Scribd Logo
Upload

Welcome to Scribd!

  • 92 views

    Optimization of Profit Margin by Improving The Supply Chain in Pre-Production Activites at Shahi Exports, Unit-12

    Uploaded by

    ARYAN RATHORE
    Shahi Exports aims to optimize profit margins by improving pre-production supply chain activities. A survey found major delays occur in pre-production activities like sampling and planning. Implementing an order tracking system linked across departments could reduce delays by providing visibility into order status and generating alerts for delayed tasks. Streamlining some processes, like fabric stock data updates, could also reduce non-value added time.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Optimization of Profit Margin by Improving The Supply Chain in Pre-Production Activites at Shahi Exports, Unit-12

    Uploaded by

    ARYAN RATHORE
    92 views18 pages
    Shahi Exports aims to optimize profit margins by improving pre-production supply chain activities. A survey found major delays occur in pre-production activities like sampling and planning. Implementing an order tracking system linked across departments could reduce delays by providing visibility into order status and generating alerts for delayed tasks. Streamlining some processes, like fabric stock data updates, could also reduce non-value added time.

    Original Title

    Optimization of profit margin by improving the supply chain in pre-production activites at Shahi Exports, Unit-12

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Shahi Exports aims to optimize profit margins by improving pre-production supply chain activities. A survey found major delays occur in pre-production activities like sampling and planning. Implementing an order tracking system linked across departments could reduce delays by providing visibility into order status and generating alerts for delayed tasks. Streamlining some processes, like fabric stock data updates, could also reduce non-value added time.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    92 views18 pages

    Optimization of Profit Margin by Improving The Supply Chain in Pre-Production Activites at Shahi Exports, Unit-12

    Uploaded by

    ARYAN RATHORE
    Shahi Exports aims to optimize profit margins by improving pre-production supply chain activities. A survey found major delays occur in pre-production activities like sampling and planning. Implementing an order tracking system linked across departments could reduce delays by providing visibility into order status and generating alerts for delayed tasks. Streamlining some processes, like fabric stock data updates, could also reduce non-value added time.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 18

    Optimizing profit margin by improvement in supply chain in pre-

    production activities at Shahi Exports (Unit 12)

    Ananya Biswas
    BFT (2016 – 2020)
    Introduction to Shahi Exports Pvt Ltd (Unit 12)

    Shahi Exports Pvt Ltd

    States across India 9

    No. of employees Over


    100,000
    No. of manufacturing 65
    units
    No. of mills 3

    No. of garments per Over 144


    year million
    Problem

    PCD (Planned Cut


    Date) is not being
    met due to delay in
    different
    preproduction
    activities
    Leads to deviation
    from the ex-factory
    date
    Air shipment instead
    of vessel shipment
    (Comparison for air &
    vessel shipment is
    given in the next
    slide)
    Affects profit margin
    of the company
    Reason for this project

    Comparison between Vessel Shipment & Air Shipment

    By Sea By Air

    Container Size Weight Price Slab Size Price


    20 ft container 25400 kg $1300 +45 kg 150/Kg

    40 ft container 26300 Kg $2000 +300 kg 130/Kg

    +500 kg 110/Kg

    +1000 kg 90/Kg

    For 25400 Kg by Air, it costs = INR 25400x90


    = INR 228600
    = USD $ 3194.12 (2.46 times of vessel shipment price)
    Objective

    Primary Objective

    Finding out the major delay areas in pre production and suggesting solution to
    reduce the deviation from the planned T&A

    Secondary Objectives

    • To identify the non-value added activities and suggesting some techniques to


    improve the supply chain
    • To take a survey of the employees and to know whether they are aware of
    the loopholes or is there any other way they can improve in
    Literature Review

     Area of pre-production has been studied by many researchers in the past, have
    also been highlighted in papers related to Supply Chain Management (Global and
    Indian).

     Reports from AEPC, IIFT, magazines like Apparel Online

     Journals of Fashion Marketing and Management, International Journal of Textile


    and Apparel Technology, International Journal of Clothing Science and
    Technology. Reports from Apparel and Textile Challenge, Industry Forum (UK),
    Conference papers from Textile Institute (UK), dissertations at Nottingham Trent
    University (NTU), (Indian Institute of Technology (IIT), and National Institute of Fashion
    Technology (NIFT) as well as internship reports at the last named Institute.

     Research reports of industry & Buying House


    Pre – Production Activities

    According to various surveys & reviews (Reference - ), Pre- Production


    activities are-
    ➢ Meeting with buyers
    ➢ Development of initial samples for the buyer
    ➢ Development of fabric sample, bit loom, print and embroidery artwork
    ➢ Costing of a garment (complete cost as well as manufacturing cost)
    ➢ Pattern making, correction of pattern, pattern grading
    Contribute
    ➢ Fit sample, size set sample making and approval from buyer
    65%-70% of the
    ➢ Correction of fit samples according to buyer comments
    ➢ Approval process
    total delay
    ➢ Production planning, Material planning and line planning
    ➢ Placing an order for fabrics, trims, accessories and packing materials
    ➢ Testing of fabrics and other raw materials
    ➢ Study of approved sample
    ➢ Pre-production meeting
    Research Methodology

    Problem identification & department study

    Establishment of the problem

    Designing & conducting a survey to know the major delay reasons

    Analysis of survey results & supporting data to propose a solution

    Designing & developing An Order Tracking System

    Analysis of cost, profit & advantages

    Suggesting some ideas to remove some non value added process


    Data to Show Delays in Fabric Flow and PCD
    For SS20

    Delay reports were collected to see and analyse different reasons


     Delay Summary for July 2019
     Delay Summary for August 2019
     Delay Summary for September 2019
     Delay Summary for October 2019
     Delay Summary for November 2019
     Delay Summary for December 2019
     Delay Summary for January 2020

    Data includes – General order summary, Planned T&A, actual T&A, Delay quantity & PCDs
    Sample Size Determination for Survey

     Population is taken as the total employee strength of the depts


    related to pre-production activities
    Department Employee strength
    Marketing 120
    Sampling 98
    Planning 40 ▪ Framing the
    questionnaire – 9
    Sourcing (Fabric) 48
    days
    Sourcing (Trims) 30 ▪ Survey – 26 days
    Store 25
    BI 12
    Total 373
    Taking Confidence level 95% and margin of error 3%, we get Sample
    size- 81
    Questionnaire
    Conclusion on analysis of the survey results

     A proper order tracking system linked with all the departments will help in
    more effective order execution.

     Streamlining of some of the processes in the critical areas will help in


    reducing delay.
    Order Tracking System - Objective

     To provide a simple and user friendly platform which is interlinked with all the
    departments

     Anyone can see the current status of one order

     Remarks can be given and necessary actions can be taken.

     Delay of critical activities, system will generate an alert notification.

     Link - http://ots-shahi.000webhostapp.com/shahi

     After the analysis of the survey it is expected that the delay can be reduced by 8 -
    10% with a proper follow up system
    Order Tracking System - Design

     Will contain dates for all necessary activities in pre-production

     Account holders of all the departments will be able to access

     With just one click they will be able to update the work status of their particular order

     Wont be able to interfare with other departments data

     Status in which the order is can be viewed easily

     In case of delay it will generate an alert

     Activity chart to keep track - Final excel sheets\OTS Activity sheet.xlsx


    Comparison of situations with and without Order Tracking System

    Without Order Tracking System With Order Tracking System

    In some cases (as in Lab dips, FPT, GPT reports no records Proper status of all the stages can be
    are being maintained in excel sheets – more time taking to stored and viewed whenever is
    find out what is the status of particular Lab Dip, FPT, GPT. needed.

    Data is not well organized. For certain Item no, different Data is well organized. Within one
    account holders are having different part of data in interface everything can be seen.
    different manner.
    Lots of files are required to maintain the data Only one folder / link is required to
    keep all the data.
    Account holders are often unable to realize that some tasks Account holders can see which task
    are continuously getting delayed is getting delayed and can take
    necessary action.
    Account holders need to explain the status to each other No need of explanation, any
    (to other departments). Unwritten words often cause authorized person can see the latest
    confusion and dilemma. status of one particular order.
    Process Streamlining

    Current Scenario Suggested


    ➢ For fabric stock data, merchant ✓ Training to store people for regular
    manually goes to store with dispatch update in the ERP system
    details (it is supposed to be updated in ✓ Training to merchants to learn the
    the system) correct path in ERP to find the data
    ➢ Store people takes min 20 minute ✓ 7 times (3 times updated, 4 times not
    (each time) to check rack physically updated)
    and give data
    Future Scope

    Observing the result of the software system & calculate the exact optimization of
    profit margin

    Integrating the software with existing ERP System

    Streamlining other processes found from the survey


    References
    1. Pre- production processes in garment manufacturing – By Prasanta Sarkar, June 30,
    2011https://www.onlineclothingstudy.com/2011/06/pre-production-processes-in-garment.html
    2. Calculation of sample size https://stattrek.com/survey-sampling/sample-size-
    calculator.aspx?Tutorial=samp
    3. http://www.garmentsmerchandising.com/pre-production-activities-of-a-garment-merchandiser/
    4. https://www.icontainers.com/help/20-foot-container/
    5. Observation in Shahi Exports Unit 12
    6. Dr. Archana Gandhi, Dr. Sunil Sharma, Merchandisers’ Performance and Supply Chain
    Competitiveness in Apparel Export Units, IOSR Journal of Business and Management (IOSR-JBM) e-
    ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 7. Ver. V(July. 2014), PP 37-44
    www.iosrjournals.org
    7. Hussain, S. (2012). Study on garment buying house merchandising. Dhaka: Daffodil Inernational
    University.
    8. Islam, Muhommad Shariful. Apparel Merchandising World. August 31, 2013.
    9. http://apparelmerchandisingworld.blogspot.in/2013/08/critical-path-tna.html.
    10. Analysis of the factors affecting the lead time for export of readymade apparels from Bangladesh;
    Proposals for strategic reduction of lead time by - Shahidul Kader , M.Sc. Maeen Md. Khairul Akter,
    M.Sc. Lecturer, National Institute of Textile Engineering and Research (NITER)

    Thank You

    You might also like