Cost Pc For Piece Rate Workers example essay topic

GN's trip to US GN informed the EMC about his trip to US and his meetings with various buyers viz. Greg Norman, NFL, Kohls, etc. He appraised that lot of business can be done with Kohls, especially in boxers. Also he felt that there is a big opportunity in terms of stock sales of both knitted T-shirts and boxers in Canada. He proposed that a small office be opened in Canada. It was agreed that company shall try to reduce its dependency on any one customer.

GN informed the EMC that going forward, the buyers may depend largely on domestic suppliers in their country as their deliverables are guaranteed, the turnover is quicker and they give money back guarantee on the goods, which remain unsold. Therefore it was felt necessary that there is an intense need to travel more, to be with customers, so as to have direct interaction with the buyers. GN mooted an idea to have some base in the US by appointing a Resident Representative. However, no decision was taken. GN expressed his views on future of India in the garment business in post quota scenario. He informed that the buyers are bullish about India and there have been protests in U.S. against major imports from China and it is surmised that China will have quota for some more time.

However, there is going to be a downward pressure on the prices, which may be upto 30% compared to present levels. Mr. T.P.S. Bhatia, Knits Supply Chain Wastage & Leftover report: 1. Details in value terms for was tages should be given. 2. Avoidable waste / unavoidable waste in terms of amount should be mentioned. 3.

The possibility of buying fabric instead of yarn for knitwear was discussed on the suggestion by RJ as he felt that the fabric manufacturer will have much more expertise than us. 4. AS was asked to cut the fabrics to exhaust upto 7%. He was also required to establish a system to ensure this.

On time delivery status for fabric and fabric trims 1. Mr. T.P.S. Bhatia presented the summary of OTD status for fabric for the period March 03 - July 03. In July, the OTD status was 92.13% based on Tx - 30 benchmark. RD to check from production that this quantum of fabric was OK and in RFC condition. 2. The report showed that there was left over fabric of 968 kgs. against a total procurement of 44,253 kgs.

Mr. Bhatia to inform GN on 21.07. 03 that out of this reject fabric how much was debited to the concerned party. 3. GN to take up the issue of conversion of left over fabric in excess of 250 kgs. per combo into garments upto 45% of the original FOB values to the existing clients. Acceptable Quality Report 1. The report stated that 97% of the deliveries during the period March 03 - July 03 were OK and no mending was required.

This % reported is based on quality check made in fabric store by Mr. Rana. However, it was felt that the mending defects were much more than stated and it comes into light only at the stages of cutting, sewing and finishing. It was agreed that much more deliberation needs to be done among GN, Bhatia, AS to avoid such occurrence (s) as considerable time is lost in this repeated checking. Mr. Adars h Sharan, Knits Production 1. AS to change the format for production accounting so as to reflect separately, orders which are in quantum less than 5000 and more than 5000 to give a better idea of cut to ship ratio. Also a benchmark is established.

For all orders more than 5000 pcs., the cut to ship ration should be at least 99% and for all orders less than 5000 pcs. the ratio should be at least 98% 2. AS to give a break up of fixed costs and variable costs in the data for cost / pc. in cutting. 3. AS to find out the reasons for difference in piece rate in sewing among first floor and second floor as the average sewing cost / pc. for piece rate workers was Rs. 17.87 while for second floor it came to Rs. 23.57 (Rs.

23.57 is the cost in June 03 where as difficult production was handled in April and May 03) 4. Anshumaan had handled production of 600 pcs. of stock garments with Woven tailors. The sewing cost per piece at 60% of standard efficiency was calculated at Rs. 10.80 per pc. which is way less than the per piece cost of Rs.

13.40 in case of salaried workers on the first floor. Assuming this cost of Rs. 10.80 per pc. to be correct, it was estimated that the ideal cost per pc. can be pegged down to Rs. 6/- per piece @ 90% efficiency.

Anshumaan to make actual comparison of bases involved in calculating the costs for salaried workers i.e. between Rs. 13.40 & Rs. 10.80. 5. Anshumaan has been entrusted to set up an ideal end-of-line (EOL) manufacturing facility with multi-skilled personnel for sewing and finishing out of the existing woven team where the target cost should be Rs. 10/- per piece.

AS to give him all necessary guidance and provide Anshumaan all needed facility for this. The target for the line to be set up is Saturday, 26th July 2003.6. AS to find out actual CM from other manufacturers in the area as well as South India, Ludhiana and Delhi. 7. AS informed that whenever there is a change in the QC appointed by the Buyer the quality problems come up and frequency of shipment opening increases. Presently there is no proper QA Dept.

AS to put up a plan for QA Dept. by Wednesday 23rd July 2003.8. AS to look into reduction of per pc. cost for finishing. 9. The Committee discussed the possibility of elimination of total pc. rate system. For this it was felt that our karigars should be trained for multi-product skilling, which even will include woven karigars working in the knitwear unit. 10.

Discussions were made on the possibility of shipping 5% extra, in addition to the order. The knitwear production had decided not to ship 5% extra due to unavailability of adequate quota as actual orders are to be shipped in full. 11. AS to inform GN the extra quota that will be needed to ship 5% extra from the orders to be executed in July & August 03. Also GN OKayed shipping quota of 5000 pcs. for 5% extra basket. Mr. Anshumaan Bhaskar, Wovens Production 1.

AB presented the various data for OTD, production accounting, cost tracking etc. Since the production in the wovens was only to the tune of 39,000 pcs. (approx.) the data was not a true representative. 2. AB explained the training module for the workers. GN felt that more time "on site" needs to be spent and discuss this in greater detail.

AB to specify how many types of maximum operations one person should be trained in. RJ suggested that the Directors and Sr. Managers to visit the training center frequently. 3. Anshumaan to find out the details of dead fabric left in the woven stores in order to convert the same into boxers and offer it to our clients at 75 cents per pc. This is to be reported to GN by Monday 21st July 03. Mr. Vinod Mahindra, Accounts 1.

Various key figures on accounts and finance were presented. GN instructed that we should talk to various suppliers for all purchases to avail CD. Mr. Bhatia to initiate the process. 2. The data for direct labour payment to show department-wise cost in future. 3.

A new format to be designed for presentation of data by Accounts in consultation with GN.