Production process & co-ordination

An Internship ReportOn

Production Process & Co-ordination of Ha-Meem Group:A Study on Next Collections Limited.

Date of Submission: 04th July, 2013

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An Internship ReportOn

Production Process & Co-ordination of Ha-Meem Group: A Study on Next Collections Limited.

Submitted to:

Department of Business Administration

Northern University Bangladesh

Prepared By

Jewel Rana

ID: BBA-080302850

BBA (Major in Accounting)

Department of Business Administration

Northern University Bangladesh

Date of Submission: 04th July, 2013

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Letter of Transmittal

04 July, 2013

Mr. Bulbul Ahmed

Senior Lecturer & Coordinator Placement Division

Faculty of Business

Northern University Bangladesh

Subject: Submission of Internship Report.

Dear Sir,

With due respect, I would like to inform you that it is a great pleasure for me to submit the

Internship report titled on “Production Process & Co-ordination of Ha-Meem Group: A

Study on Next Collections Limited.” as requirement for BBA program. This internship

report attempts to describe my observation and learning during the study. I have tried my best

to prepare this report as comprehensive and informative as possible within the time schedule.

Due to various limitations, there may be some mistakes for which I am responsible.

For any further explanations about the report, I will be gladly available to clarify all the

things.

Sincerely yours,

____________________Jewel Rana

ID No: BBA-080302850

BBA (Major in Accounting)

Department of Business Administration

Northern University Bangladesh

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Student Declaration

I do hereby declare that this report entitled on “Production Process & Co-ordination of

Ha-Meem Group: A Study on Next Collections Limited.” Submitted by me to Northern

University Bangladesh (Dhanmondi Campus) for the degree of Bachelor of Business

Administration (BBA) is an original work.

I also declare that it has not been submitted earlier either partly or wholly to any other

University or Institution for any Degree, Diploma, Associate-ship, Fellowship and other

similar title or prizes.

……………………

Jewel Rana

ID No: BBA-080302850

BBA (Major in Accounting)

Department of Business Administration

Northern University Bangladesh

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Certificate

This is to certify that the Internship report entitled on“Production Process & Co-ordination

of Ha-Meem Group: Next Collections Limited.” submitted in partial fulfillment of the

requirement for the degree of Bachelor of Business Administration (BBA), Northern

University Bangladesh.

I also certify that under my supervision and guidance this report has been prepared by Jewel

Rana ID No: BBA-080302850 Major in Accounting and it has not been submitted earlier

either partly or wholly to any other University or Institution for any Degree, Diploma,

Associate-ship, Fellowship and other similar title or prizes.

The report is approved and accepted in form and quality.

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…………………….Supervisor

Md. Abdullahel Kafi

Assistant Professor of Accounting

Department of Business Administration

Northern University Bangladesh

……………………………………Professor Saeed Alamgir JajarDean Faculty of BusinessNorthern University Bangladesh

Acknowledgement

First, I would like to express my gratitude to Almighty “ALLAH” for giving me the strength

to successfully attend the internship program at Next Collections Limited. of Ha-Meem

Group and complete the report within the schedule time.

After that I will be indebt forever to my internship supervisor Md. Abdullahel Kafi

Assistant Professor in Accounting, Department of Business Administration, Northern

University Bangladesh from the beginning of this Internship work he helped me in choosing

the topic of the report. She also shows me how I should proceed to attain the appropriate

knowledge involved in Internship. I also found him helpful in setting objectives of report,

getting the appropriate information to meet objectives, in reporting the information both in

writings& in graphs.

I shall remain ever grateful to Sree Romesh Vat Senior C.E.O, of Next Collections Limited.

for kindly accepting me for practical orientation program in his Organization. And Md.

Mamun senior Production Co-ordinator has played the most vital role to aid me with

practical environmentof the organization.

Last but not the least; I would like to thank my family. The constant inspiration and guidance

kept me focused and motivated. I am grateful to my father for giving me the life I ever

dreamed. I can’t express my gratitude for my mother in words, whose unconditional love has

been my greatest strength.

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Overview of the organization:

Ha-Meem Group of Bangladesh has an excellent track record in apparels manufacturing for

the last twenty years and are now ranked the 2nd largest in the country. The current turnover

of Ha-Meem is 400 million US Dollar. Company is ornamented with 26 garments factories

consisting with 250 lines,a unique Denim mill, Sweater factory, 5 washing plants,

Embroidery and Printing factory, Carton factory, Poly bag industry, Label factory, Jute mill,

Chemical formulation plant, Tea States, Transport company, News Channel and a widely

circulated national daily Newspaper with a vast number of manpower more than 40,000. Its

plans to install Spinning Mills at 2015.

Ha-Meem Group started operation is Bangladesh's first at 1993. The company was an effort

by MR. A. K. AZAD(founder chairman) and the Ha-Meem Group Managing Director.Next

Collections Ltd.of Ha-Meem Group first started its operation at January 01, 2002. It was

started as Sub Company of Ha-Meem Group. This company has around 4004 employee and

workers including upper label management personnel. Next Collections limited, Beron,

Ashulia, Dhaka is one of the profitable factory for Ha-Meem Group. Thiscompany provides a

great amount of profit every year. A huge number of productions are per day. There are

different types of quality-full products.The organization makes all type of Bottoms and Tops

Pant, Shirt, Ladies Dress, Overall, Short all, Romper, Sweater and more.

The organization is very specialized in Denim Garments. Nevertheless, this can also handle

any kind of Cotton, Twill, Canvas, Cordoury, Poplin and any stretch fabric. As a RMG they

export apparel to others country. It’s an export oriented organization.

These are working with buyers like American Eagle, GAP/Old Navy, T.C.P, JC Penney,

Kohl's, Squeeze, Sears, VF Asia, Target Store, Charming Shoppes, Wal-Mart in USA market

and H & M, Carrefour, Zara, Hema, M & S Mode, ETAM, Western Store, Migros, Celio and

PNC in the European market.

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This Company is going forward and taking every step with a specific Mission and vision.

Ha-Meem Group Mission is to create conditions and infrastructure for sustainable

procurement and production of textile products.

They wish to:

  Design, manufacture and sell high quality and affordable apparels and accessories.

  To use latest technologies in manufacturing process.

  To provide a safe working environment for the employees and workers.

  To operate the business with high motivation and deep commitment.

  Serving and supporting the society in which we work.

Ha-Meem Group vision is to become Bangladesh’s leading sustainable apparel company by

producing quality products and observing highest social, economic and environmental

standards. Its aim is to deliver the highest quality products and prompt services to its

customers.

Ha-Meem Group vision is three-fold:

  Lead the textile industry in Bangladesh.

  Observe highest social, economic and environmental standards.

  Maintain a committed and satisfied clientele.

Ha-Meem group believes in its uncompromising commitment& product quality to fulfill its

customer needs and satisfaction and to become their fond of in RMG sector. Taking cue from

its pool esteemed clientele, Ha-Meem group intends to pave the way for a new era in

garments sector that upholds and epitomizes in future.

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Tables of Content

Topic Page number

Letter of transmittal

Student Declaration

Bona fide Certificate

Internship Certificate

Acknowledgement

Overview of the organization

CHAPTER ONE

INTRODUCTIONExecutive Summary

1.1 Introduction

1.2 Scope of the study

1.3 Objective of the Report

1.4 Methodology

1.5 Limitation of the report

CHAPTER TWO

DATA COLLECTION, ANALYSIS & FINDINGS 2.1 Production process

2.2 Process of Garment Manufacturing

2.3 Reporting & Co-ordinating

2.4 Costing of Garments & Cost Sheet

2.5 Production Report and Analysis

2.6 Major Findings

2.7 SWOT Analysis of Ha-Meem Group

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CHAPTER THREE

CONCLUSIONS AND RECOMMENDATIONS

3.1 Conclusions

3.2 Recommendations

Reference

List of Tables

Table no. Subject Page No.

2.1 Daily Cutting Report

2.2 Daily Wash Report

2.3 Cost Sheet of a single product

2.4 Cost Sheet of an year

2.5 Three Months Production report

2.6 Yearly Production Report

List of Graphs/Figures

Graph/figure no. Subject Page no.

2.1 Unit Product Cost Analysis

2.2 Three Months production analysis

2.3 Yearly Production analysis

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Chapter ONE .…………………………………..

INTRODUCTION

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Executive Summary

This research report, a partial requirement of BBA program, is done on “Production Process

& Co-ordination of Ha-Meem Group: A Study on Next Collections Limited.” is

approved by my supervisor Md. Abdullahel Kafi. This report contains my practical

observations and experience from Production process and report maintenance of Next

Collections Ltd. I have obtained firsthand Knowledge about Garments sections and its

productions process section. All though the duration of the program was not long enough, I

tried to visit and observe the entire sector. The entire operation of the garments has been

progressing according to rules and regulations.

A garments sector occupies an important place in a nation’s economy by earning foreign

currency. This report aims toward providing an overview on the production process and their

overall report what they maintain to go forward by legal action and need to keep their

information strong. This report is prepared within the broader framework of internship

program of Department of Business Administration, Northern University Bangladesh. While

preparing this report it has been tried to reveal the insights of the production process and

report system of Ha-Meem Grope at Next Collections Ltd. The main objective of the report is

to get practical experience about official activities and observe the production process and

co-ordination of NCL. Specific objective of this report is to know the how to produce a

product, how they make their report, how they co-ordinate their all production process and

report. For preparing this report primary and secondary data have been used. Data have been

collected from two sources. In primary source data have been collected by face to face

conversation with officials and others. Secondary source of data collection include Annual

report of NCL. At the time of preparing the report there were some findings and these are

based on my practical experience. Its plan and reform the service improvement strategy to

retain the higher performance level, customer satisfaction and to compete with challenges.

Mainly for keeping the foreign buyers those buyers deal with them and import the product

into their country from NCL.

1.1 Introduction

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Bangladesh, a country of multidimensional potentiality, has been recognized as global

performer in garments arena. Almost 5000 factories with 3 million work forces, putting their

hands significantly to different supply chain of global brands. Thus garments export swelled

to 12 Billion US Dollar. Ha‐Meem Group, a top ranking apparel manufacturer in Bangladesh

exporting to USA and Europe for a long time. Company produces 4 million pieces of woven

garments per month with the assortment of infant to adult in men and women.

In today’s business world, some garments have made a strong place in the market and

“Ha-Meem Group” is one of those names. It is an unconventional and production institution

that performs most of the standard services and production activities.

1.2 Scope of the study

This is a large scope for doing the internship in this kind of organization. Internship provides

practical knowledge to the students about their practical field. BBA graduate students can

share their managerial knowledge with the organization. The students have a large

opportunity to acquire knowledge about the organization, organizational environment,

participation with others and etc. The students can familiar with organizational culture. I

have started my internship program here at Next Collections Ltd. of Ha-Meem Group, Beron,

Ashulia, Dhaka. My work started on 08th January 2013 in production coordination section.

After joining I followed what they do, how maintain the office, discipline, how handle the

customer, behavior’s with employee etc. Then I worked in department by myself. I tried to

know how a production process is being completed at Next Collections Ltd. Beron, Ashulia,

Dhaka. After studying this report you will be able to know about the “Production Process &

Co-ordination of Ha-Meem Group: A study on Next Collections Limited.”

1.3 Objective of the Report

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The objective of this report is to focus on production process activities and all production

coordination in report at garments sector with corporate working environment and also

gathering knowledge from the expert who are leading and making it possible to enhance the

growth of a country rich by earning more foreign currency. The objective of this report can

be summarized as follows:

General objective

Specific objective

General Objective:

The general objectives of the study are to prepare and submit a report on the topic of

Production Process & Co-ordination of Ha-Meem Group: A study on Next Collections

Limited.

Specific Objective:

To know Production Process & Co-ordination of all production in report of Ha-Meem

Group: A study on Next Collections Limited.

To understand the garments factory environment of Bangladesh.

To submit the practical work as a paper work that I have in my three months

internship of BBA program.

To know how a garments do their overall task by a process activities.

1.4 Methodology

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For preparing this report primary and secondary data have been used. Data have been

collected from annual report, official website, business record and daily monthly records.

Table, chart and graphical methods are used to prepare the report. Statistical approach and

MS excel are used to analyze and present the data.

1.5 Limitation of the report

While conducting this study, I have faced certain limitation. They are as follows:

o Sufficient record, publications were not available as per my requirement.

o Non- availability of the most required data.

o For the restriction to disclose various information of a garments. So for this it

was a great difficulty in preparing the report.

o Large – scale research was not possible due to time constraints.

o Non availability of data in a systematic way.

o Data finding was a troublesome work because of Shortage of time.

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Chapter TWO…………………………………………

DATA COLLECTION, ANALYSIS &FINDINGS

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As apparel industry Ha-Meem Group has a great reputation for Quality and on time delivery

is the corner stone of its success. Customer’s satisfaction is the key to the organization

establishment. The organization ensures timely shipment and delivery to gain faith and

confidence to the organization valued customer. The organization can retain the quality and

the position in a pick point in apparel section for a long time due to excellent in house facility

of high standard Washing Plant, Sand Blasting and Grinding. During the recent time, the

RMG sector appears as a multi-billion dollar manufacturing industry in the economy. Ha-

Meem Group participate a great step in this sector to strong our economy.

I have completed my internee with the position of production coordinator. I have appeared a

vast arena of RMG sector with a bright future of Bangladesh for exporting readymade

garments. As an internee I worked at Ha-Meem Group: Next Collections Ltd. During my

internship I have worked in two areas. I show my working area in chart.

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Department

Production process

Report Making

2.1 Production process Sector

Duties in Production Department:

At first I assigned to work in production coordination section. In here I have learned how a

garments being prepared from the initial stages, what they do in every process, I have learnt

every process work and I have tried to help them practically.

There have some process in production section that’s maintained in a chain of command

those are:

I have appeared all of the above process and tried to capture what to do in every process and

report to management is it being in proper way or not.

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1. Design / Sketch

2. Pattern Design

3. Sample Making

4. Production Pattern

5. Production Pattern

6. Grading

7. Marker Making

8. Spreading

9. Cutting

10. Sorting/Bundling

11. Sewing/Assembling

12. Inspection

13. Pressing/ Finishing

14. Final Inspection

15. Packing

2.2 The Step-by-step Process of Garment Manufacturing

Garment manufacturers are primarily engaged in the design, cutting and sewing of garments

from fabric. Some manufacturers are contractors or subcontractors, which generally

manufacture apparel from materials owned by other firms. Larger manufacturers often

contract production to many such contractors or subcontractors in the U.S. and abroad. Some

manufacturers are vertically integrated, producing the textiles from which they make

garments, or even operating retail outlets too. In a garments there have a chain of command

process of producing a garment. The process is given sequentially bellow:

Organizational Areas in Garment Manufacturing:

On industrial basis there are certain areas or sequence through which garments are

manufactured.

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2.2.1 Design / Sketch:

In the garment manufacturing the first step is designing the sketch for the dresses that have to

be prepared. For this purpose the designer first draw several rough sketches in the sketch

book.

The designer does not go for details at this moment but he rather let his creativity flow on the

paper and he draws many sketches. Later these sketches are analyzed by a panel of designers.

They finally select few out of them. These few sketches are rendered in detail separately or in

the form of a single collection. The designer also draws working drawings along with the

sketch. Working drawings are flat drawing of the sketch and it help pattern maker in

understanding the patterns involved in the construction.

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2.2.2 Pattern Design:

The pattern maker now develop first pattern for the designs in any one standard size.

This is made by pattern drafting method and the purpose of making this pattern is to create

the sample garment for test fit.

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2.2.3 Sample Making:

The first patterns are sent to the sewing unit for assembling them into garment.

This is usually stitched on calico or muslin which is an inferior quality of fabric and it

reduces cost. This sample is constructed to analyze the pattern fit and design too. After the

sample garment is stitched it is reviewed by a panel of designers, pattern makers and sewing

specialists. If any changes have to be made they are made at this time.

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2.2.4 Production Pattern:

The pattern design is now taken for creating the production patterns. The production pattern

is one which will be used for huge production of garments.

The pattern maker makes the patterns on standard pattern making paper. These papers are

made-up of various grades. Garment patterns can be constructed by two means: manual

method, CAD/CAM method. Today many companies have developed CAD. A garment

sewing pattern or garment fabric & patterns draft is developed by calculating, taking account

of the following measurements: -

1. Direct Sample.

2. Specification Sheet/ Measurement Chart.

3. Actual body size measurements.

4. Ease Allowances.

5. Sewing Allowance.

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These allowances are different for different type of fabrics and patterns.

2.2.5 Grading& Measurement

The purpose of grading is to create patterns in different standard sizes in proper

measurement.

Grading a pattern is really scaling a pattern up or down in order to adjust it for multiple sizes.

Pattern sizes can be large, medium and small or else there are standard patterns of size 10,

12, 14, 16 and so on for different figure and statures sizes. This is generally how we get S M

L XL XXL sizing.

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2.2.6 Pattern grading:

Pattern grading by manual method is a cumbersome task because the grader has to alter the

pattern on each and every point from waist belt to crotch, Raise seam, Back Raise, Inseam

etc. by using CAD it is much easier and faster.

2.2.7 Marker Making:

The measuring department determines the fabric yardage needed for each style and size of

garment. Computer software helps the technicians create the optimum fabric layout to

suggest so fabric can be used efficiently. Markers, made in accordance to the patterns are

attached to the fabric with the help of adhesive stripping or staples. Markers are laid in such a

way so that minimum possible fabric gets wasted during cutting operation. After marking the

garment manufacturer will get the idea of how much fabric he has to order in advance for the

construction of garments. Therefore careful execution is important in this step.

Computer marking is done on specialized software. In computerized marking there is no need

of large paper sheets for calculating the yardage, in fact, mathematical calculations are made

instead to know how much fabric is required.

2.2.8 Spreading:

With the help of spreading machines, fabric is stacked on one another in reaches or lays that

may go over 100 feet (30.5 m) long and hundreds of plies (fabric pieces) thick.

2.2.9 Cutting:

The fabric is then cut with the help of cloth cutting machines suitable for the type of the

cloth. These can be band cutters having similar work method like that of band saws; cutters

having rotary blades; machines having reciprocal blades which saw up and down; die

clickers similar to die or punch press; or computerized machines that use either blades or

laser beams to cut the fabric in desired shapes. There have to maintain quality during cutting.

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Cutting quality control: In cutting section quality is insuring in two stages.

a) Spreading quality control: Following the point are checked during spreading

I. Table marking.

II. Ends

III. Tension

IV. Leaning

V. Narrow Goods

VI. Counts

VI. Ply height

VII. Remnants

VIII. Fabric flaws

IX. Market placing

b) After cutting quality control: After each cutting blocks and bundles are checks on the

following Points.

I. Miss cut

II. Ragged cutting

III. Pattern checks

IV. Matching Plies

V. Notches

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2.2.10 Sorting/Bundling:

The sorter sorts the patterns according to size and design and makes bundles of them. This

step requires much precision because making bundles of mismatched patterns can create

severe problems. On each bundle there are specifications of the style size and the marker too

is attached with it.

2.2.11 Sewing/Assembling:

The sorted bundles of fabrics are now ready to be stitched. Large garment manufacturers

have their own sewing units other use to give the fabrics on contract to other contractors.

Stitching in-house is preferable because one can maintain quality control during the

processing. On the other hand if contractors are hired keeping eye on quality is difficult

unless the contactor is one who precisely controls the process.

There are what is called sewing stations for sewing different parts of the cut pieces. In this

workplace, there are many operators who perform a single operation. One operator may

make only straight seams, while another may make sleeve insets. Yet another two operators

can sew the waist seams, and make buttonholes. Various industrial sewing machines too have

different types of stitches that they can make. These machines also have different

configuration of the frame. Some machines work sequentially and feed their finished step

directly into the next machine, while the gang machines have multiple machines performing

the same operation supervised by a single operator. All these factors decide what parts of a

garment can be sewn at that station. Finally, the sewn parts of the garment, such as sleeves or

pant legs, are assembled together to give the final form to the clothing.

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2.2.12 Inspection:

Open seams, wrong stitching techniques, non- matching threads, and missing stitches,

improper creasing of the garment, erroneous thread tension and raw edges are some of the

sewing defects which can affect the garment quality adversely. During processing the quality

control section needs to check each prepared article against these defects.

2.2.13 Pressing/ Finishing:

The next operations are those of finishing and/or decorating. Molding may be done to change

the finished surface of the garment by applying pressure, heat, moisture, or certain other

combination. Pressing, pleating and creasing are the basic molding processes. Creasing is

mostly done before other finishing processes like that of stitching a cuff. Creasing is also

done before decorating the garment with something like a pocket, appliqués, embroidered

emblems etc.

Vertical and form presses is automated machines. Perform simple pressing operations, such

as touching up wrinkles in knit shirts, around embroidery and snaps, and at difficult-to-reach

places on garments.

2.2.14 Final Inspection:

For the textile and apparel industry, product quality is calculated in terms of quality and

standard of fibers, yarns, fabric construction, color fastness, designs and the final finished

garments. Quality control in terms of garment manufacturing, pre-sales and posts sales

service, delivery, pricing, etc are essential for any garment manufacturer, trader or exporter.

Certain quality related problems, often seen in garment manufacturing like sewing, color,

sizing, or garment defects should never be over looked.

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Reject Issue:

After being done above process there has large number of product (garments) are rejected

cause of bellow defect found in garments body.

Sewing defects

Open seams, wrong stitching techniques, non- matching threads, missing stitches, improper

creasing of the garment, erroneous thread tension and raw edges are some of the sewing

defects which can affect the garment quality adversely.

Color defects:

Variation of color between the sample and the final garment, wrong color combinations and

mismatching dyes should always be avoided.

Sizing defects:

Wrong gradation of sizes, difference in measurement of various parts of a garment like

sleeves of XL size for body of L size garment can deteriorate the garments beyond repair.

Garment defects:

Broken or defective buttons, snaps, stitches, different shades within the same garment,

dropped stitches, exposed notches and raw edges, fabric defects, holes, faulty zippers, loose

or hanging sewing threads, misaligned buttons and holes, missing buttons, needle cuts or

chews, pulled or loose yarn, stains, unfinished buttonhole, short zippers, inappropriate

trimmings etc. all can lead to the end of a brand name even before its establishment.

Packing:

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The finished garments are finally sorted on the basis of design and size and packed to send

for distribution to the retail outlets.

2.3 Reporting& Co-ordinating Sector:

In this sector all the production related report have to coordinate with some formatted

Report. Mentioned below with reporting.

2.3.1 Cutting Report:

In a production department of garments the initial stage is cutting the fabric for prepare a

garments so first of all have to prepare the cutting report. A daily cutting report as follows.

Cutting Report of Next Collections Ltd. Date: 30.03.13

LineBuye

r Style Color O/qtyCutting Input Input

Balance day Total day Total

172 GAP 198 BLACK     10622 1680 9222 1400172 GAP 198 STAINLESS   1400 13682 603 7182 6500

173 GAP 646484

BLACK       1335 54080  

174 GAP 198 WINE   605 10664 700 6121 1910

175 GAP 642856

YELLOW 35000 600 900 600 900 0

175 GAP 646484

BLACK         2672  

176 GAP 329/S TIGRIS 3180 2125 21630   15255 6375176 GAP 329/H TIGRIS 753   2500   1990 510176 GAP 329/R TIGRIS 5412   40035 1750 37308 2727

177 GAP 646484

BLACK 116900

3430 110501

628 48654 5095

178 GAP 980 PINK   1800 2400 900 1500 900179 GAP 981 RED   2160 11638 2160 9478 2160

181 GAP 634957

BRIGHT 43872   44362   21957 11255

181 GAP 634957

FUCHSIA 29132 588 30079 949 26677 3402

182 GAP 634957

BRIGHT       1500 11150  

183 GAP 198 BLACK   1450 11224 1400 8374 2850

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183 GAP 198 WINE 12630       2633  

184 TCP 650782

BLACK   1300 6167   4867 1300

184 TCP 650782

BLACK   10 3011 833 3011 0

Total: 15468 31941

515038 27303

146384

Table 2.1: Daily Cutting Report of Next Collections Ltd. of Ha-Meem Group.

In the above table represent the cutting information of Next Collections Ltd. Ha-Meem

Group. In this table line means the line number of the factory, buyer means who has given

the order to this factory. Style means the code number of specific products. Color represent

the fabric color and there have the information about how many pieces have been cutting in a

day and also have the order quantity, balance amount of cutting products.

2.3.2 Wash Report:

In a production department of garments the initial stage is cutting the fabric for prepare a

garments then after sewing the garments send to wash for washing color changing shading

etc. A daily wash report as follows.

Wash Report of Next Collections Ltd. Date: 30.03.13

BUYER STYLE COLORDAILY SEND WASH

TOTAL SEND WASH

DAILY RCV

WASH

TOTAL REV

WASH

WASH BALANCE

WASH FACTORY

GAP 556325 MID.W 2032 377796 3140 360792 17004 EXPRESS

GAP 634957 FUCHSIN 1931 23388 1320 21356 2032 EXPRESS

GAP 634957 BRIGHT 2072 27915 1120 25693 2222 EXPRESS

GAP 636198 BLACK 1344 5994 320 3673 2321 EXPRESS

GAP 634981 GREY 1135 7057 26 559 6498 EXPRESS

GAP 642856 DK WASH 551 581   12 569 EXPRESS

GAP 545329 MID.W  1640 50702 2457 45934 4768 CREATIVE

GAP 646484 BLACK 3665 101033 3555 91396 9637 CREATIVE

GAP 633926 DK DENIM   25718 40 25108 610 CREATIVE

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GAP 634972 MED.W   20025 3573 12636 7389 CREATIVE

GAP 634968 DK WASH   20115 2630 15019 5096 CREATIVE

GAP 634969 LIGHT.W   16760 1160 8534 8226 CREATIVE

GAP 634960 DARK    28639 2320 21023 7616 CREATIVE

TOTAL: 14370 705723 21661 631735 73988

Table 2.2: Daily Wash Report of Next Collections Ltd. of Ha-Meem Group.

In the above table represent the wash information of unit – 1 NCL Ha-Meem Group.

In this table line means the line number of the factory, buyer means who has given the order

to this factory. Style means the code number of specific products. Color represent the fabric

color and there have the information about how many pieces have been send to wash in a day

and also have the balance amount in wash section in a wash factory. Express, Creative-1,

Creative-2 are the wash factory name.

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2.4 Costing of Garments & Cost Sheet:

Cost Sheet of a Single ProductProduct type: Long Pant

Materials

Item # Fabric Qty. Cost/Yds. Total Cost Item Code Fabric # 1 .5 $ 6 $ 3Item Code Fabric # 2 .1 $ 8 $ .80Item Code Fabric # 3 1 $ 4 $ 4Item # Nations Qty. Cost/Pcs. Total CostItem Code Zipper 1 $ 1.5 $ 1.5Item Code Buttons 5 $ .20 $ 1Item Code Trim .6 $ 1.20 $ .72Item Code Thread .33 $ 4 $ 1.32Item Code Label/Tag 1 $ .30 $ .30

Total Material Cost: $ 12.64

Detailed Operations

Machine Operation Thread Color Total MinSerge Serge Center back edges Black 1Single Needle Sew Front to Back Black .5Single Needle Sew Zipper to back Black 2Single Needle Finish Zipper to seam Black 4

Press Zipper & Side Seam 6Blind Hem Hem bottom Black .2Cover Stitch Hem top edge Black 1.5Single Needle Attaches Strap Black 1Single Needle Sew Button Hole Black .75Hand Sew button Black 2

Press Garments .5

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Trim Inspect 1Ship 1.5

Total Minutes 21.95Cost per min $ .1

Total Sew cost $ 2.20Cut cost $ 1.5

Total Labor $ 3.70Total Cost of Garments $ 16.34

In Tk. 1300 $

Table 2.3: Cost Sheet of a single product

In the above specific product cost sheet Material section refers to the direct material cost or

row material cost of a pant and Operation section refers to the Labor cost and maintenance

cost. Basically this cost sheet is being done by the merchandiser of this company.

Unit Product Cost Analysis:

77%

23%

Unit Product Cost Analysis

Material Cost Labor Cost

Figure 2.1: Unit Product Cost Analysis of Next Collections of year 2012

The above pie chart shows percentage of expenses. In which sector need how much money to

prepare a finished product.

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Cost Sheet of Next Collections Ltd. for the Year Ending 31.12.2012:

Cost Sheet for the Year Ending 31.12.2012

Particulars Amount Amount

Opening Stock of Raw Materials

Add: Direct materials

Less: Closing stock of raw materials

(Value of raw materials Consumed)

Add: Direct labor

Prime Cost

Add: Manufacturing overhead:

Indirect material

Indirect Labor

Other factory overheads

Add: Opening work in process

Less: Closing work in process

(Cost or goods manufactured )

Add: Opening Stock of finished goods

$47,50,00,000

$20,15,50,000

$50,09,75,000

$36,55,07,500

$67,65,550000

$27,55,75,000

$1,57,00,500

$15,48,43,200

$3,12,45,700

$76,64,82,500

$18,96,33,100

$20,17,89,400

$7,50,74,300

$27,68,63,700

$8,72,30,600

$95,61,15,600

$7,80,00,000

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60000 units @ 1300.

Less: Closing stock of finished goods

125000 unit @ 1300

(Cost of goods sold)

Profit

Seles

$103,41,15,600

$16,25,00,000

$87,16,15,600

$9,75,53,500

$96,91,69,100

Table 2.4: Cost Sheet of a year

2.5 Production Report and Analysis:

Last 3 months production analysis of Next Collections Ltd. of Ha-Meem Group.

Source: Next Collections Ltd. Beron, Ashulia, Dhaka.

Production (Piece)

Fabruary-2013 March-2013 April-2013

571014 803281 602371

Table 2.5: Three Months Production report of Next Collections Ltd. during my

internee.

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Fabruary-2013 Mar-13 Apr-130

100000200000300000400000500000600000700000800000900000

571014

803281

602371

Last three month production analysis

Month

Qua

ntity

in p

cs

Figure 2.2: Three Months production analysis of Next Collections Ltd. of Ha-Meem

Group.

This graph represents the Last 3 months production analysis of Next Collections Ltd. We see

that production increase in 1st month but another month is being decrease.

Yearly production Analysis:

37

JANUARY

FEBRUARY

MARCHAPRIL MA

YJUNE JU

LY

AUGUST

SEPTEMBER

OCTOBER

NOVEMB

ER

DECEMB

ER - 

 100,000 

 200,000 

 300,000 

 400,000 

 500,000 

 600,000 

Yearly Production Analysis

Unit - 1Unit - 2Total

Month of 2012

Prod

uctio

n Q

uanti

ty

Figure 2.3: Yearly Production analysis of Next Collections of year 2012

The figure represents the production growth from the starting point to end of the year.

In this figure the company performance is gradually high from January to December.

Yearly Production Report:

Production Report of Next Collection Ltd. 2012-2013

38

MonthProduction Report

RemarksUnit-1 Unit-2 NCL Total

January 18,380 18,380

February 63,940 63,940

March 79,413 79,413

April 149,308 149,308

May 151,160 151,160

June 97,165 97,165

July 198,664 198,664

August 100,648 100,648

September 238,895 238,895

October 274,591 274,591

November 288,690 19,075 307,765

December 346,909 215,338 562,747

Total= 2,007,754 234,913 2,242,667

Table 2.6: Yearly Production Report Unit- 1&2 of Next Collections Ltd. of Ha-Meem

Group.

2.6 Major Findings

In Bangladesh most of the garment factories use different tools for quality

management but not in organized way. When needs they use these tools haphazardly?

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In Bangladesh most of the garments factories use 4-point system for inspecting fabrics of

garments.

Most of the buyers are importing garments from Bangladesh with AQL (acceptable

quality level) 2.5.

Most of the garments manufacturers are doing inspection during the manufacturing

process of garments.

Other tests such as shrinkage tests, color fastness tests, azo free tests are done according

to the buyers’ requirement.

2.7SWOT Analysis of Ha-Meem Group: Next Collections Ltd.

2.7.1 Strengths:

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Stander machinery is used for better quality and all of those machineries being imported

from the foreign country. That does ensure the performance.

Well decorated and open space facilities that keep a worker easy to do his/her job with

comfortably.

All Floor have available adjust fan that keeps the environment cool in hot day and all

time electricity supply.

A large number of Machinery those keep the organization fit and huge number of

experienced workers to make quality products.

Well environment inside the factory that workers friendly.

2.7.2 Weaknesses:

It’s fully depending on electricity without electricity the organizations have to set idle

with a vast number of employ & workers.

Depend on buyer acceptance of products if any simple defects are found in a body then

all the body will be rejected.

Limited internet technology is used for which the organization is unknown to many

countries.

2.7.3 Opportunities:

To go first position in Bangladesh at RMG sector as still they are in a second position.

Regulatory environment favoring RMG in Bangladesh and it has a better future.

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Online deal with foreign buyers that can maintain the deal by having native country and

reduce the time wastage.

Chance to use more update machineries for getting the better quality & save time.

There may have huge profit from this sector as they are an export oriented organization &

to western.

2.7.4 Threats:

Workers have the tendency to Agitation in any time for increasing salary and stop there

work by demanding their more facility.

Number of potential competitors in those areas increasing day by day it’s a great risk for

the organization.

I observed that most of them employee are not cooperative. Everyone wants to take

demand from others.

It has no surety to get order from buyer it’s a risk for the organization.

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Chapter THREE……………………………………........

CONCLUSIONS AND RECOMMENDATIONS

3.1 Conclusion:

In conclusion, Ha-Meem Group: Next Collections Ltd. is one of the most potential garments

in the RMG sector. The Ready-Made Garments (RMG) industry occupies a unique position

43

in the Bangladesh economy. It is the largest exporting industry in Bangladesh, which

experienced phenomenal growth during the last 25 years. By taking advantage of an insulated

market under the provision of Multi Fiber Agreement (MFA), it attained a high profile in

terms of foreign exchange earnings, exports, industrialization and contribution to GDP within

a short span of time. The industry plays a key role in employment generation and in the

provision of income to the poor. The government and the RMG sector would have to jointly

work together to maintain competitiveness in the global RMG market. Bangladesh can look

forward to advancing its vastnesses the global RMG market. It has a large portfolio with

huge assets to meet up its any types of risk and management of these garments is equipped

with the expert employers and managers in all level of management with a vast number of

workers. So it is not an easy job to find out the drawbacks of Ha-Meem Group: Next

Collections Ltd. We would rather feel like producing our own option about the ongoing

practices in Next Collections Ltd. The garments have achieved sustainable growth in export

in 2012 and the performance of the garments was satisfactory. Major items of exports were

garments, jute products, textile, and lather etc. items of import included mainly industrial raw

materials, garments accessories, capital machinery and other essential commodities.

3.2 Recommendation

I had the practical exposure in Ha-Meem Group: Next Collections Ltd. For just three months,

with my little experience in this organizations is comparison with vast and complex system,

44

it is very difficult for me to recommend. I had observed some shortcomings regarding

operational and other aspects of their production system. On the basis of observation I would

like to recommend the following recommendations-.

I recommend that the factory should improve its web page as they are an exporting

company. There have a very few information in their web page and those

information is very poor.

Again Next Collections of Ha-Meem Group is situated in countryside it should come

forward as if foreign buyer can deal easily with them.

Ha-Meem Group should enrich by new technology to make a good competition

among the RMG factory.’

As the numbers of potential competitor are increasing day by day so it should take a

strong step to keep retain in the competition market.

Ha-Meem Group: Next Collections Ltd. should try to arrange more training programs for

their official’s quality training will help the officials to enrich them with more recent

knowledge of International Trade Financing

Reference:

Ha-Meem Group., (2011), “Annual report 2012”, Ha-Meem Group, Beron, Ashulia, Shaver,

Dhaka.

45

Jawahar Lal., “Cost Accounting”, Third Edition, Professor of Delhi School of Economics,

University of Delhi.

Next Collections Ltd., “NCL Profile & Report file”, viewed on 01 April, 2012, Next

Collections Ltd.

Next Collections Ltd., “Special Features of the Garments Factory”, viewed on 01 April,

2012. http://www.hameemgroup.net/about.features

Weygandt (University of Wisconsin), Kieso (Northern Illinois University), Kimmel

(University of Wisconsin).,“Accounting Principles”.

Wikipedia, “Garments history”, viewed on 05, January 2013, <http://www.enwikipedia.

org/wiki/rmg.histry.html>

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