Executive Summary

Masood has grown from a garment export house into the premier business group of Pakistan. Today, MTM is considered to be at par with multinationals operating locally in terms of its quality products and management skills. I recently have done my internship in Masood Mills Limited, in which I got training from each of its department. The internship basically revolved around the product knowledge training. The system, the style of working & the commitment of the employees in MTM is really exemplary. The difference between the success & failure is doing things right and doing things nearly right, & MTM has always tried for success & that is why it is known to be one of the leading Garment organizations in Pakistan. Irrespective of all these positive points of Masood Mills Limited, I have noticed a few areas where the improvement can really increase the efficiency of MTM. In this report I have given a very brief review of what I have seen during our internship I have mentioned all these as I have made an internship as according to the schedule. I also mentioned about the Textile industry in Pakistan and vision of its industry. Then I have done a detailed SWOT analysis. I have discussed about my learning in the whole internship that is all about the Textile Terminologies and process of the productions. I have made it possible to write each and every thing that I have learnt there. I have all my practical efforts in the form of this manuscript thats the asset for my future career.

1.Overview of the Organization:

a) History of the Company: Kohistan bus service was the first professional step in the life of Ch. Nazir Ahmad (Late) father of Mr. Shahid Nazir in 1973.Afterwards Dreamland Hotel, Sangeet cinema, Aizad beverages were established in 1978 and 1983 respectively. Mr. Shahid Nazir helped his father for the formation of an Industrial Co-Operative Bank along with the development of Rabia Trust Hospital, Kakakhel ghee mills and a flying training school was established in 1994. Mr. Nazir Ahmad established Masood garments in 1990 at the Sargodha road near the Sangeet cinema. At first it was named as Rabia Hosiery. At that time only a few machines, a small quantity of labor and small unit was established. The core business of this division was knit ware garments. In 1996 Mr. Shahid Nazir reestablished Rabia Hosiery. The name was changed and new name is MASOOD Garments. Masood Management Board consists of 2 family members of late Ch. Nazir Ahmad who dominated as a leading businessman in this region. The Chief Executive Mr. Shahid Nazir and the Executive director Mr. Yasir Nazir had a dream of an ideal industry to be setup not for the profit only but also to create job opportunities, contribute to the countrys economy and to develop the sense of welfare for general public. This dream began to execute on the crutches of Mr. Shahid Nazir with the intention of pious contribution towards the country and the community committed to sound determination. To make the project viable and successful he made restless efforts.

Nature of company The facts and figures of Masood Textile Mills (Apparel Division, Mills & Head Office) make base of this report. Masood Textile having state-of-the-art technology has its own spinning, knitting, processing, stitching and finishing Divisions. The establishment of MTM in 1984 was in the shape of spinning mill, later on in 1994 its activities expanded to worldwide popular garments business. Mr. Shahid Nazir is the sole proprietor and CEO of Masood Group. The Masood Textile Mill is established under the companies ordinance 1984.The Masood Textile Mills is a Public Limited company. Yarn, Fabrics and Apparels are the famous products of MTM. The company has latest equipment and machinery to serve globally. The company has modern computerized networking system. All the Accounting and finance related work is carried out through computers. The company has capability in Fabric, Ginning, Spinning, Knitting, Laundry and Apparel manufacturing. MTM worldwide renowned customers are Sara lee Knit Products, Sears, JC Penny, Nautica, Dockers, Champs, Champion and Foot Locker & Fruit of the Loom. Eighty-five (85) % of the products are exported to USA and 15 % to Europe. Fashion garments like Polo, Rugby and Henley shirts along with basic garments like Crew Neck Tee, Sweat shirt, Boxer shorts and Bikinis are produced almost 300,000 dozens per month. In-house embroidery facility is available and equipped with Tajima machine. Professionals including four hundred MBAs and one hundred textile engineers are part of the team who actively show the skills in true spirits that gave such heights to this mill. Textile engineers and Industrial engineers are the others whose contribution cannot be Masood Textile Mill feels pride for the achievement of its staff in shape of achieving WRAP and ISO 9002 CERTIFICATION. The latest computerized Barcode system of MTM that assures quality in every operation of production from spinning to packing make it unique and the only mill in Pakistan with such state of the art technology. Barcodes are fixed on every product that assures to be traced back to the first stage and can be used to find out the root cause of short coming in the process.

Having in-house Yarn, Knitting, Fabric dyeing, Processing, and Laundry and Apparel Manufacturing facilities make MTM a fully vertical mill. The approximately turnover of 80-90 Million dollars in year 2010 depict its very profiting venture.

Vision statement To be the worlds best apparel company

Mission Statement

"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".

Objectives The main objectives of studying the organization are: A big organization to learn most out of it. Comprehensive and Systematic functions to enhance my capabilities. Exports based Company. More advantageous than locally dealing Company. Tremendous Transactions. Public Limited Company. To Polish my Self. Practical application of the knowledge obtained in the specific area. To review whether or not the theoretical concepts of specification are being applied. Internships will provide me the opportunity to test my interest in a particular career before permanent commitments are made. Internship will develop my skills in the application of theory to practical work situations. Internship will develop my skills and techniques directly applicable to my careers. Internships will aid me in adjusting from university to full-time employment. Internships will increase my sense of responsibility. Internship will acquire my good work habits. Internships will provide me the opportunity to understand informal organizational interrelationships. To equip myself with enough practical experience to have a good practically, Successful career.

Business Volume

Sr.No 1 2 3 4 5 Total

Year 2006 2007 2008 2009 2010

US $ 81,653 100,296 117,683 136,827 171,172 607,631

Rupees In Thousands Sales Rupees % Age 4,899,190 11.01 6,017,735 13.53 7,884,785 17.73 10,946,180 24.63 14,720,830 33.1 44,468,720 100

Interpretation An exchange of goods, services, or other property for money.Sale is the main force of any company. Every organization tries to their best level to improve their sale volume. It could be possible when company improve process and Quality.

By satisfying the customer show that sale volume should be increased. In 2006 the sales of MTM 11.01% of total sale this trend is increase and 2007 the sale volume of company is 13.53%. Next year 2008 due to demand the sale of MTM increase and sale of 17.73. Next year 2009 and 2010 the trend or sale increase with respectally 24.63% and 33.10%. 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 wellspring.

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.

Trust

MTM
Integrity Respect

Organizational Structure

Masood Textile established in 1994. Founder of the Masood Group is MR. Nazir Ahmad (late). Now the MR. Shahid Nazir is the Chief Executive of MTM. MTM was a private organization in start. In 1999 Masood Textile turned from a private company to a public limited company and listed in KSE. Directors Mr. Naseer Ahmad Shah Mr. Matloob Hussain Mr. Muhammad Arshad Mr. Muhammad Ali Sohail Mr. Fazal Ahmad Mr. Muhammad Nawaz Tishna (Nominee-NIT) Chief Financial officer Mr. Tanveer Ahmad Siddiqi Auditors M/S. Riaz Ahmad & Company Chartered Accountants Company Secretary Mr. Abdul Bari Haqqani Bankers/Financial Institutions Habib Bank Limited. United Bank Limited

Habib Metropolitan Bank Limited MCB Bank Limited

Vertical Operations

Spinning Knitting Fabric Dying Processing Laundry Cutting

Mills

Stitching Finishing Packing

Apparel Division

Operational

Masood is a truly Vertically Integrated Textile Unit. It has in-house Yarn, Knitting, and Fabric Dyeing, processing, Apparel Manufacturing and Laundry facilities. The Company has five SBU's and a highly qualified experienced mills manager heads each unit. All Mills Managers in turn report to the General Manager. The objective to operate in this manner is that there is a close

co-ordination and link between all the divisions. Every unit operates in the most efficient manner in-order to achieve competitive prices, timely delivery and quality products.

HUMAN RESOURCE DEPARTMENT

H.R Manager

Sr.H.R Manager

H.R Executive

Management Trainee

Human Resource Management: In basic objective of HR Department is to manage the company employees so efficiently that they give maximum output. To achieve this objective following functions are performed Function of Human Resource Department. Human Resource departments main function is recruitment of employees. They analyze the job and then try from internal sources. If there is no suitable person they hire it from external source for this they give ads in newspapers and there is a complete selection procedure for

hiring an employee. This is a chain system the chain starts from job analysis, then strategic planning and then selection. Total merit base system is adopted for selection at managerial posts. While reference system is used for workers selection. Timing & Development. MTM has a complete on the job and classroom training g program for its employee. Every employee has given proper training about his field; instructors and coaches are appointed for this. Emphasize s given on employees career development. Employees are encouraged to participate in different refresher courses and seminars. Monitoring and Evaluation. Employees performance is constantly monitored and evaluated on monthly basis. His or her working efficiency or checked and evaluated by top management. Performance of inline inspection on monthly basis Compensation & Benefits. MTM is an equal opportunity for employees.

Performance Appraisal. MTM has a complete employee relations system. Following facilities are provided under this system. Discipline. For maintaining discipline MTM has career counseling which talks about employees problems relating their jobs.

Complaints Handlings.

Because in MTM males and females work together to there are complains or harassment and such other problems. So MTM gives full authority to its managers to tackle these problems. Complete secrecy is maintained while taking action against it.

Objective of Human Resource. To help the organization to reach its goals To employ the skills and abilities of the workforce efficiently To provide the organization with well trained and well motivated employees To increase employees job satisfaction and motivation To develop and maintain an quality of work life To communicate and implement HR polices To help maintain ethical polices and behaviors

Production planning control (PPC)

PPC Manager

Deputy Manager PPC

Asst. Manager PPC

Sr. PPC Officer

Management trainee

Production Planning & Control Department The basic objective of PPC departments is to prepare a total profile of working on a product order. In PPC profile color and size break down, time line, cutting program, size chart and stitching details, packing programmed, accessories sheets and action calendar is describe. Beside that PPC action calendar is describe. Beside that PPC department prepare a costing sheet for the P.O.PPC department performs following functions:Costing PPC department prepares a job cost sheet. In which cost of manufacturing a product is estimated. While estimating the cost following things are taken in concern. Products quality, size color, fabric, embroidery, accessories, packing material, rejection margin, stitching cost, freight, taxes, duties, insurance. After estimation all these things proposed cost per piece is mentioned. Re-Planning PPC departments another functions is re-planning if a sudden situation occurs, which disturb the process PPC department re-plans the situation and handle it for example fabric shortage, fault in machine, workers are absent etc. PPC manage all these problems according to situation. Production Capacities 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 a Masood is able and not to prepare the garment that customer requires.

On Time Delivery It meant that we will hand over 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 this information to the merchandiser so that he can negotiate withcustomer.

Merchandising Department Merchandising Manager

Sr. Merchandiser

Merchandiser

Asst. Merchandiser

Management trainee Merchandising Department

MTMs merchandising departments is very active it performs marketing functions. 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 customers by quality products and timely deliveries. Function of Merchandising Department. Merchandising department performs following functions to satisfy the customers. Merchandising departments role in Apparel industry is very important. It plays the role of marketer. They initially contact the customer. They negotiate the customer about product design, specifications and productions techniques. They play the role of liaison between customer and the company. The merchandiser is the front man of customer. His main objective is customer satisfaction. The merchandising department prepares the sample, estimate the price, develop the fabric and take approvals from the customer about the order. Pricing Merchandising department calculate price of the products. For this purpose merchandising departments coordinates with PPC department for costing and then adds companys profit in it and negotiates this price with customer. Now MTM is designing a computerized costing system known as ACS. Apparel costing system. By installing this system the price of a product is automatically calculated. Sampling

For sampling purpose merchandising department has a sample room. Where all type of samples is prepared, merchandiser prepares the proto sample and sends it to customer for approval. Lead-time of proto sample is 3 to 4 days. Merchandiser prepares the samples according to specifications of the customer. Amendments are made in it. Inventory Department

Inventory Manager

Manager

Main Store

Shipment

Fabric Store Store In-charge

Stores In apparel division of Masood Textile have three types of stores, 1- Fabric Store 2- Main Store 3- Shipment Store Fabric Store

Here fabric received from Masood Apparel Division is stored the fabric is received in form of lots. The (out) pass is issued 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 to fabric store.

Job Card Filling This job card contains all necessary information about fabric such as purchase order number, fabric quality, garments description, received dates, shelf numbers in which it will be Stored before production.

Main Store Here they store accessories me use in production (e.g. thread, twill tape, buttons etc.) administration accessories (stationary kitchen stock etc.) and accessories relation to transport vehicles. Simply we can say every thing except fabric is stored here.

Shipment Store Here all the shipments are stored. After production and packing garment is stored to shipment store and functions of export department shipment is moved from shipment store to containers for KPT.

Other Stores Garments, Fabric, and accessories are stored to other department like Crescent Godown

Saeed Colony.

Quality Assurance Departmen

Q.A Manager

Deputy Manager Q.A

Asst. Manager Q.A

Q.A Officer

Q.A Auditors

Quality Assurance Deptt.

The main objective of the quality assurance departments is to ensure the quality or finished products according to the customers specification.

Role of Quality Specification Quality assurance departments 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 everything is checked by Quality Assurance Deptt. If everything 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 garments and fined fault. If the fault ratio is more than 2.5% he is rejected the piece.

In that form description of faults are mentioned. Q.A. department ensures that to 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.

Role of Quality Control

In parallel to cutting quality control works. There are in line supervisor in cutting department who audits the bundles. Match mock-ups and find fault, they count the pieces, to 100% pieces are counted and 20% pieces are audit. If the pieces are not up to the specifications they are rejected, if the pieces are ok they are approved and send ID induction Department.

Laboratory Test for Fabric quality

Certain lab tests are used in MTM for the checking of fabric quality. These are following.

Shrinkage Test G.S.M. Tests Width Stretch Test PH scale Test Crooking Test Bleeding Test

 Scorching Test Hot West Press Test Cotton Polyester Test To qualified fabric specialists in a lab do these tests

Information Technology Department I T Department

EDP Manager

Deputy Manager Data Manager Asst. Manager Web/E-Mail

Officers

Web Developer

MTM Garments Division has very modern fully equipped I.T department the basic objective of I.T department is to collect, interpret and summarize the data in an easily understands able form. Now we discuss I.T at Masood briefly. Applications of I.T at MTM Information technology department has different programs for different functions those are following. H.R.M.S Human Resource Management System (H.R.M.S) is a program in which all the data about employees is stored. This data is readily available for higher management. HRMS works on following grounds. Employees evaluation Form Evaluation History of the employees Complains against Employees. Department Wise Strength of Employees & Budget Month wise employees turnover Reports about Employees G.M.S Gate Management System (GMS) is a program, which deals with the function of gate office. In this system following functions are perform

 Employees IN/OUT record and time Visitors IN/OUT record and time Temporary Employees IN/OUT record and time Every employee of MTM has card. Which he or she scans while IN/OUT its time is noted? There are certain reports about In /Out system preserve in GMS are available for higher management. E.P.S Employees payroll system is design to generate employees salaries and benefit in computerized system this system performs on following ground. Generation of Employees Salary Generation of Pay Salary Salary History Employee Gratuity Record Leave encashment Record This system makes easy the payment procedure and reduces corruption and increase efficiency. Apparel management system (A.M.S) Apparel Management System of MTM is very unique. It keeps the total record of every piece made by MTM up till now; every garments manufactured at MTM has a barcode numbers which is feeded in AMS. And whenever is needed this number is feed and complete History of that garments is open. AMS works on following grounds Complete backtrack of garment In Line status of customers P.O Worker evaluation Contractual employees wages calculation and Financial Summary Error Tractability in finished produce

 Reduction in fabric loses Reduce duplication of work Paperless environment System Security Unique ID tracking Number of each garments Back tracks form cotton crop type, yarn, knitting, fabric processing, and cutting, stitching, inspection, packing and shipment. Organization Planning and Development (O.P.D) OPD is also oracle base programming in MTM throgh it all apparels and mill link with it. In which include all information regarding employees personal detail, salary, promotion, increments and many more. Its use is very easy just add the employee code and emplyee and get informatin of employee. Code means bar code issue by the HR department through OPD.you can excess any employee information from any computer of apparels and mill where I.T department give access of this Software

I.T Network in MTM Local Area Network (LAN) Masood Textiles Apparel Division has about 180 computers. These computers are interlinked via local area network. This network provides fast moving of required data and also facilities 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. Wide Area Network (WAN) Masood Textile Mills (Apparel Division) is linked Masood Textile Mills (Fabric Division) which is 32 Km far from it. All compilers of Apparel Division are linked to Fabric Division through a communication Tower. This system works like mobile phone system.

Beside the MTM has satellite Internet system. For this a satellite dish is installed at the factory. Every employee or MTM has free Internet facility. E-Commerce/Web Site Masood Textile is working as a B to Bcompany, it uses Internet for its negotiations and transactions with its custome

Finance department

Finance & Accounting Operation

Maintaining the data base of accounts department Historical and periodical reports Presentation of Financial Statements Cash flow statements and cash disbursement Bank reconciliation statements Reconciliation with parities Variance analysis

Production vs. shipment analysis Analysis on loss of profits Performance evaluation reports Yield analysis Monthly Stock reports of all units & stores Working of Compliance Audit.

Function of Finance Department: Accounting Systems Masood textile have the set of manual and computerized procedures and controls that provide for identifying relevant transactions or events; preparing accurate source documents, entering data into the accounting records accurately, processing transactions accurately, updating master files properly, and generating accurate documents and reports. Finance Systems Masood textile has a vertical unit including yarn to stitched garments. To meet the requirement of money for its manufacturing and selling expenses Masood finance system help to arrange all necessary amount in all field and all departments. Most common tool of this organization is short term loans or finances. In detail they acquired loan or finance against those purchase orders that came from buyers and will be shipped latter to these buyers approximately with in three or four month. Due to this heavy volume of goods produced and sold this kind of loan required to full fill the requirement of factory overheads. Use of Electronic data in Decision Making Masood Marketing and other official use electronic data in decision the examples are as follows: PowerPoint presentation on projector Product pricing with buyers on internet

Oracle web based information system

Mobilization of Funds Head office of Masood Textile situated at Canal road plays a vital role in mobilization of funds according to the financial needs of its units and payments of creditors / payables.

The Major Kinds of Funds Mobilization are as under: Creditors Payments Rs. 64.9 Million Salaries, wages and other benefits Rs. 10.0 Million Distribution, Selling , Administrative & General Expense Rs. 96.34 Million Million, Direct Material Rs. 315.50 Million

Generation of Funds Masood Textile Is an exporter of Apparel product all over the world. The foreign remittance received in USD by bank and the banks pays this amount to Masood Textile in Pak Rupees. The figure of per month average sale is Rupees 700.00 Million Source of Funds The major source of Masood Textile Is an export / Sales and other source of funds are banks for the purpose of deposits, receiving of remittance, loans etc. Allocation of Funds The head office of Masood Textile provide funds to all of its sites , offices and units as per their demand , the sites which includes Apparel Division , Mills , Karachi Office, Lahore office send demand of required amount regarding expenses , then head office have the responsibilities to arrange finance / money as per desire of its sites or offices. The Example of per month expenses are as under:

Apparel Division Salaries, Wages & Factory Overhead Rupees. Mills Rupees. Lahore Office Rupees. Karachi Office Rupees. 160.00 Million 1.80 Million 0.20 Million

Work of internal Audit

In this department the purpose of this department is to minimize the cost of company. How To general item How to Approved sample. Check payments and report. Give suggestion to management. Overall check position of APPAREL 1.

Behavior of the Organization

The behavior of the Masood Textile team is very friendly with each member of his team and to the all internees of different universities of Pakistan. The Human Resource Department manages the students training with different department of this organization like their lectures & visit to all departments. The official of Human Resource department make scheduling of all internees badge for training purposes with different departments as per required experience in the specific field of the students.

The normal procedure of Masood textile recruitment is that they hire fresh MBAs and make preference to those MBAs who already completed their internship with Masood Textile. But this trend is observed they hire B.com (hons.) students which do internship in MTM after complete their degree they can apply and take preference.

SOWT Analysis: Key Strengths of MTM:

ISO 9002 Certification. WRAP Certified Export-oriented organizations Vertically integrated. High quality products. Excellent market image in the local and international market. Highly qualified management. Talented marketing managers Qualified finance staff Adequate financial resources. Competitive advantage. Sound policies Successful history

 Adopting information technology. Loyal customers. Skilled Labor. Broad and motivational vision. Back Track System

Key Weaknesses of MTM:

Rely on foreign customers. Increased employee turnover Centralized management system High cost of production. Low production capacity. De-motivated Staff. Less promotional activities. Non-Corporative culture. Insufficient benefits for the employees. Not any separate Brand name. Communicational gap among different departments. Not criteria for workers Reference are extensively use for this purpose. Continuous improvement in Apparel not in spinning and knitting.

 Not any permanent buyer agent in Europe.

Key Opportunities of MTM:

Can expand its division such as entering in weaving sector also. Can introduce its own label in domestic as well in international market Increase demand of Pakistan cotton-made products. Can capture new market segment. Can introduce product in Pakistan. Advertising growth. Can reduce the cost by proper utilization of resources. Can hire well-educated and experienced staff.

Key Threats of MTM:

Entry of new competitors just like China & India. Buyer need and demand changes. Political instability. Changing geopolitical situation. Change of government policies.

 Low price offered by competitors. Globalization. (Foreign investor can invest).

Conclusion

Masood Textile is one the best apparel producer in Pakistan. Most probably number 1 in Pakistan and 3rd on Asia. Masood is successful in developing such a great system which is unbeatable at least in Pakistan.

Masood Textile is running by a devoted team of manager and professionals. Apparel management System of Masood Textile is helping them in giving best of their effort. Masood has been able to get regular customers from U.S.A. like JC Penny. Moreover JC Penny has also given best quality award to MTM in 2002. Its probably only firm in Pakistan who have won WRAP award.

Inside the organization Masood textile is practically meeting the challenges of Global Village. They have created completely paperless office; every activity of Masood is online. In/Out time of employees is also computerized.

I have observed some negative things also during my internship in Masood like sometime extra burden is loaded on worker due to late shipment. Moreover its common opinion of every one

about MTM that employees of Masood only knows the in time but they not know the out timing from office.

Even Masood has great capability to meet the requirements but sometimes Masood get the order in such a bulk quantity that its capacity becomes lesser than orders.

Financial position of MTM is better than many other organizations. Masoods decision-making is centralized due to which no problem occur in lower level management. They level management of Masood is also performing well. As Masood working on their mission to be the worlds best Apparel Company but there is no end of anything always a room for improvement exists.

Suggestions & Recommendations

No doubt Masood Textile is doing well; even more than its capacity. They have proved themselves in the INTERNATIONAL market but there is still room for improvement. I would like to give some suggestions at the end, I trust that MTMs authorities will look into my ideas and I hope for best in future.

Masood Textile Mills Limited should invest their spare money / cash in different securities or portfolio to increase profit maximization.

Masood Textile Mills Limited should increase its market share either through cost minimization or innovations.

Masood Textile Mills Limited should bargain with banks for lowest rates of interest to decrease the financial cost.

Monitor capital expenditures to make sure that these are not misappropriated. Masood Textile Mills Limited should try to reduce per minute & per unit cost to meet the buyers requirement regarding low prices due to competition.

Masood Textile Mills should try to reduce the financial cost that normally incurred to meet the huge level of business volume.

Expansion of company to generate more funds through issuance of share rather than to get loans from banks. The company should minimize its gearing ratio to improve its financial position.

Need to improve fabric to induction process to avoid air shipments. The biggest problem of this time is needed to improve proper execution of customer purchase orders.

Need to improve utilization of available capacity to reduce per unit cost to increase the market share.

Need to reduce cost of white elephant of apparel division i.e. high rejection, excess cutting, excess consumption of accessories, air freight, un-absorption of fixed overhead, overtime etc.

Need to develop a culture of cooperation and teamwork. For this purpose a revolutionary commitment from higher management is required at this time, otherwise MTM may not be able to cash the benefits of quota elimination.

Proper training at each level should be given to the employees. To have its own ginning units is not bad idea at all. This would not only eliminate the dependency on the suppliers of cotton but would also help in the production of the high quality yarn.

The problem of mistrust and communicational gap between the departments may be removed through: a) Behavioral Training of the line management. b) Induction of Masters of Commerce and Business in all the departments.

These MBAs will play the role of bridge among different departments. This will improve the cooperation, communication and behavior of line management with the working force.

References: Interview with following Person were conducted for information 1. Mr. Nadeem Akhtar (Asstt. Manager Internal audit) Documents used for compilation of this report. 1. Masood textile Mill Ltd. Fsd, Annual Report 2006 and 2007 2. Masood textile Mill Ltd Fsd, Annual Report 2008 and 2009 3. Review of Pakistan textile industry 2010.

Future trends of project management in Pakistan

INTRODUCTION

The business and construction industry is becoming increasingly global and the role of the project management professional now includes many front end services, which increases the required skill set of new graduates(Choudhury, 2000; Kay, 2001). Project management is no longer a special need management (Arain, 2005a).Alternative contractual delivery systems, collaborative partnerships, new management initiatives, and global product markets require professionals and students to have a broader awareness of construction methods and project management issues. Duncan (1996) defined project management as the application of knowledge skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from the project. Project management is rapidly becoming a standard way of doing business (Arain and Assaf, 2003). An increasing percentage of the typical firms effort is being devoted to projects. The future promises an increase in the importance and the role of projects in contributing to the strategic direction of organizations (Arain, 2005b). In the developed world, many academic disciplines inside and outside the project management education have successfully used study abroad programs as an effective means of broadening project management students academic, personal, and professional views of the world(NASFA, 2003). This certainly is the dawning of the age of project management in the developing countries. Duncan (1996) identified different stages of project management such as project initiation,

planning, execution, control and the closing process. Bryde (2003) discussed different terms which have emerged since the beginning of 1990s to describe the project management approach. These terms include: modern project management, management by projects, projects (project management)culture, and beyond the Gantt chart.

Project waste is typically viewed in seven categories:

Staff time on the project Non-human resources such as materials and equipment, Methods that are not optimized, Idle time while decisions are pending,. Using the wrong tools for activities, Weak plan for implementation, and Wrong skills assigned to the project.

We know that discipline of planning, organizing, securing, and managing resources to achieve specific goals is the key definition of the Project Management since early civilization. As the price of resources increases, we need to find new and better methods of conducting project work to offset costs while remaining competitive in the marketplace. Hence we lead to the situation to forecast future trends in the project management. While its not possible to predict whats going to happen in the future,its pretty easy to predict the trends in the field of project management. How? We can forecast the project management trends based on what has happened in the previous year and based on recent survey results. Following trends are the summary of the recent IT management trends based on recent management study reports and a few survey reports.

Customer Trends People from middle class society are increasingly making use of the Internet. Economics Trends Pakistans GDP is growing high and the progress is really remarkable in this year. Business Trends Outsourcing is growing and E-commerce has gone social now. Also, businesses want to sit next to the customer when developing products and services for better feedback. Social Trends People all around the world are started to use social networking sites such as Face book, LinkedIn, MySpace, and Twitter to share their experience.

Lets try to forecast the trends based on the above mentioned survey results and trends. There is no doubt that today we will face more aggressive competition than in the past and the business environment we operate in is a highly turbulent one. Regardless of improvements in project management, there must be new methods of performing that saves on the cost of resources consumed to offset increases in price. Let see what I can. I would think that the following project management trends would take place

Clear objectives that support the mission or purpose statement, emphasis client management. Clear mission or purpose statement that describes what the project is to accomplish. More controlled requirements and processes definition. A comprehensive list of facts and assumptions that are related to accomplishing the mission. Here where we need great emphasis on Risk Management too. Well defined schedule to describe activities, their durations, and allocated resources. Emphasis on leadership and good people management practices, proper resource management. More use of free-wares, open source software and collaboration tools, emphasis on new technologies. Proper quality control and a clear description of the periodic review practices. A project close-out procedure that includes delivery of the product.

10 Trends Ruling Project Management That Will Affect Your Future

1. Leadership Skills Will Be the PM's Critical Success Factor Leadership skills, such as critical thinking, crucial communication, and organizational change management, will be strategically imperative project management competencies to master. In 2011's project management landscape -- featuring more complex projects and greater use of

virtual teams -- being on time and on budget will require not just a laser-like focus on the triple constraints, but on the requisite leadership skills necessary for an individual project manager's success. The challenge for organizations will be to clearly define what "leadership" means in the project and program management context.

2. No Industry Will Be Spared from the War for PM Talent Savvy talent management and retention strategies will be essential to ward off poaching in 2011. Although economic recovery has been uneven worldwide, project managers (PMs) with the greatest mobility and experience will have the best opportunities for career growth through "overseas" assignments. In particular, India and China will continue to be plagued by a dearth of competent and experienced PMs to manage large and complex infrastructure and IT projects. Additionally, as mega-projects at the King Abdullah Economic City north of Jeddah and King Abdullah Financial District on the outskirts of Riyadh kick into high gear, more opportunities for work in the Middle East will become a reality.

3. Agile Will Be Seen for What It Isand Isn't Project management organizations embracing Agile software and product development approaches will continue to grow while being faced with the challenge of demonstrating return on investment through Agile adoption. In addition, they will need to disabuse their stakeholders and executives of the expectations set by IT consultants, the media and the vendor community that Agile is the next "silver bullet." Organizations that do it right -- including selecting the right projects for Agile -- will reap significant rewards.

4. Competency Models Will Be Core to Managing Professional Development and Promotions for PMs As project management gains greater acceptance as a discipline, the hiring, assignment, promotion, and professional development of PMs will be based on comprehensive competency models. In order for these models to be effective, they must be company-specific. Competency models illuminate the behaviors required for a PM to be successful and take on larger and more complex projects. Accordingly, the chief learning office or senior human resources executive, business unit heads, and the enterprise project management office need to work shoulder-to-

shoulder to identify and codify organization-specific competencies, thereby building a framework for talent management success.

5. Experiential Learning Will Be More the Norm than the Exception The professional development of PMs will increasingly focus on reality-based learning and onjob training, an approach certain organizations in Asia have taken for many years. Learning providers will be required to send PMs back to the job from such sessions with the ability to immediately apply what they learned to their current projects. Even the many universities that offer project management degrees will face the challenge of making their courses and programs relevant, practical and pragmatic based on participants' real projects. The lecture mode is dead and any training provider or university who ignores it does so at its peril.

6. Informal Learning for PMs Will Gain Momentum Organizations will continue to develop and exploit informal learning approaches such as communities of practice, various forms of social media, as well as coaching and mentoring. With millennials joining the workforce in greater numbers, we will witness more effective use of social learning technologies and approaches, such as wikis, blogs, videos, podcasts, and other methods of communication. With four generations now in the workplace, it is not only the millennials who will benefit by such relatively new forms of learning. However, the great Zen kan question of the day is, "If informal learning becomes formal, does it become formal learning?" If the answer is yes, do we search for more informal learning to formalize?

7. Project Sponsorship Will Become an Area of Focus in South Asia The roles and responsibilities of the project sponsor will be a key focus in South Asia, especially in India and Bangladesh, as organizations try to accelerate their structured approach to project management. Such organizations are trying to avoid the experience of others in their industries around the world whose "spotty" record of success in project sponsorship has contributed in whole, or in part, to less than successful projects.

8. Outsourcing Will Remain a Risky Business The continued growth of outsourcing will force organizations to pay more heed to its associated risks and conduct better due diligence. As a response, organizations will strengthen their risk management cultures and recognize the value of best practices in contract management. More than a euphemism, the word "sourcing" will replace the term outsourcing as it more accurately describes the resource allocation approach both internally and externally for many organizations.

9. PMs Will Team with "Change Partners" and Use Structured Methods to Facilitate Adoption Projects initiate change and PMs are change agents. Yet, they have been ill-equipped to facilitate the type of change required to adopt the product or service the project delivers. In 2011 we will see more organizations developing and assigning "change partners," also known as change management experts, to projects to assist in such adoption. Moreover, project teams will slowly but steadily increase their use of change management methods, which will be packaged as methodologies.

10. The PMP Will Continue its "World Domination," but Will No Longer Be Enough With 400,000-plus holders, the PMP will continue to be the most popular project management credential in the world, outpacing every one of its rivals as the "credential of choice" among practitioners. While most organizations will continue to support their PMs in earning the credential, the value of proven experience and demonstrated competency will take on even more relevance beyond having the certification itself.

Project management continues to play a critical role in driving operational efficiencies. Savvy business leaders are putting more stead in project management to fine tune their competitive advantage. Alongside technical savvy, other skills such as negotiation, communication, critical thinking, change management, and leadership are taking on new importance for project managers. Influence and organizational agility will be key factors for performance improvement going forward.

The Future of Project Management

Implementing project management and quality management programs introduces change into the work environment. It means moving people from old methods, structures and procedures into new ones. It involves learning new skills and roles. Even for a stable organization, it is difficult to manage the transition using regular structures and approaches to training. Managing the change process from the initial successful pilot to full realization of project management and quality management systems is a complex and challenging task that requires continued attention from management.

Successful project management systems require that the organization undertake a significant cultural change because project management systems have a profound effect on: reporting structures, performance systems, communication systems and resources. Employees need to be prepared for the changes that will be necessary and to understand the benefits of the change.

Our research of over 750 organizations worldwide, From Crisis To Control: A New Era in Strategic Project Management, has provided some key insights into the future of project management. Here are some of the trends we have noted from the findings of our research:

1. More organizations will implement a strategy and culture initiative to ensure success with projects. Our research indicates that organizations are missing an opportunity to align projects with organizational strategies and do not effectively manage their capacity to undertake complete projects successfully. To overcome these deficiencies many organizations set up Project Management Offices. Despite this investment, many of these Project Management Offices have failed to deliver on the promise of measurable impacts on the bottom line.

The research shows that successful project management systems require that the organization undertake a significant cultural change because project management systems have a profound effect on the structures, systems and resources of the organization. Employees need to be prepared for the changes and understand how it will benefit them.

2. Organizations will start to recognize that Quality Management is part of successful project management. Our research found that more effort was given to organizational tasks than to establishing processes or guidelines to prioritize projects in alignment with the organizations strategic plan. Project quality systems will evolve to establish quality standards for processes and documents used in projects. The ISO 10006, Guidelines for Quality Management in Projects improves project management. This guideline provides direction on the management of project processes within a quality management system in order to achieve project objectives.

3. Project Management Offices will become pass. Despite considerable effort and investment in Project Management Offices, the findings of our research indicate that for the most part, they fail to gain the approval of senior management team. Just as quality departments and quality steering committees no longer exist, the Project Management Office will also become pass, having played out its role as an agent of change inside the organization. Instead, senior management will focus on the interests of the organization as a whole and decide on strategic importance of projects and resource allocation requirements.

4. The role of the project manager as a unique position will die. Just as the role of the quality manager is no longer today what it was 15 years ago and this job title is rarely found in organizations today, similarly, we see that the role of the project manager will also evolve to become a work skill that is part of every employees job responsibility. This will require a cultural shift in how projects will be managed in the organization.

5. Performance management systems will incorporate the management of projects as part of

a total job performance measurement. It is evident from the research findings that current performance management systems are out of touch with how work is being done today. The rise of Matrix Management Systems, in which staff has dual responsibility; day-to-day operations - to their direct supervisor and functionally to a head office specialist, require staff to be involved in projects as part of their job function (which is not part of their job description). Yet existing performance management systems fail to properly reward and recognize employees assigned to project and quality teams.

Performance management systems must therefore incorporate the overall performance of an employee according to their job description in combination with their performance on projects and quality initiatives.

6. Organizations will seek out training that combines both quality and project knowledgebased learning. As project quality systems become implemented by more and more organizations, a new skill requirement will evolve that we refer to as Business Process Management. This competency will combine quality and project management knowledge. Organizations will soon begin searching for curriculums that span both areas to accommodate the merge of these two disciplines as a critical skill. 7. Project and quality principles will be infused into everyones roles within an organization. As principles of project management fuse with quality management requirements, organizations will expect a quality-based approach to the management of projects so that corporations are able to successfully execute projects time after time. Quality and project management will be infused into everyones roles and will impact all organizational departments.