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A Summer Internship report On The work flow and its analysis in the garment manufacturing industry Venue : Pearl Global Limited (A Unit of House of Pearl Fashions Limited) Submitted by: Ashish Ranjan MBA (M&E) 2008-10 46,Institutional Area ,Sector 32,Gurgaon 122001, [email protected],www.psbg.in 1

Business of This Company[1]

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In the partial fulfillment of my MBA(M&E) in Pearl School of business,I did my summer Internship in House of pearl Fashions Ltd.The focus area was operations. I did an analysis of Garment Manufacturing of Export Oriented unit.

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Page 1: Business of This Company[1]

A Summer Internship report

On

The work flow and its analysis in the garment manufacturing industry

Venue: Pearl Global Limited (A Unit of House of

Pearl Fashions Limited)

Submitted by: Ashish Ranjan

MBA (M&E)

2008-10

46,Institutional Area ,Sector 32,Gurgaon

122001, [email protected],www.psbg.in

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Table of Contents

1. Acknowledgement…………………………………………………………..2

2. Executive Summary…………………………….……...……………………3

3. Introduction…………………………………….…………………………….4

4. Business Of The Company….………………….…………..

……………….4

5. Brief History…………………………………….……………………………5

6. Major Events…………………………………….……………………………6

7. Business Model………………………………………………………………7

8. Pearl Global Limited………………………………… ….………………..10

9. Business Divisions………………………………………………………….10

10. Manufacturing Subsidiary…………………………………… ..

……… .11

11. Merchandizing &

Sampling…………………………………………….…13

12. Costing………………………………………………………… ..

……… …15

13. Sourcing & Storing

Process………………………………………….…….18

14. Production………………………………………………………………

….20

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15. Documentation………………………………………………………

………27

16. Quality

Control…………………………………………………………...…27

17. Conclusion…………………………………………………………….

….….30

18. Bibliography………………………………………………………….

……...31

19. Annexures……………………………………………………………....

......I----

Acknowledgement

My Sincere thanks goes to esteemed organization in the export House

Business, Pearl Global Ltd. (A unit of House of Pearl Fashions Ltd.)

Gurgaon, India for providing me an opportunity to learn and apply

some experiences.

Firstly I thank to Mr. Shelly Cherian, HR head of House of Pearl

Fashions Ltd. who helped me while approaching the operations’

sections, divisions and department heads .In this way my work became

comparatively easier because of my introduction with some employees

of the company who were unknown to me.

I am extremely thankful to Mr. Rajan Khanna, head of the team in

Merchandising department & handling the buyers Like Old Navy (brand

of GAP), Esprit, Kohl’s etc. who provided me an opportunity to work

together and learn the process of business and Business Model of the

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company. I am also thankful to Mr. Roshan Bhatia and Mr. Jitender

Rawat, who guided me through the way of practicality of business in

Merchandising and Sampling Department.

I also want to express my gratitude towards Mr. Gulshan Ahuja, GM of

the department of Production, who allowed me to do my work along

with their employees.

I also want to thank all sectional heads, supervisors and even the

employees who shared with me their unending knowledge and

support.

Last bust not the least, I am thankful to all those who knowingly and

unknowingly who helped me in data collection and gave me their

unconditional support for this study, their positive attitude towards me

and willingness to provide me the inputs.

Ashish

Executive Summary

This Summer Internship is an integral part of the programme MBA

(M&E). Students are evaluated on the basis of presentations of their

projects after they come back from eight weeks of internship.

The Objective of the internship:

To get properly involved in the daily activities areas of business

discipline assigned and expected to inquire, examine and

evaluate many more things than just carrying out their daily

chores.

To gain an understanding of the business model of the company

and understand the industry characteristics by applying the

techniques taught in the class, exposed to the reality of the

business activity.

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I tried to fulfill these objectives during my internship period. I got

involved in the manufacturing department of Pearl Global Ltd, Unit

446, Udyog Vihar, Phase 5, Gurgaon, 122005.

During the internship, I fully involved myself into the Store for learning

and observing the inventory holding and order placing, quality

checking of fabric, accessories supplied. During these processes, I also

looked at the factors associated with it and their impact on the

business. I saw the feasibility of minimizing the negative impacts.

Then, after gaining enough knowledge of the above, I moved forward

to see the operations in Production department. During the study, I

came across several factors affecting the production and various

reasons behind it as bias. I tried to learn the methods to avoid them

and turn them into positive assets. The people over there looked at me

curiously and were happy to give me the insights and technicality of

manufacturing (pattern setting, cutting, stitching, measurement,

methods, etc.)

Finally, I involved myself into Merchandising Department, where I

came to know the order receiving and turning it into the process of

production after getting approval through the process of sampling. I

also learnt there the business models, and its functions.

Introduction

Global Apparel Sector

The apparel manufacturing industry has, on a global scale, shifted its

base several times over the last 50 years and has been concentrated

in those countries which offer the most competitive labor costs.

Beginning in the 1950s, the manufacture of apparel began shifting

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away from the western countries to eastern countries with lower labor

costs, such as Korea and Taiwan. In the 1980s and 1990s; production

began to shift to other countries in South-East Asia. In 2000, India

exported 9.6 million apparels to US and was the 4th largest exporters in

this sector with regular positive growth rate. India was the third largest

supplier to the EU, accounting for a share of 9.2 % out of 17% of the

EU textile imports , which came from Asia. The American Textile

Manufacturing Institute estimates that more than US $ 50 billion in

customer orders will be outsourced to lower-cost countries.

From India, during 2006-07, textiles and clothing exports were at US$

18.73 billion, with a growth of about 7% over the previous year, and

contributed about 15% of country’s total exports earnings in 2006-07.

In the current financial year, the growth of textiles and clothing exports

has been slower due to recession which is being attributed by the

Textiles & Clothing industry mainly to the appreciation of the rupee.

India apparel’s export target is US $ 55 billion by 2012.

The retailers or the brand sellers look for manufacturing in monetary

terms which turns the craze and passion of consumers. In developed

countries people tend to spend more on wearing and want to remain

updated with the fashion trends. The retailers try to grab the

opportunity and want to earn the maximum of profit. This can be easily

achieved with outsourcing of garment designing, manufacturing to

Asian pacific countries. This system has grown and enlarged in such a

way that it has lead to grooming of number of export houses in India,

Bangladesh, China and Hong Kong to catch and fulfill the expectation

of the buyers with the quality prices and on time delivery even to the

buyers’ countries and their ware houses. This Business has larger pie

of profit if it is able to save the margin through the procurement of

required basic materials through the suppliers (squeezing the

suppliers’ side). Designing with quality, fabrics, dying, require a huge

no. of workforce. Other factors are Good logistics, very good contact

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and contract with a numerous suppliers, the infrastructure, working

condition, approved machines and technology, following the labor

laws. Even under the very high pressure, they commit by the date of

shipment and that too, not compromising on the quality, at the same

time, avoiding fluctuation in daily production.

Business of the company

Their aim is to grab the opportunity in the apparel export sector, being quality supplier and entrepreneurial organization.

Brief History

This organization was incorporated as a private limited company under

the name of Mina Estates on July 5,1987under the companies act 1956.

The name of company subsequently changed to House of Pearl

Fashions Ltd. under special resolution.

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In its early time, the company conducted business as a separate group

of companies. The domestic operations have been carried out by Pearl

Global, a listed company in India. Now HoPFL owns a 62.8% equity

market interest in this company. To integrate the international

operations with domestic operations, this company started

restructuring its businesses and completed in a phased manner. On

March 28, 2006, HoPFL incorporated its wholly owned subsidiary in

Mauritius, in Multinational textiles, with 100% equity interest in global

textiles group, and 85% equity interest in Norwest Industries (HK), a

Hong Kong Company on March 31, 2006. Global textiles group owns

Depa US, Poeticagem Company and PT Norwest .Company has

principal operating companies in the US , the UK, and Indonesia

respectively. On March 28, 2006, HoPFL also acquired 99.9%and 98%,

respectively of Nor Pearl and Norp Knit, Companies incorporated in

Bangladesh.

Major events:

Date Events

1987 Pearl Global Stared operations1994 Pearl Global Lists at BSE,NSE, DSE and ASE

1998Establishment of international presence with incorporation of Norwest industries in Hong Kong.

2002 PT Norwest, Indonesia stared production.

2004 Setting up of sourcing office in China

2005The company acquired import and distribution office in the US and the UK and also consolidated overseas entities

2005 Setting up of sourcing office in Bangladesh

2005 Nor Pearland Norp Knit, Subsidiaries in Banglad3eshcommenced

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operations

2006Reorganization of group companies and consolidation of operations under House of Pearl Fashions Ltd

2006 HoP ,new subsidiary incorporated in US

This company was started as an entrepreneurial venture by Mr.

Deepak Seth in the year of 1987 named as Mina estates. After two

years of working, it turned into Pearl Global Ltd. by the order of

law in 1989.

The Main objectives of the company as contained in operations in its

memorandum of associations are:

To carry the businesses of manufacturers, fabricators, importers’

and exporters’ wholesale and retailers of and in men’s women’s

and children clothing and wearing. Apparel of every kind, nature

and description including shirts, bush-shirts, pajamas suits,

vests, under wears, suits foundations garments for ladies,

dresses, brasseries, maternity belts, knee caps, coats, panties,

nighties and so on.

To carry on the business of manufacturers and

importers ,exporters, wholesale, retail dealers and in hosiery

goods of every kind nature and description for men women and

children including vest, underwear, socks, stockings, sweaters,

laces and so on and of all anything which is used in hosiery

goods.

To carry on the businesses manufacturers, traders, dealers, and

exporters, of all kinds of fibers and yarn made or otherwise,

textiles and textiles materials natural or otherwise.

To carry on the business of preparing spinning, doubling,

weaving, combing, sourcing sizing, mixing, twisting, bleaching,

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coloring, knitting, dying, printing, and finishing whatever textiles

substances or any substitute for any of them.

Business Model

The Business model which describes the method of “in positioning

the value chain, customer selection, products, practicing of

doing business” is described below :

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Figure 1

Design and development

Design innovation in order to respond to current consumer preferences

and anticipate future fashion trends. Design teams are supported by

sophisticated computerized design systems.

Marketing, distribution and branding

Marketing involves managing relationships with existing customers and

meeting the needs of new customers. Marketing and distribution

offices located in the U.S., the U.K. and Hong Kong oversee Marketing

and merchandizing teams are present in Canada, Europe, Hong Kong,

the U.K. and the U.S. These offices interact face-to-face with customers

and play a critical showcasing designs and products.

The samples are modified based on the customers’ specific design and

cost requirements. Marketing team then sends the details of the

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selected samples and other customer requirements to in-house

manufacturing facilities located in India, , and Bangladesh Subsidiaries

or the third-party sourcing office provided the lowest feasible cost

estimate can manufacture products in an efficient and timely manner.

The finished products are delivered to the customer’s designated

agent on an FOB basis or to their warehouse in the US, Europe or any

importers for delivery to the customer on an LDP basis.

Manufacturing

In-house manufacturing

The manufacturing facilities receive orders directly through customers

and marketing offices. In either situation, after receiving the

production order, a production plan is adopted to coordinate the

manufacturing process and to ensure adherence the delivery

schedules. Orders used to placed for raw material requirements, which

comprise of finished fabric .The unit perform a range of processes on

garments using specialized equipment like, cutting, embroidery

printing stitching thread cutting, ironing, steam pressing, collar

pressing, accessories attachment and folding prior to packaging and

delivery to customers.

Logistics and warehousing

The company has a belief that they are one of a few apparel

companies which can offer goods to customers on LDP terms. Their

distribution companies are fully supported by logistics and

warehousing facilities in the U.S. and the U.K. This enables them to

service customers in the vicinity of their operations. These warehouses

have processing facilities and distribution infrastructure, including:

Logistics and transportation;

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Garment processing and ironing;

Quality control;

Reverse logistics; and

Shipping and forwarding.

Pearl Global Ltd (Manufacturing Subsidiary)

Pearl global was incorporated as Pearl Agencies Private limited on

October 23, 1979 under the laws of India, with effect from July 1, 1991.

The company became a deemed public company under the

Companies Act and the word Private was deleted. The company was

changed to Pearl Global Limited on September 2, 1993. The

Company is principally engaged in the manufacturing of ready made

garments. On October 6, 2006 it merged or amalgamated with two

more companies i.e., Pearl Styles limited (“Pearl Styles”) and City

Estates Private limited (“CEPL”).

Share holding Pattern

Pearl Global shares are listed at NSE, the BSE, the ASE and the

Shareholding pattern

Name of Shareholder

Percentage (%)

Mr. Deepak Seth 5.9

Mrs. Payal Seth 3.5

Mr. PallakSeth 0.2

Mr. Pulkit Seth 0.3Deepak Seth& Sons(HUF) 1.7

The company now employs 6,735 employees in India.

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The company maintains a very good relationship with employees and it hasn’t faced any kind of strikes or lockouts or other significant labor disputes.

Business Divisions

The House of Pearl Fashions Ltd has several subsidiaries in India and

abroad. This company has divided its manufacturing divisions in North

India and south India

Total Manufacturing Subsidiaries

India

Pearl Global Ltd., North India

Pearl Global Ltd., South India

Bangladesh

Norp Knit Industries Ltd

Nor-Pearl Knitwear Ltd

Indonesia

PT Norwest Industries Ltd.

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Manufacturing Subsidiary

Pearl Global Ltd., North India

Pearl Global limited is among the pioneers of ready to wear apparel

manufacturing industry in India. This Company has six fully integrated

manufacturing plants in Gurgaon, capable of producing value added

garments in woven & knitted fabrics.

The total factory area in North India covers more than 310,000 sq ft of

space and provides an efficient and spacious layout. The installed

capacity on a single shift basis stands at 10 Million pieces per Annum.

The factory is placed with the best garment manufacturing & finishing

equipment:-

Automatic Brother & Juki sewing machines for Woven & Pegasus

for Knits

Laundry with ability to deliver great washes & treatments

Value addition through fully computerized embroidery machines

of Barudan & Tajima

Integrated systems with EDI facility to provide online access to

some of its key customers

These units specialize in casual wear dresses, ladies blouses in both

woven & knits.

The company is serving the complex needs of some of the best

retailers of the world. To name a few, The Gap Inc., JC Penney, Kohl’s,

Next, H&M, & Esprit.

These units are fully compliant to local laws pertaining to health, safety

and labor regulations. These are approved by some of the top retailers.

These units employ more than 6000 thousand of workforce.

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The unit in I which got an opportunity to work and look for

practical experience by using the theoretical concepts and

learning, was 446, Udyog Vihar, Phase -5 Gurgaon, to

operations of garment manufacturing.

Detail relating to manufacturing facility is as follows:

Location

Space Used

No. of Machines

Capacity in Million Pieces/year

Capacity Utilization annually (%)

Gurgaon

310,000 2,644 6 95.4

The summary of the work flow of garment manufacturing company is discussed below:

1. Merchandising & Sampling

1. A. Communication with the buyer: The representatives of the retailers or buyers sit in the buying houses

to convey the requirements and needs depending on the wearing style,

exact measurement of the fittings of body shapes of the consumers.

Retailers sometimes even give the designs, pattern fabrics and

accessories and also the measurement styles.

1. B. Identifying their need and choices: A special NPD department (New Product Development Dept.) is there where designers sit and design for the apparels on the computers and then they get it printed. With the help of pattern Master (pattern setting and cutting of several pieces of fabrics), they get the complete apparel. After several rounds, keeping in mind the expectation and preferences of the customers, it is approved by the buying houses

1. C. Sampling based on the buyer’s preferences and preferred measurements

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1. D. Approval of sample by buyer taking in account the fabric colors, accessories, embroideries and sourcing cost.

1. E. Getting order.

1. F. Making pattern of the approved sample for final production

Developing & Maintaining Purchase order [merchandiser’s] file* GSS (Garment Specifications Sheet).

The GSS which is the guide line, developed

The merchants have two works side by side which they have to do at

the same time and these are mentioned below:

The First one is developing the garments

1) Proto Sample: Looking at the pictures and developing a garment

for having a real look of its design, color fabrics with the

measurements based on the buyers approved dummies.

2) Pilot Comment: It is the comment which is given regarding its

measurements and quality on threads, elastics, accessories etc.

3) Rough body to make as per pilot comment

4) FA-1(First fit sample)-3 Pcs (If there is any comment in the first fit

then proceed for 2nd fit too.)

5) PP Sample’s-Buyers-3 Pcs

6) Sale’s man Samples (SMS)

7) Grading for all size sets it maybe from XXS-XXL

8) Sealer Sample’s- 3 Pcs which would be used as sample throughout

the production

These stages may vary from buyers to buyers like in case of Old Navy

(A GAP Inc brand), KHOL’s , S.Oliver etc.

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At that time I was involved in style No. 694040 (GAP), a garment for

toddler, which is made in a simpler way and it is mentioned below:

1. Proto sample

2. Pilot sample (some corrections in trims and ruffles)

3. Size Sets (16-18, 18-24, 2T, 4T)

4. TOP (Top of the Production)

Some times they seal the TOP or size sets as Sealer Samples.

These are the works which are done or they make it done by

merchants through Cutting master CAD(Computer Added Design)

system , cloth cutters, sampling tailors, pressmen etc

The second one the most important task

It is done parallel and the task is sourcing of materials on/in time with

quality, costing, least expenditure in manufacturing. Merchandisers

prepare a cost sheet with both party approvals which is reasonably

good and they are left up with reasonable value.

Costing

The method of Costing is done depending on the addition of number

and types of accessories, the art work, the cost of fabric procured,

washing done, use of threads, width of fabric etc.

During the summer internship, I was involved in the development of

the cost sheet for GAP garment Style No.694040, which was as follows:

Fabric Width Consumpti Total Rate Financi Total Cost/

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Description

of fabric

available on

consumption

al Factors

Fabric Price (Rs.)

Pcs (Rs.)

Cotton 40% Solid

dyed bright white 54"

0.46 per yard

5,027.34 yards

73.00 per Yard 0.00

366,995.82 33.58

Cotton 40% Solid

dyed regular white 50"

0.38 per yard

4,153.02 yards

55.00 per Yard 0.00

228,416.10 20.9

595,411.92 54.48

Here even the extra as wastage 5% is calculated.

Description of manufacturing costsCost/Pcs (Rs.)

Basic ConsumptionContribution per machine INR 1,197.06 74.816

Accessories cost 18.323other accessories cost 7.25Fabric Yarn Cost 54.48Shipment Commission 2.50% 3.971TOTAL 158.84

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ITEM DESCRIPTION COST PER PIECES

Accessories Description INR Cost/Pcs

Wastage (%)

INR Cost/Pcs

THREAD 6.00000 5.00 6.300MAIN Label 0.650 5.00 0.682care label 0.550 5.00 0.578other label 0.550 5.00 0.578

Elastic 2.50 5.00 2.625

Hanger 2.000 5.00 2.100Price Ticket 5.00 5.00 5.250

0.200 5.00 0.2100015.69800

Other Description INR Cost/Pcs

Wastage (%)

INR Cost/Pcs

Kaj Buttoning 0Beading 0StunckingTesting charges 2.00000 2.00000Any other ChargesAnother job workwashing 5.00000 5.00000 5.25000EmbroideryTOTAL 7.25

COSTING

COST SHEET

Fabric consumption in yards* No of Total Pieces =Total consumption in yards.Now, Total Consumption of fabric *Rate per yards =Total Fabric Price

Now, Total Fabric Price/No of total Pieces = Cost per Pieces

This is the basic charge of garment with the fabric cost included only. Here the cost of machine or expenses on machines and labor cost etc are no way considered.

So Again Adding to the

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1. Basic Consumption 2. UP Charges3. Accessories Cost4. Other Accessories cost 5. Agent Commission @2.50%TOTAL EXPENSES = ----- 6. FOB/CNF @ 44.00 INR the price comes into INR and gets converted into US $.

This is the expected that after adding a suitable margin to the cost which is incurred by the company and on which company can manufacture the garment pieces is conveyed to the Buyer. Now it depends on the buyers whether to consider or negotiate such cost for the manufacturing to this export house or look for another appropriate option. In this case buyer’s power is high based on the Porter’s model.In this way the total cost per pieces on which buyer agreed is Rs. 158.84 and as forward contract buyers do. They did with the conversion of rupees in US $ @ 44.00. So, the cost of that apparel becomes US $ 3.61. These cost sheets are also approved by the buyers for negotiations of marginal price for maintaining a suitable Selling Price of the Company through higher authority.

Two checks in the GSS are done which are given below:

FPT (Fabric Packet Test) is done by the Buyer’s approved

Laboratory to test the Temperature bearing ability of fabric,

detection of type and composition, colors etc.

GPT (Garment Packet Test) is done to check that after how

much stretching; the cloth gets torn, pressing heat, type of

detergent, chemicals etc.

The First sheets in the GSS include the POQ (Purchasing order

Quantity) and the details which are to be followed during the entire

production and even during the quality inspection before shipments.

The details in enclosure contains measurements sheet to follow the

measurement features after finishing, by looking at pictures of samples

for Cutting Details of manufacturing and putting the lots into stitching

department, Date of shipment, Mode and Quantity of shipment,

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Packing Details, Remarks( if any). These are the works on which

merchandisers need to spent more time and effort.

A Trim Card is maintained to guide the Department of Quality

Control. This Trim card shows all the materials which are being used

while production of garments like fabric swatch, threads, embroidery

design made on ruffle, elastics, wash care label, main label, price tags

etc.

Along with that, different type of samples with the approval of garment

and marked with tags are sent to production. These samples are

differentiated with color codes and these color codes are developed

and stored as counter pieces which are mentioned below:

No. SAMPLE COLOR

1. Counter White

2. Fit Green

3. Fast Track Fit & PP Bright Pink

4. PP Red

5. TOP White

6. Ad Blue

2. Sourcing and storing processes (Inventory Holding)

2. A. Getting requisition for sourcing the fabric and accessories

2. B. Communication with suppliers for getting the best quality at

competitive prices and placing the order.

2. C. Follow up for timely delivery of goods

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2. D. Receiving and unloading the fabric and accessories

2. E. Quality check of material

2. F. Dying and printing

Introduction of the style for which I worked while production the

picture of that

style was Style No. 659971 and that is mentioned below:

The Style No. was SH 659971C1-124B. The Buyer was The GAP Inc. and the Date of Delivery was 5th of June 2009. The shipments were to US & Canada in Six Various Sizes from XS, S, M, L, XL, and XLL. The colors for pieces were Black, Knit and Secret Plum. The same apparel with some variation was also supposed to be sent to Japan. The POQ Details for those countries in different sizes were as below:

PO NO

Delivery Date

Color XS S M L XL XXL

Total

GO2GV 5-Jun

Secret Plum 618

1454 1928

1555 991 454 7000

True Black Knit 530

1246 1652

1333 850 389 6000

1148270

0 3580288

8184

1 8431300

0

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For Canada

PO NODelivery Date Color XS S M L XL XXL Total

GO41Q-5A 5-Jun

Secret Plum 10 25 34

29 20 9 127

True Black Knit 9 21 28

24 16 8 106

19 46 6253 36 17 233

3. Production

3. A. Layering and cutting of the fabric:

The cutting personnel get fabric from stores as per the requirements;

to cut in a simple way .these cutting used to be done in layers with

maximum efficiency. This efficiency is achieved through the CAD

plotter. These fabrics are cut into layers. The layers are made with the

larger pieces first. The technique used is as the finishing the larger (XL

etc.) piece from longer fabrics and smaller pieces from less lengthy

fabric. During internship I saw the cutting method which has been

developed is as below:

The Fabric which are sent to cut and its recordings were as below:

PO No. Style

Pcs.+5% extra

Avg. Fabric required in Meter.

Wastage

Total Fabric in Meter.

GO41Q-5A 659971 13650 1.6 3%22495.

2

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The manufacturing has a flexibility to send the 5% Pieces extra/less

which would be paid.

Here fabric 3 % extra considered for elimination of any cutting caused

problem.

Size setsXS S M L

1 121 621 773 314 No of pieces

2 55 220 55 put to cut

3 121 566 553 259 left with

4 109 327 83 83 put to cut

5 12 239 470 176 left with6 _ 40 160 40 put to cut7 _ 199 310 136 left with8 _ 97 _ _9 _ 102 _ _

10 _ 102 63 63 put to cut

11 _ 0 247 73

left with these left with easily cut into less longer fabric after some tome

3. B. Setting the pattern &Cutting

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These layered pieces are cut into by electronic machine following the

pattern as given by the CAD Plotter on paper. Here CAD Designers plot

the pattern on the paper in such a way that that no wastages of fabrics

Pieces are put so close that efficiency of fabrics tend to have

increased.

Figure 2

3. C. Making bundles of different pieces

3. D. Numbering of all layers of each bundle

Gunman put the stickers on each pieces with their identification label

as well as count and make a series in ascending order.

4. Stitching

4. A .i. Assembly line stitching:

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Figure 3

Figure 4

Division of labor is done to make tailors expert in particular operations

and make their work simpler to increase their efficiency in work.

Through the assembly line the input output involvement of machines,

time spent and hourly outputs were calculated by the SAM (Standard

Assembly Method) designed by Industry engineering like during my

internship with the style No.659971.Working with 38 machines in 23.31

minutes a full piece would be ready. In the company, workers were put

on the sewing machines and they repeat the work as: addition of collar

to yoke, sleeve opening to sleeve, interlocking of front and back

bottom hem etc. During the work Production Manager looks for his

production as how much is matching with the planned and expected

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target with quality. Looking at the trend that a gap between in actual

and expected production the team (Production Manager, Industry

engineers, supervisors, record keeper) sit and analyze the cause the

most of their findings are:

Less motivation towards work,

Unskilled workers,

Not satisfied with the wages given if one is talented.

So they try to put the work on contract basis or outsource with the

contractor. The contractor pays them on the stitching of pieces .the

workers/tailors get their wages as much efficient they are.

When the very first lot of cut pieces go to the tailors take time to set

their hand by repeted business. A very new garment even when put as

input to the assembly line it took 4-5 days for approved finished piece

by quality checker. In this way the company suffers on operating

expenses. The actual recording during my internship tell that by the

end of 6th day the out put were only 40%. .I got time to spend during

the entire production of Style No 659971 on an average calculation the

production target achieved by only 70 %.

The analysis of contract based stitching:

The positive point of it that after calculation of Takt time by the

method of

The buyer required 10000in 144 hours Time

=

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144 Hours10000 Units

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To match up the date of delivery one garment was needed to stitched

in around 1 minute of joint working. Means, on an average one worker

have to work 0.86minutes on each numbered piece to meet the date of

shipment and save the expenses by preventing the mode of shipment

(Air).

Looking at the gap, manager outsourced the work but it also did not

able to fulfill the expectations.

The main causes were there as: putting at random the employees who

even don’t want to work with that system.

So much variation in skilled and unskilled workers and sitting up and

setting in the lines randomly as skilled one is sitting further &

unskilled one is sitting backward on which has the responsibility to

send the piece and make him (next) employed .

Glutton of earning more money lead to more rejections& Alters in this

way the rework increases.

The Benefits

It cuts a large range of mid level men who used to pressure for their

output. Employees are self motivated to do the work even when to

work with alters or rejected pieces.

The contractor pays the workers based on his costing on no of

operations in the garment. As the manufacturing cost of garment is 40

Rs and operations are 20 then on an average one worker would get 2

Rs. But some operations are large and some are small so they are paid

on time consumption basis during each operation.

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144*60 Minutes10000 Units

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The challenge is that to maintain the balance between workers,

fluctuation in supply, relationship with contractor, assuring and

reassuring the quality with inspection team.

The relative study of the time consumption of stitching through the

assembly line method and through full piece stitching method

S NTime taken in seconds

1. 602. 153. 594. 595. 636. 1037. 1708. 759. 3510. 9011. 5012. 4813. 8515. 9816. 3217. 12018. 18019. 5720. 54Sum 1453 seconds

24.216 minutes

In this way in 24 minutes a full piece is supposed to be ready. These

are time recorded by stop watch and each time period was recorded in

a common on running way method not disturbing and unknowingly to

them. The piece stitching time was for each individual separately.

4. B.ii. Full piece stitching

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By daily observation it is recorded that by working on an average of

10 hours tailors are used to prepare two pieces.

4. C. Measurement checking of stitched garment

The quality check people have been allocated the task to check the

measurements during or after stitching such that it is matched with the

measurements sheet given.

4. D. Alteration if any required

4. E. Fixing of kaj-button and any other accessories as per need with the help of machines:The kaj button attachments are done by the workers and are paid on

the no of pieces attached. For Garment 659971, 10 Buttons were

there and workers get paid 14 paisa for each button attachment.

5. Finishing

5. A. Cutting of extra threads

5. B. Washing

This is the smoothest operation among all. The only thing which is to

be taken care of as not to compromise with the time fixed for washing

of garments. Otherwise garment would compromise with quality and

got more rejections and rewash would be there.

For Style 659971 First washing with NID Soap Solution 5 gm per pieces

and time estimated was 15 minutes .Then after extracting the forth 8

gm of Silicon wash was for softening the garments.

This method didn’t carry with the secret plum colored garments and

started fading then; Optifix EC liquid was used as 3.5 gm per pieces.

5. C. Ironing

5. D. Initial quality checking quality stitching

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5. E. Finishing

5. F. Spotting: if any as side effect of various earlier operations

5. G. Mending

5. H. Alteration of sequins/ embroidery or any other

accessories

5. I. Final checking (Metal Detection: needle ,etc.)

5. J. Ironing:

With the steam press the measurements short were easily mended

5. Packaging and dispatch of goods

5. A. Folding:

The buyer shows the details as how and where to fold

5. B. Putting packing accessories like clips tags etc.

5. C. Putting folded garment into polythene

5. D. Making blister pack of packed garments

5. E. Putting blister packs into boxes

5. F. Stripping of boxes

5. G. Weighing of boxes

5. H. Handing over to the shipper

Documentation

Documentation is a crucial part of this whole process. Files need to

maintain during the whole process and need to be updated at every

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stage. Every detail regarding the design, style of the garment, quality

standard accessories used remain there in written and approved by the

buyer. Also the buyer needs to be communicated about the work

progress at every level. The ERP system maintains record through the

computers. It helps in accessing at any time to authorized persons in

positioning of manufacturing process. It also alerts if any defect which

occurs through all the networked computers to person responsible for

their jobs. Putting the orders through mail and marking Carbon copy to

all other who need to know about the works.

Quality Control

The quality control department needs to be involved at every level of

the work. The quality standard received from the buyer need to be

communicated to the people associated with the production. Then the

quality controllers need to inspect the garment at every level for

insuring that the given standards are being implemented properly. In

case of any problem they require to do the troubleshooting. Here the

Separate department of Quality Inspection lies which prevents the

rapidity and manufacturing without quality.

The process of manufacturing goes down to meet the date of

shipment. The time span the company gets within from the date of

operation to the date of shipment have some time for safety purposes

to avoid any uncalled situation or problems e.g. the lack of inventory in

the store, color variation started during wash in certain lot of fabric,

Bunk of contract based employees, another Styles or shipments

pressure etc. These are the problems not for themselves but they

affect on another work or the further styles to pace up the process .The

company has a very much of responsibility to maintaining the

responsibility for maintaining the credibility of buyers.

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The tendency to keep the word and pace by pressure from the bosses

or the heads makes a need of self respect to under workers. It affects

from both side i.e. even from the process of production to keep the

date of shipment and ready to serve with quality and to prove in front

of quality insurers from buyers’ representative. The extra pressure

crush the smooth work and inspection team get the chance to put the

question mark. If during the process the quality checkers within the

company have the power to prevent the rapidity then rework, question

mark, extra operating expenses of rebinding and effect on another

work would not be there.

Such thing happened with during my style No. 659971 the shipment

was for Japan and buyers became very much active especially in this

case because those Japanese are and supposed to be the no 1 in

Quality area. And just before the shipment they started inspection the

packaged pieces. They found the problems and variation from samples

in some pieces and got opportunity to say that shipment was

‘pathetic’. The problems were: misplacement of buttons, wrong

ironing, extra threads, and misplacement of gathering in garments.

The solution towards, is from workers’ side: they need to be trained for

particularity expertise in their area, to identify the separation which led

to change even with the same style but due to shipment is for another

country so the buttoning and no of buttons, their price labels would be

different .These are the basic lessons which workers need to be learnt.

Maintaining the speed from the starting work to last step would help

the company.

Conclusion

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This garment manufacturing and outsourcing business has very huge

opportunities to exchange. This Company and stakeholders are

working with their heart and soul to follow the demand, and have a

bigger share in detailed shipment with quantity and quality. Here as

much as much company is committed to catch up the fashion trend,

consumer behavior and cater to needs and ready to serve with

suggestions, this organization can survive in the export business,

especially for garments even in downturn situation.

Another factor is recognized by me during my internship is prefer the

business on Free on Board (FOB) because company has less

responsibility. They can get separation after putting up to their

representatives’ warehouse. Here by ready to serve with Logistics

system through (LDP) can help to exchange their potential in term of

relationship. The key strength here should be efficient and effective

supply chain & transport system. The laws and duties, inspectional

systems government policies of landing up with goods in different

countries in which the shipments are play a major factor.

The pressure of following the tight schedule for garments taking care

of seasons and weather need requires a lot of inner strength in terms

of operational efficiency. This is the industry in which Human

Resources are needed more. To train and retain them with satisfaction

will increase the efficiency and output. It is found by me in very short

span of industrial training, that shipment went smoothly with less

rejections and complaints as it was earlier. If rework is there then

workers get bored and more alters arises.

The scheduled supply from suppliers of raw materials as good

inventory holding in the stock will more smooth the manufacturing.

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Bibliography

www.houseofpearl.com

http://www.expresstextile.com

http://texmin.nic.in

http://www.textileinfo.com

The managers worked as mentors: Mr.Gulshan Ahuja, Mr. Chanchal

Sharma, Mr. Neeraj Aggrawal, Mr. Rajan Khanna, Mr.Roshan Bhatia,

and Mr. Jitender Rawat.

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