A TERM PAPER IN PRODUCTION

MANAGEMENT- A CASE STUDY

GROUP 5
NAME

ID

ROKSANA FERDOUS

M1516006

SUMAIYA AFROZ

M1516024

MAHBUBA-TUZ-ZOHRA

M1516034

ZAHARATUL MUNIR SARAH

M1516042

SHAKILA ALAM

M1516064

INTRODUCTION
The Textile Industries are playing an important role in Bangladeshs
economy for a long time which comprises a mix of small to large privately
and publicly owned companies. Exports of textiles and garments are the
principal source of foreign exchange earnings. Bangladesh is second only to
China, the world's second-largest apparel exporter of western brands. Sixty
percent of the export contracts of western brands are with European buyers
and about forty percent with American buyers. Only 5% of textile factories
are owned by foreign investors, with most of the production being
controlled by local investors. The industry employs nearly 4 million people,
mostly women, and more than ten million habitants are indirectly
associated with this industry. 78% of the countrys export earnings come
from textile apparels, according to the latest figures available.

OBJECTIVE OF THE STUDY

Broad objective:

To know about the production process of an appeal company.

Specific Objectives:

To know about the characteristics of the industry.

To know about the characteristics of Medler Appreals Limited.

To focus on the working process of each department of Medler Appreals

Limited.

To focus on the production process of each department of Medler

Appreals Limited.

To focus on the lacking areas of the companys production process.

CHARACTERISTICS OF THE INDUSTRY

Exports of textiles and garments are the principal source of foreign

exchange earnings.

Bangladesh is the second largest garment supplier of the world market,

after China.

This sector creates about 4.2 million employment opportunities and

contributes significantly to the GDP.

There are about 5,000 garment producing factories or more.

RMG of Bangladesh is powered by young, urbanizing, workers, where

most of them are women.

The industry is characterized by very low wages and dangerous working

conditions in the factories. Minimum wage is determined as 5,300 taka
(2014) (68 USD).

CHARACTERISTICS OF THE INDUSTRY

(CONT.)

Bangladeshi clothes and textiles enjoy duty free access to the EU which
is an investment incentive for many factory founders and traders.
Foreign investment comes mainly from China and South Korea.

Bangladesh needs around 3 billion yards of fabric a year for producing

garments. 85 to 90 percent of the needed fabric is imported from China
and other countries.

80% of Bangladeshs exports are garments and textiles. This creates a

large dependency on the export revenues.

Violation of labor law is significant in most factories.

DESCRIPTION OF THE LOCATION

Medlar Apparel is situated at Ashulia Savar, which is a sub-urban area. The

location of the factory contains certain benefits and costs such as-

Raw materials are dispatched from Chittagong port and delivered to the
factory by the large trucks. If the factory would locate in Dhaka, and these
trucks would enter in the city, it would have created a huge traffic jam and
eventually the delivery of materials would take a long time. Because of
locating in outside of the city, timely delivery of materials can be ensured.

Because of locating their factory in sub urban area, the company is getting
the advantage of having their own a large factory where it has its own staff
quarter for labors and other staffs. Because of living within the factory area,
staff can join work at appropriate time.

Labor cost is comparatively low and because of having accommodation labor

switching cost is comparatively low here.

Materials are brought from Dhaka and Chittagong port and to make them
delivered to the factory consist a high transportation cost

OPERATION AND DESIGN

Figure: Overall Production Process in Medlar Apparels Ltd

PRODUCTION PROCESS
Sampling section
Cutting section
Sewing section
Packaging section

ACTIVITIES OF SAMPLING UNIT

Receive design from buyer companies
CAD & pattern making as per style & measurement
Sample making
Approval from internal merchandiser.
Sending sample to the buyer
Approval

ACTIVITIES OF CUTTING UNIT

Grading of sample
Marker making
Fabric spreading
Cutting
Numbering
100% checking and part replacing
Sorting and bundling
Input to the sewing section

ACTIVITIES OF SEWING UNIT

Receiving cutting parts
Sewing input area
Quality control process
Sewing Output table (Q.C of 100% garments)
Washing/ non washing
Finishing

PERFORMANCE MEASUREMENT
SMV Formula = Basic time+ Allowance.
Here,
Basic Time =observed time*observed rating/standard rating

For production performance, Medlar Apparels use the following

formulas Individual Target=60/SMV
Line target=actual minutes/SMV
Here,
Actual Minutes= Machine Operators * Working hour*60*efficiency* Presents
%
Line Efficiency= Output*SMV / No of workers *Working Minutes

ENVIRONMENT AND SOCIAL

CONCERN

Medlar Apparels follows a standard working environment. The policy of the company is to ensure
the best possible industrial safety & to provide sanitation hygiene facilities to the employees.

The factor has its own medical center with available doctors.

There is adequate lighting inside & outside of the factory; security light works on off days as well.

The factory has a workers welfare committee to look after the interests of the employees. They put
forward proposals, suggestions; ventilate grievances & complaints.

The company strictly maintains national laws on working hours. Daily work-hours are 8 as
established by laws of the country and standard work week comprises 48 hours as established by
law. Daily Overtime involves 4 hours maximum. Salary is paid generally within the 7th of a month.

Fire drill is conducted once every month and is properly documented.Sufficient number of fire
extinguishers (around 72) is available on the floors to fire fight if fire breaks out in the floor. Fire
hose system is also installed to fight in case of fire hazard. The factory displays an elaborate
evacuation plan in each floor.

All exits are marked with appropriate color & signs to help quick exit of employees working in the
floor. Emergency exits are distinctively displayed. Adequate lighting is provided to illuminate
working area and workstations.

BENEFITS OF MEDLAR APPARELS LTD.

Medlar Apparels is a big factory and therefore, they need many

employees for their activities. For this reason, it helps to increases the
job opportunity for unemployed people and as well as to reduce the
unemployment of the country.

As they export the quality and good product to foreign country, many
buyers are now interested to place order in Medlar Apparels Ltd.
Eventually, they are contributing in making our countrys reputation.

And overall it helps to add a big contribution to our countries economy,

which helps a lot for any counties development.

PROLEMS FOUND AT MEDLAR

APPARELS LTD.

In the production process, most of the works are handled by the

employees only. There is no automation process involved in the
important segments of the production.

In cutting section, still the company cannot accomplish full automation.

Workers are working manually. As a result, production requires much
time.

Since workers work manually, maximum production is not achieved.

As Medlar Apparels Ltd is on sub urban area, sometimes it cannot get all
facilities when it is necessary

CONCLUSION
After analyzing their overall production process, we have found that
the company is using process layout that passes through the
sampling section, cutting section, sewing section and packaging
section. In each section, the company uses product layout. The
production of this company follows batch production and just in
time approach and it depends on their buyers orders. Overall, we
can conclude that, their production process is characterized by just
in time approach, batch production and process layout.

RECOMMENDATION
Need to place some automation to reduce the production time
and threat of workers life.
Need to place some advance technology to increase the
productivity.
Need to arrange some possible facilities in sub urban area to
develop their work.