REPORT ON

BUSINESS PROCESS REENGINEERING OF

AL-RAHIM TEXTILE INDUSTRIES

GROUP MEMBERS
YAHYA EJAZ
NOMAN
IMRAN
EHTASHAM

BUSINESS PROCESS REENGENEERING OF

AL-RAHIM TEXTILE INDUSTRIES
Contents
OVERVIEW OF THE TEXTILE INDUSTRY: ........................................................................................................ 4
INTRODUCTION OF AL-RAHIM TEXTILE INDUSTRIES .................................................................................... 5
DECLINING OF AL-RAHIM TEXTILE INDUSTRIES ............................................................................................ 6
RAISE IN EXPORT FINANCE SCHEME ............................................................................................................. 6
GAS CRISIS AND ELECTRICITY CRISIS ............................................................................................................. 6
SET BACK FOR AL-RAHIM TEXTILE DUE TO RAISE IN YARN PRICES ............................................................... 7
DRY CONDITIONS ON LAST FEW YEARS FOR AL-RAHIM TEXTILE .................................................................. 7
PROCESS BEFORE BUSINESS PROCESS REENGENEERING ............................................................................. 7

INTERNAL PROBLEMS ................................................................................................................................... 7

LACK OF RESEARCH & DEVELOPMENT (R&D):- ............................................................................................. 7
LACK OF MODERNIZE EQUIPMENT:- ............................................................................................................. 7
INCREASING COST OF PRODUCTION:- .......................................................................................................... 8
LACK OF NEW INVESTMENT:- ....................................................................................................................... 8
SUPPLY CHAIN MANAGEMENT: .................................................................................................................... 8
TECHNOLOGY INTERVENTIONS ..................................................................................................................... 8
HUMAN RESOURCES DEVELOPMENT ........................................................................................................... 8
EXTERNAL FACTORS HITTING INDUSTRY BADLY ........................................................................................... 9
ENERGY CRISIS: ............................................................................................................................................. 9
RAW MATERIAL PRICES:- .............................................................................................................................. 9
EFFECT OF INFLATION IN AL-RAHIM TEXTILE INDUSTRIES ........................................................................... 9
SOME OTHER ACTIVITIES BEFORE BUSINESS PROCESS REENGEENEERING .................................................. 9
SOME OTHER MAJOR PROBLEM BEFORE (B P R) .......................................................................................... 9
DO OR DIE FOR AL-RAHIM TEXTILE INDUSTRIES ......................................................................................... 10
AL-RAHIM TEXTILE INDUSTRIES COME UP WITH NEW ............................................................................... 10
STRATEGIES AND PLANNING:...................................................................................................................... 10
APPLICATION OF ERP SYSTEM..................................................................................................................... 10
FINANCIAL MANAGEMENT ......................................................................................................................... 11
SUPPLY CHAIN MANAGEMENT (SCM) ........................................................................................................ 11
PROJECT MANAGEMENT ............................................................................................................................ 11
HUMAN CAPITAL MANAGEMENT ............................................................................................................... 12
TEST THE SOFTWARE: ................................................................................................................................. 12
ORDER MANAGEMENT PROCESS AL-RAHIM TEXTILE INDUSTRIES............................................................. 12
Enter Order: ................................................................................................................................................ 12
Pick Release: ............................................................................................................................................... 12
Ship Confirm:............................................................................................................................................... 12
Auto Invoicing: ............................................................................................................................................ 12
Payment: ..................................................................................................................................................... 13
SOME OTHER Benefits OF ERP IN AL-RAHIM TEXTILE INDUSTRIES : .......................................................... 13
IMPLEMENTATION OF SOLAR SYSTEM ....................................................................................................... 13
CONCLUSION............................................................................................................................................... 13

OVERVIEW OF THE TEXTILE INDUSTRY:The textile area plays fundamental position in the admissions of Pakistan. In Asia, Pakistan is the
8thlargest exporter of textile material. The dedication of this industry to the total GDP is 8.5%. It offers
work to around 15 million people, 30% of the country work vitality of around 49million. The yearly
volume of total world material trade is us$18 trillion which is creating at 2.5 percent. Out of it, Pakistan's
engagement is almost around one percent. The progression of the Manufacturing Sector has been given
the hugest need resulting to Pakistan's building with critical weight on Agro-Based Industries. For
Pakistan which was one of the principle creators of cotton on the planet, the change of a Textile Industry
making full usage of its rich resources of cotton has been a need zone towards industrialization. At
present, there are 1,221 ginning units, 442 turning units, 124 incomprehensible turning units and 425
little units which make material things. The business contains broad scale formed part and a significantly
separated house/ little scale fragment. The distinctive parts that are a bit of the material worth chain
are: Spinning, most of the turning business lives up to expectations in a made manner with in-house
weaving, failing hard and finishing work places. Weaving encapsulates little and medium measured
substances. The taking care of portion, containing coloring, printing and finishing sub-divisions, simply a
bit of this territory is working in a created state, prepared to process sweeping sums while the straggling
leftovers of the units fill in as meager and medium measured units. The printing segment charges the
general changing industry imitated by material shading and fabric whitening. The bits of attire collecting
share make the most dumbfounding employment inside the material worth chain. In abundance of 75%
of the units contain minimal measured units. The knitwear business for the most part includes plants
functioning as composed units (sewing + processing+ making up work places). The clothing divisions
both woven and sews are basically clustering in Karachi Lahore and Faisalabad where sufficient ladies

work is open. Pakistan is the world's fourth greatest creator and third greatest buyer of cotton. The
Textile and Clothing Industry has been the standard driver of the economy all through the past 50 years
the extent that remote money pay and vocations creation. The Textile and Clothing Industry will
continue being a crucial engine for future improvement of the economy; there is no choice industry or
organization division that can potentially benefit the economy with outside coin wage and new
occupation creation, especially if joint effort is made among different sub ranges and attempts are made
to powerfully create the Readymade Clothing Sector. Pakistan's Textile Industry had showed its quality
in overall business in the midst of the latest four decades. It has exhibited its quality even in post
amount time by supporting its position and additionally, showing improvement in the midst of 2005 to
2007, however declined to $11.1 billion in 2008 in view of budgetary and monetary crisis universally.
The item of clothing Sector & specially the Knit Garment division need exceptional gather in future
methodology

INTRODUCTION OF AL-RAHIM TEXTILE INDUSTRIES:Al rahim textile industry establish in 1991, Al-Rahim Textile Industries is the principle name in home
materials in the area. Under its general picture called 'Lintaz', Al-Rahim Textile Industries has been
babying the needs of both and adjacent customers through era of premium gage greige fabric. Around
the start, Lintaz of Al-Rahim Textiles focused on serving the area market, however in 2008 Lintaz
appeared to be, all in all, to be an overall saw brand of home materials as its business portfolio was
deliberately extended to enjoy the widespread market in sign of 'Finished Terry Products'. Al-Rahim
Textile Industries, in the midst of the same period, also place manufacturing assets at Nooriabad (close
Hyderabad city). As per our era restrict, our yearly turnover of terry towels is 11,000 tons, while yearly
turnover of fabric happens to be 84,500,000 meters (30,000,000 in-house office and 54,500,000 meter
from the business weavers).
Top managerial staff of Al-Rahim Textile Industries is incorporated visionary operators like Mr. Abdul
Rahim Saya, Mr. Faisal Rahim Saya, and Mr. Shezad Rahim Saya. Working with a fantasy to stay
incomparable in the domain of home materials in regards to sensible quality improvement and business
change, Al-Rahim Textile Industries places stock in reliably making world-class quality things to our
regarded customers and corporate clients scattered all over all through the world.
Al-Rahim Textile Industries gives top need to Health, Safety & Social manageability and our sentiments
and practices are complied with the Policies & Regulations of our clients. Our mechanical office
structures are genuinely fabricated and secure. We organize irregular fire drills and the powers'
wellbeing & security issues are sufficiently tended to. We have programs for reusing our abuses (limit
water & hot air) and we are setting up an Effluent Treatment Plant (ETP) to re-cycle more than 80% of
waste water from our time
Al-Rahim Textile Industries has certified backings for its things and business areas and is sporadically
assessed by generally seen affirmation bodies including Oeko Tex 100 , BSCI, C-TPAT, Sedex.

Al-Rahim Textile Industries has its own particular choice toward oneself vitality period remembering the
final objective to guarantee predictable power supply as requirements be minimizing loss of creation.
The exceptional locale of Nooriabad Industrial Area is unaffected by gas needs which obliges us a
commanding edge over conflict.
Al-Rahim Textile Industries is one of the best plane terry weaving, yarn shaded & jacquard towel obliges
in Pakistan. With a yearly most extreme of 40 Million pounds of completed terry towels, we depend on
upon most recent improvement to guarantee quality and on-time transport. With free power time and
insignificant deficiencies in gas supply, Al-Rahim recognizes full limit use as it is not affected by City
turmoil and strikes and aggravations. Because of vertical joining, all approaches are under one
association.
Al-Rahim has brief access to best cotton becoming extents of Pakistan giving a focused expense
advantage which is then coupled by relentless tries towards improving advantage in social affair to
lower cost, other than the economies of scale- all included and allowed to our clients by framework for
commanding assessing. The vertical coordination not just obliges us mind blowing control on all steps of
creation, yet most major, it helps towards sufficiency and lower expenses of period which we present to
our client.
Al-Rahim Textiles has exceptional imaginative work (R&D) twisted which amazingly keeps up our clients
in making five star things. We make irregular structure gage and case sheets which is kept up by fast
looking at. Al-Rahim Textile Industries make reliable amazing quality Home Textile things with the
backing of most recent European Plant & Equipment. Stringent procedure controls and inline quality is
stayed mindful of an adaptable, traditionally masterminded examination office to help our get-together
methodology at every one stage.

DECLINING OF AL-RAHIM TEXTILE INDUSTRIES:RAISE IN EXPORT FINANCE SCHEME:The Al-Rahim Textile Industries confronted a decreasing in its change by virtue of convincing vitality
emergencies particularly, respect included entire textile industry in a terrible position of 100 reason
point increment in EFS rate from 8.5% to 9.5%, other than a move in centrality requests. And not only
that there were so many problems which are detailed below

GAS CRISIS AND ELECTRICITY CRISIS:The lower openness of force was electricity a key obligation for the quality included material section. As
showed by State Bank's quarterly report, shockingly, in view of round commitment adjacent refineries
couldn't give obliged Furnace Oil add up to power time associations

SET BACK FOR AL-RAHIM TEXTILE DUE TO RAISE IN YARN PRICES:The cotton expenses increment from 2000 to 6600 every 40 kg because of the confirmation of yarn, the
yarn section will entire to 614 million kg .As a deferred outcome of high confirmations, adjacent supply
has moreover been short the surge of the same has however been negative for the worth included
division that buys neighborhood yarn so finally after some time government impose the duty so this
problem get come to control a bit.

DRY CONDITIONS ON LAST FEW YEARS FOR AL-RAHIM TEXTILE:Al-Rahim Textile Industries is experiencing one of the hardest periods in decades. The general
subsidence which has hit the general material badly is by all record not by any methods the main
foundation for concern. True blue inward issues also affected Al-Rahim material industry amazingly. The
high cost of creation happening as intended in light of a moment move in the centrality costs has been
the key driver of affectability at the business. Disintegrating of Pakistani rupee amidst a year earlier has
essentially raised the expense of transported in inputs. Additionally, more over inflation and power
sector emergencies have influenced this company allots.

PROCESS BEFORE BUSINESS PROCESS REENGENEERING

AT AL-RAHIM TEXTILE INDUSTRIES :INTERNAL PROBLEMS:LACK OF RESEARCH & DEVELOPMENT (R&D):The absence of research and development (R&D) in the Al-Rahim Textile Industries brought them to
produce normal quality of products in comparison to rest of textile industry and this resulting so much
loss to the company because they are unable to produce order at right time with good quality and
meeting with the tough competitive condition among other textile companies

LACK OF MODERNIZE EQUIPMENT:Al-Rahim Textile Industries has old machineries and hardware with the exception of few significant types
of equipment. The powerlessness to opportune modernizes the supplies and hardware has prompted
the decay request to the organization intensity. Because of out of date innovation the expense of
products is higher in the organization as compare with different organizations

INCREASING COST OF PRODUCTION:The production of Al-Rahim Textile Industries climbs because of numerous reasons like expanding
interest rate, inflation & diminishing result of Pakistani rupee. The expanding these rates brought on
risk in opening new assembling units & additionally builds the generation expense of existing units. The
estimation of Pakistani rupee is continuous diminishing which expanded the expense of transported in
crude material. The evacuation of appropriation & execution of new charges from government
additionally expand the expense of generation. The moment increment in expense of power additionally
created an increment underway. The most importantly reason expanded the expense of creation of AlRahim Textile which makes issue to contend its opponent rivals.

LACK OF NEW INVESTMENT:The venture volume is not palatable in the Al-Rahim Textile Industries as contrasted with the potential
accessible. Al-Rahim Textile Industries is confronting issue of Low profit because of its old material
hardware. To conquer this issue and to remain in rivalry, Al-Rahim Textile Industries was obliging high
speculations.

SUPPLY CHAIN MANAGEMENT:One of the main problems was the worst performance of Al-Rahim Textile Industries it is mostly like all
work done in the absence of well-organized supply chain supervision and centralized structure. lots of
financial and political factors involved in the facility of the exporters to meet up their promise timely
and that is resulting the failure and worst result to the company more over all the drama going on there
the management teams are getting passed the sample of their beloved very hardly process go through
from the merit bases. That causing so much pain to the company but somehow company cannot do
anything because so much powerful hand were involved in it

TECHNOLOGY INTERVENTIONS:company representative knew the condition of their companies and well know that if they dont work
on the latest modern technology so they can come in the deep troubles so finally they start thinking on
that and try to produce the good at better quality and price.

HUMAN RESOURCES DEVELOPMENT:The human resources department was not working well they are just concern about their self interest
and was hiring their own blood relationship group and on another hand One of the major problem of
training which company is not showing interest due to lack of profits .but after the interest of the
company representative call the human recourses department and gave them strong instruction to train
their employees for the betterment of the company. They were also need to hire the professional staff
that can bring some new ideas to run company well. But these were the basic problem which company
was trying solved

EXTERNAL FACTORS HITTING INDUSTRY BADLY

ENERGY CRISIS:As a result of burden shedding the Al-Rahim Textile Industries creation limit of different requests has
been diminished. The delegates Al-Rahim Textile Industries affiliations displayed their genuine concerns
on the tremendous misfortunes being caused because of power & gas. As indicated by the
administration burden shedding was most serious issue in method for accomplishment to the
organization.

RAW MATERIAL PRICES:Costs of cotton & other crude material utilized in Al-Rahim Textile Industries were fluctuating quickly in
Pakistan. The fast increment in the value crude material influences the expense of creation gravely.
Because of expansion in the expense of generation the interest rate & home too diminished which bring
about terms of downsizing to the organization bringing about unemployment so the skilled workers
dont need to work in this organization some time recently

EFFECT OF INFLATION IN AL-RAHIM TEXTILE INDUSTRIES:Rise in inflation of country and also increase the price of raw material causes the increase in the cost of
production of textile good which compel company for downsizing and downsizing results the burden of
currents employees so they cannot maintain their attention on their specialties that is getting disturbed
in whole management chain of the company.

SOME OTHER ACTIVITIES BEFORE BUSINESS PROCESS REENGEENEERING

These are some other major worst activities which company used to follow

Received order form customer.

Send email to warehouse for pickup and dispatch of ordered inventory.

Deliver order to customers premises along with invoice.

After reconciliation customer made payment.

SOME OTHER MAJOR PROBLEM BEFORE (B P R) :

No specific software for business processes and managing operations

Timely unavailability of Information when required

Lack of coordination among departments

Account receivables take longer time to collect

Inefficient Sales and customers experiencing

Inefficient Orders fulfillment Process and take longer time than expected

DO OR DIE FOR AL-RAHIM TEXTILE INDUSTRIES:According to ABDUR RAHMAN (manager of textile industry) while the worst time of textile industry
around 800 material industrial facilities got shutdown in Punjab due to the bad management and poor
policies and remaining part done by the power and gas and because of that around 500,000 laborers lost
their employments. In order to save their company they had to take bold and major step and get the
professional treatment to company and due to this they got saved.

AL-RAHIM TEXTILE INDUSTRIES COME UP WITH NEW

STRATEGIES AND PLANNING:
APPLICATION OF ERP SYSTEM:ERP Software in AL-RAHIM TEXTILE INDUSTRIES plays a magical part for the organization. ERP is not only
useful for the textile business additionally such a great amount of helpful for Construction,
Manufacturing, Steel and so on this product has incorporated together to the center of whole work
structure of the venture so as to streamline the whole work structure. Al-Rahim Textile Industries
broken into diverse courses of action that must be synchronized successfully to attain the basic
objective of the venture.
This company almost changed over all process after implementing the ERP process and finally got away
from the manual process which cause them so many losses and cause of so much mistakes and make
them harder to control the management activities

The ERP system handles whole burden of managing processes very efficiently. It decreases
process time cycle

It very efficiently coordinates with supply chain management.

It manages the data with great comfort by generating a single, consolidated origin

On time and perfect business data. ERP does away with the covering of activities and thus saves
time and money by

Standardizing and tuning all the vital processes. It provides brilliant control over job based
accounting and costing linked stuffs.

Therefore exercises good regulator over project costs and budgets. This software provides
continuous flow of information and this allows each and every Person to get easy access to the
information and this increases the efficiency of the entire labor force of the institution.

ERP delivers total clearness to the Top administration so that they can get upper view of Eye assessment
of all the activities of the organization. This removes the chances of human errors. And above all it
exercises complete control over all the business.

FINANCIAL MANAGEMENT:Due to implementing the ERP software financial management has got so much easy for the company
and maintaining the general Ledger, and now they know the exact figure of their account receivable and
how much they have to pay to their creditor, the exact amount which they have in their banks and cash
on hands the times of billing also be guided with the help of ERP system.

SUPPLY CHAIN MANAGEMENT (SCM) :ERP Has Given The Great Impact On The Inventory Management Now They Know The Exact Figures Of
The Inventory Management And Cause Of That It Help Them Not To Have The Excess Inventory And
They Know The Figures Which Guiding Them About The Figures And Calculation Regarding The Sale
Order Processing Unit And Not Only That Purchase Order Automatically Generates As The Inventory
Goes Down And All Calculation With The Help Of ERP System Done Automatically.

PROJECT MANAGEMENT:Provides managers sufficient control and prominence all over the task process cycle, includes planning,
budgeting, forecasting costs and revenues, handling problems and modification and tracking project
position and presentation.

Task management and activity management

Time and expense tracking

Customer billing

Job costing

HUMAN CAPITAL MANAGEMENT:Manages and mechanizes the activities that are used around management, workers and inside a
business.

Benefit administration management

Human resource (HR) management

Payroll management

Time and labor management

TEST THE SOFTWARE:Before executing it is significant to test the system by trial or test. Do the test with each key division so
that any uncertainties can be cleared there and then itself. Make sure that correct people are put to test
viz. IT division employees should be present and also those workers who will make use of the system
should be accessible and on the test sources they accomplished.

ORDER MANAGEMENT PROCESS AL-RAHIM TEXTILE INDUSTRIES

a. ENTER ORDER
In this part of order management process we entered order into the system which automatically book
inventory from warehouse.

b. PICK RELEASE
Send notification through system to pick ordered inventory from location. Picker moved to the location
along with hand held device and punch picked order into the system.

c. SHIP CONFIRM
As picker punch inventory through his hand held device inventory dispatch notification sent to the
customer that order has been dispatched.

d. AUTO INVOICING
System automatically generates and send invoice to customer.

e. PAYMENT
Receive payment from customer and system reconciles it with dispatched inventory and order closed.

SOME OTHER Benefits OF ERP IN AL-RAHIM TEXTILE INDUSTRIES:

Reduced Inventory cost and out of stock

Improved Customer Service

Reduced delays in order processing

Improved Direct Labor Productivity

Reduced Traffic Cost

Reduced human resource waste

Reduced Overtime

Having accountability throughout the organization

Improved managing quality

Reduced discrepancy with invoice reconciliation

IMPLEMENTATION OF SOLAR SYSTEM:Due to the shortage of electricity they had install the generator to come over the on this problem but
according the ABDUR RAHMAN who is manger of that company this is costing them so high now they
are going for the solar energy that would help t reduce the cost and provided them full electricity as per
company want for the testing process this company have already shifted their some of the machine in to
that and till now its going successful for them and according to him his whole company will be shifted to
the solar plant in coming short period of time.

CONCLUSION:This company was having the worst performance and they company representative knew that they have
to make some radical changes if they want to save their company and they have taken some medicine in
the favor of the company and taken Big and major step to change the overall process and for that they
had to face so much resistance from the labor union but they have totally decided for the radical
movement and made the downsizing whose who were against the changing process and also kicked
whose warned those employees who were not performing up to the satisfaction level only that they
come up with the new strategy in terms of implementing the ERP system and due to away from the
shortage of electricity they have bought the generator that fulfill the requirement of the shortage of
electricity but now recently they have realized that generators are costing them so much so cause of

that they are now moving for the solar system. This company was full of problem but due to the
business process engineering (BPR) they have saved this company and now this company is enjoying the
healthy profits