Project Report on Manufacturing Process at Theme Export Pvt. Ltd. by Shreya Tewari

Project Report on Manufacturing Process At

Submitted to: Mr. Bhaskar Das, Mr. Gaggan Bhatia and Mr. Mahboob Anwer School of Creative Business Pearl Academy, New Delhi

Submitted by: Niyati Matta, Shreya Tewari and Himali Lalwani B.A. (Honors) Fashion Business Management Level: 1 2014 â&#x20AC;&#x201C; 2018

Submitted on: 2nd May, 2016

Acknowledgement The success and final outcome of this project required a lot of guidance and assistance from many people and we are extremely fortunate to have got this all along the completion of our project work. At this juncture we feel deeply honoured in expressing our sincere gratitude to our mentors Mr. Bhaskar Das, Mr. Gaggan Bhatia & Mr. Mahboob Anwer for their guidance and constant supervision as well as providing us with the relevant information as and when required to help us complete the project on time. We are grateful to Theme Export Private Limited for taking out time from their hectic schedule to give us a glimpse of the export house and letting us experience the practical world of business. We would also like to pay our regards and thanks to the library faculty at Pearl Academy, New Delhi for providing us with constant and all possible support whenever requested for. Lastly, we thank all our family members and friends who have been constant source of support during the preparation of this project work.

Table of Contents

S.No.

Particulars

Page No.

1 2 3 4 5 6 7 8 9 10

Aim of the Project Introduction to an Export House Payment Terms Followed in the Garment Manufacturing Industry Shipping and Documentation at an Export House Quality Inspection at an Export House Introduction to Theme Export Pvt. Ltd. Departments at Theme Export Pvt. Ltd. Process of Garment Manufacturing at Theme Export Pvt. Ltd. References Annexure

4 5 6 7 8–9 10 – 13 14 – 27 28 – 42 43

Aim of the Project The aim of the project is to understand the manufacturing process of garments in an export house. The project has been made to study the process by selecting an export house and then further selecting 4 different ongoing styles being handled by the factory and studying their manufacturing process starting with the first stage of meeting with the buyers and ending on the shipping of the goods.

(1) Introduction to an Export House An Export House acts as an intermediary that specializes in facilitating transactions between home country and foreign countries. An export house is an exporter, importer and also a trader that purchases and sells products for other businesses (Investopedia). Several processes are involved in the manufacturing of garments at an export house. Here is a flow chart depicting the transition of a style from design to dispatch.

Inspiration

Fit Sample Making

Fabric order for bulk

Cutting

Sewing

Design

Issue of Purchase Order

Getting Fit sample Approved

Order File to the Production Department

Washing

Receipt of Techpack

Cost Negotiation and Closure

Bill of Material Draft for Production

Approvals on PP Sample

Finishing

Bill of Material (For Sampling)

Getting Approval of Proto Sample

Pre- Production Sample

GPT and FPT

Inspection

Pattern Making

Proto Sample

Order Approved for Production

Raw Material Inspection

Shipping

Raw Material Procurement for Sample

Raw Material Inspection

Getting Approval on Size set

Raw Material Procurement for Bulk

Garment Manufacturing Process in an Export House; Source: Author

(2) Payment Terms Followed in the Garment Manufacturing Industry Payment Terms in any business is a major part of sales contract. Terms of payment in exports and imports plays an important role in international business. There are two kinds of payment terms.

2.1 Letter of Credit Letter of Credit is a document from a bank (issuing bank), assuring that an exporter (beneficiary) will receive payment up to the amount of the letter of credit as long as certain documentary delivery conditions have been met. In a situation where the buyer is unable to make payment on the purchase, the beneficiary may make a demand for payment on the bank. The bank will examine the Beneficiary's demand and if it complies with the terms of the letter of credit, will honor the demand. It is of two types:

Letter of Credit

LC at Sight

Usance

2.1.1 Letter of Credit at Sight: At sight LC causes payment to be made immediately to the exporter upon presentation of the correct document from the exporter. 2.1.2 Usance LC: It is a credit that is not paid immediately after presentation, but after an indicated period that is accepted by both buyer and seller. This is situation where seller allows buyer to pay after agreed usance period on the basis of acceptance of documents and confirmation of the payment date (export.gov).

2.2 Telegraphic Transfer Here, the buyer sends the payment through their bank to seller’s bank immediately on the receipt of all the documents as per order. In case of TT, it is commitment between buyer and seller only not between any banks (export.gov). Documents required:     

Financial documents — Bill of Exchange Commercial documents — Invoice, Packing List and Certificate of Origin Shipping documents —Bill of Lading, Airway Bill Official documents — License Insurance documents — Insurance Policy or Certificate

(3) Shipping and Documentation at an Export House It is the documents issued by the shipping line/ airline giving acknowledgement of receipt of goods for delivery from place of dispatch to final destination. ď&#x201A;ˇ

ď&#x201A;ˇ

Freight on Board (FOB): Free on Board and risk passes to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. It is used for sea or inland waterway transportation. It means delivery up to port of dispatch. (Incoterms2015) Cost, Insurance and Freight (CIF): The seller pays the costs of bringing the goods to the specified port. They also pay for insurance. The buyer is responsible for risks when the goods are loaded onto the ship. (Incoterms2015)

(4) Quality Inspection at an Export House Quality Inspection are measures aimed at checking, measuring, or testing of one or more product characteristics and to relate the results to the requirements to confirm compliance. This task is usually performed by specialized personnel and does not fall within the responsibility of production workers. Products that don't comply with the specifications are rejected or returned to improve. (Ceopedia)

4.1 Fabric Inspection Inspection or reviewing of raw materials (like fabric, sewing threads, buttons, trims, etc.). It is an important aspect followed prior to garment manufacturing to avoid rejects due to fabric quality and facing with loss in manufacturing. 4 point system is used to examine a fabric Four Point System It is used for determining fabric quality. The 4-Point System assigns 1, 2, 3 and 4 penalty points according to the size and significance of the defect. (Textilelearner) In this system, one should inspect at least 10 per cent of the total rolls in the shipment and make sure to select at least one roll of each color way. Fabric defects are assigned points based on the following: Size of defect 3 inches or less Over 3 but not over 6 Over 6 but nor over 9 Over 9 inches

Penalty 1 points 2 points 3 points 4 points

4.2 Garment Inspection The inspection done to control the quality meaning examining the products implying to examine the fabric, sewing, button, thread, zipper, garments measurement according to desired standards for the production. There are so many facilities for inspection in every section of garments industries. The aim of inspection is to reduce the time and cost by identifying the faults or defects in every step of garment making. (Textilelearner) For garment Inspection AQL is used. As most of the acceptance decisions of the apparel shipments for the export market are made on the basis of AQL based sampling plans. AQL means Acceptable Quality Level. In any business process, before accepting the finished goods from the manufacturer buyer do inspection of goods. It is an important factor in export garment sector. Buyers do inspection of goods as randomly process. If AQL pass that means goods are in acceptable quality level he gives certificate to ship the goods. The AQL level

varies process to process, product to product and even buyer to buyer. In the following table a plan is given for final shipment inspection. (Textilelearner) Lot or Batch size

Sample

size Code

Size

Acceptable Quality level 2.5

Letter

4.0

6.5

2–8

9 – 15

15 – 25

26 – 50

51-90

91-150

151-280

251-500

501-1200

1201-3200

125

3201-10000

200

10001-35000

315

AQL – for Garment Inspection; Source: www.textilelearner.com

(5) Introduction to Theme Export Pvt. Ltd. Theme Exports is a government recognized star rated export house established in 1997 in New Delhi, India, by two friends Nandani Singh & Ratna Singh. What started as a small studio project with a vision to take Indian embroidery traditions to the world is now the goto manufacturing cell for the crème de la crème of international design.

Nandani Singh and Ratna Singh; Source: www.themeexport.com

Bringing together the vast variety of techniques and traditions that the country has to offer, under one roof, their product range including apparel, accessories, jewelry and home furnishings working with clients all over the world in the US, UK, Italy, France, Spain, Turkey, UAE and India.

5.1 Product Range Their idea is to “Create something beautiful, one piece at a time”. Their product range includes apparel from casual to party wear, fashion accessories from bags, belts and scarves to precious semi-precious and costume jewellery, as well as hard goods and home furnishings. Each product is a labor of love, produced with the finest stitching and craftsmanship, and keen attention to the finesse of execution. With over 20,000 products and precious embroidery swatches, the design archive has been collected painstakingly over the last 18 years, with hidden treasures and inspirations in every corner.

Apparel Womenswear & Kids wear Accessories Bags, Belts, Scarves, Hair, Leather

Home Furnishing, Hard Goods, Ornaments Jewellery Silver & Semi-precious, Costume

Product Range at Theme Export; Source: www.themeexport.com

5.2 Techniques They take inspiration from myriad cultural tones, moods and needlework techniques, indigenous to each region of India and take them one step further through a process of innovation and fusion, giving birth to the unique design signature.

AARI

Bandhani

Bead and Sequin Embriodery

Block Printing

Chikan

Crochet

Embriodery on Leather

French Knots

Bead and Sequin Embriodery

Knitting

Schiffly

Soutache: Dori, Ribbon & Gota

Techniques; Source: www.themeexport.com

5.3 Facilities The in-house production units spread over an area of 150,000 sq. ft. across different facilities, ensuring the highest confidentiality and design protection of the clients. Each facility is ergonomically designed to best suit the needs of different types of product runs, from standard operating procedures to workplace engineering and balanced capacities, ensuring efficient delivery with the highest standard of quality across each product segment. Each facility is equipped with the latest equipment, keeping pace with technological development. 

Designer Apparel Manufacturing With a focus on very fine stitching and detailed attention to quality, the Designer Apparel facility is an extension of the sampling unit and manufactures customized small volume orders for designers, as well as luxe collections of mid-segment retail brands.



Mid-Segment Apparel Manufacturing With an assembly line operation and Industrial Engineering base, this facility services larger runs of mid-segment apparel brands. Its unique composite floors, where the entire cut to pack operation is organized at a vertical, are targeted at decreasing product handling and quality, time and communication loss.



Accessories, Jewellery & Home Furnishing Non-apparel facility has specialized craftsmen dedicated to creating exquisite product using a versatile range of techniques from leather workmanship to metal casting and electroplating to precious and semi-precious work.



Embroidery The cornerstone is an embroidery facility, specializing in different embroidery techniques including hand as well as machine embroideries.



Machinery 1. Single & Double Needle Sewing Machines 2. Under Bed Trimmer (UBT) & Button-Hole 3. Flatlock & Overlock Sewing Machines for Knits 4. Knitting Machines 5. Leather Sewing Machines 6. Straight Knife & Band Knife Cutting Machines 7. Jewellery Casting 8. Electroplating & Rhodium Plating 9. Chikankari, Ari & CD Embroidery Machines 10. CAD-CAM system for Pattern & Embroidery 11. Digital Printer

5.4 Quality Management They are producing only the highest quality of product with the finest workmanship and skill that the country has to offer. In line with this, Total Quality Management (TQM) forms the cornerstone of the operations in each facility, ensuring the strictest controls at each step of the manufacturing process, from raw material to final product inspections, including 

 



Raw Material 4-point inspection system for large volumes of fabric 100% checking for small volumes of fabric and all accessories Embroidery 100% pre-delivery quality audit Sewing: In-line & end -line checking and 100% pre-delivery audit Traffic Light system to control quality at needlepoint Final Product Double QC Audit of all final products at finishing stage. In addition to quality management, they have borrowed a page from Toyota’s Lean Management principles including hoshin kanri (waste reduction) and implementation of a robust visual management system, in order to increase efficiencies and provide a more competitive service to the clients.

(6) Departments at Theme Export Pvt. Ltd. Garment export houses. like Theme Exports, take orders from buyers or buying agencies and process the order in a factory to produce finished products. To process an order, from sourcing of raw materials to cutting to stitching to packing to dispatching goods to buyers, materials are passed through many hands (Garment Export House). To make garments ready to ship with desired quality and on time delivery, garment manufacturers need to establish various departments based on the activities. Each department performs number of activities. There is no fix number of activities and activities of department depend on the organization size and major processes involved in export order processing (Sarkar, P., 2013). An Export house performs the following functions:  Marketing  Merchandising  Sourcing  Sampling  Production  Quality Control  Industrial Safety  Product Safety  Documentation  Logistics  Finance At Theme Exports, works and responsibilities related to the above functions are allocated to the following departments to manage process and sub-processes smoothly. 1. Showroom and Meeting Room Showroom, displaying the latest collection manufactured by the export house Source: Author

It is where all the meetings with the buyers and decisions on orders take place. The room is set up by the merchandisers and showcase the following:  Collection of the newly developed range for the current season, along with the details

 

Collection of past production successes in order to gain the trust of any new buyers Collection of fabric swatches, swatches with value addition and swatches with different washes, along with the required details.

The showroom must identify with the company’s essence and must be set up with the utmost care, since it’s the only contact point with the buyers or potential buyers. Hence, while setting up a showroom for business, products must be displayed according to the requirement of the buyer. Also, each and every detail must be discussed with the buyer, like the minimum required time etc. before processing any order. For the meetings with the buyers, all senior merchandisers are present along with the technical team (for any suggestions or explanations), the design team (for any changes) and merchandisers from the suppliers’ company. 2. Design Cell Design and innovation are the USP of Theme Exports, making the design studio an eminent part of the company. The export house has a team of expert designers, merchandisers and engineers across various divisions who ensure that it manufactures highly sophisticated, uniquely designed pieces for the customers. The large team of designers includes graphic designers who with the help of CAD (Computer Aided Design) focus on designing customized embroidery layouts and lace patterns which are developed in the in-house facilities. The division focuses on providing services such as market intelligence & trend forecasting both to A designer working on the fabrics & end line products. In addition, they also intricacies of a design work on creating mood boards as well as Source: www.themeexport.com developing products from direction provided by the customers. Along with getting the designs ready for the buyers, they also focus on information about the product lines so as to provide the buyers with the best possible presentation. 3. CAD Department Computer Aided Design system or CAD involves any kind of design activities which use of computer to develop, analyse or modify any engineering or garment design. It prepares the marker using the patterns prepared by the sampling department. A marker is a diagram of precise arrangement of pattern pieces for a specific style fabric and distribution sizes. It determines the most efficient layout of pattern pieces, hence avoiding wastage as much as possible.

4. Sampling Department Sampling is the making of a sample according to the buyer’s specification or the tech pack of the buyer just to check or analyze the style, look, fit etc. of the garment. Sampling is the basic step of any style before reaching the bulk production (Arora, S., 2012). Sampling Department is a restricted area used for making samples of collections and for fitting. The focus of this department is on product development. It is a beehive of continuous product development aimed at creating lines and collections as per “the look” of a specific customer of general collections following the international fashion trends. At Theme Exports, there were various operations under sampling like pattern making, sewing, embroidery, bucket dyeing, finishing etc. 5. In-house Testing Lab The fabric samples are sent to the laboratory for Fabric Package Test (FPT) with a list of tests that are to be carried out as per the buyers’ specification. Below are some of the tests conducted by the laboratory.

Different types of testing apparatus available at Theme Exports Pvt. Ltd. Source: Author

      

Tearing Strength Tester is used to determine the resistance of fabric against wearing and tearing. Tensile Strength Tester is used to give the resistance against normal loading. Crocking Fastness Test is used to find out the resistance of colour against rubbing. Digital Pilling Tester is used to predict the pilling behavior of the fabric or the garment after its use. Launderometer /Wash Meter is used to test the number of washings before the color fades from the fabric. PH Meter Hot Air Oven is used to check the fabric for flammability.

   

Light Box is used for the color assessment for textiles and clothing. It assesses any color changes and matches the swatches under different light sources such as sunlight, daylight, fluorescent, etc. An instrument is used to measure the weight of a fabric in GSM i.e. weight expressed in grams per square meter. Button Pull Test Perspiration Test

6. Merchandising Department A merchandiser is the interface between the buyer and the supplier who has to ensure the quality of production and timely delivery. A merchandiser directs and oversees the development of product line from start to finish.

Merchandising Department at Theme Exports Pvt. Ltd. Source: Author

The role of the merchandisers is to look for the appropriate market, to get the samples made according to buyers’ satisfaction, the estimate and quote the cost of the garment to

the buyer and negotiate with them, to get orders, to be in constant interaction with the buyer for the approval, to get the fabric and trims in-house for the bulk production and to coordinate with PPC and production. Also, a member of the merchandising department works closely with the workhouse/shipping and quality control department to ensure that all the garments meet the quality standards related to style, colour and size. Levels of merchandisers for a company depend on the volumes of business. More the number of product categories, wider is the merchandising unit. 7. Quality Assurance Department For Theme Exports, quality is of utmost importance. Here, attention to detail is the name of the game, from neatness to the fall of the fabric. People here are involved in the product development process, ensuring that product standards are defined and 18

achievable. In order to ensure high quality, the export house maintains some sort of quality assurance or quality control plan and procedure. Quality control is AQL (Acceptance Quality Level) based, which is a sample based product inspection system where minimum defective goods are acceptable in an order as per the guidelines provided by the buyer. The quality floor performs the following functions: 7.1 Inspection of Raw Material Checking of raw materials to ensure there is no defective or abnormal material. 7.2 Testing of Samples Theme Exports sends its sample to testing lab for testing physical and chemical test. Once the factory receives the test report, the quality control team gets assurance of whether to accept the raw material or not. 7.3 Inspection of Sample Visual inspection and measurement checking is done, prior to sending sample to respective buyers. 7.4 Cutting Room Inspection It inspects the work done by the cutting room like layering of fabrics on the cutting table, cut layer inspection, cut component inspection, bundle inspection etc. 7.5 Preparatory Work Inspection A lot of preparatory work is outsourced like printing, etc. Before feeding the outsourced goods, quality department checks and approves for further process (sewing process). 7.6 Sewing Process In sewing there are multiple checking processes that are practiced by the exporters like inline inspection, end of line inspection, stitching quality audit etc. 7.7 Finishing Process Finally quality personnel checks finished and packed goods and do auditing prior to handover shipment to external inspector. 7.8 Quality System Development Quality Control Department is responsible for setting quality system for the factory. 7.9 Quality Awareness Development They are also responsible to bring quality awareness among the workers and all employees.

8. Department for Research and Development (R&D) This department is responsible for the following:

  

Analysing products, whether they are production feasible or not, before sending final approval to the buyer. Risk analysis and viability of the orders the company receives Advice on ways to execute the order

9. Department for Production, Planning and Control (PPC) This department controls the planning and gives the guidelines from everything related to fabric to shipment. The main aim of PPC is to create deadlines for each process and to coordinate with various departments. The PPC department formulates the construction feasibility and cost analysis of the style of the garment based on the report from the department of R&D. They also prepare a monthly capacity budget for each production unit. The PPC department takes care of the following in the export house:

   

Optimum utilization of production capacity Production scheduling and allocation of orders Resource planning for man, machine and raw materials Ensuring quality.

10. Industrial Engineering (I.E.) Department The I.E. department of the export house is involved with different departments performing the following functions:  Designing of plants and their components

 Monitoring the performance of different departments through techniques such as time studies and suggesting methods of improvement in productivity and efficiency

    

Introducing and maintaining new mechanical and electrical systems Designing various production processes Planning of production and machinery to improve plant efficiency Monitoring the thread consumption Dealing with line balancing, i.e. setting up or rearranging a production line and deploying whatever machines and operators are available so as to achieve the optimum level of output.

11. Fabric Storage Unit When the fabric is sourced and brought to the export house, they are stored in the factory’s fabric storage area, under the responsibility of Fabrics Storage department. This department keeps records of the movement of fabrics into the export house and within the export house. The structure and size of the fabric storage unit is as per the size of the export of house. Fabrics used are procured from noted textile mills in the country & overseas. Before placing an order, the merchandisers analyze all the vendors and then select the most suitable one based on the quality and the lead time on procurement for the fabric. Or, they source fabric from the supplier nominated by the buyer.

Fabric Storage Area at Theme Exports Pvt. Ltd.; Source: www.themeexport.com

From here, the fabric is taken for inspection and then stored in specific locations from where it is issued for cutting. Every inch of the fabric is checked for uniformity in color, printing & finishing. There are various racks to stack fabric. At Theme Exports, rolls of fabric are kept together on the basis of a particular buyer. 12. Trims and Accessories Department It is a huge store house for all the accessories required by the export house both for sampling and for bulk production. It includes rivets, buttons, labels, wash care, fusing, zipper, threads (from Euro brand), Velcro, packing material, general stationary items, pattern paper rolls, cutting blades, trimmer, needles, beads, lace and many more items. The merchandisers as per buyerâ&#x20AC;&#x2122;s specifications order in all the accessories that are used in a particular style for that buyer. Once the accessories are received from the vendors, they are sent in for checking and testing for quality and colour. They are then issued to the sampling and production departments when the production starts. 13. Cutting Department

Patterns are sent to the cutting room for laying fabrics according to the patterns; Source: www.themeexport.com

Cutting is the very first process in garment manufacturing. It is done according to the master patterns with 100% accuracy.

Functions of the Cutting Department Spreading Layering Cutting Manual/Automatic

Ticketing Fusing Checking Bundling

Transfer to Production 13.1 Spreading and Layering It is a process of smooth layering of fabrics in superimposed layers of specified length. It can be done manually or through a spreading apparatus. 13.2 Cutting It is done to get the raw materials in required shape and quantity, accurately and economically and in sufficient value to keep the sewing room supplied with work. It can be done manually by skilful labour or automatically using instruments like powered scissors or round, straight or band knife. 13.3 Ticketing Here, cut components are grouped together as per their sizes and taken to the checking table for any errors. 13.4 Fusing The parts to be fused are separated from the bundle. The fusing material is cut according to the size of the components to be fused. Both the component and the cut fusing material are then passed through the fusing machine. 13.5 Checking The ticketed panels are sent to the checking area for inspection of every individual piece for any objectionable faults. Panels having faults like wrong grain line, inappropriate size, incorrect shape and any fabric defects like holes, cuts, shade variation, etc. that are not within the acceptable quality parameters are removed from the cut lay.

13.6 Bundling The checked components are arranged into bundles which contain pieces of same style and same size. The cutting department issues the amount required by the production department as and when asked for. 14. Sewing Department

A worker sewing on a garment of the latest trend; Source: www.themeexport.com

It is the most important department of any garment manufacturing unit which is responsible for the conversion of cut panels into actual garments. Brand labels and size labels are also attached in sewing. When a new style comes over, information like operation breakdown, sewing details, critical operations, etc. is put up on the display board. A sample of the garment is also put up in front of the sewing line for any type of reference. Theme Exports Pvt. Ltd. follows the Assemble Line Production System in which a garment is stitched by a number of workers. Therefore, one part is stitched by one worker and then passed on to the next worker. Hence, operations are assigned to the operators according to their skill set. Line-in-charge or the supervisor gives directions

One of the many production lines at Theme Exports Pvt. Ltd. following Assemble Line Production System; Source: www.themeexport.com

to the operators about their respective jobs and In-line checkers or QC’s ensure that the quality coming out of each operation is as per the quality specification. Modern machinery from recognized brands such as High Lead, Juki etc. is used to sew garments. A mix of simple lock stitching machine, over lock machine, flat bed machine, button attaching, button hole and snap button machine, machines for piping, shearing, cuffs and collar are present in the export house. 15. Embroidery Unit

Embroidery of intricate designs into the fabric by hand; Source: www.themeexport.com

Different export houses use different methods of embroidery for their garments, i.e. Hand or Machine or Computerised embroidery. This also depends on the requirement of the buyer. Theme Exports Pvt. Ltd. uses both hand and machine embroidery for their clients. A series of embroidery techniques are possible on machines. 16. Printing Unit Export houses are equipped with printing apparatus like printing machines and tables with the capacity of printing garments. A lot of times, printing is outsourced and if it’s in-house, they do a lot of panel printing on garments. 17. Washing Unit Garments pass through various handling processes, which may render them dirty and stained, thereby reducing their aesthetic appeal. To restore this aesthetic value, they are subjected to cleansing processes like washing and dry cleaning. Garments are sent for washing by the production department as per the buyer’s requirement. Washing is done for several reasons:  Control uneven shrinkage  Lighten colour shade  Even out colour shade variations  Remove printing smell  Execute a dyeing program

Theme Exports Pvt. Ltd. uses a Tumble Dryer for washing which evaporates out all of the left over water from the garments making them completely dry. The garments go through different types of washing like:  Normal wash  Garment wash  Enzyme wash  Stone wash  Softener  Bleach  Acid wash  Monkey wash  Emery balls wash  Silicon balls wash Tumble Dryer at Theme Exports Pvt. Ltd.  Sand wash Source: www.tradekorea.com 18. Dry Cleaning Unit

Left: Stain removal process; Right: Textile spot cleaning gun; Source: Author

This process makes use of a PERC machine. The solvent used in this machine for stain removal is Perchloroethane. Every garment is not subjected to this treatment. Only those garments which have stubborn impurities like oil and rust, under this process. Mostly light or white coloured garments that are more vulnerable to staining are dry-cleaned. This

PERC treatment gives whiteness as well as shiny appearance to the garment. A number of other chemicals like softener, optical brightening agent, hard stain (Zn) remover, anti-wrinkle agents, hard water stain remover, etc. are also added. 19. Finishing Department After assembly, the garments are sent for finishing - a key stage of garment manufacturing process. It is done to prepare the final garment according to the quality standards of the buyer before packing it for shipment. Stitched garments need to be finished and nicely folded and packed to display on retail shops. Various jobs are done in this department such as thread cutting, checking and spotting, alteration, re-ironing, final quality and measurement check, tagging, folding as per buyer’s specification, etc. Some of the instruments used for these functions are thread cutter, steam iron, flat bed, thread clipper, spotting guns, stickers, etc. Garments are checked again at this stage to dismiss errors like missing of labels, fabric flaw defect, holes, stains, poor construction, sizing problem, poorly trimmed garment threads, broken or skipped stitches, open seams, etc. 25

Finishing functions being done after production; Source: Author

20. Packing Department

Packing of merchandise into poly bags and then into cartons; Source: Author

Packing is the last stage where the final garments are primed, organized and geared up for the shipment to the buyer. The entire process from the way a garment will be folded to the final labelling of the cartons is dictated by the specifications provided by the buyer. Buyers demand this so as to achieve consistency in the packages and to also provide a visual value to the product at retail label within their vendor base. These instructions are standardized for a particular type of garment and sent to the merchandiser in the form of a packing manual. The merchandiser forwards it to the

packing in-charge along with a sample, i.e. packed with the packing dimensions approved by the buyer. This is kept as a visual reference for the packers. As the garments are received from the finishing department, they are first sent to the packing table for counting. This is done to maintain a record of how much goods have been received by the department and how much have been packed. Packing is done in two stages: 1. Poly bag packing, which involves tacking and folding. 2. Carton packing, where cartons come from a nominated source by the buyer. Also, stickers are stuck to the cartons which contain details like buyerâ&#x20AC;&#x2122;s logo, measurement of the carton, style number, colour code, country code, fabric description, size ratio chart, weight, etc. 21. Shipment Department The shipment department of the export house takes care of all the shipments. It looks after the following: 21.1 Delivery Schedules 26

The department holds the responsibility of handling all the delivery schedules as and when promised by the export house. 21.2 Dispatch The department looks after the in-coming and out-going of materials in the export house. The following details are recorded:  Dispatch receipt  Dispatch issue  Checklist  Finishing pending  Records 21.3 Pre-shipping The department prepares two invoices i.e. commercial invoice and custom invoice. The commercial invoice is prepared for the buyer and the custom invoice is prepared for the authorities of both the countries before the shipment of goods. 21.4 Post-Shipment After the shipment of the goods, the exporter sends all the documents to the buyer’s bank for the payment. As the buyer’s bank will receive the documents, it will confirm with the buyer for the release of payment. 22. Documentation Department The documentation department of Theme Exports is centralised for all the units. The entire data related to all the departments is stored with a backup in the computer system through an EDI system. The department holds the following documents:  Shipping Bill  Custom Clearance  Certificate of Origin of Goods  Duly-signed Invoice  Test Certificate of Goods  Purchase Order  Letter of Credit 23. HR and Administration Department This department is responsible for the human resource management, hiring employees, establishing HR policies as per Government rules and regulations and taking care of legal issues. The export houses have a formalized selection, evaluation, and payroll processes for its employees. The function of this department consists of tracking innumerable data points on each employee, from personal histories, data, skills, capabilities, experiences to making payroll records. They work in close coordination with documentation to ensure all documents are correct. They also keep the Government policies notification up to date. The HR department is divided into two sections for the better control of manpower, i.e. Corporate HR and Factory HR. There is an HR head leading a group of people. The hierarchy of HR is much more detailed for the factory because of large number of workers. 24. Accounts Department Like any other company, accounting department in the export house is responsible for preparing employees payroll, distribution of salary and wages, managing company 27

accounts, etc. They help in ensuring that all the payments are correct and on time for all the suppliers. This department also ensures that the company receives payments for sampling/sale sampling. They maintain the salary records with close co-ordination with the HR department. 25. Vendor Social Compliance As a corporate citizen and a business entity that is evolving through continual improvement in ethical business, employee welfare and adherence to local and international laws has been certified SA – 8000, by Bureau Veritas Quality International (BVQI). The certification is widely accepted in the Europe & the US as a sign of a corporate body that has definite ethical business practice. It not only ensures better work environment, equal pay, grievance handling mechanism, definite disciplinary procedure, mechanism to check and address sexual harassment and healthy employeemanagement relationship at the premise of manufacturing that is certified but also takes care of the supply chain, and ensure that starting from raw material supplier, accessory supplier to shipment of final product, ethical business is practiced. This is ensured in the form of Supplier Compliance. The following are the standards:  Child labour

       

Forced labour Health and safety Freedom of association Discrimination Disciplinary practices Working hours Remuneration Management system

26. Cafeteria Cafeteria in an export house is very similar to a lunchroom or dining hall where food is served from counters or dispensed from vending machines or where food brought from home may be eaten. It is a great place to promote social interaction among employees at a time when social interaction is appropriate. Through cafeteria, employees can be served with healthy food options which in turn can improve their productivity.

(7) Process of Garment Manufacturing at Theme Export Pvt. Ltd. At any given garment manufacturing unit, the process of manufacturing can be divided into three stages.

Process of Garment Manufacturing

Pre-production Process

Production Process

Post-production Process

For the styles for which we witnessed the manufacturing at Theme Exports, the preproduction and the post-production process remains the same. Hence, it is only the production stage of the styles that differ in process. Below is the pre-production process of all the styles combined, production process of individual styles and the post-production process of all the styles combined.

Pre-production Process at Theme Exports The pre-production process is followed prior to the bulk production of garments in an export house. The process starts with meetings with the buyers and ends at the production of a sample for the bulk production. It is a stage that determines what is to be manufactured, how it is to be manufactured and what guidelines are to be followed while manufacturing the style. It is as follows: 1. Meeting with the Buyers The first stage in the garment manufacturing process is meeting with the potential/existing buyers. The designers of the export house showcase their collection and designs to the buyers in the meeting/show room. The buyers then decide the designs according to their requirements. If the buyer already has a design then changes are made according to the fit, fabrics or trims. This is the stage at which all the inspiration that the designers have been working on over the past few months is put to use in terms of feasibility for the mass production. 2. Creation and Receipt of Tech Packs Based on the discussions held at the meeting with the buyers, the designs of the garments that are feasible to go into bulk production are worked upon by the design department of Theme Exports or of the buyer. If the design belongs to Theme 29

Exports, their design department creates a tech pack for that particular style and forwards it to the buyer for assessment. On the other hand, if the design belongs to the buyer, their design team sends the tech pack to Theme Exports to notify them about their requirements. Every tech pack goes through stages of improvements and changes until both parties are satisfied. The tech packs include  Design sheet, to depict the look of the style.  Specification sheet, to depict the seams, attachments to the garment or anything specific about the style.  Measurement sheet, which is helpful while making patterns.  Bill of Materials (BOM), to determine the quality of the raw materials that go into creating the garment and the source of procuring the raw materials. 3. Pattern Making Based on the tech pack of the style, the design department at Theme Exports work on the patterns required to manufacture the samples for that particular style. 4. Procurement and Inspection of Raw Materials The raw materials for the first sample are procured at this stage and are tested for its quality, as promised by the vendor. The tests are either done in the in-house testing labs or are outsourced. The physical and chemical properties of the fabric and trims are checked. 5. Development of Proto Sample This is the first milestone in the process of garment manufacturing. Proto sample is the proto type of a new design created by the designers. This is made to communicate the design of a style or a line or to present garment structure. In proto samples, fit is not considered. It is made using the raw materials ordered by the export house to create the best possible version of the design. 6. Approval of Proto Sample by the Buyer After sending the proto sample to the buyer for assessment, the merchandising team at the buyer’s end comment upon the sample and suggest simple yet required changes, if any. If the sample is not approved, Theme Exports re-create the sample with suggested changes and re-send it to the buyer. If the sample gets approved, Theme Exports move on to the next stage in pre-production process. When the proto sample gets approved, three major decisions are handled at this stage:  Cost negotiation and closure (cost sheets are created with overheads and manufacturing costs added to it)  Delivery closure  Building up the Time & Action calendar according to the ex-factory date defined by the buyer Also, the tech packs are sent to the Industrial Engineering (IE) department to calculate the Standard Allotted Minutes (SAM) & Standard Minute Value (SMV) for the 30

style and also to the planning department to plan the production according to availability, efficiency and capacity of the workforce and the factory.

7. Creation of Purchase Order After the design has been approved by the buyer, costs have been negotiated; delivery dates have been confirmed; shipping terms, payment terms and mode of payment has been settled and quantity of the style has been finalized, a Purchase Order is issued by the buyer to Theme Exports as the first official document indicating the order confirmation. 8. Development of Fit Sample Fit sample is made with actual measurements of the basic size provided by the buyer. Modifications on the pattern are done to get the desired fit of the garment. It is tested either on a live model or standard-sized mannequin to verify garment fit and fall. For the fit sample, the only requirement is the correct quality of the fabric, since different fabrics have different falls. This sample goes to the technician of the buyer’s end. Also, at this stage, the merchandising department at Theme Exports books around 60% – 80% of the greige fabric required for the style. 9. Approval of Fit Sample by the Buyer The fit sample can get approved at the 1st stage or can go up to 3rd stage, until the buyer approves of the fit of the style. Also, at this stage, the quality of the raw materials is approved by the buyer. For this, Theme Exports sends Lab Dips (for solid fabrics), Bit Looms (for yarn-dyed fabrics), Strike –offs (for printed fabrics) and Knit Downs (for knitted fabrics). Later on, the rest of the fabric is booked by the export house. 10. Development of Size Set Sample The main purpose of the size set sample is to check the factory's capability to make the sample in all sizes. It also depicts the placement of embroidery or prints whose dimensions change with the changing size. 1-2 samples (or quantity specified by buyer) of each size are sent to the buyer for assessment. 11. Approval of Size Set Sample The buyer sends in comments about the size set sample sent by Theme Exports. Once approved, the factory moves ahead with the next process. 12. Fabric Package Testing (FPT) At the fabric stage, the fabric procured from the vendors is tested for its approval for mass production. It is a mandatory test and the lab can be nominated by the buyer. Some of the basic tests that are conducted on each and every fabric are as follows:  Yarn Count  Construction 31

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Grams per Square Meter (GSM) Fibre Composition Tensile Strength Tear Strength Colourfastness to washing (at 40 degrees) Colourfastness to rubbing Colourfastness to perspiration. Colourfastness to water Shrinkage

A buyer can ask for additional tests as per their requirement. If all requested test results don’t meet or exceed buyer specified requirement, then the fabric is not approved for further processes. In this case, the fabric is sent for re-processing. 13. Development of Pre Production Sample PP sample is considered to be a contract between the buyer and the factory. It has to be made in original fabric and trims with washing, embroidery and printing matching to the actual standards. It is the first sample to be made in actual production line by the sewing line tailors, so that the operators know what they are going to make. PP Sample is the standard for production and bulk production garments should be identical to PP sample. The factory can start the production of bulk garment only after the approval of pre-production sample. 14. Approval of Pre Production Sample The buyer’s team follow up the receiving of pre-production sample with comments and any last suggestive changes. Once the sample is approved, the order file is transferred to the production department who then follow up with the order and provide with a Planned Cut Date (PCD).

Style 1

Buyer

Harvey Skirt Wallflower Clip Voile

J. Crew

Production Process at Theme Exports 1. Creation of CAD Marker A Computer Aided Design Marker is a thin paper/digital sheet which contains all the components for different sizes for a particular style of garments. Patterns are made according to the measurement specifications given by the product development team of Theme Exports and grading is done for all the sizes. The purpose of marker planning is to determine the most efficient combination of sizes and shades for each order and to produce the best fabric yield and equipment utilization. One cutting order may require several markers to achieve optimum efficiency (Textile Learner). At Theme Exports, it is made through Opitex software before cutting the fabric. 2. Fabric Spreading Once the fabric is approved after the inspection, it is spread down as a preparation for cutting. A pile of fabric is laid on a table in a predetermined direction and relationship between the right and wrong side of the fabric. (Kiron, M.I., 2013). Theme Exports follows the method of manual spreading in which the operators work back from the end, aligning the edges and ensuring that there is no tension and that there are no wrinkles while spreading the fabric. 3. Fabric Cutting Once the fabric is laid down, it is cut according to the marker made on CAD. Cutting can be done manually or through machines. Theme Exports follows the method of manual cutting through scissors and use machines such as straight knife for automated cutting. 4. Ticketing/Bundling After cutting the fabric, all the components cut are labelled and then combined in bundles according to the parts and sizes which they are cut for. Tickets carry details such as style number, size, ply number, bundle number and issued date. Bundle ticket consists of order number, bundle number, quantity, style number, size and section. 5. Quality Check The quality check department checks whether all the cut components are available and qualify according to the standards set by the buyer, before stitching starts. 6. Sewing/Assembling of Components The most important step of the process is the assembly of all the parts and components of the garment. All the components are sewn together in an assembly line 33

wherein each tailor is allotted different operations depending upon the number of operations involved in the making of the garment. A tailor completes his operation and passes on the stitched part to the next tailor for the next operation. This makes the working efficient and thus, lesser time is needed to make one garment. Hence, this is the stage where the bulk production starts for an individual style. 7. In-line Inspection The quality assurance department checks the ongoing production of a garment in between the line to assure that the ongoing processes are at par with the required standards. 8. End-line Inspection The inspectors check the garment once it has passed through the assembly line and has been sewn into the required garment. 9. Top of Production Sample The top of production sample is sent to the buyer as soon initial pieces are come out of the sewing line. In TOP sample, the buyer tries to evaluate the actual manufacturing of the style. Their purpose is to cross-check whether factory is following PP sampleâ&#x20AC;&#x2122;s specification or not. 10. Finishing After the garment is stitched, a department looks after the finishing of the garment which trims all the unwanted threads from the garments to make it look good. 11. Ironing The garment is ironed once it is finished to make it look better and presentable. 12. Quality Check The final garments are checked before shipping it to the buyer.

Style 2

Buyer

Melia Dress

J. Crew

Style 3

Buyer

Addison Skirt Wallflower Clip Voile

J. Crew

Style 4

Buyer

Miranda Geo Eyelet

J. Crew

Post-production Process at Theme Exports 1. Packing After finishing, all the necessary tags are attached to the garments which are then packed in poly bags (if asked by the buyer) or cartons as per the requirements of the buyer. Depending on the requirement of the buyers, the garment can be: ď&#x201A;ˇ Flat Flat Packed (FFT), in which the garment is flat-ironed and then put in the carton in the side way. ď&#x201A;ˇ Flat Hanger Packed (FHT), in which the garment is put on hanger and then put in flatly inside the carton. ď&#x201A;ˇ Garment on Hanger (GOH), in which the garment is put on a hanger and is shipped hung inside a container. 2. Shipment Sample When style is being finished and packed for shipment, 2-3 finished and packed pieces with all packing details are kept for future reference. Shipment sample is kept by factory merchants and buyer's merchant. The main purpose of this sample is to assure buyer about the actual shipment dispatch.

3. Shipment

The banks notify both the parties Factory receives shipping details and instructions from the buyer

Buyerâ&#x20AC;&#x2122;s bank issues Letter of Credit to Exporterâ&#x20AC;&#x2122;s bank

The pick-up cargo collects the goods from the factory

The goods are loaded on the vessels

The warehouse requests for a duty tax declaration from the Custom Duty office and further receives the permission

The goods are sent to the port through cargos

The goods are sent to the warehouse for storing

Shipping process followed by Theme Export; Source: Author

4. Payment Method The payment term used by Theme Export is Letter of Credit. Working of Letter of Credit – The exporter ships goods to the importer/buyer according to the contract and further deposits the documents including the draft and transport documents to the bank (exporter’s bank). The bank then forwards all the documents to the buyer’s bank. The buyer’s bank forwards the documents to the buyer in order to confirm the payment. The buyer makes the payment as soon as possible and obtains all the documents from the bank. The bank sends the payment to the exporter’s bank which deposits the payment in the exporter’s account.

(8) References 

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ASSIGNMENTPOINT. Fabric Spreading and Cutting of Garments Industry. [Online} Available from: http://www.assignmentpoint.com/science/textile/fabric-spreading-and-cuttingsection-of-garments-industry.html [Accessed on: 26th April 2016]. EXPORT.GOV Methods of Payment in International Trade [Online]. Available from: HOWTOEXPORTIMPORT (2016). Terms of Payment in Export and Import [Online] Available from: http://howtoexportimport.com/Terms-of-Payment-in-Export-and-Import32.aspx [Accessed: 21st April, 2016]. http://www.export.gov/tradefinanceguide/eg_main_043221.asp [Accessed: 21st April, 2016]. INVESTOPEDIA. Trading House [Online]. Available from: http://www.investopedia.com/terms/t/trading-house.asp[Accessed: 21st April, 2016]. ONE-ILL. Incoterms 2015. [Online] Available from: http://www.oneill.com/downloads/incoterms%202015.pdf[Accessed: 20th April, 2016]. SARKAR P. Pre-production Process in Garment Industry. [Online] Available from: http://www.onlineclothingstudy.com/2011/06/pre-production-processes-ingarment.html[Accessed on: 26th April 2016]. TEXTILELEARNER. Process Flow Chart of Garments Manufacturing | Sequence of Garments Production Process. [Online] Available from: http://textilelearner.blogspot.in/2012/02/process-flow-chart-of-garments.html. [Accessed: 20th April, 2016]. THEMEEXPORTS. Theme Exports. [Online]. Available from: http://www.themeexport.com/ [Accessed: 20th April, 2016].