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Executive Summary

My practical experience and learning with Leather Field (PVT) Ltd., as an internee, has added a great value to my skills, knowledge and abilities. By having an opportunity of internship in a reputed organization, Leather Field (PVT) Ltd. has helped me broaden my vision and moreover, I found very comfortable and co-operative environment regarding my work in observing departmental operations and management activities during my internship program. Leather Field (PVT) Ltd. is an ISO-9002 certified company. It is the largest manufacturer and exporter of leather garments in Pakistan since 1990. Since its inception in 1988, the company has developed the long term relationship with leading brands of leather garments and chain stores all over the world. Leather Field (PVT) Ltd. is at the fore front of the leather apparel making, representing the fashion and motor-bike leather collections for both; men and women. I started my internship with Merchandising Department which is also known as Marketing Department. The very first week, my supervisor Mr. Waseem Ashraf Cheema started to train me by rotating and guiding me about different departments. Being with a well experienced merchandiser manager, I have visited many departments like Import Department, Production Department, Production Planning and Control Department, Production Co-ordination Department, Quality Control Department, Cutting Department, Sampling Department, Material Management and Controlling Department etc. which are the most related to the concern working of a merchandiser. I spent most of my time in Merchandising Department where my supervisor directed me to know all the elements necessary for production as well as management. A merchandiser in Leather Field (PVT) Ltd. follows the instructions given by the customer and takes necessary actions to satisfy a customer in a better way. The process of my internship started with the PO (Purchase Order) that a merchandiser collects from the customer with Technical Files which include all the information regarding customer requirements. The merchandiser prepares WO (Work Order) against PO. I have also learnt to convert the PO into WO. By converting into the easily understandable form, WO including with all information is forwarded to relevant departments for smooth flow of work and maximum avoidance of mistakes. The merchandiser is responsible

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to convey all the necessary information in case of any revision/updating in PO to the PCO (Production Co-ordination office) which is a hub of all production process. I have also worked with PC office. PC office sends PO to all relevant departments and reports to the merchandiser regarding the production process against PO on daily basis. PC office is responsible to coordinate with all the departments for easy and smooth production processes. PC office prepares BOM (Bill of Material) and BOL (Bill of Leather) before starting the production by against every PO to sure the availability of the material and leather. PPC (Production Planning Co-coordinator) officer prepares the production schedule and mark the Exfactory date on PO keeping in view the production capacity and working of different halls. Copies of BOM and BOL are circulated to the concerned departments to arrange necessary materials and leather to manage the work force to get maximum output. I also worked with them and spent time to know the production procedures very closely as it is a part of duty of a merchandisers job to make sure the right execution of specific requirements of the customer. I have also gone through the Tannery process of raw skins (Hides) to finished leather and got a lot of new knowledge and skill in troubleshooting the processes. Positive organizational behavior, dealing with customers, team work, creating self ethics for our own success, leading people, decision making based upon facts, customer handling techniques and the most important creating quality and customer satisfaction while exceeding the organizational expectations are the key learnings of my time which I have spent with Leather Field (PVT) Ltd. Overall, I would like to highlight that my practical experience with Leather Field (PVT) Ltd. was full of learning and memorable as my experience was not just from one end, even sitting on the other end, Im able to know the impact of decision making and commu nication process which will help me in my professional life, INSHALLAH.

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Chapter # 1 Introduction to Leather Field (PVT) Limited

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Brief Introduction of the Industry


Leather, a material made from tanned animal skins, has been used as clothing since the most primitive days of human being existence. Prehistoric people enfolded animal skins around their bodies for warmness and to absorb the magical supremacy that they believed the skins impart to them. In the middle ages, the moors (a caste) introduced the European world to softer Cordovan (a city in southern Spain) leather that was prepared from goatskin. During the Stone Age, garments were seized together with leather swatches that had been stranded by holes punched in the skin with rough equipments made of stone. The hides were stiff and did not last long before decay made them unbearable. Later, people learned animal cells. Perhaps it was possible that in trying to dye the skins with different materials, early people found further preservation means. Preservation methods have changed over the centuries. In some cultures, the skins were spread with talc (a fine grained mineral having a soft soapy feel) and flour to swap the natural oils. Womens leather clothing was often doused with perfumes. Although leather was a valuable trade commodity, the tanning work was dirty and odorous, and leather workers were usually downgraded to the outer edge of town. The American Indians used fist oil for the same purpose. Americans colonists found that plants such as the hemlock and chest-nut trees could also be used for tanning. In the 19th century, machines were developed to perform these processes and an American chemist developed a tanning method using chromium salts that cut the processing time from weeks or months to just a few hours. Chromium tanning, fat liquoring, and hide splitting were just a few of the advanced techniques developed in the 20th century.

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Brief Introduction of the Organization


Leather Field (PVT) Ltd. is an ISO 9002 certified company. It came into existence in 1988 by Mr. Ajmal Cheema with his brothers. They were capable of introducing a world class quality garments. At the begging, Leather Field (PVT) Ltd. has to face uncertain and critical problems. The competitors also tried to push back to the new entrance in the market. But Mr. Ajmal Cheema and his hardworking team never feel discouragement and made continuous improvements in products. They have dominated their competitors by providing high quality, low price and standard products to their clients. It has 2800 employees with a capacity of 3000 garment per day. The production department is using the specialization of job concept that has made it more beneficial for the organization. The world known products and brands of Leather Field (PVT) Ltd. are due to Superior craftsmanship, affordable price and delivery and continues quality improvement in fashion industry and best tanned skins. Leather Field (PVT) Ltd. offers huge quantity with best quality products that cannot be supplied by any other firm in the market. Its exports are of worth US $45 million per annum. The company is being managed by a professional management team and lead by determined entrepreneur Mr. Ajamal Cheema. Leather Field (PVT) Ltd. has its own tanning facility. This is known as the biggest tannery in whole Asia. It produces leather in best quality in single or double tone dyed leather. To achieve this quality there are different factors that are mainly contributing to provide this firm good repute and better words of mouth. Imported and environment friendly chemicals are being used in the tannery. Chemicals usually imported from Italy, Netherland, Switzerland and Germany. Chemicals are purchased on keeping in mind less toxic to environment as well as to the health of employees working in the organization. The management team always keeps in try to improve their quality, work standard, and less wastage of resources. All activities are totally in controlled environment and employees are working in good and relaxed manners to get efficiency and effectiveness in quality and work as well.

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Nature of the Organization


Leather Field (PVT) Ltd. is an organization producing durable goods for customers. Durability in Leather Field (PVT) Ltd. is maintained to keep the customers loyal. As leather garments are no so cheap. People do not use so much as compared to other garments, so every user requires durability in leather garments.

Production Lines and Brand Portfolio of the Organization


Leather Field (PVT) Ltd. is the largest exporting company leather garments industry. The big pie of market share is gained by Leather Field (PVT) Ltd. The major brands by Leather Field (PVT) Ltd. are:

Production Lines and Brand Portfolio of the Organization


First Racing First Classic Whet Blue Flying Bikes Xpert Performance Gear First for HER F.M.C Jim & Marylou Xpert Sport NYC

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Chapter # 2 Organizational Structure

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Organizational Structure
Organizational Structure of Leather Field (PVT) Ltd. has four main units for the final production of leather products:

1. Leather Garment Unit


It is main head office of Leather Field (PVT) Ltd. and situated in model town Sialkot. It is also known as unit # 1. I have applied for internship in head office and found the management very co-operative, polite and easy in their work. Head office is basically a stitching unit, where leather garments are being produced. It has a hierarchy of wide span of control. Communication is from top to bottom and vice versa. All the departments are working together to achieve common goals. There are following departments in the Leather Garment.

Core Departments
Marketing/Merchandiser Department Production Department Pattern Making Department Production Planning and Controlling Department Quality Control Department Material Management and Controlling Receiving and Inspection Department Purchase Department Sampling Department Import Department

Supportive Departments
Accounts Department Finance Department IT Department Compliance Department Security Department Finance Department

Electrical Department HR Department

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2. Tannery Unit
Leather Field (PVT) Ltd. has its own tanning facility situated in Sohwala Sialkot. This is known as the biggest tannery in whole Asia. It produces leather in best quality in single or double tone dyed leather. To achieve this quality there are different factors that are mainly contributing to provide this firm good repute and better words of mouth. There is a huge setup in the tanning process, some of different activities being performed in the tannery are: Curing , soaking, liming, flashing, de-liming, bating, de-greasing, washing and draining, pickling, tanning, basification, outing, piling, wet back, article, based process, re-chroming, neutralizing, dying, fat liquoring, faxing, topping, and again faxing. In tannery unit leather skins (hides) are also arranged by the head office. Finance is also in head office. Chemicals required for tanning are also being arranged by the Import Department in head office.

3. Lining Unit
This unit is also known as unit # 5 and situated opposite to unit # 1 in model town Sialkot. Lining
cutting in-charge ensures the cutting of lining according to the work instructions. This unit sends lining cutting report of lining cutting intimating # of garments cut and balance quantity and also submits Daily lining cutting report to Production Manager showing total lining, quality, fusing etc cut in his section.

There are 328 employees in this unit.

4.

Gloves Unit
Leather Field (PVT) Ltd. has its separate unit for gloves situated at Defence Road, Sialkot with 2800 pairs per day production capacity.

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Organizational Culture
In Leather Field (PVT) Ltd. working environment is so relaxed as to be almost casual; there is no bossing around or subordination, no name tags on offices, and no appointments required for calling on seniors. People are encouraged to communicate informally at all levels and interpersonal relationships are greatly valued. Written communication is simple and to the point, with even personal names abbreviated to initials to save time. Leadership of Leather Field (PVT) Ltd. follows the principle of 'management by walking around', where managers/merchandisers are expected to make daily rounds of all departments of responsibility, and have first-hand information of all significant happenings. This informal style of management may seem arbitrary, but is serious without being intimidating and has stood the company in good stead over the years. Today, the organizational culture is so attractive that now mostly people are joining straight from an educational institute and leave only after serving their full tenure.

Some Basic Information


Year of Establishment Annual Turnover Capacity of Stitching Unit 1988 US $40 Million 3000 garments/day 2500 pairs of gloves/day Number of Stitching Machines Number of Workers Major Markets 300 2800 USA, Canada, France, Japan, England, Germany

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List of main Clients


Nordstorm (USA) Wilsons Leahter (USA) Target Stores (USA) Cost Co (USA) Macys (USA) Casa Das Peles (Portugal) Cheivegnon (France) Redskins (France) Cuirco Diffusion (France) Saki AB (Sweden) Offset (Germany) SK Group (Japan) Northern Suede and Leather (England)

List of main Competitors


In domestic Market
VIP Leather Co. (PVT) Ltd., Sialkot Nova, Sialkot Sheikh of Sialkot, Sialkot

In International Market
India Bangladesh China

Number of Employees
There are 2800 employees in Leather Field (PVT) Ltd.

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Values
Ensure a relationship of trust in our work place on the honesty and professionalism, we show to our peers, our work and our self and most importantly to our customers.

Core Values
We listen to our clients, customers and to each other. We strive to create quality you can see, hear and actually feel. We make decisions that affect our clients, customers and each other only after we have facts. We take pride in our work and our company. We believe that trust is earned by conducting our business with integrity. We respect each other and recognized and reward excellent performance. We have a passion to do things right the first time. We believe that following up is a key to success-catching people doing things right is the ultimate results.

Mission Statement Leather Field (PVT) Ltd. is recognized as market leader and pre-eminent player in term
of quality, reputation and profitability. Leather Field (PVT) Ltd. is committed to its distinctive quality and customer value in all aspect of business. Develops a team culture encourages them to discover that the pursuit of excellence is truly a rewarding aspect of their career with Leather Field (PVT) Ltd.

Comments on Organizational Structure


In Leather Field (PVT) Ltd. departmental hierarchy is flat, wide span of control, centralization and communication is from top to bottom. However these theories are not strictly applied.

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Chapter # 3 Learning and Personal experiences

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I started my internship with Merchandising Department which is also known as Marketing Department. Being with a well experienced merchandiser, Ive spent most of my time in this department because it is the core department of overall activities happening in Leather Field (PVT) Ltd.

Marketing/Merchandising Department
Marketing Department is usually known as Merchandising Department in Leather Field (PVT) Ltd. working under the head of Mr. Sohail (Managing Director Marketing). Marketing Department has a team of professional merchandisers that provides its services to keep customer follow up, production/order updates to customer and sampling to them is the main activities of merchandiser. This department serves to existing as well as new customer. But in case of companys own brands there is a sales force in foreign countries. They sell the products by personal selling through outlets in USA market. Marketing department ensures the delivery of garments to its customer at right time and right place with best quality. Usually big customers feel happy to have their full production under one roof by a single company. So it is an edge for Leather Field (PVT) Ltd. to produce large quantities of garments with quality. Leather Field (PVT) Ltd. had recently made an expansion in its own brand portfolio. Leather Field (PVT) Ltd. is a trend building company in the market. It usually focuses on bulk production and those customers who place huge quantity order. Merchandisers retain current customers by providing them the right product at right time with efficiency and effectiveness is being followed. Now-a-days market is more intense and customer is aware of the happenings and changes in technology, so to retain a customer is more difficult for a merchandiser, but this all is being done by these ambitious merchandisers. Marketing Department has been divided into two parts.

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a)

USA division
Leather Field (PVT) Ltd. has its own showrooms in USA working under the supervision of Mr. Sohail. USA division works in Canada and USA Market.

b)

Europe division
Mr. Imran (General Manager Marketing of Europe division) goes annual fairs in European countries and displays the company products into that fairs. Europe division includes European countries. This division is also targeting other countries like Hong Kong, Malaysia, Bangladesh etc also.

Marketing Department brings business to the company by communicating to new as well as old customers. In case of new customers, merchandiser continuously follows him to have a deal with him. Sometimes customers also visit the company to check quality standards. Usually customer based products (garments) are produced. Thats why company does not need spend so much time and money on conducting research and development. At the start of process, first sample sent to customer is known as proto sample. When customer feels some attraction in his sample, then places a PO (Purchase Order). At this stage again a pre-production sample is sent to customer to confirm the quality of that specific garment. The process starts with the sample request by customer for bulk production order.

Sampling Department
In this department employees are more professional as compared to other production halls. There are abrupt and rapid changes taking places in fashion and customer behaviors, so more accuracy and quality is required in a sample. There is a team of workers and daily production of samples is nearly 30 to 40 samples. These samples are made exactly according to specifications given by the customer.

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Function of Sampling Department


The merchandiser sets all the information in specific format for sample development. This information is forwarded to the PC office for further processing. Then 3 copies are sent to; 1 copy goes to sample pattern room with one copy of detailed sketch 1 copies go to the sample room with one copy of detailed sketch 1 copy goes to sample cutting department If the sample is approved, material card is prepared for all the record of accessories. The export office sends it to the customer for his approval. If the sample is approved this is called proto sample. After that customer placed for bulk production order to the company. The order contains all the informations regarding production.

Sample Development Process


Before starting the process of sample development, accessories required for sample and leather is arranged according to the customer requirement. There are the following processes involved in sample development; Pattern development: In first step, the sample request sheet is forwarded to the Sample Pattern Making Room with all information and requirement regarding size, style, design etc. Leather cutting: The next step is for sample leather cutting. After the development of required pattern, the process of leather cutting for sample is done in sample cutting room.

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Sample Stitching: The sample is stitched and forwarded to finalize through buttoning, touching, polishing and trimming processes. After the completion of the above steps, the sample is checked by merchandiser and PPC with reference to the tech pack.

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Working Flow Chart for Sample Development


Sample request from the Customer

Sample request sheet preparation

Sample Request Send to the PC office

3 Copies of Sample Request -1 Copy goes to Sample room -1 copy goes to Leather Department -1 copy goes to Pattern Department

Prototype Sample

Okay

Some Changes

Finalizing Sample

Alteration/repaired

Sample Material Card with all Technical Details

Dispatched to Customer

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After completing the process of sampling, if the customer is satisfied with the sample then customer places PO (Purchase Order) to the company. The process of order again starts with merchandiser, who is responsible to convey the right information to PC office with all required detailed specification by converting the order into WO (Work Order) which is a specific format of the company.

Purchase Order
Purchase Order is the process to confirm that all inquiries about the order is processed efficiently to ensure that customer requirements for leather products are completely checked and clarified and deviation (if any) is noted before submission of an offer. Deputy Director marketing/export manager is responsible to review the specified requirement of the customer. Merchandiser negotiates the price of the product with the customer on the basis of Costing Sheet and sends PI (Performa Invoice) for customer approval before starting the production.

Procedure
Processing customer enquiries: Order is reviewed and confirmed by General Manager. Assistant export manager or export manager for Europe prepares Performa Invoice which is approved or signed by the factory manager and copies are then forwarded to the PCO (production co-ordination office). The contract includes the following details: a. Order number b. Style number c. Quantity d. Price e. Delivery time f. Mode of shipment g. Characteristics of articles h. Other requirements by the customer

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Revision of Contract
The changes or amendments arising during the course of contract or order execution are reviewed and confirmed by the merchandiser. An amendment to a contract or order for USA, orders is properly transferred to the functional sections concerned through revised contract. An amendment to a contract or order for Europe, order is properly transferred to the functional sections concerned through office memo.

Procedure Map Contract Review

Contract review
Customer enquiry
Review of customer enquiry Confirmation of orders by GM Praparation of PI Approval by GM Preparation of WO Circulate WO to all concerned

Amendment required in contract


Review of amendment Approval by GM Communcate to client Communicate the amendment to all concerened in Leather Field

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After the confirmation of order, all technical deatials and teck pak with WO is send to PCO (production co-ordination office) for further processing of production.

Production Co-ordination Office


Production Co-ordination Office is to ensure the procedure that all the aspects of co-ordination are covered before starting production. Production matters with Production Manager and Factory Manager do co-ordinate to set and achieve Quality objectives for production. PC office maintains the record of technical details of all styles and customer data and maintains adequate record of all samples placed in sample room. After that PC office forwards production orders and all technical details to Production Manager for production.

PC Office Inflow Process


The process when the production order is received is illustrated below. PC office receives a PO from merchandiser for production processes. Gets Leather Consumption receipt regarding the spcific requirements by customer. In case of repeat order, PC office reviews all previous infornation. Makes Necessary changes Sends BOM to material store Sends BOL to leather department

Diagramatically it is shown as;

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PC Office Inflow Process


Work Order Sheet
Create a BOL (Bill of Leather)

Send to PCO

Leather Deparment
Leather Arrangement (Local)

Create a BOM(Bill of material)

Materials Store

In Store/ Request

Material arrnagements

Local/Imported Leather Demand

Local/Imported Material Demand

Production Planning

Production Plnning

Linning Cutting &Stitching Dept. Packing/ Inspection

Leather Cutting & Stitching Dept.


Fianl Insepection (Quality Control)

Ready Product Ex-factory

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Material Planning and Controlling Department


This is the main store of Leather Field (PVT) Ltd. and supervised by Mr. Hafiz Naveed Sabir. He is a well experienced and professional person. This department confirms the availability of material at time of production. Material is issued by this department. It generates material purchase request in case of shortage or absence of any new or routine material. In this department ledgers are manually maintained by book keepers that ensures the stock in quantity. In this department, according to customer specifications all required material is planned and arranged from local or abroad market. To arrange material from abroad an import material request is generated for import department. And a purchase request note is forwarded for local purchase request to local purchase department. There are four ledger keepers that maintain their assigned ledgers regarding to different materials that have to use in a garment. According to BOM (bill of material), material arrangement is the key responsibility of them. When production is started against MIN (material issue note) is generated by PC (production co-ordination) office to get the required material from store. Documents being used for material issuance, control and analyze the inventory are named as: Store Receiving Report (SRR) Material Receiving and Inspection Report (MRIN) Material Issue Note (MIN) Material Return Note (MRN) Purchase Return Note (PRN) Material Receiving Report (MRR) Bill of Material (BOM)

These documents are used mostly by book keepers to systemize the process in a better way. There are Material Reservation Sheets in ledger books that have a specific format suggested by ISO. In this sheet there is a facility to correct and adjust the issuance of receiving transactions.

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There are two types of adjustments, book keepers have to make: Issue Adjustments (Issue ADJ) in case of issued material without MIN which is adjusted Received Adjustments (RCVD ADJ) in case of return of issued material without properly recording the transaction occurs that is adjusted by book keeper manually All these activities are being performed in Inventory Planning and Analysis Department but are being fed in computer. There is an oracle based software package that helps to generate different reports and analysis. Profit or loss in a purchase order is also analyzed at the completion stage of the product. In material reservation sheet a specific code is assigned to a particular material that helps to locate the data in computer. Bill of Material (BOM) Bill of Material (BOM) is prepared for material planning for bulk production of the approved production orders. Production Schedule, MIN & MRN Production schedule is prepared and orders are put forward with all technical details to production manager. MIN (material issue note) is issued to production for material issuance from stores MRN (material return note) in case of any return from production to stores

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Procedure Map of Inventory Control Department

BOM

Material Store

Linning

Snaps Buttons

Zippers

Labels

In Stock

Out Of Stock

Imported

Local

Demand

Demand

Approval By: -Material Planning Manager -Import Manager

Approval By: -Admin Manager -Material Planning Manager

import Department

Purchase Department

Supplier Purchase Order

Supllier Purchase Order

Performa Invoice

Material receiving report

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Receipt Department

Ok

Rejected

Material Store

Return To Supplier

Reserve Gainst Work Order

Production Office issues MIN Material issues To Production Halls

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Procurement
The procurement activities of the product materials in Leather Field (PVT) Ltd. are systematically executed and controlled, and that all the product materials purchased from subsuppliers meet specified requirement. It is also very important in selecting sub-contractors or their ability to meet the specified requirements and to ensure consistency in the supplied products by evaluating the suppliers performance on regular basis. Deputy Director marketing is responsible for purchasing leather from local or international markets whereas Admin & Purchase manager is responsible for purchasing the non-leather items from domestic market and Import manager is responsible for purchasing the materials from international markets by opening L/C. Deputy Director Marketing, admin & purchase manager and import managers evaluate suppliers performance in co-ordination with Quality Control Manager.

Demand note
When BOM is send to Inventory Control Department then Demand note is raised indicating specifications of materials to be purchased, unit of measurement, required quantity, in hand stock, consumption during last quarter/year (imported materials), projections (import materials) and required delivery date. Demand notes are classified as; For local (in country) purchase For import action

The demand notes are handed over to respective in-charges, namely deputy director marketing, admin & purchase manager and import manager for future action.

Purchase Order
Purchasing order containing specifications, technical and commercial details of the requirements are prepared by the assistant manager leather planning and procurement and authorized by

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deputy director marketing (for leather). For non-leather items these are authorized by the manager purchase prior to the release to the sub-suppliers. Purchase data for leather items, locally purchased materials and imported materials is maintained by the deputy director marketing Admin & purchase manager and import manager respectively. The data is also maintained in shape of computer record.

Receiving Inspection and Testing of Leather


Leather inspection/selection is done by the leather selection at the time of receiving. Locally purchased leathers are initially selected randomly, 5% of each receiving, for verification of the specified requirements and MIRR is prepared. If defects are found in random selection than 100% inspection is done before issuance to production or taking leather into store and leather selection report is prepared. Imported leathers are selected randomly, 5% of each receiving, at the time of receiving and issued to production and taken into stock. Leather tanning process is monitored by the deputy director or his nominee at the suppliers premises if required. Non-conforming leathers are kept in allocated areas with identification of rejected. In case of urgent production requirement, leather is may be issued to production for prior to selection. Such leather for urgent production is identified by urgent stamp on the identification steps. In case non-conforming is found during, the leather is withdrawn and replaced.

Receiving Inspection and Testing of Material


On arrival of van/truck/cart, at factory gate, receiving in-charge informs in-charge material store and material planning officer. Materials are brought into the material stores allocated area for receiving inspection. Accessories and general items are inspected by authorized persons under supervision of incharge material store and material planning officer before acceptance for quality and quantity. Expert opinion is acquired from FM/export manager where required.

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Routine accessories and general items are inspected by authorized persons under supervision of in-charge material store and material planning officer before acceptance for quality and quantity. Expert opinion is acquired from FM/export manager where required.

In coming accessories and general items may be issued for use in production only in case of urgent requirement. Such items are recorded before issuance. After inspection material is send to main store where it is placed in its relative sluts. When production started the required material is issued to this department. This department sends its daily report to material store and production department.

Import Department
Mr. Sajid the import manager is managing the import activities in Leather Field (PVT) Ltd. When a BOM (Bill of Material) is forwarded to material store department, material store department confirms the available materials and in case of less or absence of material a demand note is generated for local or imported purchase. At this stage import department sends a request to the companys supplier to provide the mentioned material. For this purpose letter of credit is usually used to ensure the delivery of material with quality and speed. Import usually takes time of two to four weeks. For imported materials inquiries are placed by fax or e-mail to the suppliers and Performa Invoice is requested. If all the conditions of the Performa Invoice are acceptable then order is placed. Material usually imported from China, India, Taiwan, Korea, Japan, Singapore etc. Usually import of materials is made like lining, Zippers, logo, buttons, labels, tapes and other situation based materials.

Out- source processes


Embroidery, embossing and gel printing etc are to be sourced by Leather Field (PVT) Ltd. from the outside if required with the supervision of Admin & Purchase manager is responsible.

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Procedure map initiating DN and Processing PO

Initiating DN and PO

Raise Dn

DN received by purchase dept. Assessment by purchase dept. Approved list of suppliers PD collects quotations (if required) PD prepares P.I. (if required)

If not ok

Dead file

Prepare PO

Ensure adequacy of specified requirement Release of PO to supplier

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After confirmation of material and leathers availability, the production process starts according the customer instructions and requirements.

Production Planning and Controlling Department


Leather Field (PVT) Ltd. has a separate department known as production planning and controlling (PPC) department. This department organizes the activities of that workers have to perform in their daily work regarding production for the customer order. 3000 garments daily is a large amount especially in leather. In this department job specialization concept is being prevailed. Every employee does his assigned repetitive job in his working hours. So this is beneficial for the company to get maximum production by using its resources in a more efficient way. There are lines of workers to complete the process for garments. There are five big halls for processing of leather products for different customers and for companys own brands as well.

Production Process Pattern making to Stitching


It is a systematic procedure to maintain and control the process covering pattern making, leather selection, leather/lining cutting, numbering and stitching.

Pattern Development
In-charge pattern section receives pattern preparation order (PPO) from PC office for preparing patterns for the required styles. In-charge pattern section ensures that measuring tapes/drawing instruments used in his section are kept in good position. Damaged, torn out or misprinted graduated scales are properly replaced or in good condition. Patterns are cut according to the work instructions. All pattern elements are kept properly and stored in allocated areas or pattern room so that they can be easily retrievable when required. All pattern elements of one design or size are tied together with nylon band before storage to avoid the loss of any element.

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In-charge pattern section stamps CONTROLLED on all elements of patterns prepared by the pattern makers of his section is inspected and passed by him. Damaged elements/patterns are removed immediately and replaced with new ones. Each pattern elements of a design/style is marked with style # and other relevant info for identification. In-charge pattern section ensures suitable working environment is maintained in his section.

Leather Selection
Selection is made according to work instructions. Leather selection is made randomly or 100% as per requirements. Suitable illumination is provided at the time of selection of the leather. If selection result is satisfactory, leather is stocked into main leather store. Non-confirms leathers are shifted to Rejections area until these are returned to the suppliers. Selection report is prepared to note down selection results and then figures are entered in appropriate ledgers.

Leather Cutting
Leather cutting is carried out according to work instructions. Leather cutters receive leather from sub-store according to the assigned job. In-charge leather cutting hall prepares/approves master patterns (Hard Pattern) for leather cutting if the style is new or the existing hard pattern are not in good condition. Leather cutters inspect and match leather skins for color, shade, thickness, grain look, wrinkle etc. Before cutting Garments: Leather wastage is removed after suitable intervals so it does not obstruct smooth cutting operation or disturb working of cutters. Each leather cutter submits a daily cutting report to the in-charge leather cutting hall showing details of leather received, no of garment cut and balance leather.

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In-charge leather cutting hall prepares a daily cutting report showing total number of garments cut, actual leather consumption and balance number of garments. This information is compiled order wise.

In-charge leather cutting prepares Daily Cutting Report summarizing production of all cutting halls and submit to production manager. Production Manager submits Daily Cutting Report summarizing order wise production of all cutting halls to PC office MIS.

Lining Cutting
Lining cutting in-charge ensures the cutting of lining according to the work instructions. All lining cutters sends lining cutting report to in-charge lining cutting intimating # of garments cut and balance quantity. In-charge lining cutting submits Daily lining cutting report to Production Manager showing total lining, quality, fusing etc cut in his section.

Leather Numbering Leather numbering in-charge ensures the cutting of lining according to the work instructions.
In-charge leather numbering controls the numbering process of garments in hall. In-charge leather numbering prepares daily numbering report showing total number of garments tagged with number or ready for issuance to stitching operation and submits this report to in-charge cutting hall who in turn forwards this to in-charge cutting and production manager.

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Stitching

Stitching operation is carried out according to the work instructions.

Stitching process is carried out by qualified stitching operators in chain line production system according to provided specification/design/style/size and reference sample. Each stitching line is controlled by a line in-charge who guides stitching operators in understanding design/style of the assigned order. Each stitching line has a line monitor who insures that all required leather/lining cutting and accessories are available to the stitching operators as soon as possible. Helpers are provided to stitching operators for assistance in stitching so that maximum time of stitching operators is utilized in stitching and the time consuming work is done by helpers. This way maximum productivity is obtained from the stitching line.

Line checkers inspect stitching of garments after completion and get them fixed if rework is required. Stitching hall in-charge organizes all activities in this hall and solves problems if any. Fusing cloths/tapes are used as interlining. Lining stitching is carried out in separate lines. Sewing process is carried out in sequence, similar as shown in sewing process flow chart according to the requirement of the order/style. Daily targets are set for individual stitching lines and line in-charges are responsible for achieving daily targets. Production manager has authority to resolve all differences for quality.

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Map Pattern Making to Leather Lining, Cutting, Numbering and Stitching

Leather selection
Leather stock Leather cutting Numbering

Pattern preaparation Issue of lining for store


Pattern drawing Master Pattern cutting Identification marking If No Approval by Chief Pattern Master Master Pattern storags Cutting Pattern storage

lining cutting

lining matching

Stitching

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Issue of Garments for Finishing to Delivery


It is a systematically procedure to establish and maintain the control of process from issue of garments from finishing to delivery process. After completion of stitching process, the garments are issued to finishing department where finishing processes are carried out. Button hole/Kaj making, button attachment, snap attachment and eyelet attachment are carried out in the buttoning section according to the requirement. Garments are then trimmed out for extra leather and threads in the trimming section. Then cleaning and polishing of garments is done. Garments are repaired or alterations are made as required. Quality checking is then carried out after repair and alteration. Pressing of garments is carried out by electric or stream irons. Final checking is then carried out after pressing garments by Quality Control Department.

Quality Policy Statement


Leather Field (PVT) Ltd. aims to be the producer of the world class leather garments and leather products. We want to achieve the landmark through Innovation in fashion, styles and leather Enhancement of craftsmanship Dedicated and skilled workforce Continuous improvement through workers research Quality being our combined responsibility Honoring our community

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Quality System
Quality System in Leather Field (PVT) Ltd. is a documented quality system for ensuring that product has been finished according to the specified requirements of the customer. It is for ensuring the effective implementation of the quality system as an objective evidence of compliance. For this purpose, Deputy Director marketing provides initial product requirements and customer specified requirements. Factory manager evaluates specification of finished leather, other materials and accessories required for the product.

Outline

Level 1

(Manual Quality)

Description of Quality System

Why

Description of Individual Function and departmental Functions

What When Who Where

Level 2
(Standard Operating Procedure)

Level 3
Forms Registers

How Records Reports

work instructions & Job description

Proof & evidence

Level 4

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Packing As per instructions and requirements, packing operation is done. Button or zip closing is carried out and packing cards/foam sheets are inserted into garments. Button covers and sponge or foam coverings are placed on buttons. Silica gel and extra buttons or eyelets are placed in the garment pockets as required. Hangers are placed into garments if required. Final inspection is carried out by quality inspector. Hang tags, price tickets etc are attached to the garments according to the requirement. Garments are then placed in polythene bags. Size stickers, barcode stickers etc are placed over polythene bags as per requirement. Garments are then stocked in allocated area for packing. Work instructions are followed for all packing activities.

Packaging Packaging is carried out in two ways as per requirement of the customers. a) GOH Hanging b) GFP Cartons

If shipment is required in GOH containers, garments on hangers are shifted to GOH Hanging storage area. If shipment is required in Carton Packaging, the garments are packed according to work instructions. Cartons are marked with required info with stencils or ink markers. Also stickers are placed on the cartons, if required. Polythene sheet is wrapped and sewn on cartons, if required by customer. Work instructions of packaging are followed.

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Delivery Shipment documents are prepared. Shipment marks are checked for proper destination. Less than container load consignments are transported to Dry port in vans on trucks. Full container load consignments and GOH Hanging consignments are stuffed in containers at factory premises and then transported to Dry port for custom clearance and onward movement. Maintenance Suitable Maintenance program is prepared to keep all the production machines in good condition. Stitching operator ensures proper oiling and cleaning of their sewing machines. Maintenance record of sewing machines is maintained in every stitching hall. Preventive maintenance schedule/record is available with in-charge mechanical maintenance. Log books for diesel generators sets are maintained by in-charge electrical maintenance.

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Procedure map garments issue for finishing to delivery


garment issue for finishing ironing button/zip clossing/packing cards/foam placing

button markin/sewing/ pressing

issue to packaging

button cover

trimming

final checking

silica gel/extra button/eyelet packet placing

polybag drawing, barcode/size label hanger/hanger indication policy

polishing

touching

price ticket/hang tag

quality inspection

Garment allocated area Carton packing area Strap banding Carton marking Hanger room

Hanger Containers

Polypropylen e Sheet Sewing Printing & marking

Delivery

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In Process Inspection and Testing


Mater patterns are inspected for conformance to specify requirements by chief pattern master/in-charge pattern section. In-charge leather cutting hall inspects hand patterns before forwarding to leather cutters. The leather cutters also inspect the hand patterns before cutting. Lining cutter patterns are inspected by in-charge lining cutting hall. In-charge lining cutting inspects lining cuttings for proper numbering and storage. In-charge leather cutting inspects leather in sub-stores before issuance for cutting operator. Leather cutters visually inspect leather during leather cutting according to the work instructions/checklist provided. During numbering all the elements/panels of the garment and visually inspected according to the instructions provided. Stitches operators visually inspect the work during the stitching process to the reference sample/specifications/sketches provided. The line checkers prepare first piece stitching approval report. Line in-charge continuously monitors the stitching operators activities for conformance of the allocated job. Stitching hall in-charge monitors production of all stitching lines in his hall and inspects garments randomly/ when required. In-charge production revolves problems/matters regarding quality. Quality checker inspects garments for leather/accessories/stitching according to the requirement. Before dispatching in-charge packaging inspects/checks cartons for proper marking.

Final Inspection and Testing


Before packing 100% inspection is done.

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Identification and Traceability


It is a system for identification of product material i.e. leather garments to ensure traceability of leather garments. Quality control manager ensures the traceability and identification of product materials and in-charge store ensures the labeling of all the materials in stores. Procedure Leather is identified as of an animal origin such as goat/sheep/cow etc selection grade and thickness (gauge) such as identification slip. Procured materials, other than leather, are identified by a product code number. All coded materials are categorized as standard stock materials. Leather garments are identified by style number, order number, color/leather and size. Cut pieces of garments are handled and marked with order number, style number, size and quantity. During production process identification card is used for the identification and traceability of garments. This card contains info about stitching hall /line number/style number/leather/color and sizes. Quality control manager ensures implementation identification and traceability, where contractually agreed. Record of identification cards and log is maintained by the in-charge finishing department.

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Identification and traceability

Identification and traceability

Identification

traceability

Purchased material

Pattern

Garments

Finished Garments

Identification in stores

Identified by Markings

Identified by Article # & Size #

Identification card

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Internal Audit
Internal audit is to examine the quality management system independently and systematically so as to evaluate its effectiveness ensure that all procedures and activities are implemented for meeting overall objectives of the quality system. MR (management representative) is responsible for the preparation of audit plan/schedule and for the implementation of internal quality report. Head of department/section in-charges are responsible to agree for implementing the corrective action after internal audit. Procedure Audit Planning: Audit plan/schedule is prepared by MR at the beginning of each year or during the year when needed. After approval of the audit plan/schedule from the MD, the copies are distributed to all auditors. Every section is audited at least twice a year. A copy of audit schedule is circulated to all concerned. MR selects audit team for each audit. The persons may be from any the department, but not from the same department which is being audited. Members of the audit team continue to work in their respective positions and are available to conduct the audit when required. Audit Programming: Audit is performed by using audit checklists. Auditor produces sufficient objective and evidence that QMS is fully effective and the work is being performed in accordance with the established procedures. NCR (non-conformity report) is prepared identifying non-conformity/deficiency.

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Corrective Action Manager/Section in-charge is responsible to agree and implement the required corrective action. All non-conformities are removed through follow up action on re-audit if required.

Audit Reporting When the action has been satisfactory completed, audit is treated as closed and report is submitted to MD and/or in management review meeting. Audit Record MR contains the record of audit, corrective action, follows up and ensures effectiveness of QMS.

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Map Internal Audit


Internal Quality Audit

Audti Planning

Audit Schedule

Performing Audit

Corrective Action Recomended

Compliance of Corrective Action

Follow-Up Audit Closed


MR Maintains Record Review in Management Meeting Continuos Improvement

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As my internship program based upon merchandising. So as being a merchandiser internee, I have also visisted the HR department in Leather Field (PVT) Ltd. because it is necessary for a merchandiser to know about the policies and benefits for the workers.

Human Resource Department


Wages and Hours of Work Policy
Wages are paid to the workers under minimum wages act 1961.

Hours of work
Under section 34 of the factories act 1934, hours of work in a week are 48. However hours of work in Leather Field (PVT) Ltd. are as under.

Summer timings
8:00 a.m. to 5:00 p.m. (Interval for lunch and prayer 12:30 pm to 1:30 pm)

Winter Timings
8:15 a.m. to 5:15 p.m. (Interval for lunch and prayer 12:30 pm to 1:30 pm)

Wages
Less than 18 years workers are restricted. Unskilled workers are paid Rs.6000/- monthly according to Punjab Government Gazette Notification Law and amendment is done time-to-time as per change in law by Govt. whereas skilled workers are paid according to the job specification by law and changes are done when according to the amendment by Govt. Company also provides annual promotion and increment for the performance.

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Contractual Employees Contractual employees are paid according to the contract approved by the employee and employer with mutual consent. Overtime Pay Double pay is paid in case of employee hasnt work more than 9 hours in a day or 48 hours in a week.

Appointment
There are two rules of appointment

Office workers Employees


1. In case of office work employment e.g. office assistant, A/C assistant, store keeper, computer operator, clerk etc then in-charge or head person of relevant department sends a written note to admin manager. It is the company policy to favor the applications that already they have. Admin manager goes through the applications in detail. Then the desired persons are called for interviews. If the applications for relevant post are not available then job requirement notice is published through newspaper or Sialkot Chamber of Commerce. 2. Candidates are requested to bring along the ID card, education and experience certificate and 4 recent snaps. 3. An interview panel is held for appointment and then report is send to the admin manager. 4. Admin manager issues appointment letter along with an information book regarding the benefits and rules of the company. 5. There is no discrimination in appointment regarding religious, political, background or gender etc. 6. Selection always sure on merit 7. After appointment, employee is inspected by a register medical officer within first week. 8. After that employee is trained regarding his/her relevant work as well as fire fighting accident.

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Production Workers
Because of chain system is exist in Leather Field (PVT) Ltd., so in case of absence of any person, causes to stop the production. Thats why the in-charge or head person is allowed to provide the opportunity to the other new persons along with ID cards, 4 recent snaps, practical experience for one week training. 1. If the person fits to the job then he/she will be appointed and the admin manager issues the appointment letter. 2. Admin manager issues appointment letter along with an information book regarding the benefits and rules of the company. 3. There is no discrimination in appointment regarding religious, political, background or gender etc. 4. Selection always sure on merit 5. After appointment, employee is inspected by a register medical officer within first week. 6. Factory card is issued to the worker for attendance record.

Training
Training is to ensure that all the employees of the company receive adequate training in quality management system, develop skills in relevant fields and safety on the work place to meet or exceed customers expectation. Training establishes procedures for determining training needs, providing the training and keeping the records of training provided. Director Admin or purchase manager assures that all new employees meet the minimum requirement for the position being held and head of departments identify and ensure that appropriate training is provided to their staff. Alternatively the trainings needs are identifying in management review meeting.

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Training Policy
It is the Leather Field (PVT) Ltd. training policy 1. To identify the training needs which one regularly receives. 2. To determine the training program 3. To maintain comprehensive record

Workers Training
1. Newly hired persons are trained relevant to the job within 15 days after appointment so that he/she may be able to perform well. 2. 14 to 20 years old boys are sent to the Govt. Apprenticeship Training Center with monthly scholarship as well as training equipment also. After completion of training, if company requires his services then he will be appointment. 3. Punjab Vocational Training Council Govt. of Pakistan and Toyotas co-ordination worker are trained about leather so that he/she may be able to earn.

Procedure
List of employees is maintained by admin/purchase manager. Training needs are identified by the head of departments in management review meeting. Trainings are provided by both in-house program and external courses. Training records are maintained by the admin/purchase manager. Effectiveness of training is measured by improvements in results and annual performance.

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Procedure Map for Training


Training

List of employees

Identification of training needs in Management Reviem Meeting

Training provided -In-house -Institutional -Foreign

Effectiveness of training Improvements in performance

Continuos Improvement in Product Quality

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Benefits and Allowances Policy


1. 2. 3. 4. 5. 6. 7. Weekly holidays Annual holidays Casual leaves Sick leaves Festival holidays Maternity leaves Compensatory holidays
Sunday has been declared as weekly holiday.

Workers who has completed a period of 12 months continuous service is entitled for 14 consecutive days. Every worker is entitled for 10 days casual leave in a year. 16 days are allowed to every worker for sick leave on half pay in a year. Every worker is allowed holidays with pay on all days declared by the Government. Three months maternity leaves are granted to the woman workers. If worker works in holidays then he/she is being paid over time allowance and compensatory holidays. All the workers are registered under Punjab Employees Social Security and also provided with all the financial benefits under social security Ordinance X of 1965. Gratuity is paid on the rate of 30 days wage for every completed year of service. Through Punjab Worker Welfare Board, talent scholarships are given to the talented children of the workers. In case of death of any worker, Rs. 200000 is paid to the dependents of the worker. Bonus is paid to the workers under 10.C of the Industrial & Commercial Employment (SO) Ordinance 1968. The facility of fair price shop is provided for the workers where they can get necessary items on cheaper rates. Rs. 30000 is being paid by the Punjab Workers Welfare Board in case of marriage of workers daughter. Any worker who works for more than 48 hours in any week is entitled in respect of the overtime worked to pay at the rate of twice comparatively to his ordinary rate of pay. Dearness Allowance/Special Allowances are given to workers as and when declared by the Government.

8.

Registration under Punjab Employees Social Security

9. 10. 11. 12. 13. 14.

Gratuity Talent Scholarship Insurance Bonus Fair Price Shop Marriage Grant

15. 16.

Overtime Allowance Allowances

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EOBI Welfare office deals with and follows the Employees Old Age Benefits Institution Act 1976. Following are the benefits that are being offered to the employees in Packages in accordance with the Act. Employees Old-Age Pension Scheme: All the employees shall become members of Employees Old-Age Pension Scheme that is set up by the Government and shall be entitled to pension after attaining the age of 58. The company contributes 5% of an employees minimum wages/salary (6000 Rs), 1% from the employees toward this scheme.

Grievance Handling Procedure


1. On receipt of complaint against workers charge sheet is served. 2. On receipt of reply to the charge sheet notice of inquiry is issued and inquiring office is nominated. 3. Proper inquiry proceedings are adopted and full opportunity is provided to the worker to defend himself. 4. The worker may submit the grievances notice to the chief executive/director admin against the decision of the inquiry officer.

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SWOT Analysis
This is used to know the strengths, weaknesses, opportunities, and threats as well.

Strengths
High Growth Bulk capacity of production Ready availability of highly skilled and cheap manpower Large raw material base Continuous emphasis on product development and design upgradation Biggest tannery unit in whole Asia

Weaknesses
Lack of strong presence in the global fashion market Lack of awareness of international standard Less demand for companys own brand in USA market Some Less skilled workers regarding job due to favoritism of head person

Opportunities
Use of e-commerce in direct marketing Growing fashion consciousness globally Use of information technology and decision support software to help eliminate the length of the production cycle for different products There is space to enter into new markets

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Threats
New entrants from local as well as in international market Government policies and political instability
Limited scope for mobilizing funds through private placements Difficulty in obtaining bank loans resulting in high cost of private borrowing Stricter international standards High competition from East European countries and other Asian countries

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Chapter # 4 Recommendations and Conclusions

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Recommendations
Having analyzed the policies and procedures and through interviews with production workers and management employees, I inferred some recommendations which are as following: 1. Inventory record system is not easily accessible as manually ledgers are used to maintain the inventory record. The recording system should be totally computerized so that merchandisers or relevant persons can easily access to the inventory record for further coordination with customer, PC office and sample department. It will save the company time especially in sampling process. 2. Head of departments are free to hire employees respective to their department. HR department should come forward in hiring process to minimize the element of favoritism. A panel interview with relevant head of department and HR department will surely create a pool of potential candidates and right person for right job can be sure. 3. HR department should communicate to the employees regarding benefits, facilities and company policies to increase their motivation level and to create a sense of belongingness among employees. It will be beneficial for the productivity and work quality. 4. Company should introduce the performance appraisal system by distributing incentives and bonus among workers on annual or order completion basis. The evaluation should be on basis of their behaviors, task outcomes, improvement potential and the most important quality in work with the co-ordination of immediate supervisors. This will surely bring the quality and work improvement in their daily routine work. 5. There are a lot of companies which are also serving in same industry with better quality. Leather Field (PVT) Ltd. is focusing on B 2 B strategy and is following an unsound advertising strategy for its own brands. It would be better to hire an advertising agency to make strong positioning of its brands especially it should launch brands in European countries. A major focus of organization for promotion of its products should be through Point of Sales. Initially it should launch its own brands in major countries like

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Germany, France through stores for branding and customer awareness with proper research. 6. Company mostly prefers to the internal hiring and doesnt focus to the outsource skills. It should introduce off job training by sending to its workers to different training programs to enhance technical skills and new techniques regarding production and management. After training programs, employees should be evaluated through; Direct feedback from employees Task outcomes Performance appraisal

The trained employees will train the other employees. It will save the company cost by avoiding foreign teams for employees training. 7. Leather Field (PVT) Ltd. is not using even a single e-marketing strategy for promoting its products. Website of the company does not show any detail of its products and very concise information about brands is given on the web. Organization should use emerging media like website, Google, AdSens, Google Adword, blog, vlog and social networking websites for publicity of its products and to attract new customers. 8. R & D is not as strong as Leather Field (PVT) Ltd. is export oriented company and is dealing in fashion industry. As fashion changes time to time and competitors can take the place due to lack of R & D. By doing this, company will be aware of global changing trends and can prepare its workforce and resources. 9. Duty of in-charge quality control in production halls should be rotated to different halls on monthly basis and reporting system about their daily working in documented form to the Quality Control department should be introduced. As it is the very first step in quality control system. 10. Cutting, stitching, trimming, buttoning, checking, polishing and quality control departments should follow the Independent policy rather than Inter Related. Counting should be made before receiving of leather products by each department to avoid the loss of products.

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11. Quality Control department should maintain the manual record before issuance of products to different departments. It will sure the traceability of products before shipment with saving of the delivery time.

Conclusions
Leather Field (PVT) Ltd. introduced chain line production system first time in Sialkot and has a competitive edge of bulk production capacity with 3000 employees which enable the company to produce a monthly capacity in excess of 80,000 pieces. A Line System Production is very strong under the supervision of experts trained by Korean team to ensure consistent sizing & customer requirements, thats why company is capable of introducing a world class quality garments. Leather Field (PVT) Ltd. is the largest exporter of Pakistan in leather garments since 1990. The production department is using the specialization of job concept that has made it more beneficial for the organization. Leather Field (PVT) Ltd. is committed to running its business successfully and efficiently, providing long term benefits to its employees and enriching the lives of those whom it serves by fulfilling its organizational responsibility to the best of the ability. Company expects excellence from all processes, whether they relate to policy formation and accounting procedures or product development. A comprehensive Vertically Integrated Production Unit inclusive of a US$10 Million state-ofthe-art Tannery producing 60,000-75,000 sq. ft. per day of goat, sheep & cow leather. It has a hierarchy of wide span of control. Communication is from top to bottom and vice versa. All the departments are working together to achieve common goals. Companys advertisement policies are not so strong for its own brands but it is still able to maintain its leadership in market due to the fact that there is no major competitor in the market against bulk production capacity with quality thats why small competitors are unable to take any more market share. Leather Field (PVT) Ltd. is not using any e-marketing model of emerging media to attract any customer for orders or to communicate about their work quality to the target markets.

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