An internship report on production process co ordination of ha meem group a study on next collections limited

An Internship Report On Production Process & Co-ordination of Ha-Meem Group:A Study on Next Collections Limited Date of Submission: 04th July, 2013 An Internship Report On 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 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 Student Declaration I 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 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 …………………… …………………………………… Supervisor Professor Saeed Alamgir Jajar Dean Faculty of Business Northern University Bangladesh Md Abdullahel Kafi Assistant Professor of Accounting Department of Business Administration 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 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, 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 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 Tables of Content Topic Page number Letter of transmittal Student Declaration Bona fide Certificate Internship Certificate Acknowledgement Overview of the organization CHAPTER ONE INTRODUCTION Executive 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 2.2 2.3 2.4 2.5 Production process Process of Garment Manufacturing Reporting & Co-ordinating Costing of Garments & Cost Sheet Production Report and Analysis 2.6 2.7 Major Findings SWOT Analysis of Ha-Meem Group CHAPTER THREE CONCLUSIONS AND RECOMMENDATIONS 3.1 3.2 Reference Conclusions Recommendations List of Tables Table no 2.1 2.2 2.3 2.4 2.5 2.6 Subject Daily Cutting Report Daily Wash Report Cost Sheet of a single product Cost Sheet of an year Three Months Production report Yearly Production Report Page No List of Graphs/Figures Graph/figure no 2.1 2.2 2.3 Subject Unit Product Cost Analysis Three Months production analysis Yearly Production analysis Page no 10 Packing: 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 Line Buye r Style Color 172 172 173 174 175 175 176 176 176 177 178 179 181 181 182 183 183 184 184 GAP GAP GAP GAP GAP GAP GAP GAP GAP GAP GAP GAP GAP GAP GAP GAP GAP TCP TCP 198 198 646484 198 642856 646484 329/S 329/H 329/R 646484 980 981 634957 634957 634957 198 198 650782 650782 BLACK STAINLESS BLACK WINE YELLOW BLACK TIGRIS TIGRIS TIGRIS BLACK PINK RED BRIGHT FUCHSIA BRIGHT BLACK WINE BLACK BLACK O/qty 35000 3180 753 5412 116900 43872 29132 Cutting day Total 1400 10622 13682 605 600 10664 900 2125 588 21630 2500 40035 110501 2400 11638 44362 30079 1450 11224 1300 10 6167 3011 3430 1800 2160 12630 Date: 30.03.13 Input Input Balanc day Total e 1680 9222 1400 603 7182 6500 1335 54080 700 6121 1910 600 900 2672 15255 6375 1990 510 1750 37308 2727 628 48654 5095 900 1500 900 2160 9478 2160 21957 11255 949 26677 3402 1500 11150 1400 8374 2850 2633 4867 1300 833 3011 31 15468 Total: 319415 15038 273031 46384 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 BUYER STYLE COLOR GAP 556325 MID.W DAILY SEND WASH 2032 GAP 634957 FUCHSIN 1931 23388 1320 GAP 634957 BRIGHT 2072 27915 GAP 636198 BLACK 1344 GAP 634981 GREY GAP 642856 GAP Date: 30.03.13 TOTAL SEND WASH 377796 DAILY RCV WASH 3140 TOTAL REV WASH 360792 WASH BALANCE WASH FACTORY 17004 EXPRESS 21356 2032 EXPRESS 1120 25693 2222 EXPRESS 5994 320 3673 2321 EXPRESS 1135 7057 26 559 6498 EXPRESS DK WASH 551 581 12 569 EXPRESS 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 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 32 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 – 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 33 2.4 Costing of Garments & Cost Sheet: Cost Sheet of a Single Product Product type: Long Pant Materials Item # Item Code Item Code Item Code Item # Item Code Item Code Item Code Item Code Item Code Fabric Fabric # Fabric # Fabric # Nations Zipper Buttons Trim Thread Label/Tag Qty .5 1 Qty 33 Cost/Yds $6 $8 $4 Cost/Pcs $ 1.5 $ 20 $ 1.20 $4 $ 30 Total Material Cost: Total Cost $3 $ 80 $4 Total Cost $ 1.5 $1 $ 72 $ 1.32 $ 30 $ 12.64 Detailed Operations Machine Serge Single Needle Single Needle Single Needle Blind Hem Cover Stitch Single Needle Single Needle Hand Operation Serge Center back edges Sew Front to Back Sew Zipper to back Finish Zipper to seam Press Zipper & Side Seam Hem bottom Hem top edge Attaches Strap Sew Button Hole Sew button Press Garments Trim Inspect Ship Thread Color Black Black Black Black Black Black Black Black Black Total Minutes Total Min 1.5 75 1.5 21.95 34 Cost per Total Sew cost Cut cost Total Labor Total Cost of Garments In Tk $ $ 2.20 $ 1.5 $ 3.70 $ 16.34 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: 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 Cost Sheet of Next Collections Ltd for the Year Ending 31.12.2012: 35 Cost Sheet for the Year Ending 31.12.2012 Particulars Opening Stock of Raw Materials Add: Direct materials Amount $47,50,00,000 $20,15,50,000 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 $67,65,550000 $27,55,75,000 Add: Opening work in process Less: Closing work in process (Cost or goods manufactured ) Opening Stock of finished goods 60000 units @ 1300 $20,17,89,400 $7,50,74,300 $27,68,63,700 $8,72,30,600 Add: Less: Amount $50,09,75,000 $36,55,07,500 $76,64,82,500 $1,57,00,500 $15,48,43,200 $3,12,45,700 Closing stock of finished goods 125000 unit @ 1300 (Cost of goods sold) $18,96,33,100 $95,61,15,600 $7,80,00,000 $103,41,15,600 $16,25,00,000 Profit Seles $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 months production analysis of Next Collections Ltd of Ha-Meem Group Source: Next Collections Ltd Beron, Ashulia, Dhaka Fabruary-2013 March-2013 April-2013 36 Production (Piece) 571014 803281 602371 Table 2.5: Three Months Production report of Next Collections Ltd during my internee Figure 2.2: Three Months production analysis of Next Collections Ltd of Ha-Meem Group This graph represents the Last months production analysis of Next Collections Ltd We see 10 that production increase in 1st month but another month is being decrease 11 12 Yearly production Analysis: 13 14 15 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 37 Yearly Production Report: Month Production Report of Next Collection Ltd 2012-2013 Production Report Remarks Unit-1 Unit-2 NCL Total January February March April May June July August September October November December Total= 18,380 63,940 79,413 149,308 151,160 97,165 198,664 100,648 238,895 274,591 288,690 346,909 2,007,754 19,075 215,338 234,913 18,380 63,940 79,413 149,308 151,160 97,165 198,664 100,648 238,895 274,591 307,765 562,747 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? 38 • 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:  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 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 39  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  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 40 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 Chapter THREE …………………………………… 41 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 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 42 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, 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 43  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 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 44 Weygandt (University of Wisconsin), Kieso (Northern Illinois University), Kimmel (University of Wisconsin).,“Accounting Principles” Wikipedia, “Garments history”, viewed on 05, January 2013, 45 [...]... 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 08 th January 2013 in production coordination...Chapter ONE ………………………………… INTRODUCTION 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 11 observations and experience from Production process and report maintenance of Next Collections. .. 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,... 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... 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. .. 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... 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... 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 HaMeem 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... 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 For preparing this report primary and secondary data have been used Data have been collected from annual report, official... 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 14 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 ... 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. .. 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. . .An Internship Report On Production Process & Co-ordination of Ha-Meem Group: A Study on Next Collections Limited Submitted to: Department of Business Administration Northern University Bangladesh