Semester Project PresentationMGT 301 Production and Operation Management
Aneeq Ahmed | Minaam William
Mohammad Ali Hashmi | Osama Hasan
ChE-01-A
School of Chemical and Materials Engineering (SCME)
National University of Sciences and Technology (NUST)
The Founder
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Syed Babar AliA Chemical Engineer and an Entrepreneur
Packages Limited
• Established in 1956 as a joint venture between the
Ali Group of Pakistan and Akerlund and Rausing
of Sweden, Packages Limited provides premium
packaging solutions for exceptional value to
individuals and businesses.
• The only packaging facility in Pakistan offering a
complete range of packaging solutions including
offset printed cartons, shipping containers and
flexible packaging materials to individuals and
businesses world-wide.
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Packages Limited
• Clientele includes illustrious names such as
Unilever and Pakistan Tobacco Company, who
have been customers for over 50 years.
• Employs over 3000 people and had sales of over
US $ 100 million in 2004.
• Listed on all three stock exchanges in Pakistan, it
has has maintained a long-time credit rating of
AA.
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Packages Limited
• Joint ventures and business alliances with some of
the world's biggest names reflect the forward-
looking strategy of continuously improving
customer value through improvements in
productivity.
• Packages has always been at the forefront of
new developments in packaging research and
has pioneered several innovations, including the
use of wheat straw as a raw material for paper
and board manufacture.
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What Packages do?
MANUFACTURES AND SALES OF• Paper (Writing Paper, Machine Glazed/Special Poster
Paper, Fluting Paper, Liner For Shipping Cartons,
Corrugating Medium Paper, Wood-free Writing/Printing
Paper;)
• Paperboard (Carton Products , Corrugated Cartons)
• Packaging Materials (Packaging Films and Laminates )
• Consumer Products (Tissue Papers, Personal HygieneProducts)
• Finished and Semi-finished Inks
OFFERS• Specialized Services (Rotogravure Printing and Sleeve-
making)
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Mission Statement
... a market leader by providing quality products andsuperior service to our customers, while learning from their
feedback to set even higher standards for our products.
... a company that continuously enhances its superior
technological competence to provide innovativesolutions to cater to customer needs.
... a company that attracts and retains outstanding
people by creating a culture that fosters openness and
innovation, promotes individual growth, and rewardsinitiative and performance.
... a company which combines its people, technology,
management systems, and market opportunities to
achieve profitable growth while providing fair returns to itsshareholders.
... a company that endeavors to set the highest
standards in corporate ethics in serving the society. 7
Core Values
Smart Governance
Work Environment
Our People
Conservation
Customer Satisfaction
Ethical Behavior
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Corporate Structure
Paper and Board
Consumer Products
Packaging
manufactures paper and
board from a mixture of
wood, pulp and other
raw materials, and treats
effluent
takes materials
from the Paper
and Board
Division and
converts
customer ideas
into finished
products
manufactures off-
the-shelf branded
consumer products 9
Products
• Paper and Board
• Carton Business Unit
• Corruwal Business Unit
• Flexible Business Unit
• Consumer Products
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Paper and Board
Mill Division
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Paper and Board Unit• Production capacities exceed 100,000 tonnes per annum,
from four main paper machines of different capabilities.
• These paper machines are supported by two pulp mills
and a chemical recovery and effluent treatment plant
along with allied support services.
• Packages Limited is among the first companies in the
world to manufacture paper & paper board using a pulp
mixture of wheat straw, kahi grass, cotton linter, recycled
pulp and wood pulp.
• These environment-friendly processes use fewer chemicals,
resulting in improved strength properties and increased
stacking strength of containers.
PRODUCES– high gloss writing paper
– machine glazed / special poster
paper
– fluting paper
– liner for shipping cartons
– corrugating medium paper
– wood-free writing/printing paper
Paper quality and weight is determined
by the client's specific requirements and
Packages ensures this is carried out to the exact specifications provided.
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Paper
Manufacture several types of board. Food Board, a basic raw
material in liquid food packaging, is being manufactured
since 1979 for Tetra Pak Pakistan Limited. This material is used
in making aseptic packaging for milk, cream, oil, fruit juices
and other perishable food items. Some of our board products
are:
• liquid packaging board
• food grade board
• duplex board / chipboard
• bleached board
• tobacco board and cardboard
• liner board
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Board
• The Carton Business Unit's technical competence is
reflected through two modes of printing: offset (forcomplex design) and rotogravure. (for higher volumes)
• A new Lemanic rotogravure printing and inline cutting
creasing machine was also in the year 2000.
• New lines have been introduced with the addition of aRoland 700 double coater in the Offset Printing
department, a Bobst Evoline in the Cutting and Creasing
and a Bobst Media 100 in the Folding and Gluing
departments.
• The state-of-the-art Roland 700 with twin coating has
enabled Packages to introduce innovative printing with
special effect coating and gold coatings.
Carton Board Unit
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• Carton Business Unit production experts work closely with
pre-press and technical staff to deliver a durable,
aesthetically pleasing and technically sound package
to the customer.
• The total board consumption of the carton line is around
18 - 20 thousand tonnes per annum. Clients include:
– Food and Beverages
– Soap / Detergent
– Pharmaceuticals
– Match
– Electronics
– Shoe
– Tobacco
– Paper Cup
Carton Business Unit
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• TECHNICAL EXPERTISE
Our corrugated finishing division can print in up to threecolors. Customers have the flexibility to choose from
regular slotted containers (RSC), glued, RSC stitched or die
cut cartons.
• PRODUCT DEVELOPMENT
After customer feedback and extensive research,
Packages has developed special liner and fluting that
gives extra strength to containers, in particular increasing
their stacking strength and their resistance to bursting.
Corruwal Business Unit
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• Packages has been manufacturing corrugated cartons
since 1974. Produced in a variety of sizes, these cartons
are of great value for in-country goods distribution and
export. Capacity increase and product development
continue to be of high priority.
• Corrugated cartons are of great value to our diverse
portfolio of customers for secure transportation of their
products to local and international markets. With the
commissioning of our corrugated plant in Karachi, we
have the capability of producing seven millioncorrugated cartons to cater to the ever-increasing
demand of high quality shipping cartons.
– Textile
– Food
– Tobacco
– Soap
– Detergent17
Corruwal Business Unit
• With improved barrier properties and lower cost
compared to rigid packaging, flexible packaging is
steadily gaining importance in the packaging industry.Our flexible line makes high quality packaging films and
laminates, and offers other specialized services such as
rotogravure printing and sleeve-making.
• Flexible packaging combines different plastic films,aluminum foil and paper to produce laminates of two or
more layers for providing layered protection against
moisture, gases and odours. Used where colorful
package design and preserving product quality areimportant, such as in the food and pharmaceutical
industries, flexographic printing offers economy with
quality.
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Flexible Business Unit
Soap
Tobacco
Tea
Food
Diary
Ice-Cream
Milk powder
Confectionery
Shampoo
Pesticide
Pharmaceutical
A range of products for those annoying problems in life: our
consumer products feature great ideas for making
everyday living easier and more comfortable, both indoorsand out.
– Tissue Products
– Personal Hygiene
– Paper Products
Reflecting our core values of exceeding customer
expectations through innovation, leadership and
teamwork, the Rose Petal and Tulip brands continue to hold
over 80% of the domestic market share of the tissue papermarket in Pakistan. We also have a leading market share in
the away-from-home business: we supply custom-printed
boxes, table napkins, coasters and paper cups to
institutions such as hotels, fast food chains, restaurants,businesses and the airline industry
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Consumer Products
AREAS IN FOCUS– Location, Design and Layout
– Quality
– Inventory Management
– Customer Satisfaction
– Environmental Policy
Production and Operation Management
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Packages was established in 1956. Lahore was then
selected as the site due to three major reasons:
• Easy availability of workers
• Easy availability of raw materials
• Easy transportation all over the country
The site continued to serve the objective for more than five
decades, but due to population density in vicinity, the
paper mill has now been shifted to a rural area near Qasur.
Location, Design and Layout
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• Corrugating Unit has
been shifted to Korangi
Industrial Area, Karachi
to reduce the
transportation
expenses.
• The current plant site at
Shahrah-e-Roomi, was
such planned that it
continued to serve the
objective for over five
decades
• Buffer regions were left,
and buildings were
mostly ground / first
floors.
Location, Design and Layout
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Location, Design and Layout
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Location, Design and Layout
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Quality Policy
25Total Productive Maintenance Pillars at Packages Entrance
We at Packages Limited are committed to producing
quality products which conform to our customer
requirements and strengthen our position as a quality-
managed company.
Our pledge is to provide the market with the best quality
products at competitive prices through a customer-driven
and service-oriented, dynamic management team.
To meet this obligation, the company will continue
updating skills of its employees by training, acquisition of new technology, and regular re-evaluation of its quality
control and assurance systems.
Appropriate resources of the company will be directed
towards achieving the quality goals through employeeparticipation.
Quality Policy
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• Complies with the ISO 9001 standard
• 6th company in Pakistan to adopt the ISO series as itsquality standard
• Maintains 57 Quality Improvement Teams in various
departments to ensure continuous improvement focus
in the organization
• Nurture Key performance indicators (KPI) concept:
Each division in the company sets SMART (specific,
measurable, achievable, recordable and time-based)
targets for the annual improvement of its key processparameters, reviewed by the management every
quarter
• Maintain a comprehensive set of engineering tools,
rules, processes, training materials, guidelines, best
practices and other supporting documents to make
sure our products comply with every possible customer
requirement.
Quality Highlights
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• Quality Assurance (QA); the pro-active approach toavoid reoccurrence of problem in future.
• Quality Control (QC); the reactive approach to the
damage borne.
• Correction; Reject clients undesired objects – Expensive
• Corrective Action; Laboratory Tests, Quality Audits
• Preventive Action; QA, Planning to avoid future rejects
Maintaining Quality
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• Customer Satisfaction in Terms of Quality – process
inspection from raw materials to consumer
• Trainings for Management and Staff – measure of
dispersion, central tendency, standard deviations,
defect matrix, bandwidths etc
• Quality Inspections Laboratories – 6 labs, each at theend of each production cycle, certifies or declines the
product clearance to market
• Supplies Quality Assurance – verification of ‘certificate
of analysis’ by the supplier about particular order
• Quality Improvement Projects (QIPs) – quality circles
with members from QA, Inventory and Supply Chain
• Quality Conferences – Kaizen Conference (Japanese:
Continuous Improvement) monitory awards for quality
work; Productivity Conference recognition for yearly
performance
Quality Assurance Department
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Quality Assurance Department
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Gloss Test for Card Sheet
QA Lab at Paper
and Board Mill
Area
• Packages maintains her inventory under the auspices of
Supply-Chain Department
• ISO 90001 and 14001 are implemented
• FIFO (First In, First Out) is the order
• Stocks are managed through SAP (System Application
Procedure)
• Materials dealt include: raw materials, spare parts,
production supplies and general items
• A demand is generated when requisition is made by
any stake holder, followed by a computerized stock-
check leading to issue or purchase order
• Lead time is 3 – 4 months for imported materials i.e.
mostly production supplies / raw materials, 30 – 45 daysfor local items
Inventory Management
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• 1000 – 1500 general items are termed as store items
and re-ordered by inventory
• Corporate target is min 45 days inventory
• Materials are inspected on delivery from vendor. In
case of quality rejection, returned to local market; for
international suppliers, rebate is collected and items aresold out in local market
• In case of undesirable delay for consumption of
material and high probability of expiry, it is also
auctioned in local markets
• GIR (Good Issuance Recognition) and GRN (Goods
Receipt Note) are implemented to for timely
acknowledgement of issuance and receiving
• Inventory is kept at desired conditions of temperature
and humidity to ensure safe storage.
Inventory Management
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• Fork Lifter are used for movement of inventory
• Total raw materials inventory is about 1200 – 1300 millionRs.
Inventory Management
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Chemical Store
at Packages
Limited
SERVICE AFTER THE SALE• Customer Services Department (CSD) follows new orders
from pre-press up to final delivery to make sure product
exceeds customer expectations.
• CSD arranges development activities and providescomprehensive technical and after-sales support to
customers.
• Customer complaints are followed by proper feedback
and management reporting that is why customers are
given due attention and the essential quick response all
the time.
• To strengthen the supply chain, Vendor Managed
Inventory (VMI) facility is provided to key customers.
• Stocks are maintained and delivers on short notice
according to customer requirements.
Customer Satisfaction
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PRE-PRESS (ART AND DESIGN)• The department makes designs for all types
of packaging (cartons, flexible packaging
and corrugated containers).
• A team of dedicated artists first creates theartwork, which is then transferred to the
cylinder and plate-making department.
• The Art and Design department has been
completely revolutionized over the last 15
years: output from design is digitally
transferred to plates and cylinders so that
there is no loss in data.
• A unique color management system ensuresthe accuracy the designs as they will appear
on the finished product.35
Customer Satisfaction
RESEARCH & DEVELOPMENT• Company constantly explores and develop usage of new
fibers, films, chemicals, adhesives, coatings and resins.
• With well-equipped laboratories and research resources
at their disposal, it has been a happening place in thearea of research.
• Research and Development (R & D) department is
committed to develops new products that service
changing consumer needs, while evaluating and
improving raw materials to reduce costs and increase
efficiency.
• Laboratory simulation of papermaking operations,
chemical testing and analysis, comprehensive testing of
paperboard and its products and other research and
development facilities are provided.36
Customer Satisfaction
ENVIRONMENT, HEALTH AND SAFETY (EH&S) POLICY
Packages Limited through it decisions constantly tries to :
• Minimize its environmental impact, as is economically
and practically possible
• Save raw materials including energy and water, avoidwaste
• Ensure that all its present and future activities are
conducted safely, without endangering the health of its
employees, its customers and the public
Environmental Policy
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ENVIRONMENT, HEALTH AND SAFETY (EH&S) POLICY
• Develop plans and procedures and provide resources to
successfully implement this policy and for dealing
effectively with any emergency
• Provide environmental, health and safety training to all
employees and other relevant persons to enable themto carry out their duties safely without causing harm to
themselves, to other individuals and to environment
• Ensure that all its activities comply with national
environmental, health and safety regulations
• This policy shall be reviewed as and when required for
betterment of the same.
Environmental Policy
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PAPER RECYCLING
• Packages has the capability of producing 100%
recycled paper.
• Various grades of paper and board (shipping, cartons,newsprint, magazines, imported waste paper) are
collected and then shredded.
• This is fed to a huge mixer where a controlled
percentage of virgin pulp and used paper are mixed
together to produce material for recycled paper.
Environmental Policy
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Effluent And Waste Management
• Discharged water from the paper and board mill goes to
a septic tank where heavy, insoluble material settles
down and is constantly scooped out.
• Specialized cleaning equipment removes the residual
sludge and suspended particles. The suspended solids
are separated and treated on sludge de-watering
equipment and thickened for disposal.
Environmental Policy
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Effluent And Waste Management
• The introduction of the new method of using wheat straw
as a raw material was a bold step partly aimed at
reducing the chemical load of the effluent.
• An even bolder step was taken with the import of
Chemical Recovery Plant in 1997.
• Black liquor, which poses severe difficulties in the effluent
treatment system in any pulp mill, is concentrated in this
plant to 58% solids and then incinerated in a waste heat
boiler, where organic impurities are destroyed and the
steam generated is utilized for evaporating the incoming
liquor.
• The ash, containing inorganic compounds, is dissolved in
water to recover any available chemicals.
Environmental Policy
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WATER MANAGEMENT
• This is a recent part of the green policy adopted by
Packages. It includes reduction of the usage of water in
all stages of its processes. Better water management hasled to better utilization of water and other raw inputs.
• At 300 tonnes per tonne of pulp produced, the quantity
of water itself poses serious problems of extraction and
disposal.
• To reduce it, a dissolved air flocculation system and
special filters have been added to different streams of
reusable water and wherever possible, fresh water in
various processes has gradually been replaced with this
water.
Environmental Policy
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INDEPENDENT ENERGY HOUSE
• Packages is self-sufficient in its power generation
capabilities with an installed capacity of 26 MW. A local
boiler meets the company's steam demands.
Environmental Policy
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RESULTS
• These efforts were streamlined in 1997 through the
formation of a committee of internal experts to look
regularly into issues concerning environment, health andsafety.
• The committee is currently involved in the management
of fresh water use, effluent management, control on air
emissions, energy conservation and maintenance of
health and safety standards in the company.
• It uses guidelines provided by the National Environment
Quality Standards (NEQS) as a benchmark, even
modifying processes to conform to its objectives.
Environmental Policy
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RESULTS
• As a result of combined efforts, the quantity of water
used, as well as its BOD and COD has been reduced
significantly.
• Steam consumption and heat energy consumption in
2003 have both shown a reduction of over 16% each
compared to 1999. The electricity use in the same period
has gone down by an impressive 25%.
• These activities have acquired such importance for the
company that out of US$ 100 million spent on new
processes and technology in the last few years, 20%
were spent on environmental issues alone.
Environmental Policy
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Before we end,A very special thanks to
Mr. Muhammad AkramManager Industrial Relations
Hassan AsifManager Quality Assurance
Shahzad MurtazaIn charge Stores and Inventory Department
Saliha AkramNUST Institute of Environmental Science and Engineering (IESE)
Prof. Dr. Nawar KhanNUST College of Electrical and Mechanical Engineering (EME)
and not to be forgotten 46
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