A Proven Pattern for Profitable Growth. Creating a New Operating Model for Garment Industry Sustainment and Success
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1 A Proven Pattern for Profitable Growth Creating a New Operating Model for Garment Industry Sustainment and Success
2 Building Organizational Agility That Delivers Long-Term Value Outperform Your Competitors Challenged by constantly changing fashion trends, rising material and labor costs and a need to improve employee working conditions, garment manufacturers must nevertheless achieve profitable growth in order to compete and win in a low-margin business environment. The solution? A proprietary TBM approach that creates a pathway for growth through superior productivity improvements, fewer defects, increased flexibility and an engaged workforce.
3 A Proven Pattern for Profitable Growth A Perfect Fit for the Garment Industry TBM s deep experience in operations excellence offers proven ways to achieve enhanced business performance and profitable growth, including: Improved Performance Reduce operational costs and lead times while ensuring higher quality. Raise labor productivity and throughput with enhanced sewing efficiency, improved material utilization, fewer defects and optimized man-to-machine ratios. Revenue Growth Accelerate growth and avoid unnecessary capital outlay by creating multiple points of competitive advantage improved profitability, liberated floor space and greater cash availability to fund expansion. Employee Retention Reduce attrition and retraining requirements while increasing employee satisfaction and product quality levels through a culture of continuous improvement. Introduce performance-based compensation and disciplined daily feedback. Product Lifecycle Management Drive competitive advantage and energize profitable growth. Launch new products 3-4 times faster at development costs that are 50-75% lower. Compress product development lead times with flexible, efficient production processes while generating savings in staffing, inventory and floor space. Flexibility and Responsiveness Ensure timely delivery of fashion merchandise by accelerating approval and changeover times, creating an equitable workload distribution, and streamlining sample-making tasks. Supply Chain Management Improve supplier performance through assessments that identify areas of potential change, and offer systematic, quantifiable plans for enhanced quality and service. Gain competitive advantage and overcome competitive risks from other low-cost regions through improved performance and increased business with key customers. Sustainability, Safety and Social Compliance Utilize continuous improvement to build a safer, environmentally friendly workplace without trading higher wages for profitability. Proactively address social compliance, safety conditions and drive long-term viability. TBM Management System Boost financial performance with an enterprise-wide approach that empowers employees to improve their part of the business on a daily basis in alignment with the organization s strategic direction. Since the introduction of Lean System, we have significantly reduced our cost and become more competitive in the market. We can now make the best products, regardless of manufacturing complexity and product variety. Andy E. Y. Senior Factory Manager, Fotexco
4 Capitalizing on Employee Pride and Commitment Adhering to the principles of Operational Excellence can have a positive and lasting impact on organizational culture. TBM helps garment manufacturers create a safer, more satisfying work environment in which employees are fully engaged and decision-making is brought closer to the point of impact. As a result, employees feel a greater sense of ownership and take pride in the quality of their work significantly reducing attrition rates and contributing to better business outcomes overall. TBM has worked closely with these and other global brands and garment manufacturers to improve performance and accelerate growth through lean manufacturing.
5 A Proven Pattern for Profitable Growth Some of Our Global Garment Industry Success Stories Apparel Exporter: India Garment Manufacturer: Indonesia Global Athletic Apparel Supplier One of India s largest apparel exporters, in partnership with private equity ownership, implemented a lean roadmap to drive world-class operations, lead innovation and actively pursue acquisitions. An Indonesian garment manufacturer of knitted apparel products that employed 4,000 workers sought to grow annual sales by 15% by streamlining multiple small production runs. A multi-billion dollar designer and seller of athletic apparel saw the need to increase gross margins and better manage its 20+ suppliers, with the goal of improving lead times and quality and reducing costs. Over a period of 14 months, a LeanSigma program was deployed in four plants resulting in: 80-90% improvement of on-time delivery 75-85% improvement of first-pass yield 35% rise in productivity 2% sales increase in spite of global recession The company applied operational improvements in a single year resulting in: 69% reduced changeover time 38% productivity gains 31% improved quality 9% capacity liberated TBM developed and implemented a global lean supplier assessment and development program resulting in: Improved on-time delivery from 84% to 96% Improved inventory turns from 9 to 16 Reduced lead times from 102 to 60 days 18% productivity gains
6 TBM: A Proven Approach to Operational Excellence TBM helps garment companies meet escalating demands for cost-savings, sustainability and market responsiveness. Our ability to help create and sustain operational excellence throughout the enterprise delivers new high levels of performance, innovation and business value. Our lean manufacturing approach includes: Industry expertise Our global team of 120 industryfocused experts brings from years of operational, management and executive experience, offering valuable sector-specific insight. Strategic alignment We carefully align our approach with the financial goals and requirements of our clients, ensuring shared objectives, expectations and results. Hands-on service delivery We maximize enterprise value by embedding dedicated teams of experts for rapid results, knowledge transfer and sustainment. Rapid deployment Our global footprint and bias for action ensure that we respond and scale up quickly to help you achieve your objectives. A proprietary approach We have a 20-year history of successfully creating business value through our proprietary LeanSigma approach. Accelerated results Our priority is to achieve measurable EBITDA and revenue growth, and significant balance sheet improvements in an accelerated timeframe, and maintain them for the long term. When we finally saw how lean works when we visited a factory in Sri Lanka, we thought that it was remarkable to see what they achieved. As soon as we did our first Kaizen, everything changed. We could not believe what we were seeing. Marinee Yuprapan Director, Sumbiri
7 A Proven Pattern for Profitable Growth TBM Results Speak For Themselves To access our complete library of case studies, management briefings and other resources, visit tbmcg.com or call
8 2013 TBM Consulting Group, Inc. TBM, the TBM logo and LeanSigma are registered trademarks of TBM Consulting Group, Inc. TBM Consulting Group TBM is a global operations management consulting firm that maximizes enterprise value and accelerates growth by working with clients to leverage Operational Excellence. We work side by side with our clients to immediately improve EBITDA, accelerate organic growth, integrate newly acquired businesses, and generate immediate and long-term balance sheet improvements. Our subject-matter professionals average years of operational, management and executive experience, and none of them are career consultants. We leave behind a customized framework and structure for lasting change using our proprietary LeanSigma approach, which has been continuously improved since its introduction over 20 years ago. Join us on TBM Consulting Group Our Blog China Brazil France Germany India Mexico United Kingdom United States
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