ACKNOWLEDGEMENT

‘‘In the name of Allah most merciful and beneficent’’

“We raise in degree of rank whom so ever we pleased;
and our every pressure of knowledge is one, most
knowing”.
(Al-Quran)

we are very thankful to ALLAH Almighty who gave us the opportunity,

courage and confidence to explore more knowledge to complete this
project and for His (ALLAH) blessings that have brightened every part
of our life, and our parents whose prayers always supported us in
every task of our life. While working on this project, we were guided by
our experience, knowledge and interest in the subject ‘‘corporate
information system”. Beyond of all the material available I am very
thankful to my respected and honorable resource person “MR
NAUMAN ALI” for giving us such knowledge about the subject that
make ‘‘corporate information system ’’ a very motivating subject. This
become possible only due to his very unique style of teaching we ever
experienced during our academics life. And through his motivational
behavior we are able to complete this complex task.
Besides this we would like to thank our senior who showed their kind
concern toward the completion of this final project of “corporate
information system’’.

WAQAS BIN ILYAS

NOOR-UL-WADOOD FAZLI
RAZA AKBAR
SHAHZADA KAMRAN
 1

EXECUTIVE SUMMARY

Today is the era of Information System and it is playing a vital role in a

good organization. It helps organizations to create a competitive
advantage with a unique feature that gain attraction of customers. It
helps to reduce time and risk factor.
This project is about analysis and development strategy of Kohinoor
Textile Mills. We analyze their current IT strategy that is use in
different functional areas. Each of these functional areas plays a role at
different levels like as operational, managerial and executive levels.
We discuss the information needs of Kohinoor at these different levels.
After analysis needs of each functional area we suggest the new idea
of new IT strategy and option that are very necessary for them to
reduce time and risk factors and create a competitive advantage and
give the suggestion to implement and manage the change for the new
IT strategy.
The system which we have proposed “ERP” will satisfy the
requirements and needs of the company. It enabled all departments to
coordinate with each other (financial, marketing, production, sales and
advertisement departments, services). By using this new proposed
system Kohinoor will gain the leadership and can over come on the
threats and weaknesses. This information system will enhance the
efficiency and quality of work of Kohinoor. The executives of the
company can easily get the information to prioritize the important
projects. This information system will provide a good coordination with
suppliers and customers.
 2

Problem statement

Kohinoor is already using an information system named as K-NET.

Kohinoor use its internal network K-NET to best utilize its
manufacturing resources. For this purpose production planning
and control department directly linked with marketing
department and store department. They can only see the
information available on the links of departments and receive or
send order specification manually. They use K-NET as their
financial information system to check out expenses of each
department of the factory and then set budget for each
department. But they don’t consider projects requirements when
they make decision of budgeting. Kohinoor textile mill use its
information system to meet the internal needs and they just
improve local performance. Their suppliers and customers can
not interact with them directly.

BUSINESS PURPOSE OF THE COMPANY

Mission Statement

At Kohinoor we aim to serve the needs of our customers and

build value for our stake holders by continuing to remain an
efficient and profitable company. At the same time we hope we
are creating an environment where talented and exceptional
people want to work. We are committed to providing our
employees with opportunities for personal and professional
growth that they can find nowhere else. We are dedicated to
operating our facilities with the utmost respect for the
communities and environment in which we live and work.
 3

Brief History
Founded in the early 1950s in Pakistan, Kohinoor is a dynamic
and efficient manufacturing company. We aim to be the preferred
partner of business in all of the markets we serve by anticipating
the needs of our customers and building value for our
stakeholders.
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.
Past and present performance
When they started the business they have only spinning and
weaving project with 25,000 spindles and 600 looms. Today they
are a pioneer of the textile industry and their buyers are Levi’s,
Gap and Dockers .Kohinoor textile mills dye cloth exports account
for roughly 20% of Pakistani dye cloth exports. The Firm has been
exporting to the USA, Europe and Asian countries for many years,
and has only recently started to export to India. Last year annual
report shows the 9 month total sale is Rs4, 584,952 (in 000). And
the share price of Kohinoor textile mills is Rs30.65. the total
share holders of Kohinoor textile mill are 5,120. Kohinoor profit
 4

and loss account shows the export of the company increase day
by day.

Structure analysis
Management of Kohinoor Maple Leaf group
Kohinoor maple leaf group structure starts with the Tariq Sayeed
Saigol chairman of the Kohinoor Maple Leaf Group. After the
chairman Taufique Sayeed Saigol is the CEO Kohinoor Textiles
Mills (KTML). After CEO, Mr Usman Said Director of Finance for
the Kohinoor Maple Leaf Group than Sayeed Saigol is the Chief
Executive of Maple Leaf Cement. Sayeed Saigol is the Chief
Executive of Maple Leaf Cement, Waleed Saigol is the Managing
Director of Kohinoor Raiwind Mills, and Jahanara Saigol is the
Director for Corporate Strategy. Zamiruddin Azar has been
actively involved in various corporate activities of the Kohinoor
Maple Leaf group. As a non-executive director, he heads the
Internal Audit Committees of the group companies, after the top
level management director of the each department, Then GM of
all departments.
After the GM level than comes the middle level management of
each department. Then comes the managers of each department,
and then comes first line managers (foreman) and at the end of
the labors.

Strategic Vision
We at Kohinoor Maple Leaf group manufacture and market
different types of high quality of product according to the
 5

demanding requirement of the customer’s national and

international level. Our strategy is to be competitive in the
market through quality and efficient operation. As a responsible
member of the community, we are committed to save the
interest of all stakeholders and contribute towards the prosperity
of the country.

INFORMATION NEEDS OF THE COMPANY

Operational Needs
Employee attendance system
Kohinoor textile has used digitalized attendance system.
Employee has their own attendance card. They can used them
when they enter or exit in the factory, and their working time
automatically counted by this system. This system can help in
payroll and HRM system to evaluate the employee’s
performance.

Payroll processing
Kohinoor has a digital payroll processing system with
collaboration of union bank. Employee has a special account for
their salary and they can take their salary through ATM cards that
are issued by the organization.
Employee’s skill inventory
Kohinoor used its internal network system called K-NET to assess
their employees according to their work interest. On one side
especially first line manager directly link with employees to
evaluate the motivation and interest in work; on the other side
 6

HRM information system has a complete information on K-NET.

First line mangers directly put information to whom they want to
train and educate regarding in work into the K-NET.
Manufacturing resource utilization
Kohinoor use its internal network K-NET to best utilize its
manufacturing resources. For this purpose production planning
and control department directly linked with marketing
department and store department. They can only see the
information available on the links of departments and receive or
send order specification manually.

Pricing and sales analysis

Take an order and requirements of the customer and use the K-
NET system for pricing, forecasting, distribution of product. They
put information like order size, order processing time and per unit
cost, it will give best option of prices offered to customer.

Managerial Needs
Order processing
Marketing department place complete information of new orders
and accounts department obtain this information using K-NET to
make decision by using accounting techniques like job cost sheet
about order.

Financial forecasting
It’s very important for Kohinoor to forecast each its department
on semiannually or annually basis. They use K-NET as their
financial information system to check out expenses of each
 7

department of the factory and then set budget for each

department. But they don’t consider projects requirements when
they make decision of budgeting.

Compensation analysis
HRM department uses K-NET to keep information about every
employee of the organization regarding their benefits, salary
package current work level and job description. And use this
information when make decisions about any employee.
Inventory management
Managers can use ORACALE based K-NET system that provided
the facilities to managers to control manage and analyze the
inventory in stock, work in process and finished goods. They just
put information in the software but there is no option for other
department to update information automatically according to
their requirements.

Strategic Needs
Ratio analysis
Kohinoor accounts department use K-NET to make monthly
quarterly and annual financial reports that helps executives to
analyze how much liabilities are covered by assets. K-NET gives
only reports they calculate ratios through manual system.

Portfolio analysis
Kohinoor financial department take only reports from each
department and units of Kohinoor Textile Mills Limited and make
 8

decision on the basis of their Return on Investment. K-NET cannot

provide any option that shows any alarming situation to
executives to prioritize the projects.

Personal forecasting
Kohinoor use its K-NET for personal forecasting like recruiting,
hiring, education and training, benefits management, employees’
termination and work force planning.
Advertising and promotion planning
Kohinoor marketing department use its K-NET for their internal
use and can not help them to make decision of market research
analysis and promotional planning on the basis K-NET results.

Manufacturing resource planning

Managers produce monthly reports for strategic planning of
manufacturing through K-NET. It gives only information for their
planning; there is need of software that shows the complete
requirements and best utilization of resources of orders.

• APPENDIX 1 shows the structure functional area

needs.

ANALYSIS
Industry analysis
 9

External environment

Political environment
Political environment has a strong influence on Kohinoor textile
mills. In Pakistan no political stability, the government it self and
the laws changes day after day. Another factor Pakistan is a
Muslim country and little activity of terrorism can affect the
customer’s interest to give orders or invest in the Pakistan. The
customers feel risk in placing orders. That’s why they shift their
orders to another countries like as India, Bangladesh.

Economical factors
Due to political and economical instability, the country is
suffering in inflationary condition. This can affect the sales of the
products. The economic conditions of Pakistan have worsened
from past few years. Economical environment also influence the
Kohinoor textile mills. The increasing inflation rate can cause the
increase in per unit cost of product. That’s why other countries
have edge because stable economic policies. And they attract
customers because of low cost and same quality. Pakistan is a
developing country and unemployment is a major issue of the
country that’s why labor and material for production is costly
competitively with other countries.
Social- Culture
Social culture is changing day by day in Pakistan as well as in the
whole world. Pakistan is a developing country and Kohinoor
Textiles target market is foreign countries, the perception of
people of these countries is Pakistani’s can not adopt the health
 10

or other quality standards creates a negative impact on Pakistan

made products. Life style patterns and fashion are indirectly
effect the Kohinoor but it directly affects the brands.

Technology environment
Technology is the important part for every organization for their
competitive advantage. Kohinoor textile mills use a new
technology compare as competitors. Kohinoor reduce the cost by
using new technology and make quality products. Kohinoor
technology offer a new way to communicate with consumers e.g.
banners, Customer Relationship Management (CRM), etc.

COMPETITIVE FORCES ANALYSIS

Threats of new entrance

There is always a barrier for Kohinoor Textiles if new company
enters in the market with new technology.

Threats of substitute
There is no threat of substitute because other textile mills offer
the same products.

Bargaining power of buyers

The bargaining power of buyers is very high because there are so
many textile mills that provide the same products and services,
like sapphire, Denim jeans, Nishat choonian and Gullastan.
 11

Bargaining power of suppliers

The bargaining power of suppliers is very low because there are
so many suppliers are available in the market to take raw
material for production and other equipment.

Competitive intensity
The competitive intensity is very high because there are so many
competitors are in the market like sapphire, Denim jeans, Nashat
choonian and Gullastan.

Opportunities and Threats

Kohinoor have its own energy setup for their textile mills. Also
they provide electricity to WAPDA. Kohinoor avail the opportunity
of getting orders of Levis top brands banana republic and meet
the needs of their standers.
Kohinoor had a threat from international market like India,
Bangladesh and Srilanka. The textile industry of these countries
have a edge of low labor and material cost, and flexible
Government policies that’s why they offered low prices for the
same products.

COMPANY ANALYSIS
Strengths and Weaknesses
Kohinoor use latest technology with respect to their competitors.
And have a qualified staff. Kohinoor have strength to take big
orders from the top brands all around the world. With the
increase of their production level Kohinoor Energy can not meet
 12

the needs of Kohinoor Textile mills. They have no expert system

to make effective decision in difficult situations
Environmental factors

Organization
Suppliers Marketing Suppliers
department
Other departments
Employees

Regulatory
Social Economic Technological Competitive
Laws
Demographics Macroeconomi Changing Alternative
protecting
shifts c conditions technology forms of
competition
Technology competition
Laws affecting
Culture
Strategic Consumer
Grid Matrix impact on Components of
marketing mix
changes income customer value competition
Self regulation
Kohinoor textile mill use its information system to meet the
internal needs and they just improve local performance. Their
suppliers and customers can not interact with them directly. This
situation shows the use IT and their each functional level. But IT
has a low impact on strategic decision making

Value Chain Analysis

The value chain analysis is a systematic approach to examine the
development of competitor advantage. This chain comprises of a
series of activities that create and build value. The organization is
divided into primary activities and support activities. The value
chain analysis of Kohinoor Textile Mills is as follows.

Primary activities
 13

Inbound logistic
They purchase a raw material from different sites of the country.
The store department checks inventory level through K- Net to
determine how much raw material is required for production.
Kohinoor suppliers have no online ordering system that’s why
Kohinoor use telecommunication for placing orders. Kohinoor
textile mills have own a few number of truck. If they purchase a
raw material in huge capacity then they used the rental good
transport.

Operations
The development operations of Kohinoor are carried out in a
systematic manner. Initially the customer’s requirements are
received at Kohinoor and a contract is made with the customer
through marketing department. The production planning and
control (PPC) team makes a comprehensive plan that includes
cost & time estimation, resource allocation and risk analysis.
After the approval of this plan, the production is started
Quality assurance activities are performed before delivering the
product to the customer.

Outbound Logistics
After complete the production, finished goods are transferred to
store department or directly to the customer. Complete
information of finished goods is available at K-NET and
assessable by each department of the organization.
 14

Marketing and Sales

However, in the growing market where competition has increased
the importance of marketing has also increased. So Kohinoor
textiles market its products and take orders mostly from foreign
countries by participating in the national exhibition of these
countries. And also advertise their products through internet and
take orders.

Services
After sale services are clearly defined at the time when Kohinoor
take orders from the customers. If after sale services are decided
at that time than Kohinoor provide these services other wise
Kohinoor is not liable for any loss or damage of the product. The
customers and the agreements clear that the organization is
liable

Supporting activities
Procurement is very important at Kohinoor because customers
want product delivery at decided time, if the order is late due to
procurement than it is necessary to courier it through air that is
very costly for the organization. It must be purchased as possible
as low price with high quality. Technology is important source of
competitive advantage. Kohinoor use latest technology in the
operations of each department. They use intranet called K-NET
with in the organization and it cover all the areas of the
organization. Human resource management is one of the main
supporting activities in any organization. Human resource
 15

management system at Kohinoor is very sound and they have

complete information about their employees and have
compensation and benefit policies.

DEVELOPING THE IT STRATEGY AND OPTIONS

(Proposing system)
Kohinoor use the IT in the functional areas of Production,
Marketing, HRM, Finance and Accounts department. They use
Oracle base application called K-Net that links each department
with another. But they have some limitation with this K-Net
software.
We develop a new strategy for them by adding more value in this
existing strategy.
In Kohinoor textile mill actual work start from the marketing
department and marketing department use K-Net for their
internal use at operational level for pricing and sale analysis, if
they develop another application that is assessable by the
customers and this application shows a variety of options and
customers are able to choose the best option and place orders
according their own requirements. They just put data and analyze
their self is it beneficial for them or not with respect to other
organization. These options helps to Kohinoor for new product
development, and the web hosting that helps Kohinoor textile
mills for product location analysis and to choose their target
customers.
Behind the marketing department production planning and
control department, also require Application that helps them how
much inventory they require for production for orders and best
 16

utilization of resources that minimize the risk of time and

wastage of resources. Also guide them for cost and quality
tracking, customer’s problems and services tracking. It helps to
reduce the production time and give accurate result.
There is another area for improvement is to directly link
Production department link with store department through IT. In
the existing system they can only see the inventory in store
department. When they receive a new order then they tells more
material or inventory. If marketing production and store
department are directly links together through Application that
automatically determines how much raw material is required
when order is placed by customer and automatically check the
inventory level if it is not sufficient for production of order then
generates a report of items that are not available in the inventory
for production. It helps production department to make the
products with in the time limit.
Another functional area is Finance department. Its role is very
important when marketing department accepts the orders from
customers. Kohinoor textile mills use its K-Net only for cash
management and can not use in financial forecasting and
portfolio management at the time when they take orders. There
is gap between time of taking orders and start working. Here is
need of application just help them to determine how much capital
is required for each department for specific order from customer
and automatically manage the cash for all departments.
Specifically it helps to managers to set budget for each
department at the time when they take orders from the
 17

customers. And help full for executives which type of order is

more feasible for them or not. And which order they prefer.
Kohinoor textile mills used its K- Net at account department for
payroll processing and orders processing but they need ratio
analysis system at executive level. This application is very simple
but gives very accurate results, which are very valuables for
decision making.
The other strategy is very important for Kohinoor textile mill is
Customer Relation Management because Kohinoor have a strong
competition at national and international level. Customer relation
management is a very important for Kohinoor to create a strong
relation with their customers and also helps the marketing
department to search the new markets, customers and helpful for
new product development.
In true meaning of IT strategy for Kohinoor textile mills is that,
they need enterprise recourse planning software. It attempts
to integrate all departments and functions across Kohinoor textile
mills onto a single computer system that can serve all those
different departments particulars needs. It takes a customers
orders at marketing departments and check the information
necessary to complete the orders, (customers credits rating and
order history from the finance department, the company
inventory levels from the warehouse module, production capacity
from production planning and control department, and then the
shipping trucking schedule from the logistic module.
COMPETITIVE ANALYSIS OF THE ALTERNATIVE AND
OPTION
 18

We develop the IT strategy of Kohinoor textile mills according to

their functional areas and it is necessary for each department to
create links within departments. And the options describe in the
above section are an addition in the existing system and is very
important for the organization.
Enterprise resource planning is flexible enough that they install
some modules without buying the whole package. ERP is very
simple and efficient way to control and manage each department
comparatively implemented the information system separately in
the each department.
In ERP finance did its job, the where house did its job marketing
and production and planning department did there jobs. It started
with the customers credits rating from the finance department,
and then check product inventory level from the where house.
And examine will the customers pay on time, will they able to
ship the orders on time? These types of decision are helpful for
customer’s services representatives. Different departments see
all the information and can up date it. When one department
finishes the order, it is automatically routed via the ERP system
to the next department. Each department uses the same
software and solves the problems related to their departments.
ERP helps the marketing department to integrate customers
order information. It tells where the order lives from the time
customer’s services representative receive it until the loading
dock ships the merchandise and finance sends an invoice. It
keeps track of orders more easily and coordinate manufacturing,
inventory and shipping among many different locations at the
same time.
 19

It also boosts up manufacturing process. ERP system came with

standers methods for automating some of the steps of a
manufacturing process. By using a single integrated. Computer
systems can save time and increase productivity. It can lead to
reduce the inventories of the material used in production and it
can better plan deliveries to the customers.

Customer Relation Management

Comparatively a customer’s relation management is best way of
competitive advantage and Kohinoor has a strong competition at
national and international level. The use of Customer Relation
Management software helps to make a strong relation with
customers and their satisfaction through their feedback at
Kohinoor Textiles. It a part of enterprises resource planning that
handle the up front selling process.

STRATEGIC IMPLEMENTATION AND CONTROL

MECHANISMS (AN ACTION PLAN)
Tactical plan
Kohinoor textile mill tactical plan are implemented in its each
functional area. Tactical plans at production and operation are to
manage and control the inventory level of production, cost and
quality tracking material and resource planning at least for three
month. System used for market research and analysis, product
location analysis and promoting advertisements in these specific
locations. System use for recruiting, hiring, employee training
and benefit management according to the organizational needs.
System use for managing, controlling and auditing the
 20

customer’s credit rating and budgeting of future six months for

each department.

Operational Plans
Operational plans are managing day-to-day operations. It means
the best utilizations of manufacturing resources at production
module daily analysis of the sale and pricing at marketing
departments, managing employee skills inventory and their
attitude at work, their personal requirements, allocations and
management of cash in each departments and the payroll
processing system at accounting and finance department.

Portfolio Management
Enterprise Resource Planning software activity manages the
portfolio of the Kohinoor Textile. It is very critical situation for
Kohinoor Textile to drop a project or order in the middle stage.
ERP helps them when they make a deal with customers, it check
the customers past history and credit rating and on the other side
check; will they have production capacity to meet the needs and
the standers of the customers, and will they be able to ship the
order on time? Will the order beneficial for them or not? All this
information helps to make a decision, which project or order is
reliable and beneficial for them. When working starts ERP involve
in monitoring projects at frequent interval by making monthly
reports, and the general managers get these monthly financial
and work process report from their departments and then
 21

analyze the project status, and make a decision to prioritize their

projects to satisfy their customer needs and create a competitive
edge among the competitors.

Change Management
It is too hard to manage the change in any organization, but now
its era of information system and it is necessary for every
organization to change themselves according to the new
standers, and IT is playing an important role for competitive
advantage.
The Kohinoor Textile Mills is an old and popular organization in
the textile industry they use the latest technology and have an
educated staff. The implementation of a new information system
is not a big problem for them but they need training for their
employees for accurate use of this software.
To manage the change the training of employees who uses this
new system is must. During the implementation of this system
minimum two software engineers are necessary for each
department who guide employees for the accurate use of new
system.

Requirements for Enterprise Resource Planner

(Hardware and Software)

Hardware Requirements
 Server
 Coaxial cable
 LAN Cards
 22

 Hard discs
 Combo drives
 Hubs
 Monitors
 RAM 1GB
 UPS
 speakers
 Printers
 Scanners
 Key board
 Mouse
 Modem

Software Requirements

 Operating system (Windows XP professional 2006)

 Internet explorer 6.1 or higher
 Oracle

Budget

Cost/unit Cost
Hardware components Units
(RS.) (RS )

Server 1 25000 25000

Scanner 1 4000 4000

Monitor
LG 505G 17” 1 6000 6000

Hard disk
1 4500 4500

RAM 1 GB 1 2000 2000

Combo drive 1 2500 2500

 23

Printer
1 7000 7000
Hp LaserJet 1015
100
Coaxial cable 45/ foot 4500
feet

Keyboard 1 200 200

Mouse 1 100 100

UPS 1 5500 5500

Modem
1 1500 1500
56K

LAN card 1 1200 1200

Speakers
1 2600 2600
56K

Total RS 66,600

Software
Cost/uni Cost
Software Components Units
t RS RS
Oracle 1 3000 3000
Window XP Advance 1 3500 3500
Server
Internet Explorer 6.1 1 500 500

Total RS.70
00
 24

CONCLUSION
Kohinoor used its information system software K-Net to improve
their local performance. It just helps them to gain and maintain
information at each functional area.
Each department only sees the information of other departments
but can not integrate with others departments through K-Net
software. That’s why every month they ship their 2 or 3 orders
through air, which is very costly for them. It is because of the
time management and it increases the risk factors.
If Kohinoor textile mills use the enterprise resource planning
software, then it helps them to combine all functional are
together into a single integrated software program that runs of a
single database. So that the various departments can more easily
share information and communicate with each other. It also helps
to prioritize the project and also play a role to handle the upfront
selling process.
 25

Post mortem:
In this project of corporate information system we have learned a lot
about the needs and requirements of the corporate sector in latest
technology and competitive edge. The course was so much beneficial
for us to build our concepts in regards of corporate information system.
The project was a very nice experience for us all because it showed us
how to respond the trend of latest technology being adopted these
days in the corporate sector in Pakistan. Last and not the least, we are
updated about information system, after learning this subject and after
doing this project of Kohinoor limited.

REFRENCES
www.kmlg.com
www.lse.com
www.google.com

BOOK: information systems today

By Leonard Jessup
 26

Joseph valacich

APPENDIX 1