Beruflich Dokumente
Kultur Dokumente
(TO BE A MARKET LEADR THEN TAKE THE FIRST STEP TOWORDS CHANGE OTHER WISE YOUY CONT MAINTAIN YOUR POSITION IN MARKET) (ALI,
2010)
COMPANY BACKGROUND:
Packages Limited was established in 1957 as a joint venture between the Ali Group of Pakistan
and Akerlund & Rausing of Sweden, to convert paper and paperboard into packaging for
consumer industry.
Over the years, the Company continued to enhance its facilities to meet the growing demand of
packaging products. Additional capital was raised from sponsors, International Finance
Corporation and from the public in 1965.
Packages commissioned its own paper mill in 1968 having production capacity of 24,000 tones
of paper and paperboard based on waste paper and agricultural by-products i.e. wheat straw and
river grass. With growing demand the capacity was increased periodically and in January 2003
was nearly 100,000 tones’ per year.
Since 1982, Packages Limited has a joint venture with Tetra Pak International in Tetra Pak
Pakistan limited to manufacture paperboard for liquid food packaging and to market Tetra Pak
packaging equipment. In 1993, a joint venture agreement was signed with Mitsubishi
Corporation of Japan for the manufacture of Polypropylene films at the Industrial Estate in
Hatter, NWFP. This project, Tri-Pack Films Limited, commenced production in June, 1995 with
equity participation by Packages Limited, Mitsubishi Corporation, Altawfeek Company for
Investment Funds, Saudi Arabia and general public. Packages Limited owns 33% of Tri-Pack
Films Limited's equity. In July, 1994, Coates Lorilleux Pakistan Limited, in which Packages
Limited has 55% ownership, commenced production and sale of printing inks. In 1996,
A joint venture agreement was signed with Print care (Ceylon) Limited for the production of
flexible packaging materials in Sri Lanka. This project Packages Lanka (Private) Limited
commenced production in 1998. Packages Limited now owns 77% of this company. In 1999-
2000 Packages Limited has successfully completed the expansion of the flexible packaging line
by installation of new rotogravure printing machine and the expansion of the carton line by a
new Lemanic rotogravure inline printing and cutting creasing machine. In addition a new 8 color
flexo graphic printing machine was also installed in flexible packaging line in 2001.
Packages Limited has also started producing corrugated boxes from its plant in Karachi from
2002.
Packaging Limited was born out of a dream to set up in Pakistan industries of excellence based
on local raw material and talent. Packages Limited is a leading packaging manufacturing
company of Pakistan. It is the sole largest industry in Pakistan serving about 35% needs of the
country. Syed Baber Ali Shah, who was the first managing director of Packages Limited, went to
Sweden in 1954 to negotiate the contract with AB Akerland & Rausing of Sweden. AB Akerland
and Rausing had been the leading paper converters in Europe. Pakistanis needed technical
collaboration with their Swedish partners. In the beginning, the first problem was the selection of
the site. Finally, Lahore was selected due to the following reasons:
A B Akerlund & Rausing packaging company brought machinery and expert technicians while
the Ali Family provided the necessary capital, land, labor, local expertise and management. Syed
Baber Ali was the first Managing Director.
Packages Limited started operating in May 1957 with a paid up capital of Rs. 4.94 million as a
joint venture between the Ali group and Akerland & Rausing of Sweden. Initially, Packages
produced cartons for the cigarette, tea, confectionery, soap, pharmaceutical products and other
consumer products. These cartons were produced from paper and board supplied from mills in
Chittacong, Khulna, Charsadda and Peshawar. However the quality and quantity of paper and
board supplied was inadequate. Over the years, the company continued to enhance its facilities to
meet the growing demand of packaging products. Additional capital was raised from sponsors,
International Finance Corporation and from the public in making the total paid up capital to Rs.
31 million in 1965.
As a first step, Packages commissioned its own paper mill in 1968 having production capacity of
24,000 tons of paper & paper board based on waste paper, agricultural waste, wheat straw and
kahi grass. As the demand continued to grow, it led the company to expand and by the end of
1998 its annual capacity was increased to 50,000 tons of paper & board and corresponding
converting ability.
Since 1982, Packages Limited has a joint venture in Tetra Pak Pakistan Limited with Tetra Pak
International to manufacture paper for liquid food packaging and to sell Tetra Pak packaging
equipment. After Tetra shape, it also introduced brick shape packing. Both shapes are very
popular among liquid preservation industries. The main industries covered by Packages Limited
are, Tea Industry, Tobacco Industry, Food Industry, Pharmaceutical Industry, Sweets &
Confectioneries, Soap Industry, Shoe Industry, Tissue Industry…
In tetra Pak Pakistan Limited Packages Limited has 45% shares, 6% shares owned by Syed
Baber Ali Shah and 49% shares owned by Tetra Pak International.
Since 1957, Packages has been producing inks for its own consumption. In 1993, the company
agreed to form a joint venture with equity participation from Coates Lorilleux, world’s second
largest printing ink manufacturer to produce inks for Packages Limited and the general market.
Packages Limited own ink manufacturing facilities now transferred to new company, “ Coates
Lorilleux Pakistan Limited”. In July 1994, Coates Lorilleux Pakistan Limited; in which Packages
limited has 55% ownership, commenced production and sale of printing inks.
Also in 1993, a joint venture agreement was signed with “Mitsubishi Corporation of Japan” for
the manufacturing of polypropylene films at the industrial estate in Hattar, NWFP. This project,
Tri-Pack Films Limited, commenced production in June 1995 with equity participation by
Packages Limited33%, Mitsubishi Corporation, Altawfeek Company for Investment funds, Saudi
Arabia and general Public.
Another important service department of Packages Limited is its “Power Plant”. In 1967they set
up 6 MW power plant, but to ensure a continuous and dependable supply of power for its
production lines, Packages has also established its own 10 MW power plant in 1991, the cost of
which was 180 million rupees. Packages Limited save a lot of money in this regard. For
example, if they get power from WAPDA, thenWAPDA charge more than 6 rupees per unit but
the expenses of its own production are almost 2 rupees per unit.
In the field of consumer products, Packages Limited has shown tremendous potential and
commendable talent. Consumer Product Division provides 12% share of the Packages total
sales. The consumer products of the company are “Rose Petal Tissues”. The production of Rose
Petal was first introduction of tissue paper industry in Pakistan. Though Packages has introduced
so many brands of tissue. Rose Petal is now the market leader of tissue paper industry in
Pakistan. Rose Petal has more than 80% share of tissue paper industry in Pakistan. Other
consumer products are paper Cups, paper Plates, Paper Napkins, Paper Hot Cups and Wet tissues
of Rose Petal have been introduced in the market in 1992.
Now Packages Limited is exporting its managerial skills & technical expertise to the third world
countries like Indonesia, Tanzania, Kuwait, Saudi Arabia, Nigeria, Zambia, Somalia & Russia. It
has also started the export of tissues to Iran, Bangladesh, Sri Lanka, Indonesia, United Arab
Emirates and Maldives.
Packages Limited has a large workshop. This workshop is capable of making, repairing and
replacing the damaged parts. The RD & Control Department were also established to ensure the
quality and standard of the products. Starting with a work force of 500 workers, now Packages
Limited is having 2674 employees. In this regard, a separate Personnel Department is there, to
look after the problems of the workers. Today Packages Limited is considered to be a leader in
Packaging field in Asia. Packages Limited has established an Effluent Treatment Plant because it
is concerned about the environment and wants to keep it clean. Packages have completed the
balancing, modernization, replacement and expansion program, which began in 1994. This has
enabled the company to minimize capacity constraints and improve quality to meet local and
foreign competition as well as improve its environmental protection facilities. (Pakages.com,
2010)
Nowadays, some of the most pervasive and invasive information systems that are being implemented
By and made use of in organizations are those referred to as Enterprise Resource Planning (ERP)
Systems. The launch of ERP systems have spawned a multi-billion dollar global supplier and Consulting
industry. By adopting a process orientation and consequently integrating business processes by means of
pre-engineered packaged software applications, the stated goals of adopting ERP systems are to obtain
organizational benefits such as lower inventory costs and shorter cycle times.
RISK ASSESSMENT:
Selection of ERP:
Analytic hierarchy process (AHP) is a method widely used for this kind of complex decision-
making problems. A multi-attribute ERP selection decision model is introduced based on the
AHP methodology. The model is illustrated with an example and managerial implications are
discussed. Based on the AHP, Expert Choice (EC) is decision support software that reduces
complex decisions to a series of pair wise comparisons and then synthesizing the results. In this
study, EC is used to perform the ERP selection procedure, provided the objectives and criteria.
• Following parameters must keep in mind while selecting ERP.
Figure # 1:
Vendor
ERP
After Technology
SArelated
Flexibility User related
Selection
Customization
Sales
AXAP Support & related
Implement
User
Training
Friendliness
TA
P ability
System Requirements
Reporting
Maintenance & Analysis
Real-time Changes
Features
Cost
Back-upCredentials
Integration
Vendor System
with Other
Internet Integration
Applications
Financing Options
In order to solve the “ERP Selection” problem with Expert Choice (EC) software, we need to
structure the hierarchy first. While building the hierarchy tree, including more than nine elements
in any objective group is not considered since it is cognitively challenging for humans to
evaluate more than nine factors at a time. Once the model is built, the next step is to evaluate the
elements by making pair wise comparisons.
Figure # 2
ERP & IT strategies
Enterprise resource planning (ERP) is a complete integrated computer software based program
which combines all departments through a central integrity. All department save their data in
SAP, an ERP software. Packages spent RS 20 million on this system. This department maintains
all system of SAP.
ERP system is a combined module of software which integrates all departments of the
organization. Packages Ltd. Uses ERP system named as SAP.
Figure # 2:
ERP
SupplySystem
Accounting
Production
Sale
administr
Custo
and
chainand
Distribut
Huma
management
finance
marketing
ation
mer
ion,
n
Wareho
Resou
use
rce
SAP is software company in Germany which produce ERP software. SAP is also an ERP
program which was designed and customized by Siemens Electronics Company for packages.
Packages has been licenced for the use of SAP. SAP is a computer software which combine all
departments of packages Ltd. With a central integrity to inter-link with each other
Material Management
• Purchasing
• Inventory management
• Invoice verification
• Physical inventory
• Valuation
• Material planning
• Service entry sheet
• Foreign trade
Financial Accounting
• General ledger
• Account receivable
• Account payable
• Banking
• Fixed assets
• Reconciliation
• Special purpose ledger
• Fund management
• Travel management
Production
• Production control
• Capacity planning
• Cost control
• Material forecasting
• Demand management
• Bill of material
• Work center
• Routing
• Production resource tools
• Engineering change management
• Master data (which cannot change with out authorization)
Production process
• Master data
• Process order
• Production campaign
• Process planning
• Process management
• Product cost planning
• Plant maintenance
• Technical objective
• work center
• maintenance planning and process
• information system
Service management
• Technical objective
• Work center
• Warranty
• Contract and planning
• Customer interaction center
• Service process
Quality management
• Quality planning
• Quality inspection
• Quality certificates
• Quality notification
• Test equipment management
Project management
• Basic data
• Operative structure
• Planning budgeting
• Execution
• Information system
Environment management
• Production safety
• Dangerous goods management
Treasury
• Cash management
• Loan
• Cash budget management
• Market risk
• Treasury management
• Money market
• Foreign exchange
• Securities
• Information system
Controlling
• Cost elements
• Cost control
• Actual costing
• Material ledger
• Internal order
• Profitability anaylises
• Projects
• Product cost planning
• Appropriate
• Request
• Program
• Internal order
• Investment projects
• fixed assets
Special web has been made for web service-based ERP. Limit of web is that, employee can work
online when they are sitting in offices. But the future of sap is that employee can work in their
home. They will only connect their computer with internet and by using web-based ERP they
will be able to do their work in every where the internal web-based ERP system –SAP is
available in internal web site