introduction to textile industry waqas
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INTRODUCTION TO TEXTILE INDUSTRY
Everyone in the world knows Pakistan as an agricultural country. Among all others,
cotton is the major crop. This cotton, after processing takes various forms including yarn,fabric and other textile related products. The industry that is engaged in this area is much
diversified in nature. There was a need of central platform that can assure a liaison
between all the sectors of this industry. To cater the same need, All Pakistan Textile Mills
Association (APTMA) was established in 1959. It was an untiring effort of its founders
that resulted in a success and APTMA became a real representative of the whole textile
sector of the country. Presently there are 419 registered members comprising of 322
spinning units,44 weaving units and 53 composite units. APTMA is the most important
and resourceful association of the country. The textile industry contributes over 60
percent to Pakistan's exports, over 38 percent to employment and over 20 percent to value
added production by manufacturing.
Textile industry is the most important industry of Pakistan. It contributed 64% ($ 6.85
Billion approximate) of the total exports of Pakistan in 2003. It employed 38 % of the
total employed population of Pakistan. Textiles industry contributed almost 10.50 to total
Gross Domestic Product of Pakistan. 31% of the total investment relate of the textiles
industry. Government earns Rs.1.1 Billion form textiles industry in shape of taxes.
Knitting industry is one of the most growing industries in Pakistan. Knitwear’s are
exported to all parts of the world. USA is the largest buyer of knitwear’s from Pakistan.
India, Bangladesh, and some other countries are competitors of Pakistan in this industry.
But Knitwear exports of our country are increasing day by day. In 1996 exports of
knitwear were 50% more than 1990, which shows a growing sign of the industry.
Companies like Levi’s, Nike, Target, Dockers’s etc., are the major buyers of knitwear.
Now why they are buying from third world countries the reason is that here it cost them
less and they get the same quality. Thus if the cost factor can be controlled and quality
can be maintained in the coming years, we can increase our knitwear exports several
times and it can help to reduce our trade deficit. But Government should also help to
increase exports.
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Current Position & Future Prospects of the Textile Industry
From almost non-existence at the time of creation of Pakistan in 1947, the Textile
industry has grown into the largest and most significant economic sector of Pakistan. The
Textile Industry contributes over 60% to Pakistan's exports, over 38% to employment and
20% to Value-added production by manufacturing. This domination role of the Textile
Sector in the Economy of Pakistan, for better or worse will continue till such time that
other economic activities achieve significant growth and development. The Textile
Industry will continue to play an important role in economy of Pakistan for the following
reasons:
Pakistan is one of the four largest cotton growers in the world. Availability of large
quantity (around 10 million bales per annum) of reasonable quality is the basis of the
development and sustenance of the local Textile Industry.
Textile Industry is labor intensive. In Pakistan, the advantage of a large labor force with
one of the lowest wages in the world. Textile production will continue to grow in the
Developing Countries since the Developed Countries are giving it up in favor of more
technology oriented and value added economic activities.
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INTRODUCTION
CH. Nazir Ahamad established the Masood textile mills limited in 1984 after them now
Ch. Shahid nazir is the chief executive of Masood textile mills limited. The Masood
textile mill is established under the company ordinance 1984. The Masood textile Mills
is listed in KSE in 1999.
The company has latest equipment and machinery to serve globally. Masood Textile
Mills is the only textile mill in Pakistan with latest computerized Barcode System that
assures quality in every operation of production from spinning to packing.
The company has modern computerized networking system. All the Accounting and
finance relating work is carried out through computers. The company has capability infabric dyeing; ginning, spinning, knitting, laundry and apparel Manufacturing. The
Company's apparel division is producing high quality garments.
Main products of Masood are Yarn, Fabric, and garments.
They are leaders in creating, developing and manufacturing of knitted apparel products
right from basic to highly fashioned garments thus responding to emerging trends in the
industry. Some of its customers are Eagle, Hanes, Polo Jeans, JC Penny, and Champion.
The company implemented the quality system and had awarded ISO 9002 certificate.
Masood has the technology with expertise, products with knowledge and most
importantly the right mindset to achieve total customer satisfaction. The company adopts
standardized tests for quality assurance purpose. The company is exporting its products
to U.S.A, U.K. and Germany.
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HISTORY
Masood Textile Mills Limited was established in 1984 by Chaudary Nazir Ahmed. This
is located 32 km Sheikupura road Faisalabad with its apparel Division located in center of city producing quality garments. MTM is working from 1995 with 75 sewing machines.
In 1996 company management has made the plan to use his own production of yarn for
producing value added products because of the slump in international and local yarn
market. For implementation this plan company made heavy investment in 1997 for
modernization and expansion of production facilities towards value added operations. For
this purpose 6 dyeing machines were installed and further knitting dyeing and finishing
machinery was being imported. Building was also constructed to install more stitching
machines for producing value added products now in 2010 company has more than 1725
sewing machines. In 1998 company was earning 470 million rupees per annum which
was increasing day by day. In 2009 it increases and earning raise to 6120 million rupees
per annum. In starting they were using manual recording system of inventory, induction,
raw material, salaries and vice versa. Now MTM is the only textile in the Pakistan with
latest computerized bar code system, which assures quality in every operation from
spinning to packing; products of each dept carry bar coded stickers which bear all the
details and history of the operation of that product. Hence if any problem accurse one
can trace back the root of the problem and enables to prevent the root cause of the
problems in future. Besides this, Masood is one of the few textile mills of Pakistan which
has in house Ginning, Spinning, Knitting, Fabric, Dyeing, Processing, Laundry and
Apparel Manufacturing facilities.
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Growth History
Largest Knitwear Exporting Company of the country for the Year 2003
Turn Over in Millions
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Current position
Largest Knitwear Exporting Company of the country for the Year 2005
Turn Over in Millions
COMPANY INFORMATION
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CHAIRMAN/CHIEF EXECUTIV OFFICER : MR. SHAHID NAZIR
DIRECTORS : CH. MUHAMMAD AMIN
: CH. MUNIR AHMAD
: MR. FAZAL ELAHI
: MR. NASEER AHMAD SHAH
: MR. MUHAMMAD ARSHAD
: MR. MUAMMAD NAWAZ
(Nominee-NIT)
DIRECTOR FINANCE : MR. MUHAMMAD FAROOQ
CHIEF FINANCIAL OFFICER : MR. BINYAMIN
COMPANY SECRETARY : MR. ABDUL BARI HAQQANI
AUDITORS : Hameed Khan & Company(Chartered Accounts)
BANKERS : HABIB BANK LIMITEDMUSLIM COMMERCIAL BANK
REGIATERED OFFICE UNIVERSAL HOUSE, WESTCANAL ROAD, FAROOQABAD,FAISALABAD.
MILLS : 32-K.M SHEIKUPURA ROAD,FAISALABAD
CUSTOMER ’S PROFILE
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Masood is proud to work with the world’s best labels. This exposure to the brand labels
has been a continuous learning experience for the entire team. Currently, 85% of
production is exported to the U.S. while rest 15% to Europe.
Main customer's range of Masood Textile is….
1) JC Penny
2) Polo Ralph Lauren
3) Champion
4) Speedo
5) Hanes
6) Nautica
7) Integrity
8) Duck Head
9) Sara Lee
10)Vantage
11)Tommy Hilfiger
12)Levi Strauss
13)Dockers
14)St. Johns Bay
PRODUCTS OFFERED BY THE MTM
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Products of Masood Textile Mills Ltd. Are cotton/synthetic, fiber, knitted/dyed fabrics
and garments (Tops & Bottom). All the products are exported to USA, Germany, and
various other countries. Major portion of yarn is used in manufacturing process and
surplus is exported.
Yarn
Yarn is classified in two parts.
1. Cotton yarn
2. Poly cotton yarn/mix yarn
Fabric
This is also divided into two types:
1. Gray-Fabric
2. Other fabric
i. Bleached Fabric
ii. Printed Fabric
All fabric is knitted in tabular form but now the company is converting tabular form into
open width to control the wastage of fabric.
Garments
• Long Wear
• Active Wear
• Sleep Wear
• Athletic
• Sports Wear
• Under Wear
MTM has categorized these products in two main categories which are known as
1- Tops
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2- Bottoms
TOPS
• High Neck
• Mock Neck
• Polo Shirt
• T-Shirt
• V-Neck
• V-insert
• Raglon Shirt
•
Rugby Shirt• Hood Shirt
• Fill Zipper Hood Shirt
• Quarter Zipper Hood Shirt
• Mussel tee
• Tank Top
BOTTOMS
• Pant
• Short
• Boxer
• Boxer Brief
• Boxer Short
•
Mid Rise
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Our Vision
"Our vision is of continual improvement and sustained growth, and of a family of
workers. Who are 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 - its human capital. MTM continues to provide training courses
and self-enhancement opportunities for all our workers''
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Mission Statement
“To be the World’s best apparel company”
Objectives:
Objectives of Masood Textile are….
•
To provide market leadership and brand coverage• To pursue technological innovation
• To reduce the cost of production
• To satisfy the customer
• To continue to surpass the past achievements
• To protect the environment according to ISO 14000
• To get growth through Professional managers.
• To partner with operators for their maximum productivity
• To provide virtuous to our customers, employees, communities, and the
environment
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Our Values
Respect for the individual, integrity, speed, simplicity, self-assuredness, and a 100%
commitment, our values are non-negotiable; they are never to be jettisoned.
For us, our values are our well-spring.
• To provide market leadership and brand coverage
• To pursue technological innovation
• To partner with operators for their maximum productivity
• To provide virtuous to our customers, employees, communities, and the
environment
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COMPANY INFRASTRUCTURE
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MTM Operations Divisions
Masood is one of the few fully vertical textile mills in Pakistan having in-house Yarn,
Knitting, Fabric dyeing, Processing, and Laundry and Apparel Manufacturing facilities.
The vertically integrated operations are helpful in achieving shorter lead times and
greater flexibility to cater to the customers’ demand
The detail of vertical operations of Masood is as follows:
1. Spinning
2. Knitting
3. Dyeing, Processing & Laundry4. Apparel
1. Spinning
Masood has invested in growing and ginning of cotton. With the help of ginning process,
Masood procure the raw cotton for the whole year. This helps Masood to provide the
consistent quality products for customers through out the year. Spinning Division of
Masood Textiles is capable of producing 25,000 lbs. of carded and 10,000 lbs. of combed
Ring spun yarn every day (based on 20/s count). The division, equipped with most
modern machinery from Japan, England and Switzerland, produces a vast range of yarn
counts from 10/s to 40/s. To ensure consistent quality, spinning laboratory has been
equipped with latest and most modern testing equipment. 60% of yarn production is
exported to Hong Kong, Japan, Korea, Malaysia and Thailand. The rest of capacity is
used for in house production of fabric, converted subsequently into apparel.
Spinning function is performed through following steps:
1. Mixing
2. Blow room
3. Drawing
4. Combing
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1. Mixing
Maximum numbers of lots are mixed to get uniform results. Masood is using Sandwich
mixing technique for stocking, which is a conventional method.
2. Blow room
Masood have a single line Toyoda O'Hara Hergeth Blow Room in operation.
3. Drawing
Combined machinery setup of TOYODA and latest model of RIETER is at function in
Masood premises.
4. Combing
Lap formers of Toyoda Sk-4 and eight combers of Toyoda CM-10 are in operation at
Masood. Strict quality and maintenance checks are followed at Top comb and cylinder
for proven quality product
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2. Knitting
To produce knitted fabric of supreme quality, it is impetrative that superior quality raw
material is procured at competitive prices. At Masood finest quality yarn in the market is
produced for our in house knitting.
Fleece machine
They have a Fleece machines for fleece fabrics with additional capability to produce
heavy single jersey fabric as well. A variety of fabric such as plain, cross, sueded,
textured fleece can be produced at versatile facility. They have "Vanguard supreme"
Machines to knit body size fleece fabric and "Mayer & Cie" machines for open width
fleece fabric..
Rib machines
Another unit is for main Rib fabric while a few 8-locks machines are capable of
manufacturing mini thermal and waffle. Additionally, they also have machines for Neck
size ribs that help them producing consistent ribs for necks.
Single jersey machines
Single knit fabric is knitted on four track machines. These machines can produce fabric
such as single jersey, P.Q, mesh, drop needle jersey, bird eye jersey etc. Masood also has
Lycra attachment equipment for best fabric stretch recovery.
Inter lock machines
Drop needle and feeder stripe fabric are mostly produced on inter lock machines which
have the capability to produce rib fabrics in addition to Interlock fabrics.
Flat knitting machines
Considering the importance of fabric accessories such as Collars, Cuffs, Waist band,
Trims, Masood have a vast number of Matsuya flat knitting machines.
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3. Processing
The Fabric Processing Division of Masood Textiles has a capacity of dyeing 41,450 kgs
per day. It is capable of dyeing both 100% cotton and blended fabric. The machine size
selection gives the flexibility in dyeing a lot size ranging from 100 kgs to 1,000 kgs. The
department has two Santex finishing lines from Switzerland.
Dyeing, Processing & Laundry They have dyeing machines for dyeing cotton fabric and a fully computerized high
temperature jet-dyeing machine to dye all kinds of synthetic fabrics including polyester.
A well equipped laboratory ensures all dyed fabric is properly checked, as per buyer's
requirements, for factors such as shrinkage, color Finishing department at Masood, comprises of automatic hydro-extractors for the
removal of moisture from dyed fabric, computerized tensionless dryers for instant fabric
drying, soft-setting and calendaring machines for systematic soft-setting and rolling of
fabric, fully computerized compaction machines for complete shrinkage control, and
panel wash machines and tumble dryers for panel washing the fabric to give minimum
shrinkage value.
4. Apparel
Masood believe that prevention is better than cure. During the process of stitching they
have inline inspection and final inspection processes. Their objective is to produce with
Zero Defects.
The BACK TRACKING SYSTEM plays a vital role in developing sense of responsibility
and accountability in every person in making and inspecting the garments. The company
has independent Quality Assurance Team that conducts inline audits and final finished
goods audits. The QA Manager ensures that before the goods leave the factory, they
comply with the customer 's AQL standard.
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CUTTING
5 cutting units working under the supervision of skilled unit managers, these cutting units
are well equipped with latest machinery including Gerber Plotter, Spreader etc.
STITCHING
With over 1,749 stitching machines, manned with the most skilled and expert operators,
Masood is capable of producing about 120,000 dozens per month versatile garments
ranging from basic to high fashion, men's, women's and kids with maximum flexibility in
size and color assortments. The Quality control and Quality Assurance departments are in
place to make sure the company's objective of zero defects. Computerized Bar coding and
Back Track systems provide Masood 100% predictability and tracking performance.
EMBROIDERY
Latest Tajima embroidery machines, fully automated, 6 color 40 heads provide Masood
the flexibility and capability to cater to the customer requirements.
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Management Hierarchy
CEO
GM
Senior Managers
Managers
Deputy Managers
Assistant Managers
Sr. Officers/ Unit
Managers
Management
Trainees/Sr. Supervisors
MarketingManager
MerchandisingManager
HR. Manager
PPC Manager
ProductionManager
Q.A. Manager
FinanceManager
InventoryManager
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Departments of MTM:
A Masood textile mill is divided in to following departments.
1. Production Planning & Control Department.
2. Merchandizing Department.
3. Fabric Receiving Department.
4. Induction Department.
5. Stitching Department.
6. Quality Assurance Department.
7. Human Resource
8. Administration Department.
9. Information Technology Department.
10. Import department
11. Export department
12. Finance Department.
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Production Planning and Control (PPC) Dept Chart
Production Manager
DPM
Assistant Managers
Unit Managers
Management Trainee
Cutting/Induction Stitching
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Production Planning and Control (PPC)
PPC department plays an indispensable role in any garment manufacturing
company. Its responsibilities start from the negotiation between merchandiser and
customer and ends on the shipment of PO. This department works on the basis of
3M's (Man, Machinery, and Material). It combines these three to get best result.
Responsibilities of PPC
The responsibilities of PPC are as follows:
1. Costing
2. Production Capacities
3. Production Allocation
4. Monitoring According to Time Line
5. Control
6. Re-Planning
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1. Costing
This is the first and most important responsibility assigned to PPC. It is responsible for
accurate costing of the production. The price of a single accessory can't be ignored. On
the bases of cost, given by PPC, merchandiser negotiates with the customer. This is the
crucial point in getting the purchase order (PO). The main things that are taken into
account during costing and pricing of product are as follows,
• Fabric Cost (Yarn, Dyeing, and Knitting)
• Stitching Cost
• Packing and Accessory Cost
•
Overhead Financial Charges• Margin and Rejection
Freight on Board Prices (Here by freight on board prices we mean prices that include the
cost of sending product on the ship or airplane)
Costing Method
Costing is done on three bases.
• Approximation.
• Judgment
• Calculation
During costing PPC has to take care that there will be no variation in cost during
production.
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2. Production Capacities
It is the second responsibility of PPC to check the production capacities of Masood. Here
by production capacity we mean two things firstly Capability. It means that the labor and
machines at Masood are able or not to prepare the garment that customer requires.
Secondly On Time Delivery. It means that we will handover the shipment as per
contract. For this purpose PPC has to check these things: Fabric Production Capacity,
Cutting and Stitch time, Vacant Labor and Machines for Processing the Order
PPC has to provide these information's to the merchandiser so that he can negotiate with
customer.
3. Production Allocation
PPC fulfill this responsibility by making a schedule, which deals with when and from
where fabric is received, when cutting is done, to which production unit order will be
process, and so on.
4. Monitoring According to Time Line & Control
All the processes being carried out are monitored according to preplanned timeline.Masood's AMS help PPC to monitor all the processes. in order to meet any uncertain
situation safety margins are kept. PPC not only monitor all the processes but also control
the pace of process in order to send shipment on time.
5. Re-Planning
If any uncertain situation occurs, it is responsibility of PPC to re-plan in such a manner
that it doesn’t affect the shipment schedule. These uncertainty may arise due to fabricshortage, fault in any main machine etc.
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PPC Profile
A PPC profile is prepared which contains all the specification that has been demanded by
customer and then is distributed to all the concerned departments in which the whole
execution of the order is done. Following points are included in this profile.
1. Purchase Order and Style Number
2. Buyer Name
3. Description
4. Quantity
5. Color and Size Breakdown
6. Time Line
7. Cutting Program
8. Size Chart and Cutting Design
9. Packing Program
10. Accessory Sheet
11. Fabric Order Confirmation Sheets
12. Action Calendar
For better understanding a sample profile is attached in the appendix.
Working
In apparel flow of work of stitching unit starts from issue lot from induction department
and start stitching process. The workers in this department are on contractual basis as
well salaried ones. Each unit normally works on the different brand and for the different
customers.
Chain flow technique is used in stitching units. Every worker performs a single function
on all pieces and forwards it to next worker for further function. Until the piece is
complete.
After stitching the clipping function is done on the garments. All extra threads are
removed in this function. After it the garments are pressed. Steam is used for this
purpose.
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After pressing the garments are forward for audit. In stitching unit following machines
are used for garments making.
1. Flat Lock Machine.
2. Over Lock Machine
3. Lock Stick Machine
4. 2 NCS Machine.
5. Zig. Zag Machine.
6. Bar Taking Machine.
7. B/Sewing Machine
8. Snap Machine.
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Merchandising / Marketing Department chart
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Merchandising Manager
Sr. Merchandiser
Merchandiser
Assistant Merchandiser
Management Trainee
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Merchandising / Marketing Department
In MTM marketing departments is very active. As MTM is a marketing oriented
company so this department has to play a vital role in company. Basic objective of merchandising department is to take orders from existing customers and to attract new
customers. And to satisfy the customers by quality products and timely deliveries.
Working
Following works are performed by this department
.merchandising department by dividing it into seven steps, which are as follows:
1. Handling Inquiry.
2. Product Development Package.
3. Price Negotiation.
4. Sampling.
5. Fabric Development.
6. Pre Production Approvals.
7. Bulk Production Monitoring and Follow up.
1. Handling Inquiry
There are basically two types of customers, one are new, and others belong to portfolio of
existing customers. It is the duty of merchandising department to tell the new customers
what Masood is capable of and what it is producing.
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2. Product Development Package
Both the existing and new customers send product package. This product development
package contains:
a. Merchandising Specs.
b. Measurement Specs.
c. Color Standards.
d. Fabric Swatches.
e. Accessory Chart.
f. Stitching and Packing Detail.
g. Garment sketches.
After receiving product development package merchandising department take initiatives
to prepare samples.
3. Price Negotiation
They put the price with the submission of “Proto Type Sample” to the prospective
customer. This price is negotiable. PPC Department calculates the exact costs associated
with the production and thus enable merchandiser to determine what price should be
charge. Price is determined on two bases. Either it is customer based or it is product
based. Customer based pricing is done by keeping in view the market position of
customer. The factors which, they take into consideration are brand popularity and the
income level of ultimate buyer. Product based pricing is done according to the
specifications of the product. Usually a fixed amount of margin is kept here. But to attract
a new one or to retain an existing customer they can even charge him a price equal to
cost.
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4. Sampling
After receiving the product package development Merchandiser prepares the proto
sample. These samples may be send in any fabric and sends it to customer for approval.
Lead-time of proto sample is 3 to 4 days. After proto type sample They sent the “Color
Stack Sample”. This sample shows department understanding about the fabric. This
sample includes all the required color. When prospective customer really takes interest in
our product then he demands “ADAR (Apparel Design for Apparel Review) Sample”.
These samples are kept as reference and use to compare it with final products. At this
stage order is considered to be achieved but “Order Confirmation Sheet” is received from
customer after we response positively to volume of production and the time frame given
by customer in “Bi-Sheet”. After receiving order confirmation sheet, we start our preparation to produce in bulk quantity. PPC has prepared a complete time schedule of all
activities
5. Fabric Development
When merchandising department receive product package development it will send S/O
(Sample Order) to mills. If the required fabric is not available in the fabric library then
Research & Development Department of mills start working on that fabric. If it is presentin fabric library then the dates on which required machines are available, production
starts.
6. Pre Production Approvals
Pre-Production samples sent to the customers for “RTL Testing”. This sample reflects the
true picture of bulk production. When these samples are approved from customer then
they start production at full scale.
7. Bulk Production and Follow up
The responsibility of merchandiser doesn’t end at this stage; he has to continuously
follow the process. Some time customer’s representative checks production to assure that
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every thing is as per plan or not. Most tough time for merchandiser is when Auditor
audits the shipment.
When shipment is passed by customer’s auditor then Export Department has to send this
shipment to customer. When customer received this shipment then the responsibilities of
merchandiser comes to an end.
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Stores
In apparel division of Masood textile there are three types of store
1. Fabric store
2. Main store
3. Shipment store
1. Fabric store
As it is evident from the name, that fabric received from Masood spinning and knitting
mills, is stored here. The fabric is received in form of lots. The (out) gate pass issues to
this fabric, when it exits from mills, serves as (in) gate pass in the apparel division. This
gate pass has detail like lot number, weight, yarn count, number of rolls, color and order
number for which the fabric will be used. After unloading, fabric is brought in the fabric
store. Fabric store is a big hall with several three stories shelves. Each shelf has a
number, customer name are also assigned if it is stored for a specific order .
2. Job Card Filling
After entering the store, fabric is weighted and a job card is filled. This job card contains
all necessary information about fabric such as purchase order number, fabric quality,
garment description, received dates, shelf numbers in which it will be stored before
production. This job card helps in noting the process going on the lot of fabric .
3. Main Store
Here they store accessories used in production (e.g thread, twill tape, buttons etc.),
administrational accessories (stationary, kitchen stock etc.) and accessories relating to
transport vehicles. Simply we can say every thing except fabric is stored here.
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4. Shipment store
As it is evident from the name, purchase orders which are ready to be shipped, are storehere. In Masood, when production of order is completed then it is packed in boxes and
barcodes are pasted on them. These barcodes contain all necessary information regarding
the contents of boxes. Final quality check of the shipment is done here. On the day of
shipment the boxes are loaded on trucks and final entries are stored in computer.
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In duction department
Induction department works as an intermediary and coordinator between cutting and
production department.
Process Flow
Induction department receives the lot after complete check by quality assurance and
quality control in cutting department. Job cards are posted after completion of check.
They assign it a barcode issued by I.T department. They put the barcode number in the
fabric bundles and keep these bundles in racks.
Induction department maintains unit wise induction program on daily basis. This
induction program includes following things:
Unit No. P.O. No. Lot No. Issue Date Color Pieces
Remarks:
It also prepares Daily Induction Report. This includes:
Hall No. Time P.O. No. Lot No. Sizes Total Pieces
Unit Incharge and Supervisor sign this report.
These reports help in keeping record and facilitate the concerning departments.
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Production Department
There are total 16 stitching units. Orders of different companies are processed in different
units according to their skills. They operate under the objective of “Zero Defect”. Here,
quality control is merged with production. In line supervisor are responsible for
production of premium quality garments. A garment is packed after complete satisfaction
about its quality, both from quality control and quality assurance officials.
Process
This production process is as follows:
1. Stitching (process flow)
2. Ironing
3. Finishing checks
4. Packing accessory attachment
5. Packing
1. Stitching (process flow)
To get maximum production they follow the principle of “Division of Labor” and
principle of convenience. That’s why process flow is used for stitching. The copy of
process flow, which is attached in annexure, tells how a shirt is stitch (First moon over
lock, then moon attach, then pocket hem, then pocket marking and so on). Here they
attach the identification codes to the garments, which help in back track system. Quality,
which is one of the core competencies of Masood, is maintained by 100% check from
Inline supervisors. These Inline supervisors check the stitching and plucking, if there is
any fault they try to remove it immediately. If we see the process flow attached we will
find four inspections, at first inspection there is 100% check, at second there is 62%
check, at third there is 64% check and at last which is inter inspection there is 34% check.
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2. Ironing
When stitching is complete these garments are ironed. This process is of great care
because this may damage the fabric. This is done with the help of steam irons. Inline
supervisors work doesn’t end at stitching. They have to check any possible damage and
the quality of ironing.
3. Finishing Check
After ironing finishing check is made. This includes three kinds of checks.
a. Stain
If there are any stains on garment and they are removable then they are washed with
steam and chemicals.
b. Raffu
If there is any small hole then that garment is sent for raffu.
c. Re Stitch
If there is any skip stitch then that garment is sent for Re Stitch.
4. Packing Accessory Attachment
After final check packing accessories like company stickers, hang tags are attached.
5. Packing
Quality is preferred in all steps of Masood’s working after stitching the garments, are
forward for packing. No of laborer and inline inspector involve in this process for the
proper packing of order according to the requirement of the customer.
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QUALITY ASSURANCE DEPARTMENT
Quality Assurance Manager
Deputy Manager QA
Assistant Manager QA
Quality Assurance Officer
QA Auditors
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QUALITY ASSURANCE DEPARTMENT
The main objective of the quality assurance departments is to ensure the quality of
finished products according to the customer’s specification.
Role of Quality Assurance
Quality assurance department’s first responsibility is to check the quality of finished
products. For this purpose quality audit is conducted. In which the finished garments are
checked according to customers P.O. Fabric. Quality, Color, Sizes, Accessories,
Embroidery, Stitching Quality every thing is checked by Quality Assurance Department.
If every thing is OK then the shipment is approval otherwise it is rejected. Because
quality policy of MTM is to satisfy customer at every cost.
While auditing finished goods Q.A Officer also checks the measurements of the garments
and tallies them with standard measurements for the respective sizes. In final inspection
the officer have a standard fault form. He checks the garment and fined faults. If the fault
ratio is more then 2.5% he rejected the piece.
In that form description of faults are mentioned. Q.A department ensures that 100 %
quality is maintained. Beside quality audit Quality Assurance department evaluate the performance for the In-line inspectors and final inspectors. On these evaluations their
pays and bonuses are allocated. The department also gives cash awards to best
performers. And a quality trophy is also given to best unit.
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HR Department
Human Resource Manager
Sr. Human Resource Officer
Human Recourse Executive
Management Trainee
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Human Resource Department
The human resource is very strong in Masood. Like any other human resource
department, the objective of this department is to maximize the efficiency and
satisfaction of employees. They adopt al those practices which can hrlp them in achieving
their goal
Functions of HR Department
Functions of the HR department in Masood Textile Mills can broadly be differentiated
into these points:
1. Recruitment
2. Training and Development
3. Compensation & Benefits
4. Motivation
1. Recruitment
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The HR department does the recruitment. Recruitment is done basically for two classes.
Class S is for labors and supervisory level while class M is for Management. For
recruitment in both classes Job Analysis is done that where new vacancies can be
arranged or where there occurs a vacancy for a job and what kind of qualified person is
required for the job. Human Resource Department does Strategic Planning for new jobs
in Masood. Jobs are normally announced after every six months. Selection is done in two
ways. Number one is that Internal Sourcing is done according to the capability and
performance of worker. External recruitment is done for the officers. For recruiting
officers they take test and interview, and the succeed ones are appointed as Management
Trainees. After a period of three months they are again evaluated the persons who
qualified become the permanent members of Masood’s Team. The workers are hired on
trial. If there work is satisfactory then they are selected.
HR department also keep the personnel record either the worker is a contractual or
permanent worker. A profile of every worker is maintained in the computer based
Human Resource Management System (HRMS).
2. Training and Development
Although it is the function of Human Resource Department but in Masood they haverecently establish a separate Training & Development Department. The responsibility of
this department is to train new employees and to develop a clear career path for the
employees. This department also arranges training for employees who are promoted to next
level. After providing complete training the work of this department doesn’t end. They take
feed back to evaluate the results of training.
3. Compensation and Benefits
The HR department carries out wage surveys. HR department checks pay and other legal
benefits and benefits like overtime, bonus, leave encashment, gratuity, subsidized mess
and vehicles are also under HR department.
4. Motivation and Performance Appraisal
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HR department makes the performance appraisal and is responsible of giving increments
or rewards to the workers. For creating motivation and competitive environment among
the workers certain incentives are given:
• Cash prizes
• Trophy
The best inline inspector receives a cash prize. To create a competition between workers
a trophy is given to the best stitching hall on the criteria selected by the management,
every month. O.35% of the P.O. is given to the best stitching hall. This 0.35% is
distributed among all the personnel, belonging to different departments, for their
contribution e.g respective merchandiser, PPC staff, Cutting persons etc.
ADMIN DEPARTMENT
Admin Manager
Transport OfficerHouse Keeper
Officer.
Chief Security
Officer
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Administration Department
The activities performed by this department include:
1. Control of the admin. office
2. Gate office
3. Transport
4. House keeping
5. Utilities6. Security
1. Gate office
This office is required to Gate office works under the administration department.
They are required to submit the reports of all goods going out of the factory or
which are received. The admin manager sings gate passes.
2. Transport
To control the facility of transport and maintenance of the transport of the
transport vehicles is controlled by the admin department.
3. House Keeping
To arrange the facility of accommodation for the employees is also done by the
administration department. The wear and tear of the factory building is also taken
care by the admin department.
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4. Utilities
The utilities such as kitchen budget, electricity, maintenance of automobiles and
the machines is also done by the administration department. Other responsibilities
are like the civil kind i.e. sanitary, boiler, and carpenter for the repair of the
furniture.
5. Security
Masood has a tight security system. There is an efficient security crew working in
the Masood Textile Mills. The security is in the control of the security in charge
who works under the admin manager. Security people check every employee
coming in and going out of the factory for safety reasons.
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I.T. Department Chart
EDP Manager
Deputy Managers
Assistant Managers
Data Processing
&
Data ManagerWEB/E-mail
Officers Web Developers
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Information Technology Department
Information Technology department of Masood Textile Mills provides it a strong edge on
its rivals. As an ordinary IT department in any organization its basic objective is to
collect, interpret and summarize the factory data in an easily understandable form, but the
way they manage makes them a core competence for Masood. Information Technology
department of Masood has four main parts, they are as follow:
1. Data Base Administration
2. Network Administration
3. E-Commerce
4. Web Development
1. Data Base Administration
The working of Information Technology at Masood can be explained easily under
following heads:
1. Information Technology application at Masood (H.R.M.S, G.M.S &A.M.S.)
2. LAN / WAN
3. E-Commerce / Website
4. Data Base Administration
1. Information Technology application at Masood
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The applications of IT at Masood can be explained by understanding the management
systems developed by IT Department. These management systems are as follows:
I. Human Resource Management System (HRMS)
II. Gate Management System (GMS)
III. Employee Payroll System
IV. Apparel Management System (AMS)
I. Human Resource Management System H.R.M.SHuman resource management system which contains the data of all the personal. This is
available for the upper management for taking numerous decisions.
• Employees Evaluation Form
• Evaluation History of the Employees
• Complaints against Employees.
• Department Wise Strength of Employees & Budget.
•
Month Wise Employees Turnover.• Reports about Employees.
II. Gate Management System
Gate Management System is a program, which deals with the function of gate office. In
this system following functions are performs.
• Employees In/out record and time.
• Visitors In/out record and time.
• Candidate Employees In/Out record and time.
• Temporary Employees In/out record and time.
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Every employee of MTM has a card. Which he or she scans while In/Out. Its time is
noted.There are certain reports about In/Out system preserve in GMS and are available
for higher management.
III. Employee Payroll System
Employee’s payroll system is design to generate employee’s salaries and benefit in
computerized system this system performs on following ground.
• Generation of Employees Salary.
• Generation of Pay Slips.
• Salary History Employee.
• Gratuity Record.
• Leave Encashment Record.
This system makes easy the payment procedure and reduces corruption and increase
efficiency.
IV. Apparel Management System
This is very dynamic effort made by the IT department of MTM. They are maintaining
the record of piece made by MTM up till now; every garment manufactured at MTM has
a barcode no. Which is feed in AMS? And whenever is needed this no is fed and
complete history of that garments is open.AMS works on following grounds.
• Complete backtrack of garment.
• On line status of a customer’s P.O.
• Worker Evaluation.
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• In line Inspectors and Final Inspectors Evaluation.
• Contractual Employees Wages Calculation and Financial Summary.
• Error Tractability in finished products.
•
Reduction in fabric loses.• Reduce duplication of work.
• Paperless environment.
• System Security.
• Unique ID tracking No. of each garments.
Back tracks from cotton crop type, yarn, knitting, fabric processing, cutting, stitching,
inspection, packing and shipment.
3. Local Area Network/Wide Area Network
I. LAN
Masood Textile’s Apparel Division has about 180 computers. These computers are
interlinked via local area network. This network provides fast moving of required data
and also facilitates Intranet facility within the company. All employees within the
organization can easily communicate through it MTM has a hub, which provides LAN
facility according to requirements of the system.
II. WAN
Masood Textile Mills (Apparel Division) is linked Masood Textile Mills (Fabric
Division) which is 32 Km far from it. All computers of Apparel Division are linked to
Fabric Division through a communication Tower. This system works like mobile phone
system. Beside that MTM has its on ISP (Internet Service Providing facility). It hassatellite Internet system. For this a satellite dish is installed at the factory. Every
employee of MTM has free Internet facility.
3. E-Commerce
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Masood Textile is working as a “B to B” company. It uses Internet for its negotiations
and transactions with its customer. For on line transactions MTM use “EC Vision X-
expression” it is a software use for commerce. MTM negotiates all terms and conditions
of product, size, color, P.O., item and transportation details through on-line. It also sends
a copy of L.C. online and it use EDI electronic data interchange for it. Beside that MTM
advertises its facilities of production, its customer portfolio and its achievements on-line.
Recently MTM wins the best supplier award 2001-2002 from “J.C Penny” Company
used different passwords for different customers to secure their identity.
4. Web Site
MTM has its web site named www.masoodtextilemills.com this web site contains
complete history, profile, production facilities, workforce strength, job opportunities and
customer order status of the company.
www.masoodtextile.com is updated daily and latest company news is also shown on it.
Recently Masood Textile launches its own e-mail services names “…..
@masoodtextilemills.com”. This facility is developed, managed and controlled through
MTM’s own IT Team. This facility is available for all the employees of MTM.
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IMPORT DEPARTMENT
It imports two kinds of things:• Sundries
• Dyes and chemical
I. SUNDRIES
It includes the material whichis used in production, as a minor part of the garments it
includes:
• Buttons
• Labels
• V.M.T. -----> vender mark ticket
• Plastic pins
• Silver hand pins
These sundries are imported time by time and according to the demand forwarded bymerchandiser. Usually the suppliers are nominated by the foreign buyers. So the import
department forwards a purchase order about its required product. Then the suppliers send
the Performa invoices in which prices are shown. Terms and conditions of transactions
are set. The suppliers also seek for the approval of the Performa invoice. Then the import
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department panels its L/C to supplier through banks and shipment is sailed. Sundries are
usually shipped by courier service because this is speedy way.
II. DYES AND CHEMICAL
Import department also imports the dyes and chemicals on regular basis. These dyes stuff
are usually imported from India and China. In this case company contracts the indenters.
He arranges the invoice per forma. If company agrees on invoice per forma, indenter
opens L/C through bank. They import it usually by air instead of by sea, to avoid the
botheration of inland transportation between Karachi and Faisalabad. The company has
good strategy as regard to import dyes stuff. It imports every month about 10,000 Kg of
dyes stuff and keep in reserve 1,000 Kg. of dyes to cover the period of consignment in
transit.
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EXPORT DEPARTMENT
The main objective of export department of Masood Textile is to facilitate the export
process of the garments through negotiation with the banks and export promotion bureau.
Function performs by export department are following:-
• Export department negotiates with the banks for opening letter of credit.
• Export department deals with the preparation of bill of exchange.
• Export Department Deals with Shipping Company for Shipment Handling.
• Export department deals with shipment agents for transportation till Karachi.
• Export departments deal with negotiating banks, State Bank of Pakistan and
Pakistan Custom for export procedures.
• Export department deals with EPB for quota matters.
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Finance Department
Finance Manager
Deputy Managers
Assistant Managers
Accounts Finance
Accounts Officer
Sales Tax
Officer
Finance
Officer
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Finance Department
Minimum input that give maximum out is the desire of this particular department. For
this purpose financial analyst works over the opportunities in such a way that they get the
main focused work (wealth maximization).
MTM’s financial administration is very strict in giving information. Company rules are
very strict for it. Following are the main functions of finance department.
Financial Management
It deals with the cash inflows and outflows major cash inflows are following.
• Sales Collection
• Interest of Deposits
• Sales of Wastes
• Capital Gains
• Major sources of cash outflow are:-
• Purchase of raw materials.
• Purchase of packing materials.
• Purchase of fuels.
• Wages, Salaries & Payments.
• Duties and Taxes.
• Major Banks of MTM are following.
• Habib Bank Ltd. (HBL)
• Muslim Commercial Bank Ltd. (MCB)
The company invests its surplus money in investment banks, stocks and it gives short-
term loans to employees.
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Book Keeping
MTM has separate accounts division for book keeping. The main function of book
keeping is to record the business transaction in a set of books of accounts.
Daily Payments and receipts entries are recorded in original book of entries.
Subsidiary ledgers are used to maintain debit and credit account.
Main ledger is prepared for daily journal entries and monthly trial balance is drawn
through it. At the end of the year annual accounts have been prepared.
Pay Roll
In this section attendance record is maintained EPS (Employees Payroll System) prepare
the pay according to company rules.
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Work Done By Me
Week 1
In Apparel unit of the Masood Textile Mills HR department is divided into 2 heads.
Firstly is the HR “M” level and second is the HR “S” level. M level means the
management level and S level means the supervisory level. Firstly I join the HR M level
and in that department Deputy Secretary Ms. Humaira deals me.
Here I observed that the main objective of this department is to maximize the efficiency
and satisfaction of employees.
In HR M level ranking of the managers starts from M6 to M1.
Senior Manager M1
Manager M2
Deputy Manager M3
Asst. Mgr M4
Sr. Officer M5
Mgmt. Trainee M6
Recruitments of the employees start from the M6 level as a management trainee officer
(MTO). After 6 months MTO following the carrier path promote in to Sr. officer and
after 3 years Asst. Manager and vice versa.Salary Package of MTO is start from 16000 and after probationary period it increases to
Rs.20000 and the salary package of the Asst. Manager is the Rs.30000 and vice versa.
After M level I join the HR S level and in that department I met the Head of Department
Mr. Naeem. In HR S level deals with non managerial employees. HR S level deals with
the employee’s recruitments, salaries, leaves, bonuses, dismissing, and vice versa.
In HR S level ranking of the employees starts from S4 to S1.
Supervisor S1
In Line Inspector S2
Worker S3
Helper S4
Worker work on the bases of the per piece and the supervisor work on the salary and the
salary of the S level start from 7000.
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Functions of HR Department
Functions of the HR department in Masood Textile Mills “S” and “M” level are:
• Recruitment
• Training and Development
• Compensation & Benefits
• Motivation
Recruitment
The HR department does the recruitment. Recruitment is done basically for two classes.
Class S is for labors and supervisory level while class M is for Management. Recruitment
is being made in both classes after Job Analysis where new vacancies can be arranged or
where there occurs a vacancy for a job and what kind of qualified person is required for
the job. Human Resource Department does Strategic Planning for new jobs in Masood.
Jobs are normally announced after every six months. Selection is done in two ways. First
one is that Internal Sourcing is done according to the capability and performance of
worker. External recruitment is done for the officers. For recruiting officers they take test
and interview, and the succeed ones are appointed as Management Trainees. After a
period of three months they are again evaluated the persons who qualified become the
permanent members of Masood’s Team. The workers are hired on trial. If there work is
satisfactory then they are selected.
HR department also keep the personnel record either the worker is a contractual or
permanent worker. A profile of every worker is maintained in the computer based
Human Resource Management System (HRMS).
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Training and Development
They have established Training & Development DepartmentThe responsibility of this
department is to train new employees and to develop a clear career path for the
employees. This department also arranges training for employees who are promoted to
next level. After providing complete training the work of this department doesn’t end.
They take feed back to evaluate the results of training.
Compensation and Benefits
The HR department carries out wage surveys. HR department checks pay and other legal
benefits and benefits like overtime, bonus, leave encashment, gratuity, subsidized mess
and vehicles are also under HR department.
Motivation and Performance Appraisal
HR department makes the performance appraisal and is responsible of giving increments
or rewards to the workers. For creating motivation and competitive environment among
the workers certain incentives are given:
• Cash prizes
• Other
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Week 2
Production Department
According to schedule, my next department was production. Assistant Manager Mr.
Mujahid Kamran briefly explained about the production. In Apparel unit of MTM 16
units are working from them14 units working in a simple system while 2 units which are
the unit no. 5 and unit no. 16 working with modern machinery that is the ETON. Daily
production is the 100000 units.
This production process is as follows:
• Stitching (process flow)
• Ironing
• Finishing checks
• Packing accessory attachment
• Packing
Stitching (process flow)
They follow the principle of “Division of Labor” and principle of convenience they have
specialized persons for every function. That’s why process flow is used for stitching tells
how a shirt is stitch (First moon over lock, then moon attach, then pocket hem, then
pocket marking and so on). Here they attach the identification codes to the garments,
which help in back track system. For quality checking they have inline inspectors and
Inline supervisors. If there is any fault they try to remove it immediately.
Ironing
When stitching is complete these garments are ironed. This process is of great care
because this may damage the fabric. This is done with the help of steam irons. Inline
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supervisors work doesn’t end at stitching. They have to check any possible damage and
the quality of ironing.
Finishing Check
After ironing finishing check is made. This includes three kinds of checks.
a. Stain
If there are any stains on garment and they are removable then they are washed with
steam and chemicals.
b. Raffu
If there is any small hole then that garment is sent for raffu.
c. Re Stitch
If there is any skip stitch then that garment is sent for Re Stitch.
Packing Accessory Attachment
After final check packing accessories like company stickers, hang tags are attached.
Packing
In this stage garments are packed according to customer’s requirement. Inline supervisors
check whether packing is as per requirement or not
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Week 3
Production Planning & control department
I worked in PPC department (Production Planning & control) the manager of PPC
delivers a very important and interesting lecture. He not only delivers the lecture but also
takes presentation individually and offers to all to come and sit with him for consultation
of further detail. I got this opportunity and saw him many time to complete our report
and for solving question which aroused in my mind.
First day Asst. Manager gave briefing about the department. He told me that the primaryresponsibility of this department is to manage and run the production in an efficient and
effective manner. To forward accurate and timely information to relevant departments is
the objective of this department He explained the functions and procedure of this
department. According to his statement, PPC department performs these functions like.
• MRP (Material requirement planning)
•
CRP (Capacity Resource Planning)
When an order is confirmed Merchandising forwards complete details about the style to
PPC. I learned that how the plans are made for material required and how they monitored
the consumption of material. A material required is further divided into Store Plan, and
Cutting Plan. I got information about the production scheduling. Manager explained that
at second stage, plans about the production scheduling are prepared. Date shipment,
capacity of the unit and worker capacity are the factors, which they have to consider in
production scheduling. I also learned how reports are prepared and forwarded to different
departments.
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MRP (Material requirement planning)
During my stay in MRP, I came to know that “Assurance of the availability of rightquality material at competitive cost for the timely production” is the objective of this
department. I also came to know that MRP works in collaboration with Imports,
Purchase and Store departments. Manager named MRP is the mother department and all
above-mentioned departments are working under its control. I got information about the
planning for procurement. I saw that how the planning is taken place of each category of
direct material and indirect material. Manager told me about the procedure of
procurement. I came to know that quality of the yarn, production capacity; history and
lead-time are the major considerations for yarn procurement. I got some knowledge about
sundries (sundries are special type of material which includes buttons, zips, labels, tapes
etc) and their process of imports. I came to know that to keep different, items in stock
that are used in the production process or anywhere else in the factory is the main
function of the store.
CRP (Capacity Resource Planning)
It is the second responsibility of PPC to check the production capacities of Masood. Here
by production capacity we mean two things
Capability
It means that the labor and machines at Masood are able or not to prepare the garment
that customer requires.
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On Time Delivery
It means that we will handover the shipment as per contract. For this purpose PPC has tocheck these things
• Fabric Production Capacity
• Cutting and Stitch time
• Vacant Labor and Machines for Processing the Order
PPC has to provide this information to the merchandiser so that he can negotiate with
customer.
Production Allocation
PPC fulfill this responsibility by making a schedule, which deals with when and from
where fabric is received, when cutting is done, to which production unit order will be
process, and so on.
Monitoring According to Time Line & Control
All the processes being carried out are monitored according to preplanned timeline.
Masood's AMS help PPC to monitor all the processes. in order to meet any uncertain
situation safety margins are kept. PPC not only monitor all the processes but also control
the pace of process in order to send shipment on time.
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Week 4
According to the schedule the next department which I join that is the Quality control
department and in that department I met with the Deputy Manager Mr. Irfan and he told
the quality about the MTM.
How does Masood maintain Quality?
Masood Textile has documented a quality manual that states the quality management
system of the organization. Management establishes a documented quality plan setting
out the specific quality practice, resources required and the sequence of activities relevant
to particular product.
Quality Control System at Masood
There are quality checks at every stage of manufacturing starting from Raw Cotton, Yarn
Fabric, Processing, Cutting, and Stitching & Packing.
Before the fabric is cut, it is checked whether it conforms to the customer’s standards of
shrinkage, finished g/cm 2 etc. After each lot of fabric is cut, 100% cut parts inspection
is conducted to ensure that only good quality pieces move to the stitching units.During the process of sewing, each and every process is inspected by in line inspectors.
The inspectors make sure that only good parts move to the next stage. An individual
tracking number is sewn inside each garment. After trimming and pressing of the
garments, each garment is inspected by highly experienced final inspectors. The Quality
assurance team monitors the performance of every individual inspector b picking up the
inspected garments and checking the quality of these garments.
To ensure that the garments are packed as per the requirements of valued customers, they
can even track & check, which ease the garments, has been packed in. With the help of
this, they plan to achieve the Zero Defect Level.
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Corrective and Preventative Action
Masood has a very strong corrective and preventative action plan. Masood hascentralized the corrective action and controls the non-conformity arising in the system. If
necessary the relevant person immediately takes the corrective action. For preventative
action, the record is kept by the department head. Electronic records are kept by the
Information Technology Department.
ISO & TQM
Masood has ISO 9002 certification and the registration # 99086699. We have the logo of
three accreditation bodies ANSI RAB USA, UKS UK. DAR/TAG Germany and the
audits were conducted by MOODY.
ISO department provides a management system at Masood, which is free of non-
conformance. The department has training system that creates awareness of Total Quality
Management System (TQM). All the departments and people at all involved in this
program. Masood has a team of qualified and certified auditor who would check,
improve and ensure the consistency in the system.
.
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Week 5
The next department which I join that is the Merchandising and Marketing department
and in that department I met with the Asst. Manager Mr. Shehbaz Jabbar and he told
about the merchandising department it deals with the sales of the company locally and
abroad. In comprises of four main departments
I came to know that what is merchandising and its functions performed by a
merchandiser which are
•Communicate with the buyer
• Develops product
• Sampling
• Set price of the product
• Pre Production Approvals
And also performs other numerous functions.
• They fill up the gap between the buyer and organization.
• Senior merchandiser also told the process of merchandising step by step and
showed some documents and also explained the importance of this department.
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Week 6
FINANCE & ACCOUNTS DEPARTMENT
The next department which I join that was finance and accounts it is an joint department
finance as well as accounts .here I observed work under the supervision of head of
department Mr.SAEED only secondary level of work is done in finance department of
this apparel unit primary work is being done in head office. finance department works
following functions which are
• Assessment of Financial needs
• Achievement of funds
• Allocation of funds.
For achieving the above mentioned functions they divide work into different heads
1. Finance section
2. Costing section
3. Sales tax section
4. Store accounts
5. Internal audit
1. Finance section
I came to know that finance department performs following functions which are
• Petty cash control
• Cash flow management
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• Advances control
2. COSTING SECTION
• After this, I went to costing section where I met costing manager. He referred meto his assistant.
• Assistant told the major functions of costing section i.e.
• Preparation of financial results
• Quantitative analysis
• I came to know that work that work order costing; a sub type of batch costing is
used at MASOOD TEXTILE MILLS LIMITED.
• I got information that section is responsible for the calculation f the cost of directmaterial used in the production process.
• Assistant also explained the overall flow of costing section and showed me flowchart
3. STORING SECTION
In this section of Masood Textile Mills Limited the records of the main stores are
maintained under the supervision of director operation. There are three stores in Masood
Textile Mills Limited.
4. SALARY SECTION
In this section of the department the salary for whole departments are prepared. This
section is further subdivided in the following
• Garments salary
• Made up salary
• General Salary
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The salary of the garment and made up are made on daily wages and the general salaries
are made on monthly basis.
SWOT ANALYSIS
Strengths
Qualified Men Power
They have a competent management. All managerial staff is qualified in specialized
fields according to their job criteria.
Full Fledged Operations
In Masood all functions of production, performed like having in-house Yarn, Knitting,
Fabric dyeing, Processing, and Laundry and Apparel Manufacturing facilities
Serving Area
They are serving their products to those customers who are very much conscious about
quality like St. Johns Bay, JC Penny, Levi Strauss, and Hanes etc Current 85% of
production is exported to the U.S. while rest 15% to Europe.
Research & Development
They have qualified researchers, and engineers with their efforts they are making
innovations, colors of their products are numerous.
Standards Certification & ISO 9002 Certificate
They are follow international standards of production. The company has got ISO 9002
certificate which insure the quality standards.
Bar Code System
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Masood Textile Mills is the only textile mill in Pakistan with latest computerized
Barcode System that assures quality in every operation of production from spinning to
packing
Weaknesses
Separate units
Due to space issues Masood have separate units for different functions which waste time
and increases transportation cost.
High Turnover of Employees:
The turnover rate in the high, because the salary packages are relatively low as compared
to other manufacturers and no good promotional opportunities so this leads to high
turnover
Centralized management
The management at MTM is centralized. All type of decisions is made at top level. Due
to centralized, delegation of power only managers have no authority to make decision.
Old system in stitching
In stitching in 14 units old system is being adopted, while in 2 units they have latest
system which is very low.
High cost of production
The cost of production increased, such as material labor quota charges and other
production accessories.
Small international market share
The MTM has small market share at international level.
No motivated staff
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The staff is not properly motivated due to lake of incentives and less wages offered by the
company.
Less promotional activities
The company has very less promotional activities in local an international media.
Opportunities
Domestic market
They are not selling their products locally they have an opportunity to capture the local
market.
Capturing the new market
The company has very vast opportunities not only in Pakistan but also in foreign
countries of capturing the market. The company has the opportunity to capture the
markets of Saudi Arabia, Dubai, Qatar, Oman and other European countries.
Acquisition of modern technology:
The company at the current is using technology from Italy, Japan and Germany, but the
company has the opportunity to acquire the modern technology from China which is costeffective and has efficient and effective performance, similarly modern technology from
India can also be obtained
Expanding Product Line:
They can increase their production in sense of increase their product line if they will
produce home accessories.
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Threats
Political instability in country
Political condition of the country is uncertain, govt. policies can disturb position of the
company and certain rule and regulations are imposed by the govt.
Economic instability
The major threat for the company these days is the economic instability in the country
exchange rate, monitory polices and fiscal polices are not suitable.
Adverse government policies
Government is changing import and export polices day by day which have adversely
affects.
High turn over
As the turn over increase loyalty of workers decreases masood should avoid from this
threat.
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Bibliography
Books Reference:
Robbins, S.P. (2008) Essentials of Management, P 269
9th Edition
Gitman, Lawrence. J. (2008) Principles of Managerial Finance, PP 58-70
11th Edition
Websites Reference:
Web Sites Date and Time Visited
http://www.google.com.pk 20.08.2010 at 5pm
http://www.wikipedia.com 22.08.2010 at 6pm
http://www.masoodtextilemills.com 23.08.2010 at 10pm
Company & Market Reference:• Ms. Humaira, Deputy Secretary HR, MTM
• Mr. Akram Zia, Deputy Manager PPC, MTM
• Mr. Saeed, Head of Department Finance, MTM
• Mr. Shehbaz, Marketing Head, MTM
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• Mr. Mujahid Kamran, Production Head, MTM
Glossary
A
• ACS: Apparel Costing System
•
Appraisal: Estimate the Values or Qualities
• Apparel: Clothing
• APTMA: All Pakistan Textile Mills Associations
C
• CSO: Chief Security Officer
• Comparative Statement: document for comparing rates of product
D
•Diversification: vary, expand, and broaden
• Decision sheet: document for making the final decision for a purchase order
• Dozen: Unit of measurement
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F
•
Fabric: Cloth
G
• Globalization: to make global; esp., to organize or establish worldwide
I
• ISO: International Standard of Organization
• ISP: Internet Service Providing
K
• KSE: Karachi Stock Exchange
M
• MTM: Masood Textile Mills
• Musharaka: is an investment partnership in which profit sharing terms are agreed
in advance, and losses are pegged to the amount invested.
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• Murabaha: is a form of credit which enables customers to make a purchase
without having to take out an interest bearing loan. The bank buys an item and
then sells it on to the customer on a deferred basis.
P
• Purchase requisition: A document showing purchase requirements
• Purchase Order: a document prepared to fulfill the purchase requirements
• PPC: Production, Planning and Control
S
• SRN: Store Receipt Note, It is prepared when goods are received at the store
T
• TFCs: A certificate of deposit with a maturity of one year or more
• Tons: Unit of Measurement
• TQM: Total Quality Management
• Twill: A woven fabric showing diagonal lines
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V
• Vacant: Unoccupied
Y
• Yarn: Thread
Annexure