ENTERPRISE RESOURCE

PLANNING

IMPLEMENTATION OF ERP IN A GARMENT

INDUSTRY

SUBMITTED BY:

ANUPRIYA PAWAR

MOUMITA SINHA BISWAS

NEETESH KUMAR

SURYA PRAKASH

DFT 7
 NIFT CHENNAI

ENTERPRISE RESOURCE PLANNING:

ERP refers to Enterprise Resource Planning software. In general, ERP is an industry

term for the broad set of activities supported by multi-module application software
that help a manufacturer or other business manage the important parts of its
business, including product planning, parts purchasing, maintaining inventories,
interacting with suppliers, providing customer service, and tracking orders. Typically,
an ERP system uses or is integrated with a relational database system. In practice,
ERP does not live up to its acronym. It does not do much about planning or resource
planning.

FEATURES OF ERP

• Time study, operators planning, thread consumption based on operation, time

study variance report.

• Cut order plan, lay register, can pick and list the fabric pieces which will have
minimum end bit

• Automatic generation and printing of bundle tags

• Line-wise production scheduling

• Line bottleneck indication for balancing

• Employee efficiency, Line efficiency and Factory efficiency based on past

performance

• Complete quality control for production

• Off standard minutes monitored line-wise and employee-wise.

• Employee skill matrix report generated based on the past performance

• Machine maintenance, spare parts inventory and machine inventory

 • Comprehensive payroll module with card swiping feature for monthly, weekly
wages and piece rate

• statutory reporting

IMPLEMENTATION OF ERP IN APPAREL INDUSTRY

We are proposing the implementation of ERP in a company called Uni Style Image
Pvt Ltd, Okla, New Delhi.

It ia small scale apparel industry, producing garment for domestic and export market
as well.

NEED FOR ERP IN THE COMPANY:

• they are not able to keep a track with their fabric vendors which creates a
delay in production thus resulting in late orders

• The merchandiser has difficulty I pn tracking the production of various style

on the sewing floor.

• The production team does not have any connection with the marketing
department thus it creates problem for deciding the optimum quantity to
produce.

• The finishing department does not have a sink with the production department
due to which sudden loads come upon the finishing department.

• The production and cutting department are not connected to the fabric stores
so they have difficulty in planning as they do not know when the fabric is in
house.
 It attempts to integrate all departments and functions across a company onto a
single computer system that can serve all those departments’ particular needs. The
integration streamlines internal business processes and improves productivity of a
company.

In the present changing scenario the demand is consantly changing and the want for
more is increasing thus increasing the competition. To cope up with the competition
we need to keep our customers happy and satisfied and for this all are efforts and
processes should be efficient and ERP helps us doing that.

HOW WILL ERP HELP:

• Transparency of Information across the Enterprise with privilege of access

• Automatic BOM from Garment specification

• Automatic order Consolidation - Destination-wise, Category-wise,

Assortment-wise

• Automatic Process Sequence and program from garment specification

• Purchase approval system Costing / Budgeting link to purchase

• Automatic raw material calculation for work orders to units / vendors

• Detailed quality control - automatic debits for rejections, shortage, seconds,

excess billing

• Automatic packing list generation based on order link to inventory, exports

• Financial accounts linked to inventory, exports & payroll

• Style-wise profit and loss

• Card swipe user defined Payroll system, Automatic payslip , Statutory reports
generation

• Automatic time and action / alarm to prompt user activities, escalation to

higher authority for unexecuted activities

• Automatic email shooting to relevant persons for amendment of Orders, BoM,

Work Orders, etc.

• Takes very less time to implement

• Can handle Woven and Knit Apparel Industry, Fabric and Yarn Manufacture ,
Embroidery units

• Data security, cannot hack

• Scanning feature for storing images of garments, measurement charts, fabric,

trims, documents, employees, etc.

• Industry best practices incorporated. Implementing STAGE would bring the

organization very close to ISO Standards
• Multi-component garment order and BoM
• Adapted to Multi-currency, Multi-location requirements

• Company-wise financial year option

• Auto dissociation of balance stock after order closure

• UPC number generation for bar-coding / warehousing

• Sample tracking and approval follow-up

• Facility to archive database periodically.
 •

BENEFITS OF ERP:

ERP software for apparel industry provides manufacturing, distribution and supply
chain management. It can help with increasing capacity by reducing throughput time,
reducing production lead times, reducing cycle time, reducing costs, increasing
flexibility, reducing inventory, and increasing performance of your company. Select a
cost effective and industry specific software that meets the need of apparel
manufacturing.

An ideal ERP software for garment and apparel company have following modules
integration – product development, inventory management, merchandising, exports,
planning, finance, payroll, purchase and production. It should be streamline the
whole process in apparel manufacturing. Its workflow system should provide better
business process management capability for quicker response to customer
requirements.

After implementing software you can provide lower prices, better quality and quicker
delivery to retailers and consumers. It provides the correct information to the correct
people at the correct time anywhere in the world, enabling you to get better output,
improve decision making and promote business communication between
employees, customers and suppliers. It reduces paper work, eliminate duplicate
entry, automate operational tasks and provide better platform to access information.

Integrated software can save significant time. ERP software for apparel and
garment has the ability to be customized to the extent that screens can be
remodeled, fields can be edited and the architecture modified through progressive
installation processes. It can also be operated in a secure, web-based platform.
Some software have translated into several languages including, English, Chinese,
Portugal, French, German, etc and provide better communication in international
market.

Employee can access data from anywhere if he has given a right to access. He gets
all information on a click of a button. He can take decision on information based. To
obtain the most from the ERP software, you have to get employees to adopt the
work methods outlined in the software. If the employees do not agree with the
method and the system has no or less flexibility to be customized, projects will be
failed.

• ERP integrates all aspects of the business processes including: manufacturing,

design, customer services, financial, sales and distribution. By integrating business
processes and people anywhere in your company, you can enjoy more efficient work
flow and improved productivity.

• Nowadays, retailers and consumers push for lower prices, better quality and
quicker delivery. ERP implementation shows your determination to head for
those direction. Confidence of your business partners and consumers will be
increased.
• ERP provides the right information to the right people at the right time
anywhere in the world, enabling you to improve productivity, enhance
decision making and promote communication between coworkers, customers
and vendors
• For better ERP software, it helps to reduce or eliminate duplicate work, and
automates operational tasks and provide easy access to information. ERP,
therefore, can deliver significant time savings.
• Advanced ERP software has the ability to be customized to the extent that
screens can be remodeled, fields can be edited and the architecture modified
through progressive installation processes. In addition, advanced ERP
software can be operated in a secured, web-based environment. These
features provides flexibility and convenience in implementation and operation.
• Some multi-lingual ERP software can perform automatic translation enables
almost every style detail to be viewed in several languages including English,
Chinese, and etc. It improves the effectiveness of communication.
• Manufacturing companies often find that multiple business units across the
company make the same widget using different methods and computer
systems. ERP standardizes the manufacturing processes and improve
quality.
 • ERP helps business process flow more smoothly and improves the efficiency
of fulfillment process. It leads to reduced invntory. Eventually, it decreases the
overall business cost.
• At its simplest level, ERP provides a way to integrate all your business
process. To get the most from the software, you have to get people inside
your company to adopt the work methods outlined in the software. If the
people do not agree with the method and the system has no flexibility to be
customized, ERP projects will be failed. Therefore, you should choose ERP
software wisely.

For example ERP helping in production planning

STAGE Production Planning Module seamlessly integrates with the rest of STAGE
ERP. The planning person can plan Merchandisers’ orders, cut & paste orders in
part or full from one line to another by easy drag and drop method.

No data entry required on the planning board. All data are extracted from STAGE
ERP dynamically and results are displayed automatically on the planning board.

Automatic Mail Shooting, integration with T & A and Expected Completion Report
are additional features of STAGE PPM.
TIME SAVED BY USING ERP

ACTIVITY MANUAL ERP REMARK’S

Order Entry 10 20 Merchandiser has
BOM Calculation 60-300 20 to key in full
BOM (depending on 2
details
Recalculation(If complexity)
Buyer changes 30-180 Automatic Email
order qty, Shooting
fabric / trims
spec ) Immediate Automatic Email
Passing PO Copy ?? Shooting
to Stores, Vendor,
Accounts
MIS Report for 2
Reviewing Status not possible ?? 2

of all Running 60?? Generate Report

25% and Mail
Styles
100% 10%
Replying to
100% 40%
Buyer's Queries
100%
Export - Import
Inventory
(Receipts, Full integration

QC with import,

Issues and Stock export, inventory

Reports) and payroll

Accounts
PROCESS FLOW
RETURN OF INVESTMENT

The ERP software for Apparel Manufacturing gives you the following Returns
on Investment

COST CONTROL

The ERP gives control on purchase through costing and budgeting so that overall
cost is within the quoted cost to buyer (unless authorized by appropriate person in
case of exceptions)Complete purchase control -ordering only what is required, using
existing stock before ordering more, purchase approvals based on value slab,
automatic prompt to purchase person whenever change in specification occurs (new
Fabric / Trims required.)

INVENTORY AND PAYMENT CONTROL

The ERP gives complete Inventory control – QC made compulsory, Reject excess
supply, automatic debits for shortage, rejection and seconds - link to Finance,
automatic and controlled issue for work orders.

LESS MANPOWER

The ERP gives complete integration of information across the enterprise, automatic
reporting. Clerical work and MIS Report preparation time greatly reduced.

ON TIME SHIPMENT

The ERP gives Time and Action control and automatic prompts push respective
persons to complete tasks / orders in time (saving air freight and cancellation)

IMPROVE PRODUCTIVITY

Implementing PROMAN, the Production Planning and Management software

identifies bottlenecks in production, controls QC better, forecasts completion of late
running styles, improves productivity and controls machine and spare parts
inventory.

GOODWILL OF THE BUYER

The ERP has been very successful in improving the way Apparel Business is done
and our clients are commanding very good respect with their buyers. Some of our
clients have grown very significantly due to effective handling of information.

PRICE - PERFORMANCE ADVANTAGE

The ERP offers excellent price performance advantage compared to other major
ERP solutions because it involves minimum customization and takes care of the
high degree of variables in apparel manufacturing. Low time and cost for
implementation namely 3 - 4 months.

LESS HARDWARE INVESTMENT

The ERP requires much less hardware configuration and investment than most other
ERP solutions.

LESS CONTRIBUTION OF MANAGEMENT TIME

The management’s time is very valuable. Most other ERPs take a very significant
time of management and users for deciding on customization and implementation
and have to go through a lot of trials. On the other hand ERP is a ready fit with
minimum customization and having highest number of successful installations in this
category.

BUSINESS PROCESS REENGINEERING & ISO

Since most of the best business practices are incorporated in STAGE, the ERP
software, its implementation for Apparel Manufacturing would indirectly do Business
Process Reengineering for the organization and make it ready for ISO certification.