Table of contents list of acronyms
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- 2. QUALITY
| EXECUTIVE SUMMARY 1. COMPOSITION AND SIZE The automobile sector in Pakistan has grown from its birth since the mid-50s has now become a multi-billion rupee industry, with over 2,000 OEMs and vendor units (formal and informal, manufacturing/assembling a range of products from the simplest of parts to the precision engineered steering knuckles. The industry employs over 300,000 to 500,000 persons depending on source. Studies undertaken in the recent past have found that the sector is still moderate in size and has not yet acted fully as a catalyst for promoting broad based manufacturing sector growth. The underlying causes for this state of affairs straddle the spectrum of the enabling framework (institutional, managerial, human resources, financial and government policy) needed to achieve greater efficiency, competition, competitiveness and productivity. The industry uses somewhat obsolete or outdated technology, is mired in reverse-engineering and the level of locally produced inputs ranges from a low of 5 percent in the case of some makes of cars to 100 percent in the production of tractors, motorcycles and three-wheelers. Proliferation in the number of vendors maybe attributed to the deletion programme and the increase in demand by the manufacturers/assemblers and an expansion in the basket of products produced. Foreign competition is discouraged by policy and allows for small, inefficient yet profitable domestic automobile producers. Some OEMs behave monopolistically in the domestic market and prices are higher than warranted. 2. QUALITY Quality is low, but efforts at improvement are visible. A small, but significant number, of vendors are ISO certified. Standards need to be developed by the PSQCA, skills need improvement and collaboration with international opportunities for skill/quality development need to be tapped into. While quality standards have been developed fora large number of engineering products, there are no known standards for the automotive sector. These need to be developed to ensure an acceptable level of quality, at the least comparable to Euro 2 in the medium-term. A mechanism available to ensure process control is through the International Standards Organisation’s certified Quality Assurance surveyors. Once again this is not seen yet in the automotive sector. Download 0.77 Mb. Share with your friends:
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