“IDENTIFICATION OF NON-VALUE ADDED ACTIVITIES IN

MERCHANDISING DEPARTMENT”

Presented ByRohit Kumar,

Master of Fashion Management,NIFT-Patna

COMPANY PROFILE

The Raymond Group was incorporated in 1925 and within a span of a few years, transformed from being an Indian textile major to a global leader.

It is one of the leading, integrated producers of suiting fabric in the world, with a capacity of producing 31 million meters of wool & wool-blended fabrics.

After making a mark in textiles, Raymond forayed into garmenting through highly successful ventures like Silver Spark Apparel Ltd., EverBlue Apparel Ltd. (Jeanswear) and Celebrations Apparel Ltd. (Shirts).

SILVER SPARK APPAREL LIMITED

Silver Spark Apparel Ltd. is a wholly owned subsidiary of Raymond Ltd.; marking the group's foray into the Global Apparel Outsourcing market. The unit manufactures suits and formal trousers catering largely to export markets.

State-of-the-art manufacturing facilities at the company's Doddaballapur plant enable it to produce 1.4 million suits, jackets and 2.6 million trousers annually.

MERCHANDISE

JACKETS SUITS TROUSERS VEST

CLIENT PROFILE

GAP INC (For Banana Republic and Banana republic factory store)

Li & Fung (For EXPRESS and EXPRESS Outlet) Peerless (For RALFH LAUREN, CHAPS,

DONALD J. TRUMP, JOHN VARVATOS U.S.A., Calvin Klein, TALLIA, DKNY and MICHAEL KORS)

ARMSTRONG AVITION (For ACC) J.C.PENNEY NAVADA (For ENRICO, ZETAGI, BALINO,

SCOZIA and FERARRO)

CLIENT PROFILE

PELLESTROMS (For DRESS MAN, VOICE, GEKAS)

STLONIE (For CH and PH) LIMS (For JOHN PEARSE) RAYMOND GROUP (For C.T., SUIT SUPPLY,

JACGER, SACOOR BROTHER, CORTEFIEL and WE)

HAGGER KURABO FLEX KONNACA

DEPARTMENTS AT SSAL

Merchandising Purchase Information Technology(I.T) Logistic Trim store Fabric store Production C.A.D Sampling Packing Finishing M.T.M - Made to Measure

H.R. Ware House Accounts Pattern EXIM P.P.C. Administration Operations I.E.D (Industrial engineering department) U&M general (maintenance) H.M.S – Hand Made Suits Quality Control and Assurance

MAN POWER

At Silver Spark Apparel limited the total number of man-power as on June and July 2014 is 2740.

This includes 270-Staffs 2400-Operators 20- security and 50-others on contract basis.

PRODUCTIN LINES

In production the lines are divided into four types as JKT(Jacket) lines, Trouser line, MTM (made to measure) and Vest line.

There are four major Jacket lines Line – 1 (With 120-Operations) Line – 2 (With 220-Operations) Line – 3 (With 120-Operations) Line – 4 (With 120-Operations) Capacity of 550 pieces per day Actual quantity are around 350

There are five lines in Trousers Line – 1 (950) Line – 2 (550) Line – 3 (550) Line – 4 (700) Line – 5 (550) With 80-90 operations in them

In MTM department the capacity is about 200 Actual capacity on an average of 50. In MTM there are 5 lines with the view in mind

of order to shipment with a lead time of 7 days.

Trousers capacity in MTM is found to be 150.

There is only vest production line in SSAL With 50-60 operation Total capacity of 600 The actual productivity per day is found

to be 350 pieces.

MACHINES

For cutting: - Gerber (Fully automatic spreading machine, Semi- automatic machine, Cutting)

CAD dept. use Gerber software Fussing :- Gerber Sewing :- Juki For shoulder pad:- Single Needle

Postbed Lockstitch

MACHINES

Finishing :- Buck Press Steam Press Trouser double-legger press Jacket shoulder press Carousel press Hand finisher

“Identification of Non-Value Added activities in Merchandising

Department” WHAT IS VALUE ADDED? ''Value is the change in the fit, form and

function of the product or service that customer is willing to pay for''.

WHAT IS NON-VALUE ADDED? Any activity that does not change the fit,

form and function of product or service is non-value added. Non-value added is also known as WASTE

Value Add of the Activity

The value-add assessment of the activity identifies an activity as one of the following:

• A real-value-add (RVA) activity • A business-value-add (BVA) activity • A non-value-add (NVA) activity

NVA(PURE WASTE)

Transportation waste: This refers to physical items and data rather than the movement of people.

Waste of Movement: This refers to the physical movement of people.

Waste of Waiting time: People or things waiting around for the next action.

Waste of Defects: Just the time and effort wasted when the “things” that you make are wrong or faulty – typo’s in a report, wrong price in a quotation, a system incorrectly installed.

Non-value added (NVA) is classified into two types.

Type I waste (ENVA) ENVA is an abbreviation of Essential Non-

Value Add. It signifies the activities carried out in the process that do not add any value to the customer but required for process completion

Typical examples of ENVA Backing up of computers for data storage

purposes does not add value to the service, but mitigates risk of data loss.

Type II Waste (NVA) I call this ‘’Pure waste’’. It signifies the

activities carried out in the process that do not add value to the customer and not required by the process

Typical examples of NVA Defects: Any defect that occurs during

the manufacturing or transactional process causes rework leading to delay in product or service reaching the customer.

IDENTIFICATION OF NVA

Structured Observation Unstructured Observation Natural Observation Questionnaire

Findings and Suggestions

1. For how many years have you been working at Silver Spark Pvt. Ltd. Doddaballapur?

0-1 Years 1-3 Years 4-9 Years >9 Years

What according to you are the Non-Value added activities in the merchandising

process, rate the following on a scale of 1-5?

Follow up with trim store for trims 1 2 3 4 5

Most of the Merchandiser feels as the purchase department does not follow up for the status so the merchandiser have to but it is not their part to follow up.

Follow up with factory for samples

Due to no proper commitment from sample department the merchandiser have to follow up even after the V-Stitch entry is made. No proper status of sample is entered by sample department on V-Stitch, as S V-Stitch ERP was made to check the status of samples.

Follow up with store for fabric availability

Because of no ERP system to detect or provide information the follow up is required.

Making swatches for trim card should be done by the merchandiser?

In SSAL the merchandiser does the swatch making work which not there job, as due to no specification given to the store for this work. The merchandiser feels that this work can be done by the Fabric store which will save a lot of time and can do other important work than to waste time in making swatches.

AFTER THE PREPARATION OF PACKING LIST, PRINTING OF CARTON STICKER SHOULD BE TAKEN CARE BY THE LOGISTIC DEPARTMENT?

FOLLOW UP FOR CARTON STICKER

As it is purely the work of Packing and Logistic Department but here in SSAL the Merchandiser does this work. Surely a Non-Value Added Activity.

Fabric purchase to be handled by merchandising team?

Both merchant and purchase department (proper information by merchant and processing by purchase with EDP)

IS IT REQUIRED FOR A MERCHANT TO PACK THE SAMPLES?

IS THERE A REQUIREMENT OF DISPATCH DEPARTMENT?

Till date the merchandiser in SSAL does the packing of the samples, Fabric for testing, preparing the invoice, generating Air Way Bill, Arranging packing carton, D.C. . There is a real requirement of dispatch desk in merchandising department, which have been answered by the another question

As both question are inter-related to each other and it clearly states that there is requirement of a dispatch department or desk in merchandising. Because it a Non-Value Added Activity for the merchandiser in SSAL.

Is it required to issue B.O.M to various departments even after the stage entry is

made?

Merchandiser in SSAL feels that it is not required to issue BOM, but due to less number of systems in various departments they have to issue. As the BOM is made available in their ERP system STAGE, so I clearly states that it is a Non-Value Added Activity for them.

Is it required to issue more than 2 files for bulk production?

In the department a lot of production files are made is unnecessary because for each style 10 files are made which has to be reduced. The merchandiser feels that it should be reduced from 10 to 4 only as it may save their time in printing and issuing.

Is it required for the merchandiser to follow up with the sampling

department at each and every step to avoid errors?

To avoid technical errors in the samples and rework, the merchandiser feel to follow up with the department. This is done even after the Sampling department is provided with all the specification of the sample to be made (including BOM, Tech-Pack etc...)

SUMMARY

Paper work should be reduced as Production files 10 sets have to be reduced.

Improvement in fabric & trims store in the inward/outward process with the help of software.

Purchase team should handle fabric purchase. Fully fledged ERP system with no error so that

profitability can be monitored after dispatch of each bulk or shipment leaving from factory.

Courier/Dispatch desk to be created in merchandising department

Trims/Accessories movement must be streamlined.

SUMMARY

Communication methods need to improve. Production related "Tech Pack" can be

forwarded through ERP or mail PO/ Cut Tickets/ Size breakup can take/

Collect from ERP (including BOM) After the preparation of packing list by the

merchandiser, printing of carton sticker should be taken care by the logistic department. Merchandisers do a lot of movement to get the packing carton stickers printed and delivered to Ware-House.

SUMMARY

Merchandiser in SSAL feels that it is not required to issue BOM, but due to less number of systems in various departments they have to issue. As the BOM is made available in their ERP system STAGE, so I clearly states that it is a Non-Value Added Activity for them.

Due to one printing machine the merchandiser some time have to wait in a long queue to issue various files like Production File, Sample indents, Pattern indent.

To check the status of samples, Bulk production, to get fabric for sample & Trim Card for buyers, Fabric testing merchandiser have to travel to unit-2 GBR which leads to transportation waste.

THANK YOU