report on operation of allah wasaya textile mills

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


DEDICATION DEDICATION

This report is dedicated to my

Who always pray for me to succeed in every field of life.



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



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.



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.



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



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



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.



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.



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.



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



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.



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



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:



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.



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.



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



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 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



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



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.



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.



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



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.



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



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.



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.


report on operation of allah wasaya textile mills

Documents

allah wasaya company

marketsthe company

spindlesthe company

private limited company

almighty allah

muhammad qasim3 quality

muhammad khalid

following banks habib