Semester Project Presentation

MGT 301 Production and Operation Management

Aneeq Ahmed | Minaam William

Mohammad Ali Hashmi | Osama Hasan
ChE-01-A

School of Chemical and Materials Engineering (SCME)

National University of Sciences and Technology (NUST)
The Founder

Syed Babar Ali

A Chemical Engineer
and
an Entrepreneur

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 Packages Limited
• Established in 1956 as a joint venture between the Ali
Group of Pakistan and Akerlund and Rausing of
Sweden, Packages Limited provides premium packaging
solutions for exceptional value to individuals and
businesses.

• The only packaging facility in Pakistan offering a complete

range of packaging solutions including offset printed
cartons, shipping containers and flexible packaging
materials to individuals and businesses world-wide. 

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 Packages Limited
• Clientele includes illustrious names such as Unilever and
Pakistan Tobacco Company, who have been customers for
over 50 years. 

• Employs over 3000 people and had sales of over US $ 100

million in 2004.

• Listed on all three stock exchanges in Pakistan, it has has

maintained a long-time credit rating of AA.

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 Packages Limited
• Joint ventures and business alliances with some of the
world's biggest names reflect the forward-looking strategy
of continuously improving customer value through
improvements in productivity.

• Packages has always been at the forefront of new

developments in packaging research and has pioneered
several innovations, including the use of wheat straw as a
raw material for paper and board manufacture.

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 What Packages do?
MANUFACTURES AND SALES OF
• Paper (Writing Paper, Machine Glazed/Special Poster Paper,
Fluting Paper, Liner For Shipping Cartons, Corrugating Medium
Paper, Wood-free Writing/Printing Paper;)
• Paperboard (Carton Products , Corrugated Cartons)
• Packaging Materials (Packaging Films and Laminates )
• Consumer Products (Tissue Papers, Personal Hygiene Products)
• Finished and Semi-finished Inks
OFFERS
• Specialized Services (Rotogravure Printing and Sleeve-making)

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 Mission Statement
TO BE
... a market leader by providing quality products and superior
service to our customers, while learning from their feedback to set
even higher standards for our products.
... a company that continuously enhances its superior technological
competence to provide innovative solutions to cater to customer
needs.
... a company that attracts and retains outstanding people by creating
a culture that fosters openness and innovation, promotes individual
growth, and rewards initiative and performance.
... a company which combines its people, technology, management
systems, and market opportunities to achieve profitable growth
while providing fair returns to its shareholders.
... a company that endeavors to set the highest standards in
corporate ethics in serving the society.

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 Core Values
Smart
Ethical Governance
Behavior

Work
Environment

Customer
Satisfaction

Our People

Conservation

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 Corporate Structure
manufactures paper and board
from a mixture of wood, pulp
and other raw materials, and
treats effluent
Paper and Board

takes materials
from the Paper
and Board
Division and Consumer
Packaging
converts customer Products
ideas into finished
products

manufactures off-the-
shelf branded
consumer products 9
 Products
•Paper and Board
•Carton Business Unit
•Corruwal Business Unit
•Flexible Business Unit
•Consumer Products

Paper and Board Mill

Division
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 Paper and Board Unit
• Production capacities exceed 100,000 tonnes per annum, from four
main paper machines of different capabilities.
• These paper machines are supported by two pulp mills and a
chemical recovery and effluent treatment plant along with allied
support services.
• Packages Limited is among the first companies in the world to
manufacture paper & paper board using a pulp mixture of wheat
straw, kahi grass, cotton linter, recycled pulp and wood pulp.
• These environment-friendly processes use fewer chemicals, resulting
in improved strength properties and increased stacking strength of
containers.

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 Paper
PRODUCES
– high gloss writing paper
– machine glazed / special poster paper
– fluting paper
– liner for shipping cartons
– corrugating medium paper
– wood-free writing/printing paper

Paper quality and weight is determined by the

client's specific requirements and Packages
ensures this is carried out to the exact
specifications provided.

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 Board
Manufacture several types of board. Food Board, a basic raw material in
liquid food packaging, is being manufactured since 1979 for Tetra Pak
Pakistan Limited. This material is used in making aseptic packaging for
milk, cream, oil, fruit juices and other perishable food items. Some of our
board products are:

• liquid packaging board

• food grade board
• duplex board / chipboard
• bleached board
• tobacco board and cardboard
• liner board

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 Carton Board Unit
• The Carton Business Unit's technical competence is reflected through
two modes of printing: offset (for complex design) and rotogravure.
(for higher volumes)
• A new Lemanic rotogravure printing and inline cutting creasing
machine was also in the year 2000.
• New lines have been introduced with the addition of a Roland 700
double coater in the Offset Printing department, a Bobst Evoline in the
Cutting and Creasing and a Bobst Media 100 in the Folding and
Gluing departments.
• The state-of-the-art Roland 700 with twin coating has enabled
Packages to introduce innovative printing with special effect coating
and gold coatings.

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 Carton Business Unit
• Carton Business Unit production experts work closely with pre-
press and technical staff to deliver a durable, aesthetically pleasing
and technically sound package to the customer.
• The total board consumption of the carton line is around 18 - 20
thousand tonnes per annum. Clients include:
– Food and Beverages
– Soap / Detergent
– Pharmaceuticals
– Match
– Electronics
– Shoe
– Tobacco
– Paper Cup

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 Corruwal Business Unit
• TECHNICAL EXPERTISE
Our corrugated finishing division can print in up to three colors.
Customers have the flexibility to choose from regular slotted
containers (RSC), glued, RSC stitched or die cut cartons.

• PRODUCT DEVELOPMENT
After customer feedback and extensive research, Packages has
developed special liner and fluting that gives extra strength to
containers, in particular increasing their stacking strength and their
resistance to bursting.

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 Corruwal Business Unit
• Packages has been manufacturing corrugated cartons since 1974.
Produced in a variety of sizes, these cartons are of great value for in-
country goods distribution and export. Capacity increase and
product development continue to be of high priority.
• Corrugated cartons are of great value to our diverse portfolio of
customers for secure transportation of their products to local and
international markets. With the commissioning of our corrugated
plant in Karachi, we have the capability of producing seven million
corrugated cartons to cater to the ever-increasing demand of high
quality shipping cartons.
– Textile
– Food
– Tobacco
– Soap
– Detergent

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 Flexible Business Unit
• With improved barrier properties and lower cost compared to rigid
packaging, flexible packaging is steadily gaining importance in the
packaging industry. Our flexible line makes high quality packaging
films and laminates, and offers other specialized services such as
rotogravure printing and sleeve-making.
• Flexible packaging combines different plastic films, aluminum foil
and paper to produce laminates of two or more layers for providing
layered protection against moisture, gases and odours. Used where
colorful package design and preserving product quality are
important, such as in the food and pharmaceutical industries,
flexographic printing offers economy with quality.

Soap Diary Shampoo

Tobacco Ice-Cream Pesticide
Tea Milk powder Pharmaceutical
Food Confectionery
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 Consumer Products
A range of products for those annoying problems in life: our consumer
products feature great ideas for making everyday living easier and
more comfortable, both indoors and out. 
–     Tissue Products
–     Personal Hygiene
–     Paper Products
Reflecting our core values of exceeding customer expectations through
innovation, leadership and teamwork, the Rose Petal and Tulip
brands continue to hold over 80% of the domestic market share of the
tissue paper market in Pakistan. We also have a leading market share in
the away-from-home business: we supply custom-printed boxes, table
napkins, coasters and paper cups to institutions such as hotels, fast food
chains, restaurants, businesses and the airline industry

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Production and Operation Management
AREAS IN FOCUS
–Location, Design and Layout
–Quality
–Inventory Management
–Customer Satisfaction
–Environmental Policy

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Location, Design and Layout
Packages was established in 1956. Lahore was then selected as the site
due to three major reasons:
•Easy availability of workers
•Easy availability of raw materials
•Easy transportation all over the country
The site continued to serve the objective for more than five decades, but
due to population density in vicinity, the paper mill has now been
shifted to a rural area near Qasur.

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Location, Design and Layout
• Corrugating Unit has been
shifted to Korangi Industrial
Area, Karachi to reduce the
transportation expenses.
• The current plant site at
Shahrah-e-Roomi, was such
planned that it continued to
serve the objective for over
five decades
• Buffer regions were left,
and buildings were mostly
ground / first floors.

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Location, Design and Layout

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Location, Design and Layout

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 Quality Policy

Total Productive Maintenance Pillars at Packages Entrance

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 Quality Policy
We at Packages Limited are committed to producing quality products
which conform to our customer requirements and strengthen our
position as a quality-managed company.
Our pledge is to provide the market with the best quality products at
competitive prices through a customer-driven and service-oriented,
dynamic management team.
To meet this obligation, the company will continue updating skills of its
employees by training, acquisition of new technology, and regular re-
evaluation of its quality control and assurance systems.
Appropriate resources of the company will be directed towards
achieving the quality goals through employee participation.

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 Quality Highlights
• Complies with the ISO 9001 standard
• 6th company in Pakistan to adopt the ISO series as its quality
standard
• Maintains 57 Quality Improvement Teams in various
departments to ensure continuous improvement focus in the
organization
• Nurture Key performance indicators (KPI) concept: Each
division in the company sets SMART (specific, measurable,
achievable, recordable and time-based) targets for the annual
improvement of its key process parameters, reviewed by the
management every quarter
• Maintain a comprehensive set of engineering tools, rules,
processes, training materials, guidelines, best practices and other
supporting documents to make sure our products comply with
every possible customer requirement.

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 Maintaining Quality
• Quality Assurance (QA); the pro-active approach to avoid
reoccurrence of problem in future.

• Quality Control (QC); the reactive approach to the damage borne.

• Correction; Reject clients undesired objects – Expensive

• Corrective Action; Laboratory Tests, Quality Audits

• Preventive Action; QA, Planning to avoid future rejects

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Quality Assurance Department
• Customer Satisfaction in Terms of Quality – process inspection
from raw materials to consumer
• Trainings for Management and Staff – measure of dispersion,
central tendency, standard deviations, defect matrix, bandwidths
etc
• Quality Inspections Laboratories – 6 labs, each at the end of
each production cycle, certifies or declines the product clearance to
market
• Supplies Quality Assurance – verification of ‘certificate of
analysis’ by the supplier about particular order
• Quality Improvement Projects (QIPs) – quality circles with
members from QA, Inventory and Supply Chain
• Quality Conferences – Kaizen Conference (Japanese:
Continuous Improvement) monitory awards for quality work;
Productivity Conference recognition for yearly performance
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Quality Assurance Department
QA Lab at Paper and
Board Mill Area

Gloss Test for Card Sheet

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 Inventory Management
• Packages maintains her inventory under the auspices of Supply-
Chain Department
• ISO 90001 and 14001 are implemented
• FIFO (First In, First Out) is the order
• Stocks are managed through SAP (System Application Procedure)
• Materials dealt include: raw materials, spare parts, production
supplies and general items
• A demand is generated when requisition is made by any stake
holder, followed by a computerized stock-check leading to issue or
purchase order
• Lead time is 3 – 4 months for imported materials i.e. mostly
production supplies / raw materials, 30 – 45 days for local items

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 Inventory Management
• 1000 – 1500 general items are termed as store items and re-
ordered by inventory
• Corporate target is min 45 days inventory
• Materials are inspected on delivery from vendor. In case of quality
rejection, returned to local market; for international suppliers,
rebate is collected and items are sold out in local market
• In case of undesirable delay for consumption of material and high
probability of expiry, it is also auctioned in local markets
• GIR (Good Issuance Recognition) and GRN (Goods Receipt
Note) are implemented to for timely acknowledgement of issuance
and receiving
• Inventory is kept at desired conditions of temperature and
humidity to ensure safe storage.

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 Inventory Management
• Fork Lifter are used for movement of inventory
• Total raw materials inventory is about 1200 – 1300 million Rs.

Chemical Store at
Packages Limited

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 Customer Satisfaction
SERVICE AFTER THE SALE
• Customer Services Department (CSD) follows new orders from
pre-press up to final delivery to make sure product exceeds customer
expectations.
• CSD arranges development activities and provides comprehensive
technical and after-sales support to customers.
• Customer complaints are followed by proper feedback and
management reporting that is why customers are given due attention
and the essential quick response all the time.
• To strengthen the supply chain, Vendor Managed Inventory (VMI)
facility is provided to key customers.
• Stocks are maintained and delivers on short notice according to
customer requirements.

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 Customer Satisfaction
PRE-PRESS (ART AND DESIGN)
• The department makes designs for all types of
packaging (cartons, flexible packaging and corrugated
containers).
• A team of dedicated artists first creates the artwork,
which is then transferred to the cylinder and plate-
making department.
• The Art and Design department has been completely
revolutionized over the last 15 years: output from
design is digitally transferred to plates and cylinders
so that there is no loss in data.
• A unique color management system ensures the
accuracy the designs as they will appear on the
finished product. 

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 Customer Satisfaction
RESEARCH & DEVELOPMENT
• Company constantly explores and develop usage of new fibers,
films, chemicals, adhesives, coatings and resins.
• With well-equipped laboratories and research resources at their
disposal, it has been a happening place in the area of research.
• Research and Development (R & D) department is committed to
develops new products that service changing consumer needs, while
evaluating and improving raw materials to reduce costs and increase
efficiency.
• Laboratory simulation of papermaking operations, chemical
testing and analysis, comprehensive testing of paperboard and its
products and other research and development facilities are provided.

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 Environmental Policy
ENVIRONMENT, HEALTH AND SAFETY (EH&S)
POLICY
Packages Limited through it decisions constantly tries to :

• Minimize its environmental impact, as is economically and

practically possible
• Save raw materials including energy and water, avoid waste
• Ensure that all its present and future activities are conducted safely,
without endangering the health of its employees, its customers and
the public

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 Environmental Policy
ENVIRONMENT, HEALTH AND SAFETY (EH&S)
POLICY
• Develop plans and procedures and provide resources to successfully
implement this policy and for dealing effectively with any
emergency
• Provide environmental, health and safety training to all employees
and other relevant persons to enable them to carry out their duties
safely without causing harm to themselves, to other individuals and
to environment
• Ensure that all its activities comply with national environmental,
health and safety regulations
• This policy shall be reviewed as and when required for betterment
of the same.
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 Environmental Policy
PAPER RECYCLING
• Packages has the capability of producing 100% recycled paper.
• Various grades of paper and board (shipping, cartons, newsprint,
magazines, imported waste paper) are collected and then shredded.
• This is fed to a huge mixer where a controlled percentage of virgin
pulp and used paper are mixed together to produce material for
recycled paper.

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 Environmental Policy
Effluent And Waste Management
• Discharged water from the paper and board mill goes to a septic
tank where heavy, insoluble material settles down and is constantly
scooped out.
• Specialized cleaning equipment removes the residual sludge and
suspended particles. The suspended solids are separated and treated
on sludge de-watering equipment and thickened for disposal.

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 Environmental Policy
Effluent And Waste Management
• The introduction of the new method of using wheat straw as a raw
material was a bold step partly aimed at reducing the chemical load
of the effluent.
• An even bolder step was taken with the import of Chemical
Recovery Plant in 1997.
• Black liquor, which poses severe difficulties in the effluent
treatment system in any pulp mill, is concentrated in this plant to
58% solids and then incinerated in a waste heat boiler, where
organic impurities are destroyed and the steam generated is utilized
for evaporating the incoming liquor.
• The ash, containing inorganic compounds, is dissolved in water to
recover any available chemicals.

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 Environmental Policy
WATER MANAGEMENT
• This is a recent part of the green policy adopted by Packages. It
includes reduction of the usage of water in all stages of its
processes. Better water management has led to better utilization of
water and other raw inputs.
• At 300 tonnes per tonne of pulp produced, the quantity of water
itself poses serious problems of extraction and disposal.
• To reduce it, a dissolved air flocculation system and special filters
have been added to different streams of reusable water and wherever
possible, fresh water in various processes has gradually been
replaced with this water.

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 Environmental Policy
INDEPENDENT ENERGY HOUSE
• Packages is self-sufficient in its power generation capabilities with
an installed capacity of 26 MW. A local boiler meets the company's
steam demands.

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 Environmental Policy
RESULTS
• These efforts were streamlined in 1997 through the formation of a
committee of internal experts to look regularly into issues
concerning environment, health and safety.
• The committee is currently involved in the management of fresh
water use, effluent management, control on air emissions, energy
conservation and maintenance of health and safety standards in the
company.
• It uses guidelines provided by the National Environment Quality
Standards (NEQS) as a benchmark, even modifying processes to
conform to its objectives.

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 Environmental Policy
RESULTS
• As a result of combined efforts, the quantity of water used, as well
as its BOD and COD has been reduced significantly.
• Steam consumption and heat energy consumption in 2003 have
both shown a reduction of over 16% each compared to 1999. The
electricity use in the same period has gone down by an impressive
25%.
• These activities have acquired such importance for the company that
out of US$ 100 million spent on new processes and technology in
the last few years, 20% were spent on environmental issues alone.

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 Before we end,
A very special thanks to
Mr. Muhammad Akram
Manager Industrial Relations

Hassan Asif
Manager Quality Assurance

Shahzad Murtaza
In charge Stores and Inventory Department

Saliha Akram
NUST Institute of Environmental Science and Engineering (IESE)

Prof. Dr. Nawar Khan

NUST College of Electrical and Mechanical Engineering (EME)

and not to be forgotten 46

You
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