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Preface
It is the age of information & competition. The scientific advancement has made the life more
dynamic & competitive worldwide. So one must have practical knowledge and trained enough to
live successfully in present competitive situation because it is becoming difficult to survive
without creating changes & adapting ourselves according to these changes.
The students of MBA receive knowledge during their study, has completely theoretical base. Their
ideas remain unsaturated, unless students do not have any practical experience. So to provide the
students an extensive exposure of practical business aspects, department of business management
sciences arrange a compulsory 6 weeks internship program, for all of its MBA students, in a wellknown organization. This thing enables the young business executives to familiarize with
professional business approach. To enhance their writing skill, the students are also required to
make the written presentation of their experiences during internship program.
Masood Textile Mills Ltd. (Apparel Division) a leading organization in Garment sector was
assigned to me for internship. This report is about my experience & knowledge, which I have
gained during my internship program. In this report I have made a humble attempt to express most
efficiently and effectively what I experienced & observed at Masood Textile Mills (Apparel
Division). I think that this report will be really helpful for those who want to know about Masood
Textile Mills Limited (Apparel Division) Faisalabad.
Contents
Sr no:
Discription
Page no:
1. Executive Summary............................................................................................................. 9
2. Objective of the Study....................................................................................................... 10
3. Introduction........................................................................................................................ 11
a. Awards..................................................................................................................... 12
b. Mission..................................................................................................................... 15
c. Vission......................................................................................................................15
d. Customers................................................................................................................ 16
e. Product line.............................................................................................................. 17
f. Organizational Hierarcy........................................................................................... 19
g. Apparel Division...................................................................................................... 21
4. Human Resource Department.......................................................................................... 23
5. Merchandising Department.............................................................................................. 33
6. PPC Department................................................................................................................ 38
7. Production Department..................................................................................................... 43
8. Quality Assurance Department ........................................................................................49
a. MilitarySample Standards........................................................................................ 52
9. Industrial Engineering...................................................................................................... 53
10. Stores .................................................................................................................................. 56
8
Executive Summary
In this 8 weeks internship program I attended the lectures of key departments (Cutting, Stitching,
PPC, Merchandising, Quality Assurance, Stores) of this largest knitted garment manufacturers of
Pakistan which are delivered by experienced managers running these departments. After attending
the lectures I also visited these departments for acquiring practical knowledge.
All the departments of Masood Textile Mills Ltd. (MTM) start their activities when the
merchandising department receives the purchase order (PO) from the customer. This PO is sent to
PPC department for further processing. After the PO confirmation the stitching department gets
cutting from induction department and starts production, other departments also work along with
production units.
I also observed that MTM is fully modernized and equipped with latest cutting, stitching and
packing machines. Complete back track system and Apparel Management Systems are unique
characters of MTM. It is fully equipped with quality control laboratory which frequently check the
quality of fabric. Quality assurance checks the quality of finished products; it makes sure 100%
error free products.
Human Resource Department in Masood Textile Mills Ltd. (MTM) is very strong. There are four
main functions of HR department. Which are Recruitment and selection, Compensation and
benefits, Training and development and Performance appraisal.
10
Introduction:
MTM(apparel division) is a SBU of Masood group.Masood group was founded by Mr.Ch Nazir
Ahmad father of Mr.Shahid Nazir.Kohistan bus service was the first professional step by Ch.Nazir
Ahmad After wards dreamland hotel, sangeet cenima and aizad beverages were established in
1978 and 1983 respectively. Mr.Shahid Nazir and Mr.Zahid Nazir helps his father by the formation
of industrial cooperative bank along with the development of Rabia trust hospital. Kaka khel Ghee
mills and a flying training school were founded in 1994. The Masood Textile Mills is a Public
Limited company. 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.
The companys apparel division, which is producing high quality garments, is situated at Sargodha
road, near General Bus Stand Faisalabad. But its registered office has shifted to canal road
Faisalabad. Which is obtained on lease? The company implemented the quality system and had
awarded ISO 9002 & WRAP certificate. The company maintains quality standard at all levels to
establish consistency and efficiency. The company is exporting its products to U.S.A, U.K. and
Germany
12
AWARDS
FTL has awarded MTM "Accuracy of Information and Compliance Supplier Award ".
13
Fruit of the Loom has awarded Masood "Quality Control Award 2005".
14
JCPenney has awarded Masood "Best Quality Award for 2002" Certificate.
JCPenney Awards Masood "The best supplier of the region award 2001-2002". The ceremony was
held in Singapore on 17th July 2002. Shahid Nazir (C.E.O.) received this award.
15
Company Mission:
"Our Mission 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".
Vision
To be the worlds best apparel company
Organizational Values
Trust.Integrity.Respect
Quality Policy
1. Customers satisfaction
2. Zero Defect/Never Ending Improvement
3. Total Quality Management
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Champion
Chaps
Calvin Klein
Dockers
Product
line:
MTM is a leading apparel company in Pakistan having expertise & machinery capable of
transforming customer ideas into superior quality garments, which are taken as the most
GAP
Hanes
JCPenney
Levi's
Nautica
Polo
Polo R.L
Russell
Speedo
Tommy Hilfiger
Tom Tailor
Vantage
Sears
Jockey
Guess
Foot Locker
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Types of fabrics:
Jersey
Single jersey
Bird eye
Striper
Lycra
Sueded
Double
Heavy jersey
Rib
Interlock
Terry
Waffle
Mini thermal
Pique/pk fabric
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Vertical Operations:
Spinning
Knitting
Fabric dying
Mills
Finishing
Laundry
Cutting
Stitching
Finishing
Apparel Division
Packing
Organisational Hierarchy:
Chief Executive
Officer
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Senior Manager
Manager
Deputy Manager
Assistant Manager
Senior Officer
Officer
Management
Trainee
Employees
Permanent Employee
Mills
6500
Garments
9515
20
15015
4000
Garments
4529 8529
TOTAL
23544
Departments
Departments can be distinguished into three categories
Operations, Services & Finance
1. Operations
Industrial Engineering
Cutting
Production
Quality Assurance
2. Services
Human Resource
Information Technology
Merchandising
Purchase
Quality Assurance
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Product Development
3. Finance
Accounts
Inventory
Marketing
Merchandising
PPC
Cutting
Induction
Production
Sewin to Pack
Quality Control
Quality
Assurance
External Audit
Shipment
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Div. Manager
Div. Manager
Production
Manager
AP Manager
Unit Manager
Quality Control
Manager
Product
ion
Supervi
Inline
Superv
isor
Clippin
g
Superv
Finshi
ng
Superv
Packin
g
Superv
Operat
ors
Inline
Inspec
tor
Clippin
g
Person
Final
Inspec
tor
Packin
g
Person
HRM Department
At a general level, it is important to analyze training needs against the backdrop of
organizational objectives and strategies. Unless you do this, you may waste time and
money on training programs that do not advance the cause of the company People may be
trained in skills they already possess the training budget may be squandered on rest and
recuperation sessions, where employees are entertained but learn little in the way
required job skills or job knowledge, or the budget may be spent on glittering hardware
that meets the training directors needs but not the organizations.
It is also essential to analyze the organizations external environment an internal climate.
Trends in the strategic priorities of a business, judicial decisions, civil rights laws, union
activity, productivity, accidents, turnover, absenteeism, and on the job employee behavior
will provide relevant information at this level.
However, assessing the needs for training does not end here. It is important to analyze
needs regularly and at all three levels in order to evaluate the results of training and to
assess what training is needed in the future.
At the organizational level, senior managers who set the organizations goals should
analyze needs.
At the operations level, the managers who specify how the organizations goals are
going to be achieved should analyze needs.
At the individual level, the managers and workers who do the work to achieve those goals
should analyze needs, keeping in mind that performance is a function both of ability and
motivation.
A talent inventory to assess current human resources and to analyze how they are
currently being used.
A human resource forecast to predict future HR requirements.
Action plans to enlarge the pool of people qualified to fill the projected vacancies
through such actions as recruitment, selection, training, placement, transfer, promotion,
development and compensation.
Control and evaluation to provide feedback on the overall effectiveness of the human
resource planning system by monitoring of HR objective.
.
Manager HR
Assit Manager
HR
Sr. HR
executive
HR executive
HR Assistant
Functions of HRM
Department
Recruitm
ent
T&D
Recruitment
There are two types of recruitment
Permanent Recruitment
Rewards
&
Benefits
Compensa
tion
Time
Managem
ent
Contractual Recruitment
Permanent Recruitment:
Management Level
Management Level
Management Trainee
M6
Merchandiser
Assistant Manager
M5
M4
Deputy Manager
M3
Manager
M2
Senior Manager
M1
S4
Semi-skilled Worker
S3
Skilled Worker
S2
Supervisor
S1
T&D
Off Job Training
On job Training
College Visits
Internships
Seminars, Lectures, functions etc.
Rewards
Performance Reward System PRS
Unit of the Month
Best Final Inspector
Best Inline Inspector
Best Cutting Inspector
Promotions
Overtimes
Types of leave
The types of leave available to employees are,
1) Causal leave
2) Sick leave
3) Earned leave
4)Leave without pay
5) Maternity leave
Casual leaves:
Every employee will be eligible for ten days causal leave in each calendar year.
1)Causal leave can be granted on pro-rata basis, proportionate to the length of
service.
2)Un-availed causal leaves shall lapse automatically at the end of every calendar
year.
3)Causal leave cannot be combined with any other type of leaves except sick leave.
4)Causal leave can be availed for a maximum period of 3 days at one time.
Sick leaves:
Every employee will be eligible for eight days sick leave in each calendar year.
1.Sick leave will be granted on pro-rata basis, proportionate to the length of service
2.Sick leave exceeding 2 days must be supported by a medical certificate from a
registered medical practitioner.
3.Sick leave may be Accumulated up to a maximum of 16 days
Earned leaves:
Every employee will be eligible for earned leave as follows
Workers-14 days
Staff-15 days
1.Earned leave will be due only after completion of one years continuous service
with the company from the date of joining.
2.Earned leave shell be credited to the employee account at the end of each year of
service
3.It is incumbent for management staff in grade M-12 and above to avail a
minimum of 15 days earned leave in a calendar year.
4.Earned leave lying to the credit of an employee will be encashed at the time of
separation for the company for employee up to Grade-12.
Maternity leaves:
1)Female married employees who have been employed for more than one year will
be granted maternity leave.
2)Maternity leave of 12 weeks, 6 weeks each before and after the delivery will begranted
on production of medical certificate from a registered medical practitioner
Leave Encashment
Sick Leaves
Casual Leaves
10
Encashment Leaves
14
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Other Benefits
EOBI (Employee old age benefits & Insurance
Death Grants
Marriage Grants
Scholarships
Group Insurance
Health Insurance
Time Management
Card Scanning system
Keep the daily attendance of employees.
Make the settlement of the resigned employees to be further proceeded to the H.R
Department.
Gives the half leaves or temporary leave for about 1 to 2 hours
Other Responsibilities
Grievance Handling
Charge Sheet
Administration Department
Security
House Keeping
Transport
Mechandising Department:
It is bridge between customer and factory. It is performing the task of marketing in
MTM. The objective of merchandising department is to retain the existing customers, and
keep continuously communicate with them and also to attract new customers.CEO and
Marketing Manager attend different exhibitions all over the world to attract these
sourcing companies. All the sourcing companies are the Customers of the Masood
Textile Mills. Merchandisers are the representatives of Masood and they keep contact
with customers. Merchandisers also try to acquire new customers and contracts through
personal selling.
Associate
Merchandising
Asst.
Merchandiser
GM. Marketing
Merchandiser
Management
Trainee
Asst.
Merchandiser
Working of Merchandising:
A merchandiser receives a product package (ppk) which contains time line, fabric detail,
article description (polo, Henley, crew neck) and accessories detail. After receiving the
PPK the merchandiser sends it towards PPC department that checks availability, price,
quantity and quality. After that the merchandise accepts the order and then send them
proto sample. Price negotiation will start. Price is determined on two basis either it is
customer based or it is product based. Customer based pricing is done by keeping in view
the market position of the customer .The factors which they take into consideration are
brand popularity and the income level of the ultimate customer Product based pricing is
done by the specifications of the product. After accepting the proto sample fit sample is
sent to buyer and after this clearance production in bulk is started.
Functions of Merchandising:
Market analysis
Data analysis
Sourcing
Procurement
Product planning and R & D
Pricing
Distribution
Communication
Visual
There are main two main products used in the seasons:
Replenishment products
Seasonal products
Product Package
PPK involves 4 types of informations
Fabrication
CMT
Quota
Shipment
Fabrication
The type of fabric that will be used to make the product different types of fabric are used,
like single jersey, fleece etc.
CMT
CMT stands for cutting manufacturing and trims .
Quota
Quota is fixed for different countries according to the garment style.
Note: with the implementation of WTO, quota system has been deleted in the practice
of import and export, so it will no further exist.
Shipment
Shipment includes the ex factory and the ex country dates that are given by the
customers.
Whenever the merchandiser receives the product package following things are done:
Costing
Proto sample
Fabric development
Accessories development
By boats
By air
Mode of transaction
When the merchandiser negotiate with the customer he demands letter of credit and bank
guarantee etc from the customer
Countries of Export:
MTM is making a good effort to increase the market share. Today company is exporting
its products to many countries like,
USA.
Hong Kong
Japan
Germany
Malaysia
Singapore
Korea
Thailand
Producti
Merchandisi
ng
on
PPC
Planning
Costing
Control
Functions of PPC:
Senior Deputy
Manager
Deputy Manager
Assistant Manager
Senior Officier
PPC Officier
Working of PPC
Buyer sheet or product package received by merchandiser that PPK includes
GSM requirement
GSM is given by the customer it is gram per square meter .if GSM is more less
pieces are made. if the GSM is less more pieces will be made.
Costing steps
Costing
Time lines
Fabric planning
Unit planning
In costing you have to see each and everything
Type of fabric
Finishing standards
Yarn quality
Knitting charges
Recipe cost
The cost details are given to the merchandiser and he communicates with the
customer. if the price is acceptable then the order is given
Then PPC has to plan that order it will take into consideration three things
Material planning
Machine availability
Unit planning
Material planning
Material planning includes the fabric plan and the pattern availability details
about the accessories etc.
Machine availability
Then PPC has to see that machines are sufficient to run the purchase order.
Unit planning
The purchase order will be run in which unit so we have the production
capability so we have skilled labor to perform the task.
Production
There are total 12 stitching units with over 1,749 stitching machines, manned
with the most skilled and expert operators, Masood is capable of producing about
150,000 dozens approximately per month versatile garments ranging from basic
to high fashion, mens, womens and kids with maximum flexibility in size and
color assortments. The Quality control and Quality Assurance departments are in
place to make sure the companys objective of zero defect. Computerized Bar
coding and Back Track systems provide Masood 100% predictability and tracking
performance. 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 the production.
Management hierarchy
Production departmnet
Senior
Production
Unit
Production
Production
Manager
Manageemen
t Trainee
Assitant
Production
Production flow
Production department receives samples from the merchandising department the
production department finalize the flow by keeping that sample in mind. The task
is to improve productivity and to have the maximum output
Process
Production process Is as follows:
1. Stitching (Process flow)
2. Clipping
3. Ironing
4. Finishing
5. Packing
6. Shipment
Setting of flow
Arrangements of machines
Checking of induction
In line inspectors
To check the garment is stitching quality operation wise.
Kinds of needles
No. 9 to 14
Kinds of Machines
Flat lock
Button Hole
Bar take
Heat Transfer
Feedo
Mini Cylinder
Auto trommer
Zig Zag
Button Attach
Cylinder Bed
Elastic Attach
Overlock
Lockstitch
Finishing flows
Pressing
Final inspection
Super inspection
Specs
Packing
Packing procedure
After finishing the garment goes in packing, ID labels Stickers are pasted
Garments are folded packed in ploy bags. After that packed in master poly bags.
Assorted packing
Solid packing
Catalog packing
Assorted packing
Color is same but different sizes ratio are packed together, Or
Size is same but different sizes ratio are packed together
Solid packing
Same color and same size
Solid by color (Color remains same)
Solid by Size (Size remains same)
Catalog packing
Different sizes and different color, say according to the requirements of the buyer,
each bundle will have its own specification and packing details
Production problem
Quality:
It is a standard achieved by process to render defect free product.
Quality control:
Implementation of process to achieve the required standard.
Quality assurance:
Preventive measures taken to make defect free product.
Responsibilities of quality assurance:
There are three responsibilities of quality assurance.
(1) Monitoring the system
(2) evaluating staff involved
(3) assuring quality of product
Hierarchy of Department
Manager Quality
Assurance
Deputy Manager QA
Assistant
Manager
Internal
Audit
Assistant
Manager
Final
good
QA Officer
QA Officer
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Industrial engineering
Industrial engineering is that branch of engineering, which deals with the Productivity
increases the using all the available resources. These resources are following.
1.
Men
2.
Materials
3.
Money
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4.
Machine
5.
Methods
6.
Systems
7.
Land/space
Productivity:
It is defined as the ratio of output and input i.e.
Productivity = Output / Input
From the above formula .it is very clear that one or the combination of the following ways
can increase productivity:
(a) Decreasing input, while keeping the output same.
(b) Increasing output, while keeping at the input same.
(c) Increasing output appreciably with slight increase in the input.
(d) Decreasing output slightly with significant decrease in input.
Scope of I.E.
Industrial engineering techniques are applicable everywhere, starting from a small
Office, home, training places, small industry to a large industry.
It helps in:
Better layout planning.
55
Advantages:
Managing extra work in the same available space.
Vacating extra premises got on rent.
Increased output with the same manpower and machines.
Increased quality due to better managing/methods
Reduced throughput /cycle time, using refined layouts.
Reduced crises-cross movement of men and materials
Less W.I.P, using better systems (line lay out)
Bette5r money circulation, as less capital tied up in W.I.P.
Less material wastages, as no place to hide.
56
Stores
There are three stores in MTM.
Main store
Fabric store (Stock pledge)
Shipment store
Main Store:
There are two types of things, which come under main Store.
1. General:
Stationary, machine parts, maintainace and sentry etc.
2. Accessories:
Buttons, thread, zips, labels, and needles etc
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After approval
Store
issue
Forward
Quality
check
by
Goods
Received
Inward
Gate
GRN
take
over
Purchase
General
Main
store
After approval
Store
issue
Procurement
Quality
control
Goods
Received
Inward
Gate
Pass
GRN
take
over
Acc.
Demand
Accessories
Shipment store:
As it is evident from the name, purchase orders which are ready to be shipped, are store
here. In Masood when production 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. All the information regarding the Quality checks of shipment is done here. On the
day of shipment the boxes are loaded on trucks and final entries are stored in computer.
The process of the shipment store is
Receiving
Racking (customer wise)
Receive to quality
Audit for QA
OK report after audit
Fabric store:
The PPC department sends demand of fabric to fabric store according to plane of party
order, which is required by buyer. When the fabric reached at main gate then received by the
fabric store, on the gate only the weight of the fabric is checked. Inspection of the fabric is
handled in mills in Fabric Inspection Department (FID). When fabric is reached at gate then
interword gate pass is made. Then fabric shifted into store in the racks and racks are
according to customers. When the fabric is rejected it come first in store then sent to mills
by making Outward Gate Pass (OGP)
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59
60
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Financial Analysis
62
In 2008 Deffered income on sale and lease back of operating fixed asset are 4,891 and in
2009 it is decreased by 2,515
In 2008 total equity and liabilities are 8,234,421 and in 2009 it rose to 9,621,739
In 2008 non current assets are 3,047,941 and in 2009 it rose to 3,166,615
And current assets in 2008 are 5,186,480 and in 2009 it is increase by 6,455,124
So total assets in 2008 are 8,234,421 and in 2009 it is increase by 9,621,739
63
Net cash generated from operations was 981,748 in 2008 and in 2009 it decrease to 632,821
In 2008 net use in investing activities is 415,397 and in 1009 it is decrease to 370,513
Net cash use in financing activities in 2008 was 1,458,832 and in 2009 it is decreased to
78,537
So cash at the end of the year of 2008 was 137,255 and in 2009 it is increase to 321,026
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These are the local competitors at the textile city but MTM face in international market so
their competitors are the CHINA, INDIA and BANGLADASH in these countries labor is so
much cheaper available, so they sell their product in the international market cheaper as
compare to Pakistan.
Core competence:
The core competency of the MTM is it IT based system and quality control.
Quality products
Skilled labor
ISO certified
Weaknesses
N- corporative culture
External factors
Opportunity
Globalization
Threats
Low price offer other competitors just like china & India
Globalization
PEST Analysis
68
Political situation:
The political situation of Pakistan is not satisfactory and unstable. Rapid change in
the Govt. and the change of the policies of the previous govt. by the new govt. abruptly
effect the Pakistans political situation. Due to these entire factors the foreign investor
hesitates to invest in Pakistan.
Govt. should device such policies that are beneficial for the local exporter as well as for the
investors.
Economic Situation:
The economic condition of Pakistan is not suitable for investment. Market growth
rate is very low and new investors hesitate to invest. Increasing inflation rate
due to heavy loan make the business environment strict. Actually increase in
inflation rate leads to high cost of production so our country products sell out
at a high price but with low margin.
Social Situation:
The change in the lifestyle of the people affects the growing demand of the MTM
products. The change in the lifestyle and needs in different demographics also affect the
demand of the customers.
Due to all these changes MTM is performing excellent for the excellence of organization as
well as for the customer.
Technological Factor:
Technological advancement in all the sectors of the country has changed the entire
socio-economic environment. Especially textile sector has incorporated technological
development and advancement in their organizations.
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Suggestions
Need to develop a culture of cooperation and teamwork. For this purpose a
revolutionary commitment from higher management is required at this time,
otherwise MTM may not be able to cash the benefits of quota elimination.
The misbehavior of some responsible managers with the working force is creating
unrest and feelings of being treated like slaves among the workers. For the purpose
of improvement in this sector the line management should be trained and must be
educated how to behave the workforce.
Decentralization of authority should be there. With the active participation of all the
management level employees in the decision-making is fruitful for MTM.
Employees should be encouraged to come up with revolutionary thoughts.
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