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8/17/2019 Pom Slides for Presentation

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PRODUCTION ANDOPERATIONS MANAGEMENT


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Introduction

Leather is the second largest exportearning sector after textiles in Pakistan.

This sector is contributing around $ 874

millionLeather garments and footwear is a o!oriented sector The I"s#n Industries P%t& 'td plays a signicant role in the

economy of Pakistan and its share in GDPis 4(

http://www.businesslist.pk/company/122791/ihsan-industries-pvt-ltdhttp://www.businesslist.pk/company/122791/ihsan-industries-pvt-ltdhttp://www.businesslist.pk/company/122791/ihsan-industries-pvt-ltdhttp://www.businesslist.pk/company/122791/ihsan-industries-pvt-ltdhttp://www.businesslist.pk/company/122791/ihsan-industries-pvt-ltdhttp://www.businesslist.pk/company/122791/ihsan-industries-pvt-ltdhttp://www.businesslist.pk/company/122791/ihsan-industries-pvt-ltdhttp://www.businesslist.pk/company/122791/ihsan-industries-pvt-ltd


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Su!)sectors

*)T#nnin+,)'e#t"er -oot.e#r/)'e#t"er G#rments

4)'e#t"er Glo%es0)'e#t"er S"oe U11ers2)'e#t"er Goods


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R#tios

Export of leather was $1.22 billion in 2007-08

$959 million in 2008-09

$867 million in 2009-10.

These figures show that in the year 2009-10 exports have declined to 30 per cent

of what a!istan was exporting in the year 2007-08 which is an alar"ing

situation. Exports of 2010-11 have shown an upward trend #ut this was "ainlydue to higher prices of leather in the international "ar!et while in $uantitative

ter"s the increase was negligi#le.1.5 million ani"als were perished in 2010

floods and 95,523 ani"als were exported fro" %uly 2010 to &arch 2011.

This resulted in an acute shortage and increased prices of "utton fro" Rs270 to

Rs450 and #eef fro" Rs154 to Rs350 per !g fro" 2008-09 to 2010-11.


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Present Scen#rio

a!istan is rich in agriculture and has a large livestoc! population which plays an

i"portant role in the econo"y of a!istan #y producing around 13 million hi#es

and 47.4 million s&ins per annu". )eather industry of a!istan e"ployeesal"ost 500,000 people directly or indirectly and contri#ute 5+ in )- an#

5.4+ in oerall e/ports.


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'oc#tions o5 m#nu5#cturin+ units in P#6ist#n

(n a!istan there are "ore than 2500 tanneries reistere# reistere#

and footwear "anufacturing units running in a!istan. ver the years the

nu"#er of registered tanneries in the country has increased fro" ,29 in 1999 to

/00 in 200 and to 72, at present. These are located in Karachi, !"#eraba#,

ahore, 'ltan, Kasr, aisalaba#, )*ran(ala, %ial&ot, %ahi(al,

%hei&hpra an# -esha(ar


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Sources o5 R#. M#teri#l

1. alo

3uffalo is considered as the specialty of a!istan in 4orld #ecause

of its a"ple availa#ility in a!istan

2. :o(

The cow "aterial is considered a superior raw "aterial upon #uffalo #ecause of its fine tight and co"paratively unifor" structure.

3. )oat

(t is good for "a!ing shoe upper leathers gar"ent and goods leather.

4. %heep )eather "ade fro" sheep raw "aterials has a very good and softer

touch and is considered #est for leather gar"ents.


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;'II%


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ACCOUNTS DEPARTMENT

;cconts -a"able mone" ot? ; (n order to "aintain great relationshipswith vendors "a!ing sure that everyone gets paid on ti"e is a vital role.

The role of the accounting depart"ent includes !eeping an eye on

opportunities to save "oney for exa"ple deter"ining if there are discounts

or incentives availa#le for paying certain vendors "ore $uic!ly.

;cconts Receiable an# Reene


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PRODUCTION DEPARTEMNT

-ro#ction an# plannin.

They will set the standards and targets at each stage of the production process.

The $uantity and $uality of products co"ing off a production line will #e closely

"onitored.

-rchasin #epartment

This depart"ent will provide the "aterials co"ponents and e$uip"ent re$uired.

'n essential part of this responsi#ility is to ensure that stoc!s arrive on ti"e and

are of good $uality


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TEC3NICA' DEPARTMENT

Mechanic / Maintenance Incharge lectrician !itter Turner Plumber "elper


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3UMAN RESOURCEDEPARTMENT

Recritment an# selection


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MARETING DEPARTMENT

%ales #epartment is responsi#le for the sales and distri#ution of the products to

the different regions.

Research epartment is responsi#le for "ar!et research and testing new

products to "a!e sure that they are suita#le to #e sold.

-romotion #epartment decides on the type of pro"otion "ethod for the

products arranges advertise"ents and the advertising "edia used. istribtion #epartment transports the products to the consu"ers


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-INANCE DEPARTMENT

oo& &eepin proce#res

eeping records of the purchases and sales "ade #y a

#usiness as well as capital spending.

-reparin inal ;cconts

rofit and loss account and 3alance :heets

-roi#in manaement inormation

&anagers re$uire ongoing financial infor"ation to ena#le

the" to "a!e #etter decisions.

Raisin inance

The finance depart"ent will also #e responsi#le for the

technical details of how a #usiness raises finance e.g. through

loans and the repay"ent of interest on that finance


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Se+ments #nd Distri!ution

)ather processing- tanning and finishing =2079 units

5ootwear and footwear co"ponents =1020/ units

)eather gar"ents>gloves =020 units

)eather #ags and accessories =7?1/ units

5ur =8 units

)eather che"istry =1,7 units

)eather "achinery =0 units


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5ootwear :tores ,1@

+epart"ental :tores 11./@

:pecialty :tores 9@

:tores in :hopping &alls 10.?@

:treet &ar!ets 8@

:ports :tores ?@

thers /@


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C#1it#l #nd M#c"iner

'round 80 to 95+ of "achinery is i"ported fro"

countries li!e Ital" an# rance.

The high percentage of i"port in ter"s of "achinery is a

reflection of the insignificant "anufacturing #ase in

a!istan.

'round 5 to 10+ "achinery used #y the tannaries at

s"aal level products is locally produced. :uch "achinery

is locally !nown as ch&rm. These are s"aller in si6e

and availa#le at reasona#le prices.


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'#!or situ#tion

The Ihsan pri#ate limited pro#idesemployment to ,99:999 people ofPakistan.

$lmost 89( of the l#!or is s6illed theyha#e the re%uired expertise to operatethe machinery

$pproximately ,9( #re t"e uns6illed workers who are basically helpers theyhelp in unloading& loading and packaging.


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MA;OR PRODUCTS

Lather foot wares

Lather bags Lather garments Lather wallet


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'AT3ER -OOT


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'AT3ER =AGS

shopping bags 'i(erent type of material used for

making bags like cloth& plastic etc but allthat are not durable and can be destroy

and less elastic. )ut lather bag is #ery good and are #ery

durable so we make lather bags which

are durable and can be used for long time


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'AT3ER COATS AND ;ACETS

Leather& a material made from tanned animalhides& has been used as clothing since the

earliest days of human existence. Many manufacturing process are done for

making leather *ackets and coats and otherlather garments.

'e#elopment of high+speed sewing machinerychanged the traditional way of stitching.


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STEPS IN MASSPRODUCTION

"owe#er& the following steps are thoseused in factory mass production.

,acket designing

,acket cutting ,acket assembling Molding and pressing

!inal inspection -ontrolling


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STAGES O- 'EAT3ER-ORMATION PROCESS&


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S


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In%entor M#n#+ement

Re#l Time Tr#c6in+) This feature aids in tracking real time stock 6 salesreports. This tool minimies the prospects of the stock out in any type ofmanufacturing industry. 7ou can monitor the amount of raw 6 materials in+stockand can make fresh orders before your stock gets used.

Mo!ile Accessi!ilit) 18I Pro can be accessed on #arious mobile platformsand de#ices. If your business work makes you tra#el fre%uently& you can access

this in#entory application on your $pple iPhone or any other $ndroidmartphone. This in#entory system also runs on $pple iPads and $ndroid tablets. Multiuser Su11ort) 1oods 8rder In#entory ystem Pro can hold up to ,0 users

together on its single dashboard. This means that up to 9: people together cancontrol this in#entory system.

Cloud stor#+e) This ad#anced in#entory system o@ers u1 to 099M=s o5Cloud stor#+e to its users. $ user can utilie this storage to record important

contacts& database and in#entories without any complications. The -loud storageis protected by essential security tools. "ence& you don;t need to worry about theleakage of data onto inappropriate hands.

D#t#!#se M#n#+ement Sstem) 18I Pro is also an ad#anced free databasemanagement system. It;s useful tools help you in sa#ing an important databasein a secured way.


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C3A''ENGES -ACED =? T3E INDUSTR?

#& >u#lit 1ood %uality leather is mostly exported

and is not a#ailable for high #alue+added

Leather 1arments 6 Leather Products. Leather garments in Pakistan are made

mostly from low grade 6 medium gradeleather. Lack of proper training and

inade%uacy of skills in slaughtering areamong the most important factorsleading raw hides and skins towards

lower grades or e#en to re*ection


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Cost o5 1roduction -ost of production is also #ery high in

Pakistan as compared to our competitors

like -hina and India. The cost of #ariousinputs especially utilities and the hightaxes make our products uncompetiti#ein international markets.


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Ener+ Issues 1enerally& a leather unit consumes o#er +?.@>

M, i.e. 9>


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Documents

Pom Slides for Presentation