Group Project

Course: MGT314
Section: 7
Semester: Spring 2017

Production and Operation Management

Of
Giant Textiles Ltd.

Submitted to:
Shaila Jahan Mona (JMS)
Lecturer,
Department of Management

Submitted by:

Name ID
Anik Mondal 1310182630
MD.Sazzad Ahmed Chowdhury 1310312630
Shameem Al Redwan 1130754030
Maliha Tanmi Khan 1321746030
Nabila Farzin 1510537030

Submission On 16.4.2017

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Letter of Transmittal

16 April 2017
Shaila Jahan Mona (JMS)
School Of Business and Economics
Department of Management

North South University

Subject: Submission of the report on Production and Operation Management

of Giant Textiles Ltd.

Ma'am

We submit here the report of our group. We are submitting this report to you on 16th April
2017 tilted “Production and operation Management of Giant Textiles Ltd". We have tried our
best to follow your in every aspect on our report. We have collected what seems to be most
important information to make our report as specific and coherent as possible. We tried our
utmost to make it look like a professional one. Any shortcomings are expected to have a kind
view for our encouragement.

We are thankful to you for your guidance, suggestions, and constructive criticisms during the
preparation of this report that only impelled us further into excelling. We truly hope that you
will be satisfied to see our report.

Yours truly,

Anik Mondal 1310182630

MD.Sazzad Ahmed Chowdhury 1310312630

Shameem Al Redwan 1130754030

Maliha Tanmi Khan 1321746030

Nabila Farzin 1510537030

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 Table of Content

Content Page No.

Executive Summery 4

Company Background 5

Production Strategy 6-7

Facility Layout 7-8

Application of Production 9-10

Operations management concepts 11

Process Map 12-14

Quality Control Issues 15

Demand Forecasting 16

Operational Problems 17

Recommendations 18

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Executive Summary

This project is based on the Production and the Operation Management of a production
manufactured company. The company we choose is Giant Textiles, an uprising company in
ready-made garments Industry of Bangladesh. This report consists of overall production issues of
the company which are related to Operation Management. This report explains their facility
layout, their strategies along with their whole production process with the help of a process map.
Then it contains their quality control approach and their demand analysis. After analyzing their
whole production process we found some problems and also made recommendations to solve
those problems.

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 Giant Textiles
Company Background:

The Giant Group, a conglomerate including 8 knit and woven garments establishments, was
founded more than 25 years ago. Today with a total of 20 companies, their annual turnover is a
hefty 35 million dollars. With their foresight and adroit planning, the group has prevailed over
the ever-changing dynamics of international trade. Their commitment to quality has been one of
the hallmarks since their inception. Furthermore two concerns of the Giant Group, Shafi
Processing Industries Limited and Jammunna Apparels Limited are ISO 9000 certified. In
keeping with their conviction in quality the Giant Group believes in professional management
and currently boasts several levels of valued addition, from knitting to retail outlets. With
decentralized authority and individually accountable units, a core group is charged with the
overall coordination of the group. Each unit is furnished with its own management software
monitoring their operations, management, human resources and production. Efficiency of the
whole would also entail efficiency of the individual. Accordingly the Giant Group ensures the
well-being of all the 5000 employees. Each of the factories has first aid units with physicians
available 3 days a week. Furthermore every worker is provided with health insurance by the
company, all whom are over stipulated 25 years of age. Not only in order to bolster their public
image and harp on 'social goodwill' perse, the Giant Group actually believes in social
compliance. Furthermore adhering to safety regulations, there are trained personnel for fire
evacuation in all the factories with busbartrunking electric lines that minimizes the risks for fires.
The factory environment, with excellent lighting and ventilation, remains one of the best in
Bangladesh. The Giant Management and Services Limited has been set up to develop technical
know-how on design and management skills in conjunction with the National Institute of
Fashion Design.

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Production strategy:

In Bangladesh, garments industry is very completive industry. As a quality garments, Giant

Textiles have to face high competition in the industry. It’s always challenging to cope up with
these other competitors and satisfy all the buyers. Giant Textiles successfully managed their
buyer and make them satisfied by fulfilled their product requirement. In order to build and
maintain business successfully, Giant Textiles follow some production strategy. Giant Textiles
mainly follow quality based strategy for our production. Giant Textiles never compromise
about quality in their product. The current production facilities also followed the same strategy.
In case of buyer requirement Giant Textiles maintain other flexible strategy like low pricing and
fast production delivery within time frame. So these strategies depends on buyer’s requirement.
But Giant Textiles maintained the quality in their product. To manage effective strategy and
implement those strategy origin apparels pay attention some key factor which are given below:

 Suppliers: To maintain product quality Giant Textiles pay attention towards its

suppliers who supply materials for production purpose. Mainly Giant Textiles import

their raw materials from china and from local market. Before purchasing Giant Textiles

ensure quality and focus on price which will add efficiency on production cost and

quality.

 Product and production design: Giant Textiles design effectively the production

which ensures product design, attributes, appearance, and color and production

capacity under buyer’s requirements. Effective design reduces less amount of waste

product and increase efficiency of production level.

 Human resource management: Giant Textiles manage their worker in order to cope

up product quality and minimize cost. Giant Textiles have around 800 worker and 650

are directly involve with production. 75% workers are female and 25% male. Giant

Textiles hire some experience worker who can handle machineries effectively and they

supervise an instructed other workers as well. Giant Textiles give them proper training

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 and instruction season to make them capable of within quality of high production.

Facility Layout

In the layout facility, first of all they collect their raw materials from the suppliers and they store

raw materials in different store room. If a product get problem in any step those are kept in the

wastage and unfinished product after that if the problem can be solved than those are again

passed into the next step.

There are mainly eight types sample needed for completing a garments order. They

only follow two sampling one is proto sample and another is shipment sample. Proto

sample. It is the very first sample given into the buyer. It is prepared according to the

buyer’s specification. It is a trial sample prepared on product development

department. Buyer wants to see here that how its look likes after applying new

design on it. Any types of fabric and color can be used here. For this type of sample

2-3pcs garments should be made where 1pc for manufacturer and rest of those are

sent to the buyer for correction.

After correcting the sample by the buyers they started spreading and cutting for the

final products.

When the cutting is completed than the process moves to the swing department

and swing department’s only work is swing the product and if a product have any

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problem than those are goes to the wastages and unfinished work section.

Now the product comes to the washing department for washing it out and moves to

the next department.

In this department products needs to be make sure about their quality with the buyer

requirement.

After assuring the quality those goes for Ironing in the Ironing department.

After ironing the product they are come to the next department for the packaging.

Now they are ready for supply and in this department products are waiting for the

supply/transportation.

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Application of production and operations management concepts

 Design and quality: Giant Textiles use Auto-CAD to design their product CAD stands
for Computer aided design which remains for PC supported outline. It is a draft
programming application. Computer aided design configuration has gotten a gigantic
change the Textile Industry. It has made material outlining less demanding and less
tedious. Computer aided design helps Giant Textiles to picture and see their inventive
plan in conclusive shape. It helps them to effectively put away, transmitted, and
transported through PC documents.

Fig: Thread Trimmer

 Pattern Grading: Design Grading is the procedure whereby examples of various sizes
are created from the first ace example. Giant Textiles played out this procedure naturally
by a mechanized framework.
 Quality inspection: Quality is characterized as the level of acknowledgment of a decent
or administration. That is the reason Giant Textiles is extremely watchful about checking
their item. They dismiss an item which appears absconded. Be that as it may, dismissal of
items can bring a few misfortunes. To minimize misfortunes they offer it to the
neighborhood purchasers.
 Thread trimming machine: String trimming is one of the basic procedures in modern
clothing producing. Cutting strings from sewed articles of clothing preceding piece of
clothing completing is a non-esteem included yet unavoidable process. By utilizing
programmed string trimming machine Giant Textiles attire decreasing labor and enhances

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 creation speed of the string trimming segment. These machines are outfitted with suction
engine, trimming sharp edge, table top and waste compartment.

 Metal detector: In the piece of clothing industry, metal recognition is a basic part of the
creation procedure. In present days metal identifier is a critical thought for piece of
clothing producers. Giant Textiles utilize metal detector to check whether there is any
little needle or whatever other metal being discretely appended to the texture. It
guarantees that all items are protected and free from metal contaminants. This is an
indispensably critical thought for Giant Textiles.

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 Operations Management Concepts:

Inputs: Transformation
Output:
:
Order CAD design pants, sample on
the dummy, Pattern grading, The products are
Replacement, cutting the fabric, bundling the shipped to the buyer
panels, sewing area, wash, tread
Raw materials: trimming, ironing and packing.
Quality fabrics

Giant Textiles replaces request of crude materials, for example, quality textures and zippers to deliver the
last item for their shopper. Contributing the crude material a specimen is made. Before making the
sample, CAD (Computer Aided Design) outline of the plant will be readied utilizing programming, for
example, Auto CAD. The specimen is utilized to fit on a sham. It is to check the span of the jeans.
Subsequent to denoting the texture utilizing design, texture is cut on the cutting table. In the wake of
cutting the texture every part is put on the board of the particular sizes. Every board is packaged by at that
point. The jeans additionally washed and pressed to upgrade item quality. There is last commencement
before pressing. The items which are discovered absconded are sold in the neighborhood advertise and
the item that satisfied the quality necessity is sold into the market.

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PROCESS MAP

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1. The Merchandising Department will begin the production phase as they will be
responsible for gathering raw materials. These raw materials include fabric, zipper and
other necessary materials for the production.

2. A CAD design of the pant will be prepared using software such as AutoCAD. The
following process will be carried out based on the design of the pant.

3. The design will be used to create a hardcopy pattern.

4. A sample is made using the raw materials and the hardcopy pattern. The sample is used
to fit on a dummy.

5. The sample on the dummy is used to check the fitting of the pant. This is the first
inspection activity in the whole production process.

6. The decision involves whether to accept or reject the fitting of the pant. If he fitting is
accepted, it flows to the next step of production. If the fitting is rejected the sample is
dumped and another sample is made (A).

7. Pattern grading is one of the most important process in the production phase. Pattern
grading depends on the buyer's requirement of the size of the pant. For instance, if the buyer
demands three different sizes of the pant-Small (S), Medium (M) and Large (L)}.

8. The primary material i.e. the fabric is marked using the patterns.

9. After marking the fabric is spread on to the cutting table and this process is called fabric
spreading.

10. All the fabric is cut on the cutting table and this process is called bulk cutting.

11. After cutting the fabric each part is placed on the panel of the respective sizes.

12. After bundling the panels all the fabric is numbered. The different bundles will be having
different numbers. For instance, all pieces of fabric under the Small (S) bundle will be
having the same number. This avoids fabric shading.

13. The fabric now enters the sewing area and a complete pant is made.

14. The pant now enters the QC (Quality Control) inspection. Each and every product is
checked for quality based on whether the product i.e. pant matches the level of
quality required.

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15. The decision to accept or reject the pant depends on the QC inspection. If the product is
accepted, it flows to the next stage of production. If the product is rejected it is sold
to the local buyers (B).

16. The pant goes through wash. Water and a small margin of chemical dye is used in the
washing process.

17. After the products comes out of washing each and every pant goes under thread
trimming. The extra thread in the pants are trimmed or cut.

18. Each product is checked inside out to find any defects.

19. If no defects are discovered and the product is accepted, it goes to the ironing section.
If the product has any defects it is rejected. If the inside out checking team rejects a pant
because of the uncut threads it is being sent to the thread trimming section again, but if it is
rejected for some other reason it is stored and sold in the local market(C).

20. The accepted pants from the inside out check is ironed.

21. The metal detector check requires each pant to go through a metal detector. This is done to
avoid any small needle or any other metal being discretely attached to the fabric.

22. If there are no metals attached on the pant it is accepted and goes in to the next phase. If
there are metals attached on the pant, it is rejected and sent to the removing metal section
(D).

23. The pants that fail the metal test come here and the process of metal checking is
done again.

24. This is the final inspection in the production process before the product is packaged.
This section is a thorough summary of all the inspections in earlier stages.

25. If the product is accepted in final inspection, it flows to the packaging section. If the
product is rejected it is sold in the local markets (E).

26. The finalized products are packaged.

27. The products are shipped to the buyer

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Quality Control issues:

Quality is defined as the ability of the product to consistently meet or exceed customer
expectations. For RMG (Ready–Made Garments) product the quality measurement is a bit
different. In this industry quality is measured in terms of the quality of the fabrics, color, cutting,
sewing, and the finished garments defect. Giant Textiles also uses these categories to measure
the quality of their product. To ensure the quality of their product Giant Textiles inspect the
product different in the measurements mentioned above.

To find out the quality of the fabrics Giant Textiles use the American Apparel Manufacturers
(AAMA) point-grading system also known as 4-point grading system. Points are assigned in
End-End shade test, Shrinkage test, different types of spot checking etc. If the penalty points are
above 40 in the 100 square yards of fabrics then the fabrics is considered defective.

To find out if the cutting and color is right, quality control employee inspect the product after it
has been cut then it is passed to sewing section. After sewing has been done, the product goes to
the table, which is at end of the sewing line, for the inspection. 15-20 workers work under the
quality control inspector to check the product after sewing has been done. Then is transferred to
metal detector to find any metal attached to it.

After the product is ready, it goes for a final inspection to find any types of defects in the
product. In this step, if any defects are found the employees try to solve the defect. Then the
products are washed and iron pressed then passed for tagging the labels and then packing.

Giant Textiles got Okeo-tex standard certificate which implies that they do not use any harmful
substances in their production process which ensured safety and quality for their customer. Giant
Textiles got international quality certification like ISO 9000 but not yet ISO 14000.

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Demand Forecasting:

 Forecasts based on time series data: Forecasting techniques based on time series data

are made on assumptions that future values of the demand can be estimated from past

data. Giant Textiles plot the data and analyze any patters that might appear to forecast

the demand. Time series data is not the only tool to for Giant Textiles to forecast their

demand. They also make frequent contact their existing buyers to know the possible

demand they might get. In the end, the decision of how much product should be made

comes from executive opinion. A small group of top-level managers meet and

collectively develop a forecast of their demand from the data they have collected from

time-series analysis and data from their buyer. They also take the economic and

political conditions into account when they forecast their demand.

 Direct order: During some time frame they don’t do any forecast for their demand.

They just produce the amount they got ordered for. This is because of the high volatility

of the RMG Industry. Sometime Giant Textiles also use Just in time (JIT) in which they

ask for a specific amount of raw material from supplier and produce the amount what

they are ordered for. This is because of the high volatility of the RMG Industry.

Sometime Giant Textiles also use Just in time (JIT) in which they ask for a specific

amount of raw material from supplier and produce the amount what they are ordered for.

It reduces inventory cost. It also increase efficiency and reduce waste. Giant Textiles in

their short time of business found that their demand fluctuates along with the economic

and political condition of the country. Giant Textiles find it hard to predict the condition

and account this in forecasting. So during some time frame they just produce what they

are ordered for to use raw materials efficiently and minimize cost.

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Operational Problems:

 Too much waste: One of the biggest problem for Giant Textiles in their operation is they
waste too much materials which makes their operations less efficient. They also incur
cost while getting rid of the waste materials.

 Lack of motivation: Their workers have serious lack of motivation. They waste lots of
time in roaming and talking which slow down the production process and makes their
operation less efficient.

 Unskilled worker: Lots of worker doesn’t know how to use machines effectively.
They have a training program but it is not very effective. Workers sometimes mishandle
the machines.

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Recommendations


Implement total quality management (TQM): We would also like to
recommend them to implement TQM Approach. By Total Quality Management
now the factory will check the raw materials right after buying them and can sort
any defects. Thus they will be able to reduce waste and improve quality in the
later part of the production.

Proper training facility: Proper training facility should be provided to labors as
we all know that the labors of our country are not well trained and not much
educated and this lack of training can hamper the reputation of the factory.

Effective Management: Management should control the whole production
carefully to reduce time and material waste. They should also take steps to
motivate the workers.

Safety Issues: Giant Textiles should also concern about the safety of each of their
workers. Their factory lack good ventilation system. So they should try to install a
good one to avoid any extreme accident and damage.

If the above recommendations are taken into account by Giant Textiles they would able to
increase their efficiency and also their profit margin.

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