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Garment Manufacturing Process Lecture handouts Wollo University, KIoT

CHAPTER FIVE

APPAREL MANUFACTURING STRATEGIES

5.1. Introduction

Increased foreign competition has intensified the need for more effective manufacturing.
However, the means to accomplish this task has become a subject of controversy. On one hand,
much of the practitioner literature suggests that the implementation of Computer Integrated
Manufacturing (CIM) is the only means available to retain position of manufacturing
leadership, see, e.g., Vollum (1984) and Berger (1986). Other authors cite the Japanese as
having achieved an extremely competitive position while employing limited automation and
using simple and decentralized management techniques, e.g., Schonberger (1986).
This debate stems from the clash of two diametrical viewpoints. In one vein, CIM represents
the culmination of manufacturing computer involvement that began with material
requirements planning (MRP), a suggested improvement over the older reorder point (ROP)
system, in the early 1970s. In the opposing vein, the so-called Japanese manufacturing
techniques such as just-in-time (JIT) or zero inventories (ZI), make little use of computers and
instead place greater responsibility for schedule compliance and quality on the production
worker. However, the techniques used to implement JIT and ZI are, in many ways, identical
to those found in the "outdated" ROP systems.
The terms push and pull refer to the means for releasing jobs into the production facility. In a
push system, a job is started on a start date that is computed by subtracting an established
lead time from the date the material is required, either for shipping or for assembly. A pull
system is characterized by the practice of downstream work centers pulling stock from previous
operations, as needed. All operations then perform work only to replenish outgoing stock.
Work is coordinated by using some sort of signal (or Kanban) represented by a card or sign.
One problem with comparing pull and push systems is that terms like JIT have come to mean
more than a way to schedule production. JIT includes other features such as short setup times,
perfect quality, stockless production, and increased worker involvement. To a certain extent,

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Garment Manufacturing Process Lecture handouts Wollo University, KIoT

JIT has come to refer to all that is good in manufacturing. As such, it is difficult to understand
when and why push and pull systems are effective
The million-dollar question for any production manager today is the selection between a push
and a pull production system. Push and pull systems determine when and where to move
material in a production process. A push system is characterized by a make to stock
environment and a pull system is characterized by make to order. An appropriate system that
would cater to the requirements of the company has to be selected.
A distinction is made between push and pull production systems based on the trigger point.
The pull system is based on customer orders, while a push system is based on forecasts. The
fluctuations in inventory levels in a push system are affected by forecasting errors, while the
fluctuations in customer demand affect the pull system. Most of the production problems can
be solved by using an appropriate push and/or pull system. It is evident that neither one is
always better than the other.
In fact, a hybrid approach is more superior, depending upon the manufacturing system. The
main objective of a hybrid system is to combine the best features of both worlds, rather than
differentiating between the two. There is an overwhelming need to develop integrated
manufacturing processes, which can correspond flexibly to market demands and still maintain
high productivity.

5.2. Features of Different Production Systems

5.2.1. The Features of Mass Production System – small variety, large lot
The basic manufacturing method in mass production is the assembly line conveyor system,
also called the Ford System. Mass production systems seek to achieve the following goals:
1. Increase in productivity
2. Uniformity of product
3. Reduction in costs
4. Consistency of quality
5. Shortening of production lead-time.
This means, in effect, that the production process is divided into simple work units, in which
it is easy to learn the work and develop skills. This lessens disparities in skill between

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Garment Manufacturing Process Lecture handouts Wollo University, KIoT

employees, promotes product uniformity, and makes mass production possible. The work done
by each work unit should require about the same amount of time to make overall work flow
smoothly. This technique permits the workload to be evenly distributed among all the
employees and improves the operational usage of equipment, enabling both men and machines
to achieve 100% performance without stopping the lines. It also results in a certain measure
of cost reduction.
In general, however, mass production systems must avoid design changes or model diversity
as much as possible if they are to avoid changing the work content of each process, increasing
the number of parts for every model and adjusting - as a result - the equipment for all necessary
modifications.
If adjustment of work is required, there will always be an accompanying loss of time and
quality. To avoid this loss, therefore, production is always done in large lots. For example,
parts for the same types and models are made together. It is obviously a good idea to produce
them in large lots with the fewest possible changes of press dies. The manufacture of common
parts thus facilitates the whole mass production system. This is short is the practical concept
behind the mass production work site.
It has generally been held that mass production, while possessing various market
characteristics, makes the maximum effect on cost reduction by systematic production in large
lots. The American automobile companies have indeed proven this in the past. Mass
production, as summarized by the phrase “conveyor system,” certainly involves work that
“flows” along assembly lines, but if one moves back up the production “stream” along the
preceding processes, one will note that the flow is not everywhere constant. An automobile
plant uses an assembly line with a conveyor system, but those of its departments engaged in
the rough processing of materials, such as stamping or casting and forging, cannot easily
employ the conveyor system. Here large lot production - demanded by equipment limitations
- becomes central.
We can see, in reviewing the characteristics of the mass production system, while the ability
to obtain good results through large lot production is indeed an important factor, the current
shift to large-variety, small-lot production presents serious problems for the older small-
variety, large lot production technique.

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5.2.2. The Features of Flexible Production System – large variety, small lot
The market is always changing through gradual expansion or contraction, and never remains
static. As a market matures, the demands of its customers diversify and stimulate the
development of large variety, small lot production. This variety includes types, models and
options.
The ideal situation is to have the production department make products in accordance with
sales. At the actual work site, however, there are many different restrictions on this ideal, so
the production plan is often formulated with emphasis on the manufacturing side. The sales
and production planning departments can, in their interaction with the production
department, cause problems at the plant, including poor forecast, uncertain production
schedules and numerous design changes in the manufacture of products.
Given these conditions, the production department will try to produce goods strictly by the
production schedule table in large lots, and without line stoppages, in order to increase
production efficiency and prevent any decrease in the operational usage of the equipment. It
will also increase stock as a hedge against breakdowns, defective products and absenteeism.
This type of factory employs many devices in each process, thus increasing extra work and
making it difficult to properly assess production capacity. The various problems connected
with employees and equipment all tend to blend into a murky fog. Under these circumstances,
the plant will start to manufacture products independently of market needs and without the
capacity to respond immediately to customer needs. The result of all this is that the amplitude
of the increase and decrease in production quantities will be much larger than actual conditions
warrant.
To counteract this at the actual work site, our hypothetical factory will increase equipment so
it can accommodate maximum production increases and will star to automate its lines, both
wasteful capital investments. Additionally, the work will become unbalanced and the working
methods irregular, leading to problems in quality and labor relations. A trend of this kind
causes much waste and raises costs, and clearly influences business results negatively.
Conventional production systems all follow this pattern to a certain extent. Attempts to make
improvements or introduce new equipment to develop the work site will, under such
circumstances, have a negligible effect.
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Garment Manufacturing Process Lecture handouts Wollo University, KIoT

5.2.3. The Features of Lean Production System - TPS


The Toyota Production System symbolizes a management philosophy for addressing issues
related to: quality, cost, productivity, and respect for people -- in conventional production
systems.
To achieve this objective, Toyota aims at a synchronized, sequential production system that
can deliver just enough stock, at just the right time (just-in time), to each line along the whole
length of the production process.
In contrast to the conventional production system, in which systematic mass production with
large lots is believed to have a maximum effect on cost reduction, the Toyota philosophy is the
“Make the smallest lot possible, and do so by setting up work stations in the shortest time
possible.”
If each process in a large-variety, small-lot production system were to produce large rather
than small lots, the stock needed would be enormous due to the large variety of parts and
would lead to great waste. This in turn would invite an increase in cost and a decrease in
quality.
At Toyota, measures have been taken to reduce almost to zero the various types of waste
resulting from overproduction and overstocking. The key mechanism for this is the application
of the “Pull System” rule, by which the parts needed for a succeeding process are picked up at
the preceding process with Kanban as the prime means for conveying information.
5.2.4. Features of Customized Mass production System
In 1993, Joseph Pine (Pine, 1993) gave MCM (Mass Customization Manufacturing) a clear
definition as a strategy that sought to exploit the need to support greater product variety and
individualization. Further, the goal of MCM was to produce and deliver customized products
rapidly while keeping costs at the mass-production level. Since 1993, advancements to this
innovative trend of manufacturing strategy have been drawn from many related knowledge
and technology domains
In recent years, advances in computer aided design (CAD), product data management (PDM),
and networking technologies have made mass customization no longer a legend, but closer than
ever (Ruddy, 2002; Heikkila, 2002). Richard Morley, inventor of the programmable logic
controller and co-author of The Technology Machine: How Manufacturing Will Work in the
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Year 2020, forecasted that, “the word ‘personal’ will take on more applications: personal
families, personal food designed to maximize custom diet needs, personal clothing [clothing
sized to individual bodies and fabricated to personal climate and skin needs], and personal
[customer-designed] cars” (Felton, 2001). Mass customization is about to take center stage.
MCM competent manufacturers will enjoy superior market share and greater profit margins,
and it is the promise of these economic incentives that will compel other manufacturers to
move to MCM sooner than later.
This strategy brings radical changes to methods used to operate traditional manufacturing
enterprises. It is changing the way customers make purchases and has a strong impact on how
products are made (Smirnov, 1999).

5.3. Push System

In conventional production systems, parts produced by one process, as defined by the


production schedule, are delivered to following processes even if they are not yet needed there.
This method may be good when parts can be produced on schedule throughout the whole
process. But if just one process has trouble and the line stops, the processes directly related to
the troubled one will suffer from either a shortage or a backup of parts. This is called a “push”
system.
Traditional manufacturing starts with the manufacturing, regardless of the requirements for
that product, and then pushes to the next step. The next step can be an internal process or the
selling in the market. The disadvantage of this system is the over production. This is because
the production is carried out without an actual requirement. To avoid wastages the following
processes must produce the same quantities. At the end of the process, manufacturers might
have a large stock of products which there is no actual demand in the market. To sell these
products, which market has no requirement; marketers have to create the requirement. This
requirement creation process will take huge amount of money in the form of advertising
campaigns, discounts etc. the worst part is, even with this effort there is no guarantee that the
goods can be sold.
Competition in the manufacturing industry over the next decade will be focused on the ability
to flexibly and rapidly respond to changing market conditions. With significantly shortened

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Garment Manufacturing Process Lecture handouts Wollo University, KIoT

product life cycles, manufacturers have found that they can no longer capture market share
and gain higher profits by producing large volumes of a standard product for a mass market.
Success in manufacturing requires the adoption of methods in customer-acquisition and order-
fulfillment processes that can manage anticipated change with precision while providing a fast
and flexible response to unanticipated changes (Fulkerson, 1997). Many companies are
confronted with the challenge of changing their strategic orientations to meet demands of the
current market place.

5.4. The Pull System

In conventional production systems, parts produced at one process, as determined by the


production schedule, are delivered to succeeding processes even if they are not yet needed there.
This method may be good when parts can be produced on schedule throughout the whole
process. But if just one process has trouble and the line stops, the processes directly related to
the troubled one will suffer from either a shortage or a backup of parts.
The pull system eliminates under or over production by limiting production to those parts
demanded by the next downstream process. A typical vending machine is a good example of a
pull system in action. The customer ‘pulls’ the items needed, in the quantity needed, at the
time needed. The supplier replaces (fills up) only those items ‘pulled’ by the customer.
For a preceding process to produce the requisite quantity of parts all production processes must
have people, equipment and materials that can manufacture the parts “just-in-time.” If the
downstream process’ demand is irregular in quantity and time, the upstream process must
proportionately increase or decrease output to compensate for the irregularity.
The pull system is designed to allow production of parts in response to sales: unless an employee
from the following process goes to the preceding process to pick up the parts, the preceding
process must not produce any more parts than required. Nothing will be produced until the
next process really requires it. In the bigger picture, the manufacturers will not produce
anything, unless there is a customer demand. The customer demand will pull the products from
the manufacturing facility. From the internal requirements point of view, the first operation
will create the product when the second process creates the requirement. That is, second
process pulls the production from the first process.

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Pull scheduling reduces the over production. Only the required amount is produced in every
stage. This will also allow the system to work with virtually no WIP. Altogether this makes a
manufacturing system with very high flexibility and no waste. Manufacturing system will be
very highly responsive to the customer requirements and will be closely related to the market
dynamics.
For the preceding process to produce the necessary quantity of parts that the following process
will pick up, all production processes must have personnel, equipment and materials that can
manufacture the parts “just in time.” If the succeeding process in irregular in its own quantity
and time, the preceding process must proportionately increase (or decrease) it’s output to
compensate for the irregularity. Costs, therefore, will rise.
Such irregularities must be minimized in large-variety, small-lot production. This is done, by
keeping the lots small to hold down the flow of identical parts. The mechanism for this is
“leveled production.” Since the concept of leveling is important in Lean Manufacturing, it will
be discussed in detail in the following section.

5.5. Push-pull System

Hybrid of “push” and “pull” strategies overcome the disadvantages of each system. Early
stages of product assembly are done in a “push” manner. Partial assembly of product based on
aggregate demand forecasts (which are more accurate than individual product demand
forecasts). Uncertainty is reduced so that safety stock inventory is lowered. Final product
assembly is done based on customer demand for specific product configurations.
Push-pull manufacturing system can be illustrated by the following example. Consider the case
of an ideal a vertically integrated textile mill ABC Ltd., which produced 100 percent cotton
shirting fabric manufacturer make greige yarn based on forecast; producing based on forecast
is push manufacturing strategy; and yard dyeing, weaving and remaining processing are
carried out as per actual demand of customers. This implies that the manufacturing system of
ABC Ltd. is divided into two parts. The Push system is the part of the ABC manufacturing
processes prior to weaving, while the Pull part is the part of ABC’s manufacturing that starts
with weaving and is based on actual customer demand. The famous fast fashion supplier Zara
also practice hybrid of push and pull manufacturing system.

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Garment Manufacturing Process Lecture handouts Wollo University, KIoT

Push-
“Generic” Product Pull
“Customized” Product
Boundary

Push Strategy Pull Strategy

Raw End
Materials Consumer
Supply Chain Timeline

Figure 1 : Hybrid of Push-Pull manufacturing system


3.1 Manufacturing system in Apparel industry
Fashion industry has short product life cycles, tremendous product variety, volatile and
unpredictable demand, long and inflexible supply processes. Therefore, it’s difficult to
understand what customers want and the market demands. The first stage in developing sup
ply chain agility takes into consideration what and how many products to produce, and what,
if any, parts or components should be produced at which plants or outsourced to capable
suppliers. These strategic decisions regarding production must also focus on capacity, quality
and volume of goods, keeping in mind that customer demand and satisfaction must be met.
Next, an organization must determine what their facility or facilities are able to produce, both
economically and efficiently, while keeping the quality high. But most companies cannot
provide excellent performance with the manufacture of all components. Outsourcing is an
excellent alternative to be considered for those products and components that cannot be
produced effectively by an organization’s facilities. Companies must carefully select suppliers
for raw materials. When choosing a supplier, focus should be on developing velocity, quality
and flexibility while at the same time reducing costs or maintaining low-cost levels. In short,
strategic decisions should be made to determine the core capabilities of a facility and
outsourcing partnerships should grow from these decisions.
The industry increasingly contracts out its production work to foreign suppliers to take
advantage of lower labor costs in other countries. In its place, a growing number of apparel

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manufacturers are performing only the entrepreneurial functions involved in apparel


manufacturing such as buying raw materials, designing clothes and accessories and preparing
samples, arranging for the production and distribution of the apparel, and marketing the
finished product.
One advantage the fashion industry has is its closeness to the market and its ability to react to
changes more quickly than its foreign competitors can. Also, as retailers consolidate and
become more cost conscious, they require more apparel manufacturers to move toward a just-
in-time delivery system, in which purchased apparel items are quickly replaced by the
manufacturer rather than from a large inventory kept by the retailer. Through electronic data
interchange—mainly using barcodes—information is quickly communicated to the
manufacturers, providing information not only on inventory, but also about the desires of the
public for fashion items.

5.6. Production strategies

The four identified production strategies are:


5.6.1. Flexible Manufacturing Strategy (FMS)
This strives to be responsive to consumer demand for small orders and short lead times.
Flexible Manufacturing Strategy means the capability to quickly and efficiently produce a
variety of styles in small production runs with no defects. Industry adopting this strategy
should effectively use the new technology and resources. In simple words the manufacturing
firm adopting this strategy will operate with the flexibility needed to meet the demands of its
consumers and the inherent ability to adapt immediate changes in the apparel market.
An important advantage of FMS is that it can change as and when the market fluctuates. The
FMS can also be changed to produce more or less of a product depending on the
requirement. This feature of FMS is what many manufacturers seek out when developing a
product. The FMS can also expand when a manufacturer is looking to expand. The FMS can
adapt to changes and new technologies as and when they are developed.
Traditionally, apparel chains work in response to the orders from distributors which are based
on the forecasts. In a dynamic industry like apparel industry, it is impossible to accurately
forecast the volumes and the product mix. This can result in high costs of stockout and

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carrying costs. Besides, forecasts in advance to the order of six months may not be able to
judge exactly the customer expectations. Another important point is that the individual
efficiencies in the systems don’t add up to overall efficiencies of the entire value chain. These
considerations across the textile apparel industry gave rise to the concept of Quick Response
system.
The adoption of QR requires major changes in the manufacturing planning and control (MPC)
systems. Firstly, every player in the chain needs to have an information system. Secondly,
computer-based systems are to be used in an integrated manner to accelerate planning and to
support manufacturing and distribution along the chain. New packages with better forecasting
models, frequent re-planning, precise shop floor control and technologies like CAD and CAE,
integrating design and manufacturing have to be used to build up better QR systems. The use
of FMS (Flexible Manufacturing Systems) is necessary for Quick Response. Modular type
production and Unitary production systems are some of the flexible production systems which
can be used.
5.6.2. Value-Added Manufacturing Strategy
This is a quick response strategy that focuses on eliminating any unnecessary operations or
handling that do not increase the value of a product which will lead to delay in production.
The rationale of this strategy is that each operation performed on a style should add value.
Operations such as inspection, bundling and sorting warehousing requires extra time, handling
and personnel but the activities do not add any value to the product. Any industry which
adopts value added environment needs to evaluate processes and find more efficient ways to
produce a product.
5.6.3. Agile Manufacturing Strategy
Agility is the dynamic ability of the firm to strategically use change as a vehicle to grow in the
new markets, with new products and to develop new competencies. It requires an openness to
change and flexibility to pursue change. The real strength of an agile manufacturer is its ability
to anticipate consumer needs and through innovation lead the emergence of new products.
5.6.4. Mass Customization
The goal of mass customization is to produce products that can be made-to-order rather than
made to plan. Products life cycle are short and the strategy requires processing single orders
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with immediate turn around. Considering the complexity of many apparel products and the
number of processes that a style may require, the equipment, skills, information and the
processes must be highly integrated. This may involve single ply cutting, single piece
continuous floor manufacturing and integral information technology.
Apparel consumers will soon have the opportunity to have garments fully customized
including style, fit, fabric and trim wit delivery direct to their home in a few days at a price
similar to the mass-produced garments. Body scanning technology will be the basis of custom
fit. A combination of computer aided design, single ply cutters, team-based assembly will
facilitate shipping the garment the same day it is ordered. Mass customization will reduce the
risk associated with trying to anticipate consumer demand months ahead of point of sale to
the ultimate consumer.

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