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Textile Industry case study

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Some organizations in Indian textile and garments manufacturing sector have resolved the chronic operational conflicts and created a harmonious supply chain where plants are able to not only cut down lead time but also improve utilizations and on-time performance.

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Textile Industry case study

  1. 1. Textile Industry Unresolved Conflicts
  2. 2. Copyright © 2015 Vector Consulting Group. All rights reserved. A typical company in the Indian textiles and garment industry deals with following chronic conflicts
  3. 3. and pays significant late penalty charges, despite having excess plant capacity Suffers from poor on-time delivery performance (less than 70%) despite having tried many scheduling systems to solve the problem Dispatch predictability is very low Copyright © 2015 Vector Consulting Group. All rights reserved. while others are grossly delayed Some orders (or part of an order) gets completed much ahead of actual requirement
  4. 4. Copyright © 2015 Vector Consulting Group. All rights reserved. Rework is a perennial problem despite having quality systems in place. There is continual pressure to add workers even though the plant overall has more than required.
  5. 5. Copyright © 2015 Vector Consulting Group. All rights reserved. Some organizations in Indian textile and garments manufacturing sector have resolved the chronic operational conflicts and created a harmonious supply chain where plants are able to not only cut down lead time but also improve utilizations and on-time performance.
  6. 6. Case Studies 1. Pratibha Syntex Ltd. 2. Raymond Zambaiti
  7. 7. Copyright © 2015 Vector Consulting Group. All rights reserved. Pratibha Syntex Ltd. Largest vertically integrated textile manufacturers in India with its value chain spanning from fiber to fabric to garments. The business networks with around 30,000 farmers, 10,000 employees and renowned global apparel brands in more than 20 countries. Three major business units: Spinning (240crores), Fabric (25 crores) and Garmenting (425 crores). The products include T-shirts, undergarments, high fashion garments and recycled textile products.
  8. 8. Results in last 7 months Pratibha Syntex Ltd. 27% The Average Lead-time from Fabric Knitting to Packing of a Sales order has reduced by On time in full delivery (OTIF) to Customer has improved by 80% and Order to ship has increased from 97% to more than 100%. The Total inventory of garmenting unit is reduced by 18%. The Inventory of Finished Garments has reduced by 26%. The Garment EBIDTA has increased by 55% through Increased Sales.
  9. 9. Copyright © 2015 Vector Consulting Group. All rights reserved. Raymond Zambaiti Ltd. Produces Exclusive cotton shirting & bottom weight fabrics. Supplies its creations to leading shirt brands world over. Manufacturing facility based in Kolhapur has an installed capacity of 21.6 million meters annually.
  10. 10. Results Raymond Zambaiti Ltd. 50% reduction (15 days to 7 days) in assortment waiting time at company warehouse has been achieved because of improved synchronization and flow. This reduction also results to improved cash to cash cycle. On time delivery performance (at SO level) has been improved to 95%. Production lead-time is reduced by 25% (from 45/50 days to 33 days) at SO level.

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