Fashion Toolkit

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8/8/2019 Fashion Toolkit http://slidepdf.com/reader/full/fashion-toolkit 1/41 An Alliance o fve key partners working together to support the UK’s high-end designer manuacturing sector Introduction to the Alliance Fashion and Manu acturing Toolkit The Fashion Toolkit has been created to help designers communicate their needs effectively to production units. One of the most important components is the recommended Code Of Practice, which will provide the designers and manufacturers with a two-way assurance that both will adhere to a professional set of standards. In the UK, production units go under many names but the standard model is ‘CMT Factories’. CMT stands for Cut, Make and Trim – meaning that the factory supplies none of the fabric or components, apart from thread and bag, but only carries out manufacture with the materials supplied. This method of manufacture is the norm in this country for woven garments. If you develop production in the Far East it is much more common to buy garments as ‘fully factored’, i.e. where the factory supplies everything from fabric to button to zip. The fully factored system also generally applies to knitwear sourced in the UK, as the production of the garments is often carried out by the producers of the yarn. The golden rule is to establish exactly what is included in the price before an order (or docket) is conrmed by you to the factory. Having this clear from the start means that you are in full control of your prot margin and prevents unexpected surprises when the garments are ready and the factory needs paying. The knowledge compiled in this Toolkit has been gathered from industry professionals with many years of experience in dealing with garment production. The Toolkit has been designed to start you off, the ‘ne tuning’ can be developed to suit your own needs and the needs of your factories. Relationships between designers and manufacturers can be problematic for those who fail to understand the basic requirements necessary. Even the most experienced of Production Managers nd new challenges and problems with many of their orders. The Toolkit will give you a good start, but ultimately having good relationships will help ease any problems. The factories are businesses that rely on smooth and constant production to create prots. Don’t expect to build a great working relationship if you are frequently changing orders and dockets once they have been issued. Don’t forget that, as far as a factory is concerned, time really is money!

Transcript of Fashion Toolkit

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An Alliance o fve key partners working together to support the UK’s high-end designer manu acturing sector

Introduction to the Alliance Fashion andManu acturing Toolkit

The Fashion Toolkit has been created to help designers communicate theirneeds effectively to production units. One of the most important componentsis the recommended Code Of Practice, which will provide the designers andmanufacturers with a two-way assurance that both will adhere to a professionalset of standards.

In the UK, production units go under many names but the standard model is‘CMT Factories’. CMT stands for Cut, Make and Trim – meaning that the factorysupplies none of the fabric or components, apart from thread and bag, but only

carries out manufacture with the materials supplied.This method of manufacture is the norm in this country for woven garments. Ifyou develop production in the Far East it is much more common to buy garmentsas ‘fully factored’, i.e. where the factory supplies everything from fabric to buttonto zip. The fully factored system also generally applies to knitwear sourced in theUK, as the production of the garments is often carried out by the producers of theyarn.

The golden rule is to establish exactly what is included in the price before an order(or docket) is con rmed by you to the factory. Having this clear from the startmeans that you are in full control of your pro t margin and prevents unexpectedsurprises when the garments are ready and the factory needs paying.

The knowledge compiled in this Toolkit has been gathered from industry professionalswith many years of experience in dealing with garment production. The Toolkit has beendesigned to start you off, the ‘ ne tuning’ can be developed to suit your own needs andthe needs of your factories.

Relationships between designers and manufacturers can be problematic for those whofail to understand the basic requirements necessary. Even the most experienced ofProduction Managers nd new challenges and problems with many of their orders. TheToolkit will give you a good start, but ultimately having good relationships will help easeany problems. The factories are businesses that rely on smooth and constant productionto create pro ts. Don’t expect to build a great working relationship if you are frequentlychanging orders and dockets once they have been issued. Don’t forget that, as far as afactory is concerned, time really is money!

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Disclaimer

The Alliance partners make every effort to provide information which is relevant and ascomplete, up-to-date and accurate as possible. Any information and material provided isfor informative purposes only and should not diminish the individual’s obligation to seekappropriate professional advice where such is required or necessary. Neither the Alliancemembers nor any of their employees, agents or subcontractors can be held responsible orliable to users of the information or any other person for any errors or omissions, or forany losses, costs or claims which arise as a result of relying on such information or advice.

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Code o practice

Designers

I, the designer, in the process of placing production orders withyou, the factory, will ensure that:

• All technical requirements will be noti ed to youat, or before, the time of issuing the docket.These requirements include: order details, specialmaking requirements, trimmings required,speci cation sheets and measurement charts.

• Fabric and trimmings will be supplied for thisdocket in good time for satisfactory completionby the due date. All delays to components will becommunicated to you by email at the earliest possibleopportunity.

• We will provide you with a pattern for the docket, on whichwe expect the garments to be based. If the pattern requiresalteration prior to production we will rectify it in good time for yourcutting date. If the pattern has to be altered by you it must be with ouragreement and we understand there may be a negotiated charge for this.

• We will pay the invoice for the docket within the agreed payment terms. Anythingaffecting our ability to pay will be communicated by email as soon as it is known.

• We will take delivery of the nished garments on the agreed date unless a change haspreviously been agreed in writing.

• The fabric and trimmings on the docket remain the property of the designer at alltimes.

• All changes to orders, dockets, dates, prices, quantities etc. will be communicated inwriting to you at the earliest opportunity but no later than three working days prior tocutting.

• Any remedial work required will be noti ed in writing to you (the factory). You will begiven rst opportunity to rectify the problem, at your own expense, before costs areincurred with other contractors.

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Factories

I, the factory, in agreeing to make the designer’s orders, will ensure that:

• All technical issues arising that affect make, delivery date, sizing, price or quantity willbe communicated in writing to you as soon as we become aware of them.

• We may be required to alter a pattern on your behalf and will only do so with youragreement and once any extra charges have been agreed in writing.

• All deliveries of fabric and components received directly from suppliers on your behalfwill be recorded on the docket. The delivery note will be faxed or emailed to you thesame day as it is received.

• Shortages and damages to fabric and components will be noti ed to you, in writing,on the same day that they become apparent.

• We will agree a delivery date for every docket and communicate any changes to youbefore cutting and at least one week prior to delivery.

• The docket will only be accepted by us when we have agreed the delivery date andprice.

• We will invoice for the goods at the price agreed on the docket and will expectpayment within the agreed payment terms.

• Any extra costs, not previously agreed, will be noti ed to you in writing andproduction will only continue upon your written agreement.

• We will preserve the con dentiality and intellectual property of your designs by notusing your patterns without agreement or showing your designs to third parties.

• All fabric and trimmings remain your property. Any un-used fabrics and trimmings willbe returned to you in their entirety.

• Upon noti cation of a quality problem we will rectify the goods at the earliest possible

opportunity. This will be at no charge if it is our fault.• If the problem is caused by a third party we will notify, in writing, the cost of any

remedial work required prior to it being carried out.

Signed for the Designer :

Name:

Position:

Company:

Date:

Signed for the Factory :

Name:

Position:

Company:

Date:

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Critical pathmanagement

One of the principles of good practice in production management is having control andknowledge of the critical path for your orders. A critical path is a timeline that re ectsnot only the anticipated delivery date of your purchase orders but alsothe reality of the processes needed to ful l those deliveries. Itis vital to be aware of the impact that late deliveries willhave on your deliveries to your customers. Without properknowledge of the whereabouts of your fabric and trims inthe production process, you risk incurring disruption anddelay to your production and consequent cancellation ofyour orders and non-payment from stores.

Many designers use a proprietary software system forthe management of their critical path. These softwaretools can be a huge bene t to your business and, asyou grow, they become more and more vital. They canbe sourced on the internet under ‘fashion productionsoftware systems’. However, these systems do come ata cost and your business may not be ready to bear thisadministration expense just yet. But you are advised toinvest in them as soon as you are able to do so. If you arenot ready for a software system, you will need to create yourown method of critical path management.

The rst step is to know where everything for your orders is going tocome from and how long it takes to get them once ordered. You should have a roughidea of the lead times on fabric and trims before you take orders from your customers. It

is quite common, and not very professional, for designers to take orders on a particularfabric only to nd that it is unavailable due to long lead times, or that there are largeminimums that can’t be met by your order. It is no good quoting end-July delivery to yourstockists, if the Italian fabric supplier cannot produce your order until after the Augustclosure.

It is, unfortunately, quite common for some designers to assume that once the fabric hasbeen delivered to the factory, the dockets will go straight into production. Many factorieswill not, or cannot, start the production until all the accompanying trims are there. It isnot uncommon to hear of large orders being cancelled because the late delivery of labelsmeant that the docket ‘missed its slot’ in the factory’s production schedule. A delay with£10 of labels can jeopardise an order worth many thousands of pounds.

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The biggest in uence on your delivery dates is, however, how the factory performs oncethey have all the necessary components in their possession. If you visit a factory in Marchand it quotes you three weeks delivery, don’t assume that it will still be three weeks if youonly give them the docket in July, when the whole industry is so much busier.

Once you have sold your collection, and calculated the requirements for your purchaseorders of fabric and trims, you need to ensure that you keep track of each fabric and trimused in your collection so that they can be monitored. Don’t forget that it is not just thesephysical items that will affect the delivery date of your garments but also the services thatare required to bring your orders to fruition, e.g. pattern-cutting, printing, embroideringetc.

Best Practice

• Speak to all your suppliers and establish the lead-time for all the fabrics and trims inyour collection – do not guess.

• Create an Outlook diary (or similar) in which you can record when all your purchaseorders are due.

• Use this diary to check the progress with your suppliers on a weekly basis.

• Keep the factory informed of delays to docket components so that they can juggletheir production accordingly – it is in your best interests for the factory to be runningef ciently.

• Know which country your component orders are being produced in and the method ofshipping.

• Be aware of factory closures in holiday periods – Italy and France in particular.

• Don’t assume that the factory knows that vital fabrics and trims have been delivered tothem – warn them they are coming and get an acknowledgement that the items havearrived safely.

• If fabric or components are delivered direct from your suppliers to the factory, it is vitalthat the goods are checked for correctness and counted before the factory starts touse them.

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Garmentspecifcation

Using the Garment Specifcation Sheet This sheet should be given to the factory whenever:

A. You are requiring them to make a sample, or

B. When you issue a docket.

This will enable the factory, and the production staff in yourstudio, to know exactly what is supposed to happen with theconstruction and trims for each style.

Best Practice• Create the Garment Speci cation Sheet before you issue a

sample or production docket. Attach a copy to the sampleand the docket and keep a copy in your le attached to thecosting sheet.

• If requirements or components change, don’t forget to issuea new sheet to the factory.

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Your Name Here Date

Garment Description Style No.

Fabric 1 e.g. Red Silk Satin

Fabric 2

Fabric 3Seam Type e.g. Open - satin bound

Seam Allowance e.g. 4mm

Zip e.g. 18cm invisible

Fastenings e.g. 4 24l buttons

Stitches per inch e.g. 15

Thread Type e.g. Gutermann 70

Thread Colour

Interlining

Pad

Shoulder Roll

Binding

Key Measurement 1

Key Measurement 2

Key Measurement 3

Key Measurement 4

Key Measurement 5

Content Label

Logo Label

Swing Ticket

Hanger

Bag

Sketch Fabric Swatch

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Quality control

Achieving a good quality standard is not just about having a goodfactory – although having good manufacturers is part of thebattle. Much of the discipline and technique involved inachieving high standards stems from the designer in the

rst place. How the requirements are formulated andcommunicated can have a tangible effect on the qualityof your production garments.

Sales orders are won through hard work and are muchtoo important to risk by being laissez-faire aboutquality and timeliness. Retailers frequently cancelorders if they do not meet their quality expectations.How you work with your factories will ultimatelybe the deciding factor in satisfying these qualityrequirements.

The responsibility and initiative for the whole qualityprocess starts with the designer. The garments mustbe able to be manufactured and the product and qualityrequirement must be suitable for the selected factory. It’s nogood expecting beautiful tailored trousers from a dress factory –no matter how good the factory is.

The selection of the factory is a crucial part of the quality process and the rst step is tothink about what you want.

To achieve a good quality standard, you need to:

• Choose the right factory for the product.

• Be clear and concise about your expectations.

• Communicate regularly and constructively.

• Develop a good working relationship.

Applying a standard

• Once production starts, visit the factory after cutting and when the rst garmentshave just gone on the machines. Get the factory to tell you when they are close to

nishing the rst one so that you can go and see what has been achieved.

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• Visit the factory regularly whilst they are producing for you – even if only to have acup of tea with the boss. It is so much easier to achieve what you want if you have agood relationship.

• If you don’t like something the factory is doing, then tell them at the rst possibleopportunity and listen to their response carefully. They may have a really good reasonfor doing it or alternatively they may not even be aware that it is happening. They mayhave ideas about how to overcome a dif culty or alternatively they may not ‘get it’.Nevertheless you need to keep up-to-date with what they are doing so that you canquickly make changes if necessary.

• Use the combined Speci cation Sheet/Quality Control checklist to tick off the makingfeatures that you speci ed earlier at sample stage. If discrepancies are encounteredthen record them in the comments box and get the factory to acknowledge thediscrepancy, ideally by initialling the comment, to signify their awareness of thesituation.

Troubleshooting

• If the factory reports fabric issues, it is vital that they are dealt with promptly. If theyare laying up the fabric and encounter problems (shading, aws, shortages etc.) the

rst thing to do is ascertain whether the fabric is useable or not. It may be that thefactory is anxious to continue cutting – they will not want their cutting table blockedwhilst the issue is resolved – but be careful to satisfy yourself that the problem ismarginal before you let them carry on. There is no better way to see the problemthan to visit yourself. Don’t forget that if the fabric is cut or laid up and then foundto be not useable, the fabric supplier is highly unlikely to replace or compensateyou. It is usually too late to claim for fabric problems if the garment is already made.If the factory is cutting out damages then ensure they keep those pieces safely, asthe representative of the fabric producer will want to see them if you are claiming

compensation.• If the garments are not coming up to your expectations then how do you deal with

it? If, despite your clear instructions, constant communication and frequent visits, theproduction is not going to meet the retailer’s standards. What do you do?

• The rst thing is to get the factory to acknowledge the issue. Unless you can bothagree that the problem exists in the rst place, you will not be able to solve it.

• Ask the factory how to x it.

• Get more time from the customer so that you can give the factory a reasonabletimeframe to work within. This is particularly important if the garments need majorsurgery.

• Get the factory to rectify one sample so that there is a standard to work to.

• Again, visit frequently to ensure consistency.

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Resolving a dispute

In the eventuality that your troubleshooting efforts have failed then you are in thedif cult position of having to resolve a dispute.

You have bought and paid for the fabric and trims. You have incurred expenses producingpatterns and visiting the factory and the order is still in danger of being cancelled because

even if the issue can be recti ed it might be too late for the customer. Obviously you needto avoid getting into this position in the rst place, but now you’re in it what do you do?

Your options are limited.

1. Negotiate with the factory and customer to achieve a mutually bene cialcompromise.

2. Sue the factory for the costs you have incurred and lost gross-pro t.

3. Write off the garments, and the situation, and start again.

It may well be a cliché but, when it comes to garment quality, it is de nitely true that

‘prevention is better than cure’.

The knack of having no, or few, quality issues comes down to the key points outlinedabove:

• Work hard to build a relationship.

• Be clear about letting the factory know what you expect in the way of quality andlogistics.

• Communicate frequently and in person at the factory.

• Be up-front and prompt about voicing any concerns.

• Give the factory feedback.

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Your Name Here Date

Garment Description Style No. Check

Fabric e.g. Red Silk Satin

Seam Type e.g. Open - satin bound

Seam Allowance e.g. 4mm

Zip e.g. 18cm invisible

Fastenings e.g. 4 24l buttons

Stitches per inch e.g. 15

Thread Type e.g. Gutermann 70

Thread Colour

Interlining

Pad

Key Measurement 1

Key Measurement 2

Key Measurement 3

Key Measurement 4

Key Measurement 5

Content Label

Logo LabelSwing Ticket

Hanger

Bag

Other

Other

Comments

Specifcation Sheet and Quality Control Check

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Productionmanagement

Taking orders from retailers, whilst quite anachievement, is only part of the challenge ofrunning a successful designer brand. How adesigner manages the garment production cyclecan be the difference between success and failure.Production management of your hard-wonorders is a vital skill that applies to a fashionclothing business irrespective of thesize of the orders. The same pressures,problems and delays will affect you,whether you are making 50 garmentsor 50,000 garments a season. Theonly differences between these two

scenarios are the numbers. The skillsrequired to manage the processef ciently are exactly the same.

Many designers use a proprietarysoftware system for the managementof their orders and dockets (productionorders to the factory). These softwaretools can be a huge bene t to yourbusiness and, as you grow, they becomemore and more vital. They can be sourcedon the internet under ‘fashion productionsoftware systems’. However these systems do

come at a cost and your business may not beready to bear this administration expense just yet.In the eventuality that you are not ready for a softwaresystem, you will need to create your own modus operandi sothat you, and your staff or helpers, have a clear sequence of actionsto follow.

The procedure for putting your sales orders ‘into work’ (i.e. into production) breaksdown into these sections:

• Collating Sales Orders

• Collating Purchase Orders

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• Sourcing Manufacturers

• Factory Selection

• Production Bookings

• Building a Docket

• Issuing a Docket

• Monitoring Production

• Taking Delivery

• Problem Solving

• Dispute Resolution

Collating Sales Orders

This is the rst stage in the whole manufacturing process. Without creating an overview ofyour production requirements you will be tackling your manufacturing process in a piece-meal fashion which would have disastrous consequences.

The ideal way to achieve this is to create a spreadsheet ‘Production Schedule’ showing thetotal orders against each style – and the delivery details that apply. This schedule will formthe foundation of your whole production management system.

Best Practice

• Use the Production Schedule.

Collating Purchase Orders

Now that you have a total for each style, you need to calculate your requirements forevery fabric, button, zip and label and get them ordered as soon as you can. It is vitalto obtain a clear delivery date from your fabric and component suppliers, as usually thefactory will base the delivery date that they quote on the date that you can give themthe complete set of components that they need to make the order. The factory cannotquote an accurate date unless they have all the fabric and trim information. Many ordersare delayed each season because something is not supplied in time. £10 worth of missinglabels can result in a cancellation costing thousands of pounds.

Best Practice• Get a realistic delivery date from your fabric and trim suppliers.

• Tell your supplier to use your docket or style number as a reference number on thepurchase order.

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Sourcing Manu acturers

Every designer needs the skills and support of a reliable manufacturer. Finding thesefactories can be a challenge, so make sure that you use any friends, contacts orprofessional networks and scour the web to identify the best candidates.

Once you have done your research and compiled a list of manufacturers it is important to

assess their suitability to be part of your network of suppliers. This can only be carried outby visiting their premises and seeing how they work.

When you visit is very important not just to assess the physical conditions and makingprocedures of the factory but to get some idea of how well organised they are. Forexample, are all the trims for the factory’s dockets kept clearly labelled in one place?

Are the working areas clear of clutter and is their paperwork neatly organised?Whilst good organisation is no guarantee of good quality garments, a well organisedmanufacturer will be more likely to have well organised production.

Ascertain, during your visit, how and when the payments are required by the factory. Youare unlikely to get credit terms straight away but if you stick to your part of the bargain,pay promptly and build the relationship, it will almost certainly follow that credit termsbecome available.

Points to consider

• What other designers do they work for – do those designers have the same quality andpricing strategy as you?

• Is the factory willing and able to make your quantities for your dates?

• Are the factories’ Health and Safety, ethical and housekeeping working practicescompatible with your business?

• Can they achieve the quality that your customers expect within the price that you canafford to pay?

• Is it feasible to have your orders in this location? Can you get there easily and cheaply?Will you be able to ‘pop down there’ in the event of a problem?

• Is the owner/manager the sort of person you can create a business relationship with?

• Make sure you discuss and understand the factory’s payment terms.

• Will the factory sign the Code of Practice?

Best Practice

• Use the Factory Assessment Form to rate the factory as a viable supplier.

Factory Selection

Now that you have compiled a list of potential manufacturers, you have to match thefactory to the orders. If your collection is multi-category and includes, for example,tailoring, jersey and soft dresses, then your choice of manufacturer will be determined by

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their technical capabilities. If, when you visited them, they were making lined tweed skirtsare you going to be successful giving them a docket of silk dresses? Despite what thefactory tells you, the decision to place the work with them can only be made by you basedon your own observations. The safest way to select is on the basis of the sample that theymake for you of the style in question – although cost is an obvious factor here.

Points to consider

• Can the factory achieve the price you need?

• Can they meet the delivery date?

• Are they technically competent in that product category?

Best Practice

• Get a sample made by your chosen manufacturer and agree the price.

• Use the Code of Practice to outline both parties’ responsibilities.

Production Bookings

So at this stage you have your sales orders, your fabric and trim requirements and youknow who is going to make the docket.

Good practice is now to make a production booking with your factory so that they can‘block out’ some production space for your orders. This production booking will bein uenced by the delivery date of your fabric and trims. If your component dates aredelayed then the production booking dates should also be extended. Remember thatproduction cannot commence until all fabrics and trims are in place.

Best Practice• Constantly review purchase orders and update production bookings if suppliers are late

with deliveries.

• Keep the factory informed of delays so that they can ‘juggle’ their bookings and run atoptimum ef ciency.

• Use the Production Schedule.

Building a Docket

In an ideal situation it is preferable to collect all fabric and components in one place sothat once everything has been delivered into your studio you can pass it to the factorywith the docket (their purchase order). In this way you are giving the factory everythingthey need to make the order at the same time. This is undoubtedly the best way to dothis as it dramatically increases the chances of the factory being able to keep to agreeddelivery dates.

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However, it is not always practical to avoid sending deliveries of fabric and trims directfrom the supplier to the factory. If this direct delivery occurs it is very important that thefactory understands their responsibility in recording the direct delivery and notifying youthat it has come into them.

Best Practice

• Build your docket fabrics and trims so that you can pass them over to the factory all atonce.

• Get delivery notes from the factory of goods that were delivered direct to them onyour behalf.

• Tell the factory when you have sent something so that they can look out for it.

• Remember to record the different components of the garment to ensure that you areaware of each fabric and trim, keep the information for this garment along with theinformation for the other garments in the collection.

Issuing a Docket The docket is the order to your factory that tells them exactly:

• What style to make.

• How many garments and the size breakdown.

• What components they need to use.

• What the delivery date is.

• The price that was agreed when the style was sampled.

It is very important that the details are correct. It is too late to change the size breakdownwhen the cloth has been cut.

Best Practice

• Make sure the factory owner/manager is aware that they have received the docket.

• Get them to re-con rm that the delivery date is still realistic, as the productionbooking may have been made several weeks earlier.

• Issue a docket that clearly references the Production Booking that you put on theProduction Schedule earlier.

• Ensure that changes to orders and dockets are communicated promptly to the factory

and ascertain if the changes affect deliveries in any way.

Monitoring Production

Most professional production managers will use a variety of methods to maintain contact.

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Progress can be monitored by phone and email updates but there is absolutely nosubstitute for visiting the factory on a regular basis. By your regular visits you will becomeprominent in the eyes of the factory and stand a better chance of creating a good workingrelationship.

Best Practice

• Visit the factory at least once a week whilst they are in production.

• Use the Quality Control and Checklist.

• Use the Production Schedule to monitor progress of your orders.

Taking Delivery

Once the garments are ready it is your responsibility to get them from the factory to yourchosen location. The garments should be thoroughly checked for quality and quantitybefore they leave the factory. It is too late to rectify any problems once they leave the

makers’ premises.Be very careful about sending interns or part-time staff to collect the nished garments.The factory will have spent a long time pressing and nishing the order and carelesshandling will negate much of their work.

Best Practice

• Check the garments for quality and count them.

• Make sure the garments are bagged and are not going to fall off the hanger.

• Where possible, use a professional hanging garment delivery service to bring them toyou.

• Take delivery of the orders on the date you agreed on the docket.

• Pay the factory on the agreed date as per the Code of Practice.

Problem Solving

Inevitably, despite everyone’s best endeavours, things go awry when using factories. Themost common problems in dealing with manufacturers are:

• Delays to your orders.

• Quality issues.

• Missing/lost components.

• Fabric problems disrupting the work-plan.

How the problem is handled with the factory will have a signi cant effect, not only onthe order, but also on your relationship with the management and staff of the factory as

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well as on your customer. It is important that production problems have as little impact aspossible on your customers and their perception of you as a reliable fashion supplier.

Best Practice

• If the problem has been caused by the factory get them to acknowledge the fact.

• If the problem is quality related use the Quality Control section.

• Where possible, give the factory time to rectify problems.

• Keep the customer informed immediately of any delays or alterations to their orders.

• Use your relationship with the factory to negotiate a mutually acceptable solution.

• Have more than one factory that can make each product type.

• If the cause of the problem is unclear, try and go halves with the factory on any coststhat need to be incurred.

Dispute ResolutionGetting into a dispute with a factory that is producing your orders should be avoided atall costs. Many thousands of pounds of your money will be tied up in the orders you haveentrusted to one manufacturer. Not only that, but your reputation in the industry will be

judged on how ef ciently you produce and deliver. If you enter into a dispute that cannotbe easily resolved you run the risk of incurring cancellations and other nancial penalties,as well as risking damage to your reputation.

Whilst the courts are there to deal with commercial disputes, this is really the very lastcourse of action that you should consider and is the least favourable option.

Best Practice• Prevent the dispute occurring by negotiating a solution.

• Build a relationship to minimise the chance of a dispute happening.

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Factory assessmentchecklist

The Alliance has put together a Factoryassessment checklist. This check list should beused when visiting a new production unit toensure that they meet your requirements in termsof their production ability, physical conditionsand working practices.

Best Practice

• Fill out the checklist for each production unitbefore entering into an agreement with them.It will allow you to compare one factory toanother and make an informed decision on

which one is best to produce your garments.

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Your Name Here Date

Factory Location

Production Capacity Lead Time

Speciality: Rating out of 10

Cleanliness – Of ce

Cutting

Machining

Toilets

Staff Canteen/Eating Area

Needle Policy and Records

General level of clutter

Physical Security (alarms etc.)

Fire Extinguishers

Fire Exits (unlocked etc.)

Health and Safety (protective clothing etc.)

Age of Equipment

Special Equipment

Pressing Capability

Technical Ability

Pattern Knowledge (alterations etc.)

Ease of Access (loading/unloading)

Payment Terms

Pricing

Working Relationship

Ability to Communicate

Willingness to sign Code of Practice

Other

OtherTotal Rating

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Using theproduction schedule

Despite the huge variety of garment types, when it comes toproduction management there are only three types of order:

• Orders not in work (those where the docket has not been raised).

• Orders in work (those where the docket has been raised andissued).

• Completed orders.

The Production schedule is split into three parts:

1. Orders not in Work

This section is for those sales orders for which you have not yet beenable to issue a docket. Make a production booking with your factory,get them to agree the date, and give the booking a sequential referencenumber. Once the factory agrees the booking put it on the schedule.

2. Orders in Work

This section is for those sales orders where you have all the fabric, trims, labelsand so on, and you have been able to raise a docket. You should have previouslygiven these orders a production booking, so when the docket is ready simply cutand paste the order line from the top section and put it into the bottom ‘In Work’section – don’t forget to ll in the docket number. Once the docket is complete you can

remove it from the schedule or create a section for completed orders.In this way you have one spreadsheet that encapsulates your whole order situation At aglance you can see what is still to be put into production and what is still in process. Thiswill enable you to plan and discuss your production needs when you are in the factories.

3. Completed Orders

When the order has been delivered by, or collected from the factory, then you mustinvoice it to your customer (once the quality has been checked, of course).

Take the relevant docket line from the ‘In Work’ section of the spreadsheet and cut andpaste it into the ‘Completed Orders’ section. It will need editing because you do not need

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to show the production booking of this completed order. What you can show though,is the customer invoice number that you create when you send it to your customer. It isa great way of knowing that all your deliveries get invoiced and that no stock is sittingaround your business costing you money.

Best Practice

• Make a production booking for every style you intend to give a factory.

• Don’t forget to keep the details updated as the situation changes.

• Move the orders from the top section to the bottom ‘Into Work’ section as theybecome dockets.

• Keep the fabric and trim delivery dates under constant monitoring and update theschedule as they get delivered.

• Notify the factory of changes as they happen.

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Case study

“I have my sample collection I’ve sold rom and I now have orders rom 20 stores, some o them high profle – but I just can’t seem to fnd anywhere who can make these garmentsto the standard I need them to be whowill not charge me a crazy price.”Designer

For any designer, a key to success is having access to areliable and professional manufacturer or production unit.But many young or new designers are struggling to ndmanufacturers who have the skills and facilities to maketheir product. The high-end designer fashion industry(which includes both designers and manufacturers), issmall and specialist. As a result, information tends to beshared in a very informal way, often by word-of-mouth.In fact, some designers are reluctant to share their ‘good’manufacturers for fear that it might affect their own production.This means that it can be hard to get the right names and contacts formanufacturers unless you are already established. Designers are often forced to draw upontheir own informal networks as there is no reliable source of information.

Part of the problem is that manufacturers don’t generally devote time to marketingthemselves, due to lack of time, low levels of IT skills and a lack of available nance.Together, these factors make it dif cult for emerging designers to nd manufacturers,except through referrals. Many manufacturers – particularly those who are older and havebeen in business for a long time – may lack even basic IT skills, and therefore do not haveany online presence. This is problematic for young designers used to using the internet forinformation who are struggling to nd a production unit.

Even when details of manufacturers are available, designers often nd it hard to tell whatstandard of garments the manufacturer can produce; for example, can they deal with aspeci c fabric type, or do they have the skills or machinery to give a particular nish?Unfortunately in most cases the manufacturer’s skill and pro ciency is only really made

Finding a productionunit/manu acturer

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clear once production has started. This can end in high costs for both the designer and themanufacturer if there are production problems and the garments need to be re-made. Inaddition there are sometimes discrepancies between designers and manufacturers in termsof what each considers a ‘luxury garment’, depending on the knowledge and experienceof each party.

It’s not just emerging designers that struggle with sourcing a manufacturer; manyestablished designers also nd it dif cult to source a production unit in the UK thatcan meet an increase in demand or grow with them. For designers who are moreestablished, producing larger order sizes can be a problem, as many of the UK’s high-endmanufacturers are small operations. Designers don’t always know where to go to nd afactory that can produce larger orders. Often they will end up continuing to get samplingdone in the UK, but will send production overseas.

Currently there is no single directory, either print or web-based, that has a comprehensivelist of high-end manufacturers. Likewise, for those manufacturers that are actively seekingnew designers, there is no obvious place to go to nd them. The situation is made worseby the reluctance of designers to share contacts with each other. In reality the sharing ofcontacts is mutually bene cial to designers and manufacturers alike. If a manufacturerdoesn’t have suf cient clients, they might be forced to close, which ultimately doesn’thelp any of the designers.

Top Solutions:

• Database of manufacturers, including details of specialist skills.

• IT training for manufacturers to enable them to use database, search engines etc.Create their own webpages.

• Cross-sector forums/events to bring designers and manufacturers together.

• Cross-Industry Factory Assessment Criteria.

• Cross-Industry Quality Requirement Criteria.

Relevant sections from the Fashion Toolkit:

• Code of Practice.

• Factory Assessment Checklist.

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Case study

“I have designers sending me their ‘production’orders which can be as little as 10-12 pieces across fve sizes – I have to cut all these individually and the machinists only ever make a couple each so they never get used tothe style. They take just as long to make asthe sample but the designers still expect me to

give them a lower price or production and get upset when I tell them I can’t.”Manufacturer

Manufacturers and designers have very different ideasabout ideal order sizes. Most manufacturers would like to bemaking orders of 50+ pieces, but in reality designers often ordermuch smaller numbers (often fewer than 20 pieces). It’s therefore useful for bothmanufacturers and designers to understand why order sizes are such an issue foreach party.

Generally, manufacturers calculate garment costings on the time spent producing thesample. Production costings are based on this calculation, adjusted on a sliding scaleaccording to volumes (higher volumes, lower cost per garment). But many smaller designerbusinesses only ever have small orders, so never qualify for the lower production rates,and exclusivity of the product is part of the appeal of high-end clothing. Manufacturersaren’t always aware of the market position of young designers: they are placing smallorders because they are just starting out, not because they are giving large orders tooverseas manufacturers.

Conversely, it’s helpful for designers to look carefully at their order numbers, and to getthese to work with the costing system used by manufacturers. For instance, it could beworth making a few extra garments if that volume would mean they qualify for lowerproduction costs. They also need to be aware that many manufacturers are already forcedto produce a wide range of docket sizes and juggle small orders with larger ones just tokeep the work ow constant through the unit.

Production volumesand costings

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An Alliance o fve key partners working together to support the UK’s high-end designer manu acturing sector

Designers with more industry experience are often able to give a guide price. In someinstances, manufacturers will work to that price, adapting the make of the garmentaccordingly. Established designers are also more likely to repeat styles (for instance, in anew colourway), which means that both designer and manufacturer know what the costsare likely to be for a given style.

Top Solutions:

• Better understanding between designers and manufacturers of their business size,commercial pressures etc.

• Clear price list presented to designer at start of sampling process which outlinesproduction costs on sliding scale.

• Better analysis by designers of styles in their range plans so that they can capitalise onsales on certain styles to achieve higher order numbers.

• Reduction in sizing spread.

• Designers could hold ‘friends and family’ sales (often known as Private Order events),at reasonable rates, of their collections to boost order numbers.

Additional information can be found in:

• Resource Guide.

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Case study

“We o ten fnd that designers send us incomplete dockets or a style. They will send us abric and lining, but no zips – and say that the zips will come later, or all the components and the wrong using. Thenthey expect that because the abric has arrived

we should start the docket – but o ten we can’t and this jeopardises the agreed production delivery date.”Manufacturer

Trims can cause problems for both designers and manufacturersif designers plan their production badly and misjudge the leadtimes for delivery of fabric and all other components (buttons,zips, labels etc.) When placing an order, time also needs to befactored in for additional processes such as sending patterns

out for grading. Too often, designers are only thinkingabout the nal delivery date, not the whole critical path forproduction.

Incomplete or poorly timed delivery of components to factoriescan cause a lot of production problems. Designers sometimesassume that because factories have the fabric and patterns, theywill be able to start work, but factories will not usually start workuntil all components have been delivered. Trims often have just as long orderlead times as fabrics, which many designers who are just starting out don’t seem to beaware of. Sometimes, what seems like the smallest part of the garment – for example thesizing or composition label – can delay the nishing of a garment by weeks.

Designers also need to be sure that they are using the most suitable trims or components

Trims – choice,procurement andtimely delivery

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An Alliance o fve key partners working together to support the UK’s high-end designer manu acturing sector

for their garments e.g. using very heavy zips on a light chiffon garment, or ordering thewrong length of zips and expecting the manufacturer to alter them (which takes time andcosts money). Even fusings, interlinings and other internal, structural components cancause production hold-ups, although some manufacturers keep stocks of fusings in orderto avoid further delays. Again, care needs to be taken ordering the correct componentsprior to production starting.

Many designers struggle to nd good, reliable trimming suppliers within the UK,particularly if they are only ordering small volumes. Some designers even continue to buytrims from retail outlets (e.g. John Lewis) rather than wholesalers, which means they arebuying more expensive and often less technically advanced trim. Likewise, manufacturersare increasingly nding it harder to source trims in the UK, and many end up orderingthem from Italy or France.

Top Solutions:

• Clear packing lists detailing all components relating to style.

• Effective communication between designers and manufacturers regarding timing ofthe delivery of components.

• Agreement of when the actual make of the docket will start.

• Better education around suitability of trimmings – involving close discussion with themanufacturer on the best/most product applicable trim.

• Database with details of trimmings/components stockists.

• Familiarise themselves with Seasonal Gant Charts/Fashion Critical Paths.

Relevant sections from the Fashion Toolkit:

• Production Schedule.

• Critical Path Management.

• Production Management.

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Case study

“Buyers demand 30-day payment terms, my abric mills are pro- orma payment and the manu acturing units are cash on delivery – sometimes I can be months in the red atthe bank – I just don’t know how many

seasons I have to sustain this or.”Designer

Many designers nd it dif cult to obtain any sort ofcredit agreements with manufacturers, and this puts amassive strain on the nancial part of their businesses.Cash-on-delivery is the normal arrangement with UKmanufacturers, compared with Italy, for example, where it

is usually 30 days, even if it is a new client.When credit is given in the UK, this is usually limited to 7-10days and is almost entirely dependent upon an establishedrelationship between the designer and the manufacturer,which usually takes several seasons to develop. But even this isno guarantee of credit – some larger design companies have ongoingrelationships with manufacturers, and still don’t get credit. The current unstableeconomic climate has made many manufacturers very wary of giving credit to anycompanies. Manufacturers also feel that some young designers mismanage their nances– spending large sums of money on shows, but not paying for goods on time.

For many designers, payment of production costs is way down their list of priorities, so

they end up using credit cards, or expensive nance agreements, to pay for production atthe last minute. Better planning could help prevent this.

It’s also helpful for designers to understand why UK manufacturers can be reluctantto give credit. They usually pay their staff on a weekly basis, so need constant, steadypayments rather than large sums at the end of a season. Manufacturers themselvesoften nd it very hard to get credit from banks, and most have had the experience ofgetting ‘burned’ by designers who have collected goods and never paid for them as theircompanies have liquidated. For small manufacturing units, perhaps with fewer than ten

Finance

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machinists, a late payment can mean the difference between paying staff and having tolet staff go. Obviously, this impacts negatively on the whole sector as it means there areeven fewer places for designers to get their garments made.

Top Solutions:

• Designers need to plan large, regular seasonal payments into their cash ows in orderto be prepared for them.

• Designers need to stick to agreed payment terms and if not possible thencommunicate this as soon as possible to the manufacturer.

• Both Designers and Manufacturers need access to solid nancial advice.

Relevant sections from the Fashion Toolkit:

• Code of Practice.

• Factory Assessment Checklist.

• Production Management.

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Case study

“I have placed my production order, sent all my abric and trims to the actory and haven’t heard anything romthe manu acturer or the last week

although I have been trying tocall them – it’s like radio silence

and I’m really worried. This is mywhole season at stake and I eellike there is nothing I can do.”Designer

Contracts are not widely used within the sector. Although manydesigners and manufacturers don’t feel that they are necessary, a writtencontract will become invaluable if a dispute does arise. For instance, if issuessuch as ownership of goods and terms of payment can be set out before the workstarts, there is less likely to be confusion and ill-feeling if a problem subsequently arises.Terms and Conditions can also agree delivery dates and agree discounts for late delivery,which helps ensure late delivery is less of a problem.

Late delivery is a common problem, and this can damage a designer’s relationship withtheir customers. Although there are sometimes clear reasons for a delay (e.g. changesto the pattern, late delivery of fabric or components), designers sometimes are not evensure why the delay has occurred. Many small designer businesses have had their order‘bumped’ when a manufacturer gives priority to a designer with an order of a higher

nancial value.

If both parties have already agreed the Terms and Conditions of their working arrangementthen dispute resolution can be much more straightforward. However, it can sometimes bedif cult for smaller designers to get manufacturers to sign written agreements.

Companies that do make use of contracts say that they have rarely had reason toactually refer to them in a dispute, but it helps to keep the relationship professionaland businesslike. If contracts are to be effective, there needs to be mutual agreement

Terms andconditions

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of Terms and Conditions between designers and manufacturers. There should not bedocumentation that one party ‘forces’ upon the other.

Top Solutions:

• Increased use of contracts throughout the sector.

• Mutually agreed Terms and Conditions.

Relevant sections from the Fashion Toolkit:• Code of Practice.

• Production Management.

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Case study

“A designer came to me six weeks ago and booked space or 200 units or the end o this month, so I hired another machinist to help – then the docket arrivedtwo weeks late, and or 100pcsless, so I ended up over-sta ed and

still having to pay wages.”Manufacturer

Production space needs to be carefullyplanned and booked by designers as the latecancellation of a production slot can causemajor problems for manufacturers. If thespace hasn’t been booked, it is impossible formanufacturers to plan their work ow and ensurethat they have the correct number of staff availableat the right time. In some instances, factories havehad to lay off staff because production space has beencancelled very late on, making it impossible for the slot to be usedby another designer.

Often these problems are caused by buyers who place their orders very late, which makesit impossible for designers to con rm their orders with factories. But sometimes it is due todesigners not planning effectively.

If any changes are made to docket sizes, they need to be stated clearly and con rmedin writing (for instance, in an email). Similarly, if the docket is increased, any changes tosize ratios need to be put into writing and designers need to ensure that additional fabricand components can be delivered in time for the factory to complete the order. Both thedesigner and the manufacturer need to agree new practicable delivery dates to take intoaccount larger amount of garments to produce.

Manufacturers can be reluctant to take production bookings if they have been let down,

Reservingproduction space

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but this makes it dif cult for larger designers to plan effectively and be assured of make-time for larger dockets. So it is in the interests of both parties to stay professional aboutbooking space and for all designers to keep their factories informed of any changes as itaffects the industry as a whole.

Top Solutions:

• Better communication between designer and manufacturer on order timelines.

• Buyers to understand importance of placing orders early enough to allow forproduction.

• Booking/production online reservation system.

Relevant sections from the Fashion Toolkit:

• Code of Practice.

• Production Schedule.

• Critical Path Management.

• Production Management.

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Case study

“ … we o ten get patterns with pieces missing, patterns that don’t correspond tothe toiles, samples with labels all over themthat we then have to amend on the patternbe ore we can start the production docket…”Manufacturer

Both designers and manufacturers report that problemsconcerning patterns frequently disrupt the production process.

One of the most common problems is that patterns sent donot correspond with samples or toiles. This tends to be thecase when adjustments have been made to the sample butnot carried through to the pattern. Confusion is most likely

to arise when there are lots of notes given explaining theamendments, without the sample re ecting those changes.Pattern discrepancies often arise when too many differentpeople work on them (freelance pattern cutters, interns etc.)with no one single person responsible for checking the patternsbefore they are sent to the factory. Many manufacturers feel thatthey are simply left to resolve these pattern issues – although mostpoint out that they will charge designers for this additional work. In most instancesdesigners are happy for trusted manufacturers to make these amendments. However,where there is no established working relationship, this can be more problematic.

Other common issues with patterns include openings that are not large enough andincorrect patterns being sent for grading, resulting in all grades being incorrect. Problemslike this cost time and money to rectify but are easy to avoid.

Top Solutions:

• Rigorous checking of patterns prior to them being graded and sent to manufacturers.

• Designer/production manager to look at pattern together with manufacturer prior tothe start of production.

• Inclusion of measurement specs for production.

Relevant sections from the Fashion Toolkit:

• Code of Practice • Garment Speci cation • Production Schedule

Patterns

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Case study

“I placed my abric order with a millover 60 days ago and got a confrmed

delivery date rom them and it’s now seven days a ter the delivery date and the mill is telling me that it’s going to be another seven days… my manu acturer has already given my production space to another designer as they can’t hold space or me any longer.”Designer

Many high-end designers source their fabrics from specialistmills in Italy, but late deliveries from Italy are a very commonexperience. This has a knock-on effect on the whole productionprocess and in many cases there is pressure from the manufacturerwhen it is not technically the designer’s fault. Designers need to be awareof working practices in Italy; when mills are closed, when there are public holidays,and so on, as this can have an impact on when orders can be shipped. Mills will tend toprioritise larger orders from international companies, so small orders can then be affected.Knitwear producers have similar experiences as designers often source their yarn fromItaly.

Digitally printed fabrics bring with them particular problems. Designers are nding that

the rst batch is often a write-off as the colours are incorrect. White marks on the fabricand off-register printing are also problems, rendering a fabric unusable. The fabric thenhas to be reordered, which costs both manufacturer and designer money and time.

Fabric choice needs careful consideration as a fabric that is very delicate or requires a lotof manipulation (i.e. block fusing or sewing with tissue) can make production slow or raiseunexpected problems. Manufacturers often misjudge the time it takes to work with moredelicate types of fabric such as silk or ne jersey when they are not used to working withit. Designers need to be wary of placing fabrics with units who have little experience orthe suitable machinery for producing particular fabrics, but this can be avoided by visitingthe factory before placing the order.

Fabric and yarn

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Fabrics often arrive direct to manufacturing units where the designer then relies on themanufacturer to check the fabric quality and colour. This is can be a problem as designersand manufacturers may have very different tolerances for fabric quality. Designerssometimes return to nd that the whole docket has been made in a fabric that is faulty orthe incorrect colour. It is useful for designers to provide swatches of what the productionfabric should look like, as well as con rmation of the colour that has been approved.It is also imperative that the designer or production manager visits the unit over this

time to approve production fabrics, unless they strongly trust the judgement of theirmanufacturer.

Production mistakes can also occur when designers fail to take into consideration thebehaviour of a fabric when pressed and steamed in the nal nishing process. Fewmanufacturers are given measurement speci cations for production, meaning that if therewas fabric shrinkage, there is no way of checking the correct size of garments. A simplespec sheet could help prevent this.

Top Solutions:

• Better planning of lead times to take fabric delivery into consideration.

• Agreed fabric Quality Control procedures between designer and manufacturer.

Relevant sections from the Fashion Toolkit:

• Production Management.

• Quality Control.

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Case study

“We very rarely get given a pre-production sample that doesn’t involve me spending acouple o hours and several phonecalls tothe designer trying to make sure we have

accounted or all the changes be ore we start making the docket.”Manufacturer

Seal samples can be expensive and time-consuming for designersto produce. Designers may need to pass samples on to PRcompanies for selling or press. In some cases they are sent outwhile still in development but with lots of notes to explain thechanges to be made. Larger companies are more likely to have

‘duplicate’ samples (for instance, in an alternative colour-way),as they have the budget, but for small companies, producingduplicates is costly and labour-intensive.

However, most manufacturers will stress the importance of havingan approved sample before production begins. Many will insist onmaking a pre-production sample in the correct production fabricif they did not make the original sample, as this allows them toassess exactly how the garment needs to be made.

Ideally, any amendments made to samples that are going tobe used as production samples need to be minimal, and theamendments should be clear both in the spec sheet and in the pattern.

Top Solutions:

• Designers should try to make PPS samples and cost this into their collection.

• If that is not possible, designers should make any notes clear and concise and shouldvisit the manufacturer to talk through the sample.

Relevant sections from the Fashion Toolkit:

• Production Management.

• Quality Control.

Production samples

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Case study

“I know that we should be doingQuality Control checks on all the garments that come out o the unitbut I don’t really know what I shouldbe looking or… is there anywhere

I can get a checklist that I can usetogether with my manu acturing unitto make sure we are both working tothe same standard?”Designer

Quality Control (QC) is incredibly important, but it needsto be applied rigorously throughout the industry by bothdesigners and manufacturers in order for the standard ofproducts to be maintained.

Buyers are not happy about garments being delivered to stores thatare faulty, and the reputation of a designer will be damaged if this happens.To make matters worse, at this point it will usually be too late to return the goods tothe manufacturer, so the designer is left with faulty stock and a stockist who is short ofgarments.

However, if QC checks have been carried out throughout the production process, suchproblems are usually avoidable. Good QC practice is when a designer or their productionmanager visits the factory frequently during production. Although some designers may beconcerned that this is time-consuming, it means that any QC issues arising can be recti edduring the production process rather than at the end when it may be more dif cult to resolve.

The question of where garments are QC-ed once they have been completed can alsobecome important. Some manufacturers will take the approach that once the garmentshave left their premises, they are no longer their ‘problem’ and may be unwilling to dofurther work. Clari cation of this may be necessary for dispute resolution and so it isuseful for this to be discussed before production begins.

Quality Controlprocedures

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Top Solutions:

• Creation and application of a standard.

• Clear discussion of responsibility for faulty goods if no Terms and Conditions have beensigned.

Relevant sections from the Fashion Toolkit:

• Garment Speci cation.• Production Management.

• Quality Control.