profiting through quality final
DESCRIPTION
PTRANSCRIPT
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Profiting through Quality: Improving Right First Time
Learning from systematic and collaborative implementation of Quality Improvement Program in 10 apparel firms
Sustainable Economic Development
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Published by :
Deutsche Gesellschaft fr Technische Zusammenarbeit (GTZ) GmbH
German Technical Cooperation SME Financing and Development Project B-5/1, Safdarjung Enclave, New Delhi - 110 029, India Tel: +91 11 2671 5952 / 5826 Fax: +91 11 2616 6844 E-mail: [email protected], [email protected] Website: www.gtz.de
AuthorDr. Rajesh Bheda, Principal & CEORajesh Bheda Consulting
Responsible:
Amit Kumar
New Delhi, September 2009
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Content 1. Background and Framework Condition 7
2. Cost of Poor Quality: an introduction 9
3. ProfitingthroughQuality:KeyResults 13
4. Case Studies: 17
4.1 ImprovedCoordinationbetweenmerchandisingandproductionteam 18
4.2 Interdepartmental team spirit and cooperation 20
4.3 ReductioninstainsinGarments 21
4.4 Improvement in subcontracted sewing quality 23
4.5 Improvement in sewing quality 24
4.6 Fabric inspection system 26
4.7 InternalCustomerfeedbackmechanism 28
5. QualityImprovementProgramme:PlanningandImplementationapproach 31
6. TechnicalTermsexplainedandputintocontext 35
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AbbreviationsAQL Acceptable Quality Level
COQ Cost of Quality
DFID Department for International Development
DHU Defects per Hundred Units
GOI GovernmentofIndia
GTZ GermanTechnicalCooperation
KFW KreditanstaltfrWiederaufbau(ReconstructionCreditInstitute)
MSMEs Micro, Small and Medium Enterprises
OGTC OkhlaGarmentandTextilesCluster
PDCA PlanDoCheckAct
QIP Quality Improvement Program
RBC RajeshBhedaConsulting
SIDBI Small Industries Development Bank of India
SMEs Small and Medium Enterprises
SPC Statistical Process Control
SQC Statistical Quality Control
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1. Background and Framework Condition
TheGovernmentofIndia(GOI),throughtheMinistryofFinance,isworkingwithamulti-donor
consortium to implement Small andMediumEnterprise Financing andDevelopment Proj-
ect.WorldBank,KFW,DFID,andGTZaretheparticipatingagencies.Theobjectiveofthe
Multi-DonorProjectistostrengthengrowthandcompetitivenessofmicro,smallandmedium
enterprises (MSMEs), by improving their access tomarket-oriented financial and business
development services.
GermanTechnicalCooperation(GTZ)isimplementingitsprogramoftechnicalassistancein
closecooperationwithSIDBIandApparelisoneofthesubsectorssupportedbyGTZ.Based
on theconsultativeandparticipatorydiscussionwithallstakeholdersanurgentneed to im-
proveproductivity,qualityandsystemsingarmentmanufacturingfactorieswasidentifiedas
keybottlenecktoenhanceitscompetitivenessandemploymentpotential.Inthefastchang-
ingglobalbusinessenvironment,wherethereisconstantpressureonleadtime&pricing,the
wayforwardforapparelMSMEsistoimproveefficiency,cutthecostbybetterquality,waste
reductionandothermeans.Howeverthenonconformingquality(defect)levelintheapparel
industryisquitehigh.
InordertodevelopadeeperunderstandingamongsttheapparelmanufacturingMSMEsand
appreciationregardingneedforundertakingtheimprovementmeasuresandthusreducing
repairandrejectioncostandattainingworldclassquality,GTZfacilitatedimplementationof
Quality Improvement Program (QIP)inselectapparelmanufacturingSMEsinNCRasapilotmeasure.QIPhasbeenimplementedinassociationwithOkhlaGarmentandTextilesCluster
(OGTC)byProf.RajeshBheda,CEORajeshBhedaConsulting.
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2. Cost of Poor Quality: An Introduction
ThoughtheIndianapparelindustryhasmadeeffortstowardscontrollingtheoutgoingqualityofthemerchan-dise;therightfirsttimequality level invariousmanufacturingprocessesneedssubstantial improvement.TherepairandrejectionlevelsintheIndianapparelmanufacturingfirmsstillremainquitehighcomparedtobestpracticefirmsinAsiaincludingIndia.
Themajorityoftimeandeffortofthequalitypersonnelofapparelmanufacturersseemtobedevotedtoin-spectingthealreadyproducedmerchandisethanpreventingthedefectsfromarising.Thisphenomenoncanmainlybeattributedtothenon-understandingoftheCostofQualityorinsimplewordsnon-understandingoftheamountofmoneywastedduetopoorquality.
AccordingtoJosephJuran,aleadingGuruofQuality:
Cost of poor quality consists of those costs that would disappear if our products and processes were perfect.
Forthepurposeofbetterunderstandingandcontrol,thecostofqualityisclassifiedinfourcategoriesnamelyPreventionCost,AppraisalCost,InternalFailureCostandExternalFailureCost.
Figure 2.1: Classification of Cost of Quality
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Afirstof itskindstudy Cost of Quality in the Indian Apparel industry, supported by Ministry of Com-merce,Govt.ofIndia,carriedoutbyDrRajeshBhedabroughtoutsomestartlingrevelations.Thestudythatcovered61apparelmanufacturersfromimportantmanufacturinghubsofthecountry,establishedthat:
AverageCostofqualityamongtheparticipatingfactorieswas14.05%oftheirsalesturnover.Insomefactoriesthecostofqualitywasashighas30%ofsales.
Thestudyalsorevealedthatonaveragethecompaniesspentonly0.26%ofsalestowardsthePreven-tioncost.TheAppraisalcostwas3.31%ofsaleswhereastheInternalFailureCostwasthehighestat9.86%ofsales.
Figure 2.3- Distribution of cost of Quality in Indian Apparel Industry
Figure 2.2- Average Cost of Quality as a percent of sales in Indian Apparel industry
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ItwasconcludedthatthecostofqualityintheIndianapparelindustrywastoohightobeneglected.Therewas an urgent need for investment in prevention of defect generation, improvement in effectiveness of in-spection and testing in apparel industry.
Inthecurrentenvironmentwherethereisahighpressureforreducingthesellingpriceofexportapparel,reductioninCOQcouldplayasignificantroleinretainingthecompetitiveadvantagewhilemaintainingprofit-abilityoftheindustry.
The findings of this research and subsequent assessment ofCost ofQuality in fourmembers ofOkhlaGarmentandTextileClusterbyDr.RajeshBhedageneratedkeeninterestamongthememberfactoriestoembarkuponthejourneyofQualityImprovementProgram(QIP).ThesupportunderSMEFinancing&De-velopmentProjectimplementedbyGTZprovidedthemuchneededenvironmentforprojectinitiation.MoreinformationabouttheimplementationapproachoftheQIPisexplainedinchapter5.
Thestudyfurtherconcludedthatreducingthe CostofQualityfrom14%to6%ofsalescanimprovetheprofitabilityof
Indianapparelmanufacturersbyalmost50%.
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3. ProfitingThroughQuality: Key Results of QIP Implementation
Theresultsoftheimplementationofqualityimprovementprogramhavebeenveryencouraging.Thefactoryteamswereveryexcitedabouttheirachievementsandvowedtocarryforwardtheimplementationtomarchonthepathofcontinualimprovement.Someofthekeyresultsoftheprogramareasstatedbelow:
3.1 Fall in Defect Rate
The Right first Time quality leveloftheparticipatingfactoriesimprovedsubstantially.ThereductioninthedefectratesattheEndofsewinglinesrangedfrom19.94%to78.6%withanaveragereductionof49.83%(fig3.1).Asalsocanbeseeninfigure3.2an3.3theimplementationofQIPresultedinsteepfallinthedefectratesamongtheparticipating factories.
Apart from sewing department, the participating factories also experienced steep fall in the defect rates in pattern making, cutting and finishing departments to the tune of 20% to 75%.
Inonefactorythemeasurementinaccuracyrateinpatternswentdownbyover75% InanotherfactoryCuttingauditfailureratewentdownfromabout20%to3%
Figure 3.1- Graph showing Decline in Defect rates in End-line inspection post implementation of QIP in Eight Different Factories
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3.2 Payback Period
TheCostBenefitAnalysisshowedestimatedmonthlysavingsofaboveRs.75000toRs.225000dependingonscaleofoperationsandimprovementsachieved.Thishasresultedinimpressivepaybackperiodoftwotofivemonths.Insomecasestheprogrampaidbackduringtheimplementationperioditself.
Figure 3.2- Bar graph Showing Decline in DHU and Percent Defective over a period of 3 months
Figure 3.3- Trend chart showing decline in DHU and Percent Defective over a period of 1 month
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3.3 Customer Feedback
InternationalcustomersofmanyparticipatingcompanieshaveappreciatedthesystemsintroducedthroughtheQIPandhaveupgradedthefactoryratingformallyorinformally.InonecasealeadingEuropeanretailerhasexemptedthefactoryfromthefinalinspectionbytheirqualityauditors.Somefactorieshavereportedthatnewcustomersappreciatedtheirqualitysystemandthusithelpedthemsecuringhighervaluebusiness.
3.4 Improved Subcontractors
Theimprovementsexperiencedarenotlimitedtotheparticipatingfactoriesalone.Inmanycasestheirsubcontractorshavealsobenefitedfromthebestpracticesoftheprogram.Inonecase,theaveragedefectratesofsevensubcontractmanufacturerswentdownby40.76%,Whilethehighestrateofdefectreductionwas71.32%.
3.5 Reduction in consumables and Environmental Impact
Oneoftheparticipatingfactorieshasreportedsubstantialreductioninchemicalconsumption(byover74%)asaresultofreductioninthestains.Thefactoryhadmanagedtobringdownthestainsbyabout67%(figure3.5)throughproblemsolvingapproachandimprovedhousekeeping.
Thefactoryalsoreportedreductionintheconsumptionofwater,fuelandelectricityduringQIPimplementa-tionleadingtomajorcostsavingsandmoreimportantly,reducingadverseimpactontheenvironment.Thisconsequentlyhasencouragedotherfactoriestoexplorethisopportunityarea.
3.6 Interdepartmental Team Spirit
Allparticipatingfactorieshavereportedimprovedinterdepartmentalteamspirit,communication,coordinationandoverallmotivationleveloftheworkforce.
Figure 3.4- Graphs Showing Reduction in Stains per hundred garment and reduction in cost of stain removing chemical after the implementation of QIP
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3.7 Decision Making and Problem Solving
Thefactoryteamshavedevelopedgreaterconfidenceinfactbaseddecisionmakingandproblemsolvingability.Theyfurtherreportedimprovementintheirknowledgeandskillsandtheirabilitytoapplythesameintheirprocessestobringinimprovements.
3.8 Training
Duringtheprogramatotalof324personnelfromthe10participatingfactoriesbenefittedfromthetraining provided by Rajesh Bheda Consulting.Out of these participants 103 were managers,97 were supervisors from various departments and remaining 124 belonged to quality controller/ checkercategory.
In addition to this the factory team memberstrainedbyRBC,conductedseveraltrainingses-sionsfortheworkerstospreadtheawarenessofRightFirstTimeQualitytograssrootlevel.
Figure 3.5- A factory team training session
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4. Case Studies
There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.
Henry Ford(1863-1947),Americanindustrialist
Thecollaborative journeyof implementationofQuality ImprovementProgramintheapparelmanufactur-ingMSMEshasbeentrulyrewardingforallthepartners,namelyGTZ,OkhlaGarmentandTextileCluster,participatingapparelmanufacturersandRajeshBhedaConsulting.ThoughthefocusoftheprogramwasonimprovingRightFirstTimeQualitylevelincoremanufacturingprocesseslikecutting,sewingandfinishing;andtheprogramresultedinsubstantialimprovementsintheseprocesses;theprogramalsoresultedinsig-nificantimprovementsinotherprocessesaswell.
Astheprogramwasimplementedinaflexiblemannertosuittheneedsofeachparticipatingfactory,widevarietyofprocessesandopportunityareasreceivedattentionofRBCconsultantsthusresultinginsizableimprovements.
OneofthemainobjectivesofthepilotimplementationoftheQIPwastocreateademoeffectaboutthevalueofusingconsultancyservicestoestablishQualitySystems.Thissectionofthepublicationaimsatsharingwiththewiderindustrycommunitysomeofthereal-lifecasestudiesemergingfromtheQIPimplementation.Thethemescoveredare:
1) Improvedcoordinationbetweenmerchandisingandproductionteam
2) Interdepartmentalteamspiritandcooperation
3) ReductioninstainsinGarments
4) Improvementinsubcontractedsewingquality
5) Improvementinsewingquality
6) Fabricinspectionsystem
7) InternalCustomerfeedbackmechanism.
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4.1 Improved Coordination between Merchandising and Production Team
The Challenge
Thecommunicationandcoordinationbetweenthemerchandisingandthefactoryteamwasun-satisfactory.Duetothisthemutualtrustandcooperationwasalsolimited.
Thisleadtofrequentdelaysinordershipmentsandclientteamneededtoengageinextracommu-nicationwithbuyingagenciesforlastminutechangesorapprovals.Thefactoryalsoexperiencedhighrejectionrateandhadtodoexcessiveovertimetomeettheshipmentdates.
The Client
TheclientisoneofIndiasleadinggarmentexporthouses.ItscustomersincludereputedretailstoresintheUS,UK,Sweden,Holland,CanadaandAustralasia.Thecompanymanufactureshighfashionladiesapparel,rangingfromcasualoutfitstoformaleveningwear.AllthefactoriesofthecompanyareISO9000certified.
The Solution
Consultativesessionswereorganisedbetweenthefactoryteamandmerchandisingteam,toexplaintheinternalcustomersupplierrelationandtheneedforimprovedcoordinationandsynergisingthework-ingofbothentitieswithorganisationalobjectiveinfocus
Facilitatedeachfactoryteamtoidentifyfiveimprovementsintheworkingoftheirdepartmentandfoundoutimprovementexpectationsformtheirinternalcustomerdepartments
Figure4.1.1- Major Challenge and its effects
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Based on these the factory teams initiated improvement projects to meet the internal customerexpectations.
Systematic problem solving efforts by the factory team under the guidance resulted in solving longpending issues, reduce defects and delays.
The Business Impact:
Theoverallrejectionrateofthegarmentshasgonedownbyalmost50%i.e.from4%tolessthan2%.Thishassizablepositiveimpactontheprofitabilityoftheorganisationapartfromseveralotherbenefits.
Other Benefits
TheQIPhasresultedinimprovedtrust,mutualunderstandingandcooperationbetweenthemerchandisingandfactoryteam.Frommostlyshortshipments,inlargecases,thefactoryhasstartedsendingshipmentswithexcessquantity.Theshipmentdelayshavegonedownsubstantially.Thishasledtoimprovedfactoryimageamongthecustomers.
Figure 4.1.2- Decline in the overall rejection rate post implementation of QIP
Figure 4.1.3- The benefits obtained by the factory from QIP
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Outcomes Percentage
Reductionindefectrateinpatterns 75%
ReductionincuttingroomAuditFailure 85%
Reductionindefectrateatendlineinspection 66%
Reductioninoverallrejectionrate 50%
4.2. Interdepartmental Team Spirit and Cooperation
The Challenge
The different departments of the factory believed that in spite of their best efforts the quality problemswerenoteliminatedbecauseotherdepartmentsdidnotdotheirjobright.Thoughthefactory teamunderstood the importance of serving the ultimate customerwith desired quality,theylackedinternalcustomerorientation.Inmanycasestheyblamedinternalcustomersofbeinghabitualcomplainants.
Qualityandproduction teamssuspectedeachothers intentions.Thechallengewastobring inthe common goal of external customer satisfaction through company-wide internal customer satisfaction.
The Client
TheclientproducesvalueaddedladieswearfortheUSandEuropeanmarket.Thecompanyhasastrongproductdevelopmentteam.Mostofthebusinessoftheclientisdirectlyhandledwithinternationalretailers/importerswithoutinvolvementofbuyingagentsorlocalsourcingoffices.
The Solutions
AftertheinitialtrainingonthefundamentalconceptsofRightFirstTimequalityandtheutmostrelevanceoftheconcept,consultantsconductedaseriesofsessionsbetweeninternalcustomersupplierdepartmentstounderstandtheexpectationsoftheinternalcustomers.
This was followed by initiation of small improvement projects in each department with the aim of satisfyingtheinternalcustomerdepartment.30suchprojectswereinitiated.
TheprogressoftheseprojectswasregularlymonitoredanddiscussedduringtheQIPCoreTeammeetingon weekly basis.
The Business Impact:
20 out of the 30 project initiated were successfully completed during the implementation of theQuality ImprovementPrograminthecompany.Asaresultofsuccessfulimplementationoftheseprojectsandregularprogressreview,allthedepartmentsofthefactorydevelopedgreaterconfidenceandtrustinotherdepart-ments.Thisbroughtintransparency,greaterappreciationofissuesinvolved,andinter-departmentalteamworkandover aperiodof time the factory teamsdevelopedability to solveproblems through collective brainstorming and data based decision making. No doubt the factory was handsomely rewarded with reductioninrejectionratebyalmost50%resultinginsubstantialcostsavings.
Thekeyoutcomeswere:
Table 4.2.1- Key outcomes of the QIP implementation
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4.3. Reduction in Stains on the garment
The Challenge
Alongsidetheproblemsofhighrepairlevelinsewingtheclientalsofacedsubstantiallyhighlevelofstainsinthegarments.Thismeantalotofadditionalworkinthefinishingdepartmenttoremovestains.Thisalsomeantexcessivecostofstainremovingchemicals.Thechallengewastofindoutthesourcesofthestains,establishtorootcausestotakepreventiveactions.
The Client
Theclient isanOkhlabasedmanufacturer,exportingtotheEuropeanMarket.Thecompanyismanagedbytheownerwiththehelpofexperiencedstaffinafamilylikemanner.Thecompanydealswithsmallorderquantitiesandhighstylevariation.Stitchingandembroideryistotallyoutsourced.
The Solutions
Thefinishingteamwastrainedindatacapturingtools likechecksheetstounderstandthefrequencyofstain relatedproblems.Thedatacollectedby thefinishing teamshowed thatevery100garmentsinspectedhadonanaverage46.13stains.
Thefactoryteamwasencouragedtouseproblemsolvingtechniquestounderstandtherootcausesofvariousdefectsfoundinthegarments.Suggestionswereinvitedformtheemployeesonhowtoprotectthegarmentsformstainsduringvariousprocesses
Theemployeesaswellassub-contractorsweresensitisedtotheproblemsofstains,theprecautionarymeasures were implemented and results were monitored on regular basis.
Figure 4.3.1- Graphs Showing Reduction in Stains per hundred garment and reduction in cost of stain removing chemical after the implementation of QIP
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The Business Impact
Theprojectresultedinimpressiveimpactfortheclient
Stains per hundred garmentswent down by 63% from 46.13 to 17.02while the cost of stain removing chemicalgarmentreducedby74%fromRs.1.38toRs.0.5perpiece.
Mostimportantly,thereductioninstainbecameoneoftheimportantfactorscontributingtomorethandou-blingtheproductivityofthefinishingdepartment.
Costofpower,waterandfuelwentdownbyRs.2.00perpiece.
A strong foundation has been laid in these three months for working towards improvement
-Factory owner, Indigo Apparel
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Some of our long pending issues have been resolved as a result of Cause and Effect Analysis implementation.
- Fabric Store In charge, Indigo Apparel
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First time we have realized the importance of data for the work what had been accomplished and its usage in understanding the situation
of the merchandise
- Finishing floor in charge, Super Fashions
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4.4. Improvement in subcontracted sewing Quality
TheChallenge
ThemanagementofthecompanywasthoughconvincedofthepossiblegainsfromQIP methodologyanditsvaluebutwasunsureabouttheprogramsimplementationinhighfashion,smallquantitymanufacturing.Sinceallstitchinginthisfactoryisoutsourced,thechallengewastoimprovethesubcontractorsthattheycouldandneededtoproducebetterqualityapparelwith-outexpectingincreaseinsewingcharges.
The Client
Theclient isanOkhlabasedmanufacturer,exportingtotheEuropeanMarket.Thecompanyismanagedbytheownerwiththehelpofexperiencedstaffinafamilylikemanner.Thecompanydealswithsmallorderquantitiesandhighstylevariation.Stitchingandembroidery is totallyoutsourced.The factoryworkswithabout15-20fabrication(stitching)units.
Solution
Aninteractivesessionwasorganizedwithsubcontractorstoexplaintothemtheimportanceofrightfirsttimequalityandunderstandthedifficultiesfacedbytheminachievingso.
Theywereexplainedwithsimpleexampleshowtheywillbeabletosavetimeandmoneybyproducingdefectfreegarmentsinthefirstattempt.
Thefactoryprovidedadetailedobjectivefeedbackonsewingqualitytosubcontractorsdetailingthetypeandfrequencyofdefectsgeneratedbythetailors.Thiswasusefulinexplainingthetailorsthespecificimprovementsneededintheirwork.
Business Impact
Theclientsawbreakthroughresultsintermsofreductionindefectratesinthegarmentsstitchedbythesubcontractors.Anaveragereductionindefectratesforsevenmainfabricatorswasreportedtobe40.76%.Ascanbeseeninthegraphthemaximumreductionwas71.32%whereasminimumreductionwas19.02%.
Figure 4.4.1- Drop in defect rate of seven fabricators over a period of 3 months
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Figure 4.5.1- Reduction in DHU=78.06% and a reduction in Percentage Defective=79.96%
4.5. Improvement in Sewing Quality
The Challenge
Itwasobservedthatreworklevelatproductionfloorduetostitchingdefectswasquitehigh.Thisledtotimeandenergylossofproductionlineoperatorsandsupervisors.Furtherthefinishingdepartmenthadtodohighamountofsewingrelatedreworktocompletetheshipment
The Client
TheNCRbasedclientworkswith leading internationalnamessuchasReebok,MayDepartmentStores,Chicos,UrbanOutfittersandAnthropology.Theclientproducesknittedapparelformen,womenandkids.Theproductrangeinvolvesblouses,tops,skirts,Poloshirt,t-shirtandtrackpants.ThequalitysystemofthefactoryiscertifiedunderISO9001:2000.
Intervention
Aninteractivesessionfortheproductionandqualityteamwasconductedtoexplaintothemtheimpor-tanceofrightfirsttimequalityforhurdlefreeproduction.
RBCsend-lineinspectiondatacapturingformatwasintroducedtounderstandexistingdefectsandtheirfrequency.
Thestitchingoperatorswerealsoexplainedtheimportanceofrightfirsttimequalityandhowtheywillbeabletoimprovetheirearningbyeliminatingdefects.
Trainingsessionsondataanalysis,problemsolvinganddailymanagementwereconductedbyconsul-tantstoeliminatethedefectsfromtheroots.
RBCsQualityManagementInformationSystemwasinstalledtogeneratemanagementreporting.
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Business Impact
Thedefectrateofthestitchingfloorcamedownby78.06%overthreemonthsperiod.
Asaresultof improvedsewingqualitythecompanydecidedtoeliminatequalityauditbeforesendingthemerchandisetofinishingdepartment.Thisresultedinredeploymentoffiveinspectionstaff.Needlesstosaytheprojectresultedinsubstantialcostsavingsforthefactory.
Weareenjoyingthelife-timeopportunityfromlearningthequalitymanagementsystems in workplace as well as in our personal life.
An end-line checker, Super Fashions
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Stitchingqualityhassubstantiallyimprovedthanearlier
-Finishing Manager, Super Fashion
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Iamgladtoseegoodresultsofsustainablereductionofalterationinstitchinginsuchhighpressuretime,Iamsurewewillperformbetterinthecomingtime
- Factory Manager, Super Fashions
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4.6. Fabric Inspection System
TheChallenge
Thechallengewastointroduceafactbased,objectivefabricqualityinspectionsystemsoastocreatethebasisforfabricqualityimprovement.
Thecostoffabricconstitutesabout50%to60%ofthegarmentcost.ThepopularperceptionintheNorthIndian apparel industry is that theirbiggestproblemisdelay infabricdeliveryandpoororunpredictablequalityof thefabric.It isalsowidelyperceivedthatthefabricprocessorsandsuppliersarenottookeentoengageinqualityimprovementactionsanditisasellersmarket.
The Clients
ThiscaseintegratesexperiencesfromthreeparticipatingfactoriesofQIP.AllofthemproducerelativelysmallorderqualitiesmainlyfortheEuropeanmarket.Garmentsproducedbytheminvolvemultipleprocessesandfabrictypesvarysignificantly.
The Solutions
Thefabricdepartmentteamwassensitisedtotheneedtohavefactualandobjectivedataonthefabricquality
Oncetheywereconvincedaboutthevalueofintroducinganinternationallyacceptablefabricinspectionprocedure,FourPointSystemoffabricinspectionwasintroducedintheparticipatingfactories
Figure 4.6.1- Benefits from effective use of fabric Quality performance data based on 4-point system
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Figure 4.6.2-Satisfaction Level of Cutting department on account of fabric quality for 4 months
Afterintroductionofthesystem,fabricteamwastrainedinanalysingdeliveryandqualityperformanceofdifferent fabric suppliers/ processors
Thefactoriesstartedprovidingwrittenfeedbacktofabricvendorswiththeircomparativeperformance.
Thiscreatedasenseofcompetitionandpressureonthefabricsupplierstotakeactionstoimprovetheperformance.
The Business Impact:
Allthethreefactorieshavereportedgradualimprovementinfabricqualitysuppliedbyfabricvendorsandprocessors after the introduction of the system.One factory reported that the arguments with suppliersrelatingtothejustificationofdebitnotesincaseofthedefectivefabrichavecometoanendasaresultofdetailedinspectionreportswhichclearlystatesthetypeandfrequencyofthedefectsfoundinthefabricsperroll.Cuttingroomsofthesecompanieshavereportedreceivingofbetterfabriccomparedtopre-QIPdays.Thishelpedcompaniesreduceifnoteliminatefabricdefectsreachingsewingandfinishingdepartmentsandresultant wastage.
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4.7. Internal customer feedback mechanism
The Challenge
ThoughthefactoryhadaverygoodperformanceatthestageofFinalQualityAuditsbytheircustomers,thefactorywasexperiencinghighinternalreworklevel.Themanagementwasconcernedabouttheresultantcostofqualityanddelays.Highinternalreworkalsoresultedinatendencyamongthestaffofpointingfingerswhenfacedwithproblems.Asaresult,conceptofcollectiveresponsibilityandapproachofworkingtogethertoachievecommongoalswaslow.Thechallengewastoestablishobjectivefeedbackmechanismbetweenthedepartmentsforreducingcommunicationgapandinitiatingtheprocessofcontinualimprovement.
The Client
Theclientisaleadingexporterworkingwithsomeofthefortune500retailers.Thefactoryproducesbaby,kidsandwomenswear.AcknowledgingthehighCostofQualityandunseenlossesincurredonaccountofit,theclientdecidedtoimplementQualityImprovementProgram.Thequalitysystemofthefactoryiscertifiedunder ISO 9001:2000.
Intervention
AftertheintroductorytrainingontheconceptsrelatedtoRightFirstTimequalityanddatabaseddecisionmaking,thefactoryteamwasintroducedtoRBCsmethodologyofinternalcustomeridentificationandun-derstandingtheirexpectations.
Oncethedepartmentalteamsagreedtoseekinternalcustomersatisfactionlevel,thefeedbackmechanismwas activated between internal customer and supplier departments.
Thefeedbackofinternalcustomerswasregularlyanalysedandcorrectiveactionsweretakenbythesupplierdepartments.Regularinterdepartmentalmeetingswereconductedtoreviewtheprogressmadeandissuesthatneededtobeaddressedonpriority.
Thefactorymanagementalsostartedreviewingthedailyfeedbacksummaryandencouragingtheprogressmadeaswellasprovidingguidancewhereeverneeded.
Business Impact
Introductionoffeedbackmechanismshashelpedeachdepartmenttogettimelyfeedbackontheirworkandidentifyareasfor improvementandavoidingrepetitionofmistakes.Incaseofcuttingdepartment,thead-versefeedbackreducedby50%.
Theimprovementactionsofdepartmentsresultedinhigherinternalcustomersatisfactionfurtherleadingtoimprovedinterdepartmentalcommunicationandunderstandingoftheissues.
Mutualunderstanding,respectandprofessionalappreciationofotherdepartmentshascreatedbetterwork-ing environment.
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Commentsoffactoryteamoninitiatingthefeedbackmechanism:
Thishashelpedmesolvemanyofthequalityand production issues.
Factory Manager
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Wehavestartedwaitingeagerlytoknowourperformance
throughfeedbackmechanism.
Production Manager
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Wearesatisfiedthattheblamegamehasliterallydisappearedand wearehappierworkinginco-ordinationwithfabric
andstitchingdepartment
- Cutting Room In charge
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Ithasbecomeeasierforustoknowtheproblemfacedbyproduction duetothesystemoffeedbackregister
-Cutting QA, Radnik Exports
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Ifeelproudtoshowyoumyfeedbackregister. Wearebeingappreciatedforthegoodworkwearedoing.
- Cutting manager, Saivana Exports
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Themoraleandmotivationofmydepartmenthasincreased asgoodperformanceandimprovementisapplaudedbytheseniors
Floor Incharge, Radnik Exports
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5. Q I P : Planning and ImplementationApproach
5.1 Planning:
Figure 5.1- Planning Approach of QIP
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Figure 5.2- Quality Improvement Programme implementation Methodology
5.2 Implementation Methodology
GAP Analysis : Critical Step
GAPanalysiswascarriedouttoassessthecurrentsystemsandprocedures,understandthedefectlevelsandassessingthepreparednessoftheteamforQIP.BasedontheoutcomesofGAPanalysistheQIPimple-mentationplanisadaptedandfine-tunedtomeetthespecificneedoftheindividualfactory.
SomeofthekeyfindingsoftheGapanalysiswereasfollows:
- Extensiveinspectionswerenoteffectiveinstoppingthedefectivegarmentsfrommovingforwardtothenextprocesses.
- Therewasahighsuccessrateatbuyerqualityauditstagebutthiswasachievedafterhighre-worklevelinsewingandfinishingdepartments.
- Inmostcasesthedefectrelateddatawereunderreportedandnotanalysed.
- In some cases inspection did not give the clear picture as rework level related data were not available.
- Systematicproblemsolvingwasrarelypracticed.
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Formation of Cross-functional team for QIP
Acrossfunctionalteamwasformedineachoftheparticipatingfactoryfortheplanning,implementationandreviewoftheQIP.
Training provided to key Team members
TrainingintheareasoffundamentalconceptsofQualityformedthemainbaseoftheQualityImprovementProgram.Thefactoryteamsareencouragedtoquestionthecurrentprocessesandseekbetteralternatives.Thespecifictrainingthemescoveredwere:CustomerFocus,RightFirstTimeQuality,PDCA,AQL,RawMa-terialInspectionSystems,SQC,CauseandEffectAnalysis,DataAnalysisandReportingSystemandotherneed based areas.
Figure 5.3: Components of the training provided to Key members
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6. TechnicalTermsexplained andputintocontext
1. Appraisal Cost: Costincurredtodeterminethedegreeofconformancetoqualityrequirements(mea-suring,evaluatingorauditing).Example: Inspection, testing,processor serviceaudits, calibrationofmeasuring and test equipment.
2. DHU (Defects per Hundred Units): Theratioofnumberofdefectsperlotorsample,expressedasapercentage.
DHU=NumberofDefectsx100dividedbyNumberofUnits.
3. External Failure Cost: Costassociatedwithdefectsfoundafterthecustomerreceivestheproductorservice.Example:processingcustomercomplaint,customerreturn,warrantyclaim,productrecall.
4. GAP analysis: Gapanalysisisabusinessresourceassessmenttoolenablingacompanytocompareitsactualperformancewithitspotentialperformance.Atitscorearetwoquestions:Wherearewe?andWheredowewanttobe?
5. Internal Failure Cost: Costassociatedwithdefectsfoundbeforethecustomerreceivestheproductorservice.Example:Scrap,rework,re-inspection,re-testing,materialreview,materialdowngrades
6. Pareto analysis: Paretoanalysisisastatisticaltechniqueindecisionmakingthatisusedforselectionofalimitednumberoftasksthatproducesignificantoveralleffect.Thepurposeistohighlightthemostimportantamonga(typicallylarge)setoffactors.Inqualitycontrol,theParetochartoftenrepresentsthemostcommonsourcesofdefects,thehighestoccurringtypeofdefect,orthemostfrequentreasonsforcustomer complaints, etc.
7. Percent Defective:Theratioofdefectivepiecesperlotorsample,expressedasapercentage.
8. Prevention Cost:Costincurredtoprevent(keepfailureandappraisalcosttoaminimum)poorquality.Example:Newproductreview,qualityplanning,suppliersurveys,processreviews,qualityimprovementteams, education and training.
9. SPC (Statistical Process Control): Itisamethodofmonitoringaprocessthroughtheuseofcontrolcharts.Muchofitspowerliesintheabilitytomonitorbothprocesscentreanditsvariationaboutthatcentre.Bycollectingdatafromsamplesatvariouspointswithintheprocess,variationsintheprocessthatmayaffectthequalityoftheendproductorservicecanbedetectedandcorrected,thusreducingwasteaswellasthelikelihoodthatproblemswillbepassedontothecustomer.Withitsemphasisonearlydetectionandpreventionofproblems,SPChasadistinctadvantageoverqualitymethods,suchasinspection,thatapplyresourcestodetectingandcorrectingproblemsintheendproductorservice.
35Profiting through Quality
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OGTCaclustercentricapproachisthefirstofitskindwithmissionexcellenceasitsmotto.Thoughthemembersarenothavingphysicalproximitybutareclearintheirmindsthatsuccesscanonlybeachieved through collective thinking and cooperation. Likeminded entrepreneurs got together andcreatedOGTCtoprimarilystrengtheneachmemberbycomplementingeachother,byidentifyingbestpractices,implementingintensivecollectivetrainingandadoptingoutoftheboxapproachandprovideinputsasathinktanktothegarmentindustry.
ItisexpectedthatOGTCinitiativesinbuildingcompetitivenesswillcreateademoeffectfortheindustryandwillleadtooverallimprovementandnicheintheglobalarena.QualitymanagementthroughQIPisoneofthemanyinitiativesundertakenbyOGTC.
Thisprogrammehaslaidthefoundationforadvancedprogrammesinqualitymanagementsothatfirsttimerightandrighteverytimebecomesahabitandeventuallythecultureofthecompany.
Mr.R.C.KesarDirectorOGTCEmail [email protected]
RajeshBhedaConsulting(RBC)isaknowledgeorganizationfocusedonenhancingcompetitivenessofthefashionindustryorganisations.itfirmlybelievesthatperformanceoftheapparelmanufacturingorganisationscanbesignificantlyenhancedthroughoverallproductivityandqualityimprovement. RBChasbeenworkingcloselywithmanyleadingnationalandinternationalplayersintheapparelsec-torwiththepurposeofbringinginproductivityandqualityimprovementsforachievingbetterproduceandimprovedworkingconditionswhileretainingthecostcompetitiveness.
FoundedbyProf.RajeshBheda,anexpertonclothingmanufacturingmanagement,RBCiscommittedtomaketheindustryawareofitsimprovementpotentials,drawstrategiesforimprovementandguidetheminachievingthepotential
Dr.RajeshBhedaCEO,[email protected]
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SIDBIistheprincipalfinancialinstitutionforthepromotion,financinganddevelopmentofindustryinthesmallscalesectorandtoco-ordinatethefunctionsoftheinstitutionsengagedinthepromotionandfinancingordevelopingindustryinthesmallscalesectorandformattersconnectedtherewithorincidentalthereto.
SIDBIistheimplementingagencyfortheSMEFinancing&DevelopmentProject.SIDBIhassetupaprojectmanagementdivisioninNewDelhichargedwithsmoothimplementationoftheproject.
Incorporatedin1978,AEPCistheofficialbodyofapparelexportersinIndiathatprovidesinvaluableassistancetoIndianexportersaswellasimporters/internationalbuyerswhochooseIndiaastheirpre-ferred sourcing destination for garments.
ForIndianexporters,AEPCisquiteliterallyaone-stopshopforinformation;advise,technicalguidance,workforceandmarketintelligence.Membershaveaccesstoupdatedtradestatistics,potentialmarkets,informationoninternationalfairsandassistanceinparticipatingatthesefairs.Italsoplaysalargerolein identifying new markets and leading trade delegations to various countries.
InrecentyearsAEPChasworkedtirelesslyinintegratingtheentireindustry-startingatthegrassrootleveloftrainingtheworkforceandsupplyingasteadystreamofmanpowertotheindustry;identifyingthebestcountriestosourcemachineryandotherinfrastructureandbrokeringseveralpathbreakingdealsforitsmembersandfinallyhelpingexporterstoshowcasetheirbestathomefairsaswellasbehighlyvisibleatinternationalfairstheworldover
IndiahasbeenapartnercountryofGermanDevelopmentCooperationfornearly50years.Foralmostallofthistime,GTZ-DeutscheGesellschaftfuerTechnischeZusammenarbeit(GTZ)GmbH-hasbeenactiveinIndiaonbehalfoftheGermanFederalMinistryforEconomicCooperationandDevelopment(BMZ).
Establishedin1975,GTZisorganisedasaprivatecompanyownedbytheGermanFederalGovern-ment.TheBMZisitsmajorclient.ThecompanyalsooperatesonbehalfofotherGermanMinistries,partner-countrygovernmentsandinternationalclientssuchastheEuropeanCommission,theUnitedNationsandtheWorldBank,aswellasonbehalfofprivateenterprises.Itprovidesviable,forward-looking solutions for political, economic, ecological and social development in a globalised world.
ToaddressIndiasdevelopmentprioritiesofsustainableandinclusivegrowth,GTZsjointeffortswiththepartnersinIndiacurrentlyfocusonthreeprioritysectors:Energy,SustainableEconomicDevelop-ment and Environmental policy, conservation and sustainable use of natural resources.
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APPARel exPoRT PRomoTIon CounCIl(Sponsored by Govt. of India. Ministry of Texitles)Apparel House, Sec 44,Industrial Area, Gurgaon - 122003, Haryana.Tel: 91-124-2708000-3E-mail: [email protected]
SmAll InduSTRIeS develoPmenT bAnk oF IndIAProject Management DivisionVideocon Tower, Ground FloorE-1, Rani Jhansi Road, Jhandewalan ExtensionNew Delhi-110055Tel: 011 - 23682474-77E-mail: [email protected]
Deutsche Gesellschaft fr Technische Zusammenarbeit (GTZ) GmbH
German Technical Cooperation SME Financing and Development Programme B-5/1, Safdarjung Enclave, New Delhi - 110 029, India Tel: +91 11 2671 5952 / 5826 Fax: +91 11 2616 6844 E-mail: [email protected], [email protected] Website: www.gtz.de
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