Operations Management

PROJECT REPORT

Submitted To
Dr. Govinda Bhatt
Associate Professor
Adishankara Business School

Submitted By
Arya Dileep,
Neenu Francis,
MBA A Batch
Roll No: 21 & Roll No: 30
Adishankara business School.
 L I M I T E D

Kitex Ltd is a part of the textile manufacturing unit of Anna Group of companies at
Kizhakkambalam, Aluva. It is the largest employer in private sector in the state of Kerala. It has
been on the forefront of textiles industry that designing & manufacturer of formal and fashion
wear for adults and kids. The company was established in 1975 with unmatched global
connections. The company currently employs over 5000 people at its facility, and has been a
business provider to many satellite businesses in the state. The company is currently the second
largest producer of children's apparel in the world, and is now in the process of setting up
operations in the United States of America.

1. Products /Services:

 Bags
 Garments
 Fabrics

Under the brand name ‘Kitex’, they produce range of durable ScooBee Day school bags and
travel bag product line from under the brand name Trawellday; Scoobee Loobee kids’ wear;
inner garments under the brand names: Agna for women and Adonis for men. They are
making all varieties of Greige Fabrics, Yarn dyed fabrics, Polyester-Cotton, Cotton-Nylon,
Cotton-Linen, Cotton-Lycra etc.

2. Various other units & sister concerns of the company:

 Anna Aluminium Company

Anna Aluminium is the flagship company of Anna Group. Engaged in the manufacturing and marketing
of vessels and utensils as per ISI standards for the past three decades, it is presently the only company
having ISI Certification for vessels in Kerala. The brand ‘ANNA’ has become a household name in
Kerala due to its high standards of quality and workmanship, marketed through more than 1200 dealer
outlets in India.
  Kitex garments limited

The 100% Export Oriented Unit under a separate name- ‘KITEX GARMENTS LTD’ is devoted solely to
the manufacture and export of readymade garments, as per export standards. The unit is equally
competent to execute tailor-made customer specifications along with standardized production.

 Kitex community college

This college is affiliated to Madras centre for research and development of community education. Mainly
started for the purpose of training for unemployed people to provide employment opportunity. The
courses offered are bag making, utensil manufacturing, general English, apprenticeship and training,
communication etc.

 SARA SPICES

Sara spices are the condiment producing unit of the Anna-Kitex Group. It is involved in the production
and exporting of Curry powders, whole Spices, etc. For the past two decades.

 Latest ventures

Recently Anna-Kitex Group has ventured into a number of areas. These include manufacture of instant
food and hard products. It has also started fashion technology institute to cater to the increasing demand
for qualified person in the world of fashion.

3. Potential customers, Competitors:

Customers:

Kitex group owns more than 30 showrooms in Kerala. They got 2500 authorised dealers all over
India & Middle East and are supplying to various foreign customers as well as to major exporters
all over India.

Competitors:

Bombay Dyeing Raymond Ltd Mumbai

Grasim Industries Ltd KKB Ltd

MCR cotton mill WILDCRAFT

American Tourister Diesel bags

Puma bags and umbrellas Raymond Ltd Mumbai

4. Production capacity

 Kitex is one of the major manufacturers in India with fabric making capacity. They are
capable of manufacturing more than 1.2 million meters of woven and 25t of knitted
garments per month.
 Bags are produced based on the seasonal basis.

5. Location? Why that location?

Kitex Ltd is located in Kizhakkambalam, Aluva near Kochi. It facilitates an advantage of direct
logistic connectivity with major international destinations by sea and air. The sister concerns of
Kitex Ltd are also situated in Kizhakkambalam and nearby areas.

6. Material Handling Equipment (Complete list with capacity)

 Two wheeled industrial truck or trolleys

 Four wheeled industrial truck or trolleys
 Platform truck
 Iron trolley

7. Plant Layout (Arrangement of machines & equipments on the shop floor of the plant)

It is understood that the machines in Kitex industry’s plant are arranged in a line or product
layout.

8. Industrial Safety (various safety gadgets used)

 Safety posters should be put on the notice boards

 Ventilation facility, prohibition of smoking in manufacturing areas
  Factory building should be made of fire resistant
 Industry follows in the emergency situation they can exit facility to be provided
 Warning and symbols
 Personal protective cloth wears and also wears rubber shoes and gloves.
 Proper training to workers, about the safety matter.
 Recheck the equipment everyday

9. Inputs & Processes

 Cotton is harvested from farms

 Raw Cotton undergoes Ginning and is cleaned and converted to Bales for dispatch to
Spinning Mills
 Fibres are spun to make Yarns in Spinning Mills
 Yarn, Dyestuffs and Chemicals are purchased by Kitex and tested at its laboratory.
 Dye-dispensing is done in a fully automated manner at Kitex
 Robotized, fully automated yarn-dyeing is used for value-added yarn-dyed products
 Kitex uses the most modern advanced knitting machinery from Japan and Germany to
convert yarn to greige fabric
 Greige fabric is bleached on advanced bleaching machinery from Germany
 Fabric is printed on modern rotary printing machines from Austria. Advanced features
like design-memory and extended chamber ensures high quality output
 Fabrics produced are of highest quality in terms of specification and product safety
compliance
 Automated Spreading and Cutting machines enable accurate cutting of fabrics
 Advanced embroidery machines from Germany and Japan enable value addition of
garments to cater to higher-end customers who require embroidery motifs on their
garments
 Sewing production done in a systematic manner. Advanced systems like GSD, Inspire
and ERP enable cost-effective and efficient production and tracking
10. Productivity measurement (Agency who conducted the study)

Productivity in Kitex examines the relationship between input and output in that production
process. Productivity measures are conceptualised on the basis of economic theory, properties of
a production function and results from the economic theory.

11. Quality Assurance of products:

3-STEP INSPECTION PROCESS

Strict quality controls are followed throughout the entire process, using factory evaluations, on-site production
monitoring and several inspections at various stages of production and packing

PRE PRODUCTION INSPECTION

 Help them to avoid the potential setbacks
 Help them to identify the potential issues quickly and efficiently before production begins.

MID -PRODUCTION INSPECTION

 Help ensure that the quality of goods, throughout the entire production cycle (cutting, dying,
sewing, finishing and washing).

FINAL INSPECTION
 Random inspection prior to completion confirms final quantity and quality.
 We also maintain a 100% inline and end line checking system for sewing processes and
multi-level checking system during finishing and packing.

QUALITY TESTS FOR FINISHED PRODUCTS ARE:

o Drop test
o Handle snatch test
o Jerking test
o Dimension, stitching and finishing
12. ISO 9001 Certification/ other certifications

With years of experience and dedication towards top quality garment manufacturing, The Kitex
Ltd. achieved the below mentioned certifications:
 ISO 9001:2015
They are committed to manufacture and deliver quality. ISO 9001 deals with the requirements
that organizations wishing to meet the standard must fulfil.
 Workplace Conditions Assessment (WCA)
The Workplace Conditions Assessment (WCA) program provides a powerful, cost-
effective solution for companies and facilities seeking to improve workplace conditions
efficiently and in accordance with widely accepted industry standards and best practices.
WCA addresses all key elements of sustainability and ethical practices related to work
place people, products, and environment.
 WRAP certified garment manufacturer & exporter
Kitex Garments Limited is certified at ‘Platinum’ level, the highest possible rating, by
Worldwide Responsible Accredited Production (WRAP). This certification is recognized
by all major retailers, manufacturers and importers in the US and worldwide, and gives
them assurance that the apparel produced at the accredited factory is produced in a safe,
lawful, humane and ethical manner.
 OEKO Tex Certificate of Quality
Kitex Garments Limited is certified ‘Class-I’ for compliance to Oeko-Tex Standard 100
standards. Class-I is the strictest standard for chemical product safety and is an assurance
that products so produced are safe for infants.
 GOTS certified logo for organic clothing label
Kitex Garments Limited is certified for compliance to GOTS, the worldwide leading
textile processing standard for organic fibres, including ecological and social criteria,
backed up by independent certification. It ensures organic status of textiles, from
harvesting of the raw materials, through environmentally and socially responsible
manufacturing up to labelling in order to provide a credible assurance to the end
consumer. This certification enables Kitex Garments Limited to supply certified organic
garments to customers worldwide
13. Maintenance policy
They must be a process, then working condition of plant or machinery is maintained at the
optimum level at to the given maximum output maintenance is done through repairs, partial
replacement any total replacement.
Plant and machinery in the initial days always perform to their fullest capacity and they
machinery have depreciation, wear and tear. Maintenance also required replacement decisions

14. Purchase & Stores

 Yarn raw materials are directly bring from their own plants
 Purchases raw materials from Coimbatore, and Tamilnadu. They have been a regular
supplier for long period of time
 They have a separate storage room where fabrics and accessories are stored
 The raw materials comes to this unit from the supplier and audited here and kept until it
is distributed to other units

15. Sustainable waste disposal.

 Effluent Treatment Plant (ETP)

ETP is one type of waste water treatment method which is particularly designed to purify
industrial waste water for its reuse and its aim is to release safe water to environment from the
harmful effect caused by the effluent.

Industrial effluents contain various materials, depending on the industry. Some effluents
contain oils and grease, and some contain toxic materials (e.g., cyanide). Effluents from food
and beverage factories contain degradable organic pollutants. Since industrial waste water
contains diversity of impurities and therefore specific treatment technology called ETP is
required.