An Investigation Into Indian Apparel and Textile Supply Chain Networks
An Investigation Into Indian Apparel and Textile Supply Chain Networks
Prabir Jana
August 2010
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Abstract
The activities of the Indian clothing industry supplying Western markets have been
investigated, with particular reference to identifying where improvements could be made to
supply chain management.
analysis established that long lead-times in pre-production areas were of great concern.
However Indian apparel manufacturers were found to be more cost conscious and rather
less conscious about the value of time in pre-production areas.
It was found that pre-production activities constituted 73% of total manufacturing lead time
and have high positive correlation (0.96) with total manufacturing lead time.
Pre-
ii
Acknowledgement
I would like to thank Dr. Alistair Knox, Director of Studies and Dr. Peter Philips,
Supervisor of Studies from Nottingham Trent University, Fashion & Textiles, Professor
Prabir Banerjee, Supervisor of Studies from Textile Technology Department, Indian
Institute of Technology, New Delhi and Professor A.S. Narag, Supervisor of Studies from
Faculty of Management Studies, New Delhi, India for their guidance and constant support
in carrying out this research.
I would also like to thank Mr. Derek Brown, Mr. Kevin Byrne and Ms. Lynn Oxborrow at
NTU and Mr. Paul Stevens at Fast React Systems for their continuous encouragement and
critical appreciation of the effort.
I would like to express special gratitude to Mr. Chris Corn of Scitor Corporation, USA for
providing demonstration license of PS 8 software for use in the research and e-mail user
support during the research.
I would like to thank the following students who worked under my guidance to carry out
action research and/or data collection work related to my research:
Contents
Title
Page
Copyright Statement
Abstract
ii
Acknowledgement
iii
Contents
iv
List of Tables
xv
List of Figures
xviii
List of Appendices
xx
List of Abbreviations
Xx
xxi
1.0
Introduction
1.1
1.2
1.3
1.4
Aim of Investigation
1.5
Chapter One
iv
1.6
1.7
Research Design
11
1.7.1
11
1.7.2
Primary Data
12
1.8
Research Publications
13
1.9
Summary
14
Chapter Two
Page
2.0
Literature Review
15
2.1
15
2.1.1
18
2.1.2
21
2.1.3
24
25
2.2.1
Conceptual Classification
26
2.2.2
Structural Classification
28
2.2.3
31
2.2.4
33
2.2
2.2.5
36
41
2.3.1
44
2.3.2
2.3.3
52
Optimisation Techniques
57
2.4.1
Postponement
57
2.4.2
60
2.4.3
Lean Manufacturing
63
2.4.4
Inventory Management
64
2.4.5
68
69
2.3
2.4
2.5
2.5.1
2.6
78
2.7
81
2.7.1
83
2.7.2
87
Summary
92
2.8
vi
Chapter Three
3.0
Page
Research Design And Scope
Full understanding of the Indian apparel export manufacturing
3.1
3.2
practice methods
Delay-contributing activities in manufacturing cycles, analyse
3.3
3.4
manufacturing cycle
3.5
3.5.1
3.5.2
3.5.3
97
97
99
101
102
103
104
105
105
3.6
Selection of Population/Sample
106
3.7
Investigative Tools
107
3.8
Ethical Procedures
107
3.9
Summary
109
vii
Chapter Four
Page
4.0
Pilot Studies
110
4.1
110
4.1.1
Methodology
110
4.1.2
Data Collection
112
4.1.3
Data Analysis
119
4.1.4
Conclusion
121
122
4.2.1
Methodology
122
4.2.2
Data Collection
123
4.2.3
Data Analysis
127
4.2.4
Conclusion
129
129
4.3.1
Methodology
129
4.3.2
Data Collection
131
4.3.3
133
4.3.4
Conclusion
134
Summary
135
4.2
4.3
4.4
viii
Chapter Five
Page
5.0
Case Studies
136
5.1
136
5.1.1
Methodology
136
5.1.2
Data Collection
137
5.1.3
Data Analysis
146
5.1.4
Conclusion
148
149
5.2.1
Methodology
149
5.2.2
Data Collection
155
5.2.3
Data Analysis
158
5.2.4
Conclusion
164
165
5.3.1
Methodology
166
5.3.2
Data Collection
169
5.3.3
Data Analysis
170
5.3.4
Conclusion
176
Summary
177
5.2
5.3
5.4
ix
Chapter Six
Page
6.0
Longitudinal Studies
179
6.1
180
6.1.1
Methodology
180
6.1.2
Data Collection
181
6.1.3
Case Studies
183
6.1.4
184
6.1.5
185
187
6.2.1
Methodology
187
6.2.2
Data Collection
188
6.2.3
Data Analysis
198
6.2.4
203
204
6.3.1
Methodology
205
6.3.2
Data Collection
206
6.3.3
Data Analysis
225
6.3.4
Conclusion
227
6.2
6.3
6.4
6.4.1
6.4.2
228
229
6.4.1.1
229
Methodology
230
6.4.1.3
231
Data Analysis
6.4.1.4 Conclusion
233
234
6.4.2.1
234
Methodology
235
6.4.2.3
244
Data Analysis
6.4.2.4 Conclusion
Chapter Seven
245
Page
Conclusion
247
7.1
247
7.2
249
7.3
255
7.4
259
7.0
xi
261
Bibliography
285
Appendices
290
xii
List of Tables
No.
Title
Page
2.1
25
2.2
37
2.3
39
2.4
65
2.5
71
2.6
85
4.1
112
4.2
131
5.1
140
5.2
142
5.3
144
5.4
151
5.5
152
5.6
154
5.7
156
5.8
157
5.9
159
160
Excerpt of Initial Format for Value Added and Non Value Added
5.11
Activities
167
167
168
169
xiii
5.15 Order Wise Value Added and Non-Value Added Time in Manufacturing
170
172
174
6.1
189
6.2
Tracking Format: Actual Days vs. Critical Path and Critical Chain
195
6.3
Tracking Format: Actual Days vs. Critical Path and Critical Chain
196
6.4
Critical Activities
197
6.5
198
12/09/2002
202
12/09/2002
202
6.8
207
6.9
215
Scenario)
230
(Hypothetical Scenario)
231
232
238
241
243
245
xiv
List of Figures
No.
Title
Page
1.1
1.2
1.3
2.1
Product Type
22
2.2
23
2.3
24
2.4
26
2.5
29
2.6
30
2.7
32
2.8
42
2.9
42
43
49
53
54
56
61
63
73
75
76
88
xv
2.21 Procurement Channel for Men's Shirts for West European Buyer
89
91
4.1
113
4.2
114
4.3
115
4.4
115
4.5
116
4.6
117
4.7
117
4.8
118
4.9
Seasonality in Business
119
124
125
126
128
5.1
139
5.2
141
5.3
143
5.4
145
5.5
161
5.6
162
5.7
162
5.8
173
6.1
192
xvi
6.2
194
6.3
199
6.4
200
6.5
208
6.6
209
6.7
210
6.8
211
6.9
213
214
216
6.12 JDW-HE-060-WHITE Gantt Chart with Sub-tasks and Resource Histograms 217
6.13 El Corte 104-1-SUIT Gantt chart With Sub-tasks and Resource Histograms
218
220
221
222
223
224
237
240
242
7.1
249
7.2
251
7.3
253
xvii
List of Appendices
No.
Title
Page
No.
Title
Page
290
II
292
III-A
293
III-B
302
IV
309
VI
310
xviii
List of Abbreviations
AEPC
ALAP
AOA
AON
ASAP
CPD
CPM
IIFT
INR
IT
JIT
MRP
NCR
NIFT
NNVA
NPD
NVA
PD
PERT
PLM
PPC
QR
SCM
SEZ
SME
SSI
TNA
UVR
VMI
VSM
xix
Chapter One
1.
Introduction
A web search of the phrase Supply Chain Management delivered 12.3 million hits on
Google (Google 2008) and 6.1 million hits on Cuil (Cuil 2008). The acronym SCM has the
most widespread reach among manufacturing and retail industries (Gattorna 1998a), and
has been one of the most popular research topics among business and technology schools in
the world. The growing popularity of SCM among researchers is clear from the following
figures from Emerald (Emerald 2008): Of articles published between 1995-2000, 615 had
the phrase supply chain management in the title. The number grew to 1584 between
2000-2005 and there were as many as 1649 articles between 2005-2008. The Information
Technology (IT) integration of the topic and widespread support from both the print and
electronic media is exemplified from the following statistics: A web search (Google 2008)
on software solutions for supply chain management resulted in 1660 hits, whereas 4030
hits were counted on seminar/conference on supply chain management. SCM is no longer
confined to operation and functional areas of a firm; today it is a strategic issue demanding
attention from top level management in all sectors of industry.
The apparel and textile industry is such a sector: it can be regarded as a series of
interrelated activities which originates with the cultivation and/or manufacture of fibre and
culminates in the delivery of a garment to an end user, viz, the consumer. The industry
caters to one of the basic human needs clothing being present in almost every country
in the world and plays a very crucial role in supporting and sustaining human life. With the
terms apparel and textile being very much linked with fashion (Jones 2006a), the
industry has a vested interest in developing new products at the expense of existing items;
i.e. planned obsolescence (Easey 1995).
1
India, with a centuries-old rich heritage in textiles is a strong force to reckon with in the
global apparel and textile trade (WTO 2007). Applying one of the most dynamic
management concepts, i.e. SCM, to the fashion industry in an emerging economy such as
India, is indeed a challenging task. This research involves the latest thinking on
management of the apparel supply chain with specific application to case studies from
India.
1.1.
A supply chain is the global network used to deliver products and services from raw
materials (i.e. upstream) to consumers (i.e. downstream) through an engineered flow of
information, physical distribution, and cash (Alber and Walker 1998). Christopher (2006a)
defined a supply chain as a network of organizations that are involved, through upstream
and downstream linkages, in the different processes and activities that produce value in the
form of products and services delivered to the ultimate customers. A typical supply chain
may involve a variety of stages like customers, retailers, wholesalers/distributors,
manufacturers and component/raw material suppliers. Figure 1.1 represents the various
stages of a simple supply chain.
Figure 1.1
Supplier
Manufacturer
Wholesaler/
Distributor
Retailer
Customer
Supplier
Manufacturer
Wholesaler/
Distributor
Retailer
Customer
The primary objective of SCM is the integration and control of the normal flow of
materials across multiple members of the system, involving multiple ties among suppliers
and customers (Monczka et al. 1998). The material flows down stream with value added in
each process and cash flows upstream, while information flows in either direction. The aim
is to improve efficiency, reduce or eliminate waste and save direct resources. In effect, it is
to ensure right product at right place at right time. Each link (echelon) has input-processoutput; the flow can be push or pull between each couple of activities in the chain.
The material decoupling point is the position in the material pipeline where the product
flow changes from push to pull and the information decoupling point is the point in the
information pipeline where forecast driven and market driven information flows meet each
other (Mason-Jones and Towill 1999a). According to them the position of the material
decoupling point has a significant impact on inventory levels in the supply chain and
responsiveness to demand and postponement of material conversion moves the decoupling
point downstream (Mason-Jones and Towill 1999b)., thereby enabling smooth upstream
planning.
The total time taken by the material from upstream to downstream is called supply leadtime. SCM could be seen as a management philosophy, implementation of management
philosophy, or a set of management processes (Mentzer et al. 2001). In SCM, the
philosophy of supply chains extends the concept of partnerships into a multi-platform effort
to manage the total flow of goods from the supplier to the ultimate customers (Ellram,
1990; Jones and Riley, 1985). The non-value added activities in the supply chain could be
more than 90 percent of the supply lead-time (Christopher 2006b) and need to be
minimised. Inventory reduction and improved logistics (Christopher 1998), Collaborative
Product Development (Womack and Jones 1996) and partnership sourcing (Macbeth and
Ferguson 1994) are some of the methods to reduce lead-time and improve supply chain
efficiency.
1.2
A typical apparel and textile supply chain would have trading partners from fibre producer
upstream to retail consumer downstream. Some of the nominal trading partners would
3
include trims and accessories suppliers, textile and apparel testing agencies, and freight
forwarders. Figure 1.2 represents a typical apparel and textile supply chain.
Figure 1.2
Freight
Forwarders
Trims
Cash Flow
Trading Partners
Fibre
Yarn
Fabric
Apparel
Retail
Consumer
Textile Testing
Material flow
Information Flow
Global apparel and textile industry is characterised by product variety, fashion content and
seasonality. Though there are less than 20 significant textile fibre types, the variety in the
final product (the garment) is infinite. As material flows downstream from fibre to retail,
the fashion content in the product increases; thus stock keeping unit (SKU) diversity also
increases phenomenally (Massey 2000). The fashion content of apparel makes it a
perishable commodity over time, resulting in markdowns and discounts (Oxborrow and
Massey 2000) and so the objective of every player in the chain is to move the goods from
design to consumer in the fastest possible time. In a car industry, new product development
used to take 4-5 years (Womack et al. 1990), whereas in the apparel industry, new product
introduction every 4-6 weeks has become common in the so called fast fashion
(Oxborrow and Massey 2000, Mintel 2007). The following example of cotton brief (figure
1.3) gives an idea about value addition and lead time in a traditional apparel and textile
supply chain (Knox and Newton1998).
Figure 1.3
Typical Value Addition and Lead-Time for a Cotton Brief (in Apparel
Being highly labour-intensive, the apparel manufacturing activity has migrated to lower
labour cost countries over time, resulting in global supply chains. Now, with fibre grown or
manufactured in one country, fabric could well be in another and apparel in a third country.
To manage this global supply, intermediate agents like the buyer, contractor, importer,
wholesaler and distributor might be added to the basic network (fig 1.2). With the
traditional two seasons per year (Autumn/Winter and Spring/Summer) or with commodity
clothing, such extended supply chains were not a major problem.
During the 1990s, there had been a paradigm shift from cost-based to time and value based
competition in global sourcing of merchandise (AAMA 1995), resulting in an everincreasing and irreversible global trend towards speed and replenishment sourcing of
merchandise (Oxborrow and Massey 2000), (Abernathy et al. 1999a). Increasing
importance was given to design innovation capabilities of the manufacturer (Kerr 1999)
and shifting of product development functions from retailer to manufacturer for an effective
supply chain (Watson 2002).
The time taken from an order being placed on an apparel manufacturer till the complete
order being shipped to retailer is called manufacturing lead time or manufacturing cycle
time. The average lead time is approximately 167 days (JBA 1998); lead time may vary
from 117 to 172 calendar days depending on the level of adoption of technology
(Abernathy et al. 1999b). Given that the labour cost of a garment is generally much less
than one hour (The Binran, 1990), it is apparent that typically 95 percent of all lead time in
manufacturing is non-value added activities (CMTC, 2003).
1.3
The Indian textile and apparel industry, with a turnover of $ 15.4 billion in 2005-06
(Annual Report 2001-2008) is one of the largest segments of Indias economy, accounting
for 15 percent of total industrial production and slightly more than 17 percent of total
export earnings. It is also the largest employer in the manufacturing sector with a
workforce of some 35-38 million people (Chandra 2006, Annual Report 2007-2008). India
is the third-largest producer of cotton in the world with annual production of some three
million tonnes, fifth largest producers of manmade fibres and filament yarns with an annual
output of 1.7 million tonnes and second-leading producer of silk, with annual output of
nearly 15 million kilograms. Indias textile sector has the second highest installed spindles
capacity and the highest number of looms installed in the world. Due to the Small Scale
Industry (SSI) investment ceiling imposed by the government, Indias apparel sector was
highly fragmented, comprising about 30,000 units and employing some three million
people during 1997 (AEPC 1998). However, due to the recent relaxation of investment
limit and consolidation, the industry now consists of around 100 plus large players with a
turnover of more than 15.13 million and around 2000 smaller players, who specialise in
either niche products or small quantities (ApparelOnline 2006). Factories with turnover of
more than 6 million are regularly monitored for compliance and account for more than 75
percent of Indias exports. Till Sept. 2005 there were 58 WRAP certifications, 111 SA
8000 and more than 125 AVE audited factories (Trend Fusion 2006). Government initiative
includes a Technology Upgradation Fund scheme a with loan of INR 92,700 million, 100
percent FDI allowance in manufacturing, setting up 42 new Special Economic Zones
(SEZs), etc., (Trend Fusion 2005).
Apparel exports from India started mainly with low-value low-quality products with the
objective of using an inexpensive workforce (Koshy and Jana 2000). While the majority of
developing (apparel exporting) countries are engaged in contract manufacturing, India is
mainly engaged in fully factored manufacturing (Koshy 1997a). As a global sourcing
destination, Indias core competencies are innovative and value added merchandise with
flexibility in production volume. Improvement of product development and design
capability (Dhingra 2004) by utilising the inspirational fabric base (Chandra 2005) for
Indian apparel manufacturers was highlighted repeatedly for gaining competitive advantage
6
in exports. Problems plaguing Indian export are mainly inconsistent quality and delivery
and higher lead time (Koshy and Jana 2000).
With the low-value low-quality concept, not much importance was given to strengthen
production facilities. Industry structure can be characterised by largely proprietorship or
partnership firms without any joint ventures, technical collaborations, strategic alliances or
subsidiary operations (Koshy 1997b). The crucial value chain is missing due to the absence
of a world-class domestic market (Prahlad 1993) and (Porter and Ghemwat 1994). Even
though technology had improved world-wide for apparel manufacturing, Indian clothing
industry mainly used outdated machines due to prohibitive duty on imported machines and
investment restrictions due to garment manufacturing being reserved for the small scale
sector (Jana 1999).
Typical strengths of the Indian apparel industry are strong raw material base, fully factored
manufacturing, ability to execute small and large order quantity, value added merchandise,
design and product development capability. An English speaking population and political
and economical stability and ethical manufacturing practice add to the confidence of
overseas retailers. The weaknesses are inconsistent quality (Bheda et al. 2003), poor
delivery (Chandra 2006, Koshy and Jana 2000), long lead time (Pandey 2002, Dhingra
2004, Chandra 2006, Karandikar 2005), low productivity (Bheda et al. 2003, Dhingra
2004), and poor support infrastructure (Dhingra 2004). India has clear geographical
specialisations, like NCR (Northern Capital Regions) for fashion; Chennai for shirts;
Bangalore for structured garments/trousers; Tirupur for knitwear; Ludhiana for sweaters
and Panipat, Karur and Cannanore for home furnishing (Trend Fusion 2005).
A traditional fully factored manufacturing base, Indias (unit value realisation) UVR
increased from 13.73 per kg. to 15.11 per kg. during 2005 in Europe while average
import UVR for Europe reduced by 2 percent (Trend Fusion 2007). The design and
development capability is increasing and getting global recognition as design outsourcing
hub. Munch Design Studio, Grace Group and Bricolage are pioneers in this segment (Trend
Fusion 2007). Flexibility (Jana 2000), ability to execute small order quantity, and an
English speaking population (Trend Fusion 2006) give additional advantage over
neighbours. With such a diverse yet challenging market, there are ample opportunities for
improvement.
The structure of the Indian garment industry is complex as much as it is diverse, it is highly
fragmented and a large part of it is unorganised (Krishnan 2001). In tune with the global
paradigm shift towards speed and replenishment sourcing of merchandise (Oxborrow and
Massey 2000), (Abernathy et al. 1999a), India is facing pressure from EU and US retailers
to execute orders in faster lead times (ApparelOnline 2000), (Dhingra 2004), (Trend Fusion
2005). Indian export remains cotton-based, value addition remains low, as the processing
sector is a weak link (Subbu 2003). Also in tune with increasing importance being given to
design innovation capabilities of the manufacturer (Kerr 1999) and the shifting of product
development functions from retailer to manufacturer (Watson 2002),
Indian apparel
manufacturers specially in NCR are required to develop and exhibit their own product
development capability as order winning criteria (ApparelOnline 2003, 2008). This
combination of factors creates the base of this investigation.
1.4
Aim of Investigation
The aim of this investigation is to identify the critical issues concerning production lead
time for contract apparel manufacturing supply chain, analyse the reasons behind delay in
lead time, evaluate different improvement options, and suggest easy to use rationale-driven
practical solutions.
1.5
In overall furtherance of achieving the stated aim, this paper has been subdivided into
several sections. The objectives assigned devolve from the overall aim, as mandated by the
splitting up of the subject into segments. These are as listed infra:
1.6
While some applied research had taken place in Europe (Apparel & Textile Challenge
1997, JBA 1998) and USA (JBA 1998) in demand-supply performance measures in the
chain, such as Demand Activated Manufacturing Architecture (Chapman et al. 2000), the
core manufacturing and related areas remained largely unexplored. Research in the Indian
apparel and textile supply chain is still at a nascent stage. With the Indian apparel and
textile industry constituting about 15 percent of industrial production, four percent of the
GDP and 17 percent of the countrys export earnings, this research has tremendous
importance in the emerging Indian economy.
The current research is focussed on the activities of the Indian apparel manufacturer
exporter engaged in cut-make-trim or fully factored manufacturing. Though the specifics
pertain to the Indian apparel manufacturer exporter, it is expected that the generic principle
would be applicable for any apparel manufacturer exporter in South Asian countries where
circumstances in the field of apparel are similar.
The scope of research is the manufacturing domain, primarily because very little work has
been done globally on the manufacturing area of apparel supply chain and virtually no
work is being done on the pre-production area of the Indian apparel manufacturing
industry. In the outsourced manufacturing scenario in apparel, the total supply chain is
decoupled and may be divided into three sections: first, design and concept development;
second, sourcing and manufacturing and third, shipping, warehousing and retailing.
Geographically, the first and third sections are still being done in the importing country
(typically developed countries) and the second section, i.e., sourcing and manufacturing is
done in the exporting country (typically underdeveloped or developing countries). Extant
literature tends to emphasise the first and third sections, whereas negligible insight is
available to sourcing and manufacturing by contract manufacturers. From the contract
manufacturers perspective, they have direct control over activities after a confirmed/
prospective order is received till the merchandise is shipped out of the factory. To impart
value to the output of this research insofar as contract manufacturers are concerned, it is
essential to study the second section (sourcing and manufacturing) in depth and explore
opportunities to reduce manufacturing lead time.
After the abolition of WTO's Agreement on Textiles and Clothing (ATC) with effect from
01 January 2005, categorisation of the Indian apparel industry into domestic and export
became insignificant. Now there are many cases of the same organisation producing for the
domestic as well as export market. Indian retailers like Big Bazaar, Westside, Lifestyle,
and brands like Blackberrys are already sourcing merchandise from countries like
Bangladesh and China. Such phenomena will compel Indian organisations to increase their
supply chain efficiency by reducing lead time to compete with global brands. Research in
apparel and textile supply chain focussing on reduction of lead time and improving overall
operational efficiency by reduction of non-value added time and finally, benchmarking
10
against global competition holds out the promise of tremendous benefits for domestic as
well as export apparel manufacturing organisations in India.
1.7
Research Design
The evolution of supply chain as a concept has been studied by contemporary researchers
like Forrester, Burbidge, Towill and others, while background research on concepts and
different supply chain models that are prevalent in apparel and textile and other industries
has been addressed by leading researchers like Macbeth, Christopher, Porter, Harland,
Schonberger, Gattorna, Womack, Jones and others (see bibliography). Global apparel trade
was studied from Gereffi, Dickerson, Jones and agency websites like ITC, Geneva,
UNIDO, WTO, Indian and US Govt. websites and magazines like Textile Outlook
International, etc.
The Indian apparel industry, its development and characteristics was studied from Khanna,
Koshy, Raman, several organisations or institutions like Apparel Export Promotion council
(AEPC), Indian Institute of Foreign Trade (IIFT), and National Institute of Fashion
Technology (NIFT), reports and leading trade magazines like ApparelOnline.
Current research in apparel and supply chain management areas was studied from journals
like Journal of Fashion Marketing and Management, International Journal of Operation and
Production Management, Supply Chain Management: An International Journal,
International Journal of Clothing Science and Technology, International Journal of
Logistics Management, International Journal of Physical Distribution and Logistics
Management, International Journal of Logistics Management. Reports from Apparel and
Textile Challenge, Industry Forum (UK), Sandia National Laboratories (US), Kurt Salmon
Associates, [TC]2, Council of Logistics Management, etc. Conference papers from Textile
Institute (UK), dissertations at Nottingham Trent University (NTU), (Indian Institute of
Technology (IIT), and National Institute of Fashion Technology (NIFT) as well as
internship reports at the last named Institute.
11
Current market development on the ibid subjects is available from e-journals like Just-Style
(www.just-style.com), Supply Chain Council (www.supply-chain.org), APICS.org
(www.apics.org), Techexchange (www.techexchange.com), and Journal of Textile and
Apparel, Technology and Management (www.tx.ncsu.edu/jtatm/). Market research
organisations like Karabas Management System, David Rigby Associates, Mintel, World
Trade Organisation were studied to understand the retail scenario and current
developmental trends. Catalogues, brochures and white papers from software solutions
providers like SAP, i2 Technologies, Justwin, Manugistics, JD Edwards, Lawson, Geac etc.
were read. Research databases like Emerald, Ebsco, Google Scholar and Google e-book
were used extensively to refer to books and peer reviewed articles.
Besides background knowledge from literature, there was innate awareness stemming from
involvement with the Indian clothing industry as a Professor of Garment Manufacturing
Technology department at National Institute of Fashion Technology (NIFT), India.
Background knowledge also allowed for additional research sources to be applied during
this research through the means of internship and industry-linked assignment. Current
knowledge was also gathered through the alumni circle in India and South East Asian
countries.
Initial cross sectional researches were conducted through questionnaires, case studies and
focus group reviews. This helped to clarify research issues, cross check different views and
acted as a prelude to focussed longitudinal research. Longitudinal study was carried out to
identify and measure value added and non-value added time in pre-production activities,
and to study the applicability of different optimisation techniques to reduce lead time from
the manufacturing cycle. As the researcher had easy and fruitful access to Indian apparel
manufacturers, focus groups were used frequently to understand the key issues from senior
executives; case studies were used under full management support to test-pilot new
concepts and also share results with other manufacturers for critical review. As the
researcher was an instructor in NIFT, students were assigned to monitor and follow up
some cases at an organisations site, thereby enabling better breadth and depth and the
facility to carry out experiments on multiple samples during the research.
12
1.8
Research Publications
Some of the work included in this thesis has already been published during the extended
period of the research.
During 2001-02, an article titled Supply Chain Dynamics in Indian Apparel Export
Manufacturing: Collaborative Product Development based on a case study was
published in three different journals; Clothesline, a print journal in India, Just Style
(www.Just-Style.com), an international e-journal from the U.K. and Techexchange
(www.techexchange.com), an international e-journal from the U.S.
A case study on critical chain implementation was the first time ever in the global
apparel industry that such a theory saw application. One article titled The Critical
Chain Approach to Apparel Production was published in two international e-journals,
Just Style (www.Just-Style.com) and Techexchange (www.techexchange.com)
and
The outcome of longitudinal research on supply chain measurement metrics was well
accepted by industry and is currently being used by several organisations for testing its
utility. A two part article titled Measuring Efficiency of a Supply Chain was published
13
One paper was also selected for presentation in the 1st Indian Supply Chain Summit in
New Delhi, organised by India Supply Chain Council (http://www.supplychains.in/) on
March 01, 2007.
Another Paper, titled Integrated TNA in Apparel Merchandising was presented in the
4th International Conference on Apparel & Home Textiles, ICAHT 08, held in New
Delhi between 26 - 27 September 2008.
1.9
Summary
As a global sourcing destination, Indias core competencies are innovative and value-added
merchandise with flexibility in production volume. Apart from being a contract
manufacturer, India is trying to establish itself as full-service manufacturer. problems
plaguing Indian export were mainly quality and delivery time related, out of tune with the
global paradigm shift towards speed and replenishment sourcing of merchandise, leading to
pressure from overseas retailers to execute orders in faster lead times, if it wanted to remain
a global player in this field. While previous research primarily aimed from retailers
perspective, a research is need of the day for assessing supply chain requirements from a
contract manufacturers point of view to meet the increasing demand of quicker delivery
from retailers. Research should address small and medium enterprises (SME) towards
identifying a generic solution, implementable across organisations with minimal
investment.
14
Chapter Two:
2.0
Literature Review
Literature from secondary sources are studied and analysed in this chapter in the context of
research objectives. Material and information flow, different trading partners and different
product development processes in apparel as well as other industries were studied.
Different techniques available for identification of delays in a supply chain and different
optimisation techniques available for lead time reduction were also studied and analysed in
detail to select the appropriate research design and methodology.
2.1
Defining Supply Chain Management is a rather daunting task due to its dynamic nature and
continuous evolution over the years. There appears to be little consensus on the definition
of the term supply chain management (New, 1997; Lummus et al. 2001; Mentzer et al.
2001; Kauffman, 2002). There is also a high degree of variability in peoples minds about
what it meant (Kathawala and Abdou 2003). There are three almost similar terminologies:
first, supply chain; second, supply chain orientation and third, supply chain management
(SCM); the last one being most commonly used, extensively studied and referenced by
researchers. Mentzer et al. (2001) called this a phenomenon that exists in a business
environment. In other words, a supply chain may exist, but may not necessarily be
managed. For clearer understanding, a supply chain will be defined first, followed by
what supply chain orientation is and then what supply chain management is.
Supply Chain has been defined as an interconnected set of business processes and trading
partners that manages the flow of goods and information from the point of design to the
delivery of the product or service to the end customers (Kinaxis 1999). Another interesting
definition is A supply chain is a series of customer and supplier relationships that form an
interwoven set of binding links in a seamless and integrated fashion delivering a high-level
of customer satisfaction (Watts et al. 1999). A business need is multifaceted, where the
15
also used in
numerous documents (McCormack et al. 2002, Gattorna et al. 2003). However all three
terminologies convey the same meaning in the overall context and in this document supply
chain will be used as a word.
The coordination of a supply chain from an overall system perspective with each of the
tactical activities of distribution flows viewed within a broader strategic context is more
accurately called a Supply Chain Orientation and actual control of this orientation across
various companies in the supply chain is more appropriately called Supply Chain
Management (SCM) (Council of Logistics management 2001). According to Roger
Blackwell, a business professor at Ohio State University, Supply Chain Management is all
about having the right product in the right place, at the right price, at the right time, and in
16
the right condition (Stein and Sweat 1998). Mentzer et al. (2001) proposed a definition of
supply chain management that is broad, not confined to any specific discipline and
adequately reflecting the breadth of issues that are usually covered under this term:
discussed concepts concerning the flow of goods and information across organisations
17
(Burgess et al. 2006), which reinstated the importance of goods and information flow in
supply chain.
Literature supported the view that the integration of key business processes within and
across companies that add value for customers and other stakeholders could be called SCM
(Cooper et al. 1997; Bechtel and Jayaram 1997). Operations management literature also
identified processes linked to SCM such as logistics, New Product Development (NPD),
customisation and distribution of goods, including the balancing of demand needs and
capacity requirements in the transformation of raw materials into final products delivered to
customers (Lee 1993). Within the logistics discipline, Cooper and Ellram (1990) defined
SCM as an integrative philosophy to manage the total flow of a distribution channel from
supplier to the ultimate user. Both Harland (1996) and Christopher (1998) reached another
conclusion; instead of managing flows, SCM was seen as the management of a network.
Harland (1996) defined SCM as the management of a network of interconnected
businesses involved in the ultimate provision of product and service packages required by
end customers. Rather than looking at SCM as the management of a vertical pipeline of
inter-linked firms, Harland (1996) considered SCM as management of a complex network
of organisations involved in exchange processes. Some scholars (e.g. Christopher 1998;
Heikkil, 2002) also suggested that supply chain management should really be termed
demand chain management to reflect the fact that the chain is driven by the marketplace
to satisfy the needs of the end-users. Although different researchers talked about several
distinct yet interrelated flows in a supply chain like ownership flow, payment flows (Paik et
al. 2007), financial flow and physical flow (Bussler and Haller 2005), human flow and cash
flow (Nguyen et al. 2007), the two important flows that drives the supply chain from the
point of view of this research are material flow and information flow (section 1.1).
Information is a key ingredient in making good supply chain decisions in all three levels of
decision making, i.e. strategic, planning and operations and each of the supply chain
drivers, i.e. inventory, transportation and facilities. Macbeth and Fergusson (1994)
classified the range of information flows into four major categories, technical, involvement,
18
business and people. The Technical category covered detailed specifications of what was to
be supplied in accurate media, while the involvement dimension accounted for
measurement and feedback processes on performance and degree of involvement in the
other partys decision-making processes. Business communication covered aspects of
relevance to the other party (in future) but was not immediately key to current activity; the
people aspects recognised the need to signal personnel structures and role changes. As
explained in Chapter One, information flows both ways in a supply chain. While the market
information flowed upstream from the marketplace, a second important flow of
information, called fulfilment information (Popp et al. 2001), flowed downstream.
Fulfilment information detailed the progress of suppliers in meeting orders. Logically, if
the order information decoupling point was to be positioned as far upstream as possible,
then the fulfilment information decoupling point needed to be positioned as far downstream
as possible. In other words, undistorted information about fulfilment needed to be available
in timely fashion throughout the supply chain (Popp et al. 2001). Mason-Jones and Towill
(1999c) demonstrated through simulation that moving the information decoupling point as
far upstream as possible, by ensuring access to undistorted market order information to all
members of a supply chain, had beneficial consequences for the supply chains as a whole.
However, they also went on to note that in many supply chains, only the player closest to
the end customer had the luxury of knowing the true demand because the information
decoupling point was traditionally at the marketplace or with the retailer. As a consequence
of the traditional attitude that information is power, companies deliberately distorted order
information to mask their intent not only to the competitors, but even to their suppliers
(Pagh and Cooper 1998).
The term bullwhip effect was first coined by the logistics executives of Procter and
Gamble (Lee et al. 1997) when they experienced extensive demand amplifications for their
diaper product Pampers. It is so-called because small order variability at the customer
level amplifies the orders for upstream players. The first research to extensively study the
amplification of demand information in a supply chain was reported by Forrester (Forrester
1961) while an empirical study of industrial dynamic control problems was done by Van
Aken (Van Aken 1978 cited in Fransoo et al. 2000). While studying the causes of this
demand amplification, Forrester identified two types of delay, namely the delay of
transferring demand information and the delay of transferring physical products through the
supply chain (lead time). While Sterman (1989) argued that the bullwhip effect was caused
by irrational decision making of participants, Lee (1993) no longer blamed the irrational
behaviour of decision makers for the bullwhip effect. Instead, they thought that the
bullwhip effect was a consequence of rational behaviour given the supply chain structure
and its related processes (Lee et al. 1997). Lee had discussed four possible causes of the
bullwhip effect: demand forecast updating, order batching, price fluctuation, and rationing
and shortage gaming. Demand forecast updates suggested that demand amplification
occurred due to the safety stock and long lead time. As orders were forecast and transmitted
along the supply chain, safety stocks were built up, and thus the bullwhip effect occurred.
Towill and his co-authors studied the bullwhip effect by using a computer simulation
model (Towill, 1991; Evans et al. 1993; Mason-Jones and Towill, 1999c; Towill and
McCullen, 1999). As a benchmark, they used the Forrester's simulation model comprised of
a retailer, a distributor, a factory warehouse and a factory. The results of their studies
indicated that information and material delays might be major contributing factors to the
bullwhip effect. When the authors eliminated the time delays in the model, the demand
amplification was significantly reduced. This result led to the argument that both material
and information delays could be possible causes of the bullwhip effect. Along with this,
they argued that the removal of one or more intermediaries led to the significant reduction
of the bullwhip effect. This argument was also reinforced by Ackere et al. (1993) and
Hong-Minh et al. (2000). Although recent work (Disney and Towill, 2003a; Dejonckheere
et al. 2003) showed that the bullwhip effect is not avoidable under order-up-to
replenishment policy whatever forecasting method is used, articles of Disney and Towill
(2003b, c) discussed the impact of vendor-managed inventory (VMI) system on the
20
bullwhip effect. Their analysis showed that, by implementing the VMI supply chain, both
rationing and order batching effect might be completely eliminated.
The shrinking profits for apparel manufacturers at the expense of retailers stable margin
over the last decade could be explained by this theory linked with the theory projected by
Hayes and Wheelwright in 1984, who described how demand volatility damaged profit
upstream. Paik (Paik et al. 2007), observed that when all nine possible causes of the
bullwhip effect were present in the simulation models, the following six factors were
statistically significant: demand forecast updating, order batching, material delays,
information delays, purchasing delays and level of echelons. Among these six factors,
demand forecast updating, level of echelons, and price variations were the three most
significant.
2.1.2 Material Flow in a Supply Chain
Material flow downstream in the supply chain ultimately reached the customer; however,
material types were very important. There are several way material types are classified;
fashion, commodities, durable and capital goods (Westbrook and New 2004) or fashion,
seasonal re-order product, and the perpetually replenished item (Abernathy et al. 1999a).
The role of product uniqueness (the fashion content of the merchandise) had several critical
implications on three parameters; the extent of information and knowledge sharing, cost
transparency and sharing of resources between actors within the chain (Fisher 1997).
The nature of the material flow, and the complexity relating to it depended on the existing
type of supplier-customer interface. The different types of interfaces are single sourcing,
preferred supplier agreements, tiered supplier interfaces, outsourcing sub-assemblies and
contracting out services (Westbrook and New 2004).
21
Product Type
Capital Goods
Commodities
Durable
Low
High
High
Fashion
Low
Environmental uncertainty
Figure 2.1
Product complexity
These sourcing policies worked to reduce the overall complexity of the system either
through simplification or by paying a premium to some external party for managing the
unwanted uncertainty.
etc. to see where improvements could be made. For any reduction in lead times to be
effective, one needed to make staged commitments and share the risk, starting with
capacity and raw materials.
Figure 2.2
Short lifecycle products and long lifecycle products have different priorities or pain points
(Karabas and Granovsky 2003) in managing a supply chain. According to Karabas and
Granovsky (2003), retailers selling short lifecycle products like fashion and seasonal should
concentrate on areas like assortment, allocation, promotion planning and markdown
management, whereas retailers selling long life cycle products, e.g. commodity clothing,
classic styles should focus on replenishment, initial pricing, promotional planning and store
space management.
23
Figure 2.3
Traditionally, commodity products really driven by brand/value, like underwear, socks, Tshirts, jeans, etc. used to be dominated by the large corporations, who operate superefficient supply chains, whereas the smaller companies dealt with fashion-oriented
merchandise, where perhaps super-efficient supply chains and cost weren't the driving
reasons for being in business (Bobbin 2000). However, in the recent past, Zara proved the
concept wrong. Zara is a $ 1.6 billion turnover fashion retailer with 500 stores across 58
countries, but manages very efficient and flexible supply chain through own production
units in Spain, and manages 20-30 days design to sales cycle time (Watson 2002).
The interdependent relationship of merchandise type and market demand was, essentially,
the business driver of cost and time. From the moment when decisions were made about
sourcing and procurement of material through the manufacturing to the final distribution
and after-market support, logistics lead time management (Christopher 2006a) gained
utmost importance. Originating from the manufacturer, there were three channels of
distribution of goods to the customer (end user); first through distributor/wholesaler and
retailer, second only through the retailer and third, direct to customer (Gattorna 1998b).
Various formats of these three distribution channels are listed in table 2.1.
24
Table 2.1
Type
Formats
Manufacturer
> Buying consortium, One step distribution, Two
Distributor/Wholesaler > Retailer step distribution
> Customer
Manufacturer
Customer
>
Retailer
Three types of costs were found to be high in the traditional retail distribution model;
forced markdown to clear out unsold goods, lost sales from stock outs, and the costs
associated with holding inventory. Lean retailing concept holds a promise for the future as
it minimises or replaces inventory with information (Abernathy et al. 1999a) as a
competitive strategy and relies on a smaller number of suppliers.
2.2
Different trading partners in the supply chain, their types, roles and responsibilities,
relationship between them (conceptual structure) and flows (physical structure) determined
the efficiency of the supply chain. A generic model of supply chain described by Likert
(Figure 2.4) showed an integrating structure which had linking people assisting the free
flow of information both vertically and horizontally within the organisational system
(Likert 1997 cited in Massey 2000).
25
Figure 2.4
The classification of SCM could be from a conceptual angle (Gereffi 1999), (Burgess et al.
2006, Fisher 1997, Yeung et al. 2007) or a structural angle (Rice and Hoppe 2001c, Hines
1994); the conceptual classification dealt with the constructs and structural classification
dealt with the linkage of different echelons in the network.
A Supply chain can be classified either based on relationship (Yeung et al. 2007, Burgess
et al. 2006), product type (Fisher 1997), or market drive (Gereffi 1999 cited in Tyler et al.
2006). According to Yeung, the relationship between an organisation, its supplier and its
customer could be divided into three categories. Monopolistic was where a single company
owned nearly the entire market for a given type of product or service; in an oligarchy, a few
or a small exclusive group of companies ruled the market, and a free market was open to all
for free competition. Apparel manufacturers, who trust only a few buyers closely and deal
with limited retailers, but source raw material from many suppliers depending on variety
26
Burgesss (Burgess et al. 2006) classification talks about a set of seven constructs:
leadership, intra- and inter-organisational relationships, logistics, process improvement
orientation, information system, and business results and outcomes. Leadership captured
the strategic nature of SCM and the need for the senior management team to be proactively
involved; intra- and inter-organisational relationships focussed on the nature and type of
social and economic associations between stakeholders both within and between
organisations; logistics described the issues associated with movement of materials within
and between entities in a supply chain; process improvement orientation facilitated
interactions within and between organisations, with a view to continually improving them;
information system covered aspects of communication both within and between
organisations and business results and outcomes captured performance related outcomes
that accrued to organisations from adopting strong SCM orientation.
Product based classification talks about innovative products (e.g. fashion merchandise) and
functional products (perpetually replenished merchandise). While a supply chain for
fashion product needed speed and flexibility, or agility, as their primary concern, chains for
functional products had to be lean and cost efficient, since volatility of specification and
demand was low.
Gereffis market drive theory talks about whether the chain is upstream controlled
(producer driven) or downstream controlled (buyer driven). During the 1960s, textile
supply chains were producer driven; large fibre producers (Du Pont, Courtaulds, etc.)
indirectly used to influence market directions (Rigby and Bryne 2000). However during the
80s and 90s, significant power shifted from manufacturers to retailers because of
consumer patronage (Drucker 1992). Clothing, shoes, office supplies, toys, etc. were
classified as buyer driven, whereas automobiles, aircraft, computers, heavy machinery, etc.
27
were producer driven. Gereffi (1999 cited in Tyler et al. 2006) noted that profits in buyerdriven chains are derived not from scale, volume and technological advances as in
producer-driven chains, but from unique combinations of high-value research, design,
sales, marketing and financial services that allow the retailers, branded marketers and
branded manufacturers to act as strategic brokers in linking overseas factories with
evolving product niches in the main consumer markets. In the apparel supply chain, the
relationship-based classification really did not apply as, unlike automobile and aircraft
manufacturing, the apparel industry sold to a free market. In the case of Indian
manufacturers, the supply was buying-house driven and because Indias strength lay in
valued added fashion merchandise (Koshy 1995, Chandra 2005), the supply chain needed
to support quicker lead times. To a certain extent, the Indian supply chain was flexible
(Jana 2000) due to concentration of small and medium entrepreneurs and use of outsourced
capacity in production.
2.2.2. Structural Classification
Under structural classification, the supply chain is classified based on flow pattern and
presence of echelons in the supply chain. There are tier systems (Hines 1994), network
systems (Rice and Hoppe 2001c), and systems based on the virtual shape of the network
(Macbeth and Fergusson 1994). The Japanese automotive network works with a tiered
system, where the assembler is the customer for the first tier supplier (and would normally
be concerned with only the first tier); the first tier supplier is the customer for the second
tier supplier and would control them and so on. A networks main components of actors,
resources and activities are linked and form a dependency on each other, the ultimate goal
being to deliver effective product or service. This seamless link is either described as
network sourcing (Hines 1994) or partnership sourcing (Macbeth and Fergusson 94).
Shapes of networks vary based on product type, flow of goods and information, etc. A
completely disconnected network is vertically integrated; partially overlapped and
completely overlapped are horizontally spread and generally fits apparel. However Zara is
a good exception as it has a completely disconnected network.
28
Figure 2.5
Completely
Partially
Disconnected Networks
Network
Highly
Limited
vertically
Overlapping
Completely
Overlapping Network
vs.
branded
integrated
retailers
manufacturers-retailers
Levis
retailers.
apparel.
sold
through
that
manufacturers
source
in
Southeast Asia.
Macbeth and Fergusson classified supply chain based on the virtual shape of the network
(Macbeth and Fergusson 1994). The four classifications are I-V-A-T, where the letters
suggests the virtual pattern of inter-organisational material flow. The I shape is the
unidirectional vertical enterprise. A V shaped network starts with limited raw material at
the input stage and a wide variety of finished products with product variety determined
early in the transformation process. Examples are textile fibre, metal fabrication, etc. An
A shaped network has numerous raw materials at the input stage with limited variety of
finished products, e.g. aerospace and food retail. A T shape tries to keep a simple flow
path until the latest possible moment before suddenly branching out into a wide variety of
finished products, e.g. in electronics and home appliances. The T shaped network is
favourable from the supply chain management point of view, since the decision on the final
product specification is delayed till the end, thereby supporting fast response to varying
demand of customers (Macbeth and Fergusson 1994). However due to multi-sourcing
practice when the apparel and textile supply chain is compared with automobile supply
29
chain, both can look alike, as A shaped, due to similarity with the tier manufacturing
concept.
Figure 2.6
Orders
Final Assembly
Sub-assembly
Raw
Materials
Even single-sourcing offers great benefit in quality consistency (Macbeth and Fergusson
1994). However, the final retailer may have to deal with multi-sourcing if various products
are not available from one vendor. Multi-sourcing is also inherently more expensive in
administration costs than single-sourcing (Macbeth and Fergusson 1994). Sharing of
information without any diminution across a wide area of activity does not prevent one
continuing to use it, but sharing information between two competing entities can be
problematic (Macbeth and Fergusson 1994).
30
The different ways a contract manufacturing supply chain works (retailer can source
merchandise from manufacturer) depends on three factors: retail DC, product types,
sourcing types and non-cost factors (Walwyn 2002), like political situation,
language/cultural barriers, raw material supply, etc.
31
Figure 2.7
While Koshy tried to classify the supply chain based on product and market, here an effort
has been made to first generalise the different trading partners and then their respective
positions in the supply chain. Different combinations of the supply chain work by
triggering different trading partners on or off. In Figure 2.7, there are four different options
of information flow between retailer and manufacturer involving one or two nominal
trading partners in between; similarly, there are two options of material flow channel when
goods are shipped. So there are eight (four multiplied by two) different procurement
channel options. Similarly there are options of inspection and compliance too.
For
example, one retailer may procure via retailer-central buying office-liaison officemanufacturer route (for example, Gap Inc. for India), while the second retailer procures
through the retailer-liaison office-manufacturer route (for example, H&M for India).
32
From the country perspective, it is important to note that while an importer or central
buying office is located in the same country as the retailer, the liaison office/buying agent is
located in the manufacturers country. Similarly, in a material flow channel, freight
forwarders are located in the manufacturers country and wholesaler and DCs are located in
the retailers country.
Information flow in the supply chain shows garment and raw material inspections were
routed through the buying agent and/or liaison offices, but the compliance function may
totally bypass the in-between nominal trading partners and establish direct communication
with the manufacturer. Every manufacturer/retailer must identify the key players (the
nominal trading partners) in terms of demonstrated skills, developed tools and depth and
breadth of relationship with the next trading partner in the chain. Once roles and
investments are determined, the supply chain can maximise economic value for the each
market segment. (Gattorna 1998c).
increased the scope of the role played by intermediaries in the global supply chain. Casson
states, Market making intermediation is one of the most important sources of added value
in the entire economy (Casson 1997a).
In this context, merchant apparel exporters (Raman 1995), specially in NCR in India
cannot be termed as intermediaries; instead, they can be compared with the impannatore of
Italy (Casson 1997b), where entrepreneurial merchants co-coordinate the dispersed
subcontracting network by importing necessary raw materials for the manufacturers
(subcontractors) and finally exporting the finished goods. Conversely, intermediations are
also a potential barrier to greater transparency in the supply chain and might be seen
frequently as a non-value added activity.
The evidence of intermediaries in the textile and clothing industry exists way back in
nineteenth century; the cotton industry of Lancashire, England was dependent on a dense
web of merchants and brokers for its pre-eminence in the world market (Popp 2000).
Casson identified five main tasks undertaken by market making intermediaries, namely
search, specification, negotiation, completion and enforcement (Casson 1997b). While the
search function included identifying additional capacity, better price and new products for a
buyer, it also gathered market intelligence regarding expansion and collaboration sales
trends for the manufacturer. Specification included comprehension and interpretation of
data and messages to overcome language and cultural barriers. In a partnership
environment, completion encompassed helping buyer and supplier achieving milestones
and even financial help like opening Letters of Credit (LC) on behalf of a buyer. Large
intermediaries also offered value added services like multi-country costing to enable a
buyer to decide where to source. The function of intermediaries varied from dictator to
handholding approach depending on the scenario, with the primary objective of getting
the work done.
benefit for custom products due to cost reduction tending to be superficial as intermediaries
passed on the same as their fee for service and made it difficult to believe customer service
could be better through a intermediary (Tedesco 2000). From the above analysis, it was
clear that intermediaries added value as specialised knowledge and information providers
to achieve economies of scale or scope in the business. Wherever they acted merely as
middlemen, they only added cost with no countervailing value-addition, leading inexorably
to their demise (Bhat 2002, Gupta 2004).
Whether any intermediary added value or cost to the supply chain was decided by many
factors. For example, an importer who procured in bulk from an overseas manufacturer and
stocked close to a retailer bore forecasting risk. For fashion garments an importer could add
value (as that merchandise could be procured by a retailer in zero lead time) and for basic
garments it could add cost (as that merchandise could be procured by a retailer with a
longer lead time). Again, for small retailers the same importer could add value (as a
retailer may not afford direct procurement due to small scale of operation) but to a large
retailer, it was only addition of cost (as the large retailer could procure directly). It was also
observed that all nominal trading partners might not perform all five tasks, for example
fibre and cloth merchants had no role in enforcement but testing laboratory had an
important role in enforcement. Casson classified the role of intermediaries under five
different task heads: search, specification, negotiation, completion and enforcement
(Casson 1997b) for possible value addition and/ or cost addition in the whole supply chain.
other products (say, kids wear) depending on exposure. Thus the intermediary would
gradually hold more and more kids wear knowledge (which was not required by his
trading partner). Then he could become a trading partner of another retailer looking for
sourcing kids wear from an Indian manufacturer.
Buying houses, liaison offices/importers played a very controversial yet important role in
the procurement channel. Their role as intermediaries evolved over the years. The role of
intermediaries in the Indian scenario was summed up as:
30 years ago...the buying office function was primarily one of 'order follow up i.e.
completion; quality check, i.e. enforcement. Factory and vendor evaluation, i.e. search and
negotiation was slowly added and the search was widened to include product availabilities.
Presently the criteria of a good versus an average buying office/agent are where product
development design is also offered. Buying Offices are marketing offices of their locations
and this is true of whether you are a liaison office or an agent. In no way can we consider
the office as a mere intermediary.
(Kapur 2003)
Different intermediaries in the channels were not merely adding time. Their position in the
channel was determined depending on how every intermediary added value to the total
chain. If any player did not add value, he simply ceased to exist (Bhatt 2001).
It may be noted that all the above parameters influenced the product development processes
in a synchronised manner, depending on different procurement channels. For example WalMart could procure merchandise for its private label Faded Glory through its own liaison
office in different countries or an importer based in the U.S.
2.2.5 Vertical Integration to Partnership Model
2.2.5.1
Vertical Integration
36
to control critical activities in the chain of supply (Kumpe and Bolwijn 1988). Additionally,
vertical integration offered complementary benefits of matching assets in the chain (Doz
1988, Mowery 1988 and Teece 1986). Vertically integrated networks were basically
product oriented networks. In the recent past, however, there has been a decline in
vertical integration as a means of managing the apparel supply chain. Rigby & Bryne
(Rigby and Bryne 2000) cited continuously increasing product variety as the main reason.
The supply chain was increasingly being used as an alternative form of market organisation
earlier known as vertical integration (Ellram 1991). Porter (Porter 1988) and Thackray
(1986) identified systematic vertical disintegration in manufacturing industries including
automotive, machine tools, consumer appliances, etc. Interestingly, Zara of Spain is a rare
example of vertically integrated apparel operations owning retail, logistics, and fabric
cutting and dyeing to product design operations (Christopher 1998, Rice and Hoppe
2001b).
Some of the other recent examples towards vertical integration are textile city in Mexico
(Middlebrook and Zepeda 2003), Xiqiao Light Textile City in China (Li and Fung 2006)
and Brandix Apparel City in India (Just-Style 2007). While it was denim concentration in
Mexico, the Chinese city had a comprehensive production chain from product R&D,
material production, weaving, dyeing & finishing, fashion design to sale and export of
finished apparel. The Brandix group produces exclusive casual trousers, inner and active
wear, textiles, knitted fabrics, sewing and embroidery thread, accessories and hangers and
also offers wet processing and finishing as well as fabric printing. There are several
advantages and disadvantages of vertical integration; while there is better control, faster
communication and lower cost, it also leads to limiting competition, less flexibility and
higher risk, etc. The advantages and disadvantages are listed in the table 2.2
Table 2.2
Advantages
Control
More difficult for non-integrated firms to
enter business
Weakens non-integrated competitors
Reduces uncertainty in costs, quality and
quantity of supply
Convergent expectations
Reduces probability of externalities, like
Disadvantages
Diseconomies
Balancing scale of economies
Volume requirements vary by process
Firm has insufficient volume to achieve scale
Inability of management to control large
organisations effectively
Increased inefficiency
Large size of firm
37
Risk
Asset concentration
Exit barriers
Perpetuate obsolete processes
Exaggerate synergies
Limiting competition
Inability of market integration to replicate
market incentives
Less awareness of market issues
Partnership
The
concept of tier manufacturing is not very common in apparel and textiles, though in NCR
India, the second tier converters e.g. sewing contractors, embroidery contractors, wet
processing contractors, mentioned as apparel contractors by Raman (1995) often fitted in
the chain, providing flexibility to large manufacturers. In apparel and textile supply chains,
38
retailers partnered with the manufacturer and manufacturers partnered with trims and
accessories suppliers.
The essence of partnership is trust, which played a significant role in collaboration. Marks
and Spencers erstwhile partnership with UK manufacturers speaks about the unmatchable
trust and loyalty achieved in those years (up to late 20th century).
When the going was good, the M & S suppliers reaped the benefit and acquired for
themselves Rolls Royce cars, trophy wives and villas in Spain. When the going got tough
they were expected to cut their margins and make a contribution. .M & S would often
invest millions of pound in a suppliers factory or technology simply on the basis of a
conversation or handshake.
(Bevan 2007)
In the apparel industry, another form of partnership existed, through accreditation (also
known as approved or nominated). Fabric suppliers, accessories suppliers, fabricators
(sewing contractors) and even apparel manufacturers entered the supply chain often
through accreditation by a buyer. The Lycra Assured program was a new, close partnership
between DuPont and leading fabric mills. The concept would progressively broaden to
include yarn suppliers and garment makers and the buyers would also be able to connect
with approved suppliers of quality yarns and fabrics via a sophisticated global database
(Just-Style 2000).
Exploit
economies
of
l
Fill product line
gaps
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
new
Increase capacity
utilization
Y
Y
Y
Y
Y
Y
Penetrate
markets
Leapfrog product
technology
Share
risks
Developmental
costs sharing
Acquisition
Merger
Core Business JV
Sales JV
upstream
Table: 2.3
Y
Y
Y
39
Production JV
Y
Y
Development JV
Y
Y
Product Swap
Y
Y
Production
Y
Y
Y
Y
License
Technology
Y
Y
Alliance
Development
Y
Y
Y
License
Source: Technology Strategies, MCB, July/August 1993
Y
Y
Y
Y
Y
Y
Y
The meaning of partnership was best summarised by Carlisle and Parker who talked about
a few important parameters; trust, willingness to become vulnerable, sensitivity to each
others need, and high level of clear and candid communication (John Carlisle and Bob
Parker cited in Macbeth and Fergusson 1994). Three key factors redefined the way in
which the industry thought about relationships between trading partners. Hines (2004b)
combined six broad types of relationship into three categories: adversarial, partnership and
integrated. Adversarial maintained arms length where emphasis was on price. Partnership
could be co-operative, co-ordinated or collaborative in nature, based on relationship.
Integration could be joint venture or vertically integrated where emphasis lay on sharing
risk and rewards, owned and controlled by a single organisation.
Large assemblers in case of automobile industry and high street retailers in the case of the
apparel industry assumed leadership and integrated the supply chain (Stevens 1989) to
some kind of virtual corporations (Johansson et al. 1993). By handling core supply chain
functions themselves, some large apparel manufacturers were still able to respond quickly.
Companies like the Esquel group, with 47000 employees from China, became one-stop
sources for big apparel brands like Nike; these were part of an integrated supply chain
(Ayers 2006). On the other hand there are asset-light companies, with little or no fixed
overhead cost that recommend reliance on big trading partners, large retailers who naturally
assumed leadership position in apparel supply chain (Jurgen et al. 2000).
40
2.3
In Lees definition of SCM (1993), product development or new product development were
important activities in any supply chain. Womack and Jones defined product development
as the set of all specific actions to bring a specific product or service (or increasingly, a
combination of the two) through the three critical management tasks; problem solving,
information management and physical transformation (Womack and Jones 1996). The
importance of product development as a potential area of improvement in the supply chain
arose from two reasons; first, the requirement of the omnipresent retailers thirst (Jones
2006b) and second, the obvious step after lowering of component costs and per unit
manufacturing costs, the easily identifiable and achievable savings (Pearson and Knudsen
2003). The terms product development (PD) and new product development (NPD) are
found to be used interchangeably conveying the same meaning (Lim et al. 2006). A
generic NPD process can be analysed in three steps: planning, design, and production. In
the automotive industry, the planning phase is often referred to as the functional
specification phase, whereas the design and production steps are often referred to as the
detailed engineering phase (Clark and Fujimoto, 1991; Lamming, 1993; Womack et al.
1990).
Two parallel processes involved in the NPD are idea generation, product design, and detail
engineering on the one hand, with simultaneous market research and marketing analysis.
The balance of technological and marketing activities in NPD across industries is explained
by Trot (1998). In fast moving consumer goods and in apparel, marketing activities
increased, whereas, with steel or papers, technological activities increased.
41
Figure 2.8
To increase efficiency of PD, different researchers studied different routes, like concurrent
method of development (Nobeoka 1998 cited in Massey 2000), collaborative route (Justwin
2002) and supplier involved. Supplier involvement in the PD process could help reduce its
cycle time (Karlsson et al. 1998) as well as its cost (Droge et al. 1996; Jacobs and Herbig,
1998). The degree of supplier involvement in NPD depended on the complexity of the
technology outsourced, which would determine the degree of interdependence shared
between the manufacturer and the supplier, as shown in Figure 2.9.
Figure 2.9
42
The aim of any new PD is to reduce cost and time over-runs, limiting iterations, limiting
redundant (non-value added) activities, and maximise conversion (to production). Different
models are recommended by different researchers, Urban and Hauser, (1980), Gruenwald
(1992) and Himmelfarb (1992) provided examples of sequential models of the NPD
process, Cooper and Kleinschmidt (1986) fine tuned sequential model with 10 to 13
activities in an ordered list. Rochford and Rudelius (1992) obtained similar results using a
12 activity model.
Figure 2.10
Source: Urban and Hauser, (1980), Gruenwald (1992) and Himmelfarb (1992)
Product development in the apparel industry is still retailer driven and executed in
developed countries closer to consumption (Li 2007). Earlier, apparel product development
was seasonal, ranging from two seasons to six seasons (AAMA 1995). However, with fast
fashion, products were developed virtually continuously around the year (Mintel 2007).
Examples of simple, generic models of the PD process used in the apparel industry can be
found in the academic literature (Gaskill, 1992; Regan et al. 1998), trade literature (Fashion
Apparel Manufacturing, 1982; Garfield, 1985; Marketing Committee, 1989; Sadd, 1996)
and reference books (Burns and Bryant, 1997). Tyler (2008b) mentioned a five-stage
manufacturing cycle starting with product concept and culminating with bulk production.
Out of these five, the first four stages i.e. product concept, design sample, customer
approved sample and bulk trial can be termed as pre-production processes in a contract
manufacturing perspective.
The most comprehensive description of apparel product development process was found in
Plumlees six stage no-interval coherently phased product development (NICPPD) model
(Plumlee and Little 1998).
Phase one is line planning and research. The research and parameter establishment guides
the development process. Marketing, merchandising and design all contribute to this
research phase. The information gathered in Phase 1 formulates the creative direction of the
line.
Phase two is design/concept development phase. In this phase, the general line concept
identified by the line plan is translated to specific colour stories and concepts for the
multiple product groupings which will compose the line. Following the colour and concept
meeting to review initial plans, some firms take their concept selections to the consumer for
review. The mall intercept interview is a common strategy for conducting these concept
tests. Approved concepts are then translated into design specifications and sketches.
Phase three translates the line from sketches and specifications to actual samples of the
product line; material is evaluated and ordered to construct the prototype of each design to
be included in the line. Patterns are developed and fit standards finalised. Constructed
prototypes are evaluated for fit using a fit model and in some cases provided to a consumer
44
panel for wear testing. The prototypes are then reviewed by merchandising, marketing and
product development agents, culminating in final adoption of the line.
Phase four sees the line marketed to retail channels through markets and calls by sales
representatives. This process requires duplicating the prototype garments to provide
samples for the sales representatives and detailed costing to refine preliminary cost
estimates. Based on the response of buyers and retail accounts, the line may be modified.
Phase five is the pre-production phase and involves translating the prototypes and first
patterns in sample sizes into the complete size range (through grading) required for sale to
the consumer. Additionally, quality, production and process standards must be finalised in
preparation for manufacture. Sourcing and scheduling production according to sales
forecasts generated by sales to retail is also completed.
Phase six is line optimisation. In this phase, improvements are made to the line as orders
continue and sales forecasts are modified. Modifications may be made to the line to
enhance sales or to balance a line which is having erratic sales. Phase 6 may be cycled
through indefinitely as production continues, although the ideal is to have as little change
as possible at that stage of development.
While the NICPPD model allowed the researcher to visualise the impact of changing
business environment, processes, suppliers and customer requirements and identify
opportunities and establish priorities for research, it allowed the practitioner to benchmark
and modify apparel development processes, build the organisational structure required to
effectively execute the apparel development process; develop effective strategies for the
rapid product development required for line optimisation and market responsiveness and
strategically plan organisational and procedural changes to facilitate apparel development.
Birnbaum (2003) suggested a 101-step manufacturing cycle, starting with Designer attends
fabric show to Order ready for shipment, out of which the first 19 steps designed an inhouse PD activity; then the factory collected information (receives tech-pack). PD and preproduction activity continued till the 86th step, where the order was ready to cut. A study
by JBA (1998) among European and US organisations revealed that out of 167 days of
average supply lead time, product development consumed 104 days leaving approximately
25 percent of the lead time for manufacturing.
45
Apparel products do not exist in isolation, but are usually part of a portfolio of products
that, when manufactured, may share elements of the manufacturing process with other
products (Krishnan and Ulrich, 2001). Studies (Redfern and Davey 2003) showed that it
was possible for supply chain firms to improve success rate of a new PD through objective
measurement of customer perception. Kanos model of customer perception measurement
mapped customer satisfaction with three key product features: performance, described as
expected features, delighter features and linear features.
2.3.2
The apparel industry in India produces both small volume fashion (value added) garments
and large batch, commodity garments. The most popular business model applied in the
apparel industry is to keep design and colour selection at company headquarters or home
country and to outsource labour intensive production offshore (Li 2007). Once the colour,
silhouette
and
fabric
selection
process
is
completed
at
headquarters,
the
While PD and product sourcing are both followed in the Indian garment industry, people
tended to follow two different models of operations. Manufacturers involved in PD either
sourced/developed from/with numerous raw material/accessories vendors or only one
consolidator, who in turn are/were networked with numerous vendors to source (or
develop) and offer the total package to the manufacturer. For sourcing imported trims,
working with an accessory consolidator was a common practice.
ranges, sampling, and approval of sample in every channel (Li & Fung 2009, Triburg 2009,
CMT Sourcing 2009). Merchandise brands that laid more emphasis on silhouette/cut and
worked around basic colour palette might settle for alternate fabric sample during fit
approval (as fit is more important than look) while those merchandise brands that laid
emphasis on yarn dyed, prints and colours would ask for fit approval in the actual fabric
only. Catalogue buyers generally worked around colours and such visual effects in the
garments that could be communicated through catalogues (William E Connors &
Associates 2009). They generally avoided texture details and special feel effects (wash
effects) as customers would not be able to feel it during actual buying. Catalogue buyers
would ask for a photo shoot sample which should be correct in all respects. As what was
depicted in the catalogue was to be supplied to the customer, photo sample visual accuracy
was very important (Li & Fung 2009, CMT Sourcing 2009). Once a photograph was
inserted into the catalogue, merchandise details were not changed. In case of catalogue
buying, the logic was similar to stock to sell. The initial buying quantity was low and
repeat buying was common, to obviously minimise the risk factor.
Fabric development involves specific fibre composition, special yarn effect, special weaves
or knit effect, special surface print, special wash effect or any other means. In the fabric
development there is fabric construction as well as fabric colour approval (lab-dips, strike
off, desk loom etc.). All approvals require the actual sample to be couriered, while
comments (either approved or rejected) are often received by fax/e-mail. Electronic colour
management was not used by any manufacturers or buyers. However it was noticed that
colour approval process was gradually changing from subjective comments to objective
evaluation by mentioning delta value range for approval or rejection (ApparelOnline
2005).
In silhouette development, there are generally three stages of sample approval; prototype,
fit and finally size set. Developing the first pattern following a size chart and silhouette
could be a problematic and/or slow process. It was observed (Sareen 2006) that many did
not follow the concept of pattern development by altering the basic block but developed
new patterns every time. However in recent years, use of CAD and transferring pattern files
via e-mail has made the process comparatively faster. The prototype and fit sample
development is the most arduous task and multiple iterations are common. The reasons for
47
iterations are lack of market knowledge, faulty interpretation of instructions and lack of
technical understanding of fitting session at the buyers end (Sareen 2006, Mac 2006). No
electronic fitting (using fit simulation software) was found to be practised, thus inordinate
delays in the sampling process was common (Sareen 2008). Electronic virtual fitting can
reduce product development time to 10-15 days or by 50 percent (Sareen 2008).
Common accessories used are button, thread, zipper, etc. Developing new types of
accessories are rare. In the majority of cases, sourcing the right type of accessories (at most
dyed to match colour embossing, etc.) from a set of vendor bases was common practice.
Sometimes the finished merchandise required value addition, achieved by special dry or
wet processing techniques at the fabric or garment stage, or performing hand or machine
embroidery and/or attaching embellishments at fabric/cut panel/finished garment stage.
Labels and packaging materials were being either sourced from nominated vendors, or
sourced and then approved by the buyer.
Once pattern, sampling fabric and accessories were sourced, costing and size set were
prepared simultaneously. After approval of size set and agreement on costing, a sealer
sample (and any other buyer specific additional sampling request) was made and the
manufacturer initiated necessary steps for bulk sourcing of approved raw materials.
48
Figure 2.11
49
It is interesting to see that buying office decisions are either approved or rejected or
even approved with comments, which means subject to certain amendments. These are
often used for saving precious time during development. However, these also lead to
confusion due to differential interpretation of comments by manufacturers and buyers.
Often, the buying office dominates proceedings and manufacturers are always at the
receiving end as the end decision will decide confirmation of order.
Generally, the development pack, i.e. colour, silhouette and fabric (structure, texture etc.) is
sent to different manufacturers (maybe in different countries) to get an idea of actual
achievable parameters and achievable price of a style. Sometimes target price is also sent
along to match. After prototype and fit approval, the manufacturer is selected based on
quality, delivery capability and price quoted. Then a confirmed order is sent to the selected
manufacturer with specifications and other details of the style. During this post-order
merchandising stage, the manufacturer is expected to submit samples in actual production
fabric and trims for seal sample approval, which is referred to for all standards during
production. Three production sample were generally sent by manufacturer which is sealed
and one sent to warehouse, one kept at head office and one sent back to supplier (Hobbs
2002)
From Figure 2.11, the process flow is clear with dependency relationship. There are three
clear parallel process flows; fabric development, accessories development and pattern
development. All three process flow converges to one point at size set making, which
requires all three inputs. The organisations in India can be classified into three categories
(ApparelOnline 2007). There are large organisations, which cater to both basic
merchandise and fashion-basic merchandise. Then there are medium sized that are either
only fashion or only basic. Then there are small ones whose USP is fashion merchandise.
Although product development processes remain more or less similar, it is the execution
which changes. When compared with Plumlees six stage product development process
(section 2.3.1), for basic product, a manufacturer in India would probably get involved in
only two steps, i.e. prototype and pre-production sample development (Naik 2000, Chawla
2000, Banerjee 2003). Other activities like line planning and research, concept
development, marketing to retail channel and line optimisation are generally done by retail
organisation/brands themselves. In case of fashion products, a small manufacturer will be
50
involved in four stages except marketing to retail channel and line optimisation. In case of a
medium sized company making fashion products, having offices and design studio abroad
may involve all six stages.
There appears to be huge scope of improvement in reducing the lead time during the
product development and pre-production process. Collaborative product development, i.e.
simultaneous development of raw material and accessories was practiced by some large
buying organisations, but is not a regular practice among small and medium manufacturers.
Manufacturing organisations migrated to new industrial economies primarily due to
cheaper labour wages (Dickerson 1995, Jones 2006a), and not because of their product
development skills (Jana 2003). Though CAD was used in pattern making, electronic fitting
(e-fit simulator, Browzwear) was not common among small and medium manufacturers
during the research tenure.
It was reiterated that getting fit sample approved right first time was not a positive strength
of a contract manufacturer. Possibly a retailer can strategically outsource the product
51
Product development from India has changed over time. Earlier, designers and buyers from
developed countries used to come with specific requirements and Indian manufacturers
only used to duplicate them; the order used to begin with fit sample. However, nowadays
buyers are looking for the manufacturers capability in terms of raw material options, style
silhouette options, uniqueness and innovation (Malik 2009). Due to this, the merchandisers
are now product-specific and not client or market-specific (Malik 2009). The Indian
designer now travels to Europe, attends forecasts and is expected to develop his own
collection fusion of Indian fabric and embellishment strength with European design
sensibilities. Although Indian product development teams are strong in fabric development,
sourcing, pricing, innovation and crisis management, they are very poor in colour
matching, knowledge of fit and pattern details and correct interpretation of approval
comments from the buyer resulting in inevitable iteration and stretched lead time (Malik
2009). With product development envisioned to be the real growth for the Indian apparel
industry (ApparelOnline 2007a), the key issues for India as a supplier is immediate
improvement in the areas of raw material and sample approvals. If Chinese USP is quality
and volume, then Indias strength is PD (Apparel Online 2007b).
52
Many authors (Himmelfarb, 1992; Nijssen et al. 1995; Zahra and Ellor, 1993) view
sequential processes as obsolete and see industrial product development shifting toward a
parallel or concurrent product development process model. Erhorn and Stark (1994) and
Barclay et al. (1995) emphasised and modelled an integrated approach, where product
development occurs simultaneously in multiple departments and product improvements are
accomplished without hindering the process.
Figure 2.12
Hart and Baker (1994) attempted to limit the functional divisions suggested by parallel
processes with a multiple convergent processing model. In their model, however, multiple
convergences occur during the development phases that follow concept generation,
development and screening, which is in contrast to Bruce and Biemanss (1995) multiple
convergent model diagramming the early stages of development. The use of information
technology and virtual prototyping on the World Wide Web can also improve the speed of
decision-making and facilitate collaboration among customers, suppliers, and the firm's
personnel (Giachetti 1999; Park and Baik 1999; Dahan and Srinivasan 2000). Pearson and
53
Knudsen (2003), (Gilmore and Pine (2000), Karlsson et al. (1998) all suggested involving
the customer and supplier, thus leveraging their expertise and improving effectiveness.
Figure 2.13
The style of over the wall product development does not typically afford communication
between functional areas, instead, it results in a process that is essentially sequentialwith
the product and information passing from one functional area to the next on its path to the
customer (Cooper, 1990; Gerwin, 1993). There is little or no feedback or discussion
between areas with respect to potential improvements in the product (e.g., a design
improvement) or in the process (a change in material that might make the product easier or
less expensive to produce). In this model, the manufacturers role in the process of
developing new products is often viewed as strategically neutral (Abernathy & Utterback,
1988), and the interaction between the design department and manufacturing in such
environments could be defined at best as sequential, if not nonexistent. Similarly,
purchasing managers often have little influence over the evaluation and selection of key
input suppliers within this process. The only benefit of sequential approach, however, is the
lack of ambiguity within functional tasks; when one functional area passes the project on,
54
the receiving group can be relatively assured that the responsibilities and tasks of the
previous (sequential) function are more or less complete.
Collaborative Product Development (CPD) involves collaboratively developing, building
and managing products throughout the entire lifecycle, no matter what tools are used, and
no matter where they are located geographically or within the supply chain (Collaborative
Product Commerce 1999). In the apparel manufacturing context, it is about sharing colour,
texture (Kapur 2003), costing (Knox 2009) and other details while developing a range.
During the product development process, the brand, retailer, apparel manufacturer, fabric
manufacturer, accessories manufacturer, sewing thread (Coats 1999) and colour service
providers, garment finishing chemical suppliers share information so that the necessary
development can take place much before the order actually placed with apparel
manufacturer.
For instance, Gap Inc. shares its seasonal forecast colours with Coats worldwide so that the
correct embroidery thread can be developed. All Gap vendors are then directed to source
their embroidery thread needs from local Coats suppliers (Coats 1999). Levis shares its
specifications with accessory manufacturer and supplier Universal Fasteners to develop
zipper and rivets, stud buttons collaboratively (AAMA 1995). Freshtex, the speciality
garment finisher shares forecasts and develops washes with leading jeans brands during the
concept stage (Freshtex 2005). Liz Claiborne and M&S collaborate with fabric
manufacturers to develop designs based on forecasts. New product development in apparel
industry requires cross functional, intra departmental teams that communicate vertically
and horizontally across the supply chain (Tyler 2008a)
The major benefits of CPD for apparel companies includes accelerating time-to-market,
which provides improved customer satisfaction, greater profit potential, and gains in
market share; improved management of frequent specification changes; yields higher
quality products and reduces costly design flaws; automatic tracking and notification of key
milestones and improved scheduling between multiple layers of suppliers; effective data
sharing anytime, anyplace keeps everyone on the same page, eliminating costly errors and
delays.
55
2009),
(Tyler
2008b)
manufacturability
(Venkatesan,1992;
Whitney,1988), cost (Taguchi & Nonaka,1986), (Tyler 2008b) and product superiority in
the case of incremental innovations and in terms of development (Valle and VazquezBustelo 2009). Closer relationship between buying and supplier in NPD taking advantage
of market opportunity was documented (Merrills, 1989; Raia, 1991; Whitney,1988).
Involvement of purchase and supplier early in the development process decreases time-tomarket from concept to production (Clark,1989; Smith and Reinertsen,1991) and is
smoother and less expensive (Gupta and Souder, 1998). There are two types of
development; incremental and radical. Concurrent engineering practices are appropriate for
incremental development using well defined technologies in meeting time to market, lesser
cost and market penetration objectives. However a serial approach to product development
is appropriate for NPD for developing radically different products using new unproven
technologies (Mcdermott and Handfield 2000). A concurrent product development model
suggested by Tyler (Figure 2.14) explains a five stage process where technologists have a
vital role to play.
56
2.4
Optimisation Techniques
Supply Chain Optimisation, Supply chain integration (Shah 2009), supply chain
restructuring (Shah 2009), network optimisation (Chopra and Meindl 2005b) are some of
the interchangeably used techniques to ensure a balanced and improved supply chain
performance. This includes optimal placement of inventory (Chopra and Meindl 2005b),
minimising operating costs (including manufacturing costs, transportation costs, and
distribution costs), delaying point of differentiation (Shah 2009, Chopra and Meindl
2005b), shifting the bulk of cost addition to as late as possible and improved customer
service (Shah 2009). The technique often involves the application of analytical models,
product redesign, process redesign, network design restructure and value offering to
customer (Shah 2009). The optimisation result includes flexible, short-cycle schedules
(quick response) supported with the minimum inventories (inventory management), just in
time delivery, consolidated complex traffic routing without increased costs (Poirier and
Reiter 1996). Optimisation also uses sophisticated information technology to operate in a
concerted fashion on a comprehensive business strategy, rather than local optimisation at
the expense of other members of the supply chain (Poirier and Reiter 1996).
2.4.1 Postponement
Postponement refers to a concept whereby activities in the supply chain are delayed until a
demand is realised (Bucklin, 1965; Van Hoek, 2001). Van Hoek (2001) defines
postponement as the delaying of supply chain activities until customer orders are received
with the intention of customising products as opposed to performing these activities in
anticipation of future orders. Researchers suggest that postponement has the potential to
improve
responsiveness
while
reducing
inventory,
transportation,
storage,
and
obsolescence costs (Yang et al. 2004). Postponement has a long history of practical
business application dating back to the 1920s (Council of Logistics Management 2001).
57
The concept of differentiation is important for the textile and apparel industry as it offers a
variety of end products to customers. In case of garment manufacturing, the fabric dyeing
and sewing represent two main points of differentiation. In dyeing, an irreversible change
takes place about colour and in sewing, irreversible change takes place about style. In the
apparel industry Benetton used postponement to improve its responsiveness to customer
demands. By postponing the dyeing of its garments, Benetton1 was better positioned to
respond to demands for popular coloured clothing and reduce excess inventory of lesspopular colours (Dapiran, 1992). Postponing the shipment of appliances to Sears2 until a
customer order is received allowed Whirlpool to realise a significant reduction in inventory
and transportation costs (Waller et al. 2000). Hewlett Packard postponed final assembly of
its DeskJet printers until the very late stages of the supply chain. This postponement of
final assembly, combined with the shift of assembly locations closer to customers, resulted
in a more cost-efficient production process while reducing transportation and logistics costs
(Feitzinger and Lee, 1997). For example, many organisations are now utilising
postponement principle to delay differentiation in the manufacturing process, hoping to
reduce inventory obsolescence and other logistics costs (Rabinovich and Evers, 2003).
Waller et al. (2000) expanded the concept of postponement to include upstream
postponement, production postponement and downstream postponement. Brown et al.
(2000) describes product postponement in which some of the functionalities of products are
specified in the field, even after delivery to the customer.
Established in 1965, the Benetton Group is present in 120 countries worldwide. Its core business is fashion
apparel: a group with a strong Italian character whose style, quality and passion are clearly seen in its
brands, the casual United Colors of Benetton, the glamour oriented Sisley, the leisurewear brand Playlife.
The Group produces over 150 million garments every year. Its network of around 6,000 contemporary stores
around the world, offers high quality customer services and generates a total turnover of over 2 billion euro.
Benetton is now controlled by Edizione Srl (a holding company wholly owned by the Benetton Family) with a
67% stake. It listed on the stock exchange in Milan in 1986. (http://www.benetton.com)
Sears Holdings Corporation, with approximately 3,900 full-line and specialty retail stores in the United
States and Canada, is USAs largest provider of home services and leading home appliance retailer as well
as a leader in tools, lawn and garden, home electronics and automotive repair and maintenance. It also has a
broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well
as the Apostrophe and Covington brands. Sears Holdings Corporation operates through its subsidiaries,
including Sears, Roebuck and Co. and Kmart Corporation. (http://www.searsholdings.com/)
58
Aviv and Federgruen (2001) expand the concept of design for postponement where
products and processes are designed/redesigned to facilitate postponement. Yang et al.
(2004) further extended and refined the concept of postponement to include product
development postponement, purchasing postponement, production postponement, and
logistics postponement. Production postponement and logistics postponement are similar to
previously discussed concepts of postponement. Purchasing postponement relates to
Bucklins (1965) concept of shifting risk by delaying the purchase of raw materials up to
the point of production. Using cases involving four different companies, Van Hoek et al.
(1999) found that both strategic and operating characteristics influence the feasibility of
postponement in restructuring European supply chains. Growth in postponement is partially
reflective of the increased demand for customised products. In order to enhance product
offerings, many organisations are altering their supply chains to accommodate mass
customisation processes (Su et al. 2005). The newly created supply chain structures often
involve time postponement or delaying product differentiation points until customer orders
have actually been received. As mentioned above, postponement often results from
organisations adopting a mass customisation strategy in order to enhance their ability to
meet customer demands. However, postponement and mass customisation are distinctly
different and the terms should not be used interchangeably. Some researchers believe that
postponement is mainly a pragmatic means to move towards mass customisation
(Feitzinger and Lee, 1997; Kotha, 1995; Lampel and Mintzberg, 1996). Digital supply
chain offers numerous opportunity of postponement in apparel product development.
Electronic fit simulators where virtual models are used to test fit samples actually postpone
physical pattern cutting and sample making (Fralix 2003), digital colour approvals through
colour management systems (eWarnas Online Colour eXchange basis of Leveraging
Colour Management within PLM 2006) are a postponement of colouring of material.
Yeung (Yeung Y, et al. 2007) concluded that when a supply chain has a balanced structure,
it should use speculation or production postponement. When the supply chain has an
unbalanced structure, it should use purchasing postponement or product development
postponement.
59
The Program (or Project) Evaluation and Review Technique, commonly abbreviated as
PERT, is a model for project management designed to analyze and represent the tasks
involved in completing a given project, especially the time needed to complete each task,
and identifying the minimum time needed to complete the total project. This model was
invented by Booz Allen Hamilton, Inc. under contract to the United States Department of
Defense's US Navy Special Projects Office in 1958 as part of the Polaris mobile
submarine-launched ballistic missile project. Figure 2.15 shows a simple PERT network
with 6 activities; A, B, ..to F.
60
Figure 2.15
PERT/CPM Network
Source: www.wikipedia.org
Activity duration for A and B are 3 and 4 months respectively. C is successor activity to B,
similarly A is predecessor to both D and E. The critical path is B-C or A-D-F , where both
path takes longest time of 7 months.
Proven operation research tools like PERT and CPM were used for scheduling
merchandising and production activities and lead-time measurement in the traditional
supply chain, popularly known as Time N Action calendar in the apparel industry (Jana
2003). It was found that apparel associates use a time-and-action calendar, also called a
work flow, to organise everyone involved to establish and adhere to deadlines (Regan
2007). Many apparel managers use project management tools, such as Gantt Chart, to
monitor time and manage employees who work on PD and production (Regan 2007). In a
contract manufacturing scenario, work was tracked through the order fulfilment process
(OFP) by monitoring specific order points decided by the critical path reporting agreement
(Rollins et al.2003). Critical path was reportedly used for conformance to pre-production
milestones by U.K. and U.S. buyers on manufacturers in Hong Kong (Bruce and Daly
2006, Popp 2000), Turkey (Popp 2000). The technique is also referred to as merchandising
calendar time scale (Pan and Holland 2006), or time and action (TNA) calendar in India
(Dutta 2004).
61
Not surprisingly, many software solutions catering to apparel pre-production planning were
also found using the critical path management logic. Task-tracking system (Critical Path
Management) in Momentis (Momentis 2008), allows companies to define key tasks, task
dependencies and milestones related to the pre-production and development of finished
goods. Customer specific critical path formats in Fast React Systems (Fast React 2007)
allows follow up on the events and monitoring of garment cutting activities (Styleman
2008). Purchase orders are mapped to assigned dates and critical path (Cantel 2008) to
track and activate alarms. Although the word critical path was found commonplace in
organisations, it was rarely used from the viewpoint of operation research logic. The
critical path was interpreted by practitioners from apparel industry from its literary
viewpoint rather from operation research viewpoint. The criticality/importance of the path
(or process) was judged either based on quality vulnerability or cost vulnerability or error
prone, etc.
Goldratt in his book Critical Chain (Goldratt 1997) exemplified and summarised human
nature of working in a project environment (Refer Appendix I). While the critical path
method was found to be more appropriate for machine driven activities (Goldratt 1997), the
critical chain was found appropriate for people oriented functions by incorporating both the
human side and algorithmic methodology side in a unified principle (Goldratt 1997).
Garment pre-production (also known as merchandising) activities are characterised by
mainly people oriented functions, where interdependent activities are synchronised between
succeeding and preceding activities to make the process network. Furthermore, some of the
critical chain characteristics have commonalties with garment pre-production activities like
backward scheduling, multitasking and resource dependencies. Thus critical chain
methodology was found to hold promising application in rationalising apparel
manufacturing cycle time.
62
Figure 2.16
Lean Manufacturing is a systematic approach to identifying and eliminating waste or nonvalue added activities in a process through continuous improvement with the goal of
creating maximum value. It is a manufacturing strategy trying to maintain minimum
inventory. Lean manufacturing strives to reduce waste in human effort, inventory and time
to market (Seth and Gupta, 2005). The first approach of Lean is to assist in the
identification and steady elimination of waste (muda). As waste is eliminated, quality
improves while production time and cost are reduced. Modular systems require a managed
flow of materials that resembles just-in-time (JIT) systems, reduces inventory (Bonacich et
al. 1994) and increases flexibility (Katla et al. 1998). Examples of other lean tools are
Value Stream Mapping, 5S, Kanban, and poka-yoke (error-proofing). Kanban means
visual signal in Japanese, control of inventory by means of kanban reverses the material
63
flow from push to pull system, thus enabling maintainenance of minimum possible
inventory. In Toyota approach to lean manufacturing, the focus is upon improving the
flow or smoothness of work (thereby steadily eliminating mura; unevenness) through
the system and not upon 'waste reduction' per se. Since lean thinking analyses business
processes systematically by identifying and removing wastes, it helps also to distinguish
between value added and non-value added processes (Harrison and van Hoek, 2005).
Inventory is like a security blanket, according to Joan S. Adams, MD and CEO of Pierian
Consulting, New York. Companies build up inventories because they dont know about
future needs and do not want to lose an order for lack of items. Inventory control also
depends on make-to-stock versus make-to-order control. In a make-to-stock system, every
stage blindly produces inventory up to a certain target level ahead of time, i.e. before any
demands have arrived at the system, so that when a demand arrives, there is a good chance
that it may be pulled from inventory. In a make-to-order system, no inventory is produced
ahead of time. Instead, production is initiated whenever an order arrives at the system.
Mentzer (2001) suggested four major approaches to inventory management; economic
order quantity (EOQ), material requirement planning (MRP), distribution requirement
planning (DRP) and just-in-time (JIT). The right approach will depend on nature of demand
(dependent or independent), type of system (push or pull) and level of solution (single
facility or system wide). For a single facility solution in a pull system while EOQ is an
appropriate approach involving independent demand items, JIT is most applicable for
dependent demand. Therefore, while JIT would be suitable controlling inventory in apparel
manufacturing, EOQ would fit for retail inventory management. Other requirements for
practicing JIT in manufacturing environment are scale of operation (Millstein 1999) and
geographical proximity (Sharma and Jana 2005). For a system wide solution in a push
environment while MRP is best applied involving dependent demand items, DRP is a
preferred approach for independent demand. According to G. Liberopoulos and Y. Dallery
(G. Liberopoulos and Y. Dallery 2003), material resource planning (MRP) is a
deterministic make-to-order system that copes with uncertainty, usually by initiating lead
times than by introducing an inventory target level in the form of safety stock. Managing
Inventory in the textile and clothing supply chain requires managing inventories at an
64
aggregate level and there are different types of inventory to be maintained for different
reasons. For example, a cycle stock inventory may be required for economies of scale while
anticipation inventory may be required to deal with seasonality in demand. An inventory
classification for the apparel industry is listed in the following table (table 2.4).
Table 2.4
Type
of Explanation
Inventory
Cycle
Stock Due to batches of production,
Inventory
created on account of:
1. economies of scale
2.
manufacturing
process
requirements , and
3. process flow management
Work-in-process
Inventory
Example
Fibre
production
is
a
continuous
manufacturing
process where batches are
introduced in order to achieve
economies of scale and/or
production efficiencies.
Decoupling Stock To snap continuity in the process Stock of grey fabric for dyeing
Inventory
and to achieve production process
economies
Safety
Inventory
2001, Chenet al. 2000 and Simchi-Levi et al. 2000). Local information implies that each
stage sees demand only in the form of orders that arrive from the stages it directly supplies
and has visibility of only its own inventory status, costs, and so on. Global information
implies that each stage has visibility of the demand and inventory status of all the
downstream stages in the system (Silveret al. 1998). One of the major advantages of global
information over local information is that using global information can help significantly
reduce the so-called bullwhip effect (Lee et al. 1997 and Chenet al. 2000), which can
result in important inventory cost savings.
Zara, for example, does not order as much in advance of season as conventional retailer
(six months pre-season stock is 15-25% against industry average of 45-60%). It operates
more flexibly with high proportion of in-season adjustment (40-50% in season stock
against industry average of 0-20%), very close to make to order model of inventory (Hines
and Bruce 2007).
The other two forms of inventory control are consignment and vendor managed inventory
(VMI). The APICS Dictionary (Williams 1999) defines consignment as The process of a
supplier placing goods at a customer location without receiving payment until after the
goods are used or sold. VMI goes one step further; under VMI, instead of the customer
monitoring its sales and inventory for the purpose of triggering replenishment orders, the
supplier assumes responsibility for these activities (Fox 1996). Vendor Managed Inventory
(VMI) is defined as a mean of optimising Supply Chain performance in which the
manufacturer is responsible for maintaining the suppliers inventory levels. The
manufacturer has access to the suppliers inventory data and is responsible for generating
66
purchase orders (Taras 2001). VMI is a streamlined approach to inventory and orderfulfilment. With it, the supplier, not the retailer, is responsible for managing and
replenishing inventory. An integral part of VMI is EDI, electronic transfer of data over a
network (Emigh 1999). In a Vendor Managed Inventory (VMI) model, the manufacturer
receives electronic data (usually EDI or via the internet) that tells him the
distributors/retailers sales and stock levels. The manufacturer can view every item that the
distributor carries as well as true point of sale data. The manufacturer is responsible for
creating and maintaining the inventory plan. Under VMI, the manufacturer generates the
order, not the distributor. Altering inventory management technique to postponement and
VMI enabled, inventory went down from 12 weeks to two weeks between IBM and its
distributors and eliminated a lot of errors, redundancies, and duplications (Latamore 1999).
This was an example of postponement and vendor managed inventory in supply chain.
While Zara uses geographically close inventory systems to rapidly transfer sales knowledge
to production facilities, JC Penney uses knowledge sharing vendor managed inventory
(VMI) system with geographically distant apparel manufacturer, TAL apparel in Taiwan
(Rothberg and Erickson 2004).
VMI concept is similar to the concept of purchasing postponement (Aviv and Federgruen
2001, and Bucklins 1965), where risk is minimised by delaying the purchase of raw
materials up to the point of production. VMI does not change the ownership of inventory.
It remains status quo. Payment is not made until the item is actually sold. Success in
inventory management is measured in improved service levels and in turns, the number of
times that the entire inventory is replenished annually. The higher the number of turns, the
less the time stock gathers dust.
The effect of type of merchandise on VMI is also important. While commodity products
hold better yield, fashion products are expected not to gain much out of the initiative. The
concern is clear from the following statement from the exclusive manufacturer of Ralph
Lauren and LittleMe children's wear (Frastaci 2001).
"We don't do any vendor managed inventory. All retailers that we deal with are major
department stores and specialty shops, dealing with a lot of fashion product that's not reorderable, so its a one-shot deal."
- Doug Schwab, Vice President, Technology, S. Schwab Co.
67
A number of researchers have addressed the notion of agile supply chains (Bruce et al.
2004), which like quick response, describe shorter, more flexible, demand driven supply
chains. Quick Response also means having the talent to reduce lead times and having a
68
flexible workforce (Jones 2003). Though used interchangeably, both being information
driven (Hines, 2004a), responsive and agile supply chains often differ in characteristics.
Responsive supply chains are characterised by high demand and low-supply uncertainty.
Agile supply chains are high on both supply and demand uncertainty (Lee, 2002). A variety
of technologies and management practices related with QR has been identified from
industry sources (Coopers and Lybrands Technologies 1991; Ernst and Whinney 1988;
Hunter 1990; KSA 1992). QR technology includes automated sewing operations, bar
coding, CAD, point of sale (POS) data, short cycle sewing and unit production system
(UPS), among others. QR management practices calls for electronic reorder, sharing
product info with trading partners, product planning with customer short cycle cut
planning, reduced inventory size, small lot orders, scanning fabric rolls, computerized
inventory system and shade sorting.
The fast fashion business model is based on either vertical integration (like Zara), or on a
shift from Far Eastern suppliers to those closer to the domestic market (like New Look) in
order to take advantage of quick response times. However, there are also other perspectives
of fast fashion such as Guercinis (2001) quick fashion, whereby retailers integrate with
suppliers to develop a range renewal service that is not associated with the traditional
advanced seasonal plans.
2.5
A supply chain can also be regarded as an added value chain. Operating processes that
transform some amount and mix of input resources, add appropriate value and deliver the
output result to the customer in apparel supply chain are physical transformation to a
physical tangible product (cutting/sewing, etc.), desired relocation of goods, services and/or
customers through transportation (fabric supply from fabric manufacturer to garment
manufacturer), distribution (re-sizing, re-packaging and even collecting disparate items
together into a coherent list), and information provision (organises and delivers data in a
easy to read report suitable for use by customers) (Macbeth and Fergusson 1994).
There may also be activities which add no value, e.g. goods in storage, but which may exist
for traditional reasons. In summary, there are three types of activities; first, category value-
69
added; second, category necessary but non-value added and third, category non-value
added activities (Monden 1993 cited in Hines and Rich 1997). Classification by Womack
and Jones (1996) renamed the second and third category as Type One muda and Type Two
muda respectively. Muda is the Japanese word for waste.
Value added activities involve the conversion or processing of raw materials or semifinished products through the use of manual labour. Examples include activities such as
sub-assembly of parts, forging raw materials, and painting bodywork (Monden, 1993 cited
in Hines and Rich 1997). Thus, value added activities are the machinery working times
required to produce a product. Necessary but non-value added activities (NNVA) may be
wasteful but are necessary under the current operating procedures. Examples include
walking long distances to pick up parts, unpacking deliveries, and transferring a tool from
one hand to another. In order to eliminate these types of operations, it would be necessary
to make major changes to the operating system such as creating a new layout or arranging
for suppliers to deliver unpacked goods. Such changes may not be possible immediately
(Monden, 1993 cited in Hines and Rich 1997) and often not possible to eliminate
completely. Non-value added activities or Type two muda stands for sheer waste and
involves unnecessary actions, which can be eliminated completely. Examples include
waiting time, stacking intermediate products, double handling, etc. (Monden, 1993 cited in
Hines and Rich 1997).
Value stream analysis of the apparel industry is not new. An example of process mapping
exercises in textile and apparel supply chain in US was conducted by KSA during 1986.
For a ladies night suit it was observed that total 66 weeks were required from fibre stage to
consumer. However out of the 66 weeks only 11 weeks were spent on actual production i.e.
spinning-weaving-wet processing-cutting-sewing-packaging-distribution; the rest of the
time was inventory delay (Bruce et al. 2004).
70
Table 2.5
Fibre
Fabric
Apparel
Inventory WIP
(in weeks)
Raw material
1.6
WIP
0.9
Finished fibre @ fibre
4.6
Fibre @ textile
1.0
Total
0.9
7.2
WIP greige
3.9
Greige goods @ greige
1.2
Greige goods@ finish
1.4
Finishing
1.2
Finished fabric @ textile
7.4
Fabric @ apparel
6.8
Total
16.8
5.1
WIP
5.0
Finished apparel @ apparel
12.0
Ship to retail
2.7
Apparel @ retail Distribution 6.3
centre
Apparel @ store
10.0
Total
31.0
5.0
TOTAL
55.0
11.0
Source: Lawson, King and Hunter, 1999
The break up of working time (termed WIP in table 2.5) and inventory time is shown in
table 2.5. Apparently, the analysis combines the necessary non-value added activities with
the value added category, thus the value added component comes out to be 17%
approximately.
Since inventory was identified as the prime reason behind an excessively long supply
chain, efforts were made to develop manufacturing systems with less inventory as a buffer.
With simultaneous market change from mass market to individualistic (Piore and Sabel,
1984), the quick response concept came into being; modular/team work and Toyota Sewing
System were introduced. In traditional progressive bundle unit system inventory (work in
process) was being maintained between every sewing operation in first in first out (FIFO)
logic. Throughput time for assembling a garment used to be calculated as process time plus
waiting time in between operations. The multiple days of inventory in factory sewing floors
is reduced to zero in the Toyota Sewing System (TSS), resulting in the components being
moved between operations in a hands-off approach, leading to a quicker throughput time
71
for sewing. Modular manufacturing surely increased value addition percentage in sewing
but pre-production and product development activities still consumes a major chunk of non
value added time and will be studied later in this research.
A different representation of value added and non-value added activities was advocated by
Scott and Westbrook (Scott and Westbrook 1991 cited by Christopher 2007b), as seen in
Figure 2.18. In this diagram, horizontal lines represent the average process time while
vertical lines (drawn to the same scale) represent the waiting time in the queues for each
process. The representation shows two useful measures: the sum of the horizontal lines is
the process lead time and indicates responsiveness to a demand increase within same stock
constraints. Pipeline volume is determined by adding vertical and horizontal lines together
and indicates the time taken to respond to decreases in demand, given the same rate of
manufacturing throughput.
72
Figure 2.17
Customer
Delivery
Finished
stock
Value
Raw Material
Stock
Regional
Stock
In-transit
Production
Time
Source: Christopher 2006
73
Fabric Supplier
Finished
fabric
(5)
(20)
Underwear Manufacturer
Finished goods
Warehouse
Cut work
buffer
Sewing (18)
Component
Cutting (5)
Raw
material
store
(10)
Dyeing and
finishing (7)
Grey
Stock
Knitting (10)
Yarn Store
(5)
(15)
Spinning
(10)
Length 60 days
Spinning (15)
Yarn finished
goods store
(20)
Commodity
market
Figure 2.18
(2)
(15)
End User
Retailer
Distribution
Centre
Store
(10)
75
Figure 2.19
76
Value stream mapping is another tool gaining tremendous popularity for measuring and
expressing value added and non-value added activities in a supply chain. Value Stream
Mapping (VSM) is a Lean technique used to analyse the flow of materials and
information currently required to bring a product or service to a consumer. At Toyota,
where the technique originated, it is known as Material and Information Flow
Mapping (Rother and Shook 1998). Hines and Rich (1997) defined seven Value
Stream Mapping tools: Process Activity Mapping, Supply Chain Responsiveness
Matrix, Product Variety Funnel, Quality Filter Mapping, Forrester Effect Mapping,
Decision Point Analysis and Overall Structure Maps. It is the process activity mapping
that records the value added and non-value added activities in a supply chain.
However, there are several cases where commercial literature classifies all activities
into just two categories: value added and non-value added, wherein necessary non-value
added activities were clubbed with the value added category. This explains how 33
percent of the resources allocated to supply chain processes were identified as nonvalue adding (GEAC 1998). On a similar note, a case study on Indian apparel
manufacturer (Singh and Arora 1998) reveals that the percentage of non-value added
77
time is inordinately high in every department, with fabric manufacturing accounting for
89 percent, cutting 65 percent, sewing 82 percent and finishing 76 percent. Fabric
manufacturing takes nearly 80 percent of the total non-value added time in the supply
chain.
2.6.
"With information technology, the value of inventory is quickly being replaced by the
value of information,"
- Kevin Rollins, former President and CEO, Dell Computers
The role of information technology (IT) in managing supply chain is unpredictably
straightforward (Stein et al. 1998). At almost every step, technology had simplified
repetitive tasks and provided greater capacity to gather and analyse critical information
(Gattorna 1998e).
Use of web based forecasting services, illustration and storyboard software enables a
designer to create and share a collection digitally, faster than in the manual mode. The
design team can use fabric simulation software enable to create print/weave/knit fabric
digitally, make digital pattern using CAD, try numerous fabric rendering options
digitally, try the fit of the garment on digital dress forms, and numerous what-if
options thereby saving precious time and money in the PD cycle (Sareen 2006). Lately
videoconferencing is also used by companies to showcase new product collection to
buying and design team in UK backed up by actual fabric swatch couriered earlier
(Whitehead 2001).
78
Pattern making and marker making service is available in cloud-based computing mode
(Assyst 2008, Stitchworld 2005, Lectra 2008) to enable small organisations to apply the
IT advantage without huge capital investment. Tukaweb offered pattern making,
grading, marker making and even fit sample make services to North American and
European retailers through its business process outsourcing (BPO) model (Tukaweb
2002). Any design house in developed economies wanting to outsource its product
development activities can upload the style specification to the Tukaweb site. The
specification is downloaded at a BPO centre in India, China or Vietnam; a pattern is
made, virtually fit tested in 3D model, altered and uploaded back to the web. Apart from
taking advantage of cheap labour wages in new industrialised economies, this model
also uses the geographical time difference to its advantage. For example a measurement
specification submitted at end of the day by a design office at New York can be ready
next morning.
Digitally printing fabric directly from a computer is said to have reduced the sample
making time in actual fabric from 14 days to 4 hours (Gerber 2003). 3D motion
simulator for fit development and fit verification, with colour tension mapping, X-Ray
vision and many other features accurately simulate real fit sessions, with results that are
identical to actual fit sessions but without physical samples. Many retailers have
eliminated physical samples while approving digital samples to save time (Sareen
2008). Now, even the sample fit can be checked on an i-phone and fit comments sent
while travelling. Live video streaming and innovative still photography application over
the net (www.shapelyshadow.com) enables a manufacturer-buyer discussion to sort out
sample fitting remotely. These IT applications enabled PD activity to be more efficient,
accurate, first time right, cheaper, with crucial time saving being the prime
achievement.
Colour approval requires a physical swatch to travel back and forth between buyer and
manufacturer across continents, wasting valuable time. A computerised colour
management system can use a calibrated monitor to approve colour digitally without a
physical sample being couriered. Marks and Spencer reported that a computerised
colour management system enabled them and their suppliers to communicate colour
codes back and forth, reducing physical swatches by 20-25% (DNR 2000).
79
In pre-production, IT solutions are available for cut planning, labour costing, thread
costing, product data management and critical path management (Application of IT in
Apparel Manufacturing Process 2006). Cut planning software replaces the existing
method by a rational/scientific method using an optimal combination of marker and
layer (Jana 1999). Labour costing software enables planning of sewing time (and
calculating labour cost) scientifically, using pre-determined motion time systems.
Product data management and critical path management applications aim to organise
the interdependent maze of pre-production and production activities for every
style/order by maintaining a digital style file, automatic reminders, alerts and a to-do
list. However these IT solutions for pre-production activities are not commonly used by
small and medium organisations (Bheda & Shanbhag 2000). Although use of critical
path approach was reported in numerous publications (section 2.4.2), use of software in
critical path implementation was not found in the literature. At Oxford Industries, the
cost of labour for each garment was lowered by $0.15$0.20 apiece after
implementation of demand planning and production planning solutions from
Manugistics (Hirschkind 2001). Liz Link, Liz Claibornes custom developed ordertracking system, tied the systems together via client-server technology, linking
factories, freight consolidators and customers.
80
2.7
The global fashion and apparel industry is highly segmented; each segment presents
different challenges and requires a unique supply chain solution (Rushton and Walker
2007). At the lower end, retailers like Wal-Mart, Tesco and Carrefour buy huge
quantities of garments and sell predominantly own brands at low prices. The mid- range
features quality brands and retailers like Levi Strauss, Gap and Marks & Spencer. Hugo
Boss, Ralph Lauren, and Burberry come in the premium range. Retailers have become
increasingly powerful in recent years with Wal-Mart (US), Carrefour (France), Ahold
(Netherlands), Tesco (UK), Metro (Germany), Kroger (US) leading the way. The
combined turnover (including grocery) of these six retailers was US$ 600 billion
(Forbes 2006, quoted in Mintel 2007), more than the global apparel and textile trade.
Globally there is a continual trend to polarise between premium and value retailers
(Mintel 2008). Post 2005, quota free environment had created a level playing field in
global sourcing. However, the growing instances of free trade agreements started
influencing the global apparel supply chain as it favoured business between some
countries while acting as a non-tariff barrier for others.
While the industry is globalised and migratory in nature, it has a curious penchant for
simultaneous consolidation and vertical integration. While product differentiation is the
key, standardised work procedure is the constant drive. As the industry boasts of
responsiveness as a key descriptor of success, it wants to be simultaneously lean. The
apparel and textile industry can be best described as under:
More choice in existing product range, more choice through new products, more
customisation, faster satisfaction of need, freedom to change late in the order cycle,
increasing level of customer service (Macbeth and Fergusson 1994).
81
Global trade in textile and apparel in year 2006 was US$ 530 billion, out of which
clothing was US$ 311 billion (WTO 2007). Global apparel exports are largely
dominated by developing countries from Asia (52.3 percent), Europe (34.4 percent) and
North America (4.2 percent). China leads the country-wise exports at US$ 95.3 billion
followed by the EU at $ 83.4 billion. The EU leads imports at $ 141.2 billion followed
by the U.S. at $ 83 billion and Japan at $ 23.9 billion.
Some of the specific characteristics of the apparel supply chain are:
The apparel and textile industry is migratory in nature. While the design and
concept development takes place in a developed country, i.e. near the point of
consumption, the sourcing and manufacturing facility has continued to migrate
to developing countries in search of cheap labour (Gereffi, 1999, 2001; Dicken,
1998). This multi-country operation required efficient movement of goods and
information. Efficiency of a supply chain will depend on how much time it is
required to design, manufacture and supply the goods to store and at what cost.
The retailer and manufacturer generally belong to different countries. Both are
generally exposed to different cultural, socio-political and often technological
scenarios. On the one hand, there are large financially powerful retailers (of
$100 million or more average turnover) and on the other, there are small
fragmented manufacturers (of $10 million or less turnover); this results in an
adversarial relationship between manufacturers and retailers, which inhibits best
82
The apparel supply chain is driven globally by large self-centric retailers, whose
sourcing criteria differ from company to company. Different buyers seek
different products, have different clients, different approaches to business,
different core competencies and different levels of willingness to give up control
and allowing manufacturers to take responsibility of more functions in the value
chain (Lezama et al. 2005). There is very little sharing of knowledge across
organisations. Every organisation feels proud to be different from others.
Large self-centric retailers want to be uniquely different from each other in sourcing
criteria, but high SKU and frequent new product introduction pose operational
complexities. Thus one of the greatest challenges faced by the industry is how to
achieve excellence in product development.
The textile and apparel value chain is organised around five main parts: raw material
supply (including natural and synthetic fibres); textile manufacturing; production
networks made up of garment factories (including their domestic and overseas
subcontractors); export channels established by trade intermediaries; and marketing
networks at the retail level (Gereffi and Memedovic 2003). As explained in rationale
(chapter 1.6), the production networks will be investigated, thus emphasised in this
research.
The word recent in supply chain research is difficult to define due to the pace at which
research is taking place and theories are re-written. Different research initiatives in the
U.S. during the 1990s culminated in development of several standards like VICS
(Voluntary Inter-industry Commerce Standards) and metrics, which are repeatable and
lead companies to measurable benefits. One such tool developed by the DAMA
(Demand Activated Manufacturing Architecture) project is the Supply Chain
Simulation for mid- and high-level planners (Lovejoy and Curran 1999). Supply Chain
Simulation is a computer-based tool for supply and demand analysis that uses supply
chain information exchanged among strategic business partners in a customer-supplier
relationship. Traditional Industry Supply-Chain Simulation (TISS) and Collaborative
83
Industry Supply Chain Simulation (CISS) models were developed. These models
include additional logic to model both lead-time and inventory cost. The CISS and TISS
models are used to demonstrate the broader impact of building a supply chain based on
DAMA Architecture (Lovejoy and Curran 1999). Research in Europe focussed on
structural changes and technology intervention for lead-time compression in fabric
supply (Forza and Vinelli 2000), the role of intermediaries (Popp 2000) and different
sourcing methods.
Reversing the trends to outsourcing and offshore sourcing has become significant to the
survival of companies in developing economies from this sector. Design-led supply
chain risk management (McLaren et al. 2002) thus presents a case for recognising
design as more than a creative function but as a platform to manage risk in supply
chains.
Since the Harvard Centre for Textile and Apparel Research (HCTAR) study on lean
retailing (Abernathy et al. 1999a), the debate over lean and agile continues.
Contemporary researchers maintain that a commodity product supply chain should be
lean while fashion product supply chain can be agile (Fisher 1997, Abernathy et al.
1999a). A review of supply chain practices in the last two decades (Lam and Postle
2006) reiterated that companies used responsive supply chain strategy for innovative
products and efficiency supply chain strategy for functional products. These two supply
chain strategies are focused on the downstream supply chain aiming at shortening the
time to research the market and also to reduce stock levels in the retailing industry.
However, recent researches suggest both are not mutually exclusive; instead, the best of
both should be extracted through the leagile concept (Towill and Christopher 2007).
Leagile is where upstream supply is relatively stable but downstream demand
conditions are variable, e.g. in fashion clothing.
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Table 2.6
Characteristics
Supply strategy
Manufacturing
operations
Outsourced to a number of
different supplying contractors
based on best prices (often
globally). Do not own their
supply chain but need to try
and
control
it
through
standardised systems, policies
and
procedures.
Larger
organisations are bound to
exert pressure.
Lead Times
Fast
fashion
retailing
business model
Responsive
to
customer
demand. Small-and medium
sized volumes in response to
customer identified by store
data
Backward vertical integration
enables organisations like Zara
to manage closely the different
supply chain operations from
design to store. Own much of
their supply chain. What they
do not own is closely
controlled and relatively local
in Spain, Portugal and
Morocco with short lead
times.
Short lead times: 8-10 days on
some lines, most within 15
days including store shipment.
85
shipping times
Forecast well in advance of the Forecast much closer to season
selling season.
and heavily influenced by real
time demand data transmitted
from stores.
Replenishment
Inventory
levels
trigger No replenishment when its
automatic
replenishment gone its gone; move onto the
orders from suppliers at pre- next hot fashion.
agreed contract prices
Fabrics
(textile Various fabrics produced to Mainly
standard
greige
chain)
specification by Textile Mills, fabrics, piece-dyed to seasonal
12-16 weeks lead times, colours in demand.
production has to be booked
well in advance.
Source: (Hines and Bruce 2007)
Demand based on
Turning away from operational systems, a research interestingly reveals that for fashion
supply chain organisation and management between the U.K. and China, attention
should be focussed on improvement of three common aspects that could inhibit
performance: deficiencies in design specification, language barriers, and cultural/human
barriers (Chen et al. 2007). Retailers ignoring ethical issues risk a backlash against the
true cost of clothing. Value-oriented companies do not want to make an issue of this,
but ethical issues are an important point of difference for which people are prepared to
pay a premium (Mintel 2008). Continuing the trend among manufacturing companies to
reduce supplier base (Macbeth and Fergusson 1994), retailers are reducing supply base
as it is easier to develop trust/relationship on a long term basis for investment in
systems and technologies to improve overall efficiency.
This is a clear departure from the previous understanding of SCM and its associated
theories (agile supply chains, JIT, QR etc) which have been largely supply driven
concepts. Although some may argue that QR is a market driven concept, the key
difference in fast fashion is that it is a concept derived as a direct consequence of
changing expectations and demand from consumers, compared with QR which was
developed as a result of supply needs in the face of low-cost competition. Fast fashion is
so much in demand that retailers are doing every bit to keep ahead of competition. To
compete in fast fashion, the Limited cut the length of supply chain by dropping the
distribution network and developed a relationship with Li & Fung, a supplier
conglomerate from HK (Li 2007) to adopt a build-to-order and replenish-to-sale
business model. Fast fashion actually is placing pressure on supply chains to increase
the number of suppliers (rather than rationalising the number of suppliers) used by
86
retailers. Consumer demand is for a larger variety of styles that are changing more
frequently (Barnes and Greenwood 2006).
Product development and quality control are being eliminated from the supply chain
process in an effort to be more responsive to consumer demand. . . . there isnt time
for product development in a six week cycle, or whatever it is for fast fashion. . . The
retailers and manufacturers both have to say this is fast fashion, what do we have to
compromise on or sacrifice to get the right product but get it to store fast? We
sometimes have huge quality issues with garments that have maybe skipped a test or fit
session to get into the shops quicker as the lead times we have been given are very
tight.
(Barnes and Greenwood 2006)
It could be concluded that consumer demand is such that they are willing to sacrifice
some elements of quality and design content and corporate social responsibility issues
(when factories are running late to deliver fast fashion on time) in favour of having a
particular style or look faster to consumer. (Barnes and Greenwood 2006).
Raman (1995) documented the supply chain for woven fabric apparel in India, which
shows how the different players from cotton firms to shipping agencies are linked in
the apparel supply chain. A basic apparel and textile supply chain structure for India by
Chandra (2006) from fibre to retail distribution channel given in Appendix III will
explain how the textile and apparel are interlinked. However, the structure lacks depth
in apparel and downstream portion. As the scope of the research is contract
manufacturing supply chain in India, primary focus will be on the apparel manufacturer
and its supplier and customer network. The scope of research is marked by the shaded
areas in the following figure. (Figure 2.20).
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Figure 2.20
Freight
Forwarders
Trims
Cash Flow
Trading Partners
Fibre
Yarn
Material flow
Fabric
Apparel
Textile Testing
Retail
Consumer
Information Flow
From the above figure it is clear that fibre and yarn in the upstream section and retail
and consumer in the downstream section are out of the scope of this research. Primarily,
there
are
apparel
manufacturer,
fabric
supplier/manufacturer, trim
supplier/
The term distribution channel is commonly used to indicate how the merchandise is
distributed to the end consumer by a retailer (chapter 2.1.3) after procurement from a
manufacturer. The channel through which merchandise is procured by a retailer from a
manufacturer can be called procurement channel. Figure 2.21 shows an example of
multiple procurement and distribution channels for exporting mens shirt for a Western
European buyer.
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Figure 2.21 Procurement and Distribution Channel for Men's Shirts for West
European Buyer
Manufacturer Exporter
ImporterWholesalers and
Buying Syndicates
Small Independent
Retailers
Domestic
Manufacturers
Commission Agents
Large Independent
Retailers
Multiple Retailers
(Department Stores)
Consumers
Figure 2.22 shows that between an apparel manufacturer and retailer, there are
intermediaries for procurement of buying agencies, liaison office, importer, central
buying office, etc. Information flows between apparel manufacturer and retailer via
these
intermediaries.
The
material
flow
takes
place
through
either
89
Figure 2.22
91
For procurement of fabric, there are intermediaries between the apparel manufacturer and
also the fabric manufacturer; however, there are cases where an apparel manufacturer
directly procures fabric from the manufacturer. Trims and accessories are either procured
directly, or through agents or trim consolidator in case of imported items. The information
often flows via fabric suppliers/agents; however, the material was delivered (material flow)
directly from the fabric manufacturer to the apparel manufacturer. Similarly, information
flows through a buying agent or central buying office, but shipment flows directly to
retailers warehouse.
Large manufacturers may have in-house embroidery and or garment processing units, but
in the case of small and medium exporters, these activities are often outsourced. The unique
strength of Indian merchandise is value addition through hand work, which is again
outsourced. There are third party service providers like freight forwarders, material and
garment quality inspection agencies and compliance agencies.
While strength of Indian manufacturers is product development (2.3.2) it was seen that preproduction activities are delayed beyond schedule, thus putting pressure on cut-sew-finish
activities (Angrish 2002, Bhat 2001). Even in case of delivery date extension (increased
lead time) the actual production time (cut-sew-finish activities) generally remains
unchanged (Angrish 2002, Naik 2000). While delivery date extension is not possible the
actual production time (cut-sew-finish activities) is often reduced to accommodate
stretched pre-production time resulting compromised process and product quality (Naik
2000, Banerjee 2000, Hinduja 2003, Bhat 2001).
2.8
Summary
Section 2.1 discusses how information and material flow influences supply chain
collaboration. Mason-Jones and Towill (1999c) concluded that moving the information
decoupling point as far upstream as possible, by ensuring access to undistorted market
order information to all members of a supply chain, has beneficial consequences for supply
chains as a whole.
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Section 2.2 discusses the evolution from vertical integration to partnership, their
comparative advantages and disadvantages in the context of supply chain collaboration
among trading partners and lead time compression. Advantages of better control and faster
communication from vertical integration can be explored for vertically integrated
organisations, whereas literature does not report any tangible link towards lead time
compression. Literature reports a rising trend of geographically dispersed vertically
integrated operations that tend to benefit from global core competencies while
simultaneously enjoying the benefit of vertical integration.
Section 2.3 discusses product development in global and Indian apparel industry context.
PD in apparel means more of more of market research and marketing analysis and less of
idea generation, product design, and detail engineering (Trot 1998). The Indian industry
requires improving its product development efficiency, especially the pre-production
approval processes, literature on concurrence and/or collaboration has established its
proven record to improve product development efficiency through reduced cost and faster
time to market, among various other benefits. This paved the way for exploring
collaborative and/or concurrent product development in the Indian apparel manufacturing
scenario.
In the retail industry, postponement of product development process offers the possibility
of customers to collaborate in the product development process. However, as the scope of
this research is focussed towards garment manufacturers, the postponement strategy in
product development could not be explored.
Section 2.4 discusses several supply chain optimisations techniques and analyses the
possibility of exploring them as a time compression tool. Postponement strategy was found
to be useful for shifting the point of differentiation as late as possible and thus altering the
value addition curve in such a way that the bulk of the cost is added as late as possible.
Although postponement of the PD process can lead to a mass customization scenario,
where customers are collaboratively developing the product, there is no scope for lead time
reduction.
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The critical path method was reportedly used for conformance to pre-production milestones
by U.K. and U.S. buyers on manufacturers in Hong Kong, Turkey and India. While critical
path was a commonly used application it was rarely used from the standpoint of operation
research logic. It is probable that oversimplification of the critical path method by using
start-lag time and pushing all activities into the critical path has taken scientific logic away
from it. Even though the critical chain was found to be more aligned towards application in
human controlled projects, (like garment manufacturing supply chain), and effectively used
for time compression in project management, no literary reference was found about its
application in garment industry. This makes a strong case for exploring critical path and
critical chain in apparel manufacturing.
Lean philosophy focusses on waste minimisation and is centered around creating more
value with less work. While its value stream mapping tool may be a useful technique to
identify and measure value added and non-value added activities in the manufacturing
cycle, other techniques like Five S, Kanban (pull systems), and poka-yoke (error-proofing)
do not offer substantial scope in lead time reduction of the manufacturing supply chain.
Several inventory management techniques in the apparel industry were discussed. Vendor
managed inventory and consignment was a common practice between retailer and
manufacturer, While both JIT and consignment try to minimise inventory level, in the
former approach both possession and ownership of physical inventory remains with the
supplier (and delivered to manufacturer just when needed), whereas in the latter approach,
possession of physical inventory is with the manufacturer but ownership remains with the
supplier (and billed just when consumed). To practice JIT, manufacturers scale of
operation was important to leverage relations with the supplier and geographical proximity
was found important, whereas for consignment, it is of less significance. While JIT is more
accepted practice in manufacturing environment, literature on consignment between the
apparel manufacturer and their suppliers is rare. Although inventory management
techniques are found to be effective in making the supply chain lean, they have no role in
lead time compression.
Within the fashion industry, quick response is centered around the notion of minimal preseason ordering, taking advantage of improved speed and flexibility in the supply chain by
94
placing more frequent, in-season, small orders. While QR was primarily initiated to supply
small volume, high fashion orders with minimum inventory, this was also an effort to retain
the manufacturing industry in developed countries. Unlike many neighboring countries, the
Indian apparel manufacturing industry offers higher PD potential (ApparelOnline 2007a)
and is increasingly asked for by customers for responsive and smaller batch production
(ApparelOnline 2007b, Jones 1999). Indian manufacturers require to develop quick PD
capability, achieve higher sample conversion rate, reduce iteration in approval and produce
with lower throughput time. While the make through system of production in NCR (Bheda
& Shanbhag 2000) can make the garment in least throughput time, PD and pre-production
activities are slow and require reduction of lead time. Thus identification of delaycontributing activities in manufacturing cycle, measuring durations of those activities,
locating reasons behind delay and suggesting means of reducing it justifies the third
objective (section 1.5).
The lead time reduction technique discussed can be further classified into four different
categories based on the engineering procedure being adopted: elimination, compression,
integration and concurrence (Towill 1996). The elimination, integration and concurrence
technique often requires agreement from other supply chain echelons to implement. As the
scope of the research (section 1.5) was to develop a generic solution which can be applied
across industry, it was decided to choose the compression technique for longitudinal
research. Critical path and critical chain were also found to be a compression technique to
lead time reduction (Towill 1996), thereby making it an ideal option to choose for
longitudinal study.
Section 2.5 discusses different value analysis techniques and appropriateness of using the
same for measuring value added and non value added tasks in manufacturing cycle. Value
stream mapping was selected for longitudinal study.
more accurate data capture and electronic data interchange (Towill 1996) help supply chain
optimisation by time compression through re-engineering interfaces between successive
processes or through removing time within a process.
Section 2.7 discusses the challenges of Indian supply chain in the background of global
parameters. On the one hand, large self-centric dominant retailers (assumed leadership
position) wanted to be uniquely different from each other in sourcing criteria, while on the
other, increasing SKU and frequent new product introduction pose operational complexity.
Indian small and medium companies with decentralised manufacturing set up and
traditionally weak in sample development faces the greatest challenges is achieving
excellence in product development and order execution.
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Chapter Three
3.0
In this chapter, various research methods have been presented to demonstrate skills in
selecting appropriate methodologies to achieve the outcomes stipulated in the objectives.
Discussion on each objective (section 1.5) is taken up individually and structured in three
steps:
Review of investigative tools and techniques required to select the right options for
acquiring information from those sources.
The research tools and techniques are critically evaluated in terms of philosophy,
approaches, strategies, time horizons and data collection methods (Saunders et al. 2007a)
and the rationale for selection decisions is given separately for each objective. Selection of
sample population and investigative tolls is discussed commonly for all objectives.
Research design depends on the topic and scope of the research, the population and the
researcher himself (Saunders et al. 2007a). The broader topic in this case is the apparel
manufacturing supply chain, the scope is the production lead time for contract apparel
manufacturing supply chain, the population comprises apparel manufacturing organisations
in NCR, India and the researcher himself is an academic scholar operating in this
environment.
3.1
To achieve the first objective (To develop a full understanding of the Indian apparel
export manufacturing industry and its supply chain network), it is necessary to collect
information about perception/understanding of SCM among small and medium export
manufacturing enterprises, their business infrastructure and the current manufacturing
practices in terms of sourcing, product development, planning, and execution. The sources
for this information are likely to be the senior operation/production manager, the
merchandising manager, the purchase manager and the quality assurance manager. While
97
some information has to be extracted from several documents of the organisation (the
attributes), the rest are personal viewpoints and thus opinion-based.
Since the survey was neither to prove any scientific principles nor establish any theory with
data, the inductive approach was thought most suitable as it would give an insight of the
human aspects and also a closer understanding of the research context through collection of
qualitative data. Even though a survey strategy is usually associated with a deductive
approach (Saunders et al. 2007a), this survey was used to cover a reasonably large and
representative section of the industry.
Investigative tools and techniques available to collect information are secondary data and
observation, semi structured and in-depth interviews, or questionnaires. As the type of
information to be collected tends toward characteristics of the organisation, processes and
From the literature survey, it was found that the sample population of SMEs are mostly in
NCR (section 2.7), with a hierarchical organisation structure (section 2.7), and from the
point of view of the research question, it was clear that the nature of research was
descriptive. Semi-structured and in-depth interviews are more appropriate for explanatory
and exploratory research respectively (Saunders et al. 2007b), therefore the questionnaire
method was selected as most appropriate for the survey. As long questionnaires are best
practised as structured interviews (Oppenheim 2000), it was planned to administer the
questionnaire as a structured interview, where the questionnaire was carried by hand to the
sample organisation by the research assistant and explained to the person concerned to
ensure that the right person had responded. In most cases, the questionnaire was filled up in
the presence of the interviewer; however, a few were allowed to be filled up by
organisation in the absence of interviewer and sent back to him later. The structured
interview, in its true sense, was not followed as it would have required personal visits by
98
the researcher to all sample organisations. Multiple visits to single organisation were
envisaged, as the sources information were multiple and it was unlikely that all persons
would be ready with all information during a single visit. From the three types of data
variables in any questionnaire, namely opinion, behaviour and attribute (Dillman 2000), the
questionnaire was designed to collect mainly opinion and attribute-related information.
The sample population should be typical small and medium size companies, i.e., with
turnovers between GBP one to ten million (section 2.7); having their own manufacturing
facility as well as outsourced capacity (section 2.7); and carrying out business with both
EU and US customers. The sample of representative companies was selected for data
collation by purposive or judgmental sampling method. Having established that SMEs were
mostly in the NCR (section 2.7), working with mainly European and US customers either
directly, and/or through buying offices / importers (section 2.7), it was decided to conduct
the survey on SMEs of the NCR.
3.2
To achieve the second objective (To analyse the variability of processes within the
network and develop best practice methods), it was felt necessary to study all possible
variations of the product development process that exist in the Indian contract
manufacturing scenario (section 2.3.2). It was clear from the literature that the variability in
PD processes in apparel manufacturing depended on the country being exported to (section
2.2.4), retail distribution channels (section 2.2.4), merchandise type (section 2.3.1) and raw
material used (section 2.3.2). The information required is the step by step process flow
diagram of product development that does not exists in any kind of written records, but as
knowledge and experience with executives at manufacturing and buying organisations. The
data can be collected through cross sectional survey of the executives or longitudinal
observation. Since longitudinal observation would take much longer, the cross sectional
survey was thought about.
As data collection would involve clarifying the how and why of the process, the
interviewee should be an experienced senior level executive and the sample population
should encompass all possible variables. A Focus group is a specific purpose group
interview with a higher level of interviewer-led structure and intervention (Saunders et al.
99
2007c). The investigation in this case was about the product development process through
interviewing a number of experts. The strategy to be adopted was survey, as the
investigation in this case was about particular contemporary phenomena (the product
development processes), to be investigated using multiple sources of evidence, i.e. the
experts (Robson 2002a). In order to get representatives from different geographical
locations and for a variety of merchandise, focus group discussions involving a cross
section of experts were thought of.
The focus of data collection was to understand what was happening in each critical case so
that logical generalisations were possible (Saunders et al. 2007f). This would fulfil all
sampling requirements while keeping the sample size to the minimum. Since the select
group has to be important to make a point (Saunders et al. 2007f), the critical case
judgemental (purposive) sampling was chosen.
3.2.1
To rationalise the number of sample approvals, it was necessary to define the sample
approval steps (what?), the need to identify different sample approval processes that
currently takes place (how and when?) and the relevance/necessity of each process (why?).
Such information would be available with industry executives with reasonable experience
who worked with multiple-product type of organisations (preferably), dealt with customers
from different geographical locations and different retail distribution channels. The sample
population in this case comprised executives from various organisations fulfilling the
criteria above. A Focus group discussion was thought to be most appropriate method;
however, it was administered in a slightly improvised manner. Although the parameters of
selection of the organisation remained more or less similar to the earlier objective, a few
new samples (both organisation and executive) were selected for two purposes:
1. To get a non-biased, non-institutionalised outsiders point of view (not linked with
the earlier objective of rationalising the PD process).
2. To extract opinions of executives who were more hands on to get an operational
rather than strategic point of view.
100
It was then realised that it was not possible to organise a Focus group survey related to
geographical locations of the samples selected. Moreover, the samples might have required
consulting with other people in the organisation while finding an answer for the rationale
behind the different sample approval processes. Accordingly, the Focus group survey was
conducted among a cross section of industry through an open-ended questionnaire followed
by a meeting tte--tte wherever possible, to understand the relevance of sample approvals
in the PD process. Open-ended questions (Dillman 2000) allow respondents to give
answers in their own way (Fink, 1995). Easterby-Smith et al. (2002) also pointed out that
the use of open questions helped in avoiding bias. This mixed mode improvised research
methodology was selected to realise the best possible outcome. Here data is first collected
and a theory is developed as a result of data analysis and interpretation. The research
philosophy used is Interpretive and approach followed Inductive.
3.3
To achieve the third objective (To evaluate and measure delay-contributing activities in
manufacturing cycles, analyse the reasons behind such delay and suggest means of
reducing it), information was required about each and every activity in the manufacturing
cycle:
1. Clear identification was needed of pre-production and production activities in the
manufacturing cycle.
2. The duration of each activity was to be measured.
3. Activities causing inordinate delay were to be identified.
The possible sources of information are departmental record books (issue and receipt), style
registers, fax records, e-mail records, courier records, goods received notes in the
warehouse as well as executives working in design, sampling, merchandising, purchase,
planning, production and quality areas. As the researcher needed to observe, search records
and collect information by asking executives questions, it was felt that a case study would
be the most appropriate technique for data collection in the pilot stage. As data required
here was neither an organisations viewpoint nor documented as readily available
information (fact sheet) in the factory, the data collection methodology assumed
importance. It was decided to first carry out longitudinal pilot case studies with a few
101
organisations to understand how best data could be collected, followed by a cross sectional
survey through structured observation in a number of organisations.
Pilot case studies were conducted to define subject parameters (data to be collected), and
process parameters (mode of data collection). As maximum activities are expected to be
human-oriented tasks (rather than machine-oriented), analysing common human practices
(during the pilot case study) and devising a simple easy-to-use data collection format (for
the survey) are felt necessary.
Structured observation and interviews are conducted over a period of time to measure preproduction process time in a manufacturing cycle. After a pilot case study is over, the data
collection format is finalised. The structured observation is quantitative, yields highly
reliable results and can be delegated after suitable training (Saunders et al. 2007d). The task
of data collection for a survey through structured observation was delegated to executives
for outstation organisations. During the pilot study, data was collected by tracking how an
order was being progressed from the date the order was placed till the shipment was
trucked out of the factory.
During the pilot study, one order was selected from each organisation, PERT network
(section 2.4.2) was prepared for each order, actual start and end date for every task was
recorded to understand how PD, pre-production and production activities were executed in
an organisation. One particular order is considered as one sample and variations in activity
sequence and activity duration were due to merchandise type and/or retail distribution
channel (section 2.3.2). It was decided to collect information from multiple orders from
multiple factories to have representative data about the industry.
3.4
To achieve the fourth objective (To identify and evaluate value-added and non-valueadded activities in the manufacturing cycle) information is required about each and every
micro-activity of a manufacturing cycle. Firstly, there needs to be clear categorisation of
activities into value-added (VA), non-value-added (NVA) and necessary non-value- added
(NNVA) and secondly, the duration of each category is required to be measured accurately.
The data required here is neither the organisations viewpoint (which can be collected
102
The sample organisation should have small to medium turnover, truly representing the
typical Indian exporter (section 1.3) working with multiple procurement channels; small
and medium buying office, importers abroad as well as direct export, working with a mix
of out-of-workplace fabrication and in-house own manufacturing. As continuous
observation would require willing and co-operative upper management, typical case
purposive sampling was thought as most appropriate.
A simple easy-to-use data collection format was devised accordingly. The format with
explanation to specific organisation executives will enable simultaneous data collection for
multiple orders.
3.5
To achieve the fifth objective (To evaluate the applicability of different optimisation
techniques to reduce lead time in the manufacturing supply chain), three optimisation
techniques were studied, namely collaborative product development, critical path/critical
103
chain application and avoiding intermittent work interruption. Three separate subobjectives have been set for this objective.
3.5.1
To explore feasibility of lead time compression through collaborative and concurrent
product development (CPD).
The aim of data collection was to understand what was happening in each case so that a
logical generalisation could be made (Saunders et al. 2007f). To achieve the objective,
information is required about whether multiple organisations carry out activities as a team
where information is shared in such a manner that decision making is by consensus,
involving all perspectives in parallel, right from the beginning of the product life-cycle.
Information is likely to be available with executives of the apparel manufacturer, suppliers
of accessories and fabrics, value-addition service providers and the buying office (and/or
buying agents). The study is to explore co-operation and team values between the apparel
manufacturer, supplier and customer. The information required is all that actually happens,
the how and the why, and unlikely to be available in documented format or through a
questionnaire survey. It could be obtained through a Focus group interview with selected
experts. Wherever a Focus group was not possible due to non-availability of experts for
joint discussion, expert knowledge elicitation was used by talking to experts on the subject
separately.
Exploratory studies in a cross sectional time horizon are a valuable means of finding out
what is happening, to seek new insights (Robson 2002b). Its great advantage is that it is
flexible, allowing a researcher to change the direction of research as a result of new data
(Saunders et al. 2007a). It was decided to follow up the Focus group interview with
exploratory case studies using historical data in a cross sectional time horizon to study how
and why actually collaborative and concurrent product development was practised, if at all,
among specific organisations. The case study will help the researcher to decide the
direction of research and whether to go for longitudinal study in the area or not.
104
3.5.2
To study the applicability of critical path and critical chain to reduce the manufacturing
cycle time.
In the first stage of the study, information is required to be collected for a case (an order)
about activity duration, successor and predecessor relationship during set up mode and
actual completion date of each and every activity during the tracking mode. This
information is likely to be available with sampling co-ordinators, merchandisers, pattern
masters and other people in charge of pre-production activities in the organisation. The
study would involve preparation of the PERT/CPM network by the researcher using the
data collected during the set up mode, and briefing the executives involved in the order
about the critical path and critical chain concepts and how to follow up in the tracking
mode while the order is in progress. Data and time is to be recorded as and when activities
are completed over a period of time, therefore the time horizon of the study is longitudinal
and data collection method is structured observation. The research philosophy is positivism
as the emphasis is on objective measurement (Saunders et al. 2007a) and the approach is
deductive. Control was exercised through scientific principles like PERT and CPM.
The second stage of the study was to establish how multi-style critical chain helps
bottleneck management of manpower resources. Information sources and data collection
regarding activity duration, successor and predecessor relationship remains the same as
earlier, however making of the Gantt chart was achieved using software. Different reports
generated from the software about resource utilisation pattern were used as guidelines
during the tracking mode. The software format (input screen) was used for structured
observation and collection of data of multiple orders running at the same time in the
organisation.
Both stages of the study were to provide an illustrative profile using a representative case.
3.5.3
To measure the potential of time saving for skill based activities by avoiding intermittent
work interruption.
In this case, information is required to be collected for skill based activity/activities
regarding start time, interruption time, if any, and end time. All information to be collected
105
in real time about how the executive starts working on an activity and why he/she jumps to
another activity leaving the earlier one unfinished, when he/she resumes the earlier activity
and finishes it. All circumstantial evidence is also to be collected regarding such a practice.
The possible sources of information are executives primarily engaged in skillbased
activities. As such information is unlikely to be readily available in a documented format, it
is to be collected in person as and when it occurs. The structured observation was found to
be the most appropriate method of data collection. As the data to be collected from the
same activity and/or executive over a period of time, a longitudinal study was found to be
appropriate. This study is again to provide an illustrative profile using a representative case.
3.6
Selection of Population/Sample
Sample selection is primarily of two types: probability or representative sampling and nonprobability sampling (Saunders et al. 2007e). In this research, no statistical inferences were
planned from the sample so non-probability sampling was used. Non-probability sampling
can be of different types; quota, purposive or judgemental, snowball, self-selection and
convenience sampling method (Saunders et al. 2007f). The total number of large
organisations in India is around 100 while that of small and medium organisations is
around 2000 (ApparelOnline 2006). It was decided to conduct the survey in and around
NCR due to maximum concentration of small and medium organisations (Bheda &
Shanbhag 2000). Furthermore, organisations deal mainly with fashion merchandise (Trend
Fusion 2005). To develop an understanding of the Indian apparel export manufacturing
industry and its supply chain network, an SCM awareness survey was conducted with a
focus to identify a useful rule of thumb and accordingly a set of 10-30 sample size was
aimed for analysis (The Economist 1997).
The rest of the research can be categorised as exploratory case study. Focus group or
longitudinal research and purposive or judgemental sampling technique was used as the
objective was to select samples that best understood the requirement of this research, cooperated in the study and answered queries. Saunders et al. (2007f) suggest that purposive
sampling may be used following the grounded theory approach. The grounded theory
approach used in pre-production time analysis actually leads to heterogeneous purposive
106
sampling for the selection of organisations for subsequent longitudinal study. For
longitudinal studies, typical case purposive sampling is used to provide an illustrative
profile using a representative case. For multi-project critical chain implementation and
value-added and non-value-added time analysis, sample organisations were selected based
on logical generalisation parameters (Patton 2002). For example, if something happens
with the sample, it will happen with everyone; if the sample is facing a problem, then
everyone will have problems and if a sample cannot understand a process, it is likely that
no one will be able to understand the process.
3.7
Investigative Tools
Data collection and recording was planned using simple spreadsheet (MS-Excel). The
qualitative data (opinion-based) data was simply grouped or averaged to arrive at a
conclusion and quantitative data was analysed using statistical tools (MS-Excel) to
establish a relationship. MS-Excel was also used for drawing single order PERT/CPM
network using autoshapes and connectors. A specialised project management software
(extended trial version) was used for drawing multi-order critical path/critical chain
network and generating different resource utilisation guidelines for managing resource
bottlenecks during the longitudinal study.
3.8
Ethical Procedures
It was inevitable that much of the data collected would involve commercially confidential
information from case study companies, or personal views of senior executives. In order to
ensure open and honest disclosure, care has been taken to keep the people and
organisations involved anonymous, where appropriate.
During the initial survey, the names of the five buying offices sampled to provide lists of
their suppliers were kept anonymous, and only relevant characteristics such as sourcing
country was revealed. This was required to establish the wider context of business for the
supplier organization. The names of supplier organizations that responded to the final
questionnaire were also coded at the request of respondents for reasons of anonymity.
107
However the financial and operational indicators of the companies were presented in a
tabular form to help understand the organisations characteristics.
The third objective was to identify and measure durations of delay-contributing activities in
the manufacturing cycle, and this study was conducted in two parts. First, a case study was
done with three organisations, followed by the main survey of nine organisations. For each
case study, the organisations name was coded (with a fictitious name) at the request of
respective organisation. During the survey, the sample data was actually orders (not the
organisations), and order numbers were generally alpha-numeric coded. The organisations
insisted that as long as the customers name for those orders was not mentioned, the order
code numbers did not require anonymity. Eight organisations out of nine who participated
in the survey agreed to use their names; one organisation where data were collected by a
research assistant, was code-named for anonymity.
The two company case studies to evaluate and measure value added and non-value added
activities in the manufacturing cycle had no objection in allowing the use of their actual
organisation names.
The focus group that discussed various optimisation techniques for reducing product
development lead times consisted of experts from eight different organisations. The names
of the experts were not used in any case. Four organisations were given fictitious names,
while the others were happy to be named: Triburg Consultant, Coats India, Groz Beckert,
and Tukatech.
108
The longitudinal studies conducted to evaluate the applicability of critical path and critical
chain theory consisted of an anonymous pilot to Silvershine Apparels at their request, while
the main study organisation name was retained as Kirat.
3.9
Summary
The overall research philosophy, to a large extent, was interpretive and approach inductive.
Surveys were used as a strategy during the initial stage and case study in the later stages.
The first stage of research was to develop an understanding of the Indian apparel supply
chain through a survey, understanding of the product development process through a focus
group discussion and 'expert knowledge elicitation' to rationalise the number of sample
approvals. The second stage concentrated on cross sectional case study and survey to
identify and measure durations of delay-contributing activities in the manufacturing cycle
and value added and non-value added time in preproduction activities. Once the delay
contributing activities were identified, the third and final stage of research dealt with
different optimisation techniques to reduce lead time in the manufacturing supply chain.
Longitudinal case studies were conducted; first on collaborative product development,
followed by critical path and critical chain application and finally, to measure the potential
of time saving for skill-based activities by avoiding intermittent work interruption.
109
Chapter Four:
4.0
Pilot Studies
This Chapter will cover the pilot studies done through the survey and case study with three
objectives; first, to understand the characteristics of Indian apparel export manufacturing;
second, the variability of processes within the supply network and identify delaycontributing activities in the manufacturing cycle and to measure the duration of those
activities and third, to identify the reasons behind delays and suggest means to reduce them.
Each research objective is presented with its methodology, data collection and analysis in
respect of existing literature and contribution to knowledge.
4.1
There appears to be some confusion about what the supply chain across the industry is;
whether it is a process, a system or an activity (section 2.1.1). However, the deliverables of
Supply Chain Management unanimously talk about delivering the product at the right
time (section 2.1.1) and literature on apparel supply chain also dwells on product
development as an important component of supply chain management (section 2.7). As
supply chain research is at a nascent stage in the Indian apparel industry (section 2.7), it
was decided that the survey should collect information about perception/understanding of
SCM among small and medium SMEs, their business infrastructure and the current
manufacturing practices in terms of sourcing, product development, planning, and
execution. As SCM bears a different meaning and interpretation to different people (New,
1997; Lummus et al. 2001; Mentzer et al. 2001; Kauffman, 2002, Kathawala and Abdou
2003), it was also decided to include a questionnaire on the opinion about SCM awareness
in Indian industry.
4.1.1 Methodology
The methodology for data collection was survey through questionnaire (section 3.1), which
involves questionnaire design and sample selection. Ten organisations were selected as the
110
minimum (Fink 1995) opportunistically. A pilot questionnaire was done with a total of 39
questions to assess the design of the questionnaire. The pilot questionnaire was thus divided
into four sections, organisation classification; information about the manufacturing unit;
information about merchandise sourcing and information about organisational output.
These four sections posed six, seven, twenty and six questions respectively. After the pilot
data collected from ten sample companies was analysed, it was observed that separate
sections on merchandise sourcing and organisational output were not required and hence
both sections were combined into product development and pre-production planning.
Additional questions were included in all three sections to increase the total to 48 questions
and finalised for the study (appendix IV-A). During the pilot testing, it was also observed
that sometimes respondents scribbled illegibly, with the result that their selection of options
was not clear, making data interpretation incomplete and analysis difficult. Therefore, a
separate feedback form (appendix IV-B) was designed to enable clear and lucid data
collection.
Out of the 48 questions in the final questionnaire, there were 15 questions on opinion, only
three on behaviour and the remaining 30 questions were on attributes. The questions were
divided into three sections: The first section of organisation classification contained nine
questions; information about manufacturing unit another nine; and the last 30 on product
development and pre-production planning. Different parameters in the area of product
development, pre-production planning and manufacturing functions were recorded through
mainly a close-ended type of options. The option types of questions were meant for senior
operation executives to express organisational viewpoints, whereas the attribute type of
questions required referring to some records.
The target was to get data from at least ten different SMEs. There are approximately 1200
small and medium garment manufacturing enterprises in the NCR (ApparelOnline 2006).
Through personal contacts in buying offices (two European, two US and one Hong Kongbased) a list of SMEs that fulfilled the above criteria was prepared. From a list of 117
SMEs, 30 companies were selected at random for the survey. This approximated 10 percent
of the SMEs in the NCR (Subbu 2003). Out of the 30 companies selected and approached,
22 companies responded and 13 could be fully analysed. The rest were discarded due to
incomplete information. Data was collected by sending the questionnaire either by person,
111
by post, or by e-mail (only two cases). Companies were identified by codes to conceal
their identity. All companies were from the NCR, with annual turnover ranging from GBP
0.4 to 8.67 million, working with 15 customers on the average and having a mean unit
value realisation (UVR) of GBP 2.7.
Attribute-based data from all 13 fully analysed companies are presented in table 4.1 while
opinion-based data is summarised in charts.
accessory
of
Total no.
vendors
Percentage of inhouse
production
accounts
of
Total no.
(customer)
Value
Average
Unit
Realisation
Turnover in millions of
pieces
Turnover in millions of
pounds
Company Code
Table 4.1
B1
2001
0.4
0.17
2.42
50
80
10
N/A
75
B3
2001
2.67
2.67
17
20
75
20
25
50
B4
2001
2.13
2.13
90
10
95
B5
2000
1.6
1.72
0.93
15
20
80
12
20
100
B6
2001
8.67
2.89
18
15
80
10
10
90
B7
2001
3.33
1.5
2.22
20
15
82
17
22
60
B8
2000
8.67
2.6
3.33
20
N/A
100
20
15
85
B9
2001
0.53
0.18
2.96
40
60
30
75
B10
2001
0.53
0.18
2.96
40
60
30
75
B11
2001
4.4
0.85
5.18
33
35
60
20
46
70
B14
2001
2.48
1.06
2.34
26
N/A
N/A
B16
2001
2.63
0.87
3.03
19
N/A
100
10
16
100
B17
2001
3.29
1.58
2.08
10
100
N/A
N/A
N/A
112
Data regarding opinions of respondents was tabulated and summarised so that response to
the questionnaire which essentially dwelt with the potential of improvement in the supply
chain, importance of operational issues in planning, sample conversion rate, sample
approval time, cost of product development, troublesome pre-production activities, and
communication problems in sourcing accessories could be tabulated and opinions
expressed in horizontal bar charts ranked as per importance and/or instances.
113
While investigating which issues affected planning most, it was revealed that respondents
put style and fabric forecasts as the prime issues. In-house and contract capacity were
found to be less important as the majority of the respondents used contract manufacturers
which provided them flexible capacity.
Figure 4.2
Capacit y
Cont ract capacit y
Fabric forecast
St yle forcast
0
Ran k of Im portan ce
114
Figure 4.3
Quality / Workmanship
Price
Late Submission
Measurement / Fit
Raw Material
0
0.5
1.5
2.5
3.5
4.5
Rank of Importance
When asked what the most important operational issues regarding product development
process were, electronic communication with buyer and management of product
development critical path were cited as strong issues. However provision of rapid costing
with design changes was rated as the most important parameter.
Figure 4.4
Other s
P r oduction liais on
Management of cr itical path
Rapid Cos ting with des ign change
Communicate Des ign Electr onically with buyer
0
0.5
1.5
2.5
3.5
4.5
R a n k o f I mp o r t a n c e
115
While investigating time requirement at different stages of sample approval leading to the
start of bulk production, respondents felt that the fit to production sample stage took the
maximum time followed by start of bulk production and initial to fit sample.
respondents felt that concept to initial sample took the least amount of time.
Figure 4.5
8.4
8.6
8.8
9.2
9.4
9.6
9.8
10
10.2
10.4
10.6
Nu m be r of Days
116
Figure 4.6
Transportation
Communication
Labour
10
20
30
40
50
60
70
When asked about most troublesome activities in the pre-production process, respondents
put achieving washing standard as the most troublesome, followed by the approval of
embroidery and accessories. Care label approval came out as least problematic.
Figure 4.7
Accessories Approval
Testing
Washing
Embroidery
0
0.5
1.5
2.5
3.5
4.5
Rank of Importance
117
Figure 4.8
Ot her
Lack o f Vis ual
C o mmunicat io n
Delayed
C o mmunicat io n
C o mmunicat io n g ap
at M anufact urer
C o mmunicat io n g ap
at Sup p lier
0.00
1.00
2.00
3.00
4.00
R a nk o f Ins t a nc e s
Seasonality in Business
While enquired about which are the months the organizations work with up to 80% or
above capacity, around 80%-89% of respondents reported three months; Nov-Dec-Jan are
the busiest, while only 26% to 30% of respondents reported to be working with near full
capacity during June-July. This seasonality in business reflected Indias narrow range of
product offerings, polarized workload in business.
118
Figure 4.9
Seasonality in Business
Monthly Workload
% of Respondents
100
80
60
40
20
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Calendar Months
While attribute-based data was collected for 2001 in the maximum number of cases, the
turnover in millions of GBP varied from 0.4 to 8.67, a fact showing the highly defragmented nature of the industry (section 2.7). Even average unit value realisation is a
consistent 2.7 GBP. Some companies work with a high number (maximum of 33) of
customers to probably minimise the risk of putting all eggs in the same basket. This
resulted in variations in the working process, specially in pre-production processes (section
2.7), as different customers are likely to follow different processes (section 2.7), Even
though all of them produce the majority of the output in-house, it was seen that they
worked with fabricators (for flexible capacity), a reflection of the seasonal nature of the
business (section 2.7). Seasonality in business also another important factor to have flexible
capacity thereby compensating the loss during lean season.
Product development (concept to style) time was identified as the prime area to be
improved, followed by bulk fabric procurement and initial to production sample approval.
As bulk fabric procurement is not directly controlled by the apparel manufacturer, the other
two areas were identified as target areas for improvement. High emphasis on style and
fabric forecast and low emphasis on production capacity indicates the emphasis on value
added stylised garments rather than basic styles, where capacity is generally important. The
119
low ranking of capacity parameters is also indicative of the presence of highly flexible
(subcontractor-based) manufacturing infrastructure, which is also one of the characteristics
of NCR-based manufacturers (section 2.7).
The reason behind low sample conversion rate also reflects the cost-centric mentality of
the respondents. The respondents felt the two prime reasons behind poor conversion are
high price and incorrect raw material with incorrect measurement/fit and late submission
coming in third and fourth respectively.
The total time from concept to start of production is pegged at approximately 40 days, and
divided into 4 different stages: concept to initial, initial to fit, fit to size-set and size-set to
production. It is interesting to note that the later stages consume more time on an average
than initial stages. Although average time for each stage ranges between 9 to 11 days, the
variability among data is found to be very high; from a minimum of two days to a
120
maximum of 40 days. Again, this wide variation of data reflects non availability of
information, use of non-standard terminology and/or non-standard sampling procedures and
quite probably, iteration.
4.1.4 Conclusion
It is interesting to note that while the respondents express their concern about the
importance of time, they are equally concerned about controlling costs. Quite often, the
intangible cost of submitting wrong measurement and fit and delayed approval are masked
by the tangible cost of raw material and labour. The survey emphasised the communication
problem during sourcing of material, the inordinately lengthy product development period
and equally specially, the long sample approval procedure, all of which require immediate
redress.
Product development, sample approval during fit and size set and management of the
critical path are the most time consuming activities and need improvement. Subsequent
operational measures taken are all focussed around cost reduction; control and time or
customer service do not get enough importance. For example, cost of communication and
late submission of samples are given negligible importance in cost of product development
and sample approval respectively. Least importance is accorded to shipment time. This
also suggests that Indian apparel manufacturers are mainly involved from the postmerchandising stage onwards, where price is more important than time (section 2.7).
The unanimous view expressed by industry was an investigation of internal activities which
they could influence and control. The focus of any research should be on identifying
parameters that are controllable and techniques which are universally applicable.
Performance measures that rely on government policies or external infrastructure facilities,
over which the apparel manufacturer has no control, need not be core areas of any
investigation. Hence it was decided to investigate the product development and preproduction processes in greater depth. Non-availability of factual data was one of the
primary reasons for incomplete feedback from factories; this is suggestive of the lack of
documentation in industry.
121
4.2
As the outcome of the preceding survey suggests wider exploration of product development
and pre-production processes, and literature (section 2.3.2) also mentions the parameters of
variations in the process, it was decided to carry out a series of interviews and in-depth
Focus Group discussions. The common areas of development are fabrics (texture, design
and colour), patterns (silhouette and fit), and accessories and finishing or wash effects. Raw
material was sourced either directly or indirectly through sourcing agents.
4.2.1 Methodology
While the approach and philosophy to be adopted was inductive and interpretive
respectively, it was realised that experts from manufacturing organisations had very limited
exposure to the product development process of different retail distribution channels as all
manufacturing organisations (particularly small and medium enterprises) were unlikely to
make different types of merchandise using different types of fabric and supply to different
retail distribution channels, to different geographical locations, through different
intermediaries. Whereas buying agents are generally found to cater to buyers of different
retail distribution channels. Often small buying agents have a bias towards a particular
geographical location due to the expertise they develop (section 2.2.4), whereas large
buying agents are found to represent all variables described above. Therefore, it was
decided to interview senior executives from buying agencies that represents
buyers/brands/retailers of multiple distribution channels. A substantial volume of Indias
exports is to the EU and the U.S. (section 1.3), dictating the selection of the members of the
focus group. Keeping the above factors in mind a five member focus Group representing
four different organisations was identified through critical case purposive sampling.
The selection of experts was based on their educational background, previous work
experience and current job description. The companies where the experts are currently
working were selected based on the variety of retail distribution channel as well as the
122
customers of the different geographical locations they represent. The first expert is senior
merchandising manager at Gap Inc3. India liaison office, a US based retailer. The second
expert is the country manager of H&M4 India liaison office, a Swedish retailer. Gap and
H&M are considered competitors in similar product categories representing the U.S. and
the E.U. The third expert was a merchandiser with Triburg Consultants5, a buying house
representing major U.S. customers as well as a few customers from the E.U. The fourth
expert is a senior merchandiser from Li & Fung6 India office, the Hong Kong based buying
house. The fifth expert was selected for his previous work experience with Shahi Export
House as merchandise manager, handling several customers sourcing mainly through
importers. Shahi Export House is a manufacturing organisation7 having production
facilities in both north and south India, working with major U.S. and E.U. retailers, brands
and importers. All experts involved with the Focus Group discussion were professionally
educated and had 8-18 years of work experience. The type of interview was relatively
unstructured and free-flowing (Zikmund, 2000) while the purpose was thus specific,
focussed, and linked to the exploration, relevance and sequence of process steps for product
development. The Focus Group discussion was documented as a series of parallel and
sequential activities that happen as a precedence diagram. Every activity was discussed
regarding its necessity.
During the lengthy deliberations with the Focus Group, the objective was to find similarity
of processes while identifying the key differentiating steps. The difference lay in working
through an importer and store or for a mail order. It transpired that though there were many
similarities and common processes, the overall activity diagram could be classified into one
of three basic types of supplier/manufacturer network. The product development process
network through an importer has the maximum number of activities (refer figure 4.10). The
product development process network for a Mail Order Catalogue and Brand is given in
figures 4.11 and 4.12.
3
www.gapinc.com
www.hm.com
5
www.triburg.com
6
www.lifung.com
7
www.shahi.co.in
4
123
Figure 4.10
Material
inspiration in
colour,
silhouette &
texture
Design team
draws
inspiration from
shows/fairs
Develop or
source
accessories
Designer and
technical
team develop
sketch
Sketch sent to
exporter for
sample
development
Exporter
develops
pattern
Developed
acc sent to
importer for
approval
acc approved
by importer
Develop or
source base
raw
material
Developed
swatches
from exporter
arrive at
importer
Raw material
swatches
approved by
importer
Develop
finishes
Finished
effect sent to
importer for
approval
Finished
effect
approved by
importer
Importer
approves fit
samples for
final
collection
First set of
salesman
sample
requested
from exporter
(acc)
Exporter
develops
sample in
alternate fabric
for fit approval
Exporter
makes first
salesman
sample
Design team
presents
salesman
sample to
internal sales
team
Multiple
salesman
samples
sent by
exporter
Multiple (2-32
nos) salesman
samples
requested from
exporter
First
salesman
sample
approved
by design
team
First
salesman
sample
arrives at
importer
Screening of
sample by
sales team
Target
selling
price fixed
by sales
team
Order
booked by
sales team
Importer
places order
with exporter
based on presold quantity
124
4.11
Fabric trends,
inspiration in
colour,
silhouette &
texture
Designer and
technical
team develop
sketch
Develop or
source
accessories
Developed
acc sent to
cataloguer for
approval
acc approved
by catalogue
Design team
draws
inspiration
from
shows/fairs
Sketch sent to
exporter for
sample
development
Develop or
source base
raw
material
Developed
swatches
from exporter
arrive at
catalogue
Raw material
swatches
approved by
catalogue
Exporter
develops
pattern
Develop
finishes
Finished
effect sent to
catalogue for
approval
Finished
effect
approved by
catalogue
Exporter
develops
sample in
alternate
fabric for
fit approval
Catalogue
approves fit
samples for
final
collection
Photo
sample
requested
from
exporter
Exporter
makes photo
sample in
correct fabric,
accessories &
finish
Photo
sample
approved
by design
team
Photo sample
arrives at
catalogue
Merchandise
space allotted
and target
revenue fixed
Multiple
salesman
samples
sent by
exporter
Photo shoot
Target
selling
price fixed
by
catalogue
sales team
Quantity and
delivery
schedule
fixed by sales
team
Catalogue
places pilot
order with
exporter
125
4.12
Material
inspiration in
colour,
silhouette &
texture
Design team
draws
inspiration from
shows/fairs
Develop or
source
accessories
Developed
acc sent to
design team
for approval
acc approved
by design
team
Designer and
technical
team develop
sketch
Sketch sent to
exporter for
sample
development
Develop or
source base
raw
material
Developed
swatches
from exporter
arrive at
design team
Raw material
swatches
approved by
design team
Develop
finishes
Finished
effect sent to
design team
for approval
Finished
effect
approved by
design team
Exporter
develops
pattern
Exporter
develops
presentation
sample for
approval
Design team
presents
salesman
sample to
internal sales
team
Multiple
salesman
samples
sent by
exporter
Multiple (2-32
nos) salesman
samples
requested from
exporter
sample
approved
by design
team
Presentation
Screening of
sample by
sales team
Target
selling
price fixed
by sales
team
Order
booked by
sales team
Presentation
sample sent
to design
team
Brand places
order with
exporter
based on presold quantity
126
Similar to Rochford and Rudelius (1992), it was found that product development
process sequence for commodity garments are more or less a standardised combination
of sequential and parallel processes. There were 18 sequential steps in the longest path
for a store as well as importer, whereas mail order had 14 sequential steps. The fabric,
accessories and fit sample development/approval process happen in parallel while the
rest of the process is sequential. Rather than the sequential process models of Urban and
Hauser, (1980), Gruenwald (1992) and Himmelfarb (1992), or the multiple convergent
model of Bruce and Biemans (1995) where R&D and customer involvement is a part
thereof, the product development process in Indian garment industry involves design,
industrial engineering, marketing and production quite similar to the integrated process
models of Erhorn and Stark (1994).
It was observed in all three product development process flow chart that developed or
sourced fabric, accessories, pattern and finish effect were sent to buyers design team
for approval was followed by the activity where approval/disapproval/approval with
modification received from buyer. The actual process of approval/disapproval/approval
with modification at buyers end was not mapped in the process flow chart. If we
compare product development process flow charts with Plumlees (NICPPD) model
model it was quite clear that while stage four activities are missing in above flow charts.
This is quite interesting due to the fact that as the activities that are not being performed
at manufacturers end will not require any manpower resource however there will be
substantial time delay between the submission and approval received.
For the value added garments activity, steps in pre-production and production process
sequences are quite different than standard cuttingsewingfinishing. Block cut parts
are sent for embroidery/washing and/or printing and after embroidery/printing/washing,
the final cutting is done; Half-sewn garments are sent for embroidery and/or printing
and garments parts are assembled thereafter. Figure 4.4 shows one example of how
production processes are different from the standard cuttingsewingfinishing
operation. Often there is lot of hand work done in between the cuttingsewing
finishing processes requiring additional approval. There are additional steps for sample
approval related to value added work like embroidery/printing/washing appearance/
colour/texture and/or trimming placement. Depending on the style detail, both the
127
number of quality approval steps and their sequence was found to vary, and it was
found that often certain approval steps followed were redundant and important approval
steps missing. From Focus Group discussions it also emerged that different types of
terminology, numbers of samples and sequence of steps were being followed by
different buyers for the sample approval process. Hence it was decided to study the
relevance of sample approval steps in the product development process.
Figure 4.13
adda embroidery is a kind of hand embroidery where fabric is fixed in a wooden frame of
approximately 44 inches X 88 inches under tension and multiple workers can embroider
simultaneously using a kind of hand needle.
Any initiative and approach towards collaborative development with raw material
vendors is absent in a majority of cases, which emphasises the need for an exploratory
128
case study in the area of collaborative product development. The concept of salesman
sample is dispensed with by a handful of fashion retailers like H&M and C&A. The
crucial time saved is worth taking a risk while bringing a product quicker to the market,
especially for fashion items in relatively smaller quantity Country Manager, H&M
India. (Chawla 2000)
4.2.4
Conclusion
The Focus Group concluded that due to continuous change and unpredictable trends in
fashion garments, the product development process sequence may be the nonexhaustive type and continuously evolving. Thus it would be impractical to rationalise
or standardise the product development process. Instead, rationalisation of the number
of sample approvals may be a feasible step towards rationalisation of the process, thus
shortening the product development and pre-production lead time.
4.3
4.3.1
Methodology
The mode of investigation chosen was again a Focus Group survey (section 3.2.1)
where an open ended questionnaire was sent to select experts. The choice of Focus
Group members was based on judgemental critical case sampling as sample size should
have cumulative experiences of product development and sample approval method
encompassing different product types, different raw material types, different
geographical locations, different retail distribution channels. Sample size (number was
not important as long as all variables are covered) was decided as five. Members from
earlier groups (section 4.2.1) were not considered in order to get a non-institutionalized
and unbiased view. The Focus Group members included a senior merchandising
129
manager from Gap Inc8, India office, referred to hereafter as [A], a merchandise
manager from Li & Fung9 India office [B]; the country manager, H&M10, Bangladesh
office [C]; a senior merchandiser from TMS Indonesia11, a buying office from
Indonesia [D]; a senior merchandiser from Ambatur Clothing Company12, Chennai,
India, a manufacturer of woven garments [E],
www.gapinc.com
www.lifung.com
10
www.hm.com
11
www.tmsfashions.com
12
www.ambattur.com
13
www.texportsyndicate.com
9
130
Table 4.2
Parameters
Proto
sample
Fit
Size set Pre
Sample
production
Any
other?
4.3.2
Data Collection
Data was collected in tabular format from each Focus Group member; however, it is
presented here as a sample-wise summary.
Prototype Sample
Four out of six respondents [A] to [D] replied making 1 sample for buyer, [E] and [F]
reported 2 and 3 samples respectively, and all six reported one counter for the factory.
Five out of six reported using alternate fabric with similar construction whereas [E]
reported actual bulk fabric for the same. Regarding accessories/labels/tags/embroidery
used in the sample, four respondents reported using alternates; two reported use of
actual (except labels & tags). Regarding what was actually being checked in the sample,
respondents reported fit and look, commercial saleability, design and styling,
construction, measurements and in some cases fabric quality as important parameters.
Only two respondents reported that the actual sample is physically returned with
comments while the other four said that the sample is retained with buyers for records
and only comments were sent. The mode of intimating the sample feedback is e-mail
131
with scanned picture for all respondents, while only one respondent reported using fax
for pictures and sketches by courier. All respondents felt that the fit approval can
neither be done electronically (i.e. without sample being physically couriered) nor the
process can be eliminated; only [A] felt the proto approval could be clubbed with fit
approval.
Fit Sample
Four out of six respondents replied making 1 sample for buyer, [C] and [E] reported 2
and 4 samples respectively, and all six reported one counter for factory. [A] & [B]
reported that fit approval was often combined with size set using jumping size. Five out
of six reported using same construction fabric (colour could be different). [E] reported
that the actual bulk fabric was used. Regarding accessories/labels/tags/embroidery used
in the sample, two respondents reported using similar or actual while four reported no
use of accessories. When asked what was actually being checked in the sample,
respondents reported construction, measurements, fit, shape and technical specifications
(seams, stitches). Only two respondents stated that the actual sample is physically
returned with comments while the other four said that the sample is retained with buyers
for records and only comments were sent. The mode of intimating the sample feedback
is e-mail with scanned picture for all respondents, while only one respondent reported
using fax for pictures and sketches by courier. Regarding electronic fit approval, three
respondents felt that fit approval could be done without sample being physically
couriered by using either graded patterns or by tasking the staff, if they were technically
competent to undertake the job.
132
The mode of communication was the same as for size set, however one respondent
reported mandatory handwritten feedback. Regarding the relevance of the process, half
the respondent felt that the process could be eliminated, while the other half disagreed.
Pre-production sample:
The pre-production sample replies showed that there was no uniformity amongst
respondents: some asked for one piece in every colour, some in every size, some in any
two sizes, some in the same size at fit sample while one respondent called this a sealer
sample. Fabric, accessories and packing material to be used were the actual items. The
parameters checked were aesthetics, packing material and proximity to the bought
sample apart from details of accessories, specification and grading which was already
checked earlier. While everyone felt that this process could not be eliminated, two
respondents linked it with Fit sample performance; they felt that if the fit sample was
approved at the first attempt without any comment, the production sample could then be
skipped.
4.3.3
A discussion ensued on four aspects: basic processes and terminology, material and
make up, quality control and communication, and value and best practice. Relevance of
each step was discussed in the context of business. A serious complication realised
during this discussion was the diversity in terminology used by the group members. For
example, the typology of samples are multiple and confusing. While prototype sample,
fit sample, size set sample, pre-production sample are standard and commonly used
terms, others such as Presentation Sample, Pre-Proto Sample, Garment Process Test
Sample, AD (Advertise) sample, top of production sample, bulk production sample,
salesman sample, seal sample (gold, blue, red and green seal, etc.); terms like revised
sealer sample, wash sample, embroidery position approval sample, etc., are also used
frequently. It was found that the prototype sample is generally called for in a medium
size with a counter piece (counter sample is an exact duplicate of the sample made and
retained before sending any sample for approval, so that if a comment came by e-mail,
it would be possible to interpret it easily, looking at the physical sample). For mail order
business, instead of a prototype, a photo shoot sample is asked for. A salesman
sample may be required for packing approval.
133
No electronic modes of approval took place. Instead, physical samples are couriered
back and forth every time. Only in a few cases were graded patterns acceptable for size
set approval. Approval/disapproval comments were often received by mail with
accompanying pictures. Alternate fabrics and raw materials were being used even for
size set leading to confusion for the counters kept. Some felt that fit sample and size set
could often be combined for both the retail as well as catalogue businesses, while others
felt that size set and pre-production could be combined. If fit sample/ size set had
comments, then only some retailers called for a pre-production sample, otherwise this
was skipped. While pre-production sample is defined as representing bulk production
in all aspects, in some cases alternate accessories were allowed right up to the preproduction sample, defeating the purpose. Even though comments on sample were
being received by mail, the remedial alteration (as per comment) could start only on the
arrival of the sample by courier.
It is important to note that the fabric used for both proto and fit remain the same and
also that the same parameters are being checked repeatedly. A striking similarity was
observed here, in that those who retained the proto sample and sent only comments are
the one who retained the fit sample. No substantial difference between proto and fit
were found in terms of purpose. The group agreed that so many stages of sampling was
probably designed to take care of mistakes at any stage, however when all was well
with one stage, then all subsequent stages might not be necessary.
4.3.4
Conclusion
134
proximity to the first sample. The fact that the concept of salesman sample is dispensed
with by a handful of fashion retailers like H&M, C&A (section 4.2.3) reinforces the
perception of lack of a standardised best practice.
4.4 Summary
This chapter addresses two objectives: firstly, to develop an understanding of the Indian
apparel supply chain and secondly, to develop an understanding of the product
development process. It was established that due to continuous change and
unpredictable trends in fashion garments, the product development process sequence
may be non-exhaustive type and continuously evolving. Thus it would be impractical to
rationalise or standardise the same. Instead, rationalisation of the number of sample
approvals and restricting it to three may be a feasible step towards shortening the
product development and pre-production lead time.
135
Case Studies
5.1
The qualitative requirements laid down for selection of organisations for the pilot study
were that each organisation should have PD functions, pre-production activities
executed by merchandisers, a reasonable number of orders in hand (seasonal business
for number of organisations in NCR, section 2.7.2), and progressive mindset of the
management to share data. The sample organisations would thus be amenable to
purposive sampling, providing an illustration of what is typical of the industry.
Loyal Exports, Case-1, based in NCR with an approximate turnover of US$ six million,
primarily exports to the Japanese market. Loyal Exports specialises in woven tops made
out of yarn dyed fabrics. Delta Fashion, Case-2, an approximately US$ seven million
turnover organisation has its own in-house manufacturing and buying division. Due to
the buying arm, the organisation does a lot of PD. Silvershine Apparels, Case-3, is an
136
It was decided to use the standard formulae for measuring the duration of each activity
(section 3.3). For every activity three different duration times (optimistic time = o, most
likely time = m and pessimistic time = p) were calculated with assistance from
executives from the organisation. Then, expected time duration for each activity was
arrived at using the formula (o + 4m + p) / 6. PERT networks were drawn manually on
MS-word and critical paths calculated for all three orders. The case studies were
conducted concurrently over a period of one and a half months.
5.1.2
Data Collection
Activity data for each order listed all activities with activity no., activity duration and
predecessor and successor activities. Activity data for Loyal Exports order is listed in
table 5.1 and the PERT diagram shown in figure 5.2. A total of 64 activities were split
into two major stages: 30 in PD (activity nos. 1-30), 25 in pre-production and
manufacturing process (nos. 34 to 58). Three activities (nos. 31-33) fall in between, i.e.
sample dispatch,comments thereon and exhibition in buyers country, and six activities
(nos. 59 64) appear in the post-shipment phase. Total number of activities in the
critical path is 36 (shown in red colour), which provides the delivery lead-time of 189
days (from sample making to merchandise at store). It was decided to analyse activities
only up to shipment and ignore the six postshipment activities. Activity data for the
Silvershine order is shown in table 5.2 and figure 5.3 is its PERT diagram. There are 14
activities in the critical path, delivery lead time being 59 days. In case of Delta Fashions
(table 5.3 and figure 5.4), the activities are classified into internal, upstream and
137
downstream activities. Out of a total of 42 activities, 19 are internal, 9 are upstream and
15 are downstream activities. The critical path has 22 activities with a lead time of 90
days.
Apart from order and organization-specific data collection, there were some interesting
insights seen during the study of three organisations. It was found that the majority of
the organisations used MS-Excel to schedule activities against target date, which they
call TNA or critical path. Quite often, the buyer specifies target dates of key activities
and based on those target dates, the manufacturing organisations create their own TNA
calendar adding buffer days (to ensure that buyer target dates are not missed). It was
found that Delta Fashion and Silvershine Apparels each maintained two separate TNAs;
one with a few important activities suggested by the buyer, another one with a greater
number of in between activities (mainly in-house) and brought forward target dates
created by the manufacturer. For example, TNA calendar suggested by a buyer may
have target dates for only five main activities, i.e. approvals for fit sample, size set, lab
dip, bulk fabric, and production sample. A manufacturing organisation-created TNA
calendar may have target dates for a total of 1520 activities like pattern and grading
approval, dispatch dates for all approvals, loading for bulk dyeing, receipt of fabric and
accessories, etc.
Figure 5.1 shows a typical order follow-up sheet using MS-Excel for Delta Fashion.
Five activities, namely labdip, technical sample (fit sample), photo sample, lab test
report and production sample approvals are being monitored for all orders. For all five
activities, there are two columns, one for submission date of sample (sent) and the other
for approval date (approved). Apart from activities, other details of the orders are also
mentioned in the same excel sheet. For every activity, two columns were to be filled up;
actual date of activity starting and actual date of activity completion. Even then, some
data was found missing in the format.
138
Figure 5.1
139
Code No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Time in days
5.2
0.04
1.08
10
2
5.3
2.1
3
1.2
5.2
10
5.2
0.04
0.75
6.3
0.7
5.2
0.04
1.08
10
2
5.3
2.1
3
1.2
5.2
0
5.2
0
2.5
5.2
5.2
Description of Activities
Fabric specification from buyer + proforma order
Fabric specification conversion for fabric vendor
Fabric specification courier to fabric supplier
Yarn sourcing by fabric vendor
Yarn dyeing
Yarn warping & weaving
Dyeing
Printing
Sample fabric transported to manufacturer
Sample fabric despatched to buyer
Buyers response to sample fabric
Trim specification sent from buyer
Trim specification conversion for trim supplier
Trim specification sent to accessories vendor
Trims developed by vendor
Trims despatched by vendor to manufacturer
Trims sent by buyer to manufacturer
Conversion of buyer order for fabric vendor
Courier order to fabric vendor
Yarn sourcing
Yarn dyeing
Warping
Weaving
Dyeing/ Printing
Fabric for exhibition samples sent to buyer
Paper pattern received from buyer
Quantity idea given by the buyer
Sewing & packaging spec. received from buyer
Price negotiations
Exhibition sample made
Exhibition samples and seal sample sent
Comment received on seal sample
Table 5.1
Code No
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Description of Activities
Exhibition in buyers country
Purchase order with revised paper pattern received
Instruction to trim vendor to start bulk production
Trim production by vendor
Trim shipped to manufacturer
Instruction to fabric vendor to start bulk production
Bulk yarn sourcing
Bulk yarn dyeing
Warping
Machine setup
Weaving
Washing
Calendaring and packaging
Dyeing printing
Fabric shipped to processor
Fabric over dyeing
Production fabric sent to manufacturer
Sample made with production fabric
Sample sent to buyer
Buyers comments received
Cutting of fabric
Garment stitching
Garments finishing
Customs
Delivery to port
Delivery to buyer by sea
Customs clearance in importing country
Transport to warehouse
Rewashing process
Final Checking
Counting distribution and price tag attach
Delivery to each store
140
Time in days
10
5.2
0.5
7
0.5
1.08
15
10.5
5.3
3.6
11.3
5
5.3
3
1.2
1.2
1.2
2.7
5.2
10.5
1.7
9.3
2
20
0.5
34.3
2
1
2
2
3
3
12
13
14
27
15
26
29
28
17
10
11
16
18
19
20
30
25
24
23
22
21
Figure 5.2
31
32
33
56
35
43
36
37
44
57
55
54
53
46
45
58
49
48
59
50
51
52
47
34
38
39
40
41
42
141
60
61
62
63
64
6
7
9
10
11
12
13
14
15
16
17
18
19
20
21
22
11
10
12
15
16
17
14,19,20,21
Production
Trims approved
L/C open
Quota procurement
Order receipt
Display to buyer
Make samples as per buyer
specification (proto sample)
Range
Activity
Sampling
Silvershine Apparels
23
22
22
22
26
21
20
19
18
16
12
15
10
14
14, 17
6,7
5,8,11,13
Next
Activity
2
Previous
Activity
Table 5.2
11
Duration
in days
7
25, 18
18
24
23
Previous
Activity
22
27
26
24
25
23
Ship out
Packing
Final inspection
Activity
Mid inspection,
Silvershine Apparels
27
28
25
Next
Activity
24
142
Duration
in days
1
Proto sample
Display
to buyer
Range
Sampling
Figure: 5.3
Size set
making
L/C open
Quota
procurement
Receive desk
loom
Fit sample
submit
Photo
sample
submit
Measurement
spec. received
Fabric
order
placement
Order receipt
Get L/C,
Quota etc.
Size set
approval
receipt
Approval of
desk loom
Trims
approval
sought
Approval of
fit and photo
sample
Production
pattern make
Bulk fabric
approval
Trims
approved
Bulk fabric
ready
Ship out
Packing
Final
inspection
Mid
inspection
Production
143
3
4
6
7
9
10
11
12
13
14
15
16
17
18
19
20
21
10
11
12
13
14
15
16
17
18
19
20
Previous
Activity
Table 5.3
Customs clearance
Finishing
Production starts
Sent to mill
Order confirmed
Exhibition by buyer
Sent to buyer
Activity
Meeting sample made (Start)
22
21
20
19
18
17
16
15
14
13
12
11
10
7, 23,26,28
Next
Activity
2, 30
11
Duration
in Days
41
40
36,39
38
37
15
35
34
33
32,25,27, 29
31
30
28
26
25
24
Previous
Activity
21
42
41
40
39
38
37
36
35
34
33
32
31
30
29
28
27
26
24
25
23
22
Sent to buyer
Approval received
Sent to buyer
Activity
Delivery to port (End activity)
19
42
41
40
39
38
40
36
35
34
33
32
31
33
29
33
27
33
25
24
Next
Activity
10
Duration
in Days
144
Lab dip to
merchant
Sent to mill
Lab dip
to buyer
Patterns received
from buyer
Fabric swatch
received from buyer
Send to fabric
purchase
Bulk order
for trims
Specs/trims
detail received
Meeting sample
made (Start)
Manufacturing
sample made
Lab dip to
buying agency
Sent to
buyer
Buyer approval
received
Bulk fabric
ordered
Delivery to port
Customs
clearance
Finishing
Production starts
Bulk fabric
approved
Sent to
sampling dept.
Lab test
approved
Sent to buyer
for approval
Bulk fabric
sent to lab test
Initial yardage
received.
Fit approval
received
Bulk fabric
Received
Approval
received
Trims arrived
in bulk
Sent to
buyer
Fit sample
made
Order
confirmed
Quantity specified
by buyer
Exhibition by
buyer
Figure: 5.4
Garment test
approved
Buyer approval
received
Sent to buyer
Pre-production
sample made
Size set
approved
Size set to
buyer
Size set
made
145
64 activities were recorded for Loyal, 42 for Delta and only 27 for Silvershine. The
reason behind this could be multi-fold; the orders selected were fashion or basic
merchandise, value addition in the merchandise and/or the distribution channel being
used (to retail the merchandise). While Loyal Textiles received the pattern from the
buyer, Delta developed their own pattern. While Loyal textile was working on yarn
dyed fabric, Deltas order was solid colour and Silvershine worked on knits. Delta was
involved in design development, Loyal was not. It was also found that while micro
activities (of fabric development) were mapped in the Loyal order, only macro activities
were mapped in the Delta and Silvershine orders. This depended on the companies
internal practice and convenience. For the Loyal order, the critical path time was 189
days spanning 36 activities; in the case of Delta Fashion, critical path time was 90 days
with 22 activities and for Silvershine, only 14 activities were in the critical path of 59
days. In the case of Loyal Exports, it was found that the activities first diverged into
many concurrent activities and then converged as the in-house PD activities got over.
The activities again diverged into many concurrent activities as the pre-production
began and again converged at cutting activity.
It was interesting to note that in all three cases, sample approval activities were not
found in the critical path. Generally, bulk fabric development and sourcing activities
were found in the critical path. However, amongst the variability of process steps
between the three organisations, there were striking similarities in their PERT diagrams.
In all three cases, it was found that activities first diverged to parallel activities and
finally converged before production started. Fabric spreading and/or cutting could be
146
In the case of the Loyal order, only 14 days (4 activities) was production process out
of 189 days of manufacturing lead time. For Silvershine order production process was
for 15 days (5 activities) out of 59 days and for Delta, 13 days (4 activities) out of 90
days of the manufacturing cycle. It was clear that time duration and number of activities
in the pre-production stages were far more than in the production stages. Another
important phenomenon observed during the case study was iteration in certain activities.
While estimating duration of those activities, executives used to add extra time
(buffering for possible iteration), resulting in longer target lead time. It was found that
activities of upstream suppliers requiring approval by downstream customers generally
went for iteration. Though iterations were prevalent in sample and accessories
approvals, there was no record available which those activities were, the reason behind
iterations and number of times iteration took place. Feedback by executives during the
case studies suggested activities where approvals were needed were the primary reasons
for delay, however no documented records were available to prove or disprove the facts.
Iteration posed another possible phenomenon of dynamic shifting of the critical path. It
was found (from the case studies) that fabric development-sourcing-approval process
generally fell in the critical path and the other two concurrent process were sample
(fit/size set) development approval and accessories development-sourcing-approval. As
all approval process are prone to iteration, depending on duration and number of times
of iteration, any of the three concurrent processes could become the critical path.
However the sample (fit/size set) development-approval route had very little (between
8-10 percent of the critical path time) slack time (section 2.4.2), which meant any delay
in sample development-approval would convert the sample (fit/size set) developmentapproval path as critical path. To measure durations of delay contributing activities it
147
was important to record the activity durations separately for each iteration (if any)
during the subsequent survey.
Interestingly, the MS-Excel sheet (figure 5.1) was not used by Delta Fashion for any
calculation of duration nor for any automatic visual alarm. The sheet was used merely
as for record keeping and not for any analysis or decision making. Data maintained in
Silvershine Apparel was also in MS-Excel, but not as detailed as Delta. Once the
activity data and PERT networks prepared were shown to executives, they felt that the
process was quite time consuming and apparently had no practical value during the
actual progress of the order as the duration as well as precedence relationship between
activities kept changing, making the whole exercise futile.
Even though the organisations executives were aware of the term critical path
method, it was surprising that none knew the correct meaning (definition as per
operation research) of critical path. The interpretation of term critical by the
executives varied; while some felt critical meant possibility of non-conformance is
higher as per previous experience, others felt critical meant most time taking; some
even linked critical with cost involved with that activity. Everybody selected critical
activities hypothetically, based on intuition or previous experience or a buyers
milestones and no one actually made a PERT network of activities and then arrived at
the CPM.
5.1.4
Conclusion
The fact that the number of activities in pre-production was higher than in production
and time consumed in pre-production activities contributed more to the total
manufacturing lead time suggested further exploration for identifying scope for lead
time improvement. The above network analysis once again reflected the variability in
processes. It was felt necessary to capture data with uniform level of detail for multiple
orders across different organisations; thus, a structured method of data collection was
felt necessary. As it was unlikely that any organisation would be able to draw PERT
network diagram and map critical path themselves, a simpler method of capturing preproduction processes was required. However, it was clear from the case study that that
PD and pre-production processes in the manufacturing cycle resembled project
management. Multiple executives from different organisations worked in synchronicity
to deliver the product in the pre-defined time. PERT/CPM was thought to be the
148
appropriate project management tool for addressing the lead time (technically critical
path time) reduction. However as the activities in apparel manufacturing cycle were
primarily human-oriented functions (unlike machine-oriented tasks in other industries),
the critical chain could be a more appropriate (section 2.4.2) optimisation technique to
conduct a longitudinal study as the critical chain addressed both the human side and the
algorithmic methodology side of project management in a unified discipline.
5.2
As concluded in the earlier case study, there was a necessity to measure all activities
from order receipt to shipment ex- factory, their durations and any instances of
iterations. For the survey, data would be needed over a whole year to avoid any
distortion due to several peaks and troughs of activity. Furthermore, data from several
companies would make findings more generic, rather than inclined towards any
individual organisations practice. The steps involved were first development of a
standardised format for order progress tracking which could be used across
organisations, irrespective of the differences in merchandise type, distribution channel
and methodology of record keeping followed by different organisations.
5.2.1
As explained as necessity in section 3.3 and observed during pilot case study (section
5.1.4) it was established that a structured data collection format is necessary for
conducting the survey. Also as anticipated in section 3.3 and concluded in pilot case
study (section 5.1.4) it was also established that simpler yet flexible data collection
format to capture the variability of data which can be easily filled up.
As explained in section 3.3 that one particular order is considered as one sample and
information from multiple orders from multiple factories to be collected as
representative data about the industry, selection of orders and selection of organisations
should necessarily be heterogeneous. However as the data is considered confidential
amongst industry, sample selection method was purposive (judgemental), and order
selection method was random to ensure heterogeneity. The sample selection method
would ensure that key themes were being observed (Saunders et al. 2007, page 193).
Criteria of sample selection were coverage of north and south geographical location,
149
mix of woven and knit product range, coverage of European and American buyers,
procurement channels used and systems in place to ensure heterogeneity. Seven
manufacturing organisations namely Kirat, USI, VO Enterprises, GI, ACC, Auric and
Misami and two buying organisations namely Essel Inc. and H&M, India were selected.
The selection of organisations was based on willingness to share info by the
management and access to information. A brief of the organisations from where data
was collected is given in appendix VIII and a summary of the organisations is given
below:
150
No
$100
million
$
5
million
$
80
million
$
8
million
$
8
million
$100
million
$
8
million
Gokaldas
Images
Essel Inc
H&M, India
VO
Enterprises
Misami
No
MIS
No
Bangalore
No
NCR
Chennai
Chennai
NCR
NCR
Bangalore
NCR
No
No
NCR
Location
No
Yes
No
No
Yes
Yes
Yes
No
Separate
style-wise
file
maintained
No
and
EU
US
EU & US
EU & US
EU
EU
Asia
EU & US
EU
EU
Source of
business
Agents
and
and
Buying
channel
and
Buying
Importer
Agents
Liaison Office
Buying
Direct
Importer
Agents
Procurement
used
Ladies
fashion;
woven
hi-
Mens basic
Ladies
and
Kids
hifashion;
woven
and
knits
Ladies
and
Kids
hifashion;
woven
and
knits
Ladies
and
kids
hifashion, knits
Mens basic
Ladies
and
Kids
hifashion;
woven
Ladies
and
kids
hifashion, knits
Ladies basic
Product
range
Through
student
E-mail
Personally
Through
student
E-mail
Personally
Personally
Data
collection
process
100
72
11
14
14
17
No.
of
units of
data
collected
20
14
11
11
No.
of
units of
data
accepted
17
151
Product ranges indicated were company mentioned; this did not necessarily mean that data was collected for similar styles/similar fabrics.
Except H&M India Liaison office, all other organisations were owner driven.
Auric
ACC
No
$
2.5
million
Unistyle
Impex
No
$
4
million
Kirat
MIS/ERP
in place
Turnover
$ million
Name
of
Organisation
Table 5.4
A standardised data collection format was developed (table 5.5) and then pilot tested
with 10 orders. Every activity was classified into two types, either the activity duration
was less than or equal to one working day or more than one working day. For example,
fit sample dispatched to buyer or fit comment received from buyer were activities
indicated by one date. As fit sample making or fit sample approval process by buyer
might take more than one day, two dates needed to be mentioned, the start and finish
dates. For every activity there were two columns; the first captioned On/From and the
second captioned To. For activity less than or equal to one working day, one date was
entered in the first column. For activities spanning for more than one working day, start
date was entered in the first column and finish date in the second column, thus capturing
the duration of any activity.
The duration of iteration (if any) could be calculated first by deducting the To column
date from the On/From column date and then adding the Days column in case there
was more than one iteration. The total lead time, pre-production time and production
time was to be calculated by deducting the preceding activity date from the terminal
activity date (and not by adding the activity durations), as this would automatically
calculate the longest path and cancel out the problem of concurrence.
Table 5.5
Fabric description:
Order quantity/original delivery date:
On/From
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
To
Days
152
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
To begin with, the initial order progress tracking format (table 5.5) had 45 activities to
be tracked. During pilot testing it was observed that micro details of certain activities
were generally not available (neither documented nor in memory), but did not really
affect the objective of the study. Accordingly, to ensure data availability, authenticity
and consistency, necessary modifications were done and the format was finalised for
data collection (Table 5.6). However it was still necessary to maintain some flexibility
in data collection, depending on some particular variation in order requirements, if
style-specific. The final format had 20 activities to be tracked; a possibility of two
iterations each were provided for six activities that were prone to iteration. Out of six
activities for possible iteration, two were sample making-related and the other four were
accessories-related. In case the number of iterations exceeded two, one more row was to
be inserted in the respective activity.
153
Table 5.6
Country of buyer
Type of Buyer: Store/catalogue/importer/other*
Garment description:
Fabric details - Knits/wovens/solid dyed/yarn dyed/print*
Fabric description:
Order quantity/original delivery date:
Date
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Activity Description
Date buyer meeting (sampling request+specifications received)
On/From
To
Days
154
Data for total of 100 orders was planned to be captured with 12 orders each from nine
organisations over a period of one year through different sources and through various
means. Data from Kirat and USI was collected in person; from VO Enterprises, Misami,
Essel Inc. and H&M, data was recorded and forwarded by the merchandise manager;
data from GI was recorded by student associates as part of their directed research. Each
data sheet was checked, query sent, if any, and only then was the final data sheet
accepted. The collected data was then screened for completeness and obvious
inaccuracy.
5.2.2
Data Collection
To ensure that all data was factual rather than the impression of merchandising
manager, it was emphasised that all data was actually copied from written records
(style/order file, data or communication file like fax, e-mail, etc.). As the emphasis was
on actual data, even if one or two activity data (out of 20) for any style was missing
from the records, that order was dropped for further calculation so that only complete
data sets were used.
One filled up order progress tracking format from USI is presented in table 5.7 as an
example. Basic order details and activity dates are recorded in the format. Missing data
for some activities like size set, PP (pre-production) sample indicated that those
activities were not present for that particular order. It was also seen that fit sample and
lab dip were sent for one iteration each. Out of 100 units of data collected, styles/orders
having incomplete and absurd data were removed and data for only 72 orders was
accepted for final analysis. Further, in eight out of 72 orders, it was observed that the
total approval time was more than total pre-production time; this was because more than
one approval process took place simultaneously and the same time / duration was
added. Data for those eight orders was also discarded and the remaining 64 orders
analysed and the results summarised in table 5.8
155
Table 5.7
Country of buyer
Type of Buyer:
Garment description:
Fabric details - Knits/wovens/solid dyed/yarn dyed/print*
Fabric description:
Order quantity/original delivery date:
Style
Date buyer meeting (sampling request+specifications received)
Date FIT samples were sent to the buyer
Date comment (approval/rejection) received from the buyer
Duration of FIT 1st iteration
Duration of FIT 2nd iteration
Date Order Confirmation (Qty+Delv+Price)
Spec+swatch+col reference received to start sampling
Date size set were sent to buyer
Date comment on size set from buyer
Duration of size set: 1st iteration (steps 5 - 6)
Duration of size set 2nd iteration (steps 5 - 6)
Date lab dip were sent to the buyer
Date comment (approval/rejection) on lab dip from buyer
Duration of lab dip 1st iteration(steps 7 - 8)
Duration of lab dip 2nd iteration(steps 7 - 8)
Date first lot finished fabric received in store
Date bulk fabric (from first lot) sent to buyer for colour approval
Date bulk fabric colour (approval/rejection) received from buyer
Duration of fabric colour approval 1st iteration (steps 10 - 11)
Duration of fabric colour approval 2nd iteration (steps 10 - 11)
Date processed fabric (first approved lot) sent for lab test
Date lab test comment (approval/rejection) received
Duration of lab test 1st iteration
Duration of lab test 2nd iteration
Duration of lace approval
Duration of label approval
Date Bulk embroidery thread sent to buyer for approval
Date Bulk embroidery thread approval/rejection received
Duration embroidery thread approval 1st iteration
Duration embroidery thread approval 2nd iteration
Send PP sample to buyer/photoshoot
Go ahead for production
Duration cutting
Duration Embelishments/embroidery
Duration Sewing
Duration washing (if applicable)/finishing
Date production piece sent to buyer (pp sample)
Date goods out of factory (in exporting country)
AMC
ladies
top
with
embroidery
Knit
Single Jersey
960 pcs
us-102
On/From
To
02/13/04
03/11/04
03/27/04
04/10/04
04/15/04
Duration
27.00
16.00
5.00
0.00
02/13/04
02/19/04
03/08/04
03/09/04
03/15/04
03/15/04
03/26/04
03/27/04
03/28/04
0.00
0.00
0.00
18.00
1.00
0.00
0.00
1.00
0.00
0.00
03/29/04
04/03/04
04/10/04
04/10/04
04/19/04
04/19/04
04/15/04
04/15/04
04/14/04
04/14/04
04/19/04
04/20/04
04/17/04
05/03/04
04/22/04
04/28/04
05/02/04
05/02/04
5.00
0.00
0.00
5.00
5.00
0.00
0.00
0.00
156
MP 615
H&M07
girls party shirt
short+shirt
sparkly t shirt
9109-CR
31300020
JDW-160
ELC-1136
ut-006
up-002
9109-CR
mg-11
9125-CR
Vichy-group
carnbey-6
9125-CR
29018
tt-614
I-04-2
I-04-1
K-04-123
K-04-123 Robe
SSD 127
SSD 127
MP 613
us-102
BN 101
Printed voil
RM04
S4r-356 dash
Dress
NJB 359
NJB 359
Emb Skirts
Dress
pd 24
pd 24
HNM-6
T-shirt
Skirts
Dress Set
474G
262
136
109
180
84
170
99
198
82
86
86
170
68
170
201
78
170
220
79
138
152
154
154
183
183
173
80
149
137
199
78
163
154
154
129
153
176
176
104
233
175
180
118
31
35
45
110
19
34
18
118
26
14
14
34
21
34
38
6
34
52
17
37
51
104
104
32
32
34
19
12
37
60
15
22
24
24
50
20
10
10
32
91
92
102
25
230
101
64
70
65
136
81
80
56
72
72
136
47
136
163
72
136
167
62
101
101
50
50
151
151
138
61
137
100
139
63
141
130
130
79
133
166
166
72
142
83
78
93
88
74
59
39
77
80
82
40
68
84
84
80
69
80
81
92
80
76
78
73
66
32
32
83
83
80
76
92
73
70
81
87
84
84
61
87
94
94
69
61
47
43
79
194
83
53
39
42
94
53
58
30
42
49
86
30
130
53
47
112
87
41
24
24
16
16
51
51
119
38
55
29
129
40
20
43
43
27
15
61
61
27
25
16
28
40
84
82
83
56
65
69
65
73
54
58
68
63
64
96
33
65
82
52
66
24
24
32
32
34
34
86
62
40
29
93
63
14
33
33
34
11
37
37
38
18
19
36
43
% pre-production time
out of total lead time
pre-production
Total
time
Total
lead
time
(sampling request to
goods ship out)
Order code
Table 5.8
96
41
22
23
19
37
21
20
13
16
16
29
10
26
29
11
19
22
8
13
13
5
5
15
15
13
5
11
7
9
4
8
7
7
4
6
5
5
2
3
0
0
0
42
41
34
33
29
27
26
25
23
22
22
21
21
19
18
15
14
13
13
13
13
10
10
10
10
9
8
8
7
6
6
6
5
5
5
5
3
3
3
2
0
0
0
contd
157
Total pre-production
time
%
pre-production
time out of total lead
time
Order code
Total
lead
time
(sampling request to
goods ship out)
400 H
CTR 6020
SW 149B
Lt 14
BNW 119
MH 046
CTR 6103
ELC-1137
474G
400 H
CTR 6020
BNW 119
MH 046
CTR 6103
SC00PJ
HNM-3
HNM-1
HNM-1A
HNM-4
HNM-4A
HNM-5
127
128
135
155
167
177
199
85
118
127
128
167
177
199
63
90
93
93
102
102
121
34
36
21
15
13
30
29
22
25
34
36
13
30
29
23
36
36
36
35
35
70
93
92
114
140
154
147
170
63
93
93
92
154
147
170
40
54
57
57
67
67
51
73
72
84
90
92
83
85
74
79
73
72
92
83
85
63
60
61
61
66
66
42
50
36
28
28
40
75
70
6
40
50
36
40
75
70
11
35
6
26
51
41
33
54
39
25
20
26
51
41
10
43
54
39
26
51
41
28
65
11
46
76
61
65
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Average
SD
Max
Min
142.1
44.7
262.0
63.0
37.1
26.3
118.0
6.0
104.9
42.5
230.0
40.0
73.5
15.1
94.3
32.5
49.5
33.2
194.0
6.0
47.7
21.8
95.6
9.5
16.0
16.0
96.0
2.0
15.2
10.7
41.7
2.1
The data was analysed using spreadsheet. The following conditions were assumed for
ease of calculation.
For calculating duration of any activity (from the start and finish date), calendar
days were considered (not working days).
Order lead time (OLT) was calculated as duration between date of goods out from
the factory and date of order confirmation.
Total production time (TPT) was calculated as duration between date of goods
out from the factory and date cutting started.
158
Total approval time was calculated by adding up all approval related times,
including sample, raw material and accessories approval.
All iteration activities were earmarked in the format and wherever any approval
related activities were repeated (due to rejection in first attempt) the time duration
was noted. Total iteration time was cumulative of all attempts, if any.
Importantly, manufacturing cycle time for woven and knit merchandise will differ
and cannot be compared with each other. In the above data, there is woven as well
as knitted merchandise but instead of analysing the absolute time, for certain tasks
percentage time out of total time was calculated and thus the effect of raw material
type was nullified in the analysis. There was another important factor i.e. value
addition like washing, embroidery, etc. These tasks and related approvals were not
mandatory for all orders; such tasks were carefully omitted from the final analysis
and only mandatory tasks irrespective of merchandise type (as defined in the
format) were considered in data analysis.
In 24 out of 64 orders the iteration time was zero, meaning that in those 24 orders, all
approvals were done right first time. Analysis was carried out separately for orders that
had iteration and those that did not have (table 5.9).
% pre-production time
out of total lead time
Total pre-production
time in days
Order Details
Table 5.9
Average for 64
orders
with
or
without iteration
142.13
37.14
104.94
73.50
49.5
47.70
16
15.19
29.43
Average for 24
orders
without
iteration
Average for 40
orders with iteration
134.42
35.71
98.71
72.02
38.79
40.33
N/
A
N/A
N/A
146.75
38
108.68
74.38
55.93
52.13
16
15.19
29.43
159
Iteration time for six different activities for different order groups are listed in table
5.10. Activities related to approval could be divided into three categories, namely
sample approval, fabric development/procurement-related approval and accessories
procurement-related approval. While iteration for fit sample and size set approval was
found frequently, iteration for fabric and accessories was rare.
3
4
5
6
21
17
6
0
0
7
0
0
0
0
0
0
0
20
0
7
0
0
11
0
0
0
0
0
0
0
55
17
92
32
5
14
5
33
0
14
0
0
0
20
0
0
0
0
0
0
0
0
0
0
0
0
9
0
19
0
0
5
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total
42
21
28
16
0
0
5
4
0
0
0
0
0
GI-11
Kirat
leela-14
Shilpee-8
Duration of Activities
USI-11
Order Group
H&M-9
Table 5.10
167
55
152
48
5
37
18
37
0
14
0
0
0
To find out the interdependency between total manufacturing lead time, pre-production
time, approval time and iteration time, data was illustrated using scatterplot, outliers14
were removed, and coefficient of determination (indicated by R2 in the graph)15 was
calculated.
14
Data points that diverge from the overall pattern and have large residuals are called outliers.
It is interpreted as the proportion of the variance in the dependent variable that is predictable from the
independent variable.
15
160
Average manufacturing lead time was found to be 136 calendar days. A strong positive
correlation (0.96) between manufacturing lead time and pre-production time suggested
that pre-production activity was the driver of total lead time, the following equation
(figure 5.5) represents the dependency between them. A relatively high coefficient of
determination (0.92) indicates nearly 92% of the variance in manufacturing lead time is
predictable from pre-production time.
Y= 0.98X + 30.70
Where Y = manufacturing lead time
And
X = pre-production time
Figure 5.5
time
Similarly approval duration of sample and raw material positively influence the preproduction duration. The correlation between approval duration and pre-production
duration was found to be 0.63. The following equation (figure 5.6) represents the
mathematical relation between them. A moderate coefficient of determination (0.40)
indicates nearly 40% of the variance in pre-production time is predictable from approval
duration.
Y = 0.83X + 59.8
Where Y = pre-production time
And
X = approval time
161
Figure 5.6
Similarly a relatively strong correlation (0.92) between total approval time and iteration
explains that iteration was the main reason behind lengthy approval time. The following
equation (figure 5.7) explains the relation between them. A relatively high coefficient of
determination (0.84) indicates nearly 84% of the variance in approval time is
predictable from iteration time.
Y = 1.66X + 21.72
Where Y = approval time
And
X = iteration time
Figure 5.7
162
Out of 40 orders studied (that were having some kind of iteration), in 5 orders there was
iteration during fit sample approval as well as during size set approval. Out of balance
35 orders In 24 cases iteration was during fit sample approval, while in only 11 cases
iteration was during size set approval. The fit sample making requires in depth
understanding of silhouette in context with the specification, while size set sample
making merely use the grade rule (often supplied by buyer). This indicates either
incapability of correct interpretation of the sketch and specification and/or due to
changes asked by buyer.
163
5.2.4
Conclusion
It was clearly established that delay contributing activities in the manufacturing cycle
were pre-production activities, specifically sample making approval-related activities.
Apart from the scheduled activities that could be eliminated, compressed or made
concurrent, as much as 29 percent of approval time, or 15 percent of pre-production
time or 12 percent of total manufacturing lead time could be saved by ensuring right
first time (eliminating iteration). Poor record maintenance, commonplace in most
factories, was the main problem in data collection. Even though these were routine
activities for every order in every factory, record for the actual dates of completion or
duration of activities were not always available. It was observed that even in the best
managed factories, all relevant data (of selected 20 activities that were listed in the
above format) were not available at a single source. In some cases, it was quite often
observed that data of one or two activities of some style were simply not recorded.
One interesting but important observation was that all activities that involved movement
of material or paper outside the company were recorded religiously in some register or
another, whereas activities involving movement of material or information within the
factory/company premises were often not recorded anywhere. For example, date fit
comment received from buyer could easily be found in fax/e-mail records or courier
dispatch/receipt register. But the exact date/time when date fit comment was conveyed
to sampling in charge (to re-make fit sample) was not found anywhere as the same was
probably conveyed verbally. In some cases, comments were handed over immediately
but in a number of cases, the merchandiser took 1-2 days before handing over
comments. The fit comments held up for 1-2 days before being handed over to the next
person was tantamount to non-value added waiting time and generally added as such
to the next activity.
Towill (1996) explained how lead time reduction was possible through elimination
(removal of an activity), compression (removal of time within an activity), integration
(re-engineering interfaces between successive activities) or concurrence (activities
operated in parallel). As elimination, integration or concurrence could sometimes be
organisation or product-specific, it was evident that general benefit to industry as a
whole would accrue from compression techniques such as collaborative product
164
development (section 2.3.3), vendor managed inventory (2.5.1.1), critical path and/or
critical chain concept (2.4.2), which could be universally applied across organisations.
While comparing between the trend lines it was obvious that pre-production and
approval process has strong influence on total cycle time and pre-production time
respectively. Iteration, which is not a mandatory but an occasional sub-set of approval
process, and found to have strongest influence on approval time. This also establishes
that iteration delays, whenever happens have telling affect on approval time and
subsequently on total cycle time.
While more than 84% of the cases approval time is explained by iteration time and
more than 92% of the cases manufacturing lead time is explained by pre-production
time; a moderate 40% of the variance in pre-production time is predictable from total
approval duration. This is probably due to the fact that approval of sample is only part
of the total approval duration which is generally found to be delayed; the colour and
accessories approval form the rest of the approval process which is generally not
delayed.
5.3
While some literature reported 17 percent (Bruce et al. 2004) to 33 percent (GEAC
1999) value added time in the apparel supply chain, other studies on Indian apparel
manufacturing organisations (Agarwal and Sahani 2007, Nagar et al. 2008) reported
merely 1-4% value added time in thee manufacturing activities of a supply chain
(section 2.5.4.1). The substantial difference in percentage of value added time could be
attributed to the fact that while GEAC (1999) and Bruce et al. (2004) categorised
activities into only two categories: value added and non-value added. Presumably, the
necessary non-value added (NNVA) activities were clubbed with value added
activities in the former study, while Agarwal and Nagar had considered necessary nonvalue added (NNVA) as a separate category. Further, it was observed that in the earlier
studies, VA and NVA was measured using value stream mapping (section 2.5.4.1), the
format of which was probably designed for measuring in-house activities. It was clear
from literature (sections 2.3.1 and 2.3.2) and the case study (sections 4.3 and 4.4) that
PD and pre-production activities involved many out-of-workplace activities (involving
upstream and downstream players). The purpose of this longitudinal study was to
165
5.3.1
Methodology
Typical case purposive sample selection method was followed and data was collected
through structured format (section 3.4). Two manufacturing organisations, Kirat and
UniStyle Impex (USI) were selected for the longitudinal studies based on the
parameters explained in section 3.4. The sample organisations also had young
management team; thus open to ideas, which would help categorising VA, NVA and
NNVA activities.
For the purpose of this longitudinal study (better understanding, interpretation and
appreciation by the executives in the factory) the non-value added activities were rechristened as:
The initial format used for data collection was improvised from the one used earlier in
tracking pre-production activities (table 6.10). The format for capturing order progress
data had a list of 20 activities. First, an effort was made to identify any activity and
classify it as one of the existing 20 activities. But, while classifying manufacturing
activities into value added and non-value added, it was realised that the old formats
were designed to capture dates or duration of certain activities and it was not possible to
segregate value added and non-value added activities using the same format. For
example, duration FIT samples (with counter) were made was a value added activity
due to conversion. Start date was 03 March and finish date 05 March. But it was not
possible to segregate the time duration when actual conversion took place and the time
duration the sample/half finished sample was waiting for the next process during that
time span.
166
Table 5.11
Activities
Activity Description
Conversi
on
Transport
Inventory/
Waiting
VA
NNVA
NVA
Table: 5.12
Time
Time taken
VA/NNVA/NVA
Activity 1
06 Feb 2007
1:00:39
0:11:46
NNVA
Activity 2
06 Feb 2007
1:12:25
0:00:28
NVA
Activity 3
06 Feb 2007
1:12:53
Processes
In VSM, data collection format clock time was recorded at the start of every activity.
Then actual time taken for an individual activity was calculated by deducting that start
time from the start time of the next activity (table 5.12). It was, however, found that
these VSM formats were suitable for collecting data where all activities took place
in- house. As the emphasis of the longitudinal study was on pre-production activities,
where a lot of activities were third party dependent, material and information had to
flow in and out of the organisation frequently.
Also, typical VSM formats (appendix X) were found suitable where only one particular
order/style was being tracked by one researcher. In the longitudinal study, data for
167
Table 5.13
Activities
Conversion
(VA)
Transportation
(NNVA)
In days
Actual
time
Waiting (NVA)
In %
Activity 1
Activity 2
Activity 3
Three time durations for each and every activity were being noted in the new format;
namely conversion (Value Added Time), transportation time (Necessary Non Value
Added time) and Actual Time. Non Value Added (waiting) Time was calculated by
deducting the sum of VA and NNVA from total actual time. In first two columns Value
Added time (VA) and Necessary Non Value Added time (NNVA) were recorded in
minutes. The third column recorded the actual time elapsed in days. The waiting time
was expressed as percentage of total time. Waiting time was calculated as
(actual elapsed days x hours per shift x 60 minutes) (total conversion time + total
transportation time).
The format was designed in MS-Excel and calculations were done by formulae. As
visible from the modified format, activities were mostly classified into conversion and
transport types. True segregation of waiting time from conversion and transportation
activities was possible only when activities were occurring, like the relay race
approach (explained in chapter 2.2.5), where everyone was pulling his/her work from
the preceding activity. However, in real life, this did not happen in pre-production and
production activities. Toyota Sewing System was an exception. After an activity was
over, things were simply put aside and the instruction sheets/ half finished merchandise
waited for the next activity to begin. This waiting time was unaccounted for and
recorded accordingly.
Then, different cost centres in the organisation were identified and classified and an
activity cost centre matrix was developed by mapping all activities against any one or
more cost centres. Cost centres are classified into three categories; in-house (activities
done by company executives inside the organisation, for example sampling), out-of168
5.3.2
Data Collection
For in-house activities, 8 hours per shift was taken for calculation whereas for activities
like couriering sample abroad and getting comments from buyer, 24 hours per shift was
taken for calculation. Bulk fabric procurement could depend on type of fabric and
sewing conversion time would depend on the manufacturing system being followed.
Here, time for micro activities was to be recorded for running (ongoing) orders. Data
could not be collected from orders executed in the past. As the organisations were
already selected based on heterogeneous parameters like working with multiple
procurement channels, working with small and medium buying offices, importers
abroad as well as direct export (section 5.3.1), all ongoing orders were selected for data
collection. Using the improvised format, data was collected and calculated for total 35
orders, 14 being studied at USI by a student researcher (Mr. George) under guidance of
the researcher and another 21 being studied at Kirat personally by the researcher
himself. Data for 35 orders were considered representative enough for providing an
illustrative profile (Saunders et al. 2007, page 193). An example of one such filled up
format (with detailed micro activities) for knitted garments being manufactured in make
through system is given in appendix X and a summary of same is given in table 5.14
Table 5.14
Activities
s4r 1147
AIE
London
Actual Non-value
Value added time (in
added in Waiting
time
min)
min
Time in
in
%
days
Conversion
Transportation
waiting
216
15
1005
75
45
5760
0
2880
45
31
7
9
21339
38865
2356
10005
99
87
70
77
464
15
3969
16
960
2880
960
90
5
12
29
4
976
2865
8991
1814
41
50
65
94
169
15
116
251
2166
170905
0
31500
34335
546
645
525
45
0
0
0
0
0
0
245609
14790
4
8
1
8
18
17
16
2
1260
3199
184
1674
4415
0
6900
813
414
66
83
38
44
3
85
11
43
216
39768
38
Actual
no
of
(total
total
days (not
% waiting
are
conversion transportation
waiting time
time
in
time)
time
critical
path)
Inventory or waiting time (NVA) between different value-added activities was basically
non-value added duration and it was very important that it was eliminated/minimised
where-ever possible.
5.3.3
Data Analysis
Order wise conversion time, transportation time and waiting times for all 35 orders are
produced in table 5.15 below.
Table 5.15
Style no
Conversion
Transportation
Time (min) Time (min)
VA
NNVA
313000200
mg-11
carnbey-6
S4r-356 dash
tt-614
Us-102
sparkly t shirt
Ut-006
Up-002
tt-347
girls party shirt
Ng-2252
474G
400 H-56
S4R-1147
ELC-1136
ELC-1137
I-04-2
21463
46477
16317
45255
20807
94372
28667
56194
20444
17633
13346
13050
9359
28637
45608
26880
30240
48480
6930
6930
6810
6810
5850
5850
6810
6810
6810
4890
5805
5805
2925
4455
14790
5760
6810
5760
Waiting
Time
(min)
NVA
34967
33953
26313
42495
22783
38978
17803
175076
38026
43237
41809
43065
31396
24508
43282
33600
30150
18720
Actual
Elapsed
Time
(min)
63360
87360
49440
94560
49440
139200
53280
238080
65280
65760
60960
61920
43680
57600
103680
66240
67200
72960
% NVA
Time
55.18
38.86
53.22
44.93
46.08
28.00
33.41
73.53
58.25
65.74
68.58
69.54
71.87
42.54
41.74
50.72
44.86
25.65
170
JDW-060
I-04-1
BN 101
BNW 40
SB 123
474G
400 H
CTR 6020
SW 149B
NJB 359
Lt 14
BNW 119
Pd 24
MH 046
SSD 127
CTR 6103
S4R-1147
53280
48480
26400
17280
42720
19200
24000
17280
13440
20640
13440
19200
29280
36000
24480
33600
45608
5805
5805
5760
9600
8080
8080
6810
6810
8080
8080
7200
6240
4800
7200
7200
7200
14790
6975.71
14835
19635
39360
10000
21520
29360
30150
37350
43280
45200
53760
54720
50400
41760
56160
54720
43282
39590.09
73920
73920
71520
36880
72320
56640
60960
61440
64800
73920
74400
80160
84480
84960
87840
95520
103680
77067.43
20.06
26.56
55.03
27.11
29.75
51.83
49.45
60.79
66.79
61.14
72.25
68.26
59.65
49.15
63.93
57.28
38.35
On an average, 50.57% of the actual elapsed time in garment manufacturing (from order
confirmation to goods trucked out of factory) was waiting or non-value added time. A
very high positive correlation (86.35) was found between waiting time and actual
elapsed time. Also, moderate positive correlation (63.41) found between conversion
time and actual elapsed time. However no correlation (12.52) was found between
transportation time and actual elapsed time.
Activity wise conversion, transportation and waiting time was analysed for total 21
orders (studied in Kirat) following the above format. Averages for the same is shown in
table 5.16. Out of 26 activities, only 14 selected activities were analysed for average
conversion, transportation and waiting time. Iterations, if any were left out. While the
conversion time depended on fabric type (woven or knits, yarn dyed, solid dyed or
printed etc.), style (work content), order quantity (number of units per style), the
transportation time depended on country of export, approval policy (i.e. whether
approval was done by the head office in the importing country or liaison office/agent in
the exporting country), mode of transport and communication.
171
Table 5.16
2
3
4
5
6
7
8
9
10
11
12
13
14
Activity Description
FIT samples made and
sent to the buyer
FIT
comment
(approval/rejection)
received from the buyer
Size set made and sent to
buyer
Comment on size set from
buyer
Lab dip prepared and sent
to the buyer
Comment
(approval/rejection) on lab
dip from buyer
Bulk fabric ordered to
received in store
Bulk fabric sent to buyer
and
received
colour
approval
Lab test on bulk fabric
Comment (appval/reject.)
on lab test from buyer
Cutting
Sewing
Finishing
Packing to goods out of
factory
Conversion
time (min)
Transportation
time (min)
Waiting
time
(min)
Actual
elapsed
time
(days)
322.40
45.00
21233.60
45.00
30.00
5760.00
38865.00
31.00
1004.50
45.00
2311.50
7.00
90.00
2880.00
9990.00
9.00
464.00
960.00
976.00
5.00
30.00
2880.00
2850.00
12.00
5169.00
960.00
7791.00
29.00
46.00
315.00
90.00
645.00
1784.00
960.00
4.00
4.00
30.00
2165.63
31500.00
34335.00
2880.00
0.00
0.00
0.00
2850.00
1674.38
6900.00
813.00
12.00
8.00
17.00
16.00
546.00
0.00
414.00
2.00
Activity-wise value added time (conversion and transportation) and non-value added
time (waiting) is plotted graphically in Figure 5.5. From the graph it was clear that in fit
sample and size set sample activities, a huge percentage of time was non-value added
time (waiting time) whereas in fabric sourcing, cutting, sewing and finishing activities,
maximum percentage of time was value added time (conversion time). It was also
obvious that wherever comment/decision was awaited, a sizable percentage of time was
spent on necessary non-value added time (transportation).
172
Figure 5.8
Value Added
Necessary Non Value Added
Activity Description
0.00
Time in Minutes
Another very important insight from the study was interruption in work. Activity time
increased due to such interruptions. While some interruptions were simply non-value
added time, others led to Intermittent Work Interruption. When any activity was in
progress, there could be a sudden request/instruction from a competent authority to stop
that activity halfway and start another. Such phenomena were frequent in pattern
making, sample making, specification sheet making, inspection, and other skill-based
activities. Other types of interruptions during any activity were telephone calls and calls
from the boss. Peers seeking clarifications were difficult to segregate and were absorbed
within activity time.
5.3.3.1
A total of eleven cost centres were identified as in-house and three out-of-workplace.
All third party activities were clubbed onto one category and indicated separately. Table
5.17 shows how each individual activity is linked with one or more cost centres. Store,
sampling and merchandising departments were found to be involved in the maximum
number of activities. Incidentally, just four departments, store/purchase, design,
sampling and merchandising together accounted for 60 percent of the total number of
activities.
173
bulk fabric
1) Buyer meeting
requisition making
finalised design
making
tracing design into
butter paper
tracing design into
garment
pattern
making/cutting
cutting of fabric
Embellishment
embroidery
sewing
finishing
Inspection
&
packing
sending
the
sample to buying
house
3) Third party
activities
4)
Received
comments from
buyer
requisition making
tracing design into
butter paper
tracing design into
garment
pattern grading n
cutting
cutting of fabric
embellishment
embroidery
sewing
of
garments
finishing
Inspection
and
packing
Requisition for lab
dips from supplier
Making
swatch
card
sending to the
supplier
making of lab dip
Costing of the
fabric
Third party
Testing
QA
Industrial Engg.
Dispatch
Finish
Sewing
Cutting
Merchandising
Sampling
Design
Store/Purchase
Marketing
Activity
washing
(Out
House)
(In House)
Embroidery
Table 5.17
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
174
Sewing
rate/lead
time
discussions with
fabric suppliers
making purchase
order
sending to the
supplier
Bulk
fabric
manufacturing
Receive
bulk
fabric
from
supplier
making shade card
sending to the
buyer/buying
agency
sending for lab
test to testing
centre
lab tests done
sending
reports
back to exporter
sending the report
to buyer/buying
agency
making requisition
for threads labels
beadings
sending
to
different suppliers
Consumption of
trims
Sourcing of trims
making
swatch
card
sending trim to
buying house for
approval
garment
break
down, work aid
requirement
machine
&
operator allocation
preparatory
for
spreading
spreading
marker
making
(manual)
cutting
stretching
the
fabric in the frame
making design on
the fabric
beading work
hand embroidery
(if applicable)
Sewing
of
garments
thread cutting
measurement
checking
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
175
Y
Y
Y
ironing
packing n tagging
Inspection
packing
into
cartons
Y
1
5.3.4
12
12
19
Conclusion
176
waiting to be picked up for the next activity). The relay-race technique is a part of an
optimisation technique called critical chain (section 2.4.2).
Another important factor behind the long cycle time in receiving sample approval
comment from buyer is the batch processing pattern. It was prevalent practice by
customers to organise live model fitting session weekly once or twice depending on the
volume of work. Thus in a five working day week (in buyers country) if live model
fitting session happens twice, there will be maximum three days of waiting time for the
samples depending on date of arrival of samples in relation with date of subsequent date
of live model fitting session.
The activity-cost centre matrix clearly proved the fact that pre-production processes
were centred around only a few departments like store/design/ sampling/merchandising,
thus emphasising the skewed workload towards a few departments in the beginning of a
manufacturing cycle.
5.4
Summary
The VA and NVA study established that nearly 50 percent of the time spent in a
manufacturing cycle was NVA (waiting time) and a substantial portion of the same
177
could be minimised by adopting a critical chain approach which was subject to further
longitudinal study. The activity cost centre matrix established that pre-production
processes were centred around only a few departments like store/design/sampling/
merchandising resulting in a possible resource constraint which required further study.
178
Another human tendency was to stop working on one order midway and start another in
response to a shrill demand from another customer. This tendency is referred to as
multitasking in project management literature (section 2.4.2) and should be avoided to
reduce project completion time. The earlier focus group and case study (section 5.3.3)
179
Methodology
Methodology was decided as focus group interview followed by exploratory case study
(section 3.5.1). The focus group sample selection was based purely on critical case
purposive sampling, as the idea was to select those few who are either practicing
collaborative and concurrent product development (CPD) concept or at least aware
about it. The focus group should, also, represent all trading partners, have a progressive
mindset and more importantly, the person representing the organisation should be
knowledgeable and willing to share data and have worked in the same sector for at least
five years. Keeping the above factors in mind, a nine-member focus group representing
nine different organisations was identified.
The expert panel comprised of a merchandiser with Triburg Consultants16, a large
buying house representing major U.S. and a few EU customers; the Director Asia,
Tukatech Inc.17, a CAD/CAM solution provider; the Manager, Marketing at Coats
16
17
www.triburg.com
www.tukatech.com
180
India18, a sewing thread manufacturer and supplier; the Manager, Marketing, Groz
Beckert Asia Limited19, a sewing needle supplier; the Manager PD, from Vaman Mills,
a yarn dyed circular knit fabric manufacturer; the owner of Able Processors, a garment
processing house in Mumbai, India; the R&D Manager from Tex, a zipper manufacturer
from NCR; the General Manager, Operations, at ABC Fashions, a vertically integrated
knitwear facility from NCR, with a turnover of approximately US$ sixteen million,
exporting primarily to the EU and U.S.A. and the Manager Operations from PQR
Fashions, an approximately US$ nine million turnover organisation from Mumbai with
its own in-house manufacturing facility and specialising in washed garments.
Pseudonyms were used for the last five organisations (fifth to ninth) to anonymise their
identity (section 3.8) as desired by the organisations.
As it was difficult to get all experts together in one place at one time, the focus group
was done in the first stage and 'expert knowledge elicitation' in the second stage. Thus,
in the first stage, discussions took place with three experts in conclave and in the second
stage, the researcher visited the experts personally to discuss, understand and record
their observations and views.
During focus group interview information was also sought about any case example
where the principle of collaboration and concurrency was followed and what was the
result. Two cases were found worthwhile for exploration. ABC Fashions, Case-1, was
based in NCR and has a vertically integrated knitwear facility. PQR Fashions, Case-2,
was based in Mumbai with its own in-house manufacturing facility and specialising in
washed garments.
Consultants. Triburg Consultants is a buying agent for premium US labels like Liz
Claiborne and PVH, among others. Both case studies were conducted using historical
data. The information was gathered by personally interviewing key executives from the
manufacturer as well as the buying organisation and from company records, i.e. a
secondary source of information.
6.1.2
Data Collection
Development or sourcing was carried out in two ways: either apparel manufacturers
sourced or developed raw materials (fabrics and accessories) from different vendors and
18
19
www.coatsindia.com
www.groz-beckert.com
181
the buyers office only approved the quality; or buyers collaborated directly with a set
of vendors to develop or source raw materials/accessories and approve quality. The
apparel manufacturers were then required to source materials from that set of buyer
approved vendors. Either way, an approved or preferred supplier could be given the
opportunity to develop a new product in parallel with the purchasing company.
The focus group unanimously agreed that buying organisations could take the lead in
initiating development of three key ingredients directly with suppliers; fabrics,
accessories and garment finishes. While large buyers commonly practiced such an
approach and had a set of nominated (or buyer approved) vendors, small buying
organisations and importers did not follow such a practice. Elaborating the distinction
between large and small buyers, the group defined large buyers as agencies placing a
large order quantity, primarily basic styles, whereas small buyers were involved with
primarily high fashion merchandise in low quantity. [There are two reasons why small
buyers do not follow the nominated vendor route. Firstly, either the quantity of raw
material is not large enough to attract raw material vendors to participate and secondly,
the raw material (especially fabric) is often sourced from the unorganised power-loom
sector that is simply unaware of, and not really progressive enough to understand the
concept].
Another important observation was that when a large order quantity was distributed to
multiple apparel manufacturers, the nominated vendor approach was widely followed,
whereas even if a large order quantity was placed with a single manufacturer, vendor
selection was often left to the manufacturer. The focus group also felt that apart from
large order quantity, raw material vendors often agreed to collaborative development if
the buyer was conceived as a respected name in the industry. The reason behind having
a nominated vendor was further investigated. Although collaborative, higher
efficiency, lesser number of approvals, reduced iteration were cited as common
reasons, concurrence and resultant reduction of time were mentioned by only two
member of the group.
Lastly, another factor that came out as a possible hindrance to practicing collaborative
and concurrent development was the socioeconomic aspect. Collaboration and
concurrence is common within an organisation or between organisations from one
country and/or countries with a similar socioeconomic environment (section 2.3.3).
182
However
practicing
collaborative
and
concurrent
development
between
Many buyers and manufacturers have started to develop partnerships at the global level.
For example, Gap Inc. shared its colour forecast for the current and forthcoming
seasons with Coats worldwide for development of embroidery thread. All Gap vendors
were directed to source all their embroidery thread need from local Coats suppliers.
While some focus group members felt that an awareness programme of these best
practices would help bringing in more and more organisations to practice collaborative
and concurrent product development, other group members felt unless a commercially
sustainable business model was created, an awareness programme simply would not
help. One Focus group expert discussed outsourcing pattern making and sample
approval activities to expert organisations to avoid iteration. Once the expert
organisation developed and got the pattern/sample approved directly by the buyer, the
apparel manufacturer simply sourced the pattern/sample from the expert organisation
and duplicated it. Some US buyers were now following a similar approach.
6.1.3
Case Studies
Triburg Consultants, headquartered in New Delhi, wanted to place a huge order of yarndyed T-shirts with ABC Fashions. The buying agent decided to place the order with two
different manufacturers; ABC Fashions in Delhi and another manufacturer in Ludhiana.
ABC Fashions contacted a textile mill, Vaman Mills, a yarn dyed circular knit fabric
manufacturer, to develop the knitted fabric made of dyed yarn, but this textile mill was
unwilling to meet specified quality and delivery parameters due to the low volume of
the order. ABC Fashions requested the buying agent to intervene; the buying agent
contacted the mill and offered sourcing the total fabric quantity (combined orders of
two manufacturers) from the mill if they were willing to collaborate in the fabric
development. Vaman Mills collaborated with Triburg Consultants from the stage of
yarn quality approval till the finished fabric approval. Once the dyed yarn lots were
approved, garment manufacturers were advised to source yarns only from the
nominated yarn supplier or source knitted fabric from the nominated fabric supplier.
183
The buying agent felt that both colour and quality consistency increased while fabric
development lead time reduced by approximately 40 percent.
6.1.4
The CPD effort for basic versus fashion merchandise showed more weightage
(percentage cost of product) given to fabric in basic merchandise whereas the cost of
fashion merchandise depended more on value addition (either accessories or labour
content). The current practice of collaboration and concurrence seemed primarily due to
convenience and isolated commercial benefit rather than reduction of manufacturing
lead time or the supply chain cost as a whole. While large order quantities were
distributed to multiple apparel manufacturers, buyers resorted to nominated vendors to
avoid multiple approvals. The raw material vendors agreed on collaborative
development with a buyer if the deal was either commercially large enough to be
profitable and/or the buyer was a respected name to be associated with.
Ignorance about time saved through collaborative and concurrent product development
was a direct reflection of how important time was in the contract manufacturing
environment. It may be recalled that a similar view was also expressed during the first
survey about characteristics of the Indian apparel export manufacturing (section 4.1.3).
The missing coordination between trading partners could probably be attributed to their
dissimilar socio-cultural background and the same apprehension was felt by Tyler
(section 2.3.3).
Regarding commercially sustainable business models it was clear that trading partners
were aware of and appreciated the merit of the approach but simultaneously wanted
184
assurance that the benefit generated out of the practice was distributed amongst the
trading partners. Currently, raw material vendors (as well as apparel manufacturers in
some cases) were apprehensive about whether the money saved in the process was
being pocketed by the buyer. It was clear from product development analysis (section
4.2.2) and pre-production network analysis (section 5.1.2) that there were generally
three concurrent routes; first, the sample approval route; second, the fabric development
and approval route and third, the accessories approval route. Tylers concurrent product
development model (figure 2.14, Section 2.3.3) mentioned convergence of ideas from
design, production and material management teams within or between organisations. It
was found that design, merchandising, production, industrial engineering and purchase
(equivalent to material management) executives regularly met and discussed
simplification, material optimisation and resource availability issues during every new
product development. The focus group also mentioned similar practices between
executives of buying and apparel manufacturing organisations, between executives of
buyers and raw material suppliers and between apparel manufacturers and raw material
suppliers. However no structured format or check list was followed during any meeting,
thereby risking omission of some important points either during discussion or in
implementation.
It was concluded from an earlier analysis (section 5.2.3) that sample development and
approval route (which, otherwise, is generally not the critical path) would, in all
likelihood, become the critical path (longest lead time) due to iterations in the actual
scenario. Outsourcing of all sample approval-related activities to an expert organisation
could bring twofold benefits; on the one hand, it could make some activities concurrent
(thus reducing developmental lead time) and on the other, reduce the sample approval
time by compression (eliminating/minimising iteration). However the other group
members felt that the concept was new, unproven and not many organisations were
ready for it yet.
6.1.5
In both the focus group and case studies, the unanimous feeling was that reduction and
consistency of lead time was a must. The 40-43 percent reduction was achieved in the
fabric approval process and not in overall order lead time. As the cases were not
185
documented either at the buyers or manufacturers end, the quantities were determined
from the interview.
It was observed that buyers and small buying agents sourcing low volume fashion
merchandise were apprehensive about sharing information during PD, whereas high
volume basic merchandise buyers did not find any problem. This fully correlated with
information sharing problems mentioned by Lamming (Lamming et al. 2000) and
Fishers supply chain classification (refer chapter 2.3). The two cases analysed clearly
show how volume (due to consolidation of orders) and power/name could initiate the
change. In the buyer approved vendors or nominated vendor concept there were
perceived or notional advantages from the buyers, manufacturers and vendors point
of view. Vendors enjoyed focussed development, higher development to business ratio,
association with big buyers and also the possibility of high volume orders due to
consolidation. From the manufacturers point of view, no searching for vendors, assured
merchandise quality, no hassle of repeated iteration and no requirement of special
expertise were the added benefits. The process made the development cycle faster as
buyers approved merchandise quality only once with the vendor and there was no need
for any further approval with the individual manufacturer; the buyer also enjoyed the
benefit of minimum variability between lots.
186
There were disadvantages too; vendors felt a loss in bargaining power and lack of
variety while manufacturers felt curbed in their freedom of choice of vendors and often
alleged a higher cost of procurement. There was an added responsibility of selection and
development for the buyer who was also often caught in payment and delivery-related
conflicts between manufacturers and vendors. Finally, there was the inevitable concern
of putting all eggs into one basket.
6.2
As explained in section 2.4.2, the critical path is commonly used for monitoring preproduction activity. However, the critical chain has some subtle advantages over the
critical path technique, making it more suitable for human co-ordinated and controlled
activities like pre-production activities in apparel manufacturing. Unlike the critical
path, the critical chain also considers resource availability during optimisation.
Moreover, the critical chain is a compression technique and can be generically applied
to any process. The Critical Chain technique has, therefore, been selected for the
longitudinal case study.
6.2.1
Methodology
As this study was to provide an illustrative profile using a representative case (section
3.5.2), a typical case purposive sampling would be ideal. The case study would require
one company to be selected where the management was open to new ideas and ready to
experiment with at least one actual ongoing order. The organisation was to permit the
researcher to evaluate the current method of scheduling of activities, order tracking,
access to data, and would allow the scheduling of activities to be done as per Program
Evaluation and Review Technique (PERT) / CPM network. The organisation was to
also allow the researcher to brief, train and guide executives as necessary to complete
the case study. Silvershine Apparels was chosen because the managers/employees were
committed to co-operate during the experimentation and also as the company had earlier
participated in the research for delay contributing activities. The executive team was
fully committed to the study. The duration of this case study would be around 142 days
(section 5.2.3) depending on the actual lead time of the order chosen for the study. A
student research team was stationed in the organisation for round-the-clock monitoring
and carrying out instructions from the researcher during the study.
187
One style, named Dolores Top, was selected for experimentation. Pre-production
activities starting from fabric quality approval (activity no. 1) till production start
(activity no.39) were selected for monitoring. The structured observation format was
designed as per data required for preparing PERT/CPM diagram. Before the order
actually started, estimates of the activity durations were called for from concerned
executives, the relationship between each activity was established (activity data table
made with preceding and succeeding activity), and activities scheduled (PERT network
diagram was made) both as per critical chain as well as critical path methodology. The
critical chain concept was briefed to all team members of the organisation and time
estimated for each task and pooled buffer positions. Once the order started everyone
was encouraged to work according to the tenets of Relay Race. Every one was briefed
to finish the activity as early as possible and hand it over to the next person for the next
task. As the order activities moved forward, respective executives were pre-informed
and prepared for tasks to arrive, thus ensuring manual prioritisation and speedy
execution of tasks. As and when any activity was completed, data was recorded in the
table.
6.2.2
Data Collection
Data collection was done in two modes, the Set Up Mode and the Tracking Mode. In
the Set Up Mode order selection, estimation of activity time, activity data table making,
PERT network making and actual data collection format were prepared. In the Tracking
Mode, as the order progressed, the actual start and end date were recorded in the format.
Set Up Mode:
The activity data for Dolores Top was recorded with activity no., activity duration,
previous activity and next activity and is presented in table 6.1. The activity duration for
critical path and critical chain was estimated separately for internal activities. However,
for external activities (not under direct control of the organisation), the duration was
estimated as equal (section 2.4.2). The activity duration was calculated from
information collected from three resources (concerned executive, merchandise manager
in the manufacturing organisation and merchandise manager at the buying
organisation). The activity code numbers in the table are not in serial order as some
188
additional activities were added in between preparing the PERT Chart and planning the
style. The actual number of activities were 49.
Table 6.1
Previous
Activity
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
0
0
0-2
0
0-3
0
0-4
0
0-5
0
0-6
0
0-7
0
0-8
0
7
0
8
0
21
22
23
24
0-27
0
0
2-11
25
26
27
28
3-12
4/1113
13-20
5/12-
Code
No.
Activity Description
0-1
0-2
2-11
0-3
3-12
0-4
4-13
0-5
5-14
0-6
6-15
0-7
7-16
0-8
8-17
0-9
16-23
0-10
17-24
0-27/
28
27-29/
30/31/
32/33
28-39
1-11
1113/15/
16/18
1214/17/
19
13-20
20-29
14-21
Initial processed
margerita green
dyed
fabric
Duration in Days
Critical
Critical
Path
Chain
0-1/2/3/
4/5/6/7/
8/9/10/
27/ 28
21
2
22
3
23
9
24
10
25
11
26
12
27
13
28
16
47
17
48
6
6
4
6
4
6
7
6
7
6
7
6
7
6
7
6
4
6
4
6
3
4
3
7
3
7
3
7
3
7
3
7
3
7
3
4
3
4
20
20
0
10
20
0
19, 20
37, 38,
39, 40,
41
50
23
Accessories ordered
Next
Activity
petal
in-house
24, 26,
27, 34
15
25,
35
15
6
2
6
3
2
3
29
37
30
28,
189
14
29
30
31
32
33
34
35
36
14-21
6/1115
15-22
7/1116
16-23
8/1217
17-24
11-18
37
38
39
40
41
42
43
44
45
46
47
48
12-19
18/20/
25/2729
19/21/
26/2730
18/22/
25/2731
18/23/
25/2732
19/24/
26/2733
29-34
30-35
31-36
32-37
33-38
9-25
49
10-26
34/35/
36/37/
38-39
21-30
38
15-22
22-31
31
39
6
2
3
2
16-23
23-32
32
40
6
2
3
2
17-24
24-33
18-29/
31/ 32
1930/33
6
2
3
2
33
41
37,
40
10
10
38, 41
10
10
29-34
42
30-35
43
31-36
44
32-37
45
33-38
46
50
Pre production sample approval - L/SL IG
50
Pre production sample approval - L/SL TG
50
Pre production sample approval - L/SL LG
50
Pre production sample approval - S/SL TG
50
Pre production sample approval - S/SL LG
Bulk embroidery in-house - Dolores Top petal 37,
40
pink
6
5
5
5
5
5
3
5
5
5
5
5
15
15
34-39
35-39
36-39
37-39
38-39
25-29/
31/32
2630/33
39
39,
39,
- Dolores Top
38, 41
A PERT diagram (figure 6.1) for critical path was prepared based on AOA (activity on
arrow) principle and started with an event named Order Confirmed and ended with an
event named Production Start. These events have a duration of zero (0). Then each
activity was drawn as an arrow that started after Order Confirmation (1, 2, 3, 4, 5, 6, 7,
8, 9, 10, 27, 28 in this example) and led to an event. Similarly, all successive activities
were drawn as arrows coming from preceding activities. The pre-production sample
190
approval was the last activity in the pre-production process (activity 34, 35, 36, 37, 38)
and production started next. The event Production Start is numbered as 39. Out of a
total of 49 activities, only 10 activities were found to be in the critical path and the
critical path time was 46 days. There were three parallel paths having the same time as
the critical path. As the activities are in AOA, they are referred to as 0-1, 1-2, etc. and
the duration of activity is written on the arrow. The earliest start and earliest finish days
of any particular activity was written inside the first parenthesis with a comma; for
example activity 0-2 could start earliest on day 0 and finish by Day 6; similarly,
activity 11-18 could start earliest on Day 10 and finish on Day 25. The critical path was
0-2-11-18-29-34-39 and indicated in the diagram by red arrows.
191
Figure 6.1
The PERT diagram for critical chain was also prepared (Figure 6.2) based on the AOA
principle and followed the same dependency relationship. According to convention
(section 2.4.2), the duration of activities were reduced to half for calculating the critical
chain. However, during the study it was realised that only durations of internal activities
(where control was with the organisation) should be reduced to half while durations of
192
external activities (where control was not with the organisation) should remain the
same. For example, duration of activity 0-5 was reduced to 3 days from 6 days (table
6.1) as 0-5 was an internal activity but duration of 5-14 (table 6.1) remained as 7 days
as it was an external activity. Two types of buffers were calculated for the critical path;
the feeding buffer was inserted at different milestone activities where the feeding chain
intersected with the critical chain and the project buffer was inserted at the last activity
of the critical chain. Buffer duration at any milestone was calculated as 50 percent of
the length of the chain preceding that activity. The critical chain time was 32 days and
therefore project buffer was 16 days. Feeding buffers at all feeding points were
calculated similarly. While the critical chain is indicated in red arrows, the numbers
written in sky colour boxes before the nodes indicate the buffer time for the activity in
number of days. In the critical chain diagram, the latest start and latest finish days of
any particular activity are written inside first parenthesis with a comma; for example
activity 0-9 could start latest on Day 10 and finish by Day 13, meaning that this
activity had 10 days of lag time. The total number of activities in both the critical path
and critical chain network was 49. While in the critical path plan, production start could
take place after Day 46, the same could take place in the critical chain plan on Day 32.
This effectively means that in the critical chain plan, the first activity could start on Day
1 and the last activity finish by Day 32, i.e. 14 days earlier than required. Alternatively,
one could start the first activity on Day 14 and finish on Day 46. In a practical scenario,
planning generally is done end-to-start and in Silvershine Apparels, for the Dolores
Top order, enough lead time was available, so it was decided to anchor production start
on Day 46 (similar to the critical path schedule) and schedule all activities as late as
possible (ALAP) in the critical chain. Figure 6.2 shows the critical chain network with
all activities scheduled ALAP to start production on Day 46.
193
Figure 6.2
The calendar date for order confirmed was 04 March and considered as Day Zero.
Based on the critical path and critical chain networks earliest start/end and latest
start/end days were also calculated and tabulated in a tracking format. For every activity
there were four possible days; for example, activity 2-11 (Lab dip approval - petal pink)
could either start as early as on Day 6 and end on Day 10 or as late as Day 17 and finish
194
on Day 21. In both cases, as per plan, the order would meet the scheduled production
start on Day 46. In the order tracking format (table 6.2) the critical path and critical
chain columns indicate planned start-end date; the last two columns were left blank for
recording actual start-end date in tracking mode.
Table: 6.2
NO
0-1
0-2
2-11
0-3
3-12
0-4
4-13
0-5
5-14
0-6
6-15
0-7
7-16
0-8
8-17
0-9
9-25
0-10
10-26
0-27/28
27-29/
30/31/
32/33
28-39
1-11
11-13/
15/16/18
12-14/
17/19
13-20
20-29
14-21
21-30
15-22
22-31
16-23
23-32
17-24
24-33
18-29/
31/32
19-30/ 33
29-34
30-35
31-36
32-37
Tracking Format: Actual Days vs. Critical Path and Critical Chain
ACTIVITY
CRITICAL
PATH ASAP
CRITICAL
CHAIN ALAP
START
START
END
END
Order confirmed
Fabric quality approval
Lab dip for approval - petal pink
Lab dip approval - petal pink
Lab dip for approval - margerita green
Lab dip approval - margerita green
Fit for approval - L/SL IG
Fit approval L/SL IG
Fit for approval - L/SL TG
Fit approval L/SL TG
Fit for approval - L/SL LG
Fit approval L/SL LG
Fit for approval - S/SL TG
Fit approval S/SL TG
Fit for approval - S/SL LG
Fit approval S/SL LG
Embroidery colour approval - petal pink
Embroidery design approval - petal pink
Embroidery colour approval - margerita green
Embroidery design approval - margerita green
0
0
6
0
6
0
6
0
6
0
6
0
6
0
6
0
6
0
6
9
6
7
6
7
6
13
6
13
6
13
6
13
6
13
6
10
6
10
5
3
6
3
6
8
11
8
11
8
11
8
11
8
11
10
3
10
3
14
6
10
6
10
11
18
11
18
11
18
11
18
11
18
13
17
13
17
Accessory ordered
13
15
4
4
24
24
16
9
26
29
10
25
14
21
10
25
14
21
25
31
25
31
25
31
25
31
25
31
19
33
19
33
19
33
19
33
19
33
23
26
23
26
23
26
23
26
23
26
26
28
26
28
26
28
26
28
26
28
25
35
21
31
25
35
35
35
35
35
41
46
41
46
21
31
31
31
31
31
34
34
34
34
ACTUAL
START
DAY
ACTU
AL
END
DAY
DAY 0 - 4 MARCH
195
33-38
34-39
35-39
36-39
37-39
38-39
25-29/
31/32
26-30/ 33
39
35
41
41
41
41
41
41
46
41
46
41
46
31
34
34
34
34
34
34
39
39
39
39
39
10
25
20
27
10
25
20
27
46
39
Tracking mode:
Once the order was started, actual start and end times were noted against every activity
in the format above. During the tracking mode, executives were instructed to treat the
specific order as a relay race approach; however, no special treatment was given to the
Dolores Top order in terms of activity completion.
Table: 6.3
NO
0-1
0-2
2-11
0-3
3-12
0-4
4-13
0-5
5-14
0-6
6-15
0-7
7-16
0-8
8-17
0-9
9-25
0-10
10-26
0-27/28
27-29/
30/31/
32/33
28-39
1-11
11-13/
15/16/ 18
1214/17/19
13-20
20-29
Tracking Format: Actual Days vs. Critical Path and Critical Chain
ACTIVITY
CRITICAL
PATH ASAP
CRITICAL
CHAIN ALAP
START
START
END
END
ACT
UAL
STAR
T
DAY
ACT
UAL
END
DAY
Order confirmed
Fabric quality approval
Lab dip for approval - petal pink
Lab dip approval - petal pink
Lab dip for approval margarita green
Lab dip approval - margerita green
Fit for approval - L/SL IG
Fit approval L/SL IG
Fit for approval - L/SL TG
Fit approval L/SL TG
Fit for approval - L/SL LG
Fit approval L/SL LG
Fit for approval - S/SL TG
Fit approval S/SL TG
Fit for approval - S/SL LG
Fit approval S/SL LG
Embroidery colour approval - petal pink
Embroidery design approval - petal pink
Embroidery colour approval - margerita green
Embroidery design approval - margerita green
0 DAY - 4 MARCH
0
9
5
6
3
0
6
7
6
6
3
0
6
7
6
0
6
8
6
13
11
0
6
8
6
13
11
0
6
8
6
13
11
0
6
8
6
13
11
0
6
8
6
13
11
0
6
10
6
10
3
0
6
10
6
10
3
14
6
10
6
10
11
18
11
18
11
18
11
18
11
18
13
17
13
17
N/A
0
4
1
4
1
7
1
7
1
7
1
7
1
7
5
12
5
12
N/A
4
10
4
11
7
7
7
7
7
7
7
7
7
7
12
30
12
30
Accessory ordered
13
15
N/A
N/A
4
4
24
24
16
9
26
29
N/A
N/A
N/A
N/A
10
25
14
21
12
28
10
25
14
21
12
28
25
31
19
33
23
26
26
28
37
39
39
45
196
14-21
21-30
15-22
22-31
16-23
23-32
17-24
24-33
18-29/
31/32
19-30/33
29-34
30-35
31-36
32-37
33-38
34-39
35-39
36-39
37-39
38-39
25-29/31
/ 32
26-30/33
39
25
31
25
31
25
31
25
31
19
33
19
33
19
33
19
33
23
26
23
26
23
26
23
26
26
28
26
28
26
28
26
28
37
39
37
39
37
39
37
39
39
45
39
45
39
45
39
45
25
35
21
31
28
45
25
35
35
35
35
35
41
41
41
46
41
35
41
46
41
46
41
46
41
46
46
46
21
31
31
31
31
31
34
34
34
34
34
31
34
34
34
34
34
39
39
39
39
39
28
30
18
17
16
16
37
37
37
37
37
45
37
37
37
37
37
45
45
45
45
45
10
25
20
27
N/A
N/A
10
25
20
27
N/A
N/A
N/A
N/A
46
39
Table: 6.4
Critical Activities
No
Activity
0-2
2-11
11-18
18-29
18-31
18-32
29-34
31-36
32-37
34-39
36-39
37-39
Critical
ASAP
Start
0
6
10
25
25
25
35
Path
End
6
10
25
35
35
35
41
Critical Chain
ALAP
Start
End
14
17
17
21
21
28
28
38
28
38
28
38
38
41
Actua
l Start
Day
0
4
10
22
22
22
34
Actua
l End
Day
4
10
22
34
34
34
37
35
41
38
41
17
37
35
46
38
41
16
37
41
41
46
46
46
46
41
34
34
46
39
39
37
37
37
45
45
45
Apart from collecting order-specific data, several other practices/ conventions were
observed during the case study. It was common practice in Silvershine to make
individual time and action (TNA) calendar for every order that was being processed.
197
These TNA calendar were the same as the critical path in purpose (section 2.4.2). At
any given point of time, any one executive typically followed up 8-10 orders; that
meant, 8-10 separate TNA calendars. On any given day, there were different activities
from different TNA calendars to be executed, and executives typically follow a to-do
list (based on memory) to accomplish the tasks one by one. As no prioritising of
activities was done, every one used to pick up activities from the to-do list at random,
resulting in frequent changeover and intermittent work interruption. However, while the
order was being tracked, it was observed that executives were trying to give priority to
the Dolores Top order to ensure the order was executed in the relay race approach. It
was felt necessary by the executives to automatically prioritise activities as per PERT
network sequence for smooth handover and less interruption.
Out of six activities in the critical path/chain, only two were internally dependent, while
the other four were externally dependent. While comparing actual time taken against
planned in the critical path, it was found that in four out of six critical path activities,
work started earlier than planned and in only two activities, work started on time as
planned. However, in three out of four external activities, time was lost. While
comparing actuals with the critical chain schedule, it was found that in five activities
time was lost and one activity was on time. Even though the first activity was started 14
days early, the last activity finished only one day early, resulting in overall network loss
of 13 days. Another important indication to emerge was that activities depending on
external factors were likely to eat into the buffer time, while internally dependent
activities made up for the loss.
Table: 6.5
Activity
Type of
activity
Start day
End day
Status
0-2
Internal
On time
Early 2
Gained time
2-11
External
Early 2
On time
Lost time
11-18
18-29
29-34
34-39
External
External
Internal
External
On time
Early 3
Early 1
Early 4
Early 3
Early 1
Early 4
Early 1
Gained time
Lost time
Gained time
Lost time
End day
Status
Early 13
Lost time
Early 11
Lost time
Early 6
Early 4
Early 4
Early 1
Lost time
Lost time
On time
Lost time
198
Once the comparative days from table 6.5 were plotted in graphs (figures 6.3 and 6.4),
the results suggested that while activities were being planned by the critical chain
method (where target date was earlier than critical path method), there was a high
chance of completion as per the critical chain target. When the actual working pattern
(i.e. the actual start and end dates of all the activities) in Silvershine Apparels was
correlated with that of planned dates, the critical chain approach showed very strong
positive correlation between actual start of tasks (0.83) and finish of tasks (0.80).
Critical path scheduled dates also showed strong correlation with actual dates and thus
it could be concluded from the above study that both critical path and critical chain have
good correlation with human behaviour and these approaches may be used for lead time
reduction. Assuming that there could never be early delivery, the study also showed that
critical chain could actually reduce lead time by 12 percent.
Figure 6.3
45
40
35
30of Days
Number
CP-Start
25
CC-Start
20
Actual Start
15
10
5
0
Lab dip for
approval petal pink
Lab dip
approval petal pink
Initial
Bulk fabric
Preprocessed in/h - petal production
dyed fabric
sample for
pink
in/h - petal
approval
pink
Preproduction
sample
approval
Activity Descriptions
199
Figure 6.4
50
45
40
35
Number of Days
30
CP-End
25
CC-End
Actual End
20
15
10
5
0
Lab dip for
approval petal pink
Lab dip
approval petal pink
Initial
processed
dyed fabric
in/h - petal
pink
Bulk fabric
in/h - petal
pink
Preproduction
sample for
approval L/SL - IG
Preproduction
sample
approval L/SL - IG
Activity Descriptions
Intermittent work interruption was found common among pattern making, sampling,
quality checking and specification sheet preparation activities. If a dedicated set of
executives was made responsible for the Dolores Top order, then activities could have
been executed in a synchronised manner in a relay race approach. However, as all
executives were working on numerous other orders also (along with Dolores Top
order), it was not possible to implement relay race.
It was realised that the critical path method (CPM) network made on a spreadsheet was
static. When the order was in progress (in tracking mode), the duration of activities
changed, but these changes were not automatically reflected in the CPM network;
instead, one had to take note and change figures manually, which was very
cumbersome. A single change of duration of activity could result in the change of
earliest and latest start/end times of all the linking chains (in Dolores Top case study,
sometimes 8-9 activities), buffer time, maybe even the critical path. Incorporating these
changes manually was impossible in the factory scenario as it was tiresome, time
consuming and error prone. It was thus decided to use specialised CPM software for
longitudinal study.
200
To cross check how executives schedule and followed their daily activities, the pattern
maker and sample master of Silvershine Apparels were asked to prepare a to-do list for
one working day based on the current orders running at that time. While both executives
were following up the same group of orders, they were asked to prepare to-do lists
without consulting each other.
201
Table 6.6
12/09/2002
Serial
1
2
3
4
Order No.
AT009
AT013
AT0021
BZ0013
BZ0015
Table 6.7
Activities
Activity type
Making patterns for fit sample
Critical
Grading patterns for size set sample
Non-critical
Making patterns for fit sample
Critical
Making production pattern from size set Non-critical
comment
Grading patterns for size set sample
Non-critical
12/09/2002
Serial
1
2
3
Order No.
BZ0013
BZ0015
LZ003
Activities
Making production sample
Making size set sample
Fit sample making
Activity type
Non-critical
Non-critical
Critical
While pattern maker Chandar Kumar knew that he had to complete the 5 activities on
12 September, he did not know in what sequence. Anyone would start with the activity
listed first (if printed) or remembered first (if memorised), so Chandar Kumar also
started with AT009. Similarly Surinder Singh would also like to follow his to-do list as
per serial number, but he would not be able to start production sample (first thing in the
morning) for BZ 0013 as production patterns were not yet prepared by his predecessor
(listed as the 4th activity in Chandar Kumars list; may start only in the afternoon).
It was realised that these prioritising problems occurred as the to-do lists were prepared
picking up date specific activities from separate CPM network of AT and BZ orders in
isolation, and not according to any combined CPM network. If a combined CPM
network was made for AT and BZ, then prioritising of activities would have occurred
automatically. Interestingly the idea of combining multiple CPM network into one and
202
then executives following only one integrated network was never thought of by any
merchandising executives. Finally, apart from being complex, the CPM network
making for scheduling activities was very cumbersome and time consuming. Once
durations of activities and activity relationships were established, making of the
network diagram (using MS-Excel) for Dolores Top took 4 man hours (for critical path)
and 9 man hours (for critical chain) respectively. Making of the critical chain took
longer time because calculation of start and end time and corresponding buffer time was
very onerous and prone to error.
6.2.4
The basic philosophy of critical chain was reduction of individual activity time to half
while adding buffer time of 50 percent of the critical path. From the earlier study
(section 5.2.4) it was evident that nearly 41 percent of the pre-production time was
externally dependent. Assuming that durations of externally dependent activities could
not be compressed, adoption of critical chain would theoretically reduce the preproduction lead time by 30 percent. This pilot case study using critical chain showed up
potential of lead time reduction by compressing internal activities. Actual result was
constrained by two factors; first, inability to make multi-style critical chain (for
common resources), leading to inability to synchronise and prioritise activities, leading
to inability to follow the relay race approach. Secondly, lack of synchronised priorities
among certain skill- based activities resulted in interruptions and loss of precious time,
which needs to be addressed in future studies.
The network diagrams for individual orders were manually prepared in MS-Excel. This
was time consuming and prone to error. Although the researcher and associates
themselves prepared the network, it was felt by the company executives that total time
required for making critical path or critical chain network would be prohibitive in
adopting MS-Excel network diagrams in an actual factory scenario. Moreover, it was
unlikely that the understanding and knowledge of critical path/chain would be available
with the organisations executives to prepare such a network. Also, during the course of
progress of orders, often changes were required in activity sequences and durations (one
common cause was iteration, section 5.2.3). Incorporating such changes in Excel had to
be done manually. Once the date of actual execution of any activity was entered, MSExcel datasheet could calculate the variation, however there was no link between the
203
data sheet and the PERT network. Thus it was felt necessary to use specialised software
for critical chain implementation, where automatic update of a network was possible
once durations of activities were entered in the data table.
Another shortcoming felt during the case study was linking of resource availability with
PERT network. As time availability of executives could not be linked with activities
using MS-Excel, it was difficult to calculate resource utilisation and schedule activities
to resources scientifically. In such circumstances, there appeared to be inefficient
stop/start tasks as priorities changed and people tried to multi-task. While shifting from
one activity to another (multitasking) was natural for management-level decisionrelated activities, the same in skill-based activities could cause efficiency loss due to
intermittent work interruption. It was also realised that if multiple PERT networks were
integrated for a group of executives, then combined priorities could be easily worked
out, which would minimise work interruption and resultant stretching of lead time.
Therefore it was felt mandatory to use specialised software for future longitudinal study
where a simple automatic network could be made based on activity duration and
relationship. Quick/accurate re-calculation and dynamic updates were then possible,
resource availability catered for and multiple order networks combined to develop an
integrated network based on resource constraints.
6.3
The case study of critical chain application (section 6.2.4) had concluded that
specialised project management software would be required to demonstrate dynamic
changes of plan due to even a single change of a task duration, to conduct a longitudinal
feasibility study for integrating multiple critical path/critical chain (for multiple orders)
at the organisation level to observe its effect on activity prioritisation and work
interruption. The objective of this longitudinal study was to first identify a generic
critical path/critical chain software which had all required features to take care of
constraints faced in earlier studies using MS-Excel and, secondly, actual scheduling of
multiple orders (multiple critical path networks) in one integrated network and followup workload distribution of executives to analyse how computerised scheduling could
help prioritisation of activities and actually carry out day-to day task for executives.
204
6.3.1
Methodology
The methodology could be divided into three stages; selection of appropriate software,
implementation of the software in a single order to understand the feature and
capabilities, and use of the software to make a multi-order Gantt chart and evaluate how
the software capabilities offer additional advantages (over manual and/or MS-Excel) to
executives involved in executing the tasks.
In the first stage, neither was any sample size decided nor any sampling method
followed for searching and selection of the software. Through contacts in and guidance
of Project Management Associates (an association for promoting project management
throughout the world, http://www.pma-india.org/), a suitable software was identified,
which was found (from brochure and website information) to meet all the necessary
parametric requirements for the longitudinal study.
In the second stage, the necessary features of the software were understood by installing
the software in an organisation and planning a sample order using critical path
methodology and most importantly, understanding the softwares capability to
overcome earlier shortcomings. Basically, any software could offer an advantage in two
ways: helping the direct user in decision making while inputting the parameters and
indirectly through various outputs (reports) it could generate to enable/guide executives
to carry out the tasks in a better informed manner, which otherwise was not possible.
The objective of the second stage was to ensure satisfactory application of the software
features and select the appropriate reports that could be used for executives as a
guide/checklist/reminder. Sample selection method for selecting the organisation was
typical case purposive (section 3.5.2) and data collection was through structured format.
A manufacturing organisation, Kirat, was selected based on firstly the management cooperation received during the earlier two case studies on measuring durations of delaycontributing activities in manufacturing cycle (section 5.2) and to identify and measure
value added and non-value added time in preproduction activities (section 5.3) and
secondly, their willingness to allow planning and executing of selected actual orders
through implementation of specific software and a directive to its executives to follow
the instructions of the researcher during the longitudinal study.
205
The third and final stage involved preparation of a multi-project Gantt chart by
combining more than one order to see how different software features/reports
guided/facilitated executives to carry out their work during actual running of orders.
Selection of orders to combine was typical case purposive sampling from those orders
that were planning to be shipped during the timeframe, i.e. before Jan 2004. Progress of
the combined orders was monitored over a period of 6 months (July 2003 to December
2003) to complete the life cycle of the three selected styles. The order entry in the
software, planning and scheduling was done by the researcher, while all concerned
executives were given software generated workload related reports to check relevance
thereof and what advantages / benefit could accrue in carrying out their activities based
on these reports.
6.3.2
Data Collection
The following criteria were laid down for selection of project management software.
The requirements of software functions were first identified as under:
Ability to switchover between critical path and critical chain mode during planning
as well as tracking of orders.
Ability to calculate resource availability once work content for each activity is
defined and a resource (executive) is allocated to an activity.
Ability to combine/integrate more than two Gantt charts with resource constraints
automatically reflected.
During detailed evaluation, it was found that PS8 from Sciforma Corporation, US
satisfied all listed criteria and was selected for the study. A one-year evaluation version
of PS8 was made available gratis by the software vendor and user support was provided
through e-mail, another important reason for its selection for the longitudinal case
study.
206
Every order of a garment was treated as a project in PS8 software. One order, JDW-HE060-LILAC was selected for PS8 implementation. First, resources were defined in the
Resource List and then assigned to the tasks. A list of 10 resource persons/groups
(termed as executives hereafter) were identified (table 6.8) who could be assigned
activities and/or sub-activities related to the order. All resource persons are classified as
LABOUR, but time availability varied from eight to ten hours per day depending on the
job, i.e., whether it was a desk job or skill-based job.
Table 6.8
Resource #
Availability
1 merchandiser - Suman
Resource Name
LABOR
8h/d
2 merchandiser - Rupa
LABOR
8h/d
LABOR
10h/d
LABOR
10h/d
LABOR
8h/d
LABOR
8h/d
LABOR
10h/d
8 sewing resource
LABOR
10h/d
LABOR
10h/d
LABOR
8h/d
Email Address
The Gantt chart and resource histogram for JDW-HE-060-LILAC order are shown in
figure 6.5. The order had 18 main tasks and a manufacturing lead time of 61 days
(which is effectively the critical path duration). All internal tasks were assigned one
resource executive and tasks linked to predecessor and successor activities by S-S (start
to start), F-S (finish to start) or F-F (finish to finish) relationship. For example fit
sample make was a 7 day task earlier divided into two tasks fit sample make pattern
mkg and fit sample make sewing, both working in parallel with starting lag of 1
day. Pattern master Zakir and sampling team were assigned the two tasks of 6 days
duration each.
207
Figure 6.5
Task #
Task Name
1order confirmation
1d
07/21/03
07/21/03
6d
07/22/03
07/29/03
6d
07/23/03
07/30/03
5d
07/31/03
08/06/03
7d
08/07/03
08/15/03
7d
08/08/03
08/18/03
5d
08/19/03
08/25/03
8fabric sourcing
10d
07/22/03
08/04/03
9fabric approval
5d
08/05/03
08/11/03
5d
07/22/03
07/28/03
15d
07/29/03
08/18/03
25d
08/12/03
09/15/03
1d
09/16/03
09/16/03
14cutting
10d
09/17/03
09/30/03
15sewing
10d
09/19/03
10/02/03
19quality check
10d
09/23/03
10/06/03
16finishing
10d
09/25/03
10/08/03
17packing
6d
10/03/03
10/10/03
1d
10/13/03
10/13/03
10accessories approval
Current Task
All Tasks
Av ailable Units
Units in Days
C o mp lete
Critical
R e ma ining
R e ma ining Mile s to ne
Parent
C o mp lete
Page [ 1 ,
R ema ining
R ema ining
1 ,
] of [
60
50
40
30
20
10
0
Default
Qtr3, 2003
Qtr4, 2003
Jul
Aug
Sep
Oct
Nov
Dec
7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22
Free Floa t
D e la y
N o n-R es ou rc e
Bas eline 1
R e qu ired D a te
1 ]
The Gantt chart showed the scheduled start and finish dates and duration, critical tasks
in red colour bar and free floats in non-critical tasks. Free float is the amount of time a
non-critical task could be delayed or extended without affecting the start of a successor
task, indicated in the Gantt chart as blue cross-hatching at the right end of a task bar.
Positive Total Float is that amount of time a non-critical task could be delayed or
extended before the task became critical. The bottom of the picture showed weekly
utilisation of resources in the form of a histogram (the current task by a red cross in the
histogram only indicates the selected task by a cursor at any given point). The
requirement of dynamic change of plan (Gantt chart) due to a single change of task
duration was checked and found to be working satisfactorily. Figure 6.6 shows how
change of duration of fit sample and size set (in case of iteration) dynamically changed
the critical path, the duration of critical path from 61 to 73 days and the resource
workload pattern in the histogram.
208
Figure 6.6
Task #
Task Name
Duration
1 order confirmation
Schedule Start
1d
07/21/03
12d
07/22/03
12d
07/23/03
10d
08/08/03
14d
08/22/03
14d
08/25/03
10d
09/12/03
8 fabric sourcing
10d
07/22/03
9 fabric approv al
5d
08/05/03
5d
07/22/03
15d
07/29/03
25d
08/12/03
1d
09/26/03
14 cutting
10d
09/29/03
15 sewing
10d
10/01/03
16 Quality check
10d
10/03/03
17 finishing
10d
10/07/03
18 packing
6d
10/21/03
1d
10/29/03
10 accessories approv al
Jul
14
21
28
Qtr3, 2003
Aug
11
18
25
Sep
15
22
29
Oct
13
20
27
Qtr4, 2003
Nov
10
17
24
60
50
Current Task
All Tasks
Available Units
40
Units in Days
30
20
10
Page [
] of [
After all the required predetermined features were found to be working satisfactorily,
the various report options were studied. The software could generate 60 different types
of reports. After analysing all the reports generated by PS8, five reports were selected
to be used as a guide to executives while working on the multi-project Gantt chart. The
reports are titled Resource Assignments, Resource Project Task Effort, Weekly
Resource Utilization, To Do List and Resource Levelling Analysis.
209
Figure 6.7
R es ID
R esource N ame
38A5ILQ
J ul 21
Alloc ated
% U s ed
40h
100 %
Av a ilable
38A5ILY
merc handis er - R u pa
38A5ILZ
38A5ILT
Aug 11
Aug 18
40h
Aug 4
40h
Aug 11
4 0h
Aug 18
32h
40h
40h
8h
% U s ed
80%
100%
100%
2 0%
40h
J ul 21
8h
J ul 28
3 2h
Aug 4
Aug 11
Alloc ated
32h
16h
16h
40h
% U s ed
64%
32%
32%
80%
Av a ilable
18h
34h
34h
J ul 21
J ul 28
Aug 4
10h
Aug 11
Aug 18
5 0h
Aug 18
Alloc ated
24h
24h
8h
40h
8h
% U s ed
48%
48%
16%
80%
1 6%
26h
J ul 21
Aug 25
Sep 1
Sep 8
26h
J ul 28
42h
Aug 4
10h
Aug 11
4 2h
Aug 18
4 0h
Aug 25
4 0h
Aug 25
5 0h
Aug 25
5 0h
Aug 25
4 0h
Sep 1
4 0h
Sep 1
5 0h
Sep 1
5 0h
Sep 1
4 0h
Sep 8
4 0h
Sep 8
5 0h
Sep 8
5 0h
Sep 8
5 0h
Sep 15
8h
32h
4 0h
4 0h
4 0h
4 0h
8h
% U s ed
80%
100%
20%
80%
1 00%
1 00%
1 00%
1 00%
2 0%
Av a ilable
8h
32h
8h
J ul 21
Sep 22
Sep 29
Oc t 6
Oc t 13
J ul 28
Aug 4
Aug 11
3 2h
Aug 18
Aug 25
Sep 1
Sep 8
Sep 15
40h
Sep 22
40h
Sep 22
50h
Sep 22
50h
Sep 22
40h
Sep 22
40h
Sep 29
40h
Sep 29
50h
Sep 29
50h
Sep 29
40h
Sep 29
40h
Oc t 6
40h
Oc t 6
50h
Oc t 6
50h
Oc t 6
40h
Oc t 6
8h
Oc t 13
8h
Oc t 13
10h
Oc t 13
10h
Oc t 13
8h
Oc t 13
8h
2 0%
40h
J ul 21
40h
J ul 28
40h
Aug 4
40h
Aug 11
4 0h
Aug 18
4 0h
Aug 25
4 0h
Sep 1
4 0h
Sep 8
3 2h
Sep 15
40h
Sep 22
40h
Sep 29
40h
Oc t 6
8h
Oc t 13
Alloc ated
2 4h
40h
16h
8h
% U s ed
4 8%
80%
32%
80%
Av a ilable
s ew in g res o urc e
50h
J ul 21
50h
J ul 28
50h
Aug 4
50h
Aug 11
5 0h
Aug 18
5 0h
Aug 25
5 0h
Sep 1
5 0h
Sep 8
Alloc ated
% U s ed
Av a ilable
finis hing & pac k ing res o urc e
50h
J ul 21
50h
J ul 28
50h
Aug 4
50h
Aug 11
5 0h
Aug 18
5 0h
Aug 25
5 0h
Sep 1
5 0h
Sep 8
2 6h
Sep 15
10h
Sep 22
34h
Sep 29
8h
40h
32h
1 6%
80%
64%
4 2h
10h
Sep 15
Sep 22
18h
Sep 29
50h
Oc t 6
50h
Oc t 6
Alloc ated
16h
48h
64h
% U s ed
32%
96%
128%
Av a ilable
38A5ILX
5 0h
Sep 15
40h
% U s ed
38A5ILW
4 0h
Sep 15
32h
Av a ilable
38A5ILV
4 0h
Sep 15
Alloc ated
Alloc ated
38A5ILU
Sep 15
20%
J ul 28
Alloc ated
Av a ilable
38A5ILS
Aug 4
8h
32h
J ul 21
Av a ilable
38A5ILR
J ul 28
50h
J ul 21
50h
J ul 28
50h
Aug 4
50h
Aug 11
5 0h
Aug 18
5 0h
Aug 25
5 0h
Sep 1
5 0h
Sep 8
5 0h
Sep 15
Alloc ated
% U s ed
Av a ilable
40h
40h
40h
40h
4 0h
4 0h
4 0h
4 0h
4 0h
34h
Sep 22
2h
Sep 29
-14h
Oc t 6
32h
40h
8h
80%
100%
20%
8h
32h
2h
Oc t 13
10h
Oc t 13
10h
Oc t 13
8h
The objective of stage 2 was to accurately and realistically map the workload of internal
resources using software, so that clear priorities could be worked out. Accordingly all
pre-production tasks were further subdivided into sub-tasks keeping in mind how
different resource executives and/or external resources were involved. It was also
realised that sometimes one executive was involved in a task in a phased manner,
thereby it was important not to assign that resource at one go. For example fit sample
make was divided into 4 sequential sub-tasks; pattern making - material conformity cut & sew - fit check. Pattern Master Zakir was involved in the first and last sub tasks
i.e. pattern making and fit check, while merchandiser Suman and the sampling team
were assigned to material conformity & cut and sew respectively.
210
Task Name
0.4d
material conformity
quality c heck
13
14
15
16
2d
2d
2d
6d
27
28
31
32
10d
10d
6d
1d
39 quality check
40 finishing
41 packing
C o mp le te
Paren t
R e ma in in g
Critical
Page [
C o mp le te
Defau lt
Units in Days
] of [
C o mp le te Mile s to n e
Jul
14
R e ma in in g
R e ma in in g
10
20
30
40
50
60
10/13/03
10/10/03
10/08/03
10/06/03
10/02/03
09/30/03
09/16/03
09/16/03
09/16/03
09/16/03
09/15/03
09/09/03
08/14/03
09/15/03
08/18/03
08/14/03
08/07/03
08/18/03
07/28/03
08/11/03
08/04/03
07/31/03
07/31/03
07/29/03
08/04/03
08/26/03
08/19/03
08/18/03
08/14/03
08/11/03
08/07/03
08/19/03
08/06/03
07/30/03
07/29/03
07/24/03
07/22/03
07/30/03
07/21/03
07/21/03
07/21/03
07/21/03
Schedule Finish
C o mp le te Mile s to n e
10/13/03
10/03/03
09/25/03
09/23/03
09/19/03
09/17/03
09/16/03
09/16/03
09/16/03
09/16/03
09/10/03
08/15/03
08/12/03
08/12/03
08/12/03
08/05/03
07/29/03
07/29/03
07/22/03
08/05/03
08/01/03
07/30/03
07/30/03
07/22/03
07/22/03
08/20/03
08/15/03
08/14/03
08/12/03
08/08/03
08/07/03
08/07/03
07/31/03
07/30/03
07/25/03
07/23/03
07/22/03
07/22/03
07/21/03
07/21/03
07/21/03
07/21/03
Schedule Start
R e ma in in g Mile s to n e
Available Units
All Tasks
Current T ask
10d
0.4d
0.3d
38 sew ing
36
10d
35
0.3d
1d
4d
18d
3d
25d
5d
8d
8d
15d
37 cutting
specification check
34
30
26
5d
22
21
5d
20
10d
5d
3d
3d
3d
19
1d
pattern mkg
12
2d
9d
1d
5d
fit check
3d
material conformity
2d
1d
pattern mkg
7d
0.3d
0.3d
1d
Duration
28
25
T o ta l F lo a t ( + )
Sep
15
22
T o ta l Flo a t ( - )
29
R e q u ir e d D a te
merchandiser - Rupa
merchandiser - Rupa
merchan diser - Ru pa
F r e e F lo a t
merchandiser - Suman
R e ma in in g Mile s to n e
18
R e ma in in g Mile s to n e
Qtr3, 200 3
Aug
11
merchandiser - Suman
21
Task #
Figure 6.8
13
Oct
20
27
10
Qtr4, 200 3
Nov
17
211
24
The above Gantt chart (figure 6.8) shows all the tasks (blue text) with subtasks (brown
text), name of resources allocated against each task, and duration of each subtask. The
total numbers of tasks increased from 19 to 42; however the total duration of
manufacturing cycle remained 61 days. The histogram at the bottom of figure 6.8
depicts the workload distribution in different weeks.
While analysing the weekly workload of executives with and without sub-tasks, it
became clear that sub-tasks helped in correct distribution of resources. For example, in
the absence of sub-tasks merchandiser Suman was found to have workload of 100
percent and 20 percent in weeks commencing July 21 and July 28 respectively. Post
sub-task distribution resulted in Suman getting workload in two weeks, commencing
Aug 4 and Sept 15 respectively (figure 6.9).
212
Figure 6.9
Res ID
Resource N ame
38A5ILQ
merchandis er - Suman
J ul 21
Alloc ated
38A5ILY
8h
% U sed
128%
40%
20%
Available
-11.2h
24h
32h
merchandis er - Rupa
J ul 21
40h
8h
100%
20%
32h
Aug 4
Aug 11
Aug 18
40h
Aug 25
40h
Aug 25
40h
Sep 1
40h
Sep 1
40h
Sep 8
40h
Sep 8
36.8h
Sep 15
40h
Sep 15
10h
24h
2h
21%
48%
5%
39.6h
J ul 21
26h
J ul 28
50h
Aug 4
50h
Aug 11
Alloc ated
8h
16h
8h
24h
% U sed
16%
32%
16%
48%
42h
J ul 21
34h
J ul 28
42h
Aug 4
26h
Aug 11
50h
Aug 18
50h
Aug 18
50h
Aug 25
50h
Aug 25
50h
Sep 1
50h
Sep 1
50h
Sep 8
50h
Sep 8
47.6h
Sep 15
50h
Sep 15
Alloc ated
32h
16h
24h
24h
8h
% U sed
80%
40%
60%
60%
20%
8h
J ul 21
24h
J ul 28
40h
Aug 4
16h
Aug 11
40h
Aug 18
40h
Aug 25
40h
Sep 1
16h
Sep 8
32h
Sep 15
Alloc ated
2h
16h
8h
16h
2h
% U sed
6%
40%
20%
40%
6%
37.6h
J ul 21
24h
J ul 28
40h
Aug 4
Sep 22
Sep 29
Oc t 6
Oc t 13
32h
Aug 11
24h
Aug 18
40h
Aug 25
40h
Sep 1
40h
Sep 8
37.6h
Sep 15
40h
Sep 22
40h
Sep 22
50h
Sep 22
50h
Sep 22
40h
Sep 22
40h
Sep 22
40h
Sep 29
40h
Sep 29
50h
Sep 29
50h
Sep 29
40h
Sep 29
40h
Sep 29
40h
Oc t 6
40h
Oc t 6
50h
Oc t 6
50h
Oc t 6
40h
Oc t 6
40h
Oc t 6
8h
Oc t 13
8h
Oc t 13
10h
Oc t 13
10h
Oc t 13
8h
Oc t 13
8h
Oc t 13
Alloc ated
24h
40h
16h
8h
% U sed
48%
80%
32%
80%
50h
J ul 21
50h
J ul 28
50h
Aug 4
50h
Aug 11
50h
Aug 18
50h
Aug 25
50h
Sep 1
50h
Sep 8
26h
Sep 15
10h
Sep 22
34h
Sep 29
Alloc ated
8h
40h
32h
% U sed
16%
80%
64%
50h
J ul 21
50h
J ul 28
50h
Aug 4
50h
Aug 11
50h
Aug 18
50h
Aug 25
50h
Sep 1
50h
Sep 8
42h
Sep 15
10h
Sep 22
18h
Sep 29
50h
Oc t 6
50h
Oc t 6
Alloc ated
16h
48h
64h
% U sed
32%
96%
128%
Available
38A5ILX
8h
J ul 28
Sep 15
% U sed
Available
38A5ILW
40h
Sep 8
Alloc ated
Available
38A5ILV
Aug 18
40h
Available
38A5ILU
Aug 11
40h
100%
J ul 21
Sep 1
8%
40h
32h
Aug 25
3h
80%
Available
38A5ILT
Aug 4
Aug 18
% U sed
Available
38A5ILS
J ul 28
Aug 11
Alloc ated
Available
38A5ILZ
Aug 4
16h
Available
38A5ILR
J ul 28
51h
50h
J ul 21
50h
J ul 28
50h
Aug 4
50h
Aug 11
50h
Aug 18
50h
Aug 25
50h
Sep 1
50h
Sep 8
50h
Sep 15
34h
Sep 22
2h
Sep 29
-14h
Oc t 6
Alloc ated
16h
8h
32h
40h
8h
% U sed
40%
20%
80%
100%
20%
24h
32h
Available
40h
40h
40h
40h
40h
40h
40h
8h
32h
2h
Oc t 13
10h
Oc t 13
10h
Oc t 13
8h
The PS8 software has a resource levelling feature which helped in even distribution of
workload against any sharp variations. As per figure 6.9, merchandiser Suman was
over-utilised 128 percent in the week commencing July 21 and the finishing and
packing resource was over utilised 128 percent in the week commencing Oct 6.
Merchandiser Rupa was utilised 100 percent in the weeks commencing Aug 4 and Aug
11, and the finishing and packing resource and quality team utilised 96 percent and 100
percent respectively in the week commencing Sept 29. Any workload close to or
exceeding 100 percent meant overtime of that particular resource or potential delay in
the manufacturing lead time, therefore the resource levelling feature had to be used to
213
distribute the work. Figure 6.10 shows the weekly workload pattern after levelling of
resources, where none of the executive workload exceeded 100 percent. However,
levelling of resources in this particular order resulted in the delivery date of the order
being extended by 4 days, to 17 October 2003.
Figure 6.10
R es ID
R esource N ame
38A5ILQ
merchandis er - Suman
J ul 21
Alloc ated
38A5ILY
8h
% U sed
68%
100%
20%
Av ailable
12.8h
merchandis er - R upa
J ul 21
40h
32h
100%
80%
32h
J ul 28
8h
Aug 4
Sep 8
Sep 15
Aug 11
Aug 18
40h
Aug 25
40h
Aug 25
40h
Sep 1
40h
Sep 1
40h
Sep 8
40h
Sep 8
36.8h
Sep 15
40h
Sep 15
Alloc ated
10h
24h
2h
% U sed
21%
48%
5%
39.6h
J ul 21
26h
J ul 28
50h
Aug 4
50h
Aug 11
50h
Aug 18
Alloc ated
8h
16h
16h
16h
% U sed
16%
32%
32%
32%
42h
J ul 21
34h
J ul 28
50h
Aug 4
34h
Aug 11
34h
Aug 18
50h
Aug 25
50h
Aug 25
50h
Sep 1
50h
Sep 1
50h
Sep 8
50h
Sep 8
47.6h
Sep 15
50h
Sep 15
Alloc ated
32h
16h
24h
24h
8h
% U sed
80%
40%
60%
60%
20%
8h
J ul 21
24h
J ul 28
40h
Aug 4
16h
Aug 11
40h
Aug 18
40h
Aug 25
40h
Sep 1
16h
Sep 8
32h
Sep 15
Alloc ated
2h
16h
24h
2h
% U sed
6%
40%
60%
6%
37.6h
J ul 21
24h
J ul 28
40h
Aug 4
Sep 22
Sep 29
Oc t 6
Oc t 13
40h
Aug 11
16h
Aug 18
40h
Aug 25
40h
Sep 1
40h
Sep 8
37.6h
Sep 15
40h
Sep 22
40h
Sep 22
50h
Sep 22
50h
Sep 22
40h
Sep 22
40h
Sep 22
40h
Sep 29
40h
Sep 29
50h
Sep 29
50h
Sep 29
40h
Sep 29
40h
Sep 29
40h
Oc t 6
40h
Oc t 6
50h
Oc t 6
50h
Oc t 6
40h
Oc t 6
40h
Oc t 6
40h
Oc t 13
40h
Oc t 13
50h
Oc t 13
50h
Oc t 13
40h
Oc t 13
40h
Oc t 13
Alloc ated
24h
40h
16h
8h
% U sed
48%
80%
32%
16%
50h
J ul 21
50h
J ul 28
50h
Aug 4
50h
Aug 11
50h
Aug 18
50h
Aug 25
50h
Sep 1
50h
Sep 8
26h
Sep 15
10h
Sep 22
34h
Sep 29
Alloc ated
8h
40h
32h
% U sed
16%
80%
64%
50h
J ul 21
50h
J ul 28
50h
Aug 4
50h
Aug 11
50h
Aug 18
50h
Aug 25
50h
Sep 1
50h
Sep 8
42h
Sep 15
10h
Sep 22
18h
Sep 29
50h
Oc t 6
50h
Oc t 6
42h
Oc t 13
50h
Oc t 13
Alloc ated
16h
40h
40h
32h
% U sed
32%
80%
80%
64%
Av ailable
38A5ILX
40h
J ul 21
Av ailable
38A5ILW
Aug 18
40h
Av ailable
38A5ILV
Aug 11
40h
100%
Sep 1
8%
40h
8h
Av ailable
38A5ILU
Aug 4
Aug 25
3h
20%
Av ailable
38A5ILT
J ul 28
Aug 18
% U sed
Av ailable
38A5ILS
32h
Aug 11
Alloc ated
Av ailable
38A5ILZ
Aug 4
40h
Av ailable
38A5ILR
J ul 28
27h
50h
J ul 21
50h
J ul 28
50h
Aug 4
50h
Aug 11
50h
Aug 18
50h
Aug 25
50h
Sep 1
50h
Sep 8
50h
Sep 15
34h
Sep 22
10h
Sep 29
10h
Oc t 6
Alloc ated
24h
32h
40h
8h
% U sed
60%
80%
100%
20%
Av ailable
40h
40h
40h
40h
16h
40h
40h
40h
40h
8h
32h
18h
Oc t 13
40h
Table 6.9
Project Name
JDW-HE-060-LILAC
JDW-HE-160-WHITE
El Corte 104-1-SUIT
Finish Date
10/13/03
10/16/03
12/22/03
Schedule
Method
Critical Path
Critical Path
Critical Path
Three orders were selected using purposive sampling so that different lengths of the
manufacturing cycle, staggered delivery and start dates were represented. Generally,
every executive looked after 15 to 20 orders at any given point of time, at varied levels
of progress. For the pilot study, only three projects were selected for integration so that
the complete lifecycle of all projects could be covered. All 10 executives were also
performing tasks for other orders. The longitudinal study tested the reliability and scope
of prioritised task allocation in a multi-order environment and execution of tasks on
time with minimum confusion, minimum intermittent work interruption and ease of
execution.
215
Task Nam e
fit check
1d
patter n m kg
quality check
12
13
14
15
16
2d
2d
27
28
Page [
1d
10/13/03
10/03/03
10/13/03
10/10/03
10/08/03
10/06/03
10/02/03
U nits in Days
A vailable U nits
A ll Tasks
] of [
10
20
30
40
50
6d
41packing
09/25/03
09/23/03
09/19/03
60
10d
40finishing
09/30/03
09/16/03
09/16/03
09/16/03
09/16/03
09/15/03
09/09/03
08/14/03
09/15/03
08/18/03
08/14/03
08/07/03
08/18/03
07/28/03
08/11/03
08/04/03
07/31/03
07/31/03
07/29/03
08/04/03
08/26/03
08/19/03
08/18/03
08/14/03
08/11/03
08/07/03
08/19/03
C ur r ent Task
10d
39quality check
09/17/03
09/16/03
09/16/03
09/16/03
09/16/03
09/10/03
08/15/03
08/12/03
08/12/03
08/12/03
08/05/03
07/29/03
07/29/03
07/22/03
08/05/03
08/01/03
07/30/03
07/30/03
07/22/03
07/22/03
08/20/03
08/15/03
08/14/03
08/12/03
08/08/03
08/07/03
08/07/03
08/06/03
07/30/03
07/29/03
07/24/03
07/22/03
07/30/03
07/21/03
07/21/03
07/21/03
07/21/03
S chedule Finish
A ll R esour ce Histogr am
10d
38sewing
0.4d
0.3d
10d
m er chandiser - B OM check
36
0.3d
37cutting
35
1d
specification check
34
4d
32
18d
31
3d
25d
5d
8d
8d
15d
30
26
5d
22
5d
21
2d
6d
20
10d
19
5d
3d
3d
3d
2d
9d
07/31/03
07/30/03
1d
5d
07/25/03
07/23/03
07/22/03
07/22/03
07/21/03
07/21/03
07/21/03
07/21/03
S chedule S tar t
3d
2d
1d
patter n m kg
0.4d
0.3d
m er chandiser - B OM check
7d
0.3d
1d
D ur ation
Jul
14
28
18
25
S ep
15
22
29
m er chandiser - S um an
m er chandiser - R upa
m er chandiser - R upa
m er chandiser - R upa
m er chandiser - S um an
m er chandiser - S um an
Qtr 3, 2003
A ug
11
m er chandiser - S um an
21
Task #
Figure 6.11
Oct
13
20
27
Qtr 4, 2003
N ov
17
10
24
216
fit check
3d
5d
23
24
27
28
8d
6d
1d
3 7 f inis hing
3 8 pa c k ing
6d
Page [
6d
3 6 qua lit y c he c k
Units in Days
] of [
Available Units
All Tasks
6d
3 5 W a s hing
0.4d
3 4 s e w ing
32
0.3d
0.3d
1d
4d
7d
6d
31
09/08/03
7d
1 0/1 6 /0 3
1 0/0 8 /0 3
1 0/0 2 /0 3
0 9/3 0 /0 3
0 9/2 6 /0 3
0 9/2 4 /0 3
0 9/2 2 /0 3
09/19/03
09/19/03
09/19/03
0 9/1 9 /0 3
09/11/03
09/02/03
08/27/03
0 8/2 7 /0 3
4d
1 5d
08/28/03
08/22/03
0 8/2 2 /0 3
0 8/1 5 /0 3
0 8/2 0 /0 3
08/19/03
08/15/03
0 8/1 5 /0 3
0 9/1 2 /0 3
09/10/03
09/08/03
09/03/03
09/02/03
0 9/0 2 /0 3
0 8/2 6 /0 3
08/22/03
08/19/03
08/15/03
0 8/1 5 /0 3
08/14/03
08/14/03
08/14/03
0 8/1 4 /0 3
S chedule S tar t
7d
7d
3 3 c ut t ing
specification check
30
2 9 PP me e t ing a n d re ady t o c ut
26
22
1 5d
2 0 a c c e s s ories appr ov a l
5d
1d
2d
2d
1 9 f a bric a pp rova l
1 6 f a bric s ou rc in g
1 5 s iz e s e t ap prov a l
18
5d
14
17
2d
quality check
13
3d
3d
patter n m kg
12
8d
5d
2d
3d
3d
7d
0.4d
11
1 0 s iz e s e t mak e
patter n m kg
5 f it s a mple ma ke
0.3d
1d
0.3d
Dur ation
Task Nam e
10
20
30
40
50
60
1 0 /1 6 /0 3
1 0 /1 5 /0 3
1 0 /1 3 /0 3
1 0 /0 7 /0 3
1 0 /0 3 /0 3
1 0 /0 1 /0 3
0 9 /2 9 /0 3
09/19/03
09/19/03
09/19/03
0 9 /1 9 /0 3
09/16/03
09/10/03
09/04/03
0 9 /1 6 /0 3
09/11/03
09/05/03
09/01/03
0 9 /1 1 /0 3
0 8 /2 1 /0 3
0 8 /2 6 /0 3
08/19/03
08/18/03
0 8 /1 9 /0 3
0 9 /1 8 /0 3
09/11/03
09/09/03
09/05/03
09/04/03
0 9 /1 1 /0 3
0 9 /0 1 /0 3
08/25/03
08/21/03
08/19/03
0 8 /2 5 /0 3
08/14/03
08/14/03
08/14/03
0 8 /1 4 /0 3
S chedule Finish
4
18
25
m er chandiser - S um an
S ep
15
22
29
m er chandiser - Rupa
m er chandiser - S um an
m er chandiser - Rupa
m er chandiser - S um an
Qtr 3, 2003
Aug
11
Oct
13
20
Q ua lit y t e a m ( R a je s h + 2 Q C
Task #
Figure 6.12
27
10
Qtr 4, 2003
Nov
17
24
217
Task Nam e
fit check
3d
quality check
13
14
2d
25
26
29
30
Page [
12/24/03
12/16/03
12/24/03
12/23/03
U nits in Days
A vailable U nits
A ll Tasks
] of [
10
20
30
40
50
1d
12/19/03
12/17/03
12/09/03
60
6d
41packing
12/08/03
12/04/03
11/25/03
11/21/03
11/13/03
11/13/03
11/13/03
11/13/03
11/12/03
11/06/03
10/13/03
11/12/03
09/29/03
09/22/03
10/02/03
10/02/03
09/22/03
10/08/03
10/01/03
09/29/03
09/25/03
09/23/03
10/01/03
10/20/03
10/13/03
10/09/03
10/07/03
10/06/03
10/13/03
10/01/03
09/24/03
09/22/03
09/18/03
09/24/03
09/15/03
09/15/03
09/15/03
09/15/03
S chedule Finish
C ur r ent Task
10d
40finishing
12/04/03
12/02/03
11/21/03
11/18/03
11/14/03
11/13/03
11/13/03
11/13/03
11/13/03
11/07/03
10/14/03
10/09/03
10/09/03
09/23/03
09/22/03
09/23/03
09/22/03
09/16/03
10/02/03
09/30/03
09/26/03
09/24/03
09/16/03
09/16/03
10/14/03
10/10/03
10/08/03
10/03/03
10/02/03
10/02/03
09/25/03
09/23/03
09/18/03
09/16/03
09/16/03
09/15/03
09/15/03
09/15/03
09/15/03
S chedule S tar t
A ll R esour ce Histogr am
10d
6d
10d
39quality check
38Washing
6d
0.4d
0.3d
36sewing
m er chandiser - B OM check
34
6d
33
0.3d
1d
4d
18d
3d
25d
5d
35cutting
specification check
32
28
8d
24
0d
8d
5d
20
2d
2d
6d
5d
19
18
17
5d
12d
2d
2d
3d
8d
patter n m aking
12
5d
2d
11
3d
3d
7d
0.4d
0.3d
patter n m aking
m er chandiser - B OM check
0.3d
1d
D ur ation
Qtr 3, 2003
22
29
20
27
m er chandiser - S um an
Qtr 4, 2003
N ov
17
10
24
m er chandiser - S um an
m er chandiser - R upa
m er chandiser - R upa
Oct
13
m er chandiser - S um an
S ep
15
Task #
Figure 6.13
D ec
15
29
22
12
Jan
19
26
218
Development of the combined Gantt chart was achieved in the PS8 using a function
called multi-project synchronisation feature. Before synchronisation, the following
parameters were set.
In the multi-project set up, order JDW-HE-160-WHITE was given top priority,
followed by order JDW-HE-060-LILAC. El Corte 104-1-SUIT was given lowest
priority.
Schedule method was set as critical path and schedule direction was set as
forward.
Give priority to critical tasks and extend non-critical-path task durations within the
available float, if necessary.
Weekly meeting with all executive members to jointly discuss the progress of the
three orders in combination.
In the multi-project Gantt chart, the project could be given any individual name. El
Corte 104-1-SUIT was used to name Gantt charts while JDW-HE-160-WHITE was
used for the reports generated.
219
Tas k Na m e
m e r c ha ndi s er - BO M
f i t c he ck
c onf or m i t y
qua l i t y c he ck
15
16
6d
2d
2d
2d
5d
4d
1d
0. 3d
pr oduct i on -
m e r c ha ndi s er - BO M
f i t c he ck
2d
2d
c ut
qua l i t y c he ck
12
13
14
3d
2d
16 f abr i c sour ci ng
s our c i ng sa m pl e f abr i c o
f i nal i s i ng f a br i c opt i on
17
18
5d
5d
a cc .
24
pr oduct i on -
m e r c ha ndi s er - BO M
c ut
f i t c he ck
qua l i t y c he ck
13
14
2d
f i nal i s i ng f a br i c opt i on
8d
8d
0d
5d
c om m uni ca t i on & f ol l ow
a cc es sor i es r ec ei v e and t
24
25
26
f abr i c m ak e & di s pa t c h
f abr i c r e ce i v e and t es t i
29
30
0. 3d
6d
0d
0d
0d
6d
1d
0d
0d
10d
10d
41packi ng
40 f i ni shi ng
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
39qual i t y check
38W ashi ng
10d
6d
36sew i ng
6d
35cut t i ng
0. 4d
0. 3d
pr oduct i on f e as i bi l i t y c h
m e r c ha ndi s er - BO M
che
s pe ci f i ca t i on c he c k
33
1d
4d
1 8d
3d
34
32
c om m uni ca t i on & f ol l ow
28
25d
5d
5d
2d
2d
c om pat i bi l i t y che ck - r e
6d
c om pat i bi l i t y che ck - pa
s our c i ng sa m pl ei ng f a br i
19
20
18
12d
16 f abr i c sour ci ng
17
5d
2d
2d
3d
3d
8d
5d
a nd s ew
pat t e r n m a ki ng
c ut
11
12
2d
3d
3d
a nd s ew
7d
pat t e r n m a ki ng
0. 4d
0. 3d
0. 3d
5 f i t sam pl e m ake
che
f e as i bi l i t y
s am pl e - f ea si bi l i t y che
1d
1d
1 or der conf i r m at i on
6d
6d
8d
38packi ng
6d
35W ashi ng
36qual i t y check
6d
34sew i ng
37 f i ni shi ng
6d
33cut t i ng
0. 4d
0. 3d
0d
0d
che
0. 3d
4d
m e r c ha ndi s er - BO M
32
1d
pr oduct i on -
31
f e as i bi l i t y
s pe ci f i ca t i on c he c k
30
r ec ei ve & t e st i n
f abr i c
28
0d
7d
0d
0d
0d
0d
0d
0d
0d
0d
0d
f abr i c m ak e and di s pa t c
27
15d
4d
7d
7d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
7d
c om m uni ca t i on & f ol l ow
26
r e ce i v e & t e s t i ng ok
sour c e
a cc .
23
m ak e /
c om m uni ca t i on & f ol l ow
22
15d
1d
5d
3d
3d
pat t e r n m k g
11
a nd s ew
8d
5d
2d
3d
3d
a nd s ew
pat t e r n m k g
c ut
7d
0. 4d
0. 3d
0. 3d
5 f i t sam pl e m ake
che
f e as i bi l i t y
s am pl e - f ea si bi l i t y che
1d
0d
6d
1d
0d
0d
10d
40 f i ni shi ng
0d
1 or der conf i r m at i on
10d
39qual i t y check
0d
41packi ng
10d
38sew i ng
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
0d
10d
0. 4d
0. 3d
37cut t i ng
che
f e as i bi l i t y
m e r c ha ndi s er - BO M
36
f abr i c r e ce i v e & t es t i ng
s pe ci f i ca t i on c he c k
pr oduct i on -
34
35
32
1 8d
f abr i c m ak e and di s pa t c
31
3d
25d
c om m uni ca t i on & f ol l ow
30
8d
8d
a cc .
28
r e ce i v e & t e s t i ng ok
c om m uni ca t i on & f ol l ow
a cc es sor i es m a ke sour ce
26
27
15d
5d
f i nal i s i ng f a br i c opt i on
c om pat i bi l i t y che ck - r e
22
5d
s our c i ng sa m pl e f abr i c o
c om pat i bi l i t y che ck - pa t
21
19
10d
18 f abr i c sour ci ng
20
5d
3d
3d
3d
a nd s ew
2d
1d
c ut
14
c onf or m i t y
pat t e r n m k g
m a t e r i al
12
9d
13
5d
1d
3d
2d
7d
1d
c ut
a nd s ew
m a t e r i al
pa t t er n m kg
5 f i t sam pl e m ake
0. 4d
0. 3d
che
f e as i bi l i t y
pr oduct i on -
1d
0. 3d
12/ 24/ 03
12/ 16/ 03
12/ 08/ 03
12/ 04/ 03
12/ 02/ 03
11/ 21/ 03
11/ 18/ 03
11/ 14/ 03
1 1/ 13 / 0 3
1 1/ 13 / 0 3
1 1/ 13 / 0 3
11/ 13/ 03
1 1/ 07 / 0 3
1 0/ 14 / 0 3
1 0/ 09 / 0 3
10/ 09/ 03
0 9/ 23 / 0 3
0 9/ 22 / 0 3
0 9/ 23 / 0 3
09/ 22/ 03
09/ 16/ 03
10/ 02/ 03
0 9/ 30 / 0 3
0 9/ 26 / 0 3
0 9/ 24 / 0 3
0 9/ 16 / 0 3
09/ 16/ 03
10/ 14/ 03
1 0/ 10 / 0 3
1 0/ 08 / 0 3
1 0/ 03 / 0 3
1 0/ 02 / 0 3
10/ 02/ 03
09/ 25/ 03
0 9/ 23 / 0 3
0 9/ 18 / 0 3
0 9/ 16 / 0 3
09/ 16/ 03
0 9/ 15 / 0 3
0 9/ 15 / 0 3
0 9/ 15 / 0 3
09/ 15/ 03
10/ 16/ 03
10/ 08/ 03
10/ 02/ 03
09/ 30/ 03
09/ 26/ 03
09/ 24/ 03
09/ 22/ 03
0 9/ 19 / 0 3
0 9/ 19 / 0 3
0 9/ 19 / 0 3
09/ 19/ 03
0 9/ 11 / 0 3
0 9/ 02 / 0 3
0 8/ 27 / 0 3
08/ 27/ 03
0 9/ 08 / 0 3
0 8/ 28 / 0 3
0 8/ 22 / 0 3
08/ 22/ 03
08/ 15/ 03
08/ 20/ 03
0 8/ 19 / 0 3
0 8/ 15 / 0 3
08/ 15/ 03
09/ 12/ 03
0 9/ 10 / 0 3
0 9/ 08 / 0 3
0 9/ 03 / 0 3
0 9/ 02 / 0 3
09/ 02/ 03
08/ 26/ 03
0 8/ 22 / 0 3
0 8/ 19 / 0 3
0 8/ 15 / 0 3
08/ 15/ 03
0 8/ 14 / 0 3
0 8/ 14 / 0 3
0 8/ 14 / 0 3
08/ 14/ 03
10/ 13/ 03
10/ 03/ 03
09/ 25/ 03
09/ 23/ 03
09/ 19/ 03
09/ 17/ 03
0 9/ 16 / 0 3
0 9/ 16 / 0 3
0 9/ 16 / 0 3
09/ 16/ 03
0 9/ 10 / 0 3
0 8/ 15 / 0 3
0 8/ 12 / 0 3
08/ 12/ 03
0 8/ 12 / 0 3
0 8/ 05 / 0 3
0 7/ 29 / 0 3
07/ 29/ 03
07/ 22/ 03
08/ 05/ 03
0 8/ 01 / 0 3
0 7/ 30 / 0 3
0 7/ 30 / 0 3
0 7/ 22 / 0 3
07/ 22/ 03
08/ 20/ 03
0 8/ 15 / 0 3
0 8/ 14 / 0 3
0 8/ 12 / 0 3
0 8/ 08 / 0 3
0 8/ 07 / 0 3
08/ 07/ 03
07/ 31/ 03
0 7/ 30 / 0 3
0 7/ 25 / 0 3
0 7/ 23 / 0 3
0 7/ 22 / 0 3
07/ 22/ 03
0 7/ 21 / 0 3
0 7/ 21 / 0 3
0 7/ 21 / 0 3
07/ 21/ 03
12/ 24/ 03
12/ 23/ 03
12/ 19/ 03
12/ 17/ 03
12/ 09/ 03
12/ 04/ 03
11/ 25/ 03
11/ 21/ 03
1 1/ 13 / 0 3
1 1/ 13 / 0 3
1 1/ 13 / 0 3
11/ 13/ 03
1 1/ 12 / 0 3
1 1/ 06 / 0 3
1 0/ 13 / 0 3
11/ 12/ 03
0 9/ 29 / 0 3
0 9/ 22 / 0 3
1 0/ 02 / 0 3
10/ 02/ 03
09/ 22/ 03
10/ 08/ 03
1 0/ 01 / 0 3
0 9/ 29 / 0 3
0 9/ 25 / 0 3
0 9/ 23 / 0 3
10/ 01/ 03
10/ 20/ 03
1 0/ 13 / 0 3
1 0/ 09 / 0 3
1 0/ 07 / 0 3
1 0/ 06 / 0 3
10/ 13/ 03
10/ 01/ 03
0 9/ 24 / 0 3
0 9/ 22 / 0 3
0 9/ 18 / 0 3
09/ 24/ 03
0 9/ 15 / 0 3
0 9/ 15 / 0 3
0 9/ 15 / 0 3
09/ 15/ 03
10/ 16/ 03
10/ 15/ 03
10/ 13/ 03
10/ 07/ 03
10/ 03/ 03
10/ 01/ 03
09/ 29/ 03
0 9/ 19 / 0 3
0 9/ 19 / 0 3
0 9/ 19 / 0 3
09/ 19/ 03
0 9/ 16 / 0 3
0 9/ 10 / 0 3
0 9/ 04 / 0 3
09/ 16/ 03
0 9/ 11 / 0 3
0 9/ 05 / 0 3
0 9/ 01 / 0 3
09/ 11/ 03
08/ 21/ 03
08/ 26/ 03
0 8/ 19 / 0 3
0 8/ 18 / 0 3
08/ 19/ 03
09/ 18/ 03
0 9/ 11 / 0 3
0 9/ 09 / 0 3
0 9/ 05 / 0 3
0 9/ 04 / 0 3
09/ 11/ 03
09/ 01/ 03
0 8/ 25 / 0 3
0 8/ 21 / 0 3
0 8/ 19 / 0 3
08/ 25/ 03
0 8/ 14 / 0 3
0 8/ 14 / 0 3
0 8/ 14 / 0 3
08/ 14/ 03
10/ 13/ 03
10/ 10/ 03
10/ 08/ 03
10/ 06/ 03
10/ 02/ 03
09/ 30/ 03
0 9/ 16 / 0 3
0 9/ 16 / 0 3
0 9/ 16 / 0 3
09/ 16/ 03
0 9/ 15 / 0 3
0 9/ 09 / 0 3
0 8/ 14 / 0 3
09/ 15/ 03
0 8/ 18 / 0 3
0 8/ 14 / 0 3
0 8/ 07 / 0 3
08/ 18/ 03
07/ 28/ 03
08/ 11/ 03
0 8/ 04 / 0 3
0 7/ 31 / 0 3
0 7/ 31 / 0 3
0 7/ 29 / 0 3
08/ 04/ 03
08/ 26/ 03
0 8/ 19 / 0 3
0 8/ 18 / 0 3
0 8/ 14 / 0 3
0 8/ 11 / 0 3
0 8/ 07 / 0 3
08/ 19/ 03
08/ 06/ 03
0 7/ 30 / 0 3
0 7/ 29 / 0 3
0 7/ 24 / 0 3
0 7/ 22 / 0 3
07/ 30/ 03
0 7/ 21 / 0 3
0 7/ 21 / 0 3
0 7/ 21 / 0 3
07/ 21/ 03
J ul
14
28
m e r c ha ndi s er -
f abr i c ex ec ut i v e -
( Ra j e sh
25
m e r c ha ndi s er - Su
f abr i c ex ec ut i v e -
m e r c ha ndi s er - Su
( Ra j e sh
( Anbu + 2
29
O ct
m e r c ha ndi s er -
( Ra j e sh
( Anbu + 2
20
f abr i c ex ec ut i v e -
pr oduct i on ex ec ut i ve -
Q ual i t y t e am
s am pl i ng t ea m
Sam pl e m a st er -
m e r c ha ndi s er - Su
m e r c ha ndi s er -
13
pr oduct i on ex ec ut i ve - S
Sam pl e m a st er -
f abr i c ex ec ut i v e -
Sam pl e m a st er -
s am pl i ng t ea m
Sam pl e m a st er -
m e r c ha ndi s er - Su
pr oduct i on ex ec ut i ve -
Sam pl e m a st er -
m e r c ha ndi s er - Su
pr oduct i on ex ec ut i ve -
Sam pl e m a st er -
f abr i c ex ec ut i v e -
m e r c ha ndi s er - R
pr oduct i on ex ec ut i ve -
f abr i c ex ec ut i v e -
22
pr oduct i on ex ec ut i ve - S
Sam pl e m a st er -
f abr i c ex ec ut i v e -
15
( Anbu + 2
Sep
Q ual i t y t e am
s am pl i ng t ea m
Sam pl e m a st er -
m e r c ha ndi s er -
( Anbu + 2
Sam pl e m a st er -
s am pl i ng t ea m
Sam pl e m a st er -
m e r c ha ndi s er - Su
pr oduct i on ex ec ut i ve - S
pr oduct i on ex ec ut i ve -
Q ual i t y t e am
Sam pl e m a st er -
m e r c ha ndi s er -
m e r c ha ndi s er - Su
pr oduct i on ex ec ut i ve -
Sam pl e m a st er -
f abr i c ex ec ut i v e -
18
s am pl i ng t ea m ( Anbu + 2
m e r c ha ndi s er - R
( Anbu + 2
Q t r 3 , 20 03
Aug
11
s am pl i ng t ea m
( Anbu + 2
Sam pl e m a st er -
s am pl i ng t ea m
m e r c ha ndi s er - Su
Sam pl e m a st er -
m e r c ha ndi s er - Su
pr oduct i on ex ec ut i ve -
Sam pl e m a st er -
21
s am pl e - f ea si bi l i t y che
1 or der conf i r m at i on
Tas k #
Figure 6.14
27
10
17
m e r c ha ndi s er - Su
pr oduct i on ex ec ut i ve - S
Sam pl e m a st er -
f abr i c ex ec ut i v e -
Q t r 4 , 20 03
Nov
24
Dec
15
22
29
12
J an
19
26
220
R esour ce Nam e
merchandiser - S uman
merchandiser - R upa
38A 5ILQ
38A 5ILY
38A 5ILR
38A 5ILZ
38A 5ILS
38A 5ILT
38A 5ILU
38A 5ILV
38A 5ILW
38A 5ILX
-11.2h
A vailable
32h
20%
40h
24h
40h
A ug 18
40%
40h
A ug 11
% Used
A ug 4
A vailable
Jul 28
8h
Jul 21
16h
A llocated
40h
A ug 25
50h
40h
S ep 1
50h
24h
40%
16h
S ep 8
50h
S ep 8
40h
S ep 15
50h
S ep 15
S ep 22
S ep 29
8h
80%
32h
S ep 22
-32h
180%
72h
S ep 29
-14h
64h
50h
S ep 1
128%
50h
A ug 25
-6h
16h
50h
A ug 18
56h
112%
34h
50h
A ug 11
-14h
32%
50h
A ug 4
50h
26h
S ep 29
% Used
Jul 28
50h
-30h
S ep 22
48%
24h
S ep 29
32h
20%
8h
S ep 29
40h
S ep 29
42h
16%
8h
S ep 29
34h
32%
16h
S ep 29
100%
40h
S ep 29
24h
40%
16h
S ep 29
A vailable
A llocated
Jul 21
50h
S ep 15
64h
50h
50h
S ep 8
128%
50h
50h
S ep 1
8h
50h
50h
A ug 25
42h
50h
50h
A ug 18
160%
80h
S ep 22
16%
50h
A ug 11
50h
S ep 15
32h
20%
8h
S ep 22
24h
40%
16h
S ep 22
42h
16%
8h
S ep 22
18h
64%
32h
S ep 22
% Used
A ug 4
50h
S ep 8
32.8h
18%
7h
S ep 15
-16h
140%
56h
S ep 15
34h
32%
16h
S ep 15
18.8h
62%
31h
S ep 15
-24h
160%
64h
S ep 22
32h
20%
8h
S ep 22
A vailable
A llocated
Jul 28
50h
S ep 1
24h
40%
16h
S ep 8
100%
40h
S ep 8
50h
S ep 8
50h
S ep 8
40h
S ep 15
-1.6h
104%
42h
S ep 15
26h
Jul 21
50h
A ug 25
40h
S ep 1
8h
80%
32h
S ep 1
26h
48%
24h
S ep 1
26h
48%
24h
S ep 1
8h
80%
32h
S ep 8
40h
S ep 8
A vailable
A ug 18
40h
A ug 25
16h
60%
24h
A ug 25
50h
A ug 25
42h
16%
8h
A ug 25
32h
20%
8h
S ep 1
40h
S ep 1
24h
A ug 11
24h
40%
16h
A ug 18
32h
20%
8h
A ug 18
26h
48%
24h
A ug 18
26h
48%
24h
A ug 18
100%
40h
A ug 25
40h
A ug 25
48%
A ug 4
29.6h
26%
10h
A ug 11
8h
80%
32h
A ug 11
26h
48%
24h
A ug 11
39.6h
21%
10h
A ug 11
24h
40%
16h
A ug 18
100%
40h
A ug 18
% Used
Jul 28
40h
A ug 4
40h
A ug 4
42h
16%
8h
A ug 4
50h
A ug 4
100%
40h
A ug 11
28.8h
28%
11h
A ug 11
A llocated
Jul 21
16h
24h
40%
2h
6%
37.6h
% Used
Jul 28
A vailable
A llocated
Jul 21
16h
8h
24h
40%
32h
80%
% Used
Jul 28
A vailable
A llocated
Jul 21
42h
34h
32%
16%
% Used
A vailable
Jul 28
16h
Jul 21
8h
A llocated
48%
21%
39.6h
% Used
A vailable
26h
24h
Jul 28
10h
Jul 21
8h
A llocated
100%
80%
40h
% Used
A vailable
A ug 4
32h
20%
8h
A ug 4
40h
Jul 28
24h
40%
16h
Jul 28
32h
Jul 21
% Used
A llocated
51h
128%
A llocated
Jul 21
R es ID
Figure 6.15
8h
8h
100%
40h
Oct 6
-78h
256%
128h
Oct 6
50h
Oct 6
50h
Oct 6
32h
20%
Oct 6
24h
40%
16h
Oct 6
34h
32%
16h
Oct 6
42h
16%
Oct 6
40h
Oct 6
40h
Oct 6
40h
Oct 13
18h
64%
32h
Oct 13
50h
Oct 13
42h
16%
8h
Oct 13
24h
40%
16h
Oct 13
32h
20%
8h
Oct 13
50h
Oct 13
50h
Oct 13
40h
Oct 13
40h
Oct 13
40h
Oct 20
50h
Oct 20
50h
Oct 20
50h
Oct 20
40h
Oct 20
40h
Oct 20
50h
Oct 20
50h
Oct 20
40h
Oct 20
40h
Oct 20
40h
Oct 27
50h
Oct 27
50h
Oct 27
50h
Oct 27
40h
Oct 27
40h
Oct 27
50h
Oct 27
50h
Oct 27
40h
Oct 27
40h
Oct 27
40h
N ov 3
50h
N ov 3
50h
N ov 3
50h
N ov 3
40h
N ov 3
32h
20%
8h
N ov 3
50h
N ov 3
50h
N ov 3
40h
N ov 3
40h
N ov 3
40h
N ov 10
50h
N ov 10
50h
N ov 10
42h
16%
8h
N ov 10
37.6h
6%
2h
N ov 10
16h
60%
24h
N ov 10
50h
N ov 10
47.6h
5%
2h
N ov 10
40h
N ov 10
36.8h
8%
3h
N ov 10
40h
N ov 17
50h
N ov 17
18h
64%
32h
N ov 17
10h
80%
40h
N ov 17
40h
N ov 17
40h
N ov 17
50h
N ov 17
50h
N ov 17
40h
N ov 17
40h
N ov 17
40h
N ov 24
50h
N ov 24
34h
32%
16h
N ov 24
50h
N ov 24
40h
N ov 24
40h
N ov 24
50h
N ov 24
50h
N ov 24
40h
N ov 24
40h
N ov 24
24h
40%
16h
D ec 1
50h
D ec 1
50h
D ec 1
50h
D ec 1
40h
D ec 1
40h
D ec 1
50h
D ec 1
50h
D ec 1
40h
D ec 1
40h
D ec 1
100%
40h
D ec 8
10h
80%
40h
D ec 8
50h
D ec 8
50h
D ec 8
40h
D ec 8
40h
D ec 8
50h
D ec 8
50h
D ec 8
40h
D ec 8
40h
D ec 8
16h
60%
24h
D ec 15
-22h
144%
72h
D ec 15
50h
D ec 15
50h
D ec 15
40h
D ec 15
40h
D ec 15
50h
D ec 15
50h
D ec 15
40h
D ec 15
40h
D ec 15
24h
D ec 22
14h
53%
16h
D ec 22
30h
D ec 22
30h
D ec 22
16h
33%
8h
D ec 22
24h
D ec 22
30h
D ec 22
30h
D ec 22
24h
D ec 22
24h
D ec 22
221
A weekly resource utilisation chart was found to be very useful for a manager and/or
planner. The total workload for every executive for every week was indicated for the
duration of the manufacturing cycle. Out of the total duty hours for each executive how
much time was allocated for tasks and how much was free is clearly indicated, thus helping
monitoring and rationalising changes of plan, if any. Workload exceeding 100 percent
indicated a shortage of resources and a solution was required, by either working overtime
or re-scheduling target dates.
The software generated Resource Assignments Reports (figure 6.16) informs all executives
of the tasks being allocated to them, the time allocated for each task, scheduled start and
finish date and the name of the project (order) the task belonged to.
Figure 6.16
Res # Res ID
Resource Name
1 38A5ILQ
Project ID
Email Address
Current Availability
merchandiser - Suman
Project Name
8h/d
Task #
Task Name
Base
Total
Actual
Remaining
Start
Finish
2IDVLC1
JDW-HE-060-Lilac
0h
3.2h
0h
3.2h
07/21/03
07/21/03
2IDVLC1
JDW-HE-060-Lilac
material conformity
0h
16h
0h
16h
07/23/03
07/24/03
2IDVLC1
JDW-HE-060-Lilac
22
2IDVLC1
JDW-HE-060-Lilac
24 accessories approval
2IDVLC1
JDW-HE-060-Lilac
36
2IDVLC1
JDW-HE-060-White
2IDVLC1
JDW-HE-060-White
18
2IDVLC1
JDW-HE-060-White
20 accessories approval
2IDVLC1
JDW-HE-060-White
32
2IDVLC1
2IDVLC1
20
2IDVLC1
22 accessories approval
2IDVLC1
34
0h
Page [
] of [
0h
16h
0h
16h
08/01/03
08/04/03
0h
40h
0h
40h
07/22/03
07/28/03
0h
3.2h
0h
3.2h
09/16/03
09/16/03
0h
3.2h
0h
3.2h
08/14/03
08/14/03
0h
8h
0h
8h
08/19/03
08/19/03
0h
40h
0h
40h
08/15/03
08/21/03
0h
3.2h
0h
3.2h
09/19/03
09/19/03
0h
3.2h
0h
3.2h
09/15/03
09/15/03
0h
16h
0h
16h
09/30/03
10/01/03
0h
40h
0h
40h
09/16/03
09/22/03
3.2h
0h
3.2h
11/13/03
11/13/03
10 ]
The software generated To Do List (also referred to as Upcoming task by resources in the
software) for every executive could be made for any customised date range. The To Do List
(figure 6.17) listed tasks for a given close ended time period or before/after any specific
222
date. The To Do List also listed incomplete tasks, their project names, scheduled start dates,
duration of task, and predecessor reference.
Figure 6.17
To Do List
Project Name: JDW-HE-060-White
To Do List
me
For Resource:
merchandiser - Suman
Project Name
E-mail:
Manager:
me
Task Name
Schedule Start
Duration
Safe Duration
On CC
Predecessor(s) #
JDW-HE-060-Lilac
07/21/03
0.4d
0d
No
JDW-HE-060-Lilac
material conformity
07/23/03
2d
0d
No
JDW-HE-060-Lilac
08/01/03
2d
0d
No
21
JDW-HE-060-Lilac
accessories approval
07/22/03
5d
0d
No
JDW-HE-060-Lilac
09/16/03
0.4d
0d
No
35
JDW-HE-060-White
08/14/03
0.4d
0d
No
JDW-HE-060-White
08/19/03
1d
0d
No
17
JDW-HE-060-White
accessories approval
08/15/03
5d
0d
No
JDW-HE-060-White
09/19/03
0.4d
0d
No
31
09/15/03
0.4d
0d
No
09/30/03
2d
0d
No
19
accessories approval
09/16/03
5d
0d
No
11/13/03
0.4d
0d
No
33
Duration
Safe Duration
On CC
Predecessor(s) #
12
me Uncompleted Task
me
me
me
For Resource:
merchandiser - Rupa
Project Name
E-mail:
Task Name
Schedule Start
Manager:
me
1
me Uncompleted Task
JDW-HE-060-Lilac
material conformity
08/08/03
2d
0d
No
JDW-HE-060-Lilac
07/29/03
8d
0d
No
JDW-HE-060-Lilac
08/12/03
5d
0d
No
JDW-HE-060-White
08/22/03
7d
0d
No
JDW-HE-060-White
09/08/03
4d
0d
No
09/23/03
8d
0d
No
09/23/03
5d
0d
No
Page [
] of [
27 FF 2d
23
The software generated a task-wise multi-project workload report (Resource project task
effort-weekly) (figure 6.18) for the resource executive on a weekly basis. The distribution
of workload by project and then by task helped executives to assess their own workload by
type of task.
223
Figure 6.18
R es #
R esour ce Nam e
merchandiser - S uman
2IDV LC1
1
4
5
7
18
22
JD W -H E -060-Lilac
order confirmation
Jul 21
Jul 28
A ug 4
51h
16h
8h
A ug 11
A ug 18
A ug 25
S ep 1
S ep 8
S ep 15
merchandiser - B OM check
fabric sourcing
finalising fabric option
8h
8h
8h
3h
36
merchandiser - B OM check
3h
18
32h
8h
33
16
JD W -H E -060-W hite
11h
40h
fabric sourcing
8h
3h
32
merchandiser - B OM check
3h
8h
32h
35h
order confirmation
3h
3h
merchandiser - B OM check
3h
fabric sourcing
16h
16h
22
accessories approval
31
3h
34
merchandiser - B OM check
3h
32h
R esour ce Totals:
Page [
N ov 17
8h
20
16h
N ov 10
3h
29
16
8h
N ov 3
3h
accessories approval
Oct 27
3h
merchandiser - B OM check
20
Oct 20
8h
order confirmation
2IDV LC1
Oct 13
16h
accessories approval
Oct 6
16h
material conformity
24
S ep 29
3h
2IDV LC1
S ep 22
3h
3h
51h
] of [
16h
8h
11h
40h
42h
8h
8h
16h
3h
, 10 ]
During project execution, another feature of PS8 was found to be particularly helpful for
apparel manufacturing operations. PS8's grouping feature extended the capabilities of the
subproject and merged options. Grouping in apparel business helped to maintain separate
order files for different orders of a group while still being able to define dependencies
between the orders. Often different colours were ordered for one style; while tasks like fit
sample approval and size set were common amongst them, lab dip, fabric source, cut, make
and finish were separate for every colour. Separate subprojects could be created for
different colours. The elements of the subproject present in the master project are its
duration, percentage complete and an optional selection of resource assignment
information. The subproject feature in PS8 satisfied this requirement. However this feature
could not be analysed as the three orders selected were not set up with subproject features.
224
The analysis of workload distribution pattern across the manufacturing cycle revealed an
interesting fact. It was found that there was generally more workload at the beginning and
tail end of the manufacturing cycle, whereas in the middle section there was less workload.
JDW-HE-060-LILAC order had a 13 week cycle and during weeks 6 and 7 (starting 25
Aug and 1 Sept respectively) there was zero workload (histogram in figure 6.11). In JDWHE-060-WHITE order also, week 6 (15 Sept) of a total of 10 weeks manufacturing cycle
had least workload (histogram in figure 6.12). Similarly, in the El Corte 104-1-SUIT order,
weeks 7 and 8 (Oct 20 and Oct 27 respectively) in a 15 week cycle had zero workload
(histogram in figure 6.13). This lull of activities in the middle of the cycle could probably
be attributed to the period during the last leg of pre-production activities, when tasks were
completed by in-house executives and they were awaiting decision/execution from buyers
and/or suppliers, though it was widely believed that orders with staggered delivery date
would lead to evening out of workload across an organisation. Even in the multi-project
combined Gantt chart, weeks 14 and 15 were found to have zero workload out of total
cycle time of 23 weeks. The red colour pictorial representation of critical activities in Gantt
chart helped executives to understand and appreciate individual responsibilities. As the
names of resource persons could be written in the Gantt chart, it was very clear among
organisation executives to pictorially understand what their predecessors achieved and
why, the importance of their own task and what to leave for their successor.
All executives felt thoroughly guided using resource assignments reports as every sub-task
level was listed. The executives used same as a checklist during the six month period.
The executive used the To Do List report to the maximum for their daily schedule. All ten
executives expressed that this To Do List was very handy for two reasons: first,
predecessor reference often helped them to fetch the task from the concerned executive,
thus prompting a relay race like situation. Second, every task in the To Do List indicated
whether that task was part of critical path/critical chain or not, helping them to prioritise
their work. The to-do list generated by the software for every individual resource gave
them a clear priority of work to be done as per schedule. All executives felt that the multi225
project To Do List made it easier for them to understand reports about the ongoing tasks for
immediate follow up.
If any particular type of task was repeated for multiple orders, grouping by task type helped
an executive to learn from mistakes as well as implement new lessons easily. Some of the
executives felt that task wise multi project workload report helped them see their workload
in future weeks, thus enabling them to plan better (specially for taking short breaks without
disturbing the schedule).
The resource levelling option of the software enabled an executive to decide to either work
overtime or reschedule the time line in advance. 8 out of 10 resource executives felt in
favour of levelling of resources, even if it resulted in delay of an activity. The executives
felt that working with 100 percent or more workload mean invariably working late hours
(for desk job) or overtime (for skill-based tasks). In other words, it implied higher stress
levels and/or inconsistent quality level. The executives felt levelled resources offered a destressed work environment resulting in high quality output. However, two sets of resources,
the sampling team and finishing and packing executives felt otherwise. They felt peaks and
troughs in workload were welcome as this helped them to work flexi-time and
simultaneously earn extra money working overtime. Incidentally, both these resources were
skill-based and entitled to overtime.
Every executive felt that the software enabled multi-project schedule nearly eliminated
intermittent work interruption and planned their schedule better. However, during the
actual execution of the three projects every executives actual work load schedule could not
be compared against that of the software generated schedule as they were also attending to
tasks from orders other than the three in the multi-project Gantt chart, rendering
segregation of the workload impossible.
Every executive felt the software enabled multi-project schedule nearly eliminated
intermittent work interruption so that they could plan their schedule better. However,
during the actual execution of the three projects every executives actual work load
schedule could not be compared against that of software generated schedule as they were
226
also attending tasks from orders other than the three orders in the multi-project Gantt chart.
It was therefore impossible to segregate the workload.
6.3.4 Conclusion
The software generated multi-project weekly workload schedule for executives coupled
with the relay race approach helped every executive to anticipate workload in advance and
share resources between different orders better. It was realised that multi-order resource
workload was more realistic than individual workload for separate orders. The multiproject Gantt chart implementation clearly addressed several human resource bottleneck
issues in pre-production processes.
Seeking last minute extension of delivery date by apparel manufacturers was a common
problem. The multi-order workload plan enables pre-emption of the overload permitting a
decision to either work overtime or re-schedule activity dates. The resource levelling
option helped in making a decision scientifically.
As already stated, workload at the start and end sections of any order cycle was
considerably higher than mid-section. This called for careful selection of orders with
predetermined lead time and calculated staggering of delivery dates in one team of
227
executives for scientific and optimum use of available resources. Assuming that the
10-executive resource was an ideal mix of expertise to execute an order, then 13 orders
could be handled by one team at 100 percent utilisation rate. Therefore, orders for a team of
executives should be chosen with a uniformly staggered delivery date with the correct mix
of lead time. Although ideal 100 percent utilisation of all resources might not be possible
practically, software helped in analysing what the correct mix of orders for a group of
resources should be, rationally and scientifically grouping multiple orders for optimum
utilisation of resources without delaying the delivery date. It was also observed in Kirat that
a typical team of ten executives generally handled 20-30 orders at a time. Thus, in an actual
scenario, it was more than likely that smooth execution of some tasks on some days would
be interrupted either due to non-availability of time from executives or misplaced priorities.
The executives reported the generic benefits of using software while executing talks using
the multi-order Gantt chart:
To Do List was a kind of mental assurance as it was a fool proof mechanism of order
follow up.
Holidays were incorporated in the calendar, so there were no last minute surprises.
Being always up to date with order status and pre-empt capability gave them an edge
over buyers. It boosted their self confidence.
Even though task prioritisation within a day was not felt necessary, a common schedule
in black and white helped all to work around a common goal.
Rather than individually setting and following up daily targets, team work approach and
milestone-based targets was found to work well with the multi-project Gantt chart.
The software feature and reports also helped executives to understand their
interdependent role in an order better and instilled a sense of teamwork.
6.4
whether national or international, tend to think that their orders were of the highest priority
and wanted to see frequent progress in their orders. Therefore, resources tended to migrate
between one order and another in response to the latest/loudest customers demand to keep
as many customers satisfied as possible. This phenomenon is referred to as multitasking
by Goldratt (1997). It was decided to first carry out a pilot study with an identified activity
where intermittent work interruption was extant, followed by a longitudinal study of a
representative set of orders to measure the impact of intermittent work interruption in the
manufacturing cycle time.
A pilot study was carried out with an identified activity where intermittent work
interruption prevails, to test the measurability of interruption time against work time, to
measure the amount of time loss per interruption and to test the authenticity and
reproducibility of measuring technique.
6.4.1.1 Methodology
This study was to provide an illustrative profile (of what is typical in industry) using a
representative case (section 3.5.3). Hence, a typical case of purposive sampling was used to
select Silvershine Apparels. The reason for selecting Silvershine Apparels was familiarity,
while the previous two case studies were conducted with ample management support. Data
was collected by a research associate for one month, supervised by the researcher. The
method of data collection was structured format designed in MS Excel worksheet. Preproduction activities in Silvershine Apparels were observed for one week to locate where
Intermittent Work Interruption was occurring and whether it was measurable. Pattern
making activity in Silvershine Apparels was selected for observation. In this case, pattern
making work defined the manual process which included developing a pattern either from
a measurement chart through drafting, and/or from a basic block, manual grading and
making of final production pattern. Minute to minute activity of one pattern master was
collected for one month excluding lunch breaks. The time scale was divided into 0.5 hours
(half hour) durations and each column in ensuing graphs represents duration of 0.5 hours.
229
Each row represents a different style. A cell is marked black when the pattern master was
working on the style and grey when no work was taking place on the style.
In order to measure the amount of time lost per interruption, a set of similar styles was
selected and pattern making of those styles were compared with and without any
interruption. Similar styles implied that the pattern making time for the styles was similar.
In actual working conditions, the same styles could not be observed for with and without
interruption, therefore similar styles were selected.
6.4.1.2
Data Collection
Data was collected observing one pattern master for one month, with timing initiated from
the moment the pattern master started work on a style. Working pattern of the pattern
master on a particular day is illustrated in table 6.10. Each box represents 0.5 hours
duration. Excluding 0.5 hours lunch break, the pattern maker worked for 10.5 hours in that
day and prepared patterns for 5 different styles. Out of five styles being worked, work was
interrupted on 2 styles (W231 and 2PIE), interruption took place once for each style and the
durations of interruption were 5.5 hours and 6 hours respectively. Pattern making for the
other three styles was uninterrupted.
Table 6.10
Environment
(Actual Scenario)
Style
Time Scale
W 231
Lunch Break
2 PIE- M Size
S3g-58 T
Jumper
Elastic Skirt
Legend
Working
No work / Time saving
230
6.4.1.3
Data Analysis
In case the pattern maker was given a fixed priority schedule and work was not interrupted,
then all styles could have been worked upon at a stretch without interruption. Table 6.11
represents a hypothetical case scenario of the day represented in table 6.10. However it may
be noted that style W231 and 2PIE took 2 hours each when work was interrupted.
Therefore, it may be safely assumed that styles W231 and 2PIE would take less than 2
hours when worked on without interruption. It was therefore decided to measure the effect
of interruption on activity duration. As in a real life scenario, it was not possible to have
data for activity duration with and without interruption for the same style, so it was decided
to take similar styles.
Table 6.11
Pattern
Making
Without
Intermittent
Work
Interruption
(Hypothetical Scenario)
Style
Time Scale
W 231
2 Pie- M Size
S3g-58 T
Jumper
Elastic Skirt
Legend
Working
No work / Time saving
The hypothetical scenario in table 6.11 could have many different sequences. Assuming
work interruption caused a loss in concentration (and the pattern maker must have spent
some additional time for styles W231 and 2PIE during the interruption), it could be safely
concluded that in a no-interruption scenario, the pattern maker would probably complete
the pattern for all 5 styles in less than 10.5 hours.
To measure the amount of time loss per interruption, 16 nearly similar styles were selected
from those in production or sampling.
231
Table 6.12
64138
64138-7
TS2-3349
64428T
TS2-1349
TS2-1339
TS2-6320
TS2-7315
64428T
7041
TS2-7320
TS2-6320
TS2-5312
SS-1345
67423
64138
TS2-7315
TS2-7320
67424
15543
TS2-6315
SS-3452
TS2-1309
SS-1299
M4213
M4213-2
BP-48352
M4213-5
M1189
M1189-1
L4001EW
SS-1555
Legend:
Orange Standard Time without Interruption
Grey Actual Time Taken with or without Interruption
232
In the chart above, the number of interruptions was shown numerically against the bars. For
example, style TS2-3349 had taken 3.5 hours, while a nearly similar style 64428T had
taken four hours with one interruption. Similarly, times taken for the set of all 16 similar
styles were noted and it was found that in four sets, there was no interruption and no
difference in time, in another two orders there was no interruption but 0.5 hours difference
was observed in time. In the remaining 10 sets of orders, there were interruptions and also
differences in time. An analysis of these 10 sets of orders showed that interruption occurred
16 times and total time lost was 17 hours. On the average, 45 percent of time was lost due
to interruptions. In four out of these 10 cases, a single interruption caused a delay of 0.5
hours and in one case, two interruptions caused a one- hour delay. An interview with the
pattern master supported that fact that for every single interruption, on an average 0.5 hours
additional time was required to acclimatise to the new task; this could be termed as focus
loss or start up loss.
6.4.1.4
Conclusion
In certain technical tasks such as pattern grading, Intermittent Work Interruption induced
start up loss due to time required to regain concentration and style familiarisation, thus
increasing overall task duration. Due to frequent changes of task, the start up loss/set up
time/focus loss could increase the overall task duration by an average of 45 percent. Apart
from pattern making, CAD and sample making were other areas where Intermittent Work
Interruption was a regular phenomenon. Intermittent Work Interruption was found even
among merchandisers and quality controllers. It was observed that while one merchandiser
was preparing size tech pack of one style, she was made to abandon that work half way
and asked to prepare a fax reply for another style. Quality controllers measuring size sets
(for dispatch by courier to a buyer) were often interrupted by merchandisers and made to
attend to other pressing issues.
based activities must be given a prioritised schedule and Intermittent Work Interruption
avoided as far as possible. It was then decided to conduct longitudinal studies on the effect
of Intermittent Work Interruption on other skill-based activities.
6.4.2.1 Methodology
The sample company selection for longitudinal study was again to provide an illustrative
profile using a representative case (section 3.5.3), therefore typical case purposive sample
selection method was followed and data was collected through structured format. The
manufacturing organization selected for the longitudinal study was Kirat. Silvershine
Apparels was avoided to eliminate the possible wrong practices or biasness that may have
been followed in Silvershine. The Pre-production activities in Kirat were observed for one
week to identify the most crucial areas of Intermittent Work Interruption in skill-based
activities. Two activities, namely pattern making and sampling, were selected for structured
observation. Minute to minute activity in both departments was collected for three months
including lunch breaks. While pattern making involved only the pattern maker (trying to
assess the Intermittent Work Interruption of one person), sampling involved one sampling
master-cutter and three tailors working in make through system. In the second case,
Intermittent Work Interruption of one department was measured as a whole. Pattern making
activity was divided into two parts; pattern making-I and pattern making-II. Time taken for
pattern making-I included manual drafting to prepare the first pattern from the specification
sheet for the first fit, while pattern making-II included pattern alterations (as per fit
comments, if any), grading (manual), and preparing production ready patterns. After
pattern making-I, the fit sample was prepared and sent for buyers approval, which could
take a couple of weeks to sometimes more than a month. During fit sample approval
process, the patterns were modified a number of times based on the number of customer
234
assessment iterations, which was an intermittent process and time was not taken for that
process. Once a fit sample was approved, the patterns were finally modified, graded and
duplicated for production pattern (pattern making-II).
Sampling involved various activities like fabric spreading, which was generally done by the
master cutter and sometimes with help from a tailor; pattern marking and fabric cutting,
generally done by the master cutter. Re-cutting was generally done by the tailor himself.
Selection of right accessories was generally done by the tailor in consultation with the
master cutter and concerned merchandiser. For consulting with the merchandiser, the tailor
had to go to the merchandising dept. and sewing was done by tailors. Generally, one style
was worked upon by one tailor, but in exceptional cases one style could be worked upon by
more than one tailor at a time. Based on the style, embroidery and other value additions are
done either before, during or even after sewing. For embroidery and value addition, the
sample had often to be sent to an outside contractor. A tailor also did the initial inspection
for sewing defects and measurement variations. Sometimes the samples were inspected on
a dummy for fit by the master cutter in the presence of the merchandiser. Once the sample
was ready, the sample was measured according to specification by the merchandiser (while
the master cutter looked on), recorded in the sample measurement sheet and declared ready
for dispatch. While each pattern master was considered as one unit of pattern making
resource, the sampling team consisting of the master cutter and three tailors was considered
as one unit of sample making resource.
6.4.2.2
Data Collection
Forty styles were observed for pattern making-I and the same 40 styles were observed in
sample making. Thirty-one styles were observed for pattern making-II. During the case
study (chapter 6.4.1), it was observed that 0.5 hours was the minimum time span required
to concentrate on any new work and accordingly time was taken in multiples of half hours.
Fractions, if any, were rounded off to the next half hour. Data was collected style-wise for a
period of 4 months and summarised in figures 6.19, 6.20, 6.21 respectively for pattern
making-I, pattern making-II and sample making. Each row in the figure represents one
style. One square box indicates duration of 0.5 hours. In the data collection format, pattern
making was recorded for a maximum of twelve working hours and sample making was
235
recorded for maximum 24 working hours (equivalent to three shift hours of 8 hours each).
The shaded blocks indicated work in progress (either pattern making or sample making) on
the style and empty blocks indicated no work in progress on the style. In the previous case
study (section 5.5.1), data was collected for a given patternmaker for a given period of
time, so the shaded blocks were non-overlapping. But in this longitudinal study, data was
collected style-wise for a period of 4 months and the data collection sheets indicated a total
of how many hours were actually worked on a style continuously, the total of breaks in
continuity and total throughput time in hours taken for a style.
Data interpretation and calculations could be explained using an example. In figure 6.17,
the pattern for style ELC-9109 was made in four and half hours (throughput time) with two
interruptions of 1.5 and 0.5 hours in between. A total of 5 boxes were shaded; this meant
effective time taken to complete the pattern was only two and half hours. From the case
study it was found that, on an average, 0.5 hours time was lost for every interruption
(section 5.5.1); accordingly, for style ELC-9109, there was a total of one hour (two
interruptions of 0.5 hours each) of concentration loss for effective working time of 2.5
hours, which was 40 percent.
236
Figure 6.19
Sl.
No
Style No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
OR-9097
OR-9099
ELC-9101
OR-9103
ELC-9109
ELC-9111
OR-9112
ELC-9131
OR-9132
ELC-9136
OR-9139
SAYBURY-9141
SAYBURY-9142
SAYBURY-9145
SAYBURY-9147
SAYBURY-9149
SAYBURY-9157
SAYBURY-9161
K-29018
9102-CR
9106 CR
9107-CR
9109-CR
9109-CR
9125-CR
9125-CR
9128(MINT)
9154(N)
ELC-1136
ELC-1137
I-04-1
I-04-2
JDW-060
JDW-160
K-04-123 Gown
K-04-123 Robe
MP 613
MP 615
RM04
Vichy-group
Time Scale
4 Hours
4 Hours
4 Hours
Legend
Working on the Style
Not working on the Style
237
Table 6.13
Style No.
Actual
time
(Hr.)
Time
lost
(Hr.)
% time
lost
No.
of
interruptions
Duration of
interruption
(Hr.)
Avg.
throughput
(Hr.)
OR-9097
2.5
0.5
20.0
3.5
OR-9099
0.5
25.0
ELC-9101
33.3
OR-9103
0.5
12.5
ELC-9109
2.5
40.0
4.5
ELC-9111
2.5
2.5
OR-9112
ELC-9131
2.5
0.5
20.0
3.5
OR-9132
0.5
16.7
2.5
5.5
10
ELC-9136
0.5
12.5
11
OR-9139
2.5
0.5
20.0
3.5
12
SAYBURY-9141
13
SAYBURY-9142
2.5
2.5
14
SAYBURY-9145
3.5
28.6
4.5
15
SAYBURY-9147
2.5
0.5
20.0
4.5
16
SAYBURY-9149
33.3
17
SAYBURY-9157
0.5
16.7
18
SAYBURY-9161
0.5
16.7
19
K-29018
2.5
2.5
20
9102-CR
0.5
21
9106 CR
1.5
1.5
22
9107-CR
23
9109-CR
25.0
3.5
7.5
24
9109-CR
3.5
28.6
3.5
25
9125-CR
0.5
16.7
26
9125-CR
0.5
16.7
27
9128(MINT)
0.5
16.7
2.5
5.5
28
9154(N)
3.5
0.5
14.3
5.5
29
ELC-1136
0.5
16.7
30
ELC-1137
0.5
16.7
1.5
4.5
31
I-04-1
32
I-04-2
3.5
28.6
10.5
33
JDW-060
0.5
16.7
2.5
5.5
Sl.
No.
16.7
238
34
JDW-160
1.5
1.5
35
K-04-123 Gown
36
K-04-123 Robe
0.5
16.7
3.5
37
MP 613
0.5
16.7
4.5
38
MP 615
2.5
0.5
20.0
3.5
39
RM04
0.5
16.7
40
Vichy-group
2.5
0.5
20.0
5.5
41
Average
2.775
20.6
0.925
2.175
4.825
Data for pattern making-I was tabulated for 40 styles and for pattern making-II, 31 styles.
Calculations for actual time, number of interruptions, time lost due to interruptions (leading
to transient loss of concentration), percentage time lost due to loss of concentration, and
actual throughput time were made. Calculations for pattern making-I is presented in table
6.13, similar calculations were done for pattern making-II and sample making and
presented in table 6.14 and 6.15. The time lost due to interruptions was directly
proportional to number of interruptions, not to duration of interruptions. For example style
ELC 9101 has two interruptions and therefore loss of concentration is 1 hour, unaffected by
the total duration of interruption, i.e. 6 hours. Two pattern masters were responsible for the
task of pattern making-I and II collectively. Based on shifting priorities presented to them
by the merchandisers, they would start, interrupt and complete the pattern making.
239
Figure 6.20
Sl.
No
Style No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
OR-9097
OR-9099
ELC-9101
ELC-9109
ELC-9111
OR-9112
ELC-9136
OR-9139
SAYBURY-9141
SAYBURY-9149
SAYBURY-9157
SAYBURY-9161
K-29018
9102-CR
9109-CR
9109-CR
9125-CR
9125-CR
9154 (N)
ELC-1136
ELC-1137
I-04-1
I-04-2
JDW-060
JDW-160
K-04-123 Gown
K-04-123 Robe
MP 613
MP 615
RM04
Vichy-group
Time Scale
4 Hours
4 Hours
4 Hours
Legend
Working on the Style
Not working on the Style
240
Table 6.14
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Style No.
OR-9097
OR-9099
ELC-9101
ELC-9109
ELC-9111
OR-9112
ELC-9136
OR-9139
SAYBURY-9141
SAYBURY-9149
SAYBURY-9157
SAYBURY-9161
K-29018
9102-CR
9109-CR
9109-CR
9125-CR
9125-CR
9154 (N)
ELC-1136
ELC-1137
I-04-1
I-04-2
JDW-060
JDW-160
K-04-123 Gown
K-04-123 Robe
MP 613
MP 615
RM04
Vichy-group
Average
Actual
time
(Hr.)
2
1.5
2
3
3
2.5
2.5
2
2.5
1.5
2
2
3
3.5
2
2
2
2
3
3.5
3.5
2.5
3.5
2.5
1.5
2
2
3
1.5
3
2
2.40
Time
lost (Hr.)
0.5
0.5
0
1
0.5
0.5
0
0.5
0.5
0.5
0.5
0
0.5
0.5
0.5
0
0
0
0.5
1
1
0.5
1
0.5
0
0
0.5
0.5
0.5
0
0.5
%
time
lost
25.0
33.3
33.3
16.7
20.0
25.0
20.0
33.3
25.0
16.7
14.3
25.0
16.7
28.6
28.6
20.0
28.6
20.0
25.0
16.7
33.3
25.0
24.0
No.
of
interruptions
1
1
0
2
1
1
0
1
1
1
1
0
1
1
1
0
0
0
1
2
2
1
2
1
0
0
1
1
1
0
1
0.84
Duration of
interruption
(Hr.)
1
1
0
2
3
2.5
0
1
4.5
2
1.5
0
1
4
3.5
0
0
0
1
2.5
2.5
1.5
5.5
1.5
0
0
2.5
2.5
1
0
2
1.60
Avg.
throughput
(Hr.)
3
2.5
2
5
6
5
2.5
3
7
3.5
3.5
2
4
7.5
5.5
2
2
2
4
6.5
6
4
9
4
1.5
2
4.5
5.5
2.5
3
4
4.02
241
Legend
Working on the Style
Not working on the Style
242
Table 6.15
Style No.
Actual
time
(Hr.)
Time
lost
(Hr.)
% time
lost
No.
of
interruptions
Duration of
interruption
(Hr.)
Avg.
throughput
(Hr.)
OR-9097
7.5
13.33
11
18.5
OR-9099
6.5
0.5
7.69
13.5
ELC-9101
0.5
7.14
6.5
13.5
OR-9103
5.5
0.5
9.09
7.5
13
ELC-9109
7.5
40.00
13.5
21
ELC-9111
0.5
25.00
10.5
12.5
OR-9112
14.29
ELC-9131
6.5
15.38
6.5
13
OR-9132
25.00
11.5
15.5
10
ELC-9136
8.5
0.5
5.88
13.5
11
OR-9139
11.5
1.5
13.04
5.5
17
12
SAYBURY-9141
0.5
7.14
11
13
SAYBURY-9142
5.5
18.18
9.5
15
14
SAYBURY-9145
6.5
15.38
11.5
18
15
SAYBURY-9147
1.5
16.67
13
22
16
SAYBURY-9149
1.5
18.75
17
17
SAYBURY-9157
6.5
15.38
9.5
16
18
SAYBURY-9161
0.5
16.67
14
17
19
K-29018
14.29
16.5
23.5
20
9102-CR
1.5
16.67
13
21
9106 CR
6.5
15.38
13.5
22
9107-CR
12
8.33
7.5
19.5
23
9109-CR
1.5
16.67
8.5
17.5
24
9109-CR
14.29
13
25
9125-CR
7.5
0.5
6.67
7.5
15
26
9125-CR
5.5
0.5
9.09
9.5
15
27
9128(MINT)
0.5
7.14
13.5
20.5
28
9154(N)
33.33
15
18
29
ELC-1136
5.5
1.5
27.27
11.5
17
30
ELC-1137
5.5
1.5
27.27
14.5
31
I-04-1
0.00
32
I-04-2
8.5
1.5
17.65
17.5
33
JDW-060
14.29
12.5
19.5
Sl.
No.
243
34
JDW-160
16.67
16.5
22.5
35
K-04-123 Gown
0.5
10.00
36
K-04-123 Robe
20.00
11.5
16.5
37
MP 613
9.5
0.5
5.26
18.5
38
MP 615
25.00
9.5
13.5
39
RM04
12.50
11
19
40
Vichy-group
0.5
12.50
11.5
15.5
41
Average
6.61
15.36
1.93
9.10
15.71
For sample making, all activities done in-house were timed and recorded in the following
table sample-wise (Figure 6.21). Anyone in the sampling team of master-tailormerchandiser doing something (either cutting, sewing, inspecting or even selecting
accessories, etc.) on the style is recorded as working. Technically, it was possible to
complete a sample once started, but due to some reason or another (often changed priorities
and pending decisions), there were interruptions which were recorded as not working. Out
of 40 styles observed, only one style was completed uninterrupted. The average working
time for sample making came out to be approximately 6.6 hours and time lost due to
Intermittent Work Interruption in sample making found to be 15.35 percent. Average
throughput time was 15.7 hours with duration of interruption 9.1 hours and number of
interruptions two on an average.
In pattern making-I, pattern making-II and sample making, duration of interruption was
found to have a very strong positive correlation (0.98, 0.95 and 0.85 respectively) with
actual throughput time. In pattern making-I and II, the number of times work was
interrupted also found to have positive correlation (ranging between 0.79 to 0.76) with
actual throughput time. This established the finding that pattern making throughput time
was highly dependent on interruption time as well as number of interruptions. However,
number of interruptions in sample making did not have a strong correlation (0.45) with
actual throughput time. This indicated that loss of concentration was a serious problem in
pattern making activity whereas sample making is not really affected by concentration loss.
244
Table 6.16
Avg. % time
lost
(on
actual time)
Avg. No.
of
interruptions
Avg. Duration
of interruption
(Hrs.)
Avg.
throughput
(Hrs.)
Pattern Making I
2.78
20.61
0.93
2.18
4.83
Pattern Making II
2.40
24.05
0.84
1.60
4.02
Sample Making
6.61
15.36
1.93
9.10
15.71
The average elapsed time for pattern making-I (including interruption time) is 4.83 hours,
however actual duration for same is only 2.78 hours. The potential to reduce the actual time
by eliminating intermittent work interruptions is another 20.61 percent.
Merchandiser consulting with the buyer for selecting right accessories, so a decision
was pending (on hold) for that style. The tailor had to perforce work on another style.
During sewing, any confusion in specifications led to clearance pending from the
merchandiser and master. The tailor had to perforce work on another style.
Some construction method required a clarification from the master, who was busy
cutting a pattern in another style, resulting in the tailor switching over to yet another
style.
Some special sewing was required to be done and that special machine (generally only
one was kept in the sampling department) was being used by another tailor, resulting in
the tailor switching over to another style.
6.4.2.4 Conclusion
Although the average time of actual work, number and duration of interruptions as well as
average throughput time for pattern making-II were found to be higher by minimum 10
percent (number of interruptions) to maximum 30 percent (duration of interruptions) than
pattern making-I, no substantial difference in pattern of work was found. Although the
average throughput time for patternmaking I and II cannot be compared as the nature of
work was different, the lower number and duration of interruptions may have contributed to
245
the fact that initial pattern development from specification sheet required more/frequent
clarifications due to incomplete information, lack of understanding and interpretation of
specifications by the pattern master.
The reasons behind Intermittent Work Interruption in pattern making and sample making
were simple changes in priorities and often, measurement clarifications. Prioritising of
work was considered as the prime control parameter to minimise Intermittent Work
Interruption and accordingly, a patternmaking and sampling activities priority chart was
introduced in both. The list of styles for which either the first pattern was to be prepared
(Pattern making- I) or the pattern was to be modified, graded or production pattern
prepared (pattern making-II) was prepared in synchronicity with other activities. Daily
target list was given to the individual pattern masters who were advised to adhere to the
prioritised schedule.
The combined priority list of activities was to be generated after complete implementation
of the multi-project Gantt chart. So the longitudinal effect of control parameters on
Intermittent Work Interruption was not measured as part of the research; however, the
important observations led to conclusions and recommendations to improve efficiency.
Priority charts were also introduced to the sampling section. Adherence to priority charts
was possible to a great extent, but the targets were never met due to the difficulty in setting
realistic targets caused by unforeseen activities. The researcher concludes that even though
target setting was not possible, Intermittent Work Interruption was reduced to a great extent
by adhering to the priority chart.
246
Chapter Seven
7.0
Conclusion
Indian clothing supply chains were studied to explore normal practice with respect to
current supply chain management theory. The aim of this investigation is to identify the
critical issues concerning production lead time for contract apparel manufacturing supply
chain, analyse the reasons behind delay in lead time, evaluate different improvement
options, and suggest easy to use rationale-driven practical solutions. The said solutions
would be arrived at by analysing the reasons behind the delay in lead time, evaluating
different improvement options and suggested for implementation as easy to use rationaledriven practical solutions. The solutions also include best practices backed by scientific
logic and appropriate operation research principles.
7.1
Objectives 1(To develop a full understanding of the Indian apparel export manufacturing
industry and its supply chain network) and 2 (To analyse the variability of processes within
the network and develop best practice methods) were aimed at developing an understanding
of the Indian supply chain networks and in particular analysing the variability of the
product development and pre-production processes in the networks.
Product development, sample approval during fit and size set and management of the
critical path are the most time consuming activities and need improvement. Cost of
communication and late submission of samples are given negligible importance. However,
concern about controlling costs was more evident than controlling time. There are three
reasons behind over-emphasis on cost control: firstly, monetary conversion of time delay
was not easy to calculate; secondly, traditional CMT manufacturing practice is overdependent on cost control and thirdly, Indian apparel manufacturers are mainly involved
from the post-merchandising stage onwards, where price is more important
than time (section 2.7).
247
While it is acknowledged that more and more buyers are now looking for Indian
manufacturers ability to develop new products (section 2.3.2), a change is found necessary
in the latters mental outlook. The survey emphasised the communication problem during
sourcing of material, the inordinately lengthy product development period and equally
specific, the long sample approval procedure, all of which require immediate redress to be
able to compete globally.
The unanimous view of industry was an in-depth evaluation of internal activities which
they could influence and control. Moreover, the focus should be on identifying parameters
that are controllable and on techniques that are universally applicable. Hence it was decided
to investigate the product development and pre-production processes in greater depth.
Due to continuous change and unpredictable trends in fashion garments, the product
development process sequence is of the non-exhaustive type, and continuously evolving. It
was realised that it would be impractical to rationalise or standardise the product
development process sequence. Instead, rationalisation of the number of sample approvals
may be a feasible step towards rationalisation of the process, thus shortening the product
development and pre-production lead time.
It was realised that the number of sample approval steps could be rationalised to three. The
first is to check the look, silhouette, overall proportion of measurement and construction
details, in tune with the second stage of Plumlees six stage no-interval coherently phased
product development (NICPPD) model (section 2.3.1). In the next step, the sample is
checked for fit, measurement and balance (compatibility between fabric type, drape and
measurements), which is in tune with the third stage of Plumlees model. In the third step,
the sample is checked for size grades, workmanship, all raw materials and accessories and
proximity to the first sample, in tune with the fifth stage of Plumlees model. While all
three steps would be required for full-packaged (fully factored) manufacturing, it was
found that the second and third step of sampling was generally sufficient for contract
manufacturing. This outcome justified and set the scene for further research.
248
The outcome of the follow-on research can be broadly divided into two sections: firstly,
improvement potential in lead time and secondly, bottleneck management of preproduction resources.
7.2
The third and fourth objectives were to analyse value added and non-value added delay
contributing activities in the production cycle, with a view to identifying improvement
opportunities.
Pre-production time took approximately three fourth of total lead time (order confirmation
to delivery). Approval process takes nearly half of pre-production time and iteration, which
is a subset of approval process and a non-value added activity, takes up nearly one third of
approval time.
Although strong positive correlation was found between the overall process time with subprocesses, it was also obvious that different sub-processes had varying degrees of influence
on the overall process time.
This analysis thus testified to the fact that sample making right first time was the weakest
link in the Indian apparel manufacturing supply chain and justifies (re-emphasises) the
apprehension expressed on technical capability of product development (section 2.3.2).
249
No significant correlation (0.37) between actual production time (fabric spreading till
goods shipped out of factory) and total lead time suggested that change in production time
had no effect on overall manufacturing lead time. However as the actual production time
hardly overshoots the planned production time (section 2.7), it may be interpreted that
irrespective of total lead time increase or decrease, the production time allotted remained
unchanged. This phenomenon proves another apprehension correct that pre-production
activities actually overshoot planned time, eating into planned production time (section
2.7). The reduced production time effectively means hastened production process and leads
to compromised product and process quality, a concern expressed by several experts in the
literature (section 2.7).
The instances of iteration during fit sample were found more than double than the cases of
iteration during size set. Fit sample making requires in-depth understanding of silhouette in
context with the specification, while size set sample making merely uses the grade rule
(often supplied by the buyer). This indicates either incapability of correct interpretation of
the sketch and specification during patternmaking, an apprehension expressed by experts
(section 2.3.2) or due to specification changes asked by buyer. Average iteration time
during fit sample was also found to be significantly higher than iteration during size set
sample approval. This indicates possibility of successive iteration due to repeated rejection.
Secondly, this also indicates that the duration of fit sample making is probably higher than
size set making. This may be attributed to the Indian pattern makers habit of drafting
patterns afresh with every changed measurement instead of manipulation of the basic block
(section 2.3.2).
It was also found that approximately 40 percent of pre-production activities were externally
dependent; this meant approximately 60 percent of pre-production time was dependent on
internal resources that could be compressed by half through critical chain implementation.
Iteration took up another 15 percent of pre-production time, which is externally dependent.
As both sets of tasks were mutually exclusive, elimination of both could be beneficial. For
example, elimination of iteration will reduce 15 percent of externally dependent time and
critical chain implementation will result in a further 30 percent reduction (half of 60
percent) of internal activity. Therefore, overall reduction possibility in pre-production time
250
due to elimination of iteration and implementation of critical chain totals 45 percent. It was
also found that in a 100 day lead time period, pre-production consumed 73 days. 45 percent
reduction of 73 percent means 33 percent reduction in overall lead time. So it could be
conclusively stated that elimination of iteration and implementation of critical chain had
inherent potential to reduce manufacturing lead time by one third. Frequent iteration in fit
and size set sample approval corroborated the theory that Indian product development
team is strong in fabric development, sourcing, pricing, etc.but they are very poor in
knowledge of fit and pattern details (Malik, 2009) One third time reduction from total
manufacturing cycle or 33 days reduction in absolute term would give tremendous
competitive advantage to Indian manufacturer and would nearly compensate for the
shipping time.
The value added and non-value added time analysis revealed an interesting aspect of a
manufacturing supply chain. Every macro activity (value addition) was followed by a
validation activity by the downstream player. Validation was primarily the approval
process. Due to geographical distance and other logistic issues, validation activity took two
to three times the original value addition.
251
For example, FIT sample making was followed by FIT sample approval by buyer. While
the FIT sample making took the equivalent of 15 days20, the approval of FIT sample took
31. Similarly size set sample making took the equivalent of 2.5 days, while the approval of
the same took around nine. It is interesting to note that while the first two processes (fit
sample approval) are seen in the third stage of Plumlees model, the size set approval
process is from Plumlees fifth stage. It can thus be assumed that fit sample approval
process actually spreads over into Plumlees fourth stage and market feedback and style
modification at the retail end was probably influencing delayed feedback on fit sample.
Moreover, the limited weekly schedule of live model fitting at the customers end (section
5.3.4) also increases the waiting time, attributing to the delay.
Significantly lower time for size set sample approval may be attributed to two reasons:
firstly, while the fit sample was sent to a buyer in a different country, size set was approved
by the buyers representative office in India. Secondly, during fit sample approval, it is
generally important for manufacturers to await the arrival of the physical sample with
remarks, to be able to understand the fit comments correctly and modify accordingly.
However, for size set, manufacturers may not actually await arrival of the physical sample
and move into the next activity after incorporating changes based on remarks sent by fax/email. It may be concluded that local or on-site expertise and authority is the key to faster
response during sample approvals.
This finding also re-emphasizes the findings of the earlier study (4.3.2) where only half of
the focus group felt that returning of physical sample is not necessary during size set
approval. While it was already argued in the earlier study that there can be no standard
practice (section 4.2.3), it can be justified that a fit sample requires market feedback at the
retailers end and therefore, need to be couriered. However the size set is actually a check
of technical details like placement of accessories, grading of patterns, fitting,
measurements, fabric shrinkage, etc. (section 4.3.3), therefore, the regional office of the
buyer may be capable of evaluating (approving or rejecting) the same. The above finding
reinforces the earlier findings that fit sample making is the bottleneck in sample approval,
accounting for time lost as well as creating vulnerability to iteration.
20
The duration in minutes is by divided by 24 hours and 60 minutes to convert to days equivalent
252
Lab dip preparation is followed by approval by buyer (or buyers office). While the Lab dip
preparation took two days equivalent21, the approval of Lab dip took four. Similarly, the lab
test on bulk fabric took 1.5 days equivalent, while the approval of lab test again took four.
Only in the case of bulk fabric make and procure activity, actual value-addition time (ten
days equivalence) was more than validation time (1.5 days).
Comment on lab
dip received from
the buyer (4 days)
It is interesting that the size set and fabric-related approvals are dealt with at the buyers
regional office in India, whereas only fit sample approval was couriered to the buyers
country. This also explains what approvals must be done by buyer abroad and which
activities can be validated by the buyers regional office. If we try to analyse all activities
with relation to Plumlees model, we see that the activities in the fourth stage of Plumlees
21
The duration in minutes is by divided by 8 hours (shift) and 60 minutes to convert to days equivalent
253
development cannot be executed at the manufacturers end. Thus the sample has to be
couriered, lengthening the approval process and making it vulnerable to iteration. The
remaining activities can be done at the buyers representative office in the manufacturers
country.
Lastly, a very high positive correlation (86.35) between waiting time and actual elapsed
time indicates that minimisation or elimination of waiting time would compress the
manufacturing lead time. As explained in section 5.3.1, the reason behind waiting time is
the traditional practice of working with a target schedule date rather following the relay
race approach, where succeeding activity pulls the work from the preceding activity. As the
longitudinal study revealed that transportation time was only 10 percent and approximately
51 percent of elapsed time was waiting time (which is pure non-value- added activity), it
can be concluded that change of work practice to relay race approach can safely minimise
or even eliminate a bulk of the waiting time.
The post longitudinal study literature search on value added and non-value added time
measurement in garment industry revealed some interesting insights of value stream
mapping of production processes in the Indian garment industry (Agarwal 2007), (Nagar et
al. 2008). While this research simultaneously tracked 85 pre-production activities and 18
production activities for a total of 35 orders, Agarwals study mapped only one order for
220 activities in production processes (fabric spreading onwards) and Nagars study
covered one order for more than 243 activities, spanning from raw material store to
shipment. Agarwal recorded a little over six percent as value added time while Nagar
recorded a little over one percent as value added time. There was, however, a difference
between both approaches in scope as well as in calculating value added and non-value
added time.
254
The
fifth
objective
of
the
study
was
'To
evaluate
the
The first optimisation technique evaluated was concurrent and collaborative product
development. While collaboration between partners aims to develop a product in less time
(due to less iteration in the process), concurrency aims to reduce the cycle time by
parallelism. It was found that concurrent and collaborative product development has the
potential to reduce developmental lead time. However, concurrency and collaboration were
practiced, not as a time reduction strategy, but to garner economic benefit, and time
reduction was achieved as a secondary benefit. While the study concentrated on medium
and small scale industries, substantial economic benefit is realised only through a large
scale of operation. Therefore it was realised that the size of the order, popularity of the
brand name and type of merchandise were some of the key drivers behind the concurrency
and collaborative practice amongst small and medium enterprises.
The second optimisation technique evaluated was critical path/critical chain principle to
reduce lead time in apparel manufacturing cycle in general and pre-production activities in
particular. Even though these principles proved to be effective in lead time compression, it
was found that manual implementation and execution of critical path/critical chain in
manufacturing environment was difficult and non- sustainable.
While analysing the reasons it was found that making a Gantt and/or PERT chart manually
or using spreadsheet was voluminous, cumbersome (time consuming), complex in nature
and error-prone. A Gantt and/or PERT chart made manually or by using a spreadsheet was
unable to synchronise workload distribution between a large pool of activities and common
limited pools of resource executives. In the order follow up mode (while the order is
actually being executed), while changes in one activity take place, the Gantt and/or PERT
chart cannot incorporate concomitant changes in other activities dynamically.
255
The benefits that can be realised from software-based critical path/critical chain
implementation was ease of preparation of Gantt chart, automatic generation of critical path
thus prioritising activities, realistic workload calculation for a common pool of executives
for a group of orders, and being guided in day to day order execution /order follow up by
numerous alerts and reports automatically generated by the software. The resultant
prioritised, planned work execution, in contrast to the fire-fighting mode will reduce
uncertainties/buffers in the manufacturing cycle thus reducing lead time.
Apart from lead time reduction, the study also reflected resource allocation pattern in preproduction processes. In tune with phase three of Plumlees model, the study revealed that
manufacturing organisations generally start the product development process converting
the sketches and specifications to actual samples. While the process initiation can be receipt
of techpack (packet containing technical specifications) and/or order confirmation, the
process involved material (fabric and accessories) evaluation and sourcing to construct the
prototype and fit sample development from sketches and specifications, pattern
development and fit standard finalisation. The next stage of activities executed by
manufacturers like preparing size set and approval of material are in tune with phase five of
Plumlees model. Phase four of Plumlees model primarily involves marketing the line to
retail channel and refinement of cost and modification of the line, which does not involve
much activity at the manufacturers end (except of salesman sample if applicable).
From the executive workload pattern (figures 6.11, 6.12 and 6.13) it was clear that during
the total 10-15 week span of the manufacturing cycle, generally the workload during midcycle, i.e. during the sixth and seventh week, was the least. This significant gap of activities
may be attributed to phase four of Plumlees model. Activities in phase four were done by
the buyer, and the manufacturers resources were not used in this phase. This resulted in
freeing up resources workload at the manufacturers end in a sequential chain. This
relatively free period between phases three and five was reflected in all resource
histograms, where workload to resources was found to be zero in the mid section of the
manufacturing cycle (figures 6.8, 6.11, 6.12, 6.13). This polarisation of resources created
bottlenecks, delays, overtime of resources during the beginning and end of the
manufacturing cycle, whereas resources were comparatively free in the middle of the cycle.
256
It was also observed from the multi-project analysis that while executing a single order, the
common resource team were 11 to 16 percent loaded and while executing three orders at a
time, the common resource team was loaded just 23 percent. Although a simple
extrapolation would mean that one team could handle 13 orders, the area of concern
remained the distribution of workload along the manufacturing cycle (by staggering of
delivery days). Although minimised to a certain extent in comparison to a single order
scenario, the multi-project histogram also showed reduced concentration of workload
during the middle weeks of the manufacturing cycle.
This workload analysis actually explains why executives are overloaded during the initial
and end part of a manufacturing cycle while under-tasked during the mid-section of the
manufacturing cycle. While planning multi-project Gantt chart using software tools, a
careful staggering of delivery dates can be planned to ensure peak workload of one order is
superimposed with lean workload of another order to balance the overall workload of
executives.
The third analysis of critical chain implementation in pre-production revealed that skillbased activities in general were comparatively more prone to intermittent work
interruption. While analysing the intermittent work interruption, it was found that the actual
time loss in throughput was only due to loss of concentration and did not depend on the
duration of interruption (as the resource was busy in another activity). However, the
duration of interruption and the number of times an activity was interrupted were both
found to have a very strong positive correlation with actual throughput time of pattern
making activity. Average percentage loss of time due to intermittent work interruptions
ranged from 15 percent for sample making to 24 percent for pattern making, which could
easily be saved by prioritised workload distribution to resources.
In many instances it was found that people were habituated to multitasking even without
any forced interruption. When one person did all operations except sewing, he/she
generally did batch processing. For example, a Pattern Master would prepare a pattern for
three styles, then cut fabric for all three styles and issue them to the sample tailor for
257
sewing and so on. Generally, in any small to medium size company, there was more than
one pattern maker, sample maker, etc. To allow flexibility in such organisations, the
preferred solution could be allowing one operator to do multitasking, who would take care
of pressing emergencies, while the other operators could strictly follow the prioritised
schedule.
Seeking last minute extension of delivery date by Indian apparel manufacturers was a
perennial problem (section 1.3). The reason behind the delay was either due to noninclusion of holidays in the calendar (Jana & Gibson, 2005), or inability to calculate and
allocate resources. The multi-order workload plan (developed using PS8 software) enabled
distribution of workload on resources, pre-empted the overload on executive resources in
advance and thus a decision could be taken to either work overtime or re-schedule activity
dates. The resource levelling option further balanced out the peak and trough loads
scientifically and automatically, thus reducing overtime of resources.
Last minute changes in product specifications (section 2.3.2) often led to a change of
process, thus changing workload of resources. In a real life scenario using a manual
planning method, although the bill of material was changed to meet the new specification,
the resultant change of process and/or change in resource workload was never re-calculated
and/or reallocated, resulting in a bottleneck of resources. The multi-order workload plan
(developed using PS8 software) enabled automatic and quick re-distribution of workload
on resources.
With more and more buyers looking towards India for full service supply, Indian preproduction execution needs to improve efficiency considerably while venturing into other
activities like line planning and research, concept development, marketing to retail channel
and line optimisation, which are currently done by retail organisation/brands themselves.
Indian small and medium apparel industry generally cater to selective seasons (section 1.3).
This resulted in accepting more orders (than resources can handle) in peak season and less
orders (resources remain idle) in trough season. This seasonal factor at the macro level had
already been reflected during the SCM awareness study (section 4.1). At micro levels also,
258
organisations could scientifically calculate and combine orders (using specialised software)
of various lengths of manufacturing lead time and stagger delivery dates in such a way so
that the distribution of workload to one common group of resources remained uniform
during the entire duration of manufacturing lead time.
7.4
It was confirmed during primary research that the clothing supply chain was controlled by
influencing retailers as previous authors have stated (Gereffi 1999 cited in Tyler et al. 2006,
Drucker 1992). Different buyers had different approaches to business, different ways of
doing things and also different levels of willingness to give up control and allow
manufacturers to take responsibility of more functions in the value chain. (Lezama et al.
2005). In a condition where a manufacturer could be supplying to many such buyers, the
role and responsibility of a contract manufacturer was limited and he was perhaps inhibited
from taking new initiatives, doing something new, or adopting innovative practices. Even
though the measures suggested are required to be taken at the operational level by contract
manufacturers, if the mandate came from the dominant player in the supply chain, the
adoption of such best practices would be faster and easier. Thus the research established
that reduction of number of iterations for fit and size set (thus approval time) could be a
key area for improvement or even outsourcing to third party expertise.
The research established that there was a strong requirement of rationalisation of sample
approval process to reduce it to the minimum, avoiding unnecessary repeats and waste of
time and effort. The focus group discussion indicated three stages to check. First, the look,
silhouette, overall proportion of measurement and construction details; in the second stage,
fit and measurement; and,
materials and accessories and proximity to the first sample. The fast fashion proponents
259
had, interestingly, either already rationalised the sample approval process (Barnes and
Gaynor Lea-Greenwood, 2006) or were aiming for it. However, future research is required
towards establishing such goals conclusively.
This research demonstrated improvised techniques to measure the value added, non-value
added and necessary non-value added time in detail for pre-production processes, which
includes external activities. Although standardised formats are available for value stream
mapping, which are suitable for measuring micro details of in-house manufacturing
processes (internal activities), future study may be carried out to standardise the value
stream mapping of a garment pre-production process that contains activities dependent on
both internal and external resources.
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289
Appendices
Appendix I
Human Nature of Working in a Project Environment
In a traditional critical path concept tasks are scheduled as-soon-as-possible (ASAP) from
the project start date. Every task has a published start and finish date. While this task
scheduled start and finish dates seems logical, it does not promote speed-to-market driven
performance. In fact, it ensures that early finishes are lost, and only late finishes
accumulate in the schedule.
Goldratt doubted that while critical path may be effective in machine driven project
environment, it needs subtle modification to suit human driven project scenario. In his
book Critical Chain Goldratt (1997) exemplified and summarized human nature of
working in a project environment and demonstrated a modified concept critical chain.
These characteristics are:
Firstly while estimating task duration, people worry about the effect of unplanned work
interruptions and generally add hidden safety. A 10-day task duration may have 5 days of
safety. This safety is hidden because the task is entered in the project as a 10-day task.
While its perfectly reasonable to have safety factor (especially with third party activities in
apparel manufacturing), but being hidden, often the purpose of safety is lost. General
human nature is to put off starting of any task until the last minute, thus eating away the
safety buffer in the beginning. Unfortunately, if the task then faces unplanned work
interruptions then the task will overrun estimate no matter how hard one works, as there
was simply not enough safety left to recover, this is referred as Student Syndrome.
Realistic estimation of activity duration time (without any buffer) and transparent pooled
buffer at important milestone and at the end of project is more realistic solution to the
problem.
Secondly work expands to fit the allotted time. If a task is estimated at 10 days, it usually
doesnt take less, people will simply adjust the level of their effort to keep busy for the
entire task schedule, and this phenomenon is called Parkinsons Law. Critical path
suggests all work should be scheduled as-late-as-possible.
Thirdly while working in a multi-project environment, people tend to stop working on one
task so that progress can be accomplished on another task in another project even though it
comes with the penalties of reduced focus and loss of efficiency. Unwittingly resources
tend to migrate between several projects in response to the latest, loudest customer demand
in an attempt to keep as many customers satisfied as possible (Goldratt 1997), this
phenomenon of showing progress on as many active projects as possible is called Multitasking. Critical chain suggests multitasking should be minimized and for that
prioritizing of activity is pre-requisite.
Fourthly as every task has a published start and finish date, and conventional wisdom
rarely reward early finishes, people tend to meet the published dateline and never
complete before time. Thus crucial early finish advantage of any activity is lost. Critical
290
chain proposes relay race approach, which de-emphasize the scheduled start and finish
dates and rather concentrate, instead, on triggering their preparation and start on the
preceding tasks progress.
Fifth, Critical Path is defined as the longest chain of tasks based upon only task
dependencies and generally does not consider resource dependencies. In the enclosed four
task example assignment both B and C can work concurrently as per dependencies are
concerned. However if common resources are to be used for B and C, the dependency
relation will change accordingly.
Diagram
Concept
Two:
Critical
Chain
Critical Chain is defined as the longest chain of tasks that consider both task dependencies
and resource dependencies. Thus critical chain concept is bound to work more realistically
in actual work environment where common resources are being used for a set of activities.
291
Appendix II
292
Manufacturer
Supplier
Buyer
Distributor
Retailer
Other, please specify
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Fibre
Yarn
Fabric
Accessories
Garment
Home Textiles
Other, please specify
(a)
(b)
(c)
(d)
(e)
(f)
1. You are a
293
In this section your organisation is being classified. Please choose the type that represents your organisation. If your organisation represents more than one
type (question no. 1-3), e.g. if you are manufacturer as well as buyer, please complete separate Feedback Format
ORGANISATIONAL CLASSIFICATION
Please do not write anything on the questionnaire, fill up the Feedback Format
Good morning / afternoon, my name is Prabir Jana, Associate Professor at NIFT, New Delhi. This questionnaire is a part of the research work undertaken by me
on Supply Chain Management in Indian Clothing Industry. This part of questionnaire (version 2000.07) aims to document the Indian Benchmark practices in
the area of product development, pre-production planning and manufacturing functions. I would like the senior operation manager of the organisation to spare
some of his valuable time answering the questionnaire, which will take approximately 45 minutes. By sharing the authentic information you will only contribute
towards development of our industry.
Supply Chain Management in Indian Clothing Industry: Pilot Survey (version 2000.07)
Appendix III-A
Supply Chain Awareness Survey: Questionnaire
Menswear
Women swear
Kids wear
Intimate apparel
Sportswear
Home textiles
Other, please specify
Spring
Trans (season between spring and summer)
Summer
Autumn (Fall)
Trans (season between autumn and winter)
Winter
Holiday
Spring
Trans (season between spring and summer)
Summer
Autumn (Fall)
Trans (season between autumn and winter)
Winter
Holiday
Yes / No.
If yes, what do you think about it? (You can tick multiple). If no, go to Q.no. 9
(a) It is a management tool (or software solution) for reducing cost
(b) It is a management tool (or software solution) for reducing time
(a) Seasonal
(b) Continuous.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
294
India should be more concerned with productivity quality improvement rather SCM implementation
India should understand ERP first then talk about SCM
India should improve communication infrastructure first before talking about SCM
In this knowledge economy software tools can't replace human being. As India has great human resource, we should not bother really.
SCM is a concept, and can be implemented without computer support
11. What is the annual turnover (calculated based on factory cost of the product) of the factory?
(a) < 25 lakhs
(b) 26 - 125 lakhs
(c) 125 400 lakhs
295
10. Rank the areas where you think improvement (in terms of reducing time) is possible using modern technology in different categories of supply chain?
Max. improvement possible (5) and min. improvement possible (1)
[a] Product development (concept to style approval) time
[b] Approval of initial sample to approval of production sample
[c] Bulk fabric ordering to fabric received in house
[d] Cutting to packing
[e] Shipment leaving factory to buyers warehouse
9. Rank the areas where improvement (in terms of reducing time) is required in different categories of supply chain? Required max. improvement (5) and min.
improvement (1)
[a] Product development (concept to style approval) time
[b] Approval of initial sample to approval of production sample
[c] Bulk fabric ordering to fabric received in house
[d] Cutting to packing
[e] Shipment leaving factory to buyers warehouse
(a)
(b)
(c)
(d)
(e)
8. What do you believe sincerely? Please rank, strongly believe (5) to don't believe (0)
19. What percentage of sewing machines are occupied (having work) during lean season (i.e. less than 80% work)
18. What is the total number of sewing machines in your sewing floor?
15. What is actual average working hours per day (Average of best six month)?
14. What is the production floor (only cutting+sewing+finishing) covered area ? (sq. mt)
(a) Sprading & Cutting
(b) Sewing
(c) Finishing
296
27. Average time (Consider average of any 20 samples developed) spent in each of the following stages of the pre-production process.
(a) Concept to style approval (initial sample) from buyer
(b) Approval of initial sample to approval of technical and fit sample
(c) Approval of technical and fit to approval of production sample
(d) Approval of production sample to start of production.
26. Average time (Consider average of any 20 samples developed) spent in each of the following stages of the product development process.
(a) Concept received from buyer to sample fabric procured
(b) Approval of fabric and sample order received from buyer
(c) Exhibition sample made and shipped
25. What is your product development (first spec to first fit sample) time? (Consider average of any 20 samples developed)
23. What is your product mix? Write top four products with % breakup and balance styles grouped into others.
22. What is your average throughput time? (Consider average of 20 orders in a year)
21. What are the average no. of styles handled per month? (Calculate average of best six months)
Jan ---Feb---Mar---Apr---May---Jun---Jul---Aug---Sep---Oct---Nov---Dec
20. Which are the months you work with full load (up to 80% capacity)? (tick the months)
297
34. Rank the pre-production activities in terms of most troublesome (5) and least (1).
(a) Development and approval of embroidery from embroidery contractor
(b) Development and approval of garment wash/dyed effect from outside process house
32. From how many different accessory suppliers (total) you source your accessories?
31. The reasons why all of the samples developed are not okayed for production. Rank maximum as (5) and minimum as (1)
(a) Raw material in the developed sample was not as per specification
(b) Measurement of the developed sample was not as per specification
(c) Sample reached too late to buyer
(d) Price point not accepted
(e) Order quantity was too small to accept
30. How important are the following operational issues regarding planning? Most important as (5)
(a) Compare actual to forecasted demand (of style) indicated by buyer
(b) Compare actual to forecasted demand (of fabric type) indicated by buyer
(c) Include third party capacity in calculations
(d) Visualise future capacity requirements
(e) Others, please specify
29. How important are the following operational issues regarding product development? Rank most important as (5)
(a) Communicate design electronically with the buyer
(b) Rapid calculation of accurate costings and effects of design changes
(c) Management of product development critical path
(d) Ability to transfer development data to production systems
(e) Others, please specify
298
28. What is your average sample adoption rate? No. of sampling styles get converted into production order upon total no. of sample developed, expressed in %.
(Consider average of last two seasons)
39. Sourcing of which of these accessories you face problem? Rank them according to max.(9) and min.(1) problem.
(a) Thread
(b) Fastners (Buttons, zips, rivets etc.)
(c) Interlining
(d) Shoulder pad
(e) Cord, laces, etc.
(f) Labels
(g) Tags
(h) Polybag
(i) Carton
(j) Velcro
37. Write down details of preferred 10 accessories suppliers from abroad. (First column indicates no. of suppliers you have for any one type of accessory).
36. Write down details of preferred 10 accessories suppliers from India. (First column indicates no. of suppliers you have for any one type of accessory).
35. What do you think average cost of product development (inclusive of mistakes and rework, try the break up in %)
(a) Raw material (fabric + accessories) development charges
(b) Labour charges for pattern development
(c) Communication charges (fax, e-mail, telephone etc.)
(d) Transportation & conveyance (courier, travel etc.)
(e) Other (specify)..
299
45. What is the annual average inventory (stock) of greige and finished fabric in terms of value and volume?
44. How many different fabric suppliers (total no.) do you source your fabric from?
(a) Within India
(b) From abroad
300
43. While sourcing accessories from abroad, which of the following was common? Rank as most occurrence (5) and least occurrence (1)
(a) Communication gap between supplier's office and warehouse (as you are communicating with supplier's office whereas goods are actually delivered
from supplier's warehouse)
(b) Communication gap between you and your subordinate (store staff who actually receive the goods).
(c) Delayed communication resulting delayed delivery of goods (as supplier's office and warehouse are at different places).
(d) You need to communicate something visual, which was not possible through telephone (so, need to be sent through courier).
(e) Others, specify
42. While sourcing accessories from India, which of the following was common? Rank as most instances (5) and least instances (1)
(a) Communication gap between supplier's office and warehouse (as you are communicating with supplier's office whereas goods are actually delivered
from supplier's warehouse)
(b) Communication gap between you and your subordinate (store staff who actually receives the goods).
(c) Delayed communication resulting delayed delivery of goods (as supplier's office and warehouse are at different places).
(d) You need to communicate something visual, which was not possible through telephone (so, need to be sent through courier).
(e) Other, specify
41. What type of problem you face while sourcing these accessories from abroad? Rank severest (5) to no problem (0)
(f) Getting the right quality, i.e. specification
(g) Getting the right quantity
(h) Getting it DTM (Dye to Match)
(i) Getting it in right price
(j) Getting it in specified time
40. What type of problem you face while sourcing these accessories from India? Rank severest (5) to no problem (0)
(a) Getting the right quality, i.e. specification
(b) Getting the right quantity
(c) Getting it DTM (Dye to Match)
(d) Getting it in right price
(e) Getting it in specified time
301
Thank you very much for your kind attention and patience in filling up the questionnaire. You may like to contact [email protected] for further details.
48. Write down details of preferred 10 fabric suppliers (both India & abroad):
47. Write the break up (%) of different types of fabric being sourced from suppliers abroad.
46. Write the break up (%) of different types of fabric being sourced from suppliers in India.
Appendix IIIB
Supply Chain Management in Indian Clothing Industry: Pilot Survey (version 2000.07)
QUESTIONNAIRE FEEDBACK FORM
If your organisation more than one type (question number 1-3) e.g. if you are manufacturer as well
as buyer, please complete separate questionnaire.
Organisation Name
Organisation Address
Organisation Code
Contact Person/s
Contact Person/s
(alternate)
Email Address
(Important)
ORGANISATIONAL CLASSIFICATION
QF-01
QF-02
QF-03
QF-04
QF-05
QF-06
QF-07
QF-08
QF-09
QF-10
302
QF-12
QF-13
QF-14
QF-15
QF-16
QF-17
QF-18
QF-19
Jan
QF-21
QF-22
QF-23
QF-24
QF-25
QF-26
Feb
Mar
Apr
May
QF-27
QF-28
QF-29
QF-30
June
July
Aug
QF-31
QF-32
QF-33
QF-34
QF-35
Sept
Oct
Nov
Dec
303
QF-36
QF-37
Supply to
(location)
Accessory
type
Max. lead
time (days)
Gurgaon
Thread
Thread
Button
Zips
Interlining
Shd. pad
Cord
Label
Tags
polybag
Carton
Others
21
Supply to
(location)
Accessory
type
Max. lead
time (days)
Delhi
Min.
lead
time
(days)
7
Min.
lead
time
(days)
Thread
Button
Zips
Interlining
Shd. pad
Cord
Label
Tags
polybag
Carton
Others
QF-38
QF-39
QF-40
QF-41
QF-42
QF-43
QF-44
304
QF-45
QF-46
Inventory
Value
Greige Fabric
Finished Fabric
Meterage
Write the break up (%) of different types of fabric being sourced from suppliers in INDIA
%
Max. lead Min.
lead
Sourcing of following fabrics
time (days) time (days)
100% cotton greige fabric
100% manmade (rayon, polyester etc.) greige
Blended greige fabric
Cotton yarn dyed stripes & plaids (plain / dobby)
Manmade & blended yarn dyed stripes & checks
Blended solid dyed and printed
Cotton solid dyed and printed
Manmade solid dyed and printed
Cotton greige knits
Cotton yarn dyed & jacquard knits
Cotton printed knits
Blended greige knits
Blended yarn dyed & jacquard knits
Blended printed knits
Others
QF-47
Write the break up (%) of different types of fabric being sourced from suppliers in ABROAD
%
Max. lead Min.
lead
time (days) time (days)
Sourcing of following fabrics
100% cotton greige fabric
100% manmade (rayon, polyester etc.) greige fabric
Blended greige fabric
100% polyester finished woven fabric
Denims
100% polyester Knits
100% polyester polar fleece
Blended yarn dyed & jacquard knits
Others
QF-48
Write down details of preferred Ten Fabric suppliers (both India and abroad)
Supplier
Supply from
Received at Fabric type
Max.
lead Min.
lead
time (days)
time (days)
A
B
C
D
E
F
G
H
I
J
305
Appendix IV
Brief of Organisations Participated in Pre-production Time Analysis
Kirat
Kirat is a 15 yrs old company, headquartered in Delhi, specialised in making nightwear for
European and American market and having Rs. 160 million turnovers in 2003. The
company has centralised merchandising division and two location of production. In the
head office it has merchandising division and also has cutting and finishing facilities but
subcontract the sewing capacity. The company also has an integrated manufacturing facility
of 20,000 sq ft. in Haryana, around 30 km from the head office. In the integrated facility
Kirat has cutting, sewing and finishing facility of 1500 garments per day. The head office
has centralised merchandising department where 5 merchandisers control the total activity.
The job responsibilities of merchandisers at Kirat are designated as handling different
accounts. The company was strong in product development and 34% of the eventual order
is from its own collection. The company participated in longitudinal study.
Gokaldas Images
Gokaldas Images (hereinafter referred as GI) is a owner driven but professionally run
organization. Indias one of the most respected and large manufacturing organization based
in Bangalore. GI has more than 28 manufacturing facilities located around Bangalore and
having turnover of $ 100 million. The dedicated manufacturing facilities make wide variety
306
of products form shirts, trousers, ladies fashion, structured garments like suits, ski jackets
and lingerie. The manufacturing location participated in the research was making ladies
high fashion merchandise.
Essel Inc.
Essel is a buying agent based in Bangalore sourcing high fashion merchandise for retailers
from UK and South East Asian countries. Essel is a partnership organization having
turnover of $ 5 million in 2003. It was known to researcher that Essel has relatively netter
system of record keeping of merchandising activities.
H&M
Liaison office for H&M Sweden sourcing high fashion merchandise. The turnover during
2003 was $ 80 million. The buying division participated in the study was sourcing from all
over India. Thus collecting record will have representation from all over India. The
company used to have custom built MIS software for record keeping and follow up.
V Overseas
Vishesh is a 15 yrs old company, headquartered in Delhi, makes high fashion garments and
having approximately $ 8 million turnovers in 2003. The company has multiple location of
production in NCR.
Misami Garments
Misami was a 10 yrs old company, headquartered in Chennai, makes high fashion garments
for boys and childrens and having approximately $ 8 million turnovers in 2003. The
company has multiple 4 location of production in Chennai and Bangladesh
ACC
Ambattur Clothing Company (hereinafter referred as ACC) is a owner driven but
professionally run organization. Indias one of the most respected and large manufacturing
organization based in Chennai. ACC has more than 10 manufacturing facilities located
around Chennai and having turnover of $ 100 million. The dedicated manufacturing
307
facilities make wide variety of bottoms, trousers, mens shirts. The manufacturing location
participated in the research was making mens shirt
Auric
Auric style was a 15 yrs old company, headquartered in Delhi, makes high fashion
garments and having approximately $ 4 million turnovers in 2003. The company also
sources garments for high fashion European buyer from several manufacturers in NCR. The
company claimed to be using MS-Excel based time and action calendar
Vertex
Vertex Pvt. Limited is headquartered in NCR and have installed capacity of 48000 standard
minutes per hour. Vertex Pvt. Limited has Rs. 900 million turnovers during year 2006, truly
representing Indian exporter in medium to big category as explained in chapter 1.3. The
company is working with multiple procurement channels; medium to big buying office,
importers abroad as well as direct export. The company works with both woven and
knitwear, having vertically backward integrated knitting facility while in woven category
company works with domestic as well as imported fabrics. The company has 85% in-house
own manufacturing and 15% out-house fabrication to balance the seasonal fluctuation. The
company is headed by a dynamic and visionary leader, alumni from countrys top business
school. The company uses a web based ERP solution to manage its data. The young team
of management are open to ideas and most importantly guided by a willing and cooperative top management. The company participated in Longitudinal study.
308
Appendix V
309
Appendix VI
Part-I
style no
Buying agency
destination
Activity
Buyer meeting
Fit sample making
a-requisition making
finalised design making
tracing design into butter
paper
tracing
design
into
garment
pattern making/cutting
cutting of fabric
Embellishments
Embroidery
Sewing
Finishing
Packing
sending the sample to
buying house
TOTAL
comments of the buyer
sending the sample to
buyer
Buyer analyse fit of the
garment
decision making
sending back to the vendor
TOTAL
5) Size set sample making
a-requisition making
tracing design into butter
paper
tracing
design
into
garment
pattern grading n cutting
(per piece include)
cutting of fabric
Embellishment/embroidery
s4r 1147
AIE
London
Actua Non-value
value added time
l time added in Waiting
(in min)
min
Time in
in
%
Conversi transpor days
waiting
on
tation
6
15
7
57
13
86
16
20
2
45
216
45
45
21339
99
31
38865
87
2880
15
15
2880
5760
28
75
37
183
67
428
310
sewing of garments
Finishing
Packing
TOTAL
80
94
12
1005
2356
70
Part - II
Non-value
value added (in
added
Actua
min)
time
in Waiting
l time
min
Time in
in
%
Transpo
days
Convers
waiting
rtation
ion time
time
time
Comments of the buyer
sending the sample to
buyer
sending to buying agency
Analysis of the fit of the
garment
decision making
sending back to the vendor
TOTAL
Reqisition for lab dips
from supplier
Making swatch card
sending to the supplier
making of lab dip
recipie making
knitting samples
Dyeing and finishing
packing and sending to the
exporter
TOTAL
Comments of the buyer
sending to buyer
Analysing the lab dips
tests if required
sending back to the vendor
TOTAL
Making purchase order
for bulk fabric
Costing of the fabric
rate/lead time discussions
with suppliers
making purchase order
sending to the supplier
1440
75
75
1440
2880
10005
77
976
41
12
2865
50
14
480
120
30
300
480
464
960
1440
15
15
1440
2880
9
480
311
Bulk
fabric
manufacturing
fabric
development
if
required
recipe making
yarn dyeing (if required)
Rewinding
knitting
dyeing (if applicable)
finishing
checking
packing
sending to the exporter
TOTAL
420
540
2880
120
3969
480
960
29
8991
65
Part -III
Non-value
Actual added time Waiting
time inin min
time in %
Conversion transportati Days waiting
time
on time
time
45
45
90
1814
94
1260
66
120
120
45
480
645
312
-30
45
480
525
3199
83
Part-IV
Non-value
value added (in min)
added time
Actual
in min.
Waiting
time in
time in %
transport
days
Conversion
waiting
ation
time
time
time
Photo shoot sample making
a-requisition making
6
tracing design into butter
15
paper
tracing design into garment 7
cutting of fabric
13
Embellishment
86
Embroidery
86
Sewing
16
Finishing
20
Packing
2
sending the sample to buying
house
TOTAL
251
cutting of fabric
preperatory for spreading
9
Spreading
57
marker making (manual)
29
Cutting
28
Order qty
2100
No of lays
18
TOTAL
2166
Embelishments
streaching the fabric in the1
45
45
184
38
1674
44
313
frame
making design on the fabric 2
beading work
78
TOTAL
170905
Embroidery
hand
embroidery
(if
applicable)
TOTAL
0
Sewing
Sewing of garments
15
TOTAL
31500
Finishing
thread cutting
3
Measurement checking
4
ironing
5
packing n tagging
4
TOTAL
34335
Packing
Inspection
packing into cartons
13
TOTAL
546
245609
18
4415
17
6900
85
16
813
11
414
43
14790
216
39768
38
Actual
no
of
(total
total
days
% waiting
None of the activities are
waiting time
conversion transporta
(not in
considered in critical path
time
time)
tion time
critical
path)
314