Chapter 1Company profile

PREPARED BY SAMUEL G/HERID NO 0502283

Internship report Oct. 2016

BACK GROUND OF ALMEDA TEXTILS PLC.

Is a private company established with a share capital of 180,000,000 Birr in1989.

The factory is located 7 km from the centre of Adwa town on the main road to Axum.

The town of Adwa is located at a distance of 1006kms and 233kms from Addis Ababa and

Mekelle

The factory is directly linked to the main port of Djibouti for Import /Export incident

OBJECTIVE

To produce threads yarns and cloths from various fibers

To produce clothing materials for personnel and house hold uses.

To engage in any other trade necessary to the achievement of its

business.

To engage in agricultural activities where becomes necessary for its

Business.

MISSION To make profit by competing in the global market. To generate foreign exchange by increasing export. To create employment opportunities to the community. To have sustainable production capacity

VISSION

Develop Almeda as a reference for Ethiopian Textile and Garmenting

industry

Create the conditioned that ALTEX can become leader in the

Ethiopian market in terms of export and local market sale

Garment manufacturing process

COMPANYS MAIN CUSTOMER

Local customer Foreign customer

Brand  Location Brand Location

Defence of

ministry

Ethiopia Condor ITALY

Regional police “ Bem apparel USA

Federal police “ Edwards USA

Royal foam “ Tsi USA

Guna plc. “ Kopperman GERMANY

Adama garment “ Vitcon plc SUDAN

Victon “ champro USA

COMPANY MAIN PRODUCTE

NEW PRODUCT DEVELOPMENT USING KNITTING FABRIC WASTAGE

BACK GROUD

As fabric cost comprises to 70% of the final production cost, the consumption of fabric is

critical to profitability.

The major are where wastes are highly observed or created is in cutting department those are

Marker loss and

Spreading losses

For better costing of garment, and cost reduction, it is necessary to have understanding of

Fabric utilization and,

various fabric losses that occur during garment production.

PROBLEM STATEMENT

As the apparel production profitability depend on the fabric consumption its fabric

utilization should be critical.

ALTEX as any other company its knitted efficiency is 75% - 85%

o company has 15% - 25% waste fabric.

company profit is much depend on the fabric utilization Wastes are Cause a problem on

profit.

So, we can use those wastes to develop a pcs of garment as contrast and full garment.

OBJECTIVE

General objective

Producing new products from waste knit fabric.

Specific objective

Decreasing fabric wastage by using the waste as value add and for

contrast

Create better product and acquire recognition.

To maximize the fabric utilization and reduce fabric waste

Increasing product and profitability.

Tools and techniques

o Wight measure in M

o Tape measure in Kg

o Fabric

o Table and

o Pai-chart

METHODOLOGY

M• Observe the cutting department

E• Finding the problem

T• Identify the scope of improvement in cutting room

M • Data collection

O • Analysis the data

D • Result and conclusion

Data collection system

Is collected through direct observation and asking questions

is in the form of

Total received fabric in Kg

Remnant, width and marker and other loss are in Meter

As ALTEX gave a grade to the discarded fabric I also set a grade based on the usability and length of the

fabric.

o Remnant loss A Grade

o Width loss B Grade, and

o Marker loss and other losses C Grade

As it varies batch to batch I collect 9 batch's with different colours and styles.

Here is average waste fabric in Kg that we can get from the data collected

B# No Used Kg Remnant Width Marker & other loss

33 389.1 2 25 65

25 397 3 25 62

35 407 3 29 68

36 396.1 3 25 60

27 430 3 27 65

28 407.7 3 22 64

29 408 2 27 51

26 415.7 2 29 50

30 301.3 3 23 47

Total 3551.9 24 232 532

So the average of the waste fabric from the collected data will be

o Received fabric in Kg is = 3551.9/9 394.65Kg

o Remnant fabric in kg is = 24/9 2.7Kg

o Width fabric in Kg is = 232/9 25.8Kg

o Marker & other loss in Kg is = 532/9 59.1

Remnant loss0.68%

Width loss6.54%

Marker loss & other loss

14.98%

utilized fabric77.8%

percent of wasted and utilized fabric

Remnant lossWidth lossMarker loss & other lossutilized fabric

The total Kg is 87.6 Kg per a batch

Data analysis

To determine how much fabric is being wasted in a batch, shift, …….. And year will be

In ALTEX 1 shift work minimum 3batch and 6 batch of knitting fabric per a day to know the wastage per shift

Solution 1 batch = 87.6Kg Z = 3 batch*87.6Kg

3 batch = Z 1 batch

262.8Kg fabric will be wasted per shift

One day has two working shift

Solution 1 day = 2* one shift 525.6Kg fabric will waste per day

. . .

….Cont.

o One year has 295 working days

Solution 1 day = 525.6Kg F =295 days*525.6Kg

295 days = F 1 day

155,052Kg fabric will be wasted per year

o Based on their GSM and other process ALTEX sold their product 45-40 birr per t-shit and

for contrasted t-shirt maximum 50 birr per t-shirt

Based on the given grade the current wastage per t-shirt and per cost is

Given

Remnant loss in t-shirt = 10 t-shirt

Cost of t-shirt = 35birr per t-shirt

Solution 1 t-shirt = 35birr R = 10 t-shirt*45birr

10 t-shirts = R 1 t-shirt

350birr/t-shirt

….Cont.

Parameter

 

KG

 

Percent %

 

Wastage per t-

shirt

 

Cost incurred Birr per

t-shirt

 

Remnant loss 2.43 0.68 10 350

 Width loss 12.9 6.54 53 1855

Total loss 15.33 7.22 63 2205

ALTEX sold the discarded fabric

For grade B sold by 8.4 birr per Kg and

Remnant loss

Width loss Marker & Other loss

For grade c sold by 2.03 birr per Kg,

To know the amount of money ALTEX found from the current waste

Solution: for grade B in a batch

1Kg = 8.4 birr S = 8.4 birr*87.6Kg

87.6Kg = S 1Kg

87.6 Kg per batch

current waste cost per batch, day,……year will be

….Cont.Parameter Kg Percent % In cost (birr)

REMNANT LOSS

 

 

8.1/shift 0.68 68.04

16.2/day 0.68 136.08

97.2/week 0.68 816.48

421.2/month 0.68 3538.08

4779/year 0.68 40143.6

WIDTH LOSS 77.4/shift 6.54 650.16

154.8/day 6.54 1300.32

928.8/week 6.54 7801.92

4024.8/month 6.54 33808.32

45666/year 6.54 383594.4

MARKER AND

OTHER LOSS

177.3/shift 14.98 1489.32

354.6/day 14.98 2978.64

2127.6/week 14.98 17871.84

9219.6/month 14.98 77444.64

14607/year 14.98 878698.8

TOTAL     1302436.8/year

current waste cost per batch, day,……year will be .

NEW PRODUCT DEVELOPMENT

New Product

Cut and sew discarded fabric

Discarded fabric

Is a process of bringing new product to a market.

Is a critical cornerstone of the firm’s success.

……Cont.

PROCESS STRUCTURE

Every new product will pass through a series of stages

How can we develop the new product ?

Waste fabric 1 Analysis 2 Ideation 3 screening 4 design objective

……Cont.

Analysis: The idea is to generate a basis for the ideation work to follow.

Ideation: the aim is to come up with previously unknown ways of using it.

Screening: This phase is for deciding which to discard and which to keep.

Photo of the product sample

AFTER NEW PRODUCT APPLIED

It doesn’t mean that all the wastes are to be used

90 % of 2.7 Kg Remnant loss, it becomes 2.43 Kg per batch

50 % of 25.8 Kg of Width loss it becomes 12.9 Kg per batch

To know the amount of money ALTEX will gate after using the wastes for product will be

Solution: 0.245 Kg = 1 t-shirt W = 29.55 Kg*1 t-shirt 7.29 Kg = W 0.2468Kg

30 t-shirt

After new product applied per cost……cont.

Parameter Kg Percent (%) In t-shirt In cost (birr)

REMNANT LOSS

 

 

7.29/SHIFT 0.68 30 1050

14.58/Day 0.68 60 2100

87.48/Week 0.68 357 12495

379.08/Month 0.68 1719 60165

4301.1/Year 0.68 17556 614460

WIDTH LOSS 38.7/shift 6.54 157 5495

77.4/day 6.54 314 10990

464.4/week 6.54 1882 65870

2012.4/month 6.54 8153 33035

22833/year 6.54 92516 3238060

TOTAL 19142.55/year   77562 t-shirt/year 3852520birr/year

Result

S/N Key performance

point (KPIS)

Before

(birr per year)

After

(birr per year)

Improvement

Rate (%)

1 Cost 1,302,436.8 3,624,593.2 64%

  Key performance point

(KPIS)

Before

(pcs per year)

After

(pcs per year)

Improvement

rate (%)

2 Production 236,000 313,562 24.7%

Conclusion

In order to remain competitive on market a company should gate profit from its product.

As we can see in the data collected

The current cost ALTEX found from discarded fabric is 1,302,436.8 birr/year

And the cost after new product applied is 3,624,593.2 birr/year

So, ALMEDA must be implement new product using the discarded knitting fabric.

RECOMMENDATION

The management may give to employees aware ness about the discarded fabric

The operators should cut discarded fabric considering that they are usable

fashion group should be created

Employee shouldn't use discarded fabric for their personal use

Optimally use the available resources.

THANK YOU