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First of all I am thankful to Almighty Allah who gave me the potential to study and work and Who helped me in every field of life. Then I am thankful to my respected teacher
Awan
whose help is like a torch of light for me in darkness. I am also very thankful to Mr. Malik General Manager of ATM and Mr.
ATM, for providing me the necessary information in completing my report. Thank you.
DEDICATION
BOARD OF DIRECTORS
The Board of Directors consists of following members
THE CHAIRMAN
CHIEF EXECUTIVE
MRS. NUSRAT JAMIL MIAN SARFRAZ AHMAD SHEIKH MIAN TANVIR AHMAD SHEIKH MIAN TAUQIR AHMAD SHEIKH MIAN FAROOQ AHMAD SHEIKH MISS. ZAHRA FATIMA JAMIL MUGHAL
SECRETARY:
MUHAMMAD QASIM
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INTRODUCTION TO ATM
Allah Wasaya Textile Mills Limited is located in the old and ancient city of Multan near the colony of Mumtazabad. The company incorporated its first unit in 1956 and the next unit was established in 1958 as a private limited company in the name of Mr. Allah Wasaya & Company Multan and later on the name was changed to Allah Wasaya Textile and Finishing Mills Ltd. Previously it was producing yarn as well as cloth but later on the production of cloth was stopped in 1978 due to old machinery and now the company is only producing yarn as its finished good.
SHARES
The shares of Allah Wasaya Mills are also floated in the stock exchange. The paid-up capital of the Mill is 8M and 25% of this is floated in the market. The remaining are in the hands of directors. The face value of the share is Rs.10 and now its market value is round about Rs.160.The Company paid Rs.29 per share dividend in the last year. The total assets of the company are of about Rs.500M.
AUDITORS
Hameed Chaudhary & Company, Chartered Accountants, is their auditors, which make the audit of the company every year.
BANKS
The company is having its business with following banks HABIB BANK LTD BANK AL-HABIB METROPOLITON BANK The company pledges its raw material inventory with these banks and the bank pays on behalf of the company.
SPINDLES
The company has two departments in which the spindles are fitted. The total number of spindles is 28192, which are working round the day for the fulfillment of the customers orders.
MARKETS
The company is selling its finished goods in the local market like Faisalabad and Karachi. The company is not yet exporting anything to foreign markets.
POWER PRODUCTION
Company has no power plant of its own, so they purchase the electricity from WAPDA. It has two generators, which are capable if producing the half of the original capacity in case of load shedding.
LOCATION
Location is very important factor in terms of operating cost, profit and the price on which the goods are offered. For an organization, location is important in two ways It should be near to your supplier so that your cost can be reduced and you can deliver prompt service to your customer. You should be near to your target market, means that you should be near to your customer in order to serve them.
LOCATION OF ATM
There are following factors for this organization to be at the present location
TRANSPORTATION
The Mill is located at a very good place because it is at the start of the city, so it is easy to get material from any transport at any time. It has no problem of congestion and every type of transport can come easily here.
Effective and efficient labor availability is another important factor in determining the location, so here ample labor is available for the organization at satisfactory prices. All types of labor i.e. skilled, semiskilled and unskilled can be easily made available when required.
ATTITUDE OF COMMUNITY
An Allah Wasaya textile mill is located near to the population and still the attitude of population is favorable because the unit is not causing any type of harm to environment. Its production unit is covered so there is no noise coming out of the premises of the factory and there is no pollution of smoke as well.
PROXIMITY TO CUSTOMERS
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The mill is located in the area that is near to the customers, which are in Faisalabad and Karachi. All type of transportation is available to them to deliver the yarn to the customers.
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CAPACITY
Capacity means how much an organization is able to produce from its resources. There can be two types of capacity
PEAK CAPACITY
It is the capacity of the company under ideal conditions.
EFFECTIVE CAPACITY
It is the capacity of the company under normal conditions. The peak capacity cannot be achieved because the circumstances or conditions are never ideal so companies want to operate at normal capacity.
CAPACITY OF ATM
ATM is using its 92% capacity and the remaining is the capacity cushion, which is for the purpose of protection in the period of excessive demand. The daily output of the company is round about 38,000 pounds of yarn on average, which is the result of about 250,000 bobbins produced daily. Capacity in terms of bags per day is about 370 bags of 20s Count, which contain about 9000 cones produced daily.
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FORECASTING
There is no special method of forecasting in ATM. They have to make forecasting at the time of purchase of raw material. Forecasting all the times depend upon the Judgement Method that is based on past experience i.e. the demand of last period. Forecasting is always the job of directors whereas the General Manager assists the directors about the decision of purchase. Forecasting is about How much orders will come in future What quantity will be coming from these orders What will be the specification in that requirement So on the basis of this forecasting they purchase their raw material. If there is excessive demand than forecasted and the raw material in the stock is finished then they make production by purchasing that much of raw material that is needed to satisfy that excessive demand. They wait for the cotton season to purchase raw material to store for the next period.
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PAYMENT TO SUPPLIER
Payment to suppliers can be made in two ways Payment is made in advance in the form of check or draft Payment can be made after the inventory is received It depends on the terms and conditions between the supplier and directors that in what way they make payment. These terms and conditions are set after the quality of the raw material is checked by the laboratory.
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INVENTORY MANAGEMENT
Inventory is the stock of items held to meet the future demand. Being the process focus firm ATM pays a special attention to the inventory management. The inventory of ATM mainly consists of raw material i.e. cotton bales and in the form of work in process. There is no concept of finished goods inventory because company produces according to the demand. But in some cases when there is a slump in the demand then finished good is stored otherwise not.
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To provide a hedge against the demand For the smooth running of the companys operations
SAFETY STOCK:
There is no concept of safety stock as there is already surplus of inventory.
EOQ:
There is no concept of EOQ. It all depends upon the management that how it views the changing environment.
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INVENTORY REVIEW:
The inventory review is made periodically. The period for the review is generally one month.
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PRODUCTION DEPARTMENT
There is a separate production department in ATM headed by the production manager. In production department the collaborative orientation of supervisors and engineers is of great importance be cause they are continuously involved in meetings and exceeding quality standards set by the management. The coordination between different departments of an organization is necessary for the smooth running of the business and for the fulfillment of customers orders and this phenomena is very evident in ATM. The production department of ATM is fully geared to any type of changes taking place in the environment. This is backed by the good machinery capable of producing finished according to the demand of customers.
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BLOW ROOM
When the production department receives the green signal for starting production then the raw material is issued to the blow room which comprises of different machines that converts raw cotton from bales to rolled Laps and the impurities are also removed from raw cotton in this department.
CARDING SECTION
In this section Lap sheet is converted to Sliver and remaining impurities & trash are removed. In this process short fibers are also extracted. The sliver is then transferred to drawing section.
DRAWING SECTION
In this section drawing, parallelization and mixing of fibers is done. Blending of different fibers e.g. polyester and cotton is also done in this department.
SIMPLEX SECTION
In this section material from previous department is converted to Roving.
SPINNING SECTION
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In this section Roving is converted to yarn which is rolled on plastic pipe called bobbin.
WINDING SECTION
In this section yarn on small bobbins is rolled on large bobbins called Cone which can be sold in the market. The yarn faults are also removed in this section.
PACKING
In this section the yarn is packed for delivery in large bags each 100 pounds in weight and these bags are sold to customers.
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QUALITY CONTROL
For a company to survive and measure its market share, maintaining quality is as essential as blood in the human body. The company, which maintains quality, has edge against those, which dont pay great attention on quality. Whether it is a manufacturing firm or a service organization, they have to take care of quality if they want to remain in the competitive market. ATM pays a lot of attention on quality because it has maintained its image as a qualitative organization. Quality is checked at every section and if it is found according to the standards then the next process starts otherwise first of all that fault is removed and then the material is sent to the next department. Quality check is important for the company as it allows the company to avoid process repetition so it saves Time, material, labor and customer dissatisfaction that van result in loss of market.
LABORATORY
ATM has its own quality control department in the form of a laboratory, which is responsible for checking quality after every process. The samples from every department are sent to the laboratory and these samples are then checked. If the quality is found correct, then the material is allowed to the next process.
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Lap Sliver Roving Bobbins Cones If any of them is not according to the standards, the process is repeated and the faults are removed.
WEIGHT CHECKING
The finished product (yarn) at last stage, checked for weights that should be according to the standards i.e. 100 pound per bag. If the weight of any bag is less than this standard weight, it is not sold until weight is correct.
SHADE CHECKING
Before packing the cones for sale, these cones of Yarn are checked in Ultraviolet Rays for correct shade. If the shade is according to the standards then these cones are sent to the storeroom, otherwise sent back. ATM has a separate section for checking the shades of these cones. It is a dark room
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with tubes of Ultraviolet Rays. The cones are set at the racks and these racks are sent to that room, for shade checking.
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AGGREGATE PLANNING
ATM is a process focus organization and it responds to the customers orders. They make planning based on the previous cycle. They are operating according to the Make to order strategy.
COMPETITIVE PRIORITIES
Competitive priorities are the companys unique characteristics that lead to success of the company. Every organization has some competitive priorities, which shows the progress of the company. ATM is operating according to the following competitive priorities Low cost On time delivery Consistent quality
PLANNING
Planning is made by directors with the help of different managers.
PLANNING OF WORKERS
It includes the planning of officers, supervisors and workers. Planning of officers is dependent upon the owners that how much they need and according to the need this staff is recruited and the duties are assigned on the basis of their skills. Every department is headed by a supervisor who is responsible for every thing happening in the department.
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PRODUCTION PLANNING
Production planning is done by production manager on the following basis Requirement of the market Availability of raw material Prices of raw material Prices of end product Aggregate planning is made considering the following factors 1. Cost of production of new order 2. Time to complete 3. Profit earning
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ATM is selling its Yarn to the domestic market like in Faisalabad and Karachi. There are some brokers who are the mean of contact between supplier and the buyer. When any weaving mill needs yarn, they contact the brokers to find the appropriate supplier. These brokers have contacts with the mills which are producing yarn, and when they have order to purchase they take samples from different suppliers and send these samples to the buyer who after examining them order the broker to purchase on their behalf if the quality is according to their standards. ATM is selling its finished good at a rate of Rs.56 per pound and earning high profits. The last years profit was Rs.57, 735,646, which is greater than the profit of the previous year.
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MACHINE TYPES
There are different machines in the factory, which are purchased from different countries and have different names. ATM has two production units in which different types of machines are installed.
UNIT 2
Trutzseller Germany Toyoda Japan
Toyoda Japan
Murata Japan
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2000 compared to the Net After Tax Profit of Rs.15, 331,281 last year.
The Mill was operated for 1,091 shifts during the year. The overall actual production when converted to 20s Count came to 11,130,950 Kgs compared to 10,229,596 Kgs on the same basis, last year. This shows the perpetual growth of the company.
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