RMG Garments Final Report
RMG Garments Final Report
Submitted To:
Dr. Mohammad Morshedur Rahman
Associate Professor
Department of Accounting
University of Chittagong
Submitted By:
Fahmida Akter
ID: 16301052
Session:2015-16
Program: BBA
Department of Accounting
University of Chittagong
Date: 11-05-2020
LETTER OF TRANSMITTAL
Dear sir,
With great pleasure, I would like to submit my internship report on “Operation and
production management: A study on KDS Garments Industries Ltd.” that you have
approved and assigned as a compulsory requirement. I have tried my level best to
bring out the original scenario of KDS Garments with full of effectiveness and
efficiency. I have already learned a lot and have gained valuable experience and
knowledge while collecting the information for the report. It was certainly a great
opportunity for me to work on this real life work to actualize my theoretical
knowledge of this course in the practical arena and some more which is out of this
course.
I hope that you would be kind and generous enough to accept my sincere effort and
oblige thereby. If you come across any questions or quarries regarding this report, it
will be my pleasure to clarify your questions.
Sincerely yours,
………………………..
Fahmida Akter
ID: 16301052
BBA Program, Session: 2015-2016
Department of Accounting
University of Chittagong
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ACKNOWLEDGEMENT
I would like to express my gratitude to all the personnel who were involved directly
or indirectly in the preparation of this report. I apologize to the people whose name
that I have not mentioned but their contribution is highly appreciated by me.
Finally, I will show my gratitude to all the Management and non-Management staffs
who have helped me during the internship period and the entire persons of the
organizations who somehow have the impact on me in completing my whole report.
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Table of Contents:
Chapter – 1 Introduction
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3.4.2 Sewing Department Activities 25
4.1.1 Strength 35
4.1.2 Weakness 35
4.1.3 Opportunities 36
4.1.4 Threats 36
5.1 Findings 39
5.2 Recommendations 41
5.3 Conclusion 42
References 43
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CHAPTER: ONE
INTRODUCTION
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1.1 Background of the Study:
The readymade garment industry acts as a catalyst for the development of
Bangladesh. The “Made in Bangladesh” tag has also brought glory for the country,
making it a prestigious brand across the globe. Bangladesh which was once termed
by cynics a “bottomless basket” has now become a “basket full of wonders”. The
country with its limited has been maintaining 6% annual average GDP growth rate
and has brought about remarkable social and human development. The readymade
garment industry (RMG) of Bangladesh commenced its journey in the late 1970s and
within a short period of time emerged as an important player in the economy in
terms of export earnings, employee generation and poverty alleviation and
empowering of women. The sector accounts for 83% of total export earnings of the
country. When our only major export earner “the jute industry” started losing its
golden days, it is the RMG sector that replaced it, and then, to overtake it.
The industry that has been making crucial contribution to rebuilding the country and
its economy is none other than the readymade garment industry which is now the
single biggest export earner of Bangladesh. The apparel industry of Bangladesh
started its journey in the 1980s and has come to the position it is in today. KDS
Garments industries ltd. Is one of the most renowned business and industrial
conglomerates of Bangladesh, based mainly in the port city of Chittagong but with
extensive operations in Dhaka as well. They believe in quality and time and highly
emphasize in maintaining a concerted harmony in its working process and its
environment. The quick expansion of the industry was possible because of the less
complicated technology, cheap and easy way to operate sewing machines and
relatively cheap and abundant female workforce. There is no doubt that Bangladesh
is the world’s second largest Readymade Garment (RMD) exporter, just behind
China. Country’s 81% of exports come from the RMG sector and the textile and
apparel sector contributes around 20% to Bangladesh’s GDP. It employs around 20
million people in the country and is the major driving force of the country’s
economy.
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1.2 Objectives of the Study
Primary Objective: For any business student only curriculum activities are not
enough for handling the real business situation. Internship is a part of the Bachelor
of Business Administration program that provides a job experience for the students.
Internship program is a perfect match of the theoretical and practical knowledge. So
it is a mandatory requirement for the students of Accounting Department, University
of Chittagong.
Specific Objectives:
Primary Sources:
Face to face conversation with the manager of production department
Direct observation of the employees day to day activities
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Personal daily notes that contains my daily acquired experience.
Secondary Data:
The annual report of KDS Garments Ltd. That provides the public information
about their organization. It helps to find out the category of the company,
types of the company, corporate information of the company etc.
Company official papers and other articles like production related books,
internet, newspaper etc.
1. The annual report of the KDS Garments Industries Ltd. Did not provide
much information that I needed.
2. Though the top management formulates the strategy of the industry,
which is very much confidential, the manager failed to supply the
relevant data in respect to demand.
3. The duration of the study was short to know all the production
process and activities of the industry.
4. In garments factory most of the employee does not have any
educational background. They do their job only with experiences.
5. It is very difficult to discuss their Operations and HR practices
separately.
6. To protect the organizational security in regard of maintaining
confidentiality, do not provide sensitive data and information.
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CHAPTER: TWO
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2.1 Overview:
KDS Garments Industry has made its mark in the readymade garments
manufacturing company in Bangladesh being the pioneer and one of the largest
export oriented company in our country. The group was founded in 1983, through
the establishment of one of the first garments industry of Bangladesh, and over the
last 35 years, through innovation, dynamism, untiring effort and dedication. Today
the total group can proudly declare over USD 500 million in annual revenues in total
with over 25000 employees, staff and workers along. KDS is also extensively involved
with a large number of corporate social responsibilities and philanthropic initiatives.
KDS believes in clean and transparent management of operations and breeds a
culture of corporate and independent governance by professionals.
Mr. Khalilur Rahman is the Founder of the KDS group and the chairman of the
company. He is a seasoned and highly experienced businessman and successful
entrepreneur. Starting his journey in 1967 from a small-localized business, he kept
on diversifying into many areas of his interests. His love for the struggling people of
his area inspired him to start exploring labor intensive ventures. Today KDS group is
one of the largest business conglomerate in the country having business links with
USA, Canada, Europe, Japan, Australia, India, China etc. and the group was awarded
President Gold Trophy for export 9 times and got recognition of Quality Garments
Exporter from foreign retailers 4 times.
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2.2 Corporate Information:
Type private company
Industry Conglomerate
Founded 1983
Shipping
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2.4 Corporate Mission:
“To become a globally preferred supplier of apparel solutions upholding our social
responsibility”
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2.7 Organizational Chart of KDS Garments Ltd.
CHAIRMAN
MANAGING
EXECUTIVE
RECRUITMENT
&SELECTION DGM-
PRODUCTION & COMMERCIAL
ENGINEERING
TRAINING &
DEVELOPMENT
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2.8 Departments of KDS Garments Ltd.
KDS Garments Ltd. had organized and restructured its different departments in order
to make the company more dynamic, effective and goal-oriented. According to that
KDS Garments Ltd. currently has seven major departments to provide smooth
services to its clients as well as efficient management of the company. These
Departments are:
Human resource
& Administration
Department
Accounts
IT Department
Department
KDS
Sales Internal Audit
Department Department
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These products are:
KDS Garments Ltd. has an in-house design team that is continuously involved in
analyzing the latest trends in the apparels industry. This effort culminates in the
development of product collections twice a year to showcase their capacities to
potential and existing clients. Their design team has extensive knowledge of the
different fabrics and finishing technologies and able to work directly with customers
to suggest innovative and cost-effective solutions to various design challenges.
KDS Garments Ltd. also provides a comprehensive product development lab where
their customers can work side by side with their design team to experiment and
develop samples. This effort reduces the cost and time required for product
development.
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CHAPTER: THREE
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3.1 Introduction:
Operation and production management is not a new concept, in fact its history dates
back to the late 18th century. Beginning just prior to the industrial revolution, and
continuing into the 21st century, operation and production management has
continually developed, allowing for greater and greater production efficiency.
Operation management is the act of controlling and directing the design, production
and delivery of products. Although people have been producing and selling products
since the very beginning of civilization, the implementation of operation
management is a relatively new phenomenon. Operation management came to
prominence in the 20th century, but its roots can be traced back to the 18 th and 19th
centuries. Operation management is an area of management concerned with
designing and controlling the process of production and redesigning business
operations in the production of goods and services. It involves the responsibility of
ensuring the business operations are efficient in terms of using as few resources as
needed an effective in terms of meeting customer requirements. On the other side,
Garment production is an organized activity consisting of sequential processes such
as product design, fabric selection and inspection, pattern making, grading, marking,
spreading, cutting, bundling, sewing, pressing or folding, finishing and quality control
etc.
Designing department
Merchandising department
Pattern making, CAD department
Sampling department
Fabric store and sourcing department
Production planning and control department
Cutting department
Sewing department
Quality control department
Garment washing department
Finishing department
Packaging department
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3.3 Pre-production Activities of KDS Garments Ltd.
3.3.1 Designing department activities
Apparel design department is responsible for product development. They focus on
developing garments designs in similar product categories the company does its
business. Designers develop new design collection in every season. Designers make
designs as per the latest trends and buyer test. Designing department plays an
important role in retaining customers by showing new designs to their buyers in
every season.
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Following are the major activities of pattern making department:
Pattern making
Pattern grading
Sample development
Garment FIT checking and correction of patterns
Incorporate buyer’s comments on samples
Making production viable sample
Fabric consumption calculation
Marker planning
Sourcing of fabrics
Receive of raw materials
Prepare shade band for dyed and printed fabrics
Basic testing of physical properties of fabrics
Issue and maintain record of fabrics
Fabric printing and fabric reconciliation.
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3.3.6 Production planning and control department
Production planning department is responsible for planning and scheduling orders.
This department is known as PPC department. They execute production and do
follow with all production processes. Production planning and scheduling of activities
are essential to produce raw materials on time and able to handover shipment on
time.
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Fabric receiving:
KDS Garments has separate warehouse or dedicated area to store their fabrics.
Before cutting they need to receive fabric from the store.
Fabric relaxing:
“Relaxing” refers to the process that allows the material to relax and contract prior
to being manufactured. This step is necessary because the material is continually
under tension throughout the various stages of the textile manufacturing process
including weaving, dyeing and other finishing processes. The relaxing process allows
fabrics to shrinkage during customer use in minimized. Garment manufacturers
perform the relaxing process either manually or mechanically. KDS Garments has
their relaxing machine by which they relieve tension of the fabric.
After the fabric has been relaxed, it is transferred to the spreading and cutting area
of garments. The fabric is first to cut into uniform plies and then spread using a
computer-controlled system in the preparation for the cutting process. The fabric is
spread to:
The number of plies in each spread is dependent on the fabric type, spreading
method, cutting equipment and size of the garment order.
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Figure: spreading, form layout and cutting
Marking:
This is a manual or computerized technique. The marker planner uses full-size
patterns and arranges them in an economical manner on marker paper. This is a
specially printed paper having symbols on it which enable the marker planner to
visually control the positioning of components according to specified grain lines.
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Cutting of fabrics:
This is the major operation of the cutting room when they spread and cut into
garments. Of all the operations in the cutting room, this is the most decisive action
because once the fabric has been cut, very little can be done to rectify serious
defects.
All cutting operations are carried out by straight knife cutting machines. Any cloth
problems created in the cutting room can affect the output in the sewing room.
Numbering/ ticketing:
Once the pattern pieces are cut by the cutting machine, they are then ticketed. Cut
components are grouped together as per their sizes and taken to the checking table.
Here the cut components are inspected for any error. It is very important to take
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care that pieces cut from different bolts of fabric are not mixed up. In this case color
wise sorting will also be required.
Checking:
The ticked panels are now sending to the checking for inspection of every individual
pieces for any objectionable faults. Panels having faults like wrong grain line,
inappropriate size, incorrect shape and any fabric defects like holes, cut, shade
variation etc. They are not within the acceptable quality parameters, are removed
from the cut lay. A cutting component checking report is filled for the total quantity
cut, checked and approved. The rejected pieces are sent back and equal number of
trash panel are separately cut, replaced in the set and ticketed with the same
number as the rejected once. Other mend able faults are marked with an alteration
sticker and passed on. These will be spotted out during garment finishing or washing.
Bundling:
The checked components of one style and in one size are now bundled. The size of
bundle depends upon the requirements of the production plant. Each bundle will
contain pieces of same style and same size only. These pieces are stored in racks
made beneath the cutting table. The cutting department issues the amount required
by the production department as and when ask for. The cut component may be
issued in installment or all at once as the needs of the production department
against the job order.
For example, the first operator may sew the collar to the body of the garment and
the next operator may sew a sleeve to the body. Quality assurance is performed at
the end of the sewing line to ensure that the garment has been properly assembles
and that no manufacturing defects exist. This labor-intensive process progressively
transforms pieces of fabric into designer garment. To deliver quality with the
quantity KDS Garments ensure well checking and quality control procedure in every
assembly line.
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Figure: Sewing Department of KDS Garments Industries Ltd.
The main function of production department is stitching garments. But there are
many associated activities performed by the production team to run the production
floor smoothly. The major tasks of this department are described here but are not
limited to these only.
Style Analysis
The line supervisor analyzes the garment construction of the style to be loaded to
the line. He calculates the machine requirements for the style, based on garment
construction.
Line supervisors calculate the estimated cost per production. In the piece-rate-
production system, the supervisor sets piece rates for stitching operations. KDG
Garments calculate direct labor costs based on the standard allowed minutes to
produce garments.
The floor in-charge and line supervisor plan the daily production output. They take
information on upcoming orders from merchandiser or the planning department and
planned manpower and machine requirements in advance.
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Setting the line
Line supervisors set the sewing line for new orders. Line setting involves the tasks of
placing sewing in a sequence, by the allocating operators to each machine, giving
work to operators and helpers and giving instructions to operators on how to
undertake operations and the required stitching quality.
Stitching garments
The sewing department stitches garments and makes clothes. Operators sew
garments using different types of sewing machines. An operator is given single or
multiple operations to sew.
To get maximum production from the line, line supervisors balance line by adding
additional operator.
Marking parts
Marking is done on the garment component needed to point a position from where
the stitching is to be done. Helpers mark on garment parts as per process
requirement by using marking chalk or magic marker.
Stitching alteration
After segregation, defective garments are sent back to the stitching section. Seams
are required by re-stitching. If defects are related to the fabric, part changing is done
by replacing the defective component with the correct part.
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Managing documentation
The department maintains various logbooks and records. The sewing department
records the details of receiving cuttings from the cutting department and issuing
garments to the finishing department.
They make reports of the daily production on line-basis and the manpower used in
each line.
Recruiting operations
In this factory line supervisors are responsible for bringing sewing operators and
recruiting operators through skill assessment test.
Fusing
Fusing is one kind of alternative method of fabric joining which is widely used to
attach the interlining. At present, apparel manufacturing cannot be imagined
without fusing process. Fusing interlining is the process where wrong side of the
fashion garment is fused with a thermoplastic resin and can be bonded with another
strip of fabric by the proper application of pressure and heat at a specific
temperature and time. Fusing certain components creates strength and stability and
improves the shape of garments.
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3.4.3 Finishing activities:
The folding, tagging, ironing, hangtag attaching, thread trimming, packaging etc. are
done in the packing section in the finishing department. Finishing is done to prepare
the final garment according to the quality standards for the buyer before packing it.
Thread trimming
Pieces received from the washing department or from the assembly line now come
for thread trimming where trails of thread are cut off from the seams, buttons etc.
manually with the help of trimming scissor.
Thread sucking
Thread sucking machine is extensively used to remove dust particles and all loose
thread from finished garments products.
Checking garments
All garments are checked at the finishing stage for visuals and measurement.
Finishing checkers check the complete garment inside and out. Checking is done for
garment detailing such as care labeling and trims.
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Button attach and button holding
Products those have trimming like button, snap button, eyelets are attached in
finishing section.
Ironing garments
Garments are ironed using a steam iron. This is done to remove creases in the
garment.
Pressed garments are folded in a specified dimension. Tags such as price tags and
hang tags are attached to the garment.
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Packing garments
Packing is the last stage where the finished garments are primed, organized, geared
up for the shipment to the buyer. KDS Garments pack their products into poly bags
As per customer requirements. Individual poly bags are then packed into bigger
cartons. After this the packing-in-charge prepares a list for the shipment. After
packing is completed for an order, the finishing department informs the concerned
merchant.
Quality department finally perform internal shipment audit and check quality by
collecting ten or more samples and this audit is done prior to final inspection.
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Marker planning, calculating marker efficiency and work on saving fabric
Check the quantity of the order from the merchandising department and the
quantity of fabric according to the marker ratio.
Maintain and record amount of fabric consumption and determine
production fabric average
Meet with production manager and discuss about cut plan and arrange to
keep the sewing section running continuously
Conduct the activities of all cutting operators and assistant cutting operators
Submit daily work reports to the technical manager and production manager
and ensure the daily productivity of the cutting section.
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Ensuring legal obligations are followed and ensuring compliance with
regulatory bodies and with health and safety guidelines.
Overseeing product development procedures to identify and any deviations
from quality standards.
Inspecting the final output, comparing it to the requirements, and approving
or rejecting the final products.
Gaining feedback from the clients, attending meetings, submitting reports
and assisting external auditors and inspectors.
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CHAPTER: FOUR
SWOT Analysis of KDS
Garments Industries Ltd.
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4.1 SWOT ANALYSIS
SWOT Analysis is the tool of analyzing of strength, weakness, opportunities and
threats of a particular company. Strength is the advantages coming from the internal
business environment. Weaknesses are the internal bottlenecks. Opportunities
indicate privileges that come from the external business environment where threats
make the external environmental disadvantages. The strength, weakness,
opportunities and threats of the KDS garments are analyzed in the following way:
4.1.1Strength:
Their extensive experience in the industry has helped them to acquire
knowledge and information to design products and services that best suites
requirements of their clients.
They offer flexibility, competitiveness and sharper lead-time to facilitate
demanding sourcing requirement.
Their national network supported by a dynamic team of professionals allows
them to serve their clients as a strong supply chain partner providing
production consolidation and solution based services.
They are preferred by world most reputed brand for as reliable and quality
supplier for their garment products.
The quality of the products of KDS Garments Industries Ltd. is better than
most of the local RMG companies, comparing the quality, the prices of the
products are within the range of the target segment.
They deliver innovation, efficient and value driven solutions for their
customers.
4.1.2 Weakness:
The garments sector is fully dependent on either the import of local buying of
raw materials depending on the product. They have no production facility of
these materials.
Maybe for poor salary structure or weak corporate culture, the employee
frequent turnover rates are affecting internal activities.
Workers are not highly skilled as per as market requirement.
Lack of proper motivation and training
Lack of coordination within departments
Lack of proper logistic support.
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4.1.3 Opportunities:
The society is changing, people are becoming very conscious about what they
are consuming and using. This is a good prospect for garment industry.
The number of dual income families is increasing at an alarming rate. The
lifestyle of people is becoming faster and this leaves them with minimum
time to spend in fashion. Therefore, it is a huge opportunity for fashion
market.
Globalization is a major factor for them to increase their market scope in the
international arena. For globalization, it is much easier now to enter foreign
market and increase their exports to earn higher margin.
Location support advantage and government support
Development of product design and the market intelligence capabilities to
cater to the new market demand.
4.1.4 Threats:
Globalization can also backfire. There are many corporate giants which are
trying to enter our market. Being a third world country, our country is a
market for everything. Around the world, KDS garments face stiff competition
but they aim for a more better and sustainable future.
With increasing technology, our country being high in corruption, use those
technologies in order to make fake products under different brand names.
These technologies help those people to make similar kind of product and sell
them by using the reputation and goodwill of those products.
The KDS Garments Industries ltd. is a sister concern of the KDS Garment.
Therefore, the goodwill and reputation of the products is like a chain that is
binding all of them. If there is any problem with the reputation and quality of
any one sister concern, the effect would be on all of them. So all the concerns
have to maintain the same standards.
The current corporate giants are the biggest threats not only in terms of
competition but also in ways of how they are exploiting or using the
supplying industries for their own operation.
The unstable political condition is a big threat for any company. It can
hamper the regular official work and distribution of products.
Changing pattern of buyer’s needs, increasing material cost, failure of
shipment.
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Sometimes corruption can result in certain changes of rules and regulations.
Any foreign company can easily bribe or can do heavy lobbying in order to
enter the market with a product of better brand image.
However, despite of increasing raw material and many other challenges they have
several initiatives to improve their operational fundamentals and continuously
putting focus on increasing operational efficiency, enhancing employee productivity
and improving their brand image through better service. They are looking to the
future, pursuing new ideas and innovation to serve their customers’ needs and
succeed in the changing, dynamic markets they will face in the future. Their
employees are also committed and hard working to mitigate several challenges. This
year they have transformed their company from a growth-driver to a value driver
where their primary focus has been to create more values to their customers for a
given sales price-point. Besides they have introduced several new product categories
within each of packaging soft-line packaging.
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CHAPTER: FIVE
Findings, Recommendations
& Conclusion
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5.1 Findings:
Garment manufacturing is a complex process that starts with sample development
and end after shipping the finished garments to the buyers. Thus departments are
set-up based on the group of activities to be performed by a team of people. From
pre-production activities to finishing activities every official bodies, managers,
machine operators, employees are very much focus and committed to their success
of the mission.
Type of fabrics they use: Single jersey/double jersey, Rib, French Terry, Bonded
Fleece, Polar Fleece, Polyester etc.
Their main buyers are Target (U.S.A), Target (AUS), WAL-MART etc.
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Production manager ensures manufacturing process efficiently. Here supervisors
record daily production status by calculating efficiency of the target production.
Another important task supervisor ensures which is the maintenance of sewing
machine and preventing stitching faults. For increasing the productivity and
producing products within targeted time they maintain the improved process
regularly. Working situation is very much important to continue the work. It
depends on the strong machineries, clean and silent environment. KDS garments
ensure healthy workplace environment that improves their productivity and reduces
costs related to absenteeism, turnover, worker’s compensation and medical claims.
To become profitable they are keeping balance between prevention cost and
appraisal cost with internal failure cost and external failure cost.
KDS Division believe in working closely with their clients to understand their needs to
design services. They are always concerned for the better management of entire
production and service system. But every system is bounded by some kinds of
problem and limitations. The major problems that are confronted by this company
are given below:
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5.2 Recommendations:
On the basis of findings of the study, I would like to recommend the followings:
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5.3 Conclusion:
At last, we can say that the management portion of all departments of KDS garments
is performing its job efficiently. In fact, all the departments are important equally to
increase the productivity by low cost and to maintain the well reputation. Besides,
executives are very industrious and serious in performing their jobs. Though there
are also some who are not committed. The executives hardly try to achieve 100%
efficiency.
If the company follows the recommendation made in this report, we believe that it
can overcome the present problem. And in the long run the company will be
benefited and it may become the market leader in near future. There is no doubt
that KDS Garments has created a good reputation in the market by its quality
products. It should maintain the quality and try to diverse the business.
I have ensured my best ability and attempts to present details of the functions of
KDS Garments Industries Ltd throughout my report in a decent manner. If there is
any shortcoming in this report, that is nothing but the limitation of my knowledge
and ability.
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REFERENCES:
Annual report of KDS group 2018-19
Guidelines of production manager
Internet and other articles.
KDS Website- www.kdsgarments.com
Workers and employees and management staffs of areas
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