1. Pearl Academy, New Delhi
Fashion Business Management
(2014 – 2018)
PRODUCTION, PLANNING & CONTROL FINAL PROJECT
Submitted to:
MR. GAGGAN BHATIA, MR. MANAS BARUA, MR. NEERAJ KAPOOR & MR.
PIYUSH PANDEY
Submitted by:
KARTIK GANDHI
SAHIL AGARWAL
AKSHAY AGGARWAL
November 29th
, 2016
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Acknowledgement
The success and final outcome of this project required a lot of guidance and
assistance from many people and we are extremely fortunate to have got this all along
the completion of our project work.
At this juncture we feel deeply honoured in expressing our sincere gratitude
to our mentors Mr. Gaggan Bhatia, Mr. Manas Barua, Mr. Neeraj Kapoor & Mr.
Piyush Pandey for their guidance and constant supervision that helped us complete
the project on time. We also owe our profound gratitude to all other faculty members
who helped us at various stages of our project. Lastly, we thank all our family members
and friends who have been constant source of support during the preparation of this
project work.
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Declaration
We hereby declare that the project work entitled Fashion Product Development
submitted to the Pearl Academy is a record of an original work done by Kartik
Gandhi and Sahil Agarwal & Akshay Aggarwal under the guidance of Mr. Gaggan
Bhatia, Mr. Manas Barua, Mr. Neeraj Kapoor & Mr. Piyush Pandey. This project has
been done in partial fulfilment of the requirement for the award of the degree of BA
(Hons).in fashion business management.
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Table of Contents
S.No. Topic Page No.
SECTION 1
1.1 ABOUT THE BRAND & FACTORY 5
1.2 LOCALITY 6
1.3 LAWS & REGULATIONS OF THE STATE 7
1.4 SUPPLY CHAIN MANAGEMENT 8
SECTION 2
2.1 LEAN MANUFACTURING 10
2.2 COMPARISON WITH OTHER EXPORT HOUSES 11
2.3 MACHINERY 12
2.4 RESOURCE MANAGEMENT 14
2.5 STAFF 22
SECTION 3
3 PLANT LAYOUT ON AUTOCAD 26
SECTION 4
4 FINANCIALS 32
SECTION 5
5.1 CSR PRACTICES 37
5.2 REFRENCING 38
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1.1 ABOUT THE BRAND & FACTORY
From small and humble beginnings in 1980, Gini & Jony has come a long way;
it started with a Dream to build an empire in the realm of kids clothing; to build
a Brand that would stand tall and outshine all others. Being “Not Just Big But
the Very Best”.
The LAKHANI BROTHERS - 3 ordinary men who created the Gini & Jony brand.
They were three Ordinary men with an Extraordinary Vision.
A Vision to occupy the pinnacle in kids clothing.
A Vision to offer the best in quality, the latest in fashion trends and the
most comfortable in fit “Quality Never goes out of Fashion”.
The success of Gini & Jony can be attributed to 2 golden words that is a daily
mantra of the Lakhani Brothers “Thinking Big”. This mantra began way back in
1980 and continues even today.
In the early 80’s, the organized kids wear category was almost non-existent.
Gini & Jony was one of the foremost brands in kids wear. That actually helped
build the category of kids wear clothing.
BRAND EXTENSION OF GINI & JONY FOR INFANTS (0-2 Years)
Gini & Jony’s prominence in the market has grown twofold and with that a
much needed extension in Kid’s wear brings forth the collection for Infants
between the age group of 0-2 years. With the growing need of clothing among
kid’s wear is getting popular, we are introducing 3 categories in them i.e.
Sweaters, Caps & Bedding products. These products would be made out of
100% Cotton and will be manufactured by “Ludhiana Apparels Pvt. Ltd.”
LUDHIANA APPARELS PVT. LTD.
A sweater manufacturing Unit starting in Ludhiana that will be manufacturing
these 3 products in its first year of start-up for Gini & Jony. This manufacturing
unit will make complete garment with In-house Knitting.
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1.2 LOCALITY
(SOURCE: Techno-Pak)
FACTORY ADDRESS:
D-30 Hampton Business Court, Chandigarh Road Ludhiana, Punjab 141012
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1.3 LAWS & REGULATIONS OF THE STATE
1.3.1 INDUSTRY PARTICIPATION
In order to lay down system for organized participation of
industry and trade in the process of suggesting policy measures
for the development of industry and trade State Government
has constituted following Boards/ Council: -
1. Large Industry Development Board, Headed by Hon’ble
Chief Minister.
2. Infrastructure Development Council, Headed by Hon’ble
Chief Minister.
3. Medium Industry Development Board, Headed by
Representative of industry.
4. Small Industry Development Board, Headed by
Representative of industry.
5. Traders Board, Headed by Representative of trade.
6. Small Traders Board, Headed by Representative of trade.
1.3.2 INDUSTRIAL FACILATION
State Government has implemented the Punjab Industrial
Facilitation Act, which aims at expediting the Industrial
Approvals in a time bound manner. Udyog Sahayak in the
Directorate of Industries & Commerce and District Industries
Centre’s in the State have been designated as State Nodal
Agency and District Nodal Agencies respectively under this Act.
1.3.3 ENVIRONMENTAL REFORMS
(i) Reclassification of industries will be done by creating orange
category in addition to red and green categories.
(ii) The classification of industries will be based on nature /
level of pollution irrespective of investment.
(iii) Pollution Control Board will approve more reputed
laboratories in addition to the three private laboratories
already approved, in order to provide more avenues for testing
of samples by the industry.
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1.3.4 DEEMED APPROVALS
Time schedules for various approvals required by an
entrepreneur have been notified under Industrial Facilitation
Act. Notification has also been issued to the effect that in case,
the application for approvals is kept pending by the concerned
Department without assigning any reason and approval is not
granted within the notified time schedule, deemed approval
shall be granted to the applicant by the Nodal Agency.
1.4 SUPPLY CHAIN MANAGEMENT
RAW MATERIAL SOURCING:
YARN SOURCING: The merchandiser sources the yarn from the
specified yarn manufacturer after when lap dips gets approved from
the buyer. Yarn Sourcing of 100% Cotton Combed Compact is done
from Vardhman Polytex Ltd. as it is the nearest yarn sourcing suppler
which can dye 1,257 kg in 1 go ie lead time taken is 15-20 days as its
4 km from the factory setup.
TRIMS SOURCING: The merchandiser sources garment trim from the
specified garment trim manufacturer in advance after when sample
gets approved by the buyer. Garment trim sourcing includes: ML, SL,
&WC, Stitching thread, Carton tape, Polybag, Price ticket, Carton
tape, elastic yarn and wastage yarn. The sourcing for trims garment
5,000 Units is also done from Ludhiana from Ashish Enterprises and
the lead-time taken is 8-10 days as its 12 km from the factory setup.
DISPATCH:
The goods are dispatched to the head office of Gini & Jony (Delhi),
from where it is re-packed according to the respective stores i.e.
within DELHI.
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2.1 LEAN MANUFACTURING
Just in time-continuous flow: manufacturing where work in process smoothly flows
through production with minimal buffers between steps of the manufacturing
process. It eliminates many forms of waste such as inventory waiting time & transport.
It also ensures right quality checkpoints at each stage, proper
space utilisation, everything in its right place and regular audits.
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MACHINERY REQUIRMENT
SECTION MACHINERY TYPE
NUMBER
OF
MACHINERY
UNIT
PRICE
PER M/C
TOTAL
AMOUNT
WINDING
SECTION
Yarn Winder 1 80,000 80000
125,000
D-Knitting Machine 1 45,000 45000
KNITTING
SECTION
Hand Flat 5gg 34 20,000 680000
960000
Hand Flat 7gg 14 20,000 280000
KATCHI SECTION Katchi Machine 1 70,000 70000 70,000
WASHING
DEPARTMENT
Automatic Washer
Machine 50Kg
Capacity
1 350,000 350,000
650,000Hydro 50Kg
Capacity
1 125,000 125,000
Tumble Dry 50 Kg
Capacity
1 175,000 175,000
IRON
DEPARTMENT
Industrial Steam
Iron
2 25,000 50000 50,000
SEWING
DEPARTMENT
SNLS Machine 1 23,000 23000
893000
4 Thread Overlock
Machine
1 70,000 70000
Button Hole
Machine
1 450,000 450000
Button Stich
Machine
1 350,000 350000
LINKING
DEPARTMENT
Linking 5gg (LPM) 2 60,000 120000
230000
Linking 7gg (LPM) 2 55,000 110000
THREAD
CUTTING
DEPARTMENT
Light Box 1 10,000 10,000 10,000
SAMPLING
ROOM
SNLS Machine 1 23,000 23,000
1,083,000
4 Thread Overlock
Machine
1 70,000 70,000
Button Hole
Machine
1 450,000 450,000
Button Stich
Machine
1 350,000 350,000
Linking 5gg (LPM) 1 60,000 60,000
Linking 7gg (LPM) 1 55,000 55,000
Hand Flat 5gg 1 20,000 20,000
Hand Flat 7gg 1 20,000 20,000
Steam Iron 1 25,000 25,000
Light Box 1 10,000 10,000
TOTAL 4,071,000
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EQUIPMENT REQUIRMENT
SECTION EQUIPMENT TYPE
NUMBER OF
EQUIPMENT
UNIT
PRICE
PER
EQUIPMENT
TOTAL
AMOUNT
CUTTING SECTION
Scissors 3 Sets 4,500 13,500
13,560
Chalks 3 Sets 20 60
MENDING
SECTION
Needles 2 Sets 700 1,400 1,400
FINISHING
DEPARTMENT
Thread Cutters 6 Sets 120 720
2160Takka Turpai Needles 6 Sets 100 600
Spot Guns 6 Sets 140 840
OTHER
EQUIPMENTS
Measuring Tapes 3 Sets 200 600
1500Bobbin 3 Sets 200 600
Boobin Case 3 Sets 100 300
SAFETY
EQUIPMENTS
Fire extinguishers 12 12,000 144,000
162,000
first aid boxes 12 1,500 18,000
TOTAL 180,620
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2.3 RESOURCE PLANNING
A. PRODUCT DEVELOPMENT
Product development is a process of designing a new product line and considering
the production feasibility of the product, which is new in the market in order to ensure
the growth and survival of the organization. Product development is a complex process,
which requires a lot of thought process as well as excellent practical skills. The process
of product development begins with idea generation and ends with product pricing.
Once Design forecasters give in their inputs than PD team decides that what designs are
to be made along with the product range as per the season. Once the final collection is
made than final lead-time is set by the buyer and make their collections and orders from
the sample which are prepared than finally goes for sampling approvals at each stage.
B. MERCHANDISING
Merchandising team works on the season, which is set according to the buyer’s
calendar. Merchant is a mediator b/w the buyer and the exporter who is responsible
for right from the getting the order, approving the design, order the yarns, keeping a
proper check on knitting status and cutting and sewing production till it dispatches
from the export house. Apart from this work, he also plans time & action plan that in
how many days that goods have been produced and what is the set deadline date for
it and further ensure good quality and time delivery at sight. Once he gets the tech
pack it starts with the various sampling stages:
Proto Sample
Fit Sample
Size Set Sample
Sales Sample
Pre-Production Sample
Top of Production Sample
Shipment Sales
C. RAW MATERIAL SOURCING
YARN SOURCING: The merchandiser sources the yarn from the specified yarn
manufacturer after when lap dips gets approved from the buyer. Yarn Sourcing of
100% Cotton Combed Compact is done from Vardhman Polytex Ltd. as it is the
16. P a g e | 16
nearest yarn sourcing suppler which can dye 1,257 kg in 1 go ie lead time taken is 15-
20 days as its 4 km from the factory setup.
TRIMS SOURCING: The merchandiser sources garment trim from the specified
garment trim manufacturer in advance after when sample gets approved by the
buyer. Garment trim sourcing includes: ML, SL, &WC, Stitching thread, Carton tape,
Polybag, Price ticket, Carton tape, elastic yarn and wastage yarn. The sourcing for
trims garment 5,000 Units is also done from Ludhiana from Ashish Enterprises and the
lead-time taken is 8-10 days as its 12 km from the factory setup.
D. YARN STORAGE:
We have to purchase yarn as per colour wise consumption from yarn mill/supplier.
We have to be careful regarding yarn count, approved shade and colour wise quantity
(including wastage) at the time of purchasing yarn. We have to store the yarn
systematically in yarn store.
(Source: Techno-Pak)
E. WINDING SECTION
In this stage we have to wind the yarn in winding section by coning machine before
knitting. Sometimes yarn may be required to be twisted.
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(Source: Techno-Pak)
F. YARN DISTRIBUTION
After winding process, the yarn goes to distribution section and distributors distribute
the yarn to the knitting floor for knitting sweaters.
G. KNITTING SECTION
Knitting: In knitting section knitting operators knit the different parts of the sweater
i.e. front part, back part, sleeve etc. But plackets are made by auto placket machine.
(Source: Techno-Pak)
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H. KNITTING INSPECTION
QC team inspects different knitted parts of the sweater in this section and sends to
linking section for linking.
(Source: Techno-Pak)
I. LINKING
In this section linking operator’s link/join different parts of the garment by linking
machine
(Source: Techno-Pak)
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J. LINKING INSPECTION
In this section QC team inspect the linked body after getting the garments linked by
linking operators.
(Source: Techno-Pak)
K. TAKA TURPAI SECTION
Linked sweaters are trimmed in this section.
L. THREAD CUTTING
In this section sweaters are mended by mending operators.
M.LIGHT CHECK
In this section light checking process is done thoroughly and carefully to detect/find
any defect. If there is any defect found and if the defect is possible to overcome, then the
garment is sent to the respective person for correction.
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(Source: Techno-Pak)
N. WASHING SECTION
In this section washing and drying process are done. Washing machine, hydro
extractor and drying machine are used in this section.
(Source: Techno-Pak)
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O. IRONING SECTION
In this section each garment is normally ironed/ pressed to remove unwanted
crease and to improve the smoothness, so that the garments looks nice to the
customer.
(Source: Techno-Pak)
P. IRONING INSPECTION
QC team inspects the sweaters in this section to ensure iron quality.
Q. SEWING SECTION
Labels are attached in the garments by sewing machine in this section.
R. FINISHING SECTION
QC team checks final quality in this section to detect any defective garments before
packing.
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(Source: Techno-Pak)
S. PACKING SECTION
After final check/inspection, the garments are packed in poly or/and blister and finally
in carton attaching hang tag, price tag etc. in this stage as per buyers’ packing instruction
for inspection by buyer’s representatives/inspectors.
(Source: Techno-Pak)
T. DISPATCH
The goods are dispatched to the head office of Gini & Jony (Delhi), from where it is
re-packed according to the respective stores i.e. within DELHI.
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STAFF
WAGES OF OPERATORS HAS BEEN TAKEN ON CONTRACT BASIS AND SENIOR STAFF & LOWER
MANG. HAVE BEEN TAKEN ON FIXED MONTHLY BASIS
DEPARTMENTS POSITION
SALARY
CONDITION
NUMBERS
PER
HEAD
TOTAL
ANNUAL
EXPENDITURE
YARN STORAGE
Store in-charge
Fixed Pay
1 11,500
2,10,000
Helper 1 6,000
WINDING SECTION
Yarn Winder
Controller
Fixed Pay
1 11,000
3,00,000
D-Knitter Controller 1 8,000
Helper 1 6,000
KNITTING SECTION
Contractor
Contract
1 19,275
20,00,172
Production Operator 48 4,016
Inspection
Fixed Pay
2 9,000
Knitting Master 1 30,000
Helper 8 6,000
MENDING SECTION
Contractor
Contract
1 1,600
76,400Operator 1 16,000
Helper Fixed Pay 1 6,000
KATCHI SECTION
Contractor Contract 1 900
45,600Operator Contract 1 9,000
Helper Fixed Pay 1 6,000
WASHING SECTION
Contractor
Contract
1 2,000
232,004
Washing Operator 1 6,667
Hydro Operator 1 6,667
Tumble Dry Operator 1 6,667
Helper Fixed Pay 2 6,000
IRON SECTION
Contractor
Contract
1 2,000
3,40,000
Operator 2 10,000
Helper
Fixed Pay
2 6,000
Inspection 1 9,000
CUTTING SECTION
Contractor
Contract
1 1,400
1,33,600
Operator 1 14,000
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FINANCIALS
SUMMARY SHEET
Name of Company Ludhiana Apparels Pvt. Ltd.
Project Title Infants Knitted Garment Manufacturers
Product Description Sweaters, Caps & Bedding
Name of Competitors Mom & Me, Mothercare, UCB Kids
USP Timely Delivery
Factory space 5380 Square Feet
Number of Machines ( Sewing) 8
Production capacity per day. 205
Sales 6,56,85,600
Net Profit 3,24,90,462
Initial Investment 4,53,07,048
Total Annual Capacity (In Units) 60000 60000
CAPACITY UTILIZATION (in %) 80% 80%
ANNUAL PRODUCTION UNITS 48,000 48000
1) Estimate Annual production capacity and actual production 48000
2) Find the Annual Sales in Value & Units 6,56,85,600
Key Product Categories/Business
Verticals Weights Price
Weighted
Price
Sweaters 33% 1300 429
Caps 33% 915 301.95
Bedding 34% 1875 637.5
ASP= SUM of (W*P) 1368.45
34. P a g e | 34
DETAILS OF FIXED ASSETS
PARTICULARS
VALUE (in
Rs.)
COMMENTS
Factory Machinery 40,71,000 Number of Machinery: 134
Factory Land & Building (Lump Sum) 1,73,00,000
Area of Land: 5380 Sq. Feet,
Area of Building: 3500 Sq.
Feet
Factory Vehicles 8,00,000
Factory Other Assets 8,30,620
Factory Furniture & Fixtures 99,280
Office Machinery 0
Office Land & Building 0
Office Vehicles 0
Office Other Assets 20,000
Office Furniture & Fixtures 5,09,900
TOTAL 2,36,30,800
INITIAL INVESTMEST TOTAL
Total Initial Investment in Fixed Assets 2,36,30,800
Total initial investment in Net Working Capital (30% of First year sales) 1,97,05,680
Pre-operative expenses ( 3% of First year sales) 19,70,568
Total Capital Requirement 4,53,07,048
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COST OF GOODS SOLD/ COST OF SALES
PARTICULARS Year 1
Direct Material Consumed 43,00,650
Total Direct Labor 61,30,368
Total Direct Expenses 40,68,600
PRIME COST 1,44,99,618
DEPRECIATION on Factory Assets 7,83,640
Factory Indirect Labor 16,56,000
Rent 0
Other FACTORY OVERHEADS 5,71,200
COST OF GOODS SOLD 1,75,10,458
Office Indirect Labor 45,78,000
DEPRECIATION ON OFFICE & ADMINISTRATION ASSETS 52,990
Other Office Overheads 7,24,800
SELLING & DISTRIBUTION Indirect Labor 13,13,712
Other Selling and Distribution Overheads 2,40,000
COST OF SALES 2,44,19,960
PROJECTED INCOME STATEMENTS Year 1
Sales 6,56,85,600
Less: Cost of Goods Sold : 1,75,10,458
Gross Profit 4,81,75,142
Less:
Office and Administration Overheads 7,24,800
Selling and Distribution Overheads 2,40,000
EBIT 4,72,10,342
Less: Interest on term loan 0
Less: Other non operating expenses (1/5th Of Preliminary Expenses) 3,94,114
Add: other Non operating incomes 0
EBT 4,68,16,228
Less: Income Tax @30.60% on EBT 1,43,25,766
EAT (NET PROFIT) 3,24,90,462CFAT CALCULATION
EBIT 4,72,10,342
Less: Taxes 1,43,25,766
Add: depreciation 8,36,630
Add: other non cash expenses (pre operative expenses) 0
CFAT 3,37,21,206
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Break Even Point (In Units)
Fixed Costs 70,68,000
CM per unit (S.P -
Prime Cost)
1168.45
B.E.P (in Units) 6,049
Break Even Point (In Value)
Fixed Costs 70,68,000
CM (In %) 17.12%
B.E.P (In Value) 12,10,042
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5.1 CSR PRACTISES
1) Worker Welfare:
Education: Sponsoring for children of employees, Adoption of local schools &
Distribution of uniforms, books, shoes etc. at various schools, No to child
labor & financial help to widow
2) Women empowerment:
Regular health checkups, regular on job training & jobs for physically
challenged women.
3) Health Safety:
First Aid Facilities, Free consultation to employees & free medicines.
4) Skill Development:
Provide training Programmes, Helps in increasing the core expertise,
knowledge & skill.
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5.2 REFERENCES
About.com. (2016). About.com. [online] Available at: http://www.about.com
[Accessed 1 May 2016].
Fibres2fabrics.blogspot.in. (2011). ARTICLES ON TEXTILE FIBER, YARN, FABRIC,
DYEING AND GARMENTS PRODUCTION: THE SPREADING PROCESS & SPREADING
MODES OF FABRIC IN A GARMENTS FACTORY. [Online] Available at:
http://fibres2fabrics.blogspot.in/2011/05/spreading-process-spreading-modes-
of.html [Accessed 1 May 2016].
Blinternational.net. (2016). B.L. International | ISO 9001-2000 Certified Company.
[Online] Available at: http://blinternational.net/company-overview.php [Accessed 1
May 2016].
Textilelearner.blogspot.in. (2016). Fabric Spreading | Types of Fabric Spreading |
Requirements of Spreading Process - Textile Learner. [Online] Available at:
http://textilelearner.blogspot.in/2012/07/fabric-spreading-types-of-fabric.html
[Accessed 1 May 2016].
Merchandiser, A. (2015). Flow Chart of Garments Manufacturing Process. [Online]
Garments Merchandising. Available at:
http://www.garmentsmerchandising.com/flow-chart-of-garments-manufacturing-
process/ [Accessed 1 May 2016].
