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Transcript of Bilal Naseer
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KOHINOOR TEXTILEMILLS, Ltd.
Submitted By:
Bilal Naseer, Saddam Rafay
Salahudin Sultan, Majid ImtiazSubmitted To:
Madam Rabia Shareef
MBA-3(A)
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INTRODUCTION:
Kohinoor textile Mills Ltd is part of Kohinoor Maple Leaf Group, which was born from
the trifurcation of the Saigol group of companies and is a reputable and leading
manufacturer of textiles and cement. KMLG comprises of Kohinoor Textile Mills limited
(KTML) and Maple Leaf Cement factory limited (MLCF). Both companies are
incorporated in Pakistan and are listed on three stock exchanges of the country.
KTML was established in 1953 at Rawalpindi and is one of the oldest companies of
Pakistan with over 50 years experience in textile manufacturing. It was initially set up
as a spinning and weaving project with 25,000 spindles and 600 looms. However, after
decades of aggressive expansion and modernization KTML has emerged into a fully
vertically integrated home textiles company with state of the art capabilities for
spinning, weaving, dyeing, printing and stitching. The company has a diverse customer
base with sales in both the local and export markets. The main international markets
include Asia, Europe, USA and Australia.
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VISION STATEMENT:
The Kohinoor Textile Mills Limited stated vision, Is to achieve
And then remain as the most progressive and profitable company in
Pakistan in terms of industry standards and stakeholder interest.
MISSION STATEMENT:
The company shall achieve its mission
through a continuous process of having
sourced, developed, implemented and
managed the best leading edge
technology, industry best practice,
human resource and innovative
products and services and sold these to its customers, suppliers and stakeholders.
ORGANIZATIONAL STRUCTURE OF KTML
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OBJECTIVES OF THE COMPANY:
1. To carry on the business of , cotton spinners, and doublers, linen and cloth
manufacturers, jute, flax, hemp, cotton and wool merchants, dyers and manufacturers
of bleaching and dyeing materials in Pakistan and all over the world.
2. Throughout Pakistan and throughout the world, to purchase, weave and otherwise
manufacture, buy and sell and deal in all kinds of cloth and other goods and fabrics,
whether textile netted or looped..
3. To carry on the business of drapers, furnishers and dealers in waterproof materials
and fabrics, silk weavers, cotton spinners, cotton ginners, cloth manufacturers, furriers,
haberdashers, hosiers, Pauline, American cloth, floor cloth and all kinds of imitation
leathers and rubbers.
4. To carry on all or any of the businesses of silk mercers, s manufacturers, importers
and wholesale and retail dealers of and in textile fabrics of all kinds.
5. To carry on the business of mechanical engineers and manufacturers of machinery
and implements of all kinds .
6. To lease, let out on hire, mortgage, sell or otherwise dispose of the whole of any part
of the undertaking of the Company, - or any lands, business, property rights or interest
therein.
CURRENT CAPACITY:
Kohinoor Textiles comprises of two spinning divisions located at Rawalpindi (KTML)
and Gujjar Khan (KGM). There are a total of nine units with 151,000 spindles capable
of spinning a complete range of coarse and fine count yarn from natural and manmade
fibers. In particular, Kohinoor specializes in fine count yarn for high thread count home
textile products. The total production of yarn is 28,800,000 Lbs per annum. Five units
with 85,500 spindles are at Rawalpindi and four units with 65,500 spindles are at KGM.
The dyeing and printing capacity is 48 million meters per annum and the capacity for
pre-treatment and bleaching is 6 million meters. The maximum width capacity for
bleaching is 3.4 meters and for dyeing and printing is 3.2 meters.
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SPINNING:
Kohinoor Textiles comprises of two spinning divisions located at Rawalpindi (KTML)
and Gujjar Khan (KGM). There are a total of nine units with 151,000 spindles capable
of spinning a complete range of coarse and fine count yarn from natural and man
madefibers. In particular, Kohinoor specializes in fine count yarn for high thread count
home textile products. The total production of yarn is 28,800,000 Lbs. per annum. Five
units with 85,500 spindles are at Rawalpindi and four units with 65,500 spindles are at
KGM. Both divisions are modern facilities with state of the art machinery from Europe
and Japan.Kohinoor manufactures a range of coarse and fine count yarn.
COTTON YARN:
Cotton yarn is produced from premium quality Pakistani, Extra Long/ Medium StapleCIS, US Pima and Egyptian cotton. The fine combed yarn manufactured from the finest
cotton is generally used for all high-end home products.
BLENDED YARN:
Blended yarn is produced with polyester fibre. The fine poly-cotton yarn is blended with
ELS cotton and is generally used for products such as bed linen etc.
SPECIAL FIBRE YARN:
Kohinoor has developed innovative products using CVC blended with Bright and
Lyocellfibres. In order to keep up with new trends and developments, Kohinoor places
the utmost importance on product development. Several products currently under
development include.
Coarse count yarn with Pakistani, FaiberMax, Australian, PIMA, and GIZA
cottons for knitting and weaving
Knitting yarns for shirts with Fabire Max, Memphis, Brazilian and
Australian Cotton
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WEAVING:
KRM produces a wide range of griege fabric for home textile products with a maximum
width of 128 inches and styles that range from 100 to 1000 thread count. In particular,Kohinoor specializes in high thread count fabrics with an average yarn count of NE
40/1-NE140/1. Manufactured from combed 100% cotton and poly cotton, some designs
include Percales, Satins, Striped Satins, Poplins, Twills and Herringbones etc.
Kohinoor can also produce fabric with special blends of yarn that can be sourced
according to customer requirements. Some of these are Lycra, Nylon, Polyester
filament/fiber, Tencel, Linen, Bamboo, Coolmax, Modal, Lyocell, Viscose, Wool,
Polypoplene, Acrylic, Soyabean and Silk etc.
PRINTING, DYING AND SITITCHING:
All dyed and printed fabric is converted into a finished product at the stitching unit of
KTML. Kohinoor has also developed a number of special finishes for home products.
These include Anti-Bacterial, Easy Care, Scotch Guard, Water Repellent and Fire
retardant finishes.
QUALITY INSPECTION AT KTML
At KTML Quality inspection is necessary to ensure the quality of the product. Quality
Inspection can be defined as the critical examination. KTML divides the quality
inspection in to three stages.
RECEIVING INSPECTION:
Receiving inspection are carried out before the start of a process, at the end process
and then after the final stage of production system to segregate good products from the
bad ones. Non conforming products are reworked, downgraded, scrapped or even
used for the purpose other than original.
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IN PROCESS INSPECTION:
In-process inspection are carried out during the process of manufacturing such as
during cutting, stitching, pre final audits.
FINAL INSPECTION:
Final inspection are carried out after the completing of the whole manufacturing
process, once the product came in the from of finished good.
QUALITY ASSURANCE DEPARTMENT:
At KTML Quality Assurance is being practiced. There is a separate department by the
name of Quality Assurance Department. In some areas there is a blend of both Quality
Assurance and Quality Control.
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HUMAN RESOURCE DEVELOPMENT & MANAGEMENT
Human resource can be a very crucial factor in implementing the TQM concepts in any
organization. It is the people who can really make quality work in their job. The best
way to achieve success for any organization is to involve and empower its employees
at tall levels.
TRAINING:
At KTML they provide training to there employee. Almost all courses conducted more
then one time in a year. Some of these courses are specific to higher level or
managerial level and some are for the lower level workers. Employees are also given
orientation training at the time of induction. They are told about quality processes being
followed at the mill and about the quality standards. This training is given by the quality
assurance department as well as by the department in which the employee is hired.
The Human resource Department also gives orientation training to the new employees.
ISO 9001-2000 AWARENESS:
They run this training course during April and Sept under the supervision of top
management. However this course is mostly attended by the top and middle level
employees.
UNDERSTANDING SA-8000:
KTML is now striving for SA-8000 certification. This is mainly concerned with the
workers and quality of work life. The main purpose of this training course is to make
employees understand SA-8000. This activity is done during the month of Feb and
December.
IMPROVING PRODUCTIVITY:
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Quality implementation in an organization leads to an increase in the overall
productivity. This course is carried out at KTMLG for the top level as well as the lower
level employees.
STATISTICAL TECHNIQUES:
This course is conducted during the months of January and August. This course is for
managers and top level employees.
TRAINING TECHNIQUES FOR TRAINERS:
Before launching the training courses instructors are trained so as to give training on
some specific lines. HRM department carry out this programs during the month of
January.
CUSTOMER FOCUS AND SATISFACTION:
KTML deals with both the national and international clients. Customers are given very
high priority. KTML is not giving any off-shelf products but the customers give their own
specifications and then products are made accordingly. The industry defection rate is 4-
5% and they are maintaining within the same limits. At KTML they can customize the
processes in order to meet the customer specifications but they never change or
compromise on customer specifications. Every process is in documented form. At each
level some changes occur in almost all the processes but customer specifications in the
document never changes.
They are meeting and fulfilling their customers needs and have made loyal customers
in local as well as the foreign market. One thing that we would like to add and which we
think would add to their customer satisfaction is that if they would feel that there are
things which can improve the product of the customer and could give them cost or
other feature benefits. Also they should get a continuous fed back from their customers.
Even if they are not preparing any product from them they should provide their regular
customers with feedback form. Also they should also provide them with the samples of
the products or designs that they are producing at their factory. Also they should invite
the customers for inspection while processing for their orders, from time to time.
INVENTORY CONTROL (JUST IN TIME):
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For inventory control they have the Inventory Department. Inventory is not maintained
on Just In Time (JIT) basis because of the poor infrastructure. The transport system is
not very efficient also roads are not in a very good condition so you are never sure of
whether your goods will reach on time or not. So at KTML goods are reordered on need
basis.
BENCH MARK:
KTML do not benchmark any certain company. They benchmark their processes with
relation to the House of Quality i.e. they check for the processes of other companies
and categorise them and if they find any process better than their own then they
benchmark in that area. They can be benchmarked themselves by other companies for
any process as well. To benchmark in any area they look for cost and productivity,
quality, timeliness and efficiency of that process for the business operations. After
checking these things they check their own processes to determine that why they are
lacking behind and then they take the required action. As KTML is an exporting
company so they should benchmark their processes with the processes of foreign
competitors.
ACHIVEMENTS
AWARD CERTIFICATES:
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HAVING OWN ELECTRICITY PLANT:
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KML having own electricity power plant which is producing not only for the KWML but
also providing electricity to other companies and to govt. at subsidy rate.
ERP SOFTWARE:
ERP (Enterprise Resource Planning) has been installed in KML thats why company is
saving all records in systems and having huge database.
POWER LOOMS:
KML has purchased latest power looms Toyota Air Jet Power Looms. Thats why they
have reduced the production cost and have increased the quality and efficiency of their
textile products.
QUALITY FAILURES OF KTML
MAJOR DEFECTS:
Major woven fabric defects include but are not limited to slabs, holes, missing yarns,yarn variation, soiled yarns, and wrong yarn. Major dye or printing defects are out of
register, dye spots, machine stop, color out, color smear, or shading.
EMPLOYEES MOTIVATIONAL LEVEL:
Their employees are not motivated thats why they are getting off and putting their
resigns in front of managers and executives. This is the responsibility of HR department
to find out at to see at the time of hiring them that what the thing is that their employees
can be motivated.
EVERY BOOKED ORDER IS DELIVERED LATELY:
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The delivery of each contract is always not done on time. The customer has to wait for
4 to 5 weeks to get his/her desired product. The main reason is that late purchasing of
raw material. Raw material just like Yarn and Sizing material is not available on time
and some time it happens that there is shortage of raw material during the running
contract thats why production department has to wait for the raw material.
ADMINISTRATIVE EXPENSES:
There are high overhead charges throughout the year particularly administrative
expenditures. Management whether it is lower management or upper management, the
expenditures are same but company is getting equally profit from them thats why
expenditures are increasing.
RELIABILITY ON FOREIGN CUSTOMERS:
Always organization has to rely on foreign customers. KTML is too much depending
upon their foreign customers but because of rapid changes in political situation, trade &
export laws it would become risky and loss of customers.
COMMERCIAL DEPARTMENT:
Commercial department of KML is showing its little bit bad performance. Means always
the yarn is purchased late and on credit and payments are done by the department
always very late. There is no proper or pre-plan for the month or for couple of weeks so
that amount should be received to pay the suppliers. Each time purchasing of yarn is
done belatedly so that looms not run and hence per day cost increased and
depreciation also.
GODOWN POSITION:
There is no proper placing for final products to place them safely and at the time of their
dispatch there is possibility of mistake.
ERP SOFTWARE:
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Its good that KML has ERP software in their systems. But there are number of errors
that are occurred much time. For example, during the dispatch of product, you have to
click all the rolls manually. There is no option to select them all and other problem is to
calculate the weight of packed rolls. You have to do all these things manually.
COMMUNICATION GAP:
There are a little bit gaps in communication between the departments. May be these
confirm each and every thing from each other but still they make mistakes and blame
each others to safe them.
MARKETING OF TEXTILE PRODUCTS:
KML has no proper planning for the Marketing. They advertise about their selves only
from newspapers. Thats why limited number of people knows about them.
CASE OF QUALITY FAILURE:
When we asked about the quality failures of KTML then they told us that in 2001 -2002
we have faced severe loss inside and outside the country because of quality failure due
to fake color and fur.
FACTORS BEHIND IT:
They have not the facility of proper storage thats why the flood effected their stock
which may caused to damage their stock, due to that the quality of color effected.
STEPS FOR IMPROVEMENT/SUGGESTIONS
NEW TECHNOLOGY:
KtML has the opportunity to invest for the new technology. By acquiring the latest
technology, they can increase the production quality, efficiency and can decrease the
cost of production.
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MOTIVATING THE EMPLOYEES:
HR department can prove and show them they are here for employees by motivating
the employees performing their best. They can find the motivation level of their
employees and give them incentives to motivate them.
PROJECTS FOR THE LOCAL MARKET:
KWML has the opportunity to capture the market share locally by launching new
projects just like they have launched Dhanak in August 2008. They can start new
projects in garments, Apparel or Home Tax, Dyeing, Hosiery.
ADVERTISING:
KML has the opportunity to advertise about their selves to promote their textileproducts. They can advertise in international magazines about themselves KML can
publish its own local business magazine to promote themselves . Can also be
advertised over the internet (electronic Marketing)
KMLS OWN SHOPS:
KML can open its own shops in local market where they can display their garments
products (socks, Trousers) and Apparels as well as curtains.
ONLINE SHOPPING STORE:
KML can open its online store where they can show their garments variety and
apparels. The advantage of this step would be Online Marketing Capturing the market
over internet internationally capturing the market over internet locally. The material
which you put on your fair price shop can be sold out at online shop.
CONCLUSION:
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KTML is following standardized processes in their company. They are striving for
continuous improvement in their organization from many years. However still there is
many things to do. Quality cannot be implemented in a big organization like Kohinoor in
one or two years. It requires a complete cultural change and continuous and devoted
leadership struggle. At Kohinoor what we have found is that they are using the
appropriate processes and are continuously trying to make them better. However, the
main area where they are lagging behind and where they are not emphasizing is the
Human Resource management and development. Top level employees are well aware
of their responsibilities and also the market trend but the lower level employees just do
what they are ordered. So they should develop the manpower.They take the T of
TQM as the total products instead of considering all personnel responsible in KTML.
Small q of TQM is applied in KTML. They consider that only the production
department (operators, inspectors etc.) is responsible for poor quality.
REFERENCES:
www.kmlg.com/kmlg/management.php
Mr.shehzad (vice manager in ktml)
051-4422589
http://www.kmlg.com/kmlg/management.phphttp://www.kmlg.com/kmlg/management.php