INTRODUCTION TO TEXTILE INDUSTRY

Everyone in the world knows Pakistan as an agricultural country. Among all others, cotton is the major crop. This cotton, after processing takes various forms including yarn, fabric and other textile related products. The industry that is engaged in this area is much diversified in nature. There was a need of central platform that can assure a liaison between all the sectors of this industry. To cater the same need, All Pakistan Textile Mills Association (APTMA) was established in 1959. It was an untiring effort of its founders that resulted in a success and APTMA became a real representative of the whole textile sector of the country. Presently there are 419 registered members comprising of 322 spinning units,44 weaving units and 53 composite units. APTMA is the most important and resourceful association of the country. The textile industry contributes over 60 percent to Pakistan's exports, over 38 percent to employment and over 20 percent to value added production by manufacturing. Textile industry is the most important industry of Pakistan. It contributed 64% ($ 6.85 Billion approximate) of the total exports of Pakistan in 2003. It employed 38 % of the total employed population of Pakistan. Textiles industry contributed almost 10.50 to total Gross Domestic Product of Pakistan. 31% of the total investment relate of the textiles industry. Government earns Rs.1.1 Billion form textiles industry in shape of taxes. Knitting industry is one of the most growing industries in Pakistan. Knitwears are exported to all parts of the world. USA is the largest buyer of knitwears from Pakistan. India, Bangladesh, and some other countries are competitors of Pakistan in this industry. But Knitwear exports of our country are increasing day by day. In 1996 exports of knitwear were 50% more than 1990, which shows a growing sign of the industry. Companies like Levis, Nike, Target, Dockerss etc., are the major buyers of knitwear. Now why they are buying from third world countries the reason is that here it cost them less and they get the same quality. Thus if the cost factor can be controlled and quality can be maintained in the coming years, we can increase our knitwear exports several times and it can help to reduce our trade deficit. But Government should also help to increase exports.

Current Position & Future Prospects of the Textile Industry

From almost non-existence at the time of creation of Pakistan in 1947, the Textile industry has grown into the largest and most significant economic sector of Pakistan. The Textile Industry contributes over 60% to Pakistan's exports, over 38% to employment and 20% to Value-added production by manufacturing. This domination role of the Textile Sector in the Economy of Pakistan, for better or worse will continue till such time that other economic activities achieve significant growth and development. The Textile Industry will continue to play an important role in economy of Pakistan for the following reasons: Pakistan is one of the four largest cotton growers in the world. Availability of large quantity (around 10 million bales per annum) of reasonable quality is the basis of the development and sustenance of the local Textile Industry. Textile Industry is labor intensive. In Pakistan, the advantage of a large labor force with one of the lowest wages in the world. Textile production will continue to grow in the Developing Countries since the Developed Countries are giving it up in favor of more technology oriented and value added economic activities.

INTRODUCTION
CH. Nazir Ahamad established the Masood textile mills limited in 1984 after them now Ch. Shahid nazir is the chief executive of Masood textile mills limited. The Masood textile mill is established under the company ordinance 1984. The Masood textile Mills is listed in KSE in 1999. The company has latest equipment and machinery to serve globally. Masood Textile Mills is the only textile mill in Pakistan with latest computerized Barcode System that assures quality in every operation of production from spinning to packing. The company has modern computerized networking system. All the Accounting and finance relating work is carried out through computers. The company has capability in fabric dyeing; ginning, spinning, knitting, laundry and apparel Manufacturing. The Company's apparel division is producing high quality garments. Main products of Masood are Yarn, Fabric, and garments. They are leaders in creating, developing and manufacturing of knitted apparel products right from basic to highly fashioned garments thus responding to emerging trends in the industry. Some of its customers are Eagle, Hanes, Polo Jeans, JC Penny, and Champion. The company implemented the quality system and had awarded ISO 9002 certificate. Masood has the technology with expertise, products with knowledge and most importantly the right mindset to achieve total customer satisfaction. The company adopts standardized tests for quality assurance purpose. The company is exporting its products to U.S.A, U.K. and Germany.

HISTORY
Masood Textile Mills Limited was established in 1984 by Chaudary Nazir Ahmed. This is located 32 km Sheikupura road Faisalabad with its apparel Division located in center of city producing quality garments. MTM is working from 1995 with 75 sewing machines. In 1996 company management has made the plan to use his own production of yarn for producing value added products because of the slump in international and local yarn market. For implementation this plan company made heavy investment in 1997 for modernization and expansion of production facilities towards value added operations. For this purpose 6 dyeing machines were installed and further knitting dyeing and finishing machinery was being imported. Building was also constructed to install more stitching machines for producing value added products now in 2010 company has more than 1725 sewing machines. In 1998 company was earning 470 million rupees per annum which was increasing day by day. In 2009 it increases and earning raise to 6120 million rupees per annum. In starting they were using manual recording system of inventory, induction, raw material, salaries and vice versa. Now MTM is the only textile in the Pakistan with latest computerized bar code system, which assures quality in every operation from spinning to packing; products of each dept carry bar coded stickers which bear all the details and history of the operation of that product. Hence if any problem accurse one can trace back the root of the problem and enables to prevent the root cause of the problems in future. Besides this, Masood is one of the few textile mills of Pakistan which has in house Ginning, Spinning, Knitting, Fabric, Dyeing, Processing, Laundry and Apparel Manufacturing facilities.

Growth History

Largest Knitwear Exporting Company of the country for the Year 2003

Turn Over in Millions

Current position

Largest Knitwear Exporting Company of the country for the Year 2005

Turn Over in Millions

COMPANY INFORMATION

CHAIRMAN/CHIEF EXECUTIV OFFICER: DIRECTORS : : : : : :

MR. SHAHID NAZIR CH. MUHAMMAD AMIN CH. MUNIR AHMAD MR. FAZAL ELAHI MR. NASEER AHMAD SHAH MR. MUHAMMAD ARSHAD MR. MUAMMAD NAWAZ (Nominee-NIT) MR. MUHAMMAD FAROOQ MR. BINYAMIN MR. ABDUL BARI HAQQANI

DIRECTOR FINANCE CHIEF FINANCIAL OFFICER COMPANY SECRETARY AUDITORS

: : :

: Hameed Khan & Company (Chartered Accounts) : HABIB BANK LIMITED MUSLIM COMMERCIAL BANK UNIVERSAL HOUSE, WEST CANAL ROAD, FAROOQABAD, FAISALABAD. : 32-K.M SHEIKUPURA ROAD, FAISALABAD

BANKERS

REGIATERED OFFICE

MILLS

CUSTOMERS PROFILE

Masood is proud to work with the worlds best labels. This exposure to the brand labels has been a continuous learning experience for the entire team. Currently, 85% of production is exported to the U.S. while rest 15% to Europe.

Main customer's range of Masood Textile is.

1) JC Penny

2) Polo Ralph Lauren 3) Champion 4) Speedo 5) Hanes 6) Nautica 7) Integrity 8) Duck Head 9) Sara Lee 10) Vantage 11) Tommy Hilfiger 12) Levi Strauss 13) Dockers 14) St. Johns Bay

PRODUCTS OFFERED BY THE MTM

Products of Masood Textile Mills Ltd. Are cotton/synthetic, fiber, knitted/dyed fabrics and garments (Tops & Bottom). All the products are exported to USA, Germany, and various other countries. Major portion of yarn is used in manufacturing process and surplus is exported.

Yarn
Yarn is classified in two parts. 1. Cotton yarn 2. Poly cotton yarn/mix yarn

Fabric
This is also divided into two types: 1. Gray-Fabric 2. Other fabric i. ii. Bleached Fabric Printed Fabric

All fabric is knitted in tabular form but now the company is converting tabular form into open width to control the wastage of fabric.

Garments
Long Wear Active Wear Sleep Wear Athletic Sports Wear Under Wear

MTM has categorized these products in two main categories which are known as 1- Tops

2- Bottoms TOPS High Neck Mock Neck Polo Shirt T-Shirt V-Neck V-insert Raglon Shirt Rugby Shirt Hood Shirt Fill Zipper Hood Shirt Quarter Zipper Hood Shirt Mussel tee Tank Top

BOTTOMS Pant Short Boxer Boxer Brief Boxer Short Mid Rise

Our Vision
"Our vision is of continual improvement and sustained growth, and of a family of workers. Who are given the best compensation benefits and working conditions in the region. In this respect, MTM continues to emphasize the need to invest in and develop its most precious resource - its human capital. MTM continues to provide training courses and self-enhancement opportunities for all our workers''

Mission Statement
To be the Worlds best apparel company

Objectives:
Objectives of Masood Textile are. To provide market leadership and brand coverage To pursue technological innovation To reduce the cost of production To satisfy the customer To continue to surpass the past achievements To protect the environment according to ISO 14000 To get growth through Professional managers. To partner with operators for their maximum productivity To provide virtuous to our customers, employees, communities, and the

environment

Our Values
Respect for the individual, integrity, speed, simplicity, self-assuredness, and a 100% commitment, our values are non-negotiable; they are never to be jettisoned. For us, our values are our well-spring. To provide market leadership and brand coverage To pursue technological innovation To partner with operators for their maximum productivity To provide virtuous to our customers, employees, communities, and the

environment

COMPANY INFRASTRUCTURE

MTM Operations Divisions

Masood is one of the few fully vertical textile mills in Pakistan having in-house Yarn, Knitting, Fabric dyeing, Processing, and Laundry and Apparel Manufacturing facilities. The vertically integrated operations are helpful in achieving shorter lead times and greater flexibility to cater to the customers demand The detail of vertical operations of Masood is as follows: 1. Spinning 2. Knitting 3. Dyeing, Processing & Laundry 4. Apparel

1. Spinning
Masood has invested in growing and ginning of cotton. With the help of ginning process, Masood procure the raw cotton for the whole year. This helps Masood to provide the consistent quality products for customers through out the year. Spinning Division of Masood Textiles is capable of producing 25,000 lbs. of carded and 10,000 lbs. of combed Ring spun yarn every day (based on 20/s count). The division, equipped with most modern machinery from Japan, England and Switzerland, produces a vast range of yarn counts from 10/s to 40/s. To ensure consistent quality, spinning laboratory has been equipped with latest and most modern testing equipment. 60% of yarn production is exported to Hong Kong, Japan, Korea, Malaysia and Thailand. The rest of capacity is used for in house production of fabric, converted subsequently into apparel. Spinning function is performed through following steps: 1. Mixing 2. Blow room 3. Drawing 4. Combing

1.

Mixing

Maximum numbers of lots are mixed to get uniform results. Masood is using Sandwich mixing technique for stocking, which is a conventional method. 2. Blow room

Masood have a single line Toyoda O'Hara Hergeth Blow Room in operation. 3. Masood premises. 4. Combing Drawing

Combined machinery setup of TOYODA and latest model of RIETER is at function in

Lap formers of Toyoda Sk-4 and eight combers of Toyoda CM-10 are in operation at Masood. Strict quality and maintenance checks are followed at Top comb and cylinder for proven quality product

2. Knitting
To produce knitted fabric of supreme quality, it is impetrative that superior quality raw material is procured at competitive prices. At Masood finest quality yarn in the market is produced for our in house knitting. Fleece machine They have a Fleece machines for fleece fabrics with additional capability to produce heavy single jersey fabric as well. A variety of fabric such as plain, cross, sueded, textured fleece can be produced at versatile facility. They have "Vanguard supreme" Machines to knit body size fleece fabric and "Mayer & Cie" machines for open width fleece fabric.. Rib machines Another unit is for main Rib fabric while a few 8-locks machines are capable of manufacturing mini thermal and waffle. Additionally, they also have machines for Neck size ribs that help them producing consistent ribs for necks. Single jersey machines Single knit fabric is knitted on four track machines. These machines can produce fabric such as single jersey, P.Q, mesh, drop needle jersey, bird eye jersey etc. Masood also has Lycra attachment equipment for best fabric stretch recovery. Inter lock machines Drop needle and feeder stripe fabric are mostly produced on inter lock machines which have the capability to produce rib fabrics in addition to Interlock fabrics. Flat knitting machines Considering the importance of fabric accessories such as Collars, Cuffs, Waist band, Trims, Masood have a vast number of Matsuya flat knitting machines.

3. Processing
The Fabric Processing Division of Masood Textiles has a capacity of dyeing 41,450 kgs per day. It is capable of dyeing both 100% cotton and blended fabric. The machine size selection gives the flexibility in dyeing a lot size ranging from 100 kgs to 1,000 kgs. The department has two Santex finishing lines from Switzerland. Dyeing, Processing & Laundry They have dyeing machines for dyeing cotton fabric and a fully computerized high temperature jet-dyeing machine to dye all kinds of synthetic fabrics including polyester. A well equipped laboratory ensures all dyed fabric is properly checked, as per buyer's requirements, for factors such as shrinkage, color Finishing department at Masood, comprises of automatic hydro-extractors for the removal of moisture from dyed fabric, computerized tensionless dryers for instant fabric drying, soft-setting and calendaring machines for systematic soft-setting and rolling of fabric, fully computerized compaction machines for complete shrinkage control, and panel wash machines and tumble dryers for panel washing the fabric to give minimum shrinkage value.

4. Apparel
Masood believe that prevention is better than cure. During the process of stitching they have inline inspection and final inspection processes. Their objective is to produce with Zero Defects. The BACK TRACKING SYSTEM plays a vital role in developing sense of responsibility and accountability in every person in making and inspecting the garments. The company has independent Quality Assurance Team that conducts inline audits and final finished goods audits. The QA Manager ensures that before the goods leave the factory, they comply with the customer's AQL standard.

CUTTING
5 cutting units working under the supervision of skilled unit managers, these cutting units are well equipped with latest machinery including Gerber Plotter, Spreader etc. STITCHING With over 1,749 stitching machines, manned with the most skilled and expert operators, Masood is capable of producing about 120,000 dozens per month versatile garments ranging from basic to high fashion, men's, women's and kids with maximum flexibility in size and color assortments. The Quality control and Quality Assurance departments are in place to make sure the company's objective of zero defects. Computerized Bar coding and Back Track systems provide Masood 100% predictability and tracking performance. EMBROIDERY Latest Tajima embroidery machines, fully automated, 6 color 40 heads provide Masood the flexibility and capability to cater to the customer requirements.

Management Hierarchy CEO

GM

Senior Managers

Managers
Marketing Manager Production Manager

Deputy Managers
Merchandising Manager Q.A. Manager

Assistant Managers
HR. Manager Sr. Officers/ Unit Managers PPC Manager Management Trainees/Sr. Supervisors Inventory Manager Finance Manager

Departments of MTM:
A Masood textile mill is divided in to following departments. 1. Production Planning & Control Department. 2. Merchandizing Department. 3. Fabric Receiving Department. 4. Induction Department. 5. Stitching Department. 6. Quality Assurance Department. 7. Human Resource 8. Administration Department. 9. Information Technology Department. 10. Import department 11. Export department 12. Finance Department.

Production Planning and Control (PPC) Dept Chart

Production Manager

DPM

Cutting/Induction

Assistant Managers

Stitching

Unit Managers

Management Trainee

Production Planning and Control (PPC)

PPC department plays an indispensable role in any garment manufacturing company. Its responsibilities start from the negotiation between merchandiser and customer and ends on the shipment of PO. This department works on the basis of 3M's (Man, Machinery, and Material). It combines these three to get best result.
Responsibilities of PPC The responsibilities of PPC are as follows: 1. Costing 2. Production Capacities 3. Production Allocation 4. Monitoring According to Time Line 5. Control 6. Re-Planning

1. Costing This is the first and most important responsibility assigned to PPC. It is responsible for accurate costing of the production. The price of a single accessory can't be ignored. On the bases of cost, given by PPC, merchandiser negotiates with the customer. This is the crucial point in getting the purchase order (PO). The main things that are taken into account during costing and pricing of product are as follows, Fabric Cost (Yarn, Dyeing, and Knitting) Stitching Cost Packing and Accessory Cost Overhead Financial Charges Margin and Rejection

Freight on Board Prices (Here by freight on board prices we mean prices that include the cost of sending product on the ship or airplane) Costing Method Costing is done on three bases. Approximation. Judgment Calculation

During costing PPC has to take care that there will be no variation in cost during production.

2. Production Capacities It is the second responsibility of PPC to check the production capacities of Masood. Here by production capacity we mean two things firstly Capability. It means that the labor and machines at Masood are able or not to prepare the garment that customer requires. Secondly On Time Delivery. It means that we will handover the shipment as per contract. For this purpose PPC has to check these things: Fabric Production Capacity, Cutting and Stitch time, Vacant Labor and Machines for Processing the Order PPC has to provide these information's to the merchandiser so that he can negotiate with customer. 3. Production Allocation PPC fulfill this responsibility by making a schedule, which deals with when and from where fabric is received, when cutting is done, to which production unit order will be process, and so on. 4. Monitoring According to Time Line & Control All the processes being carried out are monitored according to preplanned timeline. Masood's AMS help PPC to monitor all the processes. in order to meet any uncertain situation safety margins are kept. PPC not only monitor all the processes but also control the pace of process in order to send shipment on time. 5. Re-Planning If any uncertain situation occurs, it is responsibility of PPC to re-plan in such a manner that it doesnt affect the shipment schedule. These uncertainty may arise due to fabric shortage, fault in any main machine etc.

PPC Profile A PPC profile is prepared which contains all the specification that has been demanded by customer and then is distributed to all the concerned departments in which the whole execution of the order is done. Following points are included in this profile. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Purchase Order and Style Number Buyer Name Description Quantity Color and Size Breakdown Time Line Cutting Program Size Chart and Cutting Design Packing Program Accessory Sheet Fabric Order Confirmation Sheets Action Calendar

For better understanding a sample profile is attached in the appendix.

Working
In apparel flow of work of stitching unit starts from issue lot from induction department and start stitching process. The workers in this department are on contractual basis as well salaried ones. Each unit normally works on the different brand and for the different customers. Chain flow technique is used in stitching units. Every worker performs a single function on all pieces and forwards it to next worker for further function. Until the piece is complete. After stitching the clipping function is done on the garments. All extra threads are removed in this function. After it the garments are pressed. Steam is used for this purpose.

After pressing the garments are forward for audit. In stitching unit following machines are used for garments making. 1. Flat Lock Machine. 2. Over Lock Machine 3. Lock Stick Machine 4. 2 NCS Machine. 5. Zig. Zag Machine. 6. Bar Taking Machine. 7. B/Sewing Machine 8. Snap Machine.

Merchandising / Marketing Department chart

Merchandising Manager

Sr. Merchandiser

Merchandiser

Assistant Merchandiser

Management Trainee

Merchandising / Marketing Department

In MTM marketing departments is very active. As MTM is a marketing oriented company so this department has to play a vital role in company. Basic objective of merchandising department is to take orders from existing customers and to attract new customers. And to satisfy the customers by quality products and timely deliveries.

Working
Following works are performed by this department .merchandising department by dividing it into seven steps, which are as follows: 1. 2. 3. 4. 5. 6. 7. 1. Handling Inquiry. Product Development Package. Price Negotiation. Sampling. Fabric Development. Pre Production Approvals. Bulk Production Monitoring and Follow up. Handling Inquiry

There are basically two types of customers, one are new, and others belong to portfolio of existing customers. It is the duty of merchandising department to tell the new customers what Masood is capable of and what it is producing.

2.

Product Development Package

Both the existing and new customers send product package. This product development package contains: a. Merchandising Specs. b. Measurement Specs. c. Color Standards. d. Fabric Swatches. e. Accessory Chart. f. Stitching and Packing Detail. g. Garment sketches. After receiving product development package merchandising department take initiatives to prepare samples. 3. Price Negotiation

They put the price with the submission of Proto Type Sample to the prospective customer. This price is negotiable. PPC Department calculates the exact costs associated with the production and thus enable merchandiser to determine what price should be charge. Price is determined on two bases. Either it is customer based or it is product based. Customer based pricing is done by keeping in view the market position of customer. The factors which, they take into consideration are brand popularity and the income level of ultimate buyer. Product based pricing is done according to the specifications of the product. Usually a fixed amount of margin is kept here. But to attract a new one or to retain an existing customer they can even charge him a price equal to cost.

4.

Sampling

After receiving the product package development Merchandiser prepares the proto sample. These samples may be send in any fabric and sends it to customer for approval. Lead-time of proto sample is 3 to 4 days. After proto type sample They sent the Color Stack Sample. This sample shows department understanding about the fabric. This sample includes all the required color. When prospective customer really takes interest in our product then he demands ADAR (Apparel Design for Apparel Review) Sample. These samples are kept as reference and use to compare it with final products. At this stage order is considered to be achieved but Order Confirmation Sheet is received from customer after we response positively to volume of production and the time frame given by customer in Bi-Sheet. After receiving order confirmation sheet, we start our preparation to produce in bulk quantity. PPC has prepared a complete time schedule of all activities 5. Fabric Development

When merchandising department receive product package development it will send S/O (Sample Order) to mills. If the required fabric is not available in the fabric library then Research & Development Department of mills start working on that fabric. If it is present in fabric library then the dates on which required machines are available, production starts. 6. Pre Production Approvals

Pre-Production samples sent to the customers for RTL Testing. This sample reflects the true picture of bulk production. When these samples are approved from customer then they start production at full scale. 7. Bulk Production and Follow up

The responsibility of merchandiser doesnt end at this stage; he has to continuously follow the process. Some time customers representative checks production to assure that

every thing is as per plan or not. Most tough time for merchandiser is when Auditor audits the shipment. When shipment is passed by customers auditor then Export Department has to send this shipment to customer. When customer received this shipment then the responsibilities of merchandiser comes to an end.

Stores
In apparel division of Masood textile there are three types of store 1. 2. 3. 1. Fabric store Fabric store Main store Shipment store

As it is evident from the name, that fabric received from Masood spinning and knitting mills, is stored here. The fabric is received in form of lots. The (out) gate pass issues to this fabric, when it exits from mills, serves as (in) gate pass in the apparel division. This gate pass has detail like lot number, weight, yarn count, number of rolls, color and order number for which the fabric will be used. After unloading, fabric is brought in the fabric store. Fabric store is a big hall with several three stories shelves. Each shelf has a number, customer name are also assigned if it is stored for a specific order. 2. Job Card Filling

After entering the store, fabric is weighted and a job card is filled. This job card contains all necessary information about fabric such as purchase order number, fabric quality, garment description, received dates, shelf numbers in which it will be stored before production. This job card helps in noting the process going on the lot of fabric. 3. Main Store

Here they store accessories used in production (e.g thread, twill tape, buttons etc.), administrational accessories (stationary, kitchen stock etc.) and accessories relating to transport vehicles. Simply we can say every thing except fabric is stored here.

4. Shipment store As it is evident from the name, purchase orders which are ready to be shipped, are store here. In Masood, when production of order is completed then it is packed in boxes and barcodes are pasted on them. These barcodes contain all necessary information regarding the contents of boxes. Final quality check of the shipment is done here. On the day of shipment the boxes are loaded on trucks and final entries are stored in computer.

Induction department
Induction department works as an intermediary and coordinator between cutting and production department. Process Flow Induction department receives the lot after complete check by quality assurance and quality control in cutting department. Job cards are posted after completion of check. They assign it a barcode issued by I.T department. They put the barcode number in the fabric bundles and keep these bundles in racks. Induction department maintains unit wise induction program on daily basis. This induction program includes following things: Unit No. P.O. No. Lot No. Issue Date Color Pieces

Remarks: It also prepares Daily Induction Report. This includes:

Hall No. Time P.O. No. Lot No. Sizes Total Pieces

Unit Incharge and Supervisor sign this report. These reports help in keeping record and facilitate the concerning departments.

Production Department
There are total 16 stitching units. Orders of different companies are processed in different units according to their skills. They operate under the objective of Zero Defect. Here, quality control is merged with production. In line supervisor are responsible for production of premium quality garments. A garment is packed after complete satisfaction about its quality, both from quality control and quality assurance officials.

Process
This production process is as follows: 1. Stitching (process flow) 2. Ironing 3. Finishing checks 4. Packing accessory attachment 5. Packing

1.

Stitching (process flow)

To get maximum production they follow the principle of Division of Labor and principle of convenience. Thats why process flow is used for stitching. The copy of process flow, which is attached in annexure, tells how a shirt is stitch (First moon over lock, then moon attach, then pocket hem, then pocket marking and so on). Here they attach the identification codes to the garments, which help in back track system. Quality, which is one of the core competencies of Masood, is maintained by 100% check from Inline supervisors. These Inline supervisors check the stitching and plucking, if there is any fault they try to remove it immediately. If we see the process flow attached we will find four inspections, at first inspection there is 100% check, at second there is 62% check, at third there is 64% check and at last which is inter inspection there is 34% check.

2.

Ironing

When stitching is complete these garments are ironed. This process is of great care because this may damage the fabric. This is done with the help of steam irons. Inline supervisors work doesnt end at stitching. They have to check any possible damage and the quality of ironing. 3. Finishing Check

After ironing finishing check is made. This includes three kinds of checks. a. Stain If there are any stains on garment and they are removable then they are washed with steam and chemicals. b. Raffu If there is any small hole then that garment is sent for raffu. c. Re Stitch If there is any skip stitch then that garment is sent for Re Stitch. 4. Packing Accessory Attachment

After final check packing accessories like company stickers, hang tags are attached. 5. Packing

Quality is preferred in all steps of Masoods working after stitching the garments, are forward for packing. No of laborer and inline inspector involve in this process for the proper packing of order according to the requirement of the customer.

QUALITY ASSURANCE DEPARTMENT

Quality Assurance Manager

Deputy Manager QA

Assistant Manager QA

Quality Assurance Officer

QA Auditors

QUALITY ASSURANCE DEPARTMENT

The main objective of the quality assurance departments is to ensure the quality of finished products according to the customers specification. Role of Quality Assurance Quality assurance departments first responsibility is to check the quality of finished products. For this purpose quality audit is conducted. In which the finished garments are checked according to customers P.O. Fabric. Quality, Color, Sizes, Accessories, Embroidery, Stitching Quality every thing is checked by Quality Assurance Department. If every thing is OK then the shipment is approval otherwise it is rejected. Because quality policy of MTM is to satisfy customer at every cost. While auditing finished goods Q.A Officer also checks the measurements of the garments and tallies them with standard measurements for the respective sizes. In final inspection the officer have a standard fault form. He checks the garment and fined faults. If the fault ratio is more then 2.5% he rejected the piece. In that form description of faults are mentioned. Q.A department ensures that 100 % quality is maintained. Beside quality audit Quality Assurance department evaluate the performance for the In-line inspectors and final inspectors. On these evaluations their pays and bonuses are allocated. The department also gives cash awards to best performers. And a quality trophy is also given to best unit.

HR Department

Human Resource Manager

Sr. Human Resource Officer

Human Recourse Executive

Management Trainee

Human Resource Department

The human resource is very strong in Masood. Like any other human resource department, the objective of this department is to maximize the efficiency and satisfaction of employees. They adopt al those practices which can hrlp them in achieving their goal Functions of HR Department Functions of the HR department in Masood Textile Mills can broadly be differentiated into these points: 1. 2. 3. 4. Recruitment Training and Development Compensation & Benefits Motivation

1.

Recruitment

The HR department does the recruitment. Recruitment is done basically for two classes. Class S is for labors and supervisory level while class M is for Management. For recruitment in both classes Job Analysis is done that where new vacancies can be arranged or where there occurs a vacancy for a job and what kind of qualified person is required for the job. Human Resource Department does Strategic Planning for new jobs in Masood. Jobs are normally announced after every six months. Selection is done in two ways. Number one is that Internal Sourcing is done according to the capability and performance of worker. External recruitment is done for the officers. For recruiting officers they take test and interview, and the succeed ones are appointed as Management Trainees. After a period of three months they are again evaluated the persons who qualified become the permanent members of Masoods Team. The workers are hired on trial. If there work is satisfactory then they are selected. HR department also keep the personnel record either the worker is a contractual or permanent worker. A profile of every worker is maintained in the computer based Human Resource Management System (HRMS). 2. Training and Development

Although it is the function of Human Resource Department but in Masood they have recently establish a separate Training & Development Department. The responsibility of this department is to train new employees and to develop a clear career path for the employees. This department also arranges training for employees who are promoted to next level. After providing complete training the work of this department doesnt end. They take feed back to evaluate the results of training. 3. Compensation and Benefits

The HR department carries out wage surveys. HR department checks pay and other legal benefits and benefits like overtime, bonus, leave encashment, gratuity, subsidized mess and vehicles are also under HR department. 4. Motivation and Performance Appraisal

HR department makes the performance appraisal and is responsible of giving increments or rewards to the workers. For creating motivation and competitive environment among the workers certain incentives are given: Cash prizes Trophy The best inline inspector receives a cash prize. To create a competition between workers a trophy is given to the best stitching hall on the criteria selected by the management, every month. O.35% of the P.O. is given to the best stitching hall. This 0.35% is distributed among all the personnel, belonging to different departments, for their contribution e.g respective merchandiser, PPC staff, Cutting persons etc.

ADMIN DEPARTMENT

Admin Manager

Transport Officer

House Keeper Officer.

Chief Security Officer

Administration Department
The activities performed by this department include: 1. 2. 3. 4. 5. 6. 1. Control of the admin. office Gate office Transport House keeping Utilities Security Gate office

This office is required to Gate office works under the administration department. They are required to submit the reports of all goods going out of the factory or which are received. The admin manager sings gate passes.
2. Transport

To control the facility of transport and maintenance of the transport of the transport vehicles is controlled by the admin department.
3. House Keeping

To arrange the facility of accommodation for the employees is also done by the administration department. The wear and tear of the factory building is also taken care by the admin department.

4.

Utilities

The utilities such as kitchen budget, electricity, maintenance of automobiles and the machines is also done by the administration department. Other responsibilities are like the civil kind i.e. sanitary, boiler, and carpenter for the repair of the furniture.
5. Security

Masood has a tight security system. There is an efficient security crew working in the Masood Textile Mills. The security is in the control of the security in charge who works under the admin manager. Security people check every employee coming in and going out of the factory for safety reasons.

I.T. Department Chart

EDP Manager

Deputy Managers Data Processing & Data Manager Assistant Managers WEB/E-mail

Officers

Web Developers

Information Technology Department

Information Technology department of Masood Textile Mills provides it a strong edge on its rivals. As an ordinary IT department in any organization its basic objective is to collect, interpret and summarize the factory data in an easily understandable form, but the way they manage makes them a core competence for Masood. Information Technology department of Masood has four main parts, they are as follow:

1. Data Base Administration 2. Network Administration 3. E-Commerce 4. Web Development

1. Data Base Administration

The working of Information Technology at Masood can be explained easily under following heads: 1. Information Technology application at Masood (H.R.M.S, G.M.S &A.M.S.) 2. LAN / WAN 3. E-Commerce / Website 4. Data Base Administration 1. Information Technology application at Masood

The applications of IT at Masood can be explained by understanding the management systems developed by IT Department. These management systems are as follows: I. Human Resource Management System (HRMS) II. Gate Management System (GMS) III. Employee Payroll System IV. Apparel Management System (AMS)

I.

Human Resource Management System H.R.M.S

Human resource management system which contains the data of all the personal. This is available for the upper management for taking numerous decisions. II. Employees Evaluation Form Evaluation History of the Employees Complaints against Employees. Department Wise Strength of Employees & Budget. Month Wise Employees Turnover. Reports about Employees. Gate Management System

Gate Management System is a program, which deals with the function of gate office. In this system following functions are performs. Employees In/out record and time. Visitors In/out record and time. Candidate Employees In/Out record and time. Temporary Employees In/out record and time.

Every employee of MTM has a card. Which he or she scans while In/Out. Its time is noted.There are certain reports about In/Out system preserve in GMS and are available for higher management.

III.

Employee Payroll System

Employees payroll system is design to generate employees salaries and benefit in computerized system this system performs on following ground. Generation of Employees Salary. Generation of Pay Slips. Salary History Employee. Gratuity Record. Leave Encashment Record.

This system makes easy the payment procedure and reduces corruption and increase efficiency. IV. Apparel Management System

This is very dynamic effort made by the IT department of MTM. They are maintaining the record of piece made by MTM up till now; every garment manufactured at MTM has a barcode no. Which is feed in AMS? And whenever is needed this no is fed and complete history of that garments is open. AMS works on following grounds. Complete backtrack of garment. On line status of a customers P.O. Worker Evaluation.

In line Inspectors and Final Inspectors Evaluation. Contractual Employees Wages Calculation and Financial Summary. Error Tractability in finished products. Reduction in fabric loses. Reduce duplication of work. Paperless environment. System Security. Unique ID tracking No. of each garments.

Back tracks from cotton crop type, yarn, knitting, fabric processing, cutting, stitching, inspection, packing and shipment.

3. Local Area Network/Wide Area Network

I. LAN
Masood Textiles Apparel Division has about 180 computers. These computers are interlinked via local area network. This network provides fast moving of required data and also facilitates Intranet facility within the company. All employees within the organization can easily communicate through it MTM has a hub, which provides LAN facility according to requirements of the system.

II. WAN
Masood Textile Mills (Apparel Division) is linked Masood Textile Mills (Fabric Division) which is 32 Km far from it. All computers of Apparel Division are linked to Fabric Division through a communication Tower. This system works like mobile phone system. Beside that MTM has its on ISP (Internet Service Providing facility). It has satellite Internet system. For this a satellite dish is installed at the factory. Every employee of MTM has free Internet facility.

3. E-Commerce

Masood Textile is working as a B to B company. It uses Internet for its negotiations and transactions with its customer. For on line transactions MTM use EC Vision Xexpression it is a software use for commerce. MTM negotiates all terms and conditions of product, size, color, P.O., item and transportation details through on-line. It also sends a copy of L.C. online and it use EDI electronic data interchange for it. Beside that MTM advertises its facilities of production, its customer portfolio and its achievements on-line. Recently MTM wins the best supplier award 2001-2002 from J.C Penny Company used different passwords for different customers to secure their identity.

4. Web Site
MTM has its web site named www.masoodtextilemills.com this web site contains complete history, profile, production facilities, workforce strength, job opportunities and customer order status of the company. www.masoodtextile.com is updated daily and latest company news is also shown on it. Recently Masood Textile launches its own e-mail services names ..

@masoodtextilemills.com. This facility is developed, managed and controlled through MTMs own IT Team. This facility is available for all the employees of MTM.

IMPORT DEPARTMENT
It imports two kinds of things: Sundries Dyes and chemical

I.

SUNDRIES

It includes the material which is used in production, as a minor part of the garments it includes: Buttons Labels V.M.T. -----> vender mark ticket Plastic pins Silver hand pins

These sundries are imported time by time and according to the demand forwarded by merchandiser. Usually the suppliers are nominated by the foreign buyers. So the import department forwards a purchase order about its required product. Then the suppliers send the Performa invoices in which prices are shown. Terms and conditions of transactions are set. The suppliers also seek for the approval of the Performa invoice. Then the import

department panels its L/C to supplier through banks and shipment is sailed. Sundries are usually shipped by courier service because this is speedy way.

II.

DYES AND CHEMICAL

Import department also imports the dyes and chemicals on regular basis. These dyes stuff are usually imported from India and China. In this case company contracts the indenters. He arranges the invoice per forma. If company agrees on invoice per forma, indenter opens L/C through bank. They import it usually by air instead of by sea, to avoid the botheration of inland transportation between Karachi and Faisalabad. The company has good strategy as regard to import dyes stuff. It imports every month about 10,000 Kg of dyes stuff and keep in reserve 1,000 Kg. of dyes to cover the period of consignment in transit.

EXPORT DEPARTMENT
The main objective of export department of Masood Textile is to facilitate the export process of the garments through negotiation with the banks and export promotion bureau. Function performs by export department are following: Export department negotiates with the banks for opening letter of credit. Export department deals with the preparation of bill of exchange. Export Department Deals with Shipping Company for Shipment Handling. Export department deals with shipment agents for transportation till Karachi. Export departments deal with negotiating banks, State Bank of Pakistan and Pakistan Custom for export procedures. Export department deals with EPB for quota matters.

Finance Department

Finance Manager

Deputy Managers Accounts Assistant Managers Finance

Accounts Officer Sales Tax Officer Finance Officer

Finance Department
Minimum input that give maximum out is the desire of this particular department. For this purpose financial analyst works over the opportunities in such a way that they get the main focused work (wealth maximization). MTMs financial administration is very strict in giving information. Company rules are very strict for it. Following are the main functions of finance department. Financial Management It deals with the cash inflows and outflows major cash inflows are following. Sales Collection Interest of Deposits Sales of Wastes Capital Gains Major sources of cash outflow are: Purchase of raw materials. Purchase of packing materials. Purchase of fuels. Wages, Salaries & Payments. Duties and Taxes. Major Banks of MTM are following. Habib Bank Ltd. (HBL) Muslim Commercial Bank Ltd. (MCB) The company invests its surplus money in investment banks, stocks and it gives shortterm loans to employees.

Book Keeping MTM has separate accounts division for book keeping. The main function of book keeping is to record the business transaction in a set of books of accounts. Daily Payments and receipts entries are recorded in original book of entries. Subsidiary ledgers are used to maintain debit and credit account. Main ledger is prepared for daily journal entries and monthly trial balance is drawn through it. At the end of the year annual accounts have been prepared.

Pay Roll In this section attendance record is maintained EPS (Employees Payroll System) prepare the pay according to company rules.

Work Done By Me Week 1

In Apparel unit of the Masood Textile Mills HR department is divided into 2 heads. Firstly is the HR M level and second is the HR S level. M level means the management level and S level means the supervisory level. Firstly I join the HR M level and in that department Deputy Secretary Ms. Humaira deals me. Here I observed that the main objective of this department is to maximize the efficiency and satisfaction of employees. In HR M level ranking of the managers starts from M6 to M1. Senior Manager Manager Deputy Manager Asst. Mgr Sr. Officer Mgmt. Trainee M1 M2 M3 M4 M5 M6

Recruitments of the employees start from the M6 level as a management trainee officer (MTO). After 6 months MTO following the carrier path promote in to Sr. officer and after 3 years Asst. Manager and vice versa. Salary Package of MTO is start from 16000 and after probationary period it increases to Rs.20000 and the salary package of the Asst. Manager is the Rs.30000 and vice versa. After M level I join the HR S level and in that department I met the Head of Department Mr. Naeem. In HR S level deals with non managerial employees. HR S level deals with the employees recruitments, salaries, leaves, bonuses, dismissing, and vice versa. In HR S level ranking of the employees starts from S4 to S1. Supervisor In Line Inspector Worker Helper S1 S2 S3 S4

Worker work on the bases of the per piece and the supervisor work on the salary and the salary of the S level start from 7000.

Functions of HR Department
Functions of the HR department in Masood Textile Mills S and M level are: Recruitment Training and Development Compensation & Benefits Motivation

Recruitment
The HR department does the recruitment. Recruitment is done basically for two classes. Class S is for labors and supervisory level while class M is for Management. Recruitment is being made in both classes after Job Analysis where new vacancies can be arranged or where there occurs a vacancy for a job and what kind of qualified person is required for the job. Human Resource Department does Strategic Planning for new jobs in Masood. Jobs are normally announced after every six months. Selection is done in two ways. First one is that Internal Sourcing is done according to the capability and performance of worker. External recruitment is done for the officers. For recruiting officers they take test and interview, and the succeed ones are appointed as Management Trainees. After a period of three months they are again evaluated the persons who qualified become the permanent members of Masoods Team. The workers are hired on trial. If there work is satisfactory then they are selected. HR department also keep the personnel record either the worker is a contractual or permanent worker. A profile of every worker is maintained in the computer based Human Resource Management System (HRMS).

Training and Development

They have established Training & Development DepartmentThe responsibility of this department is to train new employees and to develop a clear career path for the employees. This department also arranges training for employees who are promoted to next level. After providing complete training the work of this department doesnt end. They take feed back to evaluate the results of training.

Compensation and Benefits

The HR department carries out wage surveys. HR department checks pay and other legal benefits and benefits like overtime, bonus, leave encashment, gratuity, subsidized mess and vehicles are also under HR department.

Motivation and Performance Appraisal

HR department makes the performance appraisal and is responsible of giving increments or rewards to the workers. For creating motivation and competitive environment among the workers certain incentives are given: Cash prizes Other

Week 2 Production Department

According to schedule, my next department was production. Assistant Manager Mr. Mujahid Kamran briefly explained about the production. In Apparel unit of MTM 16 units are working from them14 units working in a simple system while 2 units which are the unit no. 5 and unit no. 16 working with modern machinery that is the ETON. Daily production is the 100000 units. This production process is as follows: Stitching (process flow) Ironing Finishing checks Packing accessory attachment Packing

Stitching (process flow)

They follow the principle of Division of Labor and principle of convenience they have specialized persons for every function. Thats why process flow is used for stitching tells how a shirt is stitch (First moon over lock, then moon attach, then pocket hem, then pocket marking and so on). Here they attach the identification codes to the garments, which help in back track system. For quality checking they have inline inspectors and Inline supervisors. If there is any fault they try to remove it immediately.

Ironing
When stitching is complete these garments are ironed. This process is of great care because this may damage the fabric. This is done with the help of steam irons. Inline

supervisors work doesnt end at stitching. They have to check any possible damage and the quality of ironing.

Finishing Check
After ironing finishing check is made. This includes three kinds of checks. a. Stain If there are any stains on garment and they are removable then they are washed with steam and chemicals. b. Raffu If there is any small hole then that garment is sent for raffu. c. Re Stitch If there is any skip stitch then that garment is sent for Re Stitch.

Packing Accessory Attachment

After final check packing accessories like company stickers, hang tags are attached.

Packing
In this stage garments are packed according to customers requirement. Inline supervisors check whether packing is as per requirement or not

Week 3
Production Planning & control department I worked in PPC department (Production Planning & control) the manager of PPC delivers a very important and interesting lecture. He not only delivers the lecture but also takes presentation individually and offers to all to come and sit with him for consultation of further detail. I got this opportunity and saw him many time to complete our report and for solving question which aroused in my mind. First day Asst. Manager gave briefing about the department. He told me that the primary responsibility of this department is to manage and run the production in an efficient and effective manner. To forward accurate and timely information to relevant departments is the objective of this department He explained the functions and procedure of this department. According to his statement, PPC department performs these functions like. MRP (Material requirement planning) CRP (Capacity Resource Planning) When an order is confirmed Merchandising forwards complete details about the style to PPC. I learned that how the plans are made for material required and how they monitored the consumption of material. A material required is further divided into Store Plan, and Cutting Plan. I got information about the production scheduling. Manager explained that at second stage, plans about the production scheduling are prepared. Date shipment, capacity of the unit and worker capacity are the factors, which they have to consider in production scheduling. I also learned how reports are prepared and forwarded to different departments.

MRP (Material requirement planning)

During my stay in MRP, I came to know that Assurance of the availability of right quality material at competitive cost for the timely production is the objective of this department. I also came to know that MRP works in collaboration with Imports, Purchase and Store departments. Manager named MRP is the mother department and all above-mentioned departments are working under its control. I got information about the planning for procurement. I saw that how the planning is taken place of each category of direct material and indirect material. Manager told me about the procedure of procurement. I came to know that quality of the yarn, production capacity; history and lead-time are the major considerations for yarn procurement. I got some knowledge about sundries (sundries are special type of material which includes buttons, zips, labels, tapes etc) and their process of imports. I came to know that to keep different, items in stock that are used in the production process or anywhere else in the factory is the main function of the store.

CRP (Capacity Resource Planning)

It is the second responsibility of PPC to check the production capacities of Masood. Here by production capacity we mean two things Capability It means that the labor and machines at Masood are able or not to prepare the garment that customer requires.

On Time Delivery It means that we will handover the shipment as per contract. For this purpose PPC has to check these things Fabric Production Capacity Cutting and Stitch time Vacant Labor and Machines for Processing the Order PPC has to provide this information to the merchandiser so that he can negotiate with customer. Production Allocation PPC fulfill this responsibility by making a schedule, which deals with when and from where fabric is received, when cutting is done, to which production unit order will be process, and so on. Monitoring According to Time Line & Control All the processes being carried out are monitored according to preplanned timeline. Masood's AMS help PPC to monitor all the processes. in order to meet any uncertain situation safety margins are kept. PPC not only monitor all the processes but also control the pace of process in order to send shipment on time.

Week 4
According to the schedule the next department which I join that is the Quality control department and in that department I met with the Deputy Manager Mr. Irfan and he told the quality about the MTM. How does Masood maintain Quality? Masood Textile has documented a quality manual that states the quality management system of the organization. Management establishes a documented quality plan setting out the specific quality practice, resources required and the sequence of activities relevant to particular product. Quality Control System at Masood There are quality checks at every stage of manufacturing starting from Raw Cotton, Yarn Fabric, Processing, Cutting, and Stitching & Packing. Before the fabric is cut, it is checked whether it conforms to the customers standards of shrinkage, finished g/cm 2 etc. After each lot of fabric is cut, 100% cut parts inspection is conducted to ensure that only good quality pieces move to the stitching units. During the process of sewing, each and every process is inspected by in line inspectors. The inspectors make sure that only good parts move to the next stage. An individual tracking number is sewn inside each garment. After trimming and pressing of the garments, each garment is inspected by highly experienced final inspectors. The Quality assurance team monitors the performance of every individual inspector b picking up the inspected garments and checking the quality of these garments. To ensure that the garments are packed as per the requirements of valued customers, they can even track & check, which ease the garments, has been packed in. With the help of this, they plan to achieve the Zero Defect Level.

Corrective and Preventative Action

Masood has a very strong corrective and preventative action plan. Masood has centralized the corrective action and controls the non-conformity arising in the system. If necessary the relevant person immediately takes the corrective action. For preventative action, the record is kept by the department head. Electronic records are kept by the Information Technology Department.

ISO & TQM

Masood has ISO 9002 certification and the registration # 99086699. We have the logo of three accreditation bodies ANSI RAB USA, UKS UK. DAR/TAG Germany and the audits were conducted by MOODY. ISO department provides a management system at Masood, which is free of nonconformance. The department has training system that creates awareness of Total Quality Management System (TQM). All the departments and people at all involved in this program. Masood has a team of qualified and certified auditor who would check, improve and ensure the consistency in the system. .

Week 5
The next department which I join that is the Merchandising and Marketing department and in that department I met with the Asst. Manager Mr. Shehbaz Jabbar and he told about the merchandising department it deals with the sales of the company locally and abroad. In comprises of four main departments I came to know that what is merchandising and its functions performed by a merchandiser which are Communicate with the buyer Develops product Sampling Set price of the product Pre Production Approvals

And also performs other numerous functions. They fill up the gap between the buyer and organization. Senior merchandiser also told the process of merchandising step by step and showed some documents and also explained the importance of this department.

Week 6 FINANCE & ACCOUNTS DEPARTMENT

The next department which I join that was finance and accounts it is an joint department finance as well as accounts .here I observed work under the supervision of head of department Mr.SAEED only secondary level of work is done in finance department of this apparel unit primary work is being done in head office. finance department works following functions which are Assessment of Financial needs Achievement of funds Allocation of funds. For achieving the above mentioned functions they divide work into different heads 1. Finance section 2. Costing section 3. Sales tax section 4. Store accounts 5. Internal audit

1. Finance section I came to know that finance department performs following functions which are Petty cash control Cash flow management

 Advances control

2. COSTING SECTION After this, I went to costing section where I met costing manager. He referred me to his assistant. Assistant told the major functions of costing section i.e. Preparation of financial results Quantitative analysis I came to know that work that work order costing; a sub type of batch costing is used at MASOOD TEXTILE MILLS LIMITED. I got information that section is responsible for the calculation f the cost of direct material used in the production process. Assistant also explained the overall flow of costing section and showed me flow chart

3. STORING SECTION In this section of Masood Textile Mills Limited the records of the main stores are maintained under the supervision of director operation. There are three stores in Masood Textile Mills Limited. 4. SALARY SECTION In this section of the department the salary for whole departments are prepared. This section is further subdivided in the following Garments salary Made up salary General Salary

The salary of the garment and made up are made on daily wages and the general salaries are made on monthly basis.

SWOT ANALYSIS
Strengths
Qualified Men Power They have a competent management. All managerial staff is qualified in specialized fields according to their job criteria. Full Fledged Operations In Masood all functions of production, performed like having in-house Yarn, Knitting, Fabric dyeing, Processing, and Laundry and Apparel Manufacturing facilities Serving Area They are serving their products to those customers who are very much conscious about quality like St. Johns Bay, JC Penny, Levi Strauss, and Hanes etc Current 85% of production is exported to the U.S. while rest 15% to Europe. Research & Development They have qualified researchers, and engineers with their efforts they are making innovations, colors of their products are numerous. Standards Certification & ISO 9002 Certificate They are follow international standards of production. The company has got ISO 9002 certificate which insure the quality standards. Bar Code System

Masood Textile Mills is the only textile mill in Pakistan with latest computerized Barcode System that assures quality in every operation of production from spinning to packing

Weaknesses
Separate units Due to space issues Masood have separate units for different functions which waste time and increases transportation cost. High Turnover of Employees: The turnover rate in the high, because the salary packages are relatively low as compared to other manufacturers and no good promotional opportunities so this leads to high turnover Centralized management The management at MTM is centralized. All type of decisions is made at top level. Due to centralized, delegation of power only managers have no authority to make decision. Old system in stitching In stitching in 14 units old system is being adopted, while in 2 units they have latest system which is very low. High cost of production The cost of production increased, such as material labor quota charges and other production accessories. Small international market share The MTM has small market share at international level. No motivated staff

The staff is not properly motivated due to lake of incentives and less wages offered by the company. Less promotional activities The company has very less promotional activities in local an international media.

Opportunities
Domestic market They are not selling their products locally they have an opportunity to capture the local market. Capturing the new market The company has very vast opportunities not only in Pakistan but also in foreign countries of capturing the market. The company has the opportunity to capture the markets of Saudi Arabia, Dubai, Qatar, Oman and other European countries. Acquisition of modern technology: The company at the current is using technology from Italy, Japan and Germany, but the company has the opportunity to acquire the modern technology from China which is cost effective and has efficient and effective performance, similarly modern technology from India can also be obtained Expanding Product Line: They can increase their production in sense of increase their product line if they will produce home accessories.

Threats
Political instability in country Political condition of the country is uncertain, govt. policies can disturb position of the company and certain rule and regulations are imposed by the govt. Economic instability The major threat for the company these days is the economic instability in the country exchange rate, monitory polices and fiscal polices are not suitable. Adverse government policies Government is changing import and export polices day by day which have adversely affects. High turn over As the turn over increase loyalty of workers decreases masood should avoid from this threat.

Bibliography
Books Reference:
Robbins, S.P. (2008) Essentials of Management, P 269 9th Edition Gitman, Lawrence. J. (2008) Principles of Managerial Finance, PP 58-70 11th Edition

Websites Reference: Web Sites http://www.google.com.pk http://www.wikipedia.com http://www.masoodtextilemills.com Company & Market Reference:
Ms. Humaira, Deputy Secretary HR, MTM Mr. Akram Zia, Deputy Manager PPC, MTM Mr. Saeed, Head of Department Finance, MTM Mr. Shehbaz, Marketing Head, MTM

Date and Time Visited 20.08.2010 at 22.08.2010 at 23.08.2010 at 5pm 6pm 10pm

Mr. Mujahid Kamran, Production Head, MTM

Glossary
A

ACS: Apparel Costing System

Appraisal: Estimate the Values or Qualities

Apparel: Clothing

APTMA: All Pakistan Textile Mills Associations

C
CSO: Chief Security Officer Comparative Statement: document for comparing rates of product

D
Diversification: vary, expand, and broaden Decision sheet: document for making the final decision for a purchase order Dozen: Unit of measurement

F
Fabric: Cloth

G
Globalization: to make global; esp., to organize or establish worldwide

I
ISO: International Standard of Organization ISP: Internet Service Providing

K
KSE: Karachi Stock Exchange

M
MTM: Masood Textile Mills is an investment partnership in which profit sharing terms are agreed

Musharaka:

in advance, and losses are pegged to the amount invested.

Murabaha:

is a form of credit which enables customers to make a purchase

without having to take out an interest bearing loan. The bank buys an item and then sells it on to the customer on a deferred basis.

P
Purchase requisition: A document showing purchase requirements Purchase Order: a document prepared to fulfill the purchase requirements

PPC: Production, Planning and Control

S
SRN: Store Receipt Note, It is prepared when goods are received at the store

T

TFCs:

A certificate of deposit with a maturity of one year or more

Tons: Unit of Measurement

TQM: Total Quality Management

Twill: A woven fabric showing diagonal lines

V
Vacant: Unoccupied

Y
Yarn: Thread

Annexure