2nd Draft Report

Chapter 1

INTRODUCTION

1.1 INTRODUCTION TO STUDY

The project work entitled “Organization Study at Sree Chendur Murugan (SCM)

Garments Pvt. Limited” provides an insight in the practical field of management. This

project intended to work with the regular pattern of an organization and acquire knowledge

for the implementation in the current management scenario. This study can fulfill the

purpose through the support from the organization.

Organization

According to Chester Barnard, the Management Consultant “An Organization is a

system of consciously coordinated activities or efforts of two or more persons”. For example

hospital, college, factories etc. An organization social arrangement which pursues collective

goals, controls its own performance, and has a boundary separating it from its environment.

Organizational structure is the way in which the different groups of people, working in the

organization, are constructed the objective of creating these groups are created to ensure

proper coordination, less wastage of resources and quick achievement of objectives.

Organization structure

An organization structure shows the authority and responsibility relationship

between the various positions in the organization by showing who reports to whom.

Salaman & Storey describe the structure of an organization as the pattern of relationships

between roles in an organization and its different parts. According to them the purpose of

this structure as serving to allocate work and responsibilities in order to direct activities and

achieve the organization’s goals. This is a formal structure and it will set out in a paper in

the form of organizational chart. However, in the course of time an informal structure

develops in most organizations which are based on the reality of day-to-day interactions

between the members of the organization.

1 Organizational Study at SCM Garments Pvt. Ltd.

1.2 OBJECTIVES OF THE STUDY

Identify the working situation of an organization.

Find out the link between theoretical knowledge and practical experiences.

Study the vision of the company and how they achieve the vision through their

activities.

Study the process of planning, organizing, staffing, controlling etc in an

organization.

The relevance of team work for the success of an organization.

Acquire the talent of fast data collection and come to conclusions based on the study.

Understand the working of a company in a part of the country other than the native

place.

Research methodology

The data collected are important in a project like “Organization Study”. So for

ensuring the reliability of data I use the correct source for data collection. In this project I

collected both primary and secondary data.

Primary data is collected through direct interview method. For this I met with HR

head, Merchandising team head and production department head. They can provide the

exact data required for the study.

The secondary data collection is with the help of websites and brochures of the

company.


Chapter 2

INDUSTRY AND COMPANY PROFILE

2.1 INDUSTRY PROFILE – Textile Industry

India Textile Industry is one of the leading textile industries in the world. Though it

was predominantly unorganized industry even a few years back, but the scenario started

changing after the economic liberalization of Indian economy in 1991. The journey of cotton

industry starts in India during the year of 1854. The opening up of economy gave the much-

needed thrust to the Indian textile industry, which has now successfully become one of the

largest in the world.

Global Scenario

The history of development in World Textile industry was started in Britain as the

spinning and weaving machines were invented in that country. With the launch of textile

industry in the UK, the textile production was passed over to Europe and North

America, in the 19th century, after mechanization was also introduced in these areas. In

time, other countries especially in Asia have started to invest more in industrializing their

economies and the textile sector gained more ground. Thus, Japan, India, Hong Kong and

China were eventually leading producers, since due labor force was cheap. The

World Trade Organization (WTO) has taken so many steps for uplifting this sector. In the

year 1995, WTO had renewed its MFA and adopted Agreement on Textiles and Clothing

(ATC), which states that all quotas on textile and clothing will be removed among WTO

member countries.

There is tough competition between India and China to grasp the latest trends in the

global fashion industry and translate them into best quality products i.e. apparel.

Reputed foreign traders like J.C. Penney, Wal-Mart, Gap, Marks & Spencer and others

source apparel from India. No other country except for China can quite match the Indian

textile industry.



The following is a report published by ministry of textiles which shows the market

share of textile export of various countries during the time 2007-2008 and 2008-2009.

USA

UK

U Arab Em

irates

German

y

France Ita

lySp

ain

Netherl

and

Bangla

deshChina

India

Others0

5

10

15

20

25

30

35

40

2007-20082008-2009

Indian Scenario

India textile industry largely depends upon the textile manufacturing and export. It

also plays a major role in the economy of the country. Indian textile industry contributes

about 14 percent to industrial production, 4 percent to the country's gross domestic product

(GDP) and 16.63 percent to export earnings. Exports are over 40 per cent of the country’s

total production of the textiles sector. The sector targets US$ 6 billion foreign direct

investment (FDI) by 2015 to be invested in green field units in textiles machinery, fabric and

garment manufacturing, as well as technical textiles.

The textile industry plays a significant role. It provides direct employment to

approximately 35 million people. It is the biggest employment generator after agriculture

sector and is expected to generate 12 million new jobs by 2010 In Indian economy. The

textile industry in India is gifted with sufficient raw materials. There exists a low cost skilled

labour; growing domestic market and presence of India across the value chain are the key


Fig. 2.1 Export Market share of various countries

strengths of this industry. India can contribute around 21% of the world needed natural

fiber. This shows the availability of raw materials. The hourly wage of Indian labour is less

than other textile manufacturing countries like Japan, Germany, Italy, US etc.

The leading states of Indian Textile Industry are Maharashtra, Tamilnadu and

Gujarat. The major competitors of textile export industry are China, Bangladesh and

Pakistan. The Textile Industry of Tamil Nadu has a significant presence in the National and

State economy. It is the forerunner in Industrial development and in providing massive

employment in the State. Handloom, Power loom, Spinning, Processing, Garment and

Hosiery are the various sectors of the Textile Industry in Tamil Nadu. It is the largest

economic activity next only to Agriculture in providing direct and indirect employment.

The Garment sector is one of the fast growing segments of the Textile Industry in

Tamil Nadu. There are about 400 garment units in the State providing employment to about

2 lakh persons contributing Rs.2500 crore in foreign exchange. In Hosiery sector in the

State, most of the units are located in Coimbatore District. There are about 8000 hosiery

units in India, of which 4000 units are located in Tamil Nadu. The hosiery sector in Tamil

Nadu is providing large scale employment to around 3 lakh persons and contributes 44% of

Country's export. It contributes about Rs.8000 crore in foreign exchange.

The supports from the government add values to this industry. The introduction of

Technology Upgradation Fund Scheme (TUFS) for Textile and Jute industries during April

1999 becomes a new feature for Indian Textile unit. The 2009- 2010 union budget allotted

Rs. 3140 crore for the above purpose. Existing unit with or without expansion and new units

of this industry are eligible under TUFS. The Scheme for Integrated Textile Park (SITP)

makes new infrastructure for the development of textile industry. This will ensure

employment, additional investment and increase in textile production. For this purpose

government allotted Rs. 397 crore.

Advantage of Indian Textile Industry: India offers cheaper production and marketing costs

and enormous opportunities that have tempted Taiwanese companies to work on joint

ventures with Indian companies, especially for the manufacture of manmade fabrics. Several

European textile and textile machinery manufacturing companies have shown interest in


sourcing garments from India. Textile companies were keen to set up base in India due to

the cheap labour available here. India offers various incentives like low-cost labour and

intellectual right protection to foreign investors. The country allows 100 per cent FDI in the

textiles sector.

SCM Garments Pvt. Ltd.

The SCM Garments Pvt. Ltd, Tirupur has a strong support from the textile situation

of Tamil Nadu. It is a 100% exporting based company and the major buyers located at USA,

Australia, France, Europe, Canada etc. It is among the best five exporting companies in the

Tirupur area.

SCM Garments Pvt. Ltd. is one of the famous exporting units in the textile map of India,

located at Tirupur near Coimbatore. The company has an experience in this field over a

period of two decades. The gradual growth of the company indicates the proper planning of

management in the area with uncompromised hard work and team spirit.


2.2 COMPANY PROFILE

SCM Garments Pvt. Limited

57- B, V O C Nagar

Valayankadu

Tirupur

Tamil Nadu – 641 603

Website: www.scmgroups.com

Sree Chendur Murugan (SCM) Garments Pvt. Limited is one of the leading

manufacturing units in the textile map of Tamil Nadu. It is a government certified export

house in manufacturing and exporters of knitted garments. By rigorous planning and

working the company can become one of the best exporting units in Tirupur.

SCM group

The journey of SCM group starts from 1962 with retailing. Now SCM group

comprises a set of companies they make the leading portion in the industry of Tamil Nadu.

The group is now in a position which is not easily achievable by its competitors. The major

endeavours of the group are in Textile retailing, Jewellery- manufacture and retailing,

Garment export, spinning, fabric processing and energy. For this type of development the

research wing, innovative design, product development, manufacturing and marketing

helped a lot. The present aim of the company is to achieve more in the established sectors

for getting more market share.

Group Companies

The Chennai Silks

Largest textile kingdom in Tamilnadu

Sree Kumaran Thangamaligai & The Chennai Silks Jewellery Mahal

A series of outlets housing exquisite and exclusive jewellery

SCM Garments Pvt. Ltd.

Manufactures and Exporters of Woven and Knitted Garments

Athava Garments India Pvt. Ltd.


Manufactures and Exporters of Woven and Knitted Garments

SCM Textile Processing Mills.

For dyeing and printing

SCM Energy Pvt. Ltd.

Harnessing green power

The KTM Jewellery Pvt. Ltd.

Manufactures of exquisite Jewellery

The SCM Garments Pvt. Ltd

The SCM Garments Pvt. Ltd. started in the year 1989 at Tirupur. Tirupur is the

textile palace of India from where the major textile exporting happens. The company is one

among the leading exporter of textile in Tirupur. Initially the company concentrates on the

exporting of textile only. Now it has a vibrant position in the Indian textile market.

The SCM Garments has twelve different production units for the manufacturing of

knitwear’s. In this the Thekkalur unit is the mega production unit. The Tirupur unit situated

at Kumar Nagar and which is around 60km from Coimbatore. It is the head office of the

SCM Garments Pvt. Ltd. The organized and efficient working of the company gives the

position of one among the top five players in the textile exporting industry of Tirupur.

The implementation of most modern technology available in the textile production

ensures the timely delivery of the orders. ‘Quality’ is the key word of this industry. The

buyers are always looking for best quality in reasonable price. Ensuring this is a tedious job.

The presence of competitors is another barrier for development. The SCM can gradually

overcome all these through planned processing of orders. The strong QAD department with

the coordinated working of all other departments becomes the backbone of SCM’s

development.

Location - Tirupur

Tirupur, situated near Coimbatore is “The Manchester of South India”. It is an

important trade center of India. Tirupur has gained universal recognition as the leading

source of Hosiery, Knitted Garments, Casual wear and Sportswear. It is known by various


names such as “Dollar City”, “Knit City”, “Cotton City” etc. Tirupur is the Knitwear capital

of India.

Tirupur contribute a huge amount of foreign exchange in India. It has spurred up the

textile industry in India for the past three decades. Its economic boom boosts the morale of

Indian industrialists. It is an ever growing economy in India. The export worth of Tirupur is

more than 1.2 lakh crores during the period of 2008. The Tirupur textile industry is the

largest employment provider of Tamilnadu after the agriculture sector.

Now Tirupur got the position as a District in the map of Tamilnadu. This is because

Tirupur is the centre of Tamilnadu’s cotton Knitwear industry and successfully markets its

products in India and overseas. It is one of the fastest growing cities in terms of Industry. It

caters to famous brands and retailers from all over the world. Nearly every international

knitwear brand in the world has a strong production share from Tirupur.

Vision

“To deliver innovation and quality to our customers by following a progressive and

on time approach and further the cause of a sustainable future by promoting an eco friendly

approach in all our operations”

History

The starting of SCM Garments was with a single production unit at Tirupur during

the year 1989. Now this unit is the head office of the twelve sub production units of the

enterprise. The mega unit of SCM garments is situated at Thekkalur, Coimbatore. It contains

a fully functional unit including the yarn production and garment manufacturing. This mega

unit started during the year 2006. Another mega unit at Gopi near Coimbatore started during

2009. All these big units add quality features to the wings of SCM Garments.

Founder and Management

Founder - Shri. A. Kulandaivel Mudaliar

Managing Director – Shri. P Paramasivam


Quality Policy

The quality policy of the production department is

“Stipulated Quality with

Continuous Improvement to

Maximize the productivity and

Galvanizing for Customer Satisfaction”.

Products

The SCM Garments Pvt. Ltd. has a large range of knitwear products. This includes

T-shirts, Sweat Shirts, Polos, Boxer Shirts, Cardigans, Tank Top, Sportswear, Pyjama Set,

Skirts, and Body Suits etc.

In the woven garments range the SCM can develop their own brand names in the

domestic market like Vitomine, Ronal, Woods valley, Campsvink, LUV, and Orions.

Monthly Production Capacity

Basic Style -- 1,22,200 pcs

Medium Style -- 93,600 pcs

Tough Style -- 46,300 pcs

Major Clients

The major clients of SCM garments are from Europe, USA, Canada, France etc.

The main brands who use SCM garments are Decathlon, Columbia, Marks & Spenur’s,

Lindex, C&A, Tesco, Kaibi, Aldi Stores, Dunnes Stores, Guess Jeans, Wal- Mart and

ASDA.


Major Competitors

Eastman Exports (A Division of Eastman Exports Global Clothing (P) Ltd.,)

KPR Mill Ltd.

Best Corporation Limited

S P Apparels Limited

Labour and Welfare Practices

The SCM Garments practices appreciable labour welfare activities for getting

maximum benefit for their staffs. The great believe of “Labour as the key strength”, SCM is

very conscious about their well being. Here exists a Comprehensive healthcare apartment for

the staffs. Provide good transportation facility for workers and value added courses like

yoga and meditation practices. No child labour policy is a great decision by the

management.

Corporate Social Responsibility

The social activities of company includes blood donation camp, eye camp, support

for mentally challenged people and agro field (without any chemicals) etc. Operations at

SCM are driven by a strong sense of commitment to the society and environment. The

company is one of the first factories down South to be certified for organic cotton

production by GOTS, covering all processes. We adhere to an eco-care programme that

includes eco friendly dyes, ETP with Reverse Osmosis, industrial procedures for reduced

carbon emission and an agro field that does not use any chemical fertilizers. All this

activities reduces the atmospheric pollution due to chemical usage.


Major Achievements

The certifications recognize our endeavours as well as drive company to excel in

their efforts. A government recognized star export house, the company is certified for ISO

9001:2000.

1. Oeko TEX Class 1 & 2 – It is an international testing and certification system for textiles, limiting the use of certain chemicals. The class 1&2 includes

I = baby products (up to age two)

II = products having skin contact (blouses, shirts, underwear)

2. GOTS Certification for Organic Cotton

3. WRAP accreditation – WRAP is a not-for-profit organization dedicated to

promoting ethical, humane, and lawful conditions and practices in manufacturing

facilities all around the world.

4. SA 8000. They remind the organization to continue being responsible in all the

initiatives, be it quality, environment or society.


2.3 PRODUCT PROFILE

SCM Garments Pvt. Ltd. is a company which produces knitted garments for

exporting purposes. Company offers a complete range of products for men, women and

children. Now the group companies have a perfect grip in the domestic market with branded

woven clothes. The main types of knitted garments are in the following patterns.

Knitted Products

T- Shirts

Sweat Shirts

Polos

Boxes Shirts

Cardigans

Tank Top

Sports Wear

Pyjama Set

Skirts

Rompers

Body Suit

Woven Product Brands

Vitomine

Ronal

Woods Valley

Campsvink

LUV

Orions



Chapter 3

ORGANIZATION STRUCTURE AND CHART

3.1 PLANNING IN THE COMPANY

A proper planning is the back born of success in SCM Garments Pvt. Ltd. The

process ensures the quality, time keeping and customer satisfaction. Company is working

with the key strength of quality assurance and recognition, both of these derived from the

implementation of the long term vision of the company. From the vision it is clear that the

company is working to meet the quality of product for customers through on time approach

and innovative production methods.

Enquiry

SCM Garments Pvt. Ltd. is properly established in the industry and the buyers

approach the company with their needs. The new project may come through online method

or direct approach through some dealers of the buyer within the country. Both are acceptable

for the company. Marketing team of the company is very conscious about the buyer, for this

they keep a follow up process about the leading buyers in the market. If the buyer is

acceptable then company will move to price negotiation and garment costing.

Garment Costing

The garment costing identifies the cost of a single product after including all the

specification of the buyer like printing, embroidery, label and other required accessories.

Then this price is shown to the buyer for approval. If the price is approved by the buyer then

the order will process otherwise there will be some price negotiation with the buyer and the

company will quote a final value. Then either the buyer agrees and continues with the

contract process or disagrees and stops the contract process.


Then acceptance of sample proceeds to sending of order information to the company

in detail. The order details from buyer will include the pattern of the garment,

measurements, quantity, colour, fabric quality and GSM, stitching and labeling pattern,

delivery time etc. It will include each and every minute point about the order. Then company

checks for the production capacity available in the units or hire it from others. By these

processes the company accepts the order and seeks for purchase order.

The purchase order contains the bank details of the buyer, agent of the buyer in the

domestic market if any, the letter of credit number and letter of credit date etc. If all these

legal documents are correct then sample production will start. The documents will contain

the details regarding penalties due to delayed delivery, payment etc.

Sample production

After all the above steps the order comes in the hand of company as whole. Then

company starts planning of production for ensuring the time delivery and quality assurance.

Next is the development of fix sample. This is a sample which has the measurements. If all

measurements are correct then samples with required printing, embroidery or label. All these

steps need approval from the buyer. So the time is divided into these processes accordingly.

Within a specific period the fix sample approval and sample approval will obtained from the

buyer. For this a coordinated working of marketing, merchandising, fabric, yarn, store, QAD

and sample department is necessary.

Production of garment in bulk is the upcoming process in the company. The sample

garment produced is utilized for production process. Before bulk production a pre

production sample stitched. This samples will approved by the merchandising team assigned

for the specific buyer. If that is perfect then the bulk will produced.

All the pre production sample and bulk production is based on the time statistics

obtained to the production manager. A planned status sheet will circulate among the

department heads of production, fabric, store, yarn and QAD. The planning sheet will speaks

the dead line allotted for them. It is prepared by the allotted merchandising team. The

departments will do their duties within the time allotted and report daily to the


merchandising team. The production unit will show the daily production status and the

department is having their own planning to finish the task before the stipulated time.

The packed product is the output from the production department. The shipping of

the product is through the port of Sri Lanka and till there the Thoothukkudi port of Tamil

Nadu carries the cargo. The planning is needed in this step also, because there are weekly

ones shipping from Thoothukkudi to Sri Lanka. So the production and packing should finish

before that deadline. So initially this date will take into consideration by the merchandising

team for set the time for departments.

All the above process of planning ensures the time specified by the buyer. The

quality ensured by quality controllers of each department and the QAD’s. The coordinated

working of each department is the success of the SCM Garments.


3.2 ORGANIZATIONAL STRUCTURE WITH ORGANIZATIONAL CHART


CEO

Adm

inis

trat

ion

HR

D

epar

tmen

t

Mar

keti

ng

Mer

chan

disi

ng

Sam

plin

g

Pur

chas

e &

S

tore

Fab

ric

Fin

ance

QA

D

Log

isti

cs

Pro

duct

ion&

P

lann

ing

MD

Yarn Purchase

Reception

Transportation

Securities

EDP

Canteen/Code of Conduct

House Keeping

Fig. 3.1 Organizational Chart

3.3 FUNCTIONAL AREA ANALYSIS

Functional area of an organization is the departments existing there. A department

is a working group combined together for performing certain functions of similar nature.

The process of division of enterprise into different parts is broadly called departmentation.

The objectives of departmentation are to i) specialize activities ii) simplify managerial skills

iii) maintain control groups with-in well defined areas.

The SCM is working with eleven specific departments. Their independent and

interdependent working makes the company to achieve its vision. The departments are

Administration, Human Resource, Marketing, Merchandising, Sampling, Purchase & Store,

Fabric, Finance & accounts, Quality Assurance, Production and Planning and Logistics.

The method of departmentation in SCM Garments is ‘departmentation by

function’. Under this method, the departments are created on the basis of specified functions

to be performed. Activities related to a function are grouped in a single unit with a view to

give a well defined direction to the whole group. Functional departmentation is the most

widely employed basis for organizing activities and is present in almost every enterprise at

some level in the organization structure as it lead to improve planning and control of the key

functions on which the survival and growth of the enterprise depends.


Administration

This is the basic department which is working for the overall functioning of the

organization.

Functions

Reception

The basic enquiry about the company is fulfilled through the reception department.

Transportation

The company provides transportation facility to the workers who are in need of this.

The timing of the transportation is available in each unit and the employee can use the

facility.

Securities

EDP

The Electronic Data Processing unit is working for rectifying the errors of electronic

equipments of the company. In the production unit all the machines are electronic and errors

on any of them cause loss for the company. Daily checking of all these machines are ensured

by this department. The necessary correction is doing for the perfect working of all the

systems. All departments are working with the help of autonomous computer system. The

perfect workings of these are also important. This is also ensured by the EDP team.

House Keeping

Canteen, Hostel and Code of Conduct

The canteen facility is available for all staffs and workers of the company. Ladies

and gents hostel are available with all necessary requirements for the employee well being.

There exists a specific code of conduct for the employees. This is also maintained by the

administration department working in the company. The exact following of this helps to

ensure the proper working.


Yarn Purchase

Yarn purchase for production is maintained by the administration wing. The quantity

yarn required for production informed by the production department head and the same

quantity will be purchased by the yarn department. The yarn department has also contact

with the merchandising team for the process planning. The purchase of yarn is the first step

of production. So it is a must to ensure that the yarn department fulfills the activity assigned

at the right.


H R Manager

H R in Charge

H R Assistant

Staff Department staffs

Human Resources Department

In SCM Garments Pvt. Ltd. HR department is the one which deals with

recruitment, selection, Training, performance appraisal, grievance handling, Counseling etc.

The recruitment of office staffs are through personal interview method and campus

recruitment. Whenever a vacancy in any department reported to the HR department then a

mail will circulate among the staffs mentioned about this and the HR accepts staff

references. The staff reference is a major resource for finding best staff for the company. If

it is not possible then news paper advertisement will use for recruitment process. The

campus recruitment among the textile courses provides technically equipped students they

required less training to cop up with the standard.

There is no recruitment for the top level of administration. No direct entry to the

managerial level post. The company will recruit manager trainees and subsequently they

become the manager of a department. All such recruitment is done by the HR department.

During the training period there a performance checking session at the end of each

month. At this time the ability of trainee to adapt the situation will be clear to the HR officer

and provides adequate instructions to improve the ability.


Fig. 3.2 H R Department Structure

Yearly a performance appraisal program conducted by the HR department and In

this all staffs will rate by the senior staffs, junior staffs and colleagues. This rating is based

on their one year performance. For this a one to one discussion with all staffs and a

performance appraisal form will circulate among the staffs for rating. There is increment in

salary and the best rated staff will get reward for their performance. This ensures a whole

hearted working towards the job allotted for each person. This will be during the period of

December- January of every year.

The handling of attendance is another duty of the HR department. The company

implements biometric attendance reader and this reads the thumb impression of each staff

for recording attendance. There is another attendance system in each department and for

which the HR department employs one staff in that particular department. The attendance

recorded by them passes to HR department. Finally the HR department passes this

attendance report to the finance and accounting department for calculation of payroll.

The key role of the HR department is employee retention. Now SCM Garments is

running with employee retention of more than 95%. This shows the efficient working of HR

department in handling the employee related activities.

Objectives

Recruit and select specific employees for fulfilling the organizational needs.

Provide adequate training for the employees for attaining the target assigned to them

Facilitate employee retention and improvement through performance appraisal

programs.

Handling of grievance of employee and make necessary actions to resolve that. This

ensures the employee satisfaction and faith towards the management.

Provide counseling for employees who are in need of that. For this check with the

performance of the employee and collect feedback from the head of the department.

This improves the confidence of the employee


To create and utilize able and motivated workforce to accomplish the basic

organizational goal.

To establish and maintain sound organizational structure and desirable working

relationship among all the members of the organization.

To secure the integration of individual or group within the organization by

coordination of the individual and group goals with those of the organization

To create facilitates and opportunities for individuals or group development so as to

match it with the growth of the organization.

To attain effective utilization of human resources in the achievement of

organizational goals.

To identify and satisfy individual and group needs by providing adequate and

equitable wages, incentives, employee benefit and social security and measures for

challenging work, prestige, recognition, security and status

To strengthen and appreciate the human assets continuously by providing training

and development programs.

To create an easy to approach format for the employees in their critical situations.


Marketing Manager

Assistants Merchandising department

Assistants QCs

Marketing Department

It consists of one marketing manager, merchandising head of each merchandising

team, quality checking team and buyer wise assistants to both marketing and merchandising

team.

Objectives

Communicate with the buyer

Marketing team works as the intermediary between buyer and company and the

merchandising team works for communication between marketing team and the

production, sample or accessories department for internal communication.

Ensure the reliability of the buyer.

Working with Managing Director and CEO for finding the price of the product

before starting a new deal.

Take orders from the buyer.

Collect details regarding the style, design, fabric pattern, quantity, quality, stitching

pattern, type accessories required, number of tags required and time bound for

completing the work etc.

Give order to the merchandising team with all measurements for sample production

Negotiate with the buyer after the satisfactory sample production for getting

permission for bulk production.


Fig. 3.3 Marketing Department Structure

Pass production details to the merchandising team and to the production team for

starting production.

Finding of correct shipping agent

Steps of Marketing Process

1. Answer to the enquiry

All the enquiry of the buyer must be solved by the marketing team. The

enquiry may be through internet or through the buyer’s local agent. The

initial queries should solve at this point.

Ensuring of the reliability of the buyer.

2. Garment Costing and Price Negotiation

The cost of a single garment should calculate by considering each and every

simple portion into mind.

Quote the cost of the garment to the buyer.

If the price is acceptable by the buyer then collect the order confirmation

from them.

If there is any change in the price then try to reach a negotiable price for both

and then go for confirmation.

3. Order Confirmation

It will include the quantity of production, its quality, pattern, measurement,

date of arrival of finished product

It will include the bank details of the buyer and all the legal documents which

support the production process.

4. Identification of Merchandising team and plan the production

Once an order is ready the handle it over to a specific merchandising team

with all the details regarding the deal.

Plan the time accordingly to finish the task before the dead line.


Merchandising Manager

Merchandising team 2 to

Jr. Merchandisers

QCsAssistants

Merchandising team 1 Merchandising team 8

Sr. Merchandisers

Jr. Merchandisers

QCsAssistants

Sr. Merchandisers

Jr. Merchandisers

QCsAssistants

Sr. Merchandisers

…

Merchandising Department

The merchandising team is working as a link between in-house and the buyer. When

a new product proposal reached at the merchandising team from the marketing team then all

the remaining processing is handled by this team. At SCM there exist eight different teams

of around forty members in each.

The merchandising team plays the key role in dealing with the buyer orders. When a

new order comes to the marketing team they do the initial operations and agreed the order of

production. The next is the merchandising team for looking after the whole process of the

order from fabric purchase to shipping.

The marketing head passes a project to the merchandising manager and from there it

allocates to a particular head in merchandising team. There exist 8 different teams with


Fig. 3.4 Merchandising Department Structure

different projects. For a new assignment the merchandising team conducts a meeting with

sample department head, production supervisor, QAD staff, store head, fabric head and

marketing head. During this time they analyze the exact planning of the production and find

out the problems that may occur during the time of production and necessary solutions for

the same. This is known as ‘Style Meeting’. The style meeting also discusses the pattern of

product and their measurement details. Then according to this the sample production and

bulk production.

The daily details related to a particular buyer will handled by the particular team in

merchandising and they discuss with buyer for further details. Every department reports to

the merchandising team about the improvement in their task and finalization of their coming

processes.

Objectives

Take orders from the marketing team

Plan the production based on the allotted time – For a project the buyer will specify a

deadline. Based on the time available the merchandising head plan the whole

process. The planning is in such a way that any delay in production will not affect

the delivery process.

Dispatch the order to the concerned departments for making the sample production

Conduct a style meeting to identify the steps in the process and does feasibility study

of the assignment. The identification of problems during the production and ways to

resolve that. The style meeting includes merchandiser, QAD, production unit in

charge and supervisors of the concerned lines of production.

Development of fix sample for measurement fitting

Give order to sample department for sample production and contact with fabric and

purchase department for purchase of necessary accessories.

Follow up with the buyer based on quality and specifications.


Manager

Workers

QCs

Sample Department

This department consists of two departments in charge and number of workers. This

department is similar to that of a production department.

Objectives

Identify all the requirements of the buyer

Preparation of sample product

Collect sample fabric, accessories from fabric and store department

Produce sample of each part (sample fabric colour, design, pattern, stitching

style, size, labels etc)

Seek approval for each sample.

Produce pre production sample and check for fix sample in a dummy.

Step 1: In this the sample garment which ensures the measurement of the product.

This is known as ‘fit sample’.

Step 2: For a product there must be fabric colour, printing pattern. Embroidery work,

labels, buttons, extra style fittings etc. All these will be included in the second type

of sample. This sample is a final pattern for the product. The approved pattern passed

to merchandising team and subsequently it reaches the production department. This

is the live pattern for production process.

Check the quality of the product in each and every step of production

Hand over the sample to the merchandising department


Fig. 3.5 Sample Department Structure

Roles and Function of department members

1. Department Manager

Collect the sample requirements from the marketing team.

Seek for fabric and accessories from the fabric and store departments.

2. Workers

Make sample of separate parts of the product

Different sections of workers exists

Cutting, stitching, checking, ironing and packing.

Make finished sample according to the order from the department in charge.

3. Quality Controllers

For each line (cutting, stitching, ironing) there exist QCs.

Ensure the product quality and buyer specification.


Store in charge

Data entry Checking team

Order follow up team

Purchase coordinatorStore keeperAccounting team

Delivery section Goods checking

Purchase/Store Department

In this department two store in charge, an account team, data entry team, purchase

coordinator, store keeper and checking team. There is an order follow up exists after the

purchase coordinator. The delivery of purchased accessories to every department is

accomplished by the person under store keeper.

Objectives

Purchase accessories other than fabric and yarn for production

Checks the quality of the accessories purchased and passes it for storing.

Keep an account for the purchase and find necessary fund from the main accounting

department

Keep details regarding the amount of accessories purchased, quantity issued for the

production unit, remaining quantity to be issued for production, available accessories

in the store department.

Find the accessories other than fabric and yarn in a product and purchase it from the

concerned dealer.

Billing of the purchased materials.

Store the accessories and issue it to the production unit on demand


Fig. 3.6 Purchase/ Store Department Structure

Dept. in charge

Supervisors QCs

Workers

Fabric Department

This department consists of four fabric in charge, buyer wise supervisors and QCs.

Under supervisors there are number of labours.

Function of the department

Purchase of knitted fabric.

Check for quality of the fabric

Buyer wise fabric data keeping

Store the fabric for sample and bulk production.


Fig. 3.7 Fabric Department Structure

Finance Manager

Unit wise accounting team ESI/PF

Staffs

ISO ERP

Finance and Accounting department

This department is dealing with the overall financial activities of the company. For

getting the exact financial processing of each department an accounting subunit is working

in each department.

Objectives

To make the company eligible for all funds, loans such as Technological

upgtradation fund (TUF’s) and thus take the advantage of government support.

Provide financial information for planning of various company functions.

Helps for good decision making with financial reporting, planning framework,

benchmarking, training, consolidated, budgeting and analysis.

Calculation of wages of employees by taking attendance report from HR department.

Calculation of financial ratios and thus analyze the performance of the company.

Regulate the funds for training, visits, development of staffs and taxation.

Development of physical infrastructure of the estate in accordance with corporate

priorities

To reduce cost( functional coat) by analyzing financial performance

Facilitate banking activities


Fig. 3.8 Finance and Accounting Department Structure

Manager

Sr.QCs

Jr. QCs and Trainees

Reduction of interest rates

Quality Assurance Department

This is one of the most important among departments. The quality of the product

has very impact in the existence of the whole system. All the products are for exporting

purpose, so it should keep that norms correctly. The quality of product served reflects in the

further development of the business. The SCM Garments has a strict QAD for checking each

and every step of production. For this there exists one department head and more than

twenty five quality checking officials.

Function of the Department

Quality checking starts before taking a new assignment

Take part in the style meeting and discuss quality parameters

Work in group with all other departments

Keep representatives in all other departments

Check the samples and accessories for sample production.

In the production department random checking of bulk production

Check the quality of fabric, ensure the yarn count are correct


Fig. 3.9 Quality Assurance Department Structure

Unit in charge

Asst. Unit in charge

Line Supervisors

Cutting Stitching Checking PackingIroning

Workers

QC SupervisorAccounting

Production Department

This department deals with the production of cloths for exporting purposes. The

production department takes orders from the marketing team who has direct relation with the

buyers. This department consists of one unit in charge, one assistant unit in charge, nine

supervisors, two clerical staff and labours.

Quality Policy

The quality policy of the production department is

“Stipulated Quality with Continuous Improvement to maximize the productivity and

galvanizing for Customer Satisfaction”.

Achievement of this is through coordinated activities in the unit.

Department Structure


Fig. 3.10 Production Department Structure

Objectives

There exists a perfect planning and marketing team before reach the production

section. They decide the quantity, quality, time duration for finishing a task, the design and

all the buyer needs. The production department produces sample products for customers and

bulk production after getting the approval from the buyers.

The focus of the production department is to deliver quality assured product within

the specific time limit and ensures the production will satisfy the objectives laid by

the planning department.

Monitoring of the entire production process

Controls the quality produced

Production flow maintenance

Contact with fabric and accessories departments for getting necessary materials for

production of finished goods.

Whenever the unit in charge got a new assignment of production, it will pass

towards the Asst. unit in charge and then to the supervisors. The unit in charge is

responsible for every work in this department. The problem related to delay in

production or employee shortage will handled by the marketing department on

request. Any complaint regarding machinery or electronics equipments will

corrected by the machinery department and the EBD. Even though production of

material is an independent task this department is interdependent with all other

departments.

The production consist of two different forms

1. Pre production Sample : In this a sample of the product (say 50nos.) will produced.

The customized production is possible in this unit. So the buyer explains all the

requirements to the marketing team and subsequently the production department.

Sample of each work will show to the merchandising team. The colour pattern,

embroidery style, painting format etc. The entire buyer needs will include in the

product. Then combine the parts, make the product and seek for final approval from

merchandising team. Then fix sampling in a dummy and ensures the measurement


accuracy. If the sample is acceptable by the buyer the next stage of production

happens. Otherwise new sample produced with all added features of the buyer. The

new sample should follow all the above steps of checking.

Thus it follows three steps before bulk production. The order form, style

meeting (Quality check and analysis of the feasibility of the production) and pattern

checking.

2. Bulk Production : The approved product prepares in a bulk manner. The production

is based on the need of the buyer.

INPUT TO OUTPUT FLOW

Input (Cotton knitted fabric)

Output (Export quality finished cloths)


Cutting unit

Pattern trace upPaste size sticker

Cutting unit

Stitching unitOver lock, flat lock, singer

Checking unit

Ironing unit

Packing unit

Removal of waste threads

Cleaning of removable dirt

Measurement checking

Pattern trace up

Tag fixation (price tag, offer tag etc)

Fabric quality check

Label Stitching

Hanger pack/Solid Pack/Assort pack

Fig. 3.11 Production Process

Production Process in detail

Input - Cotton knitted fabric

Output - Export quality finished cloths

Stage 1

1. The raw material is the cotton knitted fabric and required accessories.

2. It is received from their own knitting unit.

Stage 2

1. Cutting section.

2. Checking of cloth quality before start productions

3. The measurements will given by the supervisor to the worker, which is given by the

marketing followed by the merchant team.

4. Materials cut according to the measurement and paste size tag for identification.

Stage 3

1. Stitching section

2. Special embroidery work, stone work, printing work, sequence work etc.

3. Stitching of labels- it includes the labels showing the size of the garment, the

washing time precautions, the heat resistance of fabric purity of fabric etc.

4. Stitching of garments as different parts. Make necessary folding and locks.

5. Three basic stitching exists i.e., over lock, flat lock and singer.

Stage 4

1. Checking section

2. Check for dirt, oil drops, stitching error etc. The final finishing and removal of

unwanted thread materials.

3. Cleaning section remove minute dirt and mistakes.


4. QC supervisor checks for the perfection of the product. Mistakes will report to the

unit in charge.

5. Stitching mistakes will move back for correction.

Stage 5

1. Ironing section

2. Use boiler steam iron boxes for ironing.

3. Folding of clothes after ironing.

Stage 6

1. Identify the packing style that the buyer required.

2. The price tag, offer tag etc. will punch during this phase.

3. Based on the country the buyer belongs the price tag will differ.

4. Size wise packing as well as quantity wise packing.

5. Some basic types of packing are Solid pack (Single colour and single size) and

assort pack (Multi colour and multi size). Packing type is based on the buyer

requirement.

In SCM Garments there exists a separate planning unit for production planning. They

decide the objectives for production, which include the time statistics, the quantity of

production etc. This department will have contact with other departments for collecting

required information. There exists both inward and outward communication in the

department. In the inward communication the details of production will pass by marketing

department. During outward communication the requirements of production department will

know by other departments. The planning will do before starting a bulk production. A bulk

production order will contain the shipping date. So all the process between cutting and

stitching should do between this time. The unit in charge will plan the step by step

production and keep a daily status table for verification.

The production department structure is the one which has the specific organizational

structure. It follows a hierarchical structure. The workers require separate attention and for

the same this structure is appropriate. In the supervisor level, there exists a QC staff for


ensuring the quality and the errors will report to the unit in charge. This unit is a

semiautomatic one and uses some of the available technologies for stitching. The

supervisors are all experienced in their field, so the hierarchical structure is sufficient for

attaining the target.

The staffing is done by the company itself. The higher level staff (up to supervisor

level) is appointed through interview process. The stitching unit consists of both contract

workers and others. The contract workers work under a contractor who took the contract of

production from the company. Here the contractor decides the workers for finishing his job.

The wages of this staffs will controlled by an accounting department working in this section.

The workers get additional wages for overtime working. All the workers in this department

are trained. The training for workers provided by another unit of SCM working at

Coimbatore. The harmonious working place and the stress less interaction of supervisors

improve the efficiency of workers.

The controlling by authorities is appropriate to the workers. There workers got

repeated job and this make them boring. So the interaction among the employees is based on

this concept and this makes an efficient result for the firm. The production department has

control over the quantity and quality of production. The supervisors are responsible for the

quantity and the QC staff is responsible for the quality. The overall control is done by the

unit in charge.


Logistics department

Logistics management is critical for any setup that deals with movements of physical

goods and resources. The company has many buyers and the systematic and ordered data

keeping of all these buyers is necessary for accurate product delivery. So this department

performs well in fulfilling this purpose. ERP logistics software helps the companies to

perform logistics functions easily and at a reduced price.

The company uses the ERP system known as “Visual Gems” for coordinating the

activities among different departments. This centralized system ensures the availability of

data in every department and accuracy of data. If any mistakes occurred during the time data

entry then the system will easily identifies and the management can take required actions

immediately.

Some of the benefits of ERP logistics software programs are as follows:

Operational efficiency

The very purpose of logistics is to supervise transportation and associated function.

Anybody in the department should be able to say the status of a good at a particular point of

time. This will make the logistics function more meaningful.

The typical problems could be something like this. The persons in charge of the

goods in transit would not have conveyed the status to the concerned person. Even if it was

conveyed it would not have been recorded properly and periodically. The main problem lays

in information coordination. These can be solved through a centralized database system like

ERP. ERP ensures that there is no lacuna in communication part as things are entered

automatically into the systems. The manual operations are definitely not devoid of errors

and it could cause havoc on the fortune of the company especially when there is a

miscommunication.

ERP logistics software makes a note of the movement of goods as and when they

take place. Since they are entered at several outlets it becomes accessible everywhere. This


ensures there is no discrepancy in recording the status of goods. The information can be

crosschecked repeatedly. Such counter checking will help in identifying the errors if any.

Communicating with other departments

The department of logistics needs to regularly update and answer queries raised by

the others. Since they deal with movement of goods their services are required for everyone

right from purchases department to sales department and others. Prior to ERP intervention

there was no proper means of supplying the required information to the companies because

the logistics department themselves are not aware of the status of the goods at all times.

Even if they were aware it required a lot of maneuvering and procedural delays in eliciting

the required information. Some of the factors were beyond the control of Logistics

department themselves. ERP logistics software has removed these drawbacks in two ways.

Firstly it had done away with the inherent defects of the logistics department itself. Secondly

it has paved way for the other departments to obtain the required information from logistics

department without even contacting them as everything is available in the common database.


Chapter 4

SWOT ANALYSIS

SWOT analysis is the evaluation of available Information concerning the Business

environment in order to identify internal strengths and weaknesses, and external Threats and

Opportunities.

SWOT analysis groups key pieces of information into two main categories:

Internal factors – The strengths and weaknesses internal to the organization.

External factors – The opportunities and threats presented by the external

environment to the organization.

SWOT analysis may be used in any decision-making situation when a desired end-state

(objective) has been defined. SWOT analysis may also be used in pre-crisis planning and

preventive crisis management. It can also be used in creating a recommendation during a

viability study.

Advantage of SWOT analysis

The importance of SWOT analysis lies in its ability to help clarify and summarize

the key issues and opportunities facing a business. Value lies in considering the implications

of the things identified and it can therefore play a key role in helping a business to set

objectives and develop new strategies. The ideal outcome would be to maximize strengths

and minimize weaknesses in order to take advantage of external opportunities and overcome

the threats. For example, the environment may present an opportunity for a new product but

if the company does not have the capacity to produce that product it may either decide to

invest in new plant and machinery or to just steer clear.

The biggest advantages of SWOT analysis are that it is simple and only costs time to

do. It can help generate new ideas as to how a company can use a particular strength to

defend against threats in the market. If a company is aware of the potential threats then it

can have responses and plans ready to counteract them when they happen.


The following is the SWOT analysis of SCM garments.

Helpful

to Achieving the objective

Harmful

to Achieving the objective

Inte

rnal

Ori

gin

Strengths

• Infrastructure & support of group

companies

• Support of the location &

Availability of labour

• Customized products

• Efficient supply chain management

• Clear planning of production

• High quality and punctuality in

delivery

• Strong management with an

experience of more than two

decades.

• Existing buyers

Weakness

• Heavy work load in

production unit

• Overtime working to

meet the target

• Unorganized production

department

Ext

ern

al O

rigi

n

Opportunity

• High demand from the foreign

market

• Use and throw nature of foreigners

and availability of bio-degradable

product in the company

• Recession

Threats

• Large number of

competitors

• Electricity problem of

Tamil Nadu


Fig. 4.1 SWOT analysis

Strength

Infrastructure: SCM Garments Pvt. Ltd rise to the top as a manufacturer &

exporter of knitted and woven garments has been marked by a fully-integrated

set-up for knitted garments manufacturing, with all the processes done in-house.

Support of twelve production plants to meet the target of the projects available to

the company.

Strong and dedicated management with an efficient working experience in the

textile industry over more than two decades.

An efficient Supply Chain Management to take care of every stage - from

procurement to product delivery.

A meticulous Business Planning & Management system which makes sure

streamlined methods is followed across the value chain.

Support of the location. Tirupur is the textile pool of Indian textile industry with

the advantage of skilled labour at low cost.

Awareness of buyers from existing strong buyer list. SCM Company has a

renounced buyer list with the quality and good service provided by company. So

the well known buyers will become an advertisement for the company.

Weakness

In SCM Garments, working time in the production department is around 10 hours

in a normal day. This makes the workers tired and reduces the productivity. This

becomes a weakness of the company when mistakes increased. But ensuring the

quality more number of checking needed. Thus sometimes time taken for

production increases.

Heavy work load in production department: The production department faces too

much work load to meet the time specified by the buyers. So for this a hectic

time should maintain for completing the assigned task of them.

Most of the workers in the production department are contract based. They got

daily wages based on the piece rate. So the dedication of the worker will be more


in increasing the number of products but not in high quality. So ensuring quality

more number of quality controllers is required in the production unit.

Opportunities

The exporting is the main business of SCM Garments Pvt. Ltd. Now the foreign

market is in high need of quality products. India is famous for quality product at

cheaper price. So the buyers are attracted to this market. In the Indian market

Tirupur is famous for high quantity and quality production of textile. So this

becomes a great opportunity to grow more into the market.

In the foreign situations they prefer use and throw clothing. For this purpose they

insist on biodegradable fabric for dress materials. SCM can provide this quality

materials and this attracts more foreign buyers to the company.

The recession gives some opportunity to this organization. Before the recession

time the company is filled with orders from existing buyers. No chance for taking

new buyers due to shortage of production capacity. But now the existing

customers reduce the quantity and thus company got new reliable buyers. This

increases the market name of company and in future these buyers can provide

more orders and that can meet by the newly opened production unit of the group.

Threats

Large number of players in the market. Now the attraction of the market is high,

and number of players comes in the market.

The electricity shortage and implementation of strict power cut of two hours by

the government. The industry requires support of electricity for the working of

machinery. But due to the shortage of electricity the Tamil Nadu government

implements two hour power cuts in every day. This pressures the company for the

usage of generators and this increases the cost of production.


Chapter 5

SUGGESTIONS AND CONCLUSION

5.1 ACADEMIC APPLICATION AREAS

This is a project work entitled Organization study is the practical frame work of the

academic syllabus. This project gives the idea about what theory means in the working

environment.

1. In the management process the key concept are planning, organizing, staffing,

controlling, directing etc. The entire concept becomes clear in the production unit

study of the company. The production unit is the visible part in my organization and

their working and coordination with other department is clear with this study.

2. The HR activity of the company is another area under study. How the employees are

selected and managed are the crucial area in this study. The major HR activity in this

company is methods for employee retention. This provides high experienced staffs

within the company.

3. The crisis management in the production department. In certain situations like yarn

shortage, electricity problem etc are present in the company. The yarn shortage

changes the whole planning of the production department. So for meeting the dead

line provided by the buyer the company charts new plan.

All these are some of the areas which can contribute best in the application of the theory

in the practical field. We studied how HR is working, but what are the practices for their

working can be identified through this study. Thus the study provides great exposure in

the practical field of management.


5.2 FINDINGS AND SUGGESTIONS

Findings

• Dedicated employees with the support of the management – Due to this the SCM

Garments is one among the top 5 market players in the exporting industry field of

Tirupur.

• Evaluation of the performance of employees on a regular basis improves the quality

of working – During the period of December and January the employees are

evaluated based on their performance and provides salary according to this. This is

one of the best ways to improve employee dedication.

• High retention of employees - The retention of employee in the company is around

95%.

• Around 10 hours working schedule of production department make workers tired

• There is no shift facility for the production department workers and staffs even

though the duration of working hours is high.

• Leave facility of employees are comparatively low.

• No special celebrations during the festive season.

Suggestions

• Introduce shift facility in the production unit.

• Include leisure facilities during festival times. This increases the employee employer

relationship.

• The company has a good vision for implementing Dthis company can develop

mission and objectives.


5.3 LIMITATION OF THE STUDY

1. The December January season is the peek working time of the company. So the

number of employee visited is less.

2. This a private limited company, so the financial data of the company is not available

for studies.

3. Due to the policy of keep the internal information secret the officials are not able to

give statistical data to prove the decisions and marketing.

5.4 CONCLUSION

SCM Garments Pvt. Ltd is a company having high vision and global perspective to

meet the diverse market conditions. Due to many tough situation such as recession, dollar

fluctuation etc. many garments units had to give up their long ambitions. But inspire of all

these challenges, SCM Garments was able to stand against the rough times and strive harder

and can gain more in the market. It is all because of its definite and farsighted vision within

a strong mould of culture and values. The promoters and management are fully focused on

the company’s continuous improvement in the market.

The key strength of the company is the team work and focused perspective for

attaining the organizational goal. The department heads are working to reach this destiny

and they make a good working team for this purpose. This integrated working helps the

company to face the external economic weaknesses. The economic slowdown makes add

some weakness to the company, but this provides some opportunity too. This helps to find

more buyers rather than the existing team.

The power of settled vision and supportive values are visible from the gradual

growth of the company. The strengths of the company are well settled and this can challenge

any economic situation and make a profitable market for the company.


REFERENCES

[1].Koontz, Harold., and Weihrich, Heinz. (2008). Essentials of Management, 7th ed.,

New Delhi: Tata McGraw- Hill.

[2].Drucker .Peter F;.“Management -Tasks,Responsibilities,Practices”; Allied

Publishers Pvt. Ltd; 2007.

Websites

[1].http://www.scmgarments.com

[2].http://www.scmgroups.com

[3]. http://www.ibef.org

[4].http://business.mapsofindia.com/india-industry/textile.html


Documents

2nd Draft Report