Welcome to the Welcome to the Quality and Productivity Quality and Productivity

SeminarSeminarHost ; Asif HussainAsif HussainSenior Technical Manager NS Hong Kong

1982

04/09/23 NSL Quality Management 3

Customer Mission StatementCustomer Mission Statement

To Deliver Beautifully Designed, excellent quality Clothing and

Home ware quickly, reliably and at Market Leading Prices.

As the No.1 Supplier it is our responsibility

“To fulfill and exceed the expectations of our

Customers”

Next Quality Expectations

This presentation is to ensure suppliers are fully aware that we ship quality products on time to meet or exceed our Customers expectations and within specified cost

This presentation is to ensure suppliers are fully aware that we ship quality products on time to

meet or exceed our Customers expectations and within specified cost

Over 500 Over 500 ShopsShopsOver 150 Overseas StoresOver 150 Overseas Stores

More than US$2 m Directory More than US$2 m Directory Customers Customers

www.next.co.uk

+20% GrowthOver Last Two Years

Strong Potential

For Continued Expansion

Customer Profile Customer Profile • 25-55 Years25-55 Years

• Single / Single / Family Family • Aspire to Designed Aspire to Designed ProductProduct

• Modern Modern ThinkingThinking

• StylishStylish

• Value & Quality ConsciousValue & Quality Conscious

US$780 million per annum

NS Global Sales NS Global Sales TurnoverTurnover

Opportunity!

NS HKG Sales NS HKG Sales TurnoverTurnoverUS$280 million per annum

Largest Sourcing Office

Far East Region

ChinaChina

Kazakhstan

Nepal

India

Pakistan

AfghanistanChina

Thailand

Far East RegionFar East RegionFar East RegionFar East Region

Sri Lanka

Bangladesh

Bhutan

Burma Laos

Vietnam

Cambodia

Taiwan

Korea

Japan

Russia

Buying OfficeBuying Office

VM OfficeVM Office

Sample RoomSample Room

WarehouseWarehouse

ProductionProduction

Quality HubQuality Hub

LaboratoryLaboratory

Shanghai

Donguaan

Fuyong

Hong Kong

Hong Kong ShanghaiDonguaan

Shenzhen

Design StudioDesign Studio

Bangkok

NSL Head OfficeNSL Head Office

Regional HQRegional HQ

The Role of NS and Our The Role of NS and Our SuppliersSuppliers

• Deliver Great Product • Deliver Great Value

• Sustain Margins• Deliver Great Service

• Deliver Best Lead-time

We have to win ALL of our We have to win ALL of our business, there are no free business, there are no free

rides!rides!

• Deliver Great Quality

Code Of PracticeCode Of Practice

10. Effective management systems10. Effective management systems

Ten KeyPrinciples

1. No child labour1. No child labour

2. No forced labour2. No forced labour

3. Freedom of association3. Freedom of association

4. Healthy & safe working conditions4. Healthy & safe working conditions

5. Reasonable wages and benefits5. Reasonable wages and benefits

6. Reasonable working hours6. Reasonable working hours

7. Equal opportunities7. Equal opportunities

8. Employment security8. Employment security

9. Respectful treatment of employees9. Respectful treatment of employees

How will our business grow?

• Great product offer • Quick lead time

• Good working partnerships

• Know strength & weakness

• Be customer focused

• Evaluate our competition

• Be prepared to improve

Biggest Single Challenge Today

Price!Price!(Not Sales)(Not Sales)

Give us the right price and we’ll get you the sale!Give us the right price and we’ll get you the sale!

UK Warehouse Inspections

All Next Suppliers are Categorised. The Category is based on Quality of deliveries

The Categories are AA , BB or DDAA = < less than 0.5% STS fail.BB = < less than 1.0% STS fail.DD = > more than 1.0% fail.

All NS SUPPLIERS should be AA Grade

UK Warehouse Inspections

NEXT WAREHOUSE VIDEO

04/09/23 NSL Quality Management 19

•POOR QUALITY RETURNS•LATE DELIVERIES •AIR FREIGHT CHARGES,•CRUSHED CARTONS, •STS CLAIMS (REWORKS/REJECTS)

COST OF FAILURE USD 1,943,500

2020

All Depts. - Close Internal Relationship

MerchandiseDept.

HR &Admin

IT

• Provide system support (NPS, NSS, ILS etc)

• Maintain computer system performance

Accounts

Shipping

• Arrange product delivery in a smooth operation

• Maintain proper sample handling

• Control Quality to meet standard

• Provide Technical Advice and support

• Provide fabric test service

(Base Test, Bulk Fabric Test, Garment Test)

Technical

• Provide in fabric sourcing, evaluation of fabric mills & fabric technology

Code of Practice

• Code of Practice compliance

Product Dev. & Design

VM Centre in Fuyong

Virtual manufacturing Centre in Shenzhen

Supports the Product Development need of HK and shanghai

Manages and controls bulk garment production

Look at new fabric possibilities and new fashion trends

Black SealBlack SealGrade Sample Grade Sample

Black SealBlack SealGrade Sample Grade Sample

HandoverHandoverHandoverHandover

Development SampleDevelopment SampleBuying SampleBuying Sample

Development SampleDevelopment SampleBuying SampleBuying Sample

Design PackDesign PackDesign PackDesign Pack

Garment PP Garment PP Garment PP Garment PP PP-SamplePP-Sample

  (Production)(Production) PP-SamplePP-Sample

  (Production)(Production)

Store AuditsStore Audits Store AuditsStore Audits

White SealWhite SealFit Sample Fit Sample White SealWhite SealFit Sample Fit Sample

In-line/In-line/End-of-lineEnd-of-lineInspectionInspection

In-line/In-line/End-of-lineEnd-of-lineInspectionInspection

Gold Seal Gold Seal Gold Seal Gold Seal FinalFinalInspectionInspection

FinalFinalInspectionInspection WarehouseWarehouse WarehouseWarehouse

Fabric PP Fabric PP Fabric PP Fabric PP

REWORKREWORK REWORKREWORK

REJECTSREJECTS REJECTSREJECTS

MFRN’sMFRN’s MFRN’sMFRN’s

Product Cycle - Design Pack to Consumer

PREVENTATIVE PROACTIVE

QUALITY ASSURANCE

TEAMWORK AND GOOD COMMUNICATION

TOGETHER WE CAN ACHIEVE ANYTHING

Fabric/Trims

Sewing

Cutting /Fusing /Bundling

Additional Processes

Finishing/ Pressing /Packing

Metal Detection Quality

Planning /

Pre Production

Simply-Walk the Process

IMPROVING IMPROVING PRODUCTIVITYPRODUCTIVITY

04/09/23 NSL Quality Management 26

The objective of this meeting is to provide simplified guidelines to

all QA and Factory Staff to ensure a systematic and clear

path is followed from the introduction of a new style

through to the final shipment.

The objective of this meeting is to provide simplified guidelines to all QA and Factory

Staff to ensure a systematic and clear path is followed from the introduction of a new style

through to the final shipment.

Next RAG Guidelines/Best Practices

Reduce Defects & Unnecessary WastageExcess use of Raw material inputsPreventable defectsCosts related to re processing defective piecesUnnecessary product characteristics NOT required by customer

Reduce “Time”Reduce “Manufacturing Lead Time”“Manufacturing Lead Time”Reduce “Production Cycle Time”“Production Cycle Time”By Reducing “Waiting Time”“Waiting Time” between processing stagesAs well as “Process preparation Time”“Process preparation Time” & “Product conversion “Product conversion Time”(Time”(VAS etc)

Inventory LevelsMinimize Inventory Levels at ALL stages of productionEsp. WIP between production stagesControlled inventoriesControlled inventories mean controlled Costs /capitalcontrolled Costs /capital

Improving Productivity

Efficient Utilization of Equipment & SpaceBy Eliminating “Bottle necks”“Bottle necks”Maximizing Rate of ProductionRate of Production using existing machineryMinimize “Machine Down time”Machine Down time” (Repair/Maintenance etc)

FlexibilityProduce a more Flexible Range of productsFlexible Range of products with :

Minimum Change-over CostsMinimum Change-over Costs

Minimum Changeover TimeMinimum Changeover Time

Labour ProductivityReduce Idle time of workersWorkers execute maximum & effective effort

NOT doing unnecessary TasksTasksNOT doing unnecessary MotionsMotions

Improving Productivity

Increased OutputWith Reduced Lead TimesIncreased Labour ProductivityElimination of “Bottlenecks”Minimal “Machine Downtime”

LEAN LEAN STAGE 1STAGE 1

LEAN LEAN STAGE 3STAGE 3

LEAN LEAN STAGE 3STAGE 3

LEAN LEAN STAGE 4STAGE 4

LEAN LEAN STAGE 2STAGE 2

TARGETTARGET

Improving Productivity

SHORTER LEAD TIME

LOWER RISK

LESS COST

MORE PROFIT

Benefits

Who Uses..?

How can we How can we get there get there

too…?too…?

90 % of Teachings are the same90 % of Teachings are the same

A motivating influence; stimulus;encouragementAn additional “reward” made to employees as a means of increasing production and maintain standardsTime Frame set in which target is to be completed

Can be used in CuttingSewing ReworkIroningPacking Safety Audits / MD

Bonus IncentivesBonus Incentives

All Improvement Systems emphasize “Ways of Thinking”- Not just New Practices

Every Employee is Hired to Use their “MIND” – and not just their Body

The Biggest Change of AllThe Biggest Change of All

Ultimate Objective of Continuous Improvement is Human Development

The real power is when everyone is applying “Lean Thinking” to their work everyday

And when everyone is Thinking of New Ideas everyday

The Biggest Change of AllThe Biggest Change of All

NO BACK STABBING NO SHOUTING NO HIDING

NO ARGUEMENTS BE APPROACHABLE TEAMTEAM WORK WORK

The 2The 2ndnd Biggest Change Biggest Change “Management Style” “Management Style”

WE CAN TEACH EACH OTHERWE CAN TEACH EACH OTHER WE CAN GUIDE AS LEADERSWE CAN GUIDE AS LEADERS

The Difference we Can MakeThe Difference we Can Make

TAKES TIMETAKES TIME

COSTS MONEYCOSTS MONEY

EVERYTHINGEVERYTHING

Costs to borrow MoneyCosts to borrow Money

InsuranceInsurance

SpaceSpace

Loss due to damaged Loss due to damaged goods and defectsgoods and defects

Cost to Cost to ““Count”Count” inventoryinventory

(OVER AND OVER)(OVER AND OVER)

• Cost to Cost to ““Move”Move” inventoryinventory– (OVER AND OVER)(OVER AND OVER)

Cost of InventoryCost of Inventory

Inventory is Inventory is NOT NOT an ASSETan ASSET

Inventory is a Inventory is a ““LIABILITY”LIABILITY”

GOAL = Minimize GOAL = Minimize InventoryInventory

EXCESSIVE:EXCESSIVE:

RAW MATERIALSRAW MATERIALS SEMI MADE GOODSSEMI MADE GOODS DEFECTS DEFECTS STAFFSTAFF OVERPRODUCTIONOVERPRODUCTION TOO MANY MACHINESTOO MANY MACHINES

The Accountants have it WrongThe Accountants have it Wrong

Value Added (VA)Value Added (VA)Transforms material or Information to meet the Transforms material or Information to meet the

true desires and requirements of customertrue desires and requirements of customer

• Non Value Added (NVA)Non Value Added (NVA)– CControl ontrol (Poor)(Poor)

– IInformation nformation (Lack or incorrect)(Lack or incorrect)

– AAdministration dministration (Poor or disorganized)(Poor or disorganized)

– OOther ther (Poor execution,listening,argue etc)(Poor execution,listening,argue etc)

CIAOCIAO = GOOD BYE = REMOVE= GOOD BYE = REMOVE

All Work is either…All Work is either…

Looking for PartsLooking for Parts

Sewing ProductsSewing Products

Searching for InfoSearching for Info

CommunicationCommunication

Delayed responseDelayed response

ReworkRework

ShoutingShouting

Passing partial infoPassing partial info

Incomplete Blue Incomplete Blue FileFile

TestingTesting

TransparencyTransparency

Quick ResponseQuick Response

Visual StandardsVisual Standards

Working Working individuallyindividually

Finger pointingFinger pointing

Entering DataEntering Data

TrainingTraining

ListeningListening

Which of these Activities Add value..?Which of these Activities Add value..?

During 1During 1stst steps of steps of ALL Improvement ALL Improvement efforts:efforts:

• By reducing 5% of By reducing 5% of Value AddedValue Added activities.?activities.?

OROR

• By reducing 95% of By reducing 95% of Non Value AddedNon Value Added activities.?activities.?

Where are the Biggest benefits..?Where are the Biggest benefits..?

Anything that Anything that does “does “NOT ADD NOT ADD VALUE”VALUE” is is WASTE ……..!!!WASTE ……..!!!

……and must be and must be REDUCEDREDUCED or or ELIMINATEDELIMINATED

The No. 1 Fundamental Principle of The No. 1 Fundamental Principle of ImprovementImprovement

OverproductionOverproduction

DefectsDefects

InventoryInventory

TransportationTransportation

WaitingWaiting

MotionMotion

Non Value Added ProcessesNon Value Added Processes

7 main “Wastes”

Lack of “Tools” Lack of “Tools”

Mis-informationMis-information

Underutilized PeopleUnderutilized People

Over processingOver processing

CorrectionsCorrections

STS/Reworks/Rejects/Returns/STS/Reworks/Rejects/Returns/CFSCFS

More “Wastes”More “Wastes”

Zero G/SealZero G/SealZero Insp. FailZero Insp. FailZero Waste Zero Waste Zero DefectsZero DefectsZero ScrapZero ScrapZero ReworkZero ReworkZero DowntimeZero Downtime

Zero InventoryZero InventoryZero handlingZero handlingZero mistakesZero mistakesZero AbsenceZero AbsenceZero DishonestyZero Dishonesty

GOAL= Get even closer to ZeroGOAL= Get even closer to Zero

Set upsSet ups

Sales quotesSales quotes

Response (QRS)Response (QRS)

Delivery Date Delivery Date promisingpromising

Production Production Process TimeProcess Time

P/O Lead TimesP/O Lead Times

OutsourcingOutsourcing

Engineering Engineering ChangesChanges

Time to MarketTime to Market

ReturnsReturns

RepairsRepairs

Data CollectionData Collection

Data analysisData analysis

Period End closePeriod End close

GOAL= Get even closer to Zero GOAL= Get even closer to Zero Process TimesProcess Times

Vastly improved Process efficiencyVastly improved Process efficiency

20-40% increase in 20-40% increase in ProductivityProductivity

70-90% improvement in 70-90% improvement in Lead TimeLead Time

40-60% reduction in 40-60% reduction in Floor SpaceFloor Space

50-70% reduction of 50-70% reduction of WIPWIP

40-70% improvement in 40-70% improvement in QualityQuality

Benefits of “Flow”Benefits of “Flow”

Process of KaizenProcess of Kaizen

One way flow

In-l

ine

QC

In

In

OutIn In

VS

QC QCIn

In

Out

InIn

Streamlining Process Flow

Line 1 Product Type 1 Product Type 2

No. Worker’sName

ProcessA

ProcessB

ProcessC

ProcessD

ProcessE

ProcessF

General

1 Ho 2 Chan 3 Cheung 4 Li 5 Au 6 Hui 7 Lam

3 2 3 2 3 2 7

Workers Skill Matrix

Style No.: ABC 01

Starting Date: 5/8/04 Completion Date: 10/8/04

Total Qty: 3000 pcs

Accumulating Finished Qty: 300 pcs

Date: 6/8/04

Target for every 2 hrs: 135 pcs

Major Process

No. of Workers

8:00 – 10:00

10:00 – 12:00

13:00 – 15:00

15:00 – 17:00

OT hrs Total Qty

Remarks

1 3 138

2 5 110

3 4 140

4 7 100

Efficiency Charts

HELPS TO DISPLAY INTERNAL EFFICIENCY BETWEEN WORKERS IN DIFFERENT

SEWING LINES

Efficiency Charts

SOME FACTORIES HAVE “LIVE”/ ”REAL TIME” PROGRESS USING

TECHNOLOGY

Efficiency Charts

PRESSING STANDARD ON DISPLAY FOR

WORKERS AT PRESSING AREA

PRESSING/VISUAL STANDARD ON DISPLAY

FOR WORKERS AT INSPECTION AREA

Visual Standards and WIP

GARMENTS ARE STACKED & MESSY BEFORE PRESSING

GARMENTS NEATLY STACKED BEFORE

PRESSING

LESS COST….LESS TIME…AS PER VISUAL STANDARD

Visual Standards and WIP

After Pressing WIPAfter Pressing WIP

FABRIC IS STACKED UP TOO HIGH FOR RELAXING BEFORE

CUTTING…MANY ROLLS

FABRIC IS STORED ON RACKS FOR RELAXING BEFORE CUTTING…

ONE ROLL PER SHELF

GOOD/CONSISTENT MEASUREMENTS…AS PER SIZE SPEC

Fabric Relaxation (Jersey / Knit / Stretch Denim)

Fabric Relaxation (Jersey / Knit / Stretch Denim)

FABRIC IS STORED ON RACKS FOR RELAXING BEFORE CUTTING…

ONE ROLL PER SHELF

GOOD/CONSISTENT MEASUREMENTS…AS PER SIZE SPEC

Fabric Relaxation (Jersey / Knit / Stretch Denim)

BIG PIECE WASTAGE SMALL WASTAGE

POOR LAYING CHECK BULK MARKER AGAIN

Cutting Room Wastages

CUT PANELS ARE STACKED UP TOO HIGH AFTER RELAXING….!!!!

CUT BUNDLES STACKED UP TOO HIGH AND MIXED UP BEFORE

SEWING AFTER RELAXING….!!!!

BAD MEASUREMENTS…SHADING/DAMAGE/REWORK/SHORTSHIPMENT

After Cutting WIP

TOO MANY DEFECTED CUT

PANELS

LESS GARMENTS REPLENISH FABRIC MORE TIME ORDER DELAY LESS PROFIT

NEED TO HAVE BETTER /MORE % FABRIC INSPECTION BEFORE CUTTING

After Cutting Panel Inspection

WIP STACKED UP TOO HIGH

WORKER NEEDS SUPPORT..? WORKER TOO SLOW..?

WIP STACKED UP TOO HIGH

SUPERVISOR NOT LOOKING AT WIP TOO BUSY “LOOKING GOOD” INCORRECT ATTITUDE

LOW MORAL / NO ENERGY……….DELAY SHIPMENTS/LOSS OF PROFIT

After Cutting Panel Inspection

Highlight “Bottlenecks”(WIP TOO HIGH)

WIP STACKED UP TOO HIGH

WORKER NEEDS SUPPORT..? WORKER TOO SLOW..?

WIP STACKED UP TOO HIGH

WORKER NEEDS SUPPORT WORKER TIRED..? WORKER UNHAPPY..?

LOW MORAL / NO ENERGY……….DELAY SHIPMENTS/LOSS OF PROFIT

Highlight “Bottlenecks”(WIP TOO HIGH)

A GOOD METHOD TO KEEP MACHINES FROM COLLECTING

RESIDUE FROM THREADS

Keeping Machines Clean

DOUBLE CHECK MACHINE CHECKLIST

Keeping Machines Clean

GUIDE IS INCORRECT TO SPEC

FACTORY QC PASSED..!!!

Accurate Inspections

1

3

2

4

6

5

8

7

9

CHECK ALL AROUND GARMENTS

FRONT BACK INSIDE

360 Degree Quality Review

MAJOR DEFECT POINTS CLEARLY HIGHLIGHTED FOR WORKERS AT

INSPECTION TABLES

HOW TO MEASURE GUIDELINES HIGHLIGHTED FOR WORKERS AT

INSPECTION TABLES

Guides at Inspection Tables

Dept Current Measurement

Appraisal Measurements

Difference%

Timescale

Overproduction

Defects

Inventory

Non Value Added Non Value Added ProcessesProcesses

Transportation

Underutilized Underutilized PeoplePeople

Waiting Time

Internal Internal CorrectionsCorrections

Appraisal and Monitoring

How can NS support more..?

NSL QC/ SENIOR HK STAFF DEMONSTRATING FINAL INSPECTION

TO FACTORY QA/QC

SENIOR HK STAFF EXPLAINING NEXT & QCC PROCEDURES TO

FACTORY QC / LOGISTICS WORKERS IN FACTORY

NS training the Factory

SENIOR HK STAFF CONDUCTING TRAINING SEMINAR TO FACTORY

STAFF

NS training the Factory

TO BE THE BEST GARMENT

MANUFACTURER IN THE WORLD

FACTORY’S GOAL

04/09/23 NSL Quality Management 78

Customer Mission StatementCustomer Mission Statement

To Deliver Beautifully Designed, Excellent Quality Clothing and

Home ware quickly, reliably and at Market Leading Prices.

Q & A