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OM Project Mayfair Textiles

OM Project Mayfair Textiles

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Published by: Sheikh Usman Ahmed on Nov 19, 2012
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OPERATIONS OF MAYFAIR TEXTILES

.................................................................................................................... 5 Process Selection ................................. 13 Conclusion and Recommendations ............................................................................... 3 Cotton Spinning Sector .................................................................................... 9 Quality Management & Control............................... 4 Weaving and Made-up Sector ..................................................................................................MAYFAIR TEXTILE 2 Contents Industry Overview ....................................................... 12 Customer....... 6 Manufacturing Process ................................ Opening and Cleaning .................................................................................. 10 Supply Chain Management ............................................................................................................................................................ 4 Company Background ........................................................................................................................................................................................................................................................................................................................................................................................... 11 Purchase of Raw Material ......................................... 15 Appendix .................. 16 ................ 6 Stage of Batch Issue ............................ 12 Capacity Management .......... 13 Forecasting ............................................................................................................................................................. 11 Brokers ..................... 4 Competitor Analysis ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 6 Stage of Purchasing .................................................................................................................................................... 9 Cycle Time ............................................. 7 Stage of Dehumidification.............................................................................................................................................................................................................................................................................................. 8 Ring Department .................................................................................. 9 Benchmarking & International Standards............. 5 Process flow structure ................................................................................... 14 References ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ 8 Stage of packaging ..................................................................................................................... 11 Suppliers (Ginning) ................................................................................................................................................................................................................. 7 Stage of Comber.......... 3 Cotton Ginning Sector ..........................................................................

95 billion in July-March 2010-11 despite power crisis. the ginning sector is out-dated and needs modernization. Profit of the spinning companies was up 172%. Most of these companies were carrying cotton stock bought in the previous quarters. while gross margins. An analysis of 53 listed textile companies shows that their net profit jumped to Rs. 20. the total production of ginned cotton is 10.Against capacity. They enjoyed a cost benefit as cotton and yarn prices rose. The total capacity is approximately 20 million bales per year (assuming a 100 day ginning season).5%.9 billion to the total profits mainly because of rise in yarn prices.MAYFAIR TEXTILE 3 Industry Overview As Pakistan is among one the leading cotton producer in the world in terms of production and quality. contributed a major chunk of Rs 10. Unfortunately. Textile sector comprises of a number of pattern or step which are: Cotton Ginning Sector There are 1221 Ginning factories in Pakistan of which1075 are in the Punjab and the remaining 146 are in Sindh. political. Their profit increased 83% to Rs 9. Twenty eight spinning companies.56 billion. high inflation and lingering security issues. It had performed well in the past but in recent years some issues affected this industry which are economic conditions. said JS Research in a report. Ginning is the sector which is first in the process of value addition leading to readymade garments or other textile products. power crises and inflation but Pakistan’s listed textile sector recorded a 122% rise in its profit during the nine months ended in March 2011 on the back of better product prices in international markets and higher sales. Input prices for the composite firms went up. part of the analysis.0 million bales suggesting an excess capacity of ginning in the country. increased by 103 basis points to 16. . but the effect of it diluted because of better export revenues. the ratio between gross profit and sales. Twenty composite companies were also included in the analysis.

The production of cotton yarn has increased to 1456. in its stature. price and consistency of supply.MAYFAIR TEXTILE 4 Cotton Spinning Sector The spinning sector is the most important segment in the hierarchy of textile production. garments. independent weaving units.4 thousand tons in July-March 2010-11 against 1429.March.1thousand tones last year thus. producing high quality cotton yarn for sensitive consumers in Europe. The weaving and made-up sector has three different sub sectors i.2 Million spindles and 147thousand rotors in cooperation with capacity utilizations of 83 percent and 47 percent respectively. but more importantly. It is a firm belief. And lastly is the Dyeing sector. Operation of the mill began in the year 1991.9 percent. a recognition accorded to it by its customers in appreciation towards its commitment to quality. At present. . scarcity of quality yarn and the lack of institutional financing for their development from an unorganized to an organized sector. it is comprised of 453 textile units (50 composite units and403 spinning units) with 9. It is interesting to note that the mill commands a premium price in the markets where it is present. the Far East and other regions. Weaving and Made-up Sector The patterns in the weaving and made-up sector which is comprised of hosiery. that even in adverse market conditions. towels. registering a growth of1. and power loom units. 2003-04. Company Background Mayfair Limited is one of the leading cotton yarn manufacturers in Pakistan.e. It is an endearing quality well appreciated by our customers. that supply be maintained to the extent required. who have been the mainstay in the remarkable progress of the company. integrated textile units. canvas. bequeathed by the founders. during July. and bed wear are different from those of the spinning sector. Problems facing power looms encompass poor technology. Since then the mill has shown remarkable growth not only in the area of sales & volume. being promoted by its illustrious founders.

MAYFAIR TEXTILE 5 The production capacity of the unit is approximately 33 tons per day. This process flow structure plays a key role in the firm’s strategy for building competitive advantage. The high quality of the product has carved for itself and export market where all kinds of cotton yarns. Some have the whole chain of textile like spinning. These don’t have direct competition with Mayfair because each one of it serve different region customer but capacity and nature of operation wise they are one and same. Mayfair textile primarily engaged in producing yarn depending upon the order requirement so has a stable line of output. synthetic yarns and their blends are exported. Process flow structure A process flow structure refers to how a factory organizes material flow. Export growths have been phenomenal and predict the future trends. weaving and dyeing (Nishat and Chenab) while others produce for orders of required purchasers. Zaman textiles. Continuous flow structure is used as their products are of a single type meaning no modification required and work 24 hours a day in three shifts. Landmark Spinning industries. A total number of 1200 employees are working on the plant currently. Mayfair textile uses “Continuous flow process”. Sunshine cotton mills. Mayfair Ltd. has been marked from the beginning to spin a success story all their own. Each order requires a different set of . Spincot cotton industries. Competitor Analysis As told earlier that around 422 spinning mills are operating currently out of which 24 are of large scale among which Mayfair is one of the Participant. Premium textiles mills and Sitara spinning mills. Company main focuses upon “Make-to-order” process as it is fully engaged in export business. In terms of direct competition there is no such competitor but in terms of capacity and similar operations few competitors are: Cresent textiles. The product is versatile and finds use in many different ways in the textile and clothing industry of which it forms the essential ingredient. The sequences of activities at the Plant tend to be in a line and they are considered to be less flexible.

This decision is based upon the forecasted international and local demand of Cones and the company’s storage and production capacity.MAYFAIR TEXTILE 6 quality leading the company to work specifically to that requirement and not to manufacture for stock inventory. There are a total of 25 warehouses . Their process of making the end product is very long. Testing is heavily focused and several different aspects of the product are checked at each and every stage. The next phase is the actual purchasing and storage of the cotton bales which is done during September through mid-December which are the peak season for trading of cotton bales.000 bales of cotton in its warehouses and open backyard. Then for the production these raw material are then transferred to their respective workstation or the departments lined in a cue. In the phase of purchase decision the management of the company decided upon the amount of raw matrial needed to be purchased for the whole next year.000 bales given its production capacity and customer demand. There are a total of 9 stages in the whole manufacturing process which starts from the purchase of raw material (Cotton Bales) to the shipping of the finished goods (Cones). purchase decision and storage. so that they can meet the large amount of customer orders on time. first they receive their raw materials then transfer this material to the Quality Control Department where the quality is thoroughly checked according to their standards. Stage of Purchasing: In this stage there are two phases. Process Selection Mainly Mayfair Textile uses Conversion Process. As Mayfair textile does not compromise on Quality at any cost. Mayfair textile plant has a total capacity of storing 70. The basic Raw material i: e cotton in the form of bales are used and converted into the finished goods which in this case are the Yarn. Currently the plant is storing an average amount of 35. Manufacturing Process The processes at Mayfair textile are designed to achieve high efficiency in order minimize costs and increase the speed of production.

The whole procedure of moving the bales from the warehouse to the plant takes 2.5 hours (150 mins). The short fibers removed at this stage . The output of this stage is Lap Sheet. Other impurities which come out during this process are polythene.MAYFAIR TEXTILE 7 at the plant. At the beginning of this stage the cotton bales are kept in the low humidity environment for 24 hours in the Blow Room. These bale a moved to the issue room which is a storage point inside the plant. The bledomat machine works on 120 cotton bales together and takes 8 hours to completely open them up. as the daily consumption of Mayfair textile is 360 bales. The proceeding phase is of BOB/Muti Mixer/ Axi Flow machines. dust and short fibers are removed by the Card machine from the lap sheets to make cotton rope that will be complete clean of impurities which can affect the strength and quality of the product. whose function is to separate the chunks cotton and blow air into them. Stage of Dehumidification. after which they are moved to the Bledomat machine which open up the tightly packed cotton bales by roving the wires inside them. each with a capacity to hold 1600 bales. From this stage onwards the environment of the whole plant is changed by dehumidifying the air so that the cotton bales do not absorb moisture.5 months to complete. Stage of Micro Impurities: In this stage smaller and finer impurities like seeds. The humidity level of the air inside the whole plant is maintained at 51-52 RM. Opening and Cleaning: There are 4 phases within this stage whose main functions is to convert the cotton bales into a usable form for machines in the further stages. Stage of Batch Issue: In this stage the cotton bales are moved from the warehouse to the plant as the input for a complete day. This stage of the process takes place only once a year and takes a time of around 1 to 1. Last phase in this stage is of BS/ Duftex Dux/ Loptex machines which remove major impurities in the cotton such as stones and leaves. polypropylene and jute which sold off to other manufacturing companies. The next two phases have 4 parallel lines of similar machines. From here three batches of 120 cotton bales are moved into the plant for processing during a day.

5 pounds and 4. The outputs from this stage are Comber Cans. These cones have two types of weights. Initially in this stage the comber cans are spun into draw frame cans to make them strong enough to go throw the Simplex machine which spins the draw frame cans into Rovings. The final Stage of the production process is the Auto Cone. The last quality check on the cones is done by loading them onto a trolley and passing them through an ultraviolet shed which illuminates the white colored strings and any impurity or mix-up of thread thickness is identified and removed before sending it to packaging stage. The outputs at this stage are called Slaver Cans. therefore the replacing speed the filled bobbins by the operators determines the speed of the process. The thickness of the thread is varied as per the demand of the customer and the most important check to make at this stage is the speed of the process. . In this stage the strings are spun to remove any weak linkages and color impurities to assure the final output is of pure white color and has consistent strength throughout. 2. Stage of Comber: In this stage the cotton rope is mixed in three different machines to achieve consistency in the composition of the rope. Magazines loaded with 8 bobbins are loaded onto the machines to minimize replacement time and it takes approximately 33 bobbins to make one unit of the final product which is the Cone. Uni-Lap and Comber each gives a similar output but with the thickness of the rope in each successive phase decreases. Rovings are spun into Bobbins and 1 roving is converted into 45 bobbins. Any problems or delays at this point slow down the plant making this the bottleneck of the whole manufacturing process. At this point in the process the cotton rope has converted into a thread which is still thicker then the final product and the unit of material has now decreased in size from a can to a cone.167 pounds depending on the order specification by the customer. Three phases Pre-Comber.MAYFAIR TEXTILE 8 are sold to other companies to make other cotton products. Ring Department: In this stage the rovings are spun and stretched to change their thickness. These comber cans are then moved to the next Stage of Draw Frame in which the cotton rope is now spun to attain strength.

. The cones are exposed to the high humidity environment for 24 hours of which 12 hours are in a moisturizing machine and for the next 12 hours the cones are left in the store where the air is being manually moisturized by sprinklers installed on the ceiling.750 = 0.440 mins) a day with no breaks with 3 shifts of employees working at the factory for 8 hours per shift. making the daily production to be around 950 bags (950 x 25 cones = 23. which is standard output unit of the factory. The plant practically never stops and even on Eids the factory closes only for the namaz-e-eid. The Cycle time comes out to be 1. Quality Management & Control Quality is foremost concern for the production department. recommended is 8%. The plant runs 24 hours (24 x 60 = 1. The quality check start from the procurement of raw material where bale moisture meter is used to check the moisture level in the bale.MAYFAIR TEXTILE 9 Stage of packaging: This is last stage of the plant in which the finalized cones are reintroduced to moisture.5 trucks every day. A single bag contains around 25 cones and weighs approximately 100 pounds. For this purpose expensive quality control machines serve that purpose.750 cones). which can carry around 422 bags and sent off to be shipped to the customers. ____________________________________________________________________________________ Cycle Time: The plant is able to fill 2.061 minutes or 3.64 seconds per Cone. These bags then loaded onto the trucks. A separate devoted laboratory is there for quality control. After that these cones are packed into a Bag. Once the preliminary investigation is done a clearance report is issued for the material to be used in the production process. Afterwards when raw material is shipped and reached the facility a separate quality team inspects that for the moisture and wastage/trash. The quality is checked according to the desired order required and the benchmark standard used by the department for quality control.440 / 23.

USTER® STATISTICS cover every stage of preparation and spinning for cotton. The order is passed to the next stage once the quality assurance report is issued. Benchmarking & International Standards USTER® STATISTICS are acknowledged throughout textiles worldwide as the essential tool for quality benchmarking.MAYFAIR TEXTILE 10 As production process has been discussed earlier. roving and yarn. For this purpose expensive quality control machines serve that purpose. USTER® STATISTICS are the only way to compare their products and processes against authoritative global standards. sample from each stage and sub stage is sent to the laboratory and matched with the order required quality standards (a sample report attached in the Exhibits). The quality is checked according to the desired order required and the benchmark standard used by the department for quality control. carded open-end and air-jet methods. monitoring or control systems. slivers. rovings and yarns according to current worldwide quality levels.  USTER® STATISTICS are quality reference figures which classify fibers. USTER® STATISTICS: four key benefits  For spinners. Spinning mills value this statistics for quality comparisons and process optimization. All the main spinning systems are included – carded and combed ring. polyester. polyamide. They set out the vital quality parameters for the entire production chain – from raw fiber to sliver. as well as other cellulosics. if somehow the quality of sample didn’t match the overall drum or belt is passed through the process once again.  Leading textile machinery and accessory manufacturers depend on USTER® STATISTICS to evaluate the quality impact of new developments in machine technology. polyacrylic and blends.  USTER® STATISTICS are widely used the basis for yarn contracts and product specifications in buying and selling. .

Multan.4 3 0 30 4 20 4 4. Punjab has the finest cotton and Multan belt is famous in cotton production so cotton bales are purchased from those brokers or ginning factories located in that belt.24 1. Bahawalnagar. Sitara cotton. Chand cotton. Bahawalpur.7 8.96 1. Vehari.9 1. lal cotton.6 8. Khairpur. Rahim .6 7. Ghotki.5 20/S CM HOS USP 2007 20/S CM HOS Mayfair 20/S CM HOS USP 2001 26/S CM HOS USP 2007 26/S CM HOS Supply Chain Management Purchase of Raw Material As explained earlier that quality is the prime focus of Mayfair so purchasing the finest raw material is also one the hardest job. Some of the contractual business ginning factories are: Star cotton. Usually cotton is purchased by the purchasing department based at Multan and given to the ginning factories for processing with decided percentage share. Sukhur.0 10 0 55 6 60 10 4. Usually the given cities are taken under consideration while purchase of raw material: Sahiwal. Pakpattan. Lodhran.16 -5 0 65 6 55 12 5.1 6 0 45 4 32 7 4.0 7.64 -12 0 100 9 75 20 5. Khanewal.MAYFAIR TEXTILE 11 USTER Statistics Standards 2001-2007 USP 2001 USTER Parameters U% CV(W) % Thin-40 Thin-50 Thick +35 Thick+50 Neps + 140 Neps +200 Hairiness 8. Rahim Yar Khan. deewan cotton. Suppliers (Ginning) Mayfair textile has a mix blend of raw material procurement one through contractual ginning and other through “Cotton Brokers”.

Air transportation is used as the transportation mode for shipping the item from Pakistan to abroad. In the case of Mayfair textile Yarn is exported to Europe and China. Sibco cotton.MAYFAIR TEXTILE 12 ginners. Sindh Agro Industries. Customer Yarn is then supplied to the main customer. Sunder cotton. Usman Trading Group. Nadeem and Naeem Traders. Khan cotton ginners. New Indus ginners. Hence it is minimizing the bullwhip effect in the supply chain process. Shan cotton. Master trading house. Bismillah cotton. Vohra Corporation. . Mayfair Textiles purchase raw materials from these brokers and store them in its warehouse. Brokers Other than the contractual ginners some renown brokers engaged in business with Mayfair are: Ali Brokerage.K associates. Seemco Cotton Trading. The materials pass through the manufacturing process and cotton bales are transformed from cotton bales into yarn. Mayfair Textiles uses efficient supply chain strategy (cost minimization) and intends at creating cost efficiency by having one time material at hand thus low input travelling cost. Asia cotton. Mayfair Textiles uses mass customization and has the ability to cater to the needs of a large number of customers in terms of variations in the quality of the finished yarn depending upon the order requisite. This is done in order to achieve time efficiency. N. Yarn satisfies basic needs of clothing and textile industry and therefore they have predictable demand and long life cycles. Mayfair textiles produced functional products which are bought in wide range by the customers. The materials are later moved the production process according to the demand of the customers. Kohistan cotton. Quality cotton corporation.S. Fazal traders. For this purpose the company uses capacity utilization in production and distribution. Mayfair Textiles makes surety of the synchronization among supply chain members and confirm that the amount ordered of the raw materials is based on customer demands.

Forecasting Mayfair textiles forecast the amount of yarn that will be demanded in a particular year and purchased raw materials based on the forecast using the past record of number of order adjusting the uncertainties.MAYFAIR TEXTILE 13 Capacity Management When the materials are purchased from the suppliers they are placed in the factory’s warehouse. Bales are ordered once in the year during the cotton season i:e from August to December and are stored in the warehouse for rest of the year utilization. There are 25 warehouses in the factory which have capacity to store 70. The cost incurred in the purchase of bales from suppliers is the fixed cost and is managed with the demand so further they didn’t made hassle to purchase as most suppliers work on the seasonal basis.000 bales. . The factory produces products which have depended demand as the demand for cotton yarn is dependent on the demand for the cloth so thereby the Mayfair business is heavily dependent upon that but as they are into the export business and according to their officials the demand has been continuous throughout the period leading a hope for the company to be optimistic on the forecasting side.

the company needs to coordinate with the brokers and suppliers to have such a design of material flow that if within year material is required it can make some arrangements at hand. As a consequence of load-shedding the textile production capacity of various subsectors has been reduced by up to 30 per cent.MAYFAIR TEXTILE 14 Conclusion and Recommendations Currently the company is performing well the production process is well managed and a number of machinery has been purchased to avoid bottlenecks. Moreover. Nevertheless. . The company can also seek manufacturing options in foreign countries (Bangladesh) thereby achieving the status of an MNC and producing specific products at both places to achieve economies of scale and efficiency. Moreover. the capacity of the warehouse is sufficient to store the raw materials and meet demands of the customers. it is recommended that the company should keep more poka yokes for the shortage of electricity and gas.

org.com.pdf  http://www.pakistanbusinessjournal.html  www.MAYFAIR TEXTILE 15 References  www.aptma.pk  www.com/Textile-Spinning-Mills_SID226.com/rjis_14_04.pk/Web-2011/05-2011/Editorial.htm  http://www.com.com .mayfair.com/business/textile-exports-to-us-may-drop-18-in-volume/  Pakistan Cotton ginners association report 2010 – 2011  http://www.ptj.eurojournals.cottonstocks.livenewsarticles.pk/  http://pakbiz.com  http://www.

MAYFAIR TEXTILE 16 Appendix .

MAYFAIR TEXTILE 17 .

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