Professional Documents
Culture Documents
Businesses in these communities may have a hard time reaching mainstream markets.
Even when businesses get off the ground, they sometimes do not hire many individuals
from the immediate neighborhood, or they may not pay enough to support a family.
Because of the risks, organizations interested in increasing the income and assets of low-income
people sometimes take a different approach, which might be called connecting to mainstream
employment. Here, community groups help residents acquire marketable skills, take advantage
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of supportive services, and find transportation to jobs. But this approach can encounter
challenges as well. When there are significant barriers to connecting to mainstream employment,
small business development can be an attractive option.
3.5.4Market Analysis
With this exercise, the participants get what may be their first contact with a market research.
They elaborate and apply a questionnaire twice: first, they prepare a questionnaire to be tested by
applying it to their own colleagues in class. The participants tabulate the data gathered and make
their own conclusions on this research. This stage will be processed to give the participants
feedback. Then they will be asked to repeat this procedure, making the necessary adjustments in
order to interview the target group of a specific product. Once again, the data gathered will be
tabulated in order to generate valuable information about the product/market. The trainer
determines the subject of both researches.
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Without clear confidence among buyer and exporter from both sides may be a risky business
deal. If a garment exporter can continuously deal with only two or three buyer with buyer
Satisfaction, it will be sufficient enough to run garment production and garment export business
smoothly round the year.
3.5.7Execution of Garment Export Order:
After receiving the garment export, without wasting any time. It is essential to prepare a time a
schedule for the jobs to be done for safe execution of the export order. The main jobs for the
execution of an export order as follows:
Normally one person called garments merchandiser is engaged and given responsibility for a
particular garment export order L/C.A garment merchandiser should monitor all the jobs related
to execution of an export order. He/She should also maintain continuous liaison with the garment
exporter and garment export order.
Process of garment production quality with required quality level with in schedule time is the
most important and critical job of the garment merchandiser, Hence, through Knowledge is
essential for a garment merchandiser for successful execution of the export order. With the
change of time. Nowadays, Garments quality became very important. To maintain the produced
garments with required quality level. It is essential to start from fiber, yarn, fabric, dyeing,
printing, finishing, garment production, garment inspection and quality control, testing. Garment
washing/dyeing, garment finishing, packing etc .technical affairs. A brief discussion on that
technical area is discussed systematically. To understand the discussion of the subsequent chapter
.Theoretical and practical cooperation of others may be helpful for easy understanding.
3.5.7Negotiation Skills:
One of the most important skills a buyer and a seller must muster is the ability to negotiate. As
most high street fashion selling prices are very competitive. The greatest scope for improving
profit in a product is the reduction of cost price. There are many factors that influence the final
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cost price of a product including fabric. Garment construction, order volume, lead time, and
delivery terms. These particular issues are discussed in more detail throughout the book.
Negotiation is a process of communication and exchange through which the interested parties
make a series of demands and compromises; it involves the trading of benefits between parties.
The basic principal is to trade what is of low value to you but of greater value of the other party,
thereby reducing the cost of success to you. However the aim of a negotiation should be to
ensure that both parties are happy with the final outcome or agreement .otherwise one or the
other will not continue to participate.
The old scenario of the retailer always winning and supplier always losing result in both parties
effectively losing. Traditionally, the dominant fashion retail groups have seen the availability of
large number of supplies as a means of trading one off against another to achieve a cheaper cost
price consequently many of the suppliers who lost out ceased to do business with those retailers
again. Short-time cost price gains resulted in short term relationships with many suppliers. With
the end result being a large unwieldy and diverse supplier base operating as efficiently as it
should.
3.5.8The Process of Negotiation:
A Successful negotiation outcome does not generally occur through luck. by following a clear
process. The Process reflects the different levels of knowledge of the subject of Negotiation,
Various parties and the way they communicate at various stages in the Negotiation. The
following is an outline of steps essential to effective negotiation.
3.5.9Researching the needs of both parties:
The Greater the knowledge a buyer has of their own and the suppliers requirements. The better
able they are to construct an acceptable solution. The buyer must be clear about both the
department mark-up to be placed on the product cost price and the intended retail selling price so
that she or he can judge the viability of the suppliersproducts. She or He should also have
sufficient product construction knowledge to understand how changes can be made to achieve
better value in the product.
Frequently the supplier will make suggestion to try to bring the cost price closer to the buyer
target. However an experienced buyer can speed up the process by making suggestion which will
be acceptable to her. Lead-time is another lever for negotiation with differing operational issues
for both parties. If the buyer starts the sourcing process early enough she may have enough time
in hand to use ended lead-time as a bargaining tool.
The process of researching needs does not stop once the negotiation is underway as the body
language and facial expression of both parties will signal their reactions of the ongoing
discussion. Successful buyers will listen to and watch suppliers carefully, making judgments
about how to proceed when meeting a supplier. Closed questions can be used to generate specific
responses.
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3.5.10Preparation:
Effective preparation is also vital to successful communication. The Particular preparation
required will vary according to the nature of meeting. But some factors are always important.
Meeting should begin on time and follow a clear agenda with a realistic amount of time to
accommodate the work. Where there is an existing relationship with a supplier, a file containing
the relevant notes and documentation relating to the orders should be read prior to the meeting
and taken in for reference. Suppliers meeting are usually held in uncluttered or empty rooms or
offices to avoid any distraction from the business of the meeting. It is also usual there to be two
people from buying in the meeting. So that buyer can have an objective view point available
while personally involved in negotiation. It is essential that the buyer also has identified the
maximum and minimum positions that she will accept foe a range of factors including..
1.
Product Price
2.
Order Size
3.
Lead-time
Offer:
Having identified where the respective positions lie between them. The buyer and Supplier Can
make specific proposals to set the boundaries of the negotiation. It is unlikely that many of the
offers initially made will end up being accepted. So both parties allow for some manoeuvre. This
is the opportunity for the buyer to being trading what is of relatively low value for her but of
more value to the supplier.
Discussion:
The likely framework of a final settlement will emerge in the discussion as each side probes the
other and makes suggestions. Answers to suggestions can be revealing. With choice of words and
tone signaling interest of reluctance and should be noted as potential bargaining material. There
will be areas on which one side can move than more then the other and vice versa. It is important
for the buyer to make a note of which ones provide the greatest and least opportunities for
flexibility, for the trade off later on in the negotiation.
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It is vital to summaries at key stages throughout the negotiation when significant points are
agreed, to avoid losing early gains as to ensure that both parties understand each other. With-so
many potential variables included in the negotiation, small but significant points can be easily
forgotten unless there is a record of agreement throughout. Records will also provide both sides
with an explanation of how the deal was constructed should a particular variable become
contentious at a later date.
3.5.13Agree and Commit:
Once the parties have agreed an order, they have no communicated the details to other functions.
The supplier may need to book production space, order fabric/trimmings and source
labels/tickets. The buyer will need to inform the merchandiser of the retail selling value of the
order so that a track can be kept on spending.
3.5.14Definition Of Outsourcing:
In simple sense of view it means, to source something. But in apparel sense of view it means, the
process of selecting suppliers for manufacturing and delivering products and their components.
3.5.16Importance of outsourcing:
The importance of outsourcing in the apparel industry is beggar description. Successful sourcing
in a fast moving apparel industry requires excellent planning and co-ordination. The importance
are given below:
3.5.17Types Of Outsourcing:
Normally there are two types of outsourcing. Such as:
1. Local outsourcing
2. International outsourcing
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1. Local outsourcing: When the sourcing comes from local area called local outsourcing.
Which is also two types:
I. Vendor Nominated
II. Buyer Nominated
Vendor Nominated: But if sourcing information is not restricted by buyer than garments needs
to find the supplier to source the materials based on buyer requirements. In that case after
collecting samples of materials he needs to take approved from buyer. If fails to take approved 1 st
time than he needs to recollect that samples from supplier by developing based on buyer
requirements.
Fabric:
When fabric needs to buy garments representative should be approved from buyer. Before
buying raw material some analysis should be done from supplier and their company profile,
past export order, present export order process, capacity and main important part of price and
some data. Before buying fabric garment should judge also couple of things like fabric
characteristics, lab dip sample test.
Yarn:
When yarn needs to buy garments representative should be approved from buyer. Before
buying raw material some analysis also should be done from supplier and collect their
company profile, past export order, present export order process, capacity and main
important part of price and some data. To select the quality full yarn like: 1. Comb yarn 2.
Carded yarn.
Accessories:
When accessories needs to buy garments representative should be approved from buyer.
Before buying accessories some analysis also should be done from supplier and collect their
company profile, past export order, present export order process, capacity and main
important part of price and some data.
Buyer Nominated: If sourcing process restricted by buyer called buyer nominated sourcing. In
that case garments need not recheck or developed or approved his materials from buyer. In this
case, it is buyer who takes the responsibility to develop or approved.
International outsourcing:
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3.5.18Market Analysis:
With this exercise, the participants get what may be their first contact with a market research.
They elaborate and apply a questionnaire twice: first, they prepare a questionnaire to be tested by
applying it to their own colleagues in class. The participants tabulate the data gathered and make
their own conclusions on this research. This stage will be processed to give the participants
feedback. Then they will be asked to repeat this procedure, making the necessary adjustments in
order to interview the target group of a specific product. Once again, the data gathered will be
tabulated in order to generate valuable information about the product/market. The trainer
determines the subject of both researches.
Selection & Compare: After collecting data from varieties supplier then we should select couple
of supplier & compare those supplier. Then we should call for meeting in office to negotiate
successfully.
Price conformation: After completing meeting then both parties agree with win win situation.
The Process of Negotiation:
A Successful negotiation outcome does not generally occur through luck. by following a clear
process. The Process reflects the different levels of knowledge of the subject of Negotiation,
Various parties and the way they communicate at various stages in the Negotiation. The
following is an outline of steps essential to effective negotiation.
Researching the needs of both parties:
The Greater the knowledge a buyer has of their own and the suppliers requirements. The better
able they are to construct an acceptable solution. The buyer must be clear about both the
department mark-up to be placed on the product cost price and the intended retail selling price so
that she or he can judge the viability of the suppliersproducts. She or He should also have
sufficient product construction knowledge to understand how changes can be made to achieve
better value in the product.
Frequently the supplier will make suggestion to try to bring the cost price closer to the buyer
target. However an experienced buyer can speed up the process by making suggestion which will
be acceptable to her. Lead-time is another lever for negotiation with differing operational issues
for both parties. If the buyer starts the sourcing process early enough she may have enough time
in hand to use ended lead-time as a bargaining tool.
The process of researching needs does not stop once the negotiation is underway as the body
language and facial expression of both parties will signal their reactions of the ongoing
discussion. Successful buyers will listen to and watch suppliers carefully, making judgments
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about how to proceed when meeting a supplier. Closed questions can be used to generate specific
responses.
3.5.19Definition Of Pre-Planning:
It is the procedure followed in developing and designing a work or production of a developing
and installing a proper layout or tools. It may be involved many functions of the organization
and draws upon forecasting, product design, jigs and tool design, machine selection and
estimating to enable proper design to be made. In short, preplanning decides what shall be made
and how it shall be made.
In respective manufacture a large uneconomic output could be produced if preplanning
is omitted. It is also important in one of the operations such as setting up a new plant as
preplanning can identify and avoid probable costly errors.
Definition of Planning:
This stage decides where and when the product shall be made. It includes the sequencing
of operations viz outing and the time schedule for manufacturing viz scheduling. It also states
procedures for material planning and supplies, machine loading and deliveries. To perform as
functions properly it will need past records of performance and to control statistic which may
be obtained from pre-planning, cost control or progress.
Definition of Control:
This refers to the stage of ensuring that the planned action is in tact carried out. Control
initiates the plan at the right time using dispatching and there after control makes appropriate
adjustments through progressing to take care of any unforeseen circumstances
3.5.20Definition of Production Plan:
Production planning means planning how production work against an export order (or an order)
will progress from starting at cutting section to finishing section. Making realistic production
plan is very important because production work must be conducted in such a way that delivery
and shipment of the goods may be effected with in the specified delivery date. So, total
production work must be completed before the date of delivery of shipment.
So a Schedule or a time table must be made for each section in respect of starting and finishing
the related job against a consignment. There should be a general time frame showing dates on
which production will be commence and finish in each section.
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In making schedule for completion of a work order, a production manger must taken in to
account standard time, production target, learning time, in between process time, lot coefficients
etc. He must have the skills necessary to prepare a production plan or schedules.
Example:
3.5.21The Main Objective Of Production Plan
1. To determine capacity of all manufacturing departments and to plan systematically
coordinated and related production activities within the scope of the enterprise to meet sales
requirements.
2. To translate orders received from sales department into orders on the works department and
to ensure steady plans of production activities.
3. To find ways and means through which product manufacturing requirements such as
materials and their necessary constituents such may be available in right quality and quantity at
the right time.
4. To coordinate a number of different department groups so that a fine balance of activities may
be maintained.
5. To promote fuller utilization of plants.
6. To assist labor towards right and greater earnings.
7. To train staff in the effective performance of their duties
Types of Production Planning:
There are many types of production plan in apparel industry
Daily Production plan
Weekly Production plan
Monthly production plan
Detailed Or Factory Production Plan
Yearly Production plan
Factory Production PlanBased on the order plan of the factory, the factory manager arranges to chalk out a month- wise
production plan. Some production plan may very comprehensive. They show weekly production,
daily production, inspection & shipment dates so that production & delivery of goods may be
effected just on time. So production plans are very important.
Yearly Production Plan:
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A company generally makes a projection of work that may be available throughout the whole
year. This Projection is made based on previous business experience, preliminary negotiation
with the customer. This projection is necessary to make yearly business forecast
Generally, the basic of production plan is monthly production plan by each product. The monthly
means one month for the next. Usually we do establish the monthly plan two or three month
ahead. This plan is only recognised as schedule one and not confirmed one. The reason why the
monthly plan is popular is that the reports of the result of sale and inventory of products are
generally reported in monthly base. The production plan is not necessary making it by monthly
basis. Sometime, it is making three or two month interval. It depends on the purpose of the plan.
If the purchase plan is not clear for a month and it is clear to envisage three-month interval, then
the plan is made by three months basis.
In case of project, which means establishing production plan with assumption of sales,
modifying original plan is to be a fewer time, if the planning cycle is shorter. Then weekly
production plan is necessary to consider. However, if monthly plan is undertaking well, we do
not need to establish a weekly plan. The duration of the production plan depends on whether we
can produce the products according the original plan without much modification.
When we have discrepancy between sales forecast and production results, we need to correct the
plan in the middle of the month or to make a confirmed weekly plan for the next week.
Establishing a weekly plan is easy thinking about production plan in weekend. However, the
weekly plan is not convenient, when we compare with the monthly plan. Daily production plan is
correct, which can be applied to any interval plan, such as, weekly, monthly, and quarterly.
In any case, the important factors for establishing production plan are planning cycle, duration of
the plan, kind of and unit of the plan. All of these factors are decided according to type of
industry, type of operation, order entry performance, and type of production. We must remember
that production plan indicates us what action is necessary for proper production.
Other important factor to consider about production plan is that the most important persons of
production plan are people working in operation site. People making production plan are
supporting staff for production. It is a tendency that planning staff are apt to consider that they
are main players. Then they are apt to compel to operation site to observe their made original
plan. This idea is very wrong.
The other problem for production plan is modification. The condition of operation is varied
according to operational and market condition. Then planning section staffs are busy to correct
their original plan to be fit for the actual working condition. Once they have corrected the plan,
then they request operation site to observe the modified plan. The operation site people should
observe the production plan. However, if they must receive modified plan so frequently, they are
fed up to receive the modification. This problem is caused by planning staff. They recognise that
they are directing operation. This idea is also wrong; the main actor for production is people
working in operation site. Planning staffs should correct all relevant information and analysis the
reason of present discrepancy against original plan, through dialogue with staff and workers in
operation site. Planning staff should consider that they must serve their work to all people
working in operation site.
3.5.22Procedure of production Plan
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When an order has received, we must check the stock of products. If we have the stock, we can
deliver it to the customer. If we do not have a stock or stock level shows below standard, we
need to direct to produce the product. The manager should give instruction for production. This
procedure is carried out in a case of big component. However, parts consist of the component
usually produced a few months ago before assemble work of the component. Accordingly,
usually instruction of production is made by demand forecast or sales plan, which was made by
sales department or agents of the enterprise. For sales plan, we must remember that generally,
sales plan is far from actual sales. People in sales department are apt to make their sales plan
optimistically. It is often happened that their forecast in their sales plan is not correct, thus makes
result obliging a modification of production plan. Therefore, stock plan of parts indicates much
accurate forecast. As such, parts stock plan represents in substance as production plan.
In case of producing spare parts, which is carrying out by stock production with forecast of
orders from market, the numbering system is adopted. The parts with being put on number are
placed by order or are issued production order according to where the parts are to be produced.
Once, the production instruction comes to the production line, the line manager or supervisor
delivers the instruction to all concerned people for production in the working place.
Production:
Production System
Machine lay-out
Apparel Production System
Finishing room Management
3.5.23Production System:
Production system is the design process by which elements are transformed into useful products.
Examples of Production systemThere are different types of goods required by people and society. One type in the consumer
goods, such as, rice, wheat, tea, bread, pulse, clothings shoes, etc. They have a continuous
demand and are continuously required. A bread factory may make a survey as to the demand of
bread in a certain locality and start production of bread in that area based on potential market of
bread that the survey discovered. This is an example of production based on forecasting.
There may be another example. A mechanical workshop has the potential to produce different
types of mechanical spears. There is a railway head quarter in the vicinity and it has demand for
spears from the railway office. In such case, the workshop may start production of nuts for the
railway. Such production may be called order-based production.
The other option is that the bakery may launch production of different types of bread, biscuits
and candy in limited quantity, because, its survey may have indicated that the people in the area
have diverse taste and they have a tendency to purchase different types of bakery and biscuits.
Thus it appears that a factory may produce one or limited types of products on large scale or a
variety of products in limited scale. Thus a company may start production of goods based on
survey of market and forecasting or based on order receive from some vendors or customers.
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Individual Production systemThis system dictates small quantity of production of a large range of products. As an example, a
workshop may produce a variety of products like nuts, bolts, screws, shafts, gears, etc but each
item in a limited quantity. A bakery may start production of bread in a limited or an individual
scale in manual method of production to cater to the needs of a small number of customers.
Lot production systemIn this system products are produced in medium quantity in a medium range of items. This
system may use universal as well as semi-automatic type of machines to cater to the needs of
production. Lot production systems are found to use electro-mechanical type of traditional
machines.
Continuous or mass scale production systemIn this system, one or a limited range of products are produced on mass scale. For example, a
workshop may engage its machinery for production of screw or nut& bolts only. In such system
specialized& special purpose machinery are generally used. A bakery may use automatic bread
making production line, which can produce only half-pound & one-pound bread only.
Objective of Fabric Cutting1. To separate the parts of garments from the lays of fabric which are laid as per dimension
of the marker.
2. To get the accurate shape of the components of a garment.
3. To make the garments parts ready for sewing.
Work sequence or flow in a cutting room1.
2.
3.
4.
5.
6.
7.
8.
task and should be taken up with great care as the efficiency of the whole project largely depends
upon its planning. While planning a project each and every detail should be worked out in
anticipation and should be considered carefully considering all the relevant provisions in
advance. Project planning consists of the following important steps.
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Market Survey :
Market survey in a broad sense, is a commercial survey for the suitability of business it
provides necessary statistics helpful for forecasting planning project.
Project Capacity :
Capacity of the project must be decided considering the amount of money which can be invested
for particular type of product and how the money which can be invested for a particular type of
product and how the money can be arranged.
Selection of Site :
While selecting the site, technical, commercial and financial aspects should thoroughly be
considered. Site should be selected in two states; in first stage general location for factory
should be selected in this location. Important factors to be considered for the selection of site.
i)
General
location
of
the
factory.
Plant Layout :
One of the most important aspects of production system design is layout of facilities primary
object of these is to optimize the arrangements 4 ms and supporting services.
Design and Drawing:
After deciding the product its detailed drawing are prepared so that no doubt is left for future.
Detailed specifications for raw materials and finished product should be decided carefully along
with the specification of the machines required for their manufacture.
Material requirement :
The list of materials required for manufacture is prepared from the engineering drawings.
This list is known as Bill of materials part list.
Operation Planning:
Work of this is to select the best method of manufacturing, so that the wastage of material,
labor, machine and time can be eliminated, to have more production with less fatigue. This
work is done in two phases, namely. Method study is conducted to eliminate the wastage due to
ill directed and inefficient motions. Time study is the exact estimation of time and is very essential
for correct pricing.
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Machine loading :
Number of machines to be installed in a plant should be decided very carefully while planning,
proper care should be taken to find out the machining time for each operation as correct as
possible, so that arrangement for full utilization of machines can be made and machines
loading program is prepared accordingly.
Sub-contract consideration :
With the development of technology and specialization, it is difficult to manufacture all the
components in the same factory, due to fact that specialized machines plants and workers.
The decision about particular item, whether to purchase or to manufacture, is taken by planning
department after making a through study of the relative merits and demerits.
Equipment Requirement:
After knowing the number of equipments, their accessories and tools required, cost data can be
collected to give and idea of capital requirement.
Layout of organization is decided by considering the nature of work, type of industry size of
industry, etc and in line of above the stalls are appointed.
Material Handling:
The material handling problems must be studied before the erection of the factory building and
plant layout.
Budgeting :
Budgeting is forecasting and preplanning for a particular future period using past experience
and market trends.
3.5.26Principles Of Japanese Production Management
Japanese management is shop floor-oriented management. Specifically, it has eight underlying
principles. They are as follows:
Customer oriented
The management of Japanese companies believes that customers are royalty, and keeps in mind
that companies serve customers. In that sense, the company's objective is to provide their
products and services for customers. The idea of "product out" no longer exists. With the
information age, the idea of "market in" is the key for companies to survive.
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Work improvement through various activities such as TQC, JIT and any new working system
developed in Japan require total participation by all management and employees in the company.
Top management cannot leave the activity to his/her subordinates. Management should take the
initiative in leading the activity. Emotional commitment by top management is the key for the
success of any kind of activity requiring total participation.
Total approach
Considering the above, any activities for work improvement require total participation. If there is
a problem, it must be analysed from all angles by all people concerned with the problem.
Thinking about the situation by all concerned personnel is another key for successful work
improvement.
PDCA cycle
For successful work improvement and good maintenance to continue the result of this work
improvement, we need to follow work improvement techniques systematically. In that sense, the
PDCA cycle is useful. The cycle was invented by Dr. W. E. Deming, and is called the Deming
cycle, a positive for management. Therefore, it is also called a management cycle. The cycle
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consists of four stages: (1) plan, (2) do, (3) check, and (4) action. When we wish to have work
improvement, we should set a plan concerning how to solve the problem for this work
improvement. Then we need to carry out the plan as a countermeasure for work improvement.
Once we have started to carry out the plan, we should check to see whether the countermeasure
is effective for work improvement or not. If the result is satisfactory, then we adopt the
countermeasure as a formal work standard. To solve the problems perfectly, we need to set
permanent countermeasures. Japanese companies rotate the PDCA cycle every day at every
workplace. This is the basic process for work improvement.
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The theoretical job distribution within a unit or a division under the Western concept can be
illustrated as "A" in Fig. 1-3 in the next page. The actual coverage of the assigned jobs, however,
may leave some responsibility gap as shown in "B," mainly because job requirements do not
necessarily match the capabilities of the jobholders.
In Japanese companies, the concept of a job is different. First, a job description is not as clear-cut
as with the Western concept, although each job specifies individual responsibility. Second, a job
in Japanese companies includes both relatively narrow individual responsibility and considerably
broad common responsibility as is illustrated in "C" of Fig 1-3.
A
ACTUAL COVERAGE OF
ASSIGNED JOB
WITH THE WESTERN CONCEPT
INDIVIDUAL RESPONSIBILITY
RESPONSIBILITY GAP
JOB ASSIGNMENT
WITH THE JAPANESE CONCEPT
INDIVIDUAL RESPONSIBILITY
COMMON RESPONSIBILITY
An idea behind this loose job description in Japanese companies is the Japanese perception of the
relationship between jobs and employees. In the Western companies, jobs determine the types of
personnel they need, then the company recruits a suitable person, while Japanese companies
normally recruit without specific assignments. This means that recruited employees do not know
exactly what jobs they will get. When they join the company, they take it for granted that they
will be transferred between jobs when the need arises. In other words, Japanese companies fit
jobs and organisation with existing personnel in these companies. In the Western companies,
jobs come first and people come second, but in Japanese companies, people come first and jobs
come second.
In addition, Japanese companies consider that the overall performance of a unit or a division is
better if people (employees) work as a group having both individual and common duties rather
than working as individuals with specific assignments. The Japanese organisations operate on the
assumption that employees are not necessarily matched to the jobs they perform. Instead,
competent and experienced employees have to support their colleagues, who are less competent
and experienced, in order to achieve the group's goal.
As a result, there is no clear border between jobs, over which people cannot cross. On the
contrary, management encourages employees to cover as much responsibility as possible, thus
resulting in improved productivity through practices of group work. Under such conditions, the
assessment of work results for each employee is as follows. When an employee's job consists of
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both specified core duties and unspecified common duties, the employee can or has to do these
duties. Whatever can be achieved within working hours is regarded as his or her job, regardless
of core or common duties.
This has an important implication for job enlargement and enrichment. It is, however, not easy to
undertake job enlargement in the Western countries. If a company tries to set up job enlargement,
it often meets resistance from employees and requests for an increase in pay, because a new
assignment is added to a clear-cut job description, while an additional assignment does not make
much difference for Japanese employees as long as the whole assignment can be achieved within
eight hours.
Another distinct difference observed in an organisation resulting from these different perceptions
of a job is that Japanese companies tend to have fewer types of jobs compared with Western
companies where more types of jobs are required due to a high level of specialisation. This
difference is important to understand Japanese management. Japanese companies do not need
much coordination of their performance. Fewer types of jobs require less coordination to get
work done while a large number of highly specialised jobs need a high level of coordination,
sometimes difficult to attain.
2-2-3 Teamwork
Broad job description and flexible job assignment within organisations automatically requires
powerful teamwork among the members to carry out the tasks assigned to a unit. When a group
task is divided into individual jobs without overlapping among them as in the Western
organisations, individual employees are solely responsible for accomplishing their tasks and
there is little room for cooperative work. On the other hand, in Japanese companies a group task
is divided into individual duties as well as common duties where group efforts are required.
The Japanese way of working together is almost an instinct and part of Japanese culture that can
be traced back to a feudalistic agricultural society. Japan was originally an agricultural country.
Rice has a long history as the main product of agriculture in Japan. Rice had its origin in semitropical areas. Growing rice in a tropical area is easy, and it does not need any effort to produce
good results. Growing rice in Japan, however, is not easy because most parts of Japan are located
in temperate zones and some areas are located even in sub-arctic zones in the northern
hemisphere. It is too cold to grow rice under natural conditions without great care.
Growing rice in Japan demands that farmers set a very critical time schedule from sowing rice
seeds in the nursery, then planting, weeding, supplying water without interruption, protecting
against insects' attacks, and harvesting before typhoons rage in the rice fields. If this sequence
were delayed for a few days in the feudal age, the harvest for the year would be affected, a fact
that might lead to starvation. To keep the rice growing on schedule, Japanese farmers understood
that teamwork was crucial. Accordingly, for the Japanese, from ancient times, the co-operate
efforts to complete tasks within a short period have been the basic attitude for survival. Taking
into account this Japanese heritage, the direct transfer of the Japanese way of thinking may not
be either possible or appropriate for Western countries.
However, this does not mean teamwork cannot be transferred to Armenia. In Armenia, the
Western way of working together on a team exists in sporting activities. For instance, let us think
about an example from the game of football. It is easy to understand what benefits we have from
teamwork. Football is played by a team of 11 players. To win a game, we need to use good
teamwork. Each player has a position, such as goalkeeper, forward, and defence, which can be
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regarded as core duties assigned to each player. What is important during the game is that they
do not stick to their core duties and they are flexible enough to move into other areas of the field
and play additional roles according to the progress of the game. Each player is aware of this need
and trained to do so whenever necessary. A similar sense and attitudes in carrying out jobs as a
team is definitely needed to make for a successful broad job description and flexible job
assignment in the working process.
Initiative and Creativeness
With a broad job description, individual employees can expand their coverage by their own
initiative since there is no clear demarcation among the group members and initiative is strongly
encouraged. The encouragement of initiatives from individual employees is based on the idea
that every employee has great potential and these potentials can be realised by showing initiative.
To show initiative, creativeness is needed from employees. Even when an employee is willing to
show his initiative and perform more duties or perform duties better, he may not be able to do so
unless he improves work methods or work systems since he normally has sufficient duties
originally. Creativeness discussed here is not a great invention, but something that can be a
minor improvement. The accumulation of these minor improvements by every individual counts
in a business operation.
Both initiative and creativeness is representative of positive work attitudes by employees. In
order to encourage employees to show initiative and be more creative, organisations need to
create an atmosphere and environment where employees feel like doing this. For example, can
leaders and organisations allow mistakes and errors, which sometimes occur because of initiative
and creativeness?
Whether employees show their initiative in improving their method of working, and performance
or they just do whatever they are told, to do may appear to be a minor difference in itself;
however, it has a great bearing on the corporate culture, which in turn greatly influences the total
performance of the company.
Information Sharing
Successful information sharing is important for good teamwork. Group members help each other
effectively only when they have necessary information about the activities of the group and other
group members. Because the industrial countries are entering an information-oriented society,
the Western countries seem to show interest and concern for the sharing of business information
within their organisation.
For good information sharing, superiors in workplaces have a great responsibility to keep all
employees well informed. They have to organise regular meetings, however brief they may be, in
which they should inform employees about policies and decisions made by the management to
their members. When a meeting is held, they should also discuss any present issues, as progress
of the group achievement and problems discovered, with subordinates. He or she also needs to
create an atmosphere in which open communication is encouraged and maintained within the
group.
Visual displays are also important to allow good information sharing in workplaces. We see
many displays hanging on the walls or dangling from the top of the building. All these displays
should be easy to read. When we see the displays, we can understand what is important for the
present operation or how the factory is operating as compared with their original action plan.
Attentiveness and Alertness
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Attentiveness is a mental attitude, which cares about others. Company operation is the joint
effort of various departments, divisions, sections, and individual employees. When every group
member shares both individual and common responsibilities, completing individual
responsibility alone is not sufficient.
Attentiveness has to be practiced to enable other group members and associated employees and
sections to perform efficiently and effectively. For instance, a production operator can and should
do his job in a manner, which will help operators in the next process accomplish better work.
The following worker's attitude stems from attentiveness. In the factor of automobiles assembly,
a worker is engaging in making parts for cars. He reminds himself that he must produce the right
amount of good quality of parts, now when the workers in the next process really need them. He
also keeps in mind that he places his products where it is most convenient for the workers in the
next process. This example shows an origin of the KANBAN system, which was not born
without an attitude of attentiveness and alertness on the part of the workers.
The managements seeks for increase productivity, as a result, they force workers to produce
maximum amount of products. This idea should be eradicated and the management should
consider they should produce products with enough amount of market. In other words, system of
production should be changed from pushing products to pulling out products. This idea is
important to keep good process control for production. The management should declare the
maximum amount of products in each day. They when the workers completed the production
with this amount, then the production of the day are completed. The workers should not product
more amount of products.
Attentiveness too is directed, not only to group members and other sections in the company, but
also to customers. Paying sufficient attention to customers is a basic positive work attitude in any
business. This is why attentiveness is linked to "Basic." To be attentive, we have to be always
alert in learning what we find necessary to do. Again, minor examples of attentiveness and
alertness count in improving a company's operation if they become part of every employee's
daily work. For better quality work, attentiveness and alertness are essential. We must enhance
this way of thinking in employees to create an atmosphere in which employees are encouraged to
generate and maintain attentiveness and alertness.
Work Ethics
Good Japanese management requires every employee to have a strong sense of self-discipline.
The discipline in companies starts from observing the company's regulations, in particular
"punctuality." Punctuality is the basis of all disciplines since most business activities are
measured by time, including production, sales, service, etc. As the saying goes, time is money in
business.
Another aspect of work ethics is a sense of responsibility among employees, which may be onestep higher than mere work discipline. Do you try to finish your current work, even after working
hours? Do you try to catch up with your colleagues, even with overtime, if your delay causes
delay for the group work? Each aspect produces rather similar results in work goals. However, it
makes a great difference whether all the employees share a strong sense of responsibility or they
just do not care.
Each action involved in both Basics and Work Ethics, is a simple detail or a single action, and it
is certainly does not make an enormous difference for the company's overall performance.
Nevertheless, Japanese companies attend to these details with much zest, believing that the
accumulation of these details puts a company on top, well above the competition.
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Mutual Trust
Mutual trust can and should be established slowly but steadily by showing trustworthiness in
daily actions. Management has to treat labour unions as partners by regularly consulting unions
on matters, which affect the well-being of union members, and sharing information on the
company's operational performance. Managers have to display their commitment to work before
they require the same of their subordinates.
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Because entrepreneurs expect to increase their own profit by increasing productivity, and, on the
other hand, workers are opposed to having any extra hard work without incentives, we cannot
expect any productivity improvement Armenia left from Soviet Union and became independent
country. At the same time, system of economy had been changed from socialism to market
economy. Under market economy, customers are the most precious element of management.
Without customers, we cannot manage enterprise. We need to understand the difference of
socialism and market economy from the following formula.
PRICE = COST + PROFIT Formula 1
PROFIT = PRICE COST . Formula 2
Under socialism economy, Armenian people might be accustomed to consider that price could be
determined by the governmental authority including cost and profit. Under such condition, what
management must do for their management was to submit a well-written planning paper of new
production to the governmental authority to obtain approval of new products. Under such
circumstance, once they could obtain the approval for production from the government authority,
they could produce products without considering customers request. This idea shows the
formula 1 above. Price can be set with cost and profit.
Under market economy, the above idea cannot be obtained consent from customers, which
means new products cannot sell well even though the management have written marvellous wellwritten planning paper for the new product. For obtaining profit, we need to consider a suitable
price for the product. Then we need to consider reducing cost of production. In order to reduce
cost of production, productivity improvement is indispensable.
History of the productivity movement
When the Japan Productivity Centre, (JPC) was established in 1955 as a core institution to
enhance the productivity movement nation-wide, circumstances in Japan were very similar to
those described above. Many Japanese believe that during the transitional period of entering an
information- oriented society, JPC had and has a large role in the success of Japanese economics.
Accordingly, from the point of modern management, it is worth learning the real meaning of
productivity.
JPC is an institution for promoting the productivity movement in Japan. Its board members
consist of representatives from three areas: management group, labour unions, and academic
circles. After JPC declared its intention of promoting productivity, they disclosed "Three Guiding
Principals of Productivity. The idea was received diversely. Workers recognised it
was a bad excuse for hard work, while management understood it was a good excuse to increase
their profits. However, both perceptions were far different from the real meaning of productivity
improvement.
We have learned already about gain sharing in productivity improvement. However, from the
point of view of modern management, let us consider it again. We usually understand that
productivity is the relationship between input of materials and output of products. This idea is
an extremely narrow technical definition of productivity. Think about this technical aspect,
productivity can be measured quantitatively by size, length, and numbers of units or in amount
of monetary unit produced (dram, dollar, or yen). We call this idea physical productivity and
value productivity.
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We quote this from a report of the Rome Conference "On the Purpose and Program of the
Productivity Movement" organised by the European Productivity Association. "Productivity is
above all, an attitude of mind that seeks the improvement or continuous betterment of what
exists. It is a conviction that one can do better today than one did yesterday. Further, it is the
constant adaptation of our economic activities to changing conditions, and constant efforts to
apply new techniques and methods. It is a firm belief, in human progress."
Basic meaning of production
1-1 Essential function of factory
The following are an explanation of the essential function in factory. To understand the
function easily, let us think about the comparison with water supplying system is attached.
Factory in which material is converted into goods
(1) Natural Water Water purification plant Tap Water
(2) Raw material Factory, Mill or Plant Products or Goods
(3) Input raw material Control system for production Output (Products)
(4) Converting process (Production: Value added)
(5) Control system for conversion (Productive management)
The above explanation emphasises the following three points, those that are essential of
operation in factory. These guiding principles are as follows.
(1) Input, raw materials are converted into output as final products through converting process
(factory), which is a course of system by combining machines and equipments such as
machines, devices, apparatus, and instruments.
(2) Converting process requires a control system in which all facilities for conversion are
running normally.
(3) Converting activities require a control system in which all converted materials are processed
into final products.
In conclusion, the factory is a kind of theatre in which a producer (actor) handles (play)
converting process (drama). We need to remember the converting work is value up process of
raw material. Therefore, converting raw material into products means that factory is doing valueadded activity.
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interest between buyers and sellers and then making satisfaction both customers and produces. In
fact, the factory is the place where adjustment of advantages is undertaken. In order to avoid any
misunderstanding, we must understand clearly that the factory management does not request
equal responsibility for both producers and consumers. Suppose both sides are happy, the
enterprise can manage its operation satisfactory.
Structure of factory
If you visit a factory, you may feel that the factory seems to have no particular system at a
glance. However, the factory is actually controlled by production control system properly. Both
those who have never visited factory before as well as those who have been working in a factory
for a long time, will receive the same impression on their first factory visit. For example:
The factory is dark and noisy
Location of machines seems to be in distorted
Goods in process are piled up
Operators work have hard working
Forklifts are running busy
We have such impressions always when we visit a factory at first time. It is however, impossible
to understand the factory, even if we gather such impression as many as possible. In fact, the
more enterprise visit gives us the more vague impressions for the factory operation. As we visit
the more number of factories, we have more confusion for the factory operation. The reason why
we have such confusion is that we do not analysis systematically of our impression for the
factory. As we list our impression at random, this gives us such impression in general that the
factory is like a jungle, where we cannot see far distance. The factory is far different from a
jungle. There is no maze or labyrinth in the factory. If it was the same as a jungle, raw materials
brought into the factory, could not be converted into final products according to schedule. On the
contrary, a factory runs in a systematic manner. Under such conditions, raw materials will not be
buried in a wrong place and unexpected products will not appear.
For that reason, we cannot shout, the factory is the same as a jungle. The factory is arranged by
using production control systems. Any operation, even if it seems to be running without any
order, it is carried out by systematic control. Otherwise, the factory cannot deliver suitable
products for sale into the market. Any factories whether it is big scale enterprise or a cottage
industry, they run their management according to the procedure we have learned from the case
study; PT. Slamet rattan. We need to learn again about the business procedure what Mr. Slamet
received an order and made a chair. This procedure is the basic of production management.
Reviewing the total output manufacturing factories, we can see that a few big enterprises can
produce more than half of the National output of industrial products. This tendency is seen in any
developed country like Japan. However, it is important to note that small enterprises contribute
to the national economy by supporting big enterprises as subcontractors. This relationship is very
important for a systematic industrial development. Fostering supporting industry is the key of
industrial development in any countries.
In Japan, big enterprises like Toyota, Matsushita, Sony, Panasonic, Bridgestone are well
known. They have their management in overseas business with very helpful support of various
types of subcontractor. These subcontractors are referred to as supporting industries. Without cooperation from supporting industries, Japanese big enterprises could never have success stories.
The role of small and medium sized industry is very important in every country. Developing a
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healthy small and medium size industry (SME) in this nation is your responsibility, as young
engineer. For the prosperity of the nation, promoting manufacturing industries especially in the
area of supporting industry is much important than developing the tertiary (third) industry.
Because, the tertiary industries like service industry or the distribution industry, they can only
exist in a healthy economic condition, which is maintained by the second (manufacturing)
industry. Taking into account the above-mentioned fact, we can understand that the industrial
production is one of the most important key of our human life. In that sense, production
management is important.
As young engineers should remember that, the second industry including agro-industry is the
essential vehicle for economic success in this nation. We should contribute these areas since
many sophisticated electronic instruments are utilised in this field. On the other hand, once the
second industry has settled in a stable condition, the tertiary industry can be developed. In this
field, telecommunication will display an important role, as we have entered into the information
age.
Three vital points in studying factory
If we compare a factory with a symphony orchestra, a building of the factory building is like a
music hall. This equipped with machines with systematic arrangement, which can be compared
with representing instruments in the music hall. The workers in the factory are like players of
orchestra. Thus, a music hall consists of a building, instruments, and players, which are
recognised as hardware, but symphony itself is an integrated use of music and the orchestra. The
following are three vital points to understanding a factory
(1) Final products
Depending on its main final product, a factory has different building and machines. We can
see the difference between cement factories and sawmills. We can examine the property of
factory to determine its management purpose of the factory.
(2) Facilities and their layout
The factory consists of various machines and facilities. Layout means arranging of
machines and facilities for effective production. In case of an orchestra, instruments are
located with regard to sound effect, whereas in the factory, the location of machines is
arranged to minimise the distance of transportation of production in process. We should
remember that transportation of production could not make any profit but only generate the
cost of production. The activity of value added is only carried out inside the machines.
(3) Operator skill and work attitude
A good factory should have skilful employees whose work attitudes are positive. Through
their rhythmical working manner, we can identify an active factory. The of workers' moral
can be identified by their attitudes which is very important factor in evaluating the factory.
In conclusion, for easy understanding of a factory visiting, we should study at the final products,
product variety and quality, facilities and their layout as well as maintenance condition and
workers' moral and skill.
Apart from these vital points in studying a factory, for the evaluating of a factory, we must also
study correlation between output and number of workers and newly introduced machines, since
we are apt to be overwhelmed by big production and new sophisticated machines. Even persons
who have a rich experience in factory assessment with a good understanding of new machines,
sometimes they have difficulties of understanding financial and engineering issues. In that sense,
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engineers, who wish to be good management staff, should learn the basic knowledge of
administrative matters of the enterprise, including financing, accounting, and industrial relations.
Process item
A
A1
Action to be taken
Material cost
Remarks
Adjustment
index
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with
price
A2
A total
B
C
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(B-2) Parts require long time for delivery should place an order with enough periods
until the repair work starts.
(B-3) Ordinary parts, which are available to purchase any time immediately, should set
a standard minimum quantity of inventory. Check the minimum. If the
minimum line exceeds to low level and then the order will take place.
(C) Articles of consumption:
Normally, if the factory is located in industrial area, most of the articles of consumption are easy
to buy. Those items are steel wire, sand paper, adhesive agent, waste cloth for cleaning
the machines. Do not keep a stock of these articles as inventory, and place an order
whenever it is necessary. This measure is resulted much low cost maintenance.
(D) Replacement parts:
(D-1)
Store the necessary quantity of parts. The quantity is set by the yearly working
plan.
(D-2) Kinds of stocking parts are as follows: Control by production section (Daily consumable parts) Wire cloth and cloth for machine
cleaning, felt, canvas, and carrier rope. Control by maintenance section (Periodical
changing parts)
Conveyor-belt, kiln brick doctor blade, drive chain, conveyor chain, and special type of
bearing for particular machine. Strict inventory control gives us a remarkable result of
good maintenance work, together with reducing maintenance cost and improving
productivity of maintenance work. Because of good inventory control, operators
concerning maintenance work can understand the quantity of stock and they do
understand where the spare parts are stocking. Thus, lead them to take necessary stock
within a few minutes from the warehouse to the site, where the parts are necessary to
exchange.
How to keep the good maintenance work
The maintenance is to keep systems, devices, and equipment in good order and adjustment so
that they can perform their function fully and completely at any time required. It is necessary to
achieve these objectives most efficiently. What we say efficiently means to achieve the
objectives at a cost as low as possible, In other words, we should improve productivity, The
purpose of the maintenance of machines, equipments it to keep the function of plant work well at
a reasonable maintenance const with adjusting the capability of the equipment to meet the
production purpose. Therefore, maintenance engineering must attend on fully lives on
machineries as following five (5) items.
(1) Plan layout and design
(2) Construction and installation
(3) Maintenance, repairs and replacement
(4) Operation of utilities
(5) Plant protection
The more detail explanation on these five items will appear in the lesson of maintenance in this
text.
Relation between maintenance and production is as following illustration shown as follows:Maintenance section
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Success
of
Maintenance
Production
Section
However, the idea above-mentioned is wrong, anyone working in the factory is concern in plant
maintenance. Since the work efficiency, is closely connected with productivity improvement, an
idea of integrating plant maintenance into plant operation or vis--vis become popular in the
enterprise. The idea has been recently fostered and it becomes in popular among engineers, those
who are working engineering part in the plant. The productivity maintenance was born in
accordance with such original idea. We must remember that good efficient work is closely
connected with good maintenance. Therefore, it emphasis on greatly that keeping an efficient
working condition through good maintenance is the key of productivity improvement. Every
body should work for good maintenance in the plant. In that sense, plant engineers including
electronic engineers should have knowledge of accountant that is the source of information
regarding the factory operation. We can only achieve good management of productive
maintenance if we establish a well-arranged productive maintenance plan with focusing on
economical efficiency about factory operate.
Plant management 2
We have learned the basic of plant management. Now, we will learn the plant management much
in depth in this lesson. We must remember that it is indispensable to learn plant management in
depth, as trainers of the production management in Armenia, if they wish to be a good trainer for
production management.
Importance of plant engineering
In the past, maintenance work existed as independent section for keeping facilities as good
condition. This work is, needless to say, important. However, the role of maintenance becomes
much complicated in the modern industry. Then the maintenance becomes a management skill as
plant engineering. Let us look at the plant engineering precisely in this section.
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Target should be
highest possible
Objective of PM =
Lowest maintenance costMeasures should be taken with
minimum cost
(2)
CM (Corrective maintenance).1957S
With a view of improving the reliability, the need for maintenance, safety features of the
equipment and any defective parts of the existing equipments should be modified or
remodelled (change in materials, forms, etc,) under a certain plan and in the most aggressive
manner, so that the deterioration or break-down of the equipment can be minimised. The
ideal will be of making the equipment, which is no need for maintenance. This way of
approach is called as corrective maintenance.
(4) BM (Break-down Maintenance)1958/9s
When an equipment or device becomes to show a lowering of its function or comes to stop
its functions (stoppage in operation due to breakdown) then repairs or replacement will have
to be made. This sort of post-maintenance should be applied for an equipment or device,
which can be renovated or replacement at a lower cost. This measure is much economical
rather than to make preventive maintenance. The old style of post-maintenance was carried
out without seeking the cost of maintenance and under no exact plan or in an easygoing way.
Breakdown maintenance mentioned under this paragraph entirely differs from the old style
post-maintenance.
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Life cycle
1st stage:
Establishing concept of
system and determining
the specification of the
equipment.
2nd stage:
Design and development
of system of the
equipment
3rd stage:
Manufacturing and installation of the equipment
4th stage:
Actual use for operation
Maintenance
Method of system
Analysis of system
(Programming of plant
investment)
Investigation
Study
Design
Manufacturing
Installation
Operation
Management system
(Operation)
Maintenance
Disposal
MP
Maintenance
prevention
Invented at
1960
Starting
its Upon planning
activity
and installing
facilities
Objective:
Selecting
of
Improvement
facilities:
PM
CM
Productive
Corrective
maintenance
maintenance
1954
1957
In operation of Upon analyzing
facilities
causes of troubles
Eliminating of Improving
The result of
operational
facilities in order the activity:
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reliability
Objective:
Improvement
of
maintainability
Low
High
Reliability
MP
(Maintenance
prevention)
to
lessen Reliability
deterioration
of engineering
equipments and was established
extend the life of
facilities,
equipments and
machines
Preventive
maintenance,
planned
engineering
work
Improving
facilities in order
to
simplify
procedures needed
for
daily
maintenance,
inspection,
and
repair.
Total
c
Low
High
Extent
of
Maintenance
PM
(Preventive
maintenance)
Total
a
c
Cost
mistakes and
mishandlings
Daily
maintenance to
prevent
deterioration;
Lubrication,
Cleaning,
Adjustment,
and
Replacement
Cost
Total
a
c
Cost
Improvement in
view
of
economic work
efficiency
(Improvement
in economy)
Encouragement
of tests and
acceptance of
inspections in
order to reduce
the troubles, to
attain
minimum
operational
mistake and to
prevent
deterioration of
the facilities
Selection
of
facilities
to
make
easy
repair can be
done,
easily,
effectively,
rapid
and
minimum cost
Extent
of
Improvement
CM
(Corrective
maintenance)
a: Maintenance Cost
b: Equipment manufacturing cost
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The result of
the activities:
Maintainability
engineering
Engineering
with economic
mind
(Engineering
economy)
c: Loss by Deterioration
d: Cost for improvemen
3.5.30Management Of Job Repair
The poor productivity caused by equipment is called as loss. Repair jobs are important to recover
the loss. However, a cost is required for repair job. The balance between such cost and an
advantage factor to improve productivity should always be considered in advance. Any
equipment will get to be deteriorated as far as it is used for production and finally, it will have to
be stopped. Any equipment, which cannot be operated, should be repaired as soon as possible.
However, it should be studied how much cost it will be to repair the equipment and we should
check whether the equipment could be repaired before the final breakdown. If we find out that
prior repair is necessary, accomplished it by setting a maintenance-working standard.
Any repair jobs beyond allowable repair cost is, needless to say, not economical. It is
important to find out the right time of repairing equipment so that we can keep our maintenance
cost as low as possible.
Hence, the following procedure is important.
(1) Confirming that equipments have reached its limit of repairing
(2) Forecasting the time, when equipment will reach its limit of repairing
The forecasting mentioned above are based on the degree of deterioration, which can be
examined through measurement of wear and tear of various parts of equipment. In other words,
forecasting is made based on the record indicated on the history records of the machine. Careful
attention should be directed to daily and periodical inspection lists. The criteria of responsibility
of small scale repairing are to be given to operation work field, in which operators will repair
machines, if they can do it within their ability. If the operators fail to repair machines, because
the work is beyond their ability, they will request the repair to the maintenance section by issuing
a job order request to undertake the repair job. To classify the repair job into two categories are
very important. If we establish such rules, People who are working at operation field will use
machines carefully in order to make avoid any kinds of damages. Thus, result to decrease
number of repair jobs for maintenance. We must consider the following fact, which can be seen
in many working shop floors in factory. The fact is that people working in operation site
recognise repair workers as poor repair men because they have too many small-scale machine
stoppages. On the other hand, maintenance people recognise operators as people of breaking
machine all the time. Under such situation, any cooperation for work improvement cannot be
promoted. We must avoid such condition. To solve the problem, best measure is to set rotation
between operators and repairmen from time to time. Through this measure, both sides of workers
can understand the other side people and the mind of respect each other can be generated.
3.5.31Banking And Shipping Procedure In A Garment Industry:
After negotiate each other about price than both parties go to follow couple of banking and
shipping procedure to make ensure for both merchandise for buyer and money for garments. The
gradual banking and shipping procedure are given below:
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Banking Procedure:
Document
Submission to
Bank
Procurement BB L/C to
Supplier
Payment
Shipping
Production Monitoring to
Supplier
Finishing
Sewing
Cutting
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In that case garments representative go for monitoring each matter which are doing by his
nominated supplier as well as ton get confirmation to take those delivery on time.
After that garments go for doing all his required jobs based on his buyer wish like cutting,
sewing, finishing and shipping.
Documents submission to Bank:
After completing those regular jobs up to shipping buyer send garments some confirmation
documents which are required to collect his money. Then garments representative submit
those required documents towards his nominated bank.
Payment:
After checking all the relevant documents bank are become ready to pay garments required
money.
Based on above steps banking procedure are completing between buyer and supplier.
3.5.32shipping Procedure:
Shipping is a part of Operations Management (OM) is systematic design, direction and control of
process that transform inputs into service and product for internal and external customers. Our
garments sector is running without proper practice of Shipping Procedures. Management of
garments industry is not clearly aware of Shipping Procedures. But, proper practice of Shipping
Procedures can reduce the cost to ensure sustainable growth of the company.
TQM of shipping is defined as an integrated approach of management by which quality services
can be ensured to the customers. Shipping companies are service oriented and satisfaction of
customers by providing excellent services is the prerequisite of shipping business. Shipping
Procedure is required for ensuring customers satisfaction started from exporter door ended to
importer door and cost reduction from suppliers as well as buyers account.
Objectives:
Clear understanding of Shipping Procedures like documentations, operations, communications,
negotiations and marketing of shipping and its modern tools techniques required for garments,
export and import companies so that participants can use in their working place to ensure
sustainable smooth growth of the company.
Process:
When shipping a product overseas, the exporter must be aware of packing, labeling,
documentation, and insurance requirements. It is important that exporters ensure that the
merchandise is:
Packed correctly so that it arrives in good condition;
Labeled correctly to ensure that the goods are handled properly and arrive on time at the
right place;
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Most exporters rely on an international freight forwarder to perform these services because of the
multitude of considerations involved in physically exporting goods.
3.5.33.Shipping To Bangladesh:
Directory of international shipping and moving companies that provide low cost shipping and
moving to Bangladesh. Use our directory to find the lowest shipping cost to: Chittagong,
Dhaka, Khulna, Sylhet, Sylhet!
Find Shipping Companies:
Careful services from international shipping companies from all over the world offered. Just
specify your interested destination and find local shipping company for the most convenient
shipping and moving worldwide
Shipping to Bangladesh
We guarantee that companies listed in our International Container Shipping Directory provide
safe and timely shipment for your goods in containers and meet
For more individual shipment you can opt personal container services and for more safe
movement you may opt sealed container services. Please make use of our International Container
Shipping Directory to find the Container Shipping company in Bangladesh that best meets your
specific needs.
Haque and son co.Ltd
Company's History
Haque & Sons Ltd. is the largest Crew Management & Shipping Company in Bangladesh
established in the year 1948. Over the past four decades it has risen to become a leading force in
its field by adhering to an unequivocal commitment to quality, reliability, efficient management
and cost effective solutions. We are respected for our pioneering efforts in the promotion and
implementation of safety of life at sea and customer satisfaction.
Our Background
Haque & Sons Ltd. was founded in Chittagong, Bangladesh by the Late Al-Haj Abdul Haque
Chowdhury originally established as an Independent Construction, Oil mill & Shipping Business
but has evolved into a powerful and dynamic organization providing crew management and
shipping related services worldwide. Our international client base boasts the most renowned
companies from the shipping sector based in Hong Kong, Japan, Singapore, Greece, Norway,
United Kingdom, and India among others.
It's Chairman and Managing Director Mr. E.H. Chowdhury, son of the late Al-Haj Abdul Haque
Chowdhury, has been managing the affairs of the company since 1967 and has well over 30 years
of valuable experience in the shipping industry. Mr. Chowdhury has single handedly turned the
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company into the premier crew management and shipping company in Bangladesh at present
handling over sixty vessels of various types including:
Containers
Chemical Tankers, (Type I & II)
Crude Oil Tankers
Bulk carriers, ( Capsize, Panamex, Handy Max)
General Cargo
Pure Car carriers
Log Carriers
Our head office is based at Chittagong with two regional operating units respectively in Dhaka &
Khulna Bangladesh. We also have regional representative office in Japan, Canada, Myanmar and
Pakistan as well as mutual agreements with various local agents in North America to act on our
behalf for our North American activities.
Haque & Sons Ltd is dedicated to satisfying needs of customers by providing high quality
services achieved through a team of experienced seafarers and their highly proficient shore based
counterparts. Our shore-based staff consists of ex-seafarers (Masters, Chief Engineers, and Radio
Officers) and experienced managers who have extensive knowledge and perceptive of the
international shipping market.
40' M.G.S.S. Hi-Cube Refrigerated Container
Exterior
Length
Width
40'-0"
8'-0"
12.192 m
2.438 m
Height
9'-6"
2.896
m
Interior
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Length
37'-11 55/64"
11.585 m
Width
7'-6
15/32"
2.290 m
Height
8'-4
5/32"
2.544
m
Nominal
Cubic Capacity
2,384 cu.ft.
67.5 cu.m.
Cooling capacity
Air exchange rate
w(kcal)/C(F)
CFM
cu.m/hr
11,000(9,460)/1.7(35)
0-106
0-180
6,280(5,400)/-18(0)
10,550(9,073)/2(35)
0-142
0-240
6,150(5,289)/-18(0)
Weight
MGW
74,960 lb
34,000 kg
Type
MHI
CPE16-2BAIIIEV
CARRIER
69NT40-551-501
TARE
10,490 lb
4,760 kg
Temp.
control precision
+-0.25C
+-0.25C
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Time and action plan, a professional well managed and proactive T&A calendar is kept up to
date for each order and style, updating and evaluating those plans endures the foresight of any
potential problems as well as allowance for solutions before any issue becomes unmanageable.
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3.5.36Freight Forwarders
An international freight forwarder is an agent for the exporter in moving cargo to an overseas
destination. These agents are familiar with the import rules and regulations of foreign countries,
the export regulations of the U.S. government, the methods of shipping, and the documents
related to foreign trade. Export freight forwarders are licensed by the International Air Transport
Association (IATA) to handle air freight and the Federal Maritime Commission to handle ocean
freight.
Freight forwarders assist exporters in preparing price quotations by advising on freight costs,
port charges, consular fees, costs of special documentation, insurance costs, and their handling
fees. They recommend the packing methods that will protect the merchandise during transit or
can arrange to have the merchandise packed at the port or containerized. If the exporter prefers,
freight forwarders can reserve the necessary space on a vessel, aircraft, train, or truck. The cost
for their services is a legitimate export cost that should be included in the price charged to the
customer.
Once the order is ready for shipment, freight forwarders should be review all documents to
ensure that everything is in order. This is of particular importance with letter of credit payment
terms. They may also prepare the bill of lading and any special required documentation. After
shipment, they can route the documents to the seller, the buyer, or to a paying bank. Freight
forwarders can also make arrangements with customs brokers overseas to ensure that the goods
comply with customs export documentation regulations. A customs broker is an individual or
company that is licensed to transact customs business on behalf of others. Customs business is
limited to those activities involving transactions related to the entry and admissibility of
merchandise; its classification and valuation; the payment of duties, taxes, or other charges
assessed or collected; or the refund, rebate, or drawback thereof.
Packing
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Exporters should be aware of the demands that international shipping puts on packaged goods.
Exporters should jeep four potential problems in mind when designing an export shipping crate:
breakage, moisture, pilferage and excess weight.
Generally, cargo is carried in containers, but sometimes it is still shipped as break-bulk cargo.
Besides the normal handling encountered in domestic transportation, a break-bulk shipment
transported by ocean freight may be loaded aboard vessels in a net or by a sling, conveyor, or
chute, that puts an added strain on the package. During the voyage, goods may be stacked on top
of or come into violent contact with other goods. Overseas, handling facilities may be less
sophisticated than in the United States and the cargo could be dragged, pushed, rolled, or
dropped during unloading, while moving through customs, or in transit to the final destination.
Moisture is a constant concern because condensation may develop in the hold of a ship even if it
is equipped with air conditioning and a dehumidifier. Another aspect of this problem is that cargo
may also be unloaded in precipitation, or the foreign port may not have covered storage facilities.
Theft and pilferage are added risks.
Buyers are often familiar with the port systems overseas, so they will often specify packaging
requirements. If the buyer does not specify this, be sure the goods are prepared using these
guidelines:
One popular method of shipment is to use containers obtained from carriers or private leasing
companies. These containers vary in size, material, and construction and accommodate most
cargo, but they are best suited for standard package sizes and shapes. Also, refrigerated and
liquid bulk containers are usually readily available. Some containers are no more than semi-truck
trailers lifted off their wheels, placed on a vessel at the port of export and then transferred to
another set of wheels at the port of import.
Normally, air shipments require less heavy packing than ocean shipments, though they should
still be adequately protected, especially if they are highly preferable. In many instances, standard
domestic packing is acceptable, especially if the product is durable and there is no concern for
display packaging. In other instances, high-test (at least 250 pounds per square inch) cardboard
or tri-wall construction boxes are more than adequate.
Finally, because transportation costs are determined by volume and weight, specially reinforced
and lightweight packing materials have been developed for exporting. Packing goods to
minimize volume and weight while reinforcing them may save money, as well as ensure that the
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goods are properly packed. It is recommended that a professional firm be hired to pack the
products if the supplier is not equipped to do so. This service is usually provided at a moderate
cost.
Labeling
Specific marking and labeling is used on export shipping cartons and containers to:
The overseas buyer usually specifies which export marks should appear on the cargo for easy
identification by receivers. Products can require many markings for shipment. For example,
exporters need to put the following markings on cartons to be shipped:
Shipper's mark;
Country of origin (U.S.A.);
Weight marking (in pounds and in kilograms);
Number of packages and size of cases (in inches and centimeters);
Handling marks (international pictorial symbols);
Cautionary markings, such as "This Side Up" or "Use No Hooks" (in English and in the
language of the country of destination);
Port of entry;
Labels for hazardous materials (universal symbols adapted by the International Airi
Transport Association and the International Maritime Organization); and;
Ingredients (if applicable, also included in the language of the destination country).
Packages should be clearly marked to prevent misunderstandings and delays in shipping. Letters
are generally stenciled onto packages and containers in waterproof ink. Markings should appear
on three faces of the container, preferably on the top and on the two ends or the two sides. Ant
old markings must be completely removed from previously used packaging.
In addition to the port marks, the customer identification code, and an indication of origin, the
marks should include the package number, gross and net weights, and dimensions. If more than
one package is being shipped, the total number of packages in the shipment should be included
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in the markings. The exporter should also add any special handling instructions. It is a good idea
to repeat these instructions in the language of the country of destination. And use standard
international shipping and handling symbols.
Customs regulations regarding freight labeling are strictly enforced. For example, many
countries require that the country of origin be clearly labeled on each imported package. Most
freight forwarders and export packing specialists can supply the necessary information regarding
specific regulations.
3.5.37Documentation
Exporters should seriously consider having the freight forwarder handle the formidable amount
of documentation that exporting requires as forwarders are specialists in this process. The
following documents are commonly used in exporting; but which of them are necessary in a
particular transaction depends on the requirements of the U.S. government and the government
of the importing country.
Air freight shipments are handled by air waybills, which can never be made in negotiable
form
A bill of lading is a contract between the owner of the goods and the carrier (as with
domestic shipments). For vessels, there are two types: a straight bill of lading which is
nonnegotiable and a negotiable or shipper's order bill of lading. The latter can be bought,
sold, or traded while the goods are in transit. The customer usually needs an original as
proof of ownership to take possession.
A description of the goods in general terms not inconsistent with that in the letter of
credit.
Identifying marks and numbers, if any
the name of the carrying vessel
evidence that the goods have been loaded on board
the ports of shipment and discharge
the names of shipper, consignee and name and address of the notifies party, if any
whether freight has been paid in advance or is payable at destination
the number of original bills of lading used
the date of issue
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Commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often
used by governments to determine the true value of goods when assessing customs duties.
Governments that use the commercial invoice to control imports will often specify its form,
content, and number of copies, language to be used, and other characteristics.
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references. The list is used by the shipper or forwarding agent to determine the total
shipment weight and volume and whether the correct cargo is being shipped. In addition,
U.S. and foreign customs officials may use the list to check the cargo
An insurance certificate is used to assure the consignee that insurance will cover the
loss of or damage to the cargo during transit.
Free on Board (FOB): Your responsibility ends the moment the contracted goods are placed on
board the ship, free of cost to the buyer at a port of shipment named in the sales contract. 'On
board' means that a 'Received for Shipment' B/L (Bill of Lading) is not sufficient. Such B/L if
issued must be converted into 'Shipped on Board B/L' by using the stamp 'Shipped on Board' and
must bear signature of the carrier or his authorized representative together with date on which the
goods were 'boarded'.
Cost and Freight (C&F): You must on your own risk and not as an agent of the buyer, contract
for the carriage of the goods to the port of destination named in the sale contract and pay the
freight. This being a shipment contract, the point of delivery is fixed to the ship's rail and the risk
of loss or of damage to the goods is transferred from the seller to the buyer at that very point. As
will be seen though you bear the cost of carriage to the named destination, the risk is already
transferred to the buyer at the port of shipment itself.
Cost Insurance Freight (CIF): The term is basically the same as C&F, but with the addition
that you have to obtain insurance at your cost against the risks of loss or damage to the goods
during the carriage.
Freight or Carriage Paid (DCP): While C&F is used for goods which are to be carried by sea,
the term "DCP" is used for land transport only, including national and international transport by
road, rail and inland waterways. You have to contract for the carriage of the goods to the agreed
destination named in the contract of the sale and pay freight. Your obligations are fulfilled when
the goods are delivered to the first carrier and not beyond. In case the buyer desires you to insure
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the goods till the destination, he would add 'including insurance' before the word 'Paid in Freight'
or 'Carriage Paid to'.
An application for pre-shipment advance should be made by you to your banker along with the
following documents:
Confirmed export order/contract or L/C etc. in original. Where it is not available, an undertaking
to the effect that the same will be produced to the bank within a reasonable time for verification
and endorsement should be given. An undertaking that the advance will be utilized for the
specific purpose of procuring/manufacturing/shipping etc., of the goods meant for export only, as
stated in the relative confirmed export order or the L/C. If you are a sub-supplier and want to
supply the goods to the Export/Trading/Star Trading House or Merchant Exporter, an
undertaking from the Merchandiser .
Post Shipment Finance
Post-shipment finance is the finance provided against shipping documents. It is also provided
against duty drawback claims. It is provided in the following forms:
Shipping Terms:
Consignee, FCL (Full Container Load), LCL (Less Container Load), Shipper, Shipping
Marks, Garments on Hangers (GOH), Flat Packet container (FPC)
Consignee:
The person whose name appears on the bill of lading or airway bill as the party to whom the
goods are to be delivered by the carrier
FCL (Full Container Load):
A fully loaded container which may be in weight or cubic measurement terms, contracted by one
shipper, and conveyed to one consignee and to one destination
LCL (Less Container Load):
A consignment of cargo which does not fill a full container, grouped with other consignments
for the same destination
Shipper:
This is the person whose name appears on the bill of lading or airway bill as the party who has
contracted the carrier to dispatch the goods.
Shipping Marks:
These are marks essential to identifying the cargo and linking that cargo with specific
documents. Because these marks are important as identifiers, the marks and numbers should be
as simple as possible. Shipping marks include the abbreviated name of buyer, reference number,
destination, package number, and container.
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Cost Calculation:
Cost is divided in to:1) Pre- cost------- Merchandiser
2) Final costing -------- Merchandiser + import section
Garment for example: - $ 5.00 = cost
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13. Carton
4. Labor charge
5. Washing charge (If it is garment wash)
6. Commercial and transportation cost.
+ 10% profit margin.
(% of profit margins is the distortion of the exporter)
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