Sunteți pe pagina 1din 21

Letter of Acknowledgement

Institute of Business Management Korangi Creek, Karachi-75190, Pakistan UAN (9221)111-002-004, Fax: (9221) 509-0968
Http://www.iobm.edu.pk

June 22, 2012 Dear Reader, It is an honor for us to prepare the report on Knitting unit of Ismail Hameed & Sons. which was assigned to us by our respected teacher Mr.Noman Nasir. We would like to thank Mr. Noman Nasir for providing us the guidance and the skills all along in order to materialize our content for the report. It was a pleasure creating such a report, on a topic so informative and practical, and which will help us in our practical life.

Sincerely yours, Muhammed Yasser Samar Shehzad Asna Jawed Saqib Dhari

Letter of Transmittal

Institute of Business Management Korangi Creek, Karachi-75190, Pakistan UAN (9221)111-002-004, Fax: (9221) 509-0968 Http://www.iobm.edu.pk June 22, 2012 Mr. Noman Nasir Lecturer, Total Quality Management, IOBM Dear Mr.Noman Nasir, Here is the report on defects in knitting which you authorized us in this course. The purpose of the report is to understand the concept of Total Quality Management and its SPC tool and apply those concepts to assist us in the making of this report. In conducting this study, we used data from production department of KEY TEX ISMAIL HAMED & SONS. Sincerely yours, Muhammed Yasser Samar Shehzad Asna Jawed Saqib Dhari

Executive Summary
Ismail Hameed & sons is a manufacturer, importer and exporter of synthetic yarn knitted products, it began its operation in 1893 in Burma , the company than moved to Bombay and finally Karachi, and earned a great name in export field, the company entered the export field in 1969 and owe much to their managing partner -Late Mr. A. Sattar Ismail Moten (justice), who was instrumental to build-up a solid edifice which has earned the firm , a good name in overseas markets and also due to his untiring efforts, the firm has been able to receive FPCCI awards more 7 times. The firm has shown in recent years consistency in the field of export performance, maintaining overall turn-over to increasing level and this can be termed satisfactory when viewed in the context of currency exchange, trading conditions and the economic upheaval in various overseas countries. The has its own WARP KNITTING and RASCHEL machine unit under the name and style Keytex Industries in S.I.T.E. area, Karachi. This facility enables the firm to undertake manufacturing of sophisticated Items for export comprising, polyester, viscose & Nylon Knitted Net, Ladies scarves, Dupattas , Metallic & viscose embroidered veils, and other fabrics made of synthetic yarn, which are exported against confirmed & Irrevocable L/Cs under its registered Trade mark KEY TEX Brand and this indicates companys popularity and reputation in the overseas markets. The major export of the companys products is mainly in Djibouti, Somalia, Malaysia, Dubai, Saudi Arab, Mauritius, Egypt and South Africa. The firm also handles export of cotton textiles, bed sheets and pillow covers, voile, cotton bags, fitted bed sheets, and is also engaged in import of synthetic Yarn form China, Malaysia, and other countries.

Overview of the industry


The textile and apparel industry is often considered the backbone of the Islamic Republic of Pakistans economy. In that south Asian republic which shares borders with China to the north, India to the east, and Iran and Afghanistan to the west, as well as the Arabian Sea to the southwest cotton textiles and apparel historically were the focus of the industry, mainly because of the large amount of cotton grown in the country. In fact, Pakistan currently ranks fourth among world cotton producers and third among world cotton consumers having produced 9.9 million 480-pound bales and consumed 11.8 million 480-pound bales in the 2005/2006 marketing season according to the December 2006 US Cotton Market Monthly Economic Letter of the US Department of Agriculture and Cary, N.C.-based Cotton Incorporated.

However, the US International Trade Commission notes in its 2003 report, Textiles and Apparel Assessment of the Competitiveness of Certain Foreign Suppliers to the U.S. Market, that Pakistani textile manufacturers recently have diversified their product offerings to include man-made yarns, fabrics and apparel as the result of shifts in global demand for cotton-blend apparel. Other recent economic factors, such as the end of textile quotas in 2005, have caused Pakistans textile industry to continue to adapt in an effort to remain globally competitive.

TEXTILE INDUSTRY STRUCTURE


According to the post-show report of IGATEX Pakistan 2006 which took place in Karachi, Pakistans largest city the republics textile and apparel industry in 2006 consisted of ginning, spinning, manmade fiber, weaving, finishing, apparel, terry towel, tarpaulin and canvas, and knitwear machinery sectors. The textile and apparel industry as a whole employed approximately 40 percent of total industrial workers and accounted for 46 percent of total manufacturing. There were 1,221 ginning units, featuring an installed capacity of 20 million bales of cotton. The spinning sector comprised 408 spinning units, with an installed capacity of 157,143 rotors; and 50 composite units, with an installed capacity of 10.1 million spindles. The countrys 10 man-made fiber units had an installed capacity of 660,000 tons. While the shows organizers did not detail the number of weaving units in their report, the Pakistani governments Board of Investment reported 124 large and 425 small weaving units, with a total production capacity of 4.4 billion square meters of fabric. The show report also did not include the installed capacity for the 106 finishing units in the organized sector and 625 finishing units in the small-

scale sector. However, the investment board noted a total finishing capacity of 4 billion square meters. With regard to finished textile goods, the countrys 5,000 apparel units featured an installed capacity of 450,000 sewing machines, show organizers reported. The installed capacity for Pakistani knitwear manufacturers numbered 12,000 machines. Tarpaulin and canvas production capacity totaled 100 million square meters, while installed capacity of terry towels totaled 7,500 looms. In contrast to IGATEX Pakistans post-show report, the International Textile Manufacturers Federation (ITMF), Switzerland, in its 2005 International Textile Machinery Shipment Statistics report, noted the countrys installed spinning capacities reported in 2004 9.7 million short-staple spindles, 35,000 long-staple spindles and 150,700 open-end rotors. In comparison to other industries in Asia and Oceania, Pakistans short-staple capacity that year ranked third behind mainland China and India, in that order while open-end capacity was fourth following mainland China, India and Uzbekistan. Long-staple capacity in the republic came in 11th, tying with Malaysia. Installed weaving capacities in 2004 reported to ITMF totaled 24,000 shuttles less looms, 225,000 shuttle looms and 50,000 filament weaving looms. The shuttle less capacity that year ranked sixth among other industries in Asia and Oceania; shuttle capacity was second, behind mainland China. Likewise, Pakistans filament-weaving capacity came in second, following mainland China and tying with Thailand. On the other hand, the Karachi-based All Pakistan Textile Mills Association (APTMA), a national trade association promoting 360 textile spinning, weaving and composite mills in the organized sector, reported the total installed capacity for its member mills numbered 8.8 million spindles, 65,580 rotors and approximately 10,000 looms. There were 292 APTMA spinning mills, 40 weaving mills and 28 composite mills, which featured facilities that can handle a variety of processes under one roof. Among the products produced in APTMA mills were open-end and spun yarn; grieve, printed and dyed fabrics; and bed linens

ECONOMIC ROLE
While the Pakistani manufacturing sector as a whole in 2005 accounted for approximately 25 percent of the countrys estimated gross domestic product (GDP) of US$395.2 billion on a purchasing-powerparity basis, the textile industrys diverse product offerings accounted for 11 percent of the countrys GDP, as reported in the aforementioned IGATEX Pakistan report. In addition, approximately 60 to 70 percent of total exports came from the production of cotton textiles and apparel, which are considered Pakistans largest industries. The Business Recorder, a Karachi-based financial newspaper, reported in July 2006 that the textile industrys value addition accounted for more than 9 percent of the GDP, and

that the industry had a market share of approximately 30 percent in world yarn trade and 8 percent in cotton cloth. According to the World Bank, which cited Pakistans Federal Bureau of Statistics, exported textile products were worth $2.5 billion in the first quarter (Q1) of fiscal year (FY) 2007, which began July 2006. That figure represents a drop of 10.3 percent from Q1 FY06, but an increase of 22.2 percent over Q1 FY05. The top three exports of the textile industry in Q1 FY07 were cotton yarn, knitwear and bedding. Cotton yarn exports, which were worth $303 million in Q1 FY06, grew by 19.5 percent in Q1 FY07 to $362 million. On the other hand, exports of knitwear worth $526 million in Q1 FY06 and bedding worth $555 million in Q1 FY06 decreased in Q1 FY07 by 10.1 percent and 19.1 percent, respectively. The Business Recorder further noted that Pakistan counted the European Union and the United States as the largest and second-largest export markets, respectively, for its textile and apparel products. Pakistan captured a 3-percent market share in the EU in 2005, down 0.6 percent from 2004. The countrys share of the US market, however, increased slightly, by 0.2 percent, in 2005. According to the US Department of Commerce Office of Textiles and Apparels Dec. 7, 2006, Major Shippers Report, Pakistans total textile products imported into the US market captured a 7-percent share in squaremeter equivalents (SMEs) and a 3.5-percent share in dollars. Carded cotton yarn and sateen fabric were Pakistani products that had a significant share of imports into the US market, both in terms of dollars and SMEs. Additionally, Pakistani specialty weave fabric, with 58.8 percent; cotton bedspreads/quilts, with 47.6 percent; cotton sheets, with 41.8 percent; and cotton pillowcases, with 40.4 percent, all held a significant share of imports in their respective categories in SME terms.

RISING ABOVE CHALLENGES


With the recent decline in textile exports and a record-setting trade deficit that reached more than $2.1 billion in the first two months of FY07, as reported by Dawn a Karachi-based newspaper Pakistans textile industry currently is confronting new economic challenges. Dawn reported in November 2006 that the textile industry including the spinning, weaving, value-added apparel and made-up, and home textile sectors had begun to downsize its workforce. A hike in interest rates in early 2005 by the countrys central bank led to increases in export refinancing, long-term commercial and industrial credit, and, ultimately, rising production costs, according to Dawn. Furthermore, the newspaper noted Pakistani textile exporters were facing steep price competition from manufacturers in China, India and Bangladesh.

In December 2006, the federal government announced it would provide approximately $720 million in aid to the textile sector, according to Pakistans Ministry of Textile Industry. Furthermore, a recent press release from the ministry stated that a meeting was held in late December to analyze issues affecting the textile industry, such as the international trading regime, factor prices and productivity parameters. In a sector-by-sector analysis, top trade officials reviewed each sectors strengths and weaknesses, with the goal of developing a long-term strategy, and increasing efficiency, cost effectiveness and cost competitiveness. Also discussed was the fact that while Pakistani textile producers face increasing cost pressures, competitor countries in the region enjoy subsidies and support. As a result, there is an offset trade balance.

Despite these challenges, there is still hope that the textile industry can rise above current and future challenges and continue to play an important role in Pakistans economy. In a September 2006 speech to traders, industrialists and ginners, Naeem Mukhtar, president of Lahore, Pakistan-based Allied Bank Ltd. (ABL), said he believed the volume of textile exports would reach $50 billion by 2016, and those exports could help develop Pakistans economy. According to the Business Recorder, Mukhtar called for the replacement of outdated machinery and infrastructure, especially in the ginning sector, and he said ABL would offer to advance five-, seven- and 10-year loans with a reasonable markup in order to assist manufacturers in purchasing new machinery. New industry and value addition are key in competing against China and India. Textile industry in Pakistan contributes more than 50% of the countries total exports. During 2008, of the total exports from the country, textile exports constituted to $7.21 billion USD, and garment exports were worth $3.25 billion USD. It has successfully proved its consistency in maintaining its export volume.

IMPORTANT FIGURES
Textile sector's topline witnessed a growth of 17 percent Inflation to record at Rs 177 billion in 200809. The main reason behind the surge in sales was rupee depreciation (20 percent in FY09). Amid higher revenues and lower cotton prices, gross margins improved by 190bps Inflation to 16 percent in the year under review.

However, long power cuts and rising interest rates negated the impact of the topline on the reported profits. The 6-month KIBOR rate surged up by 380bps, which in turn increased the finance, costs by 50 percent resulting in a decline of 57 percent in the sector's earnings to Rs. 2 billion against Rs. 4.7 billion a year ago.

Despite a 13 percent jump in revenues to Rs. 42 billion and 110bps improvement in gross margins to 12.7 percent, spinning segment's earnings turned negative posting a loss of Rs. 962 million. This was in sharp contrast to profits of Rs. 78 million recorded in 2007-08. Surge in financial charges, up 53 percent to Rs. 3.6 billion completely wiped out the growth in topline and caused a severe dent in segment's performance in the said year.

Despite an increase of 16 percent in net sales, weaving segment remained in losses in 2008-09. This increase in sales was undone by higher financial charges, up 13 percent to Rs. 778 million. Hence, the segment posted net loss of Rs. 111 million compared to a loss of Rs. 389 million a year before.

PROCESS FLOW DIAGRAM

The process begins with import of yarn and then warehousing , once the yarn is imported, the required yarn is then warped into beams of respective sizes such as 7 14 21 and then the beams are loaded onto the machines for threading and knitting, once the grey cloth (raw cloth) is prepared ,it is sent to dyeing factory, where it is bleached first then it is dyed according to the customers requirement then it is processed through heat set and standardized which is use to finalize the width and shrinkage of the cloth after which the cloth is brought back to the knitting factory where it is cut according to the customer requirements and packed respectively.

Production Data

The data had been taken for 15 days and the sample size 10 machines per day. Production per day of all 10 machines is approximately 500 kg of cloth. The number of defects each day was recorded and is shown in the table above. The defect ratio is calculated by dividing the defects of each day with the production of that particular day. Hence the overall production in kg for the 15 days from these 10 machines is 7500 kg of cloth and the number of defects recorded are 1382. In the subsequent part of the report an analysis will be done to find out what the cause of these effects are. This will be done by using the various SPC tools such as P-Chart, Pareto Chart, R chart, Cause and effect (fishbone) diagram

P-CHART

CL=0.184 LCL=0.1322 UCL=0.2363 U1SL= 0.2015 L1SL= 0.1669 U2CL= 0.2189 U2SL= 0.1496

R CHART

14 12 10 8 6 4 2 0 0 5 Proportion of E LCL Central line 10 UCL 15

No. of samples

R-CHART ANALYSIS

INTRODUCTION
Statistical quality control,

the R chart is a type of control chart used to monitor a variables data when samples are collected at regular intervals from a business or industrial process. The chart is advantageous in the following situations:

1. The sample size is relatively small (say, n 10 and s charts are typically used for larger sample sizes) 2. The sample size is constant 3. Humans must perform the calculations for the chart The "chart" actually consists of a pair of charts: One to monitor the process standard deviation (as approximated by the sample moving range) and another to monitor the process mean, as is done with the and s and individuals control charts. The and R chart plots the mean value for the quality characteristic across all units in the sample, , plus the range of the quality characteristic across all units in the sample as follows: R = xmax - xmin.

ANALYSIS & SOLUTION

By analyzing the R-chart graph it is clear that the process is stable as it is between the upper (12) and lower (0.9) control limits. When we look at the middle Upper (10) and Lower (2.7) limits, then again all the values are under these limits but point 10 has a value of 10 which is exactly at the 2nd upper limit, so it needs to be analyzed. While analyzing the lowest upper (8.2) and lower (4.6) limits then the process doesnt in the stable condition. Because there are some readings such as point 4, 10, 12 and 13 they are not in these limits. These points are outside the lowest limit limits. After analyzing all the points and their stability, now we will point out those points which have the higher range or give more variation in the process. Points 4, 10, 12 and 13 shows the greater range and variance as compared with other point, so this variance is minimized so that to make it more stable and enhance the productivity. Now we analyze that why other points are stable and why they are showing less variability in the process, after analyzing those we then implement the same environmental and other conditions to reduce the variability in the less stable points. Our main focus is going towards the Continuous improvement, so by reducing or minimizing the variability in all the points we can make our processes stable.

Reengineering or rework is carried out or we can have even more stable equipment and machinery. 6.4 is the average range of the process so our efforts must be focused on making all the values of points as near as possible.

Pareto Analysis
[ISMAIL HAMED & SONS.]
[KNITTING DEFECTS] [14/12/2010]

[42]

The first 3 Causes cover 90. % of the Total Defects


Cumulative Percentage Cutoff:

90%

# Causes
1 2 3 4 needles sheber thread/yarn electricity

Defects
621 345.5 276 138

Cumulative%
45.0% 70.0% 90.0% 100.0%

PARETO DIAGRAM ANALYSIS


INTRODUCTION The Pareto Chart or Pareto Diagram, named after the famous economist Vilfredo Pareto (1848-1923), is a common tool for quality control and is used as part of a Pareto Analysis to visually identify the most important factors, most occurring defects, or the most common problems, or in other words "the vital few". The Pareto Principle, or 80-20 Rule, is a general rule-of-thumb or guideline that says that 80% of the effects stem from 20% of the causes. So the same situation can also be seen in the keytexs Pareto diagram, Analysis and solution of the keytexs Pareto diagram is given as under. ANALYSIS Basically this pareto diagram shows the Cause & Effect relationship in regard with the defects in the knitting process. There are basically four main reasons which are responsible for the defects in the knitting process Needles Sheber Thread/Yarn Quality

Electricity

Needles, Sheber and Thread/Yarn quality are the Vital Few and Electricity is the Useful Many. It means that knitting defects are mainly due to these 3 factors. 45% of defects are due to poor quality of knitting needles, 25% are due to Sheber and 20% defects are due to the improper quality of the threads/yarn. All these 3 factors are Vital Few and give 90% defects in the knitting process. Inadequate Electricity supply or Load shedding gives 10% defects in the knitting process and is considered as the Useful Many, as it has got a minor impact to the defects. SOLUTION This is recommended for the keytex to minimize all its Vital Few Causes or eliminate these in order to increase productivity of grey fabric without any defects or very less defects in the knitting process. The biggest cause of defects in the knitting process is the poor Quality knitting needles, these needles should be replaced by having new, modern, sophisticated and high quality needles from best available supplier or by importing it. Sheber Thread or yarn are the basic inputs used for manufacturing the grey fabric, due to the poor quality of the thread and yarn, they cause 20% defects in knitting process, so high quality thread and yarn are needed to be supplied for the company from a reputed supplier, who ensures the quality of the yarn/thread and change the current supplier. When you make improvements and eliminate the vital few then 90% of the knitting defects are eliminated jus by making improvement in 3 main causes.

CAUSE AND EFFECT DIAGRAM

Cause

Effect

Equipment
sheber needle: low quality medium quality machinery

Process
warping

People
labour shortage variable pay

scheduling problem strikes/holidays yarn shortage

low production
quality of yarn dust/rust electricity lack of control co-ordination

decentralized

Materials

Environment

Management

FISHBONE-DIAGRAM ANALYSIS

INTRODUCTION Ishikawa diagrams (also called fishbone diagrams, cause-and-effect diagrams or Fishikawa) are diagrams that show the causes of a certain event, created by Kaoru Ishikawa in 1990. Common uses of the Ishikawa diagram are product design and quality defect prevention, to identify potential factors causing an overall effect. Each cause or reason for imperfection is a source of variation. Causes are usually grouped into major categories to identify these sources of variation. The categories typically include:

PEOPLE: Anyone involved with the process PROCESS: How the process is performed and the specific requirements for doing it, such as policies, procedures, rules, regulations and laws EQUIPMENT: Any equipment, computers, tools etc. required to accomplish the job MATERIALS: Raw materials, parts, pens, paper, etc. used to produce the final product MANAGEMENT: Planning, organizing and controlling the process that are used to evaluate its quality ENVIRONMENT: The conditions, such as location, time, temperature, and culture in which the process operates

ANALYSIS
All the causes related to People, Process, Equipment, Material, Management and environment lead to the Low Production of the fabric. People causes which effect the production are Skilled Labor Shortage, Variable Pay System and lack of labor availability in the Holidays and Strikes etc. Process causes responsible for low production include Improper Warping process and improper process scheduling. Equipment causes that effect negatively the production are Low quality Needles, Sheber and some other old machineries. Material affecting negatively the productivity is the poor quality yarn and the yarn shortage. Management is decentralized, lack of coordination and control over the processes leads to the low operations.

Environmental issues such as electric load shedding, failure and dust and rust cause the low production.

SOLUTION

People causes can be reduced by motivating them by making good compensation plans, providing them good flexible working environment. You can hire new skilled labor or you can train them. Processes must be improved by replacing the old machines of warping to enhance the production. All processes must be rescheduled by using an integrated information system. Production must be considered as a project and is to be managed. Equipment is needed to be replaced or maintained as sheber machine and needles are not good in qualities which directly affects the production. Material affecting negatively the productivity is the poor quality yarn and the yarn shortage, so safety material is also be kept in the warehouses so that it can be managed when there comes any yarn shortage in the market, supplier can also be replaced. Management is decentralized, lack of coordination and control over the processes leads to the low operations. This can be settled when you introduce the participation management, employee involvement, and integrate all the departments and functions together to have it centralized. Environmental issues such as electric load shedding, failure and dust and rust cause the low production can be solved when you make any good agreement with an electric supply body or you can also install the electric power plant. You can save your machinery from dust and rust by keeping them under the covered area and are monitored and maintained on regular basis.

RECOMMENDATIONS

The company should install automatic gas generator because currently it faces sudden stoppages due to power failure, which causes disruption in the production process. With automatic generators output will not suffer and the process can go on smoothly One reason for defects is the medium to low quality needles that are being used in the production process. These needles are of China. In order to minimize the defect rate the company has an option of purchasing German needled that are of the finest quality but are highly expensive as well. Hence it is important that the company first looks at the cost effectiveness of using these needles The labor is rewarded on a per kg production basis. It can further give incentives to the labor for detection and prevention of defects by correcting the defect as soon as it occurs so the overall production is not negatively effected. These incentives can encourage them to be more attentive and quick in detecting any faults as they occur in the production line. Beams should be loaded or carried from inside the building. This is to prevent it from dust that causes either the yarn or the needle to break , thereby causing disruption in the process. High quality yarn i.e A+, should be used mostly for customers who are looking more for quality rather than economy The process is mostly decentralized in that they take place in various parts of the city. This includes yarn storage for which time is wasted on getting the yarn to the manufacturing area. It would be better to have yarn storage near the warping area as it will save time and lead to more production

S-ar putea să vă placă și