i 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
i
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 offer’s 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.
ii
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.
iii
TABLE OF CONTENTS SUMMARY .............................................................................................................................................................. I
ACKNOWLEDGEMENTS .......................................................................................................................................... II
TABLE OF CONTENTS ............................................................................................................................................. III
1 INTRODUCTION ............................................................................................................................................. 1
2 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
iv 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 MANAGEMENT INFORMATION SYSTEM ...................................................................................................... 37
8 ENVIRONMENTAL POLICY ............................................................................................................................ 39
8.1 Recycling Paper .......................................................................................................................................... 39
8.2 EFFLUENT AND WASTE MANAGEMENT ..................................................................................................... 39
8.3 Water Management ................................................................................................................................... 40
8.4 Independent Energy House ........................................................................................................................ 40
9 RESULTS ...................................................................................................................................................... 41
APPENDIX A ......................................................................................................................................................... 42
1
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
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.
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, world’s
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.
Smart Governance
Work Environment
Our People
Conservation
Customer Satisfaction
Ethical Behavior
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.
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)
Paper and Board
Consumer Products
Packaging
6
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 Weight (g/m2)
Test liner 125-220
Corrugated medium Paper/Fluting 120-170
Wrapping Paper 70-90
High gloss writing paper 58-68
Poster Paper 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 Weight (g/m2) Bleached Board 195 - 205 Duplex Board 150 - 450
Cardboard 160 - 250 Liquid Packaging Board 150 - 290
Poster Paper 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 pre-
press 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.
10
2.4 Organogram
Chairman
Project Director
BSPM
Executive
Board
General
Manager
Managing
Director
Advisor
Consumer
Product Manager
Deputy GM
CSD
Manager
Marketing
Manager
Manager Tissue
Production
HRD
Manager
IR Manager
QC Manager
Rubber Manager
BU Carton Flexible
Corruwall
Mill Manager
Group Brand
Manager
Stores &
Inventory
Manager
Sales & Product
Manager
Commercial
Manager
Finance
Manager
R&D
Manager
IP Manager I/C CPD
Production
ERP manager
Tech
Manager
Mech Power
Liaison &
Admin
Manager
Board of
Director
11
3 PAPER MAKING PROCESS
3.1 Raw Materials
TABLE 1 PROCESS RAW MATERIALS
Raw Material Explanation
Alum Assist in sizing the paper, making it somewhat water
resistant so that inks did not "run" or spread
uncontrollably.
Hard Wood
Bleached Hard Wood
0.05 inches (length) Hardwood fibers fill the sheet
better and therefore make a smoother paper that is
more opaque and better for printing.
Soft Wood
Unbleached wood
Bleached wood
0.13 inches (length) e.g. Pine and spruce which have
typically long fibers
Recycled
waste paper
Recycled material is collected and sorted and usually
mixed with virgin fibers in order to make new material
Straw
Bleached Straw
Wheat Straw
Straw is pulped to make paper
Pulps
Bleached hard wood pulp
Bleached straw pulp
Unbleached wood pulp
Mechanical pulp
Waste paper pulp
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.
Shredded tetra Shreds of board use in tetra packs
(BCTP)-Bleached Chemical Thermo-
mechanical Pulp
Pulp made using some hybrid processes
Kraft
Unbleached Kraft pulp olympic
Unbleached Kraft pulp simpson
tacama
The Kraft process describes a technology for the
conversion of wood into wood pulp consisting of
almost pure cellulose fibers.
12
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.
15
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.
16
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 year’s performance is reviewed.
The next year’s 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
18
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
22
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 paper’s 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 material’s 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, ROLAND AND
HIEDLBERG”. ROLAND machine is latest and print in five colors.
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.
25
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 customer’s
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.
26
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, it’s 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
29
5.3.2.1 Straw Preparation
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.
30
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.
32
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.
33
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:
35
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.
37
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 that’s 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 DESCRIPTIONS
PM 339-JY DS 5000/125 SBM 16 MB ULT
DECSTATION 5000 Model 125
16 Mb of 4m bit dram, 25 MHz CPU
CPU R3000
FPU R3010(Moths)
MIPS 26.8
Clock Speed 25 MHz
Cache Memory 128KB
Memory Capacity 8-128 MB
Including Software licenses:
ULTRIX, FNS,DECWINDOWS,
DECENT C, MOUSE, UNIFY
COMPAQ MODEL 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.
39
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.
41
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
42
Appendix A
FIGURE 5 GUIDE MAP PACKAGES LIMITED
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