Internship report

On

　
SUBMITTED TO
Samar Kamal Fazli.

Assistant Professor.

　
SUBMITTED BY
Muhammad Jamil BHATTI.

CIIT/Spo5-MBA-062/LHR.

　
 Submission date
August 28, 2006

COMSATS institute of information technology, JINNAH Campus,

Defence Road off Raiwind Road, Lahore

Ph No. 5321090, 9203101 Ext. 215

The internee
Muhammad Jamil Bhatti
Acknowledgements
　

All the praises are for the almighty, Allah who bestowed me with the ability and
potential to complete this Internship. I also pay my gratitude to the Almighty for
enabling me to complete this Internship Report within due course of time.

Words are very few to express enormous humble obligations to my affectionate Parents
for their prayers and strong determination to enabling me to achieve this job.

I take this opportunity to record my deep sense of gratitude and appreciation to my

Internship Advisor Mr. Samar Kamal Fazli, Department of Management
Sciences, COMSATS Institute of Information Technology Lahore for his constant
encouragement and inspiring guidance with his Wisdom.

I also appreciate the cordial co-operation from all my concern Managers in the different
departments of Nishat Mills Ltd especially Capt. M Nasir (CSO) Mr. Asif Javaid GM
Spinning Mr. Abdur Rehman, DSM Spinning Unit#3, Mr. Nadeem Ashraf Marketing
Executive and Admin & HR management for providing me requisite information and
knowledge for compilation of my complete Internship.

　
Dedication
　
　
　
　
　
　
　

I dedicate this to my Beloved Parents for all their love & attention which has made it
possible for me to make it up to this point and as well as the Internship Advisor Mr.
Samar Kamal Fazli, who bestowed me with the courage, the commitment and the
awareness to follow the best possible route, by his unmatchable style and by best
possible training.
　

Table of Contents
The internee 2
 Acknowledgements 3

Dedication 4

Table of Contents 5

Executive Summary 6

Vision 7

Mission 8

Quality Policy 9

Textile Vision 2006 10

Introduction 11

IMPORTS textile machinery 12

EXPORTS of Textile 13

Nishat Group 15

The Company 18

Business operations 23

MARKETING STRATEGY 46

Marketing process 50

SWOT Analysis 51

Detail of SWOT Analysis 52

PEST Analysis 55

Learning as internee 57

Conclusion 58

Recommendations 59

Annexure 60
 　

Executive Summary
　

Nishat has grown from a cotton export house into the premier business group of
Pakistan with 5 listed companies, concentrating on 4 core businesses; Textiles, Cement,
Banking and Power Generation. Today, Nishat is considered to be at par with
multinationals operating locally in terms of its quality products and management skills.

I recently have done my internship in Nishat Mills Limited, in which I got training from
each of its department. The internship basically revolved around the product knowledge
training. The system, the style of working & the commitment of the employees in NML
is really exemplary.

The difference between the success & failure is doing things right and doing things
nearly right, & NML has always tried for success & that is why it is known to be one of
the leading organizations in Pakistan. Irrespective of all these positive points of Nishat
Mills Limited, I have noticed a few areas where the improvement can really increase
the efficiency of NML.

In this report I have given a very brief review of what I have seen during our internship
I have mentioned all these as I have made an internship as according to the schedule. I
also mentioned about the Textile industry in Pakistan and vision of its industry. Then I
have done a detailed SWOT analysis as well as PEST Analysis.

Then I have discussed about my learning in the whole internship that is all about the
Textile Terminologies and process of the productions. I have made it possible to write
each and every thing that I have learnt there. I have all my practical efforts in the form
of this manuscript that’s the asset for my future career.

Vision
　

　
　

To transform the company into a modern and dynamic yarn, cloth and processed cloth
and finished product manufacturing company with highly professionals and fully
equipped to play a meaningful role on sustain able basis in the economy of Pakistan.

To transform the company into a modern and dynamic power generating company with
highly professionals and fully equipped to play a meaningful role on sustainable basis
in the economy of Pakistan.

Mission
　

To provide quality products to customers and explore new markets to promote/expand

sales of the company through good governance and foster a sound and dynamic team,
 so as to achieve optimum prices of products of the company for sustainable and
equitable growth and prosperity of the company.

Quality Policy
　

We work together as a team for implementation and continual improvement of total

quality system in order to achieve satisfaction of our internal and external customers.

Textile Vision 2006

An open market driven, innovative & dynamic Textile Sector which is:-

Internationally Integrated.

Globally Competitive

Fully equipped to exploit the opportunities created by the MFA Phase out and
this enables Pakistan to be amongst the Top Five Textile Exporting Countries not
only in Asia all over the world with the tremendous Textile companies

Low Road Scenario represented a situation where only the historic export growth rates
in textile sub-sectors were maintained. The overall average export growth for the textile
sector after analysis was finalized at 6% per annum.

Do-Able Scenario envisaged increase in unit price realization of yarn, fabric, textile
made-ups and garments with an attempt to maintain the market share in each individual
market. It also suggested penetration in the non-quota markets along with increased
share of synthetic and blended yarns, fabrics and garments. The overall export growth
in this scenario was estimated at 12% per annum.

High Road Scenario the most ambitious of the scenarios that not only adopted the
apparel sector as the engine of textile export growth but also recommended
diversification in products that hold greatest potential but unfortunately have been
neglected e.g. woven garments, sports wear, specialized industrial garments, and
women wear. Besides broadening of export product portfolio with extra push in
synthetic and man-made fibers, fabrics and garments,

Introduction
The Textile Industry:

Over the years, Pakistan is said to be the single crop economy i.e. cotton and textile that
claims the lion's share in terms of the contribution in the national economy of Pakistan.

Despite efforts to bring in diversification in country's overall economic get-up the

textile sector continues to be the most important segment of the national economy. Its
share in the economy, in terms of GDP, exports, employment, foreign exchange
earnings, investment and revenue generation altogether placed the textile industry as the
single largest determinant of the economic growth of the country.

Despite harsh and hard international economic conditions, Pakistan's textile industry
has weathered the storm by coming out of the international crisis in a very positive
manner.

During the year exports were controlled from falling and significant investment was
made in value-added expansion and in Balancing-Modernization- Replacement (BMR).

Besides fall out of the events of September 11, the implementation of WTO's
agreement, various bilateral agreements have been signed and implemented.
As a result global scenario has changed. Government and the corporate textile sector
adjusted their policies to achieve maximum benefits of free trade. So, local structure of
the corporate culture, investment pattern and fiscal and monetary policies were
significantly changed.

IMPORTS textile machinery

Import of textile machinery and equipment has picked up since 1997-98 when a bumper
cotton crop was harvested and the Textile Industry reaped massive profits due to lower
input cost. In the last five years more than Rs9 billion have been invested for the import
of spinning machinery. Nishat is one of the major customers in terms of importing
Textile Machinery from almost all developed countries.

It is expected that an additional Rs10 billion would be required for Balancing,

Modernization and Replacement (BMR) in the spinning sector during the next three
years for producing superior quality yarn besides several units are in various stages of
installation in Karachi also.

These facilities would improve value-addition in fabrics, besides increasing the volume
of fabrics and quality garments exports from the country.

Textile is the only sector where investment has been substantial and regular during past
three years. The most encouraging factor of this investment is diversity.

The entrepreneurs, who earlier concentrated on Spinning and Weaving, have now
established compact units adding state-of-the-art finishing units and knitting machines
to add value to their products. The latest addition to this is the setting up of denim cloth
producing units.

At present, the export competitiveness of the textile industry can be improved by

aggressive marketing techniques and quality improvements which have to be taken care
of micro-level that is each textile unit should make its own independent efforts to sell
its products in different international markets.

All the individual textile units should implement the ISO 9001 program for quality
standard and ISO 14000 for environmental standards to counter the threat of
globalization.

EXPORTS of Textile
Despite sluggish trends in the international markets, exports of textile manufactures
increased from $5.75 billion in 2000-2001 to $5.8 billion in 2001-02. The encouraging
factor was the increase in the exports of value-added items. The share of value-added
products in total textile exports from Pakistan this year was 57.13 per cent as compared
to 54 per cent last year.

Cotton cloth export also increased to $1.13 billion during this period as compared to
$1.03 billion in 2000-01, indicating an increase of 9.7 per cent. The exports of bed-wear
fetched $918 million against $745 million; showing growth of 23 per cent, while towels
exports increased by 12 per cent to $270 million against 242 million.

Readymade Garments improved by 7 per cent to $882 million from$827 million,

whereas Made-up articles increased by 6 per cent to $351 million as compared to $331
million.

The exports of five sub-groups i.e. Cotton Yarn, knitwear, Tents, Canvas/Tarpaulin,
Art, Silk/Synthetic Textile and other manufactures declined during the period. Cotton
yarn, which earned $1.1 billion during 2000-2001, earned $ $911 million.

The textile quota exports to the United States, European Union, Canada and Turkey
grew by over 18 per cent with nominal increase in value during the first seven months
of the calendar year 2002 compared to the same period last year.

The highest amount of increase of 55 per cent in quota exports followed by US 29 per
cent and EU 12 per cent. Exports to Canada declined by 21 per cent in quantity.

In terms of value, exports grew by 30 per cent to Turkey and 13 per cent to the EU.
Exports declined in case of Canada by 29 per cent and 9 per for the US. The total
exports to the US were 420 million square meters worth $481 million; European Union
imported 1058-million square meter worth $509 million. Canada imported 16 million
square meters worth $18 million and Turkey, 101 million square meters worth $28
million.

The average unit price of Pakistan's textile quota exports dropped considerably i.e. 30
per cent in case of US, 9.6 per cent for the EU and 16 per cent in case of Turkey. The
only increase 0.21 per cent was recorded in average unit price of exports to EU. The
WTO agreement provides for making textile trade completely free from 2005.

The textile export figures for the first ten months of the current year released by the
Export Promotion Bureau revealed that the textile quota exports to the US improved by
24 per cent while the increase in exports to EU countries at the end of October 2002
registered an increase of 16.6 per cent in terms of value and 13 per cent in terms of
quantity.
CHALLENGE:

To get maximum benefit from quota free regime, all out efforts are needed to boost
textile exports and increase access to the international markets. To boost the exports,
the State Bank of Pakistan has introduced three facilitating schemes for the exporters
namely, Foreign Currency Export Financing Scheme (FCEFS), Political Risk Guarantee
Scheme (PRGS) and the Export Guarantee Scheme (EGS). The bank would provide
210 days credit facility to exporters for South America as compared to 120 days credit
facility to other markets.

Nishat Group
*The Nishat Group* Mian Muhammad Mansha Yaha is the captain of this splendid ship
having around 30 companies on board. Mansha, who owns the Muslim Commercial
Bank as well, is now setting up a billion rupee ($ 17 m) paper sack project too. He is
one of the richest Pakistanis around. Nishat Group was country's 15th richest family in
1970, 6th in 1990 and Number 1 in 1997. Mansha is on the board of nearly 50
companies. Chinioti by clan, Mansha is married to Yousaf Saigol's daughter.

He is deemed to have made investments in many bourses, currency and metal

exchanges both within and outside Pakistan. He has had his share of luck on many
occasions in life and has recently been awarded Pakistan's highest civil award by
President Musharraf. He could have bought the United Bank too, but then who doesn't
have adversaries. Nishat Group of comprises of textiles, cement, leasing, insurance and
management companies. If Mansha was bitten by Bhutto's nationalization stint of 1970,
his friends think he was compensated by Nawaz Sharif's denationalization programme
to a very good effect. There is no stopping Mansha and he is still on the move!

The history of Nishat Group dates back to 1951, when Mian Muhammad Yahya
founded Nishat Mills Limited.

This man of vision, courage and integrity, Mian Mohammad Yahya was born in 1918 in
Chiniot. In 1947 when he was running leather business in Calcutta, he witnessed by the
momentous changes that swept the Indo-Pak subcontinent.

This is story of success through sheer hard work and an undaunted spirit of enterprise.
Beginning with a cotton export house, he soon branched out in to ginning, cotton and
jute textiles, chemicals and insurance. He was elected Chairman of all Pakistan Textile
Mills Association. He died in 1969, at the age of 51 having achieved so much in so
short time.
After almost half a century of undaunted success, Nishat group is among the leading
business houses of the country and ranks among the top 5 groups in terms of assets and
sales revenue. The group has its roots firmly planted into four core business namely

Textiles

Power Generation

Banking

Cement

TEXTILES

The textile business is further subdivided into 2-textile division:

Nishat Faislabad

Nishat Chunian

The textile capacity of the group is the largest in the country. An addition of 20,000
new spindles, 100 new air jet looms and new dyeing plants has increased the existing
capacity of 242,000 spindles, 740 looms and dyeing and finishing capacity of 5 million
meters. The largest exporters of textile products from Pakistan, for more then decade!

POWER GENERATION

Nishat group has also been a pioneer in power generation in the private sector of the
country. Nishat setup the first power generation unit in the private sector in 1995.

CEMENT

In 1992, Nishat Group acquired D.G Khan Cement Company Limited (DGKCC) from
the second largest project of the group and is ideally located in the heart of the country,
with easy access to transportation all over Pakistan. DGKCC unit No. 1 has a capacity
of 2,200 tons per day. A new unit heaving the capacity of 3,300 tons was setup in 1997.

International Finance Corporation and common Wealth Development Corporation have

financed this unit. With the addition of unit No.2, DGKCC has become the largest
manufacturer of cement in Pakistan.

BANK
In 1991, Nishat Group ventured into the financial sector through the acquisition of
Muslim commercial Bank. MCB has grown ever since and is now the largest bank in
the private sector. MCB has a network of over 1200 branches employing over 12,000
people.

The Company
Nishat Mills Limited is a public Limited Company incorporated in Pakistan under the
Companies Act, 1913(Now Companies Ordinance, 1984) and listed on Stock
Exchanges in Pakistan

Nishat Mills

Nishat Mills Limited (“Nishat”) is a public company incorporated in Pakistan and listed
on all three Pakistani stock exchanges. Nishat is engaged in textile manufacturing.

Which involves spinning, combing, weaving, bleaching, dyeing, and printing, stitching,
buying, and selling of textiles? They deal with yarn, linen, cloth and other goods
including fabrics made from raw cotton, synthetic fiber and cloth.

The Company is engaged in the business of textile manufacturing and of spinning,

combing, weaving, bleaching, dyeing printing, stitching, buying, selling and otherwise
dealing in yarn, linen, cloth and other goods and fabrics made from raw cotton,
synthetic fiber and cloth, and to generate, accumulate, distribute and supply electricity.

Company is providing quality products to its customers within the Pakistan and outside
the Pakistan. Presently company is exporting its all kinds if apparel products.

　
　

Major competitors
Nishat competitors are

Crescent
 Chenab

Arzoo

Alkarms

Sitara

Kohinoor

Amtex

But main competitors of Nishat Mill are

“Crescent Textile Mills”

“Chenab Textile”

company profile:
　

CHIEF EXECUTIVE:

Mrs. Naz Mansha

BOARD OF DIRECTORS:

Mrs. Naz Mansha

Mian Raza
Mansha

Mian Hassan
Mansha
 Mr. Muhammad
Nawaz Tishna (NIT)

Mr. Faisal Ehsan

Ellahi

Mr. Khalid
Qadeer Qureshi
(Chief
FinancialOfficer)

Mr. Muhammad
Azam

Mr. Rana
Muhammad Mushtaq

FINANCE DEPARTMENT:

Mr.Shehzad Malik (G.M)

Mr.Usman Bajwa

Mr.Badar Rauf

Mr.Ashraf Ali Raza

Mr.Inam

Mr.Mudassar

Mr.Asad Iqbal

Mr.Masood Akhtar

Mr.Nawaz

Mr.Zulufiqar

AUDIT COMMITTEE:
 Mr.waseem ul
Haque Osmani
Chairman

Mian Hussan
Mansha Member

Mr. Aftab
Ahmed Khan
Member

HEAD OF INTERNAL AUDIT:

Mr.Khalid Kabeer

CORPORATE DEPARTMENT:

Mr. Muhammad Azam

Mr.Khalid Mahmood Chohan

AUDITORS:

Riaz Ahmed & Company

Chartered Accountants

LEGAL ADVISOR:

Mr.
M.
Aurang
zeb
Khan,
Advoca
te,

Chamber No. 6, District Court,

Faisalabad.

BANKERS TO THE COMPANY:

AB
N
AMRO
Bank

Allie
d Bank
of
Pakista
n
Limite
d

Ame
rican
Expres
s Bank
Limite
d

Ask
ari
Comme
rcial
Bank
Limite
d

Cre
dit
Agrico
Citi
bank
N.A

Deu
tsche
Bank

Fays
al Bank
Limite
d

Hab
ib
Bank
Limite
d

Hab
ib
Bank
A.G.
Zurich

Mas
hreq
Bank
P.S.C

Mee
zan
Bank
Limite
d

Nati
onal
Bank
of
Pakista
n

Stan
dard
Charte
red
Bank
Grindl
ays
 The
Hong
Kong
&
Shanga
i

Ban
king
Corpor
ation
Limite
d

Uni
on
Bank
Limite
d

Unit
ed
Bank
Limite
d
　

Business operations
　

Spinning Department:

Nishat Textile Limited has seven spinning units situated in Faisalabad. These units
are equipped with the latest machines in all of their departments. In the spinning
units the fiber is converted into yarn, and as this the quality of yarn is very
important in the textile sector so spinning units have a lot of importance.
Spinning

Weaving
 Grey Room

PROCESSING

Singeing

Desizing

Scouring

Bleaching

Printing

Dyeing

Finishing

Folding

　
　

Generally the spinning mills mechanism is very similar. It starts from the mixing
department where the bales of cotton are mixed and at that section the most visible
impurities are taken out. This mixed cotton is then taken to the blow room by a
machine. After going through a process it is taken to the card room for the next
process.

After the card room the route is taken by keeping in view that whether carded
yarn is the end product or the combed yarn. The combed yarn is of better quality
and its process is a bit bigger than the other one.

For the carded portion the drawing breakers & drawing finishers are used to
prepare the fiber to a certain level so that the process on the simplex machine can
be carried out. On the other hand, in the combed portion, after the drawing
breaker the cotton goes through the lab former, & after that it goes through the
combing machine, where the comer noil and comber sliver are separated.

The comber sliver, after passing through the PC drawing & Drawing finisher goes
to the simplex machine. The product that comes from the simplex machine is then
taken to the Ring section where the yarn is to be made. Finally after passing
through the auto cone the yarn comes in the packing department. In NML the
process of Ultra Violet Checking is also practiced to ensure the quality of the yarn.

As this process is very important so there are some common parameters on which
the quality of yarn is judged. These parameters have been listed as below:

Important Parameters of Yarn & Fiber:

Important Parameters of the Fiber:

• Length

• Strength
 • Micronaire value

• Color grade

• Neps / gram

• Trash percentage

Important Parameters of Yarn:

• Yarn count

• Strength LCSP

• U percentage

• Thin Places

• Thick Places

• Neps

• IPI (Imperfection)

Yarn Elongation (Flexibility)

• Single Yarn Strength

• TPI

• Twist Multiplier

Weaving Department:

Very similar to the spinning units, the weaving units of NML are really very well
equipped with the latest machinery to make the best possible product for the
customer to gain the customer satisfaction.
Most of the machines in the weaving unit of NML are of new technology & NML
has a very good check on the quality of fabric produced by its Quality Control
department.

The end product of the spinning unit is the starting point of the weaving unit.
When the cones of the yarn are brought to weaving unit, it is then taken to the
warping zone in which the beams are prepared.

These beams are then taken to the sizing section where the different chemicals are
applied to the yarn so that the weaving of the fabric can be done with the
minimum breakage of yarn. After sizing the process of drawing inn is applied so
that the yarn could be converted into fabric.

After the drawing inn the beams of the yarn is then taken to the Sulzer Looms so
that the yarn is converted into the weaved product. When the greige is made, then
it is taken to the inspection department, where a lot of quality check is done. At the
first step the fabric is classified into two types, i.e. A grade & D grade.

The D grade fabric is either used in the B grade sale or in gathering of the fresh
pieces. While the process of A grade fabric is a bit longer.

The A grade fabric after mending, goes to the checking machines, from where it is
taken to the rechecking machines. After rechecking either the greige is rolled or
folded & packed according to requirements of the buyer.

During all the above process, quality is the main purpose of the NML people. The
weaving units of NML check the product quality as under:

NML (Four Weaving Units) BHIKHI

NML has one of the largest weaving setups in Bhikhi, near Sheikhupura. This Unit
is equipped with the later Air Jet looms. The variety level of the product is very
good.

In the warping section NML Bhikhi has 5 Benninger Machines which are of
Switzerland origin. In the sizing section the NML Bhikhi has 5 machines. As far as
the looms are concerned, NML Bhikhi has 389 looms for preparing the greige. Out
of these 389 machines 96 are Sulzer Ruti of Switzerland, while other machines are
the latest Air Jet machines of Japan origin.
The Bhikhi unit of NML is specially very well known for its product in all over the
country.

Quality Control Department:

First of all the people of NML checks the quality of yarn before taking it into the
process. Following are the yarn characteristics that are checked before taking it
into the process:

• Count Testing

• Strength Testing

• TPI

• Hairiness Testing

• Thick & Thin bases

At the warping section the following characteristic is checked:

• Breakage Report

When the sizing process is applied, the following two tests are applied:

• Abrasion Test

• Strength Test

After completion of the greige the g/sm test is applied so that to have the best
customized product. Finally in the folding section checks are applied at every step
of the folding process. The weaving units of NML are known to be the best
producers of greige product in Pakistan.

QUALITY CONTROL LAB:

During the production, quality control lab ensures that every work has done
according to the standards of NML. Following checks are made at different
departments:

Checks while Printing:

 Rubbing

Washing

Dry Cleaning

Chlorine Test

Checks after Curing:

Rubbing

Washing

Checks after Stenter Process:

Light Fastness

Shrinkage

Rubbing

Washing (Optional)

Pilling

Checks after Raising:

Quality check

The purpose of all these checks is to ensure the Quality of the end product.

QUALITY CONTROL LAB MACHINES:

• Crock Meter:

• Pilling Machine:

• Garment Washing Machine:

• Dura Wash:
 • Wascator Machine

• Thumble Dryer

• Light Box

• Auto Wash

• Curing Machine

• Pader

• Light Fastner Tester

• Air Permea-meter

• Data Color

Visco Meter

The above are the machine which is used in the Quality Control Lab to ensure the
quality at every step.

Processing Department:

Processing Unit of every textile mill has a paramount importance because it

actually provide the finish fabric product which is either sent to customer either as
a piece good or as made up after converting the fabric into the required stitched
product. The processing unit of NML comprises of the following department:

Bleaching Department

Finishing Department

Printing Department

Dyeing Department

Folding Department
 Quality Control Lab

Digital Design Studio & Engraving Department

Sample Room

Production & Planning Department

The operations of Production & Planning Department are to work as a bridge

between the marketing team and the processing people, so this department has the
prime importance.

All of the communication which is held between the processing & the export
people is done through this department. The finishing department is also very
important because it is the center of operations held in the processing unit.

A brief overview on the Processing capacity of NML has been discussed as follow:

Bleaching Department:

The bleaching department of NML is equipped with the latest machinery to

compete with the market. Bleaching department has the following machines:

Singeing & De-sizing:

L-Box:

Mercerizing:

Emerizing:

Jiger:

Water Mangle:

The above are the machines & a very brief overview of the machines. The
bleaching department is like a back bone of the processing unit. After weaving
mill, the fabric is brought to the bleaching department where it is prepared on the
above machines so as to be prepared for the Printing or Dyeing.

The Quality Control people ensure the Quality of work in the Bleaching to fulfill
the collective goal.
Printing Department:

The Printing department of Nishat Mills Limited comprises of three rotaries, i.e.
Reggianni, Zimmer & Stork. Along with theses three rotaries, the printing
department has three sampling tables to fulfill the sample need of the customers of
NML.

There is a mini sampling machine for the sampling section to facilitate their work.
The specification & general points about these rotaries are as under:

Reggianni Machine:

Zimmer Machine:

Stork Machine:

The Printing department of NML is working at its best & producing really good
stuff. After the printing from the rotaries, the route of the fabric depends on the
dye class.

If the reactive dyes have been used, then the fabric will be taken to first of all Ager
Machine & then Goller Soaper Washing, then to Stenter finish & finally to the
calendar.

On the other hand the fabric treated with pigment dye is taken to the curing
machine & from there it is taken to the calendar after the required stenter finish.
Now in the following line, we’ll see the specifications of the Curing & Ager
Machines:

Curing Machine:

Ager & Curing Machine:

Dyeing Department:

The dyeing department is a major department of NML processing. This includes

three machines. These machines have been identified & discussed as below:

Pad Thermosol:

Pad Steam:
 Goller Soaper Washing:

So above is a bird’s eye view on the dyeing department of NML.

Finishing Department:

Finishing department of any textile mill has a very significant importance because
it acts like a hub in the Processing. Almost every fabric which goes through
processing unit, it has to be passed through the finishing department.

The finishing department of NML Processing unit is famous for its quality work. It
comprises of many latest machines which includes Stenters, Cylinders, Raising
Machines & Sanforizing Machine.

Types of Finishes:

There are two major types of finishes:

Chemical Finishes

Mechanical Finishes

The finishes in which no chemical is used is called the mechanical finish, a very
good example of mechanical finish is Calender Finish. On the other hand the
finishes through stenter are known to be the chemical finish. The finishes are of
the following types:

Normal Soft

Super Soft

Chintz

Anti Pilling

Anti Wrinkle

Water Proof

Easy Care

Soil Repellent
Sanforizing Machine:

The Sanforizing machine is used for relaxing the shrinkage of warp. The machine
possessed by NML has a workable width of 114”. It is basically used either on
customer demand or in case of Garments. The standard is 5%. NML has one
Sanforizing machine in its processing unit.

Raising Machine:

This basically means to raise the fibers from the surface of the fabric. The machine
possessed by the finishing department of NML has a workable width of 114”.
NML has one raising machine in its processing unit.

Calender:

NML has 2 Cylinders. The basic purpose of calendaring is to have the shine & to
have better hand feel. These Cylinders are of two different lengths, the workable
width of the Cylinders is 100” & 111” respectively.

The above is a brief introduction of the Finishing department of NML.

Folding Department:

The folding department of the NML has a daily production of 1,00,000m. The
folding department is the last department of the Processing Unit. After the folding
unit the fabric is transferred to GSC.

The folding department has two kinds of machines; the kind is rolling machine
while the other kind is of folding machines. It depends on the requirement that
which kind of machine would be used.

In the folding department of NML latest 4 score method is used for the inspection
purposes. Quality checks are made at every step of processing unit.

Engraving Department:

The Engraving Department of Nishat Textile Mills Limited is equipped with the
latest machinery along with the manual machinery for the process of exposing.

In the Engraving Department of NML, the screens are generally prepared which
are then used in the printing process.
Sizes of the Screens:

Following are the three repeats of screens which are used in the Engraving
Department:

640mm

820mm

914mm

Similarly the widths of the screens are of the following five kinds:

3030mm

2650mm

1850mm

1620mm

1280mm

The fifth width is currently not in the use of Engraving department and that are
not in used in NML now. The first four kinds are basically in use in the NML.

The selection of the screens depends on the design requirement of the print. The
most important thing which should be kept in mind is that only one screen should
be used for one color that means the number of screens will be equal to the
number of colors which will be used during the printing process.

Process:

1. Coating Stage:

The first step which is taken in the formation of the screens is to coat the screen
with SCR 100. This coating is done for the purpose of blocking the meshes of the
screen so that the required king of design can be made through the screen. The
coating of the screen takes almost 8-9 minutes.
2. Heating Stage:

These screens are then heated in the ovens so that to carry out the process in the
best possible manner. When the screens are heated in the proper way then they
are taken to the exposing machines. The heat is provided to the screens so that to
fix the SCR 100 so that the exposing stage should be started.

3. Exposing Stage:

Nishat Textile Mills Limited has two exposing machines, one of them is manual
and the other is fully automatic. The automatic machine is the “wax jet”. The
process of exposing stage is different for both the machines.

In the process of Manual Machine, it is quite a time taking process. In this

machine, the presence of machine operator is very important; otherwise the time
for each screen will be higher than the original one.

Earlier most of the work was done through this machine but now the major load
has been shifted to “was jet”. Irrespective of these facts the importance of this
machine is still there.

All sizes and widths of the screens can be prepared through this machine. Basically
the manual machine is used for the word of design studio.

The “Wax Jet” machine is fully automatic. The work done through the digital
design studio is done through this automatic machine. The speed of exposing
through this machine is relatively higher than the manual machine because there
is not such need of operator at every stage of the exposing.

The process at this machine does not effect because of the presence of the operator.
The exposing is being done through the wax on this machine that is why it has
such a name.

The mechanism of this machine is that the machine is linked with the digital design
studio, so the operator can access any of the prepared design in the studio. Then
the wax is applied on the screen in such a way that the wax is applied on that place
from where the operator want to open the meshes. Then the lighting process is
done i.e. the screen goes through high power light.

The result of this process is that the place where only coating is there and there is
no wax, at these places the coating got fixed in such a way that the meshes are
blocked in a better way. After this Exposing stage the screen is taken to the next
stage.

NML has ordered for “ink jet” machine which will enhance the production
capability of the engraving department.

4. Washing Stage:

The screens are then taken from the exposing machines to the washing area. This
is the area where the screens are washed so that the black portion can be washed
from the screens. This is also called the Developing Stage. The screens are then
kept on the light stand to see that whether the results are satisfactory or not. When
the staff feels that the design is satisfactory then they send this screen to the
heating machine for curing.

5. Curing Stage:

The curing is being done through an oven. The screens are kept about 20-25
minutes in the oven. This heat fixes the design on the screen so that after the final
touch the screen can be sent to the next department.

6. Endring Stage:

During this stage the ring type iron is fixed on both the sides of the screens so that
the screens could be taken to the printing department for printing.

7. Touching Stage

During the touching stage the final work is done. In this stage if there is any extra
patch on the screen, then they are blocked with SCR52 so that the correct effect
can be drawn on the fabric. This is the final stage of Engraving Department. After
this step, the screens are then taken to printing department.

Design Studio

The design studio is a very important department of Processing Unit. The

importance of design studio is because of the reason that without its right work
nothing correct can be done. The presence of good design studio is very important
for any good textile export organization.

The buyer sends the desired design in the following forms:

 Through Sketches

Through Fabric Sample

Through CD

swages

Now after having the concept of design, it is then the responsibility of design
department to make the screen design, to select the sizes of the screen, to select the
repeats of the screens and most importantly to make the films and designs so that
to have the same designs during the printing process as required by the buyer.

In the digital design studio the work is being done through the latest machineries
and software and dedicated and educated persons are there for the purpose
carrying out the process. All of the work in this studio is done on the latest
machines and the work can be accessed through the Wax Jet machine.

In the other design studio, the work is being done through the experienced
persons. In that studio the guideline is the first thing which is made at the start.
After this step, there comes a chain in the design studio such as to separate the
colors up to making the and preparing the films which can be used in the
engraving department.

Stitching Department:

NML has two stitching units.

1: One is situated in Faisalabad

2: The other is situated in Lahore.

The bedding section is concentrated in Faisalabad while the Lahore unit is a

complete unit which is involved in all kinds of stitching.

CUTTING DEPARTMENT.

The cutting department is the first department of GSC, which takes the fabric.
The fabric, which is to be stitched, is brought from the folding department to the
cutting department. In this department the fabric is cut according to the
specifications & need. From the cutting department the fabric is transferred to the
store from where the fabric is issued on the required floor according to the
freezing plan.

The cutting department objectives

• Quality control

• Cutting

• Minimize Wastage

So cutting department was performing these responsibilities. Mr. Arif the Cutting supervisor
who shared the rules of cutting that is the foundation of the complete stitching department.
Those are

One: LENTH FOR LENGTH (L*L)

Two: WIDTH FOR LENGTH (W*L)

The Process flow of cutting department is as below

SAMPLE PROGRAMME CUTTING

Stitching Department (GSC)

Stitching department is one of the well equipped machines department in the field
of the Textile in Pakistan that’s why there are most of the loyal customers of the
Nishat from all over the world specially WALL MART, TARGET and TARGET.
These are the major have chain of stores around the world.

724 helpers are daily wages working as quality checker in the whole stitching
department. 400 stitching machines in the whole stitching unit. Every machine
operator has a unique no to find out the any type of the fault.

The objectives of the stitching department are

◊ The cost minimization and

◊ To minimize wastage

◊ Best utilization of time

 ◊ Quality control by line checker

Types of stitching
◊ LOCK STITCH,

◊ CHAIN STITCH,

◊ TWIN NEEDLE,

◊ WORK STATION

◊ Blind stitch

◊ Over lock

◊ Flat lock

Dispatch Department

Dispatch department is performing two functions

◊ WARE HOUSE,

◊ MAID-UP DISPATCH

Dispatch department is responsible to dispatch all types of Export after packing. It

depends on the marketing department when it should be dispatched. Its not
necessary to dispatch daily. Dispatch department is to pack and dispatch report
preparation the prime responsibility is to make maid-ups dispatch Report.

Dispatch Department has a continual liaison with Marketing Department and to

fix stickers according to the customer demand on the cartoons. The dispatch
report also send to the head office and as well as customer. Maximum container
capacity is to six containers per day. Work force is use for loading or shipping in
container.

Container Type:

◊ Twenty fitter lengths

◊ Forty STD 8.5 feet length

 ◊ Forty STD = 9.5 height.

From cutting to dispatch process is as below

Cutting stitching Packing dispatch

COMMERCIAL DEPARTMETN:

Along with the cutting section, there is another important depart named as
commercial department. The working of commercial department starts from
receiving the stitching programs. First of all, they see whether it is a new order or
a repeat order. Then they issue a demand order through their Purchase
Department. It is the duty of the commercial department to arrange all the
equipment needed in the stitching unit for every bulk order. The products which
are the responsibility of the commercial department includes label, fusing,
polyester rope, stiffener, insert card, poly bag, stickers, size stickers, identification
sticker, barcodes, security codes etc.

A freezing plan is made every month so as to maintain & systemize the production
process. The stitching units of NML have latest and number of machines to fulfill
the customer need & requirements. Total number of helpers in on daily wages in
the whole stitching unit is 724. There are 400 machines in the GSC (general
stitching company).

Quality is most important consideration while production in NML. This is why the
quality checks in stitching department are of very good level. In Nishat Sewing
Lahore, Acceptance Quality Level 2.5 & AQL 4.0 is under practice. The Nishat
Sewing Lahore is a certified for quality level from many organizations. This shows
that the Quality checks in Nishat Sewing Units are of international standards.

As the stitching department is the last department before the dispatch of goods so
a lot of responsibility comes on its shoulders. There are sample rooms in the
stitching units so as to fulfill the sample stitching requirement for different
markets to ensure customer satisfaction.

So the above is the brief overview of some of the NML operations. Now we’ll
discuss the chances of further improvement in NML.
Export Marketing Department:

The export department of Nishat Mills Limited is known to be the best marketing
department in the whole textile industry because of the commitment and
dedication of employees, the determination of work & the best management
system.

NML Marketing has a very strong liaison with their customers around the world.
That’s why NML has different segments on the basis of different regions like
North America, Australia and Europe.

Every region has a different Export Manager and its whole staff. The marketing
responsibility is not only to just sales and marketing it has also to find out new
horizons and new ways. That’s why Managers visit to new Markets around the
world.

HAM TEX FAIR

Hamtex is a fair of textile held in Germany on every January of the year in which
all over the world well established organizations make their display centers to
attract new customers.

This department is responsible for the export of yarn, grey cloth and processed
fiber. This department has to fulfill all the legal requirements and prepare
important documents involved in the export of yarn, grey cloth and processed
fiber. This department starts working from getting purchase order to deliver the
shipment to the buyer.

The export department performs 3 major functions.

Shipment of Yarn, Grey cloth & Processed Fiber

 After receiving packing list from shipping department, export departments
starts its main functions. It usually prepares the following documents to
ensure the timely shipment.

The most commonly documents which export department has to prepare

and deal with are:

Letter of Credit (L/C)

Bill of Exchange

Commercial Invoice

Export Declaration Form

Certificate of Origin

Packing List

Customs Invoice

Textile Declaration Form

Inspection Certificate

Shipping Bill/Bill of lodging/Air Way Bill

Manufacture's Certificate

Letter of Credit

Letter of credit is the conditional undertaking on the request of the

importer/buyer. It is also called documentary credit defined as;

“A written undertaking by the bank of importer i.e. issuing bank at the request of
buyer or importer to make payments at sight or at determinable future date upto
stated sum of money within prescribed time against stipulated documents”.
FNML parties are involved in the payment of the goods, i.e., the buyer, buyers
bank, beneficiary, L.C. advising bank.

After clearance of the export documents, export department negotiate the papers
with bank receive payments from the bank. Then NML local bank sends
documents to the buyer bank and foreign bank release payment to NML bank
with the permission of the buyer.

QUOTA SYSTEM

Most of the customers are American and U.S. Government allocate quota to
third world. Infect quota is a quantitative restriction and more than that
can't be shipped to America from a particular country
　

CLAIM FOR REBATE

Rebate is actually a "Duty Draw Back". The duty which an importer pays to
government for the product that is re-exported after some process, then
government pays back some of its part. This pay back of duty is called rebate.

　
　

MARKETING STRATEGY
The past year has been tough for the textile industry as competition is steadily and
margin of profits is becoming smaller day-by-day. Our competitors from Asia
have come up in a big way with lower prices resulting from lower overhead,
cheaper and better raw materials and machinery.

Countries like China, Indonesia, India and Bangladesh played an active role in the
fabric market. Improvement in quality and production capability was the main
area of concentration.

Market for Yarns and Grey fabrics was diversified to increase the customer base
and reduce dependency on the Far East. In this effort business with Malaysia,
Korea, Taiwan, UK and South America was initiated in case of Yarns.

A new spinning unit of 21,672 spinning has also commenced, which caters to the
weaving units in Sheikhupura.
In case of Grey Fabric market business was initiated in South Africa, North
America, Japan, Italy, France, and Sri Lanka etc. Product range was also
increased to cater to the differing needs of the buyers. Fancy and special items like
Dobby Designs, Bedford Cords, and Cavairy Twills and stretch fabrics were
developed which are being sold at premium prices.

NML has constantly updated our machinery, replacing old machines with new
ones upgrading the existing set-up, leading to better efficiencies and quality
products.

Nishat has established its name in new markets be creating specialized fabrics,
designs and also by providing our customers with efficient service and excellent
quality.

Leaving behind the traditional way of doing business and in our journey towards
excellent it has consistently expanded its buyer base and explored the different
markets around the world.

Keeping in view demand of the World market, Nishat Mills Ltd pursued its
strategy of value addition and reducing the dependency on Grey Fabrics and Grey
Yarn.

Having the foresight to assess that in coming year’s value addition will be the thing
of the future, Nishat Mills Limited worked towards the achievement of its goal of
future increasing its capability in value addition.

The export of processed fabric and made-Ups has shown market improvement as
compared to last year. In Europe, Nishat has made the most growth in the year
1999.

It has placed us successfully in the middle to upper end of the market. Our
strength in Europe is the curtain division.

This included yarn dyed dobbies, engineered confections, different finishes and
embellished products. The plan is to continue with this winning strategy and at the
same time we are trying to find new clients in the high end.

We are also exploring business opportunities in countries like Spain and France
where Nishat has very little business at the moment.

North America is the star market for Nishat; it’s a new market for it after
breaking up the exclusive arrangement with our previous sale set-up. The quota is
coming down in 2005 and we have started to prepare for it internally as well as for
the external environment. Bedding is the bulk of the home textile business.

Nishat is in the process of updating its machinery to cater the needs of the wider
width fabric requirement for USA bedding business. Nishat is also taking up the
social accountability issues very seriously, which are so dear to the American
consumers. Lot of big brand US companies have visited us and are discussing the
possibilities of a joint venture.

The opportunities are limitless, we have to review and analyze them very
thoroughly to associates with the right people in the long run. In the short term we
are building a small amount of quota, which will give us recognition as a bedding
supplier.

Nishat is very strong in non-quota categories like curtain and table linen. These
categories are best served with new product development (NPD). Nishat will
coordinate the effort for NPD by all markets to optimize results. Nishat has
achieved the highest sales in 1999-2002 for North America market.

On top Nishat has developed more direct and closer relationship with our end
customers. Oceanic has been our most lucrative and mature marker. In business
terms it is our “cash cow” market.

Primarily due to being a non-quota market it had no real limitations in this

market. Despite economic problems in that region, it has maintained our sales
figures in the year under review. This market is a good design source for other
markets, which is helping us to maintain our print volumes.

Middle East market is composed of South Africa and the new emerging markets
like the UAE, Egypt, Saudi Arabia, and Jordan etc. Nishat has dedicated new staff
with fresh energy for the emerging market.

They have successfully broken the ground and we have very strong faith that these
markets will give us good volumes in the near future. We are also targeting
printed apparel business for the first time. The latest addition is the most
ambitious Apparel Dyeing plant setup near Lahore, which has started its
production.

The effectiveness and productivity of this plant will be further enhanced, as Nishat
Mills Ltd moves towards becoming a more vertically integrated organization.
Our dyed fabric has already established its name in the market. It is being
exported to some of the leading brands of the world.

Nishat has increasing its profitability by working efficiently, procuring better raw
material and most importantly kept a very close association with its costumers.

It visits its business partners frequently and provides them with the best service
possible. All of the above mentioned points led to strengthened relationship with
its business partners making it very difficult for its competition to penetrate into
its market share.

Nishat has provided its staff with better working environment and facilities, which
enhanced efficiency and out put.

At Nishat, it is prospering due to our professional commitment toward excellence

and giving the best results at all times and against all odds. Its marketing and
production teams co-ordinance at all times and it focus remains on maintaining its
position as the market leader in the textile sector of Pakistan.

Marketing process
　

Inquiry costing quote to customer

Check Greige

Processing cost per delivery

　
Approval received

　
Lab dips/strike sample P.O received/Sales Contract sent

Greige booking

Dying/printing program issue

Fabric processed

Shipment sample dispatched for approval

Shipment sample approved

Shipment dispatched

　
 SWOT Analysis
　

Strengths:

• ISO 9001-2000:

• Strong Security
System
　
• High quality
product Weaknesses:

• Latest mechanized • High cost of

machinery. production

• Tremendous • Centralized
market positioning decision making

• Highly qualified • Weak image in the

and skilled international market
management
• Small international
• Highly Motivated market share
Workforce
• Less promotional
• Adequate financial activities
resources
• Lack of benefits
• Competitive and rewards for the
advantage employees

• Equipped with
MIS System

• Own power
generation plant

　
　

Opportunity:

• Organization Can
expand product lines

• Organization Can 　
capture new market
segments around the Threats:
world
• New Entry of competitors
• Organization Can
reduce the cost by • Buyer needs demands
proper utilization of changes
resources
• Political instability
• Organization Can
hire more well-
• Changed of government
educated and
policies
experienced person

　 • Globally Economic
instability
　
　
　

Detail of SWOT Analysis

Strengths:
• ISO 9001-2000:

Nishat textile is certified under ISO 9001-2000 and so it meets the requirement of
international standard and has a value in the mind of concern people.
 • Strong Security System

Nishat textile limited has a greater security system. There are different hidden
security cameras which capture the all moments.

• OKTEX 100:

Nishat is also Oktex 100 certified its mean that Nishat is satisfied to not
using hazard chemical using.

• High quality product

Nishat textile limited using advance technology like they have modern machinery
by which the quality of product produced is very high.

• Latest mechanized machinery.

They are using modern looms which they have purchased from Japan and France.
And by using that latest machinery the productivity of the employees are very
high.

• Tremendous market positioning

Nishat textile is one of the pioneer textiles in the Pakistan so it got the position in
the mind of its customer. And being an old textile company people are loyal with
it. Nishat has a better position in the mind of its customers.

• Highly qualified and skilled management

The management of Nishat is skilled they have hired the foreign graduate people
in their management and also experienced people from all over the country.

• Highly Motivated Workforce

They are providing better pay to their employees and also bonus to them which
motivate the workforce and they are doing well at work setting.

• Adequate financial resources

The owner of the Nishat is one of the richest persons of the Pakistan and they have
more plant and investment in other industries like cement, Bank, They have
adequate financial resources to meet their requirements.
 • Competitive advantage

Because it is an old textile and it has still keep its position in the textile market on
all others competitors in the nation wide which is its competitive advantage.

• Equipped with MIS System

They have a management information system by which the departments and

employees are connect with each other and they have a data ware house by which
they can share their resources easily.

• Own power generation plant

They have own power generation plant and Nishat is the pioneer in the private
organization who start the power generation. And also selling to the WAPDA its
produced power.

Weaknesses:
[

• High cost of production

The production cost is high because of not properly utilization of its resources.

• Centralized decision making

The decisions are made by the upper management which is weakness of the Nishat
because they have no proper idea about the situation and their decision can be not
fruitful for the company.

• Weak image in the international market

Because of the other textile specialized countries like China, Bangladesh etc the
international image in the textile sector is very weak. Those countries providing
cheap product to the market then Pakistan’s textile industries.

• Small international market share

Although Nishat has very strong in the national wide but it has small market
share in the global textile industry due to the sound competitors like china,
and Bangladesh etc
 [

• Less promotional activities

The advertising and promotional cost of the Nishat textile is very low it can take
advantage for more turnouts.

• Lack of benefits and rewards for the employees

Some facilities that other providing to their employees like Transport and medical
fee etc Nishat not providing to their employees because of which the productivity
of the employees decrease.

Opportunity:
[

• Organization Can expand product lines

Currently the Nishat not dealing in knitwear they can expand their product line by
producing knitwear. They have plants and the extra cost for the production will be
low for Nishat. And they also have better market repute.

• Organization Can reduce the cost by proper utilization of

resources

If the cost of different matters which is not utilizing properly is controlled by the
Nishat management they can produce more in a few costs. It has to develop a
further systematic process for controlling and managing resources.

• Organization Can hire more well-educated and experienced

person

They can take advantages by hiring more skilled people and they should hire
young, fresh and energetic staff for their betterment.

Threats:
• Buyer needs demands changes
Because of the research and development the design and the product of Nishat is
just satisfactory as compare to competitors in the globally and they are not
fulfilling the demand of customer.

• Political instability

Political instability effects the Nishat because of the quota system the company can
be restrict by the government to export.

• Changed of government policies

Government policies are changing day to day so it is a threat for the Nishat to
survive in such a changeable situation.

• Globally Economic instability

Because of the economic instability the Nishat affected a lot. Dumping system
which is rising on daily basis in the world can create many problems for the
company and any uncertainty in the world like 9/11 may affect also the overall
export.

PEST Analysis
Political Instability.

The political situation of Pakistan is not satisfactory. Due to the rapid change in
the Government every government sets its own new trade policies.

Govt. should apply sustainable policies for the beneficial of the exporters as well as
the investors.

Economic situation:

The economic condition of Pakistan can also affect the foreign investors increasing
inflation rate make the cost of production high and thus reduce the profit margin
of the investor.

Social situation:
The change in the lifestyle of the people affects the growing demand of the NTM
products. The change in the lifestyle and needs in different demographics also
affect the demand of the customers.

Due to all these changes NTM is performing excellent for the excellence
organization as well as for the customer.

Technological factor:

Technological advancement in all the sectors of the country has changed the entire
socio-economic environment. Especially in the textile sector there is a lot of
technological development.

NTM Excellent computerized machines and devices are installed in the NTM \has
made extension in its present setup by installation of well advanced technology
imported from Japan China and France.
　

Learning as internee
It was a tremendous experience that I have availed with devotion and
commitment. I have an interest in textile industry that’s because
Textile is the back bone of the economy of the country. But one thing I
want to share its not easy that looks it has a great toughness and
complications in its process but the overall it was nice and great. Here
I am sharing some of my learning regarding my internship in
different departments.

• First I met Mr. Yoshifumi Nariyama the sales representative of

KANAI from JAPAN who came to introduce some new products in
NML. I discussed about the marketing practices going on in the
international Textile market. Ie to target your customer after knowing
needs with product solution of the customer need.

• In the spinning unit I have learnt about the yarn construction and
the yarn specification and the process of cotton to yarn.

• I learnt that every problem is solved with a systematic process like

from the root of the problem.
 • I also performed some task in the spinning department like how to
calculate the no of frames for a specific order and how many days are
require for a specific order.

• I learnt about the marketing procedure and required of the

documents and dealing with customers. All the record is saved.

• During my internship I learnt about the value that customer is the

only who come first. The fulfillment of the demand of customer is our
basic motive.

• The quality control as well inception in the textile department

should be parallel.

• I learnt about the HR policies that how many types of hiring

Nishat textile limited is using. And what are the procedures of the
Nishat about HR matters.

• I learnt that in the textile sector the cutting and stitching based on
two rules

o (Length) (Length)

o (width) (Length)

Conclusion
　

Nishat Mills Limited is one of the leading groups in Pakistan. The system, the
management style, the policies & decentralized decision making environment is
really remarkable. This report is basically an attempt to identify the areas which
need to be improved.

In this era of technology, the “Information” is the key to success in the business.
This means that the successful businessman will be who will have the right
information at the right time. This comment leads to the conclusion that the
Information Sharing Process should really be improved.
　

The overall analysis is indicating that the company’s progress has mainly attained
through dedication of employees. The effectiveness of its management, their
willingness to take advantage of opportunities and face challenges of changing
economic picture, this all contributes to the very much improved and sound
position of company. This is really appreciable for the devotion and hard work of
all the employees of the company

Recommendations
Recommendations for Improvements are:

• At present facility of bonus is given only to production staff but

such incentives should also be given to Head office Staff.

• Special incentives should also be given to Head on Eid and on

other special days should be given to the workers.

• Medical facilities are given in mill but such facilities should also be
given to management.

• Different training courses should be arranged for the up lifting

and improving the quality of work for employees

• They provide transportation facility to only female employees I

think male should also be provided with conveyance convenience.
This will create the easiness for workers and reduce the wastage of
time.

• There is also a problem of work overload for the employees and it

should be control properly so that the employees are motivated.

• Employees should be paid extra for the work which they done after
working hours.
　
 Annexure
　

　
　
　
　
FORM OF PROXY
I/We______________________________________________________________

of________________________________________________________________

being a member of Nishat Mills Limited, hereby

appoint _________________

______________________________________________________________________
_

of ________________________________________________________________

or failing
him/her ___________________________________________________

of ________________________________________________________________

Member of the Company, as my/our proxy in my/our absence

to attend and vote for Me/us and on my/our behalf at the
Annual General Meeting of the Company to be held on
Monday, 31 October, 2005 at 11:30 a.m. at Nishat House, 53-
A, Lawrence Road, Lahore.

As witness may hand this ________________day of ________ 2005

Signed by the said member _________________________________

In presence of _____________________________________________

Signature of witness Signature(s) of Member(s

INTERNSHIP REPORT

NAVEENA TEXTILE (PVT) LIMITED

1. K.M off Bhoptian Chowk, Raiwind Road Lahore.

Telephone: (92-42) 5320062-66

Fax: (92-42)-5320067-68

ADVISOR:

MADAM SADAF RAUF

(Lecturer) Management Sciences

Presented By:

SHOUKAT ALI

MBA-FA04-75

COMSATS Institute of Information Technology

M.A.Jinnah Campus, Defence Road off Raiwind Road, Lahore

　
 Dedications

I dedicate this report to my loving parents whose prays, affection and support are
always a source of encouragement for me to reach at this destination and a humble icon
for others in future. My parent and teachers who give me real eyes that help me to leads
myself and others in the dark and cruel world.

Acknowledgment

At first I am thankful to Almighty ALLAH and the Holy Prophet (P.B.U.H), their
blessings have been with me in all good and bad times. Then I am grateful for the
thorough support by my advisor MADAM SADAF RAUF and also Mr. NAEEM
(Asst.Manager Admin), WAQAR AHMED (Merchandiser), for providing related
information on which this project is based. They were the constant source of inspiration
and encouragement that helped in completion of my internship.

　
　

Executive Summary

This report consists of my six weeks internship at NAVEENA exports (Pvt) Ltd. This
organization is situated in Lahore. The organization started its business from Karachi
since 1967.

The salient features of this report are NAVEENA’S organizational background, its
vision, corporate values and goals of the company. This report focuses its business
operations including major suppliers of the company, its overall marketing strategies,
Management Information Systems, its dynamic Human Resource, Purchase
Merchandising and import & export strategies in special. This report also enhances the
organization’s challenges in perspective to its domestic and international competitors.
The organization’s BCG matrix, marketing strategy, competitive strategy and thus the
analysis of all these operations is really a fascinating experience of mine. Finally, this
report is a nutshell comprises of my practical learning, recommendations and
suggestions.

　
　

Company Background

Group NAVEENA is a progressive name in the textile industry established in 1967 has
become one of the largest manufacturer and exporter of textile in USA and Europe.

When started it’s operations, it was a small dying and embroidery unit in Karachi.
Today NAVEENA exports comprises of three independent units, it offer distinctive
branded garments, producing six million pieces annually with special emphasis on
fashion apparel, NAVEENA apparel, is a broad spectrum of source houses
internationally.

Bond of Trust

It‘s bond of trust is consistent upon this remarkable notion given below:

“We are proud to have some of the most reputable name worldwide. This has been
achieved over time through the approach of work fast and work smart.

The bond of trust has been developed because of our ability to fulfill our commitments
to deliver the right product at the right time. Check and balances are placed from the
initial stages to eliminate any possibility of error.

Vision of Company

　
The company undertakes to apply the vision in letter and spirit under the following
guiding principles:

1. In time action

2. Clear understanding of customer’s instructions.

3. Clear communication with vendors

4. Clear instructions for production

5. Strict compliance with quality control system.

6. Total devotion maintains first class quality standard.

7. Absolute efforts for in time shipments

8. Career development opportunities for employees

MISSION STATEMENT

NAVEENA’s Mission statement, statement focused on its major commitments i.e.

Ø We make clothes that fit well, look good and most importantly feel
great when you wear them.

Ø We are committed to become number one supplier of causal clothing

around the globe.

　
 It’s Corporate Values

Ø Team work

Ø Integrity

Ø Excellence

Ø Commitment to buyer.

Ø Maintenance of consistent standard

It’s GOALS

Ø Continuous improvement.

Ø Customer’s satisfaction.

Ø Quality of product and system.

Organizational chart

CEO/OWNER

Director
 GM

Merchandising

Manager

Finance Manager

Production Manager

Export Manager

Quality

Manager

INTRODUCTION TO DIFFERENT DEPARTMENTS AT NAVEENA

 Merchandising

Flow of Information

Buyers Merchandiser PPC

· Material Planning

· Time & Action Plans

· Production Plans

Production Department

o Yarn store

o Knitting

o Dyeing

o Cutting

o Stitching

o Packing & Finishing

o Purchases

o Stores

　
 　

Merchandising

PURPOSE OF

MERCHANDISING AT NAVEENA

Merchandising is a global process through which products are produced, sourced,

and sold all over the world. Merchandisers must have leadership for the value
chain (developing, distributing, and selling products) in a global market.
Merchandisers need to see "the whole process" from product innovation through
consumer satisfaction. This requires logical thought processes such as problem
solving, decision-making, and resource management. It is a critical need for
merchandisers at NAVEENA, which has strong business background, yet it also
stays focused on fashion or other products that undergo continuous change in the
consumer-driven market.

Here, the merchandising department is mainly divided into accounts buyers. This
shows that there is individual or a team of merchandising, who takes care of a
specific buyer or account.

Merchandising serves the following purposes at NAVEENA:

Gateway:

It acts as a bridge between buyer and the company for communication.

Marketing:

Merchandiser has to market his company in order to increase his customers and
generate more and more revenue.

Costing:

Merchandise makes a cost sheet to see if the product is feasible or not in terms of
cost and revenue. Merchandiser has to calculate the cost of products including all
wastes and accessories to tell the final cost of the product to his customers.
Negotiation:

Merchandiser must have a negotiating power on the price to convince his buyers
on specific price to lessen the chances of loss.

Sampling:

Merchandiser must send the sample to his buyers for confirmation and
satisfaction. At this stage, Sampling is also done to avoid loss.

Information Management:

As merchandiser has direct contact with his buyers so the buyers have to give
information about their product’s requirements and if there is any problem the
merchandiser has to inform his buyers in return.

Implementation:

It is the responsibility of merchandiser to prepare the product according to the

requirement of buyer.

Production Follow Up:

Merchandiser must be aware of the quality, packaging and on time delivery.

Process of Merchandising

The following process describes how merchandising carries out its responsibilities
at NAVEENA:

§ Initial Inquiry

§ Initial Research & Development

§ Costing

§ Cost Sheet Approval

§ Order Booking Status Management

 § Sampling Process

§ Information Handling & Forwarding

§ Buyer Performance Review

Initial Inquiry:

An initial inquiry may be a simple fax describing briefly the target price *FOB
and product or it may be detailed package from a buyer describing in detail.

Initial Research & Development

Initial Research & Development or preliminary discussion is carried out with

RESEARCH AND DEVELOPMENT to see if the company has the capability to
produce the product in terms of man and machines.

Costing:

Merchandise makes a cost sheet to see if the product is feasible or not in terms of
cost and revenue. For this purpose a cost sheet is prepared, keeping in view the
styling and accessories to be used on the product.

Approval:

After the cost sheet is prepared it is presented to the CEO or any other approving
authority for approval. The approval is mainly granted keeping the profit in view.

Merchandising process continues if a specific cost sheet is approved.

Order Booking Status:

Once an order is received it is mentioned in order booking status. OBS is

extensively necessary to maintain the track of records, capacity optimization, and
planning further through OBS strategic planning is also carried out. It helps in
calculating cash in and out follow.

OBS is normally kept confidentially and it is only accessible to predefine personal.

Advantages of Establishing OBS(Order Booking Status)

Following are the advantages to establish the OBS.

 Ø Makes order follow up easier

Ø Allow better planning

Ø Helps in contingency optimization

Ø Helps in contingency planning

Ø Improves time management

Ø Improves coordination

Ø Helps in financial forecasting

This document must be kept confidential as it contains very sensitive information

access to be only allowed at a specific level, as per the policy of company.

Sampling:

It is the complete process through which sampling approvals are taken. It starts
from a proto sample and ends at shipment sample depending on the buyer as
different buyer have different sampling requirements. Samples may be paid or
free depending on the category, quantity, contract with the manufacturer.

Information Management & Forwarding:

All information received from the buyer is forwarded to the relevant department
in the factory as to PPC package, checklist, accessories etc. information is
provided which in terms is processed by the PPC and is forwarded to the relevant
departments to start production.

Buyer & Country Dependence:

It is always better to establish an optimum buyer that dependence on the buyer be

balanced so that just dependence on the buyer is also avoided and on the other
hand dependence on too many buyer is also not recommended.

Updating of OBS:

OBS could Management Information Systemlead document in case it is not

properly updated. Special checks need to be maintained for proper upgrading of
the OBS ad if data on the OBS is incorrect capacity and management could be
seriously affected.
 　

COST SHEET

Style Number: 26898 Fabric: S/Jersey

Season: 1Q 2003 GSM: 225

Buyer: Target Gauge: 24

Division: Men’s

Consumption of yarn: 5.67Kgs/Dzn 12.50 Lbs/Dzn

Process Cost/Unit TTL Cost

Yarn 55 Rs/Lbs 687.5

Knitting 10 Rs/Kgs 56.70

Dyeing 65 Rs/Kgs 368.55

Cutting - 　

Embroidery 2.5 Rs/Pc 30

Flocking - 　

Printing 6 Rs/Dzn 6
Accessories 15 Rs/Pc 1440

Stitching 120 Rs/Dzn 120

Inland Freight 20 Rs/Kgs 113.40

2822.14647

Total Cost/Dzn

30

Over Head % Rs 846.6

Mat + OH + Cost Rs 3668.8

25

Profit % Rs 917.2

Mat + OH + Profit Rs 4586.0

58

Exchange Rate TTL USD 79.1

Rs/USD

Price per Piece USD/Pc 6.6

Package

Package is basically the collection of information given by the buyer regarding to

specification, details and other related information about the specific product that
has to be manufactured.

Components of a package:

Package consists of the following components:

1. Cover Sheet
 2. Fabric Mill Sheet

3. Sketch Sheet

4. Accessories Detail

5. Size Specification Sheet

6. Packing Manual

7. Revision History

1. Cover Sheet:

It contains the general information about buyer, style #, garment, season, division.

2. Fabric Mill Sheet:

It contains the information about fabric for garment and it includes:

Division, style, season, type of Fabric, type of yarn, gauge, diameter, GSM, GSM
before and after wash, dyeing, details, finishing details and shrinkage etc.

3. Sketch sheet:

It contains the information about front and back view. It also includes the stitching
type i.e. (overlooks, main stitch, back stitch, folder, and flat lock).

4. Accessories Detail Sheet:

It contains the complete information about stitching threads, button material,

button color, and button thread. It also includes the size of button (16, 18, 20 or 22
line.) and that either buttons contain two holes or four. Line is the unit of button.

Type of Stitching

Ø Over lock

Ø Lock stitch

Ø Flat lock

Ø Folder stitch
Labels:

It also includes the detail of label with its size specification. There are three kinds
of labels;

Ø Main labels

Ø Size labels

Ø Care labels

Ø Tablet labels

Ø COO labels

And two main types of labels are as follow;

1. Woven Labels

2. Printed Labels

Accessories detail also contains detail about taps. There are three types of tapes.

1. Hearing Bone Tape

2. Plain Tape

3. Fusing Tape

Fusing tape further consists of two types;

1. Tear away

2. Non Tear away

Fuse able through glue while using iron.

Normal width of fusing roll is 40``.

　
　

Fusing Roll

Tear way is fusible while non-tear way is non fusible.

Stitching
Embroidery
Thread
Thread + Main Main Size Label
GMT Color
Code Label Label
Color Code 10%
Code Source Code Source
cotton
Style #
DTM

Stucco MD-
Red 0020 Red ML101 Futek SM-1 Futek
1001

Red MD
Green 0030 Green ML 101 Futek SM-1 Futek
1181

White MD
Yellow 0040 Yellow ML 101 Futek SM-1 Futek
10001

5. Size Specification Sheet:

It contains the size of garments.

X XX
Description Small Medium Large Tolerance
Large Large

Chest 1” below arm

23 23.5 24 24.5 25 + 0.5
hole

Heam Across
23 23.5 24 24.5 25 + 0.5
Shoulder

Cuff Opening _ _ _ _ _ _
 Arm Hole _ _ _ _ _ _

In SPEC sheet all values are taken in inches while tolerance means acceptable
deviation. Buyer gives all sizes.

6. Packing Manual:

Packing manual contains the folding details of a garment, printing details, and
material to be placed. It also includes hangtags detail, carton dimension details.

Packing Strategies:

There are four packing strategies;

1. Solid Color Solid Size

2. Solid Color Assorted Size

3. Assorted Color Solid Size

4. Assorted Color Assorted Size

Solid Color Solid Size:

According to this strategy all garments are of same size and color. e.g

Garments = 42

Color = Red , Size = Small

Solid Color Assorted Size:

According to this strategy color of all pieces is same while there is variation in size
e.g.

Garments = 42
Color = red

Size = Small, Medium, and long with ratio 1:2:1.

Assorted Color, Solid Size:

In this strategy color of garments is different while size is same.

Garments = 42

Color = Red & Blue

Size = Medium

Assorted Color, Assorted Size:

Garments are of different colors and sizes.

Garments = 42

Color = Red & Blue

Size = small & Medium

7. Revision History:

It includes all the changes required by the buyer afterwards e.g. buttons changed 3
to 2 or change in thread.

Ti also includes the revision description, date, time and initiating authority.

POLY-BAG

1. Types:

There are three types of poly bags.

I. Individual Poly bag:

Individual poly bag contain 1 pc/bag.

II. Blister Poly bag:

Blister poly bag contain more than 1 pc/bag in a carton.

III. Master Poly bag:

It contains more than one piece/bag.

2. Dimension:

10``

9``

Flap 3``

Fold Size L W

WxLxF

9.5`` x 10.5`` x 3``

3. Material/Transport/GG:

Printing

Weight of Carton

Instructions

Logos

Address

Buyer’s individual idea

Carton tape

Carton stickers

Cartons

Solid Color Solid Size:

Garments = 42

Color = Red

Size = Small

Solid Color Assorted Size:

Garments = 42

Color = red

Size = Small, Medium, and long

Assorted Color, Solid Size:

Garments = 42

Color = Red & Blue

Size = Medium

Assorted Color, Assorted Size:

Garments = 42

Color = Red & Blue

Size = small & Medium

Information Required For Carton:

Following information is required for a carton.

Ø Hang tags

Ø Tag pins

Ø Plastic Clips/Jet clips

Ø UVM (Universal Vender Mark)

Ø VMT (Vender Mark Ticket)

 Ø UPC (Universal Product Code Ticket)

These above accessories are used 1/pc and only tag pins are used 2/pc and jet clips
are used 4/pc.

Types of Carton:

· Regular slotted

· Telescopic carton

Regular Carton

　
Telescopic Carton

1. Dimensions

Flap

Height

Width

Length

LxWxH

28 x 26 x 8

2. Carton Printing

Ø Addresses (From & To)

Ø Carton Contents (Size, Color)

Ø Symbols

Ø Weight of Carton (With garments weight)

Printing Types

Ø 2 Side printing
 Ø 4 Side Printing

3. Carton Accessories

Ø Carton Sticker

Ø Carton Tape

Ø Carton Strapping

Sampling Management Process

Management is the process to do work on time, achieve target/goal on time while

using

All resources (machine, personnel, Human Resource).

Sampling is the complete process through which sampling approvals are taken. It
starts from a proto sample and ends at shipment sample depending on the buyer
as different buyer have different sampling requirements. Samples may be paid or
free depending on the category, quantity, contract with the manufacturer.

Sampling programmers can be a cost effective, tangible and highly visible method
of launching new product, boosting sales or re-educating lapsed users.

Sampling programs provide a conduit for consumers to experience product trials.

Product samplings and mailings increase brand awareness and result in additional
sales.

Sampling should be complete on time with resources;

Ø Initiate Sampling Process

Ø Sampling Budget (To Control Cost)

Ø Time & Action Plan of Sampling

SAMPLING PROCESS

Proto Type Sample:

This is the first sample given to the buyer. The sample is prepared according to
requirement of buyer and this is the rough sample. The range of sample is about 1-
2 to vary according to the requirement of buyer.

Comments on Proto Type:

Buyer gives his comments on sample and also recommends the changes in sample.

Counter Proto Sample:

This sample is based on the comments received from the buyer. For this sample, 2-
3 pieces are required.

Salesman Sample:

Buyer sends the samples in market by salesman to get market feedback from
customers it is done on 250-500 pieces or may exceed depending on season and
customer. Buyer has to sell these garments to check and view.

Samples

Market

Feedback

Buyer’s Design

Buyer’s Merchandisers

Manufacturer’s Merchandiser

Comments on Salesman Sample:

Feedback on ample from customer is send to merchandiser/ manufacturer.

Pre-Production Sample (PPS):

Manufacturer prepares it. All changes are confirmed on it. 2-3 pieces are required
in pre-production sample.

Approval of PPS:

It is the stage where a sample may be approved or rejected.

If accepted go ahead to next step and if rejected then there will be the process of
revision of previous steps. PPC department is also involved at this stage. Once
PPC is involved, no change in styling is acceptable.

Size Set Sample:

2-3 sets of different size are sending to PPC (planning production and control).
Manufacturer keeps one sample himself and one sends to buyer for cutting
approval. Its purpose is that buyer will make no change in cutting details. If he
makes some changes, he himself will be responsible for any loss/ damage.

Fit Sample:

No change in stitching is acceptable at this stage. 2-3 garments are used in fit
sampling.

Photo Shoot Sample:

Now the sample is ready fort shipment. Buyer picks some pieces randomly to test
its gauge, GSM, shrinkage. If all these are according to the requirement of buyer
then shipment is said to be ok. 15-20 pieces are picked up as a sample to test.

Shipment Sample:

This stage is the completion of total order. And the garments are sending to
shipment.

SAMPLING BUDGET

It consists of the following data.

Sampling budget

Knitting plan

Dyeing Plan
Accessories Sheet

Cutting& Stitching Plan

1. Sampling Budget:

It contains the general information about;

Buyer: Target Fabric: Mesh

Season: 3Q 2003 Pieces: 500

Style #: 295 Division: Men’s

GMT: S/S Polo with 1x1 Rib DTM body at neck.

2. Knitting Plan:

Knitting plan is used for the description of material to be knit.

F. Width
Description Yarn F. Width 36’’
26’’

Mesh 20 S Carded 200 　

Rib 20 S Carded 　 9’’

Total Width 209’’

Total # of Pieces = 500

Mesh for 1 Shirt = 400g

Mesh for 500 Shirts = 500 x 400 g

= 200,000 g

1000

= 2 Kgs

Total # of Pieces = 500

Rib for 1 Shirt = 18g

Rib for 500 Shirts = 500 x 18 g

= 9,000 g

1000

= 9 Kgs

Yarn Requirement:

20 S Carded = 209 = 5

45.36

Dyeing Plan:

Color C. Code Mesh Kgs Rib Kgs

250 x 400/1000 =
Red - 250 x 18/1000 = 4.5
100

250 x 400/1000 =
Navy - 250 x 18/1000 = 4.5
100

Accessories Sheet:

Description Factor TTL Material

250x200/2286 =
Stitching Thread Red 200m
22

250x200/4500 =
Stitching Thread Navy -
12

Main Label 1 1x500 = 500

Side Label 1 1x500 = 500

Label 1 1x500 = 500

Core Label 1 1x500 = 500

Twill Tape 1m 1x500 = 500

Poly bag 1 1x500 = 500

 Tissues 2 2x500 = 1000

Cartons
500/24 21 cartons
(24/Pieces/Carton)

Prepare By: ________ Checked By: _________ Received By: ________

Stitching Thread:

Small Cone = 2286m

Large Cone = 4500m

1m = 39.37’’

Cutting & Stitching Plan:

Color C. Code S M L XL TTL

Red - 　 100 100 50 250

Navy - 100 100 25 25 250

Total 　 100 200 125 75 500

Time & Action Plan:

Pieces = 500

Packing = 200Pcws/DAy

Stitching = 150Pieces/DAy

Cutting = 1day

Dyeing = 2 days

Knitting = 3 days

Yarn Package = 1 week

Fac
Yarn Req. Knitting Dyeing Cutting Stitching Packing
D
S.D E.D S.D E.D S.D E.D S.D E.D S.D E.D S.D E.D

28Jul 5Aug 9Aug 12Aug 15Aug 17Aug 20Aug 21Aug 20Aug 24Aug 23Aug 27Aug 7 S

Prepare By: ________ Checked By: _________ Received By: ________

METHODS OF BREAKDOWN

Following are the methods of breakdown.

1) Purchase Order

2) Production Summary

a. Ratio

b. Percentage

c. Direct given by buyer

RATIO METHOD

S M L
Color C. Code TTL
1 2 1

Red - 1/4x1000=250 2/4x1000=500 1/4x1000=250 1000

Green - 1/4x2000=500 2/4x2000=1000 1/4x2000=500 2000

Htr Grey - 1/4x3000=750 2/4x3000=1500 1/4x3000=750 3000

PERCENTAGE METHOD

(M
Color C. Code S (30%) (L 50%) TTL
20%)
 Red - 300 200 500 1000

Green - 600 400 1000 2000

Htr Grey - 900 600 1500 3000

DIRECT METHOD

In direct method the buyer gives all values.

(M
Color C. Code S (30%) (L 50%) TTL
20%)

Red - 1000 2000 3000 6000

Green - 　 　 5000 9000

Htr Grey - 　 　 6500 6000

FABRIC

CONSUMPTION CALCULATION

Following methods are used to calculate the fabric consumption.

Step 1:

Identify components of a garment.

Step 2:

Take finish width available from R & D.

Step 3:

Layout patterns + optimizes wastages.

Step 4:

Calculate length of layout.

Step 5:

Apply formula.

39.37 x 39.37 = 1550 yarn/pc/layout

L x W x 2 x GSM = ____________ = ___________

1550 No. of Pieces/day grams/Pc

While 2 = No. Of Layers of Fabric

Circular Knit consists of 2 Layers

Open width consists of 1 Layer

Step 6:

Add wastage.

Step 7:

Calculate / make plans.

Basic Terms:

Ø Open Pattern

Ø Close Pattern

Ø One Garment

Ø Components

Calculations:

Rib = 26’’

Fabric = 30’’

30 x 60 x 2 x 200 = 464.5
1550 2

= 233g/Pc

Neck Calculation:

Neck = 3’’ x 26’’ x 220 x 2 = 23 = 7.3g/Pc

1550 3

Cuff Calculation:

Cuff = 3.5 x 26 x 220 x 2 = 25.832 = 12.9g/pc

1550 2

Fabric = 233

Neck = 8

Cuff = 13

Total 254

Including small wastages

254 x 12 x 2.2046 = 6.72lbs/Dzn

1000

TYPES OF WASTAGES

Cutting:
It includes;

Excess planning

Small wastage 5 % included in layout

Large wastage 3 %

Dyeing:

It includes;

Dyeing wastage 6-9% normally for fleece

Finishing wastage

Knitting:

It includes;

Knit 2-2.5% wastage that is left over yarn wastage

Yarn Dyeing:

It includes

5-7% Yarn dyeing wastage

WASTAGE

ADDITION METHOD

There are two methods used for waste addition.

I. Progressive/ Step By Step Method

II. Direct Method

Calculation for Yarn Consumption:

Length = 60’’

Width = 25’’
No. Of Pieces = 2

GSM = 220

60 x 25 x 2 x 220 = 425.80g

1550

425.80 = 212.90g/pieces

Calculation for Rib:

Length = 5’’

Width = 30’’

GSM = 250

5 x 30 x 2 x 250 = 48.50g

1550

48.50 = 12.10g/pc

Wastages:

= 5.95 x 1.05 x 1.03 x 1.06 x 1.02

= 6.95Lbs/Dzn

RESEARCH AND DEVELOPMENT

Ø Research and development or RESEARCH AND

DEVELOPMENT is related with product development.
 Ø Concerned Merchandiser forwards the Fabrication Info to the
Product Library and will get the exact match.

Ø If there is required match, Documentation and Planning is done,

Merch is developed and PD Plan is made by the PD center.

Ø If there is no exact match, Technical evaluation (Pricing),

Documentation and Planning is carried out. RESEARCH AND
DEVELOPMENT starts working here. After that PD Plan is made by
the PD center.

RESPONSIBILITIES OF THE RESEARCH AND DEVELOPMENT MANAGER

Ø She decides the fabric styling, finishing Routes. He submits the

fabric in the Lab.

Ø He compiles the results.

Ø He sends the results to the buyer.

Ø If OK for the results, Data is inserted into the computer for making
the file. If result is not OK, we refinish the fabric.

Ø RESEARCH AND DEVELOPMENT sends the developed samples

to the P.I. Lab, for the quick wash and sees the results after the 3
washes and required GSM is produced. After the quick wash, 20-30 g
(weight) of the fabric is reduced just because of chemicals and
detergents. Maximum sample weight is 10 Kg but is according to the
merchandiser’s requirement. Yarn Count, Single Knit/Double Knit,
Width and GSM is calculated and observed in RESEARCH AND
DEVELOPMENT.

PRODUCT DEVELOPMENT PLAN

Ø It issues the work order, tells about the style, design, counts, gauges,
fabric finishing routes and fabric dyes.

Ø PD plan is send to the three departments; RESEARCH AND

DEVELOPMENT, SAMPLING, Sewing and ACCOUNT.

Ø One copy remains with the Merchandiser.

 Ø One copy remains with the PD- Officer.

QUALITY PLAN

Ø Quality Product Requisition (QPR) is made in RESEARCH AND

DEVELOPMENT.

Ø Within three days Quality Plan is issued from RESEARCH AND

DEVELOPMENT.

Ø Quality planning includes the “Consumption Sheet or Pattern

Efficiency” that is 85% required..

Ø Quality Planning also includes the “Garments to Kg concept”, that

shows that how much garments can be abstracted from the 1 Kg of
fabric.

Ø An independent and vertically integrated product development and

research center is one of its own kinds. It is a 35000 sq ft facility,
largest in Asia, designed to achieve the following

Fulfilling Designer’s Dreams

§ A facility where an idea can be accurately converted in to product in

quickest turnover rate.

§ Continuously developing and innovating new and exciting fabrics,

garments and finishes in line with ever changing trends in knitwear
world.

§ Ensuring reproducibility and predictability of new products for

production.

Meeting Merchandizing Requirement

§ Delivery of all types of samples with speed, accuracy, quality and

competitive pricing.

§ Prototype samples in 3-4 days in actual fabric and color.

§ Sales man samples in 2-4 weeks at actual production parameters

　
 MANAGEMENT INFORMATION SYSTEM Department

MANAGEMENT INFORMATION SYSTEM department more than 100

hardware computers in factory. He is responsible the maintenance and hardware
related problem. Look after of these computers.

Only available recourses are planned.

Software’s:

The software’s that are being used in NAVEENA Textiles are:

Ø Inventory management

Ø Fixed assets system

Ø Salary system software

Ø Piece rate related software

Ø Engineering system

Ø Attendance system

Security:

Login is provided to every user and password is provided, he can change

according to his convenience. In all organization we provide three types of login.

1. Home directory

2. Department share

3. Care drive

Home Directory:

Home directory the user can build folders, files. He is only responsible for
compiling and security for this data.

Departmental share:

The departments can share data with each other.

Care drive:

In care drive the departments can read only. Write facility is not provided because
security purpose.

Future plan:

In future plan they will implement the E Commerce for update the status of the
garments. They also plan to implement ERP step by step. They are using SQL
because this provides more security and cheaper than database.

HUMAN RESOURCE DEPARTMENT

Human resource department is responsible for

Ø Recruiting

Ø Training

Ø Compensation

Ø Performance appraisal

Ø Firing

Recruiting

In NAVEENA for management hiring three interviews are conducted if they are
experienced. If they fresh graduate then first written test is done after this initial
interview, and then final interview is conducted. This process is done for
management trainees.

For workers and officer level the head of department hire. His criteria will accord
job requirements.

Training
On the job training is mostly provided. But sometimes for management we
conduct seminars; in LUMS some lectures are scheduled. Some mangers they visit
to foreign countries for getting training.

Compensation

For management trainees they provide Rs.12000 and other according to job
requirement and skills of the employee. They also compensate according market
going situation.

For workers they are providing minimum Rs. 3000 according to government rolls.
For officers the G.M decide how much salary will be provided. This depends on
the nature of the job and skills, experience of the employees.

Firing the employees

If any employee is not doing his job very well then the Head of the department fire
the concern employee.

PRODUCTION PLANNING AND CONTROL

Production Planning and Control (PPC) is the nervous system of the organization
and its basic task is to receive information from the merchandiser and link it to the
production. It involves the Pre-Production Analysis to ensure quality and
reproducibility.

PPC has two further branches

A) Material Resource Planning

B) Production Planning and Monitoring

MATERIAL RESOURCE PLANNING

Material Resource Planning is done for the material procurement, like sundries,
yarn and fabric. It is basically done to analyze that how much is needed, what is
needed, when is needed, what is the cost of the material and how to acquire the
resources.
PRODUCTION PLANNING

It includes the planning like the Sewing Plan (we can also call it as the Master
Plan). Back Ward Production Planning is done and this Production Time Line
involves when’s and what’s of the production. Date Wise Plans are made from
work order to delivery.

MONITORING

It is the different entity. Monitoring is done for the whole production process and
in this we check out the planning implementation. If the planning is failed, re-
planning is done for that. Off- the- track and On-the- track planning is also done
by the PPC.

DOCUMENTS RECEPTION IN PPC

Two types of the documents are received by the in the PPC from RESEARCH
AND DEVELOPMENT and Cutting.

RESEARCH AND DEVELOPMENT

PPC receive Quality Plan from the RESEARCH AND DEVELOPMENT. In

this Quality Plan specification, quality, width, weight, dyes, gauges and
counts are mentioned.

Cutting

PPC receive Fabric Consumption Patterns from the Cutting department

and plans that how much fabric must be used.

DOCUMENTS GENERATION IN PPC

Store Plan

Store Plan can also be called as Accessories Plan. It involves all the documentation
about the sundries being used in the production of the order. It also involves the
information about Threads, Buttons, Sewing and Labels. Store Plan is basically a
Quantity Plan.

Dyeing Plan

It is related with the Dyeing of the fabric that how much fabric is required for an
order, and then it is converted in to the Acro fabric. It plans for how much dyes
and chemicals are required. For the procurement of the materials, PPC goes for
the purchase department.

EXTRA PLANNING

3-5% extra planning is done for the losses. There are some visible losses and some
invisible losses. Visible losses occur from cutting to shipment. Invisible losses are
being made in Dyeing process and Finishing Process. Any extra planning requires
extra cost. So for the additional planning and additional cost, PPC managers have
to go for the Chief Executive.

The Production Planning and Control is the nervous system of our organization
and undoubtedly it is our key success factor. The nucleus of NAVEENA and
Sarah’s remarkable success has been its impeccable system. PPC conducts detailed
pre-production analysis to ensure quality and reproducibility.

PURCHASE DEPARTMENT

Every aspect of organization for the manufacturing of the product like sundries,
stationary, parts of machineries that can be available locally, chemicals and dyes
etc. have to be purchase locally from the local markets. These are usually the
general items, involve local purchase
for the purchase of machines machinery that is not available in the local market,
import department involves in such purchases. This whole import department is
concerned with the high involvement machinery. They whole purchase department
is do not work the work order or purchase order. Things are purchased according
the buyer demand. No buying is done without the order. As such no inventory
level is maintained for such goods as these goods are utilized immediately and plan
is made for the minimum for the week. Three most important documents are used
in the purchase department.

Store Plan Store plan comes from the Store and purchase Requisition; It comes
from the warehouse. Buyer provides purchase Order and according to this the
store department make plan. It is made for one supplier only at one time only.
Demand of the supplier is mentioned in the purchase order. These documents are
used all over department.

MPR: Material Procurement Recognition

Every department issues this then the purchase department is responsible for
procurement.

MRP: Material Requirement and Planning

This document is used within factory for issuing the material.

EXPORT DEPARTMENT

EXPORT PROCEDURE

Purchase order is received from buyer through the merchandizing department. A

fax message is send to buying house/buyer for opening L/C. Expected Audit
date/time received and go-head is taken from concerned unit (manager) to carry
shipment. Arrangements are made for the transportation to move the consignment
by the road/train/air as per plan.

Funds arrangement for the transportation and custom clearance charges.

Shipment moves for the Karachi through the following ways. Eg. Truck, Train,
and Air. Rates are as per shipment volume.

Cargo lifting advice is fixed to custom clearing agent/ Forwarder/ Transportation.

Forwarder / clearing agent make arrangements for the custom clearance and
booking of the space at earliest vessel. Following documents are required for the
custom clearance. Detail is given following;

INVOICE

In Invoice following criteria is required.

Ø Consignee and Applicant Addresses

Ø Garment Description

Ø Garment Price and Total Invoice value

Ø Net and Gross Weight of Garments

 Ø PO (purchase order) no.

Ø Freight Terms; FOB/ C&F/ CIF/ Ex-Work Pakistan.

Ø From # & Date

Ø L/C. #(letter of credit)

PACKING LIST

There are following details in the packing list required as per buyer’s instruction
or mentioned in L/C.

§ Consignee and applicant addresses

§ Product description

§ Garment Style and color

§ Net and Gross weight of Garments

§ No. Of Pieces in the Carton and Carton Dimension also other

necessary information, which gives help for the custom clearance.

Export-FORM

E-FORM is issued and attested by the concerned bank.

VALUATION FORM

It is for the custom purpose to inform the value of the consignment to the State
Bank of Pakistan.

BILL OF ENTRY

Applicable only in case of the imported material used in the manufacturing of the
garments for the export purposes.

SHIPPING BILL

The forwarder prepares shipping bill. After the sub Management Information
Systems ion of the custom docs, by the forwarder, custom authorities check the
docs. And examine the shipment accordingly. They write the report on the
backside of the shipping bill and allow the shipment for the export from the
Pakistan. All these docs are then returned to the export department.

QUOTA PROCEDURE

Ø Arrangement of the quota for the exporting the above goods or the
garments as per category.

Ø Quota purchase from the open market/ EPB (export promotion

bureau)

VISA PROCESS

After receiving the Docs from the forwarder, Export Department prepares the
Visa docs, which are required for the export of garment to the following countries;
USA, CANADA, EUROPEAN countries.

The set of Visa with required docs is presented to P.H.M.A. for the issuing/
entering of the Passbook and the given serial numbers.

After this P.H.M.A. pass the Visa to the E.B.P. for the Visa issuance. Then after
the checking of the docs Visa is signed and stamped by the Director of the E.P.B
(textile section). All original docs are returned to the export department.

NEGOTIATION / COLLECTION

After the completion of the Visa process, we submit the docs in the Bank for the
negotiation/ collection. The docs are prepared according to the L/C. or the buyer
requirement.

DOCUMENTS FOR THE BUYER

Export department also prepare documents for the buyer for the custom clearance
of the shipment at the destination.

PAYMENT PROCEDURE

After the negotiation/ collection procedure of the docs, bank dispatches the same
to L/C opening bank, to realize the payment. Foreign bank is bound to realize the
same within the 10 to 15 days. After realization of the payment, our bank is bound
to issue the PRC within the working days.

REBATE CLAIM
After receiving the PRC, export department claims the duty draw back (rebate)
from the customhouse in Karachi or Lahore.

COMMERCIAL INVOIVCE

In the commercial invoice all the details are mentioned required under conditions
of L/C for the custom clearance and other necessary purposes.

PACKING LIST

It consists of color, weight, product code/other, coding numbers, no. of cartons,

carton dimension, and carton packing.

BILL OF LADING/ AIRWAY

This is according to the L/C terms and conditions.

SHIPPING CERTIFICATE

In this certificate the shipping line intimates that the vessel /flight is not affected
buy on Indian or the Israeli Flag vessel.

BENEFICIARY’S CERTIFICATE

It is according to per buyer requirement.

§ INVOICE: It is custom attached and details of the imported material are

also given, that is used in the manufacturing of the garment.

§ SHIPPING BILL: It is provided by the clearing agent and attested by the

custom authorities.

§ BILL OF LADING: in it all the required information is provided which is

needed for the custom clearance.

§ BILL OF ENTRY: We need detailed information like Description, Foreign

Exchange Rate, Insurance, H.S Code, Weight, Custom and sales tax duties
and etc.

　
 　

Business Operation

Management:

The management team of NAVEENA comprises of dedicated and highly motivated

individuals, laying much emphasis on teamwork and interdependency, which
brings synergetic results.

They bring with them, experience in the knitwear industry and diverse educational
backgrounds, both local and international.

NAVEENA has tried to develop a company culture where quality is given the top
priority, innovation is encouraged, system are followed and fool proof inspection
procedures at every stage of production and carried out.

Quality Standers:

Continuity in quality is an integral part of this organization. there is team of

professionals who head this department .their work starts from yarn till the end
product .strict quality control measures are implemented from the beginning and
at all subsequent levels to maintain standards .

Quality Emphasis:
The organization has already achieved ISO 9002 certification and has acquired
various quality certificates and awards.

Laboratory Testing:

The organization have a comprehensive lab to check dye lots .its the organizational
routine to check fabric for shrinkage, lot to lot shade continuity, color fastness to
corking etc.

Among other equipment the most noted are the data colors, spectra flash, tumbler
and washing.

Major Clients:

The organization is working with leading multinational companies and believes in

developing long term, sustainable relationships rather then “one time” commercial
contract. Organizational buyers are recognized and respected names in the
international apparel industry, including the followings,

Factory Facility

Factory area KHI 12000sq.yards covered area 175000sq .FT

Factory area LHR 5375sq. yards covered area 150000sq FT

No. Of employees-KHI 2500

No. Of employees LHR 1500

Gov’t departments involve with organization:

There are many departments, which are involved in term of Govt intervention in
the textile industry, which are followings,

CBR

Ministry of labor and manpower

Ministry of excise and taxation

Custom department
Quality standards assurance organization

State bank of Pakistan

Structure and design of organization:

Structure of the organization is flat and functional. And it is to some extend is a

mechanistic organization. But it is due to its mass production .The organization
along with its functional structures has horizontal linkage which is most necessary
thing in garment industry because of high quality consciousness.

Plant and Equipment:

The organization’s most of the plant and equipment is procured internationally,

configured to generate optimal production at all stages and to ensure high quality.

In term of knitting

Type Model Gauge Diameter No.

Auto striper (terrot) s4f-248 18 30 5

Auto striper (terrot) s4f-248 20 30 2

Auto striper (fuquhara) s4f-248 18 30 2Auto striper (fuquhara) s4f-248 20 30 1

Mini jacquard (terrot) s3p4f-148 18 20 1

Feed stripe (Mayer & cie) 1mv4 11 20 30 1

Feed stripe (Mayer & cie) 1mv4 11 20/24 30 1

Feed stripe (Mayer & cie) 1ml-bf 20 30 1

Eight lock double knit t130-9621 18 30 2

RIB (pai-lung) t130-9621 16 34 1

　
Flatbed machines:

Make Origin Gauge length Number

Matsuya Japan 14 80cm 16

Matsuya Japan 14 56 05

Dying

Yarn dyeing:

Description make capacity number

fong’s yarn dyeing H.K 30kg 1

Atyc yarn dyeing H.K 90kg 1

fong’s yarn dyeing H.K 200kg 1

fong’s yarn dyeing H.K 300kg 3

fong’s yarn dyeing H.K 750kg 1

atyc yarn dyeung H.K 850kg 1

fong’s yarn dryer H.K 300kg 1

these machinbes are wiuth a capacity of four batches.

Fabric dyeing:

fong’s 2t soft flow H.K 300Kg 1

Fong 3t soft flow H.K 500-600kg 2

Atyc –ht 4t soft flow SPAIN 900kg 1

Atyc –ht soft flow SPAIN 165kg 1

Winding machines:

SSM cone winder Switzerland 2000kg 4

Re-winder local 9000kg 6

Garment washing:

Suit lick washing machine H.K 4000/day 2

Finishing:

hyadro extractor local 60kg 1

Hydro extractor Taiwan 60kg 1

Tumbler (askmer) H.K 30kg 8

Tumbler (sutlick) H.K 30kg 2

tumbler (askmer) H.K 30kg 8

Tumbler china 60kg 1

Dryer (sanatax) Switzerland 5 ton/day 1

Stenator Italy 15ton/day 1

Fabric slitter local 500kg 1

Squeezer Switzerland 6000kg 1

Corino (slitting machine) Italy 12000kg 1

Monforts (6chamber stenter Italy 15000kg 1

With graving system)

Gravimeter system raising machine china 3000kg 1

Cutting /Embroidery:

Electric cutting machine KM (Japan) 12 heads 5

Embroidery machine tajima 6needles 1

Band knife nagi shing 1

Stitching

480 –sewing machines comprising along with 5 uni8ts having capacity of 22000
dozen garments /month.

Auxiliary equipment:

The organization has an in house repair, maintenance and development facility

classified under electrical and mechanical department. Currently the following
equipments are installed on the pre-Management Information Systems.

Equipment Made Specification Number

Boiler England 5.50ton/hr 1

Generator USA 375KVA 1

Generator USA 300KVA 1

Compressor Japan 1580lbs 4

The organization has a strong capacity of production, which also works as

competitive advantages in term of technology. The brands which the organization
is currently using all are of well named in industry. Which also work for attracting
the buyers towards organization, and helpful for obtaining order and fulfilling it
on time.

NAVEENA Dying
　

The dyeing process starts from the sample swatches that are sent by the Buyer.

Lab Functions:

Samples are prepared according to the needs of the buyer and the process is called
lab dipping. After the buyer then the dyeing approves the samples people follow
the production plan provided by the PPC.

Dyeing Process:

There are two types of dyeing

1. Yarn Dyeing

2. Fabric Dyeing

There are two Methods

1. Hi-Temperature dyeing

2. Atmospheric Dyeing.

Machinery:

In Yarn dyeing all machines are of Hi-Temperature. The capacities of the

machines are as following.

1. Machine 1 is 800kg

2. Machine 2 is 90 kg

3. Machine 3 is 30 kg

4. Machine 4 is 200kg

5. Machine 5+6+7 is 300kg each

6. 8th in line is only drier of 800kg.

In fabric dyeing three machines are hi-temperature and rest is atmospheric. The
capacity of the machines is as following.

1. Machine 1 is 700 kg

2. Machine 2 is 150 kg

3. Machine 3+4 is 550 kg

4. Machine 5 is 350 kg

5. Machine 6 is 50 kg and is named as winch machine.

6. Machine 7 is 20 kg and is also winch machine.

After the dyeing fabric is transferred to finishing.

Reasons for dyeing:

For attractive purpose

For uniformity

Shade variation controlling

Color gives:

More comfort

More satisfaction

Process flow:

Singeing

To remove protruding fibers

De –Sizing

To remove the size for uniform dyeing (over dry)

Scouring
To remove added and natural impurities

Detergents

To remove soil and keep it suspended in

Water. So they don’t penetrate again in the fabric.

Bleaching

Removing of color

Changing absorbency

Mercerization

Length of fiber

Fineness of fiber

Types of dyes:

Reactive dyes make covalent bond

Disperse dyes make a penetration

Vat dyes make a trapping

Sulphur dyes -

Direct dyes make a overlapping

Component of dyeing:

Temperature

Salt

Machines

Factor effect the cost:

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General requirements by buyers

· Strong color bonding

· No bleeding & staining

· After twenty washes no change in color

· No absorption affect on garment after twenty

washes

Recommendations for cost control in dyeing house:

1. Compare the cost with competitors

2. Before selecting the product consider followings;

q Price

q Quality

q Availability

q Performance

q Packing

q Storage

q Concentration

q Final cost

q Compatibility
 q Environmental factors

Required expertise:

Electric and electronic work

Mechanical work

Machine / work knowledge

Responsibility:

Maintenance Manager / Knitting Manager

Benefits:

a. Less stoppage

b. More production

c. High quality

NAVEENA Knitting

There are two kinds of knitting:

· Flat knitting

· Circular knitting.

These both categories of knitting are being performed at NAVEENA 2 facility.

Let’s take a brief over view how it is done.

Flat Knitting:

The purpose of flat knitting is to prepare collars and coughs. They are given the
fabric by circular knitting department and after that the technician at the flat
knitting machine feeds the designs according to the demand of the buyer. They are
given a complete production plan by the PPC department, which they need to
follow to get the desired result.

Machinery:

For the purpose of flat knitting NAVEENA 2 facility flat knitting department is
equipped with 21 automatic flat knitting machines. Three operator’s one helper
and a master manage them. The capacity of each machine is 250 sets in 24 hours,
and according to the statement of machine operators they are easily achieving the
maximum capacity on regular basis. All the machines are 14 gauge machines,
which mean every machine can have 14 needles per inch. The more the gauge
better will be the quality. Common error is that of needle break, which spoils the
whole fabric if not detected at once. Setting the needles in the machine according
to the requirement is an art and the master has to be the master in this art to get
the desired result and to avoid error.

Maintenance:

There is a separate maintenance department present but there is no concept of

preventive maintenance, only break down maintenance is done which costs the
organization much more than the preventive maintenance.

Quality Parameters:

The quality checkers inspect the flat knitted fabric on the basis of Wales and
courses. They check whether the whales and courses per inch meet buyer
requirement or not. Wastage of 2 % is allowed.

Circular Knitting:

They again get their line of action from the PPC department. The purpose of the
circular knitting is to convert yarn into fabric.

Machinery:

There are total 15 machines 9 of them are computerized and called auto machines.
These machines are capable of making maximum stripes on a fabric while using
four colors at a time. The auto machines are mostly used for the preparation of
fabric of dark colors and having stripes or repeat. The remaining six machines are
called feeder machines. They cannot make a stripe more than 2.5 inches on a
fabric. Mostly they are used for simple fabrics of white and light colors. Each
machine is capable of producing 150 kg per day. A total of 192 cones of yarn can
be added to a single machine of four different colors, 48 cones belong to each color.
One person handles each auto machine and two feeder machines are under one
person. There is a supervisor and a master present to keep check on the things.
The machinery is not capable of producing French terry and fleece fabric. Any
order of these two fabrics is outsourced. All the machines have flexible gauge
facility, which is set according to the buyer requirement.

Quality Parameters:

After the fabric is prepared it is checked by the quality personnel on a machine

called clatter machine, using the 4 point system. This machine enables the quality
personnel to detect various defects in the garment, after detecting the error they
mark it and send for appropriate corrections. The errors, which cannot be
removed, are then cut off in a way that their effect should not be on the finished
garment.

Finishing:

The finishing can be termed as the process for drying the fabric. First of all the
fabric is transferred to hydro machine which squeezes the water out of fabric.
Then the fabric whose rate of shrinkage is more is sent for tumbling which is the
traditional approach for drying and the other fabrics are transferred to tenter
fesaro + compactor machine, where fabric is straightened. The machine is hi-tech
and fully computerized. Then the fabric is transferred to slitting and squeezing
machine. After that comes in the stenter machine having six chambers. After that
the fabric goes through the erasing machine which smoothens the fabric mostly
fleece is erased. Now fabric is ready and is transferred to NAVEENA 1. All the
machines are of hi-technology and produce great results. A dryer is in the process
of being set up and will soon be functional increasing the efficiency of the finishing
section.

Quality Parameters:

The quality personnel check the quality after the erasing and the main
concentration is upon the variation of shades. If the fabric shade varies then it is
sent back for re dyeing. The sophisticated fabric in whom there are more chances
of shade variation it is even checked during the dyeing process by the quality
personnel.

Cone WINDING:
It is of two types:

Ø Soft winding

Ø Re winding

Soft winding:

The yarn when firstly come is hard .the cone winding department re wind it to
make it soften. Then it become easy to dye and the dye quality become higher.

Re winding:

After dyeing of the yarn it is re winded and is transferred from spring wind to the
paper wind.

The biggest draw back is that there are no control checks what so ever in the cone-
winding department. If any thing Management Information Systems the eye of
supervisor then any error can easily go through

Major Suppliers

Din spinning

Sapphire

Ejaz spinning

Azgard9

Dewan Mills

Nishat Mills

Hussain Mills

Factors Affecting on Organization in Term of External Environment

There are factors which are currently affecting the organization and are as follow:

Gov’t policies
 　

As the policy of Gov’t changes it directly effects organization because there are
many factors, which entice the organization with Gov’t

· Tax policy

· Rebate

· Quota

· Industrial policy of Gov’t in term of garments manufacturer.

· Subsidies from Gov’t.

· Labor policy

Brands

Side out

High sierra

Antigua

Cherokee

Amc –stores

Aeropostale

Phat farm

Roots

Hard rock café

Hollister

Brake water Perry Ellis

Wal-Mart

The company devotes considerable time and effort to consolidate its present
relationships and develop new ones, agin, with the goal of establishing
relationships, which are long term and diversify the company client base.

Suppliers of organization:

The company also has the list of compatible suppliers and includes them in term of
stakeholders and used to facilitate them with the maximum beneficial way to
develop long-term relationship with them. The supplier side is although most
critical aspect of the organization in term of quality and quantity because of the
large-scale production in NAVEENA.

Organizational Culture

NAVEENA consider its employees to be its biggest assets. Adequate facilities exist
and are constantly upgraded to improve the social environment.

The organization has following statement for their social culture

“We strictly, under all cost, forbid child labor and forced labor”

Competition

There is a big competition between industry .in term of taking orders and the main
aspect is price of manufacturing garments. There is less innovation and
differentiation in products.

So, because the commodity is same and due to witch there is cost factors which is
very high and directly effect organization.

Domestic competition

· Masood
 · Ammar

· Leisure

· Irfan te

· Shah –
textile

· Angora

· Combin
fabrics

· Comfor

· Mian s

These are all major competitors of the organizations, and all are Lahore based.

International Competition

The overseas competition is now –a –days very less but it will become very high
after the remove of ATC .the organization has to develop its self from now to be in
market in future. Because in that huge dynamic e4nvironment there will be more
dimensions in organization to meet with uncertainty.

It can be come from:

· Singapore

· Bahrain (because the USA made a contract with UAE)

· China

· Bangladesh

· Thai-land

· Honk –Kong

· Malaysia
 　

Technology:

Technology is also a key sector in term of external environment for garments

industry. Because the technology is also working as a substitute for man power
with more efficiency. The industrialist has a solid point that it also saved cost i9n
term of

· Error reduction

· Les labor cost

In order to compete internationally the organization must have to depend on new

and advanced technology. Although the technology, which NAVEENA is using not
very low but there is no end in business.

Structure and design of organization:

The structure of organization is functional with horizontal linkage.

The organization has mechanistic design and which is working on the basis of
efficiency, which means more production, maximum out put from least input.

SWOT ANALYSIS OF NAVEENA

During my internship I observe some strengths, weaknesses, opportunities and

threats for Naveena are given below.

STRENGHTS

Ø Big buyers from market

Ø Well known strong suppliers

Ø Strong departmental structure

 Ø MANAGEMENT INFORMATION SYSTEM
department

Ø Quality Provider

WEAKNESSES

Ø Not a big player in market

Ø Low integration between departments

Ø Too much decentralized the departments.

Ø No RESEARCH AND DEVELOPMENT

Ø No marketing research

OPPORTUNITIES

Ø In WTO(World Trade Organization) implement

quota will free this will be opportunity for
especially NAVEENA because he can produce
much more.

Ø Many brands we can start like sports garments.

Ø Expansion of business

Ø Diversification In term of open trade

Ø Capture local market

THREATS

Ø New entries in the market like small level unit

after WTO implementing.

Ø China and India is big threat when quota will

free

Ø Differentiation
 Ø Switching of buyers

Ø No Isolation

Ø Persistent quality

Ø Low price from other countries

BCG MATRIX FOR NAVEENA

Boston Consulting Group Matrix (BCG MATRIX)

The BCG matrix measure market attractiveness by market growth rate and it
assesses the firm ability to compete by, its relative market share. The BCG matrix
assumes the causal relationship between market share and profitability.

Stars

Questionmark

Cash cows

Dogs

There is a huge slum in garments industry, after the incident of 9/11. This is
directly and indirectly affecting the whole market. But NAVEENA is the
organization working quite well, even in this situation and earning from
international market. That’s the sign due to which I analyze that the NAVEENA is
a cash cow in term of BCG matrix.

Competitive Strategy

　
 Ø In garment washing
different effects is
provided to customer.

Ø Value added products

are provided.

Ø Pull and push strategy

is adopted

Ø Performance is better.

Marketing Strategy

§ The product improvement will be marketing strategy.

§ Product innovation

§ We make reasonable price against market.

§ Outlook of garment is very smart and excellent. This is accepted in

the market.

§ Targeting the young people and using price strategy to satisfy them.

Marketing Analysis

The structure of organization is quite well but the design is not. Because the
coming trends are moving very fast. And in the end of this year the environment
that is now-a-days stable will become dynamic. Then there will be need of

Differentiation
Added features Effectiveness

Quick response to changes

More flexibility

More complexity

Competitive edges not one but more then that.

It’s a big process, which can’t be achieved in day’s .It take lot of time to enhance
theses capabilities in organization. Either to sit a side and looking on trend‘s
changing the organization has to do a lot.

Practical learning

ECRU YARN STORE AND CONE WINDING

. At first I get the information about Ecru Yarn Store that how after the order of
buyer a company bye the ecru yarn and store it according to W/O. After that I got
the information about Cone Winding that how it works and what are the functions
of cone winding.

YARN DYING / LAB AND CIRCULER KNITTING AND FLAT KNITTING

I learn about the yarn dying that how an ecru yarn dyed and after dying process
how it preserves. Then I attached with the process of circular knitting and flat
knitting and learn about these two processes and its importance.

ECRU FABRIC STORE / LAT MAKING AND FABRIC DYING/ PI LAB

I learn about the process of maintaining ecru fabric store and lat making. After
this knows about the process of fabric dying and then there was a difficult and
main process of approval and rejection of fabric in PI lab. NAVEENA following
the international standards of approving and rejecting the dyed fabric.
DYING FINISHING AND DYED FABRIC STORE

Today I learn about the process of finishing the dyed fabric and how the fabric get
ready for the next process and after this after all quality checks the fabric is ready
to next process and for this it preserve or store in dyed fabric store.

PPC DEPARTMENT (PLANING PRODUCTION AND CONTROLLING)

.It is one of the major department of any textile Industry without having god
professional it can not work so knowledge about PPC is very much useful.

PRODUCTION SHEET

Production sheet is given from buyer and buyer tell his requirements actually all
the specs is given in this sheet, so according to this sheet we develop the required
garment for approval and also we analyze the cost as well.

RESEARCH AND DEVELOPMENT (RESEARCH AND DEVELOPMENT)

In RESEARCH AND DEVELOPMENT we analyze and finalize the root of fabric

that how it will complete and in finishing how it approaches the buyer
requirements, actually we get all the lengths and get the information of cost as well
and other things about the roots.

CONSUMPTION

After getting the all the lengths of garments we know about the consumption and it
is known by the defined formula of body and sleeve. we get the sum of body and
sleeve and get the consumption of garments.

ASSESRIES

In this we plan about how much accessories will be used in garment and also
wastage factor will be added in it.

COSTING

In this process we added all the consumptions and compare it with the buyer rate
if it is less than the buyer rate then it will be accepted otherwise not.

CONTROLLING
We the plan is accepted than according to due date every day PPC check that how
much process is completed and how much time remaining will take. So process is
checked at every stage.

Merchandising Department

I join the merchandising department and get the whole information and briefing
about the merchandising department and its functions that are done under
merchandising.

I learn about the basic functions of merchandising that how after the order of a
buyer it works and what are the basic function like reading of spec sheet and other
information about the specs.

PROTO SAMPLE AND COSTING

I learn that how to make a proto sample and how define the costing of that proto
sample. After making a proto sample and costing merchandising department send the
sample for approval.

FIT SAMPLE

After getting the information merchant made a fit sample and sends it to the buyer
for the final approval. It is a core process and I today I learn about this process.

SALE SAMPLE

I learn about the process of sale sample the how this process is occur and one thing
that is learning in it that the price of sale sample is doubled than the other
garments. It is not the requirement of all the buyers but few buyers get the sale
sample.

CONFIRMATION OF ORDER

I learn about that what happen after confirmation of order, after confirmation of
order merchant demand to buyer to give accessories detail so that he can start the
production.

SCHEDULE ABOUT TESTING

I learn that how get the schedule of testing the garments. Actually it is necessary to
know about the schedule because after confirmation the order it is 1st requirement
that have to fulfill first and after this bulk production is started.

SIZE SET AND PRODUCTION

Today I known that what is the importance of size set before stating the bulk
production. Merchant made all sizes and gets the confirmation of all sizes from
buyer then starts the next step.

These days I spent with the merchandiser that how he works when order is
confirmed and how the whole process is completed. Actually it was a practical
learning and no documentation was involved in these days

Issues and Suggestions

Suggestions and recommendations for knitting and dyeing

Ø There should be a preventive maintenance

scheduled program.

Ø Effective maintenance is also important to get

maximum utilization of machinery.

Ø In flat knitting department the quality inspection

machine is not working. That should be repaired.

Ø Keeping high quality is not only the

responsibility of quality department, but it should
be embedded in each employees mind. Every
employee should take it as personal responsibility.

Ø There is only one hydro machine in dyeing; it

must be two .So the lot loaded on trolleys doesn’t
have to wait for long time.
 Ø There should be clearly written standard about
the demand of buyers’ requirements about the
production.

Ø Quality measures should be clearly defined,

written and hang on the departmental walls.

Ø Raw material should be properly stored, because

they’re hazardous if stored in knitting department.

Ø Common error of fluff, which is only due to the

non-cleanliness of the production floor. And due to
which a lot of quality problems are occurring
which increase both the time and cost.

Issues and Suggestions, regarding production, planning and control:

The biggest draw back in the time and action plans of PPC in NAVEENA is that
there is no contingency planning in advance it is a general rule that while planning
production some cushion is given for activities such as machine break down or any
other extraneous variables that can take place. The problem is addresses only
when it occurs. There should be planning in advance for that in order to minimize
the effects of a problem that has occurred.

Issues and Suggestions, regarding time and action plan:

The most common issue is of coordination Management Information System takes

that lead to enormous losses at the end of the day. According to PPC personnel due
to some Management Information System takes by merchants in providing
production summary they end up making garment, which was not required at all.
In order to avoid this kind of scenarios the merchants need to be absolutely sure
what is required and the PPC personnel should clear any ambiguities before going
for production and should recheck with the merchant the basic requirements.

Although there is a co-ordination manager present but still personal interest of all
the departments is required in order to make the coordination free of any doubts.
There should be clear lines of communication established between the
departments. Every concerned person should know what is going on and what was
required so that controlling should not only limit to the PPC department. From
Knitting to Finishing every responsible person should have a clear idea what he
needs his team to do.

Limitations:

Buyer due to the fact that the merchant cannot forward the purchase order gives
Some times the co-ordination gap to PPC, as it is a secret. Only production
summary is prepared and is given to PPC so if merchant makes a Management
Information System take in interpreting the PO there is no way PPC can come to
know about if there are any ambiguities in the production summary? Sometimes
the merchant delays in forwarding information as it arrives to him resulting in
delay to initiate the production process.

Conclusion

Form my experience of six weeks in this organization I have learnt many things.
The most important is that practical professional life is very hectic, competitive
and tough. The best thing, which I am able to find out, is that the stronger the
culture of the organization better will be the productivity.

In textile sector the thing of immense importance is how well the organizational
personnel communicate with each other. There is no room for personal grudges
because each and every one depends on each other if any one screw up the whole
organization suffers.

BIBLIOGRAPHY

· Company profile I got the information regarding vision statement, core

values.

· SWOT information gets from Senior Managers.

 · HRD information get form HR Officer.

· Export related data gather from Export Manager.

· Import related data gets from Import manager.

· Merchandising related data from merchandising manager.

· Process related data collect from different departmental heads.

GLOSSARY

GSM: Stands for Gram Square per meter.

MMC: Stands for material Management and Control

MPR: This means Material Procurement Requisition

MIR: This stand for Material Issue Requisition

GPR: This means Gate Pass Requisition

GRN: Stands for Goods Received Notes

BRS: Stands for Bank Reconciliation Statement

SAN: It means Sales Notes

OGP: Stands for Outward Gate Pass