report on operation of allah wasaya textile mills
Post on 29-Nov-2014
124 Views
Preview:
TRANSCRIPT
ALLAH WASAYA TEXTILE & FINISHING MILLS
First of all I am thankful to Almighty First of all I am thankful to Almighty AllahAllah who gave me the potential to who gave me the potential to
study and work and Who helped me in every field of life. Then I amstudy and work and Who helped me in every field of life. Then I am
thankful to my respected teacher thankful to my respected teacher Mr. Hayat Muhammad AwanMr. Hayat Muhammad Awan who guided and helped me in completing this manuscript and whose help iswho guided and helped me in completing this manuscript and whose help is
like a torch of light for me in darkness.like a torch of light for me in darkness.
I am also very thankful to I am also very thankful to Mr. Malik MuhammadMr. Malik Muhammad KhalidKhalid, The, The
General Manager of ATM and General Manager of ATM and Mr. Muhammad IsmailMr. Muhammad Ismail Accountant inAccountant in
ATM, for providing me the necessary information in completing my report. ATM, for providing me the necessary information in completing my report.
Thank you.Thank you.
Quality Is Our Strength1
ALLAH WASAYA TEXTILE & FINISHING MILLS
DEDICATION DEDICATION
This report is dedicated to my
Who always pray for me to succeed in every field of life.
Quality Is Our Strength2
ALLAH WASAYA TEXTILE & FINISHING MILLS
BOARD OF DIRECTORSBOARD OF DIRECTORS
The Board of Directors consists of following membersThe Board of Directors consists of following members
MIAN MUHAMMAD JAMILMIAN MUHAMMAD JAMILTHE CHAIRMANTHE CHAIRMAN
MIAN MAQBOOL AHMAD MIAN MAQBOOL AHMAD SHEIKHSHEIKH
CHIEF EXECUTIVECHIEF EXECUTIVE
Other Members areOther Members are
MRS. NUSRAT JAMIL MRS. NUSRAT JAMIL
MIAN SARFRAZ AHMAD SHEIKH MIAN SARFRAZ AHMAD SHEIKH
MIAN TANVIR AHMAD SHEIKH MIAN TANVIR AHMAD SHEIKH
MIAN TAUQIR AHMAD SHEIKH MIAN TAUQIR AHMAD SHEIKH
MIAN FAROOQ AHMAD SHEIKH MIAN FAROOQ AHMAD SHEIKH
MISS. ZAHRA FATIMA JAMIL MISS. ZAHRA FATIMA JAMIL MUGHAL MUGHAL
SECRETARY: SECRETARY:
MUHAMMAD QASIM MUHAMMAD QASIM
Quality Is Our Strength3
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength4
ALLAH WASAYA TEXTILE & FINISHING MILLS
INTRODUCTION TO ATMINTRODUCTION TO ATM
Allah Wasaya Textile Mills Limited is located in the old and ancient city ofAllah Wasaya Textile Mills Limited is located in the old and ancient city of
Multan near the colony of Mumtazabad. The company incorporated its firstMultan near the colony of Mumtazabad. The company incorporated its first
unit in 1956 and the next unit was established in 1958 as a private limitedunit in 1956 and the next unit was established in 1958 as a private limited
company in the name of Mr. Allah Wasaya & Company Multan and later oncompany in the name of Mr. Allah Wasaya & Company Multan and later on
the name was changed to Allah Wasaya Textile and Finishing Mills Ltd.the name was changed to Allah Wasaya Textile and Finishing Mills Ltd.
Previously it was producing yarn as well as cloth but later on the productionPreviously it was producing yarn as well as cloth but later on the production
of cloth was stopped in 1978 due to old machinery and now the company isof cloth was stopped in 1978 due to old machinery and now the company is
only producing yarn as its finished good.only producing yarn as its finished good.
SHARES
The shares of Allah Wasaya Mills are also floated in the stockThe shares of Allah Wasaya Mills are also floated in the stock
exchange. The paid-up capital of the Mill is 8M and 25% of this is floated inexchange. The paid-up capital of the Mill is 8M and 25% of this is floated in
the market. The remaining are in the hands of directors. The face value ofthe market. The remaining are in the hands of directors. The face value of
the share is Rs.10 and now its market value is round about Rs.160.Thethe share is Rs.10 and now its market value is round about Rs.160.The
Company paid Rs.29 per share dividend in the last year. The total assets ofCompany paid Rs.29 per share dividend in the last year. The total assets of
the company are of about Rs.500M.the company are of about Rs.500M.
AUDITORS
Hameed Chaudhary & Company, Chartered Accountants, is theirHameed Chaudhary & Company, Chartered Accountants, is their
auditors, which make the audit of the company every year.auditors, which make the audit of the company every year.
Quality Is Our Strength5
ALLAH WASAYA TEXTILE & FINISHING MILLS
BANKS
The company is having its business with following banksThe company is having its business with following banks
HABIB BANK LTDHABIB BANK LTD
BANK AL-HABIBBANK AL-HABIB
METROPOLITON BANKMETROPOLITON BANK
The company pledges its raw material inventory with these banks and theThe company pledges its raw material inventory with these banks and the
bank pays on behalf of the company.bank pays on behalf of the company.
SPINDLES
The company has two departments in which the spindles are fitted.The company has two departments in which the spindles are fitted.
The total number of spindles is 28192, which are working round the day forThe total number of spindles is 28192, which are working round the day for
the fulfillment of the customer’s orders.the fulfillment of the customer’s orders.
MARKETS
The company is selling its finished goods in the local market likeThe company is selling its finished goods in the local market like
Faisalabad and Karachi. The company is not yet exporting anything toFaisalabad and Karachi. The company is not yet exporting anything to
foreign markets.foreign markets.
POWER PRODUCTION
Company has no power plant of its own, so they purchase theCompany has no power plant of its own, so they purchase the
electricity from WAPDA. It has two generators, which are capable ifelectricity from WAPDA. It has two generators, which are capable if
producing the half of the original capacity in case of load shedding.producing the half of the original capacity in case of load shedding.
Quality Is Our Strength6
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength7
ALLAH WASAYA TEXTILE & FINISHING MILLS
LOCATIONLOCATION
Location is very important factor in terms of operating cost, profit and theLocation is very important factor in terms of operating cost, profit and the
price on which the goods are offered. For an organization, location isprice on which the goods are offered. For an organization, location is
important in two waysimportant in two ways
It should be near to your supplier so that your cost can be reduced andIt should be near to your supplier so that your cost can be reduced and
you can deliver prompt service to your customer.you can deliver prompt service to your customer.
You should be near to your target market, means that you should be nearYou should be near to your target market, means that you should be near
to your customer in order to serve them.to your customer in order to serve them.
LOCATION OF ATMLOCATION OF ATM
There are following factors for this organization to be at the present locationThere are following factors for this organization to be at the present location
AVAILABILITY OF RAW MATERIAL
ATM is located at the start of the city that helps it to get the raw ATM is located at the start of the city that helps it to get the raw
material easily and as we all know that Multan is the house of cotton. Cottonmaterial easily and as we all know that Multan is the house of cotton. Cotton
of highest quality is produced in this region .so it is very easy for theof highest quality is produced in this region .so it is very easy for the
organization to get raw material i.e. cotton, at low price and in abundanceorganization to get raw material i.e. cotton, at low price and in abundance
whenever it needs.whenever it needs.
TRANSPORTATION
The Mill is located at a very good place because it is at the start of theThe Mill is located at a very good place because it is at the start of the
city, so it is easy to get material from any transport at any time. It has nocity, so it is easy to get material from any transport at any time. It has no
problem of congestion and every type of transport can come easily here.problem of congestion and every type of transport can come easily here.
LABOR AVAILABILITY AND COST
Quality Is Our Strength8
ALLAH WASAYA TEXTILE & FINISHING MILLS
Effective and efficient labor availability is another important factor inEffective and efficient labor availability is another important factor in
determining the location, so here ample labor is available for thedetermining the location, so here ample labor is available for the
organization at satisfactory prices. All types of labor i.e. skilled, semiskilledorganization at satisfactory prices. All types of labor i.e. skilled, semiskilled
and unskilled can be easily made available when required.and unskilled can be easily made available when required.
ENERGY AVAILABILITY & COST
As a large amount f energy is required for running the plant, a properAs a large amount f energy is required for running the plant, a proper
arrangement of electricity is there form WAPDA for making the requirementarrangement of electricity is there form WAPDA for making the requirement
.In addition to this they have two big generator which work incase of load.In addition to this they have two big generator which work incase of load
shedding and the half capacity can be achieved from there generators.shedding and the half capacity can be achieved from there generators.
ATTITUDE OF COMMUNITY
An Allah Wasaya textile mill is located near to the population and stillAn Allah Wasaya textile mill is located near to the population and still
the attitude of population is favorable because the unit is not causing anythe attitude of population is favorable because the unit is not causing any
type of harm to environment. Its production unit is covered so there is notype of harm to environment. Its production unit is covered so there is no
noise coming out of the premises of the factory and there is no pollution ofnoise coming out of the premises of the factory and there is no pollution of
smoke as well. smoke as well.
LIVING CONDITIONS OF EMPLOYEES
Location appeals to potential employees. All facilities are provided inLocation appeals to potential employees. All facilities are provided in
locality and living standards are much better than the remote areas solocality and living standards are much better than the remote areas so
workers prefer to work here than any other area. Work environment is veryworkers prefer to work here than any other area. Work environment is very
peaceful, calm and quiet.peaceful, calm and quiet.
PROXIMITY TO CUSTOMERS
Quality Is Our Strength9
ALLAH WASAYA TEXTILE & FINISHING MILLS
The mill is located in the area that is near to the customers, which areThe mill is located in the area that is near to the customers, which are
in Faisalabad and Karachi. All type of transportation is available to them toin Faisalabad and Karachi. All type of transportation is available to them to
deliver the yarn to the customers.deliver the yarn to the customers.
Quality Is Our Strength10
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength11
ALLAH WASAYA TEXTILE & FINISHING MILLS
CAPACITYCAPACITY
Capacity means how much an organization is able to produce from itsCapacity means how much an organization is able to produce from its
resources. There can be two types of capacityresources. There can be two types of capacity
PEAK CAPACITY
It is the capacity of the company under ideal conditions.It is the capacity of the company under ideal conditions.
EFFECTIVE CAPACITY
It is the capacity of the company under normal conditions.It is the capacity of the company under normal conditions.
The peak capacity cannot be achieved because the circumstances orThe peak capacity cannot be achieved because the circumstances or
conditions are never ideal so companies want to operate at normal capacity.conditions are never ideal so companies want to operate at normal capacity.
CAPACITY OF ATMCAPACITY OF ATM
ATM is using its 92% capacity and the remaining is the capacityATM is using its 92% capacity and the remaining is the capacity
cushion, which is for the purpose of protection in the period of excessivecushion, which is for the purpose of protection in the period of excessive
demand.demand.
The daily output of the company is round about 38,000 pounds ofThe daily output of the company is round about 38,000 pounds of
yarn on average, which is the result of about 250,000 bobbins producedyarn on average, which is the result of about 250,000 bobbins produced
daily.daily.
Capacity in terms of bags per day is about 370 bags of 20’s Count,Capacity in terms of bags per day is about 370 bags of 20’s Count,
which contain about 9000 cones produced daily.which contain about 9000 cones produced daily.
Quality Is Our Strength12
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength13
ALLAH WASAYA TEXTILE & FINISHING MILLS
FORECASTINGFORECASTING
There is no special method of forecasting in ATM. They have to makeThere is no special method of forecasting in ATM. They have to make
forecasting at the time of purchase of raw material. Forecasting all the timesforecasting at the time of purchase of raw material. Forecasting all the times
depend upon the Judgement Method that is based on past experience i.e. thedepend upon the Judgement Method that is based on past experience i.e. the
demand of last period.demand of last period.
Forecasting is always the job of directors whereas the General ManagerForecasting is always the job of directors whereas the General Manager
assists the directors about the decision of purchase. assists the directors about the decision of purchase.
Forecasting is about Forecasting is about
How much orders will come in futureHow much orders will come in future
What quantity will be coming from these orders What quantity will be coming from these orders
What will be the specification in that requirementWhat will be the specification in that requirement
So on the basis of this forecasting they purchase their raw material. IfSo on the basis of this forecasting they purchase their raw material. If
there is excessive demand than forecasted and the raw material in the stockthere is excessive demand than forecasted and the raw material in the stock
is finished then they make production by purchasing that much of rawis finished then they make production by purchasing that much of raw
material that is needed to satisfy that excessive demand. They wait for thematerial that is needed to satisfy that excessive demand. They wait for the
cotton season to purchase raw material to store for the next period. cotton season to purchase raw material to store for the next period.
Quality Is Our Strength14
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength15
ALLAH WASAYA TEXTILE & FINISHING MILLS
PURCHASE PROCESS OF ATM PURCHASE PROCESS OF ATM
The purchase process of ATM is not so much complex rather it isThe purchase process of ATM is not so much complex rather it is
quite simple. The purchase is made only one time during the cotton seasonquite simple. The purchase is made only one time during the cotton season
from November to February. They purchase inventory for the whole yearfrom November to February. They purchase inventory for the whole year
because, at that time fresh cotton is available and the prices are also lowbecause, at that time fresh cotton is available and the prices are also low
because of the abundance of cotton. They ask for the samples from differentbecause of the abundance of cotton. They ask for the samples from different
suppliers. Then there is complex analysis of those samples on the basis ofsuppliers. Then there is complex analysis of those samples on the basis of
following factors. following factors.
Short & long fibersShort & long fibers
Strength of the fiber Strength of the fiber
The sample for checking is taken from each lot of 100 bales. If theThe sample for checking is taken from each lot of 100 bales. If the
quality of the sample is according to the requirements then that supplier isquality of the sample is according to the requirements then that supplier is
selected for the purchase of raw material.selected for the purchase of raw material.
ATM doesn’t make long term contracts with suppliers because theyATM doesn’t make long term contracts with suppliers because they
want to reduce the cost, so the supplier who is giving the low cost and highwant to reduce the cost, so the supplier who is giving the low cost and high
quality is selected which may differ from time to time. At the time of everyquality is selected which may differ from time to time. At the time of every
purchase the process of checking the quality is repeated and the best one ispurchase the process of checking the quality is repeated and the best one is
selected.selected.
REQUIREMENT OF THE MILL
The daily requirement of the Mill is about one lot and every lotThe daily requirement of the Mill is about one lot and every lot
contains 100 bales of cotton. The lots for the whole year are purchased at thecontains 100 bales of cotton. The lots for the whole year are purchased at the
start of the season.start of the season.
PRICE OF PURCHASED MATERIAL
Quality Is Our Strength16
ALLAH WASAYA TEXTILE & FINISHING MILLS
The prices of cotton vary during the year. When it is in abundance theThe prices of cotton vary during the year. When it is in abundance the
prices are comparatively low and the directors are eager to purchase moreprices are comparatively low and the directors are eager to purchase more
and more cotton because of less price. The situation can be reversed whenand more cotton because of less price. The situation can be reversed when
cotton is scarce due to some reasons, then prices are very high and thecotton is scarce due to some reasons, then prices are very high and the
company doesn’t purchase in large quantity. It all depends upon the directorscompany doesn’t purchase in large quantity. It all depends upon the directors
that what decision they make during the particular season.that what decision they make during the particular season.
In this year the Company is purchasing the cotton at round about Rs.1650In this year the Company is purchasing the cotton at round about Rs.1650
per 40 Kg.per 40 Kg.
PAYMENT TO SUPPLIER
Payment to suppliers can be made in two ways Payment to suppliers can be made in two ways
Payment is made in advance in the form of check or draftPayment is made in advance in the form of check or draft
Payment can be made after the inventory is received Payment can be made after the inventory is received
It depends on the terms and conditions between the supplier and directorsIt depends on the terms and conditions between the supplier and directors
that in what way they make payment. These terms and conditions are setthat in what way they make payment. These terms and conditions are set
after the quality of the raw material is checked by the laboratory.after the quality of the raw material is checked by the laboratory.
Quality Is Our Strength17
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength18
ALLAH WASAYA TEXTILE & FINISHING MILLS
INVENTORY MANAGEMENTINVENTORY MANAGEMENT
Inventory is the stock of items held to meet the future demand. BeingInventory is the stock of items held to meet the future demand. Being
the process focus firm ATM pays a special attention to the inventorythe process focus firm ATM pays a special attention to the inventory
management. management.
The inventory of ATM mainly consists of raw material i.e. cottonThe inventory of ATM mainly consists of raw material i.e. cotton
bales and in the form of work in process. There is no concept of finishedbales and in the form of work in process. There is no concept of finished
goods inventory because company produces according to the demand. But ingoods inventory because company produces according to the demand. But in
some cases when there is a slump in the demand then finished good is storedsome cases when there is a slump in the demand then finished good is stored
otherwise not.otherwise not.
RAW MATERIAL INVENTORY
The inventory management is not so difficult. Cotton for the wholeThe inventory management is not so difficult. Cotton for the whole
year is purchased in the start of season and is pledged either in HABIByear is purchased in the start of season and is pledged either in HABIB
BANK or BANK AL-HABIB or METROPOLITON BANKBANK or BANK AL-HABIB or METROPOLITON BANK..
As the raw material comes in the factory they call a personnel fromAs the raw material comes in the factory they call a personnel from
the bank. That person examines the inventory and gives report to the officethe bank. That person examines the inventory and gives report to the office
and then the bank pays for that material and then material is placed in theand then the bank pays for that material and then material is placed in the
warehouses. It means that inventory belongs to Habib Bank. A man fromwarehouses. It means that inventory belongs to Habib Bank. A man from
Habib bank is always present at the warehouse where the inventory is placedHabib bank is always present at the warehouse where the inventory is placed
and that person is called “godown keeper”. When there is need for cotton inand that person is called “godown keeper”. When there is need for cotton in
factory, they ask to that person to give the material of their requirement.factory, they ask to that person to give the material of their requirement.
The basic purpose of keeping the raw material inventory is The basic purpose of keeping the raw material inventory is
To meet the demand of individual customer and the market as a whole.To meet the demand of individual customer and the market as a whole.
To make efficient delivery possible To make efficient delivery possible
Quality Is Our Strength19
ALLAH WASAYA TEXTILE & FINISHING MILLS
To provide a hedge against the demandTo provide a hedge against the demand
For the smooth running of the company’s operationsFor the smooth running of the company’s operations
GRADING OF RAW MATERIAL
The raw material is placed gradewise on the basis of quality. ThereThe raw material is placed gradewise on the basis of quality. There
are different grades of cotton e.g. A+, A, A-, B+, B, B-, C+, C, C-, D+, D,are different grades of cotton e.g. A+, A, A-, B+, B, B-, C+, C, C-, D+, D,
D- etc. ATM is currently operating in B+. There is computerized checkingD- etc. ATM is currently operating in B+. There is computerized checking
of raw material and after that raw material is placed under one of theseof raw material and after that raw material is placed under one of these
categories.categories.
WORK IN PROCESS INVENTORY
As there are different machines in different departments and theseAs there are different machines in different departments and these
machines have some part of raw material that is called work in processmachines have some part of raw material that is called work in process
inventory. ATM always has about 60 thousand kg of cotton in process toinventory. ATM always has about 60 thousand kg of cotton in process to
meet the requirement of 28192 spindles.meet the requirement of 28192 spindles.
SAFETY STOCK:
There is no concept of safety stock as there is already surplus ofThere is no concept of safety stock as there is already surplus of
inventory.inventory.
EOQ:
There is no concept of EOQ. It all depends upon the management thatThere is no concept of EOQ. It all depends upon the management that
how it views the changing environment.how it views the changing environment.
SPARE PARTS INVENTORY:
Quality Is Our Strength20
ALLAH WASAYA TEXTILE & FINISHING MILLS
The spare parts inventory consists of many items which are useful forThe spare parts inventory consists of many items which are useful for
the machinery in case of any machine breakdown. Major part of thisthe machinery in case of any machine breakdown. Major part of this
inventory consists of inventory consists of
Ball bearings Ball bearings
Belts Belts
BushesBushes
INVENTORY REVIEW:
The inventory review is made periodically. The period for the reviewThe inventory review is made periodically. The period for the review
is generally one month.is generally one month.
Quality Is Our Strength21
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength22
ALLAH WASAYA TEXTILE & FINISHING MILLS
PRODUCTION DEPARTMENTPRODUCTION DEPARTMENT
There is a separate production department in ATM headed by theThere is a separate production department in ATM headed by the
production manager. In production department the collaborative orientationproduction manager. In production department the collaborative orientation
of supervisors and engineers is of great importance be cause they areof supervisors and engineers is of great importance be cause they are
continuously involved in meetings and exceeding quality standards set bycontinuously involved in meetings and exceeding quality standards set by
the management.the management.
The coordination between different departments of an organization isThe coordination between different departments of an organization is
necessary for the smooth running of the business and for the fulfillment ofnecessary for the smooth running of the business and for the fulfillment of
customers orders and this phenomena is very evident in ATM. customers orders and this phenomena is very evident in ATM.
The production department of ATM is fully geared to any type ofThe production department of ATM is fully geared to any type of
changes taking place in the environment. This is backed by the goodchanges taking place in the environment. This is backed by the good
machinery capable of producing finished according to the demand ofmachinery capable of producing finished according to the demand of
customers. customers.
FINANCE OR ACCOUNTS DEPARTMENTFINANCE OR ACCOUNTS DEPARTMENT
This is the most important department of any organization because theThis is the most important department of any organization because the
record of all the transactions is maintained here. Different types ofrecord of all the transactions is maintained here. Different types of
statements are prepared to show the inflow and outflow of resources andstatements are prepared to show the inflow and outflow of resources and
these statements have key role in the functioning of the business as these tellthese statements have key role in the functioning of the business as these tell
the owners that what have they gained from their business. the owners that what have they gained from their business.
ATM has its own finance department headed by the finance managerATM has its own finance department headed by the finance manager
and is responsible for maintaining all the record of the transactions.and is responsible for maintaining all the record of the transactions.
The record of shares is also maintained in this department.The record of shares is also maintained in this department.
Quality Is Our Strength23
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength24
ALLAH WASAYA TEXTILE & FINISHING MILLS
PRODUCTION PROCESS DESIGNPRODUCTION PROCESS DESIGN
The production department of ATM consists of following stages.The production department of ATM consists of following stages.
BLOW ROOM
When the production department receives the green signal for startingWhen the production department receives the green signal for starting
production then the raw material is issued to the blow room which comprisesproduction then the raw material is issued to the blow room which comprises
of different machines that converts raw cotton from bales to rolled Laps andof different machines that converts raw cotton from bales to rolled Laps and
the impurities are also removed from raw cotton in this department.the impurities are also removed from raw cotton in this department.
CARDING SECTION
In this section Lap sheet is converted to Sliver and remainingIn this section Lap sheet is converted to Sliver and remaining
impurities & trash are removed. In this process short fibers are alsoimpurities & trash are removed. In this process short fibers are also
extracted. The sliver is then transferred to drawing section.extracted. The sliver is then transferred to drawing section.
DRAWING SECTION
In this section drawing, parallelization and mixing of fibers is done.In this section drawing, parallelization and mixing of fibers is done.
Blending of different fibers e.g. polyester and cotton is also done in thisBlending of different fibers e.g. polyester and cotton is also done in this
department.department.
SIMPLEX SECTION
In this section material from previous department is converted toIn this section material from previous department is converted to
Roving.Roving.
SPINNING SECTION
Quality Is Our Strength25
ALLAH WASAYA TEXTILE & FINISHING MILLS
In this section Roving is converted to yarn which is rolled on plasticIn this section Roving is converted to yarn which is rolled on plastic
pipe called bobbin.pipe called bobbin.
WINDING SECTION
In this section yarn on small bobbins is rolled on large bobbins calledIn this section yarn on small bobbins is rolled on large bobbins called
Cone which can be sold in the market. The yarn faults are also removed inCone which can be sold in the market. The yarn faults are also removed in
this section.this section.
PACKING
In this section the yarn is packed for delivery in large bags each 100In this section the yarn is packed for delivery in large bags each 100
pounds in weight and these bags are sold to customers. pounds in weight and these bags are sold to customers.
Quality Is Our Strength26
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength27
ALLAH WASAYA TEXTILE & FINISHING MILLS
QUALITY CONTROLQUALITY CONTROL
For a company to survive and measure its market share, maintainingFor a company to survive and measure its market share, maintaining
quality is as essential as blood in the human body. The company, whichquality is as essential as blood in the human body. The company, which
maintains quality, has edge against those, which don’t pay great attention onmaintains quality, has edge against those, which don’t pay great attention on
quality. Whether it is a manufacturing firm or a service organization, theyquality. Whether it is a manufacturing firm or a service organization, they
have to take care of quality if they want to remain in the competitive market.have to take care of quality if they want to remain in the competitive market.
ATM pays a lot of attention on quality because it has maintained itsATM pays a lot of attention on quality because it has maintained its
image as a qualitative organization. Quality is checked at every section andimage as a qualitative organization. Quality is checked at every section and
if it is found according to the standards then the next process starts otherwiseif it is found according to the standards then the next process starts otherwise
first of all that fault is removed and then the material is sent to the nextfirst of all that fault is removed and then the material is sent to the next
department. Quality check is important for the company as it allows thedepartment. Quality check is important for the company as it allows the
company to avoid process repetition so it saves Time, material, labor andcompany to avoid process repetition so it saves Time, material, labor and
customer dissatisfaction that van result in loss of market. customer dissatisfaction that van result in loss of market.
LABORATORY
ATM has its own quality control department in the form of aATM has its own quality control department in the form of a
laboratory, which is responsible for checking quality after every process.laboratory, which is responsible for checking quality after every process.
The samples from every department are sent to the laboratory and theseThe samples from every department are sent to the laboratory and these
samples are then checked. If the quality is found correct, then the material issamples are then checked. If the quality is found correct, then the material is
allowed to the next process.allowed to the next process.
QUALITY CONTROL PROCESS
The quality control process is as followsThe quality control process is as follows
Quality Is Our Strength28
ALLAH WASAYA TEXTILE & FINISHING MILLS
RAW MATERIAL PURCHASE
Purchase of qualitative raw material is prerequisite for maintainingPurchase of qualitative raw material is prerequisite for maintaining
quality standards. It is for this reason that material is inspected beforequality standards. It is for this reason that material is inspected before
purchase. Samples are taken from different suppliers and checked on randompurchase. Samples are taken from different suppliers and checked on random
basis because it is difficult to check the whole lot. If the quality is accordingbasis because it is difficult to check the whole lot. If the quality is according
to the standards and the price is appropriate then that supplier is selected.to the standards and the price is appropriate then that supplier is selected.
Complete lots are not checked for the following reasonsComplete lots are not checked for the following reasons
Time constraintsTime constraints
Cost involvedCost involved
The quality is checked on the following basis The quality is checked on the following basis
Strength of cottonStrength of cotton
Short fiber Short fiber
Long fiberLong fiber
QUALITY MAINTENANCE DURING PROCESS
After the material is issued to the production department, quality checksAfter the material is issued to the production department, quality checks
are effectively maintained at each and every step of operation. Quality mayare effectively maintained at each and every step of operation. Quality may
get out of control because of the following reasons get out of control because of the following reasons
Fault of machine Fault of machine
Fault of worker Fault of worker
So, it is necessary to check qulity so that if there is any fault, it can beSo, it is necessary to check qulity so that if there is any fault, it can be
removed. During the process following intermediate products are checkedremoved. During the process following intermediate products are checked
for qualityfor quality
LapLap
Quality Is Our Strength29
ALLAH WASAYA TEXTILE & FINISHING MILLS
SliverSliver
RovingRoving
Bobbins Bobbins
ConesCones
If any of them is not according to the standards, the process is repeatedIf any of them is not according to the standards, the process is repeated
and the faults are removed.and the faults are removed.
FINAL QUALITY CHECKS
Final checking of the finished goods is necessary because if has anyFinal checking of the finished goods is necessary because if has any
type of fault, and it is sold without checking the quality then company cantype of fault, and it is sold without checking the quality then company can
loose its market image. It is for this reason that quality of the final productloose its market image. It is for this reason that quality of the final product
(Yarn) is checked with great attention.(Yarn) is checked with great attention.
WEIGHT CHECKING
The finished product (yarn) at last stage, checked for weights thatThe finished product (yarn) at last stage, checked for weights that
should be according to the standards i.e. 100 pound per bag. If the weight ofshould be according to the standards i.e. 100 pound per bag. If the weight of
any bag is less than this standard weight, it is not sold until weight is correct.any bag is less than this standard weight, it is not sold until weight is correct.
SHADE CHECKING
Before packing the cones for sale, these cones of Yarn are checked inBefore packing the cones for sale, these cones of Yarn are checked in
Ultraviolet Rays for correct shade. If the shade is according to the standardsUltraviolet Rays for correct shade. If the shade is according to the standards
then these cones are sent to the storeroom, otherwise sent back. ATM has athen these cones are sent to the storeroom, otherwise sent back. ATM has a
separate section for checking the shades of these cones. It is a dark roomseparate section for checking the shades of these cones. It is a dark room
with tubes of Ultraviolet Rays. The cones are set at the racks and these rackswith tubes of Ultraviolet Rays. The cones are set at the racks and these racks
are sent to that room, for shade checking. are sent to that room, for shade checking.
Quality Is Our Strength30
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength31
ALLAH WASAYA TEXTILE & FINISHING MILLS
AGGREGATE PLANNINGAGGREGATE PLANNING
ATM is a process focus organization and it responds to the customer’sATM is a process focus organization and it responds to the customer’s
orders. They make planning based on the previous cycle. They are operatingorders. They make planning based on the previous cycle. They are operating
according to the “according to the “Make to order strategyMake to order strategy”.”.
COMPETITIVE PRIORITIES
Competitive priorities are the company’s unique characteristics thatCompetitive priorities are the company’s unique characteristics that
lead to success of the company. Every organization has some competitivelead to success of the company. Every organization has some competitive
priorities, which shows the progress of the company.priorities, which shows the progress of the company.
ATM is operating according to the following competitive priorities ATM is operating according to the following competitive priorities
Low costLow cost
On time deliveryOn time delivery
Consistent qualityConsistent quality
PLANNING
Planning is made by directors with the help of different managers.Planning is made by directors with the help of different managers.
PLANNING OF WORKERS
It includes the planning of officers, supervisors and workers. PlanningIt includes the planning of officers, supervisors and workers. Planning
of officers is dependent upon the owners that how much they need andof officers is dependent upon the owners that how much they need and
according to the need this staff is recruited and the duties are assigned on theaccording to the need this staff is recruited and the duties are assigned on the
basis of their skills.basis of their skills.
Every department is headed by a supervisor who is responsible for everyEvery department is headed by a supervisor who is responsible for every
thing happening in the department.thing happening in the department.
Workers are allocated according to the machines and workload.Workers are allocated according to the machines and workload.
Quality Is Our Strength32
ALLAH WASAYA TEXTILE & FINISHING MILLS
PRODUCTION PLANNING
Production planning is done by production manager on the followingProduction planning is done by production manager on the following
basisbasis
Requirement of the marketRequirement of the market
Availability of raw materialAvailability of raw material
Prices of raw materialPrices of raw material
Prices of end productPrices of end product
Aggregate planning is made considering the following factorsAggregate planning is made considering the following factors
1.1. Cost of production of new order Cost of production of new order
2.2. Time to completeTime to complete
3.3. Profit earningProfit earning
Quality Is Our Strength33
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength34
ALLAH WASAYA TEXTILE & FINISHING MILLS
SALE OF THE FINISHED PRODUCTSALE OF THE FINISHED PRODUCTATM is selling its Yarn to the domestic market like in Faisalabad andATM is selling its Yarn to the domestic market like in Faisalabad and
Karachi. There are some brokers who are the mean of contact betweenKarachi. There are some brokers who are the mean of contact between
supplier and the buyer. When any weaving mill needs yarn, they contact thesupplier and the buyer. When any weaving mill needs yarn, they contact the
brokers to find the appropriate supplier. These brokers have contacts withbrokers to find the appropriate supplier. These brokers have contacts with
the mills which are producing yarn, and when they have order to purchasethe mills which are producing yarn, and when they have order to purchase
they take samples from different suppliers and send these samples to thethey take samples from different suppliers and send these samples to the
buyer who after examining them order the broker to purchase on their behalfbuyer who after examining them order the broker to purchase on their behalf
if the quality is according to their standards. if the quality is according to their standards.
ATM is selling its finished good at a rate of Rs.56 per pound andATM is selling its finished good at a rate of Rs.56 per pound and
earning high profits. The last year’s profit was Rs.57, 735,646, which isearning high profits. The last year’s profit was Rs.57, 735,646, which is
greater than the profit of the previous year.greater than the profit of the previous year.
Quality Is Our Strength35
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength36
ALLAH WASAYA TEXTILE & FINISHING MILLS
MACHINE TYPESMACHINE TYPES
There are different machines in the factory, which are purchased fromThere are different machines in the factory, which are purchased from
different countries and have different names. ATM has two production unitsdifferent countries and have different names. ATM has two production units
in which different types of machines are installed.in which different types of machines are installed.
UNIT 1 UNIT 2
BLOW ROOM: ChinaChina Trutzseller GermanyTrutzseller Germany
CARD: Toyoda JapanToyoda Japan Toyoda JapanToyoda Japan
DRAW FRAME:DRAW FRAME: Toyoda JapanToyoda Japan Toyoda JapanToyoda Japan
SIMPLEX:SIMPLEX: Toyoda JapanToyoda Japan Toyoda JapanToyoda Japan
RING: Toyoda JapanToyoda Japan Reiter SwissReiter Swiss
MATCH CONER: Murata JapanMurata Japan Murata JapanMurata Japan
Quality Is Our Strength37
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength38
ALLAH WASAYA TEXTILE & FINISHING MILLS
PERFORMANCE OF THE COMPANYPERFORMANCE OF THE COMPANY
The mill was operated to produce polyester cotton blended yarn throughoutThe mill was operated to produce polyester cotton blended yarn throughout
the year. The market for the yarn remained favorable during the year. Thethe year. The market for the yarn remained favorable during the year. The
prices of cotton however mostly remained sub-dued in the local market dueprices of cotton however mostly remained sub-dued in the local market due
to its slump in the international market. By the grace of Almighty Allah, theto its slump in the international market. By the grace of Almighty Allah, the
company earned a Net After Tax Profit of company earned a Net After Tax Profit of Rs.57, 735,646Rs.57, 735,646 for the yearfor the year
20002000 compared to the Net After Tax Profit of compared to the Net After Tax Profit of Rs.15, 331,281Rs.15, 331,281 last year.last year.
The Mill was operated for 1,091 shifts during the year. The overall actualThe Mill was operated for 1,091 shifts during the year. The overall actual
production when converted to 20’s Count came to 11,130,950 Kgs comparedproduction when converted to 20’s Count came to 11,130,950 Kgs compared
to 10,229,596 Kgs on the same basis, last year. This shows the perpetualto 10,229,596 Kgs on the same basis, last year. This shows the perpetual
growth of the company.growth of the company.
Quality Is Our Strength39
ALLAH WASAYA TEXTILE & FINISHING MILLS
Quality Is Our Strength40
ALLAH WASAYA TEXTILE & FINISHING MILLS
EVALUATION OF THE COMPANYEVALUATION OF THE COMPANY
By studying the organization I come to the result that ATM is theBy studying the organization I come to the result that ATM is the
company which is performing according to the standards set by the owners.company which is performing according to the standards set by the owners.
It is producing the finished goods in a qualitative form and meeting theIt is producing the finished goods in a qualitative form and meeting the
requirements of its customers. It has many satisfied customers, which canrequirements of its customers. It has many satisfied customers, which can
guarantee its continued performance. Inspite of the fact that it is located inguarantee its continued performance. Inspite of the fact that it is located in
the residential area, but it is not disturbing the domestic life because itsthe residential area, but it is not disturbing the domestic life because its
plants are covered and any type of noise is not coming out of the premises ofplants are covered and any type of noise is not coming out of the premises of
the factory. As a result the behavior of the community is favorable towardsthe factory. As a result the behavior of the community is favorable towards
the company.the company.
For its workers, it gives them many facilities like high salaries,For its workers, it gives them many facilities like high salaries,
bonuses, and compensation for any loss and many more. So all types of staffbonuses, and compensation for any loss and many more. So all types of staff
are quite satisfied which is also a plus point for the company. are quite satisfied which is also a plus point for the company.
Quality Is Our Strength41
top related