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Mapping the process flowchart and documentation in an export house


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Mapping the process flowchart and documentation in an export house

  2. 2.  An exporter manufacturer based in the capital of India with plants based at both Delhi and the outskirts with a turnover of USD 100 million.  Mr. Rajiv Bal(MD) who has an experience of more than 26 years in the apparel trade.  Mr. Rohit Bal, India’s ace haute couture designer, who’s also the Design Director with Orchid Overseas.  One of the few exporters with extensive experience in servicing high fashion wear in South Asia. INTRODUCTION OF THE COMPANY
  3. 3.  Esprit, Germany  Esprit, Australia  Esprit, Newzealand  Esprit USA  Esprit, Canada  Next, UK  George, USA  Paul Smith USA  Paul Smith, UK  Paul Smith, Japan  Monoprix, France  Mexx  MarcAurel  Mark’o’Polo CUSTOMERS
  4. 4. “The vision of the Company is to become a leading manufacturer and exporter of apparel by continuously excelling in quality, service, and customer satisfaction using the best technology, processes and people” VISION
  5. 5.  What role the different department play for completion of the export order?  What are the different documents prepared & used for the export?  How important are these documents? PROJECT OBJECTIVE
  6. 6.  Export in simple words means selling goods abroad or Export refers to outflow of goods and services and inflow of foreign exchange.  Each country has its own rules and regulations regarding the foreign trade.  The documentation procedure depends on the type of goods, process of manufacturing, type of industry and the country to which goods is to be exported. EXPORT ?
  7. 7.  Merchandising department  Fabric store  Trims & accessory store  Industrial engineering department  Cad department  Cutting department  Stitching department  Washing department  Finishing department  Packing department  Documentation department DEPARTMENTS
  8. 8.  A merchandiser is an interface between the buyer and the supplier who has to ensure the quality of production and timely delivery.  Merchandising is a process through which products are planned, developed, executed and presented to the buyers.  It includes directing and overseeing the development of product line from start to finish. MERCHANDISING DEPARMENT
  9. 9.  To look for the appropriate market  To get the samples made according to the buyer’s specification  To estimate and quote the cost of the garment to the buyer and negotiate with them ROLE OF THE DEPARTMENT
  10. 10.  Getting orders  Constant interaction with the buyer for the approval  To get the fabric and trims in-house for bulk production  Co-ordinating with the PPC and production CONT…
  11. 11.  Strong negotiation skills  Attention to detail  Excellent communication  Understanding of garment construction  Computer literacy with MS Office  Strong time management KEY PERSONALATTRIBUTES OF A MERCHANDISER
  12. 12. Presentation from buyer/for buyer Development Sample Range Planning Confirm Costing Confirm Delivery PO Received (i.e. order approved) PROCESS FLOWCHART
  13. 13.  Costing of the garment in bulk is calculated on the basis of quality of material and their requirement in the garment.  Calculation of consumption of fabric and threads to produce one garment  Calculation of cost of fabric per garment  Calculation of cost of trims and threads  Cut-make cost  Poly bag cost  Cost of carton box COSTING
  14. 14.  Sampling department is involved in making samples based on the mutual agreement between the merchant and the buyer. STAGES OF SAMPLING  Tack pack receive  Patterns are developed  Rough body submit  Proto sample  SMS  Pattern rectify  Fit submission  Fit comments  Size set  PP sample  GPT  Dispatch
  15. 15.  The fabric is sourced and brought to the company, they are stored in the factory’s fabric storage area.  It is the responsibility of fabric stores department.  From fabric store the fabric is taken for inspection and then stored in specific locations from where it is issued for cutting. FABRIC STORE
  16. 16.  The Industrial Engineering department (IED) has a role to play in various stages of garment production.  IED is involved in different departments like sampling, cutting, sewing, finishing, etc.  The main functions of the Industrial Engineering Department are:  Target setting  Line balancing  Type of machines & folders to be used in sewing is decided by IED to provide maximum output in the minimum time.  Monitoring production & providing solutions I.E DEPARTMENT
  17. 17.  Stitching department is the most important department of any garment manufacturing unit.  When a new style comes over; the various information like operation breakdown, sewing details, critical operations etc. is put up on the display board.  A sample of the garment is also put up in front of the sewing line for any type of reference. STITCHING DEPARTMENT
  18. 18. File pass from merchandising department to Production department Production Starts Cutting of Fabric Stitching Finishing (includes washing, Spotting, thread cutting, Kaj button, etc) Packing Audit Order Shipping GARMENT MANUFACTURING FLOWCHART
  19. 19.  An export trade transaction distinguishes itself from a domestic trade transaction in more than one way.  One of the most significant variations between the two arises on account of the much more intensive documentation work. EXPORT DOCUMENTATION
  20. 20.  The documents mentioned in the pre & post shipment procedure are discussed below:  Invoice  Packing List  Certificate of Origin  Mate’s Receipt  Shipping Bill/Bill of Entry  Airway Bill  Bill of Lading  Inspection Certificate  Insurance Certificate
  21. 21.  It is prepared by an exporter & sent to the importer for necessary acceptance.  When the buyer is ready to purchase the goods, he will request for an invoice. INVOICE  Commercial Invoice  Consular Invoice  Customs Invoice
  22. 22. Commercial Invoice:  An invoice is a fundamental document o prime importance.  It contains the name of the exporter, importer, and the consignee, and the description of goods. Consular Invoice:  It is document required by certain countries.  This invoice is an important document, which needs to be submitted for certification to the embassy of the country concerned. CONT…
  23. 23.  It shows the details of goods contained in each parcel / shipment.  Considerably more detailed and informative than a standard domestic packing list  It itemizes the material in each individual package and indicates the type of package, such as a box, crate, drum or carton. PACKING LIST
  24. 24.  Importers in several countries require a certificate of origin without which clearance to import is refused.  The certificate of origin states that the goods exported are originally manufactured in the country whose name is mentioned in the certificate. CERTIFICATE OF ORIGIN
  25. 25.  Shipping bill is the main customs document, required by the customs authorities for granting permission for the shipment of goods.  Shipping bill is normally prepared in five copies: SHIPPING BILL  Customs copy.  Drawback copy.  Export promotion copy.  Port trust copy.  Exporter's copy.
  26. 26.  The organization is well organized and systematic.  The merchandiser is the connection or the key player between all the departments.  Every department has their key roles well defined, and the supervisors who keep track of who is working on what in the department.  Cutting head, stitching head, finishing supervisors and other heads are the main people with whom a merchandiser deals.  The cutting process of samples is coordinated with cutting department. FINDINGS
  27. 27.  The finishing process of samples is coordinated with finishing department and there a worker is fixed who works for sampling as well as production department.  The fabric and garment testing are done by SGS, an external testing laboratory.  Embroidery work, pattern making by CAD, research and developmen are done by 133 Unit and external source. CONT…
  28. 28. The merchandiser keeps the business running. They communicate with the buyer, buying house and even with all the departments so as to get the work done as per the deadlines.  It is always an advantage to know about different fabrics used, the kinds of trims used for every buyer still there is fabric testing department and trims departments which have complete details about them.  A Merchandiser should have some knowledge about production whether it could be cutting, stitching, washing or finishing, maintain good relation with them, updated to latest designs and trends in market CONCLUSION
  29. 29.  Even after being an automated export house major work was done manually. The Prosuite system was employed still the receiving and other acknowledgements were taken manually which requires a lot of man power. This can be avoided and a lot of cost can be saved.  Work flow & material flow is not standardized.  Quality checking & alteration making is not satisfactory.  Housekeeping can be improved a lot.  More care should be provided in operator safety. SUGGESTIONS
  30. 30.  Well qualified trained and committed professionals with a shared vision.  Highly qualified Design team, Product development skills and a Design Studio equipped with modern CAD systems.  High degree of adoption of advanced manufacturing technology IT systems. All factories and offices are electronically linked to facilitate all time access to information. KEY STRENGTHS
  31. 31.  Webshttp://orchid (Accessed 18st July, 2012) , “the fascinating world of small people” an overview of the Indian Kidswear Market.  Reference book Paul, Justin & Aserkar, Rajiv, Export Import Management, 2nd Edition, Oxford University Press, 2008, Chapter – 2, pp. 17-29. REFERENCES
  32. 32. THANK YOU