Monthly Archives: October 2015

Price Quotation || Types Of Quotation For Exporting Products

The manufacturers of products are the seller of the products. A quotation is a business offer made by a seller for the interested buyer who wants to buy the certain goods at specific prices and on certain terms and conditions. The seller of the products always likes to offer better opportunity for his buyer. This the mutual agreement on which the dealing is completed. The seller always bound to fulfill the demand of the buyer. If the buyer faces any difficulties with the products they can complain to the seller.

Types of Quotation for Exporting Products: During pricing a products following quotation is considered. They are-

  1. LOCO: LOCO is the lowest quotation price. LOCO means on the spot. LOCO means that the buyer will carry his product form the seller godown to his or her factory or warehouse. All the carrying expenses are beared by the buyer.
  2. F.A.S: Free Along Side Ship (FAS) determines that the seller will bear the carrying expenses from the seller godown to the ship and the buyer will give the expenses from the ship loading to the buyer godown.
  3. F.O.W: Free On Wagon (FOW) determine that the seller will bear the expenses from the godown to the nearest railway station rest carrying will be done by the buyer.
  4. F.O.B: Free On Board (FOB) determines that the seller will bear all the expenses which required reaching the products in the board of ship at the port of shipment. Product loading expenses also carried by the seller.
  5. C&F: Cost and Freight (C&F) determines that the seller will bear all the expense which is required to send the goods from the seller godown to the buyer godown. Seller will not bear the insurance cost in this quotation.
  6. C.I.F: Cost Insurance and Freight (CIF) means that the seller will bear all the carrying cost and insurance charge of the product during caring the products from the seller godown to the buyer godown.
  7. C.I.F.E: Cost, Insurance, Freight and Exchange (CIFE) determines that manufacturing cost, insurance charge, carrying cost and exchange cost will be include in product price.
  8. C.W.O: Cash With Order (CWO) determines that the buyer of the product will send money along with the order. Order will not be executed without receiving with the order.
  9. C.O.D: Cash On Delivery (COD) determines that the buyer will pay cash after receiving the desired products to the desired destination which is ordered by him.
  10. FRANCO: In this quotation, the seller bears all expenses up to the buyer’s warehouse.
  11. F.O.R: Free On Rail (FOR) determine that the seller will bear all the expenses from the seller godown to the railway station. Seller also bears the loading cost. Rest expenses will bear by the buyer.

So, there is lots of quotation. One can easily understand the meaning of quotation if one can get clear idea about quotation.

Garment Costing Terms || Important Points For Garment Costing

Garment or apparel is the second need of human being. It is very important to wear garment for fulfill the basic needs of a man or women. Complete garments reach to the customers hand by lots of hard work and continuous process. It is very essential to calculate the costing of complete products… All the cost which is responsible for making that’s products that’s responsible to fix the price of that’s products.

In garment manufacturing units, consumption of a garment is determined by how many fabrics and accessories and other materials are required for making that’s garment. Garment costing is determined by calculating the expenses for making that’s garment. Garment costing is generally calculated by the merchandiser who is responsible for that’s specific garment item.

Important Points for Garment Costing: Different points are considered for fixing garment costing. It is very important to calculate the costing for making a garment. The profit and loss both are depends on the costing of a garment. The progress of the company depends on the proper and accurate costing of the products. Different points are considered before start the production of products. Followings are the most common points for determine the costing of garment. They are-

  1. Yarn (natural/synthetic) cost.
  2. Process cost (spinning to garment).
  3. Process lost (spinning to garment).
  4. Quantity.
  5. Quality
  6. CMT (cutting, making and trimming).
  7. Shortage in process.
  8. Negotiation with the buyer.
  9. Commission percentage for middle man.
  10. Buyer specification for define products.
  11. Mode of shipment for export.
  12. Currency.
  13. FOB (Free On Board)
  14. CIF (Cost, Insurance and Freight).
  15. OH cost (Over head).
  16. Quota for specific products.
  17. Profit.

So, there are lots of points which are important for garment costing. When one will try to calculate the costing of garment he or she should have clear knowledge about the process from spinning to readymade garment manufacturing.

Total Quality Management (TQM) || Benefits And Problems Of TQM

Total Quality Management (TQM) is the methods to achieve productivity and process efficiency by identifying and eliminating problems. TQM is a philosophy which used to improve the whole business.

TQM improves process efficiency which brings many benefits to the organizations in terms of cost and time. TQM methods eliminate the repetitive work. It also eliminate waste cost and rejects products. It is useful for eliminating repairs and reworks. It reduces customer support cost and warranty cost. TQM improves the process efficiency which leads to improve profit per products or service. TQM is used for achieve the customer satisfaction which is useful for increasing the well known face of a company. It teach to do all the work in just time. TQM increases the efficiency and productivity which is helpful for increase the profit rate of an industry. If a company can maintain TQM methods, they will get success.

TQM is a system of continuous improvement which facilities success of a company over a year. It improves the quality of the product which is more important for a company or organization. TQM is a management methods used to know the exact problems, its cause and how to fix it in a fair way.

Benefits and Problems of TQM: TQM has some benefits and problems. They are as follows:

Benefits of TQM:

  1. TQM focus on the customer needs and relationship.
  2. By TQM it is possible to achieve quality in all aspects.
  3. TQM method analyzes all process to remove defects.
  4. TQM helps to find improvement on a continuous basis.
  5. It develops team approach to solve the problem.
  6. TQM helps to maintain effective procedures of communications.
  7. It improves market share.
  8. TQM is responsible for higher productivity.

Problems of TQM:

  1. TQM needs higher training and development cost.
  2. Higher commitment is required from the entire business.
  3. It needs bureaucracy and regular audits.
  4. During process, stress is put on process not on the products.
  5. Higher skill is required for maintain TQM

So, there are lots of benefits and problems of TQM. But it is helpful for the process.