INTRODUCTION

An organization study in the second semester of our MBA program is an important part of our curriculum. The study is aimed at an opportunity for the students to observe, lean, assimilate and analysis the objectives and vision of organization and functioning of its various departments. This would enable the students to get a practical and real time feel of various aspects concerned with the organization and to relate it to the aspects and theories studied so far in the class room. This exercise would enable the future managers to face the challenges lying ahead. It also enables to create a good relationship with the officials. This study was really a good experience and I could understand the difference between the theories that we studied in the books and actual practices and applications. This type of study must be playing a significant role in developing and improving our knowledge, skill and future career also.

The purpose of the report is to give the reader an understanding about the organization where the study is being conducted. The report gives the descriptive information about the industry profile, company profile, functions and activities of different departments, SWOT analysis, findings and recommendations.

The industry profile includes detailed description of the industry consisting of the history, major competitors, market share, compounded annual growth rate, global watch, Indian context, role of industry towards the economy.

The company profile explains the history of company, mission, vision, organization structure, activities of different departments, channel of communication, major products, business modules, growth rate, sales turnover, company milestones etc.

The last part of the project includes SWOT analysis consists of strengths, weaknesses, opportunities, threats etc. and findings were also pointed out which I found from the organization and suitable suggestions were also included.

I have done my project in Aditi creation, a textile manufacturing company at Tirupur. Aditi creation is promoted by Mr.Vinit Kumar Gogia and Mr. Bharat Bhushan Gogia, basically as a commerce graduates, hailing from Ambala Cantt in Haryana state, came down to Tirupur and having started Labels Business in the early 1985, marketing label was the main criteria, thus stepping into various manufacturing units, slowly gained the experience of Garments Manufacturing. This way after 5 years long experience, primarily stepped into trading of garments as much of Northern Markets were already known to them and it was quite good going till 1993 where the thought of making better earning led them into manufacturing of garments. An experience with all traders, consumers, manufacturers and garments and associated knowledge led the foundation for them the basic manufacturing unit. And both the brothers have been in the industry over the two decades and have complete legendary knowledge in the RM garments industry. To consolidate, its partners Mr.Bharat Bhushan Gogia and Vinit Kumar Gogia have their knowledge in these fields in unique ways.

INDUSTRY PROFILE

Indian textile industry is one of the leading textile industries in the world. Though was predominantly unorganized even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991.The opening up of economy gave the much-need thrust of the Indian textile industry, which has now successfully become one of the largest in the world Textile industry is the second largest industry in the world only next to agriculture. It forms the backbone of the economy of developing nations, viz, India, China, Pakistan, Bangladesh, etc. Textile industry comprises of a wide range of products right from fibre formation up to the production of readymade garments.

In India, the textile industry contributes substantially to the foreign exchange earned by the country. The export market consists of a wide range of items, viz, cotton yarn and fabrics, man-made yarn and fabrics, wool and silk fabrics, made-ups and a variety of garments. India's textile products, including handlooms and handicrafts, are exported to more than hundred countries. However, US, Canada, UAE, Japan, Saudi Arabia, Republic of Korea, Bangladesh, Turkey, etc are the major importers of our textile goods.

Indian textile industry largely depends upon the textile manufacturing and exports. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. Indian textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own country, but also opens up scopes for the other ancillary sectors. Indian textile industry currently generates

employment to more than 35 million people. It is also estimated that, the industry will generate 12 million jobs by the year 2010.

Some of the important benefits offered by the Indian textile industry are as follows: 1) India covers 61% of the International textile market. 2) India covers 22% of the global market. 3) India is known to be the third largest manufacturer as well as provider of cotton yarn and textiles in the world. 4) India holds around 25% share in the cotton yarn industry across the globe. 5) India contributes to around 12% of the worlds production of cotton yarn and textiles.

Textile is considered as a typical fashion product. Textile and fashion are act and flows each other and having deep relationship with each other. In this past especially before the industrial revolution, fashion changed so slowly, at that time, fashion means, A special manner of making clothes. Fashion began to change faster as industrialization progressed. In todays condition it is difficult even to recognize what the current fashion style is.

A style should be accepted by a majority of people in a society to become fashion. The other is that style is a fashion only at a certain period of time; it means the style/fashion changes continuously as time changes. This all indicates that fashion is a social phenomenon. However clothing has been the sensitive object to fashion, because it is used for personal expression and has high visibility.

These all shows how the social psychology of fashion can be incorporated in to the textile industry. Fashion is a word that we hear often in recent years. It is because as a society progresses technology and economically consumer needs change to prefer fashionable products.

After fulfillment of basic needs, consumer will turn has face to clothing for physical protection. When a person has a need, he wants products to satisfy the need. When a consumer is backed by buying power, it becomes a demand.

Basic Human needs theory

1) The physiological needs 2) The safety needs 3) The love and belongings 4) The esteem needs 5) The needs for self satisfaction

When consumers have physiological and safety needs, they want clothing for physical protection, at this stage fashion is not considered important. As physiological and safety needs are used, consumers with love and belonging needs want clothing to confirm to social norms and their reference groups. The desire to confirm is an essential power for mass production. The need for self-esteem and self-actualizations emerges as the needs are gratified.

When consumers have needs at this stage, clothing is used for self-expression and selfenhancement. The consumers seek products with prestige, individually high aesthetic value. The demand helps to introduction of high fashion style in the market. Consumers also seek more variety of different styles from the textile products. This theory is directly applicable to understand consumers needs of textile products.

Government Policies Affecting the Industry

As India steps in to an increasingly liberalized global trade regime, the Government of India has implemented several programs to help the textile and apparel industry adjust to the new trade environment. On November 2, 2000, the Government of India unveiled its National Textile Policy (NTP) 2000, aimed at enhancing the competitiveness of the textile and apparel industry and expanding Indias share of world textile and apparel exports to 10 percent by 2010 from the current 3 percent level. The study identifies the following measures taken by the Government of India to achieve these objectives:

Under the NTP 2000, the Government of India removed ready-made apparel articles from the list of products reserved for the ISS sector. As a result, foreign firms may now invest up to 100 percent in the apparel sector without any export obligation. The Government of India grants automatic approval within 2 weeks of all proposals involving foreign equity up to 51percent in the manufacture of textile products in the composite mills and in the manufacture of water proof textile products.

On April 1, 1999, the Government of India implemented the Technology Up gradation Fund (TUF) to spur investment in new textile and apparel technologies. Under the 5 year $6 billion program, eligible firms can receive loans for upgrading their technology at interest rates that are 5 percentage points lower than the normal lending rates of specified

financial institutions in India. According to Government of India officials, this interest rate incentive is intended to bring the cost of capital in India close to international costs.

The Government of India created a $16 million cotton technology mission to increase research on improving cotton productivity and quality. India's global textile share is 4 per cent, while the country captures 2.8 per cent of the world's apparel market. In 2005 - 06, the sector exported goods worth US$ 17.1 billion - up from US$ 14 billion in 2004 - 05 or 16.6 per cent of the country's total exports. Among those goods were ready-made garments, cotton textiles, man-made fibre textiles, wool and woolen goods, silk, handicrafts, coir and jute.

With regard to the industry's structure, in its 2005 International Textile Machinery Shipment Statistics report, the International Textile Manufacturers Federation (ITMF), Switzerland, noted India's installed spinning capacities, as reported in 2004, numbered 37.5 million short-staple spindles - second in the world only to China, which had 67 million short-staple spindles - and 9,90,000 long-staple spindles - third in the world behind China, with 3.6 million long-staple spindles, and Italy, with 2.6 million longstaple spindles. Open-end machine capacity that year totaled 501,140 rotors, third behind China and Russia. In the weaving sector that year, Indian firms reported 9,640 shuttles less looms and 90,230 shuttle looms. Capacities in 2004 for filament weaving looms and wool weaving looms were 1,500 and 7,300, respectively.

Spinning
The production of spun yarn, including the production of yarn from SSI (small scale industry) spinning sector was 3046 million kg in 1999 - 2000 and 3,458 million kg in 2005 06.The contribution from the SSI sector has been about 5% of the total production of spun yarn.
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Cotton and its blended materials from about 90 % of the total textile production. Majority of the yarn production falls in the course and medium count ranges, i.e., from 10s to 40s. Hosiery yarn (knitting yarn) count normally ranges from 10s to 30s Ne. It is understood that majority of coarser count yarn is utilized for knitting, i.e., for making garments/inner wear. However, fine count range is preferred for production of sarees, dhoties and superfine shirting for weaving. Depending upon the end use, various treatments, viz, twisting, singeing, mercerizing, etc are given to the yarn at various stages. Apart from the regular yarns, fancy yarns like slub yarn, neppy yarn, multi-coloured yarn, cork screw yarn, etc are also produced for a few end uses.

Weaving

Fabric production in different sub sectors has been reported below. The cotton fabric production is the major contribution for textile exports. The production of fabric is good at the moment and it has been a continuous improvement for the past two years. As of March 31, 2006, the power looms sub-sector - which produces various cloth products, including greige and processed fabrics - consisted of 4,30,000 units with 1.94 million powerlooms.

The ministry projected the number of power looms to rise to 1.95 million in 2006 - 07. Of the total cloth produced in India, 62 per cent of it came from the power looms sub-sector and the ministry estimates that more than 60 per cent of the country's cloth exports originated from that sector. With its employment of 4.86 million workers, the power looms sub-sector comprised approximately 60 per cent of total textile industry employment. Decentralized hosiery sector itself contributes with a 15 - 20% growth every year for garments.

Apparels
The apparel industry is one of India's largest foreign exchange earners, accounting for nearly 16% of the country's total exports. The 1996 Indian textile exports approximately amounted to Rs 35, 000 crore of which apparel occupied over Rs 14, 000 crore. It has been estimated that India has approximately 30,000 readymade garment manufacturing units and around three million people are working in the industry. Today not only is the garment export business growing, enthusiasm in the minds of the foreign buyers is also at a high. Today many leading fashion labels are being associated with Indian products. India is increasingly being looked upon as a major supplier of high quality fashion apparels and Indian apparels have come to be appreciated in major markets internationally. The credit for this goes to our exporter community.

Consistent efforts towards extensive market coverage, improving technical capabilities and putting together an attractive and wide merchandise line have paid rich dividends. But till today, our clothing industry is dominated by sub-contractors and consists mainly of small units of 50 to 60 machines. India's supply base is medium quality, relatively high fashion, but small volume business.

Profitability
Spinning mills have on an average 20,000 spindles each in India. It is small and medium scale unit when compared with global competitors. Major weaving sectors are decentralized and 90% of looms are auto looms. Further, a few shuttles less looms are secondhand machines which can run at 60 - 80% efficiency of new machine. Because of that reason the spinning mills and weaving mills profit margin in the range of 5 - 10%.

Similarly, each knitted garment unit has less than 500 sewing machines in India. Profitability of knitting sector is in the range of 10 - 20%.

Textile products produced from different countries, Profit margin is not much difference when we consider single spindle or loom and sewing machine. The reason for cheaper price from developed countries is mass production. Developed countries like China has been installing an average of 1, 00,000 spindles per spinning mill. Similarly, garment unit has sewing machines in thousands. New installations of weaving machines are a majority of shuttle less looms. These looms are highly productive, entailing nearly 10 - 15 times more production than auto looms. India is yet to reach this level and is in need of huge investment for high-tech machines.

Competitive analysis

New machine installation or existing unit expansion is based on market scope for the product. Product cost is the key to capture the market. Product cost is derived from raw material cost, manufacturing cost and profit margin. As far as spinning is concerned, raw material cost depends upon the material availability, seasonal change and transport. Similarly, yarn cost in weaving and knitting is the deciding factors to assess the raw material cost. The factors like capital investment (interest and depreciation), labour & power cost and material waste expenses are influencing the manufacturing cost.

Yarn and fabric manufacturing costs of different countries were tabulated. It gives detailed information about various factors which are influencing the manufacturing cost. India has low labour cost and high power cost in yarn and fabric manufacturing. India has lower yarn index than all mentioned countries and comparatively with china.

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Industry trends

India's textile industry has grown rapidly since the Multi-Fibre Arrangement ended in 2004, according to the Indian Government. Textile exports to the United States and Europe have risen 26 per cent and 18 per cent respectively. China continues to lead in terms of textiles and apparel exports. China's global textile and apparel share in 2005 was 24.7 per cent - worth US$115.1 billion - in comparison to India's 3.4-per cent share, worth US$ 16.1 billion.

During the year 2005 - 06, the share of textiles exports including handicrafts, jute, and coir in India's total exports was 16.63%. India's textiles exports have registered strong growth in the post quota period. Textiles exports grew from US$ 14 billion in 2004-05 to US$ 17 billion in 2005-06, recording a growth of 21.77%. Therefore, the Government has fixed a higher target of US$ 19.73 billion for the year 2006 - 07.

The number of spindles installation in India has been on the rise since 2000 01 from 37.91 to 39.03 million in the year 2002 - 03. Then it came down significantly during the year 2003 - 04 due to the closure of a large number of small scale spinning units that year. From then onwards, it has been steadily increasing every year. Similarly, spinning machine utilization is increasing every year. This is due to the latest technological developments and utilization of labour resources. The same trend has followed for weaving sector. Looms installed in India came down to 119 thousand in 2002. Again it went up and machine utilization increased up to 70% in the year 2006

Textile industry growth rates for the last 10 years .Overall industry growth rate has come down from the year 1995 to 2002. Then it increased and now is being maintained at a constant rate. In recent years spinning and knitting production and its growth rate are increasing rapidly.

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Spinning mills were flourishing in the year 1995 - 96. After 10 years again the trend is coming back. In order to sustain in the market, today industries are ready to squeeze their profit margin to compete in the global market. In order to compensate the annual turnover, they are forced to go mass production. This trend is the most applicable in garment sectors.

Spinning and weaving

There were 1818 cotton/man-made fibre textiles mills (non-SSI) in the country as on January 31, 2007 with a capacity of 35.37 million spindles, 4, 48,000 rotors and 69,000 looms. The capacity utilization in the spinning sector of the organized textiles mill industry ranged from 80% to 93% during the period 2000 - 01 to 2005 - 06, whilst the capacity utilization in the weaving sector ranged from 41% to 63% during same period.

The production of spun yarn, including the production of yarn from SSI (small scale industry) spinning sector was 3,046 million kg in 1999 - 2000 and 3,458 million kg. In 2005 - 06. The contribution from the SSI sector has been about 5% in the total production of spun yarn.

Garments
Garments account for approximately 45% of the country's total textiles exports. During the year 2004 - 2005, readymade garment exports were US$ 6 billion, recording an increase of 4.1% as compared to the corresponding period of 2003 - 04. During 2005 2006 the readymade garment exports have amounted to US$ 7.75 billion, recording an increase of 28.69 % over the exports during 2004 - 2005. During the first quarter of 2006 - 2007 the readymade garment exports have amounted to US$ 2.17 billion, recording an increase of 15.70% over the exports during the corresponding period of 2005 - 2006.
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The major competitors in this segment of the market are developed countries, Asian Tigers like Korea, Taiwan, Hong Kong and Singapore, developing countries like Indonesia, Thailand and Malaysia and neighboring countries like Bangladesh and Myanmar and China, of course.

In order to ensure quality of garment exports, the SSI tag on the garment industry shall be removed. Present equity participation of 24% by the foreign partners needs to be reviewed and joint ventures with majority share holding as well as technical collaborations should be allowed. Labour laws need a remodeling and liberalization. A research, development and training institute focused on post garment processing like washing dyeing, etc is also needed. Indian government should negotiate higher quotas from USA/EEC in accordance with its sizes and capabilities. Measures like streamlining Internal Quota Administration and freezing minimum export prices is crucial for the future of the garment export industry.

Factors affecting the market

Every industry has its own ups and downs. Textile industry is no exception. There are many factors, which influence the market and the growth rate of textile sectors. Major factors are infrastructure, volume of production, labour laws, availability of manpower, power tariffs, fluctuation of currency rates and government policies. Further, bulk production mainly depends on technology of the machine, utilization of the labour resource, financial assistances, etc.

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Structural weaving and processing weaknesses, lack of capacity in India's textile machinery manufacturing sector, and a fragmented garment industry as well as a fragmented and technologically slow textile-processing sector are also the major factors deciding the competitiveness of Indian textile industry in the global market. Government policies such as subsidy, duty drawbacks should assist more weaving, processing and apparel industries in near future.

Whatever said and done, the fact remains that India's textile industry is prominent in the country's economy as well as globally. The Government and industry advocates should continue to push the industry to grow in new directions, to remain technologically advanced and to make production even more economically viable. By doing so, the industry will be able to adapt to global changes and to take on whatever challenges it faces and competitors that may come its way.

Growth Opportunities

India, with a population of 1 billion people, has a huge domestic market. Indias middle class, currently estimated at 2000 million, is projected to expand to include nearly half the countrys total population by 2006. Based on purchasing power parity, India is the fourth largest economy in the world, has the third largest GDP in the continent of Asia, and is the second largest economy among emerging nations. India is also one of the fastest growing economies of the world. Although the disposable income of the majority of the Indian population is low, as the Indian economy grows, more consumers will have greater discretionary income for clothing and other purchases after meeting their basic needs

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Demand for non-woven textiles has been growing with increasing domestic affluence, growing health consciousness to use more disposable clothes, and the cost effective production of synthetic fibers in India. The liberalization of the Indian economy has created opportunities to import machinery and technology at preferential tariffs and enter into joint venture arrangements with foreign firms.

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COMPANY PROFILE

ADITI CREATION is a government recognized readymade garments manufacturer cum export unit incorporated in 1992 with the specific purpose of setup a state of the art garments manufacturing unit its all processing units under one roof.

Aditi creation is promoted by Mr.Vinit Kumar Gogia and Bharat Bhushan Gogia, basically as a commerce graduates, hailing from Ambala Cantt in Haryana state, came down to Tirupur and having started Labels Business in the early 1985, marketing label was the main criteria, thus stepping into various manufacturing units, slowly gained the experience of Garments Manufacturing. This way after 5 years long experience, primarily stepped into trading of garments as much of Northern Markets were already known to them and it was quite good going till 1993 where the thought of making better earning led them into manufacturing of garments. An experience with all traders, consumers, manufacturers and garments and associated knowledge led the foundation for them the basic manufacturing unit. And both the brothers have been in the industry over the 2 decades and have complete legendary knowledge in the RM garments industry. To consolidate, its partners Mr.Bharat Bhushan Gogia and Vinit Kumar Gogia have their knowledge in these fields in unique ways.

Aditi creation is started with a single imported Computerized Embroidery Machine has grown manifold now, possessing 90- Sewing Machines with a state of art garments production unit with more than 200 Employees, 9 Imported Computerized Embroidery Machines, sover increase of 100% and more in every year for the past 5 years. The company serves customers in India as well abroad suiting to their needs and the following

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chart indicating the turnover as well net profit, financial year wise, shall throw light to companys performance:

FINANCIAL YEAR 02-03 (Audited) 03-04 (Audited) 04-05 (Audited) 05-06 (Audited) 06-07 (Audited) 07-08 (Audited) 08-09 (Audited)

TURNOVER

NET PROFIT

28.87 LAKHS 85.81 LAKHS 322.29 LAKHS 513.05 LAKHS 949.55 LAKHS 1437.97 LAKHS 1384.13 LAKHS

5.77 LAKHS 16.99 LAKHS 19.64 LAKHS 38.59 LAKHS 47.32 LAKHS 62.29 LAKHS 61.90 LAKHS

Since the launching of brand BLEND & DAMSEL in mens & ladies categories, got thumping response from all the sectors. Though targets will be able to achieve almost two fold of fixed one.

Now the company launching a new product in night wear segment, where there is a great vacuum in this segment. So with this new brand NIGHT LIGHT company shall be

able to achieve new height in turnover as well as brand popularity. Indeed to categories group companies, that almost all the processing units are being owned by M/S Aditi creation, Tirupur

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Embroidery unit: As mentioned earlier 9 nos of imported computerized embroidery machines are with us, serving our own job in a major way besides doing job orders of other companies wherever possible. Compacting unit: We possess a full compacting unit totally for our orders. Knitting unit: We have our own knitting unit with 19 fully imported knitting machines. Printing unit: We own our printing unit along with curing machines totally meant for our needs.

As a matter of increase in size the company faced primarily manpower and then technical knows how, latest technology equipments. Therefore the company trained the Staff and workers in well equipped training centers also appoint personnels trained in form high fashion training institutions like NIFT (National Institute of Fashion Technology).And machineries also imported from various parts of the world like Japan, Korea etc. Also the company arrange to participation of its personnels in various type seminars and workshops to train up them to latest technologies in frequent intervals.

Nature of the business

Aditi is a Tirupur based concern, as a manufacturer and exporters of hosiery readymade garments and fabrics. They purchase hosiery yarns from textile mills and convert it into fabric by knitting the yarn. Then they process the fabric like dyeing, bleaching etc. After that, the fabric will processed like stem calendaring, compacting for the removing shrinkage problems. In production stage they cut the fabric as necessary for design and stitching in sewing machines. Then they do some value added process like embroidering, printing etc.

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PRODUCT PROFILE
y T-shirt y Bermudas y Pyjama sets y Night Wears y Blend & Damsel y Night Light

Export Product Information of Aditi Creation, Tirupur

HS Code

Product Description

N/A

Knitted Garments 19 Packages

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Export Shipment Database details of Aditi Creation, Tirupur

Date

HS Code

Description

India Port

Foreign Port

Foreign Country

Quantity

Unit of Quantity

30-92004

N/A

Cotton Knitted Garments 346 Cartons

Tuticorin Rotterdam Netherlands 554 Sea

Kgs

19-92004

N/A

Garments 103 Packages

Tuticorin Montreal Sea

Canada

1335

Kgs

13-102004

N/A

Knitted Garments 19 Packages

Tuticorin Antwerp Sea

Belgium

285

Kgs

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ORGANIZATION CHART

MD

FINANCE MGR

HR MNGR

PURCHASE& STORES MNGR

MKTNG MGR

PRDCTN MGR

MKTG HEADS PDTN SUPERVISOR

WORKERS

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DEPARTMENTATION

Various departments in ADITI CREATION are:

1. Finance Department 2. Marketing Department 3. Human Resource Department 4. Purchase Department 5. Production Department

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FINANCE DEPARTMENT

The finance function consists of the people, technology, processes, and policies that dictate tasks and decisions related to financial resources of a company. Depending on the organization and the industry in which it operates, this function may be simple or complex. Some finance functions are overstaffed that is, they rely on individuals to perform both advanced and simple tasks while others are highly automated relying on people for decision making and policy setting exclusively. Regardless of the ratio of people to technology, the goal of the finance function is to serve the organization's financial/accounting needs while laying a platform for the future. This means handling clerical tasks, providing information to the organization and setting financial policies and strategies that will serve the company in the future. To succeed in these three broad areas, the small and emerging business must be prepared to develop a finance function that both suits its needs and can adapt to the growth and changes of the business. The first step is to develop an adequate finance function. It carry out the managerial functions, i.e. production, marketing, personnel, etc. so it is very important to manage the finance properly and efficiently for an effective business growth.

Financial Management is a managerial activity concerned with the planning and controlling of the firms financial resources

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Sources of Finance
The various sources from which finances are raised are:y y y y y y Promoters contribution. Bank loan. Overdraft facility. Government Subsidy. Deposit by agents. Advance payment for booking by dealers

Accounting Procedures The company follows double entry Book Keeping. The company maintains Day Book to know about the day to day activities of the company and prepares ledger. Final accounts are prepared at the end of every month.

The organization of finance function implies the division and classification of functions relating to finance because financial decisions are of utmost significance to firms. Therefore, to perform the functions of finance, we need a sound and efficient organization.

Although in case of companies, the main responsibility to perform finance function rests with the top management yet the top management (Board of Directors) for convenience can delegate its powers to any subordinate executive which is known as Director Finance, Chief Financial Controller, Financial Manager or Vice President of Finance. Besides it is finally the duty of Board of Directors to perform the finance functions. There are various reasons to assign the responsibility to the Board of Directors. Financing decisions are quite significant for the survival of firm. The growth and expansion of business is

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affected by financing policies. The loan paying capacity of the business depends upon the financial operations.

The organization of finance function is not similar in all businesses but it is different from one business to another. The organization of finance function for a business depends on the nature, size financial system and other characteristics of an organization. With the increase in the size of business, specialists were appointed for the finance function and the decentralization of the finance function began. For a medium sized business, the responsibility of the finance function is given to a separate officer who is known as financial controller, finance manager, deputy chairman (finance), finance executive or treasurer.

In a large sized company the finance function has become more difficult and complex and the position of financial manager has become very important. He is the member of top management of an organization. For such large organizations it is not possible for a finance manager to perform all the finance functions or to co-ordinate with the various departments. Therefore, finance and financial control are separated and allocated to two different sub-departments. For the finance sub-department treasurer is appointed and for the financial control sub department, financial controller is appointed. Each of them has various sub-units under them.

Financial planning and financial control are quite significant for a large sized organization. Therefore, a finance committee is established between the Board of Directors and Managing Director. It includes the financial Manger, representatives of the directors and departmental heads of various departments. Managing Director is the chairman of the committee. Its main function is to advise the Board of Directors on

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financial planning and financial control and co-ordinate the activities of various departments. The following chart explains the organization of finance function.

From the chart it is clear that treasurer and financial control work under finance Manager. Financial Manager is responsible to the Managing Director. Treasurer performs the functions of procurement of essential funds, their utilization, investment, banking, cash management credit management, dividend distribution, pension, management etc.

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Financial, controller is responsible for general accounting, cost accounting, auditing, budget, reporting and preparing financial statement etc. In India the function of financial manager is given to secretary in most of the companies. He performs the functions of treasurer and financial controller along with the routine functions of secretary. He collects necessary data and information and sends them to the Managing Director.

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MARKETING DEPARTMENT

Marketing will be defined as people with needs to satisfy, the money to spend and the

willingness to spend it. Thus in the market demand for any given product or service, there are three factors to consider people with needs, their purchasing power and their buying behavior. We shall employ the dictionary definition of needs: A need is the lack of anything that is required or useful. We do not limit needs to the narrow physiological requirements of food, clothing and shelter essential for survival. The potentially limitless number of needs offers unbounded opportunities for market growth. Satisfying wants may be interpreted as the first step toward satisfying needs. Must strategic marketing management involve a seller trying to determine the following points in an effort to define the market to be targeted.

Which customer needs and wants are currently not being well satisfied by competitive product offerings.

How desired benefits and choice criteria vary across potential customers and how to identify the resulting segments by demographic variables such as age, sex, lifestyles or some other characteristics.

Which segments to target and which product offerings and marketing programs appeal most to customers in those segments. How the product is positioning to differentiate it from competitors' offerings and give the firm a sustainable competitive advantage.

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STEPS IN MARKETING PLANNING

Understanding Market Opportunities

Segmenting the Market

Positioning and Differentiating the Offer

Developing Marketing Mix Strategies

Marketing planning is basically about integrating needs of the customers in all the activities of the firm in a planned manner. It includes four steps:

a) Understanding market opportunities

Marketing planning starts from understanding the market and the opportunities it offers. The small apparel firms have to regularly watch and assess the market environment either in domestic or overseas. They have to have a strong sense about the fashion cycle which determines the demand for any apparel product. This is very important to predict what will happen to the product in future. A fashion cycle has five distinctive but continuous stages such as introduction, rise, peak, decline and rejection. The cycle may also recur after certain number of latent years. Many fashion cycles might behave like a fad and a few cycles would continue as classics. Fads are fashions that are adopted quickly with
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great enthusiasm and decline very fast. Classic fashions always stay in consumer day-today life. For example, cotton saree is a classic and boot cut jeans is a fad. Apart from this, the marketers must be vigilant about the competitors activity.

For example, the competitors might come up with innovative new products to serve a niche market that would be substantial enough to hold interest. Further, they should also look at the suppliers, distributors and retailers volume of business and profitability to expand the business in terms of forward or backward integration. For instance, the financial strength gathered over the years might encourage the small manufacturers to go for forward integration which could be in the form of retailing.

b) Segmenting the market

All the customers are not the same. Their needs and wants differ. Hence, the marketing efforts can not be the same for all the customers. But there may be similarities among group of customers in terms of their needs and wants. Segmenting is nothing but identifying such groups. For a small apparel manufacturer, it may be in terms of export agents, import agents, retailers and end consumers. The marketing efforts of the manufacturer should be specifically suited to the particular segment. The manufacturer can target only one segment or a few segments that suits its goals and the attractiveness of the segment. It can also have a target plan of which segment first, second and so on. The segmentation may go to the next level called identifying very narrow segment which is called as niche. The ultimate level of segmentation is one to one marketing. In this case, the marketing efforts are suited to the needs and wants of the individual.

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c) Positioning and differentiating the offer

When the manufacturer is targeting its efforts on a particular segment, the segment should recognize the manufacturers distinctive offering. In their minds, consumers associate the popular Raymonds brand for its premium and high quality suits. This is the position Raymonds has consciously developed over the years through their complete man advertisement. The positions can be created by the benefits that the customers get or the features that the product has. The small apparel firm can position itself in terms of the quality certificates that it would have received from respectable certification agency or it may position itself for offering best value for money or number of years of existence. The small apparel manufacturer should also think that how its offer is different from its competitors.

Accordingly, the offer with such difference should be made available to the customers. Care must be taken to focus on a difference which cannot be easily copied by the competitors. The firm can differentiate its offering in terms of product, accompanied services, employees, distribution channel and image. The firm can focus on a niche segment and differentiate its offer from competitors in terms of style and premium platforms. It can also go for competitive price with better quality as one of the differentiator.

d) Developing marketing mix strategies

Most of the decisions in marketing can be classified into four Ps: Product, price, place and promotion. Product means the goods-and-services combination the firm offers to the target market. It includes decisions related to the quality of the yarn, fabric, dye, stitching, designs of the fabric as well as apparel, branding, packaging, and accompanied
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services. Pricing includes the decisions related to list price, discounts, allowances, and payment-period and credit terms. Place means the activities of the firm that make the product available to target consumers. It includes decisions such as distributor network or having own retail shops, transportation, logistics and factory locations. Promotion means activities that communicate the merits of the product and persuade target customers to buy it. It includes advertising, sales promotion, personal selling and public relations decisions. All these decisions can be manipulated for a strategic purpose of entering, growing and competing in the market. The marketing mix decisions help the firm to tactically establish a strong positioning in the minds of the target costumers.

Aditi creations have a very good experience over 20 years in the marketing and have very good contact with clients. Also now they launch new brands in category wise to promote in different type of markets.

CLIENTS
They have clients all over India as well as abroad. 1) The Chennai silks, Tirupur, Coimbatore, Chennai 2) Maharaja super market, Kottayam 3) Vishal Retail LTD,Delhi,Mumbai,Kolkatta 4) Riyan Exports.New Delhi 5) Tata Trent LTD,Mumbai 6) Pantaloon Retail(INDIA)LTD,Mumbai 7) Shree Shyam Stores, Howrah 8) Neelkanth Apparels, Mumbai 9) Sapna General Trading,Ajman,UAE 10) Harmoney Readymade Garments Trading, Ajman, UAE.

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SUPPLIERS
In their industry YARN, SEWING THREAD, ACCESSORIES-BUTTON, ZIP, ELASTIC and PACKING MATERIALS are important Raw materials. As Tirupur situated near Coimbatore which is landmark for Textile Industry particularly cotton hosiery yarn, there is no problem of supply of raw materials. And all other raw materials also available in Tirupur without any shortage 1) Surya Jyoti Spinning Mills ltd, Mahaboobnagar, AP 2) Fisher Spinning Mills 3) Arihant Yarn Corporation, Tirupur 4) Mahaveer Sales, Ludhiana 5) Vishal Exports, Tirupur 6) Madhur Threads India P LTD 7) Jothi &Co, Tirupur 8) Narain Textile Lables,Mumbai

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HUMAN RESOURCE DEPARTMENT

Every organization or industry is not only made by brick, cement or wood but it builds by 4 ms ie: a) Money b) Material -

c) Machines And d) Men

The man is ultimate resources of the organization because they think, speck, so that utilization of this resource is very critical. Every success of origination is depending on efficient and effective man power. HR starts when a man enters in the organization and its end, when he leaves the organization .HR deals with the human dimension. Success or failure of an organization depends on the effective coordination of the resources such as money, material, machinery and men. Among these, the role and operation of men is the most complex. All the activities of an organization are initiated and completed by the persons who make up the organization. Therefore, people are the most significant resources of any organization. HRM is known by different names Personal management, personal administration, man power management

The man is ultimate resources of the organization because they think, speck, so that utilization of this resource is very critical. Every success of origination is depending on efficient and effective man power. HR starts when a man enters in the organization and its end, when he leaves the organization .HR deals with the human dimension.

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Success or failure of an organization depends on the effective coordination of the resources such as money, material, machinery and men. Among these, the role and operation of men is the most complex. All the activities of an organization are initiated and completed by the persons who make up the organization. Therefore, people are the most significant resources of any organization. HRM is known by different names Personal management, personal administration, man power management.

1. Introduction
Traditionally, personal management is concerned primarily with five basic systems recruiting, training, and compensation whereas if we integrate the system to other organizational functions/systems with more concern on human aspect ten this term becomes HRM.

HRM is the phenomenon of late 19th century, when, with the growth of industrialization in the West, the role of HR manager started to emerge. However, it gained importance in 1950s, when Japanese used it as a strategic resource. That led to the coining of the term HRM and the realization among the managements that an organized and militant labour force was an essential requirement for efficiency and that a Human approach towards employees paid greater dividends both at the organizational and national level.

Afterwards, HRM progressed to the centre stage of the organization. Today, therefore in truly world class corporations the HRM function has assumed a greater significance and plays a comprehensive role in organizational management.

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The dawn of the 21st century presupposes organizational systemic preparedness for retaining and gaining competitiveness in a global and native business scenario. The early 20th century predominantly focused on the manufacturing or the production priorities of the firm

HRM has been defined as the function / unit in organization that facilities the most effective utilization of HR to achieve the objectives of both the organization and the employee.

2. Role of HRM
The role of human resource management in organization is at counter stage. Managers are aware that HRM is a function that must play a vital role in the success of organization. It is an active participant in charting the strategic course an organization must take place to remain competitive, productive and efficient. Its focal point is people; people are the life blood of the organization. The uniqueness of HRM lies in its emphases on the people in work setting and its concerns for the well living and comfort of the human resources in an organization. The HRM function is much more integrated and strategically involved. HRM and every other functions must work together to achieve the level of organization. Effectiveness required competing locally and internationally.

It is the action oriented, individual oriented, globally oriented and future oriented. It focuses on satisfying the needs of individual at work.

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Functions and

businesses need to

integrate for effecting customer service.

The approach to HRM differs from organization to organization depending on how much it is valued by the management Technological change, innovation and heightened competition drive to increase the skill of employees. Competitive challenges motivate to companies to use their human resources effetely.

Contribution HRM to organization

1. Helping the organization to search its goal. 2. Employing the skills and the activities of the workforce efficiently. 3. Providing the organization with well trained and well motivated employee. 4. Increasing to the fullest the employees job satisfaction. 5. Developing and maintaining quality of work life 6. Communication 7. Helping to other department and function

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HRM includes the very Interesting phenomena that is HRD. Human resource development (HRD) is phenomenal for the manufacturing and service industry. HRD deals with up gradation of skills for labours and executives, planning and allocation of work, monitoring and assessment of performance. One of the most important tasks is upgrading the skills and knowledge of the human resource from time to time in tandem with the development of technology and trade. This upgradation is done through training and workshop/seminars. Collectively, HRD activities result in increased productivity, reduced cost and wastage, rightsizing of labour and staffs at the organization, organizational stability and flexibility to adapt to future changes.

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Industrial Relations
Industrial relationship is concerned as an important factor in personnel management. Relationship between employer and employee should be well maintained.

Remuneration
The company provides adequate wages to the employees as to maintain reasonable standard of living. The company maintains separate wage sheet for employees where the amount of wages paid and the details about incentives are recorded. The wages are paid in accordance to the level of performance for this purpose. Wages are fixed for the workers per month.

Working Hours
The working hours of the company is from 9.30 am to 7.30 pm with a one hour lunch interval as per the notice exhibited on the notice boards of the factory.

Structure of Human Resource Department

Managing Director

Personnel manager

Personnel Training Officer

Appraiser

Clerk

Workers

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Recruitment
The major recruitment in the company is through external source of recruitment, through the recommendations of the existing employees. Under this source the requirements are notified among employees and they recommend outside persons for recruitment. The company follows internal sources like transfer and promotions on a limited scale. The company also recruits casual, substitutes, temporary and probation workers for meeting short term demand.

Selection
The selection process is made simple in the company. No much qualification is required or the workers in the production department. The candidates are asked to attend the interview conducted by the managing director and the board of directors. This is to know the candidates communication skill, personality, general traits, previous experience etc. Aptitude test is conducted to measure the aptitude and capacity to learn skills required for a particular job.

Placement
After the applicants are selected they are placed on the job foe which he is employed. Induction and orientation training are given at the time of placement to familiarize with job and work place. The applicants work as probationer. They are asked to perform their work with waste pieces and the production manager will see their performances. If they work satisfactorily they are asked to do the main production process and for those below standard are given training.

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Training
The employees are trained for a period of two months to perform their job efficiently and help them to learn the advanced stitching, cutting, and other machines in the factory. The company adopts on the job training method where the employees are placed in a machine inside the factory. The employees learn by personal observation and practice under the guidance of the production manager.

Performance Appraisal
A periodic performance evaluation is done by company to evaluate the employees performance in various areas like leadership, quality awareness, intelligence etc. For performance evaluation the company uses a graphic rating scale which specifies several numerical scales used to represent a job related performances criteria and personality traits of each employee given to the rater. The rater gives a score to specific qualities related to each employee in the firm. Those employees whose performance is not found satisfactory are given necessary training to improve their performance.

Compensation
Workers below the standard level are 70% of the fixed salary. Average workers are given full salary. Workers above standard are given the salary along with allowances.

Incentives
The workers are considered to be the backbone of any industry. If the workers are dissatisfied with the pay then the work relationship of employees get disturbed. So it is necessary that the company should look into employee needs and provide incentives to meet those needs. Some of the incentives provided are:41

1. Provident Fund The allowances given to the employees for their security for future. The provident fund ratio is fixed at 24% of gross salary, out of which 12% is taken from employees and the rest 12% will be paid by the company.

2. Employee State Insurance (ESI) Aditi creations provide ESI facility to its employees. The employees enjoy and ESI of 6.5% of their gross salary out of which the company will pay 4.75%. Through this scheme, the workers can have free medical cheek up from ESI hospitals.

3. Accident In case of accidents inside the factory, the workers are given incentives for their healthy contribution to the company. And also the company took all the expenses of the injured person.

4. Increment Increment shall depend on efficiency, conduct and satisfactory performance of individual duties. It will also consider the date of completion of one year service for confirmed workman and payment will be made effective from the first of the month in which he completes one year.

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5. Bonus Bonus is an allowance addition to what is usual, current or stipulated. A sum given or paid beyond what is legally required to be paid to the employees. Bonus is paid to all workers in the company irrespective of their individual efficiency and performance on the job. Employees are provided with 8.45 bonuses from their fixed salary. They are also given festive bonus to the employees (pongal, deepavali etc).

Leaves and Holidays

The workers are eligible for leave as per Factory Act. Sunday is a holiday for workers. A worker who avail leave on medical ground and if it exceeds five days they should provide medical certificates.

The holidays for the workers of the company shall be governed by provision for Industrial Establishment Holiday Act. Management has the right to declare any other day as paid or unpaid holiday without any notice.

Functions of Personnel Management

Management of personnel is an important aspect of an industry. Every industry has a personnel department. The important aspects of the personnel management are;  To select and train the employees  To place the employee where they fit  To adopt proper wage payment wage payment system for the Employees  To carry out job analysis, job evolution and merit rating.  To look after the welfare of the employees
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 To settle the disputes among the personnel  To maintain good personnel relation  To maintain good moral among the employees

Also the personnel management function is especially concerned with the development of a highly motivated, smoothly functioning work force. Hence the personnel management becomes more important in an industry.

Method of selection of employees

Generally the following methods are employed to select the employees. The candidates are required to take one or more of the following tests:

Interview:
This method is mostly followed for the selection of employees. One or more persons having wide knowledge and the balance knowledge related to his employment will interview and case history of each candidate is thoroughly studies. Various details like the place of his education and training, past employment and performance are investigated. Some other important details like strength, both bodily and mentally, power of self confidence, power of understanding others view point manner and appearance and ability regarding emotional stability and personnel adjustment.

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PURCHASE AND STORES DEPARTMENT

Purchasing is a managerial activity which goes beyond the simple act of buying and includes the planning and policy activities covering a wide range of related and complementary activities.

The purchase officers are the people responsible for discharging purchasing functions. The head of the section or the department is the purchasing agent, also known as the purchasing officer, manager or buyer.

Manager

Purchase Manager

Store Keeper

Order Processing

After selecting the best source of purchase the next task is to place the order. For this, the company makes a legal order with the supplier on a form known as a purchase order.

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Before placing purchase order the company has to collect the purchase requisite from different departments. It describes the needed item and becomes the basis for action by the purchase department. Based on this, the managing director, marketing manager and store master decides to place the purchase order, which contains the list of items which the company needs for production.

The company insists an order acknowledgement from the supplier, acknowledging the receipt of purchase orders and agreeing to supply the items stated in the order.

STORES AND WAREHOUSE

STORES:
Storage is the process of holding raw materials over a time with care. Storage of goods is an important function of production and marketing. The function of storage is indispensable as long as there is a gap between time of production and the time of consumption.

WARE HOUSE: It is a place meant for the storage of finished goods/garments. The main sequences of operation in finished goods are:     Receive the finished goods from finishing section Checking of quantity and sorting into style, color and size. Sorting the garments according to customers dispatch sheet. Organizing the delivery.

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PRINCIPLES OF PURCHASING
There are three types of company. Their trading policies determine their approach to purchasing.

1.

NO STOCK

No stock companies make to contract, purchasing and production is initiated when the customer has entered in to a contract with the manufacturer. After completing the products the manufacturer provides a limited storage facility, enabling the customer to call off the garments when needed in the shops.

2.

FABRIC STOCK

Fabric stock companies purchase materials in anticipation of customer contracts and hold them in stock when contract are confirmed, the manufacturer is bale to proceed with cutting and assembly, and finished garments are then called off by the customer.

3.

GARMENT STOCK

Garment stock companies produce range of garments of their own design, the purchase materials, manufacture the garments and put them in stock; customers select garments from catalogue, which are dispatched on receipt of contract.

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PRODUCTION DEPARTMENT
Production is the basic activity of all industrial units. All activities revolve around production activity. The end product of production activity is creation of goods and services for satisfaction of human wants.

Production Management
Production management is a very important concept so far as any manufacturing concern is concerned. In most of the production oriented industries, the company gives due weight age to production management.

Concept of production is not as single aspect, it includes a lot of other aspects also. They include raw material, machinery, equipment, plant laborers, production planning, production schedule, etc. till the final product.

Thus production management is a wide topic that requires planned and controlled
handling with the effect of lot of people involved in it so as to achieve the desired objectives and goals.

Production department in ADITI CREATION

Production department is the most important department in Aditi creations. Vinit Kumar Gogia and Bharat Bhushan Gogia started Labels Business in the early 1985, slowly stepping into various manufacturing units. Then they gained the experience of garment manufacturing. An experience with all consumers, manufacturers and garments and associated knowledge led the foundation for them the basic manufacturing unit. Aditi
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Creations have a well equipped production unit with a production capacity of 25,000 pieces per day and technically trained staffs, experienced workers. Recently they imported two computerized embroidery machines from Japan. They have 90 sewing machines, 140 skilled workers, 40 helpers and 4 production managers for maintain total quality control. They are in this field for more than 20 years and have a good reputation in the market. They also export readymade garments to countries like Canada, USA, UK, Malaysia, Dubai, South Africa and Bahrain etc.

Raw Materials used for Production

Every company starts the product process after purchasing the required raw materials. Raw materials are an essential part for production the raw materials.

Fabrics
Fabrics are the main raw material used for production. Fabric is made up of yarns arranged together and yarns are further processed to fibers. There are two types of fibers used in cloth production Natural Fibers and Man-made.

Variety of Yarns purchased by the company: 1) Cotton (10s-60s counts).As the counts increased the thickness of the yarn decreased.2) Polyester: 100 Deier-150 Deier

Materials / Accessories
Materials Accessories are the threads ,polybag, cardboard,tag,bullet,kitthan,rope buttons,elastic,zip,cello tape and gum tape are used along with the fabric for producing garments. It is also a main raw material for whole garment processing.

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PRODUCTION PROCESS
Yarn converted as fabric with the use of the knitting machines also knitted into various designs colours and sizes as per buyers requirement. Then the fabric cutter as per the design and pattern of the required garment like T-SHIRT, BERMUDAS, PYJAMA SETS AND NIGHT WEARS. Then the fabric bit joined by stitching through sewing machines and finally it is fully converted ready to wear garments. Meanwhile value addition processes like embroidery, printing, hand works like fixing of fancy items (stones, bells etc.) and many more value additions like these added to the garments.

1. Store Purchase
At first the Yarn is purchased (cotton and polyester) from textile mills. As Tirupur is situated near Coimbatore which is a land mark for Textile industry particularly cotton hosiery yarn, there is no problem of raw materials.

2. Knitting
 Yarn is converted into grey fabric  Two things have to be set before the knitting process starts. 1. To set the GSM (gram per square meter) as per the requirement of the buyer. 2. To set the Gauge (per inch 24 needle is used)  Each machine has different diameter like 38,3034,36 etc.  After the knitting process the fabric is checked by placing it in a Roller checking machine.

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There are 11 machines in the knitting unit. One machine is for interlocking. All machines are made in china.

Type of machine: Mayerncie and Falmach Collar machine: K H Types of collar: Jaquard, Mini Jaquard and plain Type of Fabric: 100% polyester, s/j, Darby, Rib Interlock, Fleece, Waffle and Loop net.

3. Fabric Inspection
The new fabrics to be used for production are inspected by the supervisors in-charge to ensure the supreme quality of the product. In case of any defect, the fabric will be rejected. Each piece of the fabric is examined for finding out the defects. A record of measurements and defects are observed in the inspection report. All the major and minor defects are found out.

4. Dyeing
1) The fabric is coloured according to the demand of the customers. 2) Usually 10 colours are used by this company. It is an outsourcing purpose. Because the company doesnt have their own dyeing unit.

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5. Compacting
 Compacting is the process of removing wrinkles from the fabric and it helps to increase the length width of the fabric.  It is done for filling, smoothening, and for the best appearance. It controls the shrinkage. Name of the machine: Albert Maximum diameter is 55

6. Cutting
There are two types of cutting. They are:y Manual cutting and Layout cutting and stickering Manual cutting is done by the workers with their hands. Its advantage is there is only less wastage but it is time consuming. y Layout cutting is done by machines. The main advantage is that it can cut many no: of fabrics at a time but there will be more wastage as compared to manual cutting. Types of neck cutting: Types of sleeve cutting: Round neck and collar neck. Normal sleeve and wrangle sleeve

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7. Embroidery
The embroidery operatives carry out the embroidery work. There are 50 workers in this department There are 4 varieties of machines used for embroidery 1) Barudan-It is button type machine. It is an old type. 2) Tajima-it is a new version. It is touch screen embroidery 3) China machine 4) ZSK Embroideries are of 4 types 1) Sequeiens-It is mostly used in ladies and kids items and also in pyjamas. 2) Boring method-it is used in kids items. Boring means holing. 3) Cording 4) Chenille-It is for softness

These designs are created by computer and the disk is inserted in the machine. Thus the embroidery charges and threads can be reduced

Varieties of threads used for embroidery 1) Polyester-The breakages of threads is low, it costs high 2) Rayon-It looks attractive 3) Cotton-It is very soft 4) Metallic copper-it is very bright
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8. Printing
There are different types of printing like machine, table, discharge printing etc. There are 5 manual chest print machines and 3 fusing machines. Three colours are used for printing .Red, Green and Blue.

Film

Machine Printing

Fusing

Types of printing
1) Machine printing 2) Table Printing 3) Sublimation Printing 4) Rotary Printing 5) Discharge Printing 6) Emposing

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Process of printing
At first they insert the film design in the machine and print it and then the last stage fusing of the cloth. Fusing is a process that after printing there will be chance of breaking the print. So by fusing it will not break.

9. Stitching
Type of operations Helpers-40 Size setting Stitching operations (shoulder, sleeve joint, Arm hole joint, Side joint, Neck rib joint) There are 7 types of stitching are used in a T-shirt. They are:y y y y y y Lock stitch Over locked Flat locked Drimmer Picoting Zigzag

In basic half sleeve T-shirt, joining of the shoulder and neck rip is stitched in the over locked machine. Sleeve hemi stitching is done on the flat lock machine. Neck folding machine is used for doing piping on the fabric. Here the production is line production because more production can be done with less time. The machines are Kaja and Butto machine. There are 90 stitching machines. Workers Over lock-20 Flat lock-10

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10. In-process Inspection

The line checks carry out the inspection at selected assembly station in the stitching department. They inspect the pieces for fabric, sewing and seaming defects. If any objects are found out the parts are returned for rework. They again inspect all the reworked parts for conformance and record the number of pieces inspected and defects observed in the inspection report.

11. Button hole and Buttoning

Machine operators carry out this activity. They use scale in the centre of the placket and parallel to the edge for making button hole and buttoning. Specified types of buttons are sued according to the type of fabric. Puckering should be avoided during button hole and buttoning. After button hole and buttoning each garment is checked for proper alignment and finally the parts are for operational clearing.

12. Whole Garment Inspection

The checkers are finishing carry out this activity. The parts which need minor rework are sent to alteration table in the finishing section and parts which require major work are returned to the stitching department. Finally they again inspect all the reworked garments for conformance and record is made for the parts inspected and defects found in the inspection report.

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13. Packing and Dispatching

Packing operatives carry out packing and dispatch works. With the help of cutting register, price sticker is printed on the garments with the details of size, style, number, MRP and date of packing. One copy of price sticker is placed on the box and the other on the tag of the garment. After that they are stored according to design and size wise in the designated place. The report is sent to the dispatch assistant for taking necessary entry in the stock register. The stock is checked and required quantities for product are taken out as per the packing list issued. Then they are packed into cartons with the customer address printed on it. The dispatch assistant checks the entire dispatch document and arrange for the transporting of goods.

Production Process Flow Chart

Store Purchase

Knitting

Fabric Inspection

Cutting

Compacting

Dyeing

Embroidery

Printing

Stitching

Whole Garment Inspection

Button Hole/ Buttoning

In- Process Inspection

Packing

Dispatching 57

INFORMATION SYSTEMS
Various types of information systems used in the factory for speedy and accurate communication. 1. Telephone and Intercom: Phones and Intercom is highly useful to communicate between various departments. 2. Computers: - E-Mail communication, Internet usage like chatting, video conferences. E- Mail and Internet connection used for high speed communicate and immediate reply for speed up the decision making which is lead to increase in productivity. 3. Digital Notice Boards Is useful for display any instructions, rules and latest update to the workers in accurate and immediate. 4. Fax Machines Is using for communicate between various branch units and factories. 5. LCD Projectors Is very useful for educate the team leaders as well as secondary level management staffs about latest technical knowhow. 6. Closed Circuit Camera Is useful to monitor the various workplace of the factory from a single control room. Thus the Information Systems is very useful to improve and speed up the planning and operations of the concern.

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SWOT ANALYSIS

STRENGTHS
Main strengths of the unit are its promoters have very good field and market experience. Also the company have very good customer base, which is very key requirement for success of a business. Timely supply and prompt customer support also some other plus points if this unit. Better management.

WEAKNESSES
Main weakness is situation of various processing factories of the unit in various places. The management has planned to bring all the units under one place.

OPPORTUNITIES
There is always lot of opportunities in Textile Field available. Increase in population and increase in per capita income also one of the bright future of the industry. Also lot of Export opportunities in the market.

THREATS
Lack of trained labours in seasonal time, unstable price of main raw material Yarn, International competitors like China, Pakistan & Bangladesh are important threats of the industry

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FINDINGS AND SUGGESTION

FINDINGS

y y y y

It out sources functions such as dying of clothes There is no labour problem inside the company There production capacity is 25000 pieces/day Production dept plays a vital role in the organization.

SUGGESTIONS

y y y y

Use new machineries. Start a dying unit inside the company. Bring some promotional advertisements. Spread the business other state also.

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CONCLUSION

ADITI CREATION is one of the leading dress manufacturers in South India and has created a good image not only in India but also in International market. The major reasons why ADITI has been a success;

y y y

Well qualified Promoters are leading from the front. Cordial relationship between employees &top level management Good quality, skilled workers joining hands in achieving targets.

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BIBLIOGRAPHY
Sites:
www.tirupurknitwearindustry.com www.aditicreation.com http://texmin.nic.in/ermiudel/intcost.htm. Sources from Ministry of Textiles - website

Production & operation management:

- Gagan Deep Sharma - Mandeep Sharma

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