ecutive Summary

Gulshan Textiles is located in Tibba Sultan Pur with capacity of 6000 spindles.
This mill started its production in 1980 and is owned by Gulistan Group, which
also owns Kiwi Shoe Polish located in Karachi. Head Office of Gulistan Group
is located in Lahore.

I visited Gulshan Textiles two times for my report and was always warmly
welcomed by their management and employees.

All machinery installed in the mill is American. Plans and strategies are made
in the head Office. Raw materials purchase decision is also made in the Head
Office. Employees work in three shifts, whereas these are both permanent and
on daily wages.

The mills units is supported by different facilities as canteen, store room,

laboratory, godown, and many others. The production process is divided into
two sections:

Refining section

Finishing section

In Refining Section, Blow Room and Carding Department are present,

whereas Finishing Section consists of Drawing, Roving, Spinning and
Machine Cone, and then finally store Room.

Final product of this spinning unit is in form of yarn, which is both locally and
internally purchased by the customers.

Quality checks prevail in all three stages, when it is in raw material, work-in-
process and finished goods form. For this purpose, a laboratory with advanced
machines is present.

Introduction of the Company

Gulshan Group is basically a group of spinning units scattered throughout the

country. This is one of the big units, which is providing their services for the
industrial sector in Pakistan from last several years. Their services and works
are not forgettable. There are 12 units. The famous ones are:
 Tibba Sultan Pur

Rohri

Lahore

Samma Satta

They are under the name of Gulshan and Gulistan.

Profile of the Company

Gulshan Textile Mills Limited is owned by Chaudhry Abdul Shakoor who has
vast business in the name of Gulistan Group.

Gulshan Textile Mill was started in 1980 and is working since then.

The Head Office of GTM is located in Lahore while the unit is located in
Tibba Sultan Pur.

It has almost 1000 employees working 24 hours a day, seven days a

week. Firm manages 3 shifts each of eight hours from 6-2, 2-10 and 10-6
with 300 workers per shift. The mill runs throughout the year except 10th
of Moharram.

GTM produces yarn of different counts on demand. Their products are

mostly exported to the European countries and Hong Kong and
Singapore. Local market share is less as compared to export business.

The plant, which is installed in the mill, is automated, having maximum

capacity of producing 240 bags daily. The total spindles are 6000.

The company name is renowned all over the Pakistan due to their best quality,
on time delivery and continuous improvement. They always keep their
customers demand and their requirement in their mind and emphasize on better
to better.

Company mission statement

As all others companies, company has also their mission statement, which
clearly tell that why company is in this business and what are their beliefs. The
statement is,
"We are in this business to provide the customers good quality cotton yarn
and fastest and on time delivery service"

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:

It was away from city, because if it will be in within the city it will
create a lot of problems for the organization survives.

Land was very cheaply available because in the cities land is very costly
available. That's why company decided to locate the mill out side the
city of Multan.

The labor was easily available and cheap as well. The area is surrounded
by villages. This is because labor on daily and monthly wages is very
easily accessible.

The unionization of employees is minimum. If the mill would have been

installed within premises of city, then due to communication of different
employees union becomes strong problem for management.

Transportation is also easily available, from where company can contact

with the whole Pakistani markets.

Company believes that due to this location they can provide the good
services to their customers.

Distribution

Distribution is another tool which also effect the company over all
performance, which belong to any type of industry.
 Company also emphasizes their distribution system. They want to
provide their customers on time delivery services. For this reason,
company has very effective and efficient distribution system. They have
their own trucks or they have their contract with the transport agencies
for the local delivery purposes, which are playing very active role in the
filed of distribution.

Else this, for the export purposes company uses the containers for the
efficient delivery purposes. In each containers there are 350 bags are
packed. These containers are used for the long routes and for the local
services of distribution, they normally used the truck system.

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:

Inventory Materials and Suppliers.

Inspection and Quality Control

Laboratory

Packing Facility

Canteen

Labor Colony

Staff Colony

Medical Facility

Tube Well

Grid Station

Cotton Godown

Mechanical Workshop

Warehouse

Forecasting

Forecasting methods in GTM revolves around the concept of supply and

demand. The methods used for forecasting are:

Judgmental

Time series (for purchase of raw material)

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

Finishing section

Refining Section

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

Blow room
 Carding

Blow Room

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).

Carding

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:

Drawing

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.

Roving

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.

Ring

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

Machine Coner or AutoConer

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.

Store Room

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:

Thick yarn 1 – 10 count

 Coarse yarn 11 – 20 count

Medium yarn 21 – 40 count

Medium fine yarn 41 – 80 count

Fine yarn 81 and above

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

Work-in-process Inventory

Finished Goods Inventory

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:

Raw material

Work-in-process

Finished goods

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:

Moisture level

Thickness

Color of cotton

Presselay strength

Trash content

Staple length

Uniformity ratio

Short fiber percentage

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.

Quality Assurance of Work-in-Process and Finished Goods

Colorimeter

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.

Micronere Tester

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.

Fibrograph

It makes use of a computer to check staple length.

Stelometer

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

Spectrogram

The periodicity is checked through spectrogram.

Uster-Testing

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.

Uster-tenso Rapid

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

Uster Classimat

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
　

ISO-9000

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.

Author
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.

Special thanks to:

Chaudhry Nisar Ahmad (General Manager)

Chaudhry Shakoor (Technical Director)

Javad Ahmed

Majid farooq

Contents

Executive Summary 1

Introduction of the Company 3

Organizational Setup 5

Location 6

Facility Design & Layout 8

Support Facilities 9

Forecasting 10

Capacity Planning 11

Production Process 12

Production Flow Chart 16

Product Planning 17

Gulshan Textile Mill’s Other Operations 18

Material Requirement Planning 19

Inventory Management 20

Quality Control 22

ISO-9002 25