OPERATIONS STRATEGY OF

K.A.C Fashion Wear Ltd.

PREPARED BY:

1. Rushdia Ali Khan ID# 101 0314 530

2. Faisal Zaman 3. Zannatul Ferrous Ariba 4. Syed Muhammad Nahiyan 5. Shadman Habib Talukder 6. Syeda Sabera Arefin

ID# 091 0611 030 ID# 091 0209 030 ID # 091 0319 030 ID # 092 0080 030 ID# 091 0169 030

Introduction
Brief Company Overview: The K.A.C. Fashion Wear Ltd. Company is essentially a manufacturer of branded clothes. Their main product is T-shirt. The company was founded by Mr. K. Alam Chowdhury and it is still running by Him.

Location
Main industry is situated in Savar, because in Savar they are getting Cheap labor cost Transport Water GAS Electricity Other facilities

Products
T-shirts Polo T-shirts Trousers Shorts Tan tops & Full over Seasonal Product: Jackets, Trousers

Resources
K.A.C. Fashion buy their resources from : Bangladesh India China

Approximately, 3000 workers are working in this company.

Production Method
The K.A.C. Fashion Wear Ltd. applies the concepts of Mass production in their operations. Some obvious features of mass production have been found in their production: a) High volumes of standardized goods. b) Main focus on quality c) Low skilled workers use Specialized machinery d) Absence of variability

Production Process and Layout

A Batch processing system is used to make the clothes. There are some steps which is strictly followed by the workers. Knitting Yarns for fabric Sewing threads Dice and Chemicals Labels Buttons and Zips Poly bags Cartoon Gum tapes

CUTTING AND DYEING PROCESS:

The fabric is first cut into uniform plies and then spread manually in preparation for the cutting process. Next, garment formsor patterns (dyeing process)are laid out on top of the spread, in a manually cutting system.

Lastly, the fabric is cut to the shape of the garment forms using manually operated cutting equipment.

Sewing Process

Sewing Process:
Sewing machine operators receive the bundle of cut fabric for the raw material preparation section, and repeatedly sew the same portion of the garment, passing that completed portion to the next operator. For example, the first operator sews the collar to the body of the garment and the next operator sew a sleeve to the body. Quality assurance is performed at the end of the sewing line to ensure that the garment has been properly assembled and that no manufacturing defects exist.

Capacity Planning
This is very important to maintain the cash flow and making a reasonable profit. Too few or too many orders, or even the right number of orders but, lack of employees will hurt the profits.

Scheduling for machines routine maintenance. Time scheduling of employees and resource handlers.

Responsibilities of operations Managers

Planning
Capacity Locations Products and services Make or buy Layout Projects scheduling

Organizing
Degree of centralization Process selection

Staffing
Hiring/laying off Use of overtime

Directing
Incentive plans Issuance of work orders Job assignments

Controlling
Inventory Quality Costs productivity

Assuring Quality
K.A.C. Fashion Wear Ltd. Produce quality based products. They provide their customers all kinds of quality assurance. In case of any defective bundles, they always try to replace it. Spots are often marked with a sticker and taken to a spot-cleaning area where the garment is cleaned using steam, hot water, or chemical stain removers. Some customers request that a garment be fully laundered after it is sewn and assembled; therefore, KAC have an on-site laundry operations.

Monthly Productivity

Multifactor productivity in 2010 = Output / ( Labour + Machine + Overhead ) = 10,00,000 / [ (1000000.3) + ( 10,00,000.2) + (10,00,000 .1)] = 1.66 units/dollar input.

Factors affecting Productivity

Need for technological improvement. Increasing Scrap rates. Dearth of workers serving the company for a long period of time. Labour turnover: 08%
Voluntary turnover: 06.5%

Opting a Forecasting Technique

Cost: that may
occur for the future operations for KAC fashion wear Limited.

Availability of data: If
data is not available then it becomes difficult for KAC fashion wear Limited to carry out the required forecasting calculations.

Accuracy: It is
important for effective implementation of the forecasting figures.

Time: Stipulated
time that is provided for carrying out the forecasting process.

Judgmental Approach

Forecasting Technique of K.A.C Fashion Wear Limited

The forecasting process

First the company selects the purpose of the forecast.

Obtain, clean and analyze appropriate data.

The Operation manager of the company then selects a time horizon.

Carry out the forecast.

Finally monitor the entire forecasting process.

Judgmental forecasts
Executive opinions
Sales force opinions

Consumer Surveys

JUDGMENTAL FORECAST

Summarizing Forecasting Accuracy

Chart Title
FY 2009 18 14.5 FY 2010 16.5 14.2

Annual Sales

Forecasted Sales

Figures of FY 2010: Annual Sales: $18 million. Forecasted Sales: $16.5 million. Figures of FY 2009: Annual Sales: $14.5 million. Forecasted Sales: $14.2 million.

Mean Absolute Deviation

MAD = | Actualt - Forecastt | / n
According to the figures mentioned,

Sum of error: (18-16.5)+(14.5-14.2) = 1.8

MAD = 1.8/2 = 0.9 (Ans.)

Mean Squared Error

MSE= ( Actualt Forecastt )2/ (n-1)
According to the figures mentioned,

Sum of error2: (18-16.5) + (14.5-14.2) = 1.82 = 3.24 MSE = 3.24/(2-1) = 3.24 (Ans.)

Mean Absolute Percentage Error

MAPE = {(Actualt- Forecastt) /Actual} 100 / n
According to the figures mentioned, Sum of error: (18-16.5) + (14.5-14.2) = 1.8 Actual: 0.08333+ MAPE = {(1.5/18) 100} + (0.3/14.2) 100} = 8.33% + 2.06% = 0.39% / 2 = 5.18% (Ans.)

Control
The forecasts are made semi-annually. After tracking the error corrective measures are taken immediately by the management of K.A.C fashion wear Limited. A re-examination of forecasting is carried out in case of gross deviations between the forecasted and actual figures. A control chart is used in order to locate the errors immediately.

PRODUCT DESIGN:
Phases used by the K.A.C. Fashion Wear Ltd. For product development: Process Specification. Prototype Development. Design review.

Issues in Product Design:

Life Cycle- introduction, growth, maturity and decline. Currently the life cycle of garments industry is in growth stage.

Issues in Product Design:

Standardization the extent absence of product variation. K.A.C Fashion Wear Ltd. follows MASS CUSTOMIZATION.

Issues in Product Design(Cont):

Robust Design - design that results in products that can function over a broad range of conditions. K.A.C Fashion Wear Ltd. produces clothes that are applicable everywhere.

Issues in Product Design:

Product Liability a manufacturer is liable for any injuries or damages cause by a faulty product. K.A.C Fashion Wear Ltd. is liable for their products.

Rearrangement of work place:

Result in a greater efficiency

Can Similar activities be grouped?

Use of additional or improved equipment

Improvement Ideas among the workers

Emotions toward work

In terms of team?

Short term team Self Directed team

Workers Motivation Factors

Appraisal Compensation Ideal Work environment Socialization Status

Specialization for Production

Design Work for K. A. C Fashion LTD

Idea Sketching Skill & Tool Creativity Customers Angle

Methods Analysis
Flow Process Chart Worker-Machine Chart

Motion Study

K. A. C. Fashion LTD follows the Motion Study Principles

Use Of Human Body Arrangement & Conditions of the Workplace Design of Tools & Equipments

Working Conditions
Temperature & Humidity Ventilation Noise & Vibrations Work Breaks Safety Ethical Issues

Work Measurement

Standard Time Stopwatch Time Study

Work Sampling

Compensation
Time-Based System Output-Based System Knowledge-Based Pay System

Competitive Advantage:
Lower Cost Lower price Our Location Our Extra Service Exceptional Design Fabrics Quality

In all phases of operations. They use scientific management system and for that reason employees get one hour break after working for four hours. Basically in one hour, a single worker can prepare 10 t-shirts. When a worker becomes experienced in his field, the productivity rate increase. For extra pieces in one hour basis, they provide their customers rewards and 10% bonus for each extra piece.

Our Extra facilities To Customers:

Customers are able to order any special design to the companys designers which they like. The company deliver the order to them within very short time. This is the service which is not available to their market competitors.

The company give discounts on special festivals

to their regular customers.

Monitoring
Closely monitoring quality and customer satisfaction. Agility or Reacting very quickly to correcting any problems. Monitoring monthly sales and monthly expenses.

Capacity Planning
Capacity : The upper limit or ceiling on the load that an operating unit can handle. 2 useful definitions of capacity. Design capacity: The maximum output rate or service capacity an operation, process, or facility is designed for. # K.A.C. fashion currently produces 40,000 units per day. ( Design capacity) Effective capacity : Design capacity minus allowances such as personal time, maintenance and scrap. # K.A.C. fashions effective capacity= 39,000 units per day

Capacity planning
K.A.C. fashion needs more machinery to increase its output rate or capacity. There are already 30 machines in K.A.C. More 50 machines are needed to increase its output rate in maximum level.

Machines are needed as soon as possible for the greater profit of K.A.C. fashion.

Facilities
The location of K.A.C. fashion house is nice. It is located at SAVAR. Its very near of the market. So that transportation cost is not very high. Labor supply is available in a very cheap rate. Environmental factors such as heating, lighting and ventilation are good enough for workers to perform effectively.

Product & Service factors

Product or service design can have a tremendous influence on capacity. K.A.C. fashions items are not similar. There are varieties of items.

K.A.C. fashion follows basically Mass customization process.

Human factors
Training & experience : To perform the job Training, skill & experience are required. K.A.C. fashion trains their workers to improve their skill. Motivation : Employee motivation has a very basic relationship to capacity, as do absenteeism & turnover. Compensation : The compensation of workers are the keys for K.A.C. for motivating their workers to perform well.

SWOT ANALYSIS
Strengths Raw materials are available locally

Infrastructure is available Location (near to the market) Excess install capacity Cheap Labor

SWOT ANALYSIS
Weaknesses

Four times less productivity by use of local made old technology

Non conformity of standard Semi skilled labor No technical training institute for Ginning Industry High rate of contamination Lack of online market facility to access international buyers

SWOT ANALYSIS
Opportunities Introduction of latest modern ginning technology being used in developed countries Export of cotton to other countries

Possibilities to achieve premium for best quality that government h Access to international markets through online market Ginning Training Institute

SWOT ANALYSIS
Threats:

Government regulations (lot of taxes on the industry)

Fluctuation in international market price Global Competition Pest diseases on cotton crop result in low production of cotton lint Import of cotton

Recommendations
Introduction of state-of the art technology to enhance productivity. Renovated pay scale for workers in order to decrease worker turnover ratio. Usage of forecasting technique taking into account the need of the hour. Revamped product design: should also follow Delayed Differentiation process.

Conclusion
We think K.A.C. fashion is on the right track . But If they follow our suggestions regarding operations management whatever we discussed here, they are going to maximize their profit in near future for sure.