Inventory Management

OPERATION MANAGEMENT ON INVENTORY
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PROJECT REPORT
ON
OPERATION MANAGEMENT
(COST AND INVENTARY MANAGEMENT)
FOR PAARTIAL FULFILLMENT
OF
MASTER OF MANAGEMENT STUDIES
SUBMITTED BY
VIJAY SANE
SPECIALIZATION:
(OPERATION MANAGEMENT)
(2012-2014)
ROLL NO:
UNDER THE GUIDANCE OF
PROF:
Mr. VIRAL DESAI SIR
GAHLOT INSTITUTE OF MANAGEMENT STUDIES AND
RESEARCH, KOPARKHAIRNE

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ACKNOWLEDGE

MY SINCERE THANKS AND GRATITUDE TO OUR COLLEGE GAHLOT INSTITUTE OF MANAGEMENT STUDIES
AND RESEARCH, DIRECTOR DR.SUBHASH A.KULKARNI AND MY PROJECT GUIDE PROF(MR DESAI SIR) FOR
PROVIDING WITH THE NECESSARY SUPPORT AND THE TIMELY GUIDANCE REQUIRED FOR THE SUCCESSFUL
COMPLETION OF THIS PROJECT
I FURTHER EXPRESS MY THANKS TO MR JAGDISH MEHTA (PROJECT TRAINER) AT JAI AMBE
TRADERS(MANUFACTURING CUM EXPORTING INDUSTRY) FOR GIVING ME OPPORTUNITY TO CARRY OUT MY
PROJECT IN THE RESPECTIVE DEPARTMENT WHICH HAS FURTHER ENHANCED MY KNOWLEDGE OF THE
SUBJECT BOTH THEORETICALLY AND PRACTICALLY
LAST BUT NOT LEAST, I WOULD LIKE TO THANK MY PARENTS FOR THEIR CONSISTENT HELP AT ALL TIMES

DAWAT HARISH
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DECLARATION

I, DAWAT HARISH ,THE UNDERSIGNED, A STUDENT OS GAHLOT INSTITUTE OS MANAGEMENT AND
RESEARCH KOPARKHAIRNE DECLARE THAT THIS PROJECT REPORT TITLEDOPERATION MANAGEMENT(COST
AND INVENTORY MANAGEMENT) WAS SUBMITTED BY ME IN PARTIAL FULFILLMENT FOR THE
REQUIREMENT OF THE COURSE OS MASTER OS MANAGEMENT STUDIES.THIS IS MY ORIGINAL WORK AND
HAS NOT BEEN PREVIOUSLY SUBMITTED AS A PART OS ANOTHER DEGREE OR DIPLOMA OF ANOTHER
BUSINESS SCHOOL OR UNIVERSITY
THE FINDINGS AND CONCLUSION OF THIS REPORT ARE ENTIRELY BASED ON MY PERSONAL STUDY AND
EXPERIENCE

DAWAT HARISH

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CERTIFICATE

THIS IS TO CERTIFY THAT MR( DAWAT HARISH VENKATESH) A STUDENT OF GAHLOT INSTITUTE OF
MANAGEMENT AND RESEARCH HAS SUCCESSFULLY COMPLETED THE SUMMER INTERNSHIP PROJECT
ENTITTLED9OPERATION)IN PARTIAL FULFILLMENT OF REQUIREMENT FOR COMPLETION OF MASTER OF
MANAGEMENT STUDIES AS PRESCRIBED BY UNIVERSITY OF MUMBAI

INTERNAL PROJECT GUIDE DIRECTOR

DATE: __________________________

EXTERNAL EXAMINER DATE: ___________________________
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COMPANY CERTIFICATE

THIS IS TO CERTIFY THAT DAWAT HARISH SECOND YEAR STUDENT FROM GAHLOT
INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH HAS COMPLETED HIS
SUMMER INTERNSHIP AT JAI AMBE TRADERS BHIWANDI (THANE) UNDER THE
SUPERVISION OF MR. JAGDISH MEHTA (TRAINER OF OPERATION DEPARTMENT)
WITH EFFECT FROM 8
TH
MAY 2012 TO 8
TH
JULY 2012

MR.JAGDISH MEHTA
(MANAGER)
JAI AMBE TRADERS
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EXECUTIVE SUMMARY

The project is all about understanding of operation management of a company Inventory is
monitored differently for raw materials, work in progress, finished goods and stores. Monthly
inventory report is sent to chairman through the finance department to corporate office.
Supply chain management (SCM) is the management of a network of interconnected businesses
involved in the provision of product required by the end customers in a supply chain Supply chain
management spans all movement and storage of raw materials, work-in-process inventory, and
finished goods from point of origin to point of consumption.
Another definition is provided by the APICS Dictionary when it defines SCM as the "design,
planning, execution, control, and monitoring of supply chain activities with the objective of creating
net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing
supply with demand and measuring performance globally."

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INDEX

No. PARTICULARS PAGE NO.
Chapter - 1 Introduction 1
Objective of the study 3
Need of the project 3
Scope of the project 4
Research Methodology 5
Limitation of the project 6
Chapter -2 Company profile 7
Organization Chart 12
Benefits Given by the company 13
Chapter - 3 Theoretical Background 16
Ratio Analysis and Interpretation 22
Chapter - 4 Findings 37
Suggestions 40

Chapter- 5 Bibliography 41

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INTRODUCTION

Operations management (OM) is the business function that plans, organizes, coordinates, and
controls the resources needed to produce a companys goods and services. Operations management is
a management function. It involves managing people, equipment, technology, information, and many
other resources. Operations management is the central core function of every company. This is true
whether the company is large or small, provides a physical good or a service, is for profit or not for
profit. Every company has an operations management function. Actually, all the other organizational
functions are there primarily to support the operations function. Without operations, there would be
no goods or services to sell. Consider a retailer such as Gap that sells casual apparel. The marketing
function provides promotions for the merchandise, and the finance function provides the needed
capital. It is the operations function, however, that plans and coordinates all the resources needed to
design, produce, and deliver the merchandise to the various retail locations.Without operations, there
would be no goods or services to sell to customers. The role of operations management is to
transform a companys inputs into the finished goods or services. Inputs include human resources
(such as workers and managers), facilities and processes (such as buildings and equipment), as well
as materials, technology, and information. Outputs are the goods and services a company produces.
Figure 1-2 shows this transformation process. At a factory the transformation is the
Inputs
Human
Resources
Facilities
& Processes
Technologies
Material
The
Transformation
Process
Outputs
Goods
Services
Performance Information
Customer Feedback
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The transformation process
physical change of raw materials into products, such as transforming leather and rubber into
sneakers, denim into jeans, or plastic into toys. At an airline it is the efficient movement of
passengers and their luggage from one location to another. At a hospital it is organizing resources
such as doctors, medical procedures, and medications to transform sick people into healthy ones.
Operations management is responsible for orchestrating all the resources neededto produce the final
product. This includes designing the product; deciding what resources are needed; arranging
schedules, equipment, and facilities; managing inventory; controlling quality; designing the jobs to
make the product; and designing work methods. Basically, operations management is responsible for
all aspects of the process of transforming inputs into outputs. Customer feedback and performance
information are used to continually adjust the inputs, the transformation process, and characteristics
of the outputs. As shown in Figure 1-2, this transformation process is dynamic in order to adapt to
changes in the environment. Proper management of the operations function has led to success for
many companies. For example, in 1994 Dell Inc. was a second-tier computer maker that managed its
operations similar to others in the industry. Then Dell implemented a new business model that
completely changed the role of its operations function. Dell developed new and innovative ways of
managing the operations function that have become one of todays best practices. These changes
enabled Dell to provide rapid product delivery of customized products to customers at a lower cost,
and thus become an industry leader. Just as proper management of operations can lead to company
success, improper management of operations can lead to failure. This is illustrated by Kozmo.com, a
Web-based home delivery company founded in 1997. Kozmos mission was to deliver products to
customerseverything from the latest video to ice creamin less than an hour. Kozmo was
technology enabled and rapidly became a huge success. However, the initial success gave rise to
overly fast expansion. The company found it difficult to manage

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OBJECTIVE OF STUDY

Operation management is the most widely used and powerful technique of .The main objective of the
present study is to know the operation department of the company
.

To know the overall operational efficiently and performance of the company.

To know the financial position of company.

To provide reliable operation information to the company.

To know the supply chain management from inputs to the conversion process to the output
process

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NEED OF THE PROJECT

Inventory management plays a vital role in keeping the wheel of the business running. Every
business requires capital ,without it cant be promoted. Investment decisions is concerned with
investment in current assets and fixed assets .working capital plays a key role in a business
enterprise just as the role of heart in human body . it acts as grease to run the wheels of fixed
assets .its effective provision can ensure the success of business while its inefficient
management can lead not only to loss but also to the ultimate downfall of what otherwise
might be considered as a promising concern .

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RESEARCH METHODOLOGY

An effective inventory management should:
Ensure continuous supply of materials.
Maintain sufficient stock of RM in periods of short supply and anticipate price
changes.
Maintain sufficient FG inventory for smooth sales operation and efficient customer
service
Minimize the carrying cost and time.
Control investment in inventory, and keep it at an optimum level.
Average stock-holding periods will be influenced by the nature of the business. For example,
a fresh vegetable shop might turn over its entire stock every few days while a motor factor would be
much slower as it may carry a wide range of rarely-used spare parts in case somebody needs them.
The key issue for a business is to identify the fast and slow stock movers with the objectives of
establishing optimum stock levels for each category and, thereby, minimize the cash tied up in
stocks. Factors to be considered when determining optimum stock levels include:
What are the projected sales of each product?
How widely available are raw materials, components etc.?
How long does it take for delivery by suppliers?
Can you remove slow movers from your product range without compromising best
sellers?
For better stock control, the following steps can be undertaken:
Review the effectiveness of existing purchasing and inventory systems.
Know the stock turn for all major items of inventory.
Apply tight controls to the significant few items and simplify controls for the trivial
many.
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Sell off outdated or slow moving merchandise - it gets more difficult to sell the longer
you keep it.
Consider having part of your product outsourced to another manufacturer rather than
make it yourself.

INVENTORY MANAGEMENT TECHNIQUES :
The two basic questing related to inventory management are:
1) What should be the size of the order?
2) At what level the order should be placed?
The answer to the first question is the Economic Order Quantity (EOQ) model, which talks
about three types of costs in relation to inventory management i.e. ordering cost, carrying cost and
shortage cost.

ORDERING COSTS CARRYING COSTS SHORTAGE COSTS
Preparation of
purchase order.
Expediting.
Transport.
Receiving and
placing in storage.
Interest on capital locked
in inventory.
Storage.
Insurance.
Obsolescence.
Taxes.
Purchase at a high
cost due to shortage.
Extra cost incurred to
meet the customers
demand due to
existing shortage.
Losing the customer.

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LIMITATIONS OF THE STUDY

The study conducted and done is analytical ,subject to the following limitations

The study is mainly carried out based onprimary operations which are carried out in the beginning
the final operations are not carried out due to lack of time
As the study was for short span of 8 weeks and due to lack of time other areas could not be well
focuse

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COMPANY PROFILE

JAI AMBE TRADERS was incorporated in the year 1972. we are the manufacturers of
garments with different qualities of around 1000 different qualities
Some of our main clients are RAYMONDS AND CENTURY MILLS and many such companies..

COMPANY :- JAI AMBE TRADERS

ADDRESS:- 948 BANDARI COMPOUND NARPOLI BHIWANDI DIST THANE

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ORGANISATION CHART

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BENEFITS OF THE COMPANY

PROVIDE PROVIDENT FUND TO THE WORKERS

PROVIDE RETIREMENT FUND AT THE TIME OF LEAVING THE COMPANY

PROVIDE BONUS TO THE WORKERS ONCE IN AN YEAR

MAKING INCREMENTS TO THE WORKERS IN SALARY

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The textile industry is primarily concerned with the production of yarn, and cloth and the subsequent
design or manufacture of clothing and their distribution. The raw material may be natural, or
synthetic using products of the chemical industry.
Contents

The industrial processes

Cotton Manufacturing
Processes

Bale Breaker Blowing Room

Willowing

Breaker Scutcher Batting

Finishing Scutcher Lapping

Carding Carding Room

Silver Lap

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Combing

Drawing

Slubbing

Intermediate

Roving

Fine Roving

Mule Spinning - Ring Spinning Spinning

Reeling

Doubling

Winding Bundling Bleaching

Winding

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Warping

Cabling

Sizing/Slashing/Dressing

Gassing

Weaving

Spooling

Cloth Yarn (Cheese)- - Bundle Sewing Thread

Cotton is the world's most important natural fiber. In the year 2007, the global yield was 25 million
tons from 35 million hectares cultivated in more than 50 countries.[1]
There are five stages[2]
Cultivating and Harvesting
Preparatory Processes
Spinning
Weaving
Finishing
Fibers
Artificial fibers can be made by extruding a polymer, through a spinneret into a medium where it
hardens. Wet spinning (rayon) uses a coagulating medium. In dry spinning (acetate and triacetate),
the polymer is contained in a solvent that evaporates in the heated exit chamber. In melt spinning
(nylons and polyesters) the extruded polymer is cooled in gas or air and then sets.[3] All these fibers
will be of great length, often kilometers long.
Natural fibers are either from animals (sheep, goat, rabbit, silk-worm) mineral (asbestos) or from
plants (cotton, flax, sisal). These vegetable fibers can come from the seed (cotton), the stem (known
as bast fibers: flax, Hemp, Jute) or the leaf (sisal).[4] Without exception, many processes are needed
before a clean even staple is obtained- each with a specific name. With the exception of silk, each of
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these fibers is short being only centimeters in length, and each has a rough surface that enables it to
bond with similar staples.[4]
Artificial fibers can be processed as long fibers or batched and cut so they can be processed like a
natural fiber.
History
Cottage stage
Textile manufacturing by pre-industrial methods
There are some indications that weaving was already known in the Palaeolithic. An indistinct textile
impression has been found at Pavlov, Moravia. Neolithic textiles are well known from finds in pile
dwellings in Switzerland. One extant fragment from the Neolithic was found in Fayum at a site
which dates to about 5000 BC.
The key British industry at the beginning of the 18th century was the production of textiles made
with wool from the large sheep-farming areas in the Midlands and across the country (created as a
result of land-clearance and enclosure).This was a labor-intensive activity providing employment
throughout Britain, with major centres being the West Country; Norwich and environs; and the West
Riding of Yorkshire. The export trade in woolen goods accounted for more than a quarter of British
exports during most of the 18th century, doubling between 1701 and 1770.[2] Exports of the cotton
industry centered in Lancashire had grown tenfold during this time, but still accounted for only a
tenth of the value of the woolen trade. Prior to the 17th century, the manufacture of goods was
performed on a limited scale by individual workers. This was usually on their own premises (such as
weavers' cottages) and goods were transported around the country. clothiers visited the village with
their trains of pack-horses. Some of the cloth was made into clothes for people living in the same
area, and a large amount of cloth was exported. Rivers navigations were constructed, and some
contour-following canals. In the early 18th century, artisans were inventing ways to become more
productive. Silk, Wool, Fustian, and Linen were being eclipsed by Cotton, which was becoming the
most important textile. This set the foundations for the changes.[5]
In Roman times, wool, linen and leather clothed the European population, and silk, imported along
the Silk Road from China, was an extravagant luxury. The use of flax fiber in the manufacturing of
cloth in Northern Europe dates back to Neolithic times.
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During the late medieval period, cotton began to be imported into northern Europe. Without any
knowledge of what it came from, other than that it was a plant, noting its similarities to wool, people
in the region could only imagine that cotton must be produced by plant-borne sheep. John
Mandeville, writing in 1350, stated as fact the now-preposterous belief: "There grew in India a
wonderful tree which bore tiny lambs on the endes of its branches. These branches were so pliable
that they bent down to allow the lambs to feed when they are hungry." This aspect is retained in the
name for cotton in many European languages, such as German Baumwolle, which translates as "tree
wool". By the end of the 16th century, cotton was cultivated throughout the warmer regions of Asia
and the Americas.
The main steps in the production of cloth are producing the fiber, preparing it, converting it to yarn,
converting yarn to cloth, and then finishing the cloth. The cloth is then taken to the manufacturer of
garments. The preparation of the fibers differs the most, depending on the fiber used. Flax requires
retting and dressing, while wool requires carding and washing. The spinning and weaving processes
are very similar between fibers, however.
Spinning evolved from twisting the fibers by hand, to using a drop spindle, to using a spinning
wheel. Spindles or parts of them have been found in archaeological sites and may represent one of
the first pieces of technology available. They were invented in India between 500 and 1000 AD.[6]
History during the industrial revolution
Textile manufacture during the Industrial Revolution
The textile industry grew out of the industrial revolution in the 18th Century as mass production of
yarn and cloth became a mainstream industry.[7]
In 1734 in Bury, Lancashire, John Kay invented the flying shuttle one of the first of a series of
inventions associated with the cotton industry. The flying shuttle increased the width of cotton cloth
and speed of production of a single weaver at a loom.[8] Resistance by workers to the perceived
threat to jobs delayed the widespread introduction of this technology, even though the higher rate of
production generated an increased demand for spun cotton.

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Shuttles
In 1761, the Duke of Bridgewater's canal connected Manchester to the coal fields of Worsley and in
1762, Matthew Boulton opened the Soho Foundry engineering works in Handsworth, Birmingham.
His partnership with Scottish engineer James Watt resulted, in 1775, in the commercial production of
the more efficient Watt steam engine which used a separate condensor.
In 1764, James Hargreaves is credited as inventor of the spinning jenny which multiplied the spun
thread production capacity of a single worker initially eightfold and subsequently much further.
Others[9] credit the original invention to Thomas Highs. Industrial unrest and a failure to patent the
invention until 1770 forced Hargreaves from Blackburn, but his lack of protection of the idea
allowed the concept to be exploited by others. As a result, there were over 20,000 Spinning Jennies
in use by the time of his death. Again in 1764, Thorp Mill, the first water-powered cotton mill in the
world was constructed at Royton, Lancashire, England. It was used for carding cotton. With the
spinning and weaving process now mechanized, cotton mills cropped up all over the North West of
England
Nineteenth century developments
For further details of the operation and history of looms, see Power loom.
For further details of the operation and history of spinning mules, see Spinning mule.
With the Cartwright Loom, the Spinning Mule and the Boulton & Watt steam engine, the pieces
were in place to build a mechanised textile industry. From this point there were no new inventions,
but a continuous improvement in technology as the mill-owner strove to reduce cost and improve
quality. Developments in the transport infrastructure; that is the canals and after 1831 the railways
facilitated the import of raw materials and export of finished cloth.
Firstly, he use of water power to drive mills was supplemented by steam driven water pumps, and
then superseded completely by the steam engines. For example Samuel Greg joined his uncle's firm
of textile merchants, and, on taking over the company in 1782, he sought out a site to establish a
mill.Quarry Bank Mill was built on the River Bollin at Styal in Cheshire. It was initially powered by
a water wheel, but installed steam engines in 1810.Quarry Bank Mill in Cheshire still exists as a well
preserved museum, having been in use from its construction in 1784 until 1959. It also illustrates
how the mill owners exploited child labor, taking orphans from nearby Manchester to work the
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cotton. It shows that these children were housed, clothed, fed and provided with some education. In
1830, the average power of a mill engine was 48 hp, but Quarry Bank mill installed an new 100 hp
water wheel.[10] William Fairbairn addressed the problem of line-shafting and was responsible for
improving the efficiency of the mill. In 1815 he replaced the wooden turning shafts that drove the
machines at 50rpm, to wrought iron shafting working at 250 rpm, these were a third of the weight of
the previous ones and absorbed less power.[10]

A Roberts loom in a weaving shed in 1835. Note the wrought iron shafting, fixed to the cast iron
columns
Secondly, in 1830, using a 1822 patent, Richard Roberts manufactured the first loom with a cast iron
frame, the Roberts Loom.[8] In 1842 James Bullough and William Kenworthy, made the Lancashire
Loom . It is a semi automatic power loom. Although it is self-acting, it has to be stopped to recharge
empty shuttles. It was the mainstay of the Lancashire cotton industry for a century, when the [
Originally, power looms were shuttle-operated but in the early part of the 20th century the faster and
more efficient shuttleless loom came into use. Today, advances in technology have produced a
variety of looms designed to maximize production for specific types of material. The most common
of these are air-jet looms and water-jet looms. Industrial looms can weave at speeds of six rows per
second and faster.

Roberts self acting mule with quadrant gearing
Thirdly, also in 1830, Richard Roberts patented the first self-acting mule. Stalybridge mule spinners
strike was in 1824,this stimulated research into the problem of applying power to the winding stroke
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of the mule.[11] The draw while spinning had been assisted by power, but the push of the wind had
been done manually by the spinner, the mule could be operated by semiskilled labor. Before 1830,
the spinner would operate a partially powered mule with a maximum of 400 spindles after, self-
acting mules with up to 1300 spindles could be built.[12]

The industrial revolution changed the nature of work and society The three key drivers in these
changes were textile manufacturing, iron founding and steam power.[13][14][15][16] The
geographical focus of textile manufacture in Britain was Manchester, England and the small towns of
the Penis and southern Lancashire.
Textile production in England peaked in 1926, and as mills were decommissioned, many of the
scrapped mules and looms were bought up and reinstated in India. The demographic change made by
the Great European War, had made the labor-intensive industry un-profitable in England, but in India
and later China it was an aid to development.
Commerce and Regulation
The Multi Fibre Arrangement (MFA) governed the world trade in textiles and garments from 1974
through 2004, imposing quotas on the amount developing countries could export to developed
countries. It expired on 1 January 2005.
The MFA was introduced in 1974 as a short-term measure intended to allow developed countries to
adjust to imports from the developing world. Developing countries have a natural advantage in
textile production because it is labor intensive and they have low labor costs. According to a World
Bank/International Monetary Fund (IMF) study, the system has cost the developing world 27 million
jobs and $40 billion a year in lost exports.[17]
However, the Arrangement was not negative for all developing countries. For example the European
Union (EU) imposed no restrictions or duties on imports from the very poorest countries, such as
Bangladesh, leading to a massive expansion of the industry there.
At the General Agreement on Tariffs and Trade (GATT) Uruguay Round, it was decided to bring the
textile trade under the jurisdiction of the World Trade Organization. The Agreement on Textiles and
Clothing provided for the gradual dismantling of the quotas that existed under the MFA. This process
was completed on 1 January 2005. However, large tariffs remain in place on many textile products.
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Bangladesh was expected to suffer the most from the ending of the MFA, as it was expected to face
more competition, particularly from China. However, this was not the case. It turns out that even in
the face of other economic giants, Bangladeshs labor is cheaper than anywhere else in the world.
While some smaller factories were documented making pay cuts and layoffs, most downsizing was
essentially speculative the orders for goods kept coming even after the MFA expired. In fact,
Bangladesh's exports increased in value by about $500 million in 2006

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UNIT OPERATIONS
Carding
Is the preliminary process in spun yarn manufacture. The fibres are separated, distributed, equalized,
and formed into a thin web and condensed into a continuous, untwisted strand of fibres called a
sliver. This process also removes impurities and a certain amount of short, broken or immature
fibres.
Spinning
Is the process of making yarn from fibres by a combined drawing out and twisting operation or from
filament tow by the combination of cutting/breaking with drafting and twisting in a single series of
operations.
Slashing (Sizing)
The yarn is run through a size solution and then dried so that it has the strength and stiffness required
to withstand the abrasion and friction generated in the weaving operation.
Weaving
Is the process of interlacing two yarns of similar materials so that they cross each other at right
angles to produce woven fabric.
Knitting
Is the process of constructing fabric by an interlocking series of loops of one or more yarns.
Tufting
Is the process of making carpets and involves a wide multiple-machine needle process that sews pile
yarns to a broad fabric backing.
Desizing
Removes the sizing compounds applied to yarns to impart tensile strength. The starch sizing
compounds are solubilized with alkali, acid or enzyme, and the fabric is washed thoroughly. Alkaline
desizing utilizes a weak alkaline solution to facilitate size removal, while acid desizing employs a
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dilute acid solution to hydrolyze the size and render it water soluble. Enzyme desizing utilizes
enzymes to decompose size. After solubilizing the size, the fabric is rinsed clean.

Scouring
Removes natural and acquired impurities from fibres and fabric. Synthetic fibres require less
scouring than does cotton or wool. Scouring agents include detergents, soaps, and various assisting
agents, such as alkalis, wetting agents, defoamers, and lubricants. After scouring, the goods are
thoroughly rinsed (or washed) to remove excess agents.
Wool Carbonizing
Removes burrs and other vegetable matter from loose wool or woven fabric goods. The process
consists of acid impregnation, baking and mechanical agitation. A dilute solution of sulfuric acid is
used to degrade cellulosic impurities to hydrocellulose without damaging the wool. The excess acid
is squeezed from the wool and the wool is baked to oxidize the contaminants to gases and a solid
carbon residue. The material then passes through pressure rollers to crush the solid residue and into a
mechanical agitator to shake loose the crushed material. The acid content in the material remains
high after agitation, requiring neutralization and rinsing before further processing.
Fulling
Fulling involves mechanical working in a bath of detergent and water and imparts a felt quality to the
wool.
Bleaching
Bleaching is performed to whiten (remove coloring) the fabric to a high degree. It is a common
process used to whiten cotton, wool and some synthetic fibres by removing the natural coloring. It is
usually performed after scouring and prior to dyeing or printing. Bleaching chemicals include
sodium hypochlorite, hydrogen peroxide, and sodium perborate, as well as optical brighteners. Batch
bleaching is done in dyers (continuous processes use J-boxes) where fabric is tacked for a given
period to allow the chemical to work before goods are withdrawn from the bottom of the box.
Bleaching is followed by thorough rinsing.
Mercerizing
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Mercerizing is only applied to 100% cotton fabrics and sewing threads. It is used to improve
strength, luster and dye affinity, albeit at the expense of extensibility. It is accomplished by the
application of a cold solution of sodium hydroxide, causing the fibres to swell and adopt a circular
cross-section. The alkali is then removed by an acid wash.
Dyeing
Can be performed in the stock, yarn or fabric state, and single or multiple-fibre types can be dyed.
Multiple-fibre may require multiple or sequential steps.
Stock dyeing is performed before the fibre is converted to the yarn state and can be a batch or
continuous process. Yarn dyeing is performed on yarns used for woven goods, knit goods, and
carpets. Usual methods include skein, package, and space dyeing.
Fabric dyeing is the most common method in use today because it can be continuous or
semicontinuous, as well as a batch process. Methods employed include becks (winch), jet, jig, beam,
and continuous range.
The various types of dyes used are classified according to the method of application. A listing of the
more prominent dyes follows:
Vat: the dye is put on the goods in their reduced state and is then oxidized. These dyes have
excellent light and wash fastness;
Developed: the dye is applied to the cloth and diazotized, and the color is developed with a
secondary chemical called the developer. The dyes have good wash fastness;
Naphthol: the naphthol is applied to the fabric and passed through the developer for coupling.
This produces bright colors and good fastness to light, wash, and bleach;
Sulfur: the dye is put on the cloth in a reduced state and is then oxidized, producing good
fastness to light and washing;
Aniline Black: the aniline is oxidized on the goods by air or steam aging, producing excellent
fastness to light;
Direct: applied directly to the cloth. These are usually low-cost dyes, easy to apply but not
very fast;
Reactive: a reactive dye is a dye which reacts chemically with the cellulose molecules (i.e.
the cotton itself). These are quite widely used.
Printing
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Printing is similar to dyeing, except that print color is applied to specific areas of the cloth. Dyes and
auxiliaries are similar to those used in fabric dyeing; however, the color application techniques are
quite different. Textiles are usually wet-printed by roller, rotary screen or flatbed screen printing
methods.
Finishing
The primary purpose of the finishing process is to alter properties affecting the care, comfort,
durability, environmental resistance, aesthetic value, and human safety associated with the fabric.
Finishes can be applied, for example, to make a fabric wrinkle resistant, crease retentive, water
repellant, flame resistant, mothproof, mildew resistant, and/or stain resistant. Finishes include a very
large and diverse group of chemicals ranging from antistatic to shrink-resistant finishes. In wet-
finishing, the sequence of steps typically includes chemical finish application together with
mechanical techniques, the advantages of the latter being improved feel, strength and abrasion
resistance and lower chemical consumption and waste

GIMSR

ANALYSIS OF TEXTILE INDUSTRY OPERATIONS

According to the China National Textile and Apparel Council (CNTAC), operation of China's textile
industry has demonstrated the following features in 2006: Firstly, production has maintained a steady
fast growth, which is well connected with sales. Sales ratio of large textile enterprises stood at 97.5%
in the first three quarters of this year, up 0.14 percentage points over the same period of last year.
Secondly, the industry demonstrated a strong pep of growth in added value and profits, and the
operation quality further improved. Added value of large textile enterprises increased about 23.7% in
the first three quarters, and their profits jumped 32%. Thirdly, export increased steadily, and the
market structure and export form further adjusted. Export of textiles and garments increased 24.15%
year on year in the period. Fourthly, growth of fixed asset investment slowed down, while the
proportion of investment by self-raised funds of enterprises further increased, and that in central and
western parts of the country stepped up.
China's textile industry maintained more than 20% growth in both output value and sales revenue in
the first nine months of this year. Large textile and garment enterprises realized sales revenue of
RMB1,725.8 billion, the delivery value for export was RMB475.3 billion, industrial added value was
RMB465.3 billion, and profits were RMB60.1 billion, rising 22.69%, 15.29%, 23.69% and 32.11%
year on year respectively. In particular, the growth of efficiency was a highlighter, and the growth of
profits of the textile industry ranked among the first among various industrial sectors in the country.
Cotton textile placed first in the growth, with the profit increasing 43.23% in January-September.
Chemical fibre production stopped making losses and made profits amounting to RMB5.125 billion,
rising 38.20% year on year.
Domestic demand has become an important factor for the growth of the industry. In recent years,
China's textile industry has maintained a higher growth of sales revenue than the delivery value for
export. The growth of sales revenue further sped up in the first three quarters of this year to present
7.40 percentage points higher growth than the delivery value for export, and the proportion of the
delivery value for export has dropped to 27.54% in the first three quarters from the 29.58% in the
same period of last year. Consumption of clothing and such products has demonstrated a strong
momentum of growth on the domestic textile consumption market. Retail of clothing, shoes,
headgear and knitted products increased 18.6% in January-September as compared with the same
period of last year, which was 5.1 percentage points higher than the growth of retail of consumer
goods in the country.
GIMSR

At the same time, some problems also exist in the operation of textile industry :
1.RMB appreciation has affected the export, while trade friction, restriction and imperfectness of the
export quota mechanism have also affected the growth of China's export to the EU and the United
States market. China's total export of textiles and garments reached US$107.733 billion in the first
nine months of this year, rising 24.12% year on year, about the same as that of the same period of
last year. For export market structure, export to the EU and the USA still increased in the period, but
the growth slowed down sharply because of various factors such as restrictions set by the EU and the
United States on textile products and high costs on quota. China's export to the EU and the United
States increased 9.32% and 9.88% in the first nine months, down 50.65 and 55.73 percentage points
from the same period of last year respectively, and the proportion of the EU and the US market in the
total export of textiles and garments dropped to 26.59% in the nine months from 34.09% in the same
period of last year.
2. The state's policy on adjustment of export rebate policy was published in September, of which the
export rebate on textile products was cut from 13% to 11% which would exert direct effect on the
whole textile industry. Analysts held that the two percentage points on export of textile products is
estimated to impact on the profits of the whole industry by as much as RMB2.1 billion.
3. The increase of costs will play an increasing role on competitiveness of the textile industry. The
main operating costs of the industry jumped 22.73% because of the objective factors in the first nine
months. The costs on energy, raw materials and labour have increased, and China's present cost on
labour has outstripped that of Southeast Asian countries, resulting in a large number of orders
starting to shift to these countries in the first half of this year, and which, consequently, reported
faster growth than China in export of textiles and garments in the period.
In addition, resources and environmental factors have also exerted influence on development of the
textile industry. China imported 3.16 million tons of cotton in Jan-Sept, accounting for about 43% of
the total cotton used by the textile sector, showing a high degree of dependence on import. China's
development of major chemical fibre raw materials such as PTA lags behind development of
downstream products, which will undoubtedly threaten steady development of the industry.
Environmental protection has become an issue of great importance for the textile industry. According
to statistics from CNTAC, the textile industry ranks first in the manufacturing sector in use of water,
while being placed bottom in recycling of wastewater in the printing and dyeing sector of the
industry.
GIMSR

SUGGESTION

As per responses from warehouse and user section employees overall activities of warehouse
are very good. During training period we observed materials management in warehouse and made
some recommendations which we feel can improve the efficiency of materials management in
warehouse.

Warehouse is pumping station of all the operations that are carried out in plant. It is
responsible for materials management. It fulfills the requirement of user section on routine or urgent
basis.

Major activities that are carried out in warehouse are:
1.Ordering ordering of material as per demand from user section taking budget for order in
account.
2. Follow-up Remain in contact with vendor for maintaining good vendor relationship.and with
octroi agent for timely clearing of material.
3. Receiving to receive ordered material along with necessary documents.
4. Inventory To place the received material into proper bins to facilitate issuing process.
5. Issuing Issue material according to demand from user section.
All the above activities are carried out with the ERP package called MAXIMO. Which reduces
manual work to large extension
GIMSR

BIBLOGRAPHY

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OPERATION MANAGEMENT ON INVENTORY

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