SHAHI EXPORTS PVT LTD. MIS ASSIGNMENT
RHEA SEHGAL, SHIV PRATAP SINGH
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SHAHI EXPORTS PVT LTD. 2015
INTRODUCTION SHAHI Exports Pvt. Ltd. is engaged in the manufacture m anufacture and export of readymade garments in the International market. It is one of the largest export houses in India. The company started its operations in the form of a small fabrication unit with the help of 25 machines. The company has grown from leaps to bounds from a simple fabrication unit to present turnover of Rs. 2200 crore, around 55000 employees and spread over 27 locations. It has manufacturing units in six different states of India viz. Delhi, Haryana, Uttar Pradesh, Tamil Nadu, Karnataka and Andhra Pradesh. The group is into manufacturing of a wide range of Men’s and Ladies wear and also home products. SHAHI group has all the modern units equipped with state-of-the-art technology giving the best to its buyers. Its manufacturing facilities includes Assembly line machines, Prima Vision system print/fabric development, Meyer fusing press, Barudan and Tajima, Multi head computerized embroidery machine, in house washing plant, automatic cutting machines (F.K. Systems). SHAHI has a well-equipped sampling division where latest l atest patterns/designs/styles patterns/designs/styles of high standards s tandards are developed with the assistance of experienced designers. It has a training center for tailors at Faridabad and Bangalore each to train and develop them into vital human resource for efficient operations. As regards to quality, SHAHI has been ranked one of the best in Asia by J.C.Penny, the world-renowned departmental stores.
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SHAHI EXPORTS PVT LTD. 2015
INTRODUCTION SHAHI Exports Pvt. Ltd. is engaged in the manufacture m anufacture and export of readymade garments in the International market. It is one of the largest export houses in India. The company started its operations in the form of a small fabrication unit with the help of 25 machines. The company has grown from leaps to bounds from a simple fabrication unit to present turnover of Rs. 2200 crore, around 55000 employees and spread over 27 locations. It has manufacturing units in six different states of India viz. Delhi, Haryana, Uttar Pradesh, Tamil Nadu, Karnataka and Andhra Pradesh. The group is into manufacturing of a wide range of Men’s and Ladies wear and also home products. SHAHI group has all the modern units equipped with state-of-the-art technology giving the best to its buyers. Its manufacturing facilities includes Assembly line machines, Prima Vision system print/fabric development, Meyer fusing press, Barudan and Tajima, Multi head computerized embroidery machine, in house washing plant, automatic cutting machines (F.K. Systems). SHAHI has a well-equipped sampling division where latest l atest patterns/designs/styles patterns/designs/styles of high standards s tandards are developed with the assistance of experienced designers. It has a training center for tailors at Faridabad and Bangalore each to train and develop them into vital human resource for efficient operations. As regards to quality, SHAHI has been ranked one of the best in Asia by J.C.Penny, the world-renowned departmental stores.
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SHAHI EXPORTS PVT LTD. 2015
COMPANY PROFILE
Name: Shahi Exports Exports Private Limited
Established: 1974
Owner: Mrs. Sarla Ahuja
Managing Director: Mr. Harish Ahuja
Address: Industrial Plot-1, Sector 28 Faridabad, Haryana
Work Force: More than 30,000
Capacity: Over 2 million high quality garments per month
Retail House: At Last & Co. , New York
Fabric Processing: Sarla Fabrics, Ghaziabad
Annual Turnover: INR 2200 crore (Group Turnover)
COMPANY MISSION Exploring new dimensions of excellence. A path, where there was none. A new horizon beyond yesterday. Excellence beyond today, touching tomorrow. It’s a world of relentless quest for quality. Its mindset, the action, and partners of Shahi are ever reaching further, never resting on achievements. Yes! Milestone never takes one there; it is the road that we create to reach excellence. Ever evolving excellence. Shahi believes that its main strength is its people. The larger investments made in the manufacturing units will give the desired results only if backed by a committed human effort. The result will directly give us a sense of pride for being a part of Shahi family.
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SHAHI EXPORTS PVT LTD. 2015 CORPORATE VISION Be the global best in bringing delight to human life by weaving dreams of fashion & feelings of comfort.
CORPORATE VALUES Guiding principles illuminate the path that leads to their destination. SHAHI emphasizes on some guiding principles, which are indicative of the values it believes in and would like to continue in the organization. These are the building blocks of the organizational culture. The company believes in:
High level of honesty and a sense of responsibility.
Two-way communication channel for all purposes of communication.
In sharing the fruit of growth, prosperity with its partners i.e. the employees.
In giving each individual room to contribute and grow.
The company firmly believes that team spirit is the hallmark of success.
KEY STRENGTHS
Shahi Exports Private Limited (Shahi) is one of the largest vertically integrated garment manufacturer and exporter in India. I ndia. India’s second largest apparel exporter by value of exports. Shahi is one of the most successful professionally managed companies in India. India’s largest exporter by installed ins talled capacity. Well qualified trained and committed professionals with a shared vision. Highly qualified Design team, Product development skills and a Design Studio. High degree of adoption of advanced manufacturing technology MIS and IT systems. All factories and offices are electronically linked to facilitate all time access to information Focus on quality and a proven track record : Short shipment: 0.50% On time delivery: 98% 3
SHAHI EXPORTS PVT LTD. 2015 Quality claims: Nil.
PRODUCT PROFILE The following are based and operated in NCR 1. LSD – Ladies Specialty Division 2. LBAD – Ladies branded Apparel Division 3. LFD – Ladies Fashion Division (basically caters to Wal-Mart) 4. HFD – Home Furnishing Division
MAJOR BUYERS
Tommy Hilfigher Armani Hugo Boss Liz Claiborn Abercrombie & Fitch (A & F) J.C. Penny Kohls
Gap Target Wal-mart Calvin Klein Espirit Hennes & Mauritz (H & M) NauticA
SUPPLIERS The main markets for fabric supply for Shahi are Delhi, Panipat, Amritsar, Salem, Mumbai. Some of the fabric suppliers of Shahi (for both sampling & Production) are:
Muthu Corp, Erode
Picanova fabrics pvt ltd, Mumbai
New Diamond Woollen mills, Amritsar
Mafatlal Industries Ltd, Nadia
Ramkumar Mills Pvt Ltd, Bangalore 4
SHAHI EXPORTS PVT LTD. 2015
Netflex India Pvt Ltd, Mumbai
Priyanka Fabrics, Salem
Bhuvana Fabrics, Erode
Vincord Textiles, Delhi
Vijai Fabric Connection, Erode
L.K Woollen & Silk Mills, Amritsar
A.P Khanna & Sons Pvt Ltd, New Delhi
Himgiri Textiles, Faridabad
Rajindra Handloom Pvt Ltd, Panipat
Shiv Shakti Furnishing Pvt Ltd
KCS Fabrics Pvt Ltd (handloom, jacquard upholstery & curtains)
Maurya’s, Delhi
Parkash textile Mills, New Delhi
Charu Enterprises, New Delhi
R.G Jindal & son’s Pvt. Ltd.
The thread suppliers are:
Coats
Vardhaman
Pashupati
Oswal
Shahi has an in-house testing lab for measuring GSM, color fastness, rubbing fastness, Dimensional Stability, stretchability and testing others properties of fabrics For labdips, strikeoffs and other approvals, fabrics are sent to testing laboratories like:
MTL
ITS-International Testing service
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SHAHI EXPORTS PVT LTD. 2015
ORGANIZATIONAL CHART
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SHAHI EXPORTS PVT LTD. 2015
ORGANIZATIONAL STRUCTURES Product design & development HOD Senior merchandising manager Senior Designer Assistant Designer Junior designer
Merchandising Department Merchandising manager Divisional merchandising manager Senior merchandiser Junior merchandiser
Cutting Manager Spreader Cutting master Quality checker Part checker Supervisor Ticketing Bundling Fusing Part cutting
Production Department Production Manager Floor Manager Line supervisor Operators
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SHAHI EXPORTS PVT LTD. 2015 Accessory Department Accessory In charge Store Assistant Quality checker Helper
Accounts Department Senior Manager Assistant Manager Credit control manager
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SHAHI EXPORTS PVT LTD. 2015
DEPARTMENTS
PRODUCT & DESIGN DEVELOPMENT MERCHANDISING DEPARTMENT SAMPLING DEPARTMENT ORDER ANALYSIS DEPARTMENT COMPUTER AIDED DESIGN DEPARTMENT PRODUCTION PLANNING AND CONTROL DEPARTMENT FABRIC SOURCING DEPARTMENT
PURCHASE & LOGISTICS DEPARTMENT TESTING LABORATORY DEPARTMENT
FABRIC STORE AND INSPECTION DEPARTMENT
CUTTING DEPARTMENT
COMPUTERIZED EMBROIDERY DEPARTMENT INDUSTRIAL ENGINEERING DEPARTMENT SEWING DEPARTMENT WASHING DEPARTMENT
FINISHING DEPARTMENT
PACKAGING AND DISPATCH DEPARTMENT
DOCUMENTATION
HUMAN RESOURCE
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SHAHI EXPORTS PVT LTD. 2015 MERCHANDISING DEPARTMENT A merchandiser is an interface between the buyer and the supplier who has to ensure the quality of production and timely delivery. Merchandising is a process through which products are planned, developed, executed and presented to the buyers. It includes directing and overseeing the development of product line from start to finish.
ROLE OF THE DEPARTMENT To look for the appropriate market
To get the samples made according to the buyer’s specification
To estimate and quote the cost of the garment to the buyer and negotiate with them
Getting orders
Constant interaction with the buyer for the approval
To get the fabric and trims in-house for bulk production
coordinating with the PPC and production
OBJECTIVE OF MERCHANDISER To create market
Understanding buyers’ requirements
Sourcing of materials, fabrics
Select the range
Creating the product
Taking buyers approvals
Negotiation with buyer
Procuring the orders
Materializing the order
Execution the order
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SHAHI EXPORTS PVT LTD. 2015
Coordination department
between
production
and
production
planning
Dispatching the shipment
After shipment dispatching merchandiser is also responsible for buyer claims, profit and subsequent orders. If buyer has any problem in quality of the product then it is the responsibility of the merchandiser to resolve the problem with the buyer.
FABRIC DEPTT. Q.A. SHIPPING DEPTT. DEPTT.
ACCESSORIES
FINISHING DEPTT.
DEPTT.
MERCHASNDISER
CUTTING
MERCHANDISING
DEPTT
DEPTT.
INDUSTRIAL
SPREADING DEPTT
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ENGG. DEPTT
ORDER ANALYSIS
PRODCTION
DEPTT.
DEPTT.
SHAHI EXPORTS PVT LTD. 2015 HIERARCHY PROFIT CENTER HEAD, MARKETING
DIVISIONAL MARKETING MANAGER
MARKETING MANAGER
SENIOR MERCHANT
MERCHANT
JUNIOR MERCHANT
CO-ORDINATOR
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SHAHI EXPORTS PVT LTD. 2015 PROCESS OF MERCHANDISING: The first stage of merchandising is when buyer sends either spec, sketch or
any garment pieces and asks for sample with costing or only costing using different fabrics. The specs sent by the buyer are also called Tech Packs.
The merchandiser gets the approval of all things like fabric, trims, label, costing etc. and either buyer gives the approval or gives the vendors’
name. -The allocation chart and FTP directory is received by the merchant from the buyer online. -The fabric CAD is also received from the buyer which has all the details of the pantone shade and the repeat size. -The prints are developed from their own mill, SFL (Sarla Fabric Limited) or are subcontracted. -A CD is developed which has the color picture of the fabric. This is sent to the fabric department for development. -Sample piece is developed.
Next, costing is done on the basis of the spec, sketch and garment which are sent by the buyer for making the sample. Merchandiser does the average costing/consumption of the garment. The quotation is sent to the buyer/buying house and the approval is awaited. One thing is to be noted that while giving the consumption, the cut-able width of the fabric to be received (either mill made-developed in India or imported fabric) has to be considered while costing. Also the marker utilization depends on the style, which may affect the consumption greatly. The fabric characteristic also matters vis-à-vis nap etc.
The merchandiser monitors the design from sampling to production and
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SHAHI EXPORTS PVT LTD. 2015 then final dispatch. They are a link between the buyer and the company. All correspondence that the buyer wants to do regarding his style will be done through the merchandiser. Merchandiser monitors the total sampling from development to the time the production sample is made and goods go into actual production.
They also see that the fabric is developed on time and send it for approval to the buyer and subsequently if all samples are made on time, send them to the buyer for approval too. They are also in constant touch with production to know the status of their styles.
Merchandising activities include: 1. To get order: Buyer directly communicates with the merchandiser in order to place the order. Fixed buyers are allotted to merchandisers and the communication is between the buyer and that particular merchant. 2. Costing: Costing of the garment in bulk is calculated on the basis of quality of material and their requirement in the garment. It is one of the most important activities of the merchandiser. To arrive at a perfect price to be quoted to the buyer, following points are taken into consideration: Costing is done considering these aspects of the cost.
COST
FIXED COST
VARIABLE COST
FIXED COST
1. Factory Cost - It is the fixed cost incurred for running the factory. It is
different for different 2. Standard Sewing Cost
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floor.
SHAHI EXPORTS PVT LTD. 2015
Direct Labor: Operators Salary
Indirect Material: Lubrication Oil, Needles , Cleaning Material
Indirect Labor:
Indirect Expenses: Power, Depreciation Of The Machinery
Staff & Maintenance Salary
The standard sewing cost per operator per hour defined by Shahi for its Faridabad unit is
Rs 62.83. VARIABLE COST
1. YY (Yields/yards) – It is average consumption of the fabric. It is decided by preparing a mini-marker which includes wastage of fabric due to laying, cutting, fabric defect, end cutting loss, marker loss and the buffer that is maintained to avoid shortage in future. 2. Trims Cost – They are procured from local market as well as imported as per buyer’s re quirements.
Calculation of cost of fabric per garment
Calculation of cost of trims and threads
Cut-make cost
Poly bag cost
Cost of carton box
Calculation of consumption of fabric (yields per yard) and
threads to produce one garment 3. Sampling:
Merchandiser is involved in coordinating with the sampling
department. Based on the mutual agreement between the merchant and the buyer, sampling department is involved in making samples. In every step of samples, buyer sends back comments along with the tech pack. 4. Order confirmation: After the approval of all the samples, the order is confirmed by the buyer. Merchandiser receives the PO sheet. Merchandising 15
SHAHI EXPORTS PVT LTD. 2015 department communicates with planning and production departments and decides for the possible PCD (production cut date) for the required quantity. Then he fixes up the PCD and delivery date with the buyer. 5. Preparing the time and action plan: This is prepared by the merchant stating that all the different activities associated with the order should be complete by the stipulated dates. It is like making sub goals to accomplish the ultimate goal which is shipping of the order on the pre- decided date. 6. Preparing the bill of material: This enlists all the different materials required for making the garment. 7. Execution: Merchandising department communicates with the buyer QA during the production. He gets the approval of the quality or any changes in the garment. 8. Shipment of goods: According to delivery date the goods are shipped on time. Documentation department is informed about the delivery date, the quantity etc. In case of any delay, goods are sent through air on the company’s cost.
For each order, the merchant has to prepare a file containing all the details and relevant documents which is passed on to the subsequent stages in the production process for reference purposes.
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SHAHI EXPORTS PVT LTD. 2015 DOCUMENTATION IN MERCHANDISING File prepared by merchant has following details:
Style Specification: contains a brief description of the style.
Style # : as mentioned by the buyer
Movex item # : Item number of the style by Movex
Buyer: Name of the buyer
PCD: Production cut date for the style
Merchant: Name of the merchant handling the style
The file contains the following:
Purchase order for the style
Garment techpack
Relevant communication with the buyer regarding proto, fit and preproduction samples. All the comments from the buyer for various samples are included.
Thread consumption report
Fabric Test Report
Fabric and trim cards: Contains swatches of the fabric and trims to be used
Mini marker with costing average
FOLDER SUMMARY
It consists of the general details like brand name, buyer’s name, size range and
the drawing of the garment. 1. Color / Trim Page: It consists of the details like description, size of the trims like button size, material of which it is made of, no. of holes that it should have. 2. Fabric Page: It consists of the details of the fabric like the count of the yarn, construction (EPI, PPI) and color specifications. It also states the 17
SHAHI EXPORTS PVT LTD. 2015 value addition finishes and embellishments. 3. Packing and Labeling Details : It consists of the details like type of packing, hanger type, polybag type, clips type of labeling. 4. Label Placement : It describes with figures where the label, hang tag, spare button is to be attached. 5. Correct Balance : Basic and important tips for correct fit 6. How to Measure: It shows how to measure the important dimensions of the garment. 7. Technical Sketch: It is a 2-D representation of the garment showing all the stitch lines, panes, trims etc. symbolically. 8. Development Photos : It consists of the photos of the garment. 9. Specification Sheet: It consists of all the dimensions with tolerances and increments for bigger sizes. 10. Bill Passing Reports: This is the report used in fabric receiving. It states details like type, quantity, receipt no, item details, amount. It also has goods receipt note attached. It contains fabric code, width, color, quantity, rate, value etc. 11. Feedback : The feedback comes in the form of comments and photographs of the garment on the dummy with its errors highlighted like puckering and pinching. 12. Costing Sheet: Contains details like cost of fabric, trims, washing, embroidery, sampling, testing, freight, duty, insurance etc. 13. Style Track Sheet: It is used to track the status of the order. It consists of details like style no., merchant’s name, floor on which it is allocated, name
of the floor manager. 14. Initial Marker Planning Sheet : It consists of fabric width, total pieces, pieces placed, efficiency and length.
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SHAHI EXPORTS PVT LTD. 2015 15. Approval Form : Approvals can be for fabric, trims, slight errors which are acceptable to the buyer.
Workflow of the Merchandising Department Buyer’s enquiry / Tech-pack
Costing
Style finalization
Purchase Order received
Fit approval process
1st fit
Fabric/Material approval
2nd fit
Fabric/Material order
Pre production sample
Fabric/Material follow-up
Size set
Fabric/Material in-house
Production
Follow-up
Regular tracking and updating buyer
Order shipping
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SHAHI EXPORTS PVT LTD. 2015 SAMPLING DEPARTMENT Sampling department is the most vital department of the organization. It is the department that develops the samples thus enabling the Product Development. This department prepares samples on the basis of the requirements of the buyer. The sampling department here caters to the need of all the other units of Shahi as it was centralized. Sampling was self-sufficient as it had its own stitching. Washing, trimming, spotting, and ironing etc. dedicated for the construction of samples only. The fabric and trims are sourced from the in house warehouse depending upon the availability. The fabric which is sourced for the sampling purpose is called yardage and is 25-30mts in length.
SAMPLING PROCESS: The process of sampling goes through a series of sampling stages each of them are explained below: 1. PROTO SAMPLE: It is the reflection of the first techpack received from the buyer. The sample is sent to the buyer for the design approval. Proto sample is made in the base size. Styling is important. The comments and second tech pack is sent back referring changes in the sample. 2. FIT SAMPLE: The comments are received regarding the shape, size and fullness. The sample is checked for fit on body forms. It is made in exact fabric, though print maybe different, since the drape and fit are to be checked. 3. SECOND FIT SAMPLE : It is similar to the first fit sample made with a few changes according to comments received from the buyer. Again a third or fourth fit sample may be required to be made. After approval of fit sample, order is confirmed along with all the specifications.
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SHAHI EXPORTS PVT LTD. 2015 4. PRE-PRODUCTION/SEALER SAMPLE : This sample is known as the bible of production. It is done for the base size of any one color and actual fabric and actual trims are used. 5. SIZE-SET SAMPLE: The sample is made in actual fabric and trims in all sizes and is sent to the buyer for approval. 6. GPT SAMPLE: These samples are made for garment testing for seam-slippage, tearing strength; button pulling etc. it is the garment pack sample. 7. TOP (TOP OF PRODUCTION) SAMPLE : It is the best sample from first of bulk production. 8. SALESMAN SAMPLE : It is made for the buyer to find out the opinion of the store owners whether the style would sell in the market or not, and the demand of that product.
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SHAHI EXPORTS PVT LTD. 2015 WORKFLOW OF THE SAMPLING DEPARTMENT
Merchandiser orders for fabric Requisition
Patterns are made as per the PO
Raw material is issued on PO
Cutting
Embroidery (if any)
Sewing
Bar-tacking, B/H
Washing
B/A, Riveting
Alteration (if any)
Thread Trimming
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SHAHI EXPORTS PVT LTD. 2015 Measurement Checking
Ironing
Initial Checking
Spotting
Final Checking (according to PO)
Packing
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SHAHI EXPORTS PVT LTD. 2015 Fabric in-house in store
Star
Uploaded in system by floor in charge
WORFLOW OF
Goods Received Note rovided b store in char e
THE FABRIC
Physical and technical
STORE AND Test by lab
INSPECTION
Rejected
Accepte
DEPARTMENT
Yes
Report to
If
Is fabric imported mill
N Report to fabric Yes
No
100%
100% 10% random
100% audit
Re ort Re ort to fabric
Report to DMM
Uploaded in Report
N Return fabric to
Yes U loaded in Ready to cut
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End
SHAHI EXPORTS PVT LTD. 2015 WORKFLOW OF THE CUTTING DEPARTMENT File, sample received from OAD Fabric receiving from stores Recording of fabric as per lot shrinka e width Sample cutting
Cutting approval Cut order issue Receiving of marker Layering Cutting (CAM/manual) Checking Numbering Embroidery (if required) Fusin
if re uired
Re-cutting (if required) Bundling
Quality audit
Dispatch to stitching unit
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SHAHI EXPORTS PVT LTD. 2015 WORKFLOW OF THE FINISHING DEPARTMENT Receive goods from sewing
Kaj / Button marking (manually)
Bartacking Measurement check (10%)
Button hole stitching Final checking
Washing Re-pressing Button attaching Tagging Thread Cutting Shade matching Thread suctioning Folding and putting in poly bags Ironing Quality Audit Initial Checking Dispatching to packing section Alteration (if any)
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SHAHI EXPORTS PVT LTD. 2015 Erudition: Finishing is one of the most important departments where the final
appearance of the garment is achieved.
Loose threads are deterrent to business
It is better to remove as many unwanted threads at the sewing stage as possible
Proper carton packing needs to be done for avoiding problems in shipping
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SHAHI EXPORTS PVT LTD. 2015
SWOT ANALYSIS
Strength
Weakness
Vertical Integration
Centralized cutting
Specialized units
Technological Advancement
Quality adherence
Centralized Merchandising
Introduction of ERP
Inefficient use of ERP
Efficient planning Department
Communication gaps between team members
Opportunity
Incentives and support from government for export oriented units. International presence Low labor cost comparing to buying countries
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Lack of team work
Threat
International Competition
SHAHI EXPORTS PVT LTD. 2015 STRENGTH: VERTICAL INTEGRATION Shahi Export House Company started its operation way back in 1973. Earlier established in Delhi (Okhla), now in Faridabad, Shahi stands vertically integrated as one of the largest manufacturer/exporters in India offering ready-to-wear garments for ladies, men and children. It consists of units including the areas of Noida, Ranjitnagar, Gaziabad and in Bangalore. Though all the units are in different areas of Delhi & surrounding areas, there is a smooth flow of work between all the units. In total there are 18 integrated state-of-the art garment production centers of Shahi. It has its own integrated unit of fabric mills, processing units, printing & dyeing, embroidery, wash & finishes. In the case of fabric capability Shahi has:
Integrated fabric base for both wovens and knits.
Both facilities equipped with German and Swiss state of the art processing Machines which ensures a high level quality output
Sourcing office in China providing access to diverse fabric bases in the Far East
Sourcing relationship with all leading mills in India like Arvind, Morarjee, Ashima, Vardhman and several independents in auto-loom sector.
Sarla Fabrics (Earlier called as Palmprint Textiles), the fabric process house is one of India’s foremost wet processing plant. All kinds of woven fabrics like poplin,
twill, canvas, gauge, corduroy, chiffon, moss crepe, Rayon, Georgettes, Nets, Velvets, Cambric, satin, Bosky, lycra etc. are processed to international standards. Prints like reactive, vat color discharge on reactive grounds & pigments apart from some special printing techniques like burnt out effects on polyester-cotton
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SHAHI EXPORTS PVT LTD. 2015 blends are achieved here. In all, the unit produces about
90,000 mtrs of
processed fabric per day. This puts Shahi at the top compared to the other export house. It cuts down the lead-time & prices.
Consistency: when a company is vertically integrated there is a lot of consistency in the fabric. As from the yarn stage to the weaving stage medium remains one. Therefore there is no involvement from outside. It eliminates
the
mediators,
excluding
the
provisions
of
wastages,
transportation costs etc.
Lead times: when every procedure is done under one roof, it abolishes the time required to transport the material from one place to another.
Reduced transportation cost: transporting a product from one place to another consumes time & money. For any value added service like washes, sequins a company send the fabric or garment to other locations but this is not a case with Shahi everything is done in house thus reducing transportation cost.
Specialized units Shahi has divided the Faridabad & Bangalore as woven & knits unit respectively. By making the units specialized it has help the company in achieving better & faster production. As the same work is repeated again, it helps staff to understand faster & better which has led to efficient utilization of resources & quality shipments.
QUALITY ADHERENCE Shahi relates itself with quality. Quality department places checks at all the required areas in all the production departments like, fabric department, cutting department, sewing department, finishing & packaging department. Other than this Q.A’s are also allotted for each specific brand within the organization. The
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SHAHI EXPORTS PVT LTD. 2015 Q.A department also takes active part in the sampling as it is the base on which order comes.
Focus on quality and a proven track record Short shipment : 0.50% ↔
↔
On time delivery : 98%
↔
Quality claims: Nil.
INTRODUCTION OF ERP – M3 The whole computerization system helps keep all the departments in link with each other. The software used is used for almost every function & process
Sampling
Costing
Order capturing (job order details, fabric, trims requirements)
Production (Cutting, stitching, finishing, packing, consignment delivery)
Shipment (boxes, box no., place)
Buyer’s PO entry (Invoicing & Billing)
Accounts/Finance (interlinking of bills, vouchers, payments, salary management, various allowances)
Time Management (leave records, calculation of bonus, reimbursement amount etc.)
The top management people can keep track of the status of production just by a single click. All departments can keep in touch with each other and can know the status of orders. Without this whole computerization system it would had been difficult for various departments to interlink with each other.
EFFECIENT PLANNING DEPARTMENT The planning department of the company has a very good team of members which very carefully studies each garment. After the complete analytical study 31
SHAHI EXPORTS PVT LTD. 2015 of each garment the team makes different combinations of folders & attachments in such a manner that it helps in faster & efficient production that too with minimal wastage of time.
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SHAHI EXPORTS PVT LTD. 2015 WEAKNESS CENTRALIZED CUTTING There is a centralized cutting in the head unit. Cutting for Delhi NCR production units is done at the head unit. At times priority is given more to some orders than that to the others. So, the cutting of the other orders is put to halt. At times when the production units are short of cut pieces they have to wait for the cutting department to work on their order, in turn wasting the time and delay in the production.
TECHNOLOGY Machines that are being used in the organization in the sewing department even in the cutting department automatic spreader and cutting machines are very old and need updating. Investment in the machinery is less.
TIME CONSUMPTION IN THE FINISHING DEPARTMENT (SAMPLING): The sampling in Shahi has to go within 3 days of receiving the tech pack. The pattern making, cutting & stitching is done within 2 days but the finishing department takes more than 1 day to finish a garment. This at times becomes a messy situation. As the sampling department is too big the finishing department & the workers are less compared thus a merchant has to always be present when his/her garment is in finishing department. This affects the efficiency of the company.
CENTRALISED MERCAHNDISING The production units are lacking of merchants to follow an order, all the work is handled and taken care by the merchants in the Faridabad unit. At times it becomes too messy to track one order as the merchant is sitting in Faridabad and giving instructions at Bangalore. This creates confusion as the merchant in Faridabad is not aware of what is going in Bangalore. This eventually increases the lead time as everything has to be sent to Faridabad merchants for approval and then sent back. As the lot approval has to be sent to Faridabad after the 33
SHAHI EXPORTS PVT LTD. 2015 approval it is again sent to the production unit, this activity is very time consuming. Even the P.O. is made by the merchant in Faridabad so if there is some shortage of fabric it has to be informed in Faridabad after which again a P.O is raised after which only the fabric is generated.
INEFFICIENT USE OF ERP The merchants & DMMs are not using the ERP system MOVEX efficiently. The system is capable of doing lots of things which can reduce the lead time and increase efficiency of an order, but this is not done. The system is used just to generate the P.O which is a part of the ERP. The merchandisers have not taken any classes for the same; they are working on hit & trial method or learnt something from their seniors.
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SHAHI EXPORTS PVT LTD. 2015 THREATS International competition China, which is the largest exporter, has substantially increased its market share. Countries like Bangladesh and turkey are very cost effective. China excels in the industry because of cheap labor, efficient management, higher productivity, government policies, strong research and development and industrial base.
OPPORTUNITIES Incentives and support from government for export oriented units: The government pays duty-drawback i.e. you get the excise duty and im port duty back. International presence: SHAHI has an international presence in the global market. It is well-renowned for its quality and facilities. It is one of the leading exporters of apparel.
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SHAHI EXPORTS PVT LTD. 2015
Functional Analysis Service: To make the samples of different stages on time for the approval of the buyer PURPOSE: TO ADHERE TO THE HIGH QUALITY AND PROVIDE ON TIME FABRIC & ACCESORIES FUNCTIONS Function1 To make samples according to the techpack at all stages Function 2 To get approval of the fabric/print, color by the buyer
Function 3 To coordinate with buying house team and the buyer Function 4 To strictly follow the time period allocated for submission of the desired sample Function 5 To handover the production file to production merchandiser team
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COMPETENCY 1. Highly skilled labor 2. Fully equipped infrastructure
1. High quality printing and fabric is used 2. Shahi has its own factory for printing and mill for fabric 3. Highly organized software for ordering i.e. MOVEX 1. Skilled personnel, like senior merchandiser or the DMM do this
1. Lacks team management.
work
and
time
Highly organized files are made with details like PO (PURCHASEORDER),TECHPACK,CONSTRUCTION SHEET,MEASUREMENT SPECS,MARKER,TEST,REPORT,FABRIC CARD,TRIM CARD,PDS SHEET ( PRODUCTION ,OB ( OPERATION BULLETIN)
SHAHI EXPORTS PVT LTD. 2015
DEPARTMENT STUDIED: SAMPLING Sampling procedure It primarily consists of: 1) Sample making 2) COORDINATION 3) SOURCING Also filing of techpaks, different patterns, making a cutting order, filling out submission forms, preparing requisition sheets(for fabric and accessory), downloading the purchase orders and filling out the necessary details. A file is handed over by the pre-production department for sampling and sourcing as the purchase order is received along with the approved proto sample. The fit sample is prepared and is sent to the buyer for approval. Simultaneously, the order is made for the trims & fabric for production. The fit is then approved and the final pattern is then sent for grading and marker. The costing is done accordingly. Follow up is done for the fabric which was ordered around 15 days back. After approval the GPT samples are also made by the sampling department for garment packaging test. The pre-production sample (PP sample) is made and sent to the buyer for approval. The production file for the order is made and is handed over to the production merchandiser for production along with the sealer sample and the sourced fabric and trims. BHANE is SHAHI ’s own online retail brand. The responsibility for BHANE is: 37
SHAHI EXPORTS PVT LTD. 2015
To source the fabric and trims for the production. To get approvals on the trims and fabric lots. To get the grading and marker planning done for the fit samples (which were given by the BHANE team). In the end, to make the PP sample and get it approved. Hand over the file to production manager for production along with the sealer sample and trims and fabric.
FINDINGS: SAMPLING DEPT.
The most complex stage is getting the approval from the buyer on fabric, shades, print and fit. Any delay at any stage can delay the entire order. The operators in the sampling department are very experienced and highly skilled. They are explained the construction of any new sample by the pattern master and the supervisor. IT plays a crucial role in the merchandising department. All information regarding the order status is fed into the ERP. This facilitates smooth flow in the department. The sampling department as a whole doesn’t work on TNA calendar.
The maximum time is spent in the procurement and approval of trims and fabric.
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