Study on ERP in Garments of Textile Industry


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Study on ERP in Garments of Textile Industry

  1. 1. 1 | P a g e Study on ERP in Garments of Textile Industry What is ERP? ERP (Enterprise resource planning) can be defined as a software solution that addresses the enterprise needs taking the process view of the organization, to meet the organizational goals tightly integrating all functions of an enterprise It is an industry term for the broad set of activities supported by multi-module application software that help a manufacturer or other business manage the all the parts of its business. ERP facilitates integration of company-wide information systems with the potential to go across companies. Enterprise Resource Planning is the latest high-end solution information technology has lent to business application. The ERP solutions seek to streamline and integrate operation processes and information flows in the company to synergies the resources of an organization namely men, material, money and machine through information. Initially implementation of an ERP package was possible only for very large Multi-National Companies and Infrastructure Companies due to high cost involved. Figure: Components of ERP ERP for Apparel Industry: Technology is a necessity in today's business, and the apparel industry is no exception. ERP is used in Apparel Industry with specific capabilities for apparel design, production, and supply chain management. The result is a view into all of a business process that delivers functionality, visibility, and cost-and time-efficiencies along every step of operations from concept to consumer. So, nowadays ERP solutions are largely used for effective monitoring and control,
  2. 2. 2 | P a g e accurate planning and scheduling of orders, better data predictions, quick response to query and on-line detailed information of orders. Uses of ERP in Apparel Industry: 1. Production Planning & Control 2. Manufacturing Resource Planning (MRP II) 3. Material Requirement Planning(MRP) 4. Master Production Schedule 5. Customer Relationship Management (CRM) 6. Bill of Material (BOM) 7. Warehouse Management 8. Inventory Management 9. Purchasing Management 10. Shop Floor Control (SFC) 11. Capacity Requirements Planning (CRP) 12. Cost Reporting/Management 13. Lot Traceability 14. Engineering Change Control 15. Repetitive Manufacturing 16. HR Management 17. Plant Maintenance 18. Service Management 19. Finance Management 20. Purchase Order Management 21. Quote Management 22. Quality Management
  3. 3. 3 | P a g e Quality Management by ERP in Apparel Industry: Quality Management in resources ERP is 100% configurable module. This module allows a wide variety of characteristics and parameters to be specified in the stand inspection operation and maintain an extensive history to improve product quality and identify recurring problems. ERP Quality Management allows the quality department to define its own quality test cases required at different juncture of production, beginning from quality check required during the inward of raw materials. Further Quality Characteristics, parameters and expected results, under each quality process check can be configured without any programming assistance. The material inspection sub system offers a wide range of capabilities for process supervision and control. These capabilities are fully integrated with the other modules such as purchasing, inventory management and shop floor control function to ensure that the right quality control procedures are followed. Capabilities include on-line maintenance of product specifications by production method and customer, event driven sample requests, sample log-in, test results entry; quality performance analysis and equipment calibration support is available in ERP.
  4. 4. 4 | P a g e Product Data Management (PDM): Different departments of a textile or an apparel industry have responsibility to perform various types of tasks. PDM defines responsibility of the persons designated to complete their task in a regular manner and their data could be used by others when needed. PDM helps to create, store and re-use product information in efficient way. Every product information are input in the system and its links with different department such as CAD design, measurement, sketch, components on prototype, product specifications, production manager, designer, planning manager. The authorized persons can access the system and work with the latest data. Figure: PDM Product Life Cycle Management (PLM): Now all CAD companies include PLM in their software system because PLM system allows to go back to design library at any time to reprocess and reuse the data. Designer can change the design in different ways as they wish. Design can be converted easily into specification sheet and these designs are stored in organized way in a central server where authorized persons can use the data whenever needed rather than using individual memory. PLM gives the best collaboration facility within internal and external global supply chain partners. Every task is determined by collaborating with different departments through time and action calendars and workflow can co- ordinate with all parties' activity to launch the product within a shorter time-to-market. Operational, planning, and business management report of PLM helps people to manage and work more efficiently.
  5. 5. 5 | P a g e Production Planning and Control ERP Production-Planning-Control Module provides capabilities for planning, execution, and quality and plant maintenance. Production Plan in ERP is determined based on Resource Planning, Sales and Operation Planning and Demand of the Product. Having determined the information, ERP generates Master Production Schedule. Following are few screenshots from ERP, which helps identify the resources for MPS. Brief flow chart of ERP, Production Planning and Control algorithm is also given below for your ready reference. Inventory Management and Orders: Efficient inventory management should be able to rapidly respond to customer requirements; at the same time should be flexible enough to undertake any corrections when required, and do the so without adversely affecting operational efficiencies. The ERP Inventory Management module offers effective features to minimize warehousing costs and to optimize storage needs in line with the requirements at hand. Inventory management within the ERP system provides a high degree of flexibility for handling complex storage needs, and assures continuous update of warehouse inventory through multiple inventory methods and different types of auditing. All materials input and output transactions are fully automated due to the seamless integration with other associated modules within the system. This also enables efficient, prompt and trouble-free inventory transactions within enterprises.
  6. 6. 6 | P a g e Materials: Production Planning Software - Materials is a comprehensive and user-friendly system covering all areas related to Materials management. The Materials system of the following modules Inventory Control: » Enter all stores transaction on-line » Track all material by Batch No./Lot No. » Generate stock ledgers instantly » Value inventory based on several methods » Create various analysis reports (ABC, XYZ, FSN, and VED) Quality Control : » Define comprehensive Quality Control specification for each item » Access GRNs awaiting Q.C. on-line » Access Test Intimations from Production » Generate Q.C. register for items/batches to be analyzed and print Sampling Slips » Update test results on-line and match with standards to approve or reject material » Print Test Certificates Engineering: » Define Units and Conversion Rules » Define items and their detailed properties » Define Bill of material for each product Finished Goods Inventory : » Enter all stores transactions on-line » Track stocks Batch wise with manufacturing and expiry date details » Print Stock Statements and Stock Ledgers instantly with ultra-fast processing engine » Print Excise Bond Stock Statement Material Requirement Planning : » Define Production Plan » Carry out BOM explosion for the plan and generate Materials requirements » Generate MRP on any interval and create Purchase requisitions based on MRP Plan » Purchase » Define Payment Terms and Standard Purchase Terms » Define Sales Tax Rules, Customs & Excise Rules for each item (as applicable) » Create Vendor-Item Catalog » Send Request for Quotation to vendors » Enter quotation received and perform comparative analysis » Approve quotation for purchases » Create P.O. on-line based requisitions Distribution Planning : » Define each Product and its complete details such as Pack Size, Weight etc. » Group products by Product Groups for planning , reporting and analysis » Group marketing areas by Zone, Regions and Territories » Define Depot wise Sales Forecast » Create Depot Distribution Plans based on Sales Forecast and Inventories held » Create Depot Dispatch Schedules from Distribution Plan and Production Plan Sales: » Maintain finished products price lists » Comprehensive Pricing Model provides you » Define state wise Sales Tax , Trade Discounts, Retailer’s Margins » Automatically calculate Net Trade Prices and Assessable Rates (for Excise) Depot Inventory : » Record F.G. receipt by Depots » Record Depot Sales » Record Inter-Depot Transfers » Generate Depot wise Stock Statement and various other reports including Depot wise Sales, Product wise Sales, Region wise
  7. 7. 7 | P a g e » Define Free Quantities under Schemes » Create state wise price lists for various states for items with uniform M.R.P » Maintain extensive Customer’s information » Process Request for Quotations » Process Sales Orders » Create Dispatch Orders from Sales Orders » Create Dispatch Order from Depot Dispatch Schedule » Sales » Print Sales Register » Print Daily Stock & Sales Statement » Print various other reports » Fully integrated with A/c Receivables Benefits of ERP in Apparel industry: Supplier benefit Management benefit Employee benefit Customer benefit Information in time about material to be provided. Cost savings, Improvement in savings. Good customer relationships Satisfaction working and achieving goals with good team work. Good services. Good quality at cheaper price. Reduction in cycle time: As of now, allocation of material to specific customer order is not possible with the current system. Such allocations are useful for making deliveries as planned, as there is no possibility of the material, which is required by one order, getting consumed for different order. In such cases earlier order would get delayed if material were not available in the stock while production time is spent on other order, which could have waited without causing any problem. Cost savings: Company losses 2% of its sales value in discounts, which are the result of surplus production, implementing quality management system can help to bring down excess production, as management will be assured of the quality right from the raw material itself. Supplier developer module would be useful in proper selection of suppliers, which can focus on quality, cost and delivery aspects of supplier. Reduction in machinery downtime: 5 % machinery downtime is attributed to non-availability of raw material in the stores. This is due to absence of proper planning system and due to communication delays at every place because of information recompiling. Prompt communication coupled with effective supplier selection module and planning system would be useful in bringing down the machinery downtime.
  8. 8. 8 | P a g e Improvement in sales: 75 % customers place repeat orders. Three factors-price, order and delivery affect orders. Integrated system will definitely be useful on this account. Price is one of the causes of losing customers; there is ample scope for cost reduction and therefore company can offer lower prices and incentives to attract customers through integrated information management solution. Customer satisfaction: Current system is ineffective in tracking problems related to customers. The response regarding effectiveness falls in unsatisfactory category. Capacity planning for received order also falls in average category. Efficient capacity management system can bring down the delivery time for execution of the order and improve customer satisfaction. This management scheme can be very useful in maintaining better customer relations with prompt response and by knowing their past history. Well formulated procedures for customer dialog will be useful in having better customer relations. It takes approximately 3 days to answer any of customer’s queries. This period can be brought down to a day, which will have very good impact on customer’s perception of the organization. Conclusion: Thus, due to the globalization information Technology has become a very important asset to the textile industry. With the development of the data management system for production and on- line data monitoring systems on the latest machines, the textile industry will flourish with all the glory to it.  References: 1) 2) 3) Etc.