Report on Cottonfield as a merchandiser

1.1Background

This Internship Program as well as this report is an indispensable of my courses of Business Administration. After completion of our courses in the different areas of studies, students are sent to different reputed Business organization to

acquire the real life experience. So I was placed in Cottonfield to understand the merchandising system of the RMG industry in Bangladesh and selecting the topic on the basis of my findings like “Cottonfield as a merchandiser”

1.2 Origin of the report

In today’s world only academic education does not make a student perfect to become competitive with the out side world. Internship is highly needed to gain idea, knowledge and experience.

Northern UniversityBangladesh one of the reputed private universities in Bangladesh, has designed the curriculum of the MBA course such a way that the international standard graduates will be produced. After completing 63 credit hours, one student needs to go for further 3 credit hours internship program in a commercial organization.

Cottonfield is a place where I could learn the business dealings. This factory has introduced some modern garments scheme that has got high market demand. As it maintain the pace with the competitive business world, its activities culture, philosophy and style leads an intern student to be the best at any field of working life

As an internship student I have got the opportunity to work with this organization for three months and acquire idea about real business world.

1.3 Objectives

The key objective of the report are as follows:

Identify the merchandising division’s work of Cottonfield
Identify the merchandiser duties and responsibilities
Identify the opportunities and threats for knitwear firms
Theoretical aspect of merchandising division

1.4 Methodology

The report has been prepared based on secondary data such as – the published company annual reports, various publications, and company documents. Some sort of primary data was collected by with the supervisor and employees of the company.

1.5 Internship at Cottonfield

My 12 weeks at the Cottonfield as an internee had been the most enjoyable time of life. Doing my internship at one of the leading factory in Bangladesh, I believe I have accumulated an experience unmatched to any other.

I am extremely happy to work in such a report. Though as a student of finance and marketing it was a new situation to me, however it was totally new practical experience to me, it was very much enjoyable to me.

The working environment of merchandising and administration department of the Cottonfield is conductive and friendly. The stuffs are specialized in their respective fields. Each of them works on their own and there is supervision from the top. The motivation the staff, I believe comes from the very sense of responsibility for his or her work.

My overall experience had been very absorbing and I believe internship period at the Cottonfield will definitely help me a lot in building my future life.

2.1 Mondol Group

Mondol group is a vertical integrated knit garments manufacturing and exporting composite unit. The group started its business in 1991 with a small garments sewing factory. At present the group has facilities for yarn spinning, fabric knits, dyeing finishing and garments cutting sewing, finishing, packaging and exporting.

Mondol group has the folloing member units

1. Mondol Textile Ltd.

2. Mondol Yarn Dyeing Ltd.

3. Montex Fabric Ltd.

4. Montex Fabric Ltd.

5. Mondol Securities Ltd.

6. Montrims Ltd.

7. Appolo Fashions Ltd.

8. Cotton Concern (BD) Ltd

9. Cotton Club (BD) Ltd

10.Cottonfield (BD) Ltd

2.2 ORGANIZATION CHART

ORGANIZATION CHART

2.2.1 COMPANY PROFILE

Company Name : COTTONFIELD (BD)LTD.

100% Export Oriented Knit Garments.

Head Office Address : House No # 8, Sector # 11, (1^st Floor)

Sonargaon Janapath Road, Uttara New

ModelTown, Dhaka-1230, Bangladesh.

Factory Address : Shima Complex, Plot # 23, Shataish Road

Gazipura, Tongi, Gazipur.

Year of Establishment : 2004

Location of the Factory : Towards Gazipura after Tongi

Only 15 KM Baridhara Diplomatic Zone

Only 10 KM ZiaInternationalAirport.

Area of the Factory : 77,500 Sft

( 5 Floors, Each Floor 15,500 Sft.)

a) Ground Floor : Fabric Store

b) 1^st Floor : Office, Go Down

c) 2^nd Floor : Sewing Floor, Iron, Folding Section

d) 3^rd Floor : Sewing Floor, Iron, Folding Sectio

e) 4^th Floor : Cutting Section, Mosque, Dinning Hall.

Trial production : Started from 1^st December 2004

Commercial Production : Started from 1^st February 2004

Products Manufacturing : T- shirt, Polo shirt, Tank top, Vest, Trousers.

LIST OF MACHINE

One Needle Lock : 140 Sets

Over Lock : 200 Sets

Flat Lock : 25 Sets

Button Hole : 04 Sets

Button Stitch : 04 Sets

Rib Cutting : 05 Sets

Back Tape : 02 Sets

Production Capacity Per Day : Polo shirt 10,000pcs Or T- shirt 20,000pcs.

Number of Employees : 1100

2.3 Fabric Inspection

Fabric inspection is a major operation in the quality control process. The purpose of fabric inspection is to ensure that the fabric inspection is confirmed and the defect label is with in acceptable tolerance.

There are three stages at which inspection may be carried out as follows:

Gray fabric inspection
Intermediate inspection
Final inspection

2.3.1 Gray fabric inspection:

Gray fabric inspection will be generated on up to b

uyers requirement for standard quality. Fabric type, with, different type of defects will be checked here. Minimum 10% the fabric will be checked by using 4 point method.

Requirements:

Inspection table
Arrow sticker
Measurement tape
Inspection form
GSM cutting machine
GSM measurement meter
Highlight pen
Ball pen etc.

2.3.2 Intermediate Inspection:

Intermediate inspection, the standard speed of the wrapping role is 20 meter per minute. The standard lighting distance is 1 meter. Light should be displayed in 90 degree angel and view from 45 – 90 degree angel.

2.3.3 What is 4 point method?

The 4 point system also called the American Apparel Manufacture Association (A.A.M.A.) point grading system for determining fabric quality. This is widely used by producers of apparel fabric.

Fabric defects are assigned point value based on the following:

Size of defect Penalty

Defects length up to 3 “ 1 point
Over 3” up to 6” 2 points
Over 6” up to 9” 3 points
Over 9”, any hole 4 points

Different type of defect

A gray fabric can contain many type of defect as follows:

Spot
Slab
Napes
GSM hole
Oil spot
Knot
Dia mark
Uneven Dyeing
Oil mark

2.4 STORE

Store room is a place where we store something for safety or protection. Store is very important part in a factory. A well decorated store can give significant advantages. Two types of stores are available in the factory.

Store for raw materials

Store for accessories

List of goods:

Store for raw materials.

Different types of fabrics available in the raw materials store like:

Single jersey
Double jersey
Rib fabric
Fleece
Interlock
Pique etc

Here goods arranged in color wise, fabric type wise. Five large self’s are available to store raw materials. There is no use of electric light or electricity in the store for fire protection. A weight measurement machine is available here to measure the weight of raw materials like fabric.

Store for accessories.

Trims and accessories are available here:

Different types of trims
Different types of Label
Sewing thread
Tissue paper
Poly
Tag pin
Price sticker
Button
Zipper
Shoulder tape
Scotch tape
Needles etc.

Here goods arranged in self’s and lay in floor in carton.

2.5 CUTTING ROOM

Cutting can be divided into two.

1. Trail/ test cutting

2. Bulk cutting

Trial/ test cutting: The marker ratio of trial cutting should be different then bulk cutting. In trial cutting we should try to cut all sizes & minimum quantity.

Bulk cutting: We should not go for bulk cutting without approval of Q.C. department & pattern correction team.

2.5.1 Dispatch of cut work

Collect the order quantity along with color, size breakdown for style or P.O.
Collect the fabric & other specified accessories for cutting
Collect the fabric GSM report
Collect the shrinkage report
Check with pattern section for confirming all shrinkage in corporate in pattern or not
Collect the fabric test report
Fabric relax for shrinkage
Determine the fabric width
Make a marker as per ratio
Lay the fabric
Keep minimum 8 hours for lay shrinkage

Check the marker for grain line & counting everything is ok or not
Cutting
Numbering
Checking part
Send for printing, embroidery etc
Collect from the printing room
Additional work: part replacement

2.5.2 Cutting room equipment:

Cutting table
Cutter or knife
Scissor
Numbering machine
Hand gloves
Lay cutting machine
Pattern machine
GSM cutter
GSM scale
Marker pan
Marker paper
Measurement tape
Piping machine

2.6 SAMPLE SECTION

Sample is the physical form of buyer specification or style or design. In other way, we can say Sample is the representation of mass production.

Different type of sample:

Marketing or Sales man sample

(From available/ ready stock)

Counter or reference sample

(Based on buyers specification but using available raw materials)

Fit sample

(Using actual raw materials)

Pre-production sample

(Before production & different size sample)

Shipping sample

(After production & buyer counter sample)

2.6.1 Sample making procedure

Which sample/ Type of sample
Sourcing of raw materials
Sourcing of accessories
Making a pattern as per buyers requirement
Making sample

2.6.2 Sample approval procedure

Making a sample as per buyers requirement

↓

Sample forward to QC team

↓

Sample review as per buyers requirement

↓

Approval signal from QC team

↓

Sample send to buyer

↓

Review of buyer’s technical team

↓

Comments given by the buyer

2.7 SEWING SECTION

Sewing operator sew garment according operation with sewing allowance. In every sewing line has a check point where check the sewing mistake.

We use different sewing method in this section. Effective sewing system combined with new planed layout and new sewing machine can give a significant advantage in many market areas.

Most used/ common system

Conventional Bundle System
Progressive Bundle System
Modular Manufacturing System
Toyota Sewing System

CONVENTIONAL BUNDLE SYSTEM

In this system, operators collect the bundle from storages and return it after completing the sewing. The sewing machine lay out is random.

PROGRESSIVE BUNDLE SYSTEM

In this system, operators collect the bundle from racks and passes it to the next operator. The sewing machine lay out is sequence.

MODULAR MANUFACTURING SYSTEM

It is very effective system in the sewing method. Each and every operators are multy skilled. This system applied for fashioned garments.

TOYOTA SEWING SYSTEM

In this system, operators stand to work and machine lay out in a “U” shape. A supervisor is available to help with technical information.

2.7.1 Different types of machine are use in sewing section:

Flat lock machine
Over lock machine
Single needle machine
Plain machine
Button hole machine
Button attach machine
Piping machine

2.7.2 Process Breakdown of a T – shirt

organogram

2.8 IRONING & FINISHING

Ironing and Finishing department is the most important department. It is the last stage of finish garment.

Ironing – object of ironing is to giver the actual shape of the garments.

2.8.1 The types of ironing equipment which are available in the factory are:

Boiler machine
Iron
Long table
Body & sleeve board
Two pipes (One for steam and another for water)

2.8.2 Finishing – item those can be matched by he finishing equipment are:

Main label
Care label
Size label
Price label
Hang tag
Tissue paper
Poly
Carton

2.8.3 Finishing Department Machine

Tag gun machine
Spot remover machine

The vendor Marketing Program of COTTONFIELD offers short term Trade Finance & Services to qualified apparel exporters in Bangladesh. Although in the year 2007 COTTONFIELD has approved of term long facility of maximum US$ 2.5 million with a maximum tenor of three years under the program, it had proposed to hold the term loan facility till there is a clear picture of the garments export.

3.1 An Order Procedure for a Buyer

At the beginning of a season we received Design Pack. After that we have to Quote Price, which we have provide with Sample and Open Costing formet.
Next we received Order Confirmation messages from buyer with Excel chart & Confirm Sheet.
After received contract sheet we have to send for generate PO sheet. At that time we will receive PO and LC.
Later we have to send Fit Sample within 15 days.
And later on we submit Pre Production Sample after receiving the 1^st Fit Sample approval.
Later we get Pre Production Sample approval, than we go to Bulk production.
After Bulk production, we send Shipment Sample to Buying House.

3.2 Job Responsibilities of Assistant Merchandiser

3.2.1 After confirmation of order:

To work under the guidance of his superior merchandiser
Learn to follow up check list
Learn hoe to match zipper
Learn about different counts of sewing threads.
Learn how ton weight fabric
Learn how to measurement CBM
Study export documents
Booking fabric with buyer approval
Booking accessories with buyer approval
Find out construction and weight of fabric
Arrange Lab dip & Yarn dip approval
Take sample fabric approval
Collect wash report
Make trims card
Make fabric card
Get fabric quality approval
Arrange fabric test
Make shade card & get approval
Collect color wise breakdown
Collect size ratio
Collect packing instruction
Collect carton & poly measurement

3.2.2 Before & During Production

Check whether bulk fabric and accessories are in house
Check whether sample is approved for bulk production
Check whether swatch card is approved by buyer
Check whether trims card is approved by buyer
Check whether factory PP sample is approved by buyer
Arrange inline inspection
Check production status & wash status
Check style & measurement
Check wash effect
Arrange poly and carton
Discuss the merchandising manager
Collect production per hour
Collect sewing and finishing status

3.2.3 During after shipment:

Send shipment sample to buyer
Send copy of document to buyer
Check export section when goods arrived in sea port in time.

3.3 Calculating the fabric consumption for a basic style T – shirt

After the Lab Dip approval, factory will ready to manufacture the fabric of a particular order. The merchandiser will booking how much fabrics he need to prepare sample and how much for production. Calculation the fabric consumption given below:

Say: Fabric type 1oo% cotton single jersey

Fabric weight – 140 GSM

Body length – 76 cm

Body width – 120 cm

Sleeve length – 26 cm

Sleeve rolling – 3 cm

Bottom rolling – 3 cm

Neck length – 42 cm

Neck width – 5 cm

Processes loss – 10% (Fabric)

Processes loss – 5% (Neck rib)

We know that,

Fabric length = Given length + allowance + Bottom rolling

= 76 cm + 1 cm + 3 cm

= 80 cm

Fabric width = Given width + allowance

=120 cm + 2 cm + 2 cm

=124 cm

Sleeve length = Given length + allowance + Sleeve rolling

= 26 cm + 1 cm + 3 cm

= 30 cm

Total fabric length = (80 cm + 30 cm)

= 110 cm

FORMULA = (Length x Width – 10000 x GSM – 1000) + 10%

= (110 cm x 124 cm – 10000 x 140 – 1000) + 10%

= 0.210056 kg/piece

= 0.210056 kg x 12

= 2.52 kg/dz

Neck length = Given length + allowance

= 42 cm + 2 cm

= 44 cm

Neck width = Given width + allowance

= 5 cm + 2cm

= 7cm

FORMULA = (Length x Width – 10000 x GSM – 1000) + 5%

= (44 cm x 7 cm – 10000 x 150 – 1000) + 5% (GSM = 150)

= 0.004851 kg/piece

= 0.004851 x 12

= 0.058212 kg/dz

3.4 Calculation the costing of a basic T – shirt

In the price quote stage merchandiser makes the price of the unit price of an order. This price quote is prepared by the consultation of their buyer and it can be changed one or two times. Calculation the costing of a basic T – shirt given below:

Say, Single jersey = $ 4.00/kg

Neck rib = $ 4.50/kg

Cost of manufacture(C M) = $5.00

Trims = $ 4.00

Commercial = $ 4.00

Body fabric consumption = 2.52 kg/dz x $4.00 = $10.08

Neck rib consumption = 0.058 kg/dz x $4.50 = $ 0.26

Cost of manufacturing (CM) = $ 5.00

Trims = $ 4.00

Commercial = $ 4.00

————————————————————–

Total Cost = $23.34/dz

4.1 Financial position of Cottonfield(CFL) with other factory

Bangladesh is the 12^th largest garments manufacturing nation in the world. The garments sector is divided into the textile and the readymade garments (RMG) segments. The textile segment is sub-divided into a number of activities, which include spinning, weaving, and fabric processing; and the RMG segment includes knitwear and woven items.

Cottonfield is one of the prominent third generation factory in RMG sector. Now I try to comparison the financial wealth of Cottonfield with other three factories. Those are:

Delta

Keya

Radiance

4.1.1 Authorized capital of Cottonfield Vs others factory

BDT in million)