pearl academy of fashion

PRODUCTION PLANNING AND CONTROL SYSTEMS

KNITCRAFT APPARELS INTERNATIONAL PVT

LTD.

INTRODUCTION

Knitcraft started operations in 1985 as a fabric manufacturing company and later entered into garment manufacturing and exports. The Company is operating under the inspirational guidance of Mr. K.K. Khurana who firmly believes that growth is not only about numbers but also about the ability to satisfy customers for a continued period of time with top quality products and timely delivery.

Mr. K.K. Khurana is assisted by his sons Sanjay Khurana & Sandeep Khurana. Both are with technical back grounds and involved with the process starting from product development to final shipping.

With an effective presence in USA, Canada, Europe and South Africa and annual turnover of US $ 20 Million, the group has been growing steadily.

INFRASTRUCTURE

The Company is a vertically integrated unit with in-house facilities knitting, dyeing, mercerizing & embroidery.

Infrastructure Garment Manufacturing:-

Knitcraft manufactures garments in 2 facilities of 125000 sq. ft with 750 stitching machines & produces 2,50,000 pieces per month.

A third unit is being commissioned at Behrampur, Gurgaon. This building with two production floor in 90,000 sq. ft will add another 1,50,000 pieces per month to the capacity.

Infrastructure Fabric Manufacturing:-

Knitcraft have their own fabric knitting, dyeing & processing unit of 80,000 sq. ft with 10,000 kgs daily knitting capacity with 32 versatile knitting machines which are capable of making jerseys, stripes, jacquards, wrappers. fleece, interlock & much more. Dyeing is equipped with high temperature high pressure dyeing machines to dye 6,000 kg fabric per day. Mercerizing is equipped with a world class Mercerizer to Mercerize 8,000 kg of fabric per day.Full fabric finishing range to finish 10,000 kg per day. Sueding machine from Lafer has been added into unit

PRODUCTS

The company manufactures and exports almost all types of fine knit’s garments especially Men’s Polo T-shirts, Golf-shirts, Sweat shirts, Outerwear jackets, tees etc. The company specializes in men’s Polo mercerized shirts and golf shirts with the performance finishes like moisture wicking, anti stain, wrinkle free, wonder wash, anti bacterial, anti fade, low shrinkage etc. Another area of specialization of company is the ability to innovate micro-polyester blends with cotton which is generating tremendous interest from prestigious buyers. The company has also managed to successfully develop 100% polyester yarn dyed and piece dyed fabrics in house and is the first one in India to successfully ship almost one million pcs of Polo's in last 2 years with in house developed fabrics. Strong product development is the major key to company’s success which leads to produce better quality fabrics & designs looking at the interests of market.

As per records Knitcraft was largest consumer of mercerized yarn & pima yarns in India in 2007.

BRANDS ASSOCIATED

STRENGHTH OF IN HOUSE INFRASTRUCTURE

Knitting

Knitcraft has what it takes to be a complete enterprise to manufacture and export high end knitted garments. To begin with, it has own state-of-the-art facility to produce 10000 kg of knitted fabric daily on 32 latest circular knitting machines from Fukuhara, Japan.

These machines include-

Single jersey, fully electronic jacquard auto striper in 24 gg

Single jersey auto striper from 16 gg to 28 gg

Interlock auto stripers in 18 gg

Wrapper stripers with mini jacquard in 28 gg

Mini jacquards in 24 gg & 28 gg

Beside above machines, the company has multiple

basic machines in S/J, Fleece, Interlock/Rib etc

Flat knitting machines for making collars in 14 gg & 16 gg

Dyeing & Mercerizing:-

The company has in-house Dyeing and Mercerizing capacity of 10000 kgs per day. This is done on the latest machines including-

Mercerizing machines from Dornier Germany

High temperature & high pressure dyeing machines from Brazzoli, Italy

Micro sueding machine from Lafer, Italy

Relax Dryer and Hydro Squeezer from Santex Switzerland

Compactor from Tube-Tex, USA

STATE OF THE ART PRODUCTION FACILITY

Garmenting is where the actual product takes shape and gets the right look. Knitcraft has a state-of-the-art garment production facility in Gurgaon near India’s capital Delhi. This facility along with another facility situated near-by boast of 750 advanced machines from international brands like Juki & Pegasus

EMBROIDERY –THE STRENGTH OF KNITCRAFT

Embroidery is yet another in-house forte of Knitcraft. For Computerized embroidery Knitcraft has acquired 5 world’s best Barudan embroidery machines comprising 82 heads in total. Knitcraft understands the importance of embroidery on a garment since as a logo it is identity of the brand and as a design it adds value to the garment. So every single piece embroidered on these machines made is made to maintain the required look of the garment.

PRINTING CAPABILITIES

Knitcraft has in house panel printing with a total capacity of 3000 garment per day. Knitcraft has capability of doing prints like Crackle, plastisol, waster based prints, foil, flock printing etc. can be done in-house.

SOCIAL COMPLIANCE

Knitcraft has been compliant socially as well as for CT-PAT by all major customers like Polo Ralph Lauren, VF, Supreme Intl, Sears, Levi’s, etc. Recently the company had been certified by WRAP for customer Jockey.

BENEFITS WITH KNITCRAFT

The vertical integration of Knitcraft offers number of benefits to their customers like

Faster turnaround time of proto samples, sales samples. Shorter lead time for bulk production. Better control on quality of fabrics. Lesser minimums for piece dyed fabrics Competitive costing

KEY TO SUCCESS

The main key to company’s success is strong hold on product development & this is ensured by two ways. 1. The Research & Development teams in every department consists of strong technical people who have strong technical & analytical skills so that right & required product is delivered.2. The best of quality raw material is used in manufacturing since the company does not believe in cost cutting by compromising on the quality of material. Knitcraft source all of their yarns from India’s premier yarn supplier ‘Vardhman’ who is biggest quality yarn manufacturer in India

Knitcraft is proud of never ever losing a customer

FUTURE BUSINESS PLANS

Recently Knitcraft have very quickly gained experience and expertise in making heavily embroidered & distress washed product. This has encouraged Knitcraft to set up their own laundry unit with the initial capacity of above 8000 pcs/day which should be operational from March’10 onwards.To Extend the capability in fabric finishing a Stenter From Monfort, Germany being added into processing unit, which will build the strength to finish Polyester, lycra & cotton/ polyester fabrics.Company has plans to extend the knitting capacity by adding 5 more knitting machines in 2010. Dyeing Capacity is being enhanced by almost 75 tons/month from March’10 onwards. For extending our services to existing customers the Company is in process of setting up new production facility which will be operational by March’10. This will add a capacity of almost 150,000 units per month.

Question and Answers

Line Visualization and Evaluation

Q-1) Who is responsible in developing the samples?

A-1)It is the responsibility of the merchandiser to get the samples developed in an apparel manufacturing unit. It is the merchandiser who is completely responsible for the sourcing of the raw material and then converting this raw material into the final product as per the requirements of the buyers. The buyer give their own designs and styles both directly or through the buying houses with a tech pack which has all details about the style and design features along with the measurement block according to which they develop the pattern. Based on this pattern the merchandiser starts the development of the samples. Sample development has the following stages:

Prototype/fit Sample - On the basis of the style/design finalized and the measurements/block, the first sample they make is the prototype or they also call it the fit sample. Then this sample is sent to the buying house to get the approval from the buyer.

Size set samples - Once the fit/prototype sample is approved by the buyer the next sample made by them is the size set samples with the proper graded measurements. This is a representative for inspection, or show evidence of it meeting the requirements of shape, size, quality or way of being fitted, degree of precision with which each part is adjusted and adapted, and to be in proper place.

Pre production sample

Once the size sets are also approved the pre-production samples are made which are representations of what the actual production would look like. These samples are again sent for approvals to the buyers from the buying house before they start the bulk production.

Garment testing samples GTS

Sometimes the buyers ask for certain tests to be done on the fabric like rubbing test, color fastness test, pilling test, printing test, seam slipping test and asks for a report from them on the tests on the samples from the export house. They perform those tests which are asked by the buyer mostly on the actual fabric and sometimes on a close substitute fabric.

Top of production (TOP)

Once the bulk production has started the export house picks up few samples randomly (jumping samples) and send to the buyer through the buying house for reference.

If the sample is not approved then the buyer sends a comment sheet which is studied by the merchandiser and the sampling coordinator based on which all the amendments are done and a new sample is developed.

Q-2) After the sample is developed, who is involved in evaluating the sample?

A-2) The sample evaluation is done at three stages i.e.

a) Factoryb) Buying House c) Buyer

The evaluation of sample starts within the factory itself. Once the sample is made by the operator it is first evaluated by the sampling supervisor and if he approves the sample then it is forwarded to the merchandiser for further evaluation. The merchandiser matches the sample with the tech pack given by the buyer and makes the amendments if needed. After this the sample is sent to the buying house i.e. Triburg where the sample is cross checked with the tech pack and with all the lab test reports. If it seems ok to the buying house then this sample is sent to the buyer where the buyer evaluates it according to his requirements and if he wants some changes then he informs the buying house regarding the change and the buying house further informs the merchandiser of the export house to make such changes and again the same process of sample evaluation is repeated.

This whole process is very much concerned with the approval of sample. The sample is evaluated on each and every stage so that the buyer’s approval can be received in the first go because if the buyer rejects the sample then the entire process has to be repeated due to which there will be a lot of wastage of time.

Q-3) What is the role of the manufacturer in sample evaluation?

A-3)In sample evaluation the manufacturer plays a very major role. Basically the evaluation of sample is done so that the sample is made as per the buyers tech pack in order to get the buyers approval in the first go. It is during this sample evaluation where the manufacturer’s role comes i.e. if during sample evaluation if any changes are required then those changes can be made then and their only. This is basically done to reduce the wastage of time which will be involved in development of the same sample again. The role of manufacturer in sample evaluation is very important in every stage of sampling management i.e.

Proto Sample – In this sample the manufacturer checks the design and the aesthetics of the garment as per the latest trends and forecast.

Fit Sample – In this the buyer checks the fit of the garment on dummies and on live models. So in order to avoid rejections in these samples the manufacturer asks the buyer about what type of dummies are being used by them so that the manufacturer can check the fir in the factory itself on the same dummies. This is basically done to avoid the difference between the measurement used by the buyers and the manufacturer.

Size Set Sample – Many times the size set are not required by the buyer. Sometimes they can ask for such samples. Basically these samples are representation of one same design in different sizes. Many times the buyer may ask for jump size sets. The role of manufacturer is to ask the buyer that what kind of size set are required by them i.e. US, UK or European. Once the buyer tells the size segments then the manufacturer develops the samples in that size segments.

Pre Production Sample – This sample is also known as sealer sample. This shows that the sample has been approved by the buyer and now it is ready to go in for the production. In this the role of manufacturer is to get signed the sealer sample so that in any future problems or disagreements he can show the sealer sample to the buyer and resolve the issue.

Garment Test Sample – These samples have to be tested for all the quality measures like shrinkage, pilling, color bleeding, crocking etc. These tests have to be done in an ISO certified lab. In case if these samples after testing show a negative result then it is the duty of the manufacturer to overcome the loop holes due to which the results were negative.

Top of Production samples – The samples represents how the actual production will look alike. Basically this sample is taken out from first 10-15 pieces of the production. At this stage the manufacturer has to be very careful because at this stage rejection of the garment cannot be afforded.

Q-4) What are the advantages and disadvantages of getting a manufacturer involved in the sample evaluation?

A-4) Advantages of involving a manufacturer in sample evaluation:

Manufacturer can advise the buyer on the feasibility of the garment. The manufacturer can also advise on styling and embellishments which he is

capable of providing to the buyer. To keep a good reputation in front of the buyer. To avoid the cost involved in making the sample again To reduce the time and manpower which will be involved in making sample

again if not approved by the buyer In case any changes are required during evaluation of samples it can be

checked, changed and manipulated at that very moment without any hassles. To reduce the risk of rejection.

Disadvantages of involving a manufacturer in sample evaluation:

May lead to negotiations with the buyer regarding price and changes in the garment incase the garment is not feasible.

The buyer may have to compromise on various issues like for example if the buyer requires a particular embellishment like a crochet lace then the manufacture may keep his point stating the increase in lead time or increase in the price.

It might become a time consuming process because the buyer and the manufacture may have a different point of view for a particular design and this may include a lot of time.

Q-5 How important is it in getting manufacturer’s input in sample evaluation?

A-5 A manufacturer’s input is very vital in sample evaluation. It is the manufacturer who will tell that whether he is capable of manufacturing such a design, is the production of such a design feasible on large scale, are the embellishments which are being used on the garment feasible for large productions etc. Another input which the manufacturer will provide is that he may negotiate with the buyer on costing of manufacturing the garment depending on the complexity of the garment and may also ask for extra lead time with which the buyer may not completely agree and may have to compromise on some of his requirements. So in totality it is a better option to involve the manufacturer while sample evaluation so that at later stages issues causing conflict do not arise.

Overview of Supplier’s involvement in Product Development Process

Q-1) What are the goals of getting external businesses such as apparel manufactures or fabric mills into the product development process?

A-1) It is because one cannot just produce one set of garments all year around. You need new fabrics, newer products to keep your business grow and keep making profits in the industry. Sticking to one product can make your growth stagnant. For such a business it is very important to bring in innovations and creativity at regular intervals as per the trends so that whatever is being manufactured is up to date and is as per the liking of the customer. This will always help a business to grow and maintain a market for its products i.e. there will always be a customer who is willing to buy such a product. So with involvement of the external manufacturers or fabric mills new styles can be developed looking into new fabrics, silhouette’s, design etc.

Q-2) What was the criteria of selecting these parties?

A-2) Following are some necessary points kept in mind for selection:

a) Commitment of time – one of the major criteria of selection is the time commitment as every exporter has a schedule to follow as per the lead time so if the goods from external parties are not received on time then the entire order processing may suffer.

b) Credit – One of the major factor which the manufacturer keeps in mind while selecting these external parties is the credit period. In present scenario suppliers giving more credit period for payment are preferred because there are many other costs involved in the manufacturing business which cannot be compromised over these supplier payments.

c) Pricing – Pricing is another factor on the basis of which these external parties are selected. The party giving best price i.e. lowest price and the best quality is always preferred by the manufacturer because the manufacturer wants to cut his costs through these means and earn more profit.

d) Quality – Another important factor is the quality. The manufacturer does not compromise on the quality of a product he buys. The one who provides a better quality product is always the first preference of the manufacturer.

Q-4) What does it take for a company to create a successful business relationship?

A-4) The important first step in creating a connection with your work colleagues/partners is to understand each other’s differences. This allows the individuals to change their positions to that of compromise and negotiation. Communication is one of the most important part in a relationship. If business colleagues understand each other’s situation, working together is smooth and comfortable then it is easy to do business. The objectives of the supply chain and the performance measurements need to be understood in order to build the most effective supply chain. The cost of transportation would be of supplier. For knits, if it has gone for dyeing and printing, like for 1000 kgs it should not take more than 15 days. Suppliers company should have good reputation in terms of delivering the goods and the main policy of this company is that if supplier fails to meet the delivery date then 50% of the payment is to be paid by supplier and same goes for this export house if they do not pay the 75% after the goods have come in-house then they have to pay 50% of the total amount more.

Q-7) What types of information are shared with the business partner?

A-7) All the information related to order and production are shared with the business partner. This information includes:

a) Production Capacity – The manufacturer tells the production capacity to the buyer which assures the buyer that the manufacturer is capable of producing the quantities expected by him.

b) Lead Time – Lead Time is another information which a manufacturer and buyer share so that it becomes clear for both of them how to execute their further decisions like for manufacturer it will be – How to carry out production so that he delivers the product on the shipment date? and for buyer it would be like How he needs to distribute his goods in the market?

c) Shipment Date – The shipment date is another type of information which is shared which is important from the manufacturer’s point of view according to which he has to carry out the production.

d) Garment Tech-Pack – A tech pack is another thing which is shared between them based on which many negotiations take place on design, trims, pricing, fabric etc.

e) Packaging – Packaging is a major information which is shared between the two as different buyers have different packaging requirements, so the manufacturer must have a clear understanding of what kind of packaging the buyer is expecting.

f) Payment Terms – Payment terms is an important factor which is shared. The payment for a specific order is based on the discussions of buyer and the manufacturer for eg: a buyer and a manufacturer may agree on payment terms like 25% on order placement and remaining 75% after the order is received by the buyer.

Q-8) What are the mutual benefits for you and your suppliers?

A-8) Mutual Benefits for a healthy business:

1.Trust: Trust is a two way street that must be cultivated at all times. Trust

becomes important when times get tough.

2.Fairness and Honesty: Fair and honest partners will always win out in the long

run. Any short term gain realized by lying, cheating or taking advantage of a

partner will tarnish the long term relationship and destroy trust.

3.Mutual Benefit: Relationships need to provide benefits to both parties

4.Respect: Relationships are built on mutual respect. If you don’t respect a vendor

or supplier than the relationship will be doomed to fail.

If a business between vendor and supply do not share such values then it may

become very difficult for both the parties to carry out business in a healthy manner.

Many obstacles may spoil the relations between them as they have different

opinions towards the work.

Q-9) What types of network exist between you and the external companies in your

supply chain?

A-9) The network consists of 4 levels through which a manufacturer’s supply chain

works. The manufacturer can work according to his own requirements and

convenience following any level.

a) Zero Level – In this no middleman is involved and the raw material supplier

directly supplies the raw material to the factory.

b) First Level – A distributor is involved in the supply chain.

c) Second Level – In this the distributor as well as the wholesaler is involved in

the supply chain.

d) Third Level – In this level there are 5 people involved in the supply chain

i.e. starting from manufacturer, distributor, stockiest, wholesaler, retailer.

Q10) What similarities between parties are you looking for when establishing relationships?

A-10) Some of the similarities which will be looked upon are mentioned below:

1. Passion towards work – One of the similarity is that the external party must be

passionate towards work i.e. efficient and active towards the work.

2. Willingness to work together – The external parties must have a willingness to

work on healthy partnership basis.

3. Trust – One of the major concern is the trust. If there is trust then the business

can be done in an efficient way without any hassles which will result in better

returns in the business.

4. Good communication skills – Communication skills is another factor to be

looked upon. Good communication indirectly speaks about the background and the

profile of the company.

5. Creative and Innovative – The external parties must be creative and innovative

in the type of product they are supplying because in the modern day world changes

and innovations are very much welcomed by the consumer and no consumer wants

to buy a product with same designs and the concepts.

6. Experience – One must be experienced in the field of business as experience

really matters when the business is being done on a large scale. If one is

experienced then this experience act as a help to another when one is stuck on

some critical issue.

Q-11) What are the obstacles in establishing relationships?

A-11) Whenever it comes to a business, it is very important that you form relationships. You will need to create and keep relationships that will help you periodically throughout the life of your business. Building and keeping business relationships will help you succeed but damaging relationships or leaving poor and broken business relationships can hurt your business and your reputation. Remember that while trust is important in a relationship, you both have to give a little when you make the decision to work together. You cannot demand trust from someone when you have none to give of your own. There are ways to protect yourself, such as with contracts and legal agreements.