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Production process & co-ordination

  1. 1. An Internship Report On Production Process & Co-ordination of Ha-Meem Group:A Study on Next Collections Limited. Date of Submission: 04th July, 2013 1
  2. 2. An Internship Report On Production Process & Co-ordination of Ha-Meem Group: A Study on Next Collections Limited. Submitted to: Department of Business Administration Northern University Bangladesh Prepared By Jewel Rana ID: BBA-080302850 BBA (Major in Accounting) Department of Business Administration Northern University Bangladesh Date of Submission: 04th July, 2013 2
  3. 3. Letter of Transmittal 04 July, 2013 Mr. Bulbul Ahmed Senior Lecturer & Coordinator Placement Division Faculty of Business Northern University Bangladesh Subject: Submission of Internship Report. Dear Sir, With due respect, I would like to inform you that it is a great pleasure for me to submit the Internship report titled on “Production Process & Co-ordination of Ha-Meem Group: A Study on Next Collections Limited.” as requirement for BBA program. This internship report attempts to describe my observation and learning during the study. I have tried my best to prepare this report as comprehensive and informative as possible within the time schedule. Due to various limitations, there may be some mistakes for which I am responsible. For any further explanations about the report, I will be gladly available to clarify all the things. Sincerely yours, ____________________ Jewel Rana ID No: BBA-080302850 BBA (Major in Accounting) Department of Business Administration Northern University Bangladesh 3
  4. 4. Student Declaration I do hereby declare that this report entitled on “Production Process & Co-ordination of Ha-Meem Group: A Study on Next Collections Limited.” Submitted by me to Northern University Bangladesh (Dhanmondi Campus) for the degree of Bachelor of Business Administration (BBA) is an original work. I also declare that it has not been submitted earlier either partly or wholly to any other University or Institution for any Degree, Diploma, Associate-ship, Fellowship and other similar title or prizes. …………………… Jewel Rana ID No: BBA-080302850 BBA (Major in Accounting) Department of Business Administration Northern University Bangladesh 4
  5. 5. Certificate This is to certify that the Internship report entitled on“Production Process & Co-ordination of Ha-Meem Group: Next Collections Limited.” submitted in partial fulfillment of the requirement for the degree of Bachelor of Business Administration (BBA), Northern University Bangladesh. I also certify that under my supervision and guidance this report has been prepared by Jewel Rana ID No: BBA-080302850 Major in Accounting and it has not been submitted earlier either partly or wholly to any other University or Institution for any Degree, Diploma, Associate-ship, Fellowship and other similar title or prizes. The report is approved and accepted in form and quality. ……………………. Supervisor Md. Abdullahel Kafi Assistant Professor of Accounting …………………………………… Professor Saeed Alamgir Jajar Dean Faculty of Business Northern University Bangladesh Department of Business Administration Northern University Bangladesh 5
  6. 6. Acknowledgement First, I would like to express my gratitude to Almighty “ALLAH” for giving me the strength to successfully attend the internship program at Next Collections Limited. of Ha-Meem Group and complete the report within the schedule time. After that I will be indebt forever to my internship supervisor Md. Abdullahel Kafi Assistant Professor in Accounting, Department of Business Administration, Northern University Bangladesh from the beginning of this Internship work he helped me in choosing the topic of the report. She also shows me how I should proceed to attain the appropriate knowledge involved in Internship. I also found him helpful in setting objectives of report, getting the appropriate information to meet objectives, in reporting the information both in writings& in graphs. I shall remain ever grateful to Sree Romesh Vat Senior C.E.O, of Next Collections Limited. for kindly accepting me for practical orientation program in his Organization. And Md. Mamun senior Production Co-ordinator has played the most vital role to aid me with practical environmentof the organization. Last but not the least; I would like to thank my family. The constant inspiration and guidance kept me focused and motivated. I am grateful to my father for giving me the life I ever dreamed. I can’t express my gratitude for my mother in words, whose unconditional love has been my greatest strength. 6
  7. 7. Overview of the organization: Ha-Meem Group of Bangladesh has an excellent track record in apparels manufacturing for the last twenty years and are now ranked the 2nd largest in the country. The current turnover of Ha-Meem is 400 million US Dollar. Company is ornamented with 26 garments factories consisting with 250 lines,a unique Denim mill, Sweater factory, 5 washing plants, Embroidery and Printing factory, Carton factory, Poly bag industry, Label factory, Jute mill, Chemical formulation plant, Tea States, Transport company, News Channel and a widely circulated national daily Newspaper with a vast number of manpower more than 40,000. Its plans to install Spinning Mills at 2015. Ha-Meem Group started operation is Bangladesh's first at 1993. The company was an effort by MR. A. K. AZAD(founder chairman) and the Ha-Meem Group Managing Director.Next Collections Ltd.of Ha-Meem Group first started its operation at January 01, 2002. It was started as Sub Company of Ha-Meem Group. This company has around 4004 employee and workers including upper label management personnel. Next Collections limited, Beron, Ashulia, Dhaka is one of the profitable factory for Ha-Meem Group. Thiscompany provides a great amount of profit every year. A huge number of productions are per day. There are different types of quality-full products.The organization makes all type of Bottoms and Tops Pant, Shirt, Ladies Dress, Overall, Short all, Romper, Sweater and more. The organization is very specialized in Denim Garments. Nevertheless, this can also handle any kind of Cotton, Twill, Canvas, Cordoury, Poplin and any stretch fabric. As a RMG they export apparel to others country. It’s an export oriented organization. These are working with buyers like American Eagle, GAP/Old Navy, T.C.P, JC Penney, Kohl's, Squeeze, Sears, VF Asia, Target Store, Charming Shoppes, Wal-Mart in USA market and H & M, Carrefour, Zara, Hema, M & S Mode, ETAM, Western Store, Migros, Celio and PNC in the European market. 7
  8. 8. This Company is going forward and taking every step with a specific Mission and vision. Ha-Meem Group Mission is to create conditions and infrastructure for sustainable procurement and production of textile products. They wish to: Design, manufacture and sell high quality and affordable apparels and accessories. To use latest technologies in manufacturing process. To provide a safe working environment for the employees and workers. To operate the business with high motivation and deep commitment. Serving and supporting the society in which we work. Ha-Meem Group vision is to become Bangladesh’s leading sustainable apparel company by producing quality products and observing highest social, economic and environmental standards. Its aim is to deliver the highest quality products and prompt services to its customers. Ha-Meem Group vision is three-fold: Lead the textile industry in Bangladesh. Observe highest social, economic and environmental standards. Maintain a committed and satisfied clientele. Ha-Meem group believes in its uncompromising commitment& product quality to fulfill its customer needs and satisfaction and to become their fond of in RMG sector. Taking cue from its pool esteemed clientele, Ha-Meem group intends to pave the way for a new era in garments sector that upholds and epitomizes in future. 8
  9. 9. Tables of Content Topic Page number Letter of transmittal Student Declaration Bona fide Certificate Internship Certificate Acknowledgement Overview of the organization CHAPTER ONE INTRODUCTION Executive Summary 1.1 Introduction 1.2 Scope of the study 1.3 Objective of the Report 1.4 Methodology 1.5 Limitation of the report CHAPTER TWO DATA COLLECTION, ANALYSIS & FINDINGS 2.1 Production process 2.2 Process of Garment Manufacturing 2.3 Reporting & Co-ordinating 2.4 Costing of Garments & Cost Sheet 2.5 Production Report and Analysis 2.6 Major Findings 2.7 SWOT Analysis of Ha-Meem Group 9
  10. 10. CHAPTER THREE CONCLUSIONS AND RECOMMENDATIONS 3.1 Conclusions 3.2 Recommendations Reference List of Tables Table no. Subject 2.1 Daily Cutting Report 2.2 Daily Wash Report 2.3 Cost Sheet of a single product 2.4 Cost Sheet of an year 2.5 Three Months Production report 2.6 Page No. Yearly Production Report List of Graphs/Figures Graph/figure no. Subject 2.1 Unit Product Cost Analysis 2.2 Three Months production analysis 2.3 Page no. Yearly Production analysis 10
  11. 11. Chapter ONE .………………………………….. INTRODUCTION 11
  12. 12. Executive Summary This research report, a partial requirement of BBA program, is done on “Production Process & Co-ordination of Ha-Meem Group: A Study on Next Collections Limited.” is approved by my supervisor Md. Abdullahel Kafi. This report contains my practical observations and experience from Production process and report maintenance of Next Collections Ltd. I have obtained firsthand Knowledge about Garments sections and its productions process section. All though the duration of the program was not long enough, I tried to visit and observe the entire sector. The entire operation of the garments has been progressing according to rules and regulations. A garments sector occupies an important place in a nation’s economy by earning foreign currency. This report aims toward providing an overview on the production process and their overall report what they maintain to go forward by legal action and need to keep their information strong. This report is prepared within the broader framework of internship program of Department of Business Administration, Northern University Bangladesh. While preparing this report it has been tried to reveal the insights of the production process and report system of Ha-Meem Grope at Next Collections Ltd. The main objective of the report is to get practical experience about official activities and observe the production process and co-ordination of NCL. Specific objective of this report is to know the how to produce a product, how they make their report, how they co-ordinate their all production process and report. For preparing this report primary and secondary data have been used. Data have been collected from two sources. In primary source data have been collected by face to face conversation with officials and others. Secondary source of data collection include Annual report of NCL. At the time of preparing the report there were some findings and these are based on my practical experience. Its plan and reform the service improvement strategy to retain the higher performance level, customer satisfaction and to compete with challenges. Mainly for keeping the foreign buyers those buyers deal with them and import the product into their country from NCL. 12
  13. 13. 1.1 Introduction Bangladesh, a country of multidimensional potentiality, has been recognized as global performer in garments arena. Almost 5000 factories with 3 million work forces, putting their hands significantly to different supply chain of global brands. Thus garments export swelled to 12 Billion US Dollar. Ha‐Meem Group, a top ranking apparel manufacturer in Bangladesh exporting to USA and Europe for a long time. Company produces 4 million pieces of woven garments per month with the assortment of infant to adult in men and women. In today’s business world, some garments have made a strong place in the market and “Ha-Meem Group” is one of those names. It is an unconventional and production institution that performs most of the standard services and production activities. 1.2 Scope of the study This is a large scope for doing the internship in this kind of organization. Internship provides practical knowledge to the students about their practical field. BBA graduate students can share their managerial knowledge with the organization. The students have a large opportunity to acquire knowledge about the organization, organizational environment, participation with others and etc. The students can familiar with organizational culture. I have started my internship program here at Next Collections Ltd. of Ha-Meem Group, Beron, Ashulia, Dhaka. My work started on 08th January 2013 in production coordination section. After joining I followed what they do, how maintain the office, discipline, how handle the customer, behavior’s with employee etc. Then I worked in department by myself. I tried to know how a production process is being completed at Next Collections Ltd. Beron, Ashulia, Dhaka. After studying this report you will be able to know about the “Production Process & Co-ordination of Ha-Meem Group: A study on Next Collections Limited.” 13
  14. 14. 1.3 Objective of the Report The objective of this report is to focus on production process activities and all production coordination in report at garments sector with corporate working environment and also gathering knowledge from the expert who are leading and making it possible to enhance the growth of a country rich by earning more foreign currency. The objective of this report can be summarized as follows:  General objective  Specific objective General Objective: The general objectives of the study are to prepare and submit a report on the topic of Production Process & Co-ordination of Ha-Meem Group: A study on Next Collections Limited. Specific Objective:  To know Production Process & Co-ordination of all production in report of Ha-Meem Group: A study on Next Collections Limited.  To understand the garments factory environment of Bangladesh.  To submit the practical work as a paper work that I have in my three months internship of BBA program.  To know how a garments do their overall task by a process activities. 14
  15. 15. 1.4 Methodology For preparing this report primary and secondary data have been used. Data have been collected from annual report, official website, business record and daily monthly records. Table, chart and graphical methods are used to prepare the report. Statistical approach and MS excel are used to analyze and present the data. 1.5 Limitation of the report While conducting this study, I have faced certain limitation. They are as follows: o Sufficient record, publications were not available as per my requirement. o Non- availability of the most required data. o For the restriction to disclose various information of a garments. So for this it was a great difficulty in preparing the report. o Large – scale research was not possible due to time constraints. o Non availability of data in a systematic way. o Data finding was a troublesome work because of Shortage of time. 15
  16. 16. Chapter TWO ………………………………………… DATA COLLECTION, ANALYSIS &FINDINGS 16
  17. 17. As apparel industry Ha-Meem Group has a great reputation for Quality and on time delivery is the corner stone of its success. Customer’s satisfaction is the key to the organization establishment. The organization ensures timely shipment and delivery to gain faith and confidence to the organization valued customer. The organization can retain the quality and the position in a pick point in apparel section for a long time due to excellent in house facility of high standard Washing Plant, Sand Blasting and Grinding. During the recent time, the RMG sector appears as a multi-billion dollar manufacturing industry in the economy. HaMeem Group participate a great step in this sector to strong our economy. I have completed my internee with the position of production coordinator. I have appeared a vast arena of RMG sector with a bright future of Bangladesh for exporting readymade garments. As an internee I worked at Ha-Meem Group: Next Collections Ltd. During my internship I have worked in two areas. I show my working area in chart. Department Production process Report Making 17
  18. 18. 2.1 Production process Sector Duties in Production Department: At first I assigned to work in production coordination section. In here I have learned how a garments being prepared from the initial stages, what they do in every process, I have learnt every process work and I have tried to help them practically. There have some process in production section that’s maintained in a chain of command those are: 1. • Design / Sketch 2. • Pattern Design 3. • Sample Making 4. • Production Pattern 5. • Production Pattern 6. • Grading 7. • Marker Making 8. • Spreading 9. • Cutting 10. • Sorting/Bundling 11. • Sewing/Assembling 12. • Inspection 13. • Pressing/ Finishing 14. • Final Inspection 15. • Packing I have appeared all of the above process and tried to capture what to do in every process and report to management is it being in proper way or not. 18
  19. 19. 2.2 The Step-by-step Process of Garment Manufacturing Garment manufacturers are primarily engaged in the design, cutting and sewing of garments from fabric. Some manufacturers are contractors or subcontractors, which generally manufacture apparel from materials owned by other firms. Larger manufacturers often contract production to many such contractors or subcontractors in the U.S. and abroad. Some manufacturers are vertically integrated, producing the textiles from which they make garments, or even operating retail outlets too. In a garments there have a chain of command process of producing a garment. The process is given sequentially bellow: Organizational Areas in Garment Manufacturing: On industrial basis there are certain areas or sequence through which garments are manufactured. 19
  20. 20. 2.2.1 Design / Sketch: In the garment manufacturing the first step is designing the sketch for the dresses that have to be prepared. For this purpose the designer first draw several rough sketches in the sketch book. The designer does not go for details at this moment but he rather let his creativity flow on the paper and he draws many sketches. Later these sketches are analyzed by a panel of designers. They finally select few out of them. These few sketches are rendered in detail separately or in the form of a single collection. The designer also draws working drawings along with the sketch. Working drawings are flat drawing of the sketch and it help pattern maker in understanding the patterns involved in the construction. 20
  21. 21. 2.2.2 Pattern Design: The pattern maker now develop first pattern for the designs in any one standard size. This is made by pattern drafting method and the purpose of making this pattern is to create the sample garment for test fit. 21
  22. 22. 2.2.3 Sample Making: The first patterns are sent to the sewing unit for assembling them into garment. This is usually stitched on calico or muslin which is an inferior quality of fabric and it reduces cost. This sample is constructed to analyze the pattern fit and design too. After the sample garment is stitched it is reviewed by a panel of designers, pattern makers and sewing specialists. If any changes have to be made they are made at this time. 22
  23. 23. 2.2.4 Production Pattern: The pattern design is now taken for creating the production patterns. The production pattern is one which will be used for huge production of garments. The pattern maker makes the patterns on standard pattern making paper. These papers are made-up of various grades. Garment patterns can be constructed by two means: manual method, CAD/CAM method. Today many companies have developed CAD. A garment sewing pattern or garment fabric & patterns draft is developed by calculating, taking account of the following measurements: 1. Direct Sample. 2. Specification Sheet/ Measurement Chart. 3. Actual body size measurements. 4. Ease Allowances. 5. Sewing Allowance. These allowances are different for different type of fabrics and patterns. 23
  24. 24. 2.2.5 Grading& Measurement The purpose of grading is to create patterns in different standard sizes in proper measurement. Grading a pattern is really scaling a pattern up or down in order to adjust it for multiple sizes. Pattern sizes can be large, medium and small or else there are standard patterns of size 10, 12, 14, 16 and so on for different figure and statures sizes. This is generally how we get S M L XL XXL sizing. 24
  25. 25. 2.2.6 Pattern grading: Pattern grading by manual method is a cumbersome task because the grader has to alter the pattern on each and every point from waist belt to crotch, Raise seam, Back Raise, Inseam etc. by using CAD it is much easier and faster. 2.2.7 Marker Making: The measuring department determines the fabric yardage needed for each style and size of garment. Computer software helps the technicians create the optimum fabric layout to suggest so fabric can be used efficiently. Markers, made in accordance to the patterns are attached to the fabric with the help of adhesive stripping or staples. Markers are laid in such a way so that minimum possible fabric gets wasted during cutting operation. After marking the garment manufacturer will get the idea of how much fabric he has to order in advance for the construction of garments. Therefore careful execution is important in this step. Computer marking is done on specialized software. In computerized marking there is no need of large paper sheets for calculating the yardage, in fact, mathematical calculations are made instead to know how much fabric is required. 2.2.8 Spreading: With the help of spreading machines, fabric is stacked on one another in reaches or lays that may go over 100 feet (30.5 m) long and hundreds of plies (fabric pieces) thick. 2.2.9 Cutting: The fabric is then cut with the help of cloth cutting machines suitable for the type of the cloth. These can be band cutters having similar work method like that of band saws; cutters having rotary blades; machines having reciprocal blades which saw up and down; die clickers similar to die or punch press; or computerized machines that use either blades or laser beams to cut the fabric in desired shapes. There have to maintain quality during cutting. 25
  26. 26. Cutting quality control: In cutting section quality is insuring in two stages. a) Spreading quality control: Following the point are checked during spreading I. Table marking. II. Ends III. Tension IV. Leaning V. Narrow Goods VI. Counts VI. Ply height VII. Remnants VIII. Fabric flaws IX. Market placing b) After cutting quality control: After each cutting blocks and bundles are checks on the following Points. I. Miss cut II. Ragged cutting III. Pattern checks IV. Matching Plies V. Notches 26
  27. 27. 2.2.10 Sorting/Bundling: The sorter sorts the patterns according to size and design and makes bundles of them. This step requires much precision because making bundles of mismatched patterns can create severe problems. On each bundle there are specifications of the style size and the marker too is attached with it. 2.2.11 Sewing/Assembling: The sorted bundles of fabrics are now ready to be stitched. Large garment manufacturers have their own sewing units other use to give the fabrics on contract to other contractors. Stitching in-house is preferable because one can maintain quality control during the processing. On the other hand if contractors are hired keeping eye on quality is difficult unless the contactor is one who precisely controls the process. There are what is called sewing stations for sewing different parts of the cut pieces. In this workplace, there are many operators who perform a single operation. One operator may make only straight seams, while another may make sleeve insets. Yet another two operators can sew the waist seams, and make buttonholes. Various industrial sewing machines too have different types of stitches that they can make. These machines also have different configuration of the frame. Some machines work sequentially and feed their finished step directly into the next machine, while the gang machines have multiple machines performing the same operation supervised by a single operator. All these factors decide what parts of a garment can be sewn at that station. Finally, the sewn parts of the garment, such as sleeves or pant legs, are assembled together to give the final form to the clothing. 27
  28. 28. 2.2.12 Inspection: Open seams, wrong stitching techniques, non- matching threads, and missing stitches, improper creasing of the garment, erroneous thread tension and raw edges are some of the sewing defects which can affect the garment quality adversely. During processing the quality control section needs to check each prepared article against these defects. 2.2.13 Pressing/ Finishing: The next operations are those of finishing and/or decorating. Molding may be done to change the finished surface of the garment by applying pressure, heat, moisture, or certain other combination. Pressing, pleating and creasing are the basic molding processes. Creasing is mostly done before other finishing processes like that of stitching a cuff. Creasing is also done before decorating the garment with something like a pocket, appliqués, embroidered emblems etc. Vertical and form presses is automated machines. Perform simple pressing operations, such as touching up wrinkles in knit shirts, around embroidery and snaps, and at difficult-to-reach places on garments. 2.2.14 Final Inspection: For the textile and apparel industry, product quality is calculated in terms of quality and standard of fibers, yarns, fabric construction, color fastness, designs and the final finished garments. Quality control in terms of garment manufacturing, pre-sales and posts sales service, delivery, pricing, etc are essential for any garment manufacturer, trader or exporter. Certain quality related problems, often seen in garment manufacturing like sewing, color, sizing, or garment defects should never be over looked. 28
  29. 29. Reject Issue: After being done above process there has large number of product (garments) are rejected cause of bellow defect found in garments body. Sewing defects Open seams, wrong stitching techniques, non- matching threads, missing stitches, improper creasing of the garment, erroneous thread tension and raw edges are some of the sewing defects which can affect the garment quality adversely. Color defects: Variation of color between the sample and the final garment, wrong color combinations and mismatching dyes should always be avoided. Sizing defects: Wrong gradation of sizes, difference in measurement of various parts of a garment like sleeves of XL size for body of L size garment can deteriorate the garments beyond repair. Garment defects: Broken or defective buttons, snaps, stitches, different shades within the same garment, dropped stitches, exposed notches and raw edges, fabric defects, holes, faulty zippers, loose or hanging sewing threads, misaligned buttons and holes, missing buttons, needle cuts or chews, pulled or loose yarn, stains, unfinished buttonhole, short zippers, inappropriate trimmings etc. all can lead to the end of a brand name even before its establishment. Packing: The finished garments are finally sorted on the basis of design and size and packed to send for distribution to the retail outlets. 29
  30. 30. 2.3 Reporting& Co-ordinating Sector: In this sector all the production related report have to coordinate with some formatted Report. Mentioned below with reporting. 2.3.1 Cutting Report: In a production department of garments the initial stage is cutting the fabric for prepare a garments so first of all have to prepare the cutting report. A daily cutting report as follows. Cutting Report of Next Collections Ltd. Date: 30.03.13 Cutting Input Style Color O/qty 172 GAP 198 BLACK 172 GAP 198 STAINLESS 173 GAP 646484 GAP 198 WINE 175 GAP 642856 YELLOW 175 GAP 646484 GAP 329/S TIGRIS 3180 176 GAP 329/H TIGRIS 176 GAP 329/R 177 GAP 178 Total 1680 9222 1400 13682 603 7182 6500 54080 BLACK 176 day BLACK 174 Total 1335 Buyer Input Balance 10622 Line day 1400 605 35000 10664 700 6121 1910 600 900 600 900 0 2672 21630 15255 6375 753 2500 1990 510 TIGRIS 5412 40035 1750 37308 2727 646484 BLACK 116900 3430 110501 628 48654 5095 GAP 980 PINK 1800 2400 900 1500 900 179 GAP 981 RED 2160 11638 2160 9478 2160 181 GAP 634957 BRIGHT 43872 21957 11255 181 GAP 634957 FUCHSIA 29132 949 26677 3402 182 GAP 634957 BRIGHT 1500 11150 183 GAP 198 BLACK 1400 8374 183 GAP 198 WINE 184 TCP 650782 BLACK 1300 6167 184 TCP 650782 BLACK 10 3011 Total: 2125 44362 588 1450 30079 11224 12630 2850 2633 15468 4867 833 1300 3011 0 319415 15038 273031 46384 Table 2.1: Daily Cutting Report of Next Collections Ltd. of Ha-Meem Group. 30
  31. 31. In the above table represent the cutting information of Next Collections Ltd. Ha-Meem Group. In this table line means the line number of the factory, buyer means who has given the order to this factory. Style means the code number of specific products. Color represent the fabric color and there have the information about how many pieces have been cutting in a day and also have the order quantity, balance amount of cutting products. 2.3.2 Wash Report: In a production department of garments the initial stage is cutting the fabric for prepare a garments then after sewing the garments send to wash for washing color changing shading etc. A daily wash report as follows. Wash Report of Next Collections Ltd. BUYER STYLE COLOR GAP 556325 MID.W DAILY SEND WASH 2032 GAP 634957 FUCHSIN 1931 23388 1320 GAP 634957 BRIGHT 2072 27915 GAP 636198 BLACK 1344 GAP 634981 GREY GAP 642856 GAP Date: 30.03.13 TOTAL SEND WASH 377796 DAILY RCV WASH 3140 TOTAL REV WASH 360792 WASH BALANCE WASH FACTORY 17004 EXPRESS 21356 2032 EXPRESS 1120 25693 2222 EXPRESS 5994 320 3673 2321 EXPRESS 1135 7057 26 559 6498 EXPRESS DK WASH 551 581 12 569 EXPRESS 545329 MID.W 1640 50702 2457 45934 4768 CREATIVE GAP 646484 BLACK 3665 101033 3555 91396 9637 CREATIVE GAP 633926 DK DENIM 25718 40 25108 610 CREATIVE GAP 634972 MED.W 20025 3573 12636 7389 CREATIVE GAP 634968 DK WASH 20115 2630 15019 5096 CREATIVE GAP 634969 LIGHT.W 16760 1160 8534 8226 CREATIVE GAP 634960 DARK 28639 2320 21023 7616 CREATIVE 705723 21661 631735 73988 TOTAL: 14370 Table 2.2: Daily Wash Report of Next Collections Ltd. of Ha-Meem Group. 31
  32. 32. In the above table represent the wash information of unit – 1 NCL Ha-Meem Group. In this table line means the line number of the factory, buyer means who has given the order to this factory. Style means the code number of specific products. Color represent the fabric color and there have the information about how many pieces have been send to wash in a day and also have the balance amount in wash section in a wash factory. Express, Creative-1, Creative-2 are the wash factory name. 32
  33. 33. 2.4 Costing of Garments & Cost Sheet: Cost Sheet of a Single Product Product type: Long Pant Materials Item # Item Code Item Code Item Code Item # Item Code Item Code Item Code Item Code Item Code Fabric Fabric # 1 Fabric # 2 Fabric # 3 Nations Zipper Buttons Trim Thread Label/Tag Qty. .5 .1 1 Qty. 1 5 .6 .33 1 Cost/Yds. $6 $8 $4 Cost/Pcs. $ 1.5 $ .20 $ 1.20 $4 $ .30 Total Material Cost: Total Cost $3 $ .80 $4 Total Cost $ 1.5 $1 $ .72 $ 1.32 $ .30 $ 12.64 Detailed Operations Machine Serge Single Needle Single Needle Single Needle Blind Hem Cover Stitch Single Needle Single Needle Hand Operation Serge Center back edges Sew Front to Back Sew Zipper to back Finish Zipper to seam Press Zipper & Side Seam Hem bottom Hem top edge Attaches Strap Sew Button Hole Sew button Press Garments Trim Inspect Ship Thread Color Black Black Black Black Black Black Black Black Black Total Minutes Cost per min Total Sew cost Cut cost Total Labor Total Cost of Garments In Tk. Total Min 1 .5 2 4 6 .2 1.5 1 .75 2 .5 1 1.5 21.95 $ .1 $ 2.20 $ 1.5 $ 3.70 $ 16.34 1300 $ Table 2.3: Cost Sheet of a single product 33
  34. 34. In the above specific product cost sheet Material section refers to the direct material cost or row material cost of a pant and Operation section refers to the Labor cost and maintenance cost. Basically this cost sheet is being done by the merchandiser of this company. Unit Product Cost Analysis: Unit Product Cost Analysis Material Cost Labor Cost 23% 77% Figure 2.1: Unit Product Cost Analysis of Next Collections of year 2012 The above pie chart shows percentage of expenses. In which sector need how much money to prepare a finished product. 34
  35. 35. Cost Sheet of Next Collections Ltd. for the Year Ending 31.12.2012: Cost Sheet for the Year Ending 31.12.2012 Particulars Amount Opening Stock of Raw Materials $47,50,00,000 Add: Amount $20,15,50,000 Direct materials $67,65,550000 Less: Closing stock of raw materials $27,55,75,000 (Value of raw materials Consumed) $50,09,75,000 Add: $36,55,07,500 $76,64,82,500 Direct labor Prime Cost Add: Manufacturing overhead: Indirect material $1,57,00,500 Indirect Labor $15,48,43,200 Other factory overheads $3,12,45,700 $20,17,89,400 $7,50,74,300 Add: Opening work in process Less: Closing work in process $18,96,33,100 (Cost or goods manufactured ) $95,61,15,600 Opening Stock of finished goods $7,80,00,000 60000 units @ 1300. $103,41,15,600 $27,68,63,700 $8,72,30,600 Add: Less: Closing stock of finished goods $16,25,00,000 125000 unit @ 1300 $87,16,15,600 (Cost of goods sold) Profit $9,75,53,500 Seles $96,91,69,100 Table 2.4: Cost Sheet of a year 35
  36. 36. 2.5 Production Report and Analysis: Last 3 months production analysis of Next Collections Ltd. of Ha-Meem Group. Source: Next Collections Ltd. Beron, Ashulia, Dhaka. Fabruary-2013 March-2013 April-2013 571014 803281 602371 Production (Piece) Table 2.5: Three Months Production report of Next Collections Ltd. during my internee. Quantity in pcs Last three month production analysis 803281 1000000 800000 602371 571014 600000 400000 200000 0 Fabruary-2013 Mar-13 Apr-13 Month Figure 2.2: Three Months production analysis of Next Collections Ltd. of Ha-Meem Group. This graph represents the Last 3 months production analysis of Next Collections Ltd. We see that production increase in 1st month but another month is being decrease. 36
  37. 37. Yearly production Analysis: Production Quantity Yearly Production Analysis 600,000 500,000 400,000 300,000 200,000 Unit - 1 100,000 Unit - 2 - Total Month of 2012 Figure 2.3: Yearly Production analysis of Next Collections of year 2012 The figure represents the production growth from the starting point to end of the year. In this figure the company performance is gradually high from January to December. 37
  38. 38. Yearly Production Report: Production Report of Next Collection Ltd. 2012-2013 Production Report Month Unit-1 Unit-2 NCL Total January 18,380 18,380 February 63,940 63,940 March 79,413 79,413 April 149,308 149,308 May 151,160 151,160 June 97,165 97,165 July 198,664 198,664 August 100,648 100,648 September 238,895 238,895 October 274,591 274,591 November 288,690 19,075 307,765 December 346,909 215,338 562,747 2,007,754 234,913 Remarks 2,242,667 Total= Table 2.6: Yearly Production Report Unit- 1&2 of Next Collections Ltd. of Ha-Meem Group. 38
  39. 39. 2.6 Major Findings In Bangladesh most of the garment factories use different tools for quality management but not in organized way. When needs they use these tools haphazardly? In Bangladesh most of the garments factories use 4-point system for inspecting fabrics of garments. Most of the buyers are importing garments from Bangladesh with AQL (acceptable quality level) 2.5. Most of the garments manufacturers are doing inspection during the manufacturing process of garments. Other tests such as shrinkage tests, color fastness tests, azo free tests are done according to the buyers’ requirement. 39
  40. 40. 2.7SWOT Analysis of Ha-Meem Group: Next Collections Ltd. 2.7.1 Strengths:  Stander machinery is used for better quality and all of those machineries being imported from the foreign country. That does ensure the performance.  Well decorated and open space facilities that keep a worker easy to do his/her job with comfortably.  All Floor have available adjust fan that keeps the environment cool in hot day and all time electricity supply.  A large number of Machinery those keep the organization fit and huge number of experienced workers to make quality products.  Well environment inside the factory that workers friendly. 2.7.2 Weaknesses:  It’s fully depending on electricity without electricity the organizations have to set idle with a vast number of employ & workers.  Depend on buyer acceptance of products if any simple defects are found in a body then all the body will be rejected.  Limited internet technology is used for which the organization is unknown to many countries. 40
  41. 41. 2.7.3 Opportunities:  To go first position in Bangladesh at RMG sector as still they are in a second position.  Regulatory environment favoring RMG in Bangladesh and it has a better future.  Online deal with foreign buyers that can maintain the deal by having native country and reduce the time wastage.  Chance to use more update machineries for getting the better quality & save time.  There may have huge profit from this sector as they are an export oriented organization & to western. 2.7.4 Threats:  Workers have the tendency to Agitation in any time for increasing salary and stop there work by demanding their more facility.  Number of potential competitors in those areas increasing day by day it’s a great risk for the organization.  I observed that most of them employee are not cooperative. Everyone wants to take demand from others.  It has no surety to get order from buyer it’s a risk for the organization. 41
  42. 42. Chapter THREE ……………………………………........ CONCLUSIONS AND RECOMMENDATIONS 42
  43. 43. 3.1 Conclusion: In conclusion, Ha-Meem Group: Next Collections Ltd. is one of the most potential garments in the RMG sector. The Ready-Made Garments (RMG) industry occupies a unique position in the Bangladesh economy. It is the largest exporting industry in Bangladesh, which experienced phenomenal growth during the last 25 years. By taking advantage of an insulated market under the provision of Multi Fiber Agreement (MFA), it attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. The industry plays a key role in employment generation and in the provision of income to the poor. The government and the RMG sector would have to jointly work together to maintain competitiveness in the global RMG market. Bangladesh can look forward to advancing its vastnesses the global RMG market. It has a large portfolio with huge assets to meet up its any types of risk and management of these garments is equipped with the expert employers and managers in all level of management with a vast number of workers. So it is not an easy job to find out the drawbacks of Ha-Meem Group: Next Collections Ltd. We would rather feel like producing our own option about the ongoing practices in Next Collections Ltd. The garments have achieved sustainable growth in export in 2012 and the performance of the garments was satisfactory. Major items of exports were garments, jute products, textile, and lather etc. items of import included mainly industrial raw materials, garments accessories, capital machinery and other essential commodities. 43
  44. 44. 3.2 Recommendation I had the practical exposure in Ha-Meem Group: Next Collections Ltd. For just three months, with my little experience in this organizations is comparison with vast and complex system, it is very difficult for me to recommend. I had observed some shortcomings regarding operational and other aspects of their production system. On the basis of observation I would like to recommend the following recommendations-.  I recommend that the factory should improve its web page as they are an exporting company. There have a very few information in their web page and those information is very poor.  Again Next Collections of Ha-Meem Group is situated in countryside it should come forward as if foreign buyer can deal easily with them.  Ha-Meem Group should enrich by new technology to make a good competition among the RMG factory.’  As the numbers of potential competitor are increasing day by day so it should take a strong step to keep retain in the competition market. Ha-Meem Group: Next Collections Ltd. should try to arrange more training programs for their official’s quality training will help the officials to enrich them with more recent knowledge of International Trade Financing 44
  45. 45. Reference: Ha-Meem Group., (2011), “Annual report 2012”, Ha-Meem Group, Beron, Ashulia, Shaver, Dhaka. Jawahar Lal., “Cost Accounting”, Third Edition, Professor of Delhi School of Economics, University of Delhi. Next Collections Ltd., “NCL Profile & Report file”, viewed on 01 April, 2012, Next Collections Ltd. Next Collections Ltd., “Special Features of the Garments Factory”, viewed on 01 April, 2012. Weygandt (University of Wisconsin), Kieso (Northern Illinois University), Kimmel (University of Wisconsin).,“Accounting Principles”. Wikipedia, “Garments history”, viewed on 05, January 2013, <http://www.enwikipedia. org/wiki/rmg.histry.html> 45