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 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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