Introduction Part Introduction: 1.

.1 Bangladesh and RMG RMG (Ready Made Garment) Industry in Bangladesh: Bangladeshi Garment Industry is the largest industrial sector of the country. Though the history of Readymade Garment Industry is not older one but Bangladeshi clothing business has a golden history. Probably it started from the Mughal age in the Indian subcontinent through Dhakai Musline. It had global reputation as well as demandable market around the globe especially in the European market. After industrial revolution in the west they were busy with technological advancement & started outsourcing of ready made garments to meet up their daily demands. Many LDCs took that chance & started ready made garment export at that markets. As an LDC Bangladesh took this chance enjoyed quota & other facilities of them. Thus ready made garment industry started to contribute in our economy from late eighties (1977). The history of the garment industry dates back to 1977 when the first consignment was exported to then West Germany by Jewel Garments. The number of units, however, remained a meager 46 until the end of 1983. From a humble beginning the sector has thus made phenomenal growth over the last two decades, the number of units growing to around 4500. The RMG industry achievement is noteworthy, particularly for a country plagued with poor resource endowments and adverse conditions for industrialization. Exports increased from approximately 32 million US dollars in 1983/84 to 1.4 billion dollars in 1992/93. In 1987/88, the RMG export share surpassed that of raw jute and allied products. The figure further rose to 5.7 billion dollars in 2003/04, representing a contribution of about 75 percent of the countrys total export earnings in that year. The employment generated by the sector is estimated to be around 2.5 million workers. Several factors account for the outstanding successes of the RMG industry in Bangladesh. At the same time this industry had faced & till facing many problems also. BGMEA (Bangladesh Garment Manufacturers and Exporters Association) & BKMEA [Bangladesh Knitwear Manufacturer Exporters Association] a recognized trade body that represents export oriented garment manufacturers and garment exporters of the country. Starting in the late 1970s as a negligible non-traditional sector with a narrow export-base, the Ready-made garment industry emerged as a promising foreign exchange earning sector of the country by the year 1983. Since then, this sector has been acclaimed as the thrust sector of Bangladesh economy. BGMEA had only 12 members at the time of

its inception in 1977. It promotes and protects the greater interest of the garment sector of Bangladesh and its members, the number of which was about 3200 in July 2000.

1.2 Origin of the Report

This report has been prepared to make a study on An overview of the Modern Merchandising Management Techniques as a part of the fulfillment of the internship program of an industry required for the completion B.Sc (Hons.) in Knitwear manufacturing & technology. This survey research has been conducted to understand the Knitwear Merchandising and overall Management of Palmal Group of Industries. The report was prepared under supervision of Md. Jamal Uddin, Associate Professor and departmental Head of Knitwear Manufacturing & Technology (KMT) Technology at BIFT (BGMEA Institute of Fashion & Technology). Executive supervisor, S.K Aminur Rahman(Lulu), Manager (Merchandising) of Palmal Group of Industries. I am very much thankful to both of them for assigning me such types of project work. 1.3 Objectives of the Internship: The main objectives of the study are to see whether the RMG sector, Merchandiser is using modern merchandising techniques in order to assist the garment personnel with information and techniques. Relevant to decision making and day-to-day operational activities of a Merchandiser in order to objectives to be covered under the study are: 1. To acquire knowledge about the RMG (Ready Made Garments) Industry. 2. To acquire clear knowledge about other backward task related to RMG and Palmal Group of Industries. 3. To obtain practical knowledge on the systems, procedures or organizations structure, products, HR policies, Profiles of Palmal Group of Industries. 4. Compliance management issues and practice followed by Palmal Group of Industries. 1.4 Methodology: For smooth and accurate study every one have to follow some rules & regulation. The study impute were collected from two sources: 1.4.1 Primary sources: Practical desk work Face to face conversation with the different divisions personnel.

Direct observations Daily diary (containing my activities of practical orientation of companies)

1.4.2 Secondary sources: Annual report of companies Files & Folders Website Magazine and newspapers 1.4.3 The details of the work plan are furnished below: Data collection method: Relevant data for this project has been collected primarily by direct investigations of different companys personnel. Data sources: The information and data for this report have been collected from primary sources. The secondary sources of information are article reports, websites and different manuals. Some text books, journals, newspapers etc. have been consulted in order to build up the framework of the study. Data processing: Data collected from secondary sources have been processed manually and qualitative approach in general and quantitative approach in some cases has been used throughout the study. Data analysis and interpretation: Qualitative approach has been adopted for data analysis and interpretation taking the processed data as the base. 1.5 Limitations of the Report: On the way of my study, I have faced some problems that termed as the limitations of the study. I am working with the Merchandising division at corporate head office at Palmal Group of industries. There are few opportunities to know regarding direct knowledge of Production. Except Merchandising Procedure all the procedure I have faced different informational problem. In all respect following limitation and weakness remain within which I failed to escape by any means. These are follows: Responsibilitys Problem: From the very beginning I have responsibility to execute development sample for buyers requirement. I have passed my last 3 month with sampling program. I did not give up my responsibly for the companys profit. Budgeted time limitation: It was one of the main constraints that hindered to cover all aspects of the study.

Confidentiality of Data: Because of some divisional and confidential problem, I could not get enough information. Every organization has their own secrecy that is not revealed to others. While collecting data some company personnel did not disclose enough information for the sake of confidentiality of the organization. Data Insufficiency: It is a giant Group of industries of Bangladesh. Every factory keeps own information but all together no information found precisely. Especially there is a lack of information about the determination of the companies applying different costing method and the level of costing a pplications in these companies. Sufficient books, publications, fact and figure are not available. These constrains narrowed the scope of accurate analysis. If these limitations had not been there, the report would have been more useful and attractive.

Organizational Part Organization

2.1 Company Introduction Palmal group of industries emerged as one the pioneers in apparel business in 1984 from the soul initiative of the late Engr. Nurul Haque sikder the former and founder chairman and managing director of the group. Late engr. Mr .N.H Sikder delegated the authority of managing Director to his beloved son Mr. Nafis Sikder in 2001. Since then by the age of 21 years Mr. Nafis Sikder is holding the position of honorable Managing Director of the group and the company runs very smoothly under his dynamic leadership. Over a period of last nine years the company growth is more then 300%. 2.2 Objectives of the Company The main objective of the company is to become the best supplier of quality products in RMG sectors & create value to the customers. Management Approach Management consider Employee as capital Believe in responsibilities, Mutual trust & Respect Committed to create enabling environment Encourage employees creativity and achievement 2.3 Palmals core values Palmals core values are presented symbolically by A R I C E A stands for Accountability

R stands for Respect I stands for Integrity C stands for Commitment E stands for Excellence

2.4 Palmals Strengths Scope for career development. Country leading pay master in RMG sector. People developer. Having fully compliant factories. Considers peoples as Resources. Avoid discriminations to the best possible extent. Excising fair practices in Employment. Value good workers and avoid trouble makers. Assure workplace safety

2.5 Total Employees of Palmal Categor y of Employe es Staff Workers Total Number

1800 approx 20000 approx 21800 approx

Fig 1: Total Employees of Palmal Total Sewing machine: 7500 Area: 75, 00,000 Square feet including Production Floor, Store & Office Production Capacity: 55, 00,000 pcs. Per month

2.6 Location of corporate office: Office identity

Location

CHO MD and C.O.O, House 16, Road Merchandizing, PP and QA, IT 30, Gulshan-1, Admin and Compliance House SWB 20 Department (B), Road 08 Gulshan-1 Commercial Wal*mart House 2B, Road Merchandizing and sample 29, Gulshan 1 HRM, FHRO, Sweater Div, LPD House 2, Road and accounts and Banking, 21 , T&OD dept, Transporting and Gulshan 1 Maintenance and merchandizing (partially)

2.7 Palmals Manufacturing Units & Location: S. No. of Name Brief L Unit 1 Al-Hamra Garments Ltd. AHGL 1 2 Amazan Garments Ltd. AGL 1 Aswad composite mill Ltd 3 ACML 3 Kabirpur Aswad composite mill Ltd 4 ACML 1 Sreepur 5 Ayesha Clothing Co. Ltd. ACCL 4 6 Cortz Apparels Limited-1 CORTZ-1 1 7 Cortz Apparels Limited-2 CORTZ-2 3 8 Designer Line Pvt. Ltd. DLPL 1 9 10 11 12 13 14 15 16 Marina Apparels Ltd. Nafa Apparels Ext. Ltd. Nafa Apparels Ext. Ltd. NKK Knitwear Ltd. Palmal Dresses Ltd. Palmal Garments Hosiery Ltd. Palmal Styles Ltd.- Extn. Palmal Knitwear Factory MAL NAL NAL Ext. NKKKL PDL PGHL PSL-Extn. PKFL 2 1 1 1 1 1 1 1

Location/Address Malibagh Kabirpur, Savar Sreepur,Gazipur Ashulia, Savar Bagherbazar, Gazipur Naoghor, Gazipur New Jurai, Dhaka Dapa Idrakpur, Narayangonj London Plaza, Uttara Kutubari,m Faitullah, Narayangonj London Plaza, Uttara Latif Emporium, Uttara

17 18 19 20 21 22 23 24 25 26 27

Ltd. Progati Fashion wear Ltd. The Dacca Dyeing Garments Ltd. Safaa Sweaters Ltd. NKK Sweater Ltd. Aswad Composite Mills Ltd.- Knitting Palmal Garments Hosiery Ltd.-Knitting Palmal Garments Washing Ltd. Ayesha Washing Ltd. Palmal Knitwear Factory Ltd.-Emproidery Aswad composite mill Ltd Printing Pragati Metalex Ltd.

PFWL DDGL SSL NKKSL ACMLKniting PGHLKntiting PGWL AWL PKFLEmbroide ry ACMLPrinting PML Total

1 2 1 1 1 1 1 1 1 1 1 36

Wiseghat, Dhaka Moghbazar, Dhaka Ashulia, Savar New Jurai, Dhaka Sreepur,Gazipur Kutubari, Faitullah, Narayangonj Ashulia, Savar BASIC, Tongi Sreepur,Gazipur BASIC, Tongi

2.8 Product & Buyers: Palmal is mainly RMG focused 100% Export oriented Group of Industries Factory is expanding in the areas of knit composite and other backward linkage industries (Print, Embroidery, Washing and Composite etc.)

2.8.1 Major Buyers: Gap Inc. Wal-Mart Texibo Deacathi on Maxico Nygard SEARS TargetUSA KOHL'S New Wave GEORG E Primark Charmi ng Shoppe s Hudsao n Bay Mother Care Li & Fung Next Pea cocks HBI AMC ZARA Debenha ns ZXY Woolwort h Australia C&A Carters Oshkos h HBC Canada Bershka Lefties Kappa Bon Prix Adimiral

2.9 Trend of Growth: Starting with only one Garment Factory Palmal Group now 25 Garments factories, 2 Sweater Factories 2 Knit Composite Mills and some other backward linkage factories. Over a period of 27 years; Palmal has managed to create its own identity as one of the countrys leading foreign currency earner in the RMG sector through promoting RMG sector through promoting RMG sector rapidly. 2.10 Financial Growth: Fig 2: Financial Growth of Palmal Group 2.11 Recognition and Award: The Company has achieved valuable awards as recognition of performance in RMG sector. National: President Award (Achieved in two consecutive years) International: Best supplier award from Walmart (in 2004, 2005, 2006, 2007, 2008 & 2009) & Best Charming Shoppe in 2006. 2.12 Organizational structure of Palmal Group of Industries: 2.13 Layout of Palmal Knitwear Factory Ltd: Fig No#5 Layout of Aswad Merchandising Part Merchandising 3.1 An analysis on Merchandising Division of Palmal Group of Industries: In garment industry, merchandiser is the BRIDGE between the management (or) industry and the buyer. He have to look after every job like buying the raw material (which is required to finish the product), making the garment, finishing the garment, documentation (over all view), finally shipping. He is the responsible person to make the product. 3.2 What should do Modern Merchandiser? Understanding target customer Evaluate the importance of market segmentation Alternate Marketing Proper methods of data collection & Industry information sources. Forecasting for next year

Developing the proper Marketing mix (4 Ps) for their proper target markets Consider the present market competitors. Fig No#6 Modern Merchandise

3.3 Responsibilities of a Merchandiser: When an export order is placed to a Merchandiser, he has to schedule the following main functions Fabric & accessories requirement Calculation (Consumption) Costing Sourcing of fabrics & Accessories Garment analysis and distribution to the production unit and quality concern people Arrange shipping documents and final inspection.

3.4 Developments of order: Buyer used to advise an initial requirement to place a confirm order. In this regards buyer send an enquiry/product package with full details of an order. After having product package Merchandiser have to study all the papers very carefully and also study the samples. (If available) to quote the prices. Sometimes it is necessary to make sample first. Such samples are known as proto/counter/initial samples. Merchandiser should familiar with all the development procedure of an order. Sometimes buyer provides some idea of his/her requirement. In that case Merchandiser has to develop garments according to the buyer provided information in different way to present. Sometime buyer accepts the developed style or may change the developed style to place orders. So merchandisers have to think about development about new design and style of garments always. 3.5 Different types of samples: Samples are very important to get an order from buyer. There are different types of samples required to complete an order. They are follows1st Sample- Counter/ Initial/ 1st approval/ Proto

2nd Sample- Red seal/ Fit/ Size set 3rd Sample- Pre-Production (PP)/ Gold seal. 4th Sample- Production Sample 5th Sample- Wash Test Sample 6th Sample- Shipment/ Reference Sample There are another two types of samples required by some buyer i.e. photo-samples and salesman samples. Quality of the sample must be verified by the factory. Quality team as well as by the nominated quality team of buyer. All samples have to send to the respective buyer after checking properly. All samples have to submit to the buyers on time get approval on time to start production on time. Bulk production of a particular order is not possible to start without having PP/ Gold Seal Sample approval. 3.6 Order Sheet Analysis and Understanding Orders: After receiving an order details from buyer, Merchandisers have to study the order sheets very carefully. He has to compare following points of order sheet i.e. unit price, Order Quantity, Delivery Dates, Delivery Modes, Ordered Garments Quantity, Ordered Yarn/Fabric Quality, Order Number, Style Number, etc with the Earlier order confirmation. 3.7 Confirmation: Merchandisers have to understand the buyers requirement after go through the order details. In some cases, there may be some modifications pertaining to the specification in the order to dispatch on time and the right quality. He has to talk with the in-house veterans on the execution problems of orders, as the right information is required in decision making. If received order details comply with earlier order confirmation then Merchandiser have to distribute the order sheet to all concern departments i.e. Commercial, Planning, Store, Production, Quality and Sample. 3.8 Merchandising procedure to Execute an Order: If all merchandiser used to follow the below work-flow chart then it would be easier for them to keep control over his/her order from 1st day to the shipment of his/her order: Need to receive Product Package to do Preliminary Costing Sampling to confirm order Purchase Order (PO) Received, Analysis and Distribution to Respective Departments Need to Receive Color Standard Issue pro-forma invoice to get Export L/C Export L/C check properly and hand over to commercial Department to Proceed for execution

Prepare CSP or TNA After negotiation fabrics and accessories price need to make detail Pre-costing for Back to Back (BTB) approval
Samples Fabric Yarn/fabric suppliers source and Negotiation Lab Dip Submission & Approval Fabric Booking for PPS & Quality Approval Bulk Yarn/Fabrics Requirement Booking & order shade & Quality Approval for Bulk fabric Shade Band/ Dye Lot Approval Bulk Fabric InHouse Bulk Fabric Wash Test Approval Color Wise Swatch Board Making Accessories List of Accessories With Requirements Supplier Source & Price Negotiation Accessories Booking, Order & Development Arrange P/I for Fabrics & Accessories Collect Copy of BTB L/C Commercial Works

Proto/Initial/Count er Making & Approval Sales Man Sample if Required Red Seal/Fit/Size Set Making & Approval Photo Sample If Required PPS (Pre Production) Making and Approval Production S/Set Sample Making & Approval Wash Test Sample Making and Approval Gold Seal Shipment

Trim Card Prepare for Approval

Packing List & Invoice, Follow up Export Document Process

Quality Approval of All Accessories Bulk Accessories In-House Trim Card Prepare for Production Poly & Carton Order Poly & Carton InHouse

Table# 1 Pre-Production Meeting Test Cutting Bulk Production Follow Up Shipment Arrangement

3.9 Job List of a Merchandiser:

3.9.1 Inquiries: On receiving an inquiry(s) the merchandising Manager has to prepare a checklist and immediately forward all information to subordinate for the list for pricing. The merchandiser must make sure that the factory specializes in the item being priced and has worked with the client before. Selection of supplier should be based on their previous performance, efficiency, delivery, etc. If it is a new client then the merchandiser must discuss the inquiry(s) with the dept. head before sending out the inquiry(s). In case of a new factory, a factory evaluation should be conducted as per the set standards. 3.9.2 Quoting Prices: 3.9.3 Prices must be sent within 1-2 days of receiving the inquiry. All enquires must be entered in to the new development sheet. Based on the lowest price the merchandiser must order proto sample. Min. 2 pieces must be ordered. One sample for the customer and one office sample. Before quoting any prices to the customer. The merchandiser should get all prices approved by the Head of Merchandising or Managing Director. If renegotiation is required then involve the dept. head, Head of Merchandising and Managing Director so that the best prices are finalized with the factories. Final quoted price must be updated on the new development sheet. Proto Samples: Upon receipt of buyers specification, a thorough check should be conducted for precision. Obtain explanation from customer for anything considered vague. Forward the specification sheets to CAD division for Consumption and Pattern making with all the explanation of specifications & technicalities on as & when received basis & update records. Ensure timely availability of fabric. Follow-up with the supplier to provide the sample latest within 2 days for local accessories & fabrics, in case of imported items maximum 12 days.

Upon receipt of the sample from the sample division thoroughly check the styling, measurement (if any), stitching, quality of the fabric, fabric construction/GSM, hand feel, washing standard, finishing of the sample & accessories if any & ensure compliance of the samples as per customers specifications. The departmental head will give final approval. At least 3 pieces of each sample should be developed. One for merchandisers, one for the customer & one for the suppliers for future references. Prepare Proto Sample Checking Sheet & attach with the checklist. Put duly filled sample card on the sample. Forward the samples as & when received basis & advice customer accordingly with all the details of dispatch. Follow with the buyer for approvals/comments. Once approved, advice supplier as well as Head of Quality Control. Update Order Checklist.

3.9.4 Order Placement: Once an order is placed the merchandise manager should fill out a PO checklist. All missing information with regards to the PO will be forwarded to the customer within 1 day of receiving the PO. A complete PO package must be prepared and sent to the factory within 24 hours of receipt of order from customer with a copy of P.O. to Commercial Department. a. PO Package for Factory: A new PO package for the factory must include the following: Original PO sheet.

Spec. Sketch and workman sheet. Color print artwork, lab dip, original fabric swatch and original trim card. Original sample (If available)

Prepare a projected production plan & forward the same to the Head of Quality Control & to the related supplier. The schedule should comprise of expected dates for fabric Quality Check, ILC, IPC, MPC & FRI. Prepare a projected sample plan & forward the same to the related supplier with a copy to the Head of department. Within 1 day of receipt of a new order the merchandise manager must call for a pre-production internal meeting. The (a) (b) (c) (d) (e) (f) following people must attend this meeting: Head of Operation. Merchandise Manager. Acct. Related Merchandiser. Head of QA Dept. QA Personal. Internal QA Personal.

At the meeting the merchandiser will issue all information with regards to the order. This information includes: PO sheet copy. Spec sheet with all related information. Lab dip card, print artwork, trims card, etc. Original fabric swatch (If available) Proto sample.

3.9.5 Lab Dip / Print Strike Off: Follow up with our customer for lab dips if necessary. Upon receipt of the lab dips from the customer, immediately send a replica to the supplier. Follow-up with the supplier for prompt delivery of lab dips latest within 5 days.

Obtain maximum numbers of lab dips from the suppliers minimum 3 per color. Upon receipt of lab dips from the supplier, match lab dips against customer specifications via visual test or if required by the customer via lab test. Receive Lab Dips Format Sheet from our Lab & attach with the checklist, format attached. Head of department will give the final approval prior sending the samples to the buyers. Forward the lab dips to the customer along with the lab test report on as & when received basis. Make sure the buyer receives the lab dibs as per their requirement. Follow with the customers for approvals/comments. On approval inform supplier. Update Order Checklist. Update the excel sheet accordingly.

3.9.6 Size Set Samples: Follow-up with the supplier for prompt delivery of Size Set options with actual fabric, maximum 4 days for local fabric & maximum 12 days for imported fabric. Obtain 2 sets of samples of all sizes from the supplier. One for merchandisers & one for the customer. Upon receipt of samples from the supplier, match these against customer specifications & comments. Thoroughly check the styling, measurement (if any), stitching, quality of the fabric, fabric construction/GSM, hand feel, washing standard, finishing of the sample & accessories if any. Prepare size set format sheet & attach with the checklist, format attached. Head of department will give the final approval prior sending the samples to the buyers. Forward the size set options to the customers on as & when received basis. Ensure that buyer receives the samples as per their precise requirement.

Forward one or two pieces to the Head of Quality Control. Follow with the customers for approvals/comments. Upon receipt of approval advise supplier & Quality Control Head. Update Order Checklist. Update the excel sheet accordingly. Obtain actual production schedule from the supplier. Make sure the schedule is in accordance with the shipment date. 3.9.7 Sample Accessories: Follow up with the customer for sample accessories, if required. Upon receipt of buyers accessories, a thorough check should be conducted for precision. Obtain explanation from customer for anything considered vague. Upon receipt of the accessories from the customer, forward the same to the supplier on as & when received basis. Factories will be responsible for the selection of accessories supplier. We should forward no such recommendations to the factories. Follow-up with the supplier and quality control for prompt delivery of accessories for local max 4 days for imported max 12 days. Obtain 4 sets of samples of all accessories with at least 3 different options from the supplier. One for merchandisers, one for the customer, one for the quality control, & one for the suppliers for future references. Upon receipt of samples from the supplier, match these against customer specifications. Thoroughly check with the original/instructions received from the buyer, artwork, color, quality, sewing allowance, bar code, price tags etc. Prepare accessories format sheet, format attached. Head of department will give the final approval prior sending the samples to the buyers.

Prepare at least 2 synergies trim/accessories cards. One for buyer & one for merchandiser. Forward the accessories to the customers on as & when received basis. Ensure that buyer receives the samples as per their precise requirement. Follow with the customers for approvals/comments. After approval advise the supplier accordingly. Update Order Checklist. Update the excel sheet accordingly.

3.9.8 Pre-Production Samples: Follow-up with the supplier for prompt delivery of pre-production sample maximum 2 days. Obtain 4 sets of pre-production samples from the supplier. One for merchandisers, one for the customer, one for the quality control, & one for the suppliers for future references. Pre production sample in all size sets should be available to the merchandisers at least 5 days before the start of actual production. Upon receipt of samples from the supplier, match these against customer specifications. Thoroughly check the styling, measurement, stitching, quality of the fabric, fabric construction/GSM, hand feel, washing standard, finishing of the sample & accessories. Prepare PP sample format sheet, format attached. Head of department will give the final approval prior sending the samples to the buyers. Forward the pre-production sample to the customers on as & when received basis.

Ensure that buyer receives the samples as per their precise requirement. Follow with the customers for approvals/comments. Once approved advised the supplier. Update Order Checklist. Update the excel sheet accordingly.

3.9.9 Dye Lots: Follow-up with the supplier and quality control for the delivery of dye lot. Dye Lot should be available (6 X 6, for every roll) to the merchandisers at least 5 days before the start of actual production. Upon receipt of samples from the supplier forward the same to lab for lab test & match these against customer specifications. Thoroughly see the color standard, color fastness, shrinkage, GSM/construction, hang feel, fabric quality, knitting tension, Lycra etc. Receive Dye Lot sample format sheet from lab, format attached. Head of department will give the final approval prior sending the samples to the buyers. Update Order Checklist. Update the excel sheet accordingly.

3.9.10 Production: Once sampling is completed Head of concern Merchandiser forwards the order file to the Head of Quality Control along with the approved sample & a copy of projected production schedule. Make sure the file is forwarded at least 5 days before start of actual production. A meeting should be conducted between the Head of Merchandising Department, Concern Merchandiser, Head of

Quality Control & Quality Control Officer (Production) discussing all the details of order. Obtain an instruction sheet covering all the required information from the quality control officer & approve. Make sure any new comments are added into the instruction sheet. Regular follow up should be made with the suppliers & Quality Control regarding the status of production. Make sure the Quality Control Department conducts all the required inspections i.e. Fabric Quality Testing, ILC, IPC, MPC & FRI for every order. For large volumes make certain, there are more than 1 MPC being conducted by the quality control. Obtain daily production status from Quality Control & forward the same to IT for updating the Web Site latest by 11:00 every morning. Obtain reports of all the inspection conducted i.e. Fabric Quality Testing, ILC, IPC, and MPC & FRI for every order from quality control & keep a copy for record. Visit the supplier at least during one inspection. Make sure that FRI is conducted at least 2 days before the shipment date. Once FRI is OK, inform buyer. Update Order Checklist. Update the excel sheet accordingly. 3.9.11 Shipment / Salesman Samples: Inform Head of Quality Control for Shipment Sample. Obtain 2 sets of shipment samples from the Quality Control Department of all sizes covering all colors or as specified by the Customer. One or two pieces to be provided to concerned Merchandiser & all remaining to Manager Administration. In case where buyer requires shipment samples receive one complete set from Quality Control. Shipment samples should be available to the merchandisers the next day of FRI. Upon receipt of samples, conduct a thorough check & match these against customer specifications. Thoroughly check the getup, styling, stitching, fabric quality, fabric construction/GSM, hand feel, washing standard, finishing, & accessories.

Prepare Shipment sample format sheet. Head of department will give the final approval. Merchandiser's are required to give in writing to QC Head with a copy to Head of Operations & their departmental head the name of our customers to whom we normally sent shipment sample. If required, forward the shipment sample to the customers on as & when received basis. Ensure that buyer receives the samples as per their precise requirement. Forward one set of shipment samples to administration department. Keep remaining samples in the department for future use & maintain a register. Update Order Checklist. Update the excel sheet accordingly.

3.9.12 Delivery & Commercial Dept: Regular follow-up is essential to: Ensure goods are handed over to the forwarder. Ensure the forwarder books space/flight for timely delivery of goods. Ensure staffing of goods is conducted. Ensure the date of departure is as per the booking. Obtain vessel/flight details from commercial department & advise buyer. Receive acknowledgement of goods from buyer. Update Order Checklist. Update the excel sheet accordingly. 3.9.13 Documentation: Conduct regular follow up with commercial department & supplier for the timely delivery of all the below mentioned documents to the buyer. Packing List Commercial Invoice

GSP Country of Origin Certificate Annexure III for Mexico Shipment (must be obtained 1 month prior shipment) Country of Origin Certificate attested from Argentinean Embassy in India for Argentina shipment (must be obtained 1 month prior shipment) Bill of Lading/Master Airway Bill is sent from suppliers bank to buyers bank only. Inspection Certificate

All these documents are required to be sent to the buyer first via email or fax & then original via courier. Receive acknowledgement of documents from buyer.

Swatch Presentation: Swatch is a presentation of all the materials is (Fabric & Accessories) used for any specific style /order. Usually small piece of fabric and each piece of accessories are attached in board paper in a systematic manner. Swatch is very important for production line to make the correct construction of a garment and QC department ensures it. Concerned merchandiser should confirm/approve the swatch.

Fabrication, Trims & Store Part Knitting

4.1 Knitting Section: Hand and machine knitted fabric is created by interlocking a series of loops. The loops (stitches) are interlocked using a needle to hold the existing loop while a new loop is formed in front of the old loop. The old loop is then brought over the new loop to form the fabric. Knitting differs from weaving in that a single piece of yarn can be used to create fabric. The fabric consists of horizontal rows known as courses and vertical columns of loops known as Wales.

4.2 Knitting Section Organogram: Picture 1 4.3 Commonly used Yarn for Knit fabrics: 100% Carded 100% Combed CVC- It means Chief Valued Cotton that is composition of cotton & Polyester. Commonly usable compositions are 60/40, 70/30 PC- It means Polyester & Cotton that is composition of Polyester & Cotton. Commonly usable of compositions are 65/35, 70/30, 80/20. Melange- It is composition of Cotton & Viscose. Commonly usable compositions are 99/1, 95/5, 90/10, 85/15, 60/40. 100% Viscose Spandex Modal

4.4 FLAT Knitting Section: Generally collar and cuff of knitted garments is produced in this section there are flat knitting machines of the same type. There specifications of the machines are given below:
M/C DIA (IN INCH) 54 54 54 PRODUCTION CAPACITY/ M/C Run time (HOURS)

M/C BRAND

M/C ORIGIN

No. Of Machine

GAU GE

TOTAL NEEDLE

Matsuya Flying Tiger Shema Siki Total

Japan Taiwan Japan

19 6 7 32

14 14 14

740X2 740X2 740X2

IN COLLAR 450 Pcs 450 Pcs 450 Pcs

IN CUFF 1200Pcs 1200Pcs 1200Pcs 24 24 24

Table No: 2 Collar: Size: L: 45-47xW:09-10cmxT:3/4 /5 ply, 35-45 pcs /Kg (Depends on count, ply and tension of knitting. Cuff: L:37-39xW:3.8-4.0cmxT:2/3/4 ply, 60-70 pcs /Kg (Depends on count, ply and tension of knitting Circular knitting section:

There are two types of machines available in Aswad Composite Mills Ltd..These are single jersey and double jersey. 4.5 Machine Description of Circular Knitting Section:

Circular Knitting Machine Single Jersey Double Jersey Total no of M/C

Brand + Machine no. Terrot-01 Terrot-02 Terrot-03 Terrot-04 Terrot-05 Terrot-06 Terrot-07 Terrot-08 Terrot-09 Terrot-10 Terrot-11 Terrot-12 Terrot-13 Terrot-14 Terrot-15 Terrot-16 Terrot-17 Terrot-18 Terrot-19 Terrot-20 Terrot-21 Terrot-22 Terrot-23 Terrot-24 Terrot-25 Terrot-26 Terrot-27 Terrot-28 Terrot-29 Orizio -1 Orizio -2 Orizio -3 Orizio -4 Orizio -5 Orizio -6 Orizio -7 Orizio -8 Orizio -9 Orizio -10 Orizio -11 Orizio -12 Orizio -13 Orizio -14 Orizio -15 origin Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Germany Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy Italy

: Single Jersey, Double Jersey : 35 : 20 : 55.

Gauge In Inch 20 24 20 24 20 24 18 18 18 24 18 24 24 28 18 18 18 22 20 24 28 24 20 24 20 24 18 18 24 18 18 24 24 24 28 24 16 18 22 20 24 24 28 28 Dia In Inch 16 16 18 18 18 20 20 20 20 20 20 20 20 20 22 22 22 22 22 22 22 22 24 24 24 36 34 30 34 36 36 26 26 30 30 30 30 30 30 30 30 30 30 30 Feeder 51 51 57 57 57 64 64 64 64 64 64 64 64 64 70 70 70 70 70 70 70 70 76 76 766 64 60 54 60 72 72 84 84 96 96 96 60 60 96 96 96 96 96 96 Job Suitability Single Single Single Single Single Single Single Single Single Single Single Single Single Single Single jersey jersey jersey jersey jersey jersey jersey jersey jersey jersey jersey jersey jersey jersey jersey Prod/ day/kg 350 350 600 600 600 1800 1800 1800 1800 1800 1800 1800 1800 1680 1680 1680 1680 1680 1680 1680 1680 750 750 750 300 300 450 280 500 600 600 500 500 900 900 900 600 600 1000 1000 1000 1000 1200 1200

Single jersey Single jersey Single jersey Single jersey Single jersey Rib Rib Rib Rib Rib Rib Rib Rib Single jersey Single jersey Single jersey Rib Rib Rib Rib Rib Rib Rib Interlock Interlock Interlock Interlock

Orizio -16 Orizio -17 Mayer &Cie-1

Italy Italy Germany

24 24 20

30 30 30

96 96 96

Interlock Single jersey Single jersey

1200 1200 750

Mayer &Cie-2 Mayer &Cie-3 Mayer &Cie-4 Mayer &Cie-5 Camber - 1 Camber - 2 Camber - 3 Falmak -1

Germany Germany Germany Germany England England England Singapure

20 20 20 20 24 28 24 24

30 30 30 30 30 30 30 26

96 96 62 62 90 90 90 78

Single Single Single Single Single Single Single Single

jersey jersey jersey jersey jersey jersey jersey jersey

750 750 600 600 750 750 750 300

Table No: 3 Fabric: Knit fabrics are easy to sew and fit, require less pressing and care, and are comfortable to wear. Knit fabrics range from casual sweatshirt fleece to elegant stretch velvets and are available in a wide variety of fibers both natural and synthetic and a combination of the two. The degree of stretch varies from 20 to 35%. Select patterns which are designed for stretch knits only. These patterns require fabric that stretches a specific amount and the pattern envelope gives the degree of stretch. 5.1 Fabric manufacturing capabilities Aswad Composite Mills Ltd: Single jersey:100% cotton /cvc/tc (80-260 gsm) Ribs:100% cotton/cvc/tc (140-500 gsm) Varigated rib:100% cotton/cvc/tc (140-300 gsm) Pique:100% cotton/cvc/tc (140-260 gsm) Interlock:100% cotton/cvc/tc (180-300 gsm) French terry:100% cotton/cvc/tc (180-300 gsm) Fleece:100% cotton/cvc/tc 3 thread brushed back fleece(240-350 gsm) Thermal:100% cotton/cvc/tc (135-280 gsm). Slub yarn: 100% cotton slub jersey /rib/fleece/i/lock. All sort of aop (all over print) fabric. All sort of fabric with peach/sueding effect. All sort of melange fabric both in 100% cotton & cvc. All sort of fabric in 100% organic cotton. All sorts of fabrics with anti bacterial/microbial effects. All sort of fabric with stain/soil/water repellency effect. Burn out fabric in any kind of design.

5.2 Some fabric Prices collected From Aswad Composite Mills Ltd:
SL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Fabrication 100% Ctn Jersey Solid 140 Gsm 100% Ctn Jersey Solid 160 Gsm 100% Ctn Jersey Peach Finish 160 Gsm 100% Ctn Jersey AOP 160 Gsm White 100% Ctn Jersey AOP 160 Gsm Dyed 100% Ctn Jersey Feeder Stripe 160 Gsm 100% Ctn Jersey Auto Stripe 160 Gsm 100% Ctn Jersey Auto Stripe Peach Finish 100% Ctn Jersey Auto Stripe 200 Gsm 100% Ctn Carbon fin. Jersey Soilid 160gsm 100% Ctn Carbon fin. Jersey AOP 160gsm 100% Ctn Carbon fin. Jersey AOP 200gsm 100% Ctn Slub Jersey Solid 160gsm 100% Ctn Pique Solid 200gsm 100% Ctn Pique y/d auto 200gsm 100% Ctn 1X1 rib solid 200gsm 100% Ctn 1X1 rib AOP 200gsm W/body 100% Ctn 1X1 rib AOP 200gsm dye/body 100% Ctn 1X1 rib y/d feedrer stripe 200g 100% Ctn 1X1 rib Auto stripe 200g 100% Ctn 1X1 rib solid 220g 100% Ctn flat knit collar w/tipping(Boys) 100% Ctn flat knit cuff w/tipping(boys) 95/5 ctn/spdx jersey solid 160 gsm 95/5 ctn/spdx jersey AOP 160 gsm white 95/5 ctn/spdx jersey AOP 160 gsm dyed 95/5 ctn/spdx jersey feedre stripe 160g 95/5 ctn/spdx jersey solid stripe 180g 95/5 ctn/spdx jersey auto stripe 180g 95/5 ctn/spdx 1X1 rib 220gsm 95/5 ctn/spdx 2X2 rib 340gsm 80/20 cvc fleece inside brush solid peach 290g 80/20 cvc fleece inside brush solid peach 300g 80/20 cvc fleece inside brush AOP 300g 100% ctn Fleece inside Brush peach fin. 300g 100% ctn French Terry 280gsm Price/Kg $ 6.50 $ 6.10 $ 6.50 $ 7.10 $ 7.80 $ 7.95 $ 9.25 $ 9.65 $ 9.02 $ 6.50 $ 7.60 $ 8.20 $ 6.60 $ 6.20 $ 9.25 $ 6.32 $ 7.30 $ 7.98 $ 8.02 $ 9.54 $ 6.20 $ 0.40 $ 0.20 $ 8.25 $ 9.05 $ 9.85 $ 9.63 $ 7.92 $ 9.30 $ 7.92 $ 7.50 $ 6.90 $ 6.90 $ 6.50 $ 7.15 $ 6.27 Date 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov 14-Nov Remarks Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Per pc Per pair Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Combed Quality Valid till 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11 5-Dec-11

Table No# 4

Picture No# 2&3

Picture No# 4&5 Trims and Accessories used in garment: Trims & Accessories cover all the items used in the garment except the basic fabric. There are hundreds of items used to manufacture the garments, Proper selection of trims and its quality are very important

for styling, otherwise the garment may be rejected or returned by the customers. Following is a part of list that covers some names of the trims & accessories:
S.L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Name of accessories Hang Tag Price Tag Barcode Sticker Joker Tag Pocket Flasher Size sticker Plastic/Metal Clip Metal Pin Safety Pin Back Board Photo Board Tissue Paper Hanger Hanger Sizer Single Poly Poly Sticker Blister Poly Blister Sticker Cellulose Tape S.L 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Name of accessories Spun Sewing Thread Filament sewing thread Elastic Sewing thread lurex Sewing thread Main Label Size Label Care Label Flag Label Patch Label Lace Velcro Tape Shoulder Tape Mobilon Tape Metal Tag Badge Plastic Logo Lather Patch Printed Logo Embroidery Logo S.L 39 40 41 42 43 44 45 46 47 48 49 50 51 Name of accessories Rebet Eyelet Buckle Stopper(Cord lock) Hook & Eye Ring Hanger Loop Twill Tape String Draw Cord Piping Cord Weaving Belt Seam Sealing Tape Satin Bow

Table No# 5 Quality of trims as well as proper selection of trims is very important; otherwise the garments may be rejected returned by the customers. Stores:

7.1 Different Types of Store: After checking quality fabrics, trims and accessories are sent to store. There are two kinds of stores available in Palmal: There are four Central stores for Palmal. Palmals every factory has Floor wise Individual Store. Goods received by the central store first and then distributed to the stores of different floors against requisition slips. The central store receives goods against Invoice according to purchase order (PO). Then the received goods are weighted and counted whether those are some in weight or number according to the packing list.

The business report or document of any purchased from abroad or imported i.e. Called Invoice. Its a document given by the exporter what kind of goods they have supplied. 7.2 An Invoice contains: L/C number. Product Description. Product Quantity. Unit Price. Port of Destination. Bill to. Ship to etc. 7.3 Number of goods is stored: Fabrics. Trim and accessories. Stationary. Buyers sample. Colors. Yarn. Spandex. Others.

Sampling Part Sampling: The samples decide the ability of an exporter. The buyer will access the exporter and his organization only by the samples. If the samples are of good quality and with reasonable price naturally the buyers will be forced to place the order. So it is essential that the samples should be innovative and with optimum quality. The purpose of sampling is not only to get bulk orders and also give some additional benefits to the exporters. By doing sampling the exporter can estimate the yarn consumption for developing the fabric, a clear idea on costing more ever the manufacturing difficulties. Besides by doing sampling only the exporter can optimize the processing parameters for mass production, which helps to avoid all kind of bottlenecks. All these works are carried

out by the sampling department, which us led by a sampling in charge. 8.1 Garment Sampling: Garment samples are inevitably important and are developed tested before starting the bulk production. It means making a sample of the garment /fabric which requires to be sold. Sampling is one of the main processes in Garment Industry and it has a vital role in attracting buyers. Because the buyers generally places the order after they are satisfied with the quality of the samples. 8.2 The Details Attached to the Garment Sample After the confirmation of order, each sample sent to the buyer has the following details attached to it, with the help of a tag. It contains the details pertaining to both, what the buyer has demanded and what supplement fabric/trim etc they have used (if applicable). Ref no. Color Fabric Composition Description Quantity Style no/ Size Store There are many sampling department in Palmal. But as the Palmals merchandiser is the person who is interacting with the buyers regarding samples and other requirements, this sampling department will work under the supervision of merchandising department. Also as the samples are to be made according to the buyers price ranges and quality levels, merchandiser has to advise sampling department suitably. 8.3 Persons involved in Sampling: We have to send many samples to buyers. They are: Salesmen samples or promotional samples Proto samples or fit samples Counter samples or reference samples or approval samples Wash test samples Photo samples Fashion show samples Pre-production samples Production samples Shipment samples

8.4 Sampling Workflow of Palmal:

Fig No#9 8.4.1 Development samples or enquiry samples: When Palmal works with some buyers continuously, we will have to keep on sending samples to them very often. Whenever they have enquiries, buyer may need samples. Buyers may like to see the garments in a new fabric. For one enquiry, they may need samples in different fabrics to choose from. If they want to develop new style in new fabric, then also we will have to send these samples. 8.4.2 Salesmen samples or promotional samples: Some buyer needs these samples for getting the orders from their customers. If the buyer is having 7 salesmen in his office, then the buyer will ask us to make 7 samples in each style. The salesmen will book the orders from their customers, by showing these samples. Buyer will place the order to us accumulating the quantities. If have sent samples for 5 styles, some times, may get orders for all 5 styles, 3 styles or 1 style. Some times, may not get order for even a single style. Expected sales may not be possible, due to poor quality, unsuitable colors, improper measurements, unmatched prints or embroidery, etc of salesmen samples. 8.4.3 Photo samples or fit samples:

These samples are to be made after getting the order sheets. These samples are needed to check the measurements, style and fit. So they can be made in available similar fabrics but in the actual measurements and specifications. Some buyers may need these samples if they want to print the photos of garments on photo inlays, packing box, hang tag, etc. These samples may be needed for local advertisement or buyers promotional occasions. 8.4.4 Counter samples or reference samples or approval samples: These samples are to be made in actual fabrics with actual trims. If the order is for 3 colours, buyer may need samples in any one color and swatches (fabric bits) in other colors. These samples should be strictly as per the specifications in the order sheets. Have to get the approval for these samples from the buyer before starting production. After getting the approval, the approved samples should be followed in production. Some times, buyer may comment on fabric, measurements, making, etc. We have to follow his comments carefully in production. 8.4.5 Wash test samples: If these samples are sent before starting production and if get some remarks or comments on these samples, can correct them in production. But some buyers will need to send these samples from production before shipment. In this case, these samples may be considered as shipment samples. If these samples are rejected due to some complaints, then will not have any excuse and will be in real trouble. 8.4.6 Pre-production samples: These samples are almost like approval samples. They have to be made in actual production fabric with actual bulk trims. They will represent that the production will be like these samples. 8.4.7 Production samples: These samples are to be sent before shipment to get the buyers confirmation for shipment. Hence these samples are needed to be perfect in all manners. Buyer may check these samples for everything or anything. Some times, they may do wash test also. We should not get any remark or comment. Have to get only OK from the buyer. Then only can ship the goods and can be sure of getting payment. So these samples are to be sent with more and more care. 8.4.8 Shipment samples:

These samples are to be sent after shipment. They should be sent in actual packing with all labels, tags, etc. (Generally these samples will not be tested by buyer for anything. And even if get some comments from buyers, can save by saying that these samples were sent from the left over garments after the shipment; hence there might be some mistakes. If expect any comments in these samples, it is better to inform the buyer during sending these samples).

Cutting Part Cutting Section:

9.1 Cutting: The fabric is cut with the help of cloth cutting machines suitable for the type of the cloth. These can be band cutters having similar work method like that of band saws; cutters having rotary blades; machines having reciprocal blades which saw up and down; die clickers similar to die or punch press; or computerized machines that use either blades or laser beams to cut the fabric in desired shapes. 9.1.1 Cutting Equipment: Cutter Spreader Table Sticker Machine Plotter Digitizer 9.1.2 Cutting Capacity per Day: Total average: 90,000 pieces per day at PKFL. 9.2 CAD: CAD technology that has made prominent changes in the way of Palmal garment manufacturing was done in previous eras. Today all large garment manufacturing companies have developed CAD system to do the process of garment manufacturing. CAD is an abbreviation for computer-aided design. CAD is computer software that controls the production of garments. In CAD the designer designs the garments by using CADs Tools. Any suitable software likes Adobe Photoshop, Adobe Illustrator, and Corel Draw etc and in CAM the cutters, sewers, graders and markers control the process of development. The designer creates 2-D of design in CAD as software numerically controls the machine that generates the production.

There are several advantages of CAD over manual method of designing and production of garments: The expense and time is reduced in a considerable manner when compared to the laborious manual work of designing. Designing can be done from anywhere as the designers are able to control the process from remote locations as well. The data can be easily stored, transmitted, and transported through computer files. The designs can be easily customized and personalized as corrections and editing can be done at any time without significant delays or cost increases. 9.3 Grading: The purpose of grading is to create patterns in different standard sizes. Pattern sizes can be large, medium and small or else there are standard patterns of size 10, 12, 14, 16 and so on for different figure and statures sizes. This is generally how we get S M L XL XXL sizing. Pattern grading by manual method is a cumbersome task because the grader has to alter the pattern on each and every point from armhole, to neckline, sleeve cap and wrist etc. by using CAD it is much easier and faster. 9.4 Marker Making: The measuring department determines the fabric yardage needed for each style and size of garment. Computer software helps the technicians create the optimum fabric layout to suggest so fabric can be used efficiently. Markers, made in accordance to the patterns are attached to the fabric with the help of adhesive stripping or staples. Markers are laid in such a way so that minimum possible fabric gets wasted during cutting operation. After marking the garment manufacturer will get the idea of how much fabric he has to order in advance for the construction of garments. Therefore careful execution is important in this step. Computer marking is done on specialized software. In computerized marking there is no need of large paper sheets for calculating the yardage, in fact, mathematical calculations are made instead to know how much fabric is required. 9.5 Spreading: With the help of spreading machines, fabric is stacked on one another in reaches or lays that may go over 100 ft (30.5 m) long and hundreds of plies (fabric pieces) thick. 9.6 Cutting Required: Pattern and marker must be checked by the quality control personnel check points are as follows:

 9.6.1

Measurement Gradation Allowances Pattern parts missing Mixed parts Pattern shape Direction of pattern in the marker Pattern alignment with respect to the grain line Poor line marking Marker too wide than fabric width Notches and drills marks omitted Mismatch checks and strips Overlapping Too thick line or double line marking Invisible line marking Marker incorrectly positioned on the lay Others Requirement of Cutting: Bundling with bundle card Numbering Cut panel checking Wrong size in the bundle Fused parts checking Cleanness Proper raking/ storing Proper issuing prefer test cutting than bulk cutting Reporting

9.7 Sequences in Cutting Room:

Fig No#10 Sequence of Cutting Room 9.8 Below shown the organogram of cutting section:

Fig No#11 Cutting Section Organogram

Sewing & Finishing Part Sewing Section 10.1 Sequence of Sewing: (T-shirt) 10.2 Lay out of Basic T-shirt:
Process No 01 Process Name Shoulder join Name Over lock M/C 01

02 03 04 05 06 07 08 09 10 11 12 13

Neck piping Vertical tuck Shoulder over lock Shoulder piping tuck Label preparation Label attach Sleeve rolling Sleeve join Side seam Sleeve horizontal tuck Sleeve vertical tuck Body hem

Flat lock Plain Over lock plain plain plain Flat lock Over lock Over lock plain Plain Flat lock

01 01 01 01 02 01 01 02 03 01 01 01

Table No# 6

Picture No# 6 10.3 List of Sewing: There is a list of sewing machines by using whose it is possible to make garments properly 1. 2. 3. 4. 5. 6. 7. Lock Stitch Machine/ Plain/ Regular Sewing Machine Two Needle Lock Stitch Machine Chain Stitch Machine Double Chain Stitch Machine Overlock Machine Safety Stitch Over Lock Machine Flat Lock Machine Sewing Machines

8. Flat seamer with the Cylinder Bed. 9. Buttonhole Machine 10. Button Sewing Machine 11. Bar Tack Machine 12. Blind Stitch Machine 13. Kansai Special Machine 14. Pocket Sewer M/C.

Finishing Section: Finishing division is well equipped with most modern steam blowing and vacuum table and conveyer/ hand-held type needle and metal detector. This final section to make the product saleable condition and the finishing processes should be controlled to achieve the quality target. 11.1 Organogram of Finishing Section of Palmal Group of Industries: 11.2 Finishing equipments: Finishing equipments installed in PKFL are given below: Name of equipment Normal iron Steam iron Passing machine Ironing table Button attach machine Button hole machine Tag machine Table No# 7 11.3 Ironing: There are two types of pressing machines: Normal iron Steam iron Quanti ty 15 03 01 15 02 01 15

There are two kinds iron used in Palmals Factory. One is normal iron and the other one is steam iron. The normal irons are generally used for cool iron and the high temperature steam iron is used for good

finishing of the knit items to increase aesthetics and remove any unnecessary crease in the garments. There is some boiler which providing steam in the steam iron and steam are provides through steam lines set with the ceiling of the finishing section. 11.4 Labeling: There are also two kinds of labeling machine in the finishing floor. Through these kinds of machine stickers and labels are attached with the garments. There is a label cutting machine which is used for cutting the extra thread of the table. All garments are folded and packed according to buyers distribution instruction. After packing garments are put into carton according to size color and style. 11.5 Packing: A carton must indicate the following things:
PO. No. Style No. Quantity carton Item name Packing dimensions size Color Gross weight Net weight Net Net Weight Country of Origin Per : 56584 : KW-1256 : 30 pcs : Mens Polo : 65 X 60 X 50 CM : spectra green : 16 Kg : 15 Kg : 12 Kg : Bangladesh.

Table No# 8 Quality Part Quality 12.1 Quality Management System of Palmal: A number of systems, measures and techniques are used in Palmal so that only quality goods are produced in first place & defects do not originate at all. If they occur at all, there are scope to take corrective action so that they can are eliminated in the preliminary stage & would not repair. Quality Management System generally employs the

following measures, technique to ensure that only quality goods are produced: Fabric quality concerning all check done by the skill inspector Inspect all incoming, in-progress & final goods to insure quality of goods Ensure that all patterns & grading are okay Inspect marker & check Consumption Inspect spreading, cutting & numbering Ensure if relaxation times was given to knit fabric Install in-line inspector in the sewing lines Install system to monitor in production line Inspect 100% goods delivered from sewing line Inspect the table quality passed garments with statistical technique Control reject goods so that they do not mix-up with quality passed goods Control repairable goods, washable goods so that they can be double checked to ensure quality Inspect goods with right equipments & in right conditions Make repeat inspection of garments prior to poly-bagging Inspect poly-bagging and assortment Final inspection is conducted prior to shipments of goods Impart training to QA personnel so that they can easily identify defects and understand the causes of defects Make continuous improvement plan and implement them

12.2 Fabric Inspection Procedure: Fabric Inspection: The quality of a final garment depends on the quality of a fabric when it is received as a roll. Even the most outstanding manufacturing methods cannot compensate for defective materials. Normally, we inspect 10% of the rolls we receive and evaluate them based on a four-point system. This way, we can avoid fabric related quality problems before it is put into production. 12.3 Objectives of inspection: Fabric Inspection is an important aspect followed prior to garment manufacturing to avoid rejects due to fabric quality and facing with unexpected loss in manufacturing. Fabric inspection is done for defect rate, fabric construction, fabric weight, shrinkage, end to end or edge to edge shading, color, hand feel, length/width, print defect and appearance. Fabric inspection ensures to minimize the rejection of cut panels or rejected garments due to fabric faults. Cutting inspected and

approved fabric ensures not only finished garment quality but also reduces rejects, improves efficiency and timely deliveries. 12.4 Four Point System of Fabric Inspection: Four Point System is based on penalty points given to a defect found when inspecting fabric. Rule is as below: Not more than four penalty points may be given for any single defect. No more than four penalty points may be given to one linear yard/meter regardless of the number of defects found within one yard/meter. For continuous defects such as shading between side, centre side, side to side shading, end to end shading no penalty points are assigned but the roll is graded as second quality and must be reported to mill for replacement. Penalty Points 1 Point 2 Points 3 Points 4 Points Table No# 9 The system is recommended for use where smaller -defects are critical and for fabric of wider widths and also this is very suitable for sample inspection. Identify type of defects: generally, three main categories of defects are classified for the garment standards as per defect guide. The categories of defect are as follows: Critical Defect: A defect that is likely to result in hazardous or unsafe conditions from an individual consuming or using the product or that contravenes any mandatory regulations. Major Defect: A defect there is like to result in failure, reducing the usability or service ability of the product. Most of the cases garments are rejected.

Length of the defect 3 inches or less Over 3 inches, but less than 6 Over 6 inches, but less than 9 Over 9 inches

Minor Defect: A defect that does not reduces the consumption or sale of the product nevertheless a workmanship error beyond the quality standard. 12.5 Factor to be consider for classification of defect: Location of defect Size of the defect How visible the defect from 18 distance End use of the product Factory Quality Control Procedure:

Figure: Defect checking system (4 point) Table No# 10 12.7 Nature of Garments Defect: Product variation is a normal result of the manufacturing process. It is impossible in make each garment exactly the same. In order to establish acceptable levels of variation; Tolerances should lie slated as a pan of product specifications 12.7.1 Omission:
Part omitted Jasure omitted Incut buttonhole

Ressing omitted

12.7.2 Stitch Formation:

Broken thread Insecure backstitch Irregular stitch gauge Loose of tight thread Misallocated reinforcement Needle chew Open Seam Raw edge Skip stitch Uneven stitch line Wrong thread

12.7.3 Seam Formation:

Raw edge Misaligned seam Flared Seam Puckered Seam Run Off Twisted Seam

12.7.4 Cleanliness:
Finishing streaks Soiling Spots & stains Hanging thread Sewn-in waist

12.7.5 Others:
Dimensions out of Tolerance Exposed Notches Caught Place Excessive Fullness

12.7.6 Finishing Defect:

Finishing Pressing Folding Packing

12.7.7 Position/ Alignment/ Incorrect Component:

Misplaced Component Component size/shape not to spec Excessive Fullness

12.7.8 Zippers:
Slider Chair/ tooth Defect Top/Bottom Stop Tape/ Card Defects

12.7.9 Threads:
Thread color Thread Quality

12.8 Inspection by AQL method:

12.9 Final inspection of garments: Before shipment the final evaluation of any garments lot is called final inspection to final audit. Final inspection consists of inspecting finished garments from the buyers point of view and the final inspection occurs after garments are packed in box. If it is done after garments are packed, then proper size and style markings on the boxes can also checked. In any case there should be a list of points to be checked in a garments including of a finished garments. The purpose of final inspection is conduct by the buyers representative. Most of the time the senior quality control personnel from the buying house or in the industry are performed the final inspection. Some times the buyer engages third party inspection team. 12.10 Purposes of final inspection: Buyers can understand about the quality standard of the merchandise being purchased. Last opportunity to know the quality status of the garments lot for both buyer and supplier. It is an important part of quality control in garment industry.

It is an obvious condition from buyer end to conduct the final inspection.

12.11 Sequence of final inspection of garments: Top perform a reasonable we have to maintain a sequence of different steps of the inspection are as follows: Packing list verify / compare with P.O. sheet: Before start the final inspection we have to check the final status of the lot with P.O. sheet and packing list. Are as follows: quantity color size Packing etc.

12.12 Inspection preparation: To get accurate result with must have well preparation for final inspections are as follows: Required facilities are: Sufficient space Sufficient light Inspection table Clean, noise free environment Sufficient helping hand etc. 12.13 Required tools and equipments: Packing list Measuring tape Arrow sticker Marker pen Highlight pen Weight scale Purchase order sheet Quality specification sheet Reference sample Pick glass Approved swatches Finding and reporting format etc. Metal detector 12.14 Carton checking: There are some important points to be checked during inspection check points are:

Quantity or carton Quality of carton: ply of carton Size of carton Strength of carton Color of carton etc. Shipping marks Main mark Side mark Merchandise description Strapping/trapping 12.15 Carton selection: From the total number of number of carton, we have to select sample carton and garment sample will be picked from those carton. The methods of carton selection and points table considered are as follows: Methods of carton selections Points to be considered 12.16 Packing and packing check: Now we have to open carton from those selected carton and check the packing methods used for the lot and the packing used whether it is as per specification. Check points are as follows: 12.16.1 Packing check: Position of garment inside the carton Inner carton Protector Poly bag Assortment Quality of garment Packing materials must be checked with approved sample. How it is used of attaching. 12.16.2 Points to be considered: Color Size Style 12.17 Garments checking: Selected sample must be checked 100% check points are as follows:

Appearance Materials conformance Conformity of style Color shade Logos Workmanship Finishing Cleanness Damages Weight Fitness Record of defects non- conformances: Measurement checking Defective sample draw for reference Carton fill up Sticker and signature Reporting. Planning & Control Part

Production Plan and Control: Production Plan and Control means process the production successfully within a target time with target quantity. Its control a planning layout that is machine, manpower and other supported production. The Production Plan follows some terms is given bellow: Machine and Manpower Layout: What is the number of machine and manpower is worked in the line to complete all process within a specific time or target time. Estimate Process of Garments: Calculate and select the number of process to make complete Garments. Standard Minute Value: Standard Minute Value shortly is stand and used SMV. One process is completed some minute averagely one garments is completed with some time that is called SMV. It is calculated on operating time by process to process. Target per Hour: The numbers of Garments produce per hour. One hour (60 minutes) divided total SMV into working manpower or total number of operation is calculated total pieces per hour.

Basic Production Time: Shortly is called BPT. Total SMV divided by total manpower equal to Basic Production Time (BPT). The total number of operation or process of a Garments is taken specific time to make to a manpower or operator is let BPT. Whenever test cutting is run then study, check and adjust planning SMV and target and submit this report to manager of planning. Studying SMV find out the lacking of production step proper action to run and fast constantly and smoothly the production.

13.1 Layout Chart: Different machine in different operation is worked by one operator. There is a planning layout chart against different operation. SL. NO. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Machine O/L F/L F/L O/L M/L M/L M/L O/L O/L M/L S/N F/L S/N M/L Operation Name Cuff Joint Cuff Top Stitch Edge Binding &Cut Edge stitch Mark placket position Cut placket Back front match Shoulder joint Neck piping Cut piping Tack placket Back neck piping & cut Tack piping end Cut piping Manpowe r 01 01 01 01 02 01 01 01 02 02 02 01 01 01

15 16 17 18 19 20 21 22 23 24 25 26 27 28

S/N S/N S/N M/L O/L O/L O/L F/L S/N O/L S/N S/N M/L B/M

Back neck top stitch Front neck top stitch Insert joint Sleeve match Sleeve joint Side joint one side Bottom joint Bottom hemming Side Tack 2 Side joint Bottom Tack Sleeve tack & top stitch Button Position Mark Button attach Total Manpower = Table No# 11
OBSERVED CYCLE TIME 1 1 4 2 0 2 0 2 1 4 1 9 3 1 3 1 8 2 19 0 4 1 3 2 0 2 1 5 1 4 2 1 2 0 6 1 3 2 2 1 9 7 1 3 2 2 2 1 8 1 3 2 3 2 0 9 1 4 2 2 1 9 1 0 1 3 1 9 1 8

02 02 05 01 02 02 02 02 01 02 01 02 01 01 46

13.2 Study of SMV:

Order No: . NO 01 02 03 04 05 06 07 08 Operation Name Sleeve Hem Royse Cut (M/L) Sleeve Match (M/L) Front Raglan Joint F & B Part Match (M/L) Back Raglan Joint Back Placket Over lock Back Match & slv level joint Neck Trimming (M/L) Neck Binding Neck Binding tack Placket lower tack Two Placket Tack Front Lower gathering Back Lower gathering Part Part Av g.T. 13. 4 20. 6 19. 7 Ba sicT 16. 21 25 24 SM V 0.2 7 0.4 1 0.4 0 Tgt/H r. 222 146 150

09 10 11 12 13 14 15 16 17

Lower & Top Part Match F & B Two Lower Part Joint F & B Two Lower Part Joint Front Part Middle Binding

18

19

20 21 22 23 24 25 26 27 28 29 30 31

Sleeve Opening Tack Side Tack Side Tack Side Joint Side Joint Sleeve Tack Top Side Bottom Hem Loop Make & Cut Loop Tack Mark Button Position Button Attach

Total:

16. 16

Table No# 12 SMV= Basic Time for Processing/60 minute i.e., SMV=16.21/60 = 0.27 Total Piece/Hour= 60 minute/SMV x Total operation or Total manpower = 60/16.16 x 30 = 3.71 x 30 = 111 Piece/Hr. 13.3 Total SMV & Line Target with Manpower:
Operator Helper Total Manpower SMV STD.Target/Hr. 100% 1St Day Target for Line/Hr. 2nd Day Target for Line/Hr. 3rd Day Target for Line/Hr. Other Day target for Line/Hr. BPT (Basic Piece Time) 23 8 31 9.31 200 15% 25% 35% 60% 0.30 30 50 70 120

Table No# 13

BPT= SMV/Total manpower or Total operation = 9.31/31 or 9.31/30 = 0.30 or 0.31 minute/piece 13.4 Pre-Production Meeting: It is a meeting called by General Manager before start the production. There are some important person has to come to the meeting. In his meeting people discuss on a particular order to execute the order easily. Knitting manager, knitting master, knitting in-charge, Dyeing Manager, Dyeing In-charge, Cutting In-charge, Production Manager, quality In-charge and Other Concern people have the participate in this Meeting. They are discussing on:

13.5 What is GSD? GSD is the worlds leading methods management system and is a Predetermined Motion Time System (PMTS), designed specifically for the sewn products industry. Its primary function is to rationalize manufacturing methods and to produce an accurate evaluation of the time required to perform a specific task or operation. Without measurement there can be no management, and, whether in design, manufacturing, sub-contract or retail, GSD provides the means to accurately evaluate labor costs prior to committing valuable resources. More than this, it brings about a change in outlook, a commitment to best method and a real basis for communication - at all organizational levels, even breaking through barriers of language. The system consists of two parts, the inherent GSD database itself, which forms the heart and integrity of the system, and the GSD for Windows software, which is the vehicle that drives the data. Through its application, you are able to create a unique library of information to meet your own needs and reflect your unique environment. GSD is used to create the information required for product costing, preproduction planning, scheduling, delivery and profitability - and because the system is predictive in its nature, each of these functions may be undertaken prior to making a commitment. 13.5.1 Improving garment manufacturing efficiency through GSD In these times of rising costs, increasing competition, and falling sales prices in the garment industry, it is of particular importance that productivity is maximized at the highest degree of economic efficiency. Even ultra-modernized plants by themselves offer no guarantee for continuing competitiveness, unless the necessary production costs are thoroughly analyzed, evaluated and reduced to an absolute minimum.

A computer program, known world over as GSD (General Sewing Data), allows companies to analyze and plan every single operation in the sewing of a garment, whether it be a machine or a manual operation. It permits companies to cost their products, with a high level of accuracy, prior to the start of the production process. Auxiliary modules facilitate the evaluation of the cutting room as well as production planning, ticket printing and operator training. Results from previous installations of this program in Germany, Austria and Switzerland clearly show that productivity was increased on average by 11 per cent, in some cases, by as much as 24 per cent at the factory level, and over 100 per cent on individual operations. There exists a belief in the industry that production costs can be effectively reduced by building faster and faster sewing machines. However, this is not necessarily true, and increases in machine speeds have minute effects on the actual sewing times. In addition, when one considers that only 20-30 per cent of the time of an average operation is actual sewing machine time, while 70-80 per cent is handling time, the small gains from increasing machine sewing times themselves are trivial compared with the expense of the super-sewing-machines. As against this, GSD deals with all parts of the production process. It is not just another time measurement system. Whereas time measurement systems use timed production sequences for an operation, GSD uses independent, tested, synthetic time standards and is open to any changes in method, machine or material the operator may wish to make. GSD was tested independently by academic and industrial institutions on three continents and was found accurate to five per cent in 95 per cent of the cases tested. The program is already in use in over 700 clothing production plants in 32 countries all over the world. The savings through use of this system are indeed phenomenal. For instance, in a production facility employing 100 workers with an average cost of US$ 0.15 a minute, if you can save just 1.5 minutes (five per cent) in the production of a garment taking 30 minutes to produce, your savings amount to: 100 x 480 x 0.15 x 1.5/30 = US$ 360.00 per day or US$ 8,640.00 per month. Or you can reduce the production price of your product from US$ 4.50 to US$ 4.28. Or you can produce five per cent more garments a day with the same labor force (1680 garments instead of 1600). 13.5.2 Users The GSD Family is growing all the time and already includes some of the most globally recognized names from the retail sector and in manufacturing. Triumph International (Austria), Gasser Modelle

(Austria), Hanro of Switzerland, Gardeur Dieter Janssen (Germany), Kitz-Pichler Trachten, Gottstein GmbH (Austria), Goldhaubenwebe (Austria), Sariana (Austria), Daks Simpson (UK), Austin Reed, Giza Textiles (Egypt), Sevel SAE (Egypt), Bagir (Israel), Laura Ashley, Pringle Knitwear, Aquascutum, L. L. Bean. Land Rover, Russel Corp., Berlie, Austin Rover, Speedo, Vanity Fair, Jaeger Tailoring, and many more.... GSD is internationally renowned, and is represented in over 70 countries worldwide. Cost Benefits That Begin Immediately For hundreds of clients, GSD has delivered immediate productivity improvement and cost savings. Results show: Productivity improvement averaging a substantial, measurable of the direct labor payroll; Return of investment: Six to eight month, based on a 100operator plant; Enhanced engineering productivity with same or reduced staffing; Improved pre-costing through GSDs unique skeleton costing process;

Independent industry tests have proven in hundreds of scenarios: With GSD, payback begins immediately. 13.5.3 Simplicity and Accuracy with GSD GSD is a computerized standard data system developed specifically for the sewn-products industry. The statistically validated elemental code, constructed from a unique MTM (Methods Time Measurement) CORE DATA, represents a simple, universal language which is easy to learn and communicate. The same simple codes can be fine-tuned to meet with any level of engineered methods, thus ensuring fast, consistent application with MTM-level accuracy. This is true whether the system is used in high-fashion or large volume/repetitive manufacturing environments. 13.5.4 Payback in Six Months Used as a predictive management tool, GSD provides the Just in Time (JIT) technology so critical in todays highly charged manufacturing environment. In case after case, GSD has helped facilities realize payback/return on investment (ROI) as soon as the system is installed. In fact, GSDs cost-savings have been measured up to 26 per cent. (Realization of a six-month payback requires only a three per cent saving in direct labor payroll.) An intangible benefit is the awareness that management, supervisors and operators gain

due to changes in design, material, volume, technique and quality, all of which can be quantified in the GSD specification. GSD delivers: Substantial time reduction for style costing and style introduction Rapid quantification of changes in design, materials, volume, technique and quality Improvement in overall consistency rates Reduction of off-standard/average payments Evaluation and justification of new equipment methods Setting and pre-engineering of consistent and accurate rates Elimination of lost business caused by over pricing of jobs Elimination of lost income caused by under pricing of jobs Overall management of manufacturing standards database Data transfer capabilities to other systems Efficiency of operator training via method specification Reduction of clerical time

13.5.5 Ultimate Costing System Efficient methods, accurate labor standards and preseason style costing are fundamental to the success of a sewn-products facility. GSD provides fast, accurate rates in a fraction of the time compared with other systems. For every facility and style change option, GSD allows pre-costing of various stages of manufacturing. The system provides reliable, measurable information on: Optimum Standard Allowed Minute values Production-run efficiency (overall & component) Costing per style Performance related indices Right the First Time Technology.

GSD allows the facility to manage and manipulate data and obtain right the first time decisions for any phase of a production run. The system is also exceptionally easy to use - with no loss of accuracy. Commercial Documentation Part Documentation:

Being a supply chain service provider, we have the knowledge and expertise to provide total logistic and transportation solutions to our customers. Our qualified personnel work in close association with leading freight forwarders, air and shipping lines at various locations. In addition, we can provide you specific value added services by pre advising all shipments on a regular basis with tentative arrival dates 14.1 Factory Evaluation: For the better quality and performance, we take an extra step to source the most appropriate vendor for our customers. Before selection we thoroughly evaluate Factory on the basis of the following assessment: . Factory design . Financial performance . Factory equipment & machinery . Factory productivity . Quota export performance . Prevalent working procedures . Factory past performance . Technical competency . Factory personnel competency . Factory reputation . Level of professionalism

In addition, we have formulated a Factory Evaluation Form, which is filled out for every factory and then based on the physical, and financial assessment includes creation of a rating grade to the factory. This rating grade can determine the quantity of Garments it can manufacture for "Decent Printing and Design" as well as whether it has adequate production capacity. These services can be further extended in locally reliable fabric sources, dyers and printers, which ultimately promote quality of merchandise. This is an important process as no factory should be over booked, which causes delays in delivery and impacts production quality negatively. Factory assessments are an ongoing process. Decent Printing and Design is constantly investing time and effort in finding new factories, which can meet the requirements of client in terms of fashion and price. 14.2 CTPAT Audit: Documents need to be checked during factory evaluation Written security policies. Records of all movement of raw materials/ components in & out to & from storage.

Movement record register of all packed/ finished cartons & partially filled cartons from the packing area to the separate packed goods storage. Movement record register of all packed goods/ cartons in and out from the packed goods storage Movement record/register for dangerous goods/chemicals from storage. Enclosures (doors, windows, gates, fences, etc) checklist / checking record by security guards per shift. Empty truck checking records. Duty roster of security Guards of last 3 months. Visitors log book / records. Log book /records for incoming/outgoing goods with both weight & quantity details. Report / record of shortages & overages in incoming & outgoing goods/accessories. In the event of staff turnover, are there procedures & documents to control the return of keys or security access code changes? Previous job verification record of employees before hiring. Security training program & record.

14.3 Commercial: Commercial section is the important section for a RMG industry. All kinds of monetary transactions, business and shipment formalities are done through commercial department, store and buyer. It keeps and records all the business and other documents. It maintains liaison with the govt. national and international trade organization. 14.3.1 The work of commercial department at a glance: Taking necessary registration and certificates. Maintaining documents and files. Doing monetary transaction. Preparing commercial documents. Negotiate with the bank. Keep liaison with the government and trade organization.

RMG sector is the main export sector Bangladesh. Its production is partly depended on import. So, for meeting both purposes it needs

monetary document issued by the bank on an applicant undertaking to made payment to make payment to make payment up to a stated amount of money within a prescribed time limit against stipulated documents. 14.3.2 Commercial Activities: Merchandisers have to have the knowledge about basic terms and conditions of Master L/C and also about the procedure of commercial Departments activities. After having an Export L/C Merchandiser should check the main points/clause of the L/C very carefully. UCPDC- Uniform Customers & Practices for Documentary Credit- First Published by International Chamber of Commerce in 1933 and revised version published on 1954, 1962, 1974, 1983, 1993, the latest publication revised and formally commenced on 1 July 2007 ,called the UCPDC600.

14.4 Parties to Letters of Credit: Buyer/Importer/Applicant (Opener): Applicant which is also referred to as account party is normally a buyer or customer of the goods, who has to make payment to beneficiary. LC is initiated and issued at his request and on the basis of his instructions. Issuing Bank (L/C Opening Bank): The issuing bank is the one which create a letter of credit and takes the responsibility to make the payments on receipt of the documents from the beneficiary or through their banker. The payments have to be made to the beneficiary within seven working days from the date of receipt of documents at their end, provided the documents are in accordance with the terms and conditions of the letter of credit. If the documents are discrepant one, the rejection thereof to be communicated within seven working days from the date of receipt of documents at their end. Seller/Exporter/Beneficiary: Beneficiary is normally stands for a seller of the goods, who has to receive payment from the applicant. A credit is issued in his favor to enable him or his agent to obtain payment on surrender of stipulated document and comply with the term and conditions of the L/C. If L/C is a transferable one and he transfers the credit to another party, then he is referred to as the first or original beneficiary.

Advising/Notifying Bank: An Advising Bank provides advice to the beneficiary and takes the responsibility for sending the documents to the issuing bank and is normally located in the country of the beneficiary. Confirming Bank: Confirming bank adds its guarantee to the credit opened by another bank, thereby undertaking the responsibility of payment/negotiation acceptance under the credit, in additional to that of the issuing bank. Confirming bank play an important role where the exporter is not satisfied with the undertaking of only the issuing bank. Negotiating Bank: The Negotiating Bank is the bank who negotiates the documents submitted to them by the beneficiary under the credit either advised through them or restricted to them for negotiation. On negotiation of the documents they will claim the reimbursement under the credit and makes the payment to the beneficiary provided the documents submitted are in accordance with the terms and conditions of the letters of credit. Paying/Reimbursing Bank: Reimbursing Bank is the bank authorized to honor the reimbursement claim in settlement of negotiation/acceptance/payment lodged with it by the negotiating bank. It is normally the bank with which issuing bank has an account from which payment has to be made. Second Beneficiary: Second Beneficiary is the person who represents the first or original Beneficiary of credit in his absence. In this case, the credits belonging to the original beneficiary is transferable. The rights of the transferee are subject to terms of transfer.

14.5 Types of Letter of Credit: 1. Revocable Letter of Credit L/C: A revocable letter of credit may be revoked or modified for any reason, at any time by the issuing bank without notification. It is rarely used in international trade and not considered satisfactory for the exporters but has an advantage over that of the importers and the issuing bank. There is no provision for confirming revocable credits as per terms of UCPDC, Hence they cannot be confirmed. It should be

indicated in LC that the credit is revocable. If there is no such indication the credit will be deemed as irrevocable. 2. Irrevocable Letter of Credit L/C: In this case it is not possible to revoke or amended a credit without the agreement of the issuing bank, the confirming bank, and the beneficiary. Form an exporters point of view it is believed to be more beneficial. An irrevocable letter of credit from the issuing bank insures the beneficiary that if the required documents are presented and the terms and conditions are complied with, payment will be made. 3. Confirmed Letter of Credit L/C: Confirmed Letter of Credit is a special type of L/C in which another bank apart from the issuing bank has added its guarantee. Although, the cost of confirming by two banks makes it costlier, this type of L/C is more beneficial for the beneficiary as it doubles the guarantee. 4. Sight Credit and Usance Credit L/C: Sight credit states that the payments would be made by the issuing bank at sight, on demand or on presentation. In case of usance credit, drafts are drawn on the issuing bank or the correspondent bank at specified usance period. The credit will indicate whether the usance drafts are to be drawn on the issuing bank or in the case of confirmed credit on the confirming bank. 5. Back to Back Letter of Credit L/C: Back to Back Letter of Credit is also termed as Countervailing Credit. A credit is known as back to back credit when an L/C is opened with security of another L/C. A BTB credit which can also be referred as credit and counter credit is actually a method of financing both sides of a transaction in which a middleman buys goods from one customer and sells them to another. The parties to a Back to Back Letter of Credit are: The buyer and his bank as the issuer of the original Letter of Credit. The seller/manufacturer and his bank, The manufacturer's subcontractor and his bank. The practical use of this Credit is seen when L/C is opened by the ultimate buyer in favor of a particular beneficiary, who may not be the actual supplier/ manufacturer offering the main credit with near identical terms in favor as security and will be able to

obtain reimbursement by presenting the documents received under back to back credit under the main L/C. The needs for such credits arise mainly when: The ultimate buyer not ready for a transferable credit The Beneficiary does not want to disclose the source of supply to the openers. The manufacturer demands on payment against documents for goods but the beneficiary of credit is short of the funds 6. Transferable Letter of Credit L/C: A transferable documentary credit is a type of credit under which the first beneficiary which is usually a middleman may request the nominated bank to transfer credit in whole or in part to the second beneficiary. The L/C does state clearly mentions the margins of the first beneficiary and unless it is specified the L/C cannot be treated as transferable. It can only be used when the company is selling the product of a third party and the proper care has to be taken about the exit policy for the money transactions that take place. This type of L/C is used in the companies that act as a middle man during the transaction but dont have large limit. In the transferable L/C there is a right to substitute the invoice and the whole value can be transferred to a second beneficiary. The first beneficiary or middleman has rights to change the following terms and conditions of the letter of credit: Reduce the amount of the credit. Reduce unit price if it is stated Make shorter the expiry date of the letter of credit. Make shorter the last date for presentation of documents. Make shorter the period for shipment of goods. Increase the amount of the cover or percentage for which insurance cover must be effected. Substitute the name of the applicant (the middleman) for that of the first beneficiary (the buyer).

14.6 Export Operations under L/C: Export Letter of Credit is issued in for a trader for his native country for the purchase of goods and services. Such letters of credit may be received for following purpose:

For physical export of goods and services from Bangladesh to a Foreign Country. For execution of projects outside Bangladesh by Bangladeshi exporters by supply of goods and services from Bangladeshi or partly from Bangladesh and partly from outside Bangladesh. Towards deemed exports where there is no physical movements of goods from outside India But the supplies are being made to a project financed in foreign exchange by multilateral agencies, organization or project being executed in India with the aid of external agencies. For sale of goods by Indian exporters with total procurement and supply from outside Bangladesh. In all the above cases there would be earning of Foreign Exchange or conservation of Foreign Exchange.

Banks in Bangladesh associated themselves with the export letters of credit in various capacities such as advising bank, confirming bank, transferring bank and reimbursing bank. In every case the bank will be rendering services not only to the Issuing Bank as its agent correspondent bank but also to the exporter in advising and financing his export activity. L/C definition shows that payment has to be made within a certain period, so, based on time limit L/C is of two Types: At sight L/C Deferred L/C

At sight L/C provides much benefit to the beneficiary as the beneficiary gets the payment as soon as he ships the goods but in case of deferred L/C the beneficiary receives the payment by the sighted in the L/C terms and conditions. When the shipment is made for export the exporter has to submit some documents as sighted in the L/C. this is also called the terms and conditions of L/C. 14.7 Payment conditions or documents that are required to be submitted to bank: Commercial invoice

Buyers purchase order Weight & packing list Insurance covered by openers Bill of lading / Air way bill Inspection certificate Certificate of origin issued by Chamber of commerce or such body. Utilization declaration If quota facility then VISA If exports is to EU then GSP certificate

14.8 Documentation for Export: Which the goods are being sent, these documents will include some or all of the following: consular invoice, commercial invoice, certificate of origin, bill of lading, packing list, health certificate, import license, and insurance certificate. In general, their purpose is to provide the foreign Customs authority with a complete, detailed description of the goods so that the correct import duty can be levied. Sometimes they are required for the administration of exchange control regulations or import quotas and depending on the product, to safeguard public and animal health and prevent the spread of plant diseases. Statistical information about a country's imports is also based on these documents. Failure to complete the forms properly may lead to a fine and/or unnecessary delay in clearing the goods through foreign Customs. If the information given is found false, heavier fines may be imposed and/or the goods confiscated. The preparation of such documentation is one of the tasks of an export firm's or of a shipping agent, known as a freight forwarder, whose services may be employed for a fee. In addition to the documents required by the foreign country, the exporter must also provide an export declaration. 14.9 Consular Invoice:

This is a form, usually obtainable only from the Consulate of the importing country, on which the exporter or its agent must enter a detailed description of the goods being shipped. Certain countries require such a form. On the consular invoice, there is space not only for the name of the goods but also for any marks carried, the number of the items, their weight, the value and origin of the goods and a declaration that the information given is correct. There must be no erasures or "strike-over" in typing, pen-and-ink changes, or additions. In some countries, the goods must be described in terms of the customs tariff of the importing country and the tariff number of the items given. Most countries requiring consular invoice also insist that the document be "legalized" that is, have its accuracy sworn to by the exporter or its agent at the consulate of the importing country. 14.10 Commercial Invoice: Commercial Invoice is the export firm's invoice, addressed to the foreign importer describing the goods shipped and the total price that it must pay. However, some countries require the commercial invoice to be prepared on their own forms. Such forms are sometimes called customs invoices. Countries that require a consular invoice also require a commercial invoice as additional proof of the details of the export shipment. Countries that do not require a consular invoice use the commercial invoice as the document upon which the import duty is based. The exporter may also sometimes be asked, when providing an export quotation for the foreign buyer, to supply a pro forma commercial invoice. This document shows the foreign buyer what the commercial invoice will look like if the foreign buyer places the order. The exchange authorities in the foreign country sometimes require it before an import license is issued.

14.11 Certificate of Origin: Certificate of Origin is a document, which indicates the country in which the goods were produced, is required whenever preferential duties are claimed. Sometime, consular legalization of the document is

necessary. Also, certification of the document by a Chamber of commerce is required. 14.12 Shipping Marks: The purpose of these marks is to identify your goods from those of other shippers. They should be made boldly, with waterproof and saltproof ink, so that they can always be easily read. They should be in black, with red or orange for dangerous cargo. The marks should be in both English and the language of the country of destination. The final destination point should be made to stand out so that the package can be easily identified with the corresponding shipping documents and easily located for customs clearance and delivery. To discourage theft, blind marks can be used that do not reveal the contents of the package. Product descriptions or trademarks should not be shown. The shipping marks must be exactly the same as those shown on the commercial invoice, bill of lading, etc. Some countries indicate exactly the shipping marks to be used. Such specifications include the size of lettering, their position on the containers, the method of applying the marks (brush or stencil), and the types of weights and measures to be used. Some countries such as India require that the import permit number be marked on the packing case. In the case of cautions for handling, exporters are encouraged to use universally recognized cautionary marks such as a wineglass on the commercial invoice and bill of lading, etc. for "fragile", as well as words. All cautionary marks, international handling symbols, destination should be very distinct, on three surfaces of each crate. 14.13 Marks of Origin: The exporter, as well as marking the container, must ensure that the goods being shipped abroad have the required marks of origin. 14.13.1 Compulsory Marks of Origin: Many countries require that all imported goods, and the packages in which they come, be marked in a conspicuous place with the name of the country of origin. Exceptions are usually made for goods that cannot be marked, those that cannot be marked without injury, and those that can only be marked at prohibitive cost.

14.13.2 Corrective Marks of Origin: Other countries require that a mark of origin be placed on imported goods, if its absence would create a false impression about the origin of such goods. This can occur if the goods show the place of manufacture with the same name as that of place from the importing country (e.g., Toronto, Japan, compared with Toronto, Canada) or when the label contains only the name of the importer or import agent, rather than that of the foreign manufacturer. 14.14 Marking Methods: Each country has regulations governing the manner in which imported goods should be marked, including the size of the letters. Some countries require, in addition to the name of the country of origin, the words "Made in" or" Produced in". Sometimes, the language of the importing country must be used. As well as being legible and conspicuous, the mark should be nonerasable. 14.15 Labeling for Export: The exporter must also comply with any labeling requirements for its product in the importing country. These often exist for prepared goods, beverages, and pharmaceutical and toilet preparations. Usually, the label must show the manufacturer's name and address, a list of the ingredients, the weight or volume of the contents, and other relevant information. Often, the required descriptions must be in the language and weights and measures system of the importing country. In some countries, certain products must be registered with the appropriate government department and the registration number shown on the label. 14.16 Delivery to the Dockside: One way is to use the service of a freight forwarder The shipping company's representative checks the number of items, their condition, shipping marks, weight, and perhaps size, and then issues a "dock receipt". The exporter keeps this dock receipt until the goods are loaded aboard the ship. After this has been done, the shipping company issues an ocean bill of lading to replace the dock receipt. Another way to deliver goods to the ship is by rail. Small shipments are delivered to the local railway freight depots where they are

consolidated with other shipments for the same port. Large shipments go by carload lots and are usually loaded at the exporter's premises. At the port, the shipping line has usually leased or has been assigned a shed in which all the box cars containing goods for the particular ship are unloaded. The railways assume the responsibility for unloading the boxcars, and checking and placing the goods in the warehouse ready for loading abroad ship. The cost involved is included in the railway freight rate. 14.17 Loading the Goods aboard Ship: When the exporter's goods have been unloaded at the dockside, it is the shipping company's responsibility to ensure that they are properly loaded aboard the correct ship. Usually, a stevedoring firm does this on behalf of the shipping company and the cost involved is already included in the freight rate paid by the exporter. With the goods safely loaded aboard the ship, the shipping agent issues a "clean" ocean bill of lading to the exporter so long as no shortages or damaged crates, boxes, etc. have been discovered. If damage had been noted, the exporter can still obtain a clean bill of lading by signing a letter of indemnity that absolves the shipping line of any responsibility for the damage should insurance claim be made. The bill of lading, in the required number of copies, is evidence of ownership and is negotiable - it is the key document that is surrendered to the foreign importer upon payment for the goods or acceptance of a time draft as specified in a letter of credit. 14.18 Truck Transportation: Truck transportation between Malaysia, Singapore and Thailand is quite convenient as it permits warehouse-to-warehouse transportation and reduces the handling involved in transshipment. However, it is more expensive than by freight train for heavy shipments. Most exporters, if trucking suits their need, prefer to use commercial trucking companies to transport their goods. 14.19 Rail Transportation: There are three types of railway freight rates: LCL ("less than carload lot") this is the most expensive rate and applies to small shipments based on a minimum charge for 100 lb.

CL ("carload" rate) this is the cheapest rate and applies to shipments 30,000 pounds or more. "Pool-car rate" - this is an intermediate rate and involves the combining of shipments from different shippers. transportation is most suitable for his shipment if: The goods are heavy. The distance to be traveled not economical by truck. The rail line is located fairly close to his premises and to the port of shipment for goods destined overseas.

Rail

14.20 Export Transportation and Shipment: Quick!!! Because foreign buyers, in making decision to purchase; will be taking into account the exporter's delivery time. Fast delivery is obviously an important "competitive edge" for an exporter. Of course, the actual delivery date will depend on stocks, production as well as shipping time. Carefully: Because the foreign buyer wants to receive the goods intact. In this way, the exporter gains customer satisfaction and avoids trouble and expenses of filling insurance claims and reshipping all or part of the order. Economically: Because the freight cost can be a substantial part of the final export price. The lower the freight cost, the more competitive the export price quotation.

14.21 Freight Forwarder: Some exporters make their own transportation arrangements. Others delegate this task, on a fee basis, to specialized firms known as "Freight Forwarders". These can be either ocean freight forwarder or air forwarders. Such a firm can offer a variety of services: Advising on the best routes and relative shipping costs Booking the necessary space with the shipping or airline

Arranging with the exporter for packing and marking of the goods Consolidating shipments from different exporters Handling Customs clearance abroad Arranging marine insurance for the shipment Preparing the export documentation Translating foreign language correspondence Scrutinizing and advising on ability to comply with letters of credit.

According to its size, number of branches overseas, etc., a freight forwarder will offer all or only some of these services. However, all freight forwarders will advise on the booking of shipping space. Many freight forwarders handle both exports and imports and may also act as Customs brokers.

14.22 Import Quotas: An exporter may find that the foreign country restricts mostly imports not only by means of tariffs but also by qualitative measures. These usually take the form of import quotas for each particular product. Once the quota for the period has been filled, no more import licenses are issued. 14.22.1 Types of Import Quota: There are three main types of import quota in use today: Unilateral quotas. Negotiated bilateral or multilateral quotas. Tariffs quotas. Unilateral Quotas: These are quotas set by a country without pervious consultation or negotiation with others. Such a quota may be global or allocated. If it is global, the total volume of goods that may be imported is set regardless of the countries of origin or the importers and exporters involved. If it is allocated, the permitted volume of imports is allocated among countries of origin and private traders in accordance with some previous pattern. Negotiated Quotas: In this case, the importing country, after negotiations with the government of each exporting country, or with groups of its exporters, allots shares of the quota to each country. Often, with a bilateral

negotiated quota, the exporting country is given the responsibility for issuing licenses to its exporter. Sometimes a negotiated bilateral quota goes under the guise of a voluntary export quota - for example, the "voluntary" quotas that Japan places on its exports of man-made textiles to the United States. With a multilateral quota, the restriction is placed on the total amount of imports only, with no restriction as to source. Tariff Quotas: With this type of quota, a country allows a certain amount of a product to enter at a given rate of import duty or even duty free. Any excess amount is subjected to a much higher rate of duty. Cost Evaluation Part Methods of Costing:

There are various methods or types of costing, but the basic methods have been applied. The basic methods are to collect and analyze the expenditure according to the elements of costs and to determine the cost for each cost unit. 15.1 Techniques of Costing: In addition to the above methods of costing, there are certain techniques of costing, which are used along with any of the above method. These techniques serve the special purpose of managerial control and policy. Some of the important techniques are as follows: Standard costing: This connotes the setting up in advance of definite standards targets of performance and the expression of these standards in monetary terms. Actual performance is measured against these standards and differences are extracted to indicate where corrective action is needed. This technique is a valuable aid in cost control. Budgetary Control: Closely allied to standard costing is the technique of budgetary control. A budget is an expression of a companys plan in financial form and budgetary control is a technique applied to the control of total expenditure on materials, wages and overhead by comparing actual performance with planned performance. Thus, in addition to its use in planning, the budget is also used for control and co-ordination.

Managerial Control: In this technique, separation of cost into fixed and variable (marginal) is of special interest and importance. This is so because managerial costing regards only variable costs as the cost of products. Fixed cost is treated as period cost and no attempt is made to allocate or apportion this cost to individual cost centers or cost units. It is transferred to costing profit and loss account of the period. This technique is used to study the effect on profit of changes in volume or type of output. 15.2 Elements of Cost: A cost is composed of three elementsmaterials, labor and expenses. Each of these three elements can be direct and indirect, i.e., direct materials and indirect materials, direct labor and indirect labor, direct expenses and indirect expenses. The following chart shows the various elements of Costs: The labor and machine hour bases generally require additional clerical work and expense. We need to run smoothly by expert employment and to recruit effectively. Separately is directed different section by one expert chief / in charge or manager. One Manager and Merchandiser know how produced the Garments and about all critical path/function as like fabric construction, dyes, chemical, wash, overall fabric quality, sample development, pattern, cutting, sewing, finishing process and quality, bar-coding system, overall proficiency of accountability, planning and follow up. 15.3 Factory Overhead Cost: Factory Overhead generally defined as indirect materials, indirect labor and all other factory expenses thats can not conveniently be identified with nor charged directly to specific jobs or products or final cost objectives, such as government contracts. Other terms used for factory overhead are burden, manufacturing expense, manufacturing overhead, factory expense and indirect manufacturing cost. Products are produced with different methods. Now we can discussed specifies allocation bases to be used in variety of circumstances and applied one or more methods of allocation for producing different style of Garments that are state bellow: 15.4 Physical Output: When manufactures only one product the physical output is satisfactory otherwise unsatisfactory. The physical output or units of production base is computed as follows: Estimated Factory Overhead Factory Overhead per unit = Estimated Units of Production

If the several products manufactured are alike or closely related, their difference being merely one of weight or volume, application of factory overhead can be made on a weight, volume, or point base. The weight base applies overhead according to the weight of each unit of product as follows: Let, Estimated Expense or Factory overhead cost is $300,000. Product A units 20,000 Pcs 0.25 KG 5,000 KG $18.18 $90,900 $4.55

Estimated Number of Manufactured Unit weight of product Estimated Total weight produced Estimated factory overhead per KG ($300,000/16,500) Estimated factory overhead for each product Estimated factory overhead per unit

B 15,000 Pcs 0.30 KG 4,500 KG $18.18 $81,810 $5.46

C 20,000 Pcs 0.35 KG 7,000 KG $18.18 $127,26 0 $6.36

15.5 Direct Materials Cost Base: In some companies, a study of past costs will reveal a correlation between direct materials cost and factory overhead. The study might be shown that factory overhead has remained approximately the same percentage of direct materials cost. The material-related cost base has only limited use, because in most cases no logical relationship exists between the direct materials cost of a product and factory overhead used in its production. Estimated Factory Overhead Percentage X 100 of overhead per direct materials Estimated Compliance Part Compliance Management: Compliance means comply with the law of the land. As regards of Garments Industry compliance implies to obey the labor laws. ILO convention, UNCRC and buyers code of conduct in running factory. Compliance is the adherence to rules, regulations, standard test, or other requirements. cost=

Compliance of RMG factories is key requirement for most of the reputed global garments buyers. Actually compliance ensures all labor rights and facilities according to the buyers code of conduct. The aim of compliance is to maintain strictly the labor law. 16.1 Basis of Compliance ILO Convention Labor Laws Law of the land Buyer COC Human Rights Conventions 16.2 Key Compliance Issues for factory Child Labor: factories must comply with all applicable labor law. No person shall be employed an age younger than the legal minimum age for working in any specific jurisdiction. Forced Labor: factory shall not use involuntary labor of any kind, including prison labor, debt bondage of forced labor by the government. Non-discrimination: all conditions of employment must be based on an individuals ability to do the job, not on the basis of personal characteristics of belief, color, national origin, gender, sexual orientation, religion, disability and other similar factors. Wages & benefits: factories shall pay wage and overtime premiums in compliance with all applicable laws. Workers shall be paid at least the minimum wage or a wage that meets local industry standards which is greater. The factory provides paid annual leave and holidays as required by law or which meet the local industry standard which ever is greater. Working hours: factories shall pay set working hours in compliance with all applicable laws. as per labor laws no adult worker shall be required or allowed to work in a factory in a factory more than 48 hours in a week. An adult worker may work for more than 2 hours in a day or 12 hour in a week as overtime. Health & safety: factories shall comply with the all applicable laws and regulations regarding working conditions and shall provide worker with a safe and healthy environment. i.e.: necessary personal protective equipment, ventilation, lighting, temperature control, emergency exit doors, fence, sanitation and washing facilities, primary medical support, fire fighting equipment etc. Product safety: No defective product to be shipped. Product must adhere to all child safety standards. Products packaging must carry all statutory warnings there should be no machine or component broken left over in the product else it harms the user.

Human treatment or disciplinary practice: employer shall treat all workers with respect and dignity. Factories shall not use corporal punishment or any other physical and physiological coercion as well as verbal abuse. Freedom of Association: workers are free to join association of their own choosing. Factory shall not interfere with workers who wish to lawfully and peacefully associate, organize of bargain collectively Management System: Top management shall define the companys policy for social accountability & labor conditions to ensure that it includes a commitment to comply with national & other applicable laws. Appointment Letter & ID card: Each and every worker should be given with appointment letter and ID card by their employer immediate after appointment. Environment: Factories must comply with all applicable environmental management system or plant. Factories should have an effort to curtail the harmful effect of its activities on the environment and continually improve its performance. Motivation/Worker Re-ordination : Workers are reoriented/motivated/informed on labor laws, code of conduct & other work place rules. Training: Supervisor & Personnel Staff are trained on labor laws, personnel policies, welfare matters & work place rules etc. Worker-Management relations: Workers are allowed to put forward their ideas/ Suggestions /proposal/complaints on any issues of on any improvement.

Conclusion:

Merchandising, as commonly used in Marketing also means the promotion of merchandise sales, as by coordinating production and marketing and developing advertising, display, and sales strategies to increase retail sales. This includes disciplines in pricing and discounting, physical presentation of products and displays, and the decisions about which products should be presented to which customers at what time.