Managing Business Operations case study
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Transcript of Managing Business Operations case study
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
Page | 2
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
Page | 3
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.
Page | 4
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
Page | 5
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.
Page | 7
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
Page | 8
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.
Page | 9
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
Page | 12
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.
Page | 13
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
Page | 14
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.
Page | 15
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.
Page | 16
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
Page | 17
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.
Page | 18
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
Page | 19
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.
Page | 20
References
http://www.newdgfashions.com/
http://www.list.lk/new-dg-fashion-garment-(pvt-)-ltd.htmb
Appendices