Semester Project Presentation

MGT 301 Production and Operation Management

Aneeq Ahmed | Minaam William Mohammad Ali Hashmi | Osama Hasan ChE-01-A School of Chemical and Materials Engineering (SCME) National University of Sciences and Technology (NUST)

The Founder

Syed Babar Ali
A Chemical Engineer and an Entrepreneur
2

Packages Limited
• Established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund and Rausing of Sweden, Packages Limited provides premium packaging solutions for exceptional value to individuals and businesses.
• The only packaging facility in Pakistan offering a complete range of packaging solutions including offset printed cartons, shipping containers and flexible packaging materials to individuals and businesses world-wide.

3

Packages Limited
• Clientele includes illustrious names such as Unilever and Pakistan Tobacco Company, who have been customers for over 50 years.
• Employs over 3000 people and had sales of over US $ 100 million in 2004.

• Listed on all three stock exchanges in Pakistan, it has has maintained a long-time credit rating of AA.

4

Packages Limited
• Joint ventures and business alliances with some of the world's biggest names reflect the forwardlooking strategy of continuously improving customer value through improvements in productivity.
• Packages has always been at the forefront of new developments in packaging research and has pioneered several innovations, including the use of wheat straw as a raw material for paper and board manufacture.

5

What Packages do?
MANUFACTURES AND SALES OF
• Paper (Writing Paper, Machine Glazed/Special Poster Paper, Fluting Paper, Liner For Shipping Cartons, Corrugating Medium Paper, Wood-free Writing/Printing Paper;) • Paperboard (Carton Products , Corrugated Cartons) • Packaging Materials (Packaging Films and Laminates ) • Consumer Products (Tissue Papers, Personal Hygiene Products) • Finished and Semi-finished Inks

OFFERS
• Specialized Services (Rotogravure Printing and Sleevemaking)
6

Mission Statement
... a market leader by providing quality products and superior service to our customers, while learning from their feedback to set even higher standards for our products. ... a company that continuously enhances its superior technological competence to provide innovative solutions to cater to customer needs. ... a company that attracts and retains outstanding people by creating a culture that fosters openness and innovation, promotes individual growth, and rewards initiative and performance. ... a company which combines its people, technology, management systems, and market opportunities to achieve profitable growth while providing fair returns to its shareholders. ... a company that endeavors to set the highest standards in corporate ethics in serving the society.

7

Core Values
Smart Governance Ethical Behavior Work Environment

Customer Satisfaction Conservation

Our People

8

Corporate Structure
manufactures paper and board from a mixture of wood, pulp and other raw materials, and treats effluent

Paper and Board

takes materials from the Paper and Board Division and converts customer ideas into finished products

Packaging

Consumer Products
manufactures offthe-shelf branded consumer products

9

Products
• • • • • Paper and Board Carton Business Unit Corruwal Business Unit Flexible Business Unit Consumer Products

Paper and Board Mill Division
10

Paper and Board Unit
• Production capacities exceed 100,000 tonnes per annum, from four main paper machines of different capabilities. • These paper machines are supported by two pulp mills and a chemical recovery and effluent treatment plant along with allied support services. • Packages Limited is among the first companies in the world to manufacture paper & paper board using a pulp mixture of wheat straw, kahi grass, cotton linter, recycled pulp and wood pulp. • These environment-friendly processes use fewer chemicals, resulting in improved strength properties and increased stacking strength of containers.

11

Paper
PRODUCES
– high gloss writing paper – machine glazed / special poster paper – fluting paper – liner for shipping cartons – corrugating medium paper – wood-free writing/printing paper Paper quality and weight is determined by the client's specific requirements and Packages ensures this is carried out to the exact specifications provided.
12

Board
Manufacture several types of board. Food Board, a basic raw material in liquid food packaging, is being manufactured since 1979 for Tetra Pak Pakistan Limited. This material is used in making aseptic packaging for milk, cream, oil, fruit juices and other perishable food items. Some of our board products are: • • • • • • liquid packaging board food grade board duplex board / chipboard bleached board tobacco board and cardboard liner board
13

Carton Board Unit
• The Carton Business Unit's technical competence is reflected through two modes of printing: offset (for complex design) and rotogravure. (for higher volumes) • A new Lemanic rotogravure printing and inline cutting creasing machine was also in the year 2000. • New lines have been introduced with the addition of a Roland 700 double coater in the Offset Printing department, a Bobst Evoline in the Cutting and Creasing and a Bobst Media 100 in the Folding and Gluing departments. • The state-of-the-art Roland 700 with twin coating has enabled Packages to introduce innovative printing with special effect coating and gold coatings.

14

Carton Business Unit
• Carton Business Unit production experts work closely with pre-press and technical staff to deliver a durable, aesthetically pleasing and technically sound package to the customer. • The total board consumption of the carton line is around 18 - 20 thousand tonnes per annum. Clients include: – Food and Beverages – Soap / Detergent – Pharmaceuticals – Match – Electronics – Shoe – Tobacco – Paper Cup
15

Corruwal Business Unit
• TECHNICAL EXPERTISE Our corrugated finishing division can print in up to three colors. Customers have the flexibility to choose from regular slotted containers (RSC), glued, RSC stitched or die cut cartons. • PRODUCT DEVELOPMENT After customer feedback and extensive research, Packages has developed special liner and fluting that gives extra strength to containers, in particular increasing their stacking strength and their resistance to bursting.

16

Corruwal Business Unit
• Packages has been manufacturing corrugated cartons since 1974. Produced in a variety of sizes, these cartons are of great value for in-country goods distribution and export. Capacity increase and product development continue to be of high priority. • Corrugated cartons are of great value to our diverse portfolio of customers for secure transportation of their products to local and international markets. With the commissioning of our corrugated plant in Karachi, we have the capability of producing seven million corrugated cartons to cater to the ever-increasing demand of high quality shipping cartons. – Textile – Food – Tobacco – Soap – Detergent

17

• With improved barrier properties and lower cost compared to rigid packaging, flexible packaging is steadily gaining importance in the packaging industry. Our flexible line makes high quality packaging films and laminates, and offers other specialized services such as rotogravure printing and sleeve-making. • Flexible packaging combines different plastic films, aluminum foil and paper to produce laminates of two or more layers for providing layered protection against moisture, gases and odours. Used where colorful package design and preserving product quality are important, such as in the food and pharmaceutical industries, flexographic printing offers economy with quality.
Soap Tobacco Tea Food Diary Ice-Cream Milk powder Confectionery Shampoo Pesticide Pharmaceutical
18

Flexible Business Unit

Consumer Products
A range of products for those annoying problems in life: our consumer products feature great ideas for making everyday living easier and more comfortable, both indoors and out.
– – – Tissue Products Personal Hygiene Paper Products

Reflecting our core values of exceeding customer expectations through innovation, leadership and teamwork, the Rose Petal and Tulip brands continue to hold over 80% of the domestic market share of the tissue paper market in Pakistan. We also have a leading market share in the away-from-home business: we supply custom-printed boxes, table napkins, coasters and paper cups to institutions such as hotels, fast food chains, restaurants, businesses and the airline industry
19

Production and Operation Management
AREAS IN FOCUS
– – – – – Location, Design and Layout Quality Inventory Management Customer Satisfaction Environmental Policy

20

Location, Design and Layout
Packages was established in 1956. Lahore was then selected as the site due to three major reasons: • Easy availability of workers • Easy availability of raw materials • Easy transportation all over the country The site continued to serve the objective for more than five decades, but due to population density in vicinity, the paper mill has now been shifted to a rural area near Qasur.

21

Location, Design and Layout
• Corrugating Unit has been shifted to Korangi Industrial Area, Karachi to reduce the transportation expenses. The current plant site at Shahrah-e-Roomi, was such planned that it continued to serve the objective for over five decades Buffer regions were left, and buildings were mostly ground / first floors.

22

Location, Design and Layout

23

Location, Design and Layout

24

Quality Policy

Total Productive Maintenance Pillars at Packages Entrance

25

Quality Policy
We at Packages Limited are committed to producing quality products which conform to our customer requirements and strengthen our position as a qualitymanaged company. Our pledge is to provide the market with the best quality products at competitive prices through a customer-driven and service-oriented, dynamic management team. To meet this obligation, the company will continue updating skills of its employees by training, acquisition of new technology, and regular re-evaluation of its quality control and assurance systems. Appropriate resources of the company will be directed towards achieving the quality goals through employee participation.
26

Quality Highlights
• • • Complies with the ISO 9001 standard 6th company in Pakistan to adopt the ISO series as its quality standard Maintains 57 Quality Improvement Teams in various departments to ensure continuous improvement focus in the organization Nurture Key performance indicators (KPI) concept: Each division in the company sets SMART (specific, measurable, achievable, recordable and time-based) targets for the annual improvement of its key process parameters, reviewed by the management every quarter Maintain a comprehensive set of engineering tools, rules, processes, training materials, guidelines, best practices and other supporting documents to make sure our products comply with every possible customer requirement.

27

Maintaining Quality
• Quality Assurance (QA); the pro-active approach to avoid reoccurrence of problem in future.
Quality Control (QC); the reactive approach to the damage borne. Correction; Reject clients undesired objects – Expensive Corrective Action; Laboratory Tests, Quality Audits Preventive Action; QA, Planning to avoid future rejects

• • •

28

Quality Assurance Department
• • Customer Satisfaction in Terms of Quality – process inspection from raw materials to consumer Trainings for Management and Staff – measure of dispersion, central tendency, standard deviations, defect matrix, bandwidths etc Quality Inspections Laboratories – 6 labs, each at the end of each production cycle, certifies or declines the product clearance to market Supplies Quality Assurance – verification of ‘certificate of analysis’ by the supplier about particular order Quality Improvement Projects (QIPs) – quality circles with members from QA, Inventory and Supply Chain Quality Conferences – Kaizen Conference (Japanese: Continuous Improvement) monitory awards for quality work; Productivity Conference recognition for yearly performance

• • •

29

Quality Assurance Department
QA Lab at Paper and Board Mill Area

Gloss Test for Card Sheet
30

Inventory Management
• • • • • • Packages maintains her inventory under the auspices of Supply-Chain Department ISO 90001 and 14001 are implemented FIFO (First In, First Out) is the order Stocks are managed through SAP (System Application Procedure) Materials dealt include: raw materials, spare parts, production supplies and general items A demand is generated when requisition is made by any stake holder, followed by a computerized stockcheck leading to issue or purchase order Lead time is 3 – 4 months for imported materials i.e. mostly production supplies / raw materials, 30 – 45 days for local items
31

Inventory Management
• • • 1000 – 1500 general items are termed as store items and re-ordered by inventory Corporate target is min 45 days inventory Materials are inspected on delivery from vendor. In case of quality rejection, returned to local market; for international suppliers, rebate is collected and items are sold out in local market In case of undesirable delay for consumption of material and high probability of expiry, it is also auctioned in local markets GIR (Good Issuance Recognition) and GRN (Goods Receipt Note) are implemented to for timely acknowledgement of issuance and receiving Inventory is kept at desired conditions of temperature and humidity to ensure safe storage.
32

Inventory Management
• • Fork Lifter are used for movement of inventory Total raw materials inventory is about 1200 – 1300 million Rs.

Chemical Store at Packages Limited
33

Customer Satisfaction
SERVICE AFTER THE SALE
• Customer Services Department (CSD) follows new orders from pre-press up to final delivery to make sure product exceeds customer expectations. • CSD arranges development activities and provides comprehensive technical and after-sales support to customers. • Customer complaints are followed by proper feedback and management reporting that is why customers are given due attention and the essential quick response all the time. • To strengthen the supply chain, Vendor Managed Inventory (VMI) facility is provided to key customers. • Stocks are maintained and delivers on short notice according to customer requirements.

34

Customer Satisfaction
PRE-PRESS (ART AND DESIGN)
• The department makes designs for all types of packaging (cartons, flexible packaging and corrugated containers). • A team of dedicated artists first creates the artwork, which is then transferred to the cylinder and plate-making department. • The Art and Design department has been completely revolutionized over the last 15 years: output from design is digitally transferred to plates and cylinders so that there is no loss in data. • A unique color management system ensures the accuracy the designs as they will appear on the finished product.
35

Customer Satisfaction
RESEARCH & DEVELOPMENT
• Company constantly explores and develop usage of new fibers, films, chemicals, adhesives, coatings and resins. • With well-equipped laboratories and research resources at their disposal, it has been a happening place in the area of research. • Research and Development (R & D) department is committed to develops new products that service changing consumer needs, while evaluating and improving raw materials to reduce costs and increase efficiency. • Laboratory simulation of papermaking operations, chemical testing and analysis, comprehensive testing of paperboard and its products and other research and development facilities are provided.
36

Environmental Policy
ENVIRONMENT, HEALTH AND SAFETY (EH&S) POLICY
Packages Limited through it decisions constantly tries to : Minimize its environmental impact, as is economically and practically possible • Save raw materials including energy and water, avoid waste • Ensure that all its present and future activities are conducted safely, without endangering the health of its employees, its customers and the public •

37

Environmental Policy
ENVIRONMENT, HEALTH AND SAFETY (EH&S) POLICY
• Develop plans and procedures and provide resources to successfully implement this policy and for dealing effectively with any emergency • Provide environmental, health and safety training to all employees and other relevant persons to enable them to carry out their duties safely without causing harm to themselves, to other individuals and to environment • Ensure that all its activities comply with national environmental, health and safety regulations • This policy shall be reviewed as and when required for betterment of the same.
38

Environmental Policy
PAPER RECYCLING
• Packages has the capability of producing 100% recycled paper. • Various grades of paper and board (shipping, cartons, newsprint, magazines, imported waste paper) are collected and then shredded. • This is fed to a huge mixer where a controlled percentage of virgin pulp and used paper are mixed together to produce material for recycled paper.

39

Environmental Policy
Effluent And Waste Management
• Discharged water from the paper and board mill goes to a septic tank where heavy, insoluble material settles down and is constantly scooped out. • Specialized cleaning equipment removes the residual sludge and suspended particles. The suspended solids are separated and treated on sludge de-watering equipment and thickened for disposal.

40

Environmental Policy
Effluent And Waste Management
• The introduction of the new method of using wheat straw as a raw material was a bold step partly aimed at reducing the chemical load of the effluent. • An even bolder step was taken with the import of Chemical Recovery Plant in 1997. • Black liquor, which poses severe difficulties in the effluent treatment system in any pulp mill, is concentrated in this plant to 58% solids and then incinerated in a waste heat boiler, where organic impurities are destroyed and the steam generated is utilized for evaporating the incoming liquor. • The ash, containing inorganic compounds, is dissolved in water to recover any available chemicals.

41

Environmental Policy
WATER MANAGEMENT
• This is a recent part of the green policy adopted by Packages. It includes reduction of the usage of water in all stages of its processes. Better water management has led to better utilization of water and other raw inputs. • At 300 tonnes per tonne of pulp produced, the quantity of water itself poses serious problems of extraction and disposal. • To reduce it, a dissolved air flocculation system and special filters have been added to different streams of reusable water and wherever possible, fresh water in various processes has gradually been replaced with this water.
42

Environmental Policy
INDEPENDENT ENERGY HOUSE
• Packages is self-sufficient in its power generation capabilities with an installed capacity of 26 MW. A local boiler meets the company's steam demands.

43

Environmental Policy
RESULTS
• These efforts were streamlined in 1997 through the formation of a committee of internal experts to look regularly into issues concerning environment, health and safety. • The committee is currently involved in the management of fresh water use, effluent management, control on air emissions, energy conservation and maintenance of health and safety standards in the company. • It uses guidelines provided by the National Environment Quality Standards (NEQS) as a benchmark, even modifying processes to conform to its objectives.
44

Environmental Policy
RESULTS
• As a result of combined efforts, the quantity of water used, as well as its BOD and COD has been reduced significantly. • Steam consumption and heat energy consumption in 2003 have both shown a reduction of over 16% each compared to 1999. The electricity use in the same period has gone down by an impressive 25%. • These activities have acquired such importance for the company that out of US$ 100 million spent on new processes and technology in the last few years, 20% were spent on environmental issues alone.
45

Before we end, A very special thanks to

Mr. Muhammad Akram
Manager Industrial Relations

Hassan Asif
Manager Quality Assurance

Shahzad Murtaza
In charge Stores and Inventory Department

Saliha Akram
NUST Institute of Environmental Science and Engineering (IESE)

Prof. Dr. Nawar Khan
NUST College of Electrical and Mechanical Engineering (EME)

and not to be forgotten

46

47