consulting group Increase Competitiveness Reduce Costs

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Augustine Grant
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1 Strengthen the Textile Supply Chain Through IT Increase Competitiveness Increase Efficiencies Reduce Costs

2 The real Textile World The Garment Industry Retail The Chemical Fibre Industry The Chemical Industry Service Provider The Textile Industry Fiber Yarn Fabric Finished Fabric Chemichal Industries Garrment (Fashion/ Function) Home Applications in Distribution / Retail Textile Services Industriel Use / Production Applications Automotive Building Health Care... Private Use / Consumption Variety of Services and Disposal / Recycling Non-conventional Textile Processing Furthermore: (Textile) Mechanical Engineering, Laboratory Configuration and Services, Logistics, Insurances, Banking and Financing, Consultancy, Human Resources, Marketing, Software Development, , 2005 DITF/MR, adopted March 2004 by CEN/ISSS Workshop TEX SPIN (TEXtile Supply Chain Integrated Network) within the CEN Workshop Agreement (CWA 14948) Guidelines for XML/EDITEX messages in the textile/clothing sector

.. Private Use / Consumption Variety of Services and Disposal / Recycling Non-conventional Textile Processing Furthermore: (Textile) Mechanical Engineering, Laboratory Configuration and Services,

3 Research & Development Textile BOM - Routings Confection/Garments Routing Confection/ Garment Internal / External Production/ Job Work At any stage possible Routing Weaving Routing Yarn dyeing/spinning Finished Fabrics Greige Fabrics Warps Yarns Fibre Routing Finishing Routing Warping

any stage possible Routing Weaving Routing Yarn dyeing/spinning

4 SCM Evolution Effective and Efficient Supply Chains a must to compete in the networked World Stage 1: Production, Distribution, Procurement, Stocking etc. not linked and are Independent of each other Stage 2: These are integrated under one plan and are ERP enabled Stage 3 : Shop floor Integration to ERP with Plant Data Collection systems Stage 4: Vertical integration with suppliers in upstream and customers in Downstream direction is achieved

not linked and are Independent of each other Stage 2: These are integrated under one plan and are ERP enabled

5 Effective SCM-Guiding principles Change from managing individual functions to integrating activities into key Supply chain processes Activities / Information flow between the value chain can only be fully leveraged through Process integration Key areas for process integration: Key areas for process integration: Customer relationship management Demand management / planning Order fulfilment Manufacturing flow management Procurement / Vendor relationship management Product Development Stocking and Warehouse Management Outsourcing / External job work management

integration: Key areas for process integration: Customer relationship management Demand management / planning Order fulfilment Manufacturing

6 Textile Value Chain Matrix Textile Value Chain Integrate through ERP

7 Improve Your Service Conventional Organization for Order Processing Customer Sales Supplier Sales/Process- Clerk - Determin Price - Check Limits - Shipping/Invoice- Details Purchase Days/Weeks later... Production Planner

Sales/Process- Clerk - Determin Price - Check Limits -

8 Improve Your Service Streamlined Organization with intex Customer Sales Immediate Information - Delivery ability (based on Material & Capacity checks) automatically based on - Customer conditions (special prices) - Specialities - Credit Limit Delivery- Conflicts missing contracts Production- Planning (EDI) Order calls Purchase Contracts Supplier

based on - Customer conditions (special prices) - Specialities - Credit Limit

9 Production Planning Supply Chain Order Network Integration between different process stages optimize throughput between stages and increase overall efficiency, manage capacity bottlenecks, real time order progress... spinning order preparation weaving order A pretreatment A dyeing red weaving order B pretreatment B dyeing blue finishing 1 dyeing green finishing 2 this week next week the week after in three weeks in four weeks in five weeks

10 Production Planning Material Availability & Planning Capacity Availability & Planning Production Order Planning Order Network (purchase-production-sales) Delivery Date Determination Production Order Delays

11 Production Planning Material Availability Exact calculation of all stocks and running orders on the timeline Transparent capability to deliver Capability to produce for all requirements of the production Exact control of stock levels on the lowest level (JIT) Optimal restock orders because of statistic information

produce for all requirements of the production Exact control of stock levels

12 Improve Your Service Pre-sales Phase Automatic Calculation of the Delivery Date - Material availability check When could the production start? - Capacity planning against limited capacity When could the order be finished? - Planning of transport and shipping times When could the goods be delivered to the customer? - Simulation How would a rush order effect other orders?

- Capacity planning against limited capacity When could the order be finished?

13 Scheduling Fine Planning OPTIMIZE MACHINE LEVEL SCHEDULING ACROSS THE VALUE CHAIN Consider vital textile parameters of the product and the machine Validation checks / rules System enabled optimizations INCREASE MACHINE EFFICIENCIES / OPTIMIZE CAPACITY UTILIZATIONS REDUCE IDLE TIMES / CHANGE OVER TIMES

Validation checks / rules System enabled optimizations INCREASE MACHINE

14 Plant data collection (PDC) Integrate with ERP Different PDC solutions : 1. Ring data system 2. Loom Monitoring 3. Finishing Monitoring 4. Online Fabric Inspection 5. Online Scanning for material movements 6. Weaving CAD software 7. Interface to other sub systems like color matching, weighing scales, Dosing/dispensing systems etc.

Online Fabric Inspection 5. Online Scanning for material movements 6.

15 Benefits of Process Improvements and Integration through ERP B1: Secure Delivery Dates B2: Accuracy B3: Cost Saving B4: Tracing B5: Speed B6: Flexibility B7: Secure Technology B8: Embedded Know-How

16 B1: Secure Delivery Dates B.1 Secure Delivery B1: Dates Secure Delivery Dates B2: Accuracy B3: Cost Saving B4: Tracing Secured MILESTONE dates based on actual available production capacity on a time scale Reliable requirement forecast for all raw materials (for purchasing or production requirement) Early warning system for back lot situation B5: Speed B6: Flexibility B7: Secure Technology B8: Embedded Know-How SATISFY YOUR CUSTOMERS NEEDS RECEIVE CONTINUED BUSINESS SECURE YOUR MARKET POSITION

actual available production capacity on a time scale Reliable requirement forecast for all raw materials (for purchasing or

17 B2: Accuracy B1: Secure Delivery Dates B2. Accuracy Embedded textile formulae and textile business logic ensure plausibility checks and accurate data B3: Cost Saving B4: Tracing B5: Speed B6: Flexibility B7: Secure Technology B8: Embedded Know-How REDUCE THE NUMBER OF FAULTS IN PRODUCTION OF NEW ARTICLES REUSE PREVIOUS KNOW HOW

checks and accurate data B3: Cost Saving B4: Tracing B5: Speed B6: Flexibility B7:

18 B3: Cost Saving B1: Secure Delivery Dates B2: Accuracy B3. Cost Saving B4: Tracing B5: Speed Standard-/Actual Costing for winner/loser identification Cut optimization at final fabric inspection to increase the A-Grade output Inventory reduction due to Just in Time stock HR Quality Contribution B6: Flexibility B7: Secure Technology B8: Embedded Know-How FOCUS ON PROFIT MARGIN PRODUCTS INCREASE A-GRADE QUANTITY AT FINAL INSPECTION DECREASE OVERHEAD COST DECREASE INVENTORY COST/BOUND INVESTMENT REDUCE B-GRADE

inspection to increase the A-Grade output Inventory reduction due to Just in Time stock HR Quality Contribution B6: Flexibility

19 B4: Tracing B1: Secure Delivery Dates B2: Accuracy B3: Cost Saving B4. Tracing B5: Speed B6: Flexibility B7: Secure Technology B8: Embedded Know-How Production order tracing gives you transparency of all production steps Order network between different production stages linked to the sales order gives exact status of WIP / delays Backward/forward Tracing of material origin available at any time (ISO required) Fast customs declaration Quality Contribution REDUCE TIME CONSUMING AND NON-PROFITABLE WORK TO A MINIMUM FULLFILL EXPORT REQUIREMENTS FOR DOCUMENTATION

production steps Order network between different production stages linked to the sales order gives exact status of WIP / delays

20 B5: Speed B1: Secure Delivery Dates B2: Accuracy B3: Cost Saving Check about the technical feasibilities of textile products specifications faster product development Automated inventory control and Wifi scanning of all material movements enables faster inventory taking B4: Tracing B5. Speed B6: Flexibility B7: Secure Technology B8: Embedded Know-How INCREASE YOUR TIME TO MARKET CYCLE STAY COMPETITIVE PRECISE INVENTORY-REDUCE INVENTORY HOLDING COSTS

material movements enables faster inventory taking B4: Tracing B5.

21 B6: Flexibility B1: Secure Delivery Dates B2: Accuracy B3: Cost Saving B4: Tracing Recognition/easy adoption of ever-changing user requirements due to fashion and technology evolutions Flexible/Customizable end-to-end process flows with variant planning in order to enable make and/or buy decisions for each production step B5: Speed B6. Flexibility B7: Secure Technology B8: Embedded Know-How APPLY KNOW HOW FOR SIMILAR ARTICLES PAMPER YOUR CUSTOMER WITH FLEXIBLE ATTITUDE OPTIMIZE COST CONTROL

22 B7: Secure Technology B1: Secure Delivery Dates B2: Accuracy B3: Cost Saving B4: Tracing Use of future proof technology RDBMS database PC hardware Client/server technology B5: Speed B6: Flexibility B7. Secure Technology B8: Embedded Know-How PROTECT YOUR INVESTMENT

23 B8: Embedded Know-How B1: Secure Delivery Dates B2: Accuracy B3: Cost Saving B4: Tracing B5: Speed B6: Flexibility Industry specific production know-how in your database from raw wool/wool cotton - polyester tops to yarn to fabric to garment for formal and casual wear for home furnishing, bed sheeting, shirting, etc for technical textile fabric B7: Secure Technology B8. Embedded Know How REDUCE DEPENDENCY AND RISK ON SINGLE PERSON S KNOW-HOW PROTECT & CONSERVE YOUR KNOW HOW

24 Benefits Secure Delivery Dates Accuracy Cost Saving Tracing Speed Flexibility Secure Technology Embedded Know-How REDUCE YOUR TIME TO MARKET CYCLE REDUCE FAULTS ON NEW & RUNNING ARTICLES FOCUS ON PROFIT MARGIN PRODUCTS INCREASE A-GRADE QUANTITY DECREASE OVERHEAD COST DECREASE INVENTORY & BOUND INVESTMENT REDUCE ADMINISTRATION TIME APPLY KNOW HOW FOR SIMILAR ARTICLES PROTECT & CONSERVE YOUR KNOW HOW SECURE YOUR MARKET POSITION

25 Intex Consulting GmbH Thank you very much for your attention! For more details, pls. Contact: Intex Consulting Group

26 Economizing Potentials With intex you can increase your efficiency! reduce your administrative effort optimize your management reduce your response times improvement your customer services produce just in time optimize your capacity utilization perfect stock management improve the material transportation optimize your purchase procedure

27 Economizing Potentials Conclusion: intex will help you to reduce your costs and increase your efficiency!

Functional Area Systems Production / Operation Systems

ACS-1803 Introduction to Information Systems Instructor: Kerry Augustine Functional Area Systems Production / Operation Systems Lecture Outline 5, Part 2 ACS-1803 Introduction to Information Systems Examples: