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Friday, February 15, 2013

Social Compliance in Apparel Industry


To implement social compliance in an apparel industry needs to follow couple of rules which are:

a.      Licenses & Permissions: Following licenses and permission must be available in the factory:

Ø  Valid factory license.
Ø  Approved Building plan by the Government Authority.
Ø  Approved Building plan for extension of Building.
Ø  Fire License (Bangladesh Fire Service and Civil Defense Ordinance 1959).
Ø  Boiler License (The Boiler Act 1923, and The Boiler Rules 1928).
Ø  Boiler Attendant competency certificate.
Ø  Environment License.

b.      Documentation: Documents must be available at factory for verification are as follows:

Ø  Drinking water test report (Written safe drinking water).
Ø  Lab test report of waste water.
Ø  Personal file.
Ø  Attendance card.
Ø  Monthly salary/wages sheet (Including all payment).
Ø  Broken needle record procedure.
Ø  Maintenance/ Service Contract letter.
Ø  Maintenance records of all machines.
Ø   Maintenance records of Boiler, Compressor and Generator.
Ø  Accident record.
Ø  Daily medical treatment record.
Ø  First aid training record.
Ø  First aid team members list.
Ø  Fire fighting training record.
Ø  Fire fighting team list.
Ø  Fire drill record.
Ø  Personal Protective Equipment (P.P.E) training record.
Ø  M.S.D.S. training record.
Ø  Safety policy.
Ø  Company policy.

c.       Compliance Representative: The factory must engage or appoint one compliance manager or officer, who will regularly monitor current information on the changes of existing local and national laws and regulations, which will immediately incorporate into the facility by informing to the appropriate management.
He must be in charge of the implementation and maintenance of all matters concerning compliance and he must have no additional duty.

Ø  Recruitment procedure:
The management must totally discourage child labor, forced labor, any type of discrimination ( direct or indirect) against any person on the ground of race, culture, values, religion, color, nationality, age, gender and marital status in the aspect of recruitment and selection.  The management must use the following procedure at the time of selection and placement of new workers:
§  Advertising for the vacant position on notice board and/or in the newspaper.
§  Short listing of the candidates based on education, qualification, and experience.
§  Conducting interview and efficiency tests.
§  Interview rating and candidate selection.
§  Age verification form educational certificate/local administration/registered medical practitioner.
§  Issuance of appointment letter along with breakup of wages and entitled benefits and the written handbook on workers rights, privilege, benefits and obligation. All copies are provided with acknowledgement of receipt.
§  Collection of joining report.
§  Briefing about workers package entitlement and benefits
§  Issuance of job confirmation/extension letter depending of performance.
Establishment of personal file with the following necessary documents:
§  Bio-data with photo.
§  Age proof document.
§  Appointment or Contract letter with receiving copy by the worker.
§  Copy of instruction to worker about personal protective Equipment. (Form example mask, metal gloves, safety guard on sewing equipment etc).
§  Leave record.
In case initially a worker is employed with 3 months probation period and based on the performance in these 3 months, the worker is either confirmed or his/her probation may be extended for another 3 months or he/she may be terminated.

1.      No Forced Or Compulsory Labor:
The factory must not use any forced labor in the form of prison labor, indentured labor, and blended labor o otherwise which is prohibited as per law of the land.
Late payments of wages and overtime will be accounted as forced labor.

2.      No Child Labor:
The company must not appoint Child Labor in accordance with ILO Convention 138 & Recommendation 146 and also in accordance with Bangladesh labor law.
No person irrespective of male and female gender, who has not completed minimum 18 years of age are not allowed to be recruited and employed for nature of job.
The company must maintain documentation “Certificate of Fitness” for each worker to be employed, that verifies the workers age and fitness. The certificate must be issued by the registered doctor and maintained in the individual personal file accompanied with a photo.


3.      No Harassment Or Abuse:
The company will ensure that no employee shall be subjected to any physical, sexual, psychological or verbal harassment or abuse.
Example:-
Verbal abuse: Chronic shouting or use of insulting or offensive language.
Verbal harassment: Chronic use of implied or direct threats.
Psychological harassment: Humiliating or intimidating verbal or non-verbal behavior including throwing of objects
Sexual harassment: unwelcome sexual advances, request of sexual favors and all other verbal or physical conduct of a sexual nature.
Physical abuse: Includes any physical contact with the intent to injure or intimidate (including throwing of objects) and discomfort.


Over time and calculation:
Overtime hours have to be voluntarily and to be compensated with the following formula on top of the normal hour wages.

Overtime rate per hour= (Basic Salary/208) X 2

The company must ensure that deduction from wages are not made for disciplinary purposes, and shall ensure that wages and benefits composition are detailed clearly and regularly for workers have a guaranty the minimum wage.

The company also needs to follow couple of act which known as “Factory Act 1965”. The act which contains is:

1.      Definitions
2.      Health And Hygiene
3.      Safety
4.      Welfare
5.      Working Hours of Adults
6.      Leave And Holidays With Wages
7.      Special Provisions
8.      Penalties And Procedure
9.      Supplement

Wednesday, March 14, 2012

PI Sheet and its items


P.I Sheet means P.I Proforma Invoice. After giving order booking to suppliers for Fabric/ Accessories by merchandising department Supplier Issue proforma Invoice.  In foreign trade transaction, a froforma invoice is a document that states a commitment from the seller to reserve some goods to be sold to a certain person, the buyer. the buyer places an order and if the seller agrees, it extend a proforma invoice and agrees to all the terms specified in it, the goods are send and the proforma is replaced by a commercial invoice Merchandising department has to check these things properly:  

Top part:
Ø     Name and address of seller
Ø     Invoice number and date.
Ø     Buyer name and address.

Body/middle part:
Ø     Product description.
Ø     Unit price.
Ø      Total price.

Bottom part:
Ø     Shipment date.
Ø     Shipment terms FOB or C&F.
Ø     Country of origin.
Ø     Terms of payment, at sight or 120 days.
Ø     Others special terms.

Saturday, March 10, 2012

Grams per Square Metre (GSM)


GSM is the short form of Grams per Square Metre. GSM is the very most important thing which defines the weight of the fabrics of knit garments.

Garment price and quality based on many things like GSM, fabric quality, colours, finishing, prints, embroidery, style, etc. But GSM is the most important thing to be decided when confirming the prices between the sellers and buyers.

GSM is the weight of 1mtr x 1mtr fabric. It means 100cm x 100cm = 10,000 sq.cms. It can be found out by any one of the below ways.
By the weight of 100cm x 100cm fabric bit.
By the weight of 50cm x 50cm fabric bit multiplied by 4.
By the weight of 25cm x 25cm fabric bit multiplied by 16.
By the weight of 10cm x 10cm fabric bit multiplied by 100.

We must be aware that if we use the smaller size bit, accurate GSM can not be achieved. The bigger size of fabric bit is better used to get exact or closer GSM.

If we have fabrics, then we don’t have any problem in finding GSM, as we can cut any dimension to find GSM. But most of the times, we will have only the garments to find GSM. And we will have to keep the garment for style, making and other references. So we will be allowed to cut a small bit from the garments. Hence nowadays, round cutters are used. This system is used worldwide. With the help of this round cutter, the fabric will be cut into a small bit.

Then the GSM of the fabric can be found out by multiplying the weight of this round bit by 100. This round bit is to be weighed in an electronic scale with milligram accuracy. As this bit is very small and as the weight has to be multiplied by 100, the fabric has to be cut very sharply to get the exact GSM. Hence the blades of this round cutter are to be  sharp and new to get the exact GSM.

Friday, March 9, 2012

Consumption Sheet preparation


For Garment business fabric consumption is very much important and also essential. When Garments get order inquiry from Buyer then fabric consumption is very much needed to make cost sheet and when order is confirm then fabric consumption need for give a booking to supplier for fabric. In time of costing if Merchandiser make a less consumption of fabric then actual need as a result factory has to pay the money for fabric so the percentages of profit is less and sometime factory has to pay from their own pocket.  The less consumption of fabric is very much responsible dos a loss of factory. As like this if consumption of fabric is more then need then also factory has to face a great loss. Also buyer loses their attraction or wish of giving the order.  
On the other hand, after confirming the order with Buyer when garment give a order in fabric manufacturing factory in that they must have to be very much alert cause if they ordered less fabric then industry will short shipped the garment so as a result factory has to face a heavy loss and as well as Buyer can be unsatisfied and then they van also ask money against the short shipped and their loss. If factory order more fabric then need then extra fabric is stay in factory so factory has to face a loss here also. Factory has to face economic loss as well as it has to share the in-house place also. Sometimes for importing more fabric then need factory can have police case also.
For making a perfect and correct consumption merchandisers have to take care some important things. That are-
    1. For a correct consumption of garments, merchandisers should have knowledge about the making of Garments. They have to know how to sewing each and every part of garments and how much extra fabric has to attach with the main measurement foe seam allowance.
    2. Merchandiser has to keep a calculation for Garments sleeve hem, bottom hem, inner facing etc for extra fabric when they make consumption.
    3. According to order if there is any matching required or any washing, dying, printing is required then extra fabric should include in consumption.  
    4. According to fabric width (like 44/45, 51/58) then it’s essential when we make a consumption. We should take care of it when we give an order in fabric manufacturing company. The booking of fabric must be base on the fabric width.
    5. Merchandiser also has to keep in head about the Shrinkage problem, so extra allowance is essential when factory make a pattern.
    6. Fabric Consumption is to made according to as per Garments size ratio for per dozen.
    7. Sometimes fabrics have to cut In bays, so for that extra fabric is needed.