Managing Supply Chains Final Project On Style Textile Pvt. LTD (Nike Hoods)

Managing Supply Chains Final Project on Style Textile Pvt.
Ltd (Nike Hoods)
Table of Contents
Acknowledgements...............................................................................................................................3
Executive Summary...............................................................................................................................4
1. Project introduction.......................................................................................................................6
2. Company Information....................................................................................................................6
2.1 Covered Area...............................................................................................................................7
2.2 Location.......................................................................................................................................7
2.3 Product offerings.........................................................................................................................7
2.4 Company’s Clients.......................................................................................................................8
3. Generalized Supply Chain Model...................................................................................................9
3.1 Analysis of end-to-end supply chain............................................................................................9
3.2 Bowersox Supply Chain Model..................................................................................................12
4. Supply Chain Flows......................................................................................................................14
4.1 Material Flow.............................................................................................................................15
4.2 Information flow........................................................................................................................19
4.3 Cash Flow...................................................................................................................................22
5. Pipe Line Mapping.......................................................................................................................24
5.1 Process Activity Mapping (Highlighting Value)..........................................................................27
6. Style Textile Organogram............................................................................................................28
6.1 Proposed Supply Chain Organogram Style Textile...............................................................29
7. Gap analysis.................................................................................................................................32
8. Recommendations.......................................................................................................................33
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Managing Supply Chains Final Project on Style Textile Pvt. Ltd (Nike Hoods)
Table of Figure
Figure 1..............................................................................................................................................10
Figure 2..............................................................................................................................................12
Figure 3..............................................................................................................................................17
Figure 4..............................................................................................................................................20
Figure 5..............................................................................................................................................22
Figure 6..............................................................................................................................................25
Figure 7..............................................................................................................................................29
Figure 8 Proposed Supply chain organogram of Style Textile..........................................30
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Acknowledgements
“In the Name of Allah most Merciful and Beneficent ’’
We are thankful to ALMIGHTY ALLAH who provide us chance in learning the

modern concept, new enhancement of tools and technology that give us more
knowledge about how things happens in practicality by personally visiting the
company in making of this Supply Chain Final Project. We are also thankful to our
parents, guardians and experts whose prayers are with us in completing this project.
Apart from these we are thankful to our resource person, Mr. Asher Ramish, who
allow us to gain more experience, learning and motivate us by sharing with us his
deep knowledge of this Supply Chain Management course that keep us enthusiastic
in learning more and completing the job that he has given to us.
Acknowledgers
Fatimah Arshad
Irum Mehmood
Davar Mansoor
Hassan Ali Javed
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Executive Summary
This report is subjected to the course; ‘Managing supply chain’ and the purpose of
this report is to get clear understanding of how a supply chain actually works. The
company that we have selected is Style Textile Pvt. ltd. This is a garment
manufacturing company and exports garments to buyers like Nike. The product we
have selected is “Nike Hood “on which we have developed a complete supply chain
model.
The report is consisting of an end to end supply chain model which shows that how
raw materials originated and finally after value addition converted into a finished
good. This is shown by keeping the firm in the center, showing upstream and
downstream and breaking the process into 4 tiers on each side.
The next part is showing the flow charts of the organization processes. The charts
include process flow chart, cash flow, and information flow. All these flows are for
the same product but they are change in terms of their perspective. The other
important content of the report is the pipeline mapping, which is showing all the
processes from supplier to final customers along a pipeline. The purpose of this
mapping is to show that how much time is spend on each activity and where room
for improvement is available in terms of saving cost and time. Pipeline mapping
leads to the formation of a chart which shows that which activities are necessary and
value adding, which is necessary but non value added and which is totally non
value added.
The analysis of the production processes, the formation of end to end supply chain,
development of material, information, cash flows and drawing pipeline map help us
understand how production happens in actual in the industry and what are the
processes and channels which are used in the manufacturing . The organogram of the
organization help us to understand the hierarchy of the company that how authority
work orders flows.
The project gives us the clear understanding of the whole supply chain, including
the processes which are running inside the focal firm and linkage among all the tiers
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at the upstream end linking to the downstream end of the focal firm which consists
of the distributors and the customers.
By analyzing all the processes of manufacturing in the focal firm, we are able to
identify the gaps within the prevailing practices and processes by using the
knowledge of supply chain management and improvements are suggested in the
form of recommendations. The overall experience of the project was very
experiential which has led us to an increased knowledge.
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1. Project introduction
As the student of Supply Chain Management, we are assigned a work of
developing an end to end supply chain network for any company. The project must
contain the generalized supply chain model, all the flows that take place in the
company, including cash, information, material flows. Along with that we are
required to show processes through pipeline mapping and also highlight the value
added and non-value added activities.
The company that we have selected is “Style Textile (Pvt.) Ltd.”
1. Company Information
Style Textile (Pvt.) Ltd. was established in 1992 at Lahore, Pakistan, Style Textile is
another significant venture of the group. This is vertical unit produces the finest Knit
and boasts manufacturing facilities that are among the top most units in Pakistan.
Style Textile has in house Knitting, dyeing and finishing facilities. The garments mill
is well supported within house embroidery, printing and garment washing facilities.
It has four stitching units and the average production of each stitching unit is about
10,000 garments per day. Its workforce at present is more than 6000 employee. Its
average sale is more than US $10 million-US $50 million.
Style Textile is producing Knitted Sweatshirts, T-shirts, pools, Hood and jogging
pants in 100% cotton and polyester. They have in house facility of knitting different
type of fabric like single/double jersey, jersey with Lycia attachment etc.
The company always strives to provide values added garments for its customers
with high quality standards and competes in the international garments industry of
quality, price and services with the capacity of producing 750,000 garments per
month, the company is considered amongst the key garment exporters of the
country.
Style Textile is one of the leading suppliers in the world for Nike, Levi’s, Russell
Athletic, Phillips Van Heusen (PVH), Carhartt and Victoria’s Secrets amongst others.
It has also worked with brands like Tommy jeans/ Hilfiger, Adidas and Reebok etc.
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Style Textile aim is to satisfy its customers in quality of the garments and with in
time desired, with cost effectiveness. The preference is given entirely to the buyer as
every garment is designed according to the satisfactions given by the buyer.
The strength of the company is a well qualified, professionally sound and highly
motivated management. The entire work force is dedicated towards their work and
is committed on producing quality garments within the time specified by buyer.
2.1 Covered Area

Style Textile occupies an area above 100,000 square meters, consists of production
area, main office, car parking, security office etc. Style Textile atmosphere of the
factory is neat and clean. Each department is facilitated with good furniture, clean
atmosphere, neat washrooms and above all good working environment.
2.2 Location
Style Textile (Pvt.) Ltd. headquarter is located at 126/3, Kot Lakhpat Industrial Area,
Lahore. It is the business area where transportation resources are easily available
and cheaper labor. The factory is located in the competitive environment, where
many other reputed factories are located like Shan Factory and Prince Fabrics (Pvt.)
Ltd. etc.
2.3 Product offerings

o Jogging Pants
o Hoods
o Trousers
o T-Shirts
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2.4 Company’s Clients
Nike
Levi’s
Russell Athletic
Phillips Van Heusen

(PVH)
Carhartt
Reebok
Adidas
Tommy Jeans / Hilfiger
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2. Generalized Supply Chain Model
3.1 Analysis of end-to-end supply chain

End to end supply chain model of “Style textile” shows the supply chain from
the beginning to the end points, which is connecting the fourth tier of supplier with
the fourth tier of the customers from one end to other end.
The end to end supply chain of Style textile starts from the suppliers of each
product who are supplying the raw materials to the style textile (upstream), in order
to make the hoods for Nike, while the ending point of the supply chain are the
consumers who consume the final product i.e. Nike hood (downstream).
We have divided the whole upstream into four segments. Each segment is
showing the processes which are Knitting, Dyeing, Manufacturing of hoods and
packaging. Then tiers are made of each product which is used in the above
mentioned processes which is shown in the end to end supply chain model.
Up Stream Processes and their tiers:
Knitting: For making the hoods the first and most important it the yarn (1 st Tier).
Yarn is procured from the local spinning mills in the form of cones (2 nd Tier). These
spinning mills process these cones from the Cotton (3 rd Tier) and the cotton comes
from the Farmer (4th Tier).
Dyeing: The 2nd important process is the dyeing of yarn for making the hoods, and is
done by the colored dyes (1 st Tier). The dyes are made of two types the reactive dyes
and the dispersed dyes (2nd Tier). These two dyes are further composed of
Chlorotriazine reactive, Monoazo hromophore (reactive) and Amino 3 and Nitro 5
(dispersed) (3rd Tier) which comes from the laboratories. Similarly, the chemicals to
aid dyeing process are also there. These chemicals are procured from the local
manufacturers.
Manufacturing: Manufacturing is one of the most critical processes of the upstream

supply chain as it includes several numbers of inputs. Although yarn in also an
input, but as it is already described separately above, we will discuss here only other
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inputs. The other inputs include stitching thread, Zipper, Draw Cord, Labels,
embroidery threads (1st Tier). These are further derived from their foreign
manufacturers (Germany).
The stitching thread is composed of poly cotton, embroidery thread is made up of

metallic thread (2nd tier), the other items are imported from Germany, and then
further poly cottons is made up of polyester and cotton, metallic thread is made up
of binding filaments and ores, draw cord is made up of metallic tip and cotton, and
Zip is made of stringer, slider and fabric (3 rd Tier). In the same way these items are
made up of their 4th tier.
Packaging: soon after the hood is stitched, the next process is of packing the hoods.
For packing the material used is poly bags, cartons and bar code stickers (1 st Tier).
The poly bag comes from the local manufacturer, and carton is made from the Craft
paper and bar codes are made by stickers and printing (2nd Tier).
Local manufacturers use ‘dana’ for making the poly bags, craft paper is made of
corrugated sheets and stickers are derived by using glaze papers, glue and bar code
printing machine (3rd Tier). All the suppliers of 3rd tier use the raw materials that
constitute 4th Tier of the Supply chain.
Down Stream Processes and their tiers:
The downstream processes are quite simple as compared to the upstream. After the
focal firm produces the Hoods, they are sent to the LSP (Logistics Support Provider)
in Karachi. The LSP are APL for America region and Damco for Europe region. They
store the finished goods for some time and then send to Nike warehouses in the
specified regions. From there the distribution system of Nike Further send the
finished goods to the retailers and eventually the Hoods reach the final customers.
Figure no.1 below shows the generalized Supply chain of Nike Hoods Made by Style
Textile Pvt Ltd.
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Upstream Downstream
Focal Firm
4th Tier 3rd Tier 2nd Tier 1st Tier 1st Tier 2nd Tier 3rd Tier 4th Tier
Bags of cone from Kni FO

Farmer Cotton Yarn Warehouses
spinning mills ttin
g
UR
Laboratory Monoazo hromophore STY Chicago
Reactive Dye Dye
Laboratory Chlorotriazine reactive ing LE Illinois
Dye TEX Rockford
Laboratory Amino (3) APL (U.S.)
Dispersed Dye TILE
Houston
Laboratory Nitro (5) S Texas
UNI San Antonio
Laboratory Kreinick metallics Local Manufacturer Chemical for Dye
TS
Seattle
Farmer Ma
Cotton
nuf Washington Port angeles
Ethylene (Alcohol) Poly Cotton Stitching Thread
act
Polyester uri Olympia
APL (U.S.)
Dimthyl Terephthalate ng
of Newyork City
Stainless steel Stringer Import from
Zipper Ho Newyork
Hong-Kong
ods Logistic support Rochester
Zinc Slider
provider
Fabric Import from Label
Yarn
Hong-Kong
Rotterdam
Farmer Cotton DAMCO (Europe) Netherlands
Import from Draw Cord Almere Stade
Hong-Kong
Zinc Metal for Tip
Oostende
Melt Flow (MFI) Blending filament Belgium
Metallic Thread Embroidery Thread Lakdal
Mine/Oars
Import Dana Local Market Poly bag Pac

Bringhton
kin DAMCO (Europe) England
Waste Paper Corrugated Sheet Craft Paper Carton g
London
Plain paper Glaze paper

Calaris
Animal Tissue Glue Stickers &Print Bar Code sticker France
Le Havre
Printed bar codes
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Information and Planning
Figure 1
Generalized Supply Chain Model of Nike Hoods Style
Textile
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3.2 Bowersox Supply Chain Model

The Bowersox supply chain model represents the whole integration of all the
processes from one end to the other end. It also shows information, knowledge and
processes are integrated and interrelated to each other. The more the integration
increases, the relationship between these processes also increases.
Supplier side or supplier network of the model are showing that which
product/material is used for the manufacturing of the next product in the whole
process of manufacturing. The integrated firm is in the middle of the supply chain
which is showing that all the departments are also interrelated to each other with the
help of Management information system (MIS) software.
Downstream side of the model is showing that all the retailers and
warehouses are interrelated to each other, they are then linked with the buyer’s
agents and buyer’s agents are interlinked with the company.
All the above mentioned entities are interlinked with each other in order to
make every process value added and collaborative. This model is also showing that
how the suppliers are integrated with the manufacturer (style textile) and how the
manufacturing firm is integrated with its own departments. This all integration
shows the final integration between the supplier network and the distributor’s
network.
The Bowersox model of style textile is shown in the fig. 2
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Relationship Management
Information, Product, Service, Financial and Knowledge Flows

Supplier Network Nike hoods
Bags of cone from Kni

Cotton Yarn
spinning mills ttin
g
Monoazo hromophore Distributive
Reactive Dye Dye Integrated Enterprise
Chlorotriazine reactive ing
Dye
Amino (3) Buyer’s
Dispersed Dye Retailer
M Nitro (5) Procurement
warehouse 1
E
A Kreinick metallics Local Manufacturer Chemical for Dye
Production Supply chain
Buyer’s
warehouse 2
Retailer N
T Cotton Ma D
Poly Cotton Stitching Thread nuf APL Logistics Retailer
E Polyester act
uri
(U.S. division) Buyer’s
warehouse 3
MIS Retailer C
R
ng
HR & Admin Import/
Stringer Import from
Zipper
of
Export Buyer’s O
I
Hong-Kong Ho warehouse 4
Slider ods Retailer N
A Fabric Import from
Hong-Kong
Label
Buyer’s
warehouse 1
S
Retailer
Finance PPC
U
L Cotton
Import from Draw Cord Buyer’s M
Hong-Kong
S
Knitting
Metal for Tip
& Dyeing Damco Logistics
warehouse 2 Retailer
E
Blending filament
(U.S. division)
Buyer’s
Retailer R
Metallic Thread Embroidery Thread
warehouse 3 S
Retailer
Dana Local Market Poly bag Pac
kin Buyer’s
g warehouse 4
Corrugated Sheet Craft Paper Carton Retailer
Glaze paper
Glue Stickers &Print Bar Code sticker Figure 2
Printed bar codes Bowersox Model of Style Textile

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3. Supply Chain Flows

Supply chain management (SCM) is the oversight of materials, information, and
finances as they move in a process from supplier to manufacturer to wholesaler to
retailer to consumer. Supply chain management involves coordinating and
integrating these flows both within and among companies. It is said that the ultimate
goal of any effective supply chain management system is to reduce inventory (with
the assumption that products are available when needed).
Supply chain management flows can be divided into three main flows:
The product/material flow: The product flow includes the movement of goods from
a supplier to a customer, as well as any customer returns or service needs
The information flow: The information flow involves transmitting orders and
updating the status of delivery.
The finances flow: The financial flow consists of credit terms, payment schedules,
and consignment and title ownership arrangement.
There are a few commonly used symbols which are used to draw the flows.
Operation Decision
Transfer Delay
Quality Check arrow shows next step.
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4.1 Material Flow
This is the Process Flowchart of style textile of the product “Nike Hoods”. Here is a
brief description of every process by each step in the manufacturing of Hoods.
The process starts from the order originated from the buyer (Nike) to the
Yarn (input): Style textile manufacturing process start with yarn procurement. They
purchase yarn spools from local spinning mills. After the yarn procurement, it is
transferred initially to the yarn store for a short period of time, after that it is
transferred to the Knitting department.
Knitting: In this process the yarn are placed on the rods and in a way that they have
to be attached with 90 needles where the process of making fabric has to be done and
automatically the fabric rolled down in the machine. If any thread has broken down
the whole process stops and the machine alarmed and red light glows. When the
fabric is made then quality of each roll of fabric is checked. The passed rolls of fabric
are then moved to the “ecru fabric” store.
Fabric Storage: the rolls of fabric whose quality are approved are then moved to the
fabric store, here the lot numbers and specification of the fabric is written on the tags
and tags are then applied on each roll. Rolls are then weighted and then moved to
the dyeing department.
Dyeing: After weighing, Rolls are then transferred to the dyeing department. Each
roll is dyed as per the requirements of the lot size with the help of dyeing machines,
which are programmed to dye the fabric on certain density of colors. When the
fabric is dyed then its quality is checked on the Q/A checking machine.
Erasing: To make the fabric fluffy for the manufacturing of hoods, the fabric is
processed with the erasing machines, which pluck out the thrones from the fabric
Ecru Fabric Storage: After the dyeing the dyed rolls are then moved to the ecru
fabric store where rolls are again weighted and tagged as per the lot numbers.
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Cutting: From the Ecru fabric store the fabric for Hoods comes in this department
where spreading is done manually as well as automatically. Manually the workers
spread the whole fabric over the spreading table and make a pile of about 60 fabrics;
then they place a pattern design paper on it. In each pattern design three patterns of
hoods has made on it. It saves time and increase the rate of accuracy of making.
And in the case of automatic the spreader machine place the fabric one after the
other on the spreader table and the whole process goes same.
Sorting/ bundling: After the fabric is cut in the required sizes and shapes, it is
bundled and segregated. The clothes for printing and embroidery are separated and
the remaining is send to the stitching dept.
Printing/Embroidery: The clothes for printing and embroidery are then sent to the
respective dept. and from there the clothes are transferred to the stitching dept.
Stitching: The clothes are then stitched into final hoods and along with that the
quality is checked after almost every step.
Pressing or Finishing: After making apparel it is to be pressed by the Compressed

Machine in order to bring it in bale form for export. After the finishing products they
must label the Nike hoods that match the information which was provided by the
management. Specifically:
1. All Nike hoods will have a sticker on the inside back, and for original Nike five
stickers must be checked.
Packaging: In this process packing has to be done in the following ways. Exterior
labels, tagging, folding, bar code snickering and wrapping. Hood is then packed
with a layer of thin latex plastic material to make it secure and safe. After
segregation of Nike hoods; finally the cartooning is done.
Inspection: In each step the quality assurance has to be checked and if any fault
occurs then it goes to their related departments otherwise proceed further.
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Finishing: finally finishing department again rechecked and if any type of fault
arises then the product goes to their departments to fix it, before the delivery of the
product the buyer agent visited the factory and rechecked the material before the
payment.
Dispatch or Delivery: This is the last section of the Nike hoods process and in this
stage the Nike hoods are being sent to the LSP.
Fig. 3 shows the detailed material flow.
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Material Flow Knitting Quality

Yarn Check
Yarn store
Fault Found Fault Found If No
If Yes
Quality Drying Dyeing Fabric Store

Check Fabric
If No
If Yes
Ecru Fabric Store
Erasing Fabric Rolls Cutting
Manually
Spreading
Automatic
Embroidery/Printing Embroider
y
Quality
Cutting Segregation
Check
Accessories store Printing
Accessories Fault Found

If No
If Yes
Inspection Sewing/Assembling Sorting/Bundling

Stitching Bundles
If No Fault Found Waste
If Yes If No
Qualit If Yes
Pressing Finishing y Packing Cartoning
Check
Figure 3 Dispatch Finished

goods
Material Flow of Nike Hoods Style warehouse
Textile
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4.2 Information flow

Information flow is one of the most important flows of the sully chain Management,
along with the flow of materials the information also flows along them. Following is
the description of the information flow.
Order placement: The process of information starts from placing the order by the
buyer. As we know that Nike is the buyer, so it places the order to the company
Merchandizing department.
Generation of L.C: The buyer’s bank at the same time generates the letter of credit
and send to the import export department of Style Textile.
Order received: The merchandising department finalize the order after negotiations
with the buyers and confirm the contract. Complete order is transfer through the
web-based software of Nike to the Systems of the company.
Order transfer: Merchandizing dept. after getting the complete order, transfer it to
the Production planning and Control dept.
Information spreading to dept.: Production planning and control department then

plan the production plan and send to the respective departments like procurement
department, production department, and import export department.
Procurement dept.: After the estimates of quantity and quality of raw materials is
received from the PPC, the procurement department call their supplier and places
order for the required raw materials, the suppliers include the Yarn suppliers(local
spinning mills), chemicals suppliers (local firms), dyes & accessories
suppliers(Germany).
Yarn is received first of all and is sent to the yarn store. Every time the material is
stored in the warehouse, an entry is done into the ERP System which contains all the
information about the materials like price, date of entry, specifications of the
materials, and the purchase order no. of the Buyers order for which they are being
procured. Similar process occurs for the chemicals, dyes, and other accessories.
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Production department: When the raw materials are received by the procurement
department, they inform the production department. The production dept. then
issues the requisition to store to release the yarn to knitting department, the yarn
store issues the yarn and after receiving the items, production department issues the
Goods receipt note (GRN) to the stores. The same procedure is repeated every time
when materials from the stores are needed.
Import export dept: The import export department also works in parallel to the
other department, and as per the quantity mentioned by the PPC; they contract with
the containers/truck suppliers.
Manufacturing starts: mean while as the raw material is received, the production
process starts and all the specifications of the order (size, color, quantity etc) are
transferred to the production units.
Final audit: After the Production is done, the buyer’s agents do the final audit and
then a final packing list is generated.
Packing list transferred to Import/Export department: the final list of the finished
goods is generated and sent to import export department, who calls the containers
according to the quantity mentioned.
Dispatch: After the container arrives and loading is done, a gate pass is generated
and a copy of gate pass is given to the truck driver. The gate pass contains the
information about the finished goods. Information includes the delivery destination
and personnel, the date and time of dispatch and estimated time and date of
delivery.
Fig 4 Shows the Information flow of Nike Hoods Style Textile.
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Buyer opens LC in the name

Import export dept. waits for
Buyer Places of Style Textile
the order to complete
Order
Order is generated with
the help of ERP and Order received by Information
sent to the company’s company flows according
system merchandising dept. to the p.o
PPC Dept. plans the entire production plan in term of

quantity, time and processes & informs other dept.
Merchandising department
informs PPC
Procurement dept. Places order to

different suppliers and generate P.O for Production dept. issues order to knitting, dyeing,
each item cutting and stitching dept.
Send p.o to Send p.o to Send p.o to packing Send p.o to Contract with the
Yarn supplier chemical Supplier material supplier Accessories Supplier truck providers for
carrying material to
Karachi
 Material received and payment to Department’s issues requisition to
supplier is released stores in return issues goods receipt
 Material recording is done at every note (GRN) Call the truck for
store. dispatching the
 Information is sent to the production finished goods
according to lot
size
Knitting design is given to Color specification is Cutting design is given to Stitching spec. are given to
knitting department according given to dyeing dept cutting dept. according stitching dept.
to P.O according to P.O to P.O
Packing list is
received by to export
dept.
Labels and bar After audit of buying

Generation of gate pass
code stickers are agent, final packing
containing
pasted to the list is generated
specifications of goods
Copy of gate pass is given to the truck driver &
material dispatched to Karachi (LSP)
Figure 4
Information flow of Nike Hoods
(Style Textile)
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4.3 Cash Flow

Buyer (Nike) opens L.C. in the name of style textile; payment is then received by
style textile by L.C. Bank is then involved and L.C. is converted into cash. Then
finance department is involved by the company in order to make payments to the
suppliers and other expenses of the company.
Finance department along with the procurement department then decides how
much funds are to be allocated to each of the department for the further processes.
Pay orders are made and sent to the yarn, material, chemical and accessories
suppliers. Suppliers then make payments to their respective manufacturers in order
to procure the raw materials for inputs.
Chemical for the dyes are imported from Germany, so the procurement department
involves the finance department to make payments to the German supplier of
chemicals. Finance department involves bank to open L.C. in the name of the
German supplier. Supplier bank receives the payment by L.C. and bank pays the
payment to the supplier after documentation. The supplier then pays to the chemical
manufacturer and product is then manufactured.
Fig.5 explains the cash flow of Nike Hoods, Style Textile
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Cash Flow
Buyer opens L.C. in the

name of style textile
Payment Received from Payment Received at

Buyer (Nike) Through L.C. Bank account of Style
Finance Department
(F.D.) Receive Cash
Funds allocated to relevant

suppliers by F.D.
Send p.o. to Send p.o. to Send p.o. to Yarn Send p.o. to

Accessories Chemical supplier Material supplier
Cash transfer to Cash transfer to Cash transfer to Cash transfer to

the accessories the Chemical the Yarn the material
manufacturer manufacturer manufacturer manufacturer
Send P.O. to the bank of

chemical supplier Germany
Bank opens L.C. in Supplier’s bank receives

the name of supplier payment by L.C.
Payment transferred to Payment received by

the chemical manufacturer chemical supplier
Figure 5
Cash Flow for Nike Hoods
Style Textile Pvt Ltd
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4. Pipe Line Mapping

Pipeline mapping is a tool which is used to show the processes with respect to time
they take, the value added and non value added activities the firm undergo. The
pipeline mapping of style textile is showing the time in the production, delays and
time consumed in taking orders from the customer.
Merchandizing department receives the order from the customer (Nike) after
negotiations with the production department and then negotiates with the customer
regarding the lead time of the order delivery. The information is then conveyed to
the PPC department for the further processes. This whole process takes 8 days to
complete.
After receiving the information and specifications of the order, PPC department
plans that by using which resources and time the order needs to be fulfilled. The
department also forecasts the next upcoming demand based on the previous data
and current order and then plans accordingly. Then the information is conveyed to
the relevant departments by PPC regarding the order. This process takes 5 days. All
the processes start simultaneously to each other when their respective inputs are
available.
Procurement department send purchase orders to all the suppliers which takes 1
day. After sending the orders, the material is received in the average time of 10 days
as the forecasted demand is already been shared with the suppliers for the next
upcoming orders. The raw material is then stored in the stores for nearly 16 days till
the completion of the documentation and yarn received. When the yarn is procured
then it is stored in the yarn store for nearly 2 days so that order quantity is
completed and proper production is started by the production department. Knitting
of yarn to the fabric takes 12 days. When yarn is converted into the fabric then it is
stored in the fabric store for approximately 1 day then it is moved for dyeing.
Dyeing process takes approximately 8 days. After the dyeing the dyed fabric is
stored in the ecru fabric store for approximately 3 days, where the fabric is weighted
and lot number and specs are tagged on each dyed roll of fabric.
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The dyed fabric is then moved to the cutting department which takes into account
approximately 6 days to complete the cutting of whole lot. Then work on cut pieces
are done in the cut work store which consumes 2 days as segregation of pieces are
done in the store which are to be printed or embroided.
The pieces are then moved to the printing/embroidery department, the process of
embroidery/printing takes approximately 3 days. Then it takes approximately 1 day
to make the bundles of the printed/embroided pieces.
The bundles are then moved to the stitching department which takes 15 days to
complete, including all the processes of stitching (Assembling, Q/A check, finishing,
ironing etc.). Final audit requires 1 day as the lot is audited by number of samples.
After the final audit, hoods are packed which takes 4 days including poly bag
packing and cartooning. When the Hoods are packed then they are moved to the
finished goods store. The goods are stored for approximately 3 days, till the lot size
is completed.
The goods are then transferred to the buyer’s out bound logistics department. When
the lot size is completed then the hoods are dispatched to Karachi which takes 7
days. When the goods are received in Karachi, they are stored in the LSP warehouse
for 3 days for the shipment to the desired region (U.S.A. or other Europe region).
The goods are then shipped to the desired location, which takes 28 days in transit.
When the goods are received by the buyer and are handled by the buyer’s inbound
logistics department. The goods are stored for nearly 35 days in the warehouse then
they are distributed to the stores. The distribution requires 15 days all over the
distribution points. Then the goods are stored in the stores for app 15days.
The total number of days for the process cycle of Nike hoods is 188 days or 26 weeks
app. While total number of days required for the production are 48.
Fig. 6 shows the complete Pipeline mapping along with the value adding activities
as well as non value adding activities (vertical lines).
26
Days of production=48 (35) Days
E
Suppliers
Number of days in process

cycle=188
(16) Days
N
(15) Days
D
(3) Days
Emb.
/Printing
(3) Days (3) Days
C
U
(3) Days
(1)
Day Dispatch;
(2) Days (2) Days Shipped to Shipped to
S
Karachi (7) USA & Distribution
Knitting Dyeing Cutting (1) Day Stitching (1) Day Packing
Days Europe (28) (15)
(12) Days (8) Days (6) Days (15) Days (4) Days
Stores
T
(1) Day Acc. & Fabric Ecru Bundling Final Finished LSP
(5) Days  Purchase

order sent
Chemical
Storage Yarn
Store Fabric
Store Cut work
store
Audit goods
store
warehouse
Buyers
warehouse
O
to suppliers Storage storage in
(8) Days (10) Days
 Dyes,
different
regions
M
chemical  Stitching
 Forecasting
& acc.
Received


Q/A Check
Finishing
E
 Order Receiving  Planning  Ironing
 Negotiation
 Inform PPC
 Convey info.
to relevant
 Final finishing
 Labeling
R
depts. Process Time is
15 Days & storage
Process Time is 48 Days. Waiting time 13 days Process Time is 35 Days. time is 50 days
Process Time is Process Time is Process Time is
8 Days 5 Days 11 Days Storage time is 3 Days
Merchandizing Production Procurement Production Company out Buyers inbound

planning & Bound Logistics logistics
control (PPC)
Figure 6
Pipeline mapping of Nike Hoods, Style Textile Pvt Ltd
27
5.1 Process Activity Mapping (Highlighting Value)

By process activity mapping, all the activities regarding the manufacturing
of the product are identified, whether they are adding value to the overall supply
chain or not. The activities are being identified as value added (VA), non-value
added (NVA) and necessary but non value added (NNVA).
S No Steps Value
1. Order placement from buyer NNVA
2. Negotiation and contract with the buyer NNVA
3. Order transferred to PPC VA
4. PPC transfer order to procurement, production, import export etc VA
5. Yarn procurement VA
6. Yarn storage NVA
7. Knitting VA
8. Fabric inspection NNVA
9. Fabric store NVA
10. Dyeing VA
11. Dyeing quality check NNVA
12. Ecru fabric store NNVA
13. Cutting VA
14. Embroidery VA
15. Metal detection NNVA
16. Printing VA
17. Bundling VA
18. Stitching VA
19. Pressing/ironing VA
20. Quality check NNVA
21. Tagging NNVA
22. Tapping/finishing VA
23. Packing VA
24. Cartoning VA
25. Finished goods store NVA
26. Dispatch NNVA
27. Handover to LSP in Karachi NNVA
28. Finished goods shipped to USA & Europe NNVA
5. Style Textile Organogram

CEO is the head of the company, one director is reporting to him, and director is
responsible for different departments which are responsible for reporting to director.
Administration, HR, Finance, R&D, Supply Chain and production is reporting to
28
director. Administration, Production and finance department are headed by General

Managers; HR and R&D are headed by Deputy General Managers, and Supply
Chain is headed by Senior General Manager.
Different departments come under supply chains which are procurement,

merchandising, import & export, PPC, and engineering, these departments are
responsible to report head of supply chain. Merchandising and Import & Export are
headed by General Managers, Procurement and Engineering dpt. are headed by
Deputy General Managers and Production Planning Control (PPC) is headed by
Assistant Manager. There are different departments which are reporting to
production department head; these departments include Garment 1&2, Garment 3,
Garment 4, Knitting, Dyeing, Printing, Industrial Engineering (IE) and MIS.
Garment 1&2 and Garment 4 are headed by General Managers, Knitting, Dyeing and
Printing are headed by Deputy General Managers, Garment 3, Industrial
Engineering and MIS are headed by Managers. Under the umbrella of production
and supply chain department there are different departments those are reporting to
production and supply chain.
“These departments have different number of managers, assistant managers (AM),

supervisors, workers and helpers according to their requirements. In this hierarchy
helper is reporting to worker, worker is reporting to supervisor, supervisor is
reporting to assistant manager, assistant manager is reporting to manager, manager
is reporting to deputy general manager, and deputy general manager is reporting to
general manager, according to different hierarchy levels of departments.
5.1 Proposed Supply Chain Organogram Style Textile

We recommend a change in the organogram which is to make Production
department a part of supply chain department. So along with the original
organogram, we have also proposed a new organogram.
Fig. 7 shows the original organogram where as fig. 8 show the proposed organogram
of Style Textile.
29
Figure 7
Supply Chain Organogram of Style Textile
30
Figure 8
31
Proposed Supply chain organogram of Style Textile
32
6. Gap analysis
During our visit and interview with the company representative, we came to know
that company faces different types of problems while executing the production
processes.
 The first problem that they encounter is the alternation of order from the
buyer, when the production is in progress. Sometimes it happens that the
buyer order a slight change in the design of the garment when the production
process is going on. In order to cater buyers demand, the production
department has to redo the work some times, which causes the normal
process to delay. This also leads to longer lead times than normal.
 The other problem that the company faces is from the raw material supplier’s
end. Raw material is purchased by two types; they import some items from
Germany as well as buy as from the local market. Both suppliers some time
delay in their delivery. The suppliers from Germany become late because of
the unavailability of air cargo. And the local supplier delay because of gas
and electricity load shedding.
 The 3rd problem arises due to the non availability of gas and electricity in the
factory itself. The dyeing process is on large stake due to this. During dyeing,
if gas load shedding occurs, its stops the boilers and the processes cool down.
Due to this the dyeing color becomes spoiled. The color of the one same lot
becomes different due to different temperature of the boiler, thus causing all
the lot to go to waste. Similarly the cutting and stitching process delay due to
electricity load shedding.
 The other problem that the company sometimes faces is the worst political
situation of Karachi. As they send their finished goods to Karachi the delivery
time sometimes delay because of strikes in the city.
 One other problem that the company is facing now days is the lack of order
from different buyers. These days only NIKE is placing order and if in any
case they stop ordering, the company would suffer a great loss.
33
 One of the major problem lies in the processes of the company, Company
believes in the just in time (JIT) processes but they are unable to implement
the JIT concept in all their processes which increases unnecessary delays in
the processes, resulting in the increased lead time and increased cost.
7. Recommendations
In order to overcome the problems that are being identified in the gap analysis, we
suggest a few recommendations.
 Applying Demand Collaboration model:

In order to over the unpredictable demand change, the company should
devise procedures in which Style textile should be in direct contact with the
buyer. As soon as they buyer change the demand, the company immediately
calculate the new time and inform the buyer with details. This action could
only be achieved when both buyer and suppliers are in constant contact, the
essence of supply chain.
The same recommendation is for the company’s raw material supplier, the
close contact is required. Along with that the production, planning and
control department should plan the time keeping in view the expected
problems. Although this problem occurs seldom, still a buffer time should be
build.
Inventory Management Systems
 The items like needles, scissors, chemicals for dyeing, that are used generally,
irrespective of the order should be ordered by maintaining a constant ROP to
avoid any time loss due to their unavailability.
Building Customers Relationship
 The company should try to maintain the relationship with buyers and device
ways which make them close together. Along with that they should
constantly look for new and different buyers, in order to avoid the loss the
company if NIKE stops giving orders in future.
34
 Overall the company has four different units and a large setup; they should
go for their own power plants in order to generate energy for their production
instead of burning wood for making fuels.
Collaboration among interlinked departments within the unit
 In order to improve the processes and work fully on JIT model, company
should focus on the collaboration among all the departments within the
manufacturing unit because each department is providing input for the next
department.
Inputs are being stored in different warehouses/stores while they should be
transferred to the next relevant departments when the processing in one
department is complete. When the delay is coming in one department and
inputs for the next process are being stored in warehouses then unnecessary
lead time adds in the next process which increases the lead time for the next
process and whole supply chain suffers.
This would only be possible when all the departments are interlinked with
each other and collaboration is among all the departments within the focal
firm.
35

Managing Supply Chains Final Project On Style Textile Pvt. LTD (Nike Hoods)

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Managing Supply Chains Final Project On Style Textile Pvt. LTD (Nike Hoods)

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Managing Supply Chains Final Project on Style Textile Pvt.

Ltd (Nike Hoods)

“In the Name of Allah most Merciful and Beneficent ’’

We are thankful to ALMIGHTY ALLAH who provide us chance in learning the

Hassan Ali Javed

The company that we have selected is “Style Textile (Pvt.) Ltd.”

2.1 Covered Area

2.3 Product offerings

2.4 Company’s Clients

Phillips Van Heusen

Tommy Jeans / Hilfiger

2. Generalized Supply Chain Model

3.1 Analysis of end-to-end supply chain

Up Stream Processes and their tiers:

Manufacturing: Manufacturing is one of the most critical processes of the upstream

The stitching thread is composed of poly cotton, embroidery thread is made up of

Down Stream Processes and their tiers:

Bags of cone from Kni FO

Import Dana Local Market Poly bag Pac

Plain paper Glaze paper

Information and Planning

3.2 Bowersox Supply Chain Model

Information, Product, Service, Financial and Knowledge Flows

Bags of cone from Kni

Glue Stickers &Print Bar Code sticker Figure 2

Printed bar codes Bowersox Model of Style Textile

3. Supply Chain Flows

Quality Check arrow shows next step.

4.1 Material Flow

Pressing or Finishing: After making apparel it is to be pressed by the Compressed

Fig. 3 shows the detailed material flow.

Material Flow Knitting Quality

Fault Found Fault Found If No

Quality Drying Dyeing Fabric Store

Erasing Fabric Rolls Cutting

Accessories store Printing

Accessories Fault Found

Inspection Sewing/Assembling Sorting/Bundling

If No Fault Found Waste

Figure 3 Dispatch Finished

4.2 Information flow

Information spreading to dept.: Production planning and control department then

Fig 4 Shows the Information flow of Nike Hoods Style Textile.

Buyer opens LC in the name

PPC Dept. plans the entire production plan in term of

Procurement dept. Places order to

Labels and bar After audit of buying

4.3 Cash Flow

Fig.5 explains the cash flow of Nike Hoods, Style Textile

Buyer opens L.C. in the

Payment Received from Payment Received at

Funds allocated to relevant

Send p.o. to Send p.o. to Send p.o. to Yarn Send p.o. to

Cash transfer to Cash transfer to Cash transfer to Cash transfer to

Send P.O. to the bank of

Bank opens L.C. in Supplier’s bank receives

Payment transferred to Payment received by

Style Textile Pvt Ltd

4. Pipe Line Mapping

Days of production=48 (35) Days

Number of days in process

(5) Days  Purchase

Merchandizing Production Procurement Production Company out Buyers inbound