Cost Effectiveness of Knit Garments Products CHAPTER ONE: ORIENTATION OF THE REPORT 1.1 Introduction The present day in the competitive world practical knowledge must be needed. It is possible to gather theoretical knowledge by reading through books but it is not sufficient to acquire practical experience. Dissertation report is an indispensable part of MBA program. It is the bridge of the gap between theoretical knowledge and practical knowledge. I was assigned to the Niagara Textiles Ltd. at the factory Chandra, Kaliakair, Gazipur. To the real production experience in order to enrich smart knowledge. I was stayed in NTL to complete my dissertation. Now a day Textile sector is the biggest sector of my country. About 76% foreign money to my country from this sector. So, it has very importance to study this sector. The economy of Bangladesh is dependent on the sector vastly. At this time the textile sector is becoming faster, and its area is wider. As the demand for better scope increases day by day, Textiles are coming with different innovative ideas. My whole report focuses my Niagara Textiles Ltd. its cost effectiveness of knit garment goods. This subject allows the report maker to be creative and to provide some information that is involved for the first time.
1.2 OBJECTIVES OF THE REPORT The main objective of this report is to have an assessment about the cost effectiveness of knit garment goods on Niagara Textiles Ltd. to show how the organization is providing its product to the buyer and develop the product .In addition , the study seeks to achieve the following objectives. •
To evaluate the performance of Niagara Textiles Ltd.
•
To present an overview of Niagara Textiles Ltd.
•
To provide an idea about the countries knit garments.
•
Fulfill the course requirement of MBA program.
•
To make a bridge between theoretical and practical knowledge.
•
To study about management, workers, and buyer relationship.
•
To identify the problem areas of the organization.
•
To assess financial health of this .organization.
•
To analyze strength, weakness, opportunity and threats of NTL useful for
the
improvements of NTL from current condition .
1.3 SCOPE OF THE REPORT The report has been prepared through elaborate discussion with the employee and buyers. While preparing this report, I had a great opportunity to have an in vast knowledge of management and production activities, especially material utilization, manufacturing and buying activities practiced by NTL. It also helped me to acquire a first hand respective of a respective of a leading export oriented textile organization. During the report preparing period three kinds of topics were emphasized most. They are1. Research lights on NTL 2. The performance evaluation of the knit garments on the basis of qualitative data and in depth analysis. 3. In addition, a wide concept about knit garment market, export and manufacturing of the country. This report leaves its scope not only for NTL to reshape its manufacturing and export related activities but also for new investor of this sector of Bangladesh and abroad to have a general concept about the knit garment market its opportunities and lacking.
1.4 STUDY METHODOLOGY Methods of Data Collection Dissertation this report was prepared on the basis of experience gathered during the period of February 28, 2008 to June 28, 2008. I have arranged group discussion to collect data, Telephone interview and face to face interview them. Also I have followed different record files of NTL.
The purpose of this data has been collected from primary secondary sources for preparing this report.
Primary Sources of Data •
Face to face interview with the responsible officers stuffs.
•
Informal conversation with buyers
•
From practical experience
•
File study
Secondary Sources of Data *Annual report of NTL. * Various books, articles. * Procedure manual. *Official website.
1.5 LIMITATION OF THE STUDY This study is not free from limitations .Some limitations are appended bellow. •
The main limitation of the study is inadequate access to information, which has hampered the scope of analysis of the study. My organization was unable to provide some formatted documents for the study.
•
In analyzing the cost effectiveness of knit garment goods, my sample size is very small.
•
When I am discussing about cost effectiveness only NTL is focused.
•
For time limitations many of aspects that needed more light could not be discussed in the present report.
CHAPTER TWO: Profile of the Niagara Textiles Ltd 2.1 History of the Organization Since 1980 to till date the Apparel sector of Bangladesh has passed through different huddles & obstacles and now has reached a stage where it can compete with all its competitors in price and quality as well as variety. In this scenario; Niagara Textiles Ltd is a vertically set up textiles units which starts from knitting and ships the end product i.e. garments. In short span of time Niagara Textiles ltd has gone from strength to strength to become one of the significant entities into sphere of activity.
The factory is well equipped with modern technology machinery and experience technicians are engaged here to ensure the quality and buyer’s satisfaction. We can produce international standard fabrics of any quantity and quality.
2.2 Objectives of the Organization •
To produce import substitute knit fabrics which will resulted foreign currency savings for the country.
•
To earn foreign currency for the country by exporting garments.
•
To create employment and help to alleviate the national problem of unemployment.
•
To encash the experience of the sponsors in RMG market all over the world.
•
To earn a reasonable return on investment to satisfy both the sponsor and the financier.
Figure-2.1:BOARD OF DIRECTORS Chairman Mohammad Ahsan Habib Vice – Chairman Mrs. Ahsan Habib Directors M.A Bakar Md. Shahinoor Islam Managing Director Md. Nurul Hasan Source: Company Profile 2.3 Management and Organization The overall management of the project will be vested to the Board of Director to decide and formulate polices and provide guidelines for smooth operation of the day to business. The managing Director will act as “Chief Executive” who will look after the business affairs and logistic support of the project, with assistance from experienced persons as and when required.
Figure 2.2 Organgram of The Organization: Chairman
Managing Director Director General Manager Factory Manager
Manager(knitting)
Manager(Dyeing)
Manager(Merchandising) Manager(Compliance)
Manager(Garments) Manager(Electrical
Source: Author Functions of Manager General Manager: To plan, control, organize and control all the sections. Factory Manager: To supervise all section manages. Knitting Manager: To set knitting program according to the buyer requirement and control the Production Officer, Shift-in-Charge to complete knitting in time. Dyeing Manager: To plan the dyeing program according to the buyer required shade. Manager (Garments): Make lay out plan for required gmts design and guide the line chiefs, supervisors and quality controllers to complete gmts in lead time. Merchandising Manager: To negotiate with buyer about gmts price, lead time and design. Compliance Manager: to follow up factory code of conduct i.e. general policy, environment, child labor, recruitment, discrimination, forced labor, harassment of abuse, grievance or complains, compensation and benefits, hours of works, leaves and working condition. Electrical Manager: to follow up all electrical problems in the factory
2.4 The Details 01. Corporate office: 27,Bijoy Niagara
Suite No. C-1(1st floor) Dhaka-1000 Bangladesh Phone # 088-02-9352328, 9340945, 9347303 Fax # 088-02-9353480 E-mail : info@niagaratex.com
02. Factory: Niagara Textiles Ltd Chandra cicle Kaliakair Gagipur Tel: 88 02 9289127, 06822-51233-4 Fax: 06822-51231 E-mail : info@niagaratex.com
03. Total Manpower: 3100 04. Bank Details: Islami Bank Bangladesh Ltd. Shamil Bank of Bahrain E.C Shahjalal Bank Ltd.
05.
Member of: The Dhaka Chamber of Commerce & Industries Bangladesh Knitwear Manufacture & Exporters Association Bangladesh Textiles Mills Association
06. Product Items Textile Division Single /Double Jersey, Single /Double Lacoste, Pique, Waffle, Fleece, Terry, Interlock, , Interlock Pique, Pleated Jersey, Mesh Fabric
Garments Division All kinds of knitted tops and bottom.
07.
Capacity: Textile Division 15000 kg/d
Rib etc. with or without Lycra.
Garments Division 40,000 pcs/day (base on basic items) 08. Area Details : Textile division Knitting-15,000 Sft Dyeing- 40,000 Sft Total
: 55,000Sft
Garment Division Cutting-
10,000 Sft
Sewing-
45,000 Sft
Finishing-
10,000 Sft
Sample room-
1,000 Sft
Office-
3,000 Sf
Store-
6,500 Sft
Bonded warehouse - 20,000 Sft Total
:
1,50,500 Sft
09. Machinery/Equipment Table-2.1: Knitting Circular M/c Profile Machine Type
Brand
Di
Gauge Feeder
a Single Jersey Single Jersey Single Jersey Single Jersey Single Jersey Single Jersey Single Jersey 3- Thread Fleece Single Jersey Single Jersey Interlock Interlock Interlock Rib Rib
Pai-Lung Pai-Lung Pai-Lung Pai-Lung Pai-Lung Pai-Lung Orizio Orizio Pai-Lung Pai-Lung Terrot Terrot Terrot Terrot Pai-Lung
20 21 22 23 24 25 30 30 34 36 34 36 30 30 34
No
Of No Of Prd.Cap/
Needle 24 24 24 24 24 24 24 20 24 24 22 22 22 18 18
60 62 66 68 72 74 90 90 102 108 84 96 100 54 60
1500 1584 1656 1728 1800 1872 2220 1884 2544 2712 4128 4704 4944 3360 3792
M/C
Day
1 1 1 1 1 1 2 2 5 1 1 1 2 1 1
Kg. 200 200 220 240 260 280 300X2 300X2 350X5 400 250 300 300X2 300 300
in
Rib Terrot Rib Pai-Lung Rib Pai-Lung Rib Pai-Lung Rib Pai-Lung Total Source: Company Profile
36 36 38 40 42
18 18 18 18 18
64 72 76 80 84
4072 4080 4056 4512 4752
1 1 1 1 1 25
350 350 450 450 500 8000
Table-2.2: Flat Knit Machine Brand
Origin
Width
Gauge
Feeder
No
Of No Of M/c
Stoll
German
84 Inch
14
6
Needles 1160X2
Kauo
y Taiwan
54 Inch
14
6
760X2
Pro./Day
1
in Pcs 500
26 27
7800Set 8300
Table-2.3: Dyeing & Finishing Section(Capacity :18,000 kgs /day) Machine Type
Brand
Atmospheric Winch M/c Atmospheric Winch M/c Atmospheric Winch M/c Atmospheric Winch M/c Atmospheric Winch M/c Atmospheric Winch M/c Atmospheric Winch M/c Atmospheric Winch M/c High Temp. Winch M/c High Temp. Winch M/c High Temp. Winch M/c High Temp. Winch M/c High Temp. Winch M/c High Temp. Winch M/c High Temp. Winch M/c High Temp. Winch M/c High Temp. Winch M/c High Temp. Winch M/c Source: Company Profile
PMM PMM PMM PMM PMM PMM PMM PMM PMM PMM Dilmenler Dilmenler Dilmenler Dilmenler ACME ACME ACME ACME
Origin
No
Of Capacity/
Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Turkey Taiwan Taiwan Taiwan Taiwan
Machine 03 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01 01
Day
in Kg. 25X3 100 200 300 400 600 750 800 025 300 025 150 300 450 050 600 1200 1500
Table-2.4: Dyeing Finishing M/c Profile Machine Type
Brand
Origin
No Of Machine
Capacity/
Sleeting
& Bianco
Italy
01
in Kg. 15000
Dewatering Dewatering
Or Heliot
France
01
6000
Squizing M/c
Day
Dewatering
Or Beneks
Squising M/c Dryer M/c Stentering M/c Compector M/c Compector M/c Compector M/c Back Sewing M/c
PMM LK & LH Tube Tex Serteks Bianco Tuana
Turkey
01
5500
Turkey Turkey USA Turkey Italy Turkey
01 01 01 01 01 01
7000 12000 8000 5000 10000 7000
09
75,500
Total Source: Company Profile
Table-2.5: Dyeing Laboratory M/c Profile Machine Type
Brand
Spectophotometer Spectra Flash Lab Sample Dyeing M/c Lab Sample Dyeing M/c Washing M/c Colour M/c Cabinet Tumble dryer M/c
Datacolor
Rubbing Crock Meter Source: Company Profile
Roaches
Origin USA ,, Swiss Hong Kong
Ahiba Nuance Fongs Wascator Vari Vide Ariston
No Machine 01 01 01
England England
01 01 01
England
01
Sewing Section(Capacity :40000 pcs/day) Table-2.6: Sewing M/cs Machine Type Overl ock Overl ock Overl ock Flatlock Flatlock Flatlock Button Hole Button Stitch Snap Button Peaconting DFD PMD Fit Of The Arm Re - cone Rib Cutting Back Tape Bertake Computer
Brand Pegasus Yamata Juki Pegasus Yamata Juki Juki Juki Nagishing Juki & K Kansai Kansai Juki Hashima IDEA Kansai Juki
Origin Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan Japan
No Of Machine 192 21 05 89 05 22 11 14 04 02 01 02 02 02 07 02 02
Of
Two Needle M/c Juki Fusing M/c Hashima Plain Juki Source: Company Profile
Japan Japan Japan
02 01 413
Garments Division Cutting Section (
Capacity 10000Kgs./ Day )
Table-2.7: Cutting M/c Profile Name Of Machine
Brand
Cutting M/c KM Cutting Table Local Source: Company Profile
Origin
No Of Machine
USA Bangladesh
09 08
Finishing Section: (Capacity : 35,000 pcs/day) Table-2.8: Finishing M/c Profile Machine Type Iron Machine Electronic Steam pressure Electronic Steam remover Finishing table Thread Sucker Thread Sucker Thread Sucker Metal Detector Metal Detector Source: Company Profile
Key Clients of NTL •
New Look
•
SF Denim
•
Regatta
•
Us Polo
•
Bigstar
Brand Modern Naomoto Veit Naomoto NGAI SHING Modern Aatpr Cintex Lock
No Of M/c 39 03 12 03 01 01 01 01 01
•
Okaidi
•
Banex
•
Turag
•
Libas
•
Tema
•
H&M
•
ZXY
2.5 Future Plans •
The industry has consolidated its combine quality with sound sensitive styling strategies for competitiveness such as ; improving lead time ; manufacture of highvalue products; promoting investment in dyeing ; finishing, printing and apparel and textile manufacturing; and upgrading of skills, design equipment.
•
An Electronic Data Interchange (EDI) system was recently installed to reduce processing time from hours to minutes.
•
As part of its strategies for increased competitiveness, the industry is conducting an aggressive marketing campaign.
CHAPTER THREE
LITERATURE REVIEW 3.1 Literature Review Naresh k. Malhotra(2004) proposed for the cost effectiveness the following points 1.Executive summary: the summarize of total task. 2.Background to the problem including the environmental context. 3.Problem definition : A statement of the problem including specific components 4.approach to the problem: At a minimum a review of the relevant academicand literature should be prented . If research question and hypotheses have been identified then this should be include in the proposal. 5.Research design: Exploratory, descriptive and causal research 6.Field work or data collection: proposal should be discussed how the data will be collected and who will collect
7.Data analysis: The kind of data analysis that will be conducted and how the results will be interpreted should be discuss 8.Reporting : Form the final report 9.Cost and time :By using PERT & CPM 10.Referance and appendices Kenneth C. Laudon*John L. Graham have discussed how to establish the computerized management information system and its benefit . For example : To implement computer sharing system a manager can see all the sections the condition of work . Here a manager need not go to each section to get all information and in this time he will do other work . The another steps if management implement employees card punching system in time , out time and record working time and payment system. The other system is close circuit camera setting up . If it is established in the organization all of the employees will know the fact and he will be attentive on his work. To establish these system time is saved , production rate will be high and wastage rate will be low. so cost will be effective Mr. Nur -A- Alam Siddiqi (2008) have discussed manager , management process, skill/ quality, types on effective managerial management the workshop of activity, ineffective manager, effective manager, the elements of group decision making and problem solving process etc. If the planning, organizing, stuffing and controlling process is good the management will be sound and all activity will be smooth. To increase productivity a management need man, material , machine , and method. Utilizing properly these technology the cost may be effective. Adolph Matz and Milton F.Usry( 2002) Cost concepts and terms have developed according to the needs of accountants, and engineers. Accountants have defined cost as “an exchange price, a forgoing, a sacrifice made to secure benefit. In financial accounting, the forgoing or sacrifice at date of acquisition is represented by a current or future diminution in cash or other assets.’’ When the term “cost’’ is used specially, it should be modified by such descriptions as direct, prime, conversation, indirect, fixed, variable, controllable, product, period, joint, estimated, standard, sunk, or out of pocket. Each modification implies a certain attribute which is important in measuring cost, and which may be recorded and accumulated for assigning costs to cost CHAPTER FOUR: Findings and Analysis
4.1Textile Technology There are four technology of textile technology. They are the 1. Yarn manufacturing technology 2. Fabric manufacturing technology 3. Dyeing or wet processing technology 4. Garment manufacturing technology
Yarn Manufacturing Technology To manufacture export quality yarn my country depends on foreign country such as USA, Egypt , India, Pakistan, Uzbekistan, Kazakhstan, because of my country’s cotton fiber staple length is so short . It is not able to manufacture quality yarn . Foreign country’s fiber’s staple length about 2.5 inch but my country‘s fiber’s staple length .5 inch . With this cotton fiber we can make lower quality yarn that which use to make gamsa, lower quality lunge etc. The spinning mills purchase cotton , process and manufacture yarn .
Yarn Manufacturing Process: Firstly the bell is opened by bell opener then after by beating the fiber is opened and dust free , after removing dust the fiber is made lap or chute mat . The lap or chute mat is fed into carding and made sliver . The sliver is fed into drawing and made draw sliver . If I want to make combed yarn the sliver is fed into lap former and made lap . This lap is fed into comber and made combed sliver . But , if want to make carded yarn then need not combing action, from drawing sliver into simplex and made roving . For combed yarn lap forming and combing action is excess process from carded yarn . Combed sliver and draw sliver are fed into simplex and made roving . Roving is fed into ring and made yarn. This yarn is winded in to cope .Cope is fed into cone winding m/c , the yarn of ring cope is winded to cone. Finally the yarn is cone form.
Figure-4.1 Flow chart of spinning mill Input
Name of m/c
Fiber
Blow room
Lap
Carding
Output Lap/ Chute mat Sliver
Sliver
Drawing
Sliver
Sliver
Lap former
Lap
Lap
Comber
Sliver
Sliver
Simplex
Roving
Roving
Ring
Ring cope
Ring cope
Cone winding
Yarn in cone form
Source: Create by Author
4.2 Fabric Manufacturing Technology There are three types of fabric technology they are the knit fabric, woven fabric, and felt fabric here I shall discuss knit fabric. After getting a order from buyer a merchandiser submit a order shit to knitting section for fabric . To get order shit knitting manager do the planning and select yarn count, machine dia, stitch length, fabric design, needle and cam arrangement, needle setting and cam setting. After preparing all the preparation to bring yarn from yarn store a operator feed yarn to m/c creel, through various device yarn is fed to M/c’s needle pull the yarn and form loop with intermeshing. In this way thousand of loop is formed and fabric produced. This fabric winds in the take up motion roller when the fabric is15 kgs to 25 kgs then fabric is taken from roller . After weighting the fabric is brought fabric inspection m/c and inspected. During the inspection all the fault is identified. The 4 point system is applied in the inspection.
Figure-4.2: Fabric Manufacturing Process Yarn Rib
Interlock
Single jersey
Flat knit
Source: Create by Author
Gray fabric
Inspection Fabric Storing
4.3 Fabric Inspection Process In 4 point System Various gray fabric faults •
Fabric hole
•
Sinker mark
•
Oil stain
•
Loop
•
Lycra out
•
Missing yarn
•
Yarn contamination
•
Slub
•
Naps
•
Star
If Fabric Faults length is within 0 inch to 3 inch the point = 1 3 inch to 6 inch the point = 2 6 inch to 9 inch the point = 3 Hole < 1 inch
the point = 2
Hole > 1 inch
the point = 4
Calculation Formula Total points X 36 X 100 Roll length in Yards X Actual width
Acceptance Up to 20 points fabric is “ A” Class
20 to 30 Points fabric is â&#x20AC;&#x153; Aâ&#x20AC;? Class Above 30 points fabric is rejected To prepare internal delivery challan knit section send fabric to grey fabric store . .
Figure-4.3: Dyeing process Fabric Inspection Fabric Turning Baching Scouring Bleaching Dyeing Enzyming
Washing Hydro extractor Drying / Stentering Fabric Turning Compacting Finish Fabric Inspection Source: Create by Author
Folding & Packing
4.4 Dyeing or Wet Processing Technology Batch Section
Batch section in the dyeing section this section demands to grey store section according to requirement then grey store give it fabric . Batch section make batch and send to dyeing section .After batching dyeing section inspect and turn the fabric then after feed fabric into the m/c .
Scouring The main function of scouring is to remove oil, wax, pectose, hard dust etc. wetting agent, washing agent and caustic soda uses in this process . This apply only cotton fabric. High temperature is needed in this process. Proper scouring fabric absorb water at once. Then we sure it is completed.
Bleaching Bleaching function is to remove natural color from the fabric. In the conventional system sodium hypo chloride is used in the process . But in the modern technology hydrogen per oxide is used. It runs until remove natural color. In high temperature m/c it is processed .When natural color is removed then the process will be finished.
Dyeing When to need dyed fabric from grey fabric then we dye fabric according to required color. At first lab dye 5 grams fabric to ensure actual shade . After ensure this lab submit a recipe to dyeing section . According to lab recipe dyeing section treatment the fabric within actual shade . There are many dye stuff use this process such as direct, reactive, napthal, acid, vat, vegetable, sulphar , pigment etc. According to fabric
character is to select dye stuff.
Temperature is variable . For cotton need temp. 80 degree c. polyester need temp. 150 degree c. viscose 60 degree c. To dye soda, salt, wetting agent , leveling agent, anti creasing agent , dye stuff, softener, acid , per oxide killer , water etc.
Enyming To remove haireness is needed this process. Here enzymetic agent , stabilizer, Souring agent are used in this process.
Washing After dyeing and enzyme start washing here washing agent and water is used . After proper washing it is finished.
Hydro Extractor The dyed fabrics are loaded on the hydro extractor, where a perforated rotating device removes water from the fabrics by the action of centrifugal force. This is followed by untwisting or rope opening of the fabric.
Drying Knit fabrics drying is a delicate task can be done by means of a vertical tube drier. To dry fabric it is processed. There are two drying process tumble and line dryer.
Compacting Steam setting is done to correct the loops level and shape changes which frequently occur in circular knit products. After steam setting, the fabrics passes through the mangle roller equipped with air pressurization system firs width of the fabrics be adjusted. It is also a calendaring process; the fabric is steamed and ironed at the same time. After calendaring, the fabric is folded and is ready for garments manufacturing.
Finish Fabric Inspection After finishing the fabric it is inspected . 4 point system is also applied to this process.
Folding and Packing The m/c which is inspected it also fold the fabric . After folding it is packeted by poly packet and stored .
Garment Technology The last step of textile technology is garment technology. Here garment is made by fabric. Knit Garments section uses knitted dyed fabric which is produced in the factory. as per design, then the cut portions goes for sewing, and final products are checked and go for ironing. Then the products are tagged and packed. The flow process chart is given below:
Figure-4.4: Garments Flow Process Fabric
Cutting Sewing Checking Ironing Tag setting
Checking Packing Exporting Source: Create by Author 4.5 Details The Garment Flow Process Chart Fabric Fabric is the main material of garment process . According to required garments fabric knitting section made it . Sewing thread, button, twill tape, contrast fabric, zipper, main level, care level, size level, lining, inter lining, fusing, piping, etc. are used in garments process. Garment section give requisition to fabric store according to requisition give fabric to garment section.
Cutting To gate fabric cutting section lay out according to marker and design . After laying out this section cut the fabric with requirement. Here cutting m/c, cutting table, metal gloves, are used there. After cutting fabric it is sent the sewing section.
Sewing: Here cutting fabric is sewed according to garment type and m/c lay out planning . various m/c and material are used in this section such as sewing m/c, fabric, sewing thread , button, twill tape, contrast fabric, zipper, main level, care level, size level, lining, inter lining, fusing, piping, etc. are used in sewing section.
Checking : Sewing garments are checked or inspected in checking section .If Identify the fault of the garments they send to correct the garments. If possible to faultless it is used or not it is useless. This section send faultless garment to the ironing section.
Ironing Here it is used steam or without steaming iron . After ironing this section send it to final inspection section.
Final checking After final checking or inspection this section send this garment to packing section . According to buyer requirement packet system.
Packing According to buyer requirement of packing system packing section prepare packing of garment. Poly bags, hanger , paper board, carton, gum tape , etc. are used in this section.
Exporting After inspection, final inspection the garment product is exported in schedule time . According to business condition it is completed . The garment factory make reach to sea port. If one day late buyer deduct 5% price from conditioned price. If two days late the factory is to send by air for H & M buyer.
Materials Direct materials are all materials and trimmings which go into the construction and finish of the garment. Typically, these materials would include cloth, lining, fusible, buttons, zips, pads, tapes, labels, tickets, hangers and packaging materials, etc. Also known as consumables, this element contains all the materials not directly connected to the make-up of a garment. Some of the typical items involved are office materials, spare parts, marker paper, maintenance materials, chalk and pins.
Utility The factory is running by power from Rural Electricity Board such as PDP and Palli Bhittutayon board or gas based power generator. For water supply a deep tube well , compressor m/c for air , boiler for steam , gas generator for electricity are used to get butility.
Transportation There are many transport system are in NTL such as Truck, pick up van, Car, motorcycle, micro bus , manual driven van , trolley etc.
for its own use and for carrying for raw and
finished goods to and from the factory. The factory is adjacent to the highway and facilitates all kinds of road transportation..
4.6 Marketing 1779 is the textile revolution period . Starting from the industrial revolution Japan, south Korea, developed economic condition . The main strength of textile industry is cheap labor cost and available fuel . Bangladesh has these element available. Industry has established in
Bangladesh.. Here labor cost is low, and gas is available. So, it possible to create vast garment market. By hook or by crook need to keep this condition and developed day by day.
The garment export market is highly competitive on worldwide basis, because of its low investment as well as low technological characteristics. The growth potential of the industry is tremendous with prospect of product diversification, exploring new markets and upgrading to gigs value fashion items. The industry is already contributing substantially to the national earning. With steps taken for ensuring more value addition by developing local fabric and accessories, this sector is expected to become the largest foreign exchange earn for the country.
World Market USA , Canada, Hong Kong , Japan, Australia , European Countries, are the major importers . Other hand the main exporters country is South Korea, Taiwan, Thailand, Philippians, Brazil, India, Pakistan, Srilanka , Hong Kong and Singapore .
Promotional activities The present trend or practice is a bilateral agreements between manufacturers and buying houses. These buying houses are representative of large scale international garments distributors or sellers. These buying houses place orders with garments manufacturers according to their principalsâ&#x20AC;&#x2122; specifications. Promotions of garments wear will therefore; entail sending samples, brochures, participation in expositions/exhibition visits to the foreign buyers, participation in foreign seminar Symposium etc.
Product Price: The knit garment price is on the basis of fabric composition, fabric design, fabric weight or gsm, required yarn type , fabric composition, size , garment type etc. Raw material changes price will change the selling price of garment product .
Table-4.1 Export Status and Material Utilization in 2006 Buyer
Buyer
Factory
req
req gmt loss
gmtqty
qty
in pcs H&M 2856763 Signet 631199 S.FDenim 392746
Process
in gmt
pcs 3039110 701333 409111
6% 10% 4%
Req
Req
Req
in Finished
Grey
Yarn in In
Fab
in Fab
kgs 942729 222497 131232
in kgs
kgs 1071283 247219 144211
1071283 247219 144211
Process Dyeing 12% 10% 9%
S. Tex 1122133 1168888 Banex 473399 525999 Source: Create by Author
4% 10%
354347 161310
412032 185414
412032 185414
14% 13%
Table-4.2:Export Status and Material Utilization in 2007 Buyer
Buyer
Factory
req gmt req qty H&M
gmt loss
in qty in pcs
pcs 4180991
Process
4401014
3 ZXY 264062 293402 Sag Fas 177875 183376 New look 620547 660156 Weave Int 233429 245724 Banex 505019 56113 E. Bangla 140833 146701 S. Tex 809792 843533 Source: Create by Author
Req
Req
Req
in Finished
Grey
Yarn in In
in Fab
in kgs
Process
gmt
Fab
Dyeing
5%
kgs 1332498
kgs 1480554
1480554
10%
10% 3% 6% 5% 10% 4% 4%
86859 56137 197653 71917 166118 44416 241206
98703 61689 22083 82664 188770 49351 283772
98703 61689 222083 82664 188770 49351 283772
12% 9% 11% 13% 12% 10% 15%
4.7 Material Utilization After research, Reporter has established that approximately 85% of materials purchased are in finish garment, with the remainder for one reason or another ending up as waste. This figure is called the materials utilization percentage and it is crucial cost factor in the price of a garment. Materials generally comprise about 50% of the cost price of a garment with labor representing approximately 20%. So an improvement of, say, 5% in materials utilization is worth far more than a 5% reduction in production time. Whilst the pattern cutter can not personally excess materials usages in the cutting room, there are a number of procedures which can be employed to ensure that the garment pattern makes the minimum possible demands o1n materials requirements.
4.8 SWOT ANALYSIS OF NIAGARATEXTILE LTD 1. Strengths •
NTL is 100% export oriented knit composite Mill . It has strong reputation on the world knit garment market.
•
Strong network through the in home and abroad
•
The working environment is excellent
•
Provides high quality products to each level of customer
•
Highly sophisticated machinery is in the all section
•
Insurance facilities of all the employee
•
100 % compliance factory
•
Maintain COC
•
NTL placed 7th position within top 10 compliance factory selected by BKMEA in 2008
•
The corporate culture of NTL is very much interactive compare to the other business organization.
•
Job security is high
2. Weaknesses •
NTL does not have any effective plan for marketing
•
It does not has computerized management information system(MIS)
•
The entry level and mid level officers are given lower remuneration packages than other textiles
•
There is very little practice for increasing motivation in the workers by the management
•
Many staffs and line people are non - technical background.
•
RND and HRD are not effective
Opportunities •
NTL can pursue diversification strategy in expanding its current line of business
•
Enter new markets segments in different country
•
Expand product to meet broader range of customer need
•
More export for quota free world
•
Changing buyer perception as number one knit garments in Bangladesh
•
Possible to develop RND and HRD
Threats •
Competitors are innovating new design and fashion for fashionable people of the world. Therefore NTL go should go for continuous fashion innovation to gain temporary advantages over its competitors
•
Quota free business is challenge for the company
•
Skilled and technical person is required for making quality garments product
•
Cost effectiveness is essential to survive in the world knit garment market
•
Present political environment
•
Un stable government of Bangladesh
4.9 Major Findings NTL has most positive sides
but followings are those problematic sides that needed
recommendations for ultimate solutions. The reporter hopes that these findings will be taken seriously and feels that these will help NTL to make cost effectiveness in better way.
1. Lack of speed, Skill and co-ordination NTL has the lack speed, skill and co-ordination among knitting ,
grey store, dyeing,
garments section. These sections need skilled and speedy technician, operator and workers.
2. Employees do not have adequate knowledge about their technical work. Employees need to have adequate technical knowledge to perform all of the technical works. Without these knowledge all the work will not be successful.
3. NTL motivations level is very low. Any organizational motivation level will be very strong and effective. For this education , training and development program have to increase.
4. Line and stuff relationship is not smooth Line means who are directly related in production of NTL but stuff means who are indirectly related in production for example in NTL knitting, dyeing , garments manager, production officer, supervisor, operator and helper are line but time section, security, admin are stuff. Most of the organization have this problem line thing our activity is more essential than other but stuff thing we are the best person in this organization and we maintain all the section. Management has to remove this problem as possible as soon.
5. Each single employee has a feeling of dissatisfaction about his/her salary and other benefits 6. Employee turn over rate is very high. Employeeâ&#x20AC;&#x2122;s turn over rate has to decrease as possible because old employee is well known of this organizational environment but new employee has no this knowledge . New employee has to give organizational knowledge and need much time. Here time wasting . So take step to decrease this rate.
7. Employee feels, they have no job security. Employee feels, they have no job security. This idea has to give up from their thinking . If this idea is to an employee he always frustrate so it is harmful for work .
8. Working environment is not safety for employee Management has to give more safety environment as if they can do the work independently .
9. Lack of training and development Management has to take step to increase training and development program if who can make trained and skilled employee they will get good work from employee other wise not. So it is essential to give up the lack of training and development.
10. Lack of relationship between top to mid and mid to lower level management. Mid level management is the bridge between top level management and lower level management. Mid level management always nearly control to the lower level management. they observe their problem , merit and de merit side. Mid level management should inform their condition to top level management. If they do not inform these it is harmful for organization. So it is essential to establish relationship between lower level management and top level management. Other wise many problem have to face top level management .
Chapter Five: Recommendation and Conclusion 5.1 RECOMANDATIONS I have short knowledge as a reporter It is not wise to recommend NTL with this little experience. The reporter in this part has just taken the freedom of disclosing his own views and thoughts. It is notable that the following recommendations are based on analytical observations: 1. Top management should work on interpersonal relationships among employees. If these relationships become more harmonized, the rate of co-ordination co- operation will rise. Other wise harmful for organization. 2. The authority should take necessary steps to innovate fashion design. The authority should take necessary steps to innovate fashion design to attract rich buyer. authority should develop design , quality, exceptional fabric design. Has to give gift different sample . . 3. Off- the job and on-the job training should be given to the employees 0n â&#x20AC;˘
Technology
•
Quality
•
Motivation
•
Communication skill
•
Supervisory management
4. Employee must put into challenge so that they feel exited and treat themselves important. It will increase their working interest and improve their product. Continuous monitoring and strictness may help improve their quality product. 5. salary of the employees should be given in time. The salary of the employees should be given in time. The employees expend many after getting salary. If they do not get salary in time they do not fulfill their needs their mentality is not ok . Many bad thinking come to their heart so they cannot do good work . 6.The employee turnover rate should be reduced as possible as quickly The turn over rate is so low the good news is for company . Previous experienced person is a strength for company . If spread in which company employees do not stay long time then new person will not come to do the job . It will be bad effect to the company. 7. The authority should make realize the employee that this organization is their organization . The authority should take steps to establish in their mind that company is their company . If it is established the employee will do well for company. The following points which will improve •
Fault rate will be decreased
•
High quality
•
Decrease worker unrest
•
Effective cost
•
High productivity
•
Production high
5.2 Conclusion During my dissertation report period on cost effectiveness of knit garment products in Niagara Textiles Limited . I have closely observed this organization. I tried my best to make how
the cost will be effective . Some findings and recommendation have been include in
this report then apply how will be solve the problem. Problem means product and price are constant but have to be maximum profit. Here a way has opened to me that is process loss
minimization. Some effective guide line is included in this report. I hope that my realization will be helpful to most of the textiles researcher. It is evident that to make cost effectiveness of gmts product to the highest desired level automation is a must. NTL has adopted R& D, P M D, and H R M, to continue its cost effective functions very smoothly.
BIBLIOGRAPHY Annual report of Niagara Textiles Ltdâ&#x20AC;? Edition 2007 &2006: Annual report of Economical Survey Edition 2007 Cost Accounting Eight edition 2002: Adoph Matz and Milton F.Usry Introduction to clothing manufacturing Second Edition:Grey Cooklin Official website of Niagara Textile Ltd Profile of Niagara Textile Ltd Edition 2007: Niagara Textile Ltd Problem in operation research Edition, 2005: Prem Kumar Gupta & Dr. D.S Hira