plant of Honda
Cars India Limited is located in Greater Noida . The HSCP used initially was limited in use and
applicability . It was earlier confined to production of 60 cars a day only and with the
passage of time and further development , improvisation in software it can now handle 450
cars a day .
BENEFITS OF HSCP:
(1) Intergrated system- Integration of Process, People and Location :
All the departments within a company can be linked via a single computer system
that will make record keeping , data analysis , financial predictions and cost-
benefit analyses much simpler.
(2) Reduction In procurement Cycle Time : The time gap between the
receipt of the order and the delivery of the product is called cycle time. If an
organization has an ERP system, at the click of a button, the system checks the
availability of items, sends information to all the concerned departments, takes
approval, and delivers the product within minutes. Thus, the ERP system helps
reduce cycle time.
(3) Employee productivity : The advantage in terms of individual
employees in light of the central computing power and the real-time data
management is very obvious. Whereas previously, an employee or a department
may have spent considerable time backing up their own data, submitting it in
different forms to different parts of the organization, and maintaining the
software to manage the data, all of this can now be done by simply entering the

8. new or updated data into one central system. ERP can also be used to automate a
lot of repetitive manual tasks associated with the data that employees may have
had to do manually in the past. Through such a series of small cuts in time usage
during the working day, a large overall amount of time can be saved for each
employee. This opens up schedules for work on other tasks, and hence boosts
productivity .
(4) Visibility of stock items and materials across the organisation : Due
to a centralised system there is clear visibility of all the materials and stock items
that are there in the company’s inventory.
(5) Reduction in engineering and construction cycle time.
(6) Effective collaboration environment.
(7) Effective Employee Self Service system for employees : Through ERP
an effective ESS service is provided to the employees where they can easily update
their information and also see information relevant to them like salary, etc.
Challenges faced by them before /during/after
the implementation.
Stage I : Pre-implementation Stage
Need Establishment
Earlier the company had high demand for its products but the supply was less,
as the production was not integrated and was very time consuming.
Also, the links between the suppliers and the company was not well
established. So, meeting the requirements was taking time
Feasibility analysis
Earlier, much inventory was stored to avoid shortage of materials when we needed it.
Implementation of ERP could help in reduction of inventory, because by using ERP we can
establish better link between the company and the suppliers and the orders could be

9. processed in a much efficient way, as there is a well-established system between the
suppliers and Honda, we can reduce our inventory and start shifting towards just in time.
Before introducing a new technology we must find out, whether the available staffs are
sound enough to carry that change effectively or not, if not then we need to sort out the
problem by deciding whether to train them or recruit new.
Package selection
Its very necessary to choose the right ERP package, because otherwise it will
lead to a failure. So, at the time of implementation you need to be very careful
about the choice of ERP you are making.
Thus, Honda made its own ERP system i.e, HSCP to get rid of the limitations it
had earlier.
Hiring of consultants
Hiring new consultants is very necessary, because when you are willing to introduce
something completely new, you must go through analysis stage, and this can’t be done
without the help of experts. They have their expertise in this and can analyse the situation in
a better and unbiased way.
As, Honda Japan was already having this system and were working on the same
system we wanted to implement, So, what could be better than consulting
them, this is why people from Honda Japan were called up to help and guide.
Stage II : Implementation Stage
Implementation plan
Different modules of ERP were included in the process , so as to get the
maximum out of it. The modules were:
Sales & distribution,
Material Management,
Production planning,
Financial accounting,
Costing and controlling

10. Huge cost was involved in the implementation, as the software was new for us,
and also the experts were sitting overseas, contacting them, communicating,
as well as requiring them at the time of any problem was seeking a heavy
amount of money.
BPR & Acquisition of IT infrastructure
Analysing the current BPR like no of cars to be manufactured, inventory etc
was done and the way for the new software was opened, the environment was
also tried to be made in sync with the new system. employees were trained in
this to increase the effective functioning of the system.
Customisation of ERP system
In an industry, not everyone likes or knows to code, So that the system was
made user friendly, to allow the intention behind the implementation of the
system to be met, and easy functioning of the system.
Conversion of Data
The data conversion for whole supplies and suppliers, warehousing and
logistics, financial Accounting Data etc.
Testing and Go Live
A regular test was done for notification of HSCP for checking is it proper
functioning. Also the work within and among different modules were timely
monitored.
After checking all these things the system was ready for coming into the
operation.
Stage III : Post-implementation Stage
Evaluation of HSCP system
The production was highly improved, as the functions were going on more
smoothly, the supplies and deliveries were made hassle free with the use of
this software as the timely and accurate date was available with them all,

11. monitoring and tracking of the system was much easier than before as most of
the things became automatic, we can just go and check into it.
Customer services were also improved, as we were now able to provide them
with timely deliveries and services because now communication within the
company as well as with their clients and suppliers became far better than
earlier.
Maintenance of HSCP
New Tools like PRT, ASN (Advance Shipment notice), CC (Consignment Created)
etc, were used for timely upgradation and customization of the system
according to the changing needs of the company.
The software was upgraded to the Software HSCP 2.0, to meet the changing
requirements and better functioning of the system.

12. If you were to choose an ERP for that company which
one would you choose and why?
Whenever we choose an ERP system we must first do a need analysis, Its not a one day
process that we can shift from one system to other, also it requires a lot of money and
effort. So, before choosing or switching to an ERP system we must understand, whether we
need it or not.
When Honda started its operation in 1946, there was not any ERP system present in the
market, So, Honda developed its own software for ERP i.e, HSCP (Honda Supplier
Collaboration Portal). Implementation of this software in Honda Cars India Ltd was also not
easy, along with this it was very time consuming, as they had to consult every time to their
Japanese counterpart.
As the company is functioning well with this software and they don’t feel any need for
change, we must stick to the current system.
Also, switching to a new software now, will be a costly stuff, and as the companies providing
these software now are big ones having a number of clients all around the world, so there
might be a problem of information leakage, and chances of hacking prevails more. For
example, whenever we launch a new product, the whole process involved behind it consists
of huge brainstorming, R&D, designing, etc, and requires a lot of time, labour and money,
So, if there is a leakage of information then it’s a huge loss to the company and some rivals
can get benefitted out of it.
So, for security purpose also, they have been using and should be using this software only.