Internship Report on Fashion Asia Limited

1. INTRODUCTION This report describes the main activity and investigation during my internship at Fashion Asia Ltd. My internship employer was Northern Group, a rising and promising business organization of Bangladesh. My practical supervisor was Mr. M. Saif Uddin present General Manager(Marketing & Planning) of Fashion Asia Ltd., a sister concern company of Northern Group.My internship took place at Fashion Asia Ltd., from 16-04-09 to 16-05-09. The report will give a good impression of how I spent and learned during my internship program at Fashion Asia Limited. I have frequently visited all of the departments of Fashion Asia Ltd.I observed there how every department working to achieve its organizational goal. I have collected information on the basis of a survey questionnaire provided by our faculty supervisor at BIFT. As a MBA student of Apparel Merchandising, I have emphasized my study on apparel merchandising in the apparel manufacturing business process. Merchandiser is the pivotal person who actually merchandises the product for seller to the buyer, starting from order process to profit realization. The job responsibility is very high and needs versatile knowledge. Garment merchandisers these days need to have not only solid product knowledge but also soft skills like project management, time management and negotiation to facilitate their work. Operational efficiency of the merchandising team therefore becomes a key factor in the success of an industry player in the apparel manufacturing business. A major objective of this paper is to analyze the competitive advantages and disadvantages of Fashion Asia Ltd.According to my analysis, I tried to find out substantial room for improvement to enhance its competitive advantages and the recommendations has been given accordingly. Time has become the most important factor of competitiveness. Merchandiser has to assign subordinates to help him in the order execution, and direct the procedures. To record preferences for all the planned activities, merchandiser can use different tools and techniques. The Merchandiser should find out exact reasons for time consumption. It is necessary to keep record of time value and keeping it safe, as it is going to be shared with concerned parties/buyers. It is certain that merchandising jobs need huge time planning. The garment industry has always been highly competitive, and in today’s globalize free market, the competition has become much fiercer. Today’s buyers have increasingly high expectations that their demands and preferences will be met - they are offered a nearly endless variety of apparel options. Customer are product savvy, price savvy, and information savvy and they have many choices to have their demands fulfilled. For an apparel manufacturing company to be competitive in today’s global market, providing the customer a product of the desired quality and price at the right time is essential. 41

2. BACKGROUND OF HOST ORGANIZATION 2.1 ORGANIZATIONAL PROFILE

◘ Name of the Organization

:

Northern Group

◘ Website

:

www.northerngroup.com.bd

◘ Vision Statement

:

“We Want To Be the Most Preferred Name To Our Customers, Employees, Suppliers And society.” [Source: www.northerngroup.com.bd]

◘ Mission Statement

:

◘ We will always strive for Best Quality. ◘ We give highest priority to our commitment. ◘ We will turn Human Resources into Best Asset. ◘ We work for the Society and Environment. ◘ Everywhere we increase our efficiency by 10% every year [Source: www.northerngroup.com.bd]

◘ Location

:

Corporate Office Regency Place, House -9, Block-K Shoreward Avenue, Baridhara. Dhaka-1212, Bangladesh. Telephone: 880-2-9882516, 9882517, Fax: 880-2-9882610 Email: [email protected]

◘ Business Description

:

Northern Group, Bangladesh. Northern group is a group of companies; consist of Knitting units, Dyeing & Fabric Finishing units and several garment manufacturing units. These companies are 100% export oriented, exporting the knit apparels all over the world, especially in the Europe market. The group is enlisted with BGMEA, BTMA & EPB.

◘ Employees

:

2611persons.

◘ Ownership Type

:

Private Limited Company

◘ Annual Turnover

:

……………………………. 41

◘ Group Companies

:

◘ Social Responsibilities

● Northern Corporation Limited ● Tosrifa Industries Limited ● Fashion Asia Limited ● Printers & Printers Limited ● Northern Knit Limited ● Northern Fashion Limited ● Northern Seed Limited ●Garments Industry Management Academy (GIMA) :

Northern Group believes that our human resources can be the major assets of the country and society. Northern Group has been contributing the society by many social activities focusing on technical institutions especially: ◘Al-Haj Shafiuddin Ahmed Technical College ◘Garments Industry Management Academy.

◘ Environmental Safety Issue

:

Northern Group is very conscious about environmental pollution. Therefore they have built Wastage Water treatment Plant and have been using since long time on their own cost. Since Northern Group was always looking forward for the development in agriculture, they have established a agro-based company named Northern Seed Ltd. which involves in inventing & developing new variety of agricultural Seeds & Technologies which has been contributing the country’s economic growth as well as reducing global food crisis.

41

2.2 COMPANY PROFILE ◘ Name of the company :

Fashion Asia Limited

◘ Type of the company

Private Limited company

:

◘ Year of establishment :

2000

◘ Board of Directors

Mr. Sharifur Rahman (Chairman)

:

Mr. Naim Hassan (Managing Director) Mr. Mohim Hassan (Director) ◘ Trade license Number :

4763/0809, Issued on 11-08-2008.

◘ Bond license Number :

108/lices-sbw/2001, Issued on 04-01-2001

◘ Factory Location

:

The factory is situated at 135 Gopalpur, near by BSCIC, Tongi, Gazipur which is 6.3km away from Dhaka International Airport.

◘ Factory Address

:

Plot - 49/57(4th & 5th Floor) 135 Gopalpur, Monnunagar, Tongi, Gazipur. Phone: 9816201, 9816202

◘ Head Office

:

Regency Place (4th Floor) Plot-1, Road-Surhawardy Avenue, Block-K, Baridhara, Bangladesh. Phone: 9882516, 9882517, 9882607 Fax: 880-2-9882610 E-mail : [email protected] Web : www.northerngroup.com.bd

◘ Banker

:

Prime Bank Limited Banani Branch, House - 62, Block – E, Kamal Attar Turk Avenue, Banani, Dhaka. Phone: 8816474

◘ Nature of Business

:

Manufacturing (100%Export Oriented)

◘ Organizational Setup

:

Horizontal

◘ Production Facilities

:

Sewing and Finishing.

◘ Area of Business

:

Knitwear Manufacturer.

◘ Production Capacity

:

14,000pcs/Day. 41

◘ Manufacturing Items

:

All types of Knitwear such as Polo Shirt,T-Shirt, Ladies wear,Sweat Shirt, Fleece Jacket,Shorts, Knit Nightwear, Baby wear, etc.

◘ Category of Items

:

All (Men’s/Boys, Ladies/Girls, Kid’s)

◘ Brand Handling/Buyer :

● North American Mills Inc. (USA) ● Orientex Ind.Inc. (Canada) ● GETRACAR INC. (Canada) ● Carrefour (France) ● Lindex AB (Sweden) ● KappAhl AB (Sweden) ● GULDENPFENNING GmbH (Germany) ● Verburgt (Germany) ● Fashion Traders (Spain) ● Vanguard Trade International (Poland) ● Zaastex Ltd.

◘ Marketing Area(s)

:

● USA (United States of America) ● EU (European Union)

◘ Fabric Used (%)

:

Cotton 90% & Synthetic 10%. CVC 40% and CVS ax%

◘ Suppliers

:

Fabric- Usually fabric is outsourced from its sister concern Northern Corporation Limited and Tosrifa Industries Limited. Special type’s fabric and special purposes they outsource fabric from

some local

Market/factories. Accessories-They have some nominated supplier to source the accessories.Top management usually deals in supplier selection.But for some special purposes and urgent cases items are outsourced from other suppliers or sources.

◘ Yearly Turnover

: Last year the company stood at 2.32 million US Dollar in terms of its total turnover.

◘ Allied Business

:

Printers & Printers Limited. A garment panel printing house with a capacity of 20,000 pcs of garment with its’ 4 semi automatic printing machines started in operation in order to support the in-house printing requirement of NCL group.

41

3. COMPETITIVE ADVANTAGES 3.1 DEFINITION: COMPETITIVE ADVANTAGES When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage. Michael Porter identified two basic types of competitive advantage: • •

Cost advantage Differentiation advantage

A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself. Cost and differentiation advantages are known as positional advantages since they describe the firm's position in the industry as a leader in either cost or differentiation. A resource-based view emphasizes that a firm utilizes its resources and capabilities to create a competitive advantage that ultimately results in superior value creation. The following diagram combines the resource-based and positioning views to illustrate the concept of competitive advantage: A Model of Competitive Advantage

Resources

Distinctive Competencies

Cost Advantage Or Differentiation Advantage

Capabilities 41

Value Creation

◘ Resources According to the resource-based view, in order to develop a competitive advantage the firm must have resources and capabilities that are superior to those of its competitors. Without this superiority, the competitors simply could replicate what the firm was doing and any advantage quickly would disappear. Resources are the firm-specific assets useful for creating a cost or differentiation advantage and that few competitors can acquire easily. The following are some examples of such resources: • • • • •

Patents and trademarks Proprietary know-how Installed customer base Reputation of the firm Brand equity

◘ Capabilities Capabilities refer to the firm's ability to utilize its resources effectively. An example of a capability is the ability to bring a product to market faster than competitors. Such capabilities are embedded in the routines of the organization and are not easily documented as procedures and thus are difficult for competitors to replicate. The firm's resources and capabilities together form its distinctive competencies. These competencies enable innovation, efficiency, quality, and customer responsiveness, all of which can be leveraged to create a cost advantage or a differentiation advantage. ◘ Cost Advantage and Differentiation Advantage Competitive advantage is created by using resources and capabilities to achieve either a lower cost structure or a differentiated product. A firm positions itself in its industry through its choice of low cost or differentiation. This decision is a central component of the firm's competitive strategy. Another important decision is how broad or narrow a market segment to target. Porter formed a matrix using cost advantage, differentiation advantage, and a broad or narrow focus to identify a set of generic strategies that the firm can pursue to create and sustain a competitive advantage. ◘ Value Creation The firm creates value by performing a series of activities that Porter identified as the value chain. In addition to the firm's own value-creating activities, the firm 41

operates in a value system of vertical activities including those of upstream suppliers and downstream channel members. To achieve a competitive advantage, the firm must perform one or more value creating activities in a way that creates more overall value than do competitors. Superior value is created through lower costs or superior benefits to the consumer (differentiation). [Source: http://www.quickmba.com/strategy/competitive-advantage/]

3.2 COMPETITIVE STRATEGY A winning competitive strategy is founded on consistently understanding and predicting changing market conditions and customer needs. For an apparel manufacturing company to be competitive in today’s global market, providing the customer a product of the desired quality and price at the right time is essential.Besides buyers are very much conscious regarding the compliance issues.Buyers are likely to place orders in the compliance factories so it is very much essential to obtain compliance certificates from the respective authorities by ensuring all compliance issues.

41

3.3 COMPLIANCE & CERTIFICATION ◘ Oganogram of the Company : Organogarm Diagram has been attached separately with this section. ◘ Compliance Certification

:

At present FAL has no compliance certification but they have compliance infrastructure and adopting other compliance issues. The company and its top management is very much initiative in this regard, because they have ISO 9001:2000 and OKO-tex certification in Northern corporation Limited. WRAP certification is on the process in Tosrifa Industries Limited. Fashion Asia Limited has been audited by SGS, BSCI and COLES. ◘ Child labor Abandonment

:

Fashion Asia limited has a strict policy under which the hiring of underage employees is absolutely prohibited. ◘ Wages and Benefits

:

Fashion Asia Limited pays at above the minimum wage to the workers as per the minimum wage declared by the minimum wage board. Wages of every worker is paid within five working days from the last day of the wage period, usually 1st to 7th day of a month fixed as the wage period at FAL. Overtime payment and other benefits e.g. incentives, yearly bonus, group insurance etc. are given to the workers as per rules and regulations. ◘ Identity Card

:

Every worker has an Identity Card issued by Fashion Asia Limited .The card is also used to keep attendance by automatic electronic punching system. ◘ Working Hours

:

Regular working hours 8am to 5pm that I found at FAL and overtime don’t exceeded more than two hours. 7:30am to 4:00pm is the scheduled working hours followed during Ramadan. ◘ Leave and Holidays

:

Weekly holiday and public holidays provided according to the customs and rules.

41

◘ Fire Safety Arrangement

:

The infrastructure of Fashion Asia Limited is a piece of modern manufacturing unit which has maintained space allocation and have a good architectural concept. The Factory complex has four wider stairs at the four corners with wider exit ways. The factory complex also has the smoke detectors to be alert automatically and emergency exit and emergency lighting system. The factory is well equipped with fire fighting equipments e.g. fire extinguishers, hose pipe, fire alarm, smoke detectors and other fire fighting equipments. It has a big reservoir of water and own source of water. Fashion Asia Limited has fire fighting team consisting of 120 members. Among them 40 persons are especially well trained. I found regular fire drill, which happens once in a month in FAL during my internship period. Fire extinguishers checked regularly by the authority. Smoking is strictly prohibited in the factory compound. ◘ Health Facilities

:

● Ambulance Room : Fashion Asia Limited has an ambulance room with an area of 200sqft and equipped moderately .One senior physician and two full time nurses are serving the best to heal the health hazards of the staffs and workers of the FAL.They provide some primary medicines to their patients free of cost. ● Agreement with Clinics : Besides ambulance room they have agreement with two clinics which is near by the factory.One general clinic and another is specialized in mother & maternity care. During my internship period ,a security guard were wounded by the tempest and high waves and that was an mishap.FAL authority immediately sent the wounded person to their contracted private general clinic for the treatment. The contracted clinics are: ■ Abeda Clinic Private Ltd. ■ Marie Stopes Clinic. ● First Aid Box with Policy Board: Fashion Asia has 07 First aid boxes in the floor and 07 first aid policy boards. There is a first aid team consisting of 14 members who are trained in first aid medical applications. ● Washing Facilities : There are six Basins in the sewing floor, more over the lavatory is also near by and having good washing facilities.

41

● Sanitation Facilities : They have adequate sanitation facilities. 05 for executives and 10 for male workers and 20 for female workers. ● Ventilation and Temperature : The Factory is well ventilated and Temperature is maintained by cooling system. ● Cleanliness : Fashion Asia Limited has 14 cleaner who cleans everywhere on regular basis. Adequate numbers of waste bin are placed in the right manner. ● Dust and Fume Preventives : Though it is compulsory to use musk during working in the floor, but found that workers less motivated and initiative. Authority is trying their best to grow the awareness among the workers for the matter. ● Pure Drinking Water Supply : They have maintained a sufficient supply of pure drinking water at the suitable points and conveniently situated for all workers. ◘ Safety Facilities

:

● Personal Protective Equipment : The factory provides personal Protective equipment (PPE) to the workers to avoid hazards during work. The equipments are Needle guard, Mesh gloves, Musk, Aprons, etc. ● Alternative Stairs : Fashion Asia Limited has two alternative stairs which remains always open and it is 72” wide. The exit way has “EXIT” signboard which is lighted even in loadsheding. ● Walk-way in the Floor : Walk-way between machine lines has adequate space in the floor and the aisles are well marked. Emergency exit way aisle is marked with red color and a layout plan design indicating emergency exit way is well placed. ● Group Insurance for worker : The workers of Fashion Asia Ltd are covered by group insurance facilities. ● Other Safety Measures : Safety measures in parking, packing, loading and unloading areas followed in accordance with C-TPAT.

41

◘ Maternity Benefits

:

Maternity benefits exist in Fashion Asia Limited complying with the rule and regulations of Bangladesh. ◘ Child Care/Day Care Centre : At present they have a child care room in a temporary structure and the area is 200sqft.They have future plan to build separate building for ambulance/medical room and well equipped child/day care centre. ◘ Worker Welfare Facilities

:

● Worker Welfare Committee : Fashion Asia has a worker welfare committee consisting of 12 members. Among them 6 person is from management side and another 6 person is from workers side. They do have meetings regularly on different issues. Workers can share their problems with the higher management in the welfare committee’s meeting. ● Dining Facilities : Adequate dining Facilities have been provided for the workers so that they can have their meal that they bring along with them. The dining area is above 2400sqft.Dining is facilitated with dining tables,adequate supplies of pure drinking water,washing facilities etc.They have also a facilitated dining for the executives. ● Canteen Facilities : They don’t have any canteen facilities for the employees though they have a setup but I didn’t find it running. ● Transport Facilities : Transport facilities only provided for the top management. No means of transport is provided for the executives, stuffs and workers. ● Entertainment Facilities : During my internship they have celebrated their yearly program “Nababarsho”. The festival included cultural program organized by them, a rich and sumptuous meal and a raffle draw. They have a well arranged sound setup in their sewing floor which is controlled from PM’s room and used for announcement, music play and some other things. ● Cheap Value Shop : Fashion Asia Limited has no cheap Value Shop at present. ● Accommodation Facilities : Fashion Asia Limited doesn’t provide any accommodation facilities or dormitory facilities to the employees.

41

3.4 SUPPLY CHAIN MANAGEMENT The supply chain consists of all the operations necessary to produce and distribute a product, starting with the procurement of the raw material used in making the goods, the management of modern technologies, and ending with the delivery of the finished product. The Textile Supply Chain Management program focuses on efficiently satisfying demand. It includes studying approaches to solve problems in manufacturing, sourcing, transportation logistics, and timely delivery. I didn’t get enough scope to collect information on supply chain management at FAL.So, I am not going to give any description about it but it’s an important thing for gaining the competitive advantages in garments manufacturing business. A good supply chain management ensures high productivity with right quality & quantity at the right place in the right time.

41

3.5 ORGANOGRAM OF FASHION ASIA LTD.

Chairman General Manager Production Department

Quality Departmen t

Work-Study Department

Marketing Department

Accounts Department

MIS Department

Quality Officer

W.S Officer

Assistant Merchandiser

Assistant Accounts

Assistant MIS

APM Line Chief

Jr. W.S Officer

Auditor

Production Supervisor Supervisor Reporter

Store Department

Quality Inspector Worker Worker

Store Officer

Administration Sr.Q.A W.S PM Merchandiser Department Executive Executive Officer Manager Accounts MIS

Sr. Executive Admin Auditor & Compliance Executive Admin

Assistant Admin Asst. Store Officer Store Assistant

Executive HR Trainee Management Time Keeper

Medical Officer Nurse Office Peon Security Guard Cleaner

4. ORGANIZATIONAL STRUCTURE

Labor/Loader

4.1 PRODUCTION AREA [Source: From Fashion Asia Admin Dept.]

41

•

Sewing Floor Area

:

7560 Sq Feet.

•

Cutting Floor Space

:

4140 Sq Feet.

•

Finishing Floor space

:

1600Sq Feet.

•

Packing Floor space

:

1200 Sq Feet.

•

Ware House Floor Space

:

800 Sq Feet.

•

Loading /Unloading Area

:

1000Sq Feet.

•

Parking Space

:

2000Sq Feet.

•

Office Space

:

1200Sq Feet

•

Dining Space Area

:

2400 Sq Feet.

•

Child Care Room Space

:

240 Sq Feet.

•

Number of Toilets

:

Executives Workers

•

Number of Basin Facilities

:

06 basins

•

Generator Facilities

:

They have a 100KV with 144amp diesel generator and the

- 08 - 30

horse Power is 108. •

Total Floor Space of the Factory :

38000 Sq Feet. (Approximately)

•

Factory boundary area

:

Approximately 300 decimals.

:

726

4.2 EMPLOYEES

•

Number of Total Employees

41

• SL NO 1 2 3 4 5 6 7 8

9

List of the Employees

:

DESCRIPTION GENERAL MANAGER PRODUCTION MANAGER ASST. PRODUCTION MANAGER ADMIN DEPARTMENT EXECUTIVE ACCOUNTS& FINANCE MARKETING & MERCHANDISING DEPARTMENT WORK STUDY WITH REPORTER SEWING MANAGEMENT DEPARTMENT SUPERVISOR LINE CHIEF/TECH. SUB TOTAL STORE DEPARTMENT(FABRIC & ACCESSORIES) STORE INCHARGE FABRIC STORE ACCESSORIES SUB TOTAL SAMPLE DEPARTMENT INCHARGE SAMPLE SUPERVISOR

10

11

12

13

CUTTING SAMPLE MAN SUB TOTAL FABRIC CONTROL DEPARTMENT QUALITY ASSURANCE DEPARTMENT CUTTING SEWING FINISHING SUPERVISOR INCHARGE AUDIT DEPT SUB TOTAL SEWING DEPARTMENT LINE-A LINE-B LINE-C LINE-D SEWING OPERATOR LINE-E LINE-F LINE-G LINE-H RIB CUTTER MAN SUB TOTAL

SEWING HELPER

REQUIRED MAN POWER

1 1 1 8 1 6 9 16 5

41

1 1 1 7 1 6 10 16 5

21 1 7 3

21 1 7 2

11

10

1

1

1 2 6

1 2 6 10 3

8 50 35 5 2 3

10 3 6 40 30 4 2 3

103 35 35 20 35 35 35 35 25 3

85 33 33 20 35 35 32 33 25 1

258 21 21 15 21 21

LINE-A LINE-B LINE-C LINE-D LINE-E

EXISTING MANPOWER

247 18 17 12 21 18

LINE-F LINE-G LINE-H SUB TOTAL

21 21 15

INCHARGE SUPERVISORS ISSUE MAN HELPER CUTTER-MAN SUB TOTAL

1 2 3 40 6

19 12 13 156

130

CUTTING DEPARTMENT

14

1 1 2 40 6 52

50

FINISHING DEPARTMENT

15

INCHARGE SUPERVISOR HELPER FOLDING & POLY PACKING IRON MAN SUB TOTAL MAINTENANCE DEPARTMENT INCHARGE SUPERVISOR SR. MECHANIC

16

MECHANIC HELPER

ELECTRICIAN NEEDLE MAN SUB TOTAL

1 3 20 20 10 18

1 3 20 20 10 16 72

1 1 2 1 1 1

70 1 1 2 1 1 1

7

7

OTHERS CLEANER/CHECKER

17

PEON SWEEPER SECURITY GURD SUB TOTAL

GRAND TOTAL [Source: From Fashion Asia Daily Attendance Report Sheet]

14 2 2 8

14 2 2 6 26

24

745

682

Table -01 List of Employees

4.3 MACHINES

Fashion Asia limited has 334 sets of Sewing machines in their factory. Most of the machines are branded (e.g. Juki, Brothers, Pegasus and Kansai special) and 41

models are latest featured with cutting edge technology. The machine list of Fashion Asia limited is shown below in a table: Machine List of Fashion Asia Limited S/N

Machine Name

Quantity

1 2 3 4 5 6 7

Single Needle Lock Stitch Over Lock Flat Lock Back Tape Kansai Special (PMD) Rib Cutter Button Hole

149 Set 95 Set 64 Set 04 Set 03 Set 03 Set 05 Set

8 9

Button Stitch Snap Button

05 Set 04 Set

10 11

Thread Re-cone Bar-Tack

01 Set 01 Set

12 13

Cutting Machine Steam Iron

04 Set 19 Set

14 15

Label Cutter Compressor

02 Set 01 Set

16 17

Fusing Pico-ting

01 Set 02 Set

18 19

Needle Detector Thread Sucking

01 Set 01 Set

20

Fabric Inspection Machine Total Machines:

03 Set 368 Set Table-02 List of Machines

[Source: From Fashion Asia profile]

4.4 LAYOUT

● Line Layout Design

:

Traditional

● Number of Lines

:

8

41

● Average Number of Machine per Line

:

30

● Average Number of Operator per Line

:

30

● Average Number of Helper per Line

:

12

● Helper-Operator Ratio

:

2:1

● Number of Supervisor per Line

:

01

● Number of Line Chief per Line

:

01

● Number of Quality Inspector per Line

:

01

● Man Machine Ratio (MMR)

:

2:1

●Description of Layout

:

A good factory layout is directly associated with good work flow, right from material receiving till the finished goods go out of the factory. Whatever type of plant layout a firm develops, it should be designed to optimize quality, throughput time and flexibility. Different arrangements of machines in sewing lines are aimed towards optimal floor area utilization, have better controls, easier supervision, and controlled installation and running costs, besides better housekeeping and conformance to compliance. There is no right or wrong layout as such; the aim is to maximize the use of floor area and easy maneuvering of machines to achieve efficiency in production. Fashion Asia Ltd has a good factory layout. Their sewing line layout is designed horizontally.FAL has the compliance layout which has the better controls easier supervision and better housekeeping.

4.5 PRODUCTIVITY & INCENTIVES ◘ Production Capacity of the Factory : SL NO 1

Product

Production Capacity/Month

Polo/Golf Shirt

3, 20,000 pcs.

41

2

Basic T-Shirt

4, 50,000 pcs.

3

Romper/Baby Set

2, 30,000 pcs.

4

Fleece Sweat Shirt

2,00,000 pcs. Table-03: Monthly production Capacity

[Source: From Fashion Asia profile]

● Production Capacity per Line

:

52,000 pcs per Month.

● Productivity per Line per Shift (8hrs) :

5,100 pcs per Shift.

● Targeted Organization Efficiency

:

55%

● Actual Organization Efficiency

:

40%

● Average Line Efficiency

:

40%

● Highest Line Efficiency

:

60%

● Lowest Line Efficiency

:

30%

● Defect / Alter Percentage per Line

:

15%

● Work Study Team : Work study team continuously working with the production department to enhance its productivity. Work study team works in each section from cutting section to finishing section. ● Work Study Methods : A dedicated team is always fighting for the quality and productivity by using different methods and techniques. They frequently doing time study, process study, and set their target productivity and at the end of the day they prepare a report which indicates all the parameters and achieved efficiency level. ● Incentives : Fashion Asia limited does provides incentives among the workers for full filling the targets in weekly/monthly basis. During my intern I found them announcing 4.6 INDUSTRIAL ENGINEERING TOOLS AND TECHNIQUES the incentives for the most efficient line of month/week. Fashion Asia Limited uses different types of industrial tools and techniques in different stages of production. They are described below ◘ Pre-Production Planning

: 41

After receiving of each conformed order sheet work study team prepare a work breakdown sheet which contains list of processes and the SMV data’s to have an idea of production layout planning. Besides other sections of production department do planning about their course of action. Then before starting of the production they conduct a pre-production meeting. I had an opportunity to attend a pre-production meeting. Merchandiser is the person who is responsible for arranging and as well as conducting a successful Pre-production meeting. Merchandiser should describe about his order packages with all essential information and should concentrate on the critical points that may arise in the time of bulk production. The pre-production meeting I attended was lack of co-ordination and low profiled presentation. ◘ Production Stage

:

The primary advances in sewing have been developed in the methods used to handle parts of garments, although the use of high-speed motors and automatic needle positioning on the machines have added to increased production output. Nevertheless, the assembly stage remains highly labor intensive and involves delicate handling and sewing operations that do not lend themselves to automated progress. The basic production technology is characterized by the progressive bundle system. Work is organized such that each worker is specialized in one or a few operations. The fabric is first cut and then grouped by parts of the garment, tied into bundles (pre-assembly) and then sewed together. The individual sewing tasks are organized in a systematic fashion and specialized sewing machines have been developed for the individual tasks. A worker receives a bundle of unfinished garments, performs her single task and precedes the bundle for the next operation. It takes about 25 operations to complete a single basic T-shirt, complicated design needs more operations. The most critical stage of this business is production stage because of the errors, delay timing, alter percentage, productivity and lead time. ◘ Industrial Engineering Tools : Fashion Asia Limited is equipped with branded latest model sewing machines which added competitive value to them. Machines have hi speed motors and some special features that, if utilized properly can enhance their efficiency in productivity and quality. They apply different types of folders for the accuracy and productivity. They also supply different types pattern board regarding running styles to make easy and to consume less time for the critical operations. Work study team always working on how they can improve their productivity and accuracy by implementing different types of industrial techniques and with the help of different types of industrial tools of garments manufacturing technology. ◘ Engineering Developments in Garments Industries: 41

The basic Multi Purpose Sewing Machines are equipped with Electronic Motors which perform certain functions automatically at a very high speed resulting in error free production, savings in other raw material consumption’s and time saving for operators. All these three would contribute significantly to overall high standard of quality and low production cost of the garments. The basic machines would be equipped with Automatic Back Tacking function that would ensure stitches of any component of the garment is firmly secured at both ends. This in turn will eliminate the possibility of loose stitches. These machines are also equipped with proper needle positioning to make sure considerable reduction in handling time for the operator coupled with Thread Trimming Device which would cut the thread at the end of each operation to reduce thread wastage and give a neat finish to the garment.

5. MANUFACTURING PROCESS

◘ Manufacturing Process at Fashion Asia Ltd

:

The Garment Manufacturing starts after receiving the processed fabric, which can be categorized into 3-sub section: 41

• • •

Cutting Section Sewing Section Finishing Section

5.1 CUTTING SECTION The in-house fabric will be spread out in layers on the Cutting Tables as per required consumption unit of fabric. Consumption of fabric is calculated by marking the body pattern parts of the garments on a certain width of fabric. Marking can be done both manually and by CAD/CAM; FAL has no CAD/CAM systems their own. They do the marking job manually for Basic styles, for special types of styles they done the CAD marking from their sister concern Tosrifa Industries Ltd which situated at the same factory building. After marking fabrics up to 150 t0 200 layers would be spread on the Tables. Thereafter the pattern marker on the basis of which the garment is to be stitched will be placed on the fabric. The cutting of the fabric will be undertaken by automated Straight Knife Cutting Machine, which has the capability to cut unto 300 layers at a time. Also it improves accuracy in cutting and precise fitting of garments for all sizes.

5.2 SEWING SECTION From the cutting section cut panels in bundles supplied to the sewing section for sewing all together to produce a garment. Machine layout setup done according to the operation breakdown of the specific styles and designs of the garment to be produced. Work study team sets machine layout. Several parts joints together in the different stages of the production, so cut panel bundles supplied to the operator’s as per operations. Sewing techniques at FAL is written down below : ◘ Automated Plain Stitches This section has been balanced perfectly with multipurpose Sewing Machine as well as specialised machines with a high level of automation. ◘ Button Hole and Button Stitch Buttons holes and button stitching on the garments done on specialized automatic Button Hole and Button Stitch machine to give proper shape of button hole and proper attachment of button at a very high speed. ◘ Special Purpose Machines 41

Over lock Machines and Flat lock machines join sleeves and seaming sides, in one operation. These machines sew parts of a garment together and simultaneously cut waste fabric. This gives smooth finish to stitched edges of garment for better comfort in wearing.

5.3 FINISHING SECTION

◘ Pressing & Packing The Garments will be ironed using steam irons installed with and integrated Boiler System. Garments would thereafter be placed in polythene bags and sorted size wise and Design wise as per specification given by buyer. For export consignment garments are packed in carton boxes according to the instruction given on buyer’s purchase order to reduce their handling and distribution cost. ◘ Quality Control Quality checks have been built at various stages of the production process Quality Control process began at the stage of production of the fabric from Knitting section , quality of fabric produced by knitting section of NCL,TIL that would be checked several times for knitting defects. Only quality- approved fabric is received to store from where it would be issued to cutting section. In addition to this there will be a 100 inspection of garment before finishing process starts. After the garments are pressed, the Finishing Section will make a final inspection to confirm measurement and finishing of garment before sent for final packing. While arriving at the manpower requirement provision has been made for quality control inspectors at each stage.

6. DEPARTMENTS AND POLICIES

The entire management process comprises of the following units: 6.1 MERCHANDISING DEPARTMENT 41

Fashion Asia Ltd. has a merchandising department headed by GM (Marketing & Planning).They have four senior merchandiser and two assistant merchandiser who merchandise the products to the buyer. Each of the merchandiser has one or several accounts of the buyer and they are responsible for that buyer. Assistant merchandiser helps senior merchandisers to reduce the workload and equipped themselves with practical knowledge. Price negotiation done by the top management as it is a very sensitive matter. Then conformed order place to a merchandiser for the successful execution of the order. Now merchandiser becomes responsible for the order ,so he sends detailed order package to all respective sections and departments. Also fixes his sourcing strategy for required materials that are needed to fulfill the production. This department is very important for every garment industries and garment related buying house. Merchandiser is the pivotal person who actually merchandises the product for seller to the buyer, starting from order process to profit realization. By nature merchandising job is to co-coordinating a set of jobs, so it needs multi skills in a person. Garment merchandisers these days need to have not only solid product knowledge but also soft skills like project management, time management and negotiation to facilitate their work. Operational efficiency of the merchandising team therefore becomes a key factor in the success of an industry player in the apparel manufacturing business. Design and product development is an integral part of any apparel manufacturing. A merchandiser should be able to understand and communicate with the sample section and production people in a comfortable manner both should have a common lingo since both the merchandiser and the sample and production people work in close proximity, hence there should be a proper understanding among them.

6.2 COMMERCIAL DEPARTMENT There is no separate commercial department at FAL.One Commercial Logistic officer works under administration department .Head office looks after most of the major commercial activities. The Logistic officer is responsible for documentation, total transportation activities, import- export, L/C open, or any 6.3 ADMINISTRATION DEPARTMENT other Banking activities. Administration department is headed by Sr. Executive Admin & Compliance. They total 09 employees in this department. Administrative jobs are the main function of this department. Besides other responsibilities of this department is to 41

co-ordinate HR issues, Compliance issues. Accounts and Commercial logistic officer also attached to this department. 6.4 ACCOUNTS & AUDIT DEPARTMENT All the accounts of the organization are controlled by the head office of Northern Group. They have one Jr. Executive accounts & finance who works under administration department. His main responsibilities is to maintain petty cash, process of all types of bills (incoming & outgoing), salary & overtime and all sorts of payments & bill collection. 6.5 PURCHASING POLICY Corporate head office of northern group controls purchasing policy of Fashion Asia ltd.Daily needs purchased by the factory maintaining proper documentation with accounts department. 6.6 MAINTENANCE POLICY Maintenance is defined as the restoring of an item to its original condition or to working order. This can be achieved by repair, replacement of parts or total replacement of the item. Fashion Asia has a well equipped maintenance section with required manpower. They have one NEEDLE-MAN who deals with only needle problem. He collects broken and useless needles and replaces new needles.

6.7 INDUSTRIAL WASTE DISPOSAL POLICY They depose waste properly on regular basis. As they don’t involved in any chemical process so they do not have any chemical waste.They have only wastage of small piece of fabric, threads, etc.

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7. SAMPLE MAKING FACILITIES 7.1 DESCRIPTION OF THE SAMPLE ROOM Fashion Asia has a well equipped modern sample section which has a 425 sqft floor space. Total number of machines is eleven. The sample section is headed by Sample In charge who should be a pattern master.They have six multiskill sample men along with other four employees(cutting-02, quality-01 and supervisor -01).Their target is to produce 300 samples in each month. They can produce any types of samples as per buyer’s requirement. 7.2 TYPES OF SAMPLES They are capable to produce all types of samples as per buyer’s requirement. Samples they usually produce listed below: • • • • • • • • • • • •

Development samples Proto samples Salesman samples Photo Shoot Sample Revision sample Size set sample Preproduction sample Pre-Line Sample Wash Sample Dummy/Fit Sample Counter sample Shipment sample

7.3 MONTHLY AVERAGE PRODUCTION OF SAMPLE Their targeted production of samples is 300pcs per month. But the average production of sample is 150-200pcs per month. Top management is always trying to enhance the performance of the sample section. 7.4 Use of CAD/CAM System Fashion Asia Ltd. Has no CAD system presently.They do pattern making,grading and marking manually for the basic styles.But they done the jobs for the critical & complicated styles from their sister concern Tosrifa Industries Ltd as they having the CAD/CAM system. 41

8. IMPORTANCE OF SAMPLING IN GARMENTS INDUSTRIES Fashion is defined well as the prevailing mode or shape of dress designed by those lead is accepted. In any given period, fashion reflects the social, economic and cultural forces. Our ancient civilization identified status or power with visual elements like clothes, embellishments, head gear, worn by the kings ,ministers, priests or warriors. A fashion remains popular for a few months or years before being replaced by yet another fashion .A product or activity is in fashion or is fashionable during the period of time that a large segment of society accepts it .After a time, however the same product or activity becomes old-fashioned when the majority of people no longer accept it. 8.1 IMPORTANCE AND NEED OF SAMPLING Designing and sampling are the main process in Garment Industry and it as a vital role in attracting buyers. Because the buyers generally places the order after they are satisfied with the quality of the samples. The samples decide the ability of an exporter. The buyer will access the exporter and his organization only by the samples. If the samples are of good quality and with reasonable price naturally the buyers will be forced to place the order. So it is essential that the samples should be innovative and with optimum quality. The purpose of sampling is not only to get bulk orders and also give some additional benefits to the exporters. By doing sampling the exporter can estimate the yarn consumption for developing the fabric, a clear idea on costing more ever the manufacturing difficulties. Besides by doing sampling only the exporter can optimize the processing parameters for mass production, which helps to avoid all kind of bottlenecks. All these works are carried out by the sampling department, which us led by a sampling in charge. Design and product development is an integral part of any organization. Sampling is the best way to place an order. Though it is a difficult and time ending process it will help the exporter to get the order from the buyer. The purpose of sampling is not only to get bulk order and also it gives some additional benefits to the exporters. By doing sampling the exporter can estimate the yarn consumption for developing the fabric ,a clear idea on costing and manufacturing difficulties. Besides by doing sampling the exporter can optimize the processing parameters for mass production, which helps to avoid all kinds of bottle necks .The samples, decide the ability of an exporter. The buyers will assess the exporter and his organization only by the samples .If the samples are of good quality and with reasonable price naturally the buyers will be forced to place the order, So it is essential that the samples should be innovative and with optimum quality. 41

8.2 ADVANTAGES OF SAMPLING •

Gain a full understanding of the sample development process.

•

Able to plan a development process suitable for your company needs.

•

Able to strengthen your team’s awareness and understanding of other department needs.

•

Awareness of reducing development and company costs and improve customer service.

•

Find ways of minimizing risk factors and maximizing quality parameters.

•

Economic / Market Place Needs are Identified

•

Forming First Concepts/Ideas

•

Developing concepts into Prototype Sample

•

Prototype Specification Written

•

Modifying Prototype until Approved

•

Amendments to Specification

•

Finalized First Sample & Specification to Retailing

8.3 MODERN CUTTING-EDGE TECHNOLOGY FOR SAMPLING 'Big may be beautiful in manufacturing but the textile industry is dominated by numerous small to medium sized businesses and sample development is a vital to the survival and success of Textile business whatever its size or type of production it enhance. Larger organizations may have departments devoted to the research and development of products or Sampling departments who are constantly producing new samples and ranges. Innovation and creativity are necessary for any business to move forward and take advantage of prevailing market conditions. The increasing use of computer aided design and manufacturing has helps all types of Textile businesses to speed up the process of sample development and to do this more cost effectively. Many organizations large and small have been able to identify and exploit such markets or a gap in the market for specialized samples. As a result some smaller companies adapted the whole of their production. For example, the fashion knitwear manufacturer now makes the hosiery industry, the weft knitter who now 41

makes specialized medical samples and the warp knitter who produces geotextiles for engineering end use. Despite the diversity of textile products the development process is similar for all and the process has been transformed by the increasing use of CAD/CAM, computer aided design and computer aided manufacturing. These enable new ideas and effects to be reproduced on computer and tried and tested in a most cost effective and visually acceptable way. The sample development process splits down into three main phases. The first of these covers the development of the initial concept or design idea through to its approval by the customer and full review/risk analysis by the development and production teams. 8.4 DESIGNERS ROLE IN DESIGNING A GARMENT There are countless styles, each of which has its own distinctive characteristics and most of which have been created by designers and only by them. Designers need to be aware of the trends and traveling provides them with opportunities to interpret their customer needs .A designer creates and arranges garments and accessories in such a way that they are visually pleasing as well as functional. Designing a garment involves below mentioned steps: • • • •

The design Making a toile Making a card pattern The finished dress.

8.5 PERSONS INVOLVED IN SAMPLING • • • • • • • • • • • •

Development team Designers/Sample developers, Customers/Clients, Textile technologists Garment technologists Packing & Dispatch, Sourcing &Purchasing, Costing & Finance, Sales & Marketing, Production team, Planning Control &, Testing Quality control

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8.6 TYPES OF SAMPLES There are several types of sample that is produced in garments manufacturing business development. Samples are produced as per buyer’s requirement in the different stages of the business process. Common and prevalent sample types are written down below: • • • • •

• •

• • • • • • • • • • •

Proto sample Development sample FIT Sample Counter & Duplicate Counter Sample GFE Sample Sealed Sample [Red / Yellow-Sealed] Size set sample Preproduction sample Production Sample Bulk Production Sample Lab-Test Sample Pull Test Sample Flammability Test Sample Photo Shoot Sample Salesman Sample Shipment sample TOP [TOP OF THE PRODUCT]

8.7 SAMPLING PROCESS The process of sample department varies from context to context, and the development process covers a wide range of diverse products from new fibers, fiber blends, new yarns, fabric structures ,finishes and surface effects and all types of made up products such as knitwear, hosiery, cut and sewn garments, household products, technical and medical products. There are different phases of sampling; the first phase covers the development of the initial concept or design idea through its approval by the customer and full review/risk analysis by the development and production teams. The second phase covers the process following acceptance of the first prototype sample and includes the functions of sourcing and ordering component, testing the product and carry out trails once the finalized sample specifications has been drawn up, the third and final phase commences. The phase includes a range of activities that are carried out before large scale or bulk production capacity outside the home producer/developers wherever this is applicable.

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8.8 ROLE OF MERCHANDISER IN FULFILLING THE SAMPLING In preparing sample the merchandiser places an optimal and pro-active role. The merchandiser is a person who has to follow all the activities which filled up sight from the manufacturing unit. Merchandiser should understand the specifications and requirement of the buyer and produce samples by considering: • • • • •

Communication Optimizing situation Punctuality in giving details and samples to the buyers Efficient follow up Excellent negotiation skills

The merchandiser has to consider all the quality parameters related to the samples to be developed in case of non-conformities in the sample developed. Revised samples may be sending for approval purpose. It is the duty of the merchandiser to dispatch the developed samples on the time to the concerned buyers.

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9. TELECOMMUNICATION FACILITIES Technological progress in telecommunications and transportation networks has made it easier for apparel manufacturers to divide the supply chain on an international basis and to perform the assembly stage in low-wage countries. Information and fashion go hand in hand in today's market. Winning fashions are determined not simply by producing the best garment, but as importantly by delivering the right garment at the right time, the right place and at the right price. Without effective information management strategies companies cannot hope to be effective suppliers in today's marketplace. Fashion Asia Limited has well telecommunication facilities.They have TNT land phone and also wireless private land phone.They have hi-speed broadband internet connection with 512 kbps speed.They have private domain address and website.Facimile facilities is available.They don’t have any video conferencing facilities yet and they don’t have any fiber communication. Presently two laptops used within FAL by the high officials.

10. TRAINING FACILITIES There is no specific training department at FAL for employees and executive. But they provide training newly recruited workers, officers and security people. They have training facilities available for skill development for officers ,supervisor, executive and managers.Fashion Asia Ltd encourage employees to have training on compliance issues (e.g. fire fighting,first aid etc.) and material utilization & productivity.

11. HUMAN RESOURCE MANAGEMENT IN TEXTILE SECTOR Textile industry gives employment to millions of people. In order to recruit skilled workforce in textile sector, proper training programmes would thus facilitate in supply of well qualified workforce. Thus the role of HRD has gained momentum in terms of employing manpower that satisfies the professional requirements of this sector and that is well skilled. Thus many collaboration among many multinational companies and educational institutions is been observed. There are four elements of production namely manpower, time, materials and machines. Due to globalization seen in the textile industry out of these four elements of production, the two viz. manpower and time are to be cut down, i.e. 41

sacrificed as the invent of improved machines and the cost of materials. Due to the modern HR practices are affected by terms such as multiskilled, production measures, advantages of competition, casual labor, social security, subcontracting, etc. Now-a-days a lot depends on the bargaining power of the labor, legal policies and the scenario of the labor market. This has started since the foundation of WTO (World trade organization). With the technological advancement in the textile industry the overall production with higher quality is been seen, due to usage of high end machineries and technologies it has been a witnessed that the number of workers employed in the textile sector are facing job-loses. This scenario is same in developed as well as developing nations where there is increased productivity due to advanced technology, but cut in the number of laborers. The HRD department of any company is responsible recruiting skilled labors and executives, allocation and planning of work, monitoring of workforce and performance appraisal. It is also responsible to timely up gradation of skills of the workforce by organizing educative professional workshops or seminars. If HRD activities are carried out in proper professional manner it could result into minimization of cost and wastage, right recruitment of workforce, increased stability of the company, flexible enough to cope up with futuristic developments and most important maximizes production. The advent of HR practices in textile sector was rather slow in comparison to other industrial sectors. But due to globalization there is increase in competition as a result development of human resource has become essential. However organized HR practices are being adopted mostly by the mill sector. In last decade we have seen not so good performance by textile sector, this was because of lack of HRD department in many mills. But the scenario has changed as HRD departments have taken up their role in textile sectors. Various training programmes pertaining to training of workforce, textile related topics have helped in enhancing the overall performance of the textile companies. In order to get increased productivity from workforce it is essential to have a well framed HRD system in the organization. If the principles of HRD are adopted it could result in decrease in non-attendance by 20% and increase in productivity by 30%. So to cope up with the market competition HRD is very essential element for the textile industry. HRD department is responsible for developing the feeling of motivation in the employees, this motivation in other words is the commitment of the employees towards the job and the organization. When the work of HRD is done effectively it would result into co-operation among team members, demolition of centralized system of decision making, creates homely environment, feeling of ownership and positive working atmosphere. 41

12. SWOT ANALYSIS 12.1 Definition and Use of SWAT analysis SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

Strategic and Creative Use of SWOT Analysis ◘ Strategic Use: Orienting SWOTs to an Objective A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. • • • •

Strengths: attributes of the person or company that achieving the objective. Weaknesses: attributes of the person or company that achieving the objective. Opportunities: external conditions that are helpful to objective. Threats: external conditions which could do damage to performance.

are helpful to are harmful to achieving the the business's

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

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The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development. ◘ Creative Use of SWOTs: Generating Strategies If, on the other hand, the objective seems attainable, the SWOTs are used as inputs to the creative generation of possible strategies, by asking and answering each of the following four questions, many times: • •

• •

How can we Use and Capitalize on each Strength? How can we Improve each Weakness? How can we Exploit and Benefit from each Opportunity? How can we Mitigate each Threat?

◘ Matching and converting Another way of utilizing SWOT is matching and converting. • •

Matching is used to find competitive advantages by matching the strengths to opportunities. Converting is to apply conversion strategies to convert threats or weaknesses into strengths or opportunities.

An example of conversion strategy is to find new markets.If the threats or weaknesses cannot be converted a company should try to minimize or avoid them ◘ Internal and external factors The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the company's unique value chain. SWOT analysis groups key pieces of information into two main categories: ●Internal factors – The strengths and weaknesses internal to the organization. ●External factors – The opportunities and threats presented by the external environment to the organization. The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.

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◘Use of SWOT Analysis The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study. ◘ Corporate planning As part of the development of strategies and plans to enable the organization to achieve its objectives, then that organization will use a systematic/rigorous process known as corporate planning. SWOT alongside PEST/PESTLE can be used as a basis for the analysis of business and environmental factors. • • • • • • • • •

Set objectives – defining what the organization is going to do Environmental scanning Internal appraisals of the organization's SWOT, this needs to include an assessment of the present situation as well as a portfolio of products/services and an analysis of the product/service life cycle Analysis of existing strategies, this should determine relevance from the results of an internal/external appraisal. This may include gap analysis which will look at environmental factors Strategic Issues defined – key factors in the development of a corporate plan which needs to be addressed by the organization Develop new/revised strategies – revised analysis of strategic issues may mean the objectives need to change Establish critical success factors – the achievement of objectives and strategy implementation Preparation of operational, resource, projects plans for strategy implementation Monitoring results – mapping against plans, taking corrective action which may mean amending objectives/strategies.[10]

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12.2 SWOT ANALYSIS of Fashion Asia Limited ◘ STRENGTHS: ●Having own diesel Generator: FAL having own diesel generator plant which is can produce 100kv with 144 amp and the horse power is 108. ●Cross Cultural Communication: In FAL there are near about 800 employees who are from different environments and having different cultures but fortunately there is no cross cultural communication. ●Market Reputation: Northern Group is one of the major Group’s in Bangladesh that’s why they have a strong reputation in RMG sector. ●Handling Famous buyers: Northern Group has long experience in handling various famous buyer’s from Europe, America and Canada. Some reputed buyer working with Northern Group for a long time. ●Experienced Workforce: Fashion Asia has good number of experienced employees who are working in northern group for a longtime. ●Good Working Environment: A good working environment exists in Fashion Asia Limited.They ascertained spacious layout to facilitate good working environment.The Factory is well ventilated and Temperature is maintained by cooling system. ●A Dedicated Top Management: A decent striver dedicated Top Management is always working along with the employees to achieve the best. ●Positive Attitude towards Employees: They always shows positive attitude towards their employees in any regards. ●Quick Adaptations of ISO Standards: Fashion Asia Limited is adopting quickly ISO Standards Quality management system. Quick Adaptations of ISO Standards would enable management efficient to achieve their organization goal.

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◘ WEAKNESSES:

●Employee’s motivational level: The one weakness of FAL is that their employees are not motivated enough to act as a team player and with the best effort to achieve their common organizational goal This is the responsibility of HR department to find out at to see at the time of hiring them that what the thing is that their employees can be motivated. ●Delay in order shipment: The delivery of each contract is always not done on time. The customer has to wait to get his/her desired product. Sometimes they have to ship the goods by Air Freight to fulfill their commitment to buyers. ●Communication Gap: There are a little bit gaps in communication and coordination between the departments. May be they confirm each and every thing from each other but still they make mistakes and blame each others to safe them. ●Team Building: A major problem is team building. There is almost no concept of team. Each person is doing individually and performing his/her activities. ●Casual Attitude: The attitude among the employees is very casual. They are not so conscious regarding the rules and regulations of the company. Some implementation is on the process among the employees and management process but slacken adaptation have been observed. ●HR Department: Fashion Asia doesn’t have any HR Department at present but they have one HR executive who performs only some routine activities. That activity doesn’t add any extra value to the company. They are not working to train the employees and making appraisals to evaluate them. ●High Wastage percentage: According to my observation wastage percentage is high at FAL as they does mostly manually marking in cutting section and high alter percentage in sewing line. ●Material Management: Material management is found not so strong rather flabby.

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◘ OPPORTUNITIES: ●New Technology: The technology has been improved for the garments industry and these technologies are being acquired by the international competitors as well as by local competitors so they are producing good quality textile products and increasing the efficiency as well as decreasing the cost of production. FAL has the opportunity to adopt new technologies which would cost large amount initially but if considered long-term investment then it would be more beneficial .Latest technology can improve the production quality, efficiency and decrease the cost of production. ●Motivating the employees: HR department can prove and show them they are here for employees by motivating the employees performing their best. They can find the motivation level of their employees and give them incentives to motivate them. ●ERP software: ERP (Enterprise Resource Planning) can be installing to have the better control over resource planning. Enterprise resource planning (ERP) is a company-wide computer software system used to manage and coordinate all the resources, information, and functions of a business from shared data stores. ●Horizontal Setup: Northern Group has been initiated to set up a Spinning Mill which would support their sister concerns and as well as local market. This will transform their vertical setup into horizontal setup and uphold their market reputation also. ●Up gradation of GIMA: GIMA is one of the sister concern of Northern Group that can introduce new courses with new collaboration. As Northern Group feels that human resources can be the major assets of the country and society. So they have a wide scope to contribute to the society by developing quality human resources with proper course content and training.

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◘ THREATS: ●Political Instability: As we all know that the political situations of Bangladesh are not stable and it is getting into more complex situations. Each new government establishes its new rules and regulations which impact the industries badly. Now a day there are many major issues which are affecting the RMG sector like vandalism violent attack, worker unrest, high, weaken policies and implementation, local terrorism, unplanned infrastructure development, etc. ●Shortage of electricity: The government of Bangladesh still unable to provide the required quantity of electricity and the demand of electricity is increasing day by day. The companies who have their own electricity plants are save but those who don’t have are facing a major problem of shortage of electricity. ●High petroleum cost: The high consumption of the petroleum is also the major issues because in international market, their prices are going up and touching the sky, due to which the freight costs are increasing day by day and hence the cost of production, is also increasing rapidly which is becoming the reason of losing foreign customers of Bangladesh. ●Employee Migration: Migration of employees increased at Fashion Asia Limited. Reasons behind migration may be not getting desired salaries and incentives from the company or any other reasons. ●International and Local Competitors: One of the major threats at international level which FAL and RMG sector of Bangladesh has to face, is international competition which is growing up and competitors are capturing the market share rapidly that’s why market share in foreign market is cutting down gradually. In local market, there are many companies in Bangladesh who are improving their product quality by acquiring new technologies. ●The Running World-wide Economic Recession: Bangladesh's economy has weathered the downturn better than most. But like many other countries in the region, its export sector has been badly affected as the crisis hits real economies elsewhere, and wealthier countries slide into recession. The garments manufacturers, sweats over plunging sales in key US and European markets and wonders whether job cuts for his and other firms could be just around the corner.

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13. RESPONSIBILITIES AS A STUDENT INTERN 13.1 WORK PLAN AND TIME During my internship period I have visited every departments and sections of the organisation.My workplan was directed by my practical supervisor.During my visit to the departments I tried to know about their setups and their work procedures. I didn’t get much more scope to acquire in depth knowledge because of the time constrains. My work plan and time is given below: Student’s Diary Date

Day st

15-04-09

16-04-09

1 Day Wednesday

2nd Day Thursday

18-04-09

3rd Day Saturday

19-04-09

4th Day Sunday

20-04-09 21-04-09

5th Day Monday 6th Day Tuesday

Job Description

Remarks

Report to the DGM at the corporate head office of Northern Group. He assigned us with two of their factories at Gopalpur,Tongi as the intern employee Done and I was attached with Fashion Asia Ltd. during my intern period. GM sir briefed about the work plan and schedule. GM sir took me along with him in a pre-production Done meeting to have a practical experience. I was assigned to visit knitting section of Tosrifa Industries Ltd. a sister concern of Northern Group to have the practical knowledge on knitting Done technology, characteristics of different types of knitted fabric that are producing. Study on knitting at knitting section of TIL.

Done

Study on knitting at knitting section of TIL.

Done

I was assigned to visit and study on textile dyeing at dyeing unit of NCL at Tongi bscic.

Done

7th Day Wednesday

Study on Dyeing and special types of knitted Done fabrics at dyeing and knitting section at NCL at Tongi bscic.

8th Day Thursday

Study on Sampling at sample section.

25-04-09

9th Day Saturday

Study on Sampling at sample section.

26-04-09

10th Day Sunday

22-04-09

23-04-09

Study on Cutting at Cutting section.

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Done Done Done

27-04-09

11th Day Monday

28-04-09

12th Day Tuesday

29-04-09

13th Day Wednesday

30-04-09

14th Day Thursday

02-05-09

15th Day Saturday

03-05-09

16th Day Sunday

04-05-09

17th Day Monday

05-05-09

18th Day Tuesday

06-05-09

19th Day Wednesday

07-05-09

19th Day Thursday

14-05-09

Last Day Thursday

Were absent because of illness.

Done

Study on Sewing and stitching methods at FAL Sewing Department.

Done

Study on Sewing and stitching methods at FAL Sewing Department.

Done

Study on Sewing and stitching methods at FAL Sewing Department.

Done

Study on Finishing and Packing at Finishing section.

Done

To Learn shipment process and documentation at FAL. Study on Printing at Printers & Printers a sister concern printing unit of Fashion Asia Ltd. . Study Merchandising Process at FAL.

Done Done

Done

Study Merchandising Process at FAL. Done

Study Merchandising Process at FAL. Done

From 19th day to last day of my internship period I worked in merchandising department of Fashion Asia Limited.GM (Marketing &Planning) sir was my Done mentor at FAL.I have successfully accomplished the assignments given to me by my seniors at FAL. I did consumption,costing,operation breakdown for obtaining SMV’s for a garment, etc. during my internship period in Fashion Asia Limited.

13.2 DAILY WORKING HOURS I followed their daily working hours according to their office time schedule. Usually 9am to 6pm is the office time schedule for the employees of FAL. Normally daily working hours are eight hours.

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13.3 ACCOMPLISHMENTS During my Internship program I was given some assignments that have been accomplished successfully. I have done consumption and costing for an enquiry, reviewing merchandising process at FAL.Oneday due to illness of merchandisers I was assigned to reach some samples to the local liaison office of a multinational buying house. I have accomplished the job successfully. 13.4 NEW KNOWLEDGE ACQUIRED During my internship program I realized and acquired practical knowledge on production processs, sampling process, shipment process and mercahandising process.The new knowledge which I got from there that theory doesn’t go all together with real life situation. So to achieve the best we should cope with the situation and manage the work in little bit modification and technical approach.

13.5 HOW EXPERIENCE IMPACTS MY CAREER This one month internship program will help me a lot to work in an apparel manufacturing industry. I feel proud that I had an opportunity to work with a modern structured apparel manufacturing company. I think this experience would be valuable asset for my future career.

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14. CONCLUSION Typically an apparel merchandising program is designed to prepare students to enter apparel merchandising positions in the apparel and textile industry. These positions include various aspects of design, manufacturing, purchasing, distribution, quality control, and the promotion of fashion related products. A degree in apparel merchandising provides students with product knowledge of textiles and apparel as well as an understanding of socioeconomic influences and business skills relevant to merchandising fashion. After a member of the apparel industry has an educational background in apparel merchandising, they could open the door to various career paths. They will have the knowledge to be professionally involved with fashion coordinating, fashion promoting, fashion advertising, fashion display, fashion copyrighting, fashion photography, fashion buying, and store managing. Merchandising is an exciting area of the fashion industry with abundant opportunities for those who commit themselves to their career goals. If anybody choose to become a apparel merchandising MBA graduate, he/she may find entry-level opportunities as a management trainee, assistant merchandiser, visual merchandiser, product development trainee, fashion boutique owner, event planner, fashion forecaster, merchandise planner, fashion journalist, etc. As a Intern-Student I had the opportunity to visit all of the departments and sections of an apparel manufacturing unit. This experience will be my valuable asset for my future career path. In the class rooms we have been thought every thing that is needed for the apparel manufacturing business. With the acquired knowledge when I sent for the internship program in a manufacturing company I had the opportunities to justify acquired knowledge and also gain some practical experience on the subject. Apparel and textile is only sector where processes of production, capacity, machinery, and compliance come first than the product. If we take the example of another product say cosmetic, toiletry, luxuries products, and food products we always consider the product ultimate end items we never think about the process and machinery. What we need a brand name for those products that all for marketing all those products? For these products a strong Brand name and strong product marketing is enough for promoting. But in Apparel and Textile sectors the product comes after process, capacity, and machinery. Although, a Brand name and product marketing existed in this sector, it is not strong enough for Apparels and Textile manufacturer to capture the market. To compete with others a company has to be technologically developed. Otherwise it will lose all the possible market in home ground and international ground.

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15. APPENDIX

LIST OF ABRREVIATION BIFT

: BGMEA institute of fashion & technology.

BGMEA

: Bangladesh Garment Manufacturers and Exporters Association.

BTMA

: Bangladesh Textile Manufacturers Association.

CAD

: Computer Aided Design.

CAM

: Computer Aided Machine .

C-TPAT

: Customs-Trade Partnership Against Terrorism.

CVC

: Cheap Value Cotton.

CVS

: Cheap Value Synthetic.

EPB

: Export Promotion Bureau.

FAL

: Fashion Asia Limited.

GIMA

: Garments Industry Management Academy

HRD

: Human Resource Development.

MMR

: Man Machine Ratio.

NCL

: Northern Corporation Limited.

PPE

: Personal Protective Equipment.

SMV

: Standard Minute Value.

TIL

: Tosrifa Industries Limited.

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