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Volt issue 1 January 2007 Head Offew JUKICerporaion 6.21, KokuryoCho. Chola, Tokyo 182-8665, Janan TEL: 81-2.480 2057 FAX: 481-9.8490.4009 2 For future garment production 207 fn improved vrkig envionmentond bunanresuredevelopment: 2) Bsc knowedge abou helocstth mechne the vo pilersocrperte management. Bosc knowledge lo he prs fo, ed deg, ‘Our moto: Yesterday, tdey onerrew, improvement, and throat plate improvement, improvement.” Ae iT Pe NGS HUONG HOUSE. Ta) wares Inersva: Nestle Mist, Gener! Maege, JUCHINN Ce, Ud. tint speed semi-cy head, 2-needle overlock machine Feature sory: Handing down skls ino dating factory ea oe a 4 CONAN PROFILE OF JUKI BANGLADESH TD. “Plant Streamlining” Series Correspondent report India(Joipur) {Introducing machines with automatic thread trimmers: How to do it and the benefits gained (Actual Achievements) ‘ An improved working environment and human resource Our motto: “Yesterday, today, tomorrow; improvement, Asmall company launched by a school teacher to raise funds hos grown into a mojor company group. Today this group sls three brands for ladies clothing, men’s clothing ond student's clothing, with 60 milion dollars in annual sales. ‘Among the taxpayers of the city of Suzhou, it ranks Ho. 22 in terms of the amount of fax paid. Their group motto is “Yesterday, today, tomorrow; improvement, improvement, improvement.” We had an opportunity to interview their President, Mr. Zh SU WUZHONG INDUSTRY CO., LTD. A) Co., Ltd. Mr. Wei yi Zhao: President, JIA Interviewer: Naotake Miyashita, General Manager, JUKI (CE Corporate management and edacetors live by @ improvement.” Is that your company commen prinipla: “alway: strive te inp motto? Zhao Yes. The JIANGSU WUZHONG Miyashita As wedrove in, we noticed Group started in 1988 asthe “Wuzong These reassigned teucks the characters posted on the walls or your Handicraft Clothing Factory.” When the company. The company mani plant: “Yesterday. today, tomorrow: first reforms and liberalizations were _consisied exclusively of school principals improvement, improvement, underway, funds for education were andeachens, 2 jm 207 v1 development: the two pillars of corporate management. improvement, improvement.” Miyashita A factory ran by teachers? “That sounds unique. Zhao {twas First we hanced silk, After that, in 1993, we made a new start as an ‘expor apparel manufacturer with capital of 500,000 RMB. Because it was a new field, we had to learn and improve, That's why ‘we came up with that mott, iyashita Wasn't it cifficult to make the switch from a teacher to a corporate manager? Zhao In the early days 1 wasn’ sccepted by the industry, In retrospect, see now that teachers were ignorant of the rales of society. We had all been living in small closed world. But once I sturted to manage the ‘company, my special knowledge helped me smoothly enter society. Plas, I was eapable of quickly acquiring knowledge and experience in my new field, So it didn’t take along time to learn about management. Miyashita ‘That's impressive. Maybe you ‘can credit that to your flexible thinking. Zhao I'mnot sure, But after trying ‘company management, I noticed that the job bad many things in common with teaching. Teachers develop hum: resources, while companies provide good products to consumers and make profit and pay tax. These are different, but both are contributions to the development of society. Companies have important responsibilities in society. They have 10 protect the interests of their shareholders, train employees, guarantee salaries, and sim for further development Miyashita 1 see. That's the type of thinking you express in your company sovto, Tunderstand very wel welt ital public offering ofthe company stock ia 19. “Ordinary Edvetion ist Stock For China” Miyashita after that, your small company grew to become the Wuzhong Group, a major enterprise, What businesses are still growing? Zhao Manufacturing of products such as ‘apparel and pharmaceuticals are our main businesses. We are also in real estate, infrastructure construction, educational investment, travel, public utilities forthe city government, and the sale and repair of automobiles. We have 2,500 group ‘employees and rank No. 22 in the city of Suzhow in terms of the amount of tax we Puy, Miyashita understand that your stock is listed in the Shanghai stock exchange. Have any other teacher-launched companies been listed on the stock exchange? Zhao The stock of JIANGSU WUZHONG INDUSTRY CO.,LTD. was listed in 1999. In those days we were praised as “Ondinary Education First Stock For China, Miyashita What's the position of the apparel business in the Wazhong Group? Zhao The apparel business isan important business for our group. We invested 150 million RMB and completed a new plant in February 2005, A complete brand process, from planning and designing to.cutting, sewing, and finishing, is being undertaken. Most af the products are exported to the US and Europe, The export amount is 43 nillion dollars, or about 90% of our total sales, From manvfactring ond soles to brand cretion ‘Three brands for nationwide sine Miyashita Given that you mostly export, youare probably handling mostly higher grade products. We would he vety happy to support your production of high-quality products, By the way, I learned that you are doing very well with your owa brand products, Prease give details, Zhao Yes, we have ovr own brands for the domestic market. We now have brands in three market segments: ladies wear, ‘menswear, and students’ wesr.’The brand for ladies is “Barbara”; for men i's “DiDierTRENOY”: for students, it’s 365. ‘Barbara’ was awarded the “Best Design ‘Champion® at the Beijing International Fashion Show in 2002. It has besa rated as “best-selling ladies brand in China” since 2002 ‘This is the result of training capable designers and establishing a research and development institute for design in ‘cooperation with the Suzhou University. Miyashita Congratulations. | understand thatthe brard for men is being designed in France Zhao Yes. Weare also expecting alot in this business. Miyashita As for the other brand, “365” for students, | understand that the brand covers not ealy student uniforms but also 3 wide range of clothing, including sportswear, for youths of all ages, from primary sshoo! kids towniversity students, Zhao "305" is a brand we have developed over the last eight years. Ithas been selected as the “designer best 10" in 2007 Vol.1 j= 3 Chinese fashion and is now recogrized as a top brand in JIANGSU Province. Tn addition to students’ uniforms, we are making almost all kinds of clothing that kids need--sweatshirts, ordinary shiets, Jackets, and overcoats. The "365" brand has also grown to be the largest brand in the field of schoo! uniforms, With those three brands as our core businesses, our domestic sles has reached about 40 million RMB. In the national ‘market, t's sill only a small to mid-size brand. We plan to promote these brands more aggressively hencefonh, ‘Sewing machines or oll JUKI, (i Stain provonion by the MO-67140, Miyashita Do you allocate production for ‘your brands at separate plants? Zhao. We have four plants, currently, but we aren't separating them by brand Collectively they have about 24,000 square ‘meters of floor space, The materials used are half cloth and half knit. About half of the floor space, 12,000 square meters, is used for sewing lines: about 14 lines for ‘loth and 12 lines for kn ‘We employ 1,800 people in our apparel business. About 1,600 of them work on the lines. We have 2,000 sewing machines, all produced by JUKL Miyashita Thank you very much. Recently you introduced the semi-dry type MO-6714D model for overlock sewing, How do you like it? Zhao We have no complaints with JUKT sewing machines in terms of quality or after-sale service, The MO-6714D, the new machine. is excellent. Staining f leakage is unacceptable fr the hi knit products we produce for export MET 4 jmerwn markels, The MO-6714D is incapable of leaking ol, Needless wo say, this improves both product quality and production efficiency. So it's a big help for he cost reduction Miyashita As Tunderstand, you renewed ‘your production equipment ia 2005. This ‘model was introduced then, wasa’t ie? Zhao Yes. it was. About 80% of our Sewing machines we have now are replacements installed during 2005 when the new plant was completed. Thanks to those new sewing machines, our monthly ‘output of the new plant is approximately {650,000 pieces. That's an approximately 20% improvement of productivity ‘compared to our previous plan (Our largest asset is or capable workfore Envienmestal improvement ond human resource Aevelopnet ere the to ilar of oer corporate rmonagenert. Miyashita Now that "ve heard about your company I can see that you live upto motto, “Yesterday. today, tomorrow improvement, improvement, improvement.” The experience of your top brass as for contributed a great deal to company management Zhao As Tszid earlier, there are commonalities between school teaching and company management—common principles that we live by. When I became involved in company management, I saw that human resources was the main asset educators must have for this company. Experiences from cally bn in management taught me the extreme mportance of developing human resources. My conclusions probably have much to {do with my origins as a teacher. (BENS Gime Sree fScrinen wy moog oo We improve facilities facility for employees to provide a better work environment in which to work. We also provide support to help employees develop vidual skill a the levels they require. Those efforts will eventually pay off by improving our strengths s company. I'm ‘coming 1 see this. Miyashita I'see. In the same vein, 1 noticed that your employees ere very well mannered, both in speech and in conduct. f hope that doesn’t sound presumptuous Zhao Notatall. I'm very glad to hear that. Thank you very much, We give {guidance to our employees everyday atthe ‘morning mesting. We also instruct them in sewing techniques, engineering, quality, safety, and maragernent two or three times a month. And we provide shelves for newspapers oF books in the work shop, hot water baths in the dormitories, and movie showings on weekends. We try w provide our employees more opportunities to improve themselves, Probably these efforts are working, Thanks to these efforts, it’s probably time for JIANGSU WUZHONG CLOTHING CO., LTD. to be listed on the stock exchange. That's my feeling. Miyashita Isee. Ihope that happens soon, Thank you very much for the very instructive information, Ine pe POSH WODIONG CLOTS CO, UD nz oz BE atotme Coe an urgent issue for any knit factor Machines can be used for many years and improve productivity. JUK| machines are economical. The kit business receives big order than othe intodecto of JUN mecins. ‘The company started knit business in 1999, They started with only 150 people “We started to receive sizable orders and production output started to grow in 2002 oF 50, when the production line was stabilized and quality was improved, But it was only from 2008 that our kait production really became substantial” (Mr. YUN SHEN, Assistant General Manager of JIANGSU WUZHONG CLOTHING CO,, LID). ‘We introduced the MO-6714D, JUKT's, semi dry head overlock sewing machine, in Jarge quantity whea the new plant became operational in 2005, It was.a big job for us. We installed the machines and set them up dluring the Chinese New Year holidays, hoping to have them ready by the time the ‘workers returned from the holidays. It was such an acrobatic arrangement and Schedule, But thanks tothe support of JUKI staff, we were able to start production without any problem” (Me. Wang, Assistant General Manager of the Company). Bookings for knit products have increased fourfold. since the introduction of the MO- ona, The problem of greasing on 20% of products is gone. JUKT equipment is ecenomical. ‘The increase in bookings was a result of the improvement of gressing problems. We We SHEN Assent Me Wie, Assen Cowal ‘Secretar Orecar used to find grease on 20% of our finished products. The introduction of the MO-6714D has resolved that, Asa result: We saved the man hours for removing the grease and making alterations. Workers are no longer worried about the greasing problem. Thus becalmed, they produce at higher volumes, + There's no longer any risk of product retums due grease problems. + Our use of JUKI machines has enhanced the tust of our customers So in addition to the improvements in quality and productivity. we now have ‘enhanced evstomer trust, That's big bonefi. “People say that SUKI machines are ‘expensive. But we can use the machines for longer because of the longer machine lifetimes. We are also free from the burden of alterations due to defects, and we have substantially higher productivity. These improvements enhance customer trust and bring in more orders. Inthe final analysis, we think JUKI machines are more economical” (Mr. SHEN), “Now that the company plant produces products of improved quality, is time to address problems with the subcontractors We are subeontracting part of our work, the overflow beyond our capacity, 10 subcontractors. Unfortunately, most these subcontractors aren’t using JUKI machines. To cope, our company is leasing machines to some of the subcontractors manwfacturing higher grade Products. In the future we expect these companies to introduce MO-6714D of (Me. Weng) The company sets its targets high. As Ms. Zhu, (President Secretary Director) puts it,"Our target for 2008 is to double sales and become one of the top five knit plants in JIANGSU Province.” If the company grows smoothly at the current Pace, there should be no problem achieving that target their own.” ts 2007 Vol.1 jm 5 Rohe Cols down skills in a clothing factor: Developing "human resources" before manufacturing clothes. As many as 494 skilled workers have been trained in an |n 1970, Yasuaki lwasaki established a vocational training school as part of an independent business enterprise. It was the first such venture ever in Osaka. He stuck to his policy of "developing human resources before manutacturing clothes" even after the collapse of the bubble economy in Japan. The company with the in-house vocational training schoo! still recruits new school graduates, pacple who want to acquire dressmaking skills, from all over Japan. We interviewed Iwasaki about his philosophy on operating @ company supported by high technical skits. Mr. Yasuaki Iwasaki, president of Iwasaki Company Limited His compory ompleys 120 people, Net ene of them was hired ond brought into the compony mid-career. Every employee wes fostered inthe compary.. Mr. Yasuaki Iwasaki from Iwasaki Company Limited eriticizes the present state of clothing factories in Japan: Japan don’t compensate their workers commensurately with their skills. The result? None of the workers bother to become experts They have no incentive." Iwasaki has been operating a clothing factory in Higashi-Osaka, Over the more than three decades he's been running his company (since 1970) Re nas developed hundreds of skilled clothing experts. His company's in-house vocational "The factories in ning school has graduated 494 irainees, I's a remarkable umber, Needless to say, all ofthe employees were recruited soon after graduation and were vocational trained in the compsny. No mid-career bites are included in thei ranks, "Teame up with the ides of establishing « vocational training school in my company in 1969,” reminisces Iwasaki, “In those days, all of our operators were junior high graduates. These people were valuable assets during the period of high-speed growth in Japan, We even had a word for them: "golden eggs.” So it was hard. for my company to recruit enough of them. Every time I visited junior high schools in Shikoku and Kyushuto I found it difficult to attract the students to my company. When I went to an Employme Service Agency in Shikoku for recruitment, one ofthe Agency staff had a great idea. Hf you could nun a vocational training school, you might attract potemtal labor,’ he told me. I didn't grasp all of the details at firs, but Tintuited what was necessary. I returned to naka st once and visited the city office for advice. Not long after I decided (0 establish a yocational training school within my ‘company.* Running the vocational traiing school it fire in Mr. Wwasaki’s heart. Good ports ar essential for manoecturing high-quality dothes. Mr, Iwasaki is an engineering school graduate and has alway's been interested in making things. A man with his background and of his character would never be satisfied with merely taking over the operation of a company originally established by his father and. running it The in-house vocational taining school must have tind something that ignited a passion for manufacturing clothes in 6 fm 2070 Iwacaki's hear, "When {started my job" he tells us, “I id ithalf-hearedly for While. In those days I spent most of my time making plastic models. ‘Overtime 1 found shat making clothes was similar to making plastic models. Assembly goes smoothly ard well as long as all of the parts are properly made, 1 as eventually convinced of the need to teach theory and practical sewing skills to my ‘employees. That was the only way to produce high-quality parts for ‘garments, That was how I came to be what Lam Row, a Yorational trainer and maker of clothes.” essential sews “The vocational training school has been running for 35 years, The domestic economy has moved from the high-speed growth era to the economic bubble era, then to the collapsed bubble er and now into the low-growth era. Slowly over the years, the garment factories in China came tothe fore, out-competing domestie makers ‘and depriving us of orders. Under these difficult circumstances, ‘many vocational training schools in Japan had too few incoming students to stay in business, But in spite of these arduous changes in the environment, Iwasaki kept his school open to train highly skilled sewing technicians. ‘Skis wil boys be important, 90 matter how for we advance. We only do Work which require higher skis. Some people ask Iwasaki to train people for companies. "Please develop a technically titerate workforce,” they plead, “Use your time and money in your school. Once the new graduates become skilled labor, we" I! hire dhera.* Iwasaki eds (© pay several million yen per year to keep his school running, including including instructor fees. He confesses that he was afraid his employees would leave his company after they acquired sufficient skills. He has continued the in-house vocational training school, however, maintaining his trust in his recruits in training. Iwasaki visite schools throughout Japan from July to September every year. Through the long history of the school, he has provided potential employees with a 3-day /2-night trip to the factory. sehool, and dormitory to allow them experience their future ife before recruitment, This helps him confirm thatthe recruits he spends so much money to train will want to stay with the company for many years. Iwenski retains copies of graduation Aipiomas ofall of the employees trained in the in-house vocational training school, from the very first one. The graduate creations of his graduates (equivalent to graduate theses) are exhibited in “Osaka Skills Fait" every November. Very few employees ever leave Iwasaki & Co, This may be a proof that the employees share Mr. LWvasaki's passion for msking high-quality products and appreciate his close care and support. Due to the aforementioned efforts, the company retains higher skilled labor and gets orders for difficult-o-sew products which cannot be manufactured by competitors. Accordingly, the processing charge is higher in proportion to the level of required skis, The ability w produce higher quality products that command higher prices is one of the fruits of fostering of skilled workers. ‘The sewing mache works only as well es the user operating It, I's crucial {to “develop peep before manufacturing products” ‘bwasaki thinks Japan fils niche For difficult-lo-make products I doesn't make sense for Japanese manufacturers to make products that can be made in China,” says Iwasaki. “Products that can be ‘nade in China should be made in China. The labor is much cheaper, Bu there are some products which can only be made in Japan, We, Japanese manufacturers, would never survive if we Were incapable fof placing dificult-to-mamufacture products. "The Tinished quality of clethes varies from maker to maker. If using machines, every manufacturer could make identical-in-quality products. But s [told you before, the sewing machine ie a tool. So the finished quality ofa products varies with the operator working the sewing machine. We should fester sewing machine operators capable of controlling ther tool, the sewing machine, with the high skill required to produce high-quality products’ Iwasaki ses the words “machine” and “too!” inthe special sense ‘only possible from a man who studies machinery because he likes i Let's think about Mr. Twasaki's motto: "Developing people before ‘manufocturing products." For Me, Iwasaki, high-quality products can't be produced simply by following the drawings. He believes that the people in change of manufacturing products should share the concepts and motives of the designers. They must therefore employ sewing machine operators with the same basic experience in making things as designers. Iwasaki can only do this by running his vocational training school Iwasaki clothing factory mainly produces jackets. The monthly ‘outpat is 6,000 pices, with a lot size set to approximately 60 to 70 pieces, The operators are divided into groups of 4 10 5 people each, Several different products are under production at al times. Th requires thatthe operators have not orly proper sewing techniques, bbut also expert knowledge of production management end process ‘management. Iwasaki's factory also undertakes many technically challenging jobs, Yaasaki Company Unies Preston: Yuh nasah Lecaton: 62:3 Hahah, Migastioaka Cy Number of employees: 120 Lcatons al acters: Higasnosake Cty (VocatonalTraning Schools attached), Kagoshima. and Nagasaki Une of busress: igh-qusiy ready made ade’ wear Faso hw ahs he gate wars 2007 Vol.1 jm 7 Introducing machines with automatic thread trimmers: How to do it and the benefits gained (Actual Achievements) TE Teen One of te oreatinnovations forthe Ingustrl saving machine, a ‘technology that has driven the development of the textile industry, is theautomati thread trimmer. Thatks tothe sewing machine withthe automatic trea trimmer, the word's garment makes ee producing Higher-quaty producs in larger volume “The last issue of JUK! Magazine covered the “Basics” ofthe sewing machine with the automatic thread trimmer. In this issue we follow up by iniroducing a clothing factoxy which has achieved remarkable fesulls from the adoption of machines with automatic thread timers. The TAYDO GARMENT COMPANY ie stunted at Can Tho inthe Mekong Det, a rie producing region in the Republic of Viena, about 3-hours by car rom Ho Chi Minh City. Tha textile industry has been rapidly developing in Vietnam, TAYDO GARMENT GOMPANY isthe largest men's shirt factory in Can tho. The company was established in 1989 and produces 5,000 shits a month. The factory started acing sewing machines with automatic thread trimmers about four years ago. Their production line nevly equipped with JUKI DDL-8500-7-WB/E2-10 machines achieved 20% to 30% higher productiviy than thelr other tines producing the same products. i thread-trimming related jobs were eliminated In their production lines without thread timer, the operitors have 10 collect products from an in-process item box after the sewing and wim threads collectively. This procedure, sewing by tundle followed by collective thread cutting. may sound efficent tu the actual work involves several steps before the thread trimming, K takes the operators more time than expected to collect 8 jm 2007 Vol. the parts, distinguish the right sides from the wrong sides, and line Up the pans. And some eperators may move sluggishly because of thei other tasks: One operator we watched speat three seconds or ‘more per preduct for thread trimming in a certain process In the production lines equipped with thread trimmers, the time ‘required for thread trimming is eliminated, the finished products are neatly arranged, and the operators carry out the work rhythmically (photographs 1 and 2), Ey Sewing machines with treed trimmers oso upgrade quality Thread is trimmed with a pair of small scissors after sewing, For innstitching collars or topstitching, the operazor has to control the tmatecial delicately with his or her sight hand. This is difficut, however, as holding scissors ean decrease the workability of the ‘operators movements. Some of the workers in the TAYDO factory broke the threads by hand to speed up production, but this tended to damage the fabric. Photographs 3 and 4 show the ease when the process is supported by another operator. Support is eri ‘operator in charge of the process cannot control his oF her job alone when the ible is covered with parts joined to.one ancther. If his is attompted the factory produces unacceptably high rites of defective and soiled parts. Ed rt pede rn he dard nee When the sewing work is carried out bundle by bundle and parte tare joined, the operator tends to handle the work as collectively as Possible. The operator inevitably spends a few seconds waiting the Theta uray asc! erased Terma ye po before starting the work with this method, and the quantity of gocds in process lengthens the time required for "arrangement." Thus, the {ime allocated for the main task, the tack with the biggest afect on productivity, i eventually reduced, Ef The sewing machine with on automatic thread timer is essentcl fo produce a variety of products in

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