Professional Documents
Culture Documents
Internship Project Report of Merchandising PDF
Internship Project Report of Merchandising PDF
SALEM
NAME: NIVEDHA. M
DEPT: B.TECH / FASHION TECHNOLOGY
YEAR: FINAL YEAR
TITLE: THE STUDY OF MARKETING & MERCHANDISING
ACKNOWLEDGEMENT
Regards,
NIVEDHA. M
COMPANY PROFILE:
SPECIALIZATION:
Woven - It covers men’s & boy’s shirts, Casuals men’s shirts,Formals, ladies &
girls dress.
Knits - The product range covers Polo T- shirts, crew neckT-shirts, Jackets,
sportswear, and sleep wear, etc.
SHAHI EXPORT PRIVATE LIMITED, one of the most renowned names in the
world of garment industry, speaks of its tremendous success and expansion over 50
times within 30 years of its establishment, being established in the year 1974, in
Delhi.
It is expended by 60 times 38 years with annual turnover of 1250 crore and around
42000 employees spread over 27 locations, it has manufacturing units in six
different states of India via,Delhi, Haryana, Uttar Pradesh,Tamil Nadu, Karnataka
and Andhra Pradesh which became largest manufacturer/exporter of ready–to–
wear garments.
Imbibing with the best technologies of the day Shahi is an ISO 9000 certified
factory while the knits unit works in compliance with SA8000: 2001. Having an
open mind to cope with the business needs, it has implemented different
workshops for productivity improvement like 5S, Kaizen, Single Piece Flow & 6
Sigma Policy, 10 Commandments, GSD and has created its own place in this ever-
demanding market.
With its strict commitment to shipment date and production of supreme quality
goods it is having strategic alliance with leading processing houses in yarn as well
as fabric dyeing/finishing thereby getting consistency in quality, commitment in
delivery & the best price.
The factory has a production capacity of 2.5 million pieces per month.
The manufacturing activities at Bangalore were started in the year 1989 and the
Knit Division started during 2001.
There are different strategic business units in Shahi exports which are as follows:
There are various units in Bangalore handling woven garments and knitted
garments
Unit No.12 belongs to Knit Division and Unit no.7 belongs to Women Division.
All the activities of Women Division in Bangalore, Corporate HR of women and
Organisation Development-Corporate HR of Knits at Bangalore and Tirupur are
coordinated from the main office Unit-7 at Belandur Gate, Sarjapur Main
Road,Bangalore-5600102.
SHAHI extended its operations in Bangalore by 1st July 1988 with 250 associates
and 104 machines whereas the functioning of Knit Division as a separate entity on
23rd august 2001.
VISION:
QUALITY POLICY:
QUALITY OBJECTIVES:
CORPORATE VALUES:
(3) In sharing the fruit of growth and prosperity with its partners (employees)
(4) The company firmly believes that team spirit is the Hallmark of Success
Shahi Awards
The biggest plant of Knit Division is Unit-12 and the activities of all Knit Division
are monitored from Unit no.12 and the functioning of Knit Division differently
started on 23rd August 2001, ShahiExports Knit Division consists of Unit 11, 12,
14, 20, 22, 26 and 30. All knits division is having capacity of manufacturing
3million pcs/month.
Around 12,000 tons of fabric is being sourced per month for manufacturing the
pieces.
These are total approximately buyers,40 are the regular buyers every season in
which 60 % are USA buyers and 40 % are UK buyers, Shahi is fetching the major
business from below buyers, among that 30 % of Shahi knits business is from
Tommy and Kohl’s
Apart from this, Unit “Shivamoga” which has been located 250kms from Unit 12
has started its production activities recently. Salient feature of this unit is up to 5
million pcs/month can be executed.
CUSTOMER BASE:
Shahi Exports Pvt Ltd, has customers who are the leading shopping chains, with
head officers at Europe and USA, where as their retails outlets are spread over the
world .The uniqueness with versatility and competitive prices are the demanding
factors.
Success of a business depends entirely on the understanding the buyer’s needs &
satisfying the same fully. Infrastructure, plant & machinery, expertise of highly
skilled & qualified professionals & commitment to quality have earned it a high
degree of trust to its valuable buyers.
USA Europe
Walmart Kaufhof
Hollister Colmar
PP&C (
includes Plan & Bulletin to
R&D and respective departments
Customer
IED)
Specif ications
CUSTOM ER
Men, Movex,
mails, Equipmens INVENTORY
Customer
PP&C Bulletin Standards
Men, Movex,
mails, Equipmens CUTTING QA / QC
Men, Movex,
mails, machines, FINISHING &
Equipmens FGW
Product
Given by PP&C
OUT
Garments SOURCING -
GARMENT
FORM
MAILING POLICIES:
Legal Requirements:
Security Policy:
Personal belongings
Personal Vehicle
5S PRINCIPLES:
The 5S System consists of 5 activities with names that begin with ‘S’:
Sort involves sorting through the contents of the area & removing unnecessary
items.
Set in Order involves arranging necessary items for easy & efficient access &
keeping them that way.
Shine involves cleaning everything, keeping it clean, & using cleaning as a way
to ensure that your area & equipment is maintained as it should be.
Standardize involves creating guidelines for keeping the area organized,
orderly, & clean, & making the standards visual & obvious.
5S SYSTEM:
Equipment
Maintainence
Quality Safety
5S
SYSTEM
Inventory
WorkEfficiency
Level
Production
Quality
SIX SIGMA:
Six sigma seeks to identify and remove the causes of defects and errors in
manufacturing and / or service delivery and business processes. It uses a set of
management methods, including statistical methods, and creates a dedicated
infrastructure of people within the organization who are experts in these
methods. Six sigma aims to deliver “Breakthrough Performance Improvement”
from current levels in business and customer relevant operational and
performance measures.
Each six sigma project carried out within an organization follows a defined
sequence of steps and has quantified financial targets ( revenue increase, cost
reduction or profit increase).
HISTORICAL BACKGROUND:
Features that differentiate six sigma apart from previous quality improvement
initiatives include-
These all wastes make the organization slow, inefficient and uncompetitive.
Lean methods help to remove/ reduce waste and contributes to driving “
Business agility “ through smooth work flow across the organizations resulting
in rapid fulfillment of customer needs in an optimum manner.
Market concerned with the investigation and measurement market demand. By the
market study we can study the present and future customers. It includes the study
of following
Size of market
Customer’s needs and motive
Degree of competition
Selling activities
Details of the customers as to their income and
Dealer’s preference
Good quality produce at accepted price get the place in the market good quality
product which catch the wide market area.
Increase in the demand of the product; increase the sales of the product.
Competition also affects the sales of the product.
In order to capture the market we have to produce the product in such a manner
it should satisfy the customer needs.
It is necessary to make the product get attracted by the customer through
advertisement at right time.
Engage the
Find out what Develop whole company Achieve
customer products to in efforts to company
need meet those satisfy goals
needs customers
Customer relationship
Customer life time value
Customer share
Target of marketing
Customer database
Integrated marketing communication
Every employee is a marketer
Model – based decision making
INTRODUCTION FOR MERCHANDISING:
Merchandising denotes all the planned activities to execute and dispatch the
merchandise on time, taking into consideration of the Right Quantity, Right
Quality, Right Cost and Right Time to replenish the customer.
Apparel firms, whether large or small, must perform four basic functions in order
to be in business:
Marketing
Merchandising
Production
Operations / Finance
In a well-run apparel firm, the target market is the central focus of decision
making. Firms seek to produce lines of apparel that their target customers will buy
each season and each year.
Merchandising:
Product &
market
knowledge
Planning & Product
control development &
costing
Interface with
Interface with sales
manufacturer &
quality monitoring
Sourcing
Principle of Merchandising:
Estimating demand
Product development
Estimating demand:
It includes the study of target market through surveys. Information about age, sex,
life style, occupation, disposable income, personal choice, etc. is collected.
Product development:
Qualities of a buyer:
Independent Thinking
Creativity
Sensitiveness
Confident
Flexibility
Leader & Team Builder
Good Communicator
Dedicated Worker
Disciplined Worker
Types of Merchandising:
Fashion Merchandising
Buyer Merchandising
Vendor / Wholesale Merchandising
Retail Merchandising
Visual Merchandising
Buyer Merchandising:
It involves the process of co-ordinating with buyers and interface with the design
and production departments. Activities range from product development, getting
approval, sourcing of material and order execution of a confirmed order.
Functions of Buyer Merchandising:
Communicate with Buyer regarding orders
Develop Samples / Counter samples as per requirement
Quote – cost / price
Get sample approvals – regarding fabrics/fittings/shade/trim/,etc
Prepare schedule for order execution
Source Fabric/ Trim/ Accessories etc
Production Interface
Perform Lab tests and Quality checks
Documentation
Dispatch and delivery
Merchandising Functions:
Buying:
Determining needs
Finding a seller or seeking out source of supply
Negotiation price and other terms
Transfer of title
Payment or arranging for credit
Buying is an important function and occupies much of the time. The ultimate
purpose of buying is to bring commodities together where they are wanted for
immediate use in production or in personal consumption.
Assembling:
Putting together of goods to secure larger lots of shipment, which is used for sale
or for manufactures.
Grading:
Grading is assorting of goods into lots which is approximately in variety, size and
quality. Grading based on size, color and appearances.
Branding:
Advertisement:
Sorting or Warehousing:
Creation of time utility (proper place so as the product does not get dusted).
Packing: Wrapping and creating necessary for the transport or storage of goods.
SHAHI EXPORTS
VICE PRESIDENT
SENIOR EXECUTIVE
EXECUTIVE
TOMMY HILIFIGER – USA
Merchandising
Sampling Bulk
SAMPLING:
Development:Initially the buyer gives the tech pack, and need to develop the
same sample with their requirement and their needs.
R&D : When the requirement is given, first it should be checked for the feasibility
to run the production.
At first, the proto sample must be developed on that particular style. It should be
developed with the costing for that particular sample.
Once the costing is approved for the developed sample, the merchant receives the
receipt of order for the particular sample.
Then the FIT Sample should be developed to send to the buyer. The size of the fit
sample is MEDIUM (M).
When the fit sample satisfies the buyer, PP (Pre-Production) Sample should be
made with actual fabric, trims, style, etc. the size is of MEDIUM(M). Three
samples should be sent.
BULK:
Once turning to the bulk production, the Size Set sample should be sent to the
buyer from XS to XXL each with two pieces.
Bulk cutting is done on the PCD (Planned Cutting Date).PCD is made after 15
days from the date of file release.
When the bulk lot runs, GPT (Garment Package Testing) is done.
Proto Sample:
To know the feasibility of the style and to have a look on that particular
style.Should be made with Medium (M) size.
Requirement: Actual fabric in actual color and the trims optional that is Buttons,
Labels, zippers that are available.
Fit Sample:
To know the fit of the garment in dress form or in model.Should be made with
Medium (M) size.
Requirement: actual quality of the fabric with the correct GSM. The color of the
fabric and the trims can be used of available.
PP Sample:
To know the final look of the sample and to ensure the correct fabric and trims
were used.Should be made with Medium (M) size.
Requirement: Actual fabric, Actual GSM, Actual color, Actual trims. It excludes
the packing materials.
Size-Set Samples:
To know the fit of the samples in each size. Two pieces of each size should be sent
to the buyer for approving.
Requirement: Actual fabric, Actual GSM, Actual color, Actual trims. It excludes
the packing materials.
TOP Sample:
It is made to know the output of the bulk. TOP means the first sample coming out
the bulk production.
Requirement: Actual fabric, Actual GSM, Actual color, Actual trims, Actual
packing materials.
Fabric requirement:
Lab dip: To develop this lab dip, color standard should be given to the sourcing
team, they make a fabric swatch of different color ratios.Initially they make
around four different ratios. These color ratios were sent to the buying house for
getting approval on the particular shade. Once the shade gets approved over
particular ratio, bulk roll should be made on that same shade and it should be
checked with the merchant for the approval. When it get approved by the
merchant, the bulk fabric is In-housed for the production.
With all approvals the file should be released for the production department. The
file contains the following details:
SA REQUEST:
In shipment mode it differs by Sea or Air Collect or Air PP. Air Pre-Paid (PP) is
the process where the Vendor pays the amount for the goods transaction. SA
received helps to plan the Vessel for Shipment.
After this request shipment booking chart has to be made. It is used to book the
vessel(Ship) for transporting goods. The SA Number plays a major role here. It
contains other details such as Po number, Style Name its number, Color Code its
Number, FOB, Delivery Date, etc.
SOFTWARE DETAILS:
Normally SHAHI deals with two software’s namely CRM and M3. M3 is Make,
Move, and Maintain. CRM is used for making indent to the sample.
Once the request comes from the buyer, we do the sample according to that. For
this we need to give request to the sampling team by request form through On-line.
For the sample we can make around 7 samples according to the requirement.
While making the indent we get a Sample Request Number, then the requirement
should be finished with different aspects in the request form.
After this request a hard copy is given to the sampling team with the swatches of
fabric that we need to used and the trims that require for making sample.
COSTING:
Costing starts over with the initial cutting process. A certain percentage is
allocated for all the processes like Yarn Cost, Knitting, Compacting, Dyeing, etc.
In costing it includes all the cost of labour, cost of material and cost of
expenditure. These are the Direct Cost that is paid by the organisation.
Overheads are the expenditure done by the organisation which is the Indirect Cost
of labour, material.
The Profit margin is kept maximum to the minimal quantity and minimum to the
maximal quantity.
CMT plays a vital role in Costing that is Cut, Make, Trim cost.
Target = (No. of Operators X Total Working minutes per day X Efficiency) / SAM
Cost = (No. of days X No. of operators X Cumulative labour charge per day)
Order Quantity
Workforce planning
Recruitment
Skills management
Training and development
Personal administrative
Compensation in wage or salary
Time management
Employee engagement activities
Personal cost planning
CENTRAL IED DEPARTMENT
The IED department has to work with many other departments as this department
gives the entire idea of the garment construction and the thread and trims
consumption criteria,operations skill level categorization and other related aspects.
Hence they play a vital role in determining the cost of producing a single piece of
the garment and they also calculated the cost of that particular style of garment.
Central IED:
Then again as per the order quantity,run time of each garment is decided and
cost/minute of each garment is decided. It is calculated by Total Cost/Total
Minute. Similarly cost per minute of cutting and finishing is also set. Apart from
this costing for Embroidery, Printing and Washing is obtained from the respective
departments and then added to the cost sheet. Then these Cost details were
forwardedto the merchant, who will quote the price to the buyer. All these
activities are done before order confirmation.
Once the merchant gets the confirmation, the merchant will again send back the
samples for cross checking the operation bulletin with the garments & if any
changes are to be made, then it’s done in the OB.
Again for the third time, during the running of size set, the sample will come to the
R&D department, this time the operation bulletin will be converted into layout
type according to the line layout( all the details for example what machines should
be there) this OB is given to the concerned IE department.
Washing:
From Biting the cut components enter into the washing department. The recipe
sheet gives all details about the process of washing that is like Time, Temperature,
Chemical that is used, etc. After the washing process, hydronizing is done to wring
the water, then the components were sent to the dryer for drying. When the
process is completed, they dispatch the fabric in the shelf which is arranged
according to the floor wise.
Embroidery Section:
Sequins Department:
Printing Department:
Printing has two types, Manual and Automatic. Printing is done by 100% screen
technology. When a style is given to the printing team, they first develop a screen
which is known as Screen Making. After this the Screen Exposing is done, it is of
PhotoEmbellishment Coating. Then the process goes on with Screen Dyeing. The
next one is Color Making. Now it is ready to print on the sample and it is sent to
the respective Merchandiser.
While exposing, different screens were used to make different colours. The films
were used to make the design. To expose the design Photo Coating is done. The
screen is generally made by Polyester Mesh or Nylon Mesh. Generally one screen
costs around Rs. 100. The Rib fabric is very difficult to print.
Production Department:
Here they use the Bundle System for carrying the components. According to the
combo ratio, the bundles were issued. There is a sequence of operation done in
making a Polo T-shirt of Tommy Hilfiger Brand.
Rib attach
Collar finishing
Bottom hem
Inspecting
Side seam
Label attaching over the side seam like Time Label, Size Label, Security tag.
Button attaching
Checking
Ironing
Packing
FINISHING:
When all the process was completed in the production the garments were sent to
the finishing department for checking. Here the inspection takes place and the
quality audit is done with the garments.
In the batch process, they check the fabric Quality by the formula,
TESTING DETAILS:
Generally Two tests were done to both the fabric and the garment. It is of,
SEPL Test:
It is a internal test done by the Shahi Exports Private Limited. It checks various
properties over the fabric or garment given. Applicable in all Yarn Dyed and
Printed ones.
Test properties:
5. Negligible
4. Slight
3. Noticeable
2. Considerable
1. Severe
SGS Tests:
It mainly checks the property of Color fastness to Light. Then the Fibre Content of
the Fabric is checked, mainly the ratio percentage mixed over the fibre. Then the
property of Pilling is checked.
PDS:
PDS is a Product Structure, were it is mainly used for the purpose of Cost Sheet
Locking.
Bitting
Drying
Cutting
Sewing
Finishing
CONCLUSION: