Inplant Training in Kandhan Knitss

CHAPTER-I INTRODUCTION 1.1 INDIAN TEXTILE INDUSTRY Indian textile industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further the textile industry of India also contributes nearly 14% of the total industrial production of the economy. It also contributes around 4% to the GDP of the country. Indian textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry but also opens up scopes for the other ancillary sectors. Indian textile industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.Indian textile industry can be divided into several segments, some of which can be listed as below 1. Cotton Textiles 2. Silk Textiles 3. Woolen Textiles 4. Readymade Textiles 5. Hand-Crafts Textiles 6. Jute and Coir Indian textile industry is one of the leading in the world. Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012.The textile export of the country was around US$19.14 billion in the year 2006-2007, which saw a stiff raise to reach US$22.13 in 2007-2008.The share of the export is expected to increase from 4% to 7% within 2012.

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Though during the year 2008-09, the industry had to face adverse agroclimatic conditions, it succeeded in producing 290 lakhs bales of cotton comparing to 315 lakhs bales last year, yet managed to retain its position as world’s second highest cotton producer. The initiation and development of globalization and Indian Textile industry took place simultaneously in the 1990s.The Indian textile industry, until the economic liberalization of Indian economy was predominantly an unorganized industry. The Indian industry is one the largest textile industries in the world and India earns about 27% of the foreign exchange from exports of textiles and its related products. The initiation and its subsequent development of globalization and Indian textile industry respectively, were effected by the Ministry of Textiles under the Government of India. The most significant step amongst them was the introduction of “The National Textile Policy 2000”. This policy envisaged to address the following issues 1. Increased global competition in the past 2005 trade regime under WTO 2. Huge import volume of cheap textiles from other Asian neighbors 3. High production cost with respect to other Asian competitors 4. Use of outdated manufacturing technology 5. Poor supply chain management and huge transit cost 6. Huge unorganized and decentralized sector Further this policy aims at increasing the foreign exchange earnings to the tune of US $50 billion by the end of the year 2010.it includes rational projections for the overall development and promotion of all the sectors involved directly or indirectly with the Indian textile industry. The globalization of the Indian textile sector was the cumulative effect of the following factors.

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1. Huge textile production capacity 2. Efficient multi-fiber raw material manufacturing capacity 3. Large pool of skilled and cheap work force 4. Entrepreneurial skills 5. Huge export potential 6. Large domestic market 7. Very low import content The Indian textile industry consists of the following sectors 1. Man-made fiber 2. Filament Yarn Industry 3. Cotton Textile industry 4. Jute Industry 5. Silk and Silk Textile Industry 6. Wool and Woolen Industry 7. Power Loom Industry An approximate number of textile manufacturing companies operating in India are given below 1. Badges, Emblems ribbons and allied products-175 2. Bed covers, Curtains, Cushions and other draperies-2471 3. Carpets and rugs-270 4. Embroidery and embroidered garments-848 5. Yarns and threads-1200 6. Jute Products-337 7. Kids apparel and Garments-1052Ladies apparel and garments - 2934 8. Ladies apparel and Garments-2934 3

9. Men’s apparel and Garments-2940 10. Textile chemicals, dyeing and finishing chemicals-239

1.2 INDIA’S POSITION IN GLOBAL TEXTILES AND CLOTHING INDUSTRY • India's position in the World Textiles Economy Second largest Producer of raw cotton. • Second largest producer of cotton yarn. • Second largest producer of cellulosic fiber/yarn. • Second largest producer of silk. • Fourth largest producer of synthetic fiber/yarn. • Largest producer of jute.

1.3 HISTORY OF INDIAN TEXTILE INDUSTRY The history of textiles in India dates back to nearly five thousand years to the days of the Harappan civilization. Evidences that India has been trading silk in return for spices from the 2nd century have been found. This shows that textiles are an industry which has existed for centuries in our country. Recently there has been a sizeable increase in the demand for Indian textiles in the market. India is fast emerging as a competitor to China in textile exports. The Government of India has also realized this fact and lowered the customs duty and reduced the restrictions on the imported textile

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machinery. The intention of the government’s move is to enable the Indian producers to compete in the world market with high quality products. The results of the government’s move can be visible as Indian companies like Arvind Mills, Mafatlal, Grasim; Reliance Industries have become prominent players in the world. The Indian textile industry is the second largest in the world-second only to China. The other competing countries are Korea and Taiwan. Indian Textile constitutes 35% of the total exports of our country. The history of apparel and textiles in India dates back to the use of mordant dyes and printing blocks around 3000 BC. The foundations of the India's textile trade with other countries started as early as the second century BC. A hoard of block printed and resists dyed fabrics, primarily of Gujarati origin, discovered in the tombs of Fostat, Egypt, are the proof of large scale Indian export of cotton textiles to the Egypt in medieval periods.

STRENGTHS 1. Indian Textile Industry is an Independent & Self-Reliant industry 2. Abundant Raw Material availability that helps industry to control costs and reduces the lead-time across the operation 3. Availability of Low Cost and Skilled Manpower provides competitive advantage to industry 4. Availability of large varieties of cotton fiber and has a fast growing synthetic fiber industry 5. India has great advantage in Spinning Sector and has a presence in all process of operation and value chain 6. India is one of the largest exporters of Yarn in international market and contributes around 25% share of the global trade in Cotton Yarn 7. The Apparel Industry is one of largest foreign revenue contributor and holds 12% of the country’s total export 8. Industry has large and diversified segments that provide wide variety of products 5

9. Growing Economy and Potential Domestic and International Market 10. Industry has Manufacturing Flexibility that helps to increase the productivity

WEAKNESSES 1. Indian Textile Industry is highly Fragmented Industry 2. Industry is highly dependent on Cotton 3. Lower Productivity in various segments 4. There is Declining in Mill Segment 5. Lack of Technological Development that affect the productivity and other activities in whole value chain 6. Unfavorable labor Laws 7. Lacking to generate Economies of Scale 8. Higher Indirect Taxes, Power and Interest Rates

OPPORTUNITIES 1. Growth rate of Domestic Textile Industry is 6-8% per annum 2. Large, Potential Domestic and International Market 3. Product development and Diversification to cater global needs 4. Elimination of Quota Restriction leads to greater Market Development 5. Market is gradually shifting towards Branded Readymade Garment 6. Increased Disposable Income and Purchasing Power of Indian Customer opens New Market Development 7. Emerging Retail Industry and Malls provide huge opportunities for the Apparel, Handicraft and other segments of the industry 8. Greater Investment and FDI opportunities are available

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THREATS 1. Competition from other developing countries, especially China 2. Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world 3. Elimination of Quota system will lead to fluctuations in Export Demand 4. Threat for Traditional Market for Power loom and Handloom Products and forcing them for product diversification 5. Geographical Disadvantages 6. International labor and Environmental Laws 7. To balance the demand and supply 8. To make balance between price and quality

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CHAPTER-II COMPANY PROFILE 2.1 ABOUT COMPANY Kandhan knitss is a vertically integrated One Star Export House specializing in manufacturing and exporting of T-shirts, Sweat Shirts, Pyjamas and Night wear for men, women and children. Incorporated in the year 2003 and run by a professional and enterprising management. Kandhan Knitss exports quality knit wears to different provinces across Europe. A Highly competitive entity, with strengths in print work and embroidery, Kandhan Knitss employs 500 managerial and skilled labours and produces 1,50,000 pieces of knitwear per month. An 8.5 USD million worth company, Kandhan Knitss is furnished with imported high-tech machinery and is endorsed with the ISO 9000:2001 certification.

2.2 MANAGEMENT Two enterprising businessmen with close to four decades of combined experience in textile industry manage Kandhan Knitss. Mr.P.Kanakaraj and Mr.P.Dhanapal hold key positions as partner and CEO of the company respectively. Equipping the best technologies and infrastructural facilities and continuously upgrading the quality standards, the management is taking Kandhan Knitss to new heights of quality and recognition.

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2.3 VISION With the vision “To become a premier league player in the global apparel industry”, Kandhan Knitss offers its clients high quality knitwear to their specifications. Delivering the products within the scheduled time without compromising on quality helps Kandhan Knitss gain the confidence and appreciation of clients across the Europe.

2.4 INFRASTRUCTURE Kandhan Knitss spread over 1, 00,000 square feet of excellent infrastructure; Kandhan Knitss manufactures excellent quality Knitwear that is well received across numerous European countries. The systematically planned manufacturing unit enables Kandhan Knitss with optimum production capacity and quality outputs. The production process strives continually to be innovative and creative to bring novelity in fabrics with latest printing and embroidery techniques. Kandhan Knitss has dedicated product development and garment design teams for each product group and in some cases for individual customers.

2.5 MACHINERY The most modern knitting, printing and embroidery machines furnish the production facility of Kandhan Knitss. Imported from renowned manufactures, these machines facilitate the company to provide clients their precise knitwear requirements with the requisite quality criteria. 400 Sewing machines, 25 knitting machines, Compactors, 6 Embroidery machines, 8 Printing machines, 10 Flat knit machines, 2 spreading machines(Gerber),

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Sequins, Carding Embroidery machines and full electronic jacquard wrapper machines allow Kandhan Knitss to produce 1,50,000 pieces of knitwear per month.

2.6 PRODUCTS A Certified quality export house, Kandhan Knitss manufactures and exports extensive knitwear for Men, Women and Children. Using 100% quality cotton, the product range of Kandhan Knitss include: • T Shirts & Polo Shirts • Sweat Shirts • Casual Wear • Work Wear • Pyjamas • Beach Sets • Leggings • Night Dresses The products are of highest quality standards and conform to the specific requirements of each client.

2.7 PROCESS There are three processes to be carries out in the company. The processes are as follows • Fabric Production • Embellishments • Garment Production

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2.8 FABRIC PRODUCTION A well-known entity for knitted fabrics Kandhan Knitss carries out the entire process of knitting to finishing in-house. For woven fabrics Kandhan Knitss has strategic relationship with prominent mills both in Turkey and overseas. Kandhan Knitss has a technical research and development team to find the latest trends in the market. Team members work on the latest available techniques in the fiber, yarn, knitting, dyeing and finishing sectors and find the best efficient ways for the applications in-house. Kandhan Knitss provides its customers the best available fabrics that satisfy their needs by maintaining a good physical and color performance. Also with the restrictions the company applies in using certain dyes and the treatment facilities, its fabric is harmless to skin and the environment.

2.9 EMBELLISHMENTS Chemicals and materials that use in the embellishment processes are selected carefully to maintain durability of the products. Kandhan Knitss adds value to the process with a wide variety of embellishment techniques and designs such as placement and frequency printing, embroidery and badges as adding fashionable value to the garment is imperative for the apparel business. The chemicals that used at Kandhan Knitss do not have risk to health nor the environment during their manufacture, use or disposal. The clients gets benefit from the latest washing and garment techniques that Kandhan Knitss provides through well-equipped and experienced partner companies. Having in-house facilities for printing and embroidery enables the company with faster

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response to its customers. Kandhan Knitss either provides graphic design resources to its clients or they may send their own art work for development.

2.10 GARMENT PRODUCTION With the modern purpose built factories, Kandhan Knitss aims to satisfy its customer by assuring that the products and services meet the contractual requirements of quality and safety and that those products are delivered on time. All levels of production are monitored for prevention of faults rather than detection, starting from raw materials to finished goods which are ready for dispatch. The company’s contract with TUV-Sud lab ensures both quality and safety standards are consistently met. The biggest asset of Kandhan Knitss is the skills and attributes of its highly motivated employees. The company supports this with continuous training, correct tools and equipments to complete the job accurately in a healthy and safety environment which is second to none. Kandhan Knitss believes that “commitment at all levels to getting it right first time” is essential to the successful implementation of the policies. Each operator is set with individual standards to work and inline quality control monitors each operation against these agreed standards.

2.11 QUALITY Using state-of –the –art technology for every process, Kandhan Knitss applies internationally defined knitwear production processes at its facility. An ISO 9000:2001 certified company, quality procedures at Kandhan Knitss cover manufacturing, packing & storing and delivery of the finished goods. The quality monitoring processes in place are recognized to be of industry leader standard with the strongest emphasis being on prevention rather than cure. The results of the stringent and ever improving procedure has

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resulted in low return manufacturer [RTM] rate at below 0.5% target with very high Acceptable Quality Level [AQL] pass rates. Quality tests are done exclusively by only TUV sub lad to get precise report on the fabric. Tests are performed as per buyer requirements such as ISO, ASTM[American Society For Testing and Materials] etc.., Working with TQM[Total Quality Management] principles Kandhan Knitss equips each of its personnel with the knowledge and resources required to successfully contribute towards the on-going search for excellence.

2.12 PATRONS The list of satisfies clients is a testimony to Kandhan Knitss commitment towards customer satisfaction. The repeat orders and continual assignments for the existing clients emphasize the dedication and professionalism of Kandhan Knitss. Catering to some of the most well-known brands across Europe, the company’s clients include  GEMO FRANCE  MONOPRIX FRANCE  OKAIDI FRANCE  BONMARCHE UK  TESCO UK  DEBENHAMS UK  ATLANTIC POLAND  TEMA TURKEY  S.OLIVER GERMANY

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CHAPTER-III ORGANISATION CHART

EDP

ACCOUNTS

HUMAN RESOURCE

14

DOCUMENTATION

PURCHASE

CHAPTER-IV HUMAN RESOURCE DEPARTMENT 4.1 HUMAN RESOURCE The man is ultimate resources of the organization because they think, speak, so that utilization of this resource is very critical. Every success of organization is depending on efficient and effective man power. HR starts when a man enters in the organization and its end, when he leaves the organization. HR deals with the human dimension. Success or failure of an organization depends on the effective coordination of the resources such as money, material, machinery and men. Among these, the role and operation of men is the most complex. All the activities of an organization are initiated and completed by the persons who make up the organization. Therefore, people are the most significant resources of any organization. HRM is known by different names – Personal management, personal administration, man power management.

4.2 CONTRIBUTION OF HRM TO THE ORGANISATION 1.Helping the organization to search its goal 2.Employing the skills and the activities of the workforce efficiently 3.Providing the organization with well trained and well-motivated employee 4 Increasing to the fullest the employee’s job satisfaction 5.Developing and maintaining quality of work life 6.Communication 7.Helping to other department and function HRM includes the very Interesting phenomena that is HRD. Human resource development (HRD) is phenomenal for the manufacturing and service industry. HRD

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deals with up gradation of skills for labours and executives, planning and allocation of work, monitoring and assessment of performance. One of the most important tasks is upgrading the skills and knowledge of the human resource from time to time in tandem with the development of technology and trade.

H R M

HR Planning Job Analysis Recruitment and Selection Training and Development Compensation Performance Appraisal Communication Conflict solution Personal audit Organizational Development Relationship Career Planning and Development

4.3 HR DEPARTMENT STAFFS VINOTH KUMAR.R [HR MANAGER] SUBRAMANIAN [HR ASSISTANT] GOVINDASAMY [HR ASSISTANT] JAYABALAN [TIME KEEPER] MALATHY [RECEPTIONIST] SIVAKUMAR [ELECTRICIAN] RAMESH KUMAR [ELECTRICIAN] PATHMAKUMAR [DATA ENTRY OPERATOR]

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OUTPUT 1. Productivity 2. Improved Worklife 3. Satisfaction and Motivation

4.4 HRM IN TEXTILE INDUSTRY Textile is industry oriented field where lots of processes are there to carry out raw material\fibers to finished garment. In this we have required technical skillful and motivated peoples. For textile, a little bit differences in the scope, approach in HR concept, because here peoples think differently, expect differently. In textile, environment is different as compare to other origination or industry, here more interaction to be carryout around 80% manager spend time in handling of human resources. A very common problem always exist in every textile oriented that is conflict ( grievance) in intra department or in worker and management, so this HR(HRM) play as a tool to resoles this problem efficiently .HRM increase the communication ,coordination and involvement so that chances of misunderstanding will be minimum. Even in organizations with educated and experienced staff, due to the lack of cooperation on part of the management, the department cannot carry out its functions.

4.5 EMPLOYEE DETAILS IN KANDHAN KNITSS Total number of employees

= 500

Male employees

= 327

Female employees

= 173

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S.NO

DESIGNATION

TOTAL MEMBERS

1

MANAGING PARTNER

1

2

CEO

1

3

MERCHANDISERS

66

4

EDP

2

5

FINANCE DEPARTMENT

8

6

HRM DEPARTMENT

9

7

DOCUMENTATION

4

8

PURCHASE

3

9

ALL OTHER EMPLOYEES

406

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TOTAL = 500

4.6 TRAINING PROGRAMS The training programs are conducted in Kandhan Knitss at appropriate time. Fresher are given the job specification and full details about the job and on the job training are given to the employees. There is a separate trainee is appointed to conduct the training programs effectively.

4.7 PERFORMANCE EVALUATION The performance of the employees are calculated on the basis of the total production of the individual , the quality of the products, delivery time, skills and knowledge acquired, behavior with other employees etc..,. Based on these factors the performance can be evaluated and the measures are given.

4.8 DUTIES OF HR DEPARTMENT  Payroll calculation  Attendance calculation  Providing safety measures  Induction and Placement  Training and Development  Motivation  Performance Appraisal 19

4.9 OTHER FACILITIES TO EMPLOYEES  Drinking water  Urinal and toilet  Two time Tea Breaks Average age of the employees is 28 years Most of the employees are coming from the nearest areas Bus facility is available for the employees

4.10 REGISTERING THE PRESENCE OF EMPLOYEES The employees should register their presence through scratching system. Every employee is provided an Identification card and a bar coded number is provided in the back side of the ID card. The employees should scratch the Id card when they entering into the work place and their presence is automatically registered in the system. A time Keeper is appointed so that he calculates the timings of the employees.

4.11 WORK PLACE CONDITIONS The employees are working in a good environment so that their safety is ensured to the maximum. The safety measures provided by Kandhan Knitss are  Safety nose cover  Fire extinguishers  Emergency exists

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4.12 JOB RESPONSIBILITIES AND AUTHORITIES NAME

: MR.NINOTHKUMAR.R

DESIGNATION : PERSONAL AND HR MANAGER DEPARTMENT : PERSONAL AND HR

RESPONSIBILITY AND AUTHORITY 1. Staff In & Out time monitoring, worker strength and monitoring newly joined persons 2. Production department (cutting to packing) day wise status checking and forwading to CEO attention 3. Vehicle trip checking and forwarded to same for CEO attention 4. Staff monthly attendance details checking and forwading tocashier 5. Staff P.F, E.S.I statement checking and salary details checking and worker pay bill checking 6. Monthly P.F and E.S.I calculation verifying and arranging to send the same to P.F office 7. Monthly worker pay-slip checking and signing 8. Worker monthly OT calculation and paid vouchers verification 9. ISO and various department meetings arranging and ISO procedure implementation 10. In other work related to statutory compliance will be followed immediately 11. Buyer code of conduct followed and implemented 12. Worker meeting, social compliance meeting to be conducted periodically

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CHAPTER-V PRODUCTION DEPARTMENT 5.1 PRODUCTION PROCESS Kandhan Knitss produces 1, 50,000 pieces of knitwear per month. It includes Tshirts, Sweat Shirts, Pyjamas and Night wear. Kandhan Knitss produces quality knitwear so that the clients make a regular purchase from the company. Kandhan Knitss exports the products mainly to the European countries. The clients give orders and the company has to purchase all the raw materials and other materials required for the production process. The main three production process is • Fabric Production

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• Embellishments • Garment Production

5.2 FABRIC PRODUCTION A well-known entity for knitted fabrics Kandhan Knitss carries out the entire process of knitting to finishing in-house. For woven fabrics Kandhan Knitss has strategic relationship with prominent mills both in Turkey and overseas. Kandhan Knitss has a technical research and development team to find the latest trends in the market. Team members work on the latest available techniques in the fiber, yarn, knitting, dyeing and finishing sectors and find the best efficient ways for the applications in-house.

Kandhan Knitss provides its customers the best available fabrics that satisfy their needs by maintaining a good physical and color performance. Also with the restrictions the company applies in using certain dyes and the treatment facilities, its fabric is harmless to skin and the environment.

5.3 RAW MATERIALS USED FOR FABRIC PRODUCTION  Cotton  Fur  Flax [linnen]  Jute  Leather and animal skins 23

 Polyester synthetic fibers  Rubber  Silk  Straw  Wool Fabric construction involves the conversion of yarns, and sometimes fibers, into a fabric having characteristics determined by the materials and methods employed. Most fabrics are presently produced by some method of interlacing, such as weaving or knitting. Weaving, currently the major method of fabric production includes the basic weaves, plain or tabby, twill, and satin, and the fancy weaves, including pile, Jacquard, dobby, and gauze. Knitted fabrics are rapidly increasing in importance and include weft types and the warp types, Rachel and tricot. Other interlaced fabrics include net, lace, and braid.

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5.4 EMBELLISHMENTS Embellishing comes from the word embellish which is a meaning to make beautiful, this making beautiful can be carried out through decoration or ornamentation. In literature it can be referred to as an exaggeration or the addition of fictitious or ornamental details to a true account of facts. Chemicals and materials that use in the embellishment processes are selected carefully to maintain durability of the products. Kandhan Knitss adds value to the process with a wide variety of embellishment techniques and designs such as placement and frequency printing, embroidery and badges as adding fashionable value to the garment is imperative for the apparel business. The chemicals that used at Kandhan Knitss do not have risk to health nor the environment during their manufacture, use or disposal.

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5.5 RAW MATERIALS USED FOR EMBELLISHMENTS  Glass beads  Acrylic beads  Sea shells  Natural stones  Wooden beads  Metal beads

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The raw materials are purchased from the market in and around Tirupur. The research team search for the quality raw materials and also at low cost. The process is carried out inside the company. There is no outsourcing by the company. Fabric embellishments include several categories of arts and crafts. The kind of decorative embellishment you choose will depend upon the final look you want to achieve. Almost every type of fabric can be embellished, though the methods will vary to suit the nature of the weave. Fabrics can be decorated with crochet, embroidery, fabric paints or fabric appliques. Bead work is a popular embellishment that is often worked into cross stitch and crochet work and sewn onto fabric. Some appliques are transferred with a hot iron and others are sewn in. Adding sequins or buttons to clothing is a matter of a few stitches and can be easily done even by beginners.

5.6 GARMENT PRODUCTION With the modern purpose built factories, Kandhan Knitss aims to satisfy its customer by assuring that the products and services meet the contractual requirements of quality and safety and that those products are delivered on time. All levels of production are monitored for prevention of faults rather than detection, starting from raw materials to finished goods which are ready for dispatch. The company’s contract with TUV-Sud lab ensures both quality and safety standards are consistently met.

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Garment production planning involves creating a schedule for the mass production of clothing. Producing garments requires a lot of coordination and schedule management. Every production requires different elements, depending on how large the production is and what is being produced. The time frame for a production depends on the elements of the production, but generally speaking, planning for the production is the same.

5.7 JOB RESPONSIBILITIES AND AUTHORITIES NAME

: MOORTHY.P

DESIGNATION: PRODUCTION MANAGER DEPARTMENT: PRODUCTION

RESPONSIBILITY AND AUTHORITY 1. Receive Order sheet from concern merchandiser 2. Receive the samples pieces and further comments for bulk production from concern merchandiser 3. Order planning 4. Get the Trim details from the Accessories Department 5. Give the cutting quantity to Cutting Department

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6. Follow up with Printing & Embroidery Departments 7. Placement of the section for production 8. Coordinate with final inspection and observes what kind of mistakes arise during the production 9. Checking and Packing monitoring 10. Reporting to management daily production status

CHAPTER-VI MERCHANDISING DEPARTMENT Normally the garment companies do not require marketing department. Because the company manufactures the goods and services on a contract basis. It is also termed as contract manufacturing. The company gets orders from the foreign companies and they produce the goods and services according to their needs. Before giving the order the foreign companies appoint third party to audit the company and the industry to check whether there is good environment for the production process. The third party audits all 29

the departments and he/she should submit a report to the client companies. Based on the report submitted by the third party assigned by the client, the order can be placed. There are no marketing persons required for the company. The products after it is manufactured it is exported to the clients who gives the order. The third party auditing can be done at any time and the auditing process takes some time. Kandhan Knitss do not supply their products and services to the local customers. There are 2 types of merchandisers in export houses - buyer and production merchandisers. Buyer merchandisers act as a link between the buyer and the manufacturer. They have the responsibility of ensuring that the product is developed as per the requirements of the buyer so in between they have the responsibility of sourcing, sampling and communication with the buyer. The production merchants on the other hand are a link between production and buyer merchants. They have the responsibility of ensuring that the production goes as per the schedule and as per the requirements.

6.1 THE CANDIDATE RESPONSIBILITIES •

Will have to work for Merchandising, Sourcing, Vendor Development, Independently. Handling of Buyers.

•

Would be independently taking care of buyers' account, correspondence, interaction with buyers/buying agencies, costing, submission of samples, ensuring adherence of buyer’s instruction.

•

Client Co-ordination.

•

Will have to deal with all in house departments.

•

Candidate must have to maintain planning and management of department.

A garment export unit generally has many departments like stores, cutting, production, packing, checking etc., in which Merchandising department a linking device 30

of all. The job of a merchandiser is to coordinate with the entire department in the office as well as the customers. Merchandiser meets the buyers and collects the details of their requirements etc., to develop the relationship with the customer. A spec sheet (specification sheet) of the garment with sketch, measurement (will be mentioned before or after wash measurements.) and description is received from the buyer with or without sample .A general format of the spec sheet contains the sketch of the garment on the left side and the measurement on the right side. Descriptions of the stitching method, placement and design of embroidery or printing, additional accessories, color and type of buttons, threads etc. are mentioned at the back side. Additional sheets are added if the garment had more detailed work to do. Wash care label details are mentioned. Type, size, color and shape of the buttons are given. Placement of labels, prints, embroidery is given. Packing instructions are also given in this sheet which includes type, color size of the carton, marks and numbers to be printed on it, poly bags size and details printed on it, clips ,boards, tissue papers, required fold. Detailed study is made from the spec sheet and the raw materials required for sample making is ordered by the merchandiser who includes fabric, thread, buttons, zips, labels, etc., the color and quality of the things ordered is approved by the merchandiser and also he should contact printing unit, dyeing unit, embroidery unit to make samples of printing, dyeing, embroidery respectively. This is also approved by the merchandiser. Sometimes garments will be dyed after stitching, care should be taken while ordering raw materials for this, since the accessories should not catch dying color. Also the thread used to stitch these garments must choosy, depending upon the buyers’ request whether to get the dying color or not. Ready to dye thread should be used if the thread should be dyed after

stitching.

Sample pieces are made and sent to the buyer for approval. The corrected 31

samples are made and sent if the buyer required the same. After the sample is approved by the buyer or even before that, costing sheet is prepared by the Merchandiser. In costing sheet, the price of the fabric, accessories, prints etc per garment is listed and the price is fixed by adding margin. This cost is got approved from the Manager or the persons concerned and quoted to the buyer. Purchase order is received from the buyer which includes • PO no/date • Buyer/Consignee • Garment

no

• Measurement • L/C date • Last date within which shipment to be reach the destination. • Sign and Seal • Order validity date After receiving PO from the buyer merchandiser issues PO for the fabric unit, buttons, thread, dyeing unit, printing, embroidery and other raw materials. These raw materials’ are checked and color, quality and size approved by the merchandiser. After discussing with the production manager, Work Order is issued to all the departments by merchandiser along with the trim sheet. Work order consists of order no and description of the order. Trim sheet is a sheet in which the sample piece of fabric and accessories are stuck and distributed to the entire department for them to be aware of trims used for a certain order. Approved sample piece is sent along with this work order to the cutting department first from where it passes to all the departments the raw materials pass through.

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The bulk fabric is passed through the cutting dept., stitching dept., washing or dyeing unit, and then the packing department. As per the requirement printing or embroidery is done after stitching or cutting. In packing department merchandiser checks and approves a piece for the type of packing and the packing materials. After packing in the individuals packages, they are packed in the cartons. Number of pieces to be packed and the marks and numbers to be printed on the carton is also instructed by the merchandiser to them. A packing list is prepared by the Merchandiser with all the packing details mentioned in it and given to the Packing department. A quality checker assigned on behalf of buyer checks and approves the garments, after which they are shipped.

6.2 MANAGING ORDER ROUTE CARD AND PRODUCTION TIME TABLE Merchandiser has to manage every single production schedule and order route card that helps to follow-up the execution in the planned way. It is expected to be acknowledged of the various descriptions like: design, no. of modules, and no. of operators, how many processes, and date of dispatch, quantity, output capacity, and deadlines in the schedules. The sub-ordinates are normally assigned to follow-up with execution of the plan. Merchandiser plans the activities depending on the essentials or non-essentials, and top priority are given to the most essential tasks. This is customary that the essential activities are handled personally or with the support of junior merchandisers/sub-ordinates. In a "daily schedule", merchandiser has to carry-out and categorize which is the most significant and urgent task. The activity that has to be focused with full attention to sweep-off non-essential activities and have to be to be corrected by prioritizing to meet the deadlines. 33

6.3 USING ROUTE CARD TO RESCHEDULE ACTIVITIES To get updated on the current status on the order, the route cards should be utilized. The latest status can be fed into the computers. In case, the buyer ask for the goods prior to the deadline, then merchandiser has to reorganize the schedules to accomplish tasks, output capacity, no. of pieces to be produced daily, substitute arrangements, time availability, supply time, scheduling critical ratio, etc.

6.4 SUBMITTING PRE-PRODUCTION SAMPLES The pre-production samples should be provided on time to the concerned buyers. Quality of the sample must be verified. If required, revised samples should be made available to the buyers. Merchandiser should adjust to the required changes demanded by the buyer. The execution of bulk orders should be made only after samples are approved by the buyer. In-process inspection denote between any tasks in order-execution. In case of nonconformation, it is better to focus on the concerns of quality. Merchandisers that work on complete orders have to check deviation to the production teams so that any amendments can be done to avoid the non-conformities.

6.5 SOLVING SHORTAGE PROBLEM The merchandiser should know about the dearth of any commodity such as fabric, yarn, etc... From the beginning. Actions should be taken immediately to arrange required materials, after discovering the shortage. It is expected that the merchandisers should verify quality of the goods prior to execution of the order. If the material is found unavailable, the superior should be informed about the concern.

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CHAPTER-VII DOCUMENTATION DEPARTMENT The export process is made more complex by the wide variety of documents that the exporter needs to complete to ensure that the order reaches its destination quickly, safely and without problems. These documents range include  Bills of entry,  Foreign exchange documents,

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 Export permits,  Proforma and commercial invoices,  Certificates of origin and health, and  Pre-shipment inspection documents  The letter of credit and the bill of lading,  The airway bill or the freight transit order.

Most exporters rely on an international freight forwarder to handle the export documentation because of the multitude of documentary requirements involved in physically exporting goods and it is strongly recommended that you also make use of a freight forwarder to help you work your way through the maze of documentation. Trade overseas needs the support of export documents. Operations with foreign countries are made very complex, the sellers must explain what they are selling and the buyers must know what they are buying. For that reason, we use the following export documents  Bills,  Notes and weight packing.  Letters of credit Exporters run a series of risks when venturing into new lands. First of all, they risk not being paid by the importer in the foreign country. Secondly, if they do not know the political and economic situation of the country they are exporting to, they risk losing their money. Another risk they take is related to the exchange rates. Export documents exist to relieve these risks

7.1 THE BENEFITS OF DOCUMENTATION 36

Documentation is a key means of conveying information from one person or company to another, and also serves as permanent proof of tasks and actions undertaken throughout the export process. Documentation is not only required for your own business purposes and that of your business partner, but also to satisfy the customs authorities in both countries and to facilite the transportation of and payment for goods sold. One value of documentation is that copies can be made and shared with the parties involved in the export process (although you should always ensure that you make identical copies from an agreed-upon master - it is no use making changes without the other party's agreement and then presenting these as the "latest" copies). If the documentation is complete, accurate, agreed upon by the parties involved and signed by each of these of these parties (or their representatives), the document will represent a legally binding document.

7.2 FUNCTION OF EXPORT DOCUMENTATION Export documentation may serve any or all of the following functions: 

An attestation of facts, such as a certificate of origin



Evidence of the terms and conditions of a contract if carriage, such as in the case of an airway bill



Evidence of ownership or title to goods, such as in the case of a bill of lading

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

A promissory note; that is, a promise to pay



A demand for payment, as with a bill of exchange



A declaration of liability, such as with a customs bill of entry



A receipt for goods received.

There are five broad categories of documentation you will encounter when exporting. These are: 1. DOCUMENTS INVOLVING THE IMPORTER 

The proforma invoice



The export contract



The commercial invoice



The packing list



Letter of credit



Certificate of origin



Certificates of health



Fumigation certificate



Pre-shipment inspection certificate

2. DOCUMENTS REQUIRED TO EXPORT GOODS 

Letter of credit



Commercial invoice



Bill of entry export



Form F178



Form NEP (no foreign exchange proceeds)



Form E (repatriation of foreign exchange earnings)



Export permit



Export registration form 38

3. DOCUMENTS REQUIRED FOR TRANSPORTATION 

Bill of lading



Air waybill



Freight transit order



Road consignment note



Export cargo shipping instruction

4. DOCUMENTS REQUIRED FOR PAYMENT 

Commercial invoice



Letter of credit



Transport documents

5. INSURANCE DOCUMENTS 

Premium bills

CHAPTER-VIII ELECTRONIC DATA PROCESSING 8.1 DEPARTMENT STAFFS EDP INCHARGE : MR.VIJAYAKUMAR ASSISTANT

: RAVIKUMAR

The textile industries have changed tremendously in the last few years. To sustain competitive advantage, companies must re-examine and fine-tune their business processes to deliver high quality goods at very low costs. Most companies have now outsourced manufacturing to low labours. Globalization has led to increase in 39

competition and quality awareness and therefore it has become very important for the textile industry to integrate itself with information technology to survive. ERP is an integrated system that allows information to enter at a single point in process & updates a single shared database for all functions that directly or indirectly depend on this information. ERP solutions came into existence in corporate world due to various problems faced in Management Information System (MIS), Integrated Information System (IIS), Executive Information System (EIS), Corporate Information System (CIS), Enterprise Wide System (EWS), and Material Requirement Planning (MRP), Manufacturing Resource Planning (MRP II).

8.2 ERP “ERP is defined as an integrated, multidimensional system for all functions based on a business model for planning, control & global optimization of entire supply chain by using IT technology.”

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8.3 NEED OF ERP IN INDUSTRY ERP covers the techniques and concepts employed for the integrated management of business as a whole with objectives of effective use of management resources to improve the efficiency of the organization. This system designed to model and automatic many of the basic process of the company from the finance to the shop floor with a goal of integrating information across the company and eliminating complex expensive links between computer systems. It produces the dramatic improvements when used to connect parts of an organization and integrate its various processes. 41

ERP facilitates a companywide integrated information systems covering all functional

areas

such

as

manufacturing,

sales

and

distribution

,accounts

,payables,receivables,inventory ,human resources, etc. ERP integrates and automates most business processes and shares information enterprise wide in real time thus improving customer service and corporate integration. ERP solution includes manufacturing marketing as well as finance sectors. The main steps in development of such a software package are: • Defining the problem • Designing the programme • Debugging • Testing • Documentation • Maintenance • Redesign

8.4 CAD Computer-aided design (CAD) is the use of computer technology for the design of objects, real or virtual. CAD often involves more than just shapes. As in the manual drafting of technical and engineering drawings, the output of CAD must convey information, such as materials, processes, dimensions, and tolerances, according to application-specific conventions

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The textile designs are the original works of the designers. CAD helps them to visualize and see their imaginative design in final form without producing any sample swatch. Sometimes, the customers too provide ideas for designing according to their particular requirement. These are in the form of painted artwork or fabric samples and sometimes film negatives. The textile designers, with the help of CAD, convert them into workable designs. For this to be done the sample is scanned with the help of either scanners or digital cameras and then they are edited to obtain the final design.

8.5 CAD IS USED IN •

TEXTILE DESIGN SYSTEM: Most fabrics, yarn dyes, Plain weaves, jacquards or dobbies can be designed using a CAD.

•

KNITTED FABRICS: Some systems specialize in knitwear production and final knitted design can be viewed on screen with indication of all stitch formation.

•

PRINTED FABRICS: The print motif can be resized, recolored, rotated or multiples depending on the designer’s goal. New CAD systems are coming which have built in software to match swatch color to screen color to printer color automatically.

•

SKETCH PAD SYSTEMS: There are graphic program that allow the designer to use pen or styles on electronic pad or tablet thereby creating freehand images which are stored in the computer.

•

EMBROIDERY SYSTEMS: It requires assigning color and stitch to different parts of the design. Data is fed and multiple head work. Scanned images can be used also.

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•

DIGITIZING SYSTEMS: It can be done by defining the X, Y co-ordinates of series of selected prints around the pattern.

•

GRADING SYSTEMS: Certain pointes considered as “Growth Points” at which the pattern has to be increased to accommodate different body siz3e like 32/34/36 and so on.

•

MARKER MAKING SYSTEMS: It ensured minimal wastage of fabric. Striped fabric can be done also.

•

CUTTING OPERATIONS: Automated Cutting machines can be used after direction from marker making.

CHAPTER-IX FINANCE DEPARTMENT

Finance department is responsible for the financial administration and management of the company in compliance with the financial rules and the financial 44

guidelines acting in this company. Finance department concerns finance flow management of the company and is aimed to serving staff, managers, the Board of Directors and stakeholders and securing the financial health of the company.

9.1 FINANCE DEPARTMENT GOAL AND SERVICES The main goal of The Department is to provide the internal and external users of financial statements with relevant, accurate and timely information and to guarantee that the required financial revision is closely adhered to in order to protect the assets of the company. The Department takes care of finance flow to ensure that the company operates within its financial regulations and satisfies various external financial requirements. It also ensures that the corporate financial records comply with internal and external audit. If to look through the activity of The Department, there can be picked out the following main services it renders •

Payment of invoices and expenses

•

Income collection and salary management

•

Production and assignment of budgets, capital plans, and cash flow forecasts

•

Monitoring and managing financial plans

•

Auditing and reporting financial condition

•

Giving advice on pricing and costing

9.2 FUNCTIONS OF FINANCIAL DEPARTMENT TO PREPARE THE BUDGET It is duty of finance department of company to make the budget before actual

45

providing money to any department. It will be helpful to fulfill each department with minimum cost. Finance department can take the past records from respective department. It will be useful for making better budget. FINANCIAL MANAGEMENT In this function finance department gets money from capital market at very low risk and cost. Finance department analyzes all the resources of funds and create a good financial structure of company. In this structure, finance department analyze whether it will decrease the overall cost of capital on Average basis or not. MANAGEMENT OF INVESTMENTS OF COMPANY After making financial structure, finance department invests debenture holders and shareholders money in best projects for getting highest return on investment. For this finance department has to take investment decision. These investment decisions can be taken with the help of capital budgeting and investment analysis techniques. MANAGEMENT OF TAXES Management of taxes is also the function of finance or finance department. Taxes may be direct or indirect. Finance department continue watches the amendments and updates in tax laws and also create good corporate relation with government by paying return of corporate tax on the time. MANAGEMENT OF FINANCIAL RISKS Finance department takes many measures for managing the financial risks of company. For reducing loss of fund due to happening liquidity, solvency or financial 46

disaster, finance department makes a good plan and also takes the help of debt collectors, insurance companies and other rating agencies for reducing financial risk. MERGE OR ACQUISITION DECISIONS For creating good brand in the market, financial department works with marketing department and both takes the steps of merge and acquisition action. Main aim of merge or acquisition is to reduce competition and spread on brand in the market. Finance department provides the money for takeover any other firm for estimating its long run return.

STAFF MEMBERS

1. RAMESH[MANAGER] 2. SELVI[CASHIER] 3. SHANMUGAM[AO] 4. ABDUL SAMAD[ACCOUNTANT] 5. SELVARAJ[ACCOUNT ASST] 6. DIVYA[ACCOUNT ASST] 7. VIJAYALAKSHMI[ACCOUNT ASST] 8. SATHYA SUNDARI[ACCOUNT ASST] KANDHAN KNITSS

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BALANCE SHEET DECEMBER 31, 2009 ASSETS

LIABILITIES

CURRENT ASSETS Cash Petty Cash Temporary Investments Accounts Receivable – net Inventory Supplies Prepaid Insurance Total Current Assets

CURRENT LIABILITIES Notes Payable Accounts Payable Wages Payable Interest Payable Taxes Payable Warranty Liability Unearned Revenues Total Current Liabilities

$ 2,100 100 10,000 40,500 31,000 3,800 1,500 89,000

36,000 Long-term Liabilities Notes Payable Property, Plant & Equipment Bonds Payable Land 5,500 Total Long-term Liabilities Land Improvements 6,500 Buildings 180,000 Equipment 201,000 Total Liabilities Less: Accum Depreciation (56,000) Prop, Plant & Equip – net 337,000

$ 5,000 35,900 8,500 2,900 6,100 1,100 1,500 61,000 -

Investments

20,000 400,000 420,000

481,000

INTANGIBLE ASSETS

STOCKHOLDERS' EQUITY

Goodwill

105,000

Common Stock

110,000

Trade Names Total Intangible Assets

200,000 305,000

Retained Earnings Less: Treasury Stock Total Stockholders' Equity

229,000 (50,000) 289,000

Other Assets

3,000 -

Total Assets

Total Liab. & Stockholders' Equity CHAPTER-X

$770,000

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$770,000

10.1 SWOT ANALYSIS STRENGTH OF KANDHAN KNITSS 1. Good infrastructural facilities 2. High-tech equipments 3. Man power at least cost 4. Foreign opportunities 5. Good name among foreign clients 6. Repetitive orders from the clients 7. Quality of goods

WEAKNESS OF KANDHAN KNITSS 1. Lack of high technology when compared to foreign countries 2. Lack in high productivity 3. Lack in abundant labour supply 4. Shortage of raw materials 5. Lacking to generate economies of scale

OPPORTUNITIES OF KANDHAN KNITSS 49

1. High demand of goods produced by Kandhan Knitss among European Countries 2. Increased product varieties 3. Available of abundant labour 4. More demand in the market nationally and internationally 5. High investment opportunities THREATS TO KANDHAN KNITSS 1. High competition in the market 2. Geographical disadvantages 3. Continuous improvement in the quality 4. To make balance between price and quality 5. To make balance between supply and demand

CHAPTER-XI

50

CONCLUSION The Indian Textile and apparel industry plays a dominated role in the national economy and will continue to do so in near future. At present, the Indian apparel and textile sector is struggling to survive because of increasing costs of raw material, poor off take of yarns coupled with the poor realization from yarn dealers and a sharp rise in interest rate and the worse, the rising value of the Indian rupee. The industry has to pay greater attention to the issues in product improvement, labour welfare, branding and adoption of new technology for boost up their export level. Every year the growth of exports increasing and earnings of foreign exchange also increasing. From this training program I got chance to know many factors in production, merchandising and human resource departments in detail. And I like to include that the products manufactured in KANDHAN KNITSS is of high quality and hygienic. The company is able to overcome all the threats and can prepare themselves for facing the problems in advance; it can achieve a good growth in the future.

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