Managing Business Operations

DG Fashions (pvt) Ltd.

Assignment No. 1

BBA: 2201

Course Coordinator: M.G.D.S.Samadi

Department of Management and Entrepreneurship

Faculty of Management and Finance

University of Ruhuna

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Certification

We hereby certify that the material presented in this report is original and no other

persons’ work or ideas have been used without acknowledgement.

Submission Date: 25/02/2015

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Acknowledgement

We are really grateful because we managed to complete our Operation

Management assignment within the time given by our Ms. M.G.D.S.Samadi.

This assignment cannot be completed without the effort and co-operation of our

group members, Dulakshi, Gayan Kithma, Madhini, Medha, Sabry & Raz. We

also sincerely thank our lecturer of Cost and Management Accounting BBA

2201, Ms. M.G.D.S.Samadi for guidance and encouragement in finishing this

course. Last but not least, we would like to express our gratitude to the financial

manager of DG fashions (pvt) Ltd and the staff for the support and willingness

to spend time with us and proving information.

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Table of Content

Chapter 1: Introduction

Nature of the organization……………………………………………...05

History of the Organization…………………………………………….05

Structure of the Organization…………………………………………..06

Main Product……………………………………………………………07

Quality Dimensions of the Product……………………………………..08

Main Suppliers, Buyers and Competitors ………………………………10

Awards and Certificates Obtained……………………………………...11

Chapter 2: Production Process

Stages of the Conversion Process ………………………………………12

Different jobs assigned to the conversion………………………………12

Layout of the Workstation……………………………………………...14

Layout of a work line………………………………………………..14

Product Development…………………………………………………..15

Chapter 3: Location of Facility

Grid Map of the Location ………………………………………………16

Factors Concerned With Locating the Facility…………………………16

Chapter 4: Role and Challenges Faced by Operation Management

Role of Operation Management………………………………………...17

Challenges Faced by Operation Management………………………….18

Conclusion………………………………………………………………….19

References…………………………………………………………………..20

Appendices……………………………………………………………….…20

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Chapter 1: Introduction

Nature of the organization

New D G Fashion Garment (Pvt) Ltd is located in Ashokarama Road Koondeniya

Dickwella, Sri Lanka. Company is working in Clothing and Accessories, Uniforms,

Textile business activities. DG Fashions enjoy high reputation among our business

partners and clients they are all satisfied with our products quality. They have our own

steady apparel processing factory, advanced equipment, high skilled work force and

first class quality management system.

Currently DG Fashions has more than 500 members in all departments and they

have their own state of art production facility. They have their own steady apparel

processing factory, advanced equipment, high skilled work force and first class quality

management system.

DG Fashions company takes the quality as the basis seeks development through

goodwill and sticks on the principle of providing products of high quality and low price

for internal clients. Due to high starting points they have decided to march into the

international market. To adjust to the customs & convention of different region of

country, the design department of the company design products of different styles to

satisfied the demand of different clients

History of the Organization

The monumental industry that is New DG Fashions wasn’t built in one day, but it

was certainly built by one man with a vision. Mr Amadoru, the great founder of the

brand DG Fashions, was driven at a young age to make a sounder livelihood for him

and his family. DG Fashions is an apparel Company which was established in early

1999 in Dickwella, Mathara, Sri Lanka. They have been dealing with the Manufacturing

of lady’s bra, night wears, skinners, lingerie and gents undergarments for over 12 years.

With the experience accumulated though the years, they are known as one of the most

reliable suppliers in Sri Lanka in the product range for its trend-lead styles, colour of

the season, fine quality and fast delivery. D.G. Fashions now run factories that produce

woven, men, and kids’ products. Their concept is to provide the best they can in terms

of product quality and price competition.

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Managing Director

Director

Internal Audit Audit Assitant

Operation Manager

Marketing Manager

Area Manager Sales Rep

Area manager Sales Rep

Area Manager Sales Rep

Area Manager Sales Rep

Area Manager Sales Rep

Speacial Customer Manager

Sales Rep

General Manager

Transport

Driver

Cordinator

Production

Machine Operator

Helpers

Supervisors

Quality

Supervisor

Quality Assistant

Cutting

Cutters

Supervisors

Helpers

HR HR Assistant

Purchasing Manager

Purchasing Officer

Purchasing Officer

Raw Material Stock

Manager

Staff

Helpers

Finished Good Storck

Manager

Staff

Helpers

Finance Manager

Accountant

Assitant

Cashier

Accountant

Assitant

Cashier

Structure of the Organization.

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Main Products

Normal Products Special orders

Vest

Gents Fashion Bug bra

Junior Fashion Bug ginger panty

Girls Fashion Bug bra

Panties Half lace

Ginger Side lace

Semina Comfy

Damsel Digny

Olga short Infinity

Olga high leg Fashion Bug vest

Disney colour Gents

Tweety colour Junior

Skinner SPL vest

Ladies With sleeves

Kids Sleeve less

Bra Signature underwear

Normal

Himary

Ladies short

Britny short

Panda short

Petticoat

Under Skirt

Socks

School socks

Gents socks

Special orders

Fashion Bug Panty

Fashion Bug refine

panty

Fashion Bug ginger

panty

Fashion Bug bra

Half lace

Side lace

Comfy

Digny

Infinity

Fashion Bug vest

Gents

Junior

SPL vest

With sleeves

Sleeve less

Signature underwear

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Quality Dimensions of the Product

The following pages provide the general garment quality standards for all FG Fashions

(pvt) Ltd products. FG Fashions (pvt) Ltd offices and Vendors must ensure that any

other quality standards established by each brand should be used as the primary

guideline.

The following are the garment quality standards:

No. Standard

1 Garments shall be free of needle cuts, holes, slubs, snags, open seams, broken stitches, puckering/excessive fullness, more than one skipped stitch, raw edges,

or any other flaws or defects that may affect the appearance or the durability of

the garment.

2 Generally, fabric fold marks or center creases are not acceptable in the finished garments. However, if the division approves the use of this crease, then it should

be limited to the back of the sleeves. In some cases, this may be approved on the

back of the garment. However, all efforts should be made to avoid the use of

center crease marks in the critical zones of the garment.

3 Garment shall not contain fabric defects that do not comply with the fabric zone

chart.

4 Garments shall be free of untrimmed or loose threads, pills, defective stitching,

tape, cleaning solution, embroidery hoop marks, or any other visible defect.

5 Garment shall not contain any stains or soils.

6 Fabric stitch, pattern, and nap directions within a garment shall be the same for

all parts.

7 Garment shall not have any shaded parts.

8 Colour shall fall within acceptable shade bands.

9 Colour shall be consistent from garment to garment.

10 All style specifications shall be strictly followed and met. No deviations are

permitted without express written consent from the respective divisions.

11 Overall garment appearance shall be consistent from garment to garment.

12 No garment parts may be caught in any unrelated operation.

13 No pleats in any seaming.

14 Garments shall be free of any dirt, lint, or threads sewn into seams or inside

collars, hems, etc.

15 All garment components requiring stretching to be worn shall have full recovery

of original dimensions after five minutes when stretched.

16 All seam joins shall align within 1/8”.

17 Garments shall be symmetrical and balanced for patterns, stripes, embroideries,

and dimensions.

18 All panels and components within a garment shall match for colour, shade, and cast. This includes collars, armbands, and other trims when the same colour is

specified.

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The following are the seam and stitching quality standards:

No. Standard

1 Seams shall be even in width and lie flat, without twisting, puckering, wavering

or pleats.

2 All knit shoulder seams shall be reinforced with self-fabric or reinforcement

tape.

3 All seams shall be clean finished. Raw or pinked edges are not acceptable.

Tape, ribbon, etc., shall be used where specified to finish or cover seams.

4 Stitches shall be even. Skipped or broken stitches are not acceptable.

5 Stitches (SPI) shall be as specified on specification sheet.

6 Start and stop stitching on cover stitching shall be at a non-visible point.

7 Stress points such as pocket edges shall be reinforced as specified.

8 Stitching tension shall be even. Loose or tight stitching is not acceptable.

9 No concealed stitching may show.

The following are the pressing quality standards:

No. Standard

1 Garments shall be pressed or steamed and be free of wrinkles, creases, or other signs of poor pressing.

2 Garments shall be free of pressing marks, shine, scorching, or burn marks.

3 Pressing shall comply with the style package.

4 Pressing shall not contain unnatural creases or folds.

5 Busted seams are to be pressed open.

6 Garments shall be free of wavy or puckered seams.

7 Sweaters shall not be pressed so much that the yarn is flattened.

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Main Suppliers, Buyers and Competitors

Buyers

Fashion Bug

Nolimit

CIB

Kandy

Thilakawardana

Signature

Other than these special buyers, DG Fashion (pvt) Ltd is selling their products to an

agency who will provide their products island wide. DG Fashion (pvt) Ltd also have a

retail store in Dickwella

Supplies

Fantasia

Sun enterprises - Dye

Naturub

Ruhunu printers – boxers

Southern printers

Mahajana printers

Ishing Lanka – Thread

Competitors

Penguine group

Established in 1989 and grow in partnership with many of customers ensuring the

Group continues to be a leading manufacturer of high quality apparel in Sri Lanka.

Daya Apparel

Daya Apparel Exports (Pvt) Ltd. which is a key contributor to the successful journey

of the Daya Group of Companies which was established in 1992, in the Eastern

Province of Sri Lanka. Presently they have a highly motivated, young work force of

3000, working in 50 lines in our factories located in the Ampara & Monaragala

Districts.

Haimerry Collection

Since the establishment of Haimerry Company in early 1999 there are more than 500

members in all departments and they have their own state of art production facility.

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Awards and Certificates Obtained

They have obtained these awards and certificates while enhancing their trade all over

the island.

Entrepreneur of the year - 2003 Bronze Award

- 2004 Silver Award

- 2005 Bronze Award

- 2006 Silver Award

- 2007

CNCI achiever of Indus teal

Excellence Quality Award - 2005 Bronze Award (National)

- 2005 Gold (Provincial) Award

- 2007

- 2009 Merit Award

- 2008

- 2009 Bronze Award

- 2010 Silver Award

National Productivity & Quality

Award - 2005 Silver Award (National)

- 2005 second place

“SUNFO JEEWANASURI” Award - 2005

- 2006

National Productivity & Quality Award - 2005

- 2006

CNCI Achiever of Industrial Excellence

Award - 2007

- 2008

- 2009 Merit Award

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Chapter 2: Production Process

Stages of the Conversion Process

Design / Sketch

↓

Pattern Design

↓

Sample Making

↓

Production Pattern

↓

Grading

↓

Marker Making

↓

Spreading

↓

Cutting

↓

Sorting/Bundling

↓

Sewing/Assembling

↓

Inspection

↓

Pressing/ Finishing

↓

Final Inspection

↓

Packing

↓

Despatch

Different jobs assigned to the conversion

Operation Job Method

No

01

It is given by buyers to manufacturers containing sketches

Design/Sketch including measurements of particular styles Manual/Computerized

02

Basic block is an individual component of garments without

any style of design (without Allowance, Style, Design)

Basic Block Manual/Computerized

03 Working When a pattern is made for a particular style with net Pattern dimension regarding the basic block along with allowance then Manual/Computerized

it is called working pattern.

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04

Sample To make a sample, this will be approved by buyer. After Garments making a sample, it is sent to buyer for approval to rectify the Manual

faults

05

Approved After rectify the faults, sample is again sent to buyers. If it is ok

Sample then , then it is called approved sample Manual

06 Costing Fabric Costing Manual

Making Charged

Trimmings

Profit

07 Production Making allowance with net dimension for bulk production Manual/Computerized

Pattern

08 Grading If the buyer requires different sizes, so should be grade as S, Manual/Computerized

M, L, XL, XXL

09

Marker Marker is a thin paper which contains all the components for

Making different sizes for a particular style of garments Manual/Computerized

10 Fabric To spread the fabrics on table properly for cutting Manual/Computerized

Spreading

11 Cutting To cut fabric according to marker dimension Manual/Computerized

12 Sorting & Sort out the fabric according to size and for each size make in Manual

Bundling individual bundles

13 Sewing To assemble a full garments Manual

14 After sewing we will get a complete garment which is treated

Ironing & with steam ironing & also several finishing processes are done Manual

Finishing for example extra loose thread cutting

15 Inspection Should be approved as initial sample Manual

16 Packing Treated by Polyethylene bag Manual

17 Cartooning After packing, it should be placed In cartooning for export Manual

18 Despatching Ready for export Manual

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Layout of the Workstation

Layout of a work line – Vest with sleeve

Sewing floor

Lin

e 1

Lin

e 5

Lin

e 4

Lin

e 3

Lin

e 2

Can

teen

Cutting Department

Packing Department Mai

n E

ntr

ance

Packing

Maintenance

Raw material

Store O

ffic

e O

ffic

e

Off

ice

Office

Sew sleeve hem

Sew sleeve side seam

Shoulder O/L

Attach piping to neck

2nd shoulder O/L

Sleeve sttach

Bottom hem

Shoulder tack

New DG Fashions (pvt) Ltd is using

process layout for their production

process.

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Product Development

Over the years, the DG Fashion has achieved many product development technologies

in textile and clothing with the help of their Research & Development team.

Such as:

1. materials technologies such as nano-materials and related processing technologies, and

smart and intelligent textile materials and garments;

2. dyeing and finishing technologies such as new coloration and finishing technologies,

electrolytic indigo dye reduction system and plasma surface treatment system; and

3. Garment technologies including the world’s first sweating fabric mannequin "Walter"

for evaluating the functional performance of garments. Other projects include 3D laser

scanner, computer-aided garment pattern design system, e-manufacturing system, and

flexible manufacturing system that helped New DG fashion (pvt) Ltd to upgrade their

production quality and capability.

4. Flexible foams for bra cups and bra pads. As a island wide leading manufacturer of

undergarments, they offer a broad range of high-quality polyurethane foamed bras

especially developed for the lingerie industry.

5. Reflecting our passion for daily comfort. In the past few years, using polyurethane foam

to manufacture of bras – and in particular, bra cups, cut & sew and moulded cups – has

become a widespread practice, thanks to PU foam's excellent shaping, comfort and

support properties. Within the intimate apparel sector, DG Fashions has pioneered the

development of light stable and delayed yellowing polyurethane foamed bra cups and

bra paddings manufacturers and suppliers.

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Chapter 3: Location Facility

Grid Map of the Location

Factors Concerned With Locating the Facility

When choosing the location, managers of the DG Fashion (pvt) Ltd considered several

factors:

To minimize transport costs, both for raw materials coming into the plant and for

finished goods going out, managers often wanted to locate plants close to suppliers,

customers, or both.

They generally wanted to locate in areas with ample numbers of skilled workers.

They naturally preferred locations where they and their families will enjoy living.

They wanted locations where costs for resources and other expenses—land, labour,

construction, utilities, and taxes—are low.

They looked for locations with a favourable business climate—one in which, for

example, local governments might offer financial incentives (such as tax breaks) to

entice them to do business in their locales.

Managers rarely find locations that meet all these criteria. As a rule, they identified the

most important criteria and aim at satisfying them. In deciding to locate a factory,

managers of DG Fashions were able to satisfy three important criteria: (1) proximity to

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the firm’s suppliers, (2) availability of skilled engineers and technicians, and (3)

favourable living conditions. These factors were more important to them than operating

in a low-cost region or getting financial incentives from local government. Because DG

Fashion distributes its products throughout the island, proximity to customers was also

unimportant.

Chapter 4: Role and Challenges Faced by Operation Management

Role of Operation Management

Operations management is the management of an organization’s productive resources

or its production system.

A production system takes inputs and converts them into outputs. The conversion

process is the predominant activity of a production system. The primary concern of an

operations manager is the activities of the conversion process. Operations managers

make decisions when problems are complex and wrong decisions are costly. They have

to take decisions like:

Strategic Decisions: These decisions are of strategic importance and have long-term

significance for the organization. Examples include deciding: the design for a new

product’s production process where to locate a new factory whether to launch a new-

product development plan

Operating Decisions: These decisions are necessary if the ongoing production of goods

and services is to satisfy market demands and provide profits. Examples include

deciding: how much finished-goods inventory to carry the amount of overtime to use

next week the details for purchasing raw material next month.

Control Decisions: These decisions concern the day-to-day activities of workers,

quality of products and services, production and overhead costs, and machine

maintenance. Examples include deciding: labour cost standards for a new product

frequency of preventive maintenance new quality control acceptance criteria Apart

from this they also have to provide information about the outputs, the conversions, and

the inputs is fed back to management. This information is matched with management’s

expectations. When there is a difference, management must take corrective action to

maintain control of the system.

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Challenges Faced by Operation Management

There are several challenges face by the operations management of the DG fashions

garment. It is most important to identify the challenges for efficient and effective supply

to the accurate demand.

These challenges can be seen against the operations management.

Lack of human resource

Not having clam and quite surrounding for workers

Global competition

Competition from local competitors

Remaining cost competitive

Changing culture

Material costs and skilled labor

Increases in raw material pricing, due to inflation.

Do not have technical engineering talent / global demands on raw materials

Poor managing outsourced/extended supply chains

Taxes charge by government for materials

Rising fuel costs

Changing customer expectations about fashions.

Shortage of qualified people

Lack of capital investment for large machineries.

Lack of long term focus on core business

Poor market conditions

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Conclusion

Operations Management focuses on carefully managing the processes to produce

and distribute products and services. Operations management is in regard to all

operations within the organization. A great deal of focus is on efficiency and

effectiveness of processes. Therefore, operations management often includes

substantial measurement and analysis of internal processes. Ultimately, the nature of

how operations management is carried out in an organization depends very much on

the nature of products or services in the organization.

Thus we can see that the management of operations plays a very important role in

the operations at New DG Fashions. The various defects that lie in the way the product

is delivered can be easily identified and rectified too if viewed from an operation

manager’s perspective. Today, the role of operations is not merely confined to that

of ‘controlling costs’, but is viewed as a means to achieve organisational goals. Proper

implementation of operations management tools, techniques and strategies can give DG

Fashions an operations-based advantage arising from reduced costs, high quality,

customer service, product performance, variety and a highly motivated staff.

With increasing globalisation a firm can no longer hope to survive on its past

laurels. Businesses must realise that substantial interdependencies exist in different

functional areas within an organisation and should take an “Integrated Systems

Approach” to achieve breakthrough improvements in performance. Apart from being

creative and international in its outlook, the designed operations should recognise the

need for a team work and must be ethical at the same time too. To conclude, it would

not be wrong to say that only those companies who seriously focus their efforts towards

the formulation of the right operations strategy, and its timely interpretation can assure

themselves of continued success well into the next millennium.

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References

http://www.newdgfashions.com/

http://www.list.lk/new-dg-fashion-garment-(pvt-)-ltd.htmb

Appendices