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Dr. Gordon YenEnhancing Supply Chain Visibility in
Fountain Set with SCOR Model
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Basic Information of FSHLBasic Information of FSHL• Knitted fabric mill founded in 1969
• One of the world’s largest with over
50k tons of monthly capacity
• Highly vertical-integrated operations - Spinning, Knitting, Dyeing, Printing, Finishing & Garment Production
• Ship fabric to over 40 countries for supply chain of internationally renowned brands
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Multiple ChallengesMultiple Challenges• Fragmented supply chain
• Highly customized product quality and design requirements
• Large work-in-progress inventory
• Short lead-time High penalty on delay
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Solution (SCOR) Solution (SCOR)
Collaborative project between GS1 and FSHL - To examine the entire ‘MAKE’ process
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Objectives Objectives
• To find out how time is spent on value-added and non-value added processes
• To provide insights for improvement
* Increasing visibility in the ‘MAKE’ production process* Reducing production time and cost
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• ‘MAKE’ process in FSHL
– Knitting– Dyeing – Finishing mills– Quality Control– Packaging and staging– Delivery
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Value-stream analysisValue-stream analysisMeasure process performance with average length of time spent on each process
ValueAdded
ProcessKnitting
TheMAKE
Process Non-valueAdded
Process
QC&
PackagingDyeing Finishing
GreyFabric
Staging
DyedFabric
Staging
FinishedFabric
Staging
PackagedFabric
Staging
Delivery
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Recommendations For Cycle Time Recommendations For Cycle Time ImprovementImprovement
Value Added Process
Process Time Without Affecting Product Quality
•Use additional facilities/resources to improve productivity
Non-value Added Process
Staging Time
•Eliminate unnecessary staging/delay or minimize staging through root cause analysis
TheMAKE
Process
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• Potential Root CausePotential Root Cause
FabricStaging
ExternalProcess
InternalProcess
• Awaiting customers’ provision of color assortment information
• Awaiting customers’ approval of fabric swatch (on color, architecture, etc.)
• Awaiting instructions from production planning
• Awaiting availability of materials
• Awaiting availability of machinery
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• Further break down steps through Work Breakdown Structure (WBS)
• Study each step and define a standard time
• Capacity can be obtained
• Prepare optimized production plan through staff experience or production scheduling software
• Compare the production plan with the actual output - Performance can be measured
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DefineStandard
TimeFor
All StepsUnder the
WBS
IdentifyManufacturing
CapacityFrom theStandard
Time
Optimizationof
ProductionPlan
AchieveDefined
Performance
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Set up Internal Benchmark & Model
Operation
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• Standard knitting time by fabric architecture, material, and knitting machine type
• Standard dyeing time by material type, color or by volume
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• Under the SCOR model, performance are measured by
– Fill rate – Cycle time
• In FS’s operation,
– Fill rate can be defined as• % of batch orders completed within standard time
– Cycle time can be defined as • Average cycle time of a batch order
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• Set a target performance level for each, e.g.– % of batch orders completed within standard days
• As-Is: 80%, To-Be: 90%
– Average cycle Time• As-Is: 30 days, To-Be: 25 days
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Improve Accuracy of Cycle Time Measurement
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• Moving from manual record to barcode scanning system
• Also testing RFID for rapid and accurate measurement
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Overall benefits of the projectOverall benefits of the project
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• Performance quantification enhances supply chain visibility
• Eliminate wastes – stemming from over-production, transportation, over-
processing, waiting time, inventory, motion, and scrap
• Operational efficiency is enhanced in the overall supply chain
• Improve customer satisfaction
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Thank You
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