This research addresses the application of 5S of Housekeeping concepts to the continuous production/ process sector with a focus on the Textile industry. The goal of this research is to investigate how 5S of Housekeeping approach / method can be adapted in the Textile manufacturing environment, and to evaluate their benefits on a specific application instance. Although the processes of Textile industry have share several common characteristics, there are areas where they are very different, manufacturing settings have overlap, but at the extreme, each has its unique characteristics. This research attempts to identify how systematically Textile companies adopt the process in manufacturing and where 5S techniques are directly applicable. This approach are tested on a couple of large textile manufacturing company (Gul Ahmed , Dewan Mushtaq & Dewan Khalid ).
TABLE OF CONTENTS
1.0 INTRODUCTION...................................................................................................... 7
1.1 Aims and Objectives of the Study ........................................... 7
1.2 Limitations of the Study............................................................................
1.3 Approaches to the Study.......................................................................... 9
1.4 Methodology......................................................................... 10-12
2.0 BACKGROUND AND LITERATURE REVIEW.................... 13
2.1 The History.................................................................. 13
2.2 What Is Lean...?14-16
2.3 Manufacturing Tools and Techniques............................................. 17
2.3.1 Cellular Manufacturing.................................................. 18
2.3.2 Continuous Improvement (5S)......................................... 19-20
2.3.3 Just-In-Time.................................................. 20
220.127.116.11 Just-In-Time Production. .............................. 21-22
18.104.22.168 Just-In-Time Distribution......................................... 23-24
22.214.171.124 Just-In-Time Purchasing. .................................... 24-25
2.3.4 Production Smoothing...................................... 25
2.3.5 Standardization of Work................................. 26
2.3.6 Total Productive Maintenance.......................... 26
2.3.7 Other Waste Reduction Techniques...................... 27-28
3.0 A TAXONOMY OF THE PROCESS INDUSTRY................................. 29
3.1 A Common Misconception Groups....................................... 29-30
3.2.1 Product Characteristics........................................ 30-33
3.2.2 Material flow Characteristics......................................... 33-35
4.0 OVERVIEW OF THE INDUSTRY..................................... 36
4.1 Overview of the Textile Industry.............................. 36-37
4.2 The Present Global Scenario of Textile Industry................ 37-39
4.3 Textile Vision-2005............................................... 39-40
4.4 Effect of WTO Regime on Pakistan Economy-Textile Sector ....40-41
4.5 Trade Policy 2004-05................................................. .41-42
4.6 Challenges to Pakistan Textile Industry........................... 42-47
5.0 OVERVIEW OF THE TEXTILE COMPANIES.................................... 47
5.1 Visited Textile companies............................................ 47-56
5.1.1 Gul Ahmed Textile
5.1.2 Dewan Khalid ............................................. 52-56
5.1.3 Dewan Mushtaq ............................................ 57-59
5.2 Overview of the Textile Process....................................... 59-60
5.3 Flow of Process Diagram ................................................ 61
5.4 Summary of Processes of Processes...................................... 62
6.0 APPLICATION OF 5S OF HOUSEKEEPING ...................................... 63-64
6.1 A Brief Survey of the Textile Industry.......................................... 63-64
6.2 5S of Housekeeping......................................................65-71
6.3 Summary............................................................... 72-73
6.4 Conclusion............................................................. 74
Bibliography ................................................................................... 75
1.1 AIMS AND OBJECTIVES OF THE STUDY
1. The aims in carrying out the exercise of this research are:
a. To study the environments and process under which Pakistan Textile Industry is applying 5S of housekeeping techniques.
b. To suggest the most appropriate process of 5S of Housekeeping for Pakistan Textile Industry.
The objectives of this report are:
a. To fulfill the course requirement of "Total Quality Management" and understand the concepts and mechanisms of carrying out a research involving 5S of Housekeeping.
b. To know how existing process are carried out, analyzed, interpreted and how suggestions are made based on logic.
c. To form the basis for further development of such application of 5S of Housekeeping, implementation, management and Quality control.
1.2 LIMITATIONS OF THE STUDY
1.On account of certain reasons pertaining to the nature of the organization studied to maintain operational secrecy, time constraints and in order to restrict this report within the acceptable size, this study has been limited to the following areas of the topic:
a. The strategies and objectives of 5S of Housekeeping, where the objectives are and tactical and strategic.
b. The mechanics and implications to be considered while developing suggestion of Housekeeping.
The study looks at the process at Pakistan Textile Industry with reference to these limitations, and makes suggestions on the same.
1.3 A PPROACHES TO THE STUDY
Possible Methods of Approach
The following alternative approaches to the research are possible.
a. Study might have been made through regulating Questionnaires in the production department in the selected Textile Industries of Pakistan (Karachi).
b. Study might also have been made through interviews scheduled and thus recording the opinions of the concerned managers regarding material / work area management and Practices at Industry.
c. Another alternative would be to depend upon available secondary data on the 5S of Housekeeping prevalent at Textile Industry and the associated corporate policies.
d. A balanced combination of any of the above three
It was decided to select the approach "d" mentioned above, taking approaches "b" and "c" only, for the following reasons:
a. The topic under discussion is of a subjective nature and cannot be brought down to level with a structured questionnaire. Doing so would create a hindrance in obtaining the information needed since any misconception to the respondent while filing out the questionnaire cannot easily be pin-pointed and rectified, as officials seldom want to invest more time on discussing the questionnaire having already taken the time to fill it out.
b. Secondary data is of vital importance with regard to making inferences on past trends & performance and formulating future courses of action to achieve corporate goals. However, secondary data cannot be solely relied upon as a basis for making future suggestions for the development of an effective process of Housekeeping, since documentation and policies on paper are not always brought to practice in the true sense.
1. The purpose here is to describe the research procedure, overall research design, the sampling procedure, the data collection and analysis procedure.
2. The topic being of a subjectively strategic nature required the descriptive research to present a profile or to describe relevant aspects of a Housekeeping and that prevalent Textile Industries of Pakistan. This information is vital before considering certain corrective steps. The required historical information is available in the form of official documents. Relevant theoretical information is available from reference books, internet resources and research reports.
Formulation of Hypothesis
3. As the research is descriptive, no formal hypothesis have been formed or tested in this study.
4. A Descriptive Research can provide a sound basis for suggesting a process of Housekeeping to improve performance. It presents data in a meaningful form and thus helps to:
a.Understand the manufacturing process of Textile Industry .
b.Think Systematically about Application of 5S of Housekeeping at Textile Industry.
c.Offer ideas for developing plan and process aimed at increasing performance.
5. Time, effort and cost are certain factors which prohibit studying the entire population. Therefore a subset from the population must be drawn to make inferences about the same population.
a.Universe: The universe in this study is limited to top Textile companies of Karachi, Pakistan and personnel related to material / work place Management.
b. Sample: A Sample is a subset of the population. A sample can be used to represent the population and reflects the characteristics of the population from which it is drawn.
c. Sample Size: Three well known companies of Textile of Karachi
d. Sampling Technique: In this study Non - Probabilistic sampling was carried out; convenience sampling was resorted to on account of the restrictive nature of the organizations.
6. Since the selected research tool should reflect the purpose of the research and the resources available for it, thus 'interview' was used as the main tool.
a. Interview: Interviewing is trying to understand what people think through their speech. There are different types of interviews, often classified by the degrees of control over the interview. Using this tool puts the interviewer and the respondent in a dialogue situation and can help to focus on the process and on the overall experience of the respondent. The Interviews were conducted personally.
b. Interview Plan: The Interviews were formal, but structured where the main areas questioned about from respondents were as given.
7. The interviews were conducted between 20 Nov to 28th of November and mostly during mornings when the respondents had easy access to all relevant and required resource material such as official documents or reports.
Organization of Data
8. Developing a research procedure, sampling and fieldwork are primarily undertaken to collect the data. The data is then systematically arranged in a logical manner that will produce the desired information to make presumptions, draw conclusions and formulate recommendations that will help take decisions. The framework for systematically arranging the data was developed through the following steps:
a. The respondents were asked to respond to a set of questions or stimuli thus extracting information in accordance with a rather elaborate interview schedule.
b. Official reports and procedural forms to evaluate the past and present environments.
2.0 BACKGROUND AND LITERATURE REVIEW
2.1 The History
After World War II Japanese manufactures were faced with the dilemma of vast shortages of material, financial, and human resources. The problems that Japanese manufacturers were faced with differed from those of their Western counterparts. These conditions resulted in the birth of the "lean" manufacturing concept. Toyota Motor Company, led by its president Toyoda recognized that American automakers of that era were out-producing their Japanese counterparts; in the mid-1940's American companies were outperforming their Japanese counterparts by a factor of ten. In order to make a move toward improvement early Japanese leaders such as Toyoda Kiichiro, Shigeo Shingo, and Taiichi Ohno devised a new, disciplined, process-oriented system, which is known today as the "Toyota Production System," or "Lean Manufacturing." Taiichi Ohno, who was given the task of developing a system that would enhance productivity at Toyota is generally considered to be the primary force behind this system. Ohno drew upon some ideas from the West and particularly from Henry Ford's book "Today and tomorrow." Ford's moving assembly line of continuously flowing material formed the basis for the Toyota Production System. After some experimentation, the Toyota Production System was developed and refined between 1945 and 1970, and is still growing today all over the world. The basic underlying idea of this system is to minimize the consumption of resources that add no value to a product. In order to compete in today's fiercely competitive market, US manufacturers have come to realize that the traditional mass production concept has to be adapted to the new ideas of lean manufacturing. A study that was done at the Massachusetts Institute of Technology of the movement from mass production toward lean manufacturing, as explained in the book "The Machine That Changed the World" (Womack, Jones and Ross, 1990), awoke the US manufacturers from their sleep. The study underscored the great success of Toyota at NUMMI (New United Motor Manufacturing Inc.) and brought out the huge gap that existed between the Japanese and Western automotive industry. The ideas came to be adopted in the US because the Japanese companies developed, produced and distributed products with half or less human effort, capital investment, floor space, tools, materials, time, and overall expense (Womack et al.,1990).
2.2 What Is Lean?
The new uprising in the manufacturing goods and service sector has created great challenges for US industry. The customer driven and highly competitive market has rendered the old-fashioned managerial style an inadequate tool to cope with these challenges. These factors present a big challenge to companies to look for new tools to continue moving up the ladder in a global, competitive, growing market. While some companies continue to grow based on economic constancy, other companies struggle because of their lack of understanding of the change of customer mind-sets and cost practices. To get out of this situation and to become more profitable, many manufacturers have started to turn to lean manufacturing principles to elevate the performance of their firms. The basic ideas behind the lean manufacturing system, which have been practiced for many years in Japan, are waste elimination, cost reduction, and employee empowerment. The Japanese philosophy of doing business is totally different than the philosophy that has been long prevalent in the US. The traditional belief in the west had been that the only way to make profit is to add it to the manufacturing cost in order to come up with a desired selling price (Ohno, 1997; Monden, 1998). On the contrary, the Japanese approach believes that customers are the generator of the selling price. The more quality one builds into the product and the more service one offers, the more the price that customers will pay. The difference between the cost of the product and this price is what determines the profit (Ohno, 1997; Monden, 1998). The lean manufacturing discipline is to work in every facet of the value stream by eliminating waste in order to reduce cost, generate capital, bring in more sales, and remain competitive in a growing global market. The value stream is defined as "the specific activities within a supply chain required to design, order and provide a specific product or value" (Hines and Taylor, 2000). The term "lean" as Womack and his colleagues define it denotes a system that utilizes less, in term of all inputs, to create the same outputs as those created by a traditional mass production system, while contributing increased varieties for the end customer (Panizzolo, 1998). This business philosophy goes by different names. Agile manufacturing, just-in-time manufacturing, synchronous manufacturing, world-class manufacturing, and continuous flow are all terms that are used in parallel with lean manufacturing. So the resounding principle of lean manufacturing is to reduce cost through continuous improvement that will eventually reduce the cost of services and products, thus growing more profits. "Lean" focuses on abolishing or reducing wastes (or "muda", the Japanese word for waste) and on maximizing or fully utilizing activities that add value from the customer's perspective. From the customer's perspective, value is equivalent to anything that the customer is willing to pay for in a product or the service that follows. So the elimination of waste is the basic principle of lean manufacturing. For industrial companies, this could involve any of thefollowing (Womack et al., 1990; Ohno, 1997; Monden, 1998; Shingo, 1997; Mid-America Manufacturing Technology Center, 2000):
Material: Convert all raw materials into end products. Try to avoid excess raw materials and scrap.
Inventory: Keep constant flow to the customer and to not have idle material.
Overproduction: Produce the exact quantity that customers need, and when they need it.
Labor: Get rid of unwarranted movement of people.
Complexity: Try to solve problems the uncomplicated way rather than the complex way. Complex solutions tend to produce more waste and are harder for people to manage.
Energy: Utilize equipment and people in the most productive ways. Avoid unproductive operations and excess power utilization.
Space: Reorganize equipment, people, and workstations to get a better space arrangement.
Defects: Make every effort to eliminate defects.
Transportation: Get rid of transportation of materials and information that does not add value to the product.
Time: Avoid long setups, delays, and unexpected machine downtime.
Unnecessary Motion: Avoid excessive bending or stretching and frequently lost items.
Waste sources are all related to each other and getting rid of one source of waste can lead to either elimination of, or reduction in others. Perhaps the most significant source of waste is inventory. Work-in-process and finished parts inventory do not add value to a product and they should be eliminated or reduced. When inventory is reduced, hidden problems can appear and action can be taken immediately. There are many ways to reduce the amount of inventory, one of which is reducing production lot sizes. Reducing lot sizes however, should be followed by a setup time reduction so as to make the cost per unit constant as the famous economic order quantity formula states (Karlsson and Ahlstrom, 1996). At Toyota, Shingo developed the concept of single minute exchange of dies (SMED) to reduce set up times (Shingo, 1997); for instance, setup times in large punch presses could be reduced from hours to less than ten minutes. This has a big effect on reducing lot sizes. Another way to reduce inventory is by trying to minimize machine downtime (Shingo, 1997). This can be done by preventive maintenance. It is clear that when inventory is reduced other sources of waste are reduced too. For example, space that was used to keep inventory can be utilized for other things such as to increase facility capacity. Also, reduction in setup times as a means to reduce inventory simultaneously saves time, thus reduces time as a source of waste. Transportation time is another source of waste. Moving parts from one end of the facility to another end does not add value to the product. Thus, it is important to decrease transportation times within the manufacturing process. One way to do this is to utilize a cellular manufacturing layout to ensure a continuous flow of the product. This also helps eliminate one other source of waste, which is energy. When machines and people are grouped into cells, unproductive operations can be minimized because a group of people can be fully dedicated to that cell and this avoids excess human utilization. Another source of waste is defects and scrap materials. Total productive maintenance is one way to eliminate defects and scrap. Manufacturing parts that are fault-free from the beginning has profound consequences for productivity (Hayes and Clark, 1986).
There is no question that the elimination of waste is an essential ingredient for survival in today's manufacturing world. Companies must strive to create high-quality, and low cost products that can get to the customers in the shortest time possible. There are sets of tools that were developed at Toyota and that can be utilized to eliminate or at least reduce the sources of waste.
2.3 Lean Manufacturing Tools and Techniques
Once companies pinpoint the major sources of waste, tools such as continuous improvement, just-in-time production, production smoothing, and others will guide companies through corrective actions so as to eliminate waste. In the following sections a brief description of such tools is given.
2.3.1 Cellular Manufacturing
Cellular manufacturing is one of the cornerstones when one wants to become lean. Cellular manufacturing is a concept that increases the mix of products with the minimum waste possible. A cell consists of equipment and workstations that are arranged in an order that maintains a smooth flow of materials and components through the process. It also has assigned operators who are qualified and trained to work at that cell. Arranging people and equipment into cells has great advantage in terms of achieving lean goals. One of the advantages of cells is the one-piece flow concept, which states that each product moves through the process one unit at a time without sudden interruption, at a pace determined by the customer's need. Extending the product mix is another advantage of cellular manufacturing. When customers demand a high variety of products as well as faster delivery rates, it is important to have flexibility in the process to accommodate their needs. This flexibility can be achieved through grouping similar products into families that can be processed on the same equipment in the same sequence. This will also shorten the time required for changeover between products, which will encourage production in smaller lots. Other benefits associated with cellular manufacturing include:
Inventory (especially WIP) reduction
Reduced transport and material handling
Better space utilization
Lead time reduction
Identification of causes of defects and machine problems
Enhanced teamwork and communication
Enhanced flexibility and visibility
2.3.2 Continuous Improvement
Continuous improvement is another fundamental principle of lean manufacturing. Kaizen, which is the Japanese word for a continuous endeavor for perfection, has become popular in the west as a paramount concept behind good management. Kaizen is a systematic approach to gradual, orderly, continuous improvement. In manufacturing settings improvements can take place in many forms such as reduction of inventory, and reduction of defective parts. One of the most effective tools of continuous improvement is 5S, which is the basis for an effective lean company. 5S is a first, modular step toward serious waste reduction. 5S consists of the Japanese words Seiri (Sort), Seiton (Straighten) , Seiso (Sweep and Clean), Seiketsu (Systemize), and Shitsuke (Standardize). The underlying concept behind 5S is to look for waste and then to try to eliminate it. Waste could be in the form of scrap, defects, excess raw material, unneeded items, old broken tools, and obsolete jigs and fixtures (Monden, 1998).
The first S, Seiri, deals with moving those items that are not currently being used on a continuous basis (e.g., items that will not be used for the next month or so) away from those that are. Moving those items and tossing away needless items will make material flow smoothly, and workers move and work easily (Feld, 2000).
Seiton has to do with having the right items in the right area. Items that do not belong to a given area must not be in that area. For a given workplace area tools must be marked and arranged as belonging in that area. This will make it easier to move those items that are not labeled from that area. Arranging items in the right place will make tools, jigs, fixtures, and resources noticeable, detectable, and easy to use (Feld, 2000).
Seiso deals with cleaning and sweeping the work place methodically. The workplace should look neat and clean and ready to use for the next shift. The work place should be maintained on a regular basis (e.g., daily). All tools and items should be in the right place and nothing should be missing. A well-maintained workplace creates a healthy environment to work with (Feld, 2000).
Seiketsu is maintaining a high standard of housekeeping and workplace arrangement. A regular audit should be run and scores should be assigned for areas of responsibilities. If every area has people assigned to it then everyone has responsibility to maintain a high standard of housekeeping and cleaning (Feld, 2000).
Shitsuke is management's accountability to train people to follow housekeeping rules. Management should implement the housekeeping rules in a practiced fashion so that their people can buy into it. Management should walk the shop floor, explain what they want from people, reward those who follow and instruct those who do not (Feld, 2000).
Taken together, 5S means good housekeeping and better workplace organization. Kaizen tools such as 5S are not only a means to increase profitability of a firm but also allow companies to reveal potential strengths and capabilities that were hidden before (Hirai, 2001). Sweeny (2003) and Cox (2002) have reported good results implementing 5S. Further, benefits of implementing 5S will be described later.
Closely associated with lean manufacturing is the principle of just-in-time, since it is a
Management idea that attempts to eliminate sources of manufacturing waste by producing the right part in the right place at the right time. This addresses waste such as work-in process material, defects, and poor scheduling of parts delivered (Nahmias, 1997). Inventory and material flow systems are typically classified as either push (traditional) or pull (just-in-time) systems. Customer demand is the driving force behind both systems. However, the major difference is in how each system handles customer demand. Just-in-time is a tool that enables the internal process of a company to adapt to sudden changes in the demand pattern by producing the right product at the right time, and in the right quantities (Monden, 1998). Moreover, just-in-time is a critical tool to manage the external activities of a company such as purchasing and distribution. It can be thought of as consisting of three elements: JIT production, JIT distribution, and JIT purchasing. More details are given for each in the following sections.
126.96.36.199 Just-In-Time Production.
Lean manufacturing is about eliminating waste wherever it is. One of the most important steps in the implementation of lean manufacturing is JIT. Monden 1998) and Levy (1997) both agree that JIT production is the backbone of lean manufacturing. Just-in-time production is about not having more raw materials, work in process or products than what are required for smooth operation. JIT utilizes what is known as a "pull system". Customer demand, which is the generator of the order, sends the first signal to production. As a result, the product gets pulled out of the assembly process. The final assembly line goes to the preceding process and pulls or withdraws the necessary parts in the necessary quantity at the necessary time (Monden, 1998). The process goes on as each process pulls the needed parts from the preceding process further up stream. The whole process is coordinated through the use of a kanban system. Shipments under JIT are in small, frequent lots. A kanban is used to manage these shipments. Kanban is an information system that is used to control the number of parts to be produced in every process (Monden, 1998). The most common types of kanbans are the withdrawal kanban, which specify the quantity that the succeeding process should pull from the preceding process, and the production kanban, which specifies the quantity to be produced by the preceding process (Monden, 1998). The withdrawal kanban, which is shown in Figure 1 shows that the subsequent machining process requests the parts from the preceding forging process. The part that must be made at the forging process is the drive pinion and it can be picked up at position B-2 of the forging department. A box of type B must contain 20 units of the part needed and this kanban is the fourth out of eight sheets issued (Monden, 1998). The kanban shown in Figure 2 is a production type kanban that shows that the preceding machine SB-8 must produce a crankshaft for the type of car specified. The part produced must be stored at shelf number F26-18.
Figure 1 Withdrawal Kanban (Source: Monden, Y., Toyota Production System-An Integrated Approach to Just-in-time, 1998).
Figure 2 Production Kanban (Source: Monden, Y., Toyota Production System-An Integrated Approach to Just-in-time, 1998).
A supplier kanban is another type of kanban that is used between the supplier and the
Manufacturer under JIT. Lean manufacturing requires quick deliveries and in order to achieve this, many manufacturers require their suppliers to deliver items just in time. In order to achieve JIT delivery, suppliers have to adjust from the traditional run sizes to smaller lot sizes. The supplier kanbans circulate between the manufacturer and the supplier. The kanban is delivered at predefined times from the manufacturer to the supplier. For example, if parts were conveyed twice a day (8 a.m. and 10 p.m.), the truck driver would deliver the kanban at the supplier's store at 8 a.m. which is a signal to the supplier to produce the required quantity. At the same time the driver picks up the parts that are completed at 8 a.m. that morning along with the kanban attached to the boxes containing these parts. These are the kanbans that would have arrived the previous night at 10 p.m. signaling the production of the parts (Monden, 1998). By utilizing a kanban system under JIT, smaller lot sizes and huge inventory reductions can be achieved. Under JIT production raw material, subassemblies and finished product inventory are kept to a minimum and the lean manufacturing principles are followed to eliminate inventory as a source of waste. Another type of waste that is eliminated under JIT production is overproduction. Since every process is producing at a pace no higher than that of the subsequent process's requirements, the need to produce more than what is needed is diminished.
188.8.131.52 Just-In-Time Distribution.
JIT effectiveness depends heavily on having a strategic alliance between buyers and suppliers. By having a third-party logistics distributor, companies can focus on their core competencies and areas of expertise leaving the logistics capability to logistics companies (Simchi-Levi, D. et al., 2000; Quinn and Hilmer, 1994). Third-party logistics (3PL) refers to the use of an outside company to perform all or part of the firm's materials management and product distribution functions (Simchi-Levi, D. et al., 2000). 3PL can support just-in-time distribution (JITD) by providing on time delivery to customers or distributors, technological flexibility such as EDI and flexibility in geographical locations. (Simchi-Levi, D. et al., 2000; Raia, 1992). JITD requires the exchange of frequent, small lots of items between suppliers and customers, and must have an effective transportation management system because the transportation of inbound and outbound material can have a great effect on production when there is no buffer inventory (Spencer, Daugherty and Rogers, 1994). Under JITD having a full truckload sometimes is difficult due to the frequent delivery of smaller lots, which in turn will increase the transportation cost. However, to get over the problem Monden (1998) states that instead of having one part loading, using a mixed loading strategy makes it possible to have full truckloads and increase the number of deliveries. Another important factor that is essential to JITD is EDI. In order to have effective product deliveries between suppliers and their distributors or customers, an EDI system must be in place. In the traditional product delivery system suppliers always have to keep finished goods inventory or have to alter their production schedules to respond to demand surges. Under EDI suppliers can look at all the shipment and inventory data and adjust their production schedule accordingly (Simchi-Levi, D. et al., 2000). To stay competitive under JITD, it is very important to share information in the whole supply chain because suppliers can adjust their production schedules and narrow their delivery windows as more product data become available to them. Other benefits of EDI include cost reduction, cycle time reduction, stock out reduction, and inventory reduction.
184.108.40.206 Just-In-Time Purchasing.
Ansari and Mondarress (1986) and Gunasekaran (1999) define just-in-time purchasing (JITP) as the purchase of goods such that their delivery immediately precedes their demand, or as they are required for use. The idea of JITP runs counter to the traditional purchasing practices where materials are brought well in advance before their use. Under JITP activities such as supplier selection, product development and production lot sizing become very critical. Customer-supplier relationships are a very important part of JITP. Under JITP it is necessary to have a small number of qualified suppliers. Having quality-certified suppliers shifts the inspection function of quality and piece-by-piece count of parts to the supplier's site where the supplier must make sure that parts are defect free before they are transported to the manufacturer's plant. Another important factor of JITP is product development. Buyers must have a "Black Box" relationship with the suppliers where suppliers participate heavily in design and development. The benefits of sharing new product development and design innovation include a decrease in purchased material cost, increase in purchased material quality, a decrease in development time and cost and in manufacturing cost, and an increase in final product technology levels (Simchi-Levi, D. et al., 2000). EDI is very important under JITP. The ultimate goal of JITP is to guarantee that production is as close as possible to a continuous process from the raw material reception until the distribution of the finished goods (Gunasekaran, 1999). EDI can support JITP by reducing the transaction processing time and meeting the specialized needs of buyers by helping them to synchronize their material movement with their suppliers. Although under JITP the carrying cost of materials is increased due to frequent small lots, this cost is offset by a decrease in the cost of processing a purchase order and by the decreased inventory holding cost.
Some of the benefits of JIT are (Nahmias, 1997):
Eliminating unnecessary work-in-process, which results in reduction of inventory costs?
Since units are produced only when they are needed, quality problem can be detected early.
Since inventory is reduced, the waste of storage space will be reduced.
Preventing excess production can uncover hidden problems.
2.3.4 Production Smoothing
In a lean manufacturing system it is important to move to a higher degree of process control in order to strive to reduce waste. Another tool to accomplish this is production smoothing. Heijunka, the Japanese word for production smoothing, is where the manufacturers try to keep the production level as constant as possible from day to day (Womack et al., 1990). Heijunka is a concept adapted from the Toyota production system, where in order to decrease production cost it was necessary to build no more cars and parts than the number that could be sold. To accomplish this, the production schedule should be smooth so as to effectively produce the right quantity of parts and efficiently utilize manpower. If the production level is not constant this leads to waste (such as work-in-process inventory) at the workplace.
2.3.5 Standardization of Work
A very important principle of waste elimination is the standardization of worker actions. Standardized work basically ensures that each job is organized and is carried out in the most effective manner. No matter who is doing the job the same level of quality should be achieved.
At Toyota every worker follows the same processing steps all the time. This includes the time needed to finish a job, the order of steps to follow for each job, and the parts on hand. By doing this one ensures that line balancing is achieved, unwarranted work-in process inventory is minimized and non-value added activities are reduced. A tool that is used to standardize work is what called "takt" time is. Takt (German for rhythm or beat) time refers to how often a part should be produced in a product family based on the actual customer demand. The target is to produce at a pace not higher than the takt time (Mid-America Manufacturing Technology Center press release, 2000). Takt time is calculated based on the following formula (Feld, 2000):
2.3.6 Total Productive Maintenance.
Machine breakdown is one of the most important issues that concern the people on the shop floor. The reliability of the equipment on the shop floor is very important since if one machine breaks down the entire production line could go down. An important tool that is necessary to account for sudden machine breakdowns is total productive maintenance. In almost any lean environment setting a total productive maintenance program is very important. There are three main components of a total productive maintenance program: preventive maintenance, corrective maintenance, and maintenance prevention. Preventive maintenance has to do with regular planned maintenance on all equipment rather than random check ups. Workers have to carry out regular equipment maintenance to detect any anomalies as they occur. By doing so sudden machines breakdown can be prevented, which leads to improvement in the throughput of each machine (Feld, 2000).
Corrective maintenance deals with decisions such as whether to fix or buy new equipment. If a machine is always down and its components are always breaking down then it is better to replace those parts with newer ones. As a result the machine will last longer and its uptime will be higher. Maintenance prevention has to do with buying the right machine. If a machine is hard to maintain (e.g., hard to lubricate or bolts are hard to tighten) then workers will be reluctant to maintain the machine on a regular basis, which will result in a huge amount of lost money invested in that machine. Researchers including Nicholls (1994), Taylor (1996), Suehiro (1992), Ljungberg (1998), Nakajima (1989) and others have reported good results implementing TPM. Further, benefits of implementing TPM will be described later.
2.3.7 Other Waste Reduction Techniques
Some of the other waste reductions tools include zero defects, setup reduction, and line balancing. The goal of zero defects is to ensure that products are fault-free all the way, through continuous improvement of the manufacturing process (Karlsson et al., 1996). Human beings almost invariably will make errors. When errors are made and are not caught then defective parts will appear at the end of the process. However, if the errors can be prevented before they happen then defective parts can be avoided. One of the tools that the zero-defect principle uses is pokayoke. Poka-yoke, which was developed by Shingo, is an autonomous defect control system that is put on a machine that inspects all parts to make sure that there are zero defects. The goal of poka-yoke is to observe the defective parts at the source, detect the cause of the defect, and to avoid moving the defective part to the next workstation (Feld, 2000). Ohno at Toyota developed SMED in 1950. Ohno's idea was to develop a system that could exchange dies in a more speedy
way. By the late 1950's Ohno was able to reduce the time that was required to change dies from a day to three minutes (Womack et al, 1990). The basic idea of SMED is to reduce the set up time on a machine. There are two types of setups: internal and external. Internal setup activities are those that can be carried out only while the machine is stopped while external setup activities are those that can be done while the machine is running. The idea is to move as many activities as possible from internal to external (Feld, 2000). After all activities are identified then the next step is to try to simplify these activities (e.g., standardize setup, use fewer bolts). By reducing the setup time many benefits can be realized. First, die-change specialists are not needed. Inventory can be reduced by producing small batches and more variety of product mix can be run. Line balancing is considered a great weapon against waste, especially the wasted time of workers. The idea is to make every workstation produce the right volume of work that is sent to upstream workstations without any stoppage (Mid-America Manufacturing Technology Center press release, 2000). This will guarantee that each workstation is working in a synchronized manner, neither faster nor slower than other workstations.
3.0 A CLASSIFICATION OF THE PROCESS INDUSTRY
3.1 A Common Misconception
Process industries have normally been lumped together on the basis of the fact that they are designed to produce nondiscrete products. As a result, people have often ignored the distinct characteristics of the different types of process industries. While the process sector as a whole shares much in common, there are unique characteristics that are product specific. Defining the entire process industry solely based on the fact that it produces nondiscrete material displays a simplistic understanding of this sector. Discrete materials are those that can preserve their solid form with or without being put in a container or being packaged. On the other hand, nondiscrete materials can often expand, evaporate, or dry out if they are not put into a container, including materials like liquids, pulps, gases, and powders. While almost all process industries use nondiscrete materials, many of them also use discrete materials. Prior taxonomies have used process manufacturing and process flow production in parallel to describe the process industry when in fact these two expressions mean different things. Process manufacturing is defined as "production that adds value by mixing, separating, forming, and/or performing chemical reactions. It may be done in either batch or continuous mode" (Cox and Blackstone, 1998). On the other hand, process flow production is defined as: "A production approach with minimal interruption in the actual processing in any one production run or between runs of similar products. Queue time is virtually eliminated by integrating the movement of the product into the actual operation of the resource performing the work" (Cox and Blackstone, 1998). Thus process industries all use process manufacturing; however, not all of them neccessarly utilize process flow production techniques.
3.2 Process Industry Groups
Process industries have typically been classified into different industry sets. Each industry set is further classified on the basis of different products specific to that industry. Table 1 lists some different process industry sets and their products.
3.2.1 Product Characteristics
The product characteristic dimension in the process industry can be described primarily on the basis of two metrics: raw materials and product volume. The process industry has always been tagged with the label of producing high-volume products. However, it is important to note that this is not necessarily true and that product volume often depends on the specific industry within the process sector. Raw materials are those items that are used as inputs that are converted by manufacturing processes into finished products. Almost all the process industries obtain their primary raw materials from mining, agricultural, or other process industries. Usually these raw materials vary in terms of their quality and this variability often determines the product that will be produced. Examples include the amount of carbon in the coke used to make steel, or crude oil from different oil fields that have different sulfur content (Taylor, Seward, and Bolander, 1981). This variation is always found in all the process industries due to the inherent characteristics of the raw materials. There are also differences in the variety of raw materials used in process industries. In other words, products can be produced from a small or large variety of raw materials. For example, in feed blending the process requires a large number of different raw materials to be used in the blending operations. Another example of a process industry that requires a large number of raw materials is the paint industry, where a wide range of raw materials (including pigments, synthetics, solvents, drying oils, plasticizers, and driers) are used to produce different types and colors of paints. In the food industry the raw materials used also have a limited shelf life so for example, it might be very critical to have a constant flow of fresh fruits and vegetables on a daily basis. On the other hand, there are segments in the process industry that use a relatively low variety of raw materials as inputs. For example, in the steel industry iron ore, coke and limestone are mixed together to form molten steel. In the beverages industries a relatively small number of raw materials are used; in the making of soft drinks, water (the main raw material for soft drinks), artificial flavor, and sugar are mixed together. Process industries can have different classifications in terms of the variety of raw materials used as input. Figure 5 shows such a classification. It should be noted that this is a general classification, and that within each product set there might be individual products at the low and high side of the spectrum. For example, in the food industry, some products such as meat processing require only meat as the main raw material, whereas ice cream requires raw materials such as milk products, flavors, sweeteners, stabilizers, emulsifiers, and other ingredients such as fruit and nuts (Shreve and Brink, 1977).
The second product characteristic by which the process industries can be contrasted is product volume. Product volume refers to the amount of output (finished products) that a process produces. These again differ from one process industry to the other. For example, in the pharmaceutical industry, some drugs might be produced in small quantities for very specific market segments, so that the quantity of the final product is comparatively small. On the other hand, the production of beverages or breweries tends to be in high volumes to satisfy the higher market demand. In some process industries the product volume can go on any side of the spectrum depending on the product made. For example, in the dyes industry some of the intermediates, which are a source of raw materials that go into making dyes are made in large quantities, whereas others such as aniline and phenol are produced in short cycles for the medicinal field (Shreve and Brink, 1977). Figure 6 shows a general classification based on product volume.
From the above description with regard to the product characteristics one can see that industries with low variety of raw materials and high product volume are inherently more efficient than other and in such cases some lean tools may not be needed or even feasible. Thus the beverage industry, which is characterized as high volume and low variety of raw material has continuous flow of product, which does not require many stops between workstation because of the high volume, which makes it by nature to have continuous flow. This rules out the use of kanban or small batches. Also, the raw material variety is low which means relatively less changeover between products and relative ease in maintaining high levels of quality and consistency. However, in order to maintain this high quality, tools such as TQM and kaizen are needed. Conversely, paint or specialty chemicals with their high variety of raw materials and low to medium volumes might be suited for some lean tools that are not needed in the former. For example, setup reduction is a good lean tool to develop in these industries in order to expedite the switchover from one product to another.
3.2.2 Material flow Characteristics
Material flow characteristics are those that have to do with the production plant environment. The process industries have typically been tagged as being a flow shop type environment where the manufacturing unit travels in continuous flow fashion through highly automated and specialized equipment with few routings and minimal interruption. In fact, process industries (like the discrete ones) have their own material flow systems. Material flow systems are typically distinguished into three different classes: job shop, batch shop, and flow shop (continuous process). Each of these systems has its own characteristics in term of equipment and flexibility. Different process industries can be grouped into some point in the continuum of these systems based on equipment arrangement and flexibility. Equipment in any industry can be classified as general purpose or specialized, and these two may in turn be further classified as dedicated or non-dedicated. Dedicated general-purpose equipment might be used to produce different products but their use is restricted to a specific operation for one or limited number of products (Cox and Blackstone, 1998). For example, in the paint industry some of the equipment used is general purpose but considered dedicated, where dedication is basically for different color groups. In the organic chemical industry, general purpose equipment might be dedicated to certain products that may be chemically different but share certain operations. Non-dedicated, general-purpose equipment is used to produce different products, with equipment use not limited to any particular type of products. For example, in the resins industry the equipment is normally general purpose with other chemical plants using the same or similar equipment to manufacture other products, and the equipment is non-dedicated with different products (different types of plastics) being able to use the same equipment. Another process industry that uses non-dedicated, general-purpose equipment is the food industry. For example, in the baking industry general-purpose equipment such as ovens and freezers are used and they are non dedicated because many different products can share them. The second type of equipment used in the process industry is the specialized variety. These in turn could be dedicated or non-dedicated. For example, in the pharmaceutical industry, and particularly in making tablets, some of the equipment used is dedicated and specialized. It is dedicated to certain products, and specialized since it is designed only for making tablets in the pharmaceutical industry (Dennis, 1993). On the other hand, the beverage industry uses nondedicated but specialized equipment. The equipment (e.g., tank) is considered to be specialized since it is designed specifically to produce carbonated beverages and it is not dedicated because any type of flavor can be made in any tank (Dennis, 1993). This is a general classification of the type of equipment used in the process industry. It must be thus noted that in the process industry a plant might use both general purpose and specialized equipment, and these in turn can be dedicated or non-dedicated. As an example, in the pharmaceutical industry some of the equipment used for producing mouthwash is general purpose (with other industries using the same equipment for other products), while some of the equipment is specialized only to make specific mouthwash products (Dennis, 1993). The type of equipment and the facility layout dictate the flexibility inherent in the manufacturing system. This in turn determines the extent to which lean principles can be adapted. In general dedicated specialized, equipment provide the least amount of flexibility, while non-dedicated, general purpose equipment allows for the most. There are process industries that have minimal flexibility in their manufacturing system. For example, in the pharmaceutical industry the arrangement of the equipment does not allow for much flexibility in the system. The manufacturing system is continuous with respect to the manner in which the equipment is arranged in a sequence in accordance with the manufacturing steps involved in producing the products. The product follows one route and there is no interruption in the flow. The production of beverages is another example of a continuous manufacturing system with no flexibility. The mixers (tanks) are arranged in accordance with the sequence of operation. The product follows one route by going through mixing and filtering operations (Dennis, 1993). However, the production of extruded plastic, which is used in the automotive industry, toys, house wares, and cassettes, the manufacturing system, is considered a batch system. Even though the series of equipment is connected together by pipelines, the products are produced in lots and there are some decoupling inventories (Dennis, 1993). All the same, flexibility is still rather low due to the fact that the number of parallel machines to produce a product is small. On the other hand, other systems are more flexible. The production of ice cream, which is considered partly continuous and partly batch is a process with a moderate amount of flexibility. Part of the equipment is arranged in the operational sequence while others are arranged in a functional layout. The mixing and homogenizing of the ice cream is continuous with no flexibility, while the fruit vats and fruit fillers are flexible due to the large number of parallel equipment. The product can travel through different routes after mixing. There are also examples in the process industries of systems that display high flexibility. For example, in specialty chemicals and particularly in the production of organic dyes, the manufacturing system is considered to be a job shop type system. The equipment is arranged in a functional layout fashion and production is in lots. The product variety is high (dyes are used in food, drug, and cosmetics) and there is a requirement for high equipment flexibility and many routing alternatives. Another example of a process industry that has a high degree of flexibility is the paint industry. In the paint industry a large number of customized products are produced in lots. High flexibility exists due to parallel functional equipment and many routing options. In Figure 7 we present a general classification of process industries with respect to equipment arrangement and flexibility and resulting materials flow.
4.0 OVERVIEW OF THE TEXTILE INDUSTRY
4.1 Overview of the Textile Industry.
Textiles are one of the most widely used materials in our everyday lives, and have been for thousands of years. They have been most commonly used for clothing, but also now have widespread applicability in home furnishings for floor coverings (carpets in particular) and furniture (in mattresses, seats, curtains, etc.) as well as in materials such as sheets, blankets, duvets etc. Textiles are also widely used for such industrial products as filters for air conditioners, conveyor belts, fire hoses, cleaning material etc.
The generic term textiles, (from Latin texere, "to weave") originally applied to woven fabrics, but is now also applied to natural and synthetic filaments, yarns, and threads as well as to the woven, knitted, felted, tufted, braided, bonded, knotted, and embroidered fabrics made from them. It also now encompasses nonwoven fabrics produced by mechanically or chemically bonding fibres1.
Fibres are the raw materials for fabrics, many of which come from renewable sources such as plants and animals. Historically, these natural fibres were used to make cloths. Fibres are now also produced by chemical and technical means -- today these manufactured fibres account for almost 70% of the processes fibres in the USA2. Plants provide more textile fibres than animals or minerals. These include cotton (the most commonly used textile fibre), which accounts for about 35% of the materials processed in textile mills and is made from fibres from small trees and shrubs. Linen is another and is made from flax. Fibres are also manufactured from wood pulp. Wool is made from fibres from animals such as sheep, goats, camels etc. and silk, which is extremely valuable, is made from fibre produced as a cocoon covering by the silkworm.
Synthetic fibres are manufactured mainly from petrochemicals, such as oil and coal and include nylon, polyester, acrylic and olefin. Nylon, a strong, elastic, light and resilient material is used widely in hosiery, for track suits, shorts, swimwear, active wear, windbreakers, bedspreads, draperies, umbrellas etc. Polyester is used, either alone or combined with cotton, to make most forms of clothing like shirts, running shorts, track suits, windbreakers, and lingerie. It can also be made into curtains and draperies.
4.2 The Present Global Scenario of Textile Industry
The global textile and clothing trade is US $353 billion and its share in global trade is 6%. Total world textile trade is US $152 billion and clothing trade is US $201 billion. Pakistan has 1% share in global textile and clothing trade. The demand for textiles in the world is around $18 trillion, which is likely to be increased by 6.5% in 2005. China is the leading Textile exporter of the world's total exports of US$ 400 billion in 2004. Country wise major market shares of the textile exporting countries are: China: $ 55 billion, Hong Kong: $ 38 billion, Korea: $ 35 billion, Taiwan: $ 16 billion, Indonesia: $ 9 billion.
Country Wise Cotton Production Breakup (Volume) 2002
Though Pakistan has emerged as one of the major cotton textile product suppliers in the world market with a share of world yarn trade of about 30% and cotton fabric about 8%, having total export of $ 7.4 billion, which accounts for only 1.2% of the over all share. Out of this Cotton, fabric is 0.02%, Made-ups are 0.18%, and Garments is 0.15%.
This is mainly due to the laxity towards the promotion of value added sector. Pakistan should learn a lesson from Bangladesh, which, by importing yarn and fabrics from Pakistan and other countries, has increased the export volume of Textiles makeup. If we desire to achieve the target of Textile Exports as envisaged in Textile Vision 2005, we will have to promote Value added sector in Textiles.
Per Capita Consumption in Textiles
Textile products are a basic human requirement next to food. This industrial sector in Pakistan has been playing a pivotal role in the national economy. Its share in the economy, in terms of Gross Domestic Product (GDP), exports, employment, foreign exchange earnings, investment and contribution to the value added industry; make it the single largest determinant of the growth in manufacturing sector. Textile share of over all manufacturing activity is 46%, export earning is 68%, and value addition is 9% of GDP and as a provider of employment to more then 1.4 million individuals, constituting around 38% of the employment of manufacturing sector of Pakistan.In spite of the government's efforts to diversify exports as well as industrial base, the textile sector remains the backbone of industrial activity in the country.
In the year of 2000-01 the growth in quantity exported in textile sector was far more impressive. The registered growth ranged from 2.8 per cent (knitwear) to 38.2 per cent (synthetic textiles). But Pakistan's textile sector due to its unstable condition and performance is continuously in danger of losing its share in the world export and the country's GDP. Especially, the post quota period will prove as a real test of performance of the textile industry.
4.3 Textile Vision-2005
Textile Vision-2005 has been directed towards an open, market-driven, innovative, and dynamic textile sector, which is internationally integrated, globally competitive, and fully equipped to exploit the opportunities created by the Multi-Fibre Arrangement (MFA). Since 1974, the MFA has governed World trade in textiles and garments. This provided the basis on which industrialized countries have been able to restrict imports from developing countries. Every year countries agree quotas - the quantities of specified items that can be traded between them. The exporting country then allocates licenses to firms to export a certain proportion of each quota.
Pakistan, at present, holds 3rd position in textile exports in Asia. Pakistan can achieve the better position in Asia in the textile exports as has been targeted in the Textile Vision-2005.
The Future of Textile Exports
After nearly four decades of derogation in General Agreement on Tariffs and Trade (GATT) and imposition of quotas, multilaterally and voluntarily, the trade in textiles will be integrated into GATT on January 1, 2005. This means there will be no quota restraints on textile products, except possibly in some categories for China's exports to the USA and EU as a result of China's terms of accession to the WTO. In the WTO regime, the major share of textile trade will go to the Newly Industrialized Countries (NIC) like South Korea, Taiwan, Hong Kong, and Singapore. Further more the next beneficiaries will be middle-income groups like Brazil, Argentina, Indonesia, Thailand, Malaysia, and the Philippines. Among the developing countries, Pakistan and the rest of the countries will enjoy very little benefit. With its entry in the WTO, China, too, is all set to give a very tough competition to Pakistan's textile marketing in the European Union (EU) and North America. Therefore, at stake is more than $ 4 billion annual export trade of Pakistan in the US and the European countries that is now vulnerable to relatively much cheaper goods from China.
4.4 Effect of WTO Regime on Pakistan Economy-Textile Sector
Textile industry has been the bulwark of Pakistan's economy. Textiles are more central to the economy in Pakistan than in any other major nation. They account for almost three-quarters of the country's exports - $7.4 billion for 2002 - 2003 and 40 percent of jobs in the manufacturing sector.
Pakistan has an elaborate infrastructure for the production of textiles and clothing. Textile sector contributes the highest percentage in total exports of the country but the main products are yarn, gray fabrics and low and medium quality made-ups. The average unit price realization is often below the world average.
Textile industry has significant importance in Pakistan's economy. Its share in the economy, in terms of GDP, exports, employment, foreign exchange earnings, investment and contribution to the value added industry; make it the single largest determinant of the growth in manufacturing sector. It is 68% of Pakistan's total exports, 9% of GDP, providing employment to 250 million people, Rs. 40 billion in terms of salary, and 4 billion in taxes.
Pakistan spends US $4 billion for balancing, modernization and replacement (BMR) to upgrade textile industry. Pakistan imported 491,000 spindles, the 13.64% of total global imports of machinery in 2002-2003.
There are 1221 ginneries with production capacity of 10314 million bales, 445 spinning units with 9.7 million spindles and 203,000 rotors having capacity to produce 1817 million Kgs. of yarn. Capacity utilization is 83% in spindles and 46% in rotors. There are about 50 composite weaving units and 124 independents mills in Pakistan. Besides there are 400 garments units with capacity of 650 pieces, 400 towel units with production capacity of 53 million KGS and 700 knit wear units able to knit 400 million pieces per year. Major concentration of textile industry is Karachi, Hyderabad, Multan, Lahore, and Faisalabad.
Pakistan is fourth largest cotton grower and have cheap raw material and labor and to get further competitive edge government is forming textiles cities in Karachi, Faisalabad and Lahore. A separate textile ministry formation is also under consideration. Government is also providing low interest of 6.69% of export refinance to exporters.
The Export Promotion Bureau has already launched a scheme for hiring world-class consultants for improving production, marketing and also to acquiring brand names of international repute. It is certainly a right approach and if the local industries succeeded in acquire some popular brand names, the textile industry in Pakistan could enhance its export to a much greater height in the days to come.
4.5 TRADE POLICY 2004-05
The Government of Pakistan in the Trade Policy 2004-05 assures the contribution up to 50% of the cost of rehabilitating the infrastructure of existing industrial estates. The scarcity of water due to "tanker mafia" is also addressed in the trade policy, which was a lame excuse for sufficient supply of water being the basic raw material for Textiles to cater to the industrial consumers.
Keeping in mind the significance of the growing application of the Information Technology in the Textile sector, a decision to establish a Communication City in Islamabad to provide all infrastructure facilities to IT, and Telecommunication has been undertaken. It will assist the instant communication and the action of the Textile Business Unit in Pakistan to the International market.
The government introduced major changes in Export Promotion Bureau (EPB) so that it could play the role of a true representative institution of exporters. From now onwards the EPB would be required more specific in targeting and guiding exporters to optimize share in the world marker while the government would also play its part in providing all sort of assistance to get more share in the world market. In order to enhance volume of trade with the trade partners in the world, the government was actively engaged in talks for preferential and free trade agreements with Turkey, Sri Lanka, India, USA and EU with a view that such commitment would help promote exports from Pakistan. The share of fabrics made from polyester and other man made fabrics in textiles has been seriously jeopardized by the cut in Deemed Duty Drawback announced by the Central Board of Revenue (CBR). Revision in duty drawback is in order and the announcement made by the commerce minister is welcomed through the Trade Policy 2004-05.
4.6 Challenges to Pakistan Textile Industry
Our reliance on textile sector is evident from the fact that this sector alone account for 60% of our exports, but the portfolio of our textile exports is not well diversified. We are heavily reliant on a few categories for a major share of our textile exports and have left many potential segments untapped. The bandwagon mentality of our exporters has resulted in high pricing of quotas, when a price is paid to export under a quota-restricted category. There is a need to shift the focus towards untapped markets.
Table I below shows the present quota for different countries (2003)
The major players, Vis-a Vis quota are EU and the USA. How will Pakistan and other competing countries fare post-quota regime depends on the attitude, mainly of USA and the EU.
Like the EU, the USA will also concentrate on high tech textile products like non-woven, particularly hygiene products like diapers, wipes, feminine hygiene and adult incontinence and high end fashion, particularly for women's wear. The USA and the EU will, on the one hand, demand better market access for their textiles and also the implementation of WTO bindings, particularly in tariffs and intellectual property rights and enforce strict rules of origin, while on the other hand the buyers will make more demands for compliances. Pakistani exporters will have to be ready particularly on account of chemicals and dyes, labor and environment compliance issues.
Pakistani textile sector is in jeopardy due to its own performance and the policies that come from the government. Presently, Pakistan has the third position among exporters of textile and its position is continuously declining in terms of value. China earning $39 billion is at the top and India with $9 billion is fifth.
Quality and cost competitiveness are both required vitally for international competitiveness
For quality is not a mere function of inspection of products for conformance. Rather quality is to be built into the products through quality of designs, quality of processes, quality of human resources, quality of management, quality of leadership and above all quality of strategic response to turbulent external environment despite which businesses are expected to perform world over. Textile exports likely to hit the mark of $8 billion this year by the end of current fiscal year in June.
Although the growth in the textile sector has been impressive during the four decades after independence (but imbalanced in favor of narrow base of low value added products), stagnation has set in due to certain changes in the global and the domestic factors. With the movement of textile production from developed countries towards less developed countries, Pakistani producers are losing their competitive advantage. During the nineties a combination of factors adversely affected the industry, mainly:
*Removal of export duty on raw cotton, increasing domestic prices to international levels and beyond.
*Frequent changes in governments creating inconsistency in policies of the Government and Financial Institutions.
*Rapid expansion of the installed industry in the hands of new entrants who did not have the managerial skills or the liquidity base to succeed.
*Rapidly changing global markets, specially the shift towards man-made Fibers
*Growing hostility from external sectors, such as geopolitical factors that have affected country image and credit worthiness, creating macro level impediments for the country as a whole.
Psychological barrier: Since many last years Pakistan was earning the $6 billion but since now it has added $2 billion in the year 2002-2003.
Realistic issues in retaining its earnings:
*Shortfall in the Cotton Crop: The size of cotton crop is generally estimated at 10 million bales per year, which so far was suffice to cater to the need of the textile industry. However, with the expansion in the capacity, the demand for cotton has also increased and currently the industry requires at least 12 million bales a year creating a shortfall of at least 2 million bales. The shortfall in demand and supply may further aggravate in future if the steps were not taken for per acre yield in t he country and bring more land under cotton cultivation. Balochistan has recently entered into cotton cultivation. Hence the increasing international and local price of cotton yarn is a barrier to address as soon as possible in order to compete globally. Infestation of the cotton crop by leaf curl virus, reducing supply sharply and increasing prices.
*Electricity rates: Power and gas are used in manufacturing process for all products. Presently WAPDA distribution companies provide electric power to most of the industries in Pakistan. The rest are served by KESC or are using self-generation. Due to various reasons the tariff is high and there is little likelihood of the tariff coming down in the next years or so. WAPDA as well as distribution companies have weak financials and therefore there is no chance of lowering the tariff unless all the issues are examined threadbare as the solutions implemented properly.
*ISO certification: The developing countries like Pakistan are not in full compliance of the standards that are given by the developed countries regarding the quality ISO (9000 & 14000) and working environment. Moreover the labor laws currently practiced in Pakistan are unacceptable due to their noncompliance with the international market.
*Diversification in the trade direction as well as the product range: More than 50 per cent of Pakistan's exports are directed towards Europe and North America.
The newly available market in the East European countries might have more appetite for Pakistan Textile products in view of the identical demand of fabrics produced in this country as compared to the extremely choosy market in the Western European countries. Inclusion of ten more countries in the EU zone namely United Kingdom, Ireland, France, Monaco, Belgium, Netherlands, Luxembourg, Germany, Spain and Portugal may double the market for Pakistan Textile. The textile industry should expand from men wears to those to women and children.
*Untrained manpower: It is not uncommon that the attitude of the government functionaries towards the industry and the business people is harsh. Instead of helping them and guiding them to be in full compliance of the prescribed requirement by training the company personnel in the WTO and other rules as well as the laws rules and the regulations of the Government of Pakistan. The labors are not aware of buyers prescribed quality, cost and delivery schedule of the goods being produced. This lowers the moral of the employees and result in low productivity, higher unit cost and more wastage.
*Antidumping on Pakistan Bed Linen: EU is presently investigating an anti-dumping case against bed linen exporters of Pakistan that is highly affecting the economy of Pakistan.
*Participation of Textile agencies in the WTO decisions: The industry under the auspices of APTMA or perhaps the finance/commerce ministries/EPB has a major misconception that the developing countries like Pakistan are always suppressed by the developed countries, that are supposed to be the only active members of WTO. Pakistan avoids taking part in the regular meetings held for any improvement regarding global trade and hence keeps its involvement minimal in the WTO decisions. Pakistan textile industry would be less competitive due to the lack of awareness about the prevailing market scenario of the world.
Supply chain: The concept of an integrated supply/value chain has been embraced by all major multinational business concerns leading to significant cost savings and development of strong competitive advantages, however, in the Pakistani environment, it remains an unknown variable. The current supply chains in the textile sector are distorted, disconnected and unbalanced with the result that a high percentage of shipments barely make it by the agreed upon shipment date.
The new business environment will see buyers slapping fines for shipment delays of even 24 hours and air shipments in case of further delays; hence the criticality of well balanced and coordinated supply chains cannot be underestimated. Delayed shipments are essentially a breach of contract and with the choice to buy from anywhere in the world post 2005, buyers will not be hesitant to dump one supplier in favor of another. Customer loyalty will depend heavily on the variables of customer service, on time delivery being one of them.
Contact with foreign investors/ buying houses: Pakistan has felt that it would need more buying houses and retail stores for the international markets. It would act as liaison between the international market and the local vendors. The buying houses also help in establishing the awareness about the brand names and the types of products Pakistan is able to make as per customer's requirement.
5.0 OVERVIEW OF THE TEXTILE COMPANIES.
The story of textiles in the subcontinent is the story of GulAhmed. The group began trading in textiles in the early 1900's. With all its knowledge and experience, the group decided to enter the field of manufacturing and GulAhmed Textile Mills Ltd. was incorporated as a private limited company, in the year 1953. In 1972, it was subsequently listed on the Karachi Stock Exchange. Since then the company has been making rapid progress and is one of the best composite textile houses in the world. The mill is presently a composite unit with an installed capacity of 103,000 spindles, 220 wide width air jet looms, 90 Sulzer's, 297 conventional looms and a state of the art processing and finishing unit.
There are 11 manufacturing facilities. The turnover of the company is US $100 billion in which 60% are the exports.
The following is a list of the major companies that comprise the group:
GulAhmed Textile Mills Limited
GulAhmed International Limited (FZC) - UAE
GulAhmed Textile Mills (Europe) Limited - UK
GulAhmed Energy Limited
GulAhmed International Limited (FZC) - UAE is a wholly owned subsidiary of GulAhmed Textile Mills Limited and GTM (Europe) Limited is a wholly owned subsidiary of GulAhmed International Limited (FZC) - UAE.
Both subsidiaries are engaged in trading of textile related products.
In the textile field, activities start from the spinning of cotton as well as man-made fibers and extend to weaving, processing and finishing of all types of cotton and blended fabrics, bed linen, home furnishings, garment manufacturing, etc.
The group has been a pioneer in the field of power generation. GulAhmed Energy operates a power plant of 136 MW capacities with a project cost of US$140 million located at Korangi, Karachi. The sponsors of this project include the International Finance Corporation (subsidiary financial institution of the IMF) and Tomen Corporation. The project has been in commercial operation since November 1997.
Management of the group is professionally qualified and broadly experienced. The directors have held top positions in various textile bodies, export committees and have also assisted the Government of Pakistan in some of the major trade talks with European Countries (EU) and USA authorities.
GulAhmed is a member of the following trade unions and organizations in order to be the active part of every transformation in the textile industry rules. It also helps GulAhmed to have the competitive edge. GulAhmed is a part of all the organizations or trade unions that are stated below.
The Karachi Stock Exchange (Guarantee) Limited.
Lahore Stock Exchange (Guarantee) Limited.
*All Pakistan Textile Mills Association.
*Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association.
*All Pakistan Bed sheets & Upholstery Manufacturers association.
*Karachi Cotton Association.
*Chamber of Commerce & Industry, Karachi.
*Employees Federation of Pakistan.
*All Pakistan Textile Processing Mills Association
GulAhmed's fine textile products represent a unique fusion of the century old traditions of the east and the latest textile technology of the west. The purest of cotton fibers, produced from the fertile lands of the Indus Valley, are spun, woven, and processed into the finest quality cotton and blended products through a combination of latest technology, skills and craftsmanship of this traditional industry.
The company has recently installed 9 state of the art comprised embroidery machines. Each is capable of producing designs up to 9 colors and on as many as 20 heads at a time. They are planning to start the apparels for the export market, which will include gent shirts.
Products include quilt covers, duvet covers, flat and fitted sheets, pillow
Covers, valance sheets, sheets, bolster case with all sorts of fancy confectioning, embroidery and embellishments and are packed to buyers' specific requirement.
Curtains include ready made curtains lined, un-lined and
Tap top curtains, plain or fully accessorized with tiebacks, pelmets, cushion covers, in different styles of confectioning and embroidery and are packed to buyers' specific requirement.
Kitchen articles include tablemat, table cover, napkins, gloves, aprons, potholder, breadbasket, bread bag, and kitchen curtains.
It includes include the crip covers, baby pillow covers, crip bags, bed sheet etc.
GulAhmed is the first vertically integrated Mill in Pakistan to produce specialized coated fabrics up to 3.2 meters wide. Types of coating include Blackout, Fire Retardant, Water Repellent and Flock. These finishes may be used to produce Table Cloths, Shower Curtains, Roman and Vertical Blinds, Kitchen linen, Teflon coated table cloths,Velour curtains, Heat resistant Aluminum coatings for ironing boards, coated fabric for roller blinds and various other specialized items. Fabric like Jacquard, Chambray and Dobby is also manufactured. GulAhmed's name has been synonyms with quality and style for decades in the sub continent. GulAhmed has introduced new fashion trends and dedicated the style the style of the day with its classic yet contemporary designs. In house designers constantly strive to keep up with the latest fashions and come up with innovative designs that become the fashion statement.
GulAhmed specializes in medium-to-fine-count cotton yarns and is capable of producing Dobby died 100% cotton material using a wide variety of synthetic fibers including polyester, rayon and other man-made fibers.
GulAhmed is a network of composite mills, which manufacture goods from yarn to finished products. In order to achieve and maintain high quality control and to retain strict focus on specialization, the production units have been decentralized into the following units:
*Pretreatment, printing, dyeing and finishing
*Design & style
*Hemming- household textiles
5.12 DEWAN MUSTAQ
Dewan Mushtaq Group has an annual turnover exceeding Pak Rupees 30 billion. The main fields of business include textiles, sugar, polyester and acrylic staple fibre, assembly-cum-progressive manufacture of automobiles and equity participation in a private bank. Other allied businesses include a polypropylene sacks making and particle board manufacturing plants as downstream industries of sugar industry and automotive parts manufacturing as backward integration of its automobile industry.
All group companies are highly reputed for paying their shareholders handsome dividends regularly, and in fulfilling their financial obligations and commitments on time.
The history of Dewan Mushtaq Group goes way back to the year 1916 to the State of Patiyala in the Punjab Province of India when a small cottage industry was set up by Dewan Mohammad and his son Dewan Mushtaq Ahmed to manufacture garments. During 1918, another establishment was started in Karachi to import clothing and other multifarious commodities which were then sold all over India.
In 1947, the Dewan family migrated to Pakistan. They settled in Karachi, formed Dewan Mushtaq Sons, and started trading in commodities like tea, sugar, second-hand clothing, garments and fabrics. Due to hard work and honest dealings of the family, the business rose to new heights and by late fifties, the turnover of the firm was as significant as Rs. 60 million per annum.
The Group presently employs over 12,000 persons at its various plants and offices.
The second textile unit to join the Group was established for the manufacturing of spinning yarn in 1962 at Hyderabad, Sindh, by another entrepreneur in the name of Al-Murtaza Textile Mills Limited. Dewan Group acquired the company in April 1975, when the entire workforce of Al-Murtaza was on strike and the losses had accumulated to Rs 9.29 million in the project with total Owner's equity of Rs 9.8 million. The Group was able to achieve a turn around in less than a year and in the very next year of acquisition it earned a gross profit of Rs 14.2 million with exemplary labour management relations. These results were achieved in spite of the fact that after about nine months of operations under the flag of Dewan Group, the blow room caught fire, putting one of the two blow room lines out of commission.
The project size that stood at only Rs 42.5 million at the time of its acquisition in 1975 has now grown to Rs 147 million. Similarly, the sales have gone up from Rs 28.8 million in 1975 to Rs 255 million in 1997. Also in 1975, when the unit was acquired, an average of only 15,042 spindles were operational, whereas now all of the 27,400 installed spindles are running efficiently, thereby productively contributing to the growth of the project. The production figures which stood at 1.85 million kg. in 1975 has grown now to more than 8.0 million kg.
The raw material used is lint cotton both of local origin and of imported origin, Viscose Fibre, Acrylic Staple Fibre and Polyester Staple Fibre. The polyester staple fibre and acrylic staple fibre being used in yarn spinning is produced by the sister concern Dewan Salman Fibre Ltd.
The production technology being used is modern and competitive with other units working in the textile sector of the country. Efficiency consciousness is the hallmark of the company's corporate culture with in-built efficiency appraisals in the operational system.
There is complete weather control inside the plant and the worker's health is protected by using the most modern environment methods. The Quality Assurance System of the unit is known throughout the Textile Industry for its stringent controls.
A well-planned strategy for balancing, modernization and replacement (BMR) is under implementation in the company. In the year 2000, the sales of Dewan Mushtaq Textile Mills Ltd., were over Rs.76 million.
In 1968, the Dewan Family, under the leadership of Dewan Mohammad Umer Farooqui, ably supported by his younger brother, Dewan Salman Farooqui, decided to enter the industrial arena.
The first industrial unit was set up in 1970 under the name and style of Dewan Textile Mills Limited with a capacity of 25,080 spindles which has since been increased to 61,704 spindles. The Group strengthened its footing in the textile field by taking over another textile unit in 1975, now known as Dewan Mushtaq Textile Mills Limited with an installed capacity of 25,776 spindles. Thereafter, the Group established another spinning unit Dewan Khalid Textile Mills Limited, consisting of 26,624 spindles.
By mid of 1980's, the Group with its characteristics of honesty, integrity and determination, became one of the major textile groups in the country. At this stage, the Group decided to diversify its activities to other spheres and entered the sugar industry. In 1987, the Group established Dewan Sugar Mills Limited with a sugar cane crushing capacity of 3,500 metric tons/day which has been gradually expanded to 9,000 metric tons/day, thus making it one of the largest sugar plants of the country. The Mills obtained ISO Certification in 1998.
The Group further diversified its range of business by setting up capital-intensive polyester staple fibre plant under the name and style of Dewan Salman Fibre Limited. The Group's credibility is evident from the fact that Dewan Group was able to obtain the collaboration with the world's giant conglomerates like Mitsubishi Corporation of Japan and Sam Yang Company Limited, Republic of Korea and set up the state-of-the-art plant in 1990.
The Company signed an agreement with Messrs Noyvallesina Engineering, an Italian company, for establishing an Acrylic Fibre and Tow Plant as part of its expansion plan. The Acrylic Plant with an installed total capacity of 55,000 tons per annum commenced commercial production operations from 1st July, 2000. In the first phase, the Acrylic Plant is producing 25,000 tons acrylic fibre. In phase II, the output will be raised by 30,000 tons.
The Group manifested its decision to diversify into automobile industry of Pakistan through the incorporation of Dewan Farooque Motors Limited on December, 1998. Within this month, two more milestones were reached: the signing of Technical License and Exclusive Distributor agreements with Hyundai Motor Company, Korea's No. 1 and world's seventh largest automobile manufacturer.
1999 marked another important year in the history of the Group when Dewan Farooque Motors signed the Technical Collaboration Agreement with Kia Motors Corporation of South Korea, in July, 1999.
Dewan Farooque Motors is now a key player in the automobile industry of the country offering an impressive line up of passenger cars and commercial vehicles. Its state-of-the-art plant has a capacity of 10,000 vehicles per annum on single shift basis and is equipped with the latest facilities which include CED paint system and robots for the final coat.
June, 2000, marked another important milestone in the history of the Group when its flagship company Dewan Salman Fibre Limited, acquired Dhan Fibre Limited and fully merged and incorporated its facilities into its operations .The total output of Dewan Salman Fibre Limited's 3 polyester units is 700 tons per day. The company today enjoys a market leader's position and commands market share of 60% in the country's fibre industry.
The mission of Dewan Mushtaq Group is to be the finest Organization, and to conduct business responsibly in a straightforward way.
Our basic aim is to benefit the customers, employees and shareholders, and to fulfill our commitments to the society. Our hallmark is honesty, initaitive and teamwork of our people, and our ability to respond effectively to change on all aspects of life including technology, culture and environment.
We will create a work environment, which motivates, recognizes, and rewards achievements at all levels of the organization, because
5.13 DEWAN KHALID
The latest textile unit to join Dewan Group is Dewan Khalid Textile Mills Limited. It was established in April 1978.Kotri near Hyderabad, Sindh, with Chinese assistance in the shape of supply of complete spinning equipment valued at RMB Yuan 6.763 million under Pay-As-You-Earn scheme. The whole of that loan stands retired now and was timely paid back in accordance with the originally agreed schedule.
The main building of the plant was completed in early 1979 and erection of machinery was started soon thereafter, which was completed by September that year; and within a month's time the commercial production commenced.
The company, and thereby Dewan Group, had a landmark experience on 11th July, 1979, when its subscription list opened for a day and Rs 58.381 million were received from the public at a large for an issue worth Rs 7.2 million only. Consequently, a computer draw was held for identification of successful allotees.
During the very first year of its operation in 1979-80, a sales figure of Rs 104.7 million was achieved. During the same year the production of yarn stood at Rs 87.8 million. The same unit now has gained size of Rs 332.5 million, the sales stood at over Rs 300 million and the production of yarn at 5.2 million kilograms. In the year 2000, the sales of Dewan Khalid Textile Mills Ltd., were over Rs.56 million.
The unit manufactures cotton and blended yarn using lint cotton both of local origin and of imported origin, Viscose Fibre, Acrylic Staple Fiber and Polyester Staple Fiber. The polyester staple fiber and acrylic staple fiber being used in yarn spinning is produced by the sister concern Dewan Salman Fibre Ltd.
The quality controls being applied are state-of-the-art and the product enjoys a high reputation. The labour management teaming up is also exemplary.
The corporate culture of the unit has been professionalized, resulting in cost effectiveness and quality consciousness which pervades through all echelons of the employees.
Protection of the employee's health, plant and machinery are above the set standards, aimed at environmental preservation. The company has plans to increase the capacity in near future.
5.2 Overview of the Textile Process.
Opening and Cleaning (Blow Room)
Upon arrival at the mill, the raw cotton bales are opened and loosened. This helps separate and cleans the cotton before it is fed into carding machines. Cleaning by removal of impurities is done manually. Several blenders feed cotton into cleaning machines, which further mix cotton, break into pieces, and remove trash. These machines are called pluckers, which then transport cotton to a machine called "Asde" which has magnet that extracts all the metallic impurities. The cotton is then sent to the multimixer for automatic blending. Another machine with a control check on screen is also installed. The waste is gone through a sucking machine in the sucking room.
Carding machine further loosen and separate the cotton fibers in a manner that the cotton is aligned in a thin web of parallel fibers, which is formed into a ropelike strand called "Silver." The silver is collected in a can in preparation for roving.
For high quality yarns, the silver is combed after carding to make the fibers more parallel and remove smaller fibers. Combing is not done at GTM #5. Combing is actually the further stage, which removes the shortest fibers and makes the others even more parallel. This makes the yarn, stronger, more even, and almost free of fluff. Both carded and combed cotton come in various qualities.
After the carding machine, the silver goes into the drawing machine. Silvers are drawn out, blending the fibers and making them more parallel. Hence, drafting (stretching) along with doubling is done. Doubling and drafting is done in the same ratio. At this stage, there is Breaker and Finisher drawing. Finisher drawing is equipped with an auto sensor, which senses weight and works accordingly.
Drafting is done on the simplex machine. The product at this stage is 'Roving'. The roving strands (threads) are collected in cans and fed to the spinning machine.
The spinning machine draws out the roving strands, adds twist, and winds the yarn. This is the final drafting stage to achieve the final count, i.e. by drafting and twisting. Hence, 'Yarn' is the final product of spinning.
Winding done at the spinning stage is further wound into larger packs. Once this process is completed, yarn is ready for dyeing or weaving of fabric.
The laboratory at GTM #5 is equipped with machines that randomly check the quality at each stage of the sinning process.
5.3 FLOW OF PROCESS
5.4 SUMMARY OF PROCESSES
6.0 APPLICATION OF 5S OF HOUSEKEEPING
6.1 A Brief Survey of the Textile Industry
An issue that has not been addressed in the literature is the implementation of 5S of housekeeping within the Textile industry. We therefore decided to survey a sample of Textile companies with regard to the use of housekeeping technique. The purpose of the survey was to gain some understanding of the current levels of 5S implementations and the driving forces behind the attempt to go 5S. The survey looked at Textile companies all over the Karachi, but was restricted to Yarn Manufacturing plants only. Yarn Manufacturing plants (as opposed to so called Spinning mills) are those that start from raw cotton.
A total of 5 surveys were sent to different Yarn Manufacturing plants all over the Karachi surveys were returned by mail and one were collected by telephone as a follow up for a total of 3 surveys. On average the survey took ten minutes to complete, either directly or on the telephone. Companies were given one month to respond to the mail survey. If there was no response within a month a follow up phone call was made to attempt to complete the survey over the phone. Two of the companies that were followed up over the telephone declined to fill out the survey. In the rest of the companies that were contacted, either the contact person had left the company and no other contact was available, or the contact person was not qualified to complete the survey.
The geographical locations of the companies that completed the survey were scattered mostly in the eastern part of the Karachi (National Highway) and western part ( Korangi industrial area ).
All companies reported that becoming cost competitive was the driving force behind implementing. All three reported using or making some effort at using JIT and TQM, and some also reported using 5S and setup reduction. Some of the challenges faced by these companies when implementing 5S include: changing historical rules within the company, union issues, automation issues, employee training, and changing employee mind set. Their reported gains from implementing 5S include reduction of cost, customer satisfaction, reduction of machine downtime, and having a better and safer work place. It is clear from the survey result that Textile company are starting to see the need for the use of Housekeeping techniques in order to stay competitive in today's global market. The survey confirms that by reporting the majority of the top management in the companies to be very supportive to carry out the 5S initiatives. They are slowly adapting those housekeeping techniques and trying to change the old mind set on how the textile business is run.
6.2 5S OF HOUSEKEEPING
There are many tools that do not readily lend themselves to be quantified by simulation ; one of these tools is 5S. They can be used to tackle problems without requiring additional engineering and expertise and are practical and simple methods to engage employees in organizational improvement. In this chapter we will develop a detailed 5S for textile industry and speculate on the benefits that can be gained by implementing this tool
There are different areas where textile mills can use 5S, the Go downs, warehouse Opening and Cleaning (Blow Room) area and the mill tool area.
AreaProductsMode of transportation
Go downsFinished GoodsTrucks , rails
WarehouseRaw materialTruck , rail
mill tool areaTools , fixture People
At Go-downs for example the bundles / carton arrive from their final process by loaders, small crane. The bundles / cartons are unloaded at the entrance to the go-downs / warehouse, where it is wrapped in a protective packaging and banded. The bundles / cartons is tagged with a bar-coded ticket containing the carton number, width, weight, length, the mill order item number, customer order number, bay number and the tracking number. The crane then picks up the bundles / cartons and places it in its designated place. Each place is numbered, and bundles / cartons are placed in their designated place ready for shipping.
While touring the facility it was observed that the driver of the buggy has to make occasional stops to remove rolls of plastic packaging that were blocking the way. It was also observed that sometimes when the crane operator is ready to pick up the bundles / cartons from its place to move it to shipping he finds out that it is not the right bundle, a bundle without a tag, or a bundle with the wrong tag information. Most of the mistakes happen at the beginning of the line when the bundle is wrapped and tagged. At the other end of the facility the current tools and packaging area for the mill are completely disorganized. Tools scattered all over the place, outdated rolls occupying space, and a cluttered shop floor distinguish the roll preparation area. Here one thing is proposed:
Figure...6.2(a). Figure 6.2(b)...
A 5S program to designate, an area for the tools used in the wrapping operation and roll preparation area for the mill.
First, 5S for the tool and packaging area at the warehouse and mill area will be explored.
The first element of 5S is Sort. Good housekeeping starts with sorting those items that are important from those that are not relevant to the working areas. At the Packaging and warehouse area only tools that are needed in the packaging operation should stay there; this includes plastic packing and tools used in the packaging operations. The same thing applies to the mill area where damaged rolls (cotton / raw material), broken fixtures, and unnecessary tools should be removed. A good start is to get rid of anything that is not going to be utilized for the next 30 days or the goods which you never need, or item for scrape. A Blue tag is placed on items which will use once in a month, red tag on unneeded items and Black tag for scrape items and the supervisor must put the Green tag on those which is use daily. Each tag must have a number, which department it belongs to, the date, and the reason for tagging. Figure shows an example of tags.
If there are doubts as to whether any item is needed or not, a appropriate tag must be placed on it. At the end of the tagging the workers at the packaging area or the mill must determine whether these items should be removed to another place, taken to the repair shop, or taken to a discharge area. A discharge area must be allocated to those items that must be removed. Thus for example damaged rolls should either go to the discharge area or be sent to the repair shop.
The second element of 5S is Straighten. Straighten involves having order in the workplace and less congestion so every activity can be performed freely with minimum time. After all unwanted items are moved, the next step is to organize the items that are needed in the best way possible. First of all, at the manufacturing tools and packaging materials should all have a well-defined, tagged and designated area for placement? This area should be within reach of the workers so that items are available when needed, and it should be outlined clearly by painting a rectangle around it. Items that have a designated storage place must be labeled with the name and a return address on the label so that they can be brought back to the proper place. The same thing applies to the mill area as well. Rolls / material must be placed in an area very close to the mill so that they can be transferred quickly whenever a changeover is needed. All material and tools (i.e. Figure S2.1) must be tagged and labeled. Backup and work tools must be painted and each color must represent the type of tool. With respect to the tools, and fixtures needed for the manufacturing, these should be placed in an area close to the manufacturing area to minimize movement and to expedite work. Color-coded areas must be designated for these items so that after use each can be placed in the proper place. Once the items and tools, rolls, and fixtures are placed in the proper position.
The next step is to clean the work place. Sustain is the third element of 5S. It has to do with cleaning the working environment so as to sustain the improvement. Cleaning include things such as machines, tools, rolls, fixtures, floors, and walls. Dirt, oil, and stains should be wiped off from machines. Areas where red-tagged items were removed must be cleaned. When touring the textile mill areas the places looked cluttered, dusty and remain of cotton. Dust is one characteristic of every industry; big target areas for cleaning are the floor, walls, conveyance equipment, and loading area . Cleaning should be done on a daily basis. By cleaning fixtures, sources of malfunctions such as broken covers, or loose nuts can be uncovered, and immediate action can be taken to fix these problems. Cleaning responsibilities should be assigned to different workers to make cleaning a team effort. To prevent dirt from getting into tools, rolls, and fixtures, simple things such as covering around cords, legs of fixtures and tables can be done to make the removal of dirt easy. (i.e. Work place should like Figure S3.1)
The fourth element of 5S is Systematize. Systematize means continuous work on the previous three 5S pillars. Kaizen efforts in the work place do not end if they have been implemented once or twice. Rather, it is a continuous improvement effort. Procedures should be set up to make sure that employees are working on sort, straighten, and shine. It is easy to perform kaizen activities in the work place once and observe the improvement. However, in order to maintain the improvement it should be done on a consistent basis, otherwise everything will be back to what it was before. How can this be done at textile industry? A team of different people can be assigned to the different parts of the mill to conduct weekly audits to see if every 5S initiative is being followed. At the startup of a new initiative, it is always hard to obtain results right away; so it is important to develop a checklist or assessment sheet to follow up on these initiatives. A 5S assessment sheet developed for every area at textile mill shown in the table S4.1
This checklist sheet can be used to evaluate the current status of a 5S programs at textile industries on a weekly basis and corrective actions and improvement can be taken accordingly.
The last element of 5S is Standardize. Standardize means to sustain and adhere to 5S standards. Managers should set standards and make everyone follow them. People should be held accountable at the packaging, shipping area and mill area for carrying out 5S actions. For example, a group of two people may be responsible for carrying out the checklist, two others are responsible for cleaning and sorting, and two others are responsible for sorting. 5S does not promote adding extra people to the shop floor, but it requires that existing workers at each area carry out these tasks and make practicing 5S tools a habit. Also, in order to see the improvement people at industry should be encouraged to take before and after photographs that recognize the difference and provide more motivation.
Figure : 5S Audit Checklist .( S4.1)
Date: Target Area: Performed By:
ScoreNote for next
( Sort )1) Necessary items are sorted form those that are unnecessary.
2) Discharge Area is defined
3) Unwanted items are removed from discharge area.
( Straighten )4) Items are organized to permit easy access to material and tools
5) An access system is in place with label and color code to identify.
6) Proper position of tools, material and objects.
7) Material and objects are always in their designated position.
( Shine )8) Tools, jigs and fixture are well maintained and clean.
9) Wall, floor, working areas, conveyance equipment and hallways are shine and stainless.
10) Action have been to developed to remove sources of waste
( Systematize)11) Procedures are set to work on sort, straighten and shine.
12) 5S is run on daily basis.
13) Working environment is healthy and pleasant.
( Standardize )14) Standard are set and followed.
15) Goals of 5S have been achieved.
Total Score :
5S should be a way of life at Textile companies. In the Textile industry workers seem to accept dirt as part of the normal condition of the workplace, the argument being, "Why should I clean it, it will only get dirty again?" Managers who fail to promote the principles of 5S normally end up with a workforce that is indifferent and lacks discipline. Companies must recognize that people are much more inclined to support what they help create, and are highly likely to resist what is forced upon them. 5S in its implementation sounds basic; in fact, not implementing the tool can have a detrimental effect on the organization. Housekeeping has always been overlooked because it seems too simple.
However, it is a powerful way to reduce waste. Removing the unnecessary items can free up space, leading to flexibility at the working area, which in turn avoids congestion. The uniqueness presented by companies of having long setup times and costly changeover makes it even more necessary to promote 5S. At companies, having the right tool or fixture in the place needed at an area can have a great effect on reducing setup times. Also, tools and fixtures needed are very large so eliminating the unnecessary materials in the roll area makes it easier to convey these items, which reduces the time needed to do setups. Cleanliness will lead to better identification and problem solving. The communication process can be improved between employees.
5S is the foundation of any manufacturing program and could be implemented at the companies' facility .This provides a good start in order to help companies achieve the desired inventory and lead-time reduction. It is strongly believed that companies will achieve all the above mentioned benefits offered by the 5S initiatives. This is also supported by the benefits that have reportedly been gained by implementing good housekeeping in different manufacturing environments.
Cox (2002) reported that Getchell Gold (GG), a gold mine in Neveda implemented 5S and achieved great savings. GG implemented 5S in three areas at their facility. Using 5S audits the team was able to demonstrate results to management within just two days. Sixteen of the 5S events had been completed both on the surface and underground. 5S had helped to eliminate over $53,000 in waste and had offered considerable improvements in work area efficiencies.
Sweeney (2003) reported that Labinal, Inc, a division of French-owned global aerospace supplier began a 5S program at their company. They wanted to make the 5S program fun and involve every one, so they developed the Golden Duster Award. This was a trophy presented to the winning team of the month; a 5S checklist was developed with the highest winning the award. Here again it should be noted that there might be some barriers to implementing tools described in this section. For example, when considering 5S the union contracts might not allow the workers to do simple things such as sweeping the shop floor. Also, there might be resistance to change from the workers themselves. Workers are accustomed to the way the business is run and in the industry dust and dirt is part of the production area, so workers would not care if the place is clean or not. People are always attached to the way that business is run, and it might take some time to change the culture of the company, but the results clearly show that it is worth the effort to do so.
The main goal of this dissertation was to see the implementation of 5S tools and techniques in the textile industry, and what we find is that they are not using the proper way to manage their tool and inventory in different areas, and so for this they are facing some problems ( i.e. waste , long setup time and etc ) , for this we developed a detailed methodology of 5S to implement it at textile industry . Tool like 5S have a significant impact on textile industry when implemented, by further helping in elimination of wastes such as excess inventory, long set up times, and missed shipments.
The findings of this research demonstrated potential gains in different areas at industry. It is worth mentioning that there could also be some limitations and potential barriers to implementing tools. These vary from issues like union contracts to management changes. For example, tool such as 5S were discussed, one of the limitations for the 5S program is the union. The union contracts might oppose thing like sweeping the floor or carrying an audit checklist every week. Also, the workers themselves might resist changes to their current work environment; a simple reason for this is the statement "this is the way we always do business."
In conclusion, the primary focus of this research was to see the application of 5S of house keeping in the process industry, with a focus on textile . It was demonstrated that 5S tool and technique is for all seasons and it is not only limited to a manufacturing environment.
NOTES AND REFERENCES
Books and Reports:
Pakistan-Center of Textile World by Rashid Soorty
Course material on 5S
5S Training - The 5s Housekeeping Approach within Lean Manufacturing report
Lean manufacturing tool and technique in process industry. (Report)
Pakistan Textile Journal:
*GulAhmed Textile Mills Profile:
*World Trade Organization:
*Dewan khalid & dewan Mushtaq Profile.
*Notes , images , reports and references on 5S