Functioning of an Export House- Gokaldas Exports

SUMMER INTERNSHIP REPORT

A study on the working of an Export House -

Gokaldas Exports Ltd.

Name - Aviral Raman Mishra

Department – Marketing & Merchandising

Mentor - Ms. Victoria

Course – Master of Fashion Management (MFM)

Institute – National Institute of Fashion Technology, Gandhinagar

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Gokaldas Exports Ltd.

Head office

Gokaldas Exports Ltd .

No 70, Pb No 2717, Mission Road,

Bangalore – 560027

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Table of contents1. Objective of the study.……………………………………….……………. 4

2. Methodology .…………..…………………………………….…………… 4

3. Executive Summary….……………………………………….…………… 4

4. About the company…………………………………………….…………...5

5. Awards and accolades……..…...…..…………...............................................9

6. Product Range ………………………………………………………….......10

7. Major buyers/ customers………………...…………......................................12

8. Department Study……..…………………………………………………....14

9. Process- Gokaldas Exports...……………………………………………….42

10. Arvind Brands…………………………………………………………….50

11. The Lean Initiative………………………………………………………..53

12. Gokaldas Exports Factories……………………………………………….55

13. A Visit to DMS factory……………………………………………………62

14. Garment wash …..………………………………………………………...75

15. The Key Learnings………...………………………………………………83

16. Conclusion…………………………………...……………………………84

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Objective of the study

1. To understand the working of an export house.

2. To understand the roles & responsibilities of a merchandiser in an export house

3. To get a clear understanding of the roles & responsibilities of different departments in an

export house.

4. To understand the standard operating procedures (SOP’s) for merchandising in an export

house.

5. To understand the process and procedure of an export order.

6. Get knowledge about the different documents prepared and used in an export house.

Methodology

The research carried out for this report is Exploratory in nature, in which the main objective was

to get first-hand information on the working of an export house & to understand the roles &

responsibilities of merchandiser in an export house.

The primary information was collected through informal and unstructured interviews and various

discussions with numerous people at different positions within & outside the organization.

For secondary information company manuals, internet, journals and published books were

reviewed & referred.

Executive Summary

This report is an account of first-hand experience gained in a company having a reputed stand in

the international market and policy of keeping itself updated with the changing times. This report

mainly deals in the application of theoretical knowledge into a practical experience.

The report attempts to present my experience in Gokaldas Exports Ltd.; India’s premier export

house. It is a privilege to be a part of such an esteemed organization and get the first hand

knowledge of various departments under various heads. It covers the basic structure of an export

house and its working. It also includes the various formats & techniques that are used to maintain

the records. Overall, this report covers the individual study of each department & the entire

procedures that a garment undergoes.

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.Company

Gokaldas Exports was founded by the late Jhamandas Hinduja in Bangalore in 1979. Hinduja

had moved to Bangalore from Pakistan prior to the 1947 partition of India and established a

business that manufactured silk scarves and stoles. On a trip to Copenhagen in 1971, he had his

flash of inspiration that started his success story. One of his business contacts asked him to copy

two shirts, a request, it turned out that was incredibly fortuitous as the market for silk scarves

was increasingly saturated. Hinduja was in need of a new business model and shirts appeared to

be the way forward. said Hinduja’s third son, Dinesh, who joined Gokaldas at its founding and

would go on to run the company with his brothers, Madanlal and Rajendra.

Manufacturing conditions in the early years were rudimentary. “I entered the industry in 1979,

with $5,000 (Rs 50,000 then) and 40 leg machines in a 1,000 square foot rented space,” Dinesh

Hinduja explained. “We worked in shifts, making garments in the morning and packing them

towards the evening in the same area.” The company targeted export markets – primarily the

United States and Europe – and began to expand through partnership arrangements, the most

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conducive approach to growth in the regulatory environment of the time, which favored small-

scale industry. In 1981-1982, the Apparel Export Promotion Council of India’s Ministry of

Textiles awarded Gokaldas its “Top Exporter Award,” one of dozens such accolades the

company would receive in coming years. As volume grew, technology was introduced, starting

with an HCL Workhorse, India’s first desktop computer. The screen glowed green; it had a five-

inch floppy and a heavy putty-grey keyboard.

Gokaldas factories were fully integrated, meaning they also made labels, tags, elastics, cords,

cartons and packing materials – everything needed for any garment produced. The 70 or 80

manual patternmakers – once a source of numerous problems – had been replaced by five to six

CAD systems. Huge industrial washing machines churned denim garments to give them the look

of the hour – stonewashed, acid-washed, bleached – while other garments were manually spray

painted, sand-blasted or laser-engraved. Massive multi-head embroidery machines emblazoned

shirts and jackets with appliqués, badges, and embroidery. Gokaldas was able to provide its

clients with “any kind of garment right from ultra-formal to ultra-casual across men’s, women’s

and children’s wear.” Eventually, it specialized in outerwear, like coats and jackets; active wear,

like warm-ups and swimsuits; bottoms, like trousers and shorts; and casual wear, including

shirts, blouses and dresses.

For the past 30 years, clients across the globe have placed confidence in Gokaldas Exports. They

trust the company to deliver to their exacting specifications, to match and even surpass extremely

high standards of quality and to meet the tight deadlines necessary in the world of garment

manufacture.

Today, Gokaldas Exports is one of the largest manufacturers in India and amongst the largest

internationally. Retaining strong family values and ethics, it has grown to be one of the world’s

best known and reliable manufacturers of readymade garments. Headquartered in Bangalore,

Gokaldas Exports operates out of more than 30 factories located in and around Bangalore,

Chennai, Hyderabad, Mysore and Tumkur. The factories are dedicated by buyers and by

products, specializing in creating Outerwear, Blazers and Pants (Formal and Casuals), Shorts,

Shirts, Blouses, Denim Wear, Swim Wear, Active and Sports Wear. Keeping pace with the

requirements of famous labels in 39 countries.

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Product strengths - outerwear, bottoms, sportswear, formal suits, trousers, skirts, and denim wear

across all genders.

Annual turnover is $200 million.

Global customer base, covering USA, Europe, Latin America, Middle East and India, servicing

almost all major brands.

Gokaldas has four decades of partnering the world’s most trusted fashion labels. They have lead

the readymade Indian garment industry, year after year, earning customer loyalty, winning

industry awards and growing reputation for reliability. They have oriented themselves to fashion

trends and customer needs, investing in the latest technology, relentlessly training the high

skilled workforce and setting the highest standards for themselves.

Vision

“To be a globally reputed apparel manufacturer, evoking distinctive recognition for Product,

Performance, Processes and People.”

Mission

“Achieve profitable growth through Innovation, Quality, Consistency and Commitment.”

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Board of Directors

Shri Richard B Saldanha Shri Gautam Chakravarti

Chairman Director & CEO

Shri Mathew Cyriac Shri Arun K Thiagarajan

Director Independent Director

Shri J H Mehta Shri Yashwant Shankarrao

Independent Director Patil Thorat

Independent Director

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Awards and Accolades

Gokaldas Exports has won the highest number of awards in Asia since 1980. The company has

also won all the top export awards amongst all Indian garment manufacturers.

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Product range

Gokaldas has the capability to produce a wide product range; among these are:

Formal suits

Casual shirts

Formal shirts

Casual trousers, shorts

Outerwear jackets

Coats, Parkas, Rainwear

Ladies blouse, Skirts

Dresses

Sports wear

Knits

Denim wear

Embroidered garments

Tie- dyed garments

Sleepwear

Children’s wear

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Major Buyers/ Customers

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Departments at Gokaldas Exports

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Sourcing :- Fabric & Trims

Sampling

Design / Product Development

CAD / Pattern

Marketing & Merchandising

Industrial Engineering Department (IED)

Export Documentation & Logistics

Production Planning & Control (PPC)

1. Sourcing

The sourcing department acts as a service department to Gokaldas Exports and is divided into

two parts. One takes care of only the fabrics while the other works on accessories and trims.

Sourcing is identifying and procuring of raw materials with right quality, right quantity, right

source, sharp and competitive prices and the best lead time. There are few major components

involved in the sourcing process. These are as follows:

Fabric sourcing: Fabric sourcing department is responsible solely for sourcing the fabrics for

sampling and development as well as for bulk. The organization structure is such that they have

different teams for different buyers which are further divided as sourcing for development and

bulk.

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Recieve indent from marketing

Create (PO) Purchase Order and send to the supplier (Nominated or Non- Nominated)

Recieve (PI) Proforma Invoice confirmation from supplier

Follow up

Create Advance Shipment Notice (ASN) and intimate the godown/ warehouse about the material in transit

Recieve Goods Reciept Note (GRN) on receipt of the material

The various outputs provided by the sourcing department are as follows:

Quality Information Lead Times (regular quality)

Lap dip 5 to 12 working days, (local/ imported)

Desk Loom 7 to 15 working days, (local/ imported)

Strike off (table/ rotary) 10 to 15 working days, (local/ imported)

Any special quality greige 2 to 3 weeks

Sample Yardages Lead Times

Solid 3 to 4 weeks

Prints/ Yarn Dyed 4 to 5 weeks


Bulk Fabric Lead Times

Solids (regular quality) 45 to 50 days

Prints 50 to 55 days

Yarn Dyed 55 to 65 days


One more important function of the sourcing department is to provide important information to

the merchants and the marketing department. For sampling and development, the sourcing

department provides with the pricing, quality information and any special requirements such as

alternate sources, different finishes, etc. of the fabrics to be sourced. For bulk order processing,

they provide information regarding the delivery date, TNA and FOB (different for solid, yarn

dyed, etc.)

Trims and accessories sourcing: The trims and accessories sourcing department is divided

buyer wise as well. Further, it is divided trims/ accessory wise. For example, a particular team

comprising of 2 to 3 people are responsible only for sourcing buttons and another team is

responsible for sourcing zippers, etc. Similar to the fabric sourcing department, for trims also

there are nominated and un-nominated suppliers. When an indent is received from marketing, the

sourcing merchant first contacts the Inventory Allocation Department (IAD) to check if the trims

requested by the merchandiser are already available in stock. If not, the sourcing merchant places

the order with the suppliers. If IAD has stock, then only balance trims (if any) are ordered for.

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For different materials from different suppliers; imported or local; there are different payment

and delivery terms. It is the sourcing merchant’s responsibility to get the most suitable term with

the supplier and continuously follow up for the same.

2. Sampling

The sampling department is one of the most important departments and it plays a vital role in the

uplifting of a unit. The dedicated sampling unit includes machinery for knits and wovens plus on

site embroidery. Sampling department directly coordinates with the merchandising and the

production department. Sampling is done to see how the product will look like when produced in

bulk and to check whether there is any discrepancies in the pattern and the samples are made

according to the buyer’s specification. Sampling checks the construction of the garment and the

production feasibility and friendliness of the style. The sampling department operators are highly

skilled and are capable of tailoring a complete garment.

Two main functions of the sampling department are:

a. To cater the buyer

b. New development

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Different types of samples are made at the sampling department based on the demands and

specifications of the buyer. These are:

Proto sample

This is the first sample made for the buyer. At this stage, the main aim is to impress and attract

the buyer and show them the capabilities of the company. This sample is applicable for the styles

which are made without any prior presentation of samples to buyer.

Fit sample

Once the Prototype sample has been approved, the buyer is provided with fit sample for

approval. This sample is prepared using the actual or a similar quality fabric, as mentioned in the

Tech pack, but could be in any colour and available trims.

Size Set

Once the fit sample is approved, based on the pattern of the approved sample the grading for

other sizes are done and pattern for all the sizes are made. Then the samples for all the other sizes

are made to check the fit and workmanship.

Pre- Production sample

On approval of the fit sample or size set sample, pre-production samples are sent to customer,

which is the actual in all aspect of trims, folding and packing.

Apart from these, two more types of samples are made at the factory itself to acquaint with the

styling, construction, wash, etc. of the style. These are:

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Production Size Set

At times, at the buyer’s request, size set samples are made at the factory as well before

proceeding for bulk.

TOP (Top of Production) sample

Sometimes buyer wants sample that production has been started. It includes all the trims,

package sticker, and price ticket of a related garment.

The sampling unit (R&D III) is divided buyer wise and each buyer has a designated technician

and QC. After the samples are made, a review sheet is maintained for each style for any further

alterations.

Sampling department workflow

Activity Team involved

Receive indent by mail, print indent, update information on sampling

software and hand over indent copy to respective sampling coordinator

Data entry

operator/ Sampling

coordinator

Accept indent, verify information provided on indent Sample

coordinator

If non wash program; coordinate with R&D pattern coordinator and get

pattern pulled from pattern department or pattern store with all necessary

documents required for sample making (Documents- techpack, BOM,

PAM comment, sample print/ embroidery/ artwork or strike off)

Sample

coordinator/ R&D

pattern coordinator

If wash program; check shrinkage received from marketing on indent and

update CAD to release shrinkage added pattern

Sample

coordinator/ Plot

coordinator at

CAD department

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Coordinate with R&D pattern coordinator and get shrinkage added pattern

pulled from pattern department along with all necessary documents

required for sample making (Documents- techpack, BOM, PAM comment,

sample print/ embroidery/ artwork or strike off)

Sample

coordinator/ R&D

pattern coordinator

Prepare style file Sample

coordinator

Coordinate with material collector and get the package collected from

merchandising. Package contains BOM copy, approved fabric and thread

card. Trims for sampling and finishing

Sample

coordinator/

Material collector

Verify sampling package and make sure all required styling information

and trims available in the package to proceed with sample making

Sample

coordinator

If package or information received from marketing team is deficient;

instruct data entry operator to reject sample indent and inform

merchandiser to release fresh indent for sample making

Sample

coordinator/

Material collector/

Merchandiser

Review BOM and explain fabric details to cutter and hand over fabric

package for cutting

Sample

coordinator/ Cutter

Collect cutting package and get required marking done by cutter/

supervisor and dispatch cut panel along with the pattern for printing/

embroidery or any special embellishment as per style requirement

Sample

coordinator/

Supervisor/

Embroidery or

Printing unit

Collect panel back from embroidery/ printing/ embellishment and get the

panel checked by supervisor/ QA or merchandiser for correctness of

design/ color and position before completing the sewing package

Sample

coordinator/ QA/

Supervisor/

Merchandiser/

Embroidery or

Printing unit

Hand over consolidated package to line supervisor (Pattern, Cutting,

Trims, Original sample and Style file)

Sample

coordinator/

Supervisor

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Line supervisor to ensure QA/ Technician/ IE is called to clarify all style

details before loading of style

Floor in charge/

Supervisor/ QA/

Technician/ IE

Style to be loaded on line once all details are clear to the supervisor and

tailor

Floor in charge/

Supervisor/ Tailor

QA/ IE to audit style on line to ensure all construction detail as per

customer requirement and PAM comment is followed

QA/ IE

Garment line out- Inspect the sample for correctness as per customer

requirement and PAM comment, sample found acceptable ; coordinate

with finishing team and get the pre wash finishing done

QA/ Finishing

team

Collect sample and dispatch for wash along with wash standard Sample

coordinator/

Washing unit

Follow up and get washed garment back from washing unit and hand over

the garment to QA

Sample

coordinator/

Washing unit/ QA

Coordinate with finishing team and arrange for final finishing of the

garment

QA/ Finishing

team

Review garment and ensure sample meets internal and external customer

needs as specified by buyer/ IED

QA

Organize technician review and post review. Organize packing as per the

standard and handover package to R&D coordinator as per review sheet

and original sample

QA/ Technician/

Sample

coordinator

Dispatch sample with DC( Delivery Challan) to merchandiser along with

original sample, review sheet and left over trims and accessories

QA/ Merchandiser

Update sample dispatch information to R&D data entry operator and the

operator to update entry information into sampling software

Sample

coordinator/ Data

entry operator

Return left over fabric with DC to fabric stores through the fabric collector Sample

coordinator/ Fabric

collector

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Return pattern package to pattern stores/ pattern department Sample

coordinator

Major functions of the sampling department

Planning and execution of correct samples on time

Ensuring the sample quality, construction, measurement is as per the customer

requirement

Looking after the sample fit and overall presentation of the sample

3. Design/ product development

This is one of the service/ support departments of the company. This department is not buyer

specific and works for all the buyers that the company caters to. The major role of this

department is to get business for the company. The design team works in two manners: Firstly,

as per the requirements and specifications of buyer and secondly, for company’s own collection.

Showrooms are there for meeting as well as presentation for new development/ line adoption to

the buyers.

Functions of the design team:

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Product Development

Internal DesigningOwn

Design

Line (GE

Collection)

Inspirationa

l

External Designing

Techpack

Showroom Management

Internal Designing

The design team keeps a trained eye on the market, identifying and forecasting emerging trends

in styling, fabrication, color, embellishments, shapes/ silhouettes and surface treatments. This is

done with the help of many sources like fashion forecasting websites, magazines, trade journals,

buyer trends, etc. The company’s designers work on two core seasons per year as well as many

“Fast Track” collections. These collections help in the growth and development of the business

as they showcase the company’s capabilities to old as well as prospective new buyers.

External Designing

This department serves value to the buyers/ customers who do not have their own fully equipped

design studios. The product development department can provide such buyers with mocks or

samples which may translate into bulk production orders.

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Mock or samples will be prepared for selection

If selected, meeting samples will be prepared

Costing and Negotiations

Fit samples

Grading

Order Confirmation

Show Room/ Style Vault/ Design Studio

Show rooms/ style vaults are the places where the new products developed and the bulk samples

of already delivered orders are displayed. Show room management is the technique which has to

be implemented to ensure to get a life time customer through the right presentation in the show

room. Show room is the place where the potentiality is engraved; capability is displayed to

ensure to get the life time customer. A platform to gain or lose a customer during a presentation.

A place to build up confidence to sell the right product to the right customer and to exhibit the

latest collections of sample products which attract the customer.

Functions of the design team in show room management:

Thematic display of new products developed for buyer and season presentation

Studio V.M/ display design and execution

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Buyer inputs via the buying house/ designers/ agency

Development of Lookboard

Mock or samples will be prepared for selection

If selected, meeting samples will be prepared

Costing and Negotiations

Fit samples

Grading

Order Confirmation

Fabric and mock display as per season/ buyer brief

Showroom management and personal grooming:

Certain set of commandments related to personal grooming and code of conduct are to be

followed when meeting a buyer at the showrooms so as to attract new business to the company.

Some of these are:

Continuous communication and correspondence with the buyer

Keeping all the materials/ styles/ information ready at hand in case of urgent requirement

Drawing up a proper agenda for each and everything

Special care to be taken for personal hygiene and grooming

Ensure to make the buyer aware of all the in house facilities/ capabilities/ product range

Being a good host

4. Pattern/ CAD

CAD stands for Computer Aided Design. It is one of the most important departments of the

export house; acting as a “service/ support” department for merchandising and sampling. The

working of these two departments highly depends upon CAD department. Without CAD it is

very difficult for these departments to move ahead. The CAD department at Gokaldas is

employed with skilled and specialized pattern makers, marker makers, graders, manual cutters

and coordinators. Everyone has a defined set of tasks to be performed. The CAD department at

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the head office works only for sampling. In case of bulk orders, pattern to calculate the

consumption of bulk orders is given by the CAD department at the head office and the actual

patterns and markers are made at the respective factories itself.

Major responsibilities of the CAD department are:

Planning and execution of pattern on time and as efficiently as possible

Ensure dispatch of correct TEXO (mini marker) to marketing

Ensure dispatch of correct pattern to R&D

Ensure dispatch of correct graded pattern to R&D/ factory

Software used: Gerber Technology

Accumark Version 8.5

Accunest

The CAD department at the head office is equipped with Plotter and Cutter machines. The basic

two types of machines are:

Gerber plotter: This machine only plots and the cutting is done manually. Bigger patterns

with greater paper lengths can be plotted on this machine.

Plotter and Cutter: Plotting as well as cutting is done on this type of machine; however

markers with less patterns and smaller lengths can only be plotted on this type of

machine.

Both the machines are system automated.

Basic workflow of the CAD department is as follows:

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Pattern: A pattern is the parts of the garment in 2D incorporating specific style details, specific

measurement, size of the garment and also marked with grain line, notch mark and dart line

which is to be used to make a garment in 3D.

Grading: Grading is expansion or reduction of base pattern of garment parts without changing

the styling or aesthetics of the garment.

TEXO marker: TEXO marker is a graphical representation of the pattern pieces placed on a lay

to ensure optimum utility of fabric.

Types of Marker: various types of markers are as follows.

One way marker: All the parts of the garment placed in one direction is called one way marker.

Normally used for fabric with napping.

One garment one way: All parts of one garment placed in one direction and all the parts of the

other garment placed in the other direction within the same lay is called one garment one way

marker.

Two way marker: Parts of one garment placed in two different directions is called two way

marker.

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Receive techpack and indent from merchandiser

Techpack and indent reviewed by coordinator

Conduct DFM meeting (Design for Manufacturing

Pattern making on CAD

Marker Making

GradingPlotting

and Cutting

Four way marker: Parts of one garment placed in all four directions is called four way marker.

Normally used for polywadding and non woven interlining.

5. Marketing and Merchandising

Merchandising is the department which mediates marketing and production departments.

Merchandisers act as mediators between the export house and the buyers. Merchandising

department is responsible for the costing as well. In any case, the merchandiser is the person

whose responsibility is to execute the orders perfectly as per the costing and pricing. The

function of the merchandising department begins with the sourcing for the new order or the

repeat order, and continues till the shipment deadline has met. They know what buyers want and

what the company is able to and willing to deliver. They are responsible for timely execution of

the orders. The merchandiser has become an indispensable unit in the export cycle, managing

and handling not only the follow up of the orders but the entire supply chain. They carry out pre

production planning with the help of the production manager so that the order gets completed in

a smooth and organized manner on time.

The merchandisers keep track of all the departments’ progress with their orders. They maintain a

copy of the documents from all the departments, which show the status of the orders in those

departments. The merchandisers discuss the details of the tech pack with the QC’s and pattern

masters and negotiate with the buyer if there are any changes to be done. They get the samples

made under their supervision. Placing order foe sampling fabric and trims is also merchandiser’s

responsibility after getting the approval for the same.

ERP is used at all stages from raising a purchase order to ordering trims and fabrics to follow ups

talking about the use of ERP system in the merchandising department, all the merchandisers are

given an ERP code and password which they use to access their ERP account. Even for placing

an order for trims and sampling, it has to be done through the channel of ERP.

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Department Functions

a. Communicating with the buyers

It is one of the most important functions performed by the merchandiser. From the time of

initiating the contact to making the sale, then procuring the orders, getting samples approved and

following up on production, buyer contact is maintained. The buyer has to be kept at both pre

and post shipment stages. It is because of his/her link with the buyer that the merchandiser is

synonymous as a buyer’s representative within the organization, and similarly to the buyer he

represent his own organization. Thus the success of an export organization largely depends on

the efficiency of the merchandiser’s ability to handle and maintain buyer contact.

b. Sampling

The merchandiser has to make sure all the samples are sent on time to the buyer as per their

demand and requirements. It is the merchandisers’ responsibility to arrange all the materials

required for sampling and deliver to the sampling unit on time. After sending the samples, the

merchandiser has to follow up with the courier department and inform the buyer regarding the

details of the package so as to track the package. The merchandiser has to ensure that all the

buyer comments are incorporated once the sample has been reviewed by the buyer.

c. Costing

The most important function of the merchandising department is to calculate the total cost of the

garment. It is the job of the merchandiser to estimate the initial cost correctly and also negotiate

the cost of production with buyer before receiving the final P.O. The costing should be such that

it suits the buyer and also the company. Initial costing is done so as to get an idea of the likely

cost to be incurred after getting the SAM of the garment, fabric consumption from CAD, fabric

price and quality from sourcing, etc. Changes are made later on according to any changes in the

styling, negotiations with the buyer, etc.

Major costs to be considered are:

Fabric

Trims

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Packing

Value added processes (Washing, Printing, Embroidery, any other)

Other costs (Testing, Sampling, Courier, Discounts if any)

Cost of making

A cost sheet includes:

Buyer name

Style

OC number

PO reference

Style Description

Season

Delivery Date

Quantity

SAM

Date

FOB price

Currency

Conversion Rate

Manager and Merchant name

d. Bulk sampling

The merchandiser has to coordinate with the factory regarding the production size sets and the

pre production samples; made at the factory. The merchandiser has to ensure the samples reach

the buyer on time and follow up for the approval of the sample.

e. Bulk order processing

Once the orders are booked the merchandiser is required to follow-up on production. Because of

the level of interface between the buyer and the merchandiser, the merchandiser is best equipped

to instruct the production department about the product requirement of the buyer. The

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merchandiser is also required to keep the buyer up-to-date on the status and progress of his order

through the production process through weekly updates.

f. In process inspection

As the merchandisers interface with the buyer is frequent and ongoing, it therefore becomes the

merchandiser’s responsibility to ensure the product meets with the buyers quality requirement.

The merchandiser is required to do random quality checks on the merchandise at various stages

of production. However, at all time he has to control quality from a commercial viability angle.

g. Maintenance of files

A merchandiser might be handling more than one buyers or orders at once. In order to prevent

confusion and better management of work the merchandiser has to maintain separate files at each

stage for different buyers.

h. Mails

All mails to be answered point to point and the concerned marketing manager to be in CC on the

same.

i. Customer complaints

Ensuring that no customer complaint is missed out and try to resolve the complaints by analyzing

the complaint and corrective/ preventive action to be formulated.

Departmental Objectives

1. Send complete sampling packet to sampling department immediately after the sampling

indent is released.

2. Generate TNA and achieve OTP for sampling and order shipment stage.

3. Ensure all approved materials along with complete PO packet delivered on time to the

factory.

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4. Clear approvals to the factory:

Fabrics/ Trims

Washing approval

Embellishments approval

Packing approval

5. Achieve customer satisfaction

6. Maintain minimum level for sort, set, sustain and safety.

Department Hierarchy

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COO

General Manager

Manager

Merchandiser

Qualities of a merchandiser

A merchant must possess the following qualities for efficient and effective working :

Planning Capability: Merchandiser should be capable of planning, based on the planning the

order is to be followed. If the planning is not done properly it will directly affect the delivery

time of the order.

Decision making: For a Merchandiser, decision making power is most important. They should

think about the decision to be taken and to act in a right way.

Communication Skill: The communication is very much important to promote the business

activity. The merchandiser should be able to communicate well with the buyers as well as other

service departments and ensure to pass the correct message for effective working.

Knowledge about the field: Merchandiser should have adequate knowledge about the garments.

Computer knowledge and technical knowledge to communicate with different people in the

business is a must.

Co-ordinate & Co-operate: Merchandiser is the person who has to continuously co-ordinate

with the number of departments. To Co-ordinate with different people in the industry they should

be co- operative.

Monitoring ability: Merchandiser should monitor to expedite the orders.

Other qualities: Education, Experience, Situational Management, Ability to Evaluate,

Dedication, Knowledge of expediting procedures.

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6. Industrial Engineering

This department set standard time of a product, thread consumption, line set up. It is majorly

responsible for factory productivity and efficiency controlling and improvement.

The IE department is majorly responsible for the calculation of the SAM (standard allowed

minutes) and thread consumption.

SAM calculation: SAM stands for standard allowed minutes. SAM or Standard Allowed

Minute is used to measure task or work content of a garment. For the estimation of cost of

making a garment SAM value plays a very important role. The SAM calculation is done at two

stages: firstly for costing purposes or during the sampling stage and secondly during final

production (so that all the changes made in the construction of the garment during the various

sampling stages can be accommodated before calculating the SAM for bulk production stage).

The SAM is calculated based on either the techpack, measurement chart or a sample garment as

given by the merchant. The SAM is calculated by the technician and accordingly provided to the

respective merchant.. In case the SAM is excess and the cost is going too high because of high

SAM, the IE technician try and simplify the garment without changing its outer appearance. The

software used for SAM calculation is Pro SMV.

How SAM is calculated: Each technician has a list of operation breakdowns for basic styles of

different garments; and also the machine to be used for that particular operation. Based on that,

the basic SAM of a garment is calculated. Any extra operations in the garment; for example, an

extra pocket, extra buttons, etc. are added separately and the final SAM of the garment is arrived

at. Also while calculating SAM; an allowance for 13-15% is added for workers’ fatigue, etc

Thread Consumption: Thread consumption is the total meters of thread required to make a

garment covering all the operations.

A thread consumption report includes the following:

Style

Description of garment

Size

Order quantity

34

Buyer

SAM

Date

Technician Name

Merchant Name

Operation Breakdown

Seam length in centimeters

Stitch type

Wastage

According to the operation and sample garment, the technician measures the seam length of each

part. The frequency of the operation is checked and multiplied with the seam length measured.

This is done on the basis of stitch type. A total of all the operations are taken for the particular

stitch type and total consumption is arrived at (in centimeters). To arrive at the actual

consumption, the total consumption is multiplied by the factor and some extra consumption and

converted into meters. Factors are the already calculated machine’s thread consumption factors

per centimeter. The wastage percentage is calculated based on the order quantity and the SAM.

There are prescribed wastage percentages for various order quantities, numbers of machines and

the SAM.

7. Export Documentation & Logistics

35

The export documentation & logistics department is responsible for export related

documentation, dispatching goods to ports and communicate with buyers warehouse and

distribution center. The major functions of the department are as follows:

Invoicing

This team is responsible for generating the invoice for various orders and making sure all the

details are correctly and completely filled in the invoice. When the goods are ready, the

production department issues the invoice request along with the buyer’s P.O. and factory packing

list. While making the invoice, the invoicing team checks for the following in the invoice

request: Quantity, Price, Mode of Shipment, Payment Terms, Fabric/ Accessories. Maximum of

the shipments are sent on FOB terms, by sea. After checking the above details, an invoice

number is allotted.

At Gokaldas Exports, five series of invoice numbers are used:

GI- For woven garments

GIP- For knitted garments

GE- For woven garments

GEQ- For knitted garments

SEZ- For goods manufactured at SEZ, Chennai

For domestic, two series are used; one each for GI and GE.

36

Functions

Invoicing Shipping Advising Banking Drawback

The packing list also has the same corresponding invoice number. All the invoices are recorded

in the invoice register. The invoice register has all the details, such as truck out date, bill of

lading/ AWB bill no and date, negotiation date, etc. With the invoice number on the invoice

request, along with the factory packing list is forwarded to the respective logistics team, for

booking the space with consolidator/airfreight forwarder.

The invoice/ packing list copies are then distributed to shipping/ customs/ production/ advising/

banking. On an average, 15,000 invoices are generated per year.

Shipping

The department has three shipping teams and each team handles the shipments of a group of

buyers, allocated to them:

Team 1

Exports: Gap Inc., Mexx, O’neill, Maverick, A&F, MGB, Marks & Spencers, Stock lot

Buyers

Domestic: Adidas, Nahar Retail, Reebok, Mothercare

Re-export: Defective fabric/ accessories/ machineries, etc.

Team 2

Exports: Columbia, Levis, Dillards, Nike, Lafprom, Macy’s, Chevignon, Carrefour,

Spring Field, Pacsun, Oceanic Trading, Tesco, Haggar, YKM Turkey

Domestic: Benetton, Spykar, Reliance, Arvind, Levis, Indian Terrain, Madura Coats, Jiny

Jony, Metro, Puma, Nike, ITC, Indian Rayon

Courier Shipments: All courier commercial sample shipments given by the merchandisers

are sent through the nominated agents.

Team 3

Exports: Puma, Sixty S.P.A, Diesel, Preca Brummel, H&M, Oilily, Fila, El Corte Ingles,

Guess

37

On receipt of the invoice request and the packing list from invoicing, the shipping team sends the

booking to their respective forwarder/ shipping agents. Most of the shipments are routed through

Chennai/ Tuticorn port. Some are going through Mumbai port also. The invoice and packing list

are then sent to the CHA (Customs House Agent; who has license to file the pre-shipment

documents, arrange for custom inspection, co-ordinate with the custom house for drawback) on

the day of trucking out the goods. The goods are dispatched by the shipping team in co-

ordination with the production/ factory and the transport company. Details of the goods sent are

informed to the CHA, so as to organize the custom clearance of goods and documents, and hand

over to the forwarder.

The original/ consignee set of documents (prepared by the advising team) are forwarded by the

shipping team to the consolidators, for releasing the transport documents. Consolidator/

forwarder are the one who collects shipments from all the vendors in a particular region and

arrange for shipment as per the buyer’s instructions. Most of the buyers have their nominated

freight forwarders, so the consignment is custom cleared through the CHA and handed over to

the forwarders, for planning the shipments. The necessary B/L, FCR, AWB instructions are

given by the shipping team to the forwarders. After this, a list of invoices is distributed to

banking and advising, along with the invoice folders, for further action. The CHA collects the

B/L, FCR, AWB and couriers it to the vendor.

Some major buyers and their forwarders are:

Nike, Macy’s, Mexx, Dillard, Tesco, Puma - Maersk Logistics

Nike (Asia & Middle East specific) - Schenkar Logistics via Chennai

Gap, Columbia, Spring Field, Nike (air) – Expeditors

Pacsun, Haggar, H&M, Gap/ Nike (for some shipments) – APL

Diesel – Expo Freight

A&F- JAS Forwarding

Nike (air) – Atlas Logistics/ EGL Logistics/ DHL Courier

O’Neill – DHL Danzas

MBG/ Metro Group & Carrefour – MGH Logistics

Liz Canada – Chakiat Agencies

Oilily – Freight Systems

38

Advising

The main function of this department is to apply for required documents needed for custom

clearance at destination, such as certificate of origin, GSP from ‘A’, attestation by embassy, etc.

The advising section after taking required documents such as invoices and packing lists, releases

the folders to the banking section. All the countries need the certificate of origin, in original,

along with invoice and packing list to clear the goods. Application is sent to the Chamber of

Commerce, AEPC, and Bangalore Chamber of Commerce for the certificate of origin.

GSP form ‘A’ is applicable only for the goods manufactured out of locally procured raw

materials. This is needed only by European customers, to avail some duty concession. (European

community encourages the import from developing countries, by giving concession on import

duty). Canada Customs Invoice is required only for shipments to Canada. Annexure III is

applicable only for shipments to Mexico. For countries like Brazil, Turkey and Argentina; the

certificate of origin has to be legalized by the respective embassies, at New Delhi. An expense of

around Rs. 4,000 is incurred per document. From Nike and Puma, these charges are collected.

The advising department organizes all these documents as per the requirement of each country

and either hand them over to the forwarder or courier directly to the buyer/ agents. All the

documents pertaining to a shipment; should match in all respects.

Banking

The folders released by the advising team are received by the banking team. Documents are

prepared based on the payment terms.

If the payment is through L/C, the documents are negotiated through the bank after receipt of

transport documents. L/C bills normally take 25 to 30 days to realize. However, nowadays, to

avoid bank charges (1% to 1.5%) at both ends, many buyers have opted for different modes of

payments such as open account, trade card, TT payment, documents against payment, etc.

39

For buyers like Gap, Dillards; the original documents are sent on open account to their buying

offices, which is paid between 30 to 45 days from the date of shipment. For Levis, the payment

comes after 35 days from the receipt date at the destination. For Tesco shipments, the payment

term is 60 days from the date of shipment. For Nike, Columbia and Spring Field, the payment is

through trade card platform. For Nike, there is interconnected software whereby the invoice is

created automatically by picking up the details from the scan files and Nike purchase orders. The

payments are realized between 25 to 30 days. For the buyer Spring Field, the payment is received

90 days after the shipment, the interest cost for 90 days is taken care at the time of costing. Some

buyers buy the goods on TT terms; they pay immediately on receipt of the goods/ documents.

All records and registers are maintained to monitor/ track the payment. If payment is not

received on the stipulated date, reminders will be sent to the buyer/ buying house. If any

discrepancy in price or any discount is sought, the matter is taken up with the merchandisers and

directors, to clear the payment.

For any shipment, it takes minimum 30 days to get the money and the money is blocked. As

finance is required for day to day expenditure and payouts, the export bills are discounted with

the bank, on interest. Other facilities like packing credit, pre shipment finance are available from

the bank as well.

Follow up is done with bank to get the realization advices. All the purchase/ discount advices

and realization advices are passed on to the accounts department for accounting purpose.

Drawback

For the GE shipments, where local raw materials are used, government reimburses certain duties

paid while procuring the raw materials. Presently, the system is that customs department releases

the drawback; which is followed up by the CHAs. Records for receivables and receipts are

maintained.

40

Workflow of the documentation & logistics team:

41

Start

Receipt of invoice request from production department

Mode of Shipment

Inco terms

Mode of Payment

Cargo booking and preparation of invoice

Invoice to customs

department

Invoice to accounts

department

Invoice to production department

Invoice to marketing

department

Truckout instructions to shipping from production

departmentTruckout instructions to shipping from production

departmentTruckout instructions to shipping from production

department

CHA- Cargo custom

clearance at ports

To nominated freight

forwarders/ consolidating

agents

To buyer directly for information

Consignee set of documents

Preparation of post shipment

documents

Release of transport

documents by forwarder

To buyer directly for information

To buyer in case of open A/C & TT

To bank in case of L/C or D/P

Online payment through trade

cardBank advises and copy documents to accounts

departmentReceipt of payment

Accounts

8. Production Planning and Control (PPC)

PPC controls the planning and give the guidance from fabric to shipment. The main function of

the PPC is to create deadlines for each process and coordinate multiple activities.

Role of PPC

a. Feasibility Study: Based upon

- Type of machine

- No. of machines

- No. of processes involved

- Fabric type

- Order quantity

b. Capacity Study: Based upon

- Availability study

- Planned hours

- Machinery capacity

- Expected absenteeism and turnover

- Planned efficiency

c. Budget Planning: Based upon

- Committed delivery date

- Order quantity

d. Line Planning: Based upon

- SAM of the style

- Efficiency of the operator

- Efficiency of the line

- No. of lines in the unit

e. Unit Efficiency: Based upon

- No. of lines

- Line efficiency

- Production dates

42

Process – Gokaldas Exports

ERP (Enterprise Resource Planning)

(WFX) World Fashion Exchange

ERP system assumes a vital role in the day to day functioning of the organization. The ERP

software used at Gokaldas Exports is WFX. It is JAVA necessary software. It attempts to

integrate all the departments and functions across the company into a single computer system

that can serve all those different department’s particular needs.

ERP is the core of all the working of the company. The structure is designed in such a manner

that it is needed at each and every level whether it is new development, production, purchase,

purchase orders, export and import of materials, etc. The software customizes the works of

different departments in such a manner that at every point when the information is needed, it can

be easily extracted by this. It is an information system which organizes each and every entry of

different styles being undertaken.

ERP is used at all stages from raising a purchase order to ordering trims and fabrics to follow ups

of styles. For example, talking about the use of ERP in merchandising department, all the

merchandisers are given an ERP code and a password which they use to access their ERP

account. Even for placing an order for trims and for sampling, it has to be done through the

channel of ERP.

The major functions for which the software is used are:

Sample Indent Capacity booking (Buyer Block Booking) Style Creation and Techpack entry Cost Sheet entry Bill of Material Order Confirmation (destination, size, date) MRL (Materials Required List) generation

43

Order Process Flow (SOP)

Step Activity

1 Merchandiser receives the order confirmation from customer through COO/ GM/

Manager

2 Checking of order against the cost sheet and revert to the buyer in case of any

discrepancies

3 Giving the internal cost sheet to CFO to get it signed with profit grading (A, B, C)

4 All new orders should not be confirmed without CFO’s signature on the cost sheet. If

the cost sheet is under C grade (loss); it has to be signed by the CEO before

proceeding with the order

5 Garment to be digitized enabling to browse the sketch in capacity booking and in the

MRL

6 Create style in WFX and proceed with the capacity booking

7 Capacity booking to be done on the same day as order confirmation; two copies of

the same duly signed by the manager/ GM/ COO/ GM- Production & Planning to be

given for the CEO’s signature

8 Prepare T&A and also the PCD follow up chart (in excel sheet) from the red file card

data available in WFX

9 On the 10th day of capacity booking date, confirmed PCD should be given to GM-

Production & Planning

10 Prepare OC (order confirmation) file and Order Pouch (brown pouch) for each style

11 Keep TEXO/ sewing/ embroidery/ fabric consumption chart on the left side of the OC

file, MRL at the middle of the OC file and pink slip, counter copy of indent/ trim,

slip, shipment advance on the right side of the OC file

12 Also keep the buyer’s purchase order sheet, measurement chart on the left side of the

order pouch, all other relevant documents pertaining to the style- quality swatch,

color standard, lab dips/ desk looms/ strike offs, style approval comments, techpack,

test report, etc. on the right side of the order pouch

13 Get the DFM report in place of PAM and give to R&D along with pattern/ sampling

44

indent

14 Make pattern indent, texo requisition and send it to pattern department through soft

copy

15 Organize sampling materials through adhoc indent/ make sample indent and send the

soft copy to R&D along with trim card attached to it

16 All items to be ordered within 1 to 3 days on receipt of the order

17 Merchant should give a complete catalogue of approved fabric qualities and

colorways and all approved trims, duly signed off by marketing GM’s prior to release

of indents to sourcing department. These catalogues should have the costed price and

conversion rate clearly mentioned against each item, to facilitate speedy processing

of the indent

18 Items for which details are not available should be kept “awaited” in the MRL on the

first day of ordering material itself

19 Get the TEXO (marker) from CAD department and consult the auditor and work out

the fabric consumption, enter the same in BOM line. Consumption of trims with

running length trims to be taken from CAD technicians

20 Generate MRL (after filling all BOM lines including sampling requirement and

production remarks) and check the MRL thoroughly before sending it to auditor for

approval

21 After sending the MRL for approval, take the print out of MRL and file it in the

middle of the OC file and immediately submit the OC file, order pouch and original

sample to the auditor for checking the MRL (along with the internal cost sheet duly

signed by CEO)

22 Once the MRL is approved by auditor, indent is generated which is to be assigned to

respective person at IAD (inventory allocation department) for regular items and to

the sourcing manager for new items

23 Until catalogue is ready, marketing to give hard copies of fabric indents to IAD

together with quality swatch and color standards. IAD, in turn, after checking out

stocks, will send the same hard copy and attachments to concerned fabric merchant.

Hard copy of the indent must have the costed price and the conversion rate clearly

signed off the by COO or GM

45

24 On receipt of fabric indents, fabric merchants will take the indents to fabric managers

for price negotiation and delivery confirmation and the fabric managers, in turn, will

meet COO of fabric department to discuss and get his confirmation on prices and

deliveries

25 COO of fabric department to define which manager is responsible for which mill as

for imported fabrics, and same to be advised to all of sourcing and marketing

26 Trim merchants/ team leaders will take indents to COO of sourcing for sign off on

prices and deliveries

27 Sourcing coordinator to ensure all materials are ordered within the stipulated time

frame. If not ordered, reason for delay to be reported to the CEO. Also liaise with

fabrics and trims teams to ensure all materials are coming in time to meet P.O.

packets

28 Sourcing coordinators and merchandisers should maintain and update the

walkthrough chart on a daily basis

29 Review of OC file/ order status to be done along with the manager/ GM

30 Follow up for the lab dip/ desk loom/ strike off and get it approved by the buyer at

the earliest to maintain PCD

31 Send the PI to buyer and follow up for the LC

32 Make the indent for PP sampling after receiving the sampling yardage

33 Arrange lab test report for sampling and for garment (if required)

34 Make revisions in WFX if buyer makes any amends in quantity/ color/ delivery date,

etc.

35 Apart from quality/ color; merchant must check the width and shrinkage of the

shipment sample send by the fabric supplier, to avoid consumption variation at the

time of bulk garment production

36 Check with originals and approve the in house cards received from godown

37 Two weeks before the PO packet date, final confirmation of PCD must be given

again to GM- Production & Planning

38 Final approved sealer sample must be given to CAD department for sealing and to

verify the TEXO to be issued to the factory is correct in all aspects. Recheck the

consumption with auditor, in case of any changes. PO should be released with correct

46

consumption as per approved sealer sample

39 Issue the PO (production order) along with PO packet, after getting the approval on

final sample. PO to be issued 3-5 days before PCD (35 days before delivery date)

(All items to be ordered and cost sheet to be updated before issuing PO)

40 Get the factory allocation from HOD of the production department

41 Approval to be given to factory for fabric/ trims/ size set, etc.

42 Conduct pre- production meeting (PP meeting) at factory

43 Get the TCAR (Trims consumption approval report) and MCPR (Marker cut plan

report) through the production coordinator and verify the actual consumption with the

auditor

44 Obtain production status from factory/ from production department and update the

buyer/ buying house people

45 Give the packing approval and obtain the final inspection date

46 Inform the final inspection date to buyer’s QC well in advance in writing

47 Get the yellow slip (document for preparing shipping documents like invoice,

packing list, etc.) from production coordinator and fill the details and return back the

same to production coordinator with a copy of the buyer’s purchase order sheet

48 Book the container/ space for the shipment (sea or air) through shipping department

49 Follow up for the final inspection

50 Send the shipment advice to the buyer and keep a copy in the OC file along with the

pink slip

51 Provide the inspection certificate and copy of fabric test report to documentation

department if required (as per LC)

52 Coordinate in the payment follow up with documentation department

Order pouches to be filled with:

47

a. Order sheets

b. Color swatches

c. Specification sheet

d. Strike off approvals

e. Laboratory test reports

f. Azo reports

g. Accessories approvals

h. Style and fit approval details

i. Amendments to order; if any

j. Inspection reports

k. Sample feedback with details of actual fabric width, shrinkage found, pattern corrections

and any changes from spec to sample

OC file should contain:

a. MRL form

b. TEXO marker

c. Both internal and external cost sheet

d. Actual consumption slip

e. PAM/ DFM report

PO packet checklist:

a. Fabric in house

b. Trims in house

c. Packaging trims in house (within one week of PO packet issue)

d. Buyer techpack

e. QA file

f. GPT pass report

g. Approved trim card

h. Approved fabric card

i. PO patch sample

j. Wash standard

48

k. Print standard

l. Embroidery standard

m. Graded pattern

n. Approved measurement chart with zipper grading

o. Line design

p. TEXO

q. Buyer PO copy

r. GE PO copy

s. DFM report

Snapshot of the ERP software log in page

49

ARVIND BRANDS

Arvind Limited (formerly Arvind Mills) is a textle manufacturer and the flagship company of the Lalbhai Group. Its headquarters is in Ahmedabad, Gujarat, India.

It manufactures cotton shirting, denim, knits and bottomweights (Khakis) fabrics. It is India's largest denim manufacturer [3] apart from being world’s fourth-largest producer and exporter of denim

Today, under the Banner of “Arvind Brands” it retails its own brands like Flying Machine, Newport and Excalibur and licensed international brands like Arrow, Lee, Wrangler and Tommy Hilfiger, through its nationwide retail network. Arvind also runs a value retail chain, Megamart, which stocks company brands.

Key facts

Founded: 1995

Founders: Sanjay Lalbhai

They are: A leading domestic specialty retailer offering clothing, accessories and personal care

products for men, women, children.

Brands: Arvind Brands (owned)

Flying Machine Newport Ruf & Tuf Excalibur

50

Arvind Brands (licensed)

Arrow Lee Wrangler Gant U.S.A. EdHardy Izod Cherokee Mossimo U.S. Polo Assn. Billabong Nautica Energie

Headquarters:

Arvind Brands – Bangalore, India

51

Arvind Brands at Gokaldas Exports

Arvind Brands is one of the oldest and biggest buyers of Gokaldas Exports. They are a valued

customer for their brands; Arrow, Nautica, Bay Island, Flying Machine etc.

Arvind Brand Procedures with Gokaldas Exports

Query – Arvind Brands sends request for Proto Development to Gokaldas Exports.

Suppliers - Works with only nominated suppliers of fabrics.

Products Frequented – Denims, Shirts, Jackets.

Order Quantity – Approx 4.5lac pcs a year

Price – Ranges from Average to High as per the Brand

Payment Terms - Works on L.C. of 90 Days

52

The Lean initiative

Gokaldas Exports was a family-owned business founded in 1979 that had grown into India’s

largest apparel exporter by the mid 2000s.2 Its founder, Jhamandas H. Hinduja, had bequeathed

control of the company to three sons, each of whom brought in his own son. By the end of 2004,

Gokaldas had 258 production lines scattered in and around the southern India city of Bangalore.

The company was valued at approximately $215 million and exported nearly 90 percent of its

production. However, to maintain its already slim margins in an increasingly competitive

environment, Gokaldas needed to become more efficient. Company leaders hoped to improve

profits by 10-15 percent without adding resources and Gaurav Hinduja, COO of the sportswear

division and a third generation family member, became convinced that Lean would be the best

means to make this happen.

(Gokaldas Exports: A challenge of change; Stanford Business School, 2013.Case: SM- 213(A))

Nike’s Lean Challenge: Just Do It

Gokaldas depended upon a small number of critical customers for the bulk of its revenues. In the

first six months of 2004-05, for example, its largest buyer accounted for 49 percent of revenues

and its five largest buyers for 79 percent.15 Nike, the global sportswear company, was among

these critical customers and it, too, was feeling pinched by increased competition and rising

costs. Nike decided to address these issues in part by reducing production costs in its supply

chain, which was comprised of independent contract factories like Gokaldas. One of the

approaches it opted to promote was Lean.


TBM “CEO boot camp”

TBM is a global leader at teaching and implementing operational and business process

improvement through the training and application of Time Based Management strategies. The

TBM “CEO Boot Camp” is an annual event wherein participating executives visit factories that

are successfully implementing Lean practices and engage in direct discussions with their

executive counterparts.


53

Pilot and Persuasion

Gokaldas and TBM agreed to demonstrate Lean on a single line in the Euro Clothing Company;

the line they selected was operated by about 70 people and were producing 250 Nike jackets per

day. The team quickly determined the main problem on the jacket line to be uncontrollable work-

in- progress. By the end of the week, the number of jackets produced each day had increased

from 250 to 400 and the defect rate had decreased from 7-10 percent to 3-4 percent.


Senior Management Lean Leadership and Sustainment Training

An 11 day training program was organised by TBM for the senior management of the company.

The purpose of the training was:

Train in lean production principles

Importance of cultural development

Application of the training in their areas of responsibility

5S: A lean tool used for workplace management and standardization. The 5S are- Seiri, Seiton,

Seiso, Seiketsu, Shitsuke.

Kaizen: Japanese word meaning “continuous improvement.”

Kanban: It refers to a small cards attached to signal production and delivery actions.

JIT: Just in time is a system for producing and delivering the right items at the right time in the

right amounts.

Kaizen Promotion Office

KPO is the department created in the company that coordinates, implements and manages the

continuous improvement activities within the organization.

54

Gokaldas Exports Factories

At Gokaldas Exports, production is optimized through state of the art technology and

infrastructure. Computerized spreading machines, auto jig, sleeve setting and pocket welting

machines carry out the relevant processes with swift efficiency. Fully fledged embroidery,

printing, seam sealing, washing and dyeing sections are equipped for accuracy and speed. The

vital aspect of fusing is handled by highly trained technical operators on top of the line fusing

machines, to achieve the perfect quality required.

Highly organized production systems co ordinate seamlessly for optimal efficiency. Each unit is

streamlined, specializing in the manufacture of a specific product. Steady capacity generation

and strategic alliances with leading processing houses enable Gokaldas Exports to raise the bar

on quality and production standards.

The factories are automated with state of the art technology and ERP systems, generated towards

mass production. Gokaldas Exports produces and exports 3 million garments each month. There

are 100% export oriented factories, licensed for duty free imports of fabrics and accessories for

re-export. To give greater control over quality and shorten the product- to- market timeline, all

processes involved in garment manufacture are handled in house. Factories have their own in

built stores for fabrics and accessories, enabling them to complete one particular order at a time.

All in house facilities are integrated to facilitate speed, be it fabric cutting, fusing, finishing or

packing. So that, whether it is a large bulk order or a small specialized order, Gokaldas Exports

has what it takes to execute it on time.

The company’s factories are compliant with modern manufacturing practices to ensure higher

productivity and on time delivery. Gokaldas Exports provides the buyer a one stop shop

destination for any kind of garment right from ultra formal to ultra casual men’s, women’s and

children’s wear.

55

The manufacturing units are:

Sr. No. Factory Name Location

1 INTEX- I Intex I, No.31, Magadi Road,

Bangalore – 560079,

Karnataka – India.

2 INTEX- II The Intex II, #26, 2nd Cross, 3rd Main Road, Industrial

Suburb, Yeshwantpur,



3 INTEX- V Intex V, No.4, 1st A Cross, Kamakshipalya, Magadi

Road,



4 JDC JD Clothing Company, No.9, Industrial Suburb Rajaji

Nagar,



5 AA- II Atlantic Apparels II, Plot No.28 D & E, Belawadi

Industrial Area,

Mysore – 570018,


6 AA- III Atlantic Apparels-III, Survey No. A-7/1, Nacharam,

Rangareddy,

Hyderabad,

Andhra Pradesh – India.

7 WCA Wearcraft Apparels No.17/1-38/4-1, Industrial Suburb,

Yeshwanthpur,

Bangalore,


8 TA- I Triangle Apparels I, No. 804/75, 7th Ward, Jayapura

Road,

56

Tumkur – 572101,


9 TA- II Triangle Apparels II, No.106/5-9, Arabic College Post,



10 TA- VI Triangle Apparels – VI, # 25/26, 3rd Main Road,

Industrial Suburb, Yeshwanthpur,

Bangalore,


11 ECC- I Euro Clothing I, No.122/1, Doddabidarukallu Village,

Yeshwantpur,



12 ECC- II Euro Clothing Company II, T.B.Road, Srirangapatna,

Mandya District,


13 HPF Hinduja Processing & Finishing Unit No 2, 5th Cross,

Mysore Road,



14 HSW Hinduja Sports Wear I, No. 73/19/5, Industrial Suburb

Yeshwanthpur,



Hinduja Sports Wear II, No. 72/73, Industrial Suburb

Yeshwanthpur,



15 ICC- I International Clothing Company IV, No.180/1,

Yellakunte, Begur Hobli, Hosur Road,

Bangalore,

57


16 ICC- II International Clothing Company-II Survey No.113,

Hongasandra Village, Begur Hobli, (Near Bhondary

Factory) 7th Mile,



17 ICC- IV International Clothing Company IV, No.12, 'A' Block,

7th Mile, Near Bhandary Factory, Hosur Road,

Bangalore,


18 CCC- I Carnival Clothing Co, No.2/A-1, Chikkaveeranna Road

Cross, Bannimantap Etn,

Mysore,


19 CCC- II Carnival Clothing II & III Govindapuram , Main Road,



Carnival clothing company-II, Benganur Village

Bangarpet - KGF Road, Kolar,


20 WW- I The Wearwell I, no.17/A-34/A-1, Industrial Area,

Yeshwanthpur,

Bangalore,


21 WW- II The Wearwell II Industrial Estate N.H-206, Tiptur.

Bangalore,


22 VCC- I Venkateswara Clothing Company I, No.10, KHB Colony,

New Satellite Town, Yelahanka,



58

23 VCC- II Venkateswara Clothing Company II, No.10, KHB,

Colony Industrial Area Yelahanka,



24 GG- I Global Garments I, No.17/1-38/4, Industrial Suburb,

Yeshwantpur,



25 TUC The Unique Creations, No.44, Industrial Suburb, 3rd

Main, II Stage, Yeshwanthpur, II StageTumkur Main

Road,

Bangalore,

Karnataka – India,

26 GI Gokaldas India, No.21C & 21B, Survey No.34,35,36 &

37, Nallakadaranahalli, Peenya II Stage, Industrial Area,

Peenya,

Bangalore,


27 DMS Dress Master Suits, No.77, 3rd stage, Peenya Industrial

Area,

Bangalore,


28 R & D Gokaldas Exports R&D I, No.78, Mission Road,



Gokaldas Exports R&D II, No.10, Mission Road,



Gokaldas Exports (P) Ltd, R &D - III # 76/1, II & III

Floor, Mission Road, Kalingarao Road,


59


Gokaldas Exports R&D IV, No.39/2, II Main Road, CKC

Garden,

Bangalore,


29 GESEZ (Chennai) Chennai SEZ Division, No.6/1, II Phase, MEPZ, NH -

45, Tambaram,

Chennai (Madras),

Tamil Nadu – India.

30 IB (Denim washing

unit)

Indigo Blues, Plot No-2, KIADB Industrial Area,

Doddaballapur ,


31 GG III (Washing Unit) Global Garments III Annexe, No.40/2, 2-1 & 2-3, 1st

main, Industrial Suburb, Yeshwantpur,



32 Luckytex I (Embroidery

Unit)

No.17/A-34/A-1, Industrial Area, Yeshwanthpur,

Bangalore,


33 Luckytex III (Printing

Unit)

Luckytex-III, No.17/A-34/A-1, Industrial Suburb,

Yeshwanthpur,



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Atlantic Apparels Dress Master Suit Euro Clothing Company

Indigo Blue Intex Wear Craft Apparels

Euro Clothing Company Gokaldas India Global Garments III

Visit to manufacturing Unit- Dress Master Suits (DMS)

Fabric and accessories store

The fabric accessories stores are responsible to maintain all the fabrics and accessories/ trims that

come in house. The stores check the quality, quantity of the accessories/ trims and keep them

ready for assembling. The fabric comes in the form of rolls of different meters and varied

cuttable width and is checked for any holes or defects on the fabric relaxation machines.

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Cutting section

The cutting section is equipped with the Gerber spreader and cutter that ensure 100% perfection.

It improves the cutting process with minimal waste and cost. For some fabrics/ orders manual

laying is done as well.

The following flowchart explains the cutting room processes:

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CAD section

The CAD section provides the patterns for different styles. It is their responsibility to generate

efficient markers well before the PCD (Planned Cut Date).

Sewing section

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Marker making

Fabric laying

Fabric cutting

Checking cuttings

Stickering

Sorting/ Bundling

Stitching

Sewing is one of the main sections. The main function of the sewing department is to attach

different parts on the garment in the form of the assembly line. The sewing section is equipped

with different kinds of sewing machines like the feed off arm, overlock, button hole, bartack,

double needle overlock, triple needle lock, double needle chain stitch, triple needle chain stitch,

computerized welt pocketing machine, belt loop attachment machines, etc. The assembly lines

are well organized along with ironers and in line and end line checkers. Garment samples are

attached at critical areas.

Sewing section workflow

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Finishing

65

Received cutting from the Cutting Department along with style file and

patterns

Line is set as per the plan

Bundles are allotted to the respective individuals

Stitching starts

Inline checkpoints at critical operations

OK Not OK

Final checkpoints placed at the end of line

OK Not OK

Pieces counted and dispatched Alterations

Alterations

This section plays the most crucial role in ensuring 100% perfection of all the products. It is

inspected that all the features demanded by the clients are designed or not. The experts

thoroughly check all the products to make sure that the perfect products are delivered to the

client. The products carry the brand image of the company. That’s why utmost care has been

taken in this section to ensure that all the products are faultless. The major functions performed

in this section are extra thread cutting, ironing, size check, snaps/ buttons checking, final

inspection, heat transfer label if any, tag attachment, metal detection, hard tag attachment, shade

segregation, size segregation, folding and packing.

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The finishing section process flowchart is as follows:

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Thread Cutting

Initial Checking

Pressing (Flat & Armhole)

Measurement Checking

Snaps/ Buttons Checking

Final Checking

Tagging

Heat Transfer Label (If any)

Metal Detection

Folding & Packing

Packing to box

Inspection of ready to ship goods

Dispatch shipment

Factory organization chart

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COO

GM- Production

Factory Manager

Asst. Factory Manager

Floor incharge

Supervisors

Factory Manager

All Department

heads

1. Fabric2. Cutting3. Stores

4. Despatch5.

Maintenance6. Finishing7. Packing

GM- Quality

QAM HO QA

Quality checkers

Endline checkers

Inline checkers

Finishing checkers

PS Incharge

PSO

Needle issuer

KB checker

MD operator

Functional departments and their QMS Objectives

1. Manufacturing administration, Factory manager, Production manager

Objectives Method of

Measurement

Target

Achievements

OTP FPR 95%

Rejection FPR < 1.5 %

CPM FPR < Rs. 1.5

Absenteeism FPR < 8%

Attrition FPR < 8%

2. Fabric and accessories store


Measurement

Target

Achievements

Collect the material from the

central warehouse at least 1-3

days before PCD

95%

Store and ensure the issue of

material to cutting section/

sewing section, shade wise/ lot

wise/ width wise and shrinkage

wise as per the report of the

central warehouse

100 %

5S 5S Audit Level 2

Complete FCR and TCR within 3

days of PO completion

100%

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3. CAD section


Measurement

Target Achievements

Achieve and improve

approved marker efficiency

Approved consumption

report

Compare to approved

4. Cutting section


Measurement

Target Achievements

Maintain and keep

minimum 2 days of cut

stock of daily factory

requirement

Stock register 90%

FTR (First time right) Re- cutting log book 90%

Achieve 5S level 2 5S Audit Level 2

5. Sewing section


Measurement

Target Achievements

Adherence to GEX quality

guidelines

QAM report 95%

Adherence to HO line

design

IE scorecard 95%

5S 5S Audit Level 2

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6. Finishing section


Measurement

Target Achievements

Ensure finishing backlog is

not more than 2 days

Final audit 100%

Ensure 100% garments

packed are metal free

PS report 100%

5S 5S Audit Level 2

Achieve 95% FTR to

customer

Shipment log 90%

OCR report prior to

shipment to be sent to

respective G.M.’s

OCR log 90%

7. Productive maintenance


Measurement

Target Achievements

Track, record and reduce

the machine downtime

occurrence

Mechanic trend chart 95%

Adherence to TPM

guidelines for services

TPM chart 95%

5S 5S Audit Level 2

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8. Industrial Engineering


Measurement

Target Achievements

Verify and report HO line

design implementation and

any deviation thereof

IE scorecard 95%

Grade all operators and

checkers on skill matrix

Skill matrix form 100%

9. Quality control


Measurement

Target Achievements

Ensure all quality

comments of HO QA/

customer QA are

incorporated in bulk

production with corrective

action evidence

QA File 95%

Ensure implementation of

GEX quality guidelines

QAM report 95%

10.Personnel, H.R. and Compliance

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Measurement

Target Achievements

Ensure adherence to

recruitment policy

Recruitment policy 100%

Introduction and induction

of all new joiners and same

shall be documented

Induction log book 100%

Absenteeism Absenteeism report < 8%

Maintain social compliance

to statutory regulatory

customer requirements

Customer compliance

policy

100%

5S 5S Audit Level 2

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Garment Wash

The main washing units of Gokaldas Exports are GG III at Peenya and Indigo Blue at

Doddabellapur. Where Indigo Blue specializes in denim washing, non- denim garments are

washed at GG III. The washing division is equipped with automatic machinery with a processing

capacity of over 1, 25, 000 garments a day. Experts from Europe and Hongkong regularly visit to

update the technicians on the latest technologies.

Garments pass through various handling processes, which may render them dirty or stain them,

thereby reducing their aesthetic appeal. To restore this aesthetic value, they are subjected to

cleansing process. Also, at times a certain look has to be given to garments for which they have

to be washed with certain chemicals and techniques. For these purposes, garments are sent for

washing by the production department as per the buyer’s requirement.

Normally the fabrics are not asked to go for wash by the buyer. But at times, fabrics may be sent

for wash for a number of other reasons; like:

To control uneven shrinkage

To even out color shade

To lighten color shade

To improve the hand feel

To even out color shade variations

To remove printing smell

To execute a dyeing program

The units can handle all kinds of washes and also provide various desired effects. Following are

the different types of wash services available:

Wet Processes

1. Acid wash

2. Antique wash/ Vintage wash

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3. Bleach wash

4. Destroyed wash

5. Enzyme softener

6. Enzyme stone wash

7. Enzyme stone bleach

8. Fabric wash/ lay wash

9. Garment wash

10. Heavy bio poly wash

11. Ice wash

12. Medium stone wash

13. Micro sand wash

14. Paper touch garment wash

15. Potassium permanganate wash

16. Rinse wash

17. Rubber ball wash

18. Silicon wash

19. Softener wash

20. Stone wash

21. Twill wash

Dry Processes

1. Grinding

2. Grinding and Nicking

3. Hand sand blasting

4. Hand sanding

5. Tinting

6. Spraying

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Dyeing

1. Treatment Dyeing

2. Reactive Dyeing

Visit to washing unit: GG III (Global Garments III)

The washing unit GG III is mainly divided into three sections .i.e. the Inward Dispatch section,

the Washing/ Dyeing section and the Outward Dispatch section.

Inward Dispatch

In the inward dispatch section the garments are unloaded arriving from various factories. They

are counted and cross checked. Checking is also done for any issues in the garment. If everything

is clear the garments are issued for washing along with a ‘Job Card.’ The ‘Job Card’ contains all

the information like OC#, Style#, wash details, wash recipe, factory details, merchant details, etc.

This section checks the garment for different aspects such as:

Type of the material

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GG III

Inward Dispatch

Washing/ Dyeing

Outward Dispatch

The texture that is under demand

The feel and look of the garment under demand

Dye stuffs used for the garment

Types of chemicals that should be used to get the desired look and feel of the garment.

Effects of those chemical on the fabric

The sensitivity criteria of the fabric

The sequence of the processes

Temperature at which the garment has to be treated

Duration of the treatment

After coming to the conclusion of what recipe has to be used for the garment they start treating

the garment in the same sequence. There are separate bins for each factory in which the garments

are unloaded and taken for washing/ dyeing to different sections.

Washing/ Dyeing Section

The washing/ dyeing section is divided into four sections: Section A and Section B are equipped

with machines for all types of washes; Section C is utilized only in case overload or any kind of

backlog and Section D specializes in dyeing. All the sections are well equipped with horizontal

and vertical washing machines of different capacities ranging from 50 kg, 100 kg (for sampling

purposes) to 500 kg, 1,000 kg (for bulk orders).

Washing Machinery

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Horizontal Washing Machine: This machine is being used for washing garments and fabric

rolls. The number of these machines are comparatively less as the unloading of garments from

this machine is manual and can cause injuries to the operator.

Vertical/ Front loading Washing Machine: This machine is used only for washing garments.

Fabric lots are not washed in these machines because the fabric lot gets entangled in the front

loading machines. These machines are fully automatic and the garments are unloaded

automatically. This makes these machines much more convenient and easy to operate with less

dangers of injury.

Hydro Extractor: The garments are wrung in these machines to remove excess water after

washing. The garments are spun in drums which rotate at high speed squeezing the water out of

them. Excess water drains out through the drainage pipes.

Tumble Dryer: This machine evaporates out all the left over water from the garments making

them completely dry. Tumbling is carried out for varied time and varied temperatures depending

upon the fabric quality.

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Dry Processes

Apart from the wet processes, there is a separate section for dry processes like whiskering,

grinding, crushing, spraying, tacking, scrunching, etc.

The dry processes section is equipped with various machines and tools required for the various

processes. Many of the processes are done manually as well. The section is equipped with

manicoles especially for whiskering and hand sanding. Dry processes for sampling as well as

bulk are carried out in this section.

Outward Dispatch

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After all the processing, the garments are brought to the outward dispatch section and put into

the respective factory bins. They are further sent for checking where skilled checkers check the

garment for the following:

Hand feel

Abrasion

Color loss

Wash effects

Stains

Oil stains

Silicon spot

White spot

Zip tint

Patches

Pilling

Streaks

Fusing marks

Folding marks

Chalk marks

Print loss

Chipping off

Needle holes

Shade variation

Damages

The checkers are provided with the ‘Job Card’ at this stage; the backside of which contains the

washing standards to be filled by the checker. After all the checking is completed and the

garments have passed the AQL (Accepted Quality Level), they are weighed and dispatched to

the respective factories.

Treatment of new styles

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In case wash is required for a new style of garment, for which a new recipe is to be developed; a

trial wash is conducted for the new style before proceeding with bulk. The new recipe is entered

in the trial recipe book and issued for the trial wash. The trial washed garments are then sent to

the buyer/ merchandiser for approval. Based on the comments received from the buyer/

merchant; changes are made in the recipe and bulk is started. If the recipe proves good enough, it

is added to the permanent standard recipes.

Chemical issue section

The chemical issue section is like a store of various chemicals required for different washes. The

facility has a chemical issue section which issues the chemicals for the recipes for different

washes. The person in charge makes sure the right chemical is issued in the right quantity with

the right ingredients otherwise it can damage the garments.

Boilers

The facilities are equipped with boilers to provide generate steam. Steam pipes connect the boiler

and all the machines and the amount of steam can be altered with the help of valves present.

Steam is generated through a mixture made of groundnut seeds and shell which is a sustainable

way to create energy.

Procedure to issue the wash service

The procedure to issue wash service is as follows:

Mention the Style #, OC # and quantity in the indent.

If the garment has multiple types of washes, issue separate indents for the same.

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Separate indent is required for grinding and spraying.

If leather patches or appliqués are being used on the garment, garment needs to be

washed before attaching the embellishments to avoid bleeding of the fabric color.

Assign the indent to the ‘Production & Planning’ department.

Give the approved wash standard to the washing unit and keep the counter with the

merchant.

Approval on the 1st sample garment to be given at the earliest to commence the bulk

garment wash.

The Key Learnings

The organization is well organized and systematic.

The merchandiser is the connection or the key player between all the departments as

well as the buyer/ customer.

Every department has their key roles well defined, and the supervisors who keep track

of who is working on what in the department.

Sampling, CAD, IE and other departments are the main departments with whom a

merchandiser deals. Apart from these, the merchandiser has to deal with the factory

and production manager as and when required.

Collected fabric swatches which gave clarity about the different types of fabrics.

Visited company units and thereby observed the actual processes a garment goes

through prior to shipment.

Went through the techpacks, cost sheets, thread consumption reports, test reports of

various styles which gave me clarity.

Went through the OC file and Order Pouch of a style; which gave me an insight into

the various documents that are prepared for order completion.

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Gained first hand information and made observations from the various departments in

the export house.

Created development samples (shirts) for the UK based buying agency DPJ Clothing

which gave me a meaningful insight into the export industry.

Understood the difference between the working of an old buyer with prescribed

procedures and a new buyer (agency) looking for new developments.

Conclusion

Gokaldas Exports Ltd. is one of India’s leading garment manufacturer and exporter. The

organization has an infrastructure that is fully equipped to handle both knits and wovens. Exports

include shirts, t-shirts, blouses, jackets, children’s wear, sportswear, denims etc. Gokaldas

Exports has a wide range of products to offer to its buyers. Their factories are fully equipped

with all latest machineries and technologies as it has separate units dedicated to sampling,

washing, embroidery, printing, quilting and polyfill manufacturing i.e. they have everything in-

house required for garment manufacturing thus making specialization of its products possible

and thus catering to the diversified and increasing demands of its buyers. The company has a

very dedicated and concerned product development team which works continuously in

development of new fabrics, styles keeping in mind the requirement of the ever changing fashion

world.

Within their products, the company works with a number of fabrics and trims for a single style.

They handle styles that have intricate detailing such as use of different trims, fabrics in the same

garments. Sometimes a single style has number of colourways. A dedicated team of managers a

quality control department continuously monitors production to match every order to design

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specifications. The sourcing department is very hard-working and focused and they work with all

the major mills and suppliers within India as well as abroad. The marketing & merchandising

teams are very dedicated and hard-working & can be called as the pillars of the company as they

are the ones who co-ordinate with each and every department of the organization as well as are

representatives of their company in front of the buyers. Due to such dedicated employee’s &

management, Gokaldas exports today is one of the biggest name in the garment industry

worldwide.

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Functioning of an Export House- Gokaldas Exports

Documents

export order

export house3

indias premier export

process gokaldas exports

gokaldas exports factories

gandhinagargokaldas

head office gokaldas

department study