TXMI 4250 Week Seven Notes
TXMI 4250 Week Seven Notes 4250
Popular in Survey of Apparel and Soft Goods Manufacturing
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This 5 page Class Notes was uploaded by Ashley Pacilio on Sunday February 28, 2016. The Class Notes belongs to 4250 at University of Georgia taught by Gregory W. Vessels in Spring 2016. Since its upload, it has received 22 views. For similar materials see Survey of Apparel and Soft Goods Manufacturing in Retail at University of Georgia.
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Date Created: 02/28/16
SURVEY APPAREL MANUFACTURING Week Seven: Day One – February 22, 2016 • Exam next Monday • Review on Wednesday • Guest lecture on Friday • Field trip March 30 • Production planning and sourcing • 3 business models: make to order, make to stock/forecast, or a combination of the two • Three principles: o Forecasts are always wrong o The longer the forecast horizon, the worse the forecast o Aggregate forecasts are more accurate • 4 planning phases: strategic (long-term) planning, aggregate planning, plant scheduling, shop floor scheduling • Defining parameters: customer need date, quantity, and customer order date • Customer need date: driven off of selling season (fall, spring, holiday) o Advertising o Catalog drop or Webpage update o Normally a delivery window from 2 to 4 weeks • Customer order date: o Generally this is the last minute o Customers must commit to production for final product definition to meet delivery requirements o Fast fashion – “leagility” – lean manufacturing and agility • Steps to effective production planning o Sales forecast and adjustments o Product cycle (critical path of your product) o Lead times for each component o Transit time o Manufacturing cycle • Critical path of your product (decision chart) o Sales Budget drives Sales Forecast o Sales forecast adjusted to performance (POS – point of sale) o Bill of Material defines critical path of each component o Vendor metrics o Manufacturing location o Manufacturing capabilities and capacity o Transit times o Store ready? o Distribution channels • Factors need to be considered while preparing production plan o Production capacity of plant o Style type of merchandise o Festivals of manufacturing country o Holidays o Shipment details o Festivals of country from where raw material is imported o Logistics facilities o Lead time estimated by buyer o Style complications o Fabric and trims manufacturing complications o Buffer required from each department o Political stability of the country • Technology o PLM o ERP o SCM o Dynamic vs. Static planning • What management philosophy would be attracted to one or the other? • What are some of the common themes among these systems? o Which would you choose for your business? Product-life cycle • Product Lifestyle Management: PLM Software supports the product development process, to integrate people, processes and systems. It provides a product information “warehouse” for organizations. Primary benefits of PLM software include: o Faster time-to-market o Increased productivity o Design efficiency o Increased product quality o Lower cost of new product introduction o Insight into critical business processes o Better reporting and analytics • Enterprise Resource Planning o ERP provides an integrated view of core business processes, often in real-time, using common database maintained by a database management system o ERP systems track business resources – cash, raw materials, production capacity – and the status of business commitments o The applications that make up the system share data across the various departments o Facilitates information flow Week Seven: Day Two – February 24, 2016 • What fabric might be classified as ¼ Blood? Wool • Forecast become more accurate as they get closer to production start up: true • Which IT Systems has a logistics focus? PLM, SCM, or ERP? SCM • Which system is primarily for cotton? Graniteville 78 • What is most commonly identified by brand name? Synthetic fibers • What fiber is the micron system most commonly used to classify? Wool • What is the Dallas System an example of? Fabric inspection • If you are measuring fiber length, what classification method are you using? Classing Cotton • Make to Order is a Production Planning Process: True • What is the difference between Dynamic and Static planning? Dynamic plans constantly change; static plans never change • What are typically the actual costs of making samples? 3-5 times the normal cut/make costs • This is a concept sample, often a rough rendition of a drape sewn together: muslin • Which system is based on company standards? Proprietary • Forecasting is used more for Make to Order or Make to Plan? Make to Plan • Which IT System has a financial focus? ERP • Which System uses photos of defects? Graniteville 78 • Samples that the factory provides to confirm their understanding of the product: Counter sample • What are the three broad classes of samples, one for each phase? Design, sales, and production • Which IT System would a creative designer prefer? PLM • What are the four planning phases? Strategic (Long-term) planning, aggregate planning, plant scheduling, and shop floor scheduling • Forecasts are always accurate: False • Which IT System has a product focus? PLM • Samples that come from the first cuttings: Top of production (TOP) • If total points do not exceed the length of fabric, it is considered good. If it exceeds the length the roll is considered a second. The system is: 10 point • Which system is primarily for knit? Dallas system • Hautecloth: • Techease: Week Seven: Day Three – February 26, 2016 • Guest Speaker – Mark Kirby – graduated from Auburn • Oxford Industries – VP of Operations – 32 years • Portfolio based company • Tommy Bahama, Lilly Pultizer, Lanier Clothes, Oxford Golf (related to Onward Reserve) • Design and Product Development o Creativity and inspiration o Past successes o Designs are converted into product specifications (“recipe”) – what and how to make it o Product Development Management (“PDM”) software o Critical for accuracy and efficiency o FlexPLM, WebPDM, and WFX • Merchandising o “The intersection of creative and commercially practical” o Inputs: § Historical market data § Early feedback from sales § “Hunches” and trends o Pricing § Total cost of product • Landed cost, plus… • Overheads § Desired mark-up § Resulting “sell price” and market assessment (realistic?) § Work it from the retail price backwards • Wholesale business – sell Lilly Pulitzer to Belk, etc. • Sourcing o Selecting the best place to produce: cost, quality, lead time o Working closely with Product Development on sampling o Agreeing on price and Terms of Sale à “Incoterms” o Placing the Purchase Order & amending as needed (if not too late!) o Monitoring Purchase Order status and expected factory ship date o FOP and DDP are most common in the industry o Usually order changes are because of market conditions • Production o Receive, inspect, and stage materials o Cutting or knitting o Sewing and finishing: wash, press o Quality control o Packaging: cartons or GOH o Make sure the factories treat the people well with working conditions and benefits o Leaves the factory store-ready • Inbound Logistics –container loading o Goods loaded for shipment o Preparation of shipment documents o Customs Release • Customs Entry Process o Required shipping documents sent to our Customs Broker upon departure of shipment from origin o Broker files a customs “Entry” (like a Tax Return) § Description (and Tariff Number) of the goods § Value of the goods- usually the purchase price o Goods arrive at Customs Port § May be inspected, but not usually o Goods are “released” and picked-up by our trucker § Textiles and apparel are only “conditionally” released for the first six months th o Duties paid 15 day of the month • Textiles and apparel pay the highest duties • The whole man-made fiber industry was invented in the U.S. • Distribution o Arrival, unloading, scan, and put-away o Picking tickets sent from Customer Service o Pull & pack (full case/pick-pack) o Dispatch & confirm actual shipment details (for Customer Invoicing) o Buildings are ugly and not labeled in order to prevent theft • Big customers usually don’t have to pay until 60 days after you ship it to them • Sales o Wholesale § Higher volume, lower margins § Sales force needs product/market knowledge and key relationships o Retail § Higher margin, lower volume § Location, location, location! § Must have a support infrastructure o E-Commerce § Highest margin, volume is growing § Must have the IT • Customer Services o “Front end” o “Back end” o Returns are 25% for Lilly Pulitzer – because of sizing • Support Functions o Information systems and IT o Accounting, treasury, and tax o Cred and collections o Payroll o Etc.