Hirdaramani Case Study

INTRODUCTION
Introduction to the Company
The Hirdaramani legacy began in 1890 when Parmanand Hirdaramani set up the first Hirdaramani retail store in Fort, Colombo. He made a name for himself in the early 1900s by introducing the concept of same-day tailoring to passengers of cruise liners that docked at the Colombo Harbour. The innovative Hirdaramani spirit took flight, emerging from these small beginnings to steadily become the one-stop manufacturing hub and diversified group that it is today.
From their beginning as a single retail store in the heart of Colombo’s commercial district, the Hirdaramani Group has diversified in recent years to encompass the apparel, leisure, power, information technology and retail industries, stamping the respected
This additional effort done by the company is just because to manage with the damages that they could experience with the process and also to deal with the sample requirement as well. Although the company management policy is so, still the company is producing more garments which is known as “Good Garments” which are additional for the requirement.
Adding more good garments is not a problem for the company where it is good to cut more as s safety procedure to deal with damages. But the issue is high cost experienced with these good garments.
Issue of good garments
Although Hirdaramani Pvt. Limited, Kahathuduwa deals with large number of buyers still the company gets order in same style from the same buyer what they have previously finished and sent. Following are some examples (Table 2 & Table 3), for the styles that has been repeatedly demanded by the buyer from the company in past six months.
Table 2: Hugo boss - 50308874 style
Time Order qty Cut qty Shipped qty Good Garments
1st time 45 65 45 20
2nd time 710 773 691
This is very normal for the company where experiencing and the issue is although the style is repeated continuously still the good garments were not considered while continuing the operations of the company. For an example in first six months the style 50308874 has been repeated four times. In very first time it was resulted to end up with 20 good garments. These 20 were kept in stores and not used again. Although the company had 20 garments in the style number 50308874 when the company gets the second order in the same style, still the company has not considered the 20 garments which were there and used to cut 773 garments for the order of 710 garments as well which was resulted to end up with another 40 good garments as well. It was resulted to end up with 233 good garments in the style number 50308874 at the end of six months where these were stored and the company has no plan to reuse these although the same style repeated continuously. This is only a single example for the issue but it is very normal for the company as