INDUSTRIAL TOUR REPORT

ON
KDS GARMENTS INDUSTRY LIMITED

DEPARTMENT OF MANAGEMENT STUDIES

UNIVERSITY OF CHITTAGONG
18 SEPTEMBER 2007

Submitted To
Mr. Mohammad Shahab Uddin
Lecturer,
Dept. of Management Studies,
University of Chittagong

Submitted By
S.M. Abu Yousuf
4th year B.B.A (Hons.)
Exam. Roll: 2002\80
Class Roll: 4002 Reg no:-2401
Dept. of Management Studies
University of Chittagong

LETTER OF
SUBMISSION
Dated: 18 September 2007
To
Mr. Mohammad Shahab Uddin
Lecturer
Department of Management Studies.
University of Chittagong.

Subject: Submission of Industrial Tour report on KDS Garments

Division Ltd (Production)
Sir,
With the greatest pleasure, I would like to submit my report on KDS Garments Division
Ltd (Production)
I have tried my best to gain practical experience and also tried to reflect the same in report
with my limited scope and knowledge. I have prepared the report on the basis of collected
data. I wish your hearty consideration, if there is any deviation in my report.
I wish to thank for your friendly co-ordination to make the program success.

Yours truly,
S.M. Abu Yousuf
4th year B.B.A (Hons.)
Exam. Roll: 2002\80
Class Roll: 4002 Reg no: -2401
Dept. of Management Studies
3

University of Chittagong

PREFACE

Industrial Tour Report is one of the most important topics of our 4 th year B.B.A.
course. Now the world is competitive. So we have to earn the knowledge about the critical
environment of business. This type of industrial tour report helps the student to acquire
practical knowledge about the modern business organization. It will also help the student to
be an effective manager in future. Different organizations take different kind of policies to
operate their business.

As a student of 4th year B.B.A. (Management) student of Chittagong University, I

have been assigned to prepare the industrial tour report on KDS garments Division ltd. I
have tried my best with all my ability to complete this report with perfection.

ACKNOWLEDGEMENT

I own my heartiest gratitude to all who have sincerely and constructively assisted
me in preparing this report in a befitting manner. I would especially like to extend thanks
to my reverend teacher Mr. Mohammad Shahab Uddin (lecturer), Department of
Management Studies, University of Chittagong for his sublime guidelines, valuable
insights and suggestions regarding the preparation of the report and he completion of
tour paper.

I am very much grateful to Showkat Anwar(Production Manager)

permission for involvement at KDS Garments Ltd.

to give

I am also thankful to my friends who assisted me by providing sufficient data on

this topic and my group members who have shown keen interest and constant source of
inspiration to make my tour paper as a success.

OBJECTIVES OF THE STUDY

The main objective of the study is to evaluate the production, marketing,
accounting, financial principles as well s overall performance of the KDS Garments Ltd.
More specifically, the study covers the following objectives.

To know about KDS Garments Ltd.

To have an idea about their production performance

To attain information about their marketing policies and practices

To gather information about their financial condition

To measure their productivity;

To measure the impact of productivity on the performance measured

through profitability;

To determine the KDSs contribution to national exchequer for the

period under study;
6

To evaluate the role of KDS garments production division.

SCOPE AND METHODOLOGY OF THE STUDY

The scope of the study was confined to only one sample enterprise
KDS Garments ltd. The methodology followed for the purpose of the study
has been desk research as well as field survey. The desk research method
has been followed to review the existing literature on the subject. Both
primary and secondary data were collected with the help of a
questionnaire prepared in the light of the study objectives.

The main sources of the primary data had been the concerned
personnel of the KDS Garments Ltd. Secondary data were collected from
the web sight of the organization.

LIMITATIONS OF THE STUDY

The study has been conducted subject to certain limitations. Time
constraint is one of the major limitations. I have been allowed only one day
for the industrial tour, which is not enough to study and industry in
depth.

In addition to the above, our sample enterprise is a private limited

company, which does not make its annual report and also does not
provide us with all the necessary information as required due to their
sensitivity and competitiveness in regard to its competitors. In spite of
these limitations, I have tried my best to pinpoint various finding and to
provide

he

students

and

researchers

of

tomorrow

with

valuable

information.

TABLE OF CONTENTS
PARTICULARS
Page no.
1. Introduction

10

2. A profile of KDS Garments industry ltd

11

3. KDS garments industry ltd at a glance

13

4.Basic corporate structure

14

5. Production of KDS garments division

15

6. Lay out

16

7. Major buyers of KDS Garments

18

8.Problems of production

18

9. Washing division

19

10.Per day production

20

11. Operation process

21

12. Capacity level

22

13. Recommendation

23

14. Conclusion

24

INTRODUCTION

10

Garments sector is one of the important export sectors of our country. Today readymade
garments sector not only earn maximum foreign currency but also engage a lot of
unemployed people in productive industry. For this industry, various bank and
insurance business are now in better position, transportation business now expanded in
the country, shipping business is increasing inside and outside the country, cargo
handling, clearing and forwarding business, buying house, hotel, tourist all this
sectors found possibility of their business by this readymade garments export. There
are more than 18 lucks people engaged in this sector. So their purchasing power
increases and a group of consumer also created by this sector. More than 8 lucks
people are engaged in different accessories industry to earn their money. As a result
our unemployment reduces beside our socio-economic position also developed. It is
true that, for bright future of Bangladesh the contribution of this sector cannot be
neglected. But now a days there are some internal socio- political problem and for
international depression there is a possibility to reduce our export. We have to
carefully assess our internal problem and try to overcome this problem as early as
possible. Otherwise we will fail to attract foreign buyers for export from our country.
Before 2005 multi fiber agreement (MFA) limit us specific export but after 2005 our
export increases in different new country including previous country. If we want
development of Bangladesh and to survive this industry in long run, our position and
opposition party must work together to continue this industry. For developing this
industry we have to look our labor who are always neglected. Labor are the key of this
industry. So we have to give them sufficient salary and other benefit for their well
living. Backward linkage industry, bonded warehouse facility, garments village must
be established for smooth export.76% of Bangladeshs total export income earn
through RMG. Now Bangladeshis is in the 7Th position in EU, in exporting readymade garments (RMG). This is the appropriate time for solve problem and capture
foreign market otherwise we cannot increase our market share for readymade
garments.
The following report is prepared on KDS garments ltd, which are locally invested
garments. The main objective of the study is to evaluate the production, marketing,
accounting, and financial principles as well s overall performance of the KDS garments ltd.

11

A profile of KDS garments industries ltd.

Historical background of KDS group and KDS success story:
The potentiality of the readymade garment manufacturing industry was first brought to
light in the late 70s. The country being in its primary stage, having independence for only a
few years was in a rather vulnerable situation as for as international trade was concerned.
Thus, it was mainly with the perseverance of the few entrepreneurs, who visualized the
future of garment industry: the path of the industry was laid in Bangladesh. One of those
visionaries was Mr. Khalilur Rahman , the founder of KDS group.
Mr. Rahman set up one of the first garment-manufacturing units in Bangladesh; KDS
garment industry ltd. on September 11, 1983. 300 men and women on one single floor
worked eagerly to build a future together. Since then, KDS never stopped growing.
Numerous struggles and hurdles had to be toppled before the company started taking shape
to its present size and structure.
By, 1990 KDS had a total of 8 manufacturing floors where more than 7000 men and
women worked to export knit and woven items, mainly to USA, with the growing
difficulties faced with the import of almost 100% of the raw material, KDS set up its
accessories plant KDS packaging industry ltd., in a location just 5 minutes away from the
mother plant. Following that a services of accessories manufacturing units were set up in
the same location to support the mother industry and soon it farmed on independent
operational division, the KDS accessories division.

Apart from the accessories, KDS established its own washing, quilting and embroidery
plants to meet its growing needs of the international market. Export of ready-made garment
is mainly to the USA. But KDS identified the different markets around the world. Export

12

grew in Europe and with it grew a new sector, the jacket manufacturing, now having it own
manufacturing floors.
The KDS textile mills was its latest ambition related to the mother Industry which is
gradually turning into a reality as its now due to go into production 1999. In 1995 KDS
explored a completely different field. The steel industry KIY steel mills limited were
established producing Galvanizerd CL sheet mainly consumed locally. With the immediate
result of KIY, the plant was expanded to double its original size by 1995.
KDS has been the proud recipient of many international awards and the national export
trophy each year since 1985.
KDS is a symbol of progress and advancement in the areana of garment export trade.
Combined efforts of its workers staff members and owners are the forces behind its unique
position of achievements today, KDS believes in quality and time, and highly emphasizes
in maintaining a concerted harmony in its working process and its environment.

13

KDS garment industry ltd at a glance

1. Name of the organization: KDS garment industry LTD.
2. Name of the chairman: Al-Haj Khalilur Rahman.
3. Location: 225, Nasirabad Industrial Area, Chittagong 4211, Bangladesh.
4. Communication media: Tel: 88031681240-04,Fax: 88031681398, Email:garment@kdsgroup.net,
Web site: www.kdsgroup.net.
5. Established: 11sep., 1983
6. Markets served: garments goods.
7. Total number of executive 862, workers 5299.
8. Quality standards: internationally approved.
9. Nature of business: manufacturer and 100% export of ready-made garment.
10. Export to USA, Germany, UK, France, and Spain markets.
11. Nature of ownership: private ltd co.
12. Board of directors: family members.
13. Pattern of leadership: tend to autocracy
14. Nature of employees: skilled, semi-skilled and un-skilled.
15. Good working condition for the employees working in this company.
16. Trade union: absent
17. Strategy: lower cost strategy in marketing niche.
18. Policy: productive.
19. Mode of transaction: By letter of credit.
20. Te company has the pleasant social activities to the society.

14

Basic corporate structure

Chairman

Managing Director

General Manager

Deputy General Manager

ACCOUNTS

Asstt. General Manager

CUTTING

MAINTENANCE

WASHING

Manager
HRD

ACCOUNTS

MERCHANDISI
NG

PRODUCTION

STORE

DEPUTY MANAGER
ACCOUNTS

HRD

COMMERCIAL

ASSTT. DY MANAGER

ACCOUNTS

STORE
SENIOR EXECUTIVE

JUNIOR EXECUTIVE

STAFF

WORKERS

15

PRODUCTION

Production of KDS garments division

There are six divisions in KDS garments. These are as follows:

1.
2.
3.
4.
5.
6.

Knit
Woven
Jacket
Washing
Embroidery
guiting

For first three divisions, the organ gram is given below (knit, woven, jacket):

Organogram
Manager

Assistant manager

Junior executive

Production officer

Executive

Management level of line

Line
Junior supervisor
Trainee

junior supervisor Supervisor

Production officer

Junior executive Executive

Operator
Helper

Assistant
operator

Junior operator

Operator

Lay out
Cutting

Process

16

Finishing

Cutting: Three parts in cutting option

1. Layer
2. Marking paper
3. Cutting

Process: 10 parts in process option

1. FRT & BK YUKE PSN TOP STC
2. FRT & BK YUKE PSN ATT AT FRT & BK
3. LOOP & ZIPP END TACK
3. CUT PKT MIDDLE PSN
4. MATCH FRONT & BK
5. JOINT SHOULDER
6. LABEL ATT PSN
7. PTN RIV ATT
8. ZIPP ATT AT FRONT
9. TOP STC AT CLR

Finishing: 4 parts in finishing option

1. Iron
2. Inspection
3. Folding
4. Packing
The products, which are produced in KDS garments, are given below:
1. Swim tank
2. Bonded felce
3. Cargo long pant
4. Cargo short pant
5. Long skirt
6. Short skirt
7. Jacket

The machines, which are used in production of KDS garments industry

ltd:
17

1. Single needle plain machine

2. Two needle plain machine
3. Over lock machine
4. Interlock machine
5. Bar tack machine
6. Flat lock machine
7. Bolton hole
8. Vale crow

The raw materials, which are used for production purposes, are as
follows:

70% fabric

Jip per: 1. Long jipper. 2.pocket jipper

Thread

Label: a) Main label.b) size label. c) Item label

Lining paper

Dice

Need l/c

The raw materials those are imported from the following countries:

Taiwan

Hong kong

Korea

China

Indonesia

India

Pakistan

Major buyers of KDS garments are as follows:

18

O trget

K-mart

Wal mart

Caldor

Montgomery word

Lolytogs

Lee

Jordache

JK peny

Fran show

Venture

Fila and so on.

Problems of production in KDS:

The major problems that are confronted by this company are given below

Machine problem

Raw materials problem

Workers problem

Workers unrest

Unskilled worker and manager

Sometimes government rules and regulations restrict normal production

operation

19

For washing division the organogram is given below:

Organogram
Manager

Assistant manager

Junior executive

Production officer

Executive

Management level of line

Line
Junior supervisor
Trainee

junior supervisor Supervisor

Production officer

Junior executive Executive

Operator
Helper

Assistant
operator

Junior operator

The materials that are utilized in washing operation:

Over dye

Sand blasting

Chemical blasting

Heavy destroy

Easy care finish

Teflon finish

Permanent scrunch

Tie die

20

Operator

Tie bleach

Tie wash

Moon/acid wash

Washing capacity: We have immense capacity to give support to our customers for
their voluminous orders. The average combined capacity ranks approximately from 30000
dozens to 50000 dozens per month.
The following table shows in each row the capacity of wash type if
the plant is fully engaged for that wash. Sand blasting and chemical blasting are
simultaneously possible with other types of washing.

PER DAY PRODUCTION (IN PCS)

BODY SIZE

VS

Garment/normal /rinse/
silicon/pigment
Enzyme (non denim)

64800

43200

25920

17280

43200

28800

17280

11520

Enzyme (denim)

28800

19200

11520

7680

Dark enzyme

21600

14400

8640

5760

Medium bleach

17280

11520

6912

4608

Upper bleach

14400

9600

5760

3840

Over dyeing simple

64800

43200

25920

17280

Over dyeing -heavy

43200

28800

17280

11520

Sand blasting per 2 spots

7000

5000

4000

3000

Chemical blasting

11000

8800

6600

4400

Whisker- per 2 sets

14400

9600

6000

4800

21

Operation process:
Receiving garments

Sand blast
Counting and
delivery

Pre-wash cheking &

sorting
Post wash quality
check

Chem. Blast

Washing

Over dye

Others

22

Drying

Capacity label at each division of KDS garments ltd:

Knit:
Capacity: 80000 dozens per month
Percentage of business: 80% USA, 20% for EEC.
Set up: vertical.
Quota strength: highest quota holder in Bangladesh in 638/9,338/9
Quality level: maintain average quality level 2.5
Woven:
Capacity: 20000dozen per month
Percentage of business: 70% for USA, 30% for EEC
Quota strength: category 341/ 100000dozen
Category 340/50000 dozen
Quality level: maintain AQL 3.5
Jacket:
Capacity: 60000 pieces per month
Percentage of business: 100% for Europe Canada

Washing capacity: We have immense capacity to give support to our customers for
their voluminous orders. The average combined capacity ranks approximately from 30000
dozens to 50000 dozens per month.
Embroider: software for design wilcom
Machines- TAJIMA 2
BARUDA-1
Measuring unit- per 12000 stitches
Capacity: 6 threads with different color at the same time
20 lines in each machine
650 stitches per minute
Production capacity: 15 million stitches per month /180 million per year.

23

Recommendations:

On the basis of findings of the study, I would like to recommend the followings:
1. KDS garments is supposed to arrange some training program to improve the
efficiency of the helpers & operators.
2. Company be capable of arrange half yearly get together to improve the relationship
between the Management & workers.
3. Customer service can be improved. For this purpose management can arrange
yearly get together with the consumers (Buyers).
4. The Company must have to appoint at least medium educated & Skill person.
5. The Company can develop the advertising promotion.
6. The salary system should be well structured regarding the job responsibilities.
7. During the recruitment, the board should consider the academic discipline of the
candidates for the proposed positions.

24

CONCLUSION

At last, I can say that the management portion of all departments of KDS garments is
performing its job efficiently. In fact the all departments are most important equally to
increase the productivity by low cost and to maintain the well reputation. Beside the
executives are very industrious and serious in performing their jobs. Though there are also
some who are not much committed. The executives hardly try to achieve 1000% efficiency.
The organization is maintaining a high quality work environment in accordance with the
labor Act of Bangladesh. Workers get adequate wages and they get their wages timely. So
the workers are satisfied and there is no industrial dispute or labor unrest.
If the Company follows the recommendations made in this report, I believe that it can
overcome the present problem. And in the long run the company will be benefited and it
may become the market leader in near future.
There is no doubt that KDS garments has created a good reputation in the market by its
quality product and service. It should maintain the quality and try to diverse its business.

25