EXPORTS
Submitted in partial fulfillment of the requirements for the degree of INTEGRATED MBA (5 YEARS)
Done by
PROF.ASHOKUMAR
Senior professor
September 2011
VIT Business
School fostering innovation
VIT
UNIVERSITY
(Estd. u/s 3 of UGC Act 1956)
CERTIFICATE
This is to certify that SANTHOSH.S, 08MBI103 has undergone Internship training in V.R.EXPORTS in partial fulfillment for the award of degree of Integrated MBA (5 Years) of VIT Business School, VIT University and the report was prepared under my guidance. The contents of this project, in full or in parts have not been submitted in any form to any other Institute or University for the award of any degree or diploma.
Programme Manager
Faculty Guide
Internal Examiner
External Examiner
Declaration
I, santhosh.s, 08MBI103, a Bonafide student of the VIT Business School, VIT University, Vellore, hereby declare that the Internship Training Report submitted by me in partial fulfilment of the requirements of the Degree of Integrated MBA (5 Years) of the VIT University, is my original work. . Date: Place: Vellore
Acknowledgement
I am highly thankful to Mr. ASHOKUMAR, the internship guide and Dr. D.ASHOK, the program manager for their guidance and constant supervision as well as for providing necessary information regarding the internship & also for their support in completing the internship. I would like to express my gratitude towards VIT BUSINESS SCHOOL and V.R.EXPORTS for providing an opportunity to experience industrial environment. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.
INTRODUCTION: The Group "V.R.Exports" is splendidly steered by the combined vision, energy and the of technocrat brothers Mr.K.C.Venkateswaran.(Properitor) The modest growth from the time of inception to the current business volume a complete testimony to the clarity of vision and the quantum of energy that propels the company. The day to day working of the company has been departmentalized into various sections for optimum efficiency.
Sampling & Development Merchandising Purchase Production Quality Assurance Logistics Finance & Administration Human Resources Compliance & Social Management Information Systems
Sampling division is their strength. They have built an excellent sampling development system managed by a creative team of professionals. Commitment: Compliance with better environmental practices and service standards, so as to provide quality garments to their valuable customers, thereby enhancing their satisfaction is their mission statement. At V.R.Exports, their commitment takes precedence over everything else. They believe their success is the result of their commitment to product quality, timely delivery, the environment and their human resources. Their products are manufactured under the requisite statutes and regulations. By immaculate planning, They are able to strictly adhere to their delivery commitments. They impart continuous training to their employees to create among them awareness of the customers requirement to achieve the right quality products. By establishing an effective communication system, they enable easy access to them and customers. Their efforts are always directed at continuous improvement of their processes, quality management system and their products. They ensure the product delivery is in line with the customers requirement. Enhancing customers satisfaction is of prime importance to them. Quality Timely Delivery Transparency Fashion Innovation Shorter Lead Time Ability to Process Orders of Any Quantity Design Studio Flexibility At V.R.Exports, they pledge to care for the society & the environment. The WRAP certification testifies them as a responsible apparel producer. Endorsing their commitment to the environment is the ISO 14001, Oeko Tex Standard-100 and Ecotex. Their Social Accountability Management System complies
with the SA 8000 standards. They have also installed windmills whereby 40% of their power requirements are met by green energy. The reduced water consumption in their dyeing unit, following energy saving means and reduced carbon emission reinforce their responsibility. They are certified to produce all blends of Organic Cotton products known as Sustainable Textile products, which further testify their commitment to the world they live in. Their operations are conducted with awareness for environmental safeguard and they deem it their obligation to prevent pollution by complying with relevant environmental legislations. They constantly, aim at enhancing environmental awareness amongst their employees. They strongly believe in their commitment to the environment. They are committed to pursue high-quality manufacturing practices and ethical employment practices facilitated by clean, safe and healthy working environment and supply consistently high-quality products on time to their valuable customers. Operations: V.R.Exports has the most modern infrastructure and machinery available in the market. Their manufacturing operations are vertically integrated to facilitate all the processes under one roof. Offerings: V.R.Exports Exports covers the entire range of knitted garments. Their bouquet of categories includes:
Mens wear T-Shirts, Polos, Under Garments, Sleep wear, Sports wear, Work wear, Sweat shirts, Cardigans, Bermudas, and Co-ordinates.
Ladies wear T-shirts, Cycling Shorts, Night wear, Ensamples, Cardigans, Pullovers, Vests, Co-ordinates, Leggings, Under Garments, and Woven Shirts.
Kids wear Fancy T-Shirts, Boxer Shorts, Ensembles, Cardigans, Pullovers, Cycling shorts, Vests, Coordinates, Leggings, Underwear, Woven Shirts & Woven underwear. Quality: Quality speaks volumes about the manufacturer and the product. Quality first has always been a watchword in all of their processes. They have got an efficient quality assurance team which looks into the intricacies of quality management through continuous online checks right from receipt of raw material to end product, using the latest quality monitoring machines, and ensuring that the end product meets buyer requirement. They are conferred with ISO 9001:2000 and ISO 14001:1996 certifications towards Quality Management System and Environmental Management System respectively. In addition to ISO certifications, they are also certified for Oeko-Tex - Standard-100 and Eco-tex. This allows us to supply their products under the respective labels. One of their production facilities is conferred with SA 8000:2001 towards Social Accountability Management System. Two of their production facility is certified for Worldwide Recognized Apparel Production Certificate of compliance, developed by M/s. American Apparel and Footwear Association, the largest sewn product association.
EDP/IT department.
Accounts department:
The company does not have a separate finance/accounts department in it. It is attached to its main company i.e. Eastman Exports. There are four employees under the accounts department which is led by one person who takes care of each and every aspect of accounts department such as year ending accounts, analysis and financial consultation to the company. As far as accounts department of V.R.Exports is concerned the company did not part with financial information of the company. The details which they provided were approximate figures. On assumptions the total fixed assets of the company works out to be 1.5 crores approximately. The stock per annum is made out to an amount of Rs. 3 crores. And the
inventory turnover ratio according to the assumption given is 3 times the stock. Some other assumptions i.e. current ratio of the firm is 2.8:1, Liquid ratio of the firm is 1.7:1, Cash ratio of the firm is 0.87:1.
Personnel department:
Personnel department is headed by a Personnel Officer. He further has 3 sub-ordinates one welfare officer and two personnel assistants. The personnel department has direct link with all the employees for daily attendance record and for the salary and compensation. The company is very serious about disciplinary actions such as sexual harassment, tardiness, lack of timely implementation etc. But they believe in informal reporting channel than formal reporting channel. For example: if a employee has a problem with his superior he is not forced to complain to their department head, but he is encouraged to take the issue with personnel department. Depending upon the problem the conflict may sometimes be directly projected to the proprietor. In the absence of the proprietor the personnel department has a right to dismiss the concerned person for his misbehavior if the misbehavior were grave. Personnel department endeavors to provide job satisfaction and try to maintain pay and compensation at satisfactory level.
Basic responsibility of personnel department: Following the Provisions of the Factories Act 1948:
According to the Factories Act 1948 the company is required to renew factory license depending on the horse power of electricity for the commercial purpose and the payment of fees varies according to the slab. The factories plan has been approved by the Factory Inspectorate according to the Factories Act. For the safety purpose all the windows and doors of the company premises have been attached as outward open. Minimum 3 feet distance is there between each and every plant and machinery. In each and every machine company strictly fixes and maintains all the fittings like pulley guard and belt guard correctly to avoid accidents and uncertainty. In each and every row there was a first aid box with full kit and prescribed medicines and materials required for first aids are available. St. Johns ambulance association is the local hospital provides first aid for the company. Within every 1000 sq.ft the fire extinguisher is fixed on the wall and near the fire extinguisher a list of names of people who are properly trained under fire service department is displayed. It is compulsory within the organization that only ABC type fire extinguisher should be fixed in the company. Emergency and evacuation plan in case of fire or any natural disasters has been prepared and the company checks its feasibility in every six months. Condition of the fire alarm will be checked in every week. Urinals at the rate are per 15 employees are provided, Proper wash room and dining facilities are available. Dining hall has the capacity to accommodate around 500 persons. In the company there are 200 lady employees so According to the Factories Act if more than 30 women employees work in the company then crche should be provided to taking care of there children. So according to that the company has created crche which has a capacity to accommodate 50 children at a time.
The working hour of the company is 8 hours per day; neither staff nor employee are permitted to work more than 8 hours a day. Sunday is a compulsory weekly holiday with wage. No over time is permitted on Sundays. If over time has to be done their double the wages for their work will be provided. Maximum level of over time will be of 75 hours per quarter year of the year. For every 20 days of works an employee is eligible for one day of leave with wage. The validity of licence ends on 12th month and the application for renewal is given in 10th month itself.
All the above 9 days are compulsory holidays for the company. Those 9 days are classified into two types of holidays national holidays (4), festival holidays (5) All these 9 days are considered as holidays with wage Working will not be permitted in any case on all the national holidays; but during festival holidays in some exception case working is permitted. But to work during festival holidays also the company gets necessary permission form the factory inspector. For the employees to work on those days the company provides them double wage. According to the Factories Act, if a company has 250 workers there should be compulsory canteen with a concession for the employees and the canteen should be run in no-profit- noloss basis and if a company has more than 500 workers with addition to the canteen service as above mentioned there should be ambulance service with nurse and welfare officer specially posted in the company for the welfare of the employees. In this company there are around 600 employees so the company has each and every essential facility according to the Factories Act. A canteen service has been running on a no-profit-no-loss basis and ambulance service in association with St Johns ambulance service with 2 nurse and a person appointed as a welfare
officer for the welfare of the employees. Further for the canteen employees bacteriological test has been ministered to find whether they have any communicable disease like itching, wounds etc. Notice boards are maintained and employees are requested to go through them daily. Every week there will be change in content of the notice board.
Returns:
According to the Factories Act register to be maintained under factories act 1948. Retirement of every employee should be recorded in the register. Total experience of the employee should be clearly represented in it. All the pay and allowance given to the employee should be timely recorded. All the above will be done by the company with proper inspection when an employee leaves the company.
Form-7:
Painting or lime wash should be done compulsorily at least once in a 6 month.
Form-28:
Exception register has been maintained by the company. Over time register has been maintained according to the work done by the workers. Salary slip, promotion of the employee and increment of the salary has been recorded separately.
Form-29:
This form contains the following aspects: Particulars of the company premises. Particulars of the rooms in the factory. Dimensions of the rooms in the factory. Particulars of the working area within which employees work. Machinery details. Details of the people working with the kind of machinery. Particulars of the people who have been trained to operate special machineries
In a year if a person works at least for 30 days company has been providing cut off of Rs.5 as labour welfare fund. The proprietor should also pay RS.7 towards a labour welfare fund. The labour welfare fund will be collected during month of january.
Returns:
In a calendar year every six months form-2 should be renewed. First half of the year called as half yearly return and second half called as annual return. PF will be calculated on 15th of every month. ESI will be calculated on 21st of every month.
Bonus:
According to bonus act once in a year bonus should be provided to the employees. In 12 months whatever amount the employee get as a salary, over time wage is considered as total annual salary of the employee. According to bonus norms 8.33% on basic pay of the employee will be given as bonus to the employee. In this company bonus provided during festival time i.e. deepavali. The minimum bonus provided to the employees are 8.33% sometimes due to good return as profit and due to proprietors interest it may be above 8.33%
Factory management:
This department plays a vital role in the whole companys profile; it has a maximum sub division within it. This department needs more co-ordination and high level of communication and employees are directly related to this department. Factory management totally has 10 sections within it and headed by one person called factory manager.
The ten sections are as follows: Planning Section Fabric Section Cutting Section Input Section Accessories Section Production Section Trimming Section Ironing and Packaging Section Maintenance Section Quality Section
The total production process starts from the planning section. The order sheet from the customer /buyer directly goes to planning section. The planning section further processes the
work and analyses the way to do the work and perform certain important task like allocations, allotments and scheduling. According to those schedules the rest of the section should coordinate. Planning section led by the person called planning manager takes the order; analysis the time to produce per unit and make a pattern for the ordered garment with the help of chief pattern master and according to the planned quantity of the product with 5% of wastage he orders the fabric to knitting unit. The finished fabric will be directly sent to the fabric section from the knitting unit. Fabric section takes minimum of 1 day and maximum of 3 days for some necessary process of fabric such as checking the quality of the fabric as per the buyer needs, checking the dyeing process of the fabric with lab test and getting approval from the customer/buyer to ensure the satisfaction with the quality of the fabric. The schedule made by planning section will also contain the dead line of the process of fabric section. After taking approval from the buyer the fabric section further proceeds towards to the cutting section. The deadline of the cutting section will be mentioned in the main planning according to the cutting master-(head of the cutting department) makes a schedule for cutting according to the pattern and measurements sent from planning section and pattern master. Around 5% extra will be cut for the purpose of uncertainity avoidance towards wastage. After cutting all the bundles the fabric will be sent to input section, it adds some fabric related materials such as ribbed Kopf, collars, yoke and the necessary material which the buyer orders as extra fittings in their final product which totally depends upon the design of the product. Input section further sends the material to accessories section. Accessories section issues materials such as labels, zip, buttons and other necessary components according to the buyers needs and products design and only number of ordered quantity will be sent to the next section. Next comes the main part of the production, the production section which does the total stitching work of the product. This department is headed by two production in-charges who get the copy of production schedule and in every day meeting in the morning they set the current days target and try to achieve it. Based on the information provided by the company every day they set the target more than what they need and they achieve less than the target so that they achieve their actual target. As per the schedule lines of the production (such as A, B, C.O) particular job i.e. different orders from different companies are allotted. Each line has two superior persons called line supervisors who coordinate their own line towards achieving the scheduled target. In case of any problem or damage in the garment within the line during stitching will be handled by the line supervisors. If the problem is so critical the responsibility will be moved on to production in-charges; they further have a discussion with factory manager and planning section to resolve the problem. Coordinating all the line supervisors and lines is the basic job of production in-charges. During stitching if the level of damage made the order quantity compromise then again the issue goes to the planning section. Planning section will continue the same cycle for the remaining quantity with the 5% extra on that quantity to avoid risk. When the stitching process completed the process moved on to quality section. In each line of production there will be a person called line end checkers who belongs to quality section their job is to check whether the finished product is as per the buyers requirement if satisfied the product will move on to trimming section, If not the line end checkers will report to line supervisors who further alter the product up to a certain level if the product does not suit the buyer needs; then it will be stored as second hand goods.
After stitching the order moves to trimming section. According to the dead line the trimming section plans within them and allocate with in themselves to finish trimming before at least one day of dead line. Trimming section is headed by the person called trimming incharge. He manages the employees working under him and finishes trimming process before one day of trimming deadline and sends the product to ironing and packing section. This section is headed by person called ironing and packing in-charge. This section gets an order when job sheet arrives with the ironing pattern and packing style. Rate tags, brand tags and other requirements of packing are directly received by this section. This will also be having the schedule for dead line and packs. During the time of arrival of job sheet itself this section books the shipment allotments and get all the things done for the shipment process of ordered quantity. This section irons the ordered quantity according to the buyers requirement and also packs accordingly. And organize all the packages in accordance with the country to which the package will be sent. They allot a colour for each country and paste respective colour on the packages and organize accordingly. All these process are done at least before 26 days of shipment.
other departments of the company. Planning section already aware of the arrival date of knitted fabric. So accordingly it sets dead line to the upcoming section like fabric, cutting, input, production etc.
Totally in this organization the planning department is playing a 360 degree role. Proper and feasible planning done by the planning manager and it has been implemented by the two subordinates under planning manger. All the above mentioned work has been done by those two people. So directly or indirectly those two people control the whole organization and coordinate both the top level planning with the lower level implementation.
Fabric section:
The initial work of the fabric section is to receive the knitted fabric from the knitting unit. Then a couple of process take place; they are, checking the weight of the total fabric bundles and comparing the weight with the minimum GSM required by the buyers which is mentioned in the job order sheet then checking the quality and type of the fabric and also getting approval from the buyer to assure their satisfaction for their strong assurance to start bulk production. The dyeing process is checked with the help of laboratory test. Along with the result this section will get another approval for further process. If the result of the lab test fails at first this section informs the planning section about the issue and level of corrections. At that time no debit will be put on this department or unit. The debit will be directly put on to the merchandise from whom the fabric got supplied. All these process has to take place within three days. There is a structure within the fabric section which is classified according to their work. They are:
Time management is the essential factor between fabric and planning section. This section has some other important duties like collecting all the wasted and damaged fabric. Most importantly according to the above chart those 2 fabric quality in-charges in the third position are not available in this unit. They will be taking care of the quality of fabric during the knitting itself. For each order the original quality will be shown to these fabric in-charges; they are involved in the process of quality maintenance according to buyer needs.
Cutting section:
This section plays an essential role as this company is a garment company this stage of operation cannot be eliminated. According to the allocation done by the planning section, this section will add on its own effectiveness to get effective output. All the bundles tested, sanctioned and processed by the fabric section will be received here and cutting process starts. When the cutting process is finished it will be sent to the input section.
Input section:
This section acts as an intermediate between cutting and stitching section. Though the fabric is available stitching needs some extra fabric for the extra fittings in the final product. So the job of input section is to cut the extra fabrics according to the fitting styles and along with main fabrics these extra fabrics will also be bundled and sent along with it.
Accessories section:
This section is headed by an in charge who records each and every transaction happening in this section. This section is in charge for all the required accessories to stitch and the special accessories needed according to the buyer needs. Some of them are buttons, zips, labels etc. All these are added on and sent to the stitching sub stores along with fabric bundle. But this section will deliver only limited resources and that too only with the replacement of a voucher issued by the concerned authority most probably that authority will be factory manager.
Production section:
Production section is where the main work of the operational level takes place. The production has totally 15 rows for stitching named by A to O and totally 2 production incharges lead this section who take care of all 15 rows. Each row has a supervisor, per 2 rows there is 1 quality in charge. In the next page there is a production schedule which is made for each month that will be divided into week and it will be further divided into days. Everyday there will be production meeting held in morning before production starts that involves production in-charges, planning and factory manager. By taking that schedule as base for every days production the current days allocation is done.
Important learning:
Operations of a garment company.
Importance of planning in an organization. Risks involved in planning. Importance of control and coordination. Exporting procedure of a product. Important aspects of Factories Act. Importance of employee welfare. How to handle employees.
Conclusion:
I conclude the company did not have any issues regarding operation or management level but there were problem regarding quality and uncertainty which every firm usually has. And may be this is our first experience of getting too deep towards the management level of a company. Being to new the intern did not find anything as wrong, unusual or problematic. But all the entire stay with the company had given new experience to the intern.