An overview of the value addition process in Jinnat complex

Submitted to

Joydeb Dutta General Manager (Cost, Budget & Material Movement)

Submitted By Hassanur Rahman Exe utive (Cost, Budget & Material Movement)

Exe utive summaries !his is my "irst assignment in #B$ grou%& !o om%lete the assignment ' have to dis uss (ith managers, exe utives, su%ervisors, o%erators, hel%ers, all level o" em%loyee to get the insight about the o%eration o" )innat om%lex& ' have tried to summaries all in"ormation and only general idea has been %resented in this assignment& 'n this assignment ' brie"ly dis uss about the %rimary value addition %ro ess in )innat om%lex &' also in or%orate a short observation about the lean manu"a turing tools %ra ti ing in )innat and an estimated inventory ratio manage by the om%any&

*ur garment se tor earns more than +, %er ent o" the nation-s aggregate ex%orts (orth . /0 billion annually and it o u%ies some 1&, %er ent o" the global RMG trade o" . 02/ billion& Business %ro ess in garments se tor involve 2& *rder in3uiry "rom buyer to "a tory& /& 4%%roval o" order "rom buyer, as %er the osting given by the manager& 5& Buyer Ban6 give master $7 to the "a tory& Commer ial de%t deals (ith the "ollo( u% o" $7 matter& 0& Ba 6 to ba 6 $7C is given to the su%%lier o" a essories and otton et , 1& Sam%le sent to the buyers "or a%%roval 8& yarns and a essories to be in housed on s hedule 9& Bul6 %rodu tion to be started a ording to %lan& +& Commer ial de%artment %re%are shi%%ing do ument :& ;inal ins%e tion by mer handiser as %er time and a tion %lan& 2,& ;inished good delivered "rom "a tory 22& Good handed over the shi%%ing line 2/& Goods (ill rea h to buyer<s %ort&

*ne o" the most im%ortant "a tors in this %ro ess is lead time &$ead time is de"ined as the time it ta6es "rom (hen buyers demand is %la ed to (hen the %rodu t is delivered to the buyer& 't may be subdivided into design time, %rodu tion time, and trans%ortation time& !hese onsist o" value=added garment ta6es %la e that adds something o" value to the %rodu t& >on=value added time is a %eriod o" (aiting bet(een value=added %ro esses&

Suppl iers

S%inning FIBER YARN

?nitting

Grey Fabric

#ying

Finish Fabri

Cut & Se( Final product

!rans%ort

Buyer s F.O.B

@alue hain ma% Yarn procurement Aarn is made "rom either natural or man made "ibers and is used in 6nitting to %rodu e loths& Bri e o" yarn de%ends on thi 6ness& Bri e "or yarn in rease as thi 6ness de rease& !he thi 6ness o" the yarn is measured as ount& '" ount is Cero, then it is otton "iber& Dhen the yarn ounts in rease, the thi 6ness be omes lesser& !hus, Higher the ount, higher the %ri e& Aarn is %rodu ed in s%inning mill &#B$ have its o(n Matin S%inning mill "or yarn su%%ly& Ho(ever, 't also, im%ort yarn "rom other ountries& Based on s%inning %ro ess yarn are ategoriCed as Carded yarn and ombed yarn & Enli6e arded yarn ombed yarn need ombing %ro ess& Ho(ever, Combed yarn has higher ount than arded yarn and demand higher %ri e& ?nitting yarn are also ategoriCed by their (eight, %ur%ose, %ly, sour e "iber(s), texture, olor, and %attern & 4t "irst, Mer handiser de ide the "eature and 3uantity o" the yarn and order as re3uired &'n order to %rodu e ;abri , 6nit ()4$ , M?$ , );$=,2 and );$=,/) buy Aarn and Store ta6e delivery o" yarn a"ter re eiving B&' "rom 6nit & #Bl maintain six store "or holding

yarn& Ea h store has a%a ity to hold around 21, ton yarn & !urn over %eriod "or yarn in #B$ is 2&2+ day (estimated)&

Knitting
?nitting is a te hni3ue "or %rodu ing a t(o=dimensional "abri made "rom a one= dimensional yarn & 4 6nitted %ie e an stret h in all dire tions& ;or mass %rodu tion 6nitting is done by ma hine& 4ll 6nit ma hine an be divided into (e"t 6nit ting and (ar% 6nitting& 'n (e"t 6nitting the yarn runs horiContally a ross the stru ture, (hereas in (ar% 6nitting it goes verti ally through the 6nitted stru tures & De"t 6nitting ma hines an be subdivided into "lat 6nitting and ir ular 6nitting ma hines, de%ending on the "orm and "ormation o" the needle beds& 'n Finnat om%lex there are "our 6nitting unit namely )4$ , M?$ , );$=,2 and );$=,/ & );$ ,2 and ,/ onsist o" total 1/ ma hines (hi h %rodu e on average 20&1 ton grey ;abri %er day& )4$ has 50 ma hine and M?$ has /8 ma hine &)4$ along (ith M?$ %rodu e on average 28 ton grey "abri %er day & ;or 6nitting %ro ess lost is less than &,1G &Ea h ma hine has di""erent a%a ity based on their ty%e& !he range o" %rodu tion "or ea h ma hine is 5,, 6g to 8,, 6g grey "abri %er day &!he most ommon "ibers used "or 6nitted "abri s are otton & vis ose (ith or (ithout elastane, these tend to be single Fersey onstru tion and are used "or most t=shirt style to%& #i""erent ty%es o" 6nit ;abri are 2& Blain, single, Fersey 6nitH a %lain, "lat sur"a ed 6nitted "abri (ith a distin t "a e and ba 6& Smooth sides are alled "a e& 't %rodu ed "rom (e"t 6nit %ro ess "or !=shirt, under(ear, S%orts (ear et & /& 'nterlo 6 ;abri I 't is double "a e 6nitted "abri , (hi h "a e and ba 6 side loo6 same and smooth& 't is less elasti ity "abri %rodu ed %olo shirt, !=shirt, et & 5& Rib ;abri H 't is also double "a ed "abri but has more elasti ity in "abri (idth& 0& Aarn dyed ;abri I at "irst dying the yarn then %rodu e the "abri by olor yarn &

!here are many other ty%es o" "abri %rodu ed by #B$ based on buyer s%e i"i ation& ?nitting "abri s%e i"i ation de%end on 2& ;iber om%osition& /& Carded and ombed 5& GSM 0& Aarn ount 1& Color Grey ;abri !urnover %eriod is /&,5 days&(estimated ) and ;inish "abri turnover %eriod is 2,&1 days (estimated ) &

Cutting
Cutting is the very "irst %ro ess in garment manu"a turing& !he utting #e%artment re eives the "abri "rom the "abri store a"ter ins%e tion& !he utting "loor is a ombined unit "or s%reading, utting, 3uality ontrol and bundling& !he (or6 o" utting de%artment starts right "rom the %oint o" "inish "abri being re eived "rom the store& 'n #B$ there are "our utting unit available &)4$ and ;;$ has three external utting unit and );$ as (ell as M?$ and )?$ has single entral utting unit&& ;or a %arti ular order the amount o" "abri , (hi h is re3uired "or the order, is determined by the mer handiser& Be"ore utting room ;abri omes to stores dire tly "rom Mymun !extile and stored a ording to buyer<s name& Cut de%artment sends the re3uired "abri (ith other data to the store in harge& Re3uired "abri is then allo ated to utting room "rom the stores& Ea h utting unit in )innat %rodu e on average "i"ty seven thousands %ie e out%ut %er day&

Working procedure in cutting department 'ssue o" "abri S%reading o" lay

Mar6er laying Cutting o" a6es Sorting & sti 6ering Bundling 'ssue to in%ut se tion 'ns%e tion Send "or %rinting (i" re3uired)

Sewing and finishingH

Se(ing de%artment "ollo( s ienti"i management system by dividing Bro ess o" ma6ing loths into smaller %ie e o" tas6 and arranging assembling line in (hi h %ie es se( to a ;abri in a se3uential manner to reate a "inished %rodu t & Ea h assemble line onsist o" o%erators, hel%ers, ma hines and 3uality he 6ers& >umber o" (or6ers in ea h line varies "rom 21=/, de%end on style , lead time , "abri "eature et & 'n )innat om%lex se(ing are done by "our om%any namely )innat ?nit(ears $td ()?$) , )innat ;ashions $td ();$), ;lamingo ;ashion $td (;;$), and )innat 4%%arels $td ()4$)& 't has around 2,+ lines and ea h line in lude on average 5, ma hines &De an not say these lines are assembly line be ause some time one line onsist t(o or three assemble line and %rodu e t(o or three di""erent ty%e loths& Ea h line usually start (ith shoulder Foint ,"ollo(ing by rib ta 6, >e 6 Foint ,>e 6 ta%e Foint ,>e 6 to% sin ,Sleeves hems, sleeves Foint ,side seam ,Sleeve ta 6 ,Sleeve soa% ta 6, body hem , $ebel Foint et & Se3uen es de%end on the design and "eature o" the loths& Mainly, the three ty%es o" ma hine used are "lat lo 6, %lain ma hine and over lo 6& )4$, ;;$, M?$ and )?$ se(ing has three units but );$ has t(o unit& *n average )4$ and ;;$ %rodu e "orty thousands loths %er day and );$ %rodu e sixty thousand loths %er day & Brodu tion de%end on (or6ers learning urve& !he "aster they learn , the higher they %rodu e& Sim%le design (usually ordered by H&M and (almart ) are easier to learn and

su%%ort (or6er to %rodu e more & @ersatile design (usually ordered by ESB'R'! or BEM4) has slo( learning e""e t and generate lo(er out%ut &'" (or6ers has done a design %reviously, out %ut is mu h higher due to %re eding learning than a ne( design& 4nother "a tor o" %rodu tivity is lead time and 3uantity demand &'" any order has high 3uantity and om%aratively longer lead time, Brodu tivity (number o" loths7 lead time ) is mu h higher than order (hi h has smaller 3uantity and short lead time& 4nother "a tor is 3uality demand o" a buyer& '" buyer demand high 3uality out %ut slo(ing do(n due to 3uality "ailure but i" buyer is bit "lexible about 3uality ( exIDal=Mart and H&M ) ,more %rodu tivity ould be a hieved & Mer handising and mar6eting Mer handising %lay very im%ortant role in this business& !hey over 5% out o" 0% in mar6eting &!hey are involve in %rodu t, %ri ing and distribution %ro ess& Mer handiser also involve in %lanning and ontrolling& ;irstly, mer handisers re eive sam%les or s6et hes and send to sam%le room& 4"ter develo%ment o" sam%le mer handiser send it to buyer "or a%%roval& 4"ter a%%roval o" style buyer negotiate the order %ri e or ost& 4"ter getting $&C mer handiser give boo6ing "or yarn7;abri (hi h needs a%%roval "rom ost and budget& Be"ore bul6 %rodu tion mer handiser has to submit Bre=%rodu tion sam%le (ith original "abri and a essories& Dhen mer handiser give green signal, %rodu tion manager go "or bul6 %rodu tion or a tual 3uantity "or %rodu tion goal& 4t the time o" %rodu tion mer handiser has to olle t sam%le and send it to buyers "or a%%roval to ensure buyer about the 3uality& 4"ter bul6 %rodu tion buyer or buyer<s agent ome "or "inal ins%e tion and mer handiser has to onvin e her that 3uality is u% to the mar6 and as %er the re3uirement& ;inally mer handisers manage to deliver "inished %rodu t and re i%e bill o" %ayment "rom buyer ban6 to bene"i iary<s ban6& Mer handiser %lays a vital role in strategi %lanning along (ith mar6eting, sales, %rodu tion, "inan e, and administration &!hey must ensure timely line develo%ment in a ordan e (ith buyer needs and the om%anies< a%a ity and a%abilities&

$ean manu"a turing 'n #B$ #B$ has been ada%ting lean manu"a turing %ro ess in %la e o" traditional system& 't has im%lemented some lean tools and te hni3ue in some units su h as );$ and )4$& Sin e lean is more o" a %hiloso%hy than method, it (or6ing to be ame a lean organiCation& *ur dis ussion (ill "o us on tools o" lean (hi h are %ra ti ing&

1S !he "irst %illar o" $ean is alled 1S, (hi h organiCe and leans (or6 %la eI this hel%s to ma6e %roblems visible and attra ts the attentions o" everyone& Brie" des ri%tion o" 1S elements are as "ollo(sH SortH !he "irst ste% in ma6ing things leaned u% and organiCed& 'n );l all the tools su h as utting ma hine, sti 6er ma hine and other tools are 6e%t at ertain %la e& Set 'n *rder H *rganiCe, identi"y and arrange everything in a (or6 area& 4ll non lean utting de%artment "abri s are tied in sa 6 and %ut into "loor here and there but lean utting se tion arrange and bundle "abri in organiCe (ay&

ShineH Regular leaning and maintenan e& Every t(o hours (or6ers ta6e a brea6 "rom their regular (or6 and leaning their %la e (hile musi is running& StandardiCeH Ma6e it easy to maintain, sim%li"y and standardiCe& Every se(ing o%erator in );$ has list o" his7her res%onsibility (ritten in "ront o" her& &

SustainH Maintain (hat has been a hieved& !here are many %osters in );$ and )4$ (all to 6ee% (or6ers remember about 1S& ?aiCen ?aiCen is "or small im%rovements, but arried out on a ontinual basis and involve all %eo%le in the organiCation& ?aiCen re3uires no or little investment& !he %rin i%le behind is that Ja very large number o" small im%rovements are more e""e tive in an organiCational environment than a "e( im%rovements o" large value& ?aiCen %hiloso%hy involves $arge team %er"orman e board sho( the e""i ien y o" ea h team,

?aiCen board (here any em%loyee an (rite any (or6 related %roblem&

!BM board (here 4ll ma hines are listed and "it ma hine are de"ine as green and un"it ma hine de"ine as red&

?aisen suggestion box (here any em%loyee an give suggestion about im%rovement&

4 dedi ated room about the lean and 6aiCen 6no(ledge and (isdom

4 6aiCen ommittee that dis ussed about regularly meet and dis uss about di""erent issue and ho( to im%rove and solve them &

Method & Bro ess Study

$ean team "o uses on ho( a tas6 an (should) be a om%lished& Dhether o%erating a ma hine or utting or "inishing, ho( a tas6 ould be done ma6es to ma6e a di""eren e in %er"orman e, sa"ety, and 3uality& Esing 6no(ledge "rom tas6 and methods analysis 3uality and 3uantity standards are a hieved e""i iently and sa"ely&

Methods te hni3ues are used by analyCe the "ollo(ing 2& Movement o" individuals or material& /& *%erators and hel%ers a tivity& 5& Body movement (%rimarily arms and hands)&

Bro ess reengineering involve Studying and analyCing a %ro ess to rethin6 ho( re"ining urrent (ays o" doing (or6 in order to dramati ally ut o%erational osts and be ome (orld= lass om%etitors& $ean !eam bring "ollo(ing hange to a hieve more e""i ien y& 2& Eliminate numbering "or solid ;abri & /& $ean team remove or ombine some ste%s in "inishing se tion and redu e y le time "rom /&19 to 2&+9

?4>B4> ?4>4B> ould be translates as sign board or signal board &Some bas6ets are used labeled as ?4>B4> in se(ing se tion (here a ?4>B4> runner s(it h u% the light (hen ?4>B4> be ame "ull and indi ates to utting teams that an order is ready to %ull& ?4>B4> is also used "or ma hine maintenan es as (hen any (or6er "ind any %roblem in ma hine they turn out the s(it h to get attention& Em%loyee !raining

' have attained a lean !raining session (here lean team gave %resentation to a grou% o" em%loyees and dis uss them about lean methodology and their bene"it and also gave them "ree bis uit& 4BBE>#'K ;inish ;abri turnover %eriod ;inished ;abri issued in one (ee6H /1/9/5 6g Ending 'nventoryH 59+,+0 6g !urn over %eriodH (59+,+0759+,+0) L9 M 2,&0+ days

Grey ;abri turnover %eriod Grey "abri issued in one (ee6H /1018, ;inish "abri issue in one (ee6H 29+08, Ending inventory !urn over %eriod H 982, H (982,7/1018,)L9 M /&,:+ days

Aarn turn over %eriod

Aarn issued in one (ee6H 2:251, 6g Ending 'nventoryH 5/,,, 6g !urn over %eriodH (5/,,,72:251,) L9

M 2&2+days