A study on Causes for Delays in Pre-Production Activities of

Garment manufacturing at Imperial Garments Limited, Hyderabad.

A PROJECT REPORT Submitted by U.RADHAKRISHNA 09TM11

In partial fulfillment of the requirements of SVPISTM for The award of Post Graduate Diploma in Management (Textiles). Under the guidance of Dr. S.Usha, MBA, Ph.D

SARDAR VALLABHAI PATEL INTERNATIONAL SCHOOL OF TEXTILES & MANAGEMENT (A National level Autonomous Institution under the Ministry of Textiles, Govt. of India) COIMBATORE - 641004

CERTIFICATE
This is to certify that the project work titled A study on causes for Delays in

PreProduction activities of Garment manufacturing at Imperial Garments Limited, Hyderabad. is a bonafide work done by
Management (Textiles) RADHAKRISHNA UPPALAPATI, 09TM11 for the award of Diploma of Post Graduate Diploma in

Faculty guide Program Coordinator

Director Submitted for the Viva-Voce examination held on

(Signature of Internal Examiner with date)

(signature of External Examiner with date)

ACKNOWLEDGEMENT

First and foremost I thank God almighty for the successful completion of my project. I would like to extend my special thanks to Prof. S.R.Pujar, Director of the Sardar Vallabhbhai Patel International School of Textiles And Management, for the moral support and providing all facilities for the completion of the project. My faculty guide, Prof. Dr.S.Usha had been pivotal for the successful completion of the Project by guiding me throughout the entire phase. I would like to extend my gratitude to her for rendering all the support I needed throughout my project. I also thank all the other faculty members, for their guidance and support and advice during the project. I am extremely obliged to Imperial Garments Limited for providing me the opportunity that was filled with a lot of experience and learning. Besides gaining exposure from my project, I also got a tremendous insight into the world of textiles and other related aspects. I am thankful to Mr.Surendra .C. Trivedhi, AGM (Fabric Sourcing) for providing me guidance about the industry. The other members of fabric sourcing team, and sampling department teams at IGL were also very cooperative in providing the necessary information for my project.

U.Radhakrishna

CONTENTS

S. No

DESCRIPTION

PAGE NO

Acknowledgement List of Tables List of Figures & List of Appendices Executive Summery 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8

INTRODUCTION
Background Objectives Need for the study Scope of the study Limitations Expected Benefits Hypothesis Company Profile RESEARCH METHODOLOGY 2.1 Research Process 2.2 Research flow chart THEORY OVER VIEW 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 Introduction Operations in Apparel Manufacturing Delay Lead time and timely deliveries Reasons for delays Order management Critical chain approach Business process review Role of merchandiser in Pre production ANALYSIS AND INTERPRETATION Data collection SWOT analysis Order Tracking Delays in different Departments Lead time v/s production& Preproduction times Delay Reasons Approval Delays Quality Problems Lab-dips Material Procurement Changes specification

2.0
3.0

i iii iv vi 1 1 2 2 3 3 4 4 5 7 7 10 13 13 14 17 18 20 20 23 27 28 31 31 32 33 35 38 43 45 48 50 52 54

4.0 4.1 4.2 4.3 4.4 4.4 4.5 4.5.1 4.5.2 4.5.3 4.5.4 4.5.5

5.0
5.1 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.3 5.4

FINDINGS, RECOMMENDATIONS AND CONCLUSIONS

Identification controllable and non controllable delays Developing action plan Embroidery and Print Delay Material Shortage Internal Communication External Communication Changes in bulk Incomplete submission Established the standard time and action for preproduction activities Conclusions Future Prospect of the Project References Bibliography

61 61 61 61 61 62 62 63 63 64 65 67 69 70

LIST OF TABLE
S. No
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 5.1 5.2

DESCRIPTION
Delay in Different departments as percentage Delay in Different department Production lead time V/S Preproduction lead time Statistical Analysis table Status of order tracked Delay Reasons Approval delays Quality Problems lab-Dips delay Material Procurement Specification change reasons Controllable V/S uncontrollable

PAGE NO
35 36 37 39 42 44 45 48 50 53 55 59 64 65 67

Time and Action plan solid dyed

Time and Action plan for yarn dyed Bill value

5.3
5.4

LIST OF FIGURES
S. No
3.1 4.1 4.2 4.3

DESCRIPTION
Types of Demand Delay in Different departments as percentage Delay in Different department Lead time Analysis

PAGE NO
19 35 38 41

4.4 4.5 4.6 4.7 4.8 4.9 4.10

Delay Reasons Approval Delay Quality Problems lab-Dips delay Material Procurement Specification change reasons Summarization of delays

44 46 48 50 53 55 57

LIST OF APPENDICES S. No
1 2 3 4 5 6

DESCRIPTION
Time and Action Reports (Before) Time and Action Reports (After) Knitting capacity Capacity of Yarn Processing unit of GTN Capacity of Fabric processing unit Yarn Prices for 6 months

PAGE NO
71 76 77 78 79 80

Executive Summary

Growing demand for new product by

customers leads to reduction in

product lead time drastically. 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. This project work was done at Imperial Garments Limited, Hyderabad which involved in Manufacture of knit ware products.

The main objective of the research is to analyze the entire process flow of orders in preproduction and identify reason for delays. The research work consists of tracking of particular orders through the entire set of activities in preproduction and study deviation of the current status and expected status. Then the causes for delays were studied, analyzed and best solutions proposed. As per data collection 68% Of Delay was happening in pre-production. For orders tracked in 62.5% of cases it is the Material Procurement that is Contributing to delay and second largest contributor is Approval delay which Account for 58%. The delay is further identified as controllable and uncontrollable and measures are suggested for the controllable delays Action plan developed for each process for eliminating the factors causing delays. 51% increase in on time delivery rate if above delays can be controlled. 35,51,750 Rs could be saved as part of discount for 24 orders in two months can be used for other purpose. New detailed time and action plan has been developed for all preproduction activities with the consent of all concerned people. It helps to standardize the process and for better control over the process.

After implementing the proposed action plan in 6 running orders, the reduction observed in approval delay is 60% , in Material Procurement delay it is 30% and in delay due to Specification changes by 30%. Hence increasing the chances of on time delivery and money saved as discount can be saved for upgrading and new technology.

CHAPTER I INTRODUCTION
1.1 Background
Evolving consumer preferences whose awareness levels of trends, fashion consciousness, disposable income and consumerism is at all time high. This much consumer awareness demand different merchandise at even shorter intervals complimented with greater shopping experiences, which is inducing product lifecycles to

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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 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, makes 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 orders, more profit and good image 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.

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3. Providing probable solutions for the delays in Preproduction. 4. To understand cost implication of delays

Secondary Objectives:

1. To understanding concept and dynamics of delay in Pre-production. 2. To understand the various aspects in Apparel manufacturing which cause delays in pre-production activities.

1.2 Need for the study: 1. It is observed that the said company is not fully exploiting its resources as a vertically integrated company for reducing the lead time to get a competitive advantage.
2. Shrinkage in product life cycles demanding shorter lead times. 3. Garment preproduction activities demands 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: Study helps us to get a view of process flow of product at pre -production and framework for set of activities required for eliminating the delay elements. Generally the orders work on smaller runs. The project is beneficial for company by helping them to execute order with smaller runs and frequent varying style. Controlling the delay would

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enable company to reduce major amount of deviation from scheduled lead time and meet the delivery date. Hence it helps in making company proactive in approach to foresee kind of delivery schedule and can get insight of delays. Orders, executed in the period of Apr10-Jul10, were selected for research in Imperial Garments Limited.

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 main unit.

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.

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4. Beneficial to the companies trying to execute orders with smaller runs with frequently varying styles.

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

1. 8 IMPERIAL GARMENTS LIMITED

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.

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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. Imperial Garments Limited is equipped 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, Sportswear.

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 has been completed has following departments: Fabric Sourcing, Production, Sampling, Quality, Finance & Accounting, Marketing and Human Resource Department. Printing and Embroidery.

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Process flow of the 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:

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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

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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, 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. For this research, Descriptive research is adopted.

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 without influencing them. The Descriptive research focuses on the factors, which help to understand the various causes for delays in related activities.

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Research Instruments:
In this research, tracking of orders along various activities and informal enquiries have been used to understand the reasons and come to conclusions.

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

Step III: Collect the information

Information was collected from the various people involved in production over a period of time. Information 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 simple tools such as standard deviations and measures of central tendency. 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

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 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

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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 there is any difference between each pair of scores, add those differences and divide it by the number of pairs of scores. Then 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 scores, the greater the average difference and the more likely that the null hypothesis will be rejected.

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

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Xd= D/ N Where Xd is the mean of the differences D is the summation of the d column Formula 1.2 Sd=D-(D)/N/N Where Sd is the standard deviation of the differences D is the summation of the difference (D) column D is the summation of the D 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

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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

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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 clients specifications and create sample garments for final approval and pre production. If a prototype of a new design is needed. then Product

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Development Department will work as an advisor with the clients 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

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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.

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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

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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.

3.4 LEAD 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

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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.

Figure: 3.1 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

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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 inventoryat the supplier, in transit or at warehousealong with real-time aggregated order reporting. In todays scenario company should always know what they need and what they have.

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Distributed Order Management simplifies fulfillment process by orchestrating the following points to be considered: i) Aggregating and prioritizing orders: This includes 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

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(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

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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 hubssuch as customer, product, and supplieris 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:

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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.

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.

Task estimating

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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. 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

35

depended 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 individuals 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

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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

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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 its 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 buyers 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

38

activities are handled personally or with the support of junior merchandisers/subordinates. 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 non- conformation, 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.

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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

40

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 are the main reasons that were responsible for the delays in preproduction activities during an order execution. These are not the sole reasons responsible for the delay, but if these are reduced, it will helps in overall reduction in delays.

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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

4.2 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 belonging to GTN industries. Fully trained manpower Fully equipped with modern machinery Efficient supply chain

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WEAKNESSES Small orders Low coordination between departments Too much decentralized departments No Designing Studio No marketing research OPPORTUNITIES Able to attract new customers Expansion of business More domestic demand especially in Hyderabad. THREATS Low profit margins Reduced lead times Frequently changing styles Switching of buyers

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 High quality demands

4.3 Order Tracking

As part of data collection, 35 delayed orders were studied for two months that is Jun10 and Jul10. It included both the historical data from records for the orders being shipped and tracking of the running styles. In order to find delays and reasons for delays, the order tracking was done and during tracking of the orders 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 orders involves the extensive study of procedures followed 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 were tracked as per this department only. The tracking included the actual order follow up and also the reference of the record which is being kept in the 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.

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4.4 Delay in different department

It was found that Out of 35 orders, there are 24 orders got delayed primarily in Pre-Production stage. Table : 4.1

Department
Pre-Production Production Post Production Total Figure : 4.1

No of orders delayed
24 8 3 24 Department wise Delay status

% contribution in delay
68% 26% 6% 100%

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It is observed that preproduction activities are more prone to delays in garment manufacturing.

Table: 4.2 Stage wise Delay analysis

46

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 25 26 27 28 29 30 31 32 33 34 35

Work order No
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

Delay
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

Table:4.3 Preproduction & production durations

S.No Work No order Color Total Lead Preproduction production %time prein

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Time 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 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 60 50 60 45 50 60 60 60 60 55 50 60 60 60 60 60 80 60 60 30 70 60 60 60 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30

production 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

4.4 LEAD TIME V/S PRE PRODUCTION AND PRODUCTION DURATIONS

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In 24 orders, delay was observed in pre production and in further detailed analysis it was found that 65.5% of time was involved in the preproduction of these orders.

Graphical interpretation of lead time v/s Preproduction and production durations Figure No:4.2

TABLE : 4.4 STATISTICAL ANALYSIS TABLE

49

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 order No G1900460 G1900487 G1900488 G1900489 G1900492 G1900493 G1900495 G1900383 G1900384 G1900386 G1900527 G1900529 G1900530 G1901183 G1901185 G1901187 G1901188 G1901189 G1901191 G1901192 G1900542 G1900544 G1900554 G1900555

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 Sum

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 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

d2 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 actual lead time : 97.1 Mean Planned lead time : 87.9 Null hypothesis: Ho: d=0 ; Alternate hypothesis (H1:d0) Degrees of freedom = N-1=24-1=23 t(critical) t(obtained) = 2.069 = 4.44

Interpretation:

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The test statistic is in the critical region so the null hypothesis can be rejected. The difference in prejudice scores from the plan days and actual days is statistically significant. Actual lead times are deviating from planned lead time significantly.

Figure: 4.3 GRAPHICAL ANALYSIS OF LEAD TIME

140 Number of days 120 100 80 60 40 20 0 1 3 5 7 9 11131517192123 Production Order

Planned lead tim e Actual lead tim e

It can be understood 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.

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FISHBONE DIAGRAM
Man Management Improper financial dealings with suppliers Less Freedom to Managers DELAYS Poor design of Supply Chain Improper Lab dips Priorities Lack of Flexibility Material Method Machine Quality problems Internal communication Incomplete submission

More bargaining

External communication

Table: 4.5

STATUS OF ORDER TRACKED

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

Work order No
G1900460 G1900487 G1900488 G1900489 G1900492 G1900493 G1900495 G1900383 G1900384 G1900386 G1900527 G1900529 G1900530 G1901183 G1901185 G1901187 G1901188 G1901189 G1901191 G1901192 G1900542

Fabric In-house Expected

20/06/2010 8/7/2010 8/7/2010 20/07/2010 28/07/2010 22/07/2010 22/07/2010 15/07/2010 15/07/2010 14/07/2010 16/07/2010 25/07/2010 30/07/2010 4/8/2010 4/8/2010 4/8/2010 10/8/2010 11/8/2010 12/8/2010 10/8/2010 19/07/2010

Fabric In-house Actual

3/7/2010 25/07/2010 25/7/2010 30/07/2010 30/07/2010 26/07/2010 26/07/2010 24/07/2010 22/07/2010 22/07/2010 20/07/2010 1/8/2010 10/8/2010 10/8/2010 16/08/2010 18/08/2010 16/08/2010 15/08/2010 18/08/2010 16/08/2010 2/8/2010

Total delay
13 days 17 days 17 days 10days 2 days 4 days 4 days 9 days 7 days 8 days 4 days 7 days 11 days 6 days 12 days 14 days 6 days 4 days 6 days 6 days 14 days

Reason
Material procurement, Approval delay, Quality problems Quality problems, Lab dip, Approval Delay Spec. change, Material Procurement Approval delay, Lap Dip Quality problems, Specs Change Approval delay, Material Procurement Lap dip, Material procurement, Quality problems Specs change , Approval delay Material procurement, lab dips Specs change, Quality problems, Approval Delay Material procurement, Lap Dip Quality problems, Approval delay, Specs change. Lap Dip, Approval Delay, Material procurement Specs change, Approval delay Lab dip, Material Procurement, Specs Change Quality problems, Material Procurement, Specs Change Quality problems, Approval delay Material Procurement, Approval Delay Approval delay, Specs Change Material Procurement, Lap Dip, Specs Change Material procurement, Quality problems, Approval Delay

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22 23 24

G1900544 G1900554 G1900555

18/7/2010 20/07/2010 22/07/2010

27/07/2010 4/8/2010 6/8/2010

9 days 15 days 15 days

Approval delay, Quality problems, Lab dip Material procurement, Quality problems, Approval Delay Lab dips, Material Procurement

4.5 DELAY REASONS Tracking of the orders includes both Historical data and running and shipped orders during the project period.

The following main reasons are summarized Change of Specifications Fabric quality Lab-dip and bulk approval Material procurement Approval delays

Table:4.6

Broad classification of reasons for delays

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S. No 1 2 3 4

Reasons Material procurement Lab dip Specification Changes Approval delays

Cases Recorded 15 11 8 14

As a Percentage of total cases 62.5 45.8 33.3 58.3

5 Quality Problems 11 45.8 (The reasons for the delay are not independent, within one case the reasons for delay be multiple. Percentage were calculated = No of cases a particular Reason repeated/Total no. of cases*100) Figure 4.4

Observed delay reasons

16 14 12 No of Cases 10 8 6 4 2 0
Material procurement Lab dip Specification Changes Approval delays Quality Problems

15 11 8

14 11

Reasons

Interpretation: 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

55

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 Table No: 4.7

Approval delays
No.of cases 3 4 3 6 as a Percentage 21.4 28.6 21.4 42.9

S.No 1 2 3 4

Reasons Priorities Changes During bulk production Rejections Incomplete Details

(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)

Figure: 4.5

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Approval delays
7 6 No of cases 5 4 3 2 1 0 Priorities Changes During bulk production Rejections Incomplete Details 3 4 3 6

Reasons

Detailed description individual reasons: 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 elements and other changes that are being done by the sampling team after the sample is being made. Sometimes they do not like the material or printing technique or any other stylization and hence they want to

57

Change it at final time. This 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 as follows 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 causes 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.

Incomplete submission: This was the one of the reasons 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.

4.5.2Quality related problems:

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Following are the frequently observed quality problems in the company that were caused delays. Table: 4.8 Classification of Quality problems
As a Percentage of total cases 18.2 27.3 45.5 9.1

S. No

Reasons

Cases Recorded

1 2 3 4

Fabric GSM variation Barre/Patta problem shade variation in bulk Spirality

2 3 5 1

(The reasons for the delay are not independent, within one case the reason for delay be multiple Percentage were calculated = Reason for delay / Total no of cases *100) Figure: 4.6

Quality Related Problems

6 5 No.of cases 4 3 2 1 0 Fabric GSM variation Barre/Patta problem shade variation in bulk Spirality 2 3 1 5

Reasons

The main quality problems that are responsible for delays are Fabric GSM

59

(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 color development from samples approved. Sometimes 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. 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. Table no: 4.9 Classifications reasons for delay in labdips
S. No 1 2 3 4 Reasons Internal Communication Lapse External Communication Lapse Not desired shade Changes during bulk production No. of cases 4 3 4 2 as a Percentage 36.4 27.3 36.4 18.2

(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) Figure: 4.7

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Delay in Labdips
5 No of cases 4 3 2 1 0 Internal Communication Lapse External Communication Lapse Not desired shade Changes during bulk production 4 3 2 4

Reasons

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. This might happen due to number of reasons:1) Miscommunication between supplier and the company: Some changes 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 interims of quantity and time 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

61

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.

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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. Poor material procurement planning is responsible for delays. Material procurement includes 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.

Table:4.10 Delays in material procurement

No.of cases 4 5 4 2 as a Percentage 26.7 33.3 26.7 13.3

S.no 1 2 3 4

Reasons Resource unavailability Priorities Material shortage Fluctuation in Yarn prices

(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)

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Figure: 4.8

Material Procurement
6 5 No of cases 4 3 2 1 0 Resource unavailability Priorities Material shortage Reasons Fluctuation in Yarn prices 2 4 5 4

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

64

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 CHANGES IN SPECIFICATIONS In 33.3% of cases, major reason for delay was the frequent changes in the specifications and instructions. It was found that primarily there were changes in specifications and instructions because there was no standard procedures established for inter unit cooperation.

Table: 4.11 Delays due specification changes:

S. No 1 2 3 4 Reasons Internal Communication Lapse External Communication Lapse Lack of standardization Changes during bulk production No. of cases 3 2 2 3 as a Percentage 37.5 25.0 25.0 37.5

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

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Figure : 4.9 Graphical interpretation

Delay due to Specifacations change
4 3 No of cases 3 2 2 1 0 Internal Communication Lapse External Communication Lapse Lack of stadardization Changes during bulk production 2 3

Reasons

There are times when the merchandisers sent the sample on old specification instead of updating new specifications while dealing with suppliers. Sometimes changed specifications 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. These specification changes are the major contributor to the delay in pre-production of particular style. For example, location of logos and pocket positions etc.

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4.5.6 Summarization of the Delay Reasons:

11

15 DELAY

Material procurement Lab dip Specification Changes Approval delays Quality Problems

14 11 8 Fig No: 4.10 Factors for each reason:

Material Procurement Resource unavailability Priorities Material shortage Priorities

Lab-dips Internal communication lapse External communication lapse Changes in bulk Production Lack of standardization

Approval Delays Priorities Changes in Bulk Rejections Incomplete submissions

Changes in Specification Internal communication lapse

Quality Problems Fabric GSM variation

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External communication lapse hanges i n bulk Production Lack of standardization

Barre/Patta Shade variation Spirality

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.

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Table: 5.1 Opinions of 12 Merchandisers regarding delay factors

Reasons Resource unavailability Print delay Material shortage Priorities Not desired Shade Internal communication External communication Change by 1 2 3 4 nc nc nc nc c c nc c c c c c 5 nc c c nc nc c c c 6 nc nc c nc nc c c c 7 nc c c nc nc c c c 8 nc c c nc nc c c c 9 nc c c nc nc c c c nc c c 10 nc nc c nc nc c c c nc c c 11 nc c c nc nc c nc c nc c c 12 nc c c nc nc c c c nc c c

nc nc nc Nc nc nc nc Nc c c c c c c c c c c c c

product Rejections nc nc nc nc nc nc nc nc Multitasking c c c nc c c c c Poor Quality c c c c c c c c 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:-

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Controllable Embroidery delay Print delay Material shortage Internal communication External communication Quality problems Changes by bulk production Incomplete Submission Lack of standardization

Uncontrollable Resource unavailability Priorities Unable to achieve desired shade Rejections

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.

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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 order quantity and time of delivery Proper planned quantity should be ordered and it requires correct calculation of quantities required based on order and after considering reasonable waste 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

Transparency to be maintained among different teams by information sharing. 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.

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 Before starting 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.

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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 Table : 5.2 Solid Fabric Delivery schedule of the solid dyed fabric. Normal solid dyed

Mercerized

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sales man Days lab dips approvals yarn sourcing fabric knitting Processing Total if loose knit tip total with loose knit if Tirupur transportation Over all total 3 to 5 days 5 2 7 14 2 16 4 20

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

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

bulk days 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 mlange 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.

Table : 5.3 Yarn Dyed Fabric

Delivery schedule of the yarn dyed fabric.

Normal soft yarn dyed sales man days Bulk Days

Gassed & Merc. dyed yarn salesman Bulk Days days

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lab dips approvals

yarn sourcing

15

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

10 4 Inclusive Transit to & fro 35 20 Inclusive Transit time 7 2

35

4 56 4

4 30 4

5 49 4

Over all total 28 60 34 53 Notes: *Above schedule is effective after confirmation of 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 mlange 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.

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5.3 CONCLUSION

A penny saved is a penny earned. The delay reduction and Control measures suggested herein when implemented will result in saving huge sums of money that manufacturers discount against delayed orders and will also increase on time delivery rate. The Senior Merchandisers, Merchandiser and Product & Quality team were asked to categorize the cause of delays into controllable and uncontrollable delays and develop systematic procedures for better process control.

If the above measures would have been used for 24 delayed orders, estimated savings would be as follows:

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.

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Table : 5.4 shows total bill value of 18 orders in which delay could be controllable. 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 15000 20000 25000 10000 5500 10000 12000 25000 8500 10000 20000 10000 20000 15000 17000 35000 20000 15000 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% Price 290 210 190 299 350 305 325 198 320 255 199 250 210 320 210 220 250 260 Total Bill 4350000 4200000 4750000 2990000 1925000 3050000 3900000 4950000 2720000 2550000 3980000 2500000 4200000 4800000 3570000 7700000 5000000 3900000 71035000

5.4 Future Prospect of the Project

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A project when completed, lays the foundation for another Research study, for nothing is ever perfect. The scope and limitations 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

Suggested measure implemented

Suggested Measure considered for implementation

Advance planning and Made arrangements for Sufficient yarn stock of regular counts -----

Percentage reduction in delay

Material Procurement

Resource unavailability Material shortage Priorities

In advance capacity planning and having supplier control

30%

Lab dip

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

Meeting and training of suppliers Frequent meeting sessions should be arranged with middle level people to discuss capacity planning, shades matching etc

29%

Approval

Priorities Change by

Set up the required timeline for approval of

41%

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process team Rejections Incomplete submissions

samples at various stages. Set up the procedure & accountability for approval Set up the clear instructions to vendors for sample package being sent to the office for approval

Change in Specification

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 time for complete style finalization before order booking by merchandiser

Setting up of accountability for last minute changes by team

30%

Quality Problems

Priorities for selected suppliers Unplanned Purchases

Selection of right supplier based on performance alone. Advanced planning for right product

20%

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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/article.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/apparelvariants1.asp

supply-chain-and-its-

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

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

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

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Sunil

Chopra,

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Management,2004,3 rd

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