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MASOOD TEXTILE MILLS LIMITED
HUMAN RESOURCE MANAGER
PREPARED BY: AHSAN MUSHTAQ MUBEEN ARSHAD MUHAMMAD WAQAS AHMAD NAUMAN SALEEM ZAHID LATIF
(GROUP # 5)
THE ISLAMIA UNIVERSITY OF BAHAWALPUR
RAHIM YAR KHAN CAMPUS
It is the age of information & competition. The scientific advancement has made the life more dynamic & competitive worldwide. So one must have practical knowledge and trained enough to live successfully in present competitive situation because it is becoming difficult to survive without creating changes & adapting ourselves according to these changes. The students of MBA receive knowledge during their study, has completely theoretical base. Their ideas remain unsaturated, unless students do not have any practical experience. So to provide the students an extensive exposure of practical business aspects, department of business management sciences arrange a compulsory 6 weeks internship program, for all of its MBA students, in a wellknown organization. This thing enables the young business executives to familiarize with professional business approach. To enhance their writing skill, the students are also required to make the written presentation of their experiences during internship program. Masood Textile Mills Ltd. (Apparel Division) a leading organization in Garment sector was assigned to me for internship. This report is about my experience & knowledge, which I have gained during my internship program. In this report I have made a humble attempt to express most efficiently and effectively what I experienced & observed at Masood Textile Mills (Apparel Division). I think that this report will be really helpful for those who want to know about Masood Textile Mills Limited (Apparel Division) Faisalabad.
First of all we thanks Allah for whom our all praises are for Him. Then we thank our university who send us for internship program with intent to have a great knowledge and experience in Masood Textile Mills Limited. Our most respect for human resource department in Masood Textile Mills Limited who gave us chance to work for best of our skills. We especially thanks to Miss Uzma Meraj, Mr. Naeem, Mr. Tahir coordinator of internship program. We also thanks to all the respective department managers like Mr. Belal……… (HR Dept.) Mr. Kumar………… (QA Dept.)` Mr. Irfan Mr.Tayyab………… (Forwarding Dept.) Mr. Farooq………… (Costing) Mr. Abbas Miss Hina Mr. Zulfqar………… (MRP Dept.) Mr. Irfan……………. (Production Dept.) Mr. Sajjad………….. (PPC Dept.) Now our thanks to Mr. Mahboob A. Shah Director Rahim Yar Khan Campus, Mr. Tariq javed Incharge Internship program and Mam. Nomeeta Zainab Sultan Deputy Director Rahim yar Khan Campus.
And also the effort is dedicated to Human Resource Manager of the Masood Textile Mills (Apparel Division) and all the relevant department Managers who helped us in all the duties which are assigned to us”.Dedication “We dedicate our all efforts to my affectionate. loving and kind parents. Friends whose spiritual inspiration helped us in all the path of lives. Teachers. 4 .
Sr. vision and objectives of organization Organizational structure Working of various Division/ Departments Sales and employees volume Financial analysis SWOT analysis Suggestions and recommendations Conclusion Glossary 5 . # Description 1 2 3 4 5 6 7 8 9 10 11 12 13 Preface Acknowledgements Executive Summary Introduction of Organization Mission.
contribution cannot be questioned Masood Textile Mill feels pride for the achievement of its staff in shape of achieving WRAP and ISO 9002 CERTIFICATION. Fashion garments like Polo. The establishment of MTM in 1984 was in the shape of spinning mill. stitching and finishing Divisions. MTM worldwide renowned customers are Sears. processing. Dockers and Vantage. Eighty-five (85) % of the products are exported to USA and 15 % to Europe. MTM. Yarn. Boxer shorts and Bikinis are produced almost 120. Rugby and Henley shirts along with basic garments like Crew Neck Tee. The latest computerized Barocade system of MTM that assures quality in every operation of production from spinning to packing make it unique . Sweat shirt.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.000 dozens per month. Mr. Textile engineers and Industrial engineers are the others whose . JC Penny. later on in 1994 its activities expanded to worldwide popular garments business. Nautica. In-house embroidery facility is available and equipped .and the only mill in Pakistan with such state of the art technology 6 . Shaid Nazir is the sole proprietor and CEO of MTM. knitting. having state-of-the-art technology have its own spinning. Fabrics and apparels are the famous products of MTM.Executive summary The facts and figures of Masood Textile mill (Garments and Head office) make base of this report.
shortcoming in the process Having in-house Yarn. Knitting.profiting venture For constant exploration of quality products the R & D department is very aggressively performing.vertical mill The turn over of 55.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 . Processing. Fabric dyeing.83 million dollar in year 2004 depict its very .”apparel company 7 . and Laundry and Apparel Manufacturing facilities make MTM a fully . They work hard to achieve TQM in order to full fill their vision statement of “To be the world’s best .
It is a ISO 9002 certified company.Shahid Nazir and Mr. it also having certifications of WRAP (Worldwide Responsible for Apparel Production).sangeet cenima and aizad beverages were established in 1978 and 1983 respectively.Nazir Ahmad .Ch Nazir Ahmad father of Mr. It is located on Sargodha road Faisalabad.INTRODUCTION OF ORGANIZATION MTM(apparel division) is a SBU of Masood group. Quality is the core competency of MTM.After wards dreamland hotel.Zahid Nazir helps his father by the formation of industrial cooperative bank along with the development of Rabia trust hospital.Shahid Nazir. Masood is a 100% export oriented company the major markets of MTM are USA and Euorpe.((Global Quality Recognition 2003 8 .Mr. JC-Penny (Operational Excelence Award 2003) and Russel Corporation .kakakhel Ghee mills and a flying training school were .Kohistan bus service was the first professional step by Ch.founded in 1994 MTM Apparel Division was established by Mr. Shahid Nazir (CEO) in 1995.Masood group was founded by Mr. MTM is one of the largest knitted garment manufacturers of Pakistan.
Japan. converted subsequently into apparel 9 .fabric.000 lbs. The division. of carded and 10. The rest of capacity is used for in house production of . produces a vast range of yarn counts from 10/s to 40/s. Malaysia and Thailand. of combed Ring spun yarn every day (based on 20/s count).Vertical line of Operation :The details of vertical operations of Masood are as follows Spinning Knitting Dyeing. equipped with most modern machinery from Japan. To ensure consistent quality. Processing & Laundry Stitching Embroidery Spinning Spinning Division of Masood Textiles is capable of producing 25. England and Switzerland. spinning laboratory has been equipped with latest and most modern testing equipment.000 lbs. 60% of yarn production is exported to Hong Kong. Korea.
Knitting Knitting Department has 16 machines capable of making Jersey.Yarn MTM Spinning is capable of producing more than 35. UK and Switzerland. MTM yarn is famous for its consistent quality because of stringent QC system and most modern lab equipments. Pique. it has 9 flat bed machines for collar and armband making. 20 to 24 for Interlock and 15 for Rib machines. The gauge ranges from 20 to 28 for single knit. Moreover. Most of the machines are equipped with Lycra attachment. Interlock and Rib in addition to the mini jacquard designs of single knit jersey. Spinning is equipped with state of the art machines from Japan.000 lbs of Combed & Carded ring spun yarn from 6/s to 40/s count. and Fleece. 100% production is inspected and only ‘A’ .grade fabric is transferred to the subsequent operations 10 .
o Single knit Single Jersey Pique Fleece o Flat knit Collar & Cuffs Flat Knit Panels o Strippers Feed Striper Auto Striper Engineered Striper o Double knit 1x1 Rib Variegated Rib Interlock o Textures Herring Bones Pique Jersey 11 .Fabric One of the largest Fabric facility in Pakistan having the capability to produce all kinds of knitted fabrics in 100% cotton & blends.
flexibility in dye lot size ranging from 100 Kgs to 1. Moreover state of the art sueding equipment makes Masood capable of adding value to the delicate knit fabrics. Equipped with these dyeing machines from Germany. o Waffles Jacquards Mini Jacquard Dyeing. A separate testing Laboratory with latest equipment is in place to ensure that the processed fabric quality is maintained to meet the required parameters of our buyers Cutting department Cutting is the first step in production. Now they use Gerber Plotter which is new technology to maximize the use of .000 Kgs The department has three Santex finishing lines from Switzerland including hydro extractors. The main objective or aim of this department is to minimize the wastage of fabric. dryers and compactors for tubular as well as open width fabrics. The machine size selection provides . Here.fabric 12 . Processing & Laundry The Processing Department has an installed capacity of dyeing 140 Tons per week. fabric is cut according to the customer’s specification. it is capable of dyeing both 100 % cotton and Polycotton blended fabrics.
Quality. tells how a shirt is stitch (First moon overlock. which is one of the core competencies of massood. If we see the process flow attached we will find four inspections. at third there is 64% check and at last which . at second there is 62% check. which help in back track system.is inter inspection there is 34% check 13 . That’s why process flow is used for stitching. The copy of process flow. is maintained by 100% check from Inline supervisors. Here they attach the identification codes to the garments. then pocket hem. if there is any fault they try to remove it immediately.. (Stitching (process flow To get maximum production they follow the principle of “Division of Labor” and principle of convenience. which is attached in annexure. then pocket marking and so on). then moon attach. at first inspection there is 100% check. These Inline supervisors check the stitching and plucking.
Garments 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. 14 .
damage and the quality of ironing Finishing Check After ironing finishing check is made. They have to check any possible . This process is of great care because this may damage the fabric.checks a. This includes three kinds of . Raffu .If there is any small hole then that garment is sent for raffu c.then they are washed with steam and chemicals b. Stain If there are any stains on garment and they are removable . This is done with the help of steam irons. Inline supervisors work doesn’t end at stitching. Re Stitch If there is any skip stitch then that garment is sent for Re Stitch 15 .Ironing When stitching is complete these garments are ironed.
.hang tags are attached Packing In this stage garments are packed according to customer’s requirement. Inline supervisors check whether packing is as .per requirement or not 16 . . Packing Accessory Attachment After final check packing accessories like company stickers.
MISSION STATEMENT Our mission is to be a dynamic. a secured and friendly environment place of work to its employees and to project Pakistan’s ”. profitable and growth oriented“ company by providing good return on investment to its shareholders and investors. quality products to its customers.image in the international market 17 .
and of a family of workers. In this respect.its human capital. mTm continues to emphasize the need to invest in and develop its most precious resource .Company Vision "Our vision is of continual improvement and sustained growth.. 18 . mTm continues to provide training courses and selfenhancement opportunities for all our workers". Who are given the best compensation benefits and working conditions in the region.
9. management. To attain a good word of mouth and to make Maximization of wealth of shareholders. 10. 19 . To control the atmosphere by installation of To continue to improve/ surpass past latest machinery. achievement. To reduce the cost of production up to minimum company image stronger in the international market. 6. 3. 8. To achieve customer satisfaction. To increase market share. level. 2. 4. To lead the local manufactures. 7.CORPORATE OBJECTIVES 1. 5. Making arrangements towards achieving total To get growth through professional quality standards..
Pakistan. Ph Fax : : +92 21 5800583 +92 21 5800584 Comments on the Organization Structure: 20 . Near Police Station.Organizational Structure: Main Offices: Head Office Universal house.M. Ph Fax : : +92 41 8787931-34 +92 41 8781361 Lahore Office 16/3A. west canal Road Faisalabad . Ph Fax : : +92 42 5753620 +92 42 5753629 Karachi Office 1-C. 13th Commercial Street. Karachi – Pakistan.Pakistan. Faisalabad – Pakistan. DHA. Main Gulberg . Lahore – Pakistan. Faisalabad . Ph Fax : : +92 41 4689470 +92 41 4689469 Garments Sargodha Road. Phase 2. Sheikhupura Road. Ph Fax : : +92 41 8734910 +92 41 8731180 Mills (Yarn & Fabric Division) 32 K. Eden Homes.
developing and manufacturing of knitted apparel products right from basic to highly fashioned garments thus responding to emerging trends in the industry. Masood Textile strive to lead in creating. Founder of the Masood Group is Ch. They translate conceptual ideas of our customers into reality and shape them through its technical bent and professional acumen. Nazir Ahmad (late). mTm has the technology with expertise. The team here strongly believes that Customer satisfaction is the essence of business today.Masood Textile established in 1994. products the with right knowledge mindset and to most achieve importantly total customer satisfaction. 21 . In 1999 Masood Textile turned from a private company to a public limited company and listed in KSE. MTM was a private organization in start.
DEPARTMENTS/WORKING OF VARIOUS DIVISIONS Human Resource Department The human resource is very strong in Masood. 2. Recruitment Training and Development Compensation & Benefits Motivation Recruitment 22 . Like any other human resource department. the objective of this department is to maximize the efficiency and satisfaction of employees. 4. 3. They adopt al those practices which can help them in achieving their goal Functions of HR Department Functions of the HR department in Masood Textile Mills can :broadly be differentiated into these points 1.
If there work is satisfactory then they are selected HR department also keep the personnel record either the worker is a contractual or permanent worker. A profile of every worker is maintained in the computer based Human Resource Management .The HR department does the recruitment. For recruiting officers they take test and interview. Jobs are normally announced after every six months. The responsibility of this department is to train new employees and to develop a clear career path for the employees. Number one is that Internal Sourcing is done according to the capability and performance of worker. The workers are hired on . External recruitment is done for the officers. Selection is done in two ways. Human Resource Department does Strategic Planning for new jobs in Masood. Recruitment is done basically for two classes. This department also arranges training for 23 . and the succeed ones are appointed as Management Trainees.(System (HRMS Training and Development Although it is the function of Human Resource Department but in Masood they have recently establish a separate Training & Development Department. For recruitment in both classes Job Analysis is done that where new vacancies can be arranged or where there occurs a vacancy for a job and what kind of qualified person is required for the job.trial. Class S is for labors and supervisory level while class M is for Management. After a period of three months they are again evaluated the persons who qualified become the permanent members of Masood’s Team.
employees who are promoted to next level. gratuity. bonus. HR department checks pay and other legal benefits and benefits like overtime. They . subsidized mess and vehicles . After providing complete training the work of this department doesn’t end.take feed back to evaluate the results of training Compensation and Benefits The HR department carries out wage surveys.are also under HR department 24 . leave encashment.
For creating motivation and competitive environment among the :workers certain incentives are given Cash prizes . PPC staff.Motivation and Performance Appraisal HR department makes the performance appraisal and is responsible of giving increments or rewards to the workers.35% is distributed among all the personnel.g respective . To create a competition between workers a trophy is given to the best stitching hall on the criteria selected by the management. O.O. is given to the best stitching hall. Cutting persons etc 25 .1 2. every month. belonging to different departments. Trophy The best inline inspector receives a cash prize.merchandiser. This 0.35% of the P. for their contribution e.
5.department House Keeping To arrange the facility of accommodation for the employees is also done by the administration department.Administration Department :The activities performed by this department include 1. Control of the admin. They are required to submit the reports of all goods going out of the factory or which are .received. office Gate office Transport House keeping Utilities Security Gate office This office is required to Gate office works under the administration department. The admin manager sings gate passes Transport To control the facility of transport and maintenance of the transport of the transport vehicles is controlled by the admin . The wear and tear 26 . 3. 2. 6. 4.
of the factory building is also taken care by the admin department .e. Other responsibilities are like the civil kind i. . electricity. Utilitie The utilities such as kitchen budget. The security is in the control of the security in charge who works under the admin manager. and carpenter for the repair of the furniture Security Masood has a tight security system. maintenance of automobiles and the machines is also done by the administration department. There is an efficient security crew working in the Masood Textile Mills.sanitary. boiler. 27 . Security people check every employee coming in and going out of the factory for safety reasons .
Proto/pattern development.works in the following manner Receive development sheet from production planning and control Pricing from concerned department. 28 .Merchandising department Marketing manager who directly report to the general manager control the marketing department. This department plans for future market and maintain strategies for existing markets. The merchandising department . Fabric development Lab dips development Salesman sample if required Size set in original fabric & color Pre production approval Imported accessories follow up Complete follow up & monitoring of purchase order start from yarn department. This department remains always in struggle for attracting new customers. The major responsibility of this department is to access the customer’s needs and wants and set the products according to the customer’s satisfaction. to shipment. Development of new inquires. Products distribution and promotion are also the part of this department.
Delights the customers by solving their problems. The marketing department with the help of merchandising department makes it possible that the order place by the customers .foreign markets to search their new customers .Marketing Manager performs the following activities Look overall problems of the departments and the Devises all the marketing related policies. The marketing manager with the Chief Executive officer performed the marketing activities jointly.should be completed within specified time .MTM sell the product with the brand name of the customers 29 . Checks and observes all the activities of textile problems faced by the customers. .Because it is the heart & soul of the organizations MTM cannot ignore the pivotal importance of this department.Marketing Strategies of MTM Marketing Department cannot be ignored in any organization. sectors especially keeping focus on the competitors activities. Co-ordinates with the merchandising department. They not only promote their department but also visit the .
Masood is one of the few fully vertical textile mills in Pakistan having inhouse yarn.Competitive Strategy Back track system Masood textile mill is the only mill in Pakistan with latest computerized barcode system that assures quality in every operation of production from spinning to packing. Products of each department carry bar code stickers. knitting. fabric dyeing. one can trace back the root of the problem and enable to prevent occurrence of the same in future . which bear all the details and history of the operations of that product. processing.demand 30 . Vertically integrated operations Besides. Hence if any problem is reported. laundry and apparel manufacturing facilities. The vertically integrated operations help Masood in achieving shorter lead time and greater flexibility to cater the customer’s .
com www.cklien.com 31 .www. while rest 15% to Europe .dockers.com GAP www.speedo.hanes.polo.com tailor.tom.nautica.com www.jcpenny.gap.Customer profile Masood is proud to work with world’s best labels.com JC penny www.com Tomy Hilfger www. Champion Chaps Calvin Klein Dockers www.levis.russellcorp.com Vantage www.championusa.vantageapparel. 85% of production is exported to the U.com Tom Tailor www.com Speedo www.polo.com Nautica www. Currently.com www.L www.tomy.com Russell www.com Hanes www. This exposure to the brand labels has been a continuous learning experience for the entire team.polo.com Polo Polo R.S.com Levi’s www.
jockey.com www. Rugby and Henley shirts along with basic garments like Crew Neck Tee. Textile engineers and industrial engineers.WRAP certified and ISO 9002 certified as well Aggressive R&D facility A very aggressive and creative R&D department is always busy in exploring innovative product development enabling Masood to be ahead of many in the .com www.Masood has in-house embroidery facility equipped with Tajima machines Experienced professional management The Masood team comprises a balanced blend of experienced professionals including over 200 MBA’s. .com www.sears.Sears Jockey Guess Foot Locker www. Sweat shirt.field 32 .com Stitching diversity With over 2700 stitching machines. Masood is . Boxer shorts and Bikinis.guess.footlocker. Masood is producing about 10 lacks pieces per month of fashion garments like Polo.
a part of accounts department not the finance department . and Accounts Officer (Head Office) for the submission to .FINANCE DEPARTMENT IN MTM In my opinion there is a stock and inventory controlling department at Mills division of MTM.In the knitting section following reports are prepared Date Wise Yarn Receiving Detail - 33 .(the Textile Commissioner (Bureau of Statistics.This department has three sections Spinning Knitting Dyeing - :Spinning :Following reports are prepared in the spinning section Daily Cotton Stock Report Daily Yarn Stock Report Daily Management Report - This report is reported to the Finance Manager (Head Office and Mills). Accounts Manager (Head Office). Lahore :Knitting . which is named as finance department or I can say that it is only .
These documents sent to Head Office and they clear the bills means payment of these bills.Besides.department saves these documents by using some oracle program 34 . the reports prepared are as followed Party wise receiving summary Party wise issuance summary Party wise production summary Party wise issuance summary - . above mentioned reports following documents are also maintained Vouchers - Bill for Daily Expenses Payment to Employees Collection and Deposit of Cash from Head Office :Some documents used in Finance Department :(Goods inspection Report/Receipts notes (GRN Issued for purchased items by purchasing department.Date Wise Yarn Returned from Outside Date Wise Yarn Returned to Outside Date Wise Yarn Issuance Detail :Dyeing - - Date Wise Grey Fabric Received from Party :In the dyeing section. Store .
83% of total salary is contributed for social security. of hours= Over time pay 596.Payment of over time is given to employees by using following formula Net salary / 26 / 8 * No. Benefit for employees. In MTM 8. Over time .:Application form for Leave Encashment Total leaves Annual leaves Sick leaves Casual leaves 32 14 08 10 Calculation of leave encashment Total salary / 30 * No. Rs.15=31 * 8 / 26 / 4000 Total working days in a month =26 Total working hours in a day =08 35 .20 is deducted from employee’s salary and balance is provided by the owner. of leaves spare= Amount payable Social security contribution of employees Some portion of total salary separated for social security contribution.
Contribution Employee’s contribution (Employer’s contribution Rs.66 Basic Pay Gusted day =2666. of guzted days Net payable 923= 3 * 24 * 8 / 26/ 2666.66 Final settlement Salary + Benefits – Deductions = Net Payable Final clearance form .Employee must be cleared from the following departments • • • • • • • Head of department Main store Office mess / canteen Security Administration Human resource Information technology 36 .66 =03 Basic pay / 26 / 8 * 24 * No.20 balance (remaining Guzted day’s amount . of Guzted days Net pay = 4000 Basic pay =Net pay * 2 / 3 Basic pay =4000 * 2 / 3=2666.Basic pay / 26 / 8 * 24 No.
It includes the quantity and its . CNG and maintenance are attached with summary. This form includes quantity. rate. Whether they have company’s provided conveyance or personal.price per unit .the following entry Store-code A/c Sales tax A/c Packages club A/c Narration: being store purchased bill received and adjusted Transactions • • Daily Fortnight 37 . Bills issued by petrol pumps.shape of cheques . then these bills checked by account officer etc. limit of maintenance charges etc.Petrol and maintenance allowances are given to different persons according to their designation. description. serial no. limit of petrol. terms of payment etc Bill It is Issue by the selling company (packages club).No. vehicle no. then send to head office they also checked it and send amount to MTM Apparel in the .Following limits provided Purchase order It is Prepare by purchase departments. from cashier specific persons get their allowances . total amount issue date and delivery requirement date. of units * price per unit = total amount including sales tax Journal voucher When we purchases on credit then journal voucher is necessary and we make . Then checked the date.
AC etc. some computer accessories When the invoices are more than fifty thousand then for the purpose of refund we make payment within 180 days. :Entry at the time of purchases Expense/store –code A/c Sales tax A/c To party A/c 38 . Payment evidence is necessary for tax refund. E. .issue against purchase return Credit note-------.Cement.G tyres.Payment evidence includes cheques and challan number of tax Debit note -------.ordinance 2001 .issue against sale return • • • In case of 15% excess booked in purchases will be refunded after In case of work in process things we can claim 15% GST. petrol.• • One month One year Types of vouchers Cash voucher 1 • • • • • • Cash payments voucher Cash receipts voucher Bank payments voucher Bank receipts voucher Sales voucher Purchase voucher Bank voucher 2 Journal voucher 3 Parties exempted from deduction of withholding tax u/s 153(5) of income tax . purchases. In case of end user cannot claim 15% GST.
Excess amount of input tax carried forward from the preceding tax period.:Entry at the time of sale Party A/c To sales A/c To sales tax A/c :After 15 days when we return file (Sales tax A/c (out put (Less: sales tax (in put refundable sales tax = :Entry Sales tax refundable A/c To in put/out put tax :When tax department rejected some tax then entry Rejected sales tax A/c To refund receivable A/c :When sales tax refunded Bank A/c To refund receivable A/c . N.T. 3. if any 39 . Sales tax registration number. Name Tax period. 5.Sales tax return form includes 1.N. 2. 4.
Net amount payable including arrears additional tax and penalties. To fulfill an order. and freight charges etc. Freight charges mean who will bear the charges buyer or seller and what its effect on price per unit. Negotiations on price. the order consist of minimum quantity means only to check that the product is according to the sample. yarn dye. 7. If a firm has national tax . when the price settled the buyer place the order. 9. 10. dye. color.managers to check the requirement • • • • • Arrange yarn Knitting Dyeing Drying Cutting 40 . If the samples are up to the mark then they give sample order (trial order) to the company. Buyer check the quality. shrinkage. weight in grams. (excluding column #05) FORWERDING DEPARTTMENT EXPORT Process Firm must be registered in export promotion bearue. 8. Penalty for late filing. Unclaimed input tax from immediate three preceding tax period Sales Purchases Arrears/additional tax/recoveries pointed out by audit.number then that specific firm can export its products without registration Then company prepares its product’s samples and shows to different buyers who want to purchase it. reactive dye. size.6. the meeting held between . 11.
L/C at sight 41 . Insurance and Freight (CIF) . Freight on board (FOB) Freight charges from Faisalabad to Karachi are bear by factory other . Carriage and Freight (C & F) From factory to buyer’s destination port charges born by the selle 3. Carriage.in case of air port Bill of lading ----------in case of sea port Term of shipment 1.• • • • • • Stitching Labeling Pressing Packing Packing list Shipment Prepare document.charges bear by the buyer 2. Custom officers check .payment will be made From factory to buyer’s destination port charges born by the seller Payments at sight means when documents received by buyer then Letter of Credit (L/C) types 1.including insurance expenses 4. Cash against documents (CAD) .these documents for clearance Air way bill ----------. one copy send to Air port or sea port.
. By Sea.made to buyer 2. Narcotics certificate (if shipment by Air) 2. Types of documents 1. 3. Trans shipment. • • • • Original commercial invoice (6 copies) Original packing list (6 copies) Form “E”. 5.necessary for exporting products to Gulf countries 42 . 3.When seller submits documents into the bank then payment will be . 60 days from shipment date. Issued by Chamber of Commerce for Gulf countries. . •Bill of lading / Air way bill. 90 days from shipment date. By Air. it is . Buyer’s requirements. • Commercial invoice. 2.Payment will be made after 30 days of submission of documents . Custom clearance documents. 4.Payment will be made after 60 days of submission of documents Payment will be made after 90 days of submission of documents Mode of shipment 1. Payment will be made after 120 days of submission of documents 30 days from shipment date. •Certificate of origin. 120 days from shipment date. •Packing list.
. For the finished goods or completion of goods we used . then buyer check it and send back to seller by mail. Used for Panama. It is used for European countries.This certificate is used only for export in Canada •Canadian custom invoice.imported material from different countries •Annexure iii. •General system of preference (GSP).•Single country declaration. 43 .purpose in the buyer’s countries Container sizes • • • 20 feet (standard) 40 feet 40 feet high cube. . and then he approved it.product was made only in Pakistan •Multiple countries declaration. It is used for custom clearance in the buyer’s .country •Quality control report. It is used for custom .Buyer’s agent checks the quality and other documents etc •Inspection certificate. These documents send to chamber of commerce for stamping and again send to buyer by mail. We give guarantee to buyer that the material used in this . we send the Air way bill / shipment bill by mail to buyer.
(PPC (production planning & control PPC is the bridge between merchandising and production department. and Material Production Merchandising PPC :Functions of PPC Optimization of resources (man. This department works on the basis of 3M’s . action) Fabric accessories (stitching and packing) Fabric demand plan (lead time) Accessories demand plan 44 . Its responsibilities start from the negotiation between merchandiser and customer and ends on the shipment of PO. machine.((Man. PPC department plays an indispensable role in a garment manufacturing company. Machine. material) Costing research and development(R&D) Purchase order receiving Capacity Time line (time.
unit order will be process.It is responsible for accurate costing of production.as follows (Fabric Cost (Yarn Dying and Knitting :1 Stitching Cost :2 Packing and Accessory Cost :3 Overhead Financial Charges :4 Margin and Rejection :5 Freight on Board :6 :Production Allocation PPC fulfill this responsibility by making a schedule. merchandiser negotiates with the customer. given by PPC.-:Costing This is the most important responsibilities of PPC department .On the basis of cost. and so on 45 . which deals it when and from where fabric is received. when cutting is done to which production . The price of the single accessory can’t be ignored . This is crucial point in getting the purchase order (PO) the main things that are taken into account during costing and pricing of product are .
Following points are included in this .profile Purchase Order :1 Buyer Name :2 Description :3 Quality :4 Color and size Breakdown :5 Time Line :6 Size Chart and cutting Design :7 Packing Program :8 Accessory Sheet :9 Fabric Order Confirmation Sheets :10 Action Calendar :11 46 .:PPC Profile A PPC profile is prepared which contains all the specifications that has been demanded by customer and distributed to all the concerned departments in which whole execution of order is done.
Each and every employee is conscious about Quality and they all work as a team to maintain it. Observations: As practical work is done in units so we observed a lot of implementations of our subjects. Here what we like most is the TQM implementation. Quality is the core competency of Masood textile mills that differentiates Masood from its competitors. The main tasks of production department are Quality maintenance and on time delivery. Orders of different companies are processed in different units according to their skills.Production Department: There are total 12 stitching units. They operate under the objective of “Zero Defect”. Here quality control is merged with the production. Process: Production process Is as follows: 1:Stitching (Process flow) 2:Ironing 3:Finishing checks 4:Packing accessory attachment 5:Packing 47 .
Finishing Checks: 1: Stain 2: Rafu 3: Re Stitch Packing Accessory Attachment: After final check packing accessories like companying stickers. These inline supervisors check the stitching and plucking and faults is removed immediately. That’s why process flow is used for stitching .They have to check any possible damage and the quality of ironing.This is done with the help of steam irons. then pocket Ironing: After completion of stitching the garment is ironed. 48 . which help in back track system. This process is of great care because this may damage the fabric . hanging tags are attached. Quality which is the core competency of Masood textile mills is maintained by inline supervisors.then pocket hem.The process flow which we saw for a making and hem and so on). specific garment tells how a garment is stitched (first moon over lock. Here they attach the identification codes to the garments. Inline supervisors work doesn’t end at stitching .Stitching (Process Flow) To get maximum production they follow the principle of “Division of Labor” and principle of convenience. then moon attach .
chain flow. The method of final inspection is clockwise. bundles) Sewing (inline inspection for quality control) Clipping Pressing Final inspection Super Final inspection Packing Internal audit External audit X factory In line inspection most of the faults are ruffo. Process Observations: Cutting (machine arrange. :Types of machines (1) Lock stitch (L/S) Single Needle needles 2 (2)Over lock (O/L) Threads 4 Threads 3 49 . stain and alteration. Finishing Supervisors check whether packing is as per requirement or not.Packing: In this stage garment is packed according to customer’s requirement. man power) Induction (barcodes. puckering. SAM. Same inspection is performed in final and super final inspection.
collar attach. shoulder attach. side went. cuff attach :Main parts of machines :Gauge set Pressure footNeedle platfeed dogsNeedle bar:Thread tension post . half moon attach :thread O/L 4 Neck rib. cuff thoka.(3)Flat lock (F/L) Minicylender Cylinder bed Flat bed Feed of arm Auto trimmer Feedo flat lock 4 needle Zigzag (4) (Button attach (B/A (5) (Button holes (B/H (6) Bar take (7) :Operations of some Machines :Single needle L/S Placket making.it is used for losing and tighten the thread 50 .
Feedo (4 (Mitsubishi (L/S (5 (Taking (Feedo (6 (Toyota (O/L (7 (Kansai (F/L 4 Needle (8 Flow Of A Polo Shirt: machines (1) (2) (3) (4) (5) (6) Half Moon cutting Main label Moon attach 2 NEEDLE Shoulder attach Shoulder attach top stitch Placket A L/S O/L F/L L/S O/L L/S 51 . O/L (3 (Juki (L/S. O/L (1 (Pegasus (F/L. B/H. B/A. O/L (2 ((Siruba (L/S.:Stitch dial .Increase or decrease the stitches :Brands (Yamato (F/L. B/H.
(7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) :Specs Collar attach Collar top stich Neck B Cuff cutting Cuff attach Cuff top stitch Sleeve attach Sleeve top stitch Body hem Side seam Side vent (check) Kaj Button attach Bar take Inter inspection Clipping pressing Final inspection Super final inspection Collar thoka O/L L/S L/S O/L O/L F/L O/L F/L F/L O/L L/S L/S of garments straight shoulder across shoulder sleeve opening sleeve inseam sleeve length sleeve length from HPS sleeve hem height upper arm/bicep across chest 52 (1) (2) (3) (4) (5) (6) (7) (8) (9) .
(10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) (31) (32) (33) (34) :Garment :Tops (1) (2) chest side seam bottom neck back drop arm hole straight arm hole curve neck front drop sleeve length from CBN shoulder slope waist collar bad width placket opening placket length waist band width side seam excluding waist band side seam including waist band leg opening leg hem height fly opening crotch seam full seam front rise back rise Thai hip types Crew neck Polo 53 .
XXL).(3) (4) (5) (6) (7) (8) (9) High neck(10) Mock neck(11) V-neck(12) V-insert(13) Sleeve less(14) Rugby Hood Qzp Full zipper Raglan Tank top Henley Bottoms: (1) Pant (2) Short (3) Boxer brief (4) Boxer short Accessories. 54 . XL. which are used: Labels: The following labels are used during preparing any garments a) Main label: These labels mostly show company brand name. M. L. b) Size label: It shows size of the garment whether it is (S.
c) Care label (side label): In this label the instructions are mentioned like washing. it is mostly attached on the back side of the pent or trouser. Type of tapes: a) Feedo tape: It is making with body fabric and cutting in unit and attached with feedo machine. b) Twill tape: It is specially knitted tape. d) Fire label: The purpose of this label is don’t go near fire because fabric Has polestar. It is seamed on all sides. e) Patch label (company promotion label):This label shows the company name. Other accessories: Draw cord Fusing Types of threads: a) Cotton thread 55 .
b) Diner c) Intermingle Buttons: a) Straight b) Cross Needles: PARTS OF NEEDLE ARE (1) Shank (2) Needle Tip Hole (3) Needle Eye (4) Scarf (Cut) (5) Taper (6) Needle Blade (7) Groove 56 .
In production department there are inline inspectors for inspection on the spot and now Masood has hired an expert Quality Assurance team from Sri Lanka they are responsible for assuring the Quality measures of each Garment. Here fabric is checked for shrinkage. Internal and External Audits are one of the most important checks . Quality control: Implementation of process to achieve the required standard. yarn.QUALITY ASSURANCE. Quality assurance: Preventive measures taken to make defect free product. fabric. to maintain the quality. 57 . The next check point is in production department. fabric is first checked and when find per customers requirement then it is issued to cutting department. (1) Monitoring the system (2) evaluating staff involved (3) assuring quality of product Working: Quality is the major concern. there are quality checks at every stage of manufacturing starting from raw cotton. Quality: It is a standard achieved by process to render defect free product. cutting stitching and end at packing.Internal auditors are from Masood’s end and external auditors from buyers end. In apparel division. finished g/cm2 etc. processing. Responsibilities of quality assurance: There are three responsibilities of quality assurance.Then next check point is in quality pieces move to the stitching units.
Strong preventive actions are designed to ensure the quality and avoid any kind of faut. 1: Preventive Actions: a) Fabric Audit b) Cutting Audit c) Inline Audit d) Measurement Audit e) Finishing Audit f) Final Good Audit Corrective Actions: a) Warnings b) Demotions c) Dismissals 58 .Corrective and Preventive Actions: The corrective and preventive actions are very strong in Masood.But if any thing goes wrong then relevant person immediately take corrective action.
CLOSE LOOP CORRECTIVE ACTION (CLCA): Inspection Solution (preventive measure) Identifying the defect Root cause of defect 59 .
:Sale & employees volume 60 .
Because a GAAP are basics to know that the company financial reports are fair and giving right information to its users.The companies financial statements are Balance sheet Profit & loss account Cash flow statement Owner equity statement We firstly calculate the vertical and horizontal analysis to know the .companies past and current trend 61 .FINANCIAL ANALYSIS We are analyzing the company’s current position to assess that the company is how much efficient. In the auditors report the auditors opinion shows THE COMPANY HAVE BEEN DRAWN UP INCONFIRMITY WITH “ ”|COMPANIES ORDINANCE 1984 . We start our analysis from the auditor’s report to know that is the company following the generally accepted accounting principles. We calculate vertical & horizontal analysis and then to different ratios to assess our findings and then compare it with industry’s past data.
Short Term Liquidity Position
Short term debt paying ability is Important to all users of financial statements. If the entity can not maintain a short term debt paying ability it will not be able to maintain a long term debt paying ability nor it will be able to satisfy its stock holders. Profit ability of the firm does not determine the short term debt paying ability. In other words using accrual accounting, the entity may report high .profits but may not have the ability to pay its current bills
The account R/A Turnover indicates the liquidity of the R/A, means that how .many tines our R/A is converted into cash in a year
A/R Turnover = Avg. Gross R/A
In 2006 account receivable turnover ratio is 3.4624 which shows the decreasing trend and in this way our sales rapidly decreases and concludes that liquidity .position weakened
To know that the company is how much is efficient to pay its short and long term obligations. It is necessary to calculate the liquidity of the firm as when analizing the short term debt paying ability of the firm. We find a close relationship between the current and the current liabilities. Generally the current .liabilities will be paid with cash
For many years the gridline for the minimum current ratio has been 2. As the company’s current ratio is declining in 2006 due to increase in current liabilities with 67
So. The usual guideline for the quick ratio is “1” a comparison should be made with firm past acid .Interpretation .Quick ratio The asset test ratio relates the most liquid assets to current liabilities.a current ratio 2 and indicates an incline in liquidity of the firm .compare to 2005. we conclude that company are so much successful in staying above .The efficient quick ratio “1” company meets this standard 68 .test ratios and with major competitors Quick Ratio . Inventory is removed from current assets when computing the acid test/ quick ratio.
Creditor’s also attracted . increased profits can cause a rise in market price.483% which shows that our net Profit decrease with compared to 2005 that concludes the profitability of the .towards profit because it is a source of debt coverage Net Profit Ratio Interpretation Net Profit Ratio in 2006 decrease to 2.creditors and investors :Profitability Ratio Stockholders derive revenue in from of dividend. leading to capital gain.As the company quick ratio is declining leads to more bankruptcies and great risk for .company decline which shows the bad image to the creditors 69 . Further. Profitability is the ability of the company to generate earnings dividends are pay out of profit/ earnings.
Return on Equity Capital Return on Total Equity measures the return to both common and preferred shareholders. It means once one dollar invested by the shareholder earns how much net income.556% which shows that investors invest 1 rupee in the company and gets profit of 40.past data. This shows the profitability increases 70 . In this ratio equity means both common shareholders and preferred shareholders :Interpretation In 2006 return equity is 40.556% which is an increasing trend with compared to the .
:Return on Assets Return on Assets measures the ability of firm to utilize its assets to create profit by comparing profits with the assets.91% in 2002 .866% which is 4. How efficiently the company yses its assets and .which is a great decline and shows the low profitability ratio 71 .earn from them :Interpretation Due to capacity company assets shows low return which is not suitable for company as we shows that in 2006 its goes to 1.
One share of common stock ears how much dollar of income in a year is the interpretation of Basic Earnings per Common share :Interpretation An increasing trend looks in 2006 regarding earning per share its means a share holder invest 1 rupee and earned 4.and increasing the investor position in the company 72 .Earning Per Share The amount of income earned on a share of common stock during an accounting period is the earning per common share.06% it when compared with 2002 shows Decreasing trend but an increasing trend looks when 2004 and 2005.
SWOT ANALYSIS Managers of MTM always review the mission and goals and then they scan the internal and external environment to identify elements that influence the organization performance. The buyer can purchase same product from the competitor at low price but due to strong .The company has high financial resources The company has strong market image in foreign market.marker image they purchase from MTM 73 .(Weakness (W) Opportunities (O) Threats (T Strengths Latest machinery The mill has latest machinery.standards ISO 9002 Certificate The company has got ISO 9002 certificate which insure the quality High Financial Resources Strong market image . which they have imported from foreign country to meet the international quality standards . To determine such elements SWOT analysis is .conducted SWOT is a method that helps managers identify the organizational strengths (S) .
wages offered by the company Less promotional activities 74 . All type of decisions is made at top level. such as material labor quota charges . delegation of power only managers have no . They .The MTM has small market share at international level No motivated staff The staff is not properly motivated due to lake of incentives and less . All management is very competent.know how to satisfy their customers Products innovation abilities . Proven management MTM has proven management.The management has product innovation abilities Weaknesses Centralized management The management at MTM is centralized.and other production accessories Small international market share . Due to centralized.authority to make decision High cost of production The cost of production increased.
media Opportunities Potential in market Entering new markets Addition new product line Faster market growth Potential in market Threats Political instability in country Economic instability Though competition Adverse government policies Easy access of buyers in world markets 75 .The company has very less promotional activities in local an international .
Highly Qualified Management.Textile The overall acceptable environment but needs to be Decentralization of authority. Lack of authorities in the hands of Managers. Pakistan. Well defined and systematic recruitment criteria.:Conclusion & Recommendation for Improvement -:Conclusion Following conclusion is based on my learning during the stay period of Masood . Masood has one of the best Oracle data base & I. most probably number 1 in PAKISTAN and number 3rd in ASIA. Masood is one of the best apparel producer in improved. Good image in the international market.T System 76 . Good reputation of product in the mind of customer.
77 . Employees should be encouraged to come up with Proper training at each level should be given to the Special incentives should be given to the good Need to improve fabric to induction process to avoid The biggest problem of this time is needed to improve revolutionary thoughts. normally incurred to meet the huge level of business volume. For this purpose a revolutionary commitment from higher management is required at this time. proper execution of customer purchase orders. employees for motivation and encouragement. teamwork. employees.-:Recommendation Masood should try to reduce per minute & per unit Masood should try to reduce the financial cost that Need to develop a culture of cooperation and cost too meet the buyer’s requirement regarding low prices. For the purpose of improvement in this sector the line management should be trained and must be educated how to behave the workforce. otherwise mtm may not be able to cash the benefits of quota elimination. The misbehavior of some responsible managers with the working force is creating unrest and feelings of being treated like slaves among the workers. air shipments.
division consumption of accessories. excess reduce per unit cost. unabsorption of fixed overhead. excess cutting. high rejection. Glossary GSM P. Need to improve utilization of available capacity to Need to improve cost of white elephant of apparel i.e. air freight. overtime etc.O SPI PPK WRAP CBL CBN Wales Cordses CPO CPI Splices PPC GGT R&I Scarf GRN IGP OGP FID IE Gram Per Square Meter Purchase Order Stitch Per Inch Product Package World Wide Responsible Apparel Process Central Back Length Central Back neck vertical Lines horizontal lines Cutting Planning Officer Cut Panel Inspection A separator between the fabric plies which are cut Production Planning and control Garments Gerber Technology Receive and Issue cut Goods Received Now Interword Gate Pass Outword gate Pass Fabric Inspection Department Industrial Engineering 78 Lead Time Order to Shipment Time .