STUDY OF INDUSTRY 4.

0
IN THE INDIAN APPAREL INDUSTRY

A dissertation submitted in partial fulfilment of the

requirement for the award of degree in

Bachelor of Fashion Technology

(Apparel Production)

Submitted By

NIMESHEE SINGH

Under the Guidance of

MR. T. S. PRAKASH

Department of Fashion Technology

National Institute of Fashion Technology, (Mumbai)

May, 2018
Abstract
This study explores the current scenario of industry 4.0 in other industries as well as the

apparel industry. It takes a look at various technologies that are currently available for

underdevelopment that facilitate the implementation of industry 4.0 in a manufacturing

unit. The study also investigates current implementations of industry 4.0 and smart

factories such as SunPower, to develop an implementation Plan tailored for the apparel

industry, especially in India. It provides guidelines for this implementation along with a

series of steps that an organisation can follow to implement industry 4.0 or digitalization

in the manufacturing unit. This implementation plan consists of 5 phases. The first

phase consists of the implementation of MES PLM, and ERP software. The second

phase consists of integrating the software implemented in the first phase to allow for

data flow between these disparate systems. The third phase consists of PLC

integration, which utilises PLCs already present in Programmable Sewing Machines to

collect production-related data. The next phase is about implementing Robotics, which

is still an experimental phase as very few robotic machines are available for the apparel

industry. The final phase comprises of the implementation of Big Data Analytics,

artificial intelligence, machine learning etc. To automate decision making processes in

the apparel industry.

2
 Certificate

“This is to certify that this Project Report titled “Study of Industry 4.0 in the Indian

Apparel Industry” is based on my (Nimeshee Singh) original research work,

conducted under the guidance of Mr. T. S. Prakash towards partial fulfilment of the

requirement for award of the Bachelor’s Degree in Fashion Technology (Apparel

Production), of the National Institute of Fashion Technology, Mumbai.

No part of this work has been copied from any other source. Material, wherever

borrowed has been duly acknowledged.”

Signature of Author/Researcher

3
 Acknowledgements
This project opportunity I had with Rajesh Bheda Consulting Pvt. Ltd. was a great

chance for my learning and professional development. I am grateful to my institute,

NIFT Mumbai, for providing me with this opportunity and to Rajesh Bheda Consulting

Pvt. Ltd. for letting me work with their esteemed organization.

I am highly indebted to my faculty mentor, Mr. T.S. Prakash for his guidance and

constant supervision as well as for providing necessary information regarding the

project & also for his continuous support in completing the project.

I express my deepest gratitude and special thanks to Dr. Rajesh Bheda, CEO, Rajesh

Bheda Consulting Pvt. Ltd. who took out time to hear me out and guide me.

I also express my deepest thanks to Mr. Nikhil Padhi, Solution Architect, SunPower

Corporation for guiding me in this project, Mr. Hasitha Jayatilake, Executive, MAS

Holdings for providing his insight for this project and Mr Sushil Raturi, Associate

Professor, NIFT Mumbai for his guidance in this project. I would also like to thank all the

companies that provided valuable data for the purpose of this project.

Last, but not the least, I acknowledge the support my parents gave me in this project.

They are a source of inspiration for me and without them I could not have completed

this project.

I perceive this opportunity as a big milestone in my career development.

Thanking you,

Nimeshee Singh

4
List of Tables
Table 1 Details of Case 1 .............................................................................................. 77

Table 2 Details of Case 2 .............................................................................................. 80

Table 3 Details of Case 3 .............................................................................................. 82

Table 4 Financial Data of Phase I ................................................................................. 85

Table 5 Cost of MES Implementation ............................................................................ 86

Table 6 Cost of PLM...................................................................................................... 90

Table 7 Cost of ERP...................................................................................................... 92

Table 8 Benefits of ERP ................................................................................................ 92

List of Figures
Figure 1 Key technologies of Industry 4.0 ....................................................................... 7

Figure 2 Smart factory implementation status across geographies ............................... 16

Figure 3 5 Phase Implementation Plan ......................................................................... 30

Figure 4: Flowchart depicting data flow and connections between various systems ..... 33

Figure 5 Data flow after integration ............................................................................... 59

Figure 6 Proposed movement of data ......................................................................... 109

Figure 7 Process of data collection ............................................................................. 110

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Contents
Abstract ........................................................................................................................... 2
Certificate ........................................................................................................................ 3
Acknowledgements ......................................................................................................... 4
List of Tables ................................................................................................................... 5
List of Figures .................................................................................................................. 5
1. Introduction & Need of the Topic .............................................................................. 1
2. Objective of the Research ........................................................................................ 4
3. Review of Literature ................................................................................................. 5
4. Methodology .......................................................................................................... 26
5. Overview of Implementation Plan........................................................................... 28
Phase 1: Internal Data Collection and Storage (Isolated Systems) ............................... 31
Phase 2: Systems Integration & Communication .......................................................... 57
Phase 3: Automation & PLC Integration ........................................................................ 62
Phase 4: Higher-level automation & Robotics ............................................................... 66
Phase 5: Big Data Analytics & Artificial Intelligence ...................................................... 68
Case 1 ........................................................................................................................... 77
Case 2 ........................................................................................................................... 80
Case 3 ........................................................................................................................... 81
6. Financial Data ......................................................................................................... 85
7. Results ................................................................................................................... 97
8. Limitations & Scope of Further Study ..................................................................... 99
9. Conclusion ........................................................................................................... 100
Concept Note for Shop Floor Data Collection Attachment .......................................... 101
Appendix A - Questionnaire ............................................................................................. I
Appendix B – List of Respondents .................................................................................. V
Annexure A – List of Persons Contacted........................................................................ VI

6
1. Introduction & Need of the Topic
Manufacturing, irrespective of the product, requires data. This data can come from

various sources. It can be a forecast of future sales, or real time data of pieces

produced per shift from the production floor. Before the advent of digital technology, this

data was collected and analysed manually. Through new technology, it has become

easier, faster and cheaper to collect and analyse data via digital means. A digital

revolution is on the horizon for the manufacturing industry, and it is being called Industry

4.0.

Industry 4.0 is a concept revolving around cyber-physical systems—the merging of

virtual and real worlds and creating a platform of interoperability between IT and

operations technology. By using automation and data processing systems in

conjunction it is possible to create a “smart” manufacturing environment. As

technologically advanced machineries are used to perform the required operations,

cyber-physical systems that are embedded in the equipment monitor these operations,

collecting real-time data and making decentralized decisions as and when required.

Such manufacturing environments, i.e. smart factories, are flexible and can deal with

changes in demand on a real-time scale.

The apparel industry has been in a technological rut since after the invention of the

sewing machine; while some technological advances have been made, automation has

not been adopted to its full potential. Garment manufacturing is a labour-intensive

industry, primarily because of the complex nature of operations and the pliability of

fabric that makes it harder to manipulate with robotic appendages. Recent

developments show that the industry is catching up, and at the right time. “Apparel 4.0”,

1
the introduction of Industry 4.0 in the apparel industry, has now become a key topic of

discussion. Automation from the 80s and 90s is making a comeback in a more

digitalized and connected form.

In an average garment production scenario, the cut-to-ship ratio is around 98%. This

means that for every 10,000 garments cut for production, 200 are not being shipped. Of

the total garments that are overall produced, around 30% are never even worn. [1]

Why? This is because the entire supply chain relies on forecasting and estimation. The

defect and rework rate is estimated, and fabric is ordered in excess accordingly. When

the actual values vary from the forecasted values, it generates considerable losses.

Sales forecasts are made, which, when not reached, lead to discounted sales and

deadstock.

By converting manufacturing units to ‘smart’ factories, it is possible to tremendously

reduce the amount of wastage. Not only is it economical, but also sustainable. Smart

factories are immensely flexible, and if the execution is right, the apparel production

process can be built on the fundamentals of mass-customization, which will reduce the

waste of 30% to near 0%.

Industry 4.0 and smart factories will be a major change for the apparel industry. It will

play a major role in this new revolution. As customer needs shift towards mass

customization, it is imperative for the manufacturers to reduce their production lead

times and increase flexibility. The Indian apparel market is calculated to grow at a

CAGR of 13% and is predicted to reach approximately USD 124 billion by 2020, which

means it will be a significant value driver in the near future. [2]

2
It is necessary now more than ever for apparel companies to assess their positions and

ready themselves for the oncoming wave of changes. For this purpose, a thorough

study is required to be undertaken which analyses the current scenario of the apparel

sector in India as well as elsewhere. This study, thus, focuses on the implications of

Industry 4.0 in the garment industry, especially in India.

3
2. Objective of the Research
This project focuses on the implications of Industry 4.0 on the apparel sector, especially

in India. The project will be taking into account the recent interest of government in the

textile sector as well as advances made to digitize manufacturing and adopt Industry

4.0. The primary objective of the project is

To study Industry 4.0 in the Indian apparel industry.

The related sub objectives of the project are:

1. Study the various technologies that are associated with smart factories, such as

Internet of Things (IoT), AI, Automatic Sewing machines, Manufacturing Execution

Systems (MES) etc. to understand their usability, applications and drawbacks.

2. To study the usage of new or under-development Industry 4.0-based technologies

in other industries and in the apparel sector

3. To put together a guideline implementation plan for Industry 4.0/digitization tailored

for the apparel industry.

4. To develop a device to collect real time data from apparel manufacturing shop floor

4
3. Review of Literature
3.1 Smart Factories

Radziwon et al. conceptualized smart factories as the leap forward from more traditional

automation systems to a more connected & flexible system that can continuously and

simultaneously collect and analyse data to cope with changing demands. [3] Such a

setup can effectively integrate data from various levels and manage manufacturing

processes accordingly across the entire manufacturing network. According to Burke et

al., Deloitte, this can create a more agile manufacturing environment with lesser down

time and the ability to deal with fluctuations in the facility or at a larger scale. [4]

As the market moves towards a more customer-centric model, manufacturers are facing

the demand for mass customization, reduction in time to market, improvements in the

quality and reduction in cost of the product. However, according to Yoon et al. (2012),

conventional manufacturing systems such as lean-, flexible- and agile-manufacturing

systems are not sufficient to cater to the needs of the industry. Instead, a U-factory, with

ubiquitous computing technology is proposed. [5]

The concept of a U-factory is similar to that of a smart factory, which utilizes cyber-

physical systems embedded in various areas of a production facility to collect data and

collaborate accordingly. A true smart factory will incorporate both horizontal and vertical

integration to influence a broader ecosystem. [3]

5
Another vision of a smart factory by Hadar & Bilberg (2012) incorporates the idea of a

decentralized supply chain – with localized smart manufacturing units that have the

capability to focus on the local demand trends. The authors focus on the challenges

faced by Danish companies that operate on a global scale, such as Lego. Because of

the global nature of these companies’ outreach, their supply chains are often complex

and consist of several contributors. The authors suggest that by following a glocalized

approach, lead times and inventories can be minimized while also maintaining a certain

level of customization and responsiveness to changes. [6]

Yet another study by Kolberg & Zühlke (2015) proposes that lean manufacturing can be

supplemented by Industry 4.0 technologies. Lean processes are more standardized and

transparent, thus reducing the risks associated with such integration. There is a

requirement for a proper framework, which, when established, can prove to be quite a

promising field. [7]

The findings of a recent global survey by Capgemini suggest that by the end of 2022,

manufacturers expect that 21% of their plants will be smart factories. Sectors such as

aerospace & defence, industrial manufacturing, and automotive, where people work

alongside intelligent machines, are expected to lead this transition. [8]

3.2 Key Technologies

Smart factories could add $500 billion to $1.5 trillion in value added to the global

economy in five years, as estimated by Capgemini (2017). [9]The entire manufacturing

process will be redefined from the grassroots level in order to make way for the latest

technologies. Smart factories are a component in the grand scheme of Industry 4.0,

6
which will mark the beginning of a new era for industrial manufacturing. The key

technologies that drive the transformation of industrial production are visualized as a

flowchart by Posada (2015), [10] as below:

Semantic
Technologies
• AI
• Intelligent UI IoT, Industrial
Internet, cloud
technologies
Simulation • Cloud computing
• Edge Computing
• Fog Computing
• Intelligent ERP

Product
Industrial Big
Lifecycle
Data
Management
INDUSTRY
4.0

Visual
Cybersecurity Computing
• Augmented Reality

Intelligent
Robotics Industrial
• Robots Automation
• Cobots

Figure 1 Key technologies of Industry 4.0

Perhaps the most essential technology is the Internet of Things (IoT), which is not only

used in smart factories, but also in smart homes and smart cities. When used in

7
household devices, it gives the user the freedom to control appliances with the touch of

a button. On the production floor, it has unlimited possibilities.

IoT is the link that connects the sensors and actuators in the equipment to the data

collection mainframe, which would otherwise require bulky wiring and large investment.

The manufacturing industry is currently leading in terms of use of IoT, with an

investment of $178 billion in 2016, which is more than twice as much than the second

largest vertical market (in IoT spend), which is transportation. [11] IoT can be

successfully implemented to monitor the production flow, manage equipment remotely

and for condition based maintenance. Data collected from IoT smart devices can be

used for quality monitoring and enhancement of the production processes. [11]

Rouse (2016) explains the definition of big data: this term describes any voluminous

amount of structured, semi-structured and unstructured data that has the potential to be

mined for information; it is characterized by 3 Vs, which are large volume of data, wide

variety of data types and the velocity at which this data must be processed. [12]

Computing has to be centralized in the cloud as several sources collect data

simultaneously. Cloud based storage saves this data remotely, which can then be

accessed via an authorized electronic device connected to the internet. [13]

A similar concept, edge computing, is defined by Butler (2017) as a technology that

focuses on computing closer to the device rather than sending it all the way to the data

centre. Edge computing triages the data locally so some of it is processed locally,

reducing the backhaul traffic to the central repository. [14]

8
As manufacturing technology improves, Shoemaker (2017) anticipates that planning

procedures must be updated to keep up with the large amounts of data and provide

outputs that cater to the enhanced business processes and are easy to understand.

Intelligence ERP (iERP) utilized machine learning and differentiated user experiences to

provide smart factories with a competitive edge over others. [15]

These technologies, when used in conjunction, can be used to run simulations of the

production process beforehand, to pinpoint any potential problems. Wright (2017)

reports that augmented reality is being used in some companies for the training of

maintenance staff, supporting workers in complex operations, and for quality control.

[16] Various industries are planning to implement Industry 4.0 in a manufacturing

scenario. From automobiles to elevators, from sports shoes to aerospace, Industry 4.0

is making a significant impact.

9
3.3 Apparel Manufacturing-specific Technologies

In an apparel manufacturing unit, or more precisely on the shop floor, huge volumes of

data are continuously being generated. However, much of this data is neither captured,

nor analysed. For example, while the supervisor may keep track of the number of

pieces an operator is producing per hour, it is very difficult for him/her to manually keep

track of how much time the operator is spending in material handling, and how much is

the actual needle time, even for a single operator. Multiply this by the number of

operations in a line, and the task seems virtually impossible. But by using an

appropriate sensor-actuator combination, real-time data can be collected and analysed

simultaneously. Fleish (2010) anticipates that from this data, blind spots can be found

that were previously unknown, and can help management in decision making. [17]

The apparel manufacturing sector is not a heavy industry, which can account, in some

part, for the fact that automation has not been completely incorporated into the

production process. This combined with the fact that fabric, the main component of

garments, is extremely pliable in nature and cannot be as easily manipulated using

robotic appendages, has caused a technological rut in the past few decades.

[18]However, in recent times, several new innovations have been made that may pave

the way for apparel manufacturing companies to convert to smart factories.

Several new and exciting technological advances have already been made in this

direction in apparel manufacturing. Sewing machines can not only sew straight lines

without any human aid, but also complex curves (Vetron AutoSew), wirelessly accept

settings from a smartphone (Brother), follow hand gestures and even communicate with

10
other machines to co-ordinate production (QONDAC Networks). Modular machines

have been developed with detachable heads so that several types of heads can fit on a

machine (Vetron Modular), increasing flexibility and decreasing changeover time. IoT

based machines have been devised, which when used along with Industrial Internet can

communicate with one another and humans to optimize performance.

Brother has developed a standalone IoT system that can be introduced to a

manufacturing unit for 1/5 of the market price. It can be introduced to a factory

regardless of its scale. The cloud-based system collects real-time data and visualizes it

in the form of graphs, charts and diagrams that can be viewed remotely to ensure better

monitoring.

Juki DDL 9000C is a series of SNLS sewing machines in which adjustments are fully

digitalized. The settings can be reproduced with total accuracy to perfectly suit the

materials being sewn. The machine has both vertically & horizontally driven feed

mechanism, which allows for better feed and less chances of seam defects. Thread

tension and presser foot pressure along with other settings are digitally controlled via a

control panel mounted on the machine. Smart phones can be paired to the machine via

NFC (Near Field Communication) to browse and edit data and settings. The machine

can even detect multiple layers and change settings accordingly to give a better stitch

quality.

Vetron, a Chinese machine manufacturer, has developed v_sion Monitoring System,

which keeps track of real time sewing data on the production floor. Vetron Trace sewing

machine follows the operator’s hand gestures to sew a garment. The Autoseam

machine sews curves automatically. Also, the company has developed modular
11
machine heads that can be interchanged to reduce downtime while setting up a sewing

line.

Mitsubishi has come up with a smart factory concept, called eF@ctory. The company

also has developed industrial sewing machines and automation solutions through which

production data can be extracted from the machine controllers in real time.

Since the apparel industry is a highly labour intensive one, it is important to consider the

impact of implementing new technology on the manpower requirements of a

manufacturing unit and whether or not those needs can be fulfilled through appropriate

training.

Case of Hirdaramani, Sri Lanka

In a conference on Apparel 4.0, Mr. Samath Fernando from Hirdaramani, Sri Lanka,

explained how AI and Big Data were being used to improve the business processes.

While robotics is yet to enter in apparel manufacturing, but cloud, mobility and data are

now being used in Industry 4.0 perspective and are attracting major investments.

According to him, data is at core of I4.0. BI (Business Intelligence) and Artificial

Intelligence are main components of Hirdaramani’s I4.0 strategy.

They have been able to implement powerful data analytics due to the cloud computing

power that is brought about by new and better technologies. AI provides a new

perspective to BI, which is enabling them to focus on improving supply chain.

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All software used by Hirdaramani is cloud based and mobile ready. Integrated analytics

has been incorporated, because of which all data collected goes to data mine in the

cloud where it is analysed.

The company had 20 years’ worth of data which was analysed to find which type of

product, customer had what type of trend, which was then used to give insight into

production

They are now moving away from tabular data reports towards visual dashboards, KPIs

etc. which are mobile friendly. The company has heavily invested in integration.

The company has an in-house software called Res.Q which is used for quality

management, development of skill matrix and machine inventory. The Res.Q supervisor

app can be used by supervisors to monitor the production in real time by providing data

on defect rates and rework rates on an hourly basis.

Their shop floor solution is used to predict (productivity, issues, downtime, defect ratios

etc.) using AI. Simulation was used to cut down sampling time by 2/3rd using 3D

sampling techniques.

Chat bots are being developed for HR related purposes. They also intend to use Alexa

in boardrooms for reporting to upper management. Humidity, heat sensors and controls

are planned to be automated to adjust temperature and humidity based on time and

real-time readings. They are also looking at centralized and automated warehouses.

[19]

13
Smart manufacturing technology makes it possible for companies to achieve full supply

chain transparency. By having process visibility, they can now adopt different business

models, improve operational efficiency, and produce in larger volumes. This gives rise

to four major opportunities. [20]

 Mass manufacturing – Improve manufacturing capabilities by utilizing better tools

and monitoring methods, use of big data analytics etc.

 Mass customization – Increased flexibility of operation can make large scale

personalization possible

 Agile manufacturing – Manufacturers can respond better to change in demands,

especially in an industry like the apparel sector, where frequent style

changeovers are commonplace

 Made-to-measure – Individual customizations are possible through the use of

robotics and AI, at a later stage.

14
3.4 Industry 4.0 in India

Global Readiness towards Industry 4.0

India’s rank on the Network Readiness Index in 2013 was 61. In 2016, India ranked 91

out of 139 countries. India was ahead of Pakistan (110) and Bangladesh (112), but

behind Sri Lanka (63), Malaysia (31), and China (59). Singapore topped the rankings for

second year in a row. The US was placed at 5th position.

According to IBEF, the Government of India has set an ambitious target of increasing

the contribution of manufacturing output to 25 percent of Gross Domestic Product

(GDP) by 2025, from 16 percent currently.

IoT, being one of the most important aspects of Industry 4.0 for India, is expected to

capture close to 20 percent share in global IoT market in the next five years. According

to IBEF forecast, the IoT market in India is projected to grow at a CAGR of more than

28 percent during 2015-2020.Government of India has also taken initiatives such as

Green Corridors and ‘Make in India’.

[21]

15
 SMART FACTORY IMPLEMENTATION STATUS
ACROSS GEOGRAPHIES
Yes - we have an ongoing smart factory initiative
Yes - it is currently being formulated (not in operation)
No - but we plan to have a smart factory initiative in the next 3-5 years
No - we are not likely to have a smart factory initiative anytime in the future

GLOBAL AVERAGE 43% 33% 8% 16%

UNITED STATES 54% 24% 11% 10%

GERMANY 46% 30% 8% 15%

FRANCE 44% 36% 3% 17%

UNITED KINGDOM 43% 27% 14% 16%

SWEDEN 39% 31% 12% 18%

ITALY 33% 42% 7% 18%

INDIA 28% 42% 5% 25%

CHINA 25% 53% 1% 21%

Figure 2 Smart factory implementation status across geographies

[8]

The above graph shows a comparison between various companies showing percentage

of industries which have reported smart factory initiatives. It can be seen that 28% of

companies have an ongoing initiative in India, whereas 25% say they are not likely to

have any such initiatives. Of the countries surveyed, India is second last, only beating

China by 3%. Seeing as how 53% of Chinese companies are formulating such

initiatives, the highest percentage of any countries, it is likely to surpass India soon.

Chiplunkar (2017) emphasizes in his study of connected factories in India, that the

requirements for widespread adoption of Industry 4.0 in India, or generally require basic

16
level of mass scale digitization of product processes and power. Investments in data

gathering, analytics, integration and security along with IoT are also essential.

According to the author, research & development must be given further credence.

Meanwhile, the workforce must also be reskilled and upskilled, for making connected

factories a reality. All this cannot be accomplished without conducive government

policies, which will facilitate businesses to take action in this direction. [22]

3.5 Current Initiatives in India

Indian Institute of Science (IISc) is building India’s first smart factory in Bengaluru with a

seed funding from the Boeing Company. [23]

Kumar (2016) reports in Times of India, that data is to be collected through a variety of

sensors in the proposed factory – from the posture of the man welding, or cutting, to the

kind of energy the welding machine is using and what damages it is bearing and when it

needs to be replaced, there is data on everything. [24]

Bosch, a German auto component manufacturer will begin implementation of smart

manufacturing at its 15 centres in India by 2018. [23]

General Electric has invested USD 200 million in the facility in its only multi-modal

factory in India where digitally interlinked supply chains, distribution networks, and

servicing units form part of this intelligent ecosystem. [23] This plant, based in Pune, is

one of GE’s Brilliant Factories.

The advanced manufacturing plant, which is located in Pune, near Mumbai in western

India, covers 67 acres. It will employ 1,500 workers who will share production lines,

17
support infrastructure and equipment like 3D printers and laser inspection technology.

Besides making jet engine and locomotive technology, they will also assemble wind

turbines and build water treatment units for the oil and gas and agriculture industries.

[25]

Plants operated by Godrej and Welspun use the Intelligent Plant Framework provided

by Covacis Technologies to run their factory floors. The Framework connects every

machine node in a factory and understands the rate of work and efficiency. The aim of

the framework is to let the corporate cut down on wastage and organise production

flows. [26]

In Bengaluru, at Manjushri Technopak’s manufacturing plant, situated in the industrial

suburb of Bidadi, around 20 packaging machines are connected over a network. The

company gets a monthly review about the machines over a dashboard. This way, the

company saves on maintenance. [26]

At Mahindra & Mahindra’s Nashik plant, there are robots building car body frames and a

similar scene plays out in Pune at the Tata Motors plant. According to Rout (2017) from

Capgemini, most large OEMs from the automobile industry in India have 40% of plant

work done using robotics. Over the course of the decade, they will move to 70% to be

globally competitive. [27]

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3.6 Industry 4.0 in Indian Apparel Sector

The Indian apparel industry is suitable for the implementation of Industry 4.0 as it has a

strong IT base as well as several large manufacturing units with their eyes on

digitalization and technological upgradation.

The government of India is also taking many relevant steps to ensure that the India

textile & apparel industry will be able to grow by 2025. It is also supporting digitalization

and adoption of Industry 4.0 in the industrial scenario.

“Incentives under the Scheme of Hire-Purchase and TUFS in specific segments should

be made available only on machines made in India after period of 3 years. “

This means that only purchase of machines made in India will be eligible for the TUFS

scheme (for certain segments), which will promote indegenous manufacture of

machines. It will also promote innovation of new technology in India, which is vital for

the introduction of I4.0 in India.

“Import of second hand machinery should not be eligible for benefits under TUFS.”

This will further promote innovation in India as demand for new technology will increase.

In order to help individual enterprises achieve zero defect production and improve

productivity levels, the textile sector should be covered by a Ministry of Textiles run

National Manufacturing Competitiveness Programme which is currently being run by the

Ministry of Small and Medium Enterprises for all SMEs. The key elements of NMCP are

Lean Manufacturing, ICT, Technology & Quality Upgradation, Entrepreneurial and

19
Managerial Development, Design Promotion, Quality Management, IPR, Marketing

Assistance, etc.

This will push the industry towards agile and digitalized production, which will further

facilitate I4.0.

“In order to promote R&D at company level, it is recommended that expenses made by

textile and apparel sector companies for contract R&D should get the same tax benefits

as is available for in-house R&D.”

The Ministry should have an R&D Fund which could be used to finance R&D for specific

needs identified by industry. Individual R&D projects should also have some industry

funding which could vary depending on the nature of the project.

All in all, the government has taken notice that this is a growing industry and is keen to

promote technology upgradation in this sector. This is likely to make the transition to

Industry 4.0 easier for the apparel manufacturing companies. [28]

20
3.7 Industry 4.0 & Digitalization Readiness – Self Assessment

A study of various assessments available online was done, as these will be able to

provide an insight into which questions to ask, how to interpret the responses and thus,

what information may be required for one to conclude for sure that a certain company is

ready for Digitalization/ Industry 4.0.

1. Digital Business Self-Assessment – cognizant.com

Here, the questions are categorized under the following heads:

 Strategy and Innovation

 Use of Insights

 Leadership and Culture

 Products and Services

 Systems and Processes

 Customer Touchpoints

The assessment indirectly assesses the level of digital implementation by asking

questions that review the usage of digital data that the company incorporates into its

decision making.

The results show whether you are “Thinking Digital”, “Doing Digital” of “Being Digital” in

each of the above sections.

2. Are You Ready for the Digital-First World? –socialassets.opentext.com

Questions with responses with the following range:

 Strongly Disagree / No Awareness

 Disagree / Little Awareness

 Generally Agree / Awareness

21
  Agree / Plan In Place

 Strongly Agree / Plan In Action

Questions are based around whether certain aspects of digitalization are put to practice

or not, and to what extent. For example, how confident is the test taker that there will be

no cyber security issues?

Overall assessment is quite subjective. Results are shown on a scale that goes from 0-

5, with “Call an expert” at 0, “Review your digital plan” in the middle and “You’re good to

go” at the end.

3. Digital Readiness Assessment – cosco.com

Assesses the readiness on the basis of:

 Foundational infrastructure

 Virtualization technology

 Automation and orchestration

 Self-service IT capabilities

 Service standardization

 IT financial practices

 Cloud capabilities and strategy

 Applications and data environments

 Security policy and practices

 IT operations and skill sets

Scoring is done out of 100.

22
4. Industry 4.0 - Enabling Digital Operations Self Assessment - i40-self-

assessment.pwc.de

This assessment is comprehensive as it takes into account the type of industry, the area

and the annual revenue of the company as well. It contains 33 questions that assess

the level of digitalization as per the following factors:

 Business Models,

 Product & Service Portfolio

 Market & Customer Access

 Value Chains & Processes

 IT Architecture

 Compliance, Legal, Risk, Security & Tax

 Organization & Culture

The result is shown in the form of a spider web that highlights the key strength and

weaknesses of the company with respect to digitalization.

It also declares whether the company is a digital novice, vertical integrator, horizontal

collaborator or a digital champion, along with key areas that make them so. Overall it is

useful for this project as it assesses the whole company for readiness and also gives

tips on how to proceed.

23
3.8 Changes in Job Scenario Due to Industry 4.0

According to a survey conducted by the World Economic Forum in 2016, Mobile internet

& cloud technology (34%) was rated as the top trend that would drive change in terms

of business. This was followed by Computing & Big Data (26%). It was estimated that

the impact of both these technologies would be felt by 2017, as compared to robotics

(9%) and artificial intelligence (7%). It was reported that out of major countries such as

China, Japan, UK & USA, India currently has the highest ease of recruitment. This

number is expected to fall by 2020, though. It is estimated that it will become more

difficult to recruit in India in the coming years. In contrast, Italy is expected to have the

greatest ease of recruitment. [29]

ILO’s report on transformation in ASEAN countries reveals that close to 56% of jobs are

at risk of becoming redundant due to automation. In Cambodia, where garment

production is the largest industry, close to half a million sewing operators are at risk to

lose their jobs. [30] In a study by Frey & Osborne (2013), it was found that sewing

machine operators have a probability of 0.89 of being computerized, ranking 503 out of

702 occupations. First-Line Supervisors of Production and Operating Workers, however,

had a probability of 0.016, ranking 73. [31]

A quarter of people losing their jobs because of automation by 2021 will be from India,

according to research by human resources (HR) solutions firm PeopleStrong. According

to the company’s research, India will make up around 23% of jobs to be lost to

automation globally by 2021.

24
On the other hand, according to IT industry veteran T.V. Mohandas Pai, former human

resources head at Infosys Ltd and chairman of Aarin Capital, concerns over job cuts

stemming from automation are exaggerated. He stated that if India grows at 8% a year,

with a labour productivity increase of 1.5% a year, jobs should grow at a rate of 6.5% a

year. With automation, jobs may grow within a band of 4-5% a year for the next 10

years. [32]

While repetitive tasks such as those performed by sewing operators may be taken over

by machines, it is a matter of reskilling & upskilling the work force to maintain their

relevance. An example given by David Autor, American economist and professor of

economics at the Massachusetts Institute of Technology, in a TED Talk, was of ATM

machines. ATMs, i.e. automated teller machines, had two countervailing effects on bank

teller employment. They replaced a lot of teller tasks, reducing teller jobs by a third. But

banks quickly discovered that it also was cheaper to open new branches, and the

number of bank branches increased by about 40 percent in the same time period. The

net result was more branches and more tellers. But the job profile of these tellers

changed to become more cognitively challenging, forging relationships with customers,

solving problems and introducing them to new products like credit cards, loans and

investments. [33] A similar situation can be imagined for manufacturing related jobs.

Rather than eliminating the need for human workforce, it would be beneficial to

incorporate technology into manufacturing in such a way as to accommodate both

humans and machines, especially in an industry as labour intensive as apparel

production.

25
4. Methodology
This study is a descriptive research. The method of research that is used in this study is

qualitative in nature. Various technologies pertaining to Industry 4.0 have been studied

and the developers of such technologies have been contacted for further detail,

wherever possible. Examples from various other industries have been taken to create

an Industry 4.0 implementation guideline for the apparel industry. Surveys have been

taken from various apparel manufacturers across the country to determine the level of

implementation that currently exists. From these, three cases are taken according to the

size, turnover and current technologies implemented to provide further suggestions on

how to proceed.

The study makes use of secondary data from various sources, both offline and online.

This has been used as a basis for the fundamental idea of Industry 4.0.

Standards for technological advancements will be set according to the garment industry,

on the basis of which benchmarking will be done. Companies will be categorized based

on their level of automation, turnover etc. The study will then further collect data

required to assess the amount of time, resources and effort required for the companies

to implement Industry 4.0.

Primary data has been collected as required relating to cost and availability of I4.0-

ready machines, demand of such machines both within and outside of India, expert

opinions on the topic of “Apparel 4.0” etc. Informal interviews have been conducted to

collect primary data.

26
Survey has been done to assess the knowledge of Industry 4.0 in various companies,

as well as their future plans regarding the same. This was done to provide an insight

into the readiness of the Indian apparel industry. The survey was presented in the form

of an online questionnaire.

The companies surveyed have been taken to be a mix of domestic and export-oriented

manufacturers. Also, they have been surveyed on the basis of the size of the company.

From the data collected, an analysis has been done to find out the financial implications

of adopting I4.0 in the apparel industry as well as the willingness of companies to do so

on the basis of their target customers (domestic & export) as well as their company size

& current level of automation.

27
5. Overview of Implementation Plan
Industrial production is nowadays driven by global competition and the need for fast

adaptation of production to the ever-changing market requests. This is especially true

for the volatile market to which the apparel industry caters. Such requirements of the

market can be met only by radical improvements and improvements in the current

manufacturing technology. Industry 4.0 is a new, promising approach based on the

integration of business and manufacturing processes, as well as integration of all the

key players in the company’s value chain, such as suppliers and customers.

The implementation of Industry 4.0 is still in its nascent stage, not only in the apparel

industry but in all industries in general. It is a new and novel concept, with certain

organizations spearheading the implementation as pioneers. A few manufacturers have

successfully implemented Industry 4.0 in their companies in some form. One of these

companies is SunPower, which used a 5-step process to turn one of their facilities into a

smart factory. The results included a 10% reduction in cost, 40% reduction in direct

labour and 40% improvement in throughput. [34] The SunPower case study utilizes

a step-by-step plan which builds up the level of technology in the manufacturing facility

while eliminating bottlenecks and thus facilitating the implementation of the next step.

The needs of the apparel industry differ from those of other industries, mainly because

the apparel industry has very frequent style changeovers, which, at times, can be very

drastic. Also, the production of apparels requires handling of fabric, which is difficult to

manage using robotic appendages. It is necessary to create a solutions that will work

with all these differences and be able to reduce throughput times.

28
Derived from the case study of SunPower and other such companies, the

implementation plan discussed in this report has 5 main phases which have been

tailored according to the main needs of the apparel production industry. Each phase is

expected to facilitate the implementation of the next by improving the production

efficiency, reducing quality issues and thus increasing revenue. While the needs of each

individual organisation will be different, this plan is expected to benefit those who are

looking for a guideline to be in the implementation of Industry 4.0.

While this is a basic implementation plan based on individual study, it should be noted

that each company can interpret it as per their own requirements and make

amendments as and where deemed fit. The aim of this plan is to provide a fundamental

framework upon which companies can build their own models for smart factories.

29
 Internal Data Storage & Collection (Isolated Systems

MES PLM ERP

Systems Integration & Communication

Integration of MES, ERP

Automation & PLC Integration

Robotics

Big Data, AI
Machine Learning Robotic Process Automation

Figure 3 5 Phase Implementation Plan

30
Implementation Guidelines
Phase 1: Internal Data Collection and Storage
(Isolated Systems)
Important data is continuously generated in an apparel production unit. This includes

efficiency of each operator, the number of pieces produced per hour or per shift, the

number of defects in a particular style from a particular line, and so on. The first step

towards a smart factory is to make data easy to store and retrieve. This also means that

data is to be collected with more accuracy and more frequently. This is done so that

there are enough metrics being collected consistently to be able to regularly highlight

the performance of each unit in the production process (i.e. each worker) rather than an

entire collection of units (i.e. a line, or the plant as a whole).

Data collection is currently done manually, and stored either in a hard document form,

or fed into a digital system. Because manual data collection cannot be done too

frequently (in the range of once per minute) the data does not give one a complete

image of the production floor. Data for key performance indices such as OEE,

productivity and efficiency are collected at certain intervals, and do not facilitate real

time monitoring of the floor.

To elaborate, the current data collection methods are too infrequent to provide an output

that would give enough information for one to make any sort of correlations. For

example, a data sample given with enough information may show that the productivity

of operators decreases significantly fifteen minutes prior to the lunch timing. Of course,

31
this is a hypothetical case, but with data that is sufficient to create such connections, the

management may be able to identify and rectify issues that were previously unknown.

This requirement of collecting and storing data is met by a Manufacturing Execution

System (MES). As the name suggests, the application of MES is in the manufacturing

section, where it collects information about work orders that are being executed.

Information on their relevance to manufacturing, their benefits and other such details

are readily available for companies to understand the application better. This will also

help them make a more informed choice when looking for such systems. Also, this

system can be used in conjunction with RFIDs to keep track of each piece in the

production line.

To begin the setup of a smart factory, it is essential to reduce paper trails to a minimum

and digitize as much of information and transactions as possible. For this, a suitable

ERP system is required to act as the bridge between multiple processes. The ERP is

essential to keep track of all the orders. It will also be used to generate work orders for

the MES, as will be explained later. Companies can select an ERP based on their

specific needs and requirements.

A Product Lifecycle Management System can be used to maintain Bill of Materials

(BOM) and keep track of Stock Keeping Units (SKUs). Again, the diversity of operations

the PLM must perform depends on the needs of the company. For example, a company

that has an in-house brand will require a PLM that can handle not only the

manufacturing, but also the retail aspect of the process. However, a company that only

deals with production will not require all these functionalities.

32
Lastly, a Statistical Process Control should be installed to track the data being collected

by the MES. This ensures that data is not just stored, but retrieved and analysed. SPC

creates control charts and other visual representations that make it easier for

supervisors, floor managers and upper management to identify problem areas and

make relevant decisions.

MES SPC
(Production Data capture, reporting on KPIs) (Statistical Process Control)

SKU, BOM, Work

Order Details

ERP Web Applications

(Work Order Management, Shipping, Costing etc.) (For other purposes)

PLM
(SKUs, BOMs)

Figure 4: Flowchart depicting data flow and connections between various systems

33
Other requirements of the company can be met by web-based applications (applications

that run in web browsers) that consist of basic data collection & retrieval, such as

attendance. SKUs and BOMs are created and maintained in the PLM tool. From this

tool, they are published to the ERP system. The ERP then sends this information to the

Shopfloor Execution System (MES).

Here, work orders are created in ERP and published to MES. While these orders are

executed in the MES, the transaction details do not go back to the ERP.

The SPC system supports generation of charts, Control Limits etc.

Web apps can be used to take care of specific tasks, such as collecting quality related

data, HR related actions (Attendance, Skill Matrix etc.)

It is advisable to begin the adoption of lean and agile practices as found suitable to

facilitate the implementation. Basic practices such as 5S (or even 7S), Kaizen, etc. will

not only improve the flow of the production, but also increase flexibility in dealing with

orders of varied sizes and styles. Companies may also change the layout of lines,

shifting towards more modular setups that would be more efficient.

Installing a proper security system on the company’s intranet should also be

considered.

Benefits:
 Improve data collection accuracy & frequency

 Implement predictive and preventive maintenance

 Just-in-time capabilities

34
  Consistent and accurate metrics show which areas are performing well. It also

brings into light the areas that are lagging behind, which can be rectified on

further inspection.

 Increased productivity

 Identification of bottlenecks

 Improve the usage of machinery and manpower

 Create a skill matrix over time which will help in planning and control down the

road

 Better control over work in progress (WIP)

Limitations:
Until this point, the ERP and the MES system function independently of one another.

Some financial investment will be required

Choosing suitable software as per the company’s needs will require effort and study on

the management’s part.

MES have not yet been widely implemented in the apparel production sector, thus may

require some trial and errors.

This implementation will require overhauling the current systems and implementing new

ones, which may prove to create some hindrance for the production data collection

during the installation period

New systems will require getting used to, and users will have to be given proper training

before the systems can be operated.

35
MES
Implementation guidelines for MES [35] [36] [37] :

It is vital to collect a variety of essential data is it improves the visibility of the

organisation. This data enables the identification of bottlenecks in the production

process that were hereto unknown. It also enables the management to make more

informed decisions for improving the productivity of the manufacturing process.

1. Define & agree to a business scope

Establishing and agreeing to business scope is a standard part of a successful

MES/MOM technique. Be that as it may, it's fundamental: it's the basis for every later

activity and a measure of an effective implementation.

In fact, as indicated by a Gartner study, the most compelling reason why MES

deployments have a reputation for being challenging is the absence of clearness around

the first choice and plan. The technology itself isn't the issue, it's the absence of

understanding in stakeholders with regards to the advantages.

According to Gartner analysts, an improper understanding of cost, ROI, and business

case justification is the biggest obstruction to achieving value. It contributes toward and

creates roadblocks in the form of competition with other IT projects and resourcing

issues.

At the end of the day, when leaders don't comprehend the advantages that will

accumulate, sought-after resources get appointed to other initiatives. The MES

36
implementation loses momentum, progress slows down or stops altogether, and odds of

success decrease.

To define a business scope, one must first establish a team that represents all the

departments that will be impacted and ensure that all persons in this team are well

aware of their roles as well as the technology. The current state of the company must

be defined to serve as the reference point, and then the nature and scope of the project

must be discussed in relation to this reference.

2. Assessing MES Readiness

Experience shows that knowing where one is presently is basic to getting to where one

needs to go. Ambiguous, off base, or inaccurate evaluations of current levels will surely

disrupt plans to progress.

This assessment should take into consideration the availability of individual units to add

to and advantage from MES, in light of their business targets and drivers. By accurately

defining cost-benefits, the consistent adoption of MES across the organization can be

guaranteed.

The assessment should be made from the perspective of the business, the users of the

technology, the business processes and the technology along with its implications itself.

3. Identify weak points and improvement areas

This step involves the scrutiny of current processes, revealing issues about waste,

performance, inefficiency, and consistency.

37
Every business does things differently. The focus is on mapping the business’

processes and thereby identifying opportunities. Part of this means breaking down

business functions into efficient models. Using technical assessments and Key

Performance Indicators (KPIs) one should define what drives the business, how the

company measures up against the competitors, and/or how it compares with industry

best practices.

For this, it is necessary to:

 study plant operations

 identify constraints

 identify improvement opportunities

 discover applicable best practices

 identify potential new requirements

As a result, one will:

 gain understanding of the current and desired manufacturing workflow

 identify what departments and functions would interact with an MES system

 survey physical and logical status of the systems identified

 compare key performance metrics with industry peers.

4. Assess MES Requirements

Now, a selection matrix should be built. This will be based on what the business needs

from the MES. These will vary from company to company. This matrix will contain

several generic items (monitoring WIP, data collection, scheduling etc.), whereas some

38
will be specialized. Once this list is made, the list items should be ranked on the basis of

impact.

This matrix will be useful when selecting a solution provider. The selection should be

made on the basis of which shortlisted solutions best meet the prioritized requirements,

and which solution best addresses the gap between the current operations and the

intended operating scenario.

MES in the apparel sector may or may not require additional hardware, such as digital

panels, as per the manufacturing requirements. Financial aspects should be

considered.

5. Create a vision and roadmap

The operations situation should be documented, using industry-supported standards to

define the architecture, based on implemented solutions for the issues that have been

prioritized.

To guide the company from the as-is situation to the to-be situation, a roadmap is

essential. This roadmap is a future state vision for the plant as well as the enterprise

systems.

As part of this, prioritizing is required. Where is the low hanging fruit? What will the

company gain from each opportunity? From these, the business justification can be

created based on Return on Investment (ROI) estimates and the process efficiency

gains that arise from better use of information.

39
In scenarios like the apparel industry, where technologies have not been implemented

widely to take reference from, it is better to start with phased-delivery initiatives – ones

that pick off high-potential projects one-by-one. These are far more likely to lead to

success than all-or-nothing ventures that have more risk and investment involved. One

big reason is culture: as each project demonstrates success, it will create more and

more believers in the technology, making the next hurdle that much easier to leap while

keeping the end goal in sight.

6. Build measurable ROI justification

In the previous steps, preference was given to projects that would most likely pay off

quickly and build internal acceptance. Now, it is time to quantify in detail, i.e. building a

measureable justification with actual ROI values to choose an appropriate starting point.

7. Phased Implementation for MES

Select an initial phase.

The idea here is to select a single function that delivers the greatest ROI. Since this is

an initial phase, it is best to select a single line to roll out the software. This way the

MES can be tested and adjustments can be made to it before rolling it out to other

areas.

It is practical to start small, rather than with an all-out implementation across the entire

unit, by using only a few functionalities at first (e.g. the scheduling and data collection).

This makes the step manageable in case there are any issues. Also, if the software is

rolled out to users who are ready and willing, it will be easier to convince those who are

reluctant in the course of time.

40
Migrate the planning.

Before starting the project, the company should migrate the existing planning and

processes to the system. Some companies wait to start the project until they “fix” their

planning. The problem is, the planning is much easier to fix through the migration (using

a data migration engine) or once it is in the system. For most companies, improving the

planning is one of the first, and easiest, benefits of an MES, and attempting

“improvements” using old methods is wasted effort.

Prepare and configure the system.

At this point, the company should be almost ready for the first phase of the project. If

necessary, the software should be configured. Most systems have settings for each

industry or type of manufacturing. The data collections systems should be set up, if they

are to be used, and the schedules prepared in the software.

If the company already has an existing ERP or PLM, it can be integrated with the MES

at this point itself. This can also be done at a later stage.

Users of the system should also be provided with relevant training by this point, so that

there is no confusion as to how to operate the system. This should be done in advance,

since now the system is ready to be deployed.

Initiate the first phase

Test runs can be conducted at this stage for a certain number of days to find problems

before going live. Since the scope of the project has been kept small, it is easier to

manage any issues that may occur. The first few days may be slow, with users having

41
more and more question. But soon they will pick up the pace as the non-value added

processes become automated.

Measure and select the next phase

The next step now is to schedule for the next phase of implementation. Since a list of

prioritized projects has already been prepared, it is easier to make a selection based on

the experience gained from the implementation of the first phase. Adjustments can be

made accordingly.

Subsequent phases will be easier to implement. The software need not be configured

again; the data has been migrated so it is a matter of applying the functionalities as and

where required. New users who may have been reluctant earlier, will be more willing

after seeing the system in place. The same steps can be used again for the subsequent

phases.

42
ERP
Implementation of ERP [38] [39] [40] :

Enterprise resource planning software is a multi-module management application that

can be used by manufacturers or other businesses to integrate multiple facets of an

operation including product planning, development, manufacturing etc. into a single

database and user interface.

It serves to automate various office functions related to technology services and human

resources. Some of the most common ERP modules include inventory control,

distribution, supply chain management, planning, and accounting.

ERP helps reduce duplicate work and automates operational tasks, making information

easy to retrieve as and when required.

ERP software can also be customized according to the requirements of the user.

Screens can be remodelled, fields can be edited and the architecture can be modified

through progressive installation processes in advanced ERP software.

ERP is one of the software that has been implemented in the apparel industry. It has

become more popular because of its ability to be customized, easy to use interface and

a wide range of application.

It is fundamental to have a correct implementation of ERP for its optimal utilisation. For

this, it is imperative to define a proper Action Plan before deploying the software.

Following are the steps that can be suggested to make the implementation of ERP

effective and hassle free.

43
1. Identify the problem and set the objective
ERP is a versatile tool that addresses many issues that are faced by companies.

However, every organisation has different priorities and thus it is crucial to identify the

main objectives of implementing an ERP system. There may be more than one

objective, but these should be defined in the order of impact and importance to the

organisation. It is necessary not only to consider the present implications of the software

but also future applications. This allows for the business to factor in the scalability of the

software and to better accommodate changes in the industry in the future.

2. Define the scope and create an implementation team

According to a study done by Panorama, 61.1 percent of ERP implementation take

longer than scheduled and approximately 74.1 percent of such projects exceed budget.

One of the major causes of the over budgeting and delays is the unclear definition of the

requirement of the organisation. To avoid this ERP features should be evaluated

according to the needs of the company. Depending upon the budget and the prioritised

requirements, an unambiguous list of specifications required in the ERP should be

made before hand.

A team should be assembled that understand the core requirement of the organisation

as well as the resources available to better plan this implementation.

3. Brainstorm & evaluate options

According to Capterra, approximately 33% of ERP buyers did not demo the product

before buying it and approximately 22% of company surveys reported that they bought

the first system they looked that.

44
While such implementations may prove to be satisfactory for some organizations, it

cannot be denied that for the selection of an ERP system that is the best for the

organisation, the management has to invest some time in evaluating multiple options.

The apparel industry is very versatile and every manufacturing company has its own

needs according to the products it manufactures, its buyers, the departments that it has,

(for example, an in-house brand). While one ERP works for one organization, it cannot

be said that it will do the same for another. In this manner, the company can select the

ERP that best fulfils all of its needs.

According to the 2015 ERP report, it was found that 93% of the companies customised

their ERP software to some extent according to their intended uses. While some

customisation is necessary, it could sometimes also lead to an increase in the failure of

the ERP system because it increases the complexities involved. Thus, it is important to

evaluate various ERP options to understand the package configuration and then

estimate the level of customisation required. New additions such as cloud ERP and

SaaS ERP provide different types of flexibility to accommodate the requirements. The

company needs to brainstorm with the ERP vendors or with consultants to select the

best system for the organisation.

4. Data migration
This is the most important step after a suitable ERP solution is selected. Data migration

is simply feeding previous data into the software and creating channels for all future

data to be directed into the ERP. The implementation of an ERP system is a

45
considerable change in the functioning of a company, especially if the software is being

tried for the first time. It is crucial to identify which data is necessary for a successful

transition. Most software allows data input but shifting the entire data of the previous

several years may burden the software. Only data that is necessary for the functioning

of the company's processes should be selected.

5. Evaluate the infrastructure

Preparing the company for the ERP implementation is one of the most crucial steps and

plays a vital role in the process. After a consultation with the vendor, the current

infrastructure should be assessed and all the missing infrastructure required should be

assessed and installed. According to Mint Jutras, 23% of the organizations are unable

to grow their business as quickly as they would like and believe this to be because they

lack the tools they need in their current ERP system.

Infrastructure of the organisation should have the scope of scalability as well as options

to update as required.

6. Customisation
While most ERPs are versatile enough to meet most of the requirements of any

organisation, sometimes there may be a need to customise some functionalities

according to the industry's specific needs. It is necessary to keep in mind to not

customise every functionality in the ERP according to the working of the company, but

also modify some processes of the organization to better align with the software.

Management can evaluate the use of the system during the pilot testing and then

decide to include or remove certain customizations based on this evaluation.

46
7. Change management
Implementation of an ERP system is a major change for the organisation. Employees

may be accustomed to a certain routine and specific methods of doing their work. Major

changes may not be easily accepted especially when it is something as influential as an

ERP, which impacts several levels within the company. An ERP would change the

working style and the environment of the company for the better for not only one or two

operations, but for most of them. It is the management role to involve the employees

and prepare them for the upcoming change to create an accepting environment.

Employee should be educated about the benefits of using the system, updated on

related development and should be free to resolve any queries that they have. It is

important to have open and positive communication to provide optimal results.

Therefore, care must be taken to ensure a smooth, yet successful transition by building

employee consensus and confidence.

8. Training & Knowledge Transfer

Ill-trained personal operating of reading data into the solution will waste both time and

resources of the organisation. Such a situation is easily avoidable by providing proper

training to those who will be using the system. This ensures that there will be fewer

issues and effective usage, especially when the system is implemented for the very first

time. The company's management must ensure that the in-house IT support staff has all

the proper vendor detailing and technical know-how related to the software. This

ensures that if there is any issue during the running of the system, the IT team as

enough knowledge to troubleshoot it without wasting time in contacting the software

provider for the solution.

47
9. Project Testing
According to a Panorama Research study, 40% of ERP implementations cause major

operational disruptions after go-live. To avoid such situations, it is advisable to test the

software and implemented in a proper manner. My testing the system before going live,

the organisation can ensure the best implementation and reduce chances for avoidable

issues to crop up.

10. Go live & ongoing support

What's the ERP solution is properly checked and implemented it is time to go live. A

company may perform one final functionality test, as a safety precaution. The

implementation of an ERP is not a one-time event. It is a continuous process. The

company should keep continuous tabs on the system to avoid any issues and keep on

improving the use of the system. Regular software updates from the vendor's side are

also one of the requirements, upon the completion of the implementation process.

Maintenance must also be periodically performed on the system as an aspect of

ongoing support. This helps ensure a smooth, functioning solution.

48
PLM
Implementation of PLM [41] :

At its core, PLM is a tool that manages the lifecycle of a product: from conception to

development to its dissemination. PLM software has a long history with varied uses, but

it has been acting as the backbone of the fashion, apparel, footwear, accessory, and

uniform industries, and will continue to see innovation for years to come.

1. Determine Company Goals

“Let’s buy the software and see what it does for us,” is not the right approach to PLM. In

order for PLM to truly serve a business, it is important to determine precise goals and

understand what the company wants the PLM system to accomplish for the business in

the immediate and near future. Below are some sample stages a fashion business can

find itself in. The company may be at one, or a combination, of them.

 The company is growing, and so are the workflows, partner companies, client

portfolios, and designs, which are overwhelming the organization. In this

situation, PLM is needed. A business is better positioned to scale using PLM

software by acting as a central repository of data that can be shared and

dynamically managed throughout an enterprise.

 If the fashion business is looking to enter or expand in an international market,

then PLM is needed to support global collaboration through access to design

information, and support international manufacturing that can be monitored from

any location in real-time.

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  If reputation-fostering is the goal, then PLM can be utilized to smooth out

operations and validate data, meet environmental and health regulations, as well

as enforce safety requirements — all things that lead to quality assurance and

good standing within the industry.

2. Assemble a PLM Implementation Team

One of the most important decisions an executive or senior management member must

make is selecting the right PLM implementation team.

 A project manager that will develop the project and maintain timelines and

budget. Select this manager based on their experience, not necessarily on their

job title.

 An IT manager who will liaison between the company and the PLM software

vendor during the implementation, as well as oversee PLM implementation

progress at the micro level.

 An end-user team composed of designers, accountants and warehouse

personnel to fully use and adequately test the new software and its features.

They will be able to give invaluable input on digital assets, garment parameters,

colour data, and more, to fully utilize the software to best serve the company.

3. Introduce Change Management

Even though a PLM implementation can significantly reduce the workload of employees,

it is essential to allow them to gain insights on trends, and facilitate their collaboration,

as this type of change is generally unwelcomed. An often overlooked step, change

50
management, is actually the most important aspect to address when it comes to a large

organizational change, like a PLM software implementation.

 One of the quickest ways to ensure PLM implementation failure is to have an

unsupportive work culture, which can result in resistance. Part of change

management is clearly illustrating a strong vision for the team. Investing time into

defining the purposes of the new PLM software and engaging employees at

every step will lead to success.

 With the help of HR, for instance, make sure that the end goal of the PLM

software implementation is effectively communicated to employees from all walks

of life. Considering how demographics, skill levels, and personalities will play a

factor in accepting new business operations will shape your communication and

training strategies.

 Appraising, and praising when warranted, the performances of employees during

the implementation process validates the value of their work, cements their role

in a company undergoing change, and creates overall satisfaction with the PLM

implementation process.

4. Choose the Right PLM Software Vendor

Selecting a PLM software vendor will undoubtedly require a lot of the investor’s time

and energy. But it is for good reason. PLM software is not a minor endeavour, and

because the software system will stay with a company for many years, so too will the

vendor.

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  Avoid unnecessary convolution, and costly errors due to PLM customization.

Ideally, a fashion PLM software vendor will be specialized in the apparel,

footwear, accessories, and uniform industries and will have the resources to

sustain a long-lasting relationship with the company.

 Accurately assess the vendor’s experience and reputation. An excellent way to

measure a vendor’s compatibility with the company is with RFIs and

demonstrations. An experienced PLM software vendor will not only be ready to

answer hundreds of questions and walk the team through a PLM demo, their

answers will also likely demonstrate excellent knowledge of the kind of products

or services your company provides.

 Keep an eye out for the future. Select a vendor that’s frequently updating,

improving, and offering new integrations to its PLM software. Always optimizing

your PLM software allows your company to keep up to date with fashion’s

changing market, its needs, and latest technologies.

5. Configure PLM Software

Configuration is not the same as customization. PLM software developed for the

automotive industry, then customized to serve a fashion business is prone to manifest

gross errors because designing an engine part is not akin to colour, shapes, trims, or

fabric management. An out-of-the-box PLM software solution, developed for garment

design and manufacturing will only need configurations in order to conform perfectly to a

fashion business, saving valuable time and extra expenses.

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  The integration of Digital Asset Management (DAM) enables advanced asset

search (images, techpacks, materials, etc.), organization, processing, and

controls that streamlines communication and collaboration among your internal

team and supply chain partners.

 Business operations can be conducted on-the-go using PLM software. Fashion

suppliers and retailers have the option to connect to PLM on a smartphone to

upload images obtained in real-time (at a fashion show, for example),

communicate with designers, and maintain workflows.

 If the company has an existing ERP system, or is considering implementing one,

the PLM software vendor should be able to integrate them and push information

to ERP, creating a symbiotic relationship between the two software. Other

configurations can include the additions Business Intelligence, and Document

Management. These tools are instrumental in tracking fashion trends, forecasting

sales, and appraising performance.

6. Training Plan
A well-developed training plan is instrumental in maintaining the PLM software’s

implementation timeline and ensuring its success.

 Strategic timing is key. If training happens too early on in the implementation

process, end-users will have forgotten everything. If it happens very late, then

PLM adoption will be delayed. The PLM vendor should be able to advise you on

the optimal training time for maximized retention.

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  Not all learners are equal. While a classroom method is an effective way to train,

diversified training approaches like video tutorials, literature and demonstrations,

makes way for better information retention by a varied group of users.

 Additionally, one of the most effective ways to learn is by doing. As end users

become involved in cleansing and legacy data migration to the new software,

tasking them with developing common use cases for PLM will cement procedure

instructions acquired during training.

7. Test the Software and Go Live

PLM software is an intricate, yet flexible system. In order to bend and shape PLM to the

company’s needs, a series of highly methodical tests need to be run in order to take

advantage of the software’s versatility.

 The use cases created should be used to thoroughly test the PLM software’s

readiness. These scenarios confirm that PLM supports operations in every

aspect of the PLM cycle, meeting goals without error or delay.

 During simulations, both static and dynamic data should be used and tested at

each turn. This ensures that not only permanent information such as buyers and

designs are adequately migrated, but changing information like cost cards,

BoMs, and line plans are functional, too.

 Simulations will become more sophisticated with each and every test run and the

implementation team needs to be prepared to make adjustments after every

round. When the company is confident about the quality of the master data

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 migrated and that the implemented PLM software system is fully ready to perform

the entire lifecycle, you are ready to go live.

8. Measure Success
A straightforward way to measure a PLM software’s implementation success is with Key

Performance Indicators (KPIs). Measuring success is both a natural and necessary step

for any business that has undergone an operational transformation in order to better

understand the path the business is headed on.

 Use KPIs to concretely determine profit by how much the PLM software

accelerates the design-to-product cycle, reduces time-to-market, whilst cutting

costs as a result of reducing waste.

 In order to calculate return-on-investment (ROI), calculate the total initial

investment the company has made into the PLM software purchase, training, and

costs involved to achieve IT infrastructure readiness. ROI is determined by

dividing profit by the initial PLM investment.

 PLM software holistically brings together research and development;

manufacturing and assembly; the supply chain; sales and finance. While

transformational changes are difficult to enumerate, PLM software

implementation nevertheless has a powerful, discernible effect on every member

of the organizational chain. There are no right or wrong ways to measure such

effects of PLM, but this detailed list can help define these effects.

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Estimated PLM benefits:
 Time-to-manufacturing: 10% to 50% reduction

 Engineering change process: 10% to 70% reduction

 Design review process: 50% to 80% reduction

 Increased productivity: 10% to 20% increase

 Product development costs: 25% to 40% reduction

 New part numbers: 5% to 15% reduction

 Time to find information: 75% to 90% reduction

 Design errors: 10% to 25% reduction

 Time-to-design: 15% to 70% reduction

 Travel cost for design: 20% to 35% reduction

[42]

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Phase 2: Systems Integration & Communication [43] [44]
[45] [46]
Manufacturers may also want to look into integrating various systems such as ERP and

PLM with the MES, especially if they already are using any of these tools, or plan to

implement them from scratch alongside the MES.

According to a recent study from BearingPoint, correctly deployed MES will become a

strategic necessity for manufacturers that are on the path to Amol digital future. 88% of

the company surveys said that they expect MES to become more and more important

almost 75% of these companies plan to invest in the technology in the near future. This

study suggests that the emerging popularity of the MES is due to their ability to bridge

ERP systems and manufacturing, as well as machine controls.

ERPs contain information regarding inventory and customer demand, whereas is MES

control the manufacturing of the product. Integrating these two systems will increase

operational efficiency and enable organisations to become more flexible and responsive

towards change in demands. Also exchange of real-time information between the

business division and the production division could also help increase overall equipment

efficiency, reduce cycle times and provide management with greater visibility for

improve decision making.

Integrating ERP with MES not only offers guidance for how all resources (for example,

people, materials, machines) should be used but also helps track how those resources

are actually used so that manufacturers can look at historical data to determine the best

method for manufacturing. These data can also provide insight into machine health and

assist in realistic scheduling for jobs and resources.

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The combination of ERP and MES offers more detailed supply chain information, both

for materials and for final products, that gives manufacturers a more complete picture of

where products and materials are in the manufacturing process at all times. This

information can in turn improve materials forecasting, distribution and logistics, and

other aspects of the manufacturing pipeline.

MES and ERP come together in many other areas, as well, including traceability,

machine integration, and job scheduling. Anywhere the systems overlap, the data can

be combined to create a wider, more holistic view of the manufacturing process, giving

the organization more control over its manufacturing processes.

In the case of MES and PLM, Connecting MES with the system that handles the product

lifecycle from design through retirement boosts quality and helps ensure the

manufacturer can efficiently execute new product designs. When designers using PLM

can easily view production issues associated with a particular product line from MES,

they can make sure the next generation of product avoids the problem.

MES-PLM integration can yield faster product ramp-up times and a better feedback loop

between design and production. "Manufacturers can accelerate new product

introduction, increase quality, speed up handoffs and close the feedback loop on how

the process is performing so there is alignment between the virtual design and the

physical production

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The connection also ensures that business records match what actually occurred within

production without manual intervention.

MES SPC
(Production Data capture, reporting on KPIs) (Statistical Process Control)

SKU, BOM, Work Order

Details flow both ways

ERP Web Applications

(Work Order Management, Shipping, Costing etc.) (For other purposes)

PLM
(SKUs, BOMs)

Figure 5 Data flow after integration

Steps for Integration:

1. Evaluate the use of ERP in the company
Many manufacturers implement ERP with the goal of increasing cost savings. Now,

ERP plays a pivotal role in promoting business growth. This is done by sharing data

quickly and effectively across the business and facilitating cross-departmental co-

operation.

Now, ERP systems offer comprehensive collaboration capabilities. New, compact

devices such as mobile phones can also access the ERP’s data and use visual

59
analytics to simplify the decision making process. ERP makes it easier for

manufacturers to adapt to changing customer requirements, thus aiding business

development.

The company should evaluate what the ERP is currently being used for, and what is

expected to be achieved from it before starting the integration.

2. Develop a business case for the ERP-MES integration

Before integrating the two systems, it is important to know what business benefits can

be derived from it. Manufacturing companies that integrate their AP with MES will be

able to obtain a Holistic view of their business processes. The production data can be

used for better operational control, paving the way for maximizing the efficiency of

production. This also means precise scheduling, planning, procurement, cost

accounting and real-time monitoring.

The organisation will also be able to get business intelligence as a result of the close

networking and instantaneous feedback between the ERP and MES. Accurate reports

and consistent bi-directional data can provide the company with accurate metrics on

delivery dates, as well as labour, material and machinery use.

This is especially important for an apparel manufacturing industry because of the

frequent changeovers and the significant number of varieties of styles being produced.

Paper industry requires the most amount of flexibility due to the fact that each and every

style requires different processing methods (different patterns, methods of sewing,

dyeing, etc.).

3. Encourage a cultural change

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Before putting resources into MES and ERP systems, manufacturing organizations

need to define their goals for integrating the two systems, which may have been

completely separate entities. One of the obstacles in this process is the way that the two

frameworks may have already been owned and operated by various divisions - MES by

administration and ERP by the IT and finance department.

It is therefore critical that all parties involved work together for the integration, in order to

understand the opportunities, objectives and results. A social change inside the

organization is often fundamental for this sort of coordinated effort to take place.

Benefit: Cross communication, growing amount of data to improve processes

Integration platforms help ensure a free flow of information to achieve leaner, more

efficient and effective manufacturing. The ERP provides the MES with work orders.

When these are completed, this feedback is sent back to the MES and the work order is

closed. Quality control data is also stored in digital systems.

Concurrently, the company can choose to implement an integrated MES and ERP at the

very beginning, rather than integrating the two later. This is possible in companies that

do not have either of these installed. In companies where some form of either system is

in use, one can either uninstall the current ERP and then employ an integrated system,

or implement the system that is not present and then integrate them. The choice should

be made by considering:

 Ease of integrations/ changeovers

 Financial aspects

 Time taken to implement and integrate the system

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Phase 3: Automation & PLC Integration
The objective of this phase is to introduce Programmable Logic Controllers (PLCs) to

the existing equipment on the shop floor to collect detailed production data, such as

defect rate, no. of stitches etc. to create a better visualization of the production

processes.

Most programmable machines from machine manufacturers such as Juki and Brother

have PLCs already integrated in the equipment. With the right software and

infrastructure, these machines can be set up to provide real-time monitoring data to the

management through IoT and cloud computing. Automation such as autospreaders,

autocutters, overhead rail conveyors etc. may be introduced in this phase.

 Integrate with previously implemented systems to enable data collection

 Introduction of automation in the production process

 Equipment should be acquired keeping in mind the layout of the

manufacturing unit, lighting etc.

 Training must be provided to the operators

 Maintenance and technical support should be available, maintenance staff

should be trained

 Pilot phase should be run and tested before main implementation

 Line layouts can be modified to better accommodate equipment. New types of

layouts, such as modular lines, can be introduced based on the production

output of the automation

 Automation includes autocutters and autospreaders, autosewing machines,

ironing equipment etc.

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  Automatic Guided Vehicles for warehousing and storage

 Overhead rail conveyors for storage of finished garments

1. Identify opportunities to automate

It is necessary to estimate to what extent the process lend itself to automation. By their

very nature, some processes are more adaptable and open to automation than others.

In the example of an apparel industry, it is more feasible to automate warehousing than

stitching.

2. Validate the opportunity

Check how adaptable the process is to being automated. If one looks at most

processes, it can be noticed that they typically comprise both transaction and decision-

making parts. Automation can be designed to achieve some quick wins on the

transactional part which is the more time-consuming repetitive task. First priority should

be given to tasks that are dull, demanding or dangerous in nature.

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3. Select a Design Model
Select the best model for your requirement. Redesigning the process may be required

to maximize the scope for automation. In some cases this yields additional benefits. It is

imperative to design the automation plan that suits the business structure. It may be

required to customize the automation model to suit the process needs.

Also, there is the need to consider the plant layout and area available to set up the new

machines, among other factors such as electricity outlets, space to store spare parts,

maintenance area, technician (maintenance) to be trained, human resource training,

lighting, and other specialized requirements.

4. Develop the automation plan

It is important to deep dive into the process and identify all exception scenarios. In some

processes, it is best to automate the time consuming part of the process and then build

additional incremental automation. It is advised to develop the automation

implementation process in phases, keeping in mind all level 3 exception scenarios.

Often, it may not be prudent to automate all scenarios, and it is best to try and automate

over 75% of the scenarios and let the experts handle the exceptions. One should

observe how the plan works and performs in each phase and then start on the next

phase.

5. Deploy the pilot phase

When one develops an automation plan and is ready to implement it, one should run a

pilot project first. This allows one to observe the effectiveness and overall performance

of your automation plan with an actual process in real-time. The results of the pilot

project should be taken and improvements made accordingly. One should look at the
64
results of the pilot and then include those scenarios that need to be automated and

those that can remain an exception. It is good to involve the right stakeholders to

understand the long-term plan and then plan the next steps. Sometimes there is a

difference in testing and live environment, and there could be training for roll out.

6. Roll out
Besides development of automation, a plan needs to be built for training and handling

contingency depending on the criticality of the process. It is good to ensure that while

people are trained on the revised process there is also documents on the process

before automation to handle any contingency due to change in applications, systems.

7. Maintain automation activity

This is often an overlooked area. Automation is not always a one-time activity. There

will be changes in the process and systems and there should be a good change

management process to handle any changes. Estimate the impact of change in systems

or process and have a plan ready for this. At this last phase, prepare change

management plan. It is critical to get all stakeholder buy in.

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Phase 4: Higher-level automation & Robotics [47]
 Identifying the Need

 Where to Automate First

 Understanding the True Cost of Ownership

 Who Takes Responsibility

 Where to Go for Help

There are certainly valid reasons one should consider robotics for the right application,

but there are many more reasons one shouldn't consider it for the wrong application. A

robot is no different. It is a tool that, when applied properly, provides a benefit that

outweighs its cost of ownership. Although the price of robotics hardware has come

down, and there have been some new advances in collaborative systems that can lower

the cost of ownership even further, installing and supporting a robotic solution is

too complex, costly, and time consuming to not have a solid business case to do

it.

In that respect, a few reasons were it may make sense use a robotic solution:

The three D's: Dull, Dangerous, or Demanding

The organization should consider using an automated robotic solution if you are

currently employing a person to do a job that is:

Dull
This is your highly repetitive, simple motion type application where there is little-to-no

human judgement required. Many times this is a "Pick and Place" type application, such

as Machine Tending, where an operator is picking parts up off a cart, loading into a

66
machine to have some process performed, waiting for it to finish, taking it out of that

machine, and either putting into another machine or back on another cart. If the

employees' human talents can be used better elsewhere, it may be a good fit for robotic

automation.

Dangerous
Simply put, some manufacturing environments just aren't safe for humans to work

in. Whether the job is dangerous due to environmental concerns or due to injury

potential, the cost of health risks or injuries is a great reason to look at the potential of

using a robot.

Demanding
Terms like Carpal Tunnel, Work Related Injury (WRI), Repetitive Motion Injury, and

Workers Compensation are enough to make an HR Director or Plant Safety Manager

tense up. Unfortunately, these terms are used more than ever - and they are costing

employers big bucks in lost production, insurance, and medical and legal fees. The

good news is many of the stress inducing, repetitive motion jobs can be automated,

thus reducing or eliminating predictable physical injuries.

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Phase 5: Big Data Analytics & Artificial Intelligence
BIG DATA [48]
Advanced analytics refers to the application of statistics and other mathematical tools to

business data in order to assess and improve practices. In manufacturing, operations

managers can use advanced analytics to take a deep dive into historical process data,

identify patterns and relationships among discrete process steps and inputs, and then

optimize the factors that prove to have the greatest effect on yield. Many global

manufacturers in a range of industries and geographies now have an abundance of

real-time shop-floor data and the capability to conduct such sophisticated statistical

assessments. They are taking previously isolated data sets, aggregating them, and

analysing them to reveal important insights. [49]

There are countless ways to incorporate Big Data to improve a company’s operations.

But the hard truth is that there’s no one-size-fits-all approach when it comes to Big Data.

Beyond understanding the company’s infrastructure requirements, the company still

needs to create an implementation plan to understand what each Big Data project will

mean to the organization. At a minimum, that plan should include the following 8 steps.

1. Gain Executive-Level Sponsorship

Big Data projects need to be proposed and fleshed out. They take time to scope, and

without executive sponsorship and a dedicated project team, there’s a good chance

they’ll fail.

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2. Augment Rather Than Re-Build
It is best to start with the existing data warehouse. The challenge is to identify and

prioritize additional data sources and then determine the right hub-and-spoke

technology. At this stage, the company will want to evaluate a few options before

settling on the appropriate technology for the needs of the company.

3. Make Value to the Customer a Priority

Once data sources have been identified and prioritized, they have to be connected to

the needs of a customer. For example, if a certain product is found to be in demand, the

manufacturer would like to forecast the amount of this demand.

4. Run an Agile Shop and Increment over Time

Once priorities and a project team have been established, one should begin to work on

incremental releases and incorporate new data hubs one at a time. This approach will

let one adjust the operation incrementally and understand how to use data to influence

actions throughout the organization. Many projects fail because they try to do too much

at once. It is okay to start slow, learn, adapt, and then move on to the next step. In fact,

this is the easiest way to help the organization understand all the possibilities.

5. Link Customer Data to Company Process

Each new data set presents an opportunity to change the way you deliver products and

services. Push data-driven decisions into the organization at all levels—from product

development through to packaging, promotion, pricing, and advertising.

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6. Create Repeatable Process and Action Paths
One of the hurdles to overcome when adding additional data sets is the desire to run

one-off reports to answer interesting questions without connecting those answers to

actions. Big Data shouldn’t mean data paralysis. One should take a thoughtful approach

to incorporating data sets. It is advised to ask team members what can be gained by

adding the data set and what actions should be taken from the learnings. It’s crucial to

clear a path for execution within the organization to prevent the data learnings from

becoming just another interesting factoid devoid of connection to the customer or the

product.

7. Test, Measure, and Learn

With each data set, it is essential to test the assumptions. For example, responsive

marketing systems should let the company push personalized marketing out the door

quickly with a variety of messages. If the company is using Big Data appropriately, it

can determine instantly which ads are performing, allowing you to optimize them on-the-

fly.

8. Map Data to the Customer’s Life Cycle

Once the company has been successful with a project or two, it can begin to get more

creative and map Big Data needs to each stage of the customer life cycle by asking

questions like these: When a customer is discovering a product or service, where are

they getting their information? How do they discover new products?

Taking the company through the above eight steps should help the Big Data project

stay on track and help understand how each project will impact the business.

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ARTIFICIAL INTELLIGENCE [50] [51]
For businesses, practical AI applications can manifest in all sorts of ways, depending on

the organizational needs and the business intelligence (BI) insights derived from the

data the company collects. Enterprises can employ AI for everything from mining social

data to driving engagement in customer relationship management (CRM) to optimizing

logistics and efficiency when it comes to tracking and managing assets.

Techcode's Global AI+ Accelerator helps incubate AI start-ups but also helps start-ups

to incorporate AI on top of their existing products and services, and offers a consulting

service to do the same for other businesses. The accelerator sees some clear near-

term opportunities for AI, as well as longer-term goals that are still three to five years

out.

According to Luke Tang, General Manager of TechCode's Global AI+ Accelerator

Program, AI is now being driven by all the recent progress in ML. There's no one single

breakthrough one can point to, but the business value that can be extracted from ML

are immense. From the enterprise point of view, what's happening right now could

disrupt some core corporate business processes around coordination and control:

scheduling, resource allocation, reporting, etc. as these are very time-consuming tasks.

Other opportunities on the enterprise side require more creativity and social intelligence

that's not addressed by current technology.

Enterprises can leverage AI and lay out a step-by-step process to integrate AI in an

organization.

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1. Get Familiar with AI
It is essential to take the time to become familiar with what modern AI can do. The

company should also take advantage of the wealth of online information and resources

available to familiarize itself with the basic concepts of AI. Recommended below are

some of the remote workshops and online courses offered by organizations such as

Udacity as easy ways to get started with AI and to increase knowledge of areas such as

ML and predictive analytics within the organization.

The following are a number of online resources (free and paid) that can be used to get

started:

 Udacity's Intro to AI course and Artificial Intelligence Nanodegree Program

 Stanford University's online lectures: Artificial Intelligence: Principles and

Techniques

 edX's online AI course, offered through Columbia University

 Microsoft's open-source Cognitive Toolkit (previously known as CNTK) to help

developers train deep learning algorithms

 Google's open-source TensorFlow software library for machine intelligence

 AI Access Foundation's open-source code directory at AIResources.org

 The Association for the Advancement of Artificial Intelligence (AAAI)'s Resources

Page

 MonkeyLearn's Gentle Guide to Machine Learning

 Stephen Hawking and Elon Musk's Future of Life Institute

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2. Learn how machine learning can help the company
When preparing to use machine learning, the first thing organizations must do is train

lead engineers to have a solid understanding of the technology, how it works and what

advantages it can deliver. For example, Boeing has set up a joint lab project with

Carnegie Mellon so that its engineers can understand its potential impact in every

aspect of design, manufacturing and maintenance. This demonstrates how critical

education should be when applying machine learning to complex environments.

3. Research other businesses already using AI and machine learning to

determine parallels
AI and machine learning are not yet widely implemented. So, it's worth finding out what

other businesses have similar goals, and how they have addressed the issue.

4. Identify the Problems the company Want AI to Solve

Once the company is up to speed on the basics, then the next step for any business is

to begin exploring different ideas. It is best to think about how one can add AI

capabilities to the existing products and services. More importantly, the company should

have goals in mind of specific use cases in which AI could solve business problems or

provide demonstrable value.

5. Prioritize Concrete Value

Next, one needs to assess the potential business and financial value of the various

possible AI implementations that have been identified. It is important to tie the initiatives

directly to business value.

To prioritize, one must look at the dimensions of potential and feasibility and put them

into a 2x2 matrix. This should help prioritize based on near-term visibility and knowing

73
what the financial value is for the company. For this step, ownership and recognition

from managers and top-level executives is required.

6. Acknowledge the Internal Capability Gap

There's a stark difference between what the company wants to accomplish and what it

has the organizational ability to actually achieve within a given time frame. A business

should know what it's capable of and what it's not from a technological and business

process perspective before launching into a full-blown AI implementation.

Sometimes this can take a long time to do. There is an opportunity with AI to change the

innovation and strategy part of the equation but, if the company doesn't have a well-

established process already, it doesn't make sense to do that for the company.

Addressing the internal capability gap means identifying what the organization needs to

acquire and any processes that need to be internally evolved before the project gets

going. Depending on the business, there may be existing projects or teams that can

help do this organically for certain business units.

7. Choose a platform
With Amazon, Baidu, Google, IBM, Microsoft and others all offering machine learning

platforms for the enterprise, there is no obvious place to start. Many of these options are

similarly priced, and aimed at beginners. It is advised to check out the individual articles

on these platforms in this special feature to help the organization decide if one of them

is right for the business.

8. Create a strategy

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Data science companies like Boxever can help businesses deploy AI, for example, by

addressing a question like, 'How can AI improve marketing?' AI could help make

predictions about what happens when customers open an email, for example, based on

previous experience. This is an easy way to integrate AI into current operations.

Supply chains have 50 times more data available to them today than they had just five

years ago, yet only a small fraction is being analysed in real-time. It is the view of IDC

that the supply chain must become a "thinking" supply chain, one that is intimately

connected to data sources such as social sentiment and the IoT, enabled with

comprehensive and fast analytics, openly collaborative through cloud-based commerce

networks, conscious of cyber threats, and cognitively interwoven.

9. Create an implementation plan

Before the company can get started deploying its product, it needs to think about a plan.

According to Sundown AI's Cardenas, a multi-region deployment plan using Amazon

Web Services (AWS) has a detailed description for users. Setting up the AWS

infrastructure would take a few days, assuming that the web application has been tested

on such infrastructure previously. If it hasn't, one would need to set up the web app,

database and other related infrastructure on AWS, connecting all the components,

which could take a week or two. Additionally, it would require constantly refining the

coding for bugs, which would call for additional deployments. It is estimated that the

process for a "deploy pipeline" could take another ten days or so.

75
10. Bring in Experts and Set Up a Pilot Project
Once the business is ready from an organizational and technological standpoint, then

it's time to start building and integrating. The most important factors here are to start

small, have project goals in mind, and, most importantly, be aware of what one knows

and doesn't know about AI. This is where bringing in outside experts or AI consultants

can be invaluable.

One doesn't need a lot of time for a first project; usually for a pilot project, 2-3 months is

a good range. It is wise to bring internal and external people together in a small team,

maybe 4-5 people, and that tighter time frame will keep the team focused on

straightforward goals. After the pilot is completed, the company should be able to

decide what the longer term, more elaborate project will be and whether the value

proposition makes sense for the business. It's also important that expertise from both

sides (the people who know about the business and the people who know about AI) is

merged on the pilot project team.

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Case 1
Table 1 Details of Case 1

Factor Response

Annual Turnover <50 crore

Type Export & Domestic

Lines 5

Daily Production Capacity 3000

Software ERP, CAD

Integration No

Data Entry Manually collected & fed into

system
Company needs to increase flexibility Strongly Agree

Company can produce Multiple styles and varied order

quantities (small and large) but
cannot handle frequent
changeovers
Awareness about automation Yes

Plans for automation No

Awareness about digitization Yes

Plans for digitization No

Instructions from buyers Buyers only look for lowest

price, will implement technology
only if there is benefit to them

77
This company is a small apparel manufacturer with operations in two locations in India.

This manufacturer produces garments for both domestic market and export.

As can be seen above, the company has awareness about automation and digitization.

However, their main concern is that in exports, margins are so less that the capital costs

involved in digitisation cannot be afforded for MSMEs like them. Also the category of

skilled manpower/labour is not available and needs to be trained for digitisation, which

itself is a huge cost. The only area where they are able to digitise is via an ERP system,

which also depends on manual entries. There are many advantages but the current

level of implementation is poor compared to countries like China / Bangladesh. Current

level of government and bank support is not sufficient. It's difficult to invest large amount

of funds into converting operations into being completely digitalized. Moreover the mind

set of people in the industry is not geared towards this change.

Suggestions

Since this company is still in its nascent phase they should not rush into any

overambitious projects. Instead, they should slowly invest in smaller technologies, and

seize the low-hanging fruit such as areas that will give quicker ROIs, as well as areas

that are facing bottleneck issues.

1. Assess the current processes of the company

2. Look for opportunities that can be easily fulfilled

3. Compare and assess solutions available for the opportunity

4. Create a financial scenario and implementation strategy

5. Test the solution

78
 6. Pilot run the solution

7. Assess the benefits

8. Implement in other areas

This company should focus on implementing lean practices such as Kaizen, Kanban

etc, Preventive maintenance should be considered as well.

79
Case 2
Table 2 Details of Case 2

Factor Response

Annual Turnover 50-100 crore

Type Export

Lines 8

Daily Production Capacity 5000

Software ERP, MRP-I, MRP-II, CAD

Integration Yes

Data Entry Manually collected & fed into

system
Company needs to increase flexibility Agree

Company can produce Multiple styles and varied order

quantities (small and large) as
well as frequent changeovers
Awareness about automation Yes

Plans for automation No

Awareness about digitization Yes

Plans for digitization No

Instructions from buyers No instructions

80
This company has a single unit with 8 lines with a capacity of producing 8000 pieces per

day. They have ERP, MRP I and II, CAD and ERP installed, which are integrated with

each other to some extent. While this is still far from being a sufficient implementation to

be considered from digitalization, it is closer to the first phase in the 5 phase

implementation plan than the previous company. This company has also not received

any instructions from their buyers.

Suggestions

This company can actively invest in a low-risk technology such as PLM, while

considering MES and other such options. This will ensure that the company does not

stagnate and can benefit from easily implementable technologies that are commonly

used in the apparel sector, while also taking into consideration those technologies that

may be implementable for them in the near future.

The steps for implementation for this company can be found in phase 1. Since ERP has

already been implemented, they should invest in a PLM that can be integrated with this

ERP. While looking at MES solutions, they should make sure that it is compatible with

their current ERP software.

Meanwhile, they can also slowly introduce automation for processes that are giving high

rates of defects. This automation does not have to be limited to new machinery and can

also include small deskilling devices such as profiles and folders. This will ensure that

the company is at least up to date with possible automation and other higher level

technology when it is able to implement them.

Case 3
81
Table 3 Details of Case 3

Factor Response

Annual Turnover >1200 crore

Type Export
Lines 30

Daily Production Capacity 20000

Software ERP, MRP-I, MRP-II, PLM,

SCM, CRM, SPC, CAD
Integration Yes

Data Entry Manually collected & fed into

system
Company needs to increase flexibility Strongly agree
Company can produce Multiple styles and varied order
quantities (small and large) but
not frequent changeovers
Awareness about automation Yes

Plans for automation Already have pattern plotters,

planning to install automatic
spreaders
Awareness about digitization Yes
Plans for digitization Yes, planning to introduce 3D
CAD
Instructions from buyers No instructions

82
This organization is a large apparel production company with several units across

various locations in India. They have many software and systems installed that

mentioned in phase 1. They already have plans to install automatic spreaders to

automate the process of spreading. They also plan to implement 3D CAD, one of the

technologies that is a part of digitization in the apparel sector. However, these are baby

steps compared to what the company has the potential to achieve in this area. This

company can be the pioneers in implementation of Industry 4. In India.

Suggestions

This company has enough stability and revenue to actively invest in MES. They can

look at various solutions that are available and implement a pilot project in a small

number of machines. On the other hand, they can also convert this into an in-house

project and establish a small team to create simple devices to capture data from the

production process, starting from a small fraction and slowly implementing it in all lines.

This will save the cost of implementation and give greater flexibility to customize the

solution as required.

The company can also implement automation in various processes that are repetitive in

nature, such as ironing and stitching of a standard seam (e.g. trouser pockets), first

starting at a small scale to realize the benefits and ROIs associated with the solution.

The steps for implementation for this company can be found in phase 1. Since ERP has

already been implemented, they should invest in a MES that can be integrated with this

ERP. While looking at MES solutions, they should make sure that it is compatible with

their current ERP software.

83
The company can also look at robotics for operations in warehousing and material

transport, such as automated guided vehicles (AGVs), overhead conveyor systems for

storage and transport of finished garments, unit production systems etc.

84
6. Financial Data
Assumptions:

Industry 4.0 is to be implemented in an apparel manufacturing unit.

The unit is implementing these technologies for 2 production lines, having 100 sewing

machines. Efficiency of lines is 50%.

Costs calculated are simply those of incorporating Industry 4.0 in an existing

manufacturing unit and do not include cost of set up of machines, electricity, real estate

etc.

Phase 1:

Implementation of basic software such as ERP, MES and PLM. If a company already

has any of these implemented, the cost of that software will be excluded from total cost.

Table 4 Financial Data of Phase I

Software Users Cost Comments

Manufacturing
100 20.3 lacs [52]
Execution System

Cost inclusive of
Product Lifecycle
6 lacs [53] installation,
Management 5
maintenance, support
Software
and upgrades (MSU)

Enterprise Cost inclusive of

5 25-40 lacs [54]
Resource Planning installation

85
MES
Table 5 Cost of MES Implementation

Initial Project Cost

Total Device Connectivity ₹ 6,00,000

Total User Terminals ₹ 2,00,000

Total Software ₹ 10,34,000

User Training ₹ 10,000

Miscellaneous NA

Subtotal Total Project Cost ₹ 17,43,000

Support contracts (18% of

software cost) ₹ 1,87,000

Total Maintenance Cost ₹ 1,87,000

Total Project Cost ₹ 20,30,000

Benefits of MES [55]

Labour Cost Savings: Manufacturers who implement MES experience a 5% “OEE”

uplift. Equipment effectiveness means that employees won’t need to spend time doing

activities that can be done through machinery as well as managing the equipment.

Therefore, this results in labour cost savings by MES users.

86
Lower Raw Materials Cost: Manufacturers who implement MES experience a 4% “Raw

Materials Utilization” uplift. Thus, it can be reasoned that higher complete-and-on-time

shipments results in a 4% lower cost of raw materials when using MES.

Equipment Cost Savings: Manufacturers who implement MES experience a 6%

“Capacity Utilization” uplift. If existing capacity is utilized better, manufacturers won’t

need to invest in new machinery to expand production capacity. Therefore, this results

in cost savings in equipment costs.

Revenue Uplift: Manufacturers who implement MES experience a 5% “Complete-and-

On-time Shipments” uplift. Thus, higher complete-and-on-time shipments results in a

5% revenue uplift when using MES.

Quantifying Increased Revenues

Revenues directly increase when throughput is increased or cycle times are reduced,

therefore producing new product faster in a capacity constrained environment.

Some improvement examples include:

 Reduced cycle times by an average of 35 percent

 Reduced lead times by an average of 22 percent

 Reduced duration of setup by up to 50 percent

 Reduced New Product Introduction time by up to 50 percent

When looking at producing more product in the same amount of time or less, the

financial contribution is roughly equal to new revenue minus direct costs such as

87
consumed materials. Most of the labour, building expenses and other indirect costs do

not experience incremental increases.

The impact of a new product introduction is not quite as linear because the market may

not be ready to consume all product that is produced. On the other hand, capturing the

market several days or weeks before the competition may translate into long-term

revenues, which can exponentially outweigh incremental increases.

Reduced Costs

Reduced costs have a rather direct translation to financial gain for manufacturers. Some

improvement examples include:

 Material and energy savings from defect reduction by an average of 22 percent

 Labour savings from a reduced data entry time by an average of 36 percent

Labour savings from reduced shift change paperwork and reduced lost paperwork by

averages of 67 percent and 55 percent respectively.

Material savings often translate to direct savings in product costs. Some labour savings

can translate to direct product costs while others translate to indirect manufacturing

costs, which are then spread over many products.

Reducing costs generates a better margin. This could also be used to reduce selling

prices, therefore generating an increase of the market share and indirectly an increase

of the revenue.

Reduced Risk

88
Reduced risk can be quantified in two areas: cost savings and brand protection. The

“cost of compliance” is primarily a labour cost to record, track, analyse, recall, etc. and

an archiving /retrieval cost for physical paper. Therefore metrics like the following

translate to direct cost savings:

 Reduced lost paperwork by 55 percent

 Reduced quantity of documents by 10 to 25 percent

 Reduced investigation times by 20 to 30 percent

 Recalls, “spills” and containment reduction/elimination

 Reduced documentation / procedural errors by 50 to 80 percent

A large portion of reduced risk is associated with the potential that a brand or even the

enterprise could suffer if a risk turns to reality. These calculations become big quickly,

especially when calculating the lost production even for a single day while trying to

resolve an issue (chance of occurrence multiplied by the cost or impact).

89
PLM
Table 6 Cost of PLM

Service Price Features

Innovation Rs.10,000 per month /  Ideation Management

 Requirements Management
Management user
 Concept Design Management
 Proposal Management
 Portfolio Scenario Analysis

Product Rs.10,000 per month /  Item Management

 BOM Management
Development user
 Change Management
 Approved Manufacturers List (AML) and
Attachments
 Product Readiness Analysis

Product Hub Rs.10,000 per month /  Data On-Boarding

 Product Taxonomy
1,000 records
 Catalogue Management
 Data Governance and Workflow
 Product Data Quality
 Digital Asset Management
 Data Publication and Syndication

Quality Rs.5,000 month / user  Inspection Plans

 Inspections
Management
 Quality Issues
 Corrective Actions

90
Benefits:

 Design cycle time reduced 25%

 2% reduction in direct materials costs

 2% savings on direct materials purchase

 60% reduction in rework production costs

 Material cost reductions approximately 2% to 3%

 Eliminated almost 100% of customer order errors

 Reduced purchasing order time by 30 minutes per transaction

 100% elimination of sending clients out-of-date product data

 Order errors reduced by 50%

 Order volume increase 40%—order errors decreased 75%

 Significant savings on allowances for warranty and returns

 Time for document search reduced by 80%

 Administrative employee productivity improved by 10-15%

[53]

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ERP
Table 7 Cost of ERP

Number of Users 5

Initial ERP Investment Low Estimate High Estimate

Software Licenses ₹ 6,00,000.00 ₹ 10,00,000.00

Project Management / OCM ₹ 6,00,000.00 ₹ 10,00,000.00

Technical Implementation Costs ₹ 6,00,000.00 ₹ 10,00,000.00

Miscellaneous Costs ₹ 6,00,000.00 ₹ 10,00,000.00

Total Investment ₹ 24,00,000.00 ₹ 40,00,000.00

Benefits of ERP

Table 8 Benefits of ERP

Item Improvement Comments

Direct labour 5 to 7% Reductions in productivity idle time,
productivity overtime, layoffs, and other items caused by
the lack of planning and information flow.
This is very conservative.
Purchase cost 3% Better planning and information will reduce
supplier costs.
Inventories One time cash flow
Raw Material and 6% to 15%
WIP
Finished goods 18% These are very low numbers for a Class A
company.
Premium freight 30% Produce and ship on time reduces
emergencies
[54] [56]

Phase 3:
92
Here is the actual beginning of Industry 4.0 application. This step required use of

sensors and programmable logic controllers (PLCs) to collect data (which will also be

used in later phases) from the production floor and store it in a remote and secure

location using Internet of Things. There are two ways to do this:

1. To purchase new machines that have Internet of Things and suitable sensors in

them, or

2. To attach sensors to existing machines and send data using a standalone

system

Brother IoT system

Costs

Approx. Rs. 6,66,500 for server + additional router charges

Use of new machines recommended – Rs 50,000 approx. per machine (including

duties)

Panel for old machine – Rs. 4500-7000 per piece

Estimated cost for method 1: Rs. 56.7 lacs

Estimated cost for method 2: Rs. 13.4 lacs

93
Benefits of implementing system with new machines

 8-10% increase in efficiency

 Reduced material handling

 Better finishing

This phase also includes incorporation of automation, which in the case of the apparel

industry, means automatic sewing machines. These machines can sew a particular part

of the garment automatically, such as a welt pocket or belt loops on a jeans, and certain

settings in the machine can be changed according to the requirement of the garment.

That being said, the number and types of machines required in a unit would differ from

company to company, as well as from product to product.

Overhead conveyors: ₹ 900/ft

Automatic ironing machine (shirt): ₹ 15 lacs approx.

Automatic cutter: ₹ 50 lacs approx.

Automatic spreader: ₹ 25 lacs approx.

Cost calculations will differ from company to company as per the products being

produced, type of line (progressive bundle, modular etc.), areas where

automation is applied etc.

94
Phase 4:
This phase entails incorporation of robotics for the production of apparels in a

manufacturing unit. The case taken is of Softwear’s latest robotic sewing machine that

can stitch around 1142 T-shirts in an 8-hour shift.

Total Project Cost= ₹ 1,27,00,000 approx. [57]

While the current applicability for this technology is limited to simple garments such T-

shirts only, the future looks promising. With new innovations and reduced costs, future

sewing robots may become a flexible and cost-effective addition to the setup of a smart

factory.

Phase 5:
Upon successfully implementing the previous steps, the company can now implement

Artificial Intelligence and Big Data analytics based on its requirements. Although an

apparel industry specific AI has not been developed yet, it is estimated that the cost of

such an AI would be around 65 lacs to 4 crores, depending on the level of complexity

and other factors such as number of machines incorporated into it, features required by

the company, scale of operations etc.

Also, as technology improves and industry specific software is developed and

incorporated into practice, it can be assumed that the cost of an AI for such purposes

will reduce over time. Estimations have been used here because the actual price of

the hardware/software is not yet available as the technology is still under

development.

95
ERP provider Macola discovered in a study involving hundreds of medium and large

US-based wholesale distributors and manufacturers that 77% of the manufacturers

surveyed had already automated their core business processes with AI-based software.

Investments in technology had led to 81% of those surveyed reporting reduced cost and

increased revenue, 76% reporting error reductions and accuracy improvements, and

95% reporting better customer service.

According to Volkhard Bregulla, Vice President of Global Manufacturing Industries at

Hewlett Packard Enterprise, AI-enabled predictive maintenance will allow manufacturers

to achieve 60 percent or more reduction in unscheduled system downtime, which will

dramatically reduce costs that accumulate across production downtime, part

replacements and inventory. [58]

While the cumulative costs seem to be very high, it should be kept in mind that the

implementation of each phase will consequently improve the operation of the production

unit, thereby reducing costs involved, increasing transparency and accountability as well

as increasing profits. The company as a whole can grow and increase its turnover in

this way, thereby facilitating the implementation of the next step.

Note: Phase 3 and 4 can also be implemented concurrently if possible. These, along

with implementation of a flexible production system, will greatly increase the flexibility

and reduce changeover time of the system.

96
7. Results
While there are a lot of Technologies available for the implementation of industry 4.0 in

the manufacturing sector, very few such Technologies are specifically meant for the

apparel industry. Software such as ERP and PLM that are customised for apparel

manufacturing are available. However there are very few manufacturing execution

systems that are specifically designed for the apparel production process. This does not

mean that MES cannot be implemented in the apparel sector. The system can be

customised according to the needs of the industry, although a system that has been

made keeping in mind the specific needs of and industry would perform better than one

which is more general signature.

PLM and ERP both have been implemented in the industry previously with successful

results. Therefore a company looking to invest in these for the first time will have an

industry benchmark to compare to. Although MES implementation has been limited, the

benefits associated with it are sure to give ample returns on investment.

The second phase is simply the integration of the systems implemented in the previous

phase. This phase provides numerous qualitative benefits with low risk.

The use of data collected from PLC integration in the third phase provides better real-

time visualisation of the operations of the production floor. This enables faster and

better decision-making from the management’s point of view.

Labour costs make up a large portion of the total cost of garment manufacturing. On top

of this, labour productivity and efficiency are difficult to maintain. Operators require

97
training and their outputs vary due to several factors. There is also a margin for defects

being produced due to human error.

With increasing labour costs, it would be prudent to stay aware of the robotic-related

automation opportunities in apparel manufacturing. The initial investment of this phase

is high, but the return on investment is also expected to be beneficial.

Companies are now looking towards Big Data and Artificial Intelligence to conduct

advanced analyses and these technologies will be key to remain competitive in the

future.

While the cumulative costs seem to be very high, it should be kept in mind that the

implementation of each phase will consequently improve the operation of the production

unit, thereby reducing costs involved, increasing transparency and accountability as well

as increasing profits. The company as a whole can grow and increase its turnover in

this way, thereby facilitating the implementation of the next step.

98
8. Limitations & Scope of Further Study
The study takes a qualitative approach to find out the technologies that are available or

are expected to be available in the near future for the apparel manufacturing sector. The

implementation guidelines mentioned in this study are just that – guidelines. Each

individual case of a manufacturing unit will differ from the other in the sense that the

needs of the company, budget, risk-taking ability etc. will all differ substantially.

A lot of work is still going on in this field. Several new technologies are expected to

arrive within the next 5 years which may have an impact on the calculations and the

plan presented here. Since this process of implementation is a dynamic one, the

organisation which may be thinking of adopting these technologies must be aware of

the newer technologies available in the market.

Further studies can be done to find out the exact impact of each technology mentioned

in a real-life apparel production scenario. Small implementations to realise the practical

implications of these technologies can also be conducted. A financial analysis can be

conducted by assuming certain parameters of an apparel production company for which

the analysis will be done. A complete financial analysis with return on investment can be

calculated when complete data on the new technologies is available.

Several machine manufacturers and software developers how working towards creating

solutions that cater to the apparel industry. It would be worthwhile to consider new

technologies in any implementation that is to be carried out in the future.

99
9. Conclusion
This study shows that industry 4.0 has a lot of scope in the apparel industry. The

implementation of industry 4.0 can generate a lot of benefits for the apparel

manufacturers.

Many apparel manufacturers have already successfully adopted one or more of the

software mentioned in the first phase. In such cases, the process has already begun to

some extent. These companies can now move towards higher technological

implementation when these technologies are made available and decide on the path

they want to take: mass manufacturing, mass customization, agile manufacturing or

made-to-measure.

In conclusion, it can be said that industry 4.0 has not been able to penetrate the apparel

industry yet. Some large-scale manufactures have plans for related projects but smaller

manufacturers are mostly out of the loop. While most manufacturers have an idea of

what digitisation and industry 4.0 is, they do not know how to implement it because of

the large amount of investments that it demands.

While this is true, it is also necessary to consider that starting at lower risk projects with

high and faster returns will act as an enabler for the implementation of higher level of

technologies. Organisations must consider all aspects before jumping into highly

ambitious projects. Instead, they should slowly invest in smaller technologies, and seize

the low-hanging fruit such as areas that will give quicker ROIs, as well as areas that are

facing bottleneck issues.

100
Concept Note for Shop Floor Data Collection
Attachment

Objective: To develop a low cost attachment that can collect real time sewing data from

the apparel production floor.

Need of the project:

The current garment manufacturing process in India is highly decentralized in nature. A

major issue present is the collection of data for monitoring the productivity and efficiency

of each operator and tracking of the status of the order. Changeover from one style to

another takes considerable amount of preplanning and wastes a lot of productive time.

This is a big issue considering the fact that apparel industry has to deal with very

frequent style changes.

At the same time, due to multiple seasons and shorter lead times, buyers are becoming

more and more concerned about delivery schedules. It has become important now more

than ever to fulfil target delivery dates to maintain the shorter season cycle.

Most factories now use the progressive bundle systems with long lines and

decentralized manufacturing process. This ultimately poses the challenge of retrieving

the data with regard to the status of any particular style.

In the event that a buyer wishes to know the current status of a particular order, it would

take a substantial amount of time to gather the required information. It is also difficult to

101
consolidate this data accurately and speedily as most of the current data collection is

done manually.

Owing to the conventional methods used in manufacturing setup, the retrieval of

production data is a big challenge. Predominantly, factories are small in size and use

machines with clutch motors due to the price difference. Thus this project is an attempt

to retrieve production data directly from the sewing machines even with clutch motors.

The device concept suggested in this study is aimed at collecting real time data from

apparel sewing machines. Of course, all these trackings are possible with CNC

machines which already have electronic components through which this data can be

collected and stored. However, in India, apparel manufacturing factories predominantly

make use of basic clutch motor machines which do not have any such electronic ‘brain’.

This is especially true for smaller manufacturers who do not have the capacity to invest

in financially demanding investments, especially those involving complete overhaul of

the current equipment setup.

102
Abstract of Solution:

The device has been made to count the number of stitches a sewing machine sews. It

has been developed presently for an SNLS machine, and its utility can be extended to

other machines as well. The USP of this device is that it only counts useful stitches, i.e.

stitches made on fabric.

The device makes use of infrared sensors to detect the movement of the take-up lever

in SNLS sewing machines, which is directly linked to the motion of the needle. Another

infrared sensor detects the presence of fabric in the vicinity of the needle. The device

counts stitches only when it detects fabric to be present under the needle. This data can

then be sent to a server to be stored via a Wi-Fi module in real time. From here on, this

data can be analysed and used for determining the productivity and efficiency of the

operator as well as the number of pieces stitched.

Other functionalities can be added on as per the needs of the apparel manufacturer

(e.g. RFID card reader for attendance purposes)

Target Segment for the Solution:

This device is targeted for small and medium sized garment manufacturers who cannot

invest in expensive technologies. However, even larger companies can make use of this

innovation in machines that have a useful life left or machines that have been rented. It

can be used in machines with clutch motors as well as servo motors.

103
Methodology:

For the development of this device, first the technologies currently available/under

development were studied to find out if anything similar had already been developed.

Next, a study was done to determine the type of sensors that would be suitable for the

device, as well as the chip that would be apt for this purpose.

The required materials were then obtained, put together and tested to see if the setup

works as expected.

Affordability:

The cost of the hardware required for this device has been selected to keep the cost to

a minimum. The device uses two basic infrared sensors and a Wi-Fi___33-enabled

chip, along with connecting wires and a case to contain the chip. Additional costs will be

incurred on the addition of functionalities. All in all, the cost per unit is expected to

remain under Rs. 1000 when the device is mass-manufactured.

Data will be collected in a server, whose cost can be reduced by employing an

indigenous provider with maintenance, upgrades and other services included.

Other costs included will be those of developing apps/software to act as an interface to

display the data.

104
Benefits:

 Can be used in both clutch and servo motor machines

 Versatile device, many functionalities can be added

 Enables automatic data collection, which is real-time & more accurate than

manual methods

 Data collected can be used to determine:

o SAM of each operation

o Needle time calculation

o Productivity, efficiency & utilization of each operator individually

o An estimate of %age of order completed and target date of completion

o Actual thread consumption

o Machine utilization

 The data collected can be used to create a skill matrix over a short period of

time. This can then in turn be used in line balancing and reducing changeover

time.

 Data from this device can also be used to anticipate bottlenecks, because of

which manufacturers can deal with the issue before it occurs, saving valuable

time.

 The collected data can also be used for historical analysis.

 This device enables faster and more accurate consolidation of relevant

production data.

 The device will act as an icebreaker for smaller companies. By implementing a

low cost project and experiencing the benefits of Industry 4.0, some

105
 manufacturers may be more inclined to invest in higher level technologies in the

future.

Technology Readiness Level:

The device is currently at the Technology Readiness Level (TRL) 4. This means that the

basic technological components have been integrated to establish that they will work

together. This is relatively “low fidelity” compared with the eventual system. Examples

include integration of “ad hoc” hardware in the laboratory. [59]

Requirements for complete setup:

1. A sensor to detect presence of fabric (sensor 1)

2. A sensor to count needle movement (sensor 2)

3. A data processor chip with sufficient memory to count no. of operations

4. A secure remote data server & data mine

5. Wireless connectivity to the remote data server & data mine through router

6. A data analytics software that monitors all shop floor machines in real time by

taking data from remote data server

7. A mobile app to act as interface for operators

8. A mobile app to act as interface for supervisors

9. A mobile app to act as interface for QC

10. A software/app-based interface for management

106
Working:

1. System is on standby

2. Operator sets up machine (threading etc.) and picks up piece to stitch

3. Operator places material under needle to stitch – detected by sensor 1

4. Operator begins stitching – no. of stitches is counted by sensor 2

5. If no. of stitches is within acceptable range for given operation, it is counted as

one operation, data related to this operation is stored with its code (for ex. Style

& Garment panel no.)

6. If not, it is counted as defect and is reported as being so.

7. This data is sent to remote data server over a secure wireless connection

8. The data analytics centre processes this data and comes up with reports that

state the productivity of each machine, line and operator in each hour, day, week

and month that are further stored in a data mine for later retrieval.

Other points to be noted:

 QCs can have a special app where they can mark a garment panel/ operation to

be defective against the unique number (for ex. Style & Garment no.)

 Operators can have an app where they can retrieve their performance stats

 Supervisors can have an app where they can look up the performance of

individual operators, and the respective lines under their supervision. Supervisors

can also set the line by scanning codes on machines which will feed in as per

order of the operations.

107
 A software can be used by the management to pull up detailed analytics for

decision making purposes.

 System will work better with RFID for bundle tracking, this can enable WIP

tracking

 System can be configured for operations such as stitching of piping, where length

of stitching completed can be calculated

 Machines can have some form of proximity card reader/biometric system to keep

track of which operator is performing which operation, as well as act as an

attendance system

 Data from machine can be used for OEE, machine usage statistics etc.

 Over a period of time, accumulated data can be used to create skill matrix and for

line balancing

 Optical sensors can be introduced to check seams for defects as they are being

stitched

 Provision can be made for counting operations that are sets, such as shoulder.

 Each m/c can have a QR code; line setup can be done by scanning QR-based

code. Sequence of machines in line can be recorded by line supervisor, which

can be correlated to sequence of operations and no. of stitches in each operation

that has been fed into system.

 Operator can alert maintenance mechanic and send a machine breakdown

update to supervisor

108
 Sensor Data
•Edge Computing

IoT

Cloud/ Data Server

Analytics

Reports

Stored in Data Mine

Retrievable Reports
•Supervisor, QC, Mgmt., Operators

Figure 6 Proposed movement of data

109
 START

Operator aligns pc to stitch

MATERIAL SENSOR

Is there
NO
material

under the

needle?
YES

NEEDLE MOTION

SENSOR/COUNTER
Fabric is removed

Did needle
Create alert and NO move the
count as defect
approx.

required no.

of times?
YES

Count 1 operation

Send data to server

Figure 7 Process of data collection

110
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119
Appendix A - Questionnaire
All your information will be kept confidential and will only be used for research purposes.
1 Name of the company: *
______________________________________________________________________
2 Location of the company: *
______________________________________________________________________
3 Annual turnover of the company: *
If you have standalone values for your apparel unit, please select the appropriate value.
Else, please select as per your overall turnover.

o less than 1 crore

o 1 crore to 100 crore
o 101 to 500 crore
o 501 to 1000 crore
o 1001 to 2000 crore
o more than 2000 crore
4 Which of the following describes your apparel production unit(s) best? *

o Export Oriented Unit (EOU)

o Domestic Production Unit
o Both
5 What is your daily production capacity? (in pieces) *
_____________________________________________________________________
6 How many production lines do you have in your apparel production unit(s)? *
______________________________________________________________________
7 Which of the following have been implemented in your company? *

o Enterprise Resource Planning (ERP)

o Product Lifecycle Management (PLM)
o Supply Chain Management (SCM)
o Customer Relationship Management (CRM)
o Manufacturing Execution System (MES)
o Material Requirements Planning (MRP I)
o Manufacturing Resource Planning (MRP II)
o Statistical Process Control (SPC)
o Computer Aided Design (CAD)

I
8 Are the software/systems used integrated with each other? *
If only some software are integrated, please select 'Other' and mention the software

o Yes
o No
o Other
9 How is data mainly collected in various areas? * (Implies data related to production,
quality, IE etc. Please select multiple options if required.)
 Manually (pen & paper)
 Digitally (via sensors/readers etc., fed directly into system)
 Collected manually and entered into system

10 Do you collect any sensor-based data in the production process? *

o Yes
o No
11 Where do you collect sensor-based data from?
For example: RFIDs, sensors in sewing machines etc. (Skip if you don't collect such
data)
______________________________________________________________________
12 Automation is the technique, method, or system of operating or controlling a
process by highly automatic means, as by electronic devices, reducing human
intervention to a minimum. In the apparel sector, it implies use of equipment such
as automatic spreaders and cutters, etc.
a. Has your company implemented any automation related to production? *

o Yes
o No
b. If yes, what automation has been implemented? (Please skip if your previous answer
is 'No'.)
______________________________________________________________________
c. How has this automation benefited production and the company? (Please skip if this
question is not applicable.)
______________________________________________________________________

II
13. Industry 4.0 is the current trend of automation and data exchange in
manufacturing technologies. It includes cyber-physical systems, the Internet of
things and cloud computing. Industry 4.0 creates what has been called a "smart
factory". (Source: i-scoop.eu)
a. Is your company aware of Industry 4.0/digitization? *

o Yes
o No
o Not sure
b. Does the company have any plans related to Industry 4.0/digitization? *

o Yes
o No
o Not sure
c. If yes, please give a short description of what your company has planned and what
will be its financial implications? (Cost, ROI etc.)
Please skip if this question is not applicable.
______________________________________________________________________
14 Which of the following can your company handle simultaneously? *
 Production of multiple styles of garments
 Variety of order quantities (small & large quantities)
 Frequent changeovers in less time
Do you think your company needs to be more flexible in its operations? *

o 1 (Strongly disagree)
o 2
o 3 (Neutral)
o 4
o 5 (Strongly Disagree)
16 Big Data is a massive, complex volume of both structured and unstructured
data that's so large it is difficult to process using traditional techniques. It may be
analysed computationally to reveal patterns, trends, and associations as well as
forecasts and simulations. (Source: Webopedia, Google)
a. Is your company aware of Big Data? *

o Yes
o No
o Not sure
b. Is your company capable of capturing big data? *

III
 o Yes
o No
o Not sure
c. Do you plan on investing in Big Data Analytics? *

o Yes
o No
o Not sure
17 Have your buyers provided you with any instructions regarding Industry
4.0/digitization? Will they support implementation of Industry digitization? *
______________________________________________________________________
18 What, according to you, are the advantages and disadvantages of Industry
4.0/digitization in the Indian apparel sector? *
______________________________________________________________________
19 What is your opinion about this survey?
______________________________________________________________________
20 If you're interested receiving the findings of this survey and further updates, please
enter your email address and you will be kept in the loop.
Your email is safe with us.
______________________________________________________________________

IV
Appendix B – List of Respondents

Company Name Location

Pranav Exports Tamil Nadu

Kuldeep Impex Pvt.Ltd. Jaipur

Textures Jaipur Jaipur

Sapphire Jaipur

Trojan Exim Pvt. Ltd. Mumbai

GMS Processors Pvt Ltd Mumbai/Tirupur

Superbb Tex Tirupur

Ess & Bee International Gurgaon

Cheer Sagar Jaipur

Philios India Pvt Ltd Delhi

Orient Crafts Gurgaon

V
 Annexure A – List of Persons Contacted

Name Contact/ Email ID

Spero Zervos [email protected]

Guruprakash S [email protected]

Nikhil Padhi [email protected]

Hasitha Jayatilake [email protected]

Christian Rasmussen [email protected]

VI