Abstract:
Small and Medium Enterprises (SMEs) are considered to be the engine of an economy
as they contribute significantly in the country’s GDP and are a big source of employment
generation. Currently there are more than 5 million SMEs in Pakistan that contribute 40%
of the country’s GDP and 25% in overall exports. The focus of this business project also
revolves around one such SME called Pak Argo Packaging Ltd. (PAPL) that is based in
Phase IV, Hattar Industrial Estate, KPK, Pakistan.
PAPL is Pakistan’s pioneer and forefront company engaged in manufacturing of
agricultural textile products. It’s primary product Greenhouse Shade enjoys a 50% market
share and its production and related operations shall be the emphasis of this business
project.
A comprehensive operational analysis for this product was done for PAPL in which
process flow charts for production of Greenhouse shade were prepared, accurate
forecasting techniques were incorporated to predict month wise demand for 2023, plant’s
current production capacity was evaluated, raw material’s inventory management
progression was developed and the control limits, sigma level and the capability of the
production process was assessed.
The operational analysis concluded that PAPL’s current plant’s production capacity is
not sufficient to meet the forecasted demand of Y2023 and a shortfall of 72,155kgs would
be observed. An addition of a Raschel Knitting machine was proposed in which an investment of PKR 17.5M is required and the payback period for this investment would be
four years.
Increasing productivity for SMEs is extremely important and for that it is highly
recommended that an operational audit of their production operations is conducted
annually so that market demand is met every time.
