Luen Thai’s Process FlowsLuen Thai’s Process Flows

__________________________________________________15 January 200415 January 2004

AS400 System Overview• Pre-production

• Sample fabric purchasing

• Material requisition

• Order Processing

• Sales confirmation

• IO heading

• IORS

• Bill of Material

• Fabric purchasing

• Trims/accessories purchasing

• EDI systems

AS400 System Overview• Material logistics

• Material receiving/sending

• Production

• Production monitoring

• Garment logistics

• Invoicing

GENERAL PROCESS FLOWGENERAL PROCESS FLOWTOP

MANAGEMENTVENDOR

MANAGEMENT MERCHANDISING

RESEARCH &DEVELOPMENT

MATERIALPROCUREMENT

LTTC

ReviewSales

Forecast

Businessdevelopment

Productdesign &

development

Source materials

Follow upwith

customer

Review andconfirmorders

Makesamples

Sourceaccessories

Evaluatevendors (FAB

& ACC)

Order Information (AS400 System)

Purchasefabrics

Preparepattern and

samples

Purchaseaccessories

Monitor deliveryof fabrics toproduction

plant

Reviewvendor

performance

Performance Record (AS400 System)

Approve

Create Accvendormaster

MAT PLANNING &CONTROL

Monitor deliveryof accessoriesto production

plant

ProductDevelopment

Create itemcode

Create Fabvendormaster

Create fabriccategories

GENERAL PROCESS FLOWGENERAL PROCESS FLOW

ATL LOGISTICS SHIPPING FCTY LOGISTICSPRODUCTION

PLANNINGBULK

PRODUCTIONPRODUCTION

COORDIANTION

Order & Purchase Information (AS400 System)

Financial Information (SAP)

PRE-PRODUCTION

Receivematerials

Checkmaterial

completeness

Requestmaterials

Issuematerial to

bulk

Scheduleproduction

Receivematerials

Sendmaterials

Documentshipments

Packgarment

Cut/sew/finish

Pre-production

sample

Production Information (AS400)

Issue testfabric rolls

Check IOdetail

completeness

MERCHANDISING PROCESS FLOWMERCHANDISING PROCESS FLOWPrepare annual sales forecast

MER-SM

Issue SPO to Sample ShopMER-MO/MER-MDSR

Submit sample to buyer forreview

MER-M

Sample required?No

Yes

Liaise with buyers, obtainprospective orders

MER-M

New fabricsourcing required?

Prepare Costing Sheet andsend quotation to buyer

MER-M

Changes to order?

Obtain buyer orderconfirmation

MER-M

Assign I/O number for each order

MER-M/ MER-MO

Amend order statusMER-MO/MER-MSDR

Yes

No

Yes

Carry out fabric sourcingMER-M

Buyer changeorder

information

SalesConfirmation

System

MERCHANDISING PROCESS FLOWMERCHANDISING PROCESS FLOWBuyer

Specifications

Review and validate orderspecificationsMER-MO

Transmit I/O file to factory MER-MDSR

Issue SPOMER-MO/ MER-MDSR

Prepare BOMMER-MO/ MER-MDSR

Source and approve fabricMER-M

Prepare and approve samplesSample Shop

Purchase fabricMER-M

Arrange approved samples tofactory

MER-MO/ MER-MDSR

Purchase accessories aPUR staff

Sourcing of fabric required

Update IORSMER-MO

Prepare I/O fileMER-MDSR

Any changes to the order?Review and inform the concerned

partiesMER-M

Monitor factory productionschedule and status

MER-MO/ MER-MDSR

Yes

No

No

Yes

Purchasing Process Flow

1) Fabric

2) Accessories

PURCHASING PROCESS FLOW - PURCHASING PROCESS FLOW - FabricFabric Request for mini-marker

from LTTCMER-MO/ MER-MDSR

Fabricspecification

Prepare Fabric PCMER-MDSR

Supplier FileMaintenance

Approve FPCAuthorised Staff

Transmit FPC to vendorXoTrack/MDSR

Arrange and carry out siteinspection of fabric

QA

Follow up vendor's in-house labtest report

QA

Fabric QualityInspection

Report

Review and evaluateQA-O

Direct shipmentCo-ordinate with

vendorMER-MDSR

No

Yes

Passed inspection/labtesting

Defectacceptable

Decide correctiveaction QA-OMER-M

No

Issuance of Letter ofGuarantee

QA-OVM-M

Yes

Yes

Vendor submitting in-house labtest report

Yes

No

No

Approve/schedule deliveryMPC

PURCHASING PROCESS FLOW - PURCHASING PROCESS FLOW - AccessoriesAccessories

Elaborate purchaserequirements based on BOM/

line itemsMER-MO

Material ApprovalMemorandum

Source suppliers and requestfor samplePUR Staff

Prepare Material ApprovalMemorandum

PUR Staff

Evaluate sampleMER-MO

Issue PC/POPUR Staff

Approve PC/POPUR-M/ PUR-O

No

Sample approvalrequired?

Follow up on the delivery ofaccessoriesPUR Staff

OutstandingPurchase

Contract (bydelivery date)

Daily ReceivingReport

No

Yes

Bill ofMaterials(BOM)

MRF

New accessories items?

YesApprove new item code

PUR-M

New SampleRequest Form

Transmit PO to vendorXoTrack/PUR

AS400 SYSTEM FLOWAS400 SYSTEM FLOW

Sample Production Order (SPO)

Sample Fabric PC (SFPC)

Material Requisition Form (MRF)

Sample FabricReceiving

Sample Fabric Sending

Fabric consume

Fabric Library System

Purchasing System

Pre-productionPre-production

AS400 SYSTEM FLOWAS400 SYSTEM FLOWOrder ProcessingOrder Processing

Account Payable System (AP)

Sales ConfirmationProduction Scheduling

Fabric Purchase Memo (FPM)

Bill of Material (BOM)

IORS

IO Heading System

Fabric LC SystemFabric Purchase Contract (FPC)

Material Submission (Accessory)

Purchasing SystemMaterial Receiving

Material Sending

Fabric Inspection System

EDI PO SystemProforma Invoice (For POLO only)

Internal Order Record Sheet (IORS)

Garment LC & Open Account System

Material Requisition Form (MRF)

SAP

SAP

Quota Management System

SAP