Active Apparels Intl (Pvt) Limited (A Project Of Three Stars)

Section I: INTRODUCTION
1.1

History of Textile Industry in Pakistan

Independence from the British in 1947 and the division of the Indian subcontinent into

Pakistan and India started a new era for textiles production. Pakistan consisted of two entities, east and West Pakistan. The West was the cotton producing area and the East was responsible for jute production. At the time of partition, Pakistan had no industrial base and inherited only one textile mill, the Lyallpur Cotton Mill in Lyallpur [now called Faisalabad]. This mill produced yarn and gray cloth and no printed fabrics. Under the Open General Licensing [OGL] scheme, the business community imported plants and machinery with cash dollars. In 1950, Adamjee Mills was setup in Karachi, Kohinoor in Faisalabad, Colony Textile Mills in Multan, Nishat and Crescent Textile in Faisalabad. These were followed by Gul Ahmed Textile Mills, Al-Karam, Valika, Star and Rashid textile mills. Within a decade the new country of Pakistan was self-sufficient in cotton and began exporting gray cloth and later cotton yarn. Pakistan started exporting printed fabrics in the late 1970's to Africa and by mid 80's was sending printed material to Europe. Pakistan's location was ideal, as it lay halfway between the western world and the Far East. Pakistan has a 28 percent share in world export of cotton yarn and a 6 percent share in world export of cotton cloth. It was in the 60s that the power loom took over and by the 70s gray cloth was being exported at throw away prices. There are about 200,000 power looms operating in Pakistan some of which are backyard operations. Handloom, which formed the backbone of textile goods in the last century, is now almost non-existent its sales confined to a fast diminishing rural market and a very small niche market. Although Pakistan is the world's fourth largest cotton growing nation in the world, after the United States, China, and India, its total turnover for export is only $ 5 billion. Textile goods form 60 % of the total exports of the country. The commodities exported are yarn, cloth, tents, and canvas, bags, towels, bed linen, garments, synthetic textiles and other made ups.

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With a large and expanding textile industry, textile education and training became imperative. The Textile University of Pakistan was established in Karachi to train technical and management professionals. The Textile University awards degrees in Textile Sciences and Textile Management. The National College of Arts in Lahore and the Indus Valley School of Art and Architecture in Karachi are the only two institutions in Pakistan, which award a degree in the discipline of Textile Design. Designers are being absorbed into the industry, bringing about change and vibrancy, with innovations in Print design and weaving. Today there are 450 Spinning mills and 35 composite textile mills. Textiles goods form 60 % of the total exports of Pakistan. In this century manufactured fibers are developed and modified textured yarns were created. New fabrication and increased production of knits occurred and many finishes and sophisticated textile production and marketing system were developed. These developments have been beneficial to consumers. Manufactured fibers and durable press finishes have made many items of clothing easy care. New development in textile has made many problems for consumer, particularly in the selection of apparel and furnishing textile. Many items are look alike. Knitted fabrics look like woven and vice versa, venial and polyurethane films look like leather, fur fabric look like real furs, acrylic and polyester fibers are look like wool. Only knowledge of textile will result in a more informed selection of textile product. 1.2

An overview of Textile Industry in Pakistan

Food, Shelter, and clothing are the basic needs of human beings. Among all these the

clothes is more important because it distinguishes the human from the others. The other living things such as animals and birds also struggle for food and shelter but not for clothes. The use of clothes is an old as human history. Most clothing is made from textiles, and shelter is made more comfortable and attractive by the use of textiles. In fact, some shelter is made from textile. Textiles are among the magical products of today; there versatility in an ever-changing world is truly remarkable. We are surrounded by textile from birth to death. We walk and wear textile products; we sit on fabric covered chairs; we sleep on and fabrics; textile keep us warm and protect us from sun, fire, and infections. Internship Report Page 2

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The industrial and medical use of the textiles is many and varied. The automobile industry use textiles to make tire cords, upholstery, carpeting, headliners, windows runners, seats belts, shoulder harnesses, and many other parts. Life is prolonged by replacing worn out parts of body with textile parts such as polyester arteries and velour heart valves. Medical personnel wear disposable garments. Bulletproof vests protect police, hunter, and soldiers. Safety belts make automobile travel less dangerous. Three-dimensional inflatable structures keep out desert heat and Arctic cold. Textile products are always changing. They change as fashion changes and as the needs of people changed. New development in production process also causes change in textiles, as do International standard for safety, environmental quality, and energy conservation. These changes are interdependent and contribute to the beauty, the durability, the care, and the comfort of the fabrics. The historical development, the basic concepts, and new development has developed from an art-craft industry in the early centuries, through the industrial revolution in the 18th and 19th centuries, when the emphasis was on mechanization and mass production, to the 20th century, with its emphasis on science and technology. In this century manufactured fibers are developed and modified textured yarn was created. New fabrication and increased production of knits occurred and many finishes and sophisticated textile production and marketing system were developed. These developments have been beneficial to consumers. Manufactured fibers and durable press finishes have made many items of clothing easy care. New development in textile has made many problems for consumer, particularly in the selection of apparel and furnishing textile. Many items are look alike. Knitted fabrics look like woven and vice versa, venial and polyurethane films look like leather, fur fabric look like real furs, acrylic and polyester fibers are look like wool. Only knowledge of textile will result in a more informed selection of textile product.

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Section II:COMPANY PROFILE

1.3 About Company
Active Apparels International Private Limited (A Project of Three Stars Hosiery) is one of the pioneers in garments manufacturing in Pakistan. It is situated in Lahore (industrial area). Active Apparels is totally export-based organization. Its head office has been shifted to industrial area Multan. In the beginning organization started manufacturing for local market, in addition the quality was not so good but with the passage of time company started improving its quality. A result the size of their target market started increasing day by day. In this way the company achieved the level where outside companies started contacting for orders of garments. Due to their quality and less lead-time, demand for their products very much increased. In this way they jumped from local area business to export based business. Now the quality of their products is very good, they have check and control every time. If there is any weakness they immediately remove it and improve the products. The products manufactured by Active Apparels International Private Limited (A Project of Three Stars Hosiery) have always been of high standard and the name of different international brands is synonymous with Quality all over World. This company has been acting as an institution working for the advancement and development of Textile know how in Pakistan. The Parent company (Three Stars Hosiery) has been expanding its business to fulfill the demand of the customers. The company is going to make additional units also. Currently company has outside units in Bahrain and United Arab Emirates. The company has been exporting to U.S.A. from 1963 and Europe from early 1980s. The company exports the products without any specific company brand name. Brand name of products is given according the customers specifications. In order to keep pace with growth of production, company searches for more but selected customers. For this purpose-marketing department make efforts. Organization trusts that it is in a very advantageous position to offer both present and potential customers one row facility.

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All the units in and outside the Pakistan are equipped with wide variety of reliable machines that are from JUKE, YAMATO, PEGARESS, etc. This modern equipment for fabric knitting and finishing gives an opportunity to cater to the needs of various customers. In Gulf operations champagne produces knits and woven and import fabric for woven and some special knits from Taiwan and China. Over the years company has been working with leading stores and direct importers in the U.S.A. and Europe. Company has gained good market from leading stores of above-mentioned areas. The company is an approved vendor of Nike incorporate, Gap incorporate and J.C Penny. According to the basic plan the mill had to be installed in Multan. But for the larger Benefits for the country and for the development of backward Area It was setup in the Industrial Estate in order to provide employment facilities. Three Star was the first textile mill in Industrial Estate Multan infect It is the pioneer in economic development of this area. This first step encouraged other Industries and by the passage of time several other Industrial units came in to being and this process is still in progress. Three Stars has a positive effect on the social and economical development and progress of this area. It has not only provided better opportunities for the employment for the local people but also imitated a trend of progress. So, Three Star Hosiery has proved a milestone in the development and progress of area. With the passage of time Three Stars expanded its operation to Lahore and established the factory named Active Apparels International Limited at Industrial Area of Lahore. And it becomes its Stitching and Washing unit in Lahore.

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1.4

Organization Structure

Location decision Why they have located the Active Apparels in this area? Management selected this area because it was suitable in terms of: Cheaper labor cost Expansion facility Utilities Availability of infrastructure Incentives by the govt. in the region Proximity to suppliers Low site cost

They are also satisfied because of facility of airport in Lahore. As it is said that it is totally export-based organization, so, it exports its products with the help of airplanes and ships. If they will expand their capacity, they prefer to have another plant near to this existing plant because they will have better control on their operations and the labor cost will also be lower in this area. Other thing is proximity to their suppliers is very easy and less transportation cost is consumed for the supplies. So, they will never go for the new area. The criterions for their selection of location are not very much. They just consider the factors discussed above. They dont consider the transportation cost as much important. They also have not need to measure the distances between the organization and the target markets for the location of the plant. If the capacity is to be increased, they will install a new site near this one but not reallocate it. Because they have the expansion facility within the area of industrial area due to the reasons stated above.

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Process Design In Active Apparels, the labor strength is more than 200 and even increasing day-by-day. The design capacity (highest capacity under ideal conditions) is 400 dozens a day and its effective capacity (under normal considerations considering the cost) is less than 350 dozens a day. Outputs are the choices of the product focus organization and inputs are the choices of process focus organization. As the Active Apparels is the process focus organization (i.e. low volume, high variety) so, the capacity utilized by the organization is satisfactory. It means that what is ideal production capacity; they always try to fulfill that capacity in normal conditions. So, average output and the maximum capacity are usually same with slight fluctuations due to some factors. But, this shows that they have a need to install another facility (when normal and maximum capacity is equal) because capacity is fully utilized. If the capacity is not expanded, they will lack behind incompetency from its competitors. If the normal and maximum capacity figures meet with one another and they dont establish a new plant, it shows their in-flexibility. Thats why; the management is thinking to setup another plant near the existing one. Active Apparels is a process focused, in which number of inputs is less as compared to variety of outputs through limited sources (inputs), so, machine setup is such that it offers high flexibility without change in the structure of the setup. The production rate is adjusted on the basis of: Demand On-hand inventory Season (Summer, Winter)

Production Process First Yarn is knitted into Grey Clothe. Then Grey Clothe goes into bleaching process and then it either goes to coloring or printing. Then it goes to the cutting department, where it is cut into required sizes. Then it comes into the stitching department then the inventory goes to finishing department. Here the defective items are removed and rests are packed in the packing department.

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Design of the Product The product designs made are totally dependent on the customer demand. But some of the products are made by the organization itself. But the standards of quality products are always same. The designs made by the production department workers are made through innovation and product development. For the betterment of the product designs, they also have established their training centers, in which they give training to their staff regarding designing of the products, so they become able to develop better product designs. The timing and sizing of expanding capacity is measured by the demand from their customers. They say that in near future (due to increase in customer demand), they will have a need to expand the capacity, but so far now the requirements are being fulfilled with the existing plant. They also want to make the capacity as the competitive weapon, so that they can easily fulfill the requirements in every situation. They have no need to estimate the capacity requirement, because it is customer or process-based organization, which produces the products on the customer demand. So, there is not any gap between the demand and forecast. They have a fear to increase the capacity in the following senses: Greater installation cost The quality of the product may decrease due to less inspection Output will not be a smooth one

They will have to make a proper schedule for expanding the capacity. Suppliers of the Active Apparels are fixed in the sense when they need any raw material, Machine or Store accessories they just contact only limited suppliers, from which they are buying from the beginning. And the suppliers are also bound to send the raw material, Machine or Store accessories on required time. The quality must also match with the descriptions as told to suppliers. To be and efficient cost reduction and research they have separate department for continuous improvement.

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Aggregate Planning In Active Apparels, they use the reactive policy and under it the chase policy is used. Because the demand of their inventory dependent on the orders of the customers. So, whenever they need the inventory they place the order according to the need assessed regarding that order. So, there is no need for production rate. They make use of aggressive policy in the sense that the foreign tours are made by the top executives of the company, who took the samples of their products to search new buyers and try to convince them to make contracts with them. Demand Forecasting Active Apparels produces what they take the order from their customers. As Active apparels is the process-based organization, the demand of the organization is not fluctuating one and can be predicted easily. So, in actual they have not need to determine the forecast for the periods. But certain factors also influence the demand. These are political factors (within or outside politics), quota policies, government policies of foreign trade, price fluctuations regarding the raw material or others like freight costs etc. they forecast the demand on the basis of previous data available to them and analyze that data with the help of communication with each other. They use the judgmental and time series method for their forecast, not use any specific method for demand forecast. They often make the forecast of demand of long periods not short time period. In time series method they use nave forecast method. Nave forecast method means that they increase the demand requirement in the current period, which is the difference of previous two years. Inventory management Inventory management is very important, inventory management concerns short decision about suppliers inventories, productions level, staffing pattern distribution & schedule. Types of inventories Raw material Work in process Stores & spares Furnished goods Functions of material management Page 9

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There is different type of function of material management. Supplier selection Issuing Purchase Release Inbound transportation Work force schedule

Measuring the Inventory In Active Apparels, inventory is measured on physical basis; there is not any specific method to measure the inventory. It is because they produce limited products on customer demands, not the product focus. Most of their inventory is kept as work in process and raw material because they use just in time method for reducing the inventory of final or finished products. Lot Sizing After the demand has been forecasted and inventory level has been determined, next step is to put the appropriate order of appropriate quantity at the right time. There are four main techniques for this purpose: Lot for lot Periodic order Part period balancing (PPB) Economic order quantity (EOQ)

ABC Classification ABC analysis is the classification of the inventories with respect of their dollar value. Active Apparels also considers this method in managing their inventory. A classification is for the Chemicals B classification is for the Yarn and Fabric C classification includes the packaging material

Quality Management Active Apparels says that quality is what, that the customer defines and requires in his product. Active Apparels considers the TQM very much, because the better quality only depends on these three factors. Because Active Apparels uses quality as a competitive edge, so it also Internship Report Page 10

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maintains these three things very much.

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Quality Control Quality Control of a product may be defined as in many ways: Degree of excellence achieved against given specifications is called Quality Degree of conformity to the specifications by customer is called Quality Those attributes in the product meet the customers satisfaction is consider Quality To produce as per specifications given by the customer is Quality A right product, at right price, at right time and at right place is Quality In general we can say Quality means customer satisfaction

Quality Control covers all these factors that help to ensure that the product being produced is of the desired quality. Thus control of raw material, process at all stages of manufacturing and final product by the evaluation and application of the test data is consider as quality control Objectives of quality control Following are the main objectives of Quality control. To meet the market standards. To meet the standards established by International Authorities. To meet the market established standards. To full fill customers demand. To improve quality/cost ratio i.e. to be increase in quality per cost.

Competitive Priorities of Active Apparels Customer satisfaction is most important competitive priority of Active Apparels. The ultimate corporate goals are not only to fulfill but also to exceed the quality standard set by the customers. In order to achieve the goals Active Apparels employs a well-trained staff in different areas that insure the maintenance of the quality standards.

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The competitive priorities of there are as follows. Quality Cost Time High performance Consistency in quality. Reliability

1.5

Objectives of Active Apparels

To make the quality of goods according to the customers specification To make things available to the customers in minimum possible time. To make available right products at right time. To go for modernization and innovation

The objectives of Active Apparels are

1.6

Mission Statement
:.. Quality and Service brings new relations..: Mission statement is only the quality assurance in the sense that what the customers

demand. They always try to produce those standards of quality, which are specified by their customers. They define the quality what the customers want. Quality is that which wins the hearts of customers. They think that the quality must be the true alternative of the money, which the customers spend for the particular product.

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Active Apparels Intl (Pvt) Limited (A Project Of Three Stars) 1.7 Product Line of Active Apparels
The energy , faith and devotion that we bring to this endeavors is evident in our merchandise, We wish to make no compromises upon quality & you; so we provide the highest quality fashion garments Among which the supreme supplies are : Knits: We are working on all type of Men & Ladies Tops / Active wear through our knits division, our main products are:

Crew neck Hooded Fleece Top Polo shirts Rugby shirts Henley Turtle neck

We are producing high quality embellished garments with all sorts of embroidery and printing techniques with a touch of new washing techniques in Pakistan to the famous brands like Abercrombie and Guess. Woven: All types of Woven Tops & Bottoms for Garment Division. Includes:

Pants Shirts Skirts Denim shirts Printed shirts

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Active Apparels Intl (Pvt) Limited (A Project Of Three Stars)

Home Textiles: For Home textiles our products are:

Fitted Sheets Bed Sheets Pillow Cases Kitchen Towels Dusters

After preparing these final products they are tested quality wise. If any piece is lacking behind in terms of quality i.e. removed. Suppose that one piece is having a strain, after using the chemical if strain is not removed, then that is rejected. They do not allow their final products to be used in Pakistan. After testing they press the items such as T-Shirts, trousers, etc. Then they are packed in the packing department. The final products are packed in plastic. On each product they use the trademark according to the customer requirement; they do not use their own trademark. Then it is sent to customers via shipment or by air to Karachi warehouse

1.8

Business and Management Profile

Active Apparels International Pvt. Limited Manufacturers & Exporters of readymade garments Lahore Pakistan 58-M industrial state kot Lakhpat Lahore 042-5117891 92-42-5117776 Sohail@activeapparels.com

Name of the company Nature of Business Country Address Telephone Fax Email

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Active Apparels Intl (Pvt) Limited (A Project Of Three Stars)

Management Mr. Muhammad Rashid (MD) Mr. Mansoor Rashid (DIR Marketing) Mr. Saoud Rashid (DIR) Mr. Iqbal Choudary (GM)

Major customers GAP international, American Eagle NIKE incorporate, K. mart, Old Navy Wall mart, Ames departmental Stores V.F Asia-wrangler, J.C. penny Three Star Units Stitching unit Hassan Parwana Colony Multan Stitching & Home textile Products unit Masoom Shah Road Multan. Active Apparels International Pvt. Limited Lahore. Three star hosiery Faisalabad Towel factory. Derby textile factory Sharjah.

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Active Apparels Intl (Pvt) Limited (A Project Of Three Stars) 1.9 Organogram

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1.10 Major Departments

The success of an organization is dependent on what type of management an organization is dependent on, what type of management an organization has. Active Apparels is a wellreputed organization. They have very effective and efficient management. There are five major departments and well trained employees working including top and middle level. Departments are: 1- Administration 2- Production 3- Sales & Marketing 4- Export 5-Finance All the departments have general mangers as their heads. In top level hierarchy GMs works in coordination with the board of director to meet with the long term and short term goals. These goals are set and checked at the end of each financial year.

Administration Department
This department is run and controlled by the Director Administration. He is responsible deal with government office to keep the working atmosphere satisfactory and to run the labor office according to the company policies. Jointly the Director Administration, Labor Officer, Assistant labor officer and other labor staff is responsible for organizing, directing and controlling of the department. This department deals with recruiting, compensation, integration and maintenance of human resources. The Record Clerk keeps the appointment record entry, leave and ending of employment record etc.

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Departmental Setup The Administration Department Consists of Following Sub-Departments. Labor Office Gate Office Time Office Security Office

Labor Office The labor office is under the direct control of Director Administration. There are many Senior Clerks and Record Clerks performing their duties under his guidance. The major responsibilities of Director Administration are: Appointment Promotion Increment Dismissal Educational Cases Gratuity

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Gate Office There is one Gate In charge and four men are working under him. The main purpose is to maintain the security. If any man found guilty of taking out any thing unofficially then the matter is reported to the head of the department. Time Office There is one Head of the Department and four assistants are working under him called timekeepers and their responsibilities are to take attendance of every worker or officer. They also check the person going outside and note the time. If any person is not present then the officer finds his application and passes the order for approval or disapproval. In normal conditions, the rule is that the person who is going on leaves, should submit his leave application three days before the leave, but if there is any emergency then he can also submit application on his arrival. Security Office Active apparels is maintaining a separate security office, which is headed by a security officer. Assistant Security Officer and security guards perform their services in this subdepartment. This office is responsible for the security of the company. For this purpose few security guards has been appointed at the main gate. When an outsider wants to meet with a worker or officer, after informing the concerned person visitor pass is given to that person and his name is written down in the inward register

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Production Department
In the Active Apparels the Production Department consists of the following sub-departments: Cutting Stitching Quality Control Trimming Steam Press Packaging Final Inspection

Cutting As the Active Apparels received the Furnished Fabric or Cutting panels, the first step is of cutting. This is done through computerized machines. The design specifications are feed into the machines which cuts various layers of the cloth at a time. Stitching This is one of the main processes. Stitching is done through machines which are highly sophisticated, automatic and expensive. The numbers of machines used in manufacture of single garment depend on the design of the product. Here the garment is passed through variety of machines because each machine performs only single operation. This is called chain link operations. Quality Control Internship Report Page 22

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During the chain link operations when garment passes from one machine to another its quality is checked. If it is not up to the mark the operation is repeated. If it is approved then it is transferred to the next machine.

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Trimming When the garment is complete it is in a crude form i.e. it contains free threads of the machine and of the cloth. They are removed manually. The garment is also scanned for any metal pieces (needles) which could be harmful for the customer. Steam Press After this the garment is steam pressed according to the specifications. Packaging After pressing the garment it is packed. Final Inspection When the lot is ready then it is again checked for any defects. Once approved the lot is ready to be dispatched.

Sales Department
Sales department is one of the important departments in any industry. If a unit produces best quality goods but have not competent staff then it would be difficult to sell the products. The structure of sales department is as under

C.F.O
Manager Export

Manager Local Sales

Commercial Asst

Export Asst

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Procedure: The following activities are performed in the sales department. The Manager receives the order of yarn by Tele phone, fax or email. Manager evaluates the capability to fulfill the order by consulting daily stock repot from company. Manager gives the instructions to assistant that transfer the information on sale contract slip. Before issuing contract slip, sales manager checks the selling limits of the particular party and discusses the matter with CFO if it is selling limit Sales department writes the three copies of delivery order signed by Chief Financial Officer. One copy is dispatched to the mill for issuing goods. After reading the particulars of delivery order store in charge in the factory will issue the goods. One copy of delivery order is send to the accounts department and third one is kept for record. Note:Now company only stitch garments for other companies. This is called CMT.

Marketing Department
Distribution Channels Active Apparels is using two types of distribution channels, Direct and Indirect Direct channel Active Apparels ======== Customer Indirect Channel Active Apparels ===== Middle man (Buying Agencies) ===== Customer As most, of the products of Active Apparels are sold internationally. So they use different modes of transportation to transfer the product from Active Apparels to customers country. Mostly Active Apparels exports its products through ships. There are other modes of transportation also being used.

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Trucking Cos. Shipping Cos.

The structure of this department is as under heads the Marketing department

C.F.O GM Marketing Asst Manager Marketing Typist

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Active Apparels Intl (Pvt) Limited (A Project Of Three Stars) Accounts Department
Accounting is the art or science of interpreting, measuring, and communicating the results of economic activities whether you are paying your phone bill, balancing your checkbook, preparing your income tax return or managing an international corporation, you are working with accounting. Chief Accountant makes the important financial decisions with consultation of Director and Chief executive of company. Record of all departments like import department, Export department, Purchase and sale department, are maintained here. So this department feels a burden of work. Accountant is very much busy person who gives instructions to six members of finance department and checks their work time-to-time .His many year experience has made the work easier for him. All types of tax rates, recent changes in tax policies, different codes, companies names are on his fingertips. The accounts department is responsible for the entire accounting process of the organization regarding the recording of transactions, designing the accounting policies and accounting system, preparing financial statements and computer application. If we consider a company a cell then we can say that accounts department has role of nucleus. Without accounts department there is no possibility of doing business even sight weaknesses on the part of accounts department can badly affect the performance of whole organization. Functions of the department First and important function of accounting department is recording the business transactions on vouchers. This is also called process of vouching. This is made for internal record keeping. Auditors specifically audit vouchers. Wrong vouching will lead to error in the system and ultimately create problems. From vouchers information is recorded in daybook and cashbook. As each voucher along with its invoice, DO and other necessary documents are kept in the record room so daybook is one that can give information about parties Debit and name of account Credit along with amount. In order to see accounts in condense form ledger is used. From daybook all the entries are posted in ledger. Ledger represents Debit or Credit balance of each party. So from ledger we can see amount that is to be paid to a party or the amount that is to be received and the balance at the end of the month. Internship Report Page 27

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After this all the Debit balances and Credit balances of all the parties are posted in trial balance. The trial balance must be equal at both sides. Otherwise there is any error in recording the transactions. Now trial balance becomes the source of profit and loss and balance sheet. This department also designs the accounting policies. All the work in this department is being take place on accrual basis. The Setup of department is:

Chief Accountant Accountant Asst Accountant Computer Operator Cashier Record Keeper

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Active Apparels Intl (Pvt) Limited (A Project Of Three Stars) Internal Audit Department
Audit means checking the accounts prepared by others with a view to express an opinion. An auditor is appointed to go through the accounting and other records. Internal audit is essential for big companies. It is a review of operations and records under taken within a business by specially assigned staff. The management can appoint staff to go through the business activities. The suggestions given by auditors can be applied for the business benefit. This organization has also a separate department for performing the internal audit. The audit department develops audit program before conducting an audit. This department works on continual basis. The internal auditor of the company visits the factory on weekly basis and conducts the audit according to the checklist framed by the internal audit department. The department is responsible to keeps its eyes on the implementation of management policies. This department is also responsible to inform the top management regarding the accuracy of all accounting information and their analysis

Main Functions
Following are the main functions of internal audit department: Revision of the System The internal audit department revises the system if there arises any discrepancy. Check on the System The internal audit department checks whether the revised system is being followed or not, if there arises any deviation that is reported to the management. Check on the Management Policies This department also examines whether management policies are being followed or not Proper maintenance of books of accounts The internal audit department also examines that whether books are being properly maintained as required by the Companies Ordinance 1984. Assets Safeguarding This department also safeguards the companys assets.

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Section II: Internship Experience

Responsibilities during Internship During my six weeks of internship, I performed some responsibilities in Audit, Commercial and Store of Active Apparels International Private Limited, which added to my experience and learning. All the tasks that I executed gave me a sense of responsibility. Sometimes there was too much responsibility on me, too much burden was there. At times things were slow, yet I wanted to work more because I had blurred the lines between work and fun. 2.1 Work Experience with Auditor When I joined the company, I had to work with the Auditor. It was a good experience and I assigned my first assignment. My First Assignment. My first assignment was to tale the all types of Machines working in the company with the up to date record, and made a new list of Machines. It was a tuff job to check all the Machines physically and tale the Serial Number of all Machines as there were two units in the company and about 250 numbers of Machines. It takes me three days and I made a new and final list of all Machines with the location. 2.2 Work Experience with Commercial Coordinator After this I was working with Commercial Coordinator. Following responsibilities were delegated to me during my internship: I have to check: Commercial In Commercial Out Maintain the each Commercial Party Record on MRP separately

Now I will discuss these one by one:

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Active Apparels Intl (Pvt) Limited (A Project Of Three Stars) Commercial In

Commercial In means maintain The inward accessories record of the Party The inward Finished goods record of Party

For example if party send raw material (like Thread Cons, Cutting Panels, Sample, pant Jeans male, female, kids etc) to Active Apparels, it will be examined and recorded by the Commercial Coordinator. It is called the Commercial Inward Accessories Record of the Party. On the other hand, if party sends a Sample piece or Stitched Garments or Denim for washing to the GWP department, it will also be examined and recorded by the Commercial Coordinator. It is called Commercial Inward Finished Goods Record of the Party.

Commercial Out
Commercial Out means maintain The Outward accessories record of the Party The Outward Finished goods record of Party

For example if Active Apparels send the remaining raw material (like Thread Cons, Cutting Panels, Sample, pant Jeans male, female, kids etc) to Active Apparels, it will be examined and recorded by the Commercial Coordinator. It is called the Commercial Outward Accessories Record of the Party. On the other hand, if Active Apparels sends a Sample piece or Stitched Garments or Denim after washing to the Party, it will also be examined and recorded by the Commercial Coordinator. It is called Commercial Outward Finished Goods Record of the Party.

Maintain the each Commercial Party Record on MRP Separately

The Commercial Coordinator maintains the each Party record separately, and give the unique SHEET NUMBER through the software called MRP (Material Requirement

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Planning). This sheet number may be different for one party as one is for Sample and other is for Production. I had been working with the Commercial Coordinator for two weeks and performed all the above mentioned activities. After this I started the work at Store as the Store In charge was on leave. Now I will discuss the work experienced at Store. 2.3 Work Experience at Store

MRP (Material Requirement Planning) First of all, I would like to share my experience with the user friendly software MRP (Material Requirement Planning) because all the Store Material is dependent on this software. Any thing Issued or Received by the Store is recorded by the MRP. Now I will discuss the procedure of material issued and received. Material Received:When the Store accessories or the Commercial accessories are received by the Store, IGP (Inward Gate Pass) Number is mark on the material by MRP (MRP generate IGP Number randomly and each IGP Number is different from other). There are different types of IGP i e Returnable Non Returnable

If the commercial accessories are received by the Store, it will mark Returnable IGP. On the other hand if the Store accessories are received by the Store, it will mark Non Returnable IGP. Goods Receipt Note When the IGP Number is marked, the Store generate a slip through MRP called Goods Receipt Note and give one copy to the purchaser and the other to the Accounts Department. Material Issued:-

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If any department need any type of material, accessories, stationeries Machines parts, they come to Store. If the required item is available in the Store, the Store will issue it to the required department after receiving the signature of department head. And if the required item is not available in the Store, the following procedure will takes place.

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Purchase Demand Purchase Order Gate Entry IGP Goods Receipt Note Issue Note OGP Purchase Demand Purchase Demand is created by the department that is actually needed the required item. Purchase Order After the Purchase Demand, Purchase order is made and the Purchaser will buy the required item from the market. Gate Entry After purchasing the required item, the Purchaser will take it to the factory and the Security Staff will mark the Gate Entry Number. IGP After marking the Gate Entry Number, Goods will come to the Store, and Store In charge will mark the IGP Number and place them to the specified Rack and Shelf Number. Goods Receipt Note After marking the IGP Number, the Store will issue the GRN to the Accounts Department. Issue Note Now the required Department comes to the Store and Store will issue the Goods after making the Issue Note. OGP If the Goods or finished Products will issue outside the factory, the Store will mark the OGP (Outward Gate Pass) Number.

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2.4 Problems Encountered Well I don't have to face as many problems as I will have to face when I will go on job. First few days were hard but I cannot say there was any problem. Employees there were very cooperative and they asked me to ask as many times about a thing till you are not cleared about that. They guided me on every issue and asked me as like a big brother to learn as much as you can. I am really thankful to all of them. 2.5 Internship as a Learning Process While the work I performed during this period was particularly glamorous and equally thrilling, I feel that this internship period exposed me to a lot of experiences as well as learning process. I discovered many things which I feel will be quite useful to me in future. The key learning in professional and personal areas are discussed below: Personal Learning To allowing to the opportunity to show my skills and build trust with my coworkers. That every new project teaches something new and this broadens skill set. To network with your co-workers, introduce yourself, find out what they are working on. To finish projects fast and accurately, then ask for more work. How to communicate with team members. To keep my managers informed on my progress with current tasks. Not to be scared to fail in any task. To prioritize my tasks and be careful that you do not miss deadlines, so prioritize your tasks so you do not fall behind. How to apply theory to actual working situations To gain knowledge by performing tasks, working on projects, and completing other on the job learning experiences related to a business discipline

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2.6 Impact of Experience on my Career This experience definitely affects my career positively. As, I have not been come to know about the atmosphere of any organization. This experience has told me a lot about environment of organization and behavior of different type of people. All of this edge goes to my Institute's good understanding about students future. Ideally, this internship enabled me to: Integrate and use my knowledge and skills from my business education. Working experience in real before entering into the market and such experiences not only increases job prospects but also teaches in terms of professional behavior. Develop important public administration skills which cannot be taught in the classroom. These experiences vary from working on special projects for the interning companies to learning about the human motivation process in a complex organization. Compare theoretical ideas learned in the classroom within the world of work regarding public administration experiences. Apply the technical skills learned in the classroom to real world public administrative problems. Applying theory to actual working situations and a professional working environment Gaining knowledge by performing tasks, working on projects, and completing other on the job learning experiences related to a business discipline Test a tentative career choice Networking opportunities

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2.7

Significance of the Program During my academic years of MBA (P) program, I got exposed to many terms which are

applicable in a professional career. From the beginning of my degree program I was taught about the organizational structures or the hierarchy of command etc. At Active Apparels I got a chance to experience my studious learning in relation to practical work. I can say that I benefited from the internship programme than I thought I would in a number of ways: Having a rare opportunity to use the knowledge and skills that I had acquired back at the University. Career-wise, the internship programme undoubtedly enriched my curriculum vitae (CV). Also, having gotten a chance to interact with almost all staff, I have had an insight on how to shape my career towards a humanitarian job in the near future. To conclude, I can state that my internship in Active Apparels was a rewarding experience and provided me with some new perspectives that I did not come across during my studies back at the universities. I also have to stress that my colleagues at the same department contributed greatly to making my stay there a very enjoyable one. Particularly, working together with other friends was a true pleasure and his faith in my abilities was a real source of motivation to date.

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Section III: CONCLUSION

Working at Active Apparels has provided me with an invaluable experience of how the internal matters are run and solved. I had chosen to go into this field because of the interest I have in Operations. From the whole analysis, company has growing potential. As Pakistani market is going to be liberalized, new players are entering all sectors including Garments and Apparels sector, competition is going to be very intensive and severe. To gain and sustain competitive advantage Active Apparels should change itself continuously according to local as well as international market. The company is performing well for the operational point of view. After deep analysis, I saw that product quality is up to standard because management is more quality conscious than the quantity. While other textile industries with almost the same plant and machinery is not giving the standard product.

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Section IV:

RECOMMENDATIONS

According to my knowledge the following are some suggestion, which can be helpful to the company; After making brief careful analysis of the Company, It is clear that to maintain the long-term solvency position satisfactory, Company should change the short term strategies. The Company should control its production cost effectively. The Company should focus on the Store operations as Store is the backbone of all investment. The worker of the Company should be motivated to increase production using effective incentives scheme. There must be a proper system for training of employees that the production can be increased and then wastage can be reduced. Skills and performance based performance appraisal program should be applied. Employees should be promoted on the basis of their achievement. Due to high rate of unemployment in the country person join those jobs which are against their interest and not according to their interest and not according to their calipers. So proper analysis should be done, and explore those employee which can do better what they are currently doing in the organization. Export is a major contribution in the companys profit. So the company should increase its exports. Instead of CMT, Company should focus on its merchandising department and take orders from the Direct Buyer; it will be beneficial for the company.

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Section V: REFRENCES

http://www.google.com/ http://www.starssourcing.com./ http://www.wikipedia.com/ http://www.aptma.org.pk/ http://www.brecorder.com/

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