Over Booking Analysis Report

Buyer: GP
Style: 4074006
Introduction: Investigated on fabric over booking. During investigation found variation between
booking marker & production marker. Also found difference on BOM & fabric purchasing. For over
consumption & booking

Case 1, CAD: CAD have the size ratio from merchandiser for making Booking marker & production
marker. CAD consumption has variance between Booking marker & production marker. Booking marker
is 5616 M/PC when merchandising provides inquiry information.

What is the basis of increase %?

They said, sometime they need to adjust pattern on booking marker.

Fendi explanation:

1) In the booking stage, did not get the actual number of ratio, marker is not more than 6 yards

2) In the production marker stage of large quantity goods, according to the actual number of ratio, can
do 8 yards.

Why Marker does not have the date and the manufacturer's name in bulk marker? also ask for
spelling mistake of check(chack)?

Explanation: CAD will update the date and manufacturer name & also update marker spelling.

CAD
Order CAD bulk Process Bulk marker Booking marker Total need Qty according
Qty marker loss on bulk M/PC from Consumption to booking
consumption marker CAD M/PC Mtr
M/PC M/PC
13368 1.515 1.81% 1.5424 1.5616 20875.47

Booking Marker: Booking Marker is includied 3.5% as process loss. Which is given below…
# In booking marker there are two efficiecy .

1) One for net maker efficency (85.79%)

2) Second one for with marker allowance (83.6476%).
Solution: If the customer provides the Inquiry (bulk ration) data, CAD must be performed according to
the customer's ratio.

Case 2: Production marker is 1.5424 M/PC including marker allowance & wastage.
# Actual Fabric width was 59” inch.

Case 3, Merchandising: After making Booking marker by CAD, Merchandiser (BOM) team have the
booking marker & add 5% with booking marker consumption as process loss.

Merchandising: Why BOM add 5% as process loss?

Because they need make different sample for different purpose like

• For make buyer sample

• Showroom sample
• Washing sample
• Test sample
• OPI inspection sample etc.

Also added a few% of the time when there is no shortage of bulk production.

Merchandiser
BOM add 5% as Purchase booking Qty Total In-house Qty Purchase Over received Extra fabric
process loss Mtr Mtr Mtr Received
21919.24 21920 22101 181 0.83%

Solution:
1. Need standard for add process loss %.

2. The number of orders is different, the loss should also be changed, cannot follow the same standard,
should develop more detailed loss standards.

such as,

a) According to different fabrics, the characteristics of the fabric (knit, woven, synthetic fiber, cotton)
b) According to order quantity (100, 1000, 10000, 100000), the fixed loss should not increase with the
quantity of orders. Because, the fixed loss is flexible.

Case 4, purchase: Purchase is booking 21920 meters against this order. But Purchase received total
22101 meter. Purchase received almost 1% extra because of supplier minimum Quantity booking
allowance. Booking confirmation is given below….

Solution: Should have the fabric's Over ship/short ship tolerances standard.

Case 5, Cutting: Production marker is 1.5424 M/PC including marker & wastage. According to marker
cutting needs fabric 20319 meter. But cutting issued 21652 meters. Total cutting loss 6.6%. Because
cutting 468 pcs extra cutting for fabric reject & re-cut cutting (cutting & sewing rejection).

Cutting Sewing
Received Actual need for Cutting Cutting Fabric Fabric Total Cutting Extra Extra
Fabric cutting Qty PC Extra rejects Reject cutting extra cut fabric fabric
from AW according to received % PC qty PC qty. (cut in used
bulk marker Mtr panel & meter in %
Mtr sewing
replacement
21649.00 20618.80 13390.00 1030.20 1.220% 265 13820.00 430.00 663.23 3.06%

# What kind information provides to Store & AW for fabric withdraw?

# The cutting section first deals with the following issues…

• They provide PO’s with requisition which contain Order quantity, fabric requirement according
to booking consumption, color, fabric construction, reference number etc.
• Then requisition was signed by cutting supervisor(fabric), cutting in charge, cutting manager,
merchandiser concern, and for approve signed by DGM or related concern.
• After that the requisition to store and store concern check to the fabric availability in the
warehouse. If fabric available in AW then store make MR and sent AW which is approved by
store in charge.
# For extra fabric (Fabric reject, spot, sewing reject etc.):

• According to quality fabric check report (fabric cut panel/reject part report etc.) they were
replacing the fabric from AW
• They make a requisition with provided information of PO number, style number, color number,
fabrication etc.
• and flow the previous procedures.

Note: For Extra fabric they will get approval from authority (merchandiser & production head). But there
is no control point for extra.

Solution 4: MU should have to setup a standard control point on process loss in the cutting section.
Summary: In this investigation found that overall almost 9% are used for process loss moreover in hand
Stock quantity 415 meter. For this shipment quantity total used fabric 21652. & total process loss used
1781.60 meter against 20319.36 meter.

Booking Summary
Cutting Process Loss On Hand CAD BOM Purchase Total Over
Unit Cutting Cutting On Stock Over BOM Purchase Total Over
Cost process process hand % consumption add received over Booking
per Mtr loss loss % Qty process Extra Booking Value
Mtr mtr loss fabric % %
$
1030.20 1.695% +415 1.88% 2.984% 5.00% 1% 9%
2.55 $3,779.60

Comments: Throughout the process, problems have arisen in all four aspects.
1) CAD has received customer data, including production ratio. However, it does not perform CAD
rafts according to the ratio.
2) CAD has added 3.5% with pattern as process loss for production safety based on fabric shrinkage
report, fabric width etc. actually there is no standard to add %.
3) This is basis for the 5% increase in BOM for making different sample for different purpose like
for make buyer sample, Showroom sample Washing sample, Test sample, OPI inspection sample
etc. Also added a few% of the time when there is no shortage of bulk production. But there Is no
document support.
4) There is system or regulation for approved the increase of 1% in the Purchasing Department as
fabric's Over ship/short ship tolerances. But there is no document support standard. Only they
follow a margin as (1%-3%).