Crescent Textile Mills Ltd.: Weaving Technology Decision

Crescent Textile Mills Ltd.: Weaving Technology Decision Overview: Mr Nasir Shafi, music director of Crescent Textile Mills (CTM), is contemplating on the determination of expanding his interweave capacity and whether to acquire either the air yard look or projectile loom. We have analysed this decision on the frugal aspects i.e. capital investment, payback period & waste etc as well as incorporating the business strategy of CTM. As the identify progresses, we build a case for the purchase of Air jet looms and its implications on our future. Capacity Expansion Decision: The first decision is whether to expand our capacity in weaving or not. this instant CTM is producing high quality yarn and for finishing and dyeing purposes, its buying its gray cloth from local weaving looms. The turn out is that the final product is of an deficient quality due to the inferior grey cloth. The poor finishing may also be attributed to the facts that the textile affect units argon operating mostly in the unorganised sector at small scale, without modern processing facilities. Thus, the overseas buyers prefer to buy yarn or grey fabrics from Pakistan.

The exports of Cotton cloth also show a heavy trend towards continuous growth and in Exhibit 2 of the case we can see that the value of cloth and readymade garments is more than twice the value of the cotton yarn. As there are not many large-scale weaving units, CTM should be suitable to get the pioneers advantage by using modern fowl less looms to setup its weaving plant. Mr Shafi will have break away control over the quality of his production if he produces everything in-house i.e. from rotate yarn to weaving cloth to finished good. Current Issues: In 1990, CTM had fifty second hand projectile looms and although they were in a good working condition but they needed a lot of maintenance which was very expensive. There was an expectation that the export market for cotton cloth will get best(p) and the Pakistani government was going to... If you want to get a full essay, order it on our website: Orderessay

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