Enhancing ProductivityThe Apparel Case Study

Presented by: Jehan JayasuriyaEconomic Summit: 10th July 2013

Industry BackgroundSri Lankan PerspectiveIndustry Size : $4BnDirect Employment: 300,000Percentage of Exports: 40%

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Generic Value Add

The Transition…

What is Productivity?

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The Elements…

Lean

Apparel Productivity: Building Blocks

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Product Design“Some people think design means how it looks. But of

course, if you dig deeper, it's really how it works” : Steve Jobs

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PerformanceComfort

Manufacturability Aesthetic Appeal

Technology“Every generation's breakthroughs are proven false by the next generation's technology”

Dan Brown

7Product Development Fabric Cutting Sewing

Energy Efficiency

People“The essence of competitiveness is liberated when we

make people believe what they do is important - and then

get out of their way while they do it”

Jack Welch

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Recognition

Competitiveness

EmpowermentEquality

Collaboration“Alone we can do so little; together we can do so much” : Helen Keller

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50m

400m

50 k

m

1.5

km

1.4

km

6 km 40 km

Proximity map of MAS Rapid Supply Chain

Partners

MAS Rapid case study•Built on strength of partnerships across the value chain•Revolutionized industry through crashing lead times by 80%•Minimum write downs for the customer•Minimum stockholding within supply chain, more productive space•Built on the principles of Lean

“A relentless barrage of “why’s” is the best way to prepare your mind to pierce the clouded veil of thinking caused by the status quo. Use it often.” : Shigeo Shingo

Achievements in selected key metrics through MOS•Reduced total inventory levels by 26%•Space saving leading to freeing up capacity – 73,000 sq.ft•Reduction in style change over time from 18 hrs to 3hrs•Reduction in Raw Material write offs by 48%•Reduction in cost per hour•Reduction in dock to dock time from 58 days to 25 days

Lean Principles

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• Productivity is no longer about output, the main focus should be on value• Productivity starts well before the product is in the factory. Design is the make or break of productivity• Adopt new technologies fast or risk being left behind• People are the most critical enabler of productivity in apparel. Culture is what drives them. Invest in it.• Optimum productivity cannot be derived in isolation. It only happens when the whole value chain comes together• The true potential of lean can only be seen when instilled across all functions of the value chain

Synopsis

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