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CHAPTER I
INTRODUCTION
Surya Nepal Private Limited (SNPL) is an Indo-Nepal-UK joint venture, which started
operations in Nepal in 1986. Surya Nepal is now the largest private sector enterprise in Nepal
and a subsidiary of ITC Limited, India, the balance shares are held by 20 Nepalese individual &
corporate shareholders and British American Tobacco (Investment) Limited, UK.
The company was awarded the prestigious FNCCI National Excellence Award during 2007 for
being the best-managed corporation in Nepal. The company is also the recipient of various
national safety and environmental awards and with our constant focus on systemic work
processes, both our cigarette and garment factories are ISO-9001: 2000 certified.
John Players is the garment initiative of Surya Nepal Ltd. of Nepal. The company commenced
manufacture of garments with leased capacities under the prestigious John Players label, for ITC
Limited, India, in January 2004 with a strategy to quickly overcome the learning curve, build
sustainable competitive advantage and become a significant player globally.
In the quest to achieve the above, Surya Nepal had to invest substantial sums of money in
upgrading infrastructure including plant and machinery. Considerable time and effort was also
spent in the training of manpower, introducing work processes, work aids, and quality systems to
enable production of international quality garments. Appropriate systems in the area of quality,
logistics and finance had to be introduced to enable efficient monitoring and quick decision-
making. Considerable effort was also undertaken in recruitment training and development of
personnel into a well-knit team, which blended with the value culture and ethos of the company.
The vision is clear – “To make the world wear our quality apparel”. The
company’s mission is focused on “creating competitive advantage for its buyers by providing a
superior sourcing solution”. Nepal, being a LDC, enjoys preferential access to numerous markets
including duty-free access to the European Union & Canada.
2
Within the first year of commencing operations, our Garments Division has exported more than
one million popular segment “John Players” branded formal shirts and semi-formal trousers to
ITC Limited for sale in India. The garments have been ranked first in the Product Quality Rating
System (ITC’s internal quality evaluation methodology) as against high-end shirts and
competitive products from Bangladesh and India.
John Players - Nepal Market
Surya Nepal launched the fashionable and youthful men's apparel brand, John Players, in
October 2004. John Player is designed keeping in mind the fashion preference of today's youth
and the most contemporary trends. The brand is currently available in over 70 multi-brand
outlets across the country. John Players now enjoys high recognition from both consumers and in
the fashion industry. The brand won the coveted 'Rising Star Brand of the year' award at the 5th
Annual Images Fashion Awards 2005 in India.
John Players provides a complete wardrobe solution for the fashion and quality conscious male
in Nepal. The range includes formal, casual and party wear shirts, formal and casual trousers,
chinos, corduroy jackets and trousers, sweat shirts, trendy tees, jackets, 100% pure merino wool
sweaters, blazers and suit’s. Also available are trendy denims reminiscent of the 70s rock fusion
era.
John Players is a brand that is looked after and monitored by ITC India. It must adhere to the
standards prescribed by ITC regarding its clothing.
The head office of John Players in Nepal is situated in Kantipath, Kathmandu.
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CHAPTER II
OPERATIONS MANAGEMENT FRAMEWORK OF JOHN PLAYERS
Fig 1: Operations Management Framework of John Players
2.1 Operations Management Framework Of John Players
2.1.1 Planning Phase:
The planning phase is the most important phase in the entire operations management
process. The planning phase consists of two parts:
Sales: The sales plan refers to the final plan of sales. It needs to be planed about
how the sales is to be commenced.
Procurement: The sales plan is the basis for the procurement plan. The major plan
of how much quantity required is done in the sales plan and then the plan is given to
the procuring department that deals with the acquirement of that planned quantity.
2.1.2 Procurement:
The sales department gives a certain required goal as to how much needs to be produced.
The required goods are then acquired either by importing or by locally manufacturing.
Import: Importing is done whether for finished products or for raw materials. The
cost is compared as to which one would be costlier or cheaper.
Locally manufactured: Locally manufacturing refers to the conversion of raw
materials of finished goods. The convertors are nominated by close analysis and
selection to meet the required quality standards.
SalesMerchandise
PlanningImport (FG)Locally Manuacture
ProcurementFabricRM
Warehousing
4
2.1.3 Warehousing:
The goods are stored in two warehouses, namely: fabric and raw materials. The
company is now planning to combine the two warehouses.
2.1.4 Dispatch:
The goods are then dispatched to the wholesalers who then supply it to the outlets
according to the order placed.
2.2 Garments department of Surya Nepal
Fig 2: Garments Department of Surya Nepal
5
2.2.1 Merchandising and procurement:
It refers to the step in Operations where the raw materials for the fabrics are procured. It
contains the following activities:
Maintaining the supply chain
Procurement of finished goods and fabrics
Adhere to the requirements given by the sales plan
Make a procurement plan
Procurement plan is made for trims (containing thread, buttons, fusing etc.) and fabric. It mainly
contains the plan to either import or to locally manufacture.
Under importing, the ratio between finished goods and fabrics is decided.
1. Production and Quality:
Under the production and quality section, the department looks after the following activities:
1.1 Production which is locally manufactured
1.2 Maintain John Players and Springwood quality standards.
1.3 Timely deliver the goods to the market
1.4 Choose the converters; i.e. those who convert the raw materials to finished
products.
CHAPTER III
6
INVENTORY MANAGEMENT
Inventory Management is the supervision of supply, storage and accessibility of items in order to
ensure an adequate supply without excessive oversupply.
It can also be referred as internal control - an accounting procedure or system designed to
promote efficiency or assure the implementation of a policy or safeguard assets or avoid fraud
and error etc.
The overseeing and controlling of the ordering, storage and use of components that a company
will use in the production of the items it will sell as well as the overseeing and controlling of
quantities of finished products for sale. A business's inventory is one of its major assets and
represents an investment that is tied up until the item is sold or used in the production of an item
that is sold. It also costs money to store, track and insure inventory. Inventories that are
mismanaged can create significant financial problems for a business, whether the
mismanagement results in an inventory glut or an inventory shortage.
Successful inventory management involves creating a purchasing plan that will ensure that items
are available when they are needed (but that neither too much nor too little is purchased) and
keeping track of existing inventory and its use. Two common inventory-management strategies
are the just-in-time method, where companies plan to receive items as they are needed rather
than maintaining high inventory levels, and materials requirement planning, which schedules
material deliveries based on sales forecasts.
3.1 Inventory Management in John Players:
3.1.1 Warehousing:
The warehouse of John Players are divided into two parts; namely: Fabric and Raw
materials.
In fabric warehouse, the finished clothing are stored.
In raw material warehouse, garments, trims, fusions and buttons are stored
John Players is planning to combine these two warehouses into one so as to increase
mobility and reduce costs.
3.1.2 Stock On Hand:
7
John Players maintains a stock at hand report. The employees at the warehouse report
regularly to the head office about the stock at hand. The SOH (Stock On Hand) report is
then analysed and planning is done whether to make manufacturing or importing plan.
The Stock on Hand report contains report about the finished goods as well as raw materials,
known as RM Book of Stocks. For eg: 21,000 shirts are there in the warehouse.
For every item, there are different Units of Measurement (UOM). Fabrics are measured in
either yards or meters depending upon the supplier.
It also categorises the stock based on the price level.
The SOH report is the main determining factor regarding the procurement plan.
The inventory in John Players refers to the following:
Fabrics
Buttons
Fusing
Finished goods
The inventory management of John Players are divided into two parts; namely: Finished goods
and Raw materials.
Under finished goods, procurement plan is done.
Procurement plan:
John Players works under the plan that there are 2 seasons for production as well as
consumption. The seasons are:
SS (Spring Summer)
AW (Autumn Winter)
The planning under the Procurement Plan is done on the basis of these seasons. This
department makes the plan to look after the final procurement of the goods. The sub
departments under this are:
8
Season Planning
Under this, the planning about the production is made. Here, planning is always
done a season prior so as to be ready to supply in the exact required season.
Sales Planning
Under this, the plan regarding the sales and sale strategies is formulated.
Raw material plan:
This plan concerns about the raw material management. In the John Players warehouse,
certain amount of inventory is maintained in certain amounts. The amount may vary
according to plan and the items to be maintained may also vary.
CHAPTER IV
FORECASTING
9
Forecasting is a prediction of future events used for planning process. It is not possible to make
decisions in production scheduling, purchasing, and inventory levels until forecasts are
developed that give reasonably accurate views of demand over the forecasting horizon.
Management need accurate forecast to ensure supply chain management. Accurate forecast
allows schedulers to use capacity efficiently, reduce customer response times and cut inventories.
Managers need forecast to anticipate changes in prices or costs or to prepare for new laws or
regulations, competitors, resource shortages or technologies.
Forecasting is necessary for companies like John Players that manufacture items for inventory.
Manufacturers will use material forecasting to ensure that they produce the level of material that
satisfies their customers without producing an overcapacity situation where too much inventory
is produced and remains on the shelf. Equally, the forecast must not fall short and the
manufacturer finds them without inventory to fulfil customer’s orders. The cost of failing to
maintain an accurate forecast can be financially catastrophic.
Forecasting in John Players:
Forecasting is done by the sales department as they are more proximate with the sales team in the
organization that can provide valuable inputs and insights to be used in forecasting The
Company uses its proprietary model coupled with other assumptions for forecasting. Key inputs
used include:
• Previous years’ volume data: Such data are compiled from internal sales record and
extrapolated using other assumptions that follow.
• Inflation: The Company adjusts its unit selling prices based on inflation expectations in short
and long term so as to model future sales.
• Seasonality: John Players works under the plan that there are 2 seasons. The seasons are: SS
and AW.
• Assumptions: Forecasting is based on certain assumptions based on management’s experience,
knowledge and judgement.
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• Outlets: Further, in order to forecast total sales volume in the next quarter, the company makes
forecast by each point of sales (outlets) and aggregates them.
CHAPTER V
SALES OVERVIEW
11
The planning for sales is a very important as well as challenging process for any organisation. In
a manufacturing company such as Surya Nepal, the sales consist of the outflow of clothing and
generation of revenue from it. An organisation has to create an individual product production
schedule and match the customer’s order through the sales and operations planning activities. It
links the company’s strategic capacity planning into detail process.
5.1 Sales Procedure in John Player
After passing all the quality checks required for approval, the products are then sent to the
warehouse for storing. From there, they go to the outlets for sale.
The flow of cash is exactly opposite than that of the flow of goods. The goods move from
warehouse to outlet where as the cash moves from outlet to headoffice.
5.2 Types of Outlets
John Players are distributed in the following types of outlets:
5.2.1 EBO (Exclusive Brand Outlets):
These types of outlets are the ones that sell only John Players shirts. There are over
70 outlets all over Nepal.
5.2.2 LFR (Large Form Retailers):
These are the types of outlets that sell different types of products. For eg:
Bhatbhateni, Saleways etc. sell other various types of products but they also sell John
Player garments.
5.2.3 MBO (Multi Branded Outlets):
These types of outlets refer to the ones which sell only garments but they sell John
Players garments too. These types of outlets are very common. They sell various
brands of garments.
CHAPTER VI
SUPPLY CHAIN MANAGEMENT
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A supply chain is a network of supplier, manufacturing, assembly, distribution and logistics
facilities that perform the function of procurement of materials, transformation of these materials
into intermediate and finished products, and the distribution of this product to customers.A
supply chain consists of three types of entities: customers, a producer, and the producer's
suppliers. The extended supply chain includes customers’ customers and suppliers’ suppliers.
Supply chain management oversees and optimizes the processes of acquiring inputs from
suppliers (purchasing), converting those inputs into a finished product (production), and
delivering those products – or outputs - to customers (fulfillment).Importance of Supply Chain
Management in Modern BusinessesBy Razamith SovereignSupply Chain Management (SCM) as
defined by Tom McGuffog is "Maximizing added value and reducing total cost across the entire
trading process through focusing on speed and certainty of response to the market." Due to
globalization and ICT, SCM has become a tool for companies to compete effectively either at a
local level or at a global scale. SCM has become a necessity especially for manufacturing
industry when it comes to deliver products at a competitive cost and at a higher quality than their
competitors. Here is some of the reason SCM has become important to today's manufacturing
industry: -Competitive Edge through Core Competencies. Today's business climate has rapidly
changed and has become more competitive as ever in nature. Businesses now not only need to
operate at a lower cost to compete, it must also develop its own core competencies to distinguish
itself from competitors and stand out in the market. In creating the competitive edge, companies
need to divert its resources to focus on what they do best and outsource the process and task that
is not important to the overall objective of the company. SCM has allowed company to rethink
their entire operation and restructure it so that they can focus on its core competencies and
outsource processes that are not within the core competencies of the company. Due to the current
competitive market, it is the only way for a company to survive. The strategy on applying SCM
will not only impact their market positioning but also strategic decision on choosing the right
partners, resources and manpower.
The supply chain management of Surya Nepal pvt.ltd. of its john players products are studied
which includes the product initiation stage to finished product stages.
TIME LINE OF SUPPLY CHAIN MANAGEMENT
13
PURCHASING ORDER TO SUPPLIER
(20-30 DAYS)
SHIPMENT OF RAW MATERIALS
(3-5 DAYS)
STORAGE FIRM WAREHOUSE
(45-60 DAYS)
MANUFACTURING AND ASSEMBLING THE FINISHED PRODUCTS
(5-7 DAYS)
DISTRIBUTING THE FINISHED GOODS
THIS WHOLE CYCLE TAKES 2-3 MONTHS AND THE AVERAGE 2000-3000 UNITS OF
SHIRTS ARE MADE PER MONTH.
14
Fig 3: Supply Cycle
(a) Suppliers
Surya Nepal Pvt.Ltd. has only international suppliers. The international suppliers for
materials like fabrics, buttons, trims and accessories are imported from India only.
(b) Distributors
Distributors are responsible agents to sell the products in the market, along with this they
advertise their products. Surya Nepal Pvt.Ltd itself plays a role of distributor and deals with
around fifty wholesalers all around Nepal. These distributors Surya Nepal Pvt.Ltd (john
players) products all around Nepal to various wholesalers and retailers.e.g Bhatbhateni are
major market for the sale of john players products.
(c) Wholesalers and Retailers
Almost fifty Wholesalers and Retailers all around Nepal order Surya Nepal Pvt.Ltd products
i.e. john players shirts. These all will be manufactured by the Surya Nepal Pvt.Ltd.
(e) Customers
Customers of Surya Nepal Pvt.Ltd products i.e. john players shirts are mostly professionl
people.
supplier(john players)
manufacturer
distributorwholesalers
customers
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6.1 Cycle View of Supply Chain management.
The cycle view of john players supply chain consists of five different stages of cycles that
run between two stages each of the supply chain. It consists of the planning stage, Customer
Order Cycle, Replenishment Cycle, Manufacturing Cycle and Procurement Cycle.
Fig 4: Cycle view of supply chain
planning
procurement cycle
manufacturing cycle
repleinshment cycle
customer order cycle
Management teamSupplier
manufacturer
retailer
customer
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6.1.1 Planning
Cycle of supply chain starts with the planning of the sale of products. Management team
forecast about the annual sale. They calculate the demand of raw materials and the divide
for the monthly sell. After planning about the requirement needed it goes for the
procurement cycle.
6.1.2 Procurement Cycle
The Procurement Cycle takes place between the Manufacturer Surya Nepal Pvt.Ltd and
the Supplier. It consists of the following four phases:
Order components based on production schedule: As per the production schedule
prepared by Surya Nepal Pvt.Ltd it determines the supplies required for production
and uses e-mail to send its orders to its suppliers.
Production Scheduling: The suppliers after receiving the order from Surya Nepal
Pvt.Ltd, prepare a production schedule to meet the order.
Manufacturing and Shipment: The suppliers then start manufacturing of the
components such as fabrics, buttons, trims and accesories etc and use different
transportation mediums to deliver their products to Surya Nepal Pvt.Ltd facilities.
6.2 Procurement cycle of FUDCO supply chain:
procurement cycle
order component based on
production schedule
receiving
manufacturing and shipment
production scedule
17
Fig 5: Procurement cycle of FUDCO supply chain
6.2.1 Manufacturing Cycle
The Manufacturing Cycle takes place between the wholesaler and the Manufacturer. It
consists of the following four phases:
Order Arrival from wholesaler or retailer: In this phase the retailer e-mails the
manufacturer Surya Nepal Pvt.Ltd stating the products and quantities of those
products required. All orders are placed via e-mail.
Production Scheduling: Surya Nepal Pvt.Ltd after receiving the order of the
distributors plans a production schedule to fulfill their demand if its current
warehouses do not have the required number of products. According to that schedule
the next production plan is carried out.
Manufacturing and Shipment: Surya Nepal Pvt.Ltd the starts manufacturing the
products in huge numbers and contacts different transportation mediums such as
trucks, vans (sometimes airlines) to deliver its products to the distributors.
Receiving: The manufacturer receive the products and verify the products as per
their order and issue complaints if any shortage or damaged products are received.
6.3 Manufacturing Cycle Surya Nepal Pvt.Ltd Supply Chain
Fig 6: Manufacturing Cycle Surya Nepal Pvt.Ltd supply chain
6.3.1 Replenishment Cycle
The Replenishment Cycle takes place between the Retailer / Wholesaler and the
Distributor. It consists of the following four phases:
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Retailer / Wholesaler order trigger: In this phase the Retailer / Wholesaler use
fax, phone or human resources to order required products in large quantities from
the best distributor. In most cases the retailers contact the closest distributor or
the one offering the largest percent of discount.
Retailer / Wholesaler Order Entry: To fulfill the Retailer / Wholesaler order, the
distributor first records all the product order and prepares an invoice.
Retailer / Wholesaler Order Fulfillment: Then the distributor then uses its human
resources to collect the required number of products and pack them in bundles. It
also chooses the appropriate transport medium to send the goods to the Retailer /
Wholesaler.
Retailer / Wholesaler Order Receiving: Finally the Retailer / Wholesaler receive
the sent goods, count them to check they are in the right number and stock them
in his store.
6.4 Replenishment Cycle of Surya Nepal Pvt.Ltd supply chain
Fig 7: Replenishment Cycle of Surya Nepal Pvt.Ltd supply chain
6.4.1 Customer Order Cycle
The Customer Order Cycle takes place between the Customer and the Retailer or the
Wholesaler. It consists of the following four phases:
Customer Arrival: In this phase the customer comes to a retail shop or a wholesale
store and requests for his desired product.
Customer Order Entry: To fulfill the customer order, the retail / wholesale shop
owner first enters the product’s name and quantity desired by the customer.
19
Customer Order Fulfillment: Then the retailer / wholesaler then searches for the
product in his shop so as to fulfill the customer request.
Customer Order Receiving: Finally the shop keeper gets the product and gives it to
the customer in plastics or in some cases in cartons.
6.5 Supply Chain Strategy of Surya Nepal Pvt.Ltd
Fig 8: Supply chain strategy
Surya Nepal Pvt. Ltd aims towards being efficient by following the strategies given below:
(a) Minimum Cost: Surya Nepal Pvt. Ltd focuses on providing its products at minimum possible
competitive cost. It strategy are to sell less quantity in marginal profitable price with better
competitive quality.
efficient
mass production and customization
minimum cost
new techonology
outsourcing
20
(b) Mass production: Production of products in line assembly fashion, so that hundreds of
products are produced at a time. In fact, the production facility of Surya Nepal Pvt.Ltd can
produce 2500-3000 shirts per months.
(c) New technology: use of the new technology has provided the greater efficiency to the
production in large scale.
(d) Outsourcing: john players products are outsourced from the India. About 40-50% products
are outsourced as finished goods and remaining received as raw materials for the own
manufacture.
6.5 Challenges in operation of Supply Chain
6.5.1 Political Environment:
The adverse political environment of the country is the major hurdle in the operation of
Supply Chain. Frequently occurring strikes and unstable situation creates problem in the
operation of Supply Chain. The frequent occurrence of Nepal bandas has had a very
negative impact on Surya Nepal Pvt.Ltd and its supply chain parties. The unstable
political situation makes it difficult for Surya Nepal Pvt.Ltd to deliver its products to
distributors and get its supplies on time.
6.5.2 Accessibility:
Another major challenge is accessibility of resources, accessibility to probable markets
and customer segments. The infrastructure in Nepal is very poor. The limited availability
of roads and highways makes it impossible for Surya Nepal Pvt.Ltd to provide its
products in many areas and exploit local resources.
6.5.3 Load Shedding:
Load shedding is one of the biggest problems for a manufacturing company like Surya
Nepal Pvt.Ltd. Productions in both facilities are facing problems due to electricity
shortage. Also, there has been high expense made on huge generators that can support the
entire facility production. Surya Nepal Pvt.Ltd places and receives all its orders through
the internet so electricity is necessary not only for production but also for order arrival
and order fulfillment.
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CHAPTER VII
CAPACITY PLANNING
Capacity is defined as the ability to hold, receive, store or accommodate, it is viewed as the
amount of output that a system is capable of achieving over a specific period of time. Capacity
determination is required to meet the current and future demand.
Surya Nepal plans the production process one year before for the garments of John Players. It
takes nearly 3-4 months to produce a batch of garments. Surya Nepal produces monthly 2000-
3000 pieces of garments. New patterns are brought by the suppliers to the company and the
designer team finalizes the patterns and places the order. Even though the market of Nepal is
complicated and changing continuously, it doesn’t affect the demand of John Players because it
is a branded company and it focuses on being flexible as per the changing need of the market.
Since 50% of the garments are directly imported from India, the other half is produced in Nepal
through various manufacturing companies. One of the manufacturing companies is located in
Bhaktapur.
For the equipment and machineries, Surya Nepal evaluates various manufacturing company and
chooses the best one. The manufacturer has to meet the minimum standard set by them and John
Players. It evaluates the location, plant layout, machine technology, quality system, etc. Surya
Nepal first asks the manufacturer to develop a sample according to their standard of John
Players. If they are satisfied with the sample, the company and the manufacturer go into an
agreement and then places the order.
7.1 Process System
John Players focuses on low volume production and high variety. It has a hybrid process
which means it produces before customer orders and also produces according to customer
preferences.
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The process system of John Players under Surya Nepal are as follows:
Fig 9: Process System
Material Testing
Process Quality Inspection
Audits
PQRS (Product Quality Rating System)
23
Stage 1: Material Testing
Fabric: In this stage, firstly they get fabric from the suppliers. After selecting and testing the
fabric, it is passed and then product order is done.
Trims and Accessories: In this stage, the company selects the best supplier for accessories
such as buttons, thread, etc. If any physical problems exists, then it is returned.
Stage 2: Process quality inspection
In this stage, the quality of the products are inspected in between the production process. In this
stage the checking of threads, attachments of cuff, etc. is done.
Stage 3: Audits
In this stage, the factory finished garments are checked at the stage of packing. It is done before
sending to the distributors. The packed products in the warehouse is also inspected.
Stage 4: PQRS
This is the last stage in which across brand evaluation is done. After the garments are send to the
outlet, their products and the products of other brand such as Peter England, Zara are evaluated.
7.2 Product Design for John Players
John players is a leading and known brand for it's unique designs and quality looks in Nepal
where in the urban areas men's clothing fashion is associated with western current civilization.
Though john players is an Indian brand half outsourced from India and half manufactured here in
Nepal, the design and fashion of the clothing is much less affected by the Indian fashion and
more of the western countries including some asian nations like China, Korea, japan, etc.
As the designs are not massively customized and are kept to provide a unique touch to every
single production, they are carefully and exclusively designed to meet the current demands of the
market focusing of it's brand rather than to supply with heap monotone production. Designs are
decided by a range of architects selected by the company to provide with their customized
designs.
Now this brand selects a series of steps before selecting a specific design in every production
24
Fig 10: Product Design Chart
RA APPROVED
FABRIC SLECTION FROM LRBD NOMINATED
FABRIC SUPPLIERS
FABRIC TESTING
FROM LRBD
PI/PO PROCESS
FABRIC INHOUSE IN
RWH
FABRIC TO UNDERGO 100%
INSPECTION
4 POINT SYSTEM. IF IT FAILS, INFORM TO
HOD
DESIGN AND POTO SAMPLE
DEVELOPMENT
GPT APPROVED
W/O AND COSTING
ISSUE OF INSTRUCTIONS AND
MATERIALS
Process Design Chart
25
ISSUE OF INSTRUCTIONS
AND MATERIALS
PRE PRODUCTION
MEETING
SIZE SET DEVELOPMEN
T
MANUAL FABRIC CONSUMPTION
CHECKING
IF DEVIATION AGAINST W/O THAN REVISED
THE W/O
APPROVAL FOR BLUCK
CUTTING
SPREADING AND
CUTTING OF FABRIC
FUSING OF CUT PANELS
TICKETING AND
BUNDLING
CUTTING ROOM AUDIT
ISSUE CUTTING TO STITCHING
STITCHING OF CUT PANELS
TO GARMENT
INLINE CHECKING
OF GARMENT
END LINE CHECKING
26
END LINE CHECKING
BUTTON HOLE/
ATTACHED
THREAD Trimmin
g
100% GARMEN
T LOOSSE CHECKIN
G
PRESSING
FINAL CHECKIN
G
PACKING &
FOLDING
FINAL INSPECTION
PREPARATION OF
PACKING LIST
AQL AUDIT
PQRS
SHIPMENT PASS
PACKED GOODS
TRANSFER TO RWH
27
7.3 Design process for John players’ product
7.3.1 RA approved
Firstly a meeting is done with a range of architects professionally involved on the design
and fashion world for the case of fabric selection patterns. The decision is made on whether
to use the existing patterns, existing patterns with a hint of changes or new designs to
introduce into the market. The decision on the design is approved by the RA department.
7.3.2 Fabric selection
Shortly afterwards, the fabric is decided on the basis of the decision and quality that will is
approved by RA and the selection is done of the fabrics that is on display by the suppliers.
7.3.3 Fabric Testing
This step is done by the authorized testing department, where the 100% approved testing is
done for the quality of the fabric to be used on production.
7.3.4 Fabric In-house
After the step of testing is done, then the fabrics purchased are stored in the warehouse to
be used when in production.
7.3.5 Fabric inspection
The checking of the fabric used is done in this step to see if the fabrication is perfect for the
design and if passed fabric patterns are addressed.
7.3.6 Design selected
Then a appropriate design is selected according to the fabric and patterns selected. For this
process an array of talented and fashion top notched people are made involved to select a
design that suits the current season and preferrance of the focused people.
7.3.7 Sample development
Then a preferred sample is developed according to the design selected.
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7.3.8 GPT
In this step the garment preference test is done with a research team working for it where
the preference is tested by sending the samples or the few bundles of production into the
market.
7.3.9 Issuing of the materials
If the garment’s sample is approved and preferred in the market, then the required materials
are issued with discussions with the workers, like cost of making and things required.
7.3.10 Pre-production meeting
Different styles have different converters, location and manufacturer. They give specific
styles to specific styles and thus with provided materials a pre-production is done of the
designs and fabric choosed.
7.3.11 Size set development
Size, small, medium, large, washing, non-washing all are developed as per need and in
defferent quantities.
7.3.12 Manual-fabric consumption
Fabric consumption is the most consumed and most costly part of the product. 70-75%
fabric cost is of the fabric and 30% is of the production cost.
7.3.13 Fusing and cutting of the fabric
Fabric , layer cutting starts in the mass volume, fusing is done afterwards. One layer
consists of different part in the cutting layer where the process is done after the approval
for block cutting.
7.3.14 Ticketing and bundling
Then a suitable tag mark is tied in each one of them, with standard logo, price and the
description of the material and shirt, and also bundled up in suitable categories of shirts
and t-shirts.
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7.3.15 Cutting room audit
The products are then in random audit pattern again to check for the cutting standard.
7.3.16 Issue cutting to stitching
Then the main carving are done by stitching, buttoning, finishing, pressing and thread
cutting which actually gives the major module and design to the products. Every part has
different worker in them like buttoning department, collar department. Then the stitching
of the cut line patterns to main line garments are readily produced.
7.3.17 Inline checking of garment
In inline checking of garment, quality of the finished product is checked and an overall
view is done to the finished product.
7.3.18 End-line checking
Then the end-line checking of garment is done by 100% checking the inside and outside
of the garment.
7.3.19 Button-hole attached/ Thread trimming
Then touching up works like button attaching, hole making and remaining thread
trimming is done to give the product a smooth finish.
7.3.20 Final checking and trimming
Again a final trimming is done to sure not leave any thread attached to the clothe and also
final pressing and measurement check is done.
7.3.21 Packing and folding
Then the finished shirt is packed and folded in a given standard display by the designer.
7.3.22 Final inspection
Then for the final inspection is done in order for it to be so dispatched.
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7.3.23 Preparation of packing list
Then the preparation of transfer to retailer, documentation, quality audit report is to be
done.
7.3.24 Shipment pass
Then the final good is delivered to the outlets concerning the selling of john players'
clothing through where the various designed shirts with different fabric used are provided
to the customers.
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CHAPTER VIII
TOTAL QUALITY MANAGEMENT
8.1 Quality
Quality is a consistent commitment to certain standards that achieve uniformity of a product
in order to satisfy specific customer or user requirements. ISO 8402 1986 standard defines
quality as "the totality of features and characteristics of a product or service that bears on its
ability to satisfy stated or implied needs." Thus, quality is simply the degree of excellence of
something.
8.2 Total Quality Management
A core definition of total quality management (TQM) describes a management approach to
long-term success through customer satisfaction. In a TQM effort, all members of an
organization participate in improving processes, products, services and culture in which they
work. It consists of organization-wide efforts to install and make permanent climate in which
an organization continuously improves its ability to deliver high-quality products and
services to customers. The brand, John Players falls under the premium quality.
8.2.1 Total quality for John Players is:
• Meeting Customer’s Requirements
They have always tried meeting customer's demand. As for Nepal, at times when Korean
fashion entered the country, the firm tried to bring style of fitting shirts, jeans etc. Entries
of slim fit attire were brought in the market to meet customers demand.
• Freedom from Failure (Zero Defects)
They target zero defect approach for their products and past operations have also gained
in zero defect result.
• Consistency
They improvise the quality of their product and hunt for the competitive market.
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• Continuous Improvement
They keep assorting their product according to consumer demand. For instance, along
with men’s clothing line as John players, they also managed to introduce clothing line for
females as Miss Players.
• Quality in Everything they do
They check quality right from the start. Quality in manufacturing, fabric, raw material,
process quality, sewing and so on defines their standpoint of total quality.
8.3 The Road Map of Quality Assurance
Stage 1: Material testing
Fabric Testing – The testing is done In LRBD, which is a one of the division of
ITC.
Trims & Accessories Testing- This is also done from LRBD Nominate
Suppliers.
Stage 2: In-process -Quality inspection
Cutting Inspection –In factory location
In-line Inspection –In factory location
End-line Inspection –In factory location
Final Inspection –In factory location
Stage 3: PQRS
PQRS (product quality rating system), is a reporting program that uses a
combination of incentive payments and payment adjustments to promote reporting of
quality information by eligible professionals. PQRS Check own product
performance. PQRS is also used across brand evaluation.
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8.4 Improving quality through TQM
8.4.1 Purchasing consideration
Quality of inputs can affect the quality of the firm’s work. The firm must emphasize not
only the cost and speed of delivery to the supplier but also on the quality of product. JP
focuses on quality of their fabric right from the purchase of the inputs. The quality
inspections are made accordingly. They have also directed to keep number of suppliers so
that they do not have to rely just on few.
8.4.2 Product and service design
In order to improve the quality, they also focus on product and service design. For
instance, in order to improve the quality they focus on minimal variations. However, due
to requirement of competitive market they manage to keep variety of products in low
volume.
8.4.3 Process design
The design of the process used to produce a product greatly affects its quality. They have
well equipped machineries to transform raw materials into finished goods, which cover
larger part of process design. Along with that, there is auditing in every process. Such as
assessment while cutting the fabric, stitching, adjusting buttons, pressing etc makes their
process design up to the mark in terms of quality improvement.
8.4.4 Benchmarking
Benchmarking is a process of comparison against competitive products and principles in
order to standardize the product. In context with John players, they make comparison
with some famous brands like zara, peter England etc. They try to adopt what they are
lacking. Therefore, it can be considered that these brand names are the major players in
the market. In addition, benchmarking is not only limited to competitors rather
comparison is made with world standards as well.
8.5 Acceptance sampling
It is a form of inspection of goods in order to determine what percentage of the total lots
or batch of goods confirm to the required specification. There are certain criteria while
performing acceptance sampling. Like, defects up to some approval point are passed
otherwise rejected. Whatever product they manufacture here in Nepal, they manage to get
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two samples i.e.: one for Surya Nepal and another for their main franchise in India.
Acceptance is based on quality level and trims quality. In addition, there is quality report
in each shipment and only after proper inspection, they are released to retailer. Sampling
for local market is done in Nepal itself to formulate acceptance sampling.
For acceptance sampling, they follow AQL approach, which is a quality assurance level
for them. AQL stands for acceptance quality level, which refers to maximum acceptable
percentage of defectives defined by producer. A lot containing almost all good quality,
containing less number of defective items is called Acceptance Quality level (AQL).
8.6 AQL Calculation Process
AQL Inspection is carried out on packed shipment.
Statistical table MIL-STD-105D is used for the purpose.
The table is referred for pulling out the sample lot from the shipment.
The lot to be inspected is divided as per the number of colors in the shipment and as
per the size ratio in each color.
Garments are taken out randomly across the colors and sizes in the shipment.
Defects found are categorized into major and minor defects.
8.7 AQL Checklist
Major Defect
• No button
• Non Barcode, size Label, wash care
• Missing main label, Brand Label
• No bar tack
• Joint stitch
• Needle hole
• Spots mark
• Open stitch
• Measurement checking
• Fraying of the material
• Rough stitch
Minor defect
• Broken stitch
• Joint stitch
• Wavy stitch
• Raw edges
• Skip stitch
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8.8 International Quality Standards
Under international quality standards there are series of standards agreed upon by the
International Organization for Standardization (ISO). The quality standards that are followed
by John players are as follows:
8.8.1 Four point system
Normally, four point system is used for inspection of finished garments. John players
use this technique for fabric inspection as per quality standard.
The 4-Point System assigns 1, 2, 3 and 4 penalty points according to the size and
significance of the defect. No more than 4 penalty points can be assigned for any
single defect. Only major defects are considered. No penalty points are assigned to
minor defects. In this system, one should inspect at least 10 per cent of the total rolls
in the shipment and make sure to select at least one roll of each color way.
8.8.2 Garment Performance Test (GPT)
Under appearance, visual observations are made regarding any changes in the fabric after
washing. Defects like puckering, pilling, free movement of zipper etc are examined. Four
tests are performed under it, namely:
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dimensional stability
appearance
seam slippage
button pull test
8.9 Tools of TQM
Flow chart
The major tools they use for total quality management is flow chart also known as the
process chart. It is used for following purpose
- For product design and process design
- Style, mood and fit of garment
- Cutting Audit Procedures
- Sewing to Finishing
8.9 Quality awards and certificates
8.10.1 ISO 14001-2004 Certificate (November 2005)
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8.10.2 ISO 9001:2000 Certificate- Garments (October 2005)
Recommended