Presented By:

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

Sameia Farhat Saima Kausar Fatima Mazhar Sonia G.M Sadia Zia Sehar Iftikhar
BBA (Hons) 7th Semester

Department:

University Of Education, Bank Road Lahore.

An Overview:
K.M.L has grown from a cotton export house into the premier business group of Pakistan with 5 listed companies. Concentrating on 3 core businesses: Textiles Cement Power Generation.

K.M.L is considered to be at par with multinationals operating locally in terms of its quality products and management skills.

Contents:
1. Introduction of the organization 2. Mission statement 3. Vision statement 4. Quality certification 5. Divisions of KTML 6. Products, Services and Operations 7. KTML Departments 8. Productivity variables of KTML 9. Quality policy10. Strategic OM decisions 11. Time based competition 12. Current capacity 13. Distribution channels 14. Service design 15. Forecasting 16. Profitability analysis 17. SWOT analysis 18. PEST analysis

INTRODUCTION

The Kohinoor Maple Leaf Group was born from the trifurcation of the Saigol group of companies. KML comprises of: 1. KTML 2. MLCF

1. CEMENT

Third largest cement factory in Pakistan. Was set up in 1956 as a Joint Collaboration.

Strategically located at Daudkhel.

Cont

Acquisition under the privatization policy of the government of Pakistan in 1992.

Presently Kohinoor Mills Ltd is the holding company for maple leaf cement.

2. Textile

KTML was incorporated in 1987.

Initially set up as a weaving project with 256 looms.

Aggressive expansion and modernization KTML has emerged into a fully vertically integrated home textiles company.

Cont
The company has a diverse customer base with sales in both the local and export markets. The entire manufacturing process from warping to fabric inspection is monitored through an on-line process control system from BARCO.

Kohinoor Industries has always adhered to high ethical standards and strived to be the industrys preeminent manufacturer.

KTML Mission Statement Comprises of Four Parts.

Vision Mission Values Principles

Kohinoor Industries Vision is To be a worldclass company as defined by the customers we serve.

The Kohinoor Textile Mills Limited stated vision is to:

Achieve and then remain as the most progressive and profitable Company in Pakistan in terms of industry standards and stakeholders interest.

We will exceed our customers expectations in quality, service, and value; continually increase shareholder value; and provide growth opportunities for our people.

Honesty, Integrity, and Hard Work.

People, Relationships, Customer, Citizenship, Innovation, and Results.

People:
Kohinoors philosophy is to attract, develop, and retain the best people.

Relationships:
We strive to establish and maintain honest relationships with all stakeholders in the company.

Customer:
We recognize that our customers and our ability to exceed their expectations are critical to our total success

Citizenship:
In the communities in which we live and the industry in which we work, we will actively strive to contribute to a better environment for everyone.

In an ever-changing marketplace, new products, services, and technologies are the lifeblood of our business.

CORPORATE MISSION:
Put the customer first always. Be flexible to the customers needs. Adhere to the highest quality standards. Think innovatively but make informed business decisions. Deliver results

QUALITY CERTIFICATION
HEMA Certification Certificate of Approval

DIVISIONS OF KTML
Kohinoor Mills has Five Divisions: 1. Kohinoor Weaving Division 2. Kohinoor Hosiery Division 3. Kohinoor Dying Division 4. Kohinoor Genertek Division 5. Kohinoor Apparel Division

Products:
Kohinoor Dyeing product range comprises of dyed Cotton, Poly Cotton, Lycra, Poplin, Canvas, Twill, Sateen and Dobby Fabric.

Services:
After sale services are clearly defined at the time when Kohinoor take orders from the customers.

PLANT DETAILS
Capacity 3 million meters per month Fabric weight Range: 100gsm 500gsm Fabric cotton/poly cotton/Lycra Blends

OPERATIONS
The development operations carried out in a systematic manner. Customers requirements are received at Kohinoor. PPC team makes a comprehensive plan. After the approval, the production is started. Quality Assurance activities are performed before delivering the product to the customer.

Production and Operation Management Departments

Marketing Department

Finance Department

Production Department

Marketing Department
It is engaged in getting orders from customer and fulfills the order according to the requirements of the customer by the follow up of the entire departments.

Finance Department
Current transaction of cash. Future forecasting of cash. Preparation of the books of account for the daily purpose as well as for the audit purpose.

Production Departments
1. Knitting department 2. Linking department 3. Bleaching department 4. Boarding department 5. Packing department

Knitting Department
The knitting department is the main department of the production which is used to knit the socks according to the requirement and send to the WIPC department.

Activities of the Knitting Department

Make The Style wise Program Loud The Program Specification Of Yarn Making Production Checking Of The Quality

Activities of the Knitting Department

Maintenance Of The Machines Usage Of Parts Of Machines Checking The Efficiency Sending The Production To WIPC

Linking Department
After the production is send to the WIPC it received by the linking department and start its working according to the specification of the planning department.

Activities of the Linking Department

Received The Production Linking Of Socks Turning Procedure Transfer Production To WIPC

Reports of Linking Department

Daily linking department report Turning report Efficiency report Needles report Monthly reports Yarn consumption report

Bleaching and Dying

Bleaching and dying department gets the production from WIPC department, bleach and dye it according to the requirement of the customer.

Reports of Bleaching Department

Daily production report Comical consumption report Efficiency report of machine

Bleaching Procedure
The worker lode the socks on the conveyer of specific quantity which is 45kg and machine automatically get the socks; bleach it according to the specification given to it by the operator of the machine.

Boarding Department
The boarding department is engaged in the activities of pressing the socks after bleaching and online packing of socks in the department.

Activities Performed In The Boarding Department

Receiving of socks from the bleaching Department.
Setting of the Machines. Checking Of The Quality. Quantity Packed. Compensation Report. Getting The Packing Material. Returning Of Rejected Production. Solve The Quality Problems.

Packing Department
There are two method of packing, first one is on line packing and second one is off line packing. The off line packing is made by the girls hire by the company and on line packing is made in the boarding department when the socks are pressed.

Shipping Department
Shipping department is basically deals with the shipment of goods to the customers.

Documents Used By Shipping Department for Exports

Packing List. Commercial Invoice. Certificate Of Inspection. Bill Of Lading. Shipping Documents. E-Form. Bill Of Exchange. Certificate Of Shipment. Shipping Order. Cart/ Lorry Ticket. Shut Out Advice.

Quality Assurance Department

Quality Assurance precedes the samples by knitting, linking, dyeing and boards it according to the requirement given to them and checks it step by step at each place and at the end it reached to the marketing department which sends it to the customer.

Production Planning & Control (P.P.C) Department

P.P.C is the main and the most involving department because it manages the other departments activities, as the order been placed and been approved by the customer through the marketing department.

Productivity Variables
Labor Capital

Management

Labor
Kohinoor believe that our people are our most valuable asset. We view human resources as a competitive advantage and therefore ensure that only motivated and professionally qualified people are employed here.

Capital
The industry contributes around 46% to the total output produced in the country. In Asia, Pakistan is the 8th largest exporter of textile products.

Management
Management information system is used at management level of the KTML. Managers used a proper system to manage the activities involved in their projects and other business activities.

Kohinoor Quality Policy:

1. 2. 3. 4. Customers Satisfaction Zero Defect Never Ending improvement Total Quality Management

Kohinoor Strategic OM Decisions:

1.Goods Design: Design usually determine the low cost and upper limit of quality. Design make according the requirements of customer

2.Production Decision:
Kohinoor decide perform its responsibility for the best production of the organization. Engaged in getting orders from customer Produce the order according to the needs of the customer

3.Capacity Design:
Company determines capacity and capital commitment of company basic cost structure. Kohinoor has a art dye house equipped with European and Japanese technology Average weight range of 75gsm to350gsm.

4.Processing Decision:
Kohinoor decide grieve fabric was arrived at greige department. Then greige fabric stored and send into machine . Rolling machine converted the bales of fabric into Batcher. Then the fabric was sent to singeing machine. It is singeing designing machines with latest technology and good results.

5.Technology Management:
The dyeing and printing ranges are fully automated with online monitoring systems Increase productivity and efficiency with the minimization of idle machine time

6.Quality Control Working:

Emphasis is all fabric produced meets the highest quality standards and the required specification . Quality checks it step by step at each place Greater quality control and the reduction of costs in order to remain competitive.

7.Scheduling Processing:
Marketing department place complete information of new orders Accounts department obtain this information using K-NET to make decision by using accounting techniques

8.Inventory Management:
Managers can use ORACALE based KNET system Provided the facilities to managers to control manage and analyze the inventory in stock, work in process and finished goods.

9.Manufacturing Resource Utilization Decision:

Use its internal network K-NET to best utilize its manufacturing resources.

New Product Opportunities:

1. New Technology: The technology change has been improved for the textile industry Technologies are being acquired by the international competitors as well as by local competitors KTML has the opportunity to invest for the new technology. KTML is using latest Toyota air Jet power looms which is the latest technology in the textile industry. By acquiring the latest technology, increase the production quality efficiency decrease the cost of production

2.Economic Change:
KTML has the opportunity to capture the market share locally by launching new projects just like they have launched Dhanak in August 2008. They can start new projects in garments, Apparel or Home Tax, Dyeing, Hosiery.

3.Advertising Change:
KTML has the opportunity to advertise about their selves to promote their textile products. They can advertise in international magazines and local business magazine to promote products Can also be advertised over the internet (electronic Marketing)

4.Understand The Customer Needs:

Put the customer first always. Be flexible to the customer's needs. Adhere to the highest quality standards in products.

5.Political Change
Easy monetary policy also creates a lot of opportunities for textile sector and exporters. Rapidly low interest rates of the banks is increase facilities and exporters added sources.

Product Development:
1. Quality Function Development
The company continuously involved in the research and development of new products existing products to improving quality Using highest level of quality control measures at every stage of its operations. Creativity and innovation must prevail to achieve organizational excellence.

2.Manufacturability And Value Engineering:

Kohinoor textile mills make an activity that helps them to improve a products design, Production maintainability and use.

Time Based Competition:

If the demand is not fulfill customer not satisfied therefore company deliver product rapidly on time Customer want be purchased as possible as low price with high quality at right time in market Time is important source of competitive advantage.

Distribution Channels:
KTML is using two channels for its distribution whether it is locally or internationally. Two methods are:

Service Design
After sale, services are clearly defined at that time when Kohinoor take orders from the customers than Kohinoor provide these services otherwise Kohinoor is not liable for any loss.

Personal Forecasting
Kohinoor personal forecast like recruiting, hiring, education and training, benefits management, employees termination and work force planning.

Financial Forecasting
Their financial information system to check out expenses of each department of the factory and then set budget for each department.

Profitability Analysis
In 2011 the company was having the sales in millions. During the year 2012, Companys Sale Decreased by 7.40% The cost of sales in 2012 was reduced by 8.85% this result improved Gross Profit.

Environment and Social Responsibility

Company uses all means to ensure a clean, safe, and healthy and pollution free environment not only for its workers and employees but also for the well being of all people who live in and around.

SWOT Analysis

Strengths

Having Own Electricity Plant ERP Software Power Looms Cross Cultural Communication Market Reputation

Weaknesses
Employees Motivational Level Every Booked Order Is Delivered Lately ERP Software Communication Gap Team Building Casual Attitude Marketing Of Textile Products

3-Threats
i. Political Instability ii. High Consumption Of Petroleum iii.Shortage Of Electricity iv.Shortage of Employees

v. Poor Research & Developments

vi.Increment In Merchandise Charges vii.International And Local Competitors viii.Lowest Price Of Fabric In World For USA & UK Countries

4-Opportunities
i. New Technology ii. Motivating The Employees iii.Projects Market For The Local

iv.Advertising
v. KTMLs Own Shops vi.Online Shopping Store

PEST ANALYSIS
1. 2. 3. 4. Political Factors Economical Factors Sociological Factors Technological Factors

1-Political Factors
Uneven political conditions, deteriorating law and order situation and instability in gas and electricity prices are adversely affecting the textile sector.

The main political factors which are attracting the industries and the whole world are: Musharrafs Seat, Arrested Judiciary and murder of Benazir Bhutto .

1-Political Factors
Tight monetary policy also creates a lot of hurdles for textile sector and exporters. The government is failed to decrease the everyday increasing trade deficit.

2-Economical Factors
The problems which are faced by the textile industry of Pakistan and disturbing the industry strongly economically.

Uneducated people

Foreign Investments are not coming towards Textile industry

Poor monitory and Fiscal policies of the Govt. of Pakistan

2-Economical Factors
Shortage of skilled labors and as a result labor cost increase Due to shortage of electricity,

gasoline and petroleum, Textile

industry is bearing too much cost so they have to increase their prices to earn profit.

3-Sociological Factors
Textile industry affecting the society and environment in number of ways, some are: Polluting the air by pushing out remains of chemicals which become dangerous for

human beings and also affect the fields.

Industry are firing the labors and

employees because of high salaries so unemployment rate is increasing which is not good .

4-Technological Factors
The technology has been improved and updated in the textile industry and are acquiring these technologies. By using new technology they improve their quality and efficiency but also improve their production as well as

reducing the cost of production.

Suggestions & Recommendations

KTML can publish its own

local business magazine to

promote their selves. Advertised over the internet (electronic Marketing).

Suggestions & Recommendations

By holding the seminars on textile industry in country and out of the country and offer their products to already existence and new customers. Monthly Budget, for each department especially for the commercial department.

Suggestions & Recommendations

Training courses should be
arranged for training the employees. The company should develop a detailed strategy to

overcome
conditions.

the

economic