Internship report

On

　

　

　

　

　

　

　

　

SUBMITTED TO

Samar Kamal Fazli.

Assistant Professor.

　

　

SUBMITTED BY

Muhammad Jamil BHATTI.

CIIT/Spo5-MBA-062/LHR.

　

Submission date

August 28, 2006

COMSATS institute of information technology, JINNAH Campus,

Defence Road off Raiwind Road, Lahore

Ph No. 5321090, 9203101 Ext. 215

　

　

The internee

Muhammad Jamil Bhatti

Acknowledgements

　

　

　

　

All the praises are for the almighty, Allah who bestowed me with the ability and potential to complete this Internship. I also pay my gratitude to the Almighty for enabling me to complete this Internship Report within due course of time.

Words are very few to express enormous humble obligations to my affectionate Parents for their prayers and strong determination to enabling me to achieve this job.

I take this opportunity to record my deep sense of gratitude and appreciation to my Internship Advisor Mr. Samar Kamal Fazli, Department of Management

Sciences, COMSATS Institute of Information Technology Lahore for his constant encouragement and inspiring guidance with his Wisdom.

I also appreciate the cordial co-operation from all my concern Managers in the different departments of Nishat Mills Ltd especially Capt. M Nasir (CSO) Mr. Asif Javaid GM Spinning Mr. Abdur Rehman, DSM Spinning Unit#3, Mr. Nadeem Ashraf Marketing Executive and Admin & HR management for providing me requisite information and knowledge for compilation of my complete Internship.

　

Dedication

　

　

　

　

　

　　

　

I dedicate this to my Beloved Parents for all their love & attention which has made it possible for me to make it up to this point and as well as the Internship Advisor Mr. Samar Kamal Fazli, who bestowed me with the courage, the commitment and the awareness to follow the best possible route, by his unmatchable style and by best possible training.

　

Table of Contents

The internee   2

Acknowledgements   3

Dedication   4

Table of Contents   5

Executive Summary   6

Vision   7

Mission   8

Quality Policy   9

Textile Vision 2006   10

Introduction   11

IMPORTS textile machinery   12

EXPORTS of Textile   13

Nishat Group   15

The Company   18

Business operations   23

MARKETING STRATEGY   46

Marketing process   50

SWOT Analysis   51

Detail of SWOT Analysis   52

PEST Analysis   55

Learning as internee   57

Conclusion   58

Recommendations   59

Annexure   60

　

Executive Summary

　

Nishat has grown from a cotton export house into the premier business group of Pakistan with 5 listed companies, concentrating on 4 core businesses; Textiles, Cement, Banking and Power Generation. Today, Nishat is considered to be at par with multinationals operating locally in terms of its quality products and management skills.

I recently have done my internship in Nishat Mills Limited, in which I got training from each of its department. The internship basically revolved around the product knowledge training. The system, the style of working & the commitment of the employees in NML is really exemplary.

The difference between the success & failure is doing things right and doing things nearly right, & NML has always tried for success & that is why it is known to be one of the leading organizations in Pakistan. Irrespective of all these positive points of Nishat Mills Limited, I have noticed a few areas where the improvement can really increase the efficiency of NML.

In this report I have given a very brief review of what I have seen during our internship I have mentioned all these as I have made an internship as according to the schedule. I also mentioned about the Textile industry in Pakistan and vision of its industry. Then I have done a detailed SWOT analysis as well as PEST Analysis.

Then I have discussed about my learning in the whole internship that is all about the Textile Terminologies and process of the productions. I have made it possible to write each and every thing that I have learnt there. I have all my practical efforts in the form of this manuscript that’s the asset for my future career.

　

Vision

　

　

　

　

　

　

　

　

To transform the company into a modern and dynamic yarn, cloth and processed cloth and finished product manufacturing company with highly professionals and fully

equipped to play a meaningful role on sustain able basis in the economy of Pakistan.

To transform the company into a modern and dynamic power generating company with highly professionals and fully equipped to play a meaningful role on sustainable basis

in the economy of Pakistan.

Mission

　

　

　

　

　

　

　

　

　

　

To provide quality products to customers and explore new markets to promote/expand sales of the company through good governance and foster a sound and dynamic team,

so as to achieve optimum prices of products of the company for sustainable and equitable growth and prosperity of the company.

Quality Policy

　

　

　

　

　

　

　

We work together as a team for implementation and continual improvement of total quality system in order to achieve satisfaction of our internal and external customers.

Textile Vision 2006

An open market driven, innovative & dynamic Textile Sector which is:-

Internationally Integrated.

Globally Competitive

Fully equipped to exploit the opportunities created by the MFA Phase out and this enables Pakistan to be amongst the Top Five Textile Exporting Countries not only in Asia all over the world with the tremendous Textile companies

Low Road Scenario represented a situation where only the historic export growth rates in textile sub-sectors were maintained. The overall average export growth for the textile sector after analysis was finalized at 6% per annum.

Do-Able Scenario envisaged increase in unit price realization of yarn, fabric, textile made-ups and garments with an attempt to maintain the market share in each individual market. It also suggested penetration in the non-quota markets along with increased

share of synthetic and blended yarns, fabrics and garments. The overall export growth in this scenario was estimated at 12% per annum.

High Road Scenario the most ambitious of the scenarios that not only adopted the apparel sector as the engine of textile export growth but also recommended diversification in products that hold greatest potential but unfortunately have been neglected e.g. woven garments, sports wear, specialized industrial garments, and women wear. Besides broadening of export product portfolio with extra push in synthetic and man-made fibers, fabrics and garments,

　

　

　

　

Introduction

The Textile Industry:

Over the years, Pakistan is said to be the single crop economy i.e. cotton and textile that claims the lion's share in terms of the contribution in the national economy of Pakistan.

Despite efforts to bring in diversification in country's overall economic get-up the textile sector continues to be the most important segment of the national economy. Its share in the economy, in terms of GDP, exports, employment, foreign exchange earnings, investment and revenue generation altogether placed the textile industry as the single largest determinant of the economic growth of the country.

Despite harsh and hard international economic conditions, Pakistan's textile industry has weathered the storm by coming out of the international crisis in a very positive manner.

During the year exports were controlled from falling and significant investment was made in value-added expansion and in Balancing-Modernization- Replacement (BMR).

Besides fall out of the events of September 11, the implementation of WTO's agreement, various bilateral agreements have been signed and implemented.

As a result global scenario has changed. Government and the corporate textile sector adjusted their policies to achieve maximum benefits of free trade. So, local structure of the corporate culture, investment pattern and fiscal and monetary policies were significantly changed.

IMPORTS textile machinery

Import of textile machinery and equipment has picked up since 1997-98 when a bumper cotton crop was harvested and the Textile Industry reaped massive profits due to lower input cost. In the last five years more than Rs9 billion have been invested for the import of spinning machinery. Nishat is one of the major customers in terms of importing Textile Machinery from almost all developed countries.

It is expected that an additional Rs10 billion would be required for Balancing, Modernization and Replacement (BMR) in the spinning sector during the next three years for producing superior quality yarn besides several units are in various stages of installation in Karachi also.

These facilities would improve value-addition in fabrics, besides increasing the volume of fabrics and quality garments exports from the country.

Textile is the only sector where investment has been substantial and regular during past three years. The most encouraging factor of this investment is diversity.

The entrepreneurs, who earlier concentrated on Spinning and Weaving, have now established compact units adding state-of-the-art finishing units and knitting machines to add value to their products. The latest addition to this is the setting up of denim cloth producing units.

At present, the export competitiveness of the textile industry can be improved by aggressive marketing techniques and quality improvements which have to be taken care of micro-level that is each textile unit should make its own independent efforts to sell its products in different international markets.

All the individual textile units should implement the ISO 9001 program for quality standard and ISO 14000 for environmental standards to counter the threat of globalization.

EXPORTS of Textile

Despite sluggish trends in the international markets, exports of textile manufactures increased from $5.75 billion in 2000-2001 to $5.8 billion in 2001-02. The encouraging

factor was the increase in the exports of value-added items. The share of value-added products in total textile exports from Pakistan this year was 57.13 per cent as compared to 54 per cent last year.

Cotton cloth export also increased to $1.13 billion during this period as compared to $1.03 billion in 2000-01, indicating an increase of 9.7 per cent. The exports of bed-wear fetched $918 million against $745 million; showing growth of 23 per cent, while towels exports increased by 12 per cent to $270 million against 242 million.

Readymade Garments improved by 7 per cent to $882 million from$827 million, whereas Made-up articles increased by 6 per cent to $351 million as compared to $331 million.

The exports of five sub-groups i.e. Cotton Yarn, knitwear, Tents, Canvas/Tarpaulin, Art, Silk/Synthetic Textile and other manufactures declined during the period. Cotton yarn, which earned $1.1 billion during 2000-2001, earned $ $911 million.

The textile quota exports to the United States, European Union, Canada and Turkey grew by over 18 per cent with nominal increase in value during the first seven months of the calendar year 2002 compared to the same period last year.

The highest amount of increase of 55 per cent in quota exports followed by US 29 per cent and EU 12 per cent. Exports to Canada declined by 21 per cent in quantity.

In terms of value, exports grew by 30 per cent to Turkey and 13 per cent to the EU. Exports declined in case of Canada by 29 per cent and 9 per for the US. The total exports to the US were 420 million square meters worth $481 million; European Union imported 1058-million square meter worth $509 million. Canada imported 16 million square meters worth $18 million and Turkey, 101 million square meters worth $28 million.

The average unit price of Pakistan's textile quota exports dropped considerably i.e. 30 per cent in case of US, 9.6 per cent for the EU and 16 per cent in case of Turkey. The only increase 0.21 per cent was recorded in average unit price of exports to EU. The WTO agreement provides for making textile trade completely free from 2005.

The textile export figures for the first ten months of the current year released by the Export Promotion Bureau revealed that the textile quota exports to the US improved by 24 per cent while the increase in exports to EU countries at the end of October 2002 registered an increase of 16.6 per cent in terms of value and 13 per cent in terms of quantity.

CHALLENGE:

To get maximum benefit from quota free regime, all out efforts are needed to boost textile exports and increase access to the international markets. To boost the exports, the State Bank of Pakistan has introduced three facilitating schemes for the exporters namely, Foreign Currency Export Financing Scheme (FCEFS), Political Risk Guarantee Scheme (PRGS) and the Export Guarantee Scheme (EGS). The bank would provide 210 days credit facility to exporters for South America as compared to 120 days credit facility to other markets.

Nishat Group

*The Nishat Group* Mian Muhammad Mansha Yaha is the captain of this splendid ship having    around 30 companies on board. Mansha, who owns the Muslim Commercial Bank as well, is now setting up a billion rupee ($ 17 m) paper sack project too. He is one of the richest Pakistanis around. Nishat Group was country's 15th richest family in 1970, 6th in 1990 and Number 1 in 1997. Mansha is on the board of nearly 50 companies. Chinioti by clan, Mansha is married to Yousaf Saigol's daughter.

He is deemed to have made investments in many bourses, currency and metal exchanges both within and outside Pakistan. He has had his share of luck on many occasions in life and has recently been awarded Pakistan's highest civil award by President Musharraf. He could have bought the United Bank too, but then who doesn't have adversaries. Nishat Group of comprises of textiles, cement, leasing, insurance and management companies. If Mansha was bitten by Bhutto's nationalization stint of 1970, his friends think he was compensated by Nawaz Sharif's denationalization programme to a very good effect. There is no stopping Mansha and he is still on the move!

The history of Nishat Group dates back to 1951, when Mian Muhammad Yahya founded Nishat Mills Limited.

This man of vision, courage and integrity, Mian Mohammad Yahya was born in 1918 in Chiniot. In 1947 when he was running leather business in Calcutta, he witnessed by the momentous changes that swept the Indo-Pak subcontinent.

This is story of success through sheer hard work and an undaunted spirit of enterprise. Beginning with a cotton export house, he soon branched out in to ginning, cotton and jute textiles, chemicals and insurance. He was elected Chairman of all Pakistan Textile Mills Association. He died in 1969, at the age of 51 having achieved so much in so short time.

After almost half a century of undaunted success, Nishat group is among the leading business houses of the country and ranks among the top 5 groups in terms of assets and sales revenue. The group has its roots firmly planted into four core business namely

Textiles

Power Generation

Banking

Cement

TEXTILES

The textile business is further subdivided into 2-textile division:

Nishat Faislabad

Nishat Chunian

The textile capacity of the group is the largest in the country. An addition of 20,000 new spindles, 100 new air jet looms and new dyeing plants has increased the existing capacity of 242,000 spindles, 740 looms and dyeing and finishing capacity of 5 million meters. The largest exporters of textile products from Pakistan, for more then decade!

POWER GENERATION

Nishat group has also been a pioneer in power generation in the private sector of the country. Nishat setup the first power generation unit in the private sector in 1995.

CEMENT

In 1992, Nishat Group acquired D.G Khan Cement Company Limited (DGKCC) from the second largest project of the group and is ideally located in the heart of the country, with easy access to transportation all over Pakistan. DGKCC unit No. 1 has a capacity of 2,200 tons per day. A new unit heaving the capacity of 3,300 tons was setup in 1997.

International Finance Corporation and common Wealth Development Corporation have financed this unit. With the addition of unit No.2, DGKCC has become the largest manufacturer of cement in Pakistan.

BANK

In 1991, Nishat Group ventured into the financial sector through the acquisition of Muslim commercial Bank. MCB has grown ever since and is now the largest bank in the private sector. MCB has a network of over 1200 branches employing over 12,000 people.

　

The Company

Nishat Mills Limited is a public Limited Company incorporated in Pakistan under the Companies Act, 1913(Now Companies Ordinance, 1984) and listed on Stock Exchanges in Pakistan

Nishat Mills

Nishat Mills Limited (“Nishat”) is a public company incorporated in Pakistan and listed on all three Pakistani stock exchanges. Nishat is engaged in textile manufacturing.

Which involves spinning, combing, weaving, bleaching, dyeing, and printing, stitching, buying, and selling of textiles? They deal with yarn, linen, cloth and other goods including fabrics made from raw cotton, synthetic fiber and cloth.

The Company is engaged in the business of textile manufacturing and of spinning, combing, weaving, bleaching, dyeing printing, stitching, buying, selling and otherwise dealing in yarn, linen, cloth and other goods and fabrics made from raw cotton, synthetic fiber and cloth, and to generate, accumulate, distribute and supply electricity.

Company is providing quality products to its customers within the Pakistan and outside the Pakistan. Presently company is exporting its all kinds if apparel products.

　　

　

Major competitors

Nishat competitors are

Crescent

Chenab

Arzoo

Alkarms

Sitara

Kohinoor

Amtex

But main competitors of Nishat Mill are

“Crescent Textile Mills”

“Chenab Textile”

　

　

　

company profile:

　

CHIEF EXECUTIVE:

Mrs. Naz Mansha

BOARD OF DIRECTORS:

Mrs. Naz Mansha

Mian Raza Mansha

Mian Hassan Mansha

Mr. Muhammad Nawaz Tishna (NIT)

Mr. Faisal Ehsan Ellahi

Mr. Khalid Qadeer Qureshi (Chief FinancialOfficer)

Mr. Muhammad Azam

Mr. Rana Muhammad Mushtaq

FINANCE DEPARTMENT:

Mr.Shehzad Malik (G.M)

Mr.Usman Bajwa

Mr.Badar Rauf

Mr.Ashraf Ali Raza

Mr.Inam

Mr.Mudassar

Mr.Asad Iqbal

Mr.Masood Akhtar

Mr.Nawaz

Mr.Zulufiqar

AUDIT COMMITTEE:

Mr.waseem ul Haque Osmani Chairman

Mian Hussan Mansha Member

Mr. Aftab Ahmed Khan Member

HEAD OF INTERNAL AUDIT:

Mr.Khalid Kabeer

CORPORATE DEPARTMENT:

Mr. Muhammad Azam

Mr.Khalid Mahmood Chohan

AUDITORS:

Riaz Ahmed & Company

Chartered Accountants

LEGAL ADVISOR:

Mr. M. Aurangzeb Khan, Advocate,

Chamber No. 6, District Court,

Faisalabad.

BANKERS TO THE COMPANY:

ABN AMRO Bank

Allied Bank of Pakistan Limited

American Express Bank Limited

Askari Commercial Bank Limited

Credit AgricoCitibank N.A

Deutsche Bank

Faysal Bank Limited

Habib Bank Limited

Habib Bank A.G. Zurich

Mashreq Bank P.S.C

Meezan Bank Limited

National Bank of Pakistan

Standard Chartered Bank Grindlays

The Hong Kong & Shangai

Banking Corporation Limited

Union Bank Limited

United Bank Limited

　

Business operations

　

Spinning Department:

Nishat Textile Limited has seven spinning units situated in Faisalabad. These units are equipped with the latest machines in all of their departments. In the spinning units the fiber is converted into yarn, and as this the quality of yarn is very important in the textile sector so spinning units have a lot of importance.

Spinning

Weaving

Grey Room

PROCESSING

Singeing

Desizing

Scouring

Bleaching

Printing

Dyeing

Finishing

Folding

　

　

　

　

　

　

　

　

　

　

　

　

　

　

　

　

　

　

Generally the spinning mills mechanism is very similar. It starts from the mixing department where the bales of cotton are mixed and at that section the most visible impurities are taken out. This mixed cotton is then taken to the blow room by a machine. After going through a process it is taken to the card room for the next process.

After the card room the route is taken by keeping in view that whether carded yarn is the end product or the combed yarn. The combed yarn is of better quality and its process is a bit bigger than the other one.

For the carded portion the drawing breakers & drawing finishers are used to prepare the fiber to a certain level so that the process on the simplex machine can be carried out. On the other hand, in the combed portion, after the drawing breaker the cotton goes through the lab former, & after that it goes through the combing machine, where the comer noil and comber sliver are separated.

The comber sliver, after passing through the PC drawing & Drawing finisher goes to the simplex machine. The product that comes from the simplex machine is then taken to the Ring section where the yarn is to be made. Finally after passing through the auto cone the yarn comes in the packing department. In NML the process of Ultra Violet Checking is also practiced to ensure the quality of the yarn.

As this process is very important so there are some common parameters on which the quality of yarn is judged. These parameters have been listed as below:

Important Parameters of Yarn & Fiber:

Important Parameters of the Fiber:

Length

Strength

Micronaire value

Color grade

Neps / gram

Trash percentage

Important Parameters of Yarn:

Yarn count

Strength LCSP

U percentage

Thin Places

Thick Places

Neps

IPI (Imperfection)

Yarn Elongation (Flexibility)

Single Yarn Strength

TPI

Twist Multiplier

　

Weaving Department:

Very similar to the spinning units, the weaving units of NML are really very well equipped with the latest machinery to make the best possible product for the customer to gain the customer satisfaction.

Most of the machines in the weaving unit of NML are of new technology & NML has a very good check on the quality of fabric produced by its Quality Control department.

The end product of the spinning unit is the starting point of the weaving unit. When the cones of the yarn are brought to weaving unit, it is then taken to the warping zone in which the beams are prepared.

These beams are then taken to the sizing section where the different chemicals are applied to the yarn so that the weaving of the fabric can be done with the

minimum breakage of yarn. After sizing the process of drawing inn is applied so that the yarn could be converted into fabric.

After the drawing inn the beams of the yarn is then taken to the Sulzer Looms so that the yarn is converted into the weaved product. When the greige is made, then it is taken to the inspection department, where a lot of quality check is done. At the first step the fabric is classified into two types, i.e. A grade & D grade.

The D grade fabric is either used in the B grade sale or in gathering of the fresh pieces. While the process of A grade fabric is a bit longer.

The A grade fabric after mending, goes to the checking machines, from where it is taken to the rechecking machines. After rechecking either the greige is rolled or folded & packed according to requirements of the buyer.

During all the above process, quality is the main purpose of the NML people. The weaving units of NML check the product quality as under:

　

NML (Four Weaving Units) BHIKHI

NML has one of the largest weaving setups in Bhikhi, near Sheikhupura. This Unit is equipped with the later Air Jet looms. The variety level of the product is very good.

In the warping section NML Bhikhi has 5 Benninger Machines which are of Switzerland origin. In the sizing section the NML Bhikhi has 5 machines. As far as the looms are concerned, NML Bhikhi has 389 looms for preparing the greige. Out of these 389 machines 96 are Sulzer Ruti of Switzerland, while other machines are the latest Air Jet machines of Japan origin.

The Bhikhi unit of NML is specially very well known for its product in all over the country.

Quality Control Department:

First of all the people of NML checks the quality of yarn before taking it into the process. Following are the yarn characteristics that are checked before taking it into the process:

Count Testing

Strength Testing

TPI

Hairiness Testing

Thick & Thin bases

At the warping section the following characteristic is checked:

Breakage Report

When the sizing process is applied, the following two tests are applied:

Abrasion Test

Strength Test

After completion of the greige the g/sm test is applied so that to have the best customized product. Finally in the folding section checks are applied at every step of the folding process. The weaving units of NML are known to be the best producers of greige product in Pakistan.

QUALITY CONTROL LAB:

During the production, quality control lab ensures that every work has done according to the standards of NML. Following checks are made at different departments:

Checks while Printing:

Rubbing

Washing

Dry Cleaning

Chlorine Test

Checks after Curing:

Rubbing

Washing

Checks after Stenter Process:

Light Fastness

Shrinkage

Rubbing

Washing (Optional)

Pilling

Checks after Raising:

Quality check

The purpose of all these checks is to ensure the Quality of the end product.

QUALITY CONTROL LAB MACHINES:

Crock Meter:

Pilling Machine:

Garment Washing Machine:

Dura Wash:

Wascator Machine

Thumble Dryer

Light Box

Auto Wash

Curing Machine

Pader

Light Fastner Tester

Air Permea-meter

Data Color

Visco Meter

The above are the machine which is used in the Quality Control Lab to ensure the quality at every step.

　

Processing Department:

Processing Unit of every textile mill has a paramount importance because it actually provide the finish fabric product which is either sent to customer either as a piece good or as made up after converting the fabric into the required stitched product. The processing unit of NML comprises of the following department:

Bleaching Department

Finishing Department

Printing Department

Dyeing Department

Folding Department

Quality Control Lab

Digital Design Studio & Engraving Department

Sample Room

Production & Planning Department

The operations of Production & Planning Department are to work as a bridge between the marketing team and the processing people, so this department has the prime importance.

All of the communication which is held between the processing & the export people is done through this department. The finishing department is also very important because it is the center of operations held in the processing unit.

A brief overview on the Processing capacity of NML has been discussed as follow:

Bleaching Department:

The bleaching department of NML is equipped with the latest machinery to compete with the market. Bleaching department has the following machines:

Singeing & De-sizing:

L-Box:

Mercerizing:

Emerizing:

Jiger:

Water Mangle:

The above are the machines & a very brief overview of the machines. The bleaching department is like a back bone of the processing unit. After weaving mill, the fabric is brought to the bleaching department where it is prepared on the above machines so as to be prepared for the Printing or Dyeing.

The Quality Control people ensure the Quality of work in the Bleaching to fulfill the collective goal.

Printing Department:

The Printing department of Nishat Mills Limited comprises of three rotaries, i.e. Reggianni, Zimmer & Stork. Along with theses three rotaries, the printing department has three sampling tables to fulfill the sample need of the customers of NML.

There is a mini sampling machine for the sampling section to facilitate their work. The specification & general points about these rotaries are as under:

Reggianni Machine:

Zimmer Machine:

Stork Machine:

The Printing department of NML is working at its best & producing really good stuff. After the printing from the rotaries, the route of the fabric depends on the dye class.

If the reactive dyes have been used, then the fabric will be taken to first of all Ager Machine & then Goller Soaper Washing, then to Stenter finish & finally to the calendar.

On the other hand the fabric treated with pigment dye is taken to the curing machine & from there it is taken to the calendar after the required stenter finish. Now in the following line, we’ll see the specifications of the Curing & Ager Machines:

Curing Machine:

Ager & Curing Machine:

Dyeing Department:

The dyeing department is a major department of NML processing. This includes three machines. These machines have been identified & discussed as below:

Pad Thermosol:

Pad Steam:

Goller Soaper Washing:

So above is a bird’s eye view on the dyeing department of NML.

Finishing Department:

Finishing department of any textile mill has a very significant importance because it acts like a hub in the Processing. Almost every fabric which goes through processing unit, it has to be passed through the finishing department.

The finishing department of NML Processing unit is famous for its quality work. It comprises of many latest machines which includes Stenters, Cylinders, Raising Machines & Sanforizing Machine.

Types of Finishes:

There are two major types of finishes:

Chemical Finishes

Mechanical Finishes

The finishes in which no chemical is used is called the mechanical finish, a very good example of mechanical finish is Calender Finish. On the other hand the finishes through stenter are known to be the chemical finish. The finishes are of the following types:

Normal Soft

Super Soft

Chintz

Anti Pilling

Anti Wrinkle

Water Proof

Easy Care

Soil Repellent

Sanforizing Machine:

The Sanforizing machine is used for relaxing the shrinkage of warp. The machine possessed by NML has a workable width of 114”. It is basically used either on customer demand or in case of Garments. The standard is 5%. NML has one Sanforizing machine in its processing unit.

Raising Machine:

This basically means to raise the fibers from the surface of the fabric. The machine possessed by the finishing department of NML has a workable width of 114”. NML has one raising machine in its processing unit.

Calender:

NML has 2 Cylinders. The basic purpose of calendaring is to have the shine & to have better hand feel. These Cylinders are of two different lengths, the workable width of the Cylinders is 100” & 111” respectively.

The above is a brief introduction of the Finishing department of NML.

Folding Department:

The folding department of the NML has a daily production of 1,00,000m. The folding department is the last department of the Processing Unit. After the folding unit the fabric is transferred to GSC.

The folding department has two kinds of machines; the kind is rolling machine while the other kind is of folding machines. It depends on the requirement that which kind of machine would be used.

In the folding department of NML latest 4 score method is used for the inspection purposes. Quality checks are made at every step of processing unit.

　

Engraving Department:

The Engraving Department of Nishat Textile Mills Limited is equipped with the latest machinery along with the manual machinery for the process of exposing.

In the Engraving Department of NML, the screens are generally prepared which are then used in the printing process.

Sizes of the Screens:

Following are the three repeats of screens which are used in the Engraving Department:

640mm

820mm

914mm

Similarly the widths of the screens are of the following five kinds:

3030mm

2650mm

1850mm

1620mm

1280mm

The fifth width is currently not in the use of Engraving department and that are not in used in NML now. The first four kinds are basically in use in the NML.

The selection of the screens depends on the design requirement of the print. The most important thing which should be kept in mind is that only one screen should be used for one color that means the number of screens will be equal to the number of colors which will be used during the printing process.

　

Process:

1. Coating Stage:

The first step which is taken in the formation of the screens is to coat the screen with SCR 100. This coating is done for the purpose of blocking the meshes of the screen so that the required king of design can be made through the screen. The coating of the screen takes almost 8-9 minutes.

2. Heating Stage:

These screens are then heated in the ovens so that to carry out the process in the best possible manner. When the screens are heated in the proper way then they are taken to the exposing machines. The heat is provided to the screens so that to fix the SCR 100 so that the exposing stage should be started.

3. Exposing Stage:

Nishat Textile Mills Limited has two exposing machines, one of them is manual and the other is fully automatic. The automatic machine is the “wax jet”. The process of exposing stage is different for both the machines.

In the process of Manual Machine, it is quite a time taking process. In this machine, the presence of machine operator is very important; otherwise the time for each screen will be higher than the original one.

Earlier most of the work was done through this machine but now the major load has been shifted to “was jet”. Irrespective of these facts the importance of this machine is still there.

All sizes and widths of the screens can be prepared through this machine. Basically the manual machine is used for the word of design studio.

The “Wax Jet” machine is fully automatic. The work done through the digital design studio is done through this automatic machine. The speed of exposing through this machine is relatively higher than the manual machine because there is not such need of operator at every stage of the exposing.

The process at this machine does not effect because of the presence of the operator. The exposing is being done through the wax on this machine that is why it has such a name.

The mechanism of this machine is that the machine is linked with the digital design studio, so the operator can access any of the prepared design in the studio. Then the wax is applied on the screen in such a way that the wax is applied on that place from where the operator want to open the meshes. Then the lighting process is done i.e. the screen goes through high power light.

The result of this process is that the place where only coating is there and there is no wax, at these places the coating got fixed in such a way that the meshes are blocked in a better way. After this Exposing stage the screen is taken to the next stage.

NML has ordered for “ink jet” machine which will enhance the production capability of the engraving department.

4. Washing Stage:

The screens are then taken from the exposing machines to the washing area. This is the area where the screens are washed so that the black portion can be washed from the screens. This is also called the Developing Stage. The screens are then kept on the light stand to see that whether the results are satisfactory or not. When the staff feels that the design is satisfactory then they send this screen to the heating machine for curing.

5. Curing Stage:

The curing is being done through an oven. The screens are kept about 20-25 minutes in the oven. This heat fixes the design on the screen so that after the final touch the screen can be sent to the next department.

6. Endring Stage:

During this stage the ring type iron is fixed on both the sides of the screens so that the screens could be taken to the printing department for printing.

7. Touching Stage

During the touching stage the final work is done. In this stage if there is any extra patch on the screen, then they are blocked with SCR52 so that the correct effect can be drawn on the fabric. This is the final stage of Engraving Department. After this step, the screens are then taken to printing department.

Design Studio

The design studio is a very important department of Processing Unit. The importance of design studio is because of the reason that without its right work nothing correct can be done. The presence of good design studio is very important for any good textile export organization.

The buyer sends the desired design in the following forms:

Through Sketches

Through Fabric Sample

Through CD

swages

Now after having the concept of design, it is then the responsibility of design department to make the screen design, to select the sizes of the screen, to select the repeats of the screens and most importantly to make the films and designs so that to have the same designs during the printing process as required by the buyer.

In the digital design studio the work is being done through the latest machineries and software and dedicated and educated persons are there for the purpose carrying out the process. All of the work in this studio is done on the latest machines and the work can be accessed through the Wax Jet machine.

In the other design studio, the work is being done through the experienced persons. In that studio the guideline is the first thing which is made at the start. After this step, there comes a chain in the design studio such as to separate the colors up to making the and preparing the films which can be used in the engraving department.

Stitching Department:

NML has two stitching units.

1: One is situated in Faisalabad

2: The other is situated in Lahore.

The bedding section is concentrated in Faisalabad while the Lahore unit is a complete unit which is involved in all kinds of stitching.

　

CUTTING DEPARTMENT.

The cutting department is the first department of GSC, which takes the fabric. The fabric, which is to be stitched, is brought from the folding department to the cutting department. In this department the fabric is cut according to the specifications & need. From the cutting department the fabric is transferred to the store from where the fabric is issued on the required floor according to the freezing plan.

The cutting department objectives

Quality control

Cutting

Minimize Wastage

So cutting department was performing these responsibilities. Mr. Arif the Cutting supervisor who shared the rules of cutting that is the foundation of the complete stitching department. Those are

One: LENTH FOR LENGTH (L*L)

Two: WIDTH FOR LENGTH (W*L)

The Process flow of cutting department is as below

SAMPLE PROGRAMME CUTTING

　

Stitching Department (GSC)

Stitching department is one of the well equipped machines department in the field of the Textile in Pakistan that’s why there are most of the loyal customers of the Nishat from all over the world specially WALL MART, TARGET and TARGET. These are the major have chain of stores around the world.

724 helpers are daily wages working as quality checker in the whole stitching department. 400 stitching machines in the whole stitching unit. Every machine operator has a unique no to find out the any type of the fault.

The objectives of the stitching department are

The cost minimization and

To minimize wastage

Best utilization of time

Quality control by line checker

Types of stitching

LOCK STITCH,

CHAIN STITCH,

TWIN NEEDLE,

WORK STATION

Blind stitch

Over lock

Flat lock

Dispatch Department

Dispatch department is performing two functions

WARE HOUSE,

MAID-UP DISPATCH

Dispatch department is responsible to dispatch all types of Export after packing. It depends on the marketing department when it should be dispatched. Its not necessary to dispatch daily. Dispatch department is to pack and dispatch report preparation the prime responsibility is to make maid-ups dispatch Report.

Dispatch Department has a continual liaison with Marketing Department and to fix stickers according to the customer demand on the cartoons. The dispatch report also send to the head office and as well as customer. Maximum container capacity is to six containers per day. Work force is use for loading or shipping in container.

Container Type:

Twenty fitter lengths

Forty STD 8.5 feet length

Forty STD = 9.5 height.

From cutting to dispatch process is as below

Cutting stitching Packing dispatch

　

COMMERCIAL DEPARTMETN:

Along with the cutting section, there is another important depart named as commercial department. The working of commercial department starts from receiving the stitching programs. First of all, they see whether it is a new order or a repeat order. Then they issue a demand order through their Purchase Department. It is the duty of the commercial department to arrange all the equipment needed in the stitching unit for every bulk order. The products which are the responsibility of the commercial department includes label, fusing, polyester rope, stiffener, insert card, poly bag, stickers, size stickers, identification sticker, barcodes, security codes etc.

A freezing plan is made every month so as to maintain & systemize the production process. The stitching units of NML have latest and number of machines to fulfill the customer need & requirements. Total number of helpers in on daily wages in the whole stitching unit is 724. There are 400 machines in the GSC (general stitching company).

Quality is most important consideration while production in NML. This is why the quality checks in stitching department are of very good level. In Nishat Sewing Lahore, Acceptance Quality Level 2.5 & AQL 4.0 is under practice. The Nishat Sewing Lahore is a certified for quality level from many organizations. This shows that the Quality checks in Nishat Sewing Units are of international standards.

As the stitching department is the last department before the dispatch of goods so a lot of responsibility comes on its shoulders. There are sample rooms in the stitching units so as to fulfill the sample stitching requirement for different markets to ensure customer satisfaction.

.

So the above is the brief overview of some of the NML operations. Now we’ll discuss the chances of further improvement in NML.

Export Marketing Department:

The export department of Nishat Mills Limited is known to be the best marketing department in the whole textile industry because of the commitment and dedication of employees, the determination of work & the best management system.

NML Marketing has a very strong liaison with their customers around the world. That’s why NML has different segments on the basis of different regions like North America, Australia and Europe.

Every region has a different Export Manager and its whole staff. The marketing responsibility is not only to just sales and marketing it has also to find out new horizons and new ways. That’s why Managers visit to new Markets around the world.

HAM TEX FAIR

Hamtex is a fair of textile held in Germany on every January of the year in which all over the world well established organizations make their display centers to attract new customers.

This department is responsible for the export of yarn, grey cloth and processed fiber. This department has to fulfill all the legal requirements and prepare important documents involved in the export of yarn, grey cloth and processed fiber. This department starts working from getting purchase order to deliver the shipment to the buyer.

　

　

　

　

The export department performs 3 major functions.

Shipment of Yarn, Grey cloth & Processed Fiber

After receiving packing list from shipping department, export departments starts its main functions. It usually prepares the following documents to ensure the timely shipment.

The most commonly documents which export department has to prepare and deal with are:

Letter of Credit (L/C)

Bill of Exchange

Commercial Invoice

Export Declaration Form

Certificate of Origin

Packing List

Customs Invoice

Textile Declaration Form

Inspection Certificate

Shipping Bill/Bill of lodging/Air Way Bill

Manufacture's Certificate

　

　

Letter of Credit

Letter of credit is the conditional undertaking on the request of the importer/buyer. It is also called documentary credit defined as;

“A written undertaking by the bank of importer i.e. issuing bank at the request of buyer or importer to make payments at sight or at determinable future date upto stated sum of money within prescribed time against stipulated documents”.

FNML parties are involved in the payment of the goods, i.e., the buyer, buyers bank, beneficiary, L.C. advising bank.

After clearance of the export documents, export department negotiate the papers with bank receive payments from the bank. Then NML local bank sends documents to the buyer bank and foreign bank release payment to NML bank with the permission of the buyer.

QUOTA SYSTEM

Most of the customers are American and U.S. Government allocate quota to third world. Infect quota is a quantitative restriction and more than that can't be shipped to America from a particular country

　

CLAIM FOR REBATE

Rebate is actually a "Duty Draw Back". The duty which an importer pays to government for the product that is re-exported after some process, then government pays back some of its part. This pay back of duty is called rebate.

　

　

MARKETING STRATEGY

The past year has been tough for the textile industry as competition is steadily and margin of profits is becoming smaller day-by-day. Our competitors from Asia have come up in a big way with lower prices resulting from lower overhead, cheaper and better raw materials and machinery.

Countries like China, Indonesia, India and Bangladesh played an active role in the fabric market. Improvement in quality and production capability was the main area of concentration.

Market for Yarns and Grey fabrics was diversified to increase the customer base and reduce dependency on the Far East. In this effort business with Malaysia, Korea, Taiwan, UK and South America was initiated in case of Yarns.

A new spinning unit of 21,672 spinning has also commenced, which caters to the weaving units in Sheikhupura.

In case of Grey Fabric market business was initiated in South Africa, North America, Japan, Italy, France, and Sri Lanka etc. Product range was also increased to cater to the differing needs of the buyers. Fancy and special items like Dobby Designs, Bedford Cords, and Cavairy Twills and stretch fabrics were developed which are being sold at premium prices.

NML has constantly updated our machinery, replacing old machines with new ones upgrading the existing set-up, leading to better efficiencies and quality products.

Nishat has established its name in new markets be creating specialized fabrics, designs and also by providing our customers with efficient service and excellent quality.

Leaving behind the traditional way of doing business and in our journey towards excellent it has consistently expanded its buyer base and explored the different markets around the world.

Keeping in view demand of the World market, Nishat Mills Ltd pursued its strategy of value addition and reducing the dependency on Grey Fabrics and Grey Yarn.

Having the foresight to assess that in coming year’s value addition will be the thing of the future, Nishat Mills Limited worked towards the achievement of its goal of future increasing its capability in value addition.

The export of processed fabric and made-Ups has shown market improvement as compared to last year. In Europe, Nishat has made the most growth in the year 1999.

It has placed us successfully in the middle to upper end of the market. Our strength in Europe is the curtain division.

This included yarn dyed dobbies, engineered confections, different finishes and embellished products. The plan is to continue with this winning strategy and at the same time we are trying to find new clients in the high end.

We are also exploring business opportunities in countries like Spain and France where Nishat has very little business at the moment.

North America is the star market for Nishat; it’s a new market for it after breaking up the exclusive arrangement with our previous sale set-up. The quota is coming down in 2005 and we have started to prepare for it internally as well as for the external environment. Bedding is the bulk of the home textile business.

Nishat is in the process of updating its machinery to cater the needs of the wider width fabric requirement for USA bedding business. Nishat is also taking up the social accountability issues very seriously, which are so dear to the American consumers. Lot of big brand US companies have visited us and are discussing the possibilities of a joint venture.

The opportunities are limitless, we have to review and analyze them very thoroughly to associates with the right people in the long run. In the short term we are building a small amount of quota, which will give us recognition as a bedding supplier.

Nishat is very strong in non-quota categories like curtain and table linen. These categories are best served with new product development (NPD). Nishat will coordinate the effort for NPD by all markets to optimize results. Nishat has achieved the highest sales in 1999-2002 for North America market.

On top Nishat has developed more direct and closer relationship with our end customers. Oceanic has been our most lucrative and mature marker. In business terms it is our “cash cow” market.

Primarily due to being a non-quota market it had no real limitations in this market. Despite economic problems in that region, it has maintained our sales figures in the year under review. This market is a good design source for other markets, which is helping us to maintain our print volumes.

Middle East market is composed of South Africa and the new emerging markets like the UAE, Egypt, Saudi Arabia, and Jordan etc. Nishat has dedicated new staff with fresh energy for the emerging market.

They have successfully broken the ground and we have very strong faith that these markets will give us good volumes in the near future. We are also targeting printed apparel business for the first time. The latest addition is the most ambitious Apparel Dyeing plant setup near Lahore, which has started its production.

The effectiveness and productivity of this plant will be further enhanced, as Nishat Mills Ltd moves towards becoming a more vertically integrated organization.

Our dyed fabric has already established its name in the market. It is being exported to some of the leading brands of the world.

Nishat has increasing its profitability by working efficiently, procuring better raw material and most importantly kept a very close association with its costumers.

It visits its business partners frequently and provides them with the best service possible. All of the above mentioned points led to strengthened relationship with its business partners making it very difficult for its competition to penetrate into its market share.

Nishat has provided its staff with better working environment and facilities, which enhanced efficiency and out put.

At Nishat, it is prospering due to our professional commitment toward excellence and giving the best results at all times and against all odds. Its marketing and production teams co-ordinance at all times and it focus remains on maintaining its position as the market leader in the textile sector of Pakistan.

　

　

　

　

Marketing process

　

Inquiry costing quote to customer

　

　

Check Greige

Processing cost per delivery

　

Approval received

　

　Lab dips/strike sample P.O received/Sales Contract sent

Greige booking

　

　

Dying/printing program issue

　

　

Fabric processed

　

　

Shipment sample dispatched for approval

　

　

Shipment sample approved

　

　

Shipment dispatched

　

SWOT Analysis

　

Strengths:

ISO 9001-2000:

Strong Security System

High quality product

Latest mechanized machinery.

Tremendous market positioning

Highly qualified and skilled management

Highly Motivated

　

Weaknesses:

High cost of production

Centralized decision making

Weak image in the international market

Small international market share

Less promotional activities

Lack of benefits and rewards for the employees

Workforce

Adequate financial resources

Competitive advantage

Equipped with MIS System

Own power generation plant

　

　

Opportunity:

Organization Can expand product lines

Organization Can capture new market segments around the world

Organization Can reduce the cost by proper utilization of resources

Organization Can hire more well-educated and experienced person

　

　

　

　

Threats:

New Entry of competitors

Buyer needs demands changes

Political instability

Changed of government policies

Globally Economic instability

　

　

　

　

　

Detail of SWOT Analysis

Strengths:

ISO 9001-2000:

Nishat textile is certified under ISO 9001-2000 and so it meets the requirement of international standard and has a value in the mind of concern people.

Strong Security System

Nishat textile limited has a greater security system. There are different hidden security cameras which capture the all moments.

OKTEX 100:

Nishat is also Oktex 100 certified its mean that Nishat is satisfied to not using hazard chemical using.

High quality product

Nishat textile limited using advance technology like they have modern machinery by which the quality of product produced is very high.

Latest mechanized machinery.

They are using modern looms which they have purchased from Japan and France. And by using that latest machinery the productivity of the employees are very high.

Tremendous market positioning

Nishat textile is one of the pioneer textiles in the Pakistan so it got the position in the mind of its customer. And being an old textile company people are loyal with it. Nishat has a better position in the mind of its customers.

Highly qualified and skilled management

The management of Nishat is skilled they have hired the foreign graduate people in their management and also experienced people from all over the country.

Highly Motivated Workforce

They are providing better pay to their employees and also bonus to them which motivate the workforce and they are doing well at work setting.

Adequate financial resources

The owner of the Nishat is one of the richest persons of the Pakistan and they have more plant and investment in other industries like cement, Bank, They have adequate financial resources to meet their requirements.

Competitive advantage

Because it is an old textile and it has still keep its position in the textile market on all others competitors in the nation wide which is its competitive advantage.

Equipped with MIS System

They have a management information system by which the departments and employees are connect with each other and they have a data ware house by which they can share their resources easily.

Own power generation plant

They have own power generation plant and Nishat is the pioneer in the private organization who start the power generation. And also selling to the WAPDA its produced power.

Weaknesses:[

High cost of production

The production cost is high because of not properly utilization of its resources.

Centralized decision making

The decisions are made by the upper management which is weakness of the Nishat because they have no proper idea about the situation and their decision can be not fruitful for the company.

Weak image in the international market

Because of the other textile specialized countries like China, Bangladesh etc the international image in the textile sector is very weak. Those countries providing cheap product to the market then Pakistan’s textile industries.

Small international market share

Although Nishat has very strong in the national wide but it has small market share in the global textile industry due to the sound competitors like china, and Bangladesh etc

[

Less promotional activities

The advertising and promotional cost of the Nishat textile is very low it can take advantage for more turnouts.

　

Lack of benefits and rewards for the employees

Some facilities that other providing to their employees like Transport and medical fee etc Nishat not providing to their employees because of which the productivity of the employees decrease.

Opportunity:

[

Organization Can expand product lines

Currently the Nishat not dealing in knitwear they can expand their product line by producing knitwear. They have plants and the extra cost for the production will be low for Nishat. And they also have better market repute.

Organization Can reduce the cost by proper utilization of resources

If the cost of different matters which is not utilizing properly is controlled by the Nishat management they can produce more in a few costs. It has to develop a further systematic process for controlling and managing resources.

Organization Can hire more well-educated and experienced person

They can take advantages by hiring more skilled people and they should hire young, fresh and energetic staff for their betterment.

Threats:

Buyer needs demands changes

Because of the research and development the design and the product of Nishat is just satisfactory as compare to competitors in the globally and they are not fulfilling the demand of customer.

Political instability

Political instability effects the Nishat because of the quota system the company can be restrict by the government to export.

Changed of government policies

Government policies are changing day to day so it is a threat for the Nishat to survive in such a changeable situation.

Globally Economic instability

Because of the economic instability the Nishat affected a lot. Dumping system which is rising on daily basis in the world can create many problems for the company and any uncertainty in the world like 9/11 may affect also the overall export.

　

　

PEST Analysis

Political Instability.

The political situation of Pakistan is not satisfactory. Due to the rapid change in the Government every government sets its own new trade policies.

Govt. should apply sustainable policies for the beneficial of the exporters as well as the investors.

Economic situation:

The economic condition of Pakistan can also affect the foreign investors increasing inflation rate make the cost of production high and thus reduce the profit margin of the investor.

Social situation:

The change in the lifestyle of the people affects the growing demand of the NTM products. The change in the lifestyle and needs in different demographics also affect the demand of the customers.

Due to all these changes NTM is performing excellent for the excellence organization as well as for the customer.

Technological factor:

Technological advancement in all the sectors of the country has changed the entire socio-economic environment. Especially in the textile sector there is a lot of technological development.

NTM Excellent computerized machines and devices are installed in the NTM \has made extension in its present setup by installation of well advanced technology imported from Japan China and France.

　

Learning as internee

It was a tremendous experience that I have availed with devotion and commitment. I have an interest in textile industry that’s because Textile is the back bone of the economy of the country. But one thing I want to share its not easy that looks it has a great toughness and complications in its process but the overall it was nice and great. Here I am sharing some of my learning regarding my internship in different departments.

First I met Mr. Yoshifumi Nariyama the sales representative of KANAI from JAPAN who came to introduce some new products in NML. I discussed about the marketing practices going on in the international Textile market. Ie to target your customer after knowing needs with product solution of the customer need.

In the spinning unit I have learnt about the yarn construction and the yarn specification and the process of cotton to yarn.

I learnt that every problem is solved with a systematic process like from the root of the problem.

I also performed some task in the spinning department like how to calculate the no of frames for a specific order and how many days are require for a specific order.

I learnt about the marketing procedure and required of the documents and dealing with customers. All the record is saved.

During my internship I learnt about the value that customer is the only who come first. The fulfillment of the demand of customer is our basic motive.

The quality control as well inception in the textile department should be parallel.

I learnt about the HR policies that how many types of hiring Nishat textile limited is using. And what are the procedures of the Nishat about HR matters.

I learnt that in the textile sector the cutting and stitching based on two rules

o (Length) (Length)

o (width) (Length)

Conclusion

　

　

Nishat Mills Limited is one of the leading groups in Pakistan. The system, the management style, the policies & decentralized decision making environment is really remarkable. This report is basically an attempt to identify the areas which need to be improved.

In this era of technology, the “Information” is the key to success in the business. This means that the successful businessman will be who will have the right information at the right time. This comment leads to the conclusion that the Information Sharing Process should really be improved.

　

The overall analysis is indicating that the company’s progress has mainly attained through dedication of employees. The effectiveness of its management, their willingness to take advantage of opportunities and face challenges of changing economic picture, this all contributes to the very much improved and sound position of company. This is really appreciable for the devotion and hard work of all the employees of the company

　

　

Recommendations

Recommendations for Improvements are:

At present facility of bonus is given only to production staff but such incentives should also be given to Head office Staff.

Special incentives should also be given to Head on Eid and on other special days should be given to the workers.

Medical facilities are given in mill but such facilities should also be given to management.

Different training courses should be arranged for the up lifting and improving the quality of work for employees

They provide transportation facility to only female employees I think male should also be provided with conveyance convenience. This will create the easiness for workers and reduce the wastage of time.

There is also a problem of work overload for the employees and it should be control properly so that the employees are motivated.

Employees should be paid extra for the work which they done after working hours.

　

Annexure

　

　

　

　

　

　

　

　

FORM OF PROXY

I/We______________________________________________________________

of________________________________________________________________

being a member of Nishat Mills Limited, hereby appoint _________________

_______________________________________________________________________

of ________________________________________________________________

or failing him/her ___________________________________________________

of ________________________________________________________________

Member of the Company, as my/our proxy in my/our absence to attend and vote for Me/us and on my/our behalf at the Annual General Meeting of the Company to be held on Monday, 31 October, 2005 at 11:30 a.m. at Nishat House, 53-A, Lawrence Road, Lahore.

As witness may hand this ________________day of ________ 2005

Signed by the said member _________________________________

In presence of _____________________________________________

　

Signature of witness Signature(s) of Member(s

INTERNSHIP REPORT

NAVEENA TEXTILE (PVT) LIMITED

1. K.M off Bhoptian Chowk, Raiwind Road Lahore.

Telephone: (92-42) 5320062-66

Fax: (92-42)-5320067-68

ADVISOR:

MADAM SADAF RAUF

(Lecturer) Management Sciences

Presented By:

SHOUKAT ALI

MBA-FA04-75

　

COMSATS Institute of Information Technology

M.A.Jinnah Campus, Defence Road off Raiwind Road, Lahore

　

Dedications

　

　

　

　

　

I dedicate this report to my loving parents whose prays, affection and support are always a source of encouragement for me to reach at this destination and a humble icon for others in future. My parent and teachers who give me real eyes that help me to leads myself and others in the dark and cruel world.

Acknowledgment

　

At first I am thankful to Almighty ALLAH and the Holy Prophet (P.B.U.H), their blessings have been with me in all good and bad times. Then I am grateful for the thorough support by my advisor MADAM SADAF RAUF and also Mr. NAEEM (Asst.Manager Admin), WAQAR AHMED (Merchandiser), for providing related

information on which this project is based. They were the constant source of inspiration and encouragement that helped in completion of my internship.

　

　

　

　

　

　

　

　

　

　

　

　

　

　

　

　

　

Executive Summary

This report consists of my six weeks internship at NAVEENA exports (Pvt) Ltd. This organization is situated in Lahore. The organization started its business from Karachi since 1967.

The salient features of this report are NAVEENA’S organizational background, its vision, corporate values and goals of the company. This report focuses its business operations including major suppliers of the company, its overall marketing strategies, Management Information Systems, its dynamic Human Resource, Purchase Merchandising and import & export strategies in special. This report also enhances the organization’s challenges in perspective to its domestic and international competitors. The organization’s BCG matrix, marketing strategy, competitive strategy and thus the analysis of all these operations is really a fascinating experience of mine. Finally, this report is a nutshell comprises of my practical learning, recommendations and suggestions.

.

　

　

　

　

　

　

　

　

　

　

　

Company Background

Group NAVEENA is a progressive name in the textile industry established in 1967 has become one of the largest manufacturer and exporter of textile in USA and Europe.

When started it’s operations, it was a small dying and embroidery unit in Karachi. Today NAVEENA exports comprises of three independent units, it offer distinctive

branded garments, producing six million pieces annually with special emphasis on fashion apparel, NAVEENA apparel, is a broad spectrum of source houses internationally.

Bond of Trust

　

It‘s bond of trust is consistent upon this remarkable notion given below:

“We are proud to have some of the most reputable name worldwide. This has been achieved over time through the approach of work fast and work smart.

The bond of trust has been developed because of our ability to fulfill our commitments to deliver the right product at the right time. Check and balances are placed from the initial stages to eliminate any possibility of error.

Vision of Company

　

The company undertakes to apply the vision in letter and spirit under the following guiding principles:

1. In time action

2. Clear understanding of customer’s instructions.

3. Clear communication with vendors

4. Clear instructions for production

5. Strict compliance with quality control system.

6. Total devotion maintains first class quality standard.

7. Absolute efforts for in time shipments

8. Career development opportunities for employees

　

　

　

　

MISSION STATEMENT

　

NAVEENA’s Mission statement, statement focused on its major commitments i.e.

Ø We make clothes that fit well, look good and most importantly feel great when you wear them.

　

Ø We are committed to become number one supplier of causal clothing around the globe.

　

It’s Corporate Values

　

　

Ø Team work

Ø Integrity

Ø Excellence

Ø Commitment to buyer.

Ø Maintenance of consistent standard

It’s GOALS

　

　

　

　

Ø Continuous improvement.

Ø Customer’s satisfaction.

Ø Quality of product and system.

　

　

Organizational chart

　

CEO/OWNER

Director

GM

Merchandising

Manager

Finance Manager

Production Manager

Export Manager

Quality

Manager

　

　

　

　

　

　

　

　

　

　

　

　

　

INTRODUCTION TO DIFFERENT DEPARTMENTS AT NAVEENA

Merchandising

　

　

Flow of Information

Buyers Merchandiser PPC

· Material Planning

· Time & Action Plans

· Production Plans

　

　

　

　

Production Department

o Yarn store

o Knitting

o Dyeing

o Cutting

o Stitching

o Packing & Finishing

o Purchases

o Stores

　

　

　

Merchandising

　

PURPOSE OF

MERCHANDISING AT NAVEENA

Merchandising is a global process through which products are produced, sourced, and sold all over the world. Merchandisers must have leadership for the value chain (developing, distributing, and selling products) in a global market. Merchandisers need to see "the whole process" from product innovation through consumer satisfaction. This requires logical thought processes such as problem solving, decision-making, and resource management. It is a critical need for merchandisers at NAVEENA, which has strong business background, yet it also stays focused on fashion or other products that undergo continuous change in the consumer-driven market. 

Here, the merchandising department is mainly divided into accounts buyers. This shows that there is individual or a team of merchandising, who takes care of a specific buyer or account.

Merchandising serves the following purposes at NAVEENA:

Gateway:

It acts as a bridge between buyer and the company for communication.

Marketing:

Merchandiser has to market his company in order to increase his customers and generate more and more revenue.

Costing:

Merchandise makes a cost sheet to see if the product is feasible or not in terms of cost and revenue. Merchandiser has to calculate the cost of products including all wastes and accessories to tell the final cost of the product to his customers.

Negotiation:

Merchandiser must have a negotiating power on the price to convince his buyers on specific price to lessen the chances of loss.

Sampling:

Merchandiser must send the sample to his buyers for confirmation and satisfaction. At this stage, Sampling is also done to avoid loss.

Information Management:

As merchandiser has direct contact with his buyers so the buyers have to give information about their product’s requirements and if there is any problem the merchandiser has to inform his buyers in return.

Implementation:

It is the responsibility of merchandiser to prepare the product according to the requirement of buyer.

Production Follow Up:

Merchandiser must be aware of the quality, packaging and on time delivery.

Process of Merchandising

　

　

The following process describes how merchandising carries out its responsibilities at NAVEENA:

§ Initial Inquiry

§ Initial Research & Development

§ Costing

§ Cost Sheet Approval

§ Order Booking Status Management

§ Sampling Process

§ Information Handling & Forwarding

§ Buyer Performance Review

Initial Inquiry:

An initial inquiry may be a simple fax describing briefly the target price *FOB and product or it may be detailed package from a buyer describing in detail.

Initial Research & Development

Initial Research & Development or preliminary discussion is carried out with RESEARCH AND DEVELOPMENT to see if the company has the capability to produce the product in terms of man and machines.

Costing:

Merchandise makes a cost sheet to see if the product is feasible or not in terms of cost and revenue. For this purpose a cost sheet is prepared, keeping in view the styling and accessories to be used on the product.

Approval:

After the cost sheet is prepared it is presented to the CEO or any other approving authority for approval. The approval is mainly granted keeping the profit in view.

Merchandising process continues if a specific cost sheet is approved.

Order Booking Status:

Once an order is received it is mentioned in order booking status. OBS is extensively necessary to maintain the track of records, capacity optimization, and planning further through OBS strategic planning is also carried out. It helps in calculating cash in and out follow.

OBS is normally kept confidentially and it is only accessible to predefine personal.

Advantages of Establishing OBS(Order Booking Status)

Following are the advantages to establish the OBS.

Ø Makes order follow up easier

Ø Allow better planning

Ø Helps in contingency optimization

Ø Helps in contingency planning

Ø Improves time management

Ø Improves coordination

Ø Helps in financial forecasting

This document must be kept confidential as it contains very sensitive information access to be only allowed at a specific level, as per the policy of company.

Sampling:

It is the complete process through which sampling approvals are taken. It starts from a proto sample and ends at shipment sample depending on the buyer as different buyer have different sampling requirements. Samples may be paid or free depending on the category, quantity, contract with the manufacturer.

Information Management & Forwarding:

All information received from the buyer is forwarded to the relevant department in the factory as to PPC package, checklist, accessories etc. information is provided which in terms is processed by the PPC and is forwarded to the relevant departments to start production.

Buyer & Country Dependence:

It is always better to establish an optimum buyer that dependence on the buyer be balanced so that just dependence on the buyer is also avoided and on the other hand dependence on too many buyer is also not recommended.

Updating of OBS:

OBS could Management Information Systemlead document in case it is not properly updated. Special checks need to be maintained for proper upgrading of the OBS ad if data on the OBS is incorrect capacity and management could be seriously affected.

　

　

　

　

　

　

　

COST SHEET

　

Style Number: 26898 Fabric: S/Jersey

Season: 1Q 2003 GSM: 225

Buyer: Target Gauge: 24

Division: Men’s

Consumption of yarn: 5.67Kgs/Dzn 12.50 Lbs/Dzn

　

Process Cost/Unit TTL Cost

Yarn 55 Rs/Lbs 687.5

Knitting 10 Rs/Kgs 56.70

Dyeing 65 Rs/Kgs 368.55

Cutting -　

Embroidery 2.5 Rs/Pc 30

Flocking -　

Printing 6 Rs/Dzn 6

Accessories 15 Rs/Pc 1440

Stitching 120 Rs/Dzn 120

Inland Freight 20 Rs/Kgs 113.40

2822.14647

Total Cost/Dzn

30

Over Head % Rs 846.6

Mat + OH + Cost Rs 3668.8

25

Profit % Rs 917.2

Mat + OH + Profit Rs 4586.0

58

Exchange Rate TTL USD 79.1

Rs/USD

Price per Piece USD/Pc 6.6

Package

Package is basically the collection of information given by the buyer regarding to specification, details and other related information about the specific product that has to be manufactured.

Components of a package:

Package consists of the following components:

1. Cover Sheet

2. Fabric Mill Sheet

3. Sketch Sheet

4. Accessories Detail

5. Size Specification Sheet

6. Packing Manual

7. Revision History

1. Cover Sheet:

It contains the general information about buyer, style #, garment, season, division.

2. Fabric Mill Sheet:

It contains the information about fabric for garment and it includes:

Division, style, season, type of Fabric, type of yarn, gauge, diameter, GSM, GSM before and after wash, dyeing, details, finishing details and shrinkage etc.

3. Sketch sheet:

It contains the information about front and back view. It also includes the stitching type i.e. (overlooks, main stitch, back stitch, folder, and flat lock).

4. Accessories Detail Sheet:

It contains the complete information about stitching threads, button material, button color, and button thread. It also includes the size of button (16, 18, 20 or 22 line.) and that either buttons contain two holes or four. Line is the unit of button.

Type of Stitching

Ø Over lock

Ø Lock stitch

Ø Flat lock

Ø Folder stitch

Labels:

It also includes the detail of label with its size specification. There are three kinds of labels;

Ø Main labels

Ø Size labels

Ø Care labels

Ø Tablet labels

Ø COO labels

And two main types of labels are as follow;

1. Woven Labels

2. Printed Labels

Accessories detail also contains detail about taps. There are three types of tapes.

1. Hearing Bone Tape

2. Plain Tape

3. Fusing Tape

Fusing tape further consists of two types;

1. Tear away

2. Non Tear away

Fuse able through glue while using iron.

Normal width of fusing roll is 40``.

　

　

　

　

　

Fusing Roll

Tear way is fusible while non-tear way is non fusible.

GMT Color

Color Code

Stitching Thread

Embroidery Thread + Main

Label Main Label

Size Label

Code Source

10% cotton DTM

Code

Style #Code Source

Red 0020 RedStucco MD-1001

ML101 Futek SM-1 Futek

Green 0030 GreenRed MD 1181

ML 101 Futek SM-1 Futek

Yellow 0040 YellowWhite MD 10001

ML 101 Futek SM-1 Futek

　

　

5. Size Specification Sheet:

It contains the size of garments.

Description Small Medium LargeX

LargeXX

LargeTolerance

Chest 1” below arm hole

23 23.5 24 24.5 25 + 0.5

Heam Across Shoulder

23 23.5 24 24.5 25 + 0.5

Cuff Opening _ _ _ _ _ _

Arm Hole _ _ _ _ _ _

In SPEC sheet all values are taken in inches while tolerance means acceptable deviation. Buyer gives all sizes.

　

　

　

6. Packing Manual:

Packing manual contains the folding details of a garment, printing details, and material to be placed. It also includes hangtags detail, carton dimension details.

Packing Strategies:

There are four packing strategies;

1. Solid Color Solid Size

2. Solid Color Assorted Size

3. Assorted Color Solid Size

4. Assorted Color Assorted Size

Solid Color Solid Size:

According to this strategy all garments are of same size and color. e.g

Garments = 42

Color = Red , Size = Small

Solid Color Assorted Size:

According to this strategy color of all pieces is same while there is variation in size e.g.

Garments = 42

Color = red

Size = Small, Medium, and long with ratio 1:2:1.

Assorted Color, Solid Size:

In this strategy color of garments is different while size is same.

Garments = 42

Color = Red & Blue

Size = Medium

Assorted Color, Assorted Size:

Garments are of different colors and sizes.

Garments = 42

Color = Red & Blue

Size = small & Medium

7. Revision History:

It includes all the changes required by the buyer afterwards e.g. buttons changed 3 to 2 or change in thread.

Ti also includes the revision description, date, time and initiating authority.

POLY-BAG

1. Types:

There are three types of poly bags.

I. Individual Poly bag:

Individual poly bag contain 1 pc/bag.

II. Blister Poly bag:

Blister poly bag contain more than 1 pc/bag in a carton.

III. Master Poly bag:

It contains more than one piece/bag.

2. Dimension:

10``

　

9``

Flap 3``

Fold Size L W

W x L x F

9.5`` x 10.5`` x 3``

3. Material/Transport/GG:

Printing

Weight of Carton

Instructions

Logos

Address

Buyer’s individual idea

Carton tape

Carton stickers

Cartons

Solid Color Solid Size:

Garments = 42

Color = Red

Size = Small

Solid Color Assorted Size:

Garments = 42

Color = red

Size = Small, Medium, and long

Assorted Color, Solid Size:

Garments = 42

Color = Red & Blue

Size = Medium

Assorted Color, Assorted Size:

Garments = 42

Color = Red & Blue

Size = small & Medium

Information Required For Carton:

Following information is required for a carton.

Ø Hang tags

Ø Tag pins

Ø Plastic Clips/Jet clips

Ø UVM (Universal Vender Mark)

Ø VMT (Vender Mark Ticket)

Ø UPC (Universal Product Code Ticket)

These above accessories are used 1/pc and only tag pins are used 2/pc and jet clips are used 4/pc.

Types of Carton:

· Regular slotted

· Telescopic carton

　

　

　

　

　

　

　

Regular Carton

　

　

　

　

　

　

　

　

Telescopic Carton

1. Dimensions

　

　

　

Flap

　

Height

　

Width

Length

L x W x H

28 x 26 x 8

　

　

2. Carton Printing

Ø Addresses (From & To)

Ø Carton Contents (Size, Color)

Ø Symbols

Ø Weight of Carton (With garments weight)

Printing Types

Ø 2 Side printing

Ø 4 Side Printing

3. Carton Accessories

Ø Carton Sticker

Ø Carton Tape

Ø Carton Strapping

Sampling Management Process

Management is the process to do work on time, achieve target/goal on time while using

All resources (machine, personnel, Human Resource).

Sampling is the complete process through which sampling approvals are taken. It starts from a proto sample and ends at shipment sample depending on the buyer as different buyer have different sampling requirements. Samples may be paid or free depending on the category, quantity, contract with the manufacturer.

Sampling programmers can be a cost effective, tangible and highly visible method of launching new product, boosting sales or re-educating lapsed users.

Sampling programs provide a conduit for consumers to experience product trials. Product samplings and mailings increase brand awareness and result in additional sales.

Sampling should be complete on time with resources;

Ø Initiate Sampling Process

Ø Sampling Budget (To Control Cost)

Ø Time & Action Plan of Sampling

　

SAMPLING PROCESS

Proto Type Sample:

This is the first sample given to the buyer. The sample is prepared according to requirement of buyer and this is the rough sample. The range of sample is about 1-2 to vary according to the requirement of buyer.

Comments on Proto Type:

Buyer gives his comments on sample and also recommends the changes in sample.

Counter Proto Sample:

This sample is based on the comments received from the buyer. For this sample, 2-3 pieces are required.

Salesman Sample:

Buyer sends the samples in market by salesman to get market feedback from customers it is done on 250-500 pieces or may exceed depending on season and customer. Buyer has to sell these garments to check and view.

Samples

Market

Feedback

Buyer’s Design

Buyer’s Merchandisers

Manufacturer’s Merchandiser

Comments on Salesman Sample:

Feedback on ample from customer is send to merchandiser/ manufacturer.

Pre-Production Sample (PPS):

Manufacturer prepares it. All changes are confirmed on it. 2-3 pieces are required in pre-production sample.

Approval of PPS:

It is the stage where a sample may be approved or rejected.

If accepted go ahead to next step and if rejected then there will be the process of revision of previous steps. PPC department is also involved at this stage. Once PPC is involved, no change in styling is acceptable.

Size Set Sample:

2-3 sets of different size are sending to PPC (planning production and control). Manufacturer keeps one sample himself and one sends to buyer for cutting approval. Its purpose is that buyer will make no change in cutting details. If he makes some changes, he himself will be responsible for any loss/ damage.

Fit Sample:

No change in stitching is acceptable at this stage. 2-3 garments are used in fit sampling.

Photo Shoot Sample:

Now the sample is ready fort shipment. Buyer picks some pieces randomly to test its gauge, GSM, shrinkage. If all these are according to the requirement of buyer then shipment is said to be ok. 15-20 pieces are picked up as a sample to test.

Shipment Sample:

This stage is the completion of total order. And the garments are sending to shipment.

　

　

SAMPLING BUDGET

　

It consists of the following data.

Sampling budget

Knitting plan

Dyeing Plan

Accessories Sheet

Cutting& Stitching Plan

1. Sampling Budget:

It contains the general information about;

Buyer: Target Fabric: Mesh

Season: 3Q 2003 Pieces: 500

Style #: 295 Division: Men’s

GMT: S/S Polo with 1x1 Rib DTM body at neck.

2. Knitting Plan:

Knitting plan is used for the description of material to be knit.

Description Yarn F. Width 36’’F. Width

26’’

Mesh 20 S Carded 200　

Rib 20 S Carded　

9’’

Total Width 209’’

Total # of Pieces = 500

Mesh for 1 Shirt = 400g

Mesh for 500 Shirts = 500 x 400 g

= 200,000   g

1000

= 2 Kgs

Total # of Pieces = 500

Rib for 1 Shirt = 18g

Rib for 500 Shirts = 500 x 18 g

= 9,000   g

1000

= 9 Kgs

Yarn Requirement:

20 S Carded =  209   = 5

45.36

Dyeing Plan:

Color C. Code Mesh Kgs Rib Kgs

Red -250 x 400/1000 = 100

250 x 18/1000 = 4.5

Navy -250 x 400/1000 = 100

250 x 18/1000 = 4.5

Accessories Sheet:

Description Factor TTL Material

Stitching Thread Red 200m250x200/2286 = 22

Stitching Thread Navy -250x200/4500 = 12

Main Label 1 1x500 = 500

Side Label 1 1x500 = 500

Label 1 1x500 = 500

Core Label 1 1x500 = 500

Twill Tape 1m 1x500 = 500

Poly bag 1 1x500 = 500

Tissues 2 2x500 = 1000

Cartons (24/Pieces/Carton)

500/24 21 cartons

Prepare By: ________ Checked By: _________ Received By: ________

Stitching Thread:

Small Cone = 2286m

Large Cone = 4500m

1m = 39.37’’

Cutting & Stitching Plan:

Color C. Code S M L XL TTL

Red -　

100 100 50 250

Navy - 100 100 25 25 250

Total　

100 200 125 75 500

Time & Action Plan:

Pieces = 500

Packing = 200Pcws/DAy

Stitching = 150Pieces/DAy

Cutting = 1day

Dyeing = 2 days

Knitting = 3 days

Yarn Package = 1 week

Yarn Req. Knitting Dyeing Cutting Stitching PackingFactory

Date

S.D E.D S.D E.D S.D E.D S.D E.D S.D E.D S.D E.D

28Jul 5Aug 9Aug 12Aug 15Aug 17Aug 20Aug 21Aug 20Aug 24Aug 23Aug 27Aug 7 Sep.

Prepare By: ________ Checked By: _________ Received By: ________

　

　

　

METHODS OF BREAKDOWN

Following are the methods of breakdown.

1) Purchase Order

2) Production Summary

a. Ratio

b. Percentage

c. Direct given by buyer

RATIO METHOD

Color C. Code

S

1

M

2

L

1TTL

Red - 1/4x1000=250 2/4x1000=500 1/4x1000=250 1000

Green - 1/4x2000=500 2/4x2000=1000 1/4x2000=500 2000

Htr Grey - 1/4x3000=750 2/4x3000=1500 1/4x3000=750 3000

PERCENTAGE METHOD

Color C. Code S (30%)(M

20%)(L 50%) TTL

Red - 300 200 500 1000

Green - 600 400 1000 2000

Htr Grey - 900 600 1500 3000

DIRECT METHOD

In direct method the buyer gives all values.

Color C. Code S (30%)(M

20%)(L 50%) TTL

Red - 1000 2000 3000 6000

Green -　 　

5000 9000

Htr Grey -　 　

6500 6000

　

　

FABRIC

CONSUMPTION CALCULATION

Following methods are used to calculate the fabric consumption.

Step 1:

Identify components of a garment.

Step 2:

Take finish width available from R & D.

Step 3:

Layout patterns + optimizes wastages.

Step 4:

Calculate length of layout.

Step 5:

Apply formula.

39.37 x 39.37 = 1550 yarn/pc/layout

L x W x 2 x GSM = ____________ = ___________

1550 No. of Pieces/day grams/Pc

While 2 = No. Of Layers of Fabric

Circular Knit consists of 2 Layers

Open width consists of 1 Layer

Step 6:

Add wastage.

Step 7:

Calculate / make plans.

Basic Terms:

Ø Open Pattern

Ø Close Pattern

Ø One Garment

Ø Components

　

Calculations:

Rib = 26’’

Fabric = 30’’

30 x 60 x 2 x 200 = 464.5

1550 2

= 233g/Pc

Neck Calculation:

Neck = 3’’ x 26’’ x 220 x 2 = 23 = 7.3g/Pc

1550 3

Cuff Calculation:

Cuff = 3.5 x 26 x 220 x 2 = 25.832 = 12.9g/pc

1550 2

Fabric = 233

Neck = 8

Cuff = 13

Total 254

　

　

　

　

Including small wastages254 x 12 x 2.2046 = 6.72lbs/Dzn

1000

　

TYPES OF WASTAGES

　

Cutting:

It includes;

Excess planning

Small wastage 5 % included in layout

Large wastage 3 %

Dyeing:

It includes;

Dyeing wastage 6-9% normally for fleece

Finishing wastage

Knitting:

It includes;

Knit 2-2.5% wastage that is left over yarn wastage

Yarn Dyeing:

It includes

5-7% Yarn dyeing wastage

WASTAGE

ADDITION METHOD

There are two methods used for waste addition.

I. Progressive/ Step By Step Method

II. Direct Method

Calculation for Yarn Consumption:

Length = 60’’

Width = 25’’

No. Of Pieces = 2

GSM = 220

60 x 25 x 2 x 220 = 425.80g

1550

425.80 = 212.90g/pieces

2

Calculation for Rib:

Length = 5’’

Width = 30’’

GSM = 250

5 x 30 x 2 x 250 = 48.50g

1550

48.50 = 12.10g/pc

4

Wastages:

= 5.95 x 1.05 x 1.03 x 1.06 x 1.02

= 6.95Lbs/Dzn

RESEARCH AND DEVELOPMENT

　

　

Ø Research and development or RESEARCH AND DEVELOPMENT is related with product development.

Ø Concerned Merchandiser forwards the Fabrication Info to the Product Library and will get the exact match.

Ø If there is required match, Documentation and Planning is done, Merch is developed and PD Plan is made by the PD center.

Ø If there is no exact match, Technical evaluation (Pricing), Documentation and Planning is carried out. RESEARCH AND DEVELOPMENT starts working here. After that PD Plan is made by the PD center.

RESPONSIBILITIES OF THE RESEARCH AND DEVELOPMENT MANAGER

Ø She decides the fabric styling, finishing Routes. He submits the fabric in the Lab.

Ø He compiles the results.

Ø He sends the results to the buyer.

Ø If OK for the results, Data is inserted into the computer for making the file. If result is not OK, we refinish the fabric.

Ø RESEARCH AND DEVELOPMENT sends the developed samples to the P.I. Lab, for the quick wash and sees the results after the 3 washes and required GSM is produced. After the quick wash, 20-30 g (weight) of the fabric is reduced just because of chemicals and detergents. Maximum sample weight is 10 Kg but is according to the merchandiser’s requirement. Yarn Count, Single Knit/Double Knit, Width and GSM is calculated and observed in RESEARCH AND DEVELOPMENT.

PRODUCT DEVELOPMENT PLAN

Ø It issues the work order, tells about the style, design, counts, gauges, fabric finishing routes and fabric dyes.

Ø PD plan is send to the three departments; RESEARCH AND DEVELOPMENT, SAMPLING, Sewing and ACCOUNT.

Ø One copy remains with the Merchandiser.

Ø One copy remains with the PD- Officer.

QUALITY PLAN

Ø Quality Product Requisition (QPR) is made in RESEARCH AND DEVELOPMENT.

Ø Within three days Quality Plan is issued from RESEARCH AND DEVELOPMENT.

Ø Quality planning includes the “Consumption Sheet or Pattern Efficiency” that is 85% required..

Ø Quality Planning also includes the “Garments to Kg concept”, that shows that how much garments can be abstracted from the 1 Kg of fabric.

Ø An independent and vertically integrated product development and research center is one of its own kinds. It is a 35000 sq ft facility, largest in Asia, designed to achieve the following

Fulfilling Designer’s Dreams

§ A facility where an idea can be accurately converted in to product in quickest turnover rate.

§ Continuously developing and innovating new and exciting fabrics, garments and finishes in line with ever changing trends in knitwear world.

§ Ensuring reproducibility and predictability of new products for production.

Meeting Merchandizing Requirement

§ Delivery of all types of samples with speed, accuracy, quality and competitive pricing.

§ Prototype samples in 3-4 days in actual fabric and color.

§ Sales man samples in 2-4 weeks at actual production parameters

　

MANAGEMENT INFORMATION SYSTEM Department

MANAGEMENT INFORMATION SYSTEM department more than 100 hardware computers in factory. He is responsible the maintenance and hardware related problem. Look after of these computers.

Only available recourses are planned.

Software’s:

The software’s that are being used in NAVEENA Textiles are:

Ø Inventory management

Ø Fixed assets system

Ø Salary system software

Ø Piece rate related software

Ø Engineering system

Ø Attendance system

Security:

Login is provided to every user and password is provided, he can change according to his convenience. In all organization we provide three types of login.

1. Home directory

2. Department share

3. Care drive

Home Directory:

Home directory the user can build folders, files. He is only responsible for compiling and security for this data.

Departmental share:

The departments can share data with each other.

Care drive:

In care drive the departments can read only. Write facility is not provided because security purpose.

Future plan:

In future plan they will implement the E Commerce for update the status of the garments. They also plan to implement ERP step by step. They are using SQL because this provides more security and cheaper than database.

HUMAN RESOURCE DEPARTMENT

　

　

　

Human resource department is responsible for

Ø Recruiting

Ø Training

Ø Compensation

Ø Performance appraisal

Ø Firing

Recruiting

In NAVEENA for management hiring three interviews are conducted if they are experienced. If they fresh graduate then first written test is done after this initial interview, and then final interview is conducted. This process is done for management trainees.

For workers and officer level the head of department hire. His criteria will accord job requirements.

Training

On the job training is mostly provided. But sometimes for management we conduct seminars; in LUMS some lectures are scheduled. Some mangers they visit to foreign countries for getting training.

Compensation

For management trainees they provide Rs.12000 and other according to job requirement and skills of the employee. They also compensate according market going situation.

For workers they are providing minimum Rs. 3000 according to government rolls. For officers the G.M decide how much salary will be provided. This depends on the nature of the job and skills, experience of the employees.

Firing the employees

If any employee is not doing his job very well then the Head of the department fire the concern employee.

PRODUCTION PLANNING AND CONTROL

　

　

Production Planning and Control (PPC) is the nervous system of the organization and its basic task is to receive information from the merchandiser and link it to the production. It involves the Pre-Production Analysis to ensure quality and reproducibility.

PPC has two further branches

A) Material Resource Planning

B) Production Planning and Monitoring

MATERIAL RESOURCE PLANNING

Material Resource Planning is done for the material procurement, like sundries, yarn and fabric. It is basically done to analyze that how much is needed, what is needed, when is needed, what is the cost of the material and how to acquire the resources.

PRODUCTION PLANNING

It includes the planning like the Sewing Plan (we can also call it as the Master Plan). Back Ward Production Planning is done and this Production Time Line involves when’s and what’s of the production. Date Wise Plans are made from work order to delivery.

MONITORING

It is the different entity. Monitoring is done for the whole production process and in this we check out the planning implementation. If the planning is failed, re-planning is done for that. Off- the- track and On-the- track planning is also done by the PPC.

DOCUMENTS RECEPTION IN PPC

Two types of the documents are received by the in the PPC from RESEARCH AND DEVELOPMENT and Cutting.

RESEARCH AND DEVELOPMENT

PPC receive Quality Plan from the RESEARCH AND DEVELOPMENT. In this Quality Plan specification, quality, width, weight, dyes, gauges and counts are mentioned.

Cutting

PPC receive Fabric Consumption Patterns from the Cutting department and plans that how much fabric must be used.

DOCUMENTS GENERATION IN PPC

Store Plan

Store Plan can also be called as Accessories Plan. It involves all the documentation about the sundries being used in the production of the order. It also involves the information about Threads, Buttons, Sewing and Labels. Store Plan is basically a Quantity Plan.

Dyeing Plan

It is related with the Dyeing of the fabric that how much fabric is required for an order, and then it is converted in to the Acro fabric. It plans for how much dyes and chemicals are required. For the procurement of the materials, PPC goes for the purchase department.

EXTRA PLANNING

3-5% extra planning is done for the losses. There are some visible losses and some invisible losses. Visible losses occur from cutting to shipment. Invisible losses are being made in Dyeing process and Finishing Process. Any extra planning requires

extra cost. So for the additional planning and additional cost, PPC managers have to go for the Chief Executive.

The Production Planning and Control is the nervous system of our organization and undoubtedly it is our key success factor. The nucleus of NAVEENA and Sarah’s remarkable success has been its impeccable system. PPC conducts detailed pre-production analysis to ensure quality and reproducibility.

　

PURCHASE DEPARTMENT

Every aspect of organization for the manufacturing of the product like sundries, stationary, parts of machineries that can be available locally, chemicals and dyes etc. have to be purchase locally from the local markets. These are usually the general items, involve local purchasefor the purchase of machines machinery that is not available in the local market, import department involves in such purchases. This whole import department is concerned with the high involvement machinery. They whole purchase department is do not work the work order or purchase order. Things are purchased according the buyer demand. No buying is done without the order. As such no inventory level is maintained for such goods as these goods are utilized immediately and plan is made for the minimum for the week. Three most important documents are used in the purchase department.

Store Plan Store plan comes from the Store and purchase Requisition; It comes from the warehouse. Buyer provides purchase Order and according to this the store department make plan. It is made for one supplier only at one time only. Demand of the supplier is mentioned in the purchase order. These documents are used all over department.

MPR: Material Procurement Recognition

Every department issues this then the purchase department is responsible for procurement.

MRP: Material Requirement and Planning

This document is used within factory for issuing the material.

EXPORT DEPARTMENT

　

EXPORT PROCEDURE

　

Purchase order is received from buyer through the merchandizing department. A fax message is send to buying house/buyer for opening L/C. Expected Audit date/time received and go-head is taken from concerned unit (manager) to carry shipment. Arrangements are made for the transportation to move the consignment by the road/train/air as per plan.

Funds arrangement for the transportation and custom clearance charges.

Shipment moves for the Karachi through the following ways. Eg. Truck, Train, and Air. Rates are as per shipment volume.

Cargo lifting advice is fixed to custom clearing agent/ Forwarder/ Transportation. Forwarder / clearing agent make arrangements for the custom clearance and booking of the space at earliest vessel. Following documents are required for the custom clearance. Detail is given following;

INVOICE

In Invoice following criteria is required.

Ø Consignee and Applicant Addresses

Ø Garment Description

Ø Garment Price and Total Invoice value

Ø Net and Gross Weight of Garments

Ø PO (purchase order) no.

Ø Freight Terms; FOB/ C&F/ CIF/ Ex-Work Pakistan.

Ø From # & Date

Ø L/C. #(letter of credit)

PACKING LIST

There are following details in the packing list required as per buyer’s instruction or mentioned in L/C.

§ Consignee and applicant addresses

§ Product description

§ Garment Style and color

§ Net and Gross weight of Garments

§ No. Of Pieces in the Carton and Carton Dimension also other necessary information, which gives help for the custom clearance.

Export-FORM

E-FORM is issued and attested by the concerned bank.

VALUATION FORM

It is for the custom purpose to inform the value of the consignment to the State Bank of Pakistan.

BILL OF ENTRY

Applicable only in case of the imported material used in the manufacturing of the garments for the export purposes.

SHIPPING BILL

The forwarder prepares shipping bill. After the sub Management Information Systems ion of the custom docs, by the forwarder, custom authorities check the docs. And examine the shipment accordingly. They write the report on the backside of the shipping bill and allow the shipment for the export from the Pakistan. All these docs are then returned to the export department.

QUOTA PROCEDURE

Ø Arrangement of the quota for the exporting the above goods or the garments as per category.

Ø Quota purchase from the open market/ EPB (export promotion bureau)

VISA PROCESS

After receiving the Docs from the forwarder, Export Department prepares the Visa docs, which are required for the export of garment to the following countries; USA, CANADA, EUROPEAN countries.

The set of Visa with required docs is presented to P.H.M.A. for the issuing/ entering of the Passbook and the given serial numbers.

After this P.H.M.A. pass the Visa to the E.B.P. for the Visa issuance. Then after the checking of the docs Visa is signed and stamped by the Director of the E.P.B (textile section). All original docs are returned to the export department.

NEGOTIATION / COLLECTION

After the completion of the Visa process, we submit the docs in the Bank for the negotiation/ collection. The docs are prepared according to the L/C. or the buyer requirement.

DOCUMENTS FOR THE BUYER

Export department also prepare documents for the buyer for the custom clearance of the shipment at the destination.

PAYMENT PROCEDURE

After the negotiation/ collection procedure of the docs, bank dispatches the same to L/C opening bank, to realize the payment. Foreign bank is bound to realize the same within the 10 to 15 days. After realization of the payment, our bank is bound to issue the PRC within the working days.

REBATE CLAIM

After receiving the PRC, export department claims the duty draw back (rebate) from the customhouse in Karachi or Lahore.

COMMERCIAL INVOIVCE

In the commercial invoice all the details are mentioned required under conditions of L/C for the custom clearance and other necessary purposes.

PACKING LIST

It consists of color, weight, product code/other, coding numbers, no. of cartons, carton dimension, and carton packing.

BILL OF LADING/ AIRWAY

This is according to the L/C terms and conditions.

SHIPPING CERTIFICATE

In this certificate the shipping line intimates that the vessel /flight is not affected buy on Indian or the Israeli Flag vessel.

BENEFICIARY’S CERTIFICATE

It is according to per buyer requirement.

§ INVOICE: It is custom attached and details of the imported material are also given, that is used in the manufacturing of the garment.

§ SHIPPING BILL: It is provided by the clearing agent and attested by the custom authorities.

§ BILL OF LADING: in it all the required information is provided which is needed for the custom clearance.

§ BILL OF ENTRY: We need detailed information like Description, Foreign Exchange Rate, Insurance, H.S Code, Weight, Custom and sales tax duties and etc.

　

　

　

　

　

　

　

　

　

　

Business Operation

　

Management:

The management team of NAVEENA comprises of dedicated and highly motivated individuals, laying much emphasis on teamwork and interdependency, which brings synergetic results.

They bring with them, experience in the knitwear industry and diverse educational backgrounds, both local and international.

NAVEENA has tried to develop a company culture where quality is given the top priority, innovation is encouraged, system are followed and fool proof inspection procedures at every stage of production and carried out.

Quality Standers:

Continuity in quality is an integral part of this organization. there is team of professionals who head this department .their work starts from yarn till the end product .strict quality control measures are implemented from the beginning and at all subsequent levels to maintain standards .

Quality Emphasis:

The organization has already achieved ISO 9002 certification and has acquired various quality certificates and awards.

Laboratory Testing:

The organization have a comprehensive lab to check dye lots .its the organizational routine to check fabric for shrinkage, lot to lot shade continuity, color fastness to corking etc.

Among other equipment the most noted are the data colors, spectra flash, tumbler and washing.

Major Clients:

The organization is working with leading multinational companies and believes in developing long term, sustainable relationships rather then “one time” commercial contract. Organizational buyers are recognized and respected names in the international apparel industry, including the followings,

　

Factory Facility

Factory area KHI 12000sq.yards covered area 175000sq .FT

Factory area LHR 5375sq. yards covered area 150000sq FT

No. Of employees-KHI 2500

No. Of employees LHR 1500

Gov’t departments involve with organization:

There are many departments, which are involved in term of Govt intervention in the textile industry, which are followings,

CBR

Ministry of labor and manpower

Ministry of excise and taxation

Custom department

Quality standards assurance organization

State bank of Pakistan

Structure and design of organization:

Structure of the organization is flat and functional. And it is to some extend is a mechanistic organization. But it is due to its mass production .The organization along with its functional structures has horizontal linkage which is most necessary thing in garment industry because of high quality consciousness.

　

　

Plant and Equipment:

The organization’s most of the plant and equipment is procured internationally, configured to generate optimal production at all stages and to ensure high quality.

In term of knitting

Type Model Gauge Diameter No.

Auto striper (terrot) s4f-248 18 30 5

Auto striper (terrot) s4f-248 20 30 2

Auto striper (fuquhara) s4f-248 18 30 2Auto striper (fuquhara) s4f-248 20 30 1

Mini jacquard (terrot) s3p4f-148 18 20 1

Feed stripe (Mayer & cie) 1mv4 11 20 30 1

Feed stripe (Mayer & cie) 1mv4 11 20/24 30 1

Feed stripe (Mayer & cie) 1ml-bf 20 30 1

Eight lock double knit t130-9621 18 30 2

RIB (pai-lung) t130-9621 16 34 1

　

Flatbed machines:

Make Origin Gauge length Number

Matsuya Japan 14 80cm 16

Matsuya Japan 14 56 05

　

　

　

　

Dying

　

Yarn dyeing:

Description make capacity number

fong’s yarn dyeing H.K 30kg 1

Atyc yarn dyeing H.K 90kg 1

fong’s yarn dyeing H.K 200kg 1

fong’s yarn dyeing H.K 300kg 3

fong’s yarn dyeing H.K 750kg 1

atyc yarn dyeung H.K 850kg 1

fong’s yarn dryer H.K 300kg 1

these machinbes are wiuth a capacity of four batches.

Fabric dyeing:

fong’s 2t soft flow H.K 300Kg 1

Fong 3t soft flow H.K 500-600kg 2

Atyc –ht 4t soft flow SPAIN 900kg 1

Atyc –ht soft flow SPAIN 165kg 1

Winding machines:

SSM cone winder Switzerland 2000kg 4

Re-winder local 9000kg 6

Garment washing:

Suit lick washing machine H.K 4000/day 2

Finishing:

hyadro extractor local 60kg 1

Hydro extractor Taiwan 60kg 1

Tumbler (askmer) H.K 30kg 8

Tumbler (sutlick) H.K 30kg 2

tumbler (askmer) H.K 30kg 8

Tumbler china 60kg 1

Dryer (sanatax) Switzerland 5 ton/day 1

Stenator Italy 15ton/day 1

Fabric slitter local 500kg 1

Squeezer Switzerland 6000kg 1

Corino (slitting machine) Italy 12000kg 1

Monforts (6chamber stenter Italy 15000kg 1

With graving system)

Gravimeter system raising machine china 3000kg 1

Cutting /Embroidery:

Electric cutting machine KM (Japan) 12 heads 5

Embroidery machine tajima 6needles 1

Band knife nagi shing 1

Stitching

　

　

480 –sewing machines comprising along with 5 uni8ts having capacity of 22000 dozen garments /month.

Auxiliary equipment:

The organization has an in house repair, maintenance and development facility classified under electrical and mechanical department. Currently the following equipments are installed on the pre-Management Information Systems.

Equipment Made Specification Number

Boiler England 5.50ton/hr 1

Generator USA 375KVA 1

Generator USA 300KVA 1

Compressor Japan 1580lbs 4

The organization has a strong capacity of production, which also works as competitive advantages in term of technology. The brands which the organization is currently using all are of well named in industry. Which also work for attracting the buyers towards organization, and helpful for obtaining order and fulfilling it on time.

NAVEENA Dying

　

　

The dyeing process starts from the sample swatches that are sent by the Buyer.

Lab Functions:

Samples are prepared according to the needs of the buyer and the process is called lab dipping. After the buyer then the dyeing approves the samples people follow the production plan provided by the PPC.

Dyeing Process:

There are two types of dyeing

1. Yarn Dyeing

2. Fabric Dyeing

There are two Methods

1. Hi-Temperature dyeing

2. Atmospheric Dyeing.

Machinery:

In Yarn dyeing all machines are of Hi-Temperature. The capacities of the machines are as following.

1. Machine 1 is 800kg

2. Machine 2 is 90 kg

3. Machine 3 is 30 kg

4. Machine 4 is 200kg

5. Machine 5+6+7 is 300kg each

6. 8th in line is only drier of 800kg.

In fabric dyeing three machines are hi-temperature and rest is atmospheric. The capacity of the machines is as following.

1. Machine 1 is 700 kg

2. Machine 2 is 150 kg

3. Machine 3+4 is 550 kg

4. Machine 5 is 350 kg

5. Machine 6 is 50 kg and is named as winch machine.

6. Machine 7 is 20 kg and is also winch machine.

After the dyeing fabric is transferred to finishing.

Reasons for dyeing:

For attractive purpose

For uniformity

Shade variation controlling

Color gives:

More comfort

More satisfaction

Process flow:

Singeing

To remove protruding fibers

De –Sizing

To remove the size for uniform dyeing (over dry)

Scouring

To remove added and natural impurities

Detergents

To remove soil and keep it suspended in

Water. So they don’t penetrate again in the fabric.

Bleaching

Removing of color

Changing absorbency

Mercerization

Length of fiber

Fineness of fiber

Types of dyes:

Reactive dyes make covalent bond Disperse dyes make a penetration

Vat dyes make a trapping

Sulphur dyes -

Direct dyes make a overlapping

Component of dyeing:

Temperature

Salt

Machines

Factor effect the cost:

q Labor

q Raw

material

q Machinery

q Maintenance

q Electri

city

q Transportation

q Dyes

q Chemical

q Gas

General requirements by buyers

· Strong color bonding

· No bleeding & staining

· After twenty washes no change in color

· No absorption affect on garment after twenty washes

Recommendations for cost control in dyeing house:

1. Compare the cost with competitors

2. Before selecting the product consider followings;

q Price

q Quality

q Availability

q Performance

q Packing

q Storage

q Concentration

q Final cost

q Compatibility

q Environmental factors

Required expertise:

Electric and electronic work

Mechanical work

Machine / work knowledge

Responsibility:

Maintenance Manager / Knitting Manager

Benefits:

a. Less stoppage

b. More production

c. High quality

NAVEENA Knitting

　

　

There are two kinds of knitting:

· Flat knitting

· Circular knitting.

These both categories of knitting are being performed at NAVEENA 2 facility. Let’s take a brief over view how it is done.

Flat Knitting:

The purpose of flat knitting is to prepare collars and coughs. They are given the fabric by circular knitting department and after that the technician at the flat knitting machine feeds the designs according to the demand of the buyer. They are given a complete production plan by the PPC department, which they need to follow to get the desired result.

Machinery:

For the purpose of flat knitting NAVEENA 2 facility flat knitting department is equipped with 21 automatic flat knitting machines. Three operator’s one helper and a master manage them. The capacity of each machine is 250 sets in 24 hours, and according to the statement of machine operators they are easily achieving the maximum capacity on regular basis. All the machines are 14 gauge machines, which mean every machine can have 14 needles per inch. The more the gauge

better will be the quality. Common error is that of needle break, which spoils the whole fabric if not detected at once. Setting the needles in the machine according to the requirement is an art and the master has to be the master in this art to get the desired result and to avoid error.

Maintenance:

There is a separate maintenance department present but there is no concept of preventive maintenance, only break down maintenance is done which costs the organization much more than the preventive maintenance.

Quality Parameters:

The quality checkers inspect the flat knitted fabric on the basis of Wales and courses. They check whether the whales and courses per inch meet buyer requirement or not. Wastage of 2 % is allowed.

Circular Knitting:

They again get their line of action from the PPC department. The purpose of the circular knitting is to convert yarn into fabric.

Machinery:

There are total 15 machines 9 of them are computerized and called auto machines. These machines are capable of making maximum stripes on a fabric while using four colors at a time. The auto machines are mostly used for the preparation of fabric of dark colors and having stripes or repeat. The remaining six machines are called feeder machines. They cannot make a stripe more than 2.5 inches on a fabric. Mostly they are used for simple fabrics of white and light colors. Each machine is capable of producing 150 kg per day. A total of 192 cones of yarn can be added to a single machine of four different colors, 48 cones belong to each color. One person handles each auto machine and two feeder machines are under one person. There is a supervisor and a master present to keep check on the things. The machinery is not capable of producing French terry and fleece fabric. Any order of these two fabrics is outsourced. All the machines have flexible gauge facility, which is set according to the buyer requirement.

Quality Parameters:

After the fabric is prepared it is checked by the quality personnel on a machine called clatter machine, using the 4 point system. This machine enables the quality

personnel to detect various defects in the garment, after detecting the error they mark it and send for appropriate corrections. The errors, which cannot be removed, are then cut off in a way that their effect should not be on the finished garment.

　

Finishing:

The finishing can be termed as the process for drying the fabric. First of all the fabric is transferred to hydro machine which squeezes the water out of fabric. Then the fabric whose rate of shrinkage is more is sent for tumbling which is the traditional approach for drying and the other fabrics are transferred to tenter fesaro + compactor machine, where fabric is straightened. The machine is hi-tech and fully computerized. Then the fabric is transferred to slitting and squeezing machine. After that comes in the stenter machine having six chambers. After that the fabric goes through the erasing machine which smoothens the fabric mostly fleece is erased. Now fabric is ready and is transferred to NAVEENA 1. All the machines are of hi-technology and produce great results. A dryer is in the process of being set up and will soon be functional increasing the efficiency of the finishing section.

Quality Parameters:

The quality personnel check the quality after the erasing and the main concentration is upon the variation of shades. If the fabric shade varies then it is sent back for re dyeing. The sophisticated fabric in whom there are more chances of shade variation it is even checked during the dyeing process by the quality personnel.

Cone WINDING:

It is of two types:

Ø Soft winding

Ø Re winding

Soft winding:

The yarn when firstly come is hard .the cone winding department re wind it to make it soften. Then it become easy to dye and the dye quality become higher.

Re winding:

After dyeing of the yarn it is re winded and is transferred from spring wind to the paper wind.

The biggest draw back is that there are no control checks what so ever in the cone-winding department. If any thing Management Information Systems the eye of supervisor then any error can easily go through

Major Suppliers

　

Din spinning

Sapphire

Ejaz spinning

Azgard9

Dewan Mills

Nishat Mills

Hussain Mills

Factors Affecting on Organization in Term of External Environment

There are factors which are currently affecting the organization and are as follow:

Gov’t policies

　

As the policy of Gov’t changes it directly effects organization because there are many factors, which entice the organization with Gov’t

· Tax policy

· Rebate

· Quota

· Industrial policy of Gov’t in term of garments manufacturer.

· Subsidies from Gov’t.

· Labor policy

　

Brands

　

　

Side out

High sierra

Antigua

Cherokee

Amc –stores

Aeropostale

Phat farm

Roots

Hard rock café

Hollister

Brake water Perry Ellis

Wal-Mart

The company devotes considerable time and effort to consolidate its present relationships and develop new ones, agin, with the goal of establishing relationships, which are long term and diversify the company client base.

Suppliers of organization:

The company also has the list of compatible suppliers and includes them in term of stakeholders and used to facilitate them with the maximum beneficial way to develop long-term relationship with them. The supplier side is although most critical aspect of the organization in term of quality and quantity because of the large-scale production in NAVEENA.

Organizational Culture

NAVEENA consider its employees to be its biggest assets. Adequate facilities exist and are constantly upgraded to improve the social environment.

The organization has following statement for their social culture

“We strictly, under all cost, forbid child labor and forced labor”

Competition

　

　

There is a big competition between industry .in term of taking orders and the main aspect is price of manufacturing garments. There is less innovation and differentiation in products.

So, because the commodity is same and due to witch there is cost factors which is very high and directly effect organization.

Domestic competition

· Masood textile

· Ammar textile

· Leisure textiles

· Irfan textile

· Shah –kam textile

· Angora textile

· Combined fabrics

· Comfort textiles

· Mian sons

These are all major competitors of the organizations, and all are Lahore based.

International Competition

The overseas competition is now –a –days very less but it will become very high after the remove of ATC .the organization has to develop its self from now to be in market in future. Because in that huge dynamic e4nvironment there will be more dimensions in organization to meet with uncertainty.

It can be come from:

· Singapore

· Bahrain (because the USA made a contract with UAE)

· China

· Bangladesh

· Thai-land

· Honk –Kong

· Malaysia

　

Technology:

Technology is also a key sector in term of external environment for garments industry. Because the technology is also working as a substitute for man power with more efficiency. The industrialist has a solid point that it also saved cost i9n term of

· Error reduction

· Les labor cost

In order to compete internationally the organization must have to depend on new and advanced technology. Although the technology, which NAVEENA is using not very low but there is no end in business.

Structure and design of organization:

The structure of organization is functional with horizontal linkage.

The organization has mechanistic design and which is working on the basis of efficiency, which means more production, maximum out put from least input.

　

　

　

SWOT ANALYSIS OF NAVEENA

During my internship I observe some strengths, weaknesses, opportunities and threats for Naveena are given below.

STRENGHTS

Ø Big buyers from market

Ø Well known strong suppliers

Ø Strong departmental structure

Ø MANAGEMENT INFORMATION SYSTEM department

Ø Quality Provider

WEAKNESSES

Ø Not a big player in market

Ø Low integration between departments

Ø Too much decentralized the departments.

Ø No RESEARCH AND DEVELOPMENT

Ø No marketing research

OPPORTUNITIES

Ø In WTO(World Trade Organization) implement quota will free this will be opportunity for especially NAVEENA because he can produce much more.

Ø Many brands we can start like sports garments.

Ø Expansion of business

Ø Diversification In term of open trade

Ø Capture local market

　

THREATS

Ø New entries in the market like small level unit after WTO implementing.

Ø China and India is big threat when quota will free

Ø Differentiation

Ø Switching of buyers

Ø No Isolation

Ø Persistent quality

Ø Low price from other countries

BCG MATRIX FOR NAVEENA

　

　

　

　

Boston Consulting Group Matrix (BCG MATRIX)

The BCG matrix measure market attractiveness by market growth rate and it assesses the firm ability to compete by, its relative market share. The BCG matrix assumes the causal relationship between market share and profitability.

Stars

Questionmark

Cash cows

Dogs

There is a huge slum in garments industry, after the incident of 9/11. This is directly and indirectly affecting the whole market. But NAVEENA is the organization working quite well, even in this situation and earning from international market. That’s the sign due to which I analyze that the NAVEENA is a cash cow in term of BCG matrix.

　

Competitive Strategy

　

Ø In garment washing different effects is provided to customer.

Ø Value added products are provided.

Ø Pull and push strategy is adopted

Ø Performance is better.

Marketing Strategy

　

　

§ The product improvement will be marketing strategy.

§ Product innovation

§ We make reasonable price against market.

§ Outlook of garment is very smart and excellent. This is accepted in the market.

§ Targeting the young people and using price strategy to satisfy them.

Marketing Analysis

　

　

　

The structure of organization is quite well but the design is not. Because the coming trends are moving very fast. And in the end of this year the environment that is now-a-days stable will become dynamic. Then there will be need of

Differentiation

Added features Effectiveness

Quick response to changes

More flexibility

More complexity

Competitive edges not one but more then that.

It’s a big process, which can’t be achieved in day’s .It take lot of time to enhance theses capabilities in organization. Either to sit a side and looking on trend‘s changing the organization has to do a lot.

Practical learning

　

　

　

　

ECRU YARN STORE AND CONE WINDING

. At first I get the information about Ecru Yarn Store that how after the order of buyer a company bye the ecru yarn and store it according to W/O. After that I got the information about Cone Winding that how it works and what are the functions of cone winding.

YARN DYING / LAB AND CIRCULER KNITTING AND FLAT KNITTING

I learn about the yarn dying that how an ecru yarn dyed and after dying process how it preserves. Then I attached with the process of circular knitting and flat knitting and learn about these two processes and its importance.

ECRU FABRIC STORE / LAT MAKING AND FABRIC DYING/ PI LAB

I learn about the process of maintaining ecru fabric store and lat making. After this knows about the process of fabric dying and then there was a difficult and main process of approval and rejection of fabric in PI lab. NAVEENA following the international standards of approving and rejecting the dyed fabric.

DYING FINISHING AND DYED FABRIC STORE

Today I learn about the process of finishing the dyed fabric and how the fabric get ready for the next process and after this after all quality checks the fabric is ready to next process and for this it preserve or store in dyed fabric store.

PPC DEPARTMENT (PLANING PRODUCTION AND CONTROLLING)

.It is one of the major department of any textile Industry without having god professional it can not work so knowledge about PPC is very much useful.

PRODUCTION SHEET

Production sheet is given from buyer and buyer tell his requirements actually all the specs is given in this sheet, so according to this sheet we develop the required garment for approval and also we analyze the cost as well.

RESEARCH AND DEVELOPMENT (RESEARCH AND DEVELOPMENT)

In RESEARCH AND DEVELOPMENT we analyze and finalize the root of fabric that how it will complete and in finishing how it approaches the buyer requirements, actually we get all the lengths and get the information of cost as well and other things about the roots.

CONSUMPTION

After getting the all the lengths of garments we know about the consumption and it is known by the defined formula of body and sleeve. we get the sum of body and sleeve and get the consumption of garments.

ASSESRIES

In this we plan about how much accessories will be used in garment and also wastage factor will be added in it.

COSTING

In this process we added all the consumptions and compare it with the buyer rate if it is less than the buyer rate then it will be accepted otherwise not.

CONTROLLING

We the plan is accepted than according to due date every day PPC check that how much process is completed and how much time remaining will take. So process is checked at every stage.

　

Merchandising Department

I join the merchandising department and get the whole information and briefing about the merchandising department and its functions that are done under merchandising.

I learn about the basic functions of merchandising that how after the order of a buyer it works and what are the basic function like reading of spec sheet and other information about the specs.

PROTO SAMPLE AND COSTING

I learn that how to make a proto sample and how define the costing of that proto sample. After making a proto sample and costing merchandising department send the sample for approval.

FIT SAMPLE

After getting the information merchant made a fit sample and sends it to the buyer for the final approval. It is a core process and I today I learn about this process.

SALE SAMPLE

I learn about the process of sale sample the how this process is occur and one thing that is learning in it that the price of sale sample is doubled than the other garments. It is not the requirement of all the buyers but few buyers get the sale sample.

　

CONFIRMATION OF ORDER

I learn about that what happen after confirmation of order, after confirmation of order merchant demand to buyer to give accessories detail so that he can start the production.

SCHEDULE ABOUT TESTING

I learn that how get the schedule of testing the garments. Actually it is necessary to know about the schedule because after confirmation the order it is 1st requirement that have to fulfill first and after this bulk production is started.

SIZE SET AND PRODUCTION

Today I known that what is the importance of size set before stating the bulk production. Merchant made all sizes and gets the confirmation of all sizes from buyer then starts the next step.

These days I spent with the merchandiser that how he works when order is confirmed and how the whole process is completed. Actually it was a practical learning and no documentation was involved in these days

Issues and Suggestions

　

　

　

　

Suggestions and recommendations for knitting and dyeing

Ø There should be a preventive maintenance scheduled program.

Ø Effective maintenance is also important to get maximum utilization of machinery.

Ø In flat knitting department the quality inspection machine is not working. That should be repaired.

Ø Keeping high quality is not only the responsibility of quality department, but it should be embedded in each employees mind. Every employee should take it as personal responsibility.

Ø There is only one hydro machine in dyeing; it must be two .So the lot loaded on trolleys doesn’t have to wait for long time.

Ø There should be clearly written standard about the demand of buyers’ requirements about the production.

Ø Quality measures should be clearly defined, written and hang on the departmental walls.

Ø Raw material should be properly stored, because they’re hazardous if stored in knitting department.

Ø Common error of fluff, which is only due to the non-cleanliness of the production floor. And due to which a lot of quality problems are occurring which increase both the time and cost.

　

　

Issues and Suggestions, regarding production, planning and control:

The biggest draw back in the time and action plans of PPC in NAVEENA is that there is no contingency planning in advance it is a general rule that while planning production some cushion is given for activities such as machine break down or any other extraneous variables that can take place. The problem is addresses only when it occurs. There should be planning in advance for that in order to minimize the effects of a problem that has occurred.

Issues and Suggestions, regarding time and action plan:

The most common issue is of coordination Management Information System takes that lead to enormous losses at the end of the day. According to PPC personnel due to some Management Information System takes by merchants in providing production summary they end up making garment, which was not required at all. In order to avoid this kind of scenarios the merchants need to be absolutely sure what is required and the PPC personnel should clear any ambiguities before going for production and should recheck with the merchant the basic requirements.

Although there is a co-ordination manager present but still personal interest of all the departments is required in order to make the coordination free of any doubts. There should be clear lines of communication established between the departments. Every concerned person should know what is going on and what was required so that controlling should not only limit to the PPC department. From Knitting to Finishing every responsible person should have a clear idea what he needs his team to do.

Limitations:

Buyer due to the fact that the merchant cannot forward the purchase order gives Some times the co-ordination gap to PPC, as it is a secret. Only production summary is prepared and is given to PPC so if merchant makes a Management Information System take in interpreting the PO there is no way PPC can come to know about if there are any ambiguities in the production summary? Sometimes the merchant delays in forwarding information as it arrives to him resulting in delay to initiate the production process.

　

Conclusion

　

　

Form my experience of six weeks in this organization I have learnt many things. The most important is that practical professional life is very hectic, competitive and tough. The best thing, which I am able to find out, is that the stronger the culture of the organization better will be the productivity.

In textile sector the thing of immense importance is how well the organizational personnel communicate with each other. There is no room for personal grudges because each and every one depends on each other if any one screw up the whole organization suffers.

　

　

BIBLIOGRAPHY

· Company profile I got the information regarding vision statement, core values.

· SWOT information gets from Senior Managers.

· HRD information get form HR Officer.

· Export related data gather from Export Manager.

· Import related data gets from Import manager.

· Merchandising related data from merchandising manager.

· Process related data collect from different departmental heads.

GLOSSARY

GSM: Stands for Gram Square per meter.

MMC: Stands for material Management and Control

MPR: This means Material Procurement Requisition

MIR: This stand for Material Issue Requisition

GPR: This means Gate Pass Requisition

GRN: Stands for Goods Received Notes

BRS: Stands for Bank Reconciliation Statement

SAN: It means Sales Notes

OGP: Stands for Outward Gate Pass