By:

Ateeba Abid

MBA (HRM)

Internship Report submitted in partial fulfillment of The requirements for the degree of

MBA

Department of Business Administration

GC University, Faisalabad

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Masood Textile Mills

CERTIFICATE BY THE RESEARCH SUPERVISOR

I certify that the contents and form of internship report submitted by Mr./Mrs………………………………, Roll No………….. has been found satisfactory and according to the prescribed format. I recommend it be processed for evaluation by the External Examiner for the award of the degree.

Signature………………….................

Name: ..............................................

Stamp………………………. Chairperson Dean, Faculty of Management Sciences, GC University, Faisalabad.

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Masood Textile Mills

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Masood Textile Mills

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Masood Textile Mills

I would like to dedicate this project report

To my beloved parents

and

respected teachers,

because

whatever i am today is all due to their prayers

and

their support

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Masood Textile Mills

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 well-

known 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.

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Masood Textile Mills

Acknowledgement

All praises and thanks from deepest core of my heart are for the ALMIGHTY ALLAH. The beneficent and the merciful, whose blessing enables me to complete this internship report. With all the love, I have in my heart and soul, with all the respect i have in my mind and i praise for the great personality of the world HOLLY PROPHET MUHAMMAD (PBUH), the city of knowledge, torch of guidance who has guided his followers to the knowledge from cradle to grave.

I am pleased to present this report on the successful completion of my internship at Masood Textile Mills, Ltd (Apparel Division). I am very thankful to every person that enables me to present this report which is the result of my hard work, struggle, determination & delegation (to present it up to the best of its requirements) and blender of co-operation (of the management, supervisors, operators, inspectors, clippers, helpers, machine mechanics, industrial engineers, seniors & the “T & D” of HR), definitely it is a Team Work. I wish to acknowledge a lot of people for their valuable contribution to this report.

I am certainly indebted to my Management, for providing us such a great chance to learn. I would also like to extend my gratitude to my honored, valued Sir Qamar Ali (Research Supervisor), who have planned our internship session and help us in every step to complete our internship successfully. I could not forget his affectionate supervision and invaluable knowledge which he contributed to work in a multitude of ways.

Last but not the least, I express my admiration to my friends and parents. It was only due to their moral support that enables us to complete my work efficiently and proficiently.

May Allah give them His blessings along happy life (Amin)

Ateeba Abid

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Masood Textile Mills

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

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Masood Textile Mills

11.Financial Department........................................................................................................ 59

a. Balance sheet........................................................................................................... 62

b. Cash Flow Statement............................................................................................... 64

c. Profit and Loss Account........................................................................................... 65

12.Marketing Analysis............................................................................................................ 66

a. SWOT analysis........................................................................................................ 67

b. PEST analysis.......................................................................................................... 69

13.Conclusion & Recomendations......................................................................................... 70

14.Bibliography....................................................................................................................... 72

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Masood Textile Mills

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.

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Masood Textile Mills

Objectives of the study:

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

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Masood Textile Mills

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 company’s 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

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Masood Textile Mills

AWARDS

FTL Accuracy of Information and Compliance Supplier award (2006)

FTL has awarded MTM "Accuracy of Information and Compliance Supplier Award ".

JCPenney Purchasing Partnership Award (2004 , 2006)

Posted on 12-April-06

JCPenney has awarded MTM "Purchasing Partnership Award".

UBL - UBL Award

Posted on 12-April-07

Divisional Quality Award 2005

Posted on 25-May-06

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Masood Textile Mills

JCPenney has awarded Masood "Divisonal Quality Award".

WRAP - Worldwide Responsible Apparel Production (2004, 2005, and 2006).

Posted on 25-May-06

Masood Textile Mills Ltd. is certified by the WRAP Certification Board.

Quality Control Award 2005

Posted on 21-May-06

Fruit of the Loom has awarded Masood "Quality Control Award 2005".

Operational Excellence Award for 2002

Posted on 23-Jul-03

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Masood Textile Mills

JCPenney has awarded Masood "Operational Excellence Award for 2002".

JCPenney has awarded Masood "Best Quality Award for 2002" Certificate.

"Quality Recognition 2001-2002" Certificate

Posted on 30-Nov-02

Russell Corporation has awarded "Global Quality Recognition 2001-2002"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.

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Masood Textile Mills

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 world’s best apparel company

Organizational Values

Trust…….Integrity…….Respect

Quality Policy

1. Customer’s satisfaction

2. Zero Defect/Never Ending Improvement

3. Total Quality Management

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Masood Textile Mills

Main Cuctomers of MTM:

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

famous brands in the world.

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Champion Chaps Calvin Klein Dockers

GAP Hanes JCPenney Levi's

Nautica Polo Polo R.L Russell

Speedo Tommy Hilfiger Tom Tailor Vantage

Sears Jockey Guess Foot Locker

Masood Textile Mills

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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Masood Textile Mills

Vertical Operations:

Spinning

Knitting

Fabric dying Mills

Finishing

Laundry

Cutting

Stitching

Finishing Apparel Division

Packing

Organisational Hierarchy:

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Chief Executive Officer

Masood Textile Mills

Employees

Permanent Employee

Mills 6500

Garments 9515 15015

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General manager

Assistant Manager

Deputy Manager

Manager

Senior Manager

Senior Officer

Officer

Management Trainee

Masood Textile Mills

Piece Rate Workers

Mills 4000

Garments 4529 8529

TOTAL 23544

Departments

Departments can be distinguished into three categories

Operations, Services & Finance

1. Operations

• Production Planning & Control

• Industrial Engineering

• Cutting

• Production

• Quality Assurance

2. Services

• Human Resource

• Information Technology

• Merchandising

• Purchase

• Quality Assurance

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Masood Textile Mills

• Product Development

3. Finance

• Accounts

• Inventory

APPAREL DIVISION Organizational Structure

Flow of Apparel Division

• Marketing

• Merchandising

• PPC

• Cutting

• Induction

• Production

Sewin to Pack

• Quality Control

• Quality

Assurance

• External Audit

• Shipment

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Organizational Structure of Apprel Division:

General Manager

Div. Manager Div. Manager

Production Manager

AP Manager

Unit Manager

Quality Control Manager

Packing Superv

Clipping

Superv

Finshing

Superv

Inline Superv

isor

Production

Supervi

Packing

Person

Inline Inspec

tor

Clipping

Person

Final Inspec

tor

Operators

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 director’s needs but not the organization’s.

It is also essential to analyze the organization’s 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 organization’s goals should analyze needs.

At the operations level, the managers who specify how the organization’s 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.

Human Resource Planning

Human resource planning is all about measuring the organization need to identify the numbers of employees and skills required to do those jobs. Further, an understanding of available competencies is necessary to allow the organization to plan for the changes to new jobs required by corporate goals.

At MTM, major changes according to economic and social environments are required purchasing new and additional office equipment to enhance efficiency e.g., computer hardware or software, coping with the recall of a defective product and dealing with the need for a new design e.g. new automatic rotary machine.

This suggests several specific, interrelated activities that together constitute an human resource planning system.

They include:

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.

.

Structure of the HRM Department:

　

Manager HR

Assit Manager HR

Sr. HR executive

HR executive

HR Assistant

Number of Employees working in HRM Department

Now I’ll discuss the personnel management of Masood textile Limited under various steps of Human Resources Management Masood Textile also knows this fact and has personnel department. Personnel Department of Masood Textile can be critically analyzed on the basis of various steps of human resources management process.

First I would like to describe the ware bouts of department. Department is situated in an old building which was constructed at the time of establishment of Masood Textile. There are about 100 personnel who actually handle the department’s affairs.

　

Major Functions of HRM department

Every organization whether it is a multinational conglomerates a small business, a religious institution or a government agency depends on people. Appropriate candidates for each job from chairman of the board to night shift janitor must be located either inside or outside the organization and they must be convinced by pay benefits and working conditions to take and keep the job. They must also be trained and motivated. Handling these functions is part of human resources management’s job.

Recruitment

There are two types of recruitment

Permanent Recruitment

Recruitment

T & DRewards

& Benefits

Compensation

Time Managem

ent

Functions of HRM Department

Contractual Recruitment

Permanent Recruitment:

• Management Level

• Non Management Level

Management Level

Management Trainee M6

Merchandiser M5

Assistant Manager M4

Deputy Manager M3

Manager M2

Senior Manager M1

Non Management Level

Unskilled Worker 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

Compensations and Benefits

Leave Policy

To grant different kinds of leave to its employees in order to facilitate them to

attend, to their domestic and social responsibilities.

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 year’s 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.

• Leave without pay:

There is no provision of leave without pay in Law. How ever extra-ordinary leavewithout

pay may be granted at the discretion of the competent authority in specialcircumstances

involving absence from duty

• 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 8

Casual Leaves 10

Encashment Leaves 14

32

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

Support of HR to other Departments

The H.R Department is the key strength of any organization in motivatingemployees, managing HRMIS system, dealing external affairs, handling with eachdepartment’s performance, making promotions etc…..so my major area was HumanResource Department.

Through job rotation policies and by extensive interaction with managers in all other functional areas. Unless these executives are perceived as equals by their corporate peers, their ability to make significant contributions to the firm will be diminished.

Require the senior HR executive to report directly to the CEO. At present this occurs in about 70 percent of companies nationwide. Consider whether any corporate resource is more important than its people. Ensure that the top HR officer is a key player in the development and implementation of business plans providing early warning regarding their acceptance and serving as the CEO’s window on the organization and as a sounding board.

Representatives from HR and line managers from the business unit generate key business strategies for the coming year. To do so, they identify major external and internal factors that may have an impact on the future of the business, together with future customer requirements.

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.

Hierarchy in Merchandising Department

GM. Marketing

Associate Merchandising

GM. Marketing

Asst. Merchandiser

Management Trainee

Merchandiser

No of Employees in Marketing Department

Mr. Tayyab Masood is General Manager of Marketing Department of Masood Textile

Mills Ltd. There are almost 103 numbers of employees working in marketing department.

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

Asst. Merchandiser

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 information’s

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

Shipment is done through two ways

• 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

Follow up by the merchandiser

Merchandiser is involved in the process from receiving the purchase order and payment

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

PPC (production planning & control)

PPC stands for product planning and control. As its name indicates its function i.e., to

plan a purchase order and control thereof. PPC is the bridge between merchandising and

production department. PPC department plays an indispensable role in a garment

manufacturing company. Its responsibilities start from the negotiation between

merchandiser and customer and ends on the shipment of PO. This department works on

the basis of 3M’s (Man, Machine, and Material).

There are three sections in PPC department.

• Planning

• Costing

• Control

Functions of PPC:

Production

Merchandising

PPC

Optimization of resources (man, machine, material)

Costing research and development(R&D)

Purchase order receiving

Capacity

Time line (time, action)

Fabric accessories (stitching and packing)

Fabric demand plan (lead time)

Accessories demand plan

Hierarchy of PPC Department:

PPC ( senior Manager)

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

• color and size breakdown

• what is the GSM required

• what are the finishing parameter

• garment wash or not wash

• size specs parameter

Color and size breakdown

It means that how many pieces are required . if color and size are not available .

Cutting cannot and consumption will not be accurate.

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.

Factory finishing standards

Factory finishing standards like torching, bowing, skewing, ph value, shrinkage,

color fastness.

Garment wash or not garment wash

How many washes the customer are requires when the garment is wash their

GSM and shade problem

Size specs parameter

Length size, color size arm holes, shoulders length etc. Margins are always kept

so that after washing it comes to the actual specs

If the garment is not to be washed there is no need to keep the margin.

Costing steps

• Costing

• Time lines

• To plan the accessories

• Fabric planning

• Unit planning

In costing you have to see each and everything

• Type of fabric

• Gram mage of the 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, men’s, women’s and kids with maximum flexibility in size and

color assortments. The Quality control and Quality Assurance departments are in

place to make sure the company’s objective of zero 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

Production Manager

Manageement Trainee

Unit 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

Production supervisor’s job responsibilities• Setting of flow

• Arrangements of machines

• Checking of induction

• Arranging number of operators according to flow

Assitant Production

• To meet the targets

In line supervisor job

To maintain quality and help in line inspector

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

From cutting department the pieces goes to the production

department for stitching. The pieces are stitched than it goes in

the enter. From here the stitched fabric goes to clipping to

remove the extra threads. Then the garment goes for finishing.

Finishing flows

• Pressing

• Final inspection

• Super inspection

• Specs

• Packing

Major Finishing faults

Stain (oil, dust)

Alter (skipping, stitch broken)

Rafu (small holes)

In final inspection stain, alter and rafu faults are removed. If

there is a major faults are send to reprocessing.

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.

Different types of packing

• 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

Shipment moves to store

ASN (advance security note)

Security sticker

Bar code sticker

Production problem

• Pieces are rejected

• Pieces are short

In both the cases short fall are sanded to PPC department

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

Acceptable Quality Level

AQL mean a standard of Rejection and acceptance defined by the mutual

concentration of buyer and seller, where they mutually decides size of the sample

and standard for rejection and acceptance

Overall Quality Level

OQL is a standard where garments are audited on their total rating, also called

average quality rating, after the AQL, when over percentage of rejection is checked it

should also comply with the standards already defined or decided in agreements.

Close Loop Corrective Action(CLCA):

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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

Industrial engineering provides us a systematic (step by step) organized way of increasing

productivity using simple techniques.

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.

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Designing work aids.

Re structuring an organization/ Re engineering

Methods improvement.

Training in better methods

Setting SAMs for the better methods

Problem solving using studies by scientific methods

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.

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StoresThere 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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Inward Gate Purchase Inward Gate Pass Acc. Demand GeneralForward Procurement Accessories

Main store Store issue Store issue

After approval GRN take over Quality controlGoods Received

After approval GRN take over Quality check by Goods Received

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

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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Receiving

Packing list (merchandiser

Audit for QA

Racking (customer wise)

Receive to quality

OK report after audit

Green slip only on audit

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Structure of Finance Department:

a) No of Employees

Masood Textile Apparel Division Finance Department consists of 38 employees at different

level with different job descriptions.

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b) Finance & Accounting Operations

o Maintaining the data base of accounts department

o Historical and periodical reports

o Presentation of Financial Statements

o Cash flow statements and cash disbursement

o Bank reconciliation statements

o Reconciliation with parities

o Variance analysis

o Production vs. shipment analysis

o Analysis on loss of profits

o Performance evaluation reports

o Yield analysis

o Monthly Stock reports of all units & stores

o Working of Compliance Audit.

Function of Finance Department:

Accounting Systems

Finance System

Use of Electronic Data in Decision Making

Mobilization of Funds

Generation of Funds

Allocation of Funds

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Financial Analysis

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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

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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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Sales in 2008 was 7,884,785 and in 2009 it is increase by 10,946,180

So Gross profit is also increased in 2008 it was 1,455,987 and in 2009 it is 2,094,764

Profit after tax in 2008 was 333,753 and in 2009 it is increased to 451,706

So earning per share in 2008 was 11.13 and in 2009 it is increased to 15.06

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Major Competitors of the Organization

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The major competitors of Masood Textile Mills Limited are as

1. Chenab Fabrics Limited

2. Amtex Limited

3. Arzoo Textile Mills Limited

4. Sapphire Textile Mills Limited

5. Crescent Textile Mills Limited

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.

Unique selling point (USP):

Quality control system is their usp.

SWOT Analyses of MTM

Internal factors

Strength

• Quality products

• Skilled labor

• Using modern and latest technology

• Back track system

• Highly educated management

• Vertically integrated system

• Using apparel management system

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• ISO certified

Weaknesses

• Having low space

• High turn over

• Communication gap between different departments

• N- corporative culture

• High production cost

External factors

Opportunity

• Exploring new markets

• Capturing European countries

• Can expand their operations and finding new market segments

• Using their own label

• Opening their outlets throughout the world

• Globalization

• End the quota system, now they expand the business

• Full potential of entertaining the local market

Threats

• Competition increase in that particular region.

• Depend only a few customers

• Low price offer other competitors just like china & India

• Politically instability in Pakistan

• Change government policies that are not in favor of textile industry

• Globalization

PEST Analysis

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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 Pakistan’s 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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Conclusion & Recomendations

Masood textile mill is the best knit wear in the world. In a short span of time, the company

has established a good image in the international market.

Although there is a tough competition in the international market, but Masood textile mills is

continuously going on its way to prosperity .The main customers of Masood are, JC

PENNY, SARA LEE.

They have established a good image in the mind of its customers. This is all due the

company’s high quality products. Company quality assurance department is so well

establish that some times the customers request the quality inspector to visit some other

company s where their other products are being manufactured, so the quality of that

company can be checked.

China, India, Bangladesh are the major countries, which have direct competition with

Pakistan. Due to quota system the company has accepted only limited orders. The main

advantage to the company is of its mills unit. The company has manufactured the fabric

itself, so the cost of the production of the company is much reduced. Raw material like

fabric and ribs are produce by itself.

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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Proper training at each level should be given to the employees.

Special incentives like bonus on Eid and on other special days should be given to the

employees.

Should hire well-educated, trained, and experienced young professionals.

There should be a complete follow up of ISO 9002 certification according to desired

quality standards.

The low capacity is generating problem for MTM. Due to low capacity the MTM has

to:

a. Procure Yarn from market, which cause delays, variations and high

prices.

b. Knitting from out door, that cause delays, variations and high prices.

c. Dying and finishing of the fabric from out door, that also causes the same

above mentioned problems.

The biggest problem that I think this low capacity is generating is extraordinary pressure on

the working force. This creates mental toughness and stress among the employees,

especially among the PPC department staff.

The solution to this entire problem is obviously the increase in capacity of production. But

this task should be done systematically through proper planning and after preparation of

feasibility report.

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