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GRADUATION PROJECT ON

TOPIC:

LEAD TIME COMPRESSION FOR SEARS AND


KMART PRODUCTS IN VENDOR FACTORY

PROJECT MENTOR: RAM SUBMITTED BY:


MOHAN SIR
SHARVARI
INDUSTRY MENTOR: MAX SHANKAR(21)
POIRET SHREYA SAVARN (23)
INTRODUCTION

Meenu creation LLP is a designated vendor for Sears and K-


mart products in the category of womens woven styles and
recently done few Kids wear styles.

Sears started it business with Meenu Creation LLP in 2015.

This factory is specialised in womens casual wear, party


tops, skirts and lowers in woven category and recently
started kids wear and knits top for women.
MEENU CREATIONS LLP:
COMPANY PROFILE

The company is a property of Anil Peshawari, a qualified


Chartered Accountant, and the Founder and Managing
Director of Meenu Creations and a speciality for business in
womens woven tops and bottoms. Meenu creations was
started in year 1999.

Turn over is about 31 million dollars.

Factory Manager- Mr. Tarun Ahuja


MEENU CREATIONS LLP:
PRODUCTION MIX

Meenu Creation uses an assembly line system.

They use assembly line system because they receive


different type of value added order from different buyer, so
assembly line system is helpful for handling of this type of
orders, because every style has different number of
operation, so the arrange assembly lines according to need
of style.

A total of 16 line with a daily output of 800 pcs per line is


functional.
MEENU CREATIONS
LLP:PRODUCTION
MIX

Meenu Creation uses an assembly line system.

They use assembly line system because they receive


different type of value added order from different buyer, so
assembly line system is helpful for handling of this type of
orders, because every style has different number of
operation, so the arrange assembly lines according to need
of style.

A total of 16 line with a daily output of 800 pcs per line is


functional.
CLIENTS
STRADIVARIUS BY ZARA
SEARS
KMART
PINKIE
H&M
TRUFFLES
KIABI
ORRASY
HOSS
NEXT
QUELLE
METHODOLOGY

Firstly, We did the identification area to work upon,


determined the problem areas.

We collected the Data that consist of primary and


secondary data. Within primary data, we interviewed
concerned people and also did quantitative and qualitative
research followed by review of literature obtained from
books, internet and knowledge gained from classroom
study and review of papers and journals on the same.
Further, we analysed the data. The technique we used was
benchmarking process for which we visited other factories
for this purpose.

Lastly, We came up with results and possible solutions.


AREA OF STUDY- Meenu creation pvt ltd.

NATURE AND SOURCE OF DATA- Data is collected from


interview method and backward history analysis and we
would also use benchmarking technique to evaluate certain
parameters within the data.

METHOD OF DATA COLLECTION - The data has been used


which is collected through interview method and Quality
reports of previous styles at Meenu creations and internet.
Also, did a benchmarking practice. Visited Radnik and
Bhumika.

SAMPLING METHOD- Analysis of 60 Purchase order as far for


this data is available we would be Considering these Pos.
We have used convenience sampling method.

SAMPLE SIZE- 60
WORK PLAN TIMELINE
Phase
Phase Phase
Phase Phase
Phase Phase
Phase
1
1 2
2 3
3 4
4
Activities

Problem Data Data analysis Suggestion


identificatio collection and Findings and
n implementati
To determine PRIMARY DATA:
Quantitative
Data analysis and on
Possible solution,
problem and case study. feasibility analysis .
problem statement Research Benchmarking Implement and
Qualitative technique maintain
research Post
implementation
SECONDARY DATA:
Review of literature
PROBLEM
IDENTIFICA
TION PHASE 1
PROBLEM
IDENTIFICATI PHASE 1
ON
Lead time provided by sears to the factory is 90 days that
consists of 45 days for pre-production activities and 45 days
for post-production activities.

Activities against pre-production-


1. Fabric and trims procurement.
2. Costing
3. Technical designing and pattern making
4. Sample preparation and approvals.
5. CAD and marker preparation
PROBLEM
IDENTIFICA PHASE 1
TION
Activities against Post-Production-
1. Cutting activities.
2. Sewing activities.
3. Finishing activities.
4. Packing and shipment.

. When the production of product does not meet the


shipment date, then the products transported by air
shipment 30 days prior to In store date increasing the lead
time by 30 days, where as when done as cargo, it is done
60 days prior to In store date.
PRE-PRODUCTION ACTIVITIES
Handover of QA files
Making Of Sample 2 2 days
Making of days Making Of Sample -
sample 1 Approval of Sample 3days
day and comments 15
Line days
Order Line TD PP/ DC
Order Adoptio Fit TD PP/ DC Size set
Confir Adoptio Fit PP Size set
Confir n Sample PP Sample
mation n Sample Sample Sample
mation Sample Sample
Sample
Approval of Sample Making Of Sample -
and comments 15 3days
Fabric Procurement

days Approval of Sample


and comments 3
days

Once the order is confirmed, the Grey booking of fabric and trims order are
done on the basis of Wing sheet received from buyer. The total lead time of
Meenu for fabric procurement is 50 - 60 days.
Total Lead Time For Pre Production Activities is
approx 61 days.
APPROVALS OF FABRIC & TRIMS

Fit TD PP/
Fit DC PP
Sample
Sample Sample
Lab dip
Approval
First Of Bulk
Lots Approval
Trims Approval

All PP samples are made in actual bulk only after the approvals of
trims and fabrics. So, the delay in procurement of fabric will lead to
the delay in PP sample approvals which will directly increase the lead
time process.
PRODUCTION ACTIVITIES

PP
PP Bulk Bundlin Sewin Finishin
Meetin Bulk Bundlin Sewin Finishin Packaging
Meetin Cutting g g g Packaging
g Cutting g g g
g
Final Audit
Pilot In line Audit
Audit

Sears standard Lead time for production activities is 45 days.


PROBLEM
STATEMEN PHASE 1
T

As the lead time of the factory for


sears is major concern the problem
statement is as follows -

LEAD TIME COMPRESSION FOR


SEARS AND KMART PRODUCTS IN
VENADOR FACOTRY.
DATA
COLLECTION PHASE 2
PRIMARY DATA:
INTERVIEW AND PHASE 2
OBSERVATION
OBSERVATION:
INTERVIEWEE :
1:Overall problem for Kmart and sears orders is delay in
1:Merchandiser at Meenu sampling due to lead time and rush in sampling section.
creation Also, the approvals may be the issue as the procedure is
quite time taking.

2:Merchandiser at sears
2:Meenu creation has certain technological gaps that
reflects while the product is moved through out the
3:Factory manager at workstations.(Absence of ERP). Also less experience in
Meenu creation fitting US size as major business is done for European
market.

4:QA inspector at sears


3:Fabric section is not organised and need to be focussed
upon also the pre-production activities are quite slow
moving that leads to less time at production and
pressure falls on production tem to meet up the
shipment date.

4:Needle work is average and delays in shipment can lead


to discontinuity of business in long run.
ON
EXISTING PHASE 2
LEAD TIME
In Pre-production the production delays are :
1. Due to fit delays because the time taken to prepare samples is more than
planned .
2. Delays in approvals and last minute changes in fabric colour changes.
3. Also, the fabric procurement process is the most time-taking process in the
lead time.

In Post production the delays are due to various short comings in the
process. They are listed as follows:
4. Cut order plan is not maintained in cutting room and processes are not
standardised.
5. Bundling is not done in cutting section and is done in sewing floor to
balance out as the cut plan is not made and bundling sheet is not
maintained
6. SAM calculation is done only for costing purpose and not for real time
production and thus is done by assumption and experience basis.
CATEGORISA
TION OF PHASE 2
DATA

We have categorised 60 purchase order in several


categories. The exisisting lead time can be analysed on
basis of following categorisation:

1. Season wise styles


2. Large Quantity order
3. Kids wear and Womens wear
4. Major time taking activity type
SEASON WISE PHASE
STYLE
2
Pre spring and spring had maximum
number of orders at Meenu by sears
Seasons at Sears: and noticeable delays in approvals
was noticed. Where as styles from
Pre-spring summer and fall were properly
Spring executed and not many orders were
Summer delayed.
Fall
Holiday/Winter As, styles were lined up and various
Carryover style
styles had 1st fit rejected, increased
the lead time. Also, in some cases
test results were rejected due to
fabric issues and failures in seam
strength.
LARGE ORDER PHASE
QUANTITY
2
Style no- WS7AN77096MI
This style was executed well, as the
Order quantity- 95,696 quantity was large. All the lab test
were passed within the time and
Order date-5 oct, 2016
samples were approved on time.
Handover date- 26 dec,2016

In store date- 26 Feb, 2017


Quality/ Workmanship problem
were faced in impatient pink and
Number of combos- 16
colours
white coloured combos as they
were light coloured garments and
Lead time- 120 days the defects in stitching were quite
Description- Sleeve less basic
visible.
shirt

Fabric- Polyester
KIDS WEAR V/S PHASE
WOMENS WEAR
2
In case of kids wear the approvals
are quicker technical design team
at Indian business office of sears
does give local approvals for fit
samples.
Kids wear styles were
recently started at In case of womens wear, the
Meenu creations. approval of fit is received from San
Francisco office of sears through a
A total of 4 kids wear waiver that leads to the delay as
styles orders was a the approval takes around 15 days
part of Meenu creations
pre spring season as the sessions are fixed for fitting
consignment. Tuesday and Thursday, and in case
of 1st fit rejection another approval
takes around same time. Hence,
the pre-production is delayed and
production does not get
appropriate time to execute and
MAJOR LEAD TIME
PHASE
CONSUMING PROCESS
2
The most time taking process is the
fabric procurement. Fabric grey is
booked as soon as wings are received.
Also, the fabric is procured from
unorganised sector i.e. Surat
Ahmadabad belt .
FABRIC LEAD TIME-
Fabric received are in form of thans
which are checked for 10% by 4 point
50-60 days.
system.
Fabric checking is very superficial and
4 point system is not properly followed.
Also, end cutter is missing that leads to
4-5 operator at one cutting table to cut
one lay.
REVIEW OF PHASE 2
LITERATURE
In the apparel export business, garment exporters get lead time from
buyers end for shipping finished garment. Sometimes buyer gives fixed lead
time for their orders or buyer asks suppliers to decide best possible lead time
and they mutually agree a date for shipment. Shipment lead time may vary
depending on order volume and product line. This post covers what does lead
time means to a supplier and how to calculate lead time for an order.

What does lead time mean in an export order?


It is the time duration from receiving an order to shipping it to buyer. Normally
ex-factory date is considered as shipping date.Lead time is expressed in
number of days.

Example, if a factory received an order on 1st of January, 2016 and buyer


asked to ship the order on 31st March, 2016. Here order lead time is 30(Jan) +
29(Feb) + 31(March) days = 90 days.
CALCULATIO
N OF LEAD PHASE 2
TIME
Step#1: Make the list of processes and events you need to do completing the
order.
The best way to do this is by preparing a Time and action calendar (TNA). TNA template
would help you quickly make the activity list and calculate the lead time. You should also
have holiday calendar of your country as well as buyers holiday list while you are
calculating for lead time (preparing TNA calendar).

Step#2: Map process time for all processes.


You need to know process time for preparatory work, sourcing material for sampling and
bulk, sampling, approvals, production, finishing etc. Calculate production capacity of each
process for the given order. Based on process time find lead time of individual processes.
While calculating number of days required for an individual process, dont forget to include
Process start-up time
weekly off and
Holidays in between process time.
For some events (like lap-dip, sample approval) which are external process you may need to
take process time for these from buyer/supplier.
CALCULATIO
N OF LEAD PHASE 2
TIME
Step#3: Check sourcing lead time for various materials
from your supplier.
Take commitment from supplier for material delivery.
According to sourcing time plan your PCD date. You need few
days for fabric approval before starting bulk cutting.

Step#4: Identify critical processes for the given order.


Prepare critical path for all processes and events. This is
important to understand which all processes can be done
parallel and which all process cant be started without
completing previous process. Consider overlapping of multiple
processes and working on multiple processes in the same time
period. This way you can reduce lead time.
CALCULATIO
N OF LEAD PHASE 2
TIME
Step#5: In the TNA calendar write start date and completion date of all
processes.
Thus you will get finishing and packing completion date of the given order. You can overlap
production processes. Like, if you need 5 days for cutting process, you can start loading
production in same day or next day of cutting start. Similarly for stitching you need 10 days
but you can start finishing process when production pieces start coming out from the line
without waiting for completing stitching for whole order. This way you can reduce
production lead time.

Step#6: Calculate Lead time


From the above you have order receiving date, production completion and finishing
completion date.

Count days required to reach from one event to next event and mark dates for each event.
Write start date and completion date of all processes following critical path.
To get total duration in between order receiving and shipment date count total days from
order receiving date to shipment date. You got lead time for the given order.
REVIEW OF PHASE 2
LITERATURE
According to Indian Labour organisations paper on wages
in apparel industry, China overtook the European Union
(EU) as the biggest textiles and clothing exporter in the
world, and became the number one in the four industries
literally the worlds TCLF factory. In 2012, China exported
33 per cent of world textiles, 38 per cent of clothing, and 60
per cent of leather and footwear, and despite signs that
production is moving to lower cost countries, it remains the
most important TCLF producer and exporter globally.
REVIEW OF PHASE 2
LITERATURE
According to European scientific journal (Nov, 2014)Lead Time in
Production Planning In production planning, lead time is very
important. Suppose, a product is made from material B and
material C. Material B is made from material C. It means, if there is
delay in producing or sourcing material C, there will be delay in
getting material B. So, there will be delay in the production of
product A. Customer will not get delivery in time. So, deadline is
fixed for getting supply and production simultaneously. Suppose, 30
days is the lead time for delivery after customer places the order. It
means, lead time for buying and production of material B and C
should be fixed accordingly. Lead Time in Apparel Industry To lower
the risk of a fashion miss, now days most of the retailers and
apparel companies are pressing their suppliers to crank out a small
order quicklyallowing them to test styles in storesand then fill
re-order requests even faster, a tactic known as chasing.
REVIEW OF PHASE 2
LITERATURE
This chase leads to a stressed out lead time for the
apparel manufacturers. In apparel industry, lead time is the
total amount of time required for completing a product
beginning from the date of receiving raw materials to the
stage shippable to the customer. Total lead-time is made up
of time devoted to processing orders, procuring and
manufacturing items, and transporting items between the
various stages of the supply chain. Lead-time typically
includes two components: Information lead times (the time
it takes to process an order) and Order lead times (the time
it takes to produce and ship the item). An equation may be
able to help us to assimilate the conception. Total Lead
Time = Information Lead Time + Order Lead Time =
Information Lead Time + Manufacturing Lead Time +
Shipping Time for importing fabrics & accessories +
Shipping Time for exporting final product
REVIEW OF PHASE 2
LITERATURE
According to paper in apparel resources ( Aug 2016) Garment exporters catering to
high fashion markets demand a responsive supply chain with a very short lead-time.
CMT exporters in India typically work with a lead-time of 75-90 days, vertically
integrated plants are known to work with even longer lead-time. With turnaround
time becoming a prime factor in attracting business, manufacturers are increasingly
exploring options to reduce the cycle times. (Zaras phenomenon success in high
fashion garments is largely attributed to its agility in responding to customers
requirement). However in the absence of information regarding specific causes of
delays, it becomes practically impossible to tackle the issue of longer lead-time.

Garment pre production activity, time loss in getting approvals and logistics related
issues contribute to more than 80% of delays.
Since the delivery schedules are fixed, the time lines for production activities are
squeezed on an average by 30 %
DATA
ANALYSIS
AND PHASE 3
FINDINGS
CASE STUDY PHASE 3

We have done analysis on lead time of ongoing styles at


Meenu creations.

One is kids wear, Ombre dress and another one is a crinkle


effect ladies top
CASE STUDY 1
(S/L LADDER TRIM CRINKLE
BLOUSE) PHASE 3
DETAILS:

1st fit sample approved: 04/01/2017


FPT: 14/01/2017 18/01/2017
GPT : 16/01/2017 19/01/2017 (Rejected)

TD PP sample sent : 20/01/2017


TD PP sample approved : 24/01/2017
Total pre production lead time : 64
days

Planned PP Meeting : 25/01/2017


Actual PP Meeting : 30/01/2017
Style no- WU7BE77450MI Bulk cutting: 31/01/17 10/02/2017
Colors - Blue Bell (5415 pcs) Sewing : 04/02/2017 14/02/2017
Impatient Pink (6331 pcs) Finishing : 10/02/2017 16/02/2017
Total production lead time : 18 days
Order date 21/11/2016
Original ship date 31/01/2017 Planned lead time 70 days
Actual lead time 84 days
Actual ship date 16/02/2017
AREA OF FOCUS PHASE 3

GPT Failed due to unsatisfactory result in fiber test which lead to


change in care label.
Delay in PP Meeting due size set sample issues. Size set was not
ready because of issue in blue bell colour fabric that the
appearance of crinkle effect was inappropriate and flattening.
Also, not all the fabric for both colors was in-house that caused
delay in production.
Delay in production activities due to fabric shrinkage issue
because of which the whole fabric had to undergo CPL process.
Delay in cutting due blue bell color fabric was not completely in
house at the time of PP meeting and one line of production was
kept on hold.

AREA OF FOCUS- FABRIC PROCUREMENT IS DELAYED


CASE STUDY 2
(OMBRE KIDS DRESS ) PHASE 3
DETAILS:

1st fit sample approved: 07/12/2016


FPT: 25/12/2016 29/12/2016 (Rejected)
GPT : 28/12/2017 31/12/2017

TD PP sample sent : 05/01/2017


TD PP sample approved : 10/01/2017
Lace mock lot approval : 16/01/2017
Total pre production lead time : 76
days

Planned PP Meeting : 25/01/2017


Style no - GS7HE35004BG Bulk cutting: 23/01/17 04/02/2017
Sewing : 27/01/2017 07/02/2017
Finishing : 07/02/2017 17/02/2017
Colors-Turq Ombre Total production lead time : 24 days
Print(10,508pcs)
Planned lead time 62 days
Order date 08/11/2016 Actual lead time 99 days
Original ship date 10/01/2017
Actual ship date 17/02/2017
AREA OF FOCUS PHASE 3
FPT rejected due to color fastness to light and approval
received on 13/01/2017.
Delay in TD PP sample due to late in- house of fabric and
late approvals of fabric tests.
Delay in size set sample approvals because buyer was not
satisfied with the appearance of Ombre effect on garment.
The reference production sample i.e. TOP sample sent to
buyer was rejected which delayed the production process
and also the final inspection was put on hold.
Due to higher shade variation, single size marker was used
which contributed a lot of time in cutting process.

AREA OF FOCUS- FIT SAMPLE IS DELAYED


CASE STUDY 2
(OMBRE KIDS DRESS ) PHASE 3
DETAILS:

1st fit sample approved: 07/12/2016


FPT: 25/12/2016 29/12/2016 (Rejected)
GPT : 28/12/2017 31/12/2017

TD PP sample sent : 05/01/2017


TD PP sample approved : 10/01/2017
Lace mock lot approval : 16/01/2017
Total pre production lead time : 76
days

Planned PP Meeting : 25/01/2017


Bulk cutting: 23/01/17 04/02/2017
Style no - GS7HE35004BG Sewing : 27/01/2017 07/02/2017
Finishing : 07/02/2017 17/02/2017
Colors-Turq Ombre Total production lead time : 24 days
Print(10,508pcs)
Planned lead time 62 days
Actual lead time 99 days
Order date 08/11/2016
Original ship date
10/01/2017
LIMITATIONS PHASE 3
Convenience sampling, as all the data is not readily
available.

Less availability of data because of improper Paperwork.

Unorganized work structures pre-production and production


both work in isolation and are not working as a team.

Reluctant to reveal the problem areas and hide by giving


limited data.