Kohinoor Textile Mills Limited (KTML) was established in 1953, initially with 25000 spindles and 600 looms with further expansion in 1954.
Initially KTML was a part of Saigol Group owing over 250000 spindles. The Saigol Group represents a golden era of history of industrial and commercial development in Pakistan.
The Group established industrial projects in the field of textiles comprising seven textile mills with spinning (over 2500000 spindles), weaving and finishing facilities, a chemical complex producing insecticides, caustic soda, and chlorine and acetate rayon yarn, a sugar refining unit, vegetable oil & paper mills. The Group also entered into the field of construction, engineering, banking, (owing 55% of shares of United Bank limited) and had interests in many other fields.
Prior to nationalization of the private sector industries in the early 1970’s the Group was one of the largest in Pakistan. After nationalization, the group focused in textiles only.
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In 1976 KTML became a part of Kohinoor Maple Leaf Group (KMLG).
KMLG was born from trifurcating the Saigol Group in 1976. It is now a leading textile manufacturer in the country consisting of one composite textile unit, two weaving and one spinning unit. The Group is also involved in a number of other industrial activities including cement & power generation. The Group participated in the acquisition of Maple Leaf Cement Complex in 1992 under the Government’s privatization program.
The Group manages the following companies:
Kohinoor Textile Mills Limited Textile Composite
Kohinoor Gujarat Khan Mills Limited Textile Spinning
Kohinoor Weaving Mills Limited Textile Weaving
Kohinoor Raiwind Mills Limited Textile Weaving
Maple Leaf Cement Factory Limited Cement Manufacturing
Kohinoor Genertek Limited Power Generation
Maple Leaf Electric Company Limited Power Generation
The Company consists of the following Departments:
Production Planning and Control
Human Resources & Administration
Electronic Data Processing
All KMLG companies are ISO-9000 Certified by Lloyd’s Register Quality Assurance, UK and are listed on the stock exchange with a capitalization of $333 Million. The group annual sales turnover is in excess of $250 Million.
KTML Major Exporting Markets
“To dynamically participate in nation’s economic well-being through providing high standard yarn, fabulous prints and made-ups by maintaining high quality standards, utmost customer satisfaction and perfect working conditions for employees.”
To ensure high quality standards
To provide safe working conditions
To work earnestly for customer satisfaction
To foster the element of continuous training & development for employees
HR & ADMIN
Management Information Systems:
Management Information Systems (MIS) are information systems, typically computer-based, that are used within an organization. The thesaurus describes an information system as "a system consisting of the network of all communication channels used within an organization". A management information system may also be defined as "a system that collects and processes data (information) and provides it to managers at all levels who use it for decision making, planning, program implementation, and control."
An information system is comprised of all the components that collect, manipulate, and disseminate data or information. It usually includes hardware, software, people, communications systems such as telephone lines, and the data itself. The activities involved include inputting data, processing of data into information, storage of data and information, and the production of outputs such as management reports.
Always on Time
Marked to Standard
An 'MIS' is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. In a way it is a documented report of the activities those were planned and executed. According to Philip Kotler “A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers."
FUNCTIONAL USE OF MIS:
Functions in the KTML need particular type of information system that best serves their requirements. These different tasks require particular quantity of information as per their operations. I have explained the information system in existence currently in KTML for each departmental function.
Order processing system:
Sales and marketing departments have very important relationship with customers; they usually work together. The task of the marketing department is to distinguish customers and their demand. Sales department is to deliver the product to the customers. As these two are working parallel to each other, it is more efficient if they use the similar information requirements. Like in most of the organization in Pakistan, these two departments use the same information system which can be useful for activities of both.
KTML receives orders on the system from the customers and suppliers, upon receiving a demand of a customer; this system records the information on the database of the orders from all customers, passes on the reference number of the order by the client to distribution. When it receives the reference number of the order and an operation key from the settlement system, the computer pulls out the information on the content of the order from the reference number and passes on the information on the content of the order, the operation key, and the information for verification to the settlement system. When it receives the information representing the possibility of receiving of the order from the settlement system, the information representing the receiving of the order is stored. At a random timing after the product ordered by the customer is sent, the reference number of the order about order payment claim request is passing on to the settlement system. The information on behalf of whether or not the order payment claim has been completed is acknowledged from the settlement system.
Production management information systems:
EXPECTATIONS FROM THE PRODUCTION MANAGEMENT INFORMATION SYSTEM:
During the founding of the production management information system, it is essential to establish its tasks. This is mainly essential for production KTML, because each production is detailed in its own method.
The following three necessities should be meeting:
• Checking of all business procedures.
• Checking of production through work orders;
• Assessment of designed and resulting computation.
The planned three necessities are not the only ones forced upon the information system in KTML, but are the essential ones that are appropriate to all production companies. Every company can insert new necessities to the essential ones, depending on the particular industrial function and management requirements.
Sales and marketing in fact trade a product, somebody has to make it. That’s where production management information systems come into the action. And these systems are more than just the assembling the product. Somebody has to choose where the manufacturing will be located. Somebody else has to choose how much raw materials will be needed.
There are two systems used for managing the production and manufacturing process which are given below:
1- Transaction information system :( TIS)
Similar to any other information system, the transaction system is composed of the following parts:
• Financial, Material, Production and plant bookkeeping.
• Long-term fixed assets Bookkeeping.
• Salaries Calculation and staff files.
• VAT-calculation of VAT.
TIS information system is consisted of the above listed components and is used for building the basic given financial reports by using the available information.
The transaction information system can also work entirely independently in any manufacturing firm without the corporative information system.
2- Corporative information system:
Contrasting the transaction information system, the corporative system has no predetermined institutional outlines in terms of positive legal provisions. The corporative information system is shaped according to the requirement of the management for different types of information, taking all aspects into account. It is meant to be coordinating the process of gathering and using information.
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Another assignment of the corporative information system is to offer timely and reliable information needed by the KTML for the process of decision-making.
This information system is unable of self-governing work. Its movement is shared with the transaction information system, which comprises the basic database.
Most information firms offer only various reports on the origin of the transaction information system, while today some of information companies offer the whole combination information systems. The reason happens in high prices of these systems.
The clients of these systems are likely to keenly contribute in designing the system by accurately describing the tasks needed from the production management information system. The client should have suitable staff for the project, and is also likely to take part in it in person, which now a days is a key issue for most companies.
SQL-Ledger for finance and accounting:
SQL-Ledger is a double entry accounting/ERP system. Accounting data is accumulated in a SQL database server, for the view any text and browser can be utilized. The whole system is connected via a map of accounts. Every item in stock is connected to expense, income and tax accounts. When things are sold and purchased, the accounts are automatically restructured. Packing Lists, Balance Sheet, Invoices, Income Statement, Sales, Statements, Work and Purchase Orders, Receipts and Checks are produced from patterns and can be altered to meet your demands.
Finance and accounting system’s functions:
The Finance and Accounting System deals with a range of functional and management features connected to finance and accounting process of KTML. It covers these areas of KTML:
Planning and Budgeting.
It allows the financial process of in-house systems. The expense and the revenue books can be kept. This system gives the ability of keeping voucher wise expense facts and generates cashbooks and the associated ledgers and account files.
Planning and Budgeting:
The Sanction Estimate deals with the quantity authorized for specific process under specific budget head. The Revised Estimate (RE), the Latest Estimate (LE), Excess and Savings are created and it keeps record of the more changes taking place at different levels of transaction.
For budgeting, this system supports these functions.
· Generation of Revised Estimate and Proposed Estimate
· Data entered for Proposed Estimate and Sanction Estimate
· Generation of Excess & Savings
· Maintenance of the expenditure vouchers
· Generation of Latest Estimate
For the accounting system this system covers the following:
· Generation of cashbook.
· Maintenance of cheques details
· Maintenance of the revenue
Human Resource Information System (HRIS):
The (HRIS) is software or a program for entering data, retrieving data and other needs of the Human Resource like payroll for KTML. Normally it is like a database of employees. It manages all employees’ information and HR department can take reports and analyze information for any of the employees. It can deal with the company related documents like employee handbooks, evacuation procedures and health and safety guidelines. It also benefits the HR department for enrollment and other information updating. KTML also uses it for payroll generation and other small accounting functions. It helps in recruitment process by analyzing the resume and applicant data.
It also benefits in terms of attendance of employees and helps analyze the pay rise issues as well. KTML uses it for grading pays and positions, performance, development plans, training, advancing the disciplinary action procedure. It also helps indicate the high potential employees and track the new applicant for specific job and helps in interviewing and selection of candidates.
With a suitable HRIS, any one can amend or modify the system according to their needs. HR department allows staff to have their own benefits, updates and changes in address, so it is more flexible for HR strategic functions. Moreover, information required for knowledge development, employee management, equal treatment and career growth and development is eased. At last, managers can get the data they want to support the success of their reporting employees legally, ethically, and effectively.
SYSTEMS FROM A CONSTITUENCY PERSPECTIVE:
Here, I m going to discuss the constituency use of information systems. Normally most of the systems are used by the middle management in KTML. From retrieving consumers’ orders to deciding the supply chain integration is all about the middle and operational level management. We have three levels in our company which are strategic, management and operational levels. In these three levels we’ll describe the three main types of systems normally used to make operations and activities of KTML successful.
Transaction Processing System:
This system is used at operational level. It records the daily routine transaction costs or other trade transactions done. The resources and tasks are highly prepared and prearranged and on the basis of them, the choice, about to grant the facility of paying bill in instalment to customer is given, is made in this system. The system checks all the previous history of the customers from the KTML customer database; if the history is good and customer have no arrears and pays the invoices in time and there is no complaint against that customer then system automatically grant some favour to that customer.
The operational level of the KTML has different divisions such as order material movement control, payroll, processing, employee record keeping and accounts payable. This level is responsible for daily operations. It records all the transactions that happen in everyday activities. TPS join information in different ways to meet the hundreds of information requirements KTML requires for business processes. It also stores the number of people functioning on the assembling when the product is made and what tasks they perform.
Staff using transaction processing systems usually needs information to help them answer routine questions such as: “How much quantity of the product did we produce yesterday?” or “How much quantity do we have already for today’s production?
It has to store that how much the company paid to pack up the product, keep the product, and send the product to the stores? All this information can be stored in a TPS, for example, how many truck drivers were needed to send the product to the local convenience store.
Management Information System:
Management information system is used at management level of the KTML. Managers use this system to help manage the activities involved in their projects and other business activities. The MIS takes information from the TPS to assist managers answer structured queries like: “How much raw metrical must we buy if we raise production by some fixed quantity.
For the KTML, with the better MIS available, Managers will identify that they must rise their buying of raw material to support the demand. The logistics manager will recognize in time to plan for the new packaging required for the product. The sales and marketing people at management level can recognize almost immediately that the supply to wholesalers is going to be late and so can contact them ahead of time to let them know.
The best benefit of the new MIS system is that the managers don’t have to wait until a specific time of the period to get the information they need to undertake their daily duties. The system can be changed to send the information to the right manager immediately instead of relying on the managers to sort it out. And, managers can makeup the reports to get only that information they need for the process.
With the addition of information systems upward and downward in the management levels and in the whole corporation, managers can access required information in a real-time mode. The information is kept online on the company’s intranet, the system can collect the exact information what managers need for making a decision, and the information can be integrated into all levels of the KTML. All departments in the company can look at what is happening in all the company. Information can be sent among departments because that they are all running “on the same page.”
Decision-support systems (DSS):
Decision support system is normally used at management level of the KTML. Different departmental managers use it to take decisions regarding their activities. It is used by the executive level as well to some extent, such as some decisions regarding the management of the organization. It is helping managers to take decisions like semi-structured or suddenly changing, and not described in time. KTML uses MIS because it often takes data from inside the other departments and also from the internet regarding the market information.
Further more, DSS tells about the performance of staff so it is required by the HR department to fix the reward or promotion of that employee. As it covers the different functions, HR people can use it for attendance purpose of all the employees. It is used mostly at the management level of an KTML, but not like MIS as MIS uses only data from other departments only but this DSS can retrieve data from external sources as well.
DSS also benefits those tasks of KTML that are not directly connected to manufacturing of the product. What if there are employees who are no longer needed for the manufacturing, what are the options for the human resources department to deal with this situation? May be there is an increase in production soon due to the increased demand in the next period that will need these workers. The HR manager can use a DSS system to know if it is good to keep these employees on the payroll even if they won’t be working for that period. Because may be in the future, unemployment rate is low the company may have trouble employing new staff when for the manufacturing.
Draw backs in the present system:
Mostly part of this system is done manually by the responsible personal.
This system is too much laborious as to shifting the data from one application to the other application and off course showing lack of security.
New users take much time to understand the current system.
When a wrong entry is made there is no option to go back and fix the wrong entry.
There are checks though good as for as security is concerned but we think too many checks is some what annoying the user.
This system cannot handle huge data base any more.
At the end of accounting period when the time comes to make statements it is too much difficult to make the statements manually to take print of those after heavy calculations.
There are no sound and visual effects as sound and visual helps a lot to the user to understand and take proper decisions in no time.
The current system takes time in processing as managing huge data base.
The company knows that the current system is not meeting their needs and they must have to shift now to the new system which is based on new technology and which can be extendable with fulfilling the current requirements. They have selected Visual Basic for this purpose which is the default application to develop their systems in. Currently their programmers of IT department are working on enhancement in current system. We have proposed the more advanced technology based MIS systems that are compatible to the company size and company needs. For example they should have all their programs oracle based. They should have latest accounting software such as sage and other advanced versions of these systems.
Obviously the current system does not meet all the requirements of the organization and basically a DOS version which is again the old approach. The new proposed system meets all the need of the organization and obviously it’s an edge for the organization over its competitors. So, in the end we would suggest organization must have to update there system to minimize the cost and time to meet the organization goal successfully.
Accessed on 26/06/2009
Accessed on 26/06/2009
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Accessed on 30/06/2009
Accessed on 30/06/2009
Accessed on 30/06/2009