Methods of Costing Format Used in Garment

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Methods of Costing Format Used in Garment document sample

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                                                    MANAGEMENT
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                WOMEN ENTREPRENEUER DEVELOPMENT
                       IN GARMENT MAKING
                                                 Dr. N. VASUGI
                                                     Reader
                            Family Science & Community Development Department
                                      Avinashilingam Deemed University
                Sri Perumal Complex Nethaji Road, Pappanaickenpalayam, Coimbatore -641 037


      This paper deals with garment marketing and management. Fashion and Garment Industries is
      looked at as an Industry of Guture. Thus this paper deals the development of women entrepreneurs
      and their association on different garment manufacturing activities and emerging possible opportunities
      in the domestic and global markets.
      Key words: Ecomen entrepreneurs, Entrepreneurship in Tirupur, Garment marking, Swot Analysis,
      Quality management.



INTRODUCTION                                Fishing Knitwear occupies a             l   Population in 18 to 65 age
                                            significant place in India's textile        group: 780 million approx.
Clothing is the basic necessity of          exports. Around 40-45% in terms
any human being. The textile                                                        l   Entrepreneur size: 127 million
                                            of quantity is knitwear exports. Key
garment industry is the largest             centers of knitwear exports in India        approx. in all spheres of
foreign exchange earner. It is also         are Tirupur, Ludhiana, Delhi,               business
the Second largest employment               Kolkata, Mumbai and Bangalore in
provider next to agriculture. About         the order their contribution to the     A Special Note On Entre-
15 million people are employed in           over all exports. Tirupur contributes   preneurship In Tirupur
textile sector.                             around 60% of knitwear exports          Produces diversified product range
Today, world over "Fashion and              from India. This paper deals the        comprising T-shirts, Polo-shirts,
Garment Industries" is looked at as         development          of     women       Sportswear, Sweat shirts, Ladies
an Industry of future. No wonder,           entrepreneurs and their association     dresses, Children garments,
because, these industries opens up          on different garment manufacturing      nightwear, etc.,
some of the Biggest Job                     activities and the emerging possible
                                            opportunities in the domestic and       Approximate number of units
oppor tunities for the new
millennium especially for women             global garment markets.                 l   Knitting and/or stitching
sector. The current trend shows                                                         units                     3,500
more and more opportunities for             ENTREPRENEURSHIP
this sector in both domestic and                                                    l   Dyeing and/or
                                            The entrepreneur is an individual           bleaching units            750
export opportunities. Compa-
                                            who forms an organization for
ratively, the attention on export                                                   l   Printing units             350
                                            commercial purpose
opportunities seems to be more.
Ready made garment industry in              Organization                            l   Embroidery units           225
India has a vast potential for              A formal, legally bound, commercial     l   Others                     250
growth. According to experts the            oriented entity where more than
Indian garment Industry is termed           one person join and work towards            (Compacting, raising, calendar-
as a sleeping giant. Eighty percent         common purpose. This includes               ing)
of people employed in the Indian            Manufacturing Trading Services.
garment Industry are women.
World wide the garment industry is          Size of Entrepreneurship in India       Knitwear and ancillary industry in
the third largest employer of               l   Total Population - 1 Billion        Tirupur together provide employ-
women, after Agriculture and                    approx (1000 million)               ment to nearly 2.5 lakh people.

Journal of the Textile Association – March-April 2007                                                               271
                           GARMENT INDUSTRY IN INDIA
                           The following chart gives an idea on SWOT of INDIA in garment industry


                                                       SWOT ANALYSIS
                                                                 STRENGTH


                                                                    FIBRE

                           OPPORTUNITY                          LABOUR COST

                                                           HUMAN RESOURCE                         THREAT

                                €                                                              €
                           LIBERALISATION                       €                    NEIHGBOURING COUNTRIES
                           EXHIBITIONS                                               PHASING OUT OF QUOTA
                           POLITICAL-                                                INTERNATIONAL PRICING
                           UNDERSTANDINGS                    SWOT                    SLOW RESPONSE
                           POPULATION       ƒ         „                     ƒ      „ LACK OF TRAINING CENTRE
                           PHASING OUT QUOTA               ANALYSIS                  INCREASING COST
                           REGULAR BUYERS                                            UNSTABLE POLITICAL
                                                                                     ENVIRONMENT
                                                                
                                                              €
                                                           WEAKNESS

                                                              €
                                                            QUALITY

                                                          €
                                                   DELIVERY SCHEDULE
                                            ABSENCE OF QUALITY PROFESSIONALISM



                                                   Table 1: Indian Textile/Garment Clusters

      Details                                 B'Lore       Surat            Bhiwandi          Bellary      CBE         Slm Ede    Tpr

      No.of Units(SME's)                      20000        40000            6000              2000         –           60000      6000
      No.of Power looms                       250000       450000           450000            –            Spg         30000      450000
                                                                                                           500
                                                                                                           Wvg
                                                                                                           150000

      No.of Workers (Dir/Indirect)            150000       740000           700000            85000        700000      450000     400000

      No.of processing units                  30           330              200               20           500         400        450
      Avg Prodn/Working Day(Rs) crores        25           40               35                40           40          25         35

      Approx.Annual Turn over (Rs) crores     4800         9000             7500              300          8000        9000       9000

      Leading Brands                          Nike,        Garden,          Raymonds,         –            Crocodile   –          –
                                              levis        Vimal            Morajee                        Tibre


                                Table - 2 : Garment Production - Model Machines Configuration - Shirts

         SNLS                                         30                    Cutting table                                   1
         Overlock                                      2                    Checking tables                                 4
         Feed of arm M/c                               2                    Folding tables                                  4
         Button Hole                                   1                    Finishing equipments                            1
         Button Stitch                                 1                    Packing tables                                  4
         Bartaking For Heavy gmt                       1                    Cutting accessories                             4


272                                                                                  Journal of the Textile Association – March-April 2007
      Table - 3 : Garment Production - Model Machines                         Table - 4 : Garment Production - Model Machines
                   Configuration - Trousers                                                Configuration - Knitwear

      SNLS                                           20                       SNLS                                    25
                                                                              Over lock                                   8
      Over lock 3 T                                   2
                                                                              Feed of arm M/c                             4
      Over lock 5 T                                   1
                                                                              Button Hole                                 1
      Loop attachment                                 1
                                                                              Button Stitch                               1
      Waist Band attach                               1
                                                                              Bartaking For Heavy                         1
      Feed of arm M/c                                 2                       Cutting table                               1
      Button Hole                                     1                       Checking tables                             4

      Button Stitch                                   1                       Folding tables                              4
                                                                              Finishing equipments                        1
      Bartaking For Heavy gmt                         1
                                                                              Packing tables                              4
      Cutting table                                   1
                                                                              Cutting accessories                         4
      Riveting m/c                                    1



                                              Table - 5 : Garment Spec. for each style-format

   Garment Spec for each style/format

   Date
   Style                                                                           Sample

   Line Drawing of back & front

                                                          Fabrics                  Qty                           Vendor(s)
   Fab.structure                                                                   Weight/GSM

   Width/Dia                                              Colours                  Finishes                      Lining

   Interlining                                            Hooks                    Buttons                       Threads
   Zippers                                                Tags                     Labels                        Packing

   Patterns                                               Cut parts                Marker information's

   Lay/spreading
   Breakdown assembly process

   Machines                                               Machines                 QA / QC

   Final marking / dispatch / final cartons


                            Table - 6 : Costing-Trouser-100% cotton Twill fabric/Piece Dyed-5 pckt/jeans

                                                                                                                              Rupees

   Fabrics                  Rs.120/mt of 56" for 1.2 mts                                                                      144.00

   Accessories              Labels/zippers/Rivets/snaps/buttons Threads/tags/logo label                                        30.00

   Packing                  Poly bag/cartons                                                                                    5.00

   Washing                  Various on requirement                                                                             20.00

   Finishing                Press/fold/indl.Pack/carton                                                                         5.00

   Cut, Make, Trim          Sewing Cost                                                                                        40.00

   Waste/rejection          @10% of Rs.238/-                                                                                   23.80

   Admn.Expenses            @5% on 261.8                                                                                       13.10

   Profit                   @10% on 274.9                                                                                      27.50

   Total garment            Ex factory Price                                                                                  303.00


Journal of the Textile Association – March-April 2007                                                                              273
                                        l   Freedom     from  defects,           l     QIP: Quality improvement
THE SCOPE OF GARMENT
INDUSTRY IN INDIA                           Imperfections & Contamina-                 programme
                                            tions
Garment industry is the part of                                                  l     VA: Value analysis
textile industry. it earns 30% of       l   Degree of excellence
India's total expor t.         40%      l   Customer satisfaction                 Table - 8 : World Labour Cost In USD/
Constitutes ready made garments
                                        l   Ability to satisfy the needs                           Hour
(Both Knitted and woven). India's
share in world trade is 2.85% INDIA     l   Q = P/E Where Q=Quality                  Germany                   21.58
Rank 9th in textile exports. Now                P= Performance
                                                                                     Japan                      20.7
the vertical integration units are                       (or) Results
being started.                                  E= Customer satisfaction             Belgium                   18.12

Globalization                                                                        Italy                     15.81
                                        Giving the customer what he wants
It means Cross border trading with      today at a price he is pleased to            France                    14.16
no barriers. It will lead to            pay at a cost we can contain again
                                                                                     UK                        13.58
                                        and again and again, AND giving
l     Competition
                                        him some thing even better                   USA                       10.12
l     Development of key centers        tomorrow. Key Words-Comfort,                 Canada                     9.89
l     Productivity/efficiency           Appearance Durability. "Customer
l     Managerial expertise              satisfaction is quality"                     China                      0.56
l     Technological advancement
                                        Tools Used        For       Quality          India                      0.56
l     Raw material availability
                                        Management
l     Right quality and right price
l     Quick and on time delivery        TQM (Total Quality Management)
                                                                                 Need For Quality Control
l     Certification                     It helps in
                                                                                 l     Because there is a problem
l     Govt. Policies and labour laws    l   Method or removing waste
                                                                                 l     Because BAD Quality is
l     Quota
                                        l   Involving ever y one in                    expensive
l     WTO
                                            improving the ways in which
                                                                                 l     Because CUSTOMER is the
                                            things are done
Competition from with in, now with                                                     KING
the world. So Survival of the fittest   l   To communicate with and help
                                                                                 l     To Minimize waste
is the criteria. For this Quick & On        each other
time Delivery is required. Quick                                                 l     To have Good Value addition
                                        l   Achieve a       top     quality
response and shorter lead time/
                                            performance                          l     Effective utilization of resources
faster deliveries are BUZZ words.
Getting 30 days of order                l   Develop      an      effective
confirmation from Turkey buyer,             competitive strategy
                                                                                 Designer and Quality Control
expects same from us. Buyer
                                        Some      Of   The     Quality           l  They Resolve problems of fit,
wants to be very close to customer
                                        Abbreviation Used In The                    Method of assembling &
demands. India used to 180, 120
                                        Industry Are As Follows                     Testing success
& 90 days lead time.
                                        l   AQL: Acceptable quality level
Certification                                                                    l     Designer should specify the
                                        l   ASQC: American society for                 following
Civilized world buy cloths from only
                                            quality control
from civilized producers. ISO                                                          o      Description of style
cer tification & WRAP (World            l   BS: British Standard                              features with an illustration
responsible apparel production)
                                        l   EQC: Effective Quality Circle              o      Description of fabric limits
registration become inevitable to be
a global producer.                      l   EOQ: European organization           l     Quality of design means value
                                            for Quality                                   inherent in the Garment
Quality
It can be defined as                    l   IQA: Institute of Quality                  o      Trim requirements
                                            Assurance
l     Fitness for use                                                                  o      Size Scale for style
                                        l   PQA: Programmable Quality
l     Compliance with specified                                                        o      Critical dimensions and
                                            Assurance
      requirements                                                                            tolerances

274                                                                  Journal of the Textile Association – March-April 2007
    o    Specification of stitch and        l    Already some factories are                  Each member of the above group should
         seam type                               marching towards it                         invest Rs.1000/- each = Rs.30,00,000/-

    o    Relevant details of the                                                             The Banks lend 3 times that amount (i.e.)
                                            Main Requirements                                Rs.90,00,000/-
         process
                                            For A Good Apparel Quality
                                                                                             Total investors + Bank = Rs.1,20,00,000/-
Different Concepts Connected                Management
With Quality                                                                                 State & Central Govt.'s lend another
                                            l  Management commitments                        Rs.1,20,00,000/-
l   ISO -9000
                                            l    In coming goods conformity                  Total capital out lay from investors + Bank
l   Basic element of the system                                                              + Govts = Rs.2,40,00,000/-
    through documentation                   l    Employee involvements
                                                                                             An Emerging Opportunity
l   Creates a quality system                l    Fabric inspections
                                                                                             Target profit = 10% of 2,40,00,000/-
    rooted in your customers
                                            l    Operator control systems
    requirement                                                                              Amount profit = Rs.24,00,000/-
l   Ensures uniform systems that            l    End line inspection                         Profit per head = Rs.800/- per annum
    are universally recognized              l    Factory pre final                           Monthly earning per head = Rs.1500/-
Quality Circle                              l    Out side agency inspection                  Total gain/head : Rs.18,000 + Rs.800 =
Group of line workers who meet                                                               Rs.18,800/-
                                            l    Customer returns and actions
voluntarily to work on quality                                                               The purchase of raw materials
problems and offer solutions                                                                 and sales of garments is under
Bench Marking                                       Table - 9 : Product Category             one entity.
Comparing a Company's practices             Mens'/Women's/Kids' Wear                         Ready to wear Market - India
and process with the world's best           Formal         Semi-formals        Casual        Approx. Rs.8,000/- crores now
STD for the purpose of closing the
                                            Dresses        Party wear          Leisure       branded garments
gap with them.
                                                                               wear
                                                                                             Estimated to grow to Rs.15,000 crs
Appraisal Costs                             Outer wear     Weekend wear        Sleep wear    by 2010.
Costs of inspecting, assuring and           Accessories Holiday meet           Under
evaluating whether the product                                                 garments
                                                                                             Employment Opportunities In
conforms to requirement.                                                                     Garment Industry For Women
                                                           Occasions
Continuous Improvements                                                                      Garment Industry shows much
                                                           Sport wear
                                                                                             interest on trained creative Fashion
Constant, Ceaseless attempts to
                                                           Lingeries                         designers with knowledge on CAD/
exceed the customer expectations.
                                                           Swimwears
                                                                                             CAM, Merchandisers, Production
AQL: It is defined to mean the %                                                             managers etc. Also the awareness
defective unit accepted as a worst                                                           of fashion designing is taking place
case for the whole lot (Shipment),                                                           due to the brand promotion
                                            Retail Formats: Space
for any one inspection.                                                                      activities. The new domestic
                                            Requirements
PDCA Cycle                                                                                   brands are showing keen interest
                                            Independent Retailer : <300 sq.ft
                                                                                             in developing new designs and
A 4 step process of plan -do-check-         Specialty Retailer     : 300-2000 sq.ft
act derived by the Japanese from                                                             products. Every day the new
Ed Deming principles.                       Boutiques              : 800-3000 sq.ft          entrepreneurs are entering in to the
                                            Super markets              : 2000-5000 sq.ft
                                                                                             field. Since the growth export
Statistical Process Control                                                                  sector is positive, the growth of the
                                            Departmental stores        : 10000-80000 sq.ft
Use of a statistical methods to                                                              industries which concentrates the
analyses a production process to            Malls                      : > 80,000 sq.ft      production of accessories is also
prevent undesirable variation.              Factory outlets            : < 500 sq.ft         increasing.
Six Sigma Quality                           Haats                      : < 10,000 sq.ft      Careers In Fashion Industry
To cut defects in the process to            An Emerging Opportunity                          The women can work in the field
the level of 3.4 per million parts                                                           of Whole sale Trade, Retail
                                            Take 10 women as one group
What to do?                                                                                  Designing, Fashion Writing,
                                            Form 300 such groups
                                                                                             Modeling, Merchandiser, Quality
l   We need to have a quality               Train the above 3000 women in garment            controller, Production Manager,
    revolution                              manufacturing operations.

Journal of the Textile Association – March-April 2007                                                                               275
Supervisor, Fabric Coordinator,                Oppor tunities in Fabrics and                 CONCLUSION
Sampling in charge                             fashion includes Forecast fashion
                                                                                             Though our country shows very
Whole sale Trade includes Creating             trends in advance, Become a fabric            good growth in terms of apparel
own brand, Appointing sub dealers,             designer (Freelancing), Act as a              exports, on comparison with other
Pattern Trade Designing, creating              fashion promoter etc.                         countries revels that India lost
Full range of patterns for all age                                                           opportunity in the past in growth
                                               Opportunities in Modeling includes            trends of its textile and clothing
groups and all styles.
                                               Modeling for cloths in smart retail           industry. It needs to address
Retail Designing includes designing            shops, hotel shows, Fashion                   internal challenges. It is definitely
the garment on personal contact                Shows, Photographic modeling,                 sure that the Garment and fashion
with the client, run your own                  Choreographer.                                industry will get going because of
boutique shop etc…,                                                                          its preparedness.                  n
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                                                 INSTITUTIONAL NEWS
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Endowment lectures were held on March 26, 2007 at K. Venkatraman Auditorium, UICT Organised by The
Department of Fibres and Textile Processing Technology.
l     G. M. Nabar Endowment Lecture
      Speaker         : Prof. V. K. Kothari
                        Prof., Department of Textile Technology,
                        JIT, New Delhi 110 016
      Topic           : "Fibre Innovations for Technical Textile Applications"

l     L. N. Chemical Endowment Lecture
      Speaker          : Dr. G. S. Nadiger
                         Director, Textile Committee, Ministry of Textile, Mumbai.
      Topic            : "Care Labeling of Textile Apparels"




                                                REQUIRED
                                       FOR LEADING MANUFACTURER
                                          WITH SEVERAL PLANTS



           1. GENERAL MANAGER (WORKS)
              (at Mahad Raigad)
              Degree or Diploma in Textile Engineering min 8 to 10 years Experience
              with knowledge of non-woven.

           2. GENERAL MANAGER MARKETING
              at (Head Office) Mumbai
              Min 8 to 10 years Experience.


                         Reply in confidence (E-mail to sbsroad@yahoo.com)



276                                                                              Journal of the Textile Association – March-April 2007

						
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