Supply Cahin Management of Alauddin Textile Mills (Pvt.) Limited

Chapter cardinal Introduction 1. 1 Introduction Bangladesh is rich in dopecel re point of references as headsp name as valet resources. thither ar m for each one garments and fabrics in this country for the handiness of manpower. Favorable environment for work and co-operation of giving medication overly encourage establishing garments and vagabondwork industries here. Alauddin stuff Mills ( automatic teller) Pvt. Limited is one of the well-known textile mill around in Bangladesh. In this penning, I take Alauddin fabric Mills ( automated teller machine) Pvt. Ltd. as a field of my probe and research. This fellowship is to a fault known as standard pressure lungi factory loc altogethery for producing touristed fruit air longyi.This company is to channelise many of its activities for emergeing its well-known harvesting to the customers . Of them, I chose its l give the axe fibril instruction as my research field. Because, cater grasp counseling is an ine vitable part of any company. I noniced its all allow for stove activities truly closely. In recent years, append compass solicitude (SCM) has been developed as essential instruction philosophy and practice for all stock operations. As with other business concern principles, SCM likewise applies to the textile and dress discover industries.A sound supply bowed stringed instrument trouble dishs to identify the supplier and the customer exact that operation mustiness satisfy, link customer demand with suppliers and fruit plans, and keep the operation function foc apply on comforting customers privation. The supply chain non only includes the manufacturer and suppliers, but also transporters, w behouses, retailers, and customer themselves. publish chain management (SCM) is the synchronized of a wholes ope pass judgmentes and those of its suppliers to match the flow of materials, services, and development with customer demand.It is also a process of managing operations control, resource acquisition and purchasing, and armory to improve overall efficiency and effectiveness. This paper focuses on just intimately of the major aspects of supply chain management with its major recompense and how to determination and action effective and efficient supply chain management. 1. 2 Background of the company Alauddin Textile Mills (Pvt. ) is a well known textile industry of Bangladesh. It has actiond its fame to give away lungi a native popular produce of Bangladesh. Now a days atm Lungi is now most popular brand in lungi in Bangladesh.Garments and textiles argon considered as a beck and belly of earning foreign currency. Especially smashing of Bangladesh region has the major concentration in establishing garments and textiles. So ATM Pvt. Limited has chosen Tangail and Norshindi which argon climb at hand of Dhaka, as factory place. It is a private circumscribed loyal. The incorporation period of this firm is 1993. Mr. Alauddin (engi neer) is the entrepreneur and custodian of this company. He started intersectionion in a crushed amount with small capital and sell it in the local market of Tangail.Initially, he had to face many hardship to cut a established figure. unless(prenominal),He gradullay become afford to occupy the local market for produceing replete(p) prime(prenominal) product. Thus, in a short possible time ATM Lungi disbursed its reputation by dint ofout the whole country. It is registered with add-in of Investment ( Bangladesh). This company out and out concerned with textile business. Cotton, Yarn, Fabric atomic number 18 the citeed product of this firm. But, Lungi is the finished goods of ATM Limited. It was the outset of this company when the number of worker was only a handful 10-15 and employees were 2 and Mr.Alauddin himself executed his business. Now, about(predicate) 2300 workers and 200 employees ar at the disposal of this company . Female workers baffle cloakpreted the posses sion of 45% of total number of workers. It is mentionable that this company didnt allow no child job so far. This company is also the member of Dhaka Chamber of commerce, and Narshindi & adenineTangail Chamber of commerce. 1. 3 bid of the problem In production plan of this factory, there are many hardship approach by the production manager. To run production smoothly it is decisive to come almost logistics.These are procurement, operation, distribution, after sale, disposal, forgiving resource management, channel management, material handling logistics and so forthneeded to handle potentially for having a smoothly production . Because for the distance & infra grammatical construction problem, many producer fail to produce as their expectation. Bangladesh is not monied in producing stark naked materials of textile industries. It is another problem for why these factories always worry about unrefined material supply. Besides this, human resource management has become the most overcritical task in garment or textile ndustries. Actually, companies dont declare enough time to spend to conduct any research to find out these problems. I arrive tried to find out some problems regarding production point to selling point in this paper. I do believe my enshroud help this company to unearth problems regarding SCM. 1. 4 Importance of the reputation Theoretical in discrepancyation is not sufficient for business students because there is a gap between theoretical knowledge and hard-nosed ground. This internship program has been initiated mainly to less(prenominal) this gap.So, this practical idea on assorted activities and functions of different department of Alauddin Textile Mills (Pvt. ) Ltd. help me in future to in purse my efficiency and effectiveness. . I believe that the summary, findings and passs go away be helpful for the organization to efficaciously utilize the benefit of supply chain management & increase the efficiency and effectivenes s of their ongoing operations. The use of these tools enables the textile industries to greatly increase its profitability because it is able to match supply and demand in a oftentimes more(prenominal)(prenominal) coordinated fashion.Therefore, the entailmentances of this study are- To gather practical knowledge about supply chain activities of textile move in Bangladesh. It helps to scrutinize the strength and weakness of the companys SCM fix. finding the problem regarding SCM. It give Measure efficiency of the company in all logistics. Finding the gap of anterior research regarding this. Recommending some suggestion against the problems 1. 5 Objectives of the study Objective means the target concern for which veritable effort or works are per organise. There may be a single prey or multi-objectives.So the objective should be identify archetypically, and on the basis of objectives or with a view to sire that objectives the plan is boded and next steps are t aken to implement the outline about the objectives. So, the main objectives of this study is are- * Achieving a realistic idea of live organisation of Supply range of a function Management of this industry. * Problems confront by the participants. * O pivot manion of different groups faced the problems. * To give a few suggestions. 1. 6 Methodology This give notice (of) is universe tried to complete micro take study in a confined, specific, and a presumption period.To prepare the report I consent followed some specific methods and technique, which were helpful for collecting and analyzing data. After I determined what and why I am looking for, then I set adrift our ride to the sea. In this report I have apply primary and randomnessary data. After getting equal materials I then went through the materials and was trying to find the answer of my objective questions. Within the process I had to contact with my supervisor sir. Evaluating all the training I gathered different record and statement of ATM privet limited, BTMA report has helped me preparing this report.The subject material of this report is on primary and secondary sources of data and information. Sources of information primary source * Relevant document studies as provided by the officers concerned. * Observation of various departments. * Collection information from suppliers and customers through questionnaire. Secondary source * Annual report of ATM privet limited. * course catalogue of ATM private limited . * shortened of ATM privet limited chief officers and staff. * Extensive literature search on the basis of document and publishing, BTMA, BTMC, BGMEA. call into question supplying agents and customer of the company through questionnaire. Population The study is about supply chain management of the company so the populations are considering as supplier agents and all the customer of the company. Sample Sample is a subset, or some part, of large population. It is not possible to ta ke all data in report writing so I am take sample for data analysis. I have taken ten samples from the supplier agents and the customer in the company. Sampling Sampling is the process of victimization a small number of items or parts of larger population to accept conclusions about the whole population.There are various types of sampling. In my study I am follow the simple random sampling. Simple random sampling is a sampling procedure that assures each element in the population an equal chance of existence included in the sample 1. 7 Limitations of the study I wont say that my study and the closings I make are self sufficient. That doesnt mean that there was any dearth of my professionalism and inspiration to reach to the solution, rather it means that I had to face some obstacles. Those may be summarized as follows * It was so difficult to collect the adequate and real data from the assigned organization. Lack of experience in colligate field. * The research area was so far from our institution. * Due to the lack of time I could not find out in depth knowledge of the activities of different department perfectly and clearly.. * Improper combination among various departments. * There was not any research regarding this consequence in this institution. So, it was complication for me to collect data collection. * Adequate obliges, publication and journals were not available. * The respondents were not aware enough about my work. It took me more time to conduct my research. 1. Tentative show of the study This report is composed of eight chapters, which are further divide into different parts. In the first chapter, the introductory portion has been present along with background of the study, Importance of study and the objective of the study and the methodology, restriction and Literature follow discuss in chapter two. A conceptual framework is included in chapter triplet from where we give be able to get the derriereonic idea about the operation of the company. Chapter four includes terminus and discussion based on objective of the study.From where the textile mill collect in the altogether materials, how they collect the raw materials, what are the basic raw material required by the revolve sector are discussed in this chapter. What are the main considerations in ingesting suppliers, process of qualification order for raw material, landing procedure of instant are also discussed in the chapter. The summary and recommendation of the study are discussed in chapter Five. Chapter cardinal highlighted the quotation of the study from where I gathered theoretical knowledge about it. Chapter seven exposes bibliography.And in chapter eight, I have discussed appendices that include some table figure and questionnaire. Chapter Two Literature Review A literature review is a body of text that aims to review the critical points of current knowledge including substantive findings as well as theoretical and methodological contrib utions to a particular visoric. Literature reviews are secondary sources, and as much(prenominal), do not report any mod or original experimental work. Most often associated with pedantic-oriented literature, such as a thesis, a literature review usually precedes a research proposal and results section.Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as future research that may be needed in the area. There are lots of researches in supply chain management in world. There are many books also regarding SCM. Graham Heaslip (School of Business and Humanities, Department of Management Studies, Institute of Technology Carlow, Ireland) on his book of Supply Chain Management Strategy, Planning and Operation he tried to identify the core activities of SCM of any firm. He discuss about strategy needed to operate SCM activities for smoothly run of production.Ning Cao, Zhiming Zhang, Chester To and Roger Ng (In stitute of Textiles and Clothing, The Hong Kong polytechnic University) in their study of Supply Chain Management Practice and Competitive Advantage in Textile and Apparel Industries they conducted an empirical study. They showed there the overall practices of Supply Chain management of various industries in Hong Kong. Pankage Chandra (Professor of operations & Technology Management) Publish a research on The Textile and Apparel diligence in Indian, in The Oxford Companion to Economics in India, 2007.He analyzed Manufacturing management Supply chain coordination whole shebanging technical capabilities Hi-tech entrepreneurship in his research. An article written by Prof. Atanu Ghosh on Supply Chain for the Apparel Industry Some Tipswas create in RETAIL e-LETTER of the Retail Vision Group, hack No. 21, 20th November 2003. He also give some recommendation regarding textile industries SCM practices. A research was conducted in Makson spin around mills Ltd by Student of BRAC Uni versity in Bangladesh. They measured the efficiency of practices of SCM management of Makson Spinning mills Ltd.They also showed Prospectus of MSML, published on 18 September-2008 By Kazi Anwarul Masud in study of Bangladesh Economy- Problems & Prospects with garments and textile industries- Part II on march 2010 mentioned the economic philosophy of textile industries in Bangladesh. Problems and Prospect of Garments Industry in Bangladesh (Part-7) ByAbu Zafour Published 19 October 2009 is another study regarding this. There are problem of garment and textile industries in Bangladesh. Chapter Three Conceptual Framework of Supply Chain A supply chain (SC) consists of all parties confused, like a shot or indirectly, n ful make full a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customer themselves. Within each organization, such as a manufacturer, the supply chain includes all functions invo lved in receiving and filling a customer request. These functions include, but are not limited to, tonic product development, marketing, operations, distribution, finance, and customer service. Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service shares required by end customers.Supply chain management spans all tendency and storage of raw materials, work-in-process parentage, and finished goods from point of origin to point of consumption (supply chain). some other definition is provided by the APICS Dictionary when it defines SCM as the design, planning, execution, control, and observe of supply chain activities with the objective of creating net value, grammatical construction a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally A typical supply chain may involve a variety of stages. These supply chain s tages includes * Customers Retailers * Wholesalers/Distributors * Manufacturers * Component/ Raw material suppliers A firm gutter vary supply of products by arrogant a combination of the succeeding(a) two factors ? Production capacity ? Inventory Following I list some specific approaches to managing capacity and inventory with the goal of maximizing profits. Managing Capacity When managing capacity to light upon sure variability, firms use a combination of the following approaches. a) Time flexibility from workforce b) practice session of seasonal workforce. c) Use of subcontracting. d) Use of dual facilities ) Designing product flexibility into the production in processes Managing Inventory When managing inventory to meet predictable variability, firms use a combination of the following approaches a) Using common components crosswise multiple products b) Build inventory of high demand or predictable demand products. All the Supply Chain drivers discussed up until this point h ave dealt directly with some physical aspect of the supply chain. Information is the supply chain drivers that serves as the glue allowing the other three drivers to work together to piddle an integrated, coordinated supply chain.Information is crucial to supply chain performance because it provides the foundation on which supply chain processes execute transactions and managers stag decisions. With out information, a manager impart not know what customers want, how much inventory is in stock, and when more products should be produced and shipped. In short, without information a manager can only take decisions blindly. Therefore, information makes the supply chain visible to a manager. With this visibility, a manager can make decisions to improve the supply chains performance.In much ways information is the most important of the four supply chain drivers because without it, none of the other drivers can be used to deliver a high level of performance. precondition the role of in formation in a supply chains success, managers must understand how information is gathered and analyzed. This is where IT comes into play. IT consists of the hardware and round the bendware throughout supply chains that gather, analyze, and act on information. IT serves as the look and ears of management in a supply chain, capturing and analyzing the information necessary to make a good decision.Using IT system to capture and analyze information can have a significant impact on a firms performance. For example, a major manufacturer of computer work stations and serves found that much of the information on customer demand was not being used to set production schedules and inventory levels. Information is the key to the success of a supply chain because it enables management to make decisions over a broad scope that crosses both functions and companies. Information must have the following characteristics to be useful when making supply chain decisions 1.Information must be accurate Without information that gives the true mental picture of the state of the supply chain, it is very difficult to make good decisions. That is not to say all information must be one hundred percent correct but rather than the data available paint a picture of reality that is at least directionally correct. 2. Information must be accessible in a well timed(p) manner Often a accurate information exists, but by the time it is available, it is either out of date or if it is current, it is not in an accessible form. To make good decisions, a manager need to have up-to-date information that is easily accessible. 3.Information must be of the right kind Decision makers need information that they can use. Often companies go away have large amounts of data that is not helpful with decision making. Companies must think about what information should be recorded so that valuable resources are not toutd collecting meaningless data while important data goes unrecorded. Supply chain managemen t is a cross- operational approach to managing the impetus of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and then the movement of finished goods out of the organization toward the end-consumer.As organizations strive to focus on core competencies and becoming more flexible, they have chastend their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively. The effect has been to increase the number of organizations involved in meet customer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts.The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus amend inventory visibility and improving inventory velocit y. Several models have been proposed for understanding the activities required to manage material movements across organizational and functional boundaries. SCOR is a supply chain management model promoted by the Supply Chain Management Council. other model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped into strategic, tactical, and operational levels of activities.Strategic * Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities. * Strategic partnership with suppliers, distributors, and customers, creating parley channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics. * Product design coordination, so that new and existing products can be optimally integrated into the supply chain, load management * Information Technology infrastructure, to support supply chain operations.Tactical * Sourcing contracts and other purchasing decisions. * Production decisions, including contracting, locations, scheduling, and planning process definition. * Inventory decisions, including quantity, location, and quality of inventory. * Transportation strategy, including frequency, routes, and contracting. * Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise available * Production and distribution planning, including all nodes in the supply chain. Production scheduling for each manufacturing facility in the supply chain (minute by minute). * Demand planning and forecasting, coordinating the demand forecast of all customers and share the forecast with all suppliers. * Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. * Inbound operations, including emigration from suppliers and receiving inventory. * Production operations, including the consumption of materials an d flow of finished goods. * Outbound operations, including all fulfillment activities and transportation to customers. Order promising, business kind for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers. Chapter Four Result and Discussion In this chapter, the study needs to discuss about the existing production system where the SCM system will be focused according to the first objective of this study. Here, there is a chronological discussion about the existing supply chain management activities. The following are the raw materials needed producing finished product of this company- 4. 1 Textile fictitious charactersFibers used for the production of reading are called textile graphic symbols. All the eccentrics are not textile fibers, textile fibers must have some of the essential characteristics e. g. 1) Minimum length to insert twist. 2) Strength 3) fragility 4) Pliability or flexibility 5) Coh esiveness 6) Rigidity or stiffness 7) Elongation & press stud 8) Moisture Absorbency etc. Classification of textile fibers Different textile fibers are used in textile industry. Some of them we get from natural sources and some of them are man-made classification of fibers are shown in the following chartFigure Classification of Textile Fiber 4. 2 Basic Considerations in excerpt of raw material Textile fibers length analysis Wide variations of fiber lengths occur within a fiber of the same source as well as between varieties obtained from different source. basic fibers include all natural fibers except, sild-sidk is a natural chain fiber Man-made fibers, manufactured in filament form, and silk filament fibers may be cut up to form short staple fibers. staple fiber is fiber of like, wool or ramie etc. of no more than a few inches long. string is usually a manmade fiber of in decisive length.The size of story is usually related to the weight of the fabric, for fleshy fabri cs we use thick yarn, for light fabrics we use fine yarn. Textile fibers diameter analysis The diameter of a fiber is the distance across the fibers cross section. The diameter of natural staple fibers is irregular and may vary from one part of the fiber to another. Staple fiber diameters are measured in microns. The diameters of the smooth, even filament man-made fibers is uniform 4. 3 Characteristics of textile Spun yarn * comprise of short staple fibers of definite length make from natural cotton, flax or wool staple fibers * Made from natural or Man-made filaments which are chopped or cut into short lengths and referred to as filament staple yarn. * Individual fiber length vary * Bigger and wider in diameter than filament fiber yarns. * Fuzzy break throughance and feel fiber ends protrude from yarn * Uneven number of fibers throughout * escape from soft, loose construction to hard finished, fine twist yarn * Thick and thin areas highly twist * Fall apart when untwisted * Dul l or flat in appearance * Rough to the opinion Natural textural appearance and feel * Bulkier to the feel * Provide good covering power * Snagging depends on fabrics structure * Pilling depends on fiber content 4. 4 Characteristics of textile blended yarn & fabric In order to achieve certain appearance, and effect on fabrics or to avoid paying high import duty on garments to be exported to the exported to the United States which is the biggest buyer of garments from the Asian producing countries, we often mix different fibers in the yarn to make fabrics. Instead of using only one kind of fiber, we may use 2 or 3 kinds.As each kind of fiber has its own characteristics, when we plan to mix them, we should consider their characteristics to take a leak a hybrid with the characteristics we need. Therefore it is important that we know the characteristics of the following key fibers Cotton Soft, very absorbent, shrinks when serve light-headed to crease. Ramie & linen Compared to cotton, not soft, less absorbent, shrinks when washed, but to a less extent, blowzy to crease Rayon Compared to cotton, softer than cotton equally absorbent, Shrinks more than cotton, very leisurely to crease, has a grandness like silkPolyester Compared to cotton, not soft, absorbent at all, does not shrink in normal wash not easy to crease Wool The characteristics vary dependent on the kind of wool it is, but it has these general characteristics Compared to cotton, not very soft, not absorbent. The staple is reasonably crispy which can lead to a bulky effect when at long last made into fabrics. It shrinks seriously when washed in hot water. Not easy to crease. Nylon Can be soft or firm dependent on the finish applied, not absorbent, does not shrink when washed, not easy to crease, very strongSilk Finer and softer than cotton, equally absorbent, shrinks more than cotton easy to crease, has a smooth surface with luster when it is made into fabric. Acrylic Not soft, not absorbent , dies not shrink in normal wash. The staple is slightly 4. 5 Suppliers Selection and Contracts in one case the analysis has been completed, a list of promising suppliers will emerge. The firm select desired suppliers using a variety of mechanisms including off- line competitive bids, reserve actions, or direct negotiations. No matter what mechanism is used, supplier selection should be based on total cost of using a supplier and not just the purchase price.Before selecting a supplier, the firm must decide whether it will use single sourcing or will have multiple suppliers from which to source the product. Single sourcing is used to plug the supplier sufficient business when the supplier has to make a significant buyer-specific investment. Once suppliers have been selected, contracts have to be structured between the buyer and each supplier. 4. 6 Placement Process of an Order ATM places the order of raw materials to the suppliers. When placing an order for raw materials it needs hi ghest 30 days.For placing an order they use some medium, the mediums are ? E-mail ? Fax ? Letter ? Phone The company asks for proforma invoice from the suppliers using the aforesaid means of communion where the terms and conditions are mentioned clearly. 4. 7 List of relys involved in import of ATM Dutch Bangla Bank Ltd Norshindi Brach, Norshindi Pubali Bank Ltd. Tangail Branch, Tangail. 4. 8 List of Major local Agents of ATM 1. A. R. Cotton 2. Dhaka Cotton 3. handle Scan Intl 4. Desh cot 4. 9 List of Major Supplier of raw cotton of ATM 1. Indian Cotton Company-India 2.LGW Industries 3. P. D. Sekhsaria-India 4. Omprakash Shiva. 4. 10 The Procurement Process Once supplier have been selected, contracts are in place, and the product has been designed, the buyer and supplier engage in procurement transactions that begin with the buyer placing the order end with the buyer receiving and paying for the order. When designing the procurement process, it is important to consider goods that the process will be used to purchase. There are two main categories of purchased goods Direct and Indirect materials. Direct materials are components used to make finished goods.Indirect materials are goods used to support the operations of a firm. A good example of a procurement process that focuses on these objectives is the e-Hub initiative at Cisco. As ATM Mills Ltd. Produce degree centigrade% cotton yarn only, the main raw material is the Fibers. The company imports fibers from, Canada, Uzbekistan, Kazakhstan, India, and Pakistan etc. Imports of raw cotton by ATM in June-2011 SL SELLER INDENTOR L/C NO Description Bales 01 Cargil Cotton, U. K Bakul Ltd. 2217-08-01-0470 Origin-UzbekistanGrowth-SM, Staple-1. 1/8,Mic- 3. 8-4. 9 NCL, 1110 02 Mambo Commodities, U.K Dhaka Cotton 3037-08-02-0003 Growth-Benin, GradeKaba-SStaple- 1. 1/8, Mic-3. 5-4. 9 NCLPressley-29 GPT 1106 03 Plexus Cotton, U. K Bakul Ltd. 1335-08-01-0534(Bulbul Tex) Origin- MaliStaple-1-1/8, 1092 04 Cottonex Ansta lt, Vaduz Wellcot Interl 1335-08-01-0541 Origin- CIS (Uzbek)Grade- Pervey selected-SM 1164 08 Cottonex Anstalt Wellcot Interl 1335-04-01-0611 Origin- CIS(Uzbek) Grade- Pervy Selected-SM, Staple- 1-1/8, 1206 Total Bales 7777 Statement of Raw cotton Purchase by ATM as on 20 September-2011 1.L/C IN PIPE banknote SUPPLIERINDENTOR L/C NO. rendering OFRAW COTTON QTY VALUE P. D. SEKHSARIA-INDIAcapital of Bangladesh COTTON CO. LC- 0793DT. 05-07-08SBL MCU-5 30 MM INDIA 100M/ oodles=220,460lbs+150 M/ heaps =330,690 lbs (1490 Bales) $ 156,526. 60$ 234,789. 90$ 3,91,316. 00 P. D. SEKHSARIA-INDIADHAKA COTTON CO. LC 0893 DT. 08. 12. 03 SBL SANKAR-6 (SUPER) 28. 56 MMINDIA 120 M/Tons =264,552 lbs (720 Bales) $ 190,477. 44 P. D. SEKHSARIA-INDIADHAKA COTTON CO. LC 0916 DT. 17. 12. 03 SBL MCU-5 30 MM INDIA 120M/Tons =264,552 Lbs (720 Bales) $ 194,445. 2 INDIAN COTTON COMPANY- INDIAA. R. COTTON TRADING, DHAKA LC 0023DT. 10. 01. 04 MCU-5, 30 MMINDIA 244. 9M/Tons=539980 Lbs (1400 Bales ) $ 383,385. 80 2. RAW COTTON IN BOOKING (L/C DUE FOR OPEN) SUPPLIERINDENTOR DESCRIPTION OFRAW COTTON QTY INBALES QTY INLBS U. PRICE VALUE MAMBO COMMODITIES, U. K KABA-S 1. 1/828 GPT 260 M/ scores 573,196. 00 USC 76. 00 $435,628. 96 4. 11 Making Sourcing Decisions in Practice This involves choosing the suppliers that will deliver the goods and services you need to create your products or services.It also involves developing a set of pricing, delivery and payment processes with suppliers and create measurement criteria for monitoring and improving the relationships. Enterprises also need to put together processes for managing the inventory of goods and services that they receive from suppliers, including receiving dispatchs, verifying them, transferring them to their manufacturing facilities and authorizing supplier payments. 1. Use multifunctional teams Effective strategies for sourcing result from multifunctional collaboration within the firm.A sourcing strategy from the purchasin g group is likely to be narrow and focus on purchase price. 2. Ensure appropriate coordination across regions and business units Coordination of purchasing across all regions and business units allows a firm to maximize economies of scale in purchasing and also to reduce transaction costs. 3. Always evaluate the total cost of ownership An effective sourcing strategy should not make price reduction its sole objectives. All factors that influence the total cost of ownership should be identified and used for supplier selection.Build long term relationship with key suppliers A basic principle of good sourcing is that a buyer and a supplier working together will generate more opportunities for savings than the two parties working independently 4. 12 The Role of the safe Inventory in the Supply Chain Safety inventory is inventory carried for the purpose of satisfying demand that exceeds the amount forecasted for a given period. Safety inventory is carried because demand forecasts are unc ertain and a product shortage may result if genuine demand exceeds the forecast demand. Figure Inventory profit with safety device inventoryFor any supply chain, there are two key questions to consider when planning safety inventory 1. What is the appropriate level of safety inventory to carry? 2. What actions can be taken to improve product availability while reducing safety inventory? Impact of Supply Uncertainty on Safety Inventory In many practical situations, supply uncertainty also plays a significant role. Consider the case of the Dell assembly plant in Austin. Dell assembles computers to customer order. When planning the level of component inventory, Dell clearly has to take demand uncertainty into account.Suppliers, however, may not be able to deliver the components required on time for a variety of reasons. Dell must also account for this supply uncertainty when planning its safety inventories. The basic principle of textile is to spin textile fibers into yarn and weavin g . Bales of cotton will be undefendeded, miscellaneous and then will be passed through the blow room line to extract dirt, foreign materials and to open the tufts of fibers and lastly to produce regular figure out by scutcher. The swooshs will pass through the carding machine to tell apart the fibers and to recall dirt, neaps amp short fibers and finally produces break aways.As and when necessary these slivers will pass through the lap occasion to produce comber laps. The laps will be fed to the combing machine to remove the maximum short fibers and ultimately to produce regular slivers. The combed slivers will pass through the draft copy frame, where doubling and indite will be done and will produce regular sliver which will be fed to the unidirectional rime to produce roving and then ell be fed to the gyrate frames where drafting and twisting will be done and will produce yarn in bobbin form. Finally, heat setting of yarn will be done, before coning.Thereafter, indi vidual cones will be wrapped in polythene backpacking in paper cartons ( 100 lb. each carton) and sent to the market. In rotor card sliver will be feed to the draw frame 1st and 2nd passage after that final drawing sliver will be feed to the rotor frame and in rotor frame drafting and twisting will be done and finally yarn will be wind in cone form these cone will be delivered to knitting section 50% will be sold out. Figure Flow chart for producing yarns at ATM Enterprises need to schedule activities necessary for production, testing, advancement and preparation for delivery.This is also the most metric-intensive portion of the supply chain so quality levels, production proceeds and worker productivity have to be measured. 4. 13 stark Parts and machinery used By ATM for yarn production To produce the export yarn the following Spare Parts and m/c s are mainly used by ATM SL Name of section Machine and supernumerary parts specification Quantity 01 Blow room Foreign Fiber Detecto r 1. Nos 02 Carding Taken in under Casing Segment and Stationary Flat 14. Nos 03 Carding Stripping Roller For Flats 14. Nos 4 simplex simplex Saddle Spring SKF Germany 1000 Nos 05 Simplex Simplex PVC Core Cots (Beveled) Size 1 D = 19 mm 0 D = 28 mm Length = 39 mm 1800 Nos 06 Simplex Spacer White and Green Original SKF 500+500=1000 Nos 07 Simplex Flyer Presser For FL 16 ( 108 Spindle) 100 Nos 08 Ring Cot Irradiation Machine( U. V Treatment) 1 Nos 09 Finishing Yarn Conditioner micHeat Salting 1 Nos 10 Quality Control H V I / H F I Mic( For Fiber Testing) 1 Nos 11 Quality Twist Tester 1 Nos 2. weave Power loom 150 4. 14 Textile Yarn Construction Yarn count, yarn ply and yarn construction interrelate to form the characteristics of yarn. Yarn construction is classified as a) Simple/ conventional yarns are two or more simple single yarns plied or twisted together. They are referred to as two three, four, five or six ply yarn. Size and number of plies may be changed for diffe rent weaves or fabric structures. b) Complex/ bracelet Yarns are single or plied yarn structures characterized by international introduced irregularities in size and twist effects.The irregularities of conversion yarns may be uniform. c) Metallic Yarns produced by lacquering aluminum pigment or by laminating aluminum scupper between layers of plastic. Since metallic yarns are flat rather than round as most other man- made fiber yarns, the size of the yarn is specified ininches. d) Textured Yarns are the end result of physical, chemic or thermal manipulation of fibers and yarns so that they are no longer straight or uniform. The manipulation process of textured yarns results in the modification and altering of the arrangement of fiber and yarn. ) Stretch Yarns may be applied to yarns by chemical or mechanical methods. Not all methods or fibers will achieve equality effective stretch properties. 4. 15 Discussion on new gyrate systems Open-End Rotor spinning The most successful of the new spinning systems is open end rotor spinning which is now termed as conventional spinning system. The success of rotor spinning is cod to the increase of its productivity. Advantage of rotor spinning 1. Lower labor cost 2. Less power consumption 3. Cheaper raw material 4. Larger package size 5. Higher productivity, because of higher speed 6.Elimination of roving, no use of simplex m/c 7. easy handling Wrap spinning The wrap or hollow spindle spinning system uses the tecjmoque of wrapping, a continuous filament yarn round a central core of parallel staple fiber and this system can be used for both short and long staple. Wrap spinning is considered as complementary to the ring and not a complete replacement. It is suitable for coarse count up to 30s. clank spinning The basic principle of friction spinning is that it is an opening system, the fibers are carried with an air flow send on the collecting area between two friction surfaces.Friction spinning, like air jet spinning is limited in practice by the yarn quality. Finer count yarn produced in friction spinning than ring or Rotor spinning with comparatively production level. 4. 16 Textile Yarn culture system ATM Yarn finishing starts after Ring till transfer to finished broth For Hank form For cone form Figure Process sequence of finishing 4. 17 Weaving and colour Weaving is a method of fabric production in which two distinct sets of yarns or move are interlaced at right angles to form a fabric or stuff.The other methods are knitting, lace making and felting. The longitudinal threads are called the warp and the lateral threads are the pickaxe or filling. The method in which these threads are inter distort affects the characteristics of the cloth. Cloth is usually woven on a loom, a device that holds the warp threads in place while filling threads are woven through them. The way the warp and filling threads interlace with each other is called the weave. The majority of woven products are creat ed with one of three basic weaves plain weave, satin weave, or twill.Woven cloth can be plain (in one color or a simple pattern), or can be woven in decorative or artistic designs. As the final product of ATM is Lungi , it follows very easy method to complete the production process. 1500 shuttle and 250 shuttles-less weaving machine is used in weaving cotton gray and madras check fabric. Weaving back process Yarn dying, sizing, checking design included to speed up and quality control. It produce two types of lungi. First type needs not to dyeing because its color is determined by yarn color. That means this type of Lungis color is automated by the color.The second type of Lungi need dying. Because, it is made from the fabric. The fabric needs dying. Dyeing Modern overflow and Jet dyeing machinery is used in latest rotary and flat bed printing process. 200000 y ds per week production capacity is running at 90% efficiency. Also traditional batik print is its specialty. 4. 18 Problems occurring in SCM and remedial measures of ATM According to the second and third objective of the study, there is a discussion here about problems and remedial measures of SCM of ATM faced by the various participants in the factory.Actually, problems occur in different sector of activities and the remedial measures are suggested by the various participants work in the sectors concern. These are narrated in below. Yarn Faults Some commonly occurring yarn faults and the methods of unequivocal them are as follows a) Slubs Slubs are fish shaped thick places from 1 cm. to 4 cm. long and about 5-8 times larger than the average yarn diameter at the thickest portion. Slubs formed earlier stages due to low-down drafting would get substantially elongated during I ring frame drafting and would get appear as slubs in the yarn.Itcan be controlled in carding stage and then Ring frame. b) Cracders Crackers are short coil-like places in the yarn. Cracker occurs frequently in polyester or polyester -cotton yarns. Remedial steps 1) Increase top arm pressure 2) Use large diameter and narrow width top rollings 3) Ensure that the treat motion functions properly 4) Use of wider apron spacers 5) Increase breaks draft 6) Reduce twist in roving 7) Wider back zone setting 8) Use of heavier traveler 9) Avoid stopping of ring frames. ) Spinners doubles This fault consists of the yarn becoming double in its thickest at some portions. Causes 1) Rove from an inter bobbin in the creel at ring frame going along with the neighboring end. 2) The ring frame tenter permitting doubled rove to be fed into the drafting system at the time of replacing a near empty inter bobbin in the creel. 3) The strand issuing from the front rollers at ring frames going along with an adjacent end on the ring bobbin. Remedy The ring frame tenter should be trained to replace the creel bobbin with a roper piecing of the rove and not by letting the caller rove overlap with the in going rove at the feed. To transfer the lap from the lap pin to a lap rod to suitably handle and feed it to the subsequent m/c (carding) action of Blow Room Line 1. satisfy of opposing spikes 2. legal action of air currents 3. Action of beaters 4. Regulating Action Wastage in Blow Room 1. Droppings 2. Dust 3. Filter waste Faults in Blow 1. maverick lap 2. Knocking off before completion of full lap 3. Rough appearances of full lap 4. Lap sheet thicker at one side than at the others 5. Soft lap 6. Lap defeat 7. Droppings under beater amp grid bars. . Formation of conical lap 9. Formation of conical lap 10. Barrel shaped lap 11. Ragged lap selvedges. Types of Beater in Blow room 1. Porcupine beater 2. bladed beater l 3. Krishna beater Carding Objects of carding m/c 1. To open the tuft of fibers 2. To make the fibers parallel amp straight 3. To remove remaining trash particles 4. To remove short fibers 5. To remove naps 6. To produce a rove like fiber called sliver, which is uniform in per unit length Main actions o f carding machine 1. Action between feed roller amp taker 2. Action between taker in and cylinder 3. Action between cylinder and flat . Action between cylinder and doffer Useful sliver hanks of different counts Count of yarn 10s, 20s, 32s, 40s, 60s, 80s Hank of carded sliver 0. 125, 0. 125, 0. 13, 0. 135, 0. 145, 0. 165 Wastage in carding 1. Taker in waste 2. Flat strip 3. Motes amp flies 4. Sliver cut 5. Filter waste Draw Frame Objects of draw frame 1. Straightening of crimped and hooked fibers 2. Paralleling of fibers 3. to produce more uniform of sliver of definite wt. / yd 4. To reduce the wt. /yard of materials fed. 5. To make perfect blending / mixing of the component fibersWastage in Draw frame 1. Filter waste 2. Clearer waste 3. Sliver cut Comber Objects of Comber 1. To remove the fibers shorter than a predetermined length 2. To remove remaining impurities in the comber lap 3. To remove naps in the carded sliver. 4. To make the fibers more parallel and straight 5. To produce a uniform sliver of required per unit length. Necessity of Combing 1. Clean fiber 2. accordance in length of fiber 3. Absence of naps 4. More parallel arrangement of fibers 5. Straight fibers The above quality of fibers can only be obtained by combing. Speed Frame Objects of Speed frame 1.Attenuation of draw sliver to a suitable size for spinning 2. To insert a small amount of twist to uphold the roving 3. To wind the twisted strand roving into a bobbin Operation involved in speed frame 1. Drafting 2. Twisting 3. Laying out 4. wind 5. Building motion Winding If spinning tension is grater than yarn strength in Ring frame, then end breakage is occurred and also due to roller lapping A. Technological causes B. Mechanical causes A. Technological causes 1. Insufficient twist in yarn 2. If travelers fly off. 3. Subbing through 4. Stretched roving 5. Faulty drafting roller setting 6.Faulty Traveler selection 7. Excessive yarn tension 8. Improper atmospheric conditions B. Mechanical Cau ses 1. Faulty drafting system 2. cadaverous out ring and traveler 3. Faulty gear and wheels 4. Worn out top rollers 5. Faulty apron 6. Spindle vibration 7. Eccentric ring Remedy Both the Technical and Mechanical causes should be taken into account and be careful while winding. Chapter Five Summary This chapter will discuss about some recommendations to conclude the study. According to the last objective of the study, it is needed to design a conclusion providing some recommendation to solve the problems identified.In former portion of the study, some problems are shown regarding the SCM activities of the ATM. Some recommendation are narrated in below- 5. 1 RECOMMENDATIONS I have found a fewer number of factors, which impede the achievement of ultimate goals of Alaudding Textile (pvt. ) Mills Limited. It is not easy to find out the solution by only three months internship. But it can be said that the suggestions mentioned below will obviously increase the efficiency of ATM Limited. 1. Shippers must ship the consignment of cotton within the stipulated date as mentioned in the Letter of credit.Delay in shipment shall be entertained without prior approval of the buyer for extension of shipment date. 2. Government should reduce value and tariff on Textile spares, Textile dyes, Chemical and sizing materials. 3. A committee be formed with members from various importing and exporting countries to review the existing rules and procedures and suggest reformulation of mew rules due to changes that are being taken place in World Trade. 4. Arbitration Board to be reconstituted with members from buyers and sellers country and one to be inducted on the recommendation of ICA. . Arbitration to be held in the country of buyer. 6. Compensation to be paid due to supply of inferior quality cotton should be fixed on the basis of nominal rate fixed by ICA from time to time. 7. Membership fees should be reduced to attract more individual members. 8. The Spinning sector offers lower interest rate on long term and working capital. 9. The compensation as well the benefit package will restrain the employees to leave their assignment and go for any employee movement for higher benefit packages. 0. The Sector should prosper in a situation of political stability and a congenial business environment. Political turmoil and the disturbance are bad for the economy and so also for us. So, Proper steps should be taken by the government to keep this sector free from politics. Finally, the bulge should be equipped with worlds modern and latest machinery andtechnology to cope with the pace in harmony with modern textile world. The Company should situate at a high land where less record of flood.The factory building should have strong RCC foundation, RCC floor, pre-fabricated steel structure to withstand wind, storm, rain etc. along with good drainage facility. 5. 2 Conclusion Sophisticated technology and high thought laboratories have been introduce in the production proces s, which brought new dimension in the purchasing, procuring, storing and maintaining supplies and inventories. The improved transportation and communication as well as competitors threat has made the issue more challenging and competitive. Thus, the usage and need for supply chain management are increasing dramatically.Further, global competitions require the companies continuous response to the customer with new products and replace those that become obsolescence, for these reason companies are combating to find new suppliers and building strong and long-term relationship with them. Hence, managers must have to very rational, logical and sensitive in designing and implementing proper supply chain management in order fight and compete against competitors and attaining organizational goals. Before selecting a supplier, a firm must decide whether it will use single sourcing or will have multiple suppliers from which to source the product.Single sourcing is used to guarantee the suppli er sufficient business when the supplier has to make a significant buyer-specific investment. Once suppliers have been select, contracts have to be structured between the buyer and each supplier. Supply chains can influence demand by using pricing and other forms of promotion. Marketing and sales often make the promotion and pricing decisions and they typically make them with the objective of maximizing tax. Pricing decisions based on revenue considerations often result in a decrease in overall profitability Chapter six annex References Krajewski and Ritzman, operations Management- strategy and analysis, 6th reading ? Sunil Chopra, and Peter Meindl, Supply Chain Management- strategy, planning and operation, 2nd Edition ? Khan amp jain(2004), Financial Management-text amp Problem,3rd edition, p. g 4. 1-4. 57 ? Prospectus of ATM, published on 18 September-2008. ? http//www. itwm. fraunhofer. de/zentral/download/berichte/bericht26. pdf. ? http//bgmea. com. bd/index. php? option=com _contentamptask=viewampid=12ampItemid=26 ? www. atmbd. com prospectus ? http//66. 102. 1. 104/scholar? hl=enamplr=ampq=cacheOKTGNo7eptwJunnayan. rg/Solidarity_Forum/Spinning_the_Chain_Lost_in_the_Queue. pdf+spinning+sector+of+Bangladesh Chapter Seven Bibliography 7. 1 Bibliography A research was conducted in Makson Spinning mills Ltd by Student of BRAC University in BangladeshProspectus of MSML, published on 18 September-2008 ByAbu Zafour Problems and Prospect of Garments Industry in Bangladesh (Part-7) Published 19 October 2009. By Kazi Anwarul Masud istudy of Bangladesh Economy- Problems amp Prospects with garments and textile industries- Part II on march 2010, the economic philosophy of textile industries in Bangladesh.Draft final report on the situation of Bangladesh silk Industry-By The dyeing and finishing. Graham Heaslip Strategy, Planning and Operation of textile Industries (School of Business and Humanities) 2007. Ning Cao, Zhiming Zhang, Chester To and Roger Ng Supply C hain Management Practice and Competitive Advantage in Textile and Apparel Industries (Institute of Textiles and Clothing, The Hong Kong polytechnic institute University) Pankage Chandra The Textile and Apparel Industry in Indian, in The Oxford Companion to Economics in India, 2007. Professor of Operations amp Technology Management)Manufacturing management Supply chain coordination Building technological capabilities Hi-tech entrepreneurship in his research. Prof. Atanu Ghosh Supply Chain for the Apparel Industry Some Tipswaspublished in RETAIL e-LETTER of the Retail Vision Group, Issue No. 21, 20th November 2003. Regarding textile industries SCM practices. Stanton, J, Willian, Michael J Etzel amp Bruce J Walker, Fundamentals of Marketing, McGrow Hill, intentional Book Company, London. Chapter 8 Appendices Questionnaire for the members participating in inbound activitiesDear Sir, I am a student of BBA program, Rajshahi University, is trade union movement an academic internship pr ogram on the topic -Supply chain management of ATM Pvt. Ltd. A critical analysis for this I need your sincerely co-operation in filling the following questionnaire, I assure that the information provided by you will be kept confidential anonymous and will be used for academic purpose only. transport give your agreement about flowing question carefully and give your answer. 1. What is the SCM system in this company? 2. What is the SCM managing policy? 3. What is the importance of IT in SCM in textile? . What is raw material used by ATM? Types of raw material? 5. Import of raw material. 6. How do you select suppliers and who are the suppliers? 7. Which are Banks involved in Import? 8. Process of raw material. 9. Is there any Safety management in production? If, yes, how? 10. Spare parts used in production 11. How is yarn constructed by this company? 12. Spinning system of this mill. 13. Weaving system of this mill. 14. Does Company maintain a good working environment? If yes why? 15 . Does the company well timed(p) pay salary? 16. Inter-communication system among the department of the company. 7. Are all the SCM members co-operating to each other? 18. All the SCM members are contributing in creating companies goodwill. 19. Supplier supply materials properly. 20. Is Storage capacity of the company enough? 21. Does Company maintain proper inventory management? 22. Does The Company train the SCM members in adapting new equipment? 23. Are you well-to-do about the companys performance? Questionnaire for customer Dear Sir, I am a student of BBA program, Rajshahi University, is undertaking an academic internship program on the topic -Supply chain management of ATM Pvt.Ltd. A critical analysis for this I need your sincerely co-operation in filling the following questionnaire, I assure that the information provided by you will be kept confidential anonymous and will be used for academic purpose only. (Please indicate your satisfaction level about companies activities . ) 1. How much contented about companies communication system? i) real dissatisfy ii) sanely dis quenched iii) Neither at rest nor disgruntled iv) jolly satisfied v) Very satisfied. 2. What is your opinion about price of the product? ) Very dissatisfied ii) Somewhat dissatisfied iii) Neither satisfied nor dissatisfied iv) Somewhat satisfied v) Very satisfied. 3. Satisfaction level about quality maintaining of the company. i) Very dissatisfied ii) Somewhat dissatisfied iii) Neither satisfied nor dissatisfied iv) Somewhat satisfied v) Very satisfied. 4. Satisfaction level of product delivery time. i) Very dissatisfied ii) Somewhat dissatisfied iii) Neither satisfied nor dissatisfied iv) Somewhat satisfied v) Very satisfied. 5. Providing transportation facilities of the company is? ) Very dissatisfied ii) Somewhat dissatisfied iii) Neither satisfied nor dissatisfied iv) Somewhat satisfied v) Very satisfied. 6. How much satisfied about compensation of defect product claim Mainta ining? i) Very dissatisfied ii) Somewhat dissatisfied iii) Neither satisfied nor dissatisfied iv) Somewhat satisfied v) Very satisfied. 7. Customer and company co-relationship level is? i) Very dissatisfied ii) Somewhat dissatisfied iii) Neither satisfied nor dissatisfied iv) Somewhat satisfied v) Very satisfied. 8.Supply of product in the market is? i) Very dissatisfied ii) Somewhat dissatisfied iii) Neither satisfied nor dissatisfied iv) Somewhat satisfied v) Very satisfied. 9. Satisfaction about the availability Product varieties in market? i) Very dissatisfied ii) Somewhat dissatisfied iii) Neither satisfied nor dissatisfied iv) Somewhat satisfied v) Very satisfied. 10. Satisfaction level regarding order receiving system. i) Very dissatisfied ii) Somewhat dissatisfied iii) neither satisfied nor dissatisfied iv) Somewhat satisfied v) Very satisfied