Pre Manufacturing Delays in Garments Unit

CHAPTER-1 INTRODUCTION

1.1 Background Evolving

consumer

preferences

whose awareness

levels

of trends,

consciousness, disposable income and consumerism is at all time high.

fashion

This much

consumer awareness wants different merchandise at even shorter intervals complimented with greater shopping experiences, which is inducing product lifecycles to shrink dramatically, driving the needs of even more new products. So the goal is not only to deliver the product at low cost but most importantly in shorter time which we can be achieved by ensuring proper coordination among different activities. In today scenario where ―lean is the buzz word making the delivery quick and on time is the main objective of any retailer and manufacturer. Reducing the delay elements which are normally non value added elements and making the entire supply chain more efficient and agile. Hence entire pre production, production and post production activities need to be managed properly. This also leads to getting more order, more profit and good name in this competitive scenario. Pre – Production delays are the extension of the days beyond standard and planned schedule for the activities starting from order enquiry to all approvals required for bulk production. These delays increases the lead-time even more than the standard one and hence to survive in the global competitiveness is much more difficult for the manufacturers.

1.2Objectives:

Primary Objectives: 1. To find out the reasons for delays at pre-production stage. 2. Understanding the work culture of different departments, occurrence of delays and their magnitude. 3. Providing probable solutions to the delays 4. To understand cost implication of delays Secondary Objectives: 1. Understanding the concept & dynamics of delay in Pre-production. 2. To understand the various aspects in Apparel manufacturing which cause delays in pre-production activities.

1.3 Need for the study: 1. It is observed that the said company is not fully exploiting its resources as a vertically integrated company to reduce the lead time to get a competitive advantage. 2. Shrinkage in product life cycles demanding shorter lead times. 3. Garment preproduction activities taking 60-70% of total lead-time. 4. pre-production process networks are unique for every single enterprise, every single buyer, even sometimes for every single order. In the absence of a standardized process network, preproduction activities

are highly prone to delays in the process.

1.4 Scope of Study: 1. Orders, executed in the period of Apr’10-Jul’10, were selected for study in the company (IGL). 2. Helps us to get a view of process flow of product at pre-production. 3. Establish framework of set of activities required for excluding the delay element. 4. Beneficial for company to execute order with smaller runs and frequent varying style. 5. Make company proactive in approach to foresee kind of delivery schedule and an get insight of delays

1.5. Limitations: 1. Many times it was very difficult to conduct in depth interviews since the department in-charges /merchandisers did not have much time to devote. 2. Raw data collected was for three months available at Imperial Garments Unit so all suggestions and recommendations are applicable only to the said company. 3. Any recommendations regarding material procurement is not possible since all operations are not under IGL control. These are followed up by central purchasing unit of GTN Industries. 4. It was very difficult to get sufficient data regarding activities of knitting unit, Yarn processing unit & Fabric processing units since they are located at greater distances from Each other. 1.6 Expected Benefits to Sponsors:

1. Effective planning of resources. 2. Increase in the unit value realization of the company. 3. Reduce lead-time and delays in shipment. 4. Beneficial to the companies trying to execute orders with smaller runs with frequently varying styles.

1.7 Hypothesis setting: H0 : There is no difference between Planned lead time and actual lead time. H1 : There is difference between planned lead time and actual lead time

1.8 COMPANY PROFILE GTN Industries Ltd, an organization with over five decades of ceaseless efforts to select the best natural cotton fiber from the world markets & convert into value added products such as high-end fine count grey yarns, gassed yarns, organic yarns, mercerized and dyed yarns, knitted fabrics and lifestyle garments at the consumer end of the markets.

Imperial Garments Limited: A state of the art Juki assembly line garment confection arrangement at Hyderabad backed by contemporary facilities in cutting, placket welting, CAD systems & embroidery machines from Tajima provide facility which is capable of producing over 3 million knitted garments every year in the highest end of life style garments. The ability to produce and employ fabrics of finer count yarns such as NE60/2, 70/2, 80/2 and even finer in case of specific orders make an attractive proposition. A state of the art Garment Unit with built up area of 9000 sq mts spread over 7 acres with latest machinery and open width cutting capable of producing 3 million knitted garments per annum in the highest end of lifestyle garments at Hyderabad. Products: T-shirts(All types), kids wear, Sports wear. Major Customers: Nike,ITC, Pantaloons, Truworth, Dogleg, Carrefour Etc Major Vendors: Vardhaman poly tex, Priyadarsini Spinning Mills, KPR mills etc The company in which project is executed has following main departments Fabric Sourcing, Production, Sampling, Quality, Finance & Accounting,

Marketing and Human Resource Department. Printing, Embroidery. Process flow of company Salesman Sample Trade show Order booking Order to manufacture Process flow in execution for Particular Order Order from buyer Allocate to tech-pack, specifications Closing of costing with buyer Make time and action Proto for fit Size set with artworks Testing Pre production Production Post production Inline, midline, final inspection by QA Final inspection by buyer representative

CHAPTER-2 RESEARCH METHODOLOGY 2.1 Research Process:

Step I: Define the problem and the research objectives It is the most important stage, as poorly defined problems will not yield useful results. One should be careful not to define the problem too broadly or too narrowly.

Research problem: “A study on causes for delays in Pre-Production activities of garment manufacturing at Imperial Garments unit, Hyderabad.” Growing demand for new product by the customer leads to decreasing of product lead time drastically. Nearly 60% of total lead time is consumed on Pre-Production activities.

Research objectives: 1. To analyze the extent of delays in executing the orders 2. To determine the extent of pre-production delays in overall delays 3. To determine the potential areas causing frequent delays 4. To determine factors those can be controllable, to avoid delays

Step II: Develop the research plan Designing a research plan calls for decisions on data sources, choice of research design, research approaches, research instruments, sampling plan and contact methods.

Data Sources: In this research, both secondary as well as primary data have been used. The secondary data was collected from literature provided to us by the company. Also help was taken from Internet, magazines and newspapers that helped in getting latest information about the happenings in this sector. The Secondary data also includes Process flow charts, process parameters, and procedures. The primary data consists of survey of various people involved in related activities, by asking them to fill up a questionnaire and Queries from company employees to understand the process better.

Research Design Research design is the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance. A research design specifies the methods and procedures for constructing a particular study. In this research, the design is Descriptive research.

Descriptive research: It can be defined as fact finding with adequate interpretations. Fact finding would involve just data gathering. In descriptive research more is involved in the form of reflective thinking. Reflective thinking relates the facts gathered to the objectives and the assumptions of the study. It involves observing things with out influencing them. The Descriptive research focuses on the factors, which help to understand the various causes for delays in related activities.

Research Instruments: In this research, Questionnaires and Informal enquiries have been used to fill out so as to help in understanding the reasons and coming to conclusions.

Contact methods: Once the research plan has been determined, it must be decided how the Subject should be contacted: Past records available at different departments. In this survey, personal enquiries were also used.

Step III: Collect the information Information was collected from the various people involved in production over a period of time. It was filling up of the questionnaire. Apart from filling up of the questionnaire information was also collected as regard to MOF release dates, Process capacities, selection of vendors, Desired quality levels etc.

Step IV: Analyze the information The data had been segregated manually and the analysis work has been done with the help of MS.Excel. Simple tools such as standard deviations and measures of central tendency are used. The data on 24 Orders which primarily got delayed in Pre-production stage have been analyzed on the basis of the following parameters:  Sample submissions  Material procurement  Quality problems  Lab dips On the basis of Enquiries, the data were tabulated, charts were developed and findings were extracted from the research.

2.2 Research Process Flow Chart Secondary data collection Study of processes and activities Order tracking and study through questionnaire for concerned person handling the activity Identification of major problem (as per merchandiser and concerned person responsible and also as per observation made during execution of project) Analyzing problems Project suggestion Comparative analysis

Project conclusion and feedback Time TECHNIQUES OF ANALYSIS The hypothesis testing is used for the analysis of the study to arrive at conclusions which will have practical application. The results are interpreted and tabulated. Then the tables are used for comparison and analysis.

HYPOTHESIS TESTING

The difference between the two sets of scores is used for analysis. The null hypothesis is a statement to the effect that there is ‘no difference ‘specifically the null states that the average difference between the two sets of scores will be zero. That is if we found the difference between each pair of scores added these differences and divided by the number of pairs of scores the result would be zero. This would be the case if the sets of scores were exactly the same. The greater the

overall differences between the two sets of score the greater the average difference and the more likely we will be to reject the null hypothesis. The means of differences and the standard deviation of the differences are computed by using formulas The standard deviation of the differences are computed by using formulas 1.1 and1.2 Formula 1.1 Xd= ∑D/ N Where Xd is the mean of the differences ∑D is the summation of the d column Formula 1.2

Sd=√∑D²-(∑D)²/N/N

Where Sd is the standard deviation of the differences ∑D is the summation of the difference (D) column ∑D² is the summation of the D² column The test statistic computed in step 4 of the five step model will be a t-score: Formula 1.3 t(obtained)=_____Xd____ Sd/√N-1

CHAPTER -3

THEORY OVERVIEW

3.1 INTRODUCTION Benjamin Franklin aptly said that ―”to love life is to love time; since time is the stuff that life is made of” Time has always been an enigma for man; everyone feels its importance but no one really knows how to harness its real potential. The global competition, intense work pressure for faster and better delivery, optimization of profits, E-sales and E-Commerce, downtime analysis of productions process and human error, reduction in time-to-market, design driven market with quickly changing trends, customer demands for greater design variety and frequent design creation with specific changes, on-line information access in the production process, on-line transactions and most importantly, need of the mass, are some of the challenges being faced by the Fashion and Apparel industry. The Garment Industry of India is an Rs -one trillion industry. Almost 33 % of its knitwear production and about 20% of its woven-garment production, both by volume, enters export markets. Overall about 25 % of the volume of its garment production goes into export markets, leaving 75 % for domestic consumption.

The Industry covers over one lakh units and employs about 6 million workers, both directly and indirectly in almost equal proportion. The indirect portion helps to sustain the direct production sector in the shape of items associated with the garment industry production including sewing/embroidery thread, buttons, buckles, zippers, metal plates, cardboard sheets, plastic butterflies and packaging material. Organized sector of the garment industry is roughly 20% of the total industry, concentrating chiefly on exports. These are usually limited Companies while the rest are proprietary or partnership

Companies. 1 . Fabric constitutes 65 to 70% of the cost of production with labor making up a further 15% and the rest go for overheads and manufacturer's profit. 1 The main competitors of India are countries like China, Korea, Pakistan, Bangladesh, Malaysia, and Sri-Lanka. The Indian garment industry is gaining grounding the world market at breakneck speed, but still not flourished at its fullest extent.. The key factors behind this are low technological development, lower output, cut throat competition, high raw material cost, inadequate infrastructure, traditional productivity, unfavorable regulatory policies, and globalization impact 3.2 OPERATION IN APPAREL PRODUCTION Manufacturing operations in garment production incorporates pre production, production and post production activities. 3.2.1 Pre production activities Apparel manufactures develop sample size garments for a specific target market and size range. The first step to successfully executing an apparel product line for manufacturing is the development of a sample garment which meets the specifications fit and desired look of our client. If no prototypes or samples exist, product Development Department will assist in the development of original prototypes. If the replication of an existing garment style and fit is requested then it will match the fabric, trim and wash desired to client’s specifications and create sample garments for final approval and pre production. If a prototype of a new design is needed. then Product Development Department will work as an advisor with the client’s design and merchandising staff to develop a new garment from scratch. A prototype garment is generated for approval and fit modifications. After final approval of sample garments and final approval of fit and tolerances, the product development team and production team will create a size range and deliver a Pre

Production package to manufacturing facilities, monitoring and requiring that each spec standard is met to the requirements of the customer. Sourcing is to provide an experienced understanding of supplier relationships in order to develop procurement strategies destined to reduce costs, make procurement customizable, predictable and repeatable, and to provide leverage over suppliers in negotiation on behalf of our clients. Leverage is therefore eliminating one of the biggest problems associated with sourcing and

manufacturing

by

translating

all

specs

into

an

understandable

sourcing/manufacturing language, and by supervising on site all aspects of the production process. In all relationships people work best when speaking the same language, but that language changes slightly as you move from one area to the other. Some of the important pre production activities like •

Proto-type Sample development.

•

Yarn Procurement.

•

Fabric Sample development

•

Colour Development

•

Accessories Management

•

Fit Sample Development

•

Specification Finalization and Costing Calculation

3.2.2 People involved in are:•

Development Team

•

Designers/Sample Developers

•

Customers/Clients

•

Textile technologists

•

Garment technologists

•

Packaging & Dispatch

•

Sourcing & Purchasing

•

Costing & Finance

•

Sales & Marketing

•

Production Team

•

Planning & Control

•

Testing & Quality Control

3.3 DELAY Delay means retarding detention and postponement of set of event and activities and to put off them to future time. It is unplanned deferment of a scheduled activity because of something or occurrence that impede its commencement or continuation. It has time associated cost effects on a contact which may be measured in term of time money or a combination thereof. As far as apparel industry is concerned ―Deviation from quoted lead is referred to as delay Delays occur due to several reasons and these can occur at various stages of product and hence broadly Main causes for the delay can be classified as:1) Technical Problem 2) Employee related Problem 3) System related Problem 1) Technical Problem These problems are incurred due to some problem in making out the use of technology effectively and efficiently. Poor utilization of capacities also lead to delay as it would result to piling up of work which would stand pending until the earlier loads are completed.

2) Employee related Problem The garmenting activities are primarily people driven functions and employee play a very important role. There are several reasons under this category also some of them are miscommunication, wrong interpretation of the information and work get affected as all activities are interdependent on each other. 3) System related Problem This is mainly related to the process activities and the way entire system works. This includes the time taken in documentation, inter-departmental communication, the release of orders, flow of work, processes followed. The system is unique to every company and it is way the various functions are executed. And developing a system to work is very difficult. 3.4LEAD TIME AND TIMELY DELIVERIES Meeting the delivery on time is the most important factor in today market to have good reputation and existence with good market share in this competitive world. To keep abreast with the dynamic market conditions these days one need to be able to get more of the fastest selling merchandise on sale during season whilst its appeal lasts and correspondingly eliminate lines which are not popular and become drain on resources. The main areas of concern are •

Merchandise development

•

Communication

•

System compatibility

•

Long delivery time

Export market is such where there is lot of innovation in styles and particularly fashion market which very dynamic and shorter run of production are increasing day by day. Moreover examples of ZARA which produce garments and hit store with new styles

every three week emphasize more competing market.

What make situation more difficult is the interdependence of the activities and it is not at all surprising that the time taken to get goods from concept to market place is often longer than the selling season itself. The maximum amount of time spend is in preproduction activities. These activities include the process of procuring yarn and fabric, getting the samples made and getting them approved by the buyers. The actual garmenting process does not increase lead time as much as the preproduction activities. Timely deliveries in the department like fabric and color development, garment sampling etc are more important. 3.5 Reasons for Delay There can be several reasons for delay some of them can be:- Resource unavailability (Man, Machine, Material), Non Clarities from Buyer Internal Communication, Lapse External Communication Lapse Frequent change from the buyer Priorities and Internal Rejections. Reducing lead times is only possible by: Elimination (remove a process) Compression (remove time within a process)

Integration (re-engineering interfaces between successive processes) Concurrence (operate processes in parallel) 3.6 ORDER MANAGEMENT The classic definition of the Perfect Order is one that is on-time, complete, accurate, and in perfect condition. Achieving this performance consistently is no small achievement. It requires an enormous amount of operational discipline. However, your customers may not take note of operational execution. After all, they expect to get what they ordered when they want it. To achieve a Perfect Order from your customer's point of view requires much more: Meeting customer demand on a timely basis drives customer satisfaction, while ordering excess inventory hurts bottom line. Keep supply and demand in profitable balance with Distributed Order Management. That means having a global view of inventory—at the supplier, in transit or at warehouse—along with real-time aggregated order reporting. In today’s scenario company should always know what they need and what they have. Distributed Order Management simplifies fulfillment process by orchestrating the following points to be considered: i) Aggregating and prioritizing orders: This include selection of the orders and planned execution of the orders based on the importance and priority ii) Sourcing: Optimize procurement across an extensive supply network, including stores, distribution centers and suppliers, to meet current demand. Proactive generation of purchase orders for additional supplies when needed. Plan for the future with Demand Forecasting so that right product at right time is ensured. Close eye on the events that may delay order delivery based upon past records. iii) Scheduling and shipping: Efficiently route orders to customers, distribution centers, retailers and partners to minimize delivery time and storage costs.

iv) Managing exceptions and substitutions: Inventory shortages, potential customer service issues and delivery problems should be monitored, so that the time and information necessary to place new orders, reroute, substitute and communicate with customers is there. v) Reporting: Capture key performance metrics and establish benchmarks for on-time deliveries, cash-to-cash cycle time, inventory turns and forecasting accuracy. Get the information needed to continuously improve fulfillment process.

For most enterprises and their vendors, Order Management Cycle (OMC) functionality resides in the ERP, CRM and SCM functional domains. However, the requirements of the OMC focus on order processes. Business process frameworks and related business process repositories transcend functional silos and will enable enterprises to address order management challenges across all stakeholders in a hub-like manner. Today, key business drivers are shaping the future of the OMC. These include the following:

• Emphasis on processes. As process trumps functional views of business, enterprises are redefining their operational and strategic plans around key business processes including the OMC. Leading organizations adapt and modify these business processes in response to market conditions. However, most organizations manually adjust these processes and seek an automated systems approach to creating re-usable processes. • Increasing importance of service orders: Lower profit-product sales continue to take a back seat to higher-margin service orders. Expect enterprises to continue to grow warranty, installation and support revenues. As a result, service order requirements like project accounting, dispatch availability and asset scheduling will increase in importance.

• Requirements for multiple party accesses: The number of access points to order systems increases as processes encompass all departments, access order status, and review account balances. More importantly, these stakeholders expect to have the ability to change order attributes at various points throughout the order process. Focus on business processes, requirements for multiple stakeholder access, and maturation of middleware platforms in the order management cycle drives enterprises towards the concept of an order hub. As process proliferation increases around the order management cycle, standards for core and reusable processes will emerge. Together with advances in BPM tools and Web services repositories, organizations are seeking centralized management of these order processes. Growing acceptance of data hubs—such as customer, product, and supplier—is leading to this new notion of process hubs. The pairing of master data with reusable order processes will complete the OMC equation resulting in the prominence of the order hub.

3.7 Critical Chain Approach Like project management, pre-production activities in garment manufacture are driven by human parameters. Furthermore, some of the critical chain characteristics have a lot in common with garment pre-production activities, all of which are addressed specifically and decisively in the critical chain approach. These include: Reverse scheduling - scheduling of activities start backwards from delivery date; Multitasking - garment pre-production is organized chaos. Resources migrate from one project to the next to. Resources tend to migrate between orders in response to the latest, loudest customer demand in an attempt to keep as many customers satisfied as possible

and also to show as much simultaneous progress as possible to different customers; And common resource dependencies - typical apparel pre-production consists of 60 or more different tasks to be taken care by 3-5 executives in a time sharing approach. Traditional work environments put the emphasis on "not being late," but at the same time they don't promote the concept of "being early" - which leads to safety-nets, the 'student syndrome,' and Parkinson's Law taking over the process. Task estimating - When estimating the duration of a specific task, people often worry about the effect of unplanned work interruptions and add a hidden safety-net. A 10-day task may have an extra 5 days built into it. It's perfectly reasonable to include this safety factor (especially with third party activities), but because it's hidden its purpose is lost. Student syndrome - General human nature is to put off the start of any task until the last possible minute, thus eating into the safety buffer. Unfortunately, if the task then faces unplanned interruptions it will overrun the estimate because there was simply not enough time to recover. Parkinson's Law - Work expands to fit the allotted time. If a task is estimated at 10 days, it is usual for it to take less. This is because people will simply adjust the level of effort to keep busy for the entire schedule. Multi-tasking - Most people work in a multi-project environment and have to stop working on one task so that progress can be made on another task in another project. Jumping around like this results in reduced focus and loss of efficiency. Resources tend to migrate between projects in response to the latest, loudest customer demand in an attempt to keep as many customers satisfied as possible. This focus on showing progress on as many active projects as possible is the major cause of multi-tasking. No early finishes! - It is important to note that tasks seem to either finish on time, or late, but rarely early. This is because early finishes are seldom rewarded. In fact, early

finishers often being accused of sandbagging their estimates instead of being rewarded for completing ahead of schedule. In this environment, people worry about their future estimates being cut based on their past performance, so they quietly enjoy the lull and officially finish on schedule. Critical chain is the longest chain of dependent activities in a project. Activities can be depend on each other because of project structure or limited resources. Manage the flow, not projects Critical chain is a breakthrough for streamlining flow of work through multi project pipelines in a high uncertainty environment. Thus it greatly facilitates the management of projects. Indeed, experienced project managers rely instinctively on aspects of critical chain principles in planning and controlling their projects successfully Adopt counterintuitive rules Reduce the amount of work in execution. Instead of ―as soon as; possible, release work based on the availability of most loaded resources (these are what limit the amount of work that can be done) Place blocks of protective time, called buffers where they can do most good. Remove safety from individual’s tasks, and concentrate it into explicit buffers that protect the whole project-at the end of critical chain and where other chains feed it. Allow individuals tasks within projects to be late. Use a buffer index (work completed along any chain divided by the buffer consumed at the end of that chain) to drive and measure performance. Based on above schedules can be made aggressive and projects still be delivered on time, on budget and on scope. Attack Policies not behaviors It is a myth that you need to change how people behavior (procrastination, multitasking, unnecessary polishing of already finished work etc.) in order to improve project performance. The reality is that the following policy changes will give you much better

results. Replace measurement that requires individual tasks to finish on time with the ones that drive low work in progress. Mandate a minimum amount of protective time in each project, typically 50% of the sum of tasks, to assure uninterrupted flow of work. Make project due dates, sacrosanct, to be changed only by senior management. Behaviors will change gradually in response to such new management policies, which then will produce even better results.

3.8 Business process reengineering (BPR) Business process reengineering (BPR) is the analysis and redesign of workflow within and between enterprises. It help in getting was lower costs and increase quality. Design of workflow in most large corporations was based on assumptions about technology, people, and organizational goals. There are seven principles of reengineering to streamline the work process and thereby achieve significant levels of improvement in quality, time management, and cost: 1. Organize around outcomes, not tasks. 2. Identify all the processes in an organization and prioritize them in order of redesign urgency. 3. Integrate information processing work into the real work that produces the information. 4. Treat geographically dispersed resources as though they were centralized. 5. Link parallel activities in the workflow instead of just integrating their results. 6. Put the decision point where the work is performed, and build control into the process. 7. Capture information once and at the source.

3.9 ROLE OF MERCHANDISER IN PRE-PRODUCTION Today's garment merchandisers have to move with frequent changes in demand and the developing technologies utilized in manufacturing and production. To find out customer requirements, they regularly visit retail outlets, and come up with latest updates from frontline staff. In order to keep an eye on developments in sourcing, site visits are made every week to mainland factories to meet suppliers and study production. In garment merchandising, there is no specific rule, so it’s important to be able to think on one's feet. The main procedures of merchandisers are as followed: Understanding Sample Order Merchandiser has to understand the buyer’s requirements after receiving specification in the sample order. In many cases, there are modifications pertaining to the specifications in the order to dispatch on time and the right quality. He has to talk with the in-house veterans on the execution problems of sample orders, as the right information is required in decision making. Managing order route card and production timetable Merchandiser has to manage every single production schedule and order route card that helps to follow-up the execution in the planned way. It is expected to be acknowledged of the various descriptions like: design, no. of modules, no. of operators, how many processes, and date of dispatch, quantity, output capacity, and deadlines in the schedules. The sub-ordinates are normally assigned to follow-up with execution of the plan. Merchandiser plans the activities depending on the essentials or non-essentials, and top priority are given to the most essential tasks. This is customary that the essential activities are handled personally or with the support of junior merchandisers/sub-ordinates. In a ―daily schedule, merchandiser has to carry-out and categorize which is the most significant and urgent task. The activity that has to be focused with full attention to

sweep-off non-essential activities and have to be to be corrected by prioritizing to meet the deadlines. Using route card to reschedule activities To get updated on the current status on the order, the route cards should be utilized. The latest status can be fed into the computers. In case, the buyer ask for the goods prior to the deadline, then merchandiser has to reorganize the schedules to accomplish tasks, output capacity, no. of pieces to be produced daily, substitute arrangements, time availability, supply time, scheduling critical ratio, etc Submitting pre-production samples The pre-production samples should be provided on time to the concerned buyers. Quality of the sample must be verified. If required, revised samples should be made available to the buyers. Merchandiser should adjust to the required changes demanded by the buyer. The execution of bulk orders should be made only after samples are approved by the buyer. In-process inspection denote between any tasks in order-execution. In case of nonconformation, it is better to focus on the concerns of quality. Merchandisers that work on complete orders have to check deviation to the production teams so that any amendments can be done to avoid the non-conformities. Solving shortage problem The merchandiser should know about the dearth of any commodity such as fabric, yarn, etc. from the beginning. Actions should be taken immediately to arrange required materials, after discovering the shortage. It is expected that the merchandisers should verify quality of the goods prior to execution of the order. If the material is found unavailable, the superior should be informed about the concern. Communicating with associated people and buyer It is essential to communicate with the buyers regarding the order. It is expected to give

some time to the buyer to read the sent messages. Merchandiser should go through the messages received from the buyer and reply on time. In many cases, merchandisers have to provide order status to the buyers. Also, merchandiser has to communicate with the people that are in-house, venders, contractors and job-workers. Only through the right communication can one meet deadline for the concerned orders. Apart from the above mention procedures, merchandiser has to assign subordinates to help him in the order execution, and direct the procedures. He has to revise his knowledge from time-to-time to know current market trends. To record preferences for all the planned activities, use daily or time log systems. The Merchandiser should find out exact reasons for time consumption. It is necessary to keep record of time value and keeping it safe, as it is going to be shared with concerned parties/buyers. It is certain that merchandising jobs need huge time planning.

CHAPTER -4 ANALYSIS & INTERPRETATION

4.1 Data collection Extensive list of tentative reasons that could be responsible for delays are prepared as follows :•

Yarn procurement

•

Fabric development

•

Lab dip and bulk approval

•

Print related problems

•

Fabric In house

•

Special label development

•

Change of Specifications

•

Changes in bulk production

•

Testing failure

•

Multitasking

•

Miscommunication between merchandisers and buyer

These were the main reasons that were responsible for the delays in preproduction activities during an order execution. These were not the sole reasons responsible for delay but if reduced can play considerable role in overall reduction in delay in deliveries. Some of the personal delay elements observed is:•

Phone interruptions

•

Acting with incomplete information

•

Dealing with team members

•

Crisis management (putting out fires)

•

Unclear communication about the order execution

•

Inadequate training to do the job

•

Over emphasis on routine tasks

SWOT ANALYSIS OF IMPERIAL GARMENTS LIMITED During internship, the researcher observed some strengths, weaknesses, opportunities and threats of IGL which are given below. Strengths •

Big buyers from market

•

Backward integration

•

Good reputation as a unit belongs GTN industries.

•

Fully trained manpower

•

fully equipped with modern machinery

•

Efficient supply chain

•

Small orders

•

Low coordination between departments

•

Too much decentralized departments

•

No Designing Studio

•

No marketing research

•

Able to attract new customers

•

Expansion of business

•

More domestic demand especially in Hyderabad.

Weaknesses

Opportunity

Threats •

low profit margins

•

reduced lead times

•

Frequently changing styles

•

Switching of buyers

•

High quality demands

5.2 Order Tracking For Primary data collection, 35 orders, those were delayed, were studied for two months that is Jun’10 and Jul’10. It included both the historical data from records for the orders being shipped and tracking of the running styles also. In order to find delay and reasons of delay the order tracking was done and during tracking of order the entire follow up of the order right from the order received to the final arrival of fabric and trims in-house was studied. The tracking of the order involves the extensive study of the procedure of order execution in the company that is process flow during different stages like Sourcing, Merchandising, Sample development, Material Procurement and Approval. The project has been carried out in Fabric department and entire orders being tracked were of as per this department only. The tracking include the actual order follow up and also the reference of the record which is being kept in form of entry register and in the excel sheets of the merchandisers and sourcing personnel. Tracking also included the follow up of mails of merchandisers to keep record of delay reasons with dates. These are the mails which are being sent to the vendor (fabric and yarn) as a part of the information system to communicate the resubmission of the particular sample of particular material, delay in submission etc. The mails also include the internal communication to the corresponding Product department and the Quality department.

5.3 Delay in different department It was found that Out of 35 orders that were delayed, there are 24 orders got delayed primarily in Pre-Production stage.

Department

No of orders delayed

% contribution in delay

Pre-Production

24

68%

Production

8

26%

Post Production

3

6%

Total

24

100%

(including finishing)

Table No:

Fig No:

Classification of different stages of delay

S. No

Work order No

Stages of Delay

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

G1900460 G1900461 G1900487 G1900488 G1900489 G1900490 G1900491 G1900492 G1900493 G1900494 G1900495 G1900496 G1900383 G1900384 G1900386 G1900387 G1900527 G1900528 G1900529 G1900530 G1901183 G1901184 G1901185 G1901186 G1901187 G1901188 G1901189 G1901190 G1901191 G1901192 G1900542 G1900543 G1900544 G1900554 G1900555

Pre-production Production Pre-production Pre-production Pre-production Post-Production Post Production Pre-production Pre-production Production Pre-production Production Pre-production Pre-production Pre-production Production Pre-production Production Pre-production Pre-production Pre-production Production Pre-production Production Pre-production Pre-production Pre-production Production Pre-production Pre-production Pre-production Post Production Pre-production Pre-production Pre-Production

5.4 LEAD TIME V/S PRE PRODUCTION & PRODUCTION TIME Hence in 24 orders problem of delay in pre production was found and on further detailed analysis of the lead time and time spent in pre-production of these 24 order was studied it was found 65.5% of time was involved in the preproduction of these 24 orders.

Total Lead time

250 200 150

Production Pre-Production

100 lt 50 0 1

3

5

7

9 11 13 15 17 19 21 23 Production Order

Fig GRAPHICAL INTERPRETATION OF LEAD TIME V/S PRE PRODUCTION & PRODUCTION TIME

Preproduction & production durations S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Work No

order

G1900460 G1900487 G1900488 G1900489 G1900492 G1900493 G1900495 G1900383 G1900384 G1900386 G1900527 G1900529 G1900530 G1901183 G1901185 G1901187 G1901188 G1901189 G1901191 G1901192 G1900542 G1900544 G1900554 G1900555 AVERAGE

Color

Total Time

Black Peacoat kelly green DK Shadow Chalk Tropical Red Coffee Bean Olive Wine Red DK Shadow Black Sprit pink Red Black Olive Yellow Terracotta Blue White Coral Fresh Green Blue Marl Yellow Marl

90 80 90 75 80 90 90 90 90 85 80 90 90 90 90 90 110 90 90 60 100 90 90 90

Lead Preproduction 60 50 60 45 50 60 60 60 60 55 50 60 60 60 60 60 80 60 60 30 70 60 60 60

production 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30

%time in preproduction 66.7 62.5 66.7 60.0 62.5 66.7 66.7 66.7 66.7 64.7 62.5 66.7 66.7 66.7 66.7 66.7 72.7 66.7 66.7 50.0 70.0 66.7 66.7 66.7 65.5

TATISTICAL ANALYSIS TABLE S.No

Work order No

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Planned lead time 90 80 90 75 80 90 90 90 90 85 80 90 90 90 90 90 110 90 90 60 100 90 90 90

G1900460 G1900487 G1900488 G1900489 G1900492 G1900493 G1900495 G1900383 G1900384 G1900386 G1900527 G1900529 G1900530 G1901183 G1901185 G1901187 G1901188 G1901189 G1901191 G1901192 G1900542 G1900544 G1900554 G1900555 Sum Mean actual lead time : 97.1

Actual lead time 103 97 107 85 82 94 94 99 97 93 84 97 101 96 102 104 116 94 96 66 114 99 105 105

d

d2

13 17 17 10 2 4 4 9 7 8 4 7 11 6 12 14 6 4 6 6 14 9 15 15 220.0

169 289 289 100 4 16 16 81 49 64 16 49 121 36 144 196 36 16 36 36 196 81 225 225 2490

Mean Planned lead time : 87.9 Null hypothesis Ho: μd=0 ; Alternate hypothesis

(H1:μd≠0)

Selecting the sampling distribution and establishing the critical region Sampling distribution = t distribution Degrees of freedom = N-1=24-1=23 t(critical)

= 2.069

t(obtained)

= 4.44

Making a Decision: The test statistic is in the critical region so we can reject the null hypothesis. The difference in prejudice scores from the plan days and actual days is statistically

significant

GRAPHICAL ANALYSIS OF LEAD TIME 140

Number of days

120 100 80

Planned lead time Actual lead

60 40 20 0 1 3 5 7 9 11131517192123 Production Order

Fig: Interpretation: As it can be seen that mean actual lead time is higher than the mean planned lead time, so it can be said that there is significant differences between these two values. Same thing has been proved in t-score test also.

STATUS OF ORDER TRACKED S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Fabric In-house Actual 3/7/2010

Total delay

Reason

Black

Fabric In-house Expected 20/06/2010

13 days

Material procurement, Approval delay, Quality problems

peacoat

8/7/2010

25/07/2010

17 days

Quality problems, Lab dip, Approval Delay

kelly green

8/7/2010

25/7/2010

17 days

Spec. change, Material Procurement

DK Shadow

20/07/2010

30/07/2010

10days

Approval delay, Lap Dip

Chalk

28/07/2010

30/07/2010

2 days

Quality problems, Specs Change

G1900493

Tropical Red

22/07/2010

26/07/2010

4 days

Approval delay, Material Procurement

G1900495

Coffee Bean

22/07/2010

26/07/2010

4 days

Lap dip, Material procurement, Quality problems

Olive

15/07/2010

24/07/2010

9 days

Specs change , Approval delay

wine

15/07/2010

22/07/2010

7 days

Material procurement, lab dips

red

14/07/2010

22/07/2010

8 days

Specs change, Quality problems, Approval Delay

DK Shadow

16/07/2010

20/07/2010

4 days

Material procurement, Lap Dip

Black

25/07/2010

1/8/2010

7 days

Quality problems, Approval delay, Specs change.

Sprit pink

30/07/2010

10/8/2010

11 days

Lap Dip, Approval procurement

Red

4/8/2010

10/8/2010

6 days

Specs change, Approval delay

Black

4/8/2010

16/08/2010

12 days

Lab dip, Material Procurement, Specs Change

Olive

4/8/2010

18/08/2010

14 days

Quality problems, Material Procurement, Specs Change

Yellow

10/8/2010

16/08/2010

6 days

Quality problems, Approval delay

Terracotta

11/8/2010

15/08/2010

4 days

Material Procurement, Approval Delay

blue

12/8/2010

18/08/2010

6 days

Approval delay, Specs Change

White

10/8/2010

16/08/2010

6 days

Material Procurement, Lap Dip, Specs Change

Coral

19/07/2010

2/8/2010

14 days

Material procurement, Quality problems, Approval Delay

Fresh Green

18/7/2010

27/07/2010

9 days

Approval delay, Quality problems, Lab dip

Work order No

G1900460 G1900487 G1900488 G1900489 G1900492

G1900383 G1900384 G1900386 G1900527 G1900529 G1900530 G1901183 G1901185 G1901187 G1901188 G1901189 G1901191 G1901192 G1900542 G1900544

Color

Delay,

Material

23 24

G1900554 G1900555

Blue Marl

20/07/2010

4/8/2010

15 days

Material procurement, Quality problems, Approval Delay

Yellow Marl

22/07/2010

6/8/2010

15 days

Lab dips, Material Procurement

4.5 DELAY REASONS During the tracking of the orders which included both Historical data and the follow up of the running and shipped during the project period. The following main reasons are summarized Change of Specifications Fabric quality Lab-dip and bulk approval Material procurement Approval delays

Broad classification of reasons for delays S.No

Reasons

Cases Recorded

As a Percentage of total cases

1

Material procurement

15

62.5

2

Lab dip Specification Changes

11

45.8

8

33.3

Approval delays

14

58.3

3 4

5 Quality Problems 11 45.8 Table No: (The reasons for delay are not independent, within one case the reason for delay be multiple. Percentage were calculated =Reason for delay/Total no. of cases*100)

Obs erved delay reas ons 16

15

14

14 11

No of C as es

12 10

11 8

8 6 4 2 0 Material proc urem ent

L ab dip

S pec ific ation C hang es

Approval delays

Quality P roblem s

R e a sons

Fig 5.4 Interpratation: From the figure, it can be understood that material procurement and approval delays are contributing more for delays.

4.5.1 Approval Delays The second biggest problem which is not allowing the various departments to plan and perform according to their capacities is the problem of approvals i.e. at various stages the departments especially embroidery, printing, knitting and dyeing have to wait for the various approvals. Although there is no permanent solution to this problem we can only work to minimize the loss due to this problem. The reasons for Approval delays are categorized as follows:1) Priorities 2) Internal Rejections 3) Incomplete Submission 4) Change in Product team specifications Priorities Delays occur due to changing priorities at various supply chain level which mainly cause approval delays at the office and at merchandiser table. Resources tend to migrate between projects in response to the latest, loudest customer demand (merchandiser) in an attempt to keep as many customers as possible. Internal Rejections: It is one of the major in house delay problems. Mainly occurs due to the lack of communication between the sampling team and merchandising team handling the particular account. Many times there are several styling element and other changes that are being done by the sampling team after the sample is being made. There are times that they do not like the material or printing technique or any other stylization and hence they want to Change it at that time these causes delay as approval take long time and also new samples need to be developed.

Changes by the Product Team A considerable time is involved in coping with the changes made by the Product Team. This need to be controlled as last minute changes lead to the great loss of time and money. The changes that normally done are:- Change in the trims like buttons Change in the print colors and sometime change in the print which leads to new development of screen and cause delay. Change in the color ways in which the order was placed initially Change in style that does not alter much of fabric consumption Reduction in Order quantity Prep one of the some orders from the decided arrival plan. Sometimes there is also delay which is being desired and done in orders keeping in mind several factors the competitor launch, market condition and matching theme of the launch. Incomplete submission: This was the one of the reason which leads to delay just because samples and another submission such as artwork etc without complete information and full package as required for nay approval. For example for size set approval a full package including original sample, proto, specification sheet and any previous size set sample if it was rejected earlier. Similarly the complete information regarding every submission from supplier and vendor is required. Missing information lead to either resubmission or wait for required information and in both cases there is loss time and delay happening.

Approval delays:

No.of cases

as a Percentage

3

21.4

2

Priorities Changes During bulk production

4

28.6

3 4

Rejections Incomplete Details

3 6

21.4 42.9

S.no

Reasons

1

Table No: (The reasons for delay are not independent, within one case the reason for delay be multiple Percentage were calculated = Reason for delay / Total no of cases *100)

Approval delays 7

6

No of cases

6 5 4 3

4 3

3

2 1 0 Priorities

Changes During bulk production

Rejections

Reasons

Incomplete Details

4.5.2Quality related problems: The main quality problems that are responsible for delays are Fabric GSM (grams/square meter) variations and shade variation between different fabric rolls. Different type of knitting machines producing different weights, some fine tuning of knitting process is required. Changes in bulk production, resulting in deviation in colour development from samples approved. Some times it was observed that Barre/patta ie stripes were appeared in fabric, Any material variation in producing yarn or mix up of different lots yarns leads to this type of problems. Spirality, at times higher than the expected levels of 5% was resulted in delays in Fabric in- house.

Quality Problems

S.no

Reasons

Cases Recorded

As a Percentage of total cases

1

Fabric GSM variation

2

18.2

2

Barre/Patta problem

3

27.3

3

shade variation in bulk

5

45.5

4

Spirality

1

9.1

Table No: (The reasons for delay are not independent, within one case the reason for delay be multiple Percentage were calculated = Reason for delay / Total no of cases *100)

Quality Related Problems 5

6

No.of cases

5 4 3

2

3 1

2 1 0 Fabric GSM variation

Barre/Patta problem

shade variation in bulk

Spirality

Reasons

It is observed many times that shade variation and patches in finished fabric causes material shortage hence delays. So, it demands proper process control.

4.5.3 Delay in Lap Dip These delays result from problems related to the prints and colors not matching the specified standards and merchandise not getting the desired hand feel. Print and color related problems: - These problems arise when the supplier is not able to achieve specified prints and colors. The supplier gets the Lap dips and strike offs approved but are somehow unable to get the same quality in bulk.

Delays in lab dip

No.of cases

as a Percentage

1

Reasons Internal Communication Lapse

4

36.4

2

External Communication Lapse

3

27.3

4

36.4

2

18.2

S.no

3 4

Not desired shade Changes during bulk production

(The reasons for delay are not independent, within one case the reason for delay be multiple Percentage were calculated = Reason for delay / Total no of cases *100)

Delay in Labdips

No of cases

5

4

4

4 3

3 2 2 1 0 Internal Communication Lapse

External Communication Lapse

Not desired shade

Changes during bulk production

Reasons

This might happen due to no of reasons:1) Miscommunication between supplier and the company: The change in the dyeing and printing mill at the bulk stage in order to cut down the costs Lack of the uniformity in different batches being dyed as the change by the Product team in quantities lead to dyeing at different times and batch and hence change in the shade and the tone. 2) There is test failure also in which the fabric is not able to pass the chemical and physical test. Wash Test there is failures mainly the shrinkage, crocking, staining and print chip off. Wash test failure is observed in most of the cases and hence this causes resubmission and hence it lead to delay. Internal Communication lapse is another reason responsible. Communication plays a very important role in the success of any organization. The success of an organization depends

largely on correct and speedy delivery of information to concerned departments. Right information at right time plays a significant role in getting desired beneficial outcome. There is lot which can be improved in this case and hence money and time can be saved. For example:•

Sourcing team is not informed about the changes suggested by buyer from merchandising team and it is only at the last moment that they got to know it.

•

Miscommunication between Quality and Merchandising team regarding Test report

•

Incomplete information transfer regarding changes made to corresponding concerned departments

•

Lack of co-ordination and transparency between various teams.

Apart from the internal communication External Communication also plays important role. External Communication comes into role when the information needed to be passed over to the other units such as knitting division, fabric processing unit. As in these cases there are many cases

when there is

incomplete information transfer

and

miscommunication that is being made. For example:- Mail to the processing unit mention that fabric color need to be lighter how much tone lighter is not mentioned and hence great need to clarify and so amount of time is wasted in these clarifications.

4.5.4 Delay in Material procurement Approximate 62.5% of the delay cases are due to delay in the material procurement and Poor material procurement planning is responsible for this which include Material shortage, Resource Unavailability and Embroidery and Print Delay. The main reasons for the material shortage is variation between the actual and indent consumption and quantity received is less than ordered. Higher wastage and re

cutting can lead to shortage moreover pilferage at vendor is also one of the reason that can lead to shortage.

Delays in material procurement

S.no

Reasons Resource unavailability Priorities Material shortage Fluctuation in Yarn prices

1 2 3 4

No.of cases

as a Percentage

4 5 4

26.7 33.3 26.7

2

13.3

(The reasons for delay are not independent, within one case the reason for delay be multiple Percentage were calculated = Reason for delay / Total no of cases *100)

Material Procurement 6

5

No of cases

5 4

4

4

3 2

2 1 0 Resource unavailability

Priorities

Material shortage

Fluctuation in Yarn prices

Reasons

There are chances that the shrinkage of the fabric received might not match the planned shrinkage of the fabric. Another possible reason is improper documentation

and wrong details. Resource unavailability mainly includes manpower and machine unavailability which in turn causes the material throughput time and material delays at various levels. Priorities here tend to migrate resources between projects in response to the latest and loudest customer demand. As far as Embroidery and print delay are concerned it is the development of strike off and samples as per required specification. Sometime there is ambiguity regarding the sample developer and his end time order lead to lack of planning so plan in advance can greatly reduce this problem. Fluctuation in yarn prices forces the management to wait for some time.

4.5.5 CHANGE IN SPECIFICATIONS In 33.3% of cases of main delay causing reason found out was the frequent change in the specifications of the style.

Delays due specification changes:

S.no

Reasons

No.of cases

as a Percentage

1

Internal Communication Lapse

3

37.5

2

External Communication Lapse

2

25.0

3

Lack of standardization

2

25.0

4

Changes during bulk production

3

37.5

The factor for delay are not independent, within one case the factor for reason be multiple. Percentage were calculated =factor for delay/Total no. of cases*100)

Graphical interpretation:

Delay due to Specifacations change 4 3

No of cases

3 3 2

2 2 1 0 Internal Communication Lapse

External Communication Lapse

Lack of stadardization

Changes during bulk production

Reasons

It was found that primarily there was change in specifications because there was no standards being set up for the fit and specification of even basic styles like crew neck tshirts and polo t-shirts also. There are times when the merchandisers sent the sample on old specification instead of getting new specifications and hence again resubmission. some times changed specification are not being sent and only comments are sent by the merchandisers and hence they are unable to understand and develop sample according to new specification. So again in this condition resubmission of sample is required is required. These specification changes are the major contributor to the delay in pre-production of particular style example location of logos and pocket positions etc..

4.5.6 Summarization of the Delay Reasons:

11

Material procurement Lab dip

15 DELAY

14 11 8

Specification Changes Approval delays Quality Problems

Factors for each reason: Material Procurement Resource unavailability Priorities Material shortage

Lab-dips Internal communication lapse External communication lapse Changes in bulk Production

Priorities

Lack of standardization

Changes in Specification Internal communication lapse External communication lapse hanges in bulk Production Lack of standardization

Quality Problems Fabric GSM variation Barre/Patta Shade variation Spirality

Approval Delays Priorities Changes in Bulk Rejections Incomplete submissions

CHAPTER- 5 FINDINGS, RECOMMENDATIONS, CONCLUSIONS AND FUTURE PROSPECT OF PROJECT

5.1 Identification of Controllable and Un-controllable Delay The first step in the reduction of the delay is to identify the delay reasons and their factors as Controllable and Uncontrollable. It was primarily done after discussion with merchandisers and coming on the single consent based on the secondary data collection. There was format which was filled up by the merchandisers to spot controllable and un controllable delay and suggested measure against the controllable delays.

Reasons

Merch

Merch

Merch

Merch

Merch

Merch

Merch

Merch

Merch

Merch

Merch

Merch

ant 1

ant 2

ant 3

ant 4

ant 5

ant 6

ant 7

ant 8

ant 9

ant 10

ant 11

ant 12

nc

nc

nc

Nc

nc

nc

nc

nc

nc

nc

nc

nc

c

nc

c

c

c

nc

c

c

c

nc

c

c

c

c

c

c

c

c

c

c

c

c

c

c

Priorities

nc

nc

nc

Nc

nc

nc

nc

nc

nc

nc

nc

nc

Not desired

nc

nc

nc

Nc

nc

nc

nc

nc

nc

nc

nc

nc

c

c

c

c

c

c

c

c

c

c

c

c

c

c

c

c

c

c

c

c

c

c

nc

c

c

c

c

c

c

c

c

c

c

c

c

c

Rejections

nc

nc

nc

Nc

nc

nc

nc

nc

nc

nc

nc

nc

Multitasking

c

c

c

Nc

c

c

c

c

c

c

c

c

Quality

c

c

c

c

c

c

c

c

c

c

c

c

Resource unavailability

Print delay Material shortage

Shade

Internal communication External communication

Change

by

product

problems

Here nc stands for Uncontrollable and c for Controllable delays

The above table shows the merchandiser point of view. Further, Based on discussion with the senior executives, the final list of controllable and uncontrollable delays was summarized as:Controllable

Uncontrollable

Embroidery delay

Resource unavailability

Print delay

Priorities

Material shortage

Unable to achieve desired shade

Internal communication

Rejections

External communication Quality problems Changes by bulk production Incomplete Submission Lack Of standardization

Hence, the action plan was developed for each of the controllable delays so that the delays can be reduced to increase on time delivery rate and to save money for technological advancement which is otherwise lost in discounts.

5.2 Developing Action Plan 5.2.1 Embroidery and Print Delay •

These delays can be reduced by planning in advance the according to the capacity of the company.

•

Better strategies to be adapted to have Control over the subcontractor.

•

QC should be made part of Pre- Production meeting which presently includes the Merchandiser of Company and Technicians. These discussions should also be done before inspections. The QC needs to be proactive than reactive.

•

Try to avoid accepting the new styles especially avoid accepting big order.

•

Sufficient Research and Development should be done during salesman sampling. That is the printing technique to be used, the standards of testing to be followed and the stylization aspects needs great concern.

5.2.2 Material Shortage •

Proper documentation with correct of order quantity and time of delivery

•

Proper planned quantity should be ordered and it requires correct calculation of quantities required based on order and taking in account of wastage percentage based upon previous orders.

•

Accepting the orders where the minimum order quantity is achieved.

•

Ensure some allowance for extra shipment in all orders.

5.2.3 Internal Communication •

Maintaining transparency between different teams by sharing information

•

Ensure access to the order status to all the team members by providing the common folder in the shared document about the order status. This should include entire status including the comments which need to be regularly updated.

•

With starting of each order, members of all the teams should organize common meeting for clear understanding of order i.e. quality levels, stylization, fit, special value addition etc and doubts are cleared.

5.2.4 External Communication •

This should be as clear as possible.

•

Set up the clear time line for approvals.

•

Determine required time line for proto approval as one week from the date of entry in the sampling register.

•

Determine required time line for the size set and PP approval as three working days from date of entry in sampling register.

•

Accountability should be clear that is PP must be signed off by sampling incharge. Final approval should be given after consent of Quality team and Product team as it is going to be as standard for bulk

•

Clear comments to be followed should be informed to the vendor through mail also.

•

Handwriting on the Sample needs to be legible

5.2.5 Changes in bulk: •

Try to freeze process details before order placement with the other units

•

Meeting session should be arranged for finalization of requirements as per consent and requirement of all the three teams i.e. the Product, Quality and Sourcing team.

5.2.6 Incomplete submission The guidelines should be provided to the vendors for the submission of samples (Especially yarn dyed samples). All the samples that are to be submitted for the proto, Sizes set and PP approval need to be with base pattern along with the previous sample, original sample, proto and size set. It should be sent to the concerned Merchandiser attention. Base size pattern need to be marked with the seam allowance, Style no., Grain line, details of each part and most important with shrinkage Ensure that all suppliers should use specification sheet or work orders sent by the Company. Any alternate trim used, it needs to be documented. Original trims to be approved within one week.

5.2.7 Established the standard time and action Plan for preproduction activities Solid Fabric Delivery schedule of the Normal solid dyed solid dyed fabric.

lab dips approvals yarn sourcing fabric knitting processing Total if loose knit tip total with loose knit if Tirupur transportation Over all total

Mercerized

sales man Days

bulk days

salesman days

bulk days

3 to 5 days 5 2 7 14 2 16 4 20

3 to 5 days 7 7 15 29 8 37 4 41

5 to 8 days 3 2 9 14 2 16 4 20

5 to 8days 5 7 20 32 8 40 4 44

Notes: Above schedule is effective after approval of lab-dips from merchandiser as well buyers. Above deliver schedules are only for normal yarn i.e. 20 C, 30 C, 34 C ,40 C, 2/50 2/60 CGX,CGMX. If any mélange yarn is involved, it will take yarn delivery 40 to 45 days+ 7days Transit time. If any special yarn or blend yarn order, yarn sourcing time will be reviewed. Above schedule is for max five shades.

Yarn Dyed Fabric

Delivery schedule of the yarn dyed fabric.

Gassed & Merc. dyed yarn

Normal soft yarn dyed

lab dips approvals

sales man days 4

yarn sourcing

15

fabric knitting 2 Minimum 600kgs order /m/c. Processing 3 Total 24 if tirupur transportation 4

Bulk Days 10 Inclusive Transit to & fro 35 Inclusive Transit time 7

salesman Bulk Days days 4 5

20

35

2

9

4 56

4 30

5 49

4

4

4

Over all total 28 60 34 53 Notes: *Above schedule is effective after approval of lab-dips from merchandiser as well buyers. *Above deliver schedule are only for normal yarn i.e. 20 C,30 C,34 C ,40 C ,2/50 2/60 CGX,CGMX. *If any mélange yarn is involved will take yarn delivery 40 to 45 days+ 7days Transit time. *If any special yarn or blend yarn order yarn sourcing time to be reviewed. *Above schedule is for max five shades/order.

5.3 CONCLUSION

A penny saved is a penny earned. The delay reduction and Control measures suggested herein when implemented will result in limiting the huge sums of money that supplier pay against delayed orders and will also increase On time delivery rate. The Senior Merchandisers, Merchandiser and Product and Quality team were asked to categorize the cause of delays into controllable and un controllable delays If above measures would have been used for 24 orders which were studied in which preproduction delay was observed out of total 35 orders.

Now Total Orders Studied- 35 Pre-production Delay found- 24 Order in which delay could be controlled-18 Discount Slab >5 days – 2% of bill value >12 days – 5% of bill value >15 days-10% every week of bill value *Foreign buyers prefer air lifting, In this case Amount to be paid for transit will be much high.

Table showing total bill value of 18 orders which could be controllable delay S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Work order No G1900460 G1900487 G1900488 G1900489 G1900492 G1900493 G1900495 G1900383 G1900384 G1900386 G1900527 G1900529 G1900530 G1901183 G1901185 G1901187 G1901188 G1901189

Quantity

Price

Total Bill

15000 20000 25000 10000 5500 10000 12000 25000 8500 10000 20000 10000 20000 15000 17000 35000 20000 15000

290 210 190 299 350 305 325 198 320 255 199 250 210 320 210 220 250 260

4350000 4200000 4750000 2990000 1925000 3050000 3900000 4950000 2720000 2550000 3980000 2500000 4200000 4800000 3570000 7700000 5000000 3900000 71035000

Total

The orders on an average got delayed by 9.2 days Hence the Total Discount offered: - 5% of Bill value Re71035000*5/100 = Rs 3551750 The projected increase in on time delivery Efficiency:The current delay happening due to pre production is 68% Total Orders Studied =35 Projected Total on time delivery after project suggestion = 18% Hence reduction in Pre Production Delay = 68-(18/35)*100 = 51.4%

5.4 Future Prospect of the Project A project when completes lays the foundation for another Research study, for nothing is ever perfect. The scope and limit of the project did not permit the implementation and result analysis of the suggested measures. However some of the suggested measures being implemented on 6 orders and hence the observed results are explained in below table.

Reason of delay

Factors responsible

Material Procurement

Resource unavailability Material shortage Priorities

Lab dip

Not desired shade Internal Communication Lapses External communication lapse Change by product

Approval

Priorities Change by process team

Suggested measure implemented

Suggested Measure considered for implementation In advance Advance capacity planning planning and and having Made arrangements for supplier control Sufficient yarn stock of regular counts

Percenta ge reduction in delay 30%

Meeting and training suppliers

16%

----of

Frequent meeting sessions should be arranged with middle level people to discuss capacity planning, shades matching etc

Set up the required timeline for approval of samples at various stages.

Rejections Incomplete submissions

Set up the procedure & accountability for

60%

approval Set up the clear instructions to vendors for sample package being sent to the office for approval Change Specification

in Internal communication Lapse External communication Lapse Changes in bulk Lack of standardization

Standardization of specification in consent with all three teams i.e. Merchandising, Quality and Product.

Setting up of 30% accountability for last minute changes by team

Setting up time for complete style finalization before order booking by merchandiser

Quality Problems

Priorities for selected suppliers

Selection of right supplier

Unplanned Purchases

Advance planning for right product

20%

References 1) Overview of the Indian garment industry By : M. K. Panthaki http://www.fibre2fashion.com/industry-article/14/1346/ overview-of-the-indian-garment-i ndustry1.asp

2) The critical chain approach to apparel p roduction 19 March 2003 http://www.just-style .com/a rticle.aspx?id=93070

3) Multi-Project Critical Chai n: Three Vital Points http://www.realiza tion.com/pd f/CriticalChain_VitalPoints.pdf

4) Apparel Supply Chain and Its Variants By: Debasis Daspal www.fibre2fashio n.com /industry-article/11/1067/apparel- supp ly-chain-a nd-itsvariants1.asp

5) www.yantra.com /downloads/whitepapers/7x/ Distributed-order-management.pdf

6) Jana,Prabir(2001), Supply chain Dynamics in Indian Apparel Export Manufacturing: A critical Chain Approach 7) Bussiness Process reengineering www.12manage.com /methods bpr html

8) www.authorstream .com/prese ntation/shrira nga n1986-97289-retail- Merchandising -reatil-education-ppt-powerpoint

Bibliography 1) Chandan JIT S, Statistics, 2000,2nd ed; New Delhi: Vikas Publishing house pvt ltd. Ch.12,p.263.

2) Krishnaswami K N, Appa iyer Sivakumar,Mathirajan M, Management Research Methodology, 2008, 2nd ed; New Delhi: Dorling Kindersley(India) Pvt. Ltd. Ch.7,P.163.

3) Jana, Prabir, (2001), Supply chain Dynamics in India n Apparel Export Manufacturi ng: A critical Chain Approach.

4)

Sunil

Chopra,

Peter

Meindl,

Supply

Chain

Management,2004,3rd

ed;Delhi:PearsonEducation (Singapore) Pte. Ltd.

5) Jeremy A.Rosenau/David L. Wilson, Apparel Merchandising,2nd ed; New York: Fair Child Publications,Inc.

6)

Ruth E. Glock, Grace I. Kunz, Apparel Manufacturing, Sewn product

Analysis,2005,1st ed; NewDelhi: Kindersley(India) Pvt. Ltd.

CONTENTS

S.No

DESCRIPTION

Acknowledgement List of Tables List of Figures Executive Summery

CHAPTER 1 1.0

Introduction

1.1

Background

1.2

Objectives

1.3

Scope of the study

1.4

Limitations

1.5

Expected Benefits

1.6

Hypothesis

1.7

Company Profile

CHAPTER 2 2.0

Research Methodology

2.1

Research Process

2.2

Research flow chart

CHAPTER 3 3.0

Theory Over view

3.1

Introduction

3.2

Operations in Apparel Manufacturing

3.3

Delay

3.4

Lead time and timely deliveries

3.5

Reasons for delays

3.6

Order management

3.7

Critical chain approach

3.8

Business process review

3.9

Role of merchandiser in Pre production

PAGE NO

CHAPTER 4 4.0

Analysis and Interpretation

4.1

Data collection

4.2

Order Tracking

4.3

Delays in different Departments

4.4

Lead time v/s production& Preproduction times

4.5

Delay Reasons 4.5.1

Approval Delays

4.5.2

Quality Problems

4.5.3

Lab-dips

4.5.4

Material Procurement

4.5.5

Specification Changes

4.6

Questionnaire analysis

CHAPTER 5 5.0

Finding and Conclusions

5.1

Identification

of

controllable

and

controllable delays 5.2

Developing action plan 5.2.1

Embroidery and Print Delay

5.2.2

Material Shortage

5.2.3

Internal Communication

5.2.4

External Communication

5.2.5

Changes in bulk

5.2.6

Incomplete submission

5.2.7

Established the standard time and action for preproduction activities

5.3

Conclusions

5.4

Future Prospect of the Project

Appendix Primary data T&A Tables Knitting unit capacity

non

Yarn processing unit capacity Fabric Processing unit Fish bone diagram iv

LIST OF TABLES

S.No

DESCRIPTION

4.1

Delay in Different department(%)

4.2

Delay in Different department

4.3

Production lead time V/S Preproduction lead time

4.4

Statistical Analysis table

4.5

Status of order tracked

4.6

Delay Reasons

4.7

Quality Problems

4.8

Approval Delay

4.9

lab-Dips delay

4.10

Material Procurement

4.11

Specification change reasons

5.1

Controllable V/S uncontrollable

5.2

Bill Value table

5.3

Time and Action plan solid dyed

5.4

Time and Action plan for yarn dyed

PAGE NO

LIST OF FIGURES

S.No

DESCRIPTION

3.1

Types of Demand

4.1

Delay in Different department(%)

4.2

Delay in Different department

4.3

Lead time Analysis

4.4

Delay Reasons

4.5

Approval Delay

4.6

Quality Problems

4.7

lab-Dips delay

4.8

Material Procurement

4.9

Specification change reasons

4.10

Delay expected during order

4.11

Resubmission of samples during an order

4.12

Stages of Resubmission

4.13

Resubmission in Lab-dips

4.14

Resubmission in Proto

4.15

Resubmission in size set

4.16

Resubmission in testing

4.17

Resubmission in pre production

PAGE NO

TIME AND ACTIN REPORT Work Order No Order received Labdips approval plan date Act date Plan duration Act duration deviation MOF released Fabric inhouse plan date Act date Plan duration Act duration deviation PP sample Appr. plan date Act date Plan duration Act duration deviation production Start plan/actual finish plan/actual

G1900460 G1900461 G1900487 G1900492 G1900488 G1900489 G1900490 20.03.10 20.03.10 25.03.10 28.04.10 08.04.10 20.04.10 20.04.10 30.03.10 03.04.10 10 13 3 03.04.10

30.03.10 02.04.10 10 12 2 02.04.10

04.04.10 09.04.10 10 15 5 09.04.10

08.05.10 08.05.10 10 10 0 08.05.10

18.04.10 18.04.10 10 10 0 18.04.10

30.04.10 06.05.10 10 16 6 06.05.10

30.04.10 30.04.10 10 10 0 30.04.10

15.05.10 23.05.10 45 50 5

15.05.10 13.05.10 45 41 -4

09.05.04 25.05.10 35 46 11

03.06.10 03.06.10 35 35 0

03.06.10 12.06.10 45 54 9

30.05.10 06.06.10 30 30 0

14.06.10 13.06.10 45 44 -1

20.05.10 03.05.10 5 10 5

20.05.10 20.05.10 5 7 2

25.05.10 01.06.10 5 6 1

08.06.10 10.08.10 5 7 2

08.06.10 25.06.10 5 13 8

05.06.10 15.06.10 5 9 4

19.06.10 18.06.10 5 5 0

20.05.10 03.06.10

20.05.10 20.05.10

15.05.10 01.06.10

08.06.10 10.06.10

08.06.10 25.06.10

06.06.10 16.06.10

20.06.10 19.06.10

15.06.10 28.06.10

15.06.10 17.06.10

10.06.10 26.06.10

03.07.10 05.07.10

03.07.10 20.07.10

01.07.10 11.07.10

05.07.10 04.07.10

25 25 0

25 25 0

25 25 0

25 25 0

25 25 0

15.06.10 02.07.10 5 5 0 17

08.07.10 10.07.10 5 5 0 2

08.07.10 25.07.10 5 5 0 17

06.07.10 16.07.10 5 5 0 10

10.07.10 16.07.10 5 11 6 6

Plan duration 25 25 Act duration 25 27 deviation 0 2 delivery/shipment plan date 20.06.10 20.06.10 Act date 03.07.10 22.06.10 Plan duration 5 5 Act duration 5 5 Deviation 0 0 Total Delay 13 2 MOF : Manufacturing Order form

TIME AND ACTIN REPORT Work order No

G1900 491

G1900 493

G1900 494

G1900 495

G1900 496

G1900 383

G1900 384

Order received

25.04.10

22.04.10

25.04.10

22.04.10

25.04.10

15.04.10

15.04. 10

plan date

05.05.10

02.05.10

05.05.10

02.05.10

05.05.10

25.04.10

Act date

06.05.10

13.05.10

05.05.10

03.05.10

04.05.10

29.04.10

10 11 1

10 11 1

10 10 0

10 11 1

10 9 -1

10 14 4

06.05.10

13.05.10

05.05.10

03.05.10

04.05.10

29.04.10

plan date

20.06.10

16.06.10

20.06.10

16.06.10

20.06.10

10.06.10

Act date

20.06.10

19.06.10

17.06.10

18.06.10

20.06.10

14.06.10

45 44 0

45 48 3

45 42 -3

45 46 1

45 45 0

45 45 0

plan date

25.06.10

22.06.10

25.06.10

22.06.10

25.06.10

15.06.10

Act date

25.06.10

26.06.10

22.06.10

26.06.10

25.06.10

24.06.10

5 5 0

5 5 0

5 5 0

5 7 2

5 5 0

5 10 5

Start plan/actual

26.06.10 26.06.10

22.06.10 26.06.10

25.06.10 25.06.10

22.06.10 26.06.10

25.06.10 25.06.10

15.06.10 24.06.10

finish plan/actual

20.07.10 20.07.10

17.07.10 21.07.10

20.07.10 24.07.10

17.07.10 21.07.10

20.07.10 26.07.10

10.07.10 19.07.10

25 25 0

25 25 0

25 29 4

25 25 0

25 31 6

25 25 0

Labdips approval

Plan duration Act duration deviation MOF released

25.04. 10 28.04. 10 10 13 3 28.04. 10

Fabric inhouse

Plan duration Act duration deviation PP sample

Plan duration Act duration deviation production

Plan duration Act duration deviation delivery/shipment

10.06. 10 17.06. 10 45 49 4 15.06. 10 22.06. 10 5 5 0 15.06. 10 22.06. 10 10.07. 10 17.07. 10 25 25 0

plan date

25.07.10

22.07.10

25.07.10

22.07.10

25.07.10

15.07.10

Act date

29.07.10

26.07.10

29.07.10

26.07.10

31.07.10

24.07.10

5 5 0 4

5 5 0 4

5 5 0 4

5 5 0 5

5 5 0 9

Plan duration 5 Act duration 9 Deviation 4 Delay 4 MOF : Manufacturing Order form TIME AND ACTIN REPORT Work Order No

G1900386

G1900387

G190052 7

G19005 28

G19005 29

G1900 530 30.04. 20.04.10 25.04.10 10

G1901 183 05.05. 10

Order received

14.04.10

15.04.10

16.04.10

plan date

25.04.10

25.04.10

26.04.10

30.04.10 05.05.10

10.05. 10 13.05. 10 10 13 3 13.05. 10

15.05. 10 17.05. 10 10 12 0 17.05. 10

Act date

23.04.10

24.04.10

30.04.10

30.04.10 05.05.10

10 -8 -2

10 9 -1

10 14 2

23.04.10

24.04.10

30.04.10

30.04.10 05.05.10

plan date

10.06.10

10.06.10

01.06.10

15.06.10 19.06.10

25.06. 10 03.07. 10 45 50 5

30.06. 10 30.06. 10 45 43 -2

Act date

16.06.10

11.06.10

03.06.10

15.06.10 24.06.10

45 53 8

45 46 1

35 37 2

plan date

15.06.10

15.06.10

06.06.10

20.06.10 24.06.10

30.06. 10 11.07. 10 5 8 3

05.07. 10 11.07. 10 5 11 6

Act date

17.06.10

15.06.10

10.06.10

20.06.10 01.07.10

5 7 2

5 5 0

5 5 0

15.06.10 23.06.10

15.06.10 15.06.10

07.06.10 11.06.10

30.06. 10 12.07. 10

05.07. 10 11.07. 10

Labdips approval

Plan duration Act duration deviation MOF released

10 10 0

10 10 0

Fabric inhouse

Plan duration Act duration deviation PP sample Appr.

Plan duration Act duration deviation production Start plan/actual

45 45 0

5 5 0

45 54 5

5 7 2

20.06.10 24.06.10 20.06.10 01.07.10

15.07. 10 22.07. 10 5 5 0 7

finish plan/actual

10.06.10 18.07.10

10.07.10 18.07.10

03.08.10 07.08.10

25 25 0

25 33 8

25 25 0

plan date

15.07.10

15.07.10

08.08.10

20.07.10 24.07.10

Act date

22.07.10

23.07.10

12.08.10

26.07.10 31.07.10

5 5 0 8

5 5 0 4

Plan duration Act duration deviation delivery/shipment

Plan duration 5 Act duration 5 Deviation 0 Total Delay 8 MOF : Manufacturing Order form

15.07.10 19.07.10 21.07.10 26.07.10 25 31 6

5 5 0 6

25 25 0

5 5 0 7

25.07. 10 06.08. 10 25 25 0

30.07. 10 06.08. 10 25 25 0

30.07. 10 11.08. 10 5 5 0 11

04.07. 10 10.07. 10 5 5 0 6

TIME AND ACTIN REPORT Work Order No Order received Labdips approval plan date Act date Plan duration Act duration deviation MOF released Fabric inhouse plan date Act date Plan duration Act duration deviation PP sample Appr. plan date Act date Plan duration Act duration deviation production

G1901184 G1901185 G1901186 G1901187 G1900531 G1901189 G1901190 10.05.10

04.05.10

04.05.10

04.05.10

20.04.10

11.05.10

11.05.10

20.05.10 20.05.10 10 10 0 20.05.10

14.05.10 18.05.10 10 14 4 18.05.10

14.05.10 14.05.10 10 10 0 14.05.10

14.05.10 14.05.10 10 10 0 14.05.10

30.04.10 30.04.10 10 10 0 30.04.10

20.05.10 20.05.10 10 10 0 20.05.10

20.05.10 19.05.10 10 9 -1 19.05.10

04.07.10 01.07.10 45 41 -4

28.06.10 07.07.10 45 50 5

28.06.10 24.06.10 45 41 -4

28.06.10 09.07.10 45 56 11

05.07.10 09.07.10 65 69 4

05.07.10 07.07.10 45 47 2

05.07.10 04.07.10 45 45 0

09.07.10 05.07.10 5 5 0

03.07.10 15.07.10 5 8 3

02.07.10 29.06.10 5 5 0

03.07.10 17.07.10 5 8 3

10.07.10 16.07.10 5 7 2

10.07.10 14.07.10 5 7 2

10.07.10 10.07.10 5 6 1

Start plan/actual

10.07.10 06.07.10

04.07.10 15.07.10

03.07.10 30.07.10

04.07.10 17.07.10

11.07.10 17.07.10

11.07.10 15.07.10

10.07.10 10.07.10

finish plan/actual

04.08.10 06.08.10

29.07.10 10.08.10

28.07.10 30.08.10

29.07.10 11.08.10

06.08.10 12.08.10

06.08.10 10.07.10

04.08.10 09.09.10

25 30 5

25 25 0

25 25 0

25 25 0

25 30 5

02.08.10 04.08.10 5 5 0 2

03.08.10 16.08.10 5 5 0 14

10.08.10 16.08.10 5 5 0 6

10.08.10 15.08.10 5 5 0 4

09.08.10 14.08.10 5 5 0 5

Plan duration 25 25 Act duration 31 25 deviation 6 0 delivery/shipment plan date 09.08.10 03.08.10 Act date 11.08.10 15.08.10 Plan duration 5 5 Act duration 5 5 Deviation 0 0 Total Delay 2 12 MOF : Manufacturing Order form

TIME AND ACTIN REPORT Work Order No Order received Labdips approval plan date Act date Plan duration Act duration deviation MOF released Fabric inhouse plan date Act date Plan duration Act duration deviation PP sample Appr. plan date Act date Plan duration Act duration deviation

G1901191 G1901192 G1900542 G1900543 G1900544 G1900554 G1900555 12.05.10

10.06.10

09.04.10

15.04.10

18.04.10

20.04.10

22.04.10

22.05.10 25.05.10 10 13 3 25.05.10

20.06.10 22.06.10 10 12 2 22.06.10

19.04.10 23.04.10 10 14 4 23.04.10

25.04.10 25.04.10 10 10 0 25.04.10

28.04.10 03.05.10 10 15 5 03.05.10

30.04.10 30.04.10 10 10 0 30.04.10

02.05.10 08.05.10 10 16 6 08.05.10

06.07.10 06.07.10 45 45 0

04.07.10 09.07.10 15 18 3

14.06.10 24.06.10 55 61 6

10.06.10 09.06.10 45 44 -1

13.06.10 22.06.10 45 49 4

15.06.10 25.06.10 45 55 10

16.06.10 30.06.10 45 54 9

11.07.10 17.07.10 5 8 3

09.07.10 16.07.10 5 6 1

19.06.10 03.07.10 5 9 4

15.06.10 15.06.10 5 6 1

18.06.10 27.06.10 5 5 0

20.06.10 05.07.10 5 10 5

21.06.10 05.07.10 5 5 0

production Start plan/actual

11.07.10 17.07.10

10.07.10 17.07.10

20.06.10 04.07.10

15.06.10 15.06.10

18.06.10 27.06.10

20.06.10 05.07.10

22.06.10 06.07.10

finish plan/actual

07.08.10 13.08.10

05.08.10 12.08.10

14.07.10 28.07.10

10.07.10 10.07.10

13.07.10 22.07.10

15.07.10 30.07.10

17.07.10 01.08.10

25 25 0

25 25 0

25 25 0

25 25 0

25 25 0

19.07.10 02.08.10 5 5 0 14

15.07.10 19.07.10 5 9 4 4

18.07.10 27.07.10 5 5 0 9

20.07.10 04.08.10 5 5 0 15

22.07.10 06.08.10 5 5 0 5

Plan duration 25 25 Act duration 25 25 deviation 0 0 delivery/shipment plan date 12.08.10 10.08.10 Act date 18.08.10 16.08.10 Plan duration 5 5 Act duration 5 5 Deviation 0 0 Total Delay 6 6 MOF : Manufacturing Order form