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Selected Company:

INTERWOOD MOBEL (PVT) LTD

Final Project:

Process Analysis & Design

Submitted to: Mr. Tahir Aziz Khan


Submitted by: Awais Ahmad CIIT/FA09-MBA-027/LHR
M. Adeel Khan CIIT/FA09-MBA-069/LHR
Sabahat Abid CIIT/FA09-MBA-130/LHR
Najm-ul-Hasan CIIT/FA09-MBA-112/LHR
Ghulam Asghar CIIT/FA09-MBA-039/LHR
Submitted on: December 31st, 2010
COMSATS Institute of Information Technology
Defense Road, Off Raiwind Road, Lahoe.

Process Analysis and Design

INTERWOOD MOBEL (PVT)


LTD
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Preface
The project named Process Analysis and Design for Interwood Mobel (PVT) LTD is
one of the projects worked on by the members of Syndicators (a study group of COMSATS
Institute of Information Technology consisting of 5 members named Muhammad Adeel Khan,
Awais Ahmad, Sabahat Abid, Najm-ul-Hassan and Ghulam Asghar) and includes the physical
visit of the company. After visiting the company, the group analyses the production process
adopted by the company and identifies the non-value added steps in production process. It also
identifies the problems arising during the production and presents some suggestions,
recommendations and advices to the firm. For this purpose, the group members together make
a project report. A copy of this project report is also submitted to the company itself. This project
is also submitted to the instructor Mr. Tahir Aziz Khan and is presented in the class for better
know-how of people about the production process. At the end it includes all of the supporting
data i.e. charts, graphs tables and pictures etc. attached with the project report.
The references and evidences collected are also included in the report and all necessary
information, gathered regarding the persons the group meets. This project is very useful for the
students of MBA, and we hope, with this project report, people will get more knowledge and
learning about how the production is done in a firm.

Awais Ahmad
M. Adeel Khan
Sabahat Abid
Najm-ul-Hasan
Ghulam Asghar

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Acknowledgements
With the blessings of Allah, we are able to present this report to Interwood Mobel PVT
LTD and COMSATS Institute of Information Technology. We wish to acknowledge our
parents and our teachers especially our instructor Mr. Tahir Aziz Khan for giving us such an
important project and for his efforts with us to complete our project by discussing with us our
Project Outline. We especially acknowledge our friends and members of group for their hard
work and knowledge & skills they provided for the work done. We want to thank our friend Mr.
Abdul-Rehman and Mr. Abdul Rauf, who referred us to the production house of Interwood
Mobel PVT LTD. We wish to thank Mr. Azher and Mr. Talib who guided us about the complete
production process adopted by the company and briefed us the process of manufacturing.
Lastly we want to thank the Labour involved in production who operated the equipment,
machines and plants just to show us the principle and process of plants and equipments..

The Syndicators:

Awais Ahmad
M. Adeel Khan
Ghulam Asghar
Sabahat Abid
Najm-ul-Hasan

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TABLE OF CONTENTS
Preface.............................................................................................................................................3
Acknowledgements........................................................................................................................4
Executive Summary.......................................................................................................................7
Introduction to the Company.......................................................................................................8
Company Profile............................................................................................................................9
The Challenge...............................................................................................................................11
Company Analysis.......................................................................................................................11
Goals..........................................................................................................................................11
Focus/Vision/Mission................................................................................................................11
Achievements.............................................................................................................................11
Production Process Analysis.......................................................................................................12
Process Activities / Departments...............................................................................................12
Flowchart of Major Steps in Process.........................................................................................13
Cause & Effect / Fishbone Diagram..........................................................................................13
Run Chart / Major Works Executed*.........................................................................................14
Opportunity Flow Diagram for one plant..................................................................................15
Blueprint Flowchart...................................................................................................................16
Issue Tree......................................................................................................................................17
Issues and Problems.....................................................................................................................18
Drawbacks in the Process adopted.............................................................................................18
Suggestions / Recommendations...............................................................................................20
Appendix/Annexure.....................................................................................................................21
Pictures.......................................................................................................................................21
................................................................................................................................................21
................................................................................................................................................21
................................................................................................................................................21
Achievements/Certifications......................................................................................................22
........................................................................................................................................................23
........................................................................................................................................................24
Bibliography/References.............................................................................................................25
Evidences......................................................................................................................................25
Concerned persons & Designations...........................................................................................25
Contact Numbers........................................................................................................................25
Email Address............................................................................................................................25

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Executive Summary
The project of designing a Market Plan for Interwood Mobel Private Limited, which is a
manufacturing business concern of furniture and wood items, includes the physical visit of the
company in order to collect the required information, as assigned by the COMSATS Institute of
Information Technology and Business Administration. The company has been doing
woodwork and manufacturing furniture since last three decades. During this period it has grown
from strength to strength. It has a share capital of sixty five million rupees. Furthermore,
substantial investments have been made both in machinery and personnel to achieve a better
quality product at an affordable price. It has worked on a lot of major projects like Dubai Palace,
LUMS University and Habib Bank Limited etc. The visit by Syndicators helped to gather the
necessary information for the analysis of Production Process by all members of the group. The
persons named Mr. Abdul Rouf, Mr. Azher and Mr. Talib working in Production Section
provided the information regarding the production process and let us visited to all departments
involved in their manufacturing. They helped us to understand the process activities at each and
every level of production and showed us each plant used by the company. They also helped us
to understand the challenges faced by the company. Furthermore, the labour also helped us by
showing the actual process performed by each plant by operating it. One thing should be noted
that the company has all production on digital and electronic equipment. The labour is just to
operate the equipment. Even for transferring a wooden item from one container to another,
there are lifters by which the items are transferred from one process to another. Lacquering
section was the most interesting where vapours of lacquer are absorbed by the plant so that the
labour can be protected from side effects of lacquer. Each plant has a specific speed of
processing; however, it can be adjusted if the fast production is required. There are conveyer
belts attached with each equipment and plant, the items are also transferred from one process
to another with the help of these belts. A product passes through various steps and lastly is
converted to finished goods inventory. Then the packaging section packs the product, and after
packing it is put into cartons and are transferred to warehouse or the showrooms for the
customers who did not ordered yet. When customers put the orders to get the desired products,
it is given to them or supplied to them by the vehicles owned by the company. The company has
a large number of customers including individuals and corporate bodies. The company has no
competitors within Pakistan yet. It is a Sales Tax and Income Tax Registered Company and the
status of this company is Private Limited Company. The nature of its business is that of
Manufacturers and Exporters. However, it also provides services in Pakistan. There are about
Nine Hundred persons employed by Interwood Mobel Private Limited. The strength of the
company includes that it is one and only company that manufactures the furniture of every kind,
whether it has luxurious or average type. The company has a great opportunity of growing its
business within Pakistan, till it will face its first competitor in Pakistan. The company has more
than one sectors of market, including local and foreign banks, hotels, embassies and business
houses. The products that it manufactures are wood floors, office furniture, doors, kitchens,
computer furniture, kitchen accessories, home furniture, school furniture, restaurant furniture,
interior design works, wardrobes, laminate floors and lamps. It gives eight years warranty to its
customers for the products it manufactures. Interwood Mobel Private Limited is also registered
under the ISO 9001:2000 certification (attached with this report) and has provided with a
certificate for that. It has also provided with registration certificate under BS 476 part II certificate
for Q-marks fire doors. The company provides a complete one window solution for the home
furniture items. The persons whom the members met, also has provided the video CD, in which
the process of manufacturing and finishing is shown in detail. The complete process of all
departments and the process of finishing the final products is shown in that video, which will be
presented in front of public of MBA, with the permission of the instructors. Interwood Mobel
Private Limited has a clear objective, goal and mission to give the best possible services to its
customers and clients. This company has a lot of benefits and opportunities to grow in Pakistan
as well as other foreign countries. The company serves its customers and clients to achieve a

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remarkable status in the world. Ultimately it is serving our country and making our country a
prosperous nation. We need such companies which are the resources of our country.

Introduction to the Company

THE WONDERFUL WORLD OF WOOD; “INTERWOOD” produces kitchens, doors


wardrobes, office furniture, home furniture and wood flooring. Interwood also sells imported
laminate flooring with 8 years warranty and imported kitchen appliances. In fact all our products
are covered by our standard warranty.
All Interwood products are made to highest quality standards (Comparable to the best in
the world). State of the art seasoning plants, machinery from Italy and Germany and the skill,
motivation, enterprise and dedication of Interwood personnel result in products whose Quality-
Price Ratio is unmatched by any Pakistani or Imported Product.
Interwood is generally perceived as a company catering for the very rich. Nothing could
be farther from the truth. Take for instance Budget Home Package. It is the best offer ever made
and if you look at the 16 doors, one kitchen, 3 wardrobes and laminate floor, you will be really
amazed at the quality and unmatchable finish of these products.
Similarly for the information of our friends who buy imported kitchens etc. Interwood
prices (with similar specifications) are between 1/3rd and half the prices at which you buy an
imported kitchen with equivalent, if not better quality.
There is no or little after sale service available in this industry. Usually, these kitchens
products are imported by Fly-by-Night importers who vanish after a few years and are not
available to provide the necessary after sale service. Interwood has a full fledge Customer
Service Department and provides service and parts even after years.
One should be careful about the claim that the kitchen/product is of Italian or other
European origin. Usually, only a minor part is from Italy/EU and the major portion is from
China/Local.
It is the only company in Pakistan which will give you a complete solution for your home
i.e. doors, kitchen, kitchen appliances, wardrobes, wood and laminate floors. It is One Window
Operation. You don’t have to hire a carpenter. You will be amazed to see the savings in time
and money and of course the Unmatchable Quality is a bonus. The story does not end here. If
you want to have your home finished tastefully and economically, you can do it with our home
furniture. Thus Interwood provides a complete One Window Solution for your home.
Interwood has a range/solution for every budget, that is, from the clerk to the CEO
everybody is taken off. The Budget Range takes care of the people looking for economic
solutions. The Crest Range is for people who want to be more elegant and can afford extra
expense. On top is the Executive Range for Executives and CEOs with Conference/Board
Rooms thrown in to serve ancillary functions.
Intewood has an exciting range of education furniture. Whether it is LUMS, the Staff
College, CBM Karachi, Gift University or St. Mary’s School, FC College, Rupali, Lahore,
Descon, Lahore, Haidri Homese, Lahore, Ibrahim Fibers Ltd. Lahore, UNDP, Atlas Bank, Lahore
School of Economics, Interwood has a solution for class rooms, Laboratories, Offices, Libraries,
Hostels and other furniture. This range is wide and varied; however, it also makes furniture to
client’s designs subject to reasonable quantities.
The versatility of Interwood is apparent from the fact that it furnished and did the interior
work of Parliament Building, Maldives; Karachi and Lahore Airport woodwork and furniture bears
the indelible stamp of Interwood.
Interwood is a Brand and Lifestyle which is affordable, aesthetically pleasing, durable
and comparable in quality and workmanship to the best in the world.

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Company Profile
Name of Company INTERWOOD MOBEL (PVT) LTD
Full Address 56-Sultan Mahmood Road, Shalimar Town
Lahore, Pakistan
Telephone No. +92-42-6549123
Fax No. +92-42-6549126
URL www.interwoodmobel.com
E-mail Address sales@interwoodmobel.com
Status Private Limited Company
Share Capital Rs. 65 million
Year of Establishment 1974
Income Tax Registration No. 1316337-0
Sales Tax Registration No. 03-10-9403-003-37
Bankers Allied Bank Ltd. (Corporate Branch), Lahore
Types of Activity Manufacturers/Exporters
Name of the Chamber of Commerce Lahore Chamber of Commerce & Industry
& Industry for which it is a member 11-Shahrah-e-Aiwan-e-Tijarat, Lahore, Pakistan
Membership No. 36177-A
ISO Certification ISO 9001-2000 Certified (evidence attached)
Product Range 1) Wood Floors
2) Office Furniture
3) Doors
4) Kitchens
5) Computer Furniture
6) Kitchen Accessories
7) Home Furniture
8) School Furniture
9) Restaurant Furniture
10) Interior Design Works
11) Wardrobes
12) Laminate Floors
13) Imported Kitchen Appliances
14) Lamps
Number of Employees 900
Name of Contact Persons A. Latif Malik
(General Manager)
Omar Farooq
(Production Director)
Khwaja Farooq
(General Manager Commercial)
Lahore Showroom:
Full Address 7-Babar Block, New Garden Town,
Lahroe-54669, Pakistan
UAN 111-203-203
Telephone No. +92-42-5832463
Fax No. +92-42-5838481
E-mail Address sales@interwoodmobel.com.pk
Name of the contact person Abdul Mustafa
(Sr. Manager Showroom)

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Karachi Showroom:
Full Address C-8-C, 26th St. Touheed Commercial Area,
Phase-V, D.H.A, Karachi, Pakistan
UAN 111-203-203
Telephone No. +92-21-58246314
Fax No. +92-21-5824316
E-mail Address sales@khi.interwoodmobel.com.pk
Name of the contact person Ali Farooq
(Director)
Islamabad Office:
Full Address House No. 454, Street No. 10,
Sector G-10/2, Islamabad, Pakistan.
UAN 111-203-203
Telephone No. +92-51-2538346
Fax No. +92-51-2100243
Cell No. +92-321-5152929
E-mail Address iwm-isb@iwm.com.pk
Name of the contact person Mrs. Saima Sayyad
(Manager)

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The Challenge
Interwood Mobel (PVT) LTD is the only company in Pakistan that produces all wooden
items such as wooden floor, office and home furniture and hotel furniture. The challenge faced
by the company is that of producing furniture for almost all kind of people and corporate bodies
and according to the needs of all businesses, offices and homes. Interwood has a solution for
marketing the new product, when it is introduced on the internet. Interwood has new and latest
plants for cutting, grinding and finishing the wooden items. It produces goods, which cannot be
manufactured by any other company, if any, producing the same products. The quality of
products introduced and launched by Interwood is unmatchable.

Company Analysis
Goals
The goal of Interwood Mobel (PVT) LTD is to give the customer best value for money.

Focus/Vision/Mission
Interwood Mobel (PVT) LTD strives to become a world-class manufacturer of furniture,
kitchens, doors etc. The company is committed to a constant improvement in the designs,
systems and quality of products. The earnest endeavor of Interwood is to upgrade the skill,
knowledge and standards of living of all employees to international standards.

Achievements
The Quality of the product introduced by Interwood is unmatchable with any Pakistani or
imported product. So, obviously the Unmatchable Quality of the product is a bonus for the
customers of Interwood.
The company has an ISO certification. It is the ISO 9001:2000 certified company. The
evidence of the ISO certification is attached herewith in appendix. It is also rewarded a trada
certification for Q-Mark fire doors which is also attached.

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Production Process Analysis
Process Activities / Departments
The company has 11 departments each doing a separate job. The step by step production is
done through these departments and at last, the finished goods are formed. The following
diagram shows the flowchart of Interwood Mobel PVT LTD.

Preparation of working drawings by the qualified & well experienced designers,


engineers & architects with the latest & modern design software Auto Cad &
IMOS. Preparation of Bills of Material & Packing Lists.

Sawing of wood by using most modern imported machines.

By vacuum, solar & conventional kilns. Moisture content up to 8-10%.

Cutting, plaining, pressing, lipping, boring, routing, dowelling, profiling and sanding
of wood and board materials on 21st century German & Italian CNC machines &
tools.

Assembly of furniture by a force of highly skilled artisans using imported German


glues and pneumatic tools for carcass assembly fixture, using German & Austrian
hardware.

Application of long life, non-fading imported Italian stains, lacquers, paints etc. in
dust free environment & spraying booths with automatic controls. Recently they
have added latest automatic CEFLA finishing line imported from Italy.

Fabrication of metal parts i.e. cutting, welding, bending, milling, turning and
hydraulic pressing on most modern machines.

Phosphating, electrostatic spraying and baking of metal parts / products.

Upholstery of sofas, chairs with best quality foam, fabric, leather / leatherite with
pneumatic staple guns.

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Proper packing of each product. Palleting of heavy products. Crating of fragile
items.

Storage of finished / packed items. Complete & safe delivery of goods.

Flowchart of Major Steps in Process


SUPPLIERS INPUTS PROCESSES OUTPUTS CUSTOMERS
Wood Supply Wood, Wooden Items
Company Wood Equipment, and Wooden Public
Labor Fixtures

Cause & Effect / Fishbone Diagram

Machine People

More Machines Majority Middle Class

Less Labor Quality More Machines Expensive

Quality More time on repair Less


Quality Know-
how
High cost of
Machine Less Labor Less Labor Small Local
Bulk Shops
Orders
High Turnover

Cause Effect
Analysis Complex
Process
Low More
Flexibility Scrap
More Process Cost High High Cost
Strict Quality Turnover of material
Control More Plants More
Production Quality
Automated Systems Imported Material

Methods Materials

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Run Chart / Major Works Executed*

70

60

50
(MILLION)

* This graph shows the major works executed by the company; The graph included the supplies
made to both individual and corporate. Green line shows the supplies to corporate abroad,

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Magenta shows the sales to individuals within Pakistan and Grey shows the sales to Corporate in
Pakistan.

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Opportunity Flow Diagram for one plant

Non Value Added Steps

Value
Added
Steps Yes
Take Plant
Wood in
Wait
Item Use?

No

Wor Check /
No No
k-ing Repair
well?

Yes
Put Wood
&
set/adjust

Push
Button on
Plant

Take
s Yes Adjust
Time Speed
?

No
Forwar Remove
d to
Wood
next
plant Item

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Blueprint Flowchart

S Custome Time period is F


T r Orders Customer given to I
Customer N
A Chooses Customer for I
approaches to Customer gets
R Design and the completion S
showroom his order
T Package of order H

Inventor
y (Start
Pro-
Show- Ware-
ductioin)
room house Package

Carp- Power
Design Saw Mill Season Machine entry Polish Metal Coat Upholster
Issue Tree

More Production

SMore Inventory Imported Material

More Customers
Complex
Production High Sales Bulk Orders
Process
Corporate Clients

Imported Material

High Cost Quality Focus

Less Labor/More Machines


Issues and Problems
Drawbacks in the Process adopted
While conducting the process analysis, Syndicators found the following drawbacks in the
Production Process of Interwood Mobel PVT LTD:

1. A few plants found stopped during production and their processing was transferred to
alternate plants. Upon asking how much time is required to repair a plant, the concerned
person informed that about 4 to 5 days are required to repair it. Syndicators noted the
point and decided to include it in drawbacks. If the plants were working, then the work
was running on both the alternate and existing plant. It is clear that these stopped plants
may stop the production or the production may take more time as compared to the
standard time required. The stopped plant showed that the repair service of plants is not
in healthy condition and was not appreciable.

2. It was also noted that as the departments are at more length from each other, the
transfer of items from one department to another may take more time. The area of
production house is so much wide that it takes more time to take items from one plant to
another even in the presence of conveyer belts. Furthermore, the adjusting of items at
each plant takes longer period of time. The conveyer belts are not attached with each
other so it takes time to set the item at each and every plant.

3. Since there is very fast production, still it needs to make production faster. The plants
are not joined with one another through conveyer belts, therefore, production is taking a
lot of time wastage. This may affect the Just In Time (JIT) production.

4. Scrap and wastages are not properly managed and there is no proper system to
reduce the scrap. A few of scrap is used in various other works, but the remaining is
sold.

5. Less labor is working in production unit. As a result, the company is not contributing
so much in reducing the unemployment rate from the country.

6. The strict quality control is beneficial for the company in one hand, but to the other, it
does not allow to introduce flexibility in the production process. The process must be
flexible enough so that the production will not stop even in environmental and climate
changes.

7. High turnover, more equipment, high machinery cost and advanced technology
makes the production process complicated and also difficult to manage. However on the
other hand, it reduces the labor cost.

8. The public does not even know the name of the company. Upon asking, the
concerned person replied that majority of our people are middle class group. So they
prefer to buy the furniture from other small local shops and cannot afford the prices of
our company. The company has high prices because it cannot compromise on quality.
High quality standards and 8 year warranty requires high price range. Therefore middle
class does not prefer to buy from them. However, Elite Class people purchase the
products of Interwood with great interest.

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9. After the goods are converted into finished, their handling is manual after packaging.
The finished goods items also contain some sensitive ones, like glass items (glass
doors, glass windows etc.). Their manual handling is not suitable and not appraisable.

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Suggestions / Recommendations
Syndicators group, after visiting of the production unit of Interwood and informing about
the problems resulting during the processing now makes some suggestions and
recommendations for the company.

1. Although the whole production is on plants and automated systems, still there is a
need to improve the process by continuously and regularly check and maintenance over
the plants. The plants should be examined carefully before starting the production
everyday. Furthermore, competent people should be hired to repair the plants who can
repair the plants by taking less time. In this way, most of the time wasted can be
minimized.

2. Conveyer belts should be attached to one another so that adjusting of items at each
plant can be prevented. The plants should be installed in such hierarchy so that the
items can move automatically from one plant to another. This will help to achieve JIT
(Just In Time) Production.

3. The scrap which is sold out, should be used in other useful works. This scrap can be
recycled and used again and again for many more useful work.

4. Competent people should be hired for running and maintenance of plants, so that the
company can contribute in employment activities at nation’s level.

5. The company should prepare a system for abrupt change in climate condition or
environmental changes. New plants should be owned with the increasing technological
changes.

6. The marketing department should work hard for the promotion campaigns so that
such a large business will be introduced to a huge population that does not know the
company’s identity.

7. Like other plants and automated systems, the handling of finished goods after their
packaging must also have the automatic system so that the loss can be prevented at its
maximum level. Manual handling does not leave a good impression after such a huge
automated systems.

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Appendix/Annexure
Pictures

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Achievements/Certifications

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Bibliography/References
The followings are the reference material, from where the information is collected:
1. Production Process - Physical Visit by Syndicators
2. Company Introduction, Run Chart - Company Profile (Privided by the company)
3. Process Stages, Achievements/Certifications - Compnay URL:
(www.interwoodmobel.com)
4. Production Process - Video CD (Provided by the company)

Evidences
Concerned persons & Designations
1. Mr. Anwar Bhatti (Production Manager)

2. Mr. Abdul Rouf (Production & Planning Officer)

3. Mr. Azher (Quality Supervisor)

4. Mr. Talib (Complaint Supervisor)

5. Mr. Abdul Rehman (Referrer)

Contact Numbers
1. Mr. Abdul Rouf +92-323-8453028

2. Mr. Abdul Rehman +92-322-4329885

Email Address
m.ali@iwm.com.pk

abdul.rehman19@yahoo.com

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