Bilal Naseer

7/29/2019 Bilal Naseer

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KOHINOOR TEXTILEMILLS, Ltd.

Submitted By:

Bilal Naseer, Saddam Rafay

Salahudin Sultan, Majid ImtiazSubmitted To:

Madam Rabia Shareef

MBA-3(A)


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INTRODUCTION:

Kohinoor textile Mills Ltd is part of Kohinoor Maple Leaf Group, which was born from

the trifurcation of the Saigol group of companies and is a reputable and leading

manufacturer of textiles and cement. KMLG comprises of Kohinoor Textile Mills limited

(KTML) and Maple Leaf Cement factory limited (MLCF). Both companies are

incorporated in Pakistan and are listed on three stock exchanges of the country.

KTML was established in 1953 at Rawalpindi and is one of the oldest companies of

Pakistan with over 50 years experience in textile manufacturing. It was initially set up

as a spinning and weaving project with 25,000 spindles and 600 looms. However, after

decades of aggressive expansion and modernization KTML has emerged into a fully

vertically integrated home textiles company with state of the art capabilities for

spinning, weaving, dyeing, printing and stitching. The company has a diverse customer

base with sales in both the local and export markets. The main international markets

include Asia, Europe, USA and Australia.


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VISION STATEMENT:

The Kohinoor Textile Mills Limited stated vision, Is to achieve

And then remain as the most progressive and profitable company in

Pakistan in terms of industry standards and stakeholder interest.

MISSION STATEMENT:

The company shall achieve its mission

through a continuous process of having

sourced, developed, implemented and

managed the best leading edge

technology, industry best practice,

human resource and innovative

products and services and sold these to its customers, suppliers and stakeholders.

ORGANIZATIONAL STRUCTURE OF KTML


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OBJECTIVES OF THE COMPANY:

1. To carry on the business of , cotton spinners, and doublers, linen and cloth

manufacturers, jute, flax, hemp, cotton and wool merchants, dyers and manufacturers

of bleaching and dyeing materials in Pakistan and all over the world.

2. Throughout Pakistan and throughout the world, to purchase, weave and otherwise

manufacture, buy and sell and deal in all kinds of cloth and other goods and fabrics,

whether textile netted or looped..

3. To carry on the business of drapers, furnishers and dealers in waterproof materials

and fabrics, silk weavers, cotton spinners, cotton ginners, cloth manufacturers, furriers,

haberdashers, hosiers, Pauline, American cloth, floor cloth and all kinds of imitation

leathers and rubbers.

4. To carry on all or any of the businesses of silk mercers, s manufacturers, importers

and wholesale and retail dealers of and in textile fabrics of all kinds.

5. To carry on the business of mechanical engineers and manufacturers of machinery

and implements of all kinds .

6. To lease, let out on hire, mortgage, sell or otherwise dispose of the whole of any part

of the undertaking of the Company, - or any lands, business, property rights or interest

therein.

CURRENT CAPACITY:

Kohinoor Textiles comprises of two spinning divisions located at Rawalpindi (KTML)

and Gujjar Khan (KGM). There are a total of nine units with 151,000 spindles capable

of spinning a complete range of coarse and fine count yarn from natural and manmade

fibers. In particular, Kohinoor specializes in fine count yarn for high thread count home

textile products. The total production of yarn is 28,800,000 Lbs per annum. Five units

with 85,500 spindles are at Rawalpindi and four units with 65,500 spindles are at KGM.

The dyeing and printing capacity is 48 million meters per annum and the capacity for

pre-treatment and bleaching is 6 million meters. The maximum width capacity for

bleaching is 3.4 meters and for dyeing and printing is 3.2 meters.


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SPINNING:

Kohinoor Textiles comprises of two spinning divisions located at Rawalpindi (KTML)

and Gujjar Khan (KGM). There are a total of nine units with 151,000 spindles capable

of spinning a complete range of coarse and fine count yarn from natural and man

madefibers. In particular, Kohinoor specializes in fine count yarn for high thread count

home textile products. The total production of yarn is 28,800,000 Lbs. per annum. Five

units with 85,500 spindles are at Rawalpindi and four units with 65,500 spindles are at

KGM. Both divisions are modern facilities with state of the art machinery from Europe

and Japan.Kohinoor manufactures a range of coarse and fine count yarn.

COTTON YARN:

Cotton yarn is produced from premium quality Pakistani, Extra Long/ Medium StapleCIS, US Pima and Egyptian cotton. The fine combed yarn manufactured from the finest

cotton is generally used for all high-end home products.

BLENDED YARN:

Blended yarn is produced with polyester fibre. The fine poly-cotton yarn is blended with

ELS cotton and is generally used for products such as bed linen etc.

SPECIAL FIBRE YARN:

Kohinoor has developed innovative products using CVC blended with Bright and

Lyocellfibres. In order to keep up with new trends and developments, Kohinoor places

the utmost importance on product development. Several products currently under

development include.

Coarse count yarn with Pakistani, FaiberMax, Australian, PIMA, and GIZA

cottons for knitting and weaving

Knitting yarns for shirts with Fabire Max, Memphis, Brazilian and

Australian Cotton


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WEAVING:

KRM produces a wide range of griege fabric for home textile products with a maximum

width of 128 inches and styles that range from 100 to 1000 thread count. In particular,Kohinoor specializes in high thread count fabrics with an average yarn count of NE

40/1-NE140/1. Manufactured from combed 100% cotton and poly cotton, some designs

include Percales, Satins, Striped Satins, Poplins, Twills and Herringbones etc.

Kohinoor can also produce fabric with special blends of yarn that can be sourced

according to customer requirements. Some of these are Lycra, Nylon, Polyester

filament/fiber, Tencel, Linen, Bamboo, Coolmax, Modal, Lyocell, Viscose, Wool,

Polypoplene, Acrylic, Soyabean and Silk etc.

PRINTING, DYING AND SITITCHING:

All dyed and printed fabric is converted into a finished product at the stitching unit of

KTML. Kohinoor has also developed a number of special finishes for home products.

These include Anti-Bacterial, Easy Care, Scotch Guard, Water Repellent and Fire

retardant finishes.

QUALITY INSPECTION AT KTML

At KTML Quality inspection is necessary to ensure the quality of the product. Quality

Inspection can be defined as the critical examination. KTML divides the quality

inspection in to three stages.

RECEIVING INSPECTION:

Receiving inspection are carried out before the start of a process, at the end process

and then after the final stage of production system to segregate good products from the

bad ones. Non conforming products are reworked, downgraded, scrapped or even

used for the purpose other than original.


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IN PROCESS INSPECTION:

In-process inspection are carried out during the process of manufacturing such as

during cutting, stitching, pre final audits.

FINAL INSPECTION:

Final inspection are carried out after the completing of the whole manufacturing

process, once the product came in the from of finished good.

QUALITY ASSURANCE DEPARTMENT:

At KTML Quality Assurance is being practiced. There is a separate department by the

name of Quality Assurance Department. In some areas there is a blend of both Quality

Assurance and Quality Control.


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HUMAN RESOURCE DEVELOPMENT & MANAGEMENT

Human resource can be a very crucial factor in implementing the TQM concepts in any

organization. It is the people who can really make quality work in their job. The best

way to achieve success for any organization is to involve and empower its employees

at tall levels.

TRAINING:

At KTML they provide training to there employee. Almost all courses conducted more

then one time in a year. Some of these courses are specific to higher level or

managerial level and some are for the lower level workers. Employees are also given

orientation training at the time of induction. They are told about quality processes being

followed at the mill and about the quality standards. This training is given by the quality

assurance department as well as by the department in which the employee is hired.

The Human resource Department also gives orientation training to the new employees.

ISO 9001-2000 AWARENESS:

They run this training course during April and Sept under the supervision of top

management. However this course is mostly attended by the top and middle level

employees.

UNDERSTANDING SA-8000:

KTML is now striving for SA-8000 certification. This is mainly concerned with the

workers and quality of work life. The main purpose of this training course is to make

employees understand SA-8000. This activity is done during the month of Feb and

December.

IMPROVING PRODUCTIVITY:


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Quality implementation in an organization leads to an increase in the overall

productivity. This course is carried out at KTMLG for the top level as well as the lower

level employees.

STATISTICAL TECHNIQUES:

This course is conducted during the months of January and August. This course is for

managers and top level employees.

TRAINING TECHNIQUES FOR TRAINERS:

Before launching the training courses instructors are trained so as to give training on

some specific lines. HRM department carry out this programs during the month of

January.

CUSTOMER FOCUS AND SATISFACTION:

KTML deals with both the national and international clients. Customers are given very

high priority. KTML is not giving any off-shelf products but the customers give their own

specifications and then products are made accordingly. The industry defection rate is 4-

5% and they are maintaining within the same limits. At KTML they can customize the

processes in order to meet the customer specifications but they never change or

compromise on customer specifications. Every process is in documented form. At each

level some changes occur in almost all the processes but customer specifications in the

document never changes.

They are meeting and fulfilling their customers needs and have made loyal customers

in local as well as the foreign market. One thing that we would like to add and which we

think would add to their customer satisfaction is that if they would feel that there are

things which can improve the product of the customer and could give them cost or

other feature benefits. Also they should get a continuous fed back from their customers.

Even if they are not preparing any product from them they should provide their regular

customers with feedback form. Also they should also provide them with the samples of

the products or designs that they are producing at their factory. Also they should invite

the customers for inspection while processing for their orders, from time to time.

INVENTORY CONTROL (JUST IN TIME):


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For inventory control they have the Inventory Department. Inventory is not maintained

on Just In Time (JIT) basis because of the poor infrastructure. The transport system is

not very efficient also roads are not in a very good condition so you are never sure of

whether your goods will reach on time or not. So at KTML goods are reordered on need

basis.

BENCH MARK:

KTML do not benchmark any certain company. They benchmark their processes with

relation to the House of Quality i.e. they check for the processes of other companies

and categorise them and if they find any process better than their own then they

benchmark in that area. They can be benchmarked themselves by other companies for

any process as well. To benchmark in any area they look for cost and productivity,

quality, timeliness and efficiency of that process for the business operations. After

checking these things they check their own processes to determine that why they are

lacking behind and then they take the required action. As KTML is an exporting

company so they should benchmark their processes with the processes of foreign

competitors.

ACHIVEMENTS

AWARD CERTIFICATES:


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HAVING OWN ELECTRICITY PLANT:


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KML having own electricity power plant which is producing not only for the KWML but

also providing electricity to other companies and to govt. at subsidy rate.

ERP SOFTWARE:

ERP (Enterprise Resource Planning) has been installed in KML thats why company is

saving all records in systems and having huge database.

POWER LOOMS:

KML has purchased latest power looms Toyota Air Jet Power Looms. Thats why they

have reduced the production cost and have increased the quality and efficiency of their

textile products.

QUALITY FAILURES OF KTML

MAJOR DEFECTS:

Major woven fabric defects include but are not limited to slabs, holes, missing yarns,yarn variation, soiled yarns, and wrong yarn. Major dye or printing defects are out of

register, dye spots, machine stop, color out, color smear, or shading.

EMPLOYEES MOTIVATIONAL LEVEL:

Their employees are not motivated thats why they are getting off and putting their

resigns in front of managers and executives. This is the responsibility of HR department

to find out at to see at the time of hiring them that what the thing is that their employees

can be motivated.

EVERY BOOKED ORDER IS DELIVERED LATELY:


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The delivery of each contract is always not done on time. The customer has to wait for

4 to 5 weeks to get his/her desired product. The main reason is that late purchasing of

raw material. Raw material just like Yarn and Sizing material is not available on time

and some time it happens that there is shortage of raw material during the running

contract thats why production department has to wait for the raw material.

ADMINISTRATIVE EXPENSES:

There are high overhead charges throughout the year particularly administrative

expenditures. Management whether it is lower management or upper management, the

expenditures are same but company is getting equally profit from them thats why

expenditures are increasing.

RELIABILITY ON FOREIGN CUSTOMERS:

Always organization has to rely on foreign customers. KTML is too much depending

upon their foreign customers but because of rapid changes in political situation, trade &

export laws it would become risky and loss of customers.

COMMERCIAL DEPARTMENT:

Commercial department of KML is showing its little bit bad performance. Means always

the yarn is purchased late and on credit and payments are done by the department

always very late. There is no proper or pre-plan for the month or for couple of weeks so

that amount should be received to pay the suppliers. Each time purchasing of yarn is

done belatedly so that looms not run and hence per day cost increased and

depreciation also.

GODOWN POSITION:

There is no proper placing for final products to place them safely and at the time of their

dispatch there is possibility of mistake.

ERP SOFTWARE:


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Its good that KML has ERP software in their systems. But there are number of errors

that are occurred much time. For example, during the dispatch of product, you have to

click all the rolls manually. There is no option to select them all and other problem is to

calculate the weight of packed rolls. You have to do all these things manually.

COMMUNICATION GAP:

There are a little bit gaps in communication between the departments. May be these

confirm each and every thing from each other but still they make mistakes and blame

each others to safe them.

MARKETING OF TEXTILE PRODUCTS:

KML has no proper planning for the Marketing. They advertise about their selves only

from newspapers. Thats why limited number of people knows about them.

CASE OF QUALITY FAILURE:

When we asked about the quality failures of KTML then they told us that in 2001 -2002

we have faced severe loss inside and outside the country because of quality failure due

to fake color and fur.

FACTORS BEHIND IT:

They have not the facility of proper storage thats why the flood effected their stock

which may caused to damage their stock, due to that the quality of color effected.

STEPS FOR IMPROVEMENT/SUGGESTIONS

NEW TECHNOLOGY:

KtML has the opportunity to invest for the new technology. By acquiring the latest

technology, they can increase the production quality, efficiency and can decrease the

cost of production.


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MOTIVATING THE EMPLOYEES:

HR department can prove and show them they are here for employees by motivating

the employees performing their best. They can find the motivation level of their

employees and give them incentives to motivate them.

PROJECTS FOR THE LOCAL MARKET:

KWML has the opportunity to capture the market share locally by launching new

projects just like they have launched Dhanak in August 2008. They can start new

projects in garments, Apparel or Home Tax, Dyeing, Hosiery.

ADVERTISING:

KML has the opportunity to advertise about their selves to promote their textileproducts. They can advertise in international magazines about themselves KML can

publish its own local business magazine to promote themselves . Can also be

advertised over the internet (electronic Marketing)

KMLS OWN SHOPS:

KML can open its own shops in local market where they can display their garments

products (socks, Trousers) and Apparels as well as curtains.

ONLINE SHOPPING STORE:

KML can open its online store where they can show their garments variety and

apparels. The advantage of this step would be Online Marketing Capturing the market

over internet internationally capturing the market over internet locally. The material

which you put on your fair price shop can be sold out at online shop.

CONCLUSION:


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KTML is following standardized processes in their company. They are striving for

continuous improvement in their organization from many years. However still there is

many things to do. Quality cannot be implemented in a big organization like Kohinoor in

one or two years. It requires a complete cultural change and continuous and devoted

leadership struggle. At Kohinoor what we have found is that they are using the

appropriate processes and are continuously trying to make them better. However, the

main area where they are lagging behind and where they are not emphasizing is the

Human Resource management and development. Top level employees are well aware

of their responsibilities and also the market trend but the lower level employees just do

what they are ordered. So they should develop the manpower.They take the T of

TQM as the total products instead of considering all personnel responsible in KTML.

Small q of TQM is applied in KTML. They consider that only the production

department (operators, inspectors etc.) is responsible for poor quality.

REFERENCES:

www.kmlg.com/kmlg/management.php

Mr.shehzad (vice manager in ktml)

051-4422589
http://www.kmlg.com/kmlg/management.phphttp://www.kmlg.com/kmlg/management.php

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