Product Cycle

 Research - Research is carried out on consumers to understand the current trend

 Development Stage – A product sample is sent to the buyer for feedback
 Fabric Development – Develops fabric by outsourcing both locally and abroad
 Color Selection – Suitable color is applied to the product using specific color code
 Pricing & Costing – Manufacturing & Costing department set the price depending on the
material, labor and overhead
 Supplier Order – After sample is selected by buyers, supplier deliver in bulk

Product Layout

MB Knits Fashion is a manufacturer & exporter company. They have their floor layout for production.
Now, we’ll describe about their floor layout.

Section 1: At first, they unload the raw material from truck and storage they select the sample of product
in sample selection area. Then sent that sample for inspection to inspection room. After that Executive
Directors, General Manager and Marketing Manager check the product sample and approve it. On that
floor layout, there is a waiting room and commercial room for business meeting. And the Chairman room,
IT room and HR room also there. A small store is also situated on that floor.
Section 2: In this section, there was sewing floor and store utility for the selected sample. Sewing
floor where they analysis the product & set up target for Line, then set up machine layout on the
basis of target per hour production, balancing the line, bundle the input to line, after that they
sewing and check quality online, then again end line quality check, lastly body sends to finishing
section. After finishing section, they store and send it to the next floor.

PP Meeting

Document
Inline Inspection
Report
Cut Pannel
Board on 7 Pcs
Measurement
System

Received Cut Panel Start Production Out Put/ End Line

Inspection 100%

Inventory
Critical Process Delivery To End
Check 1005 Finishing

Section 3: In this section they have the iron area, Poly Table and Packaging. After the iron, they check the
quality of the product for final confirmation. After check the product they send it to the poly table area,
Where they poly individual product with size and color. After that they send for the packing area to pack
them into specific quantity in the box. Then send it to finished goods area after all the process done on
that floor. Then they shifted the finished goods on the 6th floor.
Section 4: In this section, they have dining area for their employees and a prayer room. On the other
side there was a proposed finished goods store area and a female washroom.
 Application of Production and Operations Management Concepts

We are working on a garment factory named MB knit. It is a one of the oldest Garments Factory in

Bangladesh. They started their journey in 1992. Today, Mb knit is a name of successful garment in

Bangladesh. Being a renowned Company there are several reasons. MB knit maintain their quality

always, they deliver their order on time to their supplier or customer, less default in production on

average, fulfil worker demand on time. This are such things which brings success to the MB knit. all the

credit must go to the production team first because they maintain the input to output process. There are

many relevant aspects which make them one of the leading garments factory. Taking competitive

advantage has played a huge role behind a successful company. Competitive advantage is a process of

taking the competitor market share into their own company. MB Knit always take good strategic step on

it.

Competitive advantage and Strategy:

Beating the competitor is very hard in garment sectors because its already a highly competitive
market. More than three thousand garments factory is administrating in our country. So, MB
always have to take measurable steps on their forecasting, strategy, production and many more
important aspects which will help them to reduce the cost and create good will into this sector
also which help them to create competitive advantage. After all, above they focus on five thing
which made them different in market which are:

1. Production: At first, we discuss about the production with Managing director and he told us they
always try to maintain their lead time and also want to complete their order before 1 week. MB knit
always try to decries the amount of default product. They usually take smart step on it. Manager told us
that generally 3-5% default has been conduct in 1,00,000 (100%) pieces t shirt. Their general report and
experience figured the number out. What they do it they always planned to make 105% product or
1,05,000 products. They make 5% extra product just because of maintain their good will. If their
customer gets default product from them, customer will move on to the other garment. Losing customer
mean losing business and getting out from the market and loyal customer means more competitive
advantage. MB knit always spend on extra production to maintain their competitive advantage

2. Cost: As much as company can reduce their costing, they can earn more revenue. More revenue gives
strong position in market which give a company competitive advantage. Managing director gave us the
example of an operational steps which reduce their cost. In the knitting section, they had lot of wastage
which they call just. They bought a machine from japan which converted this just to the heat. They use
this heat in their iron department to iron the order. They said that they save a huge amount of electricity
cost by using this machine.

3. Location: The garments itself located in Narayanganj. It’s very near to the capital city. since they get
so many orders from capital, their location in a perfect place. We went to visit the factory. It took only
hour to reach their garment from Dhaka Rampur. They need less time to deliver their product which is
easy to satisfy their supplier.

4. Quality: The company always prioritize the quality of the product. We get very clear idea about their
working process on quality. The manager said that ‘quality can bring them to the top of the market and it
can through them to the ground’, just the matter of good and bad”. That is why they don’t compromise
the quality of the product. They have one or two quality managers in every department. Manager
continuously monitor the work in process.

5. Quick response: Based on the order portion they deliver their product to the customer. The lead time
of MB knit is way less than other garments which help them to defeat competitive and gain the
competitive advantage. Manager gave us brief of their lead time of making 1,00,000-piece pant. They
deliver it within 60 days. It’s quite impossible to most of the garments to produce that much quantity
products within 60 days. This is why customer of MB knit are happy for the quick response which help
them to take competitive advantage.

Analysis of Demand Forecast

Forecasting is mandatory in any kind of production business as it helps to produce according to
the demand. The right forecasting system or result leads to less waste and more profit. So, the
forecasting methods that MB Knit Fashion Limited uses are:

Trend: There are some regular buyers whose demands are always common so in this case MB
Knit Fashion Limited forecast according to that trend

Perio
Demand Demand Forecast
d
2014 9000000 16000000 15000000

2015 9900000 14000000

11700000 11000000
12000000 10000000
2016 11700000 9900000
9000000
10000000
Demand

2017 10000000 8000000

2018 11000000 6000000
2019 15000000 4000000
2000000
0
2013 2014 2015 2016 2017 2018 2019 2020
Period

Ft = MAn= At-n + … At-2 + At-1 /n

F2020=10000000 +11000000+15000000/ 3 = 12000000

Description:

In the interview, we found out MB knit relay on their capacity of production and based on that they take
order. So, their capacity is 10 lakh pieces products in a month so a year 12000000 Pisces and we assumed
the demand and found out the 2020 demand forecast.

Cycle: Most of the production is cycle based there are some buyers who wants the products after 60/90
days so MB Knit Fashion Limited know that demand and lead time and produce according to that.