Degree

Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award

2017

Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

Primary focus in this report is on the management issues of a Textile company, named International Textile Ltd. Report incorporates three issues identified and discusses the recommendations to overcome these issues. These issues emerged from management review meeting at ITL and identified as a key priority to be resolved.

One of the identified managerial issue is the lack of ownership of line managers when business results are not achieved. No clear cut accountability mechanism existed. Accountability, responsibility, contribution and information levels of task was not fixed. Managers could easily get away with their performance issues. Report highlights that this issue is recommended to address through performance management system.

High manufacturing repair and maintenance cost was another identified issue. Maintenance department was segmented and not organized centrally. Breakdown failure was quite high. Not only the break down failure cost but also the cost of production stop due to machine breakdown can’t also be ignored. Also it has potential to hurt customers’ shipment commitments and eventually could lead to loss of business and/or reputation damage. Each section administered by relevant Production unit. All types of excessive parts inventory, especially expensive parts, was also identified as major problem. No check and balance existed. No CAP was established on spending. Resolution to this problem was recommended to address through establishing preventive maintenance mechanism to reduce machine break down failure. It yielded good results. Also all stores were centralized. A GM Manufacturing services was hired and financial cap was put on parts spending for each unit.

Contract labor short on skill issue affects Stitching units. Stitching operator generally comes from Punjab. They usually go on vacation in Ramadhan, Eid-ul-Fitr, Eid-ul-Adha and Crop cutting season. Production is impacted by their absence. Also labor from Punjab on special machines is expensive and quite often they play on their terms. Efficiency and quality of stitching for local labor that includes women was not at par in comparison with labor from Punjab. To bring this issue to resolution, management decided to hire local women labor to add gender diversity and train them to bring their level up where they start producing quality results. Gender diversification is also the requirement of major customers throughout the world. A UNDP training module was used to train stitching operators. This also includes soft skills training and hands-on technical training.

All issues identified and their recommended solutions are tested through test of statistical significance and found in favor of tested hypotheses with all p-values over 0.05 (95% confidence level).

Textiles contribute to over 60% of Pakistan’s export. This report precisely analyzes these management issues in pragmatic way to the benefit of the textile industry.

Pages

55

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