Production Systems

What is a production system

 Integration of
a) Materials handling
b) Production processes
c) Personnel
d) Equipment
That directs workflow and generates finished products.

Workflow is the movement of materials and garment processes

through the conversion process.
Can be impacted by
a) Part of a production process
b) Constraints
 MANUFACTURING – commonly
used terms
 Lead time - time between placement of an
order and delivery
 Throughput time-amount of time taken by a
single unit of style to go through the
production process from cutting to finishing.
 Work- in - process -the no. of garments that
are under production at any given time.
Some important terms
 Balancing - the process of planning a smooth
work flow with a steady supply of work for
each operation.involves planning and
scheduling input based on the demand for
finished parts and products.
 Work Flow - movement of the materials and
garment parts through the conversion
process.
 Buffer - is planned backlog of work that is
available for processing for each operation
 Some important terms

 Throughput volume - is the volume of work that can

be completed in a given amount of time.

 Bottleneck - any area or operation that tends to

slow down the entire systemic flow of the work and
causes delays in completing the work at the
expected rate.
Types of Production systems
 Progressive bundle system( PBS)
 Unit production system( UPS)
 Modular production

Designing a Production System Needs

a) Appropriate management philosophy
b) Materials handling method
c) Plant layout
d) Training
PBS
 Traditional production system
 Units of Production are “ Bundles”
 Bundles : Garment parts needed to complete a specific garment
operation or component. Ex : Fly attachment would need
bundles of front parts + zipper
 Assembled as part of the cutting room procedure
 Cut parts matched with corresponding parts and are ticketed
 TICKET : Style number, size, shade number, list of operations,
routing, piece rate
PBS
 Transported to sewing room
 Distributed to operators scheduled to complete the operation
 One operator picks a certain bundle
 Performs the same operation on all pieces in the bundle
 Reties the bundle
 Keeps in buffer to move to the next operation
 Shirt front

Cutting room Bundles for

Pocket Pocket
Ticketing
attachment

Pocket flap

Sewing Room

Operator Operator
1 2
On all pcs in the
bundle Pocket to shirt front Reties bundle Flap to Pocket
 Shirt front
+ pocket

10 bundles

Operator 1
Line 1

Open bundle 1
Attach Pocket to Front
Retie bundle 1

Open bundle 2
Attach Pocket to Front
Retie bundle 2

Handover to work store

Shirt with
Pkt+ Flap

Operator 2
Line 1
PBS
 REQUIREMENTS
a) High work volume
b) Continuous workflow
c) Routing : Basic operations, sequence , work centers where
these operations are performed
Advantages
 Cost efficiency for Individual operations
 Better speed and operator productivity
 Better use of specialized machinery
 Work stores/ Buffers absorbs variation in stock within a section
 Simplified line balancing and changeover of styles
 Stable on output
 Cost of labor is reduced: Max use of skilled, unskilled and
semiskilled labor
 Better control on quality
 Lot/Shade/Size variations minimize
 Increased Productivity due to rhythm of operation
 Easy tracking of errors
Disadvantages
 Operator flexibility is reduced
 Extra handling
 Difficulty in controlling inventory
 Longer throughput time since large quantities are involved
 Improper planning can cause bottlenecks, low quality
 Inventory cost increases due to Increased levels of WIP
 Higher product width cannot be accommodated
 Quality flaws can be hidden in the bundles
UPS
 Uses overhead transporter system to move garments from
workstation to workstation
 ALL parts of the garment are advanced together
 Unit of production is a garment
 Overhead rail system : Main conveyor+ accumulating rails for
each workstation
 Cut parts of one unit of a single style are grouped and loaded
directly from the staging area to a hanging carrier in the
manner and sequence in which they are to be sewn
 Usually monitored by an integrated computer system
Requirements
 Infrastructure investment : Overhead rails and monitoring
systems
 Multiskilled operator
 Upto 40 styles can be worked with one system
Advantages
 Bundle tickets/ operator coupons for work tracking is eliminated
because of use of an integrated computer monitoring system
 Flexibility in managing WIP and change in operations
 Reduced bottlenecks, Reduced throughput time
 Provides scope for operator data collection
 Quality can be improved due to better visibility
 Reduced space utilization
 Minimum handling
Disadvantages
 High cost of investment with long payback time
 Specialized training
 Needs a carefully planned system
 Modular Production system
 Production is done in modules( manageable work units , self-
contained work team with related equipments)
 Module is a smaller version of the unit
 Also called cellular manufacturing
 Each module has team members varying from 4- 15 depending of no.
of operations
 Work can be done as all operations or as certain portions
 Compensations / Incentives are team based
 Authority/ Responsibility is transferred from the management to the
production team
 Each module can be divided into work zones( A group of sequential
operations)
 Marked by employee empowerment , interdependency and team
work.management sets goals for production quantity and quality.
Advantages
 High flexibility
 Higher throughput time
 Low WIP
 Reduced absenteeism
 Reduced repetitive motions
 Employee ownership
 Improved quality
 Cross trained operators
Disadvantages
 High capital investment
 High investment in training
 Cost of continued training
 Needs rethinking on organizational principles
PROBLEMS IN VARIOUS PS
Production Systems
 Conventional system : PUSH THROUGH PRODUCTION : High
efficiency, large volumes through production based on
anticipated demand
 High volume, Long runs, minimal variations in products
 Efficiencies based on maximum output for each unit of input
 Efficiency is taken as the measure of performance

 Current systems : Based on changing customer demands

PULL THROUGH PRODUCTION : Products /parts produced as
needed but not in anticipation of future use.
Every operation becomes an internal customer
Material Handling
 Efficient movement of goods throughout the conversion
process.
 Does not add value to the product BUT affects workflow and
productivity
 Eliminating handling costs
a) Handling as much as possible in one lot
b) Reducing the distance of movement

Aspects of material handling

a) Incoming goods
b) Movement at WIP
c) Distribution of finished product
DEVELOPMENTS IN PS
Lean manufacturing- Lean Practices are methods of
doing business that facilitate cost reductions, timing efficiencies and
reduce inventory

JIT
 Inventory strategy implemented to improve the ROI of a
business by reducing in-process inventory and its associated
carrying costs
 Quick communication of the consumption of old stock which
triggers new stock to be ordered is key to JIT and inventory
reduction
 The philosophy of JIT - inventory is defined to be waste
 Encouraged to eliminate inventory that does not compensate
for manufacturing process issues, and then to constantly
improve those processes so that less inventory can be kept.
 In short, the just-in-time inventory system is all about having
“the right material, at the right time, at the right place, and in
the exact amount”, without the safety net of inventory
7 forms of wastage according to JIT are

a) inventory
b) overproduction,
c) waiting time,
d) transportation,
e) processing,
f) motion and
g) product defect
Elements of JIT Manufacturing
Achieved by
a) Inventory reduction - exposes problems
b) Small lots & quick setups
c) Uniform plant loading
d) Flexible resources
e) Efficient facility layouts

31
JIT in Apparel Industry
 In JIT fabric systems, the fabric shipped is ready for the
cutting table.
 Fab. Is inspected at the mill and shipped with flaws
marked, colors shaded and variations in fab. widths
identified.
 The fab. Is assorted and loaded on trucks in appropriate
qty.s & colors ready for the cutting table.
 As the fabrics are unloaded they directly go for spreading.
Adv
 Hours of inspection, handling, and sorting of fabrics are
eliminated
Quick Response in Apparel Industry
 It is a customer-driven market system which aims at
shortening the cycle time of the entire production and
distribution chain i.e. from fibre to the retail point of sale.
 Comprises of three main areas:
 Production
 Distribution
 Customer Interface (Point Of Sale/Service)
 The goal is to have-
 better production efficiency,
 less labor intensity
 greater quality and consistency
 more timely delivery
 Coined in 1980’s

 Helps refine CPFR procedures

 Main objective - to increase speed &

accuracy of retailers’ orders & manufacturers’
shipments

 Cycle time of weeks takes days on use of QR

Advantages :-
[from a retailer’s point of view]
 Reduce reorder cycle time of the retail sales floor
 Improves response time to consumer demands
 Make production close to sales
 Increases turnover
 Reduced investment in inventory for both manufacturer & retailer
 Retail dollars are thus freed for grtr investment in the best-selling
merchandise
 Helps to improve competitive position in the market
 Improves sale @ first price and fewer markdowns
 Effective for procurement and sale fashion goods
 Customer satisfaction
 Provides high customer service standards
Advantages :-
[from a manufacturer’s point of view]
 Condenses the merchandising calendar by
shortening the lead time of production.
 Adoption of new-technologies like CAD, automatic
spreaders, JIT fabrics.
Requirements for QR
 Better and timely flow of information from the retailer to the
manufacturer
 For e.g. synthetic fiber mills send small qty. of fibers more
frequently to better meet the needs of yarn and fabric mills
inorder conform the mills about their consistence in quality.
Thus this eliminates the need to test the fiber when a buyer
places an order and reduces the mill’s investment in QC.
 The Supply Chain

Information

Suppliers Producers Distributors Customers

Materials, Finished Package Total

parts, sub- goods, end and satisfaction
Products Products Products
assemblies, and products and delivery and with
and
Services
and services Services Services quality,
services price,
delivery,
Inventory Inventory and service
Inventory

Cash
Global Apparel Value Chain
Tracing back the dress you are wearing
QR incorporates……..
 Internet / intranet systems
 ERP (Enterprise resource planning) e.g. Lotus software
 EDI(Electronic data interchange) – interfaces the
manufacturer directly with the retail sales for seamless
working.
 RFID Technology (Radio Frequency Identification Tags)
 CPRF (Collaborative Planning, Forecasting &
Replenishment)
 JIT (Just-in-time)
 TQM (Total Quality Management)
 ERP- It’s a system which maintains in a single database the
data needed for a variety of business functions such as
Manufacturing, SCM, Finance, HRM, CRM, DW etc . It plans
how the business resources (materials, customers, employees)
are acquired and moved. It vertically integrates the various dept.
or branches of the same company.
 EDI- Billing, shipping orders and re-orders are all done
without exchange of paper. In this system the retailers provides
the manufacturer access to retail inventory and POS data for
manufacturer’s specific product line
CPFR
 CPFR (Collaborative Planning, Forecasting &
Replenishment) powered by IT is an Internet-enabled
SCM system

 It is backbone of customer-centric distribution

practices / processes

 An initiative to develop distribution efficiencies

throughout the supply chain
 Retailers & vendors share information in order to
provide more effective decision making & better
service to customers
 Just-in-Time (JIT) - Efficient logistical
systems that allow for reduced inventory levels
and timely distribution resulting in cost savings

 Total Quality Management (TQM) – Mgt.

systems that encourage team work and
ownership of the production, distribution or
retailing process.

 Inventory control systems depend on two

technologies – UPC & EDI
 Universal Product Codes (UPC) – Product
identification information electronically encoded
in a series of printed stripes found on most
products

 Barcoding – capturing information at POS by

scanning the UPC with electronic device.

 Advance Shipping Notices – Electronically

generated document that alert receivers to
impending shipment of goods.
These Information Systems help retailers
to..
 Use electronic purchase orders

 Print sales tickets

 Hold purchase orders for invoice matches

 Facilitate physical distribution of merchandise Poll POS systems

 Highlight slow selling merchandise & initiate markdowns

 Highlight transfers, re-orders, fast sellers & age of stock

 Compile SKU, classification & dept. reports

 Integrate financial data

 Create online linkages with suppliers

 Internet based Technologies
 Microsoft developed Value Chain Initiative to
bring together s/w, h/w & logistics companies

 EDI’s more advanced XML (Extensible Markup

language) that integrated h/w & s/w, allows data
sharing by many users

 Upgrades retail POS systems(Point of sale or point of

service (POS or PoS) can mean a retail shop, a
checkout counter in a shop, or the location where a
transaction occurs.)
 RFID Technology
 Radio Frequency Identification Tags

 Increases speed and efficiency of supply chain

 Used in tracking products as they enter distribution centers
and are shipped to individual stores
 Contains a data chip which transmits information to a
computerized scanner by means of an antenna
 40-50x faster than standard barcode system!
Case Study: WALMART
 Because of the implementation of RFID,
employees were no longer required to
physically scan the bar codes of goods
entering the stores and distribution centers,
saving labor cost and time.

 Wal-Mart expected that RFID would reduce

the instances of stock-outs at the stores.
The Wal-Mart Supply Chain
 Information Transfer
 Consolidation of purchasing from all
suppliers
 Intercompany and intra company
information access
 Data interchange
 Data acquisition at the point of origin
and point of sale
 Instantaneous updating of inventory
levels
Supply Chain Processes
 Synchronization of activities
required to achieve maximum
competitive benefits
 Coordination, cooperation, and
communication
 Rapid flow of information
 Vertical integration
 Benefit to Wal-Mart

“It’s really all about service to our customers. Our investment in this
technology helps our supplier partners
and Wal-Mart buyers provide customers with what they
want: the right product in the right store at the right price.”
---- Tom Coughlin, President and CEO of the Wal-Mart