You are on page 1of 26

Mandala Apparels Pvt. Ltd.

About Mandala Apparels


Mandala Apparels is a social enterprise founded in 2002 that manufactures organic, fair trade apparel and
accessories using sustainable fibers.

Through their transparent supply chain, they create global communities of farmers, manufacturers and end-
consumers who are committed to a sustainable future.

Partners *yet to be taught in detail*


Training of Workers and association with IL & FS *to be taught*

Mandala applies social and environmental criteria when selecting supply chain partners. By aligning the
supplier base with Mandalas sustainability priorities and transparency of the supply chain, they are able to
increase their impact, right from supporting smallholder farmers to better living and working conditions for
employees.

Cotton Farmers: Mandala Apparels has reached approximately 98 women farmers and has 288
acres of land filled with organic cotton and food crops.
Ginner : Mandala Apparels has collaborated with 100% organic and fair trade ginners with no
contamination with the conventional cotton and no child labor
Spinner: Mandala Apparels partners with 100% organic and fair trade spinners, at a spinning mill
that uses wind energy for all of its operations
Weaver and Knitter: Works with a knitter that sponsors education for 500 children in Tamil Nadu
and is also certified with 100% organic and as fair trade producers.
Printer and Dyer: Mandala Apparel works with a supplier that has its own zero discharge effluent
treatment plant and reuses 70% of the waste water generated.

Apart from collaborating with suppliers who use ethical and sustainable means for their production,
Mandala Apparels has also taken initiatives in:
Recycling hand tags for 3 clients
Aims on producing zero waste apparel
Targetting to reduce cloth wastage from 18% to 14% (appx.)
Training women in tailoring.
All the employees of Mandala Apparel Pvt. Ltd. Have a health insurance coverage
The company conducts regular training for all its employees on recycling, sustainability, savings
and investment, first aid and free emergency response.

Introduction to the different Departments


1) Compliance :
This department deals with the various certifications required for the proper functioning of the company, to meet
the required standards of the customers and to maintain the uniqueness of the company.

Certifications of Mandala Apparels Pvt. Ltd.


Fairtrade Certification:

FairTrade certification ensures that there has been zero exploitation at all levels of the supply chain involved.

Fairtrade stands for changing the way trade works, through fair prices and better
working conditions, to offer a more stable future for farming communities.
Fairtrade certifications is issued by FLOCert ( Audit and certification body for Fairtrade
Standards)
Devised after the incident of Rana Plaza in Bangladesh
Fairtrade Certificates are valid for 3 years
Fairtrade ensures-
i. Farmers receive a price that aims to cover at least their cost of production.
ii. Plus the Fairtrade Premium, a little extra money to invest in their farms, or in
community projects of their choice.
iii. Workers have safe working conditions and their rights to join unions and decent
wages are protected.
iv. It prohibits the use of any GMO (Genetically Modified Organisms)
v. Shoppers can buy products in line with their values and principles. They can
choose from an ever growing range of great products. By buying into Fairtrade
consumers support producers who are struggling to improve their lives.
vi. A credible way to ensure that the trade of the company has a positive impact for
the people at the end of the chain.

vii. Protection of the environment in which people work and live. This includes areas
of natural water, virgin forest and other important land areas and dealing with
problems of erosion and waste management.
viii. Development, implementation and monitoring of the operations plan on the
farming techniques. This needs to reflect a balance between protecting the
environment and good business results.
ix. No chemical is used from the prohibited section as per the Fairtrade Guidelines.
World Fairtrade Organisation (WFTO):

WFTO is the largest global network of Fairtrade Organisations representing the entire supply chain, a global
network of organisations representing the Fairtrade supply chain.

Membership in WFTO provides Fairtrade organisations with credibility and identity by way of an
international guarantee system, a place of learning where members connect with like-minded people
from around the world, tools and training to increase market access.
Mandala was WFTO certified in 2014.

Mandala implements the 10 principles of WFTO, which are:


Opportunities for disadvantaged producers
Transparency & accountability
Fairtrade practices
Fair payment
No child labor, no forced labor
No discrimination, gender equity, freedom of association
Good working conditions
Capacity building
Promote Fairtrade
Respect for the environment

GOTS Certification:
Global Organic Textile Standards defines the standards to identify the requirements to ensure organic status
of textiles, from harvesting of raw materials to labeling in order to provide an assurance to the end customer.

This Standard covers the processing, manufacturing, packaging, labeling, trading and
distribution of all textiles made from at least 70% certified organic natural fibres. The final
products may include, but are not limited to fibre products, yarns, fabrics, garments, fashion
textile accessories (carried or worn), textile toys, home textiles, mattresses and bedding
products as well as textile personal, care products.
Control Union is the inspection agency responsible for GOTS Certification in India
GOTS Certificates are valid for 1 year
It prohibits the use of any GMO (Genetically Modified Organisms)
Only textile goods (finished or intermediate) produced in compliance with this
Standard by a Certified Entity and certified by an Approved Certifier (= GOTS
Goods) may be sold, labelled or represented as:
i. "organic" or "organic - in conversion"
OR
ii. "made with (x %) organic materials" or "made with (x %) organic - in
conversion materials"

Certified as organic- Atleast 95% certified organic natural fibres at every stage.
Certified as organic- in conversion Atleast 70% certified organic natural fibres used at every stage.
made with (x %) organic materials" or "made with (x %) organic - in conversion materials-

No less than 70% of the fibre content of the products - excluding accessories - must be of certified organic
origin or from 'in conversion'. Up to 30% of the fibre content of the products may be made of non-organic
fibres that are listed in the GOTS guidelines.

Prohibitions in GOTS for Textile/ Garments:

The following is the list of chemical inputs that may be used in conventional textile processing but that are
explicitly banned or restricted for environmental and/or toxicological reasons in all processing stages of GOTS
Goods
Aromatic and/or halogenated solvents
Flame retardants
Non biodegradable elements
Chlorinated benzenes
Chlorophenols (including their salts and esters)
Complexing agents and surfactants
Formaldehyde and other short-chain aldehydes
Genetically modified organisms (GMO)
Heavy metals
Plasticizers like PAH
Inputs which are bio-accumulative and not rapidly degradable

Oeko Tex:

The STANDARD 100 by OEKO-TEX, introduced in 1992 is a worldwide consistent, independent testing and
certification system for raw, semi-finished, and finished textile products at all processing levels, as well as
accessory materials used. Examples: raw and dyed/finished yarns, woven and knitted fabrics, accessories, such
as buttons, zip fasteners, sewing threads or labels, ready-made articles of various types (garments of all types,
domestic and household textiles, bed linen, terry products etc.)
Oeko-Tex checks for harmful and hazardous substances that may be present in a product.
The aim is to level out global differences regarding the assessment of possible harmful substances in
textiles.
It can identify and eliminate potential sources of problematic substances at each processing stage.
Standard 100 of Oeko-tex deals with textile certifications.
Important legal regulations, such as banned Azo colourants, formaldehyde, pentachlorophenol,
cadmium, nickel, etc.
The inspection agency for Oeko-Tex certification in India is Hohenstein Institute.
Oeko-Tex certificates are valid for one year.

2) Business Development:
Business development consists of tasks and processes to develop and implement growth opportunities within
and between organizations
Business development is the creation of long-term value for an organization from customers, markets,
and relationships.

The field includes increasing revenues, growth in terms of business expansion, increasing profitability by
building strategic partnerships and making strategic business decisions.

Business developments can be undertaken in different areas such as:


Sales
Marketing
Strategic Initiatives or Partnerships
Project Management/Business Planning:
Product Management
Vendor Management
Negotiations, Networking and Lobbying
Cost Saving

Business Development deals with the unique positioning of the company and buyer-vendor relationships in
the apparel sector.
Mandala Apparels has a lot to offer when it comes to the uniqueness of the brand. Their certifications and CSR
initiatives differentiate them from other export houses.
The company employs underprivileged women and offer them stipend during their training period as well,
hence securing their future, making them self sufficient and be the earning hand of the household.
They plan on adapting the Sustainability Project 2020 where they aim to save water, empower women by
employing them.

Since the market of Fairtrade business has a comparatively smaller share of the entire apparel sector, the BD
has to undertake research to find and reach out to buyers, all of which are located outside India.
They meet and approach potential buyers at exhibitions, seminars and summits or communicate via email.
Most interactions happen through Skype meetings.

Even out of the meager percentage of the available market, they have to again put in a lot of research and
efforts to find and approach the potential buyer by matching their requirements with their needs.
A lot of factors come into play here, such as: market price, collection, seasons differing around different
countries, selling price, MOQ etc.

Merchandising:

Merchandiser is the bridge between the industry and the buyer. He has to look after every aspect of the job,
such as procuring raw material, making the garment, finishing the garment, documentation and shipping.

A garment export unit generally has department like fabric and trim stores, cutting, production, packaging,
checking etc. where Merchandising department is the link between all.

The job of a merchandiser is to co ordinate with all the departments in the office as well as the customers.
The main aim of the merchandiser is to ensure the completion of the order before the Shipping Date (when
the order is supposed to be shipped) and if delayed then furthermore, the Buyer Warehouse Date (when the
order is supposed to reach the warehouse of the buyer) to save the company from incurring huge loses.

Following are the responsibilities of merchandisers which gives importance to them-

Internal & external communication


Sampling
Preparation of Lab dips, Strike offs
On time Sourcing of Fabric & trims
Preparing internal order sheets
Preparing purchase orders
Advising and assisting production
Advising quality department about quality level
Mediating production and quality departments
Giving shipping instructions and following shipping
Helping documentation department
Taking responsibility for inspections
Following shipment

However, it would be a difficult job for a single person to execute so many operations properly and timely.
Though, the merchandiser would have a lot of experience in the production firm, there are a lot of
disadvantages of having a single person to manage a number of critical operations-

It would make the process complicated


The absenteeism of the merchandiser would affect the functioning of the export house severely
The single merchandiser has to have a thorough knowledge of the Design as well as the Technological
aspects.
If there is a problem that occurred in any of the departments, the merchandiser would give his
attention to that particular problem and may end up neglecting the other departments.

Mandala Apparels, being a developing company, follows a procedure where the merchandising department is
further subdivided into two categories-

a) Product Development Merchandising


b) Production Merchandising
This change was incorporated 3 years ago, and it took the company almost an year to get the change
properly implemented.

Product Development Merchandiser- The work of the Product Development Merchandiser is to act as the
point of contact for the buyer. All the communication with the buyer is coordinated by the product
development merchandiser.
The merchandiser gets the job done. He is an internal buyer and the point of contact for buyer from design
stage till the purchase order.

Key responsibilities of a PD Merchandiser:


To check quantity order is as per the forecast.
To verify costing
To ensure payment has been received from the buyer
To see to it that the delivery dates and deadlines are being met

Following are the steps involved in the profile of Product Development merchandising:
The buyer sends the colour requirements as per the season trends (in forms of pdf or colour palette).
Fabric selection/requirement is further sent in by the buyer.
Lab dips of certain colours from the colour palette (base colour of the garments) are developed as per
the mentioned fabric using different dying techniques and is sent to the buyer for approval
After the buyer approves it, he sends a print design on basis of which strike-offs are developed on
fabric at dispense.
It is not for the hand and drape of the fabric, but for size, colours used and design reference of the
print.
Further the buyer sends spec sheet, after confirming the lab dips and strike offs, based on which proto
sample is developed with available fabric, similar quality and any available colour.
Generally the 2nd or 3rd proto sample is accepted by the buyer.
Mandala apparels has buyers who attend trade shows, exhibitions and seminars overseas and have a
lot of agents so Mandala develops salesman sample after confirming the proto sample, so the buyer
comes to know how the sample is received in the market

The order of the above mentioned activities varies from company to company and some may receive the
fabric requirements first.

Requirements may be conveyed in the form of Pantone codes and RSWM.


Merchant hands over the pantone design to Sourcing departments
Fabric development is started
He makes sure that the required fabric is developed.
Strike offs (prints), lab dips (solid colours) are looked after as different print techniques are asked for
by the buyer. The look and designs differ based on different print techniques.
Buyer sends spec sheets (its a sample request)
Proto sample is made
After proto sample, 1st Costing of product is done and sent
This is followed by making of a Salesman or a second fit sample.
After the fit approval, another second costing is made because fabric consumption, fit etc would be
different from the estimated consumption.
Final costing is done when Fit sample is finalized and closed
Size set is sometimes made after purchase order
Once PD team has satisfied the buyer then the merchandiser gets the purchase order after which his
work is done.

Production Merchandising:

Production Merchandiser is responsible to follow up the suppliers through the fabric/trim etc sourcing team to
order raw materials for the order.

Production Merchandiser is also responsible for the closures of all samples of the order.

He is responsible to get the production done in-

Right Time
Right Quality
Right Quantity

To achieve this goal, the Production Merchandiser coordinates with

Sampling
CAD
Planning
Sourcing and Accounts for advance payment from the buyer
Quality
Logistics
Finance department

Responsibilities of a Production Merchandiser: Foremost to keep the understanding and info discussion with
Buyer Open, consistent, regular, T&A, day to day communications for closures

Milestone, crucial Dates and deadlines for the Production Merchandiser :

PO Date The date when the purchase order is raised for the sourcing of raw materials.
PI Raising- The Proforma Invoice is sent by the Merchandiser to the buyer as they confirm the order
(after receiving the PI the buyer sends the advanced payments)
BOM Date Bill of Materials is received by the sourcing team with all the details and cost of the raw
materials.
Raw material in house This is very important as the production would not be able to start without the
raw materials are obtained
PP Approval date The pre production sample is confirmed and the bulk production begins
PP Meeting Date- This is done prior to sending any style to the production floor, where planning is
done and technical issues are addressed and resolved.)
PCD: Plan cut date From spreading of the fabric to finished packaging
Ready for Inspection Date After packaging, buyer sends an auditor to inspect the order before
accepting the shipment. The shipment is then sent by Mandala Apparels on F.O.B. basis via the sea
route.

Delivery The Production merchant makes order closure report. He is also responsible to analyse if the deal
has gone into profit or loss (comparing the initial expected costing with the actual one) and has to think of
different ways as to cover up, if its a loss - to sustain.

Mandala Apparels - The buyers are mainly from outside India. The organic clothing brands the company works
with are usually in UK, USA or a few European countries. They currently have a grip on all 4 seasons as
compared to previously when they only handled 2 seasons at a time.

Head of Fabric and Trim Sourcing Department: Mr. Ashutosh Tiwari

Factors affecting sourcing of fabric and trims

Lead time:

Fabric and trim sourcing is very time consuming process which includes desk loom and lab-dip approvals, trim
and art work approval, FPT approval. The fabric sourcing itself will take lead time of 30-60 days depending
upon type of fabric for yarn dyed fabric it takes approx.45 day, for piece dyed fabric it take approx. 30 days
and for fibre dyed fabric it takes approx.55-60 working days. Merchandiser needs to decide the supplier of the
fabric supplier on the basis of type of fabric and time remains in hand to complete the export order. If fabric
sourced from other country, then time required for transportation needs to keep in mind.

Trim sourcing is another important factor that needs to take care. For trims generally it takes 15 days to get in-
house. That is also depends upon type of trims and from where trims are getting procured.

Logistics:

Logistics is one of the main factors which affect the fabric sourcing drastically. There are several aspects to it
which are

1. Time required for transportation

2. Infrastructure for logistics

3. Cost of logistics.

Merchandiser needs to keep in mind these factors while placing the order for fabric or trims. The time
required for transportation is very important to achieve the accurate lead time of fabric/trims procurement.
Absence of adequate infrastructure will lead to delay in fabric procurement. Cost of logistics will directly affect
the cost of garment; hence merchandiser should be well aware about these aspects of logistics and then place
the order for fabric and trims.
Quality parameters:

The demand for high-quality low-cost fabric/trims coupled with the need to reduce costs to increase operating
profits is driving more companies to outsource manufacturing overseas. Though sourcing is an effective way to
do business but sometimes fabric and trims supplier cannot meet the quality parameters, which will lead to
trouble for apparel merchandiser to execute the export order.

The ability of sourcing partners to produce quality fabric and trims consistently depends on a number of
factors. One of the main factors is skill of the workforce and their workers flexibility to work to produce wide
range of fabrics and trims. The technology up -gradation of the sourcing partners. Another important factor is
the accuracy of written communications and instructions received from the garment manufacturer/ apparel
merchandiser.

Sourcing costs:

The sourcing decisions are taken mainly on the basis of cost manufacturing. But now a days garment exporters
makes strategic bonding with fabric and trims vendors. The buyers also makes bonding with fabric and trims
vendors, these are called nominated vendor. The sourcing cost depends upon following factors

Labour wages

Manufacturing cost

Cost of logistics/transportation

Incoterm negotiated(for international sourcing)

When comparing the costs of manufacturing a fabric and trims offshore or domestically, manufacturers must
include all the hidden costs of added processes and steps that go hand in hand with offshore production. The
cost of sourcing is optimised when fabric and garment manufacturing units are under one roof or closer to
each other. The freight chargers are increased when there delay in manufacturing and material need to send
with air freight.

Minimum Order Quantity (MOQ):

This is the important factor that affects the sourcing. For sourcing of fabric and trims there is always a MOQ
for which directly affects the cost. Every supplier requires a certain MOQ to produce the fabric and trim
economically; otherwise the cost of running the production is higher if production is below MOQ. If garment
exporter places the order of raw material below MOQ then generally cost will be more for that. Hence
throughout the supply chain MOQ is maintained the in order to achieve the appropriate cost of production.

Fabric Sourcing:

Purchasing the right fabric can be sometimes a tough challenge faced by apparel manufacturers. Out of the
total cost of manufacturing a garment piece, the cost of fabric can contribute between 50 and 65 per cent.
Furthermore, even a minor oversight in selecting the right fabric and right manufacturer may spoil the entire
apparel programme.
The Fabric Sourcing Team receives the BOM (Bill of Materials) from the Production Merchandiser. On the basis
of which

Fabric Sourcing Destinations:

Mandala Apparels orders both, greige and stock or finished fabrics


Greige fabric is usually ordered from Chetana Organic and Fair-Trade Cotton, Sikkim
Stock fabrics are majorly ordered from ArmStrong Textiles in Tirupur
Woven fabrics are ordered generally from Selum, Erode while special fabrics are ordered from Delhi
and Ahmedabad

Steps of Fabric Sourcing:


The Fabric Sourcing Team receives BOM from the merchandiser.
The testing requirements are mentioned in the BOM itself
The fabric is then tested as per the buyers requirement. Mostly the fabric is tested in
SGS Lab or,
Intertec Lab, but
The buyer may also send his fabric inspector in order to get the fabric checked.
The fabric sourcing team receives the price quotation. If the fabric is possible within the amount
mentioned in the bill, the team agrees else it is resent to the merchandiser for negotiating with buyer.
5% extra fabric is ordered than required.
It constitutes 75% of the expense.
Purchase Order is raised to the fabric supplying mills
The fabric supplier submits the initial yardage first for sampling and to know the aptness of the fabric.
E.g. - if 500kgs is the total required fabric needed, the initial yardage would be 50kgs.
The invoice copy along with the inspection report and fabric is submitted to Mandala by the fabric
supplier.
After production of fabric, its inspection is carried out in 4-point system.

Trim Sourcing Steps:


First the Trim Sourcing team receives the BOM from the Merchandiser.
After receiving the BOM, the trim sourcing takes almost 4-5 days for locating the apt supplier, whose
product sample is later confirmed by the merchandiser
The Purchase Order is raised to the approved trim supplier after receiving the BOM
The production merchandiser has to sign and approve the PO before further actions.
The PO consists of information like - The date of delivery, Order Number, Payment terms etc.
The Trim Sourcing Team receives the PI (Performa Invoice) from the approved supplier.
Purchase Order is initiated
Trim Sourcing department takes approximately a week to produce the required trims.
Trims take 25% of the raw materials cost, while fabric takes the rest 75% of it.
After the goods are received, the GRN (Goods Received Note; created by inventory department of
Mandala Apparels), is issued.
All the bills are later handed over to the accounts department
The payment is generally done in advance with a 50-50.
Inspection

Inspection in reference to the apparel industry can be defined as the visual examination or review of raw
materials (like fabric, sewing threads, buttons, trims, etc), partially finished components of the garments and
completely finished garments in relation to some standards. The main objective of inspection is the detection
of the defects as early as possible in the manufacturing process so that time and money are not wasted later
on in either correcting the defect or writing off defective garments.

Purpose of fabric inspection

Fabric Inspection is an important aspect followed prior to garment manufacturing to avoid rejects due to
fabric quality and facing with unexpected loss in manufacturing. Fabric inspection is done for fault/defect rate,
fabric construction, end to end or edge to edge shading, colour, hand or feel, length/width, print defect and
appearance. Fabric inspection ensures to minimise the rejection of cut panels or rejected garments due to
fabric faults. Cutting inspected and approved fabric ensures not only finished garment quality but also reduces
rejects, improves efficiency and timely deliveries.

The purpose of fabric inspection is to determine the quality and acceptability for garments. As fabric is
received, it should be inspected to determine acceptability from a quality viewpoint. Some garment
manufacturers rely on their fabric suppliers to perform fabric inspection and fabric defects. In many small
companies, spreading and cutting is done by the same personnel and fabric is inspected as it is being spread
on a table for cutting.

4-Point System

The 4-Point System, also called the American Apparel Manufacturers (AAMA) point-grading system for
determining fabric quality, is widely used by producers of apparel fabrics and is endorsed by the AAMA as well
as the ASQC (American Society or Quality Control).

The 4-Point System assigns 1, 2, 3 and 4 penalty points according to the size and significance of the defect. No
more than 4 penalty points can be assigned for any single defect. Defect can be in either length or width
direction, the system remains the same. Only major defects are considered. No penalty points are assigned to
minor defects.

In this system, one should inspect at least 10 per cent of the total rolls in the shipment and make sure to select
at least one roll of each colour way.

Fabric defects are assigned points based on the following:


Total defect points per 100 square yards of fabric are calculated and the acceptance criteria is generally not
more than 40 penalty points. Fabric rolls containing more than 40 points are considered "seconds".

The formula to calculate penalty points per 100 square yards is given by:

The following are noteworthy points for this system:

No more than 4 penalty points can be assigned for any single defect.
The fabric is graded regardless of the end-product.
This system makes no provision for the probability of minor defects.
4 point system is most widely used system in apparel industry as it is easy to teach and learn.

General Inspection Procedures

1. Fabric inspection is done in suitable and safe environment with enough ventilation and proper lighting.
2. Fabric passing through the inspection frame must be between 45 - 60 degree angles to inspector and
must be done on appropriate Cool White light above viewing area. Back light can be used as and when
needed.
3. Fabric speed on inspection machine must not be more than 15 yards per minute.
4. All fabric inspection must be done when 80% of good or lot is received.
5. Shade continuity within a roll by checking shade variation between centre and selvage and the
beginning, middle and end of each roll must be evaluated and documented.
6. Textiles like knits must be evaluated for weight against standard approved weight.
7. Fabric width must be checked from selvage to selvage against standard.
8. All defects must be flagged during inspection.
9. The length of each roll inspected must be compared to length as mentioned on supplier ticketed tag
and any deviation must be documented and reported to mill for additional replacement to avoid
shortage.
10. If yard dyed or printed fabrics are being inspected the repeat measurement must be done from
beginning, middle and end of selected rolls.

Fabric Inspection in Mandala Apparels

Once fabric is in-house, the weight of the whole bunch of fabric is taken and noted, and compared with
the suppliers invoice for any variations.
Generally, a variation of Kg and in very rare cases 1 kg is acceptable.
The fabric received in here is in Taka. *Taka refers to the fabric not in roll form, but in open width.*
Before the inspection begins, the fabric QC will be handed swatch cards and shade cards provided by
the merchandiser. Then the inspection begins:
First, it is checked for any shade variations. The fabric QC would make sure there arent any shade
variations and if there are, slightly, then he decides how to manage them.
After this, the GSM of fabric is weighed at 2 different stages.
Initially the GSM is weighed when the fabric is open. After this initial check, the fabric goes for a 24
hour relaxation period.
This step is mandatory. Due to atmospheric conditions & moisture, weaves tend to contract and come
closer to each other. So the weight and GSM would vary and change.
GSM is measured again the following day. This is regarded and taken as the final GSM of the fabric.
After this, the manual inspection of fabric in 4-point system begins

4 point system:

A manual checking of fabric is undertaken and a calculation is done where standardized formula is given as to
how much fabric defects can be passed. Some defects can be corrected and others are beyond correction.

Defects like Holes, missing lines, weaving defects, print defects, deadly irremovable stains cant be corrected.

They note it all down in rough first after which it is taken by a report maker QC who makes a report in proper
format.

Factors like GSM, what kind of defect it is, what length it was found in, is it passed, if it is passed then how
come, calculation of percentage are all taken into account and answered.

They use Red Hold and Green card system.

If it is green, when the cut plan comes they can issue it as per priority.

If it is red, high authorities take a call where it should either be rejected or taken a call on to return it to the
supplier or after a discussion, to avoid and cut as per lay and design.

The defect can otherwise be hidden in the most unobvious, invisible way.

When put on hold, the merchandiser will have a discussion.


Types of Fabric available in the Unit:

Knitted Fabric-

Single Jersey
Interlocked
Lycra single Jersey
1X1 Rib
Lycra Rib
Derby Rib
Loop net
Brushed Fleece
Pointed Jersey
Pointed Rib
Velour Fabric
Pique Jersey
Brushed Single Jersey
Polar Fleece
Micro and Long Sherpa

Woven Fabric-

Poplin - 40sx40s, 60sx60s, 50sx50s


Satin - 40sx40s, 60sx60s, 50sx50s
Voile - 80sx80s
Cambric - 60sx60s
Cordruoy - 28 weales , 21, 14, 7
Twill 40sx40s, 30sx30s, 50sx50s
Drill 40sx40s, 30sx30s, 50sx50s
Lycra satin - 40sx40s, 30sx30s, 50sx50s
Lycra twill - 40sx40s, 30sx30s, 50sx50s
Lycra Drill 20sx20s, 30sx30s, 40sx40s, 50sx50s
Dobby
Linen
Gabardine 20sx20s
Light Denim 4.5oz
Weight denim 10.5oz
Tencil

Projects Assigned- 5S and SPC Implementation


Literature Review of 5S
5S is one of the basic tools of running lean and a very good way to help companies to reduce waste and
enhance profits.
The concept of 5S comes from Japan. The original purpose of the 5S is to make the workplace orderly to
improve safety and efficiency, reducing the product defects rate. Since the implementation of Japanese
manufacturing, these techniques have proven to work well. Japanese goods have become synonymous with
the top rank products of the world.
During the mid 1950s, Japanese manufacturing companies were forced due to lack of resources, to develop a
method to make every scrap used while
wasting nothing.
There are four activities in the Japanese system. These
activities, each beginning with the letter S, were:
1. Seiri (sort)
2. Seiton (set in order)
3. Seiso (shine)
4. Seiketsu (standardize)

After that, a fifth activity was added which called Shitsuke (sustain), they are now known as 5S.
Based on five Japanese words that begin with'S', the 5S focuses on effective work place
organization and standardized work procedures. 5S classifies the work environment, reduces
waste and non-value activity while improving quality, efficiency, and safety. These processes
can increase morale, create positive impressions on customers, and increase efficiency and
organization. 5S makes employees feel better about their work environment. This improvement
leads to less waste, better quality and reduced lead times. Any of these benefits will make a
company more profitable and competitive in the market place (Skaggs, 2010).
Before a company implements the 5S, they should know what 5S are and why 5S. A lot
of companies feel that they should do 5S first in order to go lean.
Some proven reasons for this:
5S is clear, easy and gets people's attention. Yet, there is no rule to ask where to start.
Begin 5S implementation when there is a reasonable point within a company. Let employees
understand what the purpose is and how to follow it
Do not use 5S just because everyone else is doing it.
When a company wants to implement 5S, just like anything new for the company, a leader should describe
what 5S is and how it will be utilized.

1. Seiri - Tidiness
2. Seiton - Orderliness
3. Seiso - Cleanliness
4. Seiketsu - Standardization
5. Shitsuke - Discipline

Meaning in Japanese Context:

Throw away all rubbish and unrelated materials in the workplace


Set everything in proper place for quick retrieval and storage
Clean the workplace; everyone should be a janitor
Standardize the way of maintaining cleanliness
Practice 'Five S' daily - make it a way of life; this also means 'commitment'
A lot of studies show many benefits once the company runs 5S such as creating organized workplaces (Skaggs,
2010), promoting the clean work environments (Barker, 2008), improving safety (Prabwo, N.D.), and increased
product quality and productivity (Business Excellence, 2010). 5S should be considered an everyday continuous
improvement activity for individuals and small groups (Breyfogle, 2008).

Some companies think that they are too busy to rearrange the workplace because
it will take too much time cleaning and to keep the workplace neat.
On the other hand, it means they do not want to keep the work environment clean and neat (Hirano,1995).
Running 5S can be divided into three sections which are create a structured process for the project, make a
clean environment, and create a clear method of management for the project (Rowlinson, 2004).
If companies do 5S in the right way, it will help the company to have a smooth operation, hence, all the
employees will be happy to remain with the new process in order to have a better environment (Olofsson,
2010).

The following are summaries of some important benefits from implementing a 5S process:
Orderliness (seiri and seiton) - by using the simple way to maximize the company's efficiency and reduce
defects.
Cleanliness (seiso and seiketsu) - once they have better environment, they can improve the healthier life,
safety and transparency
Discipline (shitsuke) - enhance the quality control ofworkl life and work criteria due to training and
education improve the level of morale (Gapp, Fisher and Kaoru Kobayashi, 2008).

The first step of 5S implementation is sort (Seiri).


The purpose of sort is to classify the items which you need from those that are not needed. The aim for sort is:
keep everything required and eliminate everything else (Business Excellence, 2010).
Gather all of the people who work in the area where you are going to do the first step.
Ask them to remove everything from the area that is not necessary (Flinchbaugh, 2006).
Skaggs (2010) describes that in the first step, all items in a workplace are sorted based on needs and not
wants.
First, divide all tools or materials into specific areas: cannot be used, unlikely to be used, and tools or materials
that can be used (Hirano, 1995). Hirano (1995) also divides the
tools or materials into categories: rarely used items, occasionally used items, and frequently used
items. In sort, criteria results should seen:
1. What items needed and not needed.
2. Red- tag targets, frequency, and responsibilities and
3. Disposal procedure (Dennis, et aI, 2007).
Once the things not needed are thrwn away, the place becomes larger, and one can save
money and space rather than pay for more construction (Graban, 2009).
What if there is some issue about items that will possibly be needed in the future? Graban (2009) also
describes that there is a buffer zone, which is called a 5S SOli area, that can be set up anywhere in the
department. Not everyone in the organization can notice what items should be exactly kept and what else
should throwaway, so keep all unsure items for a week in order to make sure it is waste. This prevents people
thinking the items might be used someday.
The supervisor can interrupt if arguments occur. Unsure items can be kept in the special area in the center of
the inventory location.
The differences between the things needed and not needed is the key part of sort.

Many studies show the first step of 5S should determine what things that are needed and what is not, as well
as how to decide if the item is needed or not.
Consider if the item is not for supporting the main process, then it should be kept outside the direct working
place (Moulding, 2010).
The items can be set into three different categories:
(1) Low usage
(2) Medium usage
(3) High usage.
The items that are defined as low usage can be kept at a far off work area. The medium usage items can be set
it in a place nearby. For the high usage items, they should be kept closest to the main working place (Smith,
1977).

Set in order. In this step, all items had already passed the sort step and are ready to go further. The purpose of
this step is to see where every item is located in the right place (Dolcemascolo,2003). Paulsen (201 0)
describes that to run this step, first consider three questions:
What do I need to do my job?
Where should I located this item?
How many of this item do I need?
In order to save more time, BEVT (2005) shows that set in order is to help everyone in the organization
immediately know where the stuff is, so that they can grab it right away, and when they return everything
needs to be in the same place as they were before they took them.
The purpose of this step is to let anyone who needs the tool can get it right away.
Set everything in order and keep everything in a condition which allows it to be used right away (CAA, 2001).
"This step consists of putting everything in an assigned place so that it can be accessed or retrieved quickly, as
well as returned in that same place quickly," (Siliconfareast.com, N.D.).

"All tools and equipment should be cleaned. Part of the purpose of the shine step is to expose problems. Trash
and dili may be obscuring worn or frayed wiring. Oil buildup on a machine may indicate a leak or crack in it
that needs to be repaired or replaced," (Moulding, 2010). Paint the floor and all items to make them look like
in new condition, and apply a fresh coat of paint. This step can make your organization look like a brand new
business (Flinchbaugh,2006).
Skaggs (2010) explains that cleaning must be done not just after working, but on a regular schedule to remove
dirt and dust from the workplace. Cleaning is not just about making everything look good. It is a way to notice
problems early and to keep work areas and equipment in good operating condition even more to extend the
duration for all (Dennis et. aI,
2007).
Baker (2008) describes that in the standardized step; everything should be clearly identified and labeled. The
purpose of this step is to keep the first three Ss, sort, set in order, and shine as the standard all the time and
let all personnel keeps the same way whenever they perform their daily. Standardization is about keeping the
first three steps up to speed and running 5S will come into effect (Baker, 2008). Breyfogle (2008) describes
that, "working manners, tools and identification markings are standard and recognizable throughout the
factory.
5S methods are applied consistently in a uniform and disciplined manner". This step is the way to keep the
first three Ss, and make it as a standard method. Standardization also brings three Ss into regular work duties
(U.S Environmental Protection Agency, N.D.).

This is the final step in the entire 5S system, but also is the hardest step for 5S. "The
Sustain step is the most difficult because it requires continued diligence (Paulsen, 2010). The checklist helps
everyone in the organization to maintain and continue all actions with first four Ss to improve work (Breyfogle,
2008). This final step does not mean just to keep the first four Ss also means to keep up the increase of the
improvements. The most important thing is to make a system which can distribute data for the company and
this can help the company to make informed decisions (Bersbach, 2010). Dolcemascolo (2003) explains that if
5S implementation failed, it was because the company never completed 5S implementation.
On the other hand, if the organization implements 5S completely, a 5S program will have longevity.

Summary

The purpose of the 5s is to make the workplace orderly to improve safety and efficiency, reduce the product
defect rate and other possible wastes. This chapter covered by many different methods of each step of 5S and
others' experiences who have used 5S before. From these details covered in this chapter, it became clear that
how 5S helps an organization improve the working environment, and to promote efficient process flow.

Literature Review of SPC

It is an analytical decision making tool which allows you to see when a process is working correctly and when it
is not. Variation is present in any process, deciding when the variation is natural and when it needs correction
is the key to quality control.

History
The foundation for Statistical Process Control was laid by Dr. Walter Shewart working in the Bell Telephone
Laboratories in the 1920s conducting research on methods to improve quality and lower costs. He developed
the concept of control with regard to variation, and came up with Statistical Process Control Charts which
provide a simple way to determine if the process is in control or not.
Dr. W. Edwards Deming built upon Shewarts work and took the concepts to Japan following WWII. There,
Japanese industry adopted the concepts whole-heartedly. The resulting high quality of Japanese products is
world-renowned. Dr. Deming is famous throughout Japan as a "God of quality".
Today, SPC is used in manufacturing facilities around the world.

Specific SPC Tools


The preparatory phases of SPC involve several steps using a number of different tools.
These tools are described below and most are available in Statit QC.

Seven quality tools are available to help organizations to better understand and improve their processes. The
essential tools for the discovery process are:
Pareto Chart
Check Sheet
Cause-and-Effect Sheet
Flow Chart
Scatter Diagram
Histogram
Control Charts
Brainstorming

a) Pareto Charts- The Pareto chart can be used to display categories of problems graphically so they can
be properly prioritized. The Pareto chart is named for a 19th century Italian economist who postulated
that a small minority (20%) of the people owned a great proportion (80%) of the wealth in the land.

There are often many different aspects of a process or system that can be improved, such as the
number of defective products, time allocation or cost savings. Each aspect usually contains many
smaller problems, making it difficult to determine how to approach the issue. A Pareto chart or
diagram indicates which problem to tackle first by showing the proportion of the total problem that
each of the smaller problems comprise. This is based on the Pareto principle: 20% of the sources cause
80% of the problem.

b) Cause and
Effect Diagram- One
analysis tool is the
Cause-and-Effect or
Fishbone diagram.
These are also called Ishikawa diagrams because Kaoru Ishikawa developed them in 1943. They are
called fishbone diagrams since they resemble one with the long spine and various connecting
branches.

The fishbone chart organizes and displays the relationships between different causes for the effect that is
being examined. This chart helps organize the brainstorming process. The major categories of causes are
put on major branches connecting to the backbone, and various sub-causes are attached to the branches.
A tree-like structure results, showing the many faces of the problem. The method for using this chart is to
put the problem to be solved at the head, then fill in the major branches.

c) Flowcharts - After a process has been identified for improvement and given high priority, it should
then be broken down into specific steps and put on paper in a flowchart. This procedure alone can
uncover some of the reasons a process is not working correctly. Other problems and hidden traps are
often uncovered when working through this process.
Flowcharting also breaks the process down into its many sub-processes. Analyzing each of these separately
minimizes the number of factors that contribute to the variation in the process.
After creating the flowchart, you may want to take another look at the fishbone diagram and see if any
other factors have been uncovered. If so, you may need to do another Pareto diagram as well. Quality
Control is a continual process, in which factors and causes are constantly reviewed and changes made as
required.
d) Scatter Diagram-The Scatter plot is another problem analysis tool. Scatter plots are also called
correlation charts.
A Scatter plot is used to uncover possible cause-and-effect relationships. It is constructed by plotting
two variables against one another on a pair of axes. A Scatter plot cannot prove that one variable
causes another, but it does show how a pair of variables is related and the strength of that
relationship. Statistical tests quantify the
degree of correlation between the
variables.
e) Check Sheets
Check sheets are simply charts for gathering data. When check sheets are designed clearly and cleanly,
they assist in gathering accurate and pertinent data, and allow the data to be easily read and used. The
design should make use of input from those who will actually be using the check sheets. This input can
help make sure accurate data is collected and invites positive involvement from those who will be
recording the data.
Check sheets can be kept electronically, simplifying the eventual input of the data into Statit QC. Statit QC
can use data from all major spreadsheets, including Excel and Lotus 123, all major database programs and
some other SPC software programs. Since most people have a spreadsheet program on their desktop PC, it
might be easiest to design a check sheet in a spreadsheet format.
Check sheets should be easy to understand. The requirements for getting the data into an electronic
format from paper should be clear and easy to implement.

f) Histograms
Now you can put the data from the check sheets into a histogram. A histogram is a snapshot of the
variation of a product or the results of a process. It often forms the bellshaped curve which is characteristic
of a normal process.
The histogram helps you analyze what is going on in the process and helps show the capability of a
process, whether the data is falling inside the bell-shaped curve and within specifications. See Process
Capability Chart cp on page 27 for more information.
A histogram displays a frequency distribution of the occurrence of the various measurements. The variable
being measured is along the horizontal x-axis, and is grouped into a range of measurements. The
frequency of occurrence of each measurement is charted along the vertical y-axis.
Histograms depict the central tendency or mean of the data, and its variation or spread. A histogram also
shows the range of measurements, which defines the process capability.

g) Control Charts From a quality control perspective, an out-of-control service or production system is trouble! It is
probably not be meeting customer specifications or achieving business goals, and there is no way of predicting if it will or
can.
There are two general ways of detecting that a process is out of control. The first test for an out-of-control process asks, "Is
any point falling above or below the control limits on its control chart?" This particular test is very easy to perform by
viewing the control chart.

Steps Involved In Using Statistical Process Control


Proper Statistical Process Control starts with planning and data collection. Statistical analysis on the wrong or
incorrect data is rubbish, the analysis must be appropriate for the data collected.
Be sure to PLAN, and then constantly re-evaluate your situation to make sure the plan is correct.
The key to any process improvement program is the PDSA cycle described by
Walter Shewart.
Plan
Identify the problem and the possible causes. The QC tools described in this manual can help organizations
identify problems and possible causes, and to prioritize corrective actions.
Do
Make changes designed to correct or improve the situation.
Study
Study the effect of these changes on the situation. This is where control charts are used they show the
effects of changes on a process over time. Evaluate the results and then replicate the change or abandon it
and try something different.
Act
If the result is successful, standardize the changes and then work on further improvements or the next
prioritized problem. If the outcome is not yet successful, look for other ways to change the process or identify
different causes for the problem.
Purpose of the Study-
The purpose of this study is to understand and implement some of the SPC principles to assist Mandala Apparels
manufacturing company to become more efficient and more productive by finding the root cause of defects and
trying to achieve minimum amount of defects as possible.