Professional Documents
Culture Documents
Study On Lead Time Delaying Factors in A
Study On Lead Time Delaying Factors in A
A Thesis Submitted To
Lecturer
May,2018
i
Study on Lead Time Delaying Factors in Apparel Supply Chain
Management: A Case Study on Order Execution Strategies of a Garments
Factory in Bangladesh
A Thesis Submitted To
Lecturer
Prepared By
Md.Mahfuzul Haque
ID-141-168-0-145
Md.Taslimul Hasan
ID-141-175-0-145
ii
May, 2018
TABLE OF CONTENTS
iii
LIST OF TABLES
iv
LIST OF FIGURES
v
DECLARATION
We hereby declare that this submission is our own work and that, to the best of our
knowledge and belief, it contains no material previously published or written by another
person nor material which has been accepted for the award of any degree of the university or
other institute of higher learning, except where due acknowledgment has been made in the
text.
Sincerly Yours,
Md.Mahfuzul Haque
ID-141-168-0-145
Md.Taslimul Hasan
ID-141-175-0-145
Batch: 141
Section: 4
vi
CERTIFICATE
This is certify that the thesis entitled; Study on Lead Time Delaying Factors in Apparel
Supply Chain Management: A Case Study on Order Execution Strategies of a Garments
Factory in Bangladesh submitted by (Md. Mahfuzul Haque (ID: 141-168-0-145),
Md.Taslimul Hasan (ID:141-175-0-145) is an authentic work carried out under my
supervision and guidance.
To the best of my knowledge, the matter embodied in the thesis has not been submitted to
elsewhere for the awarded of the degree.
Lecturer
Department of AMT, BUFT
vii
ACKNOWLEDGEMENT
The authors are thankful to the management of Unique Designers Ltd for providing the
facilities of this study.
viii
Abstract
In order to satisfy the ultimate customers, to meet the target shipment date and to
make the apparel sector more stable the Bangladesh garment industry is required to reduce
lead time during execution of an order placed by buyers. One way to decrease the lead
time required for producing RMG is to identify and analyze the causes which are
responsible to delay lead time. Lead time refers to the time required for supplying ordered
garment products after the export order has received. There are so many reasons for which
lead time can be delayed during order execution. For instance, factory capacity, poor work
force, raw material supply, wrong understanding about product details, miss and poor
communication between inter departments, longer approval period, lack of proper planning,
submission of poor quality item, re-work and re-submission etc. Among them longer
approval period, poor quality material and re-work and raw material supply are the major
ones. This study was based on the investigation of causes that can delay lead time during
order execution. The supplier factory was Unique Designers Limited (a Compliant Garments
Industry) that takes order from a renowned buying office located in Germany. The ultimate
customer of that buying office is also located in Germany who operates a number of stores in
several countries in the globe. All the orders are confirmed 3 months before the actual
shipment date. The study was carried out for a order having quantity 73890 pcs. Results
evinced that, due to longer approval period alone, up to 24 days need to be extended during
order execution. Besides, submission of poor quality sample and re-work lead to extent up to
22 days period. For the total order shipment, it was required 45 days extension with respect to
given shipment date.
Key Words: Lead time, Supply chain management, SMV and cold pigment dye.
ix
CHAPTER - 1
INTRODUCTION
1
By means of identifying the current supply chain management practices of some Bangladesh
garment companies, business areas for improvement can be identified. This in turn may
enable the formulation of better supply chain management practices that would
contribute to the continuous progress of the apparel industry. The development of the
supply chain management in this Bangladesh business sector can also likely strengthen its
connection with the international market. Aside from these benefits, the apparel industry
is able to achieve quick response through efficient supply chain management practices.
Order time management is one of the big issues for Bangladesh readymade garment
industry. Foreign buyer is likely to need short leading time for manufacturer the
apparel. In BD the lead time for apparel export varies between 90-120 days, whereas the time
for Sri Lanka is about 19-45 days, China 40-50 days and for India 50-70 days for
similar products. Due to the growing intensity of competition in both local and global
business sectors, several companies and service providers have realized the need to
develop more strategic approaches for managing supply chains. Therefore it appears that
in the present situation Bangladesh RMG industry will not be able to compete successfully
in the international market for the existence of unusually long lead time. The aim of this
study is to investigate and analyze the general reasons that are responsible to delay the target
lead time in apparel supply chain and placing a prospective solution against them.
LITERATURE REVIEW
1.2 MERCHANDISING
In the textile business, merchandisers have a particularly strong role because of the intensive
nature of product range. The process of buying and selling goods and services are termed as
merchandising. In other words, the area of a company that develops strategies to have the
right merchandise, at the right places, at the right time and at the right locations to meet the
needs and wants of the target customers. Effective merchandising saves time and money. It
coordinates various departments in the organization. Merchandising forms an effective
liaison with the buyers. It identifies and develops potential new buyers. It builds good relationship
with the buying houses and merchandiser attends to queries, order processing and evaluation of
apparel products. So merchandising is of greater importance in apparel industry. The term
merchandising means simply to buy and sell commodities for a profit. The role of merchandising
varies depending upon whether it is performed in retail or manufacturing context, Merchandising
2
involves the conceptualization, development, procurement of raw materials, sourcing of production
and delivery of product to buyers. The merchandiser must combine logical and analytical thinking
with initiative and expressive creativity.
As per the below figure the merchandiser must have the capability of utilizing the integrated
activity of right brain and left — brain functions to attain both analytical and creative thought
process. The merchandiser must be able to rigorously plan and control the functions involved
in developing. Products, sourcing it and getting it to the customer on time.
Myer defines merchandising as ‘Careful planning, capable styling and production or selecting
and buying, and effective selling”. By this definition, the primary mission of today’s
merchandisers seems unchanged. They continue to play an important role in the exchange process by
providing products for consumption.
3
CHAPTER – 2
MATERIAL & METHODS
2.1. Materials
The study was carried out on a cold pigment dyed knit full-sleeve t-shirt. Order
confirmation date from buying office was 05.3.15 and given shipment date for full quantity
was 30.7.15.The fabric used for making body portion of the garments was 100% cotton,
single jersey having RFD gsm-165, yarn count-Ne 30/1 (combed) and knitting gauge was
28gg. For neck binding lycra 1X1 rib was used whose composition was 95% cotton and 5%
elastane with gsm 220. Spun polyester sewing thread was used during sewing. Among three,
two styles had chest print with foil and remaining style had neck print only with front placket.
Total order quantity was 73890 pcs with following color wise break down and SMV.
Table 2.1: Order Breakdown Summary of Total Order
Style-A: consists of foil print at chest and back neck with shell fabric binding at neck having raw
edges. Style-B: Consists of placket with button at front part having rib binding at neck and sleeve
opening. Style-C: Having on foil print at chest and label print with pigment at back neck.
First Styling
Size set
and Lab dip Photo sample
sample
sample
4
Lab test: Which sample make by actual fabric & accessories and send to local lobotomy
(Buyer Nominated) to check fabric structure such as-GSM, Color fastness, Rubbing,
Shrinkage, printing,& embroidery.
Size set Sample: The purpose of the size set is to check fit of the garment in different sizes.
In this stage factory develops samples in multiple sizes. Generally, buyers ask size set sample
in jump sizes, like S, L, XXL. Buyer check size set sample and give feedback to factory if
anything need to be corrected.
Proto Sample: This sample is proto type of new design created by designers. This is the first
sample in product development stage. Proto sample is made to communicate the design of a
style or a line or to present garment structure. In proto samples fit and fabric detailing is not
been considered
Pre-production Sample: All the above samples are made in sampling department. Buyer
wants pre-production sample (PP sample) to be made in actual production line, so that
operators know what they are going to make. This sample is made with actual fabric, trims
and accessories and made by sewing line tailors. PP sample must be approved by buyer or
buying house merchants (technical persons) prior to proceeding actual production
Fit sample: Medium or large size have to send buyer for checking fits of dummy that is
called fit sample.
Production sample: First production garment will be send buyer for buyer satisfaction.
2.3. Production Procedure
Washing
Marker Marker
Spreading and re- Cutting
making laying
spreading
Printing for
Printing for Sorting and
style A & Dyeing Sewing
style B & C bundling
C
Button
attaching Finishing Shipment
for style B
5
Marker making.
Marker making is one of the most important tasks in garments manufacturing industry.
Accurate marker helps to reduce fabric wastage which ultimately reduces the cost of making
the garments. There are different types of marker making method used in readymade
garments sector, which are explained in this article.
Fabric Spreading:
Fabric spreading is a method where piles of fabric are spread a specific length and width wise
according to the garment marker measurement. A proper fabric spreading process in
garments may effect on productivity, quality, and cost of the production. Fabric spreading is
very important task to maintain proper shape of fabric before cutting of garments. Now I
would like to discuss about the process of fabric spreading in the apparel industry
To set an authoritative example or standard for others to follow. By intervening in this conflic
t, our country shall laydown the marker that terrorism cannot and will not go unpunished in a
ny corner of the Earth. Her breakthroughresearch laid down the marker for geneticists for dec
ades to come.
Cutting is one of the major process in garments manufacturing. Here garments parts are
cutting according to the pattern. In garments cutting department, a process flow chart have to
maintained to send the right measurement parts in the next process for making quality
garments. As its importance in garments manufacturing, a process flow chart for garments
cutting department is presented in this article.
6
Figure 2.4: Cutting
Dyeing process
Dyeing is the process in which a dye molecule gets thoroughly dissolved and dispersed in the
carrier. It can be in water or some other carrier also, but it must be able to penetrate and color
the textile materials in the process. In the textile dyeing process the dyeing is carried out at
different stages like polymer, yarn, fabric and garment or even at the product stage.
7
2.4. Items Approval Procedure: To get approval or comments for an item from
ultimate buyer, the following route needed to follow for the given buyer.
At the begining, Customer or main buyer send design sketch or Techpack to the buying house
for further step. Sometimes buyer or main customer send same information to the different
buying house or manufacturer to analyze Sample quality with Best price. Whwen a buying
house receive a file or parcel from customer than thay send to the Manufacturing company to
make a counter sample / Developed sample / proto sample with best price. After getting the
information manufacturer make a sample as like as buyer requirement which is given in the
techpack / original sample. Then the manufacturer send it to buying house for initial approval
or further comments. If there any comments written by the buying house then manufacturer
again make the sample based on the comment. Then manufacturer send it to buying houuse
for approval if buying house give it to the approval then they send to the Customer for
approval. After getting the sample main customer approve it or comments there if they think
any change. If the sample is getting approval from the main customer then they approve the
sample and give the permission for production via buying house.
8
CHAPTER – 3
Item Type Actual time (Days) required Usual time Delayed time
from submission to comments require (Days)
received (Days)
Metal Button 15 (1st sub) 9 6
17 (2nd sub) 9 8
First styling sample 18 8 10
Total Days 50 26 24
Table 2 reflects the effect of approval period on lead time delaying issues. There are
many causes that are responsible to delay the approval period. Time required to reach the
parcel for approval is also a major issued in this case. For example, the selected buying office
for this study is located in Europe for this reason it is required 3 days to reach the buying
office table. After that it goes to ultimate buyer to get final approval which is in the same
country. The time required to get approval is also depends item type and quantity. Usually
large volume of the parcel requires more time than shorter ones. Sometimes, approval period
may be delay due to high work pressure from buyer side. However, in the above mentioned
table, it shows that in case of metal button the usual approval period in 9 where it required 15
days to get approval as result 6 days extension needed here. In case of first styling sample,
the approval period needed was 18 days where the usual approval period in 8 days and that’s
why it required 10 days extra period. The metal button was sent for two times as it was failed
in the first submission.
9
3.2. Poor Quality Material and Re-work
Table 3: Extra Time (Days) Required for Revised Submission
10
3.3. Raw Material Supply and Shipment Date
The order tack pack or specification sheet was received one month before sending
first styling sample which means around 30 days period required to in-house fabric, sewing,
dyeing and so on. Besides, metal button sent in the second time for approval 45 days later
after getting 1st submission comments because it was imported from outside the country. This
indicates huge time was consumed to produce first sample only for raw material delay.
Besides, the actual shipment date was 20.7.15 but the achieved shipment for total quantity
was 4.9.15 which is also 45 days extended period. Table 1 & 2 reflects that the extended
shipment period is not equal to total delayed period. This is because several tasks take place
Simultaneously during order execution. For example, in the sampling stage sometimes two
different types e.g. size set and photo sample send together for approval. In this case, failing
of one category sample do not significantly delay lead time as later sample need to prepare
after getting the comments of former sample.
11
Simultaneously during order execution. For example, in the sampling stage sometimes two different types e.g. size set and photo sample send together for
approval. In this case, failing of one category sample do not significantly delay lead time as later sample need to prepare after getting the comments of former
sample.
Gantt Chart
Month-1 Month-2 Month-3 Month-4 Month-5 Month-6 Month-7
Activities Total Days
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Spec Recvd 1
Fabric sourcing 31
Sample preparation 10
Lab dip sample 11
Styling sample 19
Print strike-off 39
Metal Button 32
Size set preparation and parcel 21
Photo sample preparation and
11
parcel
PP sample 21
Original carton sample 10
Shipment 2
Total 208
12
The above mentioned Gantt chart reflects the total period (Days) required during order
execution along with particular activity break down. All the period mentioned here for
particular task is from parcel or sample submission to sample approval. Among all, some
activities performed parallel to each other in order to reduce time period. From the table it is
noticeable that the total time required to execute the total order was 208 days which indicates
a longer lead time frame. Besides, it is also mentionable that, 31 days required sourcing the
fabric which can be one of the major causes for lead time extension. Without these, time
required for print strike-off and metal button were also so longer. However among all very
few days were required for original carton sample approval from buyer after which shipment
of the goods were done.
13
CHAPTER – 4
CONCLUSION
Bangladesh has entered in the quota free market after 2005.After entering into the free
market, Bangladesh apparels sector face competition from others competitor .Analysis
has been found that among the responsible causes for lead time issues, delaying approval
period, poor quality material re-work and raw material supply are the most important. Due to
these reasons the final shipment date needed to extent 45 days which is equal to total lead
time to execute a small order. As a result this sector is facing long lead time i.e. more
than 120 days to execute a particular order .
Due to factory accessibility and time shorting, it was not possible to take observation
of merchandising process.
We didn’t done the work due to lack of desired time.
We worked on only one (1) order due to short timing but we should did it more than
10 orders to analyze the real situation.
14
REFERENCES
15
14. Adewole, A. (2005). Developing a strategic framework for efficient and effective
optimisation of information in the supply chains of the UK clothing manufacture
industry. Supply chain management: An international Journal, 10(5), 357-366.
15. Hilletofth, P., & Hilmola, O. P. (2008). Supply chain management in fashion and
textile industry. International Journal of Services Sciences, 1(2), 127-147.
16. Palpacuer, F., Gibbon, P., & Thomsen, L. (2005). New challenges for developing
country suppliers in global clothing chains: a comparative European perspective.
World development, 33(3), 409-430.
17. Lee, Y., & Kincade, D. H. (2003). US apparel manufacturers' company characteristic
differences based on SCM activities. Journal of Fashion Marketing and Management:
An International Journal, 7(1), 31-48.
18. Haque, K. M. A., Hossain, M. M., Hossain, M. S. J., Islam, M. A., Hassan, M.,
Shamshuzzaman, M., & Hossain, M. D. (2011). Performance Evaluation of
Bangladeshi Apparel and Textile Supply Chain Network, A Case Study. Performance
Evaluation, 1(1), 211-218.
19. Islam, M. S., & Liang, M. G. Q. (2010). Supply Chain Management on Apparel Order
Process: A Case Study In Bangladesh Garment Industry. Asian Journal of Business
and Management Sciences, 2(8), 60-72.
16