INTRODUCTION: Echotex Limited is a UK-Bangladesh joint venture company with a business nature of Knit-composite textile (comprising spinning to finished good). Echo sourcing UK limited under the prominent leadership of Mrs. Para Pa ra Hamilton & Mr. Shafiqul Hassan as Chairperson & managing director respectively engaged into this business for several years. However with them there are several people who desired to form a company & agree to take all kinds of responsibilities of the company. The Metropolitan Chamber of Commerce & industry recently awarded Echotex in recognition of its contribution in saving the environment through ethical business practice. 80% of shareholding is owned by British nationals & rest is owned by Bangladeshi peo ple. It falls under the umbrella of a group of concern. The sister concerns are as follows: 1) Echos Echosour ourci cing ng Limit Limited ed.. 2) Quality Quality Assure Assured d Limite Limited. d. 3) Equity Equity Resour Resources ces Limite Limited. d. 4) Chil Childr dren en’s ’s Hop Hope. e. 5) Stit Stitch ch Righ Rightt Limi Limite ted. d.
Echotex Ltd established as a complete supply chain clothing company to combine design, manufacturing and delivery from Bangladesh to European retailers with experience of over 15 years. Echotex Ltd also started to deliver products in North America.The Immediate aim is to become a World Class supplier of merchandise in terms of quality, lead-time and unbeatable value. Echotex Ltd feeling pride in setting up state-of-the-art plants in Bangladesh with the world's best machinery in spinning, knitting, dyeing and garments production within the group. Echotex Ltd have placed significant effort in Human and IT resources and consider compliance of Ethical Aims on labour and environment as an inclusive part of our growth and business. Echotex Ltd also set up an organisation called Children's Hope for the education and health care of underprivileged children in Bangladesh over the past three years. Quality control of Echotex is not achieved just by having 'zero tolerance' on each garment rather all garments are checked as a s cut piece, in-line 'stage inspections', in-line final inspection followed by 2.5 AQL pre-shipment inspections. Lab tests are carried out by European testing houses on fabric and garments to meet specific requirement of individual buyer. Our strength to control the supply chain from yarn selection to shipment processingtracking and delivery, has placed us in a position where we consider ourselves to be faster on delivery, better on quality and have unbeatable value in our products than any of our competitors.
Echotex is currently employing 4000 people. It uses TALLY as accounting software. It is a garment manufacturing factory which will eventually employ up to 10000 workers. The factory’s vision is to be a commercially viable green community development company with people in its heart. Its mission is to be industry role model through employing passionate people with a desire to produce the best product in the best way. Echotex is an equal opportunity employer.
VISION: The company‘s vision is to be a unique & green commercially viable community development company with people in its heart.
Mission: Its mission will be to develop as a CDC & industry role model through employing passionate people with a desire to produce the best product, in the best way for the best reason: Caring for the workforce & enriching their life. Three major issues are as follows:
1) Enviro Environme nmenta ntall protec protecti tion on 2) Compli Compliance ance & ethical ethical busine business ss practi practices ces.. 3) This must must be addressed addressed to sustain sustain fierce fierce competition competition in Bangladesh Bangladesh’s ’s apparel apparel business.
CORPORATE INFORMATION AT A GLANCE: (Information as per our inspection) 1) Chairperson: Para Hamilton. 2) Managing Director: Mr. Shafiqul Hassan Quise 3) Board of Directors: Executive directors- Mohammad Bin Quasem Operations director- Masum Chowdhury Finance director - Sayed Abdul Mannan Project director Mohammad Taher Chowdhury Administrative director Brigg.(rtd.) Rejaul Karim 4) Finance Controller : Anisur Rab Chowdhury. 5) Company Secretary: Anisur Rab Chowdhury 6) Auditors: Maish, Muhit, Haque & co. 7) Bankers: # Bank asia Limited. # Brac Bank Limited. 8) Legal Advisor: Advocate Abu Bakar Siddique. 9) Registered office: UTC building (level 13), 8 panthapath, kawranbazar, Dhaka. 10) Country office: Lane 5, House 134, new DOHS, Mohakhali Dhaka. 11) Corporate Head Quarters: The old Couch House, 25Dunster Garden UK.
12) Factory: Chandra Pollybiddut, Kaliakoire, Gazipur. 13) Sister concerns: Quality Assured Ltd. Equity Resources Ltd. Children’s Hope. Stitch Right Ltd. EchoSourcing Ltd. 14) Authorized Capital: TK 10 crore 15) Manpower: Management - Staff – 250 & Worker – 4000 16) Date of start : 1st January 2007 17) Premise Premises: s: o
o
o
Garments Building: Total 42000 sft each floor of 10 storied building of which 4 floors has been completed. Dye house : Total 55000 sft each floor of 2 storied building of which 1 floor is for dyeing & other is for knitting. Utility building: Total 12000sft each floor of 2 storied building.
18) Products: T-shirts, polo shirts shorts – (men’s wear, children wear & women’s wear). 19) Buyers: New Look (UK), Debenhams, Fat Face, Peacock & Primark 20) Types of ownership: Jointventure. 21) Markets: Echotex Ltd is 100% export oriented garments factory & its Market is international. All the buyers are foreigner. 22) Time of changing : Echotex Ltd established in 2007.From the beginning of its establishment this garments is changing rapidly. From 2009 it becomes a great change.By making quality product, delivering fastly, Ensuring workers rights, following EU code of conduct & protecting environment. Echotex Ltd awarded in 2010 for contributing in the protection of environment. Strong supply chain helps Echotex Ltd to achieve the business goal.
Products: Echotex Ltd. Produces T-Shirt, Polo Shirt, & Shorts. These clothes are making for male female & children. Picture of our products:
ECHOTEX LTD. At a Glance -
30 lines lines of sewing sewing factory factory with with 14.4 milli million on pcs per year production production capacit capacity y and most modern technology from Japan.
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45 tons tons of knit knitti ting ng and dyein dyeing g unit unit with with all Euro European pean machi machiner neries ies..
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Most modern modern printing printing facility facility with 2.7 milli million on pcs per year year product production ion capcity capcity..
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ETP ETP and and WTP WTP with with zero zero disc discha harg rge. e.
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Adeq Adequat uatee spa space ce to be gree green n fac facto tory ry..
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Work Worker erss will will be be paid paid leg legal al min minim imum um or above above..
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No chil child d lab labor or will will be allo allowe wed d
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Adequat Adequatee health health and and safety safety meas measure uress are in in place place and prop proper er recor records ds are are maintained
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Identi Identifie fied d fire exit exitss in English English and and local local language language,, adequat adequatee number number of fire fire extinguisher, three stairs, early warning system and proper evacuation system will be placed.
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Worker Workerss / employe employees es will will be served served with with lunch lunch free free of cost. cost. Servi Serving ng lunch lunch has double benefits – It saves working hours and ensures good health of workers.
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Full fledged fledged medical medical centre centre with with full full time time doctor doctor will be in place to to check check health health care of employees.
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Day care care facil faciliti ities es for the the child’ child’ss of the emplo employee yeess will be be availab available. le.
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Azo Azo dyes dyes wil will not not used used..
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Factor Factory y will will use ball ball poin pointt needle needle as a poli policy cy in order order to to avoid avoid needle needle holes holes
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Sample Sampless will will be checked checked thorou thoroughl ghly y in in sampl samplee room room..
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All fabrics fabrics will will be checked prior to cuttin cutting. g. Each Each piece piece of cut garmen garmentt will will be checked after cutting and after sewing to ensure effective quality control
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Each garmen garmentt particul particularly arly those of childre children n wear will be passed passed / checked checked through through a metal detector.
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Color continuity continuity cards will be maintai maintained ned to to check batch to batch batch color color standard standard / shading / matching etc.
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All colo colors rs will will be check checked ed through through the the light light box and and CDM (spec (spectra tra photo photo meter meter.) .)
A report was published in The Daily Star on 7th June 2010 about Shafiq Ul Hassan who is the Managing director of Echotex Ltd.
Caption of the report was: The
Green Apparel maker
Three major issues -- environmental protection, compliance and ethical business practices -- must be addressed to sustain fierce competition in Bangladesh's apparel business. Strict implementation is paramount now, observes Shafiq Ul Hassan, managing director of Echotex Ltd, an export- oriented readymade garments factory. The same is true for international buyers, as they are the consumers, he adds. "Otherwise, you'll not survive in the business for long," he says. The Metropolitan Chamber of Commerce and Industry recently awarded Hassan in recognition of his contribution in saving the environment through ethical business practice. The company was also nominated last week for the National Environmental Award 2010 from the environment and forest ministry. Hassan, a chemical engineer from the UK, set up an effluent treatment plant (ETP) at his factory in Chandra Polli Bidyut at Kaliakoir, Gazipur, on the very first day of its operations to keep environment pollution at bay. Echotex, a British-Bangladesh joint venture, was established in 2009. ETPs are used in factories to drain d rain chemical dyes so as not to destroy the quality q uality of water, animal and fish species. Hassan says many garment owners in the country coun try began operations without ETPs. However, on pressures from the government and foreign buyers, now many move to set up such treatment plants. The planet does not belong to an individual -- it belongs to inhabitants of the earth, he says. "So, it's the responsibility of all to save the environment." "It's very easy to destroy, but very difficult to build," Hassan says. He has plans to invest $1 million to update the ETPs in his factory in the next three years. At present, p resent, the company is able to dye 15 1 5 tonnes of fabric a day. 7.5 lakh litres of water is treated in the factory everyday. The proposed updated ETPs will have a zero discharge capacity, meaning the treated water would be so pure that anybody can drink it, the Echotex Echo tex MD says.
The company also has plans to expand operations in the next five years, as growing demand from international buyers backs the sector, he says. Around 30 lines, or 1000 more sewing machines, will be added to the existing 30-line factory. At the same time, the company also plans setting up a spinning mill, according to Hassan. It eyes $22 million turnover this fiscal year. Echotex is not Hassan's first venture in apparels. He has been running Echo Sourcing, an outsourcing British-Bangladesh apparels company, with his British partner Para Hamilton, since 1996. Hamilton, chairperson of both Echo Sourcing and Echotex, supervises product designs from the company's London office. Echo Souring purchases 95 percent of Echotex's production. Last year, Echo Sourcing earned $35 million from the sale of goods. Its major buyers are New Look, Debenhams, Fat Face, Peacock and Primark, Hassan says. Echotex mainly produces printed women's T-shirts. Born in a remote village in Sunamganj in 1958, Hassan left for the UK in 1971, when he was a student of class VII at Saint Gregory School, Dhaka. He previously worked for Fair Pattern Ltd, a UK-based sourcing company, and later for Brac, a Bangladeshi nongovernmental organisation, before starting Echo Sourcing. "I worked day and night to set up Echo Sourcing," he says, adding that the company made a lot of profit when New Look started placing orders in bulk b ulk quantity. The company won the hearts of buyers for quick delivery of orders, he adds. add s. "We used to outsource a lot of apparel items during the early years of operations. At that time, buyers used to give only 15 days of lead-time. We were somehow able to send the items before this 15-day lead time," he says. Now, the number of Echotex's working employees reaches 4,000 from 300 at the beginning. Being a compliant factory, it never faced labour unrest as it paid salaries and other benefits to its workers on time. Moreover, the company serves lunch to 4,000 members of the staff a day. Serving lunch has double benefits -- it saves working hours and ensures good health of the workers, Hassan says.
“Workers' welfare is the main practice of the company's co rporate social responsibility.” The instigation of unrest by outsiders is a major concern for the garments sector, he says. "Other concerns, like a shortage of energy and power and poor infrastructure, are manageable, but influence from outsiders ou tsiders is difficult to manage." According to Hassan, business should not become big for the sake of becoming big -- it should incorporate environmental protection and ethics. "Business, not in volumes, but for quality."
Reporter Refayet Ullah Mirdha Mailing Address
[email protected]
Brief profile of the sponsors:Chairperson: Ms. Para Hamilton is the director of echo sourcing UK ltd, a garment export company based in UK. She has got vast experience in garment designing and responsible for sales. She is also the chairperson of Echotex Ltd.
Managing director: Mr. Shafiqul hassan, is basically a chemical engineer from the UK. Born in a remote village in Habiganj in 1958 , hassan left for the UK in 1971, when he was a student of class v at saint gregory school. Dhaka he previously worked for fair pattern Ltd, a UK-based sourcing company, and later, for brac, a Bangladeshi non governmental organization, before starting Echo sourcing. “I worked day and night to set up Echo Sourcing,” he says, adding that the company made a lot of profit when Newlooks started placing orders in bulk quantity.
Director: Mr Mohmmed Bin Quasem, ms in economics econo mics from USA has got 12 years experience of running composite garment industry & director in charge of quality assured Ltd. He has been instrumental in setting up of Echotex Ltd. Mr. Quasem will be responsible for day to day operation of the company.
Director: Mr. Masum Chowdhury is a successful professional in garments business with a vast experience of 22 years. He is the director of Quality Assured Ltd. Since last 5 years & also for the new joint venture company Echotex Ltd. Ltd.
Director: Mr.Mohammed Taher Chowdhury an engineer by profession is a well known business personality with garments industry since 1990. He is also well conversant with all kinds of textile machinery & equipments & was w as the country head for a german g erman company in fabric manufacturing.
Director: Mr. Syed Abdul Mannan is a renowned business personality. He started his career with pharmaceuticals industry & later on moved into garment sector. He has more than 20 years of experience in this industry. He is the director of Echotex Ltd, Quality Assured Ltd.garment buying house Echo Sourcing So urcing Ltd. & Equity Resources Ltd. a share brokerage house in Bangladesh.
Expansion Plan of EchoTex Ltd. The company also has expansion plan to expand operation in the next five years, as growing demand from the international buyers’. Around 30-lines, 3 0-lines, or 1000 more sewing machines will be added to the existing 30-line factory. At the same time the co mpany also plans setting up a 50000 500 00 spindle spinning mill by spending Tk150 million according to Hassan. It eyes $22 million turnover this fiscal year.Echotex Ltd. will also be listed in the Bangladesh Stock Market to collect that money to set up the Echotex spinning mi
Organizational Organizati onal Hierarchy of EchoTex Ltd.
Chairperson Para Hamilton
Internal audit and risk management
Managing director Shafiqul Hassan
Finance director
Operations director
Human resource Management
Executive director
Project director
Administration
Production
Fabrics
Finance
Quality control
Marketing
Commercial
Project management.
Chapter- 2
1.2 Objective of the study: This report is all about the interdependency among the various departments in a garments factory. We made this report report on the EchoTex Ltd a well-known garments garments in the garments industry..We tried to find out what is production Plan really is in a true sense when it is used in a company. Our special focus was on the competitive analysis of the production department Industrial Engineering department & Enterprise resource system which are the core of the Echotex Ltd. Different competitors, setting target production strategies and their implementation. Our additional focus was on the merchandising department, Human Resour Resource ce depaet depaetmen mentt produc productio tion n syste system, m, lead lead time, time, per unit unit cost cost & invent inventory ory management.
Therefore, if we point specifically the main purpose of our study are as follows,
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To present an over view of Echotex Ltd..
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Analyzing the position of Echotex Ltd. in the RMG market of Bangladesh.
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To realize how manufacturing strategies are used in real life situation.
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To identify the efficient production system.
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To make a comparison between the various department that are related to the production system
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To identify and analyze the method of Echotex production& other strategies.
1.3 Methodology: When we were given this term paper on garments in RMG sector, the first question raised in our mind was from where we should start, which type of data, what type of data we need and from where we would collect them. Then we selected the company upon which we will make our term paper and we selected “Echotex Ltd.” as our company. The report is prepared on the extensive use of secondary data. We gathered most of our data from the following places
Interview of the employee Talking with the top level management Internet
1.4 Limitatio Limitation: n: We have tried our best to make the report perfectly. But there may be some faults in Data and information. But we try our best to give accurate information in accurate form. We couldn’t provide details data of marketing budget bu dget for shortage of information. Please check it kindly and oblige o blige us thereby.
CHAPTER – 3
Production Department: Name of the Production Manager: Asadur Manager: Asadur Rahman. Description of the Production Department:
30 lines of sewing factory with 14.4 million pcs pc s per year production capacity & most modern technology from japan is used. used. 45 tons of knitting & dyeing unit with all European machineries. Most modern printing facility with 2.7 million pcs production capacity. ETP (Effluent treatment plant) & WTP (Water treatment plant & Waster treatment plant) with 0discharg. Adequate health & safety measures are in place & proper records are maintained. Identified fire exists in English & local language adequate number of fire extinguisher, 3 stairs, early warning system & evacuation system will be placed. Factory will use ballpoint needle as a policy in order thoroughly in sample room.
Criteria of Production Systems: Systems: Any production system has four primary factors, which make up the system. Processing Time + Transportation Time + Temporary Storage Time + Inspection Time = Total Production Time. Processing time is sum total of working time of all o perations involved in manufacture of a garment. Transportation time involves the time taken to transport semi-finished or finished garments from one department to another or from one operation/machine to another. Temporary storage time is time during which the garment/bundle is idle as it waits for next operation or for completion of certain parts. Inspection time is time taken for inspecting semi-finished garments for any defects during manufacturing or inspecting fully finished garments before packing. The main aim of any production system is to achieve minimum possible total production time. This automatically reduces in-process inventory and its cost. The sub-assembly system reduces temporary storage time to zero by combining temporary storage time with transportation time..
Production Method: Unit Production System (UPS). As a mechanical system this has been in use for many years, but a major advance was made in 1983 when computers were first used to plan, control and direct the flow of work through the system.
The essential features of this type of system are: 1. The unit of production is a single garment and not bundles. 2. The garment components are automatically transported from workstation to work
station according to a pre-determined sequence. 3. The work stations are so constructed that the components are presented as close as possible to the operator's left hand in order to reduce the amount of o f movement required to grasp and position and component to be sewn.
The operational principles are as follows: All the components for one garment are loaded into a carrier ca rrier at a workstation specially designed for this purpose. The carrier itself is divided into sections, with each section having a quick-release clamp, which prevents the components from falling out during movement through the system. When a batch of garments has been loaded into carriers they are fed past a mechanical or electronic device, which records the number of the carrier and addresses it to its first destination. Some of the more intelligent systems address the carriers with all the destinations they will have to pass through to completion. The loaded carriers are then fed onto the main powered line, which continually circulates between the rows of machines. This main, or head, line is connected conn ected to each workstation by junctions, which open automatically if the work on a carrier is addressed to that particular station. The carrier is directed to the left side of the operator and waits its turn along with the other carriers in the station. When the operator has completed work on one carrier, a push button at the side of the sewing machine is pressed and this actuates a mechanism, which transports the carrier back to the main line. As one carrier leaves the station, another is automatically fed in to take its place. When the carrier leaves the station it is recorded on the data collection system, and then addressed to its next destination. Unit Production System requires substantial investments, which are not always justified by conventional payback calculations. Apart from the measurable tangible benefits, UPS also have many intangible benefits such as a more orderly and controlled flow of work, and the ability via the control con trol computer of simulating the production situation some time in advance. These intangibles are difficult to measure, but in themselves make a very positive contribution to the overall viability of the unit. All things considered, unit production systems have major ad vantages over all the others manual and the mechanical systems used for the mass production of clothing. Most importantly, they provide a clothing factory with the capability to respond quickly to any changes, which might occur. In the fast moving fashion business, this is essential. Advantages:
1. Bundle handling completely eliminated. 2. The time involved in the pick-up and disposal is reduced to minimum. 3. Output is automatically recorded, eliminates the operator to register the work. 4. The computerized systems automatically balance the work between stations.
5. Up to 40 styles can be produced simultaneously on one system.
Some pictures of the Production Department:
Business Processes and Flow of Operations:
Garment manufacturing is a pure make to order (MTO) production scenario unless production houses have their private labels. Typical business processes in this industry include Style Development, Sampling, Customer Order Management, Fabric & Trims Procurement, Inventory Management, Production Planning, Material and Factory Capacity Planning, Sub-contracting in overload scenarios, Raw Material Distribution between warehouses, Production, Finishing& Packing, Shipments, and other non engineering processes
Flow of operations in garments manufacturing: Style development
Sample making & approval from buyer
Salesman sample for market testing
Bidding & negotiation for capacities
Customer order & final style approval
Fabric testing & approval
Pre-production samples approval
Garment Inline & final inspection
Shipping & invoicing
Tire- 1 (All inspection is make on production department.) 1) Things of feeling pride:
Main things of feeling pride are 0% defect de fect in manufacturing process because production department use Unit production system & 2 line inspection & getting help from the Industrial Engineering department (IE). Provide quality product according to the buyer’s requirements.
2) Dependency for efficient functioning:
For efficient functioning production department mostly depends on the Industrial Engineering department & Information Technology department where Enterprise Resource Planning (ERP) is included. Yes, I feel production department needs more & accurate information from the merchandising department & HRM department. Merchandising department receives the order & they communicate with the buyers to know their demands about the design, cost, time & other things. If merchandising department provides information timely then production department will be able to produce the as per requirements. Human resource department (HRM) engaging into managing people in the factory. Absenteeism, grievance or vacancy hampering the production. Production department requires some necessary steps from the HRM department. These are as follows: a) Required Required number of skilled skilled worker worker must be provided provided by the the HRM departmen department. t. b) Absenteeism Absenteeism,, grievance grievance must be removed removed through motivat motivational ional activit activity. y. c) Interaction Interactionss among among all all the departments departments must be sound. sound.
3) Reas Reasons ons of doing doing bett better er prod producti uction: on: The reasons for doing better production & its effect are described by the Fishbone diagram:
Skilled
ERP system Most advanced equipment. AQL maintain Quality production
Quality materials
EU code of conduct
ETP & WTP
Effective & efficient mgt.
4) Reasons Reasons for hamp hamperi ering ng produ productio ction: n: a) Power problem: problem: Shortage of electricity in Bangladesh is a common problem. Echotex Ltd. uses own power capacity through generator. If this machine is going out-of-order then whole production produc tion system become collapsed. For that reason if shipment becomes cancelled owners will count a large amount of o f compensation & the business image comes into the threat. b) Unskilled Labor: Main features of unskilled labor is Go-slow. When a labor expenses more time in producing an unit of product then cost of production per unit becomes higher. c) Labor Unrest: Labor unrest also hampers the production system largely. Now-a-days labor unrest is a common picture in this sector. Management should take various motivational incentives to reduce it. d) Lack of co-ordination: Co-ordination between the workers & management hamper production. e) Train Training ing Facili Facility: ty: Proper training facility is needed to increase the productivity of the workers. Technology has been changed rapidly. To get efficient labor training facility must be provided by authorities.
Recommendation: Echotex Ltd uses unit production system. The choice of best apparel production produc tion system will depend on the product and policies of the company and on the capacities of manpower. One of the aims of any production system is to make total production time as minimum as possible. This automatically reduces inventory cost to a minimum. The unit production system is good for this garment but it may use section production system. Where style changes are frequent and lot sizes small, it may be advantageous to use skilled labour that can make whole garment and use one of the whole garment system. As the lot size increases it is advisable to use section production system. Assembly system is superior to the progressive bundle system as it takes less time in production.
Industriall Engineering Industria Name of the cheap industrial engineer: Eng. Noman Rezwan Rex Introduction of the Industrial Engineering:
(Often now supplemented as "Industrial & Systems Engineering" or "Industrial & Operations Engineering") is a branch of engineering dealing with optimizing complex processes or systems. It is concerned with the development, improvement, implementation and evaluation of integrated systems of people, money, knowledge, information, equipment, energy, materials or processes. It also deals with designing n ew product prototypes more efficiently. Industrial engineering draws upon the principles and methods of engineering analysis and synthesis, as well as the mathematical, physical and social sciences together with the principles and methods of engineering design to specify, predict, and evaluate the results to be obtained from such systems or processes. Its underlying concepts overlap considerably with certain business-oriented disciplines such as Operations Management, but the engineering side tends to greater emphasize extensive mathematical proficiency and utilization of quantitative methods. Depending on the sub-speciality involved, industrial engineering may also be known as operations management, management science, science, operations research, research, systems engineering, engineering, or manufacturing or manufacturing engineering, engineering, usually depending on the viewpoint or motives of the user. Recruiters or educational establishments use the names to differentiate themselves from others. In health care, industrial engineers are more commonly known as health management engineers or health systems engineers. Examples of where industrial engineering might be used include designing an assembly workstation, strategizing for various operational logistics, consulting as an efficiency expert, developing a new financial algorithm or loan system for a bank, streamlining operation and emergency room location or usage in a hospital, planning complex distribution schemes for materials or products (referred to as Supply Chain Management), Management), and shortening lines (or queues (or queues)) at a bank, hospital, or a theme park. Industrial engineers typically use computer simulation (especially discrete event simulation), simulation), along with extensive mathematical tools and modeling and computational methods for system analysis, evaluation, and optimization
Figure: Industrial Engineering
Advantages of the Industrial Engineering department:
Production department get proper suggestion in designing the production layout. It helps to reduces the lead time Co-ordination between the department helps to make a quality product. IE department helps to maintain a strong supply chain management.
Tire- 2 (All inspection is make on Industrial Engineering department.)
1) Thi Things ngs of of feelin feeling g pride pride:: Setting the accurate production timing & providing proper layout for production department & helping in reducing lead time in making one unit of product Industrial engineering department feeling pride. Production department is the core of a garments & IE department works for that department.
2) Depe Dependen ndency cy for efficie efficient nt function functioning: ing: IE department mostly depends on the merchandising department & production department for efficient functioning. Because IE department design the work of the production department. Necessary information is flowing from this department. If the Information is not provided properly IE department can’t function well.
3) Reas Reasons ons for doing doing better better functio functioning ning:: Industrial Engineering department needs to function well in the factory because this department is the core of the production produc tion department & it links with the other department. Reasons for doing better if IE department is given below by fishbone diagram:
ERP Skilled manpower
computerized No disturbance in the production
Quality product & high
productivity
Quality material
Develop human capability
Recommen Reco mmendatio dation n: In Bangladesh there are only 2% garments who uses this industrial enfineering technology’s facility. Echotex Ltd. maintain IE department. By using IE producers increase productivity through accurate timing proper machine layout & controlling proper work design. So every garments should established this department.
Information Informatio n Technology Department Head of the IT department: MR department: MR – Q - Matin Ent erpris Enterp risee resourc reso urcee plannin plan ning g (ERP ): is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment.
An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network . The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity.
Figure: Concept of ERP system
Components of ERP: •
•
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Transactional Backbone Financials o Distribution o Human Resources o Product lifecycle management o Advanced Applications Customer Relationship Management (CRM) o Supply chain management o Purchasing Manufacturing Distribution Warehouse Management System o Management Portal/Dashboard Decision Support System o
These modules can exist in a system or utilized in an ad-hoc fashion.
Enterprise resource Planning in Echotex Ltd: Echotex Ltd taking Enterprise Resource Planning P lanning System by spending Tk2crore from a Pakistani company. Name of the ERP provider: Algorithm consultants private limited. Price of the ERP: Tk2Crore. Implementation Time: 2 years
Working process of ERP:
Figure: Algorithm of ERP
How can ERP improve a company’s business performance: ERP’s best hope for demonstrating value is as a sort of battering ram for improving the way your company takes a customer order and processes it into an invoice and revenue— otherwise known as the order fulfillment process. That is why ERP is often referred to as back-office software. It doesn’t handle the up-front selling process (although most ERP vendors have developed CRM software or acquired pure-play CRM providers that can do this); rather, ERP takes a customer order and provides a software road map for automating the different steps along the path to fulfilling it. When a customer service representative enters a customer order into an ERP system, he has all the information necessary to complete the order (the customer’s credit rating and order history from the finance module, the company’s inventory levels from the warehouse module and the shipping dock’s trucking schedule from the logistics module, for example).
People in these different departments all see the same information and can update it. When one department finishes with the order o rder it is automatically routed via the ERP system to the next department. To find out where the order is at any point, you need only log in to the ERP system and track it down. With luck, the order process moves like a bolt of lightning through the organization, and customers get their orders faster and with fewer errors than before. ERP can apply that same magic to the other major business processes, such as employee benefits or financial reporting.
Commercial applications applications:: Manufacturing : Manufacturing : Engineering, bills of material, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow Supply chain management : Order to cash, cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commission calculation Financ Fin ancial ialss : General ledger, cash management, accounts payable, accounts receivable, fixed assets Project management : Costing, billing, time and expense, performance units, u nits, activity management Human Huma n resou resources rces : Human resources, payroll, training, time and attendance, rostering, benefits Customer relationship management : Sales and marketing, commissions, service, customer contact, call-center support Data services:
Various "self-service" interfaces for customers, suppliers and/or employees Access control : Management of user privileges for various processes
Figure: Benefits of implementing of ERP
Advantages: In the absence of an ERP system, a large manufacturer may find itself with many software applications that cannot communicate or interface effectively with one another. Tasks that need to interface with one another may involve: •
•
• • • • •
•
ERP systems connect the necessary software in order for accurate forecasting to be done. This allows inventory levels to be kept at maximum efficiency and the company to be more profitable. Integration among different functional areas to ensure proper c ommunication, productivity and efficiency Design engineering (how to best make the product) Order tracking, from acceptance through fulfillment The revenue cycle, from invoice through cash receipt Managing inter-dependencies of complex processes bill of materials Tracking the three-way match between purchase between purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced) The accounting for all of these tasks: tracking the revenue, cost and profit and profit at a granular level.
ERP Systems centralize the data in one place. Benefits of this include: •
• •
•
• •
Eliminates the problem of synchronizing changes between multiple systems consolidation of finance, marketing and sales, human resource, and manufacturing applications Permits control of business processes that cross functional boundaries Provides top-down view of the enterprise (no "islands of information"), real time information is available to management anywhere, anytime to make proper decisions. Reduces the risk of loss of sensitive data by consolidating multiple permissions and security models into a single structure. Shorten production lead time and delivery time Facilitating business learning, empowering, and building common visions
Some security features are included within an ERP system to protect ag ainst both outsider crime, such as industrial espionage, and insider crime, such as embezzlement. embezzlement. A data-tampering scenario, for example, might involve a disgruntled employee intentionally modifying prices to below-the-breakeven point in order to attempt to interfere with the company's profit or other sabotage. ERP systems typically provide functionality for implementing internal controls to prevent actions of this kind. ERP vendors are also moving toward better integration with other kinds of information security tools.[23]
Tire- 3 (All inspection is make on Enterprise resource planning system which is including in the IT department.)
1) Things of feeling pride: pride : It reduces lead time of the production & make it simple so that productivity can increase. 2) Depende Dependency ncy for for effic efficient ient funct functioni ioning: ng:
For efficient functioning ERP needs information from the merchandising department &production department because it is a software & it designs the layout of the production according to the production system. 3) Reasons Reasons for bette betterr doing doing Funct Functioni ioning: ng: This is explained by the fishbone diagram.
Modern computer based Trained person
Software based
High productivity Workable
Quality materials
Top skilled
Chap Ch aptter- 4
Conclusion: Now-a-day every garments are becoming more & more competitive & world garments market is becoming more & more harder. Every company must be ready for any business b usiness threat & always implement various strategies through new technology & resources. In the time of economic recession business holder takes various steps so that they can survive in that situation. Companies can cut costs & maintain strong relationship among the departments & making quality product by improving processes p rocesses & increasing efficiency. Finally there are some suggestions to exist in any situation. 1. Lower Material Costs:
(1) Improve material management (2) Consolidate purchasing to negotiate better pricing (3) Manage sourcing price negotiation process better to lower costs (4) Work collaboratively with customers and suppliers to forecast demand and plan production and purchasing to reduce total supply chain material costs (5) Use material bar codes to reduce material handling costs 2. Lower Production Costs:
(1) Improve worker efficiency with better machines (2) Increase industrial engineering, use time and motion studies to improve worker productivity (3) Plan production better to maximize efficiency e fficiency and reduce labor and air freight costs (4) Adjust production plans in real time based on actual production performance (5) Allocate workers more efficiently based on each individual's skill sets to reduce total labor costs 3. Manage finances better (1) Reduce credit exposure (2) Track utilization of LCs and bank facilities to minimize bank charges (3) Manage accounts receivable and payable to reduce borrowing
Adding Value:
When a supplier adds additional value for customers it can increase prices and volume. 1. Provide design and development services (1) Create designs from customers' concept diagrams (2) Work with factories and material suppliers to develop co lors and materials (3) Manage the collaborative product development process with the customer, factories, and material suppliers 2. Give customers better insight into their supply chain (1) Give customers full visibility into the product development process (2) Give customers visibility into material purchasing and fulfillment and garment production and delivery 3. Help customers reduce supply and distribution chain costs (1) Implement VMI (Vendor Managed Inventory) to cut supply supp ly chain inventory (2) Implement collaborative forecasting and material purchasing to help material manufacturers forecast demand and cut costs and prices (3) Bar code cartons and provide customer with ASNs (Advance Ship Notices) by EDI or other electronic means to help customer reduce inventory handling costs (4) Improve flexibility and reduce lead times to customer can react to late changes in sales forecasts
Referrence: Anisur Rab Choudhury Financial Controller of the Echo sourcing Ltd. Zinnah Accountants of Echo sourcing Ltd. www.wikipedia.com Operations management (8th Edition) Author Krajewski Ritzman & Malhotra Newspaper The Daily Star 7th June,2010 Magazine The Garments Today Published by the BKMEA
