Professional Documents
Culture Documents
Page No i ii iii iv 1 6 10 11 11 13 16 44 61 72 73 73 74
LIST OF FIGURES
FIGURE NO. FIGURE TITLE PAGE NO.
MYERS THEORY ON
MERCHANDISING.
17 21 22 26 42 48 52
MERCHANDISING WORK FLOW MERCHANDISING PROCESS FLOW WORK FLOW OF SAMPLING NETWORK
DIAGRAM GRAHICAL REPRESENTATION OF T&A GRAPHICAL REPRESENTATION OF MONTHLY SAMPLING
PRODUCTION
55 65 67
ii
LIST OF TABLES
SL. NO.
TABLE TITLE
PAGE NO.
TIME AND ACTION CALENDER FORMAT T&A CHART MONTHLY SAMPLING PRODUCTION CHART-JULY10
CAD IMPLEMENTATION COST TABLE CAD IMPLEMENTATION COST TABLE PAY BACK PERIOD TABLE
35 45 51 60 69 71
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EXECUTIVE SUMMARY
The study was undertaken principally to analyze the merchandising process and to
understand the internal weakness and flaws of the company there by finding out the
internal problems of the organization. Further, focusing into the major reasons for
the problems and coming up with some practical suggestions to overcome the problem
to an extent.
The study is carried out in GOGO Internationals Bangalore unit. They are capable
of producing around 12000 pieces of garments per day. They have a central planning
and control cell which is responsible for planning and making time and action
calendars for all the orders they receive. Further, it will be forwarded to
merchandisers for the order execution as per the planned dates. It was found out
that there is a lot of variation happening in the planned and actual T&As. Reasons
for the delays are found out and analyzed during the study. This study is an effort
to reduce the delay in pre-production activity as it is crucial, because the pre-
production delays can affect the further production process a.
If the company can find out the major reasons for the delays and try to get some
practical solution for it, then it will be helpful for the smooth running of the
whole merchandising process and goods can be delivered as per the planned date. In
order to find a way out from this problem this study has been done.
As an initial step, the study gave more focus on the thorough study on
merchandising process and T&A of various orders. Then the study moves towards
analyzing and finding out the reasons and causes for the problem and comes up with
acceptable practical solutions and iv
suggestions. The collected data have been classified and tabulated. Simple tables
have been prepared and liberally used to exhibit the classified data to provide
easy and better understanding of the study.
This study will provide significant inputs to the industry peoples as well as
academicians towards unleashing the lead time of the Indian garment industry and
enable the industry to realize its rightful place in the global economic space. The
goal of the apparel industry is not delivering within the original cost and
expected time estimates but the impetus is now on shrinking the existing lead times
in order to compete with the international supply chain standards.
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CHAPTER-1
INTRODUCTION
The textile and garment industry is booming in India, especially after elimination
of the global quota system. Presently India is exporting garments to more than 100
countries including US, EU, Latin America, and Middle East. The main competitors of
India are countries like China, Korea, Pakistan, Bangladesh, Malaysia, and Sri-
Lanka.
The Indian garment industry is gaining ground in the world market at breakneck
speed, but still not flourished at its fullest extent. Although the resources are
available plentiful with a powerful foundation of fabric and spinning sector to
support. The key factors behind this are low technological development, lower
output, cut throat competition, high raw material cost, inadequate infrastructure,
traditional productivity, unfavorable regulatory policies, and globalization
impact. However, there is a fair list of the producers, suppliers, and exporters
that are fully acknowledged with regulatory policies and formalities, international
marketing policies and procedures. The only concern is in executing their
productivity initiatives, and meeting with order deadlines.
Now days, major companies are adopting merchandising concepts, which comply with
all procedures to execute and dispatch the shipment on time, considering quality,
cost and time. Merchandisers are serious in the success of any garment retail
business.
1
They provide the right products at the right time, enabling a company to match with
latest market trends and meet the market demand. In the merchandising concept, time
management is a gig to manage one's time properly, so he can focus on value adding
actions.
Today's garment merchandisers have to move with frequent changes in demand and the
developing technologies utilized in manufacturing and production. To find out
customer requirements, they regularly visit retail outlets, and come up with latest
updates from frontline staff. In order to keep an eye on developments in sourcing,
site visits are made every week to mainland factories to meet suppliers and study
production.
Merchandiser has to manage every single production schedule and order route card
that helps to follow-up the execution in the planned way. It is expected to be
acknowledged of the various descriptions like: design, no. of modules, no. of
operators, how many processes, date of dispatch, quantity, output capacity, and
deadlines in the schedules.
The sub-ordinates are normally assigned to follow-up with execution of the plan.
Merchandiser plans the activities depending on the essentials or non-essentials,
and top priority are given to the most essential tasks. This is customary that the
essential activities are handled personally or with the support of junior
merchandisers/sub-ordinates.
To get updated on the current status on the order, the route cards should be
utilized. The latest status can be fed into the computers. In case, the buyer ask
for the goods prior
3
to the deadline, then merchandiser has to reorganize the schedules to accomplish
tasks, output capacity, no. of pieces to be produced daily, substitute
arrangements, time availability, supply time, scheduling critical ratio, etc.
The merchandiser should know about the dearth of any commodity such as fabric,
yarn, etc. from the beginning. Actions should be taken immediately to arrange
required materials, after discovering the shortage. It is expected that the
merchandisers should verify quality of the goods prior to execution of the order.
If the material is found unavailable, the superior should be informed about the
concern.
Apart from the above mention procedures, merchandiser has to assign subordinates to
help him in the order execution, and direct the procedures. He has to revise his
knowledge from time-to-time to know current market trends. To record preferences
for all the planned activities, use daily or time log systems.
The Merchandiser should find out exact reasons for time consumption. It is
necessary to keep record of time value and keeping it safe, as it is going to be
shared with concerned parties/buyers. It is certain that merchandising jobs need
huge time planning.
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1.2 COMPANY PROFILE
RANGE OF GARMENTS:
o Knitted garments have been the forte of GOGO, however recently GOGO has ventured
into the production of woven garments. o o In knit they produce men, ladies and
children garments. The range includes casual wear, sweater, sports wear, active
wear, night wear and high fashioned boutique garments.
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MARKETS AND CLIENTS:
o o o GOGO enjoys a clientele that spans not only countries but also continents. It
exports across the globe to countries in Europe, America, Australia and Asia.
GOGOs customer base gives immense pride and motivates to standards at sky level
always o Some of their best customers are listed along: Kids wear: Gymboree,
Disney, Barbie Women: Marks & Spencer, by design, Mervyns, united colors of
Benetton, exit, replay etc. Men: VF corp., lee, wrangler, jack and Jones,
quicksilver, replay, Steve and Barrys etc. Apart from above GOGO also work with
leading sports wear and active wear labels such as NFL, Harley Davidson, mountain
warehouse etc.
EMBROIDERY:
o A large part of Gogos production is fashion oriented and therefore the
embroidery department is very prominent. It has facilities for both computerized
and hand embroidery. o Computerized embroidery machines are capable of producing
about 10,000 pieces per day.
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INFRASTRUCTURE:
o o A strong infrastructure is a backbone of a strong production base. GOGO has
made Bangalore its head office which means which is the hub for manufacturing
facilities as well as it centralized departments like shipping, quality control,
designing, sampling, embroidery, computer systems and accounts. o o o o It also has
office in Delhi, Ludhiana, Mumbai and Tirupur. It employs over 3000 people all
across its factories and office. Total area covered under production is to the tune
of 4,00,000 sq.ft All factories are modern with state of the art machinery and have
the relevant social, technical and administrative compliance. o An integrated
modern ERP program links all the factories and office, and also links the function
of merchandising, production, designing, inventory and shipment. o The management
of GOGO has recognized the need for expansion and has explored the various
industrial areas open for investment. From among these GOGO has chosen to expand
its plant at Hassan, where government has started an SEZ (special economic zone)
for the textile industry. o On completion of this project, Gogos production
capacity is expected to grow from 10 million to 35 million garments per annum. The
factory and processing plant will be spread across 1 million sq. ft., the
processing capacity will be 25,000 lbs per day.
8
o
The same campus will have a fully equipped laundry, embroidery and printing. In
addition to the integrated production facilities, Hassan will also have a dedicated
training center and knitting plants.
PROCESS HOUSE:
o In 1995 the need to be vertical made Gogo start its own processing plant in
Bangalore. o o o o The modern plant has latest machinery from Italy, America, UK
and turkey. The plant has facilities for knit dying, printing, compacting etc. The
recent addition is a garment dying and washing plant. The plant includes a
sophisticated lab for all their research, developing and testing. o A reverse
osmosis plant, one of the first few in textile industry, ensures clean environment.
DESIGNING:
o o Many of Gogos clients are fashion houses that set trends. To cater the need of
its buyers Gogo has a qualified design and development department. o Creativity is
given freedom.
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1.3 NEED OF THE STUDY
Execution and delivery of goods as per the merchandising plan always gives an edge
for the company in current cut throat competition.
Delay in any of the process can adversely affect the further processes and it is
observed that there are delays happening in the merchandising work process in GOGO
INTERNATIONAL.
Further, the study gives focus on various internal causes, affects and suggestions
to avoid delay in work process.
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1.4 OBJECTIVE OF THE STUDY
To analyze merchandising process in GOGO INTERNATIONAL. Identifying various
internal issues, weakness, and flaws in the current practices. Analyzing and
finding out the ways of improvement of efficiency and effectiveness of
merchandising process.
11
The following are the scope of the study. This study is an effort to reduce the
delay in merchandising process in apparel manufacturing and exporting company.
Reasons for the problem are found out as per the analysis made on the T&A and the
suggestions are made related to the findings. The study will help the
organization (Gogo international) to reduce the delay in merchandising process by
identifying and rectifying some of the causes of delay.
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CHAPTER-2
RESEARCH METHODOLOGY
Primary data:
13
Secondary data:
Sample size:
Time and action calendar (T&A) prepared for various styles has been taken as
samples for the study. Four samples (styles) were randomly taken from the total of
30 samples observed.
Research is being initiated and frame worked after going through various library
books, journals, company news and knowledge bases across internet.
Presentation and interpretation of data: The collected data have been classified
and tabulated. Simple tables have been
14
been liberally used to exhibit the classified data to provide easy and better
understanding of the study.
15
CHAPTER-3 LITERATURE REVIEW
3.1 MERCHANDISING
The term merchandising means simply to buy and sell commodities for a profit. The
role of merchandising varies depending upon whether it is performed in retail or
manufacturing context, Merchandising involves the conceptualization, development,
procurement of raw materials, sourcing of production and delivery of product to
buyers. The merchandiser must combine logical and analytical thinking with
initiative and expressive creativity.
16
As per the below figure the merchandiser must have the capability of utilizing the
integrated activity of right brain and left brain functions to attain both
analytical and creative thought process. The merchandiser must be able to
rigorously plan and control the functions involved in developing. Products,
sourcing it and getting it to the customer on time.
capable styling and production or selecting and buying, and effective selling. By
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this definition, the primary mission of todays merchandisers seems unchanged. They
continue to play an important role in the exchange process by providing products
for consumption.
18
o
Basing upon the existing infrastructure, quality norms and capabilities of the
plant the merchandiser sources orders across the markets and submits a probable
costing sheet to the buyer. If the buyer finds the plant compatible with its
compliance with the costing being appropriate to the merchandise, the order is
confirmed.
Sometimes orders are confirmed after a few sample pieces are seen by the buyer. The
sample pieces are sent and the comments, feed back is collected by the merchandiser
and the necessary changes are conveyed to the concerned personnel.
Coordinates and tracks the sourcing activities and makes sure that all the raw
materials are delivered on time.
Once the order is executed and the merchandise is dispatched, the merchandiser
takes care of the post shipment comments and tries to maintain a long term
relationship with the buyer.
meeting with suppliers and managing the distribution of stock, possibly negotiating
cost prices with suppliers;
Identifying production and supply difficulties and dealing with them as and when
they occur.
Requisition of trims and fabrics from CPC, who approves of the quantity requested
for.
19
o
A pre production meeting is held in units one day after the package is sent to the
unit. The internal PPM is held only among factory members to discuss the style,
trims, construction etc. if there are further clarifications, an external PPM is
held with the Q.C, merchandiser, and buyer.
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3.3 MERCHANDISING WORKFLOW
Obtain order
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3.4 MERCHANDISING PROCESS FLOW
Development sample Send for approval to buyer Fit sample Send for approval to buyer
Pre production sample Send to buyer (order conformation) Marker development Fabric
sourcing Preparation of Job file File forwarded to production merchandiser Order
tracking (WIP till shipment)
(If no)
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3.5.1
Order enquiry: This is the first stage in which the buyer will enquire with the
merchant about
the new order. 3.5.2 forwarding tech pack: When the order enquiry has been done
then the buyer will sent a tech pack or specification sheet to the merchant. Tech
pack includes all the details of a style and which includes the items as follows: o
o o o o 3.5.3 product style design measurements fabric style code surface
ornamentation details etc Product development: Once the tech pack is received by
the merchant. He will arrange the tech pack details in a format by dividing various
styles and its details. Then, he will advice the junior merchandiser about the
style and its details so that the junior can assist the sample coordinators and
gets the development samples ready from the sampling department. 3.5.4 Approval of
development samples: Once the development samples are ready, 2-3 samples are sent
to the buyer for approval. In the development sample the main objective is to
understand how the garment style looks with the specific details. So here samples
are made with the available fabric in store with closely resembles the exact
requirement. In
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development sample surface ornamentations and fit is followed as per the tech pack.
if some correction is to be done then the buyer will sent the correction details
and again the samples are made till it get approved. 3.5.5 Costing: Once the
development is made and approval is received from the buyer, then the costing is
done. It is done by calculating various costs incurred to make a garment style. it
consist of various factors like: o o o o o o o 3.5.6 fabric cost trims and
accessories cost CMT Washing or finishing cost Bank charges Buffer value
Miscellaneous costs like rejection cost, wastage etc. order placement: Once costing
is done and the same is accepted by the buyer then the buyer will place the order
with the required order quantity and other main details to the merchant 3.5.7
Fabric and trims ordering: Once the order placement is made by the buyer with the
required quantity then the merchandiser will place the order for required fabric as
per the color, GSM, weave etc which is required in the style. The merchant will
forward the
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requirement sheet to the purchase department they place orders with the suppliers.
3.5.8 Lab dip: By this time merchant will sent the lab dips to buyer. This includes
many shades of the color which the buyer is asked to make the garment. So the same
has to be approved by the buyer to finalize the color. 3.5.9 Fit sample: After
approval of development sample from buyer, fit sample is made. The sample is
usually made of the medium size to check the fit. All measurements are checked
correctly as per the specs. The buyer returns Fit approvals sheet which contains
all the actual measurements and required measurements and how much deviation has
occurred for the purpose of correction. This sample is made from original or if
thats not available, then in proxy fabric. 3 pieces are made, all of which are
sent to the buyer and sent back to merchandiser after approval. Once this is
approved the order is confirmed. 3.5.10 pre-production samples: Once the fit
samples are approved then the pre production samples or the red seal samples are
made. PP sample will have all the specific details of the style with the exact
fabric, color, trims, surface, ornamentations etc. so this is a main step where the
sample has to look exactly as per the buyers requirement. Around 2-3 samples (in 4
sizes each) are sent to buyer for the approval and buyer can advice the corrections
if required
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3.5.11 size set samples: From this stage onwards, samples are made in respective
units. Size set samples are made for the purpose of checking the different sizes of
the same style in terms of fit, measurements, styling etc. It is also made to check
whether the assigned unit is able to produce that style as per the specs. 3 sets
are made for all sizes. It is done in original fabric.
SAMPLING DEPARTMENT
DEVELOPMENT SAMPLE
BUYER COMMENTS
FIT SAMPLE
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3.5.1
Once all the samples are approved and all raw materials are ready in the store the
bulk production has to be started. Before that merchants will conduct a pre
production meeting with the production manager and other department heads to plan
the process, so that delay can be avoided. Here the merchants will discuss with the
production heads on how the production can be scheduled and done within the
required time. So this meeting is important and inevitable. 3.5.14 Forwarding of
production file to production planning and control: Production file is a document
which includes all the details of a particular style. This document is prepared by
the merchants. Production file is forwarded to CPC once the PP sample is approved,
along with the file merchants will forward the approved PP sample also. Finally the
same is forwarded to PPC after checking the file by the CPC. Some of the details in
the production file include the following items: measurements export
order sheet color details style description packing type print/embroidery
instructions
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job details for lectra and fabric order marker plan TNA order sheet 2D style
diagram and trims Packing information
3.5.15 Checking the availability of fabrics and trims: Once the file is received by
the PPC, they will check and study each and everything of the file and parallel
they will check the availability status of the fabric and trims in the store and
they will follow up the same if its not yet reached in house. 3.5.16 Checking the
surface ornamentation of the particular style: Surface ornamentation may include
embroidery, printing or appliqu and these are done as per the buyers requirement
so PPC will check the ornamentation details and plans according to that and
parallel arrange all the required things for the same.
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3.5.17 Checking the status of stitching materials in-house: Stitching materials are
those which is used for sewing like threads and accessories which assist production
so parallel they will do the arrangement for the stitching materials in-house.
3.5.18 Checking the patterns with master: Production file includes all the details
about the patterns and merchants will forward the original patterns along with the
production file to the PPC. Once they receive the patterns they will forward the
patterns to the pattern master and master will cross check the pattern with the
actual and confirms. 3.5.19 Grading and final cross check: Once everything is
checked and confirmed by the master then, the pattern is forwarded to the CAD
department for GRADING. Grading is a process of making different sizes from a basic
size. When the file is forwarded to PPC only one centre pattern will be provided
and grading is done for other sizes. Finally the graded pattern will be cross
checked and confirmed with the master. 3.5.20 Laying and cutting: Laying is a
process in which huge lot of fabric lots are laid flat in several plies as per the
marker plans length. Laying is done carefully without any wrinkles happening. Once
laying is done the patterns are laid on it as per the marker plan and the main
concern is to minimize wastage. The patterns are marked and the plies are cut. Band
knife and Straight
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knife cutting machines are used to cut the plies. Once the plies are cut, it is
separated and tied as bundles. 3.5.21 Garment wash: The next process is to wash the
cut pieces. The bundled pieces goes for specific washes as per the buyers
requirement. 3.5.22 Bit printing/appliqu/embroidery: When the garment wash is
finished then the bundles will be sent for printing/appliqu/embroidery if the
style demands. Surface ornamentation is done on cut pieces rather than in full
garment this is because it reduces the risk of spoiling the whole garment if some
defects occurred during printing or so, if defect happens in cut pieces that can be
replaced and less fabric wastage happens. 3.5.23 Loading in line: When surface
ornamentation is done on cut pieces then, the whole bundles moves to the sewing
lines as per the plan. Here bundles are loaded to each worker as per his work and
the sewing process moves from one end to other end where the whole garment is
stitched. One worker does the same job always say, if a workers job is to stitch a
collar with collar bone then he does the same always when he receives the materials
moves from his co-worker after he completes his part. Like this sewing happens in a
chain format.
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3.5.24 Finishing: Once the whole garment is stitched and collected in the end of
the line then the same will be forwarded to the finishing section where, workers
will do the finishing of the garment like Checking: here the whole garment is
checked. Trimming: trimming is the process in which all the protruding threads are
cut and gives a good appearance to the garment Ironing: in this process steam
iron is given on the garment to avoid wrinkles. Packing: it is the process in which
the garment is folded and packed in the polythene covers. 3.5.25 Dispatch: Dispatch
is the end process in which the garments are packed in the cartons and shipped.
There are so many procedures and documents which have to be checked and processed
when the goods are moved out of the factory.
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3.6 QUALITY CHECKING IN VARIOUS STAGES OF PRODUCTION:
3.7 SOME IMPORTANT DOCUMENTS WHICH THE MERCHANDISER IS REQUIRED TO DRAFT ARE:
Production Order: There is a P.O for ever single style of every buyer. The
Production Order is
a form that communicates all the details required by the Production Planning
department in order to generate a loading plan. The merchandising department issues
a PO for every fabric that is to be processed. - It contains style number, style
description, order quantity, sizes, quantity for each size, fabric consumption,
interlining details, trims description, packing instructions, label specs etc.
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From the production order, the quantity of fabric and trims is calculated for a
single unit, and this is multiplied into the number of shirts being produced in the
style. These quantities are issued as a Bill of Materials for various trims such as
buttons, threads, collarbones and cuff links. BOMs are also produced for packing
materials and wash care labels. These are issued to the trims store. Accordingly
the store issues the required amount of trims. Each BOM is identified by its issue
number and date. A copy of these above details is maintained by the accounts
department for the purpose of costing.
Tech Pack:
This is the file which is considered the most important during the execution of an
order. It contains all the relevant technical information regarding the style
fabric process, tolerances, interlining details, the setting of various machines
for the style processing. - There are information regarding all departments i.e.
for cutting, documents like marker planning, consumption etc; for sewing,
construction details, measurements, etc. -Even comments from buyers during sourcing
and sampling stage are recorded to clarify any doubts and mistakes. -This tech pack
along with the PO file is transferred to all the sections while the style is passed
on from section to section.
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Order status report: This is a report in which all the styles and its various
activities are updated
in an excel sheet. This is maintained by the senior merchants so that he can easily
track the current status of a particular style. The status information is given by
the merchants and it is updated once in a week.
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There is a usual format maintained for T&A using spreadsheet. Once when an order is
placed then the merchandiser will forward the tech pack to the CPC and on that
basis the T&A is prepared by the CPC and the same will be sent back to the
merchandiser, which includes on which date the particular activity should be
started and ended so as to make the goods ready for shipment on ex-factory date.
Most of the time there happens many reworking and negotiations done on T&A between
the CPC and merchandisers due to many delays and uncertain things happening on the
way of execution of orders.
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Quantity Allocation Lectra and ERP entry Lab Dip Approval (sent to buyer) Lab Dip
Approval (receive from buyer) Yarn in-house Griege fabric in house date Finish
Fabric in-house Bulk fabric approval (sent to buyer) Bulk fabric approval (receive
from buyer) Further process fabric Dying Print/Embroidery. strike off (sent to
buyer) Print/Embroidery. strike off (received from buyer) Fit sample approval (sent
to buyer) Fit sample approval (receive from buyer) PP sample submission PP sample
approval to receive Size set sample approval (sent to buyer) Size set sample
approval (receive from buyer)
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Stitching accessories in-house Packing accessories in-house Cutting start date
Washing start date Bit print start date Bit Embroidery start date Stitching start
date Garment wash start date Washing end date Bit print end date Bit Embroidery end
date Stitching end date Garment wash end date Final inspection Ex-factory Delivery
date
The insistence on shorter lead times and pressure on the margins of export and
other units has grown over time, along with the need to stick to delivery schedules
strictly and to improve quality to grow in an exceedingly competitive market.
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Despite all the possible roadblocks, the fact remains that timely deliveries and
short leads times are on the top of the buyers agendas. The competitive scenario
is changing extremely rapidly. Companies must be prepared to make the radical
change of planning and managing their processes on software-aided tools, or be
prepared to be left behind in the race.
The current method used in the company is T&A (time and action) which captures the
two main concerns of buyers, merchandisers in buying offices and manufacturers:
Are we on time? (The frequent answer is, "Mostly not!") Are all the action
steps happening the way they should? (Again, "Mostly not!")
It is also a common practice to prepare two TNAs; one with a few main important
activities that were suggested by the buyer, while the other one with more number
of in-between activities (to keep tab on in-house activities in micro details) and
pre-poned target dates (buffer time) For example, TNA suggested by buyer may have
only 4 target dates, i.e. fit sample approval date, size set approval date, lab dip
approval date and planned cut date (PCD). While a TNA created by a manufacturing
organization (for same order) may have target dates for total 15-20 activities:
like pattern approval, grading approval, dispatch dates for all approvals, loading
for bulk dyeing, receipt of fabric and accessories, etc.
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The fashion industry's processes, indeed any multi-step process, can be broken down
like this and re-built into a time-and-action calendar, that tells you how long
your process is expected to take, and when you should be completing each step so
that you complete the entire process in time.
In simple terms a "time and action calendar" is something that captures several
work-steps, the deadlines for completing those work-steps and also capture, as much
as feasible, the time when the work-steps have actually been completed. Typically,
for easy reference, the steps would have been mentioned in the sequence that they
are supposed to start, or in the sequence in which they are expected to be
completed.
In brief, there are three main problems with this simplistic notion of T&A
calendars Problem # 1 Delays Unexpected delays in the existing activities, or
addition of new work steps due to some problem occurring in the chain. Discovering
it too late that stocks of the lace that was supposed to go into the peasant blouse
are not enough and we need to wait a week before the balance quantity becomes
available. Or the rib fabric needed urgently for the Navy Blue T-shirt is
available, but only in light shades which will need to be re-dyed and we lose two
weeks. Delay happens but the customers now have become more impatient and less
tolerant. By putting in place a clear time and action calendar, we should be able
39
to know when each activity is supposed to be begun and ended, and delays should be
handled easily. FACT: most factories miss the first agreed target shipment date on
50-80% of their orders, and many end up with 30-40% late shipments despite
extension of delivery dates.
Problem #2-- Delays and Solutions are not Straightforward The second problem that
adds a layer of complexity is that very often the "cause-and-effect" relationship
between a delay in one activity and the total delay.As explained in the previous
section about critical path, this is the sequence which determines the total lead
time of the process. The same delay in different activities does not have the same
impact on the end-result. There is an impact on the end-result only when the delays
happen in an activity that is on the critical path.This fact is not accounted for
in T&A calanders, this is why, when having lost a week in one of the early
activities in an order and the order is running late after trying and speeding up a
later activity doesn't seem to work! That is because, while the delayed activity is
on the critical path, the work-step that one is trying to speed up is not on the
critical path. Hence your corrective action produces no result.
Problem # 3 - Many Hands Dependency between the activities already exists - some
activities cannot be started unless an earlier activity is completed. Take for
example the instance of a print
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strike-off approval. A factory will not place the confirmed order for the bulk
fabric, unless the strike-off has been approved. Or, looking earlier, the buyer
cannot approve the strike-off, unless it has been sent to him by the factory or the
mill. Delegation or working in a team / organization also creates dependency on
other people. This interdependence and mutual responsibility is something that is
almost entirely missed out when one is dealing with a table of task names and dates
in an Excel spreadsheet. Ignoring the interdependence, in turn, creates more
problems.
Problem # 4 paradox of plenty A typical apparel order broken down properly has many
more work-steps. These could be 35-40 at the very least, up to 150 in some cases.
Most people using Excel spreadsheets for T&A calendars list 15-25 critical points,
including the various major approvals, fabric receipt, cutting, finishing, packing,
etc. However, this obviously provides only a limited amount of visibility into what
is actually going on in the order. Following is a network diagram, consisting of
only 26 tasks. The tasks have been laid out in the logical connected sequence,
based on the dependency between them. Looks complex, doesn't it? And yet, each
merchandiser in a manufacturing organization is expected to handle 8-15 orders
simultaneously. We might have an average of 50 work steps if all orders are
properly analyzed and the process defined. That means 400-750 work-steps need to be
monitored by the merchandiser at any point in time.
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3.8.1.2 NETWORK DIAGRAM FOR A 26 STEP ORDER PLAN
Not just that, apart from some of the activities that are the merchandiser's direct
responsibility, most other activities are performed by other people within the same
company, or people in other companies. For example, in this 26-step example shown
above what has not been highlighted is the fact that these 26 steps require
coordination between 5 companies and 9-12 individual people across those companies.
This, then, is the paradox of plenty: o The better you are able to define the
process and break-down the order plan, the more the number of work-steps that you
end up monitoring. o The greater the number of orders, the more the work-steps that
need to be followed-through.
42
o
The more you actually work as a team, rather than in an individual capacity, the
more the number of interactions that need to be managed and followed-through, and
the higher the dependency on others to complete their activities on or before time.
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CHAPTER-4 ANALYSIS AND INTERPRETATIONS
In this study the analysis is based on: Time and action calendar (central
planning and control) Major delays happening in time and action plan (Delay
analysis) SWOT analysis on sampling department, which focuses more on: 1. Line
balancing 2. Structure on sampling department 3. Productivity in the area of
pattern making 4. Reference with TUKA CAD
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will forward a copy of tech pack to the planning cell. In turn the planning cell
will prepare the T&A by practically thinking on all the internal and external
problems and delays which may occur during the execution of that particular order.
Here analysis is done with the help of 4 orders and the focus is given on that
activity where more deviation has happened.
4.1.1 T&A CHART P*: planned date, A*: actual date TIME AND ACTION CALENDER KEY
ACTIVITIES Lab Dip Approval (sent to buyer) Lab Dip Approval (receive from buyer)
Yarn in-house Griege fabric in house date Finish Fabric inhouse Bulk fabric
ORDER 1
ORDER 2
ORDER 3
OREDR 4
P*
A*
P*
A*
P*
A*
P*
A*
2-12
5-12
2-12
3-12
2-12
2-12
2-12
2-12
16-12
10-12
12-12 2-12 12-12 22-12
13-12
14-12
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approval (sent to buyer) Bulk fabric approval (receive from buyer) Further process
fabric Print/Embroider y. strike off (sent to buyer) NA NA Print/Embroider y.
strike off (received from buyer) NA NA Fit sample approval (sent to buyer) 10-12
18-12 Fit sample approval (receive from buyer) 17-12 25-12 PP sample submission 28-
12 7-1 PP sample approval to receive 4-1 15-1 Size set sample approval (sent to
buyer) 7-1 25-1 Size set sample approval (receive from buyer) 10-1 30-1 Stitching
accessories inhouse 12-1 15-1 Packing accessories in8-1 16-1
3-12
3-12
3-12
3-12 NA
NA
6-12
7-12
6-12
5-12 NA
NA
10-12
14-12
10-12
13-12
10-12
14-12
17-12 28-12
20-12 31-12
17-12 28-12
22-12 30-12
17-12 28-12
24-12 5-1
4-1
7-1
4-1
8-1
4-1
13-1
7-1
11-1
7-1
11-1
7-1
16-1
10-1
15-1
10-1
15-1
10-1
20-1
12-1 8-1
12-1 8-1
12-1 8-1
12-1 10-1
12-1 8-1
12-1 9-1
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house Cutting start date Washing start date Bit print start date Bit Embroidery
start date Stitching start date Garment wash start date Washing end date Bit print
end date Bit Embroidery end date Stitching end date Garment wash end date Final
inspection Ex-factory Delivery date 11-1 15-1 NA NA 17-1 1-2 5-2 NA NA 8-2 11-1 15-
1 NA NA 17-1 16-1 21-1 NA NA 24-1 11-1 15-1 12-1 12-1 17-1 16-1 22-1 11-1 15-1 21-1
25-1 NA NA 27-1
3-2
22-2
3-2
9-2
7-2
3-2
8-2 NA NA 18-2
7-2
28-2
7-2
14-2
7-2
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4.1.1.1 GRAPHICAL REPRESENTATION OF T&A
INTERPRETAION:
As per the above graph we can understand that there is a lot of deviation happened
in planned and actual dates in time and action plan. If we divide the key
activities in the graph into two sections i.e. pre-production activities and
production activities then we can categorize them into two sections, they are:
Pre- production activities and delays fit sample (23 days) PP sample (27 days)
Production activities and delays cutting start date (40 days) stitching start date
(43 days)
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size set sample (40 days)
stitching end date (36 days) final inspection (38 days) ex-factory date (31 days)
If we notice, more delay has happened in production activities but the number of
days it has taken is just normal. So the production activities are delayed due to
the delay in pre- production activities i.e., sampling delay. So the delays can be
controlled only when the company focuses more on the reasons of samples getting
delayed with suitable preventive measures.
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Ironing
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4.3 ANALYSIS ON SAMPLING LINE BALANCING:
There are 20 lines having 6 machines each. The productions of samples are done in
such a way that each line is allocated with few buyers and that particular line
will produce samples only for its concerned buyers. The line supervisors make sure
that the samples are loaded as per the plan and the workers are performing it well.
The following are the details of line allocation and its production for the month
of July 2010:
BUYERS
LINE A,B,C
LINE D,E,F C&A VETIR COOP MGB LTB TKO GRUPPU COIN 801
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4.3.2 GRAPHICAL REPRESENTATION OF MONTHLY SAMPLING PRODUCTION
INTERPRETATION:
4.3.3 The Main Reasons for the Variation in the Graph The sampling department
includes 20 lines and 120 machines i.e., 6 machines per line. The Graph shows how
much pieces a line produced for a month. When we observe
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there is a huge variation happening from one line to another. It shows that some
lines are loaded with more work and some are not. This deep variation in graph
shows ineffective planning of allocating work to various lines. Here 3 line are
combined and made into one group (like line A,B,C combined into one and D,E,F made
into another) and it is distributed to few buyers ( find the table 4.3.1 ). So each
line gives more priority to do the work of their buyers first. Even though they
load some other lines work when they have less work but this is not happening in
an effective way. If so, the graph will show a balanced line. This may be due to
various reasons like: The pressure from the merchants as they are concerned more
on their work so they resist allocating other buyers work load to their line.
There is a usual question comes into every line supervisors mind when they take
some other lines work we will get loaded fully when we receive new orders from
our buyers shortly, then everything will become a mess
So there are two main reasons for the ineffective allocation of work to various
lines, they are:
4.3.3.1 Improper planning: One of the other major reason is the lack of continuous
and practical planning regarding the allocation of work to various lines as per the
orders. Effectiveness of planning is the by product of a graph showing linearity,
i.e.; less variation in the graph. But graph 4.3.2 shows a huge variation happening
so it supports the statement.
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4.3.3.2 Improper control and monitoring leading to resistance to change: One of the
major reasons for the ineffectiveness in the line allocation is the improper
control and lack of monitoring. This leads to resistance to change, the employees
are not ready to accept change and they dont want to make changes in their day to
day work process by taking unnecessary workloads from other lines. This is because
they are not properly controlled and monitored by the top authority and this can be
rectified only if subordinates are answerable to the top authority for the work
done.
Sampling manager leads the sampling team and rest of the people executes the work.
The flow of information or communication is through the following ways:
Register reports (Daily, weekly and monthly) Telephones and direct conversation
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4.4.2 CURRENT SAMPLING DEPARTMENT STUCTURE
SAMPLE MANAGER
MERCHANDISER
SAMPLE COORDINATORS
PATTERN MASTERS
LINE SUPERVICORS
WORKERS
INTERPRETATION:
Sampling manager: He is person who leads the sampling team. All the reports
regarding production and quality and other reports and issues related to sampling
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has to go to him. He is the person who has to address the top management regarding
his departments efficiency, effectiveness etc and held responsible for very many
issues regarding sampling department. Merchandisers: Merchandisers involves in
the sampling process as their work schedules are affected and done in sampling
department. They make sure their samples are getting done on time and whether all
the required materials are there on time in the store for the work process.
Pattern masters: Their main work is to get the specification sheets from the
merchandising department and get the pattern work done for various styles and for
the buyer he is allocated for. Sample coordinators: Sample coordinators acts as
the intermediaries between the merchandiser and the sampling department. They are
the assistants to merchandisers and they get the details of a particular order and
guide pattern masters and other workers in the sampling department and get the work
done for the merchandisers. Line supervisors: line supervisors are allocated with
few lines and he guides the workers to work. They get the work details and
techniques from the sample coordinators or merchants or even from pattern masters.
Workers: They are the tailors who stitch the garment under the guidance of line
supervisors.
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The last figure shows the current structure of sampling department. Here the
sampling manager leads the team but merchandisers can also use their authority on
various people in the sampling department to get their work done. They personally
come to sampling unit and interact with the workers, pattern masters and so on.
On the other side pattern masters also controls and guides the work by
communicating with line supervisors, sample coordinators and even with
merchandisers.
6. Confusion
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4.5 ANALYSIS ON THE EFFICIENCY AND PRODUCTIVITY OF PATTERN MASTERS
There are 10 pattern masters and the total buyers are divided and allocated among
the 10 pattern masters. They get the style details from sample coordinators and
through the guidance of merchandisers and even sample coordinators the patterns are
made. Everything is manual and least application of CAD is done.
The pattern masters are paid in between 35000-40000 and its comparatively good as
per the work load they are in to.
As per the observation done for 2 months it is analyzed that around 5-7 pattern
styles are made by a pattern master per day after excluding all the break time,
errors, re-work, communication delay etc.
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4.6 ANALYSIS ON THE APPLICATION OF CAD SOFTWARE IN PATTERN MAKING: TUKATECH CAD,
USA
4.6.1 TUKATECH CAD Tukatech provides affordable fashion design and apparel product
development solutions to the worldwide apparel and sewn goods industry. Tukatech
quickly achieved world recognition with an innovative approach to streamlining the
fashion design, development and manufacturing processes through award winning
fashion software, patternmaking and virtual sample services, consulting, and
customer support. Their product mix begins with an innovative apparel CAD/CAM
software technology for pattern making, pattern grading, and marker making, and
extends to patented soft body dress forms, 3D virtual apparel prototyping software,
product lifecycle management, product data management, and hardware solutions.
They are the first and leading company in the world to offer apparel product
development outsourcing (APDO) as a service to the industry. They leverage their
expertise and leading technology to streamline pattern making, sample making, and
associated apparel development processes for apparel companies worldwide.
4.6.2 Productivity: Number of patterns made per day by the manual pattern
masters: 5-7 patterns Tuka claims : 15 patterns per day ( almost 3 times than
manual)
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4.6.3 Cad Implementation Cost table
1 Basic requirements (pattern making, grading & marker making 150000 ONWARDS
INTERPRETATION:
As per the productivity analysis of manual pattern making we can conclude that only
about 5-7 patterns can be made per day by a pattern master. On the other end CAD
can make around 15 patterns if the operator is efficient enough. As per the
analysis it is found out that each pattern master is earning a salary of 40000
rupees. So its always a question whether the output is sufficient enough or not if
we compare with the cost aspect.
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CHAPTER-5 FINDINGS AND SUGGESTIONS
The findings are made on the basis of analysis done on T&A, structure of sampling
department, productivity and cost factor of pattern making. Time and action is the
main analysis which helps to find out what is the main reason for total delay in
the planned T&A. from the T&A it is found out that the SAMPLING DELAY is the main
reason for the further delay in production and late delivery of goods. Due to the
reason for sampling delay more analysis and observation has been done on SAMPLING
DEPARTMANT and found out many problems and reasons for the delay.
From the analysis one can come to a point that there is a lot of reconstruction
required in the sampling department and sampling work method. There may be lot of
reasons and hidden causes for the samples getting delayed. But the root cause can
be found out only by a detailed study of sampling department work process. The
following are the findings to support the analysis and the main problem. Sampling
is a crucial process in which more focus must be given. Buyer may get disappointed
when the samples are frequently coming up with lot of errors and re work.
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5.1 FINDINGS ON SWOT ANALYSIS OF SAMPLING DEPARTMENT
Idle machines Idle workers Lack of monitoring Negative attitude of workers Lack of
flexibility Domination of pattern masters More work is wasted due to errors on
patterns and re-working on the same Misplacement of patterns made for past orders
More depended on pattern masters and less application of CAD Wastage More confusion
in the work end
Good capacity Sufficient workers and employees Experienced pattern masters Good
plant layout
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5.1.3 MAJOR KEY PROBLEMS
5.1.4 CAUSES:
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5.2 SUGGESTIONS
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5.2.1.1 SUGGESTED SAMPLING DEPARTMENT STRUCTURE
(SAPMLING PLANNING CELL)
SAMPLING MANAGER
COORDINATORS
PATTERN MASTER
LINE SUPERVICORS
WORKERS
The process goes like this............ Once the merchandiser receives the order he
has to book for the fabric, trims etc which is required for that particular style.
Parallel he can forward the spec sheet to the sampling manager and can brief him
the details. Once the fabric and all other required
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things are ready in the store, merchandiser has to get the signature from the store
manager showing that all the required materials and accessories are ready in the
store for the particular style. The signed document is forwarded to the sampling
manager and the sampling manager advices his assistants (coordinator) and pattern
master about the style. Sampling manager parallely plans how the line allocation
has to be made, here the lines are not allocated for particular buyers and all the
lines are combined and made flexible to load any style at any time as per the plan.
The merchandiser only communicate with the sampling manager and he is not suppose
to influence and use his power to change the workings of any sections in the unit
for getting his work done early. He can communicate with the pattern masters if the
situation demands or for any contingent situation. Here there is more control than
the current structure.
ADVANTAGES:
1. Less complexity 2. Unity of command 3. Full control in the hands of sampling
manager 4. Better planning and controlling can be done 5. It reduces the idle
machines and workers due to better planning 6. Effectiveness in communication 7.
Less confusion 8. Merchandiser can give more focus on other crucial activities as
the sampling manager can control the whole unit
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5.3 LINE ALLOCATION MUST BE DONE BY DIVIDING THE WHOLE QUANTITY AND BY DISTRIBUTING
TO VARIOUS LINES AS PER THE PLAN.
Currently each line is allocated with few buyers and each line will be loaded as
per the requirement of its allocated buyers. The main problem in this line
allocation plan is that some time few buyers will have lot of orders and few will
be having less, so this in turn will load some line with more work and few with
less work. This is the main reason for some machines and manpower sitting idle
without work. So sampling department must be made as a separate planning cell and
line balancing must be done flexible.
This variation in graph or the problem of some lines getting more work and few are
idle can be sort out by distributing the total work quantity equally to various
lines and planning must be done centrally. If all the lines are allocated with
somewhat equal quantity of work then, the problem of idle machines and workers can
be sorted out.
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ADVANTAGES
1. Idle machines can be utilized by equal distribution of work. 2. Idle workers
will be reduced due to the above reason 3. Better planning 4. More output with less
errors 5. Less delay 6. Maximum utilization of available recourses
5.4.1 Basic information about manual pattern making as per the analysis:
Number of pattern masters:10 Salary range: 35000-40000rs
5.4.2 Productivity:
Number of patterns made per day manually: 5-7 patterns As per the observation it
is found out that a pattern master can make 5-7 pattern styles per day.
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Tuka claims : 15 patterns per day On the other hand TUKA claims that their
productivity is around 15 patterns per day, its almost 3 times more than manual
pattern making.
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The following are the possibilities to collect back the invested amount.
Replacing 1 pattern masters MONTHS 1 2 3 4 CASH SAVINGS 40000 40000 40000 40000
CUMULATIVE CASH SAVINGS 40000 80000 120000 160000
Replacing 2 pattern masters MONTHS 1 2 3 4 CASH SAVINGS 80000 80000 80000 80000
CUMULATIVE CASH SAVINGS 80000 160000 240000 320000
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5.4.4.1 PAYBACK PERIOD AS PER THE ABOVE POSSIBILITIES
POSSIBILITY 1 2 3
ADVANTAGES:
1. Reduces cost (reduce cardboard sheet, chalk, markers, cello tapes etc) 2. Easy
to alter patterns and easy access if further reference required 3. Saves time and
reduce errors 4. Number of pattern masters can be reduced 5. By reducing the
pattern masters, monthly salary (35000-40000rs) can be saved 6. Due to the above
,the saved money can be compensated for the implementation cost of cad, thereby
reducing the payback period 7. It can increase the output per day
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CHAPTER-6
CONCLUSION
The study helped to understand the merchandising process and some of the crucial
areas of merchandising which can affect the smooth functioning of the whole
process. It gave more focus on the internal causes for the problem. Internal issues
and flaws are controllable factors as the solutions are in the hands of the
organization, but some external issues are uncontrollable and to an extend the
organization has to bear the after affects. The study lights up the areas of
technological advantage by replacing the manual work.
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LIMITATIONS OF THE STUDY The time for the project was restricted to two months as
the researcher has to deal with the entire process of a garment manufacturing
company especially this will take at least 5 months. The project was conducted
for a company situated in Bangalore, operating in export and domestic market. The
study may not show the complete picture of apparel industry; rather it will be
confined to a single company only.
As per the study the researcher has given more focus to the internal weaknesses and
issues of the organization which is leading to the problem i.e., the controllable
factors. Further, there can be many external issue and problems which can also act
as a hurdle for the smooth functioning of the merchandising planning and process.
Some of the external factors like,
Delay in fabric in house (Delay in yarn procurement, dying, knitting etc) Delay
from the suppliers end Logistic delay Plant location problem etc. So, the above
issues can also cause delay in work process. The study can be extended to find out
whether there are any external causes for the delay in work process or not, If yes
how far it affects the process efficiency.
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BIBLIOGRAPHY
Books: o Jermy A. Rosenau, Devid A. Wilson, Apparel Merchandising: The line starts
here, Fairchild, 2001. o Grace I. Kuntz, Merchandising: Theory, principle &
practices , Fairchild, 2000
Websites: o o o o
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