xxxxxx

Change Process

2002

Why to change ?

Why to change ?• High finished goods inventory – avg. 5 weeks• High WIP – avg. 3 weeks• High raw material inventory – avg. 4 weeks

RESULTS:

(a) excessive finance charges

(b) contribution towards slow selling lines and raw material write-offs

(c) lack of flexibility - not serving customers’ needs

(d) poor profit performance.

TASK TEAMDURATION

• 3 month planning

• 3 month implementation

TEAM MEMBERSHIP

• Supervisor

• Production Control

• M&S Liaison / Fabric Purchase

• Production / Work Study

• Garment Engineer

+ Consultant

OPPORTUNITY ASSESSMENT

STEP ANALYSISCutting & Dunfermline High WIP System

No. of Steps 160

No. of Value Adds 24

No. of Non-Value Adds 136

Process Time 19 Mins

Manufacturing Lead Time 12 Days

Distance 1087m

WIP (Dozens) 5366

£ 322K

Space (excluding warehouse) 60886 sq.ft.

Direct Staff 270

“ BLUE SKY ”Cutting & Dunfermline High WIP System Ideal

No. of Steps 160 25

No. of Value Adds 24 24

No. of Non-Value Adds 136 1

Process Time 19 Mins 19 Mins

Manufacturing Lead Time 12 Days ¼ Day

Distance 1087m 50m

WIP (Dozens) 5366 112

£ 322K 6.7K

Space (excluding warehouse) 60886 sq.ft. 9000 sq.ft.

Direct Staff 270 118

PROPOSED PLANCutting & Dunfermline High WIP System Ideal Practical

No. of Steps 160 25 49

No. of Value Adds 24 24 24

No. of Non-Value Adds 136 1 25

Process Time 19 Mins 19 Mins 19 Mins

Manufacturing Lead Time 12 Days ¼ Day 2 Days

Distance 1087m 50m 370m

WIP (Dozens) 5366 112 894

£ 322K 6.7K 53K

Space (excluding warehouse) 60886 sq.ft. 9000 sq.ft. 32606 sq.ft

Direct Staff 270 118 179

GLENROTHESProduction Flow

High WIP System 525 Yards Improved 284 Yards

CONVENTIONAL LINE

Work flow ______

Op. movement ______

No. of ops. 18

18 18

14 17 13

17 12 6 1116 914 915 8

710 6

4 5 5 5 4 3 2

1

FLOW LINEWork flow

_____

Op. movement _____

No. of ops. 12

12

11

1 11

1 11

1 10

2 10

2 9

2 9

2 9

3 8

3 8

3 8

4 7

4 7

4 6

5 6

5 6

IMPROVED LINE SYSTEM

• Shorter lead time

• Low WIP

• Smooth work flow

• Minimal operator movement

• Focused supervision

• Rework - minimal

• Feedback from pressing

• Damaged panels replaced

• Less accessory wastage

• Safe

How could these lines start at 100%(Blue Sky)

What were the issues?

• No structured pre-production process

• Raw materials not available

• Quality problems

• Poor communication

• Lack of information

PRE-PRODUCTION PROCESS

• Introduction of pre-engineering on factory floor• Pre-production test analysis (PPTA)• Machines pre-set prior to line start

Master Schedule• One plan for the business

Action Schedule• Critical dates for each stage of pre-production• Identifying lead times for fabric and trims

Contract Planning/Control• Close liaison with customer• Minimum commitment• “Stock Quality”

ROLE DEVELOPMENTEnlarged Roles

Designers > Technical Designers

Work Study ) > Garment Engineers

Production Managers )

Fabric Buyer )

Accessory Buyer ) > Planner / Buyer

Planner )

• Multi Skilled• More Responsibility• Simplified Structure• Increased Accountability• Clear Lines of Communication

PEOPLE• Investors in People focuses our training

initiatives around an up-to-date business plan

• Team work

• NVQ’s

• Encouragement of ideas (involvement)

CHANGES IN QUALITY SYSTEM

• Better pre-production anticipates most problems

• RTM risk analysis - feedback from RTM analysis

• ISO 9001 & Lloyds formalise quality systems

• End of line and management audits provide information on areas for improvement

CONCLUSION

• Lower stock levels 5 weeks > 2 weeks

• Lower WIP 3 weeks > 2 days• Much more flexible• Line efficiency 65% > 80%• Profitable Nil borrowings• Customer-focused manufacturing system

supported by innovative design

IMPROVEMENT IS NOW A WAY OF WORKING

• Total Productive Maintenance - Operator Involvement with

(TPM) machine care

• Statistical Process Control - Improve the process to make

(SPC) the product better

• JIT Tours - Look for best practice

• Further Task Teams - Powerful method of

implementing change

• Appraisals by Customer - Focus on what your

customer wants

RE-THINKING THE DESIGN PROCESS

OBJECTIVE

High New Product Strike Rate

BY

Analytical approach to product development

IDENTIFY

CUSTOMER GROUPS

FOCUSED BUYINGInitial Buys

Fashion Classics - Updated core products,

e.g. basic t-shirt

Fashion Basics - The ‘looks’ specific to each

season identified from ‘Design

Matrix’, e.g. Slip Dress, Polo

Dress

In Season Purchase

Fashion Newness - To be bought within season,

e.g. Jelly Shoes, Fashion Sportswear

DESIGN MATRIX Major Stores Fashion

Sportswear50’s

Teenager30’s, 40’s

RomanticNeo Mod

The Gap’‘The LimitedExpress’‘BananaRepublic’

‘Donna Karan’

‘Ralph Lauren’

‘Calvin Klein’SohoBoutiques

‘Zara’

Total 6 4 8 3

% Total 75% 50% 100% 27%

Key Tennis - Skirts Shift Dresses Slip Dresses Short A-Line Skirts

Garments Shorts Twin Sets Tea Dresses Pinafores

Dresses Capri Pants Long Bias Skts Jelly Shoes

Polo - Shirts Dirndl - Skirts Flippy Shorts ‘Pac-a-Mac’

Dresses Dresses

Bodies Harringtons

Parkas

TECHNICAL DESIGNER

CURRENT FUNCTION

Design

Fabric Utilisation

Garment SM’s

Costing

Customer

Leads to the development of

THE COMPLETE PRODUCT MANAGER

• Design, Cost and Sell Product

• Liaise with Customer Commercial Management

Customer Fabric Technology

Customer Garment Engineers

IT SYSTEMS DEVELOPMENT

• M&S Payment System

- Trialist• Contracts Management System

- 1 of 5 on Management Board

- Participating in Supplier Forums

- Going live in T74 - 26.06.96.• E-Mail

- Link to Factories, London office and M&S

DESIGN MATRIX

Major Stores FashionSportswear

50's Teenager 30's, 40'sRomantic

Neo Mod

'The Gap'

‘The LimitedExpress’

'BananaRepublic'

'Donna Karen'

'Ralph Lauren'

'Calvin Klein'

Soho Boutiques

'Zara'

Total 6 4 8 3 % Total 75% 50% 100% 27%

Key Garments Tennis - Skirts Shift Dresses Slip Dresses Short A-LineShorts Twin Sets Tea Dresses SkirtsDresses Capri Pants Long Bias Skirts Pinafores

Polo - Shirts Dirndl - Skirts Flippy Shorts Jelly ShoesDresses Dresses 'Pac-a-Mac'Bodies Harringtons

Parkas