Production Planning & Merchandising

Southeast University
Department of Textile Engineering


Prepared By:

Prepared by : Mazadul Hasan sheshir
Saturday, December 28, 2013

Production Planning & Merchandising

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Study
On
Production Planning &
Merchandising



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Acknowledgement
For the successful execution of this report, first we would like to thanks to the
almighty. Next, with warm gratitude we would like to remember all of them whose
enthusiastic supports have contributed largely on the timely accomplishment of
my entire internship program.
We are pleased to get a fabulous opportunity to carry on our internship program
with one of the finest garment manufacturer of the country namely FCI situated in
Old DEPZ.We are very much grateful to Prof. Sayed Fakhrul Hassan, Chairman of
Textile dept. of Southeast University for making this arrangement in such a
garment of the country. We herewith thankfully remember the name Md.
Moniruzzaman (Deputy Manager) and Md. Habibur Rahman (Personnel), Azharul
Islam, General Manager (Marketing & Merchandising) Padma Polycotton who has
helped us attaining our internship in Garments sector and guided me by providing
necessary information and advices throughout this program.


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Introduction
Company profile

Padma poly cotton knit fabrics ltd.
• Situated at Tejgaon industrial area
• Year of established in 1995
• Main section
1. Knitting section
2. Dyeing & finishing section
3. Garments section( includes sewing, cutting, finishing unit)
• Major buyer: Europe & USA (S.oliver, Defacto etc.)



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FCI BD Ltd.
• Situated at Dhaka Export Processing Zone in Savar
• Year of Established 1996
1. Major section
2. Sewing section
3. Cutting section
4. Finishing section
• Major buyer: M&S, Zara, Nike and Alexon etc.



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Planning:
Planning is exercise of intelligent anticipation in order to establish how an objective
can be achieved, or a need fulfilled, in circumstances which are invariable
restrictive.
Planning is an act of prediction, the accuracy of which varies enormously
depending upon the kind of objective, kind of circumstances, the skill of the
planner and his techniques and chance.

There are three types of planning:
1.Production planning relating the qualities of sale.
2.Production planning relating to the method.
3.Production planning relating to time.


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Production

Production is the process by which goods and services are created. Production
systems combine materials, labors, and capital resources in an organized way with
the objective of producing some goods or service. Production system may occur in
factories, banks, stores, hospitals etc. In all instances, some input to the system is
being processed within the system to produce a goods or services as an output; we
are in fact dealing with the operations phases of any enterprise.

Objectives of Production Planning
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To determine capacity of all manufacturing departments and to plan systematically
coordinated
To translate orders received from sales department into orders on the works department and to
ensure steady plans of production activities.
To promote fuller utilization of plants.
To assist labor towards right and greater earnings.
To train staff in the effective performance of their duties


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Merchandising
Merchandising is a process through which products are planned, developed,
executed and presented to the buyer. 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.

Type of merchandising done in garment exports
•
•

Marketing merchandising.
Product merchandising.



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Merchandisers responsibility
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Product Development
Market and product Analysis
Selling the concept
Booking orders
Confirming Deliveries
Designing and Sampling
Costing
Mediating production and quality departments
Giving shipping instructions and following shipping,
Helping documentation department
Taking responsibility for inspections and
Following up the shipment.



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Background
Mainly we found this reports on production planning & merchandising•
•
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01. A study book about production planning -Mintu Sarker & Taslima Akter. (3rd
batch,SEU)
02. A study book about production planning and merchandising-pritam das &
Kamrul, 4thbatch, SEU
03. A Study on production planning and merchandizing in a garments industryMd. Mahfuzur Rahman Khan & Md. Kamrul Hasan Joarder, 5th Batch.SEU.
04. A Study on Production planning and Merchandising of Garments industry-6th
Batch.SEU

All the report is written by them following our topic on production planning &
merchandising


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Theirs Findings
• Flow chart of production planning
• Description of production
planning
• Procedure of production planning
• Garments export procedure
• Process of line balancing
• SMV calculation & analysis
• Sequence of product
development


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Company profile
Planning & Production Planning
Types of production planning
Object & procedure of production
planning
• Qualification & responsibilities of
a merchandiser
• Work study & method study
• Objects of their work


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Our Findings
Mainly we are focusing on merchandising in
details & work of a merchandiser in
production planning in every stage of garment
section.



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Methodology


Flow process of garments manufacturing:



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Description of Export procedure:


Pricing:
It is also called costing. Fabric cost, Accessories cost, CM cost, Overhead cost, Transportation
cost etc is included here
Space booking
Space booking is very important for production. While getting approval, space booking is must
for storing fabric and accessories
P.O. sent by buyer
Full meaning of P.O is purchase order. It is sent by buyer when order is confirmed. P.O contains
order no, date, supplier description, buyer name & address, factory name & address,
product description, packing description, terms & conditions & various instructions.
Master L/C sent by buyer
L/C means letter of credit. It is a very important document. Master L/C is sent by buyer and it is
made by bank. L/C contains all the payment & other terms
Making of T & A calendar
It means time & action calendar. In this calendar all the planning actions are done by which
works run to meet the delivery date.
Fabric & accessories booking:
Fabric & accessories are booked according to T & A calendar. It is done by merchandiser.


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BTB opening:
BTB means Back to back L/C. It is opened against the master L/C. For fabric & accessories booking it is
essential and it is done for security.
Fabric & trims in house:
Department charge check them if there is any damage of box & then
Fabric & trims are come to the store, store in of Textile Engineering
in house them.
Checking inventory & making inventory report:
Then inventory is checked again and make a report. This report goes to the commercial department &
merchandiser.
PP meeting:
PP meeting stands for pre-production meeting. It is done before bulk production of an order.
Following Persons are present in this meeting.
Merchandisers.
Production manager.
Cutting master.
Quality controller.
Production planning officer.
Production planning manager
Pattern checking & trial cutting:
After PP meeting pattern is checked again and trial cutting is done to check, the cutting is correct or
wrong.
Bulk cutting:
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Bulk cutting is done for bulk production. From here bulk production is start.


Numbering, sorting & bundling:
Cutting pieces are numbered, sorted & then bundled for easy production.
Production line set up:
It is also called line balancing. It is veryof Textile Engineeringproduction. The objectives
Department important for bulk
of line balancing are given below:
Higher productivity
Proper work flow
Quality product
Fair distribution of workers
Cost savings
In-time delivery to buyer
Increase efficiency etc.
Bulk Production:
It includes:
Sewing
Ironing
In-line inspection etc.




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Finishing:
After bulk production finishing is done.
Final inspection booking:
Booking is required for finalDepartment ofIn a inspection industry, time is very sensitive
inspection. Textile Engineering
matter. So before finale inspection one needs to book the inspection table for a
particular order.
Final inspection:
During final inspection, present 3rd party QC:
SGS
ITS
Moody
Bureau VERITAS etc.
IC (Inspection certificate):
The international inspection group gives a certificate of their inspection.
Truck loading & transport to the port:
Cargo Company takes the vessel to the port by truck or other.
Hand over the goods to the logistic firms:
They handover it to the logistic firm at port and after loading to the ship get the bill of
Saturday,
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lading. December 28, 2013





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• Merchandisers work in design section:

Results & discussion:
•

We have found that Bangladesh is lacking of quality fashion designers. Economy of
Bangladesh mostly depends on RMG sector but there is not sufficient opportunity
for good fashion designers. So there is good possibility of improving our industry if
we can improve our fashion as well as design sector.



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Production planning in pattern section:



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Merchandiser work in pattern section:
• Pattern master makes the garments pattern. Merchandiser only
checks that the pattern is according to buyer’s recommendation or
not. He/she send buyer information if any modification of pattern is
possible.
Result & discussion:
• Theoretical and practical section has a huge difference in pattern
section. Those we have learned in theoretically are not implemented
in this section directly; they use their own easy method to make a
pattern.


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Spreading:
• After ratio break down planning of spreading is done. In this planning
mainly the method of spreading is selected by which method
Department of such as normal,
spreading of fabric will be doneTextile Engineering one way, slitting,
zigzag etc.


• A sample of Spreading machine inspection of Padma poly cotton is given below

Result & discussion: Spreading quantity depends on buyer
requirements. In the above table we have seen that the variation of
spreading is different because there are different kinds of buyer.
Another reason is manual spreading is used in some tables. That’s
why the spreading lay quantity is varying.
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Cutting:
• Cutting plan is done here. How the cutting process will be run and quality will be
maintained discussed here. Some cutting plan is given below:


Result & discussion: In cutting section cutting pieces are varying for following reasons,
such as• Number of pieces.
• Number of layer.
• Cutting fault.
• Manual spreading.
• From above it is seen that table 1 & 3 cutting man keep consistency because they
are more professional than others. Other reason is fabric lay are manually spreaded
in table 2 & 4 and their cut pieces found much more faults.


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Merchandiser work in cutting section:
• Merchandiser does the ratio breakdown for marker for marker planning and then
he sends it to CAD section for producing an efficient marker. He helps to make
decision of fabric spreading. In cutting his main job is to help in making the flow
process of cutting. Sometimes when cutting supervisor cannot solve any problem
then a merchandiser try to solve it.

• Though it is the duty of merchandiser to make ratio breakdown sheet, we have
seen it is done by line in charge practically. In case of spreading manual & normal
spreading is done. Manual spreading is done because spreading machine is very
costly & manual spreading method is appropriate for Bangladesh. Every marker is
checked before starting a cutting in this factory and sometimes it is found that
there is measurement mistake in marker, and then is fixed manually. It is the fault
of CAD operator. They should be well trained.


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Production planning in sewing section:
•


In sewing section before starting production some planning is done. This planning includes
line balancing, No of machine required for each part, No of operator, planning of inspection.
When to start, production per day, and fabric & accessories arrival from store etc is
discussed here.



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Merchandiser work in sewing section: of Textile Engineering
Department
 First of all in sewing section merchandiser do the line balancing to assure maximum
production in short time. He/she selects the machines & number of machines required for
on order. If buyer gives the S.M.V sheet, then merchandiser checks if it is appropriate for the
factory. If it is not appropriate, then merchandiser bargains with buyer to modify S.M.V. It’s
his duty to reduce S.M.V for factory production, because more the S.M.V lowers, higher the
production.



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• SMV:
SMV stands for standard minute value. It is very important for
garments especially in production section. It is mainly done to
control the speed of production.
• SMV Calculation:
Normal Time: Average observed time performance rating.
SMV = Basic time + (Allowances Basic time)
= Basic time (1 +Allowances Time)
Target =


Efficiency


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Planning in store section:
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Store section is also very important for factory as cutting, sewing and like other section.

If improper planning is done for Store section then followings can be occurred:
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Less material (Accessories/Trims/Fabric) can be stored (If not counted properly).
Quality of stored materials may not be correct (If inspection is done incorrectly).
Stored materials can be damaged due to improper maintenance (Improper
Temperature/Dust/faulty materials control).
Materials can be stoles if security is not maintained correctly.

Merchandiser work in Store section:
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Merchandiser is responsible to book fabric and accessories from other supplier and he checks the
arrival of fabric and accessories in due time. He will be responsible it goods are not come in
correct time.

•

In store section we have seen how accessories come, inspected and in house them. Unfortunately
there was no supply of fabric while we were in fabric sector. In fabric sector we have seen the
quality inspection process of fabric in 4 point system.


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•

Production planning in finishing section:

•

Merchandiser work in finishing section:
In finishing section merchandiser helps to do the planning of a particular order and sometimes his duty
is to come in finishing section to check that finishing is running in correct or faulty method.

This is the finale section before dispatching goods to ship. Outlook is a great factor in RMG sector. If all
the quality is good but finishing is faulty then customer will not pay attention to it, so buyer will reject
the goods before shipment. So it is wise to do as buyer requirement & it is better if it is possible to
modify the requirement to increase outlook quality, but for this one must take advice from buyer.


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•

Merchandising section:



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Confirmation & T & AC Make
Fit sample confirmation & T & AC
Make
Fit sample Approval
Lab-dip submission
Lab-dip approval
Receiving the Master L/C
Yarn/Fabric/Trim Booking
BTB L/C opening for Booking
Accessories/Trims
PP sample submission
PP sample approval
Trims submission
Trims approval


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Yarn/Fabric/Trims in house
Inventory of received Yarn/Fabric/Tri
Bulk Fabric/Test reports submission
Bulk Fabric/Test reports approval
Bulk production
Test of production sample
Test sample approval
Final Inspection
Ex-Factory date
Cut-off d
Receipt of Bill of Lading


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Objective of the study
Broad objective:
• The broad objective of this report is to analyze the entire departmental work process of
Garments (woven/knit) industry and addressing related departmental shortcomings in
light of marketing.
Specific objectives:
• To address the broad objectives, there should have some specific objectives. These are:
• To find out how all departments of Garments factory operates.
• To analyze critically all aspects of the departmental work procedures.
• To analyze how all departments coordinate among themselves.
• To find out major existing and potential controllable and uncontrollable shortcomings of
all departments and their effects on overall marketing of the organization.
• To find ways to overcome the shortcomings in light of marketing tools and concepts.
• To represent a brief overview of RMG sector.


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Limitations of the study
• Major limitations of this study are outlined below:
• All personnel are always very much busy and work under extreme
pressure for their nature of job and huge volume of the business. Thus
they couldn’t give me sufficient time.
• Since all their buyers are located outside of the country therefore it was
not possible to measure their image from customers’ point of view.
• Due to time and cost restriction, the study is concentrated in selected
major departments.
• The study has been conducted based on observing and interview of the
employees.
• Limited sample size for interview.



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Findings:
•

Production planning & merchandising work is huge task. We try our best to work as
much as possible. Mainly we observed the garments section in the factory. In
garments section we observed mainly the marker, spreading, cutting, merchandising
& finishing section. We have found that where the automatic production process is
used there is much production than manual production process. Skill worker is one of
the main issues to effective production process. Administrative tools also play a vital
role for effective production planning.

Is further work is necessary:
Production planning & merchandising is a lot of work, we cannot touch the all of
thing because of short time. There are lots of things which are studying more on
production planning & merchandising.



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References:

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[1]-----http://padma-group.com/padmapolycotton/index.php
[2]-----http://www.fcibd.com/services.php
[3]-----http://www.fcibd.com/products.php
[4]-----Production planning & control (pdf)
[5]-----Practice of garments Merchandising & Management by Engr
Md. Faruk Hosen
[6]-----From class sheet
[7]----- Practice of garments Merchandising & Management by Engr
Md. Faruk Hosen
[8]----- http://www.textileschools.com

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Production Planning & Merchandising

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