Table of Content
Serial
Chapters
no
1
Brief History/Introduction
1.1
MTM division & Main Office
1.2
Vision Mission Statement
1.3
CEO Message
1.4
Values
1.5
Certification & Award
2
Organizational Structure& Hierarchy
2.1
Designation Scale at MTM
3
Product(s) Introduction
3.1
MTM Operations
3.2
Production range of MTM
1
Page No
3.3
4
A Brief Process at Mills & at Garments Division
Departments
2
3
CHAPTER NO 1
BRIEF HISTORY MTM
1.1 History
Ch Nazir Ahmed Mr. Shahid Nazir father started his business in 1973 with Kohistan Bus
Service. Afterward Dreamland Hotel, Sangeet Cinema, Azad Beverages were establish in 1978
and 1983 respectively. Mr. Zahid Nazir and Mr. Shahid Nazir helped his father in the formation
of an industrial co-operative bank along with the developments of Rabia trust Hospital. Kakakhel
Ghee Mills and Flying Training School was established in 1994.
MTM was incorporated in 1984 with 4 spinning mills. Masood Textile Mills Limited is a public
limited company that was set up under the Companies Act, 1913. All its manufacturing units are
located in Faisalabad. They also have two liaison offices in Lahore and Karachi. But registered.
Office is in Faisalabad.
It is a vertical textile unit. It has its own harvesting, weaving, processing and sewing units. In
1993, the company changed its strategy and closed three spinning units. In 1995 the company
started its garments unit with only 35 sewing machines but today it has 5600 sewing machines of
different brands. All the credit for this success goes to the visionary personality of Mr. Shahid
Nazir, Chief Executive of the company.
They create products ranging from basic to highly fashionable apparel, and strive to lead the way
in manufacturing thereby responding to emerging trends in the industry. They translate our
customers' conceptual ideas into reality and shape them through our technical bent and
professionalism. The team here strongly believes that customer satisfaction is the essence of
today's business. MTM has skilled technology, knowledgeable products and most importantly,
good staff to ensure complete customer satisfaction.
1.2 Introduction:
Masood Textile Mills Limited (MTM), a trailblazer in the textile industry, driven by a
commitment to innovation, sustainability, and excellence. As we unveil the story behind our
4
success, join us in exploring the various aspects of our vertically integrated operations that have
positioned MTM as a global textile leader.
Embark on a visual journey through the state-of-the-art facilities of MTM, where our expertise in
spinning, knitting, dyeing, and finishing come together to create world-class products. Witness
the dedication and passion of our skilled workforce and the sophisticated technology that enables
us to deliver unparalleled quality to our esteemed clientele.
Beyond our exceptional manufacturing capabilities, MTM is defined by its unwavering focus on
innovation and research. Our innovative research and development division continuously strives
to develop ground-breaking techniques, materials and processes that set new standards in the
textile industry and ensure that MTM remains at the cutting edge of development.
1.3 MTM Division &Main Office
Sargodha Road Faisalabad
Head office: - Jail Road Faisalabad
Factory: - Sargodha Road Faisalabad
Motarway&
sargodha
Road
Jaranwala
Road
Satiana
Road
MTM
Division
Sheikhupura
Road
Samundri
Road
5
1.4 Vision Mission/ Statement
1.4.1 Vision
 A leading producer of textile products by providing the highest quality products and
services to its customers.
 Strive for excellence through commitment, integrity, honesty and teamwork.
 Respect the corporate citizen for being a highly ethical company and playing an
appropriate role in the social and environmental aspects of the company.
 To develop a highly motivated and professionally trained workforce, which drives
growth through innovation and innovation?
 Continued increase in income in real terms. Our First Responsibility
1.4.2 Mission
Our mission is to be a vibrant, profitable and growth oriented company by providing return on
investment to our shareholders and investors, quality products to our customers, a safe and
friendly work environment for our employees and I want to present the image of Pakistan in the
international market.
1.5 CEO Message
Welcome to MTM, Masood Textiles operates worldwide with 24000 employees as part of our
team.
The MTM collection has a wide selection of quality apparel including t-shirts, polo shirts,
jogging sweats, Henley shirts, raglan shirts, tank tops, bikinis, shorts, pants and sleepwear.
Qualified professional staffs, a team of talented merchandisers, excellent supplies and support
services, and state-of-the-art technology have been the driving force behind MTM's phenomenal
growth over the past year.
MTM has expanded its operations to include the Internet, and has taken advantage of the variety
of international trade facilitated by the Web. MTM now uses state-of-the-art client/server
6
technology for its market intelligence processes to coordinate with its global buyer network and
across the globe.
Join us as we dive into Masood Textile Mills Limited's (MTM) recent Diversity Outreach
Program (DOP) in the scenic region of Gilgit Baltistan. This inspiring initiative aims to uplift the
local community by providing essential services and creating employment opportunities.
In collaboration with Rabia Trust Hospital Faisalabad, MTM organized free medical camps that
offered free consultations and medicines to all patients. Witness the incredible partnership
between MTM and Rabia Trust Hospital Faisalabad as they work together to ensure the wellbeing of the local community.
The program has received tremendous support from Karakoram International University Gilgit
(KIU) and the Directorate of Technical Education and Skill Development (DTESD) in Gilgit
Baltistan. KIU and DTESD have not only welcomed and praised the initiative but have also
extended their maximum support, guaranteeing their continued assistance in future endeavors.
Discover how MTM's DOP has made a tangible difference in the lives of residents in Gilgit
Baltistan. Learn about the wide range of job opportunities that MTM has offered to graduates
and skilled workers, fostering economic growth and development in the region.
Witness the stories of individuals whose lives have been positively transformed through this
initiative. From providing healthcare support to empowering local talent, MTM's Diversity
Outreach Program, in collaboration with Rabia Trust Hospital Faisalabad, KIU, and DTESD,
serves as a beacon of hope and progress in Gilgit Baltistan.
1.6 Rules and Regulation

Compliance with Laws and Workplace Regulations

Prohibition of Forced Labor

Prohibition of Child Labor

Prohibition of Harassment or Abuse

Compensation and Benefits

Hours of Work
7

Prohibition of Discrimination

Health and Safety

Freedom of Association and Collective Bargaining

Environment

Customs Compliance

Security
1.7 Certification & Awards
EOBI Annual Pension Day on 06 November 2019
EOBI Annual Pension Day Certificate / Award
FTL Award 2013
President of Pakistan Awards 2010-2011 for Best Export and Best Hosiery
Faisalabad Chamber of Commerce
JCPENY PURCHASING PARTNERSHIP AWARD 2007
J.C. Penney Purchasing Partnership Award (2004, 2006)
UBL Award
Divisional Quality Award 2005
JC Penney has awarded MTM the "Divisional Quality Award".
1.8 Customers Portfolio
MTM is proud to work with the best labels in the world. This exhibition of brand labels has been
a continuous learning experience for the entire team. Currently, 80% of the production is
exported to the US and the remaining 20% to Europe. Are brands?
8
CHAPTER NO 2
ORGANIZATIONAL STRUCTURE& HIERARCHY
2.1 Structure
2.1.1 Top Management
Director of
Production
Chief Operating
Officer
Director of
Operation
Cief Finance
Officer
CEO
Director
Idustrial
Management
Head Corporate
HR &
communication
Director
Marketing
9
2.1.2 Middle Management
Senior
Officer
Deputy
manager
Manager
Assistant
Manager
Officer
2.1.3 Lower Level Management
Helper
Supervisors
Foramens
Operators
10
2.3 Designation Scale at MTM
Chief Executive Officer
Directors
Level D
General Manager
Level G1
Deputy General Manager
Level G4
Senior Manager
Level M1
Manager
Level M2
Deputy Manager
Level M3
Assistant Manager
Level M4
Senior Officer
Level M5
Officer
Level M6
Supervisor
Level S1
Assistant Supervisor
Level S2
Inspector
Level S3
Packer
Level S4
Helper
Level S5
11
Chapter No 3
Product’s Introduction
3.1 Product
3.1.1 Features
To produce quality products and that too on time, you need a good manufacturing facility,
capable of handling any challenge thrown at you. In this regard, MTM has the best infrastructure
capable of giving you quality products. Our manufacturing processes are vertically integrated to
facilitate all processes involved in garment manufacturing under one roof. This enables us to
reduce the time it takes to complete your orders. All our machines are state-of-the-art, and MTM
has never shied away from purchasing state-of-the-art equipment whenever required. All our
divisions are equipped with the latest equipment to maintain the high standards we have set for
ourselves.
3.2 MTM Operations
3.2.1 Spinning
Masood has invested in growing of cotton. The company would ask the growers to sow the most
suitable cotton variety for knitted products. With the help of ginning process, we procure the raw
cotton for the whole year. This helps us to provide the consistent quality products for our
customers throughout the year. If the customers want to lock the prices for a certain period,
Masood can offer this service as we reserve the cotton for the particular program.
The spinning division of Masood Textile Mills has a production capacity of14400 Spindles &
300 Bags/day. Yard spun per day (based on 20/s count). This division is equipped with the latest
machinery from Japan, England and Switzerland produce a wide range of yarns from 10/s to
40/s. The spinning laboratory is equipped with the latest and most advanced testing equipment
for consistent quality. China, Korea, Hong Kong, Japan and Malaysia export of 50% yarn
products. The remaining capacity is used for in-house production of fabric which is later
converted into garments.
12
3.2.2 Knitting
In order to produce high quality woven fabric, it is important to procure high quality raw
materials at competitive prices. In Masood, the best quality yarn in the market is prepared for
weaving in our mill.
A knitting section of the machine capable of producing jersey, puck, fleece, interlock and rib in
addition to single knit jersey mini jacquard designs of single knit jersey. Gauge ranges from 9 to
28 for single knit, 18 to 24 for interlock and 15 for rib machines. Most machines are equipped
with spandex attachments. Masood has added striper machines to produce fed, auto and
engineered strip jersey. Masood has added striper machines to produce fed, auto and engineered
strip jersey. Most of it has color and arm band of flat bed machines which make expected 100%
production and only 'A' grade cloth is passed to downstream operations. Masood has a weaving
capacity of 95000 kg per day.
3.2.3 Dying Process
Our in-house and very well-equipped Dyeing department with a production capacity of around 1,
16,295 Kg of dyeing / day allows us to fully meet our dyeing requirements. We have dyeing
machines for dyeing cotton fabric and a fully computerized high temperature jet-dyeing machine
to dye all kinds of synthetic fabrics including polyester. A well equipped laboratory ensures all
dyed fabric is properly checked, as per buyer’s requirements, for factors such as shrinkage, color
fastness, etc
3.2.4 Finishing
Finishing department at Masood, comprises of automatic hydro-extractors for the removal of
moisture from dyed fabric, computerized tensionless dryers for instant fabric drying, soft-setting
and calendaring machines for systematic soft-setting and rolling of fabric, fully computerized
compaction machines for complete shrinkage control, and panel wash machines and tumble
dryers for panel washing the fabric to give minimum shrinkage value. Again personal attention
ensures that all the fabric leaving the finishing department is properly inspected and thoroughly
checked for relevant factors before being forwarded to the next stage of production.
13
3.2.5 Cutting
7 cutting units working under the supervision of skilled unit managers, these cutting units are well equipped
with latest machinery including Gerber Plotter, Auto Spreader, Auto cutter, Band Knife, Spreader, and
Bierrebi‫۔‬
At Masood Mill, the cutting of cloth is done with utmost care. Modern machines have been selected for this.
Feed of the Arm Machine, Lock Stitch Machine, Hand Jack etc. are included. etc. The fabric is cut according
to the garment size and sent to the next step. After which the weaving stage of the cut fabric begins.
3.2.6 Stitching
With more than 6,185 sewing machines, highly skilled and expert operators. The Quality control
and Quality Assurance departments are in place to make sure the company’s objective of zero
defect. Computerized Bar coding and Back Track systems provide Masood 100% predictability
and tracking performance. Masood has the capacity to produce versatile garments worth around
9.5 million per month with maximum flexibility in sizes and color assortments from basic to high
fashion, men's, women's and children's.
3.2.7 Laundry
Laundry
department
at
Masood
textile
comprises
of
automatic
and
turbo
load
washers.
The laundry process is done at above and below the room temperature to increase the activities of any
chemicals
used
and
the
solubility
of
stains.
Different Laundry units are working under the supervision of skilled managers.
3.2.8 Quality Lab
From raw cotton, yarn, fabric, processing, cutting, sewing and packing, quality is checked at
every stage of manufacturing. Before cutting the fabric, it is checked whether it conforms to the
customer's shrinkage standards or not in the sewing units.
3.3 Production Range of MTM
MTM is a leading apparel company in Pakistan with the expertise and machinery capable of
transforming consumer ideas into high-quality garments, regarded as world-renowned brands.
14
 Yarn
 Fabric
 Long Wear
 Active Wear
 Sleep Wear
 Athletic Wear
 Sports Wear
 Under Wear
MTM has categorized its products in two main categories which are known as;
1. Tops
2. Bottoms
3.3.1 Tops:

High Neck

Mock Neck

Polo Shirt

T-Shirt

V-Neck

V-Insert

Raglan Shirt

Rugby Shirt

Hood Shirt

Full Zipper Hood Shirt

Quarter Zipper Hood Shirt

Tank Top
3.3.2 Bottom:
 Pant
 Trouser
15
 Short
 Boxer

Boxer Brief

Boxer Short

Leggings
16
Chapter no 4
Departments Detail
4.1 Departments
Departmentalization is the arrangement of Individuals job activities into groups and these groups
are combined to from larger department and units to form the total organization
The Departmentalization in Masood TEXTILE is very clear. These departments are Human
resources marketing finance production export, purchasing, administration and quality assurance.
Except quality assurance all department are under the supervision.
1. HR Department
2. (I E) Industrial Engineering Department
3. IT Department (Barcode section)
4. Merchandiser & Marketing Department
5. Research & Development Department
6. Production & Planning & Department
7. Quality Check Department (QC)
8. Quality Assurance Department (QA)
9. Procurement Department
10. Stores Department
11. Finishing Department
12. Finance Department
13. Forwarding Department
4.2 HR Department in MTM
Structure of Hr. Department
Human Resource Manager
Sr. Human Resource Officer
17
Human Resource Officer
Management Trainee
HR department in MTM is involved in different types of human resource development and
human resource development activities. Here are the activities of HR department in MTM.
Basically HR Department acts as a bridge between clients and management. Escalates client
issues to management, and resolves them.
1- Recruitment
2- Training and Development
3- Compensation
4- Performance Appraisals
5- Employee welfare
6- Rewards and Punishments
7- Retiring and Termination Benefits
4.1.1 Recruitment
HR Department in MTM regarding recruitment is almost online up to the middle level
management and has the following procedure;
 Approved strength in each department
 Invitation of vacant or new position applications
 Scrutinizing of applications.
 Test including intelligence and aptitude tests
 Interviews in panel form
4.2.2 Training and Development
The training and development process in MTM is very strong. If any new client is recruited, he is first
trained on his respective job and then tested. And its setup is as follows.
A- Indoor Training
 Apprentices
 Trainee supervisors
18
 Trainee Operators
 Trainee Engineers
 Management Trainees
 Trainee Officers
 Trainee business analyst
B- Out Door Training
 Training in institutions
 Meetings and reviews
4.2.3 Compensation\Salary
MTM has set up the best compensation for workers. It also includes salaried persons and
contractors.
 Market rate
 Overtime
 Privileges
 Graduation
 Accommodation
4.2.4 Rewards and Punishment
In MTM, good work is rewarded and violations of company rules and regulations are punished.
 Appreciation
 Cash Prizes
 Promotions
In MTM for the control purpose there are also punishments
 Disciplinary Actions
 Show cause optics
 Suspension
 Terminations
 Charge sheets
 Fines
19
4.2.5 Performance Appraisals
The way of promotions in MTM is very fair. Personality and job-related traits are regularly
assessed. Excellent performance results in good rewards in MTM, and promotion of co-workers.
4.2.6 Employees welfare
MTM also provides many facilities to its employees. MTM has many employee benefit policies
in place. Some of them are as follows;
 Health insurance
 Social Security
 EOBI
 5% of Profit
 Accommodation
 Transportation
 Canteen and Mess
 Leave Encashment
4.2.7 Retiring and Termination
Gratuity and provident fund is being maintained for the retiring personals in MTM.
HR department in MTM is almost computerized and includes
 HRMS (Human Resource Management System)
 GMS (Gate Management System)
 JMS (Job Management System)
 Job Bank
Objectives of HR Department:
 Helping the organization reach its goals.
 To increase job satisfaction and morale of employees.
 Effectively utilizing the skills and abilities of the workforce.
20
 Developing and maintaining quality of work.
 Communicating and implementing HR policies.
4.3 Industrial Engineering Department
"The branch of engineering that utilizes all resources—human, capital, land, and business—to
increase productivity."
I.E believes that there should be a place for everything and anything.
4.3.1 IE has three Division
Industrial
Engineering
Machine
Shop
Training
Center
Process
Improvement
4.3.2: I.E performs following function:
Standard Allow Machines (SAM)
This is the time required to specify. This is an important task as it tells how much time the
production will take.
SAM is calculated as follow
SAM= (Avg. single time * Rating) Basic Time + (Person and Machines Delay) + Bundle
Handling Time (BHT)
Measure Efficiency
Efficiency of workers is measured as follows:
21
((Output * SAM) / Shifts Minutes * No. of Machines) * 100
Measuring Performance
Performance of worker is calculated as follows:
((Output * SAM) / (Clock Time * No. of Machines)) * 100
4.4: I T Department
IT department Structure:
Electronic Data Processing Manager
DM Date Processing
DM Data Operations
DM Web/Email
AM Date Processing
AM Data Operations
AM Web/Email
Data Processing Officer
Data Operating Officers
Web Developers
IT department is very strong in MTM. In MTM everything is online which is maintained by the
IT department. Qualified staff has developed their systems such as;
 Human Resource Management System
 Apparel Management System
 Apparel Costing System
 Fabric Management System
 Inventory Management System
 Vehicle Management System
 Gate Management System
 Organizational Planning & Development
IT performance many other function in the MTM which are as under;
 Card Scanning
 Barcode & Finished Product
22
 Bar Code on Packed Product
 Catering
 Making Gate Pass
4.4.1 Back Track System
Masood Textile Mills is the only textile in Pakistan to have a state-of-the-art computerized
barcode system that ensures quality in every step of production from spinning to packing. The
products of each department have barcode stickers, on which all the details of the operations of
that product, the date and in whose presence the goods are being packed or transported are all
present. So if a problem is reported, one can find the root of the problem and be able to prevent
its occurrence in the future
4.5 Merchandise &Marketing Department
4.5.1 Hierarchy Merchandise &Marketing Department:
DG Manager
Senior\General Manager
Manager
Deputy Manager
Assistant Manager
Officer
MTO (Manager Trainee officer)
The main objective of marketing department is to attract customers by ensuring competitive
price, sound back track system and quality with complete customer satisfaction.
The MTM merchandising department is very active. It also performs marketing function. Since
MTM is a marketing oriented company, this department has to play an important role in the
company. The main objective of the merchandising sector is to take orders from existing
customers and attract new customers. It locates new customers by advertising in magazines,
23
displaying and providing samples to potential customers. It is the most important responsibility
to satisfy the customers by providing quality products and timely delivery.
4.5.2 Merchandising:
Merchandising is a business marketing activities responsible for ensuring the specification of
both quality and quantity of products. Merchandising means the sole responsibility of the
Merchandiser.
4.5.3 Duty of merchandiser describes himself like this:
The man who collects the orders from the marketing department getting the production of raw
materials on time with quality and keeps the goods ready and delivered as per the given time.
Garment trading means buying raw materials and accessories, manufacturing the garments,
maintaining the required quality level and exporting the garments within the stipulated time.
If one is to be designated as a merchandiser, the word itself demands certain qualities from that
person, now let us see what are the hidden meanings in the word "MERCHANDISER"?.
M- Should have good Managerial capacity.
E- Efficient in both English written and spoken.
R- Having high sense of Responsibility.
C Always keep Commitment.
H- Leads honest life.
A Attitude should always be positive in resolving any problem.
N- Never does any argue with buyers and seniors.
D Fully devoted to his service.
I always well informed about his all orders.
S- Sincere in office and daily works.
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E- Enthusiastic in nature.
R- Regular in e-mail correspondence.
4.5.4 Types of Merchandising:
Two type of merchandising done in garment exports
1. Marketing merchandising
2. Product merchandising
Marketing Merchandising:
Main function of marketing merchandising is production development and Costing. Ordering
Marketing Merchandising is the development of order products and has direct contact with the
buyer.
Product Merchandising:
Products are traded in units. It includes all responsibilities from sourcing to finishing i.e. after the
first sample, trading of the products begins and ends with shipment.
4.5.5 Key responsibilities of merchandiser are as Follows
 Market and product analysis
 Product development
 Designing and development
 Costing
 Confirming Price
 Internal & External communication
 Booking Order
 Preparing Purchase Order
 Raw Material
 Preparing Internal Order Sheet
 Lab Dips
 Accessories & Trims Mediating Production and Quality Department
25
 Advising and Assisting Production
 Sampling
 Production Follow Ups
 Taking Responsibility for Inspections
 Helping Documentation Department
 Giving Shipping Instructions and Following Shipping
 Following up the Shipment
 Payments Follows
4.5.6 Most importance things for a Merchandiser are;
Communication
Merchandiser
Production
Follow up
Planning
A smart merchandiser is responsible for handling the order at four stages.
1. New Order
2. Confirm Order
3. Running Order
26
Sample:
Sending quality sample to new buyer for better understanding of workmanship of the factory.
Samples play a vital role to get new orders. Without quality sample suppliers cannot develop a
new business, so sample should be better quality before bulk production.
Types of Sample
Broadly garment samples are categorized as;
 Development Sample
 Production Samples
Samples that are made in development stages are as following:
 Proto Sample
 FIT sample
 Salesman Sample/ Photo shot Sample
 Size Set Sample
 Pre-production Sample
In production stage factory needs to submit few samples that includes
 Top of production Sample
 Shipment Sample
Proto Sample:
A proto sample is a type of new design created by a designer. This is the first prototype in the
product development phase. A proto sample is made to create a design for a style or line or to
present the structure of a garment. Fit and fabric details are not considered in the proto sample.
Fit Sample:
27
After the proto Sample is approved, the FIT is made with actual measurements. The pattern is
modified to suit the customer's desire. A FIT sample is being tested on a live model or dress form
to confirm the fit and fit of the garment.
Salesman Sample:
A salesman's sample is made for display in a retail showroom. A salesman's sample (SMS) is
shown to gauge customer perceptions and to forecast demand for a specific style of buyer based
on customer response. Sales samples are made with original fabric, trimmings and accessories.
The buyer pays the manufacturer for the salesman's sample.
Size Set Sample:
The purpose of the size set is to test the fit of clothing in different sizes. At this stage the factory
produces samples in various sizes. Usually, buyers ask for sample size sets in jump sizes like S,
M, L and 2XL. Buyers check the sample size set and give feedback to the factory if something
needs to be corrected.
Pre-Production Sample:
All the samples mentioned above are made in the sampling department. The buyer wants the preproduction (PP sample) to be made in the actual production line, so that the operators know what
they are going to make. This pattern is made with original fabrics, trims and accessories and
made by Sewline tailors. The PP sample must be approved by the buyer or home buying
tradesmen (technical persons) before proceeding with actual production.
Top of Production Sample (TOP Sample):
Once production is online, some pieces are removed in the middle of production. Production
pieces are sent to the buyer as top samples. Not all buyers ask for top samples. The objective is
to cross-check whether the factory is following the PP sample specification or not.
Shipment Sample:
When the style is completed and packaged for shipment, 2-3 completed and packaged pieces
with all packing details are kept for future reference. The shipment sample is kept by the factory
28
traders and the purchasing merchant. Approved shipments are sent directly to the warehouse and
merchants on the buyer do not receive the garments from the shipment. This is why they keep the
shipment sample for future reference.
Getting Purchase Order (PO)
A purchase order (PO) is a commercial document and the first official offer issued by a buyer to
a seller, specifying the types, quantities, and agreed-upon prices of products or services.
Acceptance of a purchase order by the seller creates a contract between the buyer and the seller
so no contract exists until the purchase order is accepted. A PO is used to control the purchase of
products and services from external suppliers.
Those items are included in P.O. This are;

PO Number

Style Number

Order Quantity

Product Description

Size Breakdown

Supplier Bank Address

fabric Buyer Details

Country of Origin

Payment Terms

Carton Marks

Fabric Construction

Accessories

Care Label Instruction

Port of Loading
Production:
Generally after getting PP approval organization mover for fabric production. The usual gap
between PP approval and production is 30 to 45 days.
29
Once sampling is complete the Head of Convention Merchandiser forwards the order file to the
Head of Quality Control along with a copy of the approved sample and expected production
schedule. Make sure the file is sent at least 5 days before the actual production starts.
A meeting should be held between Head of Merchandising Department, Concern Merchandiser,
Head of Quality Control Quality Control Officer (Production) to discuss all the details of the
order.
Obtain an instruction sheet covering all the required information from the quality control officer
& approve. Make sure any new comments are added into the instruction sheet. Regular follow up
should be made with the buyer & Quality Control regarding the status of production
Obtain fabric quality testing, ILC, IPC and MPC and FRI reports for each order from Quality
Control and keep a copy for records. Update the order checklist. The status sheet is updated
accordingly. (Daily basis) production monitoring system with suppliers for smooth delivery of
garments and accessories:
Sourcing a variety of yarns and other materials. Stock of cotton and yarn required for production.
Also taking care of material release for store outsourcing. Raising purchase order for materials
required in production/sampling. Arrange timely delivery from suppliers to avoid production
delay
Testing of cotton \ yarn is done with store supervision, as rejected goods are returned to the
supplier.
If any production process is outsourced, after entering the factory premises, the goods are
checked for shortages, damages etc. before releasing the production.
Good raw materials play a key role in successful production which minimizes rejects and ensures
good output. Fabrics are tested for quality of color fastness and fabric strength. A separate book
of fabric swatches can be made available, offering an insight into the range of fabrics available.
Fabric sourcing is good in our country. All testing methods are certified by ISO and AATCC if
required by the buyer.
Preparation of Production Files for Production Starting:
30
 Approval Sample
 Order Sheet
 Measurement Sheet
 Assortment
 Fabric Quantity
 Packing List
 Carton Measurement
Sending Procedure of Pre-production Sample Approved by Buyers, Production File &
Pattern to Master of Factory:
Approved sample, production file and approved pattern are submitted from buyer. The
merchandiser meets with the production manager. Gives details about approved sample,
production file and approved pattern. Then the work begins.
Preparation & Conducting of Pre-production Meeting in Factory Required for Production
Planning in Factory:
Pre-production meeting – Once the pre-production (PP) sample is approved and most terms are
achieved, a meeting with the production team, quality team and sourcing team. All important
comments, procedures to be followed, do's and don'ts are to be discussed. PCD (planned cut
date) scheduling and shipment date are announced to all teams together. Production Plans,
Material Planning and Line planning – Planning is essential to start production on time and ship
orders on time. Planning is required for material sourcing, productivity, line planning.
Scheduling of jobs and responsibilities is defined at this stage.
This meeting should be held directly after the Merchandiser Manager approves the development
concept. The purpose of the meeting is to review initial product and package specifications and
ensure that the supplier is aware of the company's quality and product development procedures.
The meeting should be technical in nature. Therefore, the supplier should bring adequate
representation from its staff to the meeting. Expect to discuss the manufacturing process in detail
and address any potential manufacturing concerns or limitations related to the manufacture of the
item being discussed. At this meeting, the supplier should provide a preliminary specification file
31
along with raw material deals to be developed. The supplier should be requested to formally
acknowledge their requirements within a short period of time. It's a good idea to get it in writing.
Pattern Making:
There are at least 2 patterns in the market.
First Pattern:
A first pattern is the first physical version of any garment as per the artwork done for the
designer and developer.
Human Mind → Diagram → Paper Model → Sample
Purpose: To see the design work and check the fitting.
Status: Nothing Specific
Material: Available
Price: Not Confirmed
Quantity: 1 (for Customer) + (for Merchandiser)
Delivery: As Per Urgency
Second Pattern:
Usually the designer/developer always demands some changes in the first pattern. Therefore, the
second sample is made according to the comments.
Proto Sample:
Where the first sample is made on the designers' artwork, the proto sample is not made on the
designer's artwork; it has to be based on another sample given by the merchandiser.
Purpose: Viewing the workmanship and testing the skills of the factory.
Status: Nothing Specific
32
Material: Available
Price: Not Confirmed
Quantity: 1 (for Customer) + (Self-Keeping)
Delivery: As Per Request
Swatch:
A swatch is a presentation of all materials used for a particular style/order. Usually a small piece
of fabric and each piece of accessory is attached to the board paper in an orderly manner. The
swatch is very important to the production line for the correct construction of the garment and
the QC department ensures this. The concerned merchandiser should confirm/approve the
switch.
Trims:
Trims cover all items used in clothing except basic items. For example, threads, buttons, lining,
beads, zippers, motifs, screws, etc. Hundreds of items are used to manufacture garments, proper
selection of trims and its quality is very important for style, otherwise customers may reject or
return the garment.
Following is a part of list that covers some name of the trims:

Pocket

Twill Tape

Buttons

Draw Cord

Embroidery

Lace

Lining & Interlining

Piping

Zip
33
Preparation of Shipping Samples & Sending to Buyer through Proper
Packing & Documentation:
Shipping: The method of transporting an item is usually email. Shipment is a very basic,
common method of moving something from one place to another or from one person to another.
This process can be done by physically moving goods from one place to another by land, air and
sea or by transporting cargo. A shipping sample is prepared prior to shipment but is sent to the
buyer after final inspection is completed. It is an important sample for the buyer that the sample
department takes extra care to create. It is shipped by air to the buyer for quick departure.
Sending Procedure of Shipping Sample:

Making as per measurement sheet

Quality check

To iron

Labeling

Polo bagging

Forwarding letter

Measurement sheet

Check again at the end.

Send to buyer by courier
Preparation of Packing List after Final Inspection:
There are many methods of packing systems used in the apparel industry. Some of the packing
names are given below:
1. Flat packing
2. Standard packing
3. Hanger Packing
Some descriptions are added on the back of the packaging to attract the buyer. AMS is used in
the store room. AMS includes certain information such as buyer number, order number, style
34
number, and fabric quantity. Follow these classifications when packing garments in the packing
section.

Assort color assort size

Assort color solid size

Solid color solid size

Solid color Assort size
Research and Development Department (R&D department)
A very aggressive and creative R&D department is always on the lookout for innovative product
development that can make MTM the leader of many in the field. Our enthusiastic, extensive and
aggressive merchandising team consisting of experienced and trained MBAs whose primary
objective is to provide ultimate customer satisfaction through product development and smooth
execution of orders. They are always willing to meet and take an average lead time of 4 or 5 days
for a proto sample.
Experiences Professional Management:
The MTM team is composed and balanced of experienced professionals including 700 MBA
Textile Engineers and Industrial Engineers. Continuous training and development keeps them
abreast with modern technical and management tools MTM is also WRAP certified and ISO
9002 certified.
4.6 Product & Planning Control Department (PPC)
As the name of the department indicates these people are responsible for production
management. This department, the merchandiser obtains approval for bulk production, initiates
production planning.
The PPC department plans everything according to the tech pack. The planning includes how
long we have to ship the product, how much fabric should be, how much cotton and polyester
should be in the fabric, the length of the fabric etc. Planning includes;
4.6.1 Accessories Planning
35
Here they plan about buttons, thread, zippers on jerseys, tags on garments and other such indirect
materials for production.
4.6.2 Fabric Planning
Here she plans the fabric quantity, quality and lead time. In which they must have fabric for
making clothes etc.
For both accessories and fabric planning, they chose suppliers who provide them with quality
products at the right time at the lowest cost.
4.6.3 Controlling
It is planned how many workers, machines and time are required for production.
4.7 Quality Control (QC) Department
The quality control department can be referred to as an agent by MTM that checks the required
parameters and suggests solutions at each level of the process. It has two parts:
4.7.1Grey Section
It checks for fabric defects, attaches a barcode clearance number.
4.7.2 Line Section
This section examines finished and dyed fabrics for defects as per requirement.
4.8 Quality Assurance (QA) Department
This department is also responsible for making the product quality oriented. This department
audits uniforms as per military standards. On completion of the audit, this department has to
issue various types of slips to the concerned unit. These slips include;
4.8.1.Green Slip:
This slip is issued when packing and finishing meet the requirements.
4.8.2 Yellow Slip:
36
This slip is issued when there is a discrepancy in the packing requirements.
4.8.3 Pink slip:
This slip is issued when there is a discrepancy in the fulfillment requirements.
The release of these slips does not affect the evaluation of the concerned department but these
slips definitely affect the reputation of the concerned department. Sometimes, if there is a big
difference between the products and the requirements, a penalty may be imposed on the
concerned production unit.
4.9 Procurements Department
It is the acquisition of the best possible food and services of ownership in the right quantity at the
right place at the right time for the direct benefits of the organization.
4.9.1 Function of procurement department:

Receive PPC sheets from store

Take acquisition

Price negotiation

Order place

Shipment of goods

Follow up tools

Accessories

Payments of purchased goods
4.10 Stores Department
At Masood Textile Mills, the fabric store department and accessory stores are centralized, and all
fabrics and accessories first come into the unit from the supplier and are audited here and kept
until distributed to other departments.
4.10.1 Types of Store

Main store

Fabric store (Stock pledge)
37

Shipment store

Main store
4.10.2 There are two types of things, which come under main store.
General:
Stationary, machine parts, maintenance and sentry etc.
Accessories:
Buttons, thread, Zips, Labels, and needles etc.
4.11 Finishing Department
Main Finishing Checks:
1. Stain
2. Darning
3. RE Stitch
Various activities are carried out in the finishing department. This is a very important department
as the garments are sent for shipment from here. After sewing the garment goes to the clipping
department, where the excess thread is cut from the garment. The fabric is checked for stains and
spots after trimming. A garment that has stains on it sends the stain to be removed. 100%
garment measurements are checked by final inspectors, which is another check on garment
quality. Here some under quality garments are sent to the operators for alteration and the
garments which are not altered are rejected. There is a separate sheet for rejected garments.
Ending the charge randomly checks the outfit. Finally the OK garment is sent to the packing
table, where the entire garment is 100% checked before packing. Then the garments are packed
in poly bags and the poly bags are packed in carton packaging and sent to the shipment
department.
All shipment and garment related information is attached through the label.
4.11.1 Labels:
38
 Main Label
 Size Label
 Care Label
4.11.2 GST Specification of garments:

Straight Shoulder

Across Shoulder

Sleeve Opening

Sleeve Inseam

Sleeve Length

Sleeve Length from HPS

Sleeve Hem Height

Upper Arm

Across Chest

Chest

Side Seam

Bottom

Neck Back Drop

Arm Hole Straight

Arm Hole Curve

Neck front Drop

Sleeve Length from CBN

Shoulder Slope

Waist

Collar Band Width

Placket Opening

Placket Length

Waist Band Width

Side Seam Excluding Waist Band

Side Seam Including Waist Band
39

Leg opening

Leg Hem height

Fly opening

Crotch Seam

Thai

Hip
4.11.2 Packing Process:
After stitching, the garments are moved forward for packing. Chain flow is used to pack. One
person checks the product; another applies stickers and tags, then puts into poly bags and then
shifts into cartons. Every person who has operated on a garment will take a barcode slip. And the
last slip is attached to the clothes. This bar code is fed into a computer program. And can be for
backtracking if necessary. These cartons are then transferred to the shipment store for further
processing.
4.12 Finance Department
4.12.1 Structure Finance Department
Finance Manager
↓
↓
↓
DM Account
DM Finance
↓
↓
AM Account
AM Finance
↓
↓
Officer Account
Sales Tax Officer
↓
Finance Officer
The main objective of the finance department of MTM is to manage finance in such a way as to
achieve maximum output with minimum input.
40
MTM's financial management is very strict in providing information. Company rules are too
strict for him. Following are the important functions for it. Following are the important functions
of Finance Department.
4.12.2 Financial Management:
It deals with the cash inflows and cash outflow.
4.12.3 Major cash flow:

Sales Collection

Interest of Deposits

Sales of Leftover

Capital Gains
4.12.4 Major outflows:

Purchase of Raw Material

Purchase of Packing Material

Purchase of Fuel

Wages, Salaries and Payments

Duties and Taxes
4.12.5 Function of Finance department:

Preparation of finance statement

Internal Control

Conduct of audit

Comparison

Order wise profit & loss account and their analysis

Checking of wage and salary

Procurement Bills

GRN (Goods Received Note)

I.T bills
41

Machine bills

Dyeing

Overtime

EOBI

Gratuity

Marriage and Death

Gate pass

Extra Payment

Local Sale
4.12.6 Risk Management Policy:
A company primarily issues a financial instrument to obtain finance for its operations. The
company issues financial instruments such as trade loans and trade creditors that directly shape
the company's operations.
The overall risk arising from the Company's financial instruments is limited.
 Liquidity risks
 Foreign exchange risk
 Credit risk
 Financial reporting risk
 Risks of Corporate Accounting frauds
4.13 Forwarding Department
The company transports goods from one place to another in a safe and efficient manner through
various modes of transportation. We use the most efficient and economical methods of
transportation for goods which may be the services of shipping lines, airlines or road and rail
freight operators. Forwarding department plays a very important role for the shipment of
garments to different countries with the use of many documents.
Containers are used to transfer garments like 20 feet, 40 feet and 40 feet HC.
They use the following formulas to calculate CBM.
42
L× W × H/ 61023 × No of Cartons
For Air
L × W × H/ 366 × No of cartons
L=length
W=width
H=Height
4.13.1 Function of Forwarding Department:

A suitable route for the shipment should be researched and planned

Must obtain, verify and prepare documents to meet customs and insurance requirements.

Arranging air transportation on an emergency basis.

Work closely with customers and third parties to ensure smooth operations to meet
deadlines.

Maintaining current information on relevant legislation, political situation and other
factors that may be affected.

• Data transmission and shipment tracking over the Internet.
4.13.2 Mode of transportation:

Road Transportation

Rail Transportation

Air Transportation

Sea Transportation
4.13.3 DOCUMENTS
4.13.4 Bill of Leading
A document that establishes the terms of the contract between the shipper and the transport
company
43
4.13.5 The following heads includes:

Shipper Name

Consignee

Notify party

Export Reference Number

Agent Name

Vessel Number

Port of Discharge

Place of Delivery

Final Destination

Description of Goods
4.13.6 Air way bill
An air way bill is a documentary proof of the contract of carriage between the shipper and the
carrier.
4.13.7 It includes the following:

Supplier Name

Consignee

Form Export Number

Invoice Number

Notify Party

Airport of Discharge

Airport of Receipt

Airport of Loading

Airport of Goods

Gross / Net weight

L.C Number
4.13.8 Commercial Invoice:
44
The commercial invoice made by the forwarding department.
4.13.9 It includes the following:

Invoice Number

Shipper Name

Consignee Name

Export Registration Number

Payment Terms

Discretion of Goods
Chapter 5
SWOT Analysis
STRENGTH
WEAKNESS
45
1. ISO 9002 Certificate
1. Increased employee turnover
2. WRAP Certificate
2. Central management system
3. Vertically integrated
3. High cost of production
4. High quality products
4. Low productivity
5. Excellent market image in the local and
5. Immobilized staff
international market
6. Non-corporate culture
6. Highly qualified management
7. Inadequate incentives for employees
7. Adequate financial resources
8. Stereotype machinery for processing
8. Competitive advantages
9. Communication gap between different
9. Adopting information technology
departments
10. Recruitment on merit
11. Loyal customers
12. Skilled Labor
13. Broad and motivational vision
14. Back Track System
OPPORTUNITY
THREAT
1. Can expand its distribution such as
1. Entry of new competitors like
China and India.
entering the weaving sector as well.
2. Changes in buyer need and
2. Can introduce your label in domestic
demand.
and international market.
3. Political instability.
3. Can capture new market segments.
4. Changing geopolitical situation.
4. Full entertainment potential in the
5. Change in government policies.
local market.
6. Low price offered by competitor
5. Cost can be reduced by proper
7. Globalization.
utilization of resources.
6. End of quota restrictions by the end
of 2022.
7. Can hire educated and experienced
46
staff.
47
Chapter no 8
Financial Statement Analysis
Financial analysis examines the financial conditions of a company. How much profit the
company made this year and how much loss etc.
We do the financial analysis of the company in three ways.
1. Ratio analysis
2. Horizontal analysis
3. Vertical analysis
Ratio Analysis
Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational
efficiency, and profitability by studying its financial statements such as balance sheets and
income statements. What are the types of ratio analysis?
1. Liquidity Ratio
2. Solvency Ratio
3. Profitability Ratio
4. Efficiency Ration
5. Coverage Ratio
6. Market Prospects Ratio
Liquidity Ratio
Liquidity ratio is a measure of a company's ability to pay its short-term obligations. Liquidity
ratios determine how quickly a company can turn over assets and use them to cover liabilities.
The higher the ratio, the easier it is to clear the debts and avoid defaults.
Formula
Quick Ratio= Current Assets ˗Inventory
Current Liabilities
48
2020
22,957,738-8,125,166 ÷ 19,757,352= 0.7507
2021
26,508,541-11,283,501 ÷ 29,502,810=0.5160
2022
34,206,792-13,251,629 ÷ 29,509,928= 7.1012
Types of Liquidity Ratio
1. Current Ratio or Working Capital Ratio
Current assets\ Current liabilities
2020
22,957,738÷19,757,352=1.16
2021
26,508,541÷29,502,810=8.99
2022
34,206,792÷29,509,928=1.15
2. Quick Ratio also known as Acid Test Ratio
Current assets-Inventory ÷ Current liabilities
2020
22,957,738-8,125,166÷ 19,757,352=0.75
2021
26,508,541-11,283,501 ÷ 29,502,810=0.51
2022
34,206,792-13,251,629 ÷ 29,509,928= 0.71
Financial leverage ratios
Financial leverage ratios are also called "debt ratios" and measure a business's ability to meet its
long-term (one year or more) debt obligations. These obligations include the payment of interest
on the loan, the final principal payment on the loan, and any other fixed obligations such as lease
payments.
Types of Financial leverage Ratio
1. Debt-to-Assets Ratio
Total debt
Total Assets
2020
2021
2022
49
2. Debt-to-Equity (D/E) Ratio
Total debt
Shareholders’ Equity
2020
2021
2022
Profitability ratio
Profitability ratio helps to determine and evaluate the ability of a company to generate revenue
compared to its expenses and considers various elements of the balance sheet and profit and loss
account of the company to analyze the performance of the company.
Profitability Ratio = Profitability Metric ÷ Revenue
Types of Profitability Ratio
1. Gross margin
gross profit ÷ revenue
2020 1,365,752 ÷ 28,668,642=0.0476
2021 5,306,910 ÷ 37,089,359=0.1430
2022 6,541,610 ÷ 54,146,811=0.1207
2. Operating margin
Operating earning
Revenue
2020
2021
2022
3. Pretax margin
50
4. Profit margin
Profit Margin Ratio = Net Profit after tax ÷ Net sales
5. Cash flow margin
6. Return on assets (ROA)
Return on assets = Net profit after tax ÷ Total assets
2020 4,120,279 ÷ 36,997,109=0.11%
2021 640,535 ÷ 40,407,405=0.01%
2022 2,276,040 ÷ 48,452,937=0.04%
7. Return on equity (ROE)
Net profit after tax ÷ Shareholder's equity
8. Return on invested capital (ROIC)
Return on invested capital=Net profit after tax
Revenue
Efficiency Ratio
An efficiency ratio is a metric that enables business leaders to measure how well a company
utilizes its resources. Managers can use these ratios to gain insight into where they can improve
operational, asset management and other business practices.
Formula:
Efficiency Ratio= expenses ÷ revenue
Types of Efficiency Ratio
1.
Account Receivable Turnover Ratio
2. Inventory turnover Ratio
3. Total Assets to sales
51
4. Fixed Assets to Total assets
5. Working capital Ratio
Coverage Ratio
The coverage ratio is a set of financial ratios that measure a company's ability to meet its debt
service obligations. Such ratios are commonly used by lenders and creditors to analyze a
company's debt servicing capacity and financial position.
Types of Coverage Ratio
1. Interest coverage ratio
Interest coverage ratio= EBIT/Interest expenses
2. Debt services coverage ratio
DSCR=Net operating income/Total debt services
3. Assets coverage ratio
Assets coverage ratio=Total Assets-Short term Liability/Total debt
52
Horizontal Analysis
Masood Textile Mills Ltd
Profit & Loss Statement
For the year ended 30 June 2020, 2021 and 2022
Description
Revenue
Cost of Sales
Gross Profit
Distribution Cost
Administrative Expenses
Other Expenses
Other Income
Financial Cost
Profit (Loss) Before Taxation
Taxation
Profit (Loss) After Taxation
Earning (Loss) Per share Basic Rs
Diluted Rs
2022
188.9
175.3
478.9
155.8
139.3
118.3
572.2
86.7
80.2
199.4
55.2
53.9
53.1
2021
129.4
85.2
388.6
105.3
119.3
32.2
105.5
75.4
27.7
107.9
15.5
14.7
14.5
2020
100
100
100
100
100
100
100
100
100
100
100
100
100
Explanation:
In horizontal analysis we compare base year items like sales, cost of sales etc. with the next
index year and calculate the relative changes.
2020 is our base year and 2021 and 2022 are our index years in the given profit and loss account.
Sales increased to 29.4% in 2021. 2022 saw an upward trend and sales increased to 88.9%.
Masood Textile Mills Ltd
Balance Sheet
For the year ended 30 June 2020, 2021 and 2022
53