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Welcome to the Welcome to the Quality and Productivity Quality and Productivity
SeminarSeminarHost ; Asif HussainAsif HussainSenior Technical Manager NS Hong Kong
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1982
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04/09/23 NSL Quality Management 3
Customer Mission StatementCustomer Mission Statement
To Deliver Beautifully Designed, excellent quality Clothing and
Home ware quickly, reliably and at Market Leading Prices.
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As the No.1 Supplier it is our responsibility
“To fulfill and exceed the expectations of our
Customers”
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Next Quality Expectations
This presentation is to ensure suppliers are fully aware that we ship quality products on time to meet or exceed our Customers expectations and within specified cost
This presentation is to ensure suppliers are fully aware that we ship quality products on time to
meet or exceed our Customers expectations and within specified cost
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Over 500 Over 500 ShopsShopsOver 150 Overseas StoresOver 150 Overseas Stores
More than US$2 m Directory More than US$2 m Directory Customers Customers
www.next.co.uk
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+20% GrowthOver Last Two Years
Strong Potential
For Continued Expansion
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Customer Profile Customer Profile • 25-55 Years25-55 Years
• Single / Single / Family Family • Aspire to Designed Aspire to Designed ProductProduct
• Modern Modern ThinkingThinking
• StylishStylish
• Value & Quality ConsciousValue & Quality Conscious
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US$780 million per annum
NS Global Sales NS Global Sales TurnoverTurnover
Opportunity!
NS HKG Sales NS HKG Sales TurnoverTurnoverUS$280 million per annum
Largest Sourcing Office
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Far East Region
ChinaChina
Kazakhstan
Nepal
India
Pakistan
AfghanistanChina
Thailand
Far East RegionFar East RegionFar East RegionFar East Region
Sri Lanka
Bangladesh
Bhutan
Burma Laos
Vietnam
Cambodia
Taiwan
Korea
Japan
Russia
Buying OfficeBuying Office
VM OfficeVM Office
Sample RoomSample Room
WarehouseWarehouse
ProductionProduction
Quality HubQuality Hub
LaboratoryLaboratory
Shanghai
Donguaan
Fuyong
Hong Kong
Hong Kong ShanghaiDonguaan
Shenzhen
Design StudioDesign Studio
Bangkok
NSL Head OfficeNSL Head Office
Regional HQRegional HQ
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The Role of NS and Our The Role of NS and Our SuppliersSuppliers
• Deliver Great Product • Deliver Great Value
• Sustain Margins• Deliver Great Service
• Deliver Best Lead-time
We have to win ALL of our We have to win ALL of our business, there are no free business, there are no free
rides!rides!
• Deliver Great Quality
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Code Of PracticeCode Of Practice
10. Effective management systems10. Effective management systems
Ten KeyPrinciples
1. No child labour1. No child labour
2. No forced labour2. No forced labour
3. Freedom of association3. Freedom of association
4. Healthy & safe working conditions4. Healthy & safe working conditions
5. Reasonable wages and benefits5. Reasonable wages and benefits
6. Reasonable working hours6. Reasonable working hours
7. Equal opportunities7. Equal opportunities
8. Employment security8. Employment security
9. Respectful treatment of employees9. Respectful treatment of employees
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How will our business grow?
• Great product offer • Quick lead time
• Good working partnerships
• Know strength & weakness
• Be customer focused
• Evaluate our competition
• Be prepared to improve
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Biggest Single Challenge Today
Price!Price!(Not Sales)(Not Sales)
Give us the right price and we’ll get you the sale!Give us the right price and we’ll get you the sale!
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UK Warehouse Inspections
All Next Suppliers are Categorised. The Category is based on Quality of deliveries
The Categories are AA , BB or DDAA = < less than 0.5% STS fail.BB = < less than 1.0% STS fail.DD = > more than 1.0% fail.
All NS SUPPLIERS should be AA Grade
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UK Warehouse Inspections
NEXT WAREHOUSE VIDEO
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04/09/23 NSL Quality Management 19
•POOR QUALITY RETURNS•LATE DELIVERIES •AIR FREIGHT CHARGES,•CRUSHED CARTONS, •STS CLAIMS (REWORKS/REJECTS)
COST OF FAILURE USD 1,943,500
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2020
All Depts. - Close Internal Relationship
MerchandiseDept.
HR &Admin
IT
• Provide system support (NPS, NSS, ILS etc)
• Maintain computer system performance
Accounts
Shipping
• Arrange product delivery in a smooth operation
• Maintain proper sample handling
• Control Quality to meet standard
• Provide Technical Advice and support
• Provide fabric test service
(Base Test, Bulk Fabric Test, Garment Test)
Technical
• Provide in fabric sourcing, evaluation of fabric mills & fabric technology
Code of Practice
• Code of Practice compliance
Product Dev. & Design
VM Centre in Fuyong
Virtual manufacturing Centre in Shenzhen
Supports the Product Development need of HK and shanghai
Manages and controls bulk garment production
Look at new fabric possibilities and new fashion trends
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Black SealBlack SealGrade Sample Grade Sample
Black SealBlack SealGrade Sample Grade Sample
HandoverHandoverHandoverHandover
Development SampleDevelopment SampleBuying SampleBuying Sample
Development SampleDevelopment SampleBuying SampleBuying Sample
Design PackDesign PackDesign PackDesign Pack
Garment PP Garment PP Garment PP Garment PP PP-SamplePP-Sample
(Production)(Production) PP-SamplePP-Sample
(Production)(Production)
Store AuditsStore Audits Store AuditsStore Audits
White SealWhite SealFit Sample Fit Sample White SealWhite SealFit Sample Fit Sample
In-line/In-line/End-of-lineEnd-of-lineInspectionInspection
In-line/In-line/End-of-lineEnd-of-lineInspectionInspection
Gold Seal Gold Seal Gold Seal Gold Seal FinalFinalInspectionInspection
FinalFinalInspectionInspection WarehouseWarehouse WarehouseWarehouse
Fabric PP Fabric PP Fabric PP Fabric PP
REWORKREWORK REWORKREWORK
REJECTSREJECTS REJECTSREJECTS
MFRN’sMFRN’s MFRN’sMFRN’s
Product Cycle - Design Pack to Consumer
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PREVENTATIVE PROACTIVE
QUALITY ASSURANCE
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TEAMWORK AND GOOD COMMUNICATION
TOGETHER WE CAN ACHIEVE ANYTHING
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Fabric/Trims
Sewing
Cutting /Fusing /Bundling
Additional Processes
Finishing/ Pressing /Packing
Metal Detection Quality
Planning /
Pre Production
Simply-Walk the Process
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IMPROVING IMPROVING PRODUCTIVITYPRODUCTIVITY
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04/09/23 NSL Quality Management 26
The objective of this meeting is to provide simplified guidelines to
all QA and Factory Staff to ensure a systematic and clear
path is followed from the introduction of a new style
through to the final shipment.
The objective of this meeting is to provide simplified guidelines to all QA and Factory
Staff to ensure a systematic and clear path is followed from the introduction of a new style
through to the final shipment.
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Next RAG Guidelines/Best Practices
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Reduce Defects & Unnecessary WastageExcess use of Raw material inputsPreventable defectsCosts related to re processing defective piecesUnnecessary product characteristics NOT required by customer
Reduce “Time”Reduce “Manufacturing Lead Time”“Manufacturing Lead Time”Reduce “Production Cycle Time”“Production Cycle Time”By Reducing “Waiting Time”“Waiting Time” between processing stagesAs well as “Process preparation Time”“Process preparation Time” & “Product conversion “Product conversion Time”(Time”(VAS etc)
Inventory LevelsMinimize Inventory Levels at ALL stages of productionEsp. WIP between production stagesControlled inventoriesControlled inventories mean controlled Costs /capitalcontrolled Costs /capital
Improving Productivity
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Efficient Utilization of Equipment & SpaceBy Eliminating “Bottle necks”“Bottle necks”Maximizing Rate of ProductionRate of Production using existing machineryMinimize “Machine Down time”Machine Down time” (Repair/Maintenance etc)
FlexibilityProduce a more Flexible Range of productsFlexible Range of products with :
Minimum Change-over CostsMinimum Change-over Costs
Minimum Changeover TimeMinimum Changeover Time
Labour ProductivityReduce Idle time of workersWorkers execute maximum & effective effort
NOT doing unnecessary TasksTasksNOT doing unnecessary MotionsMotions
Improving Productivity
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Increased OutputWith Reduced Lead TimesIncreased Labour ProductivityElimination of “Bottlenecks”Minimal “Machine Downtime”
LEAN LEAN STAGE 1STAGE 1
LEAN LEAN STAGE 3STAGE 3
LEAN LEAN STAGE 3STAGE 3
LEAN LEAN STAGE 4STAGE 4
LEAN LEAN STAGE 2STAGE 2
TARGETTARGET
Improving Productivity
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SHORTER LEAD TIME
LOWER RISK
LESS COST
MORE PROFIT
Benefits
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90 % of Teachings are the same90 % of Teachings are the same
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A motivating influence; stimulus;encouragementAn additional “reward” made to employees as a means of increasing production and maintain standardsTime Frame set in which target is to be completed
Can be used in CuttingSewing ReworkIroningPacking Safety Audits / MD
Bonus IncentivesBonus Incentives
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All Improvement Systems emphasize “Ways of Thinking”- Not just New Practices
Every Employee is Hired to Use their “MIND” – and not just their Body
The Biggest Change of AllThe Biggest Change of All
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Ultimate Objective of Continuous Improvement is Human Development
The real power is when everyone is applying “Lean Thinking” to their work everyday
And when everyone is Thinking of New Ideas everyday
The Biggest Change of AllThe Biggest Change of All
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NO BACK STABBING NO SHOUTING NO HIDING
NO ARGUEMENTS BE APPROACHABLE TEAMTEAM WORK WORK
The 2The 2ndnd Biggest Change Biggest Change “Management Style” “Management Style”
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WE CAN TEACH EACH OTHERWE CAN TEACH EACH OTHER WE CAN GUIDE AS LEADERSWE CAN GUIDE AS LEADERS
The Difference we Can MakeThe Difference we Can Make
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Costs to borrow MoneyCosts to borrow Money
InsuranceInsurance
SpaceSpace
Loss due to damaged Loss due to damaged goods and defectsgoods and defects
Cost to Cost to ““Count”Count” inventoryinventory
(OVER AND OVER)(OVER AND OVER)
• Cost to Cost to ““Move”Move” inventoryinventory– (OVER AND OVER)(OVER AND OVER)
Cost of InventoryCost of Inventory
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Inventory is Inventory is NOT NOT an ASSETan ASSET
Inventory is a Inventory is a ““LIABILITY”LIABILITY”
GOAL = Minimize GOAL = Minimize InventoryInventory
EXCESSIVE:EXCESSIVE:
RAW MATERIALSRAW MATERIALS SEMI MADE GOODSSEMI MADE GOODS DEFECTS DEFECTS STAFFSTAFF OVERPRODUCTIONOVERPRODUCTION TOO MANY MACHINESTOO MANY MACHINES
The Accountants have it WrongThe Accountants have it Wrong
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Value Added (VA)Value Added (VA)Transforms material or Information to meet the Transforms material or Information to meet the
true desires and requirements of customertrue desires and requirements of customer
• Non Value Added (NVA)Non Value Added (NVA)– CControl ontrol (Poor)(Poor)
– IInformation nformation (Lack or incorrect)(Lack or incorrect)
– AAdministration dministration (Poor or disorganized)(Poor or disorganized)
– OOther ther (Poor execution,listening,argue etc)(Poor execution,listening,argue etc)
CIAOCIAO = GOOD BYE = REMOVE= GOOD BYE = REMOVE
All Work is either…All Work is either…
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Looking for PartsLooking for Parts
Sewing ProductsSewing Products
Searching for InfoSearching for Info
CommunicationCommunication
Delayed responseDelayed response
ReworkRework
ShoutingShouting
Passing partial infoPassing partial info
Incomplete Blue Incomplete Blue FileFile
TestingTesting
TransparencyTransparency
Quick ResponseQuick Response
Visual StandardsVisual Standards
Working Working individuallyindividually
Finger pointingFinger pointing
Entering DataEntering Data
TrainingTraining
ListeningListening
Which of these Activities Add value..?Which of these Activities Add value..?
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During 1During 1stst steps of steps of ALL Improvement ALL Improvement efforts:efforts:
• By reducing 5% of By reducing 5% of Value AddedValue Added activities.?activities.?
OROR
• By reducing 95% of By reducing 95% of Non Value AddedNon Value Added activities.?activities.?
Where are the Biggest benefits..?Where are the Biggest benefits..?
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Anything that Anything that does “does “NOT ADD NOT ADD VALUE”VALUE” is is WASTE ……..!!!WASTE ……..!!!
……and must be and must be REDUCEDREDUCED or or ELIMINATEDELIMINATED
The No. 1 Fundamental Principle of The No. 1 Fundamental Principle of ImprovementImprovement
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OverproductionOverproduction
DefectsDefects
InventoryInventory
TransportationTransportation
WaitingWaiting
MotionMotion
Non Value Added ProcessesNon Value Added Processes
7 main “Wastes”
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Lack of “Tools” Lack of “Tools”
Mis-informationMis-information
Underutilized PeopleUnderutilized People
Over processingOver processing
CorrectionsCorrections
STS/Reworks/Rejects/Returns/STS/Reworks/Rejects/Returns/CFSCFS
More “Wastes”More “Wastes”
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Zero G/SealZero G/SealZero Insp. FailZero Insp. FailZero Waste Zero Waste Zero DefectsZero DefectsZero ScrapZero ScrapZero ReworkZero ReworkZero DowntimeZero Downtime
Zero InventoryZero InventoryZero handlingZero handlingZero mistakesZero mistakesZero AbsenceZero AbsenceZero DishonestyZero Dishonesty
GOAL= Get even closer to ZeroGOAL= Get even closer to Zero
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Set upsSet ups
Sales quotesSales quotes
Response (QRS)Response (QRS)
Delivery Date Delivery Date promisingpromising
Production Production Process TimeProcess Time
P/O Lead TimesP/O Lead Times
OutsourcingOutsourcing
Engineering Engineering ChangesChanges
Time to MarketTime to Market
ReturnsReturns
RepairsRepairs
Data CollectionData Collection
Data analysisData analysis
Period End closePeriod End close
GOAL= Get even closer to Zero GOAL= Get even closer to Zero Process TimesProcess Times
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Vastly improved Process efficiencyVastly improved Process efficiency
20-40% increase in 20-40% increase in ProductivityProductivity
70-90% improvement in 70-90% improvement in Lead TimeLead Time
40-60% reduction in 40-60% reduction in Floor SpaceFloor Space
50-70% reduction of 50-70% reduction of WIPWIP
40-70% improvement in 40-70% improvement in QualityQuality
Benefits of “Flow”Benefits of “Flow”
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Process of KaizenProcess of Kaizen
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One way flow
In-l
ine
QC
In
In
OutIn In
VS
QC QCIn
In
Out
InIn
Streamlining Process Flow
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Line 1 Product Type 1 Product Type 2
No. Worker’sName
ProcessA
ProcessB
ProcessC
ProcessD
ProcessE
ProcessF
General
1 Ho 2 Chan 3 Cheung 4 Li 5 Au 6 Hui 7 Lam
3 2 3 2 3 2 7
Workers Skill Matrix
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Style No.: ABC 01
Starting Date: 5/8/04 Completion Date: 10/8/04
Total Qty: 3000 pcs
Accumulating Finished Qty: 300 pcs
Date: 6/8/04
Target for every 2 hrs: 135 pcs
Major Process
No. of Workers
8:00 – 10:00
10:00 – 12:00
13:00 – 15:00
15:00 – 17:00
OT hrs Total Qty
Remarks
1 3 138
2 5 110
3 4 140
4 7 100
Efficiency Charts
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HELPS TO DISPLAY INTERNAL EFFICIENCY BETWEEN WORKERS IN DIFFERENT
SEWING LINES
Efficiency Charts
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SOME FACTORIES HAVE “LIVE”/ ”REAL TIME” PROGRESS USING
TECHNOLOGY
Efficiency Charts
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PRESSING STANDARD ON DISPLAY FOR
WORKERS AT PRESSING AREA
PRESSING/VISUAL STANDARD ON DISPLAY
FOR WORKERS AT INSPECTION AREA
Visual Standards and WIP
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GARMENTS ARE STACKED & MESSY BEFORE PRESSING
GARMENTS NEATLY STACKED BEFORE
PRESSING
LESS COST….LESS TIME…AS PER VISUAL STANDARD
Visual Standards and WIP
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After Pressing WIPAfter Pressing WIP
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FABRIC IS STACKED UP TOO HIGH FOR RELAXING BEFORE
CUTTING…MANY ROLLS
FABRIC IS STORED ON RACKS FOR RELAXING BEFORE CUTTING…
ONE ROLL PER SHELF
GOOD/CONSISTENT MEASUREMENTS…AS PER SIZE SPEC
Fabric Relaxation (Jersey / Knit / Stretch Denim)
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Fabric Relaxation (Jersey / Knit / Stretch Denim)
FABRIC IS STORED ON RACKS FOR RELAXING BEFORE CUTTING…
ONE ROLL PER SHELF
GOOD/CONSISTENT MEASUREMENTS…AS PER SIZE SPEC
Fabric Relaxation (Jersey / Knit / Stretch Denim)
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BIG PIECE WASTAGE SMALL WASTAGE
POOR LAYING CHECK BULK MARKER AGAIN
Cutting Room Wastages
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CUT PANELS ARE STACKED UP TOO HIGH AFTER RELAXING….!!!!
CUT BUNDLES STACKED UP TOO HIGH AND MIXED UP BEFORE
SEWING AFTER RELAXING….!!!!
BAD MEASUREMENTS…SHADING/DAMAGE/REWORK/SHORTSHIPMENT
After Cutting WIP
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TOO MANY DEFECTED CUT
PANELS
LESS GARMENTS REPLENISH FABRIC MORE TIME ORDER DELAY LESS PROFIT
NEED TO HAVE BETTER /MORE % FABRIC INSPECTION BEFORE CUTTING
After Cutting Panel Inspection
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WIP STACKED UP TOO HIGH
WORKER NEEDS SUPPORT..? WORKER TOO SLOW..?
WIP STACKED UP TOO HIGH
SUPERVISOR NOT LOOKING AT WIP TOO BUSY “LOOKING GOOD” INCORRECT ATTITUDE
LOW MORAL / NO ENERGY……….DELAY SHIPMENTS/LOSS OF PROFIT
After Cutting Panel Inspection
Highlight “Bottlenecks”(WIP TOO HIGH)
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WIP STACKED UP TOO HIGH
WORKER NEEDS SUPPORT..? WORKER TOO SLOW..?
WIP STACKED UP TOO HIGH
WORKER NEEDS SUPPORT WORKER TIRED..? WORKER UNHAPPY..?
LOW MORAL / NO ENERGY……….DELAY SHIPMENTS/LOSS OF PROFIT
Highlight “Bottlenecks”(WIP TOO HIGH)
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A GOOD METHOD TO KEEP MACHINES FROM COLLECTING
RESIDUE FROM THREADS
Keeping Machines Clean
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DOUBLE CHECK MACHINE CHECKLIST
Keeping Machines Clean
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GUIDE IS INCORRECT TO SPEC
FACTORY QC PASSED..!!!
Accurate Inspections
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1
3
2
4
6
5
8
7
9
CHECK ALL AROUND GARMENTS
FRONT BACK INSIDE
360 Degree Quality Review
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MAJOR DEFECT POINTS CLEARLY HIGHLIGHTED FOR WORKERS AT
INSPECTION TABLES
HOW TO MEASURE GUIDELINES HIGHLIGHTED FOR WORKERS AT
INSPECTION TABLES
Guides at Inspection Tables
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Dept Current Measurement
Appraisal Measurements
Difference%
Timescale
Overproduction
Defects
Inventory
Non Value Added Non Value Added ProcessesProcesses
Transportation
Underutilized Underutilized PeoplePeople
Waiting Time
Internal Internal CorrectionsCorrections
Appraisal and Monitoring
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How can NS support more..?
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NSL QC/ SENIOR HK STAFF DEMONSTRATING FINAL INSPECTION
TO FACTORY QA/QC
SENIOR HK STAFF EXPLAINING NEXT & QCC PROCEDURES TO
FACTORY QC / LOGISTICS WORKERS IN FACTORY
NS training the Factory
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SENIOR HK STAFF CONDUCTING TRAINING SEMINAR TO FACTORY
STAFF
NS training the Factory
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TO BE THE BEST GARMENT
MANUFACTURER IN THE WORLD
FACTORY’S GOAL
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04/09/23 NSL Quality Management 78
Customer Mission StatementCustomer Mission Statement
To Deliver Beautifully Designed, Excellent Quality Clothing and
Home ware quickly, reliably and at Market Leading Prices.
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Q & A