current scenario and future prospect of supply chain management in utah composite garments,...

7/25/2019 Current Scenario and Future Prospect of Supply Chain Management in UTAH Composite Garments, Bangladesh.

1/19

Prepared ForDr. Nikhil R. Dhar, Ph.D

ProfessorIPE department

BUET

Prepared BySoura PaulBat!h" #$D ID"%&

Institute of Business 'dministration, Uniersity of Dhaka.Date of Su(mission" )une &, $*+

+ - P a e

/urrent S!enario and Future Prospe!t of Supply/hain 0anaement in UT'1 /omposite


2/19

R e p o r t o n S C M i n U T A H g a r m e n t s - 2

1. Executive Summary:

Todays apparel industry is more demand centric. Foreign buyers place orders according to the need of

them. angladeshi garments normally play a role of tailoring shop of fulfilling the role of manufacturing.

Many factories are concerning about the compliance issues no! days to attain better position in ethical

ssue. Supply chain helps to demonstrate the application of proper management of all the possible layouts

to ha"e a better understanding of the process.

Here # conducted research on UTAH garments to find out their pre"ailing supply chain management system

and any possible gap to find a better !ay of implementing Supply Chain Management. # used both primary

and secondary data to reach specific findings.

UTAH is a ne! generation garments originated from $a%istan and started its operation in angladesh from

&''&. They managed most of their production and !arehouse facility through an integrated computer

system !hich is an older "ersion of present (R$.

They ha"e many opportunities in implementing better management systems through (R$ and more

penetration of standard Supply Chain management.


3/19


2. Acknowledgement:

The report is submitted as an effort of being in supply chain course in )

th

semester of #nstitute of usinessAdministration* Uni"ersity of +ha%a.

There !ere numerous helping hands in conducting the total research. #t added a lot to my practical

e,posure and %no!ledge.

!ould li%e to e,press my gratitude to my course instructor -i%hil R. +har* $h.+. !hose generous guidance*

attention* and particularly un!a"ering encouragement al!ays %ept my focus on the desired !or% to be done

to conduct the research. The paper he pro"ided de"ising e,act %ey points ho! to !rite the findings helped

to shape this report.-e"ertheless Md. Raisul #slam * $roduction e,ecuti"e of UTAh arments helped !ith

his time and insights to get e,act findings.

Finally # than% the almighty od for %eeping me on trac% during the full process of the report.


4/19


3.Contents:

Tale o! Contents+. E3e!utie Summary"......................................................................$

$. '!kno4ledement"........................................................................%

%./ontents"........................................................................................5

5. /ompany Information"...................................................................#

#. 'nalysis of Supply /hain Deliery Performan!e.............................#

UT'1 2arments (usiness stru!ture"...............................................#

0anufa!turer 6ead time"................................................................&

Types of Inentory"..........................................................................7

. S/0 implementation 0ethodoloy /hallenes"...........................+*

Ti!ketin System".........................................................................+*

6o (ook"......................................................................................++

Employee attendan!e...................................................................++

Tru!k num(er entry......................................................................+$

Fore!astin"..................................................................................+$

)IT layout"......................................................................................+$

Parti!ular !hallenes in implementation"......................................+#

&. Business (ene8ts of S/0 implementation"..................................+

7.Summay".......................................................................................+&

9.Referen!es"...................................................................................+7


5/19

R e p o r t o n S C M i n U T A H g a r m e n t s - "

4. Com#any $n!ormation:

Utah is one of the composite factories in angladesh. #ts a $a%istani

multinational company. #t has been operating since &''& in angladesh and

its a /''0 e,port oriented composite factory. Here dyeing* %nitting* !ashing*

printing* embroidery are done full proficiently.

#n the t!o garments* there are 12 lines. They ha"e many departments for

maintaining the sector li%e production* 3uality* cutting* merchandising*

planning* industrial engineering etc. Most of their buyers are from (uropean

Union !ho are !or%ing !ith them cooperati"ely. H4M* addidas* ne,t* 5ordous*

5ecipeny* carters* puma* s6 oli"er* American eagle etc are their main branded

customers. They ha"e around /'''' employees and per day appro,imate

/''''' pieces of garments are produced from this garments.

". Analysis o! Su##ly C%ain &elivery'er!ormance

(TA) *arments usiness structure:

Readymade garment is a labor6intensi"e industry and relati"ely simple

technology compared to other high6tech industries. The UTAH garments

manufacturing units are li%e tailors shop7 getting order from the foreign buyers

and then import ra! materials specially fabrics from the foreign suppliers or

sometimes buy from the local mar%et as per order* then manufacture

garments and supply those to the buyers.


6/19

R e p o r t o n S C M i n U T A H g a r m e n t s - +

#n the RM sector* the Manufacturer 6 Ra! materials Supplier relationship is

different. #n this #ndustry the main ra! materials are fabrics 8Cloths9 and fe!

accessories are li%e button* collar etc. About :'0 of the suppliers of

accessories are local.

UTAH garment needs more time in getting higher due to import of fabrics

mainly from China* #ndonesia and #ndia*The total a"erage time to import

fabrics from abroad is &;6


7/19

R e p o r t o n S C M i n U T A H g a r m e n t s - ,

-anu!acturer ead time:

>ust in &''


8/19

R e p o r t o n S C M i n U T A H g a r m e n t s - /

Dut of this the shipping time of &; days is constant. There !as no chance to

reduce this shipping time but they could successfully reduce the rest


9/19


Ty#es o! $nventory:

There are mainly four types of regular in"entory in UTAH group. Cycle Stoc% Apparel operation usually is carried out in batches* !hich

results into accumulated stoc% before and after a !or%6center unless

the entire batch is completed. This %ind of cycle in"entory is direct

manifestation of any batch process. #ts le"el depends on batch6si=e

and production rate. These are the main type of in"entory and one of

their ma5or resource occupying section.

or% in $rocess Stoc% This is common to all %ind of operation6 batch

and continuous. To %eep running* e"ery machine needs certain

in"entory* !hich is fallen under the present category. Type and

producti"ity of machinery determine the le"el of this type of in"entory.

+ecoupling Stoc% #n apparel operation* seldom it is possible to

balance producti"ity of e"ery !or%station. +ifferential producti"ity

bet!een !or%6centers creates bottle6nec% area across apparel

manufacturing chain. +ecoupling stoc% is created to nullify this

bottlenec% effect and to maintain smooth material flo!. #ts le"el is in

proportion to the rate of differences in producti"ity bet!een t!o !or%6

centers.

Safety Stoc% This is a result of supply orGand demand "ariability. To

efficiently carrying out operation and satisfying consumer demand*

organi=ation needs to maintain stoc% at certain le"el* !hich depends on

firms policy and on fluctuation in supplyGdemand


10/19


+. SC- im#lementation -et%odologyC%allenges:

("ery firm along the supply chain can use this simple method to estimate the

$erformance of its suppliers* internal operations* logistics pro"iders*

!arehouses Gdistributors in terms of fractional success in achie"ing deli"ery

performance. For each entity in the supply chain* i.e.* a firm* its supplier*

distributor and transporter* norms must be fi,ed !hile negotiating contracts.

e can ran% the entities depending on their past performances and form

strategic alliances !ith only reliable parties. ("ery time* the benchmar% should

be re"ised !ith mutual agreement on terms and conditions of supply for

smooth flo! of materials along the supply chain !ith enhanced deli"ery

performance to customers. At present the follo!ing systems are pre"ailing in

UTAH garments.

S!ope of improement"

Ticketing System:

This system allo!s to add tic%ets and number mar% on each garments

stoc% carrier. They can identify !hich products container is for !hich

particular production and place those is respecti"e area of ra!

material. This can be impro"ed by implementing IA-A- system.

IA-A- !ill allo! the !are house materials to tag particular colored

tag !ith each bo, or cartoon according to their designated use and so

these !ill be easier to monitor the e,act condition of them. #f any

product is out of order or need to be changed that can be easily

identified by loo%ing at the attached IA-A-.


11/19


og ook:

hen a particular sac% or container is ta%en from !are house that is

noted manually in log6boo% and that is maintained o"er a period of time

and rechec%ed to ma%e sure !hether those are aligned to the total use

in production floor. Since all the data %eeping are manual that

sometimes ma%e is tough to find e,act trac% of any products

mo"ement.

IA-A- !ill be "ery helpful in maintaining e,act flo! of material and it

!ill be possible to %eep trac% of the materials ta%en a!ay from the !are

6house.

Em#loyee attendance

There are many numbers of employee !ho are not that educated to

!rite their name by themsel"es. As they arri"e at entry point their name

in entered in the attendance boo% by the helping hand of floor in

charge. These sometimes %eep a secret gate!ay of false statement inthe attendance boo%.

An integrated #+ "erification system is must for this garments to e,actly

identify e"eryones attendance.This may sound a "ery e,pensi"e and

time consuming !or% no! but this !ill ha"e a better impact in coming

future.

Jess gap in !or%ing process and more authori=ed super"ision !ill

increase producti"ity of the employee. -e"ertheless many angladeshi

organi=ations are already implementing this system.

Truck numer entry

hene"er a truc% or mini"an brings in good from the supplier they aregi"en a to%en of recei"ing and part of that to%en is %ept signed by the


12/19


recei"er. This !hole process is manual and that is tough torechec% in

time of any necessity. These systems could be easily impro"ed by

using a computeri=ed system.

orecasting:

Techni3ues of forecasting must be re"ised and maintained in a more

handy !ay to reduce e,penses of e,cess in"entory. UTAH garments

presently follo! and order the products !hen necessary and mainly the

button* Kipper these are ordered according to assumptions and spare

ones are not ta%en into considerations !hen a single order is

completed.

These techni3ues are age old and proper management in ordering

should be maintained to ensure best use of pre"iously unused

resources. A computer generated number of the spare ones to all

departments !ill be able to pro"ide the e,act number of necessary

products !hen a single batch is under operation.

$T layout:

According to regular operation in UTAH garments they are follo!ing

t!o types of arrangements in their production floor. Dne is in K#KA

pattern and other is L pattern.They normally ha"e )'6)< machines in a single line. For any %nit !ear

production they use this regular lines in K#KA pattern. #n time of

5eans production they use line consisting of 2'61' machines and use U

shaped pattern. ery minimal number of products of special attention

are prepared by L shaped production line.arehouse is in a separate floor. ut in condition of >#T layout e,cess

space in single unit could be used for regular in"entory and time

management !ould be more efficient.#n >#T techni3ues similar functionalities are managed in single room

comprising of similar functionality technicians. These cross functionality


13/19


!ould be helpful to build their capability and efficiency in other areas

other than their o!n speciali=ed areas.(,ample of the present layout is pro"ided belo!. This "aries according

to different production re3uirements.This picture is collected directly from UTAH factory floor.


14/19


$roblem # identified !ith this layout is these machines are fi,ed and "eryhea"y to mo"e. So ultimate utili=ation of floor space is not possible yet. #t!ould be a better idea if these machines !ere made mo"eable to redesign

the o"erall area in term of utili=ation of >#T layout.


15/19

R e p o r t o n S C M i n U T A H g a r m e n t s - 1"

'articular c%allenges in im#lementation:

/. All le"el of employees are already used to !or% in a system for a longer

period of time and they !ill be reluctant to change the system as theyare resistant to come out of their comfort =one. Moreo"er ma%ing a

read5ustment and implementation of computeri=ed system !ill increase

transparency and their !ill be lesser chance of personal interest.&. There must be a decision about !hat are the data UTAH garments

!ant to store from the pre"ious operations and !hich they dont.


16/19

R e p o r t o n S C M i n U T A H g a r m e n t s - 1+

,. usiness ene5ts o! SC- im#lementation:

Je"els of in"entory in supply chains are directly lin%ed to cycle times* and

cycle times in physical logistics are largely a function of distance* uncertainty

and comple,ity. From the point6of6"ie! of the mo"ement of physical goods* an

integrated supply chain offers the opportunity for firms to compete on the

basis of speed and fle,ibility* !hile at the same time holding minimum le"els

of in"entory in the chain. Rather than goods being held at "arious points

!ithin the chain* they !ill be mo"ing bet!een these points.

#mplementing better and managed supply chain in UTAH garments can

benefit them in different perspecti"es of business.

ill help to get a o"erall process "ie!.

#mpro"ed efficiency* Jo!er Costs and increase producti"ity.

Je"eraging #T to enhance speed of tas% and increase production.

ill help to reduce idle time* lead time and non "alued time.

#nformation sharing !ill be more transparent.

Ieeping trac% of pre"ious business record !ill be more automated and

they can %eep trac% of possible order incoming.

enerate* manage* and collaborate on reliably accurate forecasts.

Analy=e sales history and forecasts in units* re"enues* margin* or any

other unit of measure

Automatically respond to seasonality* shifting gro!th trends* and

product mi, transitions.

Db5ecti"ely manage ne! product introductions.

Trac%* report* and systematically impro"e forecast accuracy and

customer ser"ice performance by apparel or any other subordinate

apparel accessories.

Manage product lifecycle transitions from season to season. This help

in a manner ho! ne! trends in producing different designs are e"ol"ing

time to time.

enerate sourcing plans that %eep in"entories in sync !ith e"er6

changing forecasts and static capacity constraints


17/19

R e p o r t o n S C M i n U T A H g a r m e n t s - 1,

+ri"e an effecti"e sales and operations planning process.

#t is obser"ed that company first identify and !or% on reducing and eliminating

non6"alued added acti"ities* processes and components in the business. #t is

only !hen they start to adopt a holistic "ie! to efficiently address enterprise

needs that they !ill be able to deli"er their products and ser"ices !ith speed*

ease and 3uality.

/.Summay:

Based on the a(oe dis!ussion the follo4in de!isions !an (e made" 'll the (usiness !hannels should 4ork (etter to implement the

4ide spread opportunity of supply !hain manaement. ERP system 4ill redu!e su(stantial amount of 4ork load and

help to monitor 4ork pro!ess. Implementation of A'NB'N 4ill help to keep ood tra!k of

material :o4 throuh the inentory and 4arehouse andtransparen!y 4ill (e more prealent.

Relationship 4ith supplier 4ill lead to redu!ed lead time and

more a!!urate measure of !ost in produ!tion pro!ess. Better :o4 of information throuh the !hannel 4ill make sure

that the alue !hain partners are proided 4ith enouh

emphasis. aria(le task performed (y 4orkers 4ill in!rease :e3i(ility in

the 4orkin enironment.


18/19

R e p o r t o n S C M i n U T A H g a r m e n t s - 1/

0.6e!erences:

+. http"


19/19


current scenario and future prospect of supply chain management in utah composite garments,...

Documents