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Sun creations
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Sun creations
INTRODUCTION AND DESIGN OF THE STUDY
INTRODUCTION
The garments industry in India is one of the best in the world. An
extremely well organized sector, garment manufacturers, exporters,
suppliers; stockiest and wholesalers are the gateway to an extremely
enterprising clothing and apparel industry in India. There are numerous
garments exporters, garments manufacturers; readymade garments exporters
etc. both in the small scale as well as large scale.
Garment Manufacturing and Export industry, which most of us know is the
real engine of growth for the whole textiles sector in India. Without
substantial and quick development of this sector, there is not much scope for
the growth of Indian Textiles for exports. Foreign buyers look for a complete
package as finished product and not only fabric. Most of the far-eastern
countries especially China have developed there textile sector on the
strength of garment industries in their regions. So we have to take a proven
track for our growth.
Title of the study
“A report on Organization study on Sun creations”
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Objectives of the study
The main aim of this study is:-
To study the organization as a whole.
To gain insight of the various departments in the organization.
To know the organization structure.
To know the functions and operations of the structural performers in
the organization.
To know Quality issues and practices in the organization.
To conduct SWOT analysis.
To study the manufacturing opportunities and make appropriate
suggestions.
LIMITATIONS
Though the present study aims to achieve the above- mentioned
objectives in full earnest and accuracy, it may be hampered due to certain
limitations. Some of the limitations of this study may be summarized as
follows:-
The findings could not be fully generalized.
Detailed information of the particular department may not be
completely revealed.
Time constraint.
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PROFILE OF TEXTILE INDUSTRY
The garment industry has emerged as a dynamic and booming industry.
This trade has got socio-economic importance as it is essentially a labor in
extensive industry and has the potential to generate wide spread employment
particularly of rural and backward areas. The rapid growth of this industry in
the last few years revealed the massive export potential.
The entrepreneur are setting up new factories and trying to employ more and
more professional to take care of senior positions of their organization. To
teach the various technical stages of garment making. Companies should
also gear up with sophisticated machineries and proper infrastructure with
pleasant environment to take care of the required quality standards and to
meet the healthy competition in the international market.
It is a major foreign exchange earner and, after IT, it is the largest employer
with a total workforce of 35 men. In 2007 textile and garments accounted
for about 18% of industrial production. The industry covers a wide range of
activities. These include the production of natural raw materials such as
cotton, Jute, silk and wool, as well as synthetic filament and spun yarn.
In addition an exclusive range of finished products are made. The Indian
textile industry accounts for about 23% of the world’s spindle capacity,
making it the second highest after china, and around 6% of global rotor
capacity.
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The industry has presence of large-scale production units a well a small-
scale independent units. The industry is manufacturer driven with spinning
having large scale operations and the retailing as the weakest link. However
now India has reached more customers, due to our growth in vertical set up
has grown international.
Government policies will promote textile exports. By providing those
subsidiaries of 8.8%.However lack of advanced processing capabilities,
Economies of scale and Fragmented industry structure are some concerns to
be addressed.
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COMPANY PROFILE
SUN CREATIONS is a Bangalore-based, private garment manufacturer
promoted by Sathish kumar,
an eminent educationist, garment-specialist and entrepreneur from the
Garden City.
The garment unit is located centrally in the city and is only 20 minutes by
drive from the Bangalore City Central Railway Station, on an 11,500 square
feet plot located in a pleasant, pollution free site.
The layout of the unit is well planned and Operating which has 11 years of
experience in the Indian garment industry. Best-in-class business practices
ensure that Sun Creations is a professionally organized and managed
company with an excellent track record spanning more than 7 years.
Sun Creations, which was started in the year 1996 under the name DRSR
Exports, changed its name to ‘Sun Creations’ in 2005. With steadily
growing demand over the years,
Sun Creations opened a new factory in the year 2003 with a production
capacity of 1000 pieces per day.
Our facility is AQL-standard compliant and has found to be to the
conformity with our clients’ norms.
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We are currently operating at a 2.5 AQL Level. With all operational
controls under one roof, there is always 100% monitoring and control of
quality.
Location:
The building is of total area of about 9000 Sq ft
with the possibility of expansion of each chain.
The installed capacity of stitching is about 1000 pieces per day.
The fabrics used are
Cotton
Viscose
Cotton/ Viscose
Polyester Cotton
Cotton Lycra
Yarn dyed stripe
Synthetic fabric
Denims
Poly Viscose
Moss Threads
Twill
Georgette
Moss-crape
Water proof fabric and many more.
Vision
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SUN CREATIONS envisions a place for itself among the top firms in the
Indian garment export industry, with maximum customer satisfaction and
retention.
Mission
SUN CREATIONS business is to Manufacture Ready Made Garments for
Men’s, Ladies and Children’s. Our Aim is to exceed Customer's expectation
through innovation, continuous quality improvement and people
involvement.
We will profitably grow along with stake and achieve market leadership in
the core segments of our Business.
Core Values
Always strive to satisfy our clients
Always maintain highest ethical standards
Work hard, respond quickly and learn continuously
Work as a team by minimizing inefficiencies and communicating
openly
Support innovation, creativity and enterprise
Care for our clients, as they are assets of the company
Treat our client as a partner in our progress
Always strive to improve the performance of the company.
Motto
“TOTAL QUALITY & CUSTOMER SERVICE”
Clients:
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The clients are the heart of the business and all the actions of the company
must lead to their satisfaction.
People:
People are the greatest asset and strength. All success will only be achieved
through their involvement and teamwork.
GUIDING PRINCIPLES
Quality means satisfying customer requirement, which is our top priority.
To achieve this, the work we do must be right first time.
Continuous improvement means we must eliminate waste in all areas of
the business, such as scrap, rework, excess inventory, overlap and
duplication.
We must expose and solve problems at source, putting our efforts into
prevention.
We must evolve our processes to meet the changing customer need,
always to improve quality, reliability and responsiveness.
Dealers and our sales teams are our link to the customer, suppliers are our
partners. We must work together to meet our common on objectives.
Good working relationships are founded on trust, respect and fairness.
We work as a team to solve problems in an open and constructive
manner.
A good reputation is hard won and easily lost. We must conduct our
affairs within the company and in public to the highest standard of
honesty and integrity.
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Equipments
SUN CREATIONS is equipped with the state-of-the-art garment
manufacturing machines like Juki and
Single needle Sewing machines (100Nos make JUKI), Eastman Cutting
Machine, Ramson Steam Press 05nos, Fusion machine o1.
Factory runs with a Electricity power of 75 HP and back-up power of 82.5
KVA.
WORK FORCE
SUN CREATIONS has engaged nearly 150 skilled and 50 semiskilled
employees who are qualified to carry out high quality production.
List of Equipments
SL
NODESCRIPTIONS BRANDS MODEL NO
NO
OF
M/C
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1SINGLE NEEDLE LOCK
STITCH M/CJUKI 5530 55
2SINGLE NEEDLE AUTO
THREAD CUTTING M/CBROTHER 12
3SINGLE NEEDLE LOCK
STITCH M/CBROTHER 40
4SINGLE NEEDLE EDGE
CUTTER JUKI 8
5STRAIGHT KNIFE
CUTTING M/C 8”EASTMAN
629 BLUE
STREAK2
6 FUSING M/C HASHIMA HP 440 1
7 DOUBLE NEEDLE JUKI 12
8 SNAP ATTACHNG M/C NAGAI SING NS-45 4
9 OVER LOCK JUKI 2366N 12
10 BARTAK M/C JUKI 5
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11 KEY HOLE LSM 1
12 BELT MAKING M/C KANSAI 2
13 FEED OF ARM JUKI 2
14 IRON TABLE 5
15 GENERATOR 82.5KV 1
Business Partners
SUN CREATIONS produces all kinds of Woven Garments for Ladies,
Men’s and Kids.
We are proud to be associated with the following Prestigious Clients as their
vendor:
Gokuldas Images and Exports
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Next Fashion Export
Awesome Sports wear
Karle Exports
All-time Fashion
Silk Fashion Exports
Choudhary Exports B Sorabji Etc
Following are the labels Manufactured for the above mentioned
partners
Nike
Reebok
H &M
Wal-Mart
C &A
Zara
Allen Solly
Peter England
By ford
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Export Brands
• WOOLRICH, U.S.A
• CAILLOU
• LPPSA, FRANCE
• PRIMER ROLE, FRANCE
• ARVIND (LEE KIDS)
• KIABI, BABIES & LADIES
• MAUI & SONS , FRANCE
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PRODUCT PROFILE
Product range:
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Sun creations is one of the pre-eminent Manufacturer and Exporter of
Fashionable Ready-made Garments like Ladies Skirt, Men’s Jacket, Ladies
Top, Men’s Shirt and Ladies Trouser. The company also has its own well-
established sources for fabrics and trims so as to enable it to give garments a
finishing touch at a cost-effective price. The company also believes in
service, quality and on-time deliveries.
Other range includes regular tennis and boxer shorts in knits and woven,
basic T-shirts, formal shirts, trousers etc.
Customer’s Details:
Sun Creations has major clients in India as well as abroad. Few of them are listed as
follows:
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Clients DetailsClients Details
IndiaIndia Foreign Foreign
Madura goats Indus lease
Premier role, Zolla Cotton division
Sun creations
ORGANIZATION CHART
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Director
HRD MGR
GEN MGR FINANCE
MARKT MGR PRODUCTION MGR
HRD OFFICER
MGR ACCOUNTS
SR.OFFCIER MARKETING
ASST MGR PRODUCTION
HRD ASST ASST MGR
ACCOUNTS
MERCHANDISERS SUPERVISORS
ACCOUNTS OFFICER
WORKERS
ACCOUNTS
ASST
HELPERS
Sun creations
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FUNCTIONAL DEPARTMENTS
List of Departments:
Production Department
Cutting Department
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Quality Control Department
Human Resource Development Department
Stores Department
Finance Department
4.1 PRODUCTION DEPARTMENT
Introduction:
The production department is one of the core parts in every process-
based industry. Addition, it plays a vital role in the organization for smooth
going in every sugar industries;
LOCATION: The Production unit is located at #44, 60 feet road,
Srinivasnagar, Pattegarpalya, Bangalore, Karnataka- 560072.
Production Capacity:
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The factory is equipped with state of the art machinery and equipment
including high tech lab testing capabilities. Combed cotton yarns are
procured only from the largest and most modern spinning mills in India
where stringent controls guarantee exacting standards. Integrated elastic
weaving and fabric knitting along with carefully controlled fabrics dyeing
and processing ensure consistently high standards of finished garments.
With modern and efficient production and quality control system led by a
team of highly qualified technologists, quality standards are at par with Sun
Creations products available worldwide.
GLOBAL COMPLANCE STANDARDS
Sun Creations has been independently audited and approved by
internationally recognized ‘Intertek Testing Services (ITS)’ for safety and
production system. The company has also been certified by the adherence to
universally principles covering labor, human relations and all applicable local laws
pertaining to industrial production.
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WORK FLOW MODEL:
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Receiving fabric Quality checkin
g
StoresCutting
Sewing Quality checkin
g
Quality auditPacking
Finished goods
Sun creations
4.2 CUTTING DEPARTMENT
Cutting Inspection
Marker gives the marker plan according to sizes, all the components
with respect to the size, on a paper, which is done by plotter.
Then lays are laid on the table one above the above accurately; on this
lay marker planned paper is placed.
Cutter with straight knife cuts according to the marker plan, thus
different components are cut.
Inspection in cutting
All the cutted components are inspected
If there are any defects, that panel is rejected ,and that rejected panel
is are cut i.e. another replica is made.
Again it is inspected by QC.
Then inspected components i.e. acc to sizes all the components are
stored in a bag.
This bag is sent for sewing section.
Cutting is the very first process in garment manufacturing. The cutting
department receives the fabric from the fabric department after inspection.
The main objective of cutting section is cutting of garment parts
accurately, economically and in sufficient volume to keep the sewing room
supplied with work.
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As soon as fabric receives after inspection, a sample of fabric is sent
to testing for shrinkage test, once it approved then widthwise segregation is
done for fabric bundles and then issued to the cutting process. According to
the size ratio and production rate of sewing department cutting section plans
for the lays to be laid.
INSPECTION PROCEDURE
Every fabric has to be inspected 100% incase 15% with the consent of
concerned merchandiser approvals.
The fabric is inspected in a full width
The distance from the machine should not be more than 3 feet.
Any defect shall be counted in accordance with the length of the defect.
4.3 QUALITY DEPARTMENT
Quality is the main feature in a product that delights the customer by either
meeting or exceeding expectations. As per ASQC (American Society for
Quality Control)
“Systematic approach to the search for excellence.”
“Fitness for use” i.e. combination of characteristics or properties of product
which makes the product usable.
Quality is every body’s concern. A product of service noted for its quality is
never happened by accident. It is the result of careful planning, control and
management process.
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Managing of quality and quality importance:
Most of the people have a conceptual understanding of quality has relating
one or more desirable characteristics that a product or service should
possess. What is quality? Many of us attribute different terminology to the
term quality. For many, quality is good appearance, better prints of color,
better durability etc., however quality means conformance to requirements.
Popular definitions is “Quality is what customer ask”
Definition given by ISO is as follows “Degree to which a set of inherent
characteristic* fulfills requirement.”
In many manufacturing process there are two general aspects of fitness for
use –
Quality of design and
Quality of conformance.
Before commencement of production operation commences, it is necessary
to understand what is to be designed and made. This follows the actual
manufacturing of the intended product. Finally it must be ascertained
whether me product designed and manufactured is what was intended.
Hence it is convenient to mink of all matters related to quality of a product n
terms of three functions i.e. specifications, productions and inspection.
Continuous improvement process is the focus of today’s quality revolution.
In companies that are involved in this revolution, this continuous
improvement has two components
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1. Philosophy
2. Problem solving/ graphical techniques
Philosophy: there are common points in the operating philosophies in these
companies they are follows:
That improving quality by removing the causes of problems in the
system inevitably leads to improved productivity.
That the person doing the job is most knowledgeable about the job.
That people want be involved and do their job well.
That every person wants to feel like a valued contributor.
That more can be accomplished working together to improve the
system than having individual contributors working around the
system.
That a structured problem solving process using graphical techniques
produces better solutions than in an unstructured process.
That graphical problem solving technique let us to know where we
are.
Though a number of statistical techniques are used in industrial,
manufacturing and other business situations mostly used and widely
understood statistical tools are known as seven quality control tools.
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The most commonly practice quality control tools in the company are:
Process pro diagram
Check sheet
Run chat
Control charts
Histogram
Pareto chart
Cause and effect diagram
Structure of Quality Control Department
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Classification of defects:
The standard calls for defect to be classified critical, major and minor.
Critical defect:
A critical defect is a defect that judgment and experience indicate is
likely to result in hazardous or unsafe conditions for individuals using,
maintaining or depending upon the product or a defect that judgment
experience indicate is likely to prevent performance of the tactical
function.
Major defect:
It is a defect other than critical that is likely to result in failure or to
reduce materially the liability of the unit of product for its intended
purpose.
Minor defect:
It is a defect that is not likely to reduce materially the usability of the
unit of product for its intended purpose or is a departure from established
standards having the bearing on the effective use or operation of the unit.
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YARN DEFECT:
Slub
Snarl
Slft yarn
Hairiness
Uneven loops
Needle breakage
Dropped stitches
Wrong yarn
Irregular loops
Oil streaks
Vertical lines
Thick place
DYEING DEFECTS:
Shade variations
Hazzy dteing
Streaks
Specky dyeing
Colour spots
Colour bleading
Crease marks
Patches
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PRINTING DEFECTS:
Misprint
Repeat marks
Uneven printing
Print impression
Colour stains
Hazzy printing
Poor whiteness
Print washout
SEWING DEFECTS:
Open seam
Skipped stitches
Broken stich
Seam failure
Excessive seam
Improper stitch balance
Ragged edges
Needle cutting
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PACKING DEFECT:
Wrong folding size
Wrong folding method
Wrong hang tag
Wrong tissue paper
Missed hang tag
Missed tissue paper
Poly bag torn
QUALITY CONTROL DEPARTMENTS
1. Fabric quality department
2. Cutting quality department
3. Sewing quality department
4. Final wash checking
5. Finishing
6. Product safety department
FABRIC
Key job responsibilities.
Assurance of quality incoming fabric knits.
Generating report based on the shed and shrinkage values.
Implementation of quality system in section.
Record and documentation to meet ISO standards.
100% inspection for all.
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Shade or shrinkage
100% checking for all roles
Actual garments wash for shade and shrinkage activity
Cutting
A quality control person who checks and monitors the procedure.
Quality control should check each component of the entire garment.
After cutting quality control indentifies any fabric defect on cut pieces
and recut if necessary.
Defect has to be recorded in the report form with number of bundles
examined.
Production (Sewing)
Confirmation to buyer requirements on construction.
Cross checking the batch layout to that of idea allocation.
Cross checking the trim card to trim used in the batch.
Monitoring the m/c settings.
Monitoring on operator to m/c quality and construction altering the
supervisor and production team for positive action. Critical issues are
highlighted through traffic light system.
Finishing
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Confirmation to requirement of the product.
Cross checking the construction.
Cross check on trim card on to trim approved.
Auditing based on the AQL systems.
Cross check on the presentation of the garments that to approved
STD.
Records and documentations.
Hourly production reports.
Audit report on workmanship, measurement specification and
packing.
Final audit report on packed goods.
Trim auditing
100% auditing of all the trims and accessories will be done by Q.C.
Approval of trims and accessories is based on the merchant pre-
approval.
Record and documentation.
Product safety
This department ensures the product is being manufactured in safe
condition so as to avoid any mental contamination in the garment.
To meet the satisfaction of the customer safety.
Employees are also taking of the products safety care.
Management duties in maintaining the quality
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1. Management is linear in spending money on required materials and
machineries.
2. They check day to day quality progress with the help of quality
assurance department.
3. They identify the workers problem in maintaining the quality if any.
4. They provide facilities for their work and to get good output from
them
5. They provide good quality machineries and other required materials
which are necessary to maintain the quality.
6. They check the documents day by day to solve the problems if any.
4.4 HUMAN RESOURCE DEVELOPMENT DEPARTMENT
Human resource department:
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CHIEF MANAGER – HRD DEPT
TRAINING MANAGER
ASST TRAINING MANAGER
INSTRUCTOR
Sun creations
Function of Human resource:
Training need assessment
Vocational training
Internal and external training
Recruitment
Appraisal
Promotion
Apprenticeship training
Transfer
Wage and Salary admin
Grievances handling
Disciplinary action
Personnel admin
Sun Creations is committed to a healthy work environment and the well
being of employees. Global manufacturing has brought a whole new
spectrum of possibilities. To succeed, the company is committed to high
quality products - and high standards for our employees.
The company is proud of our tradition of conducting its business in
accordance with the highest ethical standards and in compliance with the
laws of the United States and have the countries in which it produces,
buys and sells its products. Sun Creations is committed to legal
compliance and ethical business practices in all operations and seeks to
do business with Suppliers who share that commitment. It actively seeks
to engage as its Suppliers, companies that offer their workers safe and
healthy workplaces.
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Sun Creations will not tolerate exploitative or abusive conditions once
known. No Code can be all-inclusive, but we expect our Suppliers to act
reasonably in all respects and to ensure that no abusive, exploitative or
illegal conditions exist at their workplaces.
Sun Creations enquires its Suppliers to extend principles of fair and
honest dealing to all others with whom they do business, including
employees, Subcontractors and other third parties. We also require our
Suppliers to ensure and to certify to us that no abusive, exploitative or
illegal conditions exist at the workplaces of their Suppliers and
Subcontractors. Sun Creations will only do business with Suppliers who
obey the laws of the country in which they operate and the principles
expressed in this Code of Conduct.
Sun Creations will only do business with Suppliers who have certified to
us that their business practices are lawful, ethical and in compliance with
the principles set forth in this Code of Conduct. Moreover, Sun Creations
will only do business with Suppliers who have agreed to be subjected to
the scrutiny of its Compliance Program under which they will be
inspected and evaluated to ensure their compliance with this Code of
Conduct.
Forced Labor: Sun Creations will not purchase products or components
thereof from Suppliers that use forced labor, prison labor, indentured
labor or exploited bonded labor, or permit their Suppliers to do so.
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Child Labor: The company will not purchase products or components
thereof manufactured by persons younger than 15 years of age or
younger than the age of completing compulsory education in the country
of manufacture where such age is higher than 15.
Harassment or Abuse: Sun Creations Suppliers and Subcontractors
must treat their employees with respect and dignity. No employee shall
be subject to physical, sexual or psychological harassment or abuse.
Non discrimination: Sun Creations Suppliers and Subcontractors shall
not subject any person to discrimination in employment, including hiring,
salary, benefits, advancement, discipline, termination or retirement, on
the basis of gender, race, religion, age, disability, sexual orientation,
nationality, political opinion, or social or ethnic origin.
Health and Safety: Sun Creations Suppliers and Subcontractors shall
provide a safe and healthy working environment to prevent accidents and
injury to health arising out of, linked with, or occurring in the course of
work or as a result of the operation of employer facilities. Employers
must fully comply with all applicable workplace conditions, safety and
environmental laws.
Freedom of Association: Sun Creations Suppliers and Subcontractors
shall recognize and respect the right of employees to freely associate in
accordance with the laws of the countries in which they are employed
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Wages and Benefits: The Company’s Suppliers and Subcontractors
recognize that wages are essential to meeting employee's basic needs.
Sun Creations Suppliers and Subcontractors shall pay employees at least
the minimum wage required by local law regardless of whether they pay
by the piece or by the hour and shall provide legally mandated benefits.
Work Hours: Sun Creations Suppliers and Subcontractors shall not
require their employees to work more than the limits on regular and
overtime hours allowed by the law of the country of manufacture. Except
under extraordinary business circumstances, Sun Creations Supplier and
Subcontractor's employees shall be entitled to one day off in every seven-
day period. The company’s Suppliers and Subcontractors must inform
their workers at the time of their hiring if mandatory overtime is a
condition of their employment. Its Suppliers and Subcontractors shall not
compel their workers to work excessive overtime hours.
Overtime Compensation: Sun Creations Supplier and Subcontractor
employees, shall be compensated for overtime hours at such premium
rate as is legally required in the country of manufacture or, in countries
where such laws do not exist, at a rate at least equal to their regular
hourly compensation rate.
Contract Labor: Sun Creations Suppliers or Subcontractors shall not use
workers obligated under contracts which exploit them, which deny them
the basic legal rights available to people and to workers within the
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countries in which they work or which are inconsistent with the
principles set forth in this Code of Conduct.
Environment: Sun Creations Suppliers and Subcontractors will comply
with environmental rules, regulations and standards applicable to their
operations, and will observe environmentally conscious practices in all
locations where they operate.
Customs Compliance: Sun Creations Suppliers and Subcontractors will
comply with applicable customs law and, in particular, will establish and
maintain programs to comply with customs laws regarding illegal
transshipment of apparel products.
Drug Interdiction: Sun Creations Suppliers and Subcontractors will
cooperate with local, national and foreign customs and drug enforcement
agencies to guard against illegal shipments of drugs.
Legal and Ethical Business Practices: Sun Creations Suppliers and
Subcontractors must fully comply with all applicable local, state, federal,
national and international laws, rules and regulations including, but not
limited to, those relating to wages, hours, labor, health and safety, and
immigration. The company’s Suppliers and Subcontractors must be
ethical in their business practices.
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Penalties: Sun Creations reserves the right to terminate its business
relationship with any Supplier who violates this Code of Conduct or
whose Suppliers or Subcontractors violate this Code of Conduct. Sun
Creations reserves the right to terminate its business relationship with
Suppliers who fail to provide written confirmation to Sun Creations that
they have a program in place to monitor their Suppliers and
Subcontractors for compliance with this Code of Conduct.
Environment conditions for the work
Neighborhood safety and cleanliness, attention to approaches.
House keeping up keeping of premises, compound wall, gardens, and
so forth. Passages and doors, white washing of walls and
maintenance.
Workshop, sanitation, temperature, humidity, ventilation lighting,
elimination dust, smokes, fumes, gases.
Control of effluents
Convenience of comfort during work, i.e. operative postures and
seating arrangements.
Distribution of work hours and provision for rest hours, meal times
and breaks.
Supply of necessary beverages , tablets, and milk
Workmen’s safety measures i.e. maintenance of machines and tools,
fencing of machines , providing guards, helmets, aprons, goggles and
first head equipments
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Notice boards, postures, pictures, slogans; information or
communication.
CONVENIENCES
Provision for drinking water and water coolers
Canteen services
Clock room, rest rooms, reading rooms and library.
Transportation facility for employees and workers.
Employees Health services
Factory health centre
Dispensary
Ambulance and emergency aid
Medical examination for employees
Health education and health research
Family planning services
Employees Recreation
Indoor games
Strenuous games to be avoided during the intervals of
work
Corporate Environment Benefits
Sun Creations offers a competitive and comprehensive flexible benefits
package, which includes:
Insurance
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Medical
Dental
Life
Vision
Flexible Spending Accounts
Retirement
Enrichment
Employee Discounts on Jockey Products
Business Casual Work Environment
Summer Hours
Flextime
Vacation Buy
Employee Appreciation Events
Full-service, on-site Cafeteria
Education Support Program and Individual Development
Employee Assistance Program
Adoption Reimbursement
4.5 STORES DEPARTMENT
Stores or storage is the function of receiving, storing and issuing materials. It
involves supervision or the clearance or incoming supplies, to ensure that
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they are maintained in good condition, safely and in readiness for use when
required while they are in storage and issuing them against authorized
requisitions. In short, it is connected with the physical handling and
wellbeing of the stock.
After inspection, the purchased material is taken to store for preservation if
they are meant for stock in the stores department of the company.
Preservation or storage is another aspect of materials management. With
proper management and co-ordination (particularly with purchasing,
receiving and inspection), storage can contribute to effective operation of the
company.
Purpose
The main job of the stores department is to ensure proper receipt of the raw
materials and proper storage of the materials and to follow FIFO method.
Structure of Stores Department
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Sun creations
4.6 FINANCE DEPARTMENT
“Finance” is the life blood and nerve system of any business organization,
just as circulation of blood is necessary in the human body to maintain life
finance is an essential to the business organization for smooth running of the
business.
Financial Management involves managerial activities concerned with the
acquisition and the business purpose. The finance does with procurement of
money taking into consideration of today as well as future need and finance
is required to purchase machinery and raw materials, to pay salaries and
wages and also for day-to-day expenses.
This study is carrier out at Sun Creations, Bangalore. In this company Senior
Manager is the head of the finance department with five deputy managers
and the account officer.
In their modern days, the scope of financial management is not so narrow. It
is broadly concerned with the acquisition and use of funds by a business
firm function is responsible for funds availability working capital
management, capital expenditure control, cost reduction, accounts
consolidation, pricing asset management, insurance and tax management and
management information systems and statuary compliance.
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The finance section at Sun Creations Limited., can be classified in to two
parts
1. ROUTINE FINANCIAL MATTERS OF DAY TO DAY
TRANSACTION
To look after cash and bank accounts.
Investments
Credit and collections
Investors relations
Debit and credit reconciliation.
Correspondence with bankers.
2. SPECIAL FINANCIAL FUNCTIONS
To monitor the financial function of the company.
Arrangement of funds for payment to supplier and creditors.
Working capital management.
Cash flow and funds flow statements projections.
Doing all the accounting jobs budgeting.
Internal audit.
Protection of assets.
Correspondence with financial institutions.
Monitoring investments to be made by the company.
Cash management.
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PAYMENT OF WAGES:
Timely payment of wages to the tune of ten to fourteen works is paid on 5 th
of each month payment is made after preparing the wage sheets incentives
payable to workers based on their productivity and also calculate the casual
labors ranging between 500 to 700 are paid separate calculation.
PURCHASE ACCOUNTING:
Responsibility of correct and times payment to the suppliers/vendors lies
with the financial department, and entry is made into a MRIR control
register. Then it is verified whether the details in the MRIR tally with bill
sent by the supplies to the company. The bill is maintained in the pending
bill file then MRIR contains details like item code, quality purchased,
suppliers etc., it also remarks as inspection department as to whether the
material has been accepted partially accepted or rejected.
BILLS PAYABLE:
Finance department maintains a bills payable control register, which
contains a bills payable number, name of the party, bill date, amount,
income tax to be deducted. The bill is passed after complying the bill
amount as per purchase order is accepted and can be paid along with the
order. The bill payable vouchers is used to pass the journal entry when an
advance payment is made this is attached to MRIR and the bill.
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LIQUIDITY:
Statement of weekly cash flow required and sent to the head office and local
banks.
BUDGETING:
At Page Industries Limited., budgeting is done annually and quarterly
budgeting may be said to be the act of building budgets. A budget is
coordinated plan, expressed in financial terms, for the operations and
resources of an enterprise for some. Specific period the marketing and
production department faculty prepares a budget and finalizes the volume to
be produced. The selling price and amount received from scrap is also
determined based on the budget. The fiancé department has to prepare
expenditure budget capital budgeting.
MIS:
No separate MIS department to regulate information flow. But each
department in company, such as stores, fiancé and production, planning and
control has their own MIS system, which they maintain in order to process
information smoothly.
EDP (ELECTRONIC DATA PROCESSING)
The need to process data is nearly as old as society itself. Data can be
considered as a collection of symbols with a manner. It is always plunk. It
may be number words, charts, names; address etc. computer is an integral
part of EDP. In Page Industries Limited., the EDP section is well equipped
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with 13 monitors and 1 server. The data processing here involves the
processing of large number of receipts output is in form of updated records
reports invoice and other business documents. The Business data processing
oriented computers are designed for getting output with high speed sorting
and facilitate the conversion of stored data into report format.
CASH MANAGEMENT:
Cash is the most important current assets for operation of a business. Cash is
the basic input needed to keep the business cash is the basic input needed to
keep the business running on a continuous basis. It is also the output that is
expected to be realized by selling the service or product manufactured by the
firm.
CASH FORECASTING AND BUDGETING:
Cash budget is the most significant devise plan for and control of cash
receipt and payment. Cash budget is a summary statement of the firms
expected cash inflows and outflows over a projected time period. Cash fore
casting may be done on short or long term basis the commonly used design
for short – term cash forecasts are,
One year divided into months.
One quarter divided into months.
One seventh divided into weeks.
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SIGNIFICANT ACCOUNTING POLICIES:
1. Accounting basis and conversion:
The accounts are prepared under accrual basis and under the historical
cost convention method except for scrap sale proceeds.
2. Expenditure and Revenue Recognition:
The expenses accruing in financial years and ascertainable with
reasonable accuracy on cut off data are provided for in the accounts.
DEPRECIATION:
All fixed assets are stated at cost less depreciation. Fixed assets are
capitalized at cost inclusive of installation and other incidental expenses.
Depreciation in capacitor division is stated on straight line basis. At rates
specified in schedule of the companies Act 1956. In the capacitor division
the depreciation is calculated on basis of written down value method at the
rates specified as under. Building 10% Plant and Machinery and equipment
25%, furniture 10% computer 60%, Vehicles 20% and 25%.
Depreciation on additions during the year has been calculated for full year
and items of plant and machinery and furniture and fixture costing Rs.
5000/- each has been depreciated full.
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INVESTMENTS:
All investments are considered as long term and are stated at cost.
INVENTORIES:
Inventories are valued at lower of cost or cost or net realization value. Stock
of raw materials, stores, spaces and materials are valued at cost. The cost is
determined of FIFO basis. Cost includes expenses on procurements, excise
and custom duties. Cost of finished goods and work in progress includes
cost of conversions and other costs incurred in bringing the inventories to
their present location and condition.
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STRENGTHS
Having a stable own financial resources for running the organization
at domestic and international level
The company has a good market share worldwide. Hence it requires
less awareness or any advertisement for their products.
Adequate Number of Styles and Price Ranges
Highest Brand recall because of its continuous promotion strategies
Good infrastructural facility that support a quick movement of raw
material
Highly skilled and dedicated work force
WEAKNESSES
The outlets do not offer incentives to the customers as offered by
other companies.
They do not have separate unit for training
Sun Creations is giving credit to the dealers and hence cash flow is
very slow.
The cost of the products are high comparing with other competitor,
because of heavy demand for their products the company is not
allowing the employees to have rest periods. All though they may be
paid over time remuneration, the healths of the employees are
affected much.
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OPPORTUNITIES
More buyers are coming to the country
New designs to satisfy the current trend
Utilizing skilled manpower to maximum extended
Modernization of company activities in case of Production (Eg CAD,
SAP etc...)
Can increase market share in the basic range of garment products.
THREATS
The company has adopted and adopting a new technology according
to changes in the production technology, quality and better services,
but the employees is not having that much skill to work with the new
technology as the company is not providing training to the employee
because the employees are not giving any agreement with the
company that they will stay for longer duration.
Many companies are entering the filed of manufacturing of under
garments.
Cheaper import of raw materials from other country
Stiff competition in the basic range of products in by the competitors
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SUMMARY OF FINDINGS
World class sewing machines which are facilitated with international
standards.
Due to cut through in the market there has been some reduction in the
market shares.
The company has quality certification for ISO-9001, ISO-14001, and
ISO - 18001.
QS-9000, TS 16949, QI-Certification which is meant for its quality
Safety, productivity and environment protection.
Insufficient time for completing task.
Improper management of Raw materials.
Almost all employees have undergone training in various levels.
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SUGGESTIONS
Increase the product profile.
The company should hire more number of skilled workers.
The company should satisfy customer needs and try to create a good
interaction with them.
Utilizing skilled manpower to maximum extended
Can increase market share in the basic range of products
There should be contest for dealers and the dealer making the highest
sales and timely repayment can be rewarded or can be offered free
packages tours, cash incentives, gift vouchers etc.
Pop display materials must be more attractive. If there are any
discounts offers words like free, hurry, offer, product name and gifts
etc should be made highly visible in the pop materials like danglers,
posters and sun boards.
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Conclusion
It gave an opportunity to learn the practical knowledge in the
corporate world. From the study it can be said that, the brand image of Sun
Creations products of the company is well established in the market. The
demand for the products is increasing at the same time while there is severe
competition in the market. Competition is growing faster in such a way that
the market is becoming wider and more competitors are arising. The
organization has to give importance to dealers who play an important role in
the market. Hence the company has to under take aggressive promotional
activity to improve their sales.
To conclude, it was an experience which has given an insight on
how to apply and use the managerial concepts, functions, aspects practically
in the corporate world. Its very important for individuals to get adjusted to
the organization work culture. One more important aspect was work culture
in the organization. Sun Creations has on excellent work culture for its
employees hence it is able to perform better and maintain consistency in the
global market.
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BIBLIOGRAPHY
WEB SITES
1. www.ourindia.com/nift
2. www.ieo.org
3. www.apparel.indiamart.com
4. www.indiagarmentexports.com
5. www.suncreationindia.com
BOOKS
“Production and Operation Management” by Ashwathappa-1st
Edition , 1999, Himalaya Publication.
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