Inplant Training in Kandhan Knitss

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CHAPTER-I

INTRODUCTION

1.1 INDIAN TEXTILE INDUSTRY

Indian textile industry largely depends upon the textile manufacturing and

export. It also plays a major role in the economy of the country. India earns about 27% of

its total foreign exchange through textile exports. Further the textile industry of India also

contributes nearly 14% of the total industrial production of the economy. It also

contributes around 4% to the GDP of the country. Indian textile industry is also the

largest in the country in terms of employment generation. It not only generates jobs in its

own industry but also opens up scopes for the other ancillary sectors. Indian textile

industry currently generates employment to more than 35 million people. It is also

estimated that, the industry will generate 12 million new jobs by the year 2010.Indian

textile industry can be divided into several segments, some of which can be listed as

below

1. Cotton Textiles

2. Silk Textiles

3. Woolen Textiles

4. Readymade Textiles

5. Hand-Crafts Textiles

6. Jute and Coir

Indian textile industry is one of the leading in the world. Currently it is

estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion

by the year 2012.The textile export of the country was around US$19.14 billion in the

year 2006-2007, which saw a stiff raise to reach US$22.13 in 2007-2008.The share of the

export is expected to increase from 4% to 7% within 2012.

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Though during the year 2008-09, the industry had to face adverse agro-

climatic conditions, it succeeded in producing 290 lakhs bales of cotton comparing to 315

lakhs bales last year, yet managed to retain its position as world’s second highest cotton

producer.The initiation and development of globalization and Indian Textile industry

took place simultaneously in the 1990s.The Indian textile industry, until the economic

liberalization of Indian economy was predominantly an unorganized industry. The Indian

industry is one the largest textile industries in the world and India earns about 27% of the

foreign exchange from exports of textiles and its related products. The initiation and its

subsequent development of globalization and Indian textile industry respectively, were

effected by the Ministry of Textiles under the Government of India. The most significant

step amongst them was the introduction of “The National Textile Policy 2000”. This

policy envisaged to address the following issues

1. Increased global competition in the past 2005 trade regime under

WTO

2. Huge import volume of cheap textiles from other Asian neighbors

3. High production cost with respect to other Asian competitors

4. Use of outdated manufacturing technology

5. Poor supply chain management and huge transit cost

6. Huge unorganized and decentralized sector

Further this policy aims at increasing the foreign exchange earnings to the

tune of US $50 billion by the end of the year 2010.it includes rational projections for the

overall development and promotion of all the sectors involved directly or indirectly with

the Indian textile industry. The globalization of the Indian textile sector was the

cumulative effect of the following factors.

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1. Huge textile production capacity

2. Efficient multi-fiber raw material manufacturing capacity

3. Large pool of skilled and cheap work force

4. Entrepreneurial skills5. Huge export potential

6. Large domestic market

7. Very low import content

The Indian textile industry consists of the following sectors

1. Man-made fiber

2. Filament Yarn Industry

3. Cotton Textile industry

4. Jute Industry

5. Silk and Silk Textile Industry

6. Wool and Woolen Industry

7. Power Loom Industry

An approximate number of textile manufacturing companies operating in India are

given below

1. Badges, Emblems ribbons and allied products-175

2. Bed covers, Curtains, Cushions and other draperies-2471

3. Carpets and rugs-270

4. Embroidery and embroidered garments-848

5. Yarns and threads-1200

6. Jute Products-337

7. Kids apparel and Garments-1052Ladies apparel and garments

- 2934

8. Ladies apparel and Garments-2934

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9. Men’s apparel and Garments-2940

10. Textile chemicals, dyeing and finishing chemicals-239

1.2 INDIA’S POSITION IN GLOBAL TEXTILES AND CLOTHING

INDUSTRY

• India's position in the World Textiles Economy Second largest

Producer of raw cotton.

• Second largest producer of cotton yarn.

• Second largest producer of cellulosic fiber/yarn.

• Second largest producer of silk.

• Fourth largest producer of synthetic fiber/yarn.

• Largest producer of jute.

1.3 HISTORY OF INDIAN TEXTILE INDUSTRY

The history of textiles in India dates back to nearly five thousand years to

the days of the Harappan civilization. Evidences that India has been trading silk in return

for spices from the 2nd century have been found. This shows that textiles are an industry

which has existed for centuries in our country. Recently there has been a sizeable

increase in the demand for Indian textiles in the market. India is fast emerging as a

competitor to China in textile exports. The Government of India has also realized this fact

and lowered the customs duty and reduced the restrictions on the imported textile

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machinery. The intention of the government’s move is to enable the Indian producers to

compete in the world market with high quality products. The results of the government’s

move can be visible as Indian companies like Arvind Mills, Mafatlal, Grasim; Reliance

Industries have become prominent players in the world. The Indian textile industry is thesecond largest in the world-second only to China. The other competing countries are

Korea and Taiwan. Indian Textile constitutes 35% of the total exports of our country. The

history of apparel and textiles in India dates back to the use of mordant dyes and printing

blocks around 3000 BC. The foundations of the India's textile trade with other countries

started as early as the second century BC. A hoard of block printed and resists dyed

fabrics, primarily of Gujarati origin, discovered in the tombs of Fostat, Egypt, are the

proof of large scale Indian export of cotton textiles to the Egypt in medieval periods.

STRENGTHS

1. Indian Textile Industry is an Independent & Self-Reliant industry

2. Abundant Raw Material availability that helps industry to control costs

and reduces the lead-time across the operation

3. Availability of Low Cost and Skilled Manpower provides competitive

advantage to industry

4. Availability of large varieties of cotton fiber and has a fast growing

synthetic fiber industry

5. India has great advantage in Spinning Sector and has a presence in all

process of operation and value chain

6. India is one of the largest exporters of Yarn in international market and

contributes around 25% share of the global trade in Cotton Yarn

7. The Apparel Industry is one of largest foreign revenue contributor

and holds 12% of the country’s total export

8. Industry has large and diversified segments that provide wide variety of

products

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9. Growing Economy and Potential Domestic and International Market

10. Industry has Manufacturing Flexibility that helps to increase the productivity

WEAKNESSES

1. Indian Textile Industry is highly Fragmented Industry

2. Industry is highly dependent on Cotton

3. Lower Productivity in various segments

4. There is Declining in Mill Segment

5. Lack of Technological Development that affect the productivity and other

activities in whole value chain6. Unfavorable labor Laws

7. Lacking to generate Economies of Scale

8. Higher Indirect Taxes, Power and Interest Rates

OPPORTUNITIES

1. Growth rate of Domestic Textile Industry is 6-8% per annum

2. Large, Potential Domestic and International Market

3. Product development and Diversification to cater global needs

4. Elimination of Quota Restriction leads to greater Market Development

5. Market is gradually shifting towards Branded Readymade Garment

6. Increased Disposable Income and Purchasing Power of Indian Customer

opens New Market Development

7. Emerging Retail Industry and Malls provide huge opportunities for the

Apparel, Handicraft and other segments of the industry

8. Greater Investment and FDI opportunities are available

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THREATS

1. Competition from other developing countries, especially China

2. Continuous Quality Improvement is need of the hour as there are differentdemand patterns all over the world

3. Elimination of Quota system will lead to fluctuations in Export Demand

4. Threat for Traditional Market for Power loom and Handloom Products and

forcing them for product diversification

5. Geographical Disadvantages

6. International labor and Environmental Laws

7. To balance the demand and supply8. To make balance between price and quality

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CHAPTER-II

COMPANY PROFILE

2.1 ABOUT COMPANY

Kandhan knitss is a vertically integrated One Star Export House specializing in

manufacturing and exporting of T-shirts, Sweat Shirts, Pyjamas and Night wear for men,

women and children. Incorporated in the year 2003 and run by a professional and

enterprising management. Kandhan Knitss exports quality knit wears to different

provinces across Europe.

A Highly competitive entity, with strengths in print work and embroidery,

Kandhan Knitss employs 500 managerial and skilled labours and produces 1,50,000

pieces of knitwear per month. An 8.5 USD million worth company, Kandhan Knitss is

furnished with imported high-tech machinery and is endorsed with the ISO 9000:2001

certification.

2.2 MANAGEMENT

Two enterprising businessmen with close to four decades of combined experience

in textile industry manage Kandhan Knitss. Mr.P.Kanakaraj and Mr.P.Dhanapal hold key

positions as partner and CEO of the company respectively.

Equipping the best technologies and infrastructural facilities and continuously

upgrading the quality standards, the management is taking Kandhan Knitss to new

heights of quality and recognition.

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2.3 VISION

With the vision “To become a premier league player in the global apparel

industry”, Kandhan Knitss offers its clients high quality knitwear to their specifications.Delivering the products within the scheduled time without compromising on quality helps

Kandhan Knitss gain the confidence and appreciation of clients across the Europe.

2.4 INFRASTRUCTURE

Kandhan Knitss spread over 1, 00,000 square feet of excellent infrastructure;

Kandhan Knitss manufactures excellent quality Knitwear that is well received across

numerous European countries. The systematically planned manufacturing unit enables

Kandhan Knitss with optimum production capacity and quality outputs. The production

process strives continually to be innovative and creative to bring novelity in fabrics with

latest printing and embroidery techniques. Kandhan Knitss has dedicated product

development and garment design teams for each product group and in some cases for

individual customers.

2.5 MACHINERY

The most modern knitting, printing and embroidery machines furnish the

production facility of Kandhan Knitss. Imported from renowned manufactures, thesemachines facilitate the company to provide clients their precise knitwear requirements

with the requisite quality criteria.

400 Sewing machines, 25 knitting machines, Compactors, 6 Embroidery

machines, 8 Printing machines, 10 Flat knit machines, 2 spreading machines(Gerber),

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Sequins, Carding Embroidery machines and full electronic jacquard wrapper machines

allow Kandhan Knitss to produce 1,50,000 pieces of knitwear per month.

2.6 PRODUCTS

A Certified quality export house, Kandhan Knitss manufactures and exports

extensive knitwear for Men, Women and Children. Using 100% quality cotton, the

product range of Kandhan Knitss include:

• T Shirts & Polo Shirts

• Sweat Shirts

• Casual Wear

• Work Wear

• Pyjamas

• Beach Sets

• Leggings

• Night Dresses

The products are of highest quality standards and conform to the specific

requirements of each client.

2.7 PROCESS

There are three processes to be carries out in the company. The processes are as

follows

• Fabric Production

• Embellishments

• Garment Production

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2.8 FABRIC PRODUCTION

A well-known entity for knitted fabrics Kandhan Knitss carries out the entire

process of knitting to finishing in-house. For woven fabrics Kandhan Knitss has strategic

relationship with prominent mills both in Turkey and overseas. Kandhan Knitss has a

technical research and development team to find the latest trends in the market. Team

members work on the latest available techniques in the fiber, yarn, knitting, dyeing and

finishing sectors and find the best efficient ways for the applications in-house.

Kandhan Knitss provides its customers the best available fabrics that satisfy their

needs by maintaining a good physical and color performance. Also with the restrictions

the company applies in using certain dyes and the treatment facilities, its fabric is

harmless to skin and the environment.

2.9 EMBELLISHMENTS

Chemicals and materials that use in the embellishment processes are selected

carefully to maintain durability of the products. Kandhan Knitss adds value to the process

with a wide variety of embellishment techniques and designs such as placement and

frequency printing, embroidery and badges as adding fashionable value to the garment is

imperative for the apparel business. The chemicals that used at Kandhan Knitss do not

have risk to health nor the environment during their manufacture, use or disposal.

The clients gets benefit from the latest washing and garment techniques that

Kandhan Knitss provides through well-equipped and experienced partner companies.

Having in-house facilities for printing and embroidery enables the company with faster

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response to its customers. Kandhan Knitss either provides graphic design resources to its

clients or they may send their own art work for development.

2.10 GARMENT PRODUCTION

With the modern purpose built factories, Kandhan Knitss aims to satisfy its

customer by assuring that the products and services meet the contractual requirements of

quality and safety and that those products are delivered on time. All levels of production

are monitored for prevention of faults rather than detection, starting from raw materials to

finished goods which are ready for dispatch. The company’s contract with TUV-Sud lab

ensures both quality and safety standards are consistently met.

The biggest asset of Kandhan Knitss is the skills and attributes of its highly

motivated employees. The company supports this with continuous training, correct tools

and equipments to complete the job accurately in a healthy and safety environment which

is second to none. Kandhan Knitss believes that “commitment at all levels to getting it

right first time” is essential to the successful implementation of the policies. Each

operator is set with individual standards to work and inline quality control monitors each

operation against these agreed standards.

2.11 QUALITY

Using state-of –the –art technology for every process, Kandhan Knitss applies

internationally defined knitwear production processes at its facility. An ISO 9000:2001

certified company, quality procedures at Kandhan Knitss cover manufacturing, packing

& storing and delivery of the finished goods. The quality monitoring processes in place

are recognized to be of industry leader standard with the strongest emphasis being on

prevention rather than cure. The results of the stringent and ever improving procedure has

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resulted in low return manufacturer [RTM] rate at below 0.5% target with very high

Acceptable Quality Level [AQL] pass rates.

Quality tests are done exclusively by only TUV sub lad to get precise report on thefabric. Tests are performed as per buyer requirements such as ISO, ASTM[American

Society For Testing and Materials] etc.., Working with TQM[Total Quality Management]

principles Kandhan Knitss equips each of its personnel with the knowledge and resources

required to successfully contribute towards the on-going search for excellence.

2.12 PATRONS

The list of satisfies clients is a testimony to Kandhan Knitss commitment towards

customer satisfaction. The repeat orders and continual assignments for the existing clients

emphasize the dedication and professionalism of Kandhan Knitss. Catering to some of

the most well-known brands across Europe, the company’s clients include

GEMO FRANCE

MONOPRIX FRANCE

OKAIDI FRANCE

BONMARCHE UK

TESCO UK

DEBENHAMS UK

ATLANTIC POLAND

TEMA TURKEY

S.OLIVER GERMANY

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CHAPTER-III

ORGANISATION CHART

EDP ACCOUNTSHUMAN

RESOURCEPURCHASEDOCUMENTATION

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CHAPTER-IV

HUMAN RESOURCE DEPARTMENT

4.1 HUMAN RESOURCE

The man is ultimate resources of the organization because they think, speak, so

that utilization of this resource is very critical. Every success of organization is depending

on efficient and effective man power. HR starts when a man enters in the organization

and its end, when he leaves the organization. HR deals with the human dimension.

Success or failure of an organization depends on the effective coordination of the

resources such as money, material, machinery and men. Among these, the role and

operation of men is the most complex. All the activities of an organization are initiated

and completed by the persons who make up the organization. Therefore, people are the

most significant resources of any organization. HRM is known by different names –

Personal management, personal administration, man power management.

4.2 CONTRIBUTION OF HRM TO THE ORGANISATION

1.Helping the organization to search its goal

2.Employing the skills and the activities of the workforce efficiently

3.Providing the organization with well trained and well-motivated employee

4 Increasing to the fullest the employee’s job satisfaction

5.Developing and maintaining quality of work life

6.Communication

7.Helping to other department and function

HRM includes the very Interesting phenomena that is HRD. Human resource

development (HRD) is phenomenal for the manufacturing and service industry. HRD

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deals with up gradation of skills for labours and executives, planning and allocation of

work, monitoring and assessment of performance. One of the most important tasks is

upgrading the skills and knowledge of the human resource from time to time in tandem

with the development of technology and trade.

4.3 HR DEPARTMENT STAFFS

VINOTH KUMAR.R [HR MANAGER]

SUBRAMANIAN [HR ASSISTANT]

GOVINDASAMY [HR ASSISTANT]

JAYABALAN [TIME KEEPER]

MALATHY [RECEPTIONIST]

SIVAKUMAR [ELECTRICIAN]

RAMESH KUMAR [ELECTRICIAN]

PATHMAKUMAR [DATA ENTRY OPERATOR]

HR PlanningJob AnalysisRecruitment and SelectionTraining and DevelopmentCompensationPerformance AppraisalCommunicationConflict solutionPersonal auditOrganizational DevelopmentRelationshipCareer Planning and Development

OUTPUT

1. Productivity2. Improved

Worklife3. Satisfaction

andMotivation

H

R M

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4.4 HRM IN TEXTILE INDUSTRY

Textile is industry oriented field where lots of processes are there to carry out rawmaterial\fibers to finished garment. In this we have required technical skillful and

motivated peoples. For textile, a little bit differences in the scope, approach in HR

concept, because here peoples think differently, expect differently. In textile,

environment is different as compare to other origination or industry, here more

interaction to be carryout around 80% manager spend time in handling of human

resources. A very common problem always exist in every textile oriented that is conflict (

grievance) in intra department or in worker and management, so this HR(HRM) play as a

tool to resoles this problem efficiently .HRM increase the communication ,coordination

and involvement so that chances of misunderstanding will be minimum. Even in

organizations with educated and experienced staff, due to the lack of cooperation on part

of the management, the department cannot carry out its functions.

4.5 EMPLOYEE DETAILS IN KANDHAN KNITSS

Total number of employees = 500

Male employees = 327

Female employees = 173

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S.NO DESIGNATION TOTAL

MEMBERS

1 MANAGING PARTNER 1

2 CEO 1

3 MERCHANDISERS 66

4 EDP 2

5 FINANCE DEPARTMENT 8

6 HRM DEPARTMENT 9

7 DOCUMENTATION 4

8 PURCHASE 3

9 ALL OTHER EMPLOYEES 406

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TOTAL = 500

4.6 TRAINING PROGRAMS

The training programs are conducted in Kandhan Knitss at appropriate time.

Fresher are given the job specification and full details about the job and on the job

training are given to the employees. There is a separate trainee is appointed to conduct

the training programs effectively.

4.7 PERFORMANCE EVALUATION

The performance of the employees are calculated on the basis of the total

production of the individual , the quality of the products, delivery time, skills and

knowledge acquired, behavior with other employees etc..,. Based on these factors the

performance can be evaluated and the measures are given.

4.8 DUTIES OF HR DEPARTMENT

Payroll calculation

Attendance calculation

Providing safety measures

Induction and Placement

Training and Development

Motivation

Performance Appraisal

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4.9 OTHER FACILITIES TO EMPLOYEES

Drinking water

Urinal and toilet

Two time Tea Breaks

Average age of the employees is 28 years

Most of the employees are coming from the nearest areas

Bus facility is available for the employees

4.10 REGISTERING THE PRESENCE OF EMPLOYEES

The employees should register their presence through scratching system. Every

employee is provided an Identification card and a bar coded number is provided in the

back side of the ID card. The employees should scratch the Id card when they entering

into the work place and their presence is automatically registered in the system. A time

Keeper is appointed so that he calculates the timings of the employees.

4.11 WORK PLACE CONDITIONS

The employees are working in a good environment so that their safety is ensured

to the maximum. The safety measures provided by Kandhan Knitss are

Safety nose cover

Fire extinguishers

Emergency exists

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4.12 JOB RESPONSIBILITIES AND AUTHORITIES

NAME : MR.NINOTHKUMAR.R

DESIGNATION : PERSONAL AND HR MANAGER

DEPARTMENT : PERSONAL AND HR

RESPONSIBILITY AND AUTHORITY

1. Staff In & Out time monitoring, worker strength and monitoring newly joined persons

2. Production department (cutting to packing) day wise status checking and

forwading to CEO attention

3. Vehicle trip checking and forwarded to same for CEO attention

4. Staff monthly attendance details checking and forwading tocashier

5. Staff P.F, E.S.I statement checking and salary details checking and worker pay

bill checking

6. Monthly P.F and E.S.I calculation verifying and arranging to send the same to P.F

office

7. Monthly worker pay-slip checking and signing

8. Worker monthly OT calculation and paid vouchers verification

9. ISO and various department meetings arranging and ISO procedure implementation

10. In other work related to statutory compliance will be followed immediately

11. Buyer code of conduct followed and implemented

12. Worker meeting, social compliance meeting to be conducted periodically

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CHAPTER-V

PRODUCTION DEPARTMENT

5.1 PRODUCTION PROCESS

Kandhan Knitss produces 1, 50,000 pieces of knitwear per month. It includes T-

shirts, Sweat Shirts, Pyjamas and Night wear. Kandhan Knitss produces quality knitwear

so that the clients make a regular purchase from the company. Kandhan Knitss exports

the products mainly to the European countries. The clients give orders and the company

has to purchase all the raw materials and other materials required for the production

process. The main three production process is

• Fabric Production

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• Embellishments

• Garment Production

5.2 FABRIC PRODUCTION

A well-known entity for knitted fabrics Kandhan Knitss carries out the entire process of

knitting to finishing in-house. For woven fabrics Kandhan Knitss has strategic relationship with

prominent mills both in Turkey and overseas. Kandhan Knitss has a technical research and

development team to find the latest trends in the market. Team members work on the latest

available techniques in the fiber, yarn, knitting, dyeing and finishing sectors and find the best

efficient ways for the applications in-house.

Kandhan Knitss provides its customers the best available fabrics that satisfy their

needs by maintaining a good physical and color performance. Also with the restrictions

the company applies in using certain dyes and the treatment facilities, its fabric is

harmless to skin and the environment.

5.3 RAW MATERIALS USED FOR FABRIC PRODUCTION

Cotton

Fur

Flax [linnen]

Jute

Leather and animal skins

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Polyester synthetic fibers

Rubber

Silk

Straw

Wool

Fabric construction involves the conversion of yarns, and sometimes

fibers, into a fabric having characteristics determined by the materials and

methods employed. Most fabrics are presently produced by some method of

interlacing, such as weaving or knitting. Weaving, currently the major method of

fabric production includes the basic weaves, plain or tabby, twill, and satin, and

the fancy weaves, including pile, Jacquard, dobby, and gauze. Knitted fabrics are

rapidly increasing in importance and include weft types and the warp types,

Rachel and tricot. Other interlaced fabrics include net, lace, and braid.

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5.4 EMBELLISHMENTS

Embellishing comes from the word embellish which is a meaning to make

beautiful, this making beautiful can be carried out through decoration or ornamentation.

In literature it can be referred to as an exaggeration or the addition of fictitious or

ornamental details to a true account of facts. Chemicals and materials that use in the

embellishment processes are selected carefully to maintain durability of the products.

Kandhan Knitss adds value to the process with a wide variety of embellishment

techniques and designs such as placement and frequency printing, embroidery and badges

as adding fashionable value to the garment is imperative for the apparel business. The

chemicals that used at Kandhan Knitss do not have risk to health nor the environment

during their manufacture, use or disposal.

25



5.5 RAW MATERIALS USED FOR EMBELLISHMENTS

Glass beads

Acrylic beads

Sea shells

Natural stones

Wooden beads

Metal beads

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The raw materials are purchased from the market in and around Tirupur. The

research team search for the quality raw materials and also at low cost. The process is

carried out inside the company. There is no outsourcing by the company.

Fabric embellishments include several categories of arts and crafts. The kind of

decorative embellishment you choose will depend upon the final look you want to

achieve. Almost every type of fabric can be embellished, though the methods will vary to

suit the nature of the weave.

Fabrics can be decorated with crochet, embroidery, fabric paints or fabric

appliques. Bead work is a popular embellishment that is often worked into cross stitch

and crochet work and sewn onto fabric. Some appliques are transferred with a hot iron

and others are sewn in. Adding sequins or buttons to clothing is a matter of a few stitches

and can be easily done even by beginners.

5.6 GARMENT PRODUCTION

With the modern purpose built factories, Kandhan Knitss aims to satisfy its

customer by assuring that the products and services meet the contractual requirements of

quality and safety and that those products are delivered on time. All levels of production

are monitored for prevention of faults rather than detection, starting from raw materials to

finished goods which are ready for dispatch. The company’s contract with TUV-Sud lab

ensures both quality and safety standards are consistently met.

27



Garment production planning involves creating a schedule for the mass production

of clothing. Producing garments requires a lot of coordination and schedule management.

Every production requires different elements, depending on how large the production is

and what is being produced. The time frame for a production depends on the elements of

the production, but generally speaking, planning for the production is the same.

5.7 JOB RESPONSIBILITIES AND AUTHORITIES

NAME : MOORTHY.P

DESIGNATION: PRODUCTION MANAGER

DEPARTMENT: PRODUCTION

RESPONSIBILITY AND AUTHORITY

1. Receive Order sheet from concern merchandiser

2. Receive the samples pieces and further comments for bulk production fromconcern merchandiser

3. Order planning

4. Get the Trim details from the Accessories Department

5. Give the cutting quantity to Cutting Department

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6. Follow up with Printing & Embroidery Departments

7. Placement of the section for production

8. Coordinate with final inspection and observes what kind of mistakes arise

during the production9. Checking and Packing monitoring

10. Reporting to management daily production status

CHAPTER-VI

MERCHANDISING DEPARTMENT

Normally the garment companies do not require marketing department. Because

the company manufactures the goods and services on a contract basis. It is also termed as

contract manufacturing. The company gets orders from the foreign companies and they

produce the goods and services according to their needs. Before giving the order the

foreign companies appoint third party to audit the company and the industry to check

whether there is good environment for the production process. The third party audits all

29



the departments and he/she should submit a report to the client companies. Based on the

report submitted by the third party assigned by the client, the order can be placed.

There are no marketing persons required for the company. The products after it ismanufactured it is exported to the clients who gives the order. The third party auditing

can be done at any time and the auditing process takes some time. Kandhan Knitss do not

supply their products and services to the local customers.

There are 2 types of merchandisers in export houses - buyer and production

merchandisers. Buyer merchandisers act as a link between the buyer and the

manufacturer. They have the responsibility of ensuring that the product is developed as

per the requirements of the buyer so in between they have the responsibility of sourcing,

sampling and communication with the buyer. The production merchants on the other

hand are a link between production and buyer merchants. They have the responsibility of

ensuring that the production goes as per the schedule and as per the requirements.

6.1 THE CANDIDATE RESPONSIBILITIES

• Will have to work for Merchandising, Sourcing, Vendor Development,

Independently. Handling of Buyers.

• Would be independently taking care of buyers' account, correspondence,

interaction with buyers/buying agencies, costing, submission of samples, ensuring

adherence of buyer’s instruction.

• Client Co-ordination.

• Will have to deal with all in house departments.

• Candidate must have to maintain planning and management of department.

A garment export unit generally has many departments like stores, cutting,

production, packing, checking etc., in which Merchandising department a linking device

30



of all. The job of a merchandiser is to coordinate with the entire department in the office

as well as the customers. Merchandiser meets the buyers and collects the details of their

requirements etc., to develop the relationship with the customer.

A spec sheet (specification sheet) of the garment with sketch, measurement (will

be mentioned before or after wash measurements.) and description is received from the

buyer with or without sample .A general format of the spec sheet contains the sketch of

the garment on the left side and the measurement on the right side. Descriptions of the

stitching method, placement and design of embroidery or printing, additional accessories,

color and type of buttons, threads etc. are mentioned at the back side. Additional sheets

are added if the garment had more detailed work to do. Wash care label details are

mentioned. Type, size, color and shape of the buttons are given. Placement of labels,

prints, embroidery is given. Packing instructions are also given in this sheet which

includes type, color size of the carton, marks and numbers to be printed on it, poly bags

size and details printed on it, clips ,boards, tissue papers, required fold.

Detailed study is made from the spec sheet and the raw materials required for

sample making is ordered by the merchandiser who includes fabric, thread, buttons, zips,

labels, etc., the color and quality of the things ordered is approved by the merchandiser

and also he should contact printing unit, dyeing unit, embroidery unit to make samples of

printing, dyeing, embroidery respectively. This is also approved by the merchandiser.

Sometimes garments will be dyed after stitching, care should be taken while

ordering raw materials for this, since the accessories should not catch dying color. Also

the thread used to stitch these garments must choosy, depending upon the buyers’ request

whether to get the dying color or not. Ready to dye thread should be used if the thread

should be dyed after stitching.

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

31



samples are made and sent if the buyer required the same. After the sample is approved

by the buyer or even before that, costing sheet is prepared by the Merchandiser. In

costing sheet, the price of the fabric, accessories, prints etc per garment is listed and the

price is fixed by adding margin. This cost is got approved from the Manager or the persons concerned and quoted to the buyer. Purchase order is received from the buyer

which includes

• PO no/date

• Buyer/Consignee

• Garment no

• Measurement

• L/C date

• Last date within which shipment to be reach the destination.

• Sign and Seal

• Order validity date

After receiving PO from the buyer merchandiser issues PO for the fabric unit, buttons, thread, dyeing unit, printing, embroidery and other raw materials. These raw

materials’ are checked and color, quality and size approved by the merchandiser.

After discussing with the production manager, Work Order is issued to all the

departments by merchandiser along with the trim sheet. Work order consists of order no

and description of the order. Trim sheet is a sheet in which the sample piece of fabric and

accessories are stuck and distributed to the entire department for them to be aware of

trims used for a certain order. Approved sample piece is sent along with this work order

to the cutting department first from where it passes to all the departments the raw

materials pass through.

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The bulk fabric is passed through the cutting dept., stitching dept., washing or

dyeing unit, and then the packing department. As per the requirement printing or

embroidery is done after stitching or cutting.

In packing department merchandiser checks and approves a piece for the type

of packing and the packing materials. After packing in the individuals packages, they are

packed in the cartons. Number of pieces to be packed and the marks and numbers to be

printed on the carton is also instructed by the merchandiser to them. A packing list is

prepared by the Merchandiser with all the packing details mentioned in it and given to the

Packing department. A quality checker assigned on behalf of buyer checks and approves

the garments, after which they are shipped.

6.2 MANAGING ORDER ROUTE CARD AND PRODUCTION TIME

TABLE

Merchandiser has to manage every single production schedule and order route

card that helps to follow-up the execution in the planned way. It is expected to be

acknowledged of the various descriptions like: design, no. of modules, and no. of operators, how many processes, and date of dispatch, quantity, output capacity, and

deadlines in the schedules.

The sub-ordinates are normally assigned to follow-up with execution of the plan.

Merchandiser plans the activities depending on the essentials or non-essentials, and top

priority are given to the most essential tasks. This is customary that the essential activities

are handled personally or with the support of junior merchandisers/sub-ordinates.

In a "daily schedule", merchandiser has to carry-out and categorize which is the

most significant and urgent task. The activity that has to be focused with full attention to

sweep-off non-essential activities and have to be to be corrected by prioritizing to meet

the deadlines.

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6.3 USING ROUTE CARD TO RESCHEDULE ACTIVITIES

To get updated on the current status on the order, the route cards should be

utilized. The latest status can be fed into the computers. In case, the buyer ask for the

goods prior to the deadline, then merchandiser has to reorganize the schedules to

accomplish tasks, output capacity, no. of pieces to be produced daily, substitute

arrangements, time availability, supply time, scheduling critical ratio, etc.

6.4 SUBMITTING PRE-PRODUCTION SAMPLES

The pre-production samples should be provided on time to the concerned buyers.

Quality of the sample must be verified. If required, revised samples should be made

available to the buyers. Merchandiser should adjust to the required changes demanded by

the buyer. The execution of bulk orders should be made only after samples are approved

by the buyer.

In-process inspection denote between any tasks in order-execution. In case of non-

conformation, it is better to focus on the concerns of quality. Merchandisers that work on

complete orders have to check deviation to the production teams so that any amendmentscan be done to avoid the non-conformities.

6.5 SOLVING SHORTAGE PROBLEM

The merchandiser should know about the dearth of any commodity such as fabric,

yarn, etc... From the beginning. Actions should be taken immediately to arrange requiredmaterials, after discovering the shortage. It is expected that the merchandisers should

verify quality of the goods prior to execution of the order. If the material is found

unavailable, the superior should be informed about the concern.

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CHAPTER-VII

DOCUMENTATION DEPARTMENT

The export process is made more complex by the wide variety of documents that

the exporter needs to complete to ensure that the order reaches its destination quickly,

safely and without problems. These documents range include

Bills of entry,

Foreign exchange documents,

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Export permits,

Proforma and commercial invoices,

Certificates of origin and health, and

Pre-shipment inspection documents

The letter of credit and the bill of lading,

The airway bill or the freight transit order.

Most exporters rely on an international freight forwarder to handle the export

documentation because of the multitude of documentary requirements involved in

physically exporting goods and it is strongly recommended that you also make use of a

freight forwarder to help you work your way through the maze of documentation.

Trade overseas needs the support of export documents. Operations with foreign

countries are made very complex, the sellers must explain what they are selling and the

buyers must know what they are buying. For that reason, we use the following export

documents

Bills,

Notes and weight packing.

Letters of credit

Exporters run a series of risks when venturing into new lands. First of all, they

risk not being paid by the importer in the foreign country. Secondly, if they do not know

the political and economic situation of the country they are exporting to, they risk losing

their money. Another risk they take is related to the exchange rates. Export documents

exist to relieve these risks

7.1 THE BENEFITS OF DOCUMENTATION

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Documentation is a key means of conveying information from one person or

company to another, and also serves as permanent proof of tasks and actions undertaken

throughout the export process. Documentation is not only required for your own business

purposes and that of your business partner, but also to satisfy the customs authorities in both countries and to facilite the transportation of and payment for goods sold.

One value of documentation is that copies can be made and shared with the parties

involved in the export process (although you should always ensure that you make

identical copies from an agreed-upon master - it is no use making changes without the

other party's agreement and then presenting these as the "latest" copies). If the

documentation is complete, accurate, agreed upon by the parties involved and signed by

each of these of these parties (or their representatives), the document will represent a

legally binding document.

7.2 FUNCTION OF EXPORT DOCUMENTATION

Export documentation may serve any or all of the following functions:

An attestation of facts, such as a certificate of origin

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

of an airway bill

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

37



A promissory note; that is, a promise to pay

A demand for payment, as with a bill of exchange

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

A receipt for goods received.

There are five broad categories of documentation you will encounter when

exporting. These are:

1. DOCUMENTS INVOLVING THE IMPORTER

The proforma invoice

The export contract

The commercial invoice

The packing list

Letter of credit

Certificate of origin

Certificates of health

Fumigation certificate

Pre-shipment inspection certificate

2. DOCUMENTS REQUIRED TO EXPORT GOODS

Letter of credit

Commercial invoice

Bill of entry export

Form F178

Form NEP (no foreign exchange proceeds)

Form E (repatriation of foreign exchange earnings)

Export permit

Export registration form

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http://www.exporthelp.co.za/modules/17_documentation/importer/commercial_invoice.html

http://www.exporthelp.co.za/modules/17_documentation/importer/packing_list.html

http://www.exporthelp.co.za/modules/17_documentation/importer/letter_of_credit.html

http://www.exporthelp.co.za/modules/17_documentation/importer/certificates.html




http://www.exporthelp.co.za/modules/17_documentation/export_goods/loc.html

http://www.exporthelp.co.za/modules/17_documentation/export_goods/commercial_invoice.html

http://www.exporthelp.co.za/modules/17_documentation/export_goods/customs_declaration_form.html

http://www.exporthelp.co.za/modules/17_documentation/export_goods/exchange_control.html



http://www.exporthelp.co.za/modules/17_documentation/export_goods/export_permit.html

http://www.exporthelp.co.za/modules/17_documentation/importer/packing_list.html

http://www.exporthelp.co.za/modules/17_documentation/importer/letter_of_credit.html





http://www.exporthelp.co.za/modules/17_documentation/export_goods/loc.html

http://www.exporthelp.co.za/modules/17_documentation/export_goods/commercial_invoice.html

http://www.exporthelp.co.za/modules/17_documentation/export_goods/customs_declaration_form.html




http://www.exporthelp.co.za/modules/17_documentation/export_goods/export_permit.html

http://www.exporthelp.co.za/modules/17_documentation/importer/commercial_invoice.html



3. DOCUMENTS REQUIRED FOR TRANSPORTATION

Bill of lading

Air waybill

Freight transit order Road consignment note

Export cargo shipping instruction

4. DOCUMENTS REQUIRED FOR PAYMENT

Commercial invoice

Letter of credit

Transport documents

5. INSURANCE DOCUMENTS

Premium bills

CHAPTER-VIII

ELECTRONIC DATA PROCESSING

8.1 DEPARTMENT STAFFS

EDP INCHARGE : MR.VIJAYAKUMAR

ASSISTANT : RAVIKUMAR

The textile industries have changed tremendously in the last few years. To sustain

competitive advantage, companies must re-examine and fine-tune their business

processes to deliver high quality goods at very low costs. Most companies have now

outsourced manufacturing to low labours. Globalization has led to increase in

39

http://www.exporthelp.co.za/modules/17_documentation/transportation/bill_of_lading.html

http://www.exporthelp.co.za/modules/17_documentation/transportation/air_waybill.html

http://www.exporthelp.co.za/modules/17_documentation/transportation/freight_transit_order.html

http://www.exporthelp.co.za/modules/17_documentation/transportation/road_consignment_note.html

http://www.exporthelp.co.za/modules/17_documentation/transportation/exporter_instructions.html

http://www.exporthelp.co.za/modules/17_documentation/payment/commercial_invoice.html

http://www.exporthelp.co.za/modules/17_documentation/payment/loc.html

http://www.exporthelp.co.za/modules/17_documentation/payment/transport.html

http://www.exporthelp.co.za/modules/17_documentation/transportation/bill_of_lading.html

http://www.exporthelp.co.za/modules/17_documentation/transportation/air_waybill.html

http://www.exporthelp.co.za/modules/17_documentation/transportation/freight_transit_order.html

http://www.exporthelp.co.za/modules/17_documentation/transportation/road_consignment_note.html

http://www.exporthelp.co.za/modules/17_documentation/transportation/exporter_instructions.html

http://www.exporthelp.co.za/modules/17_documentation/payment/commercial_invoice.html

http://www.exporthelp.co.za/modules/17_documentation/payment/loc.html

http://www.exporthelp.co.za/modules/17_documentation/payment/transport.html



competition and quality awareness and therefore it has become very important for the

textile industry to integrate itself with information technology to survive. ERP is an

integrated system that allows information to enter at a single point in process & updates a

single shared database for all functions that directly or indirectly depend on thisinformation.

ERP solutions came into existence in corporate world due to various problems

faced in Management Information System (MIS), Integrated Information System (IIS),

Executive Information System (EIS), Corporate Information System (CIS), Enterprise

Wide System (EWS), and Material Requirement Planning (MRP), Manufacturing

Resource Planning (MRP II).

8.2 ERP

“ERP is defined as an integrated, multidimensional system for all

functions based on a business model for planning, control & global optimization of entire

supply chain by using IT technology.”

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8.3 NEED OF ERP IN INDUSTRY

ERP covers the techniques and concepts employed for the integrated management

of business as a whole with objectives of effective use of management resources to

improve the efficiency of the organization. This system designed to model and automatic

many of the basic process of the company from the finance to the shop floor with a goal

of integrating information across the company and eliminating complex expensive links

between computer systems. It produces the dramatic improvements when used to connect

parts of an organization and integrate its various processes.

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ERP facilitates a companywide integrated information systems covering all

functional areas such as manufacturing, sales and distribution ,accounts

,payables,receivables,inventory ,human resources, etc. ERP integrates and automates

most business processes and shares information enterprise wide in real time thus

improving customer service and corporate integration. ERP solution includes

manufacturing marketing as well as finance sectors.

The main steps in development of such a software package are:

• Defining the problem

• Designing the programme

• Debugging

• Testing

• Documentation

• Maintenance

• Redesign

8.4 CAD

Computer-aided design (CAD) is the use of computer technology for the design of

objects, real or virtual. CAD often involves more than just shapes. As in the manual

drafting of technical and engineering drawings, the output of CAD must convey

information, such as materials, processes, dimensions, and tolerances, according to

application-specific conventions

42



The textile designs are the original works of the designers. CAD helps them to

visualize and see their imaginative design in final form without producing any sample

swatch. Sometimes, the customers too provide ideas for designing according to their

particular requirement. These are in the form of painted artwork or fabric samples andsometimes film negatives. The textile designers, with the help of CAD, convert them into

workable designs. For this to be done the sample is scanned with the help of either

scanners or digital cameras and then they are edited to obtain the final design.

8.5 CAD IS USED IN

• TEXTILE DESIGN SYSTEM: Most fabrics, yarn dyes, Plain weaves, jacquards

or dobbies can be designed using a CAD.

• KNITTED FABRICS: Some systems specialize in knitwear production and final

knitted design can be viewed on screen with indication of all stitch formation.

• PRINTED FABRICS: The print motif can be resized, recolored, rotated or

multiples depending on the designer’s goal. New CAD systems are coming whichhave built in software to match swatch color to screen color to printer color

automatically.

• SKETCH PAD SYSTEMS: There are graphic program that allow the designer to

use pen or styles on electronic pad or tablet thereby creating freehand images

which are stored in the computer.

• EMBROIDERY SYSTEMS: It requires assigning color and stitch to different

parts of the design. Data is fed and multiple head work. Scanned images can be

used also.

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http://articles.textileclass.com/shedding-of-weaving-in-loom-tappet-dobby-jacquard-shedding/







• DIGITIZING SYSTEMS: It can be done by defining the X, Y co-ordinates of

series of selected prints around the pattern.

• GRADING SYSTEMS: Certain pointes considered as “Growth Points” at which

the pattern has to be increased to accommodate different body siz3e like 32/34/36

and so on.

• MARKER MAKING SYSTEMS: It ensured minimal wastage of fabric. Striped

fabric can be done also.

• CUTTING OPERATIONS: Automated Cutting machines can be used after

direction from marker making.

CHAPTER-IX

FINANCE DEPARTMENT

Finance department is responsible for the financial administration and

management of the company in compliance with the financial rules and the financial

44



guidelines acting in this company. Finance department concerns finance flow

management of the company and is aimed to serving staff, managers, the Board of

Directors and stakeholders and securing the financial health of the company.

9.1 FINANCE DEPARTMENT GOAL AND SERVICES

The main goal of The Department is to provide the internal and external users of

financial statements with relevant, accurate and timely information and to guarantee that

the required financial revision is closely adhered to in order to protect the assets of the

company. The Department takes care of finance flow to ensure that the company operates

within its financial regulations and satisfies various external financial requirements. It

also ensures that the corporate financial records comply with internal and external audit.

If to look through the activity of The Department, there can be picked out the following

main services it renders

• Payment of invoices and expenses

• Income collection and salary management

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

• Monitoring and managing financial plans

• Auditing and reporting financial condition

• Giving advice on pricing and costing

9.2 FUNCTIONS OF FINANCIAL DEPARTMENT

TO PREPARE THE BUDGET

It is duty of finance department of company to make the budget before actual

45



providing money to any department. It will be helpful to fulfill each department with

minimum cost. Finance department can take the past records from respective department.

It will be useful for making better budget.

FINANCIAL MANAGEMENT

In this function finance department gets money from capital market at very low

risk and cost. Finance department analyzes all the resources of funds and create a good

financial structure of company. In this structure, finance department analyze whether it

will decrease the overall cost of capital on Average basis or not.

MANAGEMENT OF INVESTMENTS OF COMPANY

After making financial structure, finance department invests debenture holders and

shareholders money in best projects for getting highest return on investment. For this

finance department has to take investment decision. These investment decisions can be

taken with the help of capital budgeting and investment analysis techniques.

MANAGEMENT OF TAXES

Management of taxes is also the function of finance or finance department.

Taxes may be direct or indirect. Finance department continue watches the amendments

and updates in tax laws and also create good corporate relation with government by

paying return of corporate tax on the time.

MANAGEMENT OF FINANCIAL RISKS

Finance department takes many measures for managing the financial risks of

company. For reducing loss of fund due to happening liquidity, solvency or financial

46



disaster, finance department makes a good plan and also takes the help of debt collectors,

insurance companies and other rating agencies for reducing financial risk.

MERGE OR ACQUISITION DECISIONS

For creating good brand in the market, financial department works with

marketing department and both takes the steps of merge and acquisition action. Main aim

of merge or acquisition is to reduce competition and spread on brand in the market.

Finance department provides the money for takeover any other firm for estimating its

long run return.

STAFF MEMBERS

1. RAMESH[MANAGER]

2. SELVI[CASHIER]

3. SHANMUGAM[AO]

4. ABDUL SAMAD[ACCOUNTANT]

5. SELVARAJ[ACCOUNT ASST]

6. DIVYA[ACCOUNT ASST]

7. VIJAYALAKSHMI[ACCOUNT ASST]

8. SATHYA SUNDARI[ACCOUNT ASST]

KANDHAN KNITSS

47



BALANCE SHEET

DECEMBER 31, 2009

ASSETS LIABILITIES

CURRENT ASSETS CURRENT LIABILITIES

Cash $ 2,100 Notes Payable $ 5,000

Petty Cash 100 Accounts Payable 35,900

Temporary Investments 10,000 Wages Payable 8,500

Accounts Receivable – net 40,500 Interest Payable 2,900

Inventory 31,000 Taxes Payable 6,100

Supplies 3,800 Warranty Liability 1,100

Prepaid Insurance 1,500 Unearned Revenues 1,500

Total Current Assets 89,000 Total Current Liabilities 61,000-

Investments 36,000 Long-term Liabilities

Notes Payable 20,000

Property, Plant & Equipment Bonds Payable 400,000

Land 5,500 Total Long-term Liabilities 420,000

Land Improvements 6,500

Buildings 180,000

Equipment 201,000 Total Liabilities 481,000

Less: Accum Depreciation (56,000)

Prop, Plant & Equip – net 337,000

-

INTANGIBLE ASSETS STOCKHOLDERS' EQUITY

Goodwill 105,000 Common Stock 110,000

Trade Names 200,000 Retained Earnings 229,000

Total Intangible Assets 305,000 Less: Treasury Stock (50,000)

Total Stockholders' Equity 289,000

Other Assets 3,000-

Total Assets $770,000Total Liab. & Stockholders'

Equity$770,000

CHAPTER-X

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10.1 SWOT ANALYSIS

STRENGTH OF KANDHAN KNITSS

1. Good infrastructural facilities

2. High-tech equipments

3. Man power at least cost

4. Foreign opportunities

5. Good name among foreign clients

6. Repetitive orders from the clients

7. Quality of goods

WEAKNESS OF KANDHAN KNITSS

1. Lack of high technology when compared to foreign countries

2. Lack in high productivity

3. Lack in abundant labour supply

4. Shortage of raw materials

5. Lacking to generate economies of scale

OPPORTUNITIES OF KANDHAN KNITSS

49



1. High demand of goods produced by Kandhan Knitss among European

Countries

2. Increased product varieties3. Available of abundant labour

4. More demand in the market nationally and internationally

5. High investment opportunities

THREATS TO KANDHAN KNITSS

1. High competition in the market

2. Geographical disadvantages

3. Continuous improvement in the quality

4. To make balance between price and quality

5. To make balance between supply and demand

CHAPTER-XI

50



CONCLUSION

The Indian Textile and apparel industry plays a dominated role in the national

economy and will continue to do so in near future. At present, the Indian apparel andtextile sector is struggling to survive because of increasing costs of raw material, poor off

take of yarns coupled with the poor realization from yarn dealers and a sharp rise in

interest rate and the worse, the rising value of the Indian rupee. The industry has to pay

greater attention to the issues in product improvement, labour welfare, branding and

adoption of new technology for boost up their export level. Every year the growth of

exports increasing and earnings of foreign exchange also increasing.

From this training program I got chance to know many factors in production,

merchandising and human resource departments in detail. And I like to include that the

products manufactured in KANDHAN KNITSS is of high quality and hygienic. The

company is able to overcome all the threats and can prepare themselves for facing the

problems in advance; it can achieve a good growth in the future.

Documents

Inplant Training in Kandhan Knitss