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East West University: Term Paper On POETICGEM Limited
East West University: Term Paper On POETICGEM Limited
East West University: Term Paper On POETICGEM Limited
Term paper on
POETICGEM Limited
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Term paper on : Critical Analysis of Production Operation
Management of a particular Company
Course Code: MGT-337
Corse Title: Production Operations Management
Section: 4
Submitted to:
Kaniz Fatima
Senior Lecturer
Department of Business Administration
Submitted by
Group-6
Name University ID Serial No
Kowsar Ahamed 2013-2-10-061 1
Afsana Zaman 2016-2-10-185 14
Somia Binta omar urmi 2016-2-10-191 15
Rafat Rizwan 2017-2-10-143 41
Md. Isman Alve 2017-2-10-200 42
Naim Hossain 2015-3-10-096 4
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Letter of Transmittal
13th September, 2020
Kaniz Fatima
Senior Lecturer
Dear Ma’am,
With due honor, we wish to inform you that it was a matter of great pleasure as well as learning
to prepare a term paper on Critical Analysis of Production Operation Management of a
particular Company under the course of Production Operations Management. We collect &
studied materials in due time and analysis these & eventually finalize the term paper.
Actually, we have enjoyed more in preparing this term paper & record new statements. We have
worked hard to prepare this term paper. So, we would highly oblige if the content of the term
paper has been accepted to you.
Though we have put our best efforts yet it is very likely that the term paper may have some
mistakes & omissions that are unintentional. So, we hope that the term paper will worthy of your
consideration.
Truly Yours,
Kowsar Ahamed
Naim Hossain
Afsana Zaman
Rafat Rizwan
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Acknowledgement
We take this opportunity to convey our sincere thanks & gratitude to all who have directly or
indirectly helped and contributed towards the complication of this Term paper.
At the very beginning all praises for almighty Allah for enabling us to complete the term paper
with good and sound health. Then, we would like to take this opportunity to express our gratitude
to our course instructor Kaniz Fatima ma’am (Senior Lecturer, Department of Business
Administration) for his continuous inspiration, supervision and patience. Without his guidance
and support it would not have been possible to come this far.
We also sit with our group members for a numbers of occasions, discussing the ways of making
the term paper rich and sound. Without their help the term paper would have been incomplete.
So, we are cordially grateful to them.
At the last we want to thank that who have played an very important role in preparing this term
paper Mr Kawshik Ahmed who is Senior merchandiser of POETICGEM Limited. He have given
us the important information and helped us in preparing this term paper.
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Table of Contents
East West University..................................................................................................................................... 1
Letter of Transmittal ................................................................................................................................. 3
Acknowledgement .................................................................................................................................... 4
Executive summary ....................................................................................................................................... 7
1 Introduction ........................................................................................................................................... 8
1.1 Objective of the Study................................................................................................................... 8
1.2 Limitation of the Study ................................................................................................................. 8
1.3 Methodology ................................................................................................................................. 8
1.3.1 Primary data source ............................................................................................................... 8
1.3.2 Secondary data source ........................................................................................................... 9
1.4 Literature view .............................................................................................................................. 9
1.5 Company overview ....................................................................................................................... 9
2 Product Categories: ............................................................................................................................. 10
3 Productivity ......................................................................................................................................... 11
3.1 Labour Productivity .................................................................................................................... 11
3.2 Machine Productivity .................................................................................................................. 11
3.3 Capital Productivity .................................................................................................................... 11
3.4 Improving Productivity ............................................................................................................... 12
3.4.1 Start using best possible line layout .................................................................................... 12
3.4.2 Minimizing waste................................................................................................................ 12
3.4.3 Cost cutting ......................................................................................................................... 12
3.4.4 Training to sewing operators............................................................................................... 12
3.4.5 Installing better equipment.................................................................................................. 13
4 Process Strategies................................................................................................................................ 13
5 Facility Layout .................................................................................................................................... 14
6 Product strategies ................................................................................................................................ 15
7 Scheduling........................................................................................................................................... 16
8 Forecasting .......................................................................................................................................... 17
9 Inventory Management ....................................................................................................................... 18
9.1 Types of inventory ...................................................................................................................... 18
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9.2 Objective of inventory management ........................................................................................... 19
10 ERP / MRP system.......................................................................................................................... 20
11 Conclusion ...................................................................................................................................... 21
12 References ....................................................................................................................................... 22
12.1 Interview Questions .................................................................................................................... 22
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Executive summary
We have prepared this report on “Poeticgem International” which is a part of PDS Multinational
Group. PDS Multinational Group multinational is operating globally. It is one of largest leading
buying agency for consumer goods, managing the supply chain for retailers and brands
worldwide. Poeticgem International mainly deals with garments items. In this report are
presenting the operation related activities. The main thing a of organization is product or service
that they are selling. We have discussed about the product category in this report. We have also
discussed about the productivity of this organization. In productivity we have focused on raw
materials, labor/staff, capital, energy. We also suggested in the term paper can they improve their
productivity. In the process strategy they are following assembly process strategy. In the facility
layout part we have mention about their facility layout and how can they improve that. Another
important topic is forecasting. Forecasting means measure the next period demand by using the
past demand data. It is very important for an organization to don not make any mistake in
forecasting.We try write about their forecasting method. Inventory management is one of the
major are of a organization. If a organization manage their inventory well they can earn more
profit. Sometimes because of poor inventory management organization facing loss and lose the
customer. We have discuss in detail the inventory management. ERP and MRP system of any
organization control the whole activities of the organization. So it is very vital to use very strong
and user friendly systems. So that organization may not face any lacking in future. On the other
hand if they use user friendly system then the employees will not face any difficulty while using
it.. Besides that also cover the important topics such as scheduling, product strategy. At every
topic we try to mentioned how can they improve in that particular section. We try to cover the
every possible topic of operation production management.
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1 Introduction
In service based industries one of the fastest growing forms of market structure is that
merchandising garments. Certain aspects business contracts tend to be idiosyncratic in nature
thereby attracting a great deal of interest by academics and business analysts in recent years.
Various explanations have been proposed for the widespread use of merchandising contracts in
certain industries. While a great deal of the merchandising contract has been explained in the
literature , there remains certain aspects of this form of agreement that has yet to addressed.
1.3 Methodology
The process used to collect information and data for the purpose of completing this assignment.
The methodology may include publication research, interviews, surveys and other research
techniques, and could include Therefore the methodology includes both primary and secondary
data.
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Different Books Related to Organizational downsizing and performance.
Observing the rules and formats
Class Lecture Notes
Interview
Merchandising is about planning and developing a strategy to enable a company to sell a range
of products that delivers sales and profit targets. A Merchandiser will work closely with a Buyer
to ensure the product that’s bought will enable them to achieve the sales plan. It’s often
explained as getting the right merchandise, in the right place, at the right time, in the right
quantities at the right price. The work process of merchandising begins at getting order from
buyer until shipment of that order.
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Its annual turnover is near about US$ 11 billion. Most of the order comes from UK Office to
Poeticgem International BD Ltd.Poeticgem International Bangladesh Limited, the Group’s
principal activity is export trading of consumer products (Garment, Leather & Fashion
Accessories, Jewelry & Watch, Footwear) Other activities include provision of marketing
services, export assistance services, investment management, general trading, distribution and
wholesaling, design and marketing, apparel exporting, property rental and property investment
and investment holding. Operations are carried out in UK, United States of America, Central
Europe, Canada, Middle East, Africa and South Africa.
2 Product Categories:
Poeticgem International makes garment products. Their main products are ready-made garments.
They have a lots of variety of products. There are some product categories in their website, they
are
Apparel
Ladies wear
Men wear
Boys wear
Essential
Under this five categories they have a good lineup of products, some of them are mentioned
bellow.
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T Shirt, Trousers, Denim, Twill, Jackets,
Shirts, Skirts, Top, Cardigans, PJ Set, Shorts,
Products
Vest, Underwear, Sweaters, Pull over, Lingerie
3 Productivity
In simple terms, Productivity is the ratio of outputs divided by the inputs. In this case our output
is ready-made garments, and our inputs are labour, capital, energy etc.
In interview they said that, in one factory 290 labour work for 8 hour per day, and they produce
around 2500 unit products.
So, in this situation their labour productivity is = 2500/(190*8)= 1.645 unit/ Labour-hour
In interview they said, on that factory they have around 100 sewing machines.
Investment of capital is a broad calculation by itself, but for the calculation we tried to
understand total invested capital for a product. They said that , for producing 2500 units of
product, they invest around $13,800.
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So, here capital productivity is = 13800/2500 = $5.52 per unit.
Here are some ways, that they have taken to improve their productivity.
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3.4.5 Installing better equipment
If machines or equipment don’t perform well operator motivation goes down. Repetitive
breakdown of machines increase the loss time and bring down overall line efficiency and labour
productivity. So Poeticgem International has install 50 new machines last year to improve their
productivity.
4 Process Strategies
A process strategy is an organization’s approach to transforming resources into goods and
services. The objective of a process strategy is to build a production process that meets customer
requirements and product specification within cost and other managerial constraints. The process
selected will have a long term effect on efficiency and flexibility of production as well as on cost
and quality of the goods produced.
Process Strategies choice is demand driven. The two key questions in process selection are:
Answers to these questions will serve as a guide selecting appropriate process strategies. Volume
and variety are inversely related. A higher level of one means a lower the other.
There are multiple Process Types. Among which Poeticgem Company of PDS Multinational
Group follows - Repetitive or assembly line or mess production process type. This process
technology is suitable for narrow range of standardized products in high volume. Example -
Purchase readymade garments manufacturing, automobile manufacturing. Poeticgem selected
this process because they produce high volume of standard goods. And skill of worker is
generally required low. One worker or labor doesn’t require multiple skills. Their current process
strategies are successful as there production process is standardized..
Poeticgem Company produce volume focused goods rather than variety. Special purpose
equipment is used for different jobs in different part of the operation management. Skill required
to do these jobs are low. Process Strategies Example -
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5 Facility Layout
For organisation to have an effective and efficient manufacturing unit, it is important that the
special attention is given to facility layout. Facility layout is an arrangement of different aspects
of manufacturing in an appropriate manner as to achieve desired production results. Facility
layout considers available space, human resource, and final product, safety of users and facility
and convenience of operation. An effective facility layout ensures that there is a smooth and
steady flow of production material equipment and manpower at a minimum cost.
To gain this objective or organisation need to ensure better training for workers and supervisors
creating awareness about health and safety standards, optimum utilization of workforce and
equipment. And encouraging empowerment and reducing administrative and other indirect work.
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There are multiple facility layout which are followed by different organisation and businesses
based on their requirement. Poeticgem Company follows Product Facility layout – design to
produce a specific product efficiently. They produce their raw materials to the final product in
separate sections. Advanced sections in them produce fabrics from cotton. Under section does
the necessary cuttings and design. Then other section does the swimming of fabrics as per the
design and cutting to produce a final product. The final section checks the product quality and
does the packaging for inventory keeping and to ensure safe product delivery to the buyer.
Poeticgem have multiple separate warehouses for raw material and final goods inventory
keeping. Product Facility Layout Example -
6 Product strategies
Product strategy defines hot product should achieve and how that supports the organisation.
Product strategy outlines how the product will benefit the business it describes the problem that
the product will solve and the impact that it will make on customer and the company.
Poeticgem company product strategies combination of made to order and assemble to order.
Company follows mostly made-to-order product strategies in this case product is prepared after
receiving the order from buyer. Buyer provides the requisite for number of products, design and
after finalizing everything and receiving the order product production process started. Poeticgem
in some cases follows assemble-to-order product strategy. In this case some raw materials are
partly prepared before receiving orders and after receiving the orders rest of the process of
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production is started. For example: Poeticgem Company in this case has the fabrics ready and
some cases the design is also ready. The buyer just places the purchase order and the production
process started from the party completed processes.
Poeticgem Company takes order for semi-customized product for high volume quantity.
Poeticgem Company wants to focus on quality of the product rather than quantity. But most of
the cases the buyer demand mostly low cost and moderate to high quality product. Poeticgem
follows low cost - moderate quality product method rather than high cost - high quality product
method.
Target market of Poeticgem Company is International buyer. International buyer’s places order
for higher quantity of semi-customized standardized goods. Poeticgem Company wants to be a
target market Challenger. But currently they are holding a follower position in the target market.
7 Scheduling
Scheduling can be defined as “ prescribing of when and where each operation necessary to
manufacture the product is to be performed. It is also defined as establishing of times at which to
begin and complete each event or operation comprising a procedure”
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PDS Multinational always follow company rules and regulation. Basically scheduling is a short-
term execution plan of a production planning model. They schedule are an assignment problem
that describes into details which activities must be performed and how the factory’s resources
should be utilized to satisfy the plan. Detailed scheduling is essentially the problem of allocating
machines to competing jobs over time, subject to the constraints. The principal of scheduling is
to plan the sequence of work so that production can be systematically arranged towards the end
of completion of all products by due date.A right scheduling plan can drive the forecast to
anticipate completion date for each released part and to provide data for deciding what to work
on next. Questions about “Can we do it?” and/or “How are we doing?” presume the existence of
approaches for optimization The aim of a scheduling study is, in general, to perform the tasks in
order to comply with priority rules and to respond to strategy. An optimal short-term production
planning model aims at gaining time and saving opportunities. It starts from the execution orders
and it tries to allocate, in the best possible way, the production of the different items to the
facilities. A good schedule starts from planning and springs from respecting resource conflicts,
managing the release of jobs to a shop and optimizing completion time of all jobs.
8 Forecasting
Organization use forecasting methods of production and operation management to implement
production strategies. Forecasting involves using several different methods of estimating to
determine possible future outcome for the business. Planning for these possible outcomes is the
job of operation management.
PDS Multinational always follow forecasting method and they got many advantage.
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• Better utilization of capital and resources
9 Inventory Management
Inventory management refers to the process of ordering, storing and using company’s inventory.
This includes the management of raw materials, components and finished products, as well as
warehousing and processing such items. For companies with complex supply chains and
manufacturing processes, balancing the risks of inventory gluts and shortages is especially
difficult. To achieve these balances, firms have developed two major methods for inventory
management: just- in- time (JIT) and materials requirement planning. (MRP).
• Lost customers.
PDS Multinational effective inventory management is beneficial for their cash flow and also
their production systems. In addition to the importance of keeping inventory as lean as possible
so company have more cash available, inventory control should also be coordinated with finance
and accounts payable for the purpose of making strategic decisions.
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• Inventory for resale
• To maintain minimum working capital as required for operational and sales activities.
• To optimize various costs indulged with inventories like purchase cost, carrying a cost,
storage cost, etc.
• To keep material cost under control as they contribute to reducing the cost of production.
• To ensure everlasting inventory control so that materials shown in stock ledgers should
be physically lying in the warehouse.
• To facilitate furnishing of data for short and long-term planning with a controlled
inventory.
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10 ERP / MRP system
They use SAP software to monitor the whole ordering process. It is an online software SAP
stands for Systems Applications and Products in Data processing. It is the most advanced
Enterprise Resource Planning (ERP) system. It helps to keep their business moving forward.
Supply chain solutions from SAP give them visibility and flexibility, so they can always come
through for their customers. It is the smart automated processes and inside into every corner of
the business so they can move from crisis to opportunity. To operate SAP software employees
was conducted some training. It is the name of both the online financial and administrative
software and the company that developed it. SAP is made up of individual modules that perform
various organizational system tasks. SAP is one of the number one providers of business
software solutions towards better work and data management in organizations across industries.
SAP training helps one to gain expertise in software and programs that run them along with SAP
modules. SAP builds a strong technical support for organization. In SAP there are many
categories like: ERP and Finance, CRM and Customer Experience, Network and Spend
Management, Digital Supply Chain, HR and people engagement, Business Technology Platform,
Database and Data Management, Analytics, Application Development and Integration etc.
Poeticgem International uses this SAP software for their ordering procedure. There are some
requirements from buyer that how many pieces of products will fit into single packet. So
production manager has to make a packing list. It is done by SAP software, the make lists by this
software and booking is given through online. It includes sample’s picture, size, fabric
composition and other details. It acts as an evidence by which buyers can make payments.
They have no implementation cost because they use it in online. Through SAP they an monitor
the how much inventory they have, actual sales, costs, products details.
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11.2 Recommendation:
Their production depends on when they get orders from buyers. That is customizing because
they prepare after receiving orders. So they can follow premade method where they can utilize
their materials, time, labor force efficiently. It will also reduce the over dependability of foreign
buyers orders. Moreover in any crisis moment they can have their own production. For example
in this pandemic situation it is difficult to expect orders from buyer.
By this they can also target national consumers too.
They are following product facility layout method. Beside that they can also follow process
facility layout or can combinedly use hybrid facility layout where they can segment their work in
different unit. So that cutting, designing, swing, packaging can be segmented unit wise. In order
that even if one unit is turned off, the whole production process will not be stopped. It will
increase effectiveness and efficiency more.
12 Conclusion
Poeticgem International manages supply chains for major brands and retailers worldwide.
They provide sourcing solutions to leading retailers and brands in the world. They are a customer
centric organization that builds and allocates dedicated teams to service each retail partner in
their global client base and building long-term relationships with a broad range of retail and
fashion leaders.
They work as trusted partners to their clients delivering the right solution across design, virtual
manufacturing and distribution businesses. They focus on customer’s needs by ensuring
product’s design, sourcing, manufacturing, warehousing, shipping and financing.
Poeticgem International’s product development and design specialists are based in UK, Europe,
US, Canada, Australia and South America and track the latest consumer trends in the fast paced
global market.
The Company will be setting up two manufacturing factories in Bangladesh, with the aim to
further enhance brand equity and increased brand consumption. Poeticgem international will be
establishing facilities, one at Adamjee Export Processing Zone and another at Mawna, Gazipur
district, near Dhaka.
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13 References
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10) What are you doing for increase productivity?
11) Process Strategies? Process Types-
12) Job Shop
13) Batch
14) repetitive/assemble/mass
15) Continuous
16) Why selected the particular process types?
17) Are the current process strategies successful or do you want to make changes?
18) Volume or variety focused?
19) Do you use specialized equipment for every different job or same equipment for multiple
jobs?
20) What is the labor skill required to do the job? High/low/medium
21) Work in process inventory? High/Low/Moderate
22) Facility Layout- Types?
a) Process layouts - Group similar resources together
23) b) Product layouts - Designed to produce a specific product efficiently
24) c) Hybrid layouts - Combine aspects of both process and product layouts
25) d) Fixed-Position layouts - Product is too large to move; e.g. a building
26) Do you have multiple facility and separate warehouse for each?
27) Is the current strategies successful or do you want to make changes?
28) Product strategies: Types-
29) Made to order? - Prepared after receiving order (Customized)
30) Assemble to order? - Partly prepared before receiving order (Semi customized)
31) Made to stock? – Standardize (Pre made)
32) Product type?
33) Pre-made? Customized? Semi customized?
34) Is the current product strategies successful or do you want to make changes?
35) Volume or variety focused?
36) Quantity of Quality Focused?
37) High Cost - High Quality or Low Cost - Moderate Quality?
38) Target Market National or International?
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39) Target Market?
40) Leader b) Challenger c) follower d) niche
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