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pro 1 fatima
TERM PROJECT ON
AL-KARAM TANNERIES
Submitted By:
Mueez Najam Qureshi
Najeeha Humayun
Nimra Javed
Hisham Muzaffar Raja
Hamza Rizwan Khan
Fatimah Fasihah Khan

Instructor: Rizwan Ahmed
Course: Operation management
Section: D
Lahore School of Economics

EXECUTIVE SUMMARY
Al-Karam tanneries is a leading leather manufacturer in South East Asia. They are the sole exporter of leather to about 60% of the South Africa region and exports extensively to China as well. Currently they are one of the best leather manufacturers in Pakistan and are growing every year but they are facing multiple hurdles in the way. One of the major operational problems they face is the prevention of the formula from its workers and competitors, for which they have no proper set up. Another problem is the leather hide split, regarding which the firm is still indecisive as to whether they should sell it or produce further products from it. With thorough analysis, Al-Karam tanneries can set its production process in batch system with no contact of one batch with the other. Hence, no one would know the full formula and won’t be able to replicate it. Whereas the split should be sold in cash or should be outsourced for production because if produced within the facility it will bring cash flow problems and will affect the overall effectiveness of the firm because even with outsourcing they can earn a 20% profit.
Project Report

This project is concerned with the thorough analysis of Al- Karam tanneries. The objective of the project is to keenly observe the operations of the firm and then find out the problems they are currently facing and the discrepancies that are prevailing in the process or the operation as a whole. After identifying the problems or discrepancies, a viable and realistic solution shall be provided keeping in mind the operation management tools whilst letting them know the benefits of those solutions.
Al-Karam tanneries was established in 1985, as a private limited company.

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