Final Report of SH
Final Report of SH
Compliance.
Submitted To:
Chowdhury A.K.M. Shamsuddin
Honorable Vice-Chairman
Azim Group (Woven Division)
49(NP), Kalurghat I/A,
Chittagong.
Submitted By:
Shariful Islam
Trainee Executive
HR & Compliance
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20 May 2018
Chowdhury A.K.M. Shamsuddin
Vice-Chairman
Azim Group (Woven Division)
49(NP), Kalurghat I/A,
Chittagong.
Dear Sir,
I would like to submit the Training report, which was done on the Azim Group
(Woven Division). The Training program has given me the opportunity to combine
my theoretical knowledge with practical experiences.
The report contains a descriptive study on “Production Process, HR &
Compliance.” Your valuable advice, suggestion and guidance have helped me to
prepare the report with ease. I hope you will appreciate my effort. I have done the
study in a complete form and I have tried my level best to conduct this in a
professional manner. It is true that, it could have been done in a better way if there
were no limitations. I hope you will assess my report considering the limitations of
the study. I will be very glad, if you kindly accept this report.
Yours Sincerely
Shariful Islam
Trainee Executive
HR & Compliance
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ACKNOWLEDGEMENT
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TABLE OF CONTENTS
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Chapter One: Introduction
1.1 Origin of the report
As a Trainee Executive, I also completed a 6 months Training program at Azim
Group (Woven Division). I am working as a Trainee Executive from 16th
November, 2017. And that period, I collected information regarding preparing a
report on “Production, HR & Compliance of Azim Group (Woven Division).”
1.2 Objective
Primary Objective:
My first objective is to work on the Marketing Mix (Product, price, place
and promotion) of Azim Group (Woven Division).
To find out that, the perception of customer differ towards factory code of
conduct.
To find out that, the perception of customer differ towards working
environment.
To find out that, the perception of customer differ towards workers safety
issue.
Secondary Objective:
Analyze compliance issues such as code of conduct, working environment
and workers safety to identify the perception of customer.
Analyze some relationship between customer and compliance issues,
Compliance practices in Azim Group (Woven Division).
HR practice according to Bangladesh labor law.
1.3 Scope
As Trainee Executive, it is very much necessary for me to know about the formal
process of Production, HR & Compliance. I have worked in different factories and
head office which helped me to get myself familiarized with the official and
factory environment in a garments industry for the first time.
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1.4 Methodology
For my report I have collected information from both primary data and secondary
data.
Primary Data: I got the data or information directly from the officials. For getting
the major competitors information I used some personal source.
Secondary Data: I have collected the secondary data from Azim Group (Woven
Division) profile, export volume report, audit reports, documents, related books
and articles on garments industry, BGMEA etc. Besides, I tried to collect data
through browsing internet also.
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Chapter Two: Garments at a Glance
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2.2 Certificate/ License of Garments Factories
The minimum requirements needed to build a new Garments factory. Azim Group
provided all required certificate and license. These are given below:
Trade License
Bank Account
Company registration by Joint Stock Company
Project and working capital loan sanction from bank
TIN & VAT certificate
Project permission letter from board of investment govt. of Bangladesh
Factory floor installation
Fire license
General insurance
Factory layout plan
Environment certificate
BKMEA/ BGMEA membership certificate
Labor certificate
Chamber of Commerce certificate
Electricity, gas WASA, boiler connection in the factory building etc.
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Chapter Three: Production
Store room: A store room is an area or room where a store or stock, of supplies or
goods used in a factory is maintained. Usually there are 6-8 workers in a floor store
room. They are may have in store room a supervisor, a needle issuer, 2 assistant
Supervisors and a supplier.
Cutting
Cutting department is an important department in RMG sector. Cutting department
is nothing without fabric cutting machine. There are so many cutting tools have
used to cut fabric. I have seen some cutting machine in those factories. They are
straight knife cutting machine, Band knife cutting machine, Round knife cutting
machine etc. They are also used a handcuff tools in cutting fabrics.
Procedure
Marking labels
Spreading
Cutting
Numbering
Bundle.
Cutting sample
Cutting is a starting process of a factory. This process starts the working of factory.
At first the marking level is done on the table. The CAD design is provided from
Production Engineering Department (PED). The rolls of fabrics are kept on the
table according to marking level. Then it is cut by cutting machine. The cutter man
cuts the whole fabric according to CAD. Many layers are cut together. A specific
measurement is calculated of fabrics roll. A roll may be consisted with many
layers. Many layers make a specific thickness. Then it is cut. After cutting the
whole fabrics they are numbered to match according to size later. It is very
important the numbering and without any size matching no parts cannot be sewed.
Sewing
Basic layout of sewing: One-line output (Washed Garments)
Front part matching and tack
Top Centre Stitch
Top Centre lower part stitch
Pocket marking
Pocket ironing
Pocket rolling
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Pocket folding iron
Pocket button hole
Pocket Attach: Pocket Stitch and pocket 1/4 stitch
Button hole and Button attach
Pocket attach Check
Label Attach in the yoke part
Back part tacking
Back yoke Attach
Back- Front marching
Shoulder 1/4 Stitch
Sleeve matching
Sleeve attaches
Armhole stitch
Quality Check
Side label attach
Side seam 1/4 stitch
Quality control Check
Collar marching with body
Collar sewing
Sleeve sewing with SLV pacing
Sleeve 1/4 Rolling
Bottom rolling
Doll House attach
Fit label attach
Pre output check
Output
Ironing
Fusing
Matching
Sewing
Turning
Forming
Quality control
Top stitch
Bottom Cut
Band Matching
Final Stitch
Neck Hole and Neck Button
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Finishing process:
Outside body check
Turning
Inside Body check
Thread sucker
Again turning
Ironing
Final Q.C Check
Get up Check:
Get up check, button check, and care label check
Shade Maintenance:
Sizing
Hang tag, Price tag attach
Hanger attach and hanger size attach
Label check, thread check
Packing process:
Needle detector: Find out needle if any.
Sensor tag: to prevent stealing.
Folding
Sizing ratio
Packing
Carton side mark
Bar code
Ware house: Ready cloths are relaxed.
P.O. wise matching
Inspection by buyer
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Chapter Four: HR & Compliance
4.1 HR &Compliance Officer
Ensuring the companies complies with its outside regulatory requirements and
internal policies. A compliance officer may review and set standards for outside
communications by requiring disclaimers in emails, or may examine facilities to
ensure that they are accessible and safe. Compliance officers may also design or
update internal policies to mitigate the risk of the company breaking laws and
regulations, as well as lead internal audits of procedures.
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Making aware the employees about personal health & hygiene, HIV/
AIDS/STD.
Conducting awareness programs to the pregnant workers about safe
motherhood.
Ensuring that no employee is maltreated mentally or physically abused.
Worker should be treated with respect & dignity.
Any other work assigned by the Management.
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4.5 Monthly activities of Compliance officer
To perform during social compliance audit.
Conducting orientation program for newly appointed worker.
Motivating and making employees conversant with the company objective,
rules and regulations, buyer code of conduct & local laws.
Making aware the employees about maternity benefits.
Making aware the employees about working hour & over time system
according to local laws.
4.6 My activity
As a Trainee Executive for Six months in Azim Group (Woven Division), so I got
the opportunity to learn lots of things about Production and compliance. In this
time I have done different Production and compliance related task in the company.
Task I have performed in the facility are categorized below:
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Chapter Five: Performance evaluation
Social responsibility and Working conditions are of fundamental importance to
successful business strategy of Azim Group (Woven Division). Workers are the
most important factor in the Azim Group and have to meet and keep their
commitment towards the workers by complying with all local laws and regulations
in all locations where business is conducted. They have to abide by the statutory
and regulatory requirements in order to contribute positively towards country and
workers through following coordinated efforts: -
Condemn Child Labor.
Condemn bonded labor / Forced Labor.
Health and Safety also Cooperative working relationship among employees
and employer.
Condemn Discrimination on any ground.
Ensuring applicable requirements of Laws & Workplace regulations.
Strongly maintained Working & OT hours within limit of country laws.
Provide all the Compensations & benefits, allowances to their workers as
defined in local laws/rules.
Strongly Prohibition of Harassment or Abuse.
5.1 Environment
Their factory and working environment is more Hygiene and safe because their
factory is housekeeping tidier; Toilets are very clean with tiles. Drinking water is
available. Sufficient cleaners and sweepers are provided for cleaning.
5.2 Custom compliance: They are maintaining as per complies with all
applicable custom laws and in particular established and complies with laws
regarding legal transshipments.
5.3 Security: They have strong security policy and Group such as Security guards
and CCTV system will be established within next 45 days for 24 hours only strong
surveillance at all access points to increase deterrence of criminal act. Visitors In-
Out every record maintained with register and VISITOR carry out the company
visitor card. They also provided with hand metal detector.
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5.4 Child Labor
According to Bangladesh Labor Law, Azim Group does not employ any child
labor in any of its departments and also does not support the use of child labor in
any of its supplier. HR department ensures that the following documents are
maintained in all the personal files of staff and workers whether directly employed
or indirectly.
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Suggestion box is placed in the facility, if any employee wants to report any
incident he/she can use the suggestion box without mentioning his/her
identity, the matter will be investigated and resolved by the Company, after
discussing the complaint with General Manager and Country Manager (if
needed).
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5.7 Action of Discoverer
A person who first detects any of the above mentioned conditions of emergency or
any other “unusual” condition which can be assessed as the reason for emergency
condition, first inform the area supervisor, informs the security guard, inform the
emergency alarm responsible person to be ready for supervisor instruction.
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5.11 Fire Protection Equipment:
Portable and fixed fire protection equipment is provided for entire factory
areas.
The fire safety officer is responsible for monthly inspection, maintenance
and required record-keeping of all portable fire extinguishers and fire
trolleys. Any used or damaged extinguisher or trolleys should be reported to
the fire safety officer.
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Workers Representation and Participation Committee (PC) has been formed in
Azim Group (Woven Division) members of committee were elected through
election took place, where nominated names were taken and workers voted in favor
of the nominee.
5.17 Discrimination
According to Bangladesh Labor Law, Azim Group (Woven Division) has an equal
opportunity employer and believes in equal opportunity for all based on merit and
ability to carry out the given responsibilities. They believe in equal pay for similar
jobs and provision of equal opportunity to all employees to enable them to grow
with the company. They do not discriminate against anyone when hiring,
promoting, paying and selecting people for training, at the time of termination of
employment or retirement on the basis of religion, race, national origin, disability,
gender, any association or political affiliation.
In cases where the potential candidate is disabling but his/her disability
cannot affect the nature of job for which he/she is seeking employment, the
company does not discourage these employees and provide them equal
opportunity to seek employment on merit.
Company ensures that in cases, where for the same type of job, male and
female employees both are employed, they are hired on equal salary
structure and company benefits and without any discrimination.
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Suggestion box is placed in the facility, if any employee wants to report any
incident he/she can use the facility without mentioning his/her identity, the
matter will be investigated and resolved by the Company, after discussing
the complaint with Head of the Factory.
A grievance is a complaint, dispute or employee’s expressed feeling of
dissatisfaction with aspects of the employees working conditions and
working relationships that are outside the employee’s control.
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5.21 Besides all gazette holidays the company also grants to employees with
following type of Leaves:
Earn Leave: EL
Every worker will be entitled to Earned Leave after completion of one year
service, which is calculated as 1 day off each 18 days working basis.
Casual Leave: CL
Every worker will be entitled to 10 days Casual Leave per calendar year.
Festival Leave: FL
Every worker will be entitled minimum to 14 days Festival Leave per calendar
year.
Sick Leave: SL
Every worker will be entitled to fourteen 14 SL on half-average wages per calendar
year.
Maternity Leave: ML
Any female worker with a minimum of six months of uninterrupted service in the
organization shall be entitled to maternity leave.
Overtime working:
On any working day, whenever a Department Head feels the need to go for
overtime production in order to meet the production/shipment targets, he/she fills
the overtime sheet by identifying the persons for overtime, duration of overtime
and activity to be done during overtime and send to Assistant General Manager,
HR & Admin or, Compliance.
Admin, HR & Compliance Executives & Assistant Manager verifies the allowable
hour’s limits for each worker identified on the Job Cards.
In case if Admin & HR Executives or Manager does not allow any worker to
cross the limits of 12 hours in a week.
Administrative approval is taken from AGM or Manager HR & Compliance.
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Working Due to Urgent Business Needs
Azim Group (Woven Division) can go for production on holidays in case of
following business circumstances:-
Any external unplanned failure, which can stop the production operations.
Admin, HR & Compliance Executives makes sure that in cases where the
company operated on Holiday/Fridays, overtime charges are paid at double
the agreed rate and workers will be given one day off within three days on
either side.
The HR, Admin, welfare staffs / Compliance staffs are responsible for
communicating; deploying and monitoring the Azim Group Garments Ltd.
defined “urgent business needs” requirements.
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On the other hand if any in-charge or supervisor is found to be involved
harassing or abusing the workers, the HR, Administration & Compliance
Executives will do the counseling and try to identify the reasons, which may
cause any disciplinary action.
Suggestion box is also placed in the facility, if any employee wants to report
any incident of harassment or abuse he/she can use the suggestion box to
lodge his/her complaint without mentioning his/her identify, the matter will
be investigated and resolved by the Company, after discussing the complaint
with Managing Director (if required).
5.23 Environment
According to Bangladesh Labor Law and Bangladesh Environmental Act, Azim
Group (Woven Division) complies with environmental rules, regulations and
standards applicable to its processes and practices environmentally conscious
practices in its work environment.
Since the nature of production is mainly stitching with cut pieces of fabric as the
main waste, the following industrial waste has been identified:-
Solid waste.
Water wastes.
Mitigation Measures:
Based on the status of environmental performance mitigation measures are
identified which can be:
Disposals of fabric waste and paper by Azim Group (Woven Division) ling
to local vendors who use it as a material for re-cycling;
The water waste generated from utilities i.e. washrooms, water cooler,
abolition area and is discharge into sewerage system.
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5.24 Custom compliance
According to Bangladesh Labor Law, Azim Group (Woven Division) follows the
below mentioned export process:
- Receipt of orders.
- L/C is received from buyer to open for import of raw materials.
- Preparation of custom documents for import of raw materials.
- Clearing the raw materials from customs.
- Preparation of exports documents.
- Negotiation.
- Receipts of export proceeds.
Marketing dept. forwards purchase orders/ Projection to Commercial dept.
for further processing.
Production coordinator does planning and evaluates the allocation of orders
as per production plan and co-ordinates with the related personal to starts
production according to purchase contract.
After completion of production the buyer’s QC or nominated agent conducts
inspection.
Booking for export of the goods are given to shipping line by Commercial
Department.
After final inspection, EXPORT form issued by concern bank and custom
documents are prepared i.e. invoice, packing list and a set is forwarded to
clearing and forwarding agent.
Clearing and forwarding agent prepares shipping bill and completes custom
formalities and hand over the goods to shipping line or their agent with
customs documents. The shipping line/agent release container for loading
and left port for destination.
After sailing of vessel, shipping line issued B/L (Shipping Documents) and
submits to negotiating bank along with Invoice, Packing list and others
documents as per terms of contact L/C.
Receipts of exports proceeds.
Finally, follow up with bank for receipt of funds and on realization of proceeds file
is closed.
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5.25 Security
According to Bangladesh Labor Law, the security system developed and
implemented at Azim Group (Woven Division) consists of:-
PMAC (Personal Movement and Access Control) by CCTV and Security
guards.
The gatekeeper to the security room intercepts anyone who enters into the
factory premises.
Security staff first inquiries from the visitor, his name, category of visitor i.e.
supplier, general visitor etc. and whom he wants to see.
Security staff provides the visitor card to visitor for his distinct
identification.
Host, security personal and the area supervisors ensures that the visitors
should only visit the area for which they have been authorized to visit and
are escorted by some company representative.
When the visitor leaves the factory premises return visitor card to the
security staff.
Area supervisors of respective sections and security personal ensure that
employees” movement should remain confined in their respective areas and
they should visit other sections only as a part of assigned job/ task.
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5.26 Store Officer/security personnel monitor the loading of
shipment by ensuring the following:
-Only authorized loaders stack the cargo
-Loaders are not changed without his information.
-Loaders do not stay inside the container for longer duration.
-Any open carton is not loaded in the container.
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Conclusion
The RMG sector is expected to grow despite the global financial crisis of 2009 and
political instability of 2014. As China and India are finding it challenging to make
textile and foot wear items at cheap price, due to rising labor costs, many foreign
investors, are coming to Bangladesh to take advantage of the low labor cost which
is really a good sign for this industry as well as for Azim Group (Woven Division).
Management of compliance is a big job and is a complex one. Social responsibility
and Working conditions are of fundamental importance in Garments. Workers are
the most important factor in Garments business and Azim Group have to meet and
keep their commitment towards their workers by complying with all local laws and
regulations in all locations where business is conducted. Azim Group (Woven
Division) is fulfilling these issues very efficiently. Now they have to follow up
these issues to sustain in the long run because in near future compliance will
become a great threat for this industry in Bangladesh. So if it can maintain its
quality and standard it can have a huge business potential.
The end
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