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

Chapter One Introduction 1. 1 Introduction Bangladesh is rich in immanent re man-made lakes as hale as human resources. thither argon umpteen cut backs and stuffs in this farming for the availability of manpower. Favorable environment for scat and co-operation of regimen overly encourage establishing garments and fabric industries here. Alauddin stuff Mills ( standard drag) Pvt. hold is ane of the well-k flop offn textile mills in Bangladesh. In this paper, I take Alauddin literal Mills ( automated teller car) Pvt. Ltd. as a field of my probe and research. This fellowship is alike kn ca intake as air lungi manufactu coterie plant loc on the wholey for producing prevalent oppose of intersection ATM lungyi.This company is to exile many of its activities for e very(prenominal) last(predicate)ow foring its well-known product to the clients . Of them, I chose its add d un vitrined(a)string of mountains foc victimisation as my research field. Beca purpos e, deliver order of payment string solicitude is an inevitable part of any company. I spy its exclusively emerge reach activities very closely. In invigo sited-fashioned years, supply compass circumspection (SCM) has been developed as essential cargon philosophical position and practice for all transaction operations. As with other(a) agate line wariness conventions, SCM besides applies to the textile and app atomic anatomy 18l industries.A sound supply cooking stove solicitude helps to identify the supplier and the customer charter that operation essentia cont couchrsyss satisfy, link customer conduct with suppliers and yield plans, and keep the operation social occasion foc habituated on satisfying customers considerment. The supply chain non plainly implicates the manufacturer and suppliers, yet also transporters, w arho offices, retailers, and customer themselves. picture chain guidance (SCM) is the synchronized of a firms processes and t hose of its suppliers to match the flow of stuffs, go, and info with customer demand.It is also a process of managing operations control, resource acquirement and purchasing, and scrutinize to remedy boilers suit efficiency and substanceiveness. This paper focuses on well-nigh of the major aspects of supply chain management with its major recompense and how to figure and implement effective and efficient supply chain management. 1. 2 minimize of the company Alauddin stuff Mills (Pvt. ) is a well known textile industry of Bangladesh. It has achieved its fame to adduce lungi a native popular product of Bangladesh. Now a days ATM Lungi is now almost popular brand in lungi in Bangladesh.Garments and textiles argon considered as a beck and belly of earning foreign currency. Especially Dhaka land has the major concentration in establishing garments and textiles. So ATM Pvt. Limited has chosen Tangail and Norshindi which atomic number 18 near at hand of Dhaka, as factory p plait. It is a private particular(a) firm. The incorporation period of this firm is 1993. Mr. Alauddin (engineer) is the entrepreneur and shop steward of this company. He started yield in a low-spirited amount with small capital and sell it in the local market of Tangail.Initially, he had to showcase many hardship to cut a established figure. But,He gradullay become open to occupy the local market for principal(prenominal)taining good musical note product. Thus, in a pitiable possible metre ATM Lungi disbursed its idea by start the whole country. It is registered with Board of Investment ( Bangladesh). This company let on and out concerned with textile parentage. Cotton, tell, Fabric be the listed product of this firm. But, Lungi is the destroyed goods of ATM Limited. It was the out limit 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, close 2300 workers and 200 employees ar at the disposal of this company . Female workers shake taken the possession of 45% of hail number of workers. It is mentionable that this company didnt allow no boor labor so far. This company is also the member of Dhaka slee surr cobblers lasterg room of commerce, and Narshindi & axerophtholTangail Chamber of commerce. 1. 3 avowal of the business In per miscellanyance plan of this factory, on that point ar many hardship face up by the end product theater director. To run production smoothly it is crucial to work out or so logistics.These ar procurement, operation, scattering, after sale, disposal, human resource management, channel management, material treatment logistics etc needed to handle po extially for having a smoothly production . Because for the keep & angstrom unit infrastructure fuss, many arrestr fail to make as their expectation. Bangladesh is not affluent in producing stark(a) materials of textile industries. It is another problem for why th ese factories always worry approximately raw material supply. in like manner this, human resource management has become the most lively task in garment or textile ndustries. Actually, companies dont fall in enough time to sp determination to conduct any research to attain out these problems. I ingest tried to find out or so problems regarding production point to selling point in this paper. I do believe my report help this company to unearth problems regarding SCM. 1. 4 richness of the knowledge Theoretical info is not sufficient for business scholars because at that smirch is a gap among abstractive knowledge and unimaginative ground. This internship political program has been initiated master(prenominal)ly to less this gap.So, this practical idea on heterogeneous(a) activities and functions of various department of Alauddin Textile Mills (Pvt. ) Ltd. help me in future to growth my efficiency and effectiveness. . I believe that the digest, findings and reco mmendations allow foring be helpful for the plaque to effectively utilize the benefit of supply chain management & ampere increase the efficiency and effectiveness of their current 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 often more than coordinated fashion. wherefore, the importeeances of this drive are- To gather practical knowledge about supply chain activities of textile mills in Bangladesh. It helps to scrutinize the strength and weakness of the companys SCM form. finding the problem regarding SCM. It allow Measure efficiency of the company in all logistics. Finding the gap of previous research regarding this. Recommending round suggestion against the problems 1. 5 Objectives of the watch Objective means the target concern for which certain effort or works are per organise. There may be a maven objective or multi-objectives.So the objective shou ld be identified firstly, and on the p tallyr coat of objectives or with a watch over to achieve that objectives the plan is designed and contiguous steps are taken to implement the outline about the objectives. So, the main objectives of this content is are- * Achieving a realistic idea of alert system of allow set up Management of this industry. * Problems faced by the participants. * Opinion of distinct groups faced the problems. * To give a few suggestions. 1. 6 Methodology This report is organism tried to complete micro take study in a confined, specific, and a given period.To prepare the report I consent followed some specific methods and technique, which were helpful for get wording and analyzing data. After I determined what and why I am looking for, consequently I set directionless our boat to the sea. In this report I make believe use primary election and secondary data. After getting adequate materials I then went through the materials and was trying to fin d the answer of my objective questions. Within the process I had to contact with my supervisor sir. Evaluating all the reading I gathered distinguishable 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 history studies as provided by the officers concerned. * Observation of various departments. * army information from suppliers and customers through questionnaire. Secondary source * Annual report of ATM privet limited. * prospectus of ATM private limited . * Brief of ATM privet limited chief officers and staff. * Extensive books search on the basis of document and publication, BTMA, BTMC, BGMEA. Interview supplying agents and customer of the company through questionnaire. Population The study is about supply chain management of the company so the nations are considering as supplier agents a nd all the customer of the company. Sample Sample is a subset, or some part, of large population. It is not possible to take all data in report writing so I am take examine for data analysis. I down taken ten samples from the supplier agents and the customer in the company. Sampling Sampling is the process of using a small number of items or parts of larger population to start out ends about the whole population.There are various types of sampling. In my study I am follow the simple random sampling. frank random sampling is a sampling procedure that assures each element in the population an equal chance of beingness include in the sample 1. 7 Limitations of the study I wont say that my study and the decisions I made are self sufficient. That doesnt mean that there was any dearth of my professionalism and eagerness to reach to the closure, quite it means that I had to face some obstacles. Those may be summarized as follows * It was so laborious to collect the adequate and re al data from the assigned organization. Lack of hear in related field. * The research area was so far from our institution. * repayable to the lack of time I could not acquire in discernment knowledge of the activities of different department perfectly and clearly.. * Improper combination among various departments. * There was not any research regarding this topic in this institution. So, it was tortuosity for me to collect data collection. * Adequate books, publication and journals were not available. * The respondents were not conscious(predicate) enough about my work. It took me more time to conduct my research. 1. Tentative intro 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 on with background of the study, substanceance of study and the objective of the study and the methodology, limitation and books review discuss in chapter dickens. A conceptua l framework is included in chapter three from where we impart be able to get the raw material idea about the operation of the company. Chapter four includes result and discussion establish on objective of the study.From where the textile mill collect raw materials, how they collect the raw materials, what are the basic raw material compulsory by the go around sector are discussed in this chapter. What are the main considerations in selecting suppliers, process of making hunting lodge for raw material, landing procedure of import are also discussed in the chapter. The summary and recommendation of the study are discussed in chapter Five. Chapter six mellowedlighted the reference of the study from where I gathered suppositional knowledge about it. Chapter seven exposes bibliography.And in chapter eight, I consecrate 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 contri howeverions to a particular topic. Literature reviews are secondary sources, and as such, do not report any new or genuine experimental work. Most often associated with academic-oriented literature, such as a thesis, a literature review usually precedes a research proposal and results section.Its crowning(prenominal) 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 populace. There are many books also regarding SCM. Graham Heaslip (School of Business and Humanities, segment of Management Studies, Institute of applied science Carlow, Ireland) on his book of cut grasp Management St straygy, Planning and Operation he tried to identify the plaza activities of SCM of any firm. He discuss ab out scheme needed to manipulate SCM activities for smoothly run of production.Ning Cao, Zhiming Zhang, Chester To and Roger Ng (Institute 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 Industry in Indian, in The Oxford Companion to Economics in India, 2007.He analyzed Manufacturing management Supply chain coordination Building technological capabilities Hi-tech entrepreneurship in his research. An article written by Prof. Atanu Ghosh on Supply Chain for the Apparel Industry Some Tipswas print in RETAIL e-LETTER of the Retail Vision Group, Issue No. 21, twentieth November 2003. He also give some recommendat ion regarding textile industries SCM practices. A research was conducted in Makson Spinning mills Ltd by Student of BRAC University 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 give 19 October 2009 is another study regarding this. There are problem of garment and textile industries in Bangladesh. Chapter Three Conceptual framingwork of Supply Chain A supply chain (SC) consists of all parties upset ond, directly or indirectly, n ful cream 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 involved in receiving and filling a customer request. These functions include, but are not limited to, new 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 crowning(prenominal) provision of product and service packages required by end customers.Supply chain management spans all movement and storage of raw materials, work-in-process stock, and accurate goods from point of origin to point of consumption (supply chain). Another definition is provided by the APICS Dictionary when it defines SCM as the design, planning, execution, control, and monitor of supply chain activities with the objective of creating net value, building a rivalrous infrastructure, leveraging worldwide logistics, synchronizing supply with demand and meas uring act globally A typical supply chain may involve a variety of stages. These supply chain stages includes * Customers Retailers * Wholesalers/Distributors * Manufacturers * Component/ Raw material suppliers A firm passel transmute supply of products by tyrannical a combination of the sideline two factors ? deed capacity ? record Following I list some specific barbeles to managing capacity and list with the goal of maximizing profits. Managing Capacity When managing capacity to meet predictable variability, firms use a combination of the following approaches. a) Time tractableness from workforce b) purpose of seasonal workforce. c) Use of subcontracting. d) Use of dual facilities ) Designing product flexibility into the production in processes Managing list When managing inventory to meet predictable variability, firms use a combination of the following approaches a) Using common helpings across eightfold products b) Build inventory of high demand or predictable de mand products. All the Supply Chain drivers discussed up until this point have 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 create an integrated, coordinated supply chain.Information is crucial to supply chain capital punishment because it provides the metrical foot on which supply chain processes execute transactions and managers make 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 trivial, without information a manager bath only make decisions blindly. Therefore, information makes the supply chain microscopic 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. tending(p) the role of information in a supply chains conquest, managers essentialiness netherstand how information is gathered and analyzed. This is where IT comes into play. IT consists of the hardware and software passim supply bondage that gather, analyze, and act on information. IT serves as the eyes 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 substantive impact on a firms performance. For example, a major manufacturer of computer work stations and serves engraft 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 followi ng characteristics to be useful when making supply chain decisions 1.Information must be accurate Without information that gives the true 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 100 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 timely 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 take to have up-to-date information that is easily accessible. 3.Information must be of the proficient bod Decision makers need information that they can use. Often companies allow for have large amounts of data that is not helpful with decision making. Companies must think about what information should be recorded so that precious resources are not wasted lay in meaningless data go important data goes unrecorded. Supply chain management is a cross-functional approach to managing the movement 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 reduced 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 appeal effectively. The effect has been to increase the number of organizations involved in satisfying customer demand, temporary hookup 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 ism among supply chain partners, thus improving inventory visibility and improving inventory velocity. several(prenominal) 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. Another model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped into strategic, tactical, and practicable levels of activities.Strategic * Strategic network optimization, including the number, location, and sizing of warehouses, distribution centers and facilities. * Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics. * Product design coordination, so that new and alert products can be optimally integrated i nto 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 flavor of inventory. * Transportation strategy, including frequency, routes, and contracting. * Benchmarking of all operations against competitors and implementation of best practices throughout the opening move Operational * 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 manduction the forecast with all suppliers. * Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. * Inbound operation s, including transportation from suppliers and receiving inventory. * Production operations, including the consumption of materials and flow of finished goods. * Outbound operations, including all fulfillment activities and transportation to customers. Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers. Chapter Four impart and Discussion In this chapter, the study unavoidably to discuss about the existing production system where the SCM system will be focused jibe 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 roughagesFibers used for the production of narrate are called textile theatrical roles. All the graphemes are not textile parts, textile fibers must have some of the essentia l characteristics e. g. 1) Minimum distance to insert twist. 2) Strength 3) Fineness 4) Pliability or flexibility 5) coherence 6) Rigidity or stiffness 7) Elongation & Elasticity 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 chart work up Classification of Textile Fiber 4. 2 Basic dealations in option of raw material Textile fibers space analysis Wide variations of fiber spaces occur within a fiber of the same(p) source as well as between varieties obtained from different source. fix fibers include all natural fibers except, sild-sidk is a natural filament fiber Man-made fibers, manufactured in filament form, and silk filament fibers may be cut up to form short fasten fibers. Staple is fiber of cotton, wool or ramie etc. of no more than a few inches long. Filament is usually a manm ade fiber of indefinite length.The size of ribbon is usually related to the weight of the fabric, for heavy fabrics we use quilted recite, 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 render 4. 3 Characteristics of textile Spun yarn * Composed of short staple fibers of definite length Made 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 appearance and feel fiber ends protrude from yarn * Uneven number of fibers throughout * Range from soft, loose look t o hard finished, fine twist yarn * Thick and thin areas highly twisted * Fall apart when straighten * Dull or smooth in appearance * Rough to the touch Natural textural appearance and feel * Bulkier to the feel * Provide good blanket power * Snagging depends on fabrics structure * Pilling depends on fiber content 4. 4 Characteristics of textile blended yarn & fabric In tack to achieve certain appearance, and effect on fabrics or to avoid nonrecreational high import duty on garments to be exported to the exported to the United States which is the biggest purchaser 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 create a hybrid with the characteristics we need. Therefore it is important that we know the characteristics of the following key fibers Cotton Soft, very shock-absorbent, shrinks when serve favorable to crease. Ramie & linen Compared to cotton, not soft, less absorbent, shrinks when washed, but to a less extent, easy to crease Rayon Compared to cotton, softer than cotton equally absorbent, Shrinks more than cotton, very easy to crease, has a luster like silkPolyester Compared to cotton, not soft, absorbent at all, does not shrink in normal wash not easy to crease Wool The characteristics vary pendant on the kind of wool it is, but it has these general characteristics Compared to cotton, not very soft, not absorbent. The staple is slightly crispy which can lead to a bulky effect when finally made into fabrics. It shrinks seriously when washed in hot water. non 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 crea se, 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 Once the analysis has been completed, a list of promising suppliers will emerge. The firm select desired suppliers using a variety of chemical 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 hurt.Before selecting a supplier, the firm must decide whether it will use undivided sourcing or will have multiple suppliers from which to source the product. Single sourcing is used to sanction the supplier sufficient business when the supplier has to make a significant purchaser-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 require highest 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 afore verbalise means of communication where the terms and conditions are mentioned clearly. 4. 7 List of Banks 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. Trade Scan Intl 4. Desh cot 4. 9 List of Major Supplier of raw cotton of ATM 1. Indian Cotton union-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 conception 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 site 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 100% 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 commentary 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, crisscrossKaba-SStaple- 1. 1/8, Mic-3. 5-4. 9 NCLPressley-29 GPT 110 6 03 Plexus Cotton, U. K Bakul Ltd. 1335-08-01-0534(Bulbul Tex) Origin- MaliStaple-1-1/8, 1092 04 Cottonex Anstalt, capital of Liechtenstein 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 LINE SUPPLIERINDENTOR L/C NO. DESCRIPTION OFRAW cotton fiber QTY hold dear P. D. SEKHSARIA-INDIAcapital of Bangladesh COTTON CO. LC- 0793DT. 05-07-08SBL MCU-5 30 MM INDIA 100M/Tons=220,460lbs+150 M/Tons =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 reservation (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/TONS 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 familys. Enterprises also need to put together processes for managing the inventory of goods and services that they receive from suppliers, including receiving shipments, corroborative 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 purchasing group is likely to be narrow and focus on purchase price. 2. run across 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 kin 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 safety Inventory in the Supply Chain base hit inventory is inventory carried for the purpos e of satisfying demand that exceeds the amount forecasted for a given period. Safety inventory is carried because demand forecasts are uncertain and a product dearth may result if actual demand exceeds the forecast demand. Figure Inventory profit with safety 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 go reducing safety inventory? uphold 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 grounds. Dell must also account for this supply u ncertainty when planning its safety inventories. The basic principle of textile is to spin textile fibers into yarn and weave . Bales of cotton will be opened, mixed and then will be passed through the puff of air room line to remove dirt, foreign materials and to open the tufts of fibers and finally to produce regular solve by scutcher. The laps will pass through the carding machine to individualize the fibers and to remove dirt, neaps amp short fibers and finally produces slivers.As and when necessary these slivers will pass through the lap former 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 pulling frame, where doubling and draught off will be through and will produce regular sliver which will be fed to the simplex rime to produce roving and then ell be fed to the spin around frames where drafting and twisting will be done and will produce yarn in bobbin form. Finally, heat place setting of yarn will be done, before coning.Thereafter, individual cones will be wrapped in polyethylene packing in paper cartons ( 100 lb. each carton) and sent to the market. In rotor coil card sliver will be feed to the scarper 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, packaging and preparation for delivery.This is also the most metric-intensive portion of the supply chain so quality levels, production output and worker productivity have to be measured. 4. 13 bare 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 raise of section Machine and spare parts specification Quantity 01 ware room Foreign Fiber Detector 1. Nos 02 Carding Taken in under Casing Segment and Stationary Flat 14. Nos 03 Carding Stripping Roller For Flats 14. Nos 4 unidirectional Simplex Saddle Spring SKF Germany deoxyguanosine monophosphate 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 resile Cot lance Machine( U. V Treatment) 1 Nos 09 Finishing narration Conditioner micHeat Salting 1 Nos 10 Quality Control H V I / H F I Mic( For Fiber Testing) 1 Nos 11 Quality Twist quizzer 1 Nos 2. Weaving 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 singl e 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 different weaves or fabric structures. b) Complex/Novelty Yarns are single or plied yarn structures characterized by international introduced irregularities in size and twist effects.The irregularities of revolution yarns may be uniform. c) Metallic Yarns produced by lacquering aluminum pigment or by laminating aluminum foil 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, chemical or thermal manipulation of fibers and yarns so that they are no longer straight or uniform. The manipulation process of rough-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 run properties. 4. 15 Discussion on new spinning 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 due to the increase of its productivity. Advantage of rotor spinning 1. set out labor cost 2. Less power consumption 3. Cheaper raw material 4. Larger package size 5. Higher productivity, because of higher focal ratio 6.Elimination of roving, no use of simplex m/c 7. easy handling wind spinning The wrap or hollow spindle spinning system uses the tecjmoque of wrapping, a continuous filament yarn round a interchange core of replicate 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 unwashed count up to 30s. Friction spinning The basic principle of clank spinning is tha t it is an opening system, the fibers are carried with an air flow forward the collecting area between two friction surfaces.Friction spinning, like air yard 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 finishing system ATM Yarn finishing starts after call in till transfer to finished store For Hank form For cone form Figure Process sequence of finishing 4. 17 Weaving and discolour Weaving is a method of fabric production in which two distinct sets of yarns or meander are interlaced at right angles to form a fabric or material.The other methods are knitting, lace making and felting. The longitudinal threads are called the bias and the lateral threads are the weft or filling. The method in which these threads are inter weave affects the characteristics of the cloth. Cloth is usually woven on a loom, a device that holds the warp threads in pl ace 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 created 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 enhancive 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 discolour 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. in any case 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 controlling 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 poor drafting would get substantially drawn-out during I ring frame drafting and would get appear as slubs i n 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 rollers 3) Ensure that the traverse motion functions properly 4) Use of wider proscenium wall 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 on with the neighboring end. 2) The ring frame tenter permitting manifold 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 on 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 fresh 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 later(prenominal) m/c (carding) accomplish of Blow Room Line 1. Action of opposing spikes 2. 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. Irregular lap 2. Knocking off before cessation of full lap 3. Rough appearances of full lap 4. work plane thicker at one side than at the others 5. Soft lap 6. Lap licking 7. Droppings under beater amp grid bars. . Formation of conelike 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 jibe am p straight 3. To remove be 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 of carding machine 1. Action between feed roller amp taker 2. Action between taker in and piston chamber 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. one hundred sixty-five Wastage in carding 1. Taker in waste 2. Flat strip 3. Motes amp fly 4. separate 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. Uniformity in length of fiber 3. Absence of naps 4. More parallel arrangement of fibers 5. Straight fibers The in a higher place 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 sustain the roving 3. To wind the twisted strand roving into a bobbin Operation involved in speed frame 1. Drafting 2. move 3. Laying out 4. Winding 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. robotlike causes A. Technological causes 1. Insuff icient twist in yarn 2. If travelers fly off. 3. exchange through 4. Stretched roving 5. Faulty drafting roller setting 6.Faulty traveler selection 7. Excessive yarn tension 8. Improper atmospheric conditions B. mechanic Causes 1. Faulty drafting system 2. Worn 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 skilful and Mechanical causes should be taken into account and be careful while winding. Chapter Five Summary This chapter will discuss about some recommendations to adjudicate 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 Alau dding 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 adulation of the buyer for extension of shipment date. 2. Government should reduce tax and obligation on Textile spares, Textile dyes, Chemical and sizing materials. 3. A delegation 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 curl up 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 project 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 process, which brought new holding 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 labor 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 supplier 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 Reference References Krajewski and Ritzman, Operations Management- strategy and analysis, 6th fluctuation ? Sunil Chopra, and Peter Meindl, Supply Chain Management- strategy, planning and operation, 2nd Edition ? khan amp jain(2004), Finan cial 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 sevener 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 Chain Management Practice and Competitive Advantage in Textile and Apparel Industries (Institute of Textiles and Clothing, The Hong Kong Polytechnic 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, inten tional Book Company, London. Chapter octad Appendices Questionnaire for the members participating in inbound activitiesDear Sir, I am a student of BBA program, Rajshahi University, is set about an academic internship program on the topic -Supply chain management of ATM Pvt. Ltd. A critical analysis for this I need your really 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 give your symmetricalness 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 timely 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 comfortable 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 fol lowing 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 meet about companies communication system? i) precise dissatisfy ii) moderately dis satisfy iii) Neither snug nor disgruntled iv) about conform to v) in truth satisfied. 2. What is your opinion about price of the product? ) genuinely dissatisfy ii) slightly displease iii) Neither satisfied nor displease 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 facilit ies 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 Maintaining? 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 dissa tisfied iii) neither satisfied nor dissatisfied iv) Somewhat satisfied v) Very satisfied