22 Apparel Industry – Organizational set up – Planning and product selection – production planning and control

B. Geetha Manohari

1. INTRODUCTION

Over a period of time, Apparel industry experienced strategic growth and competitiveness among the manufacturers. Apparel industry are just as diverse as the design they produce. They can be large or small have one employee or thousands, produce high end high fashion or budget everyday garments. Apparel is an ideal industry and it helps to account for large number of jobs associated with the industry. Furthermore, it has extensive forward and backward linkages with associated industry. Clearly no two industry are exactly alike, but there is a transition from the traditional focus on production efficiency to more focus on consumer’s changing needs. Technology has dramatically altered the apparel industry and provided the manufacturers with the ability to respond quickly to change. Moreover it allows global expansion and communicate the apparel specifications instantly through the internet.

2. OBJECTIVES

Upon Completion of the module, students will be able to

• Describe the organizational structure of the Apparel Industry

• Explain the fundamental steps in product planning and selection

• Outline the need and functions of production planning and control

3. APPAREL INDUSTRY

Any organization need structuring so that, lines of authority along with individual duties and responsibilities can be understood by every company member. Most of the companies prepare graphical representation of organizational structure and the method of presenting in graphical manner is called organizational chart. The Apparel industry is fascinating example of manufacturing and the supply chain. The supply chain of the apparel industry commence from farming of cotton in the cotton fields, manufacturing man made fiber to selling clothes in retail stores to the consumer.

3.1 Structure of the Apparel Industry

Broadly the skeleton of the Apparel industry can be divided into four stages. (Figure 1)

Stage 1: Textiles and Findings Manufacturers

In the mill level, the raw materials for the apparel manufacturing process such as fibres, yarns, fabrics, zippers, threads, trims and buttons are manufactured and apparel manufacturer are vertically integrated or buy from vendor’s open stocks.

Stage 2: Apparel Manufacturers

Apparel Manufacturers are responsible for the marketing, merchandising and production of products. In this stage, there are two types of apparel manufacturers.

i. Perform manufacturing within their own facilities and employees

ii. Contract some or all manufacturing functions to other firms. There are 3 types of contractors:

Cut-make-trim (CMT) Contractors
Full package program (FPP)
Specialty contractors

Stage 3: Retailers

The Apparel manufacturers may be vertically integrated into the retail sector through owning their own stores which aid decision making during product development.

There are different types of retailers in today’s consumer goods markets: catalogue retailers, department store retailers, internet retailers, mass retailers, specialty retailers, warehouse/wholesale clubs, Retail outlets.

Stage 4: Consumers

The target of the textile and Apparel manufacturers are the ultimate consumers.
Satisfied consumers make business growth and profitability possible.
Decisions made at all levels are based on forecast of consumer demand.

Figure1 : Structure of the Apparel Industry

4. ORGANIZATIONAL SETUP OF THE APPAREL INDUSTRY

The flow chart shows the organizational Set up of the Indian Apparel Export Industry. The Managing Director is responsible for the performance of the company. The Operation Head Manages the entire factory operations and ensure that factory is running profitability. Design Head Responsible for the design and development of clothing. Marketing Head Focuses on publicizing and increasing awareness of a particular brand, such as designer labels or department stores. Merchandising Manager Creates a good relationship in between exporter & buyer. Production Manager heads the factory and Quality. Logistics Head looks after the Export documentation and arranging vessels for goods. Administrative head directs the activities of subordinate staff in the coordination and management of various administrative activities for an organization.

The roles and responsibility of the important personnel in the Apparel Industry.

4.1 Managing Director

Managing Director reports to the chairman or board of directors.
As the Managing Director, responsibilities will include:

formulating and successfully implementing company policy;
directing strategy towards the profitable growth and operation of the company;
closely monitoring the operating and financial results against plans and budgets;
taking remedial action where necessary and informing the board of significant changes;
maintaining the operational performance of the company;
representing the company to major customers and professional associations;
building and maintaining an effective executive team.

4.2 Operations Head

Operation Head Coordinates with Design, Marketing and merchandising, Logistics, Production and Administrative team
Planning of production units
Style allocation to units
Technical setting of the garment
Involvement in pp meetings
Production monitoring
Factory work study/industrial engineering
Quality of the finished product
Shipment planning and shipments
Costing of production floor
Cost cutting of production processes
Employee Training
Buyer Compliance
Recruitment:
Workers personal & welfare activities
Inter departmental issues

4.3 Design Head

• In charge of guiding all steps of the design process, from initial conception to final manufacture and marketing.

• monitoring current fashion

• Supervising a team of technical designers

• Working with individual clients to design pieces of custom couture

• Collaborating with sales and marketing managers to determine the best way to present new ideas to the public.

4.4 Marketing Head

• Assisting their employers with analyzing advertising campaigns and monitoring brand quality.

• Monitoring the reactions of customers and retail outlets to new products and brand initiatives.

• Overseeing a number of subordinate employees.

• In charge of branding and marketing new products.

4.5 Merchandising Manager

• Looks after every job like buying the raw material, making the garment, finishing the garment, documentation, finally shipping

• Internal & external communication

• Sampling

• Lab dips

• Preparing internal order sheet

• Preparing purchase orders

• Advising and assisting production

• Advising quality department about quality level

• Mediating production and quality departments

• Giving shipping instructions and following shipping

• Helping documentation department

• Taking responsibility for inspections

• Following shipment

4.6 Production Head

• Production planning for the lines (manpower, machine and styles)

• Giving instruction to the line supervisors

• Line performance analysis (efficiency, man to machine ratio, cost/pieces) and plan for continuous improvement

• Analysis of quality data

• Discussion with other team members (like merchants, fabric manager, cutting team, planning, IE team)

• Taking main role in PP meeting

• Looking after job works (such as printing, embroidery, garment dying etc) and taking decision on selection vendors for job work

• Planning for Overtime work

• Deciding rate for piece rate employees (sewing, thread cutting, pressing etc.)

• Examining the finished product carefully and look for flaws in them

• The flaws found in manufacturing have to be rectified immediatel

• Have to check for the quality of the raw materials and standardize it

• Coordinating with the main office from where the manufacturing orders come from

• Hiring the workers for the factory and provide training for them

• Assigning the workers to the different department according to their skills

• Ensuring all the manufacturing targets are met

4.7 Administration Head

•Managing various operations at a facility (i.e. food service, physical plant, warehouse, accounting and finance, environmental health and fire safety).

• Identifies legal requirements and government reporting regulations affecting human resources functions and ensures policies, procedures, and reporting are in compliance.

• Recruits, interviews, tests, and selects employees to fill vacant positions.

• Plans and conducts new employee orientation to foster positive attitude toward company goals.

•Keeps records of benefits plans participation such as insurance and pension plan, personnel transactions such as hires, promotions, transfers, performance reviews, and terminations, and employee statistics for government reporting.

• Advises management in appropriate resolution of employee relations issues.

• Administers salary administration program to ensure compliance and equity within organization.

•Conducts wage surveys within labor market to determine competitive wage rate. Prepares budget of human resources operations.

• Prepares employee separation notices and related documentation, and conducts exit interviews to determine reasons behind separations.

• Prepares reports and recommends procedures to reduce absenteeism and turnover.

• Represents organization at personnel-related hearings and investigations.

• Contracts with outside suppliers to provide employee services, such as canteen, transportation, or relocation service.

5. PRODUCT PLANNING AND SELECTION

Product Planning phase begins with stating product objectives which includes assessment of technology development and market objectives. The output of the planning phase specifies the target market for the product, business goals, key assumptions and constraints. Product planning is an activity that considers the apparel product mix that an organization might pursue and determines what product assortment will be pursued over a period of time. product mix is the total selection of goods and services that a company makes or sells. product assortment is the range of merchandise within categories that a company sells.

Figure 3 : New product development process.

The product Planning phase precedes the product development process. It identifies the product assortment to be developed by the organization and the timing of their introduction to the market. It regularly updated on an annual basis / season basis and it should be reviewed to reflect changes in the competitive environment, changes in technology, and information on the success of existing products. Several product revisions occur, with continuous interaction among designers, stylists and marketing functions. Product planning are developed with the company’s goals, capabilities, constraints and competitive environment in mind.

5.1 Product failure – Why?

• Inadequate coverage of target market

• Poor timing of market introduction of products

• Poor capacity planning for product development

• Mismatch between resource requirement and development competency

• Frequent changes in Product line

5.2 Product Planning Process

The Planning Process comprises Determine strategy for products, Market Strategy & Feasibility Study, Identification of specific work activities, Positioning and testing of

Figure 4: Product Planning Process

5.3 Product Planning and Selection

Determination of strategy for Products

Defines an overall strategy for products to guide in selection, development of products and product to be produced and results to be obtained, time, cost and performance standards, to achieve the objectives

Define market & Feasibility study

Market study describes definition of target markets, customer, competitive strengths, and a competition strategy.

Feasibility study involves assessment of technology, assessment of market and Cost-Benefit analysis. Based on the study, the product to be identified as techno economically feasible or not.

Identification of specific work activities

It refers to breaking the entire product into definable and executable jobs using work breakdown structure. It lists various tasks needed to achieve the product objectives.

Positioning and Testing of Products

It Involves positioning of planned products relative to competitive products and identify superior quality that differentiate or distinguish these products from the competitive counter parts in the market & modification in design if required. It also requires rationalizing these competitive products developed and establishment of priorities for products to be developed.

Preparation of production process, budget and resource plan

It establishes preparation of process plan and procure machines, work aids and other resources and also constitutes estimation of development resources and balance product requirements with a budget in the overall business plan

Forecasting of time, cost and performance

It determines in advance the time, cost, time and performance projections for the completion of the product.

6. PRODUCTION PLANNING AND CONTROL

Production consists of a series of sequential operations, involves transformation of materials into a desirable product. It is a vital tool available to the management for streamlining the production operations and attaining the maximum utilization of firm’s resources to enhance the productivity. It helps to achieve uninterrupted flow of materials through production line by making available these materials at right time and required quantity. Thus production planning and control can be defined as the “direction and coordination of firms’ resources towards attaining the prefixed goals”.

6.1 Need for Production Planning and Control

• Effective utilization of resources

• Steady flow of production

• Estimates the resources

• Ensures optimum inventory

• Co-ordinates activities of departments

• Minimizes wastage of raw materials

• Improves the labour productivity

• Helps to capture the market

• Provides a better work environment

• Facilitates quality improvement

• Results in consumer satisfaction

• On time Supply of goods to the customers on time

• Reduces the production cost

6.2 Three levels of Production Planning

• FACTORY PLANNING – The sequence of work tasks planned in terms of building, machines, equipment’s and space availability. This stage deals with plant location and layout

• PROCESS PLANNING – This stage deals with location of the operations in the production process and layout of work centres

• OPERATION PLANNING – This stage deals with methods required to perform each operation, selection of work centres, designing of tools.

6.3 Production Control

Even though planning of activities is done, most of the time it is not possible to achieve 100% productivity as per the plan schedule. There are numerous factors which will affect production system & deviate the planned activities. At that time production control comes into action and takes corrective action to match the planned and actual production. Thus the production control directs and regulates all the activities of the production process and verifies whether the activities are going in accordance with production plan or not.

6.4 Functions of Production Planning and Control

Preplanning is a macro level planning which deals with analysis of data based upon the forecasted demand, market analysis and product design and development. Preplanning function is concerned with new processes and developments, equipment policy, replacement and work flow. The preplanning function of PPC is concerned with decision making with respect to methods, machines and workflow with respect to available scope and capacity. The planning function deals with analysis of 4M’s i.e. Machines, Methods, Materials and Manpower. Control phase is effected by despatching, inspection and expediting material control, analysis of work in process. Finally, evaluation makes the PPC cycle complete and corrective actions are taken through a feedback from analysis. A good communication and feedback system is essential to enhance and ensure effectiveness of PPC.

Summary

In order to maximize the profits and optimize the utilization of resources, each apparel industry must continuously adjust and adapt its products and services to the changing requirements of customers. To be successful and to stay in business each company must be structured in such a way that best serves its needs.

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References

Grace I Kunz, Ruth E Glock, ” Apparel Manufacturing – Sewn Product Analysis”, 4th edition, Prentice hall, ISBN-13: 978-0131119826.
Karl T. Ulrich, Steven D. Eppinger, ” Product design and development”, 5th edition, McGraw-Hill, 2012 ISBN 978-0-07-340477-6.
Jay Diamond, Ellen Diamond, Sherri Litt, ” Fashion Retailing – A Multi channel Approach”, 3rd edition, Fair child books, 2015 ISBN 9781609019051.
Martand Telesang, ” Industrial Engineering and Production Management”, 2nd edition, S.Chand Publisher, 2006 ISBN -13 9788121917735.
B.S.Goel, ” Production Operation Management”, K.K.Mittal for Pragati Prakashan, Meerut.