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PRODUCTION AND OPERATION MANAGEMENT|SEMESTER PROJECT

Packages Limited
Packaging Industry

Aneeq Ahmed, Minaam William, Muhammad Ali Hashmi, Osama Hasan

Fall 10 Instructor Prof. Dr. Nawar Khan

School of Chemical and Materials Engineering (SCME) National University of Sciences and Technology (NUST) H-12 Campus, Islamabad

SUMMARY
Packages limited was established in 1957 as a joint venture of Ali Brothers of Pakistan and Akerlund and Rousing of Sweden, to convert paper and paperboard into packaging for consumer industry. Over the years, Packages has continued to enhance its facilities to meet the growing demand of packaging products. In 1968, with IFC participation, Packages integrated upstream by establishing a pulp and paper mill with a capacity of 24000 tons per year based on waste paper and agricultural by-products. It stands today as one of the biggest manufacturing local companies in Pakistan. Packages offers premium packaging solutions for exceptional value to individuals and businesses. Giants such as Pakistan Tobacco Company and Unilever are among its customers. The company offers various types of paper and board products, corrugated cartons, flexible packaging products and personal hygiene products such as tissues. With a longtime credit rating of AA, growth of sales at 15% and a dedicated and top-quality management team the company has a very bright future and will continue to dominate the industry. In 1968, after going public Packages established a pulp and paper mill having capacity of 24000 tons per year and also enhanced its converting capacity of 24000 tons. With further periodic participation by 1FC and others such as PICIC, DEG and SWEDFUND, etc., the paper and board production capacity increased to 100,000 tons per year by 2003 and conversion capacity to 70,000 tons per year. In 2005, the company tripled its capacity by investing in the new paper mill Bulleh Shah Paper Mill in Kasur.

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ACKNOWLEDGEMENTS

We are thankful to Almighty Allah for His unlimited blessings and bounties; for keeping us sane, sound and successful, Our parents for all their support and trust in us, Our Instructor Dr. Nawar Khan, for all his guidance and appreciation, Mr. Muhammad Akram (Industrial Relations Manager), Mr. Hassan Asif (Quality Assurance Manager), Mr. Shahzad Murtaza (In charge Stores and Inventory Department) at Packages Limited Lahore, Saliha Akram at NUST Institute of Environmental Science and Engineering (IESE) for all their support, coordination and time, and all our teachers, friends and colleagues for their help in completion of this report.

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TABLE OF CONTENTS
SUMMARY .............................................................................................................................................................. I ACKNOWLEDGEMENTS .......................................................................................................................................... II TABLE OF CONTENTS............................................................................................................................................. III 1 2 INTRODUCTION ............................................................................................................................................. 1 BACKGROUND ............................................................................................................................................... 2 2.1 Over the Years ..............................................................................................................................................2 2.2 Corporate Structure .....................................................................................................................................4 2.3 Products .......................................................................................................................................................5 2.3.1 Paper & Board ..........................................................................................................................................6 2.3.2 Carton Business Unit ................................................................................................................................7 2.3.3 Corruwal Business Unit ............................................................................................................................8 2.3.4 Flexible Business Unit ...............................................................................................................................8 2.3.5 Consumer Products ..................................................................................................................................9 2.4 Organogram ...............................................................................................................................................10 3 PAPER MAKING PROCESS ............................................................................................................................ 11 3.1 Raw Materials ............................................................................................................................................11 3.2 Pulp Making ...............................................................................................................................................12 3.3 Layering/Bonding .......................................................................................................................................12 3.4 Forming ......................................................................................................................................................12 3.5 Coating .......................................................................................................................................................12 3.6 Finishing .....................................................................................................................................................13 3.7 Paperboard.................................................................................................................................................13 3.7.1 Categories ..............................................................................................................................................14 4 PLANNING DEPARTMENT ............................................................................................................................ 15 4.1 Functions ....................................................................................................................................................15 4.1.1 Link between Marketing and Production ...............................................................................................15 4.1.2 Optimizing the Available Capacity .........................................................................................................16 4.1.3 Preparation of Loading Chart ................................................................................................................16 4.1.4 Other Functions......................................................................................................................................16 5 PRODUCTION DEPARTMENT ....................................................................................................................... 18 5.1 Production Procedure ................................................................................................................................19 5.2 Packaging Division ......................................................................................................................................20 5.2.1 Procedure: ..............................................................................................................................................22 5.2.2 FLEXIBLE PACKAGING DIVISION (FP) ......................................................................................................22 5.2.3 Off-Set Printing Department ..................................................................................................................23 5.2.4 Corrugated Department.........................................................................................................................24 5.3 Paper and Board Mill Division ....................................................................................................................27 5.3.1 Production Procedures ...........................................................................................................................28 5.3.2 Pulp Section............................................................................................................................................28 5.3.3 Paper Section .........................................................................................................................................30

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6 RESEARCH, DEVELOPMENT & CONTROL DEPARTMENT ............................................................................... 32 6.1 Research .....................................................................................................................................................33 6.2 Development ..............................................................................................................................................33 6.3 Control .......................................................................................................................................................33 6.3.1 TO- DO List of Quality Control ................................................................................................................34 6.3.2 Rubber Section .......................................................................................................................................35 6.3.3 Physical Paper & Polly Packing Section ..................................................................................................35 6.3.4 Pulp Section............................................................................................................................................35 6.3.5 Chemical Section ....................................................................................................................................36 6.3.6 Development Section .............................................................................................................................36 6.3.7 Microbiology Section .............................................................................................................................36 6.3.8 Library ....................................................................................................................................................36 7 8 MANAGEMENT INFORMATION SYSTEM ...................................................................................................... 37 ENVIRONMENTAL POLICY ............................................................................................................................ 39 8.1 8.2 8.3 8.4 9 Recycling Paper ..........................................................................................................................................39 EFFLUENT AND WASTE MANAGEMENT .....................................................................................................39 Water Management ...................................................................................................................................40 Independent Energy House ........................................................................................................................40

RESULTS ...................................................................................................................................................... 41

APPENDIX A ......................................................................................................................................................... 42

1 INTRODUCTION
Packages Limited is the outcome of an idea to develop and build local skill and competence in sophisticated packaging industry based upon indigenous raw material and talent. Established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund and Rausing of Sweden, Packages Limited provides premium packaging solutions for exceptional value to individuals and businesses. It started its business/production in May 1957, as a private Limited company with a total of about 300 employees. Initially the emphasis was on conversion business and raw material was purchased from outside. Encouraged by the response and confidence reposed by the industry at large, in 1965 it was decided to convert the organization into a Public Limited Company. It is the only packaging facility in Pakistan offering a complete range of packaging solutions including offset printed cartons, shipping containers and flexible packaging materials to individuals and businesses world-wide. Our clientele includes illustrious names such as Unilever and Pakistan Tobacco Company, who have been our customers for over 50 years. It employs over 3000 people and had sales of over US $ 100 million in 2004. Listed on all three stock exchanges in Pakistan, It has maintained a long-time credit rating of AA. Its joint ventures and business alliances with some of the world's biggest names reflect the forward-looking strategy of continuously improving customer value through improvements in productivity. It has always been at the forefront of new developments in packaging research and has pioneered several innovations, including the use of wheat straw as a raw material for paper and board manufacture. The on-site paper and board mill, established in 1968, has constantly increased its production capacity. A new plant with even greater capabilities has also started functioning near Qasur. With more than 50% of the total share in the industry, Packages Limited is the industry leader. It can be thus safely assumed that in this regard, Packages Limited remains unrivalled among all of its competitors like Century Paper Mills, Adamjee Paper & Board Mills Ltd., ABN Packaging International, Arsam Pulp & Paperboard Industries etc.

2 BACKGROUND
2.1 Over the Years
Packaging Limited was born out of a dream to set up in Pakistan industries of excellence based on local raw material and talent. Packages Limited is a leading packaging manufacturing company of Pakistan. It is the sole largest industry in Pakistan serving about 35% needs of the country. Syed Baber Ali Shah, who was the first managing director of Packages Limited went to Sweden in 1954 to negotiate the contract with AB Akerland & Rausing of Sweden. AB Akerland and Rausing had been the leading paper converters in Europe. Pakistanis needed technical collaboration with their Swedish partners. In the beginning, the first problem was the selection of the site. Finally, Lahore was selected due to the following reasons: Easy availability of workers. Easy availability of raw material. Easy transportation all over the country.

A B Akerlund & Rausing packaging company brought machinery and expert technicians while the Ali Family provided the necessary capital, land, labor, local expertise and management. Packages Limited started operating in May 1957 with a paid up capital of Rs. 4.94 million as a joint venture between the Ali group and Akerland & Rausing of Sweden. Initially, it produced cartons for the cigarette, tea, confectionery, soap, pharmaceutical products and other consumer products. These cartons were produced from paper and board supplied from mills in Chittacong, Khulna, Charsadda and Peshawar. However the quality and quantity of paper and board supplied was inadequate. Over the years, the company continued to enhance its facilities to meet the growing demand of packaging products. Additional capital was raised from sponsors, International Finance Corporation and from the public in making the total paid up capital to Rs. 31 million in 1965. As a first step, Packages Limited commissioned its own paper mill in 1968 having production capacity of 24,000 tons of paper & paper board based on waste paper, agricultural waste, wheat straw and kahi grass. As the demand continued to grow, it led the company to expand and by the end of 1998 its annual capacity was increased to 50,000 tons of paper & board and corresponding converting ability.

3 Since 1982, Packages Limited has a joint venture in Tetra Pak Pakistan Limited with Tetra Pak International to manufacture paper for liquid food packaging and to sell Tetra Pak packaging equipment. After Tetra shape, it also introduced brick shape packing. Both shapes are very popular among liquid preservation industries. The main industries covered by Packages Limited are, Tea Industry, Tobacco Industry, Food Industry, Pharmaceutical Industry, Sweets & Confectioneries, Soap Industry, Shoe Industry, Tissue Industry In tetra Pak Pakistan Limited Packages Limited has 45% shares, 6% shares owned by Syed Baber Ali Shah and 49% shares owned by Tetra Pak International. Smart Governance Ethical Behavior Work Environment

Customer Satisfaction Conservation

Our People

FIGURE 1 CORE VALUES

Since 1957, Packages Limited has been producing inks for its own consumption. In 1993, the company agreed to form a joint venture with equity participation from Coates Lorilleux, worlds second largest printing ink manufacturer to produce inks for Packages Limited and the general market. Packages Limited own ink manufacturing facilities now transferred to new company, Coates Lorilleux Pakistan Limited. In July 1994, Coates Lorilleux Pakistan Limited; in which Packages limited has 55% ownership, commenced production and sale of printing inks. Also in 1993, a joint venture agreement was signed with Mitsubishi Corporation of Japan for the manufacturing of polypropylene films at the industrial estate in Hattar, NWFP. This project, Tri-Pack Films Limited, commenced production in June 1995 with equity participation by Packages Limited33%, Mitsubishi Corporation, Altawfeek Company for Investment funds, Saudi Arabia and general Public.

4 Another important service department of Packages Limited is its Power Plant. In 1967 they set up 6 MW power plants, but to ensure a continuous and dependable supply of power for its production lines, Packages Limited has also established its own 10 MW power plant in 1991, the cost of which was 180 million rupees. Packages Limited save a lot of money in this regard. In the field of consumer products, Packages Limited has shown tremendous potential and commendable talent. Consumer Product Division provides 12% share of the total sales. The consumer products of the company are Rose Petal and Tulip tissues. The production of Rose Petal was first introduction of tissue paper industry in Pakistan. Rose Petal and Tulip have more than 80% share of tissue paper industry in Pakistan. Other consumer products are paper Cups, paper Plates, Paper Napkins, Paper Hot Cups and Wet tissues of Rose Petal have been introduced in the market in 1992. Now Packages Limited is exporting its managerial skills & technical expertise to the third world countries like Indonesia, Tanzania, Kuwait, Saudi Arabia, Nigeria, Zambia, Somalia & Russia. It has also started the export of tissues to Iran, Bangladesh, Sri Lanka, Indonesia, United Arab Emirates and Maldives. Packages Limited has a large workshop. This workshop is capable of making, repairing and replacing the damaged parts. The Research, Development & Control Department were also established to ensure the quality and standard of the products. Starting with a work force of 500 workers, now Packages Limited is having 2674 employees. In this regard, a separate Personnel Department is there, to look after the problems of the workers. Today Packages Limited is considered to be a leader in Packaging field in Asia. Packages Limited has completed the balancing, modernization, replacement (BMR) and expansion program, which began in 1994. This has enabled the company to minimize capacity constraints and improve quality to meet local and foreign competition as well as improve its environmental protection facilities.

2.2 Corporate Structure

Packages Limited has three main manufacturing divisions: The Paper and Board Division, which manufactures paper and board from a mixture of wood, pulp and other raw materials, and treats effluent

5 The Packaging Division, which takes materials from the Paper and Board Division and converts customer ideas into finished products The Consumer Products Division, which manufactures off-the-shelf branded consumer products Packages Lanka is a joint venture between Packages Limited and the Print Care Group of Sri Lanka, and DIC Pakistan a joint venture between Packages Limited and Dainippon Ink and Chemicals, Inc. of Japan.

Paper and Board

Packaging

Consumer Products

FIGURE 2 CORPORATE STRUCTURE

2.3 Products
The different kinds of paper produced at the paper and board division include high gloss writing paper, poster paper, computer paper, fluting paper, and liner for shipping cartons. Most common board varieties include Duplex Board, Bleached Board, Food Grade Board and Card Board. A specialized liquid packaging board is also produced to cater to the need of customers who manufacture and supply aseptic packaging for milk, cream, oil, fruit juices and other food products. In brief: Paper (Writing Paper, Machine Glazed/Special Poster Paper, Fluting Paper, Liner For Shipping Cartons, Corrugating Medium Paper, Wood-free Writing/Printing Paper;) Paperboard (Carton Products , Corrugated Cartons) Packaging Materials (Packaging Films and Laminates ) Consumer Products (Tissue Papers, Personal Hygiene Products) Finished and Semi-finished Inks

It also offers: Specialized Services (Rotogravure Printing and Sleeve-making)

2.3.1 Paper & Board

Packages Limited is producing high quality paper and board since 1965 using environment friendly manufacturing processes. It specializes in making a variety of duplex boards and paper. The products are tested for high performance in terms of strength, stiffness and gloss. From coffee cups to the books we read, from Tetra Pak juice containers to huge shipping containers, paper and board products touch our lives in a thousand ways every day.

2.3.1.1 Paper
Packages Limited produces: high gloss writing paper machine glazed / special poster paper fluting paper liner for shipping cartons corrugating medium paper wood-free writing/printing paper

Paper quality and weight is determined by the client's specific requirements and Packages ensures this is carried out to the exact specifications provided. Paper is available in the following weights:
Type of Paper Test liner Corrugated medium Paper/Fluting Wrapping Paper High gloss writing paper Poster Paper Weight (g/m2) 125-220 120-170 70-90 58-68 40-90

2.3.1.2 Board
Packages Limited manufactures several types of board. Food Board, a basic raw material in liquid food packaging, is being manufactured since 1979 for Tetra Pak Pakistan Limited. This material is used in making aseptic packaging for milk, cream, oil, fruit juices and other perishable food items.

7 Some of the board products are: liquid packaging board food grade board duplex board / chipboard bleached board tobacco board and cardboard liner board Board is available in the following weights:
Type of White Board Bleached Board Duplex Board Cardboard Liquid Packaging Board Poster Paper Weight (g/m2) 195 - 205 150 - 450 160 - 250 150 - 290 40 - 90

2.3.2 Carton Business Unit

The carton business unit is an integral part of the manufacturing facilities at Packages Limited. Constant improvements in technology help our customers exert exact control over each stage of the manufacturing process. Our customized packaging and consistent quality give all our cartons superior shelf visibility. The foundations of this business line were laid about 50 years ago with the formation of the offset printing department. Carton Business Unit production experts work closely with prepress and technical staff to deliver a durable, aesthetically pleasing and technically sound package to the customer. The total board consumption of the carton line is around 18 - 20 thousand tons per annum. The strong backward integration within the Packages value chain has given the carton line a competitive edge in terms of backend material availability. Prompt material availability reduces turnaround time and ensures timely delivery.

8 Clients include Food and Beverages Soap / Detergent Pharmaceuticals Match Electronics Shoe Tobacco Paper Cup

2.3.3 Corruwal Business Unit

Packages Limited has been manufacturing corrugated cartons since 1974. Produced in a variety of sizes, these cartons are of great value for in-country goods distribution and export. Capacity increase and product development continue to be of high priority. Corrugated cartons are of great value to the diverse portfolio of customers for secure transportation of their products to local and international markets. With the commissioning of our corrugated plant in Karachi, we have the capability of producing seven million corrugated cartons to cater to the ever-increasing demand of high quality shipping cartons. Clients include: Textile Food Tobacco Soap Detergent

2.3.4 Flexible Business Unit

With improved barrier properties and lower cost compared to rigid packaging, flexible packaging is steadily gaining importance in the packaging industry. Our flexible line makes high quality packaging films and laminates, and offers other specialized services such as rotogravure printing and sleeve-making. Flexible packaging combines different plastic films, aluminum foil and paper to produce laminates of two or more layers for providing layered protection against moisture, gases and

9 odors. Used where colorful package design and preserving product quality are important, such as in the food and pharmaceutical industries, flexographic printing offers economy with quality. Clients are: Soap Tobacco Tea Food Diary Ice-Cream Milk powder Confectionery Shampoo Pesticide Pharmaceutical

2.3.5 Consumer Products

A range of products for those annoying problems in life: our consumer products feature great ideas for making everyday living easier and more comfortable, both indoors and out. Tissue Products Personal Hygiene Paper Products

Reflecting our core values of exceeding customer expectations through innovation, leadership and teamwork, the Rose Petal and Tulip brands continue to hold over 80% of the domestic market share of the tissue paper market in Pakistan. We also have a leading market share in the away-from-home business: we supply custom-printed boxes, table napkins, coasters and paper cups to institutions such as hotels, fast food chains, restaurants, businesses and the airline industry. Corrugated cartons are of great value to our diverse portfolio of customers for secure transportation of their products to local and international markets. With the commissioning of our corrugated plant in Karachi, we have the capability of producing seven million corrugated cartons to cater to the ever-increasing demand of high quality shipping cartons.

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2.4 Organogram
Board of Director

Chairman

Advisor

Managing Director

Executive Board

General Manager

Deputy GM
Mill Manager Marketing Manager Consumer Product Manager CSD Manager Commercial Manager Sales & Product Manager Stores & Inventory Manager Group Brand Manager

Project Director BSPM

BU Carton Flexible Corruwall Rubber Manager

Finance Manager Tech Manager Mech Power ERP manager

QC Manager

IR Manager

R&D Manager

HRD Manager Manager Tissue Production I/C CPD Production

Liaison & Admin Manager

IP Manager

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3 PAPER MAKING PROCESS

3.1 Raw Materials
TABLE 1 PROCESS RAW MATERIALS

Raw Material Alum

Hard Wood Bleached Hard Wood Soft Wood Unbleached wood Bleached wood Recycled waste paper Straw Bleached Straw Wheat Straw Pulps Bleached hard wood pulp Bleached straw pulp Unbleached wood pulp Mechanical pulp Waste paper pulp Shredded tetra (BCTP)-Bleached Chemical Thermomechanical Pulp Kraft Unbleached Kraft pulp olympic Unbleached Kraft pulp simpson tacama

Explanation Assist in sizing the paper, making it somewhat water resistant so that inks did not "run" or spread uncontrollably. 0.05 inches (length) Hardwood fibers fill the sheet better and therefore make a smoother paper that is more opaque and better for printing. 0.13 inches (length) e.g. Pine and spruce which have typically long fibers Recycled material is collected and sorted and usually mixed with virgin fibers in order to make new material Straw is pulped to make paper

Pulp when suspended in water becomes dispersed and more pliable and thus can be laid down on a screen to form a sheet of paper.

Shreds of board use in tetra packs Pulp made using some hybrid processes The Kraft process describes a technology for the conversion of wood into wood pulp consisting of almost pure cellulose fibers.

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3.2 Pulp Making

The material to be used for making paper is first converted into pulp (a concentrated mixture of fibers held in liquid). As many of these fibers come from natural sources, e.g. plants, this process often requires many stages of separation and washing. Once the fibers have been taken out, they may also be bleached or dyed to alter the appearance of the final product.

3.3 Layering/Bonding
The pulp mixture is diluted with water resulting in very thin slurry (gooey liquid). This dilute slurry is drained of water through a fine mesh/moving screen. Water is also removed through gravity, vacuum action, pressure and heat. A watermark may be impressed into the paper at this stage of the process (a distinguishing mark pressed onto the paper during manufacture; visible when paper is held up to the light.). As water is removed, cellulose fibers bond to form a web of paper (cellulose fibers are fibers that come from plant cell walls and contain glucose, which is a polymer).

3.4 Forming
The moving web is then pressed and dried into a continuous sheet of paper. Most mass produced paper is made using a continuous process to form a reel or web.

3.5 Coating
Coating, the next stage, is the application of a suspension (layer) to the paper surface. It may be performed on the paper machine or on a separate off-machine coater. Coating may be on one or both sides and is followed by drying. Raw paper that contains only pressed and dried pulp is very absorbent (soaks up water, like a sponge) and does not provide a good surface upon which to write or print. Thus a huge variety of additives (chemicals) are employed to add desired properties (characteristics) to the paper. These are applied in a coating called the size. Sizing agents are often polymers designed to provide a better printing surface. The most commonly used type of polymer is starch (a natural polymer), but there are as many types of polymer employed as there are types of paper. Coatings can also be applied to the top layer of paper to improve the printing surface by making it smoother. The texture of raw paper is rough, and so to achieve greater smoothness, coatings

13 consisting of latex or other binders and fillers such as kaolin or calcium carbonate (types of clay) are used. Glossy, silk or matt finish papers such as magazine paper are made in this way. Additionally glossy or textured surfaces can be applied using a process called supercalendering, in which the fresh rolled paper is run through an additional series of rollers to imprint the desired texture. The glossy effect is achieved at the end of the printing process, by adding a clear layer over the printing.

3.6 Finishing
This covers the finishing of pulp, paper and paperboard articles. In this process, the reeled up paper is converted (trimmed, transferred to smaller reels, cut into sheets, etc.) for sale or further processing.

FIGURE 3 PROCESS FLOW DIAGRAM

3.7 Paperboard
Paperboard, within the commercial papermaking industry, is simply the term used to describe a thick sheet of paper. Because of this simple definition, there is some confusion in the industry as to what qualifies as paperboard. Thickness (caliper) and bulk are significant aspects in paperboard manufacture, as the end product must be able to withstand the bending forces of packaging, load carrying, shipping etc., while still maintaining their shape. Consequently, these

14 paperboard products are usually comprised of two or more plies to provide the required stiffness. Plies are the term used to describe layers of paper. Within the industry, paperboard is referred to by weight (pounds per square foot or grams per square meter), by thickness (by thousandths of an inch, or 'points' - i.e. 0.009" thick paperboard is also know as 9-point) or by name (food board, corrugating medium, boxboard etc.).

3.7.1 Categories
Paperboard is a generic term, mainly associated with boxboard (multiply board), but can also apply to corrugated board. Corrugated board comprises two main classifications: linerboard and corrugating medium, used almost entirely in the manufacture of shipping cases. Linerboard, which is hard, strong and firm is manufactured in two forms: Kraft liner (produced from Kraft pulp) and recycled liner (made from recycled fibers). Fluting is the wave-like material used as the middle ply in corrugated shipping cases. The combination of linerboard on the outside and fluting in the middle, results in a light and strong finished product, known as corrugated medium. Boxboard may be uniform in substance and quality throughout, or it may emerge from the mill in a single sheet composed of layers made from different types of pulp. Boxboard is of three types: folding, set-up and miscellaneous boxboard. Folding boxboard is made into products such as detergent boxes and milk or juice containers. For containers that will carry products to be ingested, other processes may be required such as the addition of aluminum foil to block out light and oxygen, in order to keep the contents fresh. Set up boxboard is used when a more rigid container is required, for example a jeweler presentation box.

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4 PLANNING DEPARTMENT
To increase our efficiency, we should plan with excellence. Planning department is one of the most important departments in an organization. Its main functions are to plan huge operations. In Packages the planning department is also playing an important role. The Planning Manager controls the department. The work of planning department is initiated from the industrial marketing department. When the orders are placed to the marketing department, they send out the ISO (Internal Sales Order) to the planning department. An ISO is an internal document on which the information regarding the sales or order is mentioned. Its main function is to transfer the information to the various departments involved. The contents of the ISO provide the following information. 1. Whether it is a new job or old one. 2. Specifications of the routine order i.e. color, size and quantity etc. If it is a new order then this order is first sent to the Art and Camera Department for designing the artwork of the new job. If the job is repeated then there is an approved sample by the customer. The planning department after receiving this ISO along with the sample sends it to the production department.

4.1 Functions
The two main functions of the Planning Department are following:

4.1.1 Link between Marketing and Production

The Planning department acts as a link between Marketing department and the production department as there is no direct contact between the two departments. Planning receives marketing information from the Marketing department and converts it into the Production language i.e. when the orders are placed to the marketing department, the information regarding the order is transferred to the planning department where they design and plan the product according to the specifications required by the customers.

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4.1.2 Optimizing the Available Capacity

To optimize the capacity means to utilize the manpower, machines working hours and material Educate ultimate objective of the Planning department is to improve and maximize the profitability. Yearly targets are set during the annual Sales Conference that is held in the month of December. In the sales conference the next five-year targets are set and the last years performance is reviewed. The next years projections are also set in the conference. In the five-year plans the shortfalls which are manpower, materials and machinery are reviewed. Top management is involved in long term planning short term plans which constitute a year are reviewed every quarter.

4.1.3 Preparation of Loading Chart

For the optimum utilization of the machine time and personnel, loading chart are prepared by the planning department. These loading charts provide the information that when the job will be completed and will be ready for dispatches. It is mentioned in weeks and as week numbers i.e. total weeks 1 to 52. Time is spend on printing, cutting, folding, gluing and packing is calculated and the planning department informs the marketing department the exact time of completion and delivery for the respected order. Planning department informs the customer through marketing department to check there stocks properly ignored to avoid any emergency because emergency orders increase the wastage. It can be because of non-availability of specific requirement of paper and board. The planning department also provides information regarding production machines, their capacity, numbers of colors size etc. to marketing department. Information regarding any machine, which is out of order, is also provided to the marketing department, so that any orders related to that particular machine may not be expected. They also provide the information regarding the production capacity so that they are in a good position to analyze the order.

4.1.4 Other Functions

The other functions, which are carried out by the planning department, are as follows: Maintenance of machinery etc

17 To sent daily production reports to the top management Overcoming the complaints of the customers and marketing Department To plan the long term and short term plans for minimizing loss Pursuance of jobs i.e. the current condition of the job To set the production targets for different departments on the basis of invoices Procurement of raw materials To organize the daily program i.e. completion of jobs from shift to shift

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5 PRODUCTION DEPARTMENT
The role of production department in a manufacturing concern is very important. In Packages the production department is also an important one. The goods for the customers are manufactured according to the desired standards in this department. This department is responsible to plan and organize the allocation of jobs to various machines in a way that their maximum capacity is utilized and that the delivery is given to the customer by stipulated date. The head of the production department is the production manager. The planning department also assists the department. The working procedures are based on week basis i.e. the total no of weeks in a year. The Production Manager looks after the production while the Planning Manager supervises the planning section. The heads of following departments are directly answerable to production manager and they have to present their special problems to him for advice and help: Paper Converting department Off-set Printing Coates Lorilleux (Ink Factory) Art Department Flexible Packaging Division Camera Department Coating Department Cutting & Creasing Department Lamination Department Folding & Gluing Department Dispatch Department Quality Control Department

The Production, Planning and control unit is also directly under the Production Manager and acts as the brain cell for him. Production Manager prepares internal planning of whole Paper & Board Division. It takes into account the total capacity of the machinery, and manpower. It also arranges the resources to attain maximum utilization. The other goal is to reduce the wastage of resources. The planning department acts as a coordinator between the Marketing and production

19 Departments. This is very Important in the sense that if there is no communication between the Marketing and Production Departments, a lot of confusion will be created.

5.1 Production Procedure

The sale staff is in direct touches with the customers and solicits business. After the business has been finalized, an Internal Sales Order (ISO) is sent direct to the Production, Planning and Control Departments for checking and planning out the production schedule. The planning officer and his staff communicate and correspond directly with sales staff. Sales staff also deals with Art Department in the initial stages of the business negotiations for the approval for the customer. The direct link of the Art Department ceases after the customer has approved the comprehensive. For submitting proofs of the made job reference to the Planning Department for finalizing the ultimate shape of the product. They also prepare mechanical for the Offset and Flexographic jobs. The jobs then move to Camera department who prepare the printing negatives followed by

production department who prepare the printing plates. The plates will either go to proofing press or for mass production to offset presses. The order received by the customer to Marketing Department may be: New job Modify the old job Repeating job

In order to develop a new job, to create a new product or to give special suggestions to the customer, sales staff takes help from Development Manager. Development Manager is in touch with all the facilities available at the factory and develops the projects until it is fit for mass production. The new job is first sent to Art and Camera Departments for the art & design to be printed. In case of repeat order, the Production Department will receive the ISO with the sample and the job will be sent to the planning department. Planning department issue a Job Card, as soon as the Job Card is made out, Paper & Board stores arrange material. The immediate requirements are indicated in the Job Card who has to be available in stocks while the long-range requirements are stocked up. Production Manager has to

20 foresee the future requirements. In case of new development, special materials are to be ordered. When substantial orders are expected in a particular line then raw materials will have to be ordered. For example, if there is trend of packaging polyethylene bags then polyethylene granules will have to be bought ahead of time. After Offset Department & Paper Conversion Department (PC) the job run through Cutting and Creasing, Folding and Gluing and is sent out through Dispatch Department. The jobs emanating from Paper Converting & Offset Department go directly to Dispatch Department. One important function of the Dispatch Department is to prepare Dispatch Notes for goods sent out whether by trucks or railway. Production department is further integrated into two divisions namely: 1. Packaging Division 2. Paper and Board Mill

5.2 Packaging Division

The packaging division is also called as the Paper Converting Division. Paper Converting Department was established in 1971. This department is second major department in Packages Limited. There are three types of printing in Packages Limited: Off-set Printing Flexo Graphic Printing Roto Gravure Printing

The Paper Converting Department converts the paper into packing material. By Flexo Graphic & Roto Gravure Printing we can get paper or bags in reel forms. It only uses paper and other Polly materials. No board is used in this department. Printing in the Paper Converting Department is several forms: Printing & Conversion of Paper Preparing & Printing Polyethylene bags Preparing Aluminum Foils

21 Fine printing is get from Roto Gravure printing, which is expensive, then Flexo method. The operations are carried out on various machines. Operations include printing polyethylene

extrusion, cutting, creasing, slitting, bag making, waxing etc. The Paper Conversion Department has the following machines. This department split into three sections with the following equipment: SECTION I Two Tea Bag Machines Two Bag Making Machines Four Printing Machines Two, Four Colors Machines One, Six Colors Machines (Only For Polyethylene Bags)

One Roto Machine (Two Colors) Three Rubber Stereo Making

SECTION II Six Slitting Machines One Embossing Machine Two Laminating Machines Four Packing Machines

SECTION III Two Extruder Two Polly Bag Machines One Extruder Laminator Machine One Gumming Machine

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5.2.1 Procedure:
Out of four Flexo Graphic machines, one is six colors and the rest are four color-printing machines. Hence, in Flexo graphic printing, Packages Limited has the facility to print from two to six colors. In July 1994 they break 1991 record and produce 4455000 meter printed packaging reels. There are six slitting machines, which are used for several kinds of slitting. In Flexo Graphic printing water based ink is used. The machine gets ink for one side and prints it on the other side. There are two polyethylene extruders, which manufacture Polyethylene both at low and high density

Polyethylene from granules, which are mostly imported from the U.S.A, Qatar, U.A.E. All printing machines are imported from Sweden and Germany. The management and operators believe that German machines are very good and their production is also more. The production of six color machines while using Polyethylene is from 1500 to 1700 meters of Polyethylene per hour. Four color printing machine prints about 2400 meters of paper per hour. Total production of these machines per shift is 30000 meters. Packages Limited manufactures and prints high density Polyethylene from 12 grams to 60 grams. And in case of low density Polyethylene it is 20 to 150 grams. In the Polly Section Polyethylene is made while in Waxing Section, the wax machine leaves a film of wax on paper. The Injection Molding machine in the Injection Molding Section makes plastic crates for milk transportation. But lately this section is not working as the demand for them is decreasing. In the Polly Lamination Section, Polly Lamination is done on papers surface to make the surface seasonable and shiny.

5.2.2 FLEXIBLE PACKAGING DIVISION (FP)

As the demand for sophisticated packaging grew, Packages Limited established Flexible Packaging Department in1986 that is fully equipped to manufacture high quality packaging. Molded from synthetic materials, rubber plates are used in Flexography. It uses the Roto Gravure printing technique. This Roto Gravure printing is best for food items, for this type of packaging 98% material is imported as a result it is the most expensive printing technique. One Six Color Roto Printing Machine One Lamination Machine

23 One Rewinding Machine Two Slitting Machines A Shrink Packing Machine

This printing is more expensive than stereotype printing. Metallic Cylinder is used in order to get fine printing. This cylinder picks the six color solvent based ink. The materials surface should be 100% glossy and smoother. It processes films whether they are paper, Polly or aluminum foil based, are laminated by containing two or more layers so as t give the required barrier properties against moisture, gases and odors. It produces packaging for soap and confectionery industry. The printing is done in very attractive colors and designs.

5.2.3 Off-Set Printing Department

This is the largest printing section of Packages Limited. This department has the largest share in the total Packages Limited sales, which is about 55%. There are 12 printing machines in this section which are used for printing on duplex board. There are two varnishing machines and one laminator machine. This printing facility is available from two to six colors. These machines use oil based ink. Normally they print cigarette cartons, biscuits, shoeboxes and tea boxes. In July 1994 they produced record production of 15200000 sheets. Offset printing is the art of printing from a flat surface. In this method the blanket and transfers to the sheet to be printing first receive the image. The blanket is made of rubber. Off-set printing is based on the principle that grease and water are not readily mix. Printing is done from Mattel plates. The image is put on the plate by a photo chemical process. The image area on the plate is processed so that greasy ink sticks to it but water runs off. The non-image area of the plate processed to pick up and hold water but not ink. Each Off-set machine has different cylinders that are, six color machines have six cylinders, five colors have five cylinders and so on. Each cylinder is used for the printing of a specific color. The cylinder takes the ink from the ink pan and prints it on the paper board running on the other cylinder. The paper goes forward and then another cylinder prints another color and so on, until the sheet is printed according to the right format. Regardless of the type, Off-set presses have four basic systems:

24 Feeder System Registration System Printing System Delivery System

The Duplex board is used in this form of printing. The weight of board is 240 to 490 grams. They use imported machines, these machines are made by PLANETA, M.A.N, HIEDLBERG. ROLAND machine is latest and print in five colors. ROLAND AND

5.2.4 Corrugated Department

For large scale packaging, Packages Limited has been manufacturing Corrugated Carton since 1971. These cartons produced in different sizes, are used for transporting consumer products from manufacturer to retail outlets. The share of Corrugated Department in Packages Limited total sales is almost 20%, which is second after the Off-set department. Corrugated cartons are of great value for the export of fresh fruits, garments and shoe a wide variety of gum tapes for sealing corrugated cartons are also manufactured. Corrugated department has two main wings Solid Board Corrugated Boxes

In solid board, the board is stitched in the form of boxes. In corrugated, boxes are made by stitching and gluing. This department producing almost 2.5 to 2.8 million boxes per month. The department packaging material provides greater protection against damages and pile ranges of products. For making a box following are the steps: Making three or five layers sheets from paper rolls. Cutting them in sheets according to the size required for package, which is to be produced. Cutting, Creasing, Printing, Folding and gluing these sheets to shape it into the box. Then also bundling these boxes in specifies number.

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5.2.4.1 Art Department

Packages limited have an art department in which qualified, efficient and talented artists and designers are working. The artists and designers in the department are very creative and for most of the time are involved in designing the new packages. Art department gives attention to the advice of the marketing and of the customer. There are two sections in the Art department. Creative (Comprehensive) Section Mechanical Section

5.2.4.2 Creative Section

The main function of this department is to create new designs in accordance with the customers specifications. When a new order is to be processed the sales officers contacts the creative section to provide basic information about the idea, number of colors and size etc. as requested by the customer. The designer then visualizes the idea and creates four or five Comprehensive designs. These designs (blank samples) are shown to the customers and the best one is selected. All the designs are made on computers. Then hard copy of these designs is made through the use of colored Laser Printer.

5.2.4.3 Mechanical Section

Approved designs from the creative section come in mechanical section. Designs in black and white are prepared in this section. Sensitive black and white films are used for better results for color photograph, which is called a transparency. Coordination between art designers and mechanical artists is very necessary for good designs. The mechanical is then sent to the Planning Department and is checked according to the limitations of the printing, cutting, etc processes. Then sample is sent to the Marketing Department for the customer approval. If the customer suggests some changes, then these changes are made and the whole process of checking is repeated. After the final approval of the customer, it is sent to the Camera Department for making negatives. Art Department uses MACINTOSH computers and other design equipment.

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5.2.4.4 Camera Department

Camera Department makes negatives and color separation from the mechanical by using cameras. Earlier this whole process was done by manually but recently Packages Limited has bought a sophisticated fully computerized color scanner. Then with the help of scanners and manually, it is found out that how much quantity of each color is required in the design. The department has increased its efficiency and quality of films. In the Camera Section, there are four colors use to get the negatives: Magenta, Yellow, Cyan, and Black. The number of negatives is subject to the number of colors used. If necessary, transparencies can also be made of the design.

5.2.4.5 Coating Department

When paper & board is manufactured in Paper & Board Mill, its both surfaces are coarse. For printing purpose, it must have smooth finish. For smooth finish, it is send to the Coating Department, where it is processed to a smooth, shinning, extra whit upper layer or both sides. Color coating of paper and board is also available.

5.2.4.6 Cutting and Creasing Department (Cc)

Cutting is the process which gives the carton its shape. For each new product a cutting die is prepared from drawings. This department is equipped with latest cutting and creasing machines having a great efficiency along with accuracy.

5.2.4.7 Lamination Department

This department has two machines which laminates the paper on single side or double side. This lamination process is started after printing, as the customer requirements.

5.2.4.8 Folding and Gluing Department (Fg)

Folding and Gluing is last process, which takes place before the completion of the carton. The printed material after passing through the cutting and creasing processes is passed on to the folding and gluing section. A carton, which cannot be glued on machine, is glued by hand

27 manually. Last examination of quality control is conducted in this department. From this department, the job is packed in boxes and sent dispatch department.

5.3 Paper and Board Mill Division

When the weight of one square meter of sheet exceeds 130 grams, it is termed as Board or Paper Board. Substance lower than 130 grams per square meter is called Paper. Board is basically used in the manufacture of cartons where creasing is also required. It provides necessary strength to the cartons, which are most commonly used in packaging of cigarettes, toiletries and detergents, tea pharmaceutical products, food and other consumer items. The paper and board mill started its production in 1968. At present the production capacity is about 50 thousand tons per year. It full fills the entire requirement of the packing division and surplus quantity is sold to the specific customers who are not their competitors directly or indirectly. The varieties of papers and board produced in mill are as follows. BOARD 1. M.G White Duplex Board 2. File Card 3. Ivory Card 4. White Card 5. Kraft Lined Board 6. Grey Chip Board PAPER 1. Writing And Printing Paper 2. Duplicating Paper 3. Imitation Art Paper

28 4. Off Set Printing Paper 5. Calendar Paper 6. M.G Brown Wrapping Paper 7. Twist Proof Paper 8. Tissue Paper

5.3.1 Production Procedures

Paper and board production starts from the testing and cleaning of raw materials which are wheat straw, rice straw, Kahi and waste paper etc. The production process gets into specialized sections. Initially the raw materials are cooked with chemicals under specific condition and temperature in the digesters for about four to five hours. During this process the raw material are changed into liquid cotton like dark brown material called pulp. The pulp is the basic material for the production of paper and board. The Paper & Board Mill work under the planning department. Marketing Department projects it prospective sales for the coming year. These projections are then sent to Planning Department which plans the production schedule for the Mill. In the Paper & Board Mill this whole year plan is broken into monthly plans. The Mill staff then, fined out financial needs and these needs are passed to the Finance Department. Following are three sections of Paper & Board Mill. 1. Pulp Section 2. Paper Section 3. Utilities Section

5.3.2 Pulp Section

The function of pulp section is to prepare Pulp from raw materials. The pulp section has four departments: a) Straw Preparation Department b) Cooking House c) Bleaching House. d) Beater House

5.3.2.1 Straw Preparation

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Wheat straw and cotton lintels are first cut and then cleaned to remove impurities. The material is fed to the digesters after a secondary cleaning of wheat straw.

5.3.2.2 Cooking House

Wheat straw and cotton lintels are mixed with chemicals and cooked in digesters (water & cooking liquor) under specific conditions of pressure and temperature. The mixture is fed to rotary digesters (Huge Tanks) and cooked. In this process the fibers get separated from the binding material. This process is known as Delignification. Straw and Kahi are either cooked together or in separate digesters.

5.3.2.3 Bleaching House

To achieve the desired whiteness and brightness the material is washed and screened and the uncooked fiber is separated in order to get refined Pulp. The bleaching process consists of the following steps: Hypo chloride is added to pulp Chloride is added to the pulp An alkali (Caustic Soda) is added to the pulp

5.3.2.4 Beater House

Beater house also known as stock preparation plant is the heart of paper making process. Here we impart the desired properties for paper and board by refining and blending different pulp and then mixing them with chemicals. Addition of imported wood pulp Addition of sizing agents All other additions regarding any other properties that we want in the paper.

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5.3.3 Paper Section

In the paper section, we deal with the paper machines used to make paper and board from the pulp produced by the pulp section. Paper & Board Mill has four machines: PM-1 PM-2 PM3 PM-4

5.3.3.1 PM-1
PM-1 is bought in 1966 from SANO IRON WORKS, JAPAN. It had a capacity of 50 tons per day. It was rebuilt in 1981 with GERMANTECHNOLOGY and its capacity increases to 70 tons per day. This is a multiple board making machine. It can make 2 to 3 ply board. Its width of paper sheet is 2.7 meters, and grammage range is140-490 grams. The types of paper board produced by PM-1: White Duplex Board Corrugating Medium Paper Craft Liner Board White Card Board Kraft Board Chip Board

5.3.3.2 PM-2
This machine was bought in 1984 BELL, Switzerland and has a capacity of 50 tons per day. Packages Limited modified it to increase its capacity to 75 tons per day in1992. It can only make up to two ply board. Its paper width is 1.83 meters, and grammage range is 70-240 grams. The types of paper and board produced: Off-set Printing Paper Wrapping Paper Craft Paper

31 Tetra Duplex Board Brown Craft Paper

5.3.3.3 PM-3
It is a MG YANKEE machine bought in 1966 from Switzerland. It was modified in 1982 for the manufacturing of tissue paper and again modified in 1988. Its production capacity is 12 tons per day. Now this machine can make only single ply. It normally manufactures: Glazed Paper Wrapper Paper Brown Draft Poster Paper

5.3.3.4 PM-4
It is the most new Paper machine, which the packages limited, has added in its line of paper machines. PM-4 was installed in 1992 by the technical staff of Packages Limited. It has the capacity to produce 15 tons of paper per day of paper per day. It is an imported ITALIAN machine for manufacturing the tissue paper. It has produced 16 grams tissue paper. The paper & board manufactured by paper machines are wound as big reels. The reels are then sending to Paper Store from where it is provided to the Packaging Division. There it is cut, printed and converted into packaging material used by various industries.

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6 RESEARCH, DEVELOPMENT & CONTROL DEPARTMENT

If the industry wants to grow not just survive, then it should take care of its Research and Development Department. World is changing day by day. Development in Packaging material is a continuous process. New materials, films, fibers, chemicals, adhesives and coating always are researched and developed. As Packages Limited wants to retain clients, stay out of court and improve profits, so it gives much consideration on quality of the product. To keep up with new demands, Packages Limited has a Research, Development and Control Department. This department works in close collaboration with Production and Marketing departments. This department has well equipped laboratories and pilot machines, which are used to test various chemical raw materials and machines. It enables Packages Limited to provide better quality and latest packaging to the consumer industry, enabling it to introduce new product lines an develop new materials. The Research, Development and Control Department have three major areas for its activities: Research Development Control

Packages Limited maintains the following landmarks with respect to her quality policy: Complies with the ISO 9001 standard 6th company in Pakistan to adopt the ISO series as its quality standard Maintains 57 Quality Improvement Teams in various departments to ensure continuous improvement focus in the organization Nurture Key performance indicators (KPI) concept: Each division in the company sets SMART (specific, measurable, achievable, recordable and time-based) targets for the annual improvement of its key process parameters, reviewed by the management every quarter Maintain a comprehensive set of engineering tools, rules, processes, training materials, guidelines, best practices and other supporting documents to make sure our products comply with every possible customer requirement.

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6.1 Research
This section is directly responsible to the Production Manager about his research. In Research, work is done with on the idea, experiment is divided into parts and on each part attention is focused and conclusions or suggestions are given. Packages Limited tries to get as many information and technology which is possible and beneficial to the organization. All such information is collected for research. Some time they receive reports of customers problems and complaints from Marketing Department and advice to them through the same channels.

6.2 Development
Development is a continuous process in any organization. A lot of development is the result of feasibility studies, study of new production methods and new products. Packages Limited has a Paper & Board Mill, so it uses largest number of chemicals. The Environment Protection Agency has some standards for reducing pollution. The R, D & Control Department developed new way of reducing pollution and always tries to meet EPA standards.

6.3 Control
Packages Limited R, D & Control Department divides term CONTROL into two areas: Quality Control Process Control

Quality is synonymous with Packages limited. Every package made by Packages Limited guarantees the use of quality materials and processing. This is all due to the strict quality Control Standards, observed at every stage of the production, from raw materials to dispatch Department. This department makes stringent requirements on quality control, which help in working consistently towards attaining better results for customers. To ensure constant quality and improvement this department managed by qualified scientists. Quality Control section has satellite laboratory in every department, which constantly monitor and report. There is on the spot checking and corrective treatment is given to the operators. If the percentage of defective material goes above the permissible limit, the supervisor and machine operator is given a signal to take corrective action. In Process Control, the process of production is carefully monitored. Samples from every

34 department, e.g. Pulp Section, Beater House etc. are taken to quality control department and tested for standard.

6.3.1 TO- DO List of Quality Control

Customer Satisfaction in Terms of Quality process inspection from raw materials to consumer Trainings for Management and Staff measure of dispersion, central tendency, standard deviations, defect matrix, bandwidths etc Quality Inspections Laboratories 6 labs, each at the end of each production cycle, certifies or declines the product clearance to market Supplies Quality Assurance verification of certificate of analysis by the supplier about particular order Quality Improvement Projects (QIPs) quality circles with members from QA, Inventory and Supply Chain Quality Conferences Kaizen Conference (Japanese: Continuous Improvement) monitory awards for quality work; Productivity Conference recognition for yearly performance

QA Lab at Paper and Board Mill Area

Gloss Test for Card Sheet

R, D & Control Department is divided into different sections for copying different types of problems. The sections are:

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6.3.2 Rubber Section

Rubber section is almost independent but has a link with R, D & Control Department. The main purpose of this section is to solve the problems of making special rubber parts. All rubber goods produced by the Rubber Section are used in different departments of the organization. Because of this section, company does not need a single thing of rubber to buy from the outward market. This department helps the Packaging Department, Corrugated Department, and Paper & Board Mill. About 70% of the material is used in the manufacture of the rubber. About 20% material is imported and the rest of the material is acquired from the local markets. Some important products of these departments are Gas Kits, Seals, Bushes, Rubber Rollers, Rings and etc.

6.3.3 Physical Paper & Polly Packing Section

R, D, & Control Department have a physical Laboratory where the physical characteristics of Paper & Board are tested. The standard of new material, pulp, paper and board are tested to find out if they are of required standard or not. This section is equipped with the most modern equipment and trained staff.

6.3.4 Pulp Section

This section is the biggest section of the R, D & Control department. This section checks the quality of pulp produced in the Pulp Section. It also sets the standard of pulp for specific quality of paper required. Pulp is the basic raw material for the production of Paper & Board. Near about 82% of the paper is manufactured by pulp. The rest of paper and board is manufactured through the use of non wood fibers. In this regard they use Kahi, Stew etc. Packages Limited always tries to maintain its consistent quality. So some important tests, which are performed by the Pulp Section, are: Density test Moisture test Tensile Index test Tear Index test Thickness test Burst Index test Stiffness test Picking Velocity test Wax Velocity test Internal Bond test Surface Roughness test Porosity test

Oil Absorption test

36 This section also conducts research for new raw materials and to improve the quality and composition of existing raw materials.

6.3.5 Chemical Section

Packages Limited has one Chemical section, most of the chemicals are used in the Paper and Board Division is produced in this section. These chemicals include Sodium Sulfate and many other. R, D & Control Department has a duly equipped chemical laboratory that conducts research on the chemical aspects of the packaging materials. One another important function of this department is to determine the percentage of these additives used in the finished products. Normally these chemicals are purchased from local market. Quality tests are carried out in the chemical laboratories. It also provides help to other Departments where Chemicals are used.

6.3.6 Development Section

The development section is engaged in the long term projects, follow ups and the design aspects of the production.

6.3.7 Microbiology Section

Main function of this section is to conduct research and development in the field of food packaging.

6.3.8 Library
The R, D & Control Department has a library also, where a number of books about Packaging Industry are available. The Library provides the best material for related fields and also some on other general topics. Staff of Packages Limited comes there and gets information which may sometimes help in decision making about the problems. The library also keeps the record of all the Research and Development activities for this department. In this section books & material are available on the following topics: Business Administration, Printing, Accounts, Water Treatment, Urdu, Islamic Literature, News Papers, Statistics, Management, Magazines, Economics, Mathematics, Chemistry, Mechanical, Engineering, Packaging and Pulp Industry etc.

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7 Management Information System

Management Information System (MIS) is also called Computer Section. Before setting up their own Computer System, Packages Limited hired computer services. But when work grew and requirements increased, Packages Limited has set up their own computer system. Now all the computer related work of all the departments is performed in this section. MIS Manager is the head of this department and he is answerable to the General Manager. Its responsibility is look after the data processing and making software for Packages Limited. There are two senior system analysts, nine data entry operators, four computer operators and one supervisor. System Department almost helps the whole organization because almost every department is to some extent computerized. The major job of this section is to assist the Accounting department and thats why it is situated adjacent to the Accounting department. At this time, Packages Limited uses the following systems efficiently: Accounting System Inventory Control System Human Resource Management System Production Incentive System Production Planning System Job Casting System

MIS Department works in collaboration with SYSTEMS LIMITED which maintains the all accounting data of Packages Limited. This job is done through parallel that is the programmers at Packages Limited can also use the facilities of SYSTEMS LIMITED simultaneously. The Computer Department of Packages Limited mostly develops programs in C language. This department has done a lot of programming for the organization. At this time all systems, which are use in the System Department, is developed by its own staff. Normally they do not take enough time to develop a new system. After developing the system they debugged and checked again in order to remove any problem if it exists in the real situation.

38 Earlier this section was using 8088 and 80286 computers but now they have become obsolete due to the rapid development in computer technology. Now they are using MULTI-USER DECSTATION 5000/125. Configuration of this system is given below: CONFIGURATION MODEL NO PM 339-JY DESCRIPTIONS DS 5000/125 SBM 16 MB ULT DECSTATION 5000 Model 125 16 Mb of 4m bit dram, 25 MHz CPU CPU FPU MIPS Clock Speed Cache Memory Memory Capacity R3000 R3010(Moths) 26.8 25 MHz 128KB 8-128 MB

Including Software licenses: ULTRIX, FNS,DECWINDOWS, DECENT COMPAQ MODEL C, MOUSE, UNIFY

250 PCs attached with net working

The cost of this system is US $ 46000 and additional cost of each terminal. Packages Limited at this time use ON-LINE SYSTEM. Packages also have 32 Personal Computers in different departments to fulfill the requirements. And almost each department has laser printer. The top management believes that this computer section has a great deal to expedite routine jobs at Packages Limited. Company is again updating their system department by purchasing the advance technology SAP under consideration to overcome the Y2K problem.

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8 Environmental Policy
Packages Limited through it decisions constantly tries to: Minimize its environmental impact, as is economically and practically possible Save raw materials including energy and water, avoid waste Ensure that all its present and future activities are conducted safely, without endangering the health of its employees, its customers and the public Develop plans and procedures and provide resources to successfully implement this policy and for dealing effectively with any emergency Provide environmental, health and safety training to all employees and other relevant persons to enable them to carry out their duties safely without causing harm to themselves, to other individuals and to environment Ensure that all its activities comply with national environmental, health and safety regulations This policy shall be reviewed as and when required for betterment of the same. Packages Limited has the capability of producing 100% recycled paper. Various grades of paper and board (shipping, cartons, newsprint, magazines, and imported waste paper) are collected and then shredded. This is fed to a huge mixer where a controlled percentage of virgin pulp and used paper are mixed together to produce material for recycled paper.

8.1 Recycling Paper

Packages have the capability of producing 100% recycled paper. Various grades of paper and board (shipping, cartons, newsprint, magazines, and imported waste paper) are collected and then shredded. This is fed to a huge mixer where a controlled percentage of virgin pulp and used paper are mixed together to produce material for recycled paper.

8.2 EFFLUENT AND WASTE MANAGEMENT

Discharged water from the paper and board mill goes to a septic tank where heavy, insoluble material settles down and is constantly scooped out. Specialized cleaning equipment removes

40 the residual sludge and suspended particles. The suspended solids are separated and treated on sludge de-watering equipment and thickened for disposal. The introduction of the new method of using wheat straw as a raw material was a bold step partly aimed at reducing the chemical load of the effluent. An even bolder step was taken with the import of Chemical Recovery Plant in 1997. Black liquor, which poses severe difficulties in the effluent treatment system in any pulp mill, is concentrated in this plant to 58% solids and then incinerated in a waste heat boiler, where organic impurities are destroyed and the steam generated is utilized for evaporating the incoming liquor. The ash, containing inorganic compounds, is dissolved in water to recover any available chemicals.

8.3 Water Management

This is a recent part of the green policy adopted by Packages. It includes reduction of the usage of water in all stages of its processes. Better water management has led to better utilization of water and other raw inputs. At 300 tons per ton of pulp produced, the quantity of water itself poses serious problems of extraction and disposal. To reduce it, a dissolved air flocculation system and special filters have been added to different streams of reusable water and wherever possible, fresh water in various processes has gradually been replaced with this water.

8.4 Independent Energy House

Packages Limited is self-sufficient in its power generation capabilities with an installed capacity of 26MW. A local boiler meets the company's steam demands.

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9 Results
Packages Limited has been improving by efforts streamlined through the committee of internal experts to look regularly into issues concerning production, quality, environment, health and safety. The committee is currently involved in the management of fresh water use, effluent management, and control on air emissions, energy conservation and maintenance of health and safety standards in the company. As a result of combined efforts, company has successfully reduced its quantity of water used, as well as its BOD and COD has been reduced significantly. Steam consumption and heat energy consumption in 2003 have both shown a reduction of over 16% each compared to 1999. The electricity use in the same period has gone down by an impressive 25%. These activities have acquired such importance for the company that out of US$ 100 million spent on new processes and technology in the last few years, 20% were spent on environmental issues alone. With similar pace of progress and improvement, Packages will be continue to be the market leader for coming times and a role model for other enterprises, both local and abroad.

FIGURE 4 TPM PILLERS AT PACKAGES LIMITED

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Appendix A

FIGURE 5 GUIDE MAP PACKAGES LIMITED