rationalizing sampling efficiency of an export house ...14.139.111.26/jspui/bitstream/1/646/1/ujjwal...

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KATMANDU APPAREL PRIVATE LIMITED | UJJWAL ANAND, BFT, NIFT

RATIONALIZING SAMPLING EFFICIENCY OF AN EXPORT HOUSE THROUGH EFFECTIVE INVENTORY

MANAGEMENT A CASE STUDY OF KATMANDU APPAREL PRIVATE LIMITED

A dissertation submitted in partial Fulfilment of the requirement for

the award of Degree in

Bachelor of Fashion Technology (Apparel Production)

Submitted By UJJWAL ANAND

Under the guidance of COLLEGE MENTOR: DR. A K KHARE, PROFESSOR

Department of Fashion Technology

National Institute of Fashion Technology, (Mumbai)

May, 2017

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ABSTRACT

Global Apparel Industry has become a consumer-driven industry by developing social communication technologies. Export houses are facing tough competition and challenges due to changing market scenario. Sample development stage is one of the crucial phases of an order processing which consumes a considerable amount of time which adds up with the lead time of the order. To gain sustaining competitive advantage sample development processes have to be quick and efficient. An organized inventory setup and standard operation procedures for sampling can eliminate unnecessary delays, chaos and increase the efficiency of sampling quite significantly. At Katmandu Apparel Pvt. Ltd (KAPL), analysis of causes of delay in sampling highlighted the issue of improper inventory management and lack of SOP’s for inventory transactions. Thus, setting up an organized storage for raw materials and standardizing the transaction processes at KAPL not only reduced a considerable amount of traveling time but also increased the sample processing/month by 24%.

Keywords: Sampling, Inventory planning, Layout design, Store setup, Lean, Standardization

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CERTIFICATE

This is to certify that this Project Report titled “Rationalizing Sampling Efficiency Through

Effective Inventory Management” is based on my original research work, conducted

under the guidance of Dr. A K Khare, Professor towards partial fulfilment of the

requirement for award of the Bachelor’s Degree in Fashion Technology (Apparel

Production) of the National Institute of Fashion Technology, Mumbai.

No part of this work has been copied from any other source. Material, wherever

borrowed has been duly acknowledged.

Signature of Author/Researchers

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ACKNOWLEDGEMENT

I am really grateful to NIFT for providing me with an opportunity to do my Graduation

Project on “Rationalizing Sampling Efficiency Through Effective Inventory Management” at

Katmandu Apparel Pvt. Ltd.”, Mumbai.

I would like to express my deep sense of gratitude and heartfelt thanks to my college

Mentor Dr. A K. Khare, Professor without whom my graduation project would have been a

distant dream. I would also like to acknowledge Mrs. Kavita Pathare, Course Coordinator

and other faculty of Department of Fashion Technology for their guidance and feedback.

I am indebted to Mr. Manish Singh Dhakad, Head of Sampling at Katmandu Apparel Pvt. Ltd.

for letting me to pursue/carry out my graduation project in his esteemed organisation.

Again, I would like to express my sincere gratitude to Mr. Manish Singh Dhakad, for being a

very supportive industry mentor and providing valuable insights of the industry leading to

the successful completion of this project.

Last but not the least; I would like to thank all other employees, staffs and operators of the

organization for their selfless help throughout the project’s tenure.

Ujjwal Anand

B.FTech (Apparel Production)

NIFT Mumbai (2013-2017)

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CONTENT

ABSTRACT ................................................................................................................................................ 2

CERTIFICATE ............................................................................................................................................ 3

ACKNOWLEDGEMENT ............................................................................................................................. 6

1. INTRODUCTION .................................................................................................................................. 9

2. PROBLEM STATEMENT....................................................................................................................... 9

4. REVIEW OF LITERATURE................................................................................................................... 11

5. METHODOLOGY ............................................................................................................................... 13

6. RESULTS ........................................................................................................................................... 13

ANNEXURE I .......................................................................................................................................... 17

THE PROBLEMS AND THE EFFORTS ........................................................................................... 17

1 PREVIOUS STATUS OF THE FABRIC AND TRIM STORE FOR SAMPLING............................................ 18

2 DESIGNING AN ORGANISED STORAGE FOR SAMPLING: .................................................................. 19

2.1 SPACE PLANNING & LAYOUT DESIGN ................................................................................... 19

2.2 Execution of the layout plan ................................................................................................. 21

3 CONSIDERATION OF LEAN CONCEPTS IN STORE DESIGN ................................................................ 23

3.1 AREAS OF WASTE IDENTIFIED IN THE PREVIOUS STORAGE ENVIRONMENT ........................ 23

4 IMPLEMENTATION OF “5S “IN THE STORE ...................................................................................... 24

4.1 SORTING (SEIRI)..................................................................................................................... 25

4.2 SET IN ORDER (SEITON) ......................................................................................................... 27

4.3 SHINE (SEISO) ........................................................................................................................ 29

4.4 STANDARDIZE (SEIKETSU) ..................................................................................................... 30

4.4.1 EARLIER RAW MATERIAL ISSUING PROCESS: ................................................................ 30

4.4.2 New standardized process for raw material issuing: .................................................... 31

4.5 SUSTAIN (SHITSUKE) ............................................................................................................. 32

4.6 A VISUAL WORKPLACE .......................................................................................................... 32

4.7 SAFETY FEATURES OF THE STORE – THE 6TH “S” FACTOR .................................................... 34

5 IMPACT OF STORE SETUP IN TIME SAVING ..................................................................................... 37

5.1 TOP VIEW OF THE LOCATIONS OF VARIOUS DEPARTMENTS ............................................... 37

5.2 MOVEMENTS INVOLVED IN A SAMPLE DEVELOPMENT PROCESS ........................................ 38

5.2.1 BEFORE & AFTER ........................................................................................................... 38

5.3 MATERIAL FLOW CHART ....................................................................................................... 39

5.3.1 PREVIOUS FLOW ........................................................................................................... 39

5.3.2 NEW FLOW .................................................................................................................... 40

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ANNEXURE II ......................................................................................................................................... 41

THE SOP’s .................................................................................................................................. 41

1 SOP’S FOR THE NEW SYSTEM .......................................................................................................... 42

1.1 SOURCING ............................................................................................................................. 42

1.1.1 FORMAT FOR SOURCING .............................................................................................. 43

1.2 STORAGE ............................................................................................................................... 44

1.2.1 FORMAT FOR RECORDING STORAGE ............................................................................ 45

1.3 ISSUING ................................................................................................................................. 46

APPENDIX I ........................................................................................................................................... 49

ABOUT THE COMPANY .............................................................................................................. 49

APPENDIX II .......................................................................................................................................... 51

THE TRANSFORMARTION .......................................................................................................... 51

BIBLIOGRAPHY ...................................................................................................................................... 56

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1. INTRODUCTION

Sampling is a continual process in the clothing industry. It is a representation of the

manufacturer's or exporter's potential to deliver desired outputs based on the details and

information specified by the buyer. Sampling is one of the key elements of the pre-

production processes in a garment industry. Before a manufacturer produces bulk orders, a

prior sampling of styles is done to get approvals and jumpstart the fabrication of garments.

A sampling includes details like a product/style code or a reference number, color

specifications, kind of fabric, composition, description, quantity, and details of embroidery,

buttons, zippers, or any other sort of accessories used. Hence it can be said that samples of

garments work as a bridge between buyers and the producers. Samples can range from

prototypes, called 'fit samples', to development samples; size set samples, pre-production

samples, shipment samples, and marketing samples etc. The purpose of sample production

is not only to get the bulk order and also it gives some additional benefits to the exporters.

In this era of competition sample production processes have to be quick and effective to

gain a buyer’s confidence and get an edge over other competing export houses. An efficient

sampling department in an export house is essential to reduce pre-production lead times

and increase the production capacity making ways to receive more orders and earn more

money. The storage and handling of raw materials, components and products is an integral

part of most production processes. Done efficiently, it can ensure that work flows smoothly

and helps to avoid delays and bottlenecks. At Katmandu Apparel establishing a one-stop

store for all raw materials not only removed some non-value added activities but will also

save a considerable amount of time involved in a sample development process. Moreover

sorting out of unnecessary fabrics will create a lot of empty rented space, which can be

further utilized in a more efficient way.

2. PROBLEM STATEMENT

Lack of a defined fabric, trim, accessory store at Katmandu Apparel Private Ltd was creating

lots of unnecessary material movements, miscommunication, delays and defects in sample

production.

Multiple ordering of same fabric, fabric loss in the cutting process and lack of fabric at the

time of requirement were few common problems that were identified during the study of

sampling processes followed in the company. An accountable amount of time was wasted in

searching fabrics, causing delays and inefficient utilization of other related departments.

Sample processing was facing hindrance at the fabric issuing stage.

The company had no control on the inventory due to the lack of any standard operation

procedures for fabric transactions.

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These problems called for an urgent necessity of a centralized store for all fabrics trims,

accessories and stationeries required for sampling. That was the 1st structural change that

was required in the company as a systematic approach towards reducing pre-production

lead time and increasing sample processing per day. Without a proper storage facility,

materials get damaged and lose their value, accidents occur and the capital is tied up in

unnecessary stock.

3. OBJECTIVE

The main objective of this project was to “Rationalize the Sampling Efficiency of An Export

House through Effective Inventory Management Techniques”. Analysis of the causes of

delay in sampling processes highlighted the need of establishing a proper inventory

management set up. Inventory for a garment sampling unit is its fabrics and trims.

This project was aimed to attain the following goals:

Primary objective:

Keep a track on the inventory

Better organized inventory management

Reduce raw material issuing time (In-house Time)

Increase Job card processing/day (“Job Card” is a set of papers having details of sample, spec sheets, diagrams, and swatches of fabric and trim)

Standardize SOP for fabric transactions

Fewer, efficient and more systematic transport

Secondary Objective:

Control on the inventory by defining reordering point and

Avoid multiple sourcing of same material

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4. REVIEW OF LITERATURE

“Analyzing sample production processes in the apparel industry and a model proposal “by Abdurrahim YILMAZ, Engin AKÇAGÜN & Vedat DAL

Figure 1: A Typical Order Processing and Execution System for woven apparel industry

This paper analyzes the sample production departments by using the benchmarking technique and develops a new proposal for sample production departments. The study explains the stages of sampling and its significances in mass production. In study analyzes the sample production room of three large-scale apparel production firms by using benchmarking techniques. Few parameters were established to measure and compare the efficiency of a sampling room. It includes organizational structure, process management, planning and control systems, quality control system and spatial properties. These parameters are a critical process that needs improvement in sample production departments. It was concluded that implementation of a model designed with a consideration of above-mentioned parameters has a major impact on production in terms of pieces and lead time.

“Analysis of the factors affecting the lead time for export of readymade apparels from Bangladesh; proposals for strategic reduction of lead time “ By- Shahidul Kader, M.Sc. Maeen Md. Khairul Akter, M.Sc., Lecturer, National Institute of Textile Engineering and Research (NITER)

This literature studies the various factors which affect the lead time of production in an export house. The paper defines lead time and its importance for planning, production, and supply chain in Apparel industry. It is stated that Lead-time typically includes two

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components: Information lead times (the time it takes to process an order) and Order lead times (the time it takes to produce and ship the item). Information lead times can be reduced if, sample development becomes more efficient. The study analyzes the time taken in a typical order processing and execution system in Apparel industry. The author has divided the problematic areas in the readymade apparel industry that affects the lead time in 3 categories.

a) Development stage b) Execution stage c) Other areas It was inferred from the analysis of this study that, development stage takes a considerable part of the total lead time, and there is a scope of controlling and reducing it to a certain level.

“Performance measuring tool-5, Inventory Management by Mausmi Ambastha, Co-founder ThreadSol “

The literature explains the importance of inventory management in a company. An inventory is defined as an asset which is going to be used to produce goods. It justifies the amount of inventory that should be stored in a company. Higher inventory means higher capital blockage and higher space requirement. On the other hand, Lower inventory may lead to the risk of disruption in production. The overseeing and controlling of ordering, storage, usage and disposal of raw material as well as finished goods’ inventory, are the key aspects of inventory management. Operational efficiency of an inventory management is measured by a parameter called “Inventory Turnover”, which represents the number of times an inventory cycles through the warehouse in a year. A common inventory management goal focuses on improving inventory turnover. The article also highlights the issue of obsolete inventory in a warehouse and suggests that it must be liquidated at a reduced price, or sold as scrap as it occupies expensive and potentially productive rented space. The store room should be monitored at regular intervals to identify obsolete inventory and take proactive actions. Regular monitoring may be able to reduce the losses occurring due to obsolescence.

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5. METHODOLOGY After mapping out the working procedures and a serious of discussion with the industry

mentor, following action plan was formulated.

Study and analyze the current sampling procedure – To map the current gaps in the

procedure and identify possible causes of delay.

Planning for execution of solution to fill the gap. – This step would involve finding

possible solutions to the identified problems and planning for implementation of the

same.

Raw material Store Set-up Initiation – Layout planning, fabric sorting and locating.

Restructuring the fabric issuing process – To facilitate smooth flow of fabric with

respect to issuing.

Training of employees to handle ERP and Master Excel Files – Making workers aware

of the cause of transition and benefits of the same along with proper training of the

new process.

Implementation of the new process.

Establishing control on the raw material inventory.

Generation of SOP through the implementation of points mentioned above. Impact analysis – To chart the benefits and limitations of the implementation

6. RESULTS

BEFORE

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As a result of several improvisations in the inventory management system, like setting up a

centralised store, implementing lean tools (5S) and standardizing procedures for fabric

transactions, there was a significant growth in the efficiency of sampling room at Katmandu

Apparel Pvt. Ltd.

Total amount of fabric stored in the store in the time period of Jan’17 to Apr’17 = 20,301.6

meters.

Average cost of a fabric = $2.33/meter

Therefore, inventory value in the store worth is $47,302.72 or 3,074,676.8 INR

Out of total 31,385 meters of fabric previously, 19.77% of obsolete inventory was

removed out during the sorting process, vacating unutilized rented space, which is now

used as CAD department.

More sewing machines and laser cutting machines are going be shifted in the space

vacated after sorting.

Travelling distance has reduced from 105 meters to 29 meters.

AFTER

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Travelling time has reduced from 43.5 minutes to 10.7 minutes saving around 32.7

minutes. (Refer Chart 1 and Chart 2 in Annexure 1, Page 39-40)

As a result of Lean store set up and updating fabric details on ERP & master excel sheet

fabric searching time has reduced from around 15 minutes to <5 minutes. (Refer page

28-29, Annexure I)

The efficiency of sampling room was marked to be increased by 24% in the month of

April 2017.

0

20

40

60

80

100

120

PREVIOUSLY CURRENTLY

TRAVELLING FOR SAMPLE PROCESSING

DISTANCE

TIME

772

764

738

850

500

DEC'17

JAN'17

FEB'17

MAR'17

APR'17 (2 WEEKS)

NUMBER OF PROGRAMS

NUMBER OF PROGRAMS

GRAPH 1: PROGRAMS PROCESSED PER MONTH

GRAPH 4: REDUCTION IN TRAVELLING DISTANCE AND TIME

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MONTH NUMBER OF PROGRAMS DEC’17 772

AVERAGE: 758 JAN’17 764

FEB’17 738

MAR’17 850

APRIL’17 (2 WEEKS) 500

EXPECTED(till April’17 end): 1000 INCREASE : 24.20%

Average number of programs that used to be issued per month earlier = 758 Thus, an expected number of 1000 programs in April ‘17 in comparison to an average 758

programs/month indicate a 24% increase in the sample processing efficiency. (GRAPH 1)

Consequently, inventory turnover also increased by 65% from February to April 2017,

indicating frequent moving of inventory in a month. (GRAPH 3)

FEB'17 MAR'17 APRIL'17

INVENTORYTURNOVER

0.099 0.127447651 0.166509731

0.000

0.050

0.100

0.150

0.200

INV

ENTO

RY

TU

RN

OV

ER

INVENTORY TURNOVER

0.000 0.050 0.100 0.150 0.200

FEB'17

MAR'17

APRIL'17

INVENTORY TURNOVER

INVENTORY TURNOVER

GRAPH 2: EXPECTED INCREASE IN NUMBER OF PROGRAMS IN

APRIL

GRAPH 3: INCREASE IN INVENTORY TURNOVER FROM FEBRUARY TO APRIL

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ANNEXURE I

THE PROBLEMS AND THE EFFORTS

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1 PREVIOUS STATUS OF THE FABRIC AND TRIM STORE FOR

SAMPLING There was no defined space for the storage of fabrics trims accessories and stitched

samples. All the records of fabric which come and issued were recorded manually in a

register. Raw materials were kept in different departments or with merchants’ masters and

designers. Fabrics and trims were not sorted and it always takes time to find out the

required item. Also fabric consumption and wastage was never considered while issuing

fabrics for next processes. One complete bundle of fabric was given to the cutting master,

who used to cut the required fabric as per his understanding and returns the rest. All this

made the sampling process more complicated, caused miscommunications, material loss,

mismanagement and delays in the sample development process.

The company decided to setup a new raw material store in a 1350 sq. Ft. Area, which they

rented recently. It was supposed to store all the stationeries and raw materials required for

sampling. Many layout plans were altered and proposed as per the changes in the plan of

management. Shown below is the initial plan which was made on AutoCAD after discussing

with the concerned authority.

Figure 2: Previous storage of fabrics Figure 1: Previous storage of trims

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2 DESIGNING AN ORGANISED STORAGE FOR SAMPLING:

2.1 SPACE PLANNING & LAYOUT DESIGN

The new store is a 1350 sq. feet space, in which around 470 sq. ft. space has mezzanine

flooring at a height of 7 feet. That space with lesser height is going to be used for trim and

accessory storage in smaller racks. The rest is for storing fabrics in larger racks, almirah,

wooden racks, stools, a chair and a cutting table.

Shown below (figure 3) is the first plan of the fabric store, designed after discussion with the

respective authority. Then after 9 layouts were designed and altered consistently to match

the requirements of the company. Initially it was planned to keep 25 racks only for fabric

storage and the rest space was left for the cutting activity on 4 tables. It was also discussed

that some part of the space with mezzanine floor shall be used to keep few sewing

machines.

After numbers of discussion and meetings, it was finally decided that there are around 40

racks available for fabric storage and all of them shall be kept removing the cutting tables.

Then, the final layout for the storage of fabric was finalized as shown in figure 4.

Figure 3: The 1

st layout plan

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Figure 4: The final layout plan for the fabric storage

(Detailed layout is attached at the end of this document)

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2.2 Execution of the layout plan

An organised storage utilises the available space to the maximum level. Total wall space in a

room can be sometimes as much as the floor space, which can be used for efficient storage.

The wall space had been for trim storage by fitting multilevel wooden racks along the wall.

Figure 5: The new trim storage: Utilization of wall space

Such a wall racks for storage, are low-cost practical solutions for space utilization. Multi-

level racks save space and allow material to be stored in an orderly manner.

While setting up rack storage system, proper utilization of the shelf space should also be

considered. In case of trim storage, they are kept in trays and boxes which also have some

height. Placing one tray over another is not a good solution to use the shelf space properly.

Such trays can be heavy at times, which can cause trouble in picking items from the tray

underneath, which is not in accordance with the rules of workstation ergonomics. So,

Further Partitioning of racks according to the height of trays and boxes can be done to

utilize the shelf space efficiently.

MOST FREQUENTLY ISSUED

FREQUENTLY ISSUED

RARELY ISSUED

SOMETIMES ISSUED

7 FEET

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Figure 6: Partitioning of racks according to the height of trays.

Now, when it came to utilisation of floor space, one problem that aroused was the stability

of racks. This was because there was no support to the racks on the floor, like they had

when attached with the wall. This problem became more crucial for the larger racks having

their height much larger than their depth as it was not sufficient enough to support the load

on the rack. And since the racks were supposed to store heavy bundles of fabric into it,

there was a risk of falling down of racks when loaded, which could be hazardous. So the

racks required some sort of balancing from all the sides to take the load of fabrics easily,

without bending.

For that case, two racks of similar dimensions were joined along with each other, which

added support to both the racks from the base and along its width. So, for the same length

of racks depth of the base was doubled, which provided them enough stability. In that way,

floor space was also utilised to the optimum level and the risk of collapsing of racks was also

removed.

Figure 7: Utilization of floor space Figure 8: Execution of the idea

(Image source: ILO: Improving working conditions and productivity in the garment industry. An action manual)

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Further such arrangement of racks in the available space allowed segregating them in blocks

for fabrics which were going to be stored i.e. Denim and Non Denim.

Figure 9: Blocking of space for different fabrics

3 CONSIDERATION OF LEAN CONCEPTS IN STORE DESIGN

3.1 AREAS OF WASTE IDENTIFIED IN THE PREVIOUS STORAGE

ENVIRONMENT

Transportation / Conveyance: Fabrics and trims were stored in parts in different departments. So, issuing a fabric or trims required unnecessary internal travelling to the departments. Such motions created chaos in the process, caused delay and

thus affected productivity of the company. As also depicted through the motion chart (chart 1 and chart 2), setting up a new store reduced manual distance travelling by 76 meter for each sample development program.

Inventory: Records of fabric sourced and issued to merchants were maintained manually in a register. Material ordering requests were forwarded through mails and not in a particular format. Getting data of all raw materials sourced in one particular season or month was a tedious task. This traditional data recording system had many disadvantages like accessing the details of the required fabrics

N

O

N

D

E

N

I

M

D

E

N

I

M

D

E

N

I

M

NON DENIM

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used to take much time. Also, there was no transparency in the inventory stock and consumption records. Poor visibility or inaccurate information over the

existing inventory in the entry book was observed most of the times. Those had an impact on the processing of sample requests and ultimately result in fabrics being unavailable for cutting, thus increasing the sampling time of the program.

Waiting: The messed up storage in the previous system, was creating processing delays due to wasteful activities like searching, lifting bundles and placing them again. Such waiting for raw material issuing, waiting for getting a ccurate inventory data, delays occurring due to rework/correction of fabrics were the results of poor inventory management.

Over processing: There was no consumption record of the fabric which was issued

for a sample request. One whole bundle of fabric was given to the cutting masters, who cut the fabric as per his understanding and then return it to the store in-charge. In such cases it was observed that, most of the time, there was extra fabric cut for convenience which ultimately ends up as a waste. Al so it was observed that same fabrics were ordered multiple times, due to the lack of proper

track on inventory movements.

Space: There was no defined space for the storage. Racks were not aligned in a sorted and systematic way. Raw materials occupied space in various departments which was creating problems in man and material movements. Height was unutilized due to lack of racks. Space utilization was unplanned and not optimum. Moving out of fabric from such places created enough productive space.

4 IMPLEMENTATION OF “5S “IN THE STORE

Achieving lean storing facility requires a certain mind set. A can-do attitude is the starting

point. If we and our staff don’t believe that “the perfect order” is attainable, normal error

rates will persist. Lean thinking will require a conversion from top-down leadership to

bottom-up initiatives. In this project of store set up, we intended to make every employee

an inspector, and everyone is expected to help the company achieve continuous positive

results out of this effort.

Lean thinking will not occur in a hierarchical environment. Managers must become coaches

rather than tyrants. Employees must be rewarded for being proactive. A perfection mind-set

in the storage room can be developed with active leadership. The leader in lean

warehousing must be a change agent.

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4.1 SORTING (SEIRI)

4.1.1 SEGREGATION OF DENIM FABRICS

The first step 5 S is sorting. In case of sampling, the amount of fabric ordered is not in bulk

quantity. The company stores variety of fabrics in little quantity to offer different samples to

the buyer. So Sorting and allocation of fabrics in a production store and in a sampling store

is different. The process started with separating out all the fabrics which were older than 12

months and which are not in use now. Then sorting of fabrics into Denim and Non denim

was done. Sorting of denim fabrics was done colour wise, weight wise and composition

wise. Blue, Black, Blue-black, and Indigo were the most common colours which are sourced

frequently. There were other colours also, but not in enough quantity to be sorted and

allocated a specific location. Further these colours of fabrics were available in different

weights and compositions. Those fabrics were segregated as light weight denim (<6 ounce),

medium weight (6-12 ounce) and heavy weight fabrics (>12 ounce). Although there was

variety of fabric compositions available, but again one particular quantity was not in bulk.

So, all the fabrics are sorted as 100% cotton and cotton, polyester, spandex blend.

DENIM

BLUE BLACK MISC. INDIGO BLUE-

BLACK

LIGHT WEIGHT MEDIUM WEIGHT HEAVY WEIGHT

100% COTTON BLEND 100% COTTON BLEND 100% COTTON BLEND

Figure 10: Sorting of denim fabrics

Figure 11: Segregation of denim fabrics

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4.1.2 SEGREGATION OF NON- DENIM FABRICS

WOVEN

Then, non-denims were divided as Woven and Knits. Again Woven fabrics were categorised

into solid, Y/d checks and stripes, prints, RFD (Ready for Dying) and miscellaneous. The

Miscellaneous category contained numerous varieties of fabrics available in lesser quantity.

It included some grey fabric, Twill fabric, Brushed fabrics, etc. It was further divided into

light weight, medium weight and heavy weight fabrics. Most of the available fabrics were

plain weave only and majority had composition of either 100% cotton or 100% viscose.

Sorting of woven was done on the basis of composition as 100% cotton, 100 % viscose and

blend of cotton polyester and spandex. Pocketing fabrics were available in 2 compositions

and in only solid colours. So it was simply sorted as 80/20 and 65/35 poly cotton blend. All

the pocketing fabrics were allocated at one place.

LIGHT WEIGHT MEDIUM WEIGHT HEAVY WEIGHT

100% C BLEND

WOVEN

SOLID PRINT MISC

..

RFD

CHECKS/

STRIPES

100%

VISCOSE

100% C BLEND 100%

VISCOSE

100% C BLEND 100%

VISCOSE

POCKE

-TING

80/20 P/C 65/35 P/C

Figure 12: Sorting of woven Non-denim fabrics

Figure 13: Segregation of woven non- denim fabrics

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KNITS

Knitted fabrics occupy the minimum space in our fabric store. Though there were enough

differences in the compositions and quality of available knit fabrics, the quantity was very

low. So, instead of further sorting them quality wise, they were simply sorted by their name

and given a location. For example, all ribs were placed in 30-A rack. Or it can be said that

rack no. 30-A stores all varieties of ribs composition wise or weight wise or colour wise.

4.2 SET IN ORDER (SEITON)

Sorting of fabrics into different categories made it easier to put them in a particular location.

Shifting medium weight blue-black 100% cotton denim fabrics in the denim block was

started. That particular location of the fabric is updated on ERP and the master excel file to

facilitate searching process when required.

Further, location stickers and signboards were fixed properly with the racks in order to

facilitate the visual searching. Direction of the row containing the racks was pasted on the

top of racks, with an objective that all rack numbers can be seen together from the centre of

the store room.

KNITS

FRENCH

TERRY

TOWE

L

TERRY

MISC. RIB SINGLE

JERSEY

Figure 14: Segregation of knit non- denim fabrics

Figure 15: Locating fabrics into particular rack numbers

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After implementation of “Seiton” searching time of fabric has reduced significantly. Earlier if

a merchant used to come for issuing a particular fabric say, “KAG-1091/BLUE BLACK” the

store in-charge had to lift all the other denim fabrics placed over that in order to pick the

required one. And in case he doesn’t remember the fabric, he had to check his register for

the date of arrival of fabric and then search the complete set of fabrics that came on that

date. Setting fabrics category wise in particular locations reduced the maximum searching

time from 15 minutes to no time.

Now, the only time which fabric issuing takes is going and picking the fabric.

Earlier process:

GOING TO STORAGE AREA

SEARCH THE REQ. FABRIC (5-15

MINUTES)

REMOVE ALL THE ABOVE FABRICS

PICK THE REQUIRED FABRIC

LIFT THE COMPLETE BUNDLE TO THE CUTTING TABLE

BRING BACK THE REMAINING FABRIC

PLACE IT BACK

Figure 16: Racks direction boards

Figure 17: Movements required for getting a fabric (Before)

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The new workflow is smoother and easier. It prevents loss of materials, wastage of time and

also improves the system ergonomics, making it more comfortable and efficient.

Current process:

4.3 SHINE (SEISO)

Cleaning became a part of daily inspection in the new store. All the racks, tables and floor

were cleaned on regular basis. Since, dirt on table or racks could deteriorate fabric, it was

made sure that the place is kept clean and dry properly. Hand wash and a dryer were fixed

in a corner, to prevent touching of fabrics from dirty or wet hands. Rack codes are kept dust

free and clean enough to be visible easily. Floors are marked with clear arrows showing exit

directions. The impact of cleanliness can be seen as reduction in fabric rejection due to

spoilage, dirt, Greece and oils. This activity makes the work place safe, efficient and pleasing

to work in.

GOING TO RM STORE

SEARCH FABRIC ON ERP/MASTER EXCEL

FILE (<15 SECS)

GO TO LOCATION PULL THE FABRIC

CUT THE REQUIRED FABRIC

PLACE IT BACK

Figure 19: Cutting Work space before and after

Figure 18: Movements required for getting a fabric (After)

30


4.4 STANDARDIZE (SEIKETSU)

The efforts invested in sorting, allocating and setting up a complete new store required

standardization of methods to be maintained properly. For this, a new process of fabric

issuing has been formatted. A complete SOP is developed and the concerned people like the

fabric team, merchants, designer and store people were educated about the same. The new

system involves computerized inventory management software for efficient control on the

inward and outward fabrics.

4.4.1 EARLIER RAW MATERIAL ISSUING PROCESS:

Fabric reordered on the visual basis, as many times less quantity fabrics like 2 or 3 meters get lost in the stack.

No numeric record of consumed fabric and remaining fabric.

Fabric inward and issued records are maintained in a register.

Few programs get canceled at raw material issuing step.

All programs are forwarded for next process without checking the inventory.

Requirement given by the merchant in the program.

Raw material sourcing request iis given through mail. No record of bought fabric in a specific format.

Figure 20: Regular cleaning of racks

31


4.4.2 New standardized process for raw material issuing:

The implementation of ERP and development of the master excel file of fabric inventory

management helped in attaining standardization in the processes, as the computer doesn’t

even accept the program if the raw material is not available in the store. Also concerned

employees at each stage of the new process were instructed and trained to follow the new

process, and update the process in ERP in real time.

It seemed difficult to implement this process in the initial weeks. Bringing a change in an

organisation faces much resistance from a part of the workforce who fitted themselves

comfortably in the previous system. In this case, many merchants who had, no records of

the fabric which they ordered, were unhappy with the new sorting technique. In the

previous system, all fabrics of one merchant were kept at one place, and taking any fabric in

any amount at any time was very easy for them. Now sorting of fabrics had been done in

categories and no one could take fabrics from the store without a request through ERP.

Getting details of old fabrics troubled them, but that was required for the success of new

system of inventory management. CCTV was also installed in the new store to keep control

on the fabric issuing process.

Gradually most of the people started understanding the benefits of the new system and

success of standardization of fabric issuing process was observed.

Fabric consumption and reordering point is monitored through Master Excel sheet.

Fabric inward and issued quantity data is updated on the Master Excel sheet

Only programs with available raw materials are processed further, rest are hold till the required materials are sourced.

Consumption requirement is given by the merchant.

Raw material sourcing request are processed only if sent in a defined format.

32


4.5 SUSTAIN (SHITSUKE)

Sustaining a new system required a lot of effort in training of employees to follow the SOP,

control on the processes, regular audits and proper maintenance through expert

supervision. It required inculcating the discipline of working, regular inspection and

corrections in the mind-set of employees.

One house keeping staff was employed exclusively for this new store, to clean up twice in a

day. There was no alternate way to process sample requests other than through ERP. So, it

helped in sustaining of the new process from the merchants and designers side. Then, few

weeks were invested in training of store in-charges to shift from their manual record

keeping practise to using ERP for all transactions. The impact of training of employees

reflected as a reduction in loss of fabric after a month. All transactions related to fabric

could be controlled under the new SOP with the help of ERP and the master Excel sheet.

Though this transparency took months to happen, but it shows that we are able to sustain

the change.

4.6 A VISUAL WORKPLACE

The new raw material store was equipped with self-explanatory signs, arrows and posters,

which were easier to be understood by the employees working there. The objective of

pasting such posters was to minimise confusions and mistakes which leads to delay in the

main work. Also it worked as a signal to alert them from any potential hazard ahead. Every

department was labelled with its name fixed on its door. The entrance of cutting room and

the store had the layout plan pasted on its door, which clearly demonstrates the entry and

exit gates, location of tables, racks and computers inside the room. Inside the store, the

floors were clearly marked with safety radium tapes. It allowed the passage path and exit

route visible even in dark. All switches were labelled properly to make functions easier and

comfortable. The rack directions were pasted in such a manner so that all the row directions

can be seen from the centre of the store. Such visual features in the store made the

workplace self-explanatory and chaos free, reducing unnecessary delays.

Figure 21: Employees following the new SOP

33


Figure 22: Visual features of the store

34


4.7 SAFETY FEATURES OF THE STORE – THE 6TH “S” FACTOR

Safety in a workplace is an unavoidable feature which must be considered while setting up a

functional department. “Safety is value-added, and hazards are waste”.

The major potential hazards which were present in the new store were due to the presence

of mezzanine flooring in the half part of the space. So, safety instructions were pasted on

the entrance to avoid any mishap.

Figure 22: Visual features of the store

Figure 23: Mezzanine flooring

Figure 24: Safety instructions

35


Ceilings of this part of space were cushioned to avoid accidents. Also, Caution posters were

pasted on the upper floor of the store, which clearly mentions its load capacity and alert

people in advance to take precautions. A first aid box is situated in the middle of the store

near the trim storage which is easily accessible from all sides of the store room.

Fire safety is one of the most important safety features which must be implemented in a

storage system, especially when the stored materials are fabrics. The store had 2 gates on 2

ends and around 4-5 people working at a time.

Exit boards were marked near the gates showing the direction to leave the room. Fire

extinguishers are fixed near both the gates, which are further marked with red tape, which

Figure 25: Cushioned ceilings and Safety instructions

36


indicates that the particular area must be kept clear all the time. Yellow radium tapes are

pasted on the floor, which shows the passage area and directions even in dark. Red arrows

are marked on the floor which leads to the nearest emergency exit gate from that point.

Figure 26: Fire safety features

37


5 IMPACT OF STORE SETUP IN TIME SAVING

5.1 TOP VIEW OF THE LOCATIONS OF VARIOUS DEPARTMENTS

Ground floor First floor First floor

Merchants

Stitching

Washing

New store

Merchants

CAD & Cutting

Designers

Figure 28: Top view of Location of different departments

Figure 27: Location of different departments

38


5.2 MOVEMENTS INVOLVED IN A SAMPLE DEVELOPMENT PROCESS

5.2.1 BEFORE & AFTER

Once a sampling request program was generated and approved, the merchant used to give

the original sample, tech-pack, spec sheet and all required technical information to the CAD

master to develop pattern for the sample.

CAD team used to make the patterns and send it for manual verification process. Meanwhile

the merchant used to go to issue fabrics and trims from different places. Previously, fabrics

(including pocketing and interlinings) were kept with CAD team, designers, cutting masters

and few merchants. Those were segregated in 2 types - fabric for new development and

fabric for production samples. The fabric issuing process was completely manual, and fabric

consumption was not considered. Average length of fabrics that come for sampling is 10

meters. One complete bundle of fabric was moved to cutting room when required. The

cutting master used to cut the fabric as per his understanding of requirement and keep the

remaining fabric there only, until the in-charge of respective fabric come and shift it back to

its place.

While the pattern was made and checked, the merchant used to collect the raw material

swatches, and request sheet, packs it in a jacket and gets it approved by the sampling head.

Once the materials and pattern get passed through the verification process, the fabric is

moved to cutting.

In the previous system (chart 1), there were a lot of unnecessary motions and travelling

involved due to lack of a raw material store. The new store became a one stop for all kinds

of raw materials and stationeries required in the sampling process. Setting up a new store

not only saved around half an hour every day, but also made fabric issuing process more

smooth, systematic and transparent.

Structural changes were made to collect the entire raw material issuing process at one place. So loss of time, confusion and inefficiency were prevented. The most important objective of the centralization was to eliminate the defects resulting from material and information flow. After the setup of the raw material store, the travelling distance reduced from 105 meters to 29 meters, which saves around 32 minutes of unnecessary movements in one sample development process (Chart 2).

39


5.3 MATERIAL FLOW CHART (AS PER THE FORMAT OF ILO)

5.3.1 PREVIOUS FLOW

FLOW PROCESS CHART MAN & MATERIAL

CHART NO: 01 SHEET NO:01

SUBJECT CHARGED: MOTIONS INVOLVED TILL RAW MATERIAL ISSUING PROCESS

ACTIVITY OLD NEW SAVINGS

OPERATION 5

TRANSPORT 6

METHOD: PRESENT

DELAY 3

INSPECTION 2

STORAGE 2

DISTANCE

LOCATION: TIME:

OPERATIVES: COST: MATERIAL

LABOUR

CHARTERED BY: UJJWAL ANAND

TOTAL:

DESCRIPTION: DIST.(meters) TIME (minutes)

SYMBOL REMARKS

SAMPLE REQUEST GOES TO CAD FOR PM 10 0.25 *

PATTERN IS MADE *

PATTERN CHECKED *

MERCHANT GOES TO ISSUE FABRICS 15 0.375 *

STOREINCHARGE SEARCHES FABRIC 10 *

FABRIC ISSUED AND NOTED *

ISSUED FABRIC IS STORED TEMPORARY *

MERCHANT GOES TO ISSUE TRIMS 35 0.875 *

STOREINCHARGE SEARCHES TRIMS 15 *

TRIMS ISSUED AND NOTED *

THE PROGRAM GOES FOR RAW MATERIALS VERIFICATION

35 0.875 *

RM VERIFIED *

PROGRAM MOVED TO CUTTING *

FABRIC IN BULK IS GIVEN TO CUTTING 5 0.125 *

CUTTING MASTER CUTS THE REQUIRED AMOUNT OF FABRIC

*

REMAINING FABRIC IS KEPT IN CUTTING *

REMAINING FABRIC IS MOVED BACK TO ITS PLACE

5 0.125 *

REMAINING FABRIC IS STORED *

Chart 1: Material flow in existing system

40


5.3.2 NEW FLOW

FLOW PROCESS CHART MAN & MATERIAL

CHART NO: 01 SHEET NO:01

SUBJECT CHARGED: MOTIONS INVOLVED TILL RAW MATERIAL ISSUING PROCESS

ACTIVITY OLD NEW SAVINGS

OPERATION 5 3

TRANSPORT 6 4

METHOD: NEW

DELAY 3 1

INSPECTION 2 2

STORAGE 2 1

DISTANCE (m.) 105 29 76

LOCATION: KAPL TIME (min.) 43.5 10.725 32.775

OPERATIVES: COST: MATERIAL

LABOUR

CHARTERED BY: UJJWAL ANAND

TOTAL:

DESCRIPTION: DIST. (meters) TIME (minutes)

SYMBOL REMARKS

SAMPLE REQUEST GOES TO CAD FOR PM 10 0.25 *

PATTERN IS MADE *

PATTERN CHECKED *

MERCHANT GOES TO ISSUE ALL RAW MATERIALS (RM)

8 0.2 *

REQUIRED RM IS SEARCHED 10 *

REQUIRED RM IS ISSUED AS PER GIVEN CONSUMPTION

*

FABRIC IS KEPT BACK AT ITS LOCATION *

THE PROGRAM GOES FOR RAW MATERIALS (RM) VERIFICATION

8 0.2 *

RM VERIFIED *

PROGRAM MOVED TO CUTTING *

ONLY REQUIRED FABRIC IS SENT FOR CUTTING

3 0.075 *

CUTTING MASTER CUTS THE FABRIC *

Chart 2: Material flow in the new system

41


ANNEXURE II THE SOP’s

42


1 SOP’S FOR THE NEW SYSTEM

The new store setup required standard procedures to be followed for all fabric transactions

in order to have good control on the inventory, and avoid losses. Establishing a discipline in

working methods was essential for sustaining the new system efficiently.

1.1 SOURCING

The first step through which a fabric comes into the company is sourcing. Keeping a track on

the fabric on the buying stage reduced the event of multiple ordering of same fabrics, which

used to happen frequently earlier.

The objective of defining a new methodology is to receive fabrics with full details and a

unique product id and also increase transparency in the fabric sourcing and receiving

procedures.

FABRIC DATA ENTRY OPERATOR FOLLOWS UP THE COMPLETE PROCESS AND KEEPS UPDATING THE MASTER EXCEL SHEET.

MAIL (BY MERCHANT) RECEIVED: ONCE THE FABRIC REACHES THE MERCHANT + DETAILS AND PO NUMBER IS VERIFIED (SUBJECT: #REQUEST ID:RECEIVED)

MAIL (BY SOURCING PERSON): REQUESTED: AFTER RECEIVING APPROVAL (SUBJECT: #REQUEST ID:REQUESTED)

MAIL (BY SOURCING PERSON): ON HOLD MEANS REQUEST FORM APPROVED BY DEPARTMENT HEAD NOT RECEIVED IN PHYSICAL FORM (SUBJECT: #REQUEST ID:ON HOLD)

THE CONCERNED FABRIC PERSON (CATEGORY WISE) RESPONDS ON THE SAME MAIL .

FABRIC DATA ENTRY OPERATOR COPIES THE DETAILS IN MASTER SHEET

MERCHANT ENTER REQUIREMENT IN FORMAT AND SEND MAIL TO FABRIC TEAM (SUBJECT: #REQUEST ID: REQUEST)

43


1.1.1 FORMAT FOR SOURCING

The excel format for sourcing is designed in such a manner such that it contains all the

necessary details required to know the status of a particular type of fabric.

The 1st column contains the Request Id which is automatically generated when a merchant

enters his/her name code and order sequence number which also has to be in the specified

format. The 5th column “Department” has drop down options for men’s wear, women’s

wear and kids wear. The fabric sourcing person is allotted on the basis of selection in

department column. Next few columns contain details on fabric requested. Merchant also

enters the quantity required and mention preferred supplier if any. The merchant sends his

request in his format sheet. The fabric data entry person updates the same in the master

sourcing sheet. This sheet has some more columns in addition to the columns which are

same as what merchants’ sheet has. The fabric data operator enters the name of concerned

sourcing person. He/she also updates the status of fabric which is formulated as drop down

option in the column. The rows of this sheet are formatted to show different colours

depending on the status of the fabric.

ON HOLD: NO COLOUR

REQUESTED: YELLOW

RECEIVED: GREEN

CANCELED: RED

This sheet is password protected and can be edited by only either fabric data operator or

the sourcing head.

Figure 29: Sourcing format

44


1.2 STORAGE Once a fabric bundle is received, the merchant gives the received challan to receiving and

dispatch department and send the fabric for storage. Afterwards the following procedures

were followed.

THE STORE PERSON COMES , PICK AND PLACE THE FABRIC IN ITS LOCATION

RAW MATERIAL MASTER FILLS THE GREEN CARD FOR THAT FABRIC AND TAGS IT WITH THE FABRIC

RAW MATERIAL MASTER UPDATES FABRIC DETAILS AND LOCATION INTO ERP AND MASTER EXCEL SHEET

MEASURED FABRIC BUNDLES ARE GIVEN TO RAW MATERIAL MASTER (ERP) OPERATOR

FABRIC BUNDLES IS MEASURED

FABRIC BUNDLE CHECKED FOR PO NUMBER AND DETAILS (RETURN TO MERCHANT IF DETAILS ARE NOT AVAILABLE)

Figure 30: Process before moving fabric into storage

45


1.2.1 FORMAT FOR RECORDING STORAGE

The excel format for recording storage was designed in order to maintain all details which

might be required while fabric issuing process. All details must match before a fabric is

issued for cutting, thus avoided errors in cutting. 1st column of the sheet was formulated to

show the status of existing fabric. The reorder point was fixed as 3 meters.

Merchants/designers were informed when their fabric quantity hit reorder point. The

merchant/designer used to decide whether to source or discontinue that item, which is

updated in the last column of this master sheet. The sheet is formatted to change row

colours when item is discontinued or when the item is finish. Red row represented that the

fabric was finished. Remaining quantity is formulated to automatically subtract issued

quantity from entered quantity. Whatever location is allotted to the fabric is written on the

green tag, entered in the ERP and updated on this master excel sheet.

Figure 31: Fabric inventory sheet format

46


1.3 ISSUING

Fabric issuing process was entirely changed and systematised in the new system. The new

system worked on the basis of visual signals and pull system such that there was no

unnecessary gathering of fabrics and materials were feed for cutting just when required.

Four cartons were fixed on the floor of cutting in-charge’s room, with stickers named as

“Fabric In-house In”, “Fabric In-house Out”, “Cutting In”, and “Cutting Out”. The boxes are

checked once after every one hour. As a result of this standardization in process, cutting

efficiency increased substantially as there was no lack of work on the cutting table.

ONCE FABRIC IS OUT OF CUTTING, THE CUTTING INCHARGE MOVES THE PROGRAMS INTO "CUTTING OUT BOX" AND INFORM THE MERCHANT

THE CUTTING INCHARGE CHECKS THE "FABRIC IN-HOUSE OUT BOX "EVERY HOUR AND MOVE FABRICS FOR CUTTING AND PUTS PROGRAM IN "CUTTING IN BOX"

FABRIC PERSON KEEPS BACK THE PROGRAMS IN FABRIC IN-HOUSE OUT BOX.

FABRIC PERSON CHECKS THE BOX EVERY HOUR AND KEEPS THE REQUIRED FABRICS ASIDE.

SAMPLE PROGRAMS ARE DROPPED IN FABRIC INHOUSE BOX BY THE MERCHANT

Figure 32: Fabric issuing process

47


Details of fabric issued were recorded in the master excel sheet in a defined format.

ENTERING ISSUE DATES IN THE GIVEN FORMAT

MONTH(D1,D2,D3,…) /MONTH2(D1,D2,D3…)

FOR EXAMPLE:

If same fabric is issued on April 11,April 11, April 13,June 20, June 25.

Then enter issue dates as : Apr(11,11,13)/Jun(20,25)

ENTERING ISSUE QUANITY IN THE GIVEN FORMAT

= QTY.1 + QTY.2 +QTY.3

PRESS ENTER.

FOR EXAMPLE:

If on April 11 and 13 fabrics issued are 3 meters and 5 meters respectively,

Then enter issued quantity as : =3+5

The issued quantity cell is formulated to show an Error if the user tries to enter a

quantity greater than entered quantity.

Figure 33: Ready to cut fabrics

48


The excel sheet automatically adds up all the issued quantity and gives back the Remaining

Quantity. Once the remaining quantity became zero, the excel row automatically turns red,

indicating that the fabric has finished.

The sheet is password protected and the columns are validated and formulated to avoid

data entry errors.

On the back of the green tag, there are columns drawn to fill detaiils regarding issued fabric.

It contains Program request number, date issued quantity and balance quantity.

Figure 34: Entry of issued fabrics

Figure 36: Format for entering consumption

of issued fabric

Figure 35: Validation of cells

49


APPENDIX I

ABOUT THE COMPANY

50


ABOUT THE COMPANY

Katmandu Apparel Private Ltd. is an apparel export house founded by Mr. Kiran Temkar and

Mrs. Manisha Temkar. The head office of this company is located in Prabhadevi Real Estate,

Dadar, Mumbai. Since 1980, Katmandu Apparel Private Ltd. has been a renowned export

house engaged in the production of woven apparel to highly competitive markets in USA

and Europe. It is a conglomerate of 10 production units situated in Bangladesh, China and

Vietnam. In total, it has a production capacity of 5 million garments per month. The

company deals with variety of garment styles of men’s wear, women’s wear and kids wear.

Kid’s wear (60%) occupies major part of their production orders followed by men’s wear

(25%) and women’s wear (15%). The company possess an annual turnover of 150 million.

Entire company is equipped with state of art facility in its departments say, stitching,

washing, embroidery, or cutting.

Their design Head office is situated in Gurgaon, Haryana whereas sampling units are located

in Chembur and Dadar, Maharashtra. At Katmandu Apparel Private Ltd., range of fabrics is

universal in appeal. Katmandu Apparel Private Ltd. aim to inspire a diverse mix of

customers enriching lifestyles globally .They have successfully established themselves as a

one-stop shop for apparel solutions catering to an array of international clients.

Major buyers of Katmandu Apparel Private Ltd. are:

JC Penny People Tree

Dickies Stage

Macy’s Mango

K Mart Max

Inditex H & M

51


APPENDIX II

THE TRANSFORMARTION (IN PICTURES)

52


BEFORE

AFTER

53


BEFORE

AFTER

54


BEFORE

AFTER

55


BEFORE

AFTER

56


BIBLIOGRAPHY

“Analyzing sample production processes in the apparel industry and a model proposal

“by Abdurrahim YILMAZ, Engin AKÇAGÜN & Vedat DAL

“Analysis of the factors affecting the lead time for export of readymade apparels from Bangladesh; proposals for strategic reduction of lead time “ By- Shahidul Kader, M.Sc. Maeen Md. Khairul Akter, M.Sc., Lecturer, National Institute of Textile Engineering and Research (NITER)

“Performance measuring tool-5, Inventory Management by Mausmi Ambastha, Co-

founder ThreadSol “

ILO Handbook for improving working conditions and productivity in the garment industry

THANK YOU

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