SUMMER INTERNSHIP REPORT
A study on the working of an Export House Gokaldas Exports Ltd.
Name - Aviral Raman Mishra Department – Marketing & Merchandising Mentor - Ms. Victoria Course – Master of Fashion Management (MFM) Institute – National Institute of Fashion Technology, Gandhinagar 1
Gokaldas Exports Ltd.
Head office Gokaldas Exports Ltd . No 70, Pb No 2717, Mission Road, Bangalore – 560027
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Table of contents 1. Objective of the study.……………………………………….……………. 4 2. Methodology .…………..…………………………………….…………… 4 3. Executive Summary….……………………………………….…………… 4 4. About the company…………………………………………….…………...5 5. Awards and accolades……..…...…..…………...............................................9 6. Product Range ………………………………………………………….......10 7. Major buyers/ customers………………...…………......................................12 8. Department Study……..…………………………………………………....14 9. Process- Gokaldas Exports...……………………………………………….42 10. Arvind Brands…………………………………………………………….50 11. The Lean Initiative………………………………………………………..53 12. Gokaldas Exports Factories……………………………………………….55 13. A Visit to DMS factory……………………………………………………62 14. Garment wash …..………………………………………………………...75 15. The Key Learnings………...………………………………………………83 16. Conclusion…………………………………...……………………………84
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Objective of the study 1. To understand the working of an export house. 2. To understand the roles & responsibilities of a merchandiser in an export house 3. To get a clear understanding of the roles & responsibilities of different departments in an export house. 4. To understand the standard operating procedures (SOP‟s) for merchandising in an export house. 5. To understand the process and procedure of an export order. 6. Get knowledge about the different documents prepared and used in an export house.
Methodology The research carried out for this report is Exploratory in nature, in which the main objective was to get first-hand information on the working of an export house & to understand the roles & responsibilities of merchandiser in an export house. The primary information was collected through informal and unstructured interviews and various discussions with numerous people at different positions within & outside the organization. For secondary information company manuals, internet, journals and published books were reviewed & referred.
Executive Summary This report is an account of first-hand experience gained in a company having a reputed stand in the international market and policy of keeping itself updated with the changing times. This report mainly deals in the application of theoretical knowledge into a practical experience. The report attempts to present my experience in Gokaldas Exports Ltd.; India‟s premier export house. It is a privilege to be a part of such an esteemed organization and get the first hand knowledge of various departments under various heads. It covers the basic structure of an export house and its working. It also includes the various formats & techniques that are used to maintain the records. Overall, this report covers the individual study of each department & the entire procedures that a garment undergoes. 4
.Company
Gokaldas Exports was founded by the late Jhamandas Hinduja in Bangalore in 1979. Hinduja had moved to Bangalore from Pakistan prior to the 1947 partition of India and established a business that manufactured silk scarves and stoles. On a trip to Copenhagen in 1971, he had his flash of inspiration that started his success story. One of his business contacts asked him to copy two shirts, a request, it turned out that was incredibly fortuitous as the market for silk scarves was increasingly saturated. Hinduja was in need of a new business model and shirts appeared to be the way forward. said Hinduja‟s third son, Dinesh, who joined Gokaldas at its founding and would go on to run the company with his brothers, Madanlal and Rajendra. Manufacturing conditions in the early years were rudimentary. “I entered the industry in 1979, with $5,000 (Rs 50,000 then) and 40 leg machines in a 1,000 square foot rented space,” Dinesh Hinduja explained. “We worked in shifts, making garments in the morning and packing them towards the evening in the same area.” The company targeted export markets – primarily the United States and Europe – and began to expand through partnership arrangements, the most
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conducive approach to growth in the regulatory environment of the time, which favored smallscale industry. In 1981-1982, the Apparel Export Promotion Council of India‟s Ministry of Textiles awarded Gokaldas its “Top Exporter Award,” one of dozens such accolades the company would receive in coming years. As volume grew, technology was introduced, starting with an HCL Workhorse, India‟s first desktop computer. The screen glowed green; it had a fiveinch floppy and a heavy putty-grey keyboard. Gokaldas factories were fully integrated, meaning they also made labels, tags, elastics, cords, cartons and packing materials – everything needed for any garment produced. The 70 or 80 manual patternmakers – once a source of numerous problems – had been replaced by five to six CAD systems. Huge industrial washing machines churned denim garments to give them the look of the hour – stonewashed, acid-washed, bleached – while other garments were manually spray painted, sand-blasted or laser-engraved. Massive multi-head embroidery machines emblazoned shirts and jackets with appliqués, badges, and embroidery. Gokaldas was able to provide its clients with “any kind of garment right from ultra-formal to ultra-casual across men‟s, women‟s and children‟s wear.” Eventually, it specialized in outerwear, like coats and jackets; active wear, like warm-ups and swimsuits; bottoms, like trousers and shorts; and casual wear, including shirts, blouses and dresses. For the past 30 years, clients across the globe have placed confidence in Gokaldas Exports. They trust the company to deliver to their exacting specifications, to match and even surpass extremely high standards of quality and to meet the tight deadlines necessary in the world of garment manufacture. Today, Gokaldas Exports is one of the largest manufacturers in India and amongst the largest internationally. Retaining strong family values and ethics, it has grown to be one of the world‟s best known and reliable manufacturers of readymade garments. Headquartered in Bangalore, Gokaldas Exports operates out of more than 30 factories located in and around Bangalore, Chennai, Hyderabad, Mysore and Tumkur. The factories are dedicated by buyers and by products, specializing in creating Outerwear, Blazers and Pants (Formal and Casuals), Shorts, Shirts, Blouses, Denim Wear, Swim Wear, Active and Sports Wear. Keeping pace with the requirements of famous labels in 39 countries.
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Product strengths - outerwear, bottoms, sportswear, formal suits, trousers, skirts, and denim wear across all genders.
Annual turnover is $200 million.
Global customer base, covering USA, Europe, Latin America, Middle East and India, servicing almost all major brands. Gokaldas has four decades of partnering the world‟s most trusted fashion labels. They have lead the readymade Indian garment industry, year after year, earning customer loyalty, winning industry awards and growing reputation for reliability. They have oriented themselves to fashion trends and customer needs, investing in the latest technology, relentlessly training the high skilled workforce and setting the highest standards for themselves.
Vision “To be a globally reputed apparel manufacturer, evoking distinctive recognition for Product, Performance, Processes and People.”
Mission “Achieve profitable growth through Innovation, Quality, Consistency and Commitment.”
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Board of Directors
Shri Richard B Saldanha
Shri Gautam Chakravarti
Chairman
Director & CEO
Shri Mathew Cyriac
Shri Arun K Thiagarajan
Director
Independent Director
Shri J H Mehta
Shri Yashwant Shankarrao
Independent Director
Patil Thorat Independent Director
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Awards and Accolades Gokaldas Exports has won the highest number of awards in Asia since 1980. The company has also won all the top export awards amongst all Indian garment manufacturers.
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Product range Gokaldas has the capability to produce a wide product range; among these are:
Formal suits
Casual shirts
Formal shirts
Casual trousers, shorts
Outerwear jackets
Coats, Parkas, Rainwear
Ladies blouse, Skirts
Dresses
Sports wear
Knits
Denim wear
Embroidered garments
Tie- dyed garments
Sleepwear
Children‟s wear
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Major Buyers/ Customers
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Departments at Gokaldas Exports Sourcing :- Fabric & Trims
Sampling
Design / Product Development
CAD / Pattern
Marketing & Merchandising
Industrial Engineering Department (IED)
Export Documentation & Logistics
Production Planning & Control (PPC)
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1. Sourcing The sourcing department acts as a service department to Gokaldas Exports and is divided into two parts. One takes care of only the fabrics while the other works on accessories and trims. Sourcing is identifying and procuring of raw materials with right quality, right quantity, right source, sharp and competitive prices and the best lead time. There are few major components involved in the sourcing process. These are as follows:
Recieve indent from marketing
Create (PO) Purchase Order and send to the supplier (Nominated or Non- Nominated)
Recieve (PI) Proforma Invoice confirmation from supplier
Follow up
Create Advance Shipment Notice (ASN) and intimate the godown/ warehouse about the material in transit
Recieve Goods Reciept Note (GRN) on receipt of the material
Fabric sourcing: Fabric sourcing department is responsible solely for sourcing the fabrics for sampling and development as well as for bulk. The organization structure is such that they have different teams for different buyers which are further divided as sourcing for development and bulk. 15
The various outputs provided by the sourcing department are as follows: Quality Information
Lead Times (regular quality)
Lap dip
5 to 12 working days, (local/ imported)
Desk Loom
7 to 15 working days, (local/ imported)
Strike off (table/ rotary)
10 to 15 working days, (local/ imported)
Any special quality greige
2 to 3 weeks
Sample Yardages
Lead Times
Solid
3 to 4 weeks
Prints/ Yarn Dyed
4 to 5 weeks
Any special quality greige
2 to 3 weeks
Bulk Fabric
Lead Times
Solids (regular quality)
45 to 50 days
Prints
50 to 55 days
Yarn Dyed
55 to 65 days
Any special quality greige
4 to 5 weeks
One more important function of the sourcing department is to provide important information to the merchants and the marketing department. For sampling and development, the sourcing department provides with the pricing, quality information and any special requirements such as alternate sources, different finishes, etc. of the fabrics to be sourced. For bulk order processing, they provide information regarding the delivery date, TNA and FOB (different for solid, yarn dyed, etc.) Trims and accessories sourcing: The trims and accessories sourcing department is divided buyer wise as well. Further, it is divided trims/ accessory wise. For example, a particular team comprising of 2 to 3 people are responsible only for sourcing buttons and another team is responsible for sourcing zippers, etc. Similar to the fabric sourcing department, for trims also there are nominated and un-nominated suppliers. When an indent is received from marketing, the sourcing merchant first contacts the Inventory Allocation Department (IAD) to check if the trims
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requested by the merchandiser are already available in stock. If not, the sourcing merchant places the order with the suppliers. If IAD has stock, then only balance trims (if any) are ordered for. For different materials from different suppliers; imported or local; there are different payment and delivery terms. It is the sourcing merchant‟s responsibility to get the most suitable term with the supplier and continuously follow up for the same.
2. Sampling
The sampling department is one of the most important departments and it plays a vital role in the uplifting of a unit. The dedicated sampling unit includes machinery for knits and wovens plus on site embroidery. Sampling department directly coordinates with the merchandising and the production department. Sampling is done to see how the product will look like when produced in bulk and to check whether there is any discrepancies in the pattern and the samples are made according to the buyer‟s specification. Sampling checks the construction of the garment and the production feasibility and friendliness of the style. The sampling department operators are highly skilled and are capable of tailoring a complete garment. Two main functions of the sampling department are: a. To cater the buyer b. New development
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Different types of samples are made at the sampling department based on the demands and specifications of the buyer. These are:
Proto sample
This is the first sample made for the buyer. At this stage, the main aim is to impress and attract the buyer and show them the capabilities of the company. This sample is applicable for the styles which are made without any prior presentation of samples to buyer.
Fit sample
Once the Prototype sample has been approved, the buyer is provided with fit sample for approval. This sample is prepared using the actual or a similar quality fabric, as mentioned in the Tech pack, but could be in any colour and available trims.
Size Set
Once the fit sample is approved, based on the pattern of the approved sample the grading for other sizes are done and pattern for all the sizes are made. Then the samples for all the other sizes are made to check the fit and workmanship.
Pre- Production sample
On approval of the fit sample or size set sample, pre-production samples are sent to customer, which is the actual in all aspect of trims, folding and packing.
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Apart from these, two more types of samples are made at the factory itself to acquaint with the styling, construction, wash, etc. of the style. These are:
Production Size Set
At times, at the buyer‟s request, size set samples are made at the factory as well before proceeding for bulk.
TOP (Top of Production) sample
Sometimes buyer wants sample that production has been started. It includes all the trims, package sticker, and price ticket of a related garment. The sampling unit (R&D III) is divided buyer wise and each buyer has a designated technician and QC. After the samples are made, a review sheet is maintained for each style for any further alterations. Sampling department workflow Activity
Team involved
Receive indent by mail, print indent, update information on sampling Data software and hand over indent copy to respective sampling coordinator
entry
operator/ Sampling coordinator
Accept indent, verify information provided on indent
Sample coordinator
If non wash program; coordinate with R&D pattern coordinator and get Sample pattern pulled from pattern department or pattern store with all necessary coordinator/ R&D documents required for sample making (Documents- techpack, BOM, pattern coordinator PAM comment, sample print/ embroidery/ artwork or strike off) If wash program; check shrinkage received from marketing on indent and Sample update CAD to release shrinkage added pattern
coordinator/
Plot
coordinator
at
CAD department Coordinate with R&D pattern coordinator and get shrinkage added pattern Sample
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pulled from pattern department along with all necessary documents coordinator/ R&D required for sample making (Documents- techpack, BOM, PAM comment, pattern coordinator sample print/ embroidery/ artwork or strike off) Prepare style file
Sample coordinator
Coordinate with material collector and get the package collected from Sample merchandising. Package contains BOM copy, approved fabric and thread coordinator/ card. Trims for sampling and finishing
Material collector
Verify sampling package and make sure all required styling information Sample and trims available in the package to proceed with sample making
coordinator
If package or information received from marketing team is deficient; Sample instruct data entry operator to reject sample indent and inform coordinator/ merchandiser to release fresh indent for sample making
Material collector/ Merchandiser
Review BOM and explain fabric details to cutter and hand over fabric Sample package for cutting
coordinator/ Cutter
Collect cutting package and get required marking done by cutter/ Sample supervisor and dispatch cut panel along with the pattern for printing/ coordinator/ embroidery or any special embellishment as per style requirement
Supervisor/ Embroidery
or
Printing unit Collect panel back from embroidery/ printing/ embellishment and get the Sample panel checked by supervisor/ QA or merchandiser for correctness of coordinator/ design/ color and position before completing the sewing package
QA/
Supervisor/ Merchandiser/ Embroidery
or
Printing unit Hand over consolidated package to line supervisor (Pattern, Cutting, Sample Trims, Original sample and Style file)
coordinator/ Supervisor
Line supervisor to ensure QA/ Technician/ IE is called to clarify all style Floor in charge/
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details before loading of style
Supervisor/
QA/
Technician/ IE Style to be loaded on line once all details are clear to the supervisor and Floor in charge/ tailor
Supervisor/ Tailor
QA/ IE to audit style on line to ensure all construction detail as per QA/ IE customer requirement and PAM comment is followed Garment line out- Inspect the sample for correctness as per customer QA/
Finishing
requirement and PAM comment, sample found acceptable ; coordinate team with finishing team and get the pre wash finishing done Collect sample and dispatch for wash along with wash standard
Sample coordinator/ Washing unit
Follow up and get washed garment back from washing unit and hand over Sample the garment to QA
coordinator/ Washing unit/ QA
Coordinate with finishing team and arrange for final finishing of the QA/ garment
Finishing
team
Review garment and ensure sample meets internal and external customer QA needs as specified by buyer/ IED Organize technician review and post review. Organize packing as per the QA/
Technician/
standard and handover package to R&D coordinator as per review sheet Sample and original sample
coordinator
Dispatch sample with DC( Delivery Challan) to merchandiser along with QA/ Merchandiser original sample, review sheet and left over trims and accessories Update sample dispatch information to R&D data entry operator and the Sample operator to update entry information into sampling software
coordinator/
Data
entry operator Return left over fabric with DC to fabric stores through the fabric collector
Sample coordinator/ Fabric collector
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Return pattern package to pattern stores/ pattern department
Sample coordinator
Major functions of the sampling department
Planning and execution of correct samples on time
Ensuring the sample quality, construction, measurement is as per the customer requirement
Looking after the sample fit and overall presentation of the sample
3. Design/ product development This is one of the service/ support departments of the company. This department is not buyer specific and works for all the buyers that the company caters to. The major role of this department is to get business for the company. The design team works in two manners: Firstly, as per the requirements and specifications of buyer and secondly, for company‟s own collection. Showrooms are there for meeting as well as presentation for new development/ line adoption to the buyers. Functions of the design team:
Product Development
Internal Designing
Own Design Line (GE Collection)
Inspirational
Showroom Management
External Designing
Techpack
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Internal Designing The design team keeps a trained eye on the market, identifying and forecasting emerging trends in styling, fabrication, color, embellishments, shapes/ silhouettes and surface treatments. This is done with the help of many sources like fashion forecasting websites, magazines, trade journals, buyer trends, etc. The company‟s designers work on two core seasons per year as well as many “Fast Track” collections. These collections help in the growth and development of the business as they showcase the company‟s capabilities to old as well as prospective new buyers. Mock or samples will be prepared for selection If selected, meeting samples will be prepared Costing and Negotiations Fit samples Grading Order Confirmation External Designing This department serves value to the buyers/ customers who do not have their own fully equipped design studios. The product development department can provide such buyers with mocks or samples which may translate into bulk production orders.
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Buyer inputs via the buying house/ designers/ agency Development of Lookboard Mock or samples will be prepared for selection If selected, meeting samples will be prepared Costing and Negotiations Fit samples
Grading Order Confirmation
Show Room/ Style Vault/ Design Studio Show rooms/ style vaults are the places where the new products developed and the bulk samples of already delivered orders are displayed. Show room management is the technique which has to be implemented to ensure to get a life time customer through the right presentation in the show room. Show room is the place where the potentiality is engraved; capability is displayed to ensure to get the life time customer. A platform to gain or lose a customer during a presentation. A place to build up confidence to sell the right product to the right customer and to exhibit the latest collections of sample products which attract the customer.
Functions of the design team in show room management:
Thematic display of new products developed for buyer and season presentation
Studio V.M/ display design and execution 24
Fabric and mock display as per season/ buyer brief
Showroom management and personal grooming: Certain set of commandments related to personal grooming and code of conduct are to be followed when meeting a buyer at the showrooms so as to attract new business to the company. Some of these are:
Continuous communication and correspondence with the buyer
Keeping all the materials/ styles/ information ready at hand in case of urgent requirement
Drawing up a proper agenda for each and everything
Special care to be taken for personal hygiene and grooming
Ensure to make the buyer aware of all the in house facilities/ capabilities/ product range
Being a good host
4. Pattern/ CAD
CAD stands for Computer Aided Design. It is one of the most important departments of the export house; acting as a “service/ support” department for merchandising and sampling. The working of these two departments highly depends upon CAD department. Without CAD it is very difficult for these departments to move ahead. The CAD department at Gokaldas is employed with skilled and specialized pattern makers, marker makers, graders, manual cutters
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and coordinators. Everyone has a defined set of tasks to be performed. The CAD department at the head office works only for sampling. In case of bulk orders, pattern to calculate the consumption of bulk orders is given by the CAD department at the head office and the actual patterns and markers are made at the respective factories itself. Major responsibilities of the CAD department are:
Planning and execution of pattern on time and as efficiently as possible
Ensure dispatch of correct TEXO (mini marker) to marketing
Ensure dispatch of correct pattern to R&D
Ensure dispatch of correct graded pattern to R&D/ factory
Software used: Gerber Technology
Accumark Version 8.5
Accunest
The CAD department at the head office is equipped with Plotter and Cutter machines. The basic two types of machines are:
Gerber plotter: This machine only plots and the cutting is done manually. Bigger patterns with greater paper lengths can be plotted on this machine.
Plotter and Cutter: Plotting as well as cutting is done on this type of machine; however markers with less patterns and smaller lengths can only be plotted on this type of machine.
Both the machines are system automated. Basic workflow of the CAD department is as follows:
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Receive techpack and indent from merchandiser
Techpack and indent reviewed by coordinator
Conduct DFM meeting (Design for Manufacturing
Pattern making on CAD
Marker Making
Grading
Plotting and Cutting
Pattern: A pattern is the parts of the garment in 2D incorporating specific style details, specific measurement, size of the garment and also marked with grain line, notch mark and dart line which is to be used to make a garment in 3D. Grading: Grading is expansion or reduction of base pattern of garment parts without changing the styling or aesthetics of the garment. TEXO marker: TEXO marker is a graphical representation of the pattern pieces placed on a lay to ensure optimum utility of fabric. Types of Marker: various types of markers are as follows. One way marker: All the parts of the garment placed in one direction is called one way marker. Normally used for fabric with napping. One garment one way: All parts of one garment placed in one direction and all the parts of the other garment placed in the other direction within the same lay is called one garment one way marker. Two way marker: Parts of one garment placed in two different directions is called two way marker.
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Four way marker: Parts of one garment placed in all four directions is called four way marker. Normally used for polywadding and non woven interlining.
5. Marketing and Merchandising Merchandising is the department which mediates marketing and production departments. Merchandisers act as mediators between the export house and the buyers. Merchandising department is responsible for the costing as well. In any case, the merchandiser is the person whose responsibility is to execute the orders perfectly as per the costing and pricing. The function of the merchandising department begins with the sourcing for the new order or the repeat order, and continues till the shipment deadline has met. They know what buyers want and what the company is able to and willing to deliver. They are responsible for timely execution of the orders. The merchandiser has become an indispensable unit in the export cycle, managing and handling not only the follow up of the orders but the entire supply chain. They carry out pre production planning with the help of the production manager so that the order gets completed in a smooth and organized manner on time. The merchandisers keep track of all the departments‟ progress with their orders. They maintain a copy of the documents from all the departments, which show the status of the orders in those departments. The merchandisers discuss the details of the tech pack with the QC‟s and pattern masters and negotiate with the buyer if there are any changes to be done. They get the samples made under their supervision. Placing order foe sampling fabric and trims is also merchandiser‟s responsibility after getting the approval for the same.
ERP is used at all stages from raising a purchase order to ordering trims and fabrics to follow ups talking about the use of ERP system in the merchandising department, all the merchandisers are given an ERP code and password which they use to access their ERP account. Even for placing an order for trims and sampling, it has to be done through the channel of ERP.
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Department Functions a. Communicating with the buyers It is one of the most important functions performed by the merchandiser. From the time of initiating the contact to making the sale, then procuring the orders, getting samples approved and following up on production, buyer contact is maintained. The buyer has to be kept at both pre and post shipment stages. It is because of his/her link with the buyer that the merchandiser is synonymous as a buyer‟s representative within the organization, and similarly to the buyer he represent his own organization. Thus the success of an export organization largely depends on the efficiency of the merchandiser‟s ability to handle and maintain buyer contact.
b. Sampling The merchandiser has to make sure all the samples are sent on time to the buyer as per their demand and requirements. It is the merchandisers‟ responsibility to arrange all the materials required for sampling and deliver to the sampling unit on time. After sending the samples, the merchandiser has to follow up with the courier department and inform the buyer regarding the details of the package so as to track the package. The merchandiser has to ensure that all the buyer comments are incorporated once the sample has been reviewed by the buyer. c. Costing The most important function of the merchandising department is to calculate the total cost of the garment. It is the job of the merchandiser to estimate the initial cost correctly and also negotiate the cost of production with buyer before receiving the final P.O. The costing should be such that it suits the buyer and also the company. Initial costing is done so as to get an idea of the likely cost to be incurred after getting the SAM of the garment, fabric consumption from CAD, fabric price and quality from sourcing, etc. Changes are made later on according to any changes in the styling, negotiations with the buyer, etc. Major costs to be considered are:
Fabric
Trims 29
Packing
Value added processes (Washing, Printing, Embroidery, any other)
Other costs (Testing, Sampling, Courier, Discounts if any)
Cost of making
A cost sheet includes:
Buyer name
Style
OC number
PO reference
Style Description
Season
Delivery Date
Quantity
SAM
Date
FOB price
Currency
Conversion Rate
Manager and Merchant name
d. Bulk sampling The merchandiser has to coordinate with the factory regarding the production size sets and the pre production samples; made at the factory. The merchandiser has to ensure the samples reach the buyer on time and follow up for the approval of the sample. e. Bulk order processing Once the orders are booked the merchandiser is required to follow-up on production. Because of the level of interface between the buyer and the merchandiser, the merchandiser is best equipped to instruct the production department about the product requirement of the buyer. The
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merchandiser is also required to keep the buyer up-to-date on the status and progress of his order through the production process through weekly updates.
f. In process inspection As the merchandisers interface with the buyer is frequent and ongoing, it therefore becomes the merchandiser‟s responsibility to ensure the product meets with the buyers quality requirement. The merchandiser is required to do random quality checks on the merchandise at various stages of production. However, at all time he has to control quality from a commercial viability angle.
g. Maintenance of files A merchandiser might be handling more than one buyers or orders at once. In order to prevent confusion and better management of work the merchandiser has to maintain separate files at each stage for different buyers. h. Mails All mails to be answered point to point and the concerned marketing manager to be in CC on the same. i. Customer complaints Ensuring that no customer complaint is missed out and try to resolve the complaints by analyzing the complaint and corrective/ preventive action to be formulated.
Departmental Objectives 1. Send complete sampling packet to sampling department immediately after the sampling indent is released. 2. Generate TNA and achieve OTP for sampling and order shipment stage. 3. Ensure all approved materials along with complete PO packet delivered on time to the factory.
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4. Clear approvals to the factory: Fabrics/ Trims Washing approval Embellishments approval Packing approval 5. Achieve customer satisfaction 6. Maintain minimum level for sort, set, sustain and safety.
Department Hierarchy
COO
General Manager
Manager
Merchandiser
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Qualities of a merchandiser A merchant must possess the following qualities for efficient and effective working :
Planning Capability: Merchandiser should be capable of planning, based on the planning the order is to be followed. If the planning is not done properly it will directly affect the delivery time of the order. Decision making: For a Merchandiser, decision making power is most important. They should think about the decision to be taken and to act in a right way. Communication Skill: The communication is very much important to promote the business activity. The merchandiser should be able to communicate well with the buyers as well as other service departments and ensure to pass the correct message for effective working. Knowledge about the field: Merchandiser should have adequate knowledge about the garments. Computer knowledge and technical knowledge to communicate with different people in the business is a must. Co-ordinate & Co-operate: Merchandiser is the person who has to continuously co-ordinate with the number of departments. To Co-ordinate with different people in the industry they should be co- operative. Monitoring ability: Merchandiser should monitor to expedite the orders. Other qualities: Education, Experience, Situational Management, Ability to Evaluate, Dedication, Knowledge of expediting procedures.
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6. Industrial Engineering This department set standard time of a product, thread consumption, line set up. It is majorly responsible for factory productivity and efficiency controlling and improvement. The IE department is majorly responsible for the calculation of the SAM (standard allowed minutes) and thread consumption. SAM calculation: SAM stands for standard allowed minutes. SAM or Standard Allowed Minute is used to measure task or work content of a garment. For the estimation of cost of making a garment SAM value plays a very important role. The SAM calculation is done at two stages: firstly for costing purposes or during the sampling stage and secondly during final production (so that all the changes made in the construction of the garment during the various sampling stages can be accommodated before calculating the SAM for bulk production stage). The SAM is calculated based on either the techpack, measurement chart or a sample garment as given by the merchant. The SAM is calculated by the technician and accordingly provided to the respective merchant.. In case the SAM is excess and the cost is going too high because of high SAM, the IE technician try and simplify the garment without changing its outer appearance. The software used for SAM calculation is Pro SMV. How SAM is calculated: Each technician has a list of operation breakdowns for basic styles of different garments; and also the machine to be used for that particular operation. Based on that, the basic SAM of a garment is calculated. Any extra operations in the garment; for example, an extra pocket, extra buttons, etc. are added separately and the final SAM of the garment is arrived at. Also while calculating SAM; an allowance for 13-15% is added for workers‟ fatigue, etc Thread Consumption: Thread consumption is the total meters of thread required to make a garment covering all the operations. A thread consumption report includes the following:
Style
Description of garment
Size
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Order quantity
Buyer
SAM
Date
Technician Name
Merchant Name
Operation Breakdown
Seam length in centimeters
Stitch type
Wastage
According to the operation and sample garment, the technician measures the seam length of each part. The frequency of the operation is checked and multiplied with the seam length measured. This is done on the basis of stitch type. A total of all the operations are taken for the particular stitch type and total consumption is arrived at (in centimeters). To arrive at the actual consumption, the total consumption is multiplied by the factor and some extra consumption and converted into meters. Factors are the already calculated machine‟s thread consumption factors per centimeter. The wastage percentage is calculated based on the order quantity and the SAM. There are prescribed wastage percentages for various order quantities, numbers of machines and the SAM.
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7. Export Documentation & Logistics The export documentation & logistics department is responsible for export related documentation, dispatching goods to ports and communicate with buyers warehouse and distribution center. The major functions of the department are as follows:
Functions
Invoicing
Shipping
Advising
Banking
Drawback
Invoicing This team is responsible for generating the invoice for various orders and making sure all the details are correctly and completely filled in the invoice. When the goods are ready, the production department issues the invoice request along with the buyer‟s P.O. and factory packing list. While making the invoice, the invoicing team checks for the following in the invoice request: Quantity, Price, Mode of Shipment, Payment Terms, Fabric/ Accessories. Maximum of the shipments are sent on FOB terms, by sea. After checking the above details, an invoice number is allotted. At Gokaldas Exports, five series of invoice numbers are used:
GI- For woven garments
GIP- For knitted garments
GE- For woven garments
GEQ- For knitted garments
SEZ- For goods manufactured at SEZ, Chennai
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For domestic, two series are used; one each for GI and GE. The packing list also has the same corresponding invoice number. All the invoices are recorded in the invoice register. The invoice register has all the details, such as truck out date, bill of lading/ AWB bill no and date, negotiation date, etc. With the invoice number on the invoice request, along with the factory packing list is forwarded to the respective logistics team, for booking the space with consolidator/airfreight forwarder. The invoice/ packing list copies are then distributed to shipping/ customs/ production/ advising/ banking. On an average, 15,000 invoices are generated per year. Shipping The department has three shipping teams and each team handles the shipments of a group of buyers, allocated to them: Team 1
Exports: Gap Inc., Mexx, O‟neill, Maverick, A&F, MGB, Marks & Spencers, Stock lot Buyers
Domestic: Adidas, Nahar Retail, Reebok, Mothercare
Re-export: Defective fabric/ accessories/ machineries, etc.
Team 2
Exports: Columbia, Levis, Dillards, Nike, Lafprom, Macy‟s, Chevignon, Carrefour, Spring Field, Pacsun, Oceanic Trading, Tesco, Haggar, YKM Turkey
Domestic: Benetton, Spykar, Reliance, Arvind, Levis, Indian Terrain, Madura Coats, Jiny Jony, Metro, Puma, Nike, ITC, Indian Rayon
Courier Shipments: All courier commercial sample shipments given by the merchandisers are sent through the nominated agents.
Team 3
Exports: Puma, Sixty S.P.A, Diesel, Preca Brummel, H&M, Oilily, Fila, El Corte Ingles, Guess
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On receipt of the invoice request and the packing list from invoicing, the shipping team sends the booking to their respective forwarder/ shipping agents. Most of the shipments are routed through Chennai/ Tuticorn port. Some are going through Mumbai port also. The invoice and packing list are then sent to the CHA (Customs House Agent; who has license to file the pre-shipment documents, arrange for custom inspection, co-ordinate with the custom house for drawback) on the day of trucking out the goods. The goods are dispatched by the shipping team in coordination with the production/ factory and the transport company. Details of the goods sent are informed to the CHA, so as to organize the custom clearance of goods and documents, and hand over to the forwarder. The original/ consignee set of documents (prepared by the advising team) are forwarded by the shipping team to the consolidators, for releasing the transport documents. Consolidator/ forwarder are the one who collects shipments from all the vendors in a particular region and arrange for shipment as per the buyer‟s instructions. Most of the buyers have their nominated freight forwarders, so the consignment is custom cleared through the CHA and handed over to the forwarders, for planning the shipments. The necessary B/L, FCR, AWB instructions are given by the shipping team to the forwarders. After this, a list of invoices is distributed to banking and advising, along with the invoice folders, for further action. The CHA collects the B/L, FCR, AWB and couriers it to the vendor. Some major buyers and their forwarders are:
Nike, Macy‟s, Mexx, Dillard, Tesco, Puma - Maersk Logistics
Nike (Asia & Middle East specific) - Schenkar Logistics via Chennai
Gap, Columbia, Spring Field, Nike (air) – Expeditors
Pacsun, Haggar, H&M, Gap/ Nike (for some shipments) – APL
Diesel – Expo Freight
A&F- JAS Forwarding
Nike (air) – Atlas Logistics/ EGL Logistics/ DHL Courier
O‟Neill – DHL Danzas
MBG/ Metro Group & Carrefour – MGH Logistics
Liz Canada – Chakiat Agencies
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Oilily – Freight Systems
Advising The main function of this department is to apply for required documents needed for custom clearance at destination, such as certificate of origin, GSP from „A‟, attestation by embassy, etc. The advising section after taking required documents such as invoices and packing lists, releases the folders to the banking section. All the countries need the certificate of origin, in original, along with invoice and packing list to clear the goods. Application is sent to the Chamber of Commerce, AEPC, and Bangalore Chamber of Commerce for the certificate of origin. GSP form „A‟ is applicable only for the goods manufactured out of locally procured raw materials. This is needed only by European customers, to avail some duty concession. (European community encourages the import from developing countries, by giving concession on import duty). Canada Customs Invoice is required only for shipments to Canada. Annexure III is applicable only for shipments to Mexico. For countries like Brazil, Turkey and Argentina; the certificate of origin has to be legalized by the respective embassies, at New Delhi. An expense of around Rs. 4,000 is incurred per document. From Nike and Puma, these charges are collected. The advising department organizes all these documents as per the requirement of each country and either hand them over to the forwarder or courier directly to the buyer/ agents. All the documents pertaining to a shipment; should match in all respects.
Banking The folders released by the advising team are received by the banking team. Documents are prepared based on the payment terms. If the payment is through L/C, the documents are negotiated through the bank after receipt of transport documents. L/C bills normally take 25 to 30 days to realize. However, nowadays, to avoid bank charges (1% to 1.5%) at both ends, many buyers have opted for different modes of payments such as open account, trade card, TT payment, documents against payment, etc.
39
For buyers like Gap, Dillards; the original documents are sent on open account to their buying offices, which is paid between 30 to 45 days from the date of shipment. For Levis, the payment comes after 35 days from the receipt date at the destination. For Tesco shipments, the payment term is 60 days from the date of shipment. For Nike, Columbia and Spring Field, the payment is through trade card platform. For Nike, there is interconnected software whereby the invoice is created automatically by picking up the details from the scan files and Nike purchase orders. The payments are realized between 25 to 30 days. For the buyer Spring Field, the payment is received 90 days after the shipment, the interest cost for 90 days is taken care at the time of costing. Some buyers buy the goods on TT terms; they pay immediately on receipt of the goods/ documents. All records and registers are maintained to monitor/ track the payment. If payment is not received on the stipulated date, reminders will be sent to the buyer/ buying house. If any discrepancy in price or any discount is sought, the matter is taken up with the merchandisers and directors, to clear the payment. For any shipment, it takes minimum 30 days to get the money and the money is blocked. As finance is required for day to day expenditure and payouts, the export bills are discounted with the bank, on interest. Other facilities like packing credit, pre shipment finance are available from the bank as well. Follow up is done with bank to get the realization advices. All the purchase/ discount advices and realization advices are passed on to the accounts department for accounting purpose.
Drawback For the GE shipments, where local raw materials are used, government reimburses certain duties paid while procuring the raw materials. Presently, the system is that customs department releases the drawback; which is followed up by the CHAs. Records for receivables and receipts are maintained.
40
Workflow of the documentation & logistics team:
41
8. Production Planning and Control (PPC) PPC controls the planning and give the guidance from fabric to shipment. The main function of the PPC is to create deadlines for each process and coordinate multiple activities. Role of PPC a. Feasibility Study: Based upon -
Type of machine
-
No. of machines
-
No. of processes involved
-
Fabric type
-
Order quantity
b. Capacity Study: Based upon -
Availability study
-
Planned hours
-
Machinery capacity
-
Expected absenteeism and turnover
-
Planned efficiency
c. Budget Planning: Based upon -
Committed delivery date
-
Order quantity
d. Line Planning: Based upon -
SAM of the style
-
Efficiency of the operator
-
Efficiency of the line
-
No. of lines in the unit
e. Unit Efficiency: Based upon -
No. of lines
-
Line efficiency
-
Production dates
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Process – Gokaldas Exports ERP (Enterprise Resource Planning) (WFX) World Fashion Exchange ERP system assumes a vital role in the day to day functioning of the organization. The ERP software used at Gokaldas Exports is WFX. It is JAVA necessary software. It attempts to integrate all the departments and functions across the company into a single computer system that can serve all those different department‟s particular needs.
ERP is the core of all the working of the company. The structure is designed in such a manner that it is needed at each and every level whether it is new development, production, purchase, purchase orders, export and import of materials, etc. The software customizes the works of different departments in such a manner that at every point when the information is needed, it can be easily extracted by this. It is an information system which organizes each and every entry of different styles being undertaken.
ERP is used at all stages from raising a purchase order to ordering trims and fabrics to follow ups of styles. For example, talking about the use of ERP in merchandising department, all the merchandisers are given an ERP code and a password which they use to access their ERP account. Even for placing an order for trims and for sampling, it has to be done through the channel of ERP. The major functions for which the software is used are:
Sample Indent Capacity booking (Buyer Block Booking) Style Creation and Techpack entry Cost Sheet entry Bill of Material Order Confirmation (destination, size, date) MRL (Materials Required List) generation
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Order Process Flow (SOP) Step
Activity
1
Merchandiser receives the order confirmation from customer through COO/ GM/ Manager
2
Checking of order against the cost sheet and revert to the buyer in case of any discrepancies
3
Giving the internal cost sheet to CFO to get it signed with profit grading (A, B, C)
4
All new orders should not be confirmed without CFO‟s signature on the cost sheet. If the cost sheet is under C grade (loss); it has to be signed by the CEO before proceeding with the order
5
Garment to be digitized enabling to browse the sketch in capacity booking and in the MRL
6
Create style in WFX and proceed with the capacity booking
7
Capacity booking to be done on the same day as order confirmation; two copies of the same duly signed by the manager/ GM/ COO/ GM- Production & Planning to be given for the CEO‟s signature
8
Prepare T&A and also the PCD follow up chart (in excel sheet) from the red file card data available in WFX
9
On the 10th day of capacity booking date, confirmed PCD should be given to GMProduction & Planning
10
Prepare OC (order confirmation) file and Order Pouch (brown pouch) for each style
11
Keep TEXO/ sewing/ embroidery/ fabric consumption chart on the left side of the OC file, MRL at the middle of the OC file and pink slip, counter copy of indent/ trim, slip, shipment advance on the right side of the OC file
12
Also keep the buyer‟s purchase order sheet, measurement chart on the left side of the order pouch, all other relevant documents pertaining to the style- quality swatch, color standard, lab dips/ desk looms/ strike offs, style approval comments, techpack, test report, etc. on the right side of the order pouch
13
Get the DFM report in place of PAM and give to R&D along with pattern/ sampling
44
indent 14
Make pattern indent, texo requisition and send it to pattern department through soft copy
15
Organize sampling materials through adhoc indent/ make sample indent and send the soft copy to R&D along with trim card attached to it
16
All items to be ordered within 1 to 3 days on receipt of the order
17
Merchant should give a complete catalogue of approved fabric qualities and colorways and all approved trims, duly signed off by marketing GM‟s prior to release of indents to sourcing department. These catalogues should have the costed price and conversion rate clearly mentioned against each item, to facilitate speedy processing of the indent
18
Items for which details are not available should be kept “awaited” in the MRL on the first day of ordering material itself
19
Get the TEXO (marker) from CAD department and consult the auditor and work out the fabric consumption, enter the same in BOM line. Consumption of trims with running length trims to be taken from CAD technicians
20
Generate MRL (after filling all BOM lines including sampling requirement and production remarks) and check the MRL thoroughly before sending it to auditor for approval
21
After sending the MRL for approval, take the print out of MRL and file it in the middle of the OC file and immediately submit the OC file, order pouch and original sample to the auditor for checking the MRL (along with the internal cost sheet duly signed by CEO)
22
Once the MRL is approved by auditor, indent is generated which is to be assigned to respective person at IAD (inventory allocation department) for regular items and to the sourcing manager for new items
23
Until catalogue is ready, marketing to give hard copies of fabric indents to IAD together with quality swatch and color standards. IAD, in turn, after checking out stocks, will send the same hard copy and attachments to concerned fabric merchant. Hard copy of the indent must have the costed price and the conversion rate clearly signed off the by COO or GM
45
24
On receipt of fabric indents, fabric merchants will take the indents to fabric managers for price negotiation and delivery confirmation and the fabric managers, in turn, will meet COO of fabric department to discuss and get his confirmation on prices and deliveries
25
COO of fabric department to define which manager is responsible for which mill as for imported fabrics, and same to be advised to all of sourcing and marketing
26
Trim merchants/ team leaders will take indents to COO of sourcing for sign off on prices and deliveries
27
Sourcing coordinator to ensure all materials are ordered within the stipulated time frame. If not ordered, reason for delay to be reported to the CEO. Also liaise with fabrics and trims teams to ensure all materials are coming in time to meet P.O. packets
28
Sourcing coordinators and merchandisers should maintain and update the walkthrough chart on a daily basis
29
Review of OC file/ order status to be done along with the manager/ GM
30
Follow up for the lab dip/ desk loom/ strike off and get it approved by the buyer at the earliest to maintain PCD
31
Send the PI to buyer and follow up for the LC
32
Make the indent for PP sampling after receiving the sampling yardage
33
Arrange lab test report for sampling and for garment (if required)
34
Make revisions in WFX if buyer makes any amends in quantity/ color/ delivery date, etc.
35
Apart from quality/ color; merchant must check the width and shrinkage of the shipment sample send by the fabric supplier, to avoid consumption variation at the time of bulk garment production
36
Check with originals and approve the in house cards received from godown
37
Two weeks before the PO packet date, final confirmation of PCD must be given again to GM- Production & Planning
38
Final approved sealer sample must be given to CAD department for sealing and to verify the TEXO to be issued to the factory is correct in all aspects. Recheck the
46
consumption with auditor, in case of any changes. PO should be released with correct consumption as per approved sealer sample 39
Issue the PO (production order) along with PO packet, after getting the approval on final sample. PO to be issued 3-5 days before PCD (35 days before delivery date) (All items to be ordered and cost sheet to be updated before issuing PO)
40
Get the factory allocation from HOD of the production department
41
Approval to be given to factory for fabric/ trims/ size set, etc.
42
Conduct pre- production meeting (PP meeting) at factory
43
Get the TCAR (Trims consumption approval report) and MCPR (Marker cut plan report) through the production coordinator and verify the actual consumption with the auditor
44
Obtain production status from factory/ from production department and update the buyer/ buying house people
45
Give the packing approval and obtain the final inspection date
46
Inform the final inspection date to buyer‟s QC well in advance in writing
47
Get the yellow slip (document for preparing shipping documents like invoice, packing list, etc.) from production coordinator and fill the details and return back the same to production coordinator with a copy of the buyer‟s purchase order sheet
48
Book the container/ space for the shipment (sea or air) through shipping department
49
Follow up for the final inspection
50
Send the shipment advice to the buyer and keep a copy in the OC file along with the pink slip
51
Provide the inspection certificate and copy of fabric test report to documentation department if required (as per LC)
52
Coordinate in the payment follow up with documentation department
47
Order pouches to be filled with: a. Order sheets b. Color swatches c. Specification sheet d. Strike off approvals e. Laboratory test reports f. Azo reports g. Accessories approvals h. Style and fit approval details i. Amendments to order; if any j. Inspection reports k. Sample feedback with details of actual fabric width, shrinkage found, pattern corrections and any changes from spec to sample OC file should contain: a. MRL form b. TEXO marker c. Both internal and external cost sheet d. Actual consumption slip e. PAM/ DFM report PO packet checklist: a. Fabric in house b. Trims in house c. Packaging trims in house (within one week of PO packet issue) d. Buyer techpack e. QA file f. GPT pass report g. Approved trim card h. Approved fabric card i. PO patch sample 48
j. Wash standard k. Print standard l. Embroidery standard m. Graded pattern n. Approved measurement chart with zipper grading o. Line design p. TEXO q. Buyer PO copy r. GE PO copy s. DFM report
Snapshot of the ERP software log in page
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ARVIND BRANDS
Arvind Limited (formerly Arvind Mills) is a textle manufacturer and the flagship company of the Lalbhai Group. Its headquarters is in Ahmedabad, Gujarat, India. It manufactures cotton shirting, denim, knits and bottomweights (Khakis) fabrics. It is India's largest denim manufacturer [3] apart from being world‟s fourth-largest producer and exporter of denim Today, under the Banner of “Arvind Brands” it retails its own brands like Flying Machine, Newport and Excalibur and licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger, through its nationwide retail network. Arvind also runs a value retail chain, Megamart, which stocks company brands.
Key facts Founded: 1995 Founders: Sanjay Lalbhai They are: A leading domestic specialty retailer offering clothing, accessories and personal care products for men, women, children. Brands: Arvind Brands (owned)
Flying Machine Newport Ruf & Tuf Excalibur 50
Arvind Brands (licensed)
Arrow Lee Wrangler Gant U.S.A. EdHardy Izod Cherokee Mossimo U.S. Polo Assn. Billabong Nautica Energie
Headquarters: Arvind Brands – Bangalore, India
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Arvind Brands at Gokaldas Exports Arvind Brands is one of the oldest and biggest buyers of Gokaldas Exports. They are a valued customer for their brands; Arrow, Nautica, Bay Island, Flying Machine etc.
Arvind Brand Procedures with Gokaldas Exports
Query – Arvind Brands sends request for Proto Development to Gokaldas Exports. Suppliers - Works with only nominated suppliers of fabrics. Products Frequented – Denims, Shirts, Jackets. Order Quantity – Approx 4.5lac pcs a year Price – Ranges from Average to High as per the Brand Payment Terms - Works on L.C. of 90 Days
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The Lean initiative Gokaldas Exports was a family-owned business founded in 1979 that had grown into India‟s largest apparel exporter by the mid 2000s.2 Its founder, Jhamandas H. Hinduja, had bequeathed control of the company to three sons, each of whom brought in his own son. By the end of 2004, Gokaldas had 258 production lines scattered in and around the southern India city of Bangalore. The company was valued at approximately $215 million and exported nearly 90 percent of its production. However, to maintain its already slim margins in an increasingly competitive environment, Gokaldas needed to become more efficient. Company leaders hoped to improve profits by 10-15 percent without adding resources and Gaurav Hinduja, COO of the sportswear division and a third generation family member, became convinced that Lean would be the best means to make this happen. (Gokaldas Exports: A challenge of change; Stanford Business School, 2013.Case: SM- 213(A))
Nike’s Lean Challenge: Just Do It Gokaldas depended upon a small number of critical customers for the bulk of its revenues. In the first six months of 2004-05, for example, its largest buyer accounted for 49 percent of revenues and its five largest buyers for 79 percent.15 Nike, the global sportswear company, was among these critical customers and it, too, was feeling pinched by increased competition and rising costs. Nike decided to address these issues in part by reducing production costs in its supply chain, which was comprised of independent contract factories like Gokaldas. One of the approaches it opted to promote was Lean. (Gokaldas Exports: A challenge of change; Stanford Business School, 2013.Case: SM- 213(A))
TBM “CEO boot camp” TBM is a global leader at teaching and implementing operational and business process improvement through the training and application of Time Based Management strategies. The TBM “CEO Boot Camp” is an annual event wherein participating executives visit factories that are successfully implementing Lean practices and engage in direct discussions with their executive counterparts.
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(Gokaldas Exports: A challenge of change; Stanford Business School, 2013.Case: SM- 213(A))
Pilot and Persuasion Gokaldas and TBM agreed to demonstrate Lean on a single line in the Euro Clothing Company; the line they selected was operated by about 70 people and were producing 250 Nike jackets per day. The team quickly determined the main problem on the jacket line to be uncontrollable workin- progress. By the end of the week, the number of jackets produced each day had increased from 250 to 400 and the defect rate had decreased from 7-10 percent to 3-4 percent. (Gokaldas Exports: A challenge of change; Stanford Business School, 2013.Case: SM- 213(A))
Senior Management Lean Leadership and Sustainment Training An 11 day training program was organised by TBM for the senior management of the company. The purpose of the training was:
Train in lean production principles
Importance of cultural development
Application of the training in their areas of responsibility
5S: A lean tool used for workplace management and standardization. The 5S are- Seiri, Seiton, Seiso, Seiketsu, Shitsuke. Kaizen: Japanese word meaning “continuous improvement.” Kanban: It refers to a small cards attached to signal production and delivery actions. JIT: Just in time is a system for producing and delivering the right items at the right time in the right amounts.
Kaizen Promotion Office KPO is the department created in the company that coordinates, implements and manages the continuous improvement activities within the organization.
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Gokaldas Exports Factories At Gokaldas Exports, production is optimized through state of the art technology and infrastructure. Computerized spreading machines, auto jig, sleeve setting and pocket welting machines carry out the relevant processes with swift efficiency. Fully fledged embroidery, printing, seam sealing, washing and dyeing sections are equipped for accuracy and speed. The vital aspect of fusing is handled by highly trained technical operators on top of the line fusing machines, to achieve the perfect quality required. Highly organized production systems co ordinate seamlessly for optimal efficiency. Each unit is streamlined, specializing in the manufacture of a specific product. Steady capacity generation and strategic alliances with leading processing houses enable Gokaldas Exports to raise the bar on quality and production standards. The factories are automated with state of the art technology and ERP systems, generated towards mass production. Gokaldas Exports produces and exports 3 million garments each month. There are 100% export oriented factories, licensed for duty free imports of fabrics and accessories for re-export. To give greater control over quality and shorten the product- to- market timeline, all processes involved in garment manufacture are handled in house. Factories have their own in built stores for fabrics and accessories, enabling them to complete one particular order at a time. All in house facilities are integrated to facilitate speed, be it fabric cutting, fusing, finishing or packing. So that, whether it is a large bulk order or a small specialized order, Gokaldas Exports has what it takes to execute it on time. The company‟s factories are compliant with modern manufacturing practices to ensure higher productivity and on time delivery. Gokaldas Exports provides the buyer a one stop shop destination for any kind of garment right from ultra formal to ultra casual men‟s, women‟s and children‟s wear.
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The manufacturing units are:
Sr. No.
Factory Name
Location
1
INTEX- I
Intex I, No.31, Magadi Road, Bangalore – 560079, Karnataka – India.
2
INTEX- II
The Intex II, #26, 2nd Cross, 3rd Main Road, Industrial Suburb, Yeshwantpur, Bangalore – 560022, Karnataka – India.
3
INTEX- V
Intex V, No.4, 1st A Cross, Kamakshipalya, Magadi Road, Bangalore – 560079, Karnataka – India.
4
JDC
JD Clothing Company, No.9, Industrial Suburb Rajaji Nagar, Bangalore – 560010, Karnataka – India.
5
AA- II
Atlantic Apparels II, Plot No.28 D & E, Belawadi Industrial Area, Mysore – 570018, Karnataka – India.
6
AA- III
Atlantic Apparels-III, Survey No. A-7/1, Nacharam, Rangareddy, Hyderabad, Andhra Pradesh – India.
7
WCA
Wearcraft Apparels No.17/1-38/4-1, Industrial Suburb, Yeshwanthpur,
56
Bangalore, Karnataka – India. 8
TA- I
Triangle Apparels I, No. 804/75, 7th Ward, Jayapura Road, Tumkur – 572101, Karnataka – India.
9
TA- II
Triangle Apparels II, No.106/5-9, Arabic College Post, Bangalore – 560045, Karnataka – India.
10
TA- VI
Triangle Apparels – VI, # 25/26, 3rd Main Road, Industrial Suburb, Yeshwanthpur, Bangalore, Karnataka – India.
11
ECC- I
Euro Clothing I, No.122/1, Doddabidarukallu Village, Yeshwantpur, Bangalore – 560077, Karnataka – India.
12
ECC- II
Euro Clothing Company II, T.B.Road, Srirangapatna, Mandya District, Karnataka – India.
13
HPF
Hinduja Processing & Finishing Unit No 2, 5th Cross, Mysore Road, Bangalore – 560026, Karnataka – India.
14
HSW
Hinduja Sports Wear I, No. 73/19/5, Industrial Suburb Yeshwanthpur, Bangalore – 560022, Karnataka – India. Hinduja Sports Wear II, No. 72/73, Industrial Suburb Yeshwanthpur, Bangalore – 560022,
57
Karnataka – India. 15
ICC- I
International Clothing Company IV, No.180/1, Yellakunte, Begur Hobli, Hosur Road, Bangalore, Karnataka – India.
16
ICC- II
International Clothing Company-II Survey No.113, Hongasandra Village, Begur Hobli, (Near Bhondary Factory) 7th Mile, Bangalore – 560068, Karnataka – India.
17
ICC- IV
International Clothing Company IV, No.12, 'A' Block, 7th Mile, Near Bhandary Factory, Hosur Road, Bangalore, Karnataka – India.
18
CCC- I
Carnival Clothing Co, No.2/A-1, Chikkaveeranna Road Cross, Bannimantap Etn, Mysore, Karnataka – India.
19
CCC- II
Carnival Clothing II & III Govindapuram , Main Road, Bangalore – 560045, Karnataka – India. Carnival clothing company-II, Benganur Village Bangarpet - KGF Road, Kolar, Karnataka – India.
20
WW- I
The Wearwell I, no.17/A-34/A-1, Industrial Area, Yeshwanthpur, Bangalore, Karnataka – India.
21
WW- II
The Wearwell II Industrial Estate N.H-206, Tiptur. Bangalore, Karnataka – India.
58
22
VCC- I
Venkateswara Clothing Company I, No.10, KHB Colony, New Satellite Town, Yelahanka, Bangalore – 560064, Karnataka – India.
23
VCC- II
Venkateswara Clothing Company II, No.10, KHB, Colony Industrial Area Yelahanka, Bangalore – 560064, Karnataka – India.
24
GG- I
Global Garments I, No.17/1-38/4, Industrial Suburb, Yeshwantpur, Bangalore – 560022, Karnataka – India.
25
TUC
The Unique Creations, No.44, Industrial Suburb, 3rd Main, II Stage, Yeshwanthpur, II StageTumkur Main Road, Bangalore, Karnataka – India,
26
GI
Gokaldas India, No.21C & 21B, Survey No.34,35,36 & 37, Nallakadaranahalli, Peenya II Stage, Industrial Area, Peenya, Bangalore, Karnataka – India.
27
DMS
Dress Master Suits, No.77, 3rd stage, Peenya Industrial Area, Bangalore, Karnataka – India.
28
R&D
Gokaldas Exports R&D I, No.78, Mission Road, Bangalore – 560027, Karnataka – India. Gokaldas Exports R&D II, No.10, Mission Road, Bangalore – 560027,
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Karnataka – India. Gokaldas Exports (P) Ltd, R &D - III # 76/1, II & III Floor, Mission Road, Kalingarao Road, Bangalore – 560027, Karnataka – India. Gokaldas Exports R&D IV, No.39/2, II Main Road, CKC Garden, Bangalore, Karnataka – India. 29
GESEZ (Chennai)
Chennai SEZ Division, No.6/1, II Phase, MEPZ, NH 45, Tambaram, Chennai (Madras), Tamil Nadu – India.
30
IB (Denim washing
Indigo Blues, Plot No-2, KIADB Industrial Area,
unit)
Doddaballapur , Karnataka – India.
31
GG III (Washing Unit)
Global Garments III Annexe, No.40/2, 2-1 & 2-3, 1st main, Industrial Suburb, Yeshwantpur, Bangalore – 560022, Karnataka – India.
32
Luckytex I (Embroidery
No.17/A-34/A-1, Industrial Area, Yeshwanthpur,
Unit)
Bangalore, Karnataka – India.
33
Luckytex III (Printing
Luckytex-III, No.17/A-34/A-1, Industrial Suburb,
Unit)
Yeshwanthpur, Bangalore – 560022, Karnataka – India.
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Atlantic Apparels
Indigo Blue
Euro Clothing Company
Dress Master Suit
Intex
Gokaldas India
Euro Clothing Company
Wear Craft Apparels
Global Garments III
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Visit to manufacturing Unit- Dress Master Suits (DMS) Fabric and accessories store The fabric accessories stores are responsible to maintain all the fabrics and accessories/ trims that come in house. The stores check the quality, quantity of the accessories/ trims and keep them ready for assembling. The fabric comes in the form of rolls of different meters and varied cuttable width and is checked for any holes or defects on the fabric relaxation machines.
Cutting section The cutting section is equipped with the Gerber spreader and cutter that ensure 100% perfection. It improves the cutting process with minimal waste and cost. For some fabrics/ orders manual laying is done as well.
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The following flowchart explains the cutting room processes:
Marker making Fabric laying Fabric cutting
Checking cuttings
Stickering
Sorting/ Bundling
Stitching
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CAD section The CAD section provides the patterns for different styles. It is their responsibility to generate efficient markers well before the PCD (Planned Cut Date).
Sewing section Sewing is one of the main sections. The main function of the sewing department is to attach different parts on the garment in the form of the assembly line. The sewing section is equipped with different kinds of sewing machines like the feed off arm, overlock, button hole, bartack, double needle overlock, triple needle lock, double needle chain stitch, triple needle chain stitch, computerized welt pocketing machine, belt loop attachment machines, etc. The assembly lines are well organized along with ironers and in line and end line checkers. Garment samples are attached at critical areas.
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Sewing section workflow
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Finishing This section plays the most crucial role in ensuring 100% perfection of all the products. It is inspected that all the features demanded by the clients are designed or not. The experts thoroughly check all the products to make sure that the perfect products are delivered to the client. The products carry the brand image of the company. That‟s why utmost care has been taken in this section to ensure that all the products are faultless. The major functions performed in this section are extra thread cutting, ironing, size check, snaps/ buttons checking, final inspection, heat transfer label if any, tag attachment, metal detection, hard tag attachment, shade segregation, size segregation, folding and packing.
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The
finishing
section
process
flowchart
is
as
follows:
Thread Cutting Initial Checking Pressing (Flat & Armhole) Measurement Checking Snaps/ Buttons Checking Final Checking Tagging Heat Transfer Label (If any) Metal Detection Folding & Packing Packing to box Inspection of ready to ship goods Dispatch shipment
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Factory organization chart
COO
GMProduction
GM- Quality
Factory Manager
Factory Manager
Asst. Factory Manager
All Department heads
Floor incharge
Supervisors
1. Fabric 2. Cutting 3. Stores 4. Despatch 5. Maintenance 6. Finishing 7. Packing
QAM
HO QA
PS Incharge
Quality checkers
Endline checkers
PSO
Needle issuer
KB checker
MD operator
Inline checkers
Finishing checkers
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Functional departments and their QMS Objectives 1. Manufacturing administration, Factory manager, Production manager
Objectives
Method of
Target
Measurement
Achievements
OTP
FPR
95%
Rejection
FPR
< 1.5 %
CPM
FPR
< Rs. 1.5
Absenteeism
FPR
< 8%
Attrition
FPR
< 8%
2. Fabric and accessories store
Objectives
Method of
Target
Measurement
Achievements
Collect the material from the
95%
central warehouse at least 1-3 days before PCD Store and ensure the issue of
100 %
material to cutting section/ sewing section, shade wise/ lot wise/ width wise and shrinkage wise as per the report of the central warehouse 5S Complete FCR and TCR within 3
5S Audit
Level 2 100%
days of PO completion
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3. CAD section
Objectives
Method of
Target Achievements
Measurement Achieve and improve
Approved consumption
approved marker efficiency
report
Compare to approved
4. Cutting section
Objectives
Method of
Target Achievements
Measurement Maintain and keep
Stock register
90%
FTR (First time right)
Re- cutting log book
90%
Achieve 5S level 2
5S Audit
Level 2
Method of
Target Achievements
minimum 2 days of cut stock of daily factory requirement
5. Sewing section
Objectives
Measurement Adherence to GEX quality
QAM report
95%
IE scorecard
95%
5S Audit
Level 2
guidelines Adherence to HO line design 5S
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6. Finishing section
Objectives
Method of
Target Achievements
Measurement Ensure finishing backlog is
Final audit
100%
PS report
100%
5S
5S Audit
Level 2
Achieve 95% FTR to
Shipment log
90%
OCR log
90%
not more than 2 days Ensure 100% garments packed are metal free
customer OCR report prior to shipment to be sent to respective G.M.‟s
7. Productive maintenance
Objectives
Method of
Target Achievements
Measurement Track, record and reduce
Mechanic trend chart
95%
TPM chart
95%
5S Audit
Level 2
the machine downtime occurrence Adherence to TPM guidelines for services 5S
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8. Industrial Engineering
Objectives
Method of
Target Achievements
Measurement Verify and report HO line
IE scorecard
95%
Skill matrix form
100%
Method of
Target Achievements
design implementation and any deviation thereof Grade all operators and checkers on skill matrix
9. Quality control
Objectives
Measurement Ensure all quality
QA File
95%
QAM report
95%
comments of HO QA/ customer QA are incorporated in bulk production with corrective action evidence Ensure implementation of GEX quality guidelines
10.Personnel, H.R. and Compliance
Objectives
Method of
Target Achievements
Measurement Ensure adherence to
Recruitment policy
100%
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recruitment policy Introduction and induction
Induction log book
100%
Absenteeism
Absenteeism report
< 8%
Maintain social compliance
Customer compliance
100%
to statutory regulatory
policy
of all new joiners and same shall be documented
customer requirements 5S
5S Audit
Level 2
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Garment Wash The main washing units of Gokaldas Exports are GG III at Peenya and Indigo Blue at Doddabellapur. Where Indigo Blue specializes in denim washing, non- denim garments are washed at GG III. The washing division is equipped with automatic machinery with a processing capacity of over 1, 25, 000 garments a day. Experts from Europe and Hongkong regularly visit to update the technicians on the latest technologies. Garments pass through various handling processes, which may render them dirty or stain them, thereby reducing their aesthetic appeal. To restore this aesthetic value, they are subjected to cleansing process. Also, at times a certain look has to be given to garments for which they have to be washed with certain chemicals and techniques. For these purposes, garments are sent for washing by the production department as per the buyer‟s requirement. Normally the fabrics are not asked to go for wash by the buyer. But at times, fabrics may be sent for wash for a number of other reasons; like:
To control uneven shrinkage
To even out color shade
To lighten color shade
To improve the hand feel
To even out color shade variations
To remove printing smell
To execute a dyeing program
The units can handle all kinds of washes and also provide various desired effects. Following are the different types of wash services available:
Wet Processes 1. Acid wash 2. Antique wash/ Vintage wash 3. Bleach wash 4. Destroyed wash 5. Enzyme softener 75
6. Enzyme stone wash 7. Enzyme stone bleach 8. Fabric wash/ lay wash 9. Garment wash 10. Heavy bio poly wash 11. Ice wash 12. Medium stone wash 13. Micro sand wash 14. Paper touch garment wash 15. Potassium permanganate wash 16. Rinse wash 17. Rubber ball wash 18. Silicon wash 19. Softener wash 20. Stone wash 21. Twill wash
Dry Processes 1. Grinding 2. Grinding and Nicking 3. Hand sand blasting 4. Hand sanding 5. Tinting 6. Spraying
Dyeing 1. Treatment Dyeing 2. Reactive Dyeing
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Visit to washing unit: GG III (Global Garments III) The washing unit GG III is mainly divided into three sections .i.e. the Inward Dispatch section, the Washing/ Dyeing section and the Outward Dispatch section.
GG III
Inward Dispatch
Washing/ Dyeing
Outward Dispatch
Inward Dispatch In the inward dispatch section the garments are unloaded arriving from various factories. They are counted and cross checked. Checking is also done for any issues in the garment. If everything is clear the garments are issued for washing along with a „Job Card.‟ The „Job Card‟ contains all the information like OC#, Style#, wash details, wash recipe, factory details, merchant details, etc. This section checks the garment for different aspects such as:
Type of the material
The texture that is under demand
The feel and look of the garment under demand
Dye stuffs used for the garment
Types of chemicals that should be used to get the desired look and feel of the garment.
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Effects of those chemical on the fabric
The sensitivity criteria of the fabric
The sequence of the processes
Temperature at which the garment has to be treated
Duration of the treatment
After coming to the conclusion of what recipe has to be used for the garment they start treating the garment in the same sequence. There are separate bins for each factory in which the garments are unloaded and taken for washing/ dyeing to different sections.
Washing/ Dyeing Section The washing/ dyeing section is divided into four sections: Section A and Section B are equipped with machines for all types of washes; Section C is utilized only in case overload or any kind of backlog and Section D specializes in dyeing. All the sections are well equipped with horizontal and vertical washing machines of different capacities ranging from 50 kg, 100 kg (for sampling purposes) to 500 kg, 1,000 kg (for bulk orders). Washing Machinery Horizontal Washing Machine: This machine is being used for washing garments and fabric rolls. The number of these machines are comparatively less as the unloading of garments from this machine is manual and can cause injuries to the operator. Vertical/ Front loading Washing Machine: This machine is used only for washing garments. Fabric lots are not washed in these machines because the fabric lot gets entangled in the front loading machines. These machines are fully automatic and the garments are unloaded automatically. This makes these machines much more convenient and easy to operate with less dangers of injury. Hydro Extractor: The garments are wrung in these machines to remove excess water after washing. The garments are spun in drums which rotate at high speed squeezing the water out of them. Excess water drains out through the drainage pipes. 78
Tumble Dryer: This machine evaporates out all the left over water from the garments making them completely dry. Tumbling is carried out for varied time and varied temperatures depending upon the fabric quality.
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Dry Processes Apart from the wet processes, there is a separate section for dry processes like whiskering, grinding, crushing, spraying, tacking, scrunching, etc.
The dry processes section is equipped with various machines and tools required for the various processes. Many of the processes are done manually as well. The section is equipped with manicoles especially for whiskering and hand sanding. Dry processes for sampling as well as bulk are carried out in this section.
Outward Dispatch After all the processing, the garments are brought to the outward dispatch section and put into the respective factory bins. They are further sent for checking where skilled checkers check the garment for the following:
Hand feel
Abrasion
Color loss
Wash effects
Stains
Oil stains
Silicon spot
White spot 80
Zip tint
Patches
Pilling
Streaks
Fusing marks
Folding marks
Chalk marks
Print loss
Chipping off
Needle holes
Shade variation
Damages
The checkers are provided with the „Job Card‟ at this stage; the backside of which contains the washing standards to be filled by the checker. After all the checking is completed and the garments have passed the AQL (Accepted Quality Level), they are weighed and dispatched to the respective factories.
Treatment of new styles In case wash is required for a new style of garment, for which a new recipe is to be developed; a trial wash is conducted for the new style before proceeding with bulk. The new recipe is entered in the trial recipe book and issued for the trial wash. The trial washed garments are then sent to the buyer/ merchandiser for approval. Based on the comments received from the buyer/ merchant; changes are made in the recipe and bulk is started. If the recipe proves good enough, it is added to the permanent standard recipes.
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Chemical issue section The chemical issue section is like a store of various chemicals required for different washes. The facility has a chemical issue section which issues the chemicals for the recipes for different washes. The person in charge makes sure the right chemical is issued in the right quantity with the right ingredients otherwise it can damage the garments.
Boilers The facilities are equipped with boilers to provide generate steam. Steam pipes connect the boiler and all the machines and the amount of steam can be altered with the help of valves present. Steam is generated through a mixture made of groundnut seeds and shell which is a sustainable way to create energy.
Procedure to issue the wash service The procedure to issue wash service is as follows:
Mention the Style #, OC # and quantity in the indent.
If the garment has multiple types of washes, issue separate indents for the same.
Separate indent is required for grinding and spraying.
If leather patches or appliqués are being used on the garment, garment needs to be washed before attaching the embellishments to avoid bleeding of the fabric color.
Assign the indent to the „Production & Planning‟ department.
Give the approved wash standard to the washing unit and keep the counter with the merchant.
Approval on the 1st sample garment to be given at the earliest to commence the bulk garment wash.
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The Key Learnings
The organization is well organized and systematic.
The merchandiser is the connection or the key player between all the departments as well as the buyer/ customer.
Every department has their key roles well defined, and the supervisors who keep track of who is working on what in the department.
Sampling, CAD, IE and other departments are the main departments with whom a merchandiser deals. Apart from these, the merchandiser has to deal with the factory and production manager as and when required.
Collected fabric swatches which gave clarity about the different types of fabrics.
Visited company units and thereby observed the actual processes a garment goes through prior to shipment.
Went through the techpacks, cost sheets, thread consumption reports, test reports of various styles which gave me clarity.
Went through the OC file and Order Pouch of a style; which gave me an insight into the various documents that are prepared for order completion.
Gained first hand information and made observations from the various departments in the export house.
Created development samples (shirts) for the UK based buying agency DPJ Clothing which gave me a meaningful insight into the export industry.
Understood the difference between the working of an old buyer with prescribed procedures and a new buyer (agency) looking for new developments.
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Conclusion Gokaldas Exports Ltd. is one of India‟s leading garment manufacturer and exporter. The organization has an infrastructure that is fully equipped to handle both knits and wovens. Exports include shirts, t-shirts, blouses, jackets, children‟s wear, sportswear, denims etc. Gokaldas Exports has a wide range of products to offer to its buyers. Their factories are fully equipped with all latest machineries and technologies as it has separate units dedicated to sampling, washing, embroidery, printing, quilting and polyfill manufacturing i.e. they have everything inhouse required for garment manufacturing thus making specialization of its products possible and thus catering to the diversified and increasing demands of its buyers. The company has a very dedicated and concerned product development team which works continuously in development of new fabrics, styles keeping in mind the requirement of the ever changing fashion world.
Within their products, the company works with a number of fabrics and trims for a single style. They handle styles that have intricate detailing such as use of different trims, fabrics in the same garments. Sometimes a single style has number of colourways. A dedicated team of managers a quality control department continuously monitors production to match every order to design specifications. The sourcing department is very hard-working and focused and they work with all the major mills and suppliers within India as well as abroad. The marketing & merchandising teams are very dedicated and hard-working & can be called as the pillars of the company as they are the ones who co-ordinate with each and every department of the organization as well as are representatives of their company in front of the buyers. Due to such dedicated employee‟s & management, Gokaldas exports today is one of the biggest name in the garment industry worldwide.
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