Organizational Setup

The Chairman of Gulshan Textile Mill is Mian Abdul Shakoor. Managing Director is Mian Naseer Ahmad. The Technical Director is Chaudhry Shakoor and General Manager Chaudhry Nisar Ahmad.

Location

Gulshan Textile Mill is located 80 kms away from the Multan city. This decision was made due to following basic reasons:

Facility Design & Layout

Facility design and physical layout of plant, supporting facilities and buildings is provided by top management. Their physical layout provides maximum utilization of available space by optimizing costs.

Gulistan Textile Mill

Workers Colony

Staff Colony

Main Road

Gate

Godown

Auto

Plucker

Workshop

Canteen

Lab

GM

Office

Store

Room

Auto

Coner

Roving Ring

Drawing

Carding

Blow Room

Entry

Godown

Pipe

Support Facilities

Support facilities are carried out in such a way that the direct operations can function smoothly. Support facilities are essential for operations. These are:

Forecasting

Forecasting methods in GTM revolves around the concept of supply and demand. The methods used for forecasting are:

The panels of experts sit together and discuss the situation and conditions controlling the demand of thread. The market trend is followed. Similarly, the price of cotton has a direct impact on the sales forecast. If there are fluctuations in the basic raw material (cotton), then sales forecast also changes. When the crop is good then due to market mechanism prices remain stable, but when cotton prices are higher due to bad crop season then demand of cotton overall is decreased.

The company forecast the demand for the medium term period, because of demand of yarn my be fluctuated or price has also effect on the forecasting and it is not possible for forecast the demand for shorter and longer time period.

Capacity Planning

The long-range operational strategy of an organization is expressed in terms of capacity planning. In capacity planning, the factors like market trend, technological innovations, process innovation and the optional size of plant are important.

Measure of Capacity of GTM

The capacity of any spinning unit can be measured by number of spindles installed. The production capacity of GTM is 6,000 spindles. 240 bags are made daily. Each bag is of 100 pounds. When the thread is of more count, say 30 or 40, the production capacity reduces because it is more time consuming and vice versa.

Capacity Plans at GTM

Currently the mill is operating at its full capacity, i.e., 24 hours a day. The plan for future is to install a Sui gas power plant to save the lost time due to electricity failures. They are planning to increase the spindles as well.

Production Process

The production process of GTM is divided into two portions:

Refining Section

In this section, cotton bales are put into process for refining purposes. This section is divided into two departments.

It is also known as warm-up period for cotton. The basic purpose of this section is to firstly warm up the cotton bales, and then to remove dust and other waste particles from the cotton. The waste ratio is about 10%, but it depends on the quality of cotton bales. If cotton is of good quality, then wastage is less, and if it is of low quality, then wastage ratio ranges between 15-20%.

The cotton plucking is carried out by both manually as well as with machines. The name of these machines is Auto Plucker. Avg. 12 to 15

Bails are putting in these auto pluckers and avg. weight of per bail is 160 kg.

Avg. 75 bails are running and consume daily, which take a 10-12 hours are for performing this process.

Second thing is the convey testes which means that bails when come from Auto pluckers, again they open and clean it by hands. Jute is plucked from there, which cause cotton hips.

The temperature of blow room is 850 F (Dry) and 700 C (wet).

Stucking

Card room

Plucking

Before the raw stock is converted into yarn, the remaining impurities must be removed, fibers must be disentangled and they must be straightened. Without it, it is impossible to produce fine yarn. All this is done in carding machine. The output of the blow room, which is lap, is called the input of the carding department.

In this section, fly wastes with other wastes are also removed. Percentage of impurities depends on quality of cotton. End product is like rope, which is gathered in cans. Each can is of 20kg. These are called Sliver. This is the output of card department.

Finishing Section

In this section, cotton is converted into yarn. Following departments take part in this activity:

In this section, different cans are put and from this, only one sliver is obtained, or in other words, blending is done in this section. Number of cans is 8. This sliver is then again blended with others in the same manner. This is done to get uniformity in the thread and after it, it is parallel and regular. In this section, drawframe, which is used for drawing has several pairs of rollers. These rollers pull the staple length-wise over each other.

Final product of drawing is placed on roving or simplex frame, where further drafting process and twisting takes place, thereby producing longer and thinner sliver called roving and process is called the drafting.

The main purpose of this department is to strengthen the yarn. In this section, the yarn is twisted to achieve the required fineness.

Cones are prepared in this section or department. Then doubling occurs by twisting two threads. These cones are final products of the spinning unit. These cones are then brought to conditioning plant, which produces moisture in cotton. Special lights are there which check the quality of cotton and yarn and any of them is not according to quality then they withdraw it from lot.

Then these cones are transferred to StoreRoom where they packed. The weight of each cone is 4.175 lbs. (pounds). A carton contains 24 cones, whereas 350 cartons are taken in one container.

Production Flow Chart

Product Planning

The competitors and profitability of an organization depends upon design and quality of products and services it produces and on cost of production. Predicting the nature and impact of innovation places one firm in more competitive position than a firm, which doesn’t anticipate these evens. A product or service designed one way may be costly to products, but it may be somewhat less costly when designed and developed by other ways.

Product Planning at Gulshan Textiles

The product planning in GTM is carried out by top managerial positions or professionals in their Head Office in Lahore. The mill hires specialized professionals to perform this task. The requirements are communicated by mill manager to Head Office. Then according to their command, product is made. They negotiate with the buyers. If the price and order time suits him or not and if figures are hopeful, production is started.

Technical Consideration

The Gulshan Textile Mill has one technical director who is responsible for checking out technical aspects of production. Major breakdowns are rare, except of the fire emergency in blow room back in 2-3 years.

Gulshan Textile Mill’s Other Operations

GTM has completed its 19 years of success. Operations management functions are currently being successfully implemented by management. Besides, following are some other important functions.

Product Strategy

GTM is using the mixed product strategies in their production process. Yarn of different counts is produced in GTM. They divide the yarn into following categories:

Workforce Strategy

GTM has daily wage laborers as well as monthly paid workers. They hiring and firing is common in GTM. When the firm is not earning any profit, then mostly idle labor is fired to reduce cost. For last three years, the firm is facing problems financially because of bad economic conditions of country and cotton decline so labor is fired.

Material Requirement Planning

Safety Stock of GTM

GTM maintains a safety stock of raw material of 10,000 bales for smooth and continuous production. The company has stock of bales to fulfil the requirements and daily spinning capacity.

Reorder Point

The GTM as such has no specific reorder point. The raw materials are purchased on continuous base whenever the need arises. The safety stock level would be the reorder point because the 10,000 bales to be kept. If finances allow then more cotton is stored.

Order Size

No specific formula is used for computing order size. They order period wise in any size order. Generally in season like October November, when cotton is produced the firm buys more and in other periods, the purchase is according to the demand.

Lead Time

The lead-time of GTM is one month.

Inventory Management

In any manufacturing firm, the three basic types of inventories are:

Raw Material Inventory

10,000 bales of cotton have to be kept as inventory at all times. The raw material is purchased during the cotton season by making sales forecast from the past year experience. The raw material that is cotton, is kept in cotton godown attached to the mill where there is strict control on raw material and all possible mishandling and theft are minimized. Company has their own godowns where raw material is stocked. When unit requires a raw material, it is issued to them with the signature of General Manager on the written application of cotton clerk.

Work-in-Process

The spinning mills usually don’t need work-in-process inventory because it is a continuous process, once the raw material is put in process then finished product will be taken out without keeping it in processing. Only the small amount of processed cotton and polyester is kept when it has to be transferred from one department to another, but it is transferred daily so separate mechanism is present for keeping WIP inventory.

Finished Goods Inventory

The finished goods inventory is kept by the mill because the products are produced daily so finished goods are placed in separate rooms attached with finishing department, where it is kept after packaging and withdrawn according to demand. The warehouse of buyer is also used to reduce the cost.

Transportation

The cotton or textile mills all over the country generally use the road transport for delivery of goods. The trollers and tractors are hired for this purpose. When the goods are to be exported then big trollers (NLC) are hired to take goods at port and if thread is to be sent in local market, then usual trucks of relatively cheaper cost are hired. The trucks could be hired at any time and costs are set by agreement previously.

Quality Control

The quality control techniques and tools of GTM are very efficient. There are three basic types of quality control:

Quality Assurance of Raw Materials

Before purchasing the raw material, inspection of different samples coming from different ginning mills is carried out. The results are sent to the Head Office, where decision about purchasing is done. For cotton, following factors are considered:

The moisture level is maintained from 8 –10%, and is checked by moisture meter. If it is more than conditioning, oven dries it. The quality is checked in every step, but in a day 3 times the G.M and other technical staff visit the plant and check the overall performance.

Colorimeter is used to check to color of cotton because when cloth is dyed, color grading becomes the crucial factor. The reading is taken from meter.

Fineness of fiber is measured by this machine. It consists of a compressor and a scale is attached to it. The air passes through the fiber and the reading moves.

It makes use of a computer to check staple length.

It makes use of fiber and checks fiber Presselay strength by using formula after taking reading.

The periodicity is checked through spectrogram.

It checks uniformity of both yarn and sliver. These machines use ultraviolet rays, which pass through the cones. It checks uniformity of thread. How many thick and thin places are present per 1000m.

It is used to check single yarn say 50cm. The elasticity, i.e., elongation and strength is checked by passing it through machine.

It is used to check the fluff of yarn. This test means that how much thread is moved and per 100 km how much faults are present. The cleaning is judged.

The mixing in blow room i.e., polyester and cotton is changed if new product is made. Every time when new mixing is to be used, a small machine is used to check the color difference by weaving cloth. The weight of finished product is checked in autosoughter

The Planning Department previously decided to get ISO-9002 for Gulshan Textiles, but then they switched their attention to Gulistan Textile Mills. But know the company has got the ISO-9002 certificate on 1st January 2000. For this purpose, they have hired Chaudhry Nazir Company to state the duties of every employee in the mill. After that, they plant it for Gulshan Too. ISO-9002 is given to the company is the surety that they are performing their function well and providing their customers the best services.

Preface

The textile industry is backbone of Pakistan. In every country, it has its distinct importance. The foreign exchange is dependent on it. In Pakistan, there are many small and big firms working in this field. Many of them are very successful for the past decade of 90’s. The overall performance of this sector of industry has declined due to numerous factors. Few established firms are able to maintain their existence. One of them is “Gulshan Textiles”, which belongs to Gulistan Group. It is basically a spinning unit and is successfully performing its operations for the last 20 years.

This report highlights various operations of Gulshan Textile Mill in detailed and precise maner.

Although this report has given me a tough time, but “There is never a rainbow without rain.”

I tried my level best to make to this report more comprehensive and precise but place of improvement always remains there.

Acknowledgement

All thanks to Allah, the most Merciful, Beneficent and benevolent. It is all the will of Allah and His sanctified Pen and the gift of God, His wisdom to mankind that allows us to meet and help each other to accomplish our required ends through his created means.

There are some persons, who think that the individuals must not restrict knowledge; let it flow like a river to the ones who have thirst for knowledge.

I am thankful to our honorable teacher Dr. Hayat M. Awan who has given us the opportunity to get practical knowledge about our subject. Through our studies all that he’s been teaching us was very helpful in understanding the operations of the firm.

I also wish to acknowledge all those people who helped a lot in preparing this report and especially to the people of Mill who never hesitated to provide us any kind of information and knowledge regarding this.

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