FLASH DIAGNOSTIC

Factory

Does your operation encounter suffer from…

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❑ Warehouse full of obsolete stock?

❑ Pressure to reduce lead time?

❑ Excessive wastage?

❑ Efficiency below customers’ target?

Our diagnostic tools evaluate each element along the manufacturing value chain

Findings

…lower your costs…

…through practical solutions

• Production line-to-line efficiency variation of 5.7% above target

• Unbalanced workload and over processing driving WIP to be >1 day above target

• 80% of orders started butincomplete, causing delays in shipment compliance

• ~30hrs per day consumed on reworks

Solutions

• Planning organization alignment by optimizing system output, not department efficiency as well as standardizing line changeovers

• Quality root cause initiative focusing on in-line Kaizen management and problem eradication

• Build capability in core roles by aligning skills to functions and getting effective use out of tools

3 major tools help uncover improvement opportunities:• 𝟑𝟔𝟎° spider analysis focuses on qualitative analysis through

interviews and surveys at different levels of the organization • Killer Analysis enables data driven outcomes and focus on the

root cause of issues identified• Experts walks ensures that the operational constraints are

observed and add depth to analysis

Our tools help to…

Raw Material Receiving

Cut Sew Pack Finished Goods warehouse

CASE EXAMPLEWe utilized the above tools to help an industry leading garment manufacturer to further enhance their continuous improvement activities – with remarkable results!

Real IMPACT

Savings of $0.9 – 1.4 M

USDacross 5 main

areas

$800 - 1,200k

$80 – 120k

$5 – 15k

$80 – 100k

Bottom line savings opportunities total $0.9 – 1.4 M USD

Visualize factory opportunities in 2 days

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𝟑𝟔𝟎° SpiderComprehensive self assessment of factory fromstrategy to operations

Killer AnalysisFact based quantitative analysis of factory improvement opportunities

Experts WalksCustom checklist based on waste opportunities during on-site observation

Diagnostic tools enable fact-based observations

• Scanners are used only to ensure received goods. Item by item count is eyeballed

• Warehouse over-deliver fabric quantity to IQC• Disorganized boxes are on the IQC floor, IQC Flat table

has no aid on stuffs' motion reduction• No sensor on the truck or alarm for moving

• 40% of packing area is set aside for small incomplete orders driven by production and packing planning

• Transition packing area is disorganized with a lot of time wasted finding assortment

• Intended process flow for the packaging area is not followed by operators, further mixing orders

• Raw material is kept in a ‘supermarket’ configuration, however not optimized for minimizing transportation or reducing confusion with similar waste material carts

• Kanban ticket drives demand to eliminate WIP

• Safety first mind set is enforced with proper protective equipment

• Floor layout minimizes transportation

• Visual management with FIFO Kanban, demand pulling design to keep "zero inventory”

• Duplicated size sorting procedure, with IPQC/FQC overlap

• Repetitive errors and quality issues not addressed using mechanisms available in-line, in IPQC and transport to packing (66%-75% 1st pass yield rates observed)

• Pre-produced slow season finished goods piles create up to 30% of rework on box transportation

• Obsolete stock older than 12 months in warehouse

• Goods stacked over safe limit height, with wrap that is manually put on goods being loose/ineffective

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Pre-Production

Production

Packing

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1Raw Material Warehouse

Finished Goods Warehouse

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Dive into insightful data analytics from observations

Sewing line efficiency variations

Imbalance workflow in packing

Ineffective planning practices

High defect rates at FQC

Opportunities

Opportunities

Opportunities

Opportunities

0

100

200

300

400

500

600

30%

35%

40%

45%

50%

55%

60%

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6

Output Efficiency

Line

eff

icie

ncy

-15%

-10%

-5%

0%

5%

10%

15%

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6

line 1 line 2 line 3 line 4

Var

iati

on t

o Ta

rget

eff

icie

ncy

Line to Line variation is large, even when making the same product

Each line does not record reasons for non-conformance

Output (pcs)

Reduce efficiency variation through

in-line balancing

• Adapt the skill matrix for all roles in

sewing process

• Set KPI’s for in-line supervision

235k extra garments could be made at line target efficiency

Savings: $800-1,200k

• Determine best FQC location

• Balance resource arrangement in

packing process

• Deploy automated tools to replace

manual reporting tasks

Workflow, WIP and automation opportunity

Savings: $80-120k

• End-to-end production output

planning

• In-line root cause analysis

• IPQC review of performance

• FQC root cause deep dives

Increase Finished Goods output by 179k units by completing 32k units

Savings: $5-15k

Review of skills matrix and linking

KPIs to roles

• Evaluate in-line quality by mini-

alert set up, combined line data

analysis

• Review of IPQC and FQC

8% rework rate and 25% defect rate to be saved

Savings: $80-100k

• FQC cycle time ~45s (~30 people)

• Packing cycle time ~90s (~40 people)

• 0.9 days WIP between drying and FQC

• 0.2 days WIP between FQC & packing station

• FQC location is not optimized between processes

• Operator lost time for additional movement

• Water Spiders create transport waste moving garments (only ~20/rack every 5mins)

Flow is also inconsistent between packing areas

Work flow either side of packing cell is not balanced

8%6%7%11%

18%18%

10%8%9%7%

90%80%70%60%50%40%30%20%10%3%

21% of open PO’s are more than 70% complete

% of order complete (Greater than)

Assortment & Finished Goods areas are full of incomplete orders

40% 30%

Planning focuses on local optimums not factory output

• Planning processes are leading to 80% of started orders not completed

• Planning starts at sewing and local plans created in other areas

• Local optimum planning in other areas changes product order flow, creating more work and rework for defects and movement

Defects within the sewing line are not recorded

• Quality data is only recorded at end of line IPQC but not within line

• Yellow boxes provide the only insight to defects, that highlight to supervisors defective goods to be reworked

35% defect rate at FQC

~10% of defects come from garment assembly

• No CI presence on repetitive issues• Kaizen boards did not capture defects

by fault code or volume~25% of defects come from cleaning processes• Cleaning root causes not addressed• Loaded rework stations create

bottleneck

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Weave operates a clear assessment framework thatenables you to understand your business and buildimprovement initiatives.

❑ Evaluate your factory end to end

❑ Benchmark your factory operations againstindustry best practice

❑ Analyze results to identify opportunities andprepare change enablers

Manufacturers Management need to lead the process to make change across processes, organization and tools to createthe environment for change.

3 enablers for an effective improvement plan

• Support continuous Process reviews, using fact-based analysis and KPI-led decision making

• Create an Organization structure to support effective improvement activities

• Utilize available Tools to optimize bottleneck operations

To find out more about evaluating your supply chain, please contact Weave Services Limited.

USE OUR PROPRIETARY FACTORY DIAGNOSTIC SERVICES

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Fred LemoineManaging Director AsiaHong Kongfredlemoine@weavenow.com+852 5444 6400

Tim EdmundsSenior Engagement Manager Hong Kongtimothyedmunds@weavenow.com+852 2738 6248

Yoki YiuBusiness AnalystHong Kongyokiyiu@weavenow.com+852 2738 6676

Use 𝟑𝟔𝟎° Spider for qualitative insights

Strategic

Planning

Raw Material

Production

Finished Goods

Manufacturing strategy Resource

Allocation Integrated business planning

Performance management

Training

Capacity plans

Planning horizon

Communication Methodology

Raw Material Ordering

Raw Material Issuance

Raw Material Vendor selectionRaw Material

Vendor management

Raw Material Inventory

Raw Material Quality

Scheduling

Production performance management

Continuous improvement

Work In Progress management

Production Quality

Finished Goods Outbound

Finished Goods Inventory

Finished Goods Quality

Opportunity to consolidate existing reports and provide

overall view of performance to

customers

Opportunity to enhance

communication from managers to

supervisors on aligning objectives &

process

Opportunity to revise supervisors’

skill matrix and create development

programs

Average of self-evaluationWeave evaluationScore - Not observedScore - Industry best practice

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For more information on Weave’s Research, please contact:

fredlemoine@weavenow.com – Fred Lemoine

timothyedmunds@weavenow.com – Tim Edmunds

June 2017

Copyright © 2017 Weave Services Ltd. is a wholly owned subsidiary of the TAL Group. All rights reserved. Printed in Hong Kong.

www.weavenow.com

5th floor, 49 Austin Road, Hong Kong 19th floor, 3 Phillip St, Singapore 8th floor, #469, 7th Avenue, New York