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53129310 mtm

  1. 1. By: Ateeba Abid MBA (HRM)Internship Report submitted in partial fulfillment of The requirements for the degree of MBA Department of Business Administration GC University, Faisalabad 1
  2. 2. Masood Textile Mills CERTIFICATE BY THE RESEARCH SUPERVISOR I certify that the contents and form of internship report submitted by Mr./Mrs………………………………, Roll No………….. has been found satisfactory and according to the prescribed format. I recommend it be processed for evaluation by the External Examiner for the award of the degree. Signature…………………................. Name: .............................................. Stamp………………………. Chairperson Dean, Faculty of Management Sciences, GC University, Faisalabad. 2
  3. 3. Masood Textile Mills 3
  4. 4. Masood Textile Mills 4
  5. 5. Masood Textile Mills I would like to dedicate this project report To my beloved parents and respected teachers, because whatever i am today is all due to their prayers and their support 5
  6. 6. Masood Textile Mills PrefaceIt is the age of information & competition. The scientific advancement has made the life moredynamic & competitive worldwide. So one must have practical knowledge and trained enough tolive successfully in present competitive situation because it is becoming difficult to survivewithout creating changes & adapting ourselves according to these changes.The students of MBA receive knowledge during their study, has completely theoretical base. Theirideas remain unsaturated, unless students do not have any practical experience. So to provide thestudents an extensive exposure of practical business aspects, department of business managementsciences arrange a compulsory 6 weeks internship program, for all of its MBA students, in a well-known organization. This thing enables the young business executives to familiarize withprofessional business approach. To enhance their writing skill, the students are also required tomake the written presentation of their experiences during internship program.Masood Textile Mills Ltd. (Apparel Division) a leading organization in Garment sector wasassigned to me for internship. This report is about my experience & knowledge, which I havegained during my internship program. In this report I have made a humble attempt to express mostefficiently and effectively what I experienced & observed at Masood Textile Mills (ApparelDivision). I think that this report will be really helpful for those who want to know about MasoodTextile Mills Limited (Apparel Division) Faisalabad. 6
  7. 7. Masood Textile Mills AcknowledgementAll praises and thanks from deepest core of my heart are for the ALMIGHTY ALLAH. Thebeneficent and the merciful, whose blessing enables me to complete this internship report. With allthe love, I have in my heart and soul, with all the respect i have in my mind and i praise for thegreat personality of the world HOLLY PROPHET MUHAMMAD (PBUH), the city ofknowledge, torch of guidance who has guided his followers to the knowledge from cradle to grave.I am pleased to present this report on the successful completion of my internship at MasoodTextile Mills, Ltd (Apparel Division). I am very thankful to every person that enables me topresent this report which is the result of my hard work, struggle, determination & delegation (topresent it up to the best of its requirements) and blender of co-operation (of the management,supervisors, operators, inspectors, clippers, helpers, machine mechanics, industrial engineers,seniors & the “T & D” of HR), definitely it is a Team Work. I wish to acknowledge a lot ofpeople for their valuable contribution to this report.I am certainly indebted to my Management, for providing us such a great chance to learn. I wouldalso like to extend my gratitude to my honored, valued Sir Qamar Ali (Research Supervisor),who have planned our internship session and help us in every step to complete our internshipsuccessfully. I could not forget his affectionate supervision and invaluable knowledge which hecontributed to work in a multitude of ways.Last but not the least, I express my admiration to my friends and parents. It was only due to theirmoral support that enables us to complete my work efficiently and proficiently. May Allah give them His blessings along happy life (Amin) Ateeba Abid 7
  8. 8. Masood Textile Mills ContentsSr no: Discription Page no: 1. Executive Summary............................................................................................................. 9 2. Objective of the Study....................................................................................................... 10 3. Introduction........................................................................................................................ 11 a. Awards..................................................................................................................... 12 b. Mission..................................................................................................................... 15 c. Vission......................................................................................................................15 d. Customers................................................................................................................ 16 e. Product line.............................................................................................................. 17 f. Organizational Hierarcy........................................................................................... 19 g. Apparel Division...................................................................................................... 21 4. Human Resource Department.......................................................................................... 23 5. Merchandising Department.............................................................................................. 33 6. PPC Department................................................................................................................ 38 7. Production Department..................................................................................................... 43 8. Quality Assurance Department ........................................................................................49 a. MilitarySample Standards........................................................................................ 52 9. Industrial Engineering...................................................................................................... 53 10. Stores .................................................................................................................................. 56 8
  9. 9. Masood Textile Mills 11. Financial Department........................................................................................................ 59 a. Balance sheet........................................................................................................... 62 b. Cash Flow Statement............................................................................................... 64 c. Profit and Loss Account........................................................................................... 65 12. Marketing Analysis............................................................................................................ 66 a. SWOT analysis........................................................................................................ 67 b. PEST analysis.......................................................................................................... 69 13. Conclusion & Recomendations......................................................................................... 70 14. Bibliography....................................................................................................................... 72 9
  10. 10. Masood Textile Mills Executive SummaryIn this 8 weeks internship program I attended the lectures of key departments (Cutting, Stitching,PPC, Merchandising, Quality Assurance, Stores) of this largest knitted garment manufacturers ofPakistan which are delivered by experienced managers running these departments. After attendingthe lectures I also visited these departments for acquiring practical knowledge.All the departments of Masood Textile Mills Ltd. (MTM) start their activities when themerchandising department receives the purchase order (PO) from the customer. This PO is sent toPPC department for further processing. After the PO confirmation the stitching department getscutting from induction department and starts production, other departments also work along withproduction units.I also observed that MTM is fully modernized and equipped with latest cutting, stitching andpacking machines. Complete back track system and Apparel Management Systems are uniquecharacters of MTM. It is fully equipped with quality control laboratory which frequently check thequality of fabric. Quality assurance checks the quality of finished products; it makes sure 100%error free products.Human Resource Department in Masood Textile Mills Ltd. (MTM) is very strong. There are fourmain functions of HR department. Which are Recruitment and selection, Compensation andbenefits, Training and development and Performance appraisal. 10
  11. 11. Masood Textile MillsObjectives of the study:The main objectives of studying the organization are: • A big organization to learn most out of it. • Comprehensive and Systematic functions to enhance my capabilities. • Exports based Company. • More advantageous than locally dealing Company. • Tremendous Transactions. • Public Limited Company. • To Polish my Self. • Practical application of the knowledge obtained in the specific area. • To review whether or not the theoretical concepts of specification are being applied. • Internships will provide me the opportunity to test my interest in a particular career before permanent commitments are made. • Internship will develop my skills in the application of theory to practical work situations. • Internship will develop my skills and techniques directly applicable to my careers. • Internships will aid me in adjusting from university to full-time employment. • Internships will increase my sense of responsibility. • Internship will acquire my good work habits. • Internships will provide me the opportunity to understand informal organizational interrelationships. • To equip myself with enough practical experience to have a good practically, Successful career 11
  12. 12. Masood Textile MillsIntroduction:MTM(apparel division) is a SBU of Masood group.Masood group was founded by Mr.Ch NazirAhmad father of Mr.Shahid Nazir.Kohistan bus service was the first professional step by Ch.NazirAhmad After wards dreamland hotel, sangeet cenima and aizad beverages were established in1978 and 1983 respectively. Mr.Shahid Nazir and Mr.Zahid Nazir helps his father by the formationof industrial cooperative bank along with the development of Rabia trust hospital. Kaka khel Gheemills and a flying training school were founded in 1994. The Masood Textile Mills is a PublicLimited company. The company has latest equipment and machinery to serve globally. Thecompany has modern computerized networking system. All the Accounting and finance relatedwork is carried out through computers. The company has capability in Fabric, Ginning, Spinning,Knitting, Laundry and Apparel manufacturing.The company’s apparel division, which is producing high quality garments, is situated at Sargodharoad, near General Bus Stand Faisalabad. But its registered office has shifted to canal roadFaisalabad. Which is obtained on lease? The company implemented the quality system and hadawarded ISO 9002 & WRAP certificate. The company maintains quality standard at all levels toestablish consistency and efficiency. The company is exporting its products to U.S.A, U.K. andGermany 12
  13. 13. Masood Textile Mills AWARDSFTL Accuracy of Information and Compliance Supplier award (2006)FTL has awarded MTM "Accuracy of Information and Compliance Supplier Award ".JCPenney Purchasing Partnership Award (2004 , 2006)Posted on 12-April-06JCPenney has awarded MTM "Purchasing Partnership Award".UBL - UBL AwardPosted on 12-April-07Divisional Quality Award 2005Posted on 25-May-06 13
  14. 14. Masood Textile MillsJCPenney has awarded Masood "Divisonal Quality Award".WRAP - Worldwide Responsible Apparel Production (2004, 2005, and 2006).Posted on 25-May-06Masood Textile Mills Ltd. is certified by the WRAP Certification Board.Quality Control Award 2005Posted on 21-May-06Fruit of the Loom has awarded Masood "Quality Control Award 2005".Operational Excellence Award for 2002Posted on 23-Jul-03 14
  15. 15. Masood Textile MillsJCPenney has awarded Masood "Operational Excellence Award for 2002".JCPenney has awarded Masood "Best Quality Award for 2002" Certificate."Quality Recognition 2001-2002" CertificatePosted on 30-Nov-02Russell Corporation has awarded "Global Quality Recognition 2001-2002"Certificate.JCPenney Awards Masood "The best supplier of the region award 2001-2002". The ceremony washeld in Singapore on 17th July 2002. Shahid Nazir (C.E.O.) received this award. 15
  16. 16. Masood Textile MillsCompany Mission:"Our Mission is of continual improvement and sustained growth, and of a family of workers. Whoare given the best compensation benefits and working conditions in the region. In this respect,mTm continues to emphasize the need to invest in and develop its most precious resource - itshuman capital. mTm continues to provide training courses and self-enhancement opportunities forall our workers".Vision To be the world’s best apparel companyOrganizational Values Trust…….Integrity…….RespectQuality Policy 1. Customer’s satisfaction 2. Zero Defect/Never Ending Improvement 3. Total Quality Management 16
  17. 17. Masood Textile Mills Main Cuctomers of MTM: Champion Chaps Calvin Klein Dockers Product line:MTM is a leading apparel company in Pakistan having expertise & machinery capable oftransforming customer ideas into superior quality garments, which are taken as the most GAP Hanes JCPenney Levisfamous brands in the world. Nautica Polo Polo R.L Russell Speedo Tommy Hilfiger Tom Tailor Vantage Sears Jockey Guess Foot Locker 17
  18. 18. Masood Textile MillsTypes of fabrics: • Jersey • Single jersey • Bird eye • Striper • Lycra • Sueded • Double • Heavy jersey • Rib • Interlock • Terry • Waffle • Mini thermal • Pique/pk fabric 18
  19. 19. Masood Textile MillsVertical Operations: Spinning Knitting Fabric dying Mills Finishing Laundry Cutting Stitching Finishing Apparel Division PackingOrganisational Hierarchy: Chief Executive Officer 19
  20. 20. Masood Textile Mills General manager Senior Manager Manager Deputy Manager Assistant Manager Senior Officer Officer Management Trainee Employees Permanent Employee Mills 6500 Garments 9515 15015 20
  21. 21. Masood Textile Mills Piece Rate Workers Mills 4000 Garments 4529 8529 TOTAL 23544Departments Departments can be distinguished into three categories Operations, Services & Finance1. Operations• Production Planning & Control• Industrial Engineering• Cutting• Production• Quality Assurance2. Services• Human Resource• Information Technology• Merchandising• Purchase• Quality Assurance 21
  22. 22. Masood Textile Mills• Product Development3. Finance• Accounts• InventoryAPPAREL DIVISION Organizational StructureFlow of Apparel Division• Marketing • Merchandising• PPC• Cutting• Induction• ProductionSewin to Pack• Quality Control• QualityAssurance• External Audit• Shipment 22
  23. 23. Organizational Structure of Apprel Division: General ManagerDiv. Manager Div. Manager Production Manager AP Manager Unit Manager Quality Control ManagerProduct Inline Clippin Finshi Packin ion Superv g ng gSupervi isor Superv Superv SupervOperat Inline Clippin Final Packin ors Inspec g Inspec g tor Person tor Person
  24. 24. HRM DepartmentAt a general level, it is important to analyze training needs against the backdrop oforganizational objectives and strategies. Unless you do this, you may waste time andmoney on training programs that do not advance the cause of the company People may betrained in skills they already possess the training budget may be squandered on rest andrecuperation sessions, where employees are entertained but learn little in the wayrequired job skills or job knowledge, or the budget may be spent on glittering hardwarethat meets the training director’s needs but not the organization’s.It is also essential to analyze the organization’s external environment an internal climate.Trends in the strategic priorities of a business, judicial decisions, civil rights laws, unionactivity, productivity, accidents, turnover, absenteeism, and on the job employee behaviorwill provide relevant information at this level.However, assessing the needs for training does not end here. It is important to analyzeneeds regularly and at all three levels in order to evaluate the results of training and toassess what training is needed in the future. At the organizational level, senior managers who set the organization’s goals shouldanalyze needs. At the operations level, the managers who specify how the organization’s goals aregoing to be achieved should analyze needs.At the individual level, the managers and workers who do the work to achieve those goalsshould analyze needs, keeping in mind that performance is a function both of ability andmotivation.Human Resource PlanningHuman resource planning is all about measuring the organization need to identify thenumbers of employees and skills required to do those jobs. Further, an understanding ofavailable competencies is necessary to allow the organization to plan for the changes tonew jobs required by corporate goals.At MTM, major changes according to economic and social environments are requiredpurchasing new and additional office equipment to enhance efficiency e.g., computerhardware or software, coping with the recall of a defective product and dealing with theneed for a new design e.g. new automatic rotary machine.This suggests several specific, interrelated activities that together constitute an humanresource planning system.They include:
  25. 25. A talent inventory to assess current human resources and to analyze how they arecurrently being used. A human resource forecast to predict future HR requirements. Action plans to enlarge the pool of people qualified to fill the projected vacanciesthrough such actions as recruitment, selection, training, placement, transfer, promotion,development and compensation. Control and evaluation to provide feedback on the overall effectiveness of the humanresource planning system by monitoring of HR objective..Structure of the HRM Department:  Manager HR Assit Manager HR Sr. HR executive HR executive HR Assistant
  26. 26. Number of Employees working in HRM Department Now I’ll discuss the personnel management of Masood textile Limited under various steps of Human Resources Management Masood Textile also knows this fact and has personnel department. Personnel Department of Masood Textile can be critically analyzed on the basis of various steps of human resources management process. First I would like to describe the ware bouts of department. Department is situated in an old building which was constructed at the time of establishment of Masood Textile. There are about 100 personnel who actually handle the department’s affairs.   Major Functions of HRM department Every organization whether it is a multinational conglomerates a small business, a religious institution or a government agency depends on people. Appropriate candidates for each job from chairman of the board to night shift janitor must be located either inside or outside the organization and they must be convinced by pay benefits and working conditions to take and keep the job. They must also be trained and motivated. Handling these functions is part of human resources management’s job. Functions of HRM Department Rewards TimeRecruitm Compensa T&D & Managem ent tion Benefits ent Recruitment There are two types of recruitment  Permanent Recruitment
  27. 27.  Contractual RecruitmentPermanent Recruitment: • Management Level • Non Management LevelManagement Level Management Trainee M6 Merchandiser M5Assistant Manager M4 Deputy Manager M3 Manager M2Senior Manager M1Non Management Level Unskilled Worker S4 Semi-skilled Worker S3 Skilled Worker S2 Supervisor S1T&DOff Job TrainingOn job Training
  28. 28. College VisitsInternships Seminars, Lectures, functions etc.Rewards Performance Reward System PRS Unit of the Month Best Final Inspector Best Inline Inspector Best Cutting Inspector Promotions OvertimesCompensations and BenefitsLeave PolicyTo grant different kinds of leave to its employees in order to facilitate them toattend, to their domestic and social responsibilities.Types of leaveThe types of leave available to employees are,1) Causal leave2) Sick leave3) Earned leave4)Leave without pay
  29. 29. 5) Maternity leave • Casual leaves:Every employee will be eligible for ten days causal leave in each calendar year.1)Causal leave can be granted on pro-rata basis, proportionate to the length ofservice.2)Un-availed causal leaves shall lapse automatically at the end of every calendar year.3)Causal leave cannot be combined with any other type of leaves except sick leave.4)Causal leave can be availed for a maximum period of 3 days at one time. • Sick leaves:Every employee will be eligible for eight days sick leave in each calendar year.1.Sick leave will be granted on pro-rata basis, proportionate to the length of service2.Sick leave exceeding 2 days must be supported by a medical certificate from aregistered medical practitioner.3.Sick leave may be Accumulated up to a maximum of 16 days • Earned leaves:Every employee will be eligible for earned leave as followsWorkers-14 daysStaff-15 days1.Earned leave will be due only after completion of one year’s continuous servicewith the company from the date of joining.2.Earned leave shell be credited to the employee account at the end of each year ofservice3.It is incumbent for management staff in grade M-12 and above to avail aminimum of 15 days earned leave in a calendar year.
  30. 30. 4.Earned leave lying to the credit of an employee will be encashed at the time ofseparation for the company for employee up to Grade-12. • Leave without pay:There is no provision of leave without pay in Law. How ever extra-ordinary leavewithoutpay may be granted at the discretion of the competent authority in specialcircumstancesinvolving absence from duty • Maternity leaves:1)Female married employees who have been employed for more than one year willbe granted maternity leave.2)Maternity leave of 12 weeks, 6 weeks each before and after the delivery will begrantedon production of medical certificate from a registered medical practitionerLeave Encashment Sick Leaves 8 Casual Leaves 10 Encashment Leaves 14 32Other BenefitsEOBI (Employee old age benefits & InsuranceDeath GrantsMarriage Grants
  31. 31. ScholarshipsGroup InsuranceHealth InsuranceTime Management Card Scanning system Keep the daily attendance of employees.Make the settlement of the resigned employees to be further proceeded to the H.RDepartment.Gives the half leaves or temporary leave for about 1 to 2 hoursOther Responsibilities Grievance Handling Charge SheetAdministration Department Security House Keeping Transport
  32. 32. Support of HR to other DepartmentsThe H.R Department is the key strength of any organization in motivatingemployees, managing HRMIS system, dealing external affairs, handling with eachdepartment’s performance, making promotions etc…..so my major area was HumanResource Department.Through job rotation policies and by extensive interaction with managers in all otherfunctional areas. Unless these executives are perceived as equals by their corporate peers,their ability to make significant contributions to the firm will be diminished.Require the senior HR executive to report directly to the CEO. At present this occurs inabout 70 percent of companies nationwide. Consider whether any corporate resource ismore important than its people. Ensure that the top HR officer is a key player in thedevelopment and implementation of business plans providing early warning regardingtheir acceptance and serving as the CEO’s window on the organization and as a soundingboard.Representatives from HR and line managers from the business unit generate key businessstrategies for the coming year. To do so, they identify major external and internal factorsthat may have an impact on the future of the business, together with future customerrequirements.
  33. 33. Mechandising Department:It is bridge between customer and factory. It is performing the task of marketing inMTM. The objective of merchandising department is to retain the existing customers, andkeep continuously communicate with them and also to attract new customers.CEO andMarketing Manager attend different exhibitions all over the world to attract thesesourcing companies. All the sourcing companies are the Customers of the MasoodTextile Mills. Merchandisers are the representatives of Masood and they keep contactwith customers. Merchandisers also try to acquire new customers and contracts throughpersonal selling.Hierarchy in Merchandising Department GM. Marketing Associate Merchandising Asst. Merchandiser GM. Marketing Merchandiser Management Trainee
  34. 34. Asst. MerchandiserNo of Employees in Marketing DepartmentMr. Tayyab Masood is General Manager of Marketing Department of Masood TextileMills Ltd. There are almost 103 numbers of employees working in marketing department.Working of Merchandising:A merchandiser receives a product package (ppk) which contains time line, fabric detail,article description (polo, Henley, crew neck) and accessories detail. After receiving thePPK the merchandiser sends it towards PPC department that checks availability, price,quantity and quality. After that the merchandise accepts the order and then send themproto sample. Price negotiation will start. Price is determined on two basis either it iscustomer based or it is product based. Customer based pricing is done by keeping in viewthe market position of the customer .The factors which they take into consideration arebrand popularity and the income level of the ultimate customer Product based pricing isdone by the specifications of the product. After accepting the proto sample fit sample issent to buyer and after this clearance production in bulk is started. Functions of Merchandising:  Market analysis  Data analysis  Sourcing  Procurement  Product planning and R & D
  35. 35.  Pricing  Distribution  Communication  VisualThere are main two main products used in the seasons:Replenishment productsSeasonal productsProduct PackagePPK involves 4 types of information’sFabricationCMTQuotaShipmentFabricationThe type of fabric that will be used to make the product different types of fabric are used,like single jersey, fleece etc.CMTCMT stands for cutting manufacturing and trims .QuotaQuota is fixed for different countries according to the garment style.Note: with the implementation of “WTO”, quota system has been deleted in the practiceof import and export, so it will no further exist.Shipment
  36. 36. Shipment includes the ex factory and the ex country dates that are given by thecustomers.Whenever the merchandiser receives the product package following things are done: • Costing • Proto sample • Fabric development • Accessories developmentShipment is done through two ways • By boats • By airMode of transactionWhen the merchandiser negotiate with the customer he demands letter of credit and bankguarantee etc from the customerFollow up by the merchandiserMerchandiser is involved in the process from receiving the purchase order and paymentCountries of Export:MTM is making a good effort to increase the market share. Today company is exportingits products to many countries like, • USA. • Hong Kong
  37. 37. • Japan• Germany• Malaysia• Singapore• Korea• Thailand
  38. 38. PPC (production planning & control)PPC stands for product planning and control. As its name indicates its function i.e., toplan a purchase order and control thereof. PPC is the bridge between merchandising andproduction department. PPC department plays an indispensable role in a garmentmanufacturing company. Its responsibilities start from the negotiation betweenmerchandiser and customer and ends on the shipment of PO. This department works onthe basis of 3M’s (Man, Machine, and Material). Producti Merchandisi on ng PPC There are three sections in PPC department.• Planning• Costing• ControlFunctions of PPC:
  39. 39.  Optimization of resources (man, machine, material)  Costing research and development(R&D)  Purchase order receiving  Capacity  Time line (time, action)  Fabric accessories (stitching and packing)  Fabric demand plan (lead time)  Accessories demand planHierarchy of PPC Department: PPC ( senior Manager) Senior Deputy Manager Deputy Manager Assistant Manager Senior Officier PPC Officier
  40. 40. Working of PPCBuyer sheet or product package received by merchandiser that PPK includes• color and size breakdown• what is the GSM required• what are the finishing parameter• garment wash or not wash• size specs parameterColor and size breakdownIt means that how many pieces are required . if color and size are not available .Cutting cannot and consumption will not be accurate.GSM requirementGSM is given by the customer it is gram per square meter .if GSM is more lesspieces are made. if the GSM is less more pieces will be made.Factory finishing standardsFactory finishing standards like torching, bowing, skewing, ph value, shrinkage,color fastness.Garment wash or not garment washHow many washes the customer are requires when the garment is wash theirGSM and shade problemSize specs parameterLength size, color size arm holes, shoulders length etc. Margins are always keptso that after washing it comes to the actual specs
  41. 41. If the garment is not to be washed there is no need to keep the margin.Costing steps• Costing• Time lines• To plan the accessories• Fabric planning• Unit planning In costing you have to see each and everything• Type of fabric• Gram mage of the fabric• Finishing standards• Yarn quality• Knitting charges• Recipe costThe cost details are given to the merchandiser and he communicates with thecustomer. if the price is acceptable then the order is givenThen PPC has to plan that order it will take into consideration three things• Material planning• Machine availability• Unit planning•
  42. 42. Material planningMaterial planning includes the fabric plan and the pattern availability detailsabout the accessories etc.Machine availabilityThen PPC has to see that machines are sufficient to run the purchase order.Unit planningThe purchase order will be run in which unit so we have the productioncapability so we have skilled labor to perform the task.
  43. 43. ProductionThere are total 12 stitching units with over 1,749 stitching machines, mannedwith the most skilled and expert operators, Masood is capable of producing about150,000 dozens approximately per month versatile garments ranging from basicto high fashion, men’s, women’s and kids with maximum flexibility in size andcolor assortments. The Quality control and Quality Assurance departments are inplace to make sure the company’s objective of zero defect. Computerized Barcoding and Back Track systems provide Masood 100% predictability and trackingperformance. Orders of different companies are processed in different unitsaccording to their skills. They operate under the objective of “Zero Defect”. Herequality control is merged with the production.Management hierarchy Production departmnet Senior Unit Production Production Production Manageemen Manager t Trainee
  44. 44. Assitant ProductionProduction flowProduction department receives samples from the merchandising department theproduction department finalize the flow by keeping that sample in mind. The taskis to improve productivity and to have the maximum outputProcessProduction process Is as follows: 1. Stitching (Process flow) 2. Clipping 3. Ironing 4. Finishing 5. Packing 6. ShipmentProduction supervisor’s job responsibilities • Setting of flow • Arrangements of machines • Checking of induction • Arranging number of operators according to flow
  45. 45. • To meet the targetsIn line supervisor job To maintain quality and help in line inspectorIn line inspectors To check the garment is stitching quality operation wise.Kinds of needlesNo. 9 to 14Kinds of Machines • Flat lock • Button Hole • Bar take • Heat Transfer • Feedo • Mini Cylinder • Auto trommer • Zig Zag • Button Attach • Cylinder Bed • Elastic Attach
  46. 46. • Overlock • LockstitchFrom cutting department the pieces goes to the productiondepartment for stitching. The pieces are stitched than it goes inthe enter. From here the stitched fabric goes to clipping toremove the extra threads. Then the garment goes for finishing.Finishing flows• Pressing• Final inspection• Super inspection• Specs• PackingMajor Finishing faults Stain (oil, dust) Alter (skipping, stitch broken) Rafu (small holes)In final inspection stain, alter and rafu faults are removed. Ifthere is a major faults are send to reprocessing.Packing procedureAfter finishing the garment goes in packing, ID labels Stickers are pastedGarments are folded packed in ploy bags. After that packed in master poly bags.
  47. 47. Different types of packing• Assorted packing• Solid packing• Catalog packingAssorted packingColor is same but different sizes ratio are packed together, OrSize is same but different sizes ratio are packed togetherSolid packingSame color and same sizeSolid by color (Color remains same)Solid by Size (Size remains same)Catalog packingDifferent sizes and different color, say according to the requirements of the buyer,each bundle will have its own specification and packing detailsShipment moves to store ASN (advance security note) Security sticker Bar code sticker
  48. 48. Production problem• Pieces are rejected• Pieces are short In both the cases short fall are sanded to PPC department
  49. 49. Quality:It is a standard achieved by process to render defect free product.Quality control:Implementation of process to achieve the required standard.Quality assurance:Preventive measures taken to make defect free product.Responsibilities of quality assurance:There are three responsibilities of quality assurance. (1) Monitoring the system (2) evaluating staff involved (3) assuring quality of productHierarchy of Department Manager Quality Assurance Deputy Manager QA Assistant Assistant Manager Manager Internal Final Audit good QA Officer QA Officer
  50. 50. Acceptable Quality LevelAQL mean a standard of Rejection and acceptance defined by the mutualconcentration of buyer and seller, where they mutually decides size of the sampleand standard for rejection and acceptanceOverall Quality LevelOQL is a standard where garments are audited on their total rating, also calledaverage quality rating, after the AQL, when over percentage of rejection is checked itshould also comply with the standards already defined or decided in agreements.Close Loop Corrective Action(CLCA): 51
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  53. 53. Industrial engineeringIndustrial engineering is that branch of engineering, which deals with the Productivityincreases the using all the available resources. These resources are following. 1. Men 2. Materials 3. Money 54
  54. 54. 4. Machine 5. Methods 6. Systems 7. Land/spaceIndustrial engineering provides us a systematic (step by step) organized way of increasingproductivity using simple techniques.Productivity:It is defined as the ratio of output and input i.e. Productivity = Output / InputFrom the above formula .it is very clear that one or the combination of the following wayscan increase productivity: (a) Decreasing input, while keeping the output same. (b) Increasing output, while keeping at the input same. (c) Increasing output appreciably with slight increase in the input. (d) Decreasing output slightly with significant decrease in input.Scope of I.E.Industrial engineering techniques are applicable everywhere, starting from a smallOffice, home, training places, small industry to a large industry.It helps in:  Better layout planning. 55
  55. 55.  Designing work aids.  Re structuring an organization/ Re engineering  Methods improvement.  Training in better methods  Setting SAMs for the better methods  Problem solving using studies by scientific methodsAdvantages:  Managing extra work in the same available space.  Vacating extra premises got on rent.  Increased output with the same manpower and machines.  Increased quality due to better managing/methods  Reduced throughput /cycle time, using refined layouts.  Reduced crises-cross movement of men and materials  Less W.I.P, using better systems (line lay out)  Bette5r money circulation, as less capital tied up in W.I.P.  Less material wastages, as no place to hide. 56
  56. 56. StoresThere are three stores in MTM.  Main store  Fabric store (Stock pledge)  Shipment storeMain Store:There are two types of things, which come under main Store. 1. General: Stationary, machine parts, maintainace and sentry etc. 2. Accessories: Buttons, thread, zips, labels, and needles etc 57 Main After approval After approval Store issue Forward QualityReceived Goods check by store Store issue Procurement Quality control Goods Gate Pass Inward Gate GRN take over Purchase General Acc. Received Inward Demand GRN take over Accessories
  57. 57. Shipment store:As it is evident from the name, purchase orders which are ready to be shipped, are storehere. In Masood when production order is completed then it is packed in boxes and barcodesare pasted on them. These barcodes contain all necessary information regarding the contentsof boxes. All the information regarding the Quality checks of shipment is done here. On theday of shipment the boxes are loaded on trucks and final entries are stored in computer. The process of the shipment store is Receiving Racking (customer wise) Receive to quality Audit for QA OK report after audit Green slip only on audit Packing list (merchandiserFabric store:The PPC department sends demand of fabric to fabric store according to plane of partyorder, which is required by buyer. When the fabric reached at main gate then received by thefabric store, on the gate only the weight of the fabric is checked. Inspection of the fabric ishandled in mills in Fabric Inspection Department (FID). When fabric is reached at gate theninterword gate pass is made. Then fabric shifted into store in the racks and racks areaccording to customers. When the fabric is rejected it come first in store then sent to millsby making Outward Gate Pass (OGP) 58
  58. 58. 59
  59. 59. Structure of Finance Department: a) No of EmployeesMasood Textile Apparel Division Finance Department consists of 38 employees at differentlevel with different job descriptions. 60
  60. 60. b) Finance & Accounting Operations o Maintaining the data base of accounts department o Historical and periodical reports o Presentation of Financial Statements o Cash flow statements and cash disbursement o Bank reconciliation statements o Reconciliation with parities o Variance analysis o Production vs. shipment analysis o Analysis on loss of profits o Performance evaluation reports o Yield analysis o Monthly Stock reports of all units & stores o Working of Compliance Audit.Function of Finance Department:Accounting SystemsFinance SystemUse of Electronic Data in Decision MakingMobilization of FundsGeneration of FundsAllocation of Funds 61
  61. 61. Financial Analysis 62
  62. 62. In 2008 Deffered income on sale and lease back of operating fixed asset are 4,891 and in2009 it is decreased by 2,515In 2008 total equity and liabilities are 8,234,421 and in 2009 it rose to 9,621,739In 2008 non current assets are 3,047,941 and in 2009 it rose to 3,166,615And current assets in 2008 are 5,186,480 and in 2009 it is increase by 6,455,124So total assets in 2008 are 8,234,421 and in 2009 it is increase by 9,621,739 63
  63. 63. Net cash generated from operations was 981,748 in 2008 and in 2009 it decrease to 632,821In 2008 net use in investing activities is 415,397 and in 1009 it is decrease to 370,513Net cash use in financing activities in 2008 was 1,458,832 and in 2009 it is decreased to78,537So cash at the end of the year of 2008 was 137,255 and in 2009 it is increase to 321,026 64
  64. 64. Sales in 2008 was 7,884,785 and in 2009 it is increase by 10,946,180So Gross profit is also increased in 2008 it was 1,455,987 and in 2009 it is 2,094,764Profit after tax in 2008 was 333,753 and in 2009 it is increased to 451,706So earning per share in 2008 was 11.13 and in 2009 it is increased to 15.06 65
  65. 65. Major Competitors of the Organization 66
  66. 66. The major competitors of Masood Textile Mills Limited are as 1. Chenab Fabrics Limited 2. Amtex Limited 3. Arzoo Textile Mills Limited 4. Sapphire Textile Mills Limited 5. Crescent Textile Mills LimitedThese are the local competitors at the textile city but MTM face in international market sotheir competitors are the CHINA, INDIA and BANGLADASH in these countries labor is somuch cheaper available, so they sell their product in the international market cheaper ascompare to Pakistan.Core competence:The core competency of the MTM is it IT based system and quality control.Unique selling point (USP):Quality control system is their usp. SWOT Analyses of MTMInternal factorsStrength • Quality products • Skilled labor • Using modern and latest technology • Back track system • Highly educated management • Vertically integrated system • Using apparel management system 67
  67. 67. • ISO certifiedWeaknesses • Having low space • High turn over • Communication gap between different departments • N- corporative culture • High production costExternal factorsOpportunity • Exploring new markets • Capturing European countries • Can expand their operations and finding new market segments • Using their own label • Opening their outlets throughout the world • Globalization • End the quota system, now they expand the business • Full potential of entertaining the local marketThreats • Competition increase in that particular region. • Depend only a few customers • Low price offer other competitors just like china & India • Politically instability in Pakistan • Change government policies that are not in favor of textile industry • Globalization PEST Analysis 68
  68. 68. Political situation: The political situation of Pakistan is not satisfactory and unstable. Rapid change inthe Govt. and the change of the policies of the previous govt. by the new govt. abruptlyeffect the Pakistan’s political situation. Due to these entire factors the foreign investorhesitates to invest in Pakistan.Govt. should device such policies that are beneficial for the local exporter as well as for theinvestors.Economic Situation: The economic condition of Pakistan is not suitable for investment. Market growth rate is very low and new investors hesitate to invest. Increasing inflation rate due to heavy loan make the business environment strict. Actually increase in inflation rate leads to high cost of production so our country products sell out at a high price but with low margin.Social Situation: The change in the lifestyle of the people affects the growing demand of the MTMproducts. The change in the lifestyle and needs in different demographics also affect thedemand of the customers.Due to all these changes MTM is performing excellent for the excellence of organization aswell as for the customer.Technological Factor: Technological advancement in all the sectors of the country has changed the entiresocio-economic environment. Especially textile sector has incorporated technologicaldevelopment and advancement in their organizations. 69
  69. 69. Conclusion & RecomendationsMasood textile mill is the best knit wear in the world. In a short span of time, the companyhas established a good image in the international market.Although there is a tough competition in the international market, but Masood textile mills iscontinuously going on its way to prosperity .The main customers of Masood are, JCPENNY, SARA LEE.They have established a good image in the mind of its customers. This is all due thecompany’s high quality products. Company quality assurance department is so wellestablish that some times the customers request the quality inspector to visit some othercompany s where their other products are being manufactured, so the quality of thatcompany can be checked.China, India, Bangladesh are the major countries, which have direct competition withPakistan. Due to quota system the company has accepted only limited orders. The mainadvantage to the company is of its mills unit. The company has manufactured the fabricitself, so the cost of the production of the company is much reduced. Raw material likefabric and ribs are produce by itself.Suggestions  Need to develop a culture of cooperation and teamwork. For this purpose a revolutionary commitment from higher management is required at this time, otherwise MTM may not be able to cash the benefits of quota elimination.  The misbehavior of some responsible managers with the working force is creating unrest and feelings of being treated like slaves among the workers. For the purpose of improvement in this sector the line management should be trained and must be educated how to behave the workforce.  Decentralization of authority should be there. With the active participation of all the management level employees in the decision-making is fruitful for MTM. Employees should be encouraged to come up with revolutionary thoughts. 70
  70. 70.  Proper training at each level should be given to the employees.  Special incentives like bonus on Eid and on other special days should be given to the employees.  Should hire well-educated, trained, and experienced young professionals.  There should be a complete follow up of ISO 9002 certification according to desired quality standards.  The low capacity is generating problem for MTM. Due to low capacity the MTM has to: a. Procure Yarn from market, which cause delays, variations and high prices. b. Knitting from out door, that cause delays, variations and high prices. c. Dying and finishing of the fabric from out door, that also causes the same above mentioned problems.The biggest problem that I think this low capacity is generating is extraordinary pressure onthe working force. This creates mental toughness and stress among the employees,especially among the PPC department staff.The solution to this entire problem is obviously the increase in capacity of production. Butthis task should be done systematically through proper planning and after preparation offeasibility report. 71

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