If you want that report contact on this number 0333-6519686

INTERNSHIP REPORT ON
MASOOD TEXTILE MILLS LIMITED



BY

Your Name
Roll #
Submitted in Partial Fulfillment of the
Requirements for the Degree of Master of Commerce


NATIONAL UNIVERSITY OF MODERN LANGUAGES,
ISLAMABAD, PAKISTAN.

August, 2014


National University of Modern Languages
Faculty of Information Technology and Management Sciences



It is hereby certified that the report has been thoroughly and carefully read and
recommended to the faculty of Management Sciences for acceptance of Final Project
Report by Your name, Roll #, Session (Sep 2012 to June 2014) Morning, in partial
fulfillment of the requirements for the degree of Master of Commerce at National
University of Modern Languages, Faisalabad.


Date: ________________

Supervisor: __________________________

Observer: ___________________________

Head of Department: __________________

i

ACKNOWLEDGEMENT

By the Grace of Almighty Allah, the most Merciful, the most Beneficial, I'm today
submitting my internship report; I have the pearls of my eyes to admire the blessings
of the compassionate, omnipotent, the Merciful and the beneficent Allah who is the
entire source of knowledge and wisdom.
Due to his bounteous blessings, I become able to contribute this comprehensive
assignment toward the deep ocean of knowledge already exists. Heart is warm with
love and thoughts have turned to the city of knowledge The Holy Profit (P.B.U.H)
His saying Learn from to Cradle to Grave inspired the strong desire in me to
undertake this course of valuable studies.
It would obviously be injustice not to mention the name of the people involved to
make this assignment possible and helped their utmost to make me understand the
overall operation of the company as of their best knowledge.
Despite of the most hectic schedule, Sir Shahid helped me so much. I'm really grateful
to sir for clarifying my concepts and making me learn from his experience. Whatever
I learnt from you will definitely help me in my upcoming study and the professional
life ahead. Thank you so much for being so co-operative and so helpful every time. I
hope sir I have been up to your expectations.
In the end, I'll like to thank all my other colleagues, Mr. Umair, Mr. Shoaib, and all
my other fellow internees, here and in branch, for their unconditional support and help
in making I learn in a good environment.


YOUR NAME


ii

DEDICATION


I want to dedicate my this project to following persons
Hazrat Muhammad (PBUH)
Qauid-E-Azam Muhammad Ali Janah
My Teachers
My Parents
And All Those Who Are Struggling And Fighting For Islam In Right
Directions.


iii

EXECUTIVE SUMMARY
The facts and figures of Masood Textile mill (Garments and Head office) make base
of this report. MTM having state-of-the-art technology has its own spinning, knitting,
processing, stitching and finishing Divisions. The establishment of MTM in 1984 was
in the shape of spinning mill, later on in 1994 its activities expanded to worldwide
popular garments business. Mr. Shahid Nazir is the sole proprietor and CEO of
MTM.
Yarn, Fabrics and apparels are the famous products of MTM. MTM worldwide
renowned customers are Sears, JC Penny, Nautica, Dockers and Vantage. Eighty-five
(85) % of the products are exported to USA and 15 % to Europe. Fashion garments
like Polo, Rugby and Henley shirts along with basic garments like Crew Neck Tee,
Sweat shirt, Boxer shorts and Bikinis are produced almost 120,000 dozens per month.
In-house embroidery facility is available and equipped with Tajima machine.
Professionals including two hundred MBAs are part of the team who actively show
the skills in true spirits that gave such heights to this mill. Textile engineers and
Industrial engineers are the others whose contribution cannot be questioned.
Masood Textile Mill feels pride for the achievement of its staff in shape of achieving
WRAP and ISO 9002 CERTIFICATION. The latest computerized Barcode system of
MTM that assures quality in every operation of production from spinning to packing
make it unique and the only mill in Pakistan with such state of the art technology.
Bar codes are fixed on every product that assures to be traced back to the first stage
and can be used to find out the root cause of shortcoming in the process.
Having in-house Yarn, Knitting, Fabric dyeing, Processing, and Laundry and Apparel
Manufacturing facilities make MTM a fully vertical mill.
The turn over of 55.83 million dollar in year 2004 depict its very profiting venture.
For constant exploration of quality products the R & D department is very
aggressively performing. They work hard to achieve TQM in order to full fill their
vision statement of To be the worlds best apparel company.


iv

TABLE OF CONTENTS

Chapter Page
ACKNOWLEDGEMENT... i
DEDICATION.... ii
EXECUTIVE SUMMARY iii
TABLE OF CONTENTS iv
1 CHAPTER NO 1 ................................................................................................... 1
1.1 History................................................................................................................. 2
1.2 CEO Message...................................................................................................... 2
1.3 Mission Statement ............................................................................................... 2
1.4 Vission Statement ............................................................................................... 3
1.5 Company Introduction ........................................................................................ 3

2 CHAPTER NO 2 ................................................................................................... 4
2.1 Corporate Objectives .......................................................................................... 5
2.2 Quality and ISO 9000 in Masood Textile Mills.................................................. 5
2.3 How do they Maintain Quality Factors? ............................................................. 5
2.4 Customer Profile ................................................................................................. 6

3 CHAPTER NO 3 ................................................................................................... 7
3.1 Management And Departmental Hierarchy In MTM Apparel Division ............ 8
3.2 Management Hierarchy in MTM ........................................................................ 9

4 CHAPTER NO 4 ................................................................................................. 10
4.1 Infrastructures ................................................................................................... 11
4.2 Departmentation ................................................................................................ 11
4.2.1 Human Resource Department .................................................................... 12
4.2.1.1 Recruitment: .............................................................................................. 12
4.2.1.2 Training and Development: ....................................................................... 13
4.2.1.3 Compensation ............................................................................................ 13
4.2.1.4 Rewards and Punishment: ......................................................................... 13

v

4.2.1.5 Performance Appraisals: ............................................................................ 14
4.2.1.6 Employee welfare: ..................................................................................... 14
4.2.1.7 Retiring and Termination: ......................................................................... 14
4.2.2 Objectives of hr department ...................................................................... 14
4.3 Information Technology Department ............................................................... 15
4.3.1 Introduction ............................................................................................... 15
4.3.2 Objective .................................................................................................... 16
4.4 Merchandising Department ............................................................................... 16
4.4.1 Merchandising Performs the Following Functions ................................... 16
4.4.2 Marketing Mix ........................................................................................... 17
4.4.2.1 Yarn: .......................................................................................................... 18
4.4.2.2 (Knitted Fabric:.......................................................................................... 18
4.4.2.3 Garments:................................................................................................... 18
4.5 Production, Planning and Control (PPC) .......................................................... 19
4.5.1 Functions ................................................................................................... 19
4.5.2 Accessories Demand Plan ......................................................................... 20
4.5.3 Martial Planning ........................................................................................ 20
4.6 Production Department ..................................................................................... 20
4.7 Production Department (Stitch To Pack) .......................................................... 22
4.7.1 Process Flow Stitching: ............................................................................. 22
4.7.2 Packing Process:- ....................................................................................... 22
4.7.3 Role of Inline Quality Control: - ............................................................... 23
4.7.4 Balance of Responsibilities b/wProduction & Quality Control ................. 23
4.8 Finishing Department........................................................................................ 23
4.8.1 Shipment .................................................................................................... 24
4.8.2 Process in Apparel Division of MTM ....................................................... 24
4.9 Quality Assurance Department ......................................................................... 25
4.9.1 Corrective and Preventive Actions: ........................................................... 25
4.10 Forwarding Department .................................................................................... 26
4.10.1 Mode of Transportation: ............................................................................ 26
4.11 Documentations ................................................................................................ 26
4.11.1 Bill of leading ............................................................................................ 26
4.11.2 Air way bill; ............................................................................................... 27

vi

4.11.3 Commercial invoice: .................................................................................. 27
4.12 Finance Department .......................................................................................... 28
4.12.1 Financial Management .............................................................................. 28
4.12.2 Book Keeping ............................................................................................ 29
4.12.3 Pay Roll ..................................................................................................... 29
4.12.4 Function of finance. ................................................................................... 29
4.12.5 Strengths and weaknesses of finance department ...................................... 30
4.12.5.1 Strengths ................................................................................................ 30
4.12.5.2 Weakness ............................................................................................... 30

5 CHAPTER NO 5 ................................................................................................. 31
5.1 Financial Analysis ............................................................................................. 32

6 CHAPTER NO 6 ................................................................................................. 44

7 CHAPTER NO 7 ................................................................................................. 46
7.1 Recommendations ............................................................................................. 47
7.2 Conclusion ........................................................................................................ 47






1










1 CHAPTER NO 1
INTRODUCTION


2

1.1 History
Masood Textile mills were incorporated in 1984 with 4 spinning mills. It is a public
limited company with its registered office at Faisalabad and listed in all stock
exchanges of Pakistan. It is vertically integrated textile unit. It has its own s pinning,
knitting, processing and stitching units. Initially it was engaged only in spinning. But
in 1993 company changed its strategy in adding up most process and disposed off
three spinning units. In 1995 company made its own garments units with only 35
stitching machines but today it has about 1000 stitching machines of different brands.
All credit of this success goes to visionary personality of Mr. Shahid Nazir, the Chief
Executive of the company. Mr. Shahid Nazir believes that by providing products
according its customer satisfaction we can achieve its mission that is .
To be the worlds Best Apparel Company.
so management of mtm worked hard on that point to maintain the status of achieving
customer satisfaction.
1.2 CEO Message
Welcome to the Masood Textile Mills Ltd. It operates throughout the world with over
11,000 employees as part of our team. It produced variety of garments product like T-
shirt, Polo shirt, Jogging suit, Henley shirt, Raglan shirt, Tank top, Bikini, Shorts,
Pants and Sleepwear. It is the hard work of mtm professional staff teams and other
management persons that mtm is growing day by day. Masood has expanded its
operations to include the Internet, and has taken advantage of the variety of
international trade facilitated by the Web. Now Masood uses state-of-the-art
client/server technology for its market information processes to coordinate its network
of global buyers and agents around the world.
1.3 Mission Statement
Our mission is to be a dynamic, profitable and growth oriented company by providing
good return on investment to its shareholders and investors, quality products to its
customers, a secured and friendly environment place of work to its employees and to
project Pakistans image in the international market


3

1.4 Vission Statement
A leading producer of textile products by providing the highest, quality of
products and services to i ts customers
To strive for excellence through commitment, integrity ,honesty and team work .
1.5 Company Introduction
Chairman/Chief Executiv Officer: Mr. Shahid Nazir

Director Ch. Muhammad Amin
Ch. Munir Ahmad
Mr. Fazal Elahi
Mr. Naseer Ahmad Shah
Mr. Muhammad Arshad
Mr. Muammad Nawaz

Director Finance: Mr. Muhammad Farooq
Chief Financial Officer: Mr. Binyamin
Company Secretary: Mr. Abdul Bari Haqqani
Auditors: M/S Ruaz Ahmad Comnpany
Chartered Accountants
Bankers: Habib Bank Limited
United Bank Limited
Mcb Limited
The Bank Of Punjab
Habib Bank A.G. Zurich

Registered Office: Universal House, West
Canal Road,
Farooqabad,Faisalabad

Mills: 32-K.M Sheikupura Road,
Faisalabad.


4










2 CHAPTER NO 2
OBJECTIVES


5

2.1 Corporate Objectives
Maximization of wealth of shareholders.
To increase market share
To achieve customer satisfaction.
Making arrangements towards achieving total quality standards.
To get growth through professional management.
To growth through professional up to minimum level..
To control the atmosphere by installation of lated machinery.
To continue to improve/ surpass past achievement.
To lead the local manufactures.
10.To attain a good word of month and to make company image.
2.2 Quality and ISO 9000 in Masood Textile Mills
Masood has ISO 9002 certification and the registration # 99086699. We have the logo
of three accreditation bodies ANSI RAB USA, UKS UK. MOODY conducted
DAR/TAG Germany and the audits.What is ISO (International Standards
Organization) a worldwide body that prepares and issues the standards?What is
quality? customer satisfaction is called quality.

2.3 How do they Maintain Quality Factors?
Masood has documented a quality manual that states the quality management system
of the organization. Management establishes a documented quality plan setting out the
specific quality practice, resources required and the sequence of activities relevant to
particular product.


6

2.4 Customer Profile
Masood Textile Mills has also proud of work with world best Labels like
JC Penney (Stafford, Arizona, St. Johns Bay)
War Naco (Chaps Ralph Lauren, Calvin Klein)
Indus (Vantage, Champs, Tom Taller)
Vanity fair Lee, Wrangler
Perry Ellis
Levi



7









3 CHAPTER NO 3
MANAGEMENT AND DEPARTMENTAL HIERARCHY
IN MTM APPAREL DIVISION


8

3.1 Management And Departmental Hierarchy In MTM Apparel
Division
MTM is consisting of the following departments;
Merchandising
Production Planning & Control (PPC)
Industrial engineering
production
i. Cutting
ii. Stitching
iii. Finishing
iv. Clipping
v. Packing
vi. Shipment
Quality assurance
Quality control
Human Resource
Information Technology
Procurement
Finance
Forwarding
Stores
Marketing
Transportation
Compliance
Washing






9

3.2 Management Hierarchy in MTM
Top Management chief executive office

General manager

Manager

Middle management
Senior officer deputy manager assistant manager
officer

Lower management
Supervisor

Helper foreman operator













10












4 CHAPTER NO 4
INFRASTRUCTURE



11

4.1 Infrastructures












4.2 Departmentation
Departmentalization is the arrangement of individual job activities into group and
then these groups are combined into large departments and then these are made into
large organization. The Departmentalization in Masood TEXTILE is very clear. These
departments are Human resources marketing finance production export, purchasing,
administration and quality assurance.





12

4.2.1 Human Resource Department
Structure of Hr. Department


Human Resource Manager

Sr. Human Resource Officer

Human Resource Officer

Management Trainee

There are different types of activities that are done in hr department that are as
follows.

Recruitment
Training and Development
Compensation
Performance Appraisals
Employee welfare
Rewards and Punishments
Retiring and Termination Benefits
4.2.1.1 Recruitment:
In hr department recruitment is done through online method till the middle level
management.
Approved strength in each department
Invitation of vacant or new position applications
Scrutinizing of applications.
Test including intelligence and aptitude tests

13

Interviews in panel form
4.2.1.2 Training and Development:
The training and development process in MTM is very strong and has following
setup

A- Indoor Training
Apprentices
Trainee supervisors
Trainee Operators
Trainee Engineers
Management Trainees
Trainee Officers
Trainee business analyst

B- Out Door Training
Training in institutions
Meetings and reviews
4.2.1.3 Compensation
MTM has setup for workers as
Market rate
Overtime
Incentives
Vehicles
Accommodation
4.2.1.4 Rewards and Punishment:
MTM gives in terms of rewards
Appreciation
Cash Prizes
Promotions



14

In MTM for the control purpose there are also punishments
Disciplinary Actions
Show cause notices
Suspension
Terminations
Charge sheets
Fines
4.2.1.5 Performance Appraisals:
Promotions in MTM have very fair methodology. Personality and job related traits
are evaluated at regular basis. Best performance results in good rewards in MTM.
4.2.1.6 Employee welfare:
There are many employee benefits policies being followed in MTM. Some of them
are as follows;
Health insurance
Social Security
EOBI
5% of Profit
Accommodation
Transportation
Canteen and Mess
Leave Encashment
4.2.1.7 Retiring and Termination:
Gratuity and provident fund is being maintained for the retiring personals in MTM.
HR department in MTM is almost computerized and includes
HRMS (Human Resource Management System)
GMS (Gate Management System)
4.2.2 Objectives of hr department
To help the organization to reach its goals.
To increase employees job satisfaction and motivation.
To employ the skills and abilities of the workforce efficiently.

15

To develop and maintain a quality of working.
To communicate and implement HR policies.

4.3 Information Technology Department
Structure of Information Technology Department:-

Electronic Data Processing Manager

Deputy Manager Date Processing Deputy Manager Data Operations Deputy
Manager Web/Email
Assistant Manager Date Processing Assistant Manager Data Operations Assistant
Manager Web/Email
Data Processing Officer Data Operating Officers Web
Developers
4.3.1 Introduction
Information department of Masood textile mills is good. All the work is done on the
computers. Thats why in mtm there is paperless environment. As we all of us know
when computers are used then work is done in less time and should be done
accurately. In mtm wide area network is used due to this they transfer the data from
one mill to the other. In wan specific routers are used that replicate the data and then
send it to the apparel. They also has the ability to update the full system.
The system developed by the IT department includes
HRMS Human Resource Management System
AMS Apparel management system

16

GMS Gate Management System
IMS Inventory management system
FMS Fabric Management System
4.3.2 Objective
MTM Garments Division has very modern fully equipped I.T department. The basic
objective of I.T department is to collect, interpret and summarize the data in an easily
understands able form. Now we discuss I.T at Masood briefly.

4.4 Merchandising Department
Merchandising Manager

Sr. Merchandiser

Merchandiser

Assistant Merchandiser

Management Trainee
4.4.1 Merchandising Performs the Following Functions
Market analysis
Data analysis
Procurement
Visual presentations
Feed back
Product planning
Pricing
Distribution

17



Market analysis includes anticipation of future trends in the market regarding
economic, life style, fashion and competitors. currently MTM anticipates the future
competitors like China and India in result of WTO policies and now successful
competing the china in quality and price.
Analyzing all the available data for improvement and anticipation,
Merchandiser also search about the accessories purchase and to negotiate. Product
planning concerns about sampling and regarding research and development.
The merchandiser starts his work with new inquires, new inquires are the customers
first knock at MTM. The merchandisers increase the sale of products through personal
selling, seminars and physically stall presentation in worldwide cloth fairs and
exhibitions. But currently due to high quality of MTM and customers trust on MTM
quality MTM only relying on personal selling or old customer relations.
When new inquires comes in the merchandising department starts working on it on
the bases of customer demand required in the inquiry. Merchandising deptt. prepares
samples.
4.4.2 Marketing Mix
Product Mix.
Products of Masood Textile Mills are cotton/ synthetic fiber yarn, knitted / dyed
fabrics and garments. MTM exports whole of its products to US, Germany and
various other country. Major portion of yarn are used in manufacturing process and
surplus is exported.
Product Line
Masood Textile Mills produced different high quality export oriented products to the
international market. These are as under.
Yarn
Knitted Fabric
Garments



18

4.4.2.1 Yarn:
Masood Textile Mills Limited produces high quality yarn according to the demand of
the market. 80 to 90% yarn is exported rest of the yarn is used is in Masood Textile
Mills.

4.4.2.2 (Knitted Fabric:
One of the largest Fabric facility in Pakistan having the capability to produce all
kinds of knitted fabrics in 100% cotton & blends.

4.4.2.3 Garments:
Single knit
Single knit

Flat knit Strippers
Single Jersey
Pique
Fleece
Collar & Cuffs
Flat Knit Panels
Feed Striper
Auto Striper
Engineered Striper
Double knit Textures Jacquards
1x1 Rib
Variegated Rib
Interlock
Herring Bones
Pique Jersey
Waffles
Mini Jacquard
Thermals

MTM is a leading apparel company in Pakistan having expertise & machinery capable
of transforming customer ideas into superior quality garments, which are taken as the
most famous brands in the world.
These includes the
Loungewear
Sportswear
Active wear
Sleepwear
Athletic
Physical Distribution:
MTM exports its products through two different marketing channels.

19

Direct Marketing Channels:
MTM directly contact with its customers through mail, telephone, and personal
contacts and sell its products directly to the ultimately buyers.
Indirect Marketing Channels:
When it comes to indirect marketing channel, distribution is made through
intermediaries. MTM exports its products through many agents in some cases.
MTM is using different channels of transportation for the distribution of its products
like, ships, airship etc.
Countries of Export:
MTM is making a good effort to increase the market share. Today company is
exporting its products to many countries like,
USA.
Hong Kong
Japan and so many other.
4.5 Production, Planning and Control (PPC)
Merchandising production

Ppc
PPC
PPC works as a bridge between merchandising and production. It stands Production
planning and Control. In this department the works starts when new inquire
converted into purchasing order. The merchandiser sends to PPC department which
starts work on it.
4.5.1 Functions
Optimization of resources (man, machine, material)
Costing research and development(R&D)
Purchase order receiving
Capacity
Time line (time, action)

20

Fabric accessories (stitching and packing)
Fabric demand plan (lead time)
4.5.2 Accessories Demand Plan
Optimization of resources (man, machine, material)
Costing research and development(R&D)
Purchase order receiving
Capacity
Time line (time, action)
Fabric accessories (stitching and packing)
Fabric demand plan (lead time)
Accessories demand plan
4.5.3 Martial Planning
Martial planning includes,
Fabric planning
Accessories planning

Fabric Planning
Each purchasing order has its own demand about fabric. Each purchasing order has
its own product package. Project package means every purchasing order has a
different (GSM) gram per square meter. there is a slight margin in GSM, which is
allowed by the customer due to shrinkage effect, it is up to 5%. Fabric planning also
includes that what type of cotton requires for producing this fabric.
4.6 Production Department
We believe that prevention is better than cure. During the process of stitching we have
inline inspection and final inspection processes. The garments are 100% inspected by
highly experienced inspectors. Our objective is to produce with Zero Defects.
The BACK TRACKING SYSTEM plays a vital role in developing sense of
responsibility and accountability in every person in making and inspecting the
garments. The same thing is emphasized in ISO-9002, so we are not only the ISO-
9002 Certified holder but also the true executors.

21

Followings are the stepwise operations, which are followed by the production
department
In the first step when a new P>O is going to be produced then production planning
and control department forward a ppc file to the production department.
In second step industrial engineering department calculates the standard allowed
minutes for a particular function such as collar attachments.
After the above two steps production department will design the flow of garment.
Then fabric will cut in the cutting department .
After cutting induction will b moved to the allotted units.
Stitching of the garments will be done in the units.
Clipping is done after stitching .pressing
Final Inspection
Super final Inspection
Packing
Internal audit
External audit
Followings are the stepwise operations, which are followed by the production
department
In the first step when a new P>O is going to be produced then production planning
and control department forward a ppc file to the production department.
In second step industrial engineering department calculates the standard allowed
minutes for a particular function such as collar attachments.
After the above two steps production department will design the flow of garment.
Then fabric will cut in the cutting department .
After cutting induction will be moved to the allotted units.
Stitching of the garments will be done in the units.
Clipping is done after stitching .pressing
Final Inspection
Super final Inspection
Packing
Internal audit
External audit
Ex-factories

22

4.7 Production Department (Stitch To Pack)
The basic objective of stitching department is to stitch the best quality garments in
efficient manner according to the specifications of the customers.
4.7.1 Process Flow Stitching:
Stitching unit takes its lot from induction department and start stitching process. The
workers in this department are on contractual basis. Every stitching unit has a separate
brand for stitch.
Chain flow technique is used in stitching units. Every worker performs a single
function on all pieces and forwards it to next worker for further function. Until the
piece is complete.
After stitching the clipping function is done on the garments. All extra threads are
removed in this function. After it the garments are pressed. Steam is used for this
purpose.
After pressing the garments are forward for audit. In stitching unit following
machines are used for garments making.
Flat Lock Machine.
Over Lock Machine
Lock Stick Machine
2 NCS Machine.
Zig. Zag Machine.
Bar Taking Machine.
B/Sewing Machine
Snap Machine.
Tajima Embroidery Machine.
4.7.2 Packing Process:-
After stitching the garments are forward for packing. Chain flow is used for packing
One person checks the product, other attach stickers, then putting in Polly bags and
than shifting to cartons. Every person who done any operation on the garment take a
barcode slip. And last slip is attached with the garments. This bar code is feed in a
computer program. And can be use for back tracking if necessary. Than these cartons
are shifted to shipment store for further proceedings.

23

4.7.3 Role of Inline Quality Control: -
Inline quality control is strictly applied. Inline inspectors check the stitching,
plucking, pressing, accessories, sizes and packing specification of the garments. If
there is any variation they immediately follow it and try to cover it.
The main responsibility of inline quality control is to ensure quality at every cost.
They have to check every single piece manufactured in the stitching unit. So that each
piece is according to specifications of the customer.
4.7.4 Balance of Responsibilities b/wProduction & Quality Control
The responsibility of production department is to produce every piece according to
specifications of customer and in the given time. While the responsibility of quality
control department is to ensure quality in each piece during production. They work
together for achieving their objectives.
4.8 Finishing Department
Main Finishing Checks:
Stain
Rafu
Re Stitch
In finishing department different activities are performed. This is very important
department because from here the garments are dispatch to shipment. After sewing
the garment goes to clipping department, where extra thread from fabric cuts. After
clipping the garment has checked to find out the stain and spots. the garment which
has stains sends for removing stain to separate table where different chemicals are
using for removing the stains. There is 100% checking of measurement of the garment
by final inspectors, which is also another check on the quality of the garment. Here
some under quality garment are sends to operators for alteration and the garments that
not even alter are rejected. There is a separate sheet for rejected garment. Finishing in
charge randomly checks the garment. Finally the ok garment sends to packing table,
where whole garment is checked 100% before packing. Then garments are packed
into rappers and rappers packed in paper packaging and sends to shipment
department.


24

4.8.1 Shipment
The shipment department has following procedure
Receiving of packs Racking

Information to quality assurance department

Quality assurance audit pink slip if rejected
Green slip if ok
Scans and shipped
The hole can be rejected on the basis of this quality audit
4.8.2 Process in Apparel Division of MTM
Following steps are involved in all processes of apparel division;
PPC merchandiser Communication with customer Proto
Samples Fit Samples Size Samples Pre Production Approvals of
Fabric, Color, Lab Dips Order
Received with Time Line Fabric PO Forwarded to Mills Fabric Arrives from
Mills QC Checking Fabric Received in store Cutting Planning QC and QA
Checking Cutting According to Cutting Plan Bar coding Bundling ticketing
Induction Stitching unit receiving hanging initial operations swing operations
In line Inspection (QC & QA)
stain removing
alteration
q/a inspection
specs
Final Inspection Super
Final Inspection (QC & QA)
Packing and Packaging
shipment department
Racking

25

quality assurance audit
acceptation or rejection
Dispatching to customer one of distinguish quality of Masood, s production
system is This is the department, which can be said as an agent from MTM side,
which checks the required parameters and recommends solution at each level of
process. It has two sections, Grey section, which checks the fabrics for faults.
4.9 Quality Assurance Department
Quality Assurance Manager
Deputy Manager Quality Assurance
Assistant Manager Quality Assurance
Quality Assurance Officer
Quality Assurance Auditors
Management Trainee.
Responsibilities of quality assurance:
There are three responsibilities of quality assurance.
Monitoring the system
evaluating staff involved
assuring quality of product
4.9.1 Corrective and Preventive Actions:
The corrective and preventive actions are very strong in Masood Strong preventive
actions are designed to ensure the quality and avoid any kind of fault.
Preventive Actions:
a) Fabric Audit
b) Cutting Audit

26

c) Measurement Audit
d) Finishing Audit
4.10 Forwarding Department
The forwarding department play very important role for shipment of garment to
various countries with using of many documentation.
They use container to transfer of garments like 20ft, 40ft and 40 ft HC.
They use the following formulas to calculate the CBM.
L * W * H/ 61023 * No. of cotton
For air.
L * W * H/ 366 * No. of cotton
L=length
W=width
H=height
4.10.1 Mode of Transportation:
Road transportation
Rail transportation
Air transportation
Sea transportation
4.11 Documentations
4.11.1 Bill of leading
A document that establishes the terms of a contract between a shipper and
transportation company.
The following heads includes;
Shipper name
Consignee
Notify party
Export reference numbers

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Agents name
Vessel number
Port of discharge
Place of delivery
Final destination
Description of goods
4.11.2 Air way bill;
An air way bill is a documentary proof of the contract of carriage between the shipper
and the carrier.
It includes the following heads
Supplier name
Consignee
Form export number
Notify party
Airport of discharge
Airport of receipt
Airport of loading
Description of goods
Gross /net weight
L.C number
4.11.3 Commercial invoice:
The commercial invoice made by the forwarding department which go to the buyer of
products.
It includes the following heads
Invoice number
Shipper name
Consignee name
Notify party
Agents name
Export registration number
Payments terms

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Discretion of goods
4.12 Finance Department
Finance is art of science of managing money.
Masood textile mills have a joint finance/ accounts department. As the complexity
and size of the organizations, the finance department of MTM totally computerized to
record the transactions, instead of recording manually. The finance department of the
MTM apparel division is connected with the LAN.
The function performed by the finance department is to collect and raise funds with
the varying demands of MTM Funds are created through loans or by issuing share of
the organization.
Structure of Finance Department

Finance Manager

Deputy Manager Accounts Deputy Manager Finance
Assistant Manager Accounts Assistant Manager Finance
Accounts Officer Sales Tax Officer Finance Officer

The main objective of finance department of MTM is to manage finance in such a
way that maximum output is taken by minimum input.
4.12.1 Financial Management
It deals with the cash inflows and outflows major cash inflows are following.
Sales Collection
Interest of Deposits
Sales of Wastes
Capital Gains
Major sources of cash outflow are:-
Purchase of raw materials.
Purchase of packing materials.
Purchase of fuels.

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Wages and Salaries Payments.
Duties and Taxes.
Major Banks of MTM are following.
Habib Bank Ltd
Muslim Commercial Bank Ltd. The company invests its surplus money in
investment banks, stocks and it gives short-term loans to employees.
4.12.2 Book Keeping
MTM has separate accounts division for book keeping. The main function of book
keeping is to record the business transaction in a set of books of accounts.
Daily Payments and receipts entries are recorded in original book of entries.
Subsidiary ledgers are used to maintain debit and credit account.
Main ledger is prepared for daily journal entries and monthly trial balance is
drawn through it. At the end of the year annual accounts have been prepared.
4.12.3 Pay Roll
In this section attendance record is maintained EPS (Employees Payroll System)
prepare the pay according to company rules.
4.12.4 Function of finance.
Preparation of financial statement
Internal control
Conduct of audit
Comparison
Order wise profit and loss account and their analysis
Checking salary
Procurement bills
Purchase bills
GRN
I.T bills
Machine bills
Allowances
Overtime
EOBI

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Gratuity
Marriage and death
Gate pass
Extra payment
4.12.5 Strengths and weaknesses of finance department
4.12.5.1 Strengths
Friendly work environment
Hire Young staff
Use of management system
4.12.5.2 Weakness
Lack of awareness about employee
Misuse of Network
Punctuality
Lack of coordination between employee









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5 CHAPTER NO 5
FINANCIAL ANALYSIS












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5.1 Financial Analysis
The financial analysis of the company presents us the true picture of the company and
its performance regarding the utilization of resources, worth and its profitability.





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6 CHAPTER NO 6
SWOT ANALYSIS











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SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and
weaknesses are internal factors.
STRENGTHS WEAKNESSES
1. ISO 9002 Certification.
2. High quality products.
3. Highly qualified management.
4. Adopting information technology.
5. Loyal customers.
6. Skilled Labor.


1. Increased employee turnover
2. High cost of production.
3. Low production capacity.
4. Non-Corporative culture.
5. Insufficient benefits for the
employees.
6. Communicational gap among
different departments.

OPPORTUNITIES

THREATS

1. Can expand its division such as
entering in weaving sector also.
2. Can capture new market segment.
3. Can reduce the cost by proper
utilization of resources.
4. End of quota restrictions by the end
5. Can hire well-educated and
experienced staff.


1. Entry of new competitors just like
China & India.
2. Buyer need and demand changes.
3. Political instability.
4. Change of government policies.
5. Low price offered by competitor





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7 CHAPTER NO 7
CONCLUSION AND RECOMMENDATIONS




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7.1 Recommendations
There is no doubt MTM is very organized textile mills. Still there is always room for
improvements and following are some measures I suggest for improving the
performance of the company.
Decisions making should be decentralized. Middle and lower level management
should have participation in decision making.
Company should have separate organized marketing department.
Company should introduce products with its own brand name.
Company should capture Middle East markets.
Promotions, increments and other benefits should be performance based in the
company..
The company should build a dispensary for workers in the premises.
Company shouldnt depend upon large customers it should also try to capture
small ones..
Company should try to control wastage of fabric. It reduces cost of production.
Company should try to enhance its customer portfolio by increasing marketing
efforts.
7.2 Conclusion
Masood Textile is a big name in knitted garments. Its working environment is simply
the best in Faisalabad. The company has fully equipped cutting, stitching and packing
units. Its quality assurance system is one of the best in Pakistan. The companys
infrastructure is good. Offices are fully furnished. The company is centrally air-
conditioned. The company is working in Papers less environment. Computerized
bar coding and back tracking system are there. Company has good warehousing
capacity for fabrics and garments. Customer portfolio of the company is very broad.
World leaders in Apparel are working with MTM. Company has no separate
marketing department. CEO and Marketing Manager of the company perform
marketing functions individually.