Company Growth & Future Challenges

Developed By: Training & Development

Company Growth
Shahkam Industries (Pvt.) Ltd. one of Pakistan's leading knitwear exporter, is a
composite knitwear unit comprising of knitting, fabric and yarn dyeing,
cutting, stitching and packing facilities.

Objective:
Growth is never by mere chance; it is
the result of forces working to-gather

Vision
To be in the top ranking among all
Textile Industries

Planning
for
growth

Managing
Money

Getting
Customer

Building
Team

Sewing Trend---Machines VS. Output

3000

Sewing Machines 2012~2015

2651

2500
2000

2270
1887

1500
1000
500
0
Year 2013

16,000,000

Year 2014

Year 2015

Stitched Output 2012~2015

13,464,988

14,000,000
12,000,000

10,165,583

10,000,000
8,000,000
6,000,000

5,388,246

4,000,000
2,000,000
0
Year 2013

Year 2014

Year 2015

Knitting Trend---Machines VS. Output

Knitting Machines 2012~2015

100
90
80
70
60
50
40
30
20
10
0

89

89

Year 2014

Year 2015

73

48

Year 2012

9,000,000

Year 2013

Knitting Output 2012~2015

8,000,000
7,000,000
6,000,000

7285372

7772445

7225948

5798615

5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Year 2012

Year 2013

Year 2014

Year 2015

Yarn Dyeing Trend---Machines VS.

Output
29.2

Yarn Dyeing M/Cs 2012~2015

29

29

28.8
28.6
28.4
28.2

28

28

28

Year 2012

Year 2013

Year 2014

28
27.8
27.6
27.4

2,500,000
2,000,000

Year 2015

Yarn Dyeing Output 2012~2015

2,265,638

2,017,314

2,229,869
1,728,783

1,500,000
1,000,000
500,000
0
Year 2012

Year 2013

Year 2014

Year 2015

Fabric Dyeing Trend---Machines VS. Output(Kgs)

Fabric Dyeing M/cs 2012~2015

18
16
14
12
10
8
6
4
2
0

14000

16

Year 2012

Year 2013

Year 2014

Year 2015

Fabric Dyeing Output 2012~2015

12000

12000

12000

Year 2014

Year 2015

10000
8000
6000

7000
5000

4000
2000
0
Year 2012

Year 2013

Export Trend2012~2015(Us$)
80,000,000

Annual Export in US $--2012~2015

66,053,263

70,000,000
60,000,000
50,000,000

60,121,999

50,017,669

40,000,000
30,000,000
20,000,000
10,000,000
Year 2012

1,200,000

75,287,993
Year
2014

Year 2015

Annual Export in Dozens--2012~2015

1,000,000
800,000

Year 2013

908,990

884,823

701,246

600,000
400,000
200,000
0
Year 2012

Year 2013

1,108,975
Year
2014

Year 2015

Total Employees2012~2015
Total Employees
2012~2015

8000

6949

7000

6038

6000

5421

5000

4103
4000
3000
2000
1000
0

Year 2012

Year 2013

Year 2014

Year 2015

Strength Trend--2012~2015
Strength of Permanent Employees 2012~2015

3,461

4,000
3,500
3,000
2,500

2,157

2,376

2,515

Year 2013

Year 2014

2,000
1,500
1,000
500
0

Year 2012

Gross Salary of Permanent Employees

2012~2015
60000000
70000000Gross

64,903,001

43,951,433

50000000
40000000
30000000

Year 2015

26,550,238

32,720,921

20000000
10000000
0

Year 2012

Year 2013

Year 2014

Year 2015

Strength Trend--2012~2015
Strength of Contractual Employees 2012~2015

3500
3000

2,562

2500

2,867

2,650

1,843

2000
1500
1000
500
0

Year 2012

600,000,000

Year 2013

Year 2015

Gross Pay of Contractual Employees 2012~2015

489,483,646

500,000,000

407,393,789

406,644,244

400,000,000
300,000,000

Year 2014

275,895,946

200,000,000
100,000,000
0

Year 2012

Year 2013

Year 2014

Year 2015

Month wise average of payments-2012~2015

300,000,000

Month wise average of

payments--2012~2015

256,520,327

250,000,000
200,000,000
150,000,000

128,635,420

100,000,000
50,000,000
-

77,592,829
50,292,079

Year 2012

Year 2013

Year 2014

Year 2015

Month wise average of overtime-2012~2015

Avg. Overtime of Permanent &
Daily Wages 2012~2015
50,000,000
45,000,000
40,000,000

45,218,860

36,335,986

35,000,000
30,000,000

29,561,480

26,524,124

25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0

Year 2012

Year 2013

Year 2014

Year 2015

Annual Transportation Expense2012~2015

Transportation Expense (RS)--2012~2015
45,000,000

39,857,079

40,000,000

35,599,180

35,000,000
30,000,000

38,104,905

28,886,313

25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-

Year 2012

Year 2013

Year 2014

Year 2015

Month-Wise Avg. Expense Comparison--Transportation

Month wise avg. Expense of Transportation---2012~2015
350,000
286,240

300,000
250,000
200,000

199,821

211,406

221,885

Year 2012

Year 2013

Year 2014

150,000
100,000
50,000
0

Year 2015

Company Growth2012~2015

Generator
Transformer
Replaced Chillers
Boilers

Knitting Machines
Dyeing Machines
Sewing Machines
Clipping Machines

Training School
Quality Lab
Ware House
Yarn Store

SHK
System
Improvement

Electrical
Improvement

Knitting Halls
Garment Dyeing Hall
B-lines & equipment

New Departments

Computerized
Attendance
Barcode System
More Production
Units

More production units~2015

New Hall for Flat Knitting Machines

Garment Dyeing Unit
( Dip dyeing, Cool Dyeing, Burn out dyeing)
B-Lines

Induction of New Departments

Ware
House
Induction of new
Departments
YARN Store

Quality Lab

Installation of more machines~2015

50 more Flat Knitting Machines

Cropping Machines Installed in 2014
50 more dyeing machines
220 more sewing machines

Electrical Improvement
Installation of:
02 generator
02 Transformer
Replacement of chillers
Boiler

Improvement in System
Computerized Attendance

New Washrooms/Chillers &

Drinking Water Tanks

Installation of New Boiler

Workers
Benefits

In-Time
Salary

Subsidized
Mess
EOBI/Family
Insurances

Free
Transportation
Provident
Fund
Annual
Increments/Bonus
on gross pay

Double
Overtime on
gross pay

Benefits on Gross Pay

Free Transportation ,In Time Salary ,Free

Transportation & Annual Increments & Bonuses

Comparisons
Process Rates ---JCP POLO

The difference in rates are 53% as comparable with

other factories.
Detailed comparison is attached in next slide for
better review.

Process Rate Comparisons

Shahkam Vs. Masood

Minimum wage according to 2014 labor

law is Implemented.

Transportation is free
Annual increments are granted
Bonus is given twice a year
In-time salary is given
Overtime is paid double & on gross pay
No quarterly performance reward

system.

Process Rates are more.

No accommodation is provided

Minimum wage according to 2014

labor law is not Implemented10,700

Fare (Rs 1000) is deducted,

transportation is not free

Increments are not granted annually

Bonus is not given.

Salary is given with delay of 20-25

days
Overtime is paid single & on basic pay
Quarterly performance reward
system is there.
Process rates are less
Accommodation is provided

Suggestions for future challenges

Chain Cutters & Wipers on Stitching Machines to
reduce number of threads
Installation of Auto Placket Section
Skill Level Allocation
Capability Calculation to diagnose Off-Standard Time
& Target Oriented Over Time
Use Gerber Technology ( Auto Cutters & Auto
Spreaders)

Chain Cutters & Wipers on Stitching Machines

The thread of Sleeve
Hem can be minimized
by using Chain Cutter
& Wiper

The thread of Neck

Attach can be
minimized by using
Chain cutter

The thread of Bottom

Hem can be minimized
by using Wiper+Thread
Trimmers

Results by Using Chain Cutter & Wipers

Crux:

Current Strength VS. Suggested Strength

Clipping Strength

Salary per clipper

13000

T0tal Cost

78000

Clipping Strength

Salary per clipper

13000

T0tal Cost

39000

Saving per month: 39000 Rupees

Saving per Year: 468000 Rupees

As by using Chain Cutters & Wipers the thread reduces from 04 points
that will in return can reduce the strength & can increase per person
targets .
If 1500 Pcs are clipped by one female then we need only 03 females for
4500 Pcs of Crew.

Installation of Auto Placket Section

It will

Increase production
Saves time
Reduces Man Power
Shorten the Stitching
Flow---A step towards lean
production.
Improves Quality level
Reduces Placket Center
Out Issues
Yearly Cost Saving
Video is separately
attached for review.

Saving & Pay back Calculation for Auto-Placket

Saving & Pay back Calculation for

Auto-Placket
Crux:

The above mentioned study showing the 5,00,000 will

be invested more at initial level.
But if the variable cost is compared it shows the
difference of 90,000 per month.
It will Take 1.5 year to complete the Capital
Investment.
Once it will be completed, company will save 11,00,000
Yearly

Use Gerber Technology

It includes :
Auto Spreaders & Auto
Spreaders
They will save the time
Reduces Man Power
Improves Efficiency

Skill Level Allocation

In Stitching skill
level should be
allocated to have
the data bank
regarding new
orders execution.

Capability Calculation
The time study should be
strengthen to have an overview of capability.
It will
Ease the assigning of targets
Can diagnose off-standard
time
Overtime will be target
oriented
Line Balancing will be
improved
Help to minimize WIP

Detailed Summary
Available:
Strength----15
Target------4500
Avg. Capacity=400 Pcs
Avg. Output=400*12=4800 Pcs

Suggested:
Strength---13
Capacity---6430Pcs
Shift timing---480 mins

Study of Clipping SS POLO