Imperial Textile Mills Limited1 TABLE OF CONTENTS ACKNOWLEDGEMENT ............................................................................................................................................ 3 EXECUTIVE SUMMARY ........................................................................................................................................... 4 PAKISTANI TEXTILE INDUSTRY ............................................................................................................................... 5 INTRODUCTION TO IMPERIAL TEXTILE MILLS LIMITED ........................................................................................... 7 QUALITY POLICY ............................................................................................................................................................. 8 VISION STATEMENT ........................................................................................................................................................ 8 COMPANY PROFILE ......................................................................................................................................................... 8 PURCHASE DEPARTMENT .................................................................................................................................... 12 RAW MATERIAL PURCHASE ................................................................................................................................. 12 PROCEDURE TO PURCHASE THE RAW COTTON .................................................................................................................... 14 PROCEDURE TO PURCHASE THE POLYESTER ........................................................................................................................ 15 SPARE PARTS AND GENERAL ITEMS ..................................................................................................................... 15 PROCEDURE TO PURCHASE THE GENERALS ITEMS ................................................................................................................ 17 PROCEDURE TO PURCHASE THE CALIBRATION/REPAIR SERVICES ............................................................................................ 18 PROCEDURE TO PURCHASE THE PACKING AND LOADING SERVICES .......................................................................................... 18 PROCEDURE TO PURCHASE THE TRANSPORTATION SERVICES ................................................................................................. 18 PRODUCTION DEPARTMENT ................................................................................................................................ 20 THE PRODUCTION PROCESS ................................................................................................................................. 20 RAW MATERIAL GODOWN ............................................................................................................................................. 20 MIXING AREA AND BLOW ROOM ..................................................................................................................................... 20 CARDING .................................................................................................................................................................... 21 DRAWING ................................................................................................................................................................... 21 SIMPLEX ..................................................................................................................................................................... 21 RING .......................................................................................................................................................................... 22 AUTOCONE ................................................................................................................................................................. 22 PACKING .................................................................................................................................................................... 22 HUMAN RESOURCE DEPARTMENT ....................................................................................................................... 24 RECRUITMENT AND SELECTION ....................................................................................................................................... 24 ORIENTATION .............................................................................................................................................................. 28 TRAINING ................................................................................................................................................................... 28 TRAINING PROCEDURE .................................................................................................................................................. 28 SALARY ...................................................................................................................................................................... 29 ALLOWANCES .............................................................................................................................................................. 30 ATTENDANCE AND LEAVES ............................................................................................................................................. 30 Imperial Textile Mills Limited 2 SERVICES DEPARTMENT ....................................................................................................................................... 32 AIR CONDITIONING ....................................................................................................................................................... 32 ELECTRICITY CONTROL ................................................................................................................................................... 32 POWER HOUSE ............................................................................................................................................................ 32 WORKSHOP ................................................................................................................................................................ 32 SWOT ANALYSIS .................................................................................................................................................. 33 STRENGTHS ................................................................................................................................................................. 33 WEAKNESSES .............................................................................................................................................................. 34 OPPORTUNITIES ........................................................................................................................................................... 35 THREATS..................................................................................................................................................................... 36 PEST ANALYSIS ..................................................................................................................................................... 38 POLITICAL ................................................................................................................................................................... 38 ECONOMICAL .............................................................................................................................................................. 39 SOCIAL ....................................................................................................................................................................... 39 TECHNOLOGICAL .......................................................................................................................................................... 39 SIMILARITIES AND DIFFERENCES .......................................................................................................................... 40 SIMILARITIES ............................................................................................................................................................... 40 DIFFERENCES ............................................................................................................................................................... 40 RECOMMENDATIONS .......................................................................................................................................... 41 WORK DONE DURING INTERNSHIP ...................................................................................................................... 42 PURCHASE DEPARTMENT ............................................................................................................................................... 42 PRODUCTION DEPARTMENT ........................................................................................................................................... 42 HR DEPARTMENT ......................................................................................................................................................... 43 LEARNING AS INTERNEE ....................................................................................................................................... 43 Imperial Textile Mills Limited 3 Acknowledgement All praise to Almighty Allah alone, the most Merciful and kind, whose uniqueness, oneness and wholeness is unchallengeable, who guides us in difficult and congeal circumstances. The words are bound, knowledge is limited and time is short to express His dignity. It is one of infinite blessings of Allah that he gives me with the potential and ability to contribute towards the deep oceans of knowledge already existing. All respects to greatest personality of the universe; Holy Prophet Hazrat Muhammad (SAW) who is forever a source and spring of guidance in every subject of life and who enlightened our minds to recognize our creator. I am thankful to my worthy teachers and my department for their inspiring guidance and constructive criticism that gave me an opportunity to learn how a real world looks like and to gather knowledge which will really help me in my near future. I am also very thankful to Mr.Idress, Mr.Zahid Khan of Imperial Textile Mills for their efforts and careful supervision during my internship, who were there to help me with my queries. I might not be able to complete my internship without their cooperation and kind behavior. Imperial Textile Mills Limited 4 Executive Summary The basic objective of the report is to explain my learning and work done in the six week internship program at Imperial Textile Mills. This learning experience is described in detail in the different sections of this report. 1) In the first section I have provided some detail about the current textile situation of Pakistan. After that a brief introduction of Imperial Textile Mills Limited is provided 2) The second section explains some of the major departments in Imperial Textile Mills Limited. Some detail on what are the tasks they are performing and what they are managing and why they are important for Imperial Textile Mills Limited. 3) The third and last section includes the SWOT analysis, the PEST analysis, some recommendations of mine to Imperial Textile Mills Limited and my learning as an internee in Imperial Textile Mills Limited. Imperial Textile Mills Limited 5 Pakistani Textile Industry It wouldn’t be wrong if I say that textile industry is the largest industry of Pakistan. Over 40 percent people of Pakistan are directly or indirectly associated with this sector. After the independence from British rule, the subcontinent was divided in Pakistan and India, where Pakistan consists of East Pakistan that was famous for jute production, and West Pakistan that was responsible for cotton production. In the beginning, as there was no industrial base in the country, and it only owns one textile mill named as Lyallpur (Faisalabad) Cotton Mill with the capability of producing yarn and gray cloth and no printed fabrics, so Pakistan has to export its raw material production to other countries which was little bit profitable but not as much as it should be. But as soon as government realized that this trend is not beneficial for the long run, they introduced Open General Licensing Scheme (OGL). With the help of OGL the business community started to import plants and machinery with cash dollars. In 1950, Adamjee Mills started the work in Karachi, Kohinoor in Faisalabad, Colony Textile Mills in Multan, Nishat and Crescent Textile in Faisalabad. These were followed by Gul Ahmed Textile Mills, Al-Karam, Star and Rashid textile mills. And according to a 2008 report the number of textile units is Imperial Textile Mills Limited 6 With total working capacity of The share of textile industry in the economy of Pakistan along with its contribution to GDP, employment, exports, investment, foreign exchange earnings, and value added makes it the largest manufacturing sector for Pakistan. According to Pakistan Economic Survey and APTMA the contribution of Textile Sector to the economy of Pakistan is given below. The product variety ranges from cotton yarn to knitwear. Garment made-ups and bed wear are the most important export products with an export value of about $1.35 billion each. Knitwear, readymade garments and cotton yarn also have important shares in total exports. Overall, the US and the EU are Pakistan’s largest trading partners accounting for 25 percent and 20 percent share of Pakistani exports respectively. Other major importers include China, UAE and Saudi Arabia. Imperial Textile Mills Limited 7 Introduction to Imperial Textile Mills Limited Imperial Textile Mills is a yarn manufacturing concern located at Khanpur Bagga Sher, MM Road Muzzafargarh. The Mill has started its operations since 1992. ITM is not so old but still a large textile mill. The mill is equipped with the state of the art equipment and machinery and is involved in the production of all kind of knitting and weaving yarn. And its main specialty is production of P/C yarn. The most part of the sales is generated from exports. Customer satisfaction from the point of order placement to after sales service is given priority over other aspects as it is the main component of the policy. In order to renovate and balance manufacturing facilities with the aim of bringing improvement in the products and expanding the product base, continuous reinvestment is made on a regular basis. Proper investment in the Human Resource Development is also the key function of the business plan of ITM. Attention is also placed on the concerns related to the environment of the workplace and the surroundings. For this purpose the mills is inspected on a regular basis to ensure that relevant environmental regulations are properly followed. Due to its good reputation ITM enjoys the confidence of both foreign and local customers and financial institutions. Imperial Textile Mills is ISO 9002 Certified. In order to face the difficulties and enjoy the opportunities that exist in the trade world of textile, Imperial Textile Mills is adopting and accepting the best quality management approach so that it may assure the best quality for its product consumers. Imperial Textile Mills have made many changes to improve their systems and is still striving for continuous improvements. So as a result of their dedication to Total Quality Management, new systems are successfully installed and the gaps are highlighted during regular evaluation for these systems usefulness. The Quality Management Systems of Imperial Textile Mills are ISO 9002 Certified, which is the global acceptable quality management system criterion to increase customer’s satisfaction. Imperial Textile Mills Limited 8 So in this regard, the top management of Imperial Textile Mills has defined a quality policy. Quality Policy The quality policy of Imperial Textile Mills acknowledges commitment to quality and its intent to maintain ongoing compliance with the ISO 9002 standards “We are committed to meet the customer’s requirements and maintain effective quality management system through active involvement of all employees” This quality policy is relevant to Imperial Textile Mills organizational goals and meets the needs of customers. The policy is communicated to employees through boards displayed in the factory premises, and through training sessions. The quality policy is understood and implemented through the management commitment the produce required quality products. Vision Statement The vision of Imperial Textile Mills is “To transform Imperial Textile Mills into a quality conscious textile spinning unit maintaining an excellent level of ethical and professional standards, thus contributing towards betterment of country's prosperity”. Company Profile Company Name: Imperial Textile Mills Limited CEO: Khawaja Masood Ahmad Business Type: Manufacturer Unit type: Spinning Products: Carded Yarn, Combed Yarn Brands: Imperial Employees: Above 550 Main Markets: China, Canada Imperial Textile Mills Limited 9 Machinery Detail Blow Room: Ohtori-Trutzchler, Carding: Crosrol UK / Howa Japan Lap Farmer: Toyoda SL-100 Japan Combers: Toyoda VC5A Japan Drawing: Reiter Germany/ Howa Japan Simplex: Howa, Japan Ring Frame: Howa, Japan Auto Winder: Schelafhorst Germany, Murata Japan, Laboratory: Swiss Humidification: Local Plus Luwa, Swiss Capacity Number of spindles installed: 16464 Production capacity: 6.133 (M) KGS Number of shifts per day: 03 Number of working days: 300 Nature of business The principal business of Imperial Textile Mills is Manufacturing yarn and clothes. Manufacturing Units The Manufacturing Units are located in Muzaffargarh and Faisalabad. Spinning Unit: Village Khanpur Bagga Sher, District Muzaffargarh. Weaving Unit: P-16, Bhali Road, Off Tariq Road, Cannal Park, East Cannal Road Faisalabad. Imperial Textile Mills Limited 10 Offices The head office is located at 4 th Floor, Institution Engineers of Pakistan Building, Gulberg iii Lahore, Dealing with imports and exports. Part of exports The company exports more than 90% of the production. Competitors Imperial Textile Mills is facing strong competition both locally and internationally. Many textile mills are competing with the Imperial Textile Mills. Some of the competitors are Mahmood Textile Mills Multan Spinning Mills Colony Textile Mills Ahmad Fine Textile Mills Imperial Textile Mills Limited 11 Purchase Department Imperial Textile Mills Limited 12 Purchase Department Raw Material Raw Cotton Polyester Spear Parts and General Items Spare parts and general items Transportation services Repair services Packing and loading services Purchase Department The main purpose of purchase department is to buy the required items either for production or items to continue the daily routine of tasks. So in this regard, the functions of purchase department can be divided in two parts. Raw Material Purchase Raw material purchasing is the most important function of the Purchase Department. Because the quality of the final product depends on the raw cotton that is purchased, so it become necessary to make sure that right thing is purchased. Special attention is also needed when there is business of exports; minor errors may result in a huge loss and puts a question mark on the credibility. People involved Following people are involved in the purchase of Raw Material General Manager: He defines, review and approve the raw cotton and polyester quality range limit. He then finalizes the “Internal Quality Standards” for cotton and polyester with Director. He is also responsible to demand required quantity of raw material with respect to production capacity. Imperial Textile Mills Limited 13 Director: He is responsible for purchase of raw cotton and polyester in accordance with the defined quality standards. Lab A.S.M: He is responsible to perform the visual inspection of the polyester fiber bales. Cotton Clerk: He is responsible for raw material receive and co-ordination with laboratory for the verification of quality. Evaluation and approval of supplier/broker for raw cotton procurement Raw cotton is one of the raw materials used in Imperial Textile Mills. The purchase of raw cotton is only made from the approved suppliers. All raw cotton is purchased from different areas of Punjab and Sindh directly or through approved Brokers. The Director evaluates and approves subcontractors for raw cotton and all the subcontractors are reevaluated after one year. This evaluation is made on the basis of ISO 9000 QMS/ISO 14000 EMS, Capabilities of meeting the product/service quality requirements, Timely deliveries, Cost competitiveness. All the evaluation records are kept in the Head Office. After the evaluation, when a contractor is selected, two types of Master Lists are prepared by the Account Manager in the Head Office Master List of approved Subcontractor, Ginners Master List of approved Subcontractor, Brokers And these lists contains Name of the contractor Approval date Revaluation date Approved by Imperial Textile Mills Limited 14 Evaluation and approval of subcontractors for Polyester Fiber procurement In Imperial Textile Mills second raw material is Polyester Fiber. This is purchased only from approved subcontractors. Here again the Director approves the subcontractor that supply the fiber. The criteria for selecting a subcontractor is same as mentioned above in Raw Cotton. After the selection of a subcontractor a Master List of “Approved Subcontractors Fiber Provider” is prepared. Procedure to purchase the Raw Cotton Following procedure is followed while purchasing the Raw Cotton Director instructs cotton selectors to draw samples from Approved Subcontractors. Samples are sent to the laboratory of ITM for testing purpose. These test are performed o Staple length values for 2.5% & 50% o Uniformity Ratio o Floating Fibers % o Micronair o Moisture % Sample are recorded on the “Cotton Arrival Report” Director instructs the brokers to purchase the cotton. Director prepares, reviews and approves the “Cotton Purchase Slip”. This slip contains data that describe the product ordered like the quality and quantity of Raw Cotton. Approved Brokers with the Cotton Selectors arrange to take delivery of the cotton purchased and dispatch it to the Mills. On receiving the raw cotton, the gate clerk prepares the “Inward Gate Pass for Cotton” Excise Incharge prepares “Cotton Receipt Weight Note” that explains the weights of individual bales and sends a copy to the head office. Sample is taken from this purchase and again tested in the laboratory. After all this, the Cotton is stored in Mills Godown. If the raw cotton is rejected (not meeting the requirements), the General Manager notifies to the Director about the rejection. And if the performance of any broker in continuously not satisfactory, the Director can disqualify and exclude his name from the approved Broker/Ginner list. Imperial Textile Mills Limited 15 Procedure to purchase the Polyester Following procedure is followed while purchasing the Polyester When required, the Director arranges to purchase polyester from approved subcontractors. Director communicates the demand to the fiber manufacturing company. Fiber Manufacturing Company send polyester to the mills On receiving the fiber, the Gate Clerk prepares the “Inward Gate Pass for M.M Fiber” Excise Incharge prepares “Polyester Receipt Confirmation Report” and sends a copy to the Head Office. After the arrival of Polyester Fiber at Mills, the Lab A.S.M performs the visual inspection and verifies the fiber bales against the standards. These visual inspections are made o Denier o Staple Length o Color If results are satisfying, then it is stored in Mills Godown. If non-conformity is found then a “Non-Conforming Report” is prepared by the Lab A.S.M and he notifies this to the General Manager and GM notifies this to the Director so that corrective actions are made. Spare Parts and General Items Other then raw materials, the purchase department also purchase the Spare parts and general items Transportation services Repair services Packing and loading services Imperial Textile Mills Limited 16 People involved Following people are involved in the purchase of Spare Parts and General Items General Manager: He reviews and approves the purchase indent, adequacy, correctness and product satisfaction. He also reviews the subcontractors of all calibration and repair for inspection, measuring and test equipment. Purchase Officer: He is responsible to evaluation of items bought and he actually purchases the items from approved subcontractors along with his purchase team. Director: He approves the subcontractor for spare parts and general items. He also approves the goods transporters. Admin Manager: He is responsible to evaluate the goods transporters. All the items are purchased from the approved subcontractors and these contractors are evaluated on the basis of ISO 9000 QMS/ISO 14000 EMS, Capabilities of meeting the product/service quality requirements, Timely deliveries, Cost competitiveness. This evaluation is done made again after one year. After the evaluation of subcontractors certain Master Lists are prepared that contains Subcontractor’s Name Approval Date Revaluation Date Approved By These master lists are prepared and managed in the different locations Master List Name Managed By Managed In Master List of Approved Subcontractors Spare Parts and General Items Purchase Officer Head Office Master List of Approved Subcontractors Calibration/Repair, Packaging and Loading General Manager GM Office Master List of Approved Subcontractors Goods, Transporters Admin Manager Admin Office MLOA Subcontractors Spare Parts and General items Purchaser Main Store Imperial Textile Mills Limited 17 Procedure to purchase the Generals Items A “Demand Book” is reviewed and approved by GM for its adequacy and correctness with respect to maintenance schedule. Store Incharge prepares proper “Purchase Indent” in duplicate reviewed and approved by the GM for its adequacy and dispatches first copy to the Head Office. After receiving the Purchase Indent the purchase officer circulates the inquiry among approved subcontractors. If the item is new, Store Incharge adds a new code in the “Coding Control Register” The quotations received from approved subcontractors are attached with Purchase Indent. Purchase Officer sends this to Director and gets approval. Purchase Officer prepares the “Purchase Order” and sends for approval. Order is placed after approval. Purchase Officer verifies the products provided by the subcontractor. Purchase Officer collects the items from subcontractor. Purchase Officer dispatches the items to Mills. Imports After establishing the need of any spare part the Director communicates with the approved subcontractors for calling quotations and other information. Director reviews and approves and then L/C is made for that purchase process. After the verification of these documents by Director the procedure is completed. Cash Purchase Purchase officer carries out the cash purchase at Head Office and brings the commercial invoice of subcontractor. Mills purchaser carries out cash purchase and brings the commercial invoice from subcontractor. Store Incharge prepares “GRIR” (Goods Receipt and Inspection Report) that is reviewed and approved by General Manager. Imperial Textile Mills Limited 18 Budgeted Purchase This sort of purchase is carried out in order to maintain desired level of certain items. It includes packing material and ring travelers that are directly purchased from Head Office after analyzing their stock reports. Purchase Officer prepares the “Purchase Order” that is reviewed and approved by Director for this purpose. Procedure to purchase the Calibration/Repair Services The mill gets the services of approved subcontractors for the calibration and repair of inspection, measuring and testing equipment in the same way mentioned above. Procedure to purchase the Packing and Loading Services The mill gets the services of approved subcontractors for the packing and loading services of the finished goods in the same way mentioned above. Procedure to purchase the Transportation Services The mill gets the services of approved subcontractors for the dispatch of yarn. After successful evaluation the Director gives the approval. Bilty is issued by the transporter as a proof of taking over the yarn is kept over the Truck/Container’s driver and second copy retained by Excise Incharge. The Admin Manager reviews bilty to ensure correctness of contents. Disputes All non-confirming materials are reported to subcontractors as soon as possible along with the information on type on non-conformity found in the materials. Purchasing authority negotiates with the subcontractors and asked by subcontractor for corrective action proposal or the materials are returned to the subcontractor as appropriate. Verification of the Purchased Product The mill verifies the purchased product at mill and then the record of these activities are kept and saved. Imperial Textile Mills Limited 19 Production Department Imperial Textile Mills Limited 20 Production Department This department is usually the heart of every organization that is involved in any sort of production. Here the raw material is converted into the finished goods. The work done by Purchase Department can go in vain if production is not done carefully. So special care is more needed here because what is produced here actually goes in the hands of the final consumers. The Production Process The production process involves certain stages and certain people to convert the raw material into finished goods. Each stage is defined below. People Involved All departments’ heads are responsible to identify the product in the production process through proper identification. Raw Material Godown The process starts with the identification of raw material available in the Godown. Raw Material is identified by its Name and by Origin. (With identical lot numbers). (1 lot = 100 Bales) If Material is imported then it is identified by Invoice Number and L/C Number. Before receiving the inspection, the Material is identified as “Not Ready For Use”. If Material has passed the inspection then it is identified as “Ready For Use”. If not passed, then it is identified as “Non-Conformity Product”. When the Raw Material is usable, it is sent to the production area and feeded to the Blow Room for the process to get started. Mixing area and Blow Room The main purpose of the Blow Room is to clean and purify the cotton. This is the first step in processing the Cotton. Here Raw Cotton is the input, while the Lap is the output of this room. Bale Breakers are installed here. The Bale Breaker have the beaters in them Imperial Textile Mills Limited 21 These beaters move the cotton into different ways and open it by splitting the cotton with the help of spikes installed on the edges. They break the cotton in a loose form. Then this cotton is passed through a lighted path so that all the impurities like stones could be detected and removed. Some terminologies must be discussed here o Scutchers: The machine where main output “Lap” is shaped. o Distributors: The pipes through which the cotton is sent to Scutchers. o Hopper Feeders: Used to regulate the flow of cotton in Scutchers. Ensure the constant and uniform supply of cotton. o Krischner Bearer: These are the beaters installed in Scutchers. They perform the opening and cleaning of raw cotton. Carding The lap, which is the output of Blow Room is the input of this Carding Room. Here the output is Card Silver. Here laps are opened, cleaned, drafted and short fiber is extracted. The production manager checks the cotton and it comes in the drums type containers. The “lap” is rotated on the Lap Rod These Lap Rods are placed into the machines that perform different function on these. After this, the Lap is converted into Silver. Drawing The main function of this room includes Doubling Doubling the length of cotton fiber. Drafting The length of fiber is increased 50%. Parallelization Fiber of silver ropes is made parallel to each other. Straightening Fiber are made straight here. Simplex After attaining cotton from drawing and carding processes then it is further passed back to blow room process called Roving and then cotton is sent to next step. Here input is Finisher- Combed Silver and output is Roving Imperial Textile Mills Limited 22 Here Roving machines are installed. The main functions are Twisting and Drafting. In twisting the machine twists the thread to make it cohesive. Ring Here again the main function is drafting and twisting. In this step small pones are developed for further process and wastes are made out. Autocone Here the yarn that is being formed by the ring section is wrapped on cones. Different types of thread are wrapped on different colors cones. Here if the thread breaks, it is automatically rejoined and the waste is removed. Here also some wastes are extract called; Oily hard waste and hard waste. Packing Cones manufactured in proceeding step are now kept in moisturize room for absorbing required moisture. Cones are packed into bags or cartoon according to customer requirements. The detail is mentioned on the cartoons that is Count Brand Gross Weight Net Weight Imperial Textile Mills Limited 23 HR Department Imperial Textile Mills Limited 24 Human Resource Department Personnel Management or Human Resource Management could be the key activity for any organization. No matter machinery and structure is also important, but at the end there are people who are going to run and work with those machineries. Employees can lead an organization to success or failure. It all depends on how they are managed and how efficiently and properly they are used. Imperial Textile Mills also have a particular way to manage the employees. The main objective of the department is to manage Recruitment and Selection Orientation Training Job Placement Salary Rewards and Bonuses Providing Other Facilities Attendance and Leaves Recruitment and Selection Recruitments are usually made when an organization starts working and it is done to fill the total number of people required to work in an organization. In ITM, huge recruitments were made at the time of starting the business and then later on recruitments are made when any position is vacant or there is a need to hire more employees according to the need of work to be done. The recruitment of employees of different levels is done by different people in ITM. For example Selection of lower level personnel of the production unit is done by the Administrator. The Hiring, Training and Lay off of the labor and their supervisors are done by the Administrator. Technical staff and management are hired by the GM with the consent of HR department of the head office. Imperial Textile Mills Limited 25 Recruitment Criteria The complete recruitment criteria is given below Sr. No Department Designation No. of Employees Criteria 1 Chief Executive 1 ------ 2 Director 1 ------ 3 General Manager 1 Graduation in Textile+5 Year Experience 4 Technical Manager 1 Graduation in Textile+ 2 Year Experience 5 Admin Manager 1 Intermediate+ 5 Year Experience 6 Accounts Manager 1 ACMA, CA + 2 Year Experience 7 Account Assistant 1 B.Com+ 2 Year Experience 8 Purchase Officer 1 Matric+ 5 Year Experience 9 Cotton Selector 1 Matric + 2 Year Experience 10 Excise Excise Incharge 1 Intermediate + 5 Year Experience 11 “ Cotton Clerk 1 Matric + 2 Year Experience 12 Gate Clerk 1 Matric 13 Store Keeper 1 Intermediate + 1 Year Experience 14 Store Clerk 1 Matric + 1 Year Experience 15 Purchaser (Mills) 1 Matric + 2 Year Experience 16 Lab Lab A.S.M 1 Intermediate + 2 Year Experience 17 “ Uster Operator 1 Matric + 1 Year Experience 18 “ Testing Clerk 1 Matric + 1 Year Experience 19 “ Wrapping Boy-1 2 Matric 20 Wrapping Boy-2 3 Matric 21 “ Cone Checker 3 Matric 22 “ Packing Clerk 1 Matric 23 “ Mixing Clerk 1 Matric 24 Labor Labor Officer 1 Intermediate + 3 Year Experience Imperial Textile Mills Limited 26 Sr. No Department Designation No. of Employees Criteria 25 “ Record Clerk 1 Matric + 2 Year Experience 26 “ Time Keeper 1 Matric 27 Roller Cover Shop Fitter 1 Literate + 1 Year 28 “ Helper 2 Literate 29 “ Foreman 1 Literate + 5 Years 30 Head Electrician 1 Literate + 3 Years 31 “ Senior Electrician 1 Literate + 2 Years 32 “ Electrician 4 Literate + 1 Year 33 “ Helper 3 Literate 34 Air Condition Foreman 1 Literate + 5 Years 35 “ Head Fitter 1 Literate + 1 Year 36 “ Assistant Fitter 1 Literate + 1 Year 37 “ Operator 4 Literate + 1 Year 38 “ Helper 1 Literate 39 Workshop Foreman 1 Literate + 5 Years 40 “ Turner 1 Literate + 1 Year 41 “ Fitter 1 Literate + 1 Year 42 “ Plumber 1 Literate + 1 Year 43 ” Welder 1 Literate + 1 Year 44 “ Helper 2 Literate 45 Blow Room Foreman 1 Literate + 5 Years 46 “ Fitter 2 Literate + 1 Year 47 “ Assistant Fitter 1 Literate + 1 Year 48 “ Helper 2 Literate 49 “ Head Jobber (Back Process) 1 Literate + 3 Years 50 “ Jobber (Blow Room, Card) 3 Literate + 2 Years 51 “ Picker Tenter 3 Literate + 1 Year 52 “ Doffer 9 Literate 53 Card Foreman 1 Literate + 5 Years 54 “ Head Fitter 1 Literate + 2 Years 55 “ Fitter 1 Literate + 1 Year 56 “ Grinder Fitter 1 Literate + 1 Year 57 “ Assistant Fitter 2 Literate + 1 Year 58 “ Helper 2 Literate 59 “ Card Tenter 15 Literate + 1 Year 60 “ Doffer 15 Literate 61 Drawing, Simplex Foreman 1 Literate + 5 Years 62 “ Head Fitter 1 Literate + 2 Years 63 “ Fitter 1 Literate + 1 Year 64 “ Assistant Fitter 1 Literate + 1 Year 65 “ Helper 3 Literate 66 “ Jobber 3 Literate + 3 Years Imperial Textile Mills Limited 27 Sr. No Department Designation No. of Employees Criteria 67 “ DDT 9 Literate + 1 Year 68 “ DST 12 Literate + 1 Year 69 “ Doffer 21 Literate 70 Ring Foreman 1 Literate + 5 Years 71 “ Head Fitter 1 Literate + 2 Years 72 “ Fitter 4 Literate + 1 Year 73 “ Assistant Fitter 2 Literate + 1 Year 74 “ Helper 10 Literate 75 “ Head Jobber 1 Literate + 3 Years 76 “ Shift Jobber 3 Literate + 2 Years 77 “ Jobber 6 Literate + 1 Year 78 “ 4 Sider 96 Literate + 1 Year 79 “ Doffer 48 Literate 80 Auto Cone Foreman 1 Literate + 5 Years 81 “ Head Fitter 1 Literate + 2 Years 82 “ Fitter 2 Literate + 1 Year 83 Senior Fitter 1 Literate + 1 Year 84 “ Assistant Fitter 3 Literate + 1 Year 85 “ Helper 1 Literate 86 “ Jobber 3 Literate + 3 Years 87 “ Winder 6 Literate + 1 Year 88 “ Operator 51 Literate + 1 Year 89 “ Doffer 24 Literate Selection Process When the vacancies are created, the applications are invited through Press or personal contacts. The applications are vetted and merit list is prepared depending on the education. The candidates are tested as per their trade/category. The documents are forwarded to the Head of Department/Factory Manager. They interview the candidates and write their suitability report. The documents are put up before General Manager who gets formal approval from Director to decide about their Pays & Allowances. Imperial Textile Mills Limited 28 Orientation Orientation becomes the necessary part after the selection is made for any kind of worker and the manager. The concerned Officer or Manager is made responsible for conducting the Orientation in which usually the place of work and tasks to be performed are introduced. It is also told to whom they should report or who is concerned with their work. Training Every time the training becomes necessary when a new innovation or new concepts are introduced in Imperial Textile Mills. The objective of such training is to keep all the personnel up to the date and make them trained enough that they can produce what is demanded from them. Such employees that are well known about the all operations and also work according to the updated environment try to make such products that satisfy the customers’ needs. Chief Executive is responsible for the training of the employees and keeps an eye on the new trends that when there is a need of training for the employees. Chief Executive orders for the training program and in this way employee are trained to enhance their abilities. Training Procedure The nature of the company is that most of the technical work is done through skilled labor and that skilled labor is mostly trained when any new technology or new thing comes into existence. The training procedure is as follows. Identification of Training Needs and Resources The management has provided adequate resources to implement the training program. There is a “Directory of Training” in which all the training topics are defined. Every year it is being reviewed and updated. CEO reviews that directory after six months in-order to evaluate the skills and weak areas of the employees. Departmental Heads are responsible to give training to their workers. ISO Coordinator prepares and MR (Management Representative) approves the training schedule. ISO Coordinator sends the “Training Session” form to the labor office, where Labor Officer maintains the individual training record. Imperial Textile Mills Limited 29 MR is responsible to revise the training needs of the employees once in a year in order to evaluate past performance of employees and provide training according to the skills of the employees and workers. Regular Training Regular training to all new recruitment of Head Office and Mills is provided to them. As it is not pre-planned, it is not mentioned in the “Training Schedule”. Refresher Training Refresher training is provided to the existing employees of Head Office and Mills according to “Directory of Training Needs”. Auditors Training Director hires the consultants to provide the audit training to the internal quality auditors of the company. Auditors receive the training for ISO 9000 from an expert of ISO 9000 auditing; any recognized quality institution or the auditors previously conducting internal quality audits. Salary Two types of employees are working in ITM Daily Workers Regular Staff Daily Workers The workers, who are employed on daily wages, get their payment on the piece rate system. The costing department works out the detail of the payment in such a manner that every worker should get more than the laid down in labor laws. Regular Staff The wages/pay is fixed at the time of appointment Depending on the performance, annual increments are given. Imperial Textile Mills Limited 30 The detail is given below. Unskilled Labor: R.s 7000 Skilled Labor: R.s 7200 Supervisor: R.s 12000- 15000 Jobber: R.s 10,000 Foreman: R.s 25,000 Tech Staff: R.s 8400- 11000 Allowances These allowances are usually given to employees at ITM. They vary according to the position of an employee. Old Age Benefits Life Insurance Pensions Retirement benefits Health insurance Fuel/automobile Attendance and Leaves Attendance Policy An "Attendance Card" is given to every worker and he brings it in the Mills in the morning when he comes to work. From that card the attendance is shifted to a register for the purpose of making "Daily Attendance Report for a Shift". This report contains information as; No. of workers that should be on work. No. of workers actually on work. No. of workers present. No. of workers absent. No. of workers that have come on time. No. of workers that have come late. Imperial Textile Mills Limited 31 Leave Policy The leave policy is as under Un-confirmed Workers Are not entitled any leave. They can avail leave without pay for the specific period. Confirmed Workers/Staff. They are entitled Casual Leave 10 Days Annual Leave (Executive) 15 Days Annual Leave (Non-Executive) 14 Days Imperial Textile Mills Limited 32 Services department The main objective of the department is to provide support services to whole the unit and production process. The following chart explains the support services provided by this department Air Conditioning Services department control the temperature at the production unit to facilitate the production process. This helps the mill to keep the machines cooled down. So the machines don’t get warmed up and don’t create any sort of problem form the workers and the management. Electricity Control Services department also control the amount of voltage to be supplied to the whole mill and the machinery installed in the production unit. So they are responsible of how much electricity is needed at a specific room and then they provide it the required energy. Power House This department is also responsible for producing some energy that could be used as a backup in case of power failure. This helps the mills to finish all the tasks and orders on time. Workshop In workshop, the maintenance and repairing of damaged parts of machinery is done. This also comes under the services department. Services Department Electricity Control Air Conditioning Power House Work Shop Imperial Textile Mills Limited 33 SWOT Analysis SWOT analysis could be the most valuable tool to identify the status and position of an organization in a specific environmental mechanism. It could help to determine that how an organization will respond and behave and what will be its strategies if it faces these internal and external environmental stimuli. So as a conclusion, this analysis best captures the picture of the organization within a given context. To determine this picture of Imperial Textile Mills, I have done the following SWOT analysis, based on my observation during my internship program and on the comments and views of the organization's one of top manager, Mr. Idrees Strengths 1. ISO Certified Imperial Textile Mill is ISO 9002 certified, means that it meets the international standards of quality, which is helping the Mill to create a positive value in the mind of customers. 2. APTMA member As being the member of All Pakistan Textile Mills Association, ITM possesses some powers that are also owned by the other members of APTMA. This enables ITM to fight and get their voice heard against any policy that is made by the government against any textile mill and that can create problems in the daily routine of work. 3. Motivated workforce As they are following the international standards of production, employee satisfaction and workplace, they are providing a better pay along with occasional bonuses and other facilities like insurance and pension plans and also providing a safe workplace environment to their employees that is creating a sense of satisfaction among the employees and it keeps them motivated to work hard. 4. Latest machinery They are using latest machinery for the production work, which helps them to complete the orders in time and increasing the productivity of the employees Imperial Textile Mills Limited 34 5. Own power generation plant ITM have own power generation plant which is helping ITM to complete the orders in time by minimizing the time loss of production. And it is also helping to cope with the current energy problems faced by our country. 6. Cheap labor Due to its geographic location, cheap labor is available to Imperial Textile Mills that is helpful in reducing the cost. Weaknesses 1. Manual work Apart from using the latest machinery for the production purpose, most of the official work of keeping the records of items, sales, employees and other things is still done with the help of traditional pen and paper method, and the use of computer for the same purpose of record keeping is less. 2. Centralized decision making The decisions are made by the top management which is weakness of the ITM because they have no proper idea about the situation and their decision can be not fruitful for the company. 3. No promotional activities Imperial Textile Mills is not involved in any promotional activities. So involvement in the promotional activities is needed. 4. No value added products Imperial Textile Mills is not exporting any value added products. That is why profits are not as much as they should be. 5. Poor organization culture The organization culture is not as strong as it should be. Means that culture practices are not visible enough for a person who is new to the company, and it will take time to learn all the practices and culture that is followed in ITM. Imperial Textile Mills Limited 35 Opportunities 1. Computerized record keeping They can adopt the computers for the record keeping purpose. Keeping the digital databases will help them to easily generate needed reports with only a little effort, they can save the data as they wanted to, and can gain other advantages of storing data in a digital manner. 2. New and qualified staff ITM can hire young, better, energetic and more qualified staff that can work with the latest machinery and can help in creating and managing MIS system for ITM. 3. Proper utilization of resources If the cost of different matters which is not utilizing properly is controlled by ITM’s management they can produce more in a few costs. It has to develop a further systematic process for controlling and managing resources. 4. New products for existing markets If Imperial Textile Mills expand its product line then it can offer more and better products to its current customers, which in return will increase the customer loyalty. 5. New markets Imperial Textile Mills has opportunity to explore new international and growth oriented markets and offer its current products to these new markets by exporting its products to countries like United States, UAE, Saudi Arabia. 6. Start promoting the product Imperial Textile Mills can still start to promote its products. The promotion may lead Imperial Textile Mills to a tremendous increase in the sales of its products. Imperial Textile Mills Limited 36 Threats 1. Power shortage problem As our country is facing difficulties due to electricity and power shortage, it is creating problems for ITM as well. This power shortage is causing problems in the working hours which might reduce the productivity of employees and the mill itself. In order to cope with these problems ITM is looking forward to their own energy resources to keep the pace of production at a stable acceptable level. 2. Increasing cost of production Cost of production is not merely based on the cost of energy; which is increasing day by day; it also includes other costs like cost of labor in shape of their wages and incentives. So in future if a new law of minimum wage or some other law like this is passed, then this will certainly challenge ITM to stay in budget. 3. Increasing number of local competitors As more and more players are entering in this field, the competition is increasing which in a result is decreasing the profit of every textile mill. So for the survival purpose ITM have to introduce new and more quality products to its customers so that they won’t switch to other mills. 4. International competition Today more fierce competition is generated by large and emerging new international competitors that include China, Thailand and Indonesia. 5. Change in buyers demand As the competition increases, there are more chances that the buyer will switch to other suppliers products that is providing a slightly better thing. Or he will demand more and better products from the existing supplier. So in this case ITM have to work hard to keep its current customers in its hands, so that they won’t switch to other suppliers. 6. Government policies and interference Policies imposed by governments could also be like a constant threat to ITM and other textile mills. For example previously government introduced a rule for textile mills to pay 40% of their Imperial Textile Mills Limited 37 profit as dividend. Now that brings difficulties for the mills with low budget. So in the future if same or other type of rule is introduced again, then this will cause problems for all textile mills including ITM as well. 7. Unreliable agricultural sector No matter our country is an agricultural country, but still the agricultural sector is unreliable due to weather, irrigation system and the economic condition of the farmers. So less production of cotton may result in an increase in the prices of the cotton which as a result may increase the cost of the final product. 8. Global Economic Instability In the last few years the world have witnessed a worst economic crunch that have caused the countries to think beyond the current possibilities and friendships and choose something that is both economically and socially beneficial for their country. So in this regard the countries are trying to produce the things they can, showing less dependability on external providers of these things. And if they are not able to produce themselves then they look for places that provide them these things at a low cost. As Pakistani products are sometimes priced higher than other countries, so the buying country chooses what is beneficial for him. If the situation remains the same then it can create problem for Pakistani producers and exporters. Imperial Textile Mills Limited 38 PEST Analysis PEST analysis uses certain factors that determine how external forces are affecting the working condition of any organization. These factors includes, a) Political b) Economical c) Social d) Technological Political As we already know that the political condition of Pakistan is not very stable. The government doesn’t have eligible people to work and to make proper policies regarding the economic situation of Pakistan. Most of the policies made by the government are usually of no benefit to the textile industry. Clash between the federal government and the provincial government is affecting that trade policies. Using energy production issue to blame each other is not solving any of the power shortage problems. So as a result the textile industries have to rely on its own resources to complete the production which is causing a huge increase in the cost of final product. Also the law of minimum wage is adding to the problem. The rules regarding taxes and tax collection also have an impact on the textile sector. Export and import policy and quota policy also plays a vital role in the development of the future of any textile mill. Custom rules and regulations regarding exporting the products and importing the machinery could also add to the problem if not created and revised in proper manner. Government should apply sustainable policies for the benefit of the exporters as well as the investors. Imperial Textile Mills Limited 39 Economical Growth rate of a country could also be important for the textile sector. Both national and international economic conditions are not suitable for the textile industry of Pakistan. The demand for our products is decreasing gradually as more countries are now participating in the production of same products. Similarly the decreasing value of Pakistani rupee is also adding to the problems. The economic condition of Pakistan can also affect the foreign investors. Increasing rate of inflation is increasing the cost of production, which as a result decrease the profit margin of the investors. Increasing fuel prices is one of the causes of this situation. Social The change in the lifestyle of the people could also affect the growing demand of the ITM products. The change in the lifestyle and needs in different demographics also affect the demand of the customers. The workforce attitude toward the job is positive and the reason behind this is the lack of availability of suitable jobs in the job markets. People find this sector “Good Enough” until they find another job. Technological 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. ITM Excellent computerized machines and devices are installed in the ITM has made extension in its present setup by installation of well advanced technology imported from foreign countries. And at the same time the new technological developments such as e-commerce, e-banking and information technology are improving the overall efficiency and productivity of this sector. Imperial Textile Mills Limited 40 Similarities and Differences During internship I have found some things that are also found in books and some other things which are not found in books. For example Similarities Some things that I found similar Most of the HR practices like recruitment, selection, leaves policies are same as mentioned in the books. ISO policies and rules are not only implemented but are also strictly followed. Selection of raw material is important because it affects the final product. Computerized record keeping reduces the cost and increases the efficiency. Having your own raw material increase the efficiency. Decentralization is not that much accepted in Pakistan. In case of economic instability, people will still work even with low pay. Innovation increases your efficiency. More quality is better than more quantity. Differences Some things that I found different Organization culture is not that much visible as mentioned in the books. Not having a proper HR department doesn’t means that the organization cannot properly manage the Human Resource. You can survive even without promoting your product. Imperial Textile Mills Limited 41 Recommendations The office staff should maintain decorum in the office and should not talk in loud voice and also irrelevant discussion during work should also be abolished. ITML should try to end one man show that is prevailing in the company of centralization because it is not in the benefit of the company. Employees should be trained on a proper way and in this way their abilities should also be enhanced. Management Information System should also be introduced in the company in order to keep the necessary documents safe and up to date. HR department of the company should also be improved and properly made because in this way it can perform better. Training of the employees should be done regularly so that the confidence should be gained by them. Working hours of the company should not be more than the capacity of the employees so that they can perform their task better. If the working hours of the employees have been increased then they should be paid more for that extra work. The mill can provide transport services to their female staff or to the people who come from a long distance. The mill should produce value added products and should stat promoting them. Imperial Textile Mills Limited 42 Work Done During Internship During the period of internship I learned from the departments that were managing all the work there like HR Department, Production Department and Purchase Department. Purchase Department Here I came to know that purchase department is there to maintain the stock of raw material and other stuff at a desirable level, so that the mill could work at the level where it should be working, otherwise if enough resources are not available, then the mill could have stopped the working. Apart from purchasing the raw material and keeping an acceptable level of inventory in stock, checking the raw material, their quality, quantity, rates, suppliers and on time delivery of these purchased material was also the concern of the Purchase Department. In this department I have prepared some reports like “Cotton Arrival Report” and others in which it was mentioned that cotton is received as a sample and after that the cotton will be taken in the lab to assure the quality of that cotton. Same report was made at the arrival of polyester also that it has been arrived as a sample for testing. During the inspection process I was also there where a report was made to check the quality of the cotton and I prepared the report with the help of Lab A.S.M that whether the quality of the cotton is good enough to purchase it or not. Production Department I have already mentioned above that the Production department is the most important department of the company. In this department raw material is converted into finished goods. The process starts with raw cotton and ends with the packed yarn that is produced in this department. In this department they have assigned me some tasks like to prepare a document of the raw material before its inspection as “Not Ready for Use” and after Inspection as “Ready for Use” and in case of non-conformity as “Non-Conformity Product”. The basic purpose of these reports was to make sure that only the acceptable and tested cotton is installed or used in the production process, otherwise the cotton with any defects could bring problems to the machines or the final product itself. Other than that the task was also to ensure that required number of people are operating and working efficiently to produce the output. Imperial Textile Mills Limited 43 HR Department HR management is being done in the mills though there is not a proper HR Department but still they are working as HR department. In that department I was assigned some tasks like to work with the attendance register and to manage a detail of the employees taking overtime. The reason behind this was to ensure that the employees working overtime are paid properly. I also saw that how people are recruited and selected. In that department I also noted about the salary and bonuses criteria and also the pension method by the company. Learning as Internee The purpose of the internship was to gain practical experience of the real world. And I hope that I have accomplished that objective. I have learnt that quality is the thing that matters the most. Quality in the products always satisfies your customers. During production, problems could be added to the product at any level. In order to solve the problems you must make sure that you are not leaving any loopholes behind. In order to get to the root of the problem try to inspect the process of production on every level. Purchasing the right thing will lead you to selling the right thing. So this must also be taken into consideration. Any defective purchase could be returned but it cannot bring back the time that is lost during this process. So selection of a credible supplier also becomes important when the matter is of timely delivery and production of products. Human Resource no matter skilled or unskilled have own vital importance and no one can deny it. They can show some miracles and can cause disaster for an organization. We refer an organization as an individual but in the end there are employees who run the whole organization.