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Re-engineering of Merchandising Department

                     A

            Research Proposal

                    For

              Post-Graduation

                     At




                Submitted By

             Miss. Khushboo

     Master of Fashion Technology, Semester 3

    National Institute of Fashion Technology

      NIFT Campus, GH-0 Extension Road

            Gandhinagar-382 007

                   Gujarat




                     1
Introduction-

The global competition, intense work pressure for faster and better delivery,
optimization of profits-sales, downtime analysis of productions process and human
error, reduction in time-to-market, design driven market with quickly changing trends,
customer demands for greater design variety and frequent design creation with specific
changes, information access in the production process, transactions and most
importantly, need of the mass, are some of the challenges being faced by the Fashion
and Apparel industry.Re-engineering is “Fundamental rethinking and radical redesign of
business         process    to     achieve dramatic improvements in          critical measures of
performance such as cost, service, and speed in order to make them more effective,
efficient,                                   and                                     responsive.”
             In Garment Industry pre-production process networks are not standardized.
They are unique for every single enterprise, every single buyer, and sometimes for
every single order. While the traditional "time-action-plan" concept in pre-production
activities tries to control delays, it still gives rise to "me-first" mentalities. Pre – Production
delays are the extension of the days beyond standard and planned schedule for the activities
starting from order enquiry to all approvals required for bulk production. These delays
increases the lead-time even more than the standard one and hence to survive in the global
competitiveness is much more difficult for the manufacturers. By various studies and
research in garment organization, it has been found that the % contribution of Pre-
production delays accounts more than 50% of total delay of any order. This project work
has been design to; re-engineer the merchandising department. This will include
rethinking and radical re-designing of all activities. The Project work would be targeting
on minimizing the expansion of lead time in Pre-production.




                                                2
Literature review:

24 orders problem of delay in pre production was found and on further detailed analysis
of the lead time and time spent in pre-production of these 24 order was studied it was
found 65.5% of time was involved in the p pre-production of these 24 orders. 1

Time consumed in product development is the biggest issue. Approvals and bulk fabric
in house consumes approx 75% of the total pre production activity time and as far the
most time consuming task. About 60% of the delays are at Pre production stage and
remaining at the production stage and reduction of such time can help the company in
meeting the delivery dates on time. Controlling the delay would enable the company to
reduce the deviation from the schedules lead time and honor the delivery date. 2

Garment pre production activity, time loss in getting approvals and logistics related
issues contribute to more than 80% of delays. The garment pre production activity is
significantly inefficient, any saving in time and manpower at this stage can help in
improving overall supply chain efficiency. Strengthening the pre production activity can
significantly help in reducing the lead time. 3




Objective:

       To analyze the extent of delays in executing the orders.

       To determine the extent of pre-production delays in overall delays.

       To determine the potential areas causing frequent delays

       To determine factors those can be controllable, to avoid delays




                                                  3
Methodology:

First of all the pre-production activities will be study thoroughly and data would be
collected. Further these are the concepts can be implemented to achieving the objective
of research project:

       Elimination (remove a process)
       Compression (remove time within a process)
       Integration (re-engineering interfaces between successive processes)
       Concurrence (operate processes in parallel)
       Order management (Perfect Order is one that is on-time, complete, accurate,
       and in perfect condition.)
       Aggregating and prioritizing orders (This include selection of the orders and
       planned execution of the orders based on the importance and priority)
       Managing exceptions and substitutions (Inventory shortages, potential customer
       service issues and delivery problems should be monitored, so that the time and
       information necessary to place new orders, reroute, substitute and communicate
       with customers.
       Reporting (Capture key performance metrics and establish benchmarks for on-
       time deliveries, cash-to-cash cycle time, inventory turns and forecasting
       accuracy. Get the information needed to continuously improve fulfillment
       process)
       Sourcing (Optimize procurement across an extensive supply network, including
       stores, distribution centers and suppliers, to meet current demand. Proactive
       generation of purchase orders for additional supplies when needed. Plan for the
       future with Demand Forecasting so that right product at right time is ensured.
       Close eye on the events that may delay order delivery based upon past records)
       Critical Chain Approach (Like project management, pre-production activities in
       garment manufacture are driven by human parameters. Furthermore, some of
       the critical chain characteristics have a lot in common with garment pre-




                                             4
production activities, all of which are addressed specifically and decisively in the
      critical chain approach. These include:
          -   Reverse scheduling
          -   Multi tasking
          -   Task estimation
          -   Parkinson's Law
          -   No early finishes
          -   Relay race approach
          -   Follow-up mode:


Possible deliverables:

The possible deliverables research will be as bellow:

   1. The study will help the organization to reduce the delay in
   2. Identification and rectification of the causes of delay.
   3. The research will be able to suggest the changes/modification need to be done
      for avoid unnecessary delay.
   4. By implementing this concept the delay can be avoided.




                                             5
End Note:

   1. Pre-production delay in Garment .By: thegodkannan ,scribd.com

   2. Posted by Anubhav Yadav, http://knowledgeandfashion.blogspot.com
   3. The long and short of garmenting lead-time, By : C. K. Karekatti

            http://www.fibre2fashion.com

Bibliography

Books:

Jermy A. Rosenau, Devid A. Wilson, “Apparel Merchandising: The line starts
here”,Fairchild, 2001.

Grace I. Kuntz, “Merchandising: Theory, principle & practices” , Fairchild, 2000

Articles:

Stitch world, 2010,

Apparel online, 2010

Websites:

www.tukatech.com

scribd.com

http://knowledgeandfashion.blogspot.com

www.fibre2fashion.com




                                            6

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Khush.docx

  • 1. Re-engineering of Merchandising Department A Research Proposal For Post-Graduation At Submitted By Miss. Khushboo Master of Fashion Technology, Semester 3 National Institute of Fashion Technology NIFT Campus, GH-0 Extension Road Gandhinagar-382 007 Gujarat 1
  • 2. Introduction- The global competition, intense work pressure for faster and better delivery, optimization of profits-sales, downtime analysis of productions process and human error, reduction in time-to-market, design driven market with quickly changing trends, customer demands for greater design variety and frequent design creation with specific changes, information access in the production process, transactions and most importantly, need of the mass, are some of the challenges being faced by the Fashion and Apparel industry.Re-engineering is “Fundamental rethinking and radical redesign of business process to achieve dramatic improvements in critical measures of performance such as cost, service, and speed in order to make them more effective, efficient, and responsive.” In Garment Industry pre-production process networks are not standardized. They are unique for every single enterprise, every single buyer, and sometimes for every single order. While the traditional "time-action-plan" concept in pre-production activities tries to control delays, it still gives rise to "me-first" mentalities. Pre – Production delays are the extension of the days beyond standard and planned schedule for the activities starting from order enquiry to all approvals required for bulk production. These delays increases the lead-time even more than the standard one and hence to survive in the global competitiveness is much more difficult for the manufacturers. By various studies and research in garment organization, it has been found that the % contribution of Pre- production delays accounts more than 50% of total delay of any order. This project work has been design to; re-engineer the merchandising department. This will include rethinking and radical re-designing of all activities. The Project work would be targeting on minimizing the expansion of lead time in Pre-production. 2
  • 3. Literature review: 24 orders problem of delay in pre production was found and on further detailed analysis of the lead time and time spent in pre-production of these 24 order was studied it was found 65.5% of time was involved in the p pre-production of these 24 orders. 1 Time consumed in product development is the biggest issue. Approvals and bulk fabric in house consumes approx 75% of the total pre production activity time and as far the most time consuming task. About 60% of the delays are at Pre production stage and remaining at the production stage and reduction of such time can help the company in meeting the delivery dates on time. Controlling the delay would enable the company to reduce the deviation from the schedules lead time and honor the delivery date. 2 Garment pre production activity, time loss in getting approvals and logistics related issues contribute to more than 80% of delays. The garment pre production activity is significantly inefficient, any saving in time and manpower at this stage can help in improving overall supply chain efficiency. Strengthening the pre production activity can significantly help in reducing the lead time. 3 Objective: To analyze the extent of delays in executing the orders. To determine the extent of pre-production delays in overall delays. To determine the potential areas causing frequent delays To determine factors those can be controllable, to avoid delays 3
  • 4. Methodology: First of all the pre-production activities will be study thoroughly and data would be collected. Further these are the concepts can be implemented to achieving the objective of research project: Elimination (remove a process) Compression (remove time within a process) Integration (re-engineering interfaces between successive processes) Concurrence (operate processes in parallel) Order management (Perfect Order is one that is on-time, complete, accurate, and in perfect condition.) Aggregating and prioritizing orders (This include selection of the orders and planned execution of the orders based on the importance and priority) Managing exceptions and substitutions (Inventory shortages, potential customer service issues and delivery problems should be monitored, so that the time and information necessary to place new orders, reroute, substitute and communicate with customers. Reporting (Capture key performance metrics and establish benchmarks for on- time deliveries, cash-to-cash cycle time, inventory turns and forecasting accuracy. Get the information needed to continuously improve fulfillment process) Sourcing (Optimize procurement across an extensive supply network, including stores, distribution centers and suppliers, to meet current demand. Proactive generation of purchase orders for additional supplies when needed. Plan for the future with Demand Forecasting so that right product at right time is ensured. Close eye on the events that may delay order delivery based upon past records) Critical Chain Approach (Like project management, pre-production activities in garment manufacture are driven by human parameters. Furthermore, some of the critical chain characteristics have a lot in common with garment pre- 4
  • 5. production activities, all of which are addressed specifically and decisively in the critical chain approach. These include: - Reverse scheduling - Multi tasking - Task estimation - Parkinson's Law - No early finishes - Relay race approach - Follow-up mode: Possible deliverables: The possible deliverables research will be as bellow: 1. The study will help the organization to reduce the delay in 2. Identification and rectification of the causes of delay. 3. The research will be able to suggest the changes/modification need to be done for avoid unnecessary delay. 4. By implementing this concept the delay can be avoided. 5
  • 6. End Note: 1. Pre-production delay in Garment .By: thegodkannan ,scribd.com 2. Posted by Anubhav Yadav, http://knowledgeandfashion.blogspot.com 3. The long and short of garmenting lead-time, By : C. K. Karekatti http://www.fibre2fashion.com Bibliography Books: Jermy A. Rosenau, Devid A. Wilson, “Apparel Merchandising: The line starts here”,Fairchild, 2001. Grace I. Kuntz, “Merchandising: Theory, principle & practices” , Fairchild, 2000 Articles: Stitch world, 2010, Apparel online, 2010 Websites: www.tukatech.com scribd.com http://knowledgeandfashion.blogspot.com www.fibre2fashion.com 6