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PowerPoint CH 10 Ready To Wear Manufacturing
PowerPoint CH 10 Ready To Wear Manufacturing
Chapter 10
• Ready-to-Wear
Manufacturing
1
Learning Outcomes:
1. Summarize the business aspects of apparel
manufacturing.
2. Analyze the use of contractors.
3. Differentiate among preproduction procedures from
costing and editing the line to cutting the garments.
4. Analyze the process and methods of apparel production.
5. Summarize employee concerns of health and safety, as
well as equitable pay.
6. Differentiate between offshore production and domestic
production.
2
Master-King Garment Manufacturing Ltd.
in Kampong Speu, Cambodia
https://www.youtube.com/watch?v=6FX1KzX7_lk (2:06)
Cambodian workers fight for a living wage
Cambodian garment workers demand higher wages | Asia| An ... Dec 30,
2013
Made in Cambodia: Garment Workers Fight Gap, H&M and ... Feb 20, 2014 http://labourbehindthelabel.org/who-we-are/
Life on $3 a Day: Garment Workers and Cambodia's Struggle ... Jan 14, 2014 http://labourbehindthelabel.org 4
Today’s Fashion Industry
• Today, the garment industry turns over almost $3 Trillion a year.
• Yet garment workers, 80% of them women, work for poverty pay,
earning as little as $21 a month.
• Human rights abuses are systemic throughout the industry.
• Poverty wages, long hours, forced overtime, unsafe working
conditions, sexual, physical and verbal abuse, repression of trade
union rights and short-term contracts are all commonplace in the
clothing industry.
• It is an industry built on exploitation and lack of transparency
that makes holding brands accountable difficult.
http://labourbehindthelabel.org/who-we-are/
5
Cambodia, faced with losing European trade
status, raises textile worker’s wages
• Cambodia raised next year’s legal minimum wage for workers in its crucial textiles and footwear
industry to $190 per month, an increase of 4.4%, amid pressure from the European Union over its
human rights and political record, officials said.
• September 20, 2019
• https://uk.reuters.com/article/uk-cambodia-garment/cambodia-faced-with-losing-eur6
opean-trade-status-raises-textile-workers-wages-idUKKBN1W50MI?il=0
Cambodia’s Garment Workers Get
$2 Monthly Pay Bump
• Cambodia’s garment workers are getting a pay increase—but just barely. The Southeast Asian nation’s Ministry of Labor announced Thursday that the
minimum monthly wage for the apparel and footwear sector will get a $2 lift to $194 beginning next year, following protracted and often stalemated
negotiations between trade unions, employers and the government to arrive…
• SEPTEMBER 29, 2021
• https://sourcingjournal.com/topics/labor/cambodia-minimum-wage-covid-19-304715/
7
Human Rights Violations Are Increasing in
Fashion’s Manufacturing Hubs
• OCTOBER 7, 2021
• https://www.businessoffashion.com/news/sustainability/human-rights-violations-are-increasing-in-fashions-manufacturing-hubs 8
Redwood Classics
http://redwoodclassics.net
Apparel
Redwood
classics apparel
praised for
social
responsibility
and human
rights
commitments
9
WS http://www.wsandcompany.com/
& Company Ltd.
#gbcfashionalumnus
10
1. Apparel Production
• Apparel manufacturing is also known as production
• Production
Transformation of resources (materials) into goods that
people need or want
• Factors of production
Resources – materials
Labour – workers
Capital – money and equipment
Business leadership– ideas and organization
11
1. The Apparel Manufacturing Industry
https://ym-inc.com/brand/
https://hmgroup.com/brands/
• Growing firms often open new divisions with different lines and
labels at various price levels to expand and diversify
• Automation is the use of machinery to perform physical tasks
It usually achieves greater productivity
• Productivity is a measure of how efficiently or effectively the
factors of production are used, e.g. labour, materials 13
1. The Business of Apparel Manufacturing
• To be successful, apparel
manufacturers must
keep costs low, quality
high, and selling prices in
line with those of
competitors
• Costs include fabrics,
findings (zippers and other
functional garment
parts, trims),
wages, production
equipment and
overhead
14
1. The Apparel Industry
17
1. Competitive Strategies
2. Ways to differentiate
Higher quality
Distinctive designs https://wwd.com/fashion-news/sportswear/sustainable-fashion-brand-kotn-expands-into-womens-11004296/
Better performance
Convenient location
Better service
Technological superiority
18
#gbcfashionalumnus x 5+++!
1. Competitive Strategies
2. Pursuing Differentiation
https://kotn.com/
•To pursue differentiation, companies
might set themselves apart by offering
higher quality goods
better service
distinctive design features
•Upscale goods usually attract fewer
customers
Consumers who buy those goods,
however, spend more per item 19
1. Competitive Strategies
3. Some manufacturers focus on
satisfying a narrow market niche to
be successful
They use innovation to satisfy
specific market opportunities
If successful, they are first to offer
something with a special appeal to
target customers
•U.S. and Canadian manufacturers
are very successful at satisfying
niche markets
First to offer something unique to https://www.anniethompson.ca/
meet needs 20
1. Fashion Seasons and Lines
• Manufacturers design,
produce, and sell their lines
for separate fashion seasons
which are distinct retail selling
periods
• Retail sales periods occur
February through July for
Spring/Summer merchandise
August through January for
Fall/Winter merchandise
• Most manufacturers,
however, have four or more
production seasons 21
1. Fashion Seasons & RTW Production
• Traditionally, lines are
produced for separate
fashion seasons
1. Spring–November
2. Summer–January
3. Fall I (transitional)–
February
4. Fall II (winter)–April
5. Holiday (party attire)–July
6. Resort/Cruise–August
22
1. Fashion Seasons and Lines
25
2. Inside and Outside Shops
• Inside shops
Firms that do all stages of production
from design, fabrication and sewing, to
shipping
They employ cutting and sewing workers
• Outside shops
Firms that handle everything but the
sewing, and sometimes the cutting
Contract “out” to independent sewing
factories
Outside shops that never produce their
own goods are called apparel jobbers
26
2. Inside and Outside Shops
• Sourcing is the process of determining
how and where to procure
manufactured goods for resale
• In the fashion industry, sourcing occurs
in two ways:
when retailers select apparel firms from whom
to buy their goods
when apparel companies seek contractors to
produce goods to their specifications
https://www.mckinsey.com/industries/retail/our-in
sights/is-apparel-manufacturing-coming-home 27
2. Contractors
• Produce goods according to another
firm’s specifications
Allows for specialization
Allows apparel firms greater flexibility
Lowers costs
Speeds delivery
Main drawback is limited quality control
http://www.wrapcompliance.org/
Velocity Apparel talks about how WRAP has helped their business 28
https://www.youtube.com/watch?v=CYb9fHT1JrU (3:31)
2. Using Contractors
Advantages Disadvantages
•The contracting system allows •The main drawback is the limited
for specialization of control the company has over the
manufacturing expertise quality of work
Apparel manufacturers gain Often no individual has full
responsibility for the finished
flexibility in periods of varying
product
market demands
Unreliability may also be a
By using contractors, apparel problem
companies have hardly any
labor or capital equipment •Production contractors may
needs make decisions that slow or
•By adding more contracting postpone the work that needs to
get done for the first company
plants during
peak demand, orders can be
completed in a timely way 29
3. Preproduction Procedures
FLOWCHART OF APPAREL MANUFACTURING
Preproduction DESIGNING
Postproduction STOCKROOM
SELLING
30
DISTRIBUTION
3. Preproduction Procedures
• It takes many production steps to turn design ideas into finished wearing
apparel
RTW production is a continuous process that has overlapping steps
As one line is sent through the manufacturing flow, additional designs are considered
• Companies aim for a cohesive, profitable line by customer targeting and
fashion planning
31
3. Preproduction Procedures
Peak
Culmination
Rise Decline
Slowly increases in Saturation
popularity
Introduction Obsolescence
33
35
3. Selecting and Costing the Designs
36
3. Costing
• Costs calculated for producing 1 item
• Variable costs:
36% Fabric (garment and lining yardage)
Thread (type of stitching)
Findings (buttons, snaps, zippers, hooks,
bands, tape bindings, etc.)
11% Labour (layout, design, cutting, sewing)
• Finishing techniques
• Labelling, packaging, and shipping
• Fixed costs:
33% Overhead
• Profit
20%
• Wholesale price 100%
37
3. Editing the Line
• Change, revise, or
eliminate part of a line
• Construction details may
be altered to lower costs
• Approved styles made
into samples and shown
to top management and
key retailers
38
3. Editing the Line
• Only a small fraction of the
designs first intended for a line
are actually produced
Manufacturers edit (change and
revise) the line at several points
• Samples are trial garments, or
prototypes, made exactly as they
are intended to look when sold
They are used to check design
aspects and fit
39
3. Editing the Line
• The lines are openly shown to
all retail buyers and initial
orders are taken
Then the amounts of each style to
be manufactured are determined
• Apparel companies also seek
market feedback
They use samplings, which are
small quantities of garments
made up and placed in retail
stores to test the designs in the
market to determine popularity
40
3. The Cutting Process
• Precutting
Grading - making patterns into a range of sizes
• Pattern pieces laid on a marker
CAD used to create markers
• Electronic cutting
Multiple layers of fabric cut by knife, water-jet cutters or lasers
41
3. The Cutting Process
44
3. Cutting
Maker's Row
Apr 4, 2016
https://www.youtube.com/watch?v=hnQy5ZbLFYw (O:42)
At the end of 2015, Dynotex received a new electric fabric cutting table - the first in NYC. 46
Dynotex, Inc. is a high-quality apparel production house based in Brooklyn run by owner, Alan Ng.
4. Apparel Production
• After cutting, the garment parts go step-by-step
through the assembly line
• Older garment assembly methods include the
Traditional tailor system
• One person does all sewing
Progressive bundle system
• Piecework; one specific task assigned to each person along assembly line
• Newer computerized methods include the
Unit production system
• Computerized routing, tracking, and sewing
Modular system
• flexible manufacturing strategy
47
4. Traditional Tailor System
Eton Systems
https://www.youtube.com/watch?v=U
KCCXKRw8eo
(2:37)
53
5. Apparel Company Concerns for
Employees
54
5. Apparel Company
Concerns for Employees
55
5. Apparel Company
Concerns for Employees
• Health and safety
Equipment is designed
& arranged for the
most effective & safest
interaction w/ those
using it
56
5. Apparel Company Concerns for
Employees
• Employee health and safety
is important
• Ergonomics matches human
performance to the tasks
performed, the equipment
used and the environment
Understanding ergonomics
and using proper equipment
and training decreases
production costs
Fewer employees become sick
or disabled
• Job rotation 57
5. Employer Concerns
• Another employer concern is how to
equitably pay employees for work done
The piecework system is based on individual
incentives to work as fast as possible
plo Another system is based on team incentives to do
Em
yee
s
the best work possible, e.g. gainsharing
• Various wage plans offer different employee
earnings potentials
58
5. Employer Concerns
• Work design encompasses:
ergonomic matching of jobs and
equipment to employees
the companies’ output requirements
compensation plans
worker behaviours that are
reinforced
• Good work design brings higher
company profits and worker
satisfaction
59
6. Offshore Production
60
6. Offshore Production
• Lower wages overseas usually include no overtime pay
or fringe benefits
Incentives for other governments, such as tax exemptions,
further reduce the production costs in those countries
• A garment having the name of a(n) Canadian/
American designer or firm does not mean it was made
in Canada/United States
– Product of Canada claims will be subject to a higher threshold of Canadian content (98%), while Made in Canada claims will remain subject
to a 51% threshold of Canadian content. Made in Canada claims should be accompanied by a qualifying statement indicating that
the product contains imported content.
– The Textile Labelling Act is a regulatory statute.
• "Product of Canada" and "Made in Canada" Claims ...https://www.competitionbureau.gc.ca › eic › site › cb-bc.nsf › eng
61
6. Offshore Production
Rana Plaza, Bangladesh Factory Collapse
https://www.youtube.com/watch?v=ISj8BECf40Q (2:34)
63
6. Offshore Production
• Apparel manufacturers who use low-cost labour
for their production may own or use contract
factories abroad
• When sourcing from distant locations such
as China, Cambodia and Bangladesh
lead times (for ordering ahead) are much longer
response times (for producing and delivering goods)
are also longer
Technology has helped
• This is a disadvantage for fashion accuracy and
market responsiveness
64
6. Domestic Production
Reshoring
https://www.fashionexchangetoronto.com/manufacturing/
65
6. Domestic Production
https://www.thestar.com/life/fashion_style/2017/09/23/made-in-canada-is-cool-again.html
http://www.fashionexchangetoronto.com/ https://www.youtube.com/watch?v=a7Rmql4Vwk4&t=150s (2:30)66
6. Influence of Unions
• The International Ladies’ Garment Workers’ Union (ILGWU),
founded in 1900, lead to
better pay and working conditions
the outlawing of U.S. sweatshops and child labor
the funding of unemployment insurance and health benefits
arbitration provisions
• In the 1970s, the ILGWU merged with the Amalgamated
Clothing and Textile Workers Union in 1995
UNITE, the new organization, is the Union of Needletrades, Industrial
and Textile Employees
• UNITE continues to work for good wages, fair labour
practices, and beneficial legislation
67
6. Influence of Unions
• https://twitter.com/cgworkersunited?lang=en 68
• https://drive.google.com/file/d/1OsNkTNy_Y6L8XATJ_2NAM__wLnUguUj3/view (2:23)
In Summary…
• Apparel production is global, labour-intensive, and becoming more
technical and automated
Inside shops sew their own products
Outside shops use contractors
• Companies plan garments in response to estimated market demand
After taking retail orders, they decide production quantities and order
materials
• Fashion companies compete on cost, differentiation, or market niche
Manufacturing in low-wage countries gives a competitive advantage
• Health, safety, and equitable pay are the biggest employee concerns
Piecework pay is changing to systems based on group incentives
69
Review Question
Apparel production costing tries to figure the financial
aspects of producing each apparel item according to
the ____.
70