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EXECUTIVE SUMMARY
Problem statement
Mission Statement
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
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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
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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
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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
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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
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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.
ANALYSIS
Industry analysis
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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
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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.
Threats of substitute
There is no threat of substitute because other textile mills offer
the same products.
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.
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
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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
Primary activities
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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.
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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
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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
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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.
Hardware Requirements
Server
Coaxial cable
LAN Cards
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Hard discs
Combo drives
Hubs
Monitors
RAM 1GB
UPS
speakers
Printers
Scanners
Key board
Mouse
Modem
Software Requirements
Budget
Cost/unit Cost
Hardware components Units
(RS.) (RS )
Monitor
LG 505G 17” 1 6000 6000
Hard disk
1 4500 4500
Printer
1 7000 7000
Hp LaserJet 1015
100
Coaxial cable 45/ foot 4500
feet
Modem
1 1500 1500
56K
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
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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.
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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
Joseph valacich
APPENDIX 1