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1. DISSERTATION REPORT ON
FUNCTIONS AND IMPORTANCE OF MERCHANDISING
IN APPAREL INDUSTRY
Prepared for:
Dr. Masud Al Noor
Head of the department (AMMT)
SMUCT
Prepared By:
Md.Belal Uddin
ID: 101011338
Group: D
Semester: 8th
March, 31, 2014.
Shanto-Mariam University of Creative Technology

2. March, 31, 2014.
Dr. Masud Al Noor
Head of the Department (AMMT)
Shanto-Mariam University of Creative Technology
Uttara, Dhaka.
Subject: DISSERTATION REPORT ON FUNCTIONS AND IMPORTANCE OF
MERCHANDISING IN APPAREL INDUSTRY.
Dear Sir,
I would like to inform you that, I am going to submit a dissertation report on functions and
importance of merchandising in apparel industry which is given by you. If you need any
clarification than please let me know.
I therefore, pray and hope that you would be kind enough to grant my prayer and oblige
thereby.
Sincerely,
…………………
Md.Belal Uddin
ID: 101011338
Group: D
Semester: 8th

3. TABLE OF CONTENTS
Topic Name Page Number
1. INTRODUCTION:……………………………………………………………… 01
1.1 Objectives…………………………………………………………………………….. 02
1.2 Methodology…………………………………………………………………………. 02
1.3 Scope………………………………………………………………………………….. 03
1.4 Limitation……………………………………………………………………………… 03
2. PROGRESS OF BANGLADESH RMG SECTOR:………………………….. 03
3. HISTORICAL PERSPECTIVE OF MERCHANDISING:………………….. 07
4. DETAILS DESCRIPTION ABOUT MERCHANDISING:…………………. 08
4.1. Definition of merchandising………………………………………………………… 08
4.2. Concept & Idea of Merchandising………………………………………………….. 09
4.3 The Modern Merchandising…………………………………………………………..………………………. 09
4.4 Type & Function of Merchandising…………………………………………………. 10
5. IMPLEMENTATION OF MERCHANDISING……………………………… 12
5.1. Importance of Merchandising……………………………………………………….. 12
5.2. Build up strong network with buying house, supplier of fabrics and accessories.…. 13
6. RESPONSIBILITY OF A MERCHANDISER………………………….. 13
6.1. Some Important work of a merchandiser…………………….……….…………… 14
6.2. Daily activities of a merchandiser............................................................................. 15
6.3. Weekly activities of merchandiser……………………………………….……….. 15
6.4. Monthly activities of a merchandiser …………………………………….………. 16
6.5. Yearly activities of a merchandiser ………………………………………………. 16
6.6. After confirming price a merchandiser works…………………………………….. 16
6.7. Some Important Issue for a merchandiser as well
as factory before starting work with a new buyer………………….……………… 17
6.8. The Confirming Order after Merchandiser Do Some Work……………………….. 18
6.9. Follow Up all Sections …………………………………………………………… 18
7. MERCHANDISING PROCESS FLOW……………………………………... 19

4. 7.1. Garment Merchandising process flow…………………………………………….. 19
7.2. Negotiation (Price) Process and Ending of Negotiation…………………………... 20
7.3. Negotiation (Price) Process and Ending of Negotiation as following……………... 21
7.4. Process For Implementing Merchandise Plans…………………………………….. 21
7.5. Receipt of Order…………………………………………………………………… 23
7.6. Time & Action plan (T&A) Preparations………………………………………….. 23
7.7. According to T&A we will do our work according to below time schedule……….. 24
7.8. Fabric Ordering…………………………………………………………………….. 28
7.9. Payment Term……………………………………………………………………… 28
7.10. Pilot Yardage…………………………………………………………………….. 29
7.11. Inspection………………………………………………………………………… 29
7.12. Trims ordering……………………………………………………………………. 30
7.13. Production Sampling……………………………………………………………… 33
7.14. Merchandising Season…………………………………………………………….. 34
7.15. Types of Merchandising Season………………………………………………….. 34
7.16. Inspection Schedule of Different Buyer…………………………………………... 35
8. SOME IMPORTANT SOURCING AND PRODUCTION DEVELOP
CONTROLLING PROCEDURE…………………………………………….. 38
8.1. Sourcing……………………………………………………….. 38
8.2. Sales & Marketing Interface…………………………………………………… 39
8.3. Product Development………………………………………………………….. 39
8.4. Production Authorization……………………………………………………… 40
8.5. Product Information System…………………………………………………… 41
8.6. Efficiency calculation…………………………………………………………. 41
8.7. Basic knowledge of Work Study…………………………………………… 42
8.8. Fist Used For Daily Production……………………………………………… 43
8.9. Work study is the most accurate method of setting Standard of performance
upon which effective planning and production control relies upon…………………… 44

5. 9. IMPORTANT MARKETING STRATEGY FOR A MERCHANDISER… 45
9.1. Marketing strategy………………………………………………………………. 45
9.2. Target Market……………………………………………………………………. 45
9.3. Market Segmentation…………………………………………………………… 47
9.4. Alternate Marketing……………………………………………………………… 47
9.5. Market Research…………………………………………………………………. 48
10. WORK OF APPAREL MERCHANDISER…………………………………. 48
10.1. Business Development Procedure of merchandiser………………………………. 48
10.2. First E-mail to the Buyer for Business Development……………………………… 49
10.3. Feed -Back From Buyer in Response to First Email…………………………… 50
10.4. Basic qualifications should have the Merchandisers…………………………… 50
10.5. Main function of a Merchandiser to execute an order perfectly on time (schedule) 50
10.6. Factors of industrial buyer……………………………………………………… 50
10.7. Daily correspondences with buyer……………………………………………… 51
10.8. Email to buyer in response to buyers complains………………………………… 51
10.9. Sending Quality Sample to the New Buyer for Better Understanding………... 52
10.10. Sampling Procedure…………………………………………………………… 52
10.11. Approval produces of sales samples…………………………………………… 53
10.12. Sub-Contract Agreement……………………………………………………… 54
10.13. Merchandising Procedure to Execute an Order……………………………….. 55
10.14. Buyer Approval Procedure of Fabrics, Color &Accessories by Supplier……... 57
10.15. Master LC Checking Procedure……………………………………………….. 57
10.16. ML/C Confirmation Procedure………………………………………………… 58
10.17. Different Types of Samples……………………………………………………. 58
10.18. Emails to Supplier for Samples of Yarn, Fabrics and Different Types of
Accessories for Buyer Approval………………………………………………. 59
10.19. Preparation of Data Bank Suppliers for Different Items………………………. 59
10.20. Merchandiser Should Be Known Different Yarn Count………………………. 59
10.21. Merchandiser Should Be Known Different Thread Consumption…………….. 63

6. 10.22. Machine Wise Sewing Thread Consumption/Inch............................................... 65
10.23. Specimen Sewing Thread Consumption............................................................... 65
10.24. Merchandiser Should Be Known Some Important Abbreviation
For Merchandising Dept…………………………………………………………. 66
10.25. CBM Calculation………………………………………………………………… 66
10.26. Price Quotations…………………………………………………………………. 66
10.27. Costing of garments product……………………………………………………. 67
10.28. Costing of Garments (in FOB) Price…………………………………………….. 68
10.29. Cost sheet preparation…………………………………………………………… 69
10.30. Cost Sheet Analysis……………………………………………………………… 69
10.31. Consumption of Shirt, T-shirt, Trouser…………………………………………… 70
10.32. Interning Consumption…………………………………………………………… 75
10.33. Twill Tape Consumption………………………………………………………… 75
10.34. Button Consumption…………………………………………………………….. 75
10.35. Consumption sheet preparation………………………………………………….. 76
10.36. Poly Consumption……………………………………………………………….. 77
10.37. Poly Costing……………………………………………………………………... 77
10.38. Inventory of accessories…………………………………………………………. 78
10.39. Preparation of Packing List after Final Inspection…………………………….. 79
10.40. Shipping Mark…………………………………………………………………. 81
10.41. Some Important Printing & Embroidery……………………………………….. 81
10.42. Embroidery Section …………………………………………………………… 82
10.43. PI Sheet and its Items…………………………………………………………… 82
10.44. Agenda and Minutes Writing Procedure………………………………………… 83
10.45. Steps of Negotiation between Merchandiser & Supplier………………………… 83
10.46. Negotiation Process……………………………………………………………… 83
10.47. Price Negotiation Procedure with Different Suppliers…………………………... 84
10.48. Items Included in P.O…………………………………………………………… 84

7. 10.49. Those items are included in P.O. This are………………………………………. 86
10.50. P/I Collection Procedure from Supplies and Checking of P.I…………………… 86
10.51. PI Sheet and Its Items…………………………………………………………… 86
10.52. PI Request to Yarn Supplier…………………………………………………….. 87
10.53. Daily Production Report from the Supplier & Monitoring…………………….... 89
10.54. Preparation of Shipping Sample and Sending To Buyer………………………… 89
10.55. Investigation to Third Party like SGS, ITS for Final Inspection………………… 89
10.56. Trim Card Preparation…………………………………………………………… 89
10.57. Price Negotiation Meeting………………………………………………………... 89
10.58. Procedure of Receiving for Accessories…………………………………………. 90
10.59. Buyer Wise Purchase Order……………………………………………………… 91
10.60. Production flow of Sales & distribution………………………………………… 93
10.61. Future Business Plan Writing…………………………………………………… 94
11. MERCHANDISER SHOULD BE KNOWN DIFFERENT L/C……….…… 95
11.1. Application Procedure to Bank for Back to Back L/C Opening…………………. 95
11.2. Checking Master L/C Related with Terms and Condition Maintained In Master L/C 96
11.3. Collection of All Relevant Documents From Different Companies And
Organizations Like GSP, CO, etc……………………….…………………… 96
11.4. Preparation of Commercial Invoice……………………………………………… 96
11.5. Master L/C………………………………………………………………………. 97
11.6. Forwarding Agents………………………………………………………………. 97
11.7. Documentation Submission Procedure to the Bank……………………………… 97
11.8. Application Procedure for Cash Intensive from Bank…………………………… 97
11.9. Different Types of Containers……………………………………………………. 98
11.10. Containers size………………………………………………………………….. 99
12. INTRNATIONAL COMMERCIAL TERMS THAT ARE NEEDED A
MERCHANDISER…………………………………………………………….. 99
12.1. EXW - Ex Works (named place)………………………………………………… 99

8. 12.2. FCA - Free Carrier (named place)……………………………………………….. 99
12.3. FAS - Free Alongside Ship (named port of shipment)………………………… 100
12.4. FOB - Freight on Board (named port of shipment)……………………..……. 100
12.5. CNF - Cost & Freight (named port of destination)……………………..……. 100
12.6. CIF-Cost, Insurance & Freight (named port of destination)……………..…... 100
12.7. CPT - Carriage Paid To (named port of destination)………………..
101
12.8. CIP - Carriage & Insurance Paid To (named port of destination)………..….. 101
12.9. DAF - Delivered at Frontier (named place)……………………………………… 101
12.10. DES - Delivered EX Ship (named port of destination)………………………… 102
12.11. DEQ - Delivered EX Quay (named port of destination)……………………….. 102
12.12. DDU - Delivered Duty Unpaid (named place of destination)………………….. 102
12.13. DDP - Delivered Duty Paid (named place of destination)…………………….... 102
13. ORDER MANAGEMENT IN GARMENTS INDUSTRY…………………. 103
13.1. Follow Up‟s & Updates………………………………………………………...... 103
13.2. Approvals……………………………………………………………………….. 105
13.3. Inter Department Co-ordination………………………………………………… 105
14. SOME DOCUMENTATION OF MERCHANDISING………………….
106
14.1. Sourcing Documents……………………………………………………………. 106
14.2. Letter of Credit………………………………………………………………….. 107
14.3. Documentation for Opening L/C………………………………………………… 112
14.4. Bill of Lading…………………………………………………………………… 112
14.5. Insurance Documents……………………………………………………………. 113
14.6. Invoice…………………………………………………………………………… 113
14.7. Certificate of Origin……………………………………………………………… 116
14.8. Order Confirmation Documents………………………………………………….. 117
14.9. Import Documents……………………………………………………………….. 117

9. 14.10. Documentation on Receipt of the Material at the Factory………………………. 117
14.11. Documentation during Production……………………………………………… 117
14.12. Export Documentation………………………………………………………….. 117
14.13. Packing List/ Weight Note……………………………………………………… 118
14.14. Air Way Bill……………………………………………………………………. 118
15. ORDER ACHIVEMENT ANALYSES…………………………………………. 119
15.1. Material Utilization Report……………………………………………………… 119
15.2. Style and factory capability report……………………………………………….. 119
15.3. Product quality report……………………………………………………………. 119
16. CONCLUSION………………………………………………………………… 120
17. RECOMANDATIONS…………………………………………………………. 120
18. BIBLIOGRAPHY………………………………………………………………. 120
19. APPENDIX……………………………………………………………………………121

10. 1
1. INTRODUCTION.
The tremendous success of readymade garment exports from Bangladesh over the
last two decades has surpassed the most optimistic expectations. Today the apparel export
sector is a multi-billion-dollar manufacturing and export industry in the country.
The overall impact of the readymade garment exports is certainly one of the most significant
social and economic developments in contemporary Bangladesh. With over one
and a half million women workers employed in semi -skilled and skilled
jobs producing clothing for exports, the development of the apparel export industry has
had far-reaching implications for the society and economy of Bangladesh
For Bangladesh, the readymade garment export industry has been the proverbial goose that lays the
golden eggs for over fifteen years now. The sector now dominates the modern
economy in export earnings, secondary impact and employment generated. The events in1998
serve to highlight the vulnerability of this industry to both internal and external shocks
on the demand and supply side. Given the dominance of the sector in the overall modern
economy of Bangladesh, this vulnerability should be a matter of some concern tithe policymakers in
Bangladesh. Although in gross terms the sector‟s contributions to the country‟s export earnings is
around 74 percent, in net terms the share would be much less partially because the
backward linkages in textile have been slow to develop. The dependence on
a single sector, no matter how resilient or sturdy that sector is, is a matter of policy concern. We
believe the policymakers in Bangladesh should work to reduce this dependence by
moving quickly to develop the other export industries using the lessons learned from the
success of apparel exports. The industry is one hundred percent export-oriented and therefore
insulated from domestic demand shocks; however, it remains vulnerable to domestic supply
shocks and the smooth functioning of the banking, transportation another forward and
backward linkage sectors of the economy. The Dhaka-Chittagong road remains the main
transportation link connecting the production units, mostly situated in and around Dhaka and the port
in Chittagong, where the raw material and the finished products are shipped in and out. Despite
increased dependence on air transportation, trucks remain the main vehicles for
transporting raw materials and finished products for Bangladesh garment exports.
The RMG sector in Bangladesh, with its low productivity and poor quality will be no match
for the competitive producers. The higher volume is explained by productivity. Factories in
Sri Lanka operate at 80% - 90% of potential capacity whereas in Bangladesh, according to
some experts, productivity is between 35% and 55% of potential capacity with very few
exceptions. For the RMG sector in Bangladesh, productivity alone can make a difference
between life and death. The higher dollar value is explained by the addition of value. The
consumer surplus is drastically greater in the market for high end products. Consequently, the
profit margin is much higher for high end products.

11. 2
 or a overall success in the garments.
 The role of Merchandising in export sector in Bangladesh.
 Finding the problem what actually faced the merchandiser at work.
 Collecting information about merchandising job & their responsibilities.
 To identify the supply chain management direction with in the merchandising
management system.
 To develop relation between quality & merchandising.
 Find out the role of merchandising in RMG sector.
 Describe the dimensions of Apparel product lines, including the merchandising calendar.
 Discuss the relationship of merchandising to sourcing finished goods, materials, and
production.
1.1 Methodology:
At first, we went to different garments company and collect
information from the personnel. In preparing this report, we approached according to
the following procedure:
Primary Sources
For the completion of this report, the primary sources of data are-
 STAELET APPARELS LTD.
 Experts‟ opinion and comments,
 Observations of the officials,
 Face to face conversations with the employees of Garments.
Secondary Sources
 Relevant books, Newspaper, journals etc.
 Websites.
 Office circular and other published papers.
 Manual of different departments.
Data Gathering: Data gathering will be taken place after preparing the structure for in-depth
interview that will need for supportive information. Interview will be taken with two or three
highly ranked respective officials of all division and Loan department.
Data Processing: After conducting the research it will be justify the findings and will be
written in the form of a report.
Data Analysis: Analysis will be performed from the collected data and findings and
recommendation will make from the results. Select the topic
1. Conduct survey
2. Sorting information
3. Analysis and evaluation of the information
4. Report writing and presenting

12. 3
1.3 Scope:
Besides STARLET APPARELS LTD. it may be required to go other garment industry and
buying houses. I will talk with in-house department, like finance department, commercial
department, marketing department and all the group of industries to get right information for
my report.
This report must deals with factory observation of a garments industry and communication
with merchandisers then I will work in a factory suggest.
1.4 Limitations:
I think these are the limitation of the industry. The main limitations of the study are as
follows:
 The merchandisers of the company are always busy, so they could not provide the
information timely.
 Sufficient records, facts and figures are not available. These constraints narrowed the
scope of the real analysis.
 There is no special training department for study.
2. PROGRESS OF BANGLADESH RMG SECTOR.
The RMG business started in Bangladesh in the 70s but it was then merely a casual effort.
The first consignment of knitwear export was made in 1973 and the first consignment of
woven garments was made in 1977. Though started later, but it was the woven sector that
first dint a spot in the export pie of Bangladesh. In 1981-82 the contribution of woven
garments in the total export was 1.10%. Afterwards it is a story of sustained success for the
Bangladesh RMG sector. Within a decade the contribution of woven to the export basket
became 42.83% (1990-91) and the knitwear sector's contribution was 7.64% (1990-91).

13. 4
The entrepreneurs of the knit sector stepped forward with their expertise in the late 80's. With
their earnest efforts they were able to export US$ 14.84 million in 1989-90. Out of this US$
12.22 million was exported to EU and US$ 2.02 million was exported to US. The trend
continued in the knit sector because of the market access opportunity provided to the LDCs
under the Generalized Systems of Preference (GSP) benefit.
This is the rejuvenated beginning of the epic story of Bangladeshi knitwear sector RMG
sector that in true sense has been able to massive industrialization in a sustainable way with
effect on all probable human development aspects which is the encouraging part of the story.
The growth of knitwear sector is increasing at an increasing rate. The cumulative average
growth rate of the sector is 27%. And it is continuously grabbing a more portion in the export
pie of Bangladesh. This is mainly attributed to the facilities provided under the EC GSP and
ROO. The knitwear sector is heavily driven by these favorable policies and took the
opportunity to develop a strong backward linkage for the sector.
Year Knitwear Woven Wear Total Export
Volume (%)
change
Share(%)
in BD
Export
Volume (%)
change
Share(%)
in BD
Export
RMG Bangladesh
89-90 14.84 0 0.77 609.32 29.34 31.67 624.16 1923.70
90-91 131.20 784.00 7.64 735.62 20.73 42.83 866.82 1717.55
91-92 118.57 -9.62 5.95 1064.00 44.64 53.36 1182.57 1993.90

14. 5
Comparative Statistics of Knit Wear & Woven Wear (Volume in Million US$)
EU is the main export region of Bangladeshi Knitwear constituting 79% (US$ 2227.27
million) of total knitwear export in FY 2003-2004 followed by USA (14.27%, i.e. US$
402.38 million). This has become possible because it can satisfy the ROO of EU as value
addition is higher (75%) in this sector. After the adoption of the guidelines for the application
of the scheme of generalized tariff preferences by EC knitwear export from Bangladesh to
EU rose precipitously. The two-stage transformation requirement of ROO in 1999 boosted
market penetration in EU further; it contributed a growth of 101.19% since 2000-2001.
92-93 204.55 72.51 8.58 1240.48 16.59 52.06 1445.03 2382.89
93-94 264.14 29.13 10.42 1291.64 4.12 50.97 1555.78 2533.90
94-95 393.26 48.88 11.32 1835.09 42.07 52.85 2228.35 3472.56
95-96 598.32 52.14 15.41 1948.81 6.20 50.20 2547.13 3882.42
96-97 763.30 27.57 17.28 2237.95 14.84 50.65 3001.25 4418.28
97-98 940.31 23.19 18.22 2843.33 27.05 55.09 3783.64 5161.20
98-99 1035.36 10.11 19.49 2984.81 4.98 56.18 4020.17 5312.86
99-00 1269.83 22.64 22.08 3082.56 3.27 53.59 4352.39 5752.20
00-01 1496.23 17.83 23.14 3364.20 9.14 52.02 4860.43 6467.30
01-02 1459.24 -2.48 24.38 3124.56 -7.12 52.20 4583.80 5986.09
02-03 1653.83 13.34 25.26 3258.27 4.28 49.76 4912.10 6548.44
03-04 2148.02 29.88 28.25 3538.07 8.59 46.54 5686.09 7602.99
04-05 2819.47 31.26 32.58 3598.20 1.70 41.58 6417.67 8654.52
05-06 3816.98 35.38 36.26 4083.82 13.50 38.78 7900.80 10526.16
06-07 4553.60 19.30 37.39 4657.63 14.05 38.25 9211.23 12177.86

15. 6
Knitwear Export to Major Markets
Bangladesh RMG sector has successfully passed some critical tests and is now sailing with
two masts: knit and woven. The sub-sectors are now in healthy competition among
themselves to take the role of leadership within the country.
Comparison of Export Quantity
In FY 2003-04, knitwear for the first time exceeded woven wear and became the leader in
terms of quantity exported with 91.6 million dozens. The amount of woven export was 90.49
million dozens. Knitwear is still leading in terms of quantity exported and is widening the gap
day by day. The present difference in favor of knitwear is 56.21 million dozens. In FY 2003-
04, the contribution of two RMG sub-sectors in national export were as follows: Woven
Garments 46.54% and Knitwear 28.25%. In FY 2004-05 the figures have changed
dramatically, the share of woven garment to the country's export has reduced to 41.58%, on

16. 7
the other hand the share of knitwear has increased to 32.58%. It indicates clearly that the
knitwear is performing well in both ways. In FY 2005-06 the scenario is as under:
 Knitwear export increased by US$ 997.51 Million (35.38%)
 National export increased by US$ 1871.64 Million (21.63%)
3. HISTORICAL PERSPECTIVE OF MERCHANDISING.
After World War II the sales representatives took orders and the manufacturing division of
accompany stock position. The profitability of the company was dependent primarily on
efficient manufacturing. Under this structure manufacturing executives wielded tremendous
power within the organization and within the industry. In the 1960s, brand recognition
became very important. The concept of marketing was embraced by the apparel industry to
evaluate consumer needs and strengthen the image of growing apparel companies through
advertising and promotion. The marketing function was added to company structure. The
rapid growth of many apparel companies also created a new focus on finance and cost
containment, introducing the function of finance and administration. In the late 1960s the
companies that embraced modern marketing concepts prospered, and the marketing
executives took on increased responsibilities and authority within the organization.
Understanding the need to fulfill consumer demands, product development department were
established with creative design capabilities. Early merchandisers focused on overseeing the
design function to ensure that market data where interpreted into desirable product lines in a
timely manner. In the 1970s and 1980s those companies that were able to successfully
interpret the rapidly changing whims of the fashion-buying public into fresh new styles
prospered. This prosperity depended on the talents of the new breed of professional apparel
merchandisers.
After 1980 the garments sector of Bangladesh began to grow as an industry. Lot of
nonprofessional & non-skilled people were started the dealings. Day by day the sector grew
up and it became the main earning source of our country. Foreign experts were hired to
increase the productivity and make the local people skilled. Now more than 77% of the total
export is done from garments sector.
From the beginning Merchandising was the most important part of RMG sector.
Merchandisers were the key people to deal with the buyers and take the orders as well as
make the shipment with expected quality. It is an expert Merchandiser who can bring profit to
his company. But history says that if the Merchandisers behaved more professional the loss
of RMG sector could be minimized

17. 8
4. DETAILS DESCRIPTION ABOUT MERCHANDISING.
Merchandising:
Merchandising is a business on marketing activities responsible for ensuring a products
description both quality and quantity. Merchandising means total responsibility of a
Merchandiser.
The key factors behind this are low technological development, lower output, cut throat
competition, high raw material cost, inadequate infrastructure, traditional productivity,
unfavorable regularity policies, and globalization in fact. However, there a fair list of the
producers, suppliers, and exporters that are fully acknowledge with regularity policies and
formalities, international marketing policies and procedures. The only concern is in executing
their productivity initiatives, and meeting with order deadlines.
Now days, major companies are adopting merchandising concepts, which comply with all
procedures to execute and dispatch the shipment on time considering quality, cost and time.
Merchandisers are serious in the success of any garment business. They provide the right
products at the right time, enabling a company to match with latest market trends and meet
the market demand. In the merchandising concept, time management is a gig to manage ones
time properly, so he can focus on value adding actions.
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.
4.1. Definition of merchandising.
Merchandising - Merchandising involved with trade (buy & sale).
Apparel Merchandising – Apparel merchandising involved in garments trade (Goods are
bought and apparel sold).
Merchandiser – Merchandising may be defined as: - Person who merchandises the goods,
specifically for export purposes. Term Apparel Merchandising means:-
 Order confirmation by negotiation
 Buying raw materials and accessories
 Producing garments
 Maintaining required quality level
 Exporting the garments with in schedule time
From the above definitions, we can say that a person who involved in apparel merchandising
needs a wide range of knowledge and skills to perform his/ her job successfully. The job
itself is Technical and general as well.

18. 9
4.2 . Concept & Idea of Merchandising.
Concept:-
"Merchandising" is known to the persons specially involved in garments trade. The term
merchandising has been derived from the merchandise. Merchandise means goods that are
bought & sold.
The term "Merchandising" may be defined as Person who merchandises the goods,
specifically for export purposes. Garments merchandising means buying raw materials &
accessories, producing garments, maintaining required quality level and exporting the
garments within schedule time. From the above definitions, we can say that a person involved
in garments merchandising needs a wide range of knowledge & skill to perform his job
successfully. The job itself is Technical and general as well.
Idea about merchandising:-
Merchandising is planning developed and presenting product line for identified target market
with regard to pricing assorting styling and services must be planned developed and
presented. Merchandising is most distinct as a business function among firms that deal with
products that have demand for frequent change. Consequently the foundation of
merchandising principles is rooted in the apparel business. The textile and apparel business is
fascination to study and compared to other industries, has many unique characteristics.
4.3. The Modern Merchandising:
In retail commerce, merchandising means maximizing merchandise sales using product
design, selection, packaging, pricing, and display that stimulates consumer to spend more.
This includes disciplines in pricing and discounting, physical presentation of products and
displays, and the decisions about which products should be presented to which customers at
what time.
The role of merchandising was redefined in the late 1970s. Apparel companies could no
longer focus solely on efficient manufacturing to be successful. Target market analysis,
Product development, sourcing manufacturing throughout the world and inventory
management had to be under effective & positive control. Merchandiser must be able to
rigorously plan and control the functions involved in developing product, sourcing it and
getting it to the customers in time, as well as have a keen understanding and appreciation for
creative design. It is this balance of solid analytical thinking and abstract creative expression
that makes the ideal merchandisers such a unique individual.

19. 10
 The merchandising executive must combine logical thinking with intuitive and expressive
creativity.
 Merchandiser may be defined as, Person who merchandises the goods, specifically for
export purposes.
 In terms of Apparel Merchandising, order confirmation by negotiation, buying raw
materials and accessories, producing garments, maintaining required quality level,
exporting the garments with in schedule time are the main duties of a merchandiser.
4.4. Type & Function of Merchandising:-
Merchandising
Merchandising is the department which mediates marketing and production departments. It is
the methods, practices, and operations used to promote and sustain certain categories of
commercial activity. It includes directing and overseeing the development of product line
from start to finish. Marketing and merchandising department: A team of merchandisers and
marketers work together under a profit controls head. Merchandisers handle the foreign
buyers. The teams are made according to the buyers being handled.
Merchandiser
The person who is related in merchandising is called merchandiser. The merchandiser
coordinates with the design team to effectively present the product or product line. He or she
develops colors and specifications, and performs market research to determine the most
effective ways to sell and promote the product. This person needs strong communication and
negotiation skills and visual and analytical abilities. He or she also needs to be a creative and
innovative thinker.
If anybody has to be designated as Merchandiser then the word itself demands some qualities
from that individual, now let us see what all are the hidden meanings there in the word
¨MERCHANDISER¨
 M- Should have good Managerial capacity.
 E- Efficient in both English written and spoken.
 R- Having high sense of Responsibility.
 C- Always keep commitment.

20. 11
 H- Leads Honest life.
 A- Attitude should always be positive in resolving any problem.
 N- Never does any argue with buyers and seniors.
 D- Fully Devoted to his service.
 I- Always well Informed about his all orders.
 S- Sincere in office and daily works.
 E- Enthusiastic in nature.
 R- Regular in e-mail correspondence
Types of Merchandising:
Two type of merchandising done in garment exports
1. Marketing merchandising.
2. Product merchandising.
Main function of marketing merchandising is
1. Product Development
2. Costing
Ordering Marketing merchandising is to bring orders costly products development
and it has direct contact with the buyer.
Product Merchandising:
Product merchandising is done in the unit. This includes all the responsibilities from
sourcing to finishing i.e. first sample onwards, the products merchandising work start
and ends till shipment.
Function of Merchandisers:
1. Developing new samples, execute sample orders
2. Costing
3. Programming
4. Raw materials / Accessories arrangement
5. Production scheduling (or) route card drafting
6. Approval of various Process, Pattern and size set
7. Pre-production follow up
8. Meet Inspection Agencies
9. Production controlling
10. Identifying shortages and make arrangement for the shortages
11. Following quality assurance procedures, quality control procedures
12. Monitoring the in-house, sub-contractors and junior activities
13. Buyer communication
14. Communication with sub-contractors, processing units & other 3rd parties
15. Proper reporting
16. Highlighting to the management
17. Record maintenance
18. Developing samples
19. Placement of orders to suppliers
20. Taking measures for consistent production.

21. 12
5. IMPLEMENTATION OF MERCHANDISING.
RMG sector has great effect on our, country lot of people are fond of an opportunity to
improve their life style by involving in garment sector. Merchandising is the key section for
the garment industry, garments sector basically depends on buyer order. If the factory able to
meet the buyer requirement and delivery the quality goods on time then the factory will be
profitable & can be extend their business & exist in the competitive market.
Objectives Implementation of Merchandising:
1. Help develop and implement effective merchandising plans by working with retailers,
manufacturers and licensing companies
2. Review and help manage merchandising operations
3. Develop and implement merchandising plans that are as individual as each of our
clients by custom-designing merchandising processes based on each of the client's
one-of-a-kind business strategies
Methodology Implementation of Merchandising:
1. Review existing merchandise planning methodology and practices
2. Provide new tools and training to implement best practices (Open-to-Buy Excel
Spreadsheets)
3. Suggest new methods and software for planning
4. Assist in install, testing and use of new software and/or new procedures
In the garments manufacturing sector merchandiser‟s has different steps of work to
accomplish. Merchandiser has to follow-up the full order including taking the whole
responsibility. Merchandiser has to undertake & have knowledge about each & every section
of garment. But most of the time garment merchandisers face plenty of problems like non-
coordination, miss-communication, understanding buyer requirements, missing chain of
commands, miss collaboration supply chain management etc. virtually this research based on
Proper Merchandising & Quality management system in RMG sector. This report is divided
in to two parts. Part „A‟ is defining the proper merchandising management system and part
„B‟ is defining the proper quality management system.
5.1. Importance of Merchandising:-
We can easily understand the importance of merchandising in our garments industry.
Merchandising is playing a vital role to make new business development process. We will
easily understand the importance of merchandising by following words-
 Merchandising helps for business development.
 Ensure the products in time delivery.
 Create a market in garments industry.
 To ensure money in the bank.
 Helps for 76% total export of Bangladesh.

22. Page | 13
 Organize supply chain, monitoring and controlling.
In considering the importance of visual merchandising on retail businesses the single and
most important reason is to engage and inspire shoppers, to encourage them to buy more
of the products you want them to, increasing your sales, margin and return on space – after
all, you are running a business! That engagement process of course starts even before they
have set foot in your store.
5.2. Build up strong network with buying house, supplier of fabrics and accessories:-
Without bringing up someone close you may not benefited. For this reason a merchandiser
should have a strong network with all buying houses and suppliers so that he can run his
work properly.
Doing all the works a merchandiser can go for the next stage. His second step starts with
getting new order. When a merchandiser gets new order he has to do the below works.
1. Receive product package from buyer: His second stage‟s work begins with receiving
product package from his customer.
2. Discuss with planning and product department for production space and ability to
do the work: After observing the product package a merchandiser should have a sound
talk or discussion with the planning and production department about the package to
settle whether they are able to make the product or not.
3. Analyze product package: On the basis of a product package an order will be going on.
So analyzing product package is one of the important duties of a merchandiser.
4. List out type of fabric and accessories: If a merchandiser analyzes a product package he
can list out what type of fabrics and accessories needed for the package.
5. Do consumption of fabrics and accessories: List out fabrics and accessories he will go
for the consumption done.
6. Do the costing and quote price: After doing consumption a merchandiser will be clear
about the costing and he will quote the price accordingly.
7. Negotiate and confirm price: This is the last of a merchandiser performing the
responsibilities of second stage. He should negotiate about the price and confirm it.
6. RESPONSIBILITY OF A MERCHANDISER.
In order to fully appreciate the blend of characteristics and traits that are needed for an
effective merchandiser, it is important to understand the responsibilities the job entails.
Depending upon the size and structure of a company, the merchandiser may be responsible
for some or all of the functions shown in the figure 4.1.

23. Page | 14
6.1. Some Important work of a merchandiser :
Most importance things for a Merchandiser are:
 Communication.
 Planning
 Production Follow Up
The responsibility of a smart Merchandiser in handling order at four stages:
1. Sourcing for future orders/Buyers
2. New Order
3. Confirmed Order
4. Running Order
Order → Process → Execute
Some qualities of a Merchandiser:-
1. Language skill.
2. Computer skill.
3. Marketing skill.
4. Right consumption knowledge of various goods.
5. Costing knowledge of raw materials.

24. Page | 15
6. Order getting ability (That is if the merchandiser is known by actual rate of raw
materials, so that he can negotiate perfectly with buyer. In this way, the possibility of
getting order is hundred percent.)
7. Sincere& responsible.
8. Hard worker.
Activities of Merchandiser
Merchandiser need to work in a systematic way to ensure proper delivery of products at due
date. They had to do their work into daily, weekly, monthly and yearly basis. The activities
are-
6.2. Daily activities of a merchandiser:
 Checking mails and faxes. They need to give the reply within the day based on
priority.
 Checking port status and convey to concern department.
 Checking the shipments documents and inform concern department.
 Checking daily production status to understand shipment status
 Checking shipment schedule and raw materials production status
 Follow-up with sample section for different buyers sample
 Follow-up with store for fabric and accessories received
 Follow-up with the production manager for the production plan
 Follow-up with the commercial people L/C,BTB L/C and L/C amendment
 Price quotation and delivery confirmation to the buyer
 Reporting to marketing and merchandising chief on the daily activities.
 Reporting to executive director on the important issue like various meeting,
customer visits compliances and code of conduct
6.3. Weekly activities of merchandiser
 Meeting with the fabrics and accessories supplier
 Meeting with the buyer and buying houses
 Prepare fabric and accessories requirement list, checking with concern and
passing it to supplier with proper specification.
 Prepare purchase order with approval and sign of proper authority.

25. Page | 16
 Issuing pro-forma invoice with the approval and sign of the proper authority.
 Providing cost break-down to commercial department during L/C opening
6.4. Monthly activities of a merchandiser
 Meeting with the production people
 Meeting with the quality people and pattern master
6.5. Yearly activities of a merchandiser
 Yearly self-assessment on the performance based on number of buyers handled,
shipment quantity, CM charge negotiated, debit note settled with the supplier.
6.6. After confirming price a merchandiser works:
 Sourcing for future orders/Buyers: Doing this work he is to do the following
works-
 Collect Data of all Buying House: His/her first and for most duty that he is to be
well acquainted with all the buying houses how and abroad.
 Select potential Buyers: Collecting data of all buying houses he should select who
are the potential Buyers.
 Visit Local Buying House and Give Profile: After selecting potential Buyers he
should have to visit Local Buying House and give profile so that the Local Buying
Houses may know about them.
 Write mails to all Buyers: When a Merchandiser collects data of all Buying House
he will be got the contact address. So, writing e-mail to all Buyers is one of the major
duties to be performed.
 Attend National & International Seminars: The world has been a global village in
the arena of Marketing. So for marketing anything else everyone should attend
national & international seminars.
 Organize a display: In the business world those who can express/show/display
themselves are getting more business. So, organizing a display of his company is a pre
duty of a Merchandiser. For this a Merchandiser may open a well site with well
equipped.

26. Page | 17
6.7. Some Important Issue for a merchandiser as well as factory before starting work
with a new buyer:
 The buyer name & history.
 Final destination or place of delivers the goods.
 Buying house name (if any).
 Payment terms (L/C or TT or Contact).
 If L/C then, the Payment Condition at sight or deferred.
 If deferred then, 60 days or 90 days or any other.
 Price will be in FOB or CIF?
 Is the price will be including buying commission or w/o commission?
 Who will inspect the goods?
 If third party then who will be pay the inspection charge?
 Original art work with styling details or Scan copy must be needed.
 Actual & latest size specs with all the sizes which qty in purchase order / order
sheet.
 Fabrications details (Composition, Type, Gsm, Peach/sweated,
Enzyme/silicon or any other additional requirement).
 Additional fabric details (Appliqué etc, if any).
 Wash garments or w/o wash (if then washing details).
 Print details including dimension & placement. Such as pigment/rubber/flock/foil
etc (if any).
 Embroidery details (Normal stitch, appliqué, Badge etc, if any).
 Test requirement details (Azo or any others, if any).
 Order qty, if possible color wise (Approximately).
 Maximum body color (Approximately).
 Size wise qty ratio (%) = S/? %, M/? %, L/ ? % etc.
 Stripe repetition details with color (for yarn dyed).
 Viscose percentage for Grey mélange & Polyester percentage for cvc or pc
 Probable delivery date.

27. Page | 18
6.8. The Confirming Order after Merchandiser Do Some Work:-
Confirming price is meant to confirm the order. And this is the third stage on which a
merchandiser works. Firstly he is to do the followings:
 Time and action planning: Before starting the bulk production preparing time and
action calendar is the most important work. How they set up their line. for
maximum production and which method they will use for maintaining the lead
time.
 Prepare Gantt chart: Gantt chart is the consequence of time and action planning.
To maintain the time and action planning preparing the Gantt chart is very
necessary for a merchandiser.
 Receiving color standard: Matching color standard in accordance with the buyers
requirement. And for this reasons receiving color standard is an important task.
 Submission of lab dip: For fixing color standard lab dip plays a vital role in this
case. So for lab dip test submission is much necessary.
 Development of printing and embroidery: If there is requirement of printing and
embroidery the development of printing and embroidery should be going on along
with the bulk production.
 Booking of yarn fabrics, yarn and accessories: Before going to the bulk
production booking of yarn fabrics, and accessories are a pre- requisite for a
merchandiser to be performed.
 Receiving of master LC: Arranging all things above by this time master LC will
be reached to the bank and receiving the master LC from the commercial manager
is one of the responsibilities of a merchandiser.
 Opening of Back to Back LC: Being received master LC opening back to back
LC is more necessary. Otherwise, bulk production may be hampered for not storing
the goods on by the suppliers.
6.9. Follow Up all Sections :
Last of all a merchandiser should go for the next stage that is running order. It is only
following up all the sections. For the continuation of running order he is to firstly follow:
1. Follow T & A calendar: which is prepared in the third stage for smoothly running the
bulk production.
2. Follow Gantt chart: His second responsibilities in this stage are to follow up Gantt
chart.
3. Follow up the fabrics, dye lot, shade for woven and blanket for denim. Then he will
4. For knit composite factory he is to follow up yarn sourcing, yarn dyeing, knitting
program, dyeing program.
5. He is to follow up printing, embroidery and washing.
6. Follow up cutting, sewing and finishing.
7. Arrange all samples: After getting production he is to arrange all samples.
8. Arrange all lab tests.
9. Arrange all inspections.
10. Ensure shipment of garments on time.

28. Page | 19
7. MERCHANDISING PROCESS FLOW.
7.1. Garment Merchandising process flow.
Process Flow of Merchandising:
Merchandiser
Negotiation with buyer
Export order collect
Costing of accessories
Send to the buyer
If ok then sample making (according to buyer requirement)
Get approval
Go to production
In-house of accessories
Line balancing
Production continuing (follow up)
Inspection of the produced garments

29. Page | 20
Assembling with polybag,carton etc
Preparation of banking
Shipment / Delivery.
7.2. Negotiation (Price) Process and Ending of Negotiation:
After confirming the order Company does an agreement between buyer and Merchandiser.
In the contract normally shows the Purchase Order # & style # based on what Essays
proceeds under this contract. After completion the contract with two parties we submit the
contract to our bank & start sourcing of different fabric and trims.
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:
Preparation
Effective preparation is also vital to successful communication. It is essential that the buyer
also has identified the maximum and minimum positions that she will accept for a range of
factors including:
 product price
 order size
 Lead- time.
Offer
The buyer and supplier can make specific proposals to set the boundaries of the negotiation.

30. Page | 21
Counter and revised offers
This is the real bargaining where elements of the order, such as number of units,
product details, and lead-time and so on are being decided in the context of an overall
cost price the buyer should make firm proposals.
7.3. Negotiation (Price) Process and Ending of Negotiation as following:
Arrange a meeting
Show the price to buyer
Buyer asked about high price
Arguments about high price with buyer
Buyer show the new price
Make win situation
Fixed price
Placed a new order
Ending the negotiation by dinner
7.4. Process For Implementing Merchandise Plans:
Information is gathered about target market needs and prospective suppliers.
The retailer chooses firm-owned, outside, regularly used and/or new supply sources
of merchandise.
The merchandise under consideration is evaluated through inspection, sampling
and/or description.
Purchase terms are set. They may have to be negotiated in their entirety or through
uniform contracts.
The purchase conclusion is made-manually or automatically.
Merchandise handling decisions are taken relating to receiving & storing, price &
inventory marking, displays, pilferage control etc.
Reordering decisions are made.
Re-evaluation of merchandising plans takes plac
Garment merchandising process starts once the order / fabric commitment is received and the
product development department hands over the file to production merchandiser and ends
when the goods reach the buyers. The entire cycle involves all activities directly or indirectly

31. Page | 22
related to procuring of materials, planning and monitoring of the order. A brief outline of the
procedure is as below:
Merchandising process flow
PREPARE
DETAILED T&A
FABRIC ORDERING FIT CYCLE
TRIM ORDERING
FABRIC PO,
PI, LC
PILOT YARDAGE IN-
HOUSE
INSPECTION
SHRINKAGE TEST
BULK IN-HOUSE
INSPECTION
TEST REPORTS
TRIM PO,
PI
BULK IN-HOUSE
INSPECTION
TEST REPORTS
FIT
APPROVAL
SIZE SET &
SEALER SAMPLE
APPROVAL
PRE-PRODUCTION MEETING
ALL DEPARTMENTS
ADVISED OF THE
T&A
RECEIPT OF ORDER
PILOT RUN APPROVAL
BULK
CUTTING
SEWING
FINISHING
PACKING
FINAL AUDIT
SHIPMENT OF GOODS
AUDITS DONE AT
VARIOUS STAGES
OF PRODUCTION,
TOP/PRS
SAMPLES SENT
TO BUYER AS PER
REQUIREMENTS.
PREPARE
DETAILED T&A
FABRIC ORDERING FIT CYCLE
TRIM ORDERING
FABRIC PO,
PI, LC
PILOT YARDAGE IN-
HOUSE
INSPECTION
SHRINKAGE TEST
BULK IN-HOUSE
INSPECTION
TEST REPORTS
TRIM PO,
PI
BULK IN-HOUSE
INSPECTION
TEST REPORTS
FIT
APPROVAL
SIZE SET &
SEALER SAMPLE
APPROVAL
PRE-PRODUCTION MEETING
ALL DEPARTMENTS
ADVISED OF THE
T&A
RECEIPT OF ORDER
PILOT RUN APPROVAL
BULK
CUTTING
SEWING
FINISHING
PACKING
FINAL AUDIT
SHIPMENT OF GOODS
AUDITS DONE AT
VARIOUS STAGES
OF PRODUCTION,
TOP/PRS
SAMPLES SENT
TO BUYER AS PER
REQUIREMENTS.

32. Page | 23
7.5. Receipt of Order.
Receipt of an order means final confirmation of the order from the buyer. Since, this
is the final confirmation it is done by means of a legal document called a PO
(purchase order) or an FC (fabric commitment).
PO (purchase order) – this is a legal document stating the quantity, delivery, price,
style no, buyer, vendor details. On receipt of a PO it is very important that the
merchandiser checks all details and confirms that they are correct like – quantity,
delivery date, and price, style no, style description, color no & reference if mentioned,
shipment mode, shipment port, vendor address, buyer address.
FC (fabric commitment) – fabric commitment is a legal document confirming that
the buyer will be buying the said quantity of a particular fabric. A garment style no
need not be mentioned on this document as it is a commitment only for buying fabric.
This kind of a legal document is used by the buyer when there are very probable
chances of change in the style or the same fabric is being used in a number of styles
and the buyer has still not decided on the quantity to be purchased in each of the
styles. Hence in such a situation the buyer gives a block booking for fabric.
Once the order is received four different activities are started off simultaneously.
These activities are – preparing a detailed T&A, Fabric Ordering, Trim Ordering, fit
cycle and sample approvals.
7.6. Time & Action plan (T&A) Preparations.
Time & Action planning is a process which will help you to focus your ideas and to decide
what steps you need to take to achieve particular goals that you may have. It is a statement of
what you went to achieve over a given period of time. An effective action plan should give
you a concrete timetable and set of clearly defined steps to help you to reach your target. Ina
garments factory time & action plan maintained by executive summary which is done and
follow up by merchant. Actually T&A start at the time of buyer proposed projection.
According to garments projection factory merchandiser give projection of fabric and all trims
to relevant supplier. So we can understand that T&A start before the production.
In brief we can say that according to T&A we will allocate our production line for any
particular style. By this we have clear idea about fabric and trims booking their production
lead time & in house date. So by proper T&A we can successfully run our allocated line for
each style to hit the accurate TOD.

33. Page | 24
Example:
ISW OPD TOD Comments
WK 17(19th
Apr) WK 2(4th
Jan) WK 11(7th
Mar) for local fabrics
WK 21(17th
May) Wk 2(4th
Jan) WK 15(4th
Apr) for foreign fabrics
ISW: (Estimated shop week): ISW means the week of garments entrance in shop. Here
Monday is the only day of any week for garments to shop entrance.
OPD (Order placing date): OPD means the week of order placing. Here Monday is the only
day of any week for order placing.
TOD (Time of delivery): TOD means the week of delivery. Here Sunday is the only day of
any week for garments delivery.
We have to give final inspection in morning after 9 am on the date of TOD. If goods qualities
are ok for shipment then buyer QC will give ok to ship copy. Garments reach in port with this
ok to ship certificate & shipping agent will take the garments in their wire house. Shipping
agent will not accept garments if supplier can‟t show ok to ship copy.
7.7. According to T&A we will do our work according to below time schedule:-
Fabrics booking will be done with in 4th
Jan both foreign & local.
Supplier will start production of fabrics.
We will ask for sample fabrics for size set samples at 10th
Jan with available color but
with actual construction. Because, construction is related with fabrics shrinkage,
which effect fit or size measurement of a garment.
They will ask for counter samples & in house test fabrics at 24th
Jan. We will take all
accessories approval before order placing just after projection.
We also complete all foreign accessories booking with in 5th
Jan we will take 40% of
sewing foreign accessories & 10% of finishing foreign Accessories by air with in 14th
Jan. Rest of all qty by sea.
We will first start production with local fabrics than after foreign fabrics in-house, we
will minimize local fabrics line & start foreign fabrics line at full speed.

34. Page | 25
Figure6.2

35. Page | 26

36. Page | 27

37. Page | 28
7.8. Fabric Ordering.
This activity involves ordering of fabric with the mill. The important points to be taken care
of during this activity are: Accurate computation of the requirement. This is essential to
ensure that during bulk production the materials do not fall short nor are they in access and
there are leftovers after the order is shipped. An accurate calculation of material requirement
can be done if the BOM (bill of materials) as provided by the buyer in the specification sheet
is studied thoroughly. Apart from just ensuring that the quantity is correct the BOM also
helps in checking that all materials required in completion of the order are ordered and
nothing has been missed out. Selecting the best vendor for the materials in terms of quality,
price and delivery.
7.9. Payment Term.
The fabric order is places by the merchandiser by means of a purchase order. The purchase
order should list down the following very clearly –
 Name & Reference no of the article.
 Quality description of the article.
 Quantity.
 Price.
 Delivery date.
 Quality parameters as required by the buyer.
 Payment terms.
 Pilot yardage requirements if any.
The mill sends a PI (Performa invoice) confirming the details as mentioned in the PO. In case
of any changes required in the PO the same are also mentioned in the PI. The mill also
provides its bank details on the PI so that the factory can work out the payments. There can
be various kinds of payment term agreements between the buying and the selling parties as
below –
 Some percent of payment in advance, the balance at sight – example, 20% advance, 80%
at sight. This means that 20% of the total value of goods is paid in advance, the balance
80% is pain once the goods are received by the buyer (factory). This payment can be done
by means of DD (demand draft), cheque or TT (telegraphic transfer)
 LC (letter of credit) – in this payment mode the banks of both parties are involved. The
buying party (factory in case of fabric) opens up a LC with its bank and the same is
transferred to the mills bank. On acceptance of the LC by the mills bank, this becomes a
legal contract between the two parties. Once the goods are dispatched the mill submits the
dispatch details (Invoice, packing list and Air way bill details) in its bank and gets the
payment for the goods. The mills bank then approaches the factories bank and gets its
payment from the same. The factories bank then gets the payment from the factory. The
LC once made, a copy of the same should be called in by the merchandiser and studied to
make sure all details as mentioned are correct. The details to be looked at are:

38. Page | 29
 Name & Reference no of the article.
 Quality description of the article.
 Quantity.
 Price.
 Delivery date.
 LC expiry date.
7.10. Pilot Yardage.
Pilot yardage helps is ascertaining any problems that may come in the bulk yardage. The mill
processes the first 100 – 200 yardage to ensure that the same meets the quality, color
parameters as laid down by the customer. This helps the mill in taking corrective actions to
eliminate any defects or problems. On the other hand the factory also requires yardage to
complete all the pre-production processes such as sample approvals, size set etc. This pilot
yardage helps the factory in making all the pre-production samples. Also the factory does
fabric inspection and fabric shrinkage test to have an idea of how the bulk fabric will behave.
At this stage if factory observes any problems in fabric behavior the same is immediately
conveyed to the mill so that the mill can take corrective action.
7.11. Inspection.
Fabric inspection report:
This is generally a third part inspection done by buyer nominated inspection company like
ITS, MTL etc. The most common and used method of inspection is the 4-point system. In this
system every defect is given a point between 1to 4 based on the nature of the defects. A
maximum of 4 points per yards of fabric can be allocated. Fabric having more those 40 points
per 100 square yards is considered to be rejected. Different customers have different point
levels depending upon how premium the brand is and also on the nature of the fabric. For
example: a manmade fiber should have lesser defects that a natural fiber and hence
acceptable points level for polyester is kept lower than that of cotton.
Fabric shade band:
The mill segregates the fabric on the basis of shade and makes a shade band. In general a
maximum of 3 shade bands are acceptable by customer, however this can again vary from
customer to customer. The customer evaluates the different shades by means of a grey scale
rating as acceptable.
Fabric test report (FPT – fabric performance test):
Yardage from bulk is sent to the nominated testing laboratory such as MTL, ITS for testing
the physical and color parameters of the fabric as required by the customer. The testing
laboratory also provides a wash care instruction for the fabric, which essentially means the
best washing conditions for the fabric.

39. Page | 30
Fabric shrinkage report:
The mill tests 10% of the fabric to confirm that the fabric adheres to the specifications as laid
down by the customer. For example if the customer accepts +/- 3% shrinkage, fabric having
5% shrinkage is rejected. The determining the shrinkage the fabric is tested as per the best
washing conditions advised by the testing laboratory on the fabric test report.
 Once fabric passes through all the above tests and inspections it is shipped to factory. The
factory again checks the fabric on 4-point system and also checks the shade bands and
also does fabric shrinkage test to confirm that they adhere to the requirements of the
buyer.
 With regards to fabric inspection the factory generally inspects 10% of the fabric, in case
there is a problem the factory goes on to inspect 100% of the fabric.
 For fabric shrinkage test – different procedures have to be adopted for ascertaining the
shrinkages for a washed and a non-washed style.
 The shrinkage that needs to be included in the pattern. The fabric is washed based on the
recommended wash care instructions in the FPT.
 In case of a washed garment, 100% fabric should be tested for shrinkage. The test is done
as per the wash recipe. Once all rolls are tested, the rolls are segregated as per the
shrinkages and different patterns are made to incorporate the shrinkages.
 Factory then also checks the fabric for shade banding, compares the same with the once
sent by the mill and if found acceptable sends one sent out to log the same with customer.
Once the buyer confirms that the shade bands are ok, the fabric is ready to be cut.
7.12. Trims ordering.
It is a similar process as done for the fabric is done for trims except for pilot trims. The
factory can call in trims for sampling and these are called as PROMO TRIMS.
Sampling
Sample making is one of the most important activities in the garment manufacturing process.
The manufacturer always needs at least a sketch of the garment, original patterns,
specification and the designer‟s sample to make high quality sample garments at the
contractor‟s factories. Garments factories are used different name used for different types of
samples. In the sample departments of garment factories different type of sample are made
for different purposes.
 Proto Sample.
 Approval Sample.
 Fit Sample.
 Size set Sample.

40. Page | 31
 Reference Sample.
 Offer Sample.
 Salesman Sample.
 Photo Sample.
 Pre Production Sample.
 Production sample.
 Shipment Sample.
Proto Sample: Proto sample is the initial sample made by the manufacturer as per as the
details of the export order, and send to the buyer, to check whether the styling of the garment
is ok as per the requirement of the buyer. Proto Sample can be made in alternative fabric &
accessories, which is not with the original fabric and accessories. That is as per the sketch &
space in the production order (P.O) sheet).
Approval sample: The manufacturing must produce sample prior to communication of the
mass scale production of a particular style. The number of samples required, vary from buyer
to buyer. Most of the time buyers ask for 3-5 samples from the manufacturer. When
constructing these samples the manufacture‟s instruction should be followed.
The original patterns, original sample & the specification are required to produce these
samples. After constructing these samples manufacturer should send them to the buyer or to
the agents to get the approval for the mass production. There are two main types of approval
samples and they are known as:
 Fit approval samples.
 Size series samples.
When an order is placed and confirmed, the manufacturer has to produce samples for the
buyer. The required size of the samples is generally given by the buyer. If the size of samples
is not given the middle size of the order range is taken as the appropriate size. That is if an
order is given for a range of sizes, then the sample garment is made from the middle size. The
samples produce for the given size or the middle sizes of the order are known as fit approval
samples.
Once fit approval samples are approved by the buyers, request for samples in all the sizes of
the order before the mass production starts. Then they are in a position to see the quality of
the samples of all size of the order. These samples are known as size series samples. Even if
there is no such request from the buyer, it is batter to produce to size series samples for use
within the factory. Then they can identify the problem that might occur, when they produce
different size in the mass production.
Fit Sample: Fit Sample is made by the manufacture (exporter) and sends to the buyer, to
check if the fittings of the garments are ok or not as per the requirement of the Buyer.
Unusually the Fit sample is made in alternative Fabric & accessories & it is made, which ever
comes at the middle of the export order sizes. For example: If the export order sizes are, S,
M&L, the Fit Sample will be in M size.

41. Page | 32
Size Set Sample: Size set sample contains all the size of the export order contains sizes
small, medium, large size. Then the size set is sample will contain all the size, the sample S
are made by grading the M size sample. Alternative fabric & accessories can make this
Sample.
PP Sample (Pre Production sample): original fabric & Accessories make PP Sample, and
this sample is made just before the Bulk production. This sample represents the original
garment to be made in Bulk production. The buyer checks the PP samples & after the Buyer
gives approval on PP sample, and then only the manufacture goes for bulk production of the
export order. PP sample should include all the colors of the style.
Production Sample: Production Sample is taken from production unit, by the bulk
production is continuing, production sample represents the original production pieces to be
exported to Buyer. Usually the exporter send production sample to Buyer once only, during
the Bulk production, But in some cases where the export order quantity is large enough for
single style for example in case of Buyer – Wal-Mart,
The production samples were sent three times during the Bulk production. First Sample sent
during 20% to 30% of Bulk production. Second fit sample sent during 50% to 60% of Bulk
production and third production sample sent during 70% to 80% of Bulk Production.
Reference sample: Reference purpose when produce the extra sample is called reference
sample. When we produce the approval sample then we have to produce an extra sample for
reference purposes in the factory, Reference sample is also called keep sample. After getting
the approval from buyer, the reference sample can be released for mass production.
When releasing the reference sample for mass production all this comment made by agents
and or by the buyer must be attached clearly to the reference samples. The sample kept in the
sample department until getting the approval from the buyers after inspecting the approval
samples.
Offer Samples: If the factory wants to attract new buyers, they have to be won by showing
samples of garments that the manufacturer can offer. For this purpose they produce on their
own, samples of new designs. These samples are known as offer samples. The ultimate
objective of producing these offer samples is to attract new buyers to find new markets.
Shipment Sample: This Sample the manufacture keeps with them, covering all sizes &
colors of the style of garments they exported. It is for the reference pieces, just to keep record
for future reference.

42. Page | 33
7.13. Production Sampling.
Production goes through different kind of stapes. It needs many quality checking and
approval to be perfect. The steps are defined below.
Sample approval
While fabric and trim ordering is happening, simultaneously the sample approval procedure
is also underway. The moment a style is selected it goes to the tech department for fitting.
Here models wear the samples and they are evaluated in terms of fit, construction,
measurement. The buyer then sends out comments, which are called as fit comments. In case
another sample is requested the factory makes the same incorporating the comments and send
again to buyer. This process is called fit cycle. Different customers have different no of fit
cycles.
PP Sample
Once the fit sample is approved the factory makes a PP (Pre-production) sample. This can be
called by different names such as sealer sample, green tag sample etc. This sample is sent out
the buyer for final approval and once approved becomes the final sample on the basis of
which entire production is made and audited. This is the most important sample and one
should take care that everything on this sample is correct as this then becomes the standard.
Size set
Once PP sample is approved the next step is to make a SIZE SET. All the fit samples and the
PP samples are in the medium size, now the medium size is graded into the different sizes as
per the purchase order. The basic purpose of size set is to ensure that grading between sizes is
correct.
Pre-Production meeting
In this meeting everybody concerned with the style sits together to make sure that everybody
is on the same page and understands the product. Hence, this meeting has the merchandiser,
production in-charge, cutting, finishing, fabric in-charge, line supervisor, pattern master,
sample master etc. All tentative problems are discussed and solutions sought to execute the
order smoothly.
Pilot run
Once pre-production meeting is done the factory does PILOT RUN. Factory cuts 100-200
garments based on the order quantity. The pilot run is done on the assembly line and is aimed
at ensuring that the operators of the assemble line understand the required quality levels. This
is very essential since all samples prior to the pilot run (fit samples, PP & size set) are made
in the sampling unit. Once PILOT RUN is approved the factory goes into bulk production.
In line and interim inspections are performed during the production process to ensure that the

43. Page | 34
final product quality meets the required quality level. Once 80-90% of the goods are packed a
pre-final audit is done. This helps in taking corrective action if required before the final audit.
Generally since the final audit happens very close to the shipment date, the pre-final gives
factory a chance to amend problems if any.
Final audit
This is the last checkpoint before shipment. All aspects (packing, packaging, measurement,
construction & visuals) are evaluated. Once the garments adhere to the required quality
standards in all the parameters the shipment is passed and then the shipment is moved to thee
logistic team.
Now the merchandiser interacts with the logistic department, takes the shipment schedule and
sends the same to the customer.
7.14. Merchandising Season.
 The overall operation of a company has fixed a cycle which is dictated by the unchanging
sequence and durations that is called seasons.
 For clothing manufacturers, this means that certain deadlines have to be met if
merchandise is to reach retailers at the right time to meet the seasonal demands of the
general public.
7.15. Types of Merchandising Season:
For many years, most of the clothing industry worked on three-phase year which covered
four seasons as follows:
Phase-1: Spring merchandise.
Phase-2: Summer merchandise.
Phase-3: Combined Autumn & Winter merchandise.
A more recent selling pattern is to have three seasons during the year, with each season
divided into two seasons so as to introduce new merchandise to the public during the season.
The patterns are:
Spring-1: Spring merchandise.
Spring-2: Late Spring & early summer merchandise.
Summer-1: Summer merchandise
Summer-2: Late Summer & early autumn merchandise.
Winter-1: Autumn & early winter merchandise.

44. Page | 35
Winter-2: Winter merchandise.
H & M Buyer:
Spring =Oct-Dec
Summer =Jan-March
Fall =April-June
Holiday =July-Sep
(Order pressure on fall season)
GAP Buyer:
Fall =Jan-Jun
Spring =July-Dec
(Order pressure on spring season)
NIKE Buyer:
Spring =Sep-Dec
Summer=Jan-April
Holiday =May-August
(Order Pressure on summer season)
Oshkosh Buyer:
Season 1 =Oct-Dec
Season 2 =Jan-March
Season 3 =July-Sep
Season 4 =April-June
(Order Pressure on season 3)

45. Page | 36
7.16. Inspection Schedule of Different Buyer.
For year 2010
Buyer Name: H & M
Quantity: 150000
Order
placeme
nt date
Sewing
running
Wash
complete
Finishing
complete
1st
inspection
Final
inspection
First
Deliver
Second
Deliver
Comme
nts
4th
April
24th
April
5-6th
June
8-9th
June
10-11th
June
13th
June 13th
June
80,000pcs
27th
June
70,000pcs
For
local
Fabrics
For year 2010
Buyer Name: GAP
Quantity: 200000
Order
placement
date
Sewing
running
Wash
complete
Finishing
complete
1st
inspection
Final
inspection
First
Deliver
Second
Deliver
Co
mm
ents
2nd July 2nd
August
5-6th
Oct 8-9th
Nov
10-11th
Nov
13th
Nov 19th
Dec
100000pcs
26th
Dec
100000pcs
For
fore
ign
fabr
ics
For year 2010
Buyer Name: NIKE
Quantity: 100000
Order
placement
date
Sewing
runnin
g
Wash
complet
e
Finishin
g
complete
1st
inspectio
n
Final
inspect
ion
First Deliver Second
Deliver
Comm
ents
6th Jan 2nd
March
5-6th
May
8-9th
June
10-11th
June
13th
July
19th
July
50,000pcs
26th
July
50,000pcs
For
foreig
n
fabrics
For year 2010
Buyer Name: Oshkosh
Quantity: 110000

46. Page | 37
Order
placement
date
Sewing
runnin
g
Wash
complet
e
Finishin
g
complete
1st
inspecti
on
Final
inspection
First
Deliver
Second
Deliver
Com
ments
5th July 25th
March
5-6th
May
8-9th
June
10-11th
June
13th
July 19th
July
55000pcs
26th
July
550000pcs
For
local
fabric
s
Shipment:
There are three types of shipment process for garments. Which we get from order sheet.
1. Sea by Sea: Garments will go by sea from loading country to destination country.
2. Sea/ Air: From loading country garments will be go till Singapore or port Kelang (As
Singapore and port Kelang is the transit point) by sea & will go to last distention by Air.
3. Air: By Air: Garments will go by air from loading country to destination country.
H & M inspection schedule
First Deliver
Sea +Sea/Air (Sun- Monday):- Must handover goods to Chittagong port within Monday night
12 Pm.
Air :-( Sun – Thursday) Must handover goods to Dhaka Air port with in Sunday night 12pm.
Second Deliver
Sea (Thus +Wed):- Must handover goods to Chittagong port within Wednesday night 12 Pm.
If 2nd
cut off will be Sea/Air:- Inspection will be done at (Sun-Mon)
GAP inspection schedule
First Deliver
Sea +Sea/Air (Sun +Monday) :- Must handover goods to Chittagong port within Monday
night 12 Pm.
Air :-( Sun – Thursday) Must handover goods to Dhaka Air port with in Sunday night 12pm.

47. Page | 38
Second Deliver
Sea (Thus +Wed):- Must handover goods to Chittagong port within Wednesday night 12 Pm.
If 2nd
cut off will be Sea/Air: - Inspection will be done at (Sun-Mon)
Nike inspection schedule
First Deliver
Sea+ Sea/Air (Sun +Monday):- Must handover goods to Chittagong port within Monday
night 12 Pm.
Air :-( Sun – Thursday) Must handover goods to Dhaka Air port within Sunday night 12pm.
Second Deliver
Sea (Thus +Wed):- Must handover goods to Chittagong port within Wednesday night 12 Pm.
If 2nd
cut off will be Sea/Air:- Inspection will be done at (Sun-Mon)
Oshkosh inspection schedule
First Deliver
Sea +Sea/Air (Sun+ Monday):- Must handover goods to Chittagong port within Monday
night 12 Pm.
Air :-( Sun +Thursday) must handover goods to Dhaka Air port with in Sunday night 12pm?
Second Deliver
Sea (Thus +Wed) :- Must handover goods to Chittagong port within Wednesday night 12 Pm.
If 2nd
cut off will be Sea/Air: - Inspection will be done at (Sun-Mon)
8. SOME IMPORTANT SOURCING AND PRODUCTION DEVELOP
CONTROLLING PROCEDURE:-
8.1. Sourcing:
Bangladesh experts apparel items of more than 3,781.94 million dollars per year (Source:
Bangladesh Exports Promotion Bureau), but fewer and fewer companies manufacturing
in their won factories, sourcing is a growing responsibility. Sourcing may be the sole
responsibility of merchandising; it may be an independent, senior-level management
function; or it may be a shared responsibility. Whichever the case‟ the merchandiser must
understand the complexities of domestic and international sourcing. The term sourcing
implies the processes involved in procurement of the desired merchandise at the best
bargain from the most suitable source, with the objective of optimizing the cost, efforts

48. Page | 39
and time. Sourcing can also be defined as the process of identifying, conducting
negotiations with, and forming supply agreements with vendors of goods and services.
The elements of sourcing are spread across the various stages of the product development
process, such as the „Final Product Development‟ stage and the „Manufacturing Package‟
stage. The sourcing process has been depicted through the process flow diagrams on the
following pages. Determining how and where to manufacture apparel products has
become a major concern for most companies. A good sourcing executive must have a
working knowledge of manufacturing processes, quality assurance producer, garment
costing, product development, government quota and import legislation, international
culture and business practices and international banking and legal procedure. In addition,
the sourcing executive must be an excellent negotiator. When the responsibility for
sourcing falls upon the shoulders of merchandisers, it becomes extremely difficult for
them to fulfill this responsibility while dealing with the demanding task of product
development and meeting production deadlines. In many companies some of the product
development responsibilities such as Prototyping and fabric procurement are transferred
to the sourcing contractor as a value-added function. This occurs in the sourcing
contractor to review the progress of the current production others and also to work on
development the new product line.
8.2. Sales & Marketing Interface:-
Line planning, style selection and line presentation require a close working relationship
among merchandising, sales and marketing. Throughout the entire product development
process, merchandising should be obtaining valuable input from sales and marketing as to
how current styles are sealing at retail and trend projection from retail buyers. Periodic
style preview meetings to discuss line direction and line adoption meetings allow sales
and marketing to buy into the fine line. A good sales stuff maintenance constant
communication with key accounts and can therefore provide valuable current information
on changing market trends in retail sales. Merchandisers participate in line presentation to
the sales force during seasonal sales meetings. Merchandising has modeled the line plan
and developed the concept that holds the product themes and groupings together. It is
important for the merchandiser to be able the sales force in how best to clearly present
these concepts to the buyer. Merchandiser may attend a few sales presentation during a
season to get a firsthand understanding of how the buyer response to the line. Attending
sales presentations may be difficult for merchandisers because of their hectic schedule,
but this opportunity to see the buyers‟ reaction to the line can be quit valuable in helping
to maintain a clear understanding of the target market. A survey shows that the
merchandisers are responsible for fashion forecast. The merchandisers often use these
forecasts to commit early production authorization. This is especially critical for off-shore
production, which required a longer lead time than domestic production. Many times
these commitments must in advance of the line release data.

49. Page | 40
8.3. Product Development. Many apparel companies offer new style nearly every
month. The number of increased offerings creates an almost continuous mode in most
design departments. The merchandisers are responsible for coordinating design
activities. Merchandising must provide rigorous controls of the product development
process to ensure that balanced groupings of style are ready for each offering. At the
same time, companies are also trying to compress the product development time-line
to allow fabric and styling decisions to be responsive to the needs and wants of the
target customer, thereby improving retail sell-through and reducing the risk of
markdowns. Careful control of the product development process is vital to the success
of an apparel company.
The product development process begins with market and fashion research & ends
with the final session of the review. The product development process includes many
interrelated functions that effect on another. A poor decision or a delay in fabric
selection, creating a prototype, developing patterns, or preliminary costing could
eventually require redefining the line plan or development of new style concepts. The
merchandiser must keep a tight rein on the entire process if a company is to have the
most effective style ready for line release. The merchandising calendar is used to
establish time schedule and accountability for ach function of product development.
The merchandiser must monitor the calendar to see each functions completed on time
or must make adjustments for any missed deadlines. In order to unleash the full
creativity of a designer or stylist, it is important to have a „business mind‟ Organized
and controlling the product development process. The merchandisers perform this
function by providing a creative environment and positive direction for the design
team without losing sight of the marketability of the line. After all, merchandising is
responsible for the end product being stable and profitable. The entire process must be
accomplished while the critical timetables necessary to get the line completed by the
line release date are maintained.
8.4. Production Authorization.
Many apparel companies must commit to production before meaningful sales have
been generated, someone must decide what and how much to manufacture.
Merchandiser is directly responsible for production authorization. Merchandiser use
past sales histories, current market research, advances sales advice, and sales
forecasting models to make production authorization commitments. Unfortunately

50. Page | 41
there are no magic crystal ball forecasting models that can be zero in on the exact
styles by size and colors that will sold in any given season. An increasing focus is
being placed on forecasting systems. Apparel firms and retailers are striving to build
effect decision support system, fueled by data warehouses, to capture and analyze
their data, and provide them with completely new way to look at their vast amounts of
data on sales, customers and operations. The high cost of data warehouse technology
has caused most apparel companies to shy away from this high-tech approach for
forecasting.
8.5. Product Information System
Product information system or PIS refers to processes and technologies focused on
centrally managing information about products, with a focus on the data required to
market and sell the products through one or more software. A central set of product data
can be used to feed consistent, accurate and up-to-date information to multiple output
media such as web sites, print catalogs, ERP systems, and electronic data feeds to trading
partners. PIS generally need to support multiple data entry, multi-lingual data, and
maintenance and modification of product information within a centralized catalog to
provide consistently accurate information to multiple products in a cost-effective manner.
Production information system consists of every detail from cutting to sewing
like in cutting the data entered in bundle numbers, in sewing data entered per hour
production input & output wise by style number. Color wise.
NPT report- per day M/C cost $14.2
Per hour M/C cost $ 1.42
Software used in viyellatex
ESFS- efficient shop floor solution
FIS – factory information style
8.6. Efficiency calculation
Efficiency = No of operator x working hour x 60 x 100%
No of production x SMV
= 28 x 10 x 60 x 100%
800 x 21.45
= 16800 x 100%
17160
= 97%

51. Page | 42
Profit loss calculation
Only for sewing
= No of M/C x working hour x per hr M/C cost
= 20 x 5 x $1.42
= $142 cost per gmt
Earning
= cost making x production pcs
12
= 10 x 480
12
= $ 400
So profit will be = $400-$142
= $258
8.7. Fis Used For Daily Production:-
FIS is used for daily production status report input by an operator in the sewing floor,
called reporter.
FIS consists of
 Buyer
 Style
 Color
 Size
 Parts names
 Style No
 Color
 Order No
 Order quantity
 To be shift (drop)
 Cutting No
 Send qty
 Receive qty
 Rejection
 Factory name(in case of sub)
 Sewing input – daily
 Sewing output – daily
 Finishing input – daily/total
 Finishing output – daily/total
 Polly for urgent gmt
 Shipment status
 Print & embroidery

52. Page | 43
8.8. Basic knowledge of Work Study:
Observed time:
It is the time taken by the operator to operator complete his her job as observer d time by
work-study officer.
Basic time:
It is the time taken by the operator to operator complete his or her job had she or he
worked at 100% performance.
Allowance time:
It is the time allowed to an operator for non performing task such as going to laboratory,
rest, changing needle, taking instruction of supervisor etc.
Relaxation allowance:
It is the time allowed to an operator to attend to personal need.
Contingency allowance:
It is the time allowed to the operator when uncertain problem occur.
Machine delay allowance:
It is the time allowed to an operator for delay due to machine maintenance.
Style change allowance:
It is the time allowed to the operator where frequently style change occurs.
Special allowance:
It is the time allowed to an operator for start up time, shut down, cleaning etc.
Standard time:
It is the time required by operator to complete a job had she worked at 100% rating plus
allowance time.
Bottleneck time:
It is the highest time taken b y an operator compared to other operator‟s time, generally it
is the time beyond the U.C.L.
Rating
Rating is a speed of a qualified worker.

53. Page | 44
Organization efficiency
It is the efficiency of the production time.
Basic work content:
It is the time contents the work without any undue loss of time.
Work count:
It is the time value required by operation.
Ineffective time:
It is the time means time loss due to different design fault, production fault, finishing fault
etc.
Upper control limit:
Upper control limit is the time limit represents efficiency.
Lower control limit:
Lower control limit is the time limit representing 115% efficiency.
Pitch time:
Pitch time is the time taken by operator on average or Industrial operator‟s time shown on
the pitch diagram is called pitch time.
8.9. Work study is the most accurate method of setting Standard of performance
upon which effective planning and production control relies upon.
Production calculation formula:
 BPT (Basic Pitch Time) = Total standard time÷ No of operator
 UCL (Upper Control Limit) = Basic pitch time÷ 0.85
 LCL (Lower Control Limit) = 2×BPT-UCL
 Organization Efficiency = BPT÷ Highest bottleneck time×100
 Productivity = per hour production ÷ Total operator
 Production Target = (No of operator×3600) ×85% ÷ Total standard time
 Actual production = 3600÷Height bottleneck time
Work study method comprises eight steps, which are given below:-
Select: Select the job to be investigated.
Record: record data by collecting organization by direct observation.
Examine: Examine data critically; what is the purpose of action, where is the place of
performing it, the sequence in which the job is done, the person doing the job etc.
Develop: Develop the easiest & the most economic methods.

54. Page | 45
Evaluate: Evaluate the results of alternatives ways of doing the job.
Define: Define new method & time & present them to the concerned people.
Install: Install new method & train persons to apply them.
Maintain: Maintain new standard practice & set control procedures.
Why bottleneck time created:
 The operator has not the right skill.
 The operator makes more rejects & rework takes time.
 The machine is definite.
 The operator is not following work standard.
 The operator is not motivated etc.
How to eliminate the bottleneck time:
 By using automatic organization high performance machine.
 By mechanizing the relevant processes.
 By using better tools, folder, special work aids etc.
 By allotting the bottle process between more than the operator.
 By improving operator skill/ speed.
 By using addition machinery/ operator etc.
9. IMPORTANT MARKETING STRATEGY FOR A MERCHANDISER :-
9.1. Marketing strategy:
Merchandisers should have a proper marketing strategy. They should examine the
factors involved in developing a detailed understanding a target market. Evaluate the
importance of market segmentation and alternate marketing and proper methods of
data collection and industry information sources.
9.2. Target Market:
Apparel merchandisers make key decisions that create next year‟s fashion trends. This
decision must be based upon an in-depth understanding of their companies‟ target market.
This requires current, accurate and reliable information. It is easy for an apparel company
with a solid market image to become complacent and lose sight of target market
customers. This was the case with jeans giant Levi Strauss in 1998 when it continued to
lose important market share in its primary jeans division. The young shoppers Levi‟s once
had in its back pocket had moved on to fresher, more exciting brands. The company had
been notoriously insular and confronted with lost sales and revenues. Levi‟s was so busy
maintaining the status quo that it took the customer for granted. It was so blinded by its
success is could not see the tarnish accruing to its image. Meanwhile a, host of powerful
and jazzy new companies arrived, including designer brand like Tommy Jeans and
DKNY Jeans, private brands like JC Penney‟s Arizona and Canyon River Blues, powerful

55. Page | 46
specialty retailers like Gap Inc. and a host of hot junior names like Muddy, Paris Blues,
LEI, JNCO and Fobs. Levi‟s was being squeezed on all sides. This weak-up call required
Levi‟s to take a closer look at its target market and listen to its ultimate consumers who
were no longer satisfied with classic five pocket jeans. Apparel merchandisers must
participate in developing the proper marketing mix for their target markets. The primary
variables involved in the marketing mix can be expressed by the four „P‟s of marketing.
They are-
Product, creating the „right‟ garment in terms of silhouette, fabric, color and fit for the
current needs of the target market. „Product‟ also includes the proper product mix within
a line of clothing.
Place, getting the „right‟ garment to the target market‟s „Place‟, which is the retail outlet
used by the target market consumers. This may be a retail store or a direct purchase
through catalog or internet sales. The garment reaches the customer through a channel of
distribution, the process that moves it form the ultimate consumer.
Promotion, informing the target market about the product. The promotion function
usually falls under the preview of the marketing department. However the merchandisers
are frequently responsible for developing the theme and direction for presenting the
„right‟ product to retailers and consumers. In many companies merchandisers also present
new apparel lines to the marketing department in seasonal sales meetings, emphasizing
how to best sell the silent features of the line.
Price, need to establish the right price for the right product. The merchandisers must
consider the competition in the target market and the cost of producing each garment as
well as manufacturing overhead and general and administrative costs. The consumer is
the key to the target market equation but is not an actual part of the marketing mix. The
consumer is the target for all marketing and merchandising efforts and is therefore the
central focus of the as in figure 3.1