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Semester Project Presentation MGT 301 Production and Operation Management Aneeq Ahmed | Minaam William Mohammad Ali Hashmi | Osama Hasan ChE-01-A School of Chemical and Materials Engineering (SCME) National University of Sciences and Technology (NUST)
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Page 1: Packages - Production and Operation Management

Semester Project PresentationMGT 301 Production and Operation Management

Aneeq Ahmed | Minaam William

Mohammad Ali Hashmi | Osama Hasan

ChE-01-A

School of Chemical and Materials Engineering (SCME)

National University of Sciences and Technology (NUST)

Page 2: Packages - Production and Operation Management

The Founder

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Syed Babar AliA Chemical Engineer and an Entrepreneur

Page 3: Packages - Production and Operation Management

Packages Limited

• Established in 1956 as a joint venture between the

Ali Group of Pakistan and Akerlund and Rausing

of Sweden, Packages Limited provides premium

packaging solutions for exceptional value to

individuals and businesses.

• The only packaging facility in Pakistan offering a

complete range of packaging solutions including

offset printed cartons, shipping containers and

flexible packaging materials to individuals and

businesses world-wide.

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Page 4: Packages - Production and Operation Management

Packages Limited

• Clientele includes illustrious names such as

Unilever and Pakistan Tobacco Company, who

have been customers for over 50 years.

• Employs over 3000 people and had sales of over

US $ 100 million in 2004.

• Listed on all three stock exchanges in Pakistan, it

has has maintained a long-time credit rating of

AA.

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Page 5: Packages - Production and Operation Management

Packages Limited

• Joint ventures and business alliances with some of

the world's biggest names reflect the forward-

looking strategy of continuously improving

customer value through improvements in

productivity.

• Packages has always been at the forefront of

new developments in packaging research and

has pioneered several innovations, including the

use of wheat straw as a raw material for paper

and board manufacture.

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Page 6: Packages - Production and Operation Management

What Packages do?

MANUFACTURES AND SALES OF• Paper (Writing Paper, Machine Glazed/Special Poster

Paper, Fluting Paper, Liner For Shipping Cartons,

Corrugating Medium Paper, Wood-free Writing/Printing

Paper;)

• Paperboard (Carton Products , Corrugated Cartons)

• Packaging Materials (Packaging Films and Laminates )

• Consumer Products (Tissue Papers, Personal HygieneProducts)

• Finished and Semi-finished Inks

OFFERS• Specialized Services (Rotogravure Printing and Sleeve-

making)

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Page 7: Packages - Production and Operation Management

Mission Statement

... a market leader by providing quality products andsuperior service to our customers, while learning from their

feedback to set even higher standards for our products.

... a company that continuously enhances its superior

technological competence to provide innovativesolutions to cater to customer needs.

... a company that attracts and retains outstanding

people by creating a culture that fosters openness and

innovation, promotes individual growth, and rewardsinitiative and performance.

... a company which combines its people, technology,

management systems, and market opportunities to

achieve profitable growth while providing fair returns to itsshareholders.

... a company that endeavors to set the highest

standards in corporate ethics in serving the society. 7

Page 8: Packages - Production and Operation Management

Core Values

Smart Governance

Work Environment

Our People

Conservation

Customer Satisfaction

Ethical Behavior

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Page 9: Packages - Production and Operation Management

Corporate Structure

Paper and Board

Consumer Products

Packaging

manufactures paper and

board from a mixture of

wood, pulp and other

raw materials, and treats

effluent

takes materials

from the Paper

and Board

Division and

converts

customer ideas

into finished

products

manufactures off-

the-shelf branded

consumer products 9

Page 10: Packages - Production and Operation Management

Products

• Paper and Board

• Carton Business Unit

• Corruwal Business Unit

• Flexible Business Unit

• Consumer Products

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Paper and Board

Mill Division

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Paper and Board Unit• Production capacities exceed 100,000 tonnes per annum,

from four main paper machines of different capabilities.

• These paper machines are supported by two pulp mills

and a chemical recovery and effluent treatment plant

along with allied support services.

• Packages Limited is among the first companies in the

world to manufacture paper & paper board using a pulp

mixture of wheat straw, kahi grass, cotton linter, recycled

pulp and wood pulp.

• These environment-friendly processes use fewer chemicals,

resulting in improved strength properties and increased

stacking strength of containers.

Page 12: Packages - Production and Operation Management

PRODUCES– high gloss writing paper

– machine glazed / special poster

paper

– fluting paper

– liner for shipping cartons

– corrugating medium paper

– wood-free writing/printing paper

Paper quality and weight is determined

by the client's specific requirements and

Packages ensures this is carried out to the exact specifications provided.

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Paper

Page 13: Packages - Production and Operation Management

Manufacture several types of board. Food Board, a basic raw

material in liquid food packaging, is being manufactured

since 1979 for Tetra Pak Pakistan Limited. This material is used

in making aseptic packaging for milk, cream, oil, fruit juices

and other perishable food items. Some of our board products

are:

• liquid packaging board

• food grade board

• duplex board / chipboard

• bleached board

• tobacco board and cardboard

• liner board

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Board

Page 14: Packages - Production and Operation Management

• The Carton Business Unit's technical competence is

reflected through two modes of printing: offset (forcomplex design) and rotogravure. (for higher volumes)

• A new Lemanic rotogravure printing and inline cutting

creasing machine was also in the year 2000.

• New lines have been introduced with the addition of aRoland 700 double coater in the Offset Printing

department, a Bobst Evoline in the Cutting and Creasing

and a Bobst Media 100 in the Folding and Gluing

departments.

• The state-of-the-art Roland 700 with twin coating has

enabled Packages to introduce innovative printing with

special effect coating and gold coatings.

Carton Board Unit

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Page 15: Packages - Production and Operation Management

• Carton Business Unit production experts work closely with

pre-press and technical staff to deliver a durable,

aesthetically pleasing and technically sound package

to the customer.

• The total board consumption of the carton line is around

18 - 20 thousand tonnes per annum. Clients include:

– Food and Beverages

– Soap / Detergent

– Pharmaceuticals

– Match

– Electronics

– Shoe

– Tobacco

– Paper Cup

Carton Business Unit

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Page 16: Packages - Production and Operation Management

• TECHNICAL EXPERTISE

Our corrugated finishing division can print in up to threecolors. Customers have the flexibility to choose from

regular slotted containers (RSC), glued, RSC stitched or die

cut cartons.

• PRODUCT DEVELOPMENT

After customer feedback and extensive research,

Packages has developed special liner and fluting that

gives extra strength to containers, in particular increasing

their stacking strength and their resistance to bursting.

Corruwal Business Unit

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Page 17: Packages - Production and Operation Management

• Packages has been manufacturing corrugated cartons

since 1974. Produced in a variety of sizes, these cartons

are of great value for in-country goods distribution and

export. Capacity increase and product development

continue to be of high priority.

• Corrugated cartons are of great value to our diverse

portfolio of customers for secure transportation of their

products to local and international markets. With the

commissioning of our corrugated plant in Karachi, we

have the capability of producing seven millioncorrugated cartons to cater to the ever-increasing

demand of high quality shipping cartons.

– Textile

– Food

– Tobacco

– Soap

– Detergent17

Corruwal Business Unit

Page 18: Packages - Production and Operation Management

• With improved barrier properties and lower cost

compared to rigid packaging, flexible packaging is

steadily gaining importance in the packaging industry.Our flexible line makes high quality packaging films and

laminates, and offers other specialized services such as

rotogravure printing and sleeve-making.

• Flexible packaging combines different plastic films,aluminum foil and paper to produce laminates of two or

more layers for providing layered protection against

moisture, gases and odours. Used where colorful

package design and preserving product quality areimportant, such as in the food and pharmaceutical

industries, flexographic printing offers economy with

quality.

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Flexible Business Unit

Soap

Tobacco

Tea

Food

Diary

Ice-Cream

Milk powder

Confectionery

Shampoo

Pesticide

Pharmaceutical

Page 19: Packages - Production and Operation Management

A range of products for those annoying problems in life: our

consumer products feature great ideas for making

everyday living easier and more comfortable, both indoorsand out.

– Tissue Products

– Personal Hygiene

– Paper Products

Reflecting our core values of exceeding customer

expectations through innovation, leadership and

teamwork, the Rose Petal and Tulip brands continue to hold

over 80% of the domestic market share of the tissue papermarket in Pakistan. We also have a leading market share in

the away-from-home business: we supply custom-printed

boxes, table napkins, coasters and paper cups to

institutions such as hotels, fast food chains, restaurants,businesses and the airline industry

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Consumer Products

Page 20: Packages - Production and Operation Management

AREAS IN FOCUS– Location, Design and Layout

– Quality

– Inventory Management

– Customer Satisfaction

– Environmental Policy

Production and Operation Management

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Page 21: Packages - Production and Operation Management

Packages was established in 1956. Lahore was then

selected as the site due to three major reasons:

• Easy availability of workers

• Easy availability of raw materials

• Easy transportation all over the country

The site continued to serve the objective for more than five

decades, but due to population density in vicinity, the

paper mill has now been shifted to a rural area near Qasur.

Location, Design and Layout

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Page 22: Packages - Production and Operation Management

• Corrugating Unit has

been shifted to Korangi

Industrial Area, Karachi

to reduce the

transportation

expenses.

• The current plant site at

Shahrah-e-Roomi, was

such planned that it

continued to serve the

objective for over five

decades

• Buffer regions were left,

and buildings were

mostly ground / first

floors.

Location, Design and Layout

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Page 23: Packages - Production and Operation Management

Location, Design and Layout

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Page 24: Packages - Production and Operation Management

Location, Design and Layout

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Quality Policy

25Total Productive Maintenance Pillars at Packages Entrance

Page 26: Packages - Production and Operation Management

We at Packages Limited are committed to producing

quality products which conform to our customer

requirements and strengthen our position as a quality-

managed company.

Our pledge is to provide the market with the best quality

products at competitive prices through a customer-driven

and service-oriented, dynamic management team.

To meet this obligation, the company will continue

updating skills of its employees by training, acquisition of new technology, and regular re-evaluation of its quality

control and assurance systems.

Appropriate resources of the company will be directed

towards achieving the quality goals through employeeparticipation.

Quality Policy

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Page 27: Packages - Production and Operation Management

• Complies with the ISO 9001 standard

• 6th company in Pakistan to adopt the ISO series as itsquality standard

• Maintains 57 Quality Improvement Teams in various

departments to ensure continuous improvement focus

in the organization

• Nurture Key performance indicators (KPI) concept:

Each division in the company sets SMART (specific,

measurable, achievable, recordable and time-based)

targets for the annual improvement of its key processparameters, reviewed by the management every

quarter

• Maintain a comprehensive set of engineering tools,

rules, processes, training materials, guidelines, best

practices and other supporting documents to make

sure our products comply with every possible customer

requirement.

Quality Highlights

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Page 28: Packages - Production and Operation Management

• Quality Assurance (QA); the pro-active approach toavoid reoccurrence of problem in future.

• Quality Control (QC); the reactive approach to the

damage borne.

• Correction; Reject clients undesired objects – Expensive

• Corrective Action; Laboratory Tests, Quality Audits

• Preventive Action; QA, Planning to avoid future rejects

Maintaining Quality

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Page 29: Packages - Production and Operation Management

• Customer Satisfaction in Terms of Quality – process

inspection from raw materials to consumer

• Trainings for Management and Staff – measure of

dispersion, central tendency, standard deviations,

defect matrix, bandwidths etc

• Quality Inspections Laboratories – 6 labs, each at theend of each production cycle, certifies or declines the

product clearance to market

• Supplies Quality Assurance – verification of ‘certificate

of analysis’ by the supplier about particular order

• Quality Improvement Projects (QIPs) – quality circles

with members from QA, Inventory and Supply Chain

• Quality Conferences – Kaizen Conference (Japanese:

Continuous Improvement) monitory awards for quality

work; Productivity Conference recognition for yearly

performance

Quality Assurance Department

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Page 30: Packages - Production and Operation Management

Quality Assurance Department

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Gloss Test for Card Sheet

QA Lab at Paper

and Board Mill

Area

Page 31: Packages - Production and Operation Management

• Packages maintains her inventory under the auspices of

Supply-Chain Department

• ISO 90001 and 14001 are implemented

• FIFO (First In, First Out) is the order

• Stocks are managed through SAP (System Application

Procedure)

• Materials dealt include: raw materials, spare parts,

production supplies and general items

• A demand is generated when requisition is made by

any stake holder, followed by a computerized stock-

check leading to issue or purchase order

• Lead time is 3 – 4 months for imported materials i.e.

mostly production supplies / raw materials, 30 – 45 daysfor local items

Inventory Management

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Page 32: Packages - Production and Operation Management

• 1000 – 1500 general items are termed as store items

and re-ordered by inventory

• Corporate target is min 45 days inventory

• Materials are inspected on delivery from vendor. In

case of quality rejection, returned to local market; for

international suppliers, rebate is collected and items aresold out in local market

• In case of undesirable delay for consumption of

material and high probability of expiry, it is also

auctioned in local markets

• GIR (Good Issuance Recognition) and GRN (Goods

Receipt Note) are implemented to for timely

acknowledgement of issuance and receiving

• Inventory is kept at desired conditions of temperature

and humidity to ensure safe storage.

Inventory Management

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Page 33: Packages - Production and Operation Management

• Fork Lifter are used for movement of inventory

• Total raw materials inventory is about 1200 – 1300 millionRs.

Inventory Management

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Chemical Store

at Packages

Limited

Page 34: Packages - Production and Operation Management

SERVICE AFTER THE SALE• Customer Services Department (CSD) follows new orders

from pre-press up to final delivery to make sure product

exceeds customer expectations.

• CSD arranges development activities and providescomprehensive technical and after-sales support to

customers.

• Customer complaints are followed by proper feedback

and management reporting that is why customers are

given due attention and the essential quick response all

the time.

• To strengthen the supply chain, Vendor Managed

Inventory (VMI) facility is provided to key customers.

• Stocks are maintained and delivers on short notice

according to customer requirements.

Customer Satisfaction

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Page 35: Packages - Production and Operation Management

PRE-PRESS (ART AND DESIGN)• The department makes designs for all types

of packaging (cartons, flexible packaging

and corrugated containers).

• A team of dedicated artists first creates theartwork, which is then transferred to the

cylinder and plate-making department.

• The Art and Design department has been

completely revolutionized over the last 15

years: output from design is digitally

transferred to plates and cylinders so that

there is no loss in data.

• A unique color management system ensuresthe accuracy the designs as they will appear

on the finished product.35

Customer Satisfaction

Page 36: Packages - Production and Operation Management

RESEARCH & DEVELOPMENT• Company constantly explores and develop usage of new

fibers, films, chemicals, adhesives, coatings and resins.

• With well-equipped laboratories and research resources

at their disposal, it has been a happening place in thearea of research.

• Research and Development (R & D) department is

committed to develops new products that service

changing consumer needs, while evaluating and

improving raw materials to reduce costs and increase

efficiency.

• Laboratory simulation of papermaking operations,

chemical testing and analysis, comprehensive testing of

paperboard and its products and other research and

development facilities are provided.36

Customer Satisfaction

Page 37: Packages - Production and Operation Management

ENVIRONMENT, HEALTH AND SAFETY (EH&S) POLICY

Packages Limited through it decisions constantly tries to :

• Minimize its environmental impact, as is economically

and practically possible

• Save raw materials including energy and water, avoidwaste

• Ensure that all its present and future activities are

conducted safely, without endangering the health of its

employees, its customers and the public

Environmental Policy

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Page 38: Packages - Production and Operation Management

ENVIRONMENT, HEALTH AND SAFETY (EH&S) POLICY

• Develop plans and procedures and provide resources to

successfully implement this policy and for dealing

effectively with any emergency

• Provide environmental, health and safety training to all

employees and other relevant persons to enable themto carry out their duties safely without causing harm to

themselves, to other individuals and to environment

• Ensure that all its activities comply with national

environmental, health and safety regulations

• This policy shall be reviewed as and when required for

betterment of the same.

Environmental Policy

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Page 39: Packages - Production and Operation Management

PAPER RECYCLING

• Packages has the capability of producing 100%

recycled paper.

• Various grades of paper and board (shipping, cartons,newsprint, magazines, imported waste paper) are

collected and then shredded.

• This is fed to a huge mixer where a controlled

percentage of virgin pulp and used paper are mixed

together to produce material for recycled paper.

Environmental Policy

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Page 40: Packages - Production and Operation Management

Effluent And Waste Management

• Discharged water from the paper and board mill goes to

a septic tank where heavy, insoluble material settles

down and is constantly scooped out.

• Specialized cleaning equipment removes the residual

sludge and suspended particles. The suspended solids

are separated and treated on sludge de-watering

equipment and thickened for disposal.

Environmental Policy

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Page 41: Packages - Production and Operation Management

Effluent And Waste Management

• The introduction of the new method of using wheat straw

as a raw material was a bold step partly aimed at

reducing the chemical load of the effluent.

• An even bolder step was taken with the import of

Chemical Recovery Plant in 1997.

• Black liquor, which poses severe difficulties in the effluent

treatment system in any pulp mill, is concentrated in this

plant to 58% solids and then incinerated in a waste heat

boiler, where organic impurities are destroyed and the

steam generated is utilized for evaporating the incoming

liquor.

• The ash, containing inorganic compounds, is dissolved in

water to recover any available chemicals.

Environmental Policy

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Page 42: Packages - Production and Operation Management

WATER MANAGEMENT

• This is a recent part of the green policy adopted by

Packages. It includes reduction of the usage of water in

all stages of its processes. Better water management hasled to better utilization of water and other raw inputs.

• At 300 tonnes per tonne of pulp produced, the quantity

of water itself poses serious problems of extraction and

disposal.

• To reduce it, a dissolved air flocculation system and

special filters have been added to different streams of

reusable water and wherever possible, fresh water in

various processes has gradually been replaced with this

water.

Environmental Policy

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Page 43: Packages - Production and Operation Management

INDEPENDENT ENERGY HOUSE

• Packages is self-sufficient in its power generation

capabilities with an installed capacity of 26 MW. A local

boiler meets the company's steam demands.

Environmental Policy

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Page 44: Packages - Production and Operation Management

RESULTS

• These efforts were streamlined in 1997 through the

formation of a committee of internal experts to look

regularly into issues concerning environment, health andsafety.

• The committee is currently involved in the management

of fresh water use, effluent management, control on air

emissions, energy conservation and maintenance of

health and safety standards in the company.

• It uses guidelines provided by the National Environment

Quality Standards (NEQS) as a benchmark, even

modifying processes to conform to its objectives.

Environmental Policy

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Page 45: Packages - Production and Operation Management

RESULTS

• As a result of combined efforts, the quantity of water

used, as well as its BOD and COD has been reduced

significantly.

• Steam consumption and heat energy consumption in

2003 have both shown a reduction of over 16% each

compared to 1999. The electricity use in the same period

has gone down by an impressive 25%.

• These activities have acquired such importance for the

company that out of US$ 100 million spent on new

processes and technology in the last few years, 20%

were spent on environmental issues alone.

Environmental Policy

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Page 46: Packages - Production and Operation Management

Before we end,A very special thanks to

Mr. Muhammad AkramManager Industrial Relations

Hassan AsifManager Quality Assurance

Shahzad MurtazaIn charge Stores and Inventory Department

Saliha AkramNUST Institute of Environmental Science and Engineering (IESE)

Prof. Dr. Nawar KhanNUST College of Electrical and Mechanical Engineering (EME)

and not to be forgotten 46

Page 47: Packages - Production and Operation Management

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