Internship Report

MASOOD TEXTILE MILLS LIMITED

SUMITTED TO:

HUMAN RESOURCE MANAGER

PREPARED BY: AHSAN MUSHTAQ MUBEEN ARSHAD MUHAMMAD WAQAS AHMAD NAUMAN SALEEM ZAHID LATIF

(GROUP # 5)

THE ISLAMIA UNIVERSITY OF BAHAWALPUR

RAHIM YAR KHAN CAMPUS
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Preface
It is the age of information & competition. The scientific advancement has made the life more dynamic & competitive worldwide. So one must have practical knowledge and trained enough to live successfully in present competitive situation because it is becoming difficult to survive without creating changes & adapting ourselves according to these changes. The students of MBA receive knowledge during their study, has completely theoretical base. Their ideas remain unsaturated, unless students do not have any practical experience. So to provide the students an extensive exposure of practical business aspects, department of business management sciences arrange a compulsory 6 weeks internship program, for all of its MBA students, in a wellknown organization. This thing enables the young business executives to familiarize with professional business approach. To enhance their writing skill, the students are also required to make the written presentation of their experiences during internship program. Masood Textile Mills Ltd. (Apparel Division) a leading organization in Garment sector was assigned to me for internship. This report is about my experience & knowledge, which I have gained during my internship program. In this report I have made a humble attempt to express most efficiently and effectively what I experienced & observed at Masood Textile Mills (Apparel Division). I think that this report will be really helpful for those who want to know about Masood Textile Mills Limited (Apparel Division) Faisalabad.

ACKNOWLEDGEMENT
First of all we thanks Allah for whom our all praises are for Him. Then we thank our university who send us for internship program with intent to have a great knowledge and experience in Masood Textile Mills Limited. Our most respect for human resource department in Masood Textile Mills Limited who gave us chance to work for best of our skills. We especially thanks to Miss Uzma Meraj, Mr. Naeem, Mr. Tahir coordinator of internship program. We also thanks to all the respective department managers like Mr. Belal (HR Dept.) Mr. Kumar (QA Dept.)` Mr. Irfan Mr.Tayyab (Forwarding Dept.) Mr. Farooq (Costing) Mr. Abbas Miss Hina Mr. Zulfqar (MRP Dept.) Mr. Irfan. (Production Dept.) Mr. Sajjad.. (PPC Dept.) Now our thanks to Mr. Mahboob A. Shah Director Rahim Yar Khan Campus, Mr. Tariq javed Incharge Internship program and Mam. Nomeeta Zainab Sultan Deputy Director Rahim yar Khan Campus.

Dedication

We dedicate our all efforts to my affectionate, loving and kind parents, Teachers, Friends whose spiritual inspiration helped us in all the path of lives. And also the effort is dedicated to Human Resource Manager of the Masood Textile Mills (Apparel Division) and all the relevant department Managers who helped us in all the duties which are assigned to us.

Sr. #

Description 1 2 3 4 5 6 7 8 9 10 11 12 13 Preface Acknowledgements Executive Summary Introduction of Organization Mission, vision and objectives of organization Organizational structure Working of various Division/ Departments Sales and employees volume Financial analysis SWOT analysis Suggestions and recommendations Conclusion Glossary

Executive summary
The facts and figures of Masood Textile mill (Garments and Head office) make base of this report. MTM, having state-of-the-art technology have its own spinning, knitting, processing, stitching and finishing Divisions. The establishment of MTM in 1984 was in the shape of spinning mill, later on in 1994 its activities expanded to worldwide popular garments business. Mr. Shaid Nazir is the sole proprietor and CEO of MTM. Yarn, Fabrics and apparels are the famous products of MTM. MTM worldwide renowned customers are Sears, JC Penny, Nautica, Dockers and Vantage. Eighty-five (85) % of the products are exported to USA and 15 % to Europe. Fashion garments like Polo, Rugby and Henley shirts along with basic garments like Crew Neck Tee, Sweat shirt, Boxer shorts and Bikinis are produced almost 120,000 dozens per month. In-house embroidery facility is available and equipped .with Tajima machine Professionals including two hundred MBAs are part of the team who actively show the skills in true spirits that gave such heights to this mill. Textile engineers and Industrial engineers are the others whose .contribution cannot be questioned Masood Textile Mill feels pride for the achievement of its staff in shape of achieving WRAP and ISO 9002 CERTIFICATION. The latest computerized Barocade system of MTM that assures quality in every operation of production from spinning to packing make it unique .and the only mill in Pakistan with such state of the art technology

Bar codes are fixed on every product that assures to be traced back to the first stage and can be used to find out the root cause of .shortcoming in the process Having in-house Yarn, Knitting, Fabric dyeing, Processing, and Laundry and Apparel Manufacturing facilities make MTM a fully .vertical mill The turn over of 55.83 million dollar in year 2004 depict its very .profiting venture For constant exploration of quality products the R & D department is very aggressively performing. They work hard to achieve TQM in order to full fill their vision statement of To be the worlds best .apparel company

INTRODUCTION OF ORGANIZATION
MTM(apparel division) is a SBU of Masood group.Masood group was founded by Mr.Ch Nazir Ahmad father of Mr.Shahid Nazir.Kohistan bus service was the first professional step by Ch.Nazir Ahmad .After wards dreamland hotel,sangeet cenima and aizad beverages were established in 1978 and 1983 respectively.Mr.Shahid Nazir and Mr.Zahid Nazir helps his father by the formation of industrial cooperative bank along with the development of Rabia trust hospital.kakakhel Ghee mills and a flying training school were .founded in 1994 MTM Apparel Division was established by Mr. Shahid Nazir (CEO) in 1995. It is located on Sargodha road Faisalabad. MTM is one of the largest knitted garment manufacturers of Pakistan. Masood is a 100% export oriented company the major markets of MTM are USA and Euorpe. Quality is the core competency of MTM. It is a ISO 9002 certified company, it also having certifications of WRAP (Worldwide Responsible for Apparel Production), JC-Penny (Operational Excelence Award 2003) and Russel Corporation .((Global Quality Recognition 2003

Vertical line of Operation

:The details of vertical operations of Masood are as follows

Spinning Knitting Dyeing, Processing & Laundry Stitching Embroidery

Spinning

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

Yarn
MTM Spinning is capable of producing more than 35,000 lbs of Combed & Carded ring spun yarn from 6/s to 40/s count. Spinning is equipped with state of the art machines from Japan, UK and Switzerland. MTM yarn is famous for its consistent quality because of stringent QC system and most modern lab equipments.

Knitting
Knitting Department has 16 machines capable of making Jersey, Pique, and Fleece, Interlock and Rib in addition to the mini jacquard designs of single knit jersey. The gauge ranges from 20 to 28 for single knit, 20 to 24 for Interlock and 15 for Rib machines. Most of the machines are equipped with Lycra attachment. Moreover, it has 9 flat bed machines for collar and armband making. 100% production is inspected and only A
.grade fabric is transferred to the subsequent operations

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Fabric
One of the largest Fabric facility in Pakistan having the capability to produce all kinds of knitted fabrics in 100% cotton & blends.

Single knit Single Jersey Pique Fleece

Flat knit Collar & Cuffs Flat Knit Panels

Strippers Feed Striper Auto Striper Engineered Striper

Double knit 1x1 Rib Variegated Rib Interlock

Textures Herring Bones Pique Jersey

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Waffles

Jacquards Mini Jacquard

Dyeing, Processing & Laundry

The Processing Department has an installed capacity of dyeing 140 Tons per week. Equipped with these dyeing machines from Germany, it is capable of dyeing both 100 % cotton and Polycotton blended fabrics. The machine size selection provides
.flexibility in dye lot size ranging from 100 Kgs to 1,000 Kgs

The department has three Santex finishing lines from Switzerland including hydro extractors, dryers and compactors for tubular as well as open width fabrics. Moreover state of the art sueding equipment makes Masood capable of adding value to the delicate knit fabrics. A separate testing Laboratory with latest equipment is in place to ensure that the processed fabric quality is maintained to meet the required parameters of our buyers

Cutting department
Cutting is the first step in production. Here, fabric is cut according to the customers specification. The main objective or aim of this department is to minimize the wastage of fabric. Now they use Gerber Plotter which is new technology to maximize the use of
.fabric

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. (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 overlock, 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 massood, 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

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Garments
mTm is a leading apparel company in Pakistan having expertise & machinery capable of transforming customer ideas into superior quality garments, which are taken as the most famous brands in the world.

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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

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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

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MISSION STATEMENT

Our mission is to be a dynamic, profitable and growth oriented company by providing good return on investment to its shareholders and investors, quality products to its customers, a secured and friendly environment place of work to its employees and to project Pakistans .image in the international market

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;Company 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 selfenhancement opportunities for all our workers".

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;CORPORATE OBJECTIVES
1. 2. 3. 4. 5. 6. level. 7. 8. 9. 10. To control the atmosphere by installation of To continue to improve/ surpass past latest machinery. achievement. To lead the local manufactures. To attain a good word of mouth and to make Maximization of wealth of shareholders. To increase market share. To achieve customer satisfaction. Making arrangements towards achieving total To get growth through professional

quality standards. management. To reduce the cost of production up to minimum

company image stronger in the international market.

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Organizational Structure:
Main Offices: Head Office
Universal house, west canal Road Faisalabad - Pakistan. Ph Fax : : +92 41 8734910 +92 41 8731180

Mills (Yarn & Fabric Division)

32 K.M. Sheikhupura Road, Faisalabad - Pakistan. Ph Fax : : +92 41 4689470 +92 41 4689469

Garments
Sargodha Road, Near Police Station, Faisalabad Pakistan. Ph Fax : : +92 41 8787931-34 +92 41 8781361

Lahore Office
16/3A, Eden Homes, Main Gulberg , Lahore Pakistan. Ph Fax : : +92 42 5753620 +92 42 5753629

Karachi Office
1-C, 13th Commercial Street, Phase 2, DHA. Karachi Pakistan. Ph Fax : : +92 21 5800583 +92 21 5800584

Comments on the Organization Structure:

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Masood Textile established in 1994. Founder of the Masood Group is Ch. Nazir Ahmad (late). MTM was a private organization in start. In 1999 Masood Textile turned from a private company to a public limited company and listed in KSE. Masood Textile strive to lead in creating, developing and manufacturing of knitted apparel products right from basic to highly fashioned garments thus responding to emerging trends in the industry. They translate conceptual ideas of our customers into reality and shape them through its technical bent and professional acumen. The team here strongly believes that Customer satisfaction is the essence of business today. mTm has the technology with expertise, products the with right knowledge mindset and to most achieve importantly total

customer satisfaction.

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DEPARTMENTS/WORKING OF VARIOUS DIVISIONS

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 help them in achieving their goal

Functions of HR Department
Functions of the HR department in Masood Textile Mills can
:broadly be differentiated into these points

1. 2. 3. 4.

Recruitment Training and Development Compensation & Benefits Motivation

Recruitment

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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

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

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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

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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 .1 2. 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

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Administration Department
:The activities performed by this department include

1. 2. 3. 4. 5. 6.

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

Transport
To control the facility of transport and maintenance of the transport of the transport vehicles is controlled by the admin
.department

House Keeping
To arrange the facility of accommodation for the employees is also done by the administration department. The wear and tear

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of the factory building is also taken care by the admin department

.

Utilitie
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

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

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Merchandising department
Marketing manager who directly report to the general manager control the marketing department. The major responsibility of this department is to access the customers needs and wants and set the products according to the customers satisfaction. Products distribution and promotion are also the part of this department. This department plans for future market and maintain strategies for existing markets. This department remains always in struggle for attracting new customers. The merchandising department .works in the following manner

Receive development sheet from production planning and control Pricing from concerned department. Development of new inquires. Proto/pattern development. Fabric development Lab dips development Salesman sample if required Size set in original fabric & color Pre production approval Imported accessories follow up Complete follow up & monitoring of purchase order start from yarn

department.

to shipment.

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Marketing Strategies of MTM

Marketing Department cannot be ignored in any organization. .Because it is the heart & soul of the organizations MTM cannot ignore the pivotal importance of this department. The marketing manager with the Chief Executive officer performed the marketing activities jointly. They not only promote their department but also visit the .foreign markets to search their new customers ,Marketing Manager performs the following activities

Look overall problems of the departments and the Devises all the marketing related policies. Delights the customers by solving their problems. Co-ordinates with the merchandising department. Checks and observes all the activities of textile

problems faced by the customers.

sectors especially keeping focus on the competitors activities.

The marketing department with the help of merchandising department makes it possible that the order place by the customers .should be completed within specified time .MTM sell the product with the brand name of the customers

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Competitive Strategy

Back track system

Masood textile mill is the only mill in Pakistan with latest computerized barcode system that assures quality in every operation of production from spinning to packing. Products of each department carry bar code stickers, which bear all the details and history of the operations of that product. Hence if any problem is reported, one can trace back the root of the problem and enable to prevent occurrence of the same in future

.
Vertically integrated operations
Besides, Masood is one of the few fully vertical textile mills in Pakistan having inhouse yarn, knitting, fabric dyeing, processing, laundry and apparel manufacturing facilities. The vertically integrated operations help Masood in achieving shorter lead time and greater flexibility to cater the customers

.demand

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Customer profile
Masood is proud to work with 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

.
Champion Chaps Calvin Klein Dockers

www.championusa.com GAP

www.polo.com Hanes

www.cklien.com JC penny

www.dockers.com Levis

www.gap.com Nautica

www.hanes.com www.jcpenny.com Polo Polo R.L

www.levis.com Russell

www.nautica.com Speedo

www.polo.com Tomy Hilfger

www.polo.com Tom Tailor

www.russellcorp.com Vantage

www.speedo.com

www.tomy.com

www.tom- www.vantageapparel.com tailor.com 31

Sears

Jockey

Guess

Foot Locker

www.sears.com www.jockey.com

www.guess.com

www.footlocker.com

Stitching diversity
With over 2700 stitching machines, Masood is producing about 10 lacks pieces per month of fashion garments like Polo, Rugby and Henley shirts along with basic garments like Crew Neck Tee, Sweat shirt, Boxer shorts and Bikinis.

.Masood has in-house embroidery facility equipped with Tajima machines

Experienced professional management
The Masood team comprises a balanced blend of experienced professionals including over 200 MBAs, Textile engineers and industrial engineers. Masood is

.WRAP certified and ISO 9002 certified as well

Aggressive R&D facility
A very aggressive and creative R&D department is always busy in exploring innovative product development enabling Masood to be ahead of many in the

.field

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FINANCE DEPARTMENT IN MTM

In my opinion there is a stock and inventory controlling department at Mills division of MTM, which is named as finance department or I can say that it is only .a part of accounts department not the finance department .This department has three sections Spinning Knitting Dyeing -

:Spinning
:Following reports are prepared in the spinning section Daily Cotton Stock Report Daily Yarn Stock Report Daily Management Report -

This report is reported to the Finance Manager (Head Office and Mills), Accounts Manager (Head Office), and Accounts Officer (Head Office) for the submission to .(the Textile Commissioner (Bureau of Statistics, Lahore

:Knitting
;In the knitting section following reports are prepared Date Wise Yarn Receiving Detail -

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Date Wise Yarn Returned from Outside Date Wise Yarn Returned to Outside Date Wise Yarn Issuance Detail :Dyeing -

Date Wise Grey Fabric Received from Party

:In the dyeing section, the reports prepared are as followed Party wise receiving summary Party wise issuance summary Party wise production summary Party wise issuance summary -

;Besides, above mentioned reports following documents are also maintained Vouchers -

Bill for Daily Expenses Payment to Employees

Collection and Deposit of Cash from Head Office

:Some

documents used in Finance Department

:(Goods inspection Report/Receipts notes (GRN Issued for purchased items by purchasing department. These documents sent to Head Office and they clear the bills means payment of these bills. Store .department saves these documents by using some oracle program

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:Application form for Leave Encashment Total leaves Annual leaves Sick leaves Casual leaves 32 14 08 10

Calculation of leave encashment Total salary / 30 * No. of leaves spare= Amount payable

Social security contribution of employees

Some portion of total salary separated for social security contribution. Benefit for employees. In MTM 8.83% of total salary is contributed for social security. Rs.20 is deducted from employees salary and balance is provided by the owner.

Over time
.Payment of over time is given to employees by using following formula Net salary / 26 / 8 * No. of hours= Over time pay 596.15=31 * 8 / 26 / 4000 Total working days in a month =26 Total working hours in a day =08

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Contribution Employees contribution (Employers contribution Rs.20 balance (remaining

Guzted days amount

.Basic pay / 26 / 8 * 24 No. of Guzted days Net pay = 4000 Basic pay =Net pay * 2 / 3 Basic pay =4000 * 2 / 3=2666.66 Basic Pay Gusted day =2666.66 =03

Basic pay / 26 / 8 * 24 * No. of guzted days Net payable 923= 3 * 24 * 8 / 26/ 2666.66

Final settlement
Salary + Benefits Deductions = Net Payable

Final clearance form

,Employee must be cleared from the following departments Head of department Main store Office mess / canteen Security Administration Human resource Information technology

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Petrol and maintenance allowances are given to different persons according to their designation. Whether they have companys provided conveyance or personal. Bills issued by petrol pumps, CNG and maintenance are attached with summary. Then checked the date, serial no, vehicle no, limit of petrol, limit of maintenance charges etc. then these bills checked by account officer etc. then send to head office they also checked it and send amount to MTM Apparel in the .shape of cheques , from cashier specific persons get their allowances ,Following limits provided

Purchase order
It is Prepare by purchase departments. This form includes quantity, description, rate, total amount issue date and delivery requirement date, terms of payment etc

Bill
It is Issue by the selling company (packages club). It includes the quantity and its .price per unit .No. of units * price per unit = total amount including sales tax

Journal voucher
When we purchases on credit then journal voucher is necessary and we make .the following entry Store-code A/c Sales tax A/c Packages club A/c Narration: being store purchased bill received and adjusted Transactions Daily Fortnight

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One month One year

Types of vouchers Cash voucher 1 Cash payments voucher Cash receipts voucher Bank payments voucher Bank receipts voucher Sales voucher Purchase voucher

Bank voucher 2

Journal voucher 3

Parties exempted from deduction of withholding tax u/s 153(5) of income tax .ordinance 2001 .Cement, petrol, some computer accessories When the invoices are more than fifty thousand then for the purpose of refund we make payment within 180 days. Payment evidence is necessary for tax refund. .Payment evidence includes cheques and challan number of tax Debit note -------- issue against purchase return Credit note-------- issue against sale return In case of 15% excess booked in purchases will be refunded after In case of work in process things we can claim 15% GST. In case of end user cannot claim 15% GST. E.G tyres, AC etc. purchases.

:Entry at the time of purchases Expense/store code A/c Sales tax A/c To party A/c

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:Entry at the time of sale Party A/c To sales A/c To sales tax A/c :After 15 days when we return file (Sales tax A/c (out put (Less: sales tax (in put refundable sales tax = :Entry Sales tax refundable A/c To in put/out put tax

:When tax department rejected some tax then entry Rejected sales tax A/c To refund receivable A/c :When sales tax refunded Bank A/c To refund receivable A/c ,Sales tax return form includes 1. 2. 3. 4. 5. Sales tax registration number. N.T.N. Name Tax period. Excess amount of input tax carried forward from the preceding tax

period, if any

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6. 7. 8. 9. 10. 11.

Unclaimed input tax from immediate three preceding tax period Sales Purchases Arrears/additional tax/recoveries pointed out by audit. Penalty for late filing. Net amount payable including arrears additional tax and penalties.

(excluding column #05)

FORWERDING DEPARTTMENT
EXPORT
Process Firm must be registered in export promotion bearue. If a firm has national tax .number then that specific firm can export its products without registration Then company prepares its products samples and shows to different buyers who want to purchase it. If the samples are up to the mark then they give sample order (trial order) to the company, the order consist of minimum quantity means only to check that the product is according to the sample. Buyer check the quality, color, dye, reactive dye, yarn dye, shrinkage, weight in grams, size, and freight charges etc. Freight charges mean who will bear the charges buyer or seller and what its effect on price per unit. Negotiations on price, when the price settled the buyer place the order. To fulfill an order, the meeting held between .managers to check the requirement Arrange yarn Knitting Dyeing Drying Cutting

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Stitching Labeling Pressing Packing Packing list Shipment

Prepare document, one copy send to Air port or sea port. Custom officers check .these documents for clearance Air way bill ----------- in case of air port Bill of lading ----------in case of sea port

Term of shipment
1. Freight on board (FOB) Freight charges from Faisalabad to Karachi are bear by factory other .charges bear by the buyer 2. Carriage and Freight (C & F) From factory to buyers destination port charges born by the selle 3. Carriage, Insurance and Freight (CIF) .including insurance expenses 4. Cash against documents (CAD) .payment will be made

From factory to buyers destination port charges born by the seller

Payments at sight means when documents received by buyer then

Letter of Credit (L/C) types

1. L/C at sight

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When seller submits documents into the bank then payment will be .made to buyer 2. 3. 4. . 5. 120 days from shipment date. Payment will be made after 120 days of submission of documents 30 days from shipment date. 60 days from shipment date. 90 days from shipment date. .Payment will be made after 30 days of submission of documents .Payment will be made after 60 days of submission of documents Payment will be made after 90 days of submission of documents

Mode of shipment
1. 2. 3. By Air. By Sea. Trans shipment.

Types of documents
1. Custom clearance documents. Original commercial invoice (6 copies) Original packing list (6 copies) Form E. Narcotics certificate (if shipment by Air)

2. Buyers requirements. Commercial invoice. Packing list. Bill of lading / Air way bill. Certificate of origin. Issued by Chamber of Commerce for Gulf countries, it is .necessary for exporting products to Gulf countries

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Single country declaration. We give guarantee to buyer that the material used in this .product was made only in Pakistan Multiple countries declaration. For the finished goods or completion of goods we used .imported material from different countries Annexure iii. Used for Panama, we send the Air way bill / shipment bill by mail to buyer, then buyer check it and send back to seller by mail. These documents send to chamber of commerce for stamping and again send to buyer by mail, and then he approved it. It is used for custom clearance in the buyers .country Quality control report. .Buyers agent checks the quality and other documents etc Inspection certificate. .This certificate is used only for export in Canada Canadian custom invoice. General system of preference (GSP). It is used for European countries. It is used for custom .purpose in the buyers countries

Container sizes 20 feet (standard) 40 feet 40 feet high cube.

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(PPC (production planning & control

PPC is the bridge between merchandising and production department. PPC department plays an indispensable role in a 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 3Ms .((Man, Machine, and Material

Production

Merchandising

PPC

:Functions

of PPC
Optimization of resources (man, machine, material) Costing research and development(R&D) Purchase order receiving Capacity Time line (time, action) Fabric accessories (stitching and packing) Fabric demand plan (lead time) Accessories demand plan

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-:Costing This is the most important responsibilities of PPC department .It is responsible for accurate costing of production. The price of the single accessory cant be ignored .On the basis of cost, given by PPC, merchandiser negotiates with the customer. This is crucial point in getting the purchase order (PO) the main things that are taken into account during costing and pricing of product are .as follows (Fabric Cost (Yarn Dying and Knitting :1 Stitching Cost :2 Packing and Accessory Cost :3 Overhead Financial Charges :4 Margin and Rejection :5 Freight on Board :6

:Production

Allocation

PPC fulfill this responsibility by making a schedule, which deals it when and from where fabric is received, when cutting is done to which production .unit order will be process, and so on

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:PPC

Profile

A PPC profile is prepared which contains all the specifications that has been demanded by customer and distributed to all the concerned departments in which whole execution of order is done. Following points are included in this .profile

Purchase Order :1 Buyer Name :2 Description :3 Quality :4 Color and size Breakdown :5 Time Line :6 Size Chart and cutting Design :7 Packing Program :8 Accessory Sheet :9 Fabric Order Confirmation Sheets :10 Action Calendar :11

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Production Department:
There are total 12 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 the production.

Observations:
As practical work is done in units so we observed a lot of implementations of our subjects. Here what we like most is the TQM implementation. Each and every employee is conscious about Quality and they all work as a team to maintain it. Quality is the core competency of Masood textile mills that differentiates Masood from its competitors. The main tasks of production department are Quality maintenance and on time delivery.

Process:
Production process Is as follows: 1:Stitching (Process flow) 2:Ironing 3:Finishing checks 4:Packing accessory attachment 5:Packing

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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 process flow which we saw for a making and hem and so on). Here they attach the identification codes to the garments, which help in back track system. Quality which is the core competency of Masood textile mills is maintained by inline supervisors. These inline supervisors check the stitching and plucking and faults is removed immediately. specific garment tells how a garment is stitched (first moon over lock, then moon attach ,then pocket hem, then pocket

Ironing:
After completion of stitching the garment is 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 Checks:
1: Stain
2: Rafu 3: Re Stitch

Packing Accessory Attachment:

After final check packing accessories like companying stickers, hanging tags are attached.

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Packing:
In this stage garment is packed according to customers requirement. Finishing Supervisors check whether packing is as per requirement or not.

Process Observations:
Cutting (machine arrange, SAM, chain flow, man power) Induction (barcodes, bundles) Sewing (inline inspection for quality control) Clipping Pressing Final inspection Super Final inspection Packing Internal audit External audit X factory In line inspection most of the faults are ruffo, puckering, stain and alteration. Same inspection is performed in final and super final inspection. The method of final inspection is clockwise.

:Types

of machines

(1) Lock stitch (L/S) Single Needle needles 2 (2)Over lock (O/L) Threads 4 Threads 3 49

(3)Flat lock (F/L) Minicylender Cylinder bed Flat bed Feed of arm Auto trimmer Feedo flat lock 4 needle Zigzag (4) (Button attach (B/A (5) (Button holes (B/H (6) Bar take (7) :Operations

of some Machines

:Single needle L/S Placket making, collar attach, cuff thoka, side went, half moon attach :thread O/L 4 Neck rib, shoulder attach, cuff attach :Main

parts of machines

:Gauge set Pressure footNeedle platfeed dogsNeedle bar:Thread tension post .it is used for losing and tighten the thread

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:Stitch dial .Increase or decrease the stitches

:Brands (Yamato (F/L, O/L (1 (Pegasus (F/L, O/L (2 ((Siruba (L/S, B/H, O/L (3 (Juki (L/S, B/A, B/H, Feedo (4 (Mitsubishi (L/S (5 (Taking (Feedo (6 (Toyota (O/L (7 (Kansai (F/L 4 Needle (8

Flow Of A Polo Shirt: machines

(1) (2) (3) (4) (5) (6) Half Moon cutting Main label Moon attach 2 NEEDLE Shoulder attach Shoulder attach top stitch Placket A L/S O/L F/L L/S O/L L/S

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(7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) :Specs Collar attach Collar top stich Neck B Cuff cutting Cuff attach Cuff top stitch Sleeve attach Sleeve top stitch Body hem Side seam Side vent (check) Kaj Button attach Bar take Inter inspection Clipping pressing Final inspection Super final inspection

Collar thoka O/L L/S L/S O/L O/L F/L O/L F/L F/L O/L L/S

L/S

of garments
straight shoulder across shoulder sleeve opening sleeve inseam sleeve length sleeve length from HPS sleeve hem height upper arm/bicep across chest 52

(1) (2) (3) (4) (5) (6) (7) (8) (9)

(10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) (31) (32) (33) (34) :Garment :Tops (1) (2)

chest side seam bottom neck back drop arm hole straight arm hole curve neck front drop sleeve length from CBN shoulder slope waist collar bad width placket opening placket length waist band width side seam excluding waist band side seam including waist band leg opening leg hem height fly opening crotch seam full seam front rise back rise Thai hip

types

Crew neck Polo 53

(3) (4) (5) (6) (7) (8) (9) High neck(10) Mock neck(11) V-neck(12) V-insert(13) Sleeve less(14)

Rugby Hood Qzp Full zipper Raglan Tank top Henley

Bottoms:
(1) Pant (2) Short (3) Boxer brief (4) Boxer short

Accessories, which are used: Labels:

The following labels are used during preparing any garments

a) Main label:
These labels mostly show company brand name.

b) Size label:
It shows size of the garment whether it is (S, L, M, XL, XXL).

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c) Care label (side label):

In this label the instructions are mentioned like washing.

d) Fire label:
The purpose of this label is dont go near fire because fabric Has polestar.

e) Patch label (company promotion label):This label shows the company name, it is mostly attached on the back side of the pent or trouser. It is seamed on all sides.

Type of tapes: a) Feedo tape:

It is making with body fabric and cutting in unit and attached with feedo machine.

b) Twill tape:
It is specially knitted tape. Other accessories:

Draw cord Fusing Types of threads:

a) Cotton thread

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b) Diner c) Intermingle

Buttons:
a) Straight b) Cross

Needles:
PARTS OF NEEDLE ARE (1) Shank (2) Needle Tip Hole (3) Needle Eye (4) Scarf (Cut) (5) Taper (6) Needle Blade (7) Groove

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QUALITY ASSURANCE;
Quality:
It is a standard achieved by process to render defect free product.

Quality control:
Implementation of process to achieve the required standard.

Quality assurance:
Preventive measures taken to make defect free product. Responsibilities of quality assurance: There are three responsibilities of quality assurance. (1) Monitoring the system (2) evaluating staff involved (3) assuring quality of product

Working:
Quality is the major concern, to maintain the quality; there are quality checks at every stage of manufacturing starting from raw cotton, yarn, fabric, processing, cutting stitching and end at packing. In apparel division, fabric is first checked and when find per customers requirement then it is issued to cutting department. Here fabric is checked for shrinkage, finished g/cm2 etc.Then next check point is in quality pieces move to the stitching units. The next check point is in production department. In production department there are inline inspectors for inspection on the spot and now Masood has hired an expert Quality Assurance team from Sri Lanka they are responsible for assuring the Quality measures of each Garment. Internal and External Audits are one of the most important checks .Internal auditors are from Masoods end and external auditors from buyers end.

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Corrective and Preventive Actions:

The corrective and preventive actions are very strong in Masood.Strong preventive actions are designed to ensure the quality and avoid any kind of faut.But if any thing goes wrong then relevant person immediately take corrective action. 1: Preventive Actions: a) Fabric Audit b) Cutting Audit c) Inline Audit d) Measurement Audit e) Finishing Audit f) Final Good Audit Corrective Actions: a) Warnings b) Demotions c) Dismissals

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CLOSE LOOP CORRECTIVE ACTION (CLCA):

Inspection

Solution (preventive measure)

Identifying the defect

Root cause of defect

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:Sale & employees volume

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FINANCIAL ANALYSIS
We are analyzing the companys current position to assess that the company is how much efficient. We calculate vertical & horizontal analysis and then to different ratios to assess our findings and then compare it with industrys past data. We start our analysis from the auditors report to know that is the company following the generally accepted accounting principles. Because a GAAP are basics to know that the company financial reports are fair and giving right information to its users. In the auditors report the auditors opinion shows THE COMPANY HAVE BEEN DRAWN UP INCONFIRMITY WITH |COMPANIES ORDINANCE 1984 ,The companies financial statements are Balance sheet Profit & loss account Cash flow statement Owner equity statement We firstly calculate the vertical and horizontal analysis to know the .companies past and current trend

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Short Term Liquidity Position

Short term debt paying ability is Important to all users of financial statements. If the entity can not maintain a short term debt paying ability it will not be able to maintain a long term debt paying ability nor it will be able to satisfy its stock holders. Profit ability of the firm does not determine the short term debt paying ability. In other words using accrual accounting, the entity may report high .profits but may not have the ability to pay its current bills

The account R/A Turnover indicates the liquidity of the R/A, means that how .many tines our R/A is converted into cash in a year

A/R Turnover = Avg. Gross R/A

Net Sales

Interpretation

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In 2006 account receivable turnover ratio is 3.4624 which shows the decreasing trend and in this way our sales rapidly decreases and concludes that liquidity .position weakened

Liquidity ratios
To know that the company is how much is efficient to pay its short and long term obligations. It is necessary to calculate the liquidity of the firm as when analizing the short term debt paying ability of the firm. We find a close relationship between the current and the current liabilities. Generally the current .liabilities will be paid with cash

Current Ratio

Interpretation
For many years the gridline for the minimum current ratio has been 2. As the companys current ratio is declining in 2006 due to increase in current liabilities with 67

compare to 2005. So, we conclude that company are so much successful in staying above .a current ratio 2 and indicates an incline in liquidity of the firm

;Quick ratio
The asset test ratio relates the most liquid assets to current liabilities. Inventory is removed from current assets when computing the acid test/ quick ratio. The usual guideline for the quick ratio is 1 a comparison should be made with firm past acid .test ratios and with major competitors

Quick Ratio

;Interpretation
.The efficient quick ratio 1 company meets this standard

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As the company quick ratio is declining leads to more bankruptcies and great risk for .creditors and investors

:Profitability Ratio
Stockholders derive revenue in from of dividend. Profitability is the ability of the company to generate earnings dividends are pay out of profit/ earnings. Further, increased profits can cause a rise in market price, leading to capital gain. Creditors also attracted .towards profit because it is a source of debt coverage Net Profit Ratio

Interpretation
Net Profit Ratio in 2006 decrease to 2.483% which shows that our net Profit decrease with compared to 2005 that concludes the profitability of the .company decline which shows the bad image to the creditors

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Return on Equity Capital

Return on Total Equity measures the return to both common and preferred shareholders. It means once one dollar invested by the shareholder earns how much net income. In this ratio equity means both common shareholders and preferred shareholders

:Interpretation
In 2006 return equity is 40.556% which shows that investors invest 1 rupee in the company and gets profit of 40.556% which is an increasing trend with compared to the .past data. This shows the profitability increases

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:Return on Assets
Return on Assets measures the ability of firm to utilize its assets to create profit by comparing profits with the assets. How efficiently the company yses its assets and .earn from them

:Interpretation
Due to capacity company assets shows low return which is not suitable for company as we shows that in 2006 its goes to 1.866% which is 4.91% in 2002 .which is a great decline and shows the low profitability ratio

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Earning Per Share

The amount of income earned on a share of common stock during an accounting period is the earning per common share. One share of common stock ears how much dollar of income in a year is the interpretation of Basic Earnings per Common share

:Interpretation
An increasing trend looks in 2006 regarding earning per share its means a share holder invest 1 rupee and earned 4.06% it when compared with 2002 shows Decreasing trend but an increasing trend looks when 2004 and 2005.and increasing the investor position in the company

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SWOT ANALYSIS
Managers of MTM always review the mission and goals and then they scan the internal and external environment to identify elements that influence the organization performance. To determine such elements SWOT analysis is

.conducted
SWOT is a method that helps managers identify the organizational strengths (S)

.(Weakness (W) Opportunities (O) Threats (T

Strengths

Latest machinery
The mill has latest machinery, which they have imported from

foreign country to meet the international quality standards

.standards

ISO 9002 Certificate

The company has got ISO 9002 certificate which insure the quality

High Financial Resources Strong market image

.The company has high financial resources

The company has strong market image in foreign market. The buyer can purchase same product from the competitor at low price but due to strong

.marker image they purchase from MTM

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Proven management

MTM has proven management. All management is very competent. They

.know how to satisfy their customers

Products innovation abilities

.The management has product innovation abilities

Weaknesses
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

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

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The company has very less promotional activities in local an international

.media

Opportunities
Potential in market Entering new markets Addition new product line Faster market growth Potential in market

Threats
Political instability in country Economic instability Though competition Adverse government policies Easy access of buyers in world markets

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:Conclusion & Recommendation for Improvement

-:Conclusion
Following conclusion is based on my learning during the stay period of Masood .Textile The overall acceptable environment but needs to be Decentralization of authority. Good image in the international market. Good reputation of product in the mind of customer. Well defined and systematic recruitment criteria. Lack of authorities in the hands of Managers. Highly Qualified Management. Masood is one of the best apparel producer in improved.

Pakistan, most probably number 1 in PAKISTAN and number 3rd in ASIA. Masood has one of the best Oracle data base & I.T System

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-:Recommendation
Masood should try to reduce per minute & per unit Masood should try to reduce the financial cost that Need to develop a culture of cooperation and cost too meet the buyers requirement regarding low prices. normally incurred to meet the huge level of business volume. teamwork. For this purpose a revolutionary commitment from higher management is required at this time, otherwise mtm may not be able to cash the benefits of quota elimination. The misbehavior of some responsible managers with the working force is creating unrest and feelings of being treated like slaves among the workers. For the purpose of improvement in this sector the line management should be trained and must be educated how to behave the workforce. Employees should be encouraged to come up with Proper training at each level should be given to the Special incentives should be given to the good Need to improve fabric to induction process to avoid The biggest problem of this time is needed to improve revolutionary thoughts. employees. employees for motivation and encouragement. air shipments. proper execution of customer purchase orders.

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Need to improve utilization of available capacity to Need to improve cost of white elephant of apparel i.e. high rejection, excess cutting, excess

reduce per unit cost. division

consumption of accessories, air freight, unabsorption of fixed overhead, overtime etc.

Glossary
GSM P.O SPI PPK WRAP CBL CBN Wales Cordses CPO CPI Splices PPC GGT R&I Scarf GRN IGP OGP FID IE Gram Per Square Meter Purchase Order Stitch Per Inch Product Package World Wide Responsible Apparel Process Central Back Length Central Back neck vertical Lines horizontal lines Cutting Planning Officer Cut Panel Inspection A separator between the fabric plies which are cut Production Planning and control Garments Gerber Technology Receive and Issue cut Goods Received Now Interword Gate Pass Outword gate Pass Fabric Inspection Department Industrial Engineering 78

Lead Time Order to Shipment Time

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