Mid Term Exam , Spring 2020

Date-3rd-July-2020
Name-

ID-

Section-KB(Batch-37th-EVE)
Subject Name: Production Planning & Control (Tex-401)
Page-2 to 15

Question No-1- Discuss the necessity of production planning and

Control in an organization.
1. Utilizes resources effectively

Production planning and control result in effective utilization of plant capacity, equipment and
resources.
It results in low-cost and high-returns for the organization.

2. Makes flow of production steady

Production planning and control ensure a regular and steady flow of production.
All machines are put to their optimum use.

This helps in achieving a continuous production of goods.

This also helps to provide a regular supply of goods to consumers.

3. Estimates production resources

reduction planning and control help to estimate the resources like men, materials, machines,
etc.

The estimate is made based on sales forecast.

So, production is planned to meet sales requirements.

4. Maintains necessary stock levels

Production planning and control prevent over-stocking and under-stocking of materials.

Necessary stocks are maintained.

Stock of raw-material is maintained at a proper level in order to meet production demands.

Stock of finished goods is also maintained to meet regular demands from customers.

5. Coordinates departmental activities

Production planning and control helps to co-ordinate the activities of different departments.

Consider, for an example, the marketing department co-ordinates with production department
to sell the goods.
This results in profit to the organization.

6. Minimizes wastage of resources

Production planning and control ensure proper inventory of raw-materials and effective
handling of materials.

This helps to minimize the wastage of raw materials.

It also ensures production of quality goods. This results in minimal rejects.

So, it results in minimum wastage.

7. Improves labor efficiency

There is maximum utilization of manpower.

Training is provided to the workers.

The profits are shared with the workers in form of increased wages and other incentives.

Workers are motivated to perform their best. This results in improved labor efficiency.

8. Helps to face competition

Production planning and control help to give delivery of goods to customers in time.

This is because of regular flow of quality production.

So, the company can face competition effectively, and it can capture the market.

9. Provides better work environment

Production planning and control provide a better work environment to workers.

They get better work facilities, proper working hours, leave and holidays, increased wages and
other incentives.

10. Facilitates quality improvement

Production planning and control facilitate quality improvement because the production is
checked regularly.

Quality consciousness is developed among the employees through training, suggestion

schemes, quality circles, etc.

11. Customer satisfaction

Production planning and control help to give a regular supply of goods and services to
consumers at competitive market price.

This results in customer satisfaction.

12. Reduces production costs

Production planning and control make optimum utilization of resources, and it minimizes
wastage.

It also maintains an optimal level of inventories.

Overall, this reduces the production costs.

Flow Chart of Garments Manufacturing Process

Garments Manufacturing:

A complete garment has to face several processes from its order receiving to shipment. During
garments manufacturing, a process flow chart must be needed to complete an order easily.
Also a process flow chart helps to understand a garment manufacturing method that how the
raw materials are converted into the wearable garments

Garments Manufacturing:

A complete garment has to face several processes from its order receiving to shipment. During
garments manufacturing, a process flow chart must be needed to complete an order easily.
Also a process flow chart helps to understand a garment manufacturing method that how the
raw materials are converted into the wearable garments

Flow Chart of Garments Manufacturing Process / Technology:

A basic garment manufacturing flow chart is presented in the below:

Design

Pattern Making

Fit Sample Making

↓
 Production Pattern Making

Grading

Marker Making

Fabric Spreading

Fabric Cutting

Cutting Parts Sorting or Bundling

Sewing

Garments Inspection

Garments Ironing and Finishing

Final Inspection

Garments Packing

Cartooning

↓
 Shipment

Each process of garments manufacturing flow chart is discussed in the below with the details:

1. Design:

Design is provided by the buyer. After placing an order buyer send the technical sheet and art-
work of an order to the merchandiser. This process is done by both manually or by using
computer.

2. Pattern Making:

By following technical sheet and art-work, pattern of each garment style should be made. It’s
done by both manually and by using computerized method.

3. Fit Sample Making:

The main target of making a fit sample is to follow the details instruction about that garments
style. After making it’s sent to the buyer to rectify. It’s done by manually.

4. Production Pattern Making:

For bulk production, allowance added here with net dimension. Production Pattern Making is
done by both manually and by using computer.

5. Grading:

During an order confirmation, the buyer suggests about the size ratio of that order. So that
order should be graded according to the buyer’s instruction. Grading is done by manually or by
using computer.

6. Marker Making:

Marker is a very thin paper which contains all the parts of a particular garment. To make the
cutting process easy, it’s must be needed. Marker making process can be done by both
manually and by using computer.

7. Fabric Spreading:

To cut the fabric properly fabric is spread in lay form. Fabric Spreading is done by manually or
by using computerized method.

8. Fabric Cutting:
Fabrics have to cut here according to marker of garments. Fabric Cutting process is done by
using manual method or computerized method.

9. Cutting Parts Sorting or Bundling:

Here, cutting parts have to sort out or make bundling to send these easily into the next process.
This process is done by manually.

10. Sewing:

All the parts of a garment are joined here to make a complete garment. Sewing process is done
by manually.

11. Garments Inspection:

After completing sewing, inspection should be done here to make fault free garments.
Garments Inspection is done by using manual method.

12. Garments Ironing and Finishing:

Here garments are treated by steam; also required finishing should be completed here. This
process is done by using manual method.

13. Final Inspection:

Finally the complete garments are inspected here according to the buyer’s specification. Final
Inspection is done by manual method.

14. Garments Packing:

Complete garments are packed here by using buyers instructed poly bag. Garments packing are
done by using manual method.

15. Cartooning:

To minimize the damages of garments, all the garments have to cartooned by maintaining
buyers instruction. This process is done by manually.

16. Shipment:

After completing all the required processes it’s finally send to the buyer.
The Role of Human Resource Management in Organizations

Human resources managers oversee the most important component of a successful business –
a productive, thriving workforce. This requires viewing people as human assets, not costs to the
organization. As with any other asset, a talented workforce can be used strategically to add
value to an organization.

Strategic Role of HRM

The human resources management team suggests to the management team how to
strategically manage people as business resources. This includes recruiting and hiring
employees with specific skill sets to meet the company's current and future goals, coordinating
employee benefits and suggesting employee training and development strategies. In this way,
HR professionals are consultants, not workers in an isolated business function; they advise
managers on many issues related to employees and how they help the organization achieve its
goals.

Developing Skills for the Future

At all levels of the organization, managers and HR professionals work together to develop
employees' skills. For example, HR professionals advise managers and supervisors how to assign
employees to different roles in the organization, thereby helping the organization adapt
successfully to its environment. In a flexible organization, employees are shifted around to
different business functions based on business priorities and employee preferences

Building Loyalty and Commitment

HR professionals also suggest strategies for increasing employee commitment to the

organization. This begins with using the recruiting process or matching employees with the
right positions according to their qualifications. Once hired, employees must be committed to
their jobs and feel challenged throughout the year by their manager.

Building a Talent Pipeline

An HRM team helps a business develop a competitive advantage, which involves building the
capacity of the company so it can offer a unique set of goods or services to its customers. To
build the an effective human resources, private companies compete with each other in a "war
for talent." It's not just about hiring talent; this game is about keeping people and helping them
grow and stay committed over the long term.

Staying Current and Competitive

Human resource management requires strategic planning to address not only the changing
needs of an employer but also a constantly shifting competitive job market. Employee benefit
packages must be continually assessed for costs to the employer. Tweaking the packages also
provides an opportunity to increase employee retention through the addition of vacation days,
flexible working arrangements or retirement plan enhancements. For example, in recent years
many human resource professionals have overseen the addition of preventative health
components to traditional health plans for both employment recruitment and retention efforts.

Importance of Production Function and Production Management

Every successful organization has a line function as well as a support function that must be
efficient. But the production comes under the line function category which has a direct impact
on the customers. Hence it dictates customer experience. Customer experience is critical for
the survival of any organization. Therefore line function to a large extent determines the future
of the company in question.

What’s the Aim of the Production Function?

The goal of the production function is to add value. Be it product or services; the idea is to
create something that will strengthen the relationship between the organization and
customers. But this cannot only be made possible by the production department.

The marketing people also have a huge role to play in this. They are the ones that will distribute
the product to potential buyers and should have the capacity to inform the production
department of what customers or consumers would prefer.

1. Production Control

Here the manager supervises and directs the production process. He or she also must find out
and ensure the right production plan is followed during the production process. If there are
deviations, the production manager has to take the right steps to correct them.

2. Scheduling

This function is critical in every organization. It has to do with planning when the actual
production would begin and ends.

3. Cost and Quality Control

Every company knows how essential quality control and price are. Customers are not just
looking for the best products. But they also want to have them at the lowest possible price.
Quality control is an essential duty the production manager has to perform. It entails multiple
checks performed on the product to ensure quality is intact.
4. Maintenance of Machines

Production management also entails making sure that instruments used are in good working
condition. And that means replacing the ones that are underperforming or changing damaged
parts to enable the machine to function optimally.

Why Production Management is so Important

Production management is relevant to the firm’s success in many ways. Used efficiently, it can
lead to numerous accomplishments which will take the business to a great height. Below is the
importance of production management.

1. Helps the Firm to Accomplish its Objectives

Production management helps the firm to achieve its sales and business objectives by
producing goods and services that meet the need of consumers. Sales and profit will increase if
the product produced satisfies the customers’ needs.

2. Boost Business Reputation and Goodwill

A satisfied customer will undoubtedly want to repeat patronage. That’s why businesses should
ensure that quality products are delivered continuously. Making sure that your customers are
always happy can also boost business reputation.

3. Reduces the Cost of Production

Production management ensures that resources are used judiciously, without compromising on
quality. In other words, the business will continue to deliver quality products and sell at a
convenient price to customers. But this can only be possible in a situation where the input and
output are maximized.

Role and importance of efficient accountants in RMG secto

The finance team will analyse the business trend and profitability, utilisation of available
resources and assets and mobilise the capacity utilisation. The accounts team will keep the
recording system updated and readily available and also extend support by
providing financial reports as per requirement.

Generally, we all say, finance is the heart of any company, but do we believe it wholeheartedly?
Maybe the answer is "No". Why? As an argument for such an answer, it may be mentioned that
in our country, majority of the company owners think managing finances is such a simple and
easy task that anyone from any discipline of study can do it. But this is not true and problems
start arising from this notion. If a person does not take care of his/her heart, it can create
problems at any time in any stage of life, causing huge losses. Similarly, the finance & accounts
department acts as the heart of an organization. If the department cannot be handled
efficiently and smartly, the company can incur financial losses at any time.

A finance department dominated by persons without accounting background cannot meet the
regulatory requirements in any company, but a qualified and professional team can. The
finance department will prepare reports on the fund status of a company on a regular basis i.e
monthly, quarterly or annually and analyses the budget with respect to the actual financial
statements. The finance department will also bring any fund deficiency situation to the notice
of the management in advance to take necessary action to tackle the adverse business
situation.

In general practice, the finance department remain very busy with day-to-day activities, salary
and wages payment and correspondence with banks. At the year-end, they remain busy closing
the entire compliance gap by putting in extra efforts. All such hassles result from a lack of
proper knowledge and information about relevant regulatory requirements, which can easily be
solved at the transaction stage by collecting and maintaining proper documentation.

Most commonly, we cannot see the difference between the finance and the accounts
departments. In a company, these two departments are not treated as separate departments,
even though there are significant differences between them. Finance and accounting are two
separate disciplines that are often combined together in a business organisation. At a high level,
finance is the science of planning the distribution of assets of a business, while accounting is the
art of recording and reporting financial transactions.

So, a company needs two experienced wings to manage its financial activities effectively and
efficiently. The finance team will analyse the business trend and profitability, utilisation of
available resources and assets and mobilise the capacity utilisation. The accounts team will
keep the recording system updated and readily available and also extend support by providing
financial reports as per requirement.

In the Readymade Garments (RMG) sector, accountants have to address too many compliance
issues relatively different from other companies, particularly in the relevant business areas.

These issues are buyers' requirements, Income Tax (IT) and Value Added Tax (VAT), issues
related to the Register of Joint Stock Companies (RJSC), source tax deduction from suppliers,
customs clearance procedure, Letter of Credit (L/C) formalities and other banking
correspondence and preparation of monthly, quarterly, six-monthly and annual financial
statements.

The financial statements should be prepared in line with the International Accounting
Standards (IAS) and also the Bangladesh Accounting Standards (BAS). Is it so easy to manage all
such regulatory requirements and, at the same time, management requirements? Undoubtedly
it is tough, if qualified CFO or finance director or finance manager or finance team is not
recruited according to the business plan and forecast. A qualified finance team must have
persons with accounting background or finance background with Chartered Accountancy (CA)
Course completed/partially completed level of CA. Preferably a Chartered Accountant or Cost
Accountant can be the right professionals, if businesses can afford.

Nowadays, the RMG sector has been facing so many global challenges along with competitive
threat and compliance with regulatory requirements. Timely VAT payment, submission of
Income Tax returns, updating RJSC records are the most common compliances issues. But
currently it's very difficult to meet the regulatory bodies' requirements without submitting
relevant documents. If the finance team does not have forward-thinking persons, it would be
very difficult to collect necessary information and meet the regulatory requirements in time. So,
the finance team must have perfect knowledge about the transaction, dealings and any
communication with the third party in order to complete their task properly.

The finance team is supposed to give constructive and effective support to the management of
a company regarding the above-mentioned issues. To meet the buyers' requirements and
explore new markets, management needs regular analysis which the finance team should
prepare with the collaboration of merchandising department.

So, financial data, updated with each regulatory body, is very essential to sustain in the
competitive global market. The RMG sector made significant contribution -- 12.36 per cent -- to
the Gross Domestic Product (GDP) of Bangladesh and accounted for 80.7 per cent of the total
export earnings in the financial year '17, becoming the biggest strategic sector of the country.

So, the importance of efficient and experienced accountants in the RMG sector is
unquestionable. It is high time for the RMG industry to have efficient, dedicated and
knowledgeable finance teams and prepare in advance to face the global threat.

What Are the IT Department's Responsibilities

The IT department oversees the installation and maintenance of computer network systems

within a company. ... Its primary function is to ensure that the network runs smoothly. The
IT department must evaluate and install the proper hardware and software necessary to keep
the network functioning properly.

Five IT Functions in an Organization

With the prominence and advancement of technology, it has inevitably become a large part of
any functioning company's operations. It is virtually impossible for a business to thrive without
interacting with some technology during day-to-day operations. From global corporations with
complex systems and networks to small businesses that may only have a single computer and
cash register, technology is always present. Information technology (IT) describes the use of
technology to solve business and organizational problems. Computers are used to store,
recover, transmit, process and secure all forms of electronic data and information. The
following are five IT functions in an organization.
Expanding Means of Communication
Long before computers and information technology, communication was a vital part of any
business. IT, however, has redefined the way we communicate with each other. Seemingly
everyone has a smartphone nowadays, and it is possible to contact anyone around the world
within a few clicks. Not only is this convenient for communication between employees of the
same company, but it also opens the communication lines between companies - making for
more efficient partnerships and collaborations.
IT allows an organization to communicate by multiple means, including phone, email, video
conferencing and social media. Phone and email were the two primary means of
communicating in the early days of IT, but the introduction of video conferencing has led to an
increase of virtual meetings that allow employees to save time and companies to save money
on in-person meetings.
The rise of social media has changed how companies communicate with their customers.
Companies can use social media for advertising or customer service, as they are able to talk to
customers in a way that makes them feel more connected with the brand.
Data Collection and Management
Data has become one of the most valuable resources a company can have. Many companies -
Facebook and Google, for example - have built their business models around collecting users'
data and using it to sell advertisements.
Even if a company is not a technology company, it still needs data such as sales data, financial
records, inventory information and customer records. IT systems allow an organization to
collect, store, manage and utilize data.
The days of storing information on paper in rows of filing cabinets are gone; databases store
vast amounts of information for businesses. And with the introduction of cloud technology, this
information can often be accessed at anytime from anywhere.
IT tools allow organizations to take raw data and put it in a format that allows for analyzing.

Information Security Management

Company IT departments should also be tasked with putting information security measures in
place to keep the company's data secure and free from hackers. Not only can data leaks lead to
fines and regulatory action, but they also put an organization's reputation at risk.
Consumers do not feel comfortable giving their data away to companies who cannot keep it
secure. IT security measures prevent this from happening.
Customer Relations Management
IT is being used to improve the way organizations interact with their customers. Specifically,
customer relationship management systems - often referred to simply as CRM in the business
world - track and organize every interaction a company has with its current and potential
customers. These systems keep track of where an individual may be in the sales pipeline and
aggregates all information so the company can provide a better user experience. Without IT,
this process would not be nearly as effective.
Improvement of Processes
One of the most valuable functions of IT in an organization is improving the efficiency of
operational processes. IT systems are put in place to eliminate wasteful and useless activities
that can be done better through the use of technology. For example, companies can now
onboard and train new employees through online training sessions and modules - saving the
company time and money.
Page-16 to 18

Question No-2- Select a factory or product of your choice & discuss

with a clearly labeled diagram the whole production process.

Denim Shirt
A shirt can be made in a Tailoring Shop or in a Factory using industrial sewing machines.
Wherever the shirt is made, major processes remain same. It starts with getting an order,
followed by sourcing of materials, cutting fabrics, stitching shirt components, finishing and
packing, and the process ends once an order is shipped.

Shirt manufacturing process is explained in both scenarios.

Order Receiving

Shirt making factories get orders from brands, international buyers or retails stores. Where
tailoring shops get order directly from customers. If you consider export order manufacturing,
there are many preproduction processes followed by factories. Like sampling of the shirt, fabric
development (factories could not just buy fabric from the market, but they need to develop
fabric as per customer requirement), lap dip approval, pre-production sampling, approval of
fabric and trims, development of various trims etc. Factories get an order for multiple sizes (S,
M, L, and XL) and with size wise order ratio.

Material Sourcing

Tailoring shop: Customers purchase fabric and give to tailor for making shirt for them. Other
materials like sewing threads, buttons, fusible interlinings and sourced by shop owner. Formal
packing is not necessary here, so no packing accessories are purchased.

In Factories: Factories normally makes hundreds of shirts for same fabric and same designs.
They make shirts for export market or for domestic brands. Material requirement for the order
is calculated and sourcing is done directly from mills and fabric suppliers. All materials are
purchased by factory – woven fabrics, trims and accessories. Factory takes about one month to
procure fabrics.

Material Inspection

Fabric and trims are checked by qualified checkers. Segregation of defective materials is done
from good materials. The purpose is to get quality shirts after stitching and finishing. Factories
use fabric checking machines to speed up checking process and make quality checking process
more effective. Sometimes factories get fabrics with shade variation. They segregate different
shades and make shade bands. Later cutting is done shade wise (lot wise). The purpose is to
eliminate fabric shade variation in shirts.

Pattern Making

In a tailoring shop shirts are made according to wearer's measurement (Made to Measure).
Each shirt is unique. So normally shirt patterns are not made in tailoring shop. Instead tailors
(master) directly mark on the fabric and cut fabric.

In factories where hundreds of garments are made for same size and same measurement,
pattern is essential. Sample shirts are made first to check that patterns are made correctly. As
factory needs to make shirts for different sizes, pattern grading is done and patterns are made
for all sizes. Pattern grading can be done using CAD system.

Shirt Stitching

Tailors or sewing operators make shirts using sewing machine(s). First, Shirt parts are made.

Parts making: Collar, Cuff, Pockets, Front part, and Sleeves are made separately. Main label
(Brand labels) is attached inside back yoke or collar band during part preparation.

Assembly: Once different parts of a shirt are made, shirt parts are assembled. In assembly
section, wash care label attached to side seam.

In industrial production shirts are made in sewing lines. In a tailoring shop, full shirt is made by
one person. There are various options for setting a sewing line for shirt manufacturing with
different line layout and production method. In assembly line instead of single piece, shirt are
made bundle wise. And most interesting thing is that one operator only sews one operation. 40
to 45 tailors are involved making the complete shirt. Different types of sewing machines are
used in a sewing line to make the shirt with consistency in quality and higher speed.

Also See: List of operations of a Full Sleeve Formal Shirt

Shirt Finishing 

In finishing stage, buttons are attached to collar, cuffs and in front placket. Button holing is
done on these parts. Uncut thread tails are trimmed. Other finishing sub-processes include
stain removing, alteration of defective shirts and pressing. In case washing of shirt is required,
factories wash shirt to give desired hand feel and aesthetic look.
In tailoring shop shirt washing process does not exist. Still in tailoring shops button holing and
button attaching operations are done by hand (cost of button holing and button attaching
machine is not cost effective for tailoring shops).

Quality Inspection

Shirts are finished and ready to fold and pack. Before packing, shirts are checked to ensure that
no defective shirts are sent to the customer. If a defective garment is found, alteration or
repairing is done.

Shirt Packing

This is the last process for the manufacturers in shirt making. All shirts are folded nicely using
cardboard, tissue paper, pins etc. Hangtag and Price tags are attached to the folded shirts.
Folded shirts are packed into a polythene bag and then packed into a cardboard box. Packing of
a shirt is done as per buyer's instruction.

Shipping of Shirts to Customer

Packed shirts are sent to customers. Retailers display shirts in their shop from where we buy
our shirts. Shirt making process is complete here.

Page-19 to 24

Question No-03: Discuss the changes in modern day production

planning in the last 15 years.

NTRODUCTION
Nowadays changes have become
an integral part of the activity
of any
organisation. As a result of
environment dynamics, changes
have become a
continuous process without a
point of destination. Moreover,
with the rapid
technological development,
globalisation of economy, decrease
in the product life cycle
and increased customer demands
there is an increased pressure on
making changes.
Changes constitute a means of
adapting an organisation to the
needs of the
environment, ensure its
development and provide
opportunities for success on the
market. Every change disturbs
the current status quo of an
organisation and the
process of its introduction carries a
certain risk. Therefore, any change
needs thorough
understanding and acceptance of
its inevitability, as well as full
involvement of all the
staff in the process of its
preparation and implementation.
Important factors which
determine the success in
management include the ability
to identify the factors of a
change which are important in
terms of the area of the change,
the choice of the best
type of change in a particular
situation, defining the aims of
the change, appropriate
preparation for the change, the
ability to create positive
attitudes of the staff, good
timing of the change and the right
method of its implementation.
 Changes apply to all areas of
activity of an organisation. Thus,
they also relate
to the process of production
planning and control. The aim of
production planning and
control is to ensure efficient
production process and effective
adjustment of this
process to the changes in the
environment [2]. Production
planning and control
involves actions related, amongst
others, to performance
management, production load
of individual resources and
workers and task scheduling and
sequencing. The method
in which this process is
conducted determines the length
of the production cycle, the
volume of output, meeting order
deadlines, the stock levels and
production costs and
therefore has a great impact on
the effective functioning of an
organisation. For this
reason, change management in
the process of production
planning and control and
skilful adjustment of this
process to the changing market
needs and environmental
dynamics is of utmost importance
NTRODUCTION
Nowadays changes have become
an integral part of the activity
of any
organisation. As a result of
environment dynamics, changes
have become a
continuous process without a
point of destination. Moreover,
with the rapid
technological development,
globalisation of economy, decrease
in the product life cycle
and increased customer demands
there is an increased pressure on
making changes.
Changes constitute a means of
adapting an organisation to the
needs of the
environment, ensure its
development and provide
opportunities for success on the
market. Every change disturbs
the current status quo of an
organisation and the
process of its introduction carries a
certain risk. Therefore, any change
needs thorough
understanding and acceptance of
its inevitability, as well as full
involvement of all the
staff in the process of its
preparation and implementation.
Important factors which
determine the success in
management include the ability
to identify the factors of a
change which are important in
terms of the area of the change,
the choice of the best
type of change in a particular
situation, defining the aims of
the change, appropriate
preparation for the change, the
ability to create positive
attitudes of the staff, good
timing of the change and the right
method of its implementation.
Changes apply to all areas of
activity of an organisation. Thus,
they also relate
to the process of production
planning and control. The aim of
production planning and
control is to ensure efficient
production process and effective
adjustment of this
process to the changes in the
environment [2]. Production
planning and control
involves actions related, amongst
others, to performance
management, production load
of individual resources and
workers and task scheduling and
sequencing. The method
in which this process is
conducted determines the length
of the production cycle, the
volume of output, meeting order
deadlines, the stock levels and
production costs and
therefore has a great impact on
the effective functioning of an
organisation. For this
reason, change management in
the process of production
planning and control and
skilful adjustment of this
process to the changing market
needs and environmental
dynamics is of utmost importance
NTRODUCTION
Nowadays changes have become
an integral part of the activity
of any
organisation. As a result of
environment dynamics, changes
have become a
continuous process without a
point of destination. Moreover,
with the rapid
technological development,
globalisation of economy, decrease
in the product life cycle
and increased customer demands
there is an increased pressure on
making changes.
Changes constitute a means of
adapting an organisation to the
needs of the
environment, ensure its
development and provide
opportunities for success on the
market. Every change disturbs
the current status quo of an
organisation and the
process of its introduction carries a
certain risk. Therefore, any change
needs thorough
understanding and acceptance of
its inevitability, as well as full
involvement of all the
staff in the process of its
preparation and implementation.
Important factors which
determine the success in
management include the ability
to identify the factors of a
change which are important in
terms of the area of the change,
the choice of the best
type of change in a particular
situation, defining the aims of
the change, appropriate
preparation for the change, the
ability to create positive
attitudes of the staff, good
timing of the change and the right
method of its implementation.
Changes apply to all areas of
activity of an organisation. Thus,
they also relate
to the process of production
planning and control. The aim of
production planning and
control is to ensure efficient
production process and effective
adjustment of this
process to the changes in the
environment [2]. Production
planning and control
involves actions related, amongst
others, to performance
management, production load
of individual resources and
workers and task scheduling and
sequencing. The method
in which this process is
conducted determines the length
of the production cycle, the
volume of output, meeting order
deadlines, the stock levels and
production costs and
therefore has a great impact on
the effective functioning of an
organisation. For this
reason, change management in
the process of production
planning and control and
skilful adjustment of this
process to the changing market
needs and environmental
dynamics is of utmost importance.
Introduction:
Nowadays changes have become an integral part of the activity of any organization. As a result
of environment dynamics, changes have become a continuous process without a point of
destination. Moreover, with the rapid technological development, globalization of economy,
decrease in the product life cycle and increased customer demands there is an increased
pressure on making changes. Changes constitute a means of adapting an organization to the
needs of the environment, ensure its development and provide opportunities for success on
the market. Every change disturbs the current status quo of an organization and the process of
its introduction carries a certain risk. Therefore, any change needs thorough understanding and
acceptance of its inevitability, as well as full involvement of all the staff in the process of its
preparation and implementation.

Change in the process of production planning & control:

Changes in the process of production planning and control involve transformation of the
method of performance of assigned tasks and therefore they can be classified as process
changes. Relationships between changes in production planning and control and changes in the
other areas of organization. The relationships between these types of changes for the process
of production planning and control. Changes in the process of production planning and control
may arise from organizational changes (e.g. from process-centered to product-centered) ,
technical changes (e.g. the introduction of integrated information systems), culture changes
(e.g. changes in the relations between a company and material supplier that enable full co-
operation result in changes in the method of production planning), cost changes (e.g. reduction
in the cost of inventory requires new methods of production planning). Similarly, changes in
one of the areas (organizational, cost, technical or culture changes) entail changes in the area of
production planning and control and also changes in the other areas of business are
functioning.

Types of change in production planning & control:

The character of these changes is very complex. The changes apply to different areas of
business activity, they are created by different factors, introduced with a various intensity and
they bring about various effects. Presents classification of these changes into types from
different aspects, using a number of classifiers. The typology presented refers to changes
introduced in an enterprise. Based on the considerations contained in the literature, a typology
of changes in the process of production planning and control can also be presented. Using the
approach proposed changes in the process of production planning and control can be classified
by considering them in terms of cause and effect. This approach stresses the need to identify
the possible causes of changes in the process of production planning and control and to adapt
the type of change and method of its introduction to these causes. The decision to implement
the change entails the need to estimate the effectiveness of the change and its possible results.
The cause-and-effect relationship makes it possible to classify changes in the process of
production planning and control according to four basic criteria: the source and aim of changes,
the content of changes, the method of introduction of changes and the results of changes. A
more detailed typology of changes can also be presented, by identifying detailed classifiers
within each of the main classifiers. The main and detailed classifiers of changes in the process of
production planning and control are given in Fig. 2. Change in production planning and control
Organizational change Culture change Cost change Technical change 310 Fig. 2 Classifiers of
changes in the process of production planning and control Source: Adopted from [7]

With regard to the source of change, changes in the process of production planning and control
can be divided into:

• Spontaneous (direct, voluntary) changes initiated by members of the staff involved in

production planning and control (e.g. planners, logistics engineers, production managers). On
the basis of the environment analysis, analysis of their own capabilities or analysis of the
operations performed within the process of production planning and control, the staff identify
the need for changes, plan appropriate changes and implement them.

• Imposed changes (indirect, compulsory), which are generated by the environment of the
process of production planning and control. The need to introduce changes arises both from
the enterprise itself (e.g. implemented changes in the organization of production) and from the
environment of the enterprise (e.g. the need to satisfy new requirements of customers).
According to their aim, changes can be divided into:

• Conservative changes, which preserve the previous level of efficiency of the process of
production planning and control.

• Progressive changes, which lead to an enhanced level of efficiency of the process of

production planning and control, which in turn makes it possible to find new ways of
development of the whole organization. The efficiency of the system of production planning
and control is subject to multicriteria assessment. Important criteria in this assessment are [17]:
Aim and source of change Content of change Method of change introduction Results of change
Source of change Aim of change Method of preparation Originality of change Scope of change
Method of implementation Speed of reaction Time of implementation Effectiveness of change
Economic effects of change 311

• Sensitivity, which is a measure of the system’s ability to react to changes of the real situation,
• Speed of reaction, which is defined as the time from the reception of the information about
the need for correction to the introduction of this correction,

•Flexibility, which is defined as the ability to make changes,

• Whether or not the system functions according to the user’s requirements. Any change in the
system of production planning and control that results in an improvement in one of the above
mentioned criteria is a progressive change. The faster a system reacts to the impulses that
cause changes, the smaller the input signal change that causes a reaction (reaction will occur
e.g. in response to a slight change in demand or finished goods stock level), the wider the range
of possible changes (which will enable product range and output flexibility) and the better the
system’s adjustment to the users’ needs, the greater its efficiency. Every such change is a
desirable change to the system, as it will contribute to the customer’s satisfaction and the
effectiveness of organization. According to the method of change preparation we can identify: •
Adjustment changes, whereby the changes in the process of production planning and control
are imposed by a new situation in the environment of this process. For this reason, such
changes occur ex post and are usually delayed, fragmentary and hastily introduced, which often
negatively affects their effectiveness.
•Adaptive (reproductive) changes, which involve the application of known solutions in
production planning and control and their adaptation to the needs of the organization. They
may involve adding new elements in the process of production planning and control (e.g. the
application of material requirement planning, MRP, in the process of production capacity
planning) or modification of the existing solutions (e.g. adjustment of the method of
development of the Master Production Schedule, MPS, to the type of product)

•Innovative changes, which involve the introduction of new, unique solutions to the process of
production planning and control, never used before (an example of such a change was the
introduction of kanban system in the process of production control by Toyota) Such changes
are creative and present a great challenge for the organization. Their implementation usually
significantly improves the effectiveness of the process of production planning and control. 312
With regard to the scope of changes, we can identify:

•Comprehensive changes, which apply to the entire process of production planning and
control, from demand forecasting by Sales and Operation Planning (S&OP), Master Production
Scheduling (MPS), Material Requirement Planning, Resource and Capacity Planning to
production control,

•Partial changes, which apply only to a fragment of the process of production planning and
control, for example changes in the method of compilation of demand forecast information.
Partial changes are easier to implement, but they produce less significant effects than
comprehensive changes. Comprehensive changes, however, need more time. Changes in the
process of production planning and control also differ in the method of their introduction.
According to the speed of reaction to the factors that cause changes, we can identify:

• changes made without delay, directly following the occurrence of the factor that causes them,
• changes made with a delay (with an inertia cycle), which take a certain period of time to be
introduced. The speed of reaction of the system of planning and control to factors the cause a
change is greatly affected by some system parameters, such as its sensitivity and flexibility [3].
The values of these parameters depend above all on the batch size, production cycle length,
correct flow of information and promptness of order execution, as well as on the stock level
and the extent to which the stock is balanced by demand. The smaller the batch size, the
shorter the production cycle and the lower the stock level, the shorter the delay in the
introduction of changes. The criterion of the method of change introduction identifies:

•Evolutionary changes, which are slow and gradual and which arise from the need for
continuous improvement. Such changes are easier to introduce and are usually planned.

• Permanent changes, realized over a period of many years, usually in the form of planned,
long-term programmers for the improvement of the system of production planning and control.
They are implemented systematically and aimed at the achievement of long-term goals. The
changes implemented are subject to assessment. They can be assessed according to their
effectiveness and their economic effect. The effectiveness criterion refers to the extent to
which the defined aims of the change and the intended status of the system have been
achieved. Thus, according to this criterion we identify:

• Neutral changes, the benefits of which are balanced by the outlay.

• Ineffective (negative) changes, which have not achieved their aim. They are changes which
have not brought the expected benefits despite the outlay. For this reason, such changes are
disadvantageous not only for the system of production planning and control, but also for the
entire organization.

With respect to the economic effects achieved, changes are divided into:

• Cost-effective changes, in which the ratio of the effects produced, E, to the outlay on the
change, O, is positive (E/O>0).

• Economically neutral changes, in which the ratio of the effects produced, E, to the outlay on
the change, O, is zero (E/O=0)

• Cost-ineffective changes, in which the ratio of the effects produced, E, to the outlay on the
change, O, is negative (E/O0)

Both the actual outlay on the change and the effects produced may differ from their expected
values.

The above description does not fully explore the issues of classification of changes in the system
of production planning and control. Every organization uses different types of changes in its
activities, depending on its needs and the opportunities arising for the system of production
planning and control. The classification presented emphasizes the variety of changes
implemented, while the cause-and-effect approach stresses the need to link the causes of
changes, their scope and methods of introduction with feasible effects. This way, the above
classification may aid effective change management in the process of production planning and
control.

Summary:
A change is an inevitable part of operation of an organization; it accompanies the processes,
structure and corporate culture. It also applies to the process of production planning and
control. Changes in this process cause changes in the other areas of the organization and vice
versa – if an impulse of a change is directed to another area, its results are also transferred to
the process of production planning and control. With respect to their sources, aims, content,
method of introduction and results, changes in the process of production planning and control
may be classified into a number of types. Such cause-and-effect approach has a considerable
importance in the process of change management. It makes it possible to choose the best form
and method of change introduction for each impulse that causes a change, so that the change
assessment is positive and the change itself is effective. Changes in the process of planning and
control are caused by numerous factors. They can be divided into internal and external with
respect to the process of production planning and control. From the point of view of change
management a great importance is given to the development of a system that monitors the
values of different factors, espe- 318 cially those coming from the market. This will make it
possible to direct the changes and manage them appropriately. Correct management of the
process of changes is not possible without assessment of the changes introduced. For a
comprehensive assessment, a change in the process of production planning and control should
be evaluated by means of appropriate measurements, identifying the effect of changes
introduced on the value of these indices. Introduction of a change is justified if it causes the
index values at least to remain at the same level or approach certain boundary values. The
presented indices are used to evaluate the economic effects of changes, the speed of changes
and the required speed of reaction of the process of production planning and control. They also
indicate the directions of necessary changes in the process of production planning and control,
which will increase the effectiveness of the management of this process.

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Question No-04- With the current situation around the world how we
manage the problems in the production & supply of finished goods.
Also include the external & internal environments factors.

Introduction:
 Apparel manufacturing is labor intensive, which is characterized by low fixed
capital investment; a wide range of product designs and hence input materials; variable
production volumes; high competitiveness and often high demand on product quality.
The garment manufacturing process evolved as an art and underwent several
technical changes. The technological advancements in the apparel industry include the use of
computerized equipment, 3D scanning technology, automation and robotics, integration of
wearable technology and advanced material transport systems. Apparel products are
manufactured in a wide range of design and style variations, which increases the complexity of
the manufacturing process. Like any other manufacturing industry, apparel industry is a
dynamic one. Clothing is a basic human need. But present time clothing is not worn as basic
need; it is also element to express of fashion and showing social status. So apparel
production grows rapidly, occupying more and more regions of the world. And just like any
growing industry, at one point or another, apparel Industry has to face challenges as well. In
this article I will discuss on important challenges in garment production.

Major challenges in apparel production:

1. Consumer choice and demographic variability
2. Challenges related to supply chain
3. Challenges in design and production
4. Stiff competition
5. Environmental or Ecological challenges

1. Consumer choice and demographic variability

Apparel manufacturers have to produce a diverse product mix as consumers are difficult to

understand and predict. Their choice is unstable and unpredictable, and there is wide variation
in their demographics and physiographic. In addition, consumer’s age, household income,
education level, occupation and ethnicity also affect their choice. Consumers of recent times
are becoming more selective, multidimensional and complex due to increased awareness and
readily available information on the products and designs. Consumer’s choice is shifting
from traditional designs towards luxury high-fashion items. Consumers’ choices and
expectations widely vary within a target market. Almost all demand both moderate pricing and
frequent style changes, but some prefer to follow the latest fashion trend whereas others
desire to purchase investment clothing. However, a manufacturer cannot directly transfer
consumers’ choice and preferences in different product styles to satisfy their needs.
Consumer demand for fashionable items and frequent style changes has necessitated
reduction in the design and product cycle time.

2. Challenges related to supply chain:

A complete garment is fabricated from various components. For example, a man’s casual shirt
consists of cotton or polyester/cotton fabric, different trims and accessories like as nonwoven
interlining, woven or printed care labels, polyester embroidered brand labels, buttons or
snap fasteners and sewing thread. As each component is manufactured by different
suppliers, the non-arrival of any single component can cause delay in the production.
The apparel supply chain is complex and demanding due to global outsourcing, longer lead
times and shorter seasons. It is extremely difficult to forecast the changing styles, and the
supply chain is complicated by hard-to-model constraints, costs and lead times. The major
aspect of the supply chain is responsible sourcing, which takes into account factors such as
sustainability, compliance, chemical safety and product safety. In modern clothing
manufacture, the emphasis on quality is increasing and more intelligence and agility in the
supply chain is expected. Retailers are managing with smaller inventories and rapidly reacting
to consumer needs. There are always efforts by the retailers not to increase the retail prices in
proportion with the rise in the cost of inputs. Hence, the recent pressure on the profit margin is
greater than ever. The apparel retailers are facing challenges from Internet or online sales,
which continues to upend the apparel sector. Brick-and-mortar companies are brainstorming to
harness the power of Internet sales. As the proliferation of Internet-only companies continues,
there will be stiff competition among them.

3.Challenges in design and production:

An apparel item such as a pair of jeans looks simple compared to a vehicle, which may contain
about 15,000 parts. However, the former is involved with enormous design changes in a season
whereas the later undergoes few changes even for many years. Therefore, the apparel
manufacturers have to handle an extraordinary amount of design changes. Traditionally, the
apparel manufacturing process has been performed by production workers who perform
the cutting, sewing and other operations in an assembly line. In spite of the
technical advancements, the apparel industry still remains as a labour-intensive unit. One of the
major global concerns in apparel production is raising labour cost.

4.Stiff competition:
Apparel manufacturers and retailers always state that apparel manufacturing is
highly competitive. An apparel competitor sells similar clothing items to the same
market segment, consumers or store types. The globalization and post-MFA conditions have
accentuated the competition. Merchandisers perform comparison shopping to analyze the
price, quality and service of their competitors.

5.Environmental or Ecological challenges:

One of the biggest challenges in the world for the entire economy is sustainable development.
The unsustainability of the production, as mentioned, is a relevant problem for all industries,
but the textile industry overall has its unique place within the whole matter. The Apparel
industry pollutes the environment in significant amounts of natural resource usage.The major
environmental threat involved in the textile manufacturing process is contributed by wet
processing, which pollutes water. The toxic effluents that are harmful to aquatic lives as well as
to humans are directly released into rivers. Due to the action of dissolved oxygen in water, the
pollutants are broken down chemically and biologically. Hence the amount of dissolved oxygen
in the water is reduced, creating difficulties for the survival of aquatic life. Generally, a piece of
clothing is rejected when it fails to provide its intended service or goes out of fashion. At the
end of their life, clothing items are either recycled or thrown out as general waste, which often
goes into landfill sites. For a number of reasons, landfill is recognized as the least attractive
option for disposing of the waste. Landfill materials have the potential to pollute the air or
enter the water, causing environmental threats. Hence, to reduce the threats,
environmentalists’ watch words ‘reduce, reuse and recycle’ should be used in clothing
production. The global trend in apparel manufacturing is moving towards the use of
recyclable materials and reduced chemical finishes. The demand is shifting to develop eco-
friendly products from materials derived from sources other than petroleum, which is a limited
resource. However, several clothing items are manufactured as blends of natural and synthetic
fibers (such as polyester and nylon). Although the natural fibers are biodegradable, the major
concern is caused by the synthetic material. The concept of zero discharge of hazardous
chemicals requires manufacturers and retailers to take responsibility for the environmental
concerns. Strict legislation by federal and state governments can help in achieving this target.
Although this may be hard to achieve, it can help to substantially reduce the waste level and
hence environmental pollution.

Consumers around the globe are becoming more aware of environmental concerns and the
potentially harmful effects on human health from the toxic chemicals and ingredients in
clothing and food items. The textile industry, especially wet processing, uses many chemical
pollutants, allergens and carcinogens. Strict legislation is required for the manufacturers to
make their products safer by minimizing the use of hazardous chemicals and heavy metals. The
chemicals that are ecologically safe should only be permitted. The textile plants should also
address the problems of direct disposal of wastewater containing toxic chemicals into
waterways to reduce water pollution.
Conclusion:
There is no industry is guaranteed from challenges and problems. But challenges exist to
overcome them. Hence, some innovative ideas within the Apparel Sector are being developed
and implemented to keep a sustainable future for the overall apparel production.