CHAPTER 1 INTRODUCTION Garment is one of the many labour‐intensive sectors that provide a gateway for developing countries to the global market. It offers important opportunities to countries to start industrializing their economies and in course of time diversify away from commodity dependence. Forty years ago, the industrialized countries dominated global exports in this area. Today, developing countries produce half of the world‟s textile exports. Moreover, the economic performance of the apparel and textiles industry in developing countries has large impacts on employment opportunities, especially for women. Though Ready-made garment (RMG) industry caters to one of the basic needs of human beings, it came into existence as an industry,( i.e. the manufacture of garments using industrial methods of production) only at the turn of the 20th century with the introduction of sewing machine on a commercial scale. In India too, though it is considered an offshoot of our textile industry which dates back to about the middle of the nineteenth century, and though of all the manufacturing activities in the economy it calls for ordinary technical skills and low capital investment, there was no garment industry worth the name till about the dawn of Independence (1947). A widely accepted definition of Garment Industry is contained in the International Standard Industrial Classification of all economic activities adopted by the United Nations including the ILO and followed by the Government of India. It indicates that „those establishments which do not make fabrics or knitted fabrics but only cut and make garments out of them, could be covered under the garment industry‟.
CHAPTER II INDUSTRY PROFILE: Textiles and clothing will always be essential goods for human beings. Spinning and weaving were the main activities that drove the Industrial Revolution in the 18th century. Since then the textile industry has been a leading industry in the initial phase of industrialization in many countries in different periods of time in the world. The Textile Sector in India ranks next to Agriculture. Textile is one of India‟s oldest industries and has a formidable presence in the national economy in as much as it contributes to about 14 per cent of manufacturing value-addition, s for around one-third of our gross export earnings and provides gainful employment to millions of people. The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it s for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture. Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. Most of sampled industries are manufacturing and exporting garments in the ranges of 50000 to 80000 pieces per month. Seven tenth of the sampled industries are making an annual turnover of rupees 7 crores to 9 crores. Majority of the workers are in the adult age group of 28 to 37 years. It has a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing, it is a major contribution to the country's economy. 2.1 MAJOR PLAYERS: The major players in Cotton Industry are WELSPUN INDIA LTD: Welspun India Ltd is the flagship company of Welspun group with an enterprise value of US$ 3 billion.WIL is ISO 9001:2000, 14001 and SA 800 certified company.WIL is a composite textile mill producing cotton yarn, terry towels and rugs for international markets. Welspun India Ltd is one of the largest home textiles producers in Asian and amongst the top 4 producers of terry towels in the world.
WIL is located at village Morai in Valsad district, Gujarat state. WIL annual turnover for the year 2009-2010 was Rs.681.881 crores. They have presence over 50 countries, over 24000 employees and 100000+ shareholders. Welspun is one of India‟s fastest growing conglomerates.
VARDHMAN GROUP: Vardhman group was established in 1965 and is a leading textile conglomerate in India having a turnover of $700 million. They have over 24 manufacturing facilities in five states across India; the group business portfolio includes Yarn, Greige and processed fabric, sewing thread, acrylic fibre and alloy steel. Vardhman group manufacturing facilities include over 800000 spindles, 65 tons per day yarn and fibre dyeing, 900 shuttleless looms, 90mn meters per annum processed fabric, 33 tons per day sewing thread, 18000 metric tons per annum acrylic fibre and 100000 tons per annum special and alloy steel.
ALOK INDUSTRIES LTD: Alok Industries Ltd is an Indian based textile manufacturing company and was established in 1986. Alok industries is a private textile manufacturing company and has manufacturing bases spread over 6 locations in Navi Mumbai in Vapi and Silvassa situated in Maharashtra. Its business domain involves weaving, knitting, processing, home textiles and readymade garments and its diversified manufacturer of world class home textiles, apparel fabrics garments and polyester yarns. Its buyers include manufacturers, exporters, importers, retailers and branded apparels manufacturers of the world. Further it operates its embroidery business through its sister concern, Grabal Alok Implex Ltd. Today Alok Industries is one of the largest private exporters of textile in India. Its business operations are spread across all the continents. Moreover, the manufacturing lab has been certified for ISO 9001:2000 quality standards. Alok Industries became public limited company in 1993 and their shares are listed in Bombay Stock Exchange and National Stock exchange. They have posted a net turnover of US$ 13 billion for the FY 2011 as compared to US$ 208 million turnover in 2004.
RAYMOND LTD Raymond was incorporated in the year 1925 and has 60% of the market share in worsted suiting in India. The company has a diverse product range of nearly 20000 design and colors of suiting fabric. They export their products to over 55 countries including USA, Canada, Europe, Japan and the Middle East. The company has ed a turnover of US$ 636.7 million for the FY 2011 as compared to US$ 364 million turnover in 2006. Their suitings are available in India in over 400 towns through 3000 retailers as well as over 500 exclusive retail shops. Raymond is among the largest integrated manufacturers of worsted fabrics in the world. Raymond Ltd owns some of the most highly respected apparels brand portfolio like Raymond, Manzoni, Park Avenue, ColorPlus, Parx, Zapp, Notting Hill and GAS. Raymond manufactures and markets even surgical gloves. The Raymond group also has an expansive retail presence.
BOMBAY DYEING: Bombay dyeing is one of the leading companies in textile business. In fact, India has made a position in the world textile sector holding the hands of Bombay dyeing. The textile products of the company are exported to different nations all across the world like United States, European Union countries, Australia and New Zealand. Bombay Dyeing by using advanced technology has brought about a change in the textile business. The entire production is divided into two broad streams Weaving and Spinning and Winding. The production level on a daily basis is over 300000 meters of fabric. Bombay dyeing at present is the largest exporter of sophisticated made up items and also of products made of cotton. Bombay Dyeing has created sizable market in the production of wide range of fabrics and ready-mades. This includes both formal and casual wear. The readymade collection of the Bombay dyeing is been changing its production pattern with the evolving fashion trends. The consumer section of Bombay Dyeing comprise of bed linen, towels, furnishings, suitings and shirtings fabrics and cotton and polyster blended dress sarees.
2.2 MARKET SIZE: The Indian textiles industry, currently estimated at around US $108 billion, is expected to reach US $ 141 billion by 2021. The industry is the second largest employer after agriculture, providing direct employment to over 45 million and 60 million people indirectly. The Indian Textile Industry contributes approximately 5% to GDP, and 14% to overall Index of Industrial Production (IIP). The Indian textile industry has the potential to grow five-fold over the next ten years to touch US$ 500billion mark on the back of growing demand for polyester fabric. The US$ 500 billion market figure consists of domestic sales of US$ 315 billion and exports of US$ 185 billion. The current industry size comprises domestic market of US$ 68 billion and exports of US$ 40 billion. Apparel exports from India have ed a growth of 17.6% in the period April - September 2014 over the same period in the previous financial year.
2.3GOVERNMENT POLICIES AND REGULATIONS: The national textiles policy was formulated keeping in mind the following objectives:
Development of the textile sector in india in order to nurture and maintain its position in the global arena as the leading manufacturer and exporter of clothing.
Maintenance of a leading position in the domestic market by doing away with import penetration.
Injecting competitive spirit by the liberalization of stringent controls.
Encouraging foreign direct investment as well as research and development in this sector.
Stressing on the diversification of production and its up gradation taking into consideration the environmental concerns.
2.4 RECENT TRENDS AND CHALLENGES FOR THE INDUSTRY:
In spite of immense factors fuelling the growth of the Indian textile industry, there are certain challenges faced by the country in of scarcity of trained manpower, escalating energy costs, high transportation costs, obsolete labor laws, low level of technology, and lack of economies of scale.
FUTURE PROSPECTS The Indian textiles industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand. The industry is expected to reach US$ 220 billion by 2020.
With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with several international players like Marks & Spencer, Guess and Next having entered the Indian market. The organised apparel segment is expected to grow at a compound annual growth rate (CAGR) of more than 13 per cent over a 10-year period GROWTH DRIVERS Rising per capita income, favourable demographics and a shift in preference for branded products is expected to boost demand Favourable trade policies and superior quality will drive textile exports Increase in domestic demand is set to boost cloth production Pointed and favourable policies instituted by the government will give the industry a fillip. With consumerism and disposable income on the rise, the retail sector has experienced rapid growth in the past decade, with many global players entering the Indian market The centers of excellence focused on testing and evaluation as well as resource centres and training facilities have been set up As per the plan for 2012-17, the Integrated Skill Development Scheme aims to train over 2,675,000 people up to 2017, covering all sub-sectors of the textile sector – textiles and apparel, handicrafts, handlooms, jute and sericulture Changing lifestyles and increasing demand for quality products are set to fuel the need for apparel
CHAPTER III COMPANY PROFILE LESHARK GLOBAL LLP is a 20year old manufacturer and exporter of readymade garments. Its manufacturing and finishing plants are spread over well layout and well equipped factories spread over 2, 00,000 sq.ft in south India. The owners belong to a family that has been the clothing industry for the last 40 crore. Both leshark (India) and hyknit industries operate tly in manufacturing and marketing both the companies us well know for customer queries , product development and best price for quality etc… both companies are good recognized export houses and it in the shot of most dynamic company has ISO 9002 recognition and okio 100 standard certification. The company is in process of being certified for SA 8000 and wrap (worldwide responsible apparel production) international standards. The company has totally 2000+ employees.
3.1 HISTORY: Leshark global llp established in a year 1987 with single unit which is located in chinnakarai,Tirupur. They begin with leshark exports pvt ltd later they changed to leshark global llp. The company got proper rights for to change as LESHARK GLOBAL LLP. LLP means limited liability partnership. The headquarters located in Mumbai and branch unit are located in tirupur. In tirupur, the company has 3 units. One is located in chinnakarai and two more units located in segampalayam,tirupur.
3.2FOUNDERS: The founder is kiran shaw and managing director is arun shaw.
3.2.1Vision : The vision of the company is
To become india‟s leading sustainable textile company by producing quality products and observing highest social, economic and environmental standards.
The company aim is to deliver the highest quality products and prompt services to our customers.
their objective is to provide good value through a competitive atmosphere of defined systems and processes.
3.2.2 Mission:
The company mission is consist of dedicated team work at all levels,
Giving priority to environmental protection,
Giving importance to sustainability in every action,
Concern for welfare of the work force,
Conformity with all local and national regulations,
Consistency in maintenance of highest quality standards,
Transparency and reliability in all interactions,
Punctuality and trust worthiness in all commitments will be the key to the realization of this mission.
3.3 PRODUCTS AND SERVICES: Their products are Casual wear sportswear track suits paints tros jeans t-shirt
skirt 3.4 FINANCIAL PERFORMANCE: Leshark global llp is presently doing well and the financial parameters are improving fast from the down trends inflicted by the successive hurdles. Company maintains impeccable records with the financial institutions, banks and other trade lenders.
3.5 CHALLENGES FOR THE COMPANY: Centralized Server: Since all the units are interconnected with one server and all the information is communicated through this server. Therefore anyone can access any of the details which may be confidential. If any error occurs or virus enters into the server it affects the total networking and may get crashed. All the information recorded in the server will get deleted. Although it is cost effective, easily accessible and manageable, it‟s the single point of failure that can bring an entire company down in the event of a server crash. Also when more s are added to the system, the load to the system increases and it decreases the performance of the overall system. And moreover Leshark globall llp Ltd is the head office for financial transactions of all the units and
the tasks to be completed will be pending without the information which to be
send by other units. There is only one server connected system for each department and hence all the staffs could not access the server at the same time. Data Storage: All the data regarding the inventories, purchases, sales, bills, receipts and financial transactions are recorded in Microsoft Excel. This requires a huge storage space for all the files to be stored. In case of new entries made the formula given for the existing data should be copied. If any information is needed, the data should be searched in huge files. Competitors: Since Coimbatore is famous for cotton mills, there are more competitors in this field. Though Leshark globall llp Ltd has five units of cotton mills and also well established the existing players in the market are also well established and also highly competitive.
ORGANISATIONAL CHART:
MANAGING DIRECTOR
GENERAL MANAGER
FINANCE MANAGER
ANT
PRODUCTION MANAGER
SUPERVISOR
WORKERS
QUALITY MANAGER
QUALITY CONTROLLER
PURCHASE AND STORE MANAGER
SUPERVISOR
ACCESSORIES ASSITANT
CHAPTER IV OVERVIEW OF FUNCTIONS 4.1 MARKETING (MERCHANDISING) Merchandiser [Marketing]: Garments merchandising means the work to buy raw material and accessories to produce garments (Merchandise) against a particular work order of garment and have to export these under the same work order within time schedule, maintaining required quality level of buyer. The Merchandising is the important activities, term and section of a garment that is not possible to run and deliver successfully. The term “merchandising” is well known to the persons specially involved in garments trade. The term merchandising has been derived from the term merchandise. Merchandise means good that are bought & sold. Merchandising is a business on marketing activities responsible for ensuring a products description both quality and quantity. Merchandising means total responsibility of a Merchandiser. A man who collects order from customer sourcing raw materials production on time with quality and maintains lead time. Garments merchandising means buying raw materials & accessories, producing garments, maintaining required quality level and exporting the garments within scheduled time. The marketing department has overall responsibility for contributing company‟s growth and profitability. Marketing department is the group or team of merchandiser‟s and their assistants. This marketing team plans and manages campaigns to grow in the business. 4.1.1 ROLES AND RESPONSIBILITIES: The main role of a garments merchandiser is to collect garments export order (export L/C), produce the garments, export the garments and earn profit, to perform those functions successfully needs lot of knowledge, experience & tremendous effort for a merchandiser. The term merchandising related with trade, Trade means buying & selling, The person who is involved with trade, he/she is a merchandiser. Merchandisers must have some essential knowledge and skill about the buying house accessories. Merchandisers should have to know about the buying house accessories like fabrics and yarn, types of fabric, quality of the fabrics, size of the yarn, dying method fabrics, finishing and also known about some accessories which essential for production such as sewing threads, zippers, plastic accessories, interlining, elastic, woven label etc. This is significant for merchandiser since they want to make deal with the buyer merchandiser can inquire buyer that what type of buying house accessories they want to apply
manufacture of the product. When the buyer provides their opinion the merchandiser can easily identify what they want, because bad quality accessories or wrong accessories used can cause the merchandiser to be rejected returned by the buyer. So the merchandiser must be careful about the buying house accessories. A merchandiser has to know the total accessories of the production of a product and the estimate cost of that garments product. Negotiation with the buyers: The most critical work is the procurement of garment export order. Normally garment export order is found from the potential garment importers called garment buyer. Anybody wants to collect garments export order, should be able to convince the buyer. When the buyer is convinced about garment production, garments quality, garments costing and shipment ability of a garments exporter, he or she can think about issuing a garments export order. Without clear confidence among buyer & exporter from both sides, may be a risky business deal. If a garment exporter can continuously deal with only three or four buyer with buyer‟s satisfaction, it will be sufficient enough to run garment production & garment export business smoothly round the year. A successful negotiation outcome does not generally occur through luck, but by following a clear process. The process reflects the different levels of knowledge of the subject of negotiation, various parties and the way they communicate at various stages in the negotiation. The following is an outline of steps essential to effective negotiation: Researching the Needs of Both Parties The greater the knowledge a buyer has of their own and the supplier‟s requirements, the better able they are to construct an acceptable solution. The buyer must be clear about both the department mark-up to be placed on the product cost and the intended retail selling price so that she or he can judge the viability of the suppliers‟ products.
4.1.2.
MARKETING
MANAGER
ROLES
WITH
OTHER
FUNCTIONAL
DEPARTMENTS Production: Since marketing and production planning department work together in leshark, interaction are made with the production heads to fix the units of production like number quantity, the raw materials, the production rate, cost to be incurred are communicated.
Finance: Interaction with financial department for knowing the details about the outstanding payments to the debtors, receipts from creditors, paying forms issue, collection of statutory forms. The spending made must be coordinated. Also the production cost made is recorded with cost ants. Human Resource: The marketing department does not have any interactions with HR department regarding recruitment activities as they are made through managerial level. The marketing department is connected with HR department only regarding their attendance details. Systems: The updating of information regarding the garments and packaging are send by the systems department. All the information is send and communicated only through mail. Hence the all the departments are interconnected through server. 4.1.3 PRODUCTS AND PRODUCT POLICIES: The products of leshark global llp are,
Casual wear, T shirt,jean, kids wear,tros, sports wear,track suits,skirt. The Company has a reputation for quality garments has gained immense popularity and is the most sought after name by garments industry all over the world.
The Company exports to Japan, Hong Kong, Korea, Egypt, likewise there are 32 countries .
The goods are sent through buyer of the company. The products are sold on cash on carry basis. All the transactions are made through bank. Credits are allowed only to the well known traders and the credit policy is valid not more15 days. Within that the amount should be paid.The credit limit varies based upon the products purchased.The policies are not changed incase if new customers. All the policies are fixed in leshark and are not changed in any case.
4.1.4 PRICING POLICY The company does not reveal their pricing policy. There are 2 major categories based on which the prices are fixed. Market Conditions: Based upon the market conditions, such as the demand and supply, inflations and deflations, competition, substitutes and other factors. Possibility of Production: On the basis of the infrastructure, technology, quantity, quality, production cost , other expenses like transport etc are combined. Based upon the above factors, the prices for the products are fixed. 4.1.5 DISTRIBUTION STRUCTURE: The distribution channel in marketing department is through agents. The products are also exported to countries like Japan, Hong Kong, Korea, Egypt, etc. 4.1.6 MARKETING RESEARCH ACTIVITIES There is a separate department for Research and Development in Leshark globall llp. The viability for their products in the market is identified through this department. Frequent visit to the market is made by the research department and the of the customers is identified so that the products are regularly updated with new technologies. Thus new developments and strategies are adopted by leshark globall llp. 4.1.8 ANY OTHER PROMOTION AND CSR ACTIVITIES: There are CSR activities made. All the CSR and promotional activities are done through head office. Some of the CSR activities are,
Schools development
Environmental development
4.2 PRODUCTION DEPARTMENT: The production department is responsible for converting inputs into outputs through the stages of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable. Garment manufacturing is the mass production of clothing. Manufacturing garments entails a lot of planning and consciousness of schedule. The coordination of contractors and their timeliness plays a large role in meeting deadlines for your production. In most cases the production of garments is very time sensitive in order to ship goods to stores and boutiques for the season. Having a late order can reflect poorly on your business keep this in mind and add plenty of time in your schedule.
4.2.1 Purchase department: A store superintendent is the head of purchase department. Under his supervision a team of assistant merchandisers helps to purchase according to their quality and budget. First they purchase raw material from companies and suppliers in large quantity. Depending on orders they get from other companies, manufactures products. Company has customers all over the world. Most of the yarn manufactured is of export quality. So they offer high quality of services to foreign companies on conditions. More services of company are International operations and Indian operations are very less because of competition. First they purchase raw material from companies and suppliers in large quantity. Most of the yarn produced in spinning mill has export quality. So they target only on foreign markets. In company there is one store superintendent. He consolidate with the senior merchandiser for preparation of various materials at excess of stock which helps to continues the production process. Then store superintendent will give the list of materials needed for the process to the junior merchandiser. They make an purchase of materials at required quality at specified budget. At any stage the process of production should not be delayed in case of purchase department is the main aim of store superintendent.
4.2.2 PRODUCTION DEPARTMENT (SUPPLYING UNIT): T he purchase of yarn is done and manufacturing process starts at by supplying unit, required materials is done here. The junior merchandiser and assistant are incharge. They need to follow up the supplying unit process at what stage the material is present. The following supplying unit are done, Knitting dyeing compacting Knitting Process: Knitting is a method by which yarn is manipulated to create a textile or fabric. Knitting creates multiple loops of yarn, called stitches, in a line or tube. Knitting has multiple active stitches on the needle at one time. Knitted fabric consists of a number of consecutive rows of interlocking loops. As each row progresses, a newly created loop is pulled through one or more loops from the prior row, placed on the gaining needle, and the loops from the prior row are then pulled off the other needle. Knitting may be done by hand or by using a machine. Different types of yarns (fibre type, texture, and twist), needle sizes, and stitch types may be used to achieve knitted fabrics with diverse properties (colour, texture, weight, heat retention, water resistance, and/or integrity). Knitting is the basic process in garments where the yarn are converted into fabric clothes. Like weaving, knitting is a technique for producing a two-dimensional fabric made from a onedimensional yarn or thread. In weaving, threads are always straight, running parallel either lengthwise (warp threads) or crosswise (weft threads). By contrast, the yarn in knitted fabrics follows a meandering path (a course), forming symmetric loops (also called bights) symmetrically above and below the mean path of the yarn. These meandering loops can be easily stretched in different directions giving knit fabrics much more elasticity than woven fabrics. Depending on the yarn and knitting pattern, knitted garments can stretch as much as 500%. For this reason, knitting was initially developed for garments that must be elastic or stretch in response to the wearer's motions, such as socks and hosiery.
Dyeing Process: Dyeing is the process of adding color to textile products like fibers, yarns, and fabrics. Dyeing is normally done in a special solution containing dyes and particular chemical material. After dyeing, dye molecules have uncut chemical bond with fiber molecules. The temperature and time controlling are two key factors in dyeing. There are mainly two classes of dye, natural and man-made. The primary source of dye, historically, has generally been nature, with the dyes being extracted from animals or plants. Since the mid-18th century, however, humans have produced artificial dyes to achieve a broader range of colors and to render the dyes more stable to resist washing and general use. Different classes of dyes are used for different types of fiber and at different stages of the textile production process, from loose fibers through yarn and cloth to completed garments. Acrylic fibers are dyed with basic dyes, while nylon and protein fibers such as wool and silk are dyed with acid dyes, and polyester yarn is dyed with disperse dyes. Cotton is dyed with a range of dye types, including vat dyes, and modern synthetic reactive and direct dye.
Methods: Dyes are applied to textile goods by dyeing from dye solutions and by printing from dye pastes. Methods include direct application and yarn dyeing. Direct application: The term "direct dye application" stems from some dyestuff having to be either fermented as in the case of some natural dye or chemically reduced as in the case of synthetic vat and sulfur dyes before being applied. This renders the dye soluble so that it can be absorbed by the fiber since the insoluble dye has very little substantivity to the fiber. Direct dyes, a class of dyes largely for dyeing cotton, are water soluble and can be applied directly to the fiber from an aqueous solution. Most other classes of synthetic dye, other than vat and surface dyes, are also applied in this way. The term may also be applied to dyeing without the use of mordants to fix the dye once it is applied. Mordants were often required to alter the hue and intensity of natural dyes and improve color fastness. Chromium salts were until recently extensively used in dying wool with synthetic mordant dyes. These were used for economical high color fastness dark shades such as black and navy. Environmental concerns have now restricted their use, and they have been replaced with reactive and metal complex dyes that do not require mordant.
Yarn dyeing: There are many forms of yarn dyeing. Common forms are the package form and the hanks form. Cotton yarns are mostly dyed at package form, and acrylic or wool yarn are dyed at hank form. In the continuous filament industry, polyester or polyamide yarns are always dyed at package form, while viscose rayon yarns are partly dyed at hank form because of technology. The common dyeing process of cotton yarn with reactive dyes at package form is as follows:
The raw yarn is wound on a spring tube to achieve a package suitable for dye penetration.
These softened packages are loaded on a dyeing carrier's spindle one on another.
The packages are pressed up to a desired height to achieve suitable density of packing.
The carrier is loaded on the dyeing machine and the yarn is dyed.
After dyeing, the packages are unloaded from the carrier into a trolley.
Now the trolley is taken to hydro extractor where water is removed.
The packages are hydro extracted to remove the maximum amount of water leaving the desired color into raw yarn.
Compacting Process: The compacting machine is also called compactor or felt compactor. This machine is generally equipped with two steam chambers and two felt units. It pre-shrinks and stabilizes the T-shirts in order to avoid too much shrinkage after washing. This process with compacting felts gives handle to the fabric. The shrinkage required (between 2 and 10%) is mechanically given by two consecutive endless felts using high temperature and steam pressure. Compactor is a textile finishing machine which is designed specially for compacting 100% cotton knitted fabric like jersey, pique, interlock, plush, rib and sinker etc. as well as cotton blended fabric in rope form, changing the loft and dimensional stability of the fabric and presenting it to plaited form. Fitted with two felt compacting units which makes it to obtain top quality fabric, with minimized shrinking nature and a soft fluffy hand. Compactor is important machine in knit fabric finishing process. There are a lot of technical work which are done by compactor machine. The works are done by compactor machine are pointed out below, o GSM control of the knitted fabric. For high GSM, overfeed is increased and fabric width is decreased. For low GSM, overfeed is decreased and fabric width is increased. o Control shrinkage o Twisting control o Increase smoothness of fabric o Heat setting is done of fabric etc. In the production department there are various process, after the compacting process the fabric material is taken to the company for cutting section which is done by cutting master under the senior production manager and supervisor. They supervise the overall production department until the product gets packed. 3.2.3PRODUCTION PATTERN: The patterns of the approved sample garment are used for making production pattern. During production pattern making, sometimes it may be necessary to modify patterns design if buyer or appropriate authority suggests any minor modification. Grading: Normally for large scale garments production of any style needs different sizes to produce from a set of particular size of patterns, the patterns of different sizes are produced by using grade rule which is called grading.
Marker Making: For industrial garments preparation, marker making is a very important chapter for highest usage of fabric and for lowest wastage of fabric. This is a process which is performed to draw the pattern pieces on the fabric before cutting. This may be done by drawing the pattern pieces on the fabric directly or by drawing the pattern pieces on a thin marker paper and then placement the paper onto the fabric lay. So, we can define the marker as bellow. Marker is a thin paper which contains all necessary pattern pieces for all sizes for a particular style of garments in such a way that, fabric wastage would be least. The representation or drawing of the arrangement of identified garment pattern relevant to the cutting of a batch material. The marker is placed on the material and provides guideline for cutting. Fabric Spreading: The appropriate type of spreading surface is determined by the fabric type, spreading equipment, cutting method, cutting equipment, and the firm's quality standards. Spreading requires a flat, smooth surface. If the spreading surface doubles as a cutting surface, it also must be level. Spreading and cutting may be done on the same surface, but automated cutting often requires spreading and cutting to be done in adjacent but separate locations. Spreading and cutting surfaces are available in standard widths that correspond to fabric width. Narrow fabric can be spread on a wider table. A spreading surface needs to be about 10 inches wider than the fabric. Spreading tables may have tracks or rails placed along one or both sides of a tabletop or just a few inches off the floor. This track helps guide and control the spreader as it moves up and down the length of the table. With some types of equipment, the table tracks are geared to synchronize the movement of the spreading machine with fabric unrolling, in order to regulate tension. It is the process of arranging fabrics on the spreading table as per length and width of the marker in stack form. Normally height of the lay/fabric is limited up to maximum six inches high. But 4 inch to 5 inch height of the lay is safe. Fabric Cutting: After completing the fabric spreading then the fabric cutting is started. To cut out pattern pieces of garment components as per exact dimension of the patterns from a fabric lay is called fabric cutting. The term fabric cutting is only applicable for garments manufacturing technology. Fabric cutting should be done accurately as per exact dimension of the pattern pieces in the marker. Accurate cutting depends on methods of cutting and marker planning. If manual cutting
method is used, then cutting accuracy depends on sharpness of knife, skill ness of operator, and attentiveness of operator. Computer controlled cutting and die cutting have their self cutting accuracy. During fabric cutting, the friction between the fabric and the blade produces temperature in the blade; the temperature may be up to 300°C. If the fabric contains synthetic fibers, e.g. nylon, polyester, acrylic or their blends, then fused edge may result in the fabric. As because most of those fibers melt at around 250°C. Therefore, sticking of cut edge of fabric will increase the fabric wastage Moreover, the fused edge after cooling will form hard bid, which will be problem of irritation during use of garments. Working Procedure in Cutting Section: Follow production planning. Sample collect from sample section with pattern and garments approved. Lay order sheet/ratio sheet fill up by cutting section (fabric width, Item, Color etc.). Lay order sheet fill up ok then send to cad section for marker making. Marker making ok. Fabric requisition from cutting section to store for cutting according to plan. Fabric is coming in cutting table as per marker and cutting plan. Fabric matches to trim card by merchandiser approved fabric width & length as per marker. Then layering starts manual & machines all fabric. Pocketing and interlining. After lay then spread marker upon on the fabric. Marker check by pattern in quality people. Keep all document make & style. Color. And size wise send report to store & sewing line. Before cutting cutter man attach clamp. Gum tap on the layer. If marker have drill mark then need to drill. Cutting start by cutter man. Then group and ratio wise stricken. As per lay order sheet make bundle chart and send to i.e. Section for bundle card printing. As per bundle chart wise numbering. Then check.
If have any fault need to replace cut bundle roll and shad wise then bundle and send to line by input girl. If have any fusing, embroidery than send to this section.
To avoid the problem of fused edge formation, the following steps may be taken Reduce the height of the lay, Reduce the cutting speed, Use anti-fusion paper in the lay at regular interval, Sorting/Bundling: After cutting the entire fabric lay, all the garments components in stack form is shorted out as per size and color. To avoid mistake in sorting, it is better to use code number on each pattern. When the cutting process is complete, the entire garment components are inspected for required production. Printing / Embroidery: After the cutting process the sorted piece is taken to the printing or embroidery process. Textile printing is the process of applying colour to fabric in definite patterns or designs. In properly printed fabrics the colour is bonded with the fibre, so as to resist washing and friction. Textile printing is related to dyeing but in dyeing properly the whole fabric is uniformly covered with one colour, whereas in printing one or more colours are applied to it in certain parts only, and in sharply defined patterns. In printing, wooden blocks, stencils, engraved plates, rollers, or silkscreens can be used to place colours on the fabric. Colourants used in printing contain dyes thickened to prevent the colour from spreading by capillary attraction beyond the limits of the pattern or design. Embroidery is the handicraft of decorating fabric or other materials with needle and thread or yarn. Embroidery may also incorporate other materials such as metal strips, pearls, beads, quills, and sequins. Embroidery is most often used on caps, hats, coats, blankets, dress shirts, denim, stockings, and golf shirts. Embroidery is available with a wide variety of thread or yarn color. The basic techniques or stitches on surviving examples of the earliest embroidery chain stitch, buttonhole or blanket stitch, running stitch, satin stitch, cross stitch remain the fundamental techniques of hand embroidery today.
Classification: Embroidery can be classified according to whether the design is stitched on top of or through the foundation fabric, and by the relationship of stitch placement to the fabric. In free embroidery, designs are applied without regard to the weave of the underlying fabric. Examples include crewel and traditional Chinese and Japanese embroidery. Cross-stitch countedthread embroidery. Tea-cloth, Hungary, mid-20th century Counted-thread embroidery patterns are created by making stitches over a predetermined number of threads in the foundation fabric. Counted-thread embroidery is more easily worked on an even-weave foundation fabric such as embroidery canvas, aida cloth, or specially woven cotton and linen fabrics although non-even weave linen is used as well. Examples include needlepoint and some forms of black work embroidery. Hardanger, a whitework technique: In canvas work threads are stitched through a fabric mesh to create a dense pattern that completely covers the foundation fabric. Traditional canvas work such as bargello is a countedthread technique. Since the 19th century, printed and hand painted canvases, on which the printed or painted image serves as a guide to the placement of the various thread or yarn colors, have eliminated the need for counting threads. These are particularly suited to pictorial rather than geometric designs such as those deriving from the Berlin wool work craze of the early 19th century. In drawn thread work and cutwork, the foundation fabric is deformed or cut away to create holes that are then embellished with embroidery, often with thread in the same color as the foundation fabric. These techniques are the forerunners of needle lace. When created with white thread on white linen or cotton, this work is collectively referred to as white work. Sewing Section: After receive the garments components from cutting section, all the garments parts are ed and sewn as sequentially. Obviously all the components are sewn respects on buyer requirement. Sewing section is the most important department of a garment manufacturing industry. Sewing machines of different types are arranged as a vertical line to assemble the garments. Sequence of types of sewing machine arrangement depends on sequence of assembling operations. In company the sewing process is taken place after the product is received from the printing or embroidery process. Now there are around 60 to 70 working under this process. The various process takes place to complete the stitch. These process is done under the
supervision of the supervisor. They help the workers to supply the right material at right time from the store superintended. There are four senior production manager and 10 supervisor not only take care of the sewing section alone, they take care of the product until the product gets inspected and packed. For over lock rs.350 per shift is pay for the labour where work upto 6.00pm, for flat lock rs.350 per shift is payed. Sewinger will stitch and payment is according to the piece rate. Trims And Accessories: To full fill the design objectives we need different kind of materials. Fabrics are the main material, which used for garment manufacturing. We need other materials also, which make the garments aesthetic, functional and commercially required. Usually other than fabrics this material used for making garments are called trims and accessories. Trims: The Raw materials which are used in the sewing section other than fabric are called trims. These are the materials which are directly attached with the fabric to make a garment completely wearable. Accessories: The Raw Materials which are used to make a garment attractive for sale and packing accept fabric and trims are called accessories. They are not directly attached with the garment. It is used only to make the garment attractive.
Thread sucking: After completing garments sewing, all the garments are come into the finishing section. The extra threads are removing from the garments surface by thread sucking. Side seam check: After thread sucking then the garments side seam are checked very carefully. If faulty side seams are found, the faulty garment is send to the sewing room. Due to seam pucker or stitch formation, the faulty side seam is occurred in the garments. Check spot and remove: When checking the side seam is complete, the garments are checked for spot. If any spot is found in the garments, the spot will remove by chemical using.
Spot name and use remove chemical: Oil spot : A.D Max Shing spot : G.R.O Ink spot, etc. : B.T.S Ironing: After ing through the inspection table, each garment is normally ironed/ pressed to remove unwanted crease and to improve the smoothness, so that the garments looks nice to the customer. Folding of the garment is also done here for poly packing of the garments as per required dimension. Tack pegging: After ironing is done then the sale price or tack packs are attached with the garments. Metal free zone: After completing the take packing then the garments are through into the metal free zone area. If any type of metal is present in the garments, the metal is removing in this stage. Folding: When the metal free operation is complete then the folding is done. Packing: The Accessories which are used for garment packing during garment shipment to buyer are called packing accessories. Packing accessories are depended on garment packing and folding etc which is instructed by buyer. Poly bag, packing board, tissue paper, hanger, scotch tape, gum tape, carton etc are part of packing accessories. Packing should be varying (as per buyer garment packing instruction) in different orders as per instruction of buyer garments packing. , The number of one carton garments it is weight on depend carton quality. Understand quality of carton follow 3 ply, 5 ply, 7ply. The number of carton is high ply number it is very much it is hard and strong. The sea frights depend on dimension of the export carton and the air frights depend on dimension of the export carton or gross weight of the carton. After folding the garments then it‟s packed by poly bag.
3.2.4 INVENTORY MANAGEMENT: The inventory management is planned according to the amount of finished goods. The number of days the stock can be stored, the capacity of the goods are estimated. The raw material here is fabric or yarn. The work in progress goods are stored for three days maximum. The Inventory Management system used in the organization is, ABC Inventory System. The goods are classified as Higher, Medium and Lower priority. The goods are mostly stored in low priority as the cost incurred for maintenance will be low.Only during priority time the goods are maintained in High level. Those goods maintained in high priority are dispatched as soon as possible as the maintenance cost will be more. The orders for the goods are based on the lead time.
Sewing machine
packing department
Embroidery machine
4.3 FINANCE DEPARTMENT: The ant creates reports from the recorded financial transactions recorded by the bookkeeper and files forms with government agencies. There are some common methods of bookkeeping such as the single-entry bookkeeping system and the double entry bookkeeping system. Bookkeeping, in business, is the recording of financial transactions, and is part of the process of ing. Transactions include purchases, sales, receipts and payments by an individual or organization. There are some common methods of bookkeeping such as the single entry bookkeeping system and the double entry bookkeeping system. There are separate and particular books maintained in the firm. They are also known as s are maintained on yearly basis where purchase and sale records from the firm is maintained and kept in the office of the firm itself. Managing director and other directors go through those s whenever they feel like going through it. Payroll, Cash collections, Cash payments, Procurement and inventory, Property ing are responsibilities of finance department.
4.3.1 SOURCES OF FINANCE Reserve capital Partners fund Bank loan Investments 4.3.2 ing Practice: There are one ant and two assistant for the maintenance of finance statement. The following are the ing practices carried on in the firm. They are: Raw material purchase . It contains types of material purchased. Production . It contains types of product manufactured. Sales . It involves types of products sold. Financial ing which is maintained by ant manager in the firm. 4.3.3 Book Keeping: Bookkeeping, in business, is the recording of financial transactions, and is part of the process of ing. Transactions include purchases, sales, receipts and payments by an individual or organization. The ant creates reports from the recorded financial transactions recorded by the bookkeeper and files forms with government agencies. There are
some common methods of bookkeeping such as the single-entry bookkeeping system and the double-entry bookkeeping system. But while these systems may be seen as "real" bookkeeping, any process that involves the recording of financial transactions is a bookkeeping process. There are separate and particular books maintained in the firm. They are also known as s are maintained on yearly basis where purchase and sale records from the firm is maintained and kept in the office of the firm itself. Managing director and other directors go through those s whenever they feel like going through it. Separate books for raw material purchased, sales, payments and receipts and transport to and from Mill etc. Various heads of s: The following are the various heads of s in the firm. They are as follows Purchasing Process Material handling Quality Store Dispatched 4.3.4 Budgetary technique: Three types of budgets are being prepared by the ant at a given period of time. They are as follows. 1. Preparing and revising budgets Changes to cost will have impact on cash, creditors and purchasing budgets. If there is a change to the selling price, debtors, cash, production, sales, purchase and creditors budgets will be affected. 2. Monitoring, budgets should be constantly monitored in order to compare budgeted costs with actual costs, as well as to identify and explain the root cause of variances. 3. Control measures cutting down on waste, looking for sources of unnecessary cost, Increasing advertising and promotions.
4.3.5 Working Capital Requirement: There is always a need for working capital in order to run the day to day activities of an organization. Though it has enough capital to fulfil the requirements of day to day activities firm prefers to take capital from the bank every year in the beginning of financial year.
Costing, Internal Auditing: The methods used for costing is confidential. Internal auditing is done by internal audit.
Preparation of financial statement: Preparation of financial statement is done by ant in the firm he prepares the following by taking the s as a source. He prepares profit and loss , trading and then balance sheet of yearly basis which is then scrutinized by managing director on yearly basis. CREDIT POLICY
A separate is to be maintained by the unit ant for recording bill transactions.
As and when bills are discounted, bank to be debited and bills
discounted to be credited.
The unit ant must closely watch the honoring of the bills on the due date by the parties and as soon as the bills are honored bills discounted A/c to be credited and credit the party's .
In the annual s “Bills discounted" is required to be disclosed under Secured Loans. When this is done, there is no necessity to disclose the amount as contingent liability in the annual s.
Each unit is considered as a "Profit center". Each unit is expected to make reasonable return on the investments. Hence, it is advisable to fix credit period for the settlement of dues within the units. Transferee unit is expected to settle the dues within the credit period allowed otherwise transferor unit will charge interest on the overdue balance from the date of expiry of free period.
Credit limits to be fixed in respect of all customers with the prior approval of Managing Director.
While fixing credit limits following points must be taken in to consideration.
A realistic estimate of customers‟ worth is to be done.
Customer's standing in the trade Period of association with us Past performance of the customer Customer's willingness to offer securities
Customers' credit limits are to be reviewed once in a month and fresh approvals to be obtained.
Customers' credit limits to be checked by the unit manager before orders are accepted
Credit to customers for shortages and losses in transit are to be matched with the claims lodged with carriers/insurers.
Credit to customers for remittances must be posted only from the entries in the cash book.
Returned goods must be taken in to stock immediately
Credit Note must be issued to the customer for the goods returned.
Credit Notes must be pre-numbered
Yarn Clerk is responsible for the unused Credit Notes.
Credit Notes must be authorized by the unit Manager.
Unit ant must compare Sales Return Notes with Credit Notes.
Unit ant must check the Credit Notes
4.4 HUMAN RESOURCE DEPARTMENT: Providing HR related consultancy and advisory services to line managers given that every manager is a human resource manager. The HR department manages the employment contract by Ensuring the conditions of a contract are fulfilled i.e. offer, acceptance and consideration. Ensuring principles of natural justice are adhered to. i.e. One can only be disciplined if he/she breeches a regulation, policy etc. One should be allowed to defend himself, no person should judge in his own cause. Ensuring and conditions of service are in place and followed. To terminate service, due notice is given or payment in lieu of notice is made. When HR department faces legal challenges, it consults the Legal Department.
4.4.1 Nature of Human Resource Management: Have moved from Personnel Management to Human Resource Management. HRM is the acquisition of people with requisite knowledge, skills, Attitude and competencies and managing them in a manner that leads to the achievement of organisational goals. Organisation Strategy: Strategic management has four elements: goal setting, strategy formulation, strategy implementation and strategy control. Strategy direction i.e. corporate vision, strategic goals, strategy. Policy Human Resource strategy is a central philosophy of the way that people in the organisation should be managed. y is a guideline for decision making. It requires consistent and mutually reinforcing policies in all areas of human resource management. It usually involves descriptions of required employee behaviour and sometimes of the culture of the organisation. Human Resource strategy themes currently centre around quality, customer orientation, flexibility, commitment, involvement, leadership, team working and continuous learning. 4.4.2 Human Resource Planning: Determine the HR needed in an organisation. Assess the HR that is in the organisation. Determine the shortfall in HR. Make a plan for covering the HR shortfall. Human Resource planning activities are all interdependent & continuous It deals with people; therefore planners need to plan for what is acceptable and feasible. The plans cover areas such as people supply, utilisation, communications, training and development. It also covers performance, appraisal, organisation, rewards, employee relations and many others.
4.4.3 Recruitment & Selection procedure: The firm has no as such recruitment or selection procedure because employees are already appointed and organization always doesn‟t need employees as the work is already organized. Only the workers recruitment is done frequently which is handled by labour welfare HR. Training department head appoints female and male workers for factory work and explains them their duties and responsibilities.
4.4.4 Training & Development initiatives: Training to the new workers is given by the training department head for 10 to 15 days. This is the best method adopted according to the factory manager as one could explain their work in an effective way. The development of the works of new worker is kept in notice by training department head of Mill. Initially work given to the workers is very less. Then gradually after knowing their calibre to work in that conditions they are assigned their level of works and wages are given them accordingly. 4.4.5 Performance Appraisal method: Performance of workers is crucial thing which an organization should take into consideration which results to the encouragement of worker and make them more work oriented. The performance of each worker and rewards them by giving them extra pay. There is a record maintained by the manager as well as factory manager about the performance of employees and constant notice is kept on those employees who could work the least. They are encouraged by giving easier task and bounding time limit to them. Compensation and reward system: The minimum salary for workers depends upon the type of work. Different sections have different type of work as workers undergo for work for 8 hours per shift. Any male worker taking up the difficult task in the factory requires his extra energy. Most of them are involved in maintenance and production process. Their designation in the Mill is Supervisor. They rewarded by paying extra and encouraging them to work effectively. OT (Over Time) duty time depends on another person. If they do overtime duty, compensation also depends on duration of time they spend on duty. In case of recruitment is needed they in the newspaper and head of the labour required department will make an direct interview and selection process takes place, major requirements is the experience.
3.5 SYSTEM DEPARTMENT: All most all the departments have systems with Windows XP as their platform. All the data are stored in Excel, word and PDF formats. All the units are interconnected with servers and all the confidential documents are sent only through the server. There is no MIS or ERP in the company at present, But Implementation of ERP is under process. Fox Pro, Tally and SQL are the software used currently used by the organization. After implementation of ERP, this may change. The website for the organization is www.lesharkgloballlp.com
CHAPTER V INDEPTH STUDY OF A PROCESS/SUB FUNCTION Since The Leshark globall llp is garments industry, the purchase department and the Stores department plays a lead role in the company. Only if the purchase and the stores department functions, the production flow continuous. STORES DEPARTMENT: Stores department is the first sub function of production, where the raw materials, work in progress goods and the finished goods are stored. The raw material in garments is fabric or yarn which is not a seasonal good. Hence they buy at larger quantities and store them in the Stores department. Since these materials are bought for a whole year, they are utilized frequently. These materials are stored in the form of ABC Inventory system where the items are stored based on their priority. As these materials are used frequently, they are stored in the low priority standard. If high priority is required, the cost of maintenance would be high. The raw materials which are supplied to the production department, the work in progress materials and the finished goods are stored in ABC system format. They don‟t have the separate area for storage the raw materials. They stored the raw materials in production area itself. PURCHASE DEPARTMENT: The first function of textile mills is purchasing the raw materials. Raw materials include purchasing of cotton. Before purchasing the samples of cottons are received after checking it the purchasing order is sent. The purchase is done through the brokers, commission agents or through the direct dealing of the spinning mills. While receiving the yarn bags the manager has to check for the quality. Then after receiving the yarn bags the weight of the bags are checked. There are usually two types of yarn wrap and weft yarn. The counts are usually 20‟s, 30‟s and 40‟s type of cottons they are purchasing verities of cotton. They purchase the cotton as bale wise. They are purchasing nearly 200 bales at one time. They are using Lorries and tempos as their mode of transport for their delivery of raw material. The required raw materials are also purchased from various cities and towns.
The materials details regarding the stock will be informed by the stores department to the purchase department. The purchase department first verifies for the quality of the raw materials so that the purchase manager can assume which quality of raw material can give their expected quality finished goods. At first, the samples for the materials are ordered. These samples are tested by the quality checker which is also a part of the purchase department. If the quality test is satisfied, then the order for the material is placed based on the lead time. When the materials arrive, they measured through Weigh Bridge. This is to check whether the quantity ordered matches with raw materials arrived. A part of the raw materials are tested for quality i.e., the material ordered should match with the sample tested. If they match, then the material is sent to the production process. During the production process if there is any defect identified in the raw material, purchase returns are made. The same procedure is followed in the sales department. The finished goods are packed and sent to the dealers and the agents of different states.
CHAPTER VI REPORT ON FUNCTIONAL SPECIFIC PROBLEM The Leshark globall llp Ltd is a well established and well known garments which is existing 1987. Though the technology is much developed, the company still believes in the old methods of record keeping and system. Various ERP methods are been introduced, but the company has only now taken step to implement it and it is only in the initial stage. There is only one server for all the units in the company. During my internship period, the server got crashed and the information which was to be sent was pending and also delays in the work. The above are some of the minor issued noticed by me during my internship period. The major problem identified in the company is that there is no specified marketing department in the organization. The marketing activities are carried out by the HR and all the activities are done by the HR manager. Since there is no proper marketing system followed in the organization. When I asked about marketing department they said there is no separate marketing department. The HR manager will take part of it. Since we have only one buyer of this company. We focusing only one customer at a time its give effective in producing quality goods. The company has efficient no. of workers so they concentrate more no. of customer at a time. Its give more profit and growth of the company also increased.
CHAPTER VI CONCLUSION This internship project has helped to learn the organizational procedure and also how the theoretical part of the classes is applied practically in the organization‟s procedure. I also learned the procedures and process followed in each and every department of the organization. As this garments company is a well established and in the market for a long period, the employees are very much experienced and knowledgeable. Therefore the experience in The Leshark globall llp gave me good learning which are applicable and useful for my future career.