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SONA COLLEGE OF TECHNOLOGY
SALEM
NAME: NIVEDHA. M
DEPT: B.TECH / FASHION TECHNOLOGY
YEAR: FINAL YEAR
TITLE: THE STUDY OF MARKETING & MERCHANDISING
ACKNOWLEDGEMENT
I would like to acknowledge the following on the threshold of my achievement
of successful completion of the technical report during my Two Months training
at SHAHI EXPORT PRIVATE LIMITED. First and foremost I express my deep
gratitude to this renowned institute “SONA COLLEGE OF TECHNOLOGY,
SALEM” which provides me an opportunity and platform for fulfilling my
dreams and desires to reach my goals.
I sincerely express my gratitude to Ms.BanuPriyaVerma (HR), who permitted
me to carry out this training successfully in this company. I would also like to
express my sincere gratitude to Mrs. Sri Vidhya&Mrs.Nagashree (HR) for their
support and help at each stage of the program.
I am very much thankful to Mr.RavindranathTagore (Divisional Merchandising
Manager) and Ms.KayalVizhiK P(Executive Merchandiser) for their constant
motivation and proper guidance which helped me a lot in Completion of this
technical report.
I wish to express my sincere thanks to all the staff members
Regards,
NIVEDHA. M
COMPANY PROFILE:
NAME OF THE COMPANY – SHAHI EXPORT HOUSE
YEAR OF ESTABLISHMENT – 1974(DELHI),1988(BANGALORE)
SOLE PROPRIETER – Mr. HARISH AHUJA
SPECIALIZATION:
Woven - It covers men’s & boy’s shirts, Casuals men’s shirts,Formals, ladies &
girls dress.
Knits - The product range covers Polo T- shirts, crew neckT-shirts, Jackets,
sportswear, and sleep wear, etc.
SITUATED AT: Industrial Plot #1, Sector 28,
Faridabad – 121008, Haryana, India
WOVENS: Belandur Gate, SarjapurMainRoad,
Bangalore – 560034, Karnataka.
KNITS: No – 37 / 1B, ArekereVillage,
BannerghataMain Road, Bangalore –560076, Karnataka.
OVERVIEW OF THE COMPANY
SHAHI EXPORT PRIVATE LIMITED, one of the most renowned names in the
world of garment industry, speaks of its tremendous success and expansion over 50
times within 30 years of its establishment, being established in the year 1974, in
Delhi.
It is expended by 60 times 38 years with annual turnover of 1250 crore and around
42000 employees spread over 27 locations, it has manufacturing units in six
different states of India via,Delhi, Haryana, Uttar Pradesh,Tamil Nadu, Karnataka
and Andhra Pradesh which became largest manufacturer/exporter of ready–to–
wear garments.
Mrs. SARLA AHUJA Mr. HARISH AHUJA
(Founder) (Managing Director)
Mr Harish Ahuja, is the pioneer of Shahi Exports Private Limited,
Manufacturerand Exporter of ready –to–wear garments in India.
Imbibing with the best technologies of the day Shahi is an ISO 9000 certified
factory while the knits unit works in compliance with SA8000: 2001. Having an
open mind to cope with the business needs, it has implemented different
workshops for productivity improvement like 5S, Kaizen, Single Piece Flow & 6
Sigma Policy, 10 Commandments, GSD and has created its own place in this ever-
demanding market.
With its strict commitment to shipment date and production of supreme quality
goods it is having strategic alliance with leading processing houses in yarn as well
as fabric dyeing/finishing thereby getting consistency in quality, commitment in
delivery & the best price.
An organized work culture with dedicated, well experienced team of technicians to
handle various kinds of fabrics with short lead times has created a good working
environment that has added to the many benefits of the company.
The factory has a production capacity of 2.5 million pieces per month.
The manufacturing activities at Bangalore were started in the year 1989 and the
Knit Division started during 2001.
There are different strategic business units in Shahi exports which are as follows:
LDD – Ladies Dress Division MNB – Men’s and Boy’s division
DRS- Dress division HFD- Home Furnishing Division
LSD- Ladies Specialty Division LFD - Ladies Fashion Division
There are various units in Bangalore handling woven garments and knitted
garments
Unit No.12 belongs to Knit Division and Unit no.7 belongs to Women Division.
All the activities of Women Division in Bangalore, Corporate HR of women and
Organisation Development-Corporate HR of Knits at Bangalore and Tirupur are
coordinated from the main office Unit-7 at Belandur Gate, Sarjapur Main
Road,Bangalore-5600102.
SHAHI extended its operations in Bangalore by 1st July 1988 with 250 associates
and 104 machines whereas the functioning of Knit Division as a separate entity on
23rd august 2001.
VISION:
“Always no. 1 in the knitted garment business”
Our goals for the near future:
Creating a visual factory
100% shipment on time without over time
Reach PCMM LEVEL III
To be a trend setter in the Apparel Industry
To win Deming Award
QUALITY POLICY:
“We Strive to Delight Customers through Lean Manufacturing Systems with
Respect for Human Values”
QUALITY OBJECTIVES:
Aim: To attain high score on customer delight index by understanding customer’s
value expectations and striving to achieve the same.
To achieve zero claims and reduction in customer complaints by 95%.
To achieve on time delivery and reducing internal failures by 2%.
To work towards continual improvement of processes and reduction
in throughput time by 10% and waste reduction by 15%
To become preferred employer by scoring high on Associate
DelightIndex.
CORPORATE VALUES:
Incorporate high quality into all products
Integrity & Team Work
Customer Driven
Continual improvement & learning
SHAHI emphasizes on some guiding principles, which are indicative of the values
it believes in and would like to continue in the organisation, these are the building
blocks for the organisation cultures:
The company believes in
(1) High level of Honesty and Sense of Responsibility.
(2) Two way communication channel for all purposes.
(3) In sharing the fruit of growth and prosperity with its partners (employees)
(4) The company firmly believes that team spirit is the Hallmark of Success
The Quality Objectives of the company
(1) To achieve 100% delivery on time.
(2) To reduce cost of manufacturing by 10%.
(3) To reduce material wastage less than 0.5%.
(4) To score high on associative delight index
Shahi Awards
(1) President of India Award
(2) Awards form Apparel export Promotion council (New Delhi)
(3) Supplier of the year award from Walmart
(4) Canara Bank award
(5) Industrial Architectural Building Award
(6) Women Entrepreneur Award
(7) Health & Safety Award from Government of Haryana
(8) Award for the Best Creche in the Garment Industry
ABOUT KNITS DIVISION:
MD : Mr. Harish Ahuja
CEO: Mr.Ramalingam (units-12)
The biggest plant of Knit Division is Unit-12 and the activities of all Knit Division
are monitored from Unit no.12 and the functioning of Knit Division differently
started on 23rd August 2001, ShahiExports Knit Division consists of Unit 11, 12,
14, 20, 22, 26 and 30. All knits division is having capacity of manufacturing
3million pcs/month.
Unit-12 is having a manufacturing capacity of 16 lakh pieces per month and
employed 5,600 associates. This unit is having 127 production lines, all are the
“cut to pack” with 2,600 sewing machines whereas almost 70,500 cuts per day
have been executed using 127 cutting tables. The embroidery section amount to 7
million stitches per shift.
Around 12,000 tons of fabric is being sourced per month for manufacturing the
pieces.
These are total approximately buyers,40 are the regular buyers every season in
which 60 % are USA buyers and 40 % are UK buyers, Shahi is fetching the major
business from below buyers, among that 30 % of Shahi knits business is from
Tommy and Kohl’s
Apart from this, Unit “Shivamoga” which has been located 250kms from Unit 12
has started its production activities recently. Salient feature of this unit is up to 5
million pcs/month can be executed.
CUSTOMER BASE:
Shahi Exports Pvt Ltd, has customers who are the leading shopping chains, with
head officers at Europe and USA, where as their retails outlets are spread over the
world .The uniqueness with versatility and competitive prices are the demanding
factors.
Depending on the needs of the customer, the market is segmented as Premium
Wear, Fashion Business and Mass Retailing.Approximately 10 to 15 % is targeted
for Premium Wears, 40 to 50 % for Fashion Business and remaining for Mass
Retailing each manager in marketing department is allotted a combination of these
segments which are supported by their merchandisers.
Success of a business depends entirely on the understanding the buyer’s needs &
satisfying the same fully. Infrastructure, plant & machinery, expertise of highly
skilled & qualified professionals & commitment to quality have earned it a high
degree of trust to its valuable buyers.
USA Europe
Tommy Hilfiger Tommy Hilfiger
Kohl’s Armani Jeans
Walmart Kaufhof
Hollister Colmar
Abercrombie & Fitch Daks
Gap Emporio Armani
Reebok Enzo Lorenzo
Marks & Spencer H & M
Eddie Bauer Espirit
Ann Taylor United Colors Of Benetton
DEPARTMENT LINKS:
OUT SOURCING - GARMENT
FORM
FINISHING & FGW
QA / QC
BATCH PRODUCTION
OUT SOURCING -
PANEL FORM
MERCHANDISING
SOURCING
CUTTING
CU
ST
OM
ER
PP&C ( includes R&D and
IED)
INVENTORY
Given by PP&C
Plan & Bulletin to respective departments
PP&C Bulletin
Customer Standards, BOM
PO
Garments
BOM
PP&C Bulletin
Capacity, Customer requiremants
Customer Specif ications
Customer Standards
PP&C Bulletin
Men, Movex, mails
Men, Movex, mails
Men, Movex, mails, Equipmens
cut panels
Given by PP&C
Men, Movex, mails, machines,
Equipmens
Men, Movex, mails, machines,
Equipmens
Men, Movex, mails,Equipmen
Product
Men, Movex, mails, Equipmens
Product
MAILING POLICIES:
Legal Requirements:
Forwarding Mails containing libelous, offensive,defamatory or
obscene remarks is strictly prohibited.
Unsolicited mails needs to be avoided.
Disclaimer Policy.
Forging or attempting to forge is not allowed.
Do not use another person’s name while sending mailwithout his/her
prior permission.
Security Policy:
Personal belongings
Personal Vehicle
5S PRINCIPLES:
Improvement approaches demands on just-in-time production, total productive
maintenance, total quality management to maintain the high performance,
output their customers demand. These steps begin with the 5S System for work
place organization & standardization.
The 5S System consists of 5 activities with names that begin with ‘S’:
Sort involves sorting through the contents of the area & removing unnecessary
items.
Set in Order involves arranging necessary items for easy & efficient access &
keeping them that way.
Shine involves cleaning everything, keeping it clean, & using cleaning as a way
to ensure that your area & equipment is maintained as it should be.
Standardize involves creating guidelines for keeping the area organized,
orderly, & clean, & making the standards visual & obvious.
Sustain involves education & communication to ensure that everyone is aware
& follows the 5S standards.
5S SYSTEM:
5S SYSTEM
Equipment Maintainence
Safety
WorkEfficiency
Production
Quality
Inventory
Level
Quality
SIX SIGMA:
Six sigma is a business management strategy, originally developed by Motorola
that today enjoys wide – spread application in many sectors of industry.
Six sigma seeks to identify and remove the causes of defects and errors in
manufacturing and / or service delivery and business processes. It uses a set of
management methods, including statistical methods, and creates a dedicated
infrastructure of people within the organization who are experts in these
methods. Six sigma aims to deliver “Breakthrough Performance Improvement”
from current levels in business and customer relevant operational and
performance measures.
Business or operational measures are elements like:
Customer satisfaction Rating Score
Time taken to respond to customer queries or complaints
% Defect rate in manufacturing
Cost of executing a business process transaction
Yield ( Productivity) of service operations or production
Inventory turns (or) days of inventory carried
Billing and cash collection lead time
Equipment efficiency ( Downtime, time taken to fix etc.,)
Time taken to recruit personnel and so on..
Six sigma initiatives are planned and implemented in organizations on “ Project
by Project”basis. Each project aims not only to improve a chosen performance
metric but also the improvement achieved.
Each six sigma project carried out within an organization follows a defined
sequence of steps and has quantified financial targets ( revenue increase, cost
reduction or profit increase).
HISTORICAL BACKGROUND:
Six sigma was originally developed as a set of practices designed to
improve manufacturing processes and eliminate defects, but its application was
subsequently extended too many other types of business processes as well. In
six sigma, a defect is defined as anything that could lead to customer
dissatisfaction and / or does not meet business set specifications.
The elements of the methodology were first formulated by Bill Smith at
Motorola in 1986. Six sigma was heavily inspired by six preceding decades of
quality improvement methodologies such as quality control, TQM, and Zero
defects, based on the work of pioneers such as Shewhart, Deming, Juran,
Ishikawa, Taguchi and others
Like its predecessors, six sigma asserts that:
Continuous efforts to achieve stable and predictable process results. ( i..,
reduce process variation) are of vital importance to business success.
Manufacturing and business processes have characteristics that can be
measured, analyzed, improved and controlled.
Achieving sustained performance and quality improvement requires
commitment from the entire organization, particularly from top – level
management.
HOW IS SIX SIGMA DIFFERENT FROM OTHER QUALITY
SYSTEM :
Features that differentiate six sigma apart from previous quality improvement
initiatives include-
A clear focus on achieving measureable and quantifiable financial returns
from any six sigma project.
An increased emphasis on strong and passionate management leadership.
A special organization infrastructure of “Champions, Master black belts,
Black belts, Green belts” etc., to lead and implement the six sigma
approach.
A clear commitment to making decisions on the basis of verifiable data,
rather than assumptions and guesswork.
The term “Six Sigma” is derived from a field of statistics known as
process capability study, it refers to the ability of processes to produce a
very high proportion of output within specification. Processes that operate
with “Six sigma quality” over the short term are assumed to produce
(long term) defect levels below 3.4 defects per million opportunities
(DPMO). Six sigma’s implicit goal is to improve all processes to that
level of quality or better.
In recent years, Six sigma has sometimes been combined with lean
manufacturing management to yield methodology named Lean Six Sigma
WHAT IS LEAN?
Lean is a philosophy and set of management techniques focused on continuous
“ Eliminating waste “ so that every process, task or work action is made “ Value
adding” (The real output customer pays for) as viewedfrom customer
perspective. Lean “Waste elimination” targets the “Eight Wastes” namely:
i. Over production : Making more than what is needed by customer /
market demand.
ii. Over – processing : Doing more to a product / service ( But not
perceived as value by customer)
iii. Waiting : For material , information, people, equipment, procedures,
approvals and more.
iv. Transportation : Movement of products during or after production.
v. Defects : Errors, mistakes, non – complying products, services,
documents, transactions.
vi. Rework and Scrap : Products, transactions or outputs not meeting
specifications and have to be fixed, redone, rectified, marked down or
scrapped / unusable.
vii. Motion : Mainly people, document movement , searching etc.,
viii. Inventory : Buffer stocks or resources ( Raw, work in process, Finishing
Goods etc)
ix. Unused creativity : People knowledge and skills that are not utilized by
the company.
These all wastes make the organization slow, inefficient and uncompetitive.
Lean methods help to remove/ reduce waste and contributes to driving “
Business agility “ through smooth work flow across the organizations resulting
in rapid fulfillment of customer needs in an optimum manner.
AIM OF SIX SIGMA:
Six sigma’s prime motive is to make the company excel in the
products and services. The concept lies on the foundation of customer
satisfaction. It quantifies the qualitative aspects of the system. It aims towards
the best qualities as far as products and services are concerned. Now, here an
important thing comes and that is not every process in an industry or a company
is measurable.
SIX SIGMA BENEFITS:
Leading companies have implemented Six sigma and realized gainful
results. Motorola has reported over US $ 17 Billion in savings from Six
sigma as of 2006.
Other early adopters of Six sigma who achieved will – publicized success
include Honeywell International and General Electric.
By the late 1990’s, ABIYT TWI – thirds of the fortune 500 organizations
had begun Six sigma initiatives with the aim of reducing costs and
improving quality.
INTRODUCTION FOR MARKETING:
Apparel marketing is the management process, responsible for identifying and
satisfying the needs of the customer, profitably. It involves identifying the needs,
requirements of the customers and delighting them effectively with the right
marketing mix.
Marketing is defined as “an organizational function and a set of processes for
creating, communicating and delivering value to customers and for managing
customer relationship in ways that benefit the organization and its
stakeholders”
Market concerned with the investigation and measurement market demand. By the
market study we can study the present and future customers. It includes the study
of following
Size of market
Customer’s needs and motive
Degree of competition
Selling activities
Details of the customers as to their income and
Dealer’s preference
Ultimate idea behind market study is
1. To find the habit of customers, who make up the market?
2. To find the suitability of products and their acceptance in the market.
3. To find the reactions of the customer on the product.
4. To find the channel to be adopted for distribution.
Market is the place where the products are exchanged for money.
Good quality produce at accepted price get the place in the market good quality
product which catch the wide market area.
Increase in the demand of the product; increase the sales of the product.
Competition also affects the sales of the product.
In order to capture the market we have to produce the product in such a manner
it should satisfy the customer needs.
It is necessary to make the product get attracted by the customer through
advertisement at right time.
Scope and Functions of Apparel Industry:
Responsibilities of marketing division:
Customer relationship
Customer life time value
Customer share
Target of marketing
Customer database
Integrated marketing communication
Every employee is a marketer
Model – based decision making
Find out what
customer
need
Achieve
company
goals
Engage the
whole company
in efforts to
satisfy
customers
Develop
products to
meet those
needs
INTRODUCTION FOR MERCHANDISING:
Merchandising denotes all the planned activities to execute and dispatch the
merchandise on time, taking into consideration of the Right Quantity, Right
Quality, Right Cost and Right Time to replenish the customer.
Apparel firms, whether large or small, must perform four basic functions in order
to be in business:
Marketing
Merchandising
Production
Operations / Finance
In a well-run apparel firm, the target market is the central focus of decision
making. Firms seek to produce lines of apparel that their target customers will buy
each season and each year.
Merchandising:
Merchandising refers to the planning, development and presentation of product
line for identified target markets with regard to prices, assortments, styling and
timing. Merchandising divisions are central coordinating points for “line
development, design, execution and delivery of product lines”.
Apparel merchandising is the process of the development, execution and delivery
of an apparel production line based upon the customers need. It refers to the total
process of stock planning, management and control.
Merchandiser or the merchant is the communicator between vendor and buyer.
Role of merchandiser:
Keep monitoring the market environment
Be able to analyse the target market
Should be able to do product development
Should be able to do costing
Should be able to source manufacturers
Should be able to manage inventory
Should be able to interface with production and sales departments.
Role of
merchandiser
Product &
market
knowledge
Product
development &
costing
Production
authorization,
execution & control
Interface with sales
Sourcing
Interface with
manufacturer &
quality monitoring
Resource planning &
materials
management
Planning &
control
Principle of Merchandising:
The Principle of merchandising includes two categories such as:
Estimating demand
Product development
Estimating demand:
It includes the study of target market through surveys. Information about age, sex,
life style, occupation, disposable income, personal choice, etc. is collected.
Product development:
It involves the process of Idea formulation, Screening, Business analysis,
Development of a prototype, Test Marketing and finally Commercialization.
Qualities of a buyer:
Independent Thinking
Creativity
Sensitiveness
Confident
Flexibility
Leader & Team Builder
Good Communicator
Dedicated Worker
Disciplined Worker
Types of Merchandising:
Fashion Merchandising
Buyer Merchandising
Vendor / Wholesale Merchandising
Retail Merchandising
Visual Merchandising
Buyer Merchandising:
It involves the process of co-ordinating with buyers and interface with the design
and production departments. Activities range from product development, getting
approval, sourcing of material and order execution of a confirmed order.
Functions of Buyer Merchandising:
Communicate with Buyer regarding orders
Develop Samples / Counter samples as per requirement
Quote – cost / price
Get sample approvals – regarding fabrics/fittings/shade/trim/,etc
Prepare schedule for order execution
Source Fabric/ Trim/ Accessories etc
Production Interface
Perform Lab tests and Quality checks
Documentation
Dispatch and delivery
Merchandising Functions:
Buying:
Determining needs
Finding a seller or seeking out source of supply
Negotiation price and other terms
Transfer of title
Payment or arranging for credit
Buying is an important function and occupies much of the time. The ultimate
purpose of buying is to bring commodities together where they are wanted for
immediate use in production or in personal consumption.
Assembling:
Putting together of goods to secure larger lots of shipment, which is used for sale
or for manufactures.
Grading:
Grading is assorting of goods into lots which is approximately in variety, size and
quality. Grading based on size, color and appearances.
Branding:
Branding is a process of identifying name of the producer with a product. This is
usually done by the product or it contains the trade name or brand represented
words or designs.
Advertisement:
Helps consumer in finding quality products.
Sorting or Warehousing:
Creation of time utility (proper place so as the product does not get dusted).
Packing and Packaging:
Packing: Wrapping and creating necessary for the transport or storage of goods.
Packaging: packing the product in small package.
ORGANISATIONAL STRUCTURE:
SHAHI EXPORTS
TOMMY HILFIGER USA
CHIEF EXECUTIVE OFFICER
VICE PRESIDENT
DIVISION MERCHANISING MANAGER
SENIOR EXECUTIVE
EXECUTIVE
TOMMY HILIFIGER – USA
VP – RITHESH KUMAR DMM – RAVINDRANATH TAGORE
Merchandising
Sampling Bulk
SAMPLING:
Development:Initially the buyer gives the tech pack, and need to develop the
same sample with their requirement and their needs.
R&D : When the requirement is given, first it should be checked for the feasibility
to run the production.
At first, the proto sample must be developed on that particular style. It should be
developed with the costing for that particular sample.
Once the costing is approved for the developed sample, the merchant receives the
receipt of order for the particular sample.
Then the FIT Sample should be developed to send to the buyer. The size of the fit
sample is MEDIUM (M).
When the fit sample satisfies the buyer, PP (Pre-Production) Sample should be
made with actual fabric, trims, style, etc. the size is of MEDIUM(M). Three
samples should be sent.
Then the file release for the Bulk takes place.
BULK:
Once turning to the bulk production, the Size Set sample should be sent to the
buyer from XS to XXL each with two pieces.
Bulk cutting is done on the PCD (Planned Cutting Date).PCD is made after 15
days from the date of file release.
Then the Bulk Production starts.
TOP (Top of Production) sample is sent to the buyer, it is the resemblance of the
bulk production.
When the bulk lot runs, GPT (Garment Package Testing) is done.
Types of Samples Sent To The Buyer:
Proto Sample:
To know the feasibility of the style and to have a look on that particular
style.Should be made with Medium (M) size.
Requirement: Actual fabric in actual color and the trims optional that is Buttons,
Labels, zippers that are available.
Fit Sample:
To know the fit of the garment in dress form or in model.Should be made with
Medium (M) size.
Requirement: actual quality of the fabric with the correct GSM. The color of the
fabric and the trims can be used of available.
PP Sample:
To know the final look of the sample and to ensure the correct fabric and trims
were used.Should be made with Medium (M) size.
Requirement: Actual fabric, Actual GSM, Actual color, Actual trims. It excludes
the packing materials.
Size-Set Samples:
To know the fit of the samples in each size. Two pieces of each size should be sent
to the buyer for approving.
Requirement: Actual fabric, Actual GSM, Actual color, Actual trims. It excludes
the packing materials.
TOP Sample:
It is made to know the output of the bulk. TOP means the first sample coming out
the bulk production.
Requirement: Actual fabric, Actual GSM, Actual color, Actual trims, Actual
packing materials.
MERCHANDISER ROLE WITH SOURCING:
Fabric requirement:
Lab dip: To develop this lab dip, color standard should be given to the sourcing
team, they make a fabric swatch of different color ratios.Initially they make
around four different ratios. These color ratios were sent to the buying house for
getting approval on the particular shade. Once the shade gets approved over
particular ratio, bulk roll should be made on that same shade and it should be
checked with the merchant for the approval. When it get approved by the
merchant, the bulk fabric is In-housed for the production.
MERCHANDISER ROLE WITH THE PRODUCTION:
With all approvals the file should be released for the production department. The
file contains the following details:
OCM Chart (Order Clarity Meeting Chart)
Buyer PO sheet
Style analysis report
Tech pack
PP comments
Trim card sheet
Consumption chart or Marker sheet.
1. OCM chart is the Order Clarity Meeting chart, which has the size break down
of the particular style with different combos.
2. PO is the Purchase Order sheet, it is given by the buyer to the merchant. It
includes all the information about the order quantity like Style Number, Style
Code, PO Number, Combo Name, Delivery Date. It also has the details whether
the quantity is lose pack or Ratio Pack.
3. Style/Risk Analysis Report:
Development sample review – callouts and suggestions given to buyer.
Rejection cause is advised to the Merchandiser.
4. Tech Pack:The sheet describes the garment style, what are fabrics used over
different components, the trims and their colors that is required, etc. for different
combos the tech pack will be same.
5. PP Comments: As per the PP sample the buyer gives suggestion to start the
Bulk Production, it’s get updated by after reviewing the sample
6. Trim card sheet:The sheet contains the samples of all trims such as Main
Label, Size Label, Time Label, Washcare Label, Security Tag or Miscellaneous,
Buttons, Tapes, etc. and the swatches of the fabric that isused.
7. Consumption chart:This chart contains the total consumption of fabrics and
the trims that used. It also consists of the marker consumption sheet to check the
efficiency.
SA REQUEST:
SA- Shipment Authorization Number is requested to Buyer for Shipment of goods.
The request should be given 15 days prior to the delivery date. The authorization
number differs over country to country. Generally Tommy Hilfiger deals with
USA (OUT), Canada (CAN). The PVH company division changes for country by,
for USA (RT - TO), CAN (RT - TC), REC (RT - TX).
The SA Request sheet contains,
Production factory code
Factory Name
PO Number
Style Number
Style Name
Color Code
Color Name
PO Quantity
Ship Quantity
FOB
Ship Mode
Quantity(First/Second)
At Consolidate of date
X – Factory Date
PVH Company Division
In shipment mode it differs by Sea or Air Collect or Air PP. Air Pre-Paid (PP) is
the process where the Vendor pays the amount for the goods transaction. SA
received helps to plan the Vessel for Shipment.
After this request shipment booking chart has to be made. It is used to book the
vessel(Ship) for transporting goods. The SA Number plays a major role here. It
contains other details such as Po number, Style Name its number, Color Code its
Number, FOB, Delivery Date, etc.
SOFTWARE DETAILS:
Normally SHAHI deals with two software’s namely CRM and M3. M3 is Make,
Move, and Maintain. CRM is used for making indent to the sample.
Once the request comes from the buyer, we do the sample according to that. For
this we need to give request to the sampling team by request form through On-line.
For the sample we can make around 7 samples according to the requirement.
While making the indent we get a Sample Request Number, then the requirement
should be finished with different aspects in the request form.
After this request a hard copy is given to the sampling team with the swatches of
fabric that we need to used and the trims that require for making sample.
COSTING:
Costing starts over with the initial cutting process. A certain percentage is
allocated for all the processes like Yarn Cost, Knitting, Compacting, Dyeing, etc.
In making production it starts by planning, cutting, sewing, finishing, packing, etc.
In costing it includes all the cost of labour, cost of material and cost of
expenditure. These are the Direct Cost that is paid by the organisation.
Overheads are the expenditure done by the organisation which is the Indirect Cost
of labour, material.
The Profit margin is kept maximum to the minimal quantity and minimum to the
maximal quantity.
CMT plays a vital role in Costing that is Cut, Make, Trim cost.
Working minutes = No. of Working hour per day X 60
Target = (No. of Operators X Total Working minutes per day X Efficiency) / SAM
Calculated work place = Target X SAM
Working minutes X Efficiency %
100 % Target = 60 Minutes / SAM
Target @ some% = 100 % Target X Target %
Estimated no. of days = Order Quantity / Target
Cost = (No. of days X No. of operators X Cumulative labour charge per day)
Order Quantity
OTHER DEPARTMENTS OF SHAHI:
HUMAN RESOURCE MANAGEMENT:
Human resource management (HRM or simply HR) is the management process of
an organization's workforce, or human resources. It is responsible for
the attraction, selection, training,assessment, and rewarding of employees, while
also overseeing organizational leadership and culture and ensuring compliance
with employment and labour laws.
Human resources management involves several processes together, they are
supposed to achieve the above mentioned goal. These processes are usually
performed in the HR department but some tasks can also be outsourced or
performed by line managers or other department when efficiency integrated they
provide significant economic benefit to the company.
Workforce planning
Recruitment
Skills management
Training and development
Personal administrative
Compensation in wage or salary
Time management
Employee engagement activities
Personal cost planning
CENTRAL IED DEPARTMENT
The IED department has to work with many other departments as this department
gives the entire idea of the garment construction and the thread and trims
consumption criteria,operations skill level categorization and other related aspects.
Hence they play a vital role in determining the cost of producing a single piece of
the garment and they also calculated the cost of that particular style of garment.
Central IED:
This department is a supporting department it mainly works with marketing and
production, it also supports other department like TPM, R&D and Sampling etc.
The merchant upon receiving a tech pack a visual or a sample garment from the
buyer who will forward that of the department & the department will soon prepare
an operation bulletin as per the details given in the tech pack.
Then again as per the order quantity,run time of each garment is decided and
cost/minute of each garment is decided. It is calculated by Total Cost/Total
Minute. Similarly cost per minute of cutting and finishing is also set. Apart from
this costing for Embroidery, Printing and Washing is obtained from the respective
departments and then added to the cost sheet. Then these Cost details were
forwardedto the merchant, who will quote the price to the buyer. All these
activities are done before order confirmation.
Once the merchant gets the confirmation, the merchant will again send back the
samples for cross checking the operation bulletin with the garments & if any
changes are to be made, then it’s done in the OB.
Again for the third time, during the running of size set, the sample will come to the
R&D department, this time the operation bulletin will be converted into layout
type according to the line layout( all the details for example what machines should
be there) this OB is given to the concerned IE department.
Washing:
From Biting the cut components enter into the washing department. The recipe
sheet gives all details about the process of washing that is like Time, Temperature,
Chemical that is used, etc. After the washing process, hydronizing is done to wring
the water, then the components were sent to the dryer for drying. When the
process is completed, they dispatch the fabric in the shelf which is arranged
according to the floor wise.
Embroidery Section:
Machine Name: Baruden
WILCOM is Software that is used in this Embroidery Section. It consists around
18 heads which make up to 9 colors. They mainly use twill fabric for making
applique. The applique is stitched over the edge to attach it over the fabric. Mainly
the costing of the embroidery is based on the stitches.
Sequins Department:
For a certain style garment, sequins work is to be done as a decorative factor. It
can be done either by manual or machine sequins. For manual sequins they allow
only the experienced person to do that. From the sampling team the garment
comes to the sequins department. They use the needle named RE, which is bent at
the tip to take the thread and make the sequins over the garment. By doing this
work, they make a time study and fixes a target for a particular worker. A water
soluble substance is used to make a design in the garment and the worker arranges
the sequins according to that.
Printing Department:
Printing has two types, Manual and Automatic. Printing is done by 100% screen
technology. When a style is given to the printing team, they first develop a screen
which is known as Screen Making. After this the Screen Exposing is done, it is of
PhotoEmbellishment Coating. Then the process goes on with Screen Dyeing. The
next one is Color Making. Now it is ready to print on the sample and it is sent to
the respective Merchandiser.
While exposing, different screens were used to make different colours. The films
were used to make the design. To expose the design Photo Coating is done. The
screen is generally made by Polyester Mesh or Nylon Mesh. Generally one screen
costs around Rs. 100. The Rib fabric is very difficult to print.
Production Department:
Here they use the Bundle System for carrying the components. According to the
combo ratio, the bundles were issued. There is a sequence of operation done in
making a Polo T-shirt of Tommy Hilfiger Brand.
Piping attached over the collar
Rib attach
Label placement(heat transfer placement is used for placing the label)
Sleeve rib attach
V – Patch attach(Tri Label)
Trimming over Balance
Placket attachment by Laser Method
Placket Finishing
Finishing Box over the front Placket
Attaching shoulder with the mobilean tape at the back side
Top stitch over the shoulder
Sleeve attach (attaching by balancing the stripes)
Top stitch for sleeve
Collar finishing
Bottom hem
Inspecting
Side seam
Slit preparation & finishing
Label attaching over the side seam like Time Label, Size Label, Security tag.
Button Hole making
Button attaching
Checking
Ironing
Price Tag attaching
Packing
FINISHING:
When all the process was completed in the production the garments were sent to
the finishing department for checking. Here the inspection takes place and the
quality audit is done with the garments.
In the batch process, they check the fabric Quality by the formula,
FPY = (Passed X 100) / Inspected
FPY – First Passed Quality.
TESTING DETAILS:
Generally Two tests were done to both the fabric and the garment. It is of,
SEPL Test (Internal)
SGS Test
SEPL Test:
It is a internal test done by the Shahi Exports Private Limited. It checks various
properties over the fabric or garment given. Applicable in all Yarn Dyed and
Printed ones.
Test properties:
Color fastness to Washing
Color fastness to Perspiration
Color fastness to Washing
Color fastness to Crocking
Color fastness to Non – Chlorine Bleach
Dimensional stability to Washing
Appearance after Washing
Spirality
Fabric Weight
The points given to the color change and staining:
5. Negligible
4. Slight
3. Noticeable
2. Considerable
1. Severe
SGS Tests:
It mainly checks the property of Color fastness to Light. Then the Fibre Content of
the Fabric is checked, mainly the ratio percentage mixed over the fibre. Then the
property of Pilling is checked.
PDS:
PDS is a Product Structure, were it is mainly used for the purpose of Cost Sheet
Locking.
The Unit Allocation of Costing depends on,
Bitting
Drying
Cutting
Sewing
Finishing
CONCLUSION:
Marketing/Merchandising it includes directing and overseeing the development of
product line from start to finish.“Shahi Exports Pvt. Ltd”, developed itself as a
leading manufacturer of ready to wear garments in India. Finally, Shahi is growing
at good rate and finds out the attracting fashions and designs over the market, by
that the customers are satisfied with “Shahi Exports Pvt. Ltd”, and have a positive
attitude towards the organization.
Shahi Exports Pvt. Ltd, developed itself as a leading manufacturer of
ready to wear garments in India.
Company’s strength lies in good product design team, well trained
employees, and quality concern and price leadership.
Finally, Shahi is growing at good rate and compete with attractive designs
to satisfy the customers and have a positive attitude towards the
organization.
